WEBVTT 1 00:00:07.360 --> 00:00:09.880 Welcome back in to another episode of the XRP Pod. 2 00:00:09.919 --> 00:00:12.800 Today is going to be good because I've got none 3 00:00:12.800 --> 00:00:16.320 other than black Swan Capital on the show, so you 4 00:00:16.320 --> 00:00:18.920 guys can't miss that one. We're recovering everything from the 5 00:00:18.960 --> 00:00:22.160 FED to what's happening in the current market and some 6 00:00:22.239 --> 00:00:23.079 of the. 7 00:00:22.760 --> 00:00:25.559 Strategies that maybe you guys should. 8 00:00:25.320 --> 00:00:27.879 Be looking at playing this out, so be on the 9 00:00:27.879 --> 00:00:30.199 lookout for that. Of course, some of the other things 10 00:00:30.239 --> 00:00:33.200 I want to kind of get into is our sponsor 11 00:00:33.240 --> 00:00:35.920 and you know, one thing that you guys need to 12 00:00:35.960 --> 00:00:38.960 be doing, and I think this is a challenge to everyone, 13 00:00:39.320 --> 00:00:43.640 is how are you playing the markets when we start 14 00:00:43.679 --> 00:00:46.759 to see this volatility. One of the ways, of course, 15 00:00:46.840 --> 00:00:49.719 you can do that is jumping over to okax. It's 16 00:00:49.799 --> 00:00:51.880 very easy to set up over there, and they have 17 00:00:51.960 --> 00:00:54.759 some interesting components right now where you can start to 18 00:00:55.439 --> 00:01:00.359 really benefit both on rewards but also creating kind of 19 00:01:00.359 --> 00:01:04.280 a stack method. And the process is set up your account. 20 00:01:04.760 --> 00:01:07.519 You're gonna get some bonuses, which is an opt into 21 00:01:07.599 --> 00:01:08.879 rl USD matches. 22 00:01:09.519 --> 00:01:11.239 This, of course is a campaign. 23 00:01:10.799 --> 00:01:13.599 That is available for you guys right there on the homepage, 24 00:01:13.599 --> 00:01:16.560 so you can deposit you know, up to one thousand 25 00:01:16.599 --> 00:01:19.000 dollars in there as a new user, and you're gonna 26 00:01:19.000 --> 00:01:21.519 earn like fifty bucks in rl USD. Then you can 27 00:01:21.519 --> 00:01:24.239 get up to five hundred and bitcoin when you complete 28 00:01:24.239 --> 00:01:27.359 all three of these tasks, So stack those rewards, also 29 00:01:27.439 --> 00:01:30.079 stack your crypto whenever you want. You're going to start 30 00:01:30.079 --> 00:01:32.719 to earn up to three and a half percent apy 31 00:01:32.840 --> 00:01:35.920 on rl USD and it's paid out weekly, so that's 32 00:01:35.959 --> 00:01:38.280 kind of a cool feature. And some of the other 33 00:01:38.840 --> 00:01:42.359 things that they are doing right now really gets into 34 00:01:42.400 --> 00:01:45.560 these tier levels. One is the deposit and the trade. 35 00:01:46.159 --> 00:01:47.959 You get a little bit back in bitcoin, a hundred 36 00:01:47.959 --> 00:01:51.079 bucks back in bitcoin, fifty in rl USD, and then 37 00:01:51.280 --> 00:01:53.359 you can go into tier two where you deposit and 38 00:01:53.400 --> 00:01:55.799 trade up to ten k and you get five hundred 39 00:01:56.239 --> 00:01:59.640 back in bitcoin and up to five hundred in rl 40 00:01:59.680 --> 00:02:04.200 us When you get into the big whale categories, five 41 00:02:04.280 --> 00:02:07.439 hundred bucks in bitcoin and that's like up to hundred 42 00:02:07.439 --> 00:02:11.680 thousand on a deposit and up to five thousand in URLUSD. 43 00:02:11.800 --> 00:02:15.479 So some very interesting programs for you guys to jump into. 44 00:02:15.520 --> 00:02:17.840 There's kind of the stack all three to be able 45 00:02:17.840 --> 00:02:20.879 to get into that, all right, So let's go over 46 00:02:21.039 --> 00:02:23.879 quickly and I just want to go into the market 47 00:02:24.319 --> 00:02:26.080 to talk a little bit here before I bring on 48 00:02:26.199 --> 00:02:29.639 Versuona Vendel. As you can see, we're on the XRP chart, 49 00:02:29.879 --> 00:02:32.120 big dip yesterday. I think some of this has been 50 00:02:32.360 --> 00:02:36.879 because of the macroeconomics, but also clarity pretty much got 51 00:02:37.000 --> 00:02:40.560 rug pulled, and that is a problem, I think, guys, 52 00:02:40.639 --> 00:02:44.159 as we start to see the future of what's going 53 00:02:44.199 --> 00:02:46.520 to be happening here, at least in the near term, 54 00:02:46.680 --> 00:02:49.080 so be on the lookout for the market to be 55 00:02:49.159 --> 00:02:53.159 much more volatile, especially around what could be happening with 56 00:02:53.199 --> 00:02:56.599 the Big three, which is going to be ETHEREUM, XRP, Slana, Stellar, 57 00:02:56.680 --> 00:02:59.840 some of those that, of course could see a big issue. 