WEBVTT - It Pays to Invest in Your Vices 0:00:01.760 --> 0:00:04.400 This is Bloomberg Business Week. I'm Carole Masser and I'm 0:00:04.440 --> 0:00:07.280 Bloomberg Quick Takes Tim Stanibek. We're here every day bringing 0:00:07.280 --> 0:00:09.800 you the latest news from the world to business and finance, 0:00:09.800 --> 0:00:13.640 plus technology, politics, economics, all partnising the power of Business 0:00:13.640 --> 0:00:17.119 Week reporters and editors, not to mention our journalists and 0:00:17.120 --> 0:00:19.960 analyst in more than one twenty countries. You can download 0:00:20.000 --> 0:00:23.200 Bloomberg Business Week and iTunes, SoundCloud, or Bloomberg dot Com. 0:00:23.360 --> 0:00:25.120 You can also listen to our radio show at two 0:00:25.160 --> 0:00:27.840 pm Eastern Time on Bloomberg Radio, or watch us on 0:00:27.880 --> 0:00:31.680 YouTube search Bloomberg Global News. This next guest we actually 0:00:31.720 --> 0:00:34.560 caught up with in Dallas last month at the b 0:00:34.720 --> 0:00:37.240 N y Mail and Pershing Insight twenty two conference. We 0:00:37.360 --> 0:00:40.680 talked about investing what's often called vice company. So great 0:00:40.720 --> 0:00:43.400 to have back with us. Dan Aaron's is managing director 0:00:43.440 --> 0:00:47.440 and portfolio manager at Advisor Shares in Investments. Joining us 0:00:47.440 --> 0:00:51.040 from Dallas. Dan, how are you. I'm doing well. Thanks 0:00:51.080 --> 0:00:52.920 for having me on again. Guys, Well, it's great to 0:00:52.920 --> 0:00:54.960 have you back. My first question is did you get 0:00:54.960 --> 0:00:59.200 COVID at that event? Because I did, Oh, I did not. 0:01:00.040 --> 0:01:02.120 I'm sorry that makes two of us. Dan, I'm glad 0:01:02.160 --> 0:01:04.200 to hear that you were okay after that, because Carol 0:01:04.280 --> 0:01:06.080 came back from Texas with a little gift that ended 0:01:06.120 --> 0:01:09.320 up lessing what aryl about a month. Yeah, I ended 0:01:09.360 --> 0:01:11.000 up with back to back COVID because I had a 0:01:11.040 --> 0:01:14.720 rebound case. Um. It was not fun, but it was 0:01:14.760 --> 0:01:17.160 so fun that we got to meet and catch up 0:01:17.200 --> 0:01:19.919 with you, UM and talk a little bit about vice investing. 0:01:19.959 --> 0:01:21.560 We've been checking out some of your e t F 0:01:21.600 --> 0:01:24.920 they're actively managed. They invest in things like cannabis. There's 0:01:24.959 --> 0:01:28.720 a handful of them. Uh, there's also psychedelics, there's hotel, 0:01:28.760 --> 0:01:32.520 there's restaurants. They've all had a pretty good month overall. 0:01:32.880 --> 0:01:36.080 Tell us about your world and if you're seeing inflows 0:01:36.160 --> 0:01:38.679 into these funds and how you're thinking about them in 0:01:38.720 --> 0:01:43.560 today's current environment. Certainly, and there's UM quite a few 0:01:43.760 --> 0:01:46.160 different funds that we have, but a lot of people 0:01:46.200 --> 0:01:50.360 have been interested in, you know, investing in certain themes. 0:01:50.720 --> 0:01:52.040 It's a good thing you can do in e t 0:01:52.280 --> 0:01:56.160 F And you know, we've always espoused a little bit 0:01:56.200 --> 0:02:01.000 about investing in vice and what it really means though, 0:02:01.200 --> 0:02:05.240 is just investing in people's habits, investing in what people 0:02:05.320 --> 0:02:08.160 do no matter what the stock markets doing or no 0:02:08.280 --> 0:02:12.440 matter what the economy is doing. And that's why there's 0:02:12.639 --> 0:02:16.240 probably some more eyeballs on our types of funds because 0:02:17.120 --> 0:02:19.799 the Fed's raising rates. There's all this talk about is 0:02:19.840 --> 0:02:21.880 it a recession, is it not a recession, or are 0:02:21.880 --> 0:02:26.560 they moving the goal line? But but Danner, eyeballs meaning 0:02:26.560 --> 0:02:30.400 that people are actually investing money in your funds. Yeah, 0:02:30.520 --> 0:02:34.120 so um, you know, we think people should be looking 0:02:34.200 --> 0:02:39.799 at the vice investments now forment for investment. Our cannabis 0:02:39.880 --> 