[SPEAKER_00]: Make no friends in the pits and you take no prisoners.
[SPEAKER_00]: One minute, you're up half a minute and soybeans in the next bull.
[SPEAKER_00]: Your kids don't go to college and they've redesessed your fence here.
[SPEAKER_00]: With me?
[SPEAKER_00]: The revolutions start now.
[SPEAKER_00]: Start.
[SPEAKER_03]: We have to pass the bills so that you can find out what is in it.
[SPEAKER_01]: Cardinals machine back off!
[SPEAKER_01]: You are about to enter the Peter ship show.
[SPEAKER_01]: If we lose freedom here, there's no place to escape to.
[SPEAKER_01]: This is the last stand on Earth.
[SPEAKER_01]: The Peter ship shall be solved.
[SPEAKER_00]: I don't know when they decided that they wanted to make a virtue out of selfishness.
[SPEAKER_00]: You're money.
[SPEAKER_00]: You're stories.
[SPEAKER_00]: You're freedom.
[SPEAKER_00]: The Peter ship shall.
[SPEAKER_02]: This is Peter Schiff here at the Peter Schiff Show podcast.
[SPEAKER_02]: It is another live episode about 930 in the evening here in Puerto Rico.
[SPEAKER_02]: Today's podcast, I'm going to talk almost exclusively, but probably not exclusively about the Federal Reserve.
[SPEAKER_02]: And the reason for that is I watched for a couple hours earlier today, the Senate testimony of Kevin Wash,
[SPEAKER_02]: who is Donald Trump's nominee to become the next fed share and obviously there's a lot of attention being placed on this nomination because a lot of people believe that Trump is putting a yes man, a puppet.
[SPEAKER_02]: uh... into the fed who is going to operate basically with trump pulling the strings because we saw how critical trump was of the current chair foul pal had still is and how he trying to fire at least a cook he's trying to stack the fed because he believes he's smarter than the other members of the f o m c uh... and the chairman that he knows better
[SPEAKER_02]: where interest rates should be.
[SPEAKER_02]: He wants interest rates much lower.
[SPEAKER_02]: And so he wants a Federal Reserve that shares his outlook and wants to lower rates.
[SPEAKER_02]: So I think there's probably more attention being focused on this particular nomination and confirmation than probably of any Fed share in recent memory.
[SPEAKER_02]: But before I get into that,
[SPEAKER_02]: I wanted to take an opportunity to introduce you again to one of the newest sponsors that I have here on the Petership Show podcast and that is investing.com and they just recently became a sponsor.
[SPEAKER_02]: I think this is the second time I'm mentioning them.
[SPEAKER_02]: on the program.
[SPEAKER_02]: And, you know, I've been using investing.pro, the free version on my own.
[SPEAKER_02]: I really didn't even know that they had a premium version.
[SPEAKER_02]: I was using the free version, and in fact, it's up on my screen right now.
[SPEAKER_02]: You can check it out.
[SPEAKER_02]: These are live futures quotes.
[SPEAKER_02]: And I was always, whatever I do this podcast, I would have investing.com, you know, on my screen.
[SPEAKER_02]: And I, so I can see what's going on.
[SPEAKER_02]: And here you can see S&P futures are up about a half a percent.
[SPEAKER_02]: You've got the dial futures up top up almost as much the Nasdaq 100 futures there.
[SPEAKER_02]: They're up almost 70 basis points.
[SPEAKER_02]: And the S&P small cap Russell 2000, that's up 80 based.
[SPEAKER_02]: So you can see all that and you can also get information on a lot of major foreign markets.
[SPEAKER_02]: So that's mainly what I was using it for.
[SPEAKER_02]: But now they have something called investing pro.
[SPEAKER_02]: And so I've opened up an account there.
[SPEAKER_02]: This is there.
[SPEAKER_02]: a premium service, but they have a lot of very valuable information that's available here.
[SPEAKER_02]: Like I set up a watch list, you can set up multiple watch lists, like I got one for inflation, I got even one for crypto, but this one is a portfolio, it's kind of my portfolio.
[SPEAKER_02]: So it has a lot of stocks that I own myself.
[SPEAKER_02]: Um, and, you know, a lot of these stocks, of course, are owned by our clients in our managed accounts in our mutual funds here.
[SPEAKER_02]: For example, here, tents and holdings, number 700 in Hong Kong, right?
[SPEAKER_02]: It gives you the price here.
[SPEAKER_02]: How much it's up?
[SPEAKER_02]: Hong Kong is trading right now.
[SPEAKER_02]: It's live, right?
[SPEAKER_02]: The market's open.
[SPEAKER_02]: So you're getting live quotes.
[SPEAKER_02]: But if you click on the stock, you get a lot of information about,
[SPEAKER_02]: I mean, tremendous amount, and you can get news on the company, get information on the dividends, the history, what it pays, you can get earnings information, and not just recent earnings, but you get all the forecast here.
[SPEAKER_02]: You can get forecast going all the way out to 2035.
[SPEAKER_02]: This information that you get.
[SPEAKER_02]: Um, look at all the financials, a lot of people industry professionals pay a lot of money for this stuff.
[SPEAKER_02]: I mean, my portfolio matters, we subscribe the Bloomberg too.
[SPEAKER_02]: It costs a fortune to get this data, uh, but you can really get this data, a lot of it very inexpensively, uh, from from this service.
[SPEAKER_02]: Uh, so if, you know, if you, if you're a managed account customer of mine and, you know, you're curious about the stocks in your portfolio, because you don't know much about them and we picked them, you can, you can enter them into this, uh, you know, program here.
[SPEAKER_02]: And you get all kinds of information about the stocks that you own, because normally, we don't tell you anything.
[SPEAKER_02]: We just buy them for you and you trust us.
[SPEAKER_02]: But if you want to, you know, double check what we're doing, you know, you can get all this information.
[SPEAKER_02]: Right?
[SPEAKER_02]: If you're not in a managed account of mine, if you're just doing it on your own, this is very valuable information to help you pick stocks.
[SPEAKER_02]: To try find stocks that are good values, low PE's, high dividends, a lot of earnings growth, good balance sheet, all the information that you need on these
[SPEAKER_02]: connection because earlier they were um so I don't know why this is the problem with doing this of live on a why I'm not getting these charts but see I'm zooming in I mean you can get these charts you can get them for all different time frames you can mark them up you can do all kinds of technical analysis on there
[SPEAKER_02]: This is probably not the fault of investing pro.
[SPEAKER_02]: This is, oh, here we go.
[SPEAKER_02]: So here's the chart.
[SPEAKER_02]: But looks, they've got to blow it up, right?
[SPEAKER_02]: You make the chart big, and you can change the time frames.
[SPEAKER_02]: There's a lot of stuff you can do with these charts.
[SPEAKER_02]: I don't have a lot of time.
[SPEAKER_02]: I want to get back to the podcast, but you should give it a shot, sign up.
[SPEAKER_02]: for this use the link the link in the description of this video there's also a QR code for investing dot com pro you want to you want to get the premium version because there's a hell of a lot of value for not a lot of money anyway let me get right into the into the podcast so before i start talking about my reaction to to wash
[SPEAKER_02]: uh... and his testimony i want to give everybody a little background on the fed now i know i've spoken about this in the past but you know i get it you know the audience grows not everybody was listed in a couple years ago when i might have you know explained it uh... and so i'm gonna do it again
[SPEAKER_02]: So it may be repetitive, just in case you heard the explanation before.
[SPEAKER_02]: But a lot of people don't know anything about the origin of the Fed.
[SPEAKER_02]: I mean, maybe they think we always had a Federal Reserve, which we did not.
