1
00:00:00,000 --> 00:00:11,120
Look, I have to start by saying I can already tell that the comment section is going to be elated for this catch up because this is the first one where you actually have a mic.

2
00:00:15,980 --> 00:00:17,800
Yeah, I got a lot of feedback on that.

3
00:00:17,920 --> 00:00:23,060
And so, yeah, the Mrs. FFTT was finally she's she took care of me here.

4
00:00:23,120 --> 00:00:24,360
So I've got I've got a very.

5
00:00:25,320 --> 00:00:26,640
It's apparently a good one.

6
00:00:26,640 --> 00:00:27,960
I wouldn't know if it's a good one.

7
00:00:28,060 --> 00:00:28,860
It's the same one you've got.

8
00:00:28,940 --> 00:00:29,640
So it must be good.

9
00:00:29,640 --> 00:00:33,920
So, yeah, it's here.

10
00:00:34,100 --> 00:00:35,080
So that's good.

11
00:00:36,260 --> 00:00:38,800
The sound quality is impeccable.

12
00:00:39,500 --> 00:00:42,420
And I think it's important that it's impeccable for this update

13
00:00:42,420 --> 00:00:46,020
because, as you were just saying, the world is getting crazier.

14
00:00:47,240 --> 00:00:52,560
And I think we had a stark reminder of how crazy and volatile it can get

15
00:00:52,560 --> 00:00:57,120
at least in markets over the last 96 hours with Trump's Friday

16
00:00:57,120 --> 00:01:03,540
true social posts that sent markets into a tizzy and then predictable. I recorded on Friday with

17
00:01:03,540 --> 00:01:11,120
somebody right after the post went out and I said, okay, we can expect a post on Sunday morning or

18
00:01:11,120 --> 00:01:17,520
afternoon sort of backing off from his statements. And that's exactly what happened for those who are

19
00:01:17,520 --> 00:01:24,160
unaware. Trump came out and said that we're going to put a hundred percent tariffs on

20
00:01:24,160 --> 00:01:28,980
China's rare earth metals because they weren't cooperating in negotiations.

21
00:01:28,980 --> 00:01:34,040
And then Sunday said, hey, President Xi was was just not in a good state of mind.

22
00:01:34,100 --> 00:01:35,240
We're back into a good spot.

23
00:01:35,240 --> 00:01:39,880
What is what is this geopolitical volatility signal to you?

24
00:01:41,420 --> 00:01:52,480
I think it I think it signals that that China has a lot more leverage than a lot of the Western commentators

25
00:01:52,480 --> 00:01:57,920
are admitting. And maybe this might have been the first time where they finally admitted like,

26
00:01:58,500 --> 00:02:03,320
oh, like reading between the lines. I think China retaliated for

27
00:02:03,320 --> 00:02:12,400
the latest semiconductor, high-end semiconductor-related sanctions. And basically my view

28
00:02:12,400 --> 00:02:19,360
was like, all right, well, you're not going to be allowed to have this stuff. That was the initial

29
00:02:19,360 --> 00:02:25,480
read. And it's interesting. Trump came out with what they said, with what he said Friday,

30
00:02:25,640 --> 00:02:30,940
right, which is 100 percent tariffs and markets through a fit. And then the Chinese came out and

31
00:02:30,940 --> 00:02:35,140
clarified either a Saturday or Sunday. I don't remember exactly when it was, but.

32
00:02:35,920 --> 00:02:40,940
And it was kind of like the most Chinese statement ever. It was like, you know, this is not a ban,

33
00:02:41,680 --> 00:02:47,600
which, you know, in my experience is, you know, is it a ban or is it not a ban? You know,

34
00:02:47,600 --> 00:02:56,100
So one of my best sources on China, a friend of mine goes, is it a ban or is it not a ban?

35
00:02:56,640 --> 00:02:58,180
Yes, that's the answer.

36
00:02:58,560 --> 00:03:00,840
That's how the Chinese negotiate.

37
00:03:00,840 --> 00:03:07,320
But when you really read what they said, apparently it's about the weapons.

38
00:03:08,080 --> 00:03:09,480
It's a ban on weapons.

39
00:03:09,760 --> 00:03:16,260
We're not going to supply rare earths to the U.S. Defense Department to make weapons to point missiles at us and our friends anymore.

40
00:03:16,260 --> 00:03:20,760
and you know the rest of and it was interesting because the u.s

41
00:03:20,760 --> 00:03:24,900
spun it as hey they're shutting everybody off and the chinese said no no no and so then there was

42
00:03:24,900 --> 00:03:30,200
you know trump taco'd china taco'd or china china backed or de-escalated

43
00:03:30,200 --> 00:03:34,740
it spun as mutual de-escalation um which it was

44
00:03:34,740 --> 00:03:45,780
and i think there is still not the recognition there was a moment of recognition in the west of

45
00:03:45,780 --> 00:03:51,420
oh my gosh, they can shut down everything, which, yeah, we've known that all along,

46
00:03:51,500 --> 00:03:54,680
if you were honest, you know, if people are honest about things.

47
00:03:55,040 --> 00:03:57,020
And not that it wouldn't hurt them too, it would.

48
00:03:57,920 --> 00:04:02,380
But I think the most important thing is they're done selling weapons to the U.S. Defense Department.

49
00:04:02,380 --> 00:04:07,640
They're done selling rare earths into weapons systems for the U.S. Defense Department,

50
00:04:07,840 --> 00:04:14,820
which is enormous and I think still not fully digested.

51
00:04:14,820 --> 00:04:21,500
You know, it might be being digested by the gold market this morning, which is up $110 as we speak, over $4,100 on the futures.

52
00:04:23,420 --> 00:04:28,800
But that's got a lot more to go, in my opinion, to properly digest that message.

53
00:04:29,000 --> 00:04:41,300
So I think it's really important in terms of what just transpired because it's – they're basically saying we're done selling rare earths into Western defense systems.

54
00:04:41,580 --> 00:04:42,560
You know, get your own rare earths.

55
00:04:42,560 --> 00:04:51,400
Yeah, it seems like China feels like it is in a good position. It seems like there's been some

56
00:04:51,400 --> 00:04:57,720
coordinating in the background to get to this point where they feel confident to plant these

57
00:04:57,720 --> 00:05:04,860
flags in the ground and draw these lines in the sand, if you will. And it pertains to the gold

58
00:05:04,860 --> 00:05:10,280
market, particularly what they've been doing with the Shanghai exchange, putting the gold on warrant.

59
00:05:10,280 --> 00:05:22,680
And it seems like I had a conversation with Vince Lancey on Friday, and he made a really good point, is like they're essentially setting up this parallel settlement network that settles in gold.

60
00:05:22,820 --> 00:05:33,140
And it seems like the last six, eight months have really been greasing, greasing the wheels, getting the slopes ready for that.

61
00:05:33,260 --> 00:05:37,960
It's on. And now they can posture geopolitically from a position of strength.

62
00:05:37,960 --> 00:05:51,380
Yeah, I think that's exactly right. And, you know, historically, if you messed with the monetary side of the rules-based global order, the U.S. would send the military over and kick your head in.

63
00:05:51,380 --> 00:06:01,580
That's it. It has a big part of why Saddam was invaded, a big part of of of what Gaddafi was doing, as we know from Hillary's emails once upon a time.

64
00:06:02,040 --> 00:06:14,040
And the Chinese have been doing this. And so they've they've seen the message, which is when we try to change, which they have to, because, again, they're not doing it because they hate us.

65
00:06:14,040 --> 00:06:24,620
They're doing it because they will literally have a late 1990s Southeast Asia crisis where China collapses like you saw Southeast Asia do if they don't do this.

66
00:06:25,260 --> 00:06:33,500
And so they have understood the order of operations, which is if we're going to do this, we need to make it impossible for the U.S. to come over here and kick our heads in.

67
00:06:34,500 --> 00:06:38,100
And that's what this is about.

68
00:06:38,940 --> 00:06:51,900
And to me, the rare earth card being played in April or May, whenever that was, and we wrote about it at the time, is essentially we're done selling rare earths to the U.S. military.

69
00:06:52,640 --> 00:06:54,180
That was my interpretation of it then.

70
00:06:54,260 --> 00:06:55,600
This institutionalized it.

71
00:06:55,680 --> 00:06:57,700
This is basically it's now in black and white.

72
00:06:58,120 --> 00:07:03,380
And if that's the case, then the window is wide open for the system to be reset.

73
00:07:03,380 --> 00:07:19,580
And I think sort of, you know, number one A on the list of symptoms that you would see as the system is reset in a manner that China, Russia, the BRICS would like is I think you'll come in and you'll see the price of gold up on every day that ends in Y.

74
00:07:20,200 --> 00:07:23,320
And that's what we've been seeing over the last month or so.

75
00:07:24,120 --> 00:07:25,260
Today, no exception.

76
00:07:25,500 --> 00:07:28,360
So, yeah, I think it's I think it's a huge deal.

77
00:07:28,360 --> 00:07:42,120
You know, I do think that, you know, Trump with his tweets, when he's when he is when he tweets impulsively or posts impulsively, he usually gives you something that he probably shouldn't either or that, you know, that is incremental information.

78
00:07:42,120 --> 00:07:47,200
So last week, there's a very serious people saying, hey, we're hearing she had a stroke.

79
00:07:47,300 --> 00:07:48,780
We're hearing she's being deposed.

80
00:07:48,900 --> 00:07:52,900
Well, Trump just told you that she had a bad day and made a mistake.

81
00:07:52,900 --> 00:07:59,660
So she didn't have a stroke and did not get deposed per the president of the United States and his post.

82
00:08:01,380 --> 00:08:10,700
And then the other thing is we have heard chapter and verse from Trump, Besant, Lutnik, over and over about how we have all the leverage.

83
00:08:11,540 --> 00:08:13,380
That post just told us, no, we don't.

84
00:08:13,940 --> 00:08:20,300
Now, again, that's not a surprise per se, but that takes us from denial of the denial

85
00:08:20,300 --> 00:08:25,880
stage of grief about who actually has what level of relative leverage into somewhere

86
00:08:25,880 --> 00:08:27,560
between anger and bargaining, right?

