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Music usually sets the mood.

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That was Richmond North of Richmond by Oliver Anthony.

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And the line in it that I think resonates very well is,

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your dollar ain't shit and it's taxed no end.

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And today we're going to talk about how nations are able to do that,

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how they're able to confiscate your wealth,

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make you poor while making you think you're rich,

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and how they're able to control populations by controlling money.

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So today we're here to talk about inflation.

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We're going to have a quick review of what we talked about last time.

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Before we do that, quick show of hands,

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how many of you believe that Bitcoin is the most powerful innovation

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that you have ever seen in your lifetime?

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Okay, so we're doing pretty good.

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We're doing pretty good.

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There's a couple of people yet to go.

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Everyone is either a current or future Bitcoin maximalist or believer.

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The saying goes that you will come to understand Bitcoin when you feel enough pain.

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And some of you just haven't felt enough pain yet.

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So quick review of what money is.

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That was that was last week.

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So let's have a quick review.

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So money.

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Money is a social contract. It's a social contract much in the way that this handshake is a social contract, much in the way that IOU is a social contract.

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But we weren't able to scale that. Because we cannot scale handshakes and we cannot scale verbal promises, we needed to have something that we agreed had value that we could pass in between us to represent that value.

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money enabled specialization because we had a non-material good that we could pass between us

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that meant that i could become an eye surgeon and i could still pay for a hamburger

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because otherwise i'd have to trade you one ninety second of an eye surgery to get my hamburger

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or if i was a horse trainer i would have to train you trade you three hours worth of horse training

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to make my car payment. We're able to specialize because we have money. Understand that money is

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the birth spring of civilization. Without it, we would still be operating on barter system,

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handing each other bananas for coconuts. We would not have F1. We would not have Xbox.

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We would not have air conditioning. Money is the solution to the non-coincidence of wants.

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That's the thing where you have something I want, but I don't have something you want.

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And therefore, we need to have that thing to pass between us.

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We're looking at money through the framework of technology.

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It is a technology that continues to evolve.

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So we started with rocks, seashells, tobacco, cattle, salt, gold, silver,

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Worthless pieces of paper.

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And we keep moving into different domains.

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So we need to view it as a technology.

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And the rule that we have to keep in mind when thinking about technology

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is that technology does not negotiate.

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You adopt it or it kills you.

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If you had the horse taxis back in the 1800s and the car came out

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and you chose to keep operating your horse taxi, you went broke.

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If you were a milk delivery man when the refrigerator came out and you chose to keep lugging around milk, you went broke.

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We have to adopt new technologies or we will be destroyed, left behind.

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China has the example of the hundred years of shame when they decided that they were going to stick with silver while the rest of the world went with gold.

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money is an accounting system and it tracks the amount of work that you do that is valued by

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society one second it means that we have a scorecard and that scorecard is representative

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of the value that we give to the world that value can be passed down you can inherit it

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You can find it.

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But it is an accounting system.

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And at its core, money is what you trade your energy and your time for.

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Energy divided by time is power.

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Money is power.

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If you can control the money, you control the power.

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If you control the power, you control the people.

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Money has four purposes.

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We use it to store that value, to store our power.

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Think of a battery.

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if I charge that battery with one day's worth of work,

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I want to be able to, in two days, two years, two decades,

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trade one day's worth of work for the same or more than I'm able to trade it for now.

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So if my battery leaks power, then I'm going to lose that.

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Inflation is a leakage of power.

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money is the unit of account by which we measure everything that has value much like a meter is the

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unit of account by which we measure height much like the kilogram is a unit of account by which

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we measure weight it's the medium of exchange it's just the thing we agree is money and it's also

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the means of payment it's how we exchange it is it a check is it a credit card is it cash

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Is it something solid? Money has characteristics that make it worthwhile.

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Those characteristics are being able to divide it and reconstitute it.

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Durability means it lasts through time without decaying and breaking down.

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It's immutable, which means you can't go back in time and change it.

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It's incorruptible, which means that you can't just seize somebody's if you want it.

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It needs to be scarce, because if it's not scarce, then it's useless as a unit of account, because that's the thing that needs to stay constant.

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It needs to be uniform, which means that we all need to recognize when we see it that this is money.

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It needs to be acceptable, which means that not only do we see that it's money, we will take it in exchange.

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It needs to be verifiable so that we can tell that it's not fake.

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It should be private because we don't want all of our transactions to be public.

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And it needs to be portable because in case we need to flee, we want to be able to take our money with us.

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So there's the background on the money.

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That's kind of the base case that we're looking with.

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We're starting out today.

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Recognize that money is a technology.

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Technology does not negotiate.

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What I'm trying to do is make the case that Bitcoin is the innovation, the advancement in technology for money, that much like the refrigerator, much like fire, much like the Internet, is something that we either adopt or we get left behind.

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So here we're going to talk about inflation.

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because inflation is kind of the evil thing that has lied within every money that we've ever had.

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What is inflation?

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Most of us think of inflation as CPI, consumer price index.

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Prices go up.

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We think of it as a percentage.

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We think of it as, oh, prices went up 4%.

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So that means that I have to make 4% more in order to live.

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But the first misunderstanding of CPI is that it's not static.

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It's a vector, which means that it's a direction.

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So if it's 4% here and it stays 4%, it goes up, it goes up, it goes up,

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and eventually it becomes parabolic.

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Because any time we have any sort of increase in monetary supply,

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it's only a matter of time before we have so much money

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that it becomes effectively useless and effectively valueless.

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What a government would like you to believe money is,

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is a basket of goods.

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Here's your house.

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Here's your car.

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Here's your movie.

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Here's your steak.

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It's the things that we consume.

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But this is a lie

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because we cherry pick what goes in here.

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Think about the basket of goods that we have today.

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For your movie, it's a Netflix subscription.

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For your house, it's a 150 square meter apartment.

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For your clothes, it's buying cheap stuff off Amazon.

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for your food it's a McDonald's

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now let's compare that to what a basket would look like in the 1920s

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so in the 20s all of your clothes were handmade

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they were all made of natural fiber

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all of your food was organic

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when you went to go watch a movie, you went to go watch a movie and you had an experience.

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We've priced the experience out of it. So we can't compare these things because they're not

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the same. And they keep going down in value in terms of what the experience is.

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my steak that I have had in 1920 was organic. It was natural. It was farm raised. It was grass fed.

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It didn't have antibiotics. If you want to buy that same steak today, the one that's got all

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the junk in it costs you about $12 a pound. The one that doesn't cost you about 80, right? And so

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it's gone exponentially higher in order to have the same basket of goods. So that's not what

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inflation is. Inflation, by definition, is an increase in the supply of money.

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That's what inflation is. And inflation ripples throughout society because when we increase

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the supply of money, remember, all the money always equals all the stuff. This is the unit

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of account by which we compare everything and we offer it a price. Money is the most

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complex unit of account because you can measure, you can't measure things individually. I can

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measure how tall Jack is with a meter stick and it doesn't affect how tall Rami is. But if I want

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to measure how much a hamburger costs, I have to take into account how much a Bugatti costs

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and how much land in El Salvador costs and how much it costs to put a rocket ship into orbit

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because everything is relative to what money is.

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It has to measure everything at once, right?

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So it's the most difficult unit of account to have

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because in order for things to be relative here,

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this cannot change.

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If this changes, all of this changes.

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Yeah?

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The argument that the supply of stuff grows 30%.

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Yeah, so we're going to talk about that right now, actually.

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Yeah, so our thought process goes like this.

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I buy a house for $100,000.

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Ten years later, that same house costs $300,000.

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I didn't make any money.

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the thing that I used to value the house got three times less valuable, right?

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It's the same house.

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Arguably, it's in far worse condition because it's aged 10 years.

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It's organic.

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It's falling apart.

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And we're losing our ability to measure.

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So right now what we have is an ever-expanding money,

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and we have ever-expanding stuff.

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And shockingly, even though in the last century we have developed nuclear technology, we've

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developed jet flight, we've developed the internet, we have uncoded the genome, all of these incredible

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advancements in technology, shockingly, the supply of money has expanded more than technology

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has been able to decrease prices.

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Because technology allows you to do more with less.

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And so what should happen?

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What should happen is that money becomes a barometer which measures the impact of technology on society.

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So if your money is consistent, if it does not change, and technology makes life 5% easier, then prices should go down 5%.

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So you'll experience deflation.

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And during times of strong money, like during the Roman Empire, when they had a fairly strong money for about a thousand years, it was only strong for maybe 700 and then it started to fall apart.

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But during those times, they experienced this.

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They experienced deflation.

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So what we're going to move into in a Bitcoin world is we're going to move into a world where everything gets exponentially cheaper over time.

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Because if 4% makes it get exponentially more expensive, this works both ways.

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If technology makes things 5% cheaper every year, that's also a vector.

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And it gets exponentially cheaper over time.

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This is why the saying is that everything falls to zero against Bitcoin over time.

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Because it's a vector.

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It moves in that direction.

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Has there been any examples of inflation in the last 100 years of currency?

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Yeah.

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Oh, of a currency?

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Yeah.

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You'll see like minor.

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Like when Russia started stocking up on gold after the Ukraine war because the United States put sanctions and started seizing dollar assets, there was a period of time where Russia, the ruble gained a lot of strength relative to the dollar.

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So relatively speaking, yes. But in terms of long term, and we'll get to this with the father of fiat currency, in terms of long term, understand that when you have money, these are gold bars.

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I know they don't look like bars, but they're gold bars.

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And what we do is we take these gold bars and we issue dollars on top of them.

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And when we issue more dollars than we have gold bars, that's like us playing, what's the game where you have chairs and you pull one out each time, right?

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Musical chairs, right?

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So when the music stops, and when the music stops in terms of economy, that means when the interest rate gets high enough that people stop spending money and they start saving money when they hold it.

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When people decide to hold it, that's like trying to sit down while playing musical chairs, and now there aren't enough chairs.

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So understand that any time that you issue more money than you have gold or silver, whatever it is to back it, that money will die.

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There's no going back from that.

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The second that you issue more money than you can back, than you can give back, it's over.

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4,000 fiat currencies have existed.

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3,840 of them are dead.

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Of the 160 that are left, everyone is down 99% from its original value.

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This is a feature of the system.

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It is not a bug.

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This is how it was designed.

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I have eight cookies, and I tell nine friends they can have a cookie.

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Somebody goes hungry, right?

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The current system is modeled on trust.

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The trust is that not everyone will want to take their money out at the same time.

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That trust always fails.

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It's failed in the United States in the 30s.

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They had what was called the bank holiday, where for a period of about two weeks, you were unable to withdraw any funds unless you happen to be a friend of somebody powerful.

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It happened in 1971 when the United States closed the gold window after Germany asked for their gold back.

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and they said this is a temporary closing of the gold window.

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We're not going to redeem gold for dollars for a short period of time.

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It's been 54 years.

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Short period is relative when it comes to governments.

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So we understand this, right?

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Do we understand that money has to stay consistent because it's a unit of account.

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It's a standard.

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All of the money, it doesn't matter how much it is.

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It can be one money.

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It can be a billion monies.

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It doesn't matter.

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As long as it has these characteristics where you can do all these things with it, any amount of money will suffice to serve any size of economy until you start messing with the supply.

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So one of the things that I want to hope, I hope that during the course of these talks that you have a change of perspective.

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And a change of perspective is really hard because perspective is the thing that you don't know you have until it changes, right?

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You look into the wormhole, you look into the rabbit hole, and you see something different, and now you'll never be able to unsee it.

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So here's three numbers.

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Zero, one, and infinity.

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So can we say that the difference between 0 and 1 is bigger or smaller than the difference between 1 and infinity?

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It's bigger.

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00:21:09,040 --> 00:21:10,440
The difference between 0 and 1?

227
00:21:11,440 --> 00:21:12,420
Which one's bigger?

228
00:21:13,020 --> 00:21:13,600
0 to 1.

229
00:21:13,600 --> 00:21:15,760
0 to 1 is bigger than 1 to infinity.

230
00:21:16,500 --> 00:21:19,540
But this includes more infinities, right?

231
00:21:19,540 --> 00:21:21,580
This is infinity in between here.

232
00:21:22,040 --> 00:21:26,380
and then there's infinities, infinities, infinities, infinities.

233
00:21:26,460 --> 00:21:29,020
There's infinities, and then there's bigger infinities.

234
00:21:29,240 --> 00:21:30,400
Zero to one's an infinity.

235
00:21:30,620 --> 00:21:35,720
Zero to two is including of the zero to one infinity and another infinity, right?

236
00:21:35,740 --> 00:21:36,220
So it's bigger.

237
00:21:37,140 --> 00:21:39,820
So in actual terms, this is bigger.

238
00:21:41,660 --> 00:21:43,820
But when it comes to money,

239
00:21:45,520 --> 00:21:51,020
what I want you to understand is that the delta,

240
00:21:52,040 --> 00:22:09,680
The difference between zero and one is greater than the delta between, you can even write it like this, 0.0 to the n1 to infinity.

241
00:22:13,420 --> 00:22:15,120
In terms of inflation.

242
00:22:15,120 --> 00:22:24,400
And the reason being is that here we go from nothing to something.

243
00:22:26,960 --> 00:22:33,600
And here we just have something and a bigger something.

244
00:22:33,600 --> 00:22:50,540
If we expand the supply of money by 1% per year, in 72 years, you lose half your value.

245
00:22:52,820 --> 00:22:59,000
If you expand it by 0% per year, it'll last for infinity.

246
00:22:59,000 --> 00:23:22,400
So the difference being is that if you have an inflation rate that is an integer, that is a real number, that is not zero, the difference between an inflation rate of 1, an inflation rate of 10, and an inflation rate of 10,000, it's just a matter of time.

247
00:23:22,400 --> 00:23:29,900
It only becomes a matter of time before that money becomes so worthless that you cannot use it.

248
00:23:30,960 --> 00:23:35,640
But if your inflation rate is zero, that money can last forever.

249
00:23:36,540 --> 00:23:37,680
Does that make sense?

250
00:23:41,160 --> 00:23:45,660
Yeah, it's just a category, right?

251
00:23:45,780 --> 00:23:49,320
It's a category of inflation at all.

252
00:23:49,940 --> 00:23:51,300
It's a matter of time.

253
00:23:51,780 --> 00:23:52,540
No inflation.

254
00:23:53,180 --> 00:23:54,080
It can last forever.

255
00:23:54,680 --> 00:23:57,820
And no inflation means that it will act as a metric.

256
00:23:57,820 --> 00:24:05,000
It will act as a barometer that gauges the technological increase, the technological progress of humanity.

257
00:24:06,680 --> 00:24:10,340
And by the way, this is really, I don't know if I have the picture.

258
00:24:11,600 --> 00:24:13,180
Well, this is very easy.

259
00:24:14,340 --> 00:24:15,060
Take a house.

260
00:24:15,960 --> 00:24:17,580
Take a house 10 years ago.

261
00:24:17,700 --> 00:24:19,240
It cost you probably 300 Bitcoin.

262
00:24:19,920 --> 00:24:21,000
Take a house today.

263
00:24:21,000 --> 00:24:24,700
it costs you about three. Keep going.

264
00:24:25,460 --> 00:24:28,660
Ten years, it'll probably cost you .3.

265
00:24:29,540 --> 00:24:33,400
Twenty years, it'll probably cost you .03.

266
00:24:34,300 --> 00:24:35,200
Something like that.

267
00:24:37,040 --> 00:24:40,620
Why is that, though? Why is this?

268
00:24:40,720 --> 00:24:42,720
So let's talk about what markets are.

269
00:24:44,880 --> 00:24:47,340
Because all the stuff

270
00:24:51,000 --> 00:25:00,000
So we've got all the stuff, goods and services, et cetera, et cetera, right?

271
00:25:01,180 --> 00:25:09,620
And the stuff becomes available to us because we have a market for that stuff, right?

272
00:25:09,760 --> 00:25:10,740
So we have a market.

273
00:25:12,180 --> 00:25:13,860
And what does market determine?

274
00:25:17,700 --> 00:25:18,880
I come to you.

275
00:25:19,100 --> 00:25:19,920
You come to me.

