Max Keiser, Stacey Herbert, and Ian Crosslandlanden join me to talk about what's going on with the economy and what Bitcoin can do to help it. Recorded in Los Angeles, CA!
00:00:00.000The largest oil pipeline has been temporarily shut down.
00:00:33.000A state of emergency was declared in 17 different states in Washington, D.C., and there are fears that this could end up causing gas shortages and maybe even a spike in gas prices, which are already up, as it is.
00:00:47.000There is fear that the bill is coming due.
00:00:50.000All that money that was being printed, all of these people who are getting $16 an hour in unemployment, all of these signs popping up across all of these different fast food restaurants where they say, we quit, we won't work here anymore.
00:01:33.000If you guys listened to Max and Stacy when they were first shouting out Bitcoin, and you invested when they told you to, no joke, you would be a billionaire.
00:02:10.000People have photos of Max and Stacey on their wall with little candles burning and incense.
00:02:15.000And there's Stacey and Andreas Antonopoulos.
00:02:19.000Those are the two holy saints of the Bitcoin universe, wherever you go around the world.
00:02:23.000I will say that there are probably more millionaires than billionaires, Tim, because you can't forget that between 2011 and now it was very easy to spend or lose or have your coins hacked.
00:02:37.000So very few will have kept all those coins that they got back.
00:02:41.000And you know, when it was a dollar, as you were, we were pointing out before the show is like when it hits a hundred dollars, you're like, whoa, like I have so much money.
00:02:51.000But not just, uh, I think we'll talk a lot about Bitcoin because of, you know, what's happening with the economy.
00:02:56.000But, I mean, you both have talked about the economy in general more than, you know.
00:02:59.000You were just explaining to us how the Fed works, the interest rates.
00:03:02.000So this is gonna be really interesting.
00:03:15.000Did you guys see, like, when Obama basically bailed out Fannie Mae and Freddie Mac?
00:03:18.000Is that when the writing went on the wall and you were like, Oh, it goes back to the 87 crash of 1987.
00:03:26.000And I was working on Wall Street at the time.
00:03:29.000And that was the beginning, really, of when the federal government kind of took over markets because you had the crash of 87.
00:03:36.000And the next day, the markets were set to open another 500 points down or 22, 23 percent down.
00:03:41.000It was the biggest percent move down in the history of the stock market.
00:03:45.000And you had Alan Greenspan, Ronald Reagan, and the other fellow over there, Rubin.
00:03:54.000They created the Working Group on Finance, which became known as the Plunge Protection Team, and they started buying stocks in the open market and the federal government.
00:04:02.000And so this is when you had the beginning of the end of free market capitalism in America was really then in 1987.
00:04:09.000So subsequently, throughout the decades since then, the government's become more intrusive into the workings of the markets.
00:04:18.000So you ended up having, under Greenspan, what became known as the Greenspan put, which became the Bernanke put, which became the Janet Yellen put, which is now the Jay Powell put.
00:04:28.000And what that refers to is every time the markets go down, the feds come in and they buy markets.
00:05:25.000All right, before we get started, ladies and gentlemen, go over to TimCast.com.
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00:05:50.000Last week, I talked about how Venezuela hacked my friend's Facebook trying to spy on me and get me to reveal my location while I was reporting from Venezuela, and I showed the phone messages from the Venezuelan agents or whoever they were.
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00:06:13.000Let's talk about this first story because this is major breaking news.
00:06:18.000Emergency declaration issued in 17 states and DC over fuel pipeline cyber attack.
00:06:24.000So the Department of Transportation's Federal Motor Carrier Safety Administration issued a regional emergency declaration for 17 states and Washington DC to keep fuel supply lines open.
00:06:35.000Colonial Pipeline carries 45% of fuel supplies in the eastern US.
00:06:39.000Some 5,500 miles of pipeline has been shut down in response to the attack.
00:06:44.000So, if you're not familiar with the story, this is a ransomware attack.
00:06:47.000Basically hit one of the systems at Colonial.
00:06:49.000I don't know if it actually hit the industrial control systems, but they're computers.
00:06:53.000Which basically means they're administrative computers.
00:08:25.000So what's the point of getting the money if, like, there's no oil?
00:08:27.000What are you gonna do, go buy a farm, I guess?
00:08:29.000Well, it brings up, you know, a couple of points.
00:08:31.000The infrastructure in the United States is weak and getting weaker, and that's a huge problem, and there's very little funds to take care of it.
00:08:38.000And also you have the ransomware, and the inability to deal with that is kind of a secondary problem.
00:08:46.000Primarily the roads, bridges, tunnels, infrastructure, pipelines, oil pipelines.
00:08:50.000These things have gone neglected for decades.
00:08:52.000And now they're starting to fall apart.
00:08:54.000And the federal budget doesn't have any budget to repair these things.
00:10:12.000You know, over the past, since 2008, they keep on pretending that they're all meeting together, all these academics and economists, and they're going to come up with a new plan.
00:11:52.000It's like, you know, the... But as Max will also point out, you know, the whole derivatives, the complexity in the financial system now is just so huge.
00:12:05.000That by the time like more advanced stuff came around they they just didn't know how to unwind any of it like it's all Trapped in this old system Yeah, I talk a bit about this watching all the different stuff that's been happening over the past few years you know police departments cops are quitting like crazy riots are getting more emboldened and Yeah, because the markets are rotten and the money that we use is rotten.
00:13:39.000But if they can just print out money as easily as I can pull this trigger and fire off some, why can't they just fix our infrastructure with it?
00:13:47.000Because they give it to banks, and the banks buy chateaus and property on Park Avenue, and Jamie Dimon is a billionaire.
00:14:22.000If they were to start building factories and employing people across Michigan and Iowa and Idaho and places like that, then the dollar would no longer be the reason.
00:14:46.000Well, the Triffin Dilemma is something that was warned about when we did Bretton Woods back in 1944.
00:14:52.000And Triffin had warned that the problem with having a reserve currency is that the geopolitics versus your domestic economics, they get into conflict.
00:16:25.000So earlier I showed you guys, we're just going to release the secret live on the air, that there is a secret room in this building that no one knows about.
00:16:34.000And in it was food and beans and bullets.
00:17:14.000But I don't want to get into too much of that, but you guys are saying, you know, in the context of war and the fourth turning, are you guys familiar with Thucydides trap?
00:17:46.000For those that aren't familiar, it's basically, and correct me if I'm wrong, that when a rising economic power meets, is about to overtake the dominant power, war breaks out.
00:17:54.000And that happened in the past few years.
00:19:20.000So China drives the global economy and they're going to drive the cultural agenda as well.
00:19:24.000The thing that changed, the thing that put us on the path towards a violent conflict was 2014, the Belt and Road Initiative.
00:19:32.000So what always happens is, as I was mentioning, when you have the world's reserve currency, you have to send your dollars overseas.