87
00:08:27,900 --> 00:08:29,980
It's, you know, he threw his fit.

88
00:08:30,100 --> 00:08:33,020
Then he's like, well, it'll be, you know, we're not, we don't want to put China into

89
00:08:33,020 --> 00:08:35,720
depression and we don't want to put ourselves into depression.

90
00:08:35,960 --> 00:08:36,680
That's exactly right.

91
00:08:36,720 --> 00:08:37,900
We put them both into depression.

92
00:08:38,500 --> 00:08:40,940
So, you know, let's deescalate.

93
00:08:40,940 --> 00:08:48,560
But again, I think it masks the number one key thing, which is we've got to find our own rare earths for our own weapons systems.

94
00:08:50,300 --> 00:08:50,460
Yeah.

95
00:08:51,200 --> 00:08:59,440
It's either that or – because I had somebody who's very well-versed on China has lived over there for 30 years, an American.

96
00:09:01,300 --> 00:09:04,600
And I asked him, like, what is the solution to this?

97
00:09:04,600 --> 00:09:07,420
And the U.S. and China gets to the table.

98
00:09:07,420 --> 00:09:15,400
The U.S. basically acknowledges that China is an equal, apparently from a social perspective, from a cultural perspective.

99
00:09:15,400 --> 00:09:18,820
That's what China wants most, just to be viewed as an equal.

100
00:09:19,320 --> 00:09:30,880
And I think with the leverage you just described that China has over us, that may be sort of the necessary pride swallowing that needs to happen to try to figure this out moving forward.

101
00:09:30,880 --> 00:09:37,040
yeah i think it ends up being a really good thing for the world if if you know the two big powers

102
00:09:37,040 --> 00:09:45,500
stop fighting um and you know there's a version of this that can go really well a version that

103
00:09:45,500 --> 00:09:53,860
can go really badly um but i i you know and again it's all it's it's not to say china won't be hurt

104
00:09:53,860 --> 00:10:00,660
by this china would be hurt by by that as well the challenge is that like we know the treasury

105
00:10:00,660 --> 00:10:07,760
market will blow up in five to seven days, trading days, if there's a hard divorce, whereas China

106
00:10:07,760 --> 00:10:12,580
probably would be able to hunker down and be all right for five to seven months.

107
00:10:14,960 --> 00:10:19,760
And we know that empirically because we saw it happen in April. Treasury market after Liberation

108
00:10:19,760 --> 00:10:26,080
Day went exactly seven trading days, and then that led to the first Trump taco. So it's all about

109
00:10:26,080 --> 00:10:31,800
that sort of relative dynamic. We also know from May and June, after 11 days of medium-intensity

110
00:10:31,800 --> 00:10:38,540
combat, the U.S. chewed through 15% of its high-end air defense missiles, defending Israel

111
00:10:38,540 --> 00:10:49,060
from Iranian drones. And we've also heard that the Chinese can produce 4,000 cruise missile

112
00:10:49,060 --> 00:10:56,680
motors a week, which compares to 6,000 roughly, reportedly, Tomahawk cruise missiles and inventory

113
00:10:56,680 --> 00:11:03,940
total. So they can produce our entire inventory every week and a half in a very automated fashion.

114
00:11:03,940 --> 00:11:09,520
So with rare earth, those supplies would be run, you know, would be run down even faster. So there

115
00:11:09,520 --> 00:11:17,040
is a, all supply chain bottlenecks are not equal, right? You can look at, you know, what's our GDP,

116
00:11:17,040 --> 00:11:23,580
what's their GDP, whatever. Those metrics are interesting, but in the end, in things like this,

117
00:11:23,620 --> 00:11:27,360
it's all about the marginal metric, right? Think about this. There was a headline NFT

118
00:11:27,360 --> 00:11:33,580
yesterday saying the U.S. Defense Department is out buying a billion dollars worth of critical

119
00:11:33,580 --> 00:11:37,660
minerals. People are like, wow, that's like four times what we use every year. We're good,

120
00:11:37,720 --> 00:11:43,020
but I think it misses a message. One billion of critical minerals, 250 million a year of critical

121
00:11:43,020 --> 00:11:50,820
minerals of inputs, which the removal of that shuts down a trillion dollar a year military,

122
00:11:51,520 --> 00:11:53,800
most powerful military in the world, right?

123
00:11:53,840 --> 00:11:57,420
It's like the old poem, you know, for lack of a, for lack, for want of a nail, right?

124
00:11:57,460 --> 00:11:58,400
For want of a nail.

125
00:11:58,700 --> 00:12:02,040
And that's the nail in this case is the critical minerals.

126
00:12:02,940 --> 00:12:03,060
Yeah.

127
00:12:04,300 --> 00:12:09,900
Well, moving this back to gold with the price going up to, it was another interesting thing

128
00:12:09,900 --> 00:12:15,240
that Vince Lancey brought up during our conversation on Friday

129
00:12:15,240 --> 00:12:19,480
was that there's a lot of people in the Western pundit space,

130
00:12:19,620 --> 00:12:22,300
particularly FinTwit, that believes in the dollar milkshake theory

131
00:12:22,300 --> 00:12:26,520
that everything will fail up into the dollar in the U.S. Treasury market.

132
00:12:26,520 --> 00:12:29,820
But this situation in the gold market,

133
00:12:29,960 --> 00:12:33,080
particularly creating this parallel settlement network

134
00:12:33,080 --> 00:12:36,320
via Shanghai Gold Exchange and other BRICS nations

135
00:12:36,320 --> 00:12:39,660
spinning up their bolts, really throws a wrench

136
00:12:39,660 --> 00:12:45,980
in that thesis, which is that can potentially not happen

137
00:12:45,980 --> 00:12:48,740
if you have this alternative settlement network

138
00:12:48,740 --> 00:12:49,620
that people can leverage.

139
00:12:51,220 --> 00:12:55,080
And do you think the price going up, up $110 today,

140
00:12:55,680 --> 00:12:58,920
many people are focusing on China specifically,

141
00:12:59,140 --> 00:13:03,320
but I think everybody in the geopolitical landscape

142
00:13:03,320 --> 00:13:05,260
is looking at what's happening right now and saying,

143
00:13:05,340 --> 00:13:06,840
okay, I got to get some gold.

144
00:13:07,000 --> 00:13:07,860
I got to get some silver.

145
00:13:07,860 --> 00:13:12,660
There's apparently a silver shortage going on right now.

146
00:13:13,160 --> 00:13:17,180
I don't know how legitimate that is, but at least the narrative's out there.

147
00:13:19,440 --> 00:13:28,040
Yeah, I think Brent's milkshake theory is absolutely correct around initially gold going up with the dollar.

148
00:13:28,040 --> 00:13:42,040
Something I posted a long time ago on X and people familiar with the FOFOA blog and the readings of monetary theorist another and friend of another will recall that in the late 1990s,

149
00:13:42,040 --> 00:13:55,820
90s, another friend of another said that when the dollar system is coming to the end of its life,

150
00:13:56,460 --> 00:14:01,980
you will see the dollar and gold rise together. That will be the sign that the dollars,

151
00:14:02,460 --> 00:14:06,000
because people will be getting squeezed into the dollar at one hand, but they'll also be getting

152
00:14:06,000 --> 00:14:10,580
out and going into gold. And so when those two things are rising together, that's the symptom

153
00:14:10,580 --> 00:14:12,160
of the end of the dollar system.

154
00:14:12,340 --> 00:14:14,560
That was said 30 years ago, almost 25 years ago.

155
00:14:16,140 --> 00:14:21,660
And so, yes, the milkshake theory will see the dollar squeeze higher.

156
00:14:21,880 --> 00:14:22,520
I get it.

157
00:14:23,000 --> 00:14:24,800
And gold as well.

158
00:14:25,700 --> 00:14:32,760
And gold, once it hits critical tipping point of price, and I don't know where that price

159
00:14:32,760 --> 00:14:36,520
is, but you can see hints of it.

160
00:14:36,520 --> 00:14:42,940
Albert Marco on X has said, hey, above $3,000 on gold, it starts to create a problem for the

161
00:14:42,940 --> 00:14:48,360
dollar. He was right. The dollar went down to 96. It says above $5,000 on gold, it creates a problem

162
00:14:48,360 --> 00:14:55,960
for the dollar and for the treasury market. He's probably going to be right. And the point here,

163
00:14:55,960 --> 00:14:59,400
or what he's saying when he says that is ultimately,

164
00:14:59,400 --> 00:15:05,500
yes, there is this, you know, we've talked about this, you know, $13 trillion dollar

165
00:15:05,500 --> 00:15:11,460
denominated liability out there, right? In terms of foreign borrowed dollar debt,

166
00:15:11,560 --> 00:15:27,063
that when the dollar goes up it squeezes people into that It forces them to sell treasuries It forces them to sell U equities to raise the dollars to get that Well once the price of gold gets high enough it starts to fully collateralize their

167
00:15:27,063 --> 00:15:34,582
dollar liability on the other side. And suddenly, it starts to provide the liquidity. It starts to be

168
00:15:34,582 --> 00:15:43,822
the sink. And that is how you circumvent. Gold is how you get out of the dollar system. And that's

169
00:15:43,822 --> 00:15:48,362
why another or a friend of another said all those years ago, when you see them go up together,

170
00:15:48,362 --> 00:15:54,942
that means the dollar is coming to its end of life. This present form of this dollar system

171
00:15:54,942 --> 00:15:58,683
is coming to the end of life. Now, does it mean the dollar is going to die? No. I'll be using

172
00:15:58,683 --> 00:16:03,423
dollars and you're and my grandkids and great grandkids will still be using dollars. They're

173
00:16:03,423 --> 00:16:12,423
just going to buy us a lot less. And certainly in gold terms. De facto, we can see gold with

174
00:16:12,423 --> 00:16:18,082
today's price move has overtaken treasuries in global central bank reserves, right? So there are

175
00:16:18,082 --> 00:16:22,362
now, there's now more gold in global central bank reserves than there are U.S. treasuries.

176
00:16:23,082 --> 00:16:28,622
How do you sit there and argue and say, you know, it's not overtaken the dollar in the system?

