WEBVTT

NOTE
This file was generated by Descript <www.descript.com>

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Ladies and gentlemen,

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welcome to the

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Solari Report.

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This is Tim Caban

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and Catherine Austin

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Fitts with equity

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overview for the

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second quarter.

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We've been a

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little bit delayed.

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Farrell had to

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delay news trends

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and stories, and I

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like to have that

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geopolitical view

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before we dive

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into the market.

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So Tim, welcome.

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And I just have to

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say, you are one of

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the few financial

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planners in the

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world I know who can

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integrate everything

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with everything.

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Thank you, Catherine.

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It's a pleasure to

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be back with you

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for this discussion,

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and  I'm trying

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to find other

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people like myself.

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I'm still looking.

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So I'm always asking

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Tim, because people

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are asking us for

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financial planners,

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and Tim, being as

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successful as he  is

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full up, and    we

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keep looking for

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people who can

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also do a very

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full integration.

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So what I wanted

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to do today  is I

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wanted to really

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go through what's

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happening in the

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world and integrate

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it and bring it

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down to what you're

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doing with your

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money, your time,

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and the allocation

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of your investment.

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So let's just look

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at the title slide.

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During the second

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quarter, Robert made

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the most wonderful

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featured image

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for  for one of the

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money and markets.

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I was complaining

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that  the crowd was

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chasing Ponzi schemes

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and bubbles while Mr.

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Global was rolling

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up all their land

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and real estate and

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the real assets.

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And we were looking

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at Puck Illustration.

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I don't know if

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you've ever seen

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the Puck Magazine.

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It's    it was in

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the 1800s, and it had

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this sort of style

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of illustration.

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Anyway, so Robert

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went off and

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made this, and I

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thought it, it just

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expressed exactly

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what I was feeling.

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Yeah.

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It's terrific.

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I know.

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Our…  Tim and I are

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here to interest you

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in the real, and  and

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that's part of what

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we're gonna do today.

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So this is gonna

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be a little bit

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longer than usual.

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So the outline

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is simple.

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I wanna ask the

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big strategic

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question, which

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will  drive your

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asset allocation.

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Then Tim and I are

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gonna look at the

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market valuations,

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including the

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latest Rambus

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Chartology report.

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Then review some of

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the im- important

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trends, including

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the fact that we're

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entering into World

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War III, and then

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bring that down

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to your allocation

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choices So at the

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end, I'll go over  a

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resource section,

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and you can find

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a resource section

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in the commentary

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with related links.

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What Tim and I have

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done many quarters

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is focused on one

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topic that  responds

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to a question

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we get a lot.

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So how to find a

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financial planner,

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what to do about

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your insurance.

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And I've also listed

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others that we've

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done at the Solari

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Report, like how

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to find a bank.

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We just published

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something on how

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to find a lawyer.

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And so over time,

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we have a tremendous

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library of  of

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information that is

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very responsive to

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your questions  and

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particular questions

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you might ask.

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Another one we did in

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2024 is investing in

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gold and silver, and

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we did a sweep of all

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the links at the l-

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Solari Report to help

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you understand  what

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that world looks like

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and how to do it.

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So there's a wealth

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of information  in

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the library at

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Solari in the

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equity overview

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traditionally as well

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as other information.

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And you'll find all

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of it swept up in

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the Building Wealth

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curriculum  and I'll

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go over some of those

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resources at the end.

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So with that

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let's dive in.

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So let's ask the big

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strategic question.

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So Tim, this

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is one you know

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yes, for sure, and

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it's the question

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of the day.

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Yeah, so you need to

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decide which is more

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important to you.

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Is it the value

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of your assets,

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so wanting to make

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sure your assets

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go up in value as

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opposed to down in

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value, or do you want

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to make sure that

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those assets will

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continue to be yours?

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Because th- how you

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answer this question

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is going to result

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in a very different

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way of allocating

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your investments.

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Do you agree

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with that, Tim?

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I do, and I would

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say that this… the

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question is simple.

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It's a modified

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version.

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I used to say on

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bonds that you should

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care more about the

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return of your money

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than the return on

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your money, referring

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to the risk that a b-

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a bond could default.

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But this is like

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your personal

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Freedom defaulting.

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And so it's    it's

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a constant onslaught.

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You can ask the

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question simply,

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but to deal with

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it, it requires a

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multifaceted approach

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and awareness to be

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aware of everything

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you need to do to

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push back on this.

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And part of it

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is  promises of

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higher yield is

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attracting you into

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financing your own

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prison or  giving

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your money to a

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fraudster or chasing

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a Ponzi scheme.

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And    the worst

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to me is I don't

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wanna put my money

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in something that's

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gonna end up with

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a leash on it.

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Yeah.

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So an asset that

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where the leash

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is weaker  is

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better for me.

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But you've gotta

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decide this  and

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it's… You gotta

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be clear about it

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because oftentimes

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somebody will

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say, "   I care much

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more that it's gonna

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continue to be mine,"

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but then as soon as

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they then proceed to

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allocate accordingly,

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says, "   then the

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next thing I hear is,

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" I'm missing this up

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in the whatever."

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Yeah.

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It's  wait a minute,

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th- this is multiple

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personality disorder.

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Yeah.

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You gotta be…

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You gotta know

00:05:48.131 --> 00:05:48.942
what you own and

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why you own it.

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Yeah.

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And,

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If you ask this

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core question on

00:05:52.712 --> 00:05:53.671
every aspect of your

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life, it's a good

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way to  to evaluate

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Right.

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So Tim  one of the

00:06:00.792 --> 00:06:01.942
reasons Tim is such

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a smart financial

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planner, he's

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been part of our

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legislative effort.

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He's made an

00:06:06.431 --> 00:06:07.171
effort to get to

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know  and talk to

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his legislators in

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Pennsylvania, but

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he's been part of

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the last briefings.

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And in, in one of

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the last legislative

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briefings, we

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had a wonderful

00:06:17.702 --> 00:06:18.741
ally in Utah who

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said, " what you

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need to do is give

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people the option

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to disagree with you

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that the high-tech

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feudalism is where

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the system intends

00:06:27.822 --> 00:06:30.562
to go  but be able

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to agree with you.

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You want guardrails

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to protect against

00:06:33.902 --> 00:06:35.292
it  whether it's the

00:06:35.292 --> 00:06:36.271
intention or not."

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So we ended up making

00:06:38.051 --> 00:06:39.531
these four, doing

00:06:39.532 --> 00:06:40.772
a scenario design

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on the future of

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financial freedom,

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and as you can see,

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it's one axis is

00:06:46.741 --> 00:06:47.922
decentralized versus

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centralized, and the

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other axis is  plenty

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of options, analog

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and digital options

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on the left, and then

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complete digital

00:06:57.531 --> 00:06:58.492
control on the right.

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And of course, the

00:06:59.871 --> 00:07:01.111
scenario I'm always

00:07:01.111 --> 00:07:02.012
trying to avoid is

00:07:02.012 --> 00:07:03.142
high-tech feudalism,

00:07:03.142 --> 00:07:04.031
and that's what we're

00:07:04.281 --> 00:07:05.522
working at Solari.

00:07:05.522 --> 00:07:05.781
So-

00:07:06.412 --> 00:07:07.312
I would just quickly

00:07:07.312 --> 00:07:08.161
say there, Catherine,

00:07:08.162 --> 00:07:09.662
that the slide itself

00:07:09.681 --> 00:07:10.631
gives you the other

00:07:10.631 --> 00:07:12.452
options to allow

00:07:12.452 --> 00:07:13.551
for a discussion

00:07:13.851 --> 00:07:14.981
and allow other

00:07:14.991 --> 00:07:16.751
people to be right

00:07:16.751 --> 00:07:17.861
in some quadrant.

00:07:17.872 --> 00:07:17.892
Yeah.

00:07:18.451 --> 00:07:19.071
And that allow…

00:07:19.111 --> 00:07:19.971
And what that y- that

00:07:19.971 --> 00:07:20.751
legislator in Utah,

00:07:20.751 --> 00:07:21.482
I think, was saying

00:07:21.482 --> 00:07:22.321
was that allows them

00:07:22.321 --> 00:07:23.601
to have buy-in, and

00:07:23.601 --> 00:07:24.481
it builds rapport

00:07:24.482 --> 00:07:25.501
and communication-

00:07:25.912 --> 00:07:26.122
Yep

00:07:26.152 --> 00:07:26.992
…  that you can have

00:07:26.992 --> 00:07:27.421
a meeting of the

00:07:27.421 --> 00:07:28.371
minds, ultimately.

00:07:29.031 --> 00:07:29.401
Yep.

00:07:29.521 --> 00:07:30.382
And y- and you can

00:07:30.382 --> 00:07:33.071
also see why we all

00:07:33.071 --> 00:07:34.322
agree we want lots of

00:07:34.582 --> 00:07:35.711
financial options.

00:07:35.781 --> 00:07:36.161
Yes.

00:07:36.461 --> 00:07:37.181
We don't wanna get

00:07:37.201 --> 00:07:39.682
cornered    and

00:07:39.682 --> 00:07:40.321
we can agree

00:07:40.321 --> 00:07:41.141
on that without

00:07:41.152 --> 00:07:42.031
having to agree

00:07:42.031 --> 00:07:42.941
that the intention

00:07:42.942 --> 00:07:44.201
is, you know-

00:07:46.594 --> 00:07:47.474
it was interesting

00:07:47.474 --> 00:07:48.313
when we did this

00:07:48.344 --> 00:07:49.484
legislative briefing,

00:07:49.883 --> 00:07:51.464
98%, I thought it

00:07:51.474 --> 00:07:52.594
was 100%, but it

00:07:52.594 --> 00:07:53.174
turns out it was

00:07:53.174 --> 00:07:54.804
hu-  98% 'cause one

00:07:54.804 --> 00:07:55.904
person was undecided.

00:07:56.323 --> 00:07:59.334
98%  said that they

00:07:59.334 --> 00:08:00.313
wanted guardrails,

00:08:00.313 --> 00:08:02.313
even on- only 67%

00:08:02.673 --> 00:08:03.223
thought that the

00:08:03.224 --> 00:08:04.104
high-tech feudalism

00:08:04.263 --> 00:08:04.864
was the most

00:08:04.864 --> 00:08:05.804
likely scenario.

00:08:06.103 --> 00:08:06.453
Yeah.

00:08:06.933 --> 00:08:08.014
But everybody, no

00:08:08.014 --> 00:08:08.983
matter what scenario

00:08:09.013 --> 00:08:09.743
they thought was

00:08:09.743 --> 00:08:10.453
the intention of

00:08:10.454 --> 00:08:11.813
the system, wanted

00:08:11.813 --> 00:08:12.804
those guardrails up.

00:08:12.804 --> 00:08:14.813
So we've been-- We

00:08:14.813 --> 00:08:15.833
are now coming out

00:08:15.833 --> 00:08:16.653
of this meeting

00:08:16.653 --> 00:08:17.533
that we, wonderful

00:08:17.533 --> 00:08:18.433
meeting we had with

00:08:18.433 --> 00:08:19.884
allies in Idaho and

00:08:19.974 --> 00:08:21.543
Utah in Salt Lake.

00:08:22.224 --> 00:08:23.363
We are redoing our

00:08:23.364 --> 00:08:24.643
model legislation

00:08:24.673 --> 00:08:26.753
and  but we've also

00:08:26.753 --> 00:08:27.483
published several

00:08:27.483 --> 00:08:28.833
rulemaking comments

00:08:30.073 --> 00:08:31.853
because the Treasury

00:08:31.864 --> 00:08:32.703
and the financial

00:08:32.703 --> 00:08:33.614
regulators are

00:08:33.614 --> 00:08:34.553
taking comments

00:08:34.563 --> 00:08:35.893
on the Genius Act.

00:08:36.393 --> 00:08:37.933
And  it's very

00:08:37.933 --> 00:08:38.663
important to get

00:08:38.663 --> 00:08:39.393
those in before

00:08:39.393 --> 00:08:40.213
the Genius Act

00:08:40.213 --> 00:08:41.063
goes live at the

00:08:41.073 --> 00:08:42.544
beginning of 2027.

00:08:42.993 --> 00:08:43.823
One of the things

00:08:43.823 --> 00:08:44.823
we proposed to

00:08:44.823 --> 00:08:45.943
them is that

00:08:48.204 --> 00:08:49.453
that automated

00:08:49.453 --> 00:08:51.013
systems could flag

00:08:51.014 --> 00:08:51.843
something, but if

00:08:51.843 --> 00:08:52.813
you're gonna burn,

00:08:52.813 --> 00:08:55.033
seize, debank, or

00:08:55.033 --> 00:08:56.343
do  other things

00:08:56.343 --> 00:08:56.813
that could have a

00:08:56.813 --> 00:08:57.793
material harm on a

00:08:57.794 --> 00:08:59.013
person or a business,

00:08:59.544 --> 00:09:01.034
a legally accountable

00:09:01.034 --> 00:09:02.033
person has to make

00:09:02.033 --> 00:09:03.033
the final decision

00:09:03.982 --> 00:09:05.161
You can't automate

00:09:05.202 --> 00:09:06.882
that and have AI

00:09:06.891 --> 00:09:08.462
basically destroy

00:09:08.462 --> 00:09:10.062
businesses, right?

00:09:10.132 --> 00:09:11.161
Yeah, and  that to

00:09:11.161 --> 00:09:12.281
me is another example

00:09:13.222 --> 00:09:14.911
of somewhat of a m-

00:09:15.002 --> 00:09:15.942
of a middle ground.

00:09:16.352 --> 00:09:18.462
Because I think many

00:09:18.462 --> 00:09:19.891
people would say, I

00:09:19.901 --> 00:09:21.881
would say that    the

00:09:21.882 --> 00:09:22.781
search, the constant

00:09:22.781 --> 00:09:23.251
searching is a

00:09:23.252 --> 00:09:23.821
violation of the

00:09:23.822 --> 00:09:24.521
Fourth Amendment.

00:09:25.021 --> 00:09:27.322
But to acknowledge

00:09:27.681 --> 00:09:28.741
that it's allowed

00:09:28.742 --> 00:09:29.521
to be flagged,

00:09:29.531 --> 00:09:30.581
which already is

00:09:30.581 --> 00:09:31.722
problematic, but

00:09:31.722 --> 00:09:32.262
you're giving

00:09:32.262 --> 00:09:32.872
something to get

00:09:32.872 --> 00:09:33.962
something, and

00:09:33.962 --> 00:09:34.812
really focus on the

00:09:34.822 --> 00:09:35.891
ultimate danger.

00:09:38.491 --> 00:09:39.931
We had one subscriber

00:09:39.932 --> 00:09:40.521
who made a very

00:09:40.522 --> 00:09:41.192
smart comment.

00:09:41.201 --> 00:09:41.682
She said, "I

00:09:41.691 --> 00:09:42.491
saw people do

00:09:42.491 --> 00:09:43.491
psychopathic thing."

00:09:44.182 --> 00:09:46.341
human beings do

00:09:46.351 --> 00:09:47.541
psychopathic things

00:09:47.541 --> 00:09:48.741
during COVID- … so

00:09:48.802 --> 00:09:49.481
just because you have

00:09:49.482 --> 00:09:50.281
a human there doesn't

00:09:50.291 --> 00:09:51.041
make it better.

00:09:51.232 --> 00:09:51.492
Yeah.

00:09:51.492 --> 00:09:52.021
And I don't think

00:09:52.021 --> 00:09:52.811
what they understood

00:09:52.811 --> 00:09:54.771
is having a human th-

00:09:54.771 --> 00:09:56.021
there makes it much

00:09:56.021 --> 00:09:57.301
harder to do more

00:09:57.311 --> 00:09:59.922
people faster  and

00:09:59.922 --> 00:10:00.951
basically implement a

00:10:00.951 --> 00:10:01.962
social credit system.

00:10:01.971 --> 00:10:01.991
Yeah.

00:10:02.031 --> 00:10:03.222
It's too sticky for a

00:10:03.222 --> 00:10:04.171
social credit system.

00:10:04.181 --> 00:10:04.201
Yeah,

00:10:04.212 --> 00:10:04.592
absolutely.

00:10:05.131 --> 00:10:05.481
Yeah.

00:10:05.581 --> 00:10:06.951
Okay, so I pulled

00:10:06.951 --> 00:10:07.741
this out of the

00:10:07.851 --> 00:10:08.771
presentation, but

00:10:08.781 --> 00:10:09.572
one of the things I

00:10:09.581 --> 00:10:10.402
showed in the second

00:10:10.402 --> 00:10:12.621
quarter was Secretary

00:10:12.632 --> 00:10:14.411
Bessent's  bragging

00:10:14.412 --> 00:10:15.292
about the fact that

00:10:15.292 --> 00:10:18.711
they had  seized a

00:10:18.711 --> 00:10:19.711
billion dollars of

00:10:19.711 --> 00:10:20.581
Iranian wallets.

00:10:20.822 --> 00:10:22.122
The US drove their

00:10:22.122 --> 00:10:23.271
currency down against

00:10:23.272 --> 00:10:24.861
the dollar, 94%-

00:10:24.982 --> 00:10:25.322
Yeah

00:10:25.371 --> 00:10:26.151
before they went

00:10:26.151 --> 00:10:27.452
to war, and then

00:10:27.501 --> 00:10:28.091
when they went

00:10:28.092 --> 00:10:30.441
to the war  they

00:10:30.441 --> 00:10:31.701
proceeded to then

00:10:34.281 --> 00:10:35.441
immediately seize.

00:10:35.621 --> 00:10:36.401
So a lot of people

00:10:36.401 --> 00:10:37.151
in Iran went to

00:10:37.171 --> 00:10:38.731
crypto, and then

00:10:38.732 --> 00:10:40.141
so Bessent seized

00:10:40.202 --> 00:10:41.142
a billion dollars

00:10:41.142 --> 00:10:42.862
of wallets, and it

00:10:42.871 --> 00:10:43.851
wasn't clear from the

00:10:43.851 --> 00:10:44.911
description how it

00:10:44.921 --> 00:10:46.661
fit into the legal

00:10:46.671 --> 00:10:47.841
process associated

00:10:47.842 --> 00:10:48.651
with sanctions.

00:10:48.991 --> 00:10:49.821
They just took them.

00:10:49.982 --> 00:10:50.572
Yes.

00:10:51.031 --> 00:10:52.781
And  I said it in

00:10:52.781 --> 00:10:53.521
the second quarter

00:10:53.522 --> 00:10:54.531
wrap-up  that's a

00:10:54.531 --> 00:10:55.931
remarkable marketing

00:10:55.931 --> 00:10:57.251
technique when

00:10:57.251 --> 00:10:58.331
you're coming out and

00:10:58.331 --> 00:10:59.252
planning on marketing

00:10:59.261 --> 00:11:00.681
$4 trillion of stable

00:11:00.681 --> 00:11:01.661
coins globally.

00:11:03.291 --> 00:11:05.001
We've frozen Iranian

00:11:05.011 --> 00:11:05.582
bank accounts.

00:11:05.601 --> 00:11:05.901
After

00:11:05.901 --> 00:11:06.691
they, after they

00:11:06.691 --> 00:11:07.241
started getting

00:11:07.241 --> 00:11:08.161
bombed by Iran.

00:11:08.261 --> 00:11:08.981
Yes, but it was

00:11:08.982 --> 00:11:09.771
a big, it was a

00:11:09.781 --> 00:11:11.251
big strategic-

00:11:11.281 --> 00:11:11.821
Big mistake

00:11:11.871 --> 00:11:12.401
…  failure-

00:11:12.491 --> 00:11:12.911
Yeah … on, on

00:11:12.911 --> 00:11:13.391
the financial side.

00:11:13.392 --> 00:11:13.622
Big,

00:11:13.952 --> 00:11:14.512
and you jumped

00:11:14.512 --> 00:11:14.951
right in.

00:11:15.011 --> 00:11:15.821
And    we

00:11:15.821 --> 00:11:16.661
jumped right in.

00:11:16.831 --> 00:11:18.281
And   they've been

00:11:18.282 --> 00:11:19.381
very good partners.

00:11:19.791 --> 00:11:21.392
We  I believe that

00:11:21.392 --> 00:11:22.451
we have seized about

00:11:22.452 --> 00:11:23.132
a billion dollars

00:11:23.132 --> 00:11:23.711
of their crypto.

00:11:25.141 --> 00:11:25.862
And, you know-

00:11:25.872 --> 00:11:26.531
Just outright

00:11:26.531 --> 00:11:26.962
seize them

00:11:27.021 --> 00:11:28.312
ju- just outright

00:11:28.411 --> 00:11:29.452
grab the wallets.

00:11:29.572 --> 00:11:31.401
Some of the… Some

00:11:31.401 --> 00:11:32.052
of them may be,

00:11:32.062 --> 00:11:32.982
like, typing in right

00:11:32.982 --> 00:11:34.342
now and reali- They

00:11:34.342 --> 00:11:35.072
might not realize

00:11:35.072 --> 00:11:35.591
that their wallet

00:11:35.612 --> 00:11:36.432
had been grabbed.

00:11:36.512 --> 00:11:38.191
And  we are working

00:11:38.192 --> 00:11:39.132
with our allies all

00:11:39.132 --> 00:11:41.281
over Europe to grab

00:11:41.842 --> 00:11:43.232
villas and houses

00:11:43.232 --> 00:11:44.111
and properties.

00:11:44.411 --> 00:11:45.462
And  this is money

00:11:45.462 --> 00:11:46.182
that's stolen from

00:11:46.182 --> 00:11:46.982
the Iranian people.

00:11:47.971 --> 00:11:48.722
The simplest- Yeah

00:11:48.731 --> 00:11:49.511
… person sitting at

00:11:49.512 --> 00:11:50.012
home, if you were

00:11:50.012 --> 00:11:50.781
to show them that

00:11:50.791 --> 00:11:51.982
video and have them

00:11:52.391 --> 00:11:52.901
know they have a

00:11:52.932 --> 00:11:53.911
crypto wallet, would

00:11:53.911 --> 00:11:54.791
just ask the basic

00:11:54.801 --> 00:11:55.531
question, "Why can't

00:11:55.531 --> 00:11:56.332
they do that to me?"

00:11:57.071 --> 00:11:57.572
They can.

00:11:57.762 --> 00:11:58.872
And they can,  and

00:11:58.872 --> 00:11:59.591
so that's the answer,

00:11:59.591 --> 00:11:59.711
yeah.

00:11:59.712 --> 00:11:59.981
They've been

00:11:59.982 --> 00:12:00.382
d- They've

00:12:00.392 --> 00:12:00.981
been doing it.

00:12:00.991 --> 00:12:01.572
That's how they've

00:12:01.572 --> 00:12:02.401
been building

00:12:02.401 --> 00:12:03.482
their Bitcoin.

00:12:03.541 --> 00:12:03.881
Yeah.

00:12:04.731 --> 00:12:05.341
And it's very

00:12:05.341 --> 00:12:05.771
interesting.

00:12:05.771 --> 00:12:06.172
I don't know if

00:12:06.172 --> 00:12:06.692
you know this

00:12:06.692 --> 00:12:07.421
little factoid.

00:12:07.451 --> 00:12:08.691
The Bitcoin strategic

00:12:08.692 --> 00:12:10.231
reserve held by the

00:12:10.231 --> 00:12:11.402
US government uses

00:12:11.402 --> 00:12:12.441
the same custodian

00:12:12.442 --> 00:12:13.621
as the BlackRock ETF.

00:12:14.422 --> 00:12:14.912
Okay.

00:12:15.131 --> 00:12:15.512
Do I- But wasn't

00:12:15.591 --> 00:12:16.601
that reserve done

00:12:16.602 --> 00:12:18.022
by  confiscation?

00:12:19.031 --> 00:12:19.112
Yeah.

00:12:19.262 --> 00:12:20.111
On Coinbase or

00:12:20.111 --> 00:12:20.571
whatever, and they-

00:12:20.571 --> 00:12:21.341
Yeah … they co-

00:12:21.521 --> 00:12:22.441
they just created it.

00:12:22.551 --> 00:12:23.092
It's the way they

00:12:23.092 --> 00:12:23.961
created the Exchange

00:12:23.961 --> 00:12:24.571
Stabilization

00:12:24.571 --> 00:12:25.191
Fund, by cr-

00:12:25.731 --> 00:12:26.111
Confiscating

00:12:26.111 --> 00:12:26.712
people's gold.

00:12:27.602 --> 00:12:28.712
So I'll bet you a

00:12:28.712 --> 00:12:30.411
dollar that they're

00:12:30.411 --> 00:12:31.352
leasing that Bitcoin

00:12:31.801 --> 00:12:33.192
to  BlackRock

00:12:33.192 --> 00:12:34.042
for the ETF.

00:12:34.762 --> 00:12:35.201
Yeah, I wouldn't

00:12:35.201 --> 00:12:35.712
be surprised.

00:12:36.881 --> 00:12:38.941
So Rambus Chartology

00:12:38.991 --> 00:12:40.332
is very interesting

00:12:40.361 --> 00:12:41.251
this quarter.

00:12:41.341 --> 00:12:43.121
And  I just have

00:12:43.121 --> 00:12:43.922
to say, it's up

00:12:43.941 --> 00:12:45.011
on the website

00:12:45.011 --> 00:12:47.091
for the second

00:12:47.091 --> 00:12:47.961
quarter wrap-up.

00:12:48.462 --> 00:12:49.441
And Rambus is

00:12:49.441 --> 00:12:50.351
always fascinating.

00:12:50.371 --> 00:12:50.971
People say to

00:12:50.971 --> 00:12:52.931
me, " I'm not a

00:12:52.932 --> 00:12:54.112
technical analyst.

00:12:54.112 --> 00:12:54.922
Why should I read

00:12:54.922 --> 00:12:55.621
these charts?" And

00:12:55.621 --> 00:12:56.781
I say, "Because you

00:12:56.781 --> 00:12:58.011
can see all the price

00:12:58.011 --> 00:12:58.981
and volume action

00:12:58.981 --> 00:13:00.072
over a long period

00:13:00.072 --> 00:13:01.382
of time-  in one

00:13:01.382 --> 00:13:02.381
little snapshot."

00:13:02.871 --> 00:13:04.062
So  if you wanna

00:13:04.062 --> 00:13:04.721
understand what the

00:13:04.721 --> 00:13:05.932
history of this asset

00:13:05.932 --> 00:13:07.161
has been, it's a

00:13:07.161 --> 00:13:08.051
great way to see it.

00:13:08.251 --> 00:13:08.521
Yeah.

00:13:08.981 --> 00:13:09.331
Yeah.

00:13:09.431 --> 00:13:10.791
And  but I also

00:13:10.791 --> 00:13:12.121
love his commentary.

00:13:12.121 --> 00:13:12.741
And one of the

00:13:12.741 --> 00:13:14.001
things he says is,

00:13:14.271 --> 00:13:15.491
it's so interesting,

00:13:16.061 --> 00:13:16.771
and talking

00:13:16.781 --> 00:13:17.491
about integrating

00:13:17.491 --> 00:13:17.931
everything.

00:13:18.221 --> 00:13:19.341
It, he says, "The

00:13:19.341 --> 00:13:21.221
dollar, gold, and

00:13:21.221 --> 00:13:22.751
the stock market are

00:13:22.781 --> 00:13:24.051
all together at an

00:13:24.051 --> 00:13:25.122
inflection point,

00:13:25.172 --> 00:13:26.661
and we have no idea

00:13:26.661 --> 00:13:27.401
how this is gonna

00:13:27.511 --> 00:13:28.901
break." "We have

00:13:28.901 --> 00:13:29.931
no idea how this is

00:13:29.931 --> 00:13:30.991
gonna break, and so

00:13:30.991 --> 00:13:31.961
it is a time that

00:13:31.962 --> 00:13:32.981
calls for patience,

00:13:32.981 --> 00:13:34.151
which is hard to do."

00:13:34.471 --> 00:13:35.271
Yes.

00:13:35.331 --> 00:13:35.682
And that's-

00:13:35.721 --> 00:13:36.611
Yeah … the amazing

00:13:36.611 --> 00:13:38.171
thing for, for

00:13:38.171 --> 00:13:38.691
somebody with his

00:13:38.691 --> 00:13:39.631
long experience to

00:13:39.631 --> 00:13:40.341
acknowledge, and he

00:13:40.352 --> 00:13:41.171
does acknowledge all

00:13:41.171 --> 00:13:42.031
the time, reality.

00:13:42.042 --> 00:13:42.391
He's re-

00:13:42.391 --> 00:13:43.331
acknowledging reality

00:13:43.331 --> 00:13:43.981
from his perspective.

00:13:45.112 --> 00:13:47.614
But it really- Can

00:13:47.614 --> 00:13:48.484
go, it could go a

00:13:48.484 --> 00:13:48.994
lot of different

00:13:48.994 --> 00:13:49.494
directions

00:13:49.494 --> 00:13:49.924
here, I think.

00:13:49.974 --> 00:13:50.424
Yes.

00:13:50.904 --> 00:13:51.994
So  I don't know if

00:13:51.994 --> 00:13:52.714
you remember this.

00:13:52.984 --> 00:13:53.614
Do you remember

00:13:53.614 --> 00:13:54.784
why  he calls

00:13:54.794 --> 00:13:56.989
Rambus Churchology

00:13:56.989 --> 00:13:57.134
Rambus?

00:13:57.134 --> 00:13:58.013
I believe it's 'cause

00:13:58.013 --> 00:13:59.374
he sold Rambus stock

00:13:59.374 --> 00:14:00.463
to have a big gain,

00:14:00.484 --> 00:14:01.614
and    he called

00:14:01.614 --> 00:14:02.804
it right and made

00:14:02.804 --> 00:14:03.374
enough to build a

00:14:03.374 --> 00:14:03.944
house or something

00:14:03.944 --> 00:14:04.513
to that effect.

00:14:04.814 --> 00:14:05.343
Yeah, so what

00:14:05.354 --> 00:14:07.213
happened was  he…

00:14:07.263 --> 00:14:08.024
And his wife was

00:14:08.024 --> 00:14:08.543
part of this.

00:14:08.544 --> 00:14:09.993
She was like, "Okay,

00:14:10.243 --> 00:14:11.383
th- this is a bubble.

00:14:11.403 --> 00:14:13.324
Get   get out." So

00:14:13.324 --> 00:14:14.484
he sold literally

00:14:14.484 --> 00:14:15.164
the day of the

00:14:15.164 --> 00:14:16.023
top, I think.

00:14:16.063 --> 00:14:16.443
Wow.

00:14:16.913 --> 00:14:18.543
And  made quite

00:14:18.544 --> 00:14:19.303
a fortune 'cause

00:14:19.633 --> 00:14:20.113
it had run up

00:14:20.124 --> 00:14:20.944
tremendously.

00:14:20.964 --> 00:14:21.384
Yes.

00:14:21.894 --> 00:14:24.894
And then  he- his…

00:14:25.013 --> 00:14:25.823
They decided to

00:14:25.824 --> 00:14:26.593
build a new house.

00:14:26.593 --> 00:14:27.174
They bought two

00:14:27.174 --> 00:14:28.383
new cars, no debt.

00:14:28.984 --> 00:14:30.384
And got  I think it

00:14:30.384 --> 00:14:32.264
was like a  I forget

00:14:32.264 --> 00:14:33.253
if it was Budweiser

00:14:33.263 --> 00:14:33.853
or what it was,

00:14:33.874 --> 00:14:35.034
but a case of beer.

00:14:35.074 --> 00:14:35.414
Yeah.

00:14:35.503 --> 00:14:36.483
And then they sat

00:14:36.493 --> 00:14:36.934
and watched…

00:14:36.973 --> 00:14:37.444
They burned

00:14:37.453 --> 00:14:38.094
their house down.

00:14:38.104 --> 00:14:38.284
Yeah.

00:14:39.613 --> 00:14:40.173
So they could

00:14:40.173 --> 00:14:40.644
clear the line.

00:14:41.183 --> 00:14:42.383
I  I did it the hard

00:14:42.383 --> 00:14:43.693
way with  bringing a

00:14:43.694 --> 00:14:44.583
team in and pulling

00:14:44.583 --> 00:14:45.424
it down rather than

00:14:45.424 --> 00:14:46.064
just burning it

00:14:46.064 --> 00:14:46.573
down- Yeah … 'cause

00:14:46.573 --> 00:14:48.063
you,  but he, they

00:14:48.063 --> 00:14:48.833
were way out in the

00:14:48.833 --> 00:14:49.493
country, so they

00:14:49.493 --> 00:14:50.283
just burned it down.

00:14:50.694 --> 00:14:51.364
So he saved

00:14:51.364 --> 00:14:52.274
himself $6,000.

00:14:52.274 --> 00:14:54.228
It cost me $6,000

00:14:54.228 --> 00:14:54.763
to- Yeah

00:14:54.783 --> 00:14:55.323
…  take it down-

00:14:55.333 --> 00:14:55.613
Love that … and

00:14:55.613 --> 00:14:56.333
save the doors.

00:14:57.223 --> 00:14:59.493
Anyway  but  so he

00:14:59.493 --> 00:15:00.273
had a great time in

00:15:00.293 --> 00:15:01.394
the dot-com bubble.

00:15:01.433 --> 00:15:03.874
And  but  it's,

00:15:04.454 --> 00:15:05.283
Later on we're gonna

00:15:05.283 --> 00:15:06.104
run a little video

00:15:06.104 --> 00:15:07.474
of  Jeremy Grantham

00:15:07.493 --> 00:15:08.363
talking with Steve

00:15:08.383 --> 00:15:09.383
Bartlett of Diary of

00:15:09.383 --> 00:15:10.743
a CEO, and he points

00:15:10.753 --> 00:15:12.113
he reminds everybody

00:15:12.503 --> 00:15:14.183
that Amazon, in the

00:15:14.183 --> 00:15:17.023
bust-  went down 94%.

00:15:17.344 --> 00:15:17.964
Yeah.

00:15:17.973 --> 00:15:19.433
But- A lot of stocks

00:15:19.433 --> 00:15:20.774
went down 94%, but…

00:15:20.774 --> 00:15:21.913
And just to be clear,

00:15:21.914 --> 00:15:22.533
in that discussion,

00:15:22.533 --> 00:15:23.263
Rambus was the

00:15:23.263 --> 00:15:24.303
name of the stock.

00:15:26.124 --> 00:15:26.574
Sorry.

00:15:26.783 --> 00:15:27.213
Yes.

00:15:27.223 --> 00:15:27.544
The name.

00:15:27.624 --> 00:15:28.484
So it was Rambus

00:15:28.484 --> 00:15:29.343
Technology where he

00:15:29.353 --> 00:15:30.163
had this big gain.

00:15:30.444 --> 00:15:31.174
Okay, so let's

00:15:31.174 --> 00:15:32.233
just quick look.

00:15:32.243 --> 00:15:32.963
We're on market

00:15:32.973 --> 00:15:33.583
valuations.

00:15:33.643 --> 00:15:34.103
Let's look at

00:15:34.113 --> 00:15:34.834
interest rates.

00:15:35.763 --> 00:15:37.103
Interest rates are

00:15:38.473 --> 00:15:39.563
the cost of capital

00:15:39.563 --> 00:15:40.903
is rising, so we're

00:15:40.903 --> 00:15:41.713
taking a look at

00:15:42.573 --> 00:15:43.693
this shows you where

00:15:43.694 --> 00:15:45.223
we've been since

00:15:45.223 --> 00:15:46.763
the pandemic and, or

00:15:46.763 --> 00:15:47.833
through the pandemic.

00:15:47.833 --> 00:15:49.443
And you can see

00:15:49.453 --> 00:15:50.423
throughout the Trump

00:15:50.423 --> 00:15:51.333
administration, we're

00:15:51.333 --> 00:15:52.223
talking about a high

00:15:52.223 --> 00:15:53.333
cost of capital here.

00:15:53.353 --> 00:15:54.213
This is the 10-year

00:15:54.213 --> 00:15:54.843
Treasury yield.

00:15:54.843 --> 00:15:54.873
And

00:15:54.874 --> 00:15:55.634
I would, there I

00:15:55.634 --> 00:15:56.504
just think about

00:15:56.814 --> 00:15:58.353
your, think about a

00:15:58.543 --> 00:15:59.563
c- home credit card

00:15:59.573 --> 00:16:00.393
where the balance

00:16:00.394 --> 00:16:01.233
is ever-growing

00:16:01.234 --> 00:16:01.613
'cause you don't

00:16:01.613 --> 00:16:02.183
have enough money

00:16:02.183 --> 00:16:03.133
to pay your bills,

00:16:03.553 --> 00:16:04.644
and the rate keeps

00:16:04.644 --> 00:16:05.473
creeping up on it.

00:16:06.204 --> 00:16:06.933
And the interest

00:16:06.933 --> 00:16:07.904
keeps creeping up.

00:16:08.303 --> 00:16:10.243
And in this they have

00:16:11.034 --> 00:16:12.033
multiple levers they

00:16:12.034 --> 00:16:12.794
can pull and push

00:16:12.794 --> 00:16:14.033
to try to keep the

00:16:14.034 --> 00:16:14.793
lid on the yield.

00:16:15.383 --> 00:16:16.333
But  it's, the

00:16:16.333 --> 00:16:17.073
trend is clear

00:16:17.073 --> 00:16:17.474
there, I think.

00:16:18.073 --> 00:16:18.553
One of the

00:16:18.553 --> 00:16:19.443
interesting things

00:16:19.443 --> 00:16:20.803
is the Japanese

00:16:20.803 --> 00:16:21.804
carry trade is

00:16:21.874 --> 00:16:22.864
essentially over.

00:16:23.013 --> 00:16:23.603
You, hedge- Yeah

00:16:23.683 --> 00:16:24.543
… funds can't go borrow

00:16:24.543 --> 00:16:25.943
at 0% in Japan.

00:16:26.454 --> 00:16:27.623
And Japan is rising,

00:16:27.624 --> 00:16:28.343
too, with it.

00:16:28.573 --> 00:16:28.914
And that's

00:16:28.924 --> 00:16:29.693
problematic after

00:16:29.693 --> 00:16:30.243
so many years of

00:16:30.243 --> 00:16:31.593
0% rates in Japan.

00:16:33.094 --> 00:16:33.804
And that was

00:16:33.804 --> 00:16:34.394
a great way to

00:16:34.394 --> 00:16:35.454
bubble the economy.

00:16:35.474 --> 00:16:35.834
Yeah.

00:16:37.654 --> 00:16:38.304
And that door

00:16:38.304 --> 00:16:39.674
is getting shut.

00:16:39.684 --> 00:16:40.474
So let's look

00:16:40.474 --> 00:16:41.414
at the 30-year.

00:16:41.844 --> 00:16:42.994
And this one is

00:16:43.003 --> 00:16:44.264
what's scary because

00:16:44.284 --> 00:16:45.504
look  we're at

00:16:45.504 --> 00:16:46.814
an all-time high-

00:16:47.824 --> 00:16:50.414
For the  since

00:16:50.414 --> 00:16:51.934
the pandemic's or

00:16:51.953 --> 00:16:52.703
since the going

00:16:52.703 --> 00:16:53.533
direct reset.

00:16:53.634 --> 00:16:53.874
Yeah.

00:16:53.884 --> 00:16:54.594
This is the going

00:16:54.594 --> 00:16:56.904
direct reset  period.

00:16:57.943 --> 00:16:59.593
And  if you're

00:16:59.623 --> 00:17:01.504
trying to fight a

00:17:01.513 --> 00:17:04.583
war  and your expense

00:17:04.583 --> 00:17:05.503
is your military

00:17:05.764 --> 00:17:07.023
So  they're now

00:17:07.243 --> 00:17:07.953
voting through

00:17:07.953 --> 00:17:09.073
the NDAA-

00:17:09.413 --> 00:17:09.623
Yeah

00:17:09.634 --> 00:17:11.354
…  with a f- a 50%

00:17:11.384 --> 00:17:12.784
increase from last

00:17:12.784 --> 00:17:13.714
year off a base

00:17:13.714 --> 00:17:14.753
that was already a

00:17:14.753 --> 00:17:15.884
10% increase from

00:17:15.884 --> 00:17:16.653
the year before.

00:17:17.053 --> 00:17:18.153
As that goes up, it's

00:17:18.163 --> 00:17:19.483
har-  they … The

00:17:19.493 --> 00:17:20.113
government right

00:17:20.113 --> 00:17:20.943
now is rolling the

00:17:20.943 --> 00:17:21.903
debt on a short-term

00:17:21.904 --> 00:17:23.833
basis, and the higher

00:17:23.834 --> 00:17:24.904
this goes, it shuts

00:17:24.904 --> 00:17:26.143
off the possibility

00:17:26.363 --> 00:17:27.393
that they can extend

00:17:28.043 --> 00:17:29.293
the term  of their

00:17:29.293 --> 00:17:31.283
debt borrowings into

00:17:31.283 --> 00:17:32.503
the long term, which

00:17:32.503 --> 00:17:33.123
is problematic.

00:17:34.203 --> 00:17:34.733
It's interesting.

00:17:34.733 --> 00:17:35.314
It puts you in a

00:17:35.314 --> 00:17:35.943
position where the

00:17:35.953 --> 00:17:37.153
bankers have absolute

00:17:37.164 --> 00:17:37.863
tight control

00:17:37.863 --> 00:17:38.453
of everything.

00:17:38.484 --> 00:17:38.754
Yeah.

00:17:40.234 --> 00:17:41.033
Okay, so I wanted

00:17:41.033 --> 00:17:41.844
just to look at

00:17:41.844 --> 00:17:43.133
the FinViz Futures

00:17:43.154 --> 00:17:43.684
performance

00:17:43.684 --> 00:17:44.453
here to date.

00:17:45.234 --> 00:17:47.584
And    so we keep

00:17:47.584 --> 00:17:49.184
hearing that the CPI

00:17:49.184 --> 00:17:50.704
is now  went up to 4%

00:17:51.393 --> 00:17:52.543
but is falling back.

00:17:53.863 --> 00:17:54.653
If you look at the

00:17:54.663 --> 00:17:55.744
spike that's hitting

00:17:55.744 --> 00:17:56.843
small business,

00:17:57.404 --> 00:17:58.924
this is really ugly.

00:17:59.183 --> 00:17:59.523
Yeah.

00:18:00.103 --> 00:18:02.063
So  I ran a video

00:18:02.063 --> 00:18:02.854
in the f- second

00:18:02.854 --> 00:18:04.474
quarter wrap-up about

00:18:04.474 --> 00:18:06.573
how  this is how big

00:18:06.733 --> 00:18:07.933
businesses scarf up

00:18:07.933 --> 00:18:08.723
market share from

00:18:08.724 --> 00:18:09.513
little businesses.

00:18:09.514 --> 00:18:10.254
You run a spike

00:18:10.254 --> 00:18:11.793
like this, and the

00:18:11.793 --> 00:18:13.034
next thing  you wipe

00:18:13.034 --> 00:18:13.974
out a lot of small

00:18:13.974 --> 00:18:14.763
farmers and a lot

00:18:14.764 --> 00:18:15.663
of small business.

00:18:15.724 --> 00:18:15.944
Yeah.

00:18:16.974 --> 00:18:17.793
Yeah, and that's

00:18:17.894 --> 00:18:18.563
truly what

00:18:18.563 --> 00:18:19.204
we're seeing

00:18:19.404 --> 00:18:20.593
We've not hit  the

00:18:20.593 --> 00:18:21.454
winter yet in the

00:18:21.454 --> 00:18:22.343
Northern Hemisphere,

00:18:22.343 --> 00:18:23.154
so we'll see.

00:18:23.454 --> 00:18:23.944
And everything

00:18:23.944 --> 00:18:24.904
is on such a lag.

00:18:24.914 --> 00:18:25.474
It's like watching

00:18:25.474 --> 00:18:26.073
a slow motion

00:18:26.093 --> 00:18:26.653
train wreck.

00:18:27.073 --> 00:18:27.363
But-

00:18:27.954 --> 00:18:29.073
Eventually, if it

00:18:29.073 --> 00:18:30.234
continues  it will

00:18:30.244 --> 00:18:31.263
come to bite, and

00:18:31.264 --> 00:18:31.984
it will come to bite

00:18:31.984 --> 00:18:34.164
on people when they

00:18:34.164 --> 00:18:34.673
don't need it to

00:18:35.134 --> 00:18:35.813
have that effect.

00:18:37.073 --> 00:18:37.813
I think this is

00:18:37.813 --> 00:18:38.604
one of the reasons

00:18:38.604 --> 00:18:39.894
the anger …  I'm

00:18:39.894 --> 00:18:40.954
seeing a much higher

00:18:40.954 --> 00:18:41.934
level of anger.

00:18:42.063 --> 00:18:42.313
Yeah.

00:18:43.413 --> 00:18:44.244
So I wanted to

00:18:44.244 --> 00:18:44.993
take a look.

00:18:45.283 --> 00:18:46.274
This is another way

00:18:46.274 --> 00:18:47.533
to look at inflation.

00:18:47.543 --> 00:18:48.913
So future shows you

00:18:48.913 --> 00:18:50.023
the short term, but

00:18:50.533 --> 00:18:51.954
this is a chart of

00:18:51.974 --> 00:18:53.763
the blue is S&P and

00:18:53.764 --> 00:18:55.414
gold is at the top.

00:18:55.994 --> 00:18:57.053
And then the long

00:18:57.063 --> 00:18:57.803
bonds that are

00:18:57.803 --> 00:18:59.493
subsidizing the S&P

00:19:00.893 --> 00:19:01.323
Yeah

00:19:01.474 --> 00:19:02.203
are the green at the

00:19:02.204 --> 00:19:04.304
bottom, and  it's the

00:19:04.304 --> 00:19:06.013
20-year Treasury ETF.

00:19:07.084 --> 00:19:07.914
But this gives

00:19:07.914 --> 00:19:08.653
you a sense of

00:19:08.654 --> 00:19:10.003
how bad  the real

00:19:10.003 --> 00:19:11.173
inflation has been.

00:19:11.603 --> 00:19:11.913
Yeah.

00:19:12.143 --> 00:19:12.733
Absolutely.

00:19:13.724 --> 00:19:16.013
And also   it's also,

00:19:16.073 --> 00:19:17.063
part of it is that

00:19:17.173 --> 00:19:18.934
Asia, arising Asia

00:19:18.954 --> 00:19:20.593
has been trying to

00:19:20.593 --> 00:19:22.263
diversify into gold.

00:19:22.393 --> 00:19:22.833
So we're

00:19:22.843 --> 00:19:23.894
rebalancing gold

00:19:23.894 --> 00:19:25.084
supplies globally.

00:19:25.433 --> 00:19:26.274
That's part of what's

00:19:26.274 --> 00:19:27.173
run the price up, but

00:19:27.173 --> 00:19:28.753
I would dare say the

00:19:28.753 --> 00:19:29.783
faith in the system

00:19:29.783 --> 00:19:30.764
has deteriorated

00:19:30.773 --> 00:19:31.393
mightily.

00:19:31.974 --> 00:19:32.363
It has.

00:19:32.363 --> 00:19:32.903
That's the main

00:19:32.933 --> 00:19:33.604
picture of this.

00:19:33.604 --> 00:19:34.843
I remember  in 2000,

00:19:34.843 --> 00:19:35.453
I was a currency

00:19:35.453 --> 00:19:36.903
trader, and  the

00:19:36.913 --> 00:19:38.043
general thought

00:19:38.043 --> 00:19:39.184
there, people were

00:19:39.184 --> 00:19:40.603
shorting gold at

00:19:40.603 --> 00:19:42.014
$300 and below.

00:19:42.933 --> 00:19:43.693
It's crazy to think

00:19:43.703 --> 00:19:45.004
about, that's 25,

00:19:45.043 --> 00:19:46.884
26 years ago, how,

00:19:47.073 --> 00:19:47.833
what, how, what

00:19:47.834 --> 00:19:50.624
the giant change of

00:19:50.624 --> 00:19:52.873
sentiment  and market

00:19:52.874 --> 00:19:53.574
conditions has been.

