What's up everyone? This is Anthony Pompeo. Know most of you know me as pomp. You're listening to the pump podcast, simply the best podcast out there. Now let's kick this thing off. Max Keiser. So Bitcoin. Oh gee, he's also got a very popular podcast and he's got a brand new book. The book of Max in this conversation, we go through the 10 points that Michael sailor listed as to why Bitcoin has the potential to become a stronger asset. Some of them Max agrees with and some of them, he doesn't. It was a fascinating conversation. I hope that you enjoy it.
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Surely their opinions and do not reflect the opinions of pomp Investments. You should not treat any opinion expressed by pomp or his guests as a specific inducement to make a particular investment or follow a particular strategy. But only, as an expression of his personal opinion, this podcast is for informational purposes. Only ladies and gentlemen, boys and girls. The man, the myth, the legend. Max Keiser is joining us next, mr. Max, how are you? My friend? Oh, Pop, they call him pong.
Mom. Oh, exact PSI for pump? Are you also are you calling in to this show from the United States or from El Salvador?
I'm in El
Salvador. What is going on on the ground? In El Salvador, give us an on-the-ground report from the one and only Max Keiser.
Yes Terror. So as you know, the country May Bitcoin legal tender a year ago and they are experiencing
The benefits and challenges that come with that. The economy is doing very well. They printed a 10% plus GDP gain. They're looking to do that or more. This year tourism is up by a couple of hundred million dollars. They just completed a surfing competition. International surfing competition that attracted people from all over the world of brought in millions of dollars, they've got forward and direct investment coming in in the billions of
dollars. So that's all happening. That's very positive. Now additionally, the government has decided to crack down on gangsters so they have essentially arrested and incarcerated, thousands of gangsters and this also has a very beneficial impact on the economy is estimated that the gangs are extracting about six billion dollars a year and this
An economy in aggregate. I think it's like a 45 or 50 billion dollar economy. It's that's a lot that's a big difference in this economy. It's like, giving everybody a 25 to 30 percent tax break because they're not paying the extortion. For example, you got 5,000 pupusas sellers that those are the the local delicacy that are sold on the street. There's 5,000 of these around the country, they're primarily women and so they would pay up to half of their revenue to this extortionist. It is
Gangs. So now they are being the gangs are being wiped out, so that has a huge knock-on effect, the confidence people have in the economy. See entrepreneurialism is is getting very strong. We have a venture capital fund here, called el zonte Capital, which is investing in local startups. And we got an incubator starting with Jimmy song whose training up some local coders. So there's a lot of talent. Are you want to germinate and feed that local coating Talent? So that's going on and
It's it's all happening. You know, they're having a tremendous tremendously positive, it and impact. Now, people will say that they bought their Bitcoin at a higher price. They've got an unrealized loss on the books. Last I checked it was like maybe 30 or 35 million but you know you got to put that in the context of of what's Happening throughout the economy, right? So without the Bitcoin law, you wouldn't have those hundreds of millions of dollars.
Dollars worth of Tourism boost, you wouldn't have all that investment coming into the country. It's essentially the cost of a rebranding and, you know, in the world of corporate America and Global corporations, the cost of rebranding. A major corporation would be hundreds of billions of dollars, you know, certainly hundreds of millions of dollars. So here you have a rebranding of a country, thanks to this Bitcoin law and they've got an unrealized loss on the books of approximately 35 million but you know, as that that
Be a net gain as Bitcoin continues to March higher so that's what's going
on. So when you start to think about El Salvador, they're creating a Playbook and that Playbook based on many of the metrics that you shared at the beginning of the conversation, seems to be working. How do you take that Playbook and get it in the hands of other countries and are there other types of countries that you think will be the most receptive to this or they developed Nations developing nations certain geographies around the world where you say yes that's where we expect this to
To be adopted next.