58 00:03:00.000 --> 00:03:02.719 I want to bring on the guys from Black Swan Capitalists, 59 00:03:02.719 --> 00:03:04.639 and you've seen them on the show here before. 60 00:03:04.680 --> 00:03:05.599 I'll bring them both, the. 61 00:03:07.080 --> 00:03:11.000 Guys and there we go. All right, versau Vendel, how are. 62 00:03:10.919 --> 00:03:13.039 You, good morning, doing very well. 63 00:03:13.080 --> 00:03:14.360 Thank you, Nice to see you. 64 00:03:14.400 --> 00:03:16.439 Both doing good. Good to see you too. 65 00:03:16.840 --> 00:03:19.120 So a lot happening is you guys, got a chance 66 00:03:19.159 --> 00:03:23.159 to see some pretty crazy things in the market in general. 67 00:03:23.919 --> 00:03:24.879 When you compare. 68 00:03:25.280 --> 00:03:27.479 I want to kind of lead off with the Fed decision, 69 00:03:27.520 --> 00:03:30.280 because this is one that I know you guys have 70 00:03:30.360 --> 00:03:32.840 been talking about this for a little bit, But when 71 00:03:32.879 --> 00:03:36.879 you look at the current possibility of a FED decision 72 00:03:36.919 --> 00:03:40.599 at least in July, it looks as though we're going 73 00:03:40.680 --> 00:03:41.280 to get a hold. 74 00:03:41.319 --> 00:03:44.280 But Vendell, let's start with you. What do you think. 75 00:03:44.560 --> 00:03:45.840 Do you think we're going to be on a hold 76 00:03:45.879 --> 00:03:47.000 here or do you think this is going to be 77 00:03:47.000 --> 00:03:47.639 a little longer. 78 00:03:48.680 --> 00:03:50.199 Yeah, I think it's going to be on a hold, 79 00:03:51.319 --> 00:03:54.639 but that doesn't change the long term destination based on 80 00:03:54.680 --> 00:03:58.159 where we are in the monetary cycle at the moment. 81 00:03:58.719 --> 00:04:00.840 So the only reason I think they're not going to 82 00:04:01.000 --> 00:04:04.159 hike rates, even though most of the a large percentage 83 00:04:04.159 --> 00:04:07.560 of the market is leaning in the odds of i'd say, 84 00:04:07.599 --> 00:04:12.080 what thirty seven percent, Yeah, probability that they will hike rates, 85 00:04:12.319 --> 00:04:16.319 I don't think they will is simply because the ten 86 00:04:16.399 --> 00:04:20.839 year and the two year yield in aggregate dictate essentially 87 00:04:20.879 --> 00:04:26.040 whether the Fed hikes, pauses or cut rates, and the 88 00:04:26.160 --> 00:04:30.000 tenure in the two year yield is it's basically what 89 00:04:30.079 --> 00:04:31.839 currently leads the Fed's decision. 90 00:04:32.000 --> 00:04:35.519 Okay, most people think it's you know, inflation. 91 00:04:35.399 --> 00:04:39.839 Or this, or that those are those are important metrics, 92 00:04:39.879 --> 00:04:43.399 even though they're somewhat flawed to some extent and manipulated, 93 00:04:43.439 --> 00:04:48.240 but that's not what dictates monetary policy, especially interest rates. 94 00:04:48.279 --> 00:04:50.560 The Fed funds rates right, it's the ten year in 95 00:04:50.600 --> 00:04:55.319 the two year yield, So when that starts shooting up aggressively, 96 00:04:55.920 --> 00:05:01.279 that's typically when you'll see rate pauses or rate hikes. 