[SPEAKER_02]: The Federal Reserve act was passed in 1913.
[SPEAKER_02]: So prior to 1913, there was no Federal Reserve.
[SPEAKER_02]: Now, it wasn't that there were no central banks.
[SPEAKER_02]: They're actually worth.
[SPEAKER_02]: The Federal Reserve is not even the first central bank we had.
[SPEAKER_02]: and it should have been three strikes your out because this is the worst of the three and it's also been around the longest which is the biggest problem this central bank has been around for more than a hundred years the first two only lasted about twenty years each
[SPEAKER_02]: Unfortunately, the Fed has been around for more than five times as long as that's the problem.
[SPEAKER_02]: But the first central bank we had, I think, started around 1791, something like that.
[SPEAKER_02]: I don't know, I think.
[SPEAKER_02]: And it lasted about 20 years.
[SPEAKER_02]: That's it.
[SPEAKER_02]: Then they chartered another one, the second bank.
[SPEAKER_02]: A lot more people are familiar with that one.
[SPEAKER_02]: That one lasted about 20 years, but that one was ended by Andrew Jackson.
[SPEAKER_02]: And that was the best thing that he did as president was kill the second central bank of the United States.
[SPEAKER_02]: Then it was about 80 years between the second central bank and the Fed, the third central bank.
[SPEAKER_02]: And those were probably the best 80 years we had as a country.
[SPEAKER_02]: I mean, not counting to Civil War, right?
[SPEAKER_02]: So the Civil War was probably the worst four or five years we've had, right?
[SPEAKER_02]: We were having a war with each other, right?
[SPEAKER_02]: But after the Civil War ended, 1865, we didn't have a Fed.
[SPEAKER_02]: And we didn't have a Fed until 1913, just before the first World War.
[SPEAKER_02]: But for all those years, the country had no central bank at all.
[SPEAKER_02]: And that's when we had the greatest economy.
[SPEAKER_02]: Even Donald Trump talks about how great our economy was in the 1880s, 1890s, 1900.
[SPEAKER_02]: One of the reasons it was great was because we didn't have a central bank.
[SPEAKER_02]: We had sound money, we were on the gold standard, and we had the industrial revolution, we had this huge economic boom, the gilded age, all this great stuff, all the immigrants that were pouring into the country, they came in when there was no central bank.
[SPEAKER_02]: We would be better off without a central bank.
[SPEAKER_02]: Now, why, after 80 years of economic success, did they resurrect,
[SPEAKER_02]: the central bank for the third time because the reasons that they gave have nothing to do with the Federal Reserve we got now.
[SPEAKER_02]: In fact, had somebody proposed back in 1913, the current Federal Reserve.
[SPEAKER_02]: It never would have been enacted.
[SPEAKER_02]: Nobody would have been dumb enough to buy it.
[SPEAKER_02]: So what was the goal of the Federal Reserve?
[SPEAKER_02]: Well, there was a, I think there were two or three main objectives.
[SPEAKER_02]: But one was to provide a superior bank currency, because number one, the Federal Reserve was independent.
[SPEAKER_02]: It wasn't part of the government.
[SPEAKER_02]: It wasn't just independent like today, I'm just jumping ahead of myself.
[SPEAKER_02]: But war said that yes, the Fed is independent from government but it's not independent of government or something like that.
[SPEAKER_02]: That it was part of the government.
[SPEAKER_02]: it's not supposed to be part of the government.
[SPEAKER_02]: That's that was the design.
[SPEAKER_02]: And what are the ways you know this?
[SPEAKER_02]: If you get a letter from the Federal Reserve, it's got a stamp on it.
[SPEAKER_02]: If you get a letter from any government agency, there are no stamps because they get it franked through the post office.
[SPEAKER_02]: See if the government sends mail, they don't have to buy a stamp because they own the post office.
[SPEAKER_02]: So they just send it.
[SPEAKER_02]: But the Federal Reserve has to actually buy stamps from the government.
[SPEAKER_02]: Why?
[SPEAKER_02]: Because it's not part of the government.
[SPEAKER_02]: It's a private banking syndicate.
[SPEAKER_02]: And the reason it's private is because there's no constitutional authorization for it to be part of the government.
[SPEAKER_02]: Because if you read the Constitution, you don't have to understand it.
[SPEAKER_02]: If you read it, the U.S. government is not authorized to print money, right?
[SPEAKER_02]: Issue bills have credit.
[SPEAKER_02]: That's paper money.
[SPEAKER_02]: The states are denied the power to do it, and the federal government is not authorized to do it.
[SPEAKER_02]: All the federal government is authorized to do is coin money.
[SPEAKER_02]: That's not the same as admit bills of credit.
[SPEAKER_02]: The states, the Constitutional Article 1 section 10, says no state shall coin money or admit bills of credit.
[SPEAKER_02]: and the only thing article one section eight let's the federal government do is coin money they're not given the authority to emit bills of credit and again if you understand the constitution you read the 10th Amendment
[SPEAKER_02]: The powers are denied to the states and given to the federal government.
[SPEAKER_02]: So the states can do anything that they're not prohibited from doing.
[SPEAKER_02]: And the federal government can only do those things that it is specifically authorized to do.
[SPEAKER_02]: And so the federal government is not authorized to coin money.
[SPEAKER_02]: So it's not authorized to print money so it can't do it.
[SPEAKER_02]: It can take money and put it into a coin.
[SPEAKER_02]: Well, what's money?
[SPEAKER_02]: Well, the only thing that can be money is gold and silver.
[SPEAKER_02]: because the constitution says that no state shall make anything but golden silver legal tender for payment of debt and the federal government has not given the authority to make anything legal tender so it doesn't have it.
[SPEAKER_02]: So it's set up an independent bank to do things that the U.S. government cannot do on its own.
[SPEAKER_02]: So number one, that's why the Federal Reserve is independent.
[SPEAKER_02]: But
[SPEAKER_02]: One of the main goals was to create a superior banknote to the private banknotes that were already in circulation at the time.
[SPEAKER_02]: You see, even though we were on a gold standard, banks, private banks all over the country issued note currency backed by gold.
[SPEAKER_02]: But the problem was, what if I had a note from a bank in Boston and I went out to California and I tried to spend it?
[SPEAKER_02]: How does somebody in California know it's real?
[SPEAKER_02]: He might not know what banks are in Boston.
[SPEAKER_02]: Maybe it's counterfeit.
[SPEAKER_02]: There was a lot of questions.
[SPEAKER_02]: It was hard.
[SPEAKER_02]: You know, if you took the note,
[SPEAKER_02]: far away from where it was issued because you know we didn't have these big banks that had branches all over the country and you didn't even have a telephone you know you couldn't validate I mean I did we guess they had the telegraph at that time but but you know it was in as easy to validate if the check was any good you know or note not even a check a bank note right in IOU from a bank
[SPEAKER_02]: And, you know, some of them had dubious quality.
[SPEAKER_02]: You didn't know how much gold actually backed it up, right?
[SPEAKER_02]: Who the hell knew?
[SPEAKER_02]: So the idea was to create a Federal Reserve note, a private bank, and the Federal Reserve note would read discount the notes of other banks.
[SPEAKER_02]: So what would happen is if you had a note from a bank in Boston,
[SPEAKER_02]: Instead of taking that note out to California, you would take that note to the Federal Reserve.
[SPEAKER_02]: You would give it to them, and they would substitute their own note.
[SPEAKER_02]: They'd give you a Federal Reserve note.
[SPEAKER_02]: They would take that note.