177
00:16:29,022 --> 00:16:34,602
To me, that's crazy. Now, will people still use dollars? Of course. That's just Gresham's law,

178
00:16:34,602 --> 00:16:40,322
right? I hear people say, well, it's still dominant. 90% of currency usage, that's dollar

179
00:16:40,322 --> 00:16:45,082
dominance. Great. So you're spending, you know, you're telling me it's the bad currency, right?

180
00:16:45,962 --> 00:16:51,683
I will, I'll spend dollars all day long because there's a terrible store of value. But if the

181
00:16:51,683 --> 00:16:57,362
whole change of structure we've been talking about for years, and I mean, if you watch all my posts,

182
00:16:57,442 --> 00:17:00,763
all my pockets, everything I've ever said, I've never said end of dollar reserve status. It's

183
00:17:00,763 --> 00:17:09,922
end of the post 71 structure of dollar reserve status, which is dollar as primary reserve currency

184
00:17:09,922 --> 00:17:17,602
treasury bond as primary reserve asset. It happened. It's happened. The dollar is still

185
00:17:17,602 --> 00:17:23,822
primary reserve currency, but gold is now primary reserve asset as of probably this morning with the

186
00:17:23,822 --> 00:17:32,763
$100 move. And I don't think it's ever going back unless she suddenly decides to be Yeltsin

187
00:17:32,763 --> 00:17:38,983
and sell off his country for pennies on the dollar to American corporate and Washington

188
00:17:38,983 --> 00:17:46,742
interests and Putin decides to do the same thing because we can't go to war to stop him.

189
00:17:47,523 --> 00:17:49,102
The rare earth thing ensures it.

190
00:17:50,242 --> 00:17:52,443
Yeah, that doesn't seem very likely.

191
00:17:53,523 --> 00:17:59,682
And I guess, I mean, that begs the question, like, what does the U.S. do in reaction to

192
00:17:59,682 --> 00:17:59,922
this?

193
00:17:59,983 --> 00:18:04,263
I mean, there was many that were surmising in the beginning of the year we're calling

194
00:18:04,263 --> 00:18:09,703
gold in kind back where we were calling gold from vaults internationally into the U.S.,

195
00:18:09,703 --> 00:18:12,623
seeing what China was doing and others in preparation.

196
00:18:13,023 --> 00:18:19,422
Obviously, there was the Genius Act getting passed here in the United States and the Trump

197
00:18:19,422 --> 00:18:23,203
administration and the advisors around the administration are saying this is how we're

198
00:18:23,203 --> 00:18:25,502
going to save the treasury market.

199
00:18:25,502 --> 00:18:29,223
We're going to take advantage of the fact that the U.S. dollar is the preferred currency

200
00:18:29,223 --> 00:18:33,803
globally and try to flood markets with it with this new technology.

201
00:18:34,263 --> 00:18:42,043
in stable coins and stable coin issuers will have to buy treasuries. But it seems like we've

202
00:18:42,043 --> 00:18:47,523
got to also at the same time expedite this reshoring of manufacturing if we want to

203
00:18:47,523 --> 00:18:50,502
sort of inoculate ourselves from these external factors.

204
00:18:52,362 --> 00:18:55,182
Yeah. And, you know, I think the stable coin thing can work.

205
00:18:57,162 --> 00:19:00,842
But let's call it what it is, right? This is this is like, you know,

206
00:19:00,842 --> 00:19:07,763
Operation Iraqi Freedom, right? Well, you know, or, you know, the Affordable Care Act, right?

207
00:19:08,602 --> 00:19:15,703
Or, you know, whenever the government names something, you should sort of, like, assume

208
00:19:15,703 --> 00:19:22,082
it's the opposite of what it is. And you're usually closer to the truth. And so let's call

209
00:19:22,082 --> 00:19:28,922
the stablecoin gambit for what it is. They should have called it, we can't issue bonds

210
00:19:28,922 --> 00:19:35,862
at the long end of the curve in sufficient amounts at prices that don't blow up our debt anymore.

211
00:19:36,642 --> 00:19:44,342
So we are issuing and refinancing all of our debt in near cash markets. And that's what the

212
00:19:44,342 --> 00:19:48,162
stablecoin thing's about. But of course, that doesn't roll off the tongue quite as nicely as

213
00:19:48,162 --> 00:19:54,102
the Genius Act does it. But that's what they're doing. They are issuing, they're going to finance,

214
00:19:54,102 --> 00:20:07,063
And you can see hints of it when you see Besant get sworn in and immediately double the pace of Treasury buybacks that Yellen was doing, which only started in May of last year, April of last year.

215
00:20:07,602 --> 00:20:12,482
He doubles the pace of Treasury buybacks immediately relative to what she was doing.

216
00:20:13,723 --> 00:20:15,862
And it is heavily skewed.

217
00:20:15,922 --> 00:20:22,742
I won't say almost always, but it's heavily skewed towards issuing short-term paper to replace longer-term paper.

218
00:20:22,742 --> 00:20:24,023
So he's bringing in duration.

219
00:20:24,102 --> 00:20:30,862
And then I hear credible rumblings that, you know, the plan will eventually be once if you can get enough.

220
00:20:33,443 --> 00:20:46,263
If you can get stable coins big enough, right, if you can if this can work, then you will do some form of of of what the U.S. did in the 50s, which is make them not make the T-bills that go into stable coins non marketable.

221
00:20:47,162 --> 00:20:49,982
And say, yeah, they're not four percent.

222
00:20:49,982 --> 00:20:56,502
all stablecoin T-bills yield 50 basis points, 30 basis points, whatever.

223
00:20:57,582 --> 00:21:00,783
Powell will have taken control of the short end of the curve from, or excuse me,

224
00:21:01,123 --> 00:21:03,223
Besson will have taken control of the short end of the curve from Powell,

225
00:21:03,362 --> 00:21:04,822
completely disintermediated him.

226
00:21:05,322 --> 00:21:13,662
But we will be financing massive deficits and the cost of reshoring in near cash markets.

227
00:21:13,963 --> 00:21:19,523
Now, what would I want to own if Besson came out and said,

228
00:21:19,523 --> 00:21:25,563
we are going to reshore and I'm just going to straight print the money to pay it.

229
00:21:26,763 --> 00:21:30,063
What would we see? We'd see gold up. We'd see Bitcoin up. We'd see stocks up.

230
00:21:32,203 --> 00:21:35,723
And we might not see the long end of the curve go up because if he's not issuing any bonds at

231
00:21:35,723 --> 00:21:39,543
the long end, there's a mindless bid for duration. I don't know if it's 400, 500,

232
00:21:39,543 --> 00:21:44,623
600 billion dollars a year from pensions and liability matching like they have to buy no matter

233
00:21:44,623 --> 00:21:49,502
what. And as long as he keeps issuance out there below that number, long end can be relatively well

234
00:21:49,502 --> 00:21:54,023
behaved as we've seen. It doesn't make me want to own it. They're getting killed on a real basis.

235
00:21:54,023 --> 00:21:59,482
But if we saw that, that's how we'd react. If he said that, that's what we'd react. Well,

236
00:22:00,822 --> 00:22:05,203
stable coins to finance large amounts of the deficit, it's just like the kissing cousin of

237
00:22:05,203 --> 00:22:09,362
printing cash to pay for the deficit. Why is it happening? Because it has to.

238
00:22:09,982 --> 00:22:13,822
And that's where we are in this. Like, there's no mystery. You go through the history books

239
00:22:13,822 --> 00:22:16,822
and these great powers that get into debt and have these big seconds.

240
00:22:18,082 --> 00:22:21,982
You start at the long end and you, you know, foreigners, and then you stay at the long end

241
00:22:21,982 --> 00:22:23,322
and you plug domestic.

242
00:22:23,582 --> 00:22:28,742
And then when you run out of that, eventually you end up basically printing money to finance

243
00:22:28,742 --> 00:22:29,283
your deficits.

244
00:22:29,763 --> 00:22:35,543
And we're not quite there yet, but we're, you know, that's what the stable coin gambit

245
00:22:35,543 --> 00:22:35,783
is.

246
00:22:35,883 --> 00:22:37,082
Now, what else can they do?

247
00:22:37,443 --> 00:22:43,783
Look, if he can get the price of gold up a lot, you know, at $20,000 an ounce, if,

248
00:22:43,822 --> 00:22:48,402
If they can do things that make the market bid gold to 20,000, and people used to think

249
00:22:48,402 --> 00:22:52,223
that was insane, but I got to tell you, at 100 bucks a day, it's looking less insane.

250
00:22:53,263 --> 00:22:56,723
50 to 100 bucks a day moves on the upside is looking a lot less insane than it was, say,

251
00:22:56,723 --> 00:22:57,443
six months ago.

252
00:22:57,822 --> 00:23:03,422
But if you can get it to $20,000 an ounce, which, by the way, would only put it back

253
00:23:03,422 --> 00:23:11,482
to 1989, excuse me, it would only put it slightly above the long-term average of gold's price

254
00:23:11,482 --> 00:23:13,162
relative to the foreign portion of our debt.

255
00:23:13,162 --> 00:23:16,642
the gold, the market value of U.S. official gold relative to foreign debt.

256
00:23:17,043 --> 00:23:21,883
$20,000 an ounce would deposit roughly $5 trillion into the Treasury General account,

257
00:23:22,023 --> 00:23:22,463
free and clear.

258
00:23:22,582 --> 00:23:24,263
It's just straight money creation using gold.

259
00:23:24,342 --> 00:23:25,082
It's an accounting entry.

260
00:23:25,342 --> 00:23:26,723
Wouldn't have to sell any gold, whatever.

261
00:23:27,642 --> 00:23:32,303
And then you could buy down a pretty big chunk of debt.

262
00:23:32,402 --> 00:23:33,902
You go out into the market and say, I'm going to, you know,

263
00:23:35,383 --> 00:23:38,842
either he can finance the U.S., you know, the long end needs,

264
00:23:38,842 --> 00:23:45,383
with that $5 trillion for five years at least, probably more like eight years.

