Speaker 1: So as I sat down to talk with Zach Abraham,
Chief investment Officer Bower Capital Management, I learned that there's
some new products at Apple, and they are world changing.
This is going to change the landscape of technology forever.
No longer do you need a phone. In fact, all
you need to do is to rub your nose and
say the magic words and you're connected via phone. Unbelievable technology.
Zach Abraham joins us through the help of God Almighty.
Speaker 2: But Todd Herman Show is one percent disapproved by big
pharma technocrats in tyrone sabranware from the high mountains of
Free America. Here's the Emerald City exile Todd Herman.
Speaker 1: Today is the day the Lord has made, and these
are the times to which God has the said we
shall live. My friend and brother, Chief investment officer Bower
Capital Management jo on the Todderman Show. Welcome Zach, good
to see you. Good to see you sat down. You
know we're recording this on Wednesday, and just this amazing
new series of technology releases from Apple. This tape that
you can actually put on your wall and then it
grows into paint and coats your entire house and a
new color I don't know where they come up with
these ideas. Because I heard that Apple's stock was rallying,
so it has to be new tech. So what what
are the new inventions?
Speaker 3: Well, on the on the docket, they're coming out with
this incredible new cell phone. It's really thin and you
can fold it. What. Oh, wait a second, that's what samnsung.
Oh wait like five years ago. Wait a second, that
can't be it. Hold on, hold on, hold on, they
got to teleport. No, here's what's funny about this, Todd.
We It's funny because I did. I had no idea
that you were going to ask about Apple today. Yeah,
but I was talking to my head of research on
phone this morning, you know, just doing our morning call
going over things, and we had a serious discussion about
how we never thought that the market could get this
dumb and look and when I say that, like, you know,
I hate it when people say, oh, something's rallying for
this reason or something's rallying for that reason. How do
you know there isn't somebody buying a big block of
stock that knows something you don't, Right, There's always these
other contingencies. But every once in a while you run
into a stock like Apple that is one of the
biggest stocks in the world, one of the hardest to
manipulate because of its size, all that kind of stuff,
and out of the blue, on a relatively flat and
actually negative tape, it just shoots up five percent and
then on that same day you get this headline that
comes out. Right, So with a stock like that, it's
pretty self evident. Oh, it's rallying because of this news.
Here's the irony. Apple up one what is it, one
hundred and fifty billion dollars in market cap because they're
going to spend one hundred billion dollars to have lower
margin to products. That's the news. That's the news. So yeah,
because okay, they're going to invest one hundred billion dollars
to increase manufacturing here in the United States. Whatever moves
from China to the United States, even with even with
tariffs in place, is going to be a higher costed right,
And what Apple is probably doing built into that deal
is some some concession where if they build a certain
amount here, they'll lower the tariffs on the other side.
My whole point saying that when you look at a
company like Apple, news like that should probably be and
not to be unfair to them. News like that can
be would be a non sequitor. It wouldn't make me
want to sell the stock if I owned it. It
wouldn't make me want to buy the stock if I
owned it. Watching it drive a company that's worth three
point two trillion dollars up almost six percent on the session,
though again, think you've got to think about how big
that number is. Because they're gonna spend one hundred billion
dollars and have lower margin products built here in the
United States. The value of the company pops almost two
hundred billion dollars on a single day.
Speaker 1: That's just disconnected from reality, and it continues to be.
And could this be someone who wants to support the
presidents and what support what he's doing. Could it be
that they go out and make a big buy because
oh what do they care? They make a big stock,
buy a big block of this stuff that can show, oh,
look this is good.
Speaker 3: No, I think the reality is worse what I think? No,
And I mean this, and I've talked about it and
we'll keep talking about it, just because every every unsustainable
bubble built on the wrong things. And look, I'm not
calling the whole stock market a bubble. I don't think
the whole stock market is a bubble. I think that
there are tons of bubbles in it, though. And what's
interesting about this period of time, usually your biggest stocks
pardon me, oh I got it, yep, sorry, man, I
need a cough button here. Swallowed a fly or something, Yeah,
I think I'm good.
