Speaker 1: So when I read things like this it says here
the Fed just purchased twenty billion dollars in three year bonds.
I think, you know what, I could call that dude
who knows a guy from the store where he used
to work and get an opinion, or maybe just a
dude at the bank, or maybe someone who's a fund
advisor but not a fiduciary. But no, I decided and
said to call my friend and brother, zach Abraham into
the studio. He is a fiduciary. He is the chief
from decoxser of Browart Capital Management. He's ripped, he's ten,
He's ready, he joins this courtesy of God Almighty, thank
you link.
Speaker 2: But Todd Herman show is one hundred percent disapproved by
big pharma technocrats and tyrant's everywhere from the high mountains
of Free America. Here's the Emerald City exile Todd Herman.
Speaker 1: Today is the day to me in decent the times
s which God has decided wished to live in. Zach Abraham,
aforementioned afour pitched, joins us, so good to see you,
my brother, welcome.
Speaker 3: Back, good to be back, good to be back.
Speaker 1: Let us start with a minor little story something here
about the Federal Reserve purchasing twenty billion dollars in three
year bonds. I can't imagine that has any significance. It's
not like they're injecting liquidity to cut interest rates. It's
not like it's q E ten billion, is it? All
those things?
Speaker 4: Yeah, you know, I'll be honest with you. When I
saw that headline is a little bit of a head
scratcher to me, okay, And the reason why is because
I don't so the FED meeting is happening right now
as we speak, so Powell's i'm sure, explaining that, and
our lead analyst is in there watching it, so as
soon as I get off done with you, i'll know
exactly what Powell said about it. The reason that was
strange to me was because nobody's really worried about the
front end of the curve. And what I mean by
that is one one year bonds, two year, three year,
five year.
Speaker 3: That's not the issue.
Speaker 4: The thing that everybody's been concerned about is the back end,
so tens, twenties, and thirties.
Speaker 3: So if you would have told me that.
Speaker 4: The Fed bot twenty billion dollars worth of bonds, my
guess is I would have guessed that it had been
ten or thirty year treasuries.
Speaker 3: Why they're buying three I don't know. I don't know.
I don't know.
Speaker 4: If that's them easing back into quantitative easing mode, because
I do not think that we are going to get
through the next year year and a half without serious
interest rate cuts and probably running simultaneously quantitative easing.
Speaker 1: So maybe that's let's make sure quantitative easing is conjuring money.
Speaker 4: Yeah, so, so and and and it really is that simple,
Todd Like, I'm glad you put it that way. It's
this money isn't coming from somewhere, Matt, Like, it's not
coming from anywhere real, right, They print the money.
Speaker 3: They they well, they don't print it.
Speaker 4: They push a button on their computer and put dollars
in an account. They then take those dollars that they
just created or conjured, as you said, and they buy
treasuries from the banks.
Speaker 3: That's that's what they do. So I don't know.
Speaker 4: And the amount is kind of odd too, Like I
said to me, there's it feels symbolic. I'm just not
understanding exactly what kind of symbolism they're trying to get
across here, other than the fact that they're to me maybe,
And again that's why I'm interested to hear what Pal
has to say.
Speaker 3: And now he explains it.
Speaker 4: But to me, it's probably most likely move to just
reassure the markets and say the fat as you're back a.
Speaker 1: Can that's that's that's that's certainly from a financial explanation.
I will always always uh seed you the expertise financially.
Let me offer just a tiny little thought. So we
had President Trump criticizing Powell, criticizing the FED, saying he's
constantly late. He's pathetically late late to the party. Should
be cutting interest rates now, should have done it ten
weeks ago. He's late, Larry Powell. So I could see
this is Pal going. You know what, I can do
whatever I want to do. I can buy the front
under the curve. I'm completely independent. When I conjure money.
It's debt to the American people, but it's money to us.
So you know, hey, don I don't work for you.
Speaker 3: Yeah.
Speaker 4: Yeah, he can the other thing too, though it could
just as easily be the flip side of it.
Speaker 3: Okay.
Speaker 4: Yeah, And here's why I say that, because when you
look at where the FED is and what they've communicated
thus far, they have not met their own criteria that
they have stated themselves for additional rate cuts. And when
you consider where you're at right now in terms of
where inflation is, where we're at in that battle, there is.
Speaker 3: A fear, and I think it should and I think.
Speaker 4: It's an appropriate fear by the FED to adjust rates
too early and reignite inflation. So you, I think it
probably is either your version or mine. I think that's
probably what he occurred here. It's either him trying to
show Trump I'll do whatever I want and asserting his independence,
or it's him saying, look, we can't justify a rate
cut right now, but we're very concerned by what's going on.
Speaker 3: So we're going to give kind of a rate.
Speaker 4: Cut light, if you will, a kind of a gentle
caressing of the market, telling them what here.
Speaker 1: If people don't have the video version of the show,
they just meant you, they just missed you, gently caressing
Larry Powell is so, Larry, I love your curves and
this smell of you.
Speaker 3: Yeah so, And that's that's that's what I think. It's
either one of those two.
Speaker 4: My suspicion is it's the second meaning, this is an
effort for them to say, look, we know that what
is currently happening is probably restricting liquidity to some degree.
It's it's certainly increasing friction and financial markets. We again,
we haven't met our own stated criteria to start cutting yet.
But what we'll do is we'll just do a little
bond purchase, try to squeeze a little more liquidity into
the system. But again, the fact he bought twenty billion
and the fact that it were three years makes me
believe it's more of a symbolic move, just reminding the
markets that the Fed's there.
Speaker 1: Okay, fair enough, there is a there's an ad that's
come out for and that. Man, this is smart. This
is how you use a celebrity endorsement. Without using this celebrity,
you only hint at the celebrity. And this happens to
be a political celebrity, a celebrity, and someone who is
antagonistic to everything that is right, proper, good and godly
in America, and happens to be one of the most
obviously corrupt public so called public officials ever. So I
want to show this to Zach and run us through
some of the inside lingo here and let's pieces s
part together. But let me say something here. She represents
a truly perverse and corrupt portion of a world where
there are good people in There's some good people in politics.