0:02:44.079 funds have once again been seeing some inflows, some movement 0:02:44.280 --> 0:02:46.679 in this past month, and that might be what you're 0:02:46.720 --> 0:02:50.200 referring to. So um, you know, a few different things 0:02:50.200 --> 0:02:54.320 to talk about here, But we've always said that alcohol, 0:02:54.520 --> 0:02:58.160 even tobacco stocks, things like gaming. So these are things 0:02:58.200 --> 0:03:03.080 that have long history of weathering difficult times or rough 0:03:03.240 --> 0:03:09.320 markets historically. They've done it for decades, holding up better 0:03:10.160 --> 0:03:14.440 in recessionary or or rough times. I can't say they're 0:03:14.440 --> 0:03:16.079 always going to go up when the market is going 0:03:16.160 --> 0:03:18.359 down or anything crazy like that, but they have a 0:03:18.400 --> 0:03:20.799 long history of holding up. What is now, Dann, I 0:03:20.800 --> 0:03:22.000 want to jump in here because we don't have a 0:03:22.000 --> 0:03:24.239 ton of time, and I'm really curious about consumer behavior. 0:03:24.240 --> 0:03:25.880 It's something that I've been taking a lot about because 0:03:25.880 --> 0:03:28.320 the consumer is absolutely in charge when it comes to 0:03:28.520 --> 0:03:31.480 this economy. But I get what you're saying about tobacco. 0:03:31.520 --> 0:03:33.520 I mean it's, after all, it's addictive, so you know, 0:03:33.560 --> 0:03:37.600 in a recessionary times and it's held up. Um, alcohol, 0:03:37.800 --> 0:03:40.560 I'm wondering do people trade down because we've been hearing 0:03:40.600 --> 0:03:43.440 about from Walmart, for example, that people are trading down 0:03:43.720 --> 0:03:46.920 when it comes to generics versus name brands. I'm wondering 0:03:47.160 --> 0:03:49.200 if we see that type of behavior when it comes 0:03:49.240 --> 0:03:54.520 to vices we commonly do. Now it's been too short term. 0:03:54.560 --> 0:03:57.000 We don't really have the statistics yet for what's going 0:03:57.040 --> 0:04:01.440 on right now. But what we'll typically see, um, Actually, 0:04:01.600 --> 0:04:04.680 in the last few years, craft bears have been very hot, 0:04:04.720 --> 0:04:09.080 and craft liquors, a lot of your smaller batch designer 0:04:09.160 --> 0:04:13.760 alcohols have been more in vogue. But if things last, 0:04:14.080 --> 0:04:17.400 if we actually go into a real recession, um, what 0:04:17.440 --> 0:04:21.760 you're gonna see is more of the middle brands and 0:04:22.200 --> 0:04:27.159 more of the mass produced beer holding up better than 0:04:27.200 --> 0:04:29.400 some of the other things. We might see, as you said, 0:04:29.920 --> 0:04:34.160 some people trading down from the from the higher end liquors. 0:04:34.640 --> 0:04:37.440 That's true when I asked about psychedelics, because we recently 0:04:37.680 --> 0:04:41.479 in Bloomberg Pursuits did a whole thing on magic mushrooms. 0:04:41.520 --> 0:04:44.160 The entire Pursuit section last week dedicated to it. It's 0:04:44.160 --> 0:04:47.039 pretty remarkable, right, and talks about the psychic psychedelics, but 0:04:47.080 --> 0:04:50.760 also consumer products. Um, what else we talk about alternative 0:04:50.800 --> 0:04:54.159 meats based off of funky and you know the root 0:04:54.240 --> 0:04:56.680 of mushroom. Really interesting stuff happening in the space. So 0:04:56.720 --> 0:04:58.960 what are you seeing and what's I'm curious about the 0:04:59.000 --> 0:05:01.960 opportunities for you since it's actively managed, are you finding 0:05:01.960 --> 0:05:06.880 more opportunities companies publicly held to actually invest in. Yeah, 0:05:07.240 --> 0:05:09.599 a few years ago, it wouldn't have been possible to 0:05:09.600 --> 0:05:13.320 have a psychedelics ets like we do. UM that ticker 0:05:13.360 --> 0:05:17.920 symbol p SILL, which is short for psilocybin. But now 0:05:17.920 --> 0:05:20.600 there are enough companies to invest in. But I want 0:05:20.640 --> 0:05:23.080 to stress the people, it's still a very small fund. 0:05:23.480 --> 0:05:27.560 These are microcap stocks, but we have a whole handful 0:05:27.640 --> 0:05:29.719 listed on the New