1 00:00:00,160 --> 00:00:02,240 Speaker 1: So as I sat down to talk with Zach Abraham, 2 00:00:02,319 --> 00:00:04,919 Chief investment Officer Bower Capital Management, I learned that there's 3 00:00:04,960 --> 00:00:08,039 some new products at Apple, and they are world changing. 4 00:00:08,839 --> 00:00:10,960 This is going to change the landscape of technology forever. 5 00:00:11,119 --> 00:00:13,439 No longer do you need a phone. In fact, all 6 00:00:13,480 --> 00:00:15,560 you need to do is to rub your nose and 7 00:00:15,720 --> 00:00:20,640 say the magic words and you're connected via phone. Unbelievable technology. 8 00:00:20,719 --> 00:00:23,480 Zach Abraham joins us through the help of God Almighty. 9 00:00:25,760 --> 00:00:29,640 Speaker 2: But Todd Herman Show is one percent disapproved by big 10 00:00:29,719 --> 00:00:37,479 pharma technocrats in tyrone sabranware from the high mountains of 11 00:00:37,600 --> 00:00:45,439 Free America. Here's the Emerald City exile Todd Herman. 12 00:00:51,640 --> 00:00:54,359 Speaker 1: Today is the day the Lord has made, and these 13 00:00:54,399 --> 00:00:56,240 are the times to which God has the said we 14 00:00:56,240 --> 00:00:59,079 shall live. My friend and brother, Chief investment officer Bower 15 00:00:59,159 --> 00:01:02,359 Capital Management jo on the Todderman Show. Welcome Zach, good 16 00:01:02,359 --> 00:01:05,359 to see you. Good to see you sat down. You 17 00:01:05,359 --> 00:01:08,680 know we're recording this on Wednesday, and just this amazing 18 00:01:08,920 --> 00:01:13,599 new series of technology releases from Apple. This tape that 19 00:01:13,680 --> 00:01:16,239 you can actually put on your wall and then it 20 00:01:16,319 --> 00:01:19,280 grows into paint and coats your entire house and a 21 00:01:19,319 --> 00:01:21,200 new color I don't know where they come up with 22 00:01:21,200 --> 00:01:23,599 these ideas. Because I heard that Apple's stock was rallying, 23 00:01:24,200 --> 00:01:26,280 so it has to be new tech. So what what 24 00:01:26,319 --> 00:01:27,640 are the new inventions? 25 00:01:28,120 --> 00:01:31,560 Speaker 3: Well, on the on the docket, they're coming out with 26 00:01:31,640 --> 00:01:36,319 this incredible new cell phone. It's really thin and you 27 00:01:36,359 --> 00:01:42,079 can fold it. What. Oh, wait a second, that's what samnsung. 28 00:01:42,719 --> 00:01:46,400 Oh wait like five years ago. Wait a second, that 29 00:01:46,480 --> 00:01:48,719 can't be it. Hold on, hold on, hold on, they 30 00:01:48,840 --> 00:01:52,079 got to teleport. No, here's what's funny about this, Todd. 31 00:01:52,719 --> 00:01:55,400 We It's funny because I did. I had no idea 32 00:01:55,439 --> 00:01:57,599 that you were going to ask about Apple today. Yeah, 33 00:01:57,640 --> 00:01:59,840 but I was talking to my head of research on 34 00:02:00,079 --> 00:02:02,680 phone this morning, you know, just doing our morning call 35 00:02:02,719 --> 00:02:06,439 going over things, and we had a serious discussion about 36 00:02:06,480 --> 00:02:10,960 how we never thought that the market could get this 37 00:02:11,319 --> 00:02:16,240 dumb and look and when I say that, like, you know, 38 00:02:16,319 --> 00:02:19,120 I hate it when people say, oh, something's rallying for 39 00:02:19,159 --> 00:02:21,840 this reason or something's rallying for that reason. How do 40 00:02:21,919 --> 00:02:23,840 you know there isn't somebody buying a big block of 41 00:02:23,879 --> 00:02:26,960 stock that knows something you don't, Right, There's always these 42 00:02:27,000 --> 00:02:29,680 other contingencies. But every once in a while you run 43 00:02:29,680 --> 00:02:31,840 into a stock like Apple that is one of the 44 00:02:31,840 --> 00:02:34,000 biggest stocks in the world, one of the hardest to 45 00:02:34,039 --> 00:02:36,280 manipulate because of its size, all that kind of stuff, 46 00:02:36,520 --> 00:02:39,240 and out of the blue, on a relatively flat and 47 00:02:39,360 --> 00:02:43,479 actually negative tape, it just shoots up five percent and 48 00:02:43,520 --> 00:02:45,960 then on that same day you get this headline that 49 00:02:46,039 --> 00:02:48,719 comes out. Right, So with a stock like that, it's 50 00:02:48,759 --> 00:02:51,319 pretty self evident. Oh, it's rallying because of this news. 51 00:02:51,599 --> 00:02:56,120 Here's the irony. Apple up one what is it, one 52 00:02:56,199 --> 00:03:00,120 hundred and fifty billion dollars in market cap because they're 53 00:03:00,159 --> 00:03:02,719 going to spend one hundred billion dollars to have lower 54 00:03:02,759 --> 00:03:08,639 margin to products. That's the news. That's the news. So yeah, 55 00:03:08,639 --> 00:03:10,960 because okay, they're going to invest one hundred billion dollars 56 00:03:11,000 --> 00:03:14,800 to increase manufacturing here in the United States. Whatever moves 57 00:03:14,800 --> 00:03:18,800 from China to the United States, even with even with 58 00:03:20,759 --> 00:03:24,280 tariffs in place, is going to be a higher costed right, 59 00:03:25,199 --> 00:03:28,319 And what Apple is probably doing built into that deal 60 00:03:28,400 --> 00:03:31,599 is some some concession where if they build a certain 61 00:03:31,639 --> 00:03:34,639 amount here, they'll lower the tariffs on the other side. 62 00:03:34,759 --> 00:03:36,919 My whole point saying that when you look at a 63 00:03:36,960 --> 00:03:42,879 company like Apple, news like that should probably be and 64 00:03:43,199 --> 00:03:45,680 not to be unfair to them. News like that can 65 00:03:45,719 --> 00:03:50,360 be would be a non sequitor. It wouldn't make me 66 00:03:50,439 --> 00:03:52,240 want to sell the stock if I owned it. It 67 00:03:52,280 --> 00:03:54,199 wouldn't make me want to buy the stock if I 68 00:03:54,240 --> 00:03:57,520 owned it. Watching it drive a company that's worth three 69 00:03:57,599 --> 00:04:01,599 point two trillion dollars up almost six percent on the session, 70 00:04:01,639 --> 00:04:04,520 though again, think you've got to think about how big 71 00:04:04,560 --> 00:04:08,240 that number is. Because they're gonna spend one hundred billion 72 00:04:08,319 --> 00:04:11,280 dollars and have lower margin products built here in the 73 00:04:11,400 --> 00:04:14,919 United States. The value of the company pops almost two 74 00:04:15,000 --> 00:04:16,800 hundred billion dollars on a single day. 75 00:04:17,399 --> 00:04:20,240 Speaker 1: That's just disconnected from reality, and it continues to be. 76 00:04:20,600 --> 00:04:23,319 And could this be someone who wants to support the 77 00:04:23,360 --> 00:04:25,759 presidents and what support what he's doing. Could it be 78 00:04:25,800 --> 00:04:28,560 that they go out and make a big buy because 79 00:04:28,639 --> 00:04:30,959 oh what do they care? They make a big stock, 80 00:04:31,040 --> 00:04:33,040 buy a big block of this stuff that can show, oh, 81 00:04:33,079 --> 00:04:33,879 look this is good. 82 00:04:34,959 --> 00:04:40,079 Speaker 3: No, I think the reality is worse what I think? No, 83 00:04:40,160 --> 00:04:42,079 And I mean this, and I've talked about it and 84 00:04:42,079 --> 00:04:46,399 we'll keep talking about it, just because every every unsustainable 85 00:04:46,439 --> 00:04:49,439 bubble built on the wrong things. And look, I'm not 86 00:04:49,600 --> 00:04:52,160 calling the whole stock market a bubble. I don't think 87 00:04:52,160 --> 00:04:54,399 the whole stock market is a bubble. I think that 88 00:04:54,439 --> 00:04:58,519 there are tons of bubbles in it, though. And what's 89 00:04:58,560 --> 00:05:01,639 interesting about this period of time, usually your biggest stocks 90 00:05:02,000 --> 00:05:08,480 pardon me, oh I got it, yep, sorry, man, I 91 00:05:08,560 --> 00:05:14,480 need a cough button here. Swallowed a fly or something, Yeah, 92 00:05:14,480 --> 00:05:15,079 I think I'm good. 93 00:05:16,079 --> 00:05:16,879 Speaker 1: Swallow a spider. 