265
00:23:45,883 --> 00:23:50,082
Or he could just go in and immediately say, hey, I'm going to buy back $5 trillion worth of the

266
00:23:50,082 --> 00:23:56,383
$29 trillion out. That's going to take down 20% of the market. So debt to GDP is under 100 right

267
00:23:56,383 --> 00:24:01,982
away. Assuming a money multiplier, nominal GDP is probably going to run frigging 15, 20% for a

268
00:24:01,982 --> 00:24:08,303
couple of years. Debt to GDP will be back to 50, 60% in a very short period of time over the backs

269
00:24:08,303 --> 00:24:12,023
of the purchasing power of stablecoin holders around the world.

270
00:24:12,023 --> 00:24:16,023
So they could do that, but boy, they've got to hurry

271
00:24:16,023 --> 00:24:19,602
because, you know, Treasury, interest doesn't sleep.

272
00:24:20,602 --> 00:24:24,322
No, it doesn't. And I was telling you, I've been watching some of your

273
00:24:24,322 --> 00:24:27,883
FFTT videos over the last few days, and

274
00:24:27,883 --> 00:24:32,082
you were mentioning a book, I forget the name of the book,

275
00:24:32,242 --> 00:24:36,303
author's first name is Tobias, talking about 1931, Germany,

276
00:24:36,303 --> 00:24:39,842
and the parallels that exist between today and then.

277
00:24:41,722 --> 00:24:42,922
No, that's exactly right.

278
00:24:43,162 --> 00:24:43,283
Yeah.

279
00:24:43,422 --> 00:24:43,623
Yeah.

280
00:24:43,982 --> 00:24:44,162
Yeah.

281
00:24:44,303 --> 00:24:48,203
And so I think you said it in the video,

282
00:24:48,402 --> 00:24:50,422
like history doesn't repeat, but it certainly rhymes.

283
00:24:50,563 --> 00:24:53,523
And it looks like we have maybe not a playbook,

284
00:24:53,643 --> 00:24:57,742
but some history from 100 years ago that we could look at and say,

285
00:24:57,742 --> 00:24:58,783
hey, this is what's happening.

286
00:24:59,943 --> 00:25:00,722
Yeah, absolutely.

287
00:25:01,143 --> 00:25:03,402
And, you know, it's fascinating.

288
00:25:03,402 --> 00:25:11,002
Between that book and the book Raven of Zurich, the memoirs of Felix Somery, which I own, which is great.

289
00:25:12,803 --> 00:25:15,422
You know, there's a great passage from like 1912.

290
00:25:16,222 --> 00:25:24,102
Somery's writing, a lot of it is his, you know, it's his diary as the world was completely changing, right?

291
00:25:24,143 --> 00:25:26,543
Like you came into 1914 with four empires.

292
00:25:26,543 --> 00:25:32,662
And by 1908, and those four empires had run the world for like 300 years prior.

293
00:25:33,402 --> 00:25:36,742
And within four years, three of the four were gone entirely.

294
00:25:36,742 --> 00:25:47,462
The fourth was wounded and the British Empire had lost 6% of its working age men in the war, had lost its power.

295
00:25:47,602 --> 00:25:51,943
Basically, at that point, it was a debt vassal of the United States.

296
00:25:52,143 --> 00:26:00,203
And so we overtook them as global reserve currency, as global – it was the first step in sort of becoming the global empire.

297
00:26:00,203 --> 00:26:24,862
But it's fascinating. There's this passage where Solmary says, Europe, which was in 1912 full of optimism and pride and power, looked at the Chinese in European capitals with curiosity because they always weighed their money, the silver and the gold.

298
00:26:24,862 --> 00:26:28,102
they would weigh it. They didn't go by denomination, they went by weighing it.

299
00:26:28,662 --> 00:26:33,482
And they thought the Chinese were five generations behind the Europeans. They thought they were,

300
00:26:35,082 --> 00:26:41,462
but in reality, they were a generation ahead. They had the experience and the historical memory

301
00:26:41,462 --> 00:26:47,143
of inflation under Mongol emperors who'd printed a bunch of paper billions and had to suffer through

302
00:26:47,143 --> 00:26:53,182
the consequences. And so that's why the Chinese weighed their silver and gold money in 1912.

303
00:26:53,182 --> 00:26:57,082
and the Europeans thought they were, you know, they were, they were hillbillies, thought they

304
00:26:57,082 --> 00:27:00,602
were behind when they were actually ahead. Now, stop me when this all starts to sound familiar,

305
00:27:00,703 --> 00:27:05,102
right? Like, how often for the last 15 years have we heard how backwards the Chinese are and how

306
00:27:05,102 --> 00:27:09,982
they'll never catch up and this and that? Like, like, here we are, the Chinese have been buying

307
00:27:09,982 --> 00:27:19,082
gold hand over fist for 15 plus years, 18 years. And what have the American, what is the American,

308
00:27:19,082 --> 00:27:25,523
you know wall street financiers power washington laughed at them they're not laughing now are they

309
00:27:25,523 --> 00:27:32,643
they're not laughing at all i think something similar is going to happen yeah and i mean the

310
00:27:32,643 --> 00:27:38,362
i think the only thing you can call it is hubris too that's right that's exactly what it is yeah

311
00:27:38,362 --> 00:27:42,543
but it's like not only from a monetary and economic perspective but from the military

312
00:27:42,543 --> 00:27:46,763
perspective we've been beating our chests like we're the biggest strongest military that's ever

313
00:27:46,763 --> 00:27:52,383
existed on the planet china will never be able to catch up but you threw that stout stat out earlier

314
00:27:52,383 --> 00:27:59,563
they're able to to build uh what is the 4 000 tomahawks per week and that was well not tomahawks

315
00:27:59,563 --> 00:28:04,182
but that's uh from david p goldman who's a very good source on this stuff at asia times he wrote

316
00:28:04,182 --> 00:28:09,803
uh two or three years ago he said that you know that they can reportedly make a 4 000 cruise

317
00:28:09,803 --> 00:28:14,623
missile motors a week cruise missile motors but that then you look at the advancements that they've

318
00:28:14,623 --> 00:28:22,203
had technologically with automation. I think many people in the United States are looking at the

319
00:28:22,203 --> 00:28:28,362
drone technology specifically and saying, oh, that's pretty scary. And you go back to they own

320
00:28:28,362 --> 00:28:35,922
the rare earth, which is the raw input of everything we need. And it's very perplexing that we are

321
00:28:35,922 --> 00:28:40,063
still beating our chest in this way and not showing a bit of humility, like, okay, we messed up. And

322
00:28:40,063 --> 00:28:48,482
It does seem like the Trump administration has recognized, holy crap, we're behind in a lot of ways to China.

323
00:28:48,523 --> 00:28:55,242
But I think they're focused on energy in AI specifically, which rightly so.

324
00:28:55,322 --> 00:28:55,982
I think they should be.

325
00:28:56,123 --> 00:29:05,222
But militarily, things aren't looking relatively good for the U.S. right now either as it pertains to China.

326
00:29:05,222 --> 00:29:09,742
And it's just like, all right, when are we going to swallow our pride?

327
00:29:10,063 --> 00:29:15,623
take the hard medicine and recognize like, Hey, we need to show these, these Chinese some respect

328
00:29:15,623 --> 00:29:22,102
because, uh, you do not want to go to the kinetic warfare route with them. I don't think because

329
00:29:22,102 --> 00:29:28,523
Andrew's CEO was on a podcast with, um, the 16 Z guys last week. And he was saying,

330
00:29:28,523 --> 00:29:34,322
uh, and I think he referenced this into the, some of the missiles we supplied

331
00:29:34,322 --> 00:29:36,342
Israel earlier this year.

332
00:29:36,523 --> 00:29:43,023
Like we can, if five days worth of depleting missiles into war takes two years to build

333
00:29:43,023 --> 00:29:46,222
back that supply, which is astonishing to me.

334
00:29:47,143 --> 00:29:53,222
Yeah, there's a great quote from U.S. Marine Corps General Barrow, you know, amateurs study

335
00:29:53,222 --> 00:29:55,043
tactics, professionals study logistics.

336
00:29:55,462 --> 00:30:02,383
And we've been more focused on tactics and they've been arguably more focused on logistics,

337
00:30:02,383 --> 00:30:08,623
which we can say because two and a half years ago, the CEO of Raytheon was quoted in the Financial

338
00:30:08,623 --> 00:30:14,803
Times saying, we literally can't go to war without Chinese components. And it will be many,

339
00:30:14,902 --> 00:30:21,322
many years to try to replace that. They know it. Who let that happen? Why did that decision happen?

340
00:30:21,383 --> 00:30:24,922
You start pulling on that thread, I think you're going to get some really unpleasant conversations.

341
00:30:24,922 --> 00:30:31,002
And that gets into politics that, quite frankly, I don't want to be involved in because

342
00:30:31,002 --> 00:30:52,325
I yeah I just leave it at that But the hints have been there You really said the right word which is hubris There was an author a guy named Andrei Martianov who was a former Soviet engineer I believe

343
00:30:52,545 --> 00:30:55,045
I believe he was in the Soviet military when the Soviet Union collapsed.

344
00:30:55,045 --> 00:31:00,985
He came here and he advised the U.S. military on all sorts of missile technology, etc.

345
00:31:00,985 --> 00:31:07,205
And he began writing some books a few years back, The Real Revolution in Military Affairs.

346
00:31:07,985 --> 00:31:14,245
And most recently, he wrote one a year and a half ago that was published called America's

347
00:31:14,245 --> 00:31:14,805
Final War.

348
00:31:15,645 --> 00:31:25,425
And the overall thrust of these books was, number one, there is very much a science to

349
00:31:25,425 --> 00:31:25,765
military.

350
00:31:25,845 --> 00:31:29,025
Military sciences, I believe, is a thing.

351
00:31:29,025 --> 00:31:45,865
And, you know, you can run a calculation of, OK, how much growth, how much steel can you produce? How much iron ore can you produce? How much copper can you produce? What is your aggregate BTU output of your energy electrical grid? How many engineers are you graduating a year? What's your manpower?

352
00:31:45,865 --> 00:31:59,225
All of these things can be put together into a calculation that gives you some level of understanding of the ability to prosecute war.