276
00:25:20,000 --> 00:25:20,800
You're selling something.

277
00:25:20,800 --> 00:25:26,400
I'm buying something. We agree on a price that you'll let it go and I'll buy it, right?

278
00:25:27,480 --> 00:25:35,040
Markets are a clearinghouse. They're a way that we determine value of a thing. And by the way,

279
00:25:35,060 --> 00:25:38,240
the way that I determine the value of that thing is you're coming to clean my house.

280
00:25:39,200 --> 00:25:46,260
You're going to charge me 60 bucks for it. I make 60 bucks an hour. You can clean my house in an

281
00:25:46,260 --> 00:25:51,960
hour and I can give you 60 bucks or I can clean it and it's going to take me three hours. And so

282
00:25:51,960 --> 00:25:57,300
in my head, I'm doing this mental math where I'm like, three hours is worth $180 of my time.

283
00:25:57,300 --> 00:26:03,080
I could just work one hour and then I could trade it to somebody who is

284
00:26:03,080 --> 00:26:07,820
more efficient at producing that good or that service, right?

285
00:26:07,820 --> 00:26:10,920
So what are markets?

286
00:26:11,380 --> 00:26:13,100
Markets determine price.

287
00:26:14,300 --> 00:26:16,320
And what is price?

288
00:26:18,360 --> 00:26:30,420
Price is a signal to producers and consumers.

289
00:26:30,420 --> 00:26:44,220
the signal is if you're a producer of that good and that price is above what it costs you to

290
00:26:44,220 --> 00:26:51,420
produce that good you'll continue producing more of it if that price is below what it costs you to

291
00:26:51,420 --> 00:27:03,380
produce that good, you'll stop producing. Markets have to have a clear signal or else we have

292
00:27:03,380 --> 00:27:08,680
too much of the things we don't need and not enough of the things that we do.

293
00:27:09,800 --> 00:27:17,740
So what can cause an inaccurate price signal? An inaccurate price signal is caused by dumping

294
00:27:17,740 --> 00:27:26,240
money into the system. Because we never equally dump money into the system, right? We bail

295
00:27:26,240 --> 00:27:32,220
out the banking industry, and then that money trickles throughout the rest of society. We

296
00:27:32,220 --> 00:27:47,170
bail out the automobile industry and that money trickles throughout society It not at all times equal across everything right So the price is the signal that determines the supply

297
00:27:53,251 --> 00:28:00,151
So if you have an inaccurate price signal, then your supply will then become inaccurate.

298
00:28:02,731 --> 00:28:09,851
When your money becomes worthless, people seek to store value in things that are not money.

299
00:28:11,411 --> 00:28:11,851
Right?

300
00:28:12,211 --> 00:28:14,211
I used to be an investment advisor.

301
00:28:14,211 --> 00:28:18,211
And when you're an investment advisor, one of the things they teach you is cash is trash.

302
00:28:19,111 --> 00:28:24,211
You do not hang on to cash because it will become more and more worthless over time.

303
00:28:24,391 --> 00:28:29,751
You're not doing your job if you're not finding something that returns more than cash devalues.

304
00:28:29,751 --> 00:28:35,411
so what do you do you buy a house

305
00:28:35,411 --> 00:28:41,371
right because houses go up

306
00:28:41,371 --> 00:28:44,651
or you buy stocks

307
00:28:44,651 --> 00:28:55,271
because stocks go up you buy bonds you buy a racehorse you buy a collectible car

308
00:28:55,271 --> 00:29:00,211
you buy a priceless piece of artwork that isn't priceless because it has a price.

309
00:29:04,911 --> 00:29:10,571
But what happens when the value of houses goes up?

310
00:29:12,711 --> 00:29:19,951
I'm a house builder, and when the cost of a house is $100,000,

311
00:29:20,731 --> 00:29:23,811
I can't be in that market because it cost me $200,000.

312
00:29:25,271 --> 00:29:29,091
But when it costs $300,000, now I can.

313
00:29:30,951 --> 00:29:35,471
So you have new entrants to the market to increase supply.

314
00:29:37,591 --> 00:29:45,151
And when you have more supply, eventually you end up with lots and lots of houses.

315
00:29:45,151 --> 00:29:50,871
and when you have lots and lots of houses,

316
00:29:52,291 --> 00:29:59,371
the fundamental law of supply and demand says that if you oversupply more than there is demand,

317
00:29:59,471 --> 00:30:00,411
then the price will fall.

318
00:30:01,711 --> 00:30:04,351
This is what happened in 2008.

319
00:30:05,411 --> 00:30:13,311
The global financial crisis, ostensibly it was caused by rehypothecating mortgages and all this stuff,

320
00:30:13,311 --> 00:30:18,011
But really, it was caused because people were investing in houses.

321
00:30:18,131 --> 00:30:19,271
A house is not an investment.

322
00:30:20,711 --> 00:30:22,131
A house is the thing that you live.

323
00:30:22,211 --> 00:30:23,551
It has utility value.

324
00:30:24,631 --> 00:30:28,571
So you have the value of the utility of consuming the good that is the home.

325
00:30:30,331 --> 00:30:35,211
But we were also adding on a store of value, an investment value.

326
00:30:35,791 --> 00:30:38,071
And that was what was taking over the industry.

327
00:30:38,071 --> 00:30:42,711
That's why you had people that had 8, 12, 30, 150 houses.

328
00:30:43,311 --> 00:30:45,191
And they didn't own any of them.

329
00:30:45,731 --> 00:30:56,231
They were just taking the house that they bought for $100,000 that was now valued at $200,000 and using that to buy another house and then using that to buy another house and another house and another house.

330
00:30:56,251 --> 00:31:00,031
And it keeps going and going and going until it pops.

331
00:31:00,851 --> 00:31:01,951
That's the bubble popping.

332
00:31:01,951 --> 00:31:03,491
I think that was that good.

333
00:31:03,831 --> 00:31:04,751
I'm not going to say that I did something.

334
00:31:05,231 --> 00:31:07,871
If the economy goes the way you're saying,

335
00:31:08,511 --> 00:31:10,371
BTC is the only thing that's going on.

336
00:31:10,731 --> 00:31:11,911
Do you like an empty economy?

337
00:31:12,031 --> 00:31:13,471
Because we don't want to buy houses.

338
00:31:13,930 --> 00:31:15,271
We don't want to spend our money.

339
00:31:15,451 --> 00:31:16,411
We don't want to hang on to it.

340
00:31:16,871 --> 00:31:21,031
Maybe the economy will just suck into a really small size.

341
00:31:21,231 --> 00:31:21,531
No, no.

342
00:31:21,731 --> 00:31:26,991
So what will happen is that prices will actually fall to the utility value.

343
00:31:27,491 --> 00:31:30,751
You've got a house right now, and it has two values.

344
00:31:31,430 --> 00:31:36,171
It has the utility value, and it has the investment value.

345
00:31:37,131 --> 00:31:38,531
A house is a shitty investment.

346
00:31:39,171 --> 00:31:40,411
Why is it a shitty investment?

347
00:31:40,551 --> 00:31:42,971
It's because I can inflate the supply of houses at will.

348
00:31:43,771 --> 00:31:45,811
Anytime I want more houses, I can build more houses.

349
00:31:46,691 --> 00:31:48,231
Real estate's a shitty investment.

350
00:31:49,771 --> 00:31:52,091
We're standing on a fake island.

351
00:31:52,771 --> 00:31:56,431
If you want more land and the price is high enough, you can make more land.

352
00:31:56,691 --> 00:31:59,991
And so the price sends a signal to increase supply.

353
00:32:00,751 --> 00:32:05,851
So what you're going to see is you're going to see houses fall to their utility value.

354
00:32:06,331 --> 00:32:10,111
You're going to see art fall to its utility value.

355
00:32:10,451 --> 00:32:12,591
Collectible cars fall to their utility value.

356
00:32:14,091 --> 00:32:16,011
Gold fall to its utility value.

357
00:32:16,011 --> 00:32:24,371
The best estimate is that gold's value is 90% investment value and 10% utility.

358
00:32:24,371 --> 00:32:29,171
So even the gold is going up in price.

359
00:32:31,691 --> 00:32:44,791
When we realize that it's nowhere near as good as being money as Bitcoin, it's going to fall to its utility value, which is as an insulator or not as a conductor and as jewelry.

360
00:32:45,371 --> 00:32:48,651
And the value of that is much, much, much, much, much lower.

361
00:32:48,651 --> 00:32:52,671
So we see that we will have things fall to their utility.

362
00:32:52,671 --> 00:32:56,111
Just like a soda has a utility value, right?

363
00:32:56,171 --> 00:32:57,551
It's whatever utility, whatever.

364
00:32:58,251 --> 00:33:00,431
In economics, we measure this in what's called utils.

365
00:33:01,831 --> 00:33:09,711
It just means how much joy, how much utility do I get out of this thing?

366
00:33:10,931 --> 00:33:13,931
And by the way, that creates this really interesting thing.

367
00:33:14,011 --> 00:33:17,451
This is kind of a side part, but it creates what's called the paradox of choice.

368
00:33:17,451 --> 00:33:25,951
the paradox of choice is that the more choices that you have the less utility the less enjoyment

369
00:33:25,951 --> 00:33:33,051
you get from making that final choice if i offer you a candy bar and you like candy bars

370
00:33:33,051 --> 00:33:39,851
and the alternative is that you don't get a candy bar you're really happy to get that candy bar

371
00:33:39,851 --> 00:33:46,531
it's going to give you a hundred utils of enjoyment if i offer you your favorite candy bar

372
00:33:46,531 --> 00:33:52,051
that gives you 100 utils of enjoyment and your second favorite candy bar that gives you 80 utils

373
00:33:52,051 --> 00:33:57,871
of enjoyment, you're now making a decision where the final will be, you're still going to choose

374
00:33:57,871 --> 00:34:03,571
this one, but you're only 20% more happy. This is why online dating is ruining relationships

375
00:34:03,571 --> 00:34:10,731
because you have unlimited choice, right? And so if this one doesn't make me happy,

376
00:34:10,811 --> 00:34:14,751
there's one right below it and right below it and right below it and right below it and right below

377
00:34:14,751 --> 00:34:22,111
I can just keep making choices, and none of them are fulfilling because it's always just a little bit better than the last one.

378
00:34:26,971 --> 00:34:27,791
Any questions?

379
00:34:30,311 --> 00:34:30,751
Okay.

380
00:34:32,010 --> 00:34:35,391
I want to push through here a little bit and see what we've got.

381
00:34:36,351 --> 00:34:38,191
So I experienced this, by the way.

382
00:34:38,191 --> 00:34:47,991
This is when I was banking. During the COVID crisis, we shut the economy down.

383
00:34:49,371 --> 00:34:53,550
Shutting the economy down is very similar to shutting the music off when playing musical chairs.

384
00:34:54,991 --> 00:34:59,491
Everybody just held on to their money, right? They couldn't go to the bar, couldn't go to the movies,

385
00:34:59,571 --> 00:35:03,211
they couldn't go to a concert, they couldn't do anything. And so all that money started to just

386
00:35:03,211 --> 00:35:11,411
gathered back. And they realized, oh, this is a problem. Because we stopped the music,

387
00:35:12,071 --> 00:35:15,550
everybody's saving their money. What happens when everybody saves their money?

388
00:35:16,831 --> 00:35:22,311
Is that the economy collapses because I erased it, but there's not enough chairs.

389
00:35:23,151 --> 00:35:29,771
There's not enough chairs for everybody to have their money, right? In order to pay off the debt,

390
00:35:30,351 --> 00:35:37,311
We need people to continue borrowing money because we need to sell them debt at a higher rate than we're paying.

391
00:35:37,451 --> 00:35:39,411
The government's paying 4% for their debt.

392
00:35:39,711 --> 00:35:41,711
You need to pay 7% for your house.

393
00:35:42,550 --> 00:35:44,091
Governments never pay off debt, right?

394
00:35:44,131 --> 00:35:45,651
They just refinance it.

395
00:35:45,651 --> 00:36:12,371
And that's why if you look at a chart of what interest rates look like since 1971 when the U.S. went off the gold standards, interest rate, time, it looks like this.

396
00:36:12,371 --> 00:36:19,231
because we have to keep making the money cheaper in order to incentivize you to use it.

397
00:36:19,271 --> 00:36:21,491
We have to keep making it more trash.

398
00:36:22,891 --> 00:36:26,991
We have to make it so trash that you won't hold on to it at all,

399
00:36:27,131 --> 00:36:29,050
and you'll just live in debt.

400
00:36:30,871 --> 00:36:33,751
We have to do that or else the music stops.

401
00:36:35,371 --> 00:36:39,311
If we're on a hard money standard where it never changes,

402
00:36:39,311 --> 00:36:47,951
what you're going to see is you're going to see an increase in the interest rate over time.

403
00:36:50,331 --> 00:36:57,391
And that increase in the interest rate will be reflective of the progress that technology is adding to the world.

404
00:36:58,351 --> 00:37:06,571
So basically, it's going to be like, at 12%, I might give you my money because I think that you might be able to do something

405
00:37:06,571 --> 00:37:09,071
that is better than hanging on to what I've got.

406
00:37:09,171 --> 00:37:16,251
But the hurdle rate, the hurdle rate is how much is the money increasing in value?

407
00:37:16,991 --> 00:37:19,991
Right now, for Bitcoin, it's like 40%, 50%.

408
00:37:19,991 --> 00:37:24,731
It'll settle out to probably 20% or 30% for a bit.

409
00:37:24,831 --> 00:37:27,571
But then we're going to start getting all of these advantages.

410
00:37:28,511 --> 00:37:34,431
Fusion, AI, robotics, longevity.

411
00:37:34,431 --> 00:37:37,811
and it's going to go parabolic again.

412
00:37:41,071 --> 00:37:45,550
Anyway, so here's how we control things, right,

413
00:37:45,631 --> 00:37:47,111
is we make the money cheaper

414
00:37:47,111 --> 00:37:50,891
and we force you to spend it because it's worth less.

415
00:37:52,871 --> 00:37:57,471
And this is the federal chairman talking on July 30th, 2020.

416
00:37:59,071 --> 00:38:00,311
If I can make it play.

417
00:38:02,030 --> 00:38:02,691
There it is.

418
00:38:02,691 --> 00:38:05,571
We're not even thinking about raising rates.

419
00:38:06,571 --> 00:38:12,151
We're totally focused on providing the economy the support that it will need.

420
00:38:12,210 --> 00:38:17,611
We think that the economy will need highly accommodative monetary policy and the use of our tools for an extension.

421
00:38:17,971 --> 00:38:24,271
So, by the way, highly accommodative monetary policy means that we're going to make a lot of money and we're going to put it into the market.

422
00:38:24,371 --> 00:38:25,931
We're going to create a lot of money out of nothing.

423
00:38:25,931 --> 00:38:36,831
and we're absolutely committed to staying in this until we're very confident that that is no longer needed.

424
00:38:37,231 --> 00:38:43,671
So I wouldn't look for us to be sending signals about cutting back on facilities or anything like that for a very long time.

425
00:38:43,671 --> 00:38:47,911
We're in this until we're well through it.

426
00:38:48,791 --> 00:38:49,971
We're not even thinking of it.

427
00:38:49,971 --> 00:39:08,691
So, and by the way, if you read the stuff from the Fed at the time, what they were saying is that a minimum of two years before we even consider raising rates, because they dropped the rate to zero in order to make the cash trash, to make us spend it, to make us move it around.

428
00:39:08,691 --> 00:39:19,691
and less than two years later, we experienced the most rapid rise in interest rates in history.

429
00:39:21,071 --> 00:39:26,451
And the reason for that was that we dumped all this money into the market. It made everything

430
00:39:26,451 --> 00:39:32,071
worthless. The money was worthless. Therefore, all the stuff costs more. We experienced inflation.

431
00:39:32,071 --> 00:39:37,050
It was killing people. And so how do we cure that? Well, we raised the cost of money

432
00:39:37,050 --> 00:39:40,030
in order to encourage you to save it.

433
00:39:40,471 --> 00:39:42,931
If you save it, then you're less likely to spend it.