Speaker 1: Swallow a spider.
Speaker 3: Yeah, well, I mean my wife. Yeah, my wife would
probably prefer that she hates the spiders. But so when
you're when you look at when you're you know, when
you actually examine those numbers and you're sitting there going, okay,
hold on a second. So you've got a company its
growth is almost completely reliant on their services. So for
existing clients, because they're not really growing, their main flagship
product is losing market share on an annual basis. And
they're going to cut a trade deal which is going
to require them to produce their most profitable product at
a lower margin, and that pushes you up two hundred
billion dollars. And when you look throughout the market, like
I was saying, you see so many of these microbubbles.
The thing that's concerning to us is what the long
term implications of this stuff are and and but in
the most immediate the reason I think that you are
seeing these anomalies is because you have a record level
of retail participation in this market, and it's not even close.
And that level of retail involvement is accompanied with the
highest levels of retail debt margin or margin debt, and
option utilization. So not only do you have the highest
amount of retail involvement and que and quite frankly, the
stock market acts like that. Okay, So why would Apple
go up five and a half to six percent on
news like that today? Because amateurs are driving?
Speaker 2: Okay?
Speaker 3: And yeah, why is a stock like Palanteer trading at
one hundred and five times sales because amateurs are driving?
Why is Tesla creating at one hundred and ninety times earnings?
Because amateurs are driving? And all they've seen are these
names work for fifteen years. And so when you see
some work for fifteen years, it becomes gospel, right, And
so what do you do when you what do you
do when you identify a can't lose investment? You lever
up to the hilt and wade into it. So what
it's created? And I have no idea, Like I said,
I know for a fact that when these and it's
not like you're saying something bad has to happen, Apple
will will return to an intrinsic value, and that intrinsic
value is probably fifty to sixty percent lower than it's
currently trading if if their business does not continue to deteriorate.
Now there's some talk of the move being today again
full disclod here. There's some people saying that it's because
news came out over the weekend that Apple was developing
its own AI search engine. But didn't Apple release that
same news three years ago?
Speaker 2: Right? Right?
Speaker 3: Like, didn't Apple just ignore it? Wasn't the launch of
their AI search engine on their new iPhone that was
supposed to be the AI iPhone. Wasn't that supposed to be? That?
Wasn't Apple going to launch Apple TV? Wasn't Apple considering
getting in the vehicle game? Wasn't Apple going to put
out the best VR headset on the market?
Speaker 2: Right?
Speaker 3: Did they succeed at any of those? No? So then
I'd sit there and go, Okay. So Apple says they're
going to develop something, and for the first time in
fourteen years, you're gonna think it's going to be a winner.
I'm going to take the other side of that bet,
especially at this The other side of it is, especially
at this valuation. If I'm sitting there looking at Apple
at fifteen or sixteen times earnings, I might want to
roll the dice on that. Yeah, you know, they could
buy backstock and pay some dividends and things like that.
But that's the thing that's really mind blowing, Todd is
you look across this market and you see it just
a complete lack of uniformity. You see a complete lack
of discipline as it relates to pricing and value. You
see some stocks that are just heads scratchingly stupid, cheap
or expensive, I mean, and you see stocks on the
other side of it. It's really it's really bizarre. And
I think the stock market has kind of begin to
be a mirror of culture, which is nobody really knows
which ends up, and everybody's having their own party.
Speaker 1: If a man can be a woman, then a stock
at one hundred and fifty times earnings can be whatever
you need it to be. Well said, And let me
point this out as well. The medical sector in America.
You think the medical sector in America is a healthy sector.
I don't and I'll tell you why. Because so much
of its force smoking mirrors, you're forced to do these things.
Take for instance, this performance of back surgeries versus the
stem cells at Renew so Renew Healthcare in Mexico, where
Zach is gone, I've gone. I got it in my back,
he got in his knees. I've been there three times.
