Speaker 1: Cultural and financial change all wrapped up together has come
to Washington, d C. And the people there don't like
it that much. We'll talk with my friend and brother,
Zach Abraham, chief investment officer Bulwarck Capital Management, will do
this with the help of God Almighty.
Speaker 2: But Todd Herman show is one disapproved by big pharma
technocrats and tyrants everywhere from the high mountains of Free American.
Here's the Emerald City exime.
Speaker 3: How many else did you drink the Todd.
Speaker 1: Herman Today is a day the Lord has made, and
these are the times, so wish God is the saturitude
we shall live. That was a hot mic moment. It
was just Zach asking me how much water I drink
per day. I drink for about four hundred and twenty ounces.
Speaker 3: Of water a day, sweet mouses. Seriously, Yes, good golly.
I thought I was getting crazy at like one thirty one. No.
Speaker 1: And I'll tell you why I do that is because
when I tried to put on muscle as an old man,
and I worked with this guy I'd been a Seahawks'
strength and fitness coach and nutrition coach. He said, in
order for you to have any shot at doing this,
You're gonna have to eat about three hundred and sixty
grams of protein every day, which means you have to
drink forward and sixty ounces of water. And I said,
what if I don't, he goes, you will get kidney stones.
I said, I'm not saying he said, I'm not saying
you might. I'm saying if you do not have at
least forwarded and sixty ounces of water every day, you're
going to get kidney stones. It's not a it's a
question of how many you get because.
Speaker 3: Of the amount of protein.
Speaker 1: That you got to eat, right, and that your kidneys
are going to have trouble metabolizing. If you see me
handing something off that's offset going to, Alex is going
to actually be kind of to give me some of
his water since I don't have any. Did you watch
the President's by the way, It was performative, but think
for a good reason. He is battling a counter cultural revolution.
He's leading that, so I think we had to have
these performative moments like name in this park after this
young girl was killed by the illegal immigrants. Did you
watch that? Watch clips of it.
Speaker 3: I'm gonna be completely honest with you, Yeah, so what
my my other portfolio manager that lives in London was
in town. Okay, so we were out of the dinner
last night. I have read some summations, seen a couple
of the clips here and there, but I didn't get
a chance to watch it all.
Speaker 1: Did you see the gorgeous moment though online of the
Democrats who decided to meme themselves.
Speaker 3: Yes, I read it. I read about it. Well, will
you walked me through what you was? Like? I want
to hear your version because I just saw a quick
and dirty breakdown of it on Twitter.
Speaker 1: Well, I'll tell you this. I think President Trump is
the first president's, first Republican president to engage in the
in in countering the culture, the cultural revolution. Our country
has been pushed their cultural revolution. So he does these
performative moments, like prior to this speech, they brought a
young woman who had been given a traumatic brain injury
when a man playing against her in volleyball, you know,
basically assaulted her. That's performative. Okay, that's not policy. Trump
has already created an executive order to you know, ban
federal funds to states and schools that allow that to happen.
Pam Bownie's not enforcing that, but maybe she will, so
that's performative. I saw that, and I saw that the
Democrats decided to take these signs that look like dilly bars,
like back in the old days from Darey Queen, you
remember didilly bars? Yeah, and write the little round messages,
so little popstacles, sick and a round message. False is
what it said, false false, And all people have to
do is put on it. I don't know what a
woman is. I'm voting for men in sports. I steal
from taxpayers. And they were doing it live time as
this thing is happening. These guys are being made memes.
And this is so impressive because when you're fighting a
cultural revolution, political means won't end it. In this culture
you have people going, actually, they're actually right, they don't
know what a woman is.
Speaker 3: I thought it was bilant. Yeah, no, it is brilliant.
And I think those are the those are the strings
on the sweater that you need to pull from. And
you know, this is one of the reasons why and
I know you and I have talked about this, but
it's one of the reasons why I appreciated Trump's tone,
especially in the last three months of the election. And
I hope he adheres to it because, like you and
I have said, man soun sue, when your enemy is
defeating himself or destroying himself, don't interrupt, right and just right.
Just put a camera and a microphone in front of
these people and do not interrupt. Let them speak stream
of conscience, Do not get in the way of it,
right right, because they will. You know, look at what
they're doing. They're disagreeing with you, standing against a grown
man giving brain injuries to a teenage girl. Right, So
if that's the side of the argument that these people
want to stand, let them right, right right, let him
defend that ground.