434
00:39:43,210 --> 00:39:46,771
If you're less likely to spend it, then you have fewer people competing in the market.

435
00:39:47,991 --> 00:39:49,311
That means less demand.

436
00:39:49,571 --> 00:39:51,251
Less demand means lower prices.

437
00:39:58,931 --> 00:40:03,651
This tweet, I think, very accurately summarizes the situation that we're living in.

438
00:40:03,651 --> 00:40:08,771
So when you earn a dollar, your employer is taxed for paying you.

439
00:40:08,771 --> 00:40:10,071
It's a payroll tax.

440
00:40:10,791 --> 00:40:12,951
You get taxed, income tax.

441
00:40:13,550 --> 00:40:15,710
You spend that dollar, you get sales tax.

442
00:40:16,251 --> 00:40:20,391
If you invest that dollar, then you get capital gains tax.

443
00:40:22,591 --> 00:40:27,451
Even when you hang on to that dollar, you're being taxed because we're increasing the money supply.

444
00:40:28,411 --> 00:40:31,050
So inflation is what's called a hidden tax.

445
00:40:31,050 --> 00:40:37,991
By the way, did any of us vote for any of this?

446
00:40:41,311 --> 00:40:45,030
Like, we all agree that we should pay tax, right?

447
00:40:47,951 --> 00:40:52,791
We only agree that because there's this shame that we've instituted around that.

448
00:40:52,851 --> 00:40:54,751
If you don't pay tax, then you're not a good citizen.

449
00:40:54,751 --> 00:41:00,771
But the way that taxes worked when your money wasn't controlled by the government,

450
00:41:01,050 --> 00:41:03,091
you had your gold.

451
00:41:03,831 --> 00:41:06,271
And they came around, and they came to your door, and they said,

452
00:41:06,331 --> 00:41:08,791
hey, the French are talking shit.

453
00:41:09,651 --> 00:41:10,951
We're going to go beat their ass.

454
00:41:11,991 --> 00:41:12,971
We need some money.

455
00:41:13,991 --> 00:41:14,891
Can we have it?

456
00:41:15,030 --> 00:41:17,331
And you said, all right, damn French.

457
00:41:18,751 --> 00:41:19,691
I'll give you some money.

458
00:41:20,530 --> 00:41:21,951
I'll give you 15%.

459
00:41:21,951 --> 00:41:26,431
And they come back, and they go, the Germans are talking shit.

460
00:41:27,251 --> 00:41:28,231
We need some money.

461
00:41:29,171 --> 00:41:30,351
We're going to go kick their ass.

462
00:41:31,951 --> 00:41:36,571
And then you say, the French just kicked your ass.

463
00:41:37,671 --> 00:41:38,631
Things got worse.

464
00:41:41,411 --> 00:41:42,431
All right, I'll try again.

465
00:41:42,571 --> 00:41:43,251
I'll give you my money.

466
00:41:43,491 --> 00:41:44,671
And then they come back again.

467
00:41:45,210 --> 00:41:47,871
And they say, we got our ass kicked by the Germans and the French.

468
00:41:49,191 --> 00:41:50,971
And now we can't afford to build roads.

469
00:41:50,971 --> 00:41:52,191
We need your money.

470
00:41:55,851 --> 00:41:59,771
And finally, you said, no.

471
00:42:01,991 --> 00:42:06,171
You can't have my money because you're not good at spending it.

472
00:42:06,911 --> 00:42:09,471
And it turns out that maybe the Germans aren't that bad.

473
00:42:10,151 --> 00:42:11,431
Maybe the French aren't that bad.

474
00:42:11,491 --> 00:42:16,491
In fact, I hear stories that they have roads and they have plenty to eat.

475
00:42:18,191 --> 00:42:19,951
Has anybody read The Sovereign Individual?

476
00:42:21,210 --> 00:42:21,451
Okay.

477
00:42:22,191 --> 00:42:27,931
The Sovereign Individual's thesis, very plainly stated, is parts of it.

478
00:42:27,931 --> 00:42:46,951
If the government cannot control the money, if they can't take it without you giving it up, if they actually have to compete for it, what you're going to see is governments as a service competing for your citizenship.

479
00:42:47,751 --> 00:42:48,971
Where are we standing?

480
00:42:49,851 --> 00:42:49,951
Right?

481
00:42:52,351 --> 00:42:55,811
It's from 1996, I believe.

482
00:42:56,851 --> 00:42:57,631
It's insane.

483
00:42:57,931 --> 00:43:04,611
it's incredible. But if they can't take that money, they have to ask for it.

484
00:43:05,571 --> 00:43:10,131
And if they have to ask for it, you have to give it up. And if you have to give it up,

485
00:43:10,171 --> 00:43:15,511
then you have to be giving up something that you feel like is worth more than what you're,

486
00:43:16,011 --> 00:43:18,771
you have to be getting more than what you feel you're giving up.

487
00:43:20,210 --> 00:43:24,171
When you guys pay taxes, do you feel like you're getting more than what you're giving up?

488
00:43:24,171 --> 00:43:26,411
right

489
00:43:26,411 --> 00:43:32,291
if you can no longer unilaterally tax people

490
00:43:32,291 --> 00:43:36,171
not just through stuff that you didn't vote for but through

491
00:43:36,171 --> 00:43:40,210
inflation remember last time we posed

492
00:43:40,210 --> 00:43:44,091
this question if governments can

493
00:43:44,091 --> 00:43:47,851
create more money at will out of nothing

494
00:43:47,851 --> 00:43:51,811
why do they need to tax you

495
00:43:51,811 --> 00:43:58,691
It's just control.

496
00:43:59,811 --> 00:44:01,351
It's just a form of control.

497
00:44:02,351 --> 00:44:03,591
You don't need those taxes.

498
00:44:03,710 --> 00:44:04,951
You don't need my $50.

499
00:44:05,271 --> 00:44:06,291
You can just make $50.

500
00:44:08,131 --> 00:44:10,451
What is the government controlling?

501
00:44:11,731 --> 00:44:13,210
What is the government controlling?

502
00:44:13,210 --> 00:44:15,210
What is the government controlling?

503
00:44:15,210 --> 00:44:17,891
What is the guideline towards?

504
00:44:17,891 --> 00:44:22,111
so

505
00:44:22,111 --> 00:44:31,931
we talked about this i think maybe one class ago but in the 50s and 60s we went through an era of

506
00:44:31,931 --> 00:44:41,231
relative peace after world war ii and we entered the 60s and we entered this time of revolution

507
00:44:41,231 --> 00:44:46,111
Right. Psychedelics expanding, people marching. We don't want to get a war.

508
00:44:47,131 --> 00:44:55,871
There's no use for this. And during that time, I've read a couple of reports and a couple of listening podcasts on this.

509
00:44:56,151 --> 00:45:00,971
There was there's a lot of talk in the government of how do you control the people that is not at war?

510
00:45:01,351 --> 00:45:04,111
How do you keep them from uprising and overtaking?

511
00:45:04,111 --> 00:45:09,451
100%

512
00:45:09,451 --> 00:45:11,231
so fiat money

513
00:45:11,231 --> 00:45:14,291
is backed by what?

514
00:45:15,491 --> 00:45:18,050
what's the United States dollar backed by?

515
00:45:19,351 --> 00:45:19,491
what?

516
00:45:21,731 --> 00:45:24,651
it's backed by the power of the United States military

517
00:45:24,651 --> 00:45:28,531
yeah

518
00:45:28,531 --> 00:45:30,631
if you don't use our money

519
00:45:30,631 --> 00:45:33,771
if you want to go against us

520
00:45:33,771 --> 00:45:40,871
will kill you. Remember, we talked about this before. Your president, what's his name?

521
00:45:41,651 --> 00:45:49,170
Javier Millet. He talked, he broke down after he was elected as president of a country that taxes

522
00:45:49,170 --> 00:45:58,371
his people. And he explained very easily how tax is only enforced by violence. I come to your house

523
00:45:58,371 --> 00:46:05,170
and I say, give me 10% of your money, and you say, and I leave, and I come back, and I say,

524
00:46:05,231 --> 00:46:09,531
give me 10% of your money. Here's a piece of paper, and I signed it, and it says you have to give me

525
00:46:09,531 --> 00:46:17,811
10% of money, and you say, and then I come back, and I say, give me 10% of your money. Here's a

526
00:46:17,811 --> 00:46:24,251
piece of paper. I signed it. Here's a guy with a gun, and now you'll pay, right?

527
00:46:24,251 --> 00:46:28,791
Fiat is enforced only through violence.

528
00:46:29,550 --> 00:46:34,451
If I'm trying to control violence, violence is usually generated by scarcity.

529
00:46:34,811 --> 00:46:41,411
What if the enforcers can make my citizens richer instead of poorer in order to make them happier so they don't grow?

530
00:46:41,891 --> 00:46:42,431
Correct.

531
00:46:42,431 --> 00:46:58,291
But scarcity ensues when you have money that mixes with the market in order to send bad price signals, which affects the supply, which creates scarcity of things that you need and abundance of things that you don't.

532
00:46:59,271 --> 00:47:00,611
I've got a slide here at the end.

533
00:47:00,811 --> 00:47:08,731
It said that the slide is when money is scarce, Bitcoin, when money is scarce, everything is abundant.

534
00:47:08,731 --> 00:47:11,371
When money is abundant, everything is scarce.

535
00:47:12,431 --> 00:47:12,731
Right.

536
00:47:13,731 --> 00:47:14,371
Yeah.

537
00:47:15,011 --> 00:47:16,351
I think one more reason

538
00:47:16,351 --> 00:47:18,251
is that they charge income tax

539
00:47:18,251 --> 00:47:20,611
from people and why there are different slots

540
00:47:20,611 --> 00:47:22,170
for different income taxes

541
00:47:22,170 --> 00:47:24,391
is because if they just, let's say

542
00:47:24,391 --> 00:47:26,670
they didn't have income tax and we kept

543
00:47:26,670 --> 00:47:28,151
bringing more money

544
00:47:28,151 --> 00:47:30,771
to control their spending,

545
00:47:31,631 --> 00:47:32,710
the poorer will have to

546
00:47:32,710 --> 00:47:34,291
keep paying more for each product

547
00:47:34,291 --> 00:47:36,190
as equal

548
00:47:36,190 --> 00:47:38,291
to the people who are rich.

549
00:47:39,050 --> 00:47:39,190
Yeah.

550
00:47:39,190 --> 00:47:47,190
Yeah. Inflation is an unfair, unfair attack on the poor. Absolutely. 100 percent. Because

551
00:47:47,190 --> 00:47:53,011
everybody has a baseline of what they need. They need food and shelter. Right. And when we inflate

552
00:47:53,011 --> 00:47:59,710
the money, which, by the way, we do that way more than we tax people. Right. Way more. Most of our

553
00:47:59,710 --> 00:48:06,291
money comes just from printing. It doesn't come like, again, remember, governments have no money.

554
00:48:06,851 --> 00:48:09,411
It's people's money, and they're taking it, right?

555
00:48:10,251 --> 00:48:12,811
So, yes, you could say that.

556
00:48:13,391 --> 00:48:21,210
You could also say that when I decide to tax Jack, who makes a billion dollars a year, 80% of his wealth,

557
00:48:21,371 --> 00:48:25,210
and I decide to tax you, who makes $50 a year, nothing,

558
00:48:26,151 --> 00:48:31,071
what I'm doing is I am unfairly targeting the person whom society values,

559
00:48:31,071 --> 00:48:37,571
who is providing value to society by doing something that society has deemed is worth value.

560
00:48:38,771 --> 00:48:43,670
And so I'm handicapping him. It's like playing basketball and taking LeBron James and strapping

561
00:48:43,670 --> 00:48:50,710
weights to his legs so that a midget can compete with him, right? That's what these accelerated

562
00:48:50,710 --> 00:48:56,811
tax brackets do, is they hamper people who are productive. And this is why you're seeing the

563
00:48:56,811 --> 00:49:03,951
fleeing of billionaires and millionaires from UK and from California, from all these oppressive

564
00:49:03,951 --> 00:49:11,190
tax regimes to places that are of more fair, more fair tax regimes. Like, look,

565
00:49:11,690 --> 00:49:20,491
fact of life is, if you're more powerful than somebody, then you can do more. And we shouldn't

566
00:49:20,491 --> 00:49:23,651
We shouldn't handicap people for that, right?

567
00:49:24,151 --> 00:49:27,050
We shouldn't make it harder for people who are better.

568
00:49:27,710 --> 00:49:31,031
Because, by the way, it's harder to be better.

569
00:49:31,471 --> 00:49:34,651
Like, it's just already harder to be better, right?

570
00:49:34,991 --> 00:49:41,111
If I'm the best guitar player in the world and you feel bad because you're not the best guitar player in the world,

571
00:49:41,210 --> 00:49:45,451
you're just like, okay, now I have to wear mittens while I play, right?

572
00:49:46,351 --> 00:49:47,931
That's what these tax brackets are.

573
00:49:47,931 --> 00:49:48,611
That's what they do.

574
00:49:50,491 --> 00:49:57,771
One thing about European culture is also just that what you described as that people just provide more value.

575
00:49:58,111 --> 00:50:00,031
For example, we were talking about billionaires.

576
00:50:00,571 --> 00:50:05,351
In Europe, it's like mostly just, okay, let's do some shady thing,

577
00:50:05,351 --> 00:50:11,411
and they're actually just bad people who got that kind of shit and did not buy more value.

578
00:50:11,710 --> 00:50:14,011
Yeah, that's the woke narrative.

579
00:50:14,231 --> 00:50:17,371
What the woke narrative would want you to believe is that they love the poor.

580
00:50:17,491 --> 00:50:19,670
What they actually believe is that they hate the rich.

581
00:50:20,491 --> 00:50:20,731
Right?

582
00:50:21,331 --> 00:50:22,891
Hate never comes from above.

583
00:50:23,331 --> 00:50:24,210
Always remember that.

584
00:50:24,210 --> 00:50:31,771
When somebody's trying to bring you down, trying to hurt your feelings when they're talking trash on you, hate never comes from above.

585
00:50:33,311 --> 00:50:34,471
It's not worth it.

586
00:50:35,091 --> 00:50:49,331
Can we actually measure successful people, wealthy, billionaires who are actually wealthy because of their talent and hard work and not because of some trap that they've done in the system to shortcut that wealth?

587
00:50:49,331 --> 00:50:53,670
I don't know. Maybe you had context.

588
00:50:53,871 --> 00:50:56,071
Maybe you're talking to me and then you're stupid.

589
00:50:56,391 --> 00:51:00,431
So it's 90% of all the billionaires in the world are self-made?

590
00:51:01,690 --> 00:51:02,131
Okay.

591
00:51:04,131 --> 00:51:07,371
If I, in 1950,

592
00:51:08,071 --> 00:51:14,451
if I decide that there's a good way for me to put a basketball into a rim

593
00:51:14,451 --> 00:51:18,851
and I decide that the way I can do that is just by getting very close to it

594
00:51:18,851 --> 00:51:23,331
and jumping up and pushing it through, and I invent the slam dunk?

595
00:51:25,091 --> 00:51:27,651
Have I taken advantage of the rules of the system?

596
00:51:29,190 --> 00:51:29,991
I did.

597
00:51:31,550 --> 00:51:33,431
There's no rules, then there's no advantage.

598
00:51:33,831 --> 00:51:35,531
Don't hate the player, hate the game.

599
00:51:36,190 --> 00:51:36,670
Right?

600
00:51:37,170 --> 00:51:38,251
And what are we doing today?

601
00:51:38,391 --> 00:51:39,451
We hate the players.

602
00:51:40,451 --> 00:51:41,031
Hate the game.

603
00:51:42,231 --> 00:51:43,050
Hate the loopholes.

604
00:51:44,151 --> 00:51:46,911
Remember the, I don't know if you remember this,

605
00:51:46,911 --> 00:51:53,891
maybe you've never seen it, but in 2016, Hillary Clinton and President Trump are debating.