I've sent and you know Mark and Brandlin. I sent
my dear friends who had our life group there. The
the performance of back surgeries includes about a third of
these surgeries end up with follow ups follow ups. I
didn't say follow up surgery, I said follow ups. So
a second, third surgery, maybe fourth. If you're being told
that this is your future because you're having trouble bending
over or picking up your grandkids or reaching up high,
are you sure you don't want to check with Renew first?
Are you sure you don't want to use their ethically
gathered stem cells only from umbilical cores at the world
class lab, the biggest hyperbaric chamber in North America, the
most sure science to make sure that these are the
very best stem cells. Or maybe you could take a
shot at like your bud who's a chiropractor, up where
you live. Who can get a bunch of stem cells
from whomever frozen, shipped across the country and stored wherever.
I guess you could do it that way. Check out
renew It's our e n ue dot Healthcare telling me
are part of the Todd Hermannshaw family. They will tell
you if they can help you avoid surgery and don't
roll the dice with this or that chiropractor or this
lady on the street who bought some stem cells and
the frozen and that they're in their two years. They
know everybody that they work with. They know the moms,
they know the babies, they know their health. It's r
E n ue dot Healthcare. So, Zach, here's another form
of just to me astonishment. Apple. Clearly the stock is pumped.
Clearly to me, it looks like it's way too high.
Same thing with Paltie. You just said this all tesla,
and yet it's right there in the open. Anybody can
observe it. Anybody can observe what Christine Legard, president of
the European Central Bank, says. She's talking about the digital
euro rollout. Listen to how she tries to get us
excited for this.
Speaker 4: Many people are a little vollied about what will happen
to them with take hero Can you encourage them? Why
is the euro coats of people like you like me?
Speaker 5: A digital currency where it has been piloted and there
is only one which is clearly now launched in a
in a very small country, but it is piloted on
a fairly large scale in China, is of huse and
of service to all citizens. So it is not something
that is good for the elite, or is good for
the young, or is good for some versus others. If
it is well done and if it is well implemented,
it would be of service to all citizens.
Speaker 1: She is explaining that a country that can take your
currency from you for being insufficiently supportive of the government
or being insufficiently supportive of its policies with their digital
currency is of service to all citizens. This isn't a
tool of the elite, Zach. She said that and maybe
even meant it.
Speaker 3: Yeah. I think she You know, when somebody's telling you
who they are, listen, who is she? Who? Yeah? I
mean they're authoritarians, and I think people need to really
take them at face value, meaning they do believe this
is not like you and I believe God. But they
do believe that this is better for the citizenry. Why
because they don't believe. They believe that some well, they
don't believe in God, so they believe that some non
God somewhere put them on the earth to guide the
pleabs through their own ignorance and by the light of
their intellect, they shall lead the people. And so when
they say it's better for citizenry, they firmly believe that
because they think it's better for citizenry.
Speaker 1: This is smart. That gets me those act is you
think that this is a smart lady. Okay, Satan is scheming, right,
and he has the world's he has worldly wisdom, and
he has a a spiritualism evil form. She is pitching
this to us by using China, which communicates to me
that she doesn't know that we've got the inner interwebs
where we can know what's going on in China to
a degree, and that this is going to not cause
anybody any concern. And she thinks that we're going to
hear this and go, Okay, well it's China, then it's
good to go. So, yeah, they're authoritarian, but they're also
the blind attempting to lead people who see.
Speaker 3: Yeah, and I think that we have just found what
adds up to being the Achilles Heel of the post
World War two order, and certainly the Achilles Heel in NATO,
which is people become far less skeptical of authoritarianism and
tyranny when they don't have to pay the cost of
their own freedom right and we have paid that cost,
both in treasure and in blood for pretty much the
Holy Europe for the last eighty years. And when you
do that, it's kind of like it's kind of like
raising kids in a way. Right, you want to protect
your children, your allies, the people that but but at
the same time you also know that you have to
expose them to some hardship or that or that's gonna
twist and it's gonna manipulate the way that they view
the world and certainly the way that they prioritize and
use assets. So you know, I'm not just chalking this
all up to military spending and trade deals and tariffs
and things like that, but I do think it is
really interesting that you've got a continent full of people
that seem to be far more concerned about Donald Trump
than they are authoritarian authoritarianism and tyranny, and and oh,
by the way, those same people haven't effectively haven't had
to pay for their own defense for the better part
of the last century and pay for their own defense,
I mean both in lives and in money.