00:19:55.133 --> 00:19:55.933
So let's turn

00:19:55.933 --> 00:19:56.783
to equities.

00:19:58.503 --> 00:20:00.303
The Shiller P/E is

00:20:01.904 --> 00:20:02.644
trying to remember

00:20:02.644 --> 00:20:03.554
the definition.

00:20:03.584 --> 00:20:04.343
Instead of just

00:20:04.343 --> 00:20:05.293
doing the current

00:20:05.303 --> 00:20:06.333
P/E, you're doing

00:20:06.334 --> 00:20:07.433
a trailing P/E.

00:20:08.523 --> 00:20:09.623
But it's one way of

00:20:09.654 --> 00:20:11.123
measuring the sort of

00:20:11.154 --> 00:20:13.723
relative  valuations

00:20:13.724 --> 00:20:14.393
in the market.

00:20:14.613 --> 00:20:14.863
Yes.

00:20:15.183 --> 00:20:16.043
And as you can

00:20:16.043 --> 00:20:17.133
see, the, over

00:20:17.133 --> 00:20:18.033
on the left, that

00:20:18.063 --> 00:20:19.833
big bump is the

00:20:20.856 --> 00:20:21.846
What year is that?

00:20:22.106 --> 00:20:23.106
Probably 2008.

00:20:25.236 --> 00:20:25.536
Is it?

00:20:25.586 --> 00:20:27.276
Oh, too bad the, the

00:20:27.286 --> 00:20:29.336
years got cut off  in

00:20:29.336 --> 00:20:31.376
the… No, I think

00:20:31.376 --> 00:20:32.446
it's further back.

00:20:33.056 --> 00:20:34.255
Anyway  but what

00:20:34.735 --> 00:20:36.106
is we're, we

00:20:36.106 --> 00:20:37.206
are approaching

00:20:38.055 --> 00:20:39.245
all-time highs here.

00:20:39.725 --> 00:20:40.115
Yeah.

00:20:40.535 --> 00:20:41.026
We're not there

00:20:41.026 --> 00:20:41.885
yet, but we're

00:20:41.885 --> 00:20:42.825
approaching, and

00:20:43.135 --> 00:20:43.775
you're starting

00:20:43.776 --> 00:20:44.345
to hear more and

00:20:44.346 --> 00:20:45.576
more people say

00:20:46.526 --> 00:20:47.695
dot com levels.

00:20:47.705 --> 00:20:49.395
So take a look,

00:20:49.426 --> 00:20:50.005
let's look at

00:20:50.006 --> 00:20:50.815
the next chart.

00:20:50.836 --> 00:20:52.236
If    there's ano-

00:20:52.356 --> 00:20:53.595
another indicator

00:20:53.905 --> 00:20:54.665
that people use,

00:20:54.666 --> 00:20:55.805
which is Buffett,

00:20:55.815 --> 00:20:57.215
who's comparing

00:20:57.215 --> 00:20:57.945
the market cap

00:20:57.945 --> 00:20:59.015
to the GDP.

00:20:59.756 --> 00:21:01.285
And this is '90

00:21:01.305 --> 00:21:03.165
to 2026, and

00:21:03.215 --> 00:21:03.875
on the Buffett

00:21:03.875 --> 00:21:04.656
indicator, we're at

00:21:04.656 --> 00:21:05.676
an all-time high.

00:21:05.725 --> 00:21:06.275
In other words,

00:21:06.645 --> 00:21:07.626
corporate profits

00:21:07.626 --> 00:21:09.135
are squeezing much

00:21:09.145 --> 00:21:11.115
more of the GDP.

00:21:11.965 --> 00:21:13.055
They're growing at

00:21:13.055 --> 00:21:13.785
the expense of the

00:21:13.785 --> 00:21:15.336
GDP is what, the way

00:21:15.336 --> 00:21:16.255
I would describe it.

00:21:16.335 --> 00:21:16.685
Yeah.

00:21:18.096 --> 00:21:19.216
Okay, next chart.

00:21:19.705 --> 00:21:20.875
Part of what's

00:21:20.875 --> 00:21:21.716
driving the market

00:21:21.716 --> 00:21:22.575
up is the mar-

00:21:22.655 --> 00:21:23.725
margin levels.

00:21:26.145 --> 00:21:27.135
As you can see, the

00:21:27.136 --> 00:21:29.475
US margin is also

00:21:29.505 --> 00:21:30.575
at an all-time high.

00:21:30.835 --> 00:21:31.725
I, when I saw this

00:21:31.725 --> 00:21:32.305
chart, I asked the

00:21:32.305 --> 00:21:33.445
question  can we just

00:21:33.456 --> 00:21:35.465
convert straight into

00:21:35.725 --> 00:21:38.125
20X margin on stable

00:21:38.125 --> 00:21:38.925
coin or whatever

00:21:38.926 --> 00:21:39.785
it's gonna be?

00:21:40.035 --> 00:21:41.005
From this point,

00:21:41.005 --> 00:21:41.565
you're already

00:21:41.566 --> 00:21:43.725
so elevated, and

00:21:44.155 --> 00:21:45.135
is it possible to

00:21:45.136 --> 00:21:46.216
just send it to

00:21:46.216 --> 00:21:46.735
the moon, or are

00:21:46.735 --> 00:21:47.555
we gonna have some

00:21:48.285 --> 00:21:49.326
intercession in there

00:21:49.326 --> 00:21:50.985
between this   and

00:21:50.985 --> 00:21:51.685
the future stages?

00:21:52.615 --> 00:21:53.505
So there's so many

00:21:53.505 --> 00:21:54.536
people, and good

00:21:54.536 --> 00:21:55.535
people, saying

00:21:56.255 --> 00:21:57.695
All-time highs

00:21:58.816 --> 00:21:59.605
looks just like

00:21:59.605 --> 00:22:00.955
the dot com bubble.

00:22:00.956 --> 00:22:01.715
It's dependent

00:22:01.715 --> 00:22:02.665
on leverage.

00:22:02.685 --> 00:22:03.596
This can't go on.

00:22:03.596 --> 00:22:04.236
It's time for the

00:22:04.236 --> 00:22:05.066
bubble to burst."

00:22:06.035 --> 00:22:07.365
And so I wanna talk

00:22:07.375 --> 00:22:08.175
about that, but

00:22:08.175 --> 00:22:08.975
first I wanna show

00:22:08.975 --> 00:22:10.095
you a great clip

00:22:10.096 --> 00:22:12.015
from Jeremy Grantham

00:22:12.026 --> 00:22:12.785
interviewing with

00:22:12.785 --> 00:22:13.685
Steve Bartlett

00:22:14.295 --> 00:22:15.205
talking about this

00:22:15.235 --> 00:22:16.485
issue of bubbles.

00:22:16.886 --> 00:22:17.396
One of the things

00:22:17.396 --> 00:22:17.735
you're famous

00:22:17.735 --> 00:22:18.455
for talking about

00:22:18.515 --> 00:22:20.125
is this idea of

00:22:20.206 --> 00:22:21.115
bubbles, and we're

00:22:21.115 --> 00:22:21.825
living in a moment

00:22:21.825 --> 00:22:22.455
where everybody's

00:22:22.456 --> 00:22:23.076
talking about the

00:22:23.076 --> 00:22:24.335
subject of artificial

00:22:24.335 --> 00:22:25.445
intelligence, and

00:22:25.445 --> 00:22:25.925
everyone's getting

00:22:25.925 --> 00:22:26.945
very excited by it.

00:22:27.085 --> 00:22:27.525
Some people are

00:22:27.526 --> 00:22:28.225
getting very

00:22:28.225 --> 00:22:29.105
pessimistic about

00:22:29.105 --> 00:22:29.655
the impact it'll

00:22:29.655 --> 00:22:30.626
have on society.

00:22:31.176 --> 00:22:31.836
I wanted to start

00:22:31.866 --> 00:22:32.615
there because it's

00:22:32.616 --> 00:22:33.256
a, it's an area

00:22:33.256 --> 00:22:34.185
where there is rife

00:22:34.245 --> 00:22:35.175
optimism on one

00:22:35.185 --> 00:22:36.555
side of things  but

00:22:36.555 --> 00:22:37.055
there's also a lot

00:22:37.055 --> 00:22:37.845
of money plowing

00:22:37.845 --> 00:22:38.856
into the market which

00:22:38.856 --> 00:22:40.335
is  I guess in your

00:22:40.335 --> 00:22:41.495
view, making things

00:22:41.795 --> 00:22:42.936
prone to collapse?

00:22:44.149 --> 00:22:44.659
What's your view

00:22:44.659 --> 00:22:45.129
on artificial

00:22:45.129 --> 00:22:45.629
intelligence?

00:22:45.830 --> 00:22:46.449
You said you're good

00:22:46.449 --> 00:22:47.260
at understanding what

00:22:47.260 --> 00:22:47.909
people are missing.

00:22:47.909 --> 00:22:48.370
What is it that

00:22:48.370 --> 00:22:49.100
people are missing?

00:22:49.620 --> 00:22:50.010
First of all,

00:22:50.010 --> 00:22:50.629
let me say, I

00:22:50.639 --> 00:22:51.399
think artificial

00:22:51.709 --> 00:22:52.469
intelligence is

00:22:53.139 --> 00:22:53.800
right up there

00:22:53.800 --> 00:22:54.659
with the railroads.

00:22:54.659 --> 00:22:55.520
It's one of the

00:22:56.260 --> 00:22:57.979
defining great ideas

00:22:58.070 --> 00:22:59.620
of the last couple

00:22:59.620 --> 00:23:00.339
of hundred years.

00:23:00.999 --> 00:23:01.679
It's going to change

00:23:01.679 --> 00:23:03.020
everything, and

00:23:03.179 --> 00:23:03.969
that is critical

00:23:04.469 --> 00:23:04.949
if you mean to

00:23:04.949 --> 00:23:05.559
have a bubble.

00:23:05.860 --> 00:23:06.649
People think that

00:23:06.689 --> 00:23:08.149
a bubble is  mainly

00:23:08.169 --> 00:23:08.719
because it's a

00:23:08.719 --> 00:23:09.699
scam, and nothing

00:23:09.699 --> 00:23:10.389
could be further

00:23:10.499 --> 00:23:11.129
from the truth.

00:23:11.649 --> 00:23:12.449
The great bubbles

00:23:12.459 --> 00:23:13.879
always occur around

00:23:13.879 --> 00:23:14.540
the very most

00:23:14.540 --> 00:23:15.579
important ideas.

00:23:16.100 --> 00:23:17.119
So the railroads,

00:23:17.150 --> 00:23:17.729
everyone could

00:23:17.729 --> 00:23:18.829
see that it would

00:23:18.829 --> 00:23:19.590
change the world,

00:23:20.150 --> 00:23:21.049
and everyone wanted

00:23:21.049 --> 00:23:21.719
to put their money

00:23:21.720 --> 00:23:22.789
in, and everybody

00:23:22.790 --> 00:23:23.629
put their money in.

00:23:23.979 --> 00:23:25.240
They over-invested,

00:23:25.499 --> 00:23:25.959
and even though

00:23:25.970 --> 00:23:26.869
the railroads were

00:23:26.869 --> 00:23:27.970
a spectacularly

00:23:27.989 --> 00:23:30.330
powerful idea  the

00:23:30.330 --> 00:23:32.479
railroads  collapsed

00:23:32.479 --> 00:23:33.189
as stocks, and

00:23:33.189 --> 00:23:33.939
everybody lost

00:23:33.939 --> 00:23:34.659
a ton of dough.

00:23:35.299 --> 00:23:35.730
The same with

00:23:35.739 --> 00:23:36.320
the internet.

00:23:36.909 --> 00:23:37.479
And then out of

00:23:37.479 --> 00:23:38.429
the wreckage, the

00:23:38.429 --> 00:23:39.879
railroads changed

00:23:39.889 --> 00:23:41.209
the world  and

00:23:41.209 --> 00:23:41.919
the internet

00:23:42.040 --> 00:23:42.929
changed the world.

00:23:43.520 --> 00:23:44.099
What we have to

00:23:44.099 --> 00:23:46.896
remember is that In

00:23:46.896 --> 00:23:48.506
'99, Amazon went up

00:23:48.506 --> 00:23:49.586
six or seven times.

00:23:49.886 --> 00:23:50.926
In the crash, in

00:23:50.926 --> 00:23:51.626
the tech bubble,

00:23:51.666 --> 00:23:52.856
it went down 92%.

00:23:54.226 --> 00:23:54.856
As I like to

00:23:54.856 --> 00:23:55.546
say, check it.

00:23:55.586 --> 00:23:56.016
It's such a

00:23:56.026 --> 00:23:56.656
remarkably

00:23:56.656 --> 00:23:57.276
large number.

00:23:57.506 --> 00:23:58.186
And then out of

00:23:58.186 --> 00:23:58.835
the wreckage,

00:23:59.136 --> 00:24:00.115
it inherited the

00:24:00.115 --> 00:24:00.915
retail world.

00:24:01.546 --> 00:24:02.926
And   that's

00:24:02.926 --> 00:24:03.686
how it works.

00:24:03.786 --> 00:24:04.375
The greater the

00:24:04.375 --> 00:24:05.635
idea, the more

00:24:05.645 --> 00:24:06.646
obvious the idea,

00:24:07.116 --> 00:24:07.935
the more money goes

00:24:07.936 --> 00:24:09.006
in, and the bigger

00:24:09.006 --> 00:24:09.955
the bubble, and the

00:24:09.955 --> 00:24:10.605
bigger the bust.

00:24:11.135 --> 00:24:11.906
So here's what's

00:24:11.906 --> 00:24:12.645
interesting.

00:24:14.026 --> 00:24:15.195
Because if you look

00:24:15.196 --> 00:24:16.205
at the money that's

00:24:16.205 --> 00:24:18.385
going,  If you look

00:24:18.385 --> 00:24:19.286
at the money that's

00:24:19.286 --> 00:24:21.805
going back  into

00:24:21.806 --> 00:24:24.076
this bubble, we've

00:24:24.435 --> 00:24:25.086
and I'll get to

00:24:25.086 --> 00:24:25.845
this when we get to

00:24:25.845 --> 00:24:27.235
current trends, we've

00:24:27.415 --> 00:24:28.665
published an article

00:24:28.705 --> 00:24:30.335
on the taxpayer

00:24:30.336 --> 00:24:31.016
money rolling

00:24:31.016 --> 00:24:32.405
into data centers.

00:24:33.455 --> 00:24:34.556
Inspired by Kevin

00:24:34.556 --> 00:24:35.395
O'Leary's interview

00:24:35.836 --> 00:24:37.626
with  Tucker Carlson

00:24:37.626 --> 00:24:38.025
when he said,

00:24:38.025 --> 00:24:38.825
"Oh, all this is

00:24:38.836 --> 00:24:39.625
private money."

00:24:39.665 --> 00:24:39.925
Yeah.

00:24:40.135 --> 00:24:40.866
So I wanted to

00:24:40.866 --> 00:24:41.585
prove that's a

00:24:41.586 --> 00:24:42.445
bunch of hooey.

00:24:42.795 --> 00:24:44.006
So Taylor, we

00:24:44.006 --> 00:24:44.855
sponsored Taylor

00:24:44.856 --> 00:24:46.875
doing  tracking

00:24:46.875 --> 00:24:48.205
the, the taxpayer

00:24:48.215 --> 00:24:49.016
money rolling in.

00:24:50.125 --> 00:24:51.105
Now we want her to

00:24:51.105 --> 00:24:52.325
write one on private,

00:24:52.346 --> 00:24:53.166
and we had Corey

00:24:53.166 --> 00:24:54.656
Lynn do extensive

00:24:54.656 --> 00:24:55.485
research on where

00:24:55.486 --> 00:24:56.085
all the private

00:24:56.086 --> 00:24:56.865
money is going.

00:24:56.876 --> 00:24:57.216
Okay.

00:24:57.935 --> 00:24:58.596
Guess what?

00:24:59.005 --> 00:25:00.065
The taxpayers,

00:25:00.075 --> 00:25:00.865
through the CHIP

00:25:00.865 --> 00:25:02.155
Act and through the

00:25:02.155 --> 00:25:03.276
big beautiful bill,

00:25:03.315 --> 00:25:04.185
are pouring money

00:25:04.185 --> 00:25:04.946
in at the corporate

00:25:04.946 --> 00:25:06.036
level, which is then

00:25:06.036 --> 00:25:07.365
going in, and they're

00:25:07.365 --> 00:25:08.365
saying it's private.

00:25:09.045 --> 00:25:09.875
That's interesting,

00:25:09.876 --> 00:25:10.615
'cause it's the same

00:25:10.615 --> 00:25:11.396
time where you have

00:25:11.396 --> 00:25:13.025
a budget deficit.

00:25:13.086 --> 00:25:13.985
So you're not paying

00:25:13.986 --> 00:25:14.696
all your bills

00:25:14.705 --> 00:25:15.675
from a government

00:25:15.685 --> 00:25:16.075
standpoint.

00:25:16.086 --> 00:25:16.546
You have money

00:25:16.546 --> 00:25:16.906
coming in.

00:25:16.906 --> 00:25:17.535
You're spending more

00:25:17.535 --> 00:25:18.326
than that, but at

00:25:18.326 --> 00:25:19.005
the same time, then

00:25:19.005 --> 00:25:19.875
you're routing some

00:25:19.876 --> 00:25:21.235
of that money so that

00:25:21.236 --> 00:25:22.265
it appears private.

00:25:23.685 --> 00:25:25.145
And    it's gonna

00:25:25.155 --> 00:25:26.035
be very interesting

00:25:26.035 --> 00:25:26.835
when we finally get

00:25:26.836 --> 00:25:27.595
this all wrapped up,

00:25:27.605 --> 00:25:28.495
because what it shows

00:25:28.495 --> 00:25:30.886
is there is a tsunami

00:25:30.886 --> 00:25:31.916
of money pouring in

00:25:31.916 --> 00:25:32.756
to build the control

00:25:32.756 --> 00:25:33.526
grid, including the

00:25:33.526 --> 00:25:35.105
data centers, but

00:25:35.126 --> 00:25:36.875
it is all engineered

00:25:36.885 --> 00:25:38.035
by the central banks

00:25:38.086 --> 00:25:39.105
and the government.

00:25:39.155 --> 00:25:40.005
It's fiscal and

00:25:40.016 --> 00:25:41.145
monetary stimulus

00:25:41.145 --> 00:25:41.945
again and again.

00:25:42.205 --> 00:25:42.875
Yeah, I just…

00:25:42.895 --> 00:25:43.705
My question there

00:25:43.705 --> 00:25:44.655
is, is it enough?

00:25:45.355 --> 00:25:46.116
To me, I don't

00:25:46.116 --> 00:25:46.955
have any problem

00:25:46.975 --> 00:25:48.155
speculating about

00:25:48.376 --> 00:25:49.225
other sor- There's

00:25:49.245 --> 00:25:49.935
plenty of sources

00:25:49.935 --> 00:25:50.735
of money, right?

00:25:50.925 --> 00:25:51.595
There's the Exchange

00:25:51.595 --> 00:25:52.755
Stabilization Fund,

00:25:52.766 --> 00:25:53.425
there's the 21

00:25:53.455 --> 00:25:54.436
trillion missing.

00:25:54.705 --> 00:25:55.386
So you could have

00:25:55.386 --> 00:25:56.145
money coming in

00:25:56.145 --> 00:25:56.945
from other sources

00:25:56.956 --> 00:25:57.595
that you might not

00:25:57.596 --> 00:25:58.346
be able to prove.

00:25:58.965 --> 00:25:59.955
But just with the

00:25:59.956 --> 00:26:00.475
amount that you

00:26:00.475 --> 00:26:01.265
can prove is a

00:26:01.266 --> 00:26:02.965
significant effect.

00:26:03.486 --> 00:26:04.645
It's unbelievable.

00:26:04.695 --> 00:26:04.845
Yeah.

00:26:04.885 --> 00:26:05.515
I… It's just

00:26:05.516 --> 00:26:06.435
an unbelievable

00:26:06.435 --> 00:26:07.135
amount of money.

00:26:07.975 --> 00:26:08.776
But it's the kind of

00:26:08.776 --> 00:26:09.996
money that creates

00:26:10.405 --> 00:26:11.246
the momentum that

00:26:11.246 --> 00:26:11.985
gets the crowd

00:26:11.995 --> 00:26:12.786
all moving in

00:26:12.786 --> 00:26:13.486
that direction,

00:26:13.486 --> 00:26:14.276
'cause it's such a,

00:26:14.405 --> 00:26:15.306
it's such a wave.

00:26:15.745 --> 00:26:17.135
So one of Jeremy's q-

00:26:17.885 --> 00:26:18.855
Grantham's quotes is,

00:26:18.876 --> 00:26:19.876
"Profit margins…"

00:26:20.605 --> 00:26:21.385
I bring this up

00:26:21.385 --> 00:26:22.805
because in the '90s

00:26:23.785 --> 00:26:25.035
I used to watch him,

00:26:25.596 --> 00:26:27.745
and  and in the early

00:26:27.755 --> 00:26:29.056
2000s coming into the

00:26:29.056 --> 00:26:30.355
financial crisis, and

00:26:31.246 --> 00:26:32.175
I thought his work

00:26:32.176 --> 00:26:33.236
was fantastic, but we

00:26:33.236 --> 00:26:35.598
always disagreed And

00:26:35.598 --> 00:26:36.828
finally, he published

00:26:36.828 --> 00:26:37.718
something saying,

00:26:37.998 --> 00:26:39.068
" I underestimated

00:26:39.078 --> 00:26:39.958
the ability of the

00:26:39.958 --> 00:26:40.928
American political

00:26:40.928 --> 00:26:42.648
class to subsidize

00:26:42.648 --> 00:26:43.318
companies."

00:26:44.308 --> 00:26:44.518
Yeah.

00:26:45.417 --> 00:26:46.297
So he writes,

00:26:46.537 --> 00:26:47.618
"Profit margins are

00:26:47.618 --> 00:26:48.577
probably the most

00:26:48.577 --> 00:26:49.737
mean-reverting series

00:26:49.738 --> 00:26:50.488
in finance, and if

00:26:50.488 --> 00:26:51.998
proch- profit margins

00:26:51.998 --> 00:26:53.227
do not mean-revert,

00:26:53.698 --> 00:26:54.687
then something has

00:26:54.688 --> 00:26:55.898
gone badly wrong

00:26:55.898 --> 00:26:56.998
with capitalism. If

00:26:56.998 --> 00:26:58.078
high profits do not

00:26:58.078 --> 00:26:59.107
attract compositi-

00:26:59.368 --> 00:27:00.597
competition, there

00:27:00.598 --> 00:27:01.317
is something wrong

00:27:01.317 --> 00:27:02.168
with the system, and

00:27:02.168 --> 00:27:03.347
it is not functioning

00:27:03.348 --> 00:27:04.028
properly."

00:27:04.337 --> 00:27:04.677
Yeah.

00:27:04.967 --> 00:27:05.347
Okay.

00:27:05.688 --> 00:27:06.667
So what we've got

00:27:06.667 --> 00:27:07.528
with the tsunami of

00:27:07.528 --> 00:27:08.528
money is we've got

00:27:08.528 --> 00:27:09.488
a tsunami of money

00:27:09.488 --> 00:27:10.588
creating massive

00:27:10.618 --> 00:27:12.397
mo- monopolies that

00:27:12.397 --> 00:27:13.457
are not economic,

00:27:13.458 --> 00:27:14.177
but they certainly

00:27:14.177 --> 00:27:15.178
look economic.

00:27:16.607 --> 00:27:17.928
Anyway, another quote

00:27:17.928 --> 00:27:20.008
he used is, "Remember

00:27:20.008 --> 00:27:20.707
that…" He talks

00:27:20.708 --> 00:27:21.427
about the fact that

00:27:21.427 --> 00:27:22.598
there have been 26

00:27:22.618 --> 00:27:23.947
big bubbles-  since

00:27:24.098 --> 00:27:24.697
the beginning of

00:27:24.697 --> 00:27:25.538
the stock market.

00:27:25.778 --> 00:27:26.068
Yeah.

00:27:26.627 --> 00:27:27.287
And then he says

00:27:27.287 --> 00:27:28.087
this, "Remember

00:27:28.087 --> 00:27:29.097
that history always

00:27:29.098 --> 00:27:29.997
repeats itself.

00:27:30.447 --> 00:27:31.548
Every great bubble

00:27:31.548 --> 00:27:32.298
in history is

00:27:32.307 --> 00:27:33.367
broken. There are

00:27:33.368 --> 00:27:34.257
no exceptions."

00:27:34.327 --> 00:27:34.647
Yeah.

00:27:35.997 --> 00:27:36.678
I don't begin

00:27:36.678 --> 00:27:37.467
to pretend to

00:27:37.467 --> 00:27:38.078
know when this

00:27:38.078 --> 00:27:39.337
bubble will break.

00:27:40.827 --> 00:27:41.697
But what I do

00:27:41.697 --> 00:27:42.907
believe, Tim, is

00:27:42.917 --> 00:27:44.177
if you look at the

00:27:44.178 --> 00:27:45.267
things that you and I

00:27:45.278 --> 00:27:46.117
have been discussing,

00:27:46.117 --> 00:27:46.578
and we've been

00:27:46.578 --> 00:27:47.208
discussing in the

00:27:47.208 --> 00:27:48.378
legislative briefing,

00:27:49.057 --> 00:27:49.907
between stable

00:27:49.907 --> 00:27:51.698
coins and tokenizing

00:27:51.708 --> 00:27:53.958
stocks and bonds and

00:27:53.967 --> 00:27:55.208
offering tremendous

00:27:55.208 --> 00:27:56.207
leverage and freedom

00:27:56.208 --> 00:27:57.677
from regulation and

00:27:57.678 --> 00:27:59.257
trading markets 24/7,

00:27:59.257 --> 00:28:00.357
if you look at what

00:28:01.388 --> 00:28:02.508
the establishment

00:28:02.508 --> 00:28:03.158
is planning to

00:28:03.158 --> 00:28:03.827
do with crypto

00:28:03.837 --> 00:28:05.927
rails, it looks to

00:28:05.928 --> 00:28:06.687
me like they are

00:28:06.687 --> 00:28:08.257
amassing the biggest

00:28:08.257 --> 00:28:09.578
bubble machine yet

00:28:11.272 --> 00:28:12.482
Yeah, and I guess

00:28:12.482 --> 00:28:13.122
the thing that goes

00:28:13.122 --> 00:28:14.052
along with that to

00:28:14.052 --> 00:28:15.252
me  is the question

00:28:15.252 --> 00:28:16.462
of what's the rush?

00:28:16.782 --> 00:28:17.372
There seems to w-

00:28:17.532 --> 00:28:18.672
be a tremendous

00:28:18.672 --> 00:28:20.432
rush to implement

00:28:20.432 --> 00:28:21.261
the control grid

00:28:21.262 --> 00:28:22.492
and all its facets.

00:28:23.241 --> 00:28:24.012
And it's almost

00:28:24.031 --> 00:28:25.392
like they're aware

00:28:25.662 --> 00:28:26.622
every bubble has

00:28:26.622 --> 00:28:27.822
crashed in the past,

00:28:28.301 --> 00:28:29.251
and we've gotta get

00:28:29.282 --> 00:28:30.322
this stuff in place

00:28:30.381 --> 00:28:31.722
before the crash.

00:28:32.032 --> 00:28:32.952
I don't know, because

00:28:33.202 --> 00:28:35.182
it's… I don't know

00:28:35.182 --> 00:28:35.842
if you can really

00:28:35.842 --> 00:28:37.002
just stack a bubble

00:28:37.002 --> 00:28:37.861
on top of a bubble or

00:28:37.862 --> 00:28:38.841
just go into oblivion

00:28:38.842 --> 00:28:39.401
and we- we're out

00:28:39.401 --> 00:28:39.981
of capitalism.

00:28:40.471 --> 00:28:40.891
I don't know.

00:28:40.901 --> 00:28:41.431
There's a lot

00:28:42.662 --> 00:28:43.262
it's interesting

00:28:43.272 --> 00:28:43.951
to contemplate.

00:28:44.752 --> 00:28:46.131
So I never believed

00:28:46.162 --> 00:28:46.872
they could keep the

00:28:46.872 --> 00:28:47.891
mortgage bubble going

00:28:47.891 --> 00:28:48.942
as long as they did.

00:28:49.641 --> 00:28:50.621
And  I really

00:28:50.621 --> 00:28:51.142
believe one of the

00:28:51.151 --> 00:28:51.961
reasons they could

00:28:51.961 --> 00:28:52.962
was neuro warfare.

00:28:54.121 --> 00:28:55.631
I really think  it

00:28:55.662 --> 00:28:57.071
re-  it required

00:28:57.081 --> 00:28:57.962
lots of different

00:28:57.962 --> 00:28:58.391
techniques.

00:28:58.401 --> 00:28:59.591
So let's look at

00:28:59.592 --> 00:29:00.301
the next slide.

00:29:01.721 --> 00:29:02.672
Okay, so this is

00:29:02.682 --> 00:29:03.831
Marc Andreessen two

00:29:03.831 --> 00:29:06.901
weeks ago, and  he

00:29:06.901 --> 00:29:09.581
published a graph

00:29:10.561 --> 00:29:13.171
of  of the US stock

00:29:13.171 --> 00:29:14.111
market showing that

00:29:14.112 --> 00:29:15.251
it's approximately

00:29:15.292 --> 00:29:16.861
65% of the total

00:29:16.862 --> 00:29:17.752
global market.

00:29:18.641 --> 00:29:19.721
And  the US has

00:29:19.722 --> 00:29:20.772
been outperforming

00:29:20.781 --> 00:29:21.611
the other markets

00:29:24.311 --> 00:29:26.282
And then he says, "We

00:29:26.282 --> 00:29:28.012
will see this at 90%

00:29:29.211 --> 00:29:30.471
barring catastrophic

00:29:30.472 --> 00:29:31.541
policy choices."

00:29:32.811 --> 00:29:33.651
And where is it now?

00:29:33.652 --> 00:29:34.151
That's… It's

00:29:34.161 --> 00:29:35.091
on  70% or so?

00:29:35.801 --> 00:29:36.791
It's at 68%.

00:29:36.841 --> 00:29:37.901
68%. A little bit

00:29:37.902 --> 00:29:39.242
above 70% was the

00:29:39.242 --> 00:29:40.001
all-time high.

00:29:40.091 --> 00:29:41.392
Or no, I think

00:29:41.392 --> 00:29:42.552
68% was the

00:29:42.552 --> 00:29:43.182
all-time high.

00:29:43.461 --> 00:29:43.811
Yeah.

00:29:44.711 --> 00:29:45.742
So what he's saying

00:29:45.742 --> 00:29:47.911
is the US stock

00:29:47.911 --> 00:29:49.782
market…  So think

00:29:49.792 --> 00:29:50.801
of this as a channel

00:29:50.801 --> 00:29:53.178
war  the US stock

00:29:53.178 --> 00:29:54.187
market is a channel,

00:29:54.187 --> 00:29:54.697
and they're trying

00:29:54.697 --> 00:29:56.498
to get  the income

00:29:56.498 --> 00:29:57.398
going in through

00:29:57.398 --> 00:29:58.028
their channel.

00:29:58.338 --> 00:29:59.158
I was just talking to

00:29:59.158 --> 00:30:00.187
an investment advisor

00:30:00.187 --> 00:30:01.118
the other day, and

00:30:01.118 --> 00:30:01.708
we were talking about

00:30:01.708 --> 00:30:02.858
the Russell 1000.

00:30:03.558 --> 00:30:04.977
And I asked the

00:30:04.978 --> 00:30:05.728
question, "What's

00:30:05.728 --> 00:30:06.798
the percentage of

00:30:06.798 --> 00:30:07.598
foreign earnings

00:30:07.627 --> 00:30:08.268
going through the

00:30:08.268 --> 00:30:09.248
Russell 1000?"

00:30:09.738 --> 00:30:10.447
it's completely

00:30:10.447 --> 00:30:11.627
domestic companies.

00:30:12.058 --> 00:30:12.977
And we looked it

00:30:12.978 --> 00:30:13.637
up, and it turned

00:30:13.637 --> 00:30:14.898
out to be 38%.

00:30:15.158 --> 00:30:15.558
Okay.

00:30:16.568 --> 00:30:18.218
So that's  US

00:30:18.248 --> 00:30:18.767
companies have

00:30:18.797 --> 00:30:19.837
managed to

00:30:19.877 --> 00:30:20.987
consolidate more and

00:30:20.988 --> 00:30:22.787
more of the market

00:30:22.818 --> 00:30:24.508
abroad into going

00:30:24.517 --> 00:30:25.457
through their stocks.

00:30:25.907 --> 00:30:26.767
So he's not wrong

00:30:26.778 --> 00:30:27.428
when he says the

00:30:27.907 --> 00:30:29.257
global equity market.

00:30:29.688 --> 00:30:30.667
Even if it's just a

00:30:30.668 --> 00:30:32.238
US company  there's

00:30:32.247 --> 00:30:33.068
international flows

00:30:33.068 --> 00:30:34.327
in there, 38%.

00:30:35.297 --> 00:30:36.307
So he's saying

00:30:36.707 --> 00:30:37.727
US-controlled

00:30:37.747 --> 00:30:39.808
companies will

00:30:39.837 --> 00:30:40.987
control 90% of

00:30:40.988 --> 00:30:43.567
the flow going

00:30:43.567 --> 00:30:44.128
through the stock

00:30:44.128 --> 00:30:45.368
market, which is

00:30:45.368 --> 00:30:46.327
an extraordinary

00:30:46.328 --> 00:30:46.918
increase.

00:30:47.787 --> 00:30:49.667
And  the only way

00:30:49.717 --> 00:30:50.687
I can see that

00:30:50.687 --> 00:30:52.267
happening is if

00:30:52.267 --> 00:30:53.397
the plans for

00:30:54.627 --> 00:30:55.747
tokenization and

00:30:55.747 --> 00:30:57.057
stablecoins are

00:30:57.057 --> 00:30:58.267
wildly successful.

00:30:58.578 --> 00:30:58.878
Yeah.

00:30:59.508 --> 00:31:01.088
If they are, then

00:31:01.097 --> 00:31:02.147
basically you're

00:31:02.158 --> 00:31:02.848
gonna get four

00:31:02.848 --> 00:31:04.107
billion people out of

00:31:04.107 --> 00:31:05.108
their local currency

00:31:05.108 --> 00:31:05.678
and out of their

00:31:05.678 --> 00:31:06.818
local investments

00:31:07.287 --> 00:31:08.237
and into the US

00:31:08.237 --> 00:31:10.017
stock market and into

00:31:11.137 --> 00:31:12.417
trading US dollars in

00:31:12.417 --> 00:31:13.167
a way that goes into

00:31:13.167 --> 00:31:14.138
the treasury market.

00:31:14.877 --> 00:31:16.087
I think of the, the

00:31:16.127 --> 00:31:17.097
story you told about

00:31:17.097 --> 00:31:17.987
East Germany with

00:31:18.887 --> 00:31:19.297
with stablecoin.

00:31:19.997 --> 00:31:20.607
Just are they just

00:31:20.607 --> 00:31:21.837
gonna give people

00:31:21.837 --> 00:31:22.927
a financial bonus

00:31:22.927 --> 00:31:23.988
to use stablecoin

00:31:23.988 --> 00:31:24.417
and convert

00:31:24.417 --> 00:31:25.237
everybody overnight?

00:31:27.527 --> 00:31:28.257
So they're trying

00:31:28.258 --> 00:31:29.287
to suck everybody

00:31:29.287 --> 00:31:30.037
globally out of

00:31:30.037 --> 00:31:32.067
what's real into

00:31:32.127 --> 00:31:33.467
financing the empire.

00:31:34.127 --> 00:31:35.557
So basically you're

00:31:35.557 --> 00:31:36.478
talking about getting

00:31:36.478 --> 00:31:37.407
four billion people

00:31:37.427 --> 00:31:38.387
to finance the war

00:31:38.398 --> 00:31:40.727
machine  that's

00:31:40.727 --> 00:31:41.488
coming after them

00:31:41.488 --> 00:31:42.297
more or less.

00:31:42.727 --> 00:31:43.097
Yeah.

00:31:43.627 --> 00:31:44.488
It's remarkable.

00:31:44.597 --> 00:31:47.077
Anyway, so will Marc

00:31:47.077 --> 00:31:47.598
Andreessen be right?

00:31:47.648 --> 00:31:48.277
I don't know.

00:31:48.447 --> 00:31:49.648
One, one question I

00:31:49.648 --> 00:31:50.437
have, maybe f- that

00:31:50.467 --> 00:31:51.017
we'll go through

00:31:51.017 --> 00:31:52.088
the discussion, but

00:31:52.118 --> 00:31:54.047
at a high level is

00:31:54.618 --> 00:31:56.327
w- is the ability

00:31:56.347 --> 00:31:57.387
of the powers that

00:31:57.398 --> 00:31:58.247
be, whoever they

00:31:58.247 --> 00:31:58.997
are, Mr. Global,

00:31:58.997 --> 00:32:00.597
whatever, really able

00:32:01.117 --> 00:32:03.947
to overcome global-

00:32:06.158 --> 00:32:06.928
Dislocation.

00:32:07.018 --> 00:32:07.638
Like the fact that

00:32:07.648 --> 00:32:08.668
the price of oil

00:32:08.718 --> 00:32:10.268
is, does not reflect

00:32:10.278 --> 00:32:10.948
reality to me.

00:32:10.958 --> 00:32:11.938
But there's, so

00:32:11.938 --> 00:32:12.638
there's a lot there

00:32:12.808 --> 00:32:13.478
but ultimately it

00:32:13.478 --> 00:32:14.208
comes down to can

00:32:14.208 --> 00:32:15.568
they keep engineering

00:32:15.788 --> 00:32:16.468
as things get

00:32:16.468 --> 00:32:17.138
further and further

00:32:17.138 --> 00:32:17.858
out of balance

00:32:18.088 --> 00:32:18.848
and be successful?

00:32:19.458 --> 00:32:21.267
So my prediction is

00:32:21.337 --> 00:32:22.587
that in theory, if

00:32:22.588 --> 00:32:23.617
you look at the math,

00:32:24.068 --> 00:32:25.138
they can if they're

00:32:25.138 --> 00:32:26.397
willing to depopulate

00:32:26.398 --> 00:32:27.367
and plunder at

00:32:27.367 --> 00:32:28.067
the right way and

00:32:28.068 --> 00:32:28.858
the right speed.

00:32:28.937 --> 00:32:29.257
Okay.

00:32:29.758 --> 00:32:30.387
You can't…

00:32:30.697 --> 00:32:31.907
You have to-

00:32:32.238 --> 00:32:32.678
Something

00:32:32.678 --> 00:32:33.387
has to give.

00:32:34.037 --> 00:32:35.437
You can't… I- if

00:32:35.437 --> 00:32:36.388
you're gonna continue

00:32:36.388 --> 00:32:37.147
to parasite the

00:32:37.148 --> 00:32:39.237
host and parasite

00:32:39.237 --> 00:32:39.917
in a way that your

00:32:39.917 --> 00:32:40.797
negative returns are

00:32:40.797 --> 00:32:41.777
getting  worse and

00:32:41.777 --> 00:32:43.448
worse-    L- you're

00:32:43.448 --> 00:32:44.168
depending more and

00:32:44.168 --> 00:32:45.178
more on monopoly

00:32:45.178 --> 00:32:46.267
that's not productive

00:32:47.137 --> 00:32:48.227
you've got to plunder

00:32:48.228 --> 00:32:48.748
more and more.

00:32:48.748 --> 00:32:49.087
You've gotta

00:32:49.088 --> 00:32:50.257
eat, you've gotta

00:32:50.277 --> 00:32:51.467
compost the host.

00:32:51.667 --> 00:32:51.997
Yeah.

00:32:52.818 --> 00:32:53.108
All right.

00:32:53.108 --> 00:32:53.587
I could, I guess

00:32:53.908 --> 00:32:54.397
that's one way

00:32:54.397 --> 00:32:55.117
to, to skin the

00:32:55.117 --> 00:32:55.927
cat, so to speak.

00:32:57.957 --> 00:32:59.817
But I thought  now

00:32:59.827 --> 00:33:01.837
right after Marc

00:33:01.837 --> 00:33:01.857
Andreessen tweeted

00:33:01.857 --> 00:33:03.058
this, guess what

00:33:03.068 --> 00:33:04.057
happened to Marc?

00:33:05.558 --> 00:33:06.008
I don't know

00:33:06.468 --> 00:33:07.498
He was invited to

00:33:07.498 --> 00:33:08.418
join one of the

00:33:08.418 --> 00:33:09.998
new advisory task

00:33:09.998 --> 00:33:11.448
forces that Warsh

00:33:11.448 --> 00:33:12.658
is creating- Oh

00:33:12.658 --> 00:33:13.348
at the Fed to

00:33:13.348 --> 00:33:14.178
redo how they

00:33:14.178 --> 00:33:15.308
do the process.

00:33:17.178 --> 00:33:18.708
So it was Mark and

00:33:18.748 --> 00:33:20.108
Mervyn King, who used

00:33:20.108 --> 00:33:21.997
to be the governor of

00:33:21.998 --> 00:33:23.028
the Bank of England.

00:33:23.127 --> 00:33:23.477
Yeah.

00:33:25.428 --> 00:33:27.548
So I said  I

00:33:27.548 --> 00:33:28.308
tweeted that out

00:33:28.308 --> 00:33:29.638
and said, "Okay,

00:33:30.077 --> 00:33:31.337
Warsh goes full-on

00:33:31.338 --> 00:33:32.187
control grid."

00:33:32.987 --> 00:33:33.777
Yeah, because I think

00:33:33.778 --> 00:33:34.367
there's always been

00:33:34.367 --> 00:33:35.437
cooperation between

00:33:35.438 --> 00:33:36.217
central banks around

00:33:36.217 --> 00:33:36.998
the world, but now

00:33:36.998 --> 00:33:38.627
it's  explicitly in

00:33:38.628 --> 00:33:40.337
your face, "We are-

00:33:40.338 --> 00:33:40.658
Right

00:33:40.817 --> 00:33:42.847
cooperating."    a-

00:33:42.847 --> 00:33:43.528
and with people

00:33:43.528 --> 00:33:43.977
that are not

00:33:43.977 --> 00:33:44.668
central bankers,

00:33:44.678 --> 00:33:45.368
like Mark Endries.

00:33:46.987 --> 00:33:47.668
You've got the,

00:33:47.718 --> 00:33:48.588
you've got the tech

00:33:48.597 --> 00:33:49.878
companies, you've

00:33:49.878 --> 00:33:50.987
got the military

00:33:50.987 --> 00:33:51.708
companies, and

00:33:51.708 --> 00:33:52.198
you've got the

00:33:52.198 --> 00:33:53.127
finance companies.

00:33:53.178 --> 00:33:53.408
Yeah.

00:33:54.327 --> 00:33:56.127
And they…  Part

00:33:56.128 --> 00:33:56.937
of the problem is

00:33:56.937 --> 00:33:57.807
the way they settle

00:33:57.807 --> 00:33:58.837
their fights is

00:33:58.838 --> 00:33:59.648
they steal more

00:33:59.648 --> 00:34:00.527
from the rest of us.

00:34:01.417 --> 00:34:01.677
Yeah.

00:34:01.687 --> 00:34:02.928
So that's part of the

00:34:02.928 --> 00:34:04.267
centralizing thing.

00:34:04.417 --> 00:34:05.297
Okay, so let's

00:34:05.297 --> 00:34:05.798
look at some

00:34:05.798 --> 00:34:06.637
current trends.

00:34:07.067 --> 00:34:08.777
Big question is, the

00:34:08.777 --> 00:34:09.797
strategic question

00:34:09.797 --> 00:34:10.887
we asked and another

00:34:10.897 --> 00:34:13.117
big question is  is

00:34:13.137 --> 00:34:14.498
the powers that they

00:34:14.498 --> 00:34:15.727
are pulling together

00:34:15.727 --> 00:34:17.477
to amass a new bubble

00:34:17.867 --> 00:34:18.578
gonna keep this

00:34:18.578 --> 00:34:20.297
bubble going or not?

00:34:20.348 --> 00:34:21.028
Or could you get

00:34:21.028 --> 00:34:21.747
the kind of crash

00:34:21.747 --> 00:34:22.477
you got after the

00:34:22.477 --> 00:34:23.337
dot-com bubble?

00:34:25.117 --> 00:34:26.257
Very big questions,

00:34:26.257 --> 00:34:27.057
but let's go to

00:34:27.067 --> 00:34:27.818
the first slide

00:34:27.818 --> 00:34:28.757
in current trends,

00:34:28.757 --> 00:34:29.287
and the big one,

00:34:29.287 --> 00:34:31.527
of course, is  the

00:34:31.527 --> 00:34:32.587
monopolies have now

00:34:32.588 --> 00:34:33.447
decided that the

00:34:33.447 --> 00:34:35.847
best way to deal in

00:34:35.847 --> 00:34:37.098
this environment is

00:34:37.128 --> 00:34:38.508
with perpetual war.

00:34:39.857 --> 00:34:41.657
And part of that is

00:34:42.317 --> 00:34:43.777
making sure the do-

00:34:44.018 --> 00:34:44.617
if you're gonna get

00:34:44.617 --> 00:34:45.627
the dollar system to

00:34:45.637 --> 00:34:47.507
continue and get 90%

00:34:47.507 --> 00:34:48.417
of everybody coming

00:34:48.417 --> 00:34:49.147
into the dollar

00:34:49.147 --> 00:34:51.667
system, then you need

00:34:51.667 --> 00:34:53.867
a lot of force behind

00:34:53.917 --> 00:34:54.937
what you're up to.

00:34:55.768 --> 00:34:56.667
And you need a lot

00:34:56.667 --> 00:34:57.507
more force than

00:34:57.507 --> 00:34:59.897
you used to as the

00:35:00.287 --> 00:35:01.458
reputation of the

00:35:01.458 --> 00:35:03.897
US and the f- the

00:35:04.177 --> 00:35:05.347
military that backs

00:35:05.367 --> 00:35:07.337
the dollar dominance

00:35:07.558 --> 00:35:09.107
erodes over time

00:35:09.137 --> 00:35:10.468
in, in real time

00:35:10.468 --> 00:35:11.037
out in the open

00:35:11.790 --> 00:35:12.430
Right, and it's

00:35:12.430 --> 00:35:13.160
funny, one of the

00:35:13.160 --> 00:35:14.540
quotes we had for

00:35:16.040 --> 00:35:16.790
the news trends and

00:35:16.790 --> 00:35:17.750
story commentary this

00:35:17.750 --> 00:35:18.380
year was from Mike

00:35:18.380 --> 00:35:19.150
Hudson, and he says,

00:35:19.150 --> 00:35:20.320
"Every, every time

00:35:20.320 --> 00:35:21.110
they do something

00:35:21.110 --> 00:35:21.910
to prove their

00:35:21.920 --> 00:35:22.650
dominance in the

00:35:22.650 --> 00:35:23.840
dollar system, they

00:35:24.340 --> 00:35:25.629
hurt the reputation

00:35:25.639 --> 00:35:26.490
of the US more."

00:35:26.589 --> 00:35:26.859
Yeah.

00:35:27.500 --> 00:35:28.900
Anyway  so let me

00:35:28.900 --> 00:35:29.569
just run through

00:35:29.569 --> 00:35:30.120
some of the things

00:35:30.120 --> 00:35:30.910
we're gonna look at

00:35:30.910 --> 00:35:31.900
under geopolitical

00:35:31.909 --> 00:35:32.309
direction.

00:35:32.310 --> 00:35:32.870
So we're gonna look

00:35:32.870 --> 00:35:33.550
at the dollar, we're

00:35:33.550 --> 00:35:34.459
gonna look at defense

00:35:34.460 --> 00:35:35.270
and control grid

00:35:35.270 --> 00:35:37.080
stocks, talk a little

00:35:37.080 --> 00:35:37.969
bit again about the

00:35:37.970 --> 00:35:39.129
tsunami of money.