Absolutely. So the president here in El Salvador, hosted a get-together of think was 44 Central Bankers from around the world. Mostly the global South this took place just a couple of weeks ago and they all came to El Salvador. They were down in El Zante, they all got a Bitcoin wallet, they're all using their Bitcoin wallet, hyper Bitcoin ization, and then they went back to their respective countries having been orange pill. So the president president who Kelly is orange, pilling Central bankers,
By the score, you know, dozens of them coming to the country and getting orange pill, and then they go back to their respective countries and they carry the message. Obviously we've got the Central African Republic or car has made Bitcoin legal tender. So that's, that's happening in now in Africa and he's aren't filled and the way he talks about Bitcoin is very, very strong. He's got the all that very strong talking points there. So you see it spreading their, but the Playbook is key, you know, Samson Mal.
Now, who left block? Stream recently to join a company here in El Salvador. That he's starting called Jan 3 key. That's the sole business model was Bitcoin as a service as a sovereign solution and now he's going to other countries in this region. Specifically, Guatemala, Honduras, and he is talking to higher-ups and getting them to get on board with making Bitcoin legal tender so that that Playbook. As you as you call, it is is being spread to
Countries, particularly in this region and they, the people that the folks are really receptive because they see the effect that the positive impact aside
here, when you think about the average citizen, what is the path to educating them? On the actual asset on monetary history on economics? Like how do you how far deep down the rabbit hole? Do you think that the average citizen has to go until the light clicks? And they say, oh I get it. Like, this is something that I want. This is something that I need to use.
Use. Well this is you know pop this is the the the always the big question you know because Bitcoin is is is not something that you can pick up over the weekend. You know you really have to think about it for a while and think deeply about it. They know for me what I always talk about first whenever I talk to people is the quality of Bitcoin where it's fun, confiscated oil. So this is really unique and just history we've never had a species the opportunity to have well
F on come on, you know, absolutely unconscious capable and that resonates that really, you know, people like that idea and folks, here, who were unbanked, right? Seventy percent of the country before Bitcoin was unbanked. Now seventy percent of the country is relatively banked as they all have. Now the Cheapo wallet, they have access to bitcoin. So that was a flip, you know, an incredible change and people like that idea the you know, I come up to me, people come up to me all the time in the street and they pick up their show, me their phone, and they go.
I have $20. Yeah. Like I'm like, wow, that's fucking awesome. Dude. And they know that they nobody can take that. You know, this is this is there's it's unconscious capable and this is, they can't be inflated away. It can't be taken from the government. It can't be stolen, it can't be extorted, and this is significant. The other thing is that it's done sensible. So, this is particularly key for remittances, right? So money, going back from forth, from El, Salvador to the US,
This money can go and nobody can stop it. Nobody can can stop that transaction. Stunts, answerable. So those those two key points, I think get into it, people, you know, they're get them over the hump, they're like, well, you know, that sounds good. Let me try, let me download this, let me get, let me get
started. So there's a recent appearance by Michael sailor. He went and he talked with with Bloomberg and he gave 10 steps that he believes will make Bitcoin a stronger acid. I want to go through each one of these 10 kind of get your thoughts in terms of when you
agree with ones, you disagree with or ones that you think that you can elaborate further on the first one is that he says that there's an absence of the no wash trading rule which basically allows people if Bitcoin is purchased at 50,000. It drops in price, you can basically sell it, buy it back, you can book the loss and then continue to hold the same amount of Bitcoin agree. Disagree. Good or bad for Bitcoin.
Yeah, I'm glad you brought this up. I think this is a really interesting because Michael Sailors at an interesting point and is Bitcoin experience.
