Kind: captions
Language: en
[Music]
I wish that we were talking about better
news I saw a video that you created
about how the average person doesn't
understand what we're about to go
through and as we sat down to record
this svb just got frozen Silicon Valley
Bank
um looks like there's going to be a
tremendous amount of capital lost and
thinking about what I'm calling the
triangle of Doom with interest rates a
slowing economy and inflation how does
this all play together with what just
happened and how does the average person
if they don't understand what we're
about to go through how do they protect
themselves yeah svb Financial is really
interesting because it's kind of a
byproduct of what you just talked about
the triangle of Doom so we have still
have very high inflation
and that high inflation is slowing down
the economy now to fight the high
inflation the Federal Reserve Bank is
working to raise interest rates
now higher interest rates help to cool
down inflation but that also slows down
the economy now the case of SBB
Financial the bank is really interesting
because
they have been lending money to a lot of
startups like Silicon Valley startups
and when you have low interest rates
it creates ease of access to money
because like if you can borrow money for
two percent I mean you only need a four
or five percent return on your money to
justify making an investment but if you
have to borrow money at 10 now you need
a much higher return on your money to
justify that investment and what we've
been seeing is this is not just svb I
mean there's a lot of examples of this
but what we've been seeing happen is
investment institutions Venture Capital
firms Angel firms and startups had such
easy access to money I mean of course
we've printed trillions and trillions of
dollars over the last number of years
but now if you wanted to raise money
Venture Capital firms are sitting on
boatloads of cash and they're competing
against each other to get the best
investments and so we saw the valuations
of everything rise obviously we saw home
prices Skyrocket over the last couple of
years the stock market skyrocketed even
though we were going through the worst
recession during the pandemic since like
the Great Depression
the stock market grew real estate prices
grew startup valuations went through the
roof and the reason why these valuations
went through the roof is because now
every Bank every investment institution
is competing against each other with
both loads of cash trying to get into
these firms now svb financially like I'm
gonna be completely honest like this is
happening right now so I only know based
off the information that has come out
over the last you know number of days so
I'm giving you just based off of this
things can change by the time this goes
live
but they were lending money
to a lot of startups I think it was like
four or five out of ten of of the
startups out of Silicon Valley had money
from svb
and so now when you're competing against
a startup you might say okay
if you make a hundred thousand dollars a
year I'll value you at a million dollars
I'll give you a hundred thousand dollars
for ten percent of your company
something along that they'll value it at
that but then if you go to bank number
two and say
what will you do
and if bank number two says I'll value
you at eight hundred thousand you're
gonna say well I'm already valued at a
million can you do any better now bank
number two might say okay I value at 1.5
million based off your hundred thousand
dollars of income then you go to bank
number three and say hey can you do
better and they might say I'll value you
based off your hundred thousand dollars
of income at four million dollars now
you're like okay we're talking and now
you you start to shop like this and
valuations just started to Skyrocket and
then you know when you have easy access
to money it fuels I don't want to say it
in a bad way but dumb Investments
because
I can pay if if you can get such easy
access to money
you can run a business where you're
spending a dollar to make 50 cents and
this is a tough concept to understand
but a lot of companies actually do this
especially in the early stages where
they spend a dollar can make 50 cents
because they're just trying to grow
their market share they're trying to
grow the number of users they had like
uber used to lose money on every single
ride why because they wanted to
eliminate the competition and get the
market share and they could get the
cheap capital and they could get the
cheap cap how much of what's happening
right now do you think is a result of
increasing interest rates is that a big
part of this and obviously it's so early
but do you think that there's Scandal
here is it just oh interest rates are a
huge part
because what's been happening now is the
Federal Reserve Bank is trying to bring
down inflation because inflation is
still even today extremely high we're
closer to a peak of inflation than than
our lows which means people's
incomes are essentially shrinking even
though like what we've been seeing
happen is people's incomes are rising
but they're not Rising fast enough to
keep up with inflation so people are
effectively becoming poorer across the
country because the cost of living is
going down
but now interest rates are going up very
quickly
and so when interest rates go up that
means now the investment institutions
the banks they need a bigger rate of
return because most debt I mean besides
your mortgage is not a fixed rate debt
it's a variable interest rate debt are
most of our national debt most of our
corporate debt and most of our little
non-household debt is variable interest
rate debt so when interest rates go up
the cost of servicing that debt goes up
so now you have something like svb
financial and I'm not going to go too
deep into what they do but I'll talk
about just general because I don't know
too much about their particular
financial situation yet but
what most companies do is now they have
this boatloaded debt and the debt rate
readjusts and so now when you're
investing in companies your companies
have to produce a return in order to
continue making the payments on your
debt
well what we've been seeing across the
board the reason why we've been seeing
so many layoffs in the tech sector is
now
interest rates have gone up meaning the
cost of these corporations debts have
gone up and now you need to make more
money to service the cost of those debts
and if you have a high debt payment now
you have to figure out how am I going to
have the money to pay down this debt
well you can either make more money or
cut my expenses
making more money is hard in a time
where inflation's High people don't have
the ability to spend so what's the
alternative I cut my expenses I started
laying off employees
I cut my expenses it's now I have money
to pay down my debt now that works if
you're meta Facebook or Google but what
about the smaller companies that are are
still in the early stages
now your valuation I mean I was you
you've seen so many companies go from
like a billion dollar valuation to
200 million overnight like you're
talking about us at 80 percent drop yeah
so now you have banks that show on their
balance sheet your balance sheet
essentially is your net worth statement
so if a bank says I'm invested in 10
companies each one of these companies is
worth a billion dollars that means I
have 10 billion dollars worth of assets
and so now if you take this 10 billion
dollars worth of assets and go to get
money
you might be able to get let's just say
80 loan to value right eight billion
dollars worth of loans that you can then
go lend out
but now when you see interest rates go
up the valuations of these things go
down that's why we've been seeing tech
stocks crash well now if
10 if your 10 portfolio companies are
worth a billion dollars each and they
fall by 50 percent
now you go from a 10 billion dollar
valuation on your balance sheet to 5
billion your point about meta I think is
really important here so
the strategy that they deployed now it's
it's too early for us to know if there
was anything Sinister going on so
setting that aside for now
um assuming that there wasn't the
strategy could potentially work in an
environment where it's far more stable
either interest rates are dropping or
they're stable but when you get into a
highly volatile either the companies at
a volatile stage and can't absorb the
losses like a meta which just has an
insane amount of Revenue coming in the
door
then it falls apart but if if they had
longer Runway they might not have gotten
caught out but this is Warren Buffett's
old phrase When the tide goes out you
see the swimming exactly and that's
exactly what's going on Rising interest
rates is going to make money more
expensive and that's where you start to
differentiate the dumb money and the
smart money and as you raise interest
rates to cool down inflation it is going
to cause economic pain
and that is going to be the tide going
out
so what can the average person take away
from this how how does the average
person who probably isn't directly
caught up in anything related to svb
um how do they learn the lesson of the
triangle of Doom the rising interest
rates a cooling economy inflation
what what's this moment about for them I
think the most important thing here is
you need to get financially educated and
you can hear me say that a lot but the
reason why is because anytime we go
through this type of shakeup or change
in the economy
until it slaps you in the face everybody
will keep saying oh it's contained
you don't got to worry about it
everything is fine and I can give you
countless examples in 2020 we saw it
happen in 2008 I mean in 2008 first it
was there's no housing bubble oh there's
a housing bubble but it's contained a
housing and then oh crap the whole
financial system is on the verge of you
know collapsing and look this is not a
political thing it doesn't matter which
side of the political coin that you're
on we're all on the same side of we're
trying to become financially wealthy
but the reality is we have our president
saying there's no chance of any economic
slowdown not just this year but in the
coming years our treasury secretary has
been saying the same thing the Federal
Reserve Bank is saying we're going to
see a soft Landing now let's just look
at the numbers to really understand
what's going on because the first issue
is really
what I call this idea of debt
monetization which is probably one of
the most concerning issues and what debt
monetization is it's
how is
our government
funding its operations and how is that
going to impact the regular person that
monetization as a term if I understand
it correctly makes me very angry because
it sounds cool I can monetize my debt
this sounds amazing
am I correct that debt monetization is
printing money yes yes that's one of the
same right it's the a basic way to
explain it so essentially think of it
this way uh our the size of our economy
last year was about 25 billion dollars
and over the last couple of years
especially during the pandemic era we
printed with the Federal Reserve Bank
around five trillion dollars so to put
that a perspective about 20 of our
entire I mean every single person had to
go to work for a year every corporation
had to work for a year in order to
produce 25 trillion dollars worth of
money or wealth the Federal Reserve Bank
was able to print five trillion with a
push of a few buttons essentially
so now when you think about that the
question is why do you and I have to pay
taxes if the government and the FED can
just print this money
well it's because there's a cost to this
money printing what does that cost well
that cost is inflation
and so we're in a situation right now
where
the amount of money that has been
printed is insane and we don't even know
the exact amount of money like we know
the stimulus was something around five
trillion dollars but the Federal Reserve
Bank also did a lot of unlimited
quantitative easing the definition of
money changed uh during 2020 M1 I'm not
going to get into the technicals well so
just really fast what's the difference
between printing money and quantitative
easing so quantitative easing is when
the government does some sort of
stimulus when the government spends
money in a way to stimulate the economy
got it they give you money so that is
stimulus quantitative easing would be uh
kind of where the Federal Reserve Bank
Now is working to
stimulate by printing so they're
essentially go hand in hand because so
wait I'm not understanding the
difference between quantitative easing
and debt monetization are they both
printing money are they the same thing
they're they're both printing money uh
the government has one source of income
taxes and so when they spend more money
than what they bring in this money has
to come from somewhere so in 2022 the
government brought in about five
trillion dollars in taxes they spent
about six and a half trillion so where
does that one and a half trillion come
from
well they can borrow money from you and
I these are treasury loans treasury
bonds when you loan your money to the
government that is a treasury bond the
government has to pay back plus interest
but that's generally not enough money so
then they might go to foreign countries
China Japan and ask them for money doing
the same thing selling them bonds
essentially yeah they will loan other
countries will loan money to the United
States because they want to return and
they like to store their their wealth
and dollars because the dollar is the
world's Reserve currency
the government has to pay them back plus
interest but that has not been enough
which brings us to number three which is
the better Reserve Bank who if option
one and option two are not enough the
Federal Reserve Bank will essentially
print the money and give it to the
government when you say essentially
isn't it literally and obviously it's
not actual printing like money machine
go Burr but it's adding zeros and ones
to a database somewhere yeah and if I
remember this correctly uh what they do
is they actually go and buy things from
people to get the they'll go by
it typically they're going to buy
corporate bonds
but they will they started buying
private company Equity if I'm
understanding correctly but that's how
they get the money into the system so
sort of so the Federal Reserve Bank will
get the money to the government by
buying treasury bonds meaning by loaning
money to the government uh that they
made up just to be clear they made they
have no actual money but it in this new
amount that they're going to go and
purchase or loan this money they they
make it up comes out of thin air
and it goes into the system just make
sure that people track this because the
more I learn about this the more it's
it's dizzying that it works at all and
the more I learn about it there's that
classic saying that as the island of my
knowledge grows so grows the shore of my
ignorance and so it's like the more I
learn about this the less sort of fiery
I get about it the more humble in the
face of like whoa this is an incredibly
complicated system
um I won't even take a stance they're
being Sinister but that is what they're
doing they're they are inventing that
money because the government says it's
okay for you Federal Reserve to do that
anybody else we'd put them in jail but
when you do it it's okay and I I don't
even mean that in a cheeky way but like
just so people understand it
it is counterfeiting by another name
which is probably fine but just so
everybody understands what's happening
they're making this money out of thin
air yeah so there's there's a lot more
money out there which is then causes
inflation because now money enters the
economic system people have the ability
to spend well not much is being produced
now that's the first issue and this has
been going on for a little while it's
been going on since before the pandemic
but it really just Amplified during the
pandemic now the next issue is the
amount of debt out there so the
government national debt is
breaking records like 32 32 or so
trillion dollars uh we have the highest
amount of household debt ever and the
highest amount of corporate debt ever so
we have more debt than ever before
and now we have high inflation high
amounts of debt now what's the next
thing that's happening the Federal
Reserve Bank is working to raise
interest rates well what does Raising
interest rates do they are trying to
reduce demand this is what they're
saying they want to reduce people's
buying ability because when you have the
ability to buy whatever home you want
whatever car you want whatever vacation
you want people will spend that then
causes the price of things to rise
because there's a limited supply of