00:35:39.370 --> 00:35:40.070
I'm just…

00:35:40.940 --> 00:35:41.599
Every time I

00:35:41.610 --> 00:35:43.750
think  I never…

00:35:43.790 --> 00:35:44.969
I don't underestimate

00:35:44.979 --> 00:35:45.849
the amount of money

00:35:45.860 --> 00:35:46.929
that they can inject

00:35:46.939 --> 00:35:48.149
into the private

00:35:48.150 --> 00:35:48.849
economy and make

00:35:48.849 --> 00:35:49.569
it look like it's

00:35:49.569 --> 00:35:50.790
a real economics.

00:35:51.749 --> 00:35:52.529
I shake my head.

00:35:52.549 --> 00:35:53.499
I also wanna talk

00:35:53.509 --> 00:35:54.469
about open and closed

00:35:54.470 --> 00:35:55.440
AI, 'cause one of

00:35:55.440 --> 00:35:57.149
the things that the

00:35:57.150 --> 00:35:59.150
whole control grid

00:35:59.209 --> 00:36:00.859
effort depends on is

00:36:01.429 --> 00:36:02.650
controlling the AI.

00:36:03.569 --> 00:36:04.459
This is part of

00:36:04.619 --> 00:36:05.749
this big footprint

00:36:05.759 --> 00:36:07.169
digital center.

00:36:07.169 --> 00:36:07.919
Instead of having

00:36:07.929 --> 00:36:09.480
decentralized AI-

00:36:09.810 --> 00:36:10.070
Yes

00:36:10.459 --> 00:36:11.019
…  meantime, you

00:36:11.020 --> 00:36:11.880
got China running

00:36:11.880 --> 00:36:12.399
around the world and

00:36:12.399 --> 00:36:12.969
saying, "No, we're

00:36:12.970 --> 00:36:14.049
gonna do open source

00:36:14.049 --> 00:36:15.159
decentralized." And

00:36:15.159 --> 00:36:17.829
their  their AI is

00:36:17.830 --> 00:36:19.180
far more economic,

00:36:19.180 --> 00:36:19.889
and they're spreading

00:36:19.889 --> 00:36:21.009
open source models.

00:36:21.169 --> 00:36:21.739
So-

00:36:21.970 --> 00:36:22.570
And if you look

00:36:22.570 --> 00:36:23.530
at some analyses,

00:36:23.530 --> 00:36:24.529
they're already

00:36:24.540 --> 00:36:25.579
lead-  they're at the

00:36:25.580 --> 00:36:26.140
turning point where

00:36:26.140 --> 00:36:26.909
they're beating us-

00:36:27.589 --> 00:36:27.939
Right

00:36:28.040 --> 00:36:29.200
by many measures.

00:36:29.999 --> 00:36:30.970
The Kimi just

00:36:30.970 --> 00:36:31.639
came out.

00:36:31.659 --> 00:36:32.799
It's number one.

00:36:33.709 --> 00:36:34.550
It's funny, I tried

00:36:34.550 --> 00:36:35.380
to sign up, and I

00:36:35.380 --> 00:36:36.219
couldn't, because

00:36:37.489 --> 00:36:38.819
they…  I had to

00:36:38.819 --> 00:36:39.749
get on a wait list.

00:36:39.749 --> 00:36:40.069
Yeah.

00:36:40.400 --> 00:36:41.100
It was amazing.

00:36:41.290 --> 00:36:41.520
Yeah.

00:36:41.540 --> 00:36:42.039
And I don't know

00:36:42.040 --> 00:36:42.609
if you know this.

00:36:42.629 --> 00:36:43.249
The founder of

00:36:43.249 --> 00:36:44.410
Kimi had to l- He

00:36:44.449 --> 00:36:45.020
couldn't come to

00:36:45.029 --> 00:36:45.939
the United States

00:36:45.949 --> 00:36:47.179
because of Trump.

00:36:47.179 --> 00:36:47.839
Trump changed

00:36:47.839 --> 00:36:48.390
the rules to

00:36:48.390 --> 00:36:49.509
discourage Chinese.

00:36:50.589 --> 00:36:51.489
So he didn't start

00:36:51.489 --> 00:36:52.279
his company here in

00:36:52.290 --> 00:36:53.019
the United States.

00:36:53.019 --> 00:36:53.500
He had to go

00:36:53.500 --> 00:36:54.269
back to China.

00:36:55.260 --> 00:36:55.610
Yeah.

00:36:56.179 --> 00:36:56.630
It's- Which-

00:36:56.630 --> 00:36:57.139
… it's that whole

00:36:57.139 --> 00:36:57.869
thing with the

00:37:01.839 --> 00:37:02.819
the book by the

00:37:02.819 --> 00:37:04.329
economist, Stephen

00:37:04.330 --> 00:37:04.749
Roach, that you

00:37:04.749 --> 00:37:05.729
had on with the

00:37:06.059 --> 00:37:06.649
unbalance- Oh,

00:37:06.650 --> 00:37:07.279
yeah … and the

00:37:07.279 --> 00:37:07.789
fact that- Yeah

00:37:07.819 --> 00:37:10.119
it's  a  it's

00:37:10.119 --> 00:37:10.869
a dysfunctional

00:37:10.869 --> 00:37:11.869
relationship, and

00:37:12.209 --> 00:37:13.519
how you untangle that

00:37:14.499 --> 00:37:15.759
is not easy in the

00:37:15.769 --> 00:37:16.670
best of terms, and

00:37:16.670 --> 00:37:17.160
it seems like we're

00:37:17.160 --> 00:37:17.929
gonna go the worst

00:37:17.929 --> 00:37:18.669
of terms and gonna do

00:37:18.669 --> 00:37:19.529
the stupidest things.

00:37:20.139 --> 00:37:21.029
Codependence is

00:37:21.029 --> 00:37:21.529
the word I was

00:37:21.529 --> 00:37:21.890
thinking of.

00:37:21.909 --> 00:37:22.189
Yeah.

00:37:22.469 --> 00:37:23.069
We're deeply

00:37:23.069 --> 00:37:23.609
codependent.

00:37:23.620 --> 00:37:24.589
You can't unwind it.

00:37:24.689 --> 00:37:25.039
Yeah.

00:37:25.639 --> 00:37:25.959
Yeah.

00:37:26.389 --> 00:37:26.979
What you can do

00:37:26.980 --> 00:37:27.809
is you can pretend

00:37:27.810 --> 00:37:28.970
to have wars that

00:37:29.029 --> 00:37:29.500
make you- Yeah

00:37:29.500 --> 00:37:30.409
… money, right?

00:37:30.549 --> 00:37:30.899
And

00:37:34.079 --> 00:37:35.649
it's    there's

00:37:35.650 --> 00:37:36.389
a projective

00:37:36.389 --> 00:37:37.730
identification push

00:37:37.749 --> 00:37:38.570
by the Zionists

00:37:38.570 --> 00:37:39.320
to blame China

00:37:39.329 --> 00:37:39.999
for everything.

00:37:40.310 --> 00:37:40.680
Yeah.

00:37:41.179 --> 00:37:41.879
Or Russia.

00:37:42.760 --> 00:37:43.220
Okay.

00:37:43.220 --> 00:37:44.359
Speaking of which,

00:37:44.370 --> 00:37:45.919
Section 219 of the

00:37:45.919 --> 00:37:47.379
NDAA has passed.

00:37:48.400 --> 00:37:49.469
That's very bad news

00:37:49.469 --> 00:37:50.359
because we're talking

00:37:50.359 --> 00:37:51.379
about integrating

00:37:51.389 --> 00:37:52.080
the military-

00:37:52.080 --> 00:37:52.719
It's treason

00:37:52.719 --> 00:37:52.909
IDF.

00:37:52.980 --> 00:37:53.580
It's treason.

00:37:54.010 --> 00:37:54.769
This is treason.

00:37:56.120 --> 00:37:57.010
This is absolute

00:37:57.019 --> 00:37:57.479
treason.

00:37:57.510 --> 00:37:57.730
Yeah.

00:37:58.189 --> 00:37:58.519
And

00:38:00.966 --> 00:38:01.856
I keep hearing the

00:38:01.856 --> 00:38:02.926
song, the line from

00:38:02.926 --> 00:38:03.516
Leonard Cohen's

00:38:03.516 --> 00:38:04.246
song, "Has it come

00:38:04.246 --> 00:38:05.096
to this? Has it come

00:38:05.096 --> 00:38:06.256
to this? It wasn't a

00:38:06.256 --> 00:38:07.316
we- long way down."

00:38:07.656 --> 00:38:07.976
Yeah.

00:38:08.606 --> 00:38:10.106
So here's, this is

00:38:10.106 --> 00:38:11.375
why you care about

00:38:11.376 --> 00:38:12.406
your state and your

00:38:12.406 --> 00:38:13.446
local jurisdiction.

00:38:14.546 --> 00:38:15.496
Cause these guys

00:38:15.535 --> 00:38:16.735
are dangerous.

00:38:16.995 --> 00:38:17.646
It's a battle,

00:38:17.646 --> 00:38:18.026
though, at the

00:38:18.026 --> 00:38:18.645
state level.

00:38:19.145 --> 00:38:19.335
Yep.

00:38:19.336 --> 00:38:20.186
The onslaught is

00:38:20.186 --> 00:38:21.126
not, it's not easy.

00:38:21.126 --> 00:38:21.976
It's overwhelming.

00:38:22.856 --> 00:38:23.925
And now these guys,

00:38:24.426 --> 00:38:25.325
the whole APAC

00:38:25.336 --> 00:38:26.095
crew, are coming

00:38:26.106 --> 00:38:27.006
state by state.

00:38:28.336 --> 00:38:28.926
I don't know if this

00:38:28.926 --> 00:38:29.755
is gonna build out

00:38:29.756 --> 00:38:31.075
into other slides,

00:38:31.075 --> 00:38:31.506
but I would just

00:38:31.555 --> 00:38:32.765
observe  the defense

00:38:32.776 --> 00:38:34.706
stocks, t- to the

00:38:34.706 --> 00:38:36.686
degree that you run

00:38:36.686 --> 00:38:37.935
money through defense

00:38:38.296 --> 00:38:38.996
and that defense

00:38:38.996 --> 00:38:40.155
is classified,

00:38:40.645 --> 00:38:41.376
that you can run

00:38:41.376 --> 00:38:42.635
things even more

00:38:43.065 --> 00:38:43.966
without disclosure,

00:38:44.065 --> 00:38:44.845
even within

00:38:44.855 --> 00:38:45.536
the established

00:38:45.536 --> 00:38:46.145
budget system.

00:38:47.445 --> 00:38:48.055
Here's part of the

00:38:48.055 --> 00:38:49.166
problem, is w- if

00:38:49.166 --> 00:38:49.746
you look at the

00:38:49.746 --> 00:38:50.425
integration of the

00:38:50.425 --> 00:38:51.175
military that's

00:38:51.175 --> 00:38:52.045
contemplated by

00:38:52.065 --> 00:38:52.735
both the House

00:38:52.735 --> 00:38:53.406
and the Senate-

00:38:53.765 --> 00:38:55.005
If the Senate passes-

00:38:55.715 --> 00:38:56.646
They basically

00:38:56.646 --> 00:38:57.665
get to put a straw

00:38:57.666 --> 00:38:58.976
into Treasury

00:38:59.425 --> 00:39:00.055
where there are no

00:39:00.055 --> 00:39:01.195
financial controls.

00:39:01.575 --> 00:39:01.775
Yeah.

00:39:01.775 --> 00:39:02.895
So 21 trillion went

00:39:02.905 --> 00:39:04.455
missing by 2015.

00:39:04.465 --> 00:39:05.256
After that, it went

00:39:05.256 --> 00:39:07.065
dark, and we have

00:39:07.065 --> 00:39:07.875
no idea how much

00:39:07.906 --> 00:39:08.986
money is pouring out.

00:39:10.545 --> 00:39:11.656
So- And th- so   if

00:39:11.686 --> 00:39:12.945
the US defense

00:39:12.955 --> 00:39:14.075
spending is already

00:39:14.345 --> 00:39:14.966
a good chunk

00:39:14.966 --> 00:39:15.695
classified, and then

00:39:15.696 --> 00:39:16.425
you put in Section

00:39:16.425 --> 00:39:18.125
219 and integrate

00:39:18.125 --> 00:39:18.875
it with Israel, how

00:39:18.875 --> 00:39:19.345
much of that are

00:39:19.345 --> 00:39:19.835
they gonna say is

00:39:19.836 --> 00:39:20.775
classified that you

00:39:20.775 --> 00:39:21.566
can't even look at?

00:39:22.586 --> 00:39:22.956
They could

00:39:22.956 --> 00:39:23.575
say all of it.

00:39:23.605 --> 00:39:23.945
Yeah.

00:39:25.294 --> 00:39:26.054
They could say all of

00:39:26.254 --> 00:39:27.004
it, and if you look

00:39:27.004 --> 00:39:27.624
at the amount you

00:39:27.624 --> 00:39:28.874
could pull out before

00:39:29.774 --> 00:39:30.354
the only thing

00:39:30.354 --> 00:39:31.074
that would stop it

00:39:31.084 --> 00:39:31.993
would be a collapse

00:39:31.993 --> 00:39:32.754
of the dollar.

00:39:33.654 --> 00:39:34.044
Yes.

00:39:37.344 --> 00:39:38.064
And of course in

00:39:38.064 --> 00:39:40.013
that scenario  in

00:39:40.013 --> 00:39:41.023
both scenarios you

00:39:41.024 --> 00:39:41.893
can plunder to your

00:39:41.894 --> 00:39:42.683
heart's content

00:39:42.694 --> 00:39:44.104
because-  if you

00:39:44.104 --> 00:39:44.973
look at how they

00:39:44.983 --> 00:39:46.084
will then hook into

00:39:46.084 --> 00:39:47.093
the flock and local

00:39:47.093 --> 00:39:48.403
surveillance systems

00:39:50.003 --> 00:39:50.783
and be able to

00:39:50.783 --> 00:39:52.143
integrate  in with

00:39:52.153 --> 00:39:53.473
ICE and the police.

00:39:53.624 --> 00:39:53.854
Yeah.

00:39:53.854 --> 00:39:54.533
Can you imagine,

00:39:55.003 --> 00:39:55.163
Yeah

00:39:55.433 --> 00:39:56.523
…  all the troops that

00:39:56.524 --> 00:39:58.393
did Gaza training ICE

00:39:58.393 --> 00:39:59.423
on how to do American

00:39:59.424 --> 00:40:00.084
neighborhoods?

00:40:00.404 --> 00:40:00.774
Yeah.

00:40:01.953 --> 00:40:02.883
Okay, so let's look

00:40:02.884 --> 00:40:03.733
at some charts.

00:40:04.044 --> 00:40:05.173
Okay, so the US

00:40:05.173 --> 00:40:06.193
dollar index is

00:40:06.193 --> 00:40:07.683
holding reasonably

00:40:07.683 --> 00:40:09.593
strong, and if you

00:40:09.603 --> 00:40:10.594
look at the market

00:40:10.594 --> 00:40:13.433
share numbers  we

00:40:13.433 --> 00:40:14.413
had these up, we had

00:40:14.413 --> 00:40:15.343
a lot of different

00:40:15.343 --> 00:40:16.713
stats in the second

00:40:16.713 --> 00:40:17.483
quarter wrap-up,

00:40:17.493 --> 00:40:19.043
but  if you look

00:40:19.044 --> 00:40:21.433
at the  composition

00:40:21.433 --> 00:40:22.493
of foreign reserves

00:40:22.533 --> 00:40:24.183
or  so here what

00:40:24.183 --> 00:40:25.303
you can see is

00:40:25.333 --> 00:40:27.393
the…  The market

00:40:27.393 --> 00:40:28.263
share has eroded.

00:40:28.544 --> 00:40:29.133
It's a very

00:40:29.134 --> 00:40:30.383
slow decline.

00:40:30.393 --> 00:40:31.333
We talked about the,

00:40:31.453 --> 00:40:32.613
the scenarios at the

00:40:32.614 --> 00:40:33.433
beginning of the year

00:40:33.433 --> 00:40:34.393
of a slow decline.

00:40:34.404 --> 00:40:34.504
And

00:40:34.783 --> 00:40:35.143
you're looking

00:40:35.143 --> 00:40:35.994
at the share of

00:40:35.994 --> 00:40:36.833
US dollars on the

00:40:36.834 --> 00:40:37.663
bottom section there?

00:40:38.203 --> 00:40:39.933
Yeah, so  this is

00:40:39.963 --> 00:40:40.973
ends in Q4 2025.

00:40:43.133 --> 00:40:43.704
But if you look at

00:40:43.723 --> 00:40:45.354
the 2026 numbers,

00:40:45.404 --> 00:40:46.784
again, very slow.

00:40:47.073 --> 00:40:47.373
Yeah.

00:40:47.944 --> 00:40:50.034
This is trade, and

00:40:50.034 --> 00:40:51.403
still  now this

00:40:51.404 --> 00:40:52.083
is coming from the

00:40:52.084 --> 00:40:53.034
Swiss system, so it

00:40:53.034 --> 00:40:53.743
doesn't include the

00:40:53.743 --> 00:40:55.703
Chinese system  it's

00:40:55.703 --> 00:40:56.844
still a monster.

00:40:57.154 --> 00:40:57.564
Yeah.

00:40:57.883 --> 00:40:58.983
The dollar system

00:40:58.993 --> 00:40:59.913
still controls, and

00:40:59.913 --> 00:41:01.223
remember, no matter

00:41:01.223 --> 00:41:02.193
where your dollars

00:41:02.194 --> 00:41:02.893
are in the world,

00:41:02.893 --> 00:41:03.483
no matter what

00:41:03.493 --> 00:41:05.633
bank  essentially

00:41:05.633 --> 00:41:06.483
as a matter of law

00:41:06.483 --> 00:41:07.074
they're deemed to

00:41:07.074 --> 00:41:08.463
be in the United

00:41:08.463 --> 00:41:09.274
States and subject

00:41:09.313 --> 00:41:10.373
to US jurisdiction.

00:41:11.364 --> 00:41:11.864
So there's

00:41:11.864 --> 00:41:13.114
tremendous power

00:41:13.154 --> 00:41:14.993
that  comes with

00:41:14.993 --> 00:41:15.854
still controlling.

00:41:15.864 --> 00:41:16.873
The dollar continues

00:41:16.873 --> 00:41:17.594
to be dangerous

00:41:17.594 --> 00:41:18.213
and dominant.

00:41:18.614 --> 00:41:19.283
And I think the,

00:41:19.283 --> 00:41:20.103
the ideal case for

00:41:20.103 --> 00:41:20.793
the dollar is to

00:41:20.803 --> 00:41:21.703
be in the r- in a

00:41:21.703 --> 00:41:22.853
range where it is,

00:41:23.084 --> 00:41:23.853
where  it's like

00:41:23.853 --> 00:41:24.593
the just right.

00:41:24.593 --> 00:41:25.903
It's not too strong,

00:41:26.283 --> 00:41:27.444
but it's not weak.

00:41:28.073 --> 00:41:28.584
Because as it

00:41:28.584 --> 00:41:29.653
gets too strong,

00:41:29.693 --> 00:41:31.033
ultimately that's

00:41:31.044 --> 00:41:32.143
why they have dollar

00:41:32.143 --> 00:41:33.323
swap lines in place

00:41:33.323 --> 00:41:34.833
with places like UAE,

00:41:35.253 --> 00:41:36.553
because it's like

00:41:36.553 --> 00:41:37.594
the, the version of

00:41:37.594 --> 00:41:38.553
the emerging markets

00:41:38.583 --> 00:41:39.613
debt squeeze, except

00:41:39.613 --> 00:41:40.303
it's not debt,

00:41:40.303 --> 00:41:41.453
it's just dollar

00:41:41.454 --> 00:41:42.224
obligations 'cause

00:41:42.224 --> 00:41:43.163
it's so integrated

00:41:43.163 --> 00:41:43.933
into the system.

00:41:44.463 --> 00:41:45.673
And if foreign

00:41:45.673 --> 00:41:46.353
countries don't

00:41:46.353 --> 00:41:47.183
have dollars for

00:41:47.183 --> 00:41:48.273
whatever reason,

00:41:48.493 --> 00:41:49.043
they would have to

00:41:49.044 --> 00:41:50.343
sell US denominated

00:41:50.363 --> 00:41:51.233
assets in their

00:41:51.624 --> 00:41:52.223
sovereign wealth

00:41:52.223 --> 00:41:52.853
funds and stuff.

00:41:52.853 --> 00:41:53.743
So to keep… There's

00:41:53.764 --> 00:41:54.483
all these different

00:41:54.493 --> 00:41:55.624
things that they do

00:41:56.083 --> 00:41:56.963
to keep the dollar

00:41:56.963 --> 00:41:58.864
strong and it  it…

00:41:58.933 --> 00:42:00.043
But they don't wanna

00:42:00.044 --> 00:42:00.863
get it too strong,

00:42:00.863 --> 00:42:01.503
so  I think they

00:42:01.503 --> 00:42:02.234
kinda wanna keep it

00:42:02.234 --> 00:42:03.104
in, in  the Goldil-

00:42:03.104 --> 00:42:04.453
Goldilocks scenario.

00:42:06.643 --> 00:42:07.783
So here's the

00:42:08.313 --> 00:42:09.143
defense, it's

00:42:09.163 --> 00:42:09.943
aerospace and

00:42:09.943 --> 00:42:12.224
defense  E- ETF.

00:42:13.516 --> 00:42:14.936
Versus the S&P.

00:42:15.326 --> 00:42:16.206
And what you

00:42:16.206 --> 00:42:17.206
can see is

00:42:20.456 --> 00:42:21.186
war is good

00:42:21.186 --> 00:42:21.875
for business.

00:42:21.896 --> 00:42:22.786
What can I tell you?

00:42:22.796 --> 00:42:22.816
Yeah.

00:42:23.426 --> 00:42:24.996
From 9/11 on, war is

00:42:24.996 --> 00:42:25.906
good for business.

00:42:26.366 --> 00:42:27.336
And  where on that

00:42:27.336 --> 00:42:28.186
chart did the Space

00:42:28.186 --> 00:42:28.695
Force come in?

00:42:30.990 --> 00:42:31.580
That's a good

00:42:31.580 --> 00:42:32.020
question.

00:42:32.020 --> 00:42:32.720
Space Force

00:42:32.720 --> 00:42:35.609
came  in 2018

00:42:35.879 --> 00:42:36.419
Okay

00:42:36.919 --> 00:42:38.450
…  is when Trump made

00:42:38.450 --> 00:42:38.919
the commitment.

00:42:39.319 --> 00:42:39.740
Okay

00:42:40.339 --> 00:42:40.989
So-

00:42:41.180 --> 00:42:41.560
' Cause that's

00:42:41.560 --> 00:42:42.639
definitely a focus

00:42:42.709 --> 00:42:43.989
on a lot of things

00:42:43.990 --> 00:42:45.319
in terms of aerospace

00:42:45.319 --> 00:42:46.579
and- Yep … and

00:42:46.579 --> 00:42:47.060
the internet

00:42:47.060 --> 00:42:47.399
and everything.

00:42:47.399 --> 00:42:47.569
There's a

00:42:47.569 --> 00:42:48.180
whole bunch.

00:42:49.000 --> 00:42:49.299
Yep.

00:42:50.259 --> 00:42:53.229
And    that was  the,

00:42:55.214 --> 00:42:57.194
the reason s- or the

00:42:57.194 --> 00:42:58.574
justification behind

00:42:58.574 --> 00:43:00.724
SpaceX and  whose

00:43:00.724 --> 00:43:01.754
stock is plummeting

00:43:01.764 --> 00:43:02.714
as we speak.

00:43:03.054 --> 00:43:03.344
Yeah.

00:43:04.273 --> 00:43:04.663
And,

00:43:04.873 --> 00:43:05.753
Yeah, it's below the,

00:43:05.853 --> 00:43:06.813
the offering price,

00:43:06.824 --> 00:43:07.593
or it's below where

00:43:07.594 --> 00:43:08.523
it came to market at.

00:43:09.084 --> 00:43:09.913
Oh, by a lot.

00:43:09.944 --> 00:43:10.274
Yeah.

00:43:11.904 --> 00:43:12.854
So on Money and

00:43:12.854 --> 00:43:13.703
Markets this week,

00:43:13.703 --> 00:43:14.513
I explained to

00:43:14.513 --> 00:43:15.443
John how I could

00:43:15.444 --> 00:43:16.553
justify the huge

00:43:16.554 --> 00:43:18.644
valuation on SpaceX.

00:43:18.644 --> 00:43:19.923
If you believe that

00:43:21.444 --> 00:43:22.543
the subscribers went

00:43:22.544 --> 00:43:23.953
from 160 million

00:43:23.953 --> 00:43:24.913
into the billions,

00:43:24.944 --> 00:43:25.773
everyone had a

00:43:25.773 --> 00:43:26.844
Neuralink and was

00:43:26.933 --> 00:43:27.634
hooked up to the

00:43:27.634 --> 00:43:28.453
data center, you

00:43:28.453 --> 00:43:29.343
would have a complete

00:43:29.344 --> 00:43:30.114
control grid.

00:43:30.173 --> 00:43:30.553
Yeah.

00:43:31.074 --> 00:43:31.634
And that's how

00:43:31.634 --> 00:43:32.214
you get to the

00:43:32.214 --> 00:43:33.363
$10 trillion.

00:43:33.543 --> 00:43:34.633
It's very dark, but

00:43:34.633 --> 00:43:34.913
that's- Yes … how

00:43:34.914 --> 00:43:35.293
you get there.

00:43:35.304 --> 00:43:35.584
Yes.

00:43:36.284 --> 00:43:36.714
Okay.

00:43:37.083 --> 00:43:38.363
So we've been doing

00:43:38.374 --> 00:43:40.013
on the website  a

00:43:40.013 --> 00:43:41.194
digital control grid.

00:43:41.583 --> 00:43:42.094
When the

00:43:42.103 --> 00:43:42.883
administration

00:43:42.894 --> 00:43:43.534
s- when the Trump

00:43:43.534 --> 00:43:44.224
administration

00:43:44.224 --> 00:43:45.203
started, Tim, they

00:43:45.203 --> 00:43:47.043
were moving so fast

00:43:47.043 --> 00:43:47.803
to build the control

00:43:47.804 --> 00:43:48.424
grid, there were so

00:43:48.424 --> 00:43:49.324
many things happening

00:43:49.324 --> 00:43:50.293
each week, I couldn't

00:43:50.293 --> 00:43:51.233
remember them all.

00:43:51.683 --> 00:43:52.604
So I started writing

00:43:52.604 --> 00:43:53.593
long lists, and

00:43:53.593 --> 00:43:54.124
then finally I

00:43:54.124 --> 00:43:54.933
said, "Let's just

00:43:54.944 --> 00:43:55.564
put it up on the

00:43:55.564 --> 00:43:57.073
website." And then we

00:43:57.073 --> 00:43:58.493
ended up  regularly

00:43:58.493 --> 00:43:59.193
updating it.

00:43:59.214 --> 00:44:00.383
And- Yeah … if you

00:44:00.394 --> 00:44:01.924
have any doubt  any

00:44:01.924 --> 00:44:03.013
of the people who

00:44:03.023 --> 00:44:04.993
say, "Oh  Trump's

00:44:05.254 --> 00:44:06.014
part of the white

00:44:06.023 --> 00:44:06.973
hats and he's gonna

00:44:06.974 --> 00:44:07.793
save us," and I

00:44:07.794 --> 00:44:09.053
was like-  Let's

00:44:09.053 --> 00:44:10.553
go to the, the

00:44:10.553 --> 00:44:11.624
collection of the

00:44:11.624 --> 00:44:12.403
digital control

00:44:12.403 --> 00:44:13.293
grid at Solari,

00:44:13.553 --> 00:44:14.193
and let me show

00:44:14.193 --> 00:44:14.904
you all the things

00:44:14.904 --> 00:44:15.664
he's doing to build

00:44:15.664 --> 00:44:16.424
the control grid."

00:44:16.534 --> 00:44:16.924
Yeah.

00:44:17.903 --> 00:44:19.223
And this is a very

00:44:19.223 --> 00:44:20.243
aggressive, very

00:44:20.243 --> 00:44:21.443
well-organized, very

00:44:21.443 --> 00:44:22.564
intentional plan.

00:44:22.983 --> 00:44:23.613
I don't know who

00:44:23.614 --> 00:44:24.613
built this plan.

00:44:24.684 --> 00:44:25.474
I'm sure it wasn't

00:44:25.474 --> 00:44:26.083
anybody in the

00:44:26.083 --> 00:44:26.754
control grid.

00:44:26.754 --> 00:44:27.423
I'm sure it was

00:44:27.434 --> 00:44:29.453
outside,  but-

00:44:29.473 --> 00:44:29.884
In the

00:44:29.884 --> 00:44:30.833
administration, yeah.

00:44:31.583 --> 00:44:32.663
W- whoever designed

00:44:32.663 --> 00:44:32.773
the- Trump does

00:44:32.773 --> 00:44:33.233
not have agency.

00:44:35.644 --> 00:44:36.473
But he's doing…

00:44:37.123 --> 00:44:38.313
The reason you can

00:44:38.313 --> 00:44:39.593
grift as much as he's

00:44:39.593 --> 00:44:42.153
grifting  I'm working

00:44:42.153 --> 00:44:42.753
on a piece called

00:44:42.754 --> 00:44:43.534
Vectors of Grift.

00:44:43.563 --> 00:44:44.363
The reason you can

00:44:44.363 --> 00:44:45.073
grift that much

00:44:45.074 --> 00:44:45.743
is because you're

00:44:45.754 --> 00:44:46.663
getting done for

00:44:46.663 --> 00:44:47.383
them what you-

00:44:47.663 --> 00:44:47.993
Right

00:44:49.034 --> 00:44:49.823
What they want.

00:44:49.933 --> 00:44:51.463
And so  you're

00:44:51.473 --> 00:44:52.323
building the control

00:44:52.324 --> 00:44:52.763
grid, and they're

00:44:52.763 --> 00:44:53.413
saying, "Okay,

00:44:53.413 --> 00:44:54.123
you can have your

00:44:54.133 --> 00:44:55.033
piece. This is…"

00:44:55.803 --> 00:44:56.053
yeah.

00:44:56.504 --> 00:44:57.823
I guess one quick

00:44:57.824 --> 00:44:58.363
question before,

00:44:58.363 --> 00:44:59.093
just that comes

00:44:59.093 --> 00:44:59.663
to mind there

00:44:59.663 --> 00:45:00.283
with the control

00:45:00.284 --> 00:45:01.803
grid  and Trump

00:45:02.373 --> 00:45:03.293
executing and being

00:45:03.294 --> 00:45:03.963
allowed to grift.

00:45:03.963 --> 00:45:05.433
Do you think if there

00:45:05.434 --> 00:45:06.494
was a switch, I…

00:45:06.494 --> 00:45:07.953
And who knows, but

00:45:07.953 --> 00:45:08.733
say there's a switch

00:45:08.734 --> 00:45:09.784
to the Democrat

00:45:10.633 --> 00:45:11.793
in the midterms,

00:45:12.813 --> 00:45:14.063
would that impact

00:45:14.124 --> 00:45:15.974
at all Trump's

00:45:15.974 --> 00:45:17.593
ability to continue

00:45:17.593 --> 00:45:18.054
as he's doing?

00:45:19.234 --> 00:45:20.274
Yes, and I'll

00:45:20.274 --> 00:45:21.013
tell you why.

00:45:21.533 --> 00:45:23.224
The, the Democrat

00:45:23.224 --> 00:45:24.643
right now, Polymarket

00:45:24.684 --> 00:45:26.213
gives very good,

00:45:26.283 --> 00:45:27.083
strong odds to

00:45:27.093 --> 00:45:27.764
the Democrats

00:45:27.764 --> 00:45:28.683
taking the House.

00:45:29.483 --> 00:45:30.223
But it gives

00:45:31.113 --> 00:45:33.453
majority  or  more

00:45:33.453 --> 00:45:34.484
than the opposite

00:45:35.074 --> 00:45:35.933
chances that the

00:45:35.934 --> 00:45:36.553
Democrats get

00:45:36.553 --> 00:45:37.263
a full sweep.

00:45:38.214 --> 00:45:38.933
If you go to the

00:45:38.934 --> 00:45:39.764
AIPAC Tracker

00:45:39.764 --> 00:45:40.754
website, we now have

00:45:40.754 --> 00:45:42.714
30 primary candidates

00:45:42.714 --> 00:45:44.183
who've won who

00:45:44.184 --> 00:45:45.023
are, quote-unquote,

00:45:45.053 --> 00:45:45.973
"AIPAC-free."

00:45:46.023 --> 00:45:46.594
They won't take

00:45:46.594 --> 00:45:47.364
money from AIPAC.

00:45:47.404 --> 00:45:47.924
Oh, good.

00:45:49.020 --> 00:45:49.940
And so there is

00:45:50.040 --> 00:45:51.129
a huge backlash

00:45:51.129 --> 00:45:52.190
against incumbents.

00:45:52.200 --> 00:45:53.430
It's gonna, it's

00:45:53.440 --> 00:45:54.819
probably gonna hurt

00:45:55.149 --> 00:45:56.029
Republicans more

00:45:56.029 --> 00:45:56.730
than Democrats.

00:45:57.220 --> 00:45:58.029
It's my guess.

00:45:59.080 --> 00:45:59.950
But Trump will just

00:45:59.950 --> 00:46:00.549
continue… What do

00:46:00.549 --> 00:46:01.099
you… He would not

00:46:01.100 --> 00:46:01.989
continue unabated?

00:46:02.000 --> 00:46:02.210
That would

00:46:02.210 --> 00:46:02.740
have an impact.

00:46:04.049 --> 00:46:04.470
Here's what

00:46:04.470 --> 00:46:04.919
would happen.

00:46:04.930 --> 00:46:05.779
Let's assume the,

00:46:05.899 --> 00:46:06.700
the Democrats

00:46:06.700 --> 00:46:07.489
get the House.

00:46:08.250 --> 00:46:08.940
If they get the

00:46:08.940 --> 00:46:10.139
House, they're gonna

00:46:10.139 --> 00:46:11.029
have impeachment

00:46:11.039 --> 00:46:11.629
hearing after

00:46:11.629 --> 00:46:12.709
impeachment hearing,

00:46:13.199 --> 00:46:13.959
and it will bring

00:46:13.959 --> 00:46:15.049
transparency and

00:46:15.049 --> 00:46:15.710
document what

00:46:15.779 --> 00:46:16.659
Trump is doing, but

00:46:16.750 --> 00:46:17.409
it won't be able

00:46:17.410 --> 00:46:18.129
to impeach him.

00:46:18.339 --> 00:46:18.680
Yeah.

00:46:19.109 --> 00:46:20.419
You need to get a

00:46:20.419 --> 00:46:21.579
majority Democrats

00:46:21.599 --> 00:46:22.480
in the Senate,

00:46:22.829 --> 00:46:23.570
and then enough

00:46:23.570 --> 00:46:24.609
Republicans scared

00:46:24.609 --> 00:46:26.240
about 2028 elections

00:46:26.240 --> 00:46:27.059
to go with them.

00:46:27.889 --> 00:46:28.269
Okay?

00:46:28.680 --> 00:46:29.549
So I think at a

00:46:29.559 --> 00:46:30.440
minimum you're gonna

00:46:30.440 --> 00:46:31.740
get documentation,

00:46:32.259 --> 00:46:32.850
and the worm

00:46:32.850 --> 00:46:33.729
is gonna turn.

00:46:34.239 --> 00:46:35.129
So maybe slow

00:46:35.160 --> 00:46:36.149
down  the effort

00:46:36.349 --> 00:46:36.989
to some degree.

00:46:37.700 --> 00:46:38.539
It should slow

00:46:38.540 --> 00:46:39.290
down the effort

00:46:39.299 --> 00:46:40.109
to some degree.

00:46:40.139 --> 00:46:40.469
But,

00:46:42.538 --> 00:46:44.538
The deeper effort

00:46:44.548 --> 00:46:46.058
here is the central

00:46:46.068 --> 00:46:46.998
bankers are going

00:46:46.998 --> 00:46:48.548
to use that to prove

00:46:48.548 --> 00:46:50.638
to America that

00:46:50.638 --> 00:46:51.588
you can't trust

00:46:51.598 --> 00:46:52.968
the electorate to

00:46:55.537 --> 00:46:57.238
And voting to produce

00:46:57.238 --> 00:46:58.447
decent candidates.

00:46:58.777 --> 00:46:59.378
In other words,

00:46:59.767 --> 00:47:00.298
they're gonna,

00:47:00.398 --> 00:47:01.447
they're gonna blame

00:47:01.447 --> 00:47:03.347
the dog kings on

00:47:03.347 --> 00:47:04.058
the electorate

00:47:04.087 --> 00:47:04.708
and prove that

00:47:04.708 --> 00:47:05.388
the bankers should

00:47:05.388 --> 00:47:06.608
run fiscal policy.

00:47:07.818 --> 00:47:08.688
That right there

00:47:08.688 --> 00:47:09.558
is the answer, that

00:47:09.558 --> 00:47:10.448
the bankers run

00:47:10.448 --> 00:47:11.537
fiscal policy about

00:47:11.537 --> 00:47:12.247
the goal of it.

00:47:12.558 --> 00:47:12.858
Yeah.

00:47:12.907 --> 00:47:13.217
Because you

00:47:13.218 --> 00:47:14.087
say, " why?

00:47:14.097 --> 00:47:14.857
Why do you wanna

00:47:14.867 --> 00:47:17.557
do all this    and

00:47:17.568 --> 00:47:18.617
convince the voters,"

00:47:18.617 --> 00:47:18.937
which they're

00:47:18.937 --> 00:47:19.747
doing, "that voting

00:47:19.748 --> 00:47:20.417
does not matter?"

00:47:21.527 --> 00:47:22.617
And but here's

00:47:22.617 --> 00:47:22.947
the thing.

00:47:22.958 --> 00:47:24.158
You have a system

00:47:24.548 --> 00:47:25.678
that's remarkably

00:47:25.678 --> 00:47:26.158
good if…

00:47:26.167 --> 00:47:27.157
For, for example,

00:47:27.158 --> 00:47:27.757
the financial

00:47:27.757 --> 00:47:28.528
management laws,

00:47:28.557 --> 00:47:29.638
they're  very good.

00:47:29.917 --> 00:47:30.327
Okay?

00:47:30.638 --> 00:47:30.808
Yeah.

00:47:30.808 --> 00:47:31.527
The problem is

00:47:31.537 --> 00:47:32.158
not that you don't

00:47:32.158 --> 00:47:32.797
have good laws.

00:47:32.807 --> 00:47:33.448
The problem is you're

00:47:33.448 --> 00:47:34.377
not enforcing them.

00:47:35.818 --> 00:47:36.958
So this week, cover

00:47:37.588 --> 00:47:38.497
first page on Wall

00:47:38.498 --> 00:47:39.257
Street Journal,

00:47:39.607 --> 00:47:40.547
Department of Justice

00:47:40.548 --> 00:47:41.147
says it's gonna

00:47:41.147 --> 00:47:42.198
pursue corporations

00:47:42.198 --> 00:47:43.677
even less, and I was

00:47:43.677 --> 00:47:44.297
surprised, 'cause

00:47:44.298 --> 00:47:44.697
I thought they

00:47:44.697 --> 00:47:45.668
weren't pursuing any

00:47:45.668 --> 00:47:46.597
of them, and they

00:47:46.597 --> 00:47:47.077
just said they're

00:47:47.077 --> 00:47:47.967
gonna charge a fee.

00:47:47.967 --> 00:47:49.387
So crime is fine,

00:47:49.808 --> 00:47:50.617
corporate crime is

00:47:50.617 --> 00:47:51.447
fine as long as the

00:47:51.448 --> 00:47:52.237
Department of Justice

00:47:52.238 --> 00:47:53.097
gets a kickback.

00:47:54.577 --> 00:47:55.018
But then at the

00:47:55.018 --> 00:47:55.477
same time you have

00:47:55.478 --> 00:47:56.508
the, the  Con,

00:47:56.768 --> 00:47:57.187
the Constitution

00:47:57.187 --> 00:47:58.498
Convention, you

00:47:58.498 --> 00:47:59.427
have the Democratic

00:47:59.427 --> 00:48:00.567
Socialist of America.

00:48:00.577 --> 00:48:00.968
You have all

00:48:00.968 --> 00:48:01.727
these different

00:48:02.107 --> 00:48:03.177
alternatives,

00:48:03.827 --> 00:48:04.327
and if you would

00:48:04.338 --> 00:48:05.338
just enforce the

00:48:05.338 --> 00:48:06.328
Constitution-

00:48:06.768 --> 00:48:07.428
You'd be fine

00:48:07.437 --> 00:48:08.028
you'd be fine.

00:48:09.007 --> 00:48:09.638
You'd be fine.

00:48:09.967 --> 00:48:10.688
You'd have to tighten

00:48:10.688 --> 00:48:11.547
your belts, but- Yeah

00:48:11.548 --> 00:48:12.067
… you'd be fine.

00:48:13.878 --> 00:48:14.857
You decide whether

00:48:14.857 --> 00:48:15.647
you want a big

00:48:15.647 --> 00:48:16.567
stock portfolio or

00:48:16.637 --> 00:48:17.418
the rule of law.

00:48:17.427 --> 00:48:18.477
I prefer the rule

00:48:18.478 --> 00:48:19.377
of law, because

00:48:19.728 --> 00:48:20.637
without it, they

00:48:20.637 --> 00:48:21.787
won't be my assets.

00:48:21.798 --> 00:48:22.078
Yes.

00:48:22.628 --> 00:48:23.597
Speaking of which,

00:48:23.628 --> 00:48:24.488
so this is the

00:48:24.507 --> 00:48:25.127
Going Direct

00:48:25.127 --> 00:48:26.137
reset from August

00:48:26.137 --> 00:48:29.148
19, 20, 2019 on.

00:48:29.207 --> 00:48:31.328
And so essentially,

00:48:32.707 --> 00:48:33.997
the top 10 companies

00:48:33.997 --> 00:48:34.857
are basically the

00:48:34.857 --> 00:48:35.668
companies building

00:48:35.668 --> 00:48:36.357
the control grid.

00:48:36.367 --> 00:48:37.387
You got Microsoft,

00:48:37.387 --> 00:48:38.137
you got Google,

00:48:38.137 --> 00:48:38.867
you've got Meta,

00:48:38.867 --> 00:48:40.067
you've got Nvidia.

00:48:41.497 --> 00:48:42.618
So the companies that

00:48:42.618 --> 00:48:43.807
are building your

00:48:43.847 --> 00:48:45.247
panopticon prison-

00:48:46.048 --> 00:48:47.047
Are out-performing

00:48:47.048 --> 00:48:47.717
everybody else,

00:48:47.717 --> 00:48:48.367
and that's because

00:48:48.367 --> 00:48:49.607
you have a tsunami

00:48:49.607 --> 00:48:50.187
of government

00:48:50.187 --> 00:48:50.958
money directly

00:48:50.978 --> 00:48:51.567
and indirectly

00:48:51.567 --> 00:48:52.377
pouring into them.

00:48:52.677 --> 00:48:52.967
Yeah.

00:48:53.418 --> 00:48:54.408
Including the CHIPS

00:48:54.408 --> 00:48:55.587
Act and the one

00:48:55.597 --> 00:48:56.698
big beautiful bill.

00:48:56.748 --> 00:48:57.777
And that downturn

00:48:58.088 --> 00:48:58.828
in the graph is

00:48:58.828 --> 00:48:59.987
maybe post-COVID

00:48:59.987 --> 00:49:01.047
or it was the

00:49:01.047 --> 00:49:02.647
COVID dip quickly?

00:49:03.498 --> 00:49:04.127
No, this is,

00:49:04.948 --> 00:49:05.948
What is the low point

00:49:05.948 --> 00:49:07.047
on the orange line?

00:49:07.517 --> 00:49:08.017
That would be

00:49:08.017 --> 00:49:08.837
the COVID dip.

00:49:09.257 --> 00:49:09.837
Yeah, okay.

00:49:10.207 --> 00:49:11.807
Yeah, so that's 2023.

00:49:11.927 --> 00:49:12.297
Okay.

00:49:14.080 --> 00:49:14.870
Now, the reason

00:49:14.870 --> 00:49:15.880
I mention this is

00:49:15.880 --> 00:49:17.140
it means your…

00:49:17.400 --> 00:49:18.350
If you're in index

00:49:18.350 --> 00:49:19.840
funds, you're

00:49:19.840 --> 00:49:20.870
financing the prison.

00:49:21.550 --> 00:49:23.380
So we've seen the

00:49:23.380 --> 00:49:24.680
big index funds

00:49:24.990 --> 00:49:25.390
produce IRAs and

00:49:25.390 --> 00:49:27.949
401s where 35 to

00:49:27.959 --> 00:49:30.019
50% of your money

00:49:30.639 --> 00:49:32.040
is in the S&P 10.

00:49:33.120 --> 00:49:33.989
Yeah, and it's also

00:49:33.999 --> 00:49:34.890
just because the way

00:49:34.890 --> 00:49:35.950
the index is created,

00:49:35.950 --> 00:49:37.009
that as the, the

00:49:37.020 --> 00:49:37.979
best performers get

00:49:38.020 --> 00:49:38.820
bigger and bigger,

00:49:38.820 --> 00:49:39.759
they take on a bigger

00:49:39.760 --> 00:49:40.609
share of the index

00:49:40.819 --> 00:49:41.440
because of the way

00:49:41.440 --> 00:49:42.069
it's calculated.

00:49:44.659 --> 00:49:45.349
And we've seen

00:49:45.360 --> 00:49:47.389
disturbing behavior

00:49:47.399 --> 00:49:48.600
by the indices to

00:49:48.600 --> 00:49:49.690
change their rules so

00:49:49.710 --> 00:49:50.579
SpaceX- Yes … could

00:49:50.579 --> 00:49:51.439
suck up a huge

00:49:51.440 --> 00:49:52.469
amount of your money.

00:49:53.100 --> 00:49:54.179
It's a- another

00:49:54.179 --> 00:49:54.619
aspect of just

00:49:54.629 --> 00:49:55.519
going outside the

00:49:55.519 --> 00:49:56.370
rules, outside

00:49:56.370 --> 00:49:57.349
the law, outside

00:49:57.350 --> 00:49:58.259
the pre-agreed

00:49:58.390 --> 00:49:59.189
way we operate.

00:50:02.006 --> 00:50:02.816
So this is our

00:50:02.816 --> 00:50:03.276
article, our

00:50:03.276 --> 00:50:04.856
taxpayers helping

00:50:04.856 --> 00:50:05.746
to finance America's

00:50:05.746 --> 00:50:06.486
data centers.

00:50:06.946 --> 00:50:07.516
Don't believe

00:50:07.516 --> 00:50:08.306
anybody who says

00:50:08.306 --> 00:50:08.886
these things are

00:50:08.886 --> 00:50:09.975
privately financed.

00:50:09.996 --> 00:50:10.475
We're gonna…

00:50:10.846 --> 00:50:11.886
We're working on a

00:50:11.946 --> 00:50:13.196
part two of this.

00:50:15.035 --> 00:50:16.316
On, on, okay,

00:50:16.316 --> 00:50:17.576
privately are

00:50:17.576 --> 00:50:18.366
you financing

00:50:18.366 --> 00:50:18.776
it with your

00:50:18.776 --> 00:50:19.705
retirement funds?

00:50:19.736 --> 00:50:21.046
And what it'll show

00:50:21.046 --> 00:50:22.635
is there's tremendous

00:50:22.636 --> 00:50:23.315
government money

00:50:23.316 --> 00:50:23.906
coming in at the

00:50:23.906 --> 00:50:24.695
corporate level

00:50:24.695 --> 00:50:25.665
that's then going

00:50:25.665 --> 00:50:27.225
in, but then they are

00:50:27.225 --> 00:50:28.145
sucking up all the

00:50:28.145 --> 00:50:30.366
money in your IRAs

00:50:30.366 --> 00:50:31.155
and 401ks to do this.