00:19:38.000Otherwise, because they can't print dollars, so you have to get it to circulate.
00:19:42.000So we were sending, first we were sending Saudi Arabia, Europe, and they kept recycling it back into treasuries.
00:19:49.000Well, that's what China did until 2014.
00:19:51.000Then they started taking their dollars and lending it to Africa, lending it across Asia to other nations and building infrastructure and ports and stuff like that.
00:20:05.000And America was like, wait, this is cheating.
00:20:10.000It's not cheating, really, but we're going to say it's cheating.
00:20:13.000When we loan money to China, are we borrowing it from the Federal Reserve and then we owe the interest to the Federal Reserve and then loan it out?
00:20:20.000Or does the money get loaned to the Chinese and they owe the interest to the Federal Reserve?
00:20:26.000Basically, we have a trade deficit with them.
00:20:29.000So you have to run massive trade deficits when you have the reserve currency.
00:20:34.000So that's the lie that nobody will tell the American people.
00:20:37.000You know, Trump came close to it when he was like, make America great again.
00:20:41.000But the point is, you have to tell people like we either have the reserve currency or we have a domestic economy.
00:21:39.000but uh you can see around 2008 there's a major uptick in you know the money stock and then at the pandemic a massive spike so i think this this kind of stuff's been happening for a long time but they show us laundry detergent i'm sorry laundry equipment is up 29 percent car and truck rentals 24 major appliances 19 propane kerosene firewood 15 pork chops 11 used cars and trucks are up 10 then there's weird stuff like uh women's dresses are down 14 public transportation is down 15 Men's suits are down.
00:22:06.000Telephone hardware is actually down 20, which is interesting.
00:22:09.000And airline fares have dropped dramatically.
00:22:32.000Well, and you mentioned computer components and the price they're saying is going down.
00:22:35.000But that's actually, if you dig into it, a lot of times it's a lie.
00:22:37.000For example, if the phone, they'll say it's twice as fast as the phone that you bought two years ago, they'll say that means that the price has dropped by 50%.
00:22:44.000Even though you still paid the amount, the same amount.
00:22:48.000They say, actually, it's 50% cheaper because it's twice as fast.
00:22:51.000And that's what they cook into their books.
00:22:52.000When the Bureau of Labor Statistics reports the CPI numbers, the numbers are cooked, they're rigged, to show an outcome that they have pre-configured.
00:23:01.000They want to show 1.6% or whatever the number is, and they do whatever they can to hedonically adjust these numbers to get to that number because they have an incentive to keep the reported inflation as low as possible.
00:23:12.000All right, so I'm sure that you're both Bitcoin trillionaires.
00:23:39.000It's going to be now structurally baked into the economy and prices are going to start to go up on a regular basis.
00:23:46.000And the reason why it wasn't as visible as it has been with all the money printing that has gone on is that essentially jobs were shipped over to China and that kept the numbers low for a long time because there was no wage pressure.
00:24:00.000But now, since the middle class in China has equaled the more or less middle class in America, you don't really have that sink of cheap labor anymore.
00:24:09.000So now prices are going to start moving up in reflection of their actual money supply numbers for real.
00:24:17.000So, one key statistic, and this is true, is that once the budget of the average family, once they allocate 40% to food, that's when you usually see an insurrection.
00:24:30.000So we saw it in Egypt, when the price got to 40%, there was a revolution.
00:24:34.000We saw it in France, the French Revolution, the food costs got to around 40%.
00:24:39.000In the U.S., for a vast majority of folks, we're now bumping into that, you're getting now, approaching that 40% number.
00:24:45.000So that would indicate historically that you're getting close to a flashpoint where an insurrection would become historically the norm.
00:25:06.000And the Thucydides trap, as you mentioned, that's going to lead to deglobalization.
00:25:09.000You're already seeing the deglobalization that causes prices to rise.
00:25:13.000You have the fourth turning, this young generation, the Generation Z, aren't going to... Do you think they're really gonna give 80% of their wages over to the retired boomers?
00:26:25.000Most of it from the government transfers.
00:26:28.000So, you know, these are crack up boom times and they're printing more and more like you're supposed to do the money printing that the theory is under Keynes is you're not supposed to do that during the crack up boom times.
00:26:39.000You're supposed to wait for the crash.
00:26:41.000But they're not even waiting for the crash anymore.
00:26:43.000Again, getting back to this Greenspan put or the machinations of the Plunge Protection Team or the government in terms of markets is that they would not allow for a normal business cycle to take place.
00:26:53.000Where you have a downturn and then you get rid of, for example, the banks in 2008 were caught committing massive fraud.
00:27:00.000And so in a normal capitalist economy, a business cycle, those banks would have had to go bankrupt and we would have had new banks and new jobs.
00:27:08.000But instead, they bailed out the creditors.
00:27:22.000And what they did with that, what was called $16 trillion of bailout money, when it's all said and done, Is they simply were allowed to expand their credit card, expand their credit facilities, and do the exact same things that caused the crisis in 2008, but to do it 10 times to 20 times bigger, or 20 times worse.
00:27:39.000And we've been saying now for 10 years that, you know, what's going to happen in 10 to 12 years is going to be the 2008 crisis part two.
00:27:58.000It's like an undead, reanimated corpse.
00:28:01.000Well, how many zombie companies are there in the United States?
00:28:04.000Something like 30% of the S&P 500 are companies that can't really afford to pay interest on the debt that they carry on their books from their earnings.
00:30:45.000I do have an electric car, and my van is solar-powered, so in the apocalypse I can actually plug my electric car into the solar power from the van, and in probably about two or three weeks you'll be able to drive the electric car.
00:31:01.000Well look, this is a function of too much debt.
00:31:04.000So, the infrastructure is breaking down and yet before, up until a few years ago, you had this just-in-time economy where things were logistically all connected.
00:31:13.000You had globalization and you had this incentive to keep all these systems going at the absolute rock-bottom cheapest price and to not pay anybody anything in terms of a decent wage.
00:31:23.000But once the Thucydides trap kicks in, once the U.S.
00:31:27.000dollar loses its status as a world reserve currency, then it reveals all of the shortcomings in the system, and it reveals all the fragility in the system.
00:31:35.000And there's suddenly no way to repair these infrastructure projects, because the money's being sent out directly from the Treasury to appease the rabble-rousers from staging an insurrection.
00:31:46.000I mean, this is what they do in countries where the population's about to insurrect, is they try to throw money at them to appease them.
00:31:53.000And that works for a short period of time, and then it doesn't work.
00:32:30.000Millennials are going to have a great century.
00:32:33.000Yeah, and the Generation Z who are like 25 years old now, the oldest ones.
00:32:38.000That in terms of those microchips, you know, you have been talking about cycles and the business cycle that used to exist when Max and I were, you know, your age, we had the business cycle.