Speaker 2: Right.
Speaker 1: And there was another performative moment where and I don't know,
I kind of bore false Wood this early this week
where he was saying that al Green, Representative Green, was
he it was his turn to get kicked out of
the speech. And maybe he really was outraged because he
is that you know, virtually brain damage or spiritually captured,
that he thinks better women. But he he with his
cane getting removed by the sergeant at arms. I think
what they intended to do, if they did put him
up to that was to get Trump on tilt, to
get him to say something, to be aggressive, and instead
the President stood there with a smug smirk on his face,
a smug smile, doing nothing, just letting the process run
its course. And Speaker Johnson had the guy removed, and
to Green's credit, he didn't hit anybody with his cane.
He didn't try to engineer it. I can't breathe moment,
But that showed great restraint because President Trump hasn't always
had that restraint. Right, Okay, that's always understandable.
Speaker 3: Okay, I'm the guy where the lack of patrons come from,
with what they've done to him. Oh, oh my goodness.
Absolutely right, So that's the good.
Speaker 1: There's a challenge ethically, and you warned us about this challenge,
so I want to get to that. So we'll get
to that with Zach Abraham, Chief and Jest Officer Capital Management,
because we're going to tell truth about things related to
the Trump administration, even when it's going to anger people
who are huge fans of President Trump. I support his policies.
I love ninety percent of what he's doing. But we're
going to call things like this out. And we'll do
this in just a second, because corruption is something we
don't like in this program. I can't stand the corruption
of the medical field. I just now confirmed through text
with my friend Steve Anderson, who runs re New Healthcare.
I'm going down there in April and I'm going to
get stem cells in my left shoulder what never got
stem cells because it's flording with an injury again. And
you and me and Zach are going to go down
in June. So we're going to go down in June.
We're creating that date. Put that in your mind. Get
down to Renewed Dout Healthcare and get your treatment plans
started now, so you can hang out with me and
Zach while we do a bunch of shows down there,
hang out in the beach. What I'm gonna get in
my shoulder are stem cells that are going to get
in and destroy inflammation and then rebuild what is probably
another tiny little tear in muscle intended tiny, May it
stay tiny, because I'm in the midst of the CrossFit
open those things. Those stem cells come from placentas in
umbilical cords only. And the reason I use renew is
because they are the best at this, proven by the
fact that they culture these stem cells in a world
class lab. They've got the largest hyperbaric chamber in North America.
They have located themselves across the street from a luxury
inclusive resort. And I will go down and I will
walk five minutes for treatment. You can have the same
thing for pain, carpal tunnel, even traumatic brain injuries. I've
seen great results with this. Zach knows some people who
couldn't get arthritis out of their hands. This stuff destroyed
the arthritis. It's renew our E n U e dot Healthcare.
Please tell them you're part of the Todd Hermer Show family.
R E n ue dot Healthcare. So, Zach Abraham, chief
investment Officer, Bobert Capital Management, we are not going to
shy away from talking about some of the ethical challenges
with President Trump, or at least occasions where this could
be the case. So there's a crypto mogul and he
made an interesting decision. This guy's name is Justin's son,
thirty five year old, a Chinese crypto entrepreneur. He decided
to invest seventy five million dollars into a certain coin
and he'd been under investigation for corruption and the SEC
has decided to stop to take a pause on that.
What coin did he invest in?
Speaker 3: The Trump coin?
Speaker 1: You say, with reluctance and not a bit of pleasure.
You warned us, You warned us about this.
Speaker 3: Yeah, it just like I said. And I thought your
preamble was perfect, because the reason that I'm calling that
out is because I'm cheering for him so much, cheering
for the president. Yeah, one hundred percent. The reason I'm
calling it out is because I think that the current
situation is too dire to risk the optics, you know,
And it was the analogy you and I used about
it talking about it the other day about I can
see the guys I'm blanking out scarface, uh, Chicago mobster, untouchable, elliot,
alcohol clone right in alcohol, just complete brain brain freeze there.
Speaker 2: You know.
Speaker 3: It was like in the Untouchables, the movie The Untouchables.
You know, they went around and they found guys that
were beyond reproach because you knew that if we're wading
into this cesspool, we must have white hands, we must
be clean, we must be beyond reproach. And when you
look at what he's taking on, it just scares me
to see these these types of things around him and
around the administration that can so easily be taken advantage
of situation. I mean, for instance, look at this situation
right when and and quite honestly, I think the mainstream
media is at this point is probably just too stupid
to catch on to it. But but they will. They're
you know, they're gonna come right out of the gate.