York Stock Exchange or more often 0:05:29.720 --> 0:05:33.200 on NASDAC. But people need to understand investing in a 0:05:33.279 --> 0:05:36.560 psychedelics company is it's a lot different than cannabis that 0:05:36.600 --> 0:05:41.240 we also invest in psychedelics. We're talking about real biotech 0:05:41.560 --> 0:05:48.480 pharmaceutical companies here doing real research on mental health treatments 0:05:48.960 --> 0:05:52.720 that can be used with all sorts of psychedelics. Psilocybin 0:05:52.880 --> 0:05:59.920 mushrooms is the most common, but brain injury, PTSD, depression. Uh. 0:06:00.320 --> 0:06:01.960 We know that a lot of those drugs have been 0:06:02.080 --> 0:06:05.320 overprescribed by big pharma, and I think this is a 0:06:05.360 --> 0:06:07.960 good solution. Yeah, we've definitely covered that in the magazine 0:06:08.000 --> 0:06:11.080 Business Week. Um, Dan, thanks so much. Dan Aaron's managing director, 0:06:11.120 --> 0:06:15.440 portfolio manager Advisor shares Investments. This is Bloomberg Business Week 0:06:15.600 --> 0:06:19.600 with Carol Masser and Bloomberg Quick Takes Tim Stinovic on 0:06:19.720 --> 0:06:22.160 Bloomberg Radio. I don't know if you noticed it, Tim, 0:06:22.200 --> 0:06:25.120 You probably did because you watch this closely. Bitcoin and Ether, 0:06:25.480 --> 0:06:28.000 the world's two largest digital tokens, headed toward their best 0:06:28.040 --> 0:06:31.080 month since I'm in a revival of risk capatite and 0:06:31.080 --> 0:06:34.680 global markets and optimism about an Ethereum network upgrade. I 0:06:34.720 --> 0:06:36.680 saw this and I thought to myself, talk about, you know, 0:06:36.720 --> 0:06:40.400 correlation between US equity markets, because yeah, risk on and 0:06:40.440 --> 0:06:42.440 I think that's certainly what we're seeing. I'm interested what 0:06:42.560 --> 0:06:45.080 we hear from Doug Schwank. Though our next guests CEO 0:06:45.160 --> 0:06:49.560 at Digital Asset Research. They provide crypto data, clean crypto 0:06:49.680 --> 0:06:52.480 data for institutions. We should not that Bloomberg did announce 0:06:52.480 --> 0:06:56.320 a partnership with Digital Asset Research back in June to 0:06:56.320 --> 0:06:59.640 provide terminal users with clean crypto pricing. Doug, good to 0:06:59.640 --> 0:07:02.200 have you with us. How are you great? How are 0:07:02.240 --> 0:07:04.200 you doing pretty well? Thanks? Well, I want to start 0:07:04.200 --> 0:07:06.839 with pricing and what Carol mentioned that we're seeing the 0:07:06.920 --> 0:07:11.600 best month in what Carol about a year for Yeah, 0:07:11.600 --> 0:07:14.800 for for bitcoin and for for ether um. Is this 0:07:14.920 --> 0:07:17.960 just risk on? Is that what it is? Well, I 0:07:17.960 --> 0:07:22.720 think we're looking at the coming ethereum merge where we 0:07:22.920 --> 0:07:25.440 go to a proof of steak. That's really I think 0:07:25.480 --> 0:07:31.080 the biggest story in the near term. Obviously there's a 0:07:31.240 --> 0:07:35.440 huge macro impact here as well. Um the fact that 0:07:35.520 --> 0:07:41.600 the FED is raising rates um as people expect basis 0:07:41.640 --> 0:07:44.760 points yesterday. I think that's a big part of the story. 0:07:45.000 --> 0:07:46.520 Can you can you? I just want to follow up 0:07:46.520 --> 0:07:48.800 on that and have you explained proof of steak versus 0:07:48.800 --> 0:07:51.040 proof of work for audience if they haven't been following 0:07:51.080 --> 0:07:57.680 this closely. Yeah, So historically um ethereum and today um 0:07:57.760 --> 0:08:04.080 ethereum validates transactions with proof of work. So there are minors. 