353
00:31:59,305 --> 00:32:01,045
It's a measure of power, hard power.

354
00:32:02,345 --> 00:32:10,025
And in the first book, he laid out like the Russians were so far ahead of the US in that already that it wasn't even close.

355
00:32:10,025 --> 00:32:14,285
And I think people, number one, I don't even think he could get it published in the Western press.

356
00:32:14,285 --> 00:32:20,085
So he went with an independent publisher. You can buy it on Amazon to America's credit, right? It's not censored.

357
00:32:21,785 --> 00:32:23,585
But you read that, you go, huh, interesting.

358
00:32:24,465 --> 00:32:34,225
And then we got a test of that in places like Ukraine, in places like Iran and Israel.

359
00:32:34,225 --> 00:32:45,025
And what you find then is what he lays out in America's final war, which is America doesn't have enough of an industrial base to prosecute a major war.

360
00:32:45,105 --> 00:32:54,145
And the industrial base and installed capacity it has is all in the wrong things because the nature of war has changed.

361
00:32:54,145 --> 00:32:56,605
Think about what technology and AI do.

362
00:32:56,605 --> 00:33:10,225
They allow smaller, less well-capitalized participants to do things just as good with just as broad a reach as big capital.

363
00:33:10,425 --> 00:33:12,305
You and I are sitting here talking.

364
00:33:13,045 --> 00:33:16,085
I was laughing, the whole Jimmy Kimmel thing.

365
00:33:16,245 --> 00:33:17,465
I was looking at his numbers.

366
00:33:17,745 --> 00:33:21,125
I have podcasts that have better numbers than he was getting every night.

367
00:33:21,125 --> 00:33:26,125
I'm like, look at the commercial, the new Apple iPhone commercial.

368
00:33:26,125 --> 00:33:30,765
right? What do they have? They have an iPhone and a case with real filmmakers using it to film.

369
00:33:31,925 --> 00:33:39,165
This is what technology, and this is what Andrei Martianov was saying. It's like,

370
00:33:39,865 --> 00:33:49,185
the Americans have all of this sunk cost into these weapons platforms that aren't the right

371
00:33:49,185 --> 00:33:54,305
weapons platforms. They're not going to fare well in war. Eric Prince, a former CEO of Blackwater,

372
00:33:54,305 --> 00:33:59,185
said it back in February in a speech. He said, if we sailed a carrier, a carrier group over to

373
00:33:59,185 --> 00:34:06,065
Taiwan to try to blockade it, we would see it on the news, smoking or worse, because it has changed.

374
00:34:06,225 --> 00:34:11,285
The nature of warfare has changed drones, hypersonic missiles, etc. And they've known this

375
00:34:11,285 --> 00:34:17,705
for at least, first time I heard about it was in 2018 at a private conference, which means they've

376
00:34:17,705 --> 00:34:25,505
known about this for at least 10 years, at least, and probably more. But the political reality,

377
00:34:25,625 --> 00:34:28,745
right? Like the Philadelphia shipyards, right? Historically, a big naval shipyard.

378
00:34:29,785 --> 00:34:33,185
There's a bunch of ships being built there, or that in theory could be built there that

379
00:34:33,185 --> 00:34:37,725
aren't the right things to build anymore, right? But you're going to go to the senator from,

380
00:34:37,725 --> 00:34:40,785
you know, from Pennsylvania and go, we're going to shut down the Philly shipyards and

381
00:34:40,785 --> 00:34:46,305
turn it into some sort of missile works or drone works? Come on. That's not how this country works.

382
00:34:46,305 --> 00:34:55,485
And that's the challenge is there's this inertia around the installed base where the incumbent has a disadvantage.

383
00:34:55,845 --> 00:34:57,385
And that's what we've been watching.

384
00:34:58,685 --> 00:35:11,345
Yeah, the Philadelphia Navy is the headquarters of anthropology now, which is one of the favorite stores of upper middle class white women in the United States.

385
00:35:11,485 --> 00:35:13,905
But it's a far cry from where it was.

386
00:35:13,905 --> 00:35:17,885
That might be the perfect metaphor for why we can't go to war.

387
00:35:19,985 --> 00:35:24,185
We used to make destroyers there and now we outfit.

388
00:35:24,865 --> 00:35:25,405
Cute dresses.

389
00:35:25,705 --> 00:35:26,665
It's cute dresses now.

390
00:35:28,725 --> 00:35:32,845
Well, with this in mind, I think there has been a recognition.

391
00:35:34,845 --> 00:35:40,105
A lot of people have their thoughts about the sort of Silicon Valley tech elite.

392
00:35:40,105 --> 00:36:00,425
But I think if you look at companies like Andrel and there there is a big focus on providing startup capital to industrial base focus companies there was a company named base that just spun up a factory in the center of Austin in the old Austin.

393
00:36:00,425 --> 00:36:06,365
in, I forget, the Austin Times factory right on Congress Ave.

394
00:36:06,725 --> 00:36:07,545
That shut down.

395
00:36:08,205 --> 00:36:14,305
Obviously, Andrew is focused on drone technology and anti-drone technology.

396
00:36:15,005 --> 00:36:20,305
There's a sort of metal fabricating startup that's based out of Michigan.

397
00:36:20,305 --> 00:36:26,905
So it seems like at least some part of the investment class here in the United States

398
00:36:26,905 --> 00:36:29,365
recognizes that we have this weakness in the private markets,

399
00:36:29,365 --> 00:36:31,565
trying to solve these problems.

400
00:36:31,825 --> 00:36:36,465
On that note, what, if anything, are we doing right right now?

401
00:36:36,465 --> 00:36:42,605
And where do you think we should be focusing in sort of deploying capital

402
00:36:42,605 --> 00:36:44,045
to fix these problems?

403
00:36:45,245 --> 00:36:51,185
Well, it's just, I think those things are the right thing to do.

404
00:36:51,185 --> 00:37:08,305
And I think we also need to be subsidizing in a major way metallurgy trades, metallurgy degrees, rare earth refining degrees, which doesn't even really exist in America.

405
00:37:08,425 --> 00:37:10,785
I'm told 33 different Chinese universities have them.

406
00:37:11,045 --> 00:37:11,725
America has zero.

407
00:37:12,985 --> 00:37:17,665
Engineering degrees, skilled trades should all be being subsidized majorly.

408
00:37:17,665 --> 00:37:28,185
In other words, like you don't pay to go to school and, you know, you come out and you're going to be making, I don't know, more than a first year, more than a third year Wall Street banker, something like that.

409
00:37:28,205 --> 00:37:32,965
Right. Guaranteed by the U.S. government because you've got to get the labor there.

410
00:37:33,225 --> 00:37:45,965
There's, you know. As an American, why would I go like study really hard, not get to drink a bunch of beer when I could go into finance and come out and trade crypto and make way more money than someone who's actually helped build stuff?

411
00:37:45,965 --> 00:37:56,965
And I say this with being one of those guys that went to college and made the choice in 1993 to drink a bunch of beer and not have to study as hard as engineering guys and make more money.

412
00:37:57,265 --> 00:38:01,325
Like that's that's that's what the dollar system as structure does.

413
00:38:01,385 --> 00:38:02,705
That is 100 percent.

414
00:38:03,345 --> 00:38:07,065
Everybody else makes stuff and then they send the money here and we move the money around.

415
00:38:07,625 --> 00:38:12,365
And like that's that system is at the it's well beyond the end of its useful life.

416
00:38:12,365 --> 00:38:16,665
And I say that because like we are doing some things right.

417
00:38:16,765 --> 00:38:19,365
But now, again, go back to the first part we talked about.

418
00:38:19,745 --> 00:38:22,045
If the Chinese aren't sending rare earth stuff here.

419
00:38:24,325 --> 00:38:26,125
That's like that's the hardest part.

420
00:38:27,385 --> 00:38:28,425
That's the hardest part.

421
00:38:28,465 --> 00:38:33,045
And it takes a long time to sort of build the infrastructure for that.

422
00:38:33,045 --> 00:38:39,785
So, you know, we need to we need to go to like Manhattan Project Speed on that in terms of because, you know,

423
00:38:39,785 --> 00:38:43,225
it would be a good question for someone to ask Palmer Lucky to Anderil the next time he's doing

424
00:38:43,225 --> 00:38:49,165
an interview is, hey, if the Chinese cut off all batteries and all magnets and all rare earth

425
00:38:49,165 --> 00:38:55,025
inputs to what you're doing, how many things can you produce a year? And I think he's gonna,

426
00:38:55,805 --> 00:38:59,605
I don't think people are gonna like the answer. And I say that because we've seen stories over the

427
00:38:59,605 --> 00:39:04,025
last six to nine months of like, hey, we tried to build our own batteries for these drones,

428
00:39:04,025 --> 00:39:08,125
not from Anderil specifically, but from other people in that supply chain in that world.

429
00:39:08,125 --> 00:39:13,465
they said we couldn't do it we had to buy them from China they weren't as good and so it's not

430
00:39:13,465 --> 00:39:21,245
there I think there needs to be some reality around you know this right that right now I'm

431
00:39:21,245 --> 00:39:24,905
still seeing the bargain like well fine we'll just do it ourselves you know we're America we'll just

432
00:39:24,905 --> 00:39:33,945
do it ourselves yes but no one everyone's like we'll just take a year or two I'm like so the

433
00:39:33,945 --> 00:39:40,525
Chinese did this, you know, China launched, you know, we wrote on Friday, like China launched

434
00:39:40,525 --> 00:39:46,225
China 2025 and 2015. And most of Wall Street laughed at them. They're not laughing now.

435
00:39:46,825 --> 00:39:51,425
But it took the Chinese with all of the sort of things that they do that we have a hard time

436
00:39:51,425 --> 00:39:57,225
doing, right? Centrally planned, some level of, you know, forcing competition, massive subsidies,

437
00:39:57,805 --> 00:40:03,185
closed capital account, all the things you have to do to do that. And it took them 10 years.

438
00:40:03,185 --> 00:40:13,385
And we're trying to do something orders of magnitude bigger with less engineers, less workforce.

439
00:40:14,265 --> 00:40:19,005
And oh, by the way, an engineering and skilled trades workforce that is like a declining option.