00:32:49.000And the thing about the semiconductor chips is they, you know, they never, they never planned.
00:32:55.000Nobody expected the money printing, like the fiscal stimulus, right?
00:33:00.000So what happened is naturally these business executives saw a pandemic, saw global lockdown.
00:33:14.000No, they didn't expect the thousands and thousands of dollars to be thrown at everybody and everybody to go on a buying spree.
00:33:19.000So there were backlogs like everybody.
00:33:22.000All these auto companies had canceled their orders, expecting that things would be slowing down.
00:33:28.000And across the board, computers, phones, all that stuff, every everything that uses a microchip.
00:33:34.000They were not expecting so much money.
00:33:36.000It sounds like there's two things I'm kind of hearing from what you guys are saying.
00:33:39.000The first is that there are people who decided the ship's sinking.
00:33:42.000Extract as much as you can before it goes down and bail yourself out.
00:33:46.000But the other thing is, you know, I mentioned the fascism thing, because when you say like the central banks are giving this money to like Amazon to buy Whole Foods or whatever, it sounds like the government is surreptitiously empowering massive corporate monopolies to seize power.
00:34:02.000These these companies have no oversight.
00:34:04.000The Federal Reserve, the Bank of International Settlements.
00:34:07.000Well, because this is why they say that inflation is, let's say, running at 1.6 percent, even though if you were to calculate inflation as you would do under the Clinton administration and without using all these hedonic adjustments, inflation actually right now is running 10 to 12 percent.
00:34:33.000The COLA adjustments, the cost of living adjustments for Social Security.
00:34:36.000So they save about $70 billion a year by not paying out what they should be paying out because inflation is going high to Social Security benefits.
00:34:43.000The other, but the primary reason, is that by saying that inflation is running low and in fact claiming that there's deflation.
00:34:49.000They can justify lower interest rates that are near zero, which are what powers all the consolidation.
00:34:56.000The Tiffany being bought, Whole Foods being bought, mergers and acquisitions.
00:34:59.000And when I said earlier about infrastructure crumbling because of all the debt, to finish up on that point a little bit, it goes back to private equity, what private equity does.
00:35:07.000Private equity can borrow all this money at near zero percent, buy entire companies, entire industries, and strip out all the assets and keep the profits.
00:35:16.000You know, Bain, the Bain Capital, Mitt Romney, you know, that's where he comes from.
00:35:22.000You know, we saw it in the movie The Wall Street in the 1980s, right?
00:35:24.000They were doing leverage buyouts, as it was called.
00:35:28.000That means that if you have a company and you want to buy that company, what you can do is, and I was working on Wall Street when this really became huge, is that you can pledge the assets of the company that you don't own to borrow money.
00:36:04.000And it was really pioneered by Mike Milken during the 1980s because he he he wrote a paper when he was a Wharton where he figured out that the lower grade debt outperforms high grade debt, you know, so he said, you know what?
00:36:20.000Why don't we just do original issue low grade debt?
00:36:23.000So Ron Perlman and all these other corporate raiders, as they were known, they went to Mike Milken.
00:37:23.000Yeah, because then they could claim that you were offering advice, and they lost money, let's say, and then you're saying, okay, you gave me unlicensed financial advice.
00:37:32.000But you've mentioned, you know, that people should buy Bitcoin, haven't you?
00:37:36.000Yeah, because it's not it's I'm saying Bitcoin is a substitute for gold and it's a substitute for the dollar.
00:37:42.000This came up recently because a lot of journalists are saying they don't write about Bitcoin because they consider it to be a conflict in some way because they don't own a Bitcoin.
00:37:52.000They wouldn't own Bitcoin or write about Bitcoin, etc.
00:37:54.000But we're talking about a substitution for the base layer of money from dollars to Bitcoin.
00:40:35.000Over the past six months, the value of that thousand dollars is now the equivalent of like a hundred or two hundred bucks before it, like the year before.
00:42:08.000Individual sovereignty is quite difficult.
00:42:11.000It's not easy to learn how to hold your own Bitcoin.
00:42:14.000So they want to sue somebody if Jamie Dimon Yeah, and there's the infrastructure of the financial markets in terms of custodianship and things like that that are important for the workings of the day-to-day financial are being put in place to now embrace Bitcoin so that banks can have proper custodian of these coins and companies like MicroStrategy run by Michael Saylor can put a billion, two billion dollars into it and legitimately so.
00:42:38.000Doesn't this also mean that people's debt is going down in value as well?
00:42:41.000Say, for instance, if you owe $10,000 on a car, and now hyperinflation hits, everything's more expensive, you still only owe $10,000.
00:43:11.000Whereas in Zimbabwe or Weimar Germany or America today, it's an inflationary depression.
00:43:15.000And it's because the powers don't want to give up.
00:43:18.000They want to inflate their way out of this because, as you point out, if you have a lot of assets, the value of those assets are going to keep skyrocketing.
00:43:27.000Along with Bitcoin, but a lot of other assets are like, obviously, if you're trading, if you have a massive lumber or things like that.
00:43:34.000But for the average person, though, they don't have assets.
00:43:37.000So they simply see it reflected in the price of living and for food and energy.
00:43:42.000And so their quality of life, it will take a severe drop.
00:43:49.000It's been pointed out that in the Weimar Germany you saw speculative attacks essentially from the wealthy against the Deutsche Mark, the Reichsmark.
00:44:00.000And that is that they used their leverage and their ability to borrow and racked up huge amounts of debt in Reichsmark and bought things like corporations, land and property.
00:44:12.000So that did happen from some industrialists in Weimar Germany.
00:44:17.000And you could say that is happening today as well, that these corporations and wealthy people, that's why Amazon is borrowing tens of billions of dollars right now, because they can, and they're going to buy assets.
00:44:55.000Well, when the Hong Kong thing was going on, a lot of industries and a lot of ultra wealthy individuals were like, come on, leave China alone.
00:45:54.000And the thing about her is that you've got a lot of people in America that know what it's like to live like a hedge fund manager.
00:45:59.000Do nothing and get free money from the government, buy assets, buy stuff, and do nothing.
00:46:03.000That's the way a lot of rich people, they just get, like again, Buffett or some of these other folks, they are literally welfare bums.
00:46:11.000They just get free money from the government and they don't do anything.
00:46:14.000They don't add anything to the economy.
00:46:16.000And so a lot of people are saying, you know what, now that I live like Ken Griffith, who's a hedge fund manager at Citadel, who puts Ben Bernanke on his board of directors, who gets involved in the GameStop fandango, who gets bailed out and uses the money to bail out his subsidiary Melvin Capital from the money he got from the government to bail out the year before.
00:46:48.000GameStop is like Wall Street, Occupy Wall Street, but deeper.