He's now going through, what anyone who's been in this space for? Like, I've been in there for 11 years, right? Started buying it at a dollar. I've been through three having. So I've been through four maybe five eighty percent of Corrections and so Michael is having his first, you know, big you know, cream pie in the face of volatility everyone experiences with Bitcoin. At some point I think is Basis at microstrategy is thirty thousand, seven hundred and of course, they're down, you know, on paper from that. But so this list
Of things you came up with, to try to address what he, what he says, what he thinks is, could be improved upon now. The wash sale trading rule in my, I would give that, you know, a fairly ambivalent about that. It's like, yeah, that would be kind of nice, but, I mean, he's trying to avoid this hyper trading that's going on people trading without any cost whatsoever into kind of the fastest moving, you know, I'll say shit coin. I don't know, you know, I mean all
Line and there's a tremendous amount of social media where you see hyping of of a meme coin. And so there's no penalty for that mass of mean, coiners out there to just jump into a new one. There's no tax penalty, Etc. So, bringing in a wash sale, rule would theoretically put a buffer between that kind of murmuration is as I call it my pop, you know, if you ever look up in the sky and you see starlings and the Fly,
Lying and they're flying in these, fantastic constellations of birds, and they seemingly just can can go with thousands of birds simultaneously. That's kind of like the altcoin market and all these traders that are hyping on social media and they go from very rapidly from one to the other and they're playing this extraordinary game. And so that's theoretically, what would kind of put a bumper on that activity? So I guess I guess it's ok but what you're, you know, you're opening the door.
Regulation. So that's where I would say put a caution light there.
The next point that he made was that there's 520 unregistered and unregulated, crypto exchanges that offer 20x leverage and his point was that this often leads to unprotected investors, which can lead to massive losses, agree, disagree, and good or bad for Bitcoin.
Well, you know, again, Michael is somewhat of a newbie, you know, it wasn't too long ago, when over there bit Max, you can get 100x, Leverage.
It's so 20x Leverage is moving toward a more sane environment than 100 x. But I mean, obviously again, that kind of Leverage is not consistent with the kind of the guardrails that should be in place for the average retail investor. And so having access to that, it's almost guaranteed, you're going to get wrecked. It really turns platforms like coinbase and others, that they become more.
Casinos. I've called them casinos before, unlicensed casinos. And so it has that element to it where you're, you're really, you know, putting a penny and your gambling on 100 on the 20 x or 30 x. And, as, you know, that type of trading is almost guaranteed a loser. So, I mean, he's right in terms of that kind of existence of, you know, as
a casino operations going on. He's correct again. It opens a door toward Regulators. So that's that would be the
downside. So the next point that he made was this idea that there's 19,000 cryptocurrencies being cross-collateralized and associated with Bitcoin and that currently holds Bitcoin back by comparing it to badly. Managed unregistered Securities. I'm scared to ask you, but agree or disagree. Good or bad for Bitcoin?
Well, this is enough. This is it this is an interesting point. So you know we've been in this for a while
And that these points are not new, you know, Michael is just discovering them because, you know, because this is the learning curve people have but, you know, that the everything that's not Bitcoin. As I've said on your show before would come under the heading of either relatively or absolutely centralized versus Bitcoin which is uniquely decentralized. Additionally, a case can be made applying the Howey test that everything that's not Bitcoin would be an unregistered.
Security right? So and it also brings up out the question about Senator llamas in her bill that she's trying to get through Congress. Talking about applying some regulations to quote unquote crypto and she does two things like she equates aetherium and Bitcoins. You call some both Commodities which I think is false. I mean you can make a case that Bitcoin is a commodity like gold but clearly aetherium is an unregistered Securities without without any doubt whatsoever.
So Gary Gensler over at the SEC, it kind of pushed back against all this and said, hey, lady, you know, stay in your lane. You don't know what you're talking about, which I think is the correct correct response. But when they cross-collateralization issue that he's getting at is really, really the crisis to sure I would say because what we saw is Terra Luna and all these other defy coins that they're manufacturing that yield.
You know, pop from kind of cross collateralizing and putting money to work into other defy coins. And these other defy coins, are generating returns Bike by creating coins out of thin air, the state. I mean, by definition, that's a Ponzi scheme. So a lot of that defy return is just cross collateralizing into new situations that are creating coins out of thin air and rewarding early, you know, coin rewards, Etc. Again unregistered securities.