Oh look at this obvious great Okay, most plausibly, Trump
had absolutely no clue who was buying it. I bet
you it's probably there's probably a situation where Trump, I
bet you Trump doesn't even know the guy bought seventy
five million dollars worth of coin. Okay, that's bet I'm
willing to make the problem is the optics are off right,
And what if he did know?
Speaker 1: What if he did know, John that Junior knew and
all the things we said about Hunter and we were
right about Hunter.
Speaker 3: Yep.
Speaker 1: Hunter is an unregistered fore an agent. He should be
in prison. Other people would be in prison. But what
if Eric Trump or Laura Trump or someone in the
Trump friendly Because at my understanding is they all have
a piece of this that they knew. I don't want
it to be the case because I'm rooting for the
president to win the culture war because he's the first
and only rep Publican president to ever understand there is
a culture war and God's using him. I don't even
think President Trump fully understands the way God's using him.
Speaker 3: Oh yeah, yeah. I mean I don't know that any
of us fully you know, well, I know that none
of us fully understand it, right.
Speaker 1: How God for him?
Speaker 3: Yeah, oh yeah, right right. The chess means the chess
pieces that are in movement right where they're going, the
gambits that are being played right now on our behalf,
and that we're a part of some or not, you know,
all these different Indians and outs. What I do know though,
in these scenarios, like I said, it's just you know,
it's just common sense or it's all too uncommon. But
in terms of leadership, in terms of tackling things like these,
when you're going after dirt, cleanliness has never been more important.
And just the optics around it, like I was saying,
it does nothing but distract, It does nothing to pull away.
And then like you said, the other part of it
too is when you're talking about sums of money that
are this large, and this is what I was concerned about,
the day after this announcement got made that they were
launching coins. Nothing's to stop anybody from going in there
and buying two hundred million dollars three hundred million dollars, right, Okay,
Now Trump is rich, but three hundred million dollars is
three hundred million dollars, right? Even Trump's gonna across the
street for three hundred million.
Speaker 1: Yeah, And so you and I if we lose twenty
bucks for an ago, where the heck is that twenty yeah?
Speaker 3: Yeah, yeah, yeah yeah, so yeah, so so you know
I just did this stuff. Yeah, it just troubles me,
and it scares me. And the other reason why we
have to talk about it. And I was having this,
you know, I was having a conversation with my children
about this the other night, which is, you know, part
of leadership and part of choosing the hard road or whatever,
is that you're gonna hold yourself more importantly than anybody
else to these standards, right exactly, and that I will
not ask I remember my dad teaching me this. You know,
one of the most important aspects of leadership in my opinion,
is you know, I will not ask of you something
that I'm not willing to do myself right. And what
is the left not willing to do. They're not willing
to be honest at all? Winning political right because if
you don't believe, you're godless, and winning competitions on this
earth is the only thing that matters. Right, when you
believe in God and you fear God, you realize that
we're going to win some, we're going to lose some.
The important thing is how we do that because right
because we know we win the war, we got to
make sure we're on the right side. But it's how
we do it that's the most you know, ends justify
the means we're called to live oppicely exactly.
Speaker 1: There's going to come a time, you know, and and
where all the treasure you built up on earth, when
you die and you go in before the Lord, before
the throne of judgments, you are going to know at
that point, oh that stuff is all gone, right, and
these where's my lawyer? Now you don't get one. It's
just you and Jesus. You don't get a lawyer. And secondly,
God those everything has already made the judgment. And as
I'm looking at this, I also look at this side
by side analysis, Zach, I mean you're the chief investment
officer Bold Capital Management. It's I mean, yes, it's a corporation.
It's a separate thing from you. And something tells me
that if you had, for instance, say you know, had
a brother in law invest in a company, and suddenly
you started talking about that company and suggesting that people
invest in, I would think that the SEC might come
along and say, hey, Zach, so why are you pumping
this company your brother in law invested in? And I
don't think I don't want to answer that question, would suffice, right,
but for some reason, but then it extends further. So
the SEC was all over this guy. They paused the case,
but now the story thickens. This is something President Trump
posted this past week. A US crypto reserve will elevate
this critical industry after years of corrupt attacks by Biden administration,
which is why my execut Cative Order on Digital Assets
directed to Presidential Working Group to move forward on a
crypto Strategic Reserve that includes X RP, S O, L
and A D A I on make sure the US
is the crypto cap of the world. We're making America
great again. Okay, let's start first of all, you, as
the chief investment Officer bower Kepital Management, Zach Abraham, you
take just that temperature, what do you respond to that,
it's just a financial mind and then we'll talk about
more corruption.
