Kind: captions
Language: en
you've done everything right you went to
college you got a good job you've worked
hard and gotten promoted but you're
still living paycheck to paycheck and
the same is true for most of your
friends and all of you want to know why
in the hell it seems to be impossible to
get ahead how can it be that the
American dream is dead how is it
possible that the Boomers could buy a
house with a stick of chewing gum and
some match sticks and you've been forced
to give up on ever owning a home welcome
to the world of inflation where your
money is worth less every year no matter
how hard you work I am Tom Bilu and
today I'm going to help you understand
why inflation feels like your wallet is
being dry humped by the Grinch and most
importantly what you can do about it and
what you can do about it is the
important part here because even if the
game is rigged you can learn how it's
played and you can still get ahead first
a
definition what is inflation simply put
inflation is prices going up over time
but while some would have you believe
inflation is good or a natural law of
the universe the reality is that
long-term inflation rips countries apart
from the inside by stealing your
purchasing power and incentivizing the
accumulation of debt at the individual
and governmental levels it is the great
deranging force that makes you want to
adopt a boomer just to drown them in the
bathtub now I'll explain how in a minute
but I'm telling you right now once you
see that inflation is the primary method
by which wealth is transferred from the
the poor and middle class to the wealthy
you cannot unsee it and that's why I
talk about this on an endless loop now
listen inflation is not the only problem
but it is the biggest problem so it's
going to be my focus today now if
inflation is the price of things going
up over time why do I call it government
approved counterfeiting because of the
underlying thing that causes the prices
to actually go up and what is that
underlying thing the government printing
money out of thin air so that they can
spend more money than they bring in in
taxes now why would they want to do that
because then politicians do not have to
get you to vote for a tax increase when
the bill comes due for all the things
that they promised to give you
politicians by Nature are in the
business of both governing and getting
reelected and to get reelected they have
all universally all throughout human
history realized that promising to give
you fre free stuff is the very thing
that's going to get them reelected the
bad news is that there really is no free
lunch but what you're living through
right now is that you really can make
someone else pay for a huge portion of
that lunch here's how it works when the
government prints money out of thin air
each dollar becomes worth a little bit
less think of it this way it's like
pouring some coffee into a giant mug
every bit of water you add to The Mug
dilutes the coffee that's why the
government can't just print a ton of
money and make everyone a billionaire
that would be the equivalent of pouring
a tsunami of water into a thimble full
of coffee it's what's known as
hyperinflation and it makes money
worthless just as too much water would
make it impossible for you to taste a
coffee too much money makes it
impossible to buy anything it is the
great irony of this Grand counterfeiting
the money ultimately has no remaining
value you can think of it another way if
there is one pizza for sale and everyone
has $100 maybe people are willing to pay
$10 for the pizza P but what if there is
only one pizza still but everyone now
has a billion dollar how much would they
be willing to pay for that same Pizza
Millions it's certainly possible as a
percentage of the money that they have
and that's why you can't print more
money unless at the same time you add a
corresponding amount of things that
people want to buy now I can hear you
saying yeah but Tom we're only talking
about 2% inflation why should anyone be
scared of that if I get all of my free
stuff promised to me by the politicians
in their bid to get reelected why should
I care about the government printing 2%
new money and the answer is very simply
compounding compounding interest has
been referred to as the eighth wonder of
the world here's why 2% annual inflation
in just 5 years will steal almost 10% of
your purchasing power in 10 years that
number jumps to nearly 20% so while
you'd still see 100 $ in your bank
account that $100 after just 10 years
would only buy $80 worth of stuff also
2% is just the target according to true
flation the real compounded interest
rate over the last five years alone was
over
25% thanks to unprecedented deficit
spending in printing by the government
to all of the people that will have you
believe that money printing is not the
cause of inflation I say this there are
studies that show a 0. n correlation
between money Printing and inflation one
would be perfect correlation we're at 0.