[SPEAKER_02]: and give you a Federal Reserve note.
[SPEAKER_02]: Now what the Federal Reserve was required to have backing its note was that note plus 40% gold.
[SPEAKER_02]: So the Federal Reserve had to back each one of its notes with the note of another bank plus how 40% gold backing it up.
[SPEAKER_02]: Now you take that note that Federal Reserve note
[SPEAKER_02]: to California, and now the California Bank Reckenda, who I'm not the bank, whoever you give it to, oh yeah, that's a Federal Reserve note, that's the Bank of the United States, that's our Central Bank.
[SPEAKER_02]: I recognize that, I'll take that note, and it was supposed to be of higher quality than other notes that didn't have 40% goal backing.
[SPEAKER_02]: Maybe they had 30% or 20%.
[SPEAKER_02]: But of course,
[SPEAKER_02]: the IOU was a hundred percent redeemable in gold.
[SPEAKER_02]: You can always get gold.
[SPEAKER_02]: So if you had a note for a hundred dollars, you could get five ounces of gold because gold was twenty dollars an ounce.
[SPEAKER_02]: So we were always on the gold standard.
[SPEAKER_02]: All the federal reserve notes were redeemable in lawful money.
[SPEAKER_02]: Gold.
[SPEAKER_02]: But in order to issue the Federal Reserve note, they had to be 100% back by another form of commercial paper, a note from another bank, and 40% gold.
[SPEAKER_02]: High quality notes.
[SPEAKER_02]: What is the Federal Reserve note back by now?
[SPEAKER_02]: Nothing.
[SPEAKER_02]: It's got lower quality than any of the notes that were in circulation prior to 1913.
[SPEAKER_02]: So instead of a superior note, it's a lousy note.
[SPEAKER_02]: Now,
[SPEAKER_02]: All right, so I am discussing the origins of the Federal Reserve.
[SPEAKER_02]: And you know, there's probably not that many people in this country who know what I'm telling you right now.
[SPEAKER_02]: I mean, there are people who probably have masters or PhDs in economics and finance that never learned this stuff.
[SPEAKER_02]: I don't think they even teach this at the university level.
[SPEAKER_02]: I don't think university professors know this.
[SPEAKER_02]: The only reason I know this is my father told me, otherwise I probably wouldn't know it either.
[SPEAKER_02]: So now you guys know it because I'm telling you, right?
[SPEAKER_02]: Because this history is completely lost.
[SPEAKER_03]: Because they probably don't want to
[SPEAKER_02]: on anybody to know why we have a fed right they just want to know this is how it's supposed to be put superior to the note currencies that were in the federal reserve and again this was a private bank but it was a nationally charter bank that would be more recognizable
[SPEAKER_02]: And, you know, what if there was some fake bank that came up and just set up shop and you had a note, how would you know, right back then?
[SPEAKER_02]: So, you know, it wasn't a bad idea in theory, right?
[SPEAKER_02]: It wasn't a bad idea.
[SPEAKER_02]: The problem is in practice, it's the camel's nose under the tent.
[SPEAKER_02]: That is the problem.
[SPEAKER_02]: The government will abuse every power it gets.
[SPEAKER_02]: Even though it wasn't the government, the government had charted the central bank.
[SPEAKER_02]: The minute you had one, it was right for abuse.
[SPEAKER_02]: And that's exactly what happened.
[SPEAKER_02]: Anyway, so the other reason that they wanted to have a central bank was to provide for an elastic money supply, elastic money supply.
[SPEAKER_02]: Now, what does that mean?
[SPEAKER_02]: Well, elastic, you know, it's like a rubber band, right?
[SPEAKER_02]: You could stretch it and then, you know, contract it, right?
[SPEAKER_02]: Expans it contracts, elastic money supply.
[SPEAKER_02]: The idea behind the concept of an elastic money supply was a money supply that expanded and contracted with the business cycle.
[SPEAKER_02]: So when the economy was growing and there was more need for credit, the Fed could inject more credit into the economy as it was expanding.
[SPEAKER_02]: And then if the economy turned down and was contracting, the Fed would withdraw that credit.
[SPEAKER_02]: and shrink the money supply.
[SPEAKER_02]: So that over time, the money supply would stay stable.
[SPEAKER_02]: But during those periods of time, where there was a lot of growth, and there was a need for more credit, the Fed could provide it, and then withdraw it as things slow down.
[SPEAKER_02]: And so over time, the supply of the Federal Reserve notes would be relatively constant, right?
[SPEAKER_02]: What do we do today?
[SPEAKER_02]: Do we have an elastic money supply that expands and contracts?
[SPEAKER_02]: No, it only expands.
[SPEAKER_02]: That's all it does.
[SPEAKER_02]: It never contracts.
[SPEAKER_02]: I mean, you've had some brief periods of contraction, but I mean, you can barely see them if you look at it chart, right?
[SPEAKER_02]: It's almost always expanding.
[SPEAKER_02]: But when does the Fed expand the money supply the most?
[SPEAKER_02]: When the economy is weak, when the economy is contracting in recession, they expand the money supply to stimulate the economy.
[SPEAKER_02]: That is the opposite of what the Fed was created to do.
[SPEAKER_02]: It was created to shrink the money supply during a recession.
[SPEAKER_02]: Now of course,
[SPEAKER_02]: everybody on the Fed, including they discussed today, will say that what the Fed is supposed to do when there's a weak economy or recession is stimulate by cutting rates, doing quantitative easing, expanding the mice, so the Fed reserve today is doing the exact opposite of what it was created to do, which is why I'm saying that had they proposed this hair brain scheme
[SPEAKER_02]: they never would have enacted it.
[SPEAKER_02]: So based on the original purpose of the Federal Reserve, I might have even been for it.
[SPEAKER_02]: You know, if it had stayed within those constraints, the problem is it didn't.
[SPEAKER_02]: In fact, one of the big constraints on the Fed,
[SPEAKER_02]: was that the federal reserve was not allowed to own any obligations of the United States government.
[SPEAKER_02]: They weren't allowed to.
[SPEAKER_02]: Defend could not own treasuries.
[SPEAKER_02]: That was in the original act.
[SPEAKER_02]: So you might say, well, then why do they own this huge balance sheet now of US treasuries if the original Federal Reserve act prohibited the Fed from owning treasuries?
[SPEAKER_02]: But that also proves that the Federal Reserve was not created
[SPEAKER_02]: to help finance government debt.
[SPEAKER_02]: In fact, the creators of the Fed specifically did not want the Fed to be used to fund government debt, which is why the prohibition was in there in the first place.
[SPEAKER_02]: Now, as I said, Kamel's nose under the tent.
[SPEAKER_02]: This is why never give the government an inch, because it will take a mile.
[SPEAKER_02]: By 1917, just a few years later, the U.S. gets into World War I, which was the worst mistake we've ever made, as far as wars, as far as I'm concerned.
[SPEAKER_02]: And I don't want to make this podcast about World War I, but had Woodrow Wilson not decided to make the world safe for democracy, which, by the way, was the first time any president referred to us as a democracy.
[SPEAKER_02]: Because before that, all they talked about was Republic and Republican government.
[SPEAKER_02]: But Woodrow Wilson, all of a sudden, said the world need to be safe for democracy.
[SPEAKER_02]: We got in to World War I, a war that we never should have gotten involved in.
[SPEAKER_02]: the British would not have won that war.
[SPEAKER_02]: Now that the Germans wouldn't have won it either, it would have ended.
[SPEAKER_02]: It would have been like a stalemate.
[SPEAKER_02]: And the war would have ended because there would have stayed in power.