97 00:05:01.399 --> 00:05:05.120 In that instance, that's typically what they follow. And if 98 00:05:05.160 --> 00:05:08.079 it goes the opposite direction, which is lower, that's when 99 00:05:08.160 --> 00:05:11.480 the Fed starts reacting and following, and they'll what they'll 100 00:05:11.519 --> 00:05:14.600 do is they'll cut interest rates. So they're following that, 101 00:05:15.279 --> 00:05:19.759 and that's basically what the CME watch tool is. Of course, 102 00:05:19.839 --> 00:05:23.360 they're making their own anticipation based on other information, but 103 00:05:23.839 --> 00:05:26.920 that's largely where a large percentage of that is coming from. 104 00:05:26.959 --> 00:05:30.120 But I don't think it's breaking out high enough for 105 00:05:30.240 --> 00:05:32.920 them to have any reason. And if you just think 106 00:05:32.920 --> 00:05:37.480 about where we are in the cycle, they are not 107 00:05:37.560 --> 00:05:42.000 incentivized to raise rates. Okay, so far, what they've done 108 00:05:42.000 --> 00:05:45.839 if they've kept rates elevated since twenty twenty two for 109 00:05:45.879 --> 00:05:49.279 so long, and the only logical explanation for that is 110 00:05:49.319 --> 00:05:53.079 to put pressure on the system, on the economy for 111 00:05:53.319 --> 00:05:58.839 other nefarious agendas and to ultimately have a reason to 112 00:05:59.399 --> 00:06:03.240 aggressive cut rates later. So essentially they're just buying time 113 00:06:03.279 --> 00:06:05.399 at this point, but there's no reason for them to 114 00:06:05.480 --> 00:06:09.399 high rates. If anything, the most logical path forward is 115 00:06:09.439 --> 00:06:13.439 to hold to buy more time, or to simply begin 116 00:06:13.560 --> 00:06:16.480 the rate cutting cycle, which I think will happen towards 117 00:06:16.639 --> 00:06:18.839 end of the year or early twenty twenty seven. 118 00:06:19.079 --> 00:06:21.959 But okay, so you've got a low percentage here on 119 00:06:22.040 --> 00:06:25.240 July's meeting, but it starts to rise pretty dramatically, as 120 00:06:25.240 --> 00:06:28.279 you guys can see right there as we start to 121 00:06:28.319 --> 00:06:32.839 flow into September and October's meeting. And I guess that's 122 00:06:32.920 --> 00:06:35.560 my question is do you think we actually do get 123 00:06:35.560 --> 00:06:37.079 a rate cut later this year? 124 00:06:37.160 --> 00:06:38.480 You know, Vendel, you want to take it? 125 00:06:39.759 --> 00:06:40.480 Yes, I do. 126 00:06:40.600 --> 00:06:43.560 I you know, it's hard to say exactly when it 127 00:06:43.600 --> 00:06:46.560 will be, but I think the path we're heading on 128 00:06:46.800 --> 00:06:50.519 the path of lease resistance is ultimately to begin the 129 00:06:50.600 --> 00:06:54.160 rate cutting cycle and resume that path. So that's the 130 00:06:54.199 --> 00:06:57.680 direction we're going in. And the reason is simply because 131 00:06:58.199 --> 00:07:02.199 we're facing a debt crisis. Okay, right, that's basically the 132 00:07:02.279 --> 00:07:05.600 elephant in the room. We have, so much debt in 133 00:07:05.680 --> 00:07:09.639 the entire system, roughly three hundred and fifty three trillion 134 00:07:09.680 --> 00:07:13.839 dollars globally speaking. That's corporate that's government debt. But the 135 00:07:13.920 --> 00:07:19.160 government alone has to refinance between eight to ten trillion 136 00:07:19.199 --> 00:07:22.560 dollars alone in treasury debt in twenty twenty six, and 137 00:07:22.600 --> 00:07:26.680 that's just exponentially growing, of course, because the debt is 138 00:07:26.720 --> 00:07:29.639 only growing over time and alongside. 139 00:07:29.040 --> 00:07:29.759 The interest rate. 140 00:07:30.160 --> 00:07:33.519 So when they need to refinance the debt, which is 141 00:07:33.560 --> 00:07:38.079 about to hit this maturity wall, it's very difficult and 142 00:07:38.199 --> 00:07:41.839 expensive to do with elevated interest rates at with where 143 00:07:41.839 --> 00:07:45.480 they currently are today. So in order to refinance ad 144 00:07:45.480 --> 00:07:50.199 debt successfully, which is their main mandate along with preserving 145 00:07:50.240 --> 00:07:53.199 the integrity of the bond market, they are going to 146 00:07:53.240 --> 00:07:56.439 have to lower rates at some point soon. And we've 147 00:07:56.439 --> 00:07:59.439 already went through the rate hike cycle. 