0:08:04.160 --> 0:08:07.880 You may have heard about this with bitcoin. It's it's 0:08:08.000 --> 0:08:12.280 uh both bitcoin ethereum. It's the way that uh that 0:08:12.480 --> 0:08:18.640 people in a decentralized network agree on transactions. So proof 0:08:18.760 --> 0:08:24.080 of of work involves solving a math puzzle to agree 0:08:24.320 --> 0:08:27.760 on what the right solution to it to um that 0:08:27.800 --> 0:08:32.200 puzzle is, and then if there's enough consensus as it 0:08:32.280 --> 0:08:36.600 as it were, the the word is consensus that that 0:08:36.840 --> 0:08:40.480 suggests what UM will what we will all agree are 0:08:40.520 --> 0:08:44.520 the right transactions to validate on the network. Proof of 0:08:44.520 --> 0:08:49.160 work is a much more um kind of computer intensive 0:08:51.400 --> 0:08:54.720 algorithm versus proof of steake, where we're going to see 0:08:55.280 --> 0:09:00.160 people um uh put their assets at risk. So I'm 0:09:00.160 --> 0:09:04.080 going to stake some assets and if I can confirm 0:09:04.200 --> 0:09:08.040 transactions on the network, If I say, look, this ethereum 0:09:08.080 --> 0:09:12.440 transaction goes through because it's it's a valid transaction, I 0:09:12.480 --> 0:09:15.920 put my assets at risk. And if I am wrong 0:09:16.000 --> 0:09:21.120 and I validate transactions that are nefarious, then I'll lose 0:09:21.200 --> 0:09:25.280 some amount of my assets. So proof of steak is 0:09:24.720 --> 0:09:28.760 a is a much more UM. It's much more driven 0:09:28.800 --> 0:09:31.960 by what I put at risk instead of do I 0:09:32.000 --> 0:09:35.440 solve the right math problem and and uh and therefore 0:09:35.480 --> 0:09:38.600 confirmed the right transactions. So you're all about First of all, 0:09:38.640 --> 0:09:40.360 there's a bunch of us who are like, okay, man, 0:09:40.360 --> 0:09:42.760 I gotta google more and understand this. I mean, it's funny. 0:09:42.760 --> 0:09:47.000 I did a future of Money panel at b and 0:09:47.160 --> 0:09:50.640 y Mail and Pershing Insight in June. Tim and I 0:09:50.679 --> 0:09:52.880 were there and we were talking, and I had a 0:09:52.880 --> 0:09:56.240 bunch of crypto experts, you really understand this, And they said, 0:09:56.240 --> 0:09:59.000 you know, the language where we are in this whole 0:09:59.040 --> 0:10:01.880 world is very very early on and and there's you know, 0:10:01.880 --> 0:10:04.520 we're kind of learning and finding our way Doug on this, 0:10:04.640 --> 0:10:10.000 including the terminology UM and and so we're kind of 0:10:10.080 --> 0:10:12.160 learning as we go. But but you talk about clean 0:10:12.280 --> 0:10:18.760 crypto pricing, and that's what you're getting to. I assume, well, 0:10:19.080 --> 0:10:24.320 we think about pricing coming from those who are transacting data. 0:10:24.600 --> 0:10:27.880 I think that's a little bit different than the validation, 0:10:27.960 --> 0:10:30.440 the proof of work, proof of mistake, you know, the 0:10:30.440 --> 0:10:35.160 the ethere emerge. We pull prices from the likes of 0:10:35.200 --> 0:10:40.200 a coin base or kracking or or similar types of exchanges, 0:10:40.760 --> 0:10:43.120 and we just we try to clean up those because 0:10:43.600 --> 0:10:47.800 in a it's a very unregulated world, and when the 0:10:48.160 --> 0:10:52.120 when exchanges are unregulated, we see some bad behavior. And 0:10:52.400 --> 0:10:55.760 so when we think about like wash trading or u 0:10:56.120 --> 0:10:58.760 K email issues or other types of things, we just 0:10:58.840 --> 0:11:01.520 want to make sure that the price that people see 0:11:01.920 --> 0:11:05.559 is is a high quality price. And and we've seen 0:11:05.640 --> 0:11:11.720 from people like Michael Saylor is micro Strategy micro Strategy. Yeah, 0:11:11.800 --> 0:11:14.320 he said, look, I can't rely on what I see 0:11:14.360 --> 0:11:16.800 out there, and that's been in the Wall Street Journal, 0:11:16.880 --> 0:11:20.520 has been on Bloomberg, has been in other places. Look, 0:11:20.920 --> 0:11:23.280 you know, we want to make sure that when people 0:11:23.440 --> 0:11:26.040 are relying on a price, they know that it's a 0:11:26.880 --> 0:11:28.880 high quality. I mean, that's what happens when they're different 0:11:28.880 --> 0:11:31.760 exchanges selling sort of the same thing, right, Doug, I mean, okay, 0:11:31.800 --> 0:11:33.599 we do. We only have a minute left, but I 0:11:34.040 --> 0:11:35.640 want to get your take on this because Carol and 0:11:35.640 --> 0:11:38.120 I were talking about this ahead of the interview, and 0:11:38.360 --> 0:11:39.800 it's just I think a