00:46:52.000So Occupy Wall Street can never get inside the system.
00:46:54.000The GameStop Reddit guys got into the system.
00:46:57.000They recognized that GameStop, the stock had been, there were counterfeit sales of many shares that didn't exist, but they were being sold.
00:47:04.000Naked short selling, is that what it's called?
00:47:29.000and J-PAL will say, oh, you know, actually, you know, rates went up a little bit six months ago, and we reduced our asset purchases by 2%.
00:47:36.000The fact is, on a net basis, when you look at all central banks, all the major central banks around the world for the last 20 years, there's never been a one single day that they haven't expanded their balance sheets and done But the GameStop thing is working within that system.
00:47:54.000That's a, you know, relentlessly pessimistic sort of doomed system where these, you know, the command and control people in charge of our economy They'll never let anybody fight back.
00:48:06.000They'll never let you protect yourself.
00:48:12.000Bitcoin allows you to just exit the system.
00:48:15.000As Christine Lagarde warned recently, she said we must stop Bitcoin because it's an exit, an escape valve from our system.
00:48:24.000You know, she's telling you the truth.
00:48:26.000And that's like, you know, once you exit that system and you become relentlessly optimistic, as we are in our Telegram group over at Orange Pill Podcast, you know, we, uh, you don't, you don't need to be, um, are you looking at my, I, you know, my, oh, my, my, my plan was like, I thought I, I thought I looked like Clint Eastwood with my, with my poncho.
00:48:50.000And then I realized Clint Eastwood doesn't really, you know, Yes, I am Christine Lagarde!
00:51:16.000I mean, if you can keep getting your wages raised, but the price of food goes higher than they're raising the wages, you're getting a cut in pay.
00:51:24.000That's what happens in Argentina, Venezuela.
00:51:29.000They keep printing like mad, but they can't control inflation.
00:51:33.000And the policymakers will say there's no inflation because their banking constituents want that 0% money to keep consolidating and mergers and acquisitions and leveraged buyouts.
00:51:43.000So they say it's at 1.6% even though it is a patent false.
00:51:47.000But the supply situation is going to be something we can't hide.
00:51:52.000So you have the shortages of all these microchips that's affecting all sorts of the economy.
00:51:58.000The problem with labor is a real genuine problem.
00:52:01.000Just on the drive up here, we saw hundreds and hundreds of signs all over the place begging people to come apply for jobs.
00:52:10.000Even in the middle of a field, like, there was a sign, Domino's is looking for drivers.
00:52:15.000Yeah, a bunch of cows and a sign advertising for Domino's jobs.
00:52:40.000The mindset, the psychology is what is really important to hyperinflation or whatever.
00:52:45.000I mean, but the other point I want to make is like I was just retweeted a story a day or two ago about in Durham, North Carolina, which is a pretty big city outside of Raleigh, and they can't find 911 operators.
00:53:01.000They had to admit that they've been diverting calls to Raleigh overnight because there's The economy's been hollowed out, right, through private equity deals, cheap money, borrowing, and debt.
00:55:15.000Then you put the wristband on their hand, and then you push slightly into their body, and they won't fall over, but you can actually, like, hang, because you're pushing towards their center of gravity.
00:55:26.000Salespeople, I would see them in these malls.
00:55:42.000The FTC would come in and say, you gotta, you gotta pay us five million dollars, and they go, oh no, we only made ten, here's your five, here's your cut.
00:55:49.000And then they take that money, and they do the same thing with a new company, a new entity, and they sell trash products, pay their fine, start a new company, trash products, and they get, you know, destroyed, shut down, but the government's getting a cut of it.
00:56:01.000So instead of actually policing these companies and saying, stop doing this, they're like, you know, so long as we get money, it's called the captured regulator.
00:56:08.000So the SEC and Elon Musk proved this brilliantly when recently he broke some laws and he openly mocked the SEC.
00:57:26.000Just to a speculator, and therefore they don't have the risk of their product arriving to market and losing everything, because they need it to plant the next season.
00:57:37.000But with the financial derivative, you had the S&P futures and bond futures and money market futures and forex futures, so it gave banks the way to speculate on money itself in a highly leveraged way.
00:57:47.000And that was the beginning of financial derivatives.
00:57:49.000That's the beginning of when we have a global Ponzi scheme of banks essentially trading on inside information with each other on financial shenanigans in a way that was incredibly.
00:58:02.000But you're right in the sense that at some point, the derivatives market became bigger
00:58:11.000So the derivatives market should only be a fraction of the underlying market.
00:58:15.000To give you an example of this, in the oil market, for every barrel of oil, there's something
00:58:18.000like 60,000 barrels in oil derivatives.
00:58:22.000That's how leveraged this whole thing is.
00:58:24.000For the global economy, which is, let's call it $100 trillion global economy, there's more
00:58:30.000than a quadrillion in derivatives, right?
00:58:32.000The derivatives market is a multi quadrillion dollar market.
00:58:36.000So an example of that would be like if a company loses $6 million in assets or something, but people bet on that they can make $60 million on that $6 million loss in a derivative.
00:58:46.000Well, one great milestone in the derivative business was the credit default swap invention by Blythe Masters.
00:59:01.000Instead of Exxon suffering financial calamity from that, Blythe Masters invented the credit default swap, where she was able to strip out bonds from bond interest and sell the interest separately, essentially, and insulated Exxon from that disaster.
00:59:16.000So they took the event, which would have been a liability, and they turned it into a non-event, effectively.
00:59:21.000So that's just what we call financial engineering.
00:59:26.000And so you could say that it's a way to slice and dice securities into all different things.
00:59:31.000If you go to 2008, the subprime crisis was a derivatives crisis because they took subprime mortgages, which have a high probability of defaulting, And they mixed it with a AAA-rated government bond, and then they sold that mixed package as a tranche to a pension fund with the idea that, well, the probability of this collapsing is so minute that we're going to give it the same rating as the bond, a AAA rating.
01:00:01.000So what happened was, for the first time in history, you had a housing crisis over the entire country.
01:00:07.000And so the subprime market collapsed spectacularly.
01:00:11.000And instead of fining or penalizing the banks that package this garbage, even in testimony, they told Congress that these were bags of expletive that they were selling to Goldman Sachs.
01:00:23.000Not only did Goldman Sachs knowingly and openly sell bags of expletives to clients.
01:00:39.000They sold their own client short to make money on the collapse of the client that they knew was going to happen because they had sold them the bags of excrement.
01:00:46.000So that's how insidious and awful and corrupt this whole system is.
01:00:50.000It's kind of like encouraging your wife to go skydiving and then taking out a massive life insurance policy on her.
01:00:58.000And then selling short the airline company, the skydiving company, knowing that they're going to be sued out of existence.
