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00:01:52.000The media is probably getting calls from the Treasury Department right now.
00:01:56.000I guarantee you, the big uglies, CNN, even the people running the Apple News desk, NBC, I can almost guarantee you the Treasury Department's PR side, the communications director, they are working the phones saying, hey, can you just downplay the bank story?
00:03:41.000It is a fractional reserve banking system.
00:03:44.000It works as long as everybody doesn't go and withdraw their money all at once.
00:03:49.000So the fall of First Republic Bank should be a lot bigger on the Wall Street Journal than the eye candy distraction smokescreen Doja cat person.
00:03:59.000But somebody at the Treasury Department, and quite honestly, you can't blame them, is trying to just kind of tamper this down.
00:04:06.000You can cover it here or there, but do not engage in panic.
00:04:12.000So the New York Times has an incredibly important graphic right now.
00:04:17.000Do you know that the three failed banks this year, Silicon Valley Bank, Signature Bank, and First Republic Bank, surpasses the amount of assets of busts in 2008?
00:04:31.000So there were more banks that busted in 2008 than have busted so far, but these were so big that in 2008, there were 25 banks that busted for a total of $94 billion.
00:04:47.000So far this year, three banks have busted for a total of $110 billion, $110 billion.
00:04:57.000So currently, the banking collapse is already worse this year than it was in 2008.
00:05:21.000People said, oh, Charlie, it's the worst thing ever.
00:05:23.000During the lockdown, we said the number one way to stimulate the economy is to open the economy.
00:05:29.000And Republicans and Democrats agreed to keep on spending money we do not have, creating money out of thin air, funneling fiat currency into the economy.
00:05:40.000And basic economic truths, best articulated by Milton Friedman and Thomas Sowell, when you create six, seven, eight, nine trillion dollars out of thin air, you're going to get a lot of bad behavior.
00:05:53.000You're going to subsidize bad behavior.
00:05:55.000You are going to get what in economics is called externalities.
00:06:00.000You're going to get what's even more specifically called in economics, malinvestment.
00:06:05.000Bad companies will be able to stay open.
00:06:08.000Defunct nonprofits will be subsidized through ERCs or through this bailout money or through the stimulus money.
00:06:16.000It was a completely unnecessary cash infusion that Republicans should have opposed.
00:06:24.000It was a poor allocation of capital, especially since our dollar is just based on fiat, on the faith of the dollar.
00:06:34.000Not to mention then the Biden regime comes in and wages a war on oil and natural gas and pushes for more regulation and destroys entrepreneurial confidence.
00:06:46.000Poor allocation of capital always happens before bubble bursts.
00:06:49.000Now, strict Austrian economists, of which I agree with some of what they have to say and disagree with other things, Ludwig von Mises, beautiful literature that they wrote.
00:06:59.000And I read all this stuff like 10 or 12 years ago.
00:07:02.000Murray Rothbard, but he's a little extreme.
00:07:04.000They did have an interesting argument where they said the Austrian business cycle, as they argue, is that booms and busts are actually not normal.
00:07:15.000Absent a massive central bank infusing the economy with artificial capital.
00:07:22.000So basically they say this idea of recessions and growth and recession and depression, it's actually not the normal business cycle, that if you have a stable currency, you'll be able to get rich slowly.
00:07:35.000You see, the promise of the people that want a metallic-based currency is you will get rich over a period of time and it's actually better that way.
00:07:44.000Well, look at this graph here on the New York Times, that we already have more assets that have collapsed.
00:07:50.000And again, the media, I don't want to say the media is doing a disservice.
00:07:54.000The fact they're not playing into this is actually probably the right thing.
00:08:02.000Because if the media led with bank run, bank collapses instead of Doja Cat, if the media led with this instead of Ukraine, you would have probably another 10 or 20 or 30 banks collapse, especially regional ones.
00:09:45.000But let's make sure we understand why this has happened.
00:09:48.000This did not happen because of Bitcoin or cryptocurrency.
00:09:52.000This happened because of our flawed, unstable, fiat currency model that is finally coming home to roost.
00:10:02.00030 or 40 years of cheap money, of neoliberal agendas.
00:10:08.000Soon people are going to have a bigger indictment of the American dollar where they're saying, wait a second, there's nothing backing my currency.
00:10:17.000There has not been anything backing your currency since Nixon, when he officially closed the door on the gold standard.
00:10:23.000It's all hope, promise, and that hope and that full faith in credit of the United States is collapsing in real time.
00:11:07.000And people message me, Charlie, how do you get sleep?
00:11:09.000I sleep great because I get the magnesium I get.