Tell you that, that that's definitely an issue. And here, I think that this is definitely a regulatory issue where this definitely would require regulatory kind of enforcement. And, and you see this thing's for example, the in with Luna, these guys are definitely getting into big trouble. I think, I believe they're completely prevented from leaving South Korea, they're being held by the police.
So you know, this is, this is definitely an issue. So I think with that, you know, he understands that this is what what's what's what's keeping the lid on bitcoin? At the moment is you've got hundreds of billions of dollars. You've got people like sandbank been freed over at FT acts, who's become a king maker by creating these enormous kind of cross-collateralized market-making unregister. Unregulated situations, where prices go.
We can't take place, you know, this is something that people talked about a couple of years ago they said we'll Bitcoin experience the same problems gold has because there's no good price Discovery and goal because of all the derivatives. And so Wall Street can can really decide what the price of gold should be not the market and what Sailors pointing out is they're seeing this now in Bitcoin, you got derivatives or defy that are making creating price Discovery for Bitcoin and it's and it's blocking
It from, from a more natural price Discovery from taking place. So I think he's got an excellent point there. And this is definitely under the Wheelhouse of the SEC there. There definitely should be enforcing in this case and they're being lacks, and it's unclear why the FCC is being laxed.
So his next point was connected to this, which is this idea of these wildcat banks, the ability for centralized platforms or decentralized in name platforms.
She offer unsustainable yields and kind of gamify or celebrate a lot of these. What a, what is your thoughts? They're good or bad for Bitcoin and do you agree or not?
Well, it's like a tag on to the previous point, right? It's just that he's just emphasizing the same point. You've got these. What he called, wildcat banks, these big platforms and they're interrupting price Discovery, and they're doing. So in a way that's manipulative and fraudulent and it's the perfect opportunity for the, for the
CC to step in and enforce the
rules. And so when you start to think about his next point, he listed ignorance and fear of the asset class as a lack of technical know-how still terrifies many as as media coverage telling of the many supposed deaths of Bitcoin, kind of the the sentiment, the conversation, the lack of information being a problem. What is your thoughts there agree or disagree and good or bad for Bitcoin?
Well, the adoption is definitely tied to understanding Bitcoin and we know that the more you learn about
Find the more of a maximalist to become nobody, who learns about Bitcoin fails to become a maximalist. Only people who really don't take the time to learn about. It are left in the camp of a null pointer or a skeptic. But on this point I think what he's missing is the global nature of Bitcoin. So in the US which has the US dollar and it has a much different culture and the financial markets start a much different place
This is a bigger problem to get through to people who are bombarded with so many things happening in the financial space, on the way, that that's changing. You know, I look at how for example, gambling is become legalized with platforms now that that we didn't really have even a few years ago. But if you look around the world in places like El Salvador, the global style place in Africa that they the need for Bitcoin is so great. That the learning curve is very
Fast. They just get it. There's a need for it and that's we're going to see the growth pop you know Bitcoin is really very much going to be the global South making a move on the global North. You're going to see The Changing of the Guard. The central bank's they Federal Reserve Bank and the bank of England. European Central Bank are going to be usurped. You're going to be overtaken by this Bitcoin Revolution. It's going to come from these other countries. It's not going to be led by the United States. So I would suggest a Michael sailor that he take his message to over season.
Go get, get take your yacht and sail to a countries that were Bitcoin is adopted. And the learning curve is rapid because there's a real need for it. You know, throw America under the bus for now, because they're just mired in too much other stuff these other countries. However, it's where it's happening faster because the need is clear and the asset is performing brilliantly for, you know, these millions of people and soon to be a billion people.
More
he made the point that we don't have a real stable coin yet because there isn't one that is fully regulated and approved agree or disagree and good or bad for Bitcoin.
All right, this I totally disagree with Michael say long because when you're talking about a regulated, stable coin, you're talking about a CBD. See a central bank, digital currency you're talking about USD, see the circle coin, you're talking about a Fed coin. You're talking about a surveillance coin and you're removing one of the
the best aspects of Bitcoin in that, the on-ramp would be outside of the banking system, right? Bitcoin exists outside of the banking system. And it's so when you have a regulated stable coin, you're creating a regulated on-ramp to Bitcoin in defeating the purpose of Bitcoin. So that in that, in this, when this piece that Michael sailor mentions, I completely disagree. And I think it goes against the ethos of Bitcoin. This is something that he and I have talked about before.