Speaker 3: Again. Brings me no pleasure to say this. I think
it's completely nonsense. I don't. I don't think they look
and here's why, a strategic reserve this stuff doesn't have IP.
Speaker 1: Intellection.
Speaker 3: What in the world do you need a strategic reserve
of something that there's got no intellectual property of it.
You could have a team, you could have a team
of developers at any point you wanted just copying the
IP say it's sponsored by the US and stick it
out there. I like, there's no point to this. I
just again, I again, I would just sit there and go,
this is a potential distraction that could take away from
what's really going on. The vast majority of coins he's
talking about, and they're completely worthless. I think the vast
majority of those coins are completely worthless. I think the
only thing really valuable in cryptocurrency is the blockchain technology itself.
I think that's the only thing that will really live
on from this. Bitcoin I think might be a store
of value, but you know, you're sitting there watching it
right like, So you know, I mean, let's look at
bitcoin and I and you know, I hate even bringing
this up because people go Zach doesn't understand crypto. Yes, guys,
I understand crypto more thoroughly than almost anybody you hear
talk about it because I remember the day bitcoin was launched,
we were looking for dollar alternatives. I love the idea
of bitcoin. I love that, I love the blockchain. I
love how elegant it is perfectly put together. That's not
the issue. The issue with crypto has never been about
is crypto good? Is the technology good enough? The issue
with crypto is central banks have the soul ability to
create money out of thin air. If you think that
any elected body of people is going to forfeit that singular, right,
you're out of your mind. So it just I just
they should be staying as far away from the crypto
universe as they possibly can because all of the greatest
crooks and scoundrels in this industry have invaded that industry
because it's the wild West. We've seen it before. It's
like the junior mining days back in the early eighties
on the Toronto Stock Exchange, right, ninety percent of every
new issue was fraudulent in some way, and cryptos much
the same way.
Speaker 1: Yeah, and this guy Ben Norton wrote this Benjamin Norton
about this very event. This is on Twitter. Jaw dropping
coruption into the US. Trump's billionaire cryptos ares heavily invested
into fund whose top five holdings are in the five
US Government Crypto Strategic Reserve. Mere hours before Trump announced
that someone bought two hundred million dollars in ethereum and
bitcoin on fifty times levelge So number one, if they're
doing fifty times leverage, they're counting on that going up.
It would seem to me.
Speaker 3: So in the okay, So legitimately, if this was done
in equity markets, that trade would get flagged by regulators automatically.
Automatically because the like you just said, when somebody is
making a bet with that much leverage, they're either insanely reckless,
which if they're reckless, they'd have a hard time getting
a marker that large, right, So they're probably not. But
what it tells you is there's a high level of certainty.
Where there is a high level of certainty, there is
insider knowledge, like I cannot tell you literally, probably greater
than eighty percent of inside trading prosecutions that occur occur
because the first sign of trouble is they see a
leverage bet like that. It's just it's telltale sign. So
you don't go fifty to one leverage on something that
you don't know is going to hit.
Speaker 1: Yeah, and if you're going fifty to one leverage, if
there's any interest on that loan at all, you're going
to pay back more than fifty times.
Speaker 3: Oh and the margin calls, I mean, the amount of
collateral you got to if that thing goes against you
five percent, right, A five percent? Well yeah, because you're
levered fifty to one, right, so if you you get
a five percent move against you, you're down two hundred
and fifty percent of you're originally invested capital. I mean
that might not be the exact, but it's somewhere around them.
So yeah, no, yeah, So I mean, yeah, I mean,
if you if it, I mean, a one percent loss
on a position that's levered fifty to one would trigger
a margin call. A one percent, yeah, because a twenty
five percent move against your basis triggers a margin call.
So yeah, they you just wouldn't make that bet unless
you knew.
Speaker 1: In a nation that has the fiat currency for the world.
This is one thing that's remarkable to me and it
never o curds to me until you explain this to me.
H and at Bulwark and you have to track to something.
You know, It's not like you don't have a little
bits of money here or there in crypto. You've told
me that from time to time bulwork.