94 00:05:17,920 --> 00:05:19,920 Speaker 3: Yeah, well, I mean my wife. Yeah, my wife would 95 00:05:19,879 --> 00:05:24,600 probably prefer that she hates the spiders. But so when 96 00:05:24,600 --> 00:05:27,040 you're when you look at when you're you know, when 97 00:05:27,040 --> 00:05:29,759 you actually examine those numbers and you're sitting there going, okay, 98 00:05:29,800 --> 00:05:33,680 hold on a second. So you've got a company its 99 00:05:33,800 --> 00:05:38,240 growth is almost completely reliant on their services. So for 100 00:05:38,360 --> 00:05:42,720 existing clients, because they're not really growing, their main flagship 101 00:05:42,800 --> 00:05:46,199 product is losing market share on an annual basis. And 102 00:05:46,720 --> 00:05:48,519 they're going to cut a trade deal which is going 103 00:05:48,600 --> 00:05:52,360 to require them to produce their most profitable product at 104 00:05:52,360 --> 00:05:56,160 a lower margin, and that pushes you up two hundred 105 00:05:56,279 --> 00:05:59,160 billion dollars. And when you look throughout the market, like 106 00:05:59,199 --> 00:06:02,680 I was saying, you see so many of these microbubbles. 107 00:06:02,720 --> 00:06:06,959 The thing that's concerning to us is what the long 108 00:06:07,040 --> 00:06:10,360 term implications of this stuff are and and but in 109 00:06:10,399 --> 00:06:13,920 the most immediate the reason I think that you are 110 00:06:13,959 --> 00:06:18,519 seeing these anomalies is because you have a record level 111 00:06:18,680 --> 00:06:22,600 of retail participation in this market, and it's not even close. 112 00:06:23,439 --> 00:06:27,680 And that level of retail involvement is accompanied with the 113 00:06:27,839 --> 00:06:32,959 highest levels of retail debt margin or margin debt, and 114 00:06:33,279 --> 00:06:37,040 option utilization. So not only do you have the highest 115 00:06:37,120 --> 00:06:41,480 amount of retail involvement and que and quite frankly, the 116 00:06:41,519 --> 00:06:44,959 stock market acts like that. Okay, So why would Apple 117 00:06:45,000 --> 00:06:46,639 go up five and a half to six percent on 118 00:06:46,720 --> 00:06:49,199 news like that today? Because amateurs are driving? 119 00:06:49,639 --> 00:06:49,920 Speaker 2: Okay? 120 00:06:50,360 --> 00:06:54,199 Speaker 3: And yeah, why is a stock like Palanteer trading at 121 00:06:54,199 --> 00:06:57,079 one hundred and five times sales because amateurs are driving? 122 00:06:57,360 --> 00:06:59,959 Why is Tesla creating at one hundred and ninety times earnings? 123 00:07:00,000 --> 00:07:03,480 Because amateurs are driving? And all they've seen are these 124 00:07:03,560 --> 00:07:07,000 names work for fifteen years. And so when you see 125 00:07:07,040 --> 00:07:11,360 some work for fifteen years, it becomes gospel, right, And 126 00:07:11,439 --> 00:07:13,519 so what do you do when you what do you 127 00:07:13,600 --> 00:07:17,839 do when you identify a can't lose investment? You lever 128 00:07:18,000 --> 00:07:21,079 up to the hilt and wade into it. So what 129 00:07:21,120 --> 00:07:25,040 it's created? And I have no idea, Like I said, 130 00:07:25,279 --> 00:07:28,680 I know for a fact that when these and it's 131 00:07:28,680 --> 00:07:32,279 not like you're saying something bad has to happen, Apple 132 00:07:32,360 --> 00:07:35,680 will will return to an intrinsic value, and that intrinsic 133 00:07:35,759 --> 00:07:38,160 value is probably fifty to sixty percent lower than it's 134 00:07:38,199 --> 00:07:44,240 currently trading if if their business does not continue to deteriorate. 135 00:07:45,399 --> 00:07:48,839 Now there's some talk of the move being today again 136 00:07:49,279 --> 00:07:52,040 full disclod here. There's some people saying that it's because 137 00:07:52,079 --> 00:07:55,040 news came out over the weekend that Apple was developing 138 00:07:55,079 --> 00:07:59,360 its own AI search engine. But didn't Apple release that 139 00:07:59,439 --> 00:08:00,680 same news three years ago? 140 00:08:01,120 --> 00:08:01,879 Speaker 2: Right? Right? 141 00:08:01,879 --> 00:08:04,720 Speaker 3: Like, didn't Apple just ignore it? Wasn't the launch of 142 00:08:04,759 --> 00:08:07,439 their AI search engine on their new iPhone that was 143 00:08:07,439 --> 00:08:10,959 supposed to be the AI iPhone. Wasn't that supposed to be? That? 144 00:08:11,639 --> 00:08:15,360 Wasn't Apple going to launch Apple TV? Wasn't Apple considering 145 00:08:15,399 --> 00:08:18,279 getting in the vehicle game? Wasn't Apple going to put 146 00:08:18,279 --> 00:08:20,439 out the best VR headset on the market? 147 00:08:21,040 --> 00:08:21,319 Speaker 2: Right? 148 00:08:21,439 --> 00:08:24,040 Speaker 3: Did they succeed at any of those? No? So then 149 00:08:24,079 --> 00:08:26,120 I'd sit there and go, Okay. So Apple says they're 150 00:08:26,160 --> 00:08:28,000 going to develop something, and for the first time in 151 00:08:28,079 --> 00:08:30,079 fourteen years, you're gonna think it's going to be a winner. 152 00:08:30,439 --> 00:08:32,080 I'm going to take the other side of that bet, 153 00:08:32,279 --> 00:08:34,879 especially at this The other side of it is, especially 154 00:08:34,919 --> 00:08:37,480 at this valuation. If I'm sitting there looking at Apple 155 00:08:37,519 --> 00:08:41,120 at fifteen or sixteen times earnings, I might want to 156 00:08:41,200 --> 00:08:43,679 roll the dice on that. Yeah, you know, they could 157 00:08:43,679 --> 00:08:46,039 buy backstock and pay some dividends and things like that. 158 00:08:46,120 --> 00:08:49,399 But that's the thing that's really mind blowing, Todd is 159 00:08:49,960 --> 00:08:52,799 you look across this market and you see it just 160 00:08:52,840 --> 00:08:56,799 a complete lack of uniformity. You see a complete lack 161 00:08:56,840 --> 00:09:00,960 of discipline as it relates to pricing and value. You 162 00:09:01,000 --> 00:09:07,360 see some stocks that are just heads scratchingly stupid, cheap 163 00:09:07,840 --> 00:09:10,679 or expensive, I mean, and you see stocks on the 164 00:09:10,720 --> 00:09:14,200 other side of it. It's really it's really bizarre. And 165 00:09:14,240 --> 00:09:17,120 I think the stock market has kind of begin to 166 00:09:17,240 --> 00:09:20,279 be a mirror of culture, which is nobody really knows 167 00:09:20,279 --> 00:09:22,559 which ends up, and everybody's having their own party. 168 00:09:22,919 --> 00:09:25,240 Speaker 1: If a man can be a woman, then a stock 169 00:09:25,360 --> 00:09:27,440 at one hundred and fifty times earnings can be whatever 170 00:09:27,440 --> 00:09:30,559 you need it to be. Well said, And let me 171 00:09:30,600 --> 00:09:33,080 point this out as well. The medical sector in America. 172 00:09:33,519 --> 00:09:35,799 You think the medical sector in America is a healthy sector. 173 00:09:35,919 --> 00:09:37,799 I don't and I'll tell you why. Because so much 174 00:09:37,840 --> 00:09:40,799 of its force smoking mirrors, you're forced to do these things. 175 00:09:40,960 --> 00:09:44,879 Take for instance, this performance of back surgeries versus the 176 00:09:44,919 --> 00:09:48,759 stem cells at Renew so Renew Healthcare in Mexico, where 177 00:09:48,799 --> 00:09:50,960 Zach is gone, I've gone. I got it in my back, 178 00:09:51,039 --> 00:09:53,639 he got in his knees. I've been there three times. 