I'm 180 degrees in opposition of this
idea. So let me ask a clarifying question here which is regulated. Stable coin is different than stable coin is your thought process that there will be stable coins and people will use them but they just won't be the Central Bank, digital currencies. Or like, how do you think this plays out? Do you think these stable coins, end up all failing and, and nobody adopts them and Bitcoin is kind of the last remaining one
well together is the working great, you know, it's the biggest one out there and
And it they just added the Mexican peso and they added the British pound. They have the US dollar, I believe they have the Euro and it's it works fine. And it works for the unbanked. So the tether model is fine and it will resist being encroached upon by nefarious
regulators.
And so, when you think about that, it's really just the the regulated component versus more of a free market stable. Coin is really where the difference in maybe you and sailors opinion.
Yes, I would say that's
correct. Yeah it it feels like stable coins are going to be a thing but I think the Nuance of free market versus regulated is Up For Debate right? So that that makes sense. His next point was around the absence of a spot ETF in the United States. We also have the Bitcoin features ETF. We have a short bit coin features
DF but still no spot Bitcoin ETF agree or disagree with them here and good or bad for Bitcoin.
Totally agree. It's unconscionable that Gary Gensler on the SEC would allow this to keep going without having a spot ETF in the marketplace and by allowing things like a future Z Bitcoin ETF to exist in the future is based, ETF products are notoriously horrible. They almost never work. And they're not, they're not suitable for a retail or not even suitable for institutions. They're
Not, they're not suitable for anybody and yet somehow these things have gotten into the marketplace. Other countries have spot ETFs their argument that there's no good price Discovery and Bitcoin is fallacious, it's the false and peacefully disproved. And so again you know, when it comes to the SEC it's really hard to understand who they're working for. Are they working for the open and transparent markets on behalf of investors? Or is there some other
Going on. I cannot for the life of me, understand their reasoning behind this. It seems it seems to me to be some element of corruption here going on. Obviously, a lot of people don't want Bitcoin to succeed because it challenges them and the challenges. The banking system, I mean, is that what's going on? Is there a conflict of interest because it makes no, it makes no sense. You know, I'm an expert in this area having invented of
Virtual currency in 1996, a patented virtual currency in Market, making and securities. I mean, I'm one of the foremost experts in this on the world and I've looked at Gary Gensler is reasoning on this and it doesn't add up. And in conjunction with the other decision seemed he's made as we've said, failing to enforce some of these obvious scams. I mean, I really, I really, I really question this guy's Integrity. I really do
bump. When you start to look at the next point that
Sailor makes here he says there's a lack of regulatory guidance and support institutions that currently must overcome. And he also makes points that include the lack of insurance as well as guidance and becoming involved with the space. So it's hitting on a lot of the same points you're talking about here, agree, or disagree. And do you think that more regulatory guidance would be helpful to bitcoin.
It would definitely be helpful for Michael sailor, because as a corporate officer, he has to comply with a lot of regulations.
Ins. And he's also trying to get his other corporate CEO friends involved, and there's a lack of it for them. So from as an asset, as a reserve asset for a corporation, he seeing a paucity of guidance from Regulators that would help him communicate with is stakeholders and investors and to other CEOs and CFOs out there that would, that would be interested. So it
If it would help institutional or corporate adoption for sure. Ultimately, it doesn't matter to bitcoin as such because it does, it's a self-regulating entity. It doesn't need regulation that regulates itself, you know, Bitcoin regulates The Regulators. So it doesn't mean in the long run. It doesn't doesn't mean anything to bitcoin. But for yeah, be great like, for him to be able to on his
10K and 10-q, use refer to something that was written by The Regulators as a to guide the his ship of Bitcoin, you know, that he's trying to put together there. So definitely help
when you start to think about the macro environment right now Bitcoin is down 70%. I think that you have lived through maybe four or five different draw, Downs of 80 plus percent. What is similar to pass Market, draw downs. And what is different about this one?