these things
so they want to reduce demand how do
they reduce demand they reduce
affordability all right really fast I
think we have to make it clear for
people why that's problematic because it
doesn't seem like it should be
so here is how the here's how economists
are looking at it the feds being a part
of that system hey everybody you're
acting like it's the 1920s rip roaring
spending money everything's great and
because of that the economy is hot as
they say people are spending a lot of
money they're going out they're buying
things companies are investing they're
hiring new employees and it's like a
growth mode yeah now the problem is it
when the economy is on fire like that
and people are buying a lot of stuff
there's a lot of demand for those
products which causes the price to go up
that is inflation as the prices rise for
the same thing right and so what they
know is that can run away with you and
if wages aren't going up so people are
making more money but the cost of things
is going up the way that people fund
that is through debt but debt has a
Breaking Point debt is fine until it's
not because you have to service the debt
and you know when most of us think of
debt we think of something like a
30-year fixed rate mortgage but most
debts are not a fixed rate debt
corporate debts is not generally fixed
rate it generally has some sort of
variable rate to it meaning either after
six months 12 months or a few years it
is going to readjust our national debt
is not a 30-year mortgage some of it is
10 years some of it is five years some
of it is one year some of it is six
months our household debt we have you
know things like credit card debt which
are variable interest rates so now
interest rates are shooting up and
they're going to continue to go higher
uh the Federal Reserve Bank is saying
the interest rates are going to have to
go higher than what they originally
expected no big surprise here we've been
talking about this because we need to
cool off the economy you guys are buying
too much companies you're hiring too
many people like I heard that they the
FED in raising rates one of the things
that they're looking at is they want to
make sure that um that there's like an
optimal jobless rate that you want is
that true so
essentially we have way everybody has a
job according to the Federal Reserve
Bank
and because there are so many people who
have a job we have a very low
unemployment rate unemployment is around
three and a half percent which is
historically extremely low and this is
where now the Federal Reserve Bank is
saying one of the consequences of
cooling the economy and bringing
inflation down is increasing
unemployment is their goal to
necessarily increase unemployment no
it's a byproduct of bringing inflation
down according to the Federal Reserve
Bank their goal is to bring unemployment
from three and a half percent is 3.6 as
of today to 4.6 percent by the end of
2023. this is what they've stated in
their annual report
that would mean that we would have about
2 million Americans lose their jobs
according to those numbers
now
this is where also understanding what is
the impact of that and is that going to
be enough
because what we've seen happen is it
going to be enough to slow inflation is
that
so the Federal Reserve Bank has to raise
interest rates to bring inflation down
and the consequence of raising interest
rates is a slowing economy AKA less
people have jobs so is
their current projection of raising
interest rates which is bringing
interest rates to about five percent is
that going to be enough with about 2
million lost jobs is that going to be
enough to fix the inflation problem no
it's not going to be
the Federal Reserve Bank has been wrong
many many many times and if we just look
at like the last few years
first they said that this stimulus
quantitative easing is not going to
cause inflation
then they said oh this inflation will be
gone by the end of the year this is like
2021 2022 this it'll be gone by the end
of 2022. then they said the inflation is
transitory then they say the inflation
is not transitory then they said the
inflation will be gone like completely
in the next couple of years now they're
saying that the inflation fight is going
to be much more painful and much more
difficult than originally expected so
okay now they're saying that if we can
bring interest rates to around five
percent
then the inflation problem will be gone
five percent is their terminal rate is
what they're calling it meaning how high
we expect interest rates to go and when
I say interest rates I don't mean your
mortgage rate I mean the interest rate
set by the Federal Reserve Bank this is
the wholesale rate that Banks get
tomorrow money at so Banks borrow money
at the wholesale rate this is the
federal funds rate and then they Jack it
up and then give you the retail price
like your mortgage rate or something
like that so the Federal Reserve Bank as
of today are saying that five percent is
the terminal rate as of today it's at
around four and a half percent
last year they said the terminal rate
was going to be around 4.6 percent uh
before that they said it would be even
lower than that so they keep raising how
high they expect interest rates to go
they're saying that a five percent
interest rate
would result in an unemployment rate of
an extra 2 million people losing their
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description alright my friend back to
today's episode
is there going to be enough well based
off of the past Trends and based off of
where inflation has gone
it doesn't look like it's enough because
what
the Federal Reserve Bank is realizing
that bringing inflation down to their
two percent goal is going to be more
difficult than they thought and if it's
more difficult than they thought that
means it's going to cause more pain to
the economy than they thought
so now what does that mean we're living
in this world thinking everything is
just fine
everyone keeps saying that there's going
to be a soft Landing everyone keeps
saying that we might not even see a
recession everyone keeps saying that
there's nothing to worry about yet if
you look at the numbers we have
still extremely high inflation the
highest debt levels ever we have
interest rates that are rising which
means your corporate debt costs are
rising even if we don't increase your
debt levels the cost payment is rising
because interest rates are rising we
have our national debt cost which is
rising even if the government didn't
spend more money their payments would
still be rising household debt costs are
rising why because our credit card debt
is at the highest level ever
now it looks like interest rates are
going to have to go up even higher than
four
then if you dig a little bit deeper you
start to see where the real issues start
to arise because now if you look at for
example if we just look at the
government
in 2022
are interest payments on the debt
outpaced our total veterans spending
Veterans Affairs spending and
transportation spending combined that's
2022.
in 2021 we spent more than 100 billion
dollars Less in interest payments than
in 2022 and the prediction is that by
around 2025 our interest payment
spending just on the interest on the
debt is going to exceed our entire
military budget here in the United
States
and now you have to ask okay is that a
problem
well if the government can continue
generating enough tax dollars then maybe
it's not a problem how does the
government generate tax dollars you have
to go to work to get paid your company
has to make a profit people have to make
money in their Investments
let's start tying this together now if
the economy is slowing people are losing
their jobs corporations are making
smaller profits
less income less income means less
taxable income less taxable income means
less tax dollars
so if the government is generating less
tax dollars because the economy is
slowing people are losing their jobs
how are they going to afford a
ballooning interest payment like it's
our interest payments are growing so
quickly not because now the government
is spending like they were in 2020 and
2021 but because the cost of servicing
the debt is growing really faster than
ever and on top of that the Federal
Reserve Bankers say that they're going
to have to increase interest rates
more aggressively and potentially even
longer than what they originally
expected
so now you look at that from the
government side it's like oh there's
some issues on the government side but
they should be able to figure it out
where the world's observe currency okay
let's go to the corporate side
corporations are going to face one of
their biggest tests
because of this ballooning debt bubble
and the reason why it's is because
in 2020 2021 and even in 2022
corporations were making their biggest
profits ever the economy was booming
partially because of all the money that
was now just entered our economy there's
a lot of fresh money in the economy
corporations are making money hand over
fist meaning they're making big profits
meaning they would have big piles of
cash
yet you're seeing layoffs accelerate why
are corporations having to do layoffs
when they're making the biggest profits
ever just you know a year or two ago
well it's what does a corporation do
with their cash there's three things
that a company can do with their cash
they can save it for an emergency they
can reinvest it back into the company
hire more employees open more plans open
more stores or they can give this money
away to their owners
and what's interesting is our economic
system makes it so that saving money as
a corporation is the least attractive
thing to do
now you might say what do you mean
if you made let's just say a hundred
million dollars of profit and you kept
it because you said I want to keep this
100 million dollars for a rainy day as a
corporation
but the first thing you have to do is
pay taxes on that money
and that means that you're going to have
to send a check of maybe 20 million
dollars a little more than 20 million
dollars to the government just in taxes
now you if you're running a company
that's a lot of money I mean 20 million
dollars they can hire more employees
they can open your plant you can invest
in more whatever like there's a lot of
things you can do with 20 million
dollars so you're gonna say do I really
want to do that with my money because as
a CEO of a company you want to use your
money in the most productive way
possible and to you giving the money to
the IRS is not very productive for the
company
so you might say well you know what
we're not going to give this money to
taxes we're going to invest it back into
the company so now if you take all 100
million dollars and you hire more
employees you invested in advertising
you open a new store and all that money
is gone
you have zero dollars of taxable income
three dollars a profit but you're making
the company more valuable
the third not presumably creating
something that the world wants exactly
that would have to be a product for the
business to continue uh but then the
third option is
you can give the money away to
shareholders and what what has been
happening is shareholders when you say
give it away are you talking dividends
or stock BuyBacks or both yes both of
them and so this you know I think this
is where it's important to understand
corporate governance because most people
assume that if you're the CEO of a
company you're the head you're the head
Hot Shot like you run the company we
used to have a boss your boss is now the
owners of the company the shareholders
and so if you're a publicly traded
company your shareholders are anybody
who owns the stock if you own one share
of Amazon you're one of the owners of
Amazon
and what happened was in between 2020
and 2022 the end of 2022 the shareholder
said
wow I made a big profit we've been
invested in this company for a long time
it's time for us to see our returns give
us some of that money you can give us
that money in the form of a stock
buyback which means the corporation is
literally buying back their own stock to
make the stock price rise or give us
that money in the form of a dividend
which is literally a cash payment a
distribution
and so for the shareholders they put a
lot of pressure on the CEOs saying we
want some of this uh we want this money
given to us
and so what did we see happen well we
saw dividends grow very quickly and we
also saw a record amount of stock
BuyBacks stock BuyBacks broke a new
record in 2021 they broke a new record
again in 2022 and currently they're on
Pace to break in new record in 2023. so
now let's go back to the same example
because I really want to highlight this
one point because if you made a hundred
million dollars in profit and then you
announced a 100 million dollar stock
buyback now you're using all their money
to buy back stock you have to pay taxes
on this money first but then you can use
all whatever is left to buy back the
stock which enriches the shareholders
and there's a time and place for this
but if you think that if a corporation
is just going to spend a hundred million
dollars in stock BuyBacks you're
thinking very small because what can a
corporation do then go to the bank and
say hey Bank look at our balance sheet
look at how many assets we own look at
how much our stock is worth and look at
how much money we made
we deserve a loan give us a half a
billion dollar loan so now this
Corporation has 100 million dollars of
cash of profit they got 500 million
dollars from the bank at some of the
lowest interest rates we've ever seen in
history in 2021 and even in the early
part of 2022 the lowest interest rates
ever
and now you have a 600 million dollar
cash pile that you can now use for
something like a stock buyback what does
it do stock price is soar investors see
their portfolios grow the corporation
sees their debt balance balloon
now if a corporation has an increase in
debt because they're investing their
money into more research into more
employees into something else it's a
income producing asset right because
they're investing their money into
something that will hopefully produce a
much higher return than whatever the
debt cost is if a debt is costing you
four percent a year but you can invest
it in your company get 20 it's
profitable
but if a corporation is going into debt
to fund a stock buyback that means
they're not borrowing money to
essentially fund a liability because
they're not getting a return on their
stock buyback right if I go out and I
borrow money to buy something for myself
I make myself richer
that stock buyback doesn't produce a
return for the company it'd be like you
going to Gucci and financing a new Gucci
belt you don't get a return on it as
opposed to you going out and buying
maybe a rental property which is
something that produces a return so what
we've been seeing happen is Corporate
debt balances have have been ballooning
to the highest levels ever like
corporate debt today is at the highest
level really ever
partially due to levered corporate
BuyBacks meaning corporations doing
stock BuyBacks with the help of debt why
were they doing that because debt levels
were at the lowest rates we have ever
seen interest rates interest rates now
today it's changing interest rates are
growing at some of the fastest rates
we've ever seen and this corporate debt
that they have is not a 30-year fixed
rate mortgage it's a variable meaning
six months 12 months five years it is
going to readjust
and now when it starts to readjust
they're going to have higher costs where
they have higher costs they're gonna
have to pay this money back again no big
deal assuming you're making enough money
how do corporations make enough money
you need a growing economy you need
people to have the ability to spend
but people's ability to spend has been
going down why because of inflation
people can't spend as much because I got
to spend more money on my gas and my
eggs than I so I don't have money to go
out and buy as much other stuff so
people spending ability goes down and in
addition to that what we've been seeing
happen well okay I'm actually let me
clarify this for a second because
one thing that I I really really really
really want people to understand is that
there's a difference between data and
Analysis and today most people's
analysis is everything is fine
why because of the way they interpret
the data so let me explain what that
means because the data today says that
the economy is growing and it's and
people are spending
our economy runs on spending the more
you spend at Chipotle the more money
Chipotle makes if you go to Chipotle and
you buy the extra guac they make more
money right
and so what we're seeing right now is
that consumers are spending