n so we are but one tenth of a point off
from there being a perfect correlation
between money Printing and inflation I
think we have found the Smoking Gun more
money in the system means higher prices
period now before I explain how
inflation exactly facilitates the great
wealth transfer from the poor and middle
class to the wealthy and from The Young
to the old another fascinating side
effect let me give the devil its due
inflation really does have an upside
like all bad things that manage to stick
around it really does just enough
short-term good that people cannot stop
themselves from doing it think of it as
a cocaine Bender pref fenal once in a
while probably isn't going to kill you
but get addicted and you are toast and
as a society we are officially addicted
to the upside of inflation and that is a
two-fold problem inflation creates
momentum in the economy that's number
one one because your money is going to
be worth less than a year you're
incentivized to spend your money and not
save it that gets the economy humming
and that is a very good thing and when
you keep inflation to roughly 2% a year
people cannot figure out why they're
having trouble getting ahead inflation
also allows Capital to be aggregated
that is number two people being willing
to amass a large amount of money isn't
actually bad it is a good thing you
would not want to live in a world where
Capital couldn't be aggregated it's
beyond this scope of this video but I'll
just say this all of the cool stuff in
your life like your computer the AC
that's keeping you right now either warm
or cool your iPhone that you're probably
listening to this on and the internet
itself are all the result of someone
making enough money that they could take
some crazy risks and fund insane
projects that have on mass led to good
things now those things sound pretty
good I assume so what's the problem
right that's the question first and
foremost it is immoral to secretly take
people's money taxes are one thing vote
for what you believe in but it's
something else entirely when the
government print money racks up huge
deficits which is the same as rating the
bank accounts of future people and then
distributes the rated funds in a way
that makes the rich richer and the poor
poorer all right we've now reached a
point in the story where I'm going to
have to explain exactly how inflation
your government legally counterfeiting
money so they can secretly siphon off
your purchasing power to supposed give
you free things which in the final
analysis aren't actually free they're
just reaching into your wallet and
taking the money without having to ask
your permission imagine this your Rich
friend let's call him gov your Rich
friend gov invites you out to this
incredible free lunch he likes you
really wants you to like him so he says
he's going to throw a lavish bash in
your honor it's going to be insane you
do not want to miss this absolutely
decadent and did he mention that it's
all free he's going to pick up the tab
you don't have to worry about anything
all you have to do is show up and enjoy
yourself you go and it really is amazing
it's like a Roman Feast Fit For A King
you wonder to yourself how on Earth is
he going to pay for all of this sure you
give him some money every year to help
him do cool stuff for you but nothing
like this at the event gov gives an
incredible speech he calls you out he
says this is to honor you and the other
attendees at the party that you guys
deserve this kind of lavish treatment
and it's all free the bad news is during
that speech a hacker goes into your bank
account and steals from everyone at the
party equally to pay for the feast and
there's nothing you can do to stop them
whatever it's only 2% of your money
right and that was a pretty epic party
wrong the problem is this is where we
have to let go of the analogy because
the government doesn't actually steal
your money they counterfeit it and that
steals your purchasing power remember
it's like diluting your coffee with a
bunch of water and here's the kicker
someone is going to receive those
counterfeited dollars this is the part
of the heist that everybody misses the
counterfeited dollars might not be worth
a full dollar but they're still worth a
lot and someone is going to benefit from
those and it's going to be unevenly
distributed but why the rich right is it
just because they're friends with the
politicians and the bankers certainly
part of the story and I'll explain that
in a minute as we get into debt but it's
not the full story this is where we have
to talk about what happens when the
money is counterfeited at scale you lose
your purchasing power as we've discussed
you're incentivized to spend rather than
save people start accumulating debt more
on that later prices go up on the things
you want to buy again as we've
discussed but and this might be the most
important what we haven't discussed is
that the price of the things you own and
could sell also go up now if you own
what are called assets you're in great
shape as the government inflates the
money supply and prices go up due to
inflation you've got a bunch of cool
stuff that people might want to buy and
you can now sell them for higher prices
in fact the prices of what are known as
inflation resistant assets go up roughly
the same amount as inflation it's never
exact but it's close now what are assets
