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Speaker 1: So just before Zach came on, I got permission from

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his people to chat a bit with him in the

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green room while he was having a champagne and all

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the lobster and side, and so he says to me,

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he said, I'm changing my tune on the market a

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little bit because sometimes things are just too cheap to

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pass up. And that pirked my ears. So I got

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permission from his people to bring him on when he's done.

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He's done, Okay, mister Abraham is done with his lobster.

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We'll talk about this with the help of our free

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speech platform, the Todd Hermer Show dot subseac dot com,

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and of course with God Almighty.

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Speaker 2: But Todd Herman Show is one percent disapproved, but big

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pharma technocrats in tyrone sabrianware from the highd Mountains of

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Free America. Here's the Emerald City, XI Todd Herman.

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Speaker 1: Today is a day the Lord has made, and these

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are the times which God has decided we shall live.

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Zach Abraham, my friend and brother, Chief and vest Officer

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bow were Capital Management Jointis. Zach, thank you for letting

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me talk to your people this morning, and I see

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that you're well taken care of how was the second

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lobster as good as the first?

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Speaker 3: Well, yeah, but I gotta let you know, man, I

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got the private jet warming up on the tarmac right now,

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and my good buddies Elon and Vivic want to consult

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me on Doge. Some issues in DOGE, right, So I

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can only promise you fifteen to twenty minutes. I'm kind

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of a big deal.

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Speaker 1: God man, you really intrigued me. There's a lot of

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things to talk about today. I read this analysis in

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nvidio might be more important to the market than the

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FEDS and jobs data. That's crazy. We saw the nvidio

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dropped on Wednesday. I think it was we got to

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talk about the World Bank and they fear Trump. But

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let's start with this thing you said to me, kind

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of changing your tune a little bit, because there's things

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that are too cheap to pass up. And then you

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said something about the Chinese word for risk. So let

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me just shut my speaking whole and listen with my

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listening and holes.

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Speaker 3: Well, you know, obviously there's you know, there's been a

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lot going on, you know, politically, financially, all that kind

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of stuff that everybody's aware of and that we all know,

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and listen there is it's headlines like that one right

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there that that really boosts my belief in uh in

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where real opportunity lies. And I'm getting to the point

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now where I honestly think and I feel this with

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a very high level of certainty, which I don't usually

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say that, and I don't want to get too specific

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because I again, I never want people going out and

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making investment changes or trades based on what they think,

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you know, I said or did, because I could be

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wrong too. Haven't around plenty of times. Having said all

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that it that statement is true. And yet that is

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also one of the prime reasons why I think this

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is we are going to look back in a not

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too distant period of time and see this as an

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incredible investment opportunity and perhaps even generationally a generationally exceptional

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period of time to invest. And what I mean by

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that is I don't think that really large for the

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entire market. As a matter of fact, I think the

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market is going to produce extremely underwhelming results over the

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next ten years. I don't think it's because any big

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disaster is going to happen. There's always the potential of that.

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I just think that when you look at valuations. If

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you just look at history as a guide, whenever you

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get a market valued this richly, and we've only had

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it valued this richly two other times. This is going

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back to eighteen seventy. That returns are very anemic going forward, right,

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which makes sense. I mean you fast forward at all

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the gains. Right, You've got the third most expensive, third

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most expensive market on one metric, most expensive market another

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nine metrics. So I mean, you know, it's right up

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there with one of the three craziest periods of times

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in market history. And yet the other thing just as

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crazy as all that stuff is. And I think we

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should get it a little bit into crypto and micro Strategy,

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a company that's at the heart of the whole crypto

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movement right now is as crazy as it all is

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on the insane side, meaning just stuff that makes absolutely

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zero sense. People buying because something's going up, not understanding

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or paying attention to the underlying fundamentals. We've talked about

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this before, but I honestly think that we've reached a

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point of and again because I'm saying this, this probably

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isn't true, but I think we've It probably won't play

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out that way, but I think that we've reached a

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point where it literally is time to completely ignore short

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term results and start buying the value that's out there.

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Meaning we had a moment the other day. Now, don't

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get me wrong, man, I would love to sit there

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and be like this never bothers me. I am immune

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to emotions. That's not true. We owned a goal stock

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the other day. It was a very small position, a

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little more speculative, but deeply undervalue, deeply undervalued. And they

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reported earnings. The earnings included a little bit of a

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delay in their underlying you know, process to build out

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of their different properties, and a little bit of margin slippage,

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a little disappointing, but didn't change the long term picture

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of this company at all or how deeply undervalue it was.

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On that news, the stock sold off sixty percent in

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a single session. Okay, so to the point where it

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was trading at about a sixty sixty five percent discount,

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to where the newly hired CEO had just invested millions

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of his own personal money buying the stock, right's and

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a sixty percent surcharge to what's currently going on. And so,

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don't get me wrong, that hurt, and that really made

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a second guess what's going on because we're looking at

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the results, going this doesn't even make sense. Why are

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you selling this off? This thing so deeply undervalued? Right,

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we went back and checked our numbers. And I'm not

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going to give you the name of the company, but

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we went back and checked our numbers. At the time

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when we were looking at this in this past week,

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the stock was trading around sixty cents a share. Okay,

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when we go look at the resources, the confirmed gold

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and silver that this company has in the ground that

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is worth twenty three dollars per share. Oh, twenty three

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dollars per share. The stock's trading at sixty cents. Okay,

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Could it go to forty? Sure, could it go to

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twenty five? Yep? But I think you've reached this time

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where you don't care. And as a matter of fact,

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I think you've reached the time where you cheer for

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it to go lower. Because when people are willing to

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pay a dollar for ten cents, you sell it to

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them until they don't want anymore. Right, if people are

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willing to sell you a dollar for ten centsense, you

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buy it until you cannot buy anymore. Right, Wow, And Look,

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I am not telling you to go load up on

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gold stocks. They're not all the same. I'm not telling

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you that. What I am telling you is this lunacy

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I think has reached a point where you're looking at

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these companies and going the disparity. And here's the thing.

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A lot of these scenarios, the company has their own

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fate in their hands, meaning the stock's been beaten down

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so much. If they cash flow a fraction of what

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they're projecting, they could buy back fifty percent of the

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shares outstanding over the next three years, you know, I like,

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so they could issue special dividends. They're the equivalent of

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fifteen percent.

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Speaker 1: You've you've explained this so well, and I think I

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get it now. And let me take a second here

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and do some we need to do talking of discounts

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and availability. But I want to bring the vidianto this

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because I think I get it now, Zach, and please

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pay off this thing the Chinese word for risk, because

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you said that in the green room in a second.

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Do that in a second. There is a discount that

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I'm telling you right now. It won't last. It can't.

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It's impossible because they'd go broke my friends Matt wade

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see if I'm tracking here, Zach. The insanity of Nvidia,

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which had on Wednesday they dropped. There were some revenue

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forecast disappointments because there's exuberant expectations of this company. Their

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stock price is completely irrational compared to their growth. It's

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a good company. You've said, it's maybe even a great company,

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but the fact that it might well be more important

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to the entire market than the Feds and job data

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shows the level of insanity on these popular stocks that

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everybody's buying because everybody's buying, so more people buy because

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more people buy. Meanwhile, your gold company and companies like

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that can't buy attention, They can't get attention, and so

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we have all these opportunities for those of us who

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are looking at this from the long view saying, are

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you kidding me? I can buy a twenty three dollars

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stock for forty cents and just wait until math makes

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a comeback.

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Speaker 3: Yeah, obviously we can't. You know, nobody can look at

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you and say that that company is ever going to

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trade a twenty three dollars right, we're saying that, you know,

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if you do the map, that part of it, and

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they've got some liabilities and the balance sheet too. But

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I'm illustrating though, like the you know, the unbelievable disconnect

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here between the actual value and the perspective value, you know,

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because there's some forward looking stuff into that twenty three

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dollars per share, but the spread is so wide, right,

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Like you can come up wildly short of that twenty

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three dollars estimate and still make can extra money. You

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know what I'm saying, Like so so and again, none

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of these are guaranteed outcomes. But here's the thing. It's

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not just with the gold companies. You see it all

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over the place. Go look at a company like Google. Okay. Now,

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this isn't nearly as good as an example, and Google

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is not as clean in so many ways. I think

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it's really it's close to the more geopolitical risk in

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a lot of ways. Well it isn't. It isn't. But

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you know, you see pricing anomalies everywhere because of these

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dynamics playing out in markets. Like I said, you go

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look at Google. Well, Google is a company that is

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growing at fifteen percent a year. Let's go compare it

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to Costco. Okay, Google is a company that's growing at

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about fifteen sixteen percent a year. Costco's growing at about

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nine nine and a half. Okay, Google's margins are in

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excess to thirty percent. I believe costcos are right around

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four Okay, at four to six I would say somewhere

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in there, and I might be being generous, but you know,

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they're a retailers. It's not great, not great margins. You

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go look at you know, margins are better. Go look

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at the balance sheet Google's got. You know, Costco's doing well,

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you know, ridiculous amounts of cash on hand. They've got

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a more diversified business. You look at all that. Then

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you go look at so you know, Google growing at

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virtually double the rate, almost double the rate to Costco

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margins that are you know, eight to ten x what

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costcos are. Flip around, look at the valuations. Costco's trading

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at nearly sixty times earnings and Google's at twenty one.