[SPEAKER_02]: There would have been no treaty of Versailles.
[SPEAKER_02]: There would have been no war reparations.
[SPEAKER_02]: There wouldn't have been a hyperinflation in Germany.
[SPEAKER_02]: There wouldn't have been all this resentment.
[SPEAKER_02]: There wouldn't have been the rise of the Nazi Party.
[SPEAKER_02]: There wouldn't have been eight off Hitler.
[SPEAKER_02]: There wouldn't have been a Holocaust.
[SPEAKER_02]: There wouldn't have been World War II.
[SPEAKER_02]: None of this would have happened.
[SPEAKER_02]: Had we stayed out of World War I?
[SPEAKER_02]: Now,
[SPEAKER_02]: Obviously, the people that decided to get us involved in World War I had no way of knowing that the consequence would be the Holocaust and World War II and Nazi Germany, of course, they didn't know that.
[SPEAKER_02]: But that's another reason why you bind your own business and stay out of these foreign wars.
[SPEAKER_02]: That's another reason why we should not be involved in Iran because you have no idea what's going to happen as a result.
[SPEAKER_02]: You don't know where all these chips are going to land, right?
[SPEAKER_02]: How the dots are going to get connected.
[SPEAKER_02]: They didn't know that World War I would cause World War II, right?
[SPEAKER_02]: But anyway, that's a podcast in and of itself.
[SPEAKER_02]: And that's probably another thing they don't teach you in history, right?
[SPEAKER_02]: That we're kind of responsible for that.
[SPEAKER_02]: But getting back to defense.
[SPEAKER_02]: how did government pay for wars they borrow money now they just print money now the war starts and the government is like hey we got this central bank let's borrow some money from the central back oh we can't it's illegal so they went back they went back and they amended the federal reserve act to allow
[SPEAKER_02]: The Federal Reserve to own, not to buy direct from the government.
[SPEAKER_02]: They didn't go that far, but they said the Federal Reserve can buy and hold on its balance sheet.
[SPEAKER_02]: Government debt as long as it gets it from the third party, can't buy directly from the government.
[SPEAKER_02]: They didn't want to make it that obvious, but they can do open market operations.
[SPEAKER_02]: They can go into the market and they can buy treasuries.
[SPEAKER_02]: That was it.
[SPEAKER_02]: That opened the door.
[SPEAKER_02]: And then there was the floodgate.
[SPEAKER_02]: And that also, that's why Wall Street makes a fortune now.
[SPEAKER_02]: You might think, why doesn't the Federal Reserve just buy the bonds directly from the government?
[SPEAKER_02]: Why do they have to buy them from Goldman Sachs or Morgan Stanley and cut them in for a commission?
[SPEAKER_02]: Because that's the only way legally that they can buy them.
[SPEAKER_02]: They can't go directly to the government.
[SPEAKER_02]: But had the Federal Reserve act never been amended.
[SPEAKER_02]: They could buy them at all.
[SPEAKER_02]: And that's how it should have stayed.
[SPEAKER_02]: uh... but unfortunately uh... uh... they they they changed it and and now now you see the result quantitative eating easing this this massive uh... balance sheet now coincidentally at about the same time they allowed to federal reserve to buy u.s. government debt that's when they passed the debt ceiling
[SPEAKER_02]: because they were thinking, hey, wait a minute, now that we've allowed the Fed to buy US government bonds,
[SPEAKER_02]: Maybe we should put some limit on how much bonds the US government could sell.
[SPEAKER_02]: That's where the concept of the debt ceiling came in.
[SPEAKER_02]: The mistake of the debt ceiling was that it was movable because every time we got to the debt ceiling, they raised it.
[SPEAKER_02]: So it wasn't a real ceiling at all.
[SPEAKER_02]: It was just a farce.
[SPEAKER_02]: But it shows you at least they were worried.
[SPEAKER_02]: But if they were worried, why did they allow them to do it anyway?
[SPEAKER_02]: Well, they allowed it because we were at war.
[SPEAKER_02]: some of the stupidest things that we do happen during war, which is another reason to avoid the war.
[SPEAKER_02]: Do it holding tax.
[SPEAKER_02]: The reason people have taxes taken out of their pay is because of World War II.
[SPEAKER_02]: That's when it was enacted and victory tax.
[SPEAKER_02]: The only reason we even have an income tax is because of the Civil War because that's where they enacted it.
[SPEAKER_02]: They killed it but then they resurrected it.
[SPEAKER_02]: And that's where the concept of global taxation.
[SPEAKER_02]: Nobody knows this.
[SPEAKER_02]: All a place you're going to know this is for the Peter ship show.
[SPEAKER_02]: I don't have a lot of time.
[SPEAKER_02]: But the reason America taxes, your worldwide income, no matter where you live, the reason if you're an American and you go to a place like Panama and you earn money in a nation that has no tax, the reason you have to pay the tax anyway is because when we passed the first income tax, third is civil war.
[SPEAKER_02]: They also passed a draft and people were dodging the draft by going to Canada.
[SPEAKER_02]: And so when we passed the income tax, they wanted to catch the draft Dodgers.
[SPEAKER_02]: They didn't want the draft Dodgers also dodging the income tax.
[SPEAKER_02]: So they made that first income tax during the Civil War applied to Americans no matter where they were.
[SPEAKER_02]: So if you dodged the draft, okay, but you're not dodging the income tax.
[SPEAKER_02]: When they resurrected the income tax in 1913, they used that same thing.
[SPEAKER_02]: That's where they got it.
[SPEAKER_02]: And the first paper money happened during the Civil War.
[SPEAKER_02]: Of course, it was temporary just to finance the war, but then it came back.
[SPEAKER_02]: But anyway, I can't, that's too much of a digression.
[SPEAKER_02]: And I've already half hour in this podcast.
[SPEAKER_02]: And I haven't even gotten a waltz.
[SPEAKER_02]: But anyway, now you have some background on the Fed because none of this stuff came up.
[SPEAKER_02]: today in the wars hearings.
[SPEAKER_02]: And you know, the first thing that they said, look, you know, first you have the chairman, the Republican chairman, the Democratic Chairwoman, you know, they make their speech.
[SPEAKER_02]: And of course, the Republicans use the wars confirmation to blame all the inflation on Biden, which is very disingenuous.
[SPEAKER_02]: Biden inherited a lot of that
[SPEAKER_02]: and Trump is creating plenty of inflation right now.
[SPEAKER_02]: In fact, at one point during the two, two and a half hours, probably the best thing that Orch said is he acknowledged that inflation is not caused by economic growth.
[SPEAKER_02]: He said inflation is caused by government spending too much money and essential banks printing too much money.
[SPEAKER_02]: That's right, 100% right, at least he knows that.
[SPEAKER_02]: But once you understand that, how can you claim that Trump is not responsible for any inflation?
[SPEAKER_02]: We had a massive increase in government spending under Trump and a massive increase in money supply under Trump.
[SPEAKER_02]: Trump's responsible for a lot of inflation and Trump right now is already growing.
[SPEAKER_02]: Government spending more than Biden did and so if the Republicans are going to blame inflation on the deficit spending of Biden.
[SPEAKER_02]: how could they ignore the fact that Trump is spending even more and is going to run even bigger deficits than Biden did.
[SPEAKER_02]: It's not like democratic spending causes inflation, but Republican spending doesn't.
[SPEAKER_02]: It's the same thing.
[SPEAKER_02]: And money supply is already growing.
[SPEAKER_02]: So that, I mean, that pisses me off right when I hear that.