01:01:05.000I have to also point out that you know while we're talking about inflation this is the thing that's so topsy-turvy about everything and why we have such a chaos in our economic system is those derivatives are collapsing and that is a black hole and that is a huge amount of deflation right so if that's worth nothing but it's right now on paper worth a quadrillion That's a lot of money.
01:01:30.000That's like many, many, many, many, many, many trillions that we'd have to print every month just to break even on that.
01:02:46.000I've been in this business for 10 years.
01:02:48.000And no one knows more about than I do.
01:02:51.000And it's a gateway drug to getting wrecked.
01:02:55.000So people think that they are smart enough to trade altcoins in a way that they're going to get more Bitcoin or they're just going to be in it for a minute.
01:03:04.000But the fact is that once you step away from Bitcoin, you're entering the gambling casino.
01:03:11.000If you go to Vegas and you go across the room with all the slot machines and you ask a hundred people if they're winners in Vegas, a hundred people say, yeah, I win all the time.
01:03:21.000They're sitting there with a smoke and a cigar, you know, with threadbare with nothing on their back.
01:03:45.000I'm not saying Dogecoin technologically or their infrastructure, their code.
01:03:49.000I'm saying a bunch of regular people, young people who had no interest at all in any capacity with cryptocurrency, all of a sudden now the door was opened to at least walking into the room.
01:04:02.000And if at the end of it, 10% of the people or 1% of those people who normally would never be involved are like, I'm going to buy Bitcoin with it because that's the real asset.
01:04:10.000So they bought some Dogecoin as a joke.
01:04:23.000If somebody wants to go into the speculative world of gambling on douche coins, And ultimately, all that capital, the size of the market is expanding, right?
01:05:16.000So people who bought it last week on the, you know, Elon Musk on Saturday Night Live at $0.72 or $0.74 a coin, they're sitting at 30 or 40 percent losses today.
01:05:27.000And they're wondering what the heck am I going to do?
01:05:29.000It's going to scare a lot of people out.
01:05:31.000They're going to be there to not enter into the arithmetic of losing.
01:05:34.000The amount of percent gain you need to break even once you lose 10 percent is more than 10 percent.
01:06:20.000And I was like, because I'd rather have the Bitcoin.
01:06:23.000Why would I why would I give it up for anything?
01:06:25.000You know, Tesla says you can buy a Tesla with a Bitcoin.
01:06:28.000I'm like, I'd rather have the Bitcoin.
01:06:30.000It's like, why would I spend a million dollars on a $50,000 car?
01:06:33.000Bitcoin's going to hit a million bucks.
01:06:35.000And I think it's going to be a lot faster than most people realize.
01:06:37.000So I guess the challenge is right now, should people, you know, should hypothetical people who are working just be buying as much Bitcoin as possible, but keeping some of the fiat for regular use, rent, food?
01:06:50.000Because you don't want to spend the Bitcoin.
01:06:53.000At what point are you like, OK, now I can spend Bitcoin?
01:06:56.000When it becomes greater parity to gold.
01:07:01.000So gold's worth about $10 trillion, let's call it.
01:07:03.000Bitcoin's worth around $1 trillion or so.
01:07:05.000When you see Bitcoin trading at parity to gold at around $500,000 a coin or $10 trillion worth, then I think it'll be transitioned from the pure only store of value to store of value and medium of exchange.
01:07:20.000As such, although on what's called the second layer with Lightning and other applications built on top, people are using it for transactions every single day.
01:07:29.000And a lot of people who do transact in Bitcoin that might spend Bitcoin, let's say $1,000 worth of Bitcoin, they'll immediately buy $1,000 to replenish that.
01:07:37.000A lot of people the most intelligent thing you can do is dollar cost averaging, which is just every single day or every week or every month, you simply put in 10 bucks, 100 bucks or 1000 bucks into Bitcoin on a regular basis.
01:07:48.000You know, we work with I think, you know, Swan Bitcoin is a company that specializes in this.
01:08:14.000The entrenched, you know, the establishment in these markets don't want to the competition and they don't want people taking money out.
01:08:21.000Because once a lot of people understand that, you know, the saying goes, not your keys, not your Bitcoin.
01:08:26.000You take the keys off these exchanges and these products and you and so you're taking money out of the system.
01:08:31.000So for if you're somebody whose business is accumulating assets under management, AUM, and that's a negative for you because people are taking all their assets off and they're they're putting into cold storage.
01:09:00.000And but that is changing quite rapidly, as Paul Tudor Jones, very famous hedge fund manager, said he believes inflation is here and he owns a lot of gold.
01:09:09.000But he says Bitcoin is the fastest horse in the race.
01:09:14.000How long until you think Bitcoin reaches half a million?
01:09:17.000Well, I've got a price target for 2021 of $220,000 per coin.
01:09:24.000Based on the halvings that we've had every four years, we've had three halvings, and typically you see these types of price moves in the year.
01:10:59.000And what's funny is, so I remember when you guys were promoting Bitcoin like crazy, and I was just watching it like, yeah, but now it's at, you know, $5.
01:11:30.000I was buying though so so you know what I like I'm like man I should have bought I'll buy some I'll buy a little bit but I never went gung-ho I never went full in I just bought a little bit here and there like yeah well I'll just have some well it's never too late you know this it's it's gonna continue to go up you know on this financial advice question it's like We're setting the table.
01:11:48.000We're saying, look, here's inflation, here's your options, here's what people are saying, you know, and make your own choices, do your own research.
01:13:23.000And there are a lot better companies then to invest in.
01:13:26.000But if your objective is to, everything that Bitcoin offers, and as we've discussed about it, and that's your objective, there's Bitcoin.
01:13:34.000If you want to get involved in something called Ethereum, which is some software that is buggy and it's centralized and it has a track record of malfeasance, That's an option people want to make.
01:15:29.000So I tell these stories about how I wish I bought Bitcoin, but the reality is just standing next to you guys, hearing you guys talk about Square.
01:15:35.000And then what actually... And Square is up a lot.
01:15:40.000So for those that are familiar with when I went on the Joe Rogan podcast with Jack Dorsey, I said before we started the show, like, I should do a disclaimer that I own some shares in Square.
01:15:48.000Not that much, like very, very little, because I was broke when I bought into it.
01:15:51.000But now it's like... Yeah, well, we have some gold and silver from our gold and silver days, but we use it as collateral to buy Bitcoin.
01:17:15.000When you have what I think is going to be a very troubling time and you need to move and leave, let's say, the country, for example, you can't really take your property, but you can take your Bitcoin.
01:17:25.000Just memorize a C phrase and you can go through the airport naked and you can have any amount of Bitcoin with you.
01:17:31.000But it's... I mean, you don't want to just only have Bitcoin, right?
01:17:35.000You want to have other things, I'd imagine.
01:17:37.000Like, you want to maybe focus heavily on Bitcoin, but I'd imagine... Well, what happened over the last 10 years is that since the price went from $1 to $55,000, it has now become... It dwarfed everything else in the portfolio.