Speaker 2: Yep.
Speaker 3: So you know it's that I don't think that that's
a coincidence.
Speaker 1: I don't either, And I don't also that it's a conincidence.
You know, I was finally forced to buy a new phone.
You've seen my Apple iPhone eight right, crack screen and tape,
so I have. I've got the sixteen. Now everybody can
see the sixteen. Apple will not give up trying to
get me to use Apple Pay. They will not give
up trying to get me to use my retinas. They
will not give up trying to get me to sign
up to be protected through the medical devices. And in fact,
they conned me when I signed. When I got this phone,
I thought I was giving in my credit card to
pay for apps, because there are some apps to which
I subscribe, and so I scanned it and boom, hey, congratulations,
you're an Apple Pay. So I had to go figure
out how to get that card out of Apple Pay.
I don't want to be an Apple Pay. I don't
think it's a coincidence that they are combining this at
the same time as there's just talk of this digital
currency President Trump, of courses, all of crypto. This thing
is launching in the Euros launching. I think they intend
to get into relationship with the GUARD and the European Union.
Why not make them the digital currency provider because they've
got everything else. They've got the health metrics, they are
everything else. They've got your communication from that device. That
could be Apple saying yeah, actually, you're not going to
be allowed to post that now. Maybe that's what Apple
ce's coming up as their future.
Speaker 3: Well, very possibly. And this is one of the reasons
where you get into these questions. And I'm not in
any way saying that I've got all the answers, but
I think that we need to think about it, and
we need to have some exploratory discussions, preferably bipartisan, preferably
people that can all agree. You know, it wasn't too
long ago, Todd where I remember that the left was
really skeptical of corporate America. We were laughing the other day,
I cannot believe I am currently living in an era
where the hardcore left defends corporate big pharma Like that
just blows my mind. Right, But you get what you're
looking at. If we look at two corporations, okay, in
Nvidia and Apple, could just those two corporations alone add
up to about eight trillion dollars in market cap or
effectively about one third yeah yeah, well no, no, no, yeah,
one third a little more than more or a little
less than one third of the entire output of the
US economy two companies.
Speaker 6: Yeah.
Speaker 3: Right, So when you've got to when you've got a
when you've got a country that is the world's large,
largest in the history for being GDP economic output, wealth, riches,
all that kind of stuff, and you've got a single
country or a single one of those corporations and their
market cap would be equivalent to ten to twelve percent
the entire size of the economy, you have to start
questioning and you have to start looking at our definition
of a monopoly because one of the other depth phinicians
that nobody ever really considered, because we thought creative destruction
would take care of this, and in the past it
would have because you didn't have the ability to instantaneously
scale your business across the entire world. And one of
my one of my one of my theories on why
this has changed, that is because once you take the
barriers to scaling a business over boundaries and borders. When
when you take those limits away, whoever's got the deepest
checkbook has an immediate advantage because what you've basically done
is turned the entire world into an Oklahoma land rush. Right, So,
so we need to start looking at monopolies not just
in terms of percentages of sectors that they control, but
the size of the business in comparison to the United States.
And why do I say that, because at a certain point,
the rest of the world, and I think for some
of these tech corporations, you've already reached that point where
where the rest of the world becomes more important to
their cash flow than the US.
Speaker 1: Exactly, well said, well said.
Speaker 3: And when and we know that you cannot serve two masters.