they think things are still good
all's well
so I get 21 and I get 22 in terms of the
consumer thinking things are well in
terms of the corporations thinking
BuyBacks are the right play but I'm
super confused why in 23 we're on Pace
to set another record for BuyBacks do
you think that's just going to
absolutely die in the second half of the
year or it's hard to time it I mean
BuyBacks are still happening but what do
they what do they understand that either
I'm missing you're missing we're both
missing like it seems self-evident that
right now is the time to save and be
cautious and you've got Warren Buffett
and Charlie Munger saying I see red
flags in the economy bro and so they're
sitting on 90 billion dollars in cash so
how on Earth are we on Pace why are
consumers still spending like crazy and
why are we on Pace to
um
again set another record for BuyBacks so
on the consumer side
consumers are spending and this is what
the data shows which is why everybody's
saying everything is it's great why are
they spending what's the psychology the
first issue is it's you have no choice
inflation has made everything so much
more expensive so people are spending
more interesting so they're looking at
spending and it's not that they're
buying more cars and Gucci belts is that
they're paying more for eggs so that's
the first part and there's there's a
holistic view the first part is they're
spending more money for their eggs and
that is made
like if you look at the the recent
spending reports it shows the consumers
are spending but they're spending
partially because of inflation which
means people aren't just getting more
things they're just spending more time
out there spending like drunken Sailors
they to some extent so okay this is very
interesting so as you tease out
the data raw numbers and the analysis
the story you tell about the data that
you see yeah
people are confusing oh everybody's
spending more money Good Times yay with
no no just to get my Basics and and
that's your analysis are there who else
is saying that so let me explain me just
hone in on that for one point because
now if you look at the spending people
are spending right but how are they
affording it which is the interesting
part because so I ran these numbers
um on a YouTube video that I did
recently and what it's the data shows us
that inflation between the pandemic 2020
to now
there's reported inflation number over
those last number of years is about 15
whoa God I've known that but that just I
don't like hearing that well now let's
compare that to wages because according
to the Bureau of Labor Statistics and I
calculated this out in 2020 inflation
was around two and a half percent I
think it was 2.6 percent 2021 it was
about 5.1 2022 was about five percent
which means if you made a hundred
dollars in 2020 you made about
13.20 today
inflation is 15
wage growth is about 13 on average
according to the numbers now most of us
know that the reported inflation isn't
the real inflation wait but sorry what
time frame do we go from making 100 to
making 13 100 to 113. there we go
between 20. if I said 13 I apologize I
heard 13 so I was like wait what no no
100 to 113. so wages have gone up by
around 13.2 percent got it inflation
about 15 and some change which means
inflation has been growing faster than
wages and so now people are spending how
are they spending well what we've been
seeing is credit card debt is not only
at its record levels but growing at
record speeds so people are going to
credit card debt uh bank rate did a
study that they put out earlier in 2023
which said that about 4 out of 10
Americans have been digging into their
emergency funds uh to cover lifestyle
expenses and in addition to that savings
rates in America this according to the
federal reserve banks are near record
lows right now all time all time we're
very close to the all-time the all-time
was like somewhere in the last six
months so our savings rates right now is
very low and so people are spending way
more so what we're seeing is yes people
are spending how are they spending
they're going into debt and they're
digging into their savings at a time
where variable interest is about to slap
them about the head neck and chest
and servicing the debt is going to get
far more brutal but they have to do it
because it isn't lifestyle at the club
it's lifestyle eggs it's and it's a mix
of both but the thing is there's a
breaking point so do you think there's
still Euphoria like are people I get the
eggs problem I know you're just gonna
ballpark this or maybe you have the data
but I'm guessing you're just going to
take a stab but how much of the increase
in spending is eggs and how much is I
don't want the party to stop well
okay
there are over 50 I think it's about 6
out of 10 Millennials who are making
over six figures a year are living
paycheck to paycheck yep and it's like a
tail is all this time but if we assume
that if you're making six figures that
you should be able to invest some money
and save some money
and 6 out of 10 Millennials who are
making over a hundred thousand dollars a
year are living paycheck to paycheck
well that gives us an idea that well you
should be able to at least save some and
invest some money and live so some of
this is still I don't want the party to
stop which is at least as long as I've
been alive that's been the case
everybody lives paycheck to paycheck
almost no matter how much money you make
which is very terrifying
just like one thing to do this is not
the year to finance a brand new truck
let's just make that clear because now
we're seeing all these red flags we have
people spending and then you also have
people
if you're not aware of what's happening
if you're let's just say a regular
person I go to work I get paid and I
like to spend money which is you know a
lot of people because we don't have a
lot of financial education and you keep
hearing everybody saying there's nothing
to worry about everything is fine you're
still getting your paycheck
what's the concern for you well we're
talking about are things that I mean how
many people understand what our national
debt is how many people understand what
debt monetization is how many people
really understand what inflation really
is I didn't I did a video a number of
years ago this is before the pandemic
I walked the streets of different cities
around the country I went to San
Francisco I went to Chicago I went to
Washington DC I went to Manhattan New
York and I walked I went to LA also and
I walked around and I asked people the
question this is like 2018 I think what
is inflation
and I can't give an exact number but
let's say eight out of 10 people if not
nine out of ten people had no idea what
inflation was and the like the number
one comment that I would get on these
videos is how long did it take you to
find these people
like you don't get it this is like half
a day I went there shot the videos and I
left like I didn't go out and try to
find people it was like this is regular
people that I was asking these questions
to now obviously inflation is becoming a
little bit more of like front of mind
because we see it everywhere but most
people still don't understand the
consequences when was the last time we
saw inflation this high
the late 1970s what had to happen in
order to bring inflation down interest
rates had to get jacked up mortgage
rates in the early 1980s were over 18
percent it took a lot of work to bring
inflation down
are we gonna have to see that same thing
happen now
well we've taken our mortgage rates from
three or under three percent to now over
seven percent and inflation is still
closer to its peak than it is to our
goal
so what does that mean I mean how much
more are we going to have to do and how
much more are we willing to endure we
we're seeing the issues with
corporations they have the debt problems
our national debt is having some issues
households are starting to have issues
and yet we're sitting here like nothing
is wrong and this is where like Michael
was to say look
let's run two scenarios
nothing bad happens
and something bad happens what's the
best thing for you to do if you start
preparing right now we start building a
little bit of a savings cushion you put
some money aside to invest you make some
Investments and you start preparing and
you start getting educated
versus you don't well if you prepare
and nothing bad happens
you do nothing wrong like like
everything is fine you have a big bank
account now you can go to Disney World
if you want
if you prepare it and something bad
happens you have a once in a lifetime
opportunity to build a immense amount of
wealth just because you're prepared
because when
bad things happen
good assets go on sale and that creates
opportunity because now you can come in
and buy some of these distressed assets
which are like when I say asset I mean
an investment it could be a stock it
could be real estate it could be a
business
when when people are are running out of
money people become desperate and then
they will need to sell or they'll be
forced to sell because the bank is
forcing you to sell and this can create
an opportunity now for somebody who's
prepared to go out and buy some of these
Investments at a discounted price when
the 2020 pandemic hit
people were able to buy stocks for 50
off for a small period of time now most
people running away getting a scared
getting scared they had no idea what was
going on but some people were buying
and it created an opportunity I don't
think like even myself I didn't expect
the stock market to turn around that
quickly I talked about on my channel how
I was buying in phases on the way down
because I didn't know what was going to
happen but I knew that this was creating
great opportunities
I never expected the market to turn
around as quickly as it did I never
expected the Federal Reserve Bank to do
the amount of quantitative easing that
they did I never expected the amount of
stimulus that we saw happen that was a
surprise to me but that completely
turned around the market and that made
you know the people who invested they
saw huge returns very quickly which I
did that's what everybody thinks is
going to happen again
so in preparing for this episode I
started looking what are most people
saying and most people are like oh has
the crash finally been canceled I think
you actually even have a video along
that vein there's a lot of people
talking about oh the crash that we
thought was coming it's not going to
come we are going to get our soft
Landing uh we have the increasing rates
which has already started to really
bring down inflation the government will
do more quantitative easing AKA printing
money we're going to be fine
so here's the thing like yeah that has
happened in 2020 it happened in 2008 it
happened in 2001. the difference between
now and then
is we have an inflation problem now
which we didn't have before which means
let's just let's go with that right
where let's say unemployment shoots up
we start to see a recession and now the
Federalists start to see a recession so
you don't think we're in a recession now
well I think the average person is in a
recession I'm saying what the world is
saying right we haven't been declared in
a recession so let's just go with that
because they changed the definition
though they changed the definition of a
recession and you know that's a whole
different topic which we won't derail
because you know at the end of the day
if they're declaring a recession or they
don't declare your recession if you're
struggling financially it doesn't matter
right the average American is feeling
the effects of a recession right now
plain and simple now whether they're
declared or not it's a matter of
semantics and you got to take care of
yourself financially so if our economy
gets worse and now the Federal Reserve
Bank pivots
well then what that means they're going
to cut interest rates if interest if
more if your mortgage rate
dropped to two and a half percent
tomorrow what's going to happen
people are going to start buying homes
again
and people start buying homes again
who've been waiting for the mortgage
rate drop what's going to happen home
prices will shoot back up
and spending will shoot back up car
sales will shoot back up people would
spend more money or is that going to
result in higher prices for things and
so this is the problem where
we don't have that same ability to cut
interest rates without consequence like
we did before and you talk about this
idea of a soft Landing which you know
I want to highlight that this isn't the
first time we've ever heard of
this concept of a soft Landing
it's been talked about many times and
the whole idea of a soft Landing like
technically is you raise interest rates
without inducing a bad recession without
it seeing a huge increase in
unemployment rates in 2000 before the
2008 crash let's start with 2005. the
den chairman who was Ben Bernanke said
not only is there no housing market
bubble that's going to burst there is no
housing market bubble so that there's
like his famous three years from
catastrophe three years of catastrophe
2007 now we start to see a little bit
more issues we start to see the housing
market go down a little bit and that's
where Ben Bernanke brought up the idea
of a soft Landing he says we're going to
raise interest rates to ease the issues
in the housing market but we believe
that we can do a soft Landing
without causing pain to the broader
economy one year later
the entire meltdown happened
and so now what is a soft Landing you
raise interest rates without inducing a
major pain to the economy have we ever
seen a soft Landing before yes we have
if we go back to 1994 this is what all
the economists are like
talking about they're saying oh we can
just do a repeat of 1994 because in 1994
the Federal Reserve Bank raised interest
rates
and we didn't see a major increase in
unemployment
and that was the only real time between
19 like the 1940s and now so like modern
economy where we were able to increase
interest rates without causing a big
increase in unemployment
are we the same economy that we had in
the early 1900s no we have so much more
national debt we have so much more
corporate debt we have so much more
household debt we're raising interest
rates very aggressively and on top of
all of that we have extremely high
inflation and now on top of that we're
also jacking up interest rates very
aggressively and they keep saying that
they're going to have to raise it like
every time we hear oh I think we're
getting close to the interest rate and
we're gonna have to raise interest rates
even more aggressively and so now it's
look
understand that
just because somebody says something
doesn't mean it's necessarily true right
it's the data versus analysis the data
shows if you take a snapshot of today's
economy if you take a still picture it
shows you consumers are spending
and companies are making money now if we
turn this into like a live photo where
you can kind of see moving image
now you see yeah consumers are spending
how are they spending well they're going
into credit card debt they're going into
their savings they're spending more of
their income
so now you start to see oh there's some
red flags there and oh debt levels are
rising and corporate debt levels are
rising and national debt levels are
rising and household debt levels are
rising
there's got to be a cost for this and
bringing inflation down like okay
inflation by itself is slowing down the
economy
fight on inflation is bringing down the
economy
but inflation hasn't gone away and the
fight on inflation has a lot to go so
it's like a double whammy which are both
hurting the economy and now everyone's
saying don't worry we're gonna have a
soft Landing well how is that possible
if the inflation is hurting the economy
the fight on inflation is hurting the
economy and neither of these are close
to being solved
okay so I think there there is a debate
to be had and it goes something like
this so I was just talking to Rao Paul
isn't uh isn't super concerned like when
you talk to him it feels like soft
Landing territory he said he thinks to
use his words that the recession will be
sharp but short and so maybe different
than a soft Landing but he feels like
the government is a hundred percent
going to print its way out of this it's
going to stimulate its way out of this
either or both so it's either going to
hand stimmy checks to people
um or get money into the economy either
way it's going to do it through printing
certainly here in the us because we are
the world's Reserve currency we can
basically do whatever the [ __ ] we want
until we can't and
um we can get into bricks in a second
but
so
the two competing narratives as I see it