01:17:54.000That's like better than any stocks or whatever, because, you know, as as you see, like somebody, somebody like Biden can come along and say, OK, capital gains is not 20 percent.
01:18:37.000But I would say in an extremist, Bitcoin is probably the most secure because gold and silver can easily be confiscated by the government or stolen.
01:18:46.000And it's tough to insure and keep in a vault.
01:18:49.000And you have your house can be taken away as houses have been taken away.
01:19:49.000The best place to go for information about that is called Bitcoin.page and that is run by Jameson Lopp and he's like one of the top security experts in the space.
01:19:57.000So, you know, I wouldn't take your security advice from, you know, from us right now.
01:20:03.000I would go to the top guy, Jameson Lopp, Bitcoin.page, and it has all the security stuff, how to create the best passphrases and all that sort of stuff.
01:21:10.000You see, before the Renaissance, at the end of the Dark Ages, you see bubonic plague, you see the Inquisition, you see all sorts of stuff start to happen at the same time because we're vibrating as a culture and a people and things are going crazy.
01:21:51.000On Monday, the Worcester County District Attorney identified the man as Zachary Richardson, a Leicester resident.
01:21:56.000So I don't know if we have anything on this guy or what his motivation was.
01:22:00.000But regardless, look, we see these stories and I think it's fair to say maybe they're just random attacks.
01:22:05.000If we can't read the guy's mind, we don't know.
01:22:07.000But I think everything you've mentioned, the signs we're seeing pop up at all these restaurants where people are refusing to work, people are ready to explode.
01:22:48.000Whereas the problem is the paper money.
01:22:50.000But they will never address this problem because they themselves are the chief beneficiary of the graft, of the grift, of the Ponzi scheme.
01:22:59.000Occupy Wall Street was legitimate early on.
01:23:02.000You had conservatives, libertarians, the left, left and right, complaining with the big banks.
01:23:06.000You had the Tea Party movement upset with the politicians.
01:23:09.000You had people ready to storm onto Wall Street, angry.
01:23:13.000And then all of a sudden, within a couple of weeks, the protest narrative started switching into white privilege, a progressive stack, racial hierarchies.
01:23:23.000And I would be willing to bet I'm not saying it's true that special interests were like, how can we get them to stop pointing the finger at us?
01:23:34.000Make the poor people point at each other instead of at the big banks, the financial institutions, and the corrupt revolving door policies of the government.
01:23:41.000And then all of a sudden, what happened?
01:23:42.000Conservatives started leaving, the libertarians left right away, and it became a woke fest where people were like, the white people can't speak anymore, and then people lost interest.
01:23:49.000Well, look who's the most demonized of all in all of this.
01:23:54.000The economic bottom, the ones who've been harmed the most from this U.S.
01:23:58.000dollar reserve, from the Triffin Dilemma, from the Thracidity Strap.
01:24:02.000Like, we've demonized the And they're called fascists, and they're called white supremacist Nazis, you know, the ordinary person.
01:24:13.000And it's like some fat truck driver from Dubuque or something.
01:24:15.000Yeah, so they're the ones that are demonized because they want you to point to the victim as that's the person.
01:24:23.000That, you know, rather than this economic system.
01:24:26.000It's funny how many of these leftists who, you know, I used to, I've known many of them since I could buy Wall Street.
01:24:31.000They post this cartoon where there's three people sitting at a table.
01:24:35.000There's a rich guy with a big stack of cookies, a working class guy with like two cookies, and then a poor person with like one cookie.
01:24:41.000And he's like, that guy wants to steal your cookies to make them fight each other.
01:24:44.000And I'm like, how do they recognize this?
01:24:46.000And then simultaneously defend massive multinational corporations, cheer on the FBI and Joe Biden.
01:24:51.000It's like, all of a sudden, the tribe was more important than anything they ever protested.
01:24:54.000Well, you've got a good perspective on it, because you kind of came out of that.
01:25:09.000He's a guy who was there with his camera and doing brilliant investigative journalism, on-the-scene journalism.
01:25:15.000You know, but everyone in the new media space, or the alt media space, also marginalized, also pushed to the side, and for the same reasons.
01:25:25.000Because the light does not want to be shined on the actual underlying root causes of these problems.
01:25:33.000And so what we do is similar, but we focus... They come up with that word, alt-right.
01:25:57.000Are we not going to see a period of tumult, violence and chaos before it gets better?
01:26:02.000Um, we have the cable news, which is different from back in the 1960s or 70s, but look at documentaries about when Max was like a little kid.
01:26:13.000There were like a thousand fire bombings of, of government buildings from the weather underground and other groups like that.
01:26:20.000The, the Sibonese liberation army, like it was crazy back then.
01:26:24.000Was there, was there multifactional violence targeting each other?
01:26:27.000No, they were targeting the government.
01:26:29.000But now it's people against people because, of course, we don't, you know, it's essentially the same COINTELPRO sort of situation.
01:26:36.000You turn the people against each other.
01:26:42.000And I always preface this with, it was a Princeton professor who said we're in a cold civil war.
01:26:47.000It was, you know, the Atlantic and New York mag who mentioned that there are high probabilities.
01:26:50.000You have Thucydides trap, you have the fourth turning.
01:26:53.000And what people need to understand about the Civil War is that Americans often imagine the American Civil War as their reference for what Civil War is.
01:27:01.000So we recently had someone on who said, if it happens here, it'll be more like Syria.
01:27:05.000You'll get maybe 24 or 30 factions, totally unrelated, fighting with the government and fighting with each other in areas, and it would just be chaos and bombings and shootings.
01:27:14.000And it kind of feels like hopefully, I'll say hopefully doesn't happen, but we're already seeing the seeds planted of this.
01:27:20.000We're seeing various cells of Antifa groups with different names.
01:27:24.000They call themselves different things in different parts of the country, but they coordinate with each other to go after mutual enemies.
01:27:29.000You then have right-wing militia groups.
01:27:31.000We recently had in Portland, An armed group of, you know, fringe leftists marching around with full blackout gear, body armor, a couple of them in full blackout with body armor and rifles, and they were blocking traffic, essentially doing patrols.
01:27:45.000A guy gets out, they start banging on his truck, he tells them, you know, get out of the way.
01:28:15.000One guy got shot twice in the chest by one of these leftist guys.
01:28:17.000And of course, you've got right-wing groups.
01:28:19.000You've got the people storming the Capitol.
01:28:21.000I think we're walking through the doors of different factions of Disparate ideologies some that agree with others and some that don't ready for each other institutions They help or the glue to hold the country together the education institution education has been destroyed by debt and being overpriced So the education is now no longer available to the masses anymore.