things like stocks bonds real estate
precious metals gold silver Bitcoin coin
art things like that okay cool but one
more time how does this make the rich
richer and the poor poorer fun fact not
everyone who owns assets is Rich but
basically every rich person owns assets
it is like rich person 101 and I am not
joking the second I made my money money
managers came out of the woodwork
offering to help me manage my money and
lesson number one buy assets that was
the thing that they were drumming into
my head and here's why when the money
supply is inflated the price of assets
go up so if you know the government is
going to print money and they are then
you need to own assets as a way to
protect yourself against that inflation
now here's a breakdown of exactly the
way that this happens because there are
only so many valuable assets available
in the world they retain their value as
the dollar gets diluted whenever people
have more money but the number of things
available to buy stays the same prices
go up remember that pizza so rule number
one of beating inflation is to buy
things AKA invest or in my words gamble
on things you think will go up in value
by at least as much as the money supply
is being inflated so anyone holding
inflation resistant assets is going to
see their net worth go up as the money
is printed it's not technically that the
assets have gone up in actual value it's
just that the dollar has gotten weaker
going back to the coffee analogy if
caffeine is what you really want and I
pour a bunch of water into your coffee
it takes a lot more mugs of that water
down coffee to get the same caffeine
Buzz so it is with asset prices it's not
that your 401k actually went up in value
or that your house even went up in value
it's that it takes more of your weakened
diluted dollars to get the same
purchasing power now guess who's Savvy
enough or able to pay Savvy people to to
advise them to own assets wealthy people
that's the first part of how the rich
get richer they don't have to be corrupt
to beat inflation they just need to know
how to strategically own assets to at
least match inflation the second part of
how a very small number of the rich get
richer is that when the government is
injecting printed money counterfeited
money into the system they do so mostly
through buying debt both governmental
and corporate but that means that the
government has to decide has to make a
decision who's that they're going to buy
they are literally picking winners and
losers now it is very important to note
that there's a very complex interplay
between the FED which is technically not
an arm of the government and the
government itself for how much money is
printed and where it goes but that is
beyond the scope of what we're talking
about today so I'm not going to be going
into all that as I'm convinced that
people hide the truth of money Printing
and inflation in the complexities they
want you to get lost in how complex this
is in the nuances that stuff doesn't
really matter when you lay it bare it's
pretty easy to follow and it is
extremely shocking what's happening
speaking of shocks let's have our final
shock before we talk Solutions inflation
triggers a massive accumulation of debt
just like a lot of salt makes you
thirsty inflation encourages both people
and the government to take on debt a lot
of debt why the reason is twofold one if
dollars are going down in value over
time then borrowing 20K now is like
having only borrowed say 10K at some
point in the future and given that
that's true Savvy people use debt as
leverage to buy assets that their
betting will go up in value as the value
of the borrowed dollars decline so as
people just trying to save their money
get hammered by inflation Savvy
investors using debt to buy assets not
only have a good chance of keeping up
with inflation but the really Savvy ones
can make a return that far outpaces
inflation making them wealthier over
time the second reason that people take
on debt in an inflationary environment
is that because for the average person
debt is the easiest way to get access to
more Capital when saved money is losing
its value this is doubly true if w es in
real AKA inflation adjusted terms are
not going up okay that's inflation in a
very small nutshell now what do you do
about it we'll get back to the show in a
moment but first I have an important
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the show here it is first understand the
game you're playing rewatch this video
pursue a deeper understanding of how
money printing assets debt and the
social unrest that people are feeling
right now because they cannot get ahead
all work together next remember your
money is being inflated away it does not
matter how many dollars you have in the
bank matters how much stuff you can buy
with that money always think of your
money in what's known as real terms not
nominal terms real terms just means
adjusted for inflation nominal means not
adjusted for inflation so yes you have
$100 in your bank account but it only
buys $80 worth of stuff a really good
calibration is the cost of energy in
dollar terms energy is arguably the most
important thing you will buy that isn't
directly related to your safety and
survival and honestly many of the things
related to your safety and survival are
tied to energy if you Benchmark your