148 00:07:59.319 --> 00:08:01.839 Okay, actually started in twenty twenty two. 149 00:08:02.279 --> 00:08:06.480 Now we're leaving that rate cycle and we're transitioning into 150 00:08:06.879 --> 00:08:11.720 a fiscal dominated regime pretty much, with the need to 151 00:08:11.800 --> 00:08:17.240 refinance government debt, the need to fund these government deficits, 152 00:08:17.839 --> 00:08:22.759 and central banks are a slave to the governments pretty much. 153 00:08:22.839 --> 00:08:26.199 So the only path forward is by time as long 154 00:08:26.240 --> 00:08:28.759 as they can, and eventually they're going to have to 155 00:08:28.800 --> 00:08:32.360 cut rates significantly lower than where they are today in 156 00:08:32.480 --> 00:08:36.879 order to refinance that huge debt burden, because if they don't, 157 00:08:36.919 --> 00:08:40.399 what's happening is what has happened every time in the 158 00:08:40.440 --> 00:08:44.600 past throughout history. We're eventually going to get to a 159 00:08:44.639 --> 00:08:50.679 point in time, hit a threshold, a wall, where we'll 160 00:08:50.720 --> 00:08:54.440 have a financial crisis of some sort. And that's essentially 161 00:08:54.480 --> 00:08:57.519 going to be because there isn't enough liquidity in the 162 00:08:57.559 --> 00:08:59.919 system to refinance the debt. 163 00:09:00.200 --> 00:09:01.720 Yeah, And in order to get. 164 00:09:01.600 --> 00:09:04.639 More liquidity into the system, print, you get a print 165 00:09:04.679 --> 00:09:08.399 and in order to do proper QE quantitative easing, not 166 00:09:08.519 --> 00:09:12.759 this stealth QE thing that the whole narrative is surrounding 167 00:09:12.799 --> 00:09:14.679 these days, that this is not q E. 168 00:09:14.840 --> 00:09:16.039 Okay QE. 169 00:09:16.639 --> 00:09:20.440 In order to effectively do that and inject a huge 170 00:09:20.440 --> 00:09:23.879 amount of liquidity into the system, what they need to 171 00:09:23.919 --> 00:09:26.759 do is bring rates much lower than where they are 172 00:09:26.759 --> 00:09:29.200 today in order to do that. That's how they're going 173 00:09:29.240 --> 00:09:32.399 to get more liquidity into the system. And because the 174 00:09:32.440 --> 00:09:38.159 debt burden is so large, you need an equivalent ratio 175 00:09:38.399 --> 00:09:44.120 of liquidity in order to refinance the bulk of that 176 00:09:44.200 --> 00:09:46.679 debt okay, and the debt that's. 177 00:09:46.519 --> 00:09:49.720 An incredible amount of injection of capital just to be 178 00:09:49.720 --> 00:09:50.720 able to maintain that. 179 00:09:50.840 --> 00:09:52.039 So exactly can. 180 00:09:51.960 --> 00:09:55.399 You stand with the whole idea of hyperinflation? What most 181 00:09:55.480 --> 00:09:58.039 likely will come out of this is just more dollar devaluation. 182 00:09:58.080 --> 00:10:01.799 We'll talk about that versus on do you think that 183 00:10:02.000 --> 00:10:04.879 we get a rate cut late this year or do 184 00:10:04.879 --> 00:10:06.000 you think it comes next year? 185 00:10:07.039 --> 00:10:09.320 Well, there's no way the time it But I think 186 00:10:09.320 --> 00:10:11.720 we have to be realistic about the situation. The real 187 00:10:11.759 --> 00:10:15.480 economy is in free fall. Job losses are surging, credit 188 00:10:15.480 --> 00:10:20.080 card delinquencies at all time highs leverages at extremes right now, 189 00:10:20.159 --> 00:10:24.519 people are maxed out, they're broken, and you know, defaulty 190 00:10:24.519 --> 00:10:28.200 get levels that show us that there is a systemic collapse. 191 00:10:28.279 --> 00:10:33.440 Right economic activity is contracting, and I think it's just 192 00:10:33.799 --> 00:10:37.600 you know, more monetary policy is just talk because I 193 00:10:37.639 --> 00:10:41.039 think we have to be mindful that if we look 194 00:10:41.039 --> 00:10:44.360 at the past, like the two thousand and eight financial crisis. 195 00:10:44.200 --> 00:10:45.320 What did they do right? 196 00:10:45.480 --> 00:10:48.840 They did put Q in the motion, but they're just 197 00:10:48.879 --> 00:10:51.320 going to have to print more money. And I think 198 00:10:51.399 --> 00:10:54.679 central banks understand this dynamic perfectly. I think they're prepared 199 00:10:55.039 --> 00:10:57.600 and that's probably why they're buying gold, because they see 200 00:10:57.600 --> 00:11:00.399 what they're going to have to do. And going back 201 00:11:00.440 --> 00:11:03.639 to the emergency crisis of two thousand and eight, the 202 00:11:03.720 --> 00:11:08.240 pandemic shock of twenty twenty, whenever servicing the debt and 203 00:11:08.440 --> 00:11:11.919 the financial system became painful and growth stalled, and that's 204 00:11:11.919 --> 00:11:14.279 what we're seeing today. They had to respond the same 205 00:11:14.320 --> 00:11:17.159 way they did, slash rates to zero or near zero 206 00:11:17.320 --> 00:11:22.120 and unleash a massive money print out. So it's very possible. 