lot of this is so 0:11:39.880 --> 0:11:44.040 confusing for the end consumer, and I wonder if if 0:11:44.120 --> 0:11:48.160 that is a barrier to adoption. That plus the volatility 0:11:48.160 --> 0:11:50.000 that we've seen over the last year. Is that a 0:11:50.040 --> 0:11:52.800 barrier to the adoption in the industry and just have 0:11:52.880 --> 0:11:57.280 about thirty seconds. Of course, it is a big barrier, 0:11:57.440 --> 0:12:02.160 and I think there's lots of help that we could 0:12:02.200 --> 0:12:07.040 see from you know, from regulator regulators and uh, you know, 0:12:07.720 --> 0:12:11.000 the congressional and other leaders who could bring kind of 0:12:11.040 --> 0:12:14.120 clarity to some of these issues and help us with 0:12:14.400 --> 0:12:21.640 UM a better UM framework for for prices. But absolutely 0:12:21.679 --> 0:12:24.120 it's a huge barrier. Well, we'll be sure to continue 0:12:24.120 --> 0:12:26.079 this conversation with you, Doug in the future. Dutch Wan 0:12:26.160 --> 0:12:29.920 Key's chief executive officer at our Digital Asset Research. It's 0:12:29.920 --> 0:12:32.840 a provider of crypto asset data and research. This is 0:12:32.880 --> 0:12:36.839 Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes 0:12:36.920 --> 0:12:41.040 Tim Stinovic on Bloomberg Radio. It's all about the climate. 0:12:41.080 --> 0:12:42.760 We're going to talk about the author of a book 0:12:43.160 --> 0:12:47.040 about climate restoration, a different way of really protecting our 0:12:47.160 --> 0:12:49.920 environment and really making a difference. Yeah, I get you know, 0:12:50.240 --> 0:12:53.319 it's interesting, Carol. We talked about technologies that can actually 0:12:53.360 --> 0:12:57.040 help us avoid a catastrophe when it comes to climate change. 0:12:57.200 --> 0:12:59.080 And the author who's going to be joining us in 0:12:59.120 --> 0:13:02.720 just a second. Your Fakowski argues that there are actually 0:13:02.760 --> 0:13:06.160 technologies out there that are safe and effective in reducing 0:13:06.200 --> 0:13:08.599 carbon Yeah, this is an interesting dude. He's an m 0:13:08.640 --> 0:13:12.720 I T. Educated physicist and engineers worked for NASA. Uh. 0:13:12.720 --> 0:13:15.960 He's also worked at the fair Child Slumbers, a AI 0:13:16.280 --> 0:13:19.480 intel lab in Paladato, California. So he looks at this 0:13:19.520 --> 0:13:21.880 from a very it sounds like scientific way. So let's 0:13:21.880 --> 0:13:24.400 get to Peter. He joins us now via zoom from 0:13:24.440 --> 0:13:27.320 Los Altos, California. Peter, it is good to have you 0:13:27.400 --> 0:13:31.360 here with us. We've only got a certain amount of time. Climate. 0:13:31.400 --> 0:13:33.360 Anything with the climate is a big topic that you 0:13:33.400 --> 0:13:36.360 could spend hours on. Tell us about your thesis. What 0:13:36.559 --> 0:13:42.080 is climate restoration? Well, climate restoration is very interesting. It's 0:13:42.160 --> 0:13:45.640 the it's the goal of restoring a climate that humans 0:13:45.640 --> 0:13:49.160 have actually survived long term, and so it's much more 0:13:49.280 --> 0:13:52.680 radical than the conventional thinking of trying to reduce the damage. 0:13:53.280 --> 0:13:56.760 It's Uh, it's the engineering idea of we want to 0:13:56.800 --> 0:14:01.000 restore what works for human beings, and it turns out 0:14:01.080 --> 0:14:04.839 that we have the technology and the finance to do it. 0:14:05.120 --> 0:14:07.400 We just need to start talking about it because we've 0:14:07.400 --> 0:14:10.120 been talking about a much worse schal What's interesting is 0:14:10.120 --> 0:14:13.480 I've never heard of this technology that you argue we 0:14:13.520 --> 0:14:18.319 have right now. Ocean pasture restoration, for example, synthetic limestone manufacture, 0:14:18.400 --> 0:14:22.760 seaweed permaculture, and methane oxidation. These are the four technologies 0:14:22.800 --> 0:14:25.160 you say that can help us get us there. Let's 0:14:25.160 --> 0:14:28.440 start with ocean pasture restoration. How does it work? Yeah, 0:14:28.640 --> 0:14:31.360 so the four methods. First