purchasing power against for instance
how much oil it will buy you'll have a
very good barometer of where things
actually stand I know most people won't
do that but it is is a good reminder
that it doesn't matter if you have
$1,000 in your bank account if the cost
of gas is too high as that affects
virtually everything else in the economy
you need to shift your thinking from
assets are a nice to have to assets are
a must you have to find a way to save
money that won't be devoured by
inflation or as Savvy people say you
need an inflation resistant way to store
your
wealth get involved in the stock market
but remember it's risky investing is
best understood as gambling now people
absolutely hate it when I call the stock
market gambling but it is indeed
gambling I'm not saying it's bad it's
great the financial markets are
incredible they're a miracle all I'm
saying is that when you invest in the
stock market or any asset class you're
taking a risk you're placing a bet that
its future will be better than its
present and someone will buy them from
you for more than you paid if that was
guaranteed the system wouldn't work in
fact the only reason you get a return on
your investment is because you are
taking a risk if you weren't there would
be no
return and to my point that the stock
market is best understood as gambling
the literal Oxford dictionary definition
of gambling is to take risky action in
the hope of a desired result to push it
even further investing in the stock
market is gambling at two levels one as
the definition says you're taking a risk
for a desired result and two public
company stocks are not based on
fundamentals I don't care what anybody
tells you they're priced based on human
sentiment recently the stock market saw
the biggest single day swing it moved by
a trillion dollars in a single day based
on news just news that deep seek an AI
company May indicate that Nvidia won't
be worth the same in in the future as it
is today nothing changed in the
fundamentals of nvidia's business it was
pure speculation about the future of
nvidia's business and not even quite
that it was pure speculation about how
people will feel about nvidia's future
business which is another way of saying
that the sentiment changed and the stock
market is all about placing bets on
which way the sentiment will change
because believe it or not you can
actually make a lot of money betting on
a company doing worse in the future but
that is definitely a story for another
day I want to say it one more time the
stock market is incredible I love it the
most I am very very glad that it exists
I believe strongly that not only should
people be able to invest in the stock
market they should be able to gamble on
any legal activity that they want I
further believe that the US Stock Market
has contributed massively to America's
economic might I just don't think people
should be put in a position where
they're forced to place debts on any
asset in order to keep up with the
government stealing their money through
inflation now if you're looking for the
lowest risk way to store your wealth
that's short-term us treasuries as long
as the yield that they provide is close
to the rate of inflation you can keep up
by owning an asset back by the US
government the treasury yield in fact is
literally known as the risk-free rate of
return if you're looking for a simple
manageably risky way to store your
wealth index funds can also be useful if
you really want to get fancy and try to
capture more upside have a chance of
significantly beating inflation but
still you want to keep your risk
tolerable read up on Ray Doo's all
weather portfolio the tldr is to hold
Assets in 12ish uncorrelated asset
classes he makes it sound pretty simple
but I think the average investor is not
going to learn enough to pursue this
strategy but Ry has been insanely
successful in the markets and this is a
strategy he said he would recommend to
his own family if he wasn't around to
help all right for those of you
wondering what I personally do I'll tell
you but this is aggressively not
Financial advice I'm good at making
money but very dubious at investing it's
also important to note that this is a
snapshot as of the moment when I
recorded this video I may change things
at any time but for now the bulk of my
investments fall into the following five
asset classes one short-term treasuries
for reasons I explained previously two
equities aka the stock Market three
Bitcoin four real estate and five my
businesses uh which has been my most
lucrative investment to date betting on
myself all right that is the truth about
inflation it's government approved
counterfeiting that slowly drains your
wealth forcing you to gamble just to
stand still yes the game is rigged but
once you learn how it works you really
can play to win all right not everyone
is going to agree with everything that
I've said so I want to address some of
the most frequently asked questions and
challenges that I get yet there has
never on the history of anything been 0%
inflation it happens in literally every
country everywhere and is simply part of
any system that uses currency how much
inflation happens is where the argument
should be that is literally not true so
if you look at Japan you don't have to
go back very far to see that there was a
period recently where they had negative