00:11:12.000And look, unlike other magnesium supplements that might be giving you only one or two forms of magnesium, magnesium breakthrough contains all seven forms of magnesium designed to help calm your mind, help you fall asleep, stay asleep, and wake up refreshed.
00:11:26.000Over 75% of the population is magnesium deficient.
00:11:30.000And what most people don't know is that even if they're taking a magnesium supplement, they're deficient because they're not getting all seven forms.
00:11:36.000Not only does magnesium breakthrough help you sleep better, it also calms your mind and allows you to feel grounded and relaxed during the day and especially before bed.
00:14:05.000They came out with Dodd-Frank, not as a way to regulate banks, but they wanted to pseudo-nationalize them through shrinking the amount of banks.
00:14:14.000This is a trend that we are seeing across the board.
00:14:17.000They want a smaller and smaller selection of companies that you are able to choose from.
00:14:27.000We have three or four automobile manufacturers, if you count Tesla.
00:14:31.000In Canada, there are basically five national banks.
00:14:34.000Our huge array of local banks is not a law of the universe.
00:14:38.000In fact, if they're able to chip away at the fact that we have a regional bank there and a regional bank there, and you got Wichita General there, and you got First Tampa there, and you got Des Moines regional there, and they could chip it away and chip it away.
00:14:53.000And either they collapse, they go under, and they get eaten by JP Morgan or Bank of America.
00:15:02.000They're local and decentralized, which we talk about repeatedly.
00:15:05.000Local and decentralized power is a key to liberty.
00:15:08.000This accumulation of power and money is smaller in a smaller number of banks threatens our very liberty.
00:15:15.000So when they close these local banks, it's threatening our autonomy.
00:15:19.000It's threatening your ability to be free of woke capital.
00:15:24.000And these regional banks cannot always be controlled by DC bureaucrats.
00:15:29.000This is a direct sabotage campaign to come for mom-and-pop banks to try to conform us into a national banking strategy controlled by a small, select few of banks headquartered out of New York.
00:15:42.000Bank of America, Wells Fargo, J.P. Morgan.
00:15:45.000And if you want to add the asset managers into it, it's BlackRock.
00:15:48.000And then, of course, you have Goldman Sachs.
00:15:51.000An underrated aspect of America's success.
00:15:55.000This is more broadly applicable, which is something that we must just keep on repeating because it's a truth that we do not say often enough.
00:16:03.000One of the reasons why America has been the most prosperous, generous, entrepreneurial country is decentralization of power.
00:16:11.000The founding fathers' vision of this has proven to be one of the great liberators of humanity, one of the great guaranteers of flourishing.
00:16:54.000One of the last institutions that has not been completely clobbered up by the centralized, by the Leviathan, is our banking system, but it's happening right now.
00:18:16.000Let me read from the New York Times here.
00:18:17.000Government regulators seized and sold off the First Republic Bank on Monday, making it the first, the third bank to fail this year after Silicon Valley Bank and Signature Bank collapsed in March.
00:18:27.000These banks held a total of $532 billion in assets.
00:18:31.000That's more than the $526 billion when adjusted for inflation held by the 25 banks that collapsed in the collapse in 2008 at the height of the global financial crisis.
00:18:41.000So that really begs the question before any further, are we living through a financial crisis that the kind of the new strategies just kind of do ignore it?
00:18:49.000Like, oh, yeah, we're not in a recession.
00:20:57.000I'm afraid that we have not seen the end of it.
00:20:59.000I'm afraid that we're just beginning to see the early stages of widespread bank collapses, potential bank runs, deterioration of our currency, entire portions of wealth being eradicated and destroyed.
00:21:12.000Almost like a slow-motion demolition of the country.
00:22:04.000We used to be a civilization and a country that believed in delayed gratification.
00:22:09.000Delayed gratification from how we ate to our exercise to how we raised our children to how we invested to, yes, even how we appropriated money via public policy decisions.
00:22:23.000Delayed gratification is all about leaving the next generation better off.
00:22:29.000But the temptation to retire delayed gratification as a core value was irresistible.
00:22:37.000The leaders in the early 1990s, primarily led by baby boomers, and I know I'm going to get a lot of emails about this.
00:22:42.000I'm not blaming every baby boomer, but this is a generational fact, okay?
00:22:47.000There was a decision made in the early 1990s to retire delayed gratification and prioritize instant gratification.
00:22:56.000And it was hard to resist that temptation.
00:23:00.000The guard was dropped after the fall of the Berlin Wall.
00:23:29.000And again, I'm not blaming every member of the baby boomer generation.
00:23:32.000Just so happens, every person who made these decisions were largely baby boomers in power.
00:23:37.000And 2001, 9-11, 2001, and the Rubicon began to get crossed.
00:23:44.000The Federal Reserve lowered rates after 9-11.