179 00:09:53,679 --> 00:09:56,799 I've sent and you know Mark and Brandlin. I sent 180 00:09:56,840 --> 00:10:00,039 my dear friends who had our life group there. The 181 00:10:00,000 --> 00:10:03,120 the performance of back surgeries includes about a third of 182 00:10:03,159 --> 00:10:06,720 these surgeries end up with follow ups follow ups. I 183 00:10:06,720 --> 00:10:10,360 didn't say follow up surgery, I said follow ups. So 184 00:10:10,639 --> 00:10:15,039 a second, third surgery, maybe fourth. If you're being told 185 00:10:15,039 --> 00:10:17,480 that this is your future because you're having trouble bending 186 00:10:17,480 --> 00:10:20,679 over or picking up your grandkids or reaching up high, 187 00:10:20,960 --> 00:10:24,039 are you sure you don't want to check with Renew first? 188 00:10:24,080 --> 00:10:25,759 Are you sure you don't want to use their ethically 189 00:10:25,759 --> 00:10:28,480 gathered stem cells only from umbilical cores at the world 190 00:10:28,559 --> 00:10:33,200 class lab, the biggest hyperbaric chamber in North America, the 191 00:10:33,200 --> 00:10:36,600 most sure science to make sure that these are the 192 00:10:36,720 --> 00:10:39,080 very best stem cells. Or maybe you could take a 193 00:10:39,159 --> 00:10:42,200 shot at like your bud who's a chiropractor, up where 194 00:10:42,240 --> 00:10:44,360 you live. Who can get a bunch of stem cells 195 00:10:44,360 --> 00:10:47,799 from whomever frozen, shipped across the country and stored wherever. 196 00:10:48,120 --> 00:10:50,399 I guess you could do it that way. Check out 197 00:10:50,399 --> 00:10:53,000 renew It's our e n ue dot Healthcare telling me 198 00:10:53,039 --> 00:10:55,120 are part of the Todd Hermannshaw family. They will tell 199 00:10:55,120 --> 00:10:57,480 you if they can help you avoid surgery and don't 200 00:10:57,559 --> 00:10:59,639 roll the dice with this or that chiropractor or this 201 00:10:59,720 --> 00:11:01,919 lady on the street who bought some stem cells and 202 00:11:02,240 --> 00:11:04,919 the frozen and that they're in their two years. They 203 00:11:04,960 --> 00:11:07,519 know everybody that they work with. They know the moms, 204 00:11:07,519 --> 00:11:09,279 they know the babies, they know their health. It's r 205 00:11:09,320 --> 00:11:13,399 E n ue dot Healthcare. So, Zach, here's another form 206 00:11:13,559 --> 00:11:19,559 of just to me astonishment. Apple. Clearly the stock is pumped. 207 00:11:19,799 --> 00:11:22,279 Clearly to me, it looks like it's way too high. 208 00:11:22,320 --> 00:11:24,440 Same thing with Paltie. You just said this all tesla, 209 00:11:25,000 --> 00:11:26,840 and yet it's right there in the open. Anybody can 210 00:11:26,879 --> 00:11:31,200 observe it. Anybody can observe what Christine Legard, president of 211 00:11:31,240 --> 00:11:34,639 the European Central Bank, says. She's talking about the digital 212 00:11:34,679 --> 00:11:38,159 euro rollout. Listen to how she tries to get us 213 00:11:38,240 --> 00:11:39,159 excited for this. 214 00:11:39,679 --> 00:11:43,639 Speaker 4: Many people are a little vollied about what will happen 215 00:11:43,720 --> 00:11:49,200 to them with take hero Can you encourage them? Why 216 00:11:49,279 --> 00:11:51,879 is the euro coats of people like you like me? 217 00:11:52,960 --> 00:11:56,120 Speaker 5: A digital currency where it has been piloted and there 218 00:11:56,159 --> 00:11:58,879 is only one which is clearly now launched in a 219 00:11:58,960 --> 00:12:01,639 in a very small country, but it is piloted on 220 00:12:01,679 --> 00:12:05,799 a fairly large scale in China, is of huse and 221 00:12:05,840 --> 00:12:09,600 of service to all citizens. So it is not something 222 00:12:09,679 --> 00:12:14,120 that is good for the elite, or is good for 223 00:12:14,159 --> 00:12:18,080 the young, or is good for some versus others. If 224 00:12:18,120 --> 00:12:21,399 it is well done and if it is well implemented, 225 00:12:21,519 --> 00:12:24,240 it would be of service to all citizens. 226 00:12:25,200 --> 00:12:30,200 Speaker 1: She is explaining that a country that can take your 227 00:12:30,200 --> 00:12:35,279 currency from you for being insufficiently supportive of the government 228 00:12:36,519 --> 00:12:41,639 or being insufficiently supportive of its policies with their digital 229 00:12:41,679 --> 00:12:45,559 currency is of service to all citizens. This isn't a 230 00:12:45,600 --> 00:12:50,080 tool of the elite, Zach. She said that and maybe 231 00:12:50,080 --> 00:12:50,759 even meant it. 232 00:12:52,480 --> 00:12:55,759 Speaker 3: Yeah. I think she You know, when somebody's telling you 233 00:12:55,799 --> 00:13:01,200 who they are, listen, who is she? Who? Yeah? I 234 00:13:01,200 --> 00:13:04,600 mean they're authoritarians, and I think people need to really 235 00:13:04,639 --> 00:13:10,080 take them at face value, meaning they do believe this 236 00:13:10,200 --> 00:13:13,080 is not like you and I believe God. But they 237 00:13:13,120 --> 00:13:15,600 do believe that this is better for the citizenry. Why 238 00:13:15,879 --> 00:13:19,960 because they don't believe. They believe that some well, they 239 00:13:20,000 --> 00:13:22,000 don't believe in God, so they believe that some non 240 00:13:22,080 --> 00:13:24,519 God somewhere put them on the earth to guide the 241 00:13:24,559 --> 00:13:28,919 pleabs through their own ignorance and by the light of 242 00:13:28,960 --> 00:13:33,080 their intellect, they shall lead the people. And so when 243 00:13:33,080 --> 00:13:36,080 they say it's better for citizenry, they firmly believe that 244 00:13:36,159 --> 00:13:39,000 because they think it's better for citizenry. 245 00:13:39,279 --> 00:13:40,960 Speaker 1: This is smart. That gets me those act is you 246 00:13:41,039 --> 00:13:44,440 think that this is a smart lady. Okay, Satan is scheming, right, 247 00:13:44,720 --> 00:13:47,960 and he has the world's he has worldly wisdom, and 248 00:13:48,000 --> 00:13:52,320 he has a a spiritualism evil form. She is pitching 249 00:13:52,360 --> 00:13:59,639 this to us by using China, which communicates to me 250 00:13:59,759 --> 00:14:02,519 that she doesn't know that we've got the inner interwebs 251 00:14:02,559 --> 00:14:04,679 where we can know what's going on in China to 252 00:14:04,720 --> 00:14:07,840 a degree, and that this is going to not cause 253 00:14:07,879 --> 00:14:11,440 anybody any concern. And she thinks that we're going to 254 00:14:11,480 --> 00:14:14,879 hear this and go, Okay, well it's China, then it's 255 00:14:14,879 --> 00:14:18,600 good to go. So, yeah, they're authoritarian, but they're also 256 00:14:18,639 --> 00:14:22,720 the blind attempting to lead people who see. 257 00:14:21,679 --> 00:14:25,120 Speaker 3: Yeah, and I think that we have just found what 258 00:14:27,399 --> 00:14:29,840 adds up to being the Achilles Heel of the post 259 00:14:29,840 --> 00:14:32,679 World War two order, and certainly the Achilles Heel in NATO, 260 00:14:33,279 --> 00:14:39,919 which is people become far less skeptical of authoritarianism and 261 00:14:39,960 --> 00:14:43,559 tyranny when they don't have to pay the cost of 262 00:14:43,600 --> 00:14:49,919 their own freedom right and we have paid that cost, 263 00:14:50,120 --> 00:14:53,080 both in treasure and in blood for pretty much the 264 00:14:53,120 --> 00:14:57,840 Holy Europe for the last eighty years. And when you 265 00:14:58,000 --> 00:15:00,840 do that, it's kind of like it's kind of like 266 00:15:01,240 --> 00:15:05,679 raising kids in a way. Right, you want to protect 267 00:15:05,679 --> 00:15:08,919 your children, your allies, the people that but but at 268 00:15:08,960 --> 00:15:10,799 the same time you also know that you have to 269 00:15:10,879 --> 00:15:14,759 expose them to some hardship or that or that's gonna 270 00:15:14,840 --> 00:15:18,080 twist and it's gonna manipulate the way that they view 271 00:15:18,120 --> 00:15:20,799 the world and certainly the way that they prioritize and 272 00:15:20,879 --> 00:15:25,639 use assets. So you know, I'm not just chalking this 273 00:15:25,840 --> 00:15:28,840 all up to military spending and trade deals and tariffs 274 00:15:28,879 --> 00:15:31,639 and things like that, but I do think it is 275 00:15:31,720 --> 00:15:35,279 really interesting that you've got a continent full of people 276 00:15:35,840 --> 00:15:38,759 that seem to be far more concerned about Donald Trump 277 00:15:38,799 --> 00:15:43,240 than they are authoritarian authoritarianism and tyranny, and and oh, 278 00:15:43,279 --> 00:15:47,519 by the way, those same people haven't effectively haven't had 279 00:15:47,600 --> 00:15:50,720 to pay for their own defense for the better part 280 00:15:50,720 --> 00:15:53,919 of the last century and pay for their own defense, 281 00:15:53,960 --> 00:15:55,879 I mean both in lives and in money. 