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Speaker 1: Right.

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Speaker 3: So, so again not telling you to go load up

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on Google. What I'm saying is that these are examples

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of what usually if you want to if you want

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to go find out, you want to look through history

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and find out the guys that typically do the best

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put up the best performance numbers in any given cycle. Right,

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it's usually the guys that we're investing the heaviest into

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the most underperforming sectors at the height of the previous bubble.

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Right Why because that's where the values are. It doesn't

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mean that all the things in those categories are going

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to do well what it means. If it's in that category,

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it's probably pretty cheap, right, because it hasn't performed, especially

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that's magnified now in the longest and biggest bull market

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we've ever had in US history. So if you're looking right,

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the number one way to manage money over the last

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fifteen years was throw your money in the Nasdaq and

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just let it ride, right, So passive investing has been

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almost the impossible way to possible form of investing to

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beat in this whole cycle. Okay, well, guess what that creates?

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All kinds of anomalies, which we think is setting up

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the next cycle, which is the inverse, where it's going

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through the indexes and picking out these companies that for

259
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stupid reasons have been completely left behind and rejected. Right,

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how good as the pull passive by everything has been

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over the next ten years, I firmly believe it's going

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to be the inverse that if you want really good

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and excess returns, you need to be able to figure

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out where the value is because that's gonna in my opinion,

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and if history is any guide, that it will turn.

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And when is it turned, it turns when the largest

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amount of people are the most sure that it never

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is going to right, and you're there now, so you

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look at Nvidia like you were asking. Another classic sign

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of this, I think that that headline is one hundred

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percent correct, as crazy as that is. Why because do

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I think it, Let's not confuse it. I don't think

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it's the most importan in stock as it relates to

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the underlying economy, but as it relates to the stock market. Absolutely.

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Reason Number one, You've got a market where the number

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one source of new flows are ETFs passive investments in

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videos the biggest company in the S and P five hundred,

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so it gets the biggest amount of the flows, right,

279
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So if in Vidia keeps going up, that is a

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really big pull on the rest of the market to

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go up. Right. If in video goes down, that is

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a really big anchor pulling the rest of the market down.

283
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The other thing is is what is everybody the most

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excited about? AI? In video is the center point of that, right,

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So if AIS, if in Vidia trips, if in Vidia

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trips by ten percent, the AI sector as a whole

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will probably get hit for thirty would be you know,

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that's that's my guess. I mean, I can obviously I

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can't guarantee that, but yeah, I think that that's one

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hundred percent correct. But again, step back for a second.

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That is precisely why you shouldn't be loading up on

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companies like Nvidia, because that's idiotic, that is irrational. We

293
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are talking about a big business based on math numbers

294
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and cash flows, right, saying that all of these other

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companies are going to lose value because one company that's

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trading an evaluation that would make an aircraft career full

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of drunken sailor's blush, right, Like, that's that's ridiculous, okay,

298
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but it's true. So what does that tell me? Inherily,

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it tells me that this is a market that is

300
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very detached from logic. And what it also tells me

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is that, you know, it's like the little kid, Like

302
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we've used this analogy, a little kid dig it through

303
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the hile a horseman to or right, there's a pony

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in here somewhere, and and.

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Speaker 4: That's that's the way we're looking at it is saying, Look,

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I agree with you, and that's why I am so

307
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excited because when markets become this value and fundamentally blinded,

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you know, for a fact, there are dollars selling for

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ten cents, and that's what we're excited about.

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Speaker 1: You remind me of this. A couple of farmers I

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knew in Utah, and they bought some lands down in Nevada,

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and bit by bit by bit they were selling off

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the land, and bit by bit the casinos were coming

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in and they did this crazy, crazy trade. Is they

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just did this thing where they all they wanted was

316
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bridge rights. That's that's it. Like they sold and they sold,

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and they negotiated and they traded and they brought some

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they bought some bridge rights to bridge this river down

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near Mesquite, Nevada. And lo and behold the casinos. Look

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at these idiots, these buffoons, willing to make this trade

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just for bridge rights. They didn't have their engineers go

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look at the river. They did not look at the

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historical flow of the river. They did not look at

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the overflow of the river. They did not look at

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the historical floods. They did not realize that in terms

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of geological stability, there are two places you can build

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a bridge that's not going to sink. The farmers knew

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this because they had farmed the land forever. Everything else

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here is sand and dirt and mud. There are exactly

330
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two places our tractors didn't sink, exactly two places along

331
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this entire area of river that you could safely build

332
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a highway without doing all sorts of infrastructure build There's

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only one place that we're going to have control of.

334
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We need the second one. One at the front of town,

335
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one at the end of town. This was about forty

336
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years ago when the casinos started to have really good

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business come in. They needed some bridges, so they went back,

338
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started to make the plans to go to the city

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and build the bridges, and they started going to the paperwork.

340
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So the grandkids of those guys got a phone call

341
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about those bridge rights. They saw this when no one

342
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else saw it, and the casinos thought they were going

343
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to come and play with some farmers. Well, they played

344
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with some farmers grandkids who had been to college. One

345
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got turned into a lawyer, one got turned to an MBA.

346
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So they were perfectly happy to lease the bridge rights

347
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to the casinos. And so they've.

348
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Speaker 3: Leased out how much they were releasing them for, Oh,

349
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well enough, whatever they wanted.

350
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Speaker 1: Their lives materially changed. And one of the things they did,

351
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and I questioned the wisdom of this was we get

352
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a whole bunch of free stuff at the casinos. They're

353
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super fun people to go to casinos with because they

354
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don't pay. Yeah, really really interesting. All right, we need

355
00:19:27,799 --> 00:19:30,319
to talk about this company micro strategy. You talked about

356
00:19:30,319 --> 00:19:33,480
this and this has to do with cyber and cyber

357
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coins and bitcoin, and we'll talk about this with Zach Abraham.

358
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Let me tell you this, There are bets being made

359
00:19:39,079 --> 00:19:42,000
all the time. Sometimes they're just you know, investments. My

360
00:19:42,079 --> 00:19:46,759
friend Steve Anderson is the managing partner at Renewed Healthcare. He,

361
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like Zach, has made a career out of analyzing things.

362
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He happens to be a quant so super high level

363
00:19:53,160 --> 00:19:57,279
math guy, and he turned his mathematical analysis towards the markets.

364
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That's how he made his money. He built hedge funds

365
00:20:00,359 --> 00:20:02,400
and that's how he built his money and built his wealth.

366
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He's a smart guy. He is a very friendly man.

367
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He really likes serving people. He gives a bunch of

368
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money to an orphanage because he himself is an orphan

369
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and so he has given a whole bunch of money

370
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to orphanages as in Mexico. Because now he does business

371
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out of Mexico because he got a disease and doctors

372
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told him there's no cure. You know, you're just gonna

373
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bit by bit by bit not be able to do things,

374
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including golf, which is Steve's passion aside from his wife Kelly.

375
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His passion is golf. He got informed that he could

376
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go to the Middle East and get these things called

377
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stem cells from placentas in abilical courts. He's a Christian man.

378
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He doesn't want anything to do with abortion. He got

379
00:20:45,119 --> 00:20:48,119
the stem cells and he learned that you couldn't do

380
00:20:48,200 --> 00:20:50,839
this in America, so he started to do the math.

381
00:20:52,319 --> 00:20:54,680
It made more sense to open the business in Mexico.

382
00:20:55,640 --> 00:20:59,440
Then then Steve the nurturer took over. He's going to

383
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control all the processes. So when they acquire these stem cells,

384
00:21:02,359 --> 00:21:03,920
they check on the health of the women and the

385
00:21:03,960 --> 00:21:07,039
babies throughout the process. They pay for the birth. They

386
00:21:07,119 --> 00:21:09,759
only use stem cells that are the very very best.

387
00:21:09,960 --> 00:21:11,839
I use a strain that has never been touched by

388
00:21:11,880 --> 00:21:15,200
the modified RNA injections. Not ever, and Steve wanted to

389
00:21:15,200 --> 00:21:17,960
control more. So they culture the stem cells so that

390
00:21:18,000 --> 00:21:20,440
they have complete control over them, and they even created

391
00:21:20,599 --> 00:21:23,119
their own They create their own oxygen. They refuse to

392
00:21:23,119 --> 00:21:24,759
bring it in because he doesn't know who's touched it.