Compared to those past Market drawdowns.
I think in the past there was a definite lack of liquidity going on. So you know Mount gox was the only exchange around and it was incredibly buggy and wasn't suitable for making markets and so when it started to blow up you had a pretty predictable fall in the price other exchanges that were dominant like bit Max and others were overrun with
Without much thought to concern about hewing to regulatory guidelines. Let's say, I think when sailor first started buying Bitcoin he made the comment that maybe 50 million a day in volume was actual Bitcoin. The rest was washed trading. You know, Bitcoin has had a wash trading problem for years. The, you know, exchanges trading for the in them on their own accounts, to create simulated volume. You see that in the
Market all the time, you know, NASDAQ is a network of dealers, right? It's not like the New York Stock Exchange where you have a specialist at this post, making a market, you have a network. And that NASDAQ is for years, guilty of wash trading amongst themselves to create the painting, the tape, and all these other techniques to create the illusion of volume, and to manufacture prices, and Bitcoin had this problem for years. And so when the sentiment change, you'd have an 80% drawdown because there's just no volume. There was no volume that what's different here is that over the past.
The past. Let's call it. The Michael sailor era of the past several years. The volume has become legitimate and the demand is legitimate and so the markets are legitimate. And but the issue here would be the layering on top of this Market of these derivatives or defy and cross-collateralization. So that's created an obstacle for for good price Discovery. So that that would be the difference but the net effect is the same, you know.
All always, of course, ask me and ask you and ask others for Price predictions and it's it's an incredibly volatile asset. So it really is incredibly difficult to make a price Direction. Other than just that prediction other than to say that what I've been saying for 11 years. I can I'll tell you the direction of Bitcoin. It's up, you know, if you hold it for three or, you know, maybe three and a half years, anyone who's held there for three and a half years or four years is in the black, right? So, if you've got a time frame of, which is not a law,
Long time frame, three and a half four years, you're going to be in the black, but I think that would be the main difference is that also you know, in this environment when I was at the Bitcoin Miami 22 that you know the conference the difference between that conference in the say conference from 10 years ago, I was the quality of the suits, right? So the people on stage are wearing, you know, three thousand dollar suits back, 11 years ago, 10 years ago, people would show up and torn t-shirts and their work. Odors
And you know, rarely get came out of their basement, but it's the same kind of struggle to come to terms with this emerging asset class. And in a lot of ways it's the same. You just have a higher grade of Speculator. You have, of course, the amount of money that's been flooding, the system has increased every year for many years now. I mean, we got the, the central banks have five have decided within the last 6 months to to raise
A rates and really put an end to a 40-year bull market in the bond market. So the on the macro side, this is the first time Bitcoin has faced a rising interest rate environment, which causes on the macro side of a huge shift in the funds. You see, for example, something like the Russian Ruble is the strongest performing currency in the world in 2022, because it's commodity-based, I think
Starting in February with the Russia Ukraine conflict. We saw the end of a 40-year bull market in bonds and financialization and the beginning of a secular inflationary move in global markets that will be tied to Commodities. You know, Commodities were not a big factor for 40 years. It was financialization interest rates extend and pretend just create more bonds, lower lower, you know, the coupon rate extend, the maturity. That's the way the world worked for 40 years. Now we're in
A new world where suddenly the price of stuff like energy and food, it cannot be hidden anymore. It's actually hitting people's bottom line and that's not going to change anytime soon. That's a secular shift in the inflation in the economy in the globe, that's going to be with us for years, not a few months and so that's something that is new for Bitcoin. And ultimately it's going to do well in that environment because as people
Begin to understand that the financialized world is crumbling having us. You know, I've often sty office, a Bitcoin is a risk off investment. It's not a risk on its risk off. This is where you put your safe haven cash. It's hard to make that case. With the volatility of the way it is. When you have something for all the other reasons is on confiscated balloooon, sensible immutable, you know, it makes sense and it makes a lot of sense for a billion or two billion people out there that have been on.