01:28:42.000It's become a privilege amount for a few and Then you have a health care became financialized commodified and it's unaffordable or it's totally messed around with and You have the infrastructure is breaking down.
01:28:56.000And all these institutions, why are they so fragile?
01:28:59.000It's because they've been hollowed out with these private equity groups and Wall Street using all the leverage buyout and the debt and the funny money.
01:29:06.000And now we're seeing the reaping the whirlwind of 40 years of... The scary thing is, it's kind of like Belfast, what you're describing there, if you've ever been there and understand the story there.
01:29:17.000And it's still going on, like you still see some stuff happening there.
01:29:51.000They were trying to clean up the militias and like after the Good Friday agreement.
01:29:56.000And there was a huge sign on the outside of this building for sale.
01:30:00.000And right next to it, handwritten, not for sale property of the UDF.
01:30:04.000So nobody bought it in the in the eight years it was for sale because they're like, OK, I'm not going to get firebombed by that.
01:30:10.000But that's but they're like Again, like it's still going on the troubles are still going on it starts nominally with like Protestant versus Catholic and you know the Queen versus like independent Ireland and
01:30:54.000We talked about predictions for the year and we got some things eerily right.
01:30:59.000A bunch of fans of the show were like, look at these clips from your show in January of last year, that's freaky.
01:31:03.000And it's funny because it feels like we're frogs in a pot with the water slowly coming to a boil.
01:31:08.000As much as I've been talking about so much of this, it's like every day it seems like more and more is happening that makes it feel like we're actually, we're in it and it's getting worse.
01:31:17.000And the scary thing is to realize we're not wrong.
01:31:25.000They want us to think it's getting worse, so we don't focus on the Federal Reserve.
01:31:28.000From my Facebook page, which is a great barometer for me and has always worked well, and for 2016, I could see that Trump was going to win based on what I was seeing.
01:31:40.000Half my family is Democrat and really Democrat, and half the family is Republican and will only vote Republican.
01:31:47.000And of course, The Republican side are all military and police and the other side are all like academics and Wiccans and stuff like that.
01:31:56.000And the Democrat side is like vicious now.
01:32:00.000It's impossible to go on my Facebook page because if one of my Republican family like leave a message like oh I voted for Trump and it's just like an avalanche of all my like left-wing friends, my Democrat
01:32:12.000friends are just like, you Nazi! And I'm like, this is my Facebook page, this is my family. But what's
01:32:18.000scary is that those people can't explain themselves. No! And I, we talk to conservatives all
01:32:24.000the time who have, I mean, there's a wide range of political ideologies outside of
01:32:29.000this tribalist, Trump deranged, and now without Trump it's even creepier because I don't
01:32:34.000even know what they're mad about at this They're still so mad.
01:32:51.000I know hackers from back in 2010, 2011, people I was hanging out with who were anti-establishment.
01:32:57.000People who were out in front of jails because their buddies had been arrested by the feds for non-crimes.
01:33:03.000People who had thrown parties, no joke, hackers, who threw parties for white nationalists because they were hackers who were anti-establishment.
01:33:12.000These people today are cheering on the federal government.
01:33:15.000They're they're cheering for law enforcement. They're they're pro-establishment. They're pro-democrat
01:33:20.000They're pro-joe biden and i'm like what happened to those people to where they've thrown away any semblance of
01:33:26.000principle or ideology and just said Whatever the establishment says goes because they fear it's
01:33:31.000all going to be taken away So he's talking about the elites coastal elites the media
01:33:38.000elites They never had a moment as they have now for many years where people with pitchforks and torches are outside their home and they're protesting and they are frightened.
01:33:51.000Because it was very, very cozy for decades to just be behind a wall and to be an expert or a pundit or part of the elite.
01:34:00.000And suddenly that's all being ripped apart and they are frightened to death.
01:34:06.000So they're calling the FBI and saying, I know that I protested you for years and I know that I'm against the invasiveness and the lawbreaking that you're committing along with the CIA.
01:34:17.000But I'm not talking about rich people.
01:34:19.000I'm talking about people who slept on the ground at Occupy Wall Street.
01:34:22.000I'm talking about people who are like 20 years old, had 10 bucks to their names, had the system is broken, and were living on the streets, are now pro-establishment, pro-FBI.
01:34:31.000And so when the FBI raided Giuliani's office, I see all these posts from these activists, these hackers, and they're saying, they're cheering and they're celebrating, they're posting beer emojis and clapping.
01:34:43.000And I said, woo, go FBI, go centralized federal government and law enforcement.
01:34:47.000And I was like, it's so great to see how you guys have been completely de-radicalized.
01:35:43.000They were a humiliated population post-World War I.
01:35:46.000Well, we're a humiliated population as well here, and I think, you know, we have these two MSNBC versus Fox, and they're like pushing the two sides.
01:35:56.000MSNBC's ratings are totally in the gutter now, a fraction of Fox's, but it's not just Fox, it's just I think there, even if you watch Fox, if you're getting like Tucker Carlson, you're getting a more discerning worldview, albeit far from perfect, but Tucker does have on opposition personalities.
01:37:43.000I mean, my attitude is always like, look, if we do a whole show where we're like, Facebook is bad, and then they pay ad money to make us fund us in saying they're bad, I'm not worried about my audience being like, I heard what Tim had to say, but that ad from Facebook really convinced me.
01:37:57.000No, but look, on YouTube and on the podcast, we have like a general ad roll.
01:38:06.000Maybe we can try and figure out something for members.
01:38:10.000The problem is people need to understand the members-only stuff is really, really expensive because we're paying the bandwidth costs for all of the TimCast.com stuff.
01:38:17.000So we're talking tens of thousands of dollars.
01:38:37.000You know, that story we started off with about the gasoline pipeline, the gas pipeline, it's just like, Who clicks on those freaking links that these scammers send?
01:38:46.000After so many decades, how do you do it?
01:39:49.000But you gotta understand, too, it's really, really easy to do.
01:39:54.000Because if you read about social engineering, which is 99% of all hacks, it's not someone breaking the computer, it's someone tricking another person.
01:40:03.000I mean, it's extremely easy to embed a remote access tool into any kind of program.
01:42:14.000Yeah, but he's has his audience declined since he went to Spotify like we we wanted to watch He interviewed somebody recently or I was like, oh, I'm gonna go to YouTube.
01:42:23.000I googled it and it was like only clips I was like, oh, that sucks.
01:42:56.000And I'll say this, when he was on iTunes, iTunes being the biggest podcast platform, when you're number one, a regular person who's never listened to a podcast before opens up the podcast app and your face pops right up, that is real estate you cannot pay for.
01:43:14.000They basically gave Joe enough money to where he was happy doing his show.
01:43:18.000But also I think, you know, I wonder too if Does Joe need to be the biggest podcast in the world?