606
00:51:54,670 --> 00:52:01,111
And she says, he doesn't pay his taxes. He's a billionaire. He doesn't pay taxes. And he says,

607
00:52:01,170 --> 00:52:07,651
that's because I'm smart. I'm following the system that you and your cronies created for

608
00:52:07,651 --> 00:52:12,991
yourselves. And you're just mad that I'm using the rules the same way you intended to use them

609
00:52:12,991 --> 00:52:13,531
for yourself.

610
00:52:13,811 --> 00:52:17,031
Are you telling me that Nancy Pelosi is the best trainer in the world?

611
00:52:17,190 --> 00:52:17,891
Her husband is.

612
00:52:18,571 --> 00:52:19,731
It's her husband, remember.

613
00:52:19,911 --> 00:52:20,831
It's not Nancy.

614
00:52:22,071 --> 00:52:22,271
Yeah.

615
00:52:23,071 --> 00:52:24,931
I can't think that was after a question.

616
00:52:25,071 --> 00:52:28,351
The money comes from social services and stuff like that.

617
00:52:28,651 --> 00:52:30,190
How should we manage that?

618
00:52:30,251 --> 00:52:31,331
How should we manage that?

619
00:52:31,431 --> 00:52:32,071
That's a good question.

620
00:52:32,331 --> 00:52:32,991
That's a good question.

621
00:52:33,751 --> 00:52:35,531
How do we think we should manage that?

622
00:52:36,611 --> 00:52:42,131
You know, societies are really, I would say, best measured by how they take

623
00:52:42,131 --> 00:52:49,651
care of the least able to take care of themselves. I was in a youth organization when I was in

624
00:52:49,651 --> 00:52:56,811
high school and college, a youth leadership organization, and we had a motto that we would

625
00:52:56,811 --> 00:53:01,710
say. And the motto is, I believe in less need for charity and more of it when needed.

626
00:53:03,111 --> 00:53:07,951
And so when you ask that question, I would say, I don't accept the premise of your question,

627
00:53:07,951 --> 00:53:14,190
because the premise of your question is based upon believing that these people are incapable, right?

628
00:53:14,751 --> 00:53:16,771
It's believing that these people are incapable.

629
00:53:16,931 --> 00:53:19,731
And I don't think that in the majority of cases that's true.

630
00:53:19,831 --> 00:53:28,351
I think we have a, like, would you agree that there are a lot of people that are perfectly capable of working who do not work and exist on social services, right?

631
00:53:29,411 --> 00:53:31,011
So how do we change that?

632
00:53:31,311 --> 00:53:35,231
This is the discussion that we had with James during one of the Charter City talks.

633
00:53:35,231 --> 00:53:40,291
is that better rules don't make better people, better values do.

634
00:53:41,190 --> 00:53:45,831
So if you have better values, if you instill as a child that you have to work hard,

635
00:53:46,411 --> 00:53:48,611
that you have to overcome things, that you have to do all this stuff,

636
00:53:48,631 --> 00:53:55,371
you have to gain hard skills, then you can end up with a society that supports itself.

637
00:53:55,371 --> 00:54:11,170
So what I would say is that I would argue that it is a case of we need to accept more responsibility for ourselves and that when we do so, then we will have less need for charity.

638
00:54:11,170 --> 00:54:28,951
And if we have, like, the charity that we have today, we saw this with Doge, when Doge came out and exploited all these organizations, you know, $300 billion for, I don't know, infants in Africa, and one million made it there, right?

639
00:54:29,391 --> 00:54:32,190
Most of this stuff is not actually charity.

640
00:54:32,311 --> 00:54:33,831
Most of it's just extortion.

641
00:54:33,831 --> 00:54:37,251
but I think

642
00:54:37,251 --> 00:54:40,231
the way that we provide for those people

643
00:54:40,231 --> 00:54:41,591
is through advancing technology

644
00:54:41,591 --> 00:54:43,931
to provide basic needs

645
00:54:43,931 --> 00:54:47,451
what about normal things in a society

646
00:54:47,451 --> 00:54:49,951
like school, hell

647
00:54:49,951 --> 00:54:51,631
school is free

648
00:54:51,631 --> 00:54:54,371
like the best education in the world is on the internet for free

649
00:54:54,371 --> 00:54:55,611
right

650
00:54:55,611 --> 00:54:57,011
fire department

651
00:54:57,011 --> 00:54:57,631
yeah

652
00:54:57,631 --> 00:55:02,071
so I come from a place

653
00:55:02,071 --> 00:55:03,351
that has a rural fire department

654
00:55:03,351 --> 00:55:05,091
I'm a member of a rural fire department.

655
00:55:05,091 --> 00:55:05,811
I don't get paid.

656
00:55:05,811 --> 00:55:07,151
My dad doesn't get paid.

657
00:55:07,151 --> 00:55:09,751
We all agree that it's worthwhile to have the skill

658
00:55:09,751 --> 00:55:21,841
to know how to fight fires And therefore we all individually contribute some of our time some of our money in order to train because when a fire comes up we want to be able to stop it So that back to self

659
00:55:23,961 --> 00:55:26,741
Other people would like to donate to illnesses

660
00:55:26,741 --> 00:55:30,061
that are behind their families. They could help with the charity.

661
00:55:30,621 --> 00:55:31,941
Yeah, they would, you know...

662
00:55:31,941 --> 00:55:36,141
The most needed charity.

663
00:55:36,141 --> 00:55:39,421
Yeah. And like, understand

664
00:55:39,421 --> 00:55:45,581
that the majority of your wealth has been stolen from you throughout your lifetime.

665
00:55:45,801 --> 00:55:50,881
Right now, you probably have to earn between, based on where you're from, you probably have

666
00:55:50,881 --> 00:55:54,641
to earn between two and ten times as much as you did when you were born just to have

667
00:55:54,641 --> 00:55:56,901
the same level of standard of living.

668
00:55:57,461 --> 00:56:00,361
And that's because you have a money that can be controlled by someone else.

669
00:56:00,361 --> 00:56:07,061
So when we exist in a world that has money that can't be taken, again, I want to try

670
00:56:07,061 --> 00:56:08,101
to change your perspective.

671
00:56:08,101 --> 00:56:13,981
And so I want you to think about this, like think about nuclear power, think about jet planes, think about the Internet, think about all that.

672
00:56:14,341 --> 00:56:16,241
And still a Coke costs three dollars.

673
00:56:17,501 --> 00:56:19,301
And it used to cost five cents.

674
00:56:22,341 --> 00:56:24,761
That's how much of your wealth is stolen from you.

675
00:56:24,761 --> 00:56:31,901
so much so that things cost more despite the fact that we have had more advancement in technology,

676
00:56:32,121 --> 00:56:37,701
more abundance in the last hundred years than we've had in the entirety of human civilization

677
00:56:37,701 --> 00:56:43,281
combined. That's how fast your money is taken away. By the way, flip this chart upside down,

678
00:56:43,281 --> 00:56:47,361
this United States national debt. Flip that chart upside down, and that looks like every

679
00:56:47,361 --> 00:56:57,541
other shit coin that you've ever seen. Everyone. Milton Friedman, one of the most famous economists.

680
00:56:58,541 --> 00:57:05,581
I believe he was a treasury secretary. I can't remember his title. Only government can take

681
00:57:05,581 --> 00:57:09,881
perfectly good paper, cover it with perfectly good ink, and make the combination worthless.

682
00:57:09,881 --> 00:57:13,661
Warren Buffett

683
00:57:13,661 --> 00:57:20,221
the arithmetic makes it plain that inflation is a far more devastating tax

684
00:57:20,221 --> 00:57:23,141
than anything that has been enacted by legislatures

685
00:57:23,141 --> 00:57:29,421
Alan Greenspan, former Federal Reserve Chairman

686
00:57:29,421 --> 00:57:36,101
back in 1966, back before he got the job of creating the fake money

687
00:57:36,101 --> 00:57:40,401
back when he was someone who did legitimate academic work,

688
00:57:41,041 --> 00:57:44,521
back before the United States got off the gold standard.

689
00:57:45,561 --> 00:57:49,221
In 1966, five years before the U.S. left the gold standard,

690
00:57:49,321 --> 00:57:51,101
he said in the absence of gold standard,

691
00:57:51,521 --> 00:57:56,041
there is no way to protect savings from confiscation through inflation.

692
00:57:56,261 --> 00:57:57,901
There is no safe store of value.

693
00:57:57,901 --> 00:57:59,261
It does not exist.

694
00:58:02,261 --> 00:58:03,281
Karl Marx.

695
00:58:03,281 --> 00:58:10,281
owners of capital stimulate the working class to buy more and more. Why? Because you produce

696
00:58:10,281 --> 00:58:17,281
when you have capital. You're able to have means. Unpaid debt will lead to the bankruptcy of banks.

697
00:58:17,521 --> 00:58:23,761
2022, we start to see that just rife through the United States. We had the collapse of Silvergate

698
00:58:23,761 --> 00:58:32,921
Bank. There was probably 40 or 50 mid-level banks that just no longer exist. Billions and

699
00:58:32,921 --> 00:58:37,501
billions and billions of dollars. The unpaid debt will lead to the bankruptcy of banks,

700
00:58:37,521 --> 00:58:42,341
which will have to be nationalized. When we bail out, think, I want you to listen.

701
00:58:42,681 --> 00:58:47,781
When you hear the word bailout, I want you to understand that that means nationalization.

702
00:58:49,821 --> 00:58:56,381
It's a payoff. When the government bailed out the banks in 2008 and all the CEOs got

703
00:58:56,381 --> 00:59:03,161
$100 million bonuses and they left, they're no longer involved. That was their payment

704
00:59:03,161 --> 00:59:09,241
to sell to the government. We now live in a nationalized bank system.

705
00:59:09,801 --> 00:59:15,041
When the automobile industry took the loans from the government, got bailed out, that was the

706
00:59:15,041 --> 00:59:20,541
nationalization of the automobile industry. When you hear bailout, think nationalization.

707
00:59:20,541 --> 00:59:27,021
this eventually leads to communism communism is just we're nationalizing everything right

708
00:59:27,021 --> 00:59:32,141
we'll nationalize the mining industry we'll nationalize the automobile the housing nationalize

709
00:59:32,141 --> 00:59:43,281
food john maynard keens this is the father of the model that we live under this is the guy who

710
00:59:43,281 --> 00:59:49,001
basically created the fiat system that we live under so read this and i want you to realize

711
00:59:49,001 --> 00:59:52,401
you losing your money is a design.

712
00:59:53,221 --> 00:59:54,941
It is not a bug.

713
00:59:55,881 --> 00:59:58,301
By a continuing process of inflation,

714
00:59:58,581 --> 01:00:02,401
governments can confiscate secretly and unobserved

715
01:00:02,401 --> 01:00:05,261
an important part of the wealth of their citizens.

716
01:00:09,381 --> 01:00:11,801
This is another problem that you have with inflation.

717
01:00:12,181 --> 01:00:13,721
This is called shrinkflation.

718
01:00:15,801 --> 01:00:18,861
This is what a Big Mac looked like in 1980.

719
01:00:19,861 --> 01:00:21,741
This is what it looked like in 2024.

720
01:00:24,861 --> 01:00:27,241
This is what a two-by-four looks like today.

721
01:00:28,021 --> 01:00:29,901
This is what it looked like in 1918.

722
01:00:30,281 --> 01:00:32,181
We have some of these back in the man cave.

723
01:00:33,381 --> 01:00:38,061
They are so hard that you cannot drive a nail through them.

724
01:00:39,421 --> 01:00:42,721
When you're buying a house, there's a term that you'll hear.

725
01:00:42,721 --> 01:00:44,301
People say it has good bones.

726
01:00:44,301 --> 01:00:55,061
good bones is slang for it was built with boards like this because this board this is a tree that's

727
01:00:55,061 --> 01:01:00,621
about 15 years old this is a tree that's about 80 years old we allowed it to actually develop and

728
01:01:00,621 --> 01:01:06,961
mature and grow and be strong but now we're selling the same board for 20 times the price

729
01:01:06,961 --> 01:01:13,081
and in reality it's about one-tenth of the actual quality potato chips are like this

730
01:01:13,081 --> 01:01:18,241
because bags of potato chips keep getting bigger and they keep getting less potato chips in them, right?

731
01:01:19,481 --> 01:01:21,461
Shrinkflation, this is a moral hazard.

732
01:01:21,561 --> 01:01:27,181
If you're a wine producer and you make a $20 bottle of wine and all of your costs go up

733
01:01:27,181 --> 01:01:30,141
because now you have to pay more for your land, you have to pay more payroll tax,

734
01:01:30,201 --> 01:01:32,761
you have to pay more and more and more, what are you going to do?

735
01:01:33,941 --> 01:01:35,701
Are you going to keep selling your wine for $20?

736
01:01:36,941 --> 01:01:40,181
Are you going to raise the price to $40 and price yourself out of that market?

737
01:01:40,181 --> 01:01:43,661
or are you just going to add some water to it?

738
01:01:45,461 --> 01:01:48,441
I used to live in a college town and there's like 30 bars.

739
01:01:50,121 --> 01:01:51,401
And bars change hand.

740
01:01:51,441 --> 01:01:55,441
The average bar stays open for about two years before it goes bankrupt

741
01:01:55,441 --> 01:01:57,861
and somebody else buys it and they try again.

742
01:01:58,681 --> 01:02:00,361
Every bar starts out the same way.

743
01:02:01,481 --> 01:02:04,641
Strong Jeeps, strong drinks and they're cheap, right?

744
01:02:06,421 --> 01:02:09,161
And then over time they start watering down their drinks.

745
01:02:10,181 --> 01:02:15,901
and then they realize that they can't compete because there's another bar that has a reputation

746
01:02:15,901 --> 01:02:21,461
for porn, strong drinks, they're cheap. And then they try to do that, and they realize that they

747
01:02:21,461 --> 01:02:28,601
can't because it costs too much, and then they go back front over and over and over and over and

748
01:02:28,601 --> 01:02:33,261
over. When I was front in a band, there was one bar that we played their grand opening and their

749
01:02:33,261 --> 01:02:44,461
grand closing in the same year. All right. I've said this before. How much money is needed to run

750
01:02:44,461 --> 01:02:54,681
the world? It doesn't matter. As long as it has these characteristics, as long as it has those

751
01:02:54,681 --> 01:02:59,761
characteristics, you can run the entire world off of whatever amount of money that you need,

752
01:02:59,761 --> 01:03:05,601
whatever you have. As long as you can divide it, it lasts. As long as you can't change it,

753
01:03:05,661 --> 01:03:09,101
as long as you can't take advantage of it, as long as it doesn't change in supply,

754
01:03:09,521 --> 01:03:15,021
as long as I can recognize what it is, and I will accept it as long as I know that it's true,

755
01:03:15,421 --> 01:03:17,961
as long as it's private, and as long as I can take it with me.

756
01:03:20,841 --> 01:03:25,481
But that's an arbitrary number. It could be 3 million. There's approximately 4 million that

757
01:03:25,481 --> 01:03:29,541
are lost, so there's only 17 million left, and we're just fine with that. There's no problem with

758
01:03:29,541 --> 01:03:41,181
yeah yeah yeah privacy schools like a little bit lower maybe a little bit lower than cash yeah

759
01:03:41,181 --> 01:03:48,761
but it's very easy to make bitcoin private right it's very easy to use mixers and tornado cash and

760
01:03:48,761 --> 01:03:55,741
stuff and you can't stop that like you can make it illegal but you can't stop that just like they

761
01:03:55,741 --> 01:04:01,041
outlawed cars when they first started. Not only did they outlaw cars, they made laws that said

762
01:04:01,041 --> 01:04:07,781
somebody had to walk in front of a car waving a flag. They also said that the car could go no

763
01:04:07,781 --> 01:04:14,241
faster than a horse could walk, right? You have all these stupid laws that come into play,

764
01:04:14,241 --> 01:04:18,941
and soon enough you realize that the technology is so strong that you can't enforce the law.

765
01:04:19,701 --> 01:04:23,661
And Bitcoin's way stronger technology than a car, right?

766
01:04:24,701 --> 01:04:25,741
Cannot stop it.

767
01:04:29,961 --> 01:04:32,241
Remember, all the money always equals all the stuff.