Speaker 3: Does you've made great money trading bitcoin? Yeah?
Speaker 1: Right, okay. But the other thing about this is that
these things are these are fiat currencies themselves. They are
designed to destroy a fiat currency, and they get more
fiotic every day. I made that word up, but I
think that's a pretty good I like that. I like,
Am I wrong? Or have they become more fiotic? Particularly
now that there's a strategic reserve? The United States is
basically saying, hey, guys, we're buyers.
Speaker 3: We're long.
Speaker 1: Didn't he just announce we're long on this?
Speaker 3: Yeah? Well. The other thing is too is in a
world of fiat currency, who's the guy that rules. It's
the guy. It's who's whose fiat currency is the least
FIATI that everybody wants. It's it's the guy with the
biggest military. Oh, I mean, right at the end of
the day. I mean, think about it if we're ranking
because I mean there's really right, there's what I mean,
if we're ranking city states or or or you know,
sovereign states in terms of power and ranking them. Right,
there's two primary ways we're going to look at that,
which is military might and financial you know, solvency financial
wherewith all things that nature, Well, the best way to
look at military and I might is look at the
rank of their their military compared to everybody else out there,
you know, especially those others that would be global players. Uh.
And then and then on the financial side, it's not perfect,
but you know, a really easy way to judge who
was the biggest financial player at any given time in
the world look at whose currency was most widely utilized. Right,
So yeah, I mean it's they are getting FIODI just
it's they don't have they don't have a Congress, they
don't have a Federal Reserve Bank, and they don't have
a military and.
Speaker 4: That.
Speaker 1: Other than that, yeah, fantastic. I've had this conversation with
tons of time with friends about this who are big
into crypto and they'll say things like it todd, do
you don't understand blockchain? And the fact is that government
can't replicate this. We can track all the trades, so
this has become worth something and there's nothing the government
can do. And I'm like, wait, guys, wait for a second,
hold on, like to you don't how hard it is
to crack this, to hack it? It's okay, but wait stop?
What about when the government comes along and says, yeah,
we'll go and take your service or we'll just take
you Because I'm here to tell you if a president
can seize gold.
Speaker 3: I was just going to say, this is the same
government that made gold ownership illegal in thirty three I believe. Yeah, right,
So I mean, what are you guys talking about?
Speaker 2: Right?
Speaker 3: And if you don't think these people can, I mean,
think about think about how they hacked Mount Dox. Remember that. Okay,
why is anybody sure that that wasn't done by government actors?
Speaker 1: Because I would never do that. That would be like,
you know, wrong or something.
Speaker 3: So I got something called the Twitter files that I'd
like you to read. You know, no, and look, and
what these people need to understand is I've taken so
much blowback on this, and I look at them and
I go listen. I hope you're right. I'm cheering for
bitcoin when I tell you, I don't think it's going
to be what everybody says it is. It's not because
I don't think it's superior to any fiat currency out there.
I do. I think it's much superior. Okay, but there
is an issue. It will never ever be a reserve
currency because it is a deflationary asset bar none, full stop.
Anybody that argues that knows nothing about currencies or money, okay,
it cannot be. The second if you're also betting that
the central banks and the powers that be are going
to either lose control or forfeit control over the international
monetary system. If you think that's going to happen, I
hope you're right. I hope you're right.
Speaker 1: But it's not.
Speaker 3: It never has, it never will. You're out of your mind.
Speaker 1: Now, power never at that level surrenders power on its own.
And Zach, you know at at Bulwark, you guys have
to track this so carefully. And I love the fact
that you're able to speak honestly about it and that
you're able to actually do this from a perspective of
rooting for it to win. You can know more about
Zach just going to know your Risk Radio dot com.
And I want to just real quick, I want to
I want to transfer topics a little bit Zach here,
but I want to I want to keep on the
track of corruption with this credit card move President Trump made.
But then there's something else. You said something the other
day about government spending, and I was reading the coverage
over you know, a lot of the economy, and I'm
trying to read leftists and people who are panic about
the economy, and there are people pointing out that President
Trump is crashing the economy by lowering government spending and right,
And I want to address this from something you said
the other day about how government debts and government liabilities
are actually sometimes things that can on the surface, appear
to be helping the economy. So we'll talk about that
was Zach Abraham, Chief and vestm officer bol Capital Management.
There's many things you can do that appear to be
helping you. So one of the things that might appear
to be helping you is taking something like benadrill to sleep.