you've got raoul's idea of short and
sharp then you have and I'm gonna have
to look up her name unfortunately it's a
it's a slightly complicated name but the
new co-cio of Bridgewater so Bridgewater
Ray dalio's company largest hedge fund
in the world right uh Karen canoyle
Tambor I'm sure I just brutled that uh
brutalize that but you get the idea so
she is saying that she thinks that we
could be in for deeper and longer
recessions than what we're accustomed to
so if we've got sharp and short
government is gonna and I think it was
the FED that said this like we it's okay
if we end up breaking the bone being
that we raise interest rates too high
that breaks the economy because we know
how to repair a broken bone what we
don't know how to deal with is Runaway
inflation so we're going to go in we're
going to hammer that down we're going to
keep cranking up the in uh the interest
rate until inflation comes down uh now
the bad news is it sounds like we don't
think we're going to be back to two
percent until 2025 which is very little
comfort in 2023 early 2023 and we're
recording this but they feel like okay
we we've got that in hand and so that
speaks to what Raul is saying which is
okay we're going to break your leg it
isn't going to be fun but we know how to
fix it we're going to stimulate we're
going to print some more money and we're
going to make sure that you don't end up
in the ICU yeah whereas the other
narrative sounds like you and Karen at
Bridgewater are in a more similar vein
of like we're out of tricks and if you
continue to raise interest rates you are
going to break the leg and you you can't
keep stimulating because at some point
not only so let me finish that thought
uh you're gonna break the leg but you're
going to have a hard time getting it to
heal the reason you're going to have a
hard time getting it to heal is
complicated it's a triangle of Doom
which we've already talked a lot about
here
the next part which is a signal to me
and again I'm playing the role of the
lay person here
is a signal to me that you'll only be
the reserve currency until you're not
and so you've got the it's bricks right
the brics Nations yeah Brazil
something China South Africa Russia
Brazil Russia Russia India India China
South Africa there we go okay thank you
so they're going uh yeah U.S you can't
just keep printing your way out of this
and uh devaluing the dollar we're not
going to stand around for that and so
they're now making moves to create a new
Reserve currency that's backed by gold
right and we see
um uh central banks the world over now
scrambling to buy gold in fact I have
established I may have gotten from you
oh God am I going to be able to find
this but yes so in the third quarter of
2022 central banks bought more than 400
tons of gold the last time they bought
this much gold was back in the 70s when
Nixon took us off of the gold standards
yes and this is now
what you're saying look real Paul's a
very smart guy and and
you know the government
no okay just because this is a lot to
unpack here
eventually you know the raising interest
rates is going to cause pain even though
most people say it's not going to cause
pain because you're raising the interest
rate on the debt that I have you gave a
really good example in one of your
videos you said let's say your cousin
buys a house and based on
um the cost of the house it costs them
fifteen hundred dollars a month to
service that debt and own the house to
make his payments on the house you then
buy the same house which has gone up a
little bit in price yeah and your
interest rate though is higher and so
now for the same house he's paying 1500
you're paying 2500 by way of example
right and that this is a very common
thing happening because home prices
haven't come down enough to uh kind of
make up for the higher interest rates
but that's a separate topic from this
which is now
the government no government wants to
see economic pain while they are in
power because it looks bad on you so why
would I want to have to deal with the
pain and actually fix the problem when I
can stimulate and try to push it off
Kick the Can down the road essentially
that's okay exactly like what's going to
happen and
that is what has been done and it is
what everyone will want to do
the problem is
right now if we keep doing that it's
going to cause even more problems
because right now you're right our
dollar is being tested uh we can like we
haven't most of us myself included
haven't lived through a period of
sustainably rising interest rates and we
haven't seen what that does to our
economy because from like the 1970s
until now it's been a
drop in interest rates uh yeah we have
ups and downs but from this from like
the 80s 70s till now it's just been
steadily downwards and so we haven't
seen a period of growing interest rates
growing interest rates makes borrowing
more expensive it slows down the economy
and we haven't experienced that and for
the last 15 or so years we've only seen
low interest rates next is zero interest
rates and so for the first time we're
actually experiencing higher interest
rates
that is something new for most of us
myself included so now higher interest
rates are going to have an impact and
now if the government just starts
stimulating they try to like kind of
bring us out of this that is going to
hurt the dollar even more and then that
poses the second concern like you
brought up is we have major countries
around the world Russia India China that
are coming together and saying we don't
like being controlled by the United
States we don't like being controlled
and subservient to the dollar we don't
like that the dollar isn't backed by
anything so in 1971
the United States was
I'm going to say this in a kind of like
let's say the politically correct way in
1971 or before 1971 our government was
on the verge of default
we had a lot of debts our dollar was
then backed by physical gold so we
didn't have the same ability to print
money we needed more gold to print more
money we had limited amount of wealth
and so now our government had a lot of
debts that it owned especially to other
countries around the world
and we were struggling to make these
payments and we were on the verge of
default and that was when President
Richard Nixon in 1971 severed the tie
but the dollar and gold temporarily he
said no he said I've put the speech many
times on my YouTube channel where you
said I am temporarily going to sever the
link between the dollar and physical
gold what does that mean that means that
now the government and the Federal
Reserve Bank have the ability to print
money on command
now we have all these debts to pay we
have to pay you know hundreds of
billions of dollars in debts fine just
print that money here's your money and
now you're a little confused you want in
Gold but you have the money so it's like
I got the money okay and everything was
just fine obviously inflation really
kicked up after that but
now what we're seeing happen is okay
inflation is becoming a bigger concern
countries around the world that own
dollars are saying oh this inflation is
a problem this money is just pieces of
paper what is the real value of this
money is backed by the economy it's
backed by the military
and we don't like but we don't like
being bullied by the United States what
if we work together to create our own
currency and we back it by a metal like
gold now this is still in the early
stages but you know the brics Nations
that we talked about have been working
to build their own Reserve currency
potentially backed by physical gold and
we have seen more central banks like you
said
working to purchase and hoard gold
then the last five decades the last time
we saw them go after this much gold was
when the gold set was severed from the
dollar temporarily and we think that
they're doing that because at the brics
Nations pull this off then to increase
their own wealth they will have to
acquire more gold exactly and then it's
kind of like a economic Warfare type of
situation where it's like
if the United States is getting weaker
economically and they're getting weaker
internally because people inside the
country are you know fighting each other
that creates weakness
and people around the world want to
capitalize that weakness now of course
we're in a situation right where most of
us have grown up never having to worry
about inflation most people never have
to worry about like the long-term
concern of our economy or anything like
that but what other countries are saying
is
we don't want to continue being bullied
we want
to have our own independence we want
something a little bit different and so
that's concerning because well
if more and more countries don't rely on
the dollar they're going to be less
willing to loan money to the United
States and if they're less willing to
loan US money okay well that could
create more of an inflationary issue
here what is up my friend Tom bilyu here
and I have a big question to ask you how
would you rate your level of personal
discipline on a scale of one to ten if
your answer is anything less than a 10.
I've got something cool for you and let
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boring which is what kills most people
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here is the thing achieving huge goals
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requires you to do those challenging
stressful things and to stick with them
even when it gets boring and it will get
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you're never going to achieve anything
meaningful unless you develop discipline
all right I've just released a class
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legendary
but then secondary is many of these
countries own our dollars
and so if they decided to play the game
and dump our dollars you increase the
supply of our dollars
which would increase essentially
inflation it would increase the amount
of the supply of dollars in our economic
system
and so those are the concerns
how where will that play out I have no
idea I'm just telling you what's
happening right now right I mean there's
a lot of conspiracy theories we're kind
of saying this is going to happen and
look you know you can kind of you can
kind of play out where this could go but
this is where it becomes so important
for us to become economically strong
and really understand when you say us do
you mean us as a nation us as a nation
well our nation is made up of
individuals and so you know the
government doesn't have its own stream
of income well so that's interesting I
would say there's a pretty big
difference between appealing to the
individual and appealing to the
government because the individual can be
disciplined and the government can still
spend like drunken Sailors and now
you're still in trouble but the
individual has their ability to vote and
to pick who's in government right and so
if the individual is educated
financially
then you can make a more educated
decision of who's running the country as
well because the country is run up by do
you have faith in what you just said
look man
you have to I feel especially look my
family is from a state in India called
Punjab and we have
obviously issues here
but economically there's nowhere else in
the world you'd want to be
I agree with that but I also am very
sensitive to the reality of your the
leading Empire until you cease to be the
leading Empire because you deteriorate
from the inside which feels like what's
happening right now so there's that
famous John Lennon quote about in the
80s
um you know if I were living in Roman
times I would live in Rome where else
and now I live in New York because
America is the new Roman Empire and New
York is Rome itself uh
I feel like there's a similar quote to
be had which is that there there's just
a psychology that ends up happening when
Empires end up declining and some of
those same things are happening right
now so the fact that we're so over
leveraging from again I'm I am the lay
person I'm educated enough to know that
I'm on the right track
um that directionally what I'm about to
say I think is very accurate that we are
over leveraging our position as the
world's Reserve currency that the fact
that we have created
so many new dollars I forget what the
percentage but it's absolutely
ridiculous in the last like whatever
five or six years we've created
something like 40 of all the dollars
that have ever existed in the history of
this country so it's like that's so
crazy and so when I think about
appealing to the average person hey
please be thoughtful about who you vote
for we want to be careful as a society
the problem is when everybody has grown
up being the reserve currency for as
long as we have and Ray dalio has
a map of the changing world order it
goes in six stages every Empire ends up
collapsing there's only six stages stage
six is Absolute Total collapse he puts
us somewhere around stage five and a
half so it's like we're just headed down
this path and when he looks at what are
the indicators of that it's the fighting
inside of a country he talks endlessly
about how we treat each other I I saw
him backstage uh literally like weeks
ago and you know I was like Hey because
we were in Dubai and I'm just like whoa
Dubai is like popping off I'm like
you're a guy you travel around a lot
like how do you think about where to go
you know where is going to be the
Economic Opportunity and he said Tom
it's all about how people in the country
treat each other yeah and I was like
that's so interesting now you mentioned
earlier that we're colliding internally
and that's part of the weakness
I think it's a multi-pronged thing part
of the weakness you and Ray are saying
the right thing we're just we're not
treating each other well and we have to
be very thoughtful but the other part is
what you're bringing up now that you
have faith in that maybe I have a little
bit less faith in which is I don't think
I'll get there let me bring this all
together I don't think that we're going
to make
the wise decisions that we need to make
unless there's a enough suffering
because what ends up happening is when
you look at the the way that we're going
it is more and more uh richer evil
companies making money like their evil
companies need to pay their fair share
all this stuff not understanding that
the
the miracle is not the redistribution of
wealth the miracle is companies creating
something that people want badly enough
that they pay money this is how we've
pulled people out of poverty production
by creating something that's amazing and
so what I'm worried about is there there
has become an attitude uh because things
have been so well for so long you said
for 50 years we've been in a declining
interest rate environment money is easy
to get you can finance things on debt
and that's fine because the the rate is
going to go down like what could be the
problem now in the moment where the
rate's going to start going up the
mentality of people has been formed over
50 years if it's all good it's raining
money everything is well and so now
people go into oh the miracle isn't like
all this wealth we've been able to
create and isn't this amazing and look
at how productive we've been it's like
oh people that are succeeding like this
is evil and what are they doing and so
now when they vote they're voting from
that perspective and so I they they will
change their tune but it will require so
much pain and suffering for people to
realize oh [ __ ] like we've been barking
up the wrong tree
and so I to to say it in a single
sentence I don't think people are going
to vote in the uh austere way that you
want them to vote which would be
fiscally responsible of course until
they are in agony well I think you're
100 right on that and I I think
many people are emotional and one we
don't understand money now what I'm
saying is for the first time people have
access to real Financial education
with ease YouTube podcasts newsletters
we have access to this information and
you're right people are generally
emotional and the third issue is we are
becoming a two-class nation which is the
probably the biggest issue causing the
Divide
and what I mean by that is you have the
rich and the poor but in order to have a
healthy Society you need a rich the poor
and the middle class as a middle class
it's completely being decimated by the
system and you know going back there's a
saying it's like a
tough times create tough men which
create Good Times which creates soft men
which create bad times something like
that I've probably butchered it but yeah
pretty close and this is kind of what
we're seeing yeah you know we became
this country because of tough times we
fought for it and then things became