768
01:04:33,241 --> 01:04:37,401
The number that you care about is not the number in your bank account.

769
01:04:37,901 --> 01:04:41,221
The number that you care about is what will that number buy me?

770
01:04:42,821 --> 01:04:47,021
If I have a million dollars, am I rich?

771
01:04:48,941 --> 01:04:53,281
Depends on where you live, right?

772
01:04:54,861 --> 01:04:56,941
What if I have a million dollars in 1920?

773
01:04:57,701 --> 01:04:58,161
Am I rich?

774
01:04:58,561 --> 01:04:58,761
Yeah.

775
01:05:00,041 --> 01:05:02,501
If I have $10,000, am I rich?

776
01:05:05,401 --> 01:05:05,921
In 1920?

777
01:05:07,341 --> 01:05:08,881
In 1700, maybe.

778
01:05:09,881 --> 01:05:12,401
In 2020, I'm poor, right?

779
01:05:13,721 --> 01:05:14,941
It depends where you live.

780
01:05:14,941 --> 01:05:15,261
Yeah.

781
01:05:15,261 --> 01:05:19,701
it's kind of interesting because you say it all depends and all depends and it all depends but

782
01:05:19,701 --> 01:05:26,701
in bitcoin it's one bitcoin is one bitcoin it doesn't change but what changes is what you can

783
01:05:26,701 --> 01:05:34,201
buy with it right what changes is what you can buy with it and it goes one way it goes that way

784
01:05:34,201 --> 01:05:38,181
because it is a barometer for techno technological innovation and progress

785
01:05:38,181 --> 01:05:44,321
when money is abundant goods are scarce

786
01:05:44,321 --> 01:05:48,041
when money is scarce goods are abundant

787
01:05:48,041 --> 01:05:58,801
this part yeah yeah here hold on we'll get there i want to show you

788
01:05:58,801 --> 01:06:07,181
uh we'll skip these and we'll come back okay germany 1923

789
01:06:07,181 --> 01:06:12,901
in 1915 you could exchange 4.2 Deutschmarks and get one dollar

790
01:06:12,901 --> 01:06:18,021
eight years later it took 4.2 trillion dollars

791
01:06:18,021 --> 01:06:26,061
to get one dollar money was everywhere money was abundant in ways that you could not imagine this

792
01:06:26,061 --> 01:06:32,841
is a woman shoving millions of dollars into a furnace to burn it to stay warm

793
01:06:32,841 --> 01:06:37,201
because it's worth less than firewood, right?

794
01:06:37,621 --> 01:06:38,541
Money is abundant.

795
01:06:40,541 --> 01:06:43,601
Goods and services are so scarce that you can't afford to heat your home.

796
01:06:46,281 --> 01:06:49,521
During this time, drinks would go up in bars every hour.

797
01:06:49,661 --> 01:06:53,041
So if you were wise, you would show up and you would pay for all your drinks at the beginning.

798
01:06:53,041 --> 01:06:58,941
the little kid stacking

799
01:06:58,941 --> 01:07:07,301
hundreds of thousands of dollars just playing with money the money's abundant

800
01:07:07,301 --> 01:07:12,881
because they printed it they printed it because they got saddled with these

801
01:07:12,881 --> 01:07:18,941
insane reparations for world war one they couldn't afford it and so they said well

802
01:07:18,941 --> 01:07:27,181
we don't have enough money to pay the debt. We can just make money. And everyone lost everything.

803
01:07:28,881 --> 01:07:37,661
Venezuela. If you made an average income, like a median income in Venezuela in 1980,

804
01:07:38,561 --> 01:07:46,001
about $4,000 a year, based on how much money was created, how much more abundant money became,

805
01:07:46,001 --> 01:07:51,821
in order to have the exact same standard of living in 2020, you would have to make 2.08

806
01:07:51,821 --> 01:07:58,341
on the tillion. It's like as many molecules exist in the universe.

807
01:08:00,581 --> 01:08:09,041
This is art created out of money that people made and they sold on the street. I lived in,

808
01:08:09,041 --> 01:08:15,201
I lived in Colombia in 2022, I think, 2022 or 2023.

809
01:08:15,561 --> 01:08:18,361
And I remember asking my host, I was like, this is kind of interesting.

810
01:08:18,461 --> 01:08:25,121
I've never been to a place where every single street corner, you have somebody at the stoplight and they're like performing tricks.

811
01:08:25,121 --> 01:08:27,901
Like there's mimes and there's guys that are juggling and whatever.

812
01:08:28,281 --> 01:08:29,421
So they're all Venezuelans.

813
01:08:30,021 --> 01:08:35,881
They walked here from Venezuela when their money became so worthless that they could not afford to live.

814
01:08:36,461 --> 01:08:38,501
And the ditches are filled with cash.

815
01:08:39,041 --> 01:08:44,361
The streets are just lined with cash because it's so abundant that it becomes.

816
01:08:44,501 --> 01:08:48,221
And of course, this of course, this has to be true. Right.

817
01:08:48,561 --> 01:09:00,201
Of course, this has to be true. If if the supply of something increases so much higher, you don't you don't value it anymore.

818
01:09:00,721 --> 01:09:04,241
Right. Why? Why is why is the Mona Lisa valued?

819
01:09:04,921 --> 01:09:05,721
There's one of them.

820
01:09:06,641 --> 01:09:08,281
What if there's a billion Mona Lisas?

821
01:09:08,661 --> 01:09:11,261
Everybody has one in their living room.

822
01:09:12,101 --> 01:09:13,041
Is it worthless?

823
01:09:13,741 --> 01:09:14,001
Yeah.

824
01:09:17,941 --> 01:09:22,081
A racehorse, a collector's car, a baseball card,

825
01:09:23,041 --> 01:09:25,201
their value is always tied to their scarcity.

826
01:09:25,201 --> 01:09:37,941
Remember, value equals desirability multiplied by scarcity.

827
01:09:40,261 --> 01:09:42,381
I want it and there's not much of it.

828
01:09:42,921 --> 01:09:44,241
That's what gives something value.

829
01:09:47,041 --> 01:09:51,021
More in Venezuela, making purses out of money.

830
01:09:52,201 --> 01:09:53,501
Price of a dozen eggs.

831
01:09:53,501 --> 01:09:58,221
In two years, the price of a dozen eggs went from $1,500 Venezuelan dollars to $1.4 million.

832
01:09:59,641 --> 01:10:01,981
This will happen to every single fiat currency.

833
01:10:02,541 --> 01:10:03,781
This will happen to the dollar.

834
01:10:03,901 --> 01:10:05,021
It will happen to the Singaporean dollar.

835
01:10:05,141 --> 01:10:06,521
It will happen to the Chinese yuan.

836
01:10:06,981 --> 01:10:08,201
It will happen to the Japanese yen.

837
01:10:08,701 --> 01:10:09,921
Japan's ahead of everybody.

838
01:10:10,061 --> 01:10:12,841
They've experienced negative interest rates already.

839
01:10:13,921 --> 01:10:18,001
They're ahead of everybody because they're kind of a vassal state of the United States.

840
01:10:18,261 --> 01:10:20,681
The Japanese hold more U.S. treasuries.

841
01:10:20,681 --> 01:10:23,361
They buy more U.S. debt than any other country.

842
01:10:23,501 --> 01:10:41,701
And so they're saddled with losing, right? Because they're buying this debt that pays them 0%, 1%, 2%, 3%. And the money decreases in value by 13% per year. So they're losing every single year. And they have to force people to keep playing that game of musical chairs.

843
01:10:41,701 --> 01:10:51,181
And remember, the only way that I can force you to move your cash and spend it and put it in the economy is I can make that cash so worthless that it hurts you to hold on to it.

844
01:10:51,441 --> 01:10:58,841
And they're already to that point where not only am I not going to pay you interest, I'm going to charge you interest to keep your money in a bank.

845
01:10:59,541 --> 01:11:02,861
They're ahead of the U.S. in that drop.

846
01:11:02,861 --> 01:11:06,501
Zimbabwe

847
01:11:06,501 --> 01:11:09,481
at the height of inflation

848
01:11:09,481 --> 01:11:11,461
prices doubled every 24 hours

849
01:11:11,461 --> 01:11:12,461
in Zimbabwe

850
01:11:12,461 --> 01:11:15,041
they had a

851
01:11:15,041 --> 01:11:18,601
100 trillion dollar

852
01:11:18,601 --> 01:11:20,821
bank note that they created

853
01:11:20,821 --> 01:11:25,381
and people wiped their ass with this

854
01:11:25,381 --> 01:11:28,241
because it was cheaper than toilet paper

855
01:11:28,241 --> 01:11:34,521
I want to go back

856
01:11:34,521 --> 01:11:35,901
I want to go back to

857
01:11:35,901 --> 01:11:37,781
this video

858
01:11:37,781 --> 01:11:40,441
mainly because I love cartoons

859
01:11:40,441 --> 01:11:42,441
but this is from the 60s

860
01:11:46,041 --> 01:11:48,441
oh, hold on

861
01:11:48,441 --> 01:11:54,201
Uncle Scrooge, why don't they just turn up a few billion or so?

862
01:11:54,801 --> 01:11:55,981
A few billion?

863
01:11:56,621 --> 01:11:58,141
Oh, dear Lord.

864
01:11:58,661 --> 01:12:01,361
I've had one billion hours of dues.

865
01:12:01,901 --> 01:12:04,621
If it weren't so frightening, I'd be a ghost.

866
01:12:05,441 --> 01:12:07,201
Folks have no conception.

867
01:12:10,141 --> 01:12:11,861
A fortune in the hat.

868
01:12:11,861 --> 01:12:13,401
Gee, you officer.

869
01:12:13,821 --> 01:12:14,841
I'm not too bad.

870
01:12:15,401 --> 01:12:16,301
See, honey?

871
01:12:16,941 --> 01:12:18,341
They were nowhere near.

872
01:12:18,441 --> 01:12:21,181
I have to wait on a hundred thousand years.

873
01:12:21,961 --> 01:12:23,681
It's about fifty seconds.

874
01:12:24,521 --> 01:12:26,381
Didn't you buy it without a break?

875
01:12:27,401 --> 01:12:29,961
In thirty-two years you have them all.

876
01:12:30,521 --> 01:12:32,681
But who is back with me?

877
01:12:32,781 --> 01:12:33,501
And now?

878
01:12:33,741 --> 01:12:34,821
You're in a lot.

879
01:12:35,301 --> 01:12:38,701
Aye, I'll print several billions and see what you've got.

880
01:12:39,081 --> 01:12:41,701
But unless something's behind it, in the treasury.

881
01:12:42,641 --> 01:12:44,701
Something in solid and secure.

882
01:12:45,701 --> 01:12:47,281
Uh, like me.

883
01:12:48,441 --> 01:12:49,881
We'd have inflation.

884
01:12:49,881 --> 01:12:51,241
Inflation?

885
01:12:51,241 --> 01:12:53,641
Oh, that's a mess.

886
01:12:53,641 --> 01:12:57,081
Your money would be more, less, and less.

887
01:12:57,081 --> 01:12:59,801
I'd like to take this hatch full, I dare say,

888
01:12:59,801 --> 01:13:03,001
to buy what you'd be if I would buy the cheap.

889
01:13:03,001 --> 01:13:07,081
A dollar wouldn't be worth the paper it's printed on.

890
01:13:07,081 --> 01:13:09,401
I don't know.

891
01:13:09,401 --> 01:13:11,561
Oh, good one.

892
01:13:11,561 --> 01:13:12,681
Good one.

893
01:13:12,681 --> 01:13:20,001
What you can find is what you've got in taxable accounts.

894
01:13:20,001 --> 01:13:24,381
It's a question of economics.

895
01:13:24,641 --> 01:13:29,381
I, it only means high school management.

896
01:13:30,101 --> 01:13:31,621
It's a great world.

897
01:13:32,561 --> 01:13:35,981
High school management, that's budgeting, dear Jen.

898
01:13:36,421 --> 01:13:40,021
I, financial discipline.

899
01:13:42,681 --> 01:13:46,901
It's not what you have. It's what you can buy with it. Right. Buying power.

900
01:13:48,161 --> 01:13:55,101
A cartoon duck in the 1960s knew this. And somehow we all forgot it.

901
01:13:55,101 --> 01:14:02,401
We all went off because we were told that prices going up are good because that encourages us to own assets.

902
01:14:02,521 --> 01:14:06,961
It encourages us to spend into the economy. It encourages us to buy houses.

903
01:14:06,961 --> 01:14:11,601
that encourages us to invest in the stock market

904
01:14:11,601 --> 01:14:16,261
and to buy debt and to buy bonds and collectibles.

905
01:14:16,261 --> 01:14:20,121
But we shouldn't be encouraged to buy things.

906
01:14:20,221 --> 01:14:23,001
We should only buy them when it makes sense for us to do so.

907
01:14:24,861 --> 01:14:27,041
A couple of charts that I wanted to go.

908
01:14:27,241 --> 01:14:28,821
Oh, wait, no, this one's even better.

909
01:14:31,681 --> 01:14:33,741
This is Jared Bernstein.

910
01:14:33,741 --> 01:14:37,741
I believe he was part of the Biden administration

911
01:14:38,541 --> 01:14:39,741
and the economic side.

912
01:14:41,021 --> 01:14:43,021
The U.S. government can't go bankrupt

913
01:14:43,021 --> 01:14:45,221
because we can print our own money.

914
01:14:46,341 --> 01:14:47,741
It obviously begs the question,

915
01:14:48,001 --> 01:14:49,901
why exactly are we borrowing an currency

916
01:14:49,901 --> 01:14:50,921
that we print ourselves?

917
01:14:51,341 --> 01:14:54,421
I'm waiting for someone to stand up and say,

918
01:14:55,081 --> 01:14:57,781
why don't we borrow our own currency in the first place?

919
01:14:59,081 --> 01:15:00,701
Like you said, they print the dollar,

920
01:15:00,701 --> 01:15:03,401
so why does the government either borrow?

921
01:15:03,741 --> 01:15:17,621
Well, again, some of the language and concepts are just confusing.

922
01:15:17,861 --> 01:15:22,061
The government definitely prints money, and it definitely lends that money,

923
01:15:22,061 --> 01:15:24,801
which is why the government definitely prints money,

924
01:15:25,241 --> 01:15:28,841
and then it lends that money by selling bonds.

925
01:15:29,421 --> 01:15:30,141
Is that what they do?

926
01:15:30,141 --> 01:15:37,341
they sell bonds.

927
01:15:37,481 --> 01:15:38,501
Yeah, they sell bonds.

928
01:15:38,801 --> 01:15:38,901
Right?

929
01:15:39,001 --> 01:15:41,501
So they sell bonds and people buy the bonds and lend them the money.

930
01:15:41,861 --> 01:15:41,981
Yeah.

931
01:15:42,301 --> 01:15:47,221
So a lot of times, at least to my year with MMT,

932
01:15:47,401 --> 01:15:50,881
the language and the concepts can be kind of unnecessarily confusing,

933
01:15:50,881 --> 01:15:53,641
but there is no question that the government prints money

934
01:15:53,641 --> 01:15:56,641
and then it uses that money to...

935
01:16:00,501 --> 01:16:04,281
So, yeah, I guess I'm just...

936
01:16:04,281 --> 01:16:05,361
I can't really talk...

937
01:16:05,361 --> 01:16:06,441
I don't get it.

938
01:16:06,521 --> 01:16:07,801
I don't know what they're talking about.

939
01:16:07,801 --> 01:16:12,861
Because it's like the government clearly prints money.

940
01:16:12,981 --> 01:16:13,901
It does it all the time.

941
01:16:14,101 --> 01:16:15,481
And it clearly borrows.

942
01:16:15,961 --> 01:16:18,261
Otherwise, we wouldn't be having this debt and deficit conversation.

943
01:16:18,441 --> 01:16:21,081
So I don't think there's anything confusing there.

944
01:16:23,641 --> 01:16:28,741
What does Ray Dalio think about inflation?

945
01:16:28,741 --> 01:16:35,041
He talks more about this in the long term, that cycle, and this may be added to the US.

946
01:16:35,301 --> 01:16:37,041
What does he think specifically about inflation?