of all, the reason that 0:14:31.440 --> 0:14:33.640 you haven't heard about them is that we haven't had 0:14:33.640 --> 0:14:36.200 a goal of restoring the climate yet. These have all 0:14:36.240 --> 0:14:40.480 been around for quite a while. UM ocean pastor restoration 0:14:40.840 --> 0:14:45.720 also called ocean iron fertilization. It is this the same 0:14:45.760 --> 0:14:50.320 process that nature uses to uh to cool the planet 0:14:50.440 --> 0:14:54.240 before ice ages, and so nature removes a trillion tons 0:14:54.240 --> 0:14:57.360 of CEO two before for each ice age. There have 0:14:57.440 --> 0:15:00.640 been ten in the last million years, and we know 0:15:00.640 --> 0:15:03.760 how to do the same thing. And the idea is, uh, 0:15:04.080 --> 0:15:08.440 we all know that photosynthesis, like trees, absorbed c O two. 0:15:08.640 --> 0:15:10.880 But the trouble with trees, of course, is that they 0:15:10.920 --> 0:15:13.720 end up dying after a few decades and the carbon 0:15:13.800 --> 0:15:16.520 goes back into the air when the trees rock in 0:15:16.560 --> 0:15:20.480 the ocean. When plants grow, they sink and so and 0:15:20.520 --> 0:15:23.400 then there's no oxygen in the deep ocean, and so 0:15:23.480 --> 0:15:26.640 the carbon. They take the carbon with them as they 0:15:26.880 --> 0:15:28.640 and of course a lot of the plants are eaten 0:15:28.680 --> 0:15:32.320 by fish and all the detritus sinks into the deep ocean. 0:15:32.880 --> 0:15:37.160 And as I said, that's how nature uh cool the 0:15:37.160 --> 0:15:40.520 planet for our ice ages. And so the way this operates, 0:15:40.880 --> 0:15:44.040 and it was tested ten years ago. It was tested 0:15:44.080 --> 0:15:51.560 also by mont Pinitubo thirty years ago. Um is uh local, 0:15:51.760 --> 0:15:56.000 it's localized, and it's intermittent. So you do it. They 0:15:56.040 --> 0:15:58.960 do it in eddies which are about a hundred miles 0:15:58.960 --> 0:16:02.720 in diameter in the ocean. And uh, the eddie contains 0:16:02.760 --> 0:16:06.000 the iron. The iron is phenomenally small amount. It's like 0:16:06.040 --> 0:16:10.600 a hundredth of a teaspoon per square meter. And um, 0:16:10.640 --> 0:16:14.480 within days it turns green from blue. Blue is beautiful, 0:16:14.480 --> 0:16:17.160 but it's not green. Green is where you have photosynthesis. 0:16:17.560 --> 0:16:21.480 And then within another week or so fish start coming 0:16:21.480 --> 0:16:25.960 in and feeding on there on the the luncheon counter there, 0:16:26.760 --> 0:16:30.240 uh and and off you go. When it was tested 0:16:30.280 --> 0:16:33.360 they were told that they just a question of a 0:16:33.480 --> 0:16:36.480 hundred million tons of CEO two. That sounds like a 0:16:36.520 --> 0:16:40.960 lot what's interesting is, you know, and we're gonna continue 0:16:40.960 --> 0:16:42.840 the conversation just a moment and maybe talk about some 0:16:42.880 --> 0:16:44.480 of the other methods and just got about a minute 0:16:44.520 --> 0:16:46.280 here and then we'll continue on the other side of 0:16:46.320 --> 0:16:49.120 the break. But I do wonder at the same time, 0:16:49.240 --> 0:16:52.360 do we not also though you need to think about 0:16:52.360 --> 0:16:57.840 reducing our carbon footprint? Yes, we absolutely do? Well, yes 0:16:57.920 --> 0:17:00.760 or no, that we we need to reduce our carbon footprint. 0:17:00.760 --> 0:17:03.800 Worrying is really less effective than doing it, and so 0:17:03.960 --> 0:17:07.000 I focus on just do it. Uh. You know, I'm 0:17:07.000 --> 0:17:09.320 planning to have an electric car be my next car 0:17:09.359 --> 0:17:12.879 when my current car wears out, and I think probably 0:17:12.880 --> 0:17:15.320 a lot of the people listening are already planning on that, 0:17:15.880 --> 0:17:20.080 so that transition is happening, but we haven't been thinking 0:17:20.119 --> 0:17:24.480 about actually restoring the climate. And especially for our young listeners, 0:17:25.400 --> 0:17:29.160 plan on being around rather than giving up the ghosts, 0:17:29.200 --> 0:17:31.080 because if you plan on being around, then you'll pay 0:17:31.080 --> 0:17:34.040 attention to these big four solutions. And I want to 0:17:34.080 --> 0:17:37.840 continue with that and talk seaweed permaculture and exactly what 0:17:37.880 --> 0:17:41.560 it is and how it gets carbon out of the ecosystem. Yeah, 0:17:41.720 --> 0:17:48.160 seaweed perma culture is a variation on on the iron fertilization. 