I was just down in a Benawah County, a Saint Mary's, Idaho.
Those are good people. You know, former loggers. What's you know?
How cool it is to meet a guy who's been
a state rep for twelve years and prior to that
he drove a logging truck and like on the weekends,
he still drives them. You know what I'm saying. So
love it. There is an industry, the supplement industry, and look,
there are some snakes in that industry and they're in
and out and they can hurt people. They sell junk products.
Then there's bio Optimizers that has been in this for decades.
Why do they last because they do the right thing.
They just improved mass times. Literally, this is one of
their benchmark products. This is a product I use to
rely to digest proteins. And when I do that, that
helps me not just not just be not bloated and
not just sleep better, It helps maintain lean muscle because
you are stewarding the lean muscle in your body. And
it can even help you put on muscle because it
breaks the proteins down better into amino acids, which is
the building block of muscle. It's not protein. Amino acids
are so it's Biptimises dot com slash tod promo code tod.
You get tempercent off all their products and skip the
thinking about it. If you care about muscle composition and
stewarding the body, God gave you your lean muscle that
you have now, just subscribe to mass Sims Bibtemises dot
com slash tod promo code TOD. Mass sims is now
thirty percent more potent Bibtemisers dot com slash todd promo
code tod. And there's some of the good actors in this. Okay,
so Zach. This is a company that see autopilots and
I'm saying it join autopilots. I'm saying it because they
did a smart thing. This is a great ad. And
here it is. This is someone who looks a lot
like well, I'll let you decide who she looks like.
Speaker 5: What is my perfect trade? I get the tip at
three fifty eight. Market closes in two Do I buy Apple, Nope,
I buy a defense contractor more subtle. Next day, war
breaks out, stock triples. The Ethics Committee calls, how did
you know? I say, gut feeling. They respect that. As
I'm selling. A lobbyist walks in. He says, that was
my intel.
Speaker 3: I say, was it.
Speaker 5: We spend the weekend at Camp David. No one's there.
It's romantic. Monday market's back in session. I tell him
to meet me in the Caymans, but I go to Switzerland.
I don't trust him. Besides, tax laws are better. Thirty
years later, I get a letter. I have a son.
He runs the SEC. This is where the story gets interesting.
I tell the lobbyist to meet me at the Lincoln
Memorial midnight. Turns out he's been following my trades for years.
Through Autopilot. It lets you invest like a politician without
marrying one. He says he needs one more tip. I
don't care. I don't show up. Flew to Singapore. That's
where I set up. The shell company shoots.
Speaker 1: That the most gorgeous ads for a financial that you've
ever seen.
Speaker 3: I said, yeah, that's brilliant. It's brilliant. I love it.
Speaker 4: It's absolutely brilliant and yeah, I just like and the
fun Yeah, the funny thing about it is, I don't
think it's I mean, you know, I'm sure there's some embellishments,
but I don't think it's that far off.
Speaker 3: It's not that far off.
Speaker 1: I don't either. And even the part about the kid,
and there's no there's no proof that this person who
looks a lot like what's your name? Uh from San
Francisco and she's got like a two hundred and fifty
million networth and.
Speaker 3: Dance stan see yeah, dance something like that.
Speaker 1: Yeah, oh yeah, right the queen of the blow out
where yeah, yeah, right during the COVID wherever you had
to wear the mask shot?
Speaker 4: Oh Pelosi, yeah Pelosi, Yes, Nancy, I knew it was
something like that.
Speaker 1: There's no proof that she has an illegitimate kid from
a defense industry of lobby. It's but there's no proof
that she doesn't. And that's a negative you should have
to prove. Is it that murky? Is it that filthy?
Because if I'm looking at the networks of these guys,
I'm falling their trades. I'm just in the Nancy Polosi stock picker.
Would they really do it that obvious? That every single
human being can see it.
Speaker 4: What I can tell you is that if we put
up similar returns, we'd have the sec all over us.
And seriously, yeah, and and and it's it's it literally
is here's and here's the thing people need to understand
about investing.
Speaker 3: And when you say stuff like this, people.
Speaker 4: Are kind of like, well, you don't know that when
you look at somebody that generates the kind of returns
that these people do year in and year out in
excess of market returns, one of two things has to
be true.
Speaker 3: These people are either on.
Speaker 4: The level of a stand Ruck and Miller a buffet
or like Jim Simon's at Renaissance Technology, which you know,
I just described three of the best people to ever
manage money in history.
Speaker 3: Or it's fraud.
Speaker 4: That's pretty simple, just yeah, just plain and simple and
and a good analogy of this, a good way to understand.
This is one of the hallmarks of Bernie. Uh why
am I Bernie made off? Bernie made of one of
the hallmarks of that whole deal. It wasn't the amounts
that he was making. It was the lack of volatility,
the smooth returns. Now, now their returns aren't the same.
But I'm using this as an analogy, and guy like,
yeah pyramid, yeah yeah, his was just straight fraud, I
mean straight Ponzi's scheme, like it wasn't even investing the
money and the things he said he was investing it in.
Speaker 3: But the way you could tell is when I look
at returns.
Speaker 4: I can't just look at somebody's returns automatically and go, okay,
that's fraudulent. But but when I look at the returns
and I don't don't see any volatility, that is a tell.
Speaker 2: Okay.
Speaker 4: And meanwhile, and why because you know, look at a
look go look at a company like Nvidia when it
went on its great run. Yeah, okay, it had days
where it got smacked. It had weeks where it was
down ten to fifteen percent, right, and yet you go
to the end of it, and if you held on
that whole time, you.
Speaker 3: Made a pile.
Speaker 2: Right.
Speaker 4: Those types of there's no trader in the world that
can that can anticipate that type of volatility on a
daily day, on a daily basis.