great and then we grew up in the times
where money is easy everybody's Rich you
can Finance whatever you want buy as
much Gucci Gucci as you want we're a
consumer Nation we become fat as a
society We Want It All We don't want to
have to work for it we become lazy and
things are seems great like I can have
anything I want
that's gonna
have a Breaking Point
eventually that party will stop
and when that party stops you know it's
what will we do hey guess what we still
have a ability to learn here we're still
the most creative place and hopefully we
stay this way where we are the Hub of
Entrepreneurship in the world we are the
Hub of business innovation in the world
we are the Hub of production in the
world
we have to stay that way if we want to
continue to compete in the world and I'm
hoping that will happen I'm an optimist
like I have a lot of faith because you
know people here
we are still I mean you think of all the
major companies in the world this is we
are the producer of them and we provide
a lot of benefits
to encourage entrepreneurship
and I hope that we will continue to do
that and there's a lot of people now
thankfully on the internet I mean
people around the world look at what we
put out on the internet
to learn from us uh you know like I was
invited recently to a couple shows in
London I was asking about their
demographics and all that stuff and
they're like yeah you know most of the
people here in the UK
watch U.S Purdue U.S content creators
and that was a really interesting thing
to me I was like what do you mean
because I you know I I don't consume
like that much content I I really try to
just learn my own ways and I don't
really follow what's going on in the
world like that they were like yeah you
know we have some creators here but most
of the people here are just watching
people in the US and I realized it's not
just the UK it's many people around the
world and so we have a lot of Educators
here we have to be now the consumers of
our own understanding okay
we have to be creators we have to be
innovators and then that also goes
through education system where we can't
just produce Factory workers anymore we
have to innovate our education system
and we
I was gonna say we suck there but we
have to really fix that up I mean we
have to really encourage Innovation we
have to encourage
the ability to think freely because the
advantage that America has
is
we became Who We Are by thinking
differently than everybody else that's
kind of like that Minority mindset
message because we didn't follow what
everybody else did I mean we have a
completely different like economic
system tax system than the rest of the
world we
cannot be a follower we have to be a
leader
in order for us to do that we have to
continue innovating and thinking
differently from the
People level to the National level and
you're right you know we have a long way
to go
but we are going to have to if we want
to stay competitive
all right so I want to get into the
specifics on that so if you were a
benevolent dictator and you were going
to say okay here's what we have to do
here are the principles whether it's you
know fixing education or what have you
what what do we need what are a small
handful of things that we need to do to
continue to lead to innovate to learn
the lessons that we need to learn well I
think part of that is the straight
Financial education and it has become
much more accessible but we have to know
how to learn right well so let's not
move off the first one so what the in
fact I'll let's get them out so
Financial education that's the first one
we're going to circle back to that to a
couple key points that you think people
need to learn about financial education
uh what else so we talk about now as a
society what do we need to learn to be
yeah like so the we started this episode
by saying look before we turn the
cameras on you were like thank you so
much for having me back on I'm getting
really paranoid that people are going to
get really hurt by what's happening they
don't understand that the triangle of
Doom uh they they just don't understand
how money works all of that so
we're going to
like help people get themselves out of
this mess it's going to be partly
Financial education so I think what else
the financial I mean if we talk about
the financial side it's the fact not
just Financial we're going to come back
to that I want to know if you were the
benevolent dictator and we know America
needs to continue to lead you were
saying that you know all across the
world people are listening to American
Educators which I have a hypothesis
about why that is that I'll round to
we're like the only country that until
recently was not into the tall poppy
syndrome so in the UK in Australia like
if you stick your head up and say I can
do something amazing people just SWAT
you down and it's like whoa I don't want
to try to be cool I don't want to try to
do anything amazing because people are
going to make fun of me when I was a kid
100 I was just like I'm going to be rich
yeah like I was so like I'm going to go
do amazing things but I think all of
that like Innovation right the idea of
the next one yeah Financial education
you need to innovate I think that is a
part of financial education
understanding the ability to lead
management all these things are all part
of financial education now if we talk
about how to succeed as a country
it's Financial education and that can be
period
if I mean look I think we need health
education I think we need to understand
how to be spiritually fit I think we
need to know how to be mentally fit and
then we need to know how to be
financially fit these are the four
aspects but now if we talk about now if
we're on the economic side how do we
produce entrepreneurs how do we produce
smart investors how do we produce people
who know how to save their money how to
invest their money that's the financial
education part but what stops so many
people from being able to do that well I
feel depressed or I'm anxious I don't
think that I can do it I don't have the
confidence to go out and do something I
don't believe in myself I'm surrounded
in a toxic environment if if you grow up
look I used to guess teach in Detroit
public schools and these kids are smart
hard-working kids I was actually just
talking to a guy last week teaching
Finance I was teaching life skills and
part of that was Finance but it started
with the core of just building some
confidence of thinking bigger because I
was talking to a guy uh he came to my
office last week he grew up in a rough
neighborhood in Detroit and uh we began
talking and he was like look I wanna I
wanna get to somewhere else in my life
he's like I got to where I am today
because I was an athlete I didn't want
to be like everybody else in the
neighborhood I started working out and I
became a good athlete that got me
through education now I work an okay job
I own a lot of shoes
but I don't have much else like I don't
have any savings I don't have any
Investments like I don't even know what
this stuff means I want to do something
different so now I start talking to them
and
what he tells me is like I grew up with
this mindset of
I don't care about being rich
I just want to get by that's all he
wanted and now he's like
he was telling me he read this book
called the millionaire mindset I think
that's what it was and what he was like
he was like that book talked about how
people who say I don't want to get rich
are lying to themselves and you have to
say that you want to become successful
that way you can actually achieve more
because we create these taboos around
money but like what stopped him it's he
had this limiting mindset that because
of where I came from because of all I
saw somebody like me can't do it then he
got a little bit of a taste of
weight you're telling me that I can
achieve more
because he never had been exposed to
that before and now because he just read
or listened to an audiobook that said
that now all of a sudden he's trying to
put himself out there we happen to just
talk in the gym and now you know he's
like dude like can you please give me
some sort of guidance and now I started
talking about different things that he
could do and he was like dude like I
cannot thank you enough because it's
just like it's not even that I did
anything it's just
he got a little taste of what's possible
trust me this is the entire reason that
impact Theory exists so you're in
Detroit teaching I was in Compton
building a company and I'm encountering
all these people very bright some of
them look there were morons just like
there are anywhere else but there were a
lot of incredible people and I began to
realize intelligence is evenly
distributed but mindset is not right and
because they have the wrong mindset
because they're asking the wrong
questions because there was one kid who
I was like bro you're so smart like why
aren't you out there pushing yourself
and he said oh my mom told me that the
world doesn't want people who look like
me to succeed right and I was like that
is the worst [ __ ] advice you've ever
heard in your life and I'm like I've
become obsessed with the Kobe Bryant
quote that booze don't block dunks yeah
you can get so good at finance that no
one can stop you like you can just out
invest people and
this is where I get obsessed about okay
there are a cluster of things that
mindset is certainly one of them
Financial education is certainly one of
them the education system in and of
itself is certainly one of them the
self-loathing thing that's become so
prevalent in America is one of them it's
like
I what I want for people is for them to
feel like I felt in the 80s now I didn't
grow up with money uh we weren't poor I
used to think we were poor but now I've
seen real poverty we weren't poor but we
were lower middle class and so I
couldn't have the things that I wanted
to have I had to start working when I
was 12 years old to buy I had to buy
myself a Nintendo my parents couldn't or
wouldn't buy me one and so I took a job
in a door Factory at the age of 12 so
that I could buy a Nintendo now when you
come up like that you learn a couple
things depending on how you're wired for
me what I learned was I really hate work
but it's really cool that I can go do
something someone will pay me for it and
then I can get the things that I want so
it gave me a sense of self-agency then
as I got older I read my own equivalent
of the millionaire mindset it wasn't
that but things that ended up teaching
me oh whatever you dream for you're
gonna fall short of so you better dream
really [ __ ] big and then go just
relentlessly acquire a skill set in
order to get good enough
so in the 80s I just believed I could
become anything I wanted but I was going
to pay an extraordinarily high price to
get there I was gonna have to figure it
out I was gonna have to outwork
everybody I was gonna have to go harder
nothing was going to be given to me
nobody owed me anything I was gonna have
to head down and just learn to fight
and that sense of like Hey You can have
anything you want this world is amazing
it's your oyster let's go but let's go
means let's go get strong let's go get
smart let's go get educated let's like
figure out what you have to do but booze
don't block dunks you can get so good
that even if people want to stop you
they can't stop you right now if I could
give people that mindset uh
an overwhelming number of them are still
going to fail I get that but you create
an environment like the US where man
really amazing people from all over the
world want to come here so that they're
not
struck him down by other people who
don't want to see a tall poppy they
don't want to see somebody stand up
above other people they're cheering for
it they want to do it themselves and
it's become a meme this really pisses me
off it's become a meme the whole idea of
people voting against their own interest
because they're just a temporarily
embarrassed millionaire yeah that that
was my entire youth until I was in my
late 30s I acted like the temporarily
embarrassed millionaire and it led me to
becoming an actual millionaire if you
see yourself as like this is all you're
ever going to be and you're stuck then
you won't do the things you need to do
to at least have a shot a lot of people
are still going to fail I get that
but man if you think oh if I it's what I
call the only belief that matters if you
believe if I put time and energy into
getting better at this thing
the world will still punish me uh rich
white people are going to take it away I
will never get anywhere that I want to
go you won't do the things but I think
that goes to that this is really a
mindset think of like
like I don't even know if it's
self-confidence or a little bit of
arrogance or a little bit of ignorance
where like for me
I you know you said that a person you
talked to their mom told them someone
like you can never make it the world
doesn't want someone who looks like you
to be successful and you know what you
said that was the worst advice I think
that's the best advice that you could
get because that makes you well at least
because I heard some things very very
similar and for me that put a fire on my
butt where I was like I'm gonna prove
you wrong I'm gonna prove you wrong I'm
gonna give you a middle finger and I'm
gonna go do what I want because I heard
did your mom tell you that my mom told
me that somebody who looks like me will
never be the CEO of a company so I need
to shut up and go study to become a
doctor wow I wish the world were more
like you I mean the thing is I always
had just a little bit of a hard head and
my mom said it out of love like I love
my mom yeah they always do it was for
because I was such a like I was very
rebellious but not in a bad way like I
wasn't doing drugs and drinking and
doing things like that I was like trying
to start businesses and in a traditional
Indian household
like my house like my parents were like
you have to become a doctor that's like
from the the
since I turned like one or two years old
they told everybody from America to
India just pray that's going to become a
doctor for my entire life that's all I
heard me playing football was a
distraction for me becoming a doctor me
doing a newspaper route was a
distraction from me becoming a doctor me
wanting to go to the gym was a
distraction all these things were
discouraged I told my dad I wanted to
start investing in real estate told me
you're stupid focus on your studies and
then when you're a doctor you can do
whatever you want I want to be clear
though that was all terrible advice it
happened that you pushed back against it
and proved them wrong but the advice
because most people listen the advice
was god-awful but I think it's like you
know we have to be able to channel pain
we have to know how to do that because
pain creates purpose
pain can create purpose it can and we
but you have to like
I mean I don't know if it's confidence
or a little bit of again like I was
saying arrogance or ignorance where you
have to we have to want more from
ourselves
as people we have to
know that we can produce more we have to
believe in ourselves I mean I don't even
know if it's belief because I never like
I if I look back to like my 17 18 year
old self and I remember telling myself
like dude if one day I ever made a
hundred thousand dollars in a year like
man I'm gonna be flying in private jets
so I'm gonna have all like I'm gonna
have all the money in the world
and then you do it and I was like wait
like this was a dream like one day and
then they did it and it's like
well I'm not flying in a private jet I
don't have all the nice stuff but I'm
pretty surprised that I did it and then
you surpassed that and then you take it
from a hundred thousand dollars a year
to a hundred thousand dollars a month
and like I can't imagine like when I was
like
17 to think that somebody could make
that in a month and you're like wait
that is possible but in order for that
to be possible you just have to like you
you have to have some sort of taste and
belief and that belief I don't know
where that comes from and I don't know
if it's just like you have to just be
like
you have to have this like I don't know
what the best way to explain it where
it's like dumb belief
you gotta want something really bad that
you just nothing like
science doesn't add up like two plus two
is four but you're telling me that two
plus five is 44. here's what people have
to understand the human animal is
designed to grow and get better
it's it's cultural transmission of ideas
that's how we become the dominant apex
predator
we're not smarter sorry we're not faster
we're not stronger we're smarter and so
it's the ability to learn this is why I
call it the only belief that matters