uh inflation AKA deflation now if you're
saying that this is all a spectrum and
that it's either going to be deflating
to inflating and some people are going
to claim that deflation is worse which
again also is only true if you're
looking at crisis born deflation because
technology is inherently deflationary we
never notice it because the government
is so busy inflating the currency that
they are gobbling up what would
otherwise be driving costs down uh but
it is admittedly very difficult to find
that sweet spot but when you look
meaning uh even gold inflates because
we're going out we're mining we're
finding roughly 2% more in the gold
Supply so that's going to go up uh but
if you look at Bitcoin Bitcoin is
literally designed to be what's known as
sound money something that is not
inflating now there have been periods of
time where we get closer to sound money
uh when you f if you go back and look at
the dollar was originally on the gold
standard so it inflated but very slowly
in a very controlled way where you
actually had to go out and get more gold
in order to Peg the dollar to it but the
reason that you're seeing the rise of
Bitcoin is because it is a truly
non-inflationary asset and so people are
investing in it precisely because it
can't be inflated so this people really
have to break this idea that this is uh
an inviable law of nature that something
is going to inflate it does not have to
inflate prices do not need to go up that
it really is mechanistically cascading
down off of more than just inflation I
understand that but again looking at
that point 0.9 correlation they are so
tightly correlated that over time it is
far simpler and far more accurate quite
frankly to say as we counterfeit the
money as we print money as we inflate
the supply of money that prices are
going to go up accordingly I think
that's the right way to look at it now
again there are complexities here but I
think it is far wiser to strip those
away and ask why are people so excited
about a non-inflationary asset like
Bitcoin what is it that it allows you to
do and what it allows you to do is stop
people from abusing that privilege of
being able to reach into your pocket and
steal your purchasing power that is the
real key once you understand that it is
an invisible tax inflation is an
invisible tax once you ask yourself why
is it okay for the government to
counterfeit money but I can't
counterfeit money you begin to
understand why this is a problem once
you start asking why can't they just
print a billion dollars and give it a
billion dollars for everybody and give
it to them why do they need to take in
tax money if they can just print why do
we run up these huge deficits if we can
just print money
because it is it is impossible to avoid
the consequence of
inflation if you're not increasing
productivity and really what the
government is trying to do is they're
trying to Pace that productivity by
gobbling it up and printing money how
that takes in account government bonds
why is he not mentioned that private
banks are also responsible for
increasing the money supply whenever
they lend money not trying to defend the
government but that level of
simplification always leads to
falsification I love that and thank you
for giving me a chance to say one of my
favorite phrases which is the da that
can be spoken is not the Eternal da if
you've ever read the book The da ding
one of the I can't remember if it's the
opening paragraph but it talks about
that what it's the Dow translates as the
way so you could take that phrase to
mean the path that can be explained is
not the actual path so for sure in
simplifying this enough that it can
actually be spoken out loud and that
people can understand it you are for
sure lopping things off and making it um
not literally true but it allows people
to navigate and I value an ideas uh
Merit based on its utility and so when I
think about the world as okay as they
inflate the money supply I'm going to
need to be an assets that are inflation
resistant that correlation is 0.9 that
acting in accordance with that it works
perfectly but you are correct that
another way that the money supply is
inflated but again it's still just the
inflation of the money supply is the way
that fractional Reserve banking works
and we could do a whole thing on
fractional Reserve Banking and How
Deeply problematic it is uh because I'm
not saying hey fractional Reserve
banking is wonderful but other ways of
inflating that's terrible uh they are
all problematic every bank is insolvent
and if you did a quote unquote run on
the bank you would expose that they hold
I think it's less than 10% of your money
they actually have crazy but true which
means if people moved on the bank you'd
only be able to get a little bit less
than 10 cents on the dollar and quite
frankly it wouldn't work like that
because what they would do is they give
it to the first people that ask and this
is why people run on the bank so yeah
welcome to another dark corner of how
money Works still inflating the money
supply what about private businesses
price gouging Private Business price
gouging uh this feels like a totally
unrelated thing but I know that people
have this sense that the real battle
isn't the government making decisions to
print the money that the real battle is
with corporations being greedy and not
paying their fair share all right first