393
00:21:25,200 --> 00:21:27,799
He can't confirm it's health for you. If you're being

394
00:21:27,799 --> 00:21:29,759
told you have to have surgery, this is the way

395
00:21:29,799 --> 00:21:31,880
you're going to have to live. Your traumatic brain injury

396
00:21:31,920 --> 00:21:35,680
is too bad. There's nothing we can do. Pause. If

397
00:21:35,680 --> 00:21:39,680
you're being told that you can't golf anymore, pause, call

398
00:21:39,880 --> 00:21:42,359
or actually go to renew dot Healthcare r E n

399
00:21:42,519 --> 00:21:45,279
u E dot Healthcare and they will tell you if

400
00:21:45,279 --> 00:21:48,440
these stem cells can rebuild your body's parts, because that's

401
00:21:48,480 --> 00:21:52,200
what they do. Fast forward Steve and Kelly when they're

402
00:21:52,200 --> 00:21:54,839
down in Mexico. They live on a golf course. Yeah,

403
00:21:54,920 --> 00:21:57,400
he golfs again. It's renewed dot Healthcare are E n

404
00:21:57,559 --> 00:22:01,000
ue dot Healthcare sat kbrams with a chief investment officer

405
00:22:01,000 --> 00:22:06,559
Bulwark Capital Management. Zach, you're talking about this company called

406
00:22:07,000 --> 00:22:09,720
micro Strategy is going around and buying up all the

407
00:22:10,160 --> 00:22:13,200
cyber currencies. At least that seems to be the strategy.

408
00:22:13,240 --> 00:22:14,680
So this seems significant.

409
00:22:16,000 --> 00:22:19,920
Speaker 3: Yeah, I mean, look again, you look back through financial history.

410
00:22:20,000 --> 00:22:23,640
This is yet another classic sign that you expect to

411
00:22:23,640 --> 00:22:28,960
see in bubble environments, which is and I want to

412
00:22:28,960 --> 00:22:30,960
be really clear, guys, But I'm talking about a bubble.

413
00:22:31,400 --> 00:22:35,039
I'm talking about a kind of a unique bubble because

414
00:22:37,119 --> 00:22:39,079
I think in some ways the bubble is so much

415
00:22:39,119 --> 00:22:42,160
more widespread in terms of who's participating in it. Yet

416
00:22:42,200 --> 00:22:45,720
at the same time, the bubble is very selected in

417
00:22:45,839 --> 00:22:48,640
terms of what types of stocks and what types of

418
00:22:48,680 --> 00:22:51,799
things that's involved in. So when I'm talking about this,

419
00:22:51,920 --> 00:22:57,400
I'm not foretelling a giant market crash. I think things

420
00:22:57,440 --> 00:23:00,359
are going to crash, but I also think that saving

421
00:23:00,400 --> 00:23:02,319
grace in this market is that there's so much stuff

422
00:23:02,359 --> 00:23:05,119
that's undervalued. So while a lot of this ridiculous stuff

423
00:23:05,160 --> 00:23:07,680
is getting smoked, I would expect this other stuff to

424
00:23:07,720 --> 00:23:11,240
return back to some somewhere close to intrinsic value. And

425
00:23:11,279 --> 00:23:14,359
so I actually think this process could take This process

426
00:23:14,400 --> 00:23:18,279
could occur without you know, seeing a forty percent market drop.

427
00:23:18,279 --> 00:23:21,680
I don't think it's necessarily like, you know, an apocalyptic thing.

428
00:23:22,039 --> 00:23:24,200
I just think that if you're writing the things that

429
00:23:24,240 --> 00:23:26,920
have worked, including the general market, over the next five

430
00:23:26,960 --> 00:23:30,880
to ten years, I think you're gonna have significantly different

431
00:23:30,920 --> 00:23:33,160
results than you had over the last ten to fifteen years.

432
00:23:34,119 --> 00:23:35,559
And I think you're gonna have a very hard time

433
00:23:35,640 --> 00:23:39,039
keeping up with inflation rates. But micro Strategy would be

434
00:23:39,039 --> 00:23:41,960
another classic example that you'd expect to see, you know,

435
00:23:41,960 --> 00:23:43,839
if you had a checklist of things that you expected

436
00:23:43,880 --> 00:23:46,160
to see in a bubble of some kind, this would

437
00:23:46,160 --> 00:23:48,720
certainly be one of them. What micro Strategy is doing

438
00:23:48,799 --> 00:23:51,960
is it's a relatively small, sort of niche tech player.

439
00:23:52,160 --> 00:23:54,599
I'm not one hundred percent sure and exactly what they do,

440
00:23:54,880 --> 00:23:57,680
but it's it's I believe that they kind of provide

441
00:23:57,720 --> 00:24:02,000
some equipment to like oud based businesses or something like that.

442
00:24:02,039 --> 00:24:05,160
Don't quote me. The underlying business is not impressive at all.

443
00:24:05,519 --> 00:24:07,359
I want to say it does revenue in the neighborhood

444
00:24:07,359 --> 00:24:09,680
of like seven eight hundred million a year, growing at

445
00:24:09,680 --> 00:24:13,599
a very modest rate. Kind of a fine little business,

446
00:24:13,599 --> 00:24:17,319
but kind of a snoozer, right, Well, what the CEO did,

447
00:24:17,640 --> 00:24:20,519
and interestingly enough, the CEO was the CEO of another

448
00:24:20,599 --> 00:24:23,319
company back at the tech bubble in the late nineties

449
00:24:23,680 --> 00:24:26,000
that you know, crashed by ninety some percent and got

450
00:24:26,039 --> 00:24:29,599
obliterated too. So it appears he's going back to the well.

451
00:24:29,680 --> 00:24:33,160
But what he's doing is he is issuing tens of

452
00:24:33,319 --> 00:24:38,160
billions of dollars in convertible debt Okay, So debt that

453
00:24:38,200 --> 00:24:41,920
could be converted to equity, and the debt pays zero

454
00:24:41,960 --> 00:24:46,720
percent interest. Okay, and the reason you're buying it is

455
00:24:46,720 --> 00:24:49,079
because of a convert So it's it's it's. What you're

456
00:24:49,079 --> 00:24:52,599
hoping is that you get an arbitrage where you're able

457
00:24:52,640 --> 00:24:57,960
to convert to an abnormally large size of equity. So

458
00:24:58,880 --> 00:25:01,440
if you buy a convertible that not technically. What you're

459
00:25:01,440 --> 00:25:03,480
hoping is that the company has a big drop in

460
00:25:03,519 --> 00:25:06,720
its equity prices, right, which allows you to convert and

461
00:25:06,759 --> 00:25:08,119
get a big stake of the company.

462
00:25:08,920 --> 00:25:11,519
Speaker 1: Here's your bet. You you're buying a convertible note, you're

463
00:25:11,559 --> 00:25:14,680
loaning the company money, but you have the option to say, actually,

464
00:25:14,799 --> 00:25:16,920
we don't want the interest you were going to give us.

465
00:25:18,079 --> 00:25:21,079
Speaker 3: Well, remember they're not paying interest on these ones. No option.

466
00:25:21,240 --> 00:25:25,000
Speaker 1: Yeah I got that part. But traditionally, convertible debt is

467
00:25:25,039 --> 00:25:28,039
someone loans you the money and you're paying interest, but

468
00:25:28,079 --> 00:25:29,559
they have the option to come along and say, yeah,

469
00:25:29,559 --> 00:25:31,920
we don't want the interest anymore. We want equity, so

470
00:25:31,960 --> 00:25:34,240
we want to turn that debt into equity. But that

471
00:25:34,279 --> 00:25:38,240
traditionally comes with an interest payment and the investor wins

472
00:25:38,240 --> 00:25:40,920
either way, Right, small or big. If the company is

473
00:25:40,960 --> 00:25:43,839
doing super super well, it converts. They get equity that

474
00:25:44,000 --> 00:25:46,519
is now pays them back more money than the interest

475
00:25:46,599 --> 00:25:49,680
would have. But he's doing this with zero interest rates,

476
00:25:49,920 --> 00:25:52,599
zero percent interest rates, and issuing tens of billions of

477
00:25:52,640 --> 00:25:53,119
dollars of this.

478
00:25:53,960 --> 00:25:58,799
Speaker 3: Yeah, yeah, so billions, and so he's yeah, levering up

479
00:25:58,799 --> 00:26:02,279
the balance sheet in an unbelievable way, turning around taking

480
00:26:02,319 --> 00:26:05,799
that money buying a non cash flowing asset. Okay, so

481
00:26:06,400 --> 00:26:09,400
let's stop right there. Okay, I don't care what you

482
00:26:09,440 --> 00:26:14,160
think about bitcoin or any other cryptocurrency. This is an

483
00:26:14,160 --> 00:26:17,160
old movie that's been around, that's been played many times.