947
01:16:37,461 --> 01:16:42,541
Ray Dalio came out a couple of years ago, very against Bitcoin.

948
01:16:42,921 --> 01:16:47,121
About two years ago, he came out and said, it's an effective store of value.

949
01:16:47,261 --> 01:16:50,381
You should probably have around 2% of your portfolio in it.

950
01:16:50,381 --> 01:16:54,121
Last week, he upped that number to at least 15%.

951
01:16:54,121 --> 01:16:58,581
He said, if you don't have at least 15% of your portfolio in Bitcoin, then you're falling behind.

952
01:16:58,941 --> 01:17:02,221
And that makes sense because the inflation rate's around 13%.

953
01:17:02,221 --> 01:17:05,781
By the way, so understand that this always, where's my eraser?

954
01:17:06,281 --> 01:17:09,341
This always looks the exact same.

955
01:17:10,101 --> 01:17:11,861
It always looks the exact same.

956
01:17:12,341 --> 01:17:17,461
Every single time a fiat currency dies, it looks the exact same.

957
01:17:17,461 --> 01:17:23,001
You start out and you have a supply of money, and it's usually backed by gold.

958
01:17:23,201 --> 01:17:28,241
Like every fiat money starts out being backed by something, gold, silver, whatever.

959
01:17:28,841 --> 01:17:30,721
Then they increase the supply a little bit.

960
01:17:31,501 --> 01:17:36,701
And then inflation hits, and they raise interest rates, which decreases the supply a little bit.

961
01:17:37,401 --> 01:17:44,701
And then they lower interest rates to stimulate the economy because at this point, it's already done.

962
01:17:44,701 --> 01:17:51,861
that currency is already going to die. You already have not enough chairs for people.

963
01:17:53,101 --> 01:17:58,561
And then it inflates a little bit more. And inflation gets out of control, so they

964
01:17:58,561 --> 01:18:04,081
raise interest rates and it goes down. But they have all this debt and they have to pay the debt.

965
01:18:04,141 --> 01:18:08,381
And the only way that you can pay the debt is to refinance it at a lower interest rate,

966
01:18:08,381 --> 01:18:16,701
Because you can't afford to borrow at 4% and keep borrowing and not make more money and pay 6%.

967
01:18:16,701 --> 01:18:19,121
You have to pay 3% or 2% or 1%, so you have to go down.

968
01:18:19,701 --> 01:18:23,861
So then the money supply goes like this, and then this, and then this, and then this.

969
01:18:24,481 --> 01:18:27,681
And it just becomes more and more chaotic and wild at the end.

970
01:18:28,601 --> 01:18:31,601
And at the end, it always looks like this.

971
01:18:33,201 --> 01:18:34,061
Every time.

972
01:18:34,961 --> 01:18:43,841
They start printing insane amounts when it gets way too out of control.

973
01:18:48,301 --> 01:18:51,821
This is the global supply of the dollar in 2020.

974
01:18:53,241 --> 01:18:56,121
We're printing it, we're printing it, we're printing it, we're printing it, we're printing it.

975
01:18:58,041 --> 01:18:59,561
Shit got really wild.

976
01:19:00,341 --> 01:19:01,701
Then we tightened interest rates.

977
01:19:01,701 --> 01:19:05,921
We dropped the supply by tightening interest rates that decreases the supply of money.

978
01:19:06,341 --> 01:19:07,461
And now what are we doing?

979
01:19:08,221 --> 01:19:09,801
We're going to drop interest rates again.

980
01:19:10,701 --> 01:19:11,141
Right.

981
01:19:11,381 --> 01:19:14,461
And it's going to go up and we're going to keep because we can't afford to pay that debt off.

982
01:19:16,981 --> 01:19:19,701
I like this one.

983
01:19:23,921 --> 01:19:25,541
This is Alan Greenspan again.

984
01:19:27,441 --> 01:19:29,321
After he had become part of the government.

985
01:19:29,321 --> 01:19:35,081
can pay any debt it has because we can always print money to do that.

986
01:19:35,581 --> 01:19:38,921
So there is zero probability of default.

987
01:19:41,261 --> 01:19:44,721
It's a short clip, but I play it just for the look of the other guy,

988
01:19:44,961 --> 01:19:48,421
where he goes, oh, God.

989
01:19:49,161 --> 01:19:50,601
And you should all do that, too.

990
01:19:50,721 --> 01:19:54,081
Every one of you should listen to that and go, oh, God.

991
01:19:55,081 --> 01:19:57,461
This is what my money is based off of?

992
01:19:57,461 --> 01:20:00,721
somebody using circular logic?

993
01:20:02,901 --> 01:20:04,241
We have debt, but that's okay.

994
01:20:04,301 --> 01:20:04,961
We can make money.

995
01:20:05,041 --> 01:20:05,781
How do we make money?

996
01:20:05,841 --> 01:20:06,981
By issuing more debt.

997
01:20:08,261 --> 01:20:10,281
And when you issue more debt, we need to make more money.

998
01:20:10,521 --> 01:20:13,721
And when we have more debt, we need to round and round and go

999
01:20:13,721 --> 01:20:14,721
until it goes to zero.

1000
01:20:15,861 --> 01:20:16,861
Every single time.

1001
01:20:17,481 --> 01:20:21,121
Guarantee it is a feature of the system.

1002
01:20:22,561 --> 01:20:23,861
And I think at this point,

1003
01:20:23,861 --> 01:20:31,921
just a couple more charts on like what happened so like so again remember that when your cash is

1004
01:20:31,921 --> 01:20:38,481
trash you seek to store value in other things you seek to maintain your buying power by hiding money

1005
01:20:38,481 --> 01:20:46,641
in other assets that do not inflate as fast and all you have to do is take a look at how much more

1006
01:20:46,641 --> 01:20:53,601
of that is issued right is the issuance of houses faster or slower than the issuance of dollars

1007
01:20:53,601 --> 01:20:55,301
It's way slower, right?

1008
01:20:55,641 --> 01:20:58,561
You can make a trillion dollars with a click of a keyboard.

1009
01:20:59,041 --> 01:21:00,121
It takes a while to issue.

1010
01:21:00,321 --> 01:21:06,901
By the way, this is why cows were so much better money than fiat, because they have a predictable issuance schedule.

1011
01:21:07,381 --> 01:21:11,641
It takes nine months and a boy and a girl cow to make another cow.

1012
01:21:12,721 --> 01:21:20,061
So when we know how much money is coming out and we can predict it, we can actually start to grapple with that a little bit.

1013
01:21:20,061 --> 01:21:23,541
and we can, the prices aren't affected as much.

1014
01:21:23,601 --> 01:21:27,761
But remember, we watched the clip of Jerome Powell.

1015
01:21:28,361 --> 01:21:30,741
We're not even thinking about, thinking about,

1016
01:21:30,821 --> 01:21:32,281
thinking about raising rates.

1017
01:21:32,801 --> 01:21:33,621
And then what's he do?

1018
01:21:33,981 --> 01:21:36,601
The fastest rate increase in human history.

1019
01:21:37,341 --> 01:21:40,321
And it sent things haywire, right?

1020
01:21:41,201 --> 01:21:44,141
So if you have predictability in your issuance schedule,

1021
01:21:44,881 --> 01:21:46,261
which Bitcoin does, right?

1022
01:21:46,261 --> 01:21:52,701
Like the brilliance of this, I love that it is so brilliant.

1023
01:21:53,221 --> 01:21:59,521
We don't have a predictable gold supply because we cannot predict who is going to hit the next mother load.

1024
01:22:00,041 --> 01:22:03,521
We cannot predict that if you dig here, you're going to find X amount of gold.

1025
01:22:03,581 --> 01:22:05,301
Or if you dig here, you're going to find X amount of gold.

1026
01:22:05,521 --> 01:22:12,501
We can't predict that an asteroid made out of gold, which is the only way that we get gold, it's just exploded stars, right?

1027
01:22:12,881 --> 01:22:14,141
It's the only way we have gold.

1028
01:22:14,141 --> 01:22:19,481
We can't predict when the next one's going to hit or how much gold's going to be in it.

1029
01:22:21,861 --> 01:22:24,401
It's hidden in the ground, and we can't determine it.

1030
01:22:24,441 --> 01:22:25,881
But Bitcoin is hidden in time.

1031
01:22:26,861 --> 01:22:30,261
Every 10 minutes, we know how much Bitcoin is coming out.

1032
01:22:31,081 --> 01:22:33,181
And then we also know the total supply.

1033
01:22:33,501 --> 01:22:37,541
So we have consistency in the unit of account.

1034
01:22:38,341 --> 01:22:43,081
And because we have consistency in the unit of account, we have a safe store of value.

1035
01:22:44,141 --> 01:22:48,161
Those are the two most important traits of money, most important purposes.

1036
01:22:50,161 --> 01:23:01,792
Why does the government borrow money if they can print money so

1037
01:23:01,792 --> 01:23:07,612
probably do about as good job as he does actually

1038
01:23:07,612 --> 01:23:17,512
like so let's talk about let's talk about cookies right let's talk about cookies

1039
01:23:18,032 --> 01:23:18,972
I have eight cookies.

1040
01:23:20,232 --> 01:23:23,312
I promised nine people they can have a cookie, right?

1041
01:23:25,012 --> 01:23:27,512
I made all the cookies that I could make.

1042
01:23:27,632 --> 01:23:28,532
I used all my flour.

1043
01:23:28,672 --> 01:23:29,472
I used all my eggs.

1044
01:23:29,552 --> 01:23:31,072
I used all my milk, right?

1045
01:23:31,292 --> 01:23:32,192
I used all my sugar.

1046
01:23:33,992 --> 01:23:37,212
But I know that you're going to be mad if you don't get your cookie, right?

1047
01:23:38,292 --> 01:23:44,952
So what I'm going to do is I'm going to borrow in order to get more milk,

1048
01:23:44,952 --> 01:23:52,992
eggs and sugar so that I can make you the ninth cookie, right? But of course, I'm going to borrow

1049
01:23:52,992 --> 01:23:58,912
more than what that cookie needs. It cost me $5 to make the cookie. I'm going to borrow 50 because

1050
01:23:58,912 --> 01:24:04,612
I got to pay an administrator and I got to pay a lobbyist and the lobbyist has lawyers and I got to,

1051
01:24:04,612 --> 01:24:16,532
right you see what i'm saying like governments are insanely inefficient right so there's this

1052
01:24:16,532 --> 01:24:21,692
multiplier right if a government needs a million dollars then what they actually need is a billion

1053
01:24:21,692 --> 01:24:26,652
dollars because everybody's got their hand out along the way the united states is like i think

1054
01:24:26,652 --> 01:24:32,612
it's like 22 of the united states depends upon the government for their means of income either by

1055
01:24:32,612 --> 01:24:37,012
directly working for the government, being on social services, or being a company that exists

1056
01:24:37,012 --> 01:24:44,032
solely on government contracts, that number was like 0.3% 100 years ago. So think about,

1057
01:24:44,312 --> 01:24:52,012
think about, think about what, what is a government? A government, let's see, I tried to do this when

1058
01:24:52,012 --> 01:24:57,012
I was on the beach, but we'll see. It's just going to look like a penis again. Hold on.

1059
01:24:57,012 --> 01:25:07,932
is it a shark close enough right it's a terrible shark but so yeah it's not good yeah there's a

1060
01:25:07,932 --> 01:25:13,772
reason i play music okay sharks whales what do they have they have these they have these little

1061
01:25:13,772 --> 01:25:19,632
these little fish that hang around and they exist off the scraps right and then they have these

1062
01:25:19,632 --> 01:25:24,372
little things that are in here and they eat the little pieces of food left over in their teeth

1063
01:25:24,372 --> 01:25:32,492
right? And we call that a symbiotic relationship. That's what governments are supposed to be,

1064
01:25:32,612 --> 01:25:36,892
right? They're supposed to be a symbiotic relationship. They're existing off the

1065
01:25:36,892 --> 01:25:43,992
resources of the people. The shark, whale, penis is the people. And the government is the little

1066
01:25:43,992 --> 01:25:49,852
things that are eating the little resources off of it, right? And they're providing a service,

1067
01:25:49,952 --> 01:25:53,832
right? They're cleaning the teeth. They're keeping it clean on the outside. They're keeping barnacles

1068
01:25:53,832 --> 01:26:05,452
off of it. But the only way that this works is if they're dependent upon the food from the whale,

1069
01:26:05,732 --> 01:26:13,652
from the shark. If this little fish can print its own food out of nothing, right,

1070
01:26:13,652 --> 01:26:23,952
then what does it become? It becomes, I'm terrible at drawing. It becomes a tick

1071
01:26:23,952 --> 01:26:32,692
where it's just sucking the life out of it. It's just taking a government that controls the money

1072
01:26:32,692 --> 01:26:38,332
is like being able to take as much as you want from the host organism, right? So if it can do

1073
01:26:38,332 --> 01:26:42,372
that, then it just sucks all the life out of the host organism until there's

1074
01:26:42,372 --> 01:26:46,332
nothing left. It becomes a tick. It's a glutton that has

1075
01:26:46,332 --> 01:26:49,672
learned that it can feed itself to no end.

1076
01:26:50,512 --> 01:26:54,332
Right? And there's no way to control it, right? Because it's a

1077
01:26:54,332 --> 01:26:58,272
good business to be in government. And so you're encouraged to go ahead

1078
01:26:58,272 --> 01:26:58,812
and get in that.

1079
01:26:58,812 --> 01:27:04,792
I mean, that's part of the reason

1080
01:27:04,792 --> 01:27:06,192
that the government borrows?

1081
01:27:07,412 --> 01:27:09,112
It's not money in the economy,

1082
01:27:09,312 --> 01:27:11,612
so strictly speaking,

1083
01:27:11,732 --> 01:27:13,252
so it doesn't contribute to inflation.

1084
01:27:14,472 --> 01:27:15,352
You're serious?

1085
01:27:16,212 --> 01:27:16,772
Sorry.

1086
01:27:16,932 --> 01:27:18,352
That was my reaction.

1087
01:27:19,392 --> 01:27:21,812
All the money always contributes to inflation

1088
01:27:21,812 --> 01:27:23,272
because no matter where it goes,

1089
01:27:23,372 --> 01:27:24,532
it ends up in the economy.

1090
01:27:24,772 --> 01:27:26,412
If I pay a government worker,

1091
01:27:26,752 --> 01:27:27,832
if I pay a zookeeper,

1092
01:27:27,952 --> 01:27:28,972
if I pay an astronaut,

1093
01:27:29,192 --> 01:27:32,332
they all put that money into the economy.

1094
01:27:32,472 --> 01:27:33,652
They all compete for housing,

1095
01:27:33,652 --> 01:27:35,132
for food, for goods and services.

1096
01:27:36,132 --> 01:27:38,472
There's no separate economy.

1097
01:27:39,312 --> 01:27:39,712
Right?

1098
01:27:39,712 --> 01:27:42,612
So inflation should be much higher than it is, like,

1099
01:27:42,972 --> 01:27:44,332
officially or whatever.

1100
01:27:46,472 --> 01:27:51,172
I mean, how does it use, like, how do they manage to,

1101
01:27:51,332 --> 01:27:51,872
what, officially?

1102
01:27:52,432 --> 01:27:53,012
Technology.

1103
01:27:54,512 --> 01:27:56,652
Technology allows us to do more with less.

1104
01:27:57,432 --> 01:28:00,452
And technology, as powerful as it is,

1105
01:28:00,452 --> 01:28:03,772
cannot overwhelm the amount of inflation.

1106
01:28:03,772 --> 01:28:07,932
I remember in 2015, there was the money supply.

1107
01:28:08,212 --> 01:28:11,432
Everyone's supply was like $2 trillion or something.

1108
01:28:12,092 --> 01:28:14,812
And then in 2015, it's almost $20 trillion.

1109
01:28:16,112 --> 01:28:17,672
That's the debt.

1110
01:28:18,152 --> 01:28:20,512
The actual base money is more like $8.

1111
01:28:21,052 --> 01:28:21,252
Yeah.