So I've done this. I was just going through a
form I'm seeing my hormone doc coming up this week
to I see her on a quarterly basis, and she
always said, as we go through and do this form.
And I was down to the section on sleep. I thought,
that's right. I did used to abuse better drill to sleep.
And guys, I get it. It knocks you out. I
get it. You're not alert. You have the illusion of sleep.
Let me explain what's actually going on. You are passed out.
You don't have a rem cycle, you don't have a
deep sleep cycle. You are unaware of things because your
brain has effectively been Deadn't that is not sleep. It's
very similar with melatonin. That melatonin you can man and
I ate melatonin for a while. I'd eat a couple tablets.
That was good. What if I eat four or five
and I was completely unconscious to the world and then
all of a sudden, I'm confused and I'm anxious and
I didn't get my refrag done in my brain. I
didn't get this file stored. That's because it's not sleep. Okay,
it's like being It's like being knocked out. Guys, just
do this. Go to magnesium breakthrough. It alleviates stress by
controlling a stress home or cortisol. That's my experience with it.
It helps me fall asleep, the pleasure of just naturally
losing consciousness. When I do wake up, I go back
to sleep. And guys, if sleep is a super big problem,
buy Sleep Breakthrough along with Magnesium Breakthrough. Stack those two
things together. My experience has been it does not fail
to deliver sleep. So here's how to save ten percent.
Go to Bioptimizers dot com slash tod use promo code
tod to get tempercent off all the biptimizer's products, including
Magnesium Breakthrough and Sleep Breakthrough. When you subscribe. That way
you don't run out of product. That way you don't
run out of sleep. They'll send you exclusive discounts and
free gifts when you subscribe Boptimizers dot com slash todd
promo code Todd. So Zach, President Trump did an extraordinary thing.
Probably a judge would tell him, you can't cancel people's
government credit cards. Not too legal. So he's lowered the
spending limit to one dollar per card. And this is
coming after we've seen people's spending. I think they said
it was a total of ninety billion dollars in transactions. Ay,
I wonder if big banks love that. If they love that,
and then B or C we're learning that they're actually
been spending things money on things like getting cash out
of the cash machines at casitos. That seems that seems corrupt.
If you saw that on an expense report at Bulwark
Capital and you pulled that up, or your wife she's
the CFO and she sees cash withdrawal Bulwark card Las Vegas, Nevada.
That ends, How.
Speaker 2: Wow?
Speaker 3: It ends with some cardboard boxes and some taking a
long walk down the halls with the way that is. Yeah,
I mean when everybody's in the office, oh man, no, no, yeah,
And I know, And I mean to ask would fall
I wouldn't even ask questions, just see you later gone done,
just because not only is it's a betrayal, right, and
we take really good care of our people and pay
them really well. And I'm like, yeah, if you're gonna
and and and you and I were talking to offline
about this. This is the whole hilarity and ridiculousness of
just the insanity of this whole situation. Listening to people
like you know, throwing fits and freaking out about this
kind of stuff in corporate America. Okay, where where there's
not a fiduciary responsibility to take care of tax older money,
there there haven't been oaths to defend the constitution right
always in corporate America. These you wouldn't find these charges
on credit card statements. People be fired. You know, you
were talking about Microsoft, and there's actually a guy know,
uh who on the story you said, a guy I
know for a company around here that went to a
casino one night, well, cash out of the ATM at
the casino, and got fired the.
Speaker 1: Next day with this corporate card.
Speaker 3: Yeah, with this corporate card. And that's this goes again
to what I was talking about, which is not only
is their waste that not only is there incredible amounts
of waste in the government, but I mean they're way
behind even just normal baseline corporate America standards. That's why
it's so ridiculous watching these complaints and these moronic media
members that are like You're sitting there listening to these
moronic media members give these like concerning interviews, and I
want to like jump through the TV and look at
the person and go, hey, what would happen to your
job if you did the same thing? Exactly. You'd be gone,
what are we talking about? This is ridiculous.
Speaker 1: It goes, it goes to culture. And I've I've had
some complaints about Microsoft culture in the past. I talked
about when my boss tried to, you know, put write
me up for refusing to sit in a room while
there were girls and women who came in to provide
sec and they're you know, taking cocaine and stuff. And
that was one thing. But there was another guy, and
this was this was Microsoft looking out for us and shareholders.
I was in New York at an industry event and
things got crazy and I don't A. I don't drink.