440
00:40:19,065 --> 00:40:24,665
In other words, it's a decaying asset because, you know, we got another six to eight years.

441
00:40:24,905 --> 00:40:29,245
And the last generation that was really an engineering and skilled trades, they're going to be aging out every year.

442
00:40:29,245 --> 00:40:36,605
so like we're on the clock and we so what else can we do we we have recognized the problem

443
00:40:36,605 --> 00:40:44,205
and we are taking some steps we aren't nearly aggressive enough we need you know i will say we

444
00:40:44,205 --> 00:40:49,525
are on the right path when i'm seeing stories in the wall street journal about welders making 500

445
00:40:49,525 --> 00:40:56,385
600 000 a year coming out of welding school and being able and you know what it's gonna be

446
00:40:56,385 --> 00:40:59,905
inflationary to so inflationary, which means guess what?

447
00:41:00,065 --> 00:41:03,865
The Fed's going to have to put the entire bond market on their books.

448
00:41:06,645 --> 00:41:09,145
Great. You know, that's, that's, that's how this has to go.

449
00:41:09,245 --> 00:41:10,665
That's what they have to do. And you know,

450
00:41:10,705 --> 00:41:12,885
what's that going to do to the dollar going to get waylaid.

451
00:41:14,345 --> 00:41:17,505
Guess what? We offshored this stuff to support the dollar.

452
00:41:17,505 --> 00:41:20,685
Why do people think that bringing it back can be done without waylaying the

453
00:41:20,685 --> 00:41:23,025
dollar? It's astonishing to me. It's the most like,

454
00:41:24,545 --> 00:41:26,165
when you put it that way, it's very simple.

455
00:41:26,385 --> 00:41:28,965
It's very simple. It's very simple.

456
00:41:29,925 --> 00:41:41,765
And it's I mean, as you're describing that, I'm just thinking in my mind of how polarized political landscape in the United States is here domestically.

457
00:41:42,005 --> 00:41:46,605
And anything Trump tries, even if Trump woke up, he's like, all right, Luke, I hear you.

458
00:41:47,145 --> 00:41:50,125
We're going to go do it. The amount of backlash you would get.

459
00:41:50,125 --> 00:41:55,945
And he calls for calling him like an authoritarian fascist.

460
00:41:56,225 --> 00:41:56,565
That is.

461
00:41:56,785 --> 00:41:58,465
That's the challenge, I think, too, right?

462
00:41:58,465 --> 00:42:02,285
Because this is like an this is an orthogonal multidisciplinary problem.

463
00:42:02,425 --> 00:42:05,065
And that's that's we, you know, the politics of it, right?

464
00:42:05,065 --> 00:42:13,905
Like half of this, you know, without getting into it, like we can't agree on certain scientific facts.

465
00:42:13,905 --> 00:42:23,005
Half the country thinks, you know, you know, Dr. What's-his-name is a national treasure and half think he's not.

466
00:42:23,965 --> 00:42:33,245
Half, you know, half people, you know, the immigration situation is there's no, we are so polarized.

467
00:42:35,505 --> 00:42:41,185
You know, and if you get, you know, if Trump and the Republicans lose the next election, it's still going to be polarized.

468
00:42:41,185 --> 00:42:43,145
It's just going to be in the opposite direction.

469
00:42:43,145 --> 00:43:00,605
And so that's the other thing, too, right? Like people say we just need to do what we did in 1940. 1940? You had like, number one, we didn't really have a bunch of foreign engagements. We didn't have a bunch of foreign influence running Washington.

470
00:43:00,605 --> 00:43:05,565
We had been basically like we had just kind of come on the national stage, number one.

471
00:43:05,665 --> 00:43:13,305
So we didn't have a bunch of like, hey, you can't take that money away from the war you're supporting over here to build a factory base.

472
00:43:14,185 --> 00:43:17,445
Right. There was no such thing. It was all focused here.

473
00:43:18,225 --> 00:43:21,205
Number two, you had a huge skilled trade base.

474
00:43:21,425 --> 00:43:26,465
And oh, by the way, 20 percent of them were unemployed and had been for 10 years.

475
00:43:26,465 --> 00:43:35,085
So like if like they just needed the rallying cause and we were sort of a very much more unified country, you go, oh, yeah, let's go.

476
00:43:35,205 --> 00:43:39,325
We can build this now. It's like apples and zebras.

477
00:43:39,465 --> 00:43:42,945
How different all of that is on every angle, politically, domestically.

478
00:43:43,725 --> 00:43:49,845
So, you know, again, I think step one is, you know, OK, we admit the problem, but now you've got to be realistic.

479
00:43:49,845 --> 00:43:54,245
Right. It's like, OK, well, I'm 500 pounds and I'm smoking and I have a heart condition.

480
00:43:54,245 --> 00:43:57,865
and, you know, people like, well, we're America.

481
00:43:57,985 --> 00:44:00,365
We're just going to go, you know, we're going to run an Ironman next week.

482
00:44:00,985 --> 00:44:03,145
You're like, what are you talking about?

483
00:44:03,645 --> 00:44:04,805
What are you talking about?

484
00:44:05,025 --> 00:44:09,945
Like the first step is like get off the couch, stop smoking, like walk to the sink,

485
00:44:10,365 --> 00:44:12,565
make yourself something healthy and walk back.

486
00:44:12,945 --> 00:44:15,225
And then next week, if you don't die of a heart attack,

487
00:44:15,225 --> 00:44:18,265
then you walk to the mailbox and you come back.

488
00:44:18,645 --> 00:44:23,785
And I mean, there's just a time aspect to this that, you know, again,

489
00:44:24,245 --> 00:44:29,645
If we don't have a time machine, the time aspect has to be paid.

490
00:44:30,825 --> 00:44:40,485
It almost feels like there needs to be a propaganda campaign, a good propaganda campaign to really introduce the concept of low time preference.

491
00:44:40,485 --> 00:44:52,525
I think that's very disconcerting about the current state of America is that we live in a high-velocity trash economy where everything is, what did you do for me yesterday?

492
00:44:52,745 --> 00:44:53,825
What are you doing for me today?

493
00:44:53,825 --> 00:45:03,325
What's your quarterly financial stay saying and basically reacting and then gets even more distilled to the 24 hour news cycle?

494
00:45:03,765 --> 00:45:09,605
Yeah, I thought that what Besson announced about what was a six month reporting versus quarterly, like a lot of people on Wall Street.

495
00:45:09,725 --> 00:45:12,565
Oh, here comes more fraud. And I actually thought that was a really good.

496
00:45:12,725 --> 00:45:18,325
That's a really good idea. Like report every six months, report every like the amount of effort.

497
00:45:18,325 --> 00:45:28,025
Having been on the sell side for 15 years investment research, the amount of effort alone that is wasted on quarterly reporting is like mind boggling.

498
00:45:28,125 --> 00:45:34,465
You have like the most brilliant minds in America, like reading the release, getting on the call, asking the comment, hey, good quarter, guys.

499
00:45:34,625 --> 00:45:38,525
And like rather than, hey, here's an idea for raising capital.

500
00:45:38,645 --> 00:45:40,245
Here's an idea for building a factory.

501
00:45:40,325 --> 00:45:42,145
Here's like it's insane.

502
00:45:42,145 --> 00:45:46,405
So I thought like that's a good like that's a good little baby down payment.

503
00:45:46,405 --> 00:45:50,605
But like, you know, it's like, let's keep that going.

504
00:45:51,505 --> 00:45:51,685
Yeah.

505
00:45:51,805 --> 00:46:05,468
No as somebody sits on the board of a publicly traded company like the amount of sunk cost or opportunity costs that spent focusing on quarterly financials is like you finish the financials for Q1 and then three weeks later

506
00:46:05,468 --> 00:46:10,207
it's like all right let's start let's start getting the books ready for Q2 earnings.

507
00:46:10,508 --> 00:46:15,227
It's not conducive there it's not conducive to like yeah because oh by the way as an exec you

508
00:46:15,227 --> 00:46:22,828
know you go to jail if you sign something that is that is fraudulent or wrong and so like your first

509
00:46:22,828 --> 00:46:28,548
like, I need to make sure I don't go to jail. Okay. Well, if you're thinking, I don't want,

510
00:46:28,627 --> 00:46:33,207
I got to make sure I don't go to jail. You're not thinking about how do I compete to Chinese?

511
00:46:33,407 --> 00:46:39,568
How do I go into this market? How do I do better in Brazil? How do I like, these are the real

512
00:46:39,568 --> 00:46:45,308
things you got to focus on. And like, we just haven't been for a long time. And it's all,

513
00:46:45,308 --> 00:46:50,148
like you said, it's all high time preference society, which is all around the end of the day,

514
00:46:50,148 --> 00:46:56,227
it's the currency. Why build a factory? Why plan out building a factory? And how do I allocate that

515
00:46:56,227 --> 00:47:01,788
capital when the dollar is moving around like this and the cost of that capital? You can't,

516
00:47:01,788 --> 00:47:06,088
you can't plan a factory. Come on. You've got to have some sort of a real, you know,

517
00:47:06,387 --> 00:47:11,768
a better currency system. No, I think you did an incredible service to the world a few weeks ago,

518
00:47:11,768 --> 00:47:16,308
really pulling on the debasement trade meme

519
00:47:16,308 --> 00:47:20,207
and sharing that chart of equities, real estate,

520
00:47:21,088 --> 00:47:23,668
and I believe it was S&P, NASDAQ,

521
00:47:23,988 --> 00:47:26,268
and real estate priced in dollars, gold, and Bitcoin.

522
00:47:27,268 --> 00:47:31,427
And I think if we were able to really distill that message

523
00:47:31,427 --> 00:47:33,348
like you did and make it popular

524
00:47:33,348 --> 00:47:35,568
and have company execs realize

525
00:47:35,568 --> 00:47:38,927
you should be storing your company's profits

526
00:47:38,927 --> 00:47:41,668
in these better currencies and Bitcoin and gold,

527
00:47:41,768 --> 00:47:47,988
Oh, yeah, I replied to. So Senator Sanders, Bernie Sanders had something up probably about a month ago.