[SPEAKER_02]: Then of course,
[SPEAKER_02]: Elizabeth Warren immediately just lays in to wash. Now some of what she says, you know, she has a point, but a lot of it is sheer hypocrisy because one of the things that she was upset at wash for doing was not cutting rates.
[SPEAKER_02]: are not advocating for rate cuts around the time of the 2008 financial crisis by being too hawkish.
[SPEAKER_02]: But now she's worried he's going to be too much of a dove.
[SPEAKER_02]: In fact, all of these Democrats who are worried that wars is going to just cut interest rates.
[SPEAKER_02]: That's what they always want.
[SPEAKER_02]: They want rate cuts no matter what.
[SPEAKER_02]: Now they're saying, oh, you're not going to be tough enough on inflation.
[SPEAKER_02]: Well, since when do the Democrats give us shit about being tough on inflation?
[SPEAKER_02]: They have always said, this is all BS.
[SPEAKER_02]: This is inflation fighting.
[SPEAKER_02]: It's all about protecting Wall Street.
[SPEAKER_02]: We need rate cuts, consumers need lower interest rates.
[SPEAKER_02]: We need lower mortgage rates.
[SPEAKER_02]: The Democrats have always been in favor of cutting interest rates.
[SPEAKER_02]: That's what they want, but they're only saying this because they know that Trump wants rates to be cut.
[SPEAKER_02]: Which, of course, is true.
[SPEAKER_02]: And, you know, they're trying to accuse him of just being a puppet.
[SPEAKER_02]: She was calling him a sock puppet of Trump.
[SPEAKER_02]: But of course he denied via the millie whenever the Republicans asked him no, I'm not going to do what Trump asks We don't have any quit pro quo.
[SPEAKER_02]: There's no deal Trump has never even asked me to cut rates and even if he asked me I'm not going to Follow him, right?
[SPEAKER_02]: I'm going to do what I believe is right Regardless of what the president says now of course I mean
[SPEAKER_02]: would Trump really be nominating a guy who has a history of being a hawk when a lot of other fed chairs were doves when Trump's primary criticism of Powell is that he's not being dovish enough.
[SPEAKER_02]: So why appoint somebody who has a history of being a hawk when you're problem with policies to dovesh.
[SPEAKER_02]: So it doesn't really pass the smell test that Trump has no idea what this guy is gonna do.
[SPEAKER_02]: And he's just taking a chance.
[SPEAKER_02]: And maybe he's gonna be a bigger hawk than pal.
[SPEAKER_02]: And he says pal's a low IQ, you know, idiot, moron, whatever, don't know what he's doing.
[SPEAKER_02]: Right, he should be slashing interest rates.
[SPEAKER_02]: when when wash when he started to talk right he immediately talks about how he loves the fed you know it's this great institution and you know he really you know he's really excited and he's a public servant and of course you know the guy's super rich and not only a sea rich is wife is even richer he married he married into into a lot of money uh... so he's very wealthy again not that i'm against wealthy guys uh... or wealthy women for that matter
[SPEAKER_02]: But he could afford public service, right?
[SPEAKER_02]: Because he obviously doesn't need any money.
[SPEAKER_02]: It's the SD Lawter family, right?
[SPEAKER_02]: That's the, that's his wife's from that fashion, you know, icon, dynasty, whatever.
[SPEAKER_02]: But anyway, so, but he's talking about how much he loves this great institution.
[SPEAKER_02]: And so that's where he lost me right away.
[SPEAKER_02]: Because it's a lousy institution.
[SPEAKER_02]: It's got a horrible track record.
[SPEAKER_02]: You know, I want a guy that hates the institution and wants to try to rain it in not a guy that thinks it's the greatest thing Go in and he's like so excited
[SPEAKER_02]: Um, you know, at least Alan Greenspad, he was, you know, he was very critical of the Fed before he got appointed.
[SPEAKER_02]: And that was a good thing.
[SPEAKER_02]: Hey, a guy that doesn't like the Fed, maybe maybe, you know, maybe that's good to have a Fed bash or running the Fed, right?
[SPEAKER_02]: But at the guy's talking about how much it's, you know, how great this institution is and how he loves everybody associated with it.
[SPEAKER_02]: You know, I mean, he loses my support right there because I mean, as far as I'm concerned, it's one of the worst things we got.
[SPEAKER_02]: Um, he talks about the dual mandate, which of course is bullshit, but he talked about price stability and he said that he has his own definition of price stability because the way the Fed defines it or most people on the Fed.
[SPEAKER_02]: they define price stability as prices that go up by about 2% a year.
[SPEAKER_02]: And, of course, for the last five years, they've been going up a lot more than that, right?
[SPEAKER_02]: But their definition of stable prices is prices that go up every year by about 2%.
[SPEAKER_02]: If not more.
[SPEAKER_02]: So, warships definition of price stability is prices that go up, but they don't go up by enough.
[SPEAKER_02]: to get anybody to talk about it.
[SPEAKER_02]: So it's not a problem.
[SPEAKER_02]: It's like we could live with it.
[SPEAKER_02]: So his definition of price stability is prices that don't rise by so much that it becomes a big problem.
[SPEAKER_02]: But what's lost in all this redefining of the word price stability is the root
[SPEAKER_02]: Stable, right?
[SPEAKER_02]: Price stability has to do with stable prices.
[SPEAKER_02]: Stable is the word.
[SPEAKER_02]: What does stable mean?
[SPEAKER_02]: Like steady unchanged remains the same.
[SPEAKER_02]: That's stable.
[SPEAKER_02]: If something goes up every year, you don't have stability.
[SPEAKER_02]: Prices are not stable if they always go up.
[SPEAKER_02]: So if the goal of the Fed was stable prices, it meant that prices stayed the same over time.
[SPEAKER_02]: They reinvented stability to mean prices go up every single year.
[SPEAKER_02]: But that's not the mandate.
[SPEAKER_02]: The mandate is not for rising prices, just rising slowly.
[SPEAKER_02]: The mandate is for prices to be stable.
[SPEAKER_02]: They redefined it.
[SPEAKER_02]: Now, of course, stable prices are not the holy grail of economics.
[SPEAKER_02]: What if prices are supposed to go down?
[SPEAKER_02]: Let them go down.
[SPEAKER_02]: Falling prices are better than stable prices.
[SPEAKER_02]: Everybody wants lower prices.
[SPEAKER_02]: I can buy more stuff if prices are lower.
[SPEAKER_02]: businesses, they strive to lower their prices so they can sell more stuff.
[SPEAKER_02]: That's why they have sales.
[SPEAKER_02]: When you have a sale, they don't raise the price.
[SPEAKER_02]: Hey, hurry up and buy.
[SPEAKER_02]: I just jacked up the price.
[SPEAKER_02]: No, the way you get people to hurry up and buy, hey, I cut the price.
[SPEAKER_02]: Oh, great.
[SPEAKER_02]: Let me buy some, right?
[SPEAKER_02]: So everybody benefits from falling prices.
[SPEAKER_02]: So again, I mean, I've talked about this a lot, so I'm not going to keep talking about it now, but it's all bullshit.
[SPEAKER_02]: But again, he still buys into the idea that price stability means that prices aren't stable at all.
[SPEAKER_02]: It means that they just keep going up.
[SPEAKER_02]: Um, so there's that, um, now they kept the Democrats, kept trying to get, um, Walsh to prove that he was independent of Trump by getting him to criticize something.
[SPEAKER_02]: Any refuse.
[SPEAKER_02]: They said to him did Trump lose the 2020 election.
[SPEAKER_02]: he wouldn't answer the question.
[SPEAKER_02]: He was like, well, you certified it.