207 00:11:22.480 --> 00:11:24.159 I mean, if you look at the yen carry trade, 208 00:11:24.159 --> 00:11:26.279 if you look at some of the other systemic. 209 00:11:25.840 --> 00:11:29.159 Issues going on, there is no other choice. 210 00:11:29.240 --> 00:11:31.159 You know, It's the only tool left they really have 211 00:11:31.240 --> 00:11:35.799 in their toolbox when conventional monetary policy fails. So I 212 00:11:35.840 --> 00:11:38.159 do think they're going to have some sort of emergency 213 00:11:38.200 --> 00:11:40.200 response and they're just going to have to inject all 214 00:11:40.240 --> 00:11:43.679 this money into the financial system. And evidence is clear 215 00:11:44.840 --> 00:11:48.039 pressure is building again right now. So high rates may 216 00:11:48.039 --> 00:11:50.840 feel responsible in the short term, but this is only 217 00:11:51.279 --> 00:11:56.080 temporary short term exactly, and when that breaking point does arrive, 218 00:11:56.159 --> 00:11:58.519 which it will and history shows that it always does, 219 00:11:58.600 --> 00:12:00.840 central banks are going to pivot hard. They're going to 220 00:12:00.879 --> 00:12:03.399 have to cut rates aggressively, and they're going to have 221 00:12:03.440 --> 00:12:07.120 to restart money printing because that's the only data to 222 00:12:07.159 --> 00:12:08.759 stop this economic contraction. 223 00:12:09.399 --> 00:12:11.360 Hey, guys, when you look at okay, so the big 224 00:12:11.399 --> 00:12:14.679 news today was basically we get RUG pulled out of 225 00:12:14.720 --> 00:12:18.320 the Senate again. And what that is in reference to 226 00:12:18.519 --> 00:12:20.919 is the Clarity Act, because this starts to compound on 227 00:12:20.960 --> 00:12:24.039 what's happening not only with the FED, but now just 228 00:12:24.159 --> 00:12:28.360 with the regulatory environment. Word is now that the Senate 229 00:12:28.480 --> 00:12:31.159 is not going to vote on this before the Senate 230 00:12:31.200 --> 00:12:34.600 recess August eighth, that's a major hit to the industry. 231 00:12:35.240 --> 00:12:37.000 We're seeing a little bit of a dip here in 232 00:12:37.120 --> 00:12:40.200 terms of the percentage dropping, even though there is a 233 00:12:40.240 --> 00:12:42.919 still kind of a very thin window that could happen 234 00:12:43.440 --> 00:12:44.320 in September. 235 00:12:44.720 --> 00:12:46.679 How much does this matter, guys? 236 00:12:46.720 --> 00:12:49.240 Does this really matter for the industry? 237 00:12:50.639 --> 00:12:52.720 Bedell? Would you like to go? I mean, I'm happy 238 00:12:52.759 --> 00:12:54.559 to in Okay. 239 00:12:54.759 --> 00:12:58.039 So it all depends on perspective here. So in the 240 00:12:58.159 --> 00:13:02.480 long term, it does matter because essentially what it's doing, 241 00:13:02.519 --> 00:13:05.840 it's removing these barriers and something we saw with the 242 00:13:05.879 --> 00:13:13.480 Telecommunications Act. You remove the walls, you have regulatory clarity institutions, businesses, 243 00:13:13.519 --> 00:13:15.919 they know what they can do, what they can do, 244 00:13:16.320 --> 00:13:22.200 and you have essentially this wall that's removed, and you 245 00:13:22.240 --> 00:13:29.080 can allow for investment in infrastructure, more development, use cases, utility, 246 00:13:29.200 --> 00:13:35.720 and it accelerates the growth and adoption the S curve. 