282 00:15:56,120 --> 00:15:56,279 Speaker 2: Yep. 283 00:15:56,399 --> 00:15:58,919 Speaker 3: So you know it's that I don't think that that's 284 00:15:58,919 --> 00:15:59,639 a coincidence. 285 00:16:00,080 --> 00:16:02,600 Speaker 1: I don't either, And I don't also that it's a conincidence. 286 00:16:02,720 --> 00:16:04,320 You know, I was finally forced to buy a new phone. 287 00:16:04,360 --> 00:16:09,559 You've seen my Apple iPhone eight right, crack screen and tape, 288 00:16:09,600 --> 00:16:13,279 so I have. I've got the sixteen. Now everybody can 289 00:16:13,360 --> 00:16:16,519 see the sixteen. Apple will not give up trying to 290 00:16:16,559 --> 00:16:19,840 get me to use Apple Pay. They will not give 291 00:16:19,919 --> 00:16:22,840 up trying to get me to use my retinas. They 292 00:16:22,840 --> 00:16:24,440 will not give up trying to get me to sign 293 00:16:24,519 --> 00:16:27,679 up to be protected through the medical devices. And in fact, 294 00:16:27,799 --> 00:16:30,919 they conned me when I signed. When I got this phone, 295 00:16:31,360 --> 00:16:33,120 I thought I was giving in my credit card to 296 00:16:33,159 --> 00:16:35,000 pay for apps, because there are some apps to which 297 00:16:35,039 --> 00:16:39,679 I subscribe, and so I scanned it and boom, hey, congratulations, 298 00:16:39,679 --> 00:16:43,480 you're an Apple Pay. So I had to go figure 299 00:16:43,480 --> 00:16:45,159 out how to get that card out of Apple Pay. 300 00:16:45,240 --> 00:16:47,639 I don't want to be an Apple Pay. I don't 301 00:16:47,639 --> 00:16:50,399 think it's a coincidence that they are combining this at 302 00:16:50,440 --> 00:16:52,919 the same time as there's just talk of this digital 303 00:16:52,919 --> 00:16:55,240 currency President Trump, of courses, all of crypto. This thing 304 00:16:55,279 --> 00:16:58,440 is launching in the Euros launching. I think they intend 305 00:16:58,559 --> 00:17:02,759 to get into relationship with the GUARD and the European Union. 306 00:17:02,960 --> 00:17:07,119 Why not make them the digital currency provider because they've 307 00:17:07,119 --> 00:17:09,240 got everything else. They've got the health metrics, they are 308 00:17:09,400 --> 00:17:12,680 everything else. They've got your communication from that device. That 309 00:17:12,799 --> 00:17:14,640 could be Apple saying yeah, actually, you're not going to 310 00:17:14,680 --> 00:17:17,240 be allowed to post that now. Maybe that's what Apple 311 00:17:17,279 --> 00:17:18,599 ce's coming up as their future. 312 00:17:19,680 --> 00:17:23,119 Speaker 3: Well, very possibly. And this is one of the reasons 313 00:17:23,200 --> 00:17:25,400 where you get into these questions. And I'm not in 314 00:17:25,440 --> 00:17:27,759 any way saying that I've got all the answers, but 315 00:17:27,839 --> 00:17:30,079 I think that we need to think about it, and 316 00:17:30,119 --> 00:17:35,480 we need to have some exploratory discussions, preferably bipartisan, preferably 317 00:17:35,599 --> 00:17:38,359 people that can all agree. You know, it wasn't too 318 00:17:38,440 --> 00:17:41,279 long ago, Todd where I remember that the left was 319 00:17:41,359 --> 00:17:44,119 really skeptical of corporate America. We were laughing the other day, 320 00:17:44,680 --> 00:17:48,799 I cannot believe I am currently living in an era 321 00:17:49,240 --> 00:17:54,240 where the hardcore left defends corporate big pharma Like that 322 00:17:54,400 --> 00:17:58,839 just blows my mind. Right, But you get what you're 323 00:17:58,920 --> 00:18:03,440 looking at. If we look at two corporations, okay, in 324 00:18:03,559 --> 00:18:09,160 Nvidia and Apple, could just those two corporations alone add 325 00:18:09,240 --> 00:18:12,720 up to about eight trillion dollars in market cap or 326 00:18:12,799 --> 00:18:19,599 effectively about one third yeah yeah, well no, no, no, yeah, 327 00:18:19,640 --> 00:18:22,839 one third a little more than more or a little 328 00:18:22,920 --> 00:18:26,480 less than one third of the entire output of the 329 00:18:26,559 --> 00:18:28,240 US economy two companies. 330 00:18:28,640 --> 00:18:28,799 Speaker 6: Yeah. 331 00:18:29,160 --> 00:18:30,799 Speaker 3: Right, So when you've got to when you've got a 332 00:18:31,240 --> 00:18:35,519 when you've got a country that is the world's large, 333 00:18:35,640 --> 00:18:39,880 largest in the history for being GDP economic output, wealth, riches, 334 00:18:39,880 --> 00:18:42,759 all that kind of stuff, and you've got a single 335 00:18:42,920 --> 00:18:46,839 country or a single one of those corporations and their 336 00:18:46,920 --> 00:18:49,880 market cap would be equivalent to ten to twelve percent 337 00:18:49,960 --> 00:18:53,480 the entire size of the economy, you have to start 338 00:18:53,599 --> 00:18:56,880 questioning and you have to start looking at our definition 339 00:18:56,960 --> 00:19:00,599 of a monopoly because one of the other depth phinicians 340 00:19:00,640 --> 00:19:04,039 that nobody ever really considered, because we thought creative destruction 341 00:19:04,119 --> 00:19:05,799 would take care of this, and in the past it 342 00:19:05,799 --> 00:19:09,599 would have because you didn't have the ability to instantaneously 343 00:19:09,680 --> 00:19:15,079 scale your business across the entire world. And one of 344 00:19:15,079 --> 00:19:17,440 my one of my one of my theories on why 345 00:19:17,480 --> 00:19:20,839 this has changed, that is because once you take the 346 00:19:20,880 --> 00:19:24,359 barriers to scaling a business over boundaries and borders. When 347 00:19:24,599 --> 00:19:28,559 when you take those limits away, whoever's got the deepest 348 00:19:28,640 --> 00:19:32,519 checkbook has an immediate advantage because what you've basically done 349 00:19:33,000 --> 00:19:36,480 is turned the entire world into an Oklahoma land rush. Right, So, 350 00:19:36,759 --> 00:19:41,279 so we need to start looking at monopolies not just 351 00:19:41,319 --> 00:19:45,279 in terms of percentages of sectors that they control, but 352 00:19:45,480 --> 00:19:48,839 the size of the business in comparison to the United States. 353 00:19:49,200 --> 00:19:52,440 And why do I say that, because at a certain point, 354 00:19:52,799 --> 00:19:54,759 the rest of the world, and I think for some 355 00:19:54,880 --> 00:19:58,240 of these tech corporations, you've already reached that point where 356 00:19:58,359 --> 00:20:00,920 where the rest of the world becomes more important to 357 00:20:00,920 --> 00:20:02,319 their cash flow than the US. 358 00:20:03,000 --> 00:20:05,680 Speaker 1: Exactly, well said, well said. 359 00:20:05,440 --> 00:20:10,799 Speaker 3: And when and we know that you cannot serve two masters. 