484
00:26:17,839 --> 00:26:20,000
When you are levering up a balance sheet to an

485
00:26:20,079 --> 00:26:23,920
ungodly amount to buy a non cash flowing asset, it

486
00:26:24,000 --> 00:26:26,599
is only a matter of time until you get margin cold.

487
00:26:27,160 --> 00:26:31,119
And the reason for that is at some point, especially

488
00:26:31,160 --> 00:26:35,119
if you are buying something that is as volatile as bitcoin. Now,

489
00:26:35,200 --> 00:26:39,119
to Sailor's credit, he rolled the last bitcoin drop down

490
00:26:39,119 --> 00:26:42,240
from sixty some thousand down to fifteen or sixteen thousand,

491
00:26:42,680 --> 00:26:46,680
and he wasn't forced to liquidate yet. But that point

492
00:26:46,680 --> 00:26:49,720
will always get there, and at some point right there

493
00:26:49,759 --> 00:26:55,039
will be a mismatch, meaning he will as an equity holder,

494
00:26:55,440 --> 00:26:59,880
you will have two choices. At some point, bitcoin will

495
00:27:00,079 --> 00:27:04,759
drop well below their average purchasing price right of of

496
00:27:04,759 --> 00:27:07,960
of the of the deal. Because remember they're purchasing the

497
00:27:08,119 --> 00:27:14,559
largest amount dollar amounts as bitcoin goes higher, right, So,

498
00:27:14,559 --> 00:27:18,759
so their dollar costs d averaging, meaning their average cost

499
00:27:18,839 --> 00:27:23,480
for bitcoin is continually rising. Right, Well, so are the liabilities.

500
00:27:23,680 --> 00:27:27,480
So at a certain point bitcoin drops to a certain level. Okay,

501
00:27:28,519 --> 00:27:31,039
they've got to do one of two things. They either

502
00:27:31,079 --> 00:27:34,039
have to pay that debt back or it's got to

503
00:27:34,079 --> 00:27:37,119
convert into equity. Well, as soon as that debt converts

504
00:27:37,119 --> 00:27:40,920
into equity, it's going to trigger all the other equity converts, right,

505
00:27:40,960 --> 00:27:43,160
because they're sitting there going, well, we got to get you,

506
00:27:43,279 --> 00:27:46,519
We got to get in here, right and and and

507
00:27:46,519 --> 00:27:47,480
and swap this thing.

508
00:27:47,519 --> 00:27:47,720
Speaker 2: You know.

509
00:27:48,440 --> 00:27:52,119
Speaker 3: Anyway, what you eventually get to is you've got two

510
00:27:52,319 --> 00:27:55,319
You've got two options as a shareholder of the stock.

511
00:27:56,079 --> 00:27:59,759
Eventually they're going to be either massive forced sellers of

512
00:27:59,799 --> 00:28:03,559
bitcoin or you will get diluted down to nothing. Now,

513
00:28:03,599 --> 00:28:08,920
the irony is this company stock trades in lockstep with bitcoin,

514
00:28:09,559 --> 00:28:14,240
except it moves up on average about four times four

515
00:28:14,319 --> 00:28:17,519
percent for every one percent that bitcoin moves. Now think

516
00:28:17,519 --> 00:28:22,160
about that. That's insanity. You're buying the stock because of

517
00:28:22,240 --> 00:28:27,400
the bitcoin. Okay, but in this case, the bitcoin has

518
00:28:27,440 --> 00:28:30,839
a massive liability attached to it, which is this convertible

519
00:28:30,920 --> 00:28:35,079
debt that is going to convert because the company doesn't

520
00:28:35,079 --> 00:28:37,839
have the cash to pay the debt back, right, it

521
00:28:37,880 --> 00:28:41,839
doesn't pay an interest rate, so it's gonna convert equity

522
00:28:42,160 --> 00:28:45,960
right at some point. Okay, So you're saying that owning

523
00:28:46,160 --> 00:28:50,440
an ever decreasing percentage of a company that owns bitcoin

524
00:28:50,960 --> 00:28:53,279
is better off than owning bitcoin itself.

525
00:28:54,039 --> 00:28:56,559
Speaker 1: This is insane. And you mentioned so that that's the

526
00:28:56,640 --> 00:29:00,000
CEO's an Air Force veteran, so thanks for serving the country.

527
00:29:00,279 --> 00:29:06,440
That's that's that defies explanation. I mean, this is, let's

528
00:29:06,440 --> 00:29:10,519
put this in common human terms. There's a company that

529
00:29:10,640 --> 00:29:14,640
buys up with zero interest rate loans all sorts of

530
00:29:14,680 --> 00:29:18,000
tickets to concerts. So they buy them and it's just

531
00:29:18,079 --> 00:29:19,839
convertible notes and you can buy and you can go

532
00:29:19,880 --> 00:29:23,200
to these concerts. And so time and time and time

533
00:29:23,240 --> 00:29:25,599
again they're buying up these concert seats and you have

534
00:29:25,720 --> 00:29:29,160
this and eventually gonna go these concerts or you could

535
00:29:29,160 --> 00:29:33,400
buy a ticket and go to the concert and pay less,

536
00:29:33,440 --> 00:29:37,200
far less, And this guy's that's a four hundred percent premium.

537
00:29:37,240 --> 00:29:41,160
He's getting two actually just owning bitcoin.

538
00:29:42,119 --> 00:29:46,119
Speaker 3: Yeah, yeah, And it's just it's and that's one of

539
00:29:46,160 --> 00:29:49,519
the problems you have about so much record retail involvement

540
00:29:50,160 --> 00:29:54,079
is that the guy says things. I read this explanation

541
00:29:54,119 --> 00:29:56,559
from a retail investor on Twitter this morning about it,

542
00:29:57,000 --> 00:29:59,640
saying like he finally gets what Michael Saylor is talking

543
00:29:59,680 --> 00:30:02,759
about and why it's worth so much more. And I'm

544
00:30:02,799 --> 00:30:10,200
sitting there going, this is nonsense. You're getting swindled. And look,

545
00:30:10,319 --> 00:30:13,200
it is entirely possible that and I've listened to Michael

546
00:30:13,200 --> 00:30:17,680
Saylor talk. It's entirely possible that he believes it. There's

547
00:30:17,720 --> 00:30:19,359
a part of me that thinks he does believe it.

548
00:30:19,400 --> 00:30:23,559
I don't think he's a swindler per se. I just

549
00:30:23,599 --> 00:30:27,480
think he's incredibly foolish. And I just again, I look

550
00:30:27,480 --> 00:30:29,240
at him, and I'm like, I look at these people,

551
00:30:29,279 --> 00:30:32,240
and I go, guys, look at the structure of this deal.

552
00:30:32,799 --> 00:30:36,680
If you want to own bitcoin, like, you're guaranteed if

553
00:30:36,680 --> 00:30:39,720
you buy the stock here at this price, you're virtually

554
00:30:39,839 --> 00:30:43,799
guaranteed that your ownership percentage is going to get diluted,

555
00:30:44,640 --> 00:30:47,640
and the only asset of size that matters on the

556
00:30:47,640 --> 00:30:51,559
balance sheet is bitcoin. So you've just figured out a

557
00:30:51,599 --> 00:30:54,680
way to negate the one biggest upside of bitcoin, which

558
00:30:54,720 --> 00:30:57,960
is that you can't make any more of it, well, right,

559
00:30:58,319 --> 00:31:01,359
because as you print more of anything, right, the value

560
00:31:01,359 --> 00:31:05,279
of that thing becomes less. Okay, well, how is that

561
00:31:05,319 --> 00:31:07,880
any different than buying a company where you're underlying share

562
00:31:07,880 --> 00:31:11,480
in that company is constantly being diluted. So like, it's

563
00:31:11,559 --> 00:31:14,039
crazy that this is trading at a premium to bitcoin

564
00:31:14,079 --> 00:31:16,000
because the whole idea behind bitcoin is you can't make

565
00:31:16,039 --> 00:31:17,000
any more of it, right.

566
00:31:17,079 --> 00:31:20,079
Speaker 1: Yeah, I just saw this tweet he responded to with

567
00:31:20,160 --> 00:31:24,240
clown faces and laughing faces. Michael Saylor, CEO of this

568
00:31:24,319 --> 00:31:30,599
micro Strategy is the new Warren Buffett. Yeah, this even

569
00:31:30,640 --> 00:31:34,279
I'm listening to this, going, this has to collapse. I mean,

570
00:31:35,079 --> 00:31:39,039
you could have bought ten percent of micro Strategy, and

571
00:31:39,079 --> 00:31:42,279
now it's nine percent and eight percent and seven percent

572
00:31:42,319 --> 00:31:45,559
and six percent. Every single day you are guaranteed to

573
00:31:45,720 --> 00:31:49,759
make less money on your investments. Every single day more

574
00:31:49,759 --> 00:31:52,839
people buy. You could have taken that ten percent you

575
00:31:52,839 --> 00:31:57,720
bought and bought bitcoin and not have this solution ever. Well, yeah,

576
00:31:57,759 --> 00:31:58,920
but this bitcoin could go down.