[SPEAKER_02]: He wouldn't answer the question because obviously he doesn't want to say yes and piss off Donald Trump.
[SPEAKER_02]: So again, that's evidence that he's not going to be independent.
[SPEAKER_02]: He can't even admit that Trump lost at the 2020 election.
[SPEAKER_02]: And if he believes he lost it, then why not say it?
[SPEAKER_02]: You know, because he doesn't want to say that.
[SPEAKER_02]: They talked about how we have a great booming economy, the greatest economy ever, and he was asked, is that true?
[SPEAKER_02]: Do you believe that?
[SPEAKER_02]: Again, he just sidesteped it, wouldn't answer that question, because he doesn't want to say, well, obviously, no, that's not true.
[SPEAKER_02]: Because first of all, Trump is saying we have the greatest economy ever, it's booming.
[SPEAKER_02]: We have inflation that's way above two percent.
[SPEAKER_02]: If we have a great economy and high inflation, we should be hiking rates, not cutting them.
[SPEAKER_02]: Like nobody asks them to explain that dichotomy.
[SPEAKER_02]: What do you think about Trump claiming we have the greatest and strongest economy in the history of the world yet wanting one percent interest rates at the same time?
[SPEAKER_02]: So he wouldn't do that.
[SPEAKER_02]: Somebody asked him a question.
[SPEAKER_02]: name one trump policy that you disagree with or that you think he and he getting yeah he refused to say so he doesn't want to you know obviously he must have thought about trump's economic policies maybe there's a policy it doesn't like he's afraid to say it
[SPEAKER_02]: Now again, maybe that's smart, right?
[SPEAKER_02]: He doesn't want to fall into the trap.
[SPEAKER_02]: But again, it makes it look like he's afraid to criticize Trump because he can't support everything that Trump is doing right there must be something that he disagreed with.
[SPEAKER_02]: Oh, then he thought of something.
[SPEAKER_02]: He said, oh, he said that I look like I came out of central casting and he says, I don't think I, I mean, like, you know, come on, right?
[SPEAKER_02]: Like that, that's nothing, right?
[SPEAKER_02]: He picks something that can't be controversial.
[SPEAKER_02]: Um, what else did they ask him, um, I just remembered, um, what it was now, it was, um, uh, price stability, I don't know.
[SPEAKER_02]: Anyway, I'll, I'll, I'll think of it.
[SPEAKER_02]: Um, oh, yeah.
[SPEAKER_02]: So, somebody
[SPEAKER_02]: if we did that, if we follow Trump's advice, what impact do you think that would have on consumer prices?
[SPEAKER_02]: He refused to answer the question.
[SPEAKER_02]: it's obvious the impact.
[SPEAKER_02]: He already stated it.
[SPEAKER_02]: How would the Federal Reserve go about bringing interest rates down to 1%.
[SPEAKER_02]: There's only one way to do it.
[SPEAKER_02]: They would have to buy up a lot of short-term debt and move the yield curve.
[SPEAKER_02]: They would have to do quantitative easing.
[SPEAKER_02]: They would have to expand the balance sheet.
[SPEAKER_02]: They would have to print it in all the money.
[SPEAKER_02]: That'd be the only way they could do it.
[SPEAKER_02]: Well, by his own definition, that's inflation.
[SPEAKER_02]: That's good to cause prices to go up.
[SPEAKER_02]: Yet he refused to answer the question.
[SPEAKER_02]: He can't even, he's like, well, I don't know.
[SPEAKER_02]: I mean, you can't ask me to hype it that.
[SPEAKER_02]: Yet, of course, of course.
[SPEAKER_02]: So again, he doesn't want to criticize anything that Donald Trump says.
[SPEAKER_02]: Even if he says something is dumb,
[SPEAKER_02]: as we should have interest rates at 1% right now, and you're asking the guy who's going to chair the Federal Reserve.
[SPEAKER_02]: If that's a good idea, and he won't say no, he just like he won't even talk about it.
[SPEAKER_02]: They asked them again about oil prices going up, or about insurance, cost going up, or a number of things that were going up, and he's, you know, are these things
[SPEAKER_02]: And he didn't acknowledge it, but I mean, they're not really inflationary.
[SPEAKER_02]: He didn't do a good job of explaining that some prices can go up, and other prices can go down.
[SPEAKER_02]: And we're talking about the general level of prices, not the specific level of any individual price.
[SPEAKER_02]: Because in there, he's right when they're saying, you know, when they're talking about food inflation or they're talking about, you know, one Senator talked about how homeowners insurance is up a lot in that's inflationary, it's not.
[SPEAKER_02]: I mean, it is a consequence of inflation, perhaps, but all else being equal, if I'm spending more on my insurance, I have to spend less on something else, but he was not able to articulate that.
[SPEAKER_02]: I mean, maybe he knows that, and maybe he didn't even want to try.
[SPEAKER_02]: They did talk about inflation as a tax, and he agreed that inflation was a tax, and they talked about it.
[SPEAKER_02]: to the extent that it related to Biden, and the Biden inflation tax.
[SPEAKER_02]: Well, what about the Trump inflation tax?
[SPEAKER_02]: The reason inflation is a tax is because it's how deficit spending is financed.
[SPEAKER_02]: Well, how is Trump financing his deficit spending?
[SPEAKER_02]: With the same tax, in fact, when Trump's
[SPEAKER_02]: Secretary of the Treasury was asked, how are you going to pay for this war?
[SPEAKER_02]: Are you going to raise taxes?
[SPEAKER_02]: The guy laughed and said it was a stupid question.
[SPEAKER_02]: Why?
[SPEAKER_02]: Because we're going to finance it by creating inflation.
[SPEAKER_02]: We're going to use the inflation tax.
[SPEAKER_02]: That's how we're going to pay for this war.
[SPEAKER_02]: So I hate it.
[SPEAKER_02]: They acknowledge inflation is to tax and somehow only Biden is the one that levied it when Trump has been levying the same tax.
[SPEAKER_02]: Now they did talk about the dollar right he got a question about the dollar and he did say look though once I'm fed chair if you ask me about the dollar I'm not going to talk about it.
[SPEAKER_02]: I'm going to defer to the secretary of the treasury I'm just going to talk about interest rates which again is bullshit.
[SPEAKER_02]: because he's in charge of monetary policy and the last I check the dollar is our money.
[SPEAKER_02]: I mean, think about how ridiculous it is that the guy who's in charge of our monetary policy can't talk about our money.
[SPEAKER_02]: And the idea, if he believes in price stability, what is price stability?
[SPEAKER_02]: It has to do with the purchasing power of our money that he says he can't talk about.
[SPEAKER_02]: So again, the idea that a Fed Chairman can't talk about our money by the way, our money.
[SPEAKER_02]: is not really the dollar.
[SPEAKER_02]: It is the Federal Reserve note.
[SPEAKER_02]: If you take our money, take a $1 bill or $100 bill and look at it, what does it say?
[SPEAKER_02]: Federal Reserve note.
[SPEAKER_02]: That's what's written on the dollar.
[SPEAKER_02]: In fact, it's not actually a dollar.
[SPEAKER_02]: It's the Federal Reserve note.
[SPEAKER_02]: We write the word dollar on the note.
[SPEAKER_02]: But the bill itself doesn't say this dollar.
[SPEAKER_02]: It says this Federal Reserve note.
[SPEAKER_02]: That's what it is.
[SPEAKER_02]: So imagine you're the chairman of the Federal Reserve, and somebody asks you a question about Federal Reserve notes, and you say, I'm all out of talk about Federal Reserve notes.