247 00:13:37.559 --> 00:13:40.279 So that's basically what it does. So in the long term, yes, 248 00:13:40.360 --> 00:13:44.519 it's very important, it matters, but to debate whether it's 249 00:13:44.519 --> 00:13:47.320 going to happen or not is kind of silly because 250 00:13:47.360 --> 00:13:50.320 it is going to happen. Just like all innovation and 251 00:13:50.639 --> 00:13:54.879 technological advancements throughout history, they get regulated which means controlled, 252 00:13:55.399 --> 00:13:58.759 and they get adopted and the space grows into something 253 00:13:59.039 --> 00:14:01.960 even bigger over time. Time that time, By that time 254 00:14:02.080 --> 00:14:04.919 later on in the future, whether it's several years from 255 00:14:05.000 --> 00:14:10.840 now a decade, the return on investment from an investment perspective, 256 00:14:11.279 --> 00:14:14.679 and the opportunity begins to compress as the market matures. 257 00:14:15.919 --> 00:14:19.360 So in the long term it's important for the growth 258 00:14:19.399 --> 00:14:24.720 in the space. However, in the short term it's it's 259 00:14:24.759 --> 00:14:29.720 not important. It's it's basically they could utilize it in 260 00:14:29.759 --> 00:14:34.240 any direction to you know, serve whether it's insiders or 261 00:14:34.440 --> 00:14:39.759 institutions trading it and use that volatility and that narrative 262 00:14:39.879 --> 00:14:44.879 to essentially exit into strength. They could generate hype, they 263 00:14:44.919 --> 00:14:46.960 could dump it, they could short the market down when 264 00:14:47.000 --> 00:14:49.559 that happens. I mean, it's just a narrative in the 265 00:14:49.600 --> 00:14:50.159 short term. 266 00:14:50.200 --> 00:14:51.159 So to. 267 00:14:53.080 --> 00:14:56.960 Follow that very closely and base your investment decisions on 268 00:14:57.039 --> 00:15:00.519 that is not the right path to Yeah, is what 269 00:15:00.559 --> 00:15:04.399 I'm trying to say, because short term it doesn't matter. 270 00:15:04.559 --> 00:15:07.000 You know, it's going to go through at some point, 271 00:15:07.159 --> 00:15:10.919 you know, and to focus too much attention on it 272 00:15:10.960 --> 00:15:16.639 is simply can be somewhat a waste of energy, you know, 273 00:15:16.799 --> 00:15:18.600 because you don't know what's going to happen in the. 274 00:15:18.519 --> 00:15:21.399 Short Yeah, for sure. Well, I think the point that 275 00:15:21.440 --> 00:15:24.360 everybody's been looking at is that if this doesn't get done, 276 00:15:24.399 --> 00:15:27.960 does it give one the Democrats the potential to kind 277 00:15:27.960 --> 00:15:31.840 of run a muck with regulation and rulemaking down the 278 00:15:31.960 --> 00:15:34.720 road if in fact, we start to see a split 279 00:15:34.799 --> 00:15:38.679 Senate in House and or you know, a challenge in 280 00:15:38.759 --> 00:15:41.360 twenty twenty eight for the presidency. Who knows what's going 281 00:15:41.440 --> 00:15:44.440 to go on there. So I think this is still Listen, 282 00:15:44.519 --> 00:15:46.080 a lot of things are going to be playing out 283 00:15:46.480 --> 00:15:49.600 in the short term. I wanted to run in something 284 00:15:49.639 --> 00:15:51.759 past you guys, because this was data point that I 285 00:15:51.799 --> 00:15:55.759 had seen in reference. We were researching this around corporate 286 00:15:55.799 --> 00:15:57.080 profits because we were. 287 00:15:56.960 --> 00:15:58.480 Looking at YES and P. 288 00:15:58.679 --> 00:16:01.960 But in typical what we've found is that most US 289 00:16:02.039 --> 00:16:07.600 corporations are now coming in in profits that are hitting 290 00:16:07.600 --> 00:16:12.039 a record. It's like fourteen percent of GDP. This is 291 00:16:12.080 --> 00:16:16.120 continuing to rise. This would almost be counterproductive to your 292 00:16:16.240 --> 00:16:21.120 argument Van Dell, is that eventually consumer sentiment is going 293 00:16:21.159 --> 00:16:23.080 to set in and we're going to see this kind 294 00:16:23.080 --> 00:16:25.320 of impact on the market. But all these companies are 295 00:16:25.360 --> 00:16:27.200 still making just record profits. 296 00:16:27.559 --> 00:16:28.559 What do you make of this. 297 00:16:29.320 --> 00:16:32.399 Well, if everybody is using you know, credit cards and 298 00:16:32.480 --> 00:16:35.159 in debt, then yeah, profits are going to be up, 299 00:16:35.200 --> 00:16:38.039 you know. So it depends on the sector, it depends 300 00:16:38.120 --> 00:16:40.919 on the economy. But ultimately, if you look at the 301 00:16:41.080 --> 00:16:42.600 real economy. 