00:50:31.455 --> 00:50:33.065
And it's frightening

00:50:33.066 --> 00:50:34.245
because  if you

00:50:34.245 --> 00:50:35.746
go to a meeting

00:50:35.756 --> 00:50:36.676
locally of people

00:50:36.676 --> 00:50:37.565
trying to stop data

00:50:37.565 --> 00:50:38.635
centers-  I don't

00:50:38.635 --> 00:50:39.515
think they realize

00:50:39.515 --> 00:50:40.305
their retirement

00:50:40.306 --> 00:50:41.156
savings is what's

00:50:41.156 --> 00:50:42.036
financing this.

00:50:42.306 --> 00:50:43.075
And to be clear,

00:50:43.076 --> 00:50:43.786
when you say that,

00:50:43.806 --> 00:50:44.735
it's the investment

00:50:44.785 --> 00:50:46.025
in those top 10

00:50:46.346 --> 00:50:47.225
in the index that

00:50:47.225 --> 00:50:47.725
you're talking about.

00:50:48.466 --> 00:50:49.156
Exactly.

00:50:50.076 --> 00:50:52.006
So one, another thing

00:50:52.006 --> 00:50:53.016
we're publishing

00:50:53.056 --> 00:50:54.895
is we've got  a

00:50:54.895 --> 00:50:55.705
collection called

00:50:55.716 --> 00:50:56.775
Energy Infrastructure

00:50:56.775 --> 00:50:57.496
and Trade Rou-

00:50:57.506 --> 00:50:58.975
Disruption, and

00:50:58.975 --> 00:50:59.775
I think it's very

00:50:59.775 --> 00:51:00.645
important to see

00:51:00.645 --> 00:51:01.775
this in the context

00:51:01.775 --> 00:51:02.715
of what's happening

00:51:02.725 --> 00:51:04.845
in   announcing…

00:51:05.306 --> 00:51:05.945
I would point out

00:51:06.225 --> 00:51:07.066
we really shouldn't

00:51:07.066 --> 00:51:07.555
call it World

00:51:07.556 --> 00:51:08.875
War III since the

00:51:09.415 --> 00:51:10.326
Congress has never

00:51:10.335 --> 00:51:11.385
voted to- Right

00:51:11.645 --> 00:51:12.335
Start a war.

00:51:12.715 --> 00:51:12.915
Yeah.

00:51:14.145 --> 00:51:14.735
It… W- what

00:51:14.736 --> 00:51:15.365
did we call it?

00:51:15.365 --> 00:51:15.935
It's a, it's

00:51:15.935 --> 00:51:16.735
an excursion.

00:51:17.335 --> 00:51:17.875
Yes, you're right.

00:51:17.886 --> 00:51:17.916
Yes.

00:51:17.925 --> 00:51:18.475
It's a Wor-

00:51:18.575 --> 00:51:19.375
World War III-

00:51:19.575 --> 00:51:20.256
Yes … excursion.

00:51:20.256 --> 00:51:20.645
I don't think

00:51:20.645 --> 00:51:21.275
anything has been

00:51:21.276 --> 00:51:22.105
called a war since

00:51:22.215 --> 00:51:22.585
World War II.

00:51:25.585 --> 00:51:27.025
Anyway  so if you

00:51:27.026 --> 00:51:29.025
look at  what's

00:51:29.026 --> 00:51:30.505
happening, it's not

00:51:30.505 --> 00:51:31.335
just in the Ukraine,

00:51:31.335 --> 00:51:32.035
it's not just in

00:51:32.035 --> 00:51:32.585
the Middle East.

00:51:32.596 --> 00:51:33.796
All around the world,

00:51:34.365 --> 00:51:35.685
energy infrastructure

00:51:35.685 --> 00:51:36.406
and trade routes

00:51:36.406 --> 00:51:37.395
are being disrupted

00:51:37.435 --> 00:51:38.365
and sabotaged.

00:51:39.045 --> 00:51:39.835
And this is- And-

00:51:40.065 --> 00:51:40.865
… even in current

00:51:40.875 --> 00:51:42.756
news, the recent…

00:51:42.795 --> 00:51:44.015
Why are the Houthis

00:51:44.846 --> 00:51:45.736
attacking ships in

00:51:45.736 --> 00:51:46.815
the Mandeb Le Bab

00:51:46.815 --> 00:51:48.045
Strait, which is the

00:51:48.045 --> 00:51:49.375
bottom  the bottom

00:51:49.375 --> 00:51:50.405
part of the Red Sea?

00:51:51.175 --> 00:51:52.295
I'm like, okay, how

00:51:52.295 --> 00:51:53.185
much does it cost

00:51:53.206 --> 00:51:54.945
the CIA or whoever

00:51:55.195 --> 00:51:56.055
to pay the Houthis

00:51:56.085 --> 00:51:57.235
to fly, to sail over

00:51:57.236 --> 00:51:58.515
there  and bomb a

00:51:58.515 --> 00:51:59.475
couple of ships?

00:52:00.625 --> 00:52:01.276
It's ridiculous.

00:52:01.915 --> 00:52:02.715
When you look at

00:52:02.715 --> 00:52:03.395
this collection,

00:52:03.395 --> 00:52:03.865
and we've had

00:52:03.865 --> 00:52:04.845
Corey Lynn updating

00:52:04.846 --> 00:52:05.406
it every month.

00:52:05.406 --> 00:52:06.235
She'll update,

00:52:06.605 --> 00:52:07.285
we just finished

00:52:07.285 --> 00:52:08.025
the June update.

00:52:08.026 --> 00:52:09.265
She'll update July

00:52:10.465 --> 00:52:11.705
after  when we

00:52:11.706 --> 00:52:12.555
get into August.

00:52:12.575 --> 00:52:13.315
But if you look

00:52:13.316 --> 00:52:13.936
at this, what you

00:52:13.936 --> 00:52:15.946
realize is I don't

00:52:15.956 --> 00:52:17.095
know anybody who

00:52:17.096 --> 00:52:17.986
could do anything

00:52:17.986 --> 00:52:20.504
that big- Other

00:52:20.504 --> 00:52:21.484
than US military

00:52:21.484 --> 00:52:22.274
and intelligence.

00:52:22.334 --> 00:52:22.704
Yeah.

00:52:22.794 --> 00:52:23.494
' Cause it's happening

00:52:23.504 --> 00:52:24.484
everywhere, including

00:52:24.484 --> 00:52:25.434
in the United States

00:52:25.444 --> 00:52:27.084
Right And it's no

00:52:27.104 --> 00:52:28.454
accident, and w- and

00:52:28.454 --> 00:52:29.304
what's gonna happen

00:52:29.304 --> 00:52:29.784
is you're gonna

00:52:29.784 --> 00:52:32.334
have  consolidation

00:52:32.334 --> 00:52:33.284
and control of

00:52:33.284 --> 00:52:34.194
the fossil fuel

00:52:34.214 --> 00:52:35.644
energy channel by a

00:52:35.644 --> 00:52:36.764
remarkably limited

00:52:36.774 --> 00:52:37.734
number of players.

00:52:38.783 --> 00:52:39.544
And to be clear,

00:52:39.544 --> 00:52:40.513
now the oil price

00:52:40.514 --> 00:52:41.413
is b- is to me

00:52:41.413 --> 00:52:42.213
is artificially

00:52:42.213 --> 00:52:42.874
held down right

00:52:42.874 --> 00:52:44.193
now, but an- Right

00:52:44.203 --> 00:52:45.353
increase in the oil

00:52:45.354 --> 00:52:47.153
price to any kind of

00:52:47.184 --> 00:52:48.374
uncomfortable level

00:52:48.733 --> 00:52:49.443
functionally has

00:52:49.443 --> 00:52:50.243
the same effect as

00:52:50.244 --> 00:52:51.243
the COVID lockdowns

00:52:51.264 --> 00:52:51.994
without COVID.

00:52:52.994 --> 00:52:53.303
Oh, it's

00:52:53.304 --> 00:52:53.994
doing it now.

00:52:53.994 --> 00:52:55.393
You're-  you're

00:52:55.393 --> 00:52:56.463
putting… And

00:52:56.464 --> 00:52:56.964
it's certainly

00:52:56.964 --> 00:52:57.753
happening in Europe

00:52:57.753 --> 00:52:58.563
once you cut off

00:52:58.563 --> 00:52:59.583
the cheap gas.

00:53:00.694 --> 00:53:02.133
You have so many

00:53:02.203 --> 00:53:02.913
companies in

00:53:02.913 --> 00:53:04.104
Germany failing,

00:53:04.494 --> 00:53:05.643
going bankrupt, or

00:53:05.643 --> 00:53:06.794
moving to China to

00:53:06.794 --> 00:53:07.743
get cheap energy.

00:53:07.793 --> 00:53:08.163
Yeah.

00:53:08.744 --> 00:53:09.794
It's unbelievable.

00:53:09.823 --> 00:53:11.203
Anyway, but to

00:53:11.203 --> 00:53:12.263
me, when you look

00:53:12.264 --> 00:53:13.153
at this, this is

00:53:13.154 --> 00:53:14.123
World War III.

00:53:14.904 --> 00:53:17.413
World War III is a

00:53:17.413 --> 00:53:19.663
major reorganization

00:53:19.663 --> 00:53:20.953
and manipulation of

00:53:20.963 --> 00:53:22.583
the energy markets,

00:53:22.584 --> 00:53:23.273
whether it's the

00:53:23.273 --> 00:53:24.333
trade infrastructure

00:53:24.333 --> 00:53:26.104
or the refining

00:53:26.104 --> 00:53:27.703
or capacity or

00:53:28.174 --> 00:53:29.113
other facilities.

00:53:29.113 --> 00:53:30.353
And the quote that

00:53:30.354 --> 00:53:31.183
we use on this

00:53:31.184 --> 00:53:32.703
article  collection

00:53:32.703 --> 00:53:33.453
is, "This doesn't

00:53:33.453 --> 00:53:34.213
look like panic.

00:53:34.214 --> 00:53:34.804
It looks like

00:53:34.804 --> 00:53:35.343
a pivot."

00:53:35.613 --> 00:53:36.073
Yeah.

00:53:36.703 --> 00:53:37.553
It- it happens in

00:53:37.553 --> 00:53:38.224
such slow motion,

00:53:38.224 --> 00:53:39.013
but it makes me think

00:53:39.013 --> 00:53:40.153
of the Michael Yon

00:53:40.623 --> 00:53:41.593
predictions about

00:53:42.394 --> 00:53:43.243
choke points and

00:53:43.244 --> 00:53:43.853
different things.

00:53:44.233 --> 00:53:45.184
It's amazing how all

00:53:45.184 --> 00:53:45.913
the different things

00:53:45.913 --> 00:53:46.893
all are aligning.

00:53:48.093 --> 00:53:50.174
I don't see how  we

00:53:50.174 --> 00:53:50.883
get through this

00:53:50.883 --> 00:53:51.714
without a famine.

00:53:52.953 --> 00:53:53.433
Yeah, it's-

00:53:53.433 --> 00:53:53.994
it's gonna…

00:53:54.123 --> 00:53:54.553
We- we're

00:53:54.553 --> 00:53:55.323
gonna find out.

00:53:55.383 --> 00:53:55.893
We'll see.

00:53:58.953 --> 00:54:00.413
One big question

00:54:01.023 --> 00:54:02.423
the- the sovereign

00:54:02.424 --> 00:54:03.043
wealth funds in

00:54:03.043 --> 00:54:03.634
the Middle East

00:54:03.634 --> 00:54:04.474
have played a

00:54:04.483 --> 00:54:05.714
significant role

00:54:05.744 --> 00:54:07.703
in  serving as an

00:54:07.714 --> 00:54:08.843
intermediary between

00:54:08.843 --> 00:54:09.763
East and West.

00:54:10.443 --> 00:54:10.993
And they've been

00:54:10.994 --> 00:54:12.463
a huge way where

00:54:12.464 --> 00:54:13.713
the plunder team

00:54:16.978 --> 00:54:17.848
does a series of

00:54:17.848 --> 00:54:18.928
things that make

00:54:18.928 --> 00:54:19.738
them money, and

00:54:19.738 --> 00:54:20.558
then they route the

00:54:20.567 --> 00:54:21.658
money back into inv-

00:54:21.758 --> 00:54:22.768
preferred investment

00:54:22.768 --> 00:54:23.808
in the United States.

00:54:24.558 --> 00:54:24.808
It's almost like

00:54:24.808 --> 00:54:25.538
they're being used

00:54:25.558 --> 00:54:26.598
to do a takeover

00:54:26.598 --> 00:54:27.257
and help with the

00:54:27.258 --> 00:54:28.127
financial coup.

00:54:28.647 --> 00:54:29.857
But now that we've

00:54:30.218 --> 00:54:31.487
watched the Iranians

00:54:31.498 --> 00:54:32.827
probably seriously

00:54:32.827 --> 00:54:34.098
damage or blow up all

00:54:34.098 --> 00:54:35.078
of our Middle Eastern

00:54:35.087 --> 00:54:35.978
bases that were gonna

00:54:35.978 --> 00:54:36.968
protect these guys-

00:54:36.968 --> 00:54:37.278
Yeah

00:54:38.308 --> 00:54:39.207
…   It's gonna be very

00:54:39.207 --> 00:54:40.047
interesting to see

00:54:40.048 --> 00:54:40.817
what the role of the

00:54:40.827 --> 00:54:41.647
Middle East sovereign

00:54:41.647 --> 00:54:42.707
wealth funds is

00:54:42.737 --> 00:54:43.758
from here on out.

00:54:44.247 --> 00:54:44.807
And what is

00:54:44.808 --> 00:54:45.447
their ability?

00:54:45.448 --> 00:54:46.028
So we mentioned

00:54:46.028 --> 00:54:46.797
before  the t-

00:54:46.907 --> 00:54:47.718
number two on that

00:54:47.718 --> 00:54:48.457
list is the UAE,

00:54:48.457 --> 00:54:50.158
Abu Dhabi Sovereign

00:54:50.158 --> 00:54:50.412
Wealth Fund.

00:54:50.412 --> 00:54:50.897
This is one of the

00:54:50.907 --> 00:54:52.528
oldest Gulf funds.

00:54:53.098 --> 00:54:53.907
And when they left

00:54:53.968 --> 00:54:55.867
NA-  whatever it's

00:54:55.867 --> 00:54:57.647
called, not  OPEC

00:54:59.538 --> 00:55:00.198
there was the whole

00:55:00.207 --> 00:55:00.717
push to give them

00:55:00.718 --> 00:55:01.758
a dollar swap line

00:55:01.758 --> 00:55:02.778
because all those

00:55:02.778 --> 00:55:04.658
funds hold US stocks

00:55:04.698 --> 00:55:05.938
and US treasuries.

00:55:06.777 --> 00:55:07.197
And they didn't

00:55:07.198 --> 00:55:07.957
want them selling

00:55:07.957 --> 00:55:08.297
any of it.

00:55:08.457 --> 00:55:09.127
And those guys,

00:55:09.137 --> 00:55:10.248
they needed cash.

00:55:10.677 --> 00:55:11.327
So you can't…

00:55:11.337 --> 00:55:12.087
They're burning ends

00:55:12.087 --> 00:55:12.827
at both ends of the

00:55:12.828 --> 00:55:14.738
candle, and it's  how

00:55:14.738 --> 00:55:15.788
long can it go on?

00:55:15.827 --> 00:55:16.737
And it… But then it

00:55:16.738 --> 00:55:17.397
reminds me, there's

00:55:17.397 --> 00:55:18.118
an old saying in the

00:55:18.118 --> 00:55:18.917
investment markets,

00:55:19.227 --> 00:55:19.947
"The markets can

00:55:19.948 --> 00:55:20.808
stay irrational

00:55:20.808 --> 00:55:21.357
longer than you

00:55:21.357 --> 00:55:22.048
can stay solvent."

00:55:23.397 --> 00:55:24.267
Exactly, because

00:55:24.267 --> 00:55:24.657
if they have

00:55:24.657 --> 00:55:25.437
a swap line-

00:55:25.667 --> 00:55:26.037
Yeah

00:55:26.637 --> 00:55:27.698
…  they can just start

00:55:28.317 --> 00:55:29.058
printing money.

00:55:29.078 --> 00:55:29.378
Yeah.

00:55:30.207 --> 00:55:30.607
They just

00:55:30.618 --> 00:55:31.567
print  print.

00:55:31.667 --> 00:55:32.377
But it allows them

00:55:32.377 --> 00:55:33.228
to stay in the

00:55:33.228 --> 00:55:34.298
system as it is,

00:55:34.317 --> 00:55:35.058
the dollar system.

00:55:35.468 --> 00:55:35.767
They don't

00:55:35.767 --> 00:55:36.567
have to move.

00:55:36.578 --> 00:55:37.248
The dollar doesn't

00:55:37.248 --> 00:55:38.127
have to go away.

00:55:38.157 --> 00:55:38.558
They don't have

00:55:38.558 --> 00:55:39.767
to move to the

00:55:39.767 --> 00:55:40.697
Chinese renminbi.

00:55:40.707 --> 00:55:41.197
They don't have to…

00:55:41.218 --> 00:55:42.018
They can just keep

00:55:42.027 --> 00:55:43.387
operating within

00:55:43.397 --> 00:55:44.127
the existing system.

00:55:45.518 --> 00:55:46.987
If you look at  the,

00:55:47.067 --> 00:55:48.187
what I pointed out to

00:55:48.188 --> 00:55:49.217
in the, the chart of

00:55:49.247 --> 00:55:52.038
the reserves, the  on

00:55:52.057 --> 00:55:53.727
those both reserves

00:55:53.727 --> 00:55:54.588
and Swiss system, the

00:55:54.597 --> 00:55:55.437
Chinese currency's

00:55:55.468 --> 00:55:56.097
going down-

00:55:57.078 --> 00:55:58.147
In percentage market.

00:55:58.147 --> 00:55:59.167
So it's not gaining

00:55:59.167 --> 00:56:01.957
market share  at all.

00:56:02.017 --> 00:56:03.647
Now, what is

00:56:03.647 --> 00:56:04.827
happening that you

00:56:04.828 --> 00:56:05.788
don't see when you

00:56:05.797 --> 00:56:06.897
do those numbers

00:56:06.947 --> 00:56:08.477
is The Economist

00:56:08.477 --> 00:56:09.287
just published a

00:56:09.297 --> 00:56:11.627
big article  in

00:56:11.627 --> 00:56:12.437
the most recent

00:56:12.438 --> 00:56:13.317
saying countries

00:56:13.317 --> 00:56:14.047
around the world

00:56:14.067 --> 00:56:15.147
are building payment

00:56:15.147 --> 00:56:16.447
systems and teaming

00:56:16.468 --> 00:56:17.308
up and connecting

00:56:17.308 --> 00:56:18.237
payment systems

00:56:18.637 --> 00:56:19.177
because they're

00:56:19.177 --> 00:56:20.267
watching Bessant

00:56:20.297 --> 00:56:21.207
run around and talk

00:56:21.218 --> 00:56:22.027
about seizing, and

00:56:22.027 --> 00:56:22.717
they're scared.

00:56:23.097 --> 00:56:23.757
Why wouldn't you?

00:56:23.917 --> 00:56:24.737
It's a logical

00:56:24.738 --> 00:56:25.308
reaction.

00:56:25.938 --> 00:56:26.758
I would.

00:56:26.847 --> 00:56:28.948
I…  Here's

00:56:28.948 --> 00:56:29.607
the question.

00:56:29.927 --> 00:56:30.977
Which do you value

00:56:31.018 --> 00:56:32.308
mu- more, that the

00:56:32.308 --> 00:56:33.537
assets are yours or

00:56:33.537 --> 00:56:34.377
they go up in value?

00:56:34.527 --> 00:56:34.707
Yes.

00:56:35.007 --> 00:56:35.287
Yeah.

00:56:36.357 --> 00:56:37.657
So I  I find

00:56:37.847 --> 00:56:38.628
Bessant's way

00:56:38.628 --> 00:56:39.387
of marketing to

00:56:39.387 --> 00:56:40.557
be very unusual.

00:56:40.578 --> 00:56:40.938
Yeah.

00:56:42.867 --> 00:56:43.677
Okay, so I just

00:56:43.677 --> 00:56:44.707
wanted to take a look

00:56:44.707 --> 00:56:46.487
at small, medium,

00:56:46.488 --> 00:56:47.448
and large caps,

00:56:47.497 --> 00:56:48.957
and  we keep hearing

00:56:48.957 --> 00:56:49.767
that large caps

00:56:49.768 --> 00:56:50.427
are outperforming

00:56:50.427 --> 00:56:50.857
everything.

00:56:50.857 --> 00:56:52.108
But actually small

00:56:53.398 --> 00:56:54.437
historically, small

00:56:54.438 --> 00:56:55.227
and medium caps

00:56:55.227 --> 00:56:55.537
always outperform.

00:56:56.218 --> 00:56:56.828
They're just much

00:56:56.828 --> 00:56:57.627
more volatile.

00:56:57.688 --> 00:56:58.747
And it's the

00:56:58.747 --> 00:56:59.678
same message.

00:56:59.897 --> 00:57:00.237
Yeah.

00:57:02.634 --> 00:57:04.013
So here we see

00:57:04.354 --> 00:57:05.924
the US has so

00:57:05.993 --> 00:57:08.584
outperformed  all

00:57:08.584 --> 00:57:09.394
the other markets.

00:57:09.394 --> 00:57:10.024
So you can see

00:57:10.024 --> 00:57:10.924
Europe is flat

00:57:10.924 --> 00:57:11.513
at the bottom.

00:57:11.513 --> 00:57:13.013
That's VG- the VGK,

00:57:13.024 --> 00:57:14.114
the Euro- Vanguard

00:57:14.114 --> 00:57:15.243
European ETF.

00:57:16.134 --> 00:57:18.343
But  the S&P has

00:57:18.553 --> 00:57:20.263
really  or US

00:57:20.263 --> 00:57:21.314
markets…  And

00:57:21.314 --> 00:57:22.303
every year I can

00:57:22.303 --> 00:57:23.334
remember  when I

00:57:23.334 --> 00:57:24.403
was working as an

00:57:24.403 --> 00:57:25.433
investment advisor,

00:57:25.433 --> 00:57:26.203
I would think, "Okay,

00:57:26.203 --> 00:57:27.254
this year finally

00:57:27.254 --> 00:57:27.843
we're gonna see a

00:57:27.844 --> 00:57:30.583
shift." And then,  uS

00:57:30.583 --> 00:57:32.273
market…  So the

00:57:32.274 --> 00:57:34.833
politics of shoveling

00:57:34.844 --> 00:57:36.183
monopoly money into

00:57:36.183 --> 00:57:37.574
US companies and

00:57:37.583 --> 00:57:38.504
doing everything you

00:57:38.504 --> 00:57:39.983
can to protect market

00:57:39.983 --> 00:57:40.943
share globally.

00:57:42.953 --> 00:57:44.133
And  that includes

00:57:44.134 --> 00:57:44.814
enforcement,

00:57:44.823 --> 00:57:45.453
military,

00:57:45.453 --> 00:57:46.163
everything else.

00:57:46.163 --> 00:57:47.858
So th- this is

00:57:47.858 --> 00:57:49.213
a machinery, and

00:57:49.213 --> 00:57:50.313
the machinery,

00:57:51.263 --> 00:57:52.743
the military and

00:57:52.743 --> 00:57:53.273
the financial

00:57:53.274 --> 00:57:54.133
machinery and the

00:57:54.134 --> 00:57:55.094
tech machinery is

00:57:55.094 --> 00:57:55.843
all designed to

00:57:55.844 --> 00:57:57.324
make sure that as

00:57:57.353 --> 00:57:58.143
much of the global

00:57:58.143 --> 00:57:59.104
economy is flowing

00:57:59.114 --> 00:58:00.373
through US stocks

00:58:01.433 --> 00:58:03.443
as other stocks.

00:58:03.623 --> 00:58:05.083
And so we don't, we

00:58:05.083 --> 00:58:06.303
no longer wanna be

00:58:06.314 --> 00:58:09.273
the pr-  the leading

00:58:09.274 --> 00:58:10.213
financial market.

00:58:10.713 --> 00:58:11.533
We want everything

00:58:11.534 --> 00:58:12.074
to go through

00:58:12.074 --> 00:58:12.793
our channel.

00:58:12.933 --> 00:58:13.283
Yeah.

00:58:13.543 --> 00:58:14.353
This is one place

00:58:14.354 --> 00:58:15.093
where you can see

00:58:15.094 --> 00:58:15.803
the effect when

00:58:15.803 --> 00:58:16.573
people are worried

00:58:16.573 --> 00:58:18.063
about the collapse

00:58:18.064 --> 00:58:18.883
of the dollar.

00:58:19.354 --> 00:58:20.193
The, if you look

00:58:20.193 --> 00:58:21.183
at the left side of

00:58:21.183 --> 00:58:21.954
this graph with the

00:58:21.954 --> 00:58:22.944
green line that's

00:58:22.953 --> 00:58:24.854
going up, that is

00:58:24.854 --> 00:58:25.884
the point from 2000

00:58:25.893 --> 00:58:27.543
to, or 2002 to 2008,

00:58:29.153 --> 00:58:30.203
the US dollar c-

00:58:30.213 --> 00:58:31.583
declined by 40%.

00:58:31.994 --> 00:58:32.713
And you could see

00:58:32.713 --> 00:58:33.573
the effect of that.

00:58:33.573 --> 00:58:34.304
The blue line

00:58:34.304 --> 00:58:35.364
is the S&P.

00:58:35.674 --> 00:58:36.504
That was the lost

00:58:36.513 --> 00:58:37.604
decade in the S&P

00:58:37.604 --> 00:58:38.104
when it earned

00:58:38.104 --> 00:58:39.854
zero or less over

00:58:39.854 --> 00:58:40.763
10 years on an

00:58:40.783 --> 00:58:41.743
annualized basis.

00:58:42.153 --> 00:58:43.443
So you c- you

00:58:43.443 --> 00:58:44.283
don't have to guess

00:58:44.283 --> 00:58:45.354
about the effect

00:58:45.873 --> 00:58:46.513
of a decline.

00:58:46.524 --> 00:58:47.283
Now, even without

00:58:47.283 --> 00:58:48.243
a collapse, just

00:58:48.244 --> 00:58:49.083
a decline in the

00:58:49.083 --> 00:58:51.163
value, and then, but

00:58:51.163 --> 00:58:52.293
then it brings into

00:58:52.723 --> 00:58:53.864
question the whole

00:58:54.524 --> 00:58:55.603
dollar dominance

00:58:55.884 --> 00:58:56.643
and everything

00:58:56.983 --> 00:58:57.793
that supports it

00:58:58.094 --> 00:58:58.504
that we've been

00:58:58.504 --> 00:58:59.043
mentioning throughout

00:58:59.043 --> 00:58:59.623
this discussion.

00:59:00.823 --> 00:59:02.213
So you can't have,

00:59:02.223 --> 00:59:02.963
like you cannot

00:59:02.963 --> 00:59:04.064
have, continue to

00:59:04.064 --> 00:59:05.373
do, have the dollar

00:59:05.373 --> 00:59:06.303
dominant system

00:59:06.333 --> 00:59:07.014
and the strength

00:59:07.024 --> 00:59:08.633
of the dollar-

00:59:10.940 --> 00:59:11.660
Unless  I guess

00:59:11.660 --> 00:59:12.210
there's a  what

00:59:12.210 --> 00:59:12.670
I would say is

00:59:13.060 --> 00:59:14.220
you're reducing the

00:59:14.230 --> 00:59:15.160
ability to deliver

00:59:15.160 --> 00:59:15.900
on the promise of

00:59:15.900 --> 00:59:17.390
the dollar as the-

00:59:17.930 --> 00:59:19.020
As the ba- the bases

00:59:19.020 --> 00:59:19.650
in the Middle East

00:59:19.650 --> 00:59:20.440
get attacked and

00:59:20.440 --> 00:59:21.069
things you can't

00:59:21.080 --> 00:59:22.380
protect the Middle

00:59:22.380 --> 00:59:23.259
East, like you said,

00:59:23.620 --> 00:59:24.710
wha- what are the

00:59:24.710 --> 00:59:25.739
implications of that,

00:59:26.460 --> 00:59:27.480
and can the dollar

00:59:27.480 --> 00:59:29.830
stay strong enough

00:59:30.000 --> 00:59:30.579
that the dollar

00:59:30.580 --> 00:59:31.460
system can keep

00:59:32.019 --> 00:59:32.990
being da- dangerous

00:59:32.990 --> 00:59:33.470
and dominant?

00:59:34.370 --> 00:59:34.869
There's something

00:59:34.869 --> 00:59:36.069
else, too, and that

00:59:36.069 --> 00:59:38.100
is if the Chinese

00:59:38.100 --> 00:59:38.849
are rolling out an

00:59:38.859 --> 00:59:40.490
open source AI that

00:59:40.529 --> 00:59:42.079
can decentralize and

00:59:42.080 --> 00:59:44.139
move everywhere with

00:59:44.139 --> 00:59:45.439
small data center

00:59:45.440 --> 00:59:46.340
footprint, in other

00:59:46.340 --> 00:59:46.809
words, you could

00:59:46.819 --> 00:59:47.989
have a server or

00:59:47.990 --> 00:59:48.680
equipment in your

00:59:48.680 --> 00:59:49.499
own home to have

00:59:49.499 --> 00:59:50.730
your own data, right?

00:59:51.139 --> 00:59:51.519
Yeah.

00:59:52.039 --> 00:59:52.829
If they're going

00:59:52.830 --> 00:59:53.989
to push that model

00:59:53.990 --> 00:59:54.540
and it's out of

00:59:54.540 --> 00:59:57.169
control  the Mark

00:59:57.169 --> 00:59:58.640
Andreessan's 90%

00:59:58.650 --> 01:00:02.319
depends on  enormous

01:00:02.319 --> 01:00:03.370
dominance, including

01:00:03.370 --> 01:00:04.419
data dominance.

01:00:04.539 --> 01:00:05.429
So I think all the

01:00:05.429 --> 01:00:06.199
data centers in the

01:00:06.199 --> 01:00:07.549
United States  are

01:00:07.549 --> 01:00:08.369
to get the, collect

01:00:08.369 --> 01:00:10.089
the data for a global

01:00:10.100 --> 01:00:11.470
dollar system, right?

01:00:12.479 --> 01:00:15.509
And  but  you

01:00:15.509 --> 01:00:17.859
need dominance  in

01:00:17.859 --> 01:00:19.339
your AI and in

01:00:19.340 --> 01:00:20.389
your technology.

01:00:20.749 --> 01:00:21.139
Yeah.

01:00:21.769 --> 01:00:22.549
And you need

01:00:22.569 --> 01:00:23.420
dominance in your

01:00:23.420 --> 01:00:24.500
military, and if

01:00:24.500 --> 01:00:25.489
you have neither,

01:00:25.499 --> 01:00:26.299
how do you do it?

01:00:27.259 --> 01:00:28.439
And it's so expensive

01:00:28.459 --> 01:00:29.889
to do the, the big,

01:00:29.900 --> 01:00:31.300
the hyperscale and

01:00:31.300 --> 01:00:32.810
the big data way

01:00:32.810 --> 01:00:33.370
of collecting it

01:00:33.379 --> 01:00:34.070
up for the control

01:00:34.070 --> 01:00:35.619
grid is so much

01:00:35.620 --> 01:00:36.440
more expensive

01:00:36.440 --> 01:00:37.399
and harder to do.

01:00:37.449 --> 01:00:38.339
All the battles

01:00:38.339 --> 01:00:39.649
at every township

01:00:39.650 --> 01:00:41.239
meeting about an AI

01:00:41.279 --> 01:00:42.310
center and all this,

01:00:42.519 --> 01:00:43.540
whereas if you just

01:00:43.540 --> 01:00:45.520
made decentralized

01:00:46.109 --> 01:00:47.389
and didn't have

01:00:47.650 --> 01:00:49.369
global  widespread

01:00:49.370 --> 01:00:50.109
high-level control

01:00:50.109 --> 01:00:51.340
over the data, it

01:00:51.340 --> 01:00:52.569
would be much more

01:00:53.179 --> 01:00:54.379
effective to me,

01:00:54.389 --> 01:00:54.949
but you'd have to

01:00:54.959 --> 01:00:55.869
give up control.

01:00:56.449 --> 01:00:57.170
So here's the

01:00:57.179 --> 01:00:58.300
political conundrum.

01:00:58.830 --> 01:01:01.039
If I'm leading the

01:01:01.039 --> 01:01:03.299
charge, I need those

01:01:03.300 --> 01:01:04.319
data centers to

01:01:04.319 --> 01:01:05.200
stay control of the

01:01:05.200 --> 01:01:06.709
dollar system that

01:01:06.709 --> 01:01:07.819
gives me the subsidy

01:01:07.819 --> 01:01:09.149
I need to buy your

01:01:09.150 --> 01:01:10.149
political consent

01:01:10.159 --> 01:01:10.839
traditionally.

01:01:10.889 --> 01:01:11.479
We're back to the

01:01:11.479 --> 01:01:12.509
red propl- red

01:01:12.509 --> 01:01:13.289
button problem.

01:01:13.799 --> 01:01:14.690
So if you're trying

01:01:14.690 --> 01:01:15.599
to stop me from

01:01:15.599 --> 01:01:16.229
doing the data

01:01:16.229 --> 01:01:17.119
centers I need to

01:01:17.120 --> 01:01:18.129
get you the subsidy

01:01:18.129 --> 01:01:18.939
that you require

01:01:18.940 --> 01:01:19.429
from me 'cause

01:01:19.440 --> 01:01:20.109
you don't want the

01:01:20.109 --> 01:01:21.070
red button pushed-

01:01:21.779 --> 01:01:22.539
You could see why

01:01:22.550 --> 01:01:23.390
the politicians

01:01:23.390 --> 01:01:24.540
would get very angry.

01:01:24.949 --> 01:01:25.129
Yeah.

01:01:27.080 --> 01:01:27.799
And I guess, it,

01:01:28.330 --> 01:01:28.969
when d- does the

01:01:28.969 --> 01:01:29.970
money ever run out?

01:01:30.029 --> 01:01:30.429
Do they have

01:01:30.509 --> 01:01:31.699
unlimited money

01:01:32.300 --> 01:01:33.379
to just force it

01:01:33.380 --> 01:01:34.829
through, or do they

01:01:34.880 --> 01:01:36.290
ever reach the end

01:01:36.290 --> 01:01:38.099
of their capacity

01:01:38.109 --> 01:01:39.869
to engineer things?

01:01:40.770 --> 01:01:42.119
Again, you know

01:01:42.119 --> 01:01:42.789
I hate to say

01:01:42.789 --> 01:01:43.749
this, 'cause I  I

01:01:43.749 --> 01:01:44.349
looked at this

01:01:44.349 --> 01:01:45.560
hard in the '90s.

01:01:45.990 --> 01:01:46.899
You had two choices.

01:01:47.339 --> 01:01:48.359
You could transition

01:01:48.359 --> 01:01:49.099
the model to a

01:01:49.099 --> 01:01:50.049
win-win model.

01:01:51.199 --> 01:01:52.369
Or you could

01:01:52.369 --> 01:01:53.139
depopulate.

01:01:53.349 --> 01:01:53.659
Yeah.

01:01:53.819 --> 01:01:54.289
You could go

01:01:54.289 --> 01:01:55.019
to control with

01:01:55.020 --> 01:01:55.750
depopulation

01:01:58.222 --> 01:01:58.762
That's it.

01:01:58.862 --> 01:01:59.162
Yes.

01:01:59.842 --> 01:02:00.742
Okay, and on

01:02:00.742 --> 01:02:01.412
that cheery

01:02:01.412 --> 01:02:01.922
note- … let's

01:02:01.922 --> 01:02:03.212
look, let's turn

01:02:03.372 --> 01:02:04.492
to the next slide.

01:02:05.322 --> 01:02:06.112
It's really funny.

01:02:06.112 --> 01:02:06.812
I'll never forget

01:02:06.812 --> 01:02:07.312
this article.

01:02:07.312 --> 01:02:07.901
I think I told

01:02:07.901 --> 01:02:08.232
you about it.

01:02:08.232 --> 01:02:09.002
It was about five

01:02:09.002 --> 01:02:09.852
years ago where

01:02:10.272 --> 01:02:11.431
somebody was pointing

01:02:11.432 --> 01:02:12.442
out to this Chinese

01:02:12.442 --> 01:02:13.401
leader that the

01:02:14.501 --> 01:02:15.441
that the S&P was

01:02:15.452 --> 01:02:16.172
outperforming the

01:02:16.172 --> 01:02:17.051
Chinese market,

01:02:17.081 --> 01:02:18.712
and the Chinese

01:02:18.712 --> 01:02:19.571
letters, leader

01:02:19.572 --> 01:02:20.182
said two things.

01:02:20.182 --> 01:02:20.831
He said, "First of

01:02:20.831 --> 01:02:21.251
all, you have to

01:02:21.251 --> 01:02:21.982
understand, given

01:02:21.982 --> 01:02:23.062
how many people own

01:02:23.062 --> 01:02:24.112
stocks in China,

01:02:24.511 --> 01:02:25.431
what we care about

01:02:25.431 --> 01:02:26.631
is the price of pork,

01:02:26.661 --> 01:02:27.451
not the price of

01:02:27.452 --> 01:02:28.281
the stock market."

01:02:28.552 --> 01:02:29.381
That's number one.

01:02:29.482 --> 01:02:29.782
Yeah.

01:02:29.802 --> 01:02:30.672
But the second thing

01:02:30.672 --> 01:02:32.981
is, "Our job in China

01:02:32.981 --> 01:02:34.091
is to create great

01:02:34.091 --> 01:02:36.431
products. Your job

01:02:36.441 --> 01:02:37.512
is to create high

01:02:37.521 --> 01:02:39.032
stock prices, which

01:02:39.062 --> 01:02:40.841
means we're looking

01:02:40.841 --> 01:02:42.331
to innovate and sell

01:02:42.341 --> 01:02:43.482
globally. You're

01:02:43.482 --> 01:02:45.271
looking to engineer

01:02:45.271 --> 01:02:46.301
monopolies- Yeah

01:02:46.361 --> 01:02:47.131
… with government

01:02:47.132 --> 01:02:48.112
money," right?

01:02:49.656 --> 01:02:50.816
That was the message

01:02:50.966 --> 01:02:51.796
I think the main

01:02:51.796 --> 01:02:52.616
difference in this

01:02:52.626 --> 01:02:53.586
is I think our sh-

01:02:53.616 --> 01:02:54.356
our thinking in

01:02:54.356 --> 01:02:56.056
America is about two

01:02:56.056 --> 01:02:57.986
weeks long  into the

01:02:57.986 --> 01:02:58.886
future, and in China

01:02:58.886 --> 01:02:59.855
it's about 100 years

01:02:59.856 --> 01:03:00.416
into the future.

01:03:02.386 --> 01:03:03.546
China and Iran

01:03:04.285 --> 01:03:04.875
and Russia,

01:03:04.926 --> 01:03:05.766
these are ancient

01:03:05.766 --> 01:03:06.725
civilizations.

01:03:06.755 --> 01:03:07.085
Yeah.

01:03:07.636 --> 01:03:08.186
We're not.

01:03:08.396 --> 01:03:08.676
Yeah.

01:03:09.515 --> 01:03:10.956
Okay, so here we get

01:03:10.966 --> 01:03:12.506
into our old friend,

01:03:12.506 --> 01:03:13.385
private equity and

01:03:13.386 --> 01:03:14.175
private credit.

01:03:14.216 --> 01:03:15.655
And for the last

01:03:15.656 --> 01:03:16.445
quarter since

01:03:16.445 --> 01:03:17.146
we talked last,

01:03:17.165 --> 01:03:18.655
Tim, it just gets

01:03:18.656 --> 01:03:19.315
worse and worse.

01:03:19.316 --> 01:03:20.435
So I wanna show you

01:03:20.865 --> 01:03:22.305
this video f- we

01:03:22.306 --> 01:03:23.176
used in the second

01:03:23.205 --> 01:03:24.815
quarter of  you

01:03:24.815 --> 01:03:25.445
know I'm a big

01:03:25.455 --> 01:03:26.675
Jeff Gundlach fan.

01:03:26.725 --> 01:03:28.145
And here's Jeff

01:03:28.166 --> 01:03:29.166
Gundlach talking

01:03:29.166 --> 01:03:30.755
about private equity

01:03:30.756 --> 01:03:31.615
and private credit.

01:03:31.615 --> 01:03:32.435
So let's play that.

01:03:32.565 --> 01:03:34.996
I really  first

01:03:35.045 --> 01:03:35.995
started thinking

01:03:35.995 --> 01:03:36.555
that something was

01:03:36.556 --> 01:03:38.155
changing one year

01:03:38.155 --> 01:03:39.236
ago, just about

01:03:39.275 --> 01:03:40.145
exactly one year

01:03:40.146 --> 01:03:41.206
ago, when I was

01:03:41.206 --> 01:03:42.805
speaking on a p-  at

01:03:42.806 --> 01:03:43.765
a conference here

01:03:43.806 --> 01:03:44.765
in Los Angeles.

01:03:45.166 --> 01:03:46.315
And f- before my

01:03:46.326 --> 01:03:47.315
fireside chat,

01:03:47.365 --> 01:03:48.095
the group before

01:03:48.095 --> 01:03:48.666
me was a bunch

01:03:48.666 --> 01:03:49.586
of private credit

01:03:49.586 --> 01:03:50.645
people, and they

01:03:50.646 --> 01:03:51.555
were senior people

01:03:51.576 --> 01:03:52.605
from the big firms.

01:03:53.095 --> 01:03:54.015
And I was listening

01:03:54.015 --> 01:03:55.015
to them, and I got

01:03:55.015 --> 01:03:56.416
this eerie feeling

01:03:56.436 --> 01:03:57.815
that I had heard the,

01:03:58.055 --> 01:03:59.505
the, the tone change.

01:03:59.966 --> 01:04:00.776
Sounded a lot

01:04:00.776 --> 01:04:01.665
like where we were

01:04:01.675 --> 01:04:03.355
going pre-f- global

01:04:03.355 --> 01:04:04.355
financial crisis,

01:04:04.686 --> 01:04:05.365
where suddenly

01:04:05.375 --> 01:04:06.146
everyone's was…

01:04:06.396 --> 01:04:06.955
E- everything looked

01:04:07.085 --> 01:04:08.145
absolutely fantastic,

01:04:08.165 --> 01:04:08.505
and then all of a

01:04:08.506 --> 01:04:10.015
sudden you started

01:04:10.015 --> 01:04:10.855
to hear different

01:04:10.855 --> 01:04:11.555
language being

01:04:11.555 --> 01:04:12.605
used on the panels.

01:04:12.655 --> 01:04:13.266
And in this panel

01:04:13.266 --> 01:04:14.056
they started talking

01:04:14.056 --> 01:04:15.185
about tension

01:04:15.576 --> 01:04:16.165
between different

01:04:16.165 --> 01:04:17.255
private credit firms.

01:04:17.576 --> 01:04:18.275
They started talking

01:04:18.275 --> 01:04:19.235
about the need

01:04:19.245 --> 01:04:20.165
to in- increase

01:04:20.165 --> 01:04:21.155
their runway.

01:04:21.796 --> 01:04:22.406
They were basically

01:04:22.406 --> 01:04:22.835
admitting that

01:04:22.835 --> 01:04:23.086
they couldn't

01:04:23.125 --> 01:04:23.875
liquidate any of

01:04:23.875 --> 01:04:24.736
their investments.

01:04:25.085 --> 01:04:25.906
And I  thought, "Wow

01:04:26.375 --> 01:04:26.955
this is starting to

01:04:26.955 --> 01:04:27.655
sound like they're

01:04:27.655 --> 01:04:28.385
not as confident as

01:04:28.385 --> 01:04:29.056
they used to be."

01:04:29.595 --> 01:04:31.015
And then early last

01:04:31.015 --> 01:04:31.885
year, in the first

01:04:31.885 --> 01:04:32.845
quarter, I had a big

01:04:32.845 --> 01:04:33.675
insurance company

01:04:33.675 --> 01:04:34.506
client come to me.

01:04:35.405 --> 01:04:36.136
We managed money

01:04:36.136 --> 01:04:36.636
for them, but

01:04:36.636 --> 01:04:37.775
they, like most

01:04:37.775 --> 01:04:38.596
insurance companies,

01:04:38.596 --> 01:04:39.205
they're drowning

01:04:39.205 --> 01:04:39.985
in private credit

01:04:39.985 --> 01:04:40.755
and private equity.

01:04:40.985 --> 01:04:41.235
They've got

01:04:41.265 --> 01:04:41.815
tons of it.

01:04:42.055 --> 01:04:42.715
And this firm

01:04:42.716 --> 01:04:43.296
has h- had a

01:04:43.296 --> 01:04:44.285
lot of managers.

01:04:44.375 --> 01:04:45.405
And he told me, he

01:04:45.425 --> 01:04:46.025
just shared with

01:04:46.025 --> 01:04:47.065
me unsolicited,

01:04:47.365 --> 01:04:47.846
that he had got an

01:04:47.855 --> 01:04:49.045
evaluation report

01:04:49.076 --> 01:04:49.855
for I think year-end

01:04:49.855 --> 01:04:51.945
2024, and that eight

01:04:51.945 --> 01:04:52.755
of the managers

01:04:52.785 --> 01:04:53.756
owned exactly the

01:04:53.756 --> 01:04:54.475
same position.

01:04:55.015 --> 01:04:56.245
Ex- exactly…   If

01:04:56.245 --> 01:04:57.125
it were a public

01:04:57.145 --> 01:04:57.535
thing, it would've

01:04:57.535 --> 01:04:57.915
been the same

01:04:57.935 --> 01:04:58.825
CUSIP, literally.

01:04:59.235 --> 01:05:00.185
So it was exactly

01:05:00.185 --> 01:05:00.886
the same loan.

01:05:01.095 --> 01:05:01.725
And he said, "I was

01:05:01.726 --> 01:05:02.505
really sh- sort of

01:05:02.506 --> 01:05:03.705
surprised  getting

01:05:03.705 --> 01:05:05.246
concerned because one

01:05:05.265 --> 01:05:06.136
firm had it marked

01:05:06.136 --> 01:05:08.485
at 95, and the f-

01:05:08.485 --> 01:05:09.455
and one of the firms

01:05:09.455 --> 01:05:09.955
at the other end

01:05:09.955 --> 01:05:10.655
of the spectrum had

01:05:10.655 --> 01:05:11.876
it marked at 8."

01:05:13.815 --> 01:05:15.015
Can you believe that?

01:05:15.715 --> 01:05:16.025
Yeah.

01:05:18.132 --> 01:05:19.392
That is h- just,

01:05:19.642 --> 01:05:20.042
I, first of all,

01:05:20.042 --> 01:05:20.902
I think, like I

01:05:20.912 --> 01:05:22.062
said earlier to you

01:05:22.082 --> 01:05:24.152
before, that it takes

01:05:24.152 --> 01:05:25.042
somebody at Jeffrey

01:05:25.042 --> 01:05:25.932
Gundlach's level

01:05:26.321 --> 01:05:27.162
to be able to have

01:05:27.162 --> 01:05:28.072
the visibility into

01:05:28.072 --> 01:05:29.352
that to see it, and

01:05:29.352 --> 01:05:30.152
then to share it.

01:05:31.651 --> 01:05:32.491
So that is

01:05:32.492 --> 01:05:33.122
shocking enough.

01:05:33.132 --> 01:05:34.241
But then when you put

01:05:34.242 --> 01:05:34.852
on your slide there

01:05:34.852 --> 01:05:35.751
the side letters, I

01:05:35.752 --> 01:05:36.561
wasn't even aware of

01:05:36.561 --> 01:05:37.232
side letters until

01:05:37.232 --> 01:05:37.761
I watched Money and

01:05:37.791 --> 01:05:38.411
Markets with Jon

01:05:38.422 --> 01:05:39.132
Titus, with you.