[SPEAKER_02]: Well, though your notes, their your liabilities, how can you not talk about your own notes?
[SPEAKER_02]: Nobody, other than me, bothers, bothers to question.
[SPEAKER_02]: The idiocy of that statement.
[SPEAKER_02]: The Federal Reserve, the Chairman of the Federal Reserve, can't talk about Federal Reserve Nose.
[SPEAKER_02]: You can't talk about the value of Federal Reserve Nose.
[SPEAKER_02]: You can't talk about the purchasing power of Federal Reserve Nose.
[SPEAKER_02]: Somehow, he's handcuffed, and the only way that can talk about it is the Secretary of the Treasury.
[SPEAKER_02]: Where the hell is that written?
[SPEAKER_02]: You think it says in the Federal Reserve Act that if you ask the Chairman of the Federal Reserve about Federal Reserve Nose, you can't talk about him?
[SPEAKER_02]: Yes, to keep his mouth shut.
[SPEAKER_02]: And say, no, no, no, we can't discuss our notes.
[SPEAKER_02]: Nope, nope, go talk to the director of the treasury.
[SPEAKER_02]: Ask him about our notes.
[SPEAKER_02]: Don't ask me.
[SPEAKER_02]: It is complete ridiculous.
[SPEAKER_02]: But this is what happened because they don't want to be talking about it, because they want the secretary of treasury who can't do anything, right?
[SPEAKER_02]: To just say, we believe in a strong dollar.
[SPEAKER_02]: We have a strong dollar policy.
[SPEAKER_02]: What without the Fed, you have no strong dollar.
[SPEAKER_02]: Only the head is so ridiculous.
[SPEAKER_02]: But he did say,
[SPEAKER_02]: that a strong dollar was good for the Fed, it's good for the country because it helps us achieve our mandate.
[SPEAKER_02]: Yeah, you know, if the dollar is being destroyed, if the dollar is being debased, it makes it impossible for them to achieve their mandate.
[SPEAKER_02]: But there was one guy that asked them, you know, if he's concerned about that.
[SPEAKER_02]: Senator Loomus, of course, who's shilling for the crypto industry, the one group that he was willing to pander to was crypto because where he did give a straight answer.
[SPEAKER_02]: was when he said that under no circumstances, under my watch will we ever have a central bank digital currency, which is exactly what the crypto industry wants because they don't want to compete with a national crypto.
[SPEAKER_02]: They want to have their own crypto and they want to keep the government out of it.
[SPEAKER_02]: And so Walsh was willing to commit on that, right?
[SPEAKER_02]: It's like the only policies he would commit to.
[SPEAKER_02]: So I guess they still have some influence to crypto people, even though the air is coming out of their bubble.
[SPEAKER_02]: You know, I was thinking about talking on today's podcast about what's going on, I was stretched in microstrads.
[SPEAKER_02]: You know, Michael Salar just bought.
[SPEAKER_02]: Two and a half billion more in Bitcoin last week.
[SPEAKER_02]: He's single-handedly prop up the entire market by running this Ponzi scheme called Stretch.
[SPEAKER_02]: Which is, you know, it's a Ponzi within a Ponzi or within a pyramid.
[SPEAKER_02]: I mean, it's amazing that the SEC is letting this guy get away with this Ponzi.
[SPEAKER_02]: But I'm looking at this podcast and it's, you know, I'm 50 minutes into it.
[SPEAKER_02]: So I don't really have enough time to get into this Ponzi.
[SPEAKER_02]: I'll save it for another episode.
[SPEAKER_02]: But this is absolutely ridiculous.
[SPEAKER_02]: The fact that you don't have more people, it's a complete Ponzi financial structure because strategy doesn't make any money.
[SPEAKER_02]: Yet it's paying 11 and a half percent coupon on this preferred.
[SPEAKER_02]: Where does it get the money to pay the coupon by selling more?
[SPEAKER_02]: It doesn't earn the money to pay the yield.
[SPEAKER_02]: It has to sucker in new investors to pay the yield to old investors.
[SPEAKER_02]: The only source of money that Sailor has to pay the old investors is if he cons new investors to give it to them by buying more shares.
[SPEAKER_02]: Now, of course, there is another source, they can start liquidating the Bitcoin, but that would blow the whole thing up.
[SPEAKER_02]: But this thing is one giant Ponzi, it is a complete fraud, how the administration's six back and allows this security fraud.
[SPEAKER_02]: But I tell you what, when they eventually do pull the plug, because legally,
[SPEAKER_02]: Um, sailor can stop paying the preferred whenever he wants.
[SPEAKER_02]: I mean, that's in the fine print, right?
[SPEAKER_02]: They focus on, oh, this is just like a bank account, only better.
[SPEAKER_02]: This is 11.5% risk free yield, but okay, but the risk is you can lose it all.
[SPEAKER_02]: But at some point, when they run out of suckers and the Ponzi scheme collapses,
[SPEAKER_02]: Most Ponzi schemes, that's when you're in a lot of trouble, right?
[SPEAKER_02]: When you run out of suckers, like Bernie made off to it, right?
[SPEAKER_02]: When it gets exposed, or, you know, machine ski, but this Ponzi scheme, when micro strategy runs out of new suckers, all it does is tell the old investors, that's say we're not paying you anymore.
[SPEAKER_02]: Because they don't, strategy doesn't have to pay you anything.
[SPEAKER_02]: It's just gonna keep up the payments
[SPEAKER_02]: But once the new money stops coming in, all he has to do is tell the old money, well, you're, you're as so well, you're the bag holders, and the whole thing goes to zero.
[SPEAKER_02]: The problem is, we got a lot of lawyers in America.
[SPEAKER_02]: And I guarantee you, everybody who's left holding the bag on strategy is gonna sue and they're gonna win.
[SPEAKER_02]: So of all the liabilities that strategy has when this thing blows up and all and they have, you know, all this all this paper coming due, the convertibles and the cash, they're also going to have to deal with all the lawsuits from the people who bought in at the end of the Ponzi and lost all their money when the dividends got got canceled.
[SPEAKER_02]: But anyway, maybe I did talk a little bit about it.
[SPEAKER_02]: I love the debate.
[SPEAKER_02]: Anybody wants to debate me.
[SPEAKER_02]: That stretches a Ponzi.
[SPEAKER_02]: I'm ready to go.
[SPEAKER_02]: You've anybody from the crypto industry.
[SPEAKER_02]: I mean, I know sailor himself will never will never do it.
[SPEAKER_02]: So anyway, a couple more things I want to mention from the hearing.
[SPEAKER_02]: So, Wash was also asked if he agreed with Trump or disagreed.
[SPEAKER_02]: about what's happening with Powell and the lawsuit over the cost of the, you know, the Fed, you know, the building, no comment doesn't want to comment, since he's not a lawyer.
[SPEAKER_02]: Hey, I didn't take a course and law, I mean, come on.
[SPEAKER_02]: I mean, he said the same thing, you know, he said, you know, about Fed independence, about Lisa Cook.
[SPEAKER_02]: He was asked to comment about Lisa Cook.
[SPEAKER_02]: And, you know, do you think it's, does the president have the authority to fire her?
[SPEAKER_02]: And if he can, what will that do about Fedon dependence?
[SPEAKER_02]: Because he mentioned the fact that he thinks Fedon dependence is really, really important.
[SPEAKER_02]: And it's, you know, one of the things he really believes in.
[SPEAKER_02]: So he's asked, well, if the president could just fire, you know, an FOMC member, do you think that is a problem for Fed and dependence?
[SPEAKER_02]: Because, well, you know, I really can't say, you know, it's like, well, what's your opinion?