B I certainly don't drink at work events. And he
got pretty lit. He's pretty senior, pretty high up, and
so then he's doing things like asking some of the
women if they might do a table dance for him,
and a lot of us are going, I bet that's
not going to work because the lady who organized this
event is a lady. Then he decided to go and
go ahead and pay for taking some of the fellers
to a so called gentleman's club, a strip club, and
he kind of maxed out his card that night. So
what I heard later is he said, well, I'll put
it in the Microsoft card. I'll pay it off. They
won't even notice it. So the story goes like this,
About two o'clock in the morning, he's in his hotel room.
He gets a phone call and wakes up. Yeah, you're fined. Wow,
And they had a fraud alert. This is the sorts
of businesses. Our cards don't go in. So that's what
you're saying. The government could have had this. Now that's fraud.
But I want to get into something of a more
serious conversation that a guy Geiger Capital Markets, Economics, politics
rip Paul Volker personal views not investment advice, posted and
he wrote this, holy blank, and Lada fed is now
predicted projecting that Q one GDP will be minus one
point five percent, a contraction. Last week it was plus
two point three. Four weeks ago it was plus three
point nine. And he tracks this and is blaming government
spending and the cuts and spending on this. Elon Musk
responded to this, and I'll share with you what Elon
said in the second. Then we'll hear what Zach Abraham,
chief investment officer for W Capital, says. They're going through
all of this big business, big fraud. Remember that you
have a choice in something you're going to use for
the rest of your entire life, unless you decide to
be disgusting hippie, and in that case, get out of
here with your stick. Your body stink makes me sick.
Alan Soaps is an alternative to the big soap companies
who make their products probably with Chinese slave labor. But
on the positive side, it's excellent soap. It's world class.
It's made by a family of three generations of soap
making expertise. And that's all good. But here's the great part.
You're employing young people who were well in line for abortion.
Because that's what the world would have done to Alan.
It's whatether they would have done to Ian and late
on set autism happened to Amy, and literally people said
to Amy's parents, well, looks like she can't work. Here's
a good institution. She is working, and she works fruitfully.
All these things add up into try it. If the
soap is not world class, they're not a charity. They
don't want charity money. They want to work. They want
their kids to work. They want Amy to work. If
it's the greatest soap you've ever tried keep buying it
Alan soaps, dot Com slash todd. So here's how Elon
Musk responded to this. He wrote, and this sounds like you,
Zach Abraham. A more accurate measure of GDP in a
America would exclude government spending. Otherwise, you can scale GDP
artificially high by spending money on things that don't make
people's lives better. For example, you could shift everyone who's
building cars to working at the DMV. That would result
in no cars and a much worse standard of living,
but GDP would appear to be the same. That's a
really good way to say that. That reminds me of
something you've said. So government spending is a friend to.
Speaker 3: Charts, Yeah, one hundred percent because it adds to GDP.
But like must points.
Speaker 4: Out, it's there's no value, like, there's no value add right,
because you're extracting that money from productive activities yep.
Speaker 3: And then you're recirculing that money into the definition of
non productive activities. Right, So you can even make your
GDP go up, right, I mean, I mean you could
make it look like it's going up drastically just off
government spending. So what did he say about, First of all,
the GDP now cast that the Atlanta Fed does is
probably one of the most accurate out there. The second
of all, it's he's not even under seat, like I'm
shocked at that guy's a job in economics, because that's
that is not what the GDP now cast is forecasting.
It is taking a snapshot right now at this moment.
If these trends continue on this trajectory, it will add
up to a negative. So now that number has actually
gone it to negative two and a half. Okay, but
like he points out, a week and a half ago
was two and a half. So it's been very accurate,
but it is also very noisy. Over the short run,
a B Outside of COVID, this economy has now gone
the longest period of time in our history, and it's
not close. I want to say, it's about previous records,
like nine years you're looking at coming up on sixteen
years of not being in a recession. Okay, when you
see the orgy of government spending that has occurred post COVID, Okay,
the minute you started normalizing spending, right, it's like it's
it'd be like a like a think of a seven
forty seven getting up to altitude, it hits thirty three thousand,
kind of settles back down at thirty two thousand, it
begins cruising. Right. Well, that's what I to us. That
kind of looks what the economy is doing right now.