01:05:40.192 --> 01:05:40.841
Side letters

01:05:40.871 --> 01:05:41.891
is ridiculous.

01:05:41.942 --> 01:05:44.122
So but it just from

01:05:44.122 --> 01:05:45.411
top to bottom, to

01:05:45.412 --> 01:05:46.412
me, is uninvestable.

01:05:47.471 --> 01:05:49.831
And    I'm told

01:05:49.872 --> 01:05:50.411
that they're good

01:05:50.411 --> 01:05:51.091
private equity

01:05:51.091 --> 01:05:52.402
firms, but you're

01:05:52.402 --> 01:05:54.401
at a point where the

01:05:54.401 --> 01:05:55.762
whole industry is so

01:05:55.762 --> 01:05:57.312
corrupt and so out of

01:05:57.312 --> 01:06:00.091
control  so far over

01:06:00.091 --> 01:06:01.442
the line of any sort

01:06:01.442 --> 01:06:02.861
of investment logic.

01:06:03.242 --> 01:06:03.672
It's really

01:06:03.672 --> 01:06:04.551
become fraudulent.

01:06:04.551 --> 01:06:05.471
It's become a fraud.

01:06:05.611 --> 01:06:06.261
Yes.

01:06:06.841 --> 01:06:08.371
So  how do you

01:06:08.372 --> 01:06:09.152
differentiate

01:06:09.161 --> 01:06:10.021
the fraudsters

01:06:10.032 --> 01:06:11.762
from  the, the-

01:06:11.762 --> 01:06:12.161
It's not

01:06:12.211 --> 01:06:12.371
worth the

01:06:12.371 --> 01:06:13.122
time to do it

01:06:13.651 --> 01:06:14.191
…  it's not worth

01:06:14.201 --> 01:06:14.872
the time to do it.

01:06:14.872 --> 01:06:15.731
That's the problem.

01:06:15.742 --> 01:06:15.762
Yeah.

01:06:16.711 --> 01:06:17.511
And this is why

01:06:17.512 --> 01:06:18.521
you need a standard

01:06:18.521 --> 01:06:19.361
of liquidity.

01:06:20.051 --> 01:06:20.831
And I'm not saying

01:06:20.832 --> 01:06:21.682
the public markets

01:06:21.931 --> 01:06:24.842
are perfect  but

01:06:24.961 --> 01:06:26.731
having  a price that

01:06:26.732 --> 01:06:28.072
you can transact at

01:06:28.122 --> 01:06:29.312
in an open market

01:06:29.351 --> 01:06:30.661
provides some kind

01:06:30.662 --> 01:06:34.862
of at least view on

01:06:34.862 --> 01:06:35.772
what the worth is,

01:06:35.802 --> 01:06:36.691
what the value is.

01:06:36.692 --> 01:06:37.212
Yeah, at least

01:06:37.212 --> 01:06:38.062
you have a daily

01:06:38.062 --> 01:06:39.651
recognition of price

01:06:39.881 --> 01:06:41.431
versus a 10-year

01:06:41.762 --> 01:06:42.621
mark to market.

01:06:42.821 --> 01:06:43.261
I don't have to

01:06:43.262 --> 01:06:44.221
mark to market this

01:06:44.262 --> 01:06:45.142
investment for 10

01:06:45.142 --> 01:06:46.391
years, which is crazy

01:06:49.166 --> 01:06:49.786
If you look at the

01:06:49.786 --> 01:06:50.496
performance, the

01:06:50.496 --> 01:06:51.526
whole idea was if we

01:06:51.526 --> 01:06:52.756
accept illiquidity,

01:06:52.786 --> 01:06:53.456
then we could get a

01:06:53.456 --> 01:06:54.276
higher performance,

01:06:54.276 --> 01:06:55.156
and it's not turning

01:06:55.156 --> 01:06:55.796
out to be true.

01:06:55.806 --> 01:06:56.706
Quite the opposite.

01:06:56.746 --> 01:06:57.066
Yeah.

01:07:01.366 --> 01:07:02.596
So this is a serious

01:07:02.596 --> 01:07:03.365
situation, and we'll

01:07:03.366 --> 01:07:04.776
get… When we talk

01:07:04.786 --> 01:07:05.796
about allocations,

01:07:05.796 --> 01:07:06.626
we'll get to what you

01:07:06.626 --> 01:07:07.825
do about this because

01:07:08.186 --> 01:07:09.486
unfortunately, as

01:07:09.486 --> 01:07:10.795
we described with

01:07:10.795 --> 01:07:11.506
our interview with

01:07:11.506 --> 01:07:12.395
Tiffany Cianci

01:07:12.395 --> 01:07:13.286
during the quar- the

01:07:13.286 --> 01:07:14.345
last second quarter

01:07:15.526 --> 01:07:16.316
the Department of

01:07:16.316 --> 01:07:17.606
Labor is now moving

01:07:17.606 --> 01:07:18.565
forward on a proposed

01:07:18.565 --> 01:07:19.326
rulemaking that

01:07:19.326 --> 01:07:21.255
says that if your

01:07:21.256 --> 01:07:24.505
401manager  loses

01:07:24.526 --> 01:07:27.095
money in  alternative

01:07:27.096 --> 01:07:28.296
investments, private

01:07:28.456 --> 01:07:29.825
equity, crypto,

01:07:29.875 --> 01:07:30.695
private credit-

01:07:30.735 --> 01:07:30.985
Yep

01:07:31.796 --> 01:07:32.465
They can't be…

01:07:32.565 --> 01:07:33.366
Essentially they're

01:07:33.366 --> 01:07:34.535
free from liability.

01:07:34.936 --> 01:07:35.595
It's a get out of

01:07:35.596 --> 01:07:36.456
jail free card.

01:07:37.186 --> 01:07:38.155
Which is a violation

01:07:38.155 --> 01:07:39.066
of a standard

01:07:39.066 --> 01:07:39.586
called the prudent

01:07:39.586 --> 01:07:40.465
investor rule.

01:07:40.605 --> 01:07:41.605
It's a vi- violation

01:07:41.605 --> 01:07:41.775
of their pro-

01:07:41.776 --> 01:07:43.335
fiduciary duty,

01:07:43.635 --> 01:07:44.695
and it's consistent

01:07:44.695 --> 01:07:46.305
with the recent

01:07:46.305 --> 01:07:47.195
liability shield

01:07:47.235 --> 01:07:50.105
for gly- glyphosate

01:07:50.105 --> 01:07:50.895
that was advoc-  it

01:07:50.895 --> 01:07:52.265
was advocated for by

01:07:52.265 --> 01:07:53.145
the US Department of

01:07:53.145 --> 01:07:54.125
Justice and decided

01:07:54.125 --> 01:07:54.805
by the Supreme Court.

01:07:55.505 --> 01:07:56.646
So it's just the,

01:07:56.676 --> 01:07:57.606
the lia- the lack

01:07:57.606 --> 01:07:59.075
of liability is so

01:07:59.075 --> 01:08:00.435
far gone from any

01:08:00.575 --> 01:08:02.715
human standard that-

01:08:04.265 --> 01:08:04.665
Like I don't know

01:08:04.666 --> 01:08:05.255
what we're doing.

01:08:05.746 --> 01:08:06.556
It, I don't…  It

01:08:06.556 --> 01:08:07.306
just is beyond.

01:08:08.790 --> 01:08:09.570
Here's the thing.

01:08:10.090 --> 01:08:11.310
The only company

01:08:11.310 --> 01:08:12.170
you can trust is

01:08:12.170 --> 01:08:13.280
a company you have

01:08:13.280 --> 01:08:14.370
due diligenced and

01:08:14.370 --> 01:08:15.160
you are confident

01:08:15.160 --> 01:08:15.870
you can trust.

01:08:16.190 --> 01:08:16.790
You have to

01:08:16.790 --> 01:08:18.580
assume  30 years

01:08:18.580 --> 01:08:19.160
ago, you could

01:08:19.160 --> 01:08:19.900
assume everybody

01:08:19.900 --> 01:08:20.610
was basically

01:08:20.610 --> 01:08:21.390
honest, right?

01:08:21.399 --> 01:08:21.419
Yeah.

01:08:21.430 --> 01:08:21.950
Now you have to

01:08:21.950 --> 01:08:22.770
assume everybody's

01:08:22.770 --> 01:08:23.489
criminal unless

01:08:23.490 --> 01:08:23.989
you've proven

01:08:23.990 --> 01:08:24.410
otherwise.

01:08:24.840 --> 01:08:25.969
And it's a very

01:08:25.969 --> 01:08:27.860
time-consuming fact.

01:08:27.940 --> 01:08:28.210
Yeah.

01:08:30.449 --> 01:08:31.509
There's reason to

01:08:31.520 --> 01:08:32.360
be very careful.

01:08:33.330 --> 01:08:34.120
I'll just mention

01:08:34.120 --> 01:08:34.730
for those of you

01:08:34.740 --> 01:08:35.429
who didn't hear that

01:08:35.449 --> 01:08:36.219
episode of Money and

01:08:36.219 --> 01:08:37.160
Market, side letters

01:08:37.160 --> 01:08:39.259
is when a firm writes

01:08:39.260 --> 01:08:40.119
a side letter to

01:08:40.119 --> 01:08:41.870
an investor that

01:08:41.870 --> 01:08:43.329
essentially promises

01:08:43.329 --> 01:08:43.950
them things that

01:08:43.979 --> 01:08:44.969
the other investors

01:08:44.970 --> 01:08:47.249
aren't giving or

01:08:48.750 --> 01:08:52.049
provides     comfort

01:08:52.059 --> 01:08:54.139
in a way that they

01:08:54.139 --> 01:08:56.080
can get around  all

01:08:56.080 --> 01:08:56.919
sorts of problems

01:08:56.919 --> 01:08:57.809
with their auditors

01:08:57.809 --> 01:08:58.499
or other stuff.

01:08:58.739 --> 01:08:59.719
It's just basically

01:08:59.719 --> 01:09:00.379
an agreement to

01:09:00.389 --> 01:09:01.380
break the rules.

01:09:01.569 --> 01:09:02.340
But it's breaking

01:09:02.340 --> 01:09:03.779
the rules within the

01:09:03.779 --> 01:09:05.600
same fund for some

01:09:05.600 --> 01:09:06.559
group within the same

01:09:06.569 --> 01:09:07.559
fund versus others.

01:09:08.719 --> 01:09:09.509
In the same exact

01:09:09.509 --> 01:09:10.120
investment fund.

01:09:11.090 --> 01:09:12.709
So  I can give

01:09:12.749 --> 01:09:13.369
the preferred

01:09:13.369 --> 01:09:14.860
investors one deal,

01:09:15.340 --> 01:09:16.199
and then your 401a

01:09:16.959 --> 01:09:17.910
much worse deal-

01:09:17.969 --> 01:09:18.189
And

01:09:18.189 --> 01:09:18.640
not tell

01:09:18.640 --> 01:09:19.260
anybody about

01:09:19.260 --> 01:09:19.369
it

01:09:19.369 --> 01:09:19.520
with side letters.

01:09:19.520 --> 01:09:20.479
And not tell anybody

01:09:22.079 --> 01:09:23.420
it's basically crime.

01:09:23.469 --> 01:09:24.429
And here's- It

01:09:24.429 --> 01:09:24.879
is.

01:09:24.879 --> 01:09:25.359
Yeah, it is.

01:09:25.359 --> 01:09:26.869
T- in 2024, the SEC

01:09:26.869 --> 01:09:28.179
under Gary Gensler

01:09:28.209 --> 01:09:29.829
tried to stop it, and

01:09:29.840 --> 01:09:30.649
they were overruled

01:09:30.660 --> 01:09:31.459
by the courts.

01:09:31.549 --> 01:09:31.869
Yeah.

01:09:32.459 --> 01:09:33.289
It's unbelievable.

01:09:33.910 --> 01:09:35.169
Okay, next slide.

01:09:35.439 --> 01:09:36.439
So one of the big

01:09:36.450 --> 01:09:37.359
issues that we're

01:09:37.359 --> 01:09:38.659
all thinking a lot

01:09:38.660 --> 01:09:41.290
about is,  Oh, so

01:09:41.329 --> 01:09:43.019
h- here's just shows

01:09:43.020 --> 01:09:44.229
you Blackstone and

01:09:44.240 --> 01:09:46.169
KKR versus the S&P.

01:09:46.689 --> 01:09:47.900
So the big bulge

01:09:47.900 --> 01:09:48.539
that happened in

01:09:48.539 --> 01:09:49.439
recent years are

01:09:49.439 --> 01:09:50.639
Blackstone and KKR

01:09:50.649 --> 01:09:51.730
going way, way up

01:09:51.730 --> 01:09:52.559
and outperforming

01:09:52.569 --> 01:09:53.459
against the S&P,

01:09:53.459 --> 01:09:54.409
which is in green,

01:09:54.739 --> 01:09:56.129
and now coming down,

01:09:56.160 --> 01:09:57.100
underperforming.

01:09:57.100 --> 01:09:58.289
And-

01:09:58.289 --> 01:09:58.589
And

01:09:58.589 --> 01:09:58.913
I think that's

01:09:58.913 --> 01:09:59.679
some of the market

01:09:59.679 --> 01:10:00.499
reflection of the

01:10:00.499 --> 01:10:01.290
different stories

01:10:01.290 --> 01:10:02.270
that come out when

01:10:02.270 --> 01:10:03.079
Jeffrey Gundlach

01:10:03.099 --> 01:10:04.270
does a, a video or

01:10:04.270 --> 01:10:06.309
when Harvard and Yale

01:10:06.309 --> 01:10:07.069
sell out because of

01:10:07.069 --> 01:10:07.909
lack of liquidity.

01:10:07.919 --> 01:10:08.849
Those public

01:10:09.029 --> 01:10:10.019
recognitions have

01:10:10.020 --> 01:10:10.979
an eve- a, an effect

01:10:10.979 --> 01:10:11.739
on the stock price.

01:10:12.169 --> 01:10:12.509
Yeah.

01:10:12.880 --> 01:10:14.689
So the stock market's

01:10:14.689 --> 01:10:16.659
telling you  they-

01:10:17.806 --> 01:10:19.495
They rolled up a lot

01:10:19.625 --> 01:10:20.726
of companies in the

01:10:20.726 --> 01:10:22.236
economy doing great

01:10:22.236 --> 01:10:23.665
harm to the economy,

01:10:23.705 --> 01:10:25.156
and their stocks

01:10:25.156 --> 01:10:26.175
had a glory day,

01:10:26.175 --> 01:10:28.186
and now, you know-

01:10:28.326 --> 01:10:28.846
Coming back.

01:10:29.425 --> 01:10:29.846
Yeah.

01:10:30.255 --> 01:10:31.005
Chickens are coming

01:10:31.005 --> 01:10:31.686
home to roost.

01:10:31.715 --> 01:10:32.755
Okay, next slide.

01:10:33.675 --> 01:10:34.885
Okay, so we're all

01:10:35.015 --> 01:10:36.285
dealing with the f-

01:10:36.295 --> 01:10:37.885
fear of inflation and

01:10:37.885 --> 01:10:38.875
deflation, and how

01:10:38.875 --> 01:10:39.745
do you manage them?

01:10:40.265 --> 01:10:41.106
So I just looked at

01:10:41.106 --> 01:10:42.085
a chart that Chinese

01:10:42.085 --> 01:10:43.435
real estate has now

01:10:44.665 --> 01:10:45.826
given up all the

01:10:45.826 --> 01:10:46.896
price gains that it's

01:10:46.896 --> 01:10:47.895
had from when China

01:10:47.905 --> 01:10:49.165
started to grow.

01:10:50.675 --> 01:10:51.826
And  cause you have

01:10:51.826 --> 01:10:52.825
a real property

01:10:52.826 --> 01:10:53.665
meltdown, and we

01:10:53.666 --> 01:10:54.436
talked about that

01:10:54.436 --> 01:10:56.025
in our interview

01:10:56.025 --> 01:10:56.946
with Carlos and

01:10:56.955 --> 01:10:58.735
Ed  on China, and

01:10:58.736 --> 01:10:59.656
then on the recent

01:10:59.656 --> 01:11:00.606
one on inflation.

01:11:00.625 --> 01:11:02.215
And then clearly

01:11:02.256 --> 01:11:03.576
AI and automation

01:11:03.576 --> 01:11:05.895
is gonna be  very

01:11:06.925 --> 01:11:06.965
deflationary and

01:11:09.695 --> 01:11:10.405
it's different

01:11:10.405 --> 01:11:11.975
sector to sector  but

01:11:11.975 --> 01:11:12.776
needless to say,

01:11:12.776 --> 01:11:13.695
automation can be

01:11:13.695 --> 01:11:14.005
very deflationary.

01:11:15.945 --> 01:11:16.595
But on the

01:11:16.595 --> 01:11:17.715
inflationary trends,

01:11:17.715 --> 01:11:18.615
we have the bubble

01:11:18.615 --> 01:11:19.325
machine that is

01:11:19.326 --> 01:11:20.455
gathering, which is

01:11:20.455 --> 01:11:21.665
quite impressive.

01:11:21.725 --> 01:11:22.085
Yeah.

01:11:22.386 --> 01:11:24.535
And    one of

01:11:24.535 --> 01:11:25.436
the big questions

01:11:25.436 --> 01:11:26.206
is what will

01:11:26.215 --> 01:11:27.505
monetary policy do?

01:11:27.505 --> 01:11:28.986
So we have a new guy

01:11:28.986 --> 01:11:30.215
at the Fed, Warsh,

01:11:30.905 --> 01:11:33.406
who is very  tech

01:11:33.465 --> 01:11:34.945
involved, if you

01:11:34.945 --> 01:11:35.775
look at his personal

01:11:35.776 --> 01:11:37.825
investments, and

01:11:37.835 --> 01:11:39.186
very close to the

01:11:39.186 --> 01:11:40.625
sort of APAC crowd.

01:11:41.306 --> 01:11:42.795
And he said he wants

01:11:42.795 --> 01:11:44.055
to redo how things

01:11:44.056 --> 01:11:44.906
work at the Fed, so

01:11:44.906 --> 01:11:45.496
he's brought in Marc

01:11:45.496 --> 01:11:46.625
Andreessen, he's

01:11:46.635 --> 01:11:47.295
brought in Merwyn

01:11:47.295 --> 01:11:48.206
King, former head

01:11:48.206 --> 01:11:50.016
of Bank of England,

01:11:50.026 --> 01:11:51.135
and re-looking

01:11:51.135 --> 01:11:51.745
at how they do

01:11:51.745 --> 01:11:52.515
their process.

01:11:52.725 --> 01:11:53.755
He was the guy,

01:11:53.755 --> 01:11:54.685
he was part of the

01:11:54.685 --> 01:11:56.335
bailout team, so

01:11:56.766 --> 01:11:58.336
very inflationary

01:11:58.346 --> 01:11:59.585
monetary policy.

01:12:00.166 --> 01:12:01.935
Basically handing

01:12:01.935 --> 01:12:03.899
out $29 trillion

01:12:03.899 --> 01:12:04.655
to stranger  or

01:12:04.675 --> 01:12:05.385
insiders.

01:12:07.195 --> 01:12:07.976
But he talks a

01:12:07.976 --> 01:12:08.686
good game about

01:12:08.686 --> 01:12:09.435
shrinking the Fed

01:12:09.445 --> 01:12:10.265
balance sheet, which

01:12:10.265 --> 01:12:10.915
you'd think would

01:12:10.925 --> 01:12:11.115
be deflationary

01:12:12.910 --> 01:12:13.650
I don't… The,

01:12:13.670 --> 01:12:15.280
the entire US or

01:12:15.290 --> 01:12:16.460
the entire Western

01:12:16.490 --> 01:12:18.220
central bank model

01:12:18.250 --> 01:12:19.540
prefers inflation

01:12:19.540 --> 01:12:20.590
versus deflation.

01:12:21.480 --> 01:12:22.900
Deflation i- in

01:12:22.900 --> 01:12:24.349
the US in ti- in

01:12:24.360 --> 01:12:25.150
the past, I always

01:12:25.150 --> 01:12:25.669
used to use the

01:12:25.669 --> 01:12:26.340
example of the Great

01:12:26.349 --> 01:12:27.480
Depression, which

01:12:27.480 --> 01:12:28.449
is deflationary,

01:12:28.930 --> 01:12:29.540
and that's where the

01:12:29.540 --> 01:12:30.050
case where you have

01:12:30.050 --> 01:12:31.699
$100,000 and the

01:12:31.709 --> 01:12:32.510
price of things goes

01:12:32.510 --> 01:12:33.179
down 'cause nobody

01:12:33.180 --> 01:12:34.019
has a job anymore,

01:12:34.019 --> 01:12:34.680
you can buy twice

01:12:34.680 --> 01:12:35.579
as many things.

01:12:36.199 --> 01:12:36.780
But then more

01:12:36.780 --> 01:12:37.740
recently it was

01:12:37.750 --> 01:12:38.879
the COVID lockdown

01:12:38.889 --> 01:12:39.889
was deflationary.

01:12:40.629 --> 01:12:41.880
As you pointed out,

01:12:41.880 --> 01:12:42.609
that Fauci could

01:12:42.609 --> 01:12:43.309
hit the red button

01:12:43.309 --> 01:12:44.019
for deflation or

01:12:44.019 --> 01:12:46.220
whatever, and  it

01:12:46.230 --> 01:12:46.840
brings a question

01:12:46.840 --> 01:12:47.429
like, which would

01:12:47.430 --> 01:12:48.369
you rather live in?

01:12:48.369 --> 01:12:48.670
But you don't

01:12:48.670 --> 01:12:49.159
have a choice.

01:12:49.169 --> 01:12:51.169
We're in America, and

01:12:51.829 --> 01:12:52.880
inflation, I think

01:12:53.049 --> 01:12:54.440
is the more likely

01:12:54.660 --> 01:12:56.349
trajectory given all

01:12:56.349 --> 01:12:58.070
of the orientation.

01:12:58.270 --> 01:12:59.019
If I had to guess

01:12:59.020 --> 01:13:00.169
about the output of

01:13:00.169 --> 01:13:01.389
that discussion at

01:13:01.389 --> 01:13:02.359
the Federal Reserve,

01:13:02.570 --> 01:13:03.380
it's gonna be some

01:13:03.380 --> 01:13:05.339
way to redefine

01:13:05.340 --> 01:13:06.800
inflation so that

01:13:06.800 --> 01:13:09.169
it's less noticeable

01:13:09.359 --> 01:13:09.949
or whatever.

01:13:09.949 --> 01:13:10.329
I don't know.

01:13:10.340 --> 01:13:10.800
We'll see.

01:13:11.849 --> 01:13:12.309
Here's what's

01:13:12.309 --> 01:13:12.759
interesting.

01:13:12.759 --> 01:13:13.530
If you compare

01:13:13.530 --> 01:13:14.860
the CPI to the

01:13:15.259 --> 01:13:16.319
Chapwood Index-

01:13:17.910 --> 01:13:19.829
The CPI radically

01:13:21.049 --> 01:13:23.419
under calculates what

01:13:23.420 --> 01:13:24.639
is being done to you.

01:13:24.869 --> 01:13:25.179
Yeah.

01:13:25.209 --> 01:13:25.939
If you own your

01:13:25.939 --> 01:13:27.089
own home already,

01:13:27.639 --> 01:13:28.579
then you're living

01:13:28.579 --> 01:13:30.279
with 12% Chapwood

01:13:30.279 --> 01:13:31.709
increases every year.

01:13:32.560 --> 01:13:33.899
Whereas  the CPA,

01:13:33.899 --> 01:13:36.710
45% I think is homes.

01:13:37.899 --> 01:13:38.139
Yeah

01:13:38.440 --> 01:13:40.450
…   And  so the CPA, as

01:13:40.450 --> 01:13:41.689
Carlo says, is very

01:13:41.689 --> 01:13:43.029
good for managing,

01:13:43.029 --> 01:13:44.029
if you're the Federal

01:13:44.029 --> 01:13:45.359
Reserve and you're

01:13:45.359 --> 01:13:46.429
managing monetary

01:13:46.429 --> 01:13:47.249
policy, it's very

01:13:47.270 --> 01:13:48.259
useful for that.

01:13:48.749 --> 01:13:49.349
But it doesn't

01:13:49.349 --> 01:13:51.009
describe  what

01:13:51.039 --> 01:13:51.769
is probably

01:13:51.770 --> 01:13:52.519
happening to a lot

01:13:52.520 --> 01:13:53.279
of your clients.

01:13:53.279 --> 01:13:53.989
They're getting eaten

01:13:53.989 --> 01:13:55.209
alive by the Chapwood

01:13:55.249 --> 01:13:56.230
Index, right?

01:13:56.270 --> 01:13:56.770
Yes.

01:13:56.799 --> 01:13:57.900
The, yeah, the CPI.

01:13:58.480 --> 01:13:59.649
And the… But to

01:13:59.649 --> 01:14:01.209
me, I heard  as

01:14:01.209 --> 01:14:02.700
much as they're very

01:14:02.700 --> 01:14:03.199
knowledgeable and

01:14:03.200 --> 01:14:03.880
everything, I think

01:14:03.880 --> 01:14:04.910
Carlo said that the

01:14:06.770 --> 01:14:07.769
Chapwood Index is

01:14:07.789 --> 01:14:10.120
anecdotal, and to me-

01:14:13.077 --> 01:14:13.668
I don't care.

01:14:13.907 --> 01:14:15.138
If it's a real person

01:14:15.548 --> 01:14:16.277
that's actually

01:14:16.277 --> 01:14:17.018
reporting that to

01:14:17.018 --> 01:14:17.848
the Chapwood Index

01:14:17.857 --> 01:14:18.458
of the price of

01:14:18.468 --> 01:14:19.968
milk in Philadelphia

01:14:20.758 --> 01:14:21.857
He's using fi-

01:14:22.157 --> 01:14:22.947
I think it's,

01:14:23.407 --> 01:14:24.378
it was 500.

01:14:24.378 --> 01:14:25.147
It might have been

01:14:25.147 --> 01:14:25.687
gone down to 150.

01:14:26.288 --> 01:14:27.377
But he's using

01:14:27.637 --> 01:14:28.517
actual prices.

01:14:28.707 --> 01:14:28.867
Yeah.

01:14:28.867 --> 01:14:29.397
It's mathematically

01:14:29.397 --> 01:14:30.107
calculated- Yeah

01:14:30.137 --> 01:14:31.088
… from the kind of

01:14:31.088 --> 01:14:32.558
prices most people

01:14:32.607 --> 01:14:33.357
are having to…

01:14:33.627 --> 01:14:34.558
It's household goods.

01:14:34.958 --> 01:14:36.088
So it's- Yeah, but

01:14:36.088 --> 01:14:36.538
to me, that's the

01:14:36.538 --> 01:14:37.088
mo- that's what I

01:14:37.088 --> 01:14:38.058
care about most, even

01:14:38.058 --> 01:14:38.867
if it's anecdotal

01:14:38.867 --> 01:14:40.527
from a macroeconomic

01:14:40.527 --> 01:14:41.157
standpoint.

01:14:41.877 --> 01:14:42.517
To me, it's what

01:14:42.517 --> 01:14:43.107
I care about.

01:14:43.537 --> 01:14:44.387
As long as it's real.

01:14:44.387 --> 01:14:44.928
As, as long as it's

01:14:44.928 --> 01:14:45.598
not fake, which I

01:14:45.607 --> 01:14:46.257
don't think it is.

01:14:46.857 --> 01:14:47.388
No, I think

01:14:47.388 --> 01:14:48.077
it's very real.

01:14:48.077 --> 01:14:48.718
I, and I think

01:14:48.718 --> 01:14:49.688
it's very reliable.

01:14:49.688 --> 01:14:51.197
So I think both

01:14:51.208 --> 01:14:52.197
the CPI and the

01:14:52.197 --> 01:14:52.938
Chapwood Index

01:14:52.938 --> 01:14:53.817
are both reliable.

01:14:53.827 --> 01:14:54.308
They're just-

01:14:54.807 --> 01:14:54.967
They're measuring

01:14:54.967 --> 01:14:54.987
different ways

01:14:54.987 --> 01:14:55.668
…  measuring very…

01:14:56.407 --> 01:14:57.228
But  here's the

01:14:57.228 --> 01:14:59.188
problem if  for

01:14:59.188 --> 01:15:00.117
you and me.

01:15:00.547 --> 01:15:02.087
I think the deflation

01:15:02.098 --> 01:15:03.117
is gonna hit…

01:15:03.787 --> 01:15:04.607
So let me stop.

01:15:04.677 --> 01:15:05.117
I think I

01:15:05.117 --> 01:15:05.757
sent you this.

01:15:06.168 --> 01:15:07.098
We have a wonderful

01:15:07.098 --> 01:15:08.677
subscriber, very

01:15:08.677 --> 01:15:09.647
knowledgeable and

01:15:09.657 --> 01:15:10.817
very successful in

01:15:10.817 --> 01:15:12.018
how he's managed

01:15:12.677 --> 01:15:14.507
his family's sort

01:15:14.508 --> 01:15:15.927
of adaptation to

01:15:15.937 --> 01:15:16.938
the way the world

01:15:16.938 --> 01:15:19.168
works, and he talked

01:15:19.168 --> 01:15:20.688
about  he tried to

01:15:20.688 --> 01:15:21.957
hire somebody to do

01:15:21.958 --> 01:15:23.777
an excavation, and

01:15:24.757 --> 01:15:25.307
they were gonna be

01:15:25.307 --> 01:15:26.297
very expensive, but

01:15:26.297 --> 01:15:27.297
they were busy, so

01:15:27.297 --> 01:15:29.978
he went  I forget

01:15:29.978 --> 01:15:30.858
who he went to, but

01:15:30.858 --> 01:15:31.798
he went to somebody

01:15:31.798 --> 01:15:33.328
who he could buy a

01:15:33.328 --> 01:15:34.767
Chinese excavation

01:15:34.897 --> 01:15:37.107
machine for less than

01:15:37.138 --> 01:15:38.357
this other guy was

01:15:38.357 --> 01:15:39.227
gonna charge him, and

01:15:39.227 --> 01:15:40.348
he did it himself.

01:15:41.388 --> 01:15:42.937
And then  he and

01:15:42.937 --> 01:15:43.768
his family started

01:15:43.768 --> 01:15:44.787
going to Temu,

01:15:44.797 --> 01:15:46.927
which is a Chinese

01:15:46.937 --> 01:15:48.187
sort of Amazon.

01:15:49.077 --> 01:15:50.007
And he was buying

01:15:50.017 --> 01:15:51.237
things for  just

01:15:51.237 --> 01:15:52.258
phenomenally

01:15:52.258 --> 01:15:53.218
lower prices.

01:15:53.278 --> 01:15:53.558
Yeah.

01:15:53.568 --> 01:15:53.578
I

01:15:53.638 --> 01:15:55.067
mean, phenomenally.

01:15:55.497 --> 01:15:56.437
And so I went to

01:15:56.437 --> 01:15:57.357
Temu and I thought

01:15:57.708 --> 01:15:58.268
is there gonna be

01:15:58.268 --> 01:15:59.147
shipping problems?

01:15:59.187 --> 01:15:59.737
No, they have a

01:15:59.737 --> 01:16:00.708
partnership with

01:16:00.717 --> 01:16:01.867
the Netherlands

01:16:01.867 --> 01:16:02.647
Post Office.

01:16:03.837 --> 01:16:05.437
So no problem there.

01:16:05.827 --> 01:16:06.858
And I started looking

01:16:06.858 --> 01:16:08.437
at scarves like the

01:16:08.437 --> 01:16:09.547
kind I was, I'd been

01:16:09.547 --> 01:16:10.637
buying on Etsy for

01:16:10.637 --> 01:16:12.737
maybe 50 to $100.

01:16:12.747 --> 01:16:13.067
Yeah.

01:16:13.717 --> 01:16:14.507
They were 5 to

01:16:14.528 --> 01:16:15.897
$10 on Temu.

01:16:15.907 --> 01:16:15.927
Yeah.

01:16:16.337 --> 01:16:17.237
Now, I haven't tried

01:16:17.237 --> 01:16:18.717
it yet  and I've

01:16:18.717 --> 01:16:19.507
gotta do some more

01:16:19.507 --> 01:16:21.527
research, but  he

01:16:21.528 --> 01:16:22.358
gave me a whole

01:16:22.367 --> 01:16:23.257
list, he, when he

01:16:23.278 --> 01:16:24.247
posted, a whole

01:16:24.248 --> 01:16:25.317
list of examples

01:16:25.328 --> 01:16:26.688
of where they've

01:16:26.697 --> 01:16:27.887
been able to drop

01:16:28.278 --> 01:16:29.187
prices that they're

01:16:29.188 --> 01:16:30.848
paying dramatically

01:16:31.227 --> 01:16:32.407
by using Temu.

01:16:33.537 --> 01:16:34.348
To me, that question

01:16:34.348 --> 01:16:35.987
then becomes, over

01:16:35.987 --> 01:16:37.067
time, how does

01:16:37.067 --> 01:16:38.157
that stuff perform?

01:16:38.907 --> 01:16:40.117
Because that's

01:16:40.117 --> 01:16:41.047
the one question

01:16:41.047 --> 01:16:41.948
I have about-

01:16:42.447 --> 01:16:43.287
Chinese-made.

01:16:43.307 --> 01:16:44.727
Is it made with

01:16:44.767 --> 01:16:46.087
toxic chemicals

01:16:46.087 --> 01:16:46.818
in the scarf?

01:16:47.117 --> 01:16:48.297
Does the tractor

01:16:48.307 --> 01:16:49.927
fall apart after six

01:16:49.927 --> 01:16:50.877
months or whatever?

01:16:51.037 --> 01:16:51.437
I don't know

01:16:51.437 --> 01:16:52.057
these answers, but

01:16:52.067 --> 01:16:52.627
that would be my

01:16:52.627 --> 01:16:53.237
concern with it.

01:16:54.257 --> 01:16:55.007
So there are all

01:16:55.007 --> 01:16:55.907
those concerns.

01:16:55.907 --> 01:16:57.557
But  here's what

01:16:58.998 --> 01:17:00.357
Carlos has said, and

01:17:00.358 --> 01:17:01.058
I think he's right.

01:17:01.058 --> 01:17:02.587
He said, "China

01:17:02.608 --> 01:17:05.287
has no other choice

01:17:05.287 --> 01:17:06.337
but to export

01:17:06.337 --> 01:17:07.388
their deflation."

01:17:09.496 --> 01:17:11.336
And  so they're

01:17:11.336 --> 01:17:11.816
gonna have to

01:17:11.816 --> 01:17:12.746
improve quality

01:17:12.746 --> 01:17:13.486
control, which

01:17:13.486 --> 01:17:14.306
they've been doing.

01:17:15.756 --> 01:17:16.885
But you have… And

01:17:16.906 --> 01:17:17.986
this is really gonna

01:17:17.986 --> 01:17:20.655
hit Europe    cause

01:17:20.656 --> 01:17:21.576
there's a sort of

01:17:21.576 --> 01:17:22.635
tighter relationship

01:17:22.635 --> 01:17:23.246
into the EU.

01:17:23.496 --> 01:17:24.485
So- Yeah … so

01:17:24.486 --> 01:17:25.246
you have China

01:17:25.256 --> 01:17:26.635
exporting deflation,

01:17:26.635 --> 01:17:28.005
and you have autom-

01:17:28.006 --> 01:17:29.135
automation also

01:17:29.156 --> 01:17:31.066
exporting deflation.

01:17:31.775 --> 01:17:33.015
And I've seen it as,

01:17:33.135 --> 01:17:35.436
as we constantly try

01:17:35.436 --> 01:17:36.315
and automate things

01:17:36.316 --> 01:17:37.605
at the Solari Report.

01:17:38.076 --> 01:17:39.115
The dramat- like,

01:17:39.115 --> 01:17:39.965
on the Investment

01:17:39.965 --> 01:17:40.955
Screen Company-

01:17:41.476 --> 01:17:42.336
There is so

01:17:42.336 --> 01:17:43.295
much now we can

01:17:43.306 --> 01:17:44.376
automate in terms

01:17:44.376 --> 01:17:45.576
of maintaining…

01:17:46.035 --> 01:17:46.265
If you're

01:17:46.265 --> 01:17:47.226
maintaining a list

01:17:47.226 --> 01:17:48.355
of 1,000 stocks,

01:17:48.355 --> 01:17:48.766
you're getting

01:17:48.766 --> 01:17:49.536
mergers, you're

01:17:49.536 --> 01:17:50.535
getting changes,

01:17:50.535 --> 01:17:51.115
you're getting-

01:17:51.125 --> 01:17:52.685
Yeah …  Wild stock

01:17:52.686 --> 01:17:53.676
cha-  so you've…

01:17:53.736 --> 01:17:54.636
It's, maintenance

01:17:54.686 --> 01:17:55.925
requires an enormous

01:17:55.925 --> 01:17:56.715
amount of work.

01:17:57.945 --> 01:17:58.896
And we've been able

01:17:58.896 --> 01:18:00.256
to automate fantastic

01:18:00.256 --> 01:18:01.935
amounts, as well as

01:18:02.646 --> 01:18:03.645
we're always trolling

01:18:03.646 --> 01:18:04.655
for acquisitions.

01:18:04.835 --> 01:18:05.085
Yeah.

01:18:05.105 --> 01:18:05.785
And if you look at

01:18:05.795 --> 01:18:06.665
how much we've been

01:18:06.666 --> 01:18:08.076
able to automate just

01:18:08.076 --> 01:18:08.755
in the Investment

01:18:08.756 --> 01:18:09.725
Screen Company-

01:18:10.036 --> 01:18:11.005
it's fantastic.

01:18:11.095 --> 01:18:11.425
Yeah.

01:18:13.965 --> 01:18:14.515
All that.

01:18:14.755 --> 01:18:15.746
But let's go

01:18:15.755 --> 01:18:16.225
back to the

01:18:16.225 --> 01:18:17.255
inflationary trends.

01:18:17.285 --> 01:18:18.945
My concern is

01:18:20.085 --> 01:18:20.915
particularly if you

01:18:20.916 --> 01:18:22.335
look at the tsunami

01:18:23.375 --> 01:18:24.355
that they're pouring

01:18:24.355 --> 01:18:25.675
into the control grid

01:18:25.675 --> 01:18:27.106
companies, but also

01:18:27.615 --> 01:18:28.775
the bubble machine.

01:18:29.556 --> 01:18:30.815
They can bubble,

01:18:30.916 --> 01:18:31.825
if they use crypto

01:18:31.825 --> 01:18:32.715
rails to bubble the

01:18:32.725 --> 01:18:35.375
stock market, with 20

01:18:35.375 --> 01:18:38.515
times margin and 24/7

01:18:38.745 --> 01:18:39.455
using the same tech-

01:18:39.526 --> 01:18:40.225
Tokenizing everything

01:18:40.236 --> 01:18:40.845
to get there.

01:18:42.136 --> 01:18:43.546
So remember

01:18:43.876 --> 01:18:45.425
somebody, somebody

01:18:45.425 --> 01:18:46.235
young can wake

01:18:46.236 --> 01:18:46.835
up in the middle

01:18:46.835 --> 01:18:47.445
of the night and

01:18:47.445 --> 01:18:50.046
trade  Apple stock-

01:18:50.535 --> 01:18:50.865
Yeah

01:18:50.895 --> 01:18:52.515
24/7 with 20

01:18:52.515 --> 01:18:53.426
times leverage.

01:18:55.045 --> 01:18:55.325
So-

01:18:55.385 --> 01:18:56.525
Yeah, I think li-

01:18:56.795 --> 01:18:57.685
liquidity does

01:18:57.685 --> 01:18:58.455
matter, though,

01:18:58.865 --> 01:18:59.305
unless you're

01:18:59.306 --> 01:19:00.276
gonna support it

01:19:00.325 --> 01:19:00.975
with liquidity.

01:19:01.736 --> 01:19:02.425
Oh, I think they're

01:19:02.425 --> 01:19:03.055
gonna pump out

01:19:03.056 --> 01:19:03.955
leverage on those

01:19:03.965 --> 01:19:04.835
stablecoin networks.

01:19:04.835 --> 01:19:05.266
But not just

01:19:05.266 --> 01:19:05.965
leverage, but the

01:19:05.965 --> 01:19:06.776
ability to somebody

01:19:06.815 --> 01:19:07.405
to take the other

01:19:07.405 --> 01:19:08.265
side of the trade.

01:19:08.455 --> 01:19:09.305
If you're trading at

01:19:09.306 --> 01:19:10.755
2:00 AM, if there's

01:19:10.815 --> 01:19:11.675
nobody on the other

01:19:11.675 --> 01:19:12.445
side of the trade,

01:19:12.455 --> 01:19:13.305
the spread widens.

01:19:13.765 --> 01:19:14.275
That's true.

01:19:14.335 --> 01:19:14.956
But maybe they'll

01:19:15.565 --> 01:19:16.215
automate that

01:19:16.215 --> 01:19:17.936
function  and just

01:19:18.125 --> 01:19:19.055
with unlimited money.

01:19:19.055 --> 01:19:19.455
I don't know.

01:19:20.245 --> 01:19:21.986
So here's my concern.

01:19:22.725 --> 01:19:23.215
You're gonna

01:19:23.215 --> 01:19:24.425
get deflation in

01:19:24.426 --> 01:19:25.495
your revenues.

01:19:25.875 --> 01:19:26.355
You're gonna

01:19:26.355 --> 01:19:27.625
get inflation in

01:19:27.625 --> 01:19:28.785
your expenses.

01:19:29.545 --> 01:19:30.695
And if you look

01:19:30.695 --> 01:19:31.765
at who's protected

01:19:31.765 --> 01:19:32.485
themselves around

01:19:32.495 --> 01:19:32.995
the world, they

01:19:32.995 --> 01:19:34.165
protected themselves

01:19:34.635 --> 01:19:36.305
by asset bubbles.

01:19:38.905 --> 01:19:40.005
So you've got three

01:19:40.015 --> 01:19:40.805
things to watch.

01:19:40.805 --> 01:19:41.595
One are revenues,

01:19:41.596 --> 01:19:42.665
one are expenses, and

01:19:42.665 --> 01:19:43.795
the other are assets.

01:19:43.865 --> 01:19:44.115
Yeah.

01:19:44.905 --> 01:19:45.585
And that's what you

01:19:45.596 --> 01:19:46.576
have to keep in mind,

01:19:46.576 --> 01:19:47.795
because we could

01:19:47.805 --> 01:19:49.465
have stagflation.

01:19:49.475 --> 01:19:50.276
We could have

01:19:51.115 --> 01:19:51.956
deflation on

01:19:51.956 --> 01:19:52.726
our revenues

01:19:52.755 --> 01:19:53.686
and inflation

01:19:53.686 --> 01:19:54.525
on our expenses.

01:19:55.685 --> 01:19:56.355
And I think

01:19:56.355 --> 01:19:56.935
that's part of

01:19:56.935 --> 01:19:57.615
what's happening.

01:19:57.825 --> 01:19:57.955
Yeah.

01:19:58.155 --> 01:19:59.106
Okay, next slide.

01:20:02.112 --> 01:20:02.732
Okay, I thought I'd

01:20:02.732 --> 01:20:03.622
just quick show you

01:20:03.622 --> 01:20:05.001
because if you wanna

01:20:05.001 --> 01:20:06.082
know why everybody's

01:20:06.082 --> 01:20:07.402
mad, here it is.

01:20:07.932 --> 01:20:08.202
Yeah.

01:20:09.352 --> 01:20:09.572
Yeah.

01:20:10.552 --> 01:20:11.041
Even stuff like

01:20:11.041 --> 01:20:13.312
rice or jet

01:20:13.312 --> 01:20:14.421
fuel  th- that's

01:20:14.422 --> 01:20:15.352
where… Cotton.

01:20:15.882 --> 01:20:16.412
Yeah, this

01:20:16.422 --> 01:20:17.411
is COVID 2.0.

01:20:17.411 --> 01:20:17.972
This is how you

01:20:17.982 --> 01:20:18.692
wipe out small

01:20:18.692 --> 01:20:19.192
farmers- Yeah … and

01:20:19.392 --> 01:20:20.041
small business.

01:20:21.242 --> 01:20:21.791
And you're right,

01:20:21.791 --> 01:20:22.591
we haven't seen

01:20:22.591 --> 01:20:23.261
winter yet.

01:20:25.812 --> 01:20:28.132
Okay  next slide

01:20:29.134 --> 01:20:30.184
Okay, so this is

01:20:30.184 --> 01:20:31.284
the big one, Tim,

01:20:31.684 --> 01:20:32.854
and  I know I keep

01:20:32.864 --> 01:20:33.574
bringing this up,

01:20:33.574 --> 01:20:34.484
but the last month

01:20:34.484 --> 01:20:35.554
has been worse than

01:20:35.554 --> 01:20:37.444
I have ever seen it.

01:20:38.354 --> 01:20:39.734
Shadow work is

01:20:39.764 --> 01:20:41.443
my definition

01:20:41.443 --> 01:20:43.544
for inflation in

01:20:43.544 --> 01:20:44.644
your time budget.

01:20:45.644 --> 01:20:47.603
You suddenly picking

01:20:47.603 --> 01:20:48.933
up hundreds of

01:20:48.933 --> 01:20:50.103
hours th- of work

01:20:50.103 --> 01:20:50.924
you have to do that

01:20:50.924 --> 01:20:51.733
you didn't plan

01:20:51.734 --> 01:20:52.564
on, you didn't know

01:20:52.564 --> 01:20:53.473
you'd have to do.

01:20:54.013 --> 01:20:54.713
So here's where

01:20:54.714 --> 01:20:55.403
it's coming from.

01:20:55.403 --> 01:20:56.023
The first place

01:20:56.044 --> 01:20:56.953
it's coming from

01:20:56.974 --> 01:20:58.363
is from fraud.

01:20:59.173 --> 01:21:00.343
So there's financial

01:21:00.353 --> 01:21:02.114
fraud and  and

01:21:02.114 --> 01:21:03.033
cyber crime.

01:21:04.634 --> 01:21:05.453
At Solari, we're

01:21:05.454 --> 01:21:06.013
dealing with

01:21:06.014 --> 01:21:07.663
imposters, and

01:21:07.663 --> 01:21:08.654
the problem is not

01:21:08.654 --> 01:21:09.613
that the imposters

01:21:09.614 --> 01:21:11.273
are  persuading

01:21:11.273 --> 01:21:11.874
people I said

01:21:11.874 --> 01:21:12.833
things I never said.

01:21:13.134 --> 01:21:13.814
The problem is

01:21:13.814 --> 01:21:14.364
they're stinging

01:21:14.384 --> 01:21:14.854
people, they're

01:21:14.854 --> 01:21:15.413
stealing.

01:21:15.783 --> 01:21:16.123
Yeah.

01:21:16.413 --> 01:21:17.663
And  so we've

01:21:17.663 --> 01:21:19.164
hired firms  and

01:21:19.224 --> 01:21:20.383
are taking action.

01:21:21.443 --> 01:21:23.243
Cause we  I don't

01:21:23.244 --> 01:21:24.183
want my name being

01:21:24.183 --> 01:21:25.244
used to sting people,

01:21:25.253 --> 01:21:28.033
but  it's amazing the

01:21:28.033 --> 01:21:29.634
number of people who

01:21:29.794 --> 01:21:30.903
when you look into…

01:21:30.933 --> 01:21:31.723
I just listened

01:21:31.724 --> 01:21:32.723
to Bob Sullivan's

01:21:32.733 --> 01:21:33.563
latest  podcast.

01:21:34.693 --> 01:21:34.703
I

01:21:35.263 --> 01:21:35.663
mean, it's

01:21:35.663 --> 01:21:36.713
frightening how many

01:21:36.714 --> 01:21:37.393
people are getting

01:21:37.403 --> 01:21:38.144
stung, and how much

01:21:38.174 --> 01:21:38.963
money they're making

01:21:38.964 --> 01:21:40.603
from financial fraud.