Speaker 2: Right.
Speaker 3: So when you see smooth returns, the same is true
when you see somebody that doesn't have.
Speaker 4: Like for instance, they're not somebody like stand Ruck and
Miller that has a history of making these.
Speaker 3: Trades and doing these things.
Speaker 4: They don't have a software setup or a computer setup
like Jim Simon's does at Renaissance Technology that helps explain that.
Speaker 3: And yet you've got market.
Speaker 4: Beating returns with fantastically timed trades all over the place.
It just I like, if you just looked at that
on the surface of it, somebody that knew what they
were doing, anybody would they would just go something's off here.
Speaker 1: Okay, now let me get to a specific here, because
I want to make sure people understand this. I know
what you're saying is true obviously, and I know it
makes sense, but let me I want people to understand this.
If you and I let's say that we're down in
Mexico together, Okay, we're hanging out. Let's say we're having
dinner and gentlemen sits down and says, say, mind if
I join you? Right, And so it's a public place. Hey, yes,
you have a seat reving tacos. We start to visit,
and turns out let's say that he is a let's
say he's a pharma exec, you know, so he looks
at me. I'm suddenly suicided. Sorry, I mean not really,
because you know, Farmer loves me. But let's say we
sit and listen, and he says, yeah, you know what,
I work for a pharmaceutic pharmaceutsic company, a you know
a funny thing. On Monday, we are releasing a drug
that has been proven secure lung cancer. And here's the
you know, the profile, the safety profile. And he says
that to us. Now, I could walk out of there, Zach,
and I could, I guess, go purchase stock in that
company if I believe that what this guy's saying. And
I'm okay. But if you went back and, as a
fiduciary and a fund manager at Bulwark, if you started
to use that inside information, are you at that point
in trouble or is that casual enough that you're okay?
Speaker 4: What did he so remind me? Did he give me
any material information?
Speaker 1: Yes? So he said, we're releasing this on Monday. Here's
the safety profile, some of the testing. Let me show
you on my phone and say, I'll text you some
things and you can look at it yourself.
Speaker 3: You you both you and I can't do that?
Speaker 1: Wait I can't in No, nope, nope, just a dude
from Idaho with a podcast and a couple of national
radio shows.
Speaker 4: I can't yep the second the second that news release
is out, you can act, but not one second prior
to that.
Speaker 1: Wait wait wait, wait wait, I thought that applied to you,
but not just ordinary shoe that I happened to come
across something.
Speaker 3: Okay.
Speaker 1: If I'm on an airplane and I'm sitting next to
that guy and he's not good at OPSEC and he's
working on stuff, and I happen to look over an
eagle eye and I'm spying, and I realized, oh wow,
that drug's coming out Monday. They have a press release.
That safety profile looks solid. If I took that and
bought it, then I'm just a spy and I'm okay
because he didn't give it to me. Wait wait, wait, no,
it's not yep.
Speaker 3: That's because it's no public information.
Speaker 1: That's illegal. Yeah, well they do this, they're told these things.
Speaker 4: Yeah yeah, no, no, Look, and we've got all the
transcripts in the proof. Remember it's the people coming out
of the Banking Committee meetings in O eight, O nine,
And within five minutes leaving the Banking Subcommittee meeting, they're
all selling their financial stocks.
Speaker 2: Right.
Speaker 1: I've told the story very often, so I'll give the
short version. I was in DC and Barney Frank, Congressman Frank,
was giving a speech before me. Congressman Frank was asked
a question. It was to DC powerbrokers, colms guys, VP, comms,
spin doctors, PR firm heads, journalists, and someone raised their
hand and Frank called on them and he said, yeah, Congressman,
you know there was a discussion this morning about Greek
bonds and committee. Can you tell us where that went?
Barney Frank, Well, you know, I can't really disclose that information.
It's part Fauci, part Barney Frank. I can't really, you know,
disclose that, but I would say this, if I were
a rich man, I would be buying Greek bonds because
as of about a half hour ago, Greece is a
visually too big to fail. So he says this. I
get up and I'm my friend Trevor had me there,
and I get to the microphone. I've got my BlackBerry out.
I go, I'm so sorry. I know this is very
very rude. I'm so sorry. I apologize typing away. I'm sorry.
Just one more minute, okay, all right, I just bought
Greek bonds. Let's hear it for insider Trading and Congressman
Barney Frank. Here everybody insider trading and Congressman Frank. And
the room starts to plot and Barney Frank is in
the back of the room and he gives me the
and he gives me the he hated my guts. I
confronted him another time because he was triple park because
he's going into a liquor store and he told me
f off because they said, hey, Congressman, you're blocking the
little people's getting the work. You're triple parked. So he's
in the back of the room and the room is
legitimately applauding, let's hear it for insider trading and Congressman Frank.
And then they're plotting and somebody goes, idiots, he's making
fun of us.
Speaker 4: Yeah, well, I was gonna say, if I would have
got flipped off by Barney Frank, I would have hoped
somebody would have caught it on film because I'd have
taken that image and put it on a T shirt
and warn it with pride. I got flipped off by
Barney Frank, I would have been I would even proud.
Speaker 3: That's a bad. That's a bad to honor my friend.
Speaker 1: Well, I thank you for that. And my friend Trevor
wasn't a fan of what I did, but they were
plotting it.
Speaker 4: So okay, Zach, so let me let me let me
throw something, all even all throw something. I'll give you
a real life scenario exactly what I'm talking about.
Speaker 1: Okay, dude, that okay, yet, watch this. I have some
inside information on bone Frog Coffee. Okay, listen now, listen up.
So Tim created the Golden Edge bag to you know,
care for the Trump economy. It's going away. So here's
the deal. Yeah, I know, it's a limited time. It's
a beautiful bag. It recognizes the Trump economy is called
Golden Age, and it's limited time, and the time is
coming to a close. So you and I we could
corner the market. We could buy a bunch of this
and resell it at a markup and a profit. We
could probably sell something back to Tim. So it's Bonefrog
Coffee dot com slash Todd promo code Todd use Homo
coode Todd to get teen percent a first purchase fifteen
percent off subscription coffee. It's Golden Age all right, make sure.