And they're sitting there going, oh, they're going to cause
a recession. We're like, look, the plane wasn't going to
eighty thousand feet man, right, It's got to level off
at some point, hope. Yeah, And if you're pulling back
on any reins of government spending, it might show up
as a quasi recession. Yeah, okay, but you've got household
net worth a record haze. The other side of it, too,
is when you're talking about the level of spending that
he's pulling back the reins on if it's accompanied with
regulation cuts. But my point is this, what is going
on underneath the surface in the underlying economy will either
make that will determine it, right, like the meaning if
we're going into recession, which to his point, pretty much
every single economic indicator we've been watching over the last
three to four weeks is moving down and moving down
at a fairly quick pace. Okay, so, but but like
I said, I wouldn't say nearing recession at this point.
What I would say is that I would say more
indicators are pointed south at this point than at any
time over the last three years. Okay, So, for for instance,
let's go to like pending homes, pending home sales. You've
got less homes for sale and less home transactions happening
right now than at any time in history, including including
the financial crisis. Okay. Now you look at then you
flip over and look at where construction jobs are right now.
Construction jobs tend to be the number one leading indicator
of a recession. Okay, You've got record employment in construction jobs,
and you've got the housing market it standstill. My guess
is those construction numbers are gonna fall. Okay. You just
got a manufacturing survey from the Dallas Fed not good
at all. Okay, Now they're going to try to put
all this on Trump's plate at some point. Remember when
we talked about when interest rates were gonna go up
and we were expecting recession by the end of twenty
twenty three beginning of twenty twenty four. Okay, those same
rules apply, meaning you cannot get the Kia GDP pop
we've had with the absolute delusion government spending, and when
that normalizes, it's really hard to imagine you not dropping
down one or two thousand feet, right, yep, leveling off
that drop will look like a recession. Okay, but are
you going to see seven percent unemployment? I don't see that.
You know, you're still got record like I said, record
household wealth. I don't see that really going away. But
this is something else that we've been saying is look,
regardless of what you think about Trump and the economy,
one of the biggest drivers of this market and this
financial system here in the United States has been the
fact that we've been the only real major economy because
we are the world's reserve currency that has been printing
to the extent that we have over the last fifteen years. Now,
there's been some innovation too, but one of the biggest
drivers that's been so much different than our market in
the rest of the world is that massive amount of
liquidity that was continually being injected by the FED with
the world reserve currency. Okay, now you've got countries like
China and Germany announcing a very aggressive fiscal policy. When
you look at these the stock markets around the world.
They're just now breaking through levels that they peaked at
in seven and eight. Okay, you're looking at US markets
trading at a record valuation compared to the rest of
the world right now. This is why we're guys. I
love what Trump is doing. Okay, But one of the
easiest trades I've seen in a long time, and one
of the biggestbay or opportunities Todd that I've seen in
my career, is the opportunity that you have right now
now with international assets as opposed to US.
Speaker 1: Okay, I want you to explain this because this is
going to freak people out. I can already feel it.
I'm sorry to be rude, but no, okay, I'm Zachs
can explain this in a second. I'm going to remind
you that next week is Saint Patrick's Day. It's the seventeenth.
If you weren't paying attention on your screen for watching
the video version of this, you're going to see the
beautiful bag that's been created by Tim Krukshank, the founder
and CEO Bonefrog Coffee, that is in fact the Celtic
Cross and it does obviously honor the Lord Jesus first
and foremost, after all, it's across in which he died
as appropreciation of payment for our debt are sins, and
Tim of course is a man of God. Every bag
says God Country Team on it. It also honors the
fighting heritage of the Irish people in that culture. Tim
loves his Celtic culture, so he had this roast created
specifically for Saint Patrick's Day. He had the bag designed
specifically for Saint Patrick's Day. You can read about this
bag and the story and more about Tim's Celtic heritage.
You go to Bonefrogcoffee dot com slash Todd by this
special roast, get the special bag, use it for Saint
Patrick's Day. If you know people are really into their
Celtic Irish heritage, buy it for them. You'll save ten
percent on the first purchase, fifteen percent off subscription coffee,
Bonefrog Coffee dot com, slash Todd. So Zach, this is
the part that's going to freak people out. So Zach
the patriot, Zach loves. What Trump is doing is saying
international assets. Guys, So you got to explain that to
people before everybody runs out of the room shrinking.
Speaker 3: Okay, right, So guys, first, of all financial markets are
like think of Teeter Totter's okay, and they work the
best when most of the money is concentrated in the
middle and the teacher Tartter is balanced