01:21:40.613 --> 01:21:41.183
Then we have

01:21:41.204 --> 01:21:42.263
corporations that are

01:21:42.263 --> 01:21:43.283
adopting fraudulent

01:21:43.284 --> 01:21:44.203
business models.

01:21:44.773 --> 01:21:46.104
So travel services,

01:21:46.104 --> 01:21:46.734
insurance.

01:21:47.113 --> 01:21:47.843
Wall Street Journal,

01:21:47.843 --> 01:21:48.663
a new article,

01:21:48.964 --> 01:21:50.383
only half of home

01:21:50.924 --> 01:21:52.014
insurance claims

01:21:52.034 --> 01:21:53.334
are being paid.

01:21:53.833 --> 01:21:54.163
Yeah.

01:21:55.373 --> 01:21:57.434
And    it's

01:21:57.503 --> 01:21:58.284
s- insane.

01:21:58.763 --> 01:21:59.623
The other thing is,

01:21:59.623 --> 01:22:00.423
and this is thanks

01:22:00.433 --> 01:22:01.483
to Michael Yon, I

01:22:01.483 --> 01:22:02.704
made a whole circle

01:22:02.704 --> 01:22:04.123
of addiction vectors.

01:22:04.604 --> 01:22:04.634
Okay.

01:22:04.653 --> 01:22:05.423
All the different

01:22:05.424 --> 01:22:05.883
ways they're

01:22:05.884 --> 01:22:06.513
trying to get our

01:22:06.513 --> 01:22:07.394
kids addicted.

01:22:08.513 --> 01:22:09.603
And it's so many,

01:22:09.613 --> 01:22:10.993
you just can't even-

01:22:11.513 --> 01:22:12.533
What is QFS?

01:22:13.424 --> 01:22:14.823
QFS is the Quantum

01:22:14.823 --> 01:22:15.793
Financial System.

01:22:16.333 --> 01:22:16.363
Okay.

01:22:17.033 --> 01:22:18.263
I just had a back and

01:22:18.263 --> 01:22:19.383
forth with some cult

01:22:19.403 --> 01:22:21.913
member of QFS who

01:22:22.994 --> 01:22:24.183
said how disappointed

01:22:24.253 --> 01:22:25.093
he was 'cause I,

01:22:25.123 --> 01:22:25.864
he used to think

01:22:25.864 --> 01:22:26.383
I knew what I was

01:22:26.384 --> 01:22:28.113
talking about, but  I

01:22:28.123 --> 01:22:29.513
didn't embrace QFS.

01:22:30.013 --> 01:22:30.623
I wrote him back

01:22:30.623 --> 01:22:31.163
and I said, "It's

01:22:31.163 --> 01:22:31.913
an adult fairy

01:22:31.913 --> 01:22:34.163
tale,"   and I just

01:22:34.163 --> 01:22:35.083
had somebody report

01:22:35.083 --> 01:22:36.584
they, they got stung

01:22:37.613 --> 01:22:38.643
but for, and a lot

01:22:38.643 --> 01:22:40.713
of money in QFS.

01:22:40.714 --> 01:22:40.744
Okay.

01:22:41.074 --> 01:22:41.773
Now, the problem

01:22:41.773 --> 01:22:42.573
is you get a report

01:22:42.574 --> 01:22:43.104
like that, and you

01:22:43.104 --> 01:22:43.603
don't know if they're

01:22:43.604 --> 01:22:44.364
telling the truth

01:22:44.364 --> 01:22:44.914
or they're just

01:22:44.914 --> 01:22:45.843
another imposter.

01:22:45.893 --> 01:22:46.113
Yeah.

01:22:46.634 --> 01:22:47.373
And then, of course,

01:22:47.373 --> 01:22:48.113
the gambling and

01:22:48.113 --> 01:22:48.993
prediction markets

01:22:48.994 --> 01:22:49.834
have exploded,

01:22:49.843 --> 01:22:50.863
and everybody's

01:22:50.863 --> 01:22:51.623
losing money there.

01:22:51.623 --> 01:22:52.923
So if you look

01:22:53.604 --> 01:22:54.313
and then there's

01:22:54.313 --> 01:22:54.873
the healthcare

01:22:54.873 --> 01:22:55.624
fraud as well.

01:22:55.634 --> 01:22:56.574
So if you just

01:22:56.574 --> 01:22:57.813
look at the drain

01:22:59.184 --> 01:23:00.253
o- of people, and

01:23:00.253 --> 01:23:01.373
that's why it's so

01:23:01.403 --> 01:23:02.113
important you do

01:23:02.153 --> 01:23:03.343
everything you can

01:23:03.854 --> 01:23:05.083
to only do business

01:23:05.113 --> 01:23:06.213
with companies or

01:23:06.214 --> 01:23:08.364
people who don't

01:23:08.384 --> 01:23:09.433
engage in fraud.

01:23:09.813 --> 01:23:11.548
Yeah Just real quick,

01:23:11.568 --> 01:23:12.308
even like the, the

01:23:12.308 --> 01:23:13.558
p- the move to push

01:23:13.558 --> 01:23:15.348
people to online.

01:23:15.398 --> 01:23:16.527
In Pennsylvania,

01:23:16.987 --> 01:23:17.737
the legislature,

01:23:17.737 --> 01:23:18.068
there's something

01:23:18.068 --> 01:23:19.128
called skill games,

01:23:19.157 --> 01:23:20.218
which are these games

01:23:20.508 --> 01:23:21.848
in a gas station

01:23:22.298 --> 01:23:23.258
where somebody sits

01:23:23.258 --> 01:23:24.038
and plays like a

01:23:24.048 --> 01:23:24.878
slot machine in

01:23:24.878 --> 01:23:25.508
the middle, inside

01:23:25.508 --> 01:23:26.247
of a gas station.

01:23:26.718 --> 01:23:28.357
And they are all

01:23:28.367 --> 01:23:30.068
over rural  and less

01:23:30.068 --> 01:23:30.838
wealthy sections

01:23:30.838 --> 01:23:31.667
of Pennsylvania.

01:23:32.107 --> 01:23:33.168
And the legislature,

01:23:33.168 --> 01:23:33.508
there was a…

01:23:34.247 --> 01:23:35.178
To make it short,

01:23:35.548 --> 01:23:36.917
the, they're getting,

01:23:36.927 --> 01:23:37.807
the, the state

01:23:37.808 --> 01:23:39.548
police are r- have

01:23:39.587 --> 01:23:41.367
trucks ready if the

01:23:41.367 --> 01:23:42.258
legislature doesn't

01:23:42.267 --> 01:23:43.718
act to drive around

01:23:43.718 --> 01:23:44.567
and pick up all the

01:23:44.568 --> 01:23:45.137
machines, and there's

01:23:45.138 --> 01:23:45.877
a lot of machines.

01:23:45.877 --> 01:23:47.007
I can't know how

01:23:47.017 --> 01:23:47.657
long that's gonna

01:23:47.658 --> 01:23:48.187
take the state

01:23:48.187 --> 01:23:48.957
police to do it.

01:23:49.237 --> 01:23:49.907
But what do you think

01:23:49.937 --> 01:23:50.467
people are gonna

01:23:50.478 --> 01:23:51.567
do when you're an

01:23:51.568 --> 01:23:52.747
80-year-old lady  in

01:23:52.748 --> 01:23:53.207
rural and you've

01:23:53.208 --> 01:23:53.677
been going out to

01:23:53.677 --> 01:23:54.367
the gas station

01:23:54.367 --> 01:23:54.657
and hitting the

01:23:54.658 --> 01:23:55.607
buttons all the time?

01:23:56.138 --> 01:23:56.838
Go online.

01:23:57.737 --> 01:23:58.958
And it'll just

01:23:58.978 --> 01:23:59.897
feed…  It's just

01:23:59.897 --> 01:24:01.168
another aspect

01:24:01.638 --> 01:24:02.357
of getting rid

01:24:02.357 --> 01:24:03.258
of the real, even

01:24:03.258 --> 01:24:04.148
from gambling-

01:24:04.757 --> 01:24:05.167
Right

01:24:05.357 --> 01:24:06.247
…  to push people

01:24:06.467 --> 01:24:07.737
into a, a digital

01:24:07.757 --> 01:24:08.547
format, to me.

01:24:10.708 --> 01:24:12.227
And meantime, both

01:24:12.237 --> 01:24:13.087
the government and

01:24:13.087 --> 01:24:14.077
companies are doing

01:24:14.077 --> 01:24:14.968
more and more sort of

01:24:14.968 --> 01:24:16.358
technocracy to make

01:24:16.358 --> 01:24:17.327
you do it yourself.

01:24:18.448 --> 01:24:19.068
And that's

01:24:19.077 --> 01:24:19.477
tremendous.

01:24:19.487 --> 01:24:20.117
If you look at how

01:24:20.117 --> 01:24:20.898
much time it takes

01:24:20.898 --> 01:24:21.978
us for regulatory

01:24:21.978 --> 01:24:23.297
compliance, it's more

01:24:24.067 --> 01:24:25.117
it's more every year.

01:24:25.228 --> 01:24:25.638
Yeah.

01:24:26.207 --> 01:24:27.408
There is a serious

01:24:27.408 --> 01:24:28.567
deterioration in

01:24:28.567 --> 01:24:29.487
the United States

01:24:29.487 --> 01:24:30.508
and jurisdictions.

01:24:32.037 --> 01:24:33.348
Municipal services,

01:24:33.378 --> 01:24:34.058
the quality of

01:24:34.058 --> 01:24:35.167
infrastructure

01:24:36.158 --> 01:24:36.907
everybody's now

01:24:36.908 --> 01:24:37.917
woken up to the fact

01:24:37.917 --> 01:24:38.868
they're paying for

01:24:38.868 --> 01:24:39.797
flock cameras to do

01:24:39.798 --> 01:24:40.998
surveillance on them.

01:24:41.577 --> 01:24:42.327
So you're paying

01:24:42.327 --> 01:24:43.127
for your privacy

01:24:43.127 --> 01:24:44.207
to be compromised.

01:24:44.787 --> 01:24:47.447
And    and

01:24:47.448 --> 01:24:47.997
we're coming

01:24:47.997 --> 01:24:49.797
into the    the

01:24:49.807 --> 01:24:51.047
midterm elections.

01:24:52.320 --> 01:24:53.670
And that's gonna be

01:24:53.670 --> 01:24:54.560
a time when people

01:24:54.560 --> 01:24:56.030
get together and vent

01:24:56.030 --> 01:24:57.200
their frustrations.

01:24:58.120 --> 01:25:00.350
So  I just think if

01:25:00.350 --> 01:25:01.169
you're not in a good

01:25:01.170 --> 01:25:02.090
jurisdiction, you

01:25:02.100 --> 01:25:03.040
really wanna think

01:25:03.040 --> 01:25:05.170
about being in a good

01:25:05.170 --> 01:25:06.950
jurisdiction  and

01:25:06.980 --> 01:25:08.149
what you can do if

01:25:08.150 --> 01:25:08.870
you wanna stay in

01:25:08.870 --> 01:25:09.719
your jurisdiction

01:25:09.719 --> 01:25:10.550
to make it better.

01:25:10.950 --> 01:25:11.180
Yeah.

01:25:12.899 --> 01:25:14.419
And finally, I've

01:25:14.420 --> 01:25:16.140
never had  except

01:25:16.140 --> 01:25:17.609
for the worst period

01:25:17.680 --> 01:25:18.710
in the litigation,

01:25:19.159 --> 01:25:20.000
when the average

01:25:20.000 --> 01:25:21.510
life of my laptop

01:25:21.520 --> 01:25:22.779
was 29 days.

01:25:23.940 --> 01:25:24.780
No, for a year.

01:25:24.780 --> 01:25:25.800
I had- Yeah … 13

01:25:25.810 --> 01:25:27.010
laptops in one year.

01:25:27.029 --> 01:25:27.569
God bless

01:25:27.590 --> 01:25:28.329
Cort Skinner.

01:25:28.970 --> 01:25:29.949
He would put them

01:25:29.950 --> 01:25:30.600
together from

01:25:30.600 --> 01:25:31.589
used parts and

01:25:31.590 --> 01:25:32.449
send me a new one.

01:25:32.459 --> 01:25:32.479
Yeah.

01:25:32.489 --> 01:25:33.340
It was all open

01:25:33.340 --> 01:25:34.540
source, all Linux.

01:25:34.639 --> 01:25:35.019
Yeah.

01:25:35.700 --> 01:25:36.549
But the hacking was

01:25:36.549 --> 01:25:38.299
so bad, 29 days, had

01:25:38.299 --> 01:25:38.959
to have a new one.

01:25:39.069 --> 01:25:39.299
Wow.

01:25:40.239 --> 01:25:41.069
But the glitchy

01:25:41.069 --> 01:25:41.979
software in tech

01:25:41.989 --> 01:25:43.119
is unbelievable.

01:25:43.250 --> 01:25:45.020
And I had… I keep

01:25:45.029 --> 01:25:46.209
quoting this, one of

01:25:46.209 --> 01:25:47.249
the most intelligent

01:25:47.259 --> 01:25:47.929
things I've ever

01:25:47.930 --> 01:25:48.859
heard anybody say

01:25:48.860 --> 01:25:51.319
this year  someone

01:25:51.319 --> 01:25:52.789
was saying  the young

01:25:52.790 --> 01:25:53.849
people hate AI, and

01:25:54.509 --> 01:25:55.219
there was a very

01:25:55.219 --> 01:25:56.119
young woman in the

01:25:56.119 --> 01:25:56.890
room, and she said,

01:25:57.399 --> 01:25:58.569
"We don't hate AI.

01:25:58.889 --> 01:25:59.429
We hate the

01:25:59.429 --> 01:26:00.189
tech bros."

01:26:00.719 --> 01:26:00.899
Yeah.

01:26:01.079 --> 01:26:01.409
Yeah.

01:26:02.630 --> 01:26:03.639
It's like, okay.

01:26:03.830 --> 01:26:04.549
I just say quickly,

01:26:04.600 --> 01:26:05.160
anybody that's

01:26:05.209 --> 01:26:06.209
ever dealt with any

01:26:06.209 --> 01:26:07.509
level of software,

01:26:07.840 --> 01:26:10.080
the more layers

01:26:10.119 --> 01:26:10.839
that have to work

01:26:10.840 --> 01:26:11.840
together, the more

01:26:11.840 --> 01:26:12.659
potential there are

01:26:12.659 --> 01:26:13.439
for glitches, even

01:26:13.439 --> 01:26:14.239
if you're not being

01:26:14.240 --> 01:26:15.070
hacked or whatever.

01:26:15.869 --> 01:26:17.280
Which to me, lays

01:26:17.319 --> 01:26:18.939
bare the fraud of AI.

01:26:19.160 --> 01:26:20.070
The, the more

01:26:20.070 --> 01:26:21.189
complex, the hi- the

01:26:21.189 --> 01:26:22.459
more top-down it is,

01:26:22.840 --> 01:26:23.829
the more high level,

01:26:23.840 --> 01:26:24.889
the more things have

01:26:24.889 --> 01:26:26.679
to integrate, there's

01:26:26.679 --> 01:26:27.999
no way that's gonna

01:26:27.999 --> 01:26:29.059
happen smoothly.

01:26:30.069 --> 01:26:31.219
I can't tell you how

01:26:31.219 --> 01:26:34.049
many times I've heard

01:26:34.209 --> 01:26:35.759
this year people say

01:26:37.672 --> 01:26:38.661
Vintage classic and

01:26:38.661 --> 01:26:40.092
old cars is a great

01:26:40.102 --> 01:26:41.352
business opportunity.

01:26:41.852 --> 01:26:42.201
Yeah.

01:26:42.422 --> 01:26:43.331
I, I keep talking to

01:26:43.331 --> 01:26:44.342
people who've just

01:26:44.342 --> 01:26:45.291
bought an old car.

01:26:46.532 --> 01:26:47.642
Because they don't

01:26:47.642 --> 01:26:48.991
want, you know-

01:26:48.991 --> 01:26:49.032
They don't want the

01:26:49.032 --> 01:26:49.182
complexity … they

01:26:49.182 --> 01:26:49.911
want something a l-

01:26:49.941 --> 01:26:51.012
their local mechanic

01:26:51.021 --> 01:26:51.942
can fix, and they

01:26:51.942 --> 01:26:52.362
don't want the

01:26:52.362 --> 01:26:53.251
complexity, and they

01:26:53.251 --> 01:26:55.442
don't wanna be  it's

01:26:55.561 --> 01:26:56.661
… A car is no longer

01:26:56.762 --> 01:26:57.711
a transportation

01:26:57.711 --> 01:26:58.522
vehicle, it's just

01:26:58.522 --> 01:26:59.642
a surveillance trap.

01:26:59.751 --> 01:26:59.972
Yeah.

01:27:00.041 --> 01:27:00.631
As long as you don't

01:27:00.631 --> 01:27:01.351
get in your vintage

01:27:01.352 --> 01:27:02.071
car with your phone

01:27:02.071 --> 01:27:02.791
and go down the road

01:27:02.791 --> 01:27:03.211
and think you're

01:27:03.221 --> 01:27:04.241
s- you're  secure.

01:27:05.281 --> 01:27:05.931
Exactly.

01:27:06.592 --> 01:27:08.351
Okay  next slide.

01:27:09.131 --> 01:27:10.982
Okay, so now we

01:27:10.982 --> 01:27:12.381
bring all the current

01:27:12.392 --> 01:27:14.091
trends down to

01:27:14.201 --> 01:27:15.021
what's the action,

01:27:15.021 --> 01:27:15.621
what do you do?

01:27:16.701 --> 01:27:17.281
So here's

01:27:17.282 --> 01:27:17.971
your choice.

01:27:19.122 --> 01:27:19.731
You can stay

01:27:19.731 --> 01:27:21.141
invested, you

01:27:21.141 --> 01:27:22.012
can stay invested

01:27:22.012 --> 01:27:22.581
with a hedge.

01:27:22.581 --> 01:27:23.371
We have an old

01:27:23.911 --> 01:27:24.861
equity overview I

01:27:24.861 --> 01:27:25.961
did with Jason Worth

01:27:25.962 --> 01:27:27.191
on hedged equity,

01:27:27.231 --> 01:27:28.011
what that means,

01:27:28.012 --> 01:27:28.691
how you do it.

01:27:29.481 --> 01:27:30.661
You can  Ed

01:27:30.672 --> 01:27:31.401
Dowd is a great

01:27:31.401 --> 01:27:32.312
believer, everybody.

01:27:32.312 --> 01:27:32.911
He thinks it's

01:27:32.911 --> 01:27:33.901
the dotcom bubble

01:27:33.922 --> 01:27:35.701
part two  and he

01:27:35.711 --> 01:27:37.401
says  I'm, I wanna

01:27:37.401 --> 01:27:38.091
get out and go

01:27:38.091 --> 01:27:39.621
to high-quality

01:27:39.621 --> 01:27:40.382
fixed income."

01:27:42.491 --> 01:27:42.991
And

01:27:45.482 --> 01:27:45.951
it's really

01:27:45.951 --> 01:27:46.591
interesting 'cause

01:27:46.592 --> 01:27:47.741
I had a conversation

01:27:47.741 --> 01:27:48.631
with Steve who runs,

01:27:48.641 --> 01:27:49.582
Steve Smith who runs

01:27:49.601 --> 01:27:50.432
Parvin, and I said,

01:27:51.361 --> 01:27:52.372
" if you look at the

01:27:52.381 --> 01:27:53.802
bubble machinery that

01:27:53.802 --> 01:27:54.741
they are amassing

01:27:54.741 --> 01:27:55.431
to bubble this

01:27:55.442 --> 01:27:58.082
thing  to bring four

01:27:58.092 --> 01:27:59.741
billion new customers

01:27:59.762 --> 01:28:00.691
into the US stock

01:28:00.692 --> 01:28:03.462
market- I don't

01:28:03.522 --> 01:28:04.672
underestimate their

01:28:04.672 --> 01:28:05.642
ability to do it.

01:28:05.652 --> 01:28:08.632
So to me    I'm

01:28:08.632 --> 01:28:09.532
not with Ed on this

01:28:09.532 --> 01:28:10.232
one, and I love

01:28:10.232 --> 01:28:10.812
Ed, and I think

01:28:10.812 --> 01:28:11.642
he's real smart.

01:28:11.682 --> 01:28:13.512
But I-  I, even

01:28:13.512 --> 01:28:14.132
though you can get

01:28:14.132 --> 01:28:17.131
5%  or more in a

01:28:17.131 --> 01:28:18.131
high-quality fixed

01:28:18.131 --> 01:28:20.742
income, I wanna

01:28:20.742 --> 01:28:21.402
stay in things

01:28:21.402 --> 01:28:21.902
that are real.

01:28:21.902 --> 01:28:22.751
So I'm gonna stay

01:28:22.751 --> 01:28:23.621
invested or stay

01:28:23.622 --> 01:28:24.342
invested with a

01:28:24.342 --> 01:28:24.841
hedge, and the

01:28:24.841 --> 01:28:25.542
question is, do

01:28:25.542 --> 01:28:26.132
I wanna waste

01:28:26.132 --> 01:28:26.972
money on a hedge?

01:28:28.122 --> 01:28:28.881
Y- yeah.

01:28:28.981 --> 01:28:29.771
The, the challenge

01:28:29.772 --> 01:28:30.771
is, I think, with…

01:28:31.442 --> 01:28:32.321
So stay invested

01:28:32.321 --> 01:28:33.081
is stay invested.

01:28:33.112 --> 01:28:33.831
I will tell you

01:28:33.831 --> 01:28:34.811
that I give a

01:28:34.812 --> 01:28:35.882
lot of weight.

01:28:36.481 --> 01:28:37.511
I'm more on the Ed

01:28:37.551 --> 01:28:39.201
Dowd side than on the

01:28:39.792 --> 01:28:40.862
stay invested side.

01:28:41.981 --> 01:28:43.721
But  there's

01:28:43.722 --> 01:28:44.621
no free lunch.

01:28:45.042 --> 01:28:46.191
So if you're, if you

01:28:46.202 --> 01:28:47.461
get out, you have

01:28:47.461 --> 01:28:48.441
to, at some point,

01:28:49.091 --> 01:28:49.812
if, unless you have

01:28:49.851 --> 01:28:51.092
unlimited money, at

01:28:51.092 --> 01:28:51.502
some point, you're

01:28:51.502 --> 01:28:52.052
gonna have to get

01:28:52.052 --> 01:28:52.652
back in, and that

01:28:52.661 --> 01:28:53.921
introduces another

01:28:55.071 --> 01:28:55.732
decision that's

01:28:55.732 --> 01:28:56.491
not easy that you

01:28:56.491 --> 01:28:57.331
have to confront.

01:28:58.272 --> 01:28:58.891
The, the problems

01:28:58.891 --> 01:28:59.742
I've had with people,

01:28:59.742 --> 01:29:00.641
I've looked at hedges

01:29:00.641 --> 01:29:02.242
with people, and

01:29:02.242 --> 01:29:03.472
then it's the cost.

01:29:03.601 --> 01:29:04.411
People are shocked

01:29:04.432 --> 01:29:05.112
by the cost.

01:29:05.112 --> 01:29:05.821
I'm like, " look,

01:29:06.001 --> 01:29:06.701
there's no free

01:29:06.702 --> 01:29:07.781
lunch." Yes.

01:29:08.731 --> 01:29:09.602
On a $5 million

01:29:09.852 --> 01:29:11.022
portfolio, you might

01:29:11.022 --> 01:29:12.872
pay 180,000 to, to

01:29:12.872 --> 01:29:14.121
hedge it for a year.

01:29:14.702 --> 01:29:15.722
And but you have to

01:29:15.731 --> 01:29:16.571
be willing to pay.

01:29:16.591 --> 01:29:16.921
There's a,

01:29:17.111 --> 01:29:18.051
it's not free.

01:29:18.331 --> 01:29:18.951
Everybody thinks

01:29:18.952 --> 01:29:19.691
everything's free.

01:29:19.961 --> 01:29:21.081
So no matter what you

01:29:21.081 --> 01:29:22.261
do, whether you, if

01:29:22.261 --> 01:29:23.412
you stay invested,

01:29:23.632 --> 01:29:24.351
you may have the

01:29:24.371 --> 01:29:26.421
cost of concern, of

01:29:26.422 --> 01:29:27.251
watching things go

01:29:27.251 --> 01:29:28.762
down and wondering,

01:29:29.922 --> 01:29:30.551
when you read all

01:29:30.551 --> 01:29:31.161
these articles, is

01:29:31.161 --> 01:29:32.491
it gonna go back  or

01:29:32.492 --> 01:29:33.501
what's gonna happen?

01:29:33.861 --> 01:29:34.611
With a hedge, you

01:29:34.611 --> 01:29:35.312
may not be happy

01:29:35.312 --> 01:29:36.091
with the hedge.

01:29:36.312 --> 01:29:38.701
With a short-term

01:29:38.922 --> 01:29:40.771
going to cash, now

01:29:40.772 --> 01:29:41.891
you're, you have

01:29:42.961 --> 01:29:43.831
gambler's fallacy.

01:29:43.981 --> 01:29:46.311
Okay  oh  I should,

01:29:46.331 --> 01:29:46.781
now am I gonna

01:29:46.781 --> 01:29:47.591
get back in now?

01:29:47.591 --> 01:29:48.301
I'm not gonna get

01:29:48.301 --> 01:29:49.621
back in until it's

01:29:49.632 --> 01:29:51.152
lower, because then

01:29:51.152 --> 01:29:52.121
I have to make money.

01:29:52.382 --> 01:29:53.012
And then you're

01:29:53.012 --> 01:29:53.811
in this kind of

01:29:53.812 --> 01:29:55.441
circular logic of-

01:29:55.441 --> 01:29:55.481
You're in a trap

01:29:55.481 --> 01:29:56.231
…  you're in a trap.

01:29:56.242 --> 01:29:56.862
You're in a

01:29:56.862 --> 01:29:57.291
trap.

01:29:58.161 --> 01:29:58.791
And then you get,

01:29:58.791 --> 01:29:59.382
look at precious

01:29:59.411 --> 01:30:00.161
metals, and

01:30:00.161 --> 01:30:01.161
it's going down.

01:30:01.171 --> 01:30:02.441
And if you look at

01:30:03.341 --> 01:30:04.241
the past, like you've

01:30:04.242 --> 01:30:05.792
noted  when the stock

01:30:05.792 --> 01:30:06.492
market debt goes

01:30:06.492 --> 01:30:07.891
down, the precious

01:30:07.901 --> 01:30:08.881
metals go down.

01:30:09.291 --> 01:30:10.161
And if you look at

01:30:10.171 --> 01:30:12.252
Rambus, there's the

01:30:12.252 --> 01:30:13.201
potential for the,

01:30:13.621 --> 01:30:14.241
for there to be

01:30:14.252 --> 01:30:15.441
support below, but

01:30:15.441 --> 01:30:15.971
for, in the near

01:30:15.972 --> 01:30:16.611
term, for it to go

01:30:16.612 --> 01:30:17.241
down a little bit,

01:30:17.241 --> 01:30:17.721
I think, if what

01:30:17.722 --> 01:30:18.621
it, what I read,

01:30:18.621 --> 01:30:19.131
if I understood

01:30:19.131 --> 01:30:19.731
what you read.

01:30:20.121 --> 01:30:21.221
So you have to live

01:30:21.231 --> 01:30:23.241
with the volatility

01:30:23.241 --> 01:30:23.921
of that and know

01:30:23.922 --> 01:30:24.702
why you're holding

01:30:24.702 --> 01:30:26.932
it, which is a hedge

01:30:26.932 --> 01:30:27.711
against inflation.

01:30:28.032 --> 01:30:28.761
And then precious

01:30:28.782 --> 01:30:29.742
metals also brings

01:30:29.742 --> 01:30:31.372
in the dollar,

01:30:31.372 --> 01:30:31.771
the strength

01:30:31.771 --> 01:30:32.502
of the dollar.

01:30:32.681 --> 01:30:33.612
So to the extent the

01:30:33.612 --> 01:30:34.671
dollar is dominant

01:30:34.672 --> 01:30:36.542
but dangerous, it

01:30:36.581 --> 01:30:38.161
puts a, a lag, it

01:30:38.161 --> 01:30:40.041
puts an impediment to

01:30:40.041 --> 01:30:40.992
gold and silver going

01:30:40.992 --> 01:30:41.551
through the roof,

01:30:41.562 --> 01:30:42.101
'cause they trade

01:30:42.101 --> 01:30:42.952
against dollars.

01:30:43.471 --> 01:30:43.961
It's not that

01:30:43.961 --> 01:30:44.791
they can't go.

01:30:44.812 --> 01:30:45.342
So  there's

01:30:45.342 --> 01:30:45.811
a lot there.

01:30:45.812 --> 01:30:46.081
So what are

01:30:46.081 --> 01:30:46.681
your comments?

01:30:47.291 --> 01:30:48.001
One thing to

01:30:48.002 --> 01:30:49.121
think about is if

01:30:49.121 --> 01:30:49.581
you're gonna go

01:30:49.581 --> 01:30:50.341
to high-quality

01:30:50.341 --> 01:30:51.221
fixed income-

01:30:54.710 --> 01:30:54.750
You better know

01:30:54.750 --> 01:30:55.400
what you're doing

01:30:55.400 --> 01:30:55.940
when it comes to

01:30:55.940 --> 01:30:57.010
underwriting credits.

01:30:58.490 --> 01:30:59.480
'Cause if we get into

01:30:59.480 --> 01:31:01.880
a real patch    if

01:31:01.880 --> 01:31:02.960
a railroad goes

01:31:02.960 --> 01:31:04.030
down in value,

01:31:04.180 --> 01:31:04.880
eventually it's

01:31:04.880 --> 01:31:05.769
gonna come back up.

01:31:06.830 --> 01:31:07.260
Cause it's

01:31:07.260 --> 01:31:08.129
gonna last.

01:31:09.280 --> 01:31:10.110
I dare say

01:31:10.119 --> 01:31:11.199
Union Pacific is

01:31:11.199 --> 01:31:11.929
gonna be there.

01:31:14.462 --> 01:31:15.382
They're bonds

01:31:15.382 --> 01:31:17.062
when    I don't…

01:31:17.672 --> 01:31:19.022
They might not last.

01:31:19.732 --> 01:31:20.192
Yes.

01:31:21.222 --> 01:31:22.342
So- And then  a,

01:31:22.342 --> 01:31:23.442
a default option

01:31:23.451 --> 01:31:24.031
s- for some

01:31:24.031 --> 01:31:24.871
people is T-bills.

01:31:24.871 --> 01:31:25.411
I know you have

01:31:25.861 --> 01:31:26.312
the reasons

01:31:26.312 --> 01:31:27.031
not to do that.

01:31:27.031 --> 01:31:28.201
But you're, you get

01:31:28.201 --> 01:31:29.751
down to  a limited

01:31:29.751 --> 01:31:30.661
range of choices.

01:31:31.781 --> 01:31:32.211
I know.

01:31:32.212 --> 01:31:33.701
And    and I'll just

01:31:33.701 --> 01:31:34.611
say this because

01:31:34.642 --> 01:31:35.871
this is my shtick.

01:31:36.302 --> 01:31:37.361
I was raised never

01:31:37.361 --> 01:31:38.341
to finance my enemy.

01:31:38.341 --> 01:31:38.761
Yesterday, I

01:31:38.761 --> 01:31:39.271
was talking to

01:31:39.271 --> 01:31:40.131
Paulie Tomme on

01:31:40.132 --> 01:31:41.211
Financial Rebellion.

01:31:41.851 --> 01:31:42.861
And CHD is

01:31:42.861 --> 01:31:44.181
helping soldiers.

01:31:44.611 --> 01:31:45.491
They wanna deploy

01:31:45.491 --> 01:31:45.931
them to the

01:31:45.941 --> 01:31:48.392
Middle East, and

01:31:48.451 --> 01:31:49.441
they're insisting

01:31:49.441 --> 01:31:49.971
on giving them

01:31:49.972 --> 01:31:51.161
anthrax vaccines,

01:31:51.172 --> 01:31:52.131
which is a killer.

01:31:52.211 --> 01:31:52.591
Yeah.

01:31:53.242 --> 01:31:54.882
I don't know why you

01:31:54.882 --> 01:31:55.681
would wanna poison

01:31:55.681 --> 01:31:56.281
a soldier you're

01:31:56.281 --> 01:31:57.141
gonna send into the

01:31:57.141 --> 01:31:58.081
Middle Eastern heat.

01:31:59.182 --> 01:31:59.892
Why w- why do

01:31:59.892 --> 01:32:00.352
you think that's

01:32:00.352 --> 01:32:00.971
a good idea?

01:32:00.981 --> 01:32:01.001
Yeah.

01:32:01.011 --> 01:32:01.311
But

01:32:03.601 --> 01:32:04.051
I don't wanna

01:32:04.051 --> 01:32:04.741
finance that.

01:32:05.101 --> 01:32:05.421
Yes.

01:32:06.132 --> 01:32:07.021
So I'm not

01:32:07.021 --> 01:32:07.732
financing that.

01:32:07.732 --> 01:32:08.581
I would much rather

01:32:08.581 --> 01:32:10.781
have  a, a high

01:32:10.781 --> 01:32:11.881
quality fixed income

01:32:11.882 --> 01:32:13.031
of a municipality

01:32:13.891 --> 01:32:15.111
or a, you know-

01:32:15.121 --> 01:32:15.901
a good company.

01:32:16.181 --> 01:32:16.351
Yes.

01:32:17.541 --> 01:32:18.641
But that means you've

01:32:18.651 --> 01:32:19.622
gotta take the time

01:32:19.622 --> 01:32:21.012
or have a financial

01:32:21.012 --> 01:32:22.121
pl- planner who's,

01:32:22.251 --> 01:32:23.161
or professional

01:32:23.161 --> 01:32:23.661
who's willing to

01:32:23.661 --> 01:32:24.291
take the time.

01:32:24.401 --> 01:32:24.691
Yes.

01:32:25.011 --> 01:32:25.611
And by the way,

01:32:25.611 --> 01:32:26.401
when you do that,

01:32:26.401 --> 01:32:27.651
and you get into,

01:32:28.411 --> 01:32:29.341
depending on what

01:32:29.341 --> 01:32:29.892
you're looking at,

01:32:29.901 --> 01:32:30.962
now corporate takes

01:32:30.962 --> 01:32:32.451
away the, some of

01:32:32.451 --> 01:32:33.221
it, but people look

01:32:33.221 --> 01:32:34.701
at munis, and then

01:32:34.701 --> 01:32:35.571
they start looking

01:32:35.571 --> 01:32:36.972
at, "I don't want

01:32:39.011 --> 01:32:39.932
Penn Medical System.

01:32:40.422 --> 01:32:42.621
I don't want City

01:32:42.621 --> 01:32:43.582
of Philadelphia,"

01:32:43.602 --> 01:32:44.841
or whatev-  it just

01:32:44.841 --> 01:32:45.692
gets into all these

01:32:45.692 --> 01:32:46.581
specifics, and then

01:32:46.632 --> 01:32:47.451
people start looking

01:32:47.451 --> 01:32:48.611
at that and telling

01:32:48.611 --> 01:32:49.111
me everything- Right

01:32:49.111 --> 01:32:49.861
that they don't want.

01:32:50.172 --> 01:32:50.941
So eventually,

01:32:50.941 --> 01:32:51.341
you have to

01:32:51.341 --> 01:32:52.071
make a choice.

01:32:54.461 --> 01:32:54.988
I don't know.

01:32:54.988 --> 01:32:55.691
And I've always

01:32:55.691 --> 01:32:56.161
been able to

01:32:56.161 --> 01:32:57.351
find municipals.

01:32:58.291 --> 01:32:59.101
I've always been able

01:32:59.102 --> 01:33:00.042
to find municipals.

01:33:00.102 --> 01:33:00.542
Okay.

01:33:00.992 --> 01:33:01.821
So precious

01:33:01.821 --> 01:33:02.611
metals is there.

01:33:02.611 --> 01:33:03.111
It's always

01:33:03.111 --> 01:33:03.761
an option.

01:33:04.801 --> 01:33:05.631
And so for a

01:33:05.632 --> 01:33:06.351
percentage, it's

01:33:06.352 --> 01:33:07.181
always an option.

01:33:07.641 --> 01:33:09.391
Where I find talented

01:33:09.391 --> 01:33:10.251
entrepreneurs

01:33:10.251 --> 01:33:11.691
or investors who

01:33:12.301 --> 01:33:13.462
stay in one place

01:33:13.462 --> 01:33:14.161
long enough-

01:33:15.161 --> 01:33:15.972
There's plenty

01:33:15.972 --> 01:33:16.831
of options for

01:33:16.831 --> 01:33:17.371
resilience.

01:33:17.371 --> 01:33:18.011
I'm always telling

01:33:18.011 --> 01:33:18.731
a story of the old

01:33:18.731 --> 01:33:19.971
client I had who was

01:33:19.971 --> 01:33:20.691
complaining about

01:33:20.691 --> 01:33:21.701
her water bill going

01:33:21.701 --> 01:33:22.531
up and her stock

01:33:22.531 --> 01:33:23.762
yields not giving

01:33:23.762 --> 01:33:24.541
her what she wanted.

01:33:24.962 --> 01:33:25.742
I said, "It's simple.

01:33:25.751 --> 01:33:26.421
Sell your stock

01:33:26.421 --> 01:33:27.191
and build a well."

01:33:27.391 --> 01:33:27.681
Yeah.

01:33:28.761 --> 01:33:30.221
The more you can

01:33:30.231 --> 01:33:31.451
shrink your balance

01:33:31.451 --> 01:33:32.431
sheet and your

01:33:32.432 --> 01:33:33.562
income statement

01:33:34.081 --> 01:33:35.291
by investing in

01:33:35.292 --> 01:33:36.421
your infrastructure

01:33:36.941 --> 01:33:37.521
so that your

01:33:37.521 --> 01:33:38.451
need for cash

01:33:38.451 --> 01:33:40.071
goes    down, down-

01:33:40.521 --> 01:33:41.941
That is the best way

01:33:41.941 --> 01:33:43.082
to deal with either

01:33:43.082 --> 01:33:44.482
the risk of inflation

01:33:44.482 --> 01:33:45.411
or deflation.

01:33:45.901 --> 01:33:46.091
Yeah.

01:33:46.091 --> 01:33:47.622
You just  you just

01:33:47.622 --> 01:33:49.482
don't…  There's

01:33:49.482 --> 01:33:50.341
an inside game, and

01:33:50.341 --> 01:33:51.091
there's an outside

01:33:51.091 --> 01:33:52.032
game, and if you

01:33:52.032 --> 01:33:53.381
shrink those, you're

01:33:53.382 --> 01:33:54.392
less dependent

01:33:54.401 --> 01:33:55.452
on the insiders.

01:33:56.204 --> 01:33:57.224
Both the income and

01:33:57.224 --> 01:33:58.024
the expense side.

01:33:58.024 --> 01:33:59.044
You look at, can

01:33:59.044 --> 01:33:59.974
I increase income

01:33:59.974 --> 01:34:00.824
or reduce expense?

01:34:00.824 --> 01:34:01.314
And I'll just

01:34:01.744 --> 01:34:02.964
share that  I

01:34:02.974 --> 01:34:03.814
da- we donate.

01:34:03.834 --> 01:34:05.344
My family  drilled

01:34:05.344 --> 01:34:06.674
a well and came off

01:34:06.674 --> 01:34:07.453
of public water.

01:34:07.484 --> 01:34:08.413
We live in suburbia.

01:34:09.254 --> 01:34:10.113
But to do that,

01:34:10.134 --> 01:34:11.154
we had to navigate

01:34:11.163 --> 01:34:11.874
the laws and the

01:34:11.874 --> 01:34:12.543
rules and all this

01:34:12.544 --> 01:34:13.264
stuff, but  we

01:34:13.264 --> 01:34:13.764
were successful

01:34:13.764 --> 01:34:14.344
in doing it.

01:34:14.893 --> 01:34:15.614
It took a big

01:34:15.614 --> 01:34:16.563
investment of time,

01:34:16.573 --> 01:34:17.633
but you invested your

01:34:17.633 --> 01:34:18.543
time and your money.

01:34:18.584 --> 01:34:18.814
Yeah.

01:34:19.014 --> 01:34:20.193
So there's always

01:34:20.194 --> 01:34:21.003
local investment,

01:34:21.004 --> 01:34:21.593
and you just

01:34:21.594 --> 01:34:22.724
require patience,

01:34:22.724 --> 01:34:23.333
and you have to be

01:34:23.334 --> 01:34:24.223
good at networking

01:34:24.223 --> 01:34:24.663
and good at

01:34:24.663 --> 01:34:25.743
underwriting people.

01:34:27.283 --> 01:34:28.303
There's always that.

01:34:28.383 --> 01:34:30.724
And  I think for

01:34:30.734 --> 01:34:31.734
me, the big issue

01:34:31.734 --> 01:34:32.523
is you've got to

01:34:32.523 --> 01:34:34.163
decide, do you…

01:34:35.243 --> 01:34:37.543
There is a,  And

01:34:37.543 --> 01:34:38.554
I'll take this quote.

01:34:38.554 --> 01:34:38.943
It's from a

01:34:38.944 --> 01:34:40.233
wonderful new book

01:34:40.243 --> 01:34:41.303
by Vera Sharav.

01:34:42.784 --> 01:34:43.293
Let me read

01:34:43.293 --> 01:34:43.723
it to you.

01:34:43.733 --> 01:34:44.554
"It's one thing

01:34:44.554 --> 01:34:45.153
for the media,

01:34:45.183 --> 01:34:45.833
the police, the

01:34:45.834 --> 01:34:46.574
judiciary, and the

01:34:46.574 --> 01:34:47.443
killers themselves

01:34:47.444 --> 01:34:48.333
to commit terrible

01:34:48.334 --> 01:34:48.993
acts without our

01:34:48.993 --> 01:34:50.113
knowledge or consent.

01:34:50.823 --> 01:34:51.674
It is quite another

01:34:51.674 --> 01:34:52.433
matter, with grave

01:34:52.433 --> 01:34:53.373
repercussions in the

01:34:53.374 --> 01:34:54.473
realm of psychodrama,

01:34:54.473 --> 01:34:55.243
public ritual,

01:34:55.243 --> 01:34:56.053
and advanced mind

01:34:56.053 --> 01:34:56.794
control, when these

01:34:56.794 --> 01:34:57.643
crimes are committed

01:34:57.653 --> 01:34:58.784
with our consent."

01:34:59.662 --> 01:35:00.502
It is an ancient

01:35:00.512 --> 01:35:01.202
rule of both the

01:35:01.202 --> 01:35:02.042
moral and common

01:35:02.042 --> 01:35:02.992
law that silence

01:35:02.992 --> 01:35:03.922
connotes consent.

01:35:04.322 --> 01:35:05.002
Silence and a

01:35:05.002 --> 01:35:05.932
lack of meaningful

01:35:05.932 --> 01:35:07.122
action constitute

01:35:07.132 --> 01:35:08.272
consents in the face

01:35:08.272 --> 01:35:09.052
of these crimes.

01:35:09.522 --> 01:35:10.642
When we finance

01:35:10.642 --> 01:35:11.462
this stuff, we

01:35:11.462 --> 01:35:12.262
are consenting.

01:35:13.671 --> 01:35:13.931
Yeah.

01:35:14.612 --> 01:35:16.862
And  it's funny,

01:35:16.912 --> 01:35:18.411
the, our theme this

01:35:18.922 --> 01:35:20.662
quarter, Tim, is on

01:35:20.662 --> 01:35:21.591
student loans, and

01:35:21.592 --> 01:35:22.331
we haven't published

01:35:22.332 --> 01:35:22.891
the piece yet.

01:35:22.902 --> 01:35:22.912
Oh.

01:35:22.912 --> 01:35:23.361
It's quite

01:35:23.361 --> 01:35:24.111
remarkable.

01:35:24.832 --> 01:35:26.291
70% of student loans

01:35:26.291 --> 01:35:27.221
are not being paid.

01:35:27.232 --> 01:35:27.871
The majority of

01:35:27.871 --> 01:35:28.681
students loans are

01:35:28.701 --> 01:35:29.811
people over 50.

01:35:30.441 --> 01:35:31.191
The balances.

01:35:31.261 --> 01:35:32.491
It's   it's so

01:35:32.491 --> 01:35:33.931
horrible, and you,

01:35:33.971 --> 01:35:34.591
if you look at

01:35:34.592 --> 01:35:35.171
what it's done,

01:35:35.171 --> 01:35:36.471
it's so predatory,

01:35:36.471 --> 01:35:37.172
it's criminal.

01:35:37.592 --> 01:35:38.081
And what those

01:35:38.081 --> 01:35:39.091
people over 50 may

01:35:39.092 --> 01:35:39.951
not realize is that

01:35:39.952 --> 01:35:40.501
when they reach

01:35:40.502 --> 01:35:41.501
Social Security,

01:35:41.741 --> 01:35:42.551
if those loans are

01:35:42.551 --> 01:35:43.361
not paid off, they

01:35:43.362 --> 01:35:43.981
will garnish your

01:35:43.982 --> 01:35:44.551
Social Security.

01:35:47.081 --> 01:35:47.791
So here's the

01:35:47.791 --> 01:35:48.331
thing, though.

01:35:48.412 --> 01:35:49.332
If you look at how

01:35:49.332 --> 01:35:50.451
much money… I was

01:35:50.612 --> 01:35:52.591
working with  John

01:35:52.611 --> 01:35:53.781
Titus on the, on

01:35:53.791 --> 01:35:54.761
online gambling

01:35:54.761 --> 01:35:55.482
and sort of poly

01:35:55.482 --> 01:35:56.201
market and the

01:35:56.201 --> 01:35:57.012
sports betting.

01:35:57.701 --> 01:35:58.332
If you look at

01:35:58.342 --> 01:35:59.231
all the money we

01:35:59.232 --> 01:36:01.402
spend on online

01:36:01.402 --> 01:36:02.771
gambling, illegal

01:36:02.781 --> 01:36:04.622
gambling, narcotics,

01:36:04.681 --> 01:36:06.322
alcohol- … sugar

01:36:07.132 --> 01:36:08.711
you… On  and on.

01:36:08.721 --> 01:36:08.741
Yeah.

01:36:08.791 --> 01:36:09.511
If we would just

01:36:09.511 --> 01:36:10.801
take half that money-

01:36:11.461 --> 01:36:12.251
And use it to pay

01:36:12.251 --> 01:36:13.071
off the outstanding

01:36:13.071 --> 01:36:13.912
student loans, we

01:36:13.912 --> 01:36:14.971
could retire all

01:36:14.971 --> 01:36:15.491
of them in two

01:36:15.492 --> 01:36:16.161
to four years.

01:36:16.202 --> 01:36:16.472
Yeah.

01:36:16.982 --> 01:36:17.431
I don't doubt that.

01:36:18.541 --> 01:36:19.902
And so I don't

01:36:19.902 --> 01:36:20.612
wanna just hear

01:36:20.612 --> 01:36:21.281
that Congress is

01:36:21.342 --> 01:36:22.891
c-  Congress is

01:36:22.891 --> 01:36:23.611
beyond corrupt.

01:36:23.702 --> 01:36:24.001
They are-

01:36:24.001 --> 01:36:24.631
Yes … traitors.

01:36:24.721 --> 01:36:25.091
Yes.

01:36:25.562 --> 01:36:26.051
So I'm…

01:36:26.092 --> 01:36:26.891
I have nothing

01:36:26.891 --> 01:36:28.002
good to say about

01:36:28.002 --> 01:36:29.732
the refusal to

01:36:29.741 --> 01:36:31.072
return bankruptcy

01:36:31.072 --> 01:36:31.832
protections and

01:36:31.832 --> 01:36:32.621
normal consumer

01:36:32.621 --> 01:36:33.341
protections to

01:36:33.342 --> 01:36:34.091
student loans.