In fact, Alex removed that later from the show because
I wanted Zach and I to have just the inside.
Speaker 3: I'm calling my trader.
Speaker 1: All right, you're on the phone.
Speaker 3: Yeah, Blue Horseshoe loves bone Frog cotton.
Speaker 1: Yeah, is it?
Speaker 4: Blue Horseshoe loves Andy cutt of steel, all right, Endicott
steel and Cite steel.
Speaker 1: So so take me through what you were gonna say.
Speaker 4: So just to give you an idea of how this
has looked at. Okay, So one of our traders during
I think it was, was it twenty I think it
was during twenty twenty two, when when rates were going
up and the market was getting cracked, and one of
our traders came to me and said, hey, my dad's
account is with us. We want to make some very
aggressive short vets against this market. And I said, okay,
we'll put them on the phone. So I talked to
the dad and I said, look, you you understand what
the trades you're making. You could lose everything. He goes, Yep, yep,
we know. And to be fair, my traders very experienced,
very good trader, you know. So, but they were doing
some risky stuff.
Speaker 3: Yeah, he had. He's a very good trader, and in
the space of eight months ran.
Speaker 4: His dad's account from about two hundred and fifty grand
up to like one point three million. Okay, wow, we
got investigated for over a year for that, for that
over and it got flagged because of the gains, right,
the outsize gains in one account, not in my personal account,
not in my family's accounts, And it literally was stuff
that when you looked at the trades themselves, it was
impossible for us to do anything untoward, Like it was impossible.
Speaker 3: We were trading.
Speaker 4: Volatility on the exchange, so no inside information could be had.
They I got a year's worth of an investigation just
on the amount of profit we made in a small account.
And that's a one point three million dollars account we
managed between eight nine hundred million. So now am I
saying they shouldn't have looked at that? Now? I mean,
when you see a return like that, I mean, but
what I'm saying is their look looking at that in
shops that are as relatively as small as ours, And
we're not small, but you know, we're right around a
billion in assets, so we're not We're not a big deal.
Speaker 3: By any stretch of the imagination.
Speaker 4: But if that gets that kind of consternation, it kind
of gives you an idea of how egregious what's happening
at DC is.
Speaker 1: Oh. I mean, they sit in conferences looking at the
minute level of detail of these products and these deals
and how many units are going to ship. They're looking
at length of contract because if they're approving these things,
these big international deals, Defense department deals, pharma deals, anything
that's international trade, they're looking down to unicosts. And I
got to imagine there's no way Pelosi's looking at that stuff.
She's getting that information. This looks big. You know, She's
bringing in people to look at this. She's got her chads,
she's got her analysts that are looking at this. Oh
my gosh. Okay. I knew this was outside because I
remember when I was at Microsoft, I had done some
consulting for a company and I won't I won't mention them,
but they had software for making videos easier to see online.
So it might be something that you can install on
a website, you know, to make it super easy for
video to load. And people who know no Microsoft was
they bought them, and they screwed the company up, but
they bought them. And I had consulted that company, and
I got a waiver from Microsoft that I could still
be on their advisory board. The second it came out
that they were going to they were going to purchase
that firm, I got a note from legal. You need
to sell your shares. Yep, yep. Wait a minute, Wait
a minute. I don't get to take a ride on. No, No,
you need to sell now. So I'm not even I'm
not even all I am is advisory board, which is nothing.
Speaker 3: Yep.
Speaker 1: They have a specific Nope, you have to sell. And
I lost out on a four or five time value
lift on the right, and Nancy Pelosi and these and these,
these these Republicans who do this, they can have that
minute of detail trade on time magically, and this is
why they gave themselves a waiver of to insider trading.
Speaker 3: Yep, yep.
Speaker 4: And that's and and you really it's really not the
other thing is it's really not more complex than that either.
The bottom line is they play by completely different rules.
Speaker 3: And if you and I did what they did, we'd
go to jail.
Speaker 4: We we wouldn't just we we wouldn't just we wouldn't
just get our money taken. We'd forego any profits that
we made, right, and we go to jail.
Speaker 3: I go to jail. You might get off me because
you're not a professional.
Speaker 4: But that didn't that didn't save uh you met me,
save Martha Stewart. Yeah, well no, no, yeah, screw yeah,
never mind.
Speaker 3: Yeah, you'd be done. Yeah, you'd yeah, you'd be done.
Speaker 1: I'd be Frog march Man. They roll heavy in my house.
Speaker 4: Yes, So it's yeah, it's just it's just corruption, plain
and simple and there.
Speaker 3: Yeah, it's it's disgusting, all right.
Speaker 1: So we're gonna get into something here in a bit
about a coin, a meme coin, so it's crypto. And
this person introduced this mean coin, even told people to
not buy it, and people bought it, and we need
to talk about this. But before we get to this
is complex and it has to do with the Democrats
want the FED to be absorbed by the Treasury, and
I want you to weigh in on this in just
a second here, Zach and Zach and I are going
to be down in Portavarto, Mexico in early June, and
I'm going to be coming back from a trip to
Mississippi by the way, because I'm gonna be out there
and I'm gonna come down and we're gonna hang out
down there. Zach and his wife are getting treatment at
Renew Renew Dot Healthcare. I am this time. I'm gonna
hang out in the hyperback therapy room. I'm gonna take
some of the shipments. I'm not gonna get semsols. I
don't have any need for them right now. But you
and are going to be hanging out down there. If
you happen to be going down to Renew, go down now,
you know, but that means get your m right to
those guys getting reviewed and Zach and I would love
it if when we got down there, there were a
bunch of people who are in the pipeline now and
we can go out and have dinner and I'll buy
the first dinner, and then when the four hundred people
show up, Zach will buy the second time. So I'll
take care of the first one. With a couple of folks.