00:23:47.000Looking back, that was completely unnecessary.
00:23:51.000It was strictly a way to try to rebuild people's confidence in a system.
00:23:56.000I believe this was done by Alan Greenspan called the Greenspan put.
00:24:01.000I could be wrong, but Alan Greenspan, I believe, was chairman of the Federal Reserve in 2001 and lowered interest rates after 9-11.
00:24:10.000Now, 9-11 was awful and it was horrible, and it did destroy actual infrastructure.
00:24:15.000But was it really necessary to make money cheaper just because people's confidence was temporarily shaken after a terrorist attack?
00:24:25.000No, what Greenspan started was a new philosophy of the Federal Reserve, which is that the Fed can lower rates if enough people get nervous.
00:24:38.000After Alan Greenspan did that, we saw the low rates stay.
00:24:43.000We also saw the proliferation of the Community Reinvestment Act, and eventually that all led to the 2008 financial crisis.
00:25:52.000We're just going to turn down the interest rates.
00:25:54.000But anytime you manipulate interest rates, it comes with a serious, catastrophic, and to your society and economy, deathly cost.
00:26:05.000And yeah, a lot of people got rich in 2020 and 2021.
00:26:09.000For those of you that bought real estate and bought homes and actually leaned into low interest rates, your asset prices are up major, but things are not more valuable.
00:26:18.000They are just priced higher because there's more dollar bills.
00:26:22.000When you have more dollar bills, it's not necessarily more wealth is created.
00:26:29.000The muscular class and the middle class.
00:26:32.000You see, Greenspan changed everything because the Federal Reserve could kind of just be almost used as a thermometer, not a thermometer, a thermostat.
00:26:43.000Get a little bit hotter, a little bit colder, a little bit hotter, a little bit colder.
00:26:48.000Milton Friedman continues explaining what our banking system actually is.
00:26:57.000You may think that when you take some cash to a bank and deposit it, the bank takes that money and sticks it in a vault somewhere to wait until you need it again to turn it back over to you.
00:27:10.000It immediately takes a large part of what you put in and lends it out to somebody else.
00:27:14.000The result is that if all depositors at all the banks tried all at once to convert their deposits into cash, there wouldn't be anything like enough cash in the banks of the country to meet their demands.
00:27:27.000In order to prevent such an outcome, in order to cut shorter run, it's necessary to have some way either to stop people from asking for it or to have some additional source from which cash can be obtained.
00:27:42.000That was intended to be the purpose of the Federal Reserve System.
00:27:45.000It was to provide the additional cash.
00:27:48.000It was to provide the additional cash in the need of a bank run.
00:30:36.000I demand that I have a good golf game.
00:30:38.000It is the economic catastrophe we are living through.
00:30:42.000Yes, has globalist World Economic Forum implications that I'll talk about.
00:30:45.000But I think most of this can be explained away by just widespread, unchecked narcissism.
00:30:53.000That's too bad because a country rooted in duty, honor, and obligation would balance its budget and not lower interest rates and not just care about the instant sugar high.
00:31:05.000What we have done over the last 30 or 40 years is we have had a diet of Twizzlers, Skittles, MMs, whiskey, and rum.
00:31:14.000And we wonder why we're a little hungover.
00:31:20.000Now, the first step toward understanding the cause of inflation is to recognize that it is always and everywhere a monetary phenomenon.
00:31:33.000It's always and everywhere a result of too much money, of a more rapid increase in the quantity of money than an output.
00:31:44.000Moreover, in the modern era, the important next step is to recognize that today governments control the quantity of money so that as a result, inflation in the United States is made in Washington and nowhere else.
00:32:05.000It's made in Washington and nowhere else.
00:32:07.000Our leaders, the people in charge in both political parties, they just increased the guzzle.
00:32:48.000America First is about the restoration, not just the restoration, but the preservation that my children and my grandchildren, in fact, that is in the preamble of the United States Constitution, posterity.
00:33:03.000And both political parties just continue to want to get drunk at the guzzle of cheap money.
00:33:09.000And yes, now you're seeing globalist forces and Jamie Dimon come and sweep in and buy up these regional banks.
00:33:14.000The cheap money is not ending anytime soon, but we did this to ourselves.
00:33:19.000And you're living through something dramatic.
00:33:22.000And our leaders, more importantly, did it to us because many of you did delayed gratification over the last couple of decades, but your leader certainly didn't.
00:33:31.000Thanks so much for listening, everybody.
00:33:32.000Email us your thoughts as always, freedom at charliekirk.com.
00:33:35.000Thanks so much for listening, and God bless.
00:33:40.000For more on many of these stories and news you can trust, go to CharlieKirk.com.