01:36:34.101 --> 01:36:34.131
Yes.

01:36:34.251 --> 01:36:34.842
Nothing good to

01:36:34.842 --> 01:36:35.481
say about that.

01:36:35.531 --> 01:36:35.741
Yeah.

01:36:36.031 --> 01:36:37.071
But the reality is

01:36:37.081 --> 01:36:38.021
we as a culture and

01:36:38.022 --> 01:36:38.982
a civilization have

01:36:38.982 --> 01:36:39.942
the ability to fix

01:36:39.942 --> 01:36:40.711
this without them.

01:36:41.141 --> 01:36:41.491
Yes.

01:36:42.061 --> 01:36:42.332
And we're

01:36:42.332 --> 01:36:42.991
not doing it.

01:36:43.342 --> 01:36:43.682
Yeah.

01:36:45.071 --> 01:36:46.161
If you have somebody

01:36:46.162 --> 01:36:47.001
in your family or

01:36:47.001 --> 01:36:48.961
community…  We

01:36:48.961 --> 01:36:49.951
see stories of

01:36:49.952 --> 01:36:50.882
families literally

01:36:50.882 --> 01:36:51.801
committing suicide

01:36:51.801 --> 01:36:52.501
because they can't

01:36:52.501 --> 01:36:53.431
stand it anymore.

01:36:54.541 --> 01:36:55.541
If that's going on in

01:36:55.961 --> 01:36:56.941
your family or your

01:36:56.941 --> 01:36:57.781
community and you

01:36:57.791 --> 01:36:59.162
have the financial

01:36:59.162 --> 01:36:59.991
wherewithal to do

01:36:59.991 --> 01:37:00.811
something about it-

01:37:01.261 --> 01:37:01.591
Yeah

01:37:02.321 --> 01:37:02.731
…   We should

01:37:02.741 --> 01:37:03.411
be doing it.

01:37:03.592 --> 01:37:05.061
Anyway, I wanted to

01:37:05.061 --> 01:37:05.811
show you… Okay,

01:37:05.811 --> 01:37:06.631
so let's look at

01:37:06.631 --> 01:37:09.490
the next slide So

01:37:09.880 --> 01:37:11.070
here's the question.

01:37:11.330 --> 01:37:12.660
I'm listening to

01:37:12.660 --> 01:37:13.590
you talking about

01:37:13.590 --> 01:37:14.210
the fact that all

01:37:14.210 --> 01:37:15.260
my money is going

01:37:15.630 --> 01:37:16.570
through index funds

01:37:16.600 --> 01:37:17.800
into data centers,

01:37:18.399 --> 01:37:20.250
or private equity

01:37:20.260 --> 01:37:21.400
is getting its

01:37:21.400 --> 01:37:23.140
nose into the 401or

01:37:23.180 --> 01:37:23.989
could after this

01:37:23.989 --> 01:37:24.909
rule goes forward.

01:37:24.920 --> 01:37:25.820
We haven't seen

01:37:26.370 --> 01:37:27.040
the Department

01:37:27.040 --> 01:37:28.039
of Labor…

01:37:28.690 --> 01:37:29.570
The Department of

01:37:29.570 --> 01:37:30.559
Labor got it, a

01:37:30.580 --> 01:37:34.250
storm    of comments

01:37:34.340 --> 01:37:35.240
against what they're

01:37:35.240 --> 01:37:36.300
proposing to do.

01:37:36.709 --> 01:37:37.039
Yeah.

01:37:38.209 --> 01:37:39.790
So I've got IRAs

01:37:39.949 --> 01:37:40.999
monies rolling into

01:37:41.000 --> 01:37:42.020
data centers in the

01:37:42.020 --> 01:37:43.529
control grid or going

01:37:43.529 --> 01:37:44.379
into private equity

01:37:44.380 --> 01:37:45.599
or private credit.

01:37:46.649 --> 01:37:49.660
401s  potentially

01:37:49.849 --> 01:37:51.020
going into both.

01:37:51.599 --> 01:37:53.069
Now pension funds

01:37:53.110 --> 01:37:54.289
in real trouble over

01:37:54.290 --> 01:37:55.120
the private equity,

01:37:55.120 --> 01:37:56.039
private credit.

01:37:57.030 --> 01:37:58.049
We talked earlier

01:37:58.759 --> 01:38:00.239
this week or last

01:38:00.239 --> 01:38:01.539
week about what's

01:38:01.540 --> 01:38:01.980
happening with

01:38:01.989 --> 01:38:02.700
the Pennsylvania

01:38:02.700 --> 01:38:03.460
teachers.

01:38:03.979 --> 01:38:04.089
Yes.

01:38:05.209 --> 01:38:06.039
The question for

01:38:06.040 --> 01:38:07.189
anybody is what

01:38:07.189 --> 01:38:07.960
can they do?

01:38:08.450 --> 01:38:09.229
So let's start

01:38:09.229 --> 01:38:10.069
with IRAs.

01:38:10.110 --> 01:38:11.139
If I'm in an IRA,

01:38:11.139 --> 01:38:12.179
and I have at

01:38:12.180 --> 01:38:14.270
least 100,000, I

01:38:14.270 --> 01:38:15.310
can do a custom s-

01:38:15.389 --> 01:38:17.749
index fund at some

01:38:17.750 --> 01:38:18.400
of the brokerage

01:38:18.409 --> 01:38:19.040
firms, right?

01:38:19.129 --> 01:38:19.749
Absolutely.

01:38:19.970 --> 01:38:20.460
Yes.

01:38:20.809 --> 01:38:21.429
And that means

01:38:21.430 --> 01:38:22.849
that you can… So

01:38:22.849 --> 01:38:24.449
instead of doing…

01:38:24.489 --> 01:38:25.609
It saves time

01:38:25.610 --> 01:38:26.199
because you don't

01:38:26.199 --> 01:38:27.389
have to investigate

01:38:27.830 --> 01:38:28.750
every company

01:38:28.760 --> 01:38:29.669
that you like.

01:38:29.879 --> 01:38:31.109
You identify the

01:38:31.229 --> 01:38:31.899
companies that you

01:38:31.900 --> 01:38:32.840
don't like, and you

01:38:32.840 --> 01:38:33.629
can take those out

01:38:33.629 --> 01:38:34.280
of the portfolio.

01:38:34.819 --> 01:38:35.119
So you could

01:38:35.129 --> 01:38:35.859
plausibly have

01:38:35.930 --> 01:38:36.879
a large company

01:38:36.879 --> 01:38:37.659
portfolio, and it

01:38:37.669 --> 01:38:40.529
has Meta and Palantir

01:38:40.529 --> 01:38:41.670
and whatever, and

01:38:41.680 --> 01:38:42.830
you can remove those

01:38:42.830 --> 01:38:43.579
from the portfolio

01:38:43.580 --> 01:38:44.630
and keep the rest.

01:38:45.259 --> 01:38:46.180
And the IRA, the

01:38:46.180 --> 01:38:46.850
reason we're saying

01:38:46.850 --> 01:38:47.309
that is 'cause

01:38:47.309 --> 01:38:48.019
that's within a

01:38:48.019 --> 01:38:48.909
person's control.

01:38:48.919 --> 01:38:49.749
It's not… You

01:38:49.750 --> 01:38:50.650
don't depend on

01:38:50.959 --> 01:38:51.710
the company to

01:38:51.710 --> 01:38:52.379
make the decisions.

01:38:54.069 --> 01:38:55.469
Now, what  if s-

01:38:55.489 --> 01:38:56.200
what some people

01:38:56.200 --> 01:38:57.470
tell me, "I talked

01:38:57.470 --> 01:38:58.239
to my financial

01:38:58.239 --> 01:38:59.060
planner, and they

01:38:59.060 --> 01:39:00.010
don't wanna do this,"

01:39:01.059 --> 01:39:02.169
or, "My investment

01:39:02.169 --> 01:39:03.049
advisor, they don't

01:39:03.049 --> 01:39:03.780
wanna do this.

01:39:03.780 --> 01:39:04.340
They say this

01:39:04.349 --> 01:39:04.819
is wrong."

01:39:05.309 --> 01:39:07.529
you have to make

01:39:07.529 --> 01:39:08.269
a decision there.

01:39:08.629 --> 01:39:09.619
You can do it.

01:39:09.629 --> 01:39:10.879
I-  if all you're

01:39:10.889 --> 01:39:11.819
doing with the

01:39:11.819 --> 01:39:12.640
investment advisor

01:39:12.640 --> 01:39:13.459
is managing in

01:39:13.459 --> 01:39:14.739
index funds, you can

01:39:14.739 --> 01:39:15.439
do that yourself.

01:39:16.059 --> 01:39:18.530
If… And you can do

01:39:18.590 --> 01:39:19.830
the direct indexing

01:39:19.849 --> 01:39:21.459
at  at one… I

01:39:21.459 --> 01:39:22.029
know that you can

01:39:22.029 --> 01:39:22.949
do it out of Schwab.

01:39:23.510 --> 01:39:24.339
Which is a

01:39:24.340 --> 01:39:25.629
retail-facing…

01:39:25.659 --> 01:39:26.089
The reason I

01:39:26.090 --> 01:39:27.220
mention, it's not

01:39:27.220 --> 01:39:27.819
to promote their

01:39:27.819 --> 01:39:28.519
services, but they

01:39:28.519 --> 01:39:31.189
have a retail-facing

01:39:31.189 --> 01:39:31.949
service.

01:39:32.469 --> 01:39:33.539
So you can do

01:39:33.540 --> 01:39:36.479
that direct n-

01:39:36.480 --> 01:39:37.810
and you do have to

01:39:37.810 --> 01:39:38.669
educate yourself

01:39:38.669 --> 01:39:39.719
to some degree.

01:39:40.489 --> 01:39:41.239
But if you spend

01:39:41.239 --> 01:39:41.869
the time, it's

01:39:41.889 --> 01:39:43.939
not an inordinate

01:39:43.939 --> 01:39:44.809
amount of time that

01:39:44.809 --> 01:39:45.409
you would do to

01:39:45.419 --> 01:39:46.729
vet every company.

01:39:47.370 --> 01:39:48.460
And it is possible.

01:39:48.529 --> 01:39:50.109
So I  it's not easy

01:39:52.955 --> 01:39:53.335
it's not-

01:39:53.585 --> 01:39:54.455
Here, I'll tell

01:39:54.455 --> 01:39:55.106
you a secret.

01:39:55.455 --> 01:39:56.726
When I was working

01:39:56.726 --> 01:39:57.295
with clients

01:39:57.295 --> 01:39:58.076
in Switzerland-

01:39:59.076 --> 01:39:59.896
Or they had money,

01:39:59.896 --> 01:40:00.755
they were US, but

01:40:00.755 --> 01:40:01.356
they had money-  in

01:40:01.356 --> 01:40:03.016
Switzerland, and the

01:40:03.096 --> 01:40:04.425
Swiss manager didn't

01:40:04.425 --> 01:40:05.505
wanna use our screen.

01:40:07.575 --> 01:40:08.165
I would say it's

01:40:08.166 --> 01:40:08.765
real simple.

01:40:08.785 --> 01:40:09.855
No large caps

01:40:09.885 --> 01:40:10.686
and no pharma.

01:40:11.525 --> 01:40:11.875
Yeah.

01:40:12.255 --> 01:40:13.455
Now, if you do that

01:40:13.455 --> 01:40:14.165
in Switzerland,

01:40:14.165 --> 01:40:14.875
what you get is

01:40:14.875 --> 01:40:16.035
you get a huge,

01:40:16.435 --> 01:40:17.425
broad-based group

01:40:17.435 --> 01:40:19.906
of Swiss  m-  mid

01:40:19.906 --> 01:40:21.235
caps and small caps

01:40:21.236 --> 01:40:21.965
that are excellent.

01:40:22.185 --> 01:40:22.415
Yeah.

01:40:22.415 --> 01:40:22.915
And have good

01:40:22.915 --> 01:40:24.015
dividends, right?

01:40:24.935 --> 01:40:26.205
And  you'll get

01:40:26.205 --> 01:40:27.146
some stinkers, but

01:40:27.146 --> 01:40:28.145
it's not too bad.

01:40:28.665 --> 01:40:29.085
Yes.

01:40:29.106 --> 01:40:29.486
You definitely

01:40:29.656 --> 01:40:31.015
reduce by, by not,

01:40:31.025 --> 01:40:31.665
by getting out of

01:40:31.665 --> 01:40:32.335
just large cap.

01:40:32.365 --> 01:40:33.225
And by the way,

01:40:33.476 --> 01:40:34.646
small companies and

01:40:34.646 --> 01:40:35.656
value companies,

01:40:35.885 --> 01:40:36.875
over longer periods

01:40:36.875 --> 01:40:38.055
of time, outperform

01:40:38.075 --> 01:40:38.475
the big companies.

01:40:38.805 --> 01:40:39.305
Yeah, that's what

01:40:39.305 --> 01:40:39.966
we just showed.

01:40:39.966 --> 01:40:40.215
Yeah.

01:40:40.265 --> 01:40:40.855
We just showed the

01:40:40.855 --> 01:40:41.605
small and medium

01:40:41.605 --> 01:40:42.545
caps outperformed.

01:40:42.595 --> 01:40:42.955
Yes.

01:40:43.025 --> 01:40:43.475
And one of the

01:40:43.476 --> 01:40:44.025
reasons they

01:40:44.025 --> 01:40:44.846
outperform is the

01:40:44.846 --> 01:40:46.125
big guys come  and h-

01:40:46.345 --> 01:40:47.255
acquire them, and you

01:40:47.255 --> 01:40:48.195
get a big premium.

01:40:48.505 --> 01:40:48.975
Yes.

01:40:50.105 --> 01:40:50.515
But then they'll

01:40:50.515 --> 01:40:51.275
leave the small

01:40:51.275 --> 01:40:52.095
company fund and go

01:40:52.095 --> 01:40:52.805
into the big company

01:40:52.805 --> 01:40:53.365
fund, and you won't

01:40:53.365 --> 01:40:53.755
own them anymore.

01:40:54.625 --> 01:40:55.225
But there's also

01:40:55.226 --> 01:40:56.805
something that,

01:40:56.885 --> 01:40:58.866
that  you often run

01:40:58.866 --> 01:40:59.885
into, that I hear

01:40:59.885 --> 01:41:01.006
subscribers run into.

01:41:01.355 --> 01:41:01.895
This is your

01:41:01.895 --> 01:41:03.235
money, right?

01:41:03.446 --> 01:41:04.016
Yes.

01:41:04.615 --> 01:41:05.845
And no one has

01:41:05.845 --> 01:41:06.585
the right to tell

01:41:06.586 --> 01:41:07.425
you what to do

01:41:07.425 --> 01:41:08.175
with your money.

01:41:09.415 --> 01:41:10.125
And you've gotta

01:41:10.126 --> 01:41:10.635
take charge.

01:41:10.665 --> 01:41:11.676
I had one wonderful

01:41:11.676 --> 01:41:13.275
subscriber who,

01:41:13.285 --> 01:41:14.336
remember when all the

01:41:14.336 --> 01:41:15.325
terrible headlines

01:41:15.325 --> 01:41:16.255
about Disney

01:41:16.315 --> 01:41:17.156
were coming out?

01:41:17.205 --> 01:41:17.535
Yeah.

01:41:17.836 --> 01:41:19.225
Just terrible stuff-

01:41:19.235 --> 01:41:19.625
Yeah … of what

01:41:19.626 --> 01:41:20.285
they were up to.

01:41:20.795 --> 01:41:22.225
And she called her

01:41:22.245 --> 01:41:22.795
investment, and

01:41:22.805 --> 01:41:23.936
she had huge gains,

01:41:23.955 --> 01:41:24.575
'cause she'd had the

01:41:24.575 --> 01:41:25.735
Disney stock forever.

01:41:25.805 --> 01:41:26.115
Yeah.

01:41:26.785 --> 01:41:27.405
And they tried to

01:41:27.406 --> 01:41:28.085
say, " you can't

01:41:28.086 --> 01:41:28.755
sell it 'cause it's

01:41:28.755 --> 01:41:29.675
down," or whatever.

01:41:29.775 --> 01:41:32.025
And so  if you've

01:41:32.025 --> 01:41:32.496
ever heard a

01:41:32.496 --> 01:41:33.665
Southern magnolia

01:41:33.665 --> 01:41:34.575
rip an investment

01:41:34.775 --> 01:41:35.425
advisor one- Yeah.

01:41:35.435 --> 01:41:37.845
… she was like, " I

01:41:37.845 --> 01:41:39.644
am not- She's

01:41:39.644 --> 01:41:40.284
a Christian.

01:41:40.294 --> 01:41:40.864
Yes.

01:41:40.874 --> 01:41:41.574
She's like, "I'm

01:41:41.574 --> 01:41:42.574
not staying in this

01:41:42.574 --> 01:41:43.844
demonic company

01:41:43.844 --> 01:41:44.764
one more day."

01:41:46.714 --> 01:41:47.334
It's pretty funny.

01:41:47.434 --> 01:41:48.094
And just to be clear,

01:41:48.103 --> 01:41:48.744
which I think is

01:41:48.754 --> 01:41:49.344
something I've heard

01:41:49.344 --> 01:41:49.964
you say repeatedly,

01:41:50.534 --> 01:41:52.004
is that if you just

01:41:52.013 --> 01:41:53.874
refuse…  Forget

01:41:53.874 --> 01:41:54.644
about all the tax

01:41:54.644 --> 01:41:55.554
benefits, so the IRA.

01:41:55.554 --> 01:41:57.294
Now, you may be

01:41:57.474 --> 01:41:57.954
dealing with a

01:41:57.954 --> 01:41:58.874
situation that you're

01:41:58.874 --> 01:41:59.673
already in, where

01:41:59.673 --> 01:42:00.374
you have an IRA.

01:42:01.413 --> 01:42:02.763
So you can t- deal

01:42:02.763 --> 01:42:03.544
with that in some

01:42:03.554 --> 01:42:04.494
of these situations,

01:42:04.494 --> 01:42:05.184
but if you're going

01:42:05.184 --> 01:42:05.713
down the road and

01:42:05.714 --> 01:42:06.103
you're saying, "I

01:42:06.103 --> 01:42:07.364
have a choice to

01:42:07.364 --> 01:42:08.684
save into the 401or

01:42:08.684 --> 01:42:10.504
not," simplicity

01:42:10.513 --> 01:42:11.193
has a benefit.

01:42:11.193 --> 01:42:12.144
You may give up the

01:42:12.144 --> 01:42:13.444
tax deferral benefits

01:42:13.444 --> 01:42:14.683
or whatever that are

01:42:14.683 --> 01:42:15.583
the traditional way

01:42:15.583 --> 01:42:16.554
of doing things, but

01:42:16.554 --> 01:42:17.613
if you just refuse to

01:42:17.613 --> 01:42:19.184
pl- to, to consider

01:42:19.184 --> 01:42:20.324
the tax consequences

01:42:20.324 --> 01:42:20.834
and just say, "I'm

01:42:20.834 --> 01:42:21.503
gonna save the money

01:42:21.763 --> 01:42:22.354
outside of it."

01:42:22.993 --> 01:42:23.844
But  here's

01:42:23.844 --> 01:42:24.324
the thing.

01:42:24.603 --> 01:42:25.474
Let's say you

01:42:25.503 --> 01:42:26.804
have huge gains

01:42:26.804 --> 01:42:27.513
in a stock.

01:42:28.223 --> 01:42:29.523
Start a donor-advised

01:42:29.523 --> 01:42:30.334
fund, move it

01:42:30.334 --> 01:42:31.103
in, and sell it.

01:42:31.493 --> 01:42:31.823
Yes.

01:42:32.453 --> 01:42:33.014
And that's how

01:42:33.014 --> 01:42:33.634
you fund your

01:42:33.644 --> 01:42:34.434
contributions

01:42:34.434 --> 01:42:35.083
from here on out.

01:42:35.083 --> 01:42:36.423
You just pre-fund-

01:42:36.423 --> 01:42:36.553
Yes … your

01:42:36.563 --> 01:42:38.323
contributions  and…

01:42:38.993 --> 01:42:39.463
That's another

01:42:39.554 --> 01:42:40.053
great thing.

01:42:40.054 --> 01:42:40.593
You have to have

01:42:40.593 --> 01:42:41.513
charitable intent.

01:42:41.964 --> 01:42:42.963
You have to have…

01:42:43.533 --> 01:42:44.133
And to be clear,

01:42:44.134 --> 01:42:44.824
when you put the

01:42:44.833 --> 01:42:45.404
gain into the

01:42:45.404 --> 01:42:46.224
donor-advised fund,

01:42:46.234 --> 01:42:47.214
you don't pay tax,

01:42:47.613 --> 01:42:48.664
and no one pays tax,

01:42:48.664 --> 01:42:49.203
and it eventually

01:42:49.204 --> 01:42:49.924
goes to charity.

01:42:50.433 --> 01:42:50.763
But-

01:42:51.884 --> 01:42:52.134
But yes.

01:42:52.134 --> 01:42:52.843
But you can sell

01:42:52.844 --> 01:42:53.923
it without taxes.

01:42:54.204 --> 01:42:54.863
You don't sell

01:42:54.863 --> 01:42:55.513
it, you give- you

01:42:55.533 --> 01:42:56.824
gift it to the

01:42:56.824 --> 01:42:57.393
donor-advised fund.

01:42:58.424 --> 01:42:59.163
You gift it to

01:42:59.163 --> 01:42:59.873
the donor-advised

01:42:59.874 --> 01:43:00.374
fund, but then

01:43:00.374 --> 01:43:00.483
you can sell it-

01:43:00.483 --> 01:43:00.493
They

01:43:00.493 --> 01:43:01.123
sell it, and

01:43:01.124 --> 01:43:01.303
then there's

01:43:01.374 --> 01:43:01.883
no tax on

01:43:01.883 --> 01:43:01.953
it … the don-

01:43:01.973 --> 01:43:02.233
Yeah.

01:43:02.234 --> 01:43:02.574
Yes.

01:43:02.633 --> 01:43:03.193
Exactly.

01:43:03.204 --> 01:43:03.424
Yes.

01:43:04.133 --> 01:43:04.483
Okay.

01:43:04.993 --> 01:43:05.933
Okay, so let's

01:43:05.933 --> 01:43:07.243
turn to 401.

01:43:07.253 --> 01:43:08.353
This is trickier.

01:43:08.393 --> 01:43:09.513
I'm in a company,

01:43:09.833 --> 01:43:10.573
they're matching

01:43:10.573 --> 01:43:12.663
my investment, and

01:43:12.673 --> 01:43:13.733
they've got a deal

01:43:13.734 --> 01:43:14.933
with whomever who's

01:43:14.933 --> 01:43:16.313
managing their 401.

01:43:16.353 --> 01:43:17.473
How do I stop

01:43:18.734 --> 01:43:19.613
private equity and

01:43:19.613 --> 01:43:20.643
crypto and this crazy

01:43:20.643 --> 01:43:21.343
stuff from going

01:43:21.344 --> 01:43:22.583
into my portfolio?

01:43:23.164 --> 01:43:23.894
How do I stop

01:43:23.894 --> 01:43:24.443
financing the

01:43:24.443 --> 01:43:25.194
data centers?

01:43:26.868 --> 01:43:27.528
Yeah, there's

01:43:27.528 --> 01:43:28.528
two levels of it.

01:43:28.928 --> 01:43:29.548
There's the f-

01:43:29.638 --> 01:43:30.598
the large company

01:43:30.598 --> 01:43:31.378
funds in there

01:43:31.378 --> 01:43:32.268
that would have

01:43:32.268 --> 01:43:33.248
the same situation

01:43:33.248 --> 01:43:34.188
as in the IRA.

01:43:34.408 --> 01:43:35.928
But then more m- on

01:43:35.928 --> 01:43:36.848
top of that is the

01:43:36.848 --> 01:43:37.797
private equity in

01:43:38.168 --> 01:43:38.768
crypto with the rule

01:43:38.768 --> 01:43:40.278
changes with the

01:43:40.278 --> 01:43:41.267
Trump administration

01:43:41.287 --> 01:43:41.868
allowing that

01:43:41.878 --> 01:43:42.397
to go into the

01:43:42.398 --> 01:43:44.318
4- into the 401.

01:43:44.357 --> 01:43:46.288
Now, the 401is mostly

01:43:46.888 --> 01:43:49.198
in, at least so far,

01:43:49.537 --> 01:43:50.687
in what are called

01:43:50.767 --> 01:43:52.658
target date funds and

01:43:52.667 --> 01:43:54.147
sta- and large funds.

01:43:54.148 --> 01:43:55.217
So they're… So

01:43:55.218 --> 01:43:56.107
you have to look

01:43:56.117 --> 01:43:57.827
within that and see.

01:43:58.257 --> 01:43:59.037
And there are large

01:43:59.037 --> 01:43:59.908
company providers,

01:43:59.908 --> 01:44:00.798
so they're generally

01:44:01.018 --> 01:44:02.477
Vanguard, State

01:44:02.478 --> 01:44:03.638
Street, Fidelity

01:44:03.958 --> 01:44:05.088
target date funds.

01:44:05.777 --> 01:44:06.867
And at least so far

01:44:06.867 --> 01:44:07.507
when I've looked in

01:44:07.507 --> 01:44:08.647
there, I haven't seen

01:44:08.647 --> 01:44:09.647
them in there yet,

01:44:09.947 --> 01:44:11.257
but you have to look

01:44:12.017 --> 01:44:13.168
at the individual,

01:44:13.168 --> 01:44:13.877
at the holdings

01:44:13.917 --> 01:44:14.958
underneath the target

01:44:14.958 --> 01:44:16.107
date fund to see

01:44:16.478 --> 01:44:17.317
if that stuff is

01:44:17.318 --> 01:44:18.217
being put in there.

01:44:19.147 --> 01:44:19.818
So it takes an

01:44:19.818 --> 01:44:20.658
extra level of due

01:44:20.658 --> 01:44:22.577
diligence to, to

01:44:22.577 --> 01:44:23.688
find it, at least at

01:44:23.728 --> 01:44:25.207
this current time.

01:44:25.587 --> 01:44:26.137
And it's a, it's…

01:44:26.147 --> 01:44:26.708
You have to keep

01:44:26.708 --> 01:44:27.258
looking at it.

01:44:27.717 --> 01:44:28.588
So what I would like

01:44:28.588 --> 01:44:30.077
to see are people

01:44:30.077 --> 01:44:31.417
who are receiving

01:44:31.427 --> 01:44:32.947
these benefits from

01:44:32.948 --> 01:44:34.517
companies saying,

01:44:34.518 --> 01:44:35.987
"Wait a minute.  I

01:44:35.988 --> 01:44:37.077
don't want my money

01:44:37.097 --> 01:44:40.847
going into  what is a

01:44:40.878 --> 01:44:42.327
serious misallocation

01:44:42.347 --> 01:44:43.227
of capital into

01:44:43.228 --> 01:44:44.157
the control grid."

01:44:44.187 --> 01:44:45.708
And I think

01:44:45.717 --> 01:44:47.457
it's a company's

01:44:47.478 --> 01:44:48.667
responsibility to

01:44:48.667 --> 01:44:49.717
give me options.

01:44:50.618 --> 01:44:51.808
There are attorneys

01:44:51.817 --> 01:44:52.237
out there.

01:44:52.237 --> 01:44:53.268
The  these have

01:44:53.268 --> 01:44:54.518
not been hugely

01:44:54.518 --> 01:44:55.997
prevalent with

01:44:57.507 --> 01:44:59.107
company participants

01:44:59.107 --> 01:45:00.897
suing the plan,

01:45:01.207 --> 01:45:01.798
but there are

01:45:01.798 --> 01:45:02.688
lawyers that do it.

01:45:02.688 --> 01:45:03.377
And the more… I

01:45:03.378 --> 01:45:03.977
will be interested

01:45:03.978 --> 01:45:05.688
to see if this

01:45:05.688 --> 01:45:06.297
stuff comes in.

01:45:06.298 --> 01:45:07.167
It's a violation

01:45:07.167 --> 01:45:07.508
of the prudent

01:45:07.527 --> 01:45:08.197
investor rule, and

01:45:08.207 --> 01:45:08.557
now maybe they're

01:45:08.557 --> 01:45:09.497
gonna redefine that.

01:45:10.147 --> 01:45:11.727
It's, but it's a

01:45:11.728 --> 01:45:13.438
violation of basic

01:45:13.507 --> 01:45:14.647
fiduciary duty that

01:45:14.647 --> 01:45:15.507
the employer has

01:45:15.507 --> 01:45:16.508
to the employees.

01:45:17.027 --> 01:45:18.038
And if this becomes

01:45:18.048 --> 01:45:19.138
widespread enough,

01:45:19.577 --> 01:45:20.027
I don't know

01:45:20.027 --> 01:45:20.487
whether they'll

01:45:20.487 --> 01:45:21.268
change the laws

01:45:21.277 --> 01:45:22.367
to make it legal.

01:45:22.887 --> 01:45:23.378
So then you

01:45:23.378 --> 01:45:24.657
can either not

01:45:24.658 --> 01:45:25.808
participate in it.

01:45:26.277 --> 01:45:28.037
If some 401s you

01:45:28.037 --> 01:45:29.167
cannot roll out

01:45:29.167 --> 01:45:29.847
of unless you're

01:45:29.847 --> 01:45:31.097
retired, but some

01:45:31.467 --> 01:45:32.707
companies you could

01:45:32.717 --> 01:45:33.907
argue then e- if

01:45:33.908 --> 01:45:34.297
you're not gonna

01:45:34.298 --> 01:45:35.327
change any of this,

01:45:35.677 --> 01:45:36.497
then give me the

01:45:36.498 --> 01:45:37.708
ability to do an

01:45:37.717 --> 01:45:39.027
in-service rollover,

01:45:39.037 --> 01:45:40.277
which means roll

01:45:40.278 --> 01:45:41.137
it out of here

01:45:41.147 --> 01:45:41.817
while I'm still

01:45:41.817 --> 01:45:42.507
working for you.

01:45:44.467 --> 01:45:45.237
And then m- then

01:45:45.237 --> 01:45:46.057
you'd be in the IRA

01:45:46.207 --> 01:45:47.418
situation, and then

01:45:47.418 --> 01:45:48.047
you at least have

01:45:48.047 --> 01:45:49.168
some control over

01:45:49.647 --> 01:45:50.368
what you're doing.

01:45:50.368 --> 01:45:51.268
Now, explain what

01:45:51.268 --> 01:45:52.517
an in- in-service

01:45:52.528 --> 01:45:53.487
rollover is.

01:45:53.897 --> 01:45:55.237
In-service means

01:45:55.367 --> 01:45:56.517
tr- in traditional

01:45:56.537 --> 01:45:58.557
plans, you cannot-

01:45:59.584 --> 01:46:00.494
m-move the money

01:46:00.504 --> 01:46:01.844
out of the 401while

01:46:01.844 --> 01:46:02.554
you're still working

01:46:02.554 --> 01:46:03.264
at the company.

01:46:03.744 --> 01:46:05.313
An in-service plan,

01:46:05.334 --> 01:46:06.804
a lot of times it

01:46:06.813 --> 01:46:08.634
just  it allows you

01:46:08.634 --> 01:46:11.134
to roll your 401to

01:46:11.134 --> 01:46:12.453
an outside IRA.

01:46:12.454 --> 01:46:14.004
A lot of times it's

01:46:14.013 --> 01:46:14.884
not for everybody,

01:46:14.884 --> 01:46:15.973
it's just for maybe

01:46:15.974 --> 01:46:16.344
people 50 and over.

01:46:17.544 --> 01:46:18.624
Or for certain

01:46:18.974 --> 01:46:19.563
high-level

01:46:19.563 --> 01:46:20.943
executives or things.

01:46:21.263 --> 01:46:22.204
But the point is,

01:46:22.204 --> 01:46:23.443
there is a mechanism

01:46:23.443 --> 01:46:25.313
there that exists

01:46:25.653 --> 01:46:26.593
that you could argue

01:46:26.593 --> 01:46:28.803
for if the company

01:46:28.813 --> 01:46:29.544
says, " I can't…

01:46:29.553 --> 01:46:30.043
I'm not gonna

01:46:30.093 --> 01:46:31.183
change…" Private

01:46:31.204 --> 01:46:32.033
equity's legal now,

01:46:32.034 --> 01:46:32.513
they changed the

01:46:32.513 --> 01:46:33.983
law and whatever.

01:46:34.443 --> 01:46:35.344
Then  it's a, just

01:46:35.344 --> 01:46:36.374
another tactic

01:46:36.644 --> 01:46:37.603
where you could say,

01:46:38.083 --> 01:46:38.964
"Why don't you give

01:46:38.964 --> 01:46:39.783
us… I wanna have

01:46:39.784 --> 01:46:41.014
the ability, I like

01:46:41.014 --> 01:46:41.663
working for you.

01:46:41.664 --> 01:46:42.683
This is… Other than

01:46:42.683 --> 01:46:44.493
this, I love my job.

01:46:44.493 --> 01:46:45.353
I think you guys,

01:46:45.403 --> 01:46:45.973
we're making a

01:46:45.973 --> 01:46:46.583
good product.

01:46:46.583 --> 01:46:47.563
I like working here.

01:46:48.353 --> 01:46:49.634
Won't you give us

01:46:49.734 --> 01:46:51.703
access to do an

01:46:51.703 --> 01:46:52.723
in-service withdrawal

01:46:52.723 --> 01:46:53.654
and move the money

01:46:53.663 --> 01:46:54.793
out of the 401into

01:46:55.353 --> 01:46:55.983
our own IRA?

01:46:56.473 --> 01:46:57.044
And then we won't

01:46:57.054 --> 01:46:57.603
participate in

01:46:57.603 --> 01:46:58.753
the 401anymore.

01:46:58.883 --> 01:46:59.373
I'll be out of

01:46:59.374 --> 01:46:59.893
your hair and I'll

01:46:59.894 --> 01:47:00.574
stop complaining

01:47:00.583 --> 01:47:00.863
about it."

01:47:02.223 --> 01:47:02.803
Now, will they

01:47:02.804 --> 01:47:03.363
still get the

01:47:03.374 --> 01:47:03.964
match, though?

01:47:03.964 --> 01:47:04.664
Will they still be

01:47:04.933 --> 01:47:05.364
able to save- No,

01:47:05.364 --> 01:47:05.643
then you won't get

01:47:05.643 --> 01:47:06.303
the match anymore.

01:47:07.054 --> 01:47:07.743
Okay, so you'll

01:47:07.743 --> 01:47:08.523
lose the match.

01:47:08.533 --> 01:47:09.143
Yes.

01:47:09.763 --> 01:47:10.163
Okay.

01:47:10.524 --> 01:47:11.224
But you won't have

01:47:11.224 --> 01:47:12.314
a giant tax bill

01:47:12.314 --> 01:47:13.034
by just taking

01:47:13.034 --> 01:47:13.543
the money out.

01:47:15.420 --> 01:47:16.320
It'll be delayed-

01:47:16.370 --> 01:47:16.809
cause it'll still

01:47:16.809 --> 01:47:17.530
be in your IRA.

01:47:18.420 --> 01:47:19.510
This is  a little

01:47:19.510 --> 01:47:20.210
bit forward-thinking.

01:47:20.480 --> 01:47:21.260
There, there's not

01:47:21.260 --> 01:47:21.940
a whole lot of plans

01:47:21.940 --> 01:47:23.070
that offer it, but

01:47:23.070 --> 01:47:24.110
it is a function that

01:47:24.120 --> 01:47:25.330
does exist in some

01:47:25.330 --> 01:47:26.609
plans, and it would

01:47:26.610 --> 01:47:27.550
just be w- another

01:47:27.550 --> 01:47:30.040
tactic  to deal with

01:47:30.040 --> 01:47:31.209
this, but you'd have

01:47:31.209 --> 01:47:32.119
to advocate for it.

01:47:32.119 --> 01:47:32.700
So it's not a

01:47:32.700 --> 01:47:33.320
magic bullet.

01:47:33.320 --> 01:47:33.959
It would take work.

01:47:34.549 --> 01:47:35.389
So I keep quoting

01:47:35.389 --> 01:47:36.339
Curtis Mayfield

01:47:36.340 --> 01:47:37.040
in his album

01:47:37.040 --> 01:47:37.709
New World Order.

01:47:37.709 --> 01:47:38.639
He said, "Sometimes

01:47:38.639 --> 01:47:39.189
it feels like

01:47:39.189 --> 01:47:39.999
there's one way in

01:47:40.000 --> 01:47:40.929
and no way out."

01:47:41.299 --> 01:47:41.549
Yeah.

01:47:41.580 --> 01:47:42.649
And it's like they're

01:47:42.650 --> 01:47:44.669
trying to cycle your

01:47:44.669 --> 01:47:47.999
money into a basket

01:47:48.019 --> 01:47:49.219
where Larry Fink can

01:47:49.219 --> 01:47:51.169
use it to  build the

01:47:51.170 --> 01:47:52.899
control grid and do

01:47:52.900 --> 01:47:53.829
whatever he wants.

01:47:53.839 --> 01:47:54.039
Yes.

01:47:54.039 --> 01:47:54.199
Do you know

01:47:54.209 --> 01:47:54.599
what I mean?

01:47:54.900 --> 01:47:55.569
And they've got all

01:47:55.569 --> 01:47:56.800
these excuses why

01:47:56.800 --> 01:47:57.630
your money isn't your

01:47:57.630 --> 01:47:58.529
money, and you can't

01:47:58.530 --> 01:47:59.679
direct where it goes.

01:47:59.760 --> 01:48:00.059
Yeah.

01:48:00.589 --> 01:48:02.919
And  cause my thing

01:48:02.920 --> 01:48:04.139
is if you walk in

01:48:04.490 --> 01:48:05.660
and talk to your

01:48:05.670 --> 01:48:07.240
401administer and

01:48:07.240 --> 01:48:07.759
say, "I don't want

01:48:07.789 --> 01:48:08.449
my money going to

01:48:08.449 --> 01:48:09.490
these bad places,"

01:48:09.859 --> 01:48:10.249
they'll say,

01:48:10.249 --> 01:48:10.950
"Oh  don't worry.

01:48:10.950 --> 01:48:11.799
BlackRock has an

01:48:11.809 --> 01:48:13.369
ESG fund, and-

01:48:13.569 --> 01:48:13.829
Yes

01:48:14.260 --> 01:48:14.959
…   That's screened

01:48:14.959 --> 01:48:15.840
for environmental,

01:48:15.840 --> 01:48:16.420
social, and

01:48:16.420 --> 01:48:17.279
governance stuff.

01:48:17.279 --> 01:48:18.679
And it's worse than

01:48:19.510 --> 01:48:20.150
it's worse than

01:48:20.150 --> 01:48:21.199
their large cap fund.

01:48:21.530 --> 01:48:22.679
I've found when

01:48:22.679 --> 01:48:23.369
I first started

01:48:23.379 --> 01:48:23.969
to serve as an

01:48:23.969 --> 01:48:24.849
investment advisor,

01:48:24.850 --> 01:48:25.899
what I discovered is

01:48:26.350 --> 01:48:27.290
you have all these

01:48:27.290 --> 01:48:28.959
large cap funds,

01:48:28.960 --> 01:48:30.939
mutual funds or ETFs,

01:48:31.559 --> 01:48:32.359
and then you'd have

01:48:32.359 --> 01:48:34.940
the ESG  and this

01:48:34.940 --> 01:48:35.569
would come with all

01:48:35.570 --> 01:48:36.549
sorts of packaging

01:48:36.549 --> 01:48:37.740
about social concerns

01:48:37.740 --> 01:48:38.479
and this and that,

01:48:38.490 --> 01:48:39.259
blah, blah, blah.

01:48:40.549 --> 01:48:41.400
And the only

01:48:41.400 --> 01:48:42.259
difference between

01:48:42.259 --> 01:48:42.949
this one and this

01:48:42.949 --> 01:48:43.559
one, if you looked

01:48:43.559 --> 01:48:44.230
at the top 10

01:48:44.240 --> 01:48:46.290
holdings, same exact

01:48:46.299 --> 01:48:47.149
top 10 holdings

01:48:47.159 --> 01:48:47.870
in all of them.

01:48:47.879 --> 01:48:47.909
Yes.

01:48:48.280 --> 01:48:49.769
Same one, and the

01:48:49.769 --> 01:48:50.599
only difference was

01:48:50.600 --> 01:48:51.320
this had a higher

01:48:51.320 --> 01:48:52.339
fee, but it, and all

01:48:52.339 --> 01:48:53.529
sorts of packaging.

01:48:54.689 --> 01:48:55.279
But it was the

01:48:55.280 --> 01:48:55.949
same thing.

01:48:56.789 --> 01:48:58.399
One good, one good

01:48:58.399 --> 01:48:59.729
aspect or thing

01:48:59.729 --> 01:49:00.419
to be encouraged

01:49:00.420 --> 01:49:02.489
about is that 401s

01:49:02.780 --> 01:49:03.779
only have a limited

01:49:03.780 --> 01:49:04.579
number of options.

01:49:05.019 --> 01:49:05.869
It's not like you're

01:49:05.869 --> 01:49:06.529
looking under the

01:49:06.530 --> 01:49:07.429
entire universe

01:49:07.429 --> 01:49:08.219
of investments.

01:49:08.759 --> 01:49:10.279
So it is doable to

01:49:10.289 --> 01:49:11.579
look into the details

01:49:11.619 --> 01:49:13.229
of the 10 funds that

01:49:13.229 --> 01:49:14.619
they have, and if

01:49:14.619 --> 01:49:15.939
it's f- a lot of

01:49:15.939 --> 01:49:16.510
times there'll be

01:49:16.539 --> 01:49:18.280
six target date funds

01:49:18.649 --> 01:49:20.179
and a large cap fund

01:49:20.569 --> 01:49:21.539
and an international

01:49:21.539 --> 01:49:23.050
fund and a cash fund

01:49:23.050 --> 01:49:23.830
and a bond fund.

01:49:24.600 --> 01:49:26.719
So it's not  as

01:49:26.729 --> 01:49:27.969
onerous as you think

01:49:28.229 --> 01:49:28.950
to go and look at

01:49:28.950 --> 01:49:29.840
the details of those,

01:49:29.840 --> 01:49:30.660
and it can be done.

01:49:33.284 --> 01:49:34.273
Okay, so then we turn

01:49:34.273 --> 01:49:35.164
to pension funds.

01:49:35.164 --> 01:49:35.864
So you can have state

01:49:35.864 --> 01:49:36.674
and local pension

01:49:36.674 --> 01:49:37.504
funds, you can have

01:49:37.504 --> 01:49:38.784
the TSP or national

01:49:38.784 --> 01:49:40.494
government fund,

01:49:40.494 --> 01:49:41.544
and then you've got

01:49:41.574 --> 01:49:42.504
corporate and union,

01:49:42.504 --> 01:49:43.204
and of course, then

01:49:43.204 --> 01:49:44.044
you have programs

01:49:44.044 --> 01:49:45.404
like Social Security.

01:49:45.473 --> 01:49:46.934
And this gets

01:49:46.934 --> 01:49:48.003
trickier because

01:49:48.004 --> 01:49:48.693
you've got,

01:49:48.934 --> 01:49:49.813
particularly state

01:49:49.824 --> 01:49:51.704
and local government

01:49:51.704 --> 01:49:53.504
pension funds have

01:49:53.514 --> 01:49:54.334
gotten themselves

01:49:54.334 --> 01:49:54.823
up to their

01:49:54.824 --> 01:49:55.773
eyeballs in private

01:49:55.783 --> 01:49:56.823
equity, as have the

01:49:56.824 --> 01:49:57.874
insurance companies,

01:49:57.904 --> 01:49:59.363
and they've got

01:49:59.363 --> 01:50:00.193
a real problem.

01:50:00.514 --> 01:50:01.174
Now, to be fair,

01:50:01.174 --> 01:50:01.634
with the lack of

01:50:01.634 --> 01:50:02.914
liquidity, even if

01:50:02.914 --> 01:50:03.633
they wanted to get

01:50:03.633 --> 01:50:04.013
out, they might

01:50:04.013 --> 01:50:04.593
not be able to.

01:50:06.233 --> 01:50:07.004
I'm assuming

01:50:07.433 --> 01:50:08.184
a lot of those

01:50:08.184 --> 01:50:08.924
funds have slowed

01:50:08.933 --> 01:50:09.784
down redemptions,

01:50:10.374 --> 01:50:10.724
yeah.

01:50:12.433 --> 01:50:13.704
And  the inertia

01:50:13.704 --> 01:50:14.483
in the government

01:50:14.744 --> 01:50:16.074
to say, " we-

01:50:16.273 --> 01:50:17.053
we're doing private

01:50:17.053 --> 01:50:17.954
equity." And I-

01:50:18.034 --> 01:50:18.713
I'd say, "Why are

01:50:18.713 --> 01:50:19.273
you doing it?"

01:50:19.994 --> 01:50:21.063
" diversification."

01:50:21.593 --> 01:50:22.264
And you have to just

01:50:22.303 --> 01:50:23.753
go down the layers

01:50:23.803 --> 01:50:25.124
of arguing with them.

01:50:25.273 --> 01:50:26.093
And even then,

01:50:26.093 --> 01:50:26.704
it's like, "Okay,

01:50:26.733 --> 01:50:27.843
thanks.  Have a

01:50:27.843 --> 01:50:28.763
nice day." And they

01:50:28.764 --> 01:50:29.523
just default back.

01:50:29.533 --> 01:50:30.323
If you ask the person

01:50:30.323 --> 01:50:31.494
the next day, "Oh,

01:50:31.494 --> 01:50:32.493
it's diversification.

01:50:32.514 --> 01:50:32.773
We're gonna

01:50:32.803 --> 01:50:33.494
reduce it."

01:50:34.063 --> 01:50:34.903
I think the time

01:50:34.904 --> 01:50:36.753
has come to say, why

01:50:36.914 --> 01:50:38.963
are you financing

01:50:39.264 --> 01:50:40.213
companies that are

01:50:40.213 --> 01:50:42.413
destroying our tax

01:50:42.414 --> 01:50:43.693
base and poisoning

01:50:43.723 --> 01:50:44.363
and controlling

01:50:44.363 --> 01:50:45.113
our citizens?

01:50:45.173 --> 01:50:45.513
Yeah.

01:50:46.334 --> 01:50:46.854
We

01:50:49.473 --> 01:50:50.643
Government is

01:50:50.643 --> 01:50:51.983
funded by taxpayers

01:50:51.993 --> 01:50:52.953
to do two things.

01:50:52.963 --> 01:50:54.263
One is to

01:50:55.223 --> 01:50:56.264
implement the law.

01:50:56.973 --> 01:50:57.433
That's not

01:50:57.433 --> 01:50:58.203
price sensitive.

01:50:58.543 --> 01:50:59.273
You don't say, "Oh,

01:50:59.304 --> 01:51:00.094
let's save money

01:51:00.094 --> 01:51:00.873
this year by not

01:51:00.874 --> 01:51:01.773
enforcing against

01:51:01.773 --> 01:51:02.763
murder," right?

01:51:02.893 --> 01:51:03.463
Yes.

01:51:03.843 --> 01:51:04.353
Governments

01:51:04.353 --> 01:51:05.073
enforce the law.

01:51:05.093 --> 01:51:05.933
But the second thing

01:51:05.933 --> 01:51:06.433
they're supposed

01:51:06.433 --> 01:51:08.084
to do is manage

01:51:08.084 --> 01:51:09.423
the infrastructure

01:51:10.624 --> 01:51:11.303
and different

01:51:11.304 --> 01:51:12.483
functions within

01:51:12.554 --> 01:51:13.873
the state or the

01:51:13.874 --> 01:51:15.753
local area that are

01:51:15.753 --> 01:51:16.973
designed to optimize

01:51:16.973 --> 01:51:17.833
the tax base.

01:51:19.654 --> 01:51:19.983
Yeah.