So when the majority of your profit, which is inevitable
it's occurring right now, when the majority of your profit
comes from overseas or god forbid, let's fast forward, when
the majority of your profit comes from China. Are we
still not going to put any checks and limits on
you because we know, we know in the past Caterpillar
couldn't do the Continental US dirty or they'd screw up
eighty five percent of their orders. Right, But what if
that's only fifteen percent of their orders now? Right, Totally
different ballgame. And so we have to address this or literally,
these companies will end up via the help of the
authoritarian left. There's the irony. They will end up at
the head of some Orwellian super corporate structure that or
Well talked to about in nineteen eighty four. And you know,
and and and all of that apocalyptic nightmarre stuff will come.
Speaker 1: True, right, and the turnaround and take the country that
built them, and they will eat us. And that's one
exactly exactly. We're gonna talk here about Scott Bessent and
he was looked at to replace Palace fed Scher. We'll
talk about that. And the Bank of America CEO Brian
moynahan had to sit there and hear an interview about
President Trump accusing this guy of kissing Trump's behind. And
we'll get to those things with Zach Abraham. Hey, Zach,
have you seen this? I know you have bone Frog
in the office and the coffee have you seen this
particular bag. This is Extortion seventeen. I don't know if
you can see this. I have to point another different
camera for you.
Speaker 3: Was that the same one that you showed last.
Speaker 1: Week or it's that same one with the black cockhaill
cop Oh?
Speaker 3: Yeah, yeah, yeah, So this has been yeah.
Speaker 1: Oh shoulduck not a black ugy shureduck?
Speaker 6: Thank you.
Speaker 1: So this will be the last week I'm showing this
to you because we're going to bring in a different
bag next week. So Bone Frog honors Navy Seals. It
says in the back of God Country Team bone Frog.
This insignia is not on this bag, there's no room
for it, but the actual insignia of the Bone Frog.
It indicates a fallen Navy Seal. On the side of
this bag, there's the names of the special operators who
were killed in the largest loss of life in the
history of the Special Seal special Forces community, plus the
service dog was killed in that particular event. There is
an expedition on the back of all thirty eight people
on boards twenty five American Special Operations personnel, five US
National Guard, US Army Reserve crewman, seven Afghan commanders in
one Afghan interpreter as well as the US military working dog.
The details for Extortion seventeen are something you're gonna have
to google because most people, like Tim who found the
Bone Frog, he's a retired Navy seal who's a medic
attached to the Seal Teams three three deployments, they can't
talk about Extortion seventeen truthfully because of agreements with the
Department of Defense. Google this and then understand why this
vegas so important. This is a medium roast and he
describes it this way Extortion seventeen. This single origin Samaritan
roast is characterized by its full body now low acidity.
His flavor is wild, rich and earthy, with a slight
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If you've already had a bunch of frog and you
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subscribe as Bonefrog Coffee dot com slash tod promo code
Todd for a fifteen percent off subscription coffee Plus. You
are redeemed no longer a communist. So you like Scott Piscent, right, Yeah,
I think he's pretty shure it Okay, So Scott Piscent
was being looked at to replace Powell as FED share
so that's not gonna happen. But if that had happened,
would you have been happy, Zach?
Speaker 3: Yeah, I think percent would have done a good job.
I think that he Yeah, he fits the criteria of
who I of who I think. I don't think the
FED chair needs to actually be somebody rights that policy
is made up of the FMC and they all get
one vote. But you have to remake the FED. You
need to get more practitioners like Thecent that actually understand
you know, not just economic theory, but you know where
the rubber meets.
Speaker 1: The road, and practitioners versus theorists. And this is a
big theme you have when you talk about the FED,
because they keep doing things that should work and things
that have never worked. Right, So who's what is the
biggest difference you think between practitioners of finance, people like
you Chief Investment Officer Bulwark Cupal management. Incidentally, Zax's podcast
Know Your Risk Podcast dot com. It's also Rea can
hook with them to have him take a look at
your finances Know Your Risk podcast dot Com. What's the
biggest difference between a practitioner like yourself and a pure
theorist like Powell?