of all capitalism because of something
known as regulatory capture because of
the inflation of money supply there are
things that must be addressed there is
no doubt about that if you were to
remove the government in there trying to
intervene and trying to outsmart the
market trying to make sure that
everything is sort of this eternal
Flatline but if you think about it it's
an eternal Flatline that's going like
this it's degradating everybody's uh
value in terms of the money that they
hold so yes it's a smooth slow decline
into Oblivion uh but as Ray Delio says
every country ever has printed so much
money that the money ends up hyperin
lating literally every currency every
Reserve currency ever throughout human
history all the way back they've all
done it they end up printing too much
money that inflation of the money supply
causes that debt accumulation that I was
talking about the debt accumulation gets
to the point where you can no longer
service the debt and it either ends with
people um internally fighting and you
have a civil war you have a war with
another country uh but it almost never
resets without Bloodshed so just to be
very clear about how the game plays out
okay so now to actual corporate price
gouging the reality is that the market
will bear what the market can bear and
in a time of emergency if you try to go
in and layer over the top of it that
we're not going to let the market set
the price here we're going to tell
people how much they can change it that
might feel good morally but I'm
recording this not too long after the
historic fires here in Los Angeles where
they're talking about putting price caps
on the people that will come in and
rebuild these homes Now by doing that
what you're saying is we're going to
make this take a lot longer because the
price that somebody is willing to pay
for it is a proxy for value and so if
you want people to come in and say oh I
value my time here in Los Angeles
Building Homes more than I value my time
in Denver Building Homes you let people
raise their hand and say I value this
construction here more and as I want to
as the home builder I want to capture
that value I'm going to go there and I'm
going to say these houses uh from a
timing perspective are more valuable to
build and so now you're able to draw in
people from all over the world to get
them to build houses in this one area
when you don't let them do that you
derange the market it ends up taking way
longer and you're not able to get that
Talent from everywhere to come and
address this it's like surge pricing in
Uber the second you don't let them do
surge pricing now they're just going to
be times where you can't get a car and
so now somebody trying to use that
service is like hey I would very much
like this price to quote unquote gouge
me so that I could get home and I will
plan if I want to avoid these hi traffic
times but at least I now have an option
why do I still feel just as doomed and
lost after what I experienced was just
validated so the bad news is that you
still are in the situation that you're
in if you've not yet gotten your life
organized such that you can begin to
accumulate wealth it is going to be very
disheartening and there's a really
fascinating way to think about what
money is that I think will bring this
home money is the thing that allows you
to
concretize the output of your time
meaning you go do a thing now what is
the proof of work you get money for it
so that proves that you spent that time
wisely now when you spend that time
wisely you get that money but it's
devalued over time you're never able to
get ahead and so there's a sense of like
this is futile why am I working this
hard why am I trying to be smart why am
I being disciplined and dedicated this
doesn't make sense like no matter how
hard I work I'm getting myself in
trouble don't get me started on
education and debt for education and all
that which puts people behind the
eightball before they even begin but all
of that is the thing that leads people
to feel like yo this is futile because
the I am not able to capture the value
of my own time it's I'm putting it into
a leaky
bucket and once you start rearranging
your life and saying okay look I don't
like the way that I feel right now the
system feels very broken but I'm going
to set that emotion aside because there
are structural things that I can do with
my life that I just outlined in the
previous section of the video to make
sure that I'm
transferring that proof of work into an
inflation resistant asset that over time
is going to allow me to sidestep the
ravages of inflation so instead of
buying what are known as unproductive
assets uh things that are fun to have um
going on a vacation a lot of fun but the
reality is if you took that money and
you put it into an asset if you're Savvy
enough in the way that you gamble and it
is gambling then over time you're able
to amass wealth that will let you live
instead of off the principal you're able
to live off of the interest that you're
recruiting going back to this idea of
compounding interest is the eighth
wonder of the world it really adds up
when you're doing it well and now if you
do it well you can outpace inflation and
you're able to grow your wealth over
time now when you get into that Loop it
feels a lot better but if you're hearing
this at like 35