Bank. That's where the growth is going to come. That's where the adoptions happening. So that those are the changes, some some differences, some
similarities. When you think of the macro-environment, the fences are going to continue to raise interest rates. They're going to conduct quantitative tightening, they're going to get a soft Landing inflation. Will come down, everyone calm down, and all will be good in the world. How crazy are they? And how off are they? In their thought process that they can actually get inflation down and not push us into a
recession? You know, it.
As I said, I think this is a kind of a follow-up to what we were just saying there. So the FED is still thinking like the world is similar to the way. It's been for 40 years, you know. Starting with Greenspan, you had the so-called Greenspan put, you know, every time Marcus came down, Greenspan would flood the market with more cash or lower interest rates. And that had the went through, Bernanke, Johnny gal, jpowel, they the activist fed this the model has been with us for 40 years and
That there's no problem that can't be solved by money, printing what happened? In February 24th with Russia Ukraine. Now is that that model is dead and the price determining factor for prices is shifted from the New York fed, or from the FED to the east to Russia, Russia, China, Iran, India, Central America.
South America, Brazil. Those countries are going to be determining prices going forward. And so the in the FED only makes can only operate if the world is on a globalized US dollar standard, but that's no longer the case, you know, on February 26th.
Two days after Russia, Ukraine conflict. The FED sees like 600 billion. I think her million billion in Russian reserves. So we know China looked at that and said, Humane, our reserves aren't saved. So that was a huge, you know, self-owned. You know, that was the, that was one of the stupidest things that anyone could have done. So now,
Rana we're in a new world and I just think Jay Powell and these guys and Janet Yellen their think they haven't adjusted yet but, you know, markets are cruel and you know, and the market price ultimately Works its way into reality and that gas price isn't gone down. You know we're talking ten, eleven twelve, fifteen dollars a gallon for gas in the United States you know in that that doing the math pop, that's not going to
That that's a fundamental shift in they'll in this standard of living for the United States. That's just that's just a fact because we don't have the ability to control these markets and prices anymore because nobody people are dumping the dollar dollars, not going to be World, Reserve currency and the guys with the actual energy, are in control. So how we, how we going to fight that and all the rhetoric coming?
Out of the UK and these other countries seems like people are totally tone deaf to this reality Germany or let's look at another industry. For example, the ESG industry, you know, the climate change industry, the move toward Renewables. Well, you know, that's that's completely blown out of the water Germany, which was heading toward 100% renewable. Is now going back to Cole, like all these countries are going back to Cole now because
Because of what's happening in the energy markets. And so that's that's just a total ship. So I mean, you're a bully, I believe you're a millennial and Pomp and, you know, I think of it as being one of the unluckiest generations ever in history. You know, you kind of grew up to through 911, you've been through the 2008 crisis, the subprime crisis, and now you're going to watch the US dollar lose World. Reserve currency pump. You know, you guys and your brothers are really the, you got you lost the
Should a lottery. I can say
that Max. Well, I agree. It's been tough in the streets. You my friend have gone through all of those things as well. Plus more shit before we were even born. So I agree that there is Generations. That are it almost seems like these crises are happening faster and faster from a timeline perspective and I definitely agree that they don't have as much control as maybe they want to have the big question is going to be how quickly do people understand what's occurring?
And those who don't understand will likely get hurt and those who understand they'll be able to kind of position themselves. So they don't have as much of an impact.
Well yeah, that's the first point you know I started on Wall Street in
1982. I wasn't born yet Max. I
know that was the peak in a vault or took rates up to sixteen Seventeen percent on the 10-year. And so my entire professional career has been spent by watching rates, go down. I've literally had not had to work a day in my life.