0:17:48.400 --> 0:17:53.000 So as I said, Uh, the important thing in the 0:17:53.040 --> 0:17:56.359 ocean is when you grow plants, when they die, they 0:17:56.400 --> 0:17:59.439 sink is no oxygen and the oxygen stays out. And 0:17:59.560 --> 0:18:03.000 with sea permaculture, the for the nutrients that are missing 0:18:03.280 --> 0:18:05.359 are brought up from the deep ocean in a large 0:18:05.400 --> 0:18:09.960 pipe solar powered, takes very very little energy, and then um, 0:18:10.600 --> 0:18:14.440 the seaweed grows. Some of the seaweed is used, is 0:18:14.440 --> 0:18:18.840 actually harvested and sold for products, some of which sell 0:18:18.960 --> 0:18:23.600 for a thousand dollars a ton um. And uh, probably 0:18:23.640 --> 0:18:27.280 half the seaweed ends up falling deep into the ocean. Uh, 0:18:27.320 --> 0:18:29.719 some of it cut, some of it just naturally falling. 0:18:30.400 --> 0:18:34.840 And it's fairly simple. The difficulty is you've got they 0:18:34.880 --> 0:18:40.040 build a structure that this the help grows on and 0:18:40.040 --> 0:18:44.200 and that takes some technology. But just like the the 0:18:44.240 --> 0:18:49.280 iron fertilization, it's that's a commercial product, and so so 0:18:49.760 --> 0:18:52.560 it pays for itself a peter you spent it. It's 0:18:52.560 --> 0:18:56.040 a commercial product. Let's talk an end there, because I'm wondering, 0:18:56.080 --> 0:18:59.000 if this is so effective, where's the money in it? 0:18:59.040 --> 0:19:01.399 And I asked in the you know, the question not 0:19:01.480 --> 0:19:03.879 in a cynical way, but in a way that motivates 0:19:03.880 --> 0:19:06.520 companies to do this to make sure that we have 0:19:06.560 --> 0:19:12.719 a future. Yes, it's an interesting challenge because uh you know, 0:19:12.760 --> 0:19:17.440 of the we have are the four pathways, and they're 0:19:17.480 --> 0:19:21.600 all self financing. UM and this is the same model 0:19:21.680 --> 0:19:25.040 that put a c O two into the air. That is, 0:19:25.240 --> 0:19:28.240 we had companies selling us heat and energy which had 0:19:28.280 --> 0:19:33.840 a byproduct putting CEO two. Up with these four products, 0:19:33.880 --> 0:19:42.440 the the UH, the seaweed, the limestone, the ocean fertilization 0:19:42.480 --> 0:19:44.800 which leads to fish. You get product which has a 0:19:44.880 --> 0:19:49.120 byproduct of pulling CEO two out. Right now, the challenge 0:19:49.160 --> 0:19:51.800 is UM and this is something that we're dealing with 0:19:51.920 --> 0:19:55.080 right now, is we're afraid to list these on the 0:19:55.240 --> 0:19:57.800 on the open market because the customers I can say, 0:19:57.840 --> 0:20:01.440 wait a minute, my U retirement depends on it. And 0:20:02.000 --> 0:20:04.240 so we want to make sure that people doing this 0:20:04.560 --> 0:20:09.280 are primarily interested in restoring the climate for our children 0:20:09.359 --> 0:20:12.479 and grandchildren a second really interested in making money. Well, 0:20:12.520 --> 0:20:14.640 it almost sounds like you've got to have governments involved 0:20:15.480 --> 0:20:19.439 who recognize these methods and before it gets too late. 0:20:19.480 --> 0:20:22.719 Peter Fakowski, thank you so much. Founder uh In Germany, 0:20:22.800 --> 0:20:25.400 Meritus a foundation for climate restoration. Check out his book 0:20:25.440 --> 0:20:28.199 that has got the title of climate restoration in it. 0:20:28.880 --> 0:20:36.119 I'm roc journal. Yeah, but you let me drive? Oh no, 0:20:36.119 --> 0:20:44.159 no, no no home leave, I'll do. I want to drive. 