45 it hurts man it stings but this is
the reality of the world that we live in
now for better or worse this stuff moves
in cycles and that's why if you're
paying attention you feel something is
happening to the American psyche right
now and that's because we are we're at
the phase of the debt cycle where we
have accumulated so much debt that we
are having to inflate our currency so
rapidly in fact look at your screen
right now and you will see a graph of
how much we have inflated the currency
just in the last five years and how
rapidly we're accumulating debt it is
insane and so we are going to need
something called a debt Jubilee now that
has a really great name but that's the
thing that people die over this is the
thing that causes blood in the streets
because if you owe somebody money that's
somebody else's asset that debt they own
your debt that's their asset when you
don't pay that debt they just get wiped
out great for you bad for them flip it
if you're the one that owns the asset
then you get wiped out but this is why
young people especially have this burn
it all down energy because they're like
hold on a second you're telling me if
there's enough Bloodshed in the streets
that I can get rid of my debt I'm here
for that and that is how this all ends
up just
in heartbreak Devastation and look I
don't want to fear Monger but I'm just
telling you throughout history the
number of times the cycle has played out
and it ends so frequently it's not 100%
of the time but boy oh boy is it
frequent that it ends in Civil War
external War um bad things or
cataclysmic debt restructuring via a
massive recession or depression now a
recession would be far preferable to
kinetic War uh but you don't get to the
other side of where we're at without one
of two things and here is your Ray of
Hope the pain or productivity remember I
said
that the reason that the pizza ends up
going up in cost is because people are
getting more money but they're not
getting more pizzas but what if you
created more pizzas What If instead if
there's four people fighting over one
pizza we give them a bunch more money
but let's say that we give them 10 times
more pizzas than we give them money now
the cost of the pizza actually goes down
so that is the promise of innovation
this is why I'm obsessed with two things
finance and how money really works and
Ai and I'll throw in deregulation just
for spice if we can get the US economy
if any country can get their economy
growing at a level of say instead of 2%
you're growing at a level of four or 5%
now all of a sudden you can drive your
debts down because you're so productive
and so AI really is the great hope for
this generation that AI makes good on
the promise and all the hype that we
believe because if AI can come in and
drive energy costs down if AI can come
in and make Goods of basically every ilk
cheaper and cheaper and cheaper now all
of a sudden we can really get the
economy humming things cost a lot less
people's quality of life goes up so you
deregulate you get businesses far more
productive you get the economy humming
you get Innovation from AI driving
energy cost down driving labor cost down
and now all of a sudden you could have
uh you could be one of those few
societies that manag to get that debt
Jubilee not through violence but through
Innovation and that is my hope and
that's why man if you hang on on this
channel long enough you're going to hear
me talk about those two things on a loop
those three things you're going to hear
me talk about Finance the regulatory
environment and the grand hope of AI all
right everybody stay safe out there boys
and girls lean into Innovation learn how
the game works and play to win until
next time my friends be legendary take
care if you're a business owner looking
to scale I can help I assume you're here
because you know the world is a
freakishly complicated place but with
the right rubric for decision making you
can navigate even the most complex
problems well after scaling my last
company to a billion dollar exit I knew
I had a winning formula something I call
the physics of progress it works in any
industry in any economic climate bull
market bare Market doesn't matter every
complex problem can be solved if you
know how to approach it from first
principles in the end that's how you
avoid getting trapped in plateaus think
about the biggest challenge facing your
business right now maybe your Revenue
drops every time you step away maybe
your industry is affected by tariffs or
your business partner is holding you
back maybe your marketing is no longer
working or you hate social media and
everyone tells you that's where you have
to be these problems can seem impossible
until you approach them from first
principles that's exactly what I teach
inside the billion doll CEO program I'm
only working with a select group of
entrepreneurs right now but if you've
got a real business and are looking to
scale apply now visit impact theory.com
scaling or click the link in the show
notes to apply again that's impact
theory.com
scaling if you like this conversation
check out this episode to learn more to
me the economy is like a chessboard once
you see where all the pieces are you can
get a sense of where you are in the game
and um what is most likely to happen
next in the near-term as you look at the
set piece right now of a a rightwing
popular