Speaker 3: I mean, it was the first simple way to put
it is, I have a running scoreboard. It tells both
me and the entire world exactly how I'm doing at
my job. So in that way, I really really envy
the FED. You know well, because look, you and I
have talked about this a long time, or you and
I have talked about this multiple times. A perfect example
of this is by the year twenty thirteen, I was
forced to re examine every single thing that I held
true or thought that I knew about economics due to
the lack of inflation, the lack of wage growth. And
this was coming out of the eight hundred and eighty
billion TARP that we spent on TARP, coming out of
a weight O nine, the institutional quantitative easing artificially zero
percent interest rates, pumping money like crazy, all this stuff,
and why are we not getting inflation the way that
we thought of it? And so as an asset manager,
you know, at the end of the day, you've got
a report card in its asset prices. Right, well, defed
doesn't have a report card. Everybody's like, yeah they do.
It's the economy. Well yeah, how well have they done
on that? Right? Not very good? Okay? So and then
and then when it happens, what do they say, Well,
we couldn't have foreseen this all. We couldn't have foreseen that,
or we couldn't have foreseen this. And you're like, okay,
you couldn't have foreseen and this this is literally what
they'll tell you. Okay it. Two interesting things happened at
the end of the nineties. Using theaight and O nine
is an analogue, okay nine financial crisis. Two things happen. First,
it was either ninety eight or ninety nine. You extended
or you amended the Community Reinvestment Act, which then obligated
Fanny and Freddie that fifty percent of all issue loans
needed to go to go to subprime lenders.
Speaker 6: Yep.
Speaker 2: Right.
Speaker 3: Within twelve to sixteen months of that, you repealed Glass Siegel,
which mandated that all financial institutions, insurance, commercial investment, and
traditional banking needed to be at separate entities. It was
a It was a law was put in place after
the after the nineteen twenty nine crash, and ever since
that law was put into place in the early thirties,
you never had a series of financial crisis. That law
was repealed, I believe in ninety eight, it might have
been at the beginning of ninety nine. Within nine years
you have the second largest financial crisis in the history
of the country. So that's where you'd sit there and
look at the FED and go, what did you advise
them on those laws? And the FED would be like, well,
you know, we blah blah blah, you know, give you
some nonsense, and you go, So what you what you
were telling me is that you're in charge of the
entire economy. You think it's a good idea to arbitrarily
decide that fifty percent of all mortgages this shoot are
going to go to people that remember when I when.
Speaker 1: I say suprime, no ability to pay it back.
Speaker 3: Right, And that definition has been built and constructed via
actuaries and hard data for like the last one hundred
and twenty years, right, So that would be like going
against actuarial data on that kind of stuff. Would be
like telling people all of a sudden, you know what,
we actually think smoking makes you healthy. We don't care
about that stuff.
Speaker 1: We do the New York Times coming out and saying
junk foods healthy.
Speaker 3: Yeah, yeah, there you go, there you go. So these
are the same people, then that will tell you, Okay,
we are going to sit there and pull away the
traditional metric that determines credit worthiness. Simultaneously, we're going to
allow massive financial institutions to merge. Why is that important?
That's important because when all of these financial institutions are
separated and they try to go sell their toxic garbage
to each other, they really look through it well and
make sure they're not buying somebody's toxic garbage, and that
keeps all. If they can't sell it to every ball
their buddies on Wall Street, they're not gonna make it right. Well,
as soon as you old Glass Seagul in ninety eight
ninety nine, all of a sudden, what did you have
in O eight o nine? You had all of these
toxic concoctions and stuff? Why because it was all of
Wall Street selling it to everybody off of Wall Street
for the most part, So so and and the FED
would like you to believe that there's no way they
could have seen that coming.
Speaker 1: And that's the that's the theorist versus the practitioner, right right.
Speaker 3: Right, yes, because because if we're wrong, right, our business
as well as our clients' lives get smoked. If the
Fed's wrong, they still get to make five million dollars
at speaking on speaking tours when they leave the FED,
and they still get one hundred percent of their ending
salary as a lifetime pension, so they don't have a
report card. They never have to get it right.