Speaker 3: There you go.
Speaker 1: We're gonna be down there together Renew and I've been
taking inventory. We're putting together a list of conditions we've helped. Okay,
so hemispherical paralyzation person was told you're going to spend
your life in a wheelchair. That turned out not to
be true. The arthritis you have in your hands is
an incurable type. It's just going to get worse, so
we can mitigate the pain, but not the function. Not true.
That shoulder is going to have to have surgery. You'll
never get mobility back without surgery. Not true. We had
the you cannot slow down this muscle wasting disease. Not true.
So why isn't this allowed up here?
Speaker 3: Well?
Speaker 1: Corruption, there's a medical system that doesn't want this. There's
really legitimately good doctors who do not understand when they
give you your own stem cells that that doesn't really
do much for you. They'd't understand that the process of
rejecting eighty percent of the umbilical cords, they get eighty
percent of them means they ogly work with the most quality.
Then they multiply them, they culture them so they get
more quality cells in your body immediately. The combination of
that and the h BOT therapies, the NAD therapies, the
Meyers drip that their next door to or world class hospital.
Oh and not to mention, they've saved three people's lives
who went there for stem cells and ended up getting
heart surgery that next day because they were going to die.
So it's renewed dot healthcare. E you e dot healthcare
if you can get down there in early June again,
and I mean it, I'll buy the first dinner. And
I'm sure you know. I don't mean to speak for you,
but I know you to be a good and generous man.
I'm sure you would buy the second dinner, and I
would love to. I'm sure that you would thank you
for that. It's renewed or and you e dot Healthcare.
Here's something that apparently the FED wants to do. They
the Democrats actually want the Fed to be absorbed by
the treasury.
Speaker 6: The progressive you know, want to absorb the fat into
the treasury.
Speaker 1: Right it again? You think the truth? Yeah, because they
want to they.
Speaker 6: Want a central bank digital currency soak everything up from
the banks, which they don't like. Then the central bank
will have all the money and they'll, you know.
Speaker 3: Find who to lend it to.
Speaker 6: And there there are various levels of these plans, but
that's an idea of been floating out there for a
long time, and central bank digital currencies in some form
maybe stable coins, are coming. If we had stable coins
that are treasury back, it does the same things.
Speaker 1: Ken Rogoff, who is an economist, he was on CNBC.
So the FED, which is not a government agency, it's
an independent agency. It's a country unto itself that conjures
debt and then calls it money and then gives it
to the Treasury, would be absorbed by an actual government body,
which is the Treasury, and we would then have a
central bank digital currency, which we already do. You wire
money that's digital currency, is not a central bank digital currency.
You wire money, ach transfer that's digital, venmo that's digital.
So how on earth can a government agency absorb a
non government agency and then still pretend the FED is independent?
Speaker 3: Oh they can't.
Speaker 4: I mean, in the minute that happens, any illusion of
or I shouldn't say illusion, but any thoughts surrounding FED
independence are immediately vaporized.
Speaker 3: I mean, that's yeah.
Speaker 4: And the other thing too, is that there's really no
need to do that. I think it is a horrific
idea on so many different levels.
Speaker 3: But the only.
Speaker 4: Reason and I haven't looked into that. That's the first
time I've heard that quote.
Speaker 3: I haven't.
Speaker 4: I haven't looked into this, but the only reason I
can come up with why progressives would support that is
purely for the ability to have more control.
Speaker 3: There's no other reason.
Speaker 4: And the just like I said with Trump, where I
was like, look, Powell may may or may not be
a good actor, whatever the case may be. But having
the president, having the president having the ability to conduct
monetary policy is a horrible idea, regardless of what president is.
For instance, when when a president is up for reelection,
what do you think the likelihood that he'd cut interest rates.
Speaker 3: Six months before.
Speaker 1: It approaches.
Speaker 4: Yeah, yeah, so uh, you would just completely politicize it.
And more importantly, I think it's just a it's just
another step to, you know, just building up this Potempkin
village even larger.
Speaker 3: And it's a horrible idea. It shocked.
Speaker 4: It doesn't shock me to hear a guy like rogue
Off pitching that. But no, I think it's a horrific idea.
I think that if you did that, the dollar probably
get instantly hit for I would think ten to fifteen percent.
I think our treasuries would sell off. I don't think
it'd be a good thing at all. I think it's
a horrible idea.
Speaker 1: Yeah, and anytime you're further centralizing government and taking a
scam institution, sorry, the FED, I just it drives me crazy,
and then rolling it into another scam institution that has
never answered for illegally buying corporate bonds at seventy seven
point two billion dollars seven and twenty billion dollars like that.
Speaker 3: Yeah, you know me, I am no fan of the FED.
Speaker 1: Yeh.
Speaker 4: At the same time, you do need a central bank.
You need a central bank, you need a lender of
last resort, and you need that. You need that lender
of last resort to be politically insulated.
Speaker 3: They need to be outside the political system. And I
am not I'm not saying there.
Speaker 4: Aren't serious changes that I would want to make it
the FED right like that, I think there's but anybody
arguing whether they want to give the president the right
to conduct monetary policy, whether they want the Treasury to
soak up the FED, all of it is effectively the
same thing. It doesn't really matter, right if the Treasury
soaks up the FED, the president now has monetary policy power, period,
And all.
Speaker 1: About the FED is it would be really nice if
the lender of last resort was the lender of last
resorts because not right first and pretty first, right, well,
we know what the Fed's going to do something, all right,
This is a bizarre story, and it is about a
well known Twitter accounts. I remember when this account started.