0:20:45.080 --> 0:20:51.080 It's good question to drive. This is the drive to 0:20:51.160 --> 0:20:57.080 the globe coming down on Bluebird Radio. All right, everybody, 0:20:57.119 --> 0:21:01.080 tick talk just about tidn't happen. It's left in today's 0:21:01.080 --> 0:21:03.119 trading sessions and we are getting ready to wrap up 0:21:03.119 --> 0:21:06.760 the day, wrap up the week. It's been a trade 0:21:06.880 --> 0:21:08.880 wrap up the month, and we know it's been an 0:21:08.960 --> 0:21:11.520 unbelievable one for equities. Ever. All yeah, it's been pretty 0:21:11.520 --> 0:21:13.440 remarkable for the S and p F foundered up eight 0:21:13.480 --> 0:21:17.199 point three percent this month. The nasdak uh can posit 0:21:17.280 --> 0:21:20.600 up eleven percent this month. Still not positive for the year, 0:21:20.680 --> 0:21:23.240 but what a difference just a month. Makes really curious 0:21:23.240 --> 0:21:24.800 to hear what Jimmy Lee has to think about it. 0:21:24.800 --> 0:21:26.760 He's the founder and CEO of the Wealth Consulting Group. 0:21:26.800 --> 0:21:29.320 They've got two point nine billion dollars in assets under management, 0:21:29.320 --> 0:21:31.080 and I would imagine after a rally in the last 0:21:31.119 --> 0:21:32.960 couple of days that number has gone up a little 0:21:33.000 --> 0:21:35.960 bit Jimmy joining us on the phone from Las Vegas. Jimmy, 0:21:35.960 --> 0:21:40.160 how are you? I'm great and good afternoon. Yeah, good 0:21:40.160 --> 0:21:42.320 afternoon to YouTube. So the big question that that Carol 0:21:42.359 --> 0:21:44.439 and I have been asking each other off air and 0:21:44.480 --> 0:21:46.479 asking our guests on air has been is this is 0:21:46.520 --> 0:21:48.439 just a bear market rally because we're getting so much 0:21:48.480 --> 0:21:53.080 conflicting data here. Well, I'm a little surprised that we've 0:21:53.080 --> 0:21:56.119 had such a strong run with equities. You're not the 0:21:56.160 --> 0:22:00.119 only one, yeah, without having a better inflation pread at 0:22:00.200 --> 0:22:03.880 least one. But as I've been saying for the last 0:22:03.920 --> 0:22:05.800 few months, I think that we could be in for 0:22:05.840 --> 0:22:08.240 a strong fourth quarter. It looks like we're getting it 0:22:08.240 --> 0:22:11.200 a little bit earlier. So what I think has changed 0:22:11.520 --> 0:22:14.719 is that maybe while the consumer sentiment is still awful, 0:22:14.960 --> 0:22:18.280 just horrible, I think investor sentiment may have changed, and 0:22:18.320 --> 0:22:20.919 maybe instead of selling into the rallies, it's gonna be 0:22:20.960 --> 0:22:24.040 more about buying into the dips Again, who do you 0:22:24.080 --> 0:22:28.400 believe consumers are investors? And some of the economic data 0:22:28.440 --> 0:22:30.479 points I will point out that we've talked about certainly 0:22:30.480 --> 0:22:33.680 today are Michael McKee, who follows a global economics says, 0:22:33.720 --> 0:22:35.200 you know a lot of the state is backward looking. 0:22:35.280 --> 0:22:38.080 You have to remember that markets tend to be forward looking. 0:22:38.119 --> 0:22:40.240 So I'm just curious when you look at it. And 0:22:40.240 --> 0:22:42.199 then let's throw the bond market into it. You know, 0:22:42.240 --> 0:22:45.720 that tenure, I feel like comfortably staying below that three mark. 0:22:45.760 --> 0:22:50.440 I mean, how do you kind of you know, size 0:22:50.480 --> 0:22:55.240 each of them against one another. It's very confusing, and 0:22:55.400 --> 0:22:58.359 especially with the bond market. But I think that the 0:22:58.359 --> 0:23:02.520 consumer is still strong. I think in certain areas of 0:23:02.560 --> 0:23:06.080 the economy, such as housing, other areas have been you 0:23:06.119 --> 0:23:07.800 know that we're just bit up so high. I think 0:23:07.840 --> 0:23:11.480 obviously we're seeing uh pullbacks there, which is great. I 0:23:11.480 --> 0:23:13.919 think it's healthier to get that in some of these 0:23:13.920 --> 0:23:16.880 sectors that were so hot. But you know, I think 0:23:16.880 --> 0:23:20.639 that again, I've been talking about record cash balances with 0:23:20.720 --> 0:23:23.159 the consumer, which we know makes up the majority of 0:23:23.160 --> 0:23:24.680 our U S economy, And so as long as the 0:23:24.680 --> 0:23:28.719