Speaker 1: Yeah, and you I think you said five of the
past six years, you guys are ordered and you can
go look at those results.
Speaker 3: Right, yeah, yeah, yeah, yeah, we started, Yeah, we started
having audited performance results in twenty twenty.
Speaker 1: Yeah. And the FED, of course, you know, I've always
admired the fact that they're so transparent about not being audited.
They're the one entity that can't be audited. It's like
the teachers' unions will say, oh, no, you can't have
performance paying teachers. Why well, because you know, they don't
have the same student base. Some students come in and
they can read well, some can't. Oh you mean like
a sales professional. They go into a district, some people
are going to grind you down on price. Others aren't.
Some people that had a bad experience at the company're
not your fault, or like a oh, I don't know.
Let's say a talk show host. Well, there's some people
that can't get up at seven and am to listen
to you. And so it's we're the one thing that
there can't be performance pay, and the FED is the
one entity that can't be audited. I don't even know
if there's a big reason to play this other than
I found that amusing. I want us to watch together
or listen. I guess I don't like the Bank of
America because they, let's see, let's count up the reasons,
low interest rate loans sometimes zero interest rate to illegal immigrants,
align them to ship money overseas, debanking conservatives calling themselves
Bank of America. All this is going on. So I'll
show this to you in just a second.
Speaker 2: Zac.
Speaker 1: Look, it takes money, big money to go do big
money in Hollywood. Angel Studios started small, but they're not
small anymore. And one of the things they're continuing to
do is stay small minded, not in terms of creativity,
but in terms of who actually runs a place. When
you become an Angel Studio Premium Guild member, you vote
on the movies and stories that they tell and they distribute.
And there's a new one that's come up thumbs up
on this. It's called Testament. This thing got voted up.
Now it's out. This takes the Book of Acts from
the time after Jesus extended back to Heaven and it
transplants that story into a timeline like the one in
which we live. Surveillance state, censorship state, a state that
hates the truth. So watch the apostles go and try
to spread the truth of Jesus Christ in that environment.
Now as you're watching this, take your own temperature. Are
you doing it? You live in a censorship state, you
linder surveillance state. Are you actually spreading the word of
Jesus or are you scared and maybe not doing it?
So Testament, go stream this right now. Go to angel
dot com slash Todd become a Premium Angel Studio as
Guild member. You can stream Testament immediately, can stream their
fan creative programs. You get to vote on all the
shows that they promote and distribute and make, and of
course you get two free tickets to all of the
theatrical releases. It's angel dot com slash Todd. So here's
what happened to Brian moynihan. Poor guy sitting around doing nothing,
not harming anybody other than all of America. With the
policies at Bank of America.
Speaker 7: He gets to sit and listen to this because we
talked to President Trump squat box about this executive order
that he's planning around banks who he thinks discriminated against conservatives,
and your name came up, and so I just wanted
to show you what he said and wanted to get
your reaction to that.
Speaker 6: What happens is I call a Bank of America routinely,
because when I was president, this was after I got out.
I call a Bank of America routinely, and I speak
to him, and I speak to a couple of people,
and they have a zero interest.
Speaker 3: Brian was kissing my ass.
Speaker 6: When I was president, and when I called him after
I was president to deposit a billion dollars plus and
a lot of other things, more importantly to open accounts,
and he said, we can't do it, we can't do it.
Speaker 7: Yes, were you watching TV when this was happening.
Speaker 8: So I got up early because we're on East Coast time.
I was working out and I was watching your wonderful
show and he came on, and I'm telling you, I'm
still trying to unsee some of the visuals that he
created with his commentary. But look, the President's after the
right thing, which is the laws, rules and regulations around
our industry became used to cause things to happen. This
was bsaml was kyc whether it's reputational risk, and you
hear Tim Scott quote about it. It is right to
go look at these rules because the end of the day,
they are causing decisions to be made that can be
looked at in retrospect differently.