302 00:16:42.039 --> 00:16:46.480 Okay, it's not in such good shape, you know. And 303 00:16:47.480 --> 00:16:48.120 you could see. 304 00:16:47.919 --> 00:16:50.519 That in the labor market, in the job market, which 305 00:16:50.559 --> 00:16:53.879 is a leading indicator actually, and you could see that 306 00:16:54.039 --> 00:16:58.200 in as my brother said, delinquencies. You could see it 307 00:16:58.240 --> 00:17:01.000 in the real world. You know, you actually get more 308 00:17:01.080 --> 00:17:03.840 insight talking to people on the street rather than reading 309 00:17:03.840 --> 00:17:06.480 the Financial Times. If you want to get a sense 310 00:17:06.519 --> 00:17:09.200 of what's happening in the economy and the job market 311 00:17:09.240 --> 00:17:12.839 of course too. And right now, I mean, yeah, earnings 312 00:17:12.839 --> 00:17:17.720 can be up. There's over investment in certain sectors, for example, 313 00:17:18.680 --> 00:17:23.960 a surge in capital investment in AI for example, which 314 00:17:24.000 --> 00:17:29.960 is temporarily keeping this bubble afloat and creating a boom 315 00:17:30.079 --> 00:17:32.200 within the market. And then you have the mag seven 316 00:17:32.920 --> 00:17:35.920 that is lifting up the rest of the market. And 317 00:17:36.279 --> 00:17:41.400 that's what a bubble is. And basically, well we're seeing 318 00:17:41.400 --> 00:17:43.960 the stock market. Stock market is a melt up phase. 319 00:17:44.440 --> 00:17:47.440 This is the blowoff top. It just hasn't blown off 320 00:17:47.480 --> 00:17:50.240 the top exactly, but this is it. Yeah, because this 321 00:17:50.400 --> 00:17:53.279 is not normal. Okay, if you've been around long enough, 322 00:17:53.319 --> 00:17:54.160 and I know you have. 323 00:17:54.839 --> 00:17:55.640 It's not normal. 324 00:17:56.240 --> 00:17:59.240 I don't think it's like any minute now, any minute 325 00:17:59.279 --> 00:17:59.720 we're going to. 326 00:17:59.759 --> 00:18:00.799 We're to start to see this. 327 00:18:01.200 --> 00:18:03.039 Varson, you put out a tweet right here because this 328 00:18:03.160 --> 00:18:06.759 I think is very relevant. That investors keep asking which 329 00:18:06.839 --> 00:18:11.000 asset replaces the dollar? Okay, and you guys can see 330 00:18:11.000 --> 00:18:15.920 a better question is which asset inherence the settlement of. 331 00:18:16.000 --> 00:18:18.240 Half the dollars dual role? 332 00:18:18.599 --> 00:18:21.119 And you look at that, and of course there's a 333 00:18:21.160 --> 00:18:24.400 handful of of of course we know tokens that could 334 00:18:24.559 --> 00:18:28.440 kind of go in this directions and companies. But do 335 00:18:28.480 --> 00:18:31.519 you think it's going to be a broader market or 336 00:18:31.519 --> 00:18:34.039 do you think it is going to narrow in on 337 00:18:35.160 --> 00:18:38.319 major projects like XRP, stellar, et cetera. 338 00:18:38.480 --> 00:18:39.200 Where do you see this? 339 00:18:40.160 --> 00:18:42.640 Well, there are a few things that go into that. 340 00:18:43.039 --> 00:18:46.920 I think central banks, you know, accumulating gold, reclassifying as 341 00:18:46.960 --> 00:18:50.480 Tier one asset collateral. That's very important. You know, every 342 00:18:50.480 --> 00:18:52.400 time we come on the show, we do talk about 343 00:18:52.440 --> 00:18:55.200 this because exactly we're the reference points. We need to 344 00:18:55.240 --> 00:18:58.119 remind ourselves, right, and why are they doing this right? 345 00:18:58.119 --> 00:19:02.079 They're preparing their methodically and deliberately preparing for a monetary 346 00:19:02.119 --> 00:19:06.960 reset that's going to require a stable, credible, universally accepted reference. 347 00:19:06.559 --> 00:19:07.480 Point of value. 348 00:19:08.119 --> 00:19:11.039 So I do think the broader commodity market is consolidating 349 00:19:11.119 --> 00:19:14.440 right now. We have seen gold and silver come down and. 350 00:19:14.359 --> 00:19:15.079 Some other things. 