577
00:31:58,960 --> 00:32:02,680
Speaker 3: But but it's crazy, man. When you tell this to people,

578
00:32:03,359 --> 00:32:06,000
it's a very unique and you know, I talked to

579
00:32:06,039 --> 00:32:07,559
buddies of Une that have been in the industry for

580
00:32:07,559 --> 00:32:10,759
forty years. It's a very unique attitude in this market

581
00:32:10,839 --> 00:32:13,119
where they look at you and they go, oh, you're

582
00:32:13,160 --> 00:32:14,880
just you're just mad that you were in it. And

583
00:32:14,920 --> 00:32:16,799
you're like, what are you talking about? And they're like, well,

584
00:32:17,480 --> 00:32:19,960
you know who cares? You're not right? The stock went up,

585
00:32:20,240 --> 00:32:23,359
so like everybody has this attitude. If the price goes up,

586
00:32:23,400 --> 00:32:27,240
that is reality, right, And it's really bizarre because you've

587
00:32:27,279 --> 00:32:31,079
never had that attitude wholesale and markets like this. Oh right.

588
00:32:31,119 --> 00:32:34,720
Speaker 1: But there's been one time when I was raising money

589
00:32:34,720 --> 00:32:38,160
out a Silicon valley. There was a time and I

590
00:32:38,240 --> 00:32:40,920
saw it. I saw people whose companies had never turned

591
00:32:40,920 --> 00:32:42,720
a profit. They were nowhere near a profit, they were

592
00:32:42,720 --> 00:32:46,160
twenty years away from a profit buying helicopters. I had

593
00:32:46,200 --> 00:32:49,960
dinner with them, and the conversation began. Sitting down with

594
00:32:50,000 --> 00:32:53,599
the CEO of Salon dot Com sitting down to eat dinner, Hey, Michael,

595
00:32:53,599 --> 00:32:54,920
how Are you about a helicopter?

596
00:32:56,039 --> 00:33:00,559
Speaker 3: Yep, yeah, yep. Wow. But I mean, but I remember,

597
00:33:01,160 --> 00:33:04,200
what's so unique about this is that mania lasted about

598
00:33:04,240 --> 00:33:05,359
two and a half three years.

599
00:33:05,839 --> 00:33:06,039
Speaker 2: Right.

600
00:33:06,519 --> 00:33:09,000
Speaker 3: This has been going on, argue arguably for five to

601
00:33:09,079 --> 00:33:09,640
seven years.

602
00:33:09,799 --> 00:33:09,920
Speaker 2: Right.

603
00:33:09,960 --> 00:33:11,759
Speaker 3: I mean it's getting crazier, right.

604
00:33:11,640 --> 00:33:14,400
Speaker 1: But it is. And I'm not saying it's the same thing,

605
00:33:14,960 --> 00:33:17,279
but I'm saying at that time, I am I'm looking

606
00:33:17,359 --> 00:33:19,359
in the eye. And there were people who who would

607
00:33:19,359 --> 00:33:20,519
look you in the eyes say you don't get the

608
00:33:20,559 --> 00:33:24,279
new economy man, like, yeah, I remember things like that.

609
00:33:24,279 --> 00:33:25,680
That's that doesn't happen anymore.

610
00:33:26,160 --> 00:33:28,720
Speaker 3: Remember, Remember it's not about cash flow and earnings, it's

611
00:33:28,759 --> 00:33:29,640
about eyeballs.

612
00:33:30,240 --> 00:33:32,240
Speaker 1: Yes, I got a phone call from a woman I

613
00:33:32,279 --> 00:33:36,839
did business with their and become friends with, and she

614
00:33:36,920 --> 00:33:39,440
lives in San Francisco and we did a lot of

615
00:33:39,440 --> 00:33:44,319
business together. And she called me from San Francisco and

616
00:33:44,359 --> 00:33:46,160
she said, hey, I'm talk to you for a second.

617
00:33:46,440 --> 00:33:48,400
She was just one of those companies where CEOs were

618
00:33:48,400 --> 00:33:52,359
buying helicopters. And I said, hey, what's going on, Leah? Hey,

619
00:33:52,400 --> 00:33:54,720
you know my husband and I bought this house at

620
00:33:54,720 --> 00:33:57,400
hate Ashbury. Oh yeah, on top of on top of

621
00:33:57,440 --> 00:34:00,119
the hate. Oh wow, by the zoo. Yeah, well we've

622
00:34:00,119 --> 00:34:03,000
got a view of both sides. Oh wait, so you're

623
00:34:03,319 --> 00:34:06,240
I mean you're you're up there? Yeah, so we bought

624
00:34:06,240 --> 00:34:12,760
it with stock. I forgot where's your husband? Zd net?

625
00:34:13,280 --> 00:34:14,199
Where are you salon?

626
00:34:17,079 --> 00:34:17,320
Speaker 2: Yeah?

627
00:34:17,400 --> 00:34:23,400
Speaker 1: What's going on? Could you loan of some money? It's funny. Yeah,

628
00:34:23,480 --> 00:34:26,039
they've fit this margin call apparently, you know, we've got

629
00:34:26,039 --> 00:34:29,079
this this this bubble agreement on our mortgage, and they're

630
00:34:29,119 --> 00:34:31,440
just they think our stocks going got back up, so

631
00:34:31,480 --> 00:34:35,239
they they've kind of called the loan. So we've we've

632
00:34:35,280 --> 00:34:36,800
got a little time before we have to make the

633
00:34:36,800 --> 00:34:41,440
bubble payment. Could you loan us some money? How much

634
00:34:41,480 --> 00:34:42,159
you're looking for?

635
00:34:43,159 --> 00:34:43,320
Speaker 2: Oh?

636
00:34:43,400 --> 00:34:45,320
Speaker 3: So they took a hold on, hold on. They didn't

637
00:34:45,360 --> 00:34:47,480
sell their stock to buy the house. They took a

638
00:34:47,599 --> 00:34:50,280
loan out against their stock. Oh, because they I'm sure

639
00:34:50,320 --> 00:34:51,239
it was going to go up more.

640
00:34:52,920 --> 00:34:54,480
Speaker 1: So how much would you guys? You know what we're

641
00:34:54,480 --> 00:35:00,840
looking for? Fifteen to twenty thousand dollars? Leah, how much

642
00:35:00,880 --> 00:35:07,519
time does that buy you? Thirty days a month? You

643
00:35:07,559 --> 00:35:09,559
know what? I'd love to be able to help.

644
00:35:12,000 --> 00:35:14,400
Speaker 3: I'm a good man of money after bad there a month.

645
00:35:15,760 --> 00:35:17,440
Speaker 1: Oh no, no, it's okay. I get it. You know

646
00:35:17,480 --> 00:35:18,960
it's a lot of money. And you know we don't

647
00:35:19,000 --> 00:35:22,519
know what you did that well, and my husband's father

648
00:35:22,639 --> 00:35:27,000
is going to step in and help us this month. Leah,

649
00:35:27,079 --> 00:35:30,320
this isn't going back up. No, No, it'll be good.

650
00:35:30,719 --> 00:35:30,800
Speaker 2: No.

651
00:35:30,960 --> 00:35:33,519
Speaker 1: And this this is the attitude. Then we need to

652
00:35:33,559 --> 00:35:36,440
talk about this now, going from the so called private market.

653
00:35:36,519 --> 00:35:39,280
I guess micro Strategy is private. I VIDI is private.

654
00:35:39,519 --> 00:35:41,199
But I need to run by you some stuff that's

655
00:35:41,239 --> 00:35:43,440
going on with the World Bank, and then just some

656
00:35:44,159 --> 00:35:46,760
kind of political stuff since there was this election and all,

657
00:35:47,119 --> 00:35:48,480
and I want to talk with you about that, some

658
00:35:48,519 --> 00:35:50,800
of the ways we're spending our money as government. Sach

659
00:35:50,880 --> 00:35:54,440
Abrahm's with US chief Investment Officer Board Capital Management. I

660
00:35:54,480 --> 00:35:55,800
don't know if you've done this. Have you bought your

661
00:35:55,840 --> 00:35:57,800
bone frog wine yet from bone Fog Sellers? You said

662
00:35:57,800 --> 00:35:58,440
you're gonna do that?

663
00:35:59,239 --> 00:36:01,760
Speaker 3: No, I need to you know what I'm gonna. I'm gonna.

664
00:36:01,800 --> 00:36:04,079
I'm gonna actually order some for the holidays here. It's

665
00:36:04,079 --> 00:36:05,199
just going to get the wife on that.

666
00:36:05,599 --> 00:36:07,119
Speaker 1: I don't whyt you do that? Have your people do that?