It's just been riding this way for 40 years and never make a mistake, just add more dead with a lower coupon and a bigger Longer maturity. It's been great but now that that game is over and but yeah you know the the the the going forward I think that the generational Rifts and all the other societal risk. So you've got what The Economist magazine euphemistically calls cohesion risk
Which is their way of saying, social unrest. So in the u.s., you know, people are already, you know, the tense there's a number of different issues that people are rallying and gathering around. And there is a the cohesion of our society in the United States is fraying and you add in higher costs and down shift and the standard of life and
I'm going to get worse, you know, during the globalization period when America was shipping jobs to China. The quid pro quo, there was that, okay, I'm making less but the stuff I'm buying at Walmart that's made in China, like TVs. And close is so much cheaper that I don't notice that my quality of life is degrading much because even though I'm making less, so I don't even have a job.
Bob the stuff on getting a Walmart is so cheap that I don't see much of a difference. Well, that's completely reversed now. Now, everything coming in is going to be more expensive and your wages are still squeezed. So that it's going to be shocking reversion to the mean, where quality of life and standard of life is going to take a remarkable down shift. And I, you know, people are people don't like that and they're going to be there's going to be more unrest, they know I don't want to be in like
Monger. But how can it not be historically any every time you have that kind of looting going on at the top? And let's be honest that's what that's the way you gotta refer to it. What it is? We the ability to through the practices of a cantillon effect where you're printing trillions of dollars in keeping a thousand dollars for a banker and giving it one dollar to the plebs that process was going to eventually lead to a huge
Age social dislocation and that's that's what we're on the doorstep right now and there's no way you can't print your way out of this. This is the problem. You cannot print your way out of this. If most of the world's actual population, not by GDP, but by headcount is against you, right? That axis of China Russia, India Central Latin America, South Africa, that that population is greater in number than the ones that are supporting the US.
It's current trials and tribulations, you've got a global split here, you've got a domestic split. The leadership is lacking because I don't, you know, I don't want to get into a, you know, a pissing match, you know, and just throw the president under the bus. But I mean clearly it's not the finest political leader that America has experienced, you know, that we have leading us now and the people on Deck don't appear to be particularly
Ready to embrace this job either. So you have political breakdown, you have societal breakdown, you have an economic breakdown, you know, again people should be buying Bitcoin like their life depended on it because it does,
I could literally talk to you for hours about this stuff. We unfortunately don't have hours though. So one you have to promise me. You're coming back again soon and to where can we send people to find you on the internet lured? More about your new
Show learn about your podcast and learn about what you're doing in El Salvador.
Oh well, you just find me on Twitter and I will definitely shitpost on you and troll you. And you know that's like the nicest
guy on Twitter. What do you mean?
Yeah. I'm like the sweetheart. Yeah, you know. I'm trying to get up to half a million on Twitter after 47 years on Twitter. You know, you and freaking Michael sailor or in the millions, I'm sitting here suck.
In hind tit, you know? How do you guys do it? What's your secret, man? I mean, is it just a good looks?
Now that is 2 got it. Now listen you got to get one of these. I got a suit and tie this suit and tie help defeat the 2018 bear Market. I'm aware it until we defeat this 2022. Bear Market you got a suit jacket on. We got to get you at I like
me. I'm so old pump that I remember when people used to make fun of you because you wore the same jacket and tie on two consecutive interviews and he's going back a few
years and they thought that I had lost the time.
This is the only tie I own and boy. Does it do wonders? You know how easy
it is to pick your suit and tie outside is a good time to shine, get a shined on your shoes and you can conquer the world. This is a mirror Ken. Not America.
Can't, that's it Max. We will see you next time my friend later.
Thanks so much for listening to today's episode. I really hope you guys enjoyed this one. Make sure you're subscribed on Apple Spotify or your favorite podcast player. And if you're looking to try to transition to get a new job in the Bitcoin and crypto industry, we've got you covered head over to Palm scripto course.com we've developed a curriculum with the top teams across the industry. It's a three week, intensive training program with over 50 events. Packed into that three week time, period. Go to Palm scripto, course.com to learn more. And I'll meet you guys for the next.
Dode.