351 00:19:15.079 --> 00:19:17.079 But you know, I think it's going to be a 352 00:19:17.119 --> 00:19:20.039 basket of currencies, a basket of commodities that are going 353 00:19:20.119 --> 00:19:23.480 to be tied. And even in this kind of monetary reset, 354 00:19:23.519 --> 00:19:26.279 you know, trust alone is not enough. You need a 355 00:19:26.319 --> 00:19:30.440 global monetary reset to have the ability to move capital quickly. 356 00:19:30.480 --> 00:19:33.759 Efficiently and across borders, and I think that's where XRP 357 00:19:33.960 --> 00:19:36.279 comes in and plays a very critical role. 358 00:19:37.240 --> 00:19:39.559 I'm looking at I'm looking at the gold chart here. 359 00:19:39.599 --> 00:19:45.200 You mentioned that coming down verson, Okay, so is do 360 00:19:45.240 --> 00:19:47.640 you think four k is kind of the new bottom 361 00:19:47.680 --> 00:19:49.640 for this or do you feel like this could retrace more. 362 00:19:50.359 --> 00:19:51.799 It's possible it could retrace. 363 00:19:52.000 --> 00:19:52.839 I don't really know. 364 00:19:53.559 --> 00:19:56.000 I don't look at technicals as much as my brother does. 365 00:19:56.079 --> 00:19:59.440 But in these larger cycles, gold is really consolidating for 366 00:19:59.480 --> 00:20:02.119 the next life higher and it's anticipating things that we 367 00:20:02.200 --> 00:20:05.119 talked about as far as monetary policy. So it's going 368 00:20:05.160 --> 00:20:07.119 to go higher at some point. 369 00:20:07.200 --> 00:20:07.720 We don't know. 370 00:20:07.960 --> 00:20:11.759 But right now you can see lots of repatriation of 371 00:20:11.799 --> 00:20:15.680 physical gold. You know, they're getting ready for something. So 372 00:20:15.880 --> 00:20:18.720 central banks are responding exactly as you would expect, and 373 00:20:19.039 --> 00:20:23.200 not just central banks, very smart individuals, very wealthy individuals too. 374 00:20:23.319 --> 00:20:24.799 You know, I'm hearing. 375 00:20:24.519 --> 00:20:30.880 More and more gold investors coming out talking about the 376 00:20:30.920 --> 00:20:33.839 purpose of anytime we see a dip like what we 377 00:20:33.920 --> 00:20:35.680 have seen with gold and silver down to four k 378 00:20:35.759 --> 00:20:40.039 on gold, is that this is absolutely the next point 379 00:20:40.039 --> 00:20:41.480 to start another DCA. 380 00:20:42.119 --> 00:20:46.720 You know, you should always you should always be every month. 381 00:20:46.799 --> 00:20:50.880 I think it's prudent for individuals and investors alike to 382 00:20:51.000 --> 00:20:53.880 be putting a little bit of their earnings into precious metals, 383 00:20:53.960 --> 00:20:57.799 something that's real, something that's tangible, something that can't be diluted, 384 00:20:58.039 --> 00:21:01.000 and something that is gradually being re integrated back into 385 00:21:01.039 --> 00:21:04.920 the monetary system. For instance, even silver, which was once 386 00:21:05.079 --> 00:21:08.480 a form of money, which I still think it is. 387 00:21:08.519 --> 00:21:12.119 It has its use cases. Forget the industrial side, but 388 00:21:12.200 --> 00:21:15.480 when you're talking about sovereignty, you know it still is money. 389 00:21:15.599 --> 00:21:18.599 At the same time, Central Bank of Saudi Arabia, central 390 00:21:18.599 --> 00:21:22.359 Bank of Mexico, central Bank of Russia recently in the 391 00:21:22.440 --> 00:21:25.519 last like year or so, created these strategic reserves to 392 00:21:25.559 --> 00:21:29.599 accumulate silver. Right, that's not reported in the US, and 393 00:21:29.680 --> 00:21:33.559 if I'm not mistaken, Trump administration Andy Sheckman shared this 394 00:21:33.640 --> 00:21:37.119 with US as well, where they have this reserve now 395 00:21:37.119 --> 00:21:39.839 for strategic rare earth minerals, but silver was in there 396 00:21:39.880 --> 00:21:40.279 as well. 397 00:21:40.920 --> 00:21:41.799 What do you okay? 398 00:21:41.839 --> 00:21:45.359 So between the two of you, and this isn't financial 399 00:21:45.400 --> 00:21:50.160 advice for anybody that's listening entertainment only, but you're building 400 00:21:50.240 --> 00:21:54.759 a portfolio today, and let's just say you could quantify 401 00:21:54.759 --> 00:21:56.960