528
00:47:48,068 --> 00:48:06,548
You can find it on my X feed about how, you know, like, I don't know, corporate greed and something else is, you know, the reason why, you know, since 1971, all of the profits, you know, all of the gains from productivity have accrued to the to the one percent and not to the bottom 50 percent.

529
00:48:06,548 --> 00:48:15,768
And like I tagged him out. I'm like, with all due respect, Senator Sanders, in 1963, minimum wage in this country was five silver quarters.

530
00:48:15,968 --> 00:48:19,988
It was $1.25. Minimum wage is $1.25. It's five silver quarters.

531
00:48:19,988 --> 00:48:27,188
The melt value at $51 of those five silver quarters today is like eight bucks each.

532
00:48:27,188 --> 00:48:36,848
so if minimum wage in real money terms was today what it was in 1963

533
00:48:36,848 --> 00:48:43,668
minimum wage would be five times eight bucks would be forty dollars what is national minimum

534
00:48:43,668 --> 00:48:49,848
wage actually seven and a quarter you want to know who stole the money senator sanders

535
00:48:49,848 --> 00:48:56,188
it's you and the politicians you guys changed the currency system you've been there for however many

536
00:48:56,188 --> 00:49:02,028
years he's been there. Change of currency system back. Nixon said it was temporary.

537
00:49:03,407 --> 00:49:08,607
That's where it all went. You go from having to pay people 40 bucks. Imagine if minimum wage was

538
00:49:08,607 --> 00:49:13,668
40 bucks. What would wealth inequality be? Corporate profit margins would be a lot lower.

539
00:49:13,887 --> 00:49:19,148
Sure. But corporate profit dollars would be way higher because we would be running an economy

540
00:49:19,148 --> 00:49:24,748
that would be essentially the version of what Henry Ford did initially, right? Which was pay

541
00:49:24,748 --> 00:49:29,828
his workers more than the market so that they could buy the model T's coming off the line.

542
00:49:30,688 --> 00:49:38,088
So like, that's, that's the fix that like, that's the fix. If they ultimately, unless you

543
00:49:38,088 --> 00:49:41,548
fix the currency, you're not going to really be able to do a whole lot.

544
00:49:43,707 --> 00:49:49,887
No, and it's, it's mind boggling how many people don't recognize this at all. I'm looking for

545
00:49:49,887 --> 00:49:58,548
a tweet but there's a guy nikita beer he uh he just joined twitter or x as some he's working on

546
00:49:58,548 --> 00:50:02,808
their their product i don't know exactly what he's doing but he tweeted out he's like oh wow

547
00:50:02,808 --> 00:50:10,587
all these all these golden uh bitcoin guys are are preparing for hyperinflation when ai is extremely

548
00:50:10,587 --> 00:50:18,387
deflationary i saw that i saw that post i i saw that post and it um the answer is very simple

549
00:50:18,387 --> 00:50:20,407
I actually think I replied to him.

550
00:50:20,587 --> 00:50:26,668
And I think I just said, deflation is the midwife of hyperinflation in highly leveraged societies.

551
00:50:27,468 --> 00:50:28,387
You read the book 1931.

552
00:50:29,107 --> 00:50:34,688
In 1931, Germany didn't hyperinflate again because they'd experienced the hyperinflation of 1922.

553
00:50:34,828 --> 00:50:36,268
And so they're like, we're not doing that again.

554
00:50:36,707 --> 00:50:38,348
But that was one of their choices.

555
00:50:38,407 --> 00:50:40,448
It was either default or hyperinflate.

556
00:50:40,848 --> 00:50:45,348
And I don't think the U.S. is going to nominally hyperinflate.

557
00:50:45,348 --> 00:50:54,648
well like look the dollar collapsed 90 against oil in 2001 between 2001 and 2008 right oil went

558
00:50:54,648 --> 00:51:00,887
from 15 bucks a barrel to 150 bucks a barrel that's that is simply the dollar collapsing 90

559
00:51:00,887 --> 00:51:06,768
the dollar was worth one tenth as much against oil in eight years you know the chinese we say

560
00:51:06,768 --> 00:51:13,548
we want to compete china can make the same or better stuff for us 85 cheaper than us including

561
00:51:13,548 --> 00:51:20,168
things like, you know, Josh, Josh Crum, not Josh Crum, Josh Wolf testified to Congress three years

562
00:51:20,168 --> 00:51:26,268
ago about nuclear power plants. So the Chinese can build a one gig, you know, one gig nuke plan

563
00:51:26,268 --> 00:51:32,548
for 85% cheaper than the Americans. A gig's a gig. A gig of electricity is a gig of electricity.

564
00:51:32,548 --> 00:51:37,288
It's not like there's some special yuan, you know, gig of electricity that gets them more or less

565
00:51:37,288 --> 00:51:39,127
power. They are

566
00:51:39,127 --> 00:51:40,288
by the same physics.

567
00:51:41,008 --> 00:51:43,107
So if their gig of electricity

568
00:51:43,107 --> 00:51:45,488
costs

569
00:51:45,488 --> 00:51:47,008
85%

570
00:51:47,008 --> 00:51:49,008
cheaper than ours, you know what that

571
00:51:49,008 --> 00:51:50,887
tells me? Dollar's

572
00:51:50,887 --> 00:51:53,048
85% overvalued against the yuan. It's that

573
00:51:53,048 --> 00:51:54,828
simple. It's the same

574
00:51:54,828 --> 00:51:58,368
and that's

575
00:51:58,368 --> 00:52:00,887
where this movie's going.

576
00:52:01,148 --> 00:52:03,248
Like some version of that. If we want to compete,

577
00:52:03,468 --> 00:52:05,008
if we want to break, people

578
00:52:05,008 --> 00:52:07,087
say, well, we need to split China. Great. The dollar's

579
00:52:07,087 --> 00:52:13,268
got to go down 85%. That's it against C1. That's fine. Whatever. Good. We'll be able to compete.

580
00:52:13,668 --> 00:52:18,168
Working class is going to get paid. Fed's going to have to buy a lot of bonds. But that's where

581
00:52:18,168 --> 00:52:23,607
this, like some version of that is where this is going. It's just, it's math. It's double entry

582
00:52:23,607 --> 00:52:28,648
bookkeeping. It's not like, it's not, you know, the only mystery is if we decide to split with

583
00:52:28,648 --> 00:52:33,427
China and as everyone's saying, we're going to do, we're going to divorce China and redo this.

584
00:52:33,427 --> 00:52:38,188
I don't know if it's 85% down or if it's 40% down or it's 60% down,

585
00:52:38,248 --> 00:52:39,828
but it ain't frigging 10% down.

586
00:52:39,828 --> 00:52:40,607
Like we've seen this year,

587
00:52:40,668 --> 00:52:42,068
not even close.

588
00:52:42,587 --> 00:52:42,988
No,

589
00:52:43,068 --> 00:52:44,188
no.

590
00:52:44,268 --> 00:52:46,887
And it's insane.

591
00:52:46,988 --> 00:52:48,887
So going back to the Nikita tweets,

592
00:52:48,907 --> 00:52:50,808
like text been deflationary.

593
00:52:50,848 --> 00:52:54,948
Like we've had extreme tech deflation over the course of the last five,

594
00:52:55,308 --> 00:52:55,788
six decades,

595
00:52:55,788 --> 00:52:57,948
six decades specifically.

596
00:52:58,048 --> 00:52:58,848
And it's like,

597
00:52:58,948 --> 00:52:59,328
yes,

598
00:52:59,727 --> 00:53:00,468
TVs are cheaper.

599
00:53:00,468 --> 00:53:03,407
What we're doing right now is way cheaper than it would have been.

600
00:53:03,427 --> 00:53:11,587
20 years ago. It gets good information out to people. And despite that, the cost of living

601
00:53:11,587 --> 00:53:18,568
is rising. And there should there is just this disconnect between that fact and the ability of

602
00:53:18,568 --> 00:53:22,828
people to recognize like, oh, if we pair this with a hard currency, we would actually reap

603
00:53:22,828 --> 00:53:31,328
the benefits as a global power and economy if we were able to store our wealth in a hard currency

604
00:53:31,328 --> 00:53:36,528
and we can let prices fall, but the purchasing power of our hard money is going up over time

605
00:53:36,528 --> 00:53:38,488
as we're being more productive throughout the economy.

606
00:53:39,188 --> 00:53:40,227
It's that simple, right?

607
00:53:40,268 --> 00:53:46,607
People are like, oh, well, gold wasn't so bad for America from 1860 to 1929.

608
00:53:46,727 --> 00:53:47,887
America had a pretty good frigging run.

609
00:53:48,548 --> 00:53:51,048
You had this huge productivity, huge technology, right?

610
00:53:51,127 --> 00:53:52,748
Technology is not just electric stuff, right?

611
00:53:52,768 --> 00:53:56,607
You had trains, you had planes, you had cars, you had all this technology,

612
00:53:56,688 --> 00:54:00,107
you had washing machines, consumer goods, massive deflation,

613
00:54:00,107 --> 00:54:07,348
And it was highly, highly productive and good for America, good for Americans.

614
00:54:08,188 --> 00:54:12,008
We were on a gold standard and some of it a blended gold, silver standard.

615
00:54:12,288 --> 00:54:14,607
But that's the challenge.

616
00:54:14,768 --> 00:54:18,148
Like people say this tech is deflationary and it is.

617
00:54:18,328 --> 00:54:29,668
But in the presence of a country with, you know, 7% fiscal deficits at the peak of the economic cycle and 120% at the GDP and hollowed out factory base, you know.