360 00:20:11,119 --> 00:20:14,000 So when the majority of your profit, which is inevitable 361 00:20:14,000 --> 00:20:16,880 it's occurring right now, when the majority of your profit 362 00:20:16,960 --> 00:20:20,119 comes from overseas or god forbid, let's fast forward, when 363 00:20:20,119 --> 00:20:23,880 the majority of your profit comes from China. Are we 364 00:20:24,079 --> 00:20:26,240 still not going to put any checks and limits on 365 00:20:26,279 --> 00:20:30,759 you because we know, we know in the past Caterpillar 366 00:20:30,839 --> 00:20:34,680 couldn't do the Continental US dirty or they'd screw up 367 00:20:34,720 --> 00:20:37,880 eighty five percent of their orders. Right, But what if 368 00:20:37,920 --> 00:20:41,279 that's only fifteen percent of their orders now? Right, Totally 369 00:20:41,279 --> 00:20:46,160 different ballgame. And so we have to address this or literally, 370 00:20:46,559 --> 00:20:49,799 these companies will end up via the help of the 371 00:20:49,839 --> 00:20:54,079 authoritarian left. There's the irony. They will end up at 372 00:20:54,160 --> 00:20:59,440 the head of some Orwellian super corporate structure that or 373 00:20:59,480 --> 00:21:02,680 Well talked to about in nineteen eighty four. And you know, 374 00:21:02,759 --> 00:21:07,039 and and and all of that apocalyptic nightmarre stuff will come. 375 00:21:06,880 --> 00:21:09,079 Speaker 1: True, right, and the turnaround and take the country that 376 00:21:09,119 --> 00:21:11,519 built them, and they will eat us. And that's one 377 00:21:12,519 --> 00:21:16,359 exactly exactly. We're gonna talk here about Scott Bessent and 378 00:21:16,400 --> 00:21:18,359 he was looked at to replace Palace fed Scher. We'll 379 00:21:18,359 --> 00:21:22,359 talk about that. And the Bank of America CEO Brian 380 00:21:22,440 --> 00:21:25,240 moynahan had to sit there and hear an interview about 381 00:21:25,279 --> 00:21:29,519 President Trump accusing this guy of kissing Trump's behind. And 382 00:21:29,559 --> 00:21:32,000 we'll get to those things with Zach Abraham. Hey, Zach, 383 00:21:32,079 --> 00:21:34,279 have you seen this? I know you have bone Frog 384 00:21:34,319 --> 00:21:35,920 in the office and the coffee have you seen this 385 00:21:35,960 --> 00:21:40,920 particular bag. This is Extortion seventeen. I don't know if 386 00:21:40,920 --> 00:21:42,839 you can see this. I have to point another different 387 00:21:42,839 --> 00:21:43,279 camera for you. 388 00:21:44,000 --> 00:21:46,200 Speaker 3: Was that the same one that you showed last. 389 00:21:45,960 --> 00:21:49,039 Speaker 1: Week or it's that same one with the black cockhaill 390 00:21:49,039 --> 00:21:49,880 cop Oh? 391 00:21:49,920 --> 00:21:52,160 Speaker 3: Yeah, yeah, yeah, So this has been yeah. 392 00:21:52,359 --> 00:21:53,839 Speaker 1: Oh shoulduck not a black ugy shureduck? 393 00:21:53,839 --> 00:21:54,039 Speaker 6: Thank you. 394 00:21:54,319 --> 00:21:55,839 Speaker 1: So this will be the last week I'm showing this 395 00:21:55,920 --> 00:21:58,319 to you because we're going to bring in a different 396 00:21:58,319 --> 00:22:01,680 bag next week. So Bone Frog honors Navy Seals. It 397 00:22:01,680 --> 00:22:04,880 says in the back of God Country Team bone Frog. 398 00:22:05,039 --> 00:22:07,440 This insignia is not on this bag, there's no room 399 00:22:07,480 --> 00:22:09,680 for it, but the actual insignia of the Bone Frog. 400 00:22:10,640 --> 00:22:13,440 It indicates a fallen Navy Seal. On the side of 401 00:22:13,480 --> 00:22:18,119 this bag, there's the names of the special operators who 402 00:22:18,160 --> 00:22:20,079 were killed in the largest loss of life in the 403 00:22:20,119 --> 00:22:23,079 history of the Special Seal special Forces community, plus the 404 00:22:23,119 --> 00:22:27,559 service dog was killed in that particular event. There is 405 00:22:27,599 --> 00:22:30,079 an expedition on the back of all thirty eight people 406 00:22:30,119 --> 00:22:33,079 on boards twenty five American Special Operations personnel, five US 407 00:22:33,200 --> 00:22:36,480 National Guard, US Army Reserve crewman, seven Afghan commanders in 408 00:22:36,519 --> 00:22:39,039 one Afghan interpreter as well as the US military working dog. 409 00:22:39,880 --> 00:22:43,000 The details for Extortion seventeen are something you're gonna have 410 00:22:43,000 --> 00:22:46,160 to google because most people, like Tim who found the 411 00:22:46,200 --> 00:22:48,519 Bone Frog, he's a retired Navy seal who's a medic 412 00:22:48,519 --> 00:22:51,839 attached to the Seal Teams three three deployments, they can't 413 00:22:51,880 --> 00:22:56,119 talk about Extortion seventeen truthfully because of agreements with the 414 00:22:56,160 --> 00:22:59,920 Department of Defense. Google this and then understand why this 415 00:23:00,039 --> 00:23:03,720 vegas so important. This is a medium roast and he 416 00:23:03,799 --> 00:23:07,680 describes it this way Extortion seventeen. This single origin Samaritan 417 00:23:07,759 --> 00:23:10,880 roast is characterized by its full body now low acidity. 418 00:23:11,240 --> 00:23:13,079 His flavor is wild, rich and earthy, with a slight 419 00:23:13,160 --> 00:23:14,599 hint of chocolate, and they have to taste. My wife 420 00:23:14,599 --> 00:23:17,319 and I immediately tasted the chocolate. Make this the first 421 00:23:17,359 --> 00:23:18,799 bag you buy. If you've not tried it, go to 422 00:23:18,839 --> 00:23:21,799 Bonefrog Coffee dot com slash Todd use promo cod Todd 423 00:23:21,799 --> 00:23:24,240 at checkout. You get ten percent off your first purchase. 424 00:23:24,680 --> 00:23:27,039 If you've already had a bunch of frog and you 425 00:23:27,119 --> 00:23:31,119 love it, then stop being a stinking, filthy communist and 426 00:23:31,200 --> 00:23:34,440 subscribe as Bonefrog Coffee dot com slash tod promo code 427 00:23:34,400 --> 00:23:37,200 Todd for a fifteen percent off subscription coffee Plus. You 428 00:23:37,279 --> 00:23:42,839 are redeemed no longer a communist. So you like Scott Piscent, right, Yeah, 429 00:23:42,880 --> 00:23:46,000 I think he's pretty shure it Okay, So Scott Piscent 430 00:23:46,160 --> 00:23:49,720 was being looked at to replace Powell as FED share 431 00:23:50,359 --> 00:23:52,480 so that's not gonna happen. But if that had happened, 432 00:23:52,480 --> 00:23:53,640 would you have been happy, Zach? 433 00:23:54,880 --> 00:23:56,839 Speaker 3: Yeah, I think percent would have done a good job. 434 00:23:56,920 --> 00:23:59,359 I think that he Yeah, he fits the criteria of 435 00:23:59,759 --> 00:24:03,960 who I of who I think. I don't think the 436 00:24:04,000 --> 00:24:07,440 FED chair needs to actually be somebody rights that policy 437 00:24:07,519 --> 00:24:09,160 is made up of the FMC and they all get 438 00:24:09,200 --> 00:24:11,640 one vote. But you have to remake the FED. You 439 00:24:11,640 --> 00:24:14,720 need to get more practitioners like Thecent that actually understand 440 00:24:15,319 --> 00:24:18,160 you know, not just economic theory, but you know where 441 00:24:18,200 --> 00:24:19,000 the rubber meets. 442 00:24:18,839 --> 00:24:22,599 Speaker 1: The road, and practitioners versus theorists. And this is a 443 00:24:22,640 --> 00:24:24,799 big theme you have when you talk about the FED, 444 00:24:25,240 --> 00:24:29,319 because they keep doing things that should work and things 445 00:24:29,359 --> 00:24:33,240 that have never worked. Right, So who's what is the 446 00:24:33,279 --> 00:24:37,160 biggest difference you think between practitioners of finance, people like 447 00:24:37,240 --> 00:24:40,960 you Chief Investment Officer Bulwark Cupal management. Incidentally, Zax's podcast 448 00:24:41,079 --> 00:24:43,440 Know Your Risk Podcast dot com. It's also Rea can 449 00:24:43,519 --> 00:24:45,119 hook with them to have him take a look at 450 00:24:45,160 --> 00:24:48,319 your finances Know Your Risk podcast dot Com. What's the 451 00:24:48,359 --> 00:24:51,839 biggest difference between a practitioner like yourself and a pure 452 00:24:51,880 --> 00:24:52,880 theorist like Powell? 