[SPEAKER_02]: And it goes, well, you know, whatever the Supreme Court decides, you know, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm, I'm
[SPEAKER_02]: I'm not a taking one class on the Constitution, but I didn't take enough classes to really understand it, right, because it's written in Chinese, so who the hell knows what the Constitution means.
[SPEAKER_02]: I can't even answer that question because I'm not a constitutional scholar.
[SPEAKER_02]: I'll just defer to whatever the Supreme Court says.
[SPEAKER_02]: I mean, what bulls shit?
[SPEAKER_02]: You know, but of course, yeah, I know he's probably instructed like the guy's going to get rubber stamped.
[SPEAKER_02]: He's going to get approved because the Republicans control the Senate and the Republicans are scared shitless to do anything anti Trump because, you know, though Trump has lost a lot of his supporters.
[SPEAKER_02]: He has it lost them all.
[SPEAKER_02]: He still has a core group.
[SPEAKER_02]: In fact, I think he's retained more supporters than he's lost, you know, he's lost a lot
[SPEAKER_02]: But Republicans don't give us crap about them.
[SPEAKER_02]: I mean, they need them in the general election.
[SPEAKER_02]: But what most Republicans don't want is a primary.
[SPEAKER_02]: They don't want some other Republican to say, you weren't MAGA enough.
[SPEAKER_02]: They don't want to, you know, they don't want to be the next Thomas Massey.
[SPEAKER_02]: And we'll see, maybe Massey is going to survive.
[SPEAKER_02]: And that will embolden.
[SPEAKER_02]: So my hope, Massey survives.
[SPEAKER_02]: He's the best congressman.
[SPEAKER_02]: In fact, he's the only congressman.
[SPEAKER_02]: I think, no, I don't, I think I don't, no, that was a guy that was running for God.
[SPEAKER_02]: He's the only incumbent that I've been donated personally.
[SPEAKER_02]: Personally, I've donated to Massey's campaign.
[SPEAKER_02]: I'm maxed out.
[SPEAKER_02]: I can probably, I might be able to, there's another cycle.
[SPEAKER_02]: But I gave the individual masks to him.
[SPEAKER_02]: Uh, but I would encourage my audience to donate to, uh, to a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a, a,
[SPEAKER_02]: He's against all the stuff that Trump pretended he was also against, but now he's for.
[SPEAKER_02]: He wants to get rid of Massey because he's one of the only Republicans that has the guts to say, we don't have this money.
[SPEAKER_02]: We can't spend it.
[SPEAKER_02]: We need to cut government spending.
[SPEAKER_02]: Nobody else will say that, but you know, so it's their afraid.
[SPEAKER_02]: No, I think there are worse people than Kevin Warsh, who Trump could have nominated.
[SPEAKER_02]: I mean, that's the most I can say about it, right?
[SPEAKER_02]: I mean, at least the guy understands that economic growth doesn't cause inflation.
[SPEAKER_02]: And apparently, you know, when Elizabeth Warren was grilling the guy about not predicting the 2008 financial crisis, which she didn't predict either, I, of course, did.
[SPEAKER_02]: He at least claimed that he was warning about Fannie and Freddie, maybe he didn't warn about them, which would have been good.
[SPEAKER_02]: I was warning.
[SPEAKER_02]: I said they were going to go bankrupt, and so he maybe he knew they were a problem.
[SPEAKER_02]: And so he probably
[SPEAKER_02]: is not even close to being the worst person that could have the job.
[SPEAKER_02]: He's probably not as bad as yelling.
[SPEAKER_02]: He's probably not as bad as Bernacchi.
[SPEAKER_02]: And maybe he's not as bad as Paul.
[SPEAKER_02]: But not as bad as really bad fed chairman doesn't mean he's going to be a good fed chairman.
[SPEAKER_02]: I wouldn't expect that at all.
[SPEAKER_02]: What I would expect from Kevin Wars is more the same, more the same shit that we've been getting, more reckless money printing, quantitative easing, artificially low interest rates.
[SPEAKER_02]: That's it.
[SPEAKER_02]: That's what we're going to get.
[SPEAKER_02]: And that's bearish for the dollar, that's bullish for gold, that's bullish for the Europe-Pacific asset management strategy.
[SPEAKER_02]: So what you should be doing now in response to these hearings is by yourself, some gold and silver.
[SPEAKER_02]: Gold is back below 4,800, about 4750.
[SPEAKER_02]: uh... sub-35 bucks tonight but it was down a hundred twenty-five dollars during the day so you got a nice tip go to shift uh... goal right now in fact we just launched i should have said this earlier in the program up maybe i'll do next time this shift gold app is live at the app store go and download my app
[SPEAKER_02]: And then you can buy gold and silver right from the app have it delivered right to your door.
[SPEAKER_02]: The T gold app is not ready yet and it's not live on the shift gold app.
[SPEAKER_02]: You can still buy T gold on your desktop on my website.
[SPEAKER_02]: You can buy T gold not on the app yet.
[SPEAKER_02]: I will let you know it's coming.
[SPEAKER_02]: We're still working it out, but I have a lot.
[SPEAKER_02]: that's going to go on later with T gold.
[SPEAKER_02]: But obviously having the app is a key to using gold and silver as a meeting of exchange where you can send and receive payments right from the app in gold and silver and ultimately withdraw your gold in a token.
[SPEAKER_02]: Right all that stuff.
[SPEAKER_02]: That's all by big plans, but right now, go get the app, buy ourselves some gold to silver, and if you want to fund your tea gold account, you've got to do it on the website for now.
[SPEAKER_02]: Silver's up a buck 20, but it was down three bucks today, but it's back below $80, $77, $76, buy some silver, go to your Pacific asset management, you're a pack.com.
[SPEAKER_02]: get into my managed accounts by my mutual funds.
[SPEAKER_02]: All of these funds are designed to benefit, to benefit from a weak dollar from stagflation, all the things that are happening now and that are going to happen worse in the future.
[SPEAKER_02]: that's already factored into these funds.
[SPEAKER_02]: And if I'm right, then these funds should deliver incredible return.
[SPEAKER_02]: So load up on them.
[SPEAKER_02]: And again, don't forget to subscribe to my free newsletter at Chef Sovereign.
[SPEAKER_02]: And
[SPEAKER_02]: If you're a do it yourself or if you need some investment ideas, make sure and get a premium, get a subscription to global strategic assets, and we're really going to be working on our new product for your plan B.
[SPEAKER_02]: for your plan beat.
[SPEAKER_02]: My plan B might be Panama.
[SPEAKER_02]: I kind of let that a little bit out of the back.
[SPEAKER_02]: But we're gonna be talking a lot about things that you could do just in case.
[SPEAKER_02]: You know, things are going to get bad.
[SPEAKER_02]: They could get really bad.
[SPEAKER_02]: And so it's important to have a plan be.
[SPEAKER_02]: And so we're going to be covering a lot of that at Shifsofford.
[SPEAKER_02]: Anyway, that's it for today's podcast.
[SPEAKER_02]: Don't forget like the YouTube video, subscribe, give me a thumbs up, tell your friends, and I'll be back with another podcast.
[SPEAKER_02]: Most likely it'll be the Friday shift gold wrap.
[SPEAKER_02]: I haven't done a shift gold Friday wrap in a couple of weeks.
[SPEAKER_02]: So most likely the next thing I'm going to be doing is the Friday market wrap.
[SPEAKER_02]: So if you're not currently a subscriber to the shift gold YouTube channel, go there right now and subscribe and be on the lookout for the Friday market wrap.
[SPEAKER_02]: Bye for now.