They're so good at this. They've grown so well. They
understand the algo and they do the things to grow
on social media. And maybe I'm not shadow and maybe
I just suck at social media, although I know I'm
shadow of and I just I know that because I
watched them do it and decrease my likes and retweets
and all that. So I'll tell you about this in
a second, just after I remind you that tonight, when
you shower, you're probably a life hating communist. Sorry, I mean,
if you're using non Allen soap. I mean, I still
love you, but you are a life hating communist because
when you're washing your body with that soap, you're not
washing it with Alan's. And look, I tell Alan, I mean,
he's nonverbal, he's fourteen, he's been through these eighteen operations,
so he can't say what he feels about you. But
he's super sick. Because I got your names. It's in
the database. So like I told him tonight, Hey, you
know what, Betty Thomas from Idaho Falls, Idaho. She's been
big fan of the show for a long time, but
she's never purchased your soap. And Alan put his head
down and cried a little bit. So I mean, make
your choice. It's made with all natural materials, absolutely no
chemicals made by I have three generations to soapbaging expertise
and truly without without joking. Alan is nonverbal through autism.
He has been three eighteen operations. No, he is not
going to be anger if you don't buy a soap.
But our mission is to employ Allan and we do.
And Ian also affected by autism, and we do, and
Amy and we do. And that's the mission. It's Alan
Soaps dot Com slash Todd. He's probably tid to get
tempera sent off all their products. It's not just soap,
by the way, there are some of the most soft
the softest wash costs I've ever had there, and soap
racks as well. It's Alan Soaps dot Com slash Todd
and get Temper sent off everything there. This is a
bizarre story and it's good that we have Zach Abraham,
Chief and vestment officer Bulwart Capital Management with us to
help us figure this out. I'll read through this real quick, Zach,
and then I want to get your input on this.
This comes from a Muse. It's a great account on Twitter,
and amuse rites this and I'm saying amuse because they
don't know if it's a man or woman. On May three,
at approximate eight thirty am, I launched a coin, not
a metaphorical coin, not a metaphor about value or tru
uster social capital, a literal mean coin called a muse
on x based on my ex formerly Twitter handle. I
did not encourage anyone to buy it. In fact, I
told them explicitly not to. Less than two hours later,
it was worth three point five million dollars. This was
not the result of cunning design or market manipulation. I
never bought or sold a mean coin before. I was
not trying to ride a wave, launch a brand, or
seated cult. I was researching for a book about the
people behind the mean coin phenomena, a book that began
appropriately enough in another strange room on February fourteenth, twenty
twenty five. That day was invited to deserve the launch
of a coin tied to Argentine President Javier Malay, a
monetary radical term mean coin messiah, whose likeness has become
shorthand for rebellion and decentralization and digital markets. Pump fund
the platform I use as a disciptively simple name. It
sounds like a toy, a game, a dare. In reality,
it's become a favorite launch pad for mean coins, especially
those tethered to personalities, pop culture and political figures. What
distinguishes pump fun is its structure. Every token has a
fixed apply to one billion, immutable and automatic. When a
creditor launches a token, eight hundred million coins are allocated
to a bonding curve. Mathematical pricing FORMUA then increases the
cost of each coin is more purchased. As a coin
hits sixty nine thousand dollars market cap, pump fund mints
the remaining two hundred million impairs them with roughly twelve
thousand of sol Solona's native token to establish a liquidity
pool on the decentralized exchange Radium. Since February, I've interviewed
dozens of people behind the biggest coin launches, from entertainers
to synonymous whales to marketing teams running Meme labs twenty
four to seven. The money is staggering. Mean coins generated
over one hundred billion in volume last year. A loan
on solon or trading fees from mean coins exceed three billion,
with one single trader spending one hundred and thirty million
on fees. That's just one chain. The market is dominated
by whales and bots. Roughly ten percent of participants extract
ninety percent of the profits. The remaining ninety percent chase
ephemeral highs, often exiting with losses. Many use complex tools
to identify trending launches, enter early and exit minutes later.
My telegram inbox was filled with offers from services promising
to amplify my coins visibility using these mechanisms. I decline
them all. As you're listening to that and aware of this,
I hear to me our fiat currency, which no one
in crypto likes, amplified by ten billion to the ten
billionth power, and somehow they like this, this is value,
But our fiat currency is not. Am I under or
overstating that at all?
Speaker 3: No, you're not overstating it at all.
Speaker 4: And it really is a fascinating time in human history
and financial history, because we've had bubbles before. We've had
plenty of them, right, And you can go back as
far as what is it was it the was it
the south Sea Cut Corporation or whatever that Newton famously
lost a bunch of money on. Yeah, Sir Isaac Newton, Yeah,
you've had pump and dumb scheme, You've had all this.
Never before in humanity history, though, have you seen as
much engagement and an involvement and excited excitement regarding something
that the vast majority of those players know are complete
is complete nonsense, right, Like, so most of the people operating,
like they said the whales, the whales know that these
are completely useless, that they're completely nonsensical. This is a
pump and dump massive value any of these coins.
Speaker 1: Yeah, so let me ask you. I saw groc learning
ads on Twitter about the grock coin. So this is
the first time I've ever felt tempted to buy coin
because you know, it reminded me of when I saw bitcoin.
And I've told this story. When I learned about bitcoin,
I went to my wife and said, I want to
put thirty forty thousand dollars into this bitcoin. She's like,
you're insane and I should have pushed back and said probably,
but I'm still doing it and thirty forty, you know,
fifty maybe At that point, I was printing money out
of my buzzpo website before Amazon destroyed it with their
their ads that attack on our ads, et cetera. So
I could have afforded, frankly, to put twenty five thirty
forty fifty thousand dollars a month into that for a
little while, and I'd be a billionaire if I'd done that.
So I'm not saying that I think their grock coin
has any value. I know that he's mobbed up. I
know that he knows President Trump really well. I know
Trump wants to be a crypto king. I know how
DC works. I get a sense that his coin might
be one of those coins. It ends up being a
quote stable coin, so I went in to go try
to buy it, and I had to buy a coin
to get his coin, so I had to I couldn't
buy it with US dollars.