everyone needs to believe the following
statement if I put time and energy into
a specific thing I will get better at it
once you believe that everything else is
going to take care of itself you're
failing you're not making as much money
as you want you don't know Finance
whatever go learn it and once somebody
is like okay I'm going to go get good at
this thing I didn't need to be born good
at this I don't need to have a natural
inclination to it I have a goal and my
goal makes demands if you're Kobe Bryant
you have to practice basketball why
because your goal is to become the best
basketball player of all time if you're
Kobe Bryant and your goal is to become
the best basketball player of all time
and you spend your time swimming or
studying math you're never going to get
there so your goal makes a demand so
your parents weren't wrong if you wanted
to become a doctor then going on a paper
route didn't make sense what they
weren't realizing is you want to be an
entrepreneur and so that was just a
misunderstanding of what your goals were
but you both were right in the sense
that hey figure out what that thing is
that you really want to get great at and
then go do that thing I think that the
society also molds it because like it
wasn't that what's it so for example you
said my parents like what they didn't
know that that I wanted to be an
entrepreneur and I don't I think it's
more that they didn't understand that
other opportunities were possible
because when I said I wanted to be an
entrepreneur that was like they just
thought you were stupid there was a
horrible thing
I mean I think that you know whether it
be your parents your cousin your family
your friends or Society we we Encompass
ourselves into this little box that this
is what's possible for me somebody that
grew up like me somebody who's good at
what I'm good at somebody who looks like
me somebody who comes from my background
this is my possibility but the
opportunity we have here is
the whole table the whole world is your
opportunity but you have to believe that
first and that means then you're gonna
have to go against what you know maybe
what a lot of people are pressuring you
maybe you have support maybe you don't
and it's it doesn't really matter
because what you need is up here that
belief in yourself to now do whatever it
takes because for me it started with
listening to motivational tapes like I
listened to Eric Thomas blueprint to
success so many times that I knew the
words to like every single word of that
CD and
I was like wow like I can wake up
earlier
I might not be the most smartest or
whatever but I can work harder than
everybody else because that I can
control
how did I learn that because I started
this motivational CDs and and I tell
everybody to listen to it and I'm like
yo did you listen to it they're like yes
basic stuff I'm like oh okay like you
already knew this then I read a book
called Rich Dad Poor Dad by Robert
Kiyosaki the first time I ever got
exposed to financial education and I was
like holy moly like this is the most
important thing he taught you in that
book well like cover the cover like I
you got to understand I didn't grow up
with any like I don't know what
investing was I never heard a passive
income I didn't know you could invest in
real estate like I was so naive I like I
didn't know anything in that book that's
my beef people don't know how the world
works and this I was as guilty of this
as anybody but going back to the
triangle of Doom this is the so as a
refresher triangle of Doom interest
rates economy yeah and
um
sorry which one am I forgetting interest
rates economy and uh inflation and so
you've got if people don't understand
how that works they don't understand how
to move in order to either survive or
take advantage of the opportunities that
are going to present themselves but it
starts with understanding how the system
works understanding the system and then
not blindly trusting everybody like you
said you know you have distrust look I'm
on board with you I don't really trust
many people I don't trust what the
government says I don't trust what the
Federal Reserve Bank says I trust myself
but you gotta have take everything with
a grain of salt now why do I say that
because
okay we'll talk about interest rates
just for a second
The Mortgage Bankers Association without
a statement in 2023 and they said that
by the end of 2023
that they expect mortgage rates to fall
to like the low five percent
the National Association of Realtors
said something very similar they said
that by the end of 2023 they expect
mortgage rates to fall under six percent
I forgot the exact percentage but it was
under six percent
why
what is their intention you have a lot
of Mortgage Bankers and Realtors out
there saying what the heck is going on
why aren't people buying homes why
aren't people getting mortgages
and so now you have these I mean these
are Big agencies saying calm down it'll
be just fine
what is their justification
mortgage rates are too high right now
people can't afford home so they have to
go down
again analysis that's their analysis
versus the data now if you dig a little
bit deeper this is the financial
education aspect that I'm keep talking
about
now you can answer this question
yourself instead of just trusting
somebody else I mean I'm not saying
trust me I'm saying learn it so you can
figure out how to do it yourself because
I could be wrong you can be wrong
anybody can be wrong but at least you
know how to come up with their own
analysis
what affects mortgage rates two things
the interest rate that the Federal
Reserve Bank sets and inflation when the
Federal Reserve Bank raises interest
rates that makes borrowing for banks
more expensive which means they're going
to have upward pressure on where you
know what they have to sell it to you
like if you if you sell it a hat for ten
dollars and then the cost of the head
goes up to eleven dollars now the store
is going to have upward pressure to sell
the hat for 20 as opposed to 15 right
because their cost is going up so when
the Federal Reserve Bank raises interest
rates that's upward pressure mortgage
rates the second aspect is inflation why
inflation because
well when inflation happens it's a
little complex but when inflation
happens people are less people are more
worried about the dollar and when people
are worried about the dollar they're
less likely to loan money to the
government this is called a treasury
bond so in the financial world there's
something called the risk-free rate the
risk-free rate is if I loan money to the
government through a treasury note or a
treasury bond the return that the
government gives me the interest is
risk-free because we expect the
government to always pay back their
debts
so when inflation happens people are
less likely to loan money to the
government because they're worried about
the health of the dollar they're worried
about the government which means that
for the government to incentivize more
people to loan money to the government
they have to offer a higher rate
so when inflation happens people are
worried about the dollar people are
worried about the government the
risk-free rate goes up interest rates on
government debts go up if the interest
rate on government debts go up that's
going to push up the rates on mortgage
bonds as well because now
your mortgage return
would naturally have to be higher than
the risk-free rate because when you if
you're loaning money if I'm loaning you
money to get a home
in traditional Finance that's a riskier
investment for me than me investing my
money into the government because that's
risk-free so you have to give me a
higher rate of return than what I'm
getting from the government so higher
inflation
higher treasury yields
pushing higher mortgage rates so now
what is the analysis
inflation is higher than expected looks
like it's going to be around higher than
expected okay that's higher treasury
yields
higher pressure mortgage rates the
second factor is Federal Reserve Bank
interest rates well the FED keeps saying
that they're going to keep raising
interest rates now of course all this
can pivot they can pivot tomorrow but
based off of this information this tells
me that there's a lot of upward pressure
on mortgage rates mortgage rates are
around seven percent right now
but you have the National Association of
Realtors The Mortgage Bankers
Association two very credible sources
who are like the the source of
information for realtors and bankers
saying don't worry mortgage rates are
going to fall by the end of the year
this is why that education is important
yeah we're already so 2.3 trillion
dollars according to Fortune Magazine
have already been scooped out of the U.S
housing market alone so I'm very shocked
that in the face of 2.3 trillion dollars
of losses that people are pretty chill
got some more stats than that that I
found super disturbing
um we've got
um month over month housing prices have
declined for the first time since 2012.
um you've got
uh home builder sales have collapsed by
46 home buyers canceling 20.8 percent of
their construction contracts like it
seems like we're in the middle of a
housing reset of pretty aggressive
proportions so do you think people are
um willfully lying are they blinded by
their own narrative are they just trying
to be optimistic to keep people from
panicking this feels a little bit like
uh
masks don't help you're fine because we
had a shortage in hospitals and then
once that shortage was over it's like
nope actually you do need masks
you know that question I think it's it's
uh it's like are they a Sinister or are
they stupid okay that's the question
Sinister stupid or doe-wide and naive
right and so I mean I think that
I'll leave that up for anyone watching
this so listen to you come up with
another interpretation right no do you
have you don't have to tell me but do
you have an interpretation
I don't know if I do because I go back
and forth because it just doesn't but I
think
my wife talks to me about this I think I
have a very trusting personality by
Nature I have gotten scammed and screwed
over so many times interesting but I I
refuse to give up this idea of wanting
to trust people now yes that's on me I
get that but and my wife was like dude
you can't keep doing that and I'm like
look
if you scam me you screw me over I'm not
gonna do business with this with you
again sure you hurt me but do I want to
give up my trusting nature and do I want
the jagged personality or whatever and
you know I go back and forth I don't
have a you know a good answer on this
because I'm still trying to figure that
out about myself
I don't think many people are Sinister
my gut instinct is that's going to be
the most rare I think people this is
exactly how it plays out in business
certainty intoxicates people to be a
good leader you have to give people
certainty that's one of the most
important things you do as a leader to
give them certainty you have to develop
certainty in yourself to do that you
need a narrative The Narrative allows
you to connect dots so as we talk about
the triangle of Doom it's like we're
telling a narrative about how those
things flow but the reality is if we
could predict it precisely we'd be
gazillionaires so nobody can really
predict it but you have to move you have
to do something and so you look at the
triangle Doom or whatever you look at
the signs and the housing market and you
come up with a narrative and there are
incentives if you're us if you're in a
certain governmental body or whatever
there are certain incentives for you to
since you don't know to create a
narrative that leans one way or the
other yes and so
um if you're a YouTuber there's an
incentive to uh do Doom porn because
that's going to get a lot of clicks and
so even if you're like
I'm I I'm not being Sinister because
there really is something over here but
it's like I'm also nudged because like I
have an incentive so I have a feeling to
give them self-certainty to give other
people certainty they begin telling
themselves The Narrative that they
happen to be ever so slightly
incentivized to tell I don't think
they're doing it on purpose but you have
to have a narrative that's going to
allow you to move yeah so I we end up
there it's a combination of doe-wide
optimism and uh willful
not willful they they have to tell
themselves a narrative in order to be
effective in life yes and that narrative
gets a little rose-colored and then the
catastrophic mistake that entrepreneurs
make that I've been guilty of a
gazillion times
you forget to question your narrative
yes you get so busy telling other people
what it is telling yourself that you
forget to seek disconfirming evidence
which brings in the last piece of the
puzzle which disconfirming evidence
feels super bad right it does not feel
good when people are like you're wrong
and especially now in the days of the
internet you're wrong usually is said
you're a [ __ ] you're an idiot or Worse
yeah and so then you're you really want
to defend yourself which means Defending
Your narrative which then you entrench
yourself and it becomes Dogma yes put
one more point in this even Einstein who
gave us
the theory of relativity could not in
the later part of his life become one of
the people pushing the envelope of his
own theories because he got trapped in
his own Dogma I think you're 100 right
on that and like it gives us I mean
that's what I've been experiencing too
like
so on YouTube let's just talk about that
we can expand other places if we don't
have a very attractive title no one
clicks on it it goes into the YouTube
Cemetery no one's going to watch it
which was a huge like pull on my
heartstrings because I'm like why do we
have to title videos like this or come
up with these thumbnails and the reality
was like look if you want people to
watch your stuff like you know my team
was like you know you have good content
if you want people to actually watch
what you're putting out
you gotta be able to play in this game
and that was one of the reasons why I
created my briefs media newsletter
because because now I can avoid the
sensationalism I can avoid those titles
avoid all that click bait because in the
newsletter you get all the news that you
want like our Market briefs email you
get all the news you just click on the
email it doesn't matter like our subject
lines are like
black cups are cool you know it's like
you click it and then all the
information is there and now we can give
you because my goal is is unbiased I
want to give you the data so you can
create your own analysis and understand
what's happening because nobody else can
do that most media companies don't have
the ability to do that because they have
to get you to click and that's all they
tell you and I want to change that and
so for me it's like okay well if I want
to get you to hear about me and YouTube
I gotta I gotta come up with the title
but my goal is to make the content
educational so you learn and then say
look if you want more go to market
briefs briefs.co and you can see our
emails and join for free and get the
news in your inbox and you don't have to
worry about it
and
I think when it comes to incentives
though
like what you were saying where
we kind of forget or or we get put into
a box and then we ignore all the other
things or we have no interest no reason
to understand and what I mean by that is
if we go like the 2008 crash right
what led up to it well a lot you know we
like to point fingers well Mortgage
Bankers were making
um just bad loans they were loaning
money to people who shouldn't have
gotten it now if you're a mortgage
Banker what's your incentive my
sentiment is to make loans I'm on
commission I want to make as many loans
as possible if you got a 600 credit
score you can't qualify this I'm going
to give you this I'm gonna get a
commission okay so am I a bad person
because I'm trying to make money and
take care of my family well then it's
the bankers the the CEOs of the company
that are that are ruining it well what
is their incentive their incentive is to
increase the earnings of the company
their incentive is to make sure that
they can issue more loans than their
competitors so are they even for trying
to increase the value of their company
increase the share price well no it's
the people because they should have
known better they shouldn't have gotten
these loans they should have known that
if you're making 75 000 a year you can't
afford a million dollar home
well how many of them are financially
educated how many of them know the
basics of of how much mortgage they
should buy how to save their money how
to invest their money like none of us
have grown up learning about that so is
it their fault unless the government's
fault they should have regulated it do