667
00:36:07,400 --> 00:36:10,719
It's Bonefrogsellers dot com slash todd get the twenty fifteen

668
00:36:11,159 --> 00:36:13,480
Marri Low. My friends like them Marlow more than they

669
00:36:13,559 --> 00:36:15,800
like the Cabernet, which surprised them because they're wine people

670
00:36:15,800 --> 00:36:19,119
and apparently Merri Low is ghetto or something. I don't

671
00:36:19,159 --> 00:36:21,360
think so I don't drink wine, but what I know

672
00:36:22,119 --> 00:36:24,400
so my friends, who are big wine snobs, they love

673
00:36:24,480 --> 00:36:27,239
the wine. They were relieved because they love Tim Crookshank,

674
00:36:27,280 --> 00:36:30,719
the founder and CEO Bone Frog, who is a Navy seal,

675
00:36:30,840 --> 00:36:33,480
a veteran he retired, did three tours on our behalf

676
00:36:33,519 --> 00:36:36,559
three deployments. I should say he has bone Frog coffee

677
00:36:36,559 --> 00:36:38,159
you know about. I'm wearing a bone Frog Coffee T

678
00:36:38,280 --> 00:36:41,840
shirt today and drinking Bone Frog coffee. I don't drink wine,

679
00:36:41,840 --> 00:36:44,239
but my friends do. My wife loved the wine. My daughter,

680
00:36:44,239 --> 00:36:46,800
who's brand new to wine, loved it. I'm getting notes

681
00:36:46,840 --> 00:36:49,519
now from listeners and viewers who love the wine, and

682
00:36:49,559 --> 00:36:51,920
Tim wanted to me to thank you for trying it.

683
00:36:51,920 --> 00:36:55,320
It's bonefrogsellers dot com slash todd. Ten percent of proceeds

684
00:36:55,360 --> 00:36:57,960
go to the Navy Seal Foundation to help support the

685
00:36:57,960 --> 00:37:01,039
families of Navy seals who have fallen in duty you'll

686
00:37:01,079 --> 00:37:03,320
see the bone Frog insignia on it, which is a

687
00:37:03,320 --> 00:37:06,400
really cool logo that's insignia of a fallen seal. You'll

688
00:37:06,400 --> 00:37:08,920
see God Country team on it, and you'll read this

689
00:37:08,920 --> 00:37:11,039
story about how Tim was able to do this with

690
00:37:11,119 --> 00:37:14,199
a family from Washington in the organ area that the

691
00:37:14,480 --> 00:37:17,239
trike corners down. There were experts at wine. They taught

692
00:37:17,280 --> 00:37:19,239
him how to do this and help him make the wines.

693
00:37:19,239 --> 00:37:24,679
It's bonefrogsellers dot com slash Todd. The World Bank, Zach

694
00:37:25,400 --> 00:37:28,599
is a little bit afraid that President Trump might might

695
00:37:28,719 --> 00:37:33,119
cut their budget. This is after the World Bank they

696
00:37:33,360 --> 00:37:38,239
lost track of some money and they're looking for it.

697
00:37:38,239 --> 00:37:43,079
It was they find it. I'm sure it was twenty

698
00:37:43,440 --> 00:37:45,159
four billion.

699
00:37:48,320 --> 00:37:51,559
Speaker 3: I mean, check the couch cushions. Check the couch cushions.

700
00:37:53,039 --> 00:37:56,119
Speaker 1: What does the World Bank do? I mean I know

701
00:37:56,239 --> 00:37:59,159
someone whose grand dad was on the border the World Bank,

702
00:37:59,199 --> 00:38:01,480
Tim Draper, and I asked him one day what does

703
00:38:01,519 --> 00:38:05,159
the World Bank do? And he said, look, I don't

704
00:38:05,320 --> 00:38:06,079
He couldn't tell me.

705
00:38:08,960 --> 00:38:14,679
Speaker 3: Here's something I was thinking about. Yeah, did I think

706
00:38:14,719 --> 00:38:17,840
that we as a I think that we as a society,

707
00:38:17,880 --> 00:38:20,239
not just here in the United States, but around the world.

708
00:38:21,039 --> 00:38:23,079
I want you to think about something real quick. Now,

709
00:38:23,159 --> 00:38:25,159
I don't. I am nowhere near as familiar with the

710
00:38:25,239 --> 00:38:28,719
legalities surrounding you know, the legal structure and the and

711
00:38:28,760 --> 00:38:31,719
the rules and the restrictions surrounding the World Bank. What

712
00:38:31,719 --> 00:38:32,440
they can and can't do.

713
00:38:32,519 --> 00:38:35,159
Speaker 1: They could do anything. They can misplace it for a billion.

714
00:38:34,920 --> 00:38:38,880
Speaker 3: Bucks, right, yeah, And that's my whole thing. My assumption

715
00:38:39,119 --> 00:38:41,719
is is that they're set up quite similarly to the

716
00:38:41,760 --> 00:38:45,039
central banks around the world. Correct, so, and as a

717
00:38:45,159 --> 00:38:47,039
matter of fact, my understanding is that they're almost like

718
00:38:47,239 --> 00:38:50,719
a surrogate of the world's central banks. But think about this.

719
00:38:52,960 --> 00:38:55,079
Take a look at the Federal Reserve. Okay, the Federal

720
00:38:55,079 --> 00:38:57,559
Reserve has the ability to create currency out of thin

721
00:38:57,599 --> 00:39:01,159
air without any type of approval. Right, the US government

722
00:39:01,159 --> 00:39:03,000
cannot tell them what to do. The Treasury cannot tell

723
00:39:03,039 --> 00:39:06,920
them what to do. Okay. They can issue currency out

724
00:39:07,000 --> 00:39:11,679
of thin air with no congressional oversight, no audits, nothing,

725
00:39:12,280 --> 00:39:15,280
can't look at the books, they cannot be audited.

726
00:39:16,159 --> 00:39:16,320
Speaker 2: Right.

727
00:39:18,079 --> 00:39:21,880
Speaker 3: What do you think are the chances that if we

728
00:39:21,880 --> 00:39:25,559
were able to pull those curtains back, we would see

729
00:39:26,079 --> 00:39:32,360
ungodly misappropriations of money that we would see potentially central

730
00:39:32,400 --> 00:39:36,960
banks including the FED illegally funding military actions and places

731
00:39:36,960 --> 00:39:41,000
where they shouldn't be making money off illicit trades like

732
00:39:41,119 --> 00:39:42,400
drug and weapons use.

733
00:39:43,400 --> 00:39:43,519
Speaker 4: Uh.

734
00:39:44,639 --> 00:39:47,280
Speaker 3: Look, I'm not accusing the FED of this, but what

735
00:39:47,400 --> 00:39:51,079
I do know is where there is a lack of transparency,

736
00:39:51,119 --> 00:39:55,039
that is never an accident. Right, It's never an accident.

737
00:39:55,760 --> 00:39:59,840
Where there is opacity, it is always there for a reason.

738
00:40:00,159 --> 00:40:05,199
For instance, you don't ever see clouded glass right on

739
00:40:05,280 --> 00:40:08,400
a door that separates the hallway from a pool. Right,

740
00:40:08,519 --> 00:40:11,159
you're you know what I'm saying, Like, where do you

741
00:40:11,199 --> 00:40:13,320
now you walk into a bathroom or a shower door,

742
00:40:13,519 --> 00:40:17,159
You're gonna see some smoky glass, Right, It's for a reason. Right.

743
00:40:17,519 --> 00:40:20,679
So when you see the FED and they have pushed

744
00:40:20,679 --> 00:40:26,119
back vehemently against being audited multiple times, what does that

745
00:40:26,199 --> 00:40:29,920
tell you? And I just sit there deductive reasoning and go,

746
00:40:30,199 --> 00:40:33,159
let's flip it around. What do you think the odds

747
00:40:33,199 --> 00:40:36,960
are that if we audited the FED we wouldn't find

748
00:40:37,000 --> 00:40:37,840
any of that stuff?

749
00:40:38,360 --> 00:40:38,679
Speaker 1: Zero?

750
00:40:39,360 --> 00:40:41,320
Speaker 3: Simply I would say I would agree.

751
00:40:41,159 --> 00:40:43,360
Speaker 1: Hey, when you have a World Bank, And when I

752
00:40:43,360 --> 00:40:45,400
asked him Japer, what do they do well? They fund

753
00:40:45,400 --> 00:40:48,800
projects around the world to help countries that can't afford

754
00:40:48,840 --> 00:40:51,239
loans from the United States. Okay, so the United States

755
00:40:51,280 --> 00:40:53,760
doesn't have to make loans. Well no, I mean we

756
00:40:53,880 --> 00:40:55,960
still make loans and we give money out. Okay, So

757
00:40:56,320 --> 00:40:58,880
they are a supplement to a foreign ade. No, they

758
00:40:58,880 --> 00:41:02,199
don't have that much money. So what do they do? Well,

759
00:41:02,280 --> 00:41:05,039
so they might back say a building projects, say in Africa. Okay,

760
00:41:05,079 --> 00:41:07,119
so like when we have funds to help build things

761
00:41:07,159 --> 00:41:08,599
in Africa, there are a supplement to that.