453 00:24:54,119 --> 00:24:56,599 Speaker 3: I mean, it was the first simple way to put 454 00:24:56,640 --> 00:25:01,039 it is, I have a running scoreboard. It tells both 455 00:25:01,160 --> 00:25:04,559 me and the entire world exactly how I'm doing at 456 00:25:04,599 --> 00:25:10,880 my job. So in that way, I really really envy 457 00:25:10,920 --> 00:25:18,319 the FED. You know well, because look, you and I 458 00:25:18,359 --> 00:25:20,240 have talked about this a long time, or you and 459 00:25:20,279 --> 00:25:22,400 I have talked about this multiple times. A perfect example 460 00:25:22,440 --> 00:25:26,359 of this is by the year twenty thirteen, I was 461 00:25:26,400 --> 00:25:29,160 forced to re examine every single thing that I held 462 00:25:29,200 --> 00:25:32,319 true or thought that I knew about economics due to 463 00:25:33,119 --> 00:25:37,400 the lack of inflation, the lack of wage growth. And 464 00:25:37,599 --> 00:25:39,240 this was coming out of the eight hundred and eighty 465 00:25:39,279 --> 00:25:41,440 billion TARP that we spent on TARP, coming out of 466 00:25:41,440 --> 00:25:46,000 a weight O nine, the institutional quantitative easing artificially zero 467 00:25:46,039 --> 00:25:49,359 percent interest rates, pumping money like crazy, all this stuff, 468 00:25:49,720 --> 00:25:52,279 and why are we not getting inflation the way that 469 00:25:52,319 --> 00:25:55,960 we thought of it? And so as an asset manager, 470 00:25:56,480 --> 00:25:58,039 you know, at the end of the day, you've got 471 00:25:58,079 --> 00:26:01,799 a report card in its asset prices. Right, well, defed 472 00:26:01,839 --> 00:26:03,680 doesn't have a report card. Everybody's like, yeah they do. 473 00:26:03,720 --> 00:26:05,640 It's the economy. Well yeah, how well have they done 474 00:26:05,640 --> 00:26:09,240 on that? Right? Not very good? Okay? So and then 475 00:26:09,279 --> 00:26:11,680 and then when it happens, what do they say, Well, 476 00:26:11,720 --> 00:26:14,160 we couldn't have foreseen this all. We couldn't have foreseen that, 477 00:26:14,319 --> 00:26:17,079 or we couldn't have foreseen this. And you're like, okay, 478 00:26:17,160 --> 00:26:20,440 you couldn't have foreseen and this this is literally what 479 00:26:20,480 --> 00:26:24,160 they'll tell you. Okay it. Two interesting things happened at 480 00:26:24,160 --> 00:26:26,039 the end of the nineties. Using theaight and O nine 481 00:26:26,160 --> 00:26:30,759 is an analogue, okay nine financial crisis. Two things happen. First, 482 00:26:31,720 --> 00:26:34,200 it was either ninety eight or ninety nine. You extended 483 00:26:34,279 --> 00:26:37,880 or you amended the Community Reinvestment Act, which then obligated 484 00:26:37,920 --> 00:26:41,680 Fanny and Freddie that fifty percent of all issue loans 485 00:26:41,720 --> 00:26:43,319 needed to go to go to subprime lenders. 486 00:26:43,400 --> 00:26:43,599 Speaker 6: Yep. 487 00:26:43,680 --> 00:26:43,880 Speaker 2: Right. 488 00:26:44,880 --> 00:26:48,880 Speaker 3: Within twelve to sixteen months of that, you repealed Glass Siegel, 489 00:26:48,960 --> 00:26:55,559 which mandated that all financial institutions, insurance, commercial investment, and 490 00:26:55,599 --> 00:26:58,880 traditional banking needed to be at separate entities. It was 491 00:26:58,920 --> 00:27:01,440 a It was a law was put in place after 492 00:27:01,519 --> 00:27:06,079 the after the nineteen twenty nine crash, and ever since 493 00:27:06,119 --> 00:27:08,319 that law was put into place in the early thirties, 494 00:27:08,359 --> 00:27:10,960 you never had a series of financial crisis. That law 495 00:27:11,039 --> 00:27:13,160 was repealed, I believe in ninety eight, it might have 496 00:27:13,200 --> 00:27:16,839 been at the beginning of ninety nine. Within nine years 497 00:27:16,839 --> 00:27:19,119 you have the second largest financial crisis in the history 498 00:27:19,119 --> 00:27:24,279 of the country. So that's where you'd sit there and 499 00:27:24,319 --> 00:27:26,519 look at the FED and go, what did you advise 500 00:27:26,599 --> 00:27:29,160 them on those laws? And the FED would be like, well, 501 00:27:29,200 --> 00:27:30,759 you know, we blah blah blah, you know, give you 502 00:27:30,799 --> 00:27:33,720 some nonsense, and you go, So what you what you 503 00:27:33,720 --> 00:27:35,559 were telling me is that you're in charge of the 504 00:27:35,720 --> 00:27:40,319 entire economy. You think it's a good idea to arbitrarily 505 00:27:40,519 --> 00:27:43,240 decide that fifty percent of all mortgages this shoot are 506 00:27:43,240 --> 00:27:46,000 going to go to people that remember when I when. 507 00:27:45,839 --> 00:27:49,000 Speaker 1: I say suprime, no ability to pay it back. 508 00:27:49,640 --> 00:27:56,599 Speaker 3: Right, And that definition has been built and constructed via 509 00:27:56,799 --> 00:28:00,359 actuaries and hard data for like the last one hundred 510 00:28:00,359 --> 00:28:03,920 and twenty years, right, So that would be like going 511 00:28:03,960 --> 00:28:07,000 against actuarial data on that kind of stuff. Would be 512 00:28:07,079 --> 00:28:08,720 like telling people all of a sudden, you know what, 513 00:28:08,759 --> 00:28:10,799 we actually think smoking makes you healthy. We don't care 514 00:28:10,799 --> 00:28:11,599 about that stuff. 515 00:28:11,960 --> 00:28:13,759 Speaker 1: We do the New York Times coming out and saying 516 00:28:13,880 --> 00:28:14,680 junk foods healthy. 517 00:28:15,400 --> 00:28:18,079 Speaker 3: Yeah, yeah, there you go, there you go. So these 518 00:28:18,119 --> 00:28:21,279 are the same people, then that will tell you, Okay, 519 00:28:21,519 --> 00:28:24,599 we are going to sit there and pull away the 520 00:28:24,640 --> 00:28:31,079 traditional metric that determines credit worthiness. Simultaneously, we're going to 521 00:28:31,200 --> 00:28:35,680 allow massive financial institutions to merge. Why is that important? 522 00:28:36,160 --> 00:28:40,319 That's important because when all of these financial institutions are 523 00:28:40,359 --> 00:28:44,279 separated and they try to go sell their toxic garbage 524 00:28:44,279 --> 00:28:47,839 to each other, they really look through it well and 525 00:28:47,960 --> 00:28:51,559 make sure they're not buying somebody's toxic garbage, and that 526 00:28:51,720 --> 00:28:54,200 keeps all. If they can't sell it to every ball 527 00:28:54,240 --> 00:28:58,119 their buddies on Wall Street, they're not gonna make it right. Well, 528 00:28:59,279 --> 00:29:01,519 as soon as you old Glass Seagul in ninety eight 529 00:29:01,680 --> 00:29:03,680 ninety nine, all of a sudden, what did you have 530 00:29:03,720 --> 00:29:05,240 in O eight o nine? You had all of these 531 00:29:05,400 --> 00:29:09,359 toxic concoctions and stuff? Why because it was all of 532 00:29:09,440 --> 00:29:12,079 Wall Street selling it to everybody off of Wall Street 533 00:29:12,200 --> 00:29:16,119 for the most part, So so and and the FED 534 00:29:16,160 --> 00:29:18,400 would like you to believe that there's no way they 535 00:29:18,440 --> 00:29:19,599 could have seen that coming. 536 00:29:22,160 --> 00:29:26,240 Speaker 1: And that's the that's the theorist versus the practitioner, right right. 