we want more regulations so now it's
like everybody's going to have their own
incentive everyone's going to have their
own reason for wanting to do something
and this is why I go back to the
financial education aspect
like we can point fingers all day long
that is your fault their fault their
fault the end of the day if you cannot
protect yourself
it doesn't matter you have to know how
to protect yourself and that Shield is
that Financial education because now
look
your Bankers in the business of making
loans they want to make as much money as
possible it's reality the realtor wants
to sell your bigger home they get a
bigger commission check the car
salesperson they want to sell you a
bigger car the corporation they want to
sell you more stuff your company wants
to keep you employed there
this is the incentive you can hate it
love it or understand it and the
financial education is understand it
that way now you can at least make an
educated decision on what type of home
you want to buy and that's what is
lacking and this is where you know kind
of for me it keeps coming back to the
same thing because
yeah everyone's gonna have their own
incentives politicians are going to have
incentives to get votes they're going to
want to say things to get votes
corporations are going to want to say
things to get you to buy their stuff
sales people are going to want to push
their thing
and everyone's going to have an agenda
and now your agenda needs to be protect
yourself how do you protect and you know
we focus on the financial education side
but you can apply this to every aspect
of life
but you got to know how to protect your
wallet and that that only I mean you
cannot tell me that your Banker is going
to have a better
protection of your wallet than you are
you cannot tell me that a corporation is
going to protect your wallet better than
you can you cannot tell me that people
don't know how to protect it though but
so what are we doing this scares me and
we're relying on the government to tell
us what to do
and so this is where like what do we do
look and you know I could I keep going
back to financial education that's why
I'm an advocate for that because what
I'm saying is dude look you can rely on
the government all you want maybe
they'll help you man but I do not want
to rely on them
I want to rely on myself my own
Financial education don't rely on like
I'm not saying you rely on me I'm not
saying don't rely on a random guy on
YouTube learn
and what you said I'm 100 in agreement
with
listen to people who disagree with you
listen to both sides of the aisle
because if you know if you agree with
one thing and social media amplifies
this you go down a rabbit hole as soon
as you start learning about one thing
whether it's money health or it doesn't
matter you're going to get bombarded
it's only that one thing because that's
how the algorithms work you go deeper
and deeper and deeper down the rabbit
hole and anybody who disagrees with you
is stupid
but if you really want to build
intelligence you've got to break out of
that algorithm come out of the rabbit
hole and now study this side too
and maybe they're wrong and maybe you
learn it you realize wow they're even
more wrong than I thought or maybe you
have a more balanced opinion and this is
where real learning comes into play
because we have to learn how to learn
and we're not taught how to do that
how do we learn how to do that do you
think that game of money is too complex
for the average person to ever win this
is what I think is happening to the
middle class it's just too complicated
and unless the uh I'll I'll expand on
that
the reason that we've created rich and
poor is because of the fact that the way
that we're getting money into the
economy is by buying assets to buy
assets you really have to understand an
obscenely complicated game and most
people don't understand that game and so
they just say I'm just gonna go work and
I'm going to earn a paycheck and I'm
gonna I know how to live paycheck to
paycheck it's not ideal but like I get
by and I have fun and I'm able to raise
my kids and all as well well most people
aren't most people but fewer and fewer
people are having kids now and so we're
simplifying the game we're collecting a
paycheck we're entertaining ourselves
for reasonable amounts of money Amazon's
helping make like your average stuff
cheap so people don't really have like a
big incentive especially in an era where
the rates were just declining in some
debt basically was pretty easy to get a
hold of goods are getting cheaper and
cheaper so I don't have to
Tony Robbins money Master the game I
just play the game of going and getting
a paycheck and now all is well but the
way money Finds Its way into the system
in an era where we have to like inflate
inflate inflate is only going to people
to hold assets I don't think that is too
complex but I think the first issue is
Comfort is one of the biggest drugs in
the society and we many people are I'm
going to back you up before we get to
comfort
I think it's so complex you sound crazy
so that means I think you're carving out
a small piece of the money world and
saying just focus on this piece what's
this piece then
look money at its core is very simple
just like how Fitness at its core is
relatively simple in the fitness world
it's
it's eat less
work out more
to live a healthy lifestyle in the
financial World spend less than what you
make invest the difference in what and
and this is where it can be as simple as
you put your money into the S P 500 now
I'll explain what that means because
it's going to sound very complicated if
you've never been exposed to the money
S P 500 literally all that means is the
500 biggest companies in the stock
market
historically
the S P 500 has grown by seven to ten
percent a year on average over almost
the last century which means if you took
you know a hundred dollars a month and
that's all you did you don't look for
the next Google the next Amazon you
didn't try to find real estate
Investments you didn't try to do
anything complex all you did you had a
system and you just put your money into
that fund a fund that gives you exposure
to the S P 500 and you did nothing else
and he even automated it so you don't
have to do it manually because there's
brokerages out there that do that for
you if it was just completely automated
and you never looked at an individual
stock you never touched your Investment
Portfolio and all you did was spend less
than what you make and you just invested
100 a month
you would have retired a millionaire
with a hundred dollars a month
investment
so now what do we do we like to
complicate it
we like to say man this stock looks hot
get into this dock before it pops off
should we short this stock should I do
options should I go and do this or
should I do that should I you know and
we start trying to play this game think
because now we start to get into the
whole idea of this is fun this is
attractive how can I make more money
for a lot of people it becomes gambling
and this is where now understanding
investing
versus everything else investing
look spend less than what you make
if you're making 25 000 a year two
hundred fifty thousand dollars a year or
two point five million dollars a year
doesn't matter spend less than what you
make and you know it doesn't matter how
much money you make it starts with a
mindset thing there's a reason why
you've seen so many athletes make
millions and end up bankrupt I think
it's like almost 8 out of 10 NFL players
and a broker Banker within five years of
them leaving the NFL okay it's not just
a money thing there's we talked about
six out of 10 Millennials making over
100 Grand a year are broke there's a a
crazy high number I'm gonna say around
50 I don't remember the exact number but
of people making over 250 Grand a year
that are also paycheck to paycheck
it starts here spend less than what you
make live smaller smaller apartment
smaller car for a little while
have some extra cash
now what do you do with that you can
save some and you invest some where can
this money be invested I gave the
example of the S P 500 how do you put
your money into it well in the stock
market you can look at something like
spy Spy is a ticker symbol that gives
the exposure to the s p 500. another one
is voo I personally am invested in voo
that gives the exposure to the s p 500.
so if you just put your money in there
historically you would have seen seven
to ten percent growth a year if you say
you know what I don't even know what the
S P 500 is can't I just put my money
into the stock market
vti is an ETF meaning it's a fund that
gives you exposure to the entire stock
market
it's a total U.S stock market fund so
now if you just put your money there now
you don't have to you're not investing
in Amazon or Google you're investing in
all the stocks Amazon Google you are
technically investing not the individual
company every everything and so now it's
it's
we can dumb it down to as simple as you
know just put a little bit of money into
these things and now you're just going
to meet the market you don't got to
worry about all the fancy stuff
all the fancy stuff is what generates
all the clicks and the excitement and
the fun and the noise and the you know
that's what gets all the headlines it's
also where people lose their money so
yeah getting to getting to someone like
Ray dalio and a huge hedge fund those
guys are gonna time the market those
guys are going to use Ai and hundreds of
millions of dollars in research and all
of that to stay ahead of the curve Ray
was the one that said to me he's like
man the problem is that they don't
understand how sophisticated we are and
you've got your average person on the
street that thinks that they're going to
beat us to the punch and he was like we
measure our trades in milliseconds we've
got AI we've got like they've got 1800
employees or whatever and he's like yeah
the odds of you beating us are
effectively zero
so that puts people back into the
passive investing mode which is what
you're talking about okay I will say
that even that like you're so immersed
in it that you forget how complex even
that is like the ticker symbols people
are like what's a ticker yeah so and and
so like you know I'm gonna go back to
the conversation ahead with the guy from
Detroit recently where he was had we had
the same talk because I don't I have no
idea how to invest in a stock where do I
start and so now you're right that can
be daunting because now you open up one
of these apps and they're going to ask
you for your bank information they're
going to ask you for your social
security information which can be like
overwhelming
you can be distrustful like who are
these people can I just say something
really fast yeah in high school I was
taught calculus but not about the stock
market that's crazy
you and me both
uh I had look I didn't know what the
word dividend meant I didn't know what
passive income was I don't know what
wealth meant I had no idea what these
things were until I started reading
books and we all live in a bubble each
one of us
every single person lives in a bubble
and until you get yourself out of that
bubble you don't realize how big the
world is and how many different things
there are like when I broke this bubble
and started learning about money I mean
I I become obsessed with things like I
started just like I couldn't stop
learning and it blew my mind how much I
didn't know and then you know I started
learning about Fitness and Nutrition I'm
like oh my God so my stuff I didn't know
that I started learning about
spirituality what this is all the stuff
that I had never learned about before
there's a world of things out there and
when you think you know something I can
pretty sure like guarantee you that you
don't know it like the more you learn
the more you realize you don't know and
so like when we talk about okay how do
you now make your first stock market
investment there are apps out there that
will even do that for you
like they will just like they will just
ask you how aggressive do you want to be
with your Investments a little bit
medium a lot and then it connects to
their bank account and then they just
invests it for you but I think the
biggest the psychology like the
education part can be learned relative
with a few YouTube videos like if you
devote yourself for let's say three
hours you can figure that out just
search it on YouTube Google there's a
bunch of content there
the difficult part which is not so easy
to learn is the psychology part because
now if you're getting started in the
money game and you start investing your
money
and then you see markets go down and now
you see a portfolio in the red that's
where now most people will Panic freak
out and sell because they're like I was
supposed to get rich because of this I
put in three thousand dollars now it's
down to eighteen hundred dollars what
the heck happened
and this is where that psychology is so
important and that you cannot learn as
easily and what should the psychology be
so here the great irony of investing is
the best advice anyone is ever going to
get is Buy Low and sell High the thing
that people are least able to do is buy
low and sell High the reason is when the
price is low everybody else thinks it's
terrible it's trash and so now you have
to believe in yourself and your analysis
of the data enough to go okay it's the
right play to do it now even though
every the price being low means everyone
thinks it's trash and so you've got to
buy it when everyone else thinks it's
trash and then as the price goes up then
you have to think it's not going to go
up forever and so I'm actually going to
take some wins I watched this happen
with crypto it was surreal I had never
paid attention in the markets before so
I didn't understand what Euphoria looked
like and so everyone was just like it's
going to go up forever nothing bad could
ever happen and they were buying in at
the high and then as soon as the price
started dropping and look Michael Saylor
may end up looking the fool but what he
tried to tell everybody was any
increment of time less than in four
years in Bitcoin is just noise don't do
it and people still sold like [ __ ]
crazy and so yeah getting people to buy
low and sell high is already the most
difficult thing so if that's the wrong
psychological approach what's the right
approach how do you build the resilience
so on the first kind of basic level it's
when things are going around if you're
investing in the funds like I talked
about
if you look at history we have seen
recessions and Market crashes happen
almost every decade which means you see
boom boom boom ups and downs and ups and
downs and ups and downs
and the people that make the money are
not the people that sell at the bottom
is there a long Arc so if we're going up
and down is the market just yeah realize
as it's going up don't buy because you
know it's going to crash seven years
later buy when it crashes write it up
sell it'll crash again or is it like up
and down but with this trajectory for
those watching I'm raising my hand up
and to the right yeah
um listening I should have said uh so is
is there like you know over the last
hundred years has it returned seven to
ten percent yes because it's actually
gone up in value or including the
recessions and crashes the markets have
gone up a seven to ten percent a year on
average
and so and is that due to an increase in
productivity of companies like people
are actually spending more is it birth
rate like how is it possible that it
could keep going up like does at some
point yeah doesn't even the long Arc
have to go we this isn't sustainable so
there that's a good question and it's
actually probably a more complex
question that uh than you might be
thinking because
it's yes and more so what I mean by that
is okay if you bought before the before
at the peak of the 2008 crash if you
bought before everything Tanked
and you held on
you would still assuming you invested
into funds not individual companies have
a bankrupt if you invested into the
marketplace
you would be richer today than then why
if you held on so the psychology is now
you hold on and buy more when things go
down assuming you're investing into
funds if you're investing in individual
assets that then the research and
Analysis is completely different because
you want to make sure you're not buying
your way into bankruptcy
so now the question is why does the
market go up well the first part is
value creation right Amazon is working
every day to
increase how much value that they're
putting out they're working to create
new products they're working to make
buying online better they're working to
increase efficiency and I'm going to
talk about efficiency in a second