01:51:20.043 --> 01:51:21.703
And why should they

01:51:21.723 --> 01:51:23.443
take their citizen

01:51:23.444 --> 01:51:24.854
savings and pour

01:51:24.854 --> 01:51:26.303
them into  companies

01:51:26.304 --> 01:51:26.993
that are destroying

01:51:26.993 --> 01:51:27.754
the tax base?

01:51:28.573 --> 01:51:29.243
Yes.

01:51:29.323 --> 01:51:30.023
And that's why the

01:51:30.023 --> 01:51:31.233
biggest opportunity

01:51:31.253 --> 01:51:33.413
is local and state

01:51:33.423 --> 01:51:34.993
legislators, because

01:51:34.993 --> 01:51:35.794
at least there's

01:51:35.813 --> 01:51:37.803
some potential for

01:51:37.803 --> 01:51:39.663
them to hear you in

01:51:39.663 --> 01:51:41.553
a public format or in

01:51:42.804 --> 01:51:44.133
a meeting with them

01:51:44.143 --> 01:51:45.133
or something, because

01:51:45.164 --> 01:51:46.053
at the highest level,

01:51:46.054 --> 01:51:46.643
at the governor's

01:51:46.643 --> 01:51:47.824
level, and some of

01:51:47.824 --> 01:51:48.434
these state people

01:51:48.434 --> 01:51:49.724
are so managed,

01:51:50.024 --> 01:51:51.004
unless you have

01:51:51.354 --> 01:51:52.483
individual access

01:51:52.793 --> 01:51:53.663
you can't even get,

01:51:53.783 --> 01:51:54.503
ask the person the

01:51:54.503 --> 01:51:55.934
question in any way.

01:51:57.770 --> 01:51:58.640
So one of the

01:51:58.650 --> 01:51:59.410
things that really

01:51:59.510 --> 01:52:00.440
worries me about

01:52:00.440 --> 01:52:01.460
managing retirement

01:52:01.460 --> 01:52:03.760
agencies or assets is

01:52:04.350 --> 01:52:05.300
insurance companies.

01:52:05.300 --> 01:52:06.010
So I just sent you

01:52:06.010 --> 01:52:06.820
that new article

01:52:06.820 --> 01:52:07.810
on MassMutual.

01:52:07.860 --> 01:52:10.180
It started, we had  a

01:52:10.219 --> 01:52:11.079
interview with Lucy

01:52:11.080 --> 01:52:12.020
Komisar, came out

01:52:12.020 --> 01:52:12.780
with a big report

01:52:12.780 --> 01:52:13.569
about how private

01:52:13.570 --> 01:52:14.300
equity guys were

01:52:14.300 --> 01:52:15.640
stuffing their junk

01:52:16.579 --> 01:52:19.530
stuff into the back-

01:52:19.589 --> 01:52:19.979
Yeah

01:52:19.979 --> 01:52:20.539
investment

01:52:20.540 --> 01:52:21.629
portfolios of these

01:52:21.630 --> 01:52:22.409
insurance companies.

01:52:22.409 --> 01:52:24.210
So I, if I get a

01:52:24.210 --> 01:52:25.789
life insurance policy

01:52:25.819 --> 01:52:27.390
based  on a very

01:52:27.390 --> 01:52:28.639
high quality credit,

01:52:29.050 --> 01:52:29.940
but that company is

01:52:29.940 --> 01:52:31.040
really going downhill

01:52:31.040 --> 01:52:31.549
because they're

01:52:31.550 --> 01:52:32.360
doing all these

01:52:32.360 --> 01:52:34.089
junk bonds or  low

01:52:34.090 --> 01:52:35.150
quality investments

01:52:35.150 --> 01:52:35.859
in their investment

01:52:35.859 --> 01:52:38.089
portfolio, I'm paying

01:52:38.089 --> 01:52:39.139
a premium according

01:52:39.140 --> 01:52:40.079
to one credit, but

01:52:40.079 --> 01:52:41.749
meantime, the value

01:52:41.750 --> 01:52:42.410
of that credit

01:52:42.410 --> 01:52:43.860
is going   down.

01:52:44.660 --> 01:52:45.160
And,

01:52:46.719 --> 01:52:47.329
Yes.

01:52:48.179 --> 01:52:49.419
And you may…    It

01:52:49.460 --> 01:52:50.319
becomes harder

01:52:50.320 --> 01:52:51.049
and harder.

01:52:51.349 --> 01:52:51.990
It's not easy.

01:52:52.440 --> 01:52:53.529
If you bought in

01:52:53.890 --> 01:52:55.009
to a life insurance

01:52:55.009 --> 01:52:55.889
policy based on

01:52:55.899 --> 01:52:56.749
health underwriting

01:52:56.749 --> 01:52:58.820
at a younger age and

01:53:00.324 --> 01:53:01.724
you now say, "Okay,

01:53:01.724 --> 01:53:03.784
I want to    there's

01:53:03.784 --> 01:53:04.914
different, there's…

01:53:05.114 --> 01:53:06.274
It's in the weeds,

01:53:06.274 --> 01:53:07.454
and sometimes you can

01:53:07.454 --> 01:53:08.484
convert without a tax

01:53:08.484 --> 01:53:09.403
bill, but you might

01:53:09.404 --> 01:53:09.993
have to do health

01:53:09.994 --> 01:53:10.734
underwriting again.

01:53:11.143 --> 01:53:12.663
So it just, there's

01:53:12.674 --> 01:53:14.204
so many impediments

01:53:14.643 --> 01:53:15.564
that are thrown up,

01:53:16.313 --> 01:53:17.544
and   it just…

01:53:17.574 --> 01:53:18.473
The, the fact  that's

01:53:18.473 --> 01:53:19.124
in the insurance

01:53:19.124 --> 01:53:19.663
company, like the

01:53:19.664 --> 01:53:21.233
people, it's like the

01:53:21.233 --> 01:53:22.634
s-  the siren song.

01:53:22.643 --> 01:53:23.283
Everybody's just

01:53:23.283 --> 01:53:24.053
following it.

01:53:24.473 --> 01:53:25.194
Private equity,

01:53:25.194 --> 01:53:25.704
like they're on

01:53:25.713 --> 01:53:27.894
mental autopilot,

01:53:28.393 --> 01:53:29.643
and they just keep

01:53:29.643 --> 01:53:30.623
following the siren

01:53:30.623 --> 01:53:33.344
song, and until

01:53:33.344 --> 01:53:34.294
it ends in tears,

01:53:34.294 --> 01:53:34.694
they're gonna keep

01:53:34.703 --> 01:53:35.363
going down the road.

01:53:36.343 --> 01:53:36.843
But what we're

01:53:36.843 --> 01:53:38.233
watching, it

01:53:38.604 --> 01:53:39.523
this is a trend.

01:53:39.534 --> 01:53:40.993
Whether it's 401s,

01:53:41.194 --> 01:53:42.393
IRAs, pension funds,

01:53:42.393 --> 01:53:43.453
insurance companies,

01:53:43.964 --> 01:53:46.503
you make a deal, and

01:53:46.503 --> 01:53:48.033
then quietly through

01:53:48.034 --> 01:53:48.703
the back door,

01:53:48.703 --> 01:53:49.424
the deal's getting

01:53:49.424 --> 01:53:50.324
changed on you, and

01:53:50.324 --> 01:53:51.063
you don't know it.

01:53:52.643 --> 01:53:55.614
So this is why I

01:53:55.614 --> 01:53:56.743
keep arguing for

01:53:56.753 --> 01:53:57.453
having as much

01:53:57.453 --> 01:53:58.604
control as possible.

01:53:59.174 --> 01:54:00.154
And somebody'll say,

01:54:00.154 --> 01:54:01.053
"Oh  I don't wanna

01:54:01.063 --> 01:54:02.204
bother to manage my

01:54:02.204 --> 01:54:03.243
own bond portfolio.

01:54:03.253 --> 01:54:04.124
I'd rather just do

01:54:04.124 --> 01:54:04.903
an annuity with the

01:54:04.903 --> 01:54:05.803
insurance company."

01:54:06.163 --> 01:54:06.843
It's like, no,

01:54:07.004 --> 01:54:07.944
learn how to manage.

01:54:08.274 --> 01:54:08.373
Yes.

01:54:08.373 --> 01:54:08.903
Learn how to-

01:54:08.913 --> 01:54:09.503
Yeah … find

01:54:09.604 --> 01:54:10.644
somebody to do bonds.

01:54:10.684 --> 01:54:11.283
There, there are

01:54:11.284 --> 01:54:12.194
great brokers

01:54:12.194 --> 01:54:12.693
who know how to

01:54:12.693 --> 01:54:13.743
do real bonds.

01:54:13.773 --> 01:54:14.303
Yes.

01:54:14.363 --> 01:54:15.213
And take the time

01:54:15.214 --> 01:54:15.783
to learn how to

01:54:15.784 --> 01:54:16.603
do it, because

01:54:17.023 --> 01:54:18.293
otherwise  you're

01:54:18.293 --> 01:54:19.133
reaching a deal with

01:54:19.133 --> 01:54:21.514
an, a  with a, a

01:54:21.514 --> 01:54:22.353
company that could

01:54:22.354 --> 01:54:23.524
change over time.

01:54:24.424 --> 01:54:26.144
And basically  the

01:54:26.144 --> 01:54:27.224
agreement is being

01:54:27.224 --> 01:54:29.163
cheated out deal

01:54:29.163 --> 01:54:30.193
after deal, company

01:54:30.193 --> 01:54:31.193
after company.

01:54:31.343 --> 01:54:31.773
Yeah.

01:54:33.383 --> 01:54:34.723
One, one just point

01:54:34.773 --> 01:54:36.114
there with doing it

01:54:36.114 --> 01:54:37.583
yourself, a lot of

01:54:37.583 --> 01:54:38.963
the life insurance

01:54:38.963 --> 01:54:40.653
sa-  salespeople will

01:54:41.403 --> 01:54:42.364
make you aware that

01:54:42.364 --> 01:54:43.373
life insurance pays

01:54:43.373 --> 01:54:46.243
out tax-free if you

01:54:46.244 --> 01:54:47.443
hold your portfolio

01:54:47.443 --> 01:54:48.294
until you die.

01:54:48.354 --> 01:54:48.883
So  you're

01:54:48.883 --> 01:54:49.203
talking about

01:54:49.203 --> 01:54:49.804
life insurance, so

01:54:49.804 --> 01:54:50.643
that's when you die.

01:54:51.513 --> 01:54:52.623
Under current law,

01:54:52.633 --> 01:54:53.564
the basis steps

01:54:53.564 --> 01:54:54.293
up and y- your,

01:54:54.343 --> 01:54:54.683
the people who

01:54:54.683 --> 01:54:55.504
inherit your money

01:54:57.083 --> 01:54:57.733
can sell it with

01:54:57.733 --> 01:54:58.393
paying no tax.

01:54:58.403 --> 01:54:58.763
So just be

01:54:58.763 --> 01:54:59.174
aware of that.

01:55:00.973 --> 01:55:01.713
Exactly.

01:55:02.593 --> 01:55:03.903
Okay, next slide.

01:55:04.473 --> 01:55:05.733
So I wanna get back

01:55:05.733 --> 01:55:07.163
to this issue, and

01:55:07.183 --> 01:55:08.833
to do this issue

01:55:08.834 --> 01:55:09.773
of consent, I

01:55:09.773 --> 01:55:12.144
wanna play what was

01:55:12.144 --> 01:55:13.193
the most shocking

01:55:13.203 --> 01:55:14.263
video of the second

01:55:14.263 --> 01:55:15.283
quarter for me.

01:55:15.283 --> 01:55:16.013
Okay.

01:55:16.013 --> 01:55:17.723
And  this is the

01:55:17.724 --> 01:55:19.104
former Greek finance

01:55:19.104 --> 01:55:21.243
minister  talking

01:55:21.243 --> 01:55:22.393
about his dinner

01:55:23.444 --> 01:55:24.443
at a conference

01:55:25.243 --> 01:55:26.003
with a gentleman

01:55:26.004 --> 01:55:26.874
from Palantir.

01:55:27.663 --> 01:55:28.514
And here  I'm gonna

01:55:28.514 --> 01:55:28.904
tell you a story.

01:55:29.323 --> 01:55:29.513
It's a story that I

01:55:29.513 --> 01:55:30.613
ke- I keep telling in

01:55:30.614 --> 01:55:31.193
the last few months,

01:55:31.193 --> 01:55:32.354
because nothing has

01:55:32.864 --> 01:55:33.763
disgusted me and

01:55:33.763 --> 01:55:34.594
excited me as much

01:55:34.594 --> 01:55:35.323
as that conversation

01:55:35.323 --> 01:55:36.113
I had with a certain

01:55:36.113 --> 01:55:36.653
gentleman who was

01:55:36.663 --> 01:55:37.483
sitting on my right

01:55:37.763 --> 01:55:38.414
at the dinner table.

01:55:39.103 --> 01:55:40.024
At the dinner, after

01:55:40.024 --> 01:55:40.913
the conference, I

01:55:40.913 --> 01:55:41.563
was sat next to a

01:55:41.563 --> 01:55:42.223
guy from Cisco on my

01:55:42.224 --> 01:55:42.923
left and to another

01:55:42.924 --> 01:55:43.533
guy that I didn't

01:55:43.534 --> 01:55:44.004
pay much attention

01:55:44.004 --> 01:55:44.404
to initially.

01:55:44.674 --> 01:55:45.073
And I was chatting

01:55:45.073 --> 01:55:45.264
with the guy

01:55:45.264 --> 01:55:45.973
from Cisco.

01:55:45.973 --> 01:55:46.188
It was an interesting

01:55:46.188 --> 01:55:46.256
conversation.

01:55:46.256 --> 01:55:46.623
It was about

01:55:46.713 --> 01:55:47.343
quantum computing.

01:55:47.683 --> 01:55:48.163
And then at some

01:55:48.163 --> 01:55:48.833
point, a gentleman,

01:55:48.833 --> 01:55:51.813
a Qatari  from the

01:55:51.813 --> 01:55:52.304
opposite side of

01:55:52.304 --> 01:55:52.773
the, the table-

01:55:53.942 --> 01:55:54.712
Very rich man.

01:55:54.712 --> 01:55:55.152
But nevertheless,

01:55:55.152 --> 01:55:55.662
he thanked me

01:55:55.662 --> 01:55:56.412
for the work I'm,

01:55:56.512 --> 01:55:56.952
I've been doing

01:55:57.512 --> 01:55:58.152
against genocide

01:55:58.502 --> 01:55:59.252
in support of the

01:55:59.252 --> 01:55:59.612
Palestinian people.

01:56:00.272 --> 01:56:00.932
And the guy next

01:56:00.942 --> 01:56:01.592
to me, who I didn't

01:56:01.592 --> 01:56:02.262
know, I didn't know

01:56:02.262 --> 01:56:02.702
who he was, didn't

01:56:02.702 --> 01:56:03.532
know his name  whom

01:56:03.532 --> 01:56:03.992
he worked for.

01:56:04.152 --> 01:56:05.742
He said, " Gaza.

01:56:06.581 --> 01:56:07.191
We owe such a

01:56:07.192 --> 01:56:08.102
huge debt of

01:56:08.112 --> 01:56:08.902
gratitude to Gaza."

01:56:08.902 --> 01:56:09.771
And I said, "Who are

01:56:09.772 --> 01:56:10.792
you?" And he said,

01:56:10.822 --> 01:56:11.271
"Oh, I work for

01:56:11.271 --> 01:56:13.192
Palantir." And I said

01:56:13.192 --> 01:56:15.231
to him, " so you owe

01:56:15.531 --> 01:56:16.381
whom exactly what?

01:56:17.201 --> 01:56:17.552
Y- you seem to

01:56:17.562 --> 01:56:18.041
be enjoying the

01:56:18.041 --> 01:56:18.431
fact that tens of

01:56:18.431 --> 01:56:18.942
thousands of children

01:56:18.942 --> 01:56:19.811
died, were killed

01:56:19.812 --> 01:56:20.352
there." He said,

01:56:20.832 --> 01:56:21.089
"   no, I-- That, that

01:56:21.089 --> 01:56:21.281
was terrible. It

01:56:21.281 --> 01:56:21.692
was terrible."

01:56:22.021 --> 01:56:22.521
But, and then he

01:56:22.521 --> 01:56:23.251
pointed at my phone.

01:56:23.271 --> 01:56:24.352
I had my phone  on

01:56:24.352 --> 01:56:24.732
the desk, on the

01:56:24.751 --> 01:56:25.521
dinner table.

01:56:25.521 --> 01:56:26.441
And he said, " you

01:56:26.442 --> 01:56:26.842
see your phone?

01:56:27.731 --> 01:56:28.271
It is useless

01:56:28.282 --> 01:56:29.062
to me because it

01:56:29.062 --> 01:56:29.622
is stationary.

01:56:29.652 --> 01:56:30.122
When your phone

01:56:30.122 --> 01:56:30.652
is stationary,

01:56:30.701 --> 01:56:31.211
it's not moving,

01:56:31.231 --> 01:56:31.701
it doesn't produce

01:56:31.701 --> 01:56:32.571
data that I can use.

01:56:32.871 --> 01:56:34.151
But if you bombard

01:56:34.461 --> 01:56:35.322
a densely populated

01:56:35.361 --> 01:56:36.401
area intensely,

01:56:36.672 --> 01:56:37.311
people move a lot

01:56:37.361 --> 01:56:37.901
with their phones.

01:56:38.291 --> 01:56:38.771
Those who don't get

01:56:38.791 --> 01:56:39.152
killed," he said.

01:56:39.202 --> 01:56:40.181
He was very cynical

01:56:40.181 --> 01:56:40.881
and, but was also

01:56:40.902 --> 01:56:41.402
quite pleasant

01:56:41.812 --> 01:56:42.231
during dinner.

01:56:43.062 --> 01:56:43.851
And he said, "So

01:56:43.991 --> 01:56:44.892
we…" "That created

01:56:44.892 --> 01:56:45.771
so much data for us

01:56:45.911 --> 01:56:46.572
that we managed to

01:56:46.572 --> 01:56:48.281
train our AI that

01:56:48.332 --> 01:56:49.121
the one, a piece,

01:56:49.121 --> 01:56:50.482
a particular agent,

01:56:50.562 --> 01:56:51.431
AI agent, which we

01:56:51.431 --> 01:56:52.372
sold," and I then I

01:56:52.372 --> 01:56:53.631
checked and      it

01:56:53.632 --> 01:56:54.002
was confirmed.

01:56:54.261 --> 01:56:54.981
"We sold for one

01:56:55.082 --> 01:56:56.571
billion pounds

01:56:56.691 --> 01:56:57.631
sterling," right?

01:56:57.672 --> 01:56:58.451
That's one point four

01:56:58.582 --> 01:57:00.602
billion  dollars, "To

01:57:00.602 --> 01:57:01.842
the British public

01:57:01.881 --> 01:57:02.471
National Health

01:57:02.472 --> 01:57:03.802
Service." And I said,

01:57:03.802 --> 01:57:04.491
"What the hell was

01:57:04.541 --> 01:57:05.552
that piece of  AI?

01:57:05.552 --> 01:57:05.762
What are you

01:57:05.762 --> 01:57:06.182
selling?" He

01:57:06.182 --> 01:57:07.212
said, "   when you,

01:57:07.251 --> 01:57:07.551
let's say you're

01:57:07.552 --> 01:57:08.062
in Manchester or in

01:57:08.062 --> 01:57:08.632
Birmingham, and there

01:57:08.632 --> 01:57:09.291
is a pile up at the

01:57:09.512 --> 01:57:10.751
motorway, and  10,

01:57:10.751 --> 01:57:11.382
15 ambulances arrive

01:57:11.382 --> 01:57:11.861
at the hospital,

01:57:11.911 --> 01:57:12.491
there's panic amongst

01:57:12.491 --> 01:57:12.871
the nurses, the

01:57:12.872 --> 01:57:13.401
doctors, and so on.

01:57:13.521 --> 01:57:14.381
So we have AI that

01:57:14.391 --> 01:57:15.291
helps them create

01:57:15.291 --> 01:57:15.781
some order out of

01:57:15.781 --> 01:57:16.361
the chaos of panic,

01:57:16.591 --> 01:57:17.791
and we trained that

01:57:17.832 --> 01:57:19.711
anti-panic AI using

01:57:19.781 --> 01:57:21.232
the panic of, the

01:57:21.262 --> 01:57:21.991
panic imprint,"

01:57:22.041 --> 01:57:22.731
this was expression,

01:57:23.211 --> 01:57:24.702
" from Gaza." I

01:57:24.711 --> 01:57:25.141
think that answers

01:57:25.141 --> 01:57:25.411
your question.

01:57:25.762 --> 01:57:26.212
Okay.

01:57:26.212 --> 01:57:27.982
So if you're in

01:57:28.132 --> 01:57:28.642
an index fund-

01:57:28.642 --> 01:57:28.822
It's specifically

01:57:28.822 --> 01:57:30.242
the movement under

01:57:30.342 --> 01:57:31.372
threat, under

01:57:31.372 --> 01:57:32.291
crisis that they

01:57:32.291 --> 01:57:32.971
wanted to have.

01:57:33.881 --> 01:57:34.582
They're selling

01:57:36.566 --> 01:57:36.816
Right.

01:57:36.866 --> 01:57:37.135
Ugh.

01:57:38.826 --> 01:57:40.606
This is why    I keep

01:57:40.606 --> 01:57:43.206
trying to remove the

01:57:43.206 --> 01:57:45.496
disassociation that

01:57:45.496 --> 01:57:47.525
we have between what

01:57:47.526 --> 01:57:49.755
we're financing and

01:57:49.755 --> 01:57:50.535
what we say we don't

01:57:50.535 --> 01:57:51.376
want in the world.

01:57:54.766 --> 01:57:55.875
It's funny, as we've

01:57:55.876 --> 01:57:56.455
been writing this

01:57:56.456 --> 01:57:57.126
thing on student

01:57:57.126 --> 01:57:58.235
loans, and I've been

01:57:58.235 --> 01:57:59.175
talking with Alan

01:57:59.415 --> 01:58:00.575
Kelona, she's been

01:58:00.575 --> 01:58:01.296
writing it about

01:58:01.296 --> 01:58:02.425
why Congress won't

01:58:03.026 --> 01:58:06.615
pass  let bankruptcy

01:58:06.766 --> 01:58:07.766
protections come back

01:58:07.766 --> 01:58:08.815
on student loans.

01:58:09.816 --> 01:58:10.565
And I said, "Because

01:58:10.776 --> 01:58:11.616
Congress knows what

01:58:11.616 --> 01:58:12.885
everybody wants to do

01:58:13.206 --> 01:58:14.206
once upon a time, was

01:58:14.206 --> 01:58:14.836
make money on their

01:58:14.836 --> 01:58:15.805
Sallie Mae stock."

01:58:16.515 --> 01:58:16.765
Yeah.

01:58:17.945 --> 01:58:20.736
So this is a, a

01:58:20.736 --> 01:58:22.046
multiple personality

01:58:22.046 --> 01:58:23.046
disorder that's deep

01:58:23.046 --> 01:58:24.145
in the population.

01:58:25.165 --> 01:58:25.945
Congress is not

01:58:25.945 --> 01:58:26.745
gonna fix it, 'cause

01:58:26.745 --> 01:58:27.446
they're bought.

01:58:28.096 --> 01:58:29.246
And so we have to fix

01:58:29.246 --> 01:58:30.325
it, and the question

01:58:30.325 --> 01:58:31.805
is, can we, are we

01:58:31.805 --> 01:58:32.675
willing to fix it?

01:58:33.675 --> 01:58:36.675
But  when John Titus

01:58:36.675 --> 01:58:37.435
and I have said for

01:58:37.436 --> 01:58:39.045
two years that Gaza

01:58:39.046 --> 01:58:39.925
is a method and

01:58:39.925 --> 01:58:41.175
it's coming this way

01:58:42.235 --> 01:58:43.055
that's what the flock

01:58:43.055 --> 01:58:43.875
cameras are, that's

01:58:43.875 --> 01:58:44.525
what the drones

01:58:44.526 --> 01:58:45.095
are, that's what

01:58:45.096 --> 01:58:46.356
the robot dogs are.

01:58:46.735 --> 01:58:47.515
It's coming this

01:58:47.515 --> 01:58:48.765
way, and you are

01:58:48.765 --> 01:58:49.945
financing it, and if

01:58:49.945 --> 01:58:50.885
you wanna stop it,

01:58:50.915 --> 01:58:51.915
you can't do that.

01:58:52.886 --> 01:58:53.965
You have to decide.

01:58:54.755 --> 01:58:55.025
Yeah.

01:58:55.415 --> 01:58:56.205
I think it gets to

01:58:56.206 --> 01:58:57.015
what you've said

01:58:57.026 --> 01:58:57.965
of the story of I

01:58:57.965 --> 01:58:59.246
Am Good, and that

01:58:59.246 --> 01:59:00.785
you have to not

01:59:00.795 --> 01:59:02.115
be in need of that

01:59:02.115 --> 01:59:04.326
story, and also be

01:59:04.326 --> 01:59:05.675
willing… To me,

01:59:05.676 --> 01:59:06.935
you have to, given

01:59:06.935 --> 01:59:07.405
everything you've

01:59:07.405 --> 01:59:10.295
said, my first

01:59:10.295 --> 01:59:11.035
thought and my most

01:59:11.035 --> 01:59:11.596
effective way to

01:59:11.596 --> 01:59:12.605
operate is to start

01:59:12.605 --> 01:59:13.566
from the inside out,

01:59:13.985 --> 01:59:14.696
to start with the

01:59:14.696 --> 01:59:15.966
people and the places

01:59:15.966 --> 01:59:16.955
that are most dear to

01:59:16.956 --> 01:59:18.635
me, and start working

01:59:18.636 --> 01:59:20.205
on cle- g- coming

01:59:20.206 --> 01:59:21.695
clean in that aspect.

01:59:22.005 --> 01:59:22.905
It's not zero

01:59:22.915 --> 01:59:23.705
versus one.

01:59:23.715 --> 01:59:24.015
Yeah.

01:59:24.535 --> 01:59:25.915
So my biggest problem

01:59:25.915 --> 01:59:26.575
when coming clean

01:59:26.575 --> 01:59:27.935
is  it's gonna

01:59:27.935 --> 01:59:28.805
take an enormous

01:59:28.805 --> 01:59:29.505
effort to try and

01:59:29.505 --> 01:59:30.736
figure out what

01:59:30.746 --> 01:59:31.716
my pension fund is

01:59:31.716 --> 01:59:32.696
really invested in.

01:59:33.835 --> 01:59:34.475
Cause if you look

01:59:34.475 --> 01:59:35.395
at the disclosure,

01:59:35.395 --> 01:59:38.116
it's    it's truly

01:59:38.116 --> 01:59:38.896
the top layer.

01:59:39.055 --> 01:59:39.375
Yeah.

01:59:39.875 --> 01:59:42.255
But    we can all

01:59:42.265 --> 01:59:43.046
do what we can

01:59:43.046 --> 01:59:44.336
do, and we can all

01:59:44.336 --> 01:59:45.495
start to send that

01:59:45.496 --> 01:59:47.105
message back to

01:59:47.106 --> 01:59:48.125
Southern Magnolia.

01:59:48.505 --> 01:59:49.356
This is a demonic

01:59:49.375 --> 01:59:50.235
company, I'm not

01:59:50.235 --> 01:59:51.215
gonna invest in this.

01:59:51.216 --> 01:59:51.466
Yeah.

01:59:53.625 --> 01:59:54.755
So I don't know.

01:59:54.776 --> 01:59:55.925
Think about consent,

01:59:56.436 --> 01:59:57.546
because as the

01:59:57.555 --> 01:59:59.255
temperature rises

01:59:59.815 --> 02:00:00.996
and the perpetual war

02:00:00.996 --> 02:00:02.336
machine goes to work-

02:00:03.960 --> 02:00:05.280
this is, this somehow

02:00:05.280 --> 02:00:06.010
one way or another,

02:00:06.010 --> 02:00:06.770
this issue's gonna

02:00:06.770 --> 02:00:08.780
come to a head, and

02:00:08.910 --> 02:00:09.930
we're all gonna have

02:00:09.930 --> 02:00:10.910
to look in the mirror

02:00:10.950 --> 02:00:11.700
and deal with it.

02:00:12.540 --> 02:00:13.040
Absolutely.

02:00:14.519 --> 02:00:15.480
Okay, next slide.

02:00:15.740 --> 02:00:17.010
So as I said before,

02:00:17.010 --> 02:00:18.100
we have all sorts of

02:00:18.100 --> 02:00:19.289
resources from past

02:00:19.290 --> 02:00:20.280
equity overviews.

02:00:20.689 --> 02:00:21.729
You did a great one,

02:00:21.730 --> 02:00:22.639
Tim, on how to find

02:00:22.640 --> 02:00:23.549
a financial planner

02:00:23.550 --> 02:00:24.329
and professional,

02:00:24.360 --> 02:00:26.169
and as I describe,

02:00:26.169 --> 02:00:26.810
we're always on the

02:00:26.810 --> 02:00:28.749
lookout for-  people

02:00:28.749 --> 02:00:29.439
who understand what's

02:00:29.439 --> 02:00:30.209
really going on.

02:00:30.210 --> 02:00:31.879
In 2024, we did a

02:00:31.890 --> 02:00:33.119
roundup on investing

02:00:33.120 --> 02:00:34.129
in gold and silver.

02:00:34.610 --> 02:00:35.229
You did one

02:00:35.229 --> 02:00:36.010
on insurance.

02:00:36.010 --> 02:00:36.620
I did one with

02:00:36.620 --> 02:00:37.170
Matt Haley on

02:00:37.200 --> 02:00:37.999
car insurance.

02:00:37.999 --> 02:00:39.449
We did one on taxes.

02:00:40.610 --> 02:00:41.899
And then Carolyn

02:00:41.900 --> 02:00:42.860
and I just published

02:00:42.860 --> 02:00:43.430
something from

02:00:43.430 --> 02:00:44.219
Ask Kathryn how

02:00:44.220 --> 02:00:45.229
to find a lawyer.

02:00:45.549 --> 02:00:45.969
I think that

02:00:45.970 --> 02:00:46.679
was terrific.

02:00:47.159 --> 02:00:47.629
Yeah.

02:00:47.799 --> 02:00:48.959
Anyway, 40 minutes on

02:00:48.959 --> 02:00:50.019
how to find a lawyer.

02:00:52.139 --> 02:00:53.219
And I told Carolyn

02:00:53.220 --> 02:00:53.759
at the beginning,

02:00:54.560 --> 02:00:55.550
"  I'm better at this

02:00:55.550 --> 02:00:56.270
than you are 'cause

02:00:56.270 --> 02:00:57.069
I found you."

02:00:57.110 --> 02:00:57.610
Yes.

02:00:57.790 --> 02:00:59.150
And  and I'm

02:00:59.150 --> 02:00:59.969
laughing 'cause she

02:00:59.970 --> 02:01:01.039
had one… She had

02:01:01.040 --> 02:01:01.819
to hire somebody

02:01:01.819 --> 02:01:02.600
for litigation.

02:01:02.600 --> 02:01:03.479
They turned out to be

02:01:03.479 --> 02:01:04.499
not as good as her.

02:01:05.880 --> 02:01:06.929
Then  I did

02:01:06.929 --> 02:01:07.629
one with Jason

02:01:07.630 --> 02:01:08.400
Worth on hedging

02:01:08.400 --> 02:01:09.010
your portfolio.

02:01:09.039 --> 02:01:09.830
We just did one

02:01:09.830 --> 02:01:10.649
with Dr. Pat

02:01:10.649 --> 02:01:11.649
Field on privacy.

02:01:11.649 --> 02:01:12.169
Of course, we

02:01:12.170 --> 02:01:13.249
have Coming Clean.

02:01:14.369 --> 02:01:15.190
I'm holding up a

02:01:15.190 --> 02:01:16.539
copy of Coming Clean-

02:01:17.200 --> 02:01:18.150
which when people

02:01:18.150 --> 02:01:18.690
say, "What can I

02:01:18.690 --> 02:01:19.829
do?" I say, "You

02:01:19.829 --> 02:01:21.219
can do tons." Yeah.

02:01:21.219 --> 02:01:21.739
Here we go.

02:01:22.960 --> 02:01:24.160
A big one on Coming

02:01:24.160 --> 02:01:25.090
Clean, we have the

02:01:25.100 --> 02:01:25.889
Building Wealth

02:01:25.899 --> 02:01:27.300
curriculum and a

02:01:27.300 --> 02:01:27.929
Building Wealth

02:01:27.929 --> 02:01:29.230
learning plan, and

02:01:29.240 --> 02:01:29.830
in the learning

02:01:29.830 --> 02:01:31.180
plan, we advise you

02:01:31.180 --> 02:01:32.349
to do a time budget.

02:01:32.389 --> 02:01:33.569
And I think given the

02:01:33.569 --> 02:01:34.759
explosion of shadow

02:01:34.759 --> 02:01:37.159
work  every time I

02:01:37.170 --> 02:01:39.010
sit down, Tim, and I

02:01:39.010 --> 02:01:41.299
do a, a time budget

02:01:41.299 --> 02:01:43.869
for myself, and I

02:01:43.880 --> 02:01:45.979
look at what's really

02:01:45.979 --> 02:01:47.299
wasting my time-

02:01:48.060 --> 02:01:49.200
I come up with

02:01:49.200 --> 02:01:50.259
ideas on how to

02:01:50.389 --> 02:01:51.470
protect my time.

02:01:51.639 --> 02:01:53.219
And we can all

02:01:53.219 --> 02:01:54.199
stand to do that.

02:01:54.200 --> 02:01:54.879
So check out the

02:01:54.880 --> 02:01:55.459
Building Wealth

02:01:55.459 --> 02:01:56.570
learning plan because

02:01:57.159 --> 02:01:58.169
if you can up your

02:01:58.170 --> 02:01:59.309
learning metabolism

02:01:59.310 --> 02:01:59.879
a way that's

02:01:59.880 --> 02:02:01.249
energizing for you,

02:02:01.349 --> 02:02:02.189
that's a good one.

02:02:02.219 --> 02:02:03.119
And also, we have a

02:02:03.119 --> 02:02:04.089
great Building Wealth

02:02:04.119 --> 02:02:05.849
interview on where

02:02:05.849 --> 02:02:07.019
to stash your cash.

02:02:07.039 --> 02:02:09.409
And    with…

02:02:09.689 --> 02:02:10.299
There's so many

02:02:10.299 --> 02:02:11.209
different ideas on

02:02:11.209 --> 02:02:12.159
where you can invest

02:02:12.159 --> 02:02:12.900
that people don't

02:02:13.009 --> 02:02:14.110
naturally think of.

02:02:14.279 --> 02:02:14.469
Yeah.

02:02:14.469 --> 02:02:15.110
And then we have

02:02:15.110 --> 02:02:16.050
a four-part series

02:02:16.050 --> 02:02:17.099
on finding a bank.

02:02:17.130 --> 02:02:19.209
And  many of these

02:02:19.639 --> 02:02:21.019
are really timeless.

02:02:21.279 --> 02:02:23.830
And    and I would

02:02:23.830 --> 02:02:24.370
encourage you

02:02:24.370 --> 02:02:25.080
to go back and

02:02:25.080 --> 02:02:25.720
listen to them.

02:02:25.720 --> 02:02:26.869
So any other

02:02:26.900 --> 02:02:27.589
thoughts, Tim,

02:02:27.609 --> 02:02:29.509
before we close down?

02:02:30.680 --> 02:02:31.830
I think that from

02:02:31.830 --> 02:02:32.429
an individual

02:02:32.430 --> 02:02:33.409
standpoint, the

02:02:33.409 --> 02:02:34.149
most important

02:02:34.149 --> 02:02:35.390
thing I think about

02:02:35.859 --> 02:02:36.869
is taking personal

02:02:36.869 --> 02:02:37.649
responsibility.

02:02:38.999 --> 02:02:39.789
I think that's

02:02:39.850 --> 02:02:41.610
underlies  at least a

02:02:41.610 --> 02:02:43.769
first step towards so

02:02:43.769 --> 02:02:44.579
many different things

02:02:44.579 --> 02:02:45.479
that we talked about

02:02:45.479 --> 02:02:47.968
in terms of things

02:02:47.968 --> 02:02:48.908
to do, that you have

02:02:48.908 --> 02:02:51.058
to start by accepting

02:02:51.058 --> 02:02:51.978
your role, being

02:02:51.978 --> 02:02:53.168
comfortable that you

02:02:53.168 --> 02:02:54.238
may make mistakes

02:02:54.668 --> 02:02:55.768
and being willing

02:02:55.768 --> 02:02:56.568
to turtle forth

02:02:56.568 --> 02:02:57.498
and make progress.

02:02:57.838 --> 02:02:58.608
And I think also

02:02:58.608 --> 02:02:59.448
be encouraged that

02:02:59.487 --> 02:03:00.437
once you take that,

02:03:00.438 --> 02:03:01.098
you have that change

02:03:01.968 --> 02:03:03.478
of m- of mind,

02:03:03.558 --> 02:03:05.567
so to speak  the

02:03:05.567 --> 02:03:06.538
potential progress

02:03:06.668 --> 02:03:07.577
is really impressive.

02:03:08.598 --> 02:03:10.268
So I remember I

02:03:10.278 --> 02:03:11.418
had one associate

02:03:11.438 --> 02:03:12.247
when I was on Wall

02:03:12.248 --> 02:03:13.867
Street, and he was

02:03:13.877 --> 02:03:15.208
not in, he was not

02:03:15.208 --> 02:03:16.367
in a financial area.

02:03:16.787 --> 02:03:17.218
He was in

02:03:17.248 --> 02:03:18.128
communications.

02:03:18.157 --> 02:03:18.367
Yeah.

02:03:18.527 --> 02:03:19.597
And he said, he just

02:03:19.598 --> 02:03:20.158
said, "I'm gonna

02:03:20.158 --> 02:03:21.568
budget two hours a

02:03:21.568 --> 02:03:25.417
weekend to understand

02:03:25.668 --> 02:03:26.927
my personal financial

02:03:26.927 --> 02:03:27.907
planning and

02:03:27.997 --> 02:03:28.938
asset management."

02:03:29.877 --> 02:03:31.058
He's a smart guy,

02:03:31.098 --> 02:03:32.107
but he knew nothing.

02:03:32.438 --> 02:03:33.267
He was starting off

02:03:33.298 --> 02:03:34.447
with  what's a debit,

02:03:34.458 --> 02:03:35.357
what's a credit?

02:03:35.557 --> 02:03:35.887
Yes.

02:03:36.067 --> 02:03:37.388
And  he said by

02:03:37.388 --> 02:03:38.197
the end he learned

02:03:38.548 --> 02:03:39.818
the 200 terms that

02:03:39.818 --> 02:03:40.788
you need to- Okay

02:03:40.788 --> 02:03:41.877
… learn to understand

02:03:41.877 --> 02:03:42.488
the language.

02:03:43.317 --> 02:03:44.207
10 years later,

02:03:44.208 --> 02:03:44.857
he m- he was

02:03:44.857 --> 02:03:45.697
making a fortune.

02:03:45.697 --> 02:03:46.958
He was doing a really

02:03:46.958 --> 02:03:47.897
successful job of

02:03:47.897 --> 02:03:48.727
managing his own

02:03:48.727 --> 02:03:49.427
money, just with

02:03:49.477 --> 02:03:50.417
two hours a week.

02:03:50.827 --> 02:03:51.287
But that's why

02:03:51.287 --> 02:03:51.847
I get back to

02:03:51.848 --> 02:03:52.707
your time budget.

02:03:52.717 --> 02:03:53.387
You have to

02:03:53.867 --> 02:03:55.007
say, one, I take

02:03:55.007 --> 02:03:55.807
responsibility.

02:03:55.807 --> 02:03:56.527
Two, I'm gonna

02:03:56.537 --> 02:03:57.708
allocate time.

02:03:58.028 --> 02:03:58.747
It's better if

02:03:58.748 --> 02:03:59.238
you can do it

02:03:59.238 --> 02:04:00.077
as a family.

02:04:00.197 --> 02:04:00.357
Yes.

02:04:00.577 --> 02:04:01.108
If you can do it

02:04:01.108 --> 02:04:01.947
with your spouse, if

02:04:01.947 --> 02:04:02.648
you can do it with

02:04:02.648 --> 02:04:03.757
your kids, whatever.

02:04:04.877 --> 02:04:06.527
And then what he said

02:04:06.537 --> 02:04:07.608
was, he just said,

02:04:08.217 --> 02:04:09.248
" I can learn this."

02:04:10.007 --> 02:04:10.967
I can learn this."

02:04:11.357 --> 02:04:12.678
And part of doing a

02:04:12.678 --> 02:04:13.747
great job at learning

02:04:13.748 --> 02:04:14.797
this is when somebody

02:04:14.797 --> 02:04:15.938
tries to snooker

02:04:15.947 --> 02:04:17.488
you by making it

02:04:17.488 --> 02:04:18.457
complicated, you just

02:04:18.458 --> 02:04:19.938
say, "Excuse me, I

02:04:19.947 --> 02:04:20.857
don't understand.

02:04:20.867 --> 02:04:22.417
Say that again." Yes.

02:04:22.657 --> 02:04:23.157
And,  And,

02:04:23.157 --> 02:04:23.618
and you can

02:04:23.627 --> 02:04:24.357
be inspired.

02:04:24.357 --> 02:04:24.817
You can say, "I

02:04:24.888 --> 02:04:26.907
wanna do this for the

02:04:26.927 --> 02:04:28.197
benefit of my spouse

02:04:28.197 --> 02:04:29.037
or my children."

02:04:29.697 --> 02:04:31.558
And  you're doing it

02:04:31.568 --> 02:04:32.247
for the betterment

02:04:32.247 --> 02:04:33.317
of  your family.

02:04:33.598 --> 02:04:34.058
It can be.

02:04:35.577 --> 02:04:37.607
The only way…  I

02:04:37.607 --> 02:04:38.337
have to tell you,

02:04:38.337 --> 02:04:39.357
so our title on

02:04:39.357 --> 02:04:40.377
the student loan

02:04:40.617 --> 02:04:42.917
piece, Tim, was

02:04:43.977 --> 02:04:45.007
Student Loans: The

02:04:45.007 --> 02:04:46.327
Fraudulent Enticement

02:04:46.458 --> 02:04:47.927
of Family Wealth.

02:04:49.287 --> 02:04:49.947
And it is.

02:04:49.987 --> 02:04:51.087
It is a fraudulent

02:04:51.087 --> 02:04:51.868
inducement, not

02:04:51.868 --> 02:04:53.157
of just the young

02:04:53.157 --> 02:04:54.247
person's wealth, but

02:04:54.247 --> 02:04:55.068
the family wealth.

02:04:55.187 --> 02:04:55.467
Yes.

02:04:55.477 --> 02:04:56.857
' Cause  so many

02:04:56.857 --> 02:04:57.568
families have been

02:04:57.568 --> 02:04:58.587
drawn into this.

02:04:59.137 --> 02:05:00.397
And here's the thing.

02:05:00.407 --> 02:05:01.097
If you look at the

02:05:01.098 --> 02:05:01.957
great poisoning,

02:05:02.267 --> 02:05:04.658
first  you put young

02:05:04.658 --> 02:05:05.707
people in tremendous

02:05:05.708 --> 02:05:06.977
amounts of debt, and

02:05:06.977 --> 02:05:07.907
then you poison them.

02:05:09.068 --> 02:05:09.907
That's a double

02:05:09.928 --> 02:05:10.897
fraudulent inducement

02:05:10.897 --> 02:05:11.728
of family wealth

02:05:11.728 --> 02:05:12.298
right there.

02:05:12.437 --> 02:05:12.977
Yes.

02:05:14.197 --> 02:05:15.387
And if they try and

02:05:15.398 --> 02:05:16.507
add a draft onto

02:05:16.508 --> 02:05:19.867
it,  now, even though

02:05:19.898 --> 02:05:20.777
this sounds very

02:05:20.777 --> 02:05:21.787
gruesome, the people

02:05:21.788 --> 02:05:22.777
I know who've, who

02:05:22.777 --> 02:05:24.107
face this and realize

02:05:24.107 --> 02:05:24.697
this is how the

02:05:24.697 --> 02:05:26.157
system works, have

02:05:26.157 --> 02:05:27.327
been m- have managed

02:05:27.327 --> 02:05:28.488
to navigate it and

02:05:28.488 --> 02:05:29.897
avoided all those,

02:05:29.967 --> 02:05:30.807
all that fraud.

02:05:30.928 --> 02:05:31.148
Yeah.

02:05:31.148 --> 02:05:31.818
They're fine.

02:05:31.958 --> 02:05:32.178
Yeah.

02:05:32.178 --> 02:05:32.558
They're in

02:05:32.568 --> 02:05:33.378
great shape.

02:05:33.687 --> 02:05:33.957
Yeah.

02:05:34.678 --> 02:05:35.637
So taking

02:05:35.637 --> 02:05:36.777
responsibility

02:05:36.827 --> 02:05:38.327
really can work.

02:05:38.517 --> 02:05:39.067
Yes.

02:05:40.437 --> 02:05:40.977
Okay.

02:05:40.987 --> 02:05:41.007
Yeah.

02:05:41.008 --> 02:05:41.367
It's taking

02:05:41.367 --> 02:05:42.027
responsibility

02:05:42.027 --> 02:05:43.147
and then just, if

02:05:43.148 --> 02:05:43.647
anything, a lot

02:05:43.648 --> 02:05:44.347
of times just not

02:05:44.348 --> 02:05:47.044
complying With some

02:05:47.044 --> 02:05:47.884
of these-  the most

02:05:47.884 --> 02:05:48.614
egregious things.

02:05:50.534 --> 02:05:50.904
Okay.

02:05:51.154 --> 02:05:52.404
On that hopeful note-

02:05:53.654 --> 02:05:55.154
…  The  Jeremy

02:05:55.154 --> 02:05:57.443
Grantham says all 26

02:05:57.464 --> 02:05:59.074
bubbles have ended.

02:05:59.894 --> 02:06:00.934
What we don't know is

02:06:00.953 --> 02:06:02.523
when this one will.

02:06:02.533 --> 02:06:02.553
Yeah.

02:06:02.943 --> 02:06:03.554
Or how much

02:06:03.554 --> 02:06:04.573
higher it will go.

02:06:04.603 --> 02:06:06.483
It's a, as Rambus

02:06:06.494 --> 02:06:07.934
said, we're at an

02:06:07.934 --> 02:06:08.974
inflection point.

02:06:08.974 --> 02:06:09.794
We have no idea

02:06:09.794 --> 02:06:10.593
which way it's gonna

02:06:10.603 --> 02:06:11.884
break, and it's gonna

02:06:11.884 --> 02:06:12.893
require patience.

02:06:12.894 --> 02:06:14.384
So with that, Tim,

02:06:14.394 --> 02:06:15.383
thank you so much

02:06:15.384 --> 02:06:16.143
for joining us on

02:06:16.144 --> 02:06:16.953
the Solari Report.

02:06:16.953 --> 02:06:17.713
Ladies and gentlemen,

02:06:17.714 --> 02:06:18.173
thank you for

02:06:18.173 --> 02:06:19.014
joining us on the

02:06:19.464 --> 02:06:20.134
Solari Report.

02:06:20.144 --> 02:06:20.944
Tim and I will be

02:06:20.944 --> 02:06:21.753
back with a third

02:06:21.754 --> 02:06:22.544
quarter equity

02:06:22.544 --> 02:06:23.413
overview, which will

02:06:23.423 --> 02:06:26.573
be right, either…

02:06:27.923 --> 02:06:28.733
It'll be right after

02:06:28.734 --> 02:06:29.794
the election, right?

02:06:29.934 --> 02:06:30.503
I'm sure we'll have

02:06:30.504 --> 02:06:31.343
a lot to talk about.

02:06:31.754 --> 02:06:32.403
We will have a

02:06:32.403 --> 02:06:33.494
lot to talk about.

02:06:33.554 --> 02:06:34.274
Anyway, have a

02:06:34.274 --> 02:06:35.293
great third quarter.