1112
01:28:22,492 --> 01:28:26,572
It doesn't add up if you look at the inflation rate.

1113
01:28:26,572 --> 01:28:35,552
per year.

1114
01:28:36,812 --> 01:28:38,592
Remember, inflation is a vector.

1115
01:28:38,852 --> 01:28:39,552
It's not a position.

1116
01:28:39,752 --> 01:28:40,572
It's a direction.

1117
01:28:45,852 --> 01:28:47,792
Yeah, so if it's 5% per year,

1118
01:28:47,872 --> 01:28:48,832
that's 10 years ago,

1119
01:28:49,272 --> 01:28:51,612
that means that it's almost a doubling.

1120
01:28:52,492 --> 01:28:53,352
All right, if you bought a house,

1121
01:28:53,512 --> 01:28:55,172
if you bought a house 10 years ago,

1122
01:28:55,172 --> 01:28:57,192
is it twice as valuable now? Yeah.

1123
01:28:57,192 --> 01:28:59,032
Okay, but the most part

1124
01:28:59,032 --> 01:29:00,992
inflates by the main things,

1125
01:29:01,132 --> 01:29:02,572
not the few years.

1126
01:29:03,412 --> 01:29:04,812
So I think they've managed to

1127
01:29:04,812 --> 01:29:07,092
have a 5% instead of 3%.

1128
01:29:07,092 --> 01:29:09,252
Understand that not every single

1129
01:29:09,252 --> 01:29:11,092
good inflates at the exact same rate,

1130
01:29:11,412 --> 01:29:13,152
right? Coffee is

1131
01:29:13,152 --> 01:29:15,052
not scarce, and so it's not going to go up

1132
01:29:15,052 --> 01:29:16,712
in price nearly as much as gold,

1133
01:29:16,992 --> 01:29:18,572
which is moderately scarce.

1134
01:29:19,132 --> 01:29:21,112
Houses are moderately scarce. They're going

1135
01:29:21,112 --> 01:29:23,152
to go up in supply much more

1136
01:29:23,152 --> 01:29:28,892
than candy bars because they're not scarce. And why? Because I don't store my wealth in Snicker

1137
01:29:28,892 --> 01:29:35,172
bars. I don't store my wealth in a Vente latte. I store my wealth in a house and I store my wealth

1138
01:29:35,172 --> 01:29:39,112
in a collectible car. And so there's more competition for those things because they're

1139
01:29:39,112 --> 01:29:46,872
scarce. Inflation, how much more is health insurance? 10 times as much, right? My clients,

1140
01:29:47,032 --> 01:29:53,052
when I was a banker, a 60-year-old and his wife, they paid $32,000 a year for health insurance.

1141
01:29:53,152 --> 01:29:54,452
Both in good shape, right?

1142
01:29:55,172 --> 01:29:58,992
Ten years before that, it was right around $2,000 per year, right?

1143
01:29:59,052 --> 01:30:00,932
So it hits different things differently.

1144
01:30:01,752 --> 01:30:05,092
So my point is that the official information figure is on the other day.

1145
01:30:05,792 --> 01:30:10,072
Yeah, that was literally the first thing that I said, is that CPI is complete bullshit.

1146
01:30:10,392 --> 01:30:10,732
Yes.

1147
01:30:10,732 --> 01:30:10,892
Yeah.

1148
01:30:10,892 --> 01:30:13,252
So how long do they, like, keep that up?

1149
01:30:13,592 --> 01:30:14,232
That's the question.

1150
01:30:14,792 --> 01:30:16,032
Stop believing in it.

1151
01:30:17,292 --> 01:30:18,452
Have you seen screenplay?

1152
01:30:18,732 --> 01:30:19,452
You should not come up.

1153
01:30:19,452 --> 01:30:19,992
I'm so sorry.

1154
01:30:20,332 --> 01:30:20,812
Yeah.

1155
01:30:22,072 --> 01:30:22,592
Yeah.

1156
01:30:23,152 --> 01:30:30,892
Yeah. If you want a good look at what inflation is, then you can always look at this site.

1157
01:30:37,532 --> 01:30:45,232
Or maybe not. Well, I guess we failed that. I encourage you all to look at this.

1158
01:30:45,232 --> 01:30:49,432
pricedinbitcoin.com

1159
01:30:49,432 --> 01:30:53,612
and it will give you an idea

1160
01:30:53,612 --> 01:30:58,752
of what happens when an innovative technology

1161
01:30:58,752 --> 01:31:02,112
starts to take over an entire asset sector.

1162
01:31:03,472 --> 01:31:06,052
The house that you guys are looking to buy, right?

1163
01:31:06,272 --> 01:31:08,832
The house that you guys are looking to buy 10 years ago

1164
01:31:08,832 --> 01:31:10,332
would have cost you 10,000 Bitcoin.

1165
01:31:10,512 --> 01:31:13,212
Today, it'll cost you 1.5, right?

1166
01:31:13,212 --> 01:31:17,072
Prices fall forever when your money stays scarce.

1167
01:31:43,212 --> 01:31:48,192
It's going to be super violent, super distressing, like most people are.

1168
01:31:48,272 --> 01:31:48,452
Yeah.

1169
01:31:48,452 --> 01:31:58,952
So one thing that's very common during any sort of decentralization era is that nation-state violence falls, but person-to-person violence rises.

1170
01:31:59,212 --> 01:32:01,212
And so you will see more individual.

1171
01:32:01,392 --> 01:32:11,032
This is why being a fighter is such a good skill to have today, because the returns to violence at the nation-state level have fallen drastically.

1172
01:32:11,032 --> 01:32:15,052
but their turns to violence on the individual level are much higher.

1173
01:32:15,732 --> 01:32:17,872
And so you're always going to see that.

1174
01:32:17,972 --> 01:32:19,532
So what is my recommendation?

1175
01:32:20,072 --> 01:32:24,112
My recommendation to you is that you stop fucking around with shit coins,

1176
01:32:24,832 --> 01:32:26,992
is that you stop trying to get rich quick,

1177
01:32:27,452 --> 01:32:30,672
because get rich quick schemes are sold by people who get rich quick,

1178
01:32:30,672 --> 01:32:32,552
and they're bought by people who get poor quick.

1179
01:32:33,512 --> 01:32:36,852
My recommendation is that you invest in learning hard skills.

1180
01:32:37,372 --> 01:32:40,572
You invest in the ability to speak with precision,

1181
01:32:40,572 --> 01:32:48,892
to use your language to its greatest efficiency and accuracy. I suggest that you become responsible

1182
01:32:48,892 --> 01:32:54,992
for your life in as many ways as possible. Clean your own room, manage your own bank accounts,

1183
01:32:56,052 --> 01:33:01,532
fix your own shit, build stuff if you can, learn how to do things for yourself.

1184
01:33:02,532 --> 01:33:06,092
I suggest that you spend a lot of time understanding philosophy.

1185
01:33:06,092 --> 01:33:10,012
and that's more of an AI thing

1186
01:33:10,012 --> 01:33:14,412
because AI is very rapidly going to be programmed

1187
01:33:14,412 --> 01:33:15,512
in natural language

1188
01:33:15,512 --> 01:33:17,752
and Andres Carpathie says this too, right?

1189
01:33:17,832 --> 01:33:23,952
He's like the coding language of the future is English, right?

1190
01:33:24,752 --> 01:33:24,992
So...

1191
01:33:24,992 --> 01:33:25,872
You just describe Athens.

1192
01:33:26,172 --> 01:33:26,512
What's that?

1193
01:33:26,692 --> 01:33:27,992
You just describe Athens.

1194
01:33:28,312 --> 01:33:28,752
Actors?

1195
01:33:29,052 --> 01:33:29,532
Athens.

1196
01:33:29,772 --> 01:33:30,132
Greece.

1197
01:33:30,272 --> 01:33:30,792
Athens, yeah.

1198
01:33:31,272 --> 01:33:32,132
They have a generation.

1199
01:33:32,552 --> 01:33:32,712
Yeah.

1200
01:33:32,712 --> 01:33:33,552
They have a philosophy.

1201
01:33:33,772 --> 01:33:33,872
Yeah.

1202
01:33:33,872 --> 01:33:34,572
They shape.

1203
01:33:34,972 --> 01:33:35,112
Yeah.

1204
01:33:35,112 --> 01:33:38,032
They care about how they talk and communicate what they need.

1205
01:33:38,272 --> 01:33:39,612
They need to help the bill.

1206
01:33:39,892 --> 01:33:40,032
Yep.

1207
01:33:40,572 --> 01:33:43,632
They had a – they remember like wrestling was a big part,

1208
01:33:43,712 --> 01:33:46,572
like being able to defend yourself was a huge part of that society.

1209
01:33:46,832 --> 01:33:46,992
Yep.

1210
01:33:47,472 --> 01:33:47,852
Yep.

1211
01:33:47,972 --> 01:33:49,432
They also had a pretty stable money.

1212
01:33:50,372 --> 01:33:50,492
Yeah.

1213
01:33:50,912 --> 01:33:51,952
So, yeah, that's the thing.

1214
01:33:53,272 --> 01:33:58,852
And then just – yeah, the thing about Bitcoin that people talk about

1215
01:33:58,852 --> 01:34:01,852
is having a low time preference, is being patient,

1216
01:34:01,852 --> 01:34:04,912
like understanding that I don't need to get rich today.

1217
01:34:05,112 --> 01:34:16,012
or tomorrow or in five years that I have a life to live. And that if you spend your life

1218
01:34:16,012 --> 01:34:23,992
dedicated to becoming good at something or just a few things, then you can be very successful.

1219
01:34:24,492 --> 01:34:32,652
But you have to choose wisely what those things are, right? If it's 1975 and I decide to spend my

1220
01:34:32,652 --> 01:34:44,692
life becoming a typewriter repairman, I'm going to have to change my expertise. If it's 2008 and I

1221
01:34:44,692 --> 01:34:51,052
decide to spend my life becoming a watch repairman, that's not going to be a very valuable skill

1222
01:34:51,052 --> 01:34:56,292
moving on. So what are the valuable skills? It's being able to speak. It's being able to connect

1223
01:34:56,292 --> 01:35:03,612
with people. I do think music is actually one of the highest returns. I think, and this is delving

1224
01:35:03,612 --> 01:35:08,632
far away, and this is a personal thing, and so this has nothing to do with this, but my personal

1225
01:35:08,632 --> 01:35:16,892
thoughts is that we're moving into an era of insane abundance, where everyone will have everything

1226
01:35:16,892 --> 01:35:24,832
they need, and nothing will be scarce except experience. So the experience of being in pristine

1227
01:35:24,832 --> 01:35:32,912
nature will be scarce. The experience of being at a live music concert will be scarce. The experience

1228
01:35:32,912 --> 01:35:38,452
of having children and having loved ones close to you will be scarce. The experience of being

1229
01:35:38,452 --> 01:35:44,252
physically fit will be scarce. And so those are the things that I think are the most valuable.

1230
01:35:44,972 --> 01:35:53,932
Yeah. And that's a very long-term bet. Yeah. All right. What else we got? Yeah. Yeah.

1231
01:35:53,932 --> 01:36:05,712
Yeah, they got to make the ninth cookie because they promised nine and they only had eight.

1232
01:36:05,712 --> 01:36:06,092
Yep.

1233
01:36:11,452 --> 01:36:11,972
Right.

1234
01:36:13,112 --> 01:36:16,332
But when they print more money, they're promising more cookies.

1235
01:36:16,332 --> 01:36:28,852
if you print more money you're promising more cookies without having the milk eggs and sugar

1236
01:36:28,852 --> 01:36:36,172
to make them right so you have to so so here's how it works i'm a government i create a bond

1237
01:36:36,172 --> 01:36:43,452
i give that bond to you i i say i'll pay you interest for 30 years 20 years plus the amount

1238
01:36:43,452 --> 01:36:47,952
of the bond if you give me the money right now to buy the milk, eggs, and sugar.

1239
01:36:48,592 --> 01:36:55,372
So if I just print it, then I have nothing, right?

1240
01:36:55,592 --> 01:36:56,272
I have nothing.

1241
01:36:56,372 --> 01:36:59,492
I can't print it without having the debt.

1242
01:37:00,452 --> 01:37:02,212
You can't separate the two.

1243
01:37:02,592 --> 01:37:04,052
They have to be involved, right?

1244
01:37:04,052 --> 01:37:05,612
They have to be together.

1245
01:37:06,512 --> 01:37:11,572
Is it like the legal procedures around printing money?

1246
01:37:11,572 --> 01:37:18,572
Like, then they have to have, like, some special vote to print money, whereas to issue bonds, they can just go and do it in, like, a regular...

1247
01:37:18,572 --> 01:37:24,592
Like, that's why the machine would increase when they were like, yeah, we're going to print those money, and it went through, like, Congress.

1248
01:37:25,092 --> 01:37:27,652
I think it's the other way around, isn't it?

1249
01:37:27,652 --> 01:37:30,172
Because, like, Congress votes to raise the debt ceiling.

1250
01:37:30,852 --> 01:37:36,912
So when they vote to raise the debt ceiling, what they're doing is they're approving the sale of more bonds, which is the creation of more money.

1251
01:37:41,572 --> 01:37:51,992
Is there a restriction? I would say, I mean, so the levers that the Federal Reserve has to pull is they change interest rates, which changes the supply of money in the market.

1252
01:37:55,312 --> 01:38:00,212
And they can issue more money, which they call they call quantitative easing or quantitative tightening.

1253
01:38:00,212 --> 01:38:05,912
Right. Which in every if you look at that from any other country, you call that currency debasement.

1254
01:38:06,172 --> 01:38:11,192
That's that's what it's known as. But U.S. has a fancy term for it to make it sound not as bad.

1255
01:38:11,572 --> 01:38:19,592
I genuinely think that it's just the Board of Governors that approves it, but I'm not certain on that.

1256
01:38:20,412 --> 01:38:26,992
And by the way, I mean, I don't feel bad for not knowing that answer because the guy who determined that has no clue, right?

1257
01:38:28,772 --> 01:38:29,212
Yeah.

1258
01:38:29,792 --> 01:38:35,432
Every time there's like a quantitative easing session in the UK, it's like offline news and there's like a speech given.

1259
01:38:35,792 --> 01:38:36,112
Yeah, yeah.

1260
01:38:36,112 --> 01:38:39,072
Whereas like issuing treasury bills, it's like they happen every day.

1261
01:38:39,072 --> 01:38:55,512
Yeah, every day. Every day there's a market for treasury. I think it's every week or something like that. Yeah, and so you're just trading money. By the way, this is a fun fact. The largest market in the entire world, does anybody know what the largest daily market in the entire world is?

1262
01:38:55,512 --> 01:39:07,112
the most liquid market is forex right what is forex what well it's it's betting

1263
01:39:07,112 --> 01:39:13,852
on which fiat money is going to live and which one's going to die right seven trillion dollars

1264
01:39:13,852 --> 01:39:20,852
a day seven trillion dollars a day is exchanged in the forex market

1265
01:39:20,852 --> 01:39:23,872
betting on which currencies are going to live and die.

1266
01:39:26,872 --> 01:39:28,432
That seems like a...

1267
01:39:28,432 --> 01:39:28,632
What do you got?

1268
01:39:28,632 --> 01:39:31,392
I think the thing that helped me understand

1269
01:39:31,392 --> 01:39:36,572
is to think of money as oil in an engine

1270
01:39:36,572 --> 01:39:40,872
or as water in the ecosystem.

1271
01:39:42,752 --> 01:39:44,652
I think oil in an engine probably works better

1272
01:39:44,652 --> 01:39:46,632
because oil in an engine is...

1273
01:39:46,632 --> 01:39:48,992
You only need the amount of oil that the engine needs.

1274
01:39:49,112 --> 01:39:50,532
If you have too little, it causes problems.

1275
01:39:50,532 --> 01:39:52,092
If you have too much, it causes problems.

1276
01:39:53,032 --> 01:39:57,872
The too little thing doesn't work very well as an analogy because there's no such thing as too little money.

1277
01:39:58,352 --> 01:40:01,552
There's just, does it meet the characteristics of money?