because that gets into like artificial
intelligence and reducing costs and
things like that
in addition to that so you have company
every single company is trying to do
this if your company's not trying to do
this they're dying every single company
is trying to produce more value make
more money create a better product
but in addition to that it goes back to
everything that we just talked about
why does inflation happen
you know the FED says our goal is two
percent inflation why why why not zero
percent why not negative inflation
because that would make things cheaper
right and so now understanding well why
does inflation happen
if you look at our economic system
and this is where again Financial
education is so important
two percent inflation is just enough
inflation the most regular people don't
notice it
doesn't mean that it doesn't happen it's
just enough why do we want it and so I'm
gonna get to that so it's just enough
that most people don't notice it but why
does it continue to happen because what
is inflation it increases the amount of
dollars out there right it increases the
monetary of supply for dollars mean more
money to spend more money to spend means
you got more money to go to Chipotle
that's why over the last 50 years we
have seen the prices of things steadily
increase a hundred dollars in 1970 could
buy you way more than a hundred dollars
today I'm not sure that's quite true so
here's how I've always thought of
inflation and the reason that we want a
little bit of inflation is that if
it I'll call it the Bitcoin Pizza
problem
so Bitcoin is a finite Supply which
means that it will you'll never be able
to inflate it now it can still lose
value obviously we've seen that it can
go up in value we've seen that but if if
the cost
if the value of Bitcoin goes up over
time because it can't be inflated then
you could buy a pizza today this
happened to a guy he buys a pizza for
what 17 Bitcoin whatever and then that
17 Bitcoin goes on to be worth 200
million dollars and it's like oh God
like that was a mistake I should have
held on to it so if money has a
deflationary effect meaning that if I
have a thousand dollars today that
thousand dollars tomorrow might have the
buying power of two thousand dollars
today so it's like I'm incentivized to
hold it now if I'm incentivized to hold
my money there's no velocity of money
there's nothing moving Goods aren't
being bought and sold people are just
trying to hoard their money and so even
though people have this money and it
it's able to buy more in the future the
same thousand dollars then I'm
incentivized to hold it whereas if it
goes down a little bit it loosens that
sense of well this isn't going to be
more valuable tomorrow so I'm never
going to look like a fool so I might as
well go get the thing that I really want
well why not zero percent inflation then
why doesn't the fact I do that it's an
excellent question because I don't have
it that doesn't increase the economic
system it doesn't increase the size of
the economic system if you want to is it
really though so is the only way to get
inflation to print
because what I'm trying to reconcile in
my head is yes there's more money but
the price of things then just goes up
and so you're still only buying the same
amount so okay there's a couple aspects
of this when inflation inflation by its
definition means you're inflating the
monetary Supply what that results in is
the value of the dollar dropping which
means so like for the government example
why does the government want inflation
because that means they can pay back
their debt I get why they want cheaper
down because they're printing money
right and so the first aspect is they
can continue to pay back their debt with
cheaper dollars but then it's basically
an extra two percent tax or whatever
percentage they get a little bit of
extra right that benefit the second
thing is they have more spending ability
it goes to increasing the size of the
economy because look I'll go
a financially smart person is going to
make fifty thousand dollars a year
invest some of that save some of that
and spend some of that the government
doesn't work that way if the government
made 50 Grand they're going to spend all
50 and then an extra 10. and so how do
they do that well why well why do they
do that it's stimulative it's it grows
the economy when the government spends
money what does that mean well if the
government spends money and let's just
say infrastructure they're paying
contractors they're paying a company
more money is entering the economic
system so as inflation happens when the
government spends more money more money
is coming into the economy and so what
does that do that grows the economic
system at a cost the value the dollar
goes down and so our system we have
companies right the economy you have
investors who own a piece of the economy
and you have consumers every single
person is a consumer Rich poor middle
class businesses every single person is
a consumer but most people stop there
most people are just consumers investors
own a piece of the economy
now the Federal Reserve Bank you have
kind of over here
they're working to increase our economic
system they want to grow the system they
want to grow the economy how they do
that you increase how much money comes
into the economy you increase consumer
spending ability how do you do that
increase how much money is out there and
so if consumers are spending money
well how can you increase how much they
spend you can give them more money to
spend and if more money keeps flowing
into the economy there's more dollars in
there that can be flowing through the
economic system which then will benefit
the economy because I mean businesses
can get more money because there's more
dollars out there and businesses are
getting more dollars the investors also
benefit because now businesses show more
Revenue more profits
sure the value of the dollar has gone
down slightly but on a nominal level
there's more dollars more wealth more
money accumulated here
this is why inflation is so important to
understand because consumers don't
benefit from inflation sure maybe you
can buy more stuff if more money comes
and if you get more dollars
but consumers now have to pay for things
with a deflated dollar but am I crazy
you get two percent more dollars but
things cost two percent more
sort of
that would be in a perfect world in a
vacuum but it's roughly that right I
mean this really is a tax this is the
government it's getting the ability to
spend two percent more money it is 100
attacks but it isn't looked
inflation has been around two percent a
year historically or three percent
historically but does that mean that the
monetary Supply is increased by three
percent a year no the mo the amount of
dollars out there has increased way
faster and this is the big argument that
people say that spending money does not
cause inflation this is the big argument
here because if you look at the 2010
spending money like the government well
spending more money than they have so
printing uh and spending
with the 2008 crash happen and we
started the unleashing the quantitative
easing we started opening up the money
printer and money is flooding our
economy
uh you had some people saying this is
going to cause inflation
but we never really saw a tidal wave of
inflation after the 2008 crash inflation
never really saw a big spike at all like
it was pretty contained around like that
three percent Mark and so now we had
everybody saying hey look money printing
doesn't cause inflation we can print as
much money as we want we saw inflation
at around three percent but our monetary
Supply didn't increase by three percent
it was way more than that
I have a hypothesis I'll be curious to
see if I'm going in the right direction
here sure the money printing that they
did though was just to keep people from
losing their homes so they printed the
let's say roughly exact amount of money
they needed to print in order to keep
things status quo
well
it's you
that's that's like the government cannot
predict how much money will be needed in
order to do that they they sent out
stimulus checks in order to stimulate
the economy during the 2008 crash
what does a stimulus check intended to
do
it is intended to stimulate the economy
but we assume that it's intended to con
to stimulate the individual
the individual is a consumer so if you
get a two thousand dollar check what
does that do or maybe you can make one
month of mortgage payment but what were
people doing they're going out and
spending it stimulates the economy it
gets the economy moving again businesses
start making money again and so that's
that's really dark but then so I I'm
hold on I might be misinterpreting this
but that could be really dark so let me
say what it sounds like happened in
2008.
I just lost my home
brutal gut punch I'm living in a tent
this is so gnarly oh my God
I get my two thousand dollar stimmy
check and I just go buy the normal
things that I would buy but maybe this
goes back to your initial statement I
I'm buying food that the vast majority
of the things that I buy are going to be
my Mainstays so I'm it's not like I go
out and buy a new truck I'm gonna go out
and buy my eggs and uh you know go see a
movie or two maybe go out to dinner or
something like that but that's really
what it sounds like if they can pour
that much money into the system and
inflation doesn't go up then people
spending habits
roughly would stay the same unless
somehow that money went into the system
and it created additional
productivity so that the there wasn't
people fighting for the same number of
items the number of items actually went
up and so the price of everything stayed
the same that what you said makes that
prediction so okay
the government if the government center
two thousand dollar stimulus checks and
everybody put that money in their
savings account and didn't spend it yep
it wouldn't grow the economy correct
that's not what the government wants
they want you to spend that money yes
it's a way to encourage spending because
we are a consumer people should have
saved that money let's be very clear
unless they needed to eat so I'm talking
about what the government attends people
should invest a piece of their money
save a piece of their money yeah but I'm
trying to speak to human behavior is
does the government understand
just the ugly truth is is what I just
said true 100 look the government knows
we're a consumer Nation
like it's not just the US like the whole
world knows the United States is a
consumer Nation people here spend more
than what we make so like because you
talked about the inflation issue in 2008
I wanted to expand on that a little bit
because
money isn't just money like our we have
two types of money in our economic
system we have actual money and then we
have credit people don't spend based off
of how much money you have in my bank
account they spent based off how much
debt I can qualify for so if I have a
hundred dollars in my bank I can still
spend 500 dollars
and what happened in 2008
is
first
credit levels fell because now if I so I
couldn't even get credit I couldn't get
credit because if my income goes down I
lose my job I'm no longer credit worthy
to a bank banks are not going to want to
loan me money so before I had a hundred
dollars in my bank but 600 worth of
spending ability because I could have
let's just say got a 500 loan or credit
line or whatever
now can I ask you a question keep keep
where where you were going but I need to
understand something so fractional
Reserve banking I understand how that
works so when you go for a home mortgage
they don't have to have that whole price
it's like only whatever 10 yeah but how
do credit cards work are they able to
create debt out of thin air in the same
way that a bank does or are they do they
have actual one-to-one reserves so let's
highlight this and then we can get to
credit card companies about that too
so I have the spending ability of six
hundred dollars 500 is a loan 100 is
actual cash in the bank money yep I lose
my job like everybody else now I lost
500 of the spending ability I only have
a hundred my spending ability crashes
then come the stimulus checks as a way
to stimulate now I have a hundred
dollars of money and then two thousand
dollars in the government now I have
twenty one hundred dollars now I can go
out and start spending again I start
spending again businesses start making
more money
there's more dollars in the economy
and then I get another job and now I go
from a spending ability of a hundred
dollars because I already spent the two
grand back to 600 so now there's more
money out there
and the credit starts to go up but the
inflation never really happened like we
never saw it really pass through
and now we're seeing the effects of the
inflation I forgot the original question
delayed oh 100 like it's what we were
trying to figure out to reorient was in
2008 housing crash stimulate the hell
out of the economy pump a bunch of money
in but inflation doesn't go up I then
had a hypothesis about why which is very
gloomy yeah and so now you know you said
was it delayed you know I think we
talked about this previously where
if I took a dose of heroin to it today
I'm not gonna die
you know I might like it and I might say
okay let's do another one and but to
keep chasing the high I might keep
increasing my dose
now if I keep increasing my dose but
nothing bad happens to me does that mean
that it's bad for me or good for me
well nothing bad happened yet but
eventually right you're going to hit a
point
we know scientifically that if you keep
increasing it your odds of something bad
happening keep increasing
well what are we seeing now in the money
world
in 2008 we printed a lot of money we
didn't see the full side effects of the
heroin we didn't see the full effect the
pain of the inflation we did it again in
2001.
now what we're starting to see happen is
over the previous Decades of money
printing overspending we're starting to
see the side effects of it and now the
question is what are we going to do are
we going to just shoot up again and try
to delay the real effects of it and just
like okay calm the withdrawal symptoms
or are we going to actually solve the
issue and fighting an addiction is
painful you want to get off of a drug
addiction you're going to have to go
through pain and to get back out of
analogy and into what we're talking
about that's spend less money spend less
money from the government and that means
people have less stuff that means less
government spending
that means more saving less spending
and that is painful especially when
you're accustomed to having the nice
stuff and being able to buy whatever you
want that causes Financial pain people
lose jobs
that causes economic pain businesses go
under and that is
like
we don't nobody wants to see that pain
but the unfortunate reality is now
because of the inflation problem
if you want to solve inflation
you're going to have to go through that
pain and what the Federal Reserve Bank
is saying is we want to solve the
problem without enduring the pain we
want to get off the heroin without
having to withdrawal symptoms
well unless you have some fairy dust
where you can do that sure but
withdrawal symptoms are often a
byproduct of trying to leave a drug that
you're addicted to in the money world
trying to get off of the inflation High
is
has a side effect of economic pain
and now this is what everyone's saying
that we can avoid
but what I'm saying is be prepared that
way if we do see more economic pain that
you can protect yourself and not just
protect but also capitalize in
opportunities that might come your way
and so you know we've had a lot of kind
of build up and this is where now
understanding look we are starting to
see some effects of this and over the
next you know decade we're going to see
a lot of things change we have a lot of
corporate debt a lot of national debt a
lot of household debt as interesting if
interest rates continue to rise
it's going to cause pain now we could
shoot up again the FED could cut
interest rates and start stimulating and
they kind of get the economy going again
but then that makes the inflation
problem worse
where can people stay in touch with you
to
um be up to the minute on this stuff
absolutely so I covered this on my
YouTube channel minority mindset if you
go to briefs.co you can join my free
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subscribe and until next time my friends
be legendary take care peace oxygen
pretty important for human life there's
no price on it why it's not scarce
something like diamonds not that
important to human existence yet has a
huge price because the demand way out
strips of supply