537 00:29:26,079 --> 00:29:30,359 Speaker 3: Right, yes, because because if we're wrong, right, our business 538 00:29:30,480 --> 00:29:33,920 as well as our clients' lives get smoked. If the 539 00:29:34,000 --> 00:29:37,880 Fed's wrong, they still get to make five million dollars 540 00:29:37,920 --> 00:29:41,559 at speaking on speaking tours when they leave the FED, 541 00:29:41,599 --> 00:29:43,680 and they still get one hundred percent of their ending 542 00:29:43,799 --> 00:29:47,200 salary as a lifetime pension, so they don't have a 543 00:29:47,279 --> 00:29:50,119 report card. They never have to get it right. 544 00:29:50,519 --> 00:29:52,480 Speaker 1: Yeah, and you I think you said five of the 545 00:29:52,519 --> 00:29:55,480 past six years, you guys are ordered and you can 546 00:29:55,480 --> 00:29:57,240 go look at those results. 547 00:29:57,079 --> 00:29:59,720 Speaker 3: Right, yeah, yeah, yeah, yeah, we started, Yeah, we started 548 00:29:59,759 --> 00:30:03,400 having audited performance results in twenty twenty. 549 00:30:03,559 --> 00:30:06,319 Speaker 1: Yeah. And the FED, of course, you know, I've always 550 00:30:06,400 --> 00:30:09,920 admired the fact that they're so transparent about not being audited. 551 00:30:10,960 --> 00:30:14,119 They're the one entity that can't be audited. It's like 552 00:30:14,160 --> 00:30:16,279 the teachers' unions will say, oh, no, you can't have 553 00:30:16,279 --> 00:30:20,119 performance paying teachers. Why well, because you know, they don't 554 00:30:20,160 --> 00:30:22,079 have the same student base. Some students come in and 555 00:30:22,119 --> 00:30:24,359 they can read well, some can't. Oh you mean like 556 00:30:24,400 --> 00:30:27,920 a sales professional. They go into a district, some people 557 00:30:28,240 --> 00:30:30,319 are going to grind you down on price. Others aren't. 558 00:30:30,359 --> 00:30:32,240 Some people that had a bad experience at the company're 559 00:30:32,240 --> 00:30:35,160 not your fault, or like a oh, I don't know. 560 00:30:36,039 --> 00:30:38,640 Let's say a talk show host. Well, there's some people 561 00:30:38,640 --> 00:30:40,400 that can't get up at seven and am to listen 562 00:30:40,440 --> 00:30:44,839 to you. And so it's we're the one thing that 563 00:30:44,880 --> 00:30:47,160 there can't be performance pay, and the FED is the 564 00:30:47,160 --> 00:30:49,039 one entity that can't be audited. I don't even know 565 00:30:49,079 --> 00:30:51,200 if there's a big reason to play this other than 566 00:30:51,200 --> 00:30:54,160 I found that amusing. I want us to watch together 567 00:30:54,319 --> 00:30:57,359 or listen. I guess I don't like the Bank of 568 00:30:57,400 --> 00:30:59,920 America because they, let's see, let's count up the reasons, 569 00:31:00,880 --> 00:31:03,920 low interest rate loans sometimes zero interest rate to illegal immigrants, 570 00:31:04,119 --> 00:31:08,640 align them to ship money overseas, debanking conservatives calling themselves 571 00:31:08,720 --> 00:31:10,680 Bank of America. All this is going on. So I'll 572 00:31:10,680 --> 00:31:11,839 show this to you in just a second. 573 00:31:11,920 --> 00:31:12,119 Speaker 2: Zac. 574 00:31:12,599 --> 00:31:15,279 Speaker 1: Look, it takes money, big money to go do big 575 00:31:15,319 --> 00:31:19,519 money in Hollywood. Angel Studios started small, but they're not 576 00:31:19,599 --> 00:31:22,200 small anymore. And one of the things they're continuing to 577 00:31:22,240 --> 00:31:26,119 do is stay small minded, not in terms of creativity, 578 00:31:26,440 --> 00:31:28,720 but in terms of who actually runs a place. When 579 00:31:28,720 --> 00:31:32,079 you become an Angel Studio Premium Guild member, you vote 580 00:31:32,920 --> 00:31:35,519 on the movies and stories that they tell and they distribute. 581 00:31:35,559 --> 00:31:37,880 And there's a new one that's come up thumbs up 582 00:31:37,880 --> 00:31:41,119 on this. It's called Testament. This thing got voted up. 583 00:31:41,559 --> 00:31:45,000 Now it's out. This takes the Book of Acts from 584 00:31:45,079 --> 00:31:48,119 the time after Jesus extended back to Heaven and it 585 00:31:48,200 --> 00:31:51,759 transplants that story into a timeline like the one in 586 00:31:51,799 --> 00:31:56,200 which we live. Surveillance state, censorship state, a state that 587 00:31:56,400 --> 00:32:01,160 hates the truth. So watch the apostles go and try 588 00:32:01,200 --> 00:32:04,440 to spread the truth of Jesus Christ in that environment. 589 00:32:05,000 --> 00:32:08,079 Now as you're watching this, take your own temperature. Are 590 00:32:08,119 --> 00:32:10,960 you doing it? You live in a censorship state, you 591 00:32:11,039 --> 00:32:13,839 linder surveillance state. Are you actually spreading the word of 592 00:32:13,920 --> 00:32:17,000 Jesus or are you scared and maybe not doing it? 593 00:32:17,720 --> 00:32:20,839 So Testament, go stream this right now. Go to angel 594 00:32:20,880 --> 00:32:23,400 dot com slash Todd become a Premium Angel Studio as 595 00:32:23,440 --> 00:32:26,559 Guild member. You can stream Testament immediately, can stream their 596 00:32:26,559 --> 00:32:28,839 fan creative programs. You get to vote on all the 597 00:32:28,880 --> 00:32:31,680 shows that they promote and distribute and make, and of 598 00:32:31,720 --> 00:32:34,240 course you get two free tickets to all of the 599 00:32:34,240 --> 00:32:37,880 theatrical releases. It's angel dot com slash Todd. So here's 600 00:32:37,920 --> 00:32:40,799 what happened to Brian moynihan. Poor guy sitting around doing nothing, 601 00:32:40,960 --> 00:32:43,400 not harming anybody other than all of America. With the 602 00:32:43,400 --> 00:32:44,720 policies at Bank of America. 603 00:32:44,960 --> 00:32:47,279 Speaker 7: He gets to sit and listen to this because we 604 00:32:47,279 --> 00:32:51,240 talked to President Trump squat box about this executive order 605 00:32:51,279 --> 00:32:56,680 that he's planning around banks who he thinks discriminated against conservatives, 606 00:32:57,160 --> 00:32:59,119 and your name came up, and so I just wanted 607 00:32:59,160 --> 00:33:01,440 to show you what he said and wanted to get 608 00:33:01,480 --> 00:33:03,240 your reaction to that. 609 00:33:05,279 --> 00:33:08,680 Speaker 6: What happens is I call a Bank of America routinely, 610 00:33:08,720 --> 00:33:10,920 because when I was president, this was after I got out. 611 00:33:11,519 --> 00:33:15,160 I call a Bank of America routinely, and I speak 612 00:33:15,200 --> 00:33:17,359 to him, and I speak to a couple of people, 613 00:33:17,400 --> 00:33:19,559 and they have a zero interest. 614 00:33:19,759 --> 00:33:23,039 Speaker 3: Brian was kissing my ass. 615 00:33:22,720 --> 00:33:25,519 Speaker 6: When I was president, and when I called him after 616 00:33:25,559 --> 00:33:29,960 I was president to deposit a billion dollars plus and 617 00:33:30,000 --> 00:33:32,480 a lot of other things, more importantly to open accounts, 618 00:33:32,480 --> 00:33:35,880 and he said, we can't do it, we can't do it. 619 00:33:38,960 --> 00:33:42,000 Speaker 7: Yes, were you watching TV when this was happening. 620 00:33:42,119 --> 00:33:44,759 Speaker 8: So I got up early because we're on East Coast time. 621 00:33:44,799 --> 00:33:47,279 I was working out and I was watching your wonderful 622 00:33:47,319 --> 00:33:49,599 show and he came on, and I'm telling you, I'm 623 00:33:49,599 --> 00:33:51,279 still trying to unsee some of the visuals that he 624 00:33:51,319 --> 00:33:53,799 created with his commentary. But look, the President's after the 625 00:33:53,880 --> 00:33:56,519 right thing, which is the laws, rules and regulations around 626 00:33:56,519 --> 00:34:01,119 our industry became used to cause things to happen. This 627 00:34:01,440 --> 00:34:05,400 was bsaml was kyc whether it's reputational risk, and you 628 00:34:05,400 --> 00:34:07,519 hear Tim Scott quote about it. It is right to 629 00:34:07,519 --> 00:34:09,079 go look at these rules because the end of the day, 630 00:34:09,800 --> 00:34:12,239 they are causing decisions to be made that can be 631 00:34:12,280 --> 00:34:14,039 looked at in retrospect differently. 