01:43:24.000I mean, I mean this personally, because I'm wondering, I can't read the guy's mind, and I'm sure, you know, you know, I could probably just ask him about it, but at a certain point, you don't want to be the big, the biggest, you know, player in the room, because he keeps getting attacked by the media.
01:43:36.000I'm sure he's happy to be like, dude, I just want to hang out with my friends and talk about things I find interesting without being harassed by these people all the time.
01:43:42.000Yeah, but those paid walled, you know, those You know, this whole motto of Washington Post and New York Times and this breakdown that's happened since 2016 of like attacks on alt media and that we need trusted sources, authoritative sources.
01:43:59.000And then you go to like the Washington Post will be like, urgent thing about election safety and security and all this sort of stuff.
01:46:16.000And I've actually started blocking people on Twitter.
01:46:19.000I'll tweet something like, totally nonsensical, you know, I bought it, I made a cheeseburger today and I put cheddar on it and at the top, the immediate comment is, this coin is going to the moon!
01:47:03.000I just lost my house I had I had Bitcoin on yeah, and then I went But um, I think they do it for the lulz just like remember back in the days when I and you know anonymous existed and they were all the the lulz truck what was it lulz
01:48:30.000When Bitcoin hit $20K for the first time, and there were these stories emerging where people were like, I mortgaged my home to buy Bitcoin.
01:48:37.000And then when it tanked down to like $10, they panic sold.
01:48:40.000And if they held on to it, they'd have cleared everything.
01:48:47.000I mean, I realize I did mention I collateralized my gold and silver to buy Bitcoin, but I did so in a moderate way, and I am a former professional Wall Streeter, so I do have some experience.
01:49:38.000Amalashok says, Tim, here's $10 earmarked for a limiter compressor plug-in for your soundboard to keep your more dynamic guests from blowing up ears.
01:51:04.000First of all, mining is migrating out of China.
01:51:05.000A lot of it's coming to America, particularly in Texas, because it's all about cost of energy and you get a lot of cheap energy in China, in Texas.
01:51:12.000Number two, a lot of the mining in China is pools and that pools are from all over the world.
01:51:20.000Most of their outsourcing computing power.
01:51:22.000Yeah, but it's gone in different countries and it's leaving China.
01:51:25.000It's moving to Texas and Texas is becoming a mining powerhouse.
01:51:28.000And it's part of the beauty of Bitcoin is what's called game theory is baked into the protocol.
01:51:34.000You've got these three major elements to this game theory.
01:51:36.000You get the miners, the nodes and the developers.
01:51:38.000And they're all working together, but also competing with each other.
01:51:41.000And as a result, you have maximum distribution or decentralization.
01:51:46.000And everyone is incentivized to keep it decentralized while maintaining this protocol that emits coins every 10 minutes and offers this way out of the system.
01:51:56.000The number one thing about Bitcoin that I would emphasize is that it separates state from money.
01:52:01.000We've never had that ever in the history of the world.
01:52:03.000All money has been controlled in some degree by the church or the state or some central authority or a government.
01:52:08.000This is the first time we have actual hard money that's completely separate from the state and you get individual sovereignty.
01:52:14.000So for all the people that are distressed about the riots and the inflation and the disunity going on, with Bitcoin you have individual sovereignty.
01:52:23.000You have mobility, you have agility, and you have community.
01:52:28.000And that's the most important thing about it.
01:54:09.000But the thing about it is that they... This is the problem with a lot of these douche coins is that because they have pre-sale and they are out there with bags of cash, they can hire really great lawyers.
01:54:22.000So they've taken on the SEC and the SEC is suing them for legitimate reasons.
01:54:26.000But they've got such a cadre of very, very high-priced lawyers that it's going into the courts.
01:54:35.000As we said before, the regulators are captured.
01:54:37.000So in my view, if the SEC, I'm not convinced that they are not simply looking to get a cut from that.
01:54:49.000The guys from the Ripple Foundation or whatever, I mean, it's so dodgy, but they were selling, they were dumping like billions of dollars a year onto bag holders.
01:57:54.000So it's better than gold in that respect, because gold is deflation is relatively scarce, just deflationary.
01:57:58.000It's more divisible, it's more portable.
01:58:00.000And here's the thing about Bitcoin, which you don't have with gold, as you point out, you need to stamp gold to make sure it's verifiable that that's gold.
01:58:06.000With Bitcoin, the transaction is the verification.
01:59:49.000Thousands of years later, you can pick the gold.
01:59:52.000So, you know, you would exchange gold as money now because you know that a year from now, someone will accept it in exchange for something else.
02:00:00.000Whereas fiat money, you know that a year from now, it'll lose purchasing power.
02:00:04.000And no fiat money in 300 years has avoided Trading is zero.
02:00:11.000Not even the British pound has lost ninety nine and a half percent of its purchasing power.
02:00:27.000That's not necessarily a good idea because to the extent that gold has utility value.
02:00:31.000And this is where I like I have a major disagreement with Peter Schiff.
02:00:35.000is that it actually detracts from its use as money.
02:00:38.000Because what you want from your money is pure price discovery based on people making transactions in terms of their valuation of what it's worth for them at the moment.
02:00:46.000If you start to say that gold has use as electronics, you start to infuse that conversation with an evaluation outside of what we're doing as person-to-person.
02:02:30.000I want to get back to the smart contracts.
02:02:33.000The opportunity costs gained by removing someone from the equation.
02:02:37.000So right now you send your dollar to the electric company, they have to hire someone to go turn the knobs and turn the electricity on for you.
02:02:42.000With Bitcoin, you send the Bitcoin to the electric company, the smart contract tells the computer program to activate.
02:02:48.000So you can remove that actor from the cost.
02:02:52.000You can build smart contracts on Bitcoin.
02:02:56.000It's really annoying when you're trying to set up electricity at your house, and I've got to call the guy, and they've got to send somebody out, and I've got to pay them, and they've got to confirm the payment.
02:03:02.000With Bitcoin, it's like, I send the Bitcoin, ding!
02:03:26.000And then they keep changing their name too.
02:03:29.000Imagine if instead, you walk to your house, you have a new house, you walk inside and there's your meter and it says, a barcode, a scan test.
02:03:38.000It says send to this address to turn on power and you just scan it and then the lights turn on instantly.
02:04:06.000All right, we got Colton Lindsey says, since January I've been dumping any fiat that I have into Bitcoin and leveraging it at 60 to 40 loan to volume ratio to pay my bills each month.
02:04:17.000I know this is ill-advised, but Bitcoin is untouchable.
02:07:09.000So they started doing something called Operation White Fax, where they spammed
02:07:13.000fax machines in Egypt with instructions on how to create dial-up internet.
02:07:17.000And so what people would do is, once the internet was down, take a phone line, plug it into their computer's, you know, old-school router, when it sneezes, and then it would call a certain phone number and give them dial-up access internet.