1278
01:40:01,712 --> 01:40:05,092
It could be this much, this much, this much, this much, doesn't matter, right?

1279
01:40:06,852 --> 01:40:11,032
But yeah, it's half of the world.

1280
01:40:11,552 --> 01:40:13,312
Like understand that money is half of the world.

1281
01:40:13,452 --> 01:40:14,432
The other half is stuff.

1282
01:40:15,452 --> 01:40:18,292
Money is the non-material good that we pass between us.

1283
01:40:18,292 --> 01:40:24,252
For all of eternity, we've used material goods to pass between us that also had utility value.

1284
01:40:24,752 --> 01:40:25,832
Gold has utility value.

1285
01:40:25,972 --> 01:40:26,952
Cattle have utility value.

1286
01:40:27,092 --> 01:40:28,212
Salt has utility value.

1287
01:40:28,672 --> 01:40:30,672
But we now have a non-material good.

1288
01:40:30,772 --> 01:40:34,612
We have a good that we can pass value that only has value.

1289
01:40:35,212 --> 01:40:38,052
I can't use Bitcoin to tie my shoes with.

1290
01:40:38,112 --> 01:40:39,492
I can't make it into a car.

1291
01:40:40,232 --> 01:40:42,892
I can't do anything with it other than exchange value.

1292
01:40:43,032 --> 01:40:44,992
And that's perfect, right?

1293
01:40:45,112 --> 01:40:47,332
It's a purpose-made, purpose-engineered tool.

1294
01:40:47,332 --> 01:40:54,212
So, another, like, so a small high-level pattern is something to play with.

1295
01:40:54,212 --> 01:41:03,572
Think about the parking, because the parking is free, and the stuff I've said, customers

1296
01:41:03,572 --> 01:41:06,572
can't visit the shops, there's no parking nearby.

1297
01:41:07,352 --> 01:41:13,952
The parking's too expensive, people do not respect the doors, or nobody can afford the

1298
01:41:13,952 --> 01:41:16,052
So there's no good in the shops.

1299
01:41:16,572 --> 01:41:28,732
But if the parking price just rises, the average person can spend just not the right amount of time for the business or sacrifice just through the pricing of the parking.

1300
01:41:29,012 --> 01:41:36,512
I think for that analogy to work, then the amount of parking would have to expand and contract every time the amount of parking was needed or not needed.

1301
01:41:37,172 --> 01:41:39,492
Like nobody needs to park at a mall at 2 o'clock in the morning.

1302
01:41:39,872 --> 01:41:41,472
So you don't need any parking spaces there.

1303
01:41:41,792 --> 01:41:43,832
You need a lot at 11 a.m., right?

1304
01:41:43,952 --> 01:41:46,212
So in and out, in and out.

1305
01:41:47,432 --> 01:41:52,312
What do you think about assets like the MSCI world, the S&P, or emerging markets?

1306
01:41:52,532 --> 01:41:53,472
What do I think about what?

1307
01:41:53,712 --> 01:41:54,152
The assets.

1308
01:41:54,732 --> 01:41:55,312
The asset?

1309
01:41:56,212 --> 01:41:58,952
MSCI world, the emerging markets, S&P.

1310
01:41:59,852 --> 01:42:00,712
MSCI world?

1311
01:42:01,072 --> 01:42:02,652
Yeah, like ETF, the index fund.

1312
01:42:02,932 --> 01:42:03,652
That hold Bitcoin?

1313
01:42:04,412 --> 01:42:05,772
Or just in general?

1314
01:42:05,972 --> 01:42:08,132
Like index funds.

1315
01:42:08,732 --> 01:42:10,212
Of tracking emerging markets.

1316
01:42:10,212 --> 01:42:12,372
Yeah, yeah, yeah.

1317
01:42:12,372 --> 01:42:21,172
They're a specific barometer of technology investment in a place that has a lot of gains to be made, right?

1318
01:42:21,172 --> 01:42:28,692
So you take a third world country and you take them from dirt roads to hyperconnectivity.

1319
01:42:29,092 --> 01:42:36,272
There's a quick rapid ascent maybe to what modern economies look like.

1320
01:42:36,672 --> 01:42:39,852
But as far as like, what do I think about investing in that?

1321
01:42:39,852 --> 01:42:44,372
so that's a trade

1322
01:42:44,372 --> 01:42:45,352
it's not an investment

1323
01:42:45,352 --> 01:42:47,312
you will exit that trade

1324
01:42:47,312 --> 01:42:50,132
has there ever been a country

1325
01:42:50,132 --> 01:42:52,172
that has been strong

1326
01:42:52,172 --> 01:42:53,992
for 10,000 years

1327
01:42:53,992 --> 01:42:54,772
no

1328
01:42:54,772 --> 01:43:00,772
oh general index investing

1329
01:43:00,772 --> 01:43:01,212
yeah

1330
01:43:01,212 --> 01:43:03,852
I see

1331
01:43:03,852 --> 01:43:04,272
I see

1332
01:43:04,272 --> 01:43:07,492
the quote that I would use there

1333
01:43:07,492 --> 01:43:09,132
or the framework that I would use

1334
01:43:09,132 --> 01:43:13,672
So what you're doing there is you are diversifying amongst a whole bunch of different things, right?

1335
01:43:13,692 --> 01:43:16,852
And you're hoping that there's more winners than losers.

1336
01:43:17,072 --> 01:43:17,412
That's it.

1337
01:43:17,772 --> 01:43:19,752
You're just hoping that there's more winners than losers.

1338
01:43:20,912 --> 01:43:23,272
I love how Michael Saylor talks about this.

1339
01:43:23,332 --> 01:43:26,312
He says that diversification is for people who can't make up their mind.

1340
01:43:27,612 --> 01:43:34,412
The reason that we diversified throughout all of investment history, I was taught to diversify when I was an investment advisor.

1341
01:43:34,412 --> 01:43:42,112
The reason is, if you start to look at it from this framework, is that you're just trying to catch the bubbles before they pop.

1342
01:43:42,772 --> 01:43:49,072
So in 2008, when I was a financial advisor, it was, well, the real estate bubble just popped.

1343
01:43:49,332 --> 01:43:50,632
It dropped down to nothing.

1344
01:43:50,752 --> 01:43:52,012
So real estate's a good investment.

1345
01:43:53,792 --> 01:43:56,672
The stock market just crashed.

1346
01:43:56,852 --> 01:43:59,452
So stock markets are a good investment right now, right?

1347
01:43:59,712 --> 01:44:02,412
But bonds are a terrible investment, right?

1348
01:44:02,412 --> 01:44:25,352
But you still had the 60-40 portfolio. So you're just, again, remember if the supply can be increased at all, not just of money, of anything. If the supply can be increased at all, it's only an amount of time before it becomes worthless effectively. It falls to the cost of production.

1349
01:44:25,352 --> 01:44:28,272
We're seeing this with OnlyFans right now, right?

1350
01:44:29,032 --> 01:44:32,352
First couple hundred thousand people that got into OnlyFans, they became multimillionaires.

1351
01:44:33,172 --> 01:44:34,432
Now, maybe a millionaire.

1352
01:44:34,852 --> 01:44:35,852
Now it's AI.

1353
01:44:37,032 --> 01:44:39,292
Make $5,000, $10,000, right?

1354
01:44:39,432 --> 01:44:48,232
And it's forcing all the other people out of the market because we're making it, we're increasing the supply so much that the value has fallen to effectively nothing, right?

1355
01:44:48,652 --> 01:44:54,232
So you can put this and be 500 on that drop, minus 90%.

1356
01:44:54,232 --> 01:44:58,192
No, no, it's back here, actually.

1357
01:44:58,692 --> 01:45:00,892
I've got the S&P on a slide.

1358
01:45:01,252 --> 01:45:05,412
S&P pricing, but when it's 4.9%, there you go.

1359
01:45:06,492 --> 01:45:09,872
Yeah, S&P barely keeps up with inflation.

1360
01:45:11,292 --> 01:45:13,552
And by the way, the S&P, so that's, what is it?

1361
01:45:13,612 --> 01:45:16,632
The 500, that's the 500 most profitable companies in the world.

1362
01:45:17,352 --> 01:45:19,072
Seven of them make all the profit.

1363
01:45:19,072 --> 01:45:22,252
The other 493 actually drag it down, right?

1364
01:45:22,252 --> 01:45:24,212
That's what we call the FAANG stocks, right?

1365
01:45:24,292 --> 01:45:29,552
Facebook, Apple, Amazon, Netflix, Google, now Tesla, and NVIDIA.

1366
01:45:30,312 --> 01:45:31,952
I think there's one more, but I forget it.

1367
01:45:32,212 --> 01:45:32,472
Amazon.

1368
01:45:32,792 --> 01:45:33,372
I said Amazon.

1369
01:45:35,812 --> 01:45:37,312
Maybe this is a topic for Netflix.

1370
01:45:37,972 --> 01:45:42,952
We'll just leave credit on this move because a lot of sports in the economy is now built on credit.

1371
01:45:43,112 --> 01:45:43,292
Yeah.

1372
01:45:43,892 --> 01:45:48,312
Which is basically there's all this excess money in the system, so then they just leave credit on the phone.

1373
01:45:48,412 --> 01:45:48,572
Yeah.

1374
01:45:48,572 --> 01:45:51,832
How would credit work in this new Bitcoin economy?

1375
01:45:51,832 --> 01:45:57,812
Yeah. So the entirety of our economy is built on credit, right? The only way that our economy

1376
01:45:57,812 --> 01:46:03,432
works is through debt, which is the issuance of credit. We need to have a good understanding

1377
01:46:03,432 --> 01:46:11,932
of what credit is. Credit means that I am pulling value from the future into the present,

1378
01:46:11,932 --> 01:46:22,352
right? I'm reaching out and I'm saying, I want $500,000 that I'll pay you back in 20 years,

1379
01:46:22,352 --> 01:46:29,572
but I want it now. And I'm making a bet that that $500,000 today is worth more than that $500,000

1380
01:46:29,572 --> 01:46:34,492
down the road. And that makes perfect sense when you have a money that goes down in value,

1381
01:46:34,492 --> 01:46:39,292
because it absolutely is, right? And so it's built on that. But when your money is built on

1382
01:46:39,292 --> 01:46:47,552
of money that goes the other way, when that five Bitcoin in the future is worth exponentially more

1383
01:46:47,552 --> 01:46:54,332
than the five Bitcoin today, what you're going to see is just a reevaluation of interest rates,

1384
01:46:54,592 --> 01:47:00,332
where they go to the natural interest rate. And that natural interest rate is going to be a

1385
01:47:00,332 --> 01:47:06,232
measure of the technological, like how much better does technology make society? We will still have

1386
01:47:06,232 --> 01:47:11,352
credit, we will have a lot less credit. We'll have a lot less credit.

1387
01:47:11,992 --> 01:47:15,272
My hypothesis is that credit will be spent in a lot better way.

1388
01:47:15,812 --> 01:47:16,832
Yes. Yeah.

1389
01:47:16,832 --> 01:47:19,692
We spend it a bit shorter, you're going to get more than 15 cents.

1390
01:47:19,892 --> 01:47:24,772
Yeah. I mean, like, why did we have the crash of the housing market? It's because strippers

1391
01:47:24,772 --> 01:47:31,032
had 14 houses, right? People were putting in mortgage applications with their dog's name

1392
01:47:31,032 --> 01:47:37,552
on it and buying houses in their dog's name, right? We overextended. We went too far, right?

1393
01:47:38,932 --> 01:47:43,932
And by the way, the reason that happened was because they were all on variable rate loans.

1394
01:47:44,432 --> 01:47:49,332
So those variable rate loans, when we started to experience inflation and we had to raise the

1395
01:47:49,332 --> 01:47:53,252
interest rate, those people could no longer afford that house. Because if you have a 2%

1396
01:47:53,252 --> 01:47:58,612
loan and then the rate goes to 6%, it's not a small increase in your mortgage payment.

1397
01:47:59,172 --> 01:48:01,772
That's like a tripling of your mortgage payment.

1398
01:48:02,312 --> 01:48:05,492
Not just a tripling of the, that's like a tripling of the whole payment, right?

1399
01:48:05,972 --> 01:48:07,912
So you just can't afford that.

1400
01:48:08,152 --> 01:48:19,772
So, yeah, you're just going to see sensibility in the market where if you can't afford to buy something, you shouldn't buy it.

1401
01:48:20,992 --> 01:48:21,452
Right?

1402
01:48:21,892 --> 01:48:23,112
That just makes more sense.

1403
01:48:27,652 --> 01:48:28,312
Hell yeah.

1404
01:48:28,612 --> 01:48:29,612
We need to borrow money.

1405
01:48:29,612 --> 01:48:30,612
Yeah.

1406
01:48:30,612 --> 01:48:31,612
Based on my understanding.

1407
01:48:31,612 --> 01:48:36,612
Obviously, we bring money, for government, we bring money, all of it's in there.

1408
01:48:36,612 --> 01:48:40,612
It's kind of like an exaggeration because it's back from that.

1409
01:48:40,612 --> 01:48:44,612
So government uses that to get some money.

1410
01:48:44,612 --> 01:48:52,612
And then, just like any person, if I borrow too much, then I need somebody to determine,

1411
01:48:52,612 --> 01:48:55,612
to judge how much I can pay back.

1412
01:48:55,612 --> 01:48:58,112
But the government just borrowed from itself

1413
01:48:58,912 --> 01:49:02,252
And then, oh yeah, that shouldn't be a

1414
01:49:02,252 --> 01:49:03,752
What do you say, the meaning?

1415
01:49:03,752 --> 01:49:06,252
That's what we have for the devastating meaning

1416
01:49:06,252 --> 01:49:09,352
But the issue is that it's just people breaking the meaning

1417
01:49:09,352 --> 01:49:13,872
So that's why I would say the borrowing and money creation is

1418
01:49:13,872 --> 01:49:20,012
Unstoppable because they keep breaking the devastating meaning

1419
01:49:20,012 --> 01:49:21,612
The creation

1420
01:49:21,612 --> 01:49:25,372
So supposedly the money creation is that

1421
01:49:25,372 --> 01:49:32,372
Yeah.

1422
01:49:32,372 --> 01:49:35,372
Yeah.

1423
01:49:35,372 --> 01:49:36,372
Yeah.

1424
01:49:36,372 --> 01:49:37,372
Yeah.

1425
01:49:37,372 --> 01:49:38,372
Yeah.

1426
01:49:38,372 --> 01:49:39,372
Yeah.

1427
01:49:39,372 --> 01:49:40,372
Yeah.

1428
01:49:40,372 --> 01:49:41,372
Yeah.

1429
01:49:41,372 --> 01:49:42,372
Yeah.

1430
01:49:42,372 --> 01:49:43,372
Yeah.

1431
01:49:43,372 --> 01:49:44,372
Yeah.

1432
01:49:44,372 --> 01:49:45,372
Yeah.

1433
01:49:45,372 --> 01:49:46,372
Yeah.

1434
01:49:46,372 --> 01:49:48,372
And the debt's backed by violence.

1435
01:49:48,372 --> 01:49:50,372
And so, nobody wants to pay back.

1436
01:49:50,372 --> 01:49:51,372
Yeah.

1437
01:49:51,372 --> 01:49:52,372
Yeah.

1438
01:49:52,372 --> 01:49:53,372
Yeah.

1439
01:49:53,372 --> 01:49:54,852
And the debt's backed by violence.

1440
01:49:55,032 --> 01:49:59,792
And so you have to keep expanding violence in order to keep expanding the debt.

1441
01:50:01,492 --> 01:50:02,032
All right.

1442
01:50:02,032 --> 01:50:02,952
I think we're at a good spot.

1443
01:50:03,732 --> 01:50:05,632
I appreciate you guys being here for this.

1444
01:50:05,632 --> 01:50:21,212
Next week, we will go a little more in depth on what Bitcoin is, how it works, and kind of, again, try to move a little closer to a full understanding of what an innovation in technology can do.

1445
01:50:21,212 --> 01:50:28,832
and the, I guess, the incredible advantage of being an early adopter of new innovation.

1446
01:50:29,192 --> 01:50:30,772
So thank you guys very much. I appreciate it.