Speaker 3: Oh yeah, yeah, yeah, he had to convert to a
stable coin.
Speaker 1: So I had to go to a coin to buy
his coin. Right, Okay, I read that a couple different ways.
If I didn't do it, because I don't know enough
about those coins to do it. I was making a bet,
pure and simple, plain and simple, making a bet that
this is going to be a big coin. But Elon,
it seems so smart that you have to buy a
coin and then sell it and then if all these
are the coin's going into the grock coin, it seems
to me he's driving up the value of grock coin
and driving down the value of other coins. Am I wrong?
Speaker 4: What platform were you on when you were doing that?
Because you had to go on a trading.
Speaker 1: Platform, So I never got to the trade. I got
to the grock coin website and then it was telling
me you need to go select a coin to do this,
and that's where I stopped because I'm like, wait, I'm
not sophisticated enough to know which coin to select. But
it seemed like a smart move.
Speaker 4: So so here here's the way generally speaking, that works.
Speaker 3: Okay, okay, So think of a platform.
Speaker 4: You know people like everybody goes Schwab, Right, Schwab is
a trading platform for investments.
Speaker 3: Okay, Take a company like coinbase.
Speaker 4: Coinbase is effectively a Schwab for cryptocurrency. Okay, Now this
work gets a little bit different. The easiest way to
understand what they're doing there is they're saying, okay, come
here and make an account, and then we're going to
convert your dollars into what we call our native coin, right,
and what the native coin is effectively are poker.
Speaker 3: Chips in the casino.
Speaker 1: That's hot side.
Speaker 3: Yes.
Speaker 4: So so it's like everybody converts to their stable coin
or their native coin of choice, whatever platform you're on
is going to have a different native coin, and you
convert to the native coins, and then the native coins
are what you use. And the native coins are supposed
to maintain a level value, right They're supposed to. Yeah,
they're supposed to.
Speaker 3: So that it.
Speaker 4: And this is one of the issues with the like
why can't you just get on that platform and exchange
in dollars.
Speaker 3: This is one of the problems with that industry is.
Speaker 4: That then effectively, and not every not every exchange does this,
but but we've seen this involved in some of these frauds,
which is those quote unquote native coins they have a
value on that platform, right, yes, well they can also
they can also you know, mess with or or you know,
manipulate the creation of those native coins. So I'm not
saying they all do this, they don't all do this,
but well, look, when I look at the whole cryptocurrency deal,
the best analogy I can give, and a lot of
people won't know this reference, but it just it reminds
me so much of the junior mining industry in the
early eighties in Canada, meaning the pump and dumps everywhere.
There's so many similarities between that and the whole meme
coin phenomenon going on right now, and it's just rife
with fraud. And that's why I just tell people like, oh, look,
if you want to play in that, if you want
to play in that arena, and we're not doing it
for you, but if you want to play in that arena. Now,
we've we've had incredible success trading bitcoin, and we don't
always own it, but our clients have owned as much,
as you know, one and a half to two percent
of their portfolio at the most in bitcoin at times,
and we'll play with it, but we're always going to
keep those things very small because at the end of
the day, you may think bitcoin's going to a million,
there's a lot of people saying that what is the underlying.
Speaker 3: Value of it?
Speaker 1: Nothing zero.
Speaker 4: It's yeah, there is no intrinsic value. It has no
cash flows, it has no assets, it has nothing. It
truly is a reflection of what the it's It is
an experiment of the greater fool. And I'm not saying
that you're a fool if you own bitcoin. But the
greater fool theory is stocks go up in price because people,
not because earnings drive them higher. They typically correlate, but
stocks go up in price because people are willing to
pay a higher price for the stock period, end of story, right.
Speaker 3: And so.
Speaker 4: That that's the dynamic you've got going on in crypto.
That it's that greater fool theory, meaning what you're relying
on is somebody to come along that is willing to
pay a higher price than you. But it's completely subjective.
Speaker 1: And I'm looking at the thing with grock Coin saying
I'll bet on that casino. Yeah, sure, of course this
is going to get big. It's Elon Musk. Of course,
there are people going to rush into it. They're going
to rush into it for ideological reasons. The left is
going to attack it for ideological reasons. President Trump would
probably be likely to put, as I said, the grock
coin into some you know, government mix because Trump wanted
to go buy a bunch of coins. Now, is that corrupt? Yeah,
it's corrupt. So but I'm mininged to bet on that.
But I'm not willing to go bet on a coin.
Now I have to go research stable coins. But none
of them are stable because none of them have any
intrinsic value. There's no armies, there's no you know, in
the United States, what do we have. We have our
land mass, we have our armies, we have our weapons,
we have the natural resources in our soil. We've got
the labor of the people. I mean, there's a lot
here that backs our dollar, which came off the gold standard,
which I rate as a mistake. But there is intrinsic
value in the United States. This is very much like this.
This is very much like this. I'm picturing a fifty
year old dude and he gets his way into let's
say he wants to work in Goldman Sacks, and he
gets into Goldman Sacks and he's in an interview and
the hiring mantresses, So why do you think of goldmun
sacks material? Ah, And I was the most popular kid
in high school, and I was jacked. I can show
you pictures I had abs and you know my body counts.
I'll say something. I hit that high school thing so hard.
So what is the worth of your popularity now? No,
but you don't get it. I mean it's like if
if you held a party and I wasn't invited, people
didn't come right. So behind you is the door and
don't let it hit you in the way out. That's
what I'm looking at with these stable coins. They're not
stable and Elon Muskus he wants me to purchase those
coins for to get a chance at his coin.
Speaker 4: Well, and that so if you want, if you were
going to do that, you can do like you can
do it. But what I would tell people is just
don't hold that native coin or that stable coin for
any period of time. Convert and purchase the coin you
want immediately, Okay.
Speaker 1: And that seems like a little work forgive me for what?
Speaker 3: Yeah? Well yeah, and and and the work for what?
Speaker 2: Right?