Speaker 1: We should get these rules, right, Zach. When he's talking
about reputational risk, was there ever a law that said
you can't loan or have bank accounts opened by conservatives?
Or was he talking about the good old fashion change
they made to try to pressure Americans to do the
right thing. There was never a law that way.
Speaker 3: No. So this when I talk about the regulatory environment
becoming really unhinged and becoming is something that's actually working
against its original look. And when I say the vast
majority of people at the regulatory bodies, and by vast
majority I mean well over fifty percent at the SEC,
at the EPA, the vast majority of those people work
there and took a job there from the beginning because
they believe in the mission to some degree and they
want to do the right thing right. The issue comes
at the top, the structure and the leadership. Most importantly,
the incentives. The incentives of regulatory bodies are not at
all what people think they are. And the problem with
these regulations is they've gotten so global and so ubiquitous,
meaning the regulators got smart and quit writing regulations too specifically.
Speaker 2: Right.
Speaker 3: So, for instance, I hadn't even thought of that, and
sort of I heard one a hand talk about KYC,
which means know your client. Okay, the way that's written again,
when you look at the regulation, it makes sense. You
want to make sure that your client is not some
foreign entity, some isis person right, some Irish Republic army
right IRA back in the day, kind of for an
eighties nineties reference. But you want to make sure that
you're not laundering money for the cartel, right, know your client, but.
Speaker 1: They were wandering money for the cartels well.
Speaker 3: Yeah, I mean I didn't the CIA and the FBI
get a pass, so yeah, yeah, they gonna do that apologize. Yeah,
so so, but the way they're written, it's it's not
okay if the person did this, they're definitely this. It's
way more ambiguous than that. So the minute he said
to know your client stuff, I started laughing and went,
when you look at the regulation, it's totally it's totally subjective, right,
So you could sit there and go, well, we weren't
comfortable with his answer on section three, Part D and
we just didn't feel and you look at that, and
then that's business entities in more than three different legal jurisdictions,
blah blah, and then the bank legally can go now,
we just don't feel comfortable via KYC or know your
Client regulations. And you think about that and go, you
want to know how a regulatory body uses non right,
non congress nationally legislated rules to box people American citizens
out of the US system. No legal regulation should be
able to box a legal US citizen outside of the
US system, because anything that can do that is by
definition a law. It must be passed via legislation via Congress.
So it's just to me, that's a perfect example. I'm
not surprised by Moynihan's reaction. He's not the CEO of
Bank of America. He's a He's a regional vice president
for the Treasury, right, meaning the head of these Wall
Street banks. They're no longer the head of Wall Street
banks who runs the Wall Street banks, the FED, who
effectively runs the Fed. I mean, the Fed's got some autonomy,
but you know, the Treasury's got a big say in
that as well. But these Wall Street bosses, they're just
products of the system. They're gonna talk nice about Trump
when he's not in there, and when the Biden administration
wants to come in and box Trump out, they're gonna
say yes. And if they don't, they lose their job.
Those guys, they are no different than senators at this point.
Speaker 1: Yeah, well said, well said. Always good to have you
on Know Your riskpodcast dot com. Thank you for the
wise counsel. My brother, I'm geared up for another trip
to Mexico. Would love it if we could get our
families down there together, man, I'd love to do that.
I'm looking October this time. Just go golf, man, I mean,
I don't I think the stem cells are doing. We'll
just go golf.
Speaker 3: Well, no, I do that. My wife's not gonna want
to just golf. She's gonna want to hit up that clinic. Man.
Speaker 1: Okay, we're cooking that up and so we'll make something
like that happen. Great to see. If my brothers say
hi to the family, and God bless you. This is
the Todd hermersheaw please go be well, be strong, be kind.
Remember it's not money, but the love of money that's
the roots of all evil. And go make a decision
to follow Lord Jesus. Remember I get to celebrate, to
go home and see my beloved wife.