632 00:34:14,119 --> 00:34:16,199 Speaker 1: We should get these rules, right, Zach. When he's talking 633 00:34:16,239 --> 00:34:20,000 about reputational risk, was there ever a law that said 634 00:34:20,039 --> 00:34:23,320 you can't loan or have bank accounts opened by conservatives? 635 00:34:23,440 --> 00:34:26,400 Or was he talking about the good old fashion change 636 00:34:26,559 --> 00:34:28,920 they made to try to pressure Americans to do the 637 00:34:29,000 --> 00:34:31,639 right thing. There was never a law that way. 638 00:34:32,719 --> 00:34:40,639 Speaker 3: No. So this when I talk about the regulatory environment 639 00:34:40,760 --> 00:34:49,079 becoming really unhinged and becoming is something that's actually working 640 00:34:49,119 --> 00:34:53,360 against its original look. And when I say the vast 641 00:34:53,400 --> 00:34:56,360 majority of people at the regulatory bodies, and by vast 642 00:34:56,400 --> 00:34:59,480 majority I mean well over fifty percent at the SEC, 643 00:34:59,800 --> 00:35:02,800 at the EPA, the vast majority of those people work 644 00:35:02,880 --> 00:35:04,840 there and took a job there from the beginning because 645 00:35:04,840 --> 00:35:06,840 they believe in the mission to some degree and they 646 00:35:06,840 --> 00:35:09,639 want to do the right thing right. The issue comes 647 00:35:09,679 --> 00:35:13,239 at the top, the structure and the leadership. Most importantly, 648 00:35:13,280 --> 00:35:17,840 the incentives. The incentives of regulatory bodies are not at 649 00:35:17,880 --> 00:35:20,519 all what people think they are. And the problem with 650 00:35:20,599 --> 00:35:24,880 these regulations is they've gotten so global and so ubiquitous, 651 00:35:24,880 --> 00:35:31,039 meaning the regulators got smart and quit writing regulations too specifically. 652 00:35:31,519 --> 00:35:31,760 Speaker 2: Right. 653 00:35:31,800 --> 00:35:34,719 Speaker 3: So, for instance, I hadn't even thought of that, and 654 00:35:34,840 --> 00:35:37,119 sort of I heard one a hand talk about KYC, 655 00:35:37,320 --> 00:35:42,639 which means know your client. Okay, the way that's written again, 656 00:35:42,679 --> 00:35:44,840 when you look at the regulation, it makes sense. You 657 00:35:44,880 --> 00:35:46,880 want to make sure that your client is not some 658 00:35:47,079 --> 00:35:52,800 foreign entity, some isis person right, some Irish Republic army 659 00:35:52,880 --> 00:35:54,840 right IRA back in the day, kind of for an 660 00:35:54,880 --> 00:35:57,199 eighties nineties reference. But you want to make sure that 661 00:35:57,239 --> 00:36:01,320 you're not laundering money for the cartel, right, know your client, but. 662 00:36:01,239 --> 00:36:04,079 Speaker 1: They were wandering money for the cartels well. 663 00:36:03,920 --> 00:36:06,440 Speaker 3: Yeah, I mean I didn't the CIA and the FBI 664 00:36:06,480 --> 00:36:10,880 get a pass, so yeah, yeah, they gonna do that apologize. Yeah, 665 00:36:10,920 --> 00:36:15,079 so so, but the way they're written, it's it's not 666 00:36:15,440 --> 00:36:19,800 okay if the person did this, they're definitely this. It's 667 00:36:20,000 --> 00:36:24,000 way more ambiguous than that. So the minute he said 668 00:36:24,000 --> 00:36:26,360 to know your client stuff, I started laughing and went, 669 00:36:27,039 --> 00:36:32,079 when you look at the regulation, it's totally it's totally subjective, right, 670 00:36:32,159 --> 00:36:34,559 So you could sit there and go, well, we weren't 671 00:36:34,559 --> 00:36:38,320 comfortable with his answer on section three, Part D and 672 00:36:38,599 --> 00:36:40,960 we just didn't feel and you look at that, and 673 00:36:41,000 --> 00:36:45,199 then that's business entities in more than three different legal jurisdictions, 674 00:36:45,239 --> 00:36:48,039 blah blah, and then the bank legally can go now, 675 00:36:48,119 --> 00:36:51,000 we just don't feel comfortable via KYC or know your 676 00:36:51,039 --> 00:36:54,679 Client regulations. And you think about that and go, you 677 00:36:54,719 --> 00:36:58,760 want to know how a regulatory body uses non right, 678 00:36:59,039 --> 00:37:06,000 non congress nationally legislated rules to box people American citizens 679 00:37:06,519 --> 00:37:10,760 out of the US system. No legal regulation should be 680 00:37:11,079 --> 00:37:16,760 able to box a legal US citizen outside of the 681 00:37:16,920 --> 00:37:20,400 US system, because anything that can do that is by 682 00:37:20,480 --> 00:37:26,599 definition a law. It must be passed via legislation via Congress. 683 00:37:27,039 --> 00:37:31,360 So it's just to me, that's a perfect example. I'm 684 00:37:31,400 --> 00:37:35,559 not surprised by Moynihan's reaction. He's not the CEO of 685 00:37:35,639 --> 00:37:39,800 Bank of America. He's a He's a regional vice president 686 00:37:39,840 --> 00:37:43,719 for the Treasury, right, meaning the head of these Wall 687 00:37:43,719 --> 00:37:46,320 Street banks. They're no longer the head of Wall Street 688 00:37:46,320 --> 00:37:49,960 banks who runs the Wall Street banks, the FED, who 689 00:37:50,039 --> 00:37:53,360 effectively runs the Fed. I mean, the Fed's got some autonomy, 690 00:37:53,400 --> 00:37:55,159 but you know, the Treasury's got a big say in 691 00:37:55,199 --> 00:37:58,559 that as well. But these Wall Street bosses, they're just 692 00:37:58,719 --> 00:38:01,880 products of the system. They're gonna talk nice about Trump 693 00:38:01,880 --> 00:38:04,760 when he's not in there, and when the Biden administration 694 00:38:04,880 --> 00:38:07,639 wants to come in and box Trump out, they're gonna 695 00:38:07,679 --> 00:38:10,199 say yes. And if they don't, they lose their job. 696 00:38:10,320 --> 00:38:13,480 Those guys, they are no different than senators at this point. 697 00:38:13,639 --> 00:38:15,840 Speaker 1: Yeah, well said, well said. Always good to have you 698 00:38:15,880 --> 00:38:17,960 on Know Your riskpodcast dot com. Thank you for the 699 00:38:18,000 --> 00:38:20,920 wise counsel. My brother, I'm geared up for another trip 700 00:38:20,960 --> 00:38:22,840 to Mexico. Would love it if we could get our 701 00:38:22,840 --> 00:38:25,960 families down there together, man, I'd love to do that. 702 00:38:26,000 --> 00:38:28,519 I'm looking October this time. Just go golf, man, I mean, 703 00:38:28,559 --> 00:38:30,119 I don't I think the stem cells are doing. We'll 704 00:38:30,119 --> 00:38:30,679 just go golf. 705 00:38:31,639 --> 00:38:33,880 Speaker 3: Well, no, I do that. My wife's not gonna want 706 00:38:33,920 --> 00:38:35,840 to just golf. She's gonna want to hit up that clinic. Man. 707 00:38:37,920 --> 00:38:39,760 Speaker 1: Okay, we're cooking that up and so we'll make something 708 00:38:39,760 --> 00:38:41,679 like that happen. Great to see. If my brothers say 709 00:38:41,719 --> 00:38:44,079 hi to the family, and God bless you. This is 710 00:38:44,079 --> 00:38:46,800 the Todd hermersheaw please go be well, be strong, be kind. 711 00:38:46,840 --> 00:38:49,679 Remember it's not money, but the love of money that's 712 00:38:49,679 --> 00:38:52,599 the roots of all evil. And go make a decision 713 00:38:52,599 --> 00:38:55,400 to follow Lord Jesus. Remember I get to celebrate, to 714 00:38:55,400 --> 00:38:57,039 go home and see my beloved wife.