618
00:54:30,107 --> 00:54:36,528
I've said multiple times, there's nothing more inflationary than an insolvent sovereign

619
00:54:36,528 --> 00:54:44,727
that is printing money to keep the nominal value of its sovereign debt high, to keep it nominally

620
00:54:44,727 --> 00:54:50,148
money good. And that's why inflation is where it is, despite all this inflationary, deflationary

621
00:54:50,148 --> 00:54:56,087
tech, excuse me. It's just, they have to keep growing money units because otherwise, the debt

622
00:54:56,087 --> 00:55:01,188
implodes. And oh, by the way, the debt imploding is very hyperinflationary because the debt backs

623
00:55:01,188 --> 00:55:05,448
the currency. So if the debt, if the backing of the currency goes to zero or is impaired,

624
00:55:06,308 --> 00:55:10,727
guess what happens? That's when you really get a hyperinflation of some description as people

625
00:55:10,727 --> 00:55:18,148
basically dump currency to just get me something that isn't backed by bonds. So yeah, Bitcoin

626
00:55:18,148 --> 00:55:22,427
actually does fix this. A gold standard would actually fix this. And you can make the case

627
00:55:22,427 --> 00:55:26,668
Bitcoin is able to be, you know, all the things in Bitcoin,

628
00:55:26,768 --> 00:55:29,868
start portable and verifiable and et cetera, et cetera, et cetera.

629
00:55:30,427 --> 00:55:30,868
Yeah.

630
00:55:31,008 --> 00:55:34,368
You need a deflationary currency or else, you know,

631
00:55:34,368 --> 00:55:35,968
we're going to kind of continue down this path we're on.

632
00:55:36,927 --> 00:55:37,328
Agreed.

633
00:55:38,127 --> 00:55:42,907
And to wrap up, I'll say, like, I think the free market,

634
00:55:43,227 --> 00:55:46,227
Bitcoin is a creation of the free market is beginning to solve this.

635
00:55:46,288 --> 00:55:50,028
But I think even any Americans listening to this,

636
00:55:50,028 --> 00:55:54,768
you look at things like Square announced last week, where anybody who's running a Square point

637
00:55:54,768 --> 00:55:59,348
of sale systems throughout the United States will be able to automatically convert a portion

638
00:55:59,348 --> 00:56:05,508
of their revenues into Bitcoin right away. And when I think about actually solving this problem,

639
00:56:05,968 --> 00:56:12,607
what is the walk to the mailbox for the 500 pound smoker with heart problems? It's like, okay,

640
00:56:12,607 --> 00:56:19,368
just if you run a small business and you're using Square, maybe you start by funneling 5%

641
00:56:19,368 --> 00:56:25,548
of your revenues in the Bitcoin and building a Bitcoin treasury position for your small business.

642
00:56:25,548 --> 00:56:29,968
And you see what that does for you over the course of a year, two years, five years.

643
00:56:30,188 --> 00:56:34,008
And then you go, huh, this is this is better money. And you turn the dial up. And

644
00:56:34,008 --> 00:56:39,008
eventually, when I think about ways in which you solve this problem, it's like, all right,

645
00:56:39,008 --> 00:56:44,948
let's not depend on the government officials and central bankers who sort of pushed us down this

646
00:56:44,948 --> 00:56:49,308
road to think that they're going to solve it themselves or feel the pressure to solve it

647
00:56:49,308 --> 00:56:55,648
without any external pressure is a bit wishful, a bit of wishful thinking in my books. We need

648
00:56:55,648 --> 00:57:01,627
individual American citizens and businesses to adopt this better money and opt into it.

649
00:57:02,068 --> 00:57:05,288
And I think that's how we get through this at the end of the day.

650
00:57:05,948 --> 00:57:09,207
Yeah, I think that's exactly what's going to happen. I think it's really encouraging to hear

651
00:57:09,207 --> 00:57:16,348
things like that square. I mean, it is, it is quickly becoming a matter of utmost importance.

652
00:57:16,448 --> 00:57:20,268
I won't go all the way to life and death, but, you know, depending on events, it could become a

653
00:57:20,268 --> 00:57:24,127
matter of life and death for businesses to do exactly what you just described, which is just

654
00:57:24,127 --> 00:57:31,927
put a little, and individuals, put a little bit into, into Bitcoin, because you can see what,

655
00:57:32,148 --> 00:57:37,508
you know, the corollary to the Genius Act and the stable coin gambit to support the treasury market

656
00:57:37,508 --> 00:57:42,707
that we talked about earlier is you're not going to support the stablecoin market.

657
00:57:42,887 --> 00:57:45,727
The stablecoin market's not going to be big enough to support the treasury market

658
00:57:45,727 --> 00:57:50,288
with Bitcoin at $200,000 or $500,000.

659
00:57:50,968 --> 00:57:54,727
He needs a million-dollar Bitcoin, $2 million Bitcoin

660
00:57:54,727 --> 00:58:01,648
to pull along the number of stablecoins, to pull along the T-bill issuance.

661
00:58:01,648 --> 00:58:05,887
Basically, we wrote it as the U.S., the treasury,

662
00:58:05,887 --> 00:58:11,008
seems to be standing up Bitcoin de facto as a competing reserve asset to gold.

663
00:58:11,207 --> 00:58:12,368
And then they can duke it out.

664
00:58:12,508 --> 00:58:13,828
Gold and Bitcoin can duke it out.

665
00:58:14,887 --> 00:58:15,808
We'll see.

666
00:58:18,927 --> 00:58:21,288
But that's exactly what has.

667
00:58:21,368 --> 00:58:24,468
And that will rebalance things.

668
00:58:24,468 --> 00:58:27,188
That will take things away from the financialized guys.

669
00:58:27,407 --> 00:58:29,828
That will take power away from the Fed.

670
00:58:30,008 --> 00:58:31,907
That will do all the kind of things that you need.

671
00:58:32,188 --> 00:58:34,227
To your point, it's a market.

672
00:58:34,227 --> 00:58:42,508
it will be a market driven incentive system um that we really it will narrow wealth inequality

673
00:58:42,508 --> 00:58:49,948
it will but again the only way it narrows wealth inequality is if people start buying some every

674
00:58:49,948 --> 00:58:56,087
week and self-custody it because otherwise if you don't self-custody it you they're just going

675
00:58:56,087 --> 00:59:01,168
to rug pull you like they rug pull like you know you custody with you know you just you just have

676
00:59:01,168 --> 00:59:06,727
to custody it yourself. You just, you know, it's so easy to do. There's very good services that'll

677
00:59:06,727 --> 00:59:11,768
help you do it. Like, just do it. Like, because otherwise you're just re-centralizing it elsewhere

678
00:59:11,768 --> 00:59:20,068
and, you know, it opens up the risk for rug pull down the road. Yeah. I don't want to glaze them

679
00:59:20,068 --> 00:59:27,587
too much, but that's why I'm extremely happy that Square exists and they have the sort of mentality

680
00:59:27,587 --> 00:59:31,748
that they do. Obviously, Jack's been very vocal about this. Bitcoin is everyday money.

681
00:59:31,748 --> 00:59:38,087
We need to use it. And they're supporting many different areas of the industry with

682
00:59:38,087 --> 00:59:42,568
the BitKey, which is a hardware wallet. They have Proto, which is mining. Spiral,

683
00:59:42,707 --> 00:59:48,227
which is open source development, obviously. Square and Cash App. And I believe Miles

684
00:59:48,227 --> 00:59:54,468
Suter is the product lead over a block. A product lead over there said that you'll

685
00:59:54,468 --> 00:59:59,627
automatically be able to sweep funds that you accumulate via your square point of sale terminal

686
00:59:59,627 --> 01:00:05,808
to self custody using BitKey and other wallets. So we need more examples of that, of industry

687
01:00:05,808 --> 01:00:10,768
people leading and doing things the right way, because like you said, it is not that hard.

688
01:00:11,207 --> 01:00:14,328
And it is important that we do it the right way, because that's how we actually

689
01:00:14,328 --> 01:00:19,768
structurally fix these problems. Yeah. Oh, yeah. Like I'm a tech moron. And so like,

690
01:00:19,768 --> 01:00:24,288
if I can do it, anybody can do it. Like I'm like, you know, whatever the tech abduction

691
01:00:24,288 --> 01:00:29,788
curve, I'm usually way past the big wave. Like I'm, I'm a, I'm literally a tech idiot. So like

692
01:00:29,788 --> 01:00:37,087
if it's easy enough for me to do it, just about anybody can do it. Yeah. And Luke, I appreciate

693
01:00:37,087 --> 01:00:42,008
your time. This is a great catch up. Uh, I think you've been completely valid. We've been talking

694
01:00:42,008 --> 01:00:47,968
on this show, I think for probably five years now, uh, you've just been beating the drum

695
01:00:47,968 --> 01:00:52,907
consistently and it feels like we're hitting an inflection point that you've been, uh, you've been

696
01:00:52,907 --> 01:00:57,528
pointing to for for many years now so I think thank you for your time and

697
01:00:57,528 --> 01:01:04,008
educating the audience here no I appreciate that it's it's it's it's been

698
01:01:04,008 --> 01:01:07,148
it's been it's been a great time it's been fun it's been you know it's been

699
01:01:07,148 --> 01:01:12,348
you know the the most fun work of my life and you know it's been happy to hear

700
01:01:12,348 --> 01:01:18,927
from from clients and friends like hey like this is you know this is good there's

701
01:01:18,984 --> 01:01:22,064
There's times in this business where you don't see the ball that well.

702
01:01:22,064 --> 01:01:26,144
And, and, you know, those are when you're trying to work walks and, you know, grind out singles.

703
01:01:26,144 --> 01:01:30,964
And, you know, some, when you're seeing the ball well, then, you know, those are the times when it's, when it's super fun.

704
01:01:31,784 --> 01:01:38,084
And so, you know, hopefully we can knock on wood, you know, try to, try to, try to, try to keep it going.

705
01:01:38,764 --> 01:01:38,904
Yeah.

706
01:01:39,624 --> 01:01:41,924
Highly recommend checking out Forest for the Trees.

707
01:01:42,924 --> 01:01:45,944
We'll link to the website, the YouTube channel.

708
01:01:46,084 --> 01:01:47,464
I mean, your, your YouTube video has been great.

709
01:01:47,464 --> 01:01:54,164
the Q and A's if you're looking for quick hits just to get a peek into what Luke is thinking from

710
01:01:54,164 --> 01:01:57,084
a week to week basis. Definitely go check that out as well.

711
01:01:58,304 --> 01:01:59,104
Appreciate it.

712
01:01:59,464 --> 01:02:01,604
All right. That's all we got today, freaks. Peace and love.