762
00:41:09,000 --> 00:41:09,159
Speaker 4: No.

763
00:41:09,159 --> 00:41:12,960
Speaker 1: No, they'll buy those things and they'll convert them, convert

764
00:41:13,000 --> 00:41:16,280
them to what. Well, then independent investors will come in.

765
00:41:18,679 --> 00:41:21,840
Who gets that money? Wellthough that goes back to the

766
00:41:21,880 --> 00:41:24,360
World Bank. What do they do with it? Well, they

767
00:41:24,400 --> 00:41:28,280
go fund projects. It's a bank, it's a sticking bank.

768
00:41:28,920 --> 00:41:30,360
And we don't get to audit that. We don't get

769
00:41:30,400 --> 00:41:34,599
to audit the FED. I'm telling you be suspicious of

770
00:41:34,639 --> 00:41:38,639
this as a as as a married couple. If you

771
00:41:38,679 --> 00:41:41,840
walk into the front room and your spouse is typing

772
00:41:41,880 --> 00:41:43,239
away on the phone and they see you coming and

773
00:41:43,280 --> 00:41:45,360
they turn it off and set it face down and

774
00:41:45,119 --> 00:41:47,960
then sit back from it.

775
00:41:49,239 --> 00:41:51,159
Speaker 3: They probably weren't buying you at Christmas present.

776
00:41:51,719 --> 00:41:54,679
Speaker 1: Maybe they were, but probably not. So when someone does

777
00:41:54,719 --> 00:41:56,599
that you know, they don't want you to see what

778
00:41:56,639 --> 00:41:58,360
they're doing. We know the FED doesn't want us to

779
00:41:58,360 --> 00:42:01,320
see what they're doing. So I whole President Trump comes

780
00:42:01,360 --> 00:42:03,360
along to the World Bank and says, yeah, i'll give

781
00:42:03,360 --> 00:42:04,679
you more money as as soon as you tell me

782
00:42:04,719 --> 00:42:05,719
where it's twenty four billion one.

783
00:42:07,760 --> 00:42:11,119
Speaker 3: Well, and look, and I think that's the same I

784
00:42:11,119 --> 00:42:14,119
think that's the same thing, the same. Well, what I'm

785
00:42:14,159 --> 00:42:16,519
hoping that same approach to users with the FED is

786
00:42:16,519 --> 00:42:19,599
what I'm And what I'm hoping is that his threat

787
00:42:19,920 --> 00:42:24,920
of inserting himself into interest rate or monetary policy decisions

788
00:42:25,519 --> 00:42:27,639
is just leveraged for him to get the FED to

789
00:42:27,679 --> 00:42:28,440
agree to an audit.

790
00:42:28,679 --> 00:42:31,400
Speaker 1: Oh wow, I would love that so much.

791
00:42:31,719 --> 00:42:34,559
Speaker 3: Yes, because if that's why he's threatening being involved in

792
00:42:34,599 --> 00:42:37,679
the monetary policy decisions, then then I'm good with that.

793
00:42:39,000 --> 00:42:42,920
If he earnestly wants to be involved in monetary policy decisions,

794
00:42:43,119 --> 00:42:46,480
I think that is a train wreck. Uh, And that

795
00:42:46,639 --> 00:42:49,800
is something that will cost us deerly in the long run.

796
00:42:50,079 --> 00:42:54,039
Speaker 1: So I totally agree with you and that when I

797
00:42:54,119 --> 00:42:56,960
brought up auditing the FED. Did I tell that story

798
00:42:56,960 --> 00:42:58,960
when I brought up auditing the FED Washington DC, When

799
00:42:58,960 --> 00:43:01,480
I was in the Republican Now Committee Leadership Team meeting.

800
00:43:02,360 --> 00:43:04,440
Speaker 3: No, but I'm sure it was like the equivalent. I'm

801
00:43:04,440 --> 00:43:07,000
sure the reaction was like having a you know, a

802
00:43:07,039 --> 00:43:08,840
square gun full of holy water in a room full

803
00:43:08,880 --> 00:43:09,400
of vampires.

804
00:43:11,119 --> 00:43:13,639
Speaker 1: I'll tell you in a second the actual reaction. It

805
00:43:13,719 --> 00:43:15,599
was so so phenomenal that we need to go through

806
00:43:15,840 --> 00:43:19,320
some spending and just you know, I like what about isms,

807
00:43:19,400 --> 00:43:21,119
So I thought we'd do some what about isms in

808
00:43:21,199 --> 00:43:25,159
terms of what we spent in this past year and

809
00:43:25,400 --> 00:43:28,159
just work our way down to some people who might

810
00:43:28,199 --> 00:43:29,800
need the money more than the folks were giving it to.

811
00:43:29,840 --> 00:43:33,119
We're talking to Sack Abraham, chief investment Officer Borward Capital Management.

812
00:43:33,920 --> 00:43:36,039
In terms of money, you might pay a little bit

813
00:43:36,079 --> 00:43:38,079
more for Alan soaps. I'm gonna admit it. I'm going

814
00:43:38,119 --> 00:43:40,119
to tell you right now you might pay more. I'm

815
00:43:40,119 --> 00:43:42,559
just going to tell you that. Now you might also

816
00:43:42,639 --> 00:43:44,840
feel better about paying more. And I'll tell you that

817
00:43:45,480 --> 00:43:47,119
because you're going to purchase soap for the rest of

818
00:43:47,159 --> 00:43:52,800
your life unless you are disgusting. So you make me sick,

819
00:43:54,360 --> 00:43:56,119
but no one's really going to do that. You're always

820
00:43:56,119 --> 00:43:57,920
going to clean your body, so you might be buying

821
00:43:57,960 --> 00:43:59,840
it from Dove. You might be buying it from Ivory

822
00:43:59,880 --> 00:44:04,280
and other words Pfizer Consumer Health or you know Monsanto

823
00:44:04,480 --> 00:44:08,360
or big company ABC that really doesn't care about you.

824
00:44:08,559 --> 00:44:10,679
They don't care about your health. They probably make their

825
00:44:10,679 --> 00:44:13,559
products in China, maybe with a little slave labor thrown in.

826
00:44:13,599 --> 00:44:17,519
But hey, your skin feels great, so you might make

827
00:44:19,800 --> 00:44:25,199
decision to spend more for soap that's made in America.

828
00:44:25,599 --> 00:44:27,880
It's all natural. It's made by a family of three

829
00:44:27,920 --> 00:44:30,440
generations of soap making expertise. And they can't make it

830
00:44:30,480 --> 00:44:32,880
a billion bars at a time at small batch because

831
00:44:32,880 --> 00:44:36,400
they control the process. But here's what you're actually paying for.

832
00:44:36,599 --> 00:44:39,480
It's not just the amazing soap. You're paying to employ people.

833
00:44:39,880 --> 00:44:44,559
Amy who got late on set autism. She'd been neurotypical.

834
00:44:44,920 --> 00:44:48,320
Something happened she got autism. I can't say what that

835
00:44:48,360 --> 00:44:51,079
thing was because this is going on YouTube.

836
00:44:52,559 --> 00:44:53,239
Speaker 3: Just let you know.

837
00:44:54,280 --> 00:44:57,639
Speaker 1: Ian, who has autism, is Alan's younger brother. He is

838
00:44:57,679 --> 00:45:01,199
responsible for the liquid blend called Ian's. And then there's Alan,

839
00:45:01,320 --> 00:45:05,159
the namesake of the company, who is nonverbal, very profoundly

840
00:45:05,159 --> 00:45:08,000
affected by autism as well as some structural health challenges.

841
00:45:08,440 --> 00:45:11,360
It's fourteen. He's been through eighteen operations. You try being

842
00:45:11,360 --> 00:45:14,639
a happy warrior after that. Alan is so you're gonna

843
00:45:14,679 --> 00:45:17,440
pay more for better soap that's made in America and

844
00:45:17,519 --> 00:45:22,079
supports hiring people like that. We want four employees right now.

845
00:45:22,079 --> 00:45:26,159
It's three. Your soap purchase for Christmas, even for Thanksgiving

846
00:45:26,559 --> 00:45:28,280
can help with that. Go to Alan Soaps dot Com

847
00:45:28,280 --> 00:45:30,800
slash todd at ten percent off all their products. There

848
00:45:30,840 --> 00:45:34,199
it's Alansoaps dot Com slash Todd so Zach, let's run

849
00:45:34,239 --> 00:45:37,039
through some numbers for the year, just a year in review.

850
00:45:37,679 --> 00:45:40,119
So far this year, the United States has given twenty

851
00:45:40,199 --> 00:45:44,599
four billion four hundred billion to Ukraine, eleven billion, three

852
00:45:44,639 --> 00:45:48,239
hundred million to Israel, one million nine or one billion,

853
00:45:48,320 --> 00:45:51,400
nine hundred and fifty million to Ethiopia, one point six

854
00:45:51,679 --> 00:45:54,280
billion to Jordan, one point four billion to Egypt, one

855
00:45:54,320 --> 00:45:57,800
point one billion to Afghanistan, one point one billion to Somalia,

856
00:45:58,159 --> 00:46:00,519
one billion to Yma, nine hundred and eighty seven million

857
00:46:00,599 --> 00:46:04,400
to Congo, eight hundred and ninety six million to Syria,

858
00:46:04,719 --> 00:46:07,360
nine thousand per illegal immigrant who's entered the country, and

859
00:46:07,440 --> 00:46:13,760
Americans who've lost everything through Hurricane Helene are filling out paperwork,

860
00:46:14,000 --> 00:46:16,280
hoping very very much to be able to get seven

861
00:46:16,320 --> 00:46:20,039
hundred and fifty dollars, many many people being denied that

862
00:46:20,119 --> 00:46:23,400
seven hundred and fifty dollars. You made a joke earlier

863
00:46:23,440 --> 00:46:26,840
about Elon Musk and vivik Ramaswami and the doge thing.

864
00:46:28,039 --> 00:46:33,119
I start here, I start with this comparison, and I

865
00:46:33,239 --> 00:46:35,159
go back and I talk about something you and I've

866
00:46:35,159 --> 00:46:37,760
addressed on this show before. It is time for President

867
00:46:37,760 --> 00:46:41,320
Trump to come to the table and say this. Every

868
00:46:41,840 --> 00:46:46,920
government department starts at zero. It's baseline budgeting time. Guys,

869
00:46:47,440 --> 00:46:50,199
your spreadsheets are filled with zeros. Come and make an

870
00:46:50,280 --> 00:46:53,800
argument that you should exist fair enough.

871
00:46:53,920 --> 00:47:00,480
Speaker 3: Yeah, oh, I mean yeah, I mean yeah at one percent.

872
00:47:01,719 --> 00:47:03,920
I mean, I mean, I do feel bad for the Congo.

873
00:47:04,760 --> 00:47:07,480
You know, I'm they didn't hit the billion dollar mark.

874
00:47:07,559 --> 00:47:12,679
I would introduce that for racism. Probably some is Yeah,

875
00:47:12,760 --> 00:47:14,119
I mean you got to get I mean, I mean,

876
00:47:14,119 --> 00:47:15,840
it's just the slap of the face when you're not

877
00:47:15,880 --> 00:47:18,679
a part of the billion dollar United States giveaway, you know,

878
00:47:18,760 --> 00:47:20,679
I mean, like that's it. That's like not having a

879
00:47:20,719 --> 00:47:22,840
seat at the table for family thanksgiving. You know, you

880
00:47:22,880 --> 00:47:24,199
show up, You're like, where am I going to sit?

881
00:47:25,920 --> 00:47:29,679
I mean, your yeah, yeah, or you sit outside the

882
00:47:29,679 --> 00:47:32,199
garage with a cat, you know, keep him company.

883
00:47:32,440 --> 00:47:32,599
Speaker 2: Yeah.

884
00:47:33,639 --> 00:47:36,400
Speaker 3: This, I mean, there's so much low hanging fruit. People

885
00:47:36,400 --> 00:47:37,840
are like, oh, they're not going to live up to

886
00:47:37,880 --> 00:47:40,159
the expectations, And I'm like, look, do I think that

887
00:47:40,199 --> 00:47:44,119
they're going to trim an amount of money that significantly

888
00:47:44,159 --> 00:47:48,079
impacts our deficit situation right now? No? I don't, Okay,

889
00:47:48,239 --> 00:47:51,679
do I think that they could trim hundreds of billions

890
00:47:51,679 --> 00:47:55,679
of dollars off of the federal deficit and for us

891
00:47:55,719 --> 00:48:01,119
to actually see increased service and in increased results. I

892
00:48:01,199 --> 00:48:05,360
absolutely think that that is possible. I don't think it's

893
00:48:05,440 --> 00:48:09,360
not only possible, I think it's fairly easy. Meaning I

894
00:48:09,920 --> 00:48:15,719
don't think like there's so many of these situations where

895
00:48:15,519 --> 00:48:20,800
the money spent on the regulator is the problem. Right, Like, So,

896
00:48:21,079 --> 00:48:24,000
if all you do is get the regular out of

897
00:48:24,039 --> 00:48:26,440
the regulator and not all the not all the time,

898
00:48:26,440 --> 00:48:29,639
and not with all regulations, but sometimes a lot of

899
00:48:29,639 --> 00:48:32,679
the the you get a two for one deal, right.

900
00:48:32,719 --> 00:48:35,119
You get the money that you save federally, then you

901
00:48:35,159 --> 00:48:38,119
get the increased tax revenue off of increased production and

902
00:48:38,159 --> 00:48:42,280
increased profitability in the underlying sector. Yep. So it's it's

903
00:48:42,360 --> 00:48:44,199
kind of a it's a two for one. So do

904
00:48:44,280 --> 00:48:47,440
I think that they should do that, Yes, But here's

905
00:48:47,480 --> 00:48:50,159
the reason, you know, to be fair to our politicians

906
00:48:50,199 --> 00:48:53,760
on the hill, uh and and all those and all

907
00:48:53,760 --> 00:48:56,480
those bureaucrats in the UNA, to be fair to them.

908
00:48:56,519 --> 00:48:59,280
The reason that they're not giving these people more than

909
00:48:59,320 --> 00:49:02,679
seven hundred fifty bucks. I mean, I don't think you're

910
00:49:02,679 --> 00:49:05,400
being really fair about it, Todd when they give those

911
00:49:05,440 --> 00:49:09,159
people the money needed to rebuild their houses. Yeah, their

912
00:49:09,239 --> 00:49:12,599
nieces and nephews aren't getting special board positions that are

913
00:49:12,599 --> 00:49:15,079
paying half a million dollars a year by some foreign entity.

914
00:49:15,239 --> 00:49:16,039
Speaker 1: I didn't even fight.

915
00:49:17,119 --> 00:49:21,320
Speaker 3: Yeah, I mean, so you know, if nephew Nick ain't

916
00:49:21,360 --> 00:49:24,880
getting his sweetheart five hundred grand a year, you know,

917
00:49:24,960 --> 00:49:30,280
working for an Estonian you know, nat gas provider or

918
00:49:30,320 --> 00:49:33,519
something like that, I mean what you know. I mean, look,

919
00:49:33,719 --> 00:49:36,519
I wish to folks, well, hope they can rebuild their house,

920
00:49:36,920 --> 00:49:38,440
but nephew Nick's got to eat man.

921
00:49:38,679 --> 00:49:41,440
Speaker 1: Yeah, you know, let me just say this now. I

922
00:49:41,519 --> 00:49:44,039
want to apologize all the people I hurt by not

923
00:49:44,239 --> 00:49:46,880
understanding this better, and I seek to do better in

924
00:49:46,880 --> 00:49:48,800
the future. I'll reach out to some of these communities

925
00:49:48,840 --> 00:49:52,360
as the marginalized sons and daughters of speakers of the House.

926
00:49:52,079 --> 00:49:53,119
Speaker 3: And et cetera.

927
00:49:53,519 --> 00:49:55,920
Speaker 1: And we just learned, you know, I just I fell

928
00:49:56,039 --> 00:49:59,840
short of my expectations of myself. And I'm making a small,

929
00:50:00,440 --> 00:50:02,880
small to my size, to the fund to preserve the

930
00:50:02,920 --> 00:50:04,639
sons and daughters of the United States Senators.

931
00:50:05,280 --> 00:50:07,199
Speaker 3: That's what I'm here for. Man, I think I'm happy

932
00:50:07,199 --> 00:50:07,920
to be of service.

933
00:50:08,360 --> 00:50:11,639
Speaker 1: Attention, Zach Abram has been with US Chief investment Officer

934
00:50:11,639 --> 00:50:15,559
Bollward Capital Management and good friends, great friend of the show.

935
00:50:16,239 --> 00:50:19,039
Always appreciate you. It's wise counsel day. Thank you, my brother.

936
00:50:19,920 --> 00:50:21,760
Speaker 3: Hey, thanks for having me. Man, God bless you and

937
00:50:21,760 --> 00:50:22,320
all the listeners.

938
00:50:22,400 --> 00:50:24,400
Speaker 1: I bless you. This is the Todd armashell. Please go

939
00:50:24,480 --> 00:50:26,840
be well, be strong, be kind, Please make every effort

940
00:50:26,920 --> 00:50:29,320
to walk in the light of Christ.