Speaker 3: What is the value of what it is that you bought.
Speaker 1: I just want to bet on Elon Musk Yeah, well
I just want to drop I just want to drop
a couple hundred bucks into the slot machine labeled Grock coin.
Speaker 4: Well, yeah, then you got to flip into the native coin,
so you got and then you just convert instantly into
the into the other one.
Speaker 3: But which you can do. People do that all the time.
Speaker 4: But my advice would be, if you're going to do that,
do it immediately.
Speaker 3: Do not sit in that native coin.
Speaker 4: Because like you said, right, is there some value we'd
assigned to the grock coin. Well, well, again, it effectively worthless,
but it's less worthless than the native coin because it's
tied to musk, right, so there is something there. But yeah,
if you're going to do the and quite honestly, Todd,
when I look around at the world today, it's one
of the reasons that we're invested the way we are.
I think all of this nonsense and all of this
craziness and greed that's driving all this, I think the
real investment opportunity is the other opportunities that's created, right,
Meaning when people are pumping all this money into this
thing over here, it's not going into this thing over here. Yeah, right,
And I think I in my opinion, I think everybody
chasing the coins is literally going in the wrong direction.
I think the investment opportunity are all the real assets that,
in my opinion, are artificially cheap due to all the
kids chasing the nonsense.
Speaker 3: And so I look at it. When I can buy.
Speaker 4: Companies that are growing at fifteen or twenty percent a
year and are paying me at twelve and a half
to thirteen percent dividend with a clean balance sheet, I
like that a lot more than buying some dude's coin,
you know what I mean? Right, So, and that's and
that to me, when you get into these environments of
euphoric nonsense, where are looking around going what's going on?
Speaker 3: The one trigger that.
Speaker 4: Is I've learned to have go off in my mind
is when you see a bunch of people doing a
lot of irrational nonsense, there has to be and it's
usually high quality, right, like uh you know, uh, you know,
foundational type stuff that simultaneously is going to be way
too cheap, right, because what do people throw out? Like
if you're going to sell stocks out of your portfolio
to buy a mean coin, You're probably not going to
sell your Tesla.
Speaker 3: You're probably going to sell your General Mills.
Speaker 4: Right, You're probably gonna sell your Stalwart, your Coca Cola,
your McDonald something like that, Right, and so what happens
and you can see that today.
Speaker 3: I don't think those stocks that I just mentioned are cheap.
Speaker 4: But when you go look at these some of these
boring companies, you know, we just like I think, I
told you we bought an airline, an international airline that
is doing phenomenally that the future looks incredibly bright for
and there trade. We bought them at a at a
twenty percent discount to their net asset value, paying a
six and a half percent dividends per year, and the
things trading at six times earnings, where it's counterpart in
the US is trading at twenty four. And so you're like, I,
So I'm seeing all these opportunities, and I'm getting sitting
there going, yeah, you know, this whole mean coin thing
that it is unveiled a lot of opportunities.
Speaker 3: I just don't think it's in mean coins.
Speaker 1: Oh you know, it's so funny you mentioned airlines because
I was just mentioning. I was just remembering on one
of the greatest three actor scenes in the history of movies,
Michael Douglas and Charlie Sheen and Martin Sheen in Wall
Street and Gordon Geckoin the Kirk douglas character, Kirk Douglas
is that who is Mike Michael Michael Douglas. Michael Douglas
does this incredible pitch and Bud Fox Charlie Sheen is
involved in the pitch about how they're going to take
this little regional airline and make it huge. And the
pitch is over, and there's Martin Sheen, the guy who
represents the union workers, and he laughs, he laughs his
head off. You don't care about my men or my airline.
You want to piece us apart and sell us for parts.
You don't care about the airline business. And then he's
saying to his kid in the elevator, son, Son, there's
real value. We move people. My men work on airplanes.
We get families to graduations and funerals. There's real value here.
This guy's not selling value, son, right, this guy's selling
smoking mirrors. And it turns out, of course, you know,
Charlie Sheen's character is furious his father's father just doesn't
get it, and sadly turns out his father's right. And
Bud Fox has a lot of time to think about
that he was in prison and wearing wires and going
after people like Gordon get go, man Zach. What a
conversation today, I am. I It's hard for me to
say this, but I was legitimately a bunny when it
came to thinking of insider trading laws. I legitimately thought
you could get more trouble than me or anyone in
the podcast family on the radio show Families, We anyone
listening to this. You can get in more trouble overhearing
a conversation on a subway train and making a trade
based upon that. If someone ever found that out, you
could get in more trouble than congressmen and senators who
have the detailed they have the the literal deal points,
term sheets, and contracts in front.
Speaker 3: Of them, and they regulate those industries.
Speaker 4: Yeah, right, and they regulate those industry so they have
incredible inside knowledge, they have incredible inside access.
Speaker 3: Right, If any.
Speaker 4: CEO of Nancy Pelosi calls any CEO in the country,
they're picking up the phone or they're calling her back. Right,
I don't get that same kind of treatment. So you
naturally you should be held to a higher standard because
of the access you have information. And it's the exact opposite,
it's the exact opposite. Would I get tagged before you. Yeah,
I'm more visible. I manage other people's money. But bottom
line is, if you and I both make those those trades,
we're both looking at the same we're both looking at
the same problems.
Speaker 1: Well, maybe you and I can have the same jail soon.
Speaker 3: Yeah, well we'll work out a lot.
Speaker 1: Yeah, I know, I call top bump.
Speaker 3: Yeah that's fine. I'm not gonna fight you.
Speaker 1: Sounds good, all right, Thank you, Zach Wise counsel Day
Todd Herman Shaw appreciate you very much. And remember, Zach
and I will be in portavart To Mexico early June,
hanging out, going to dinner and love you to get
down there. But that means you should get with renewed
dot Healthcare as soon as possible. This is a Todd
Herbert show. Please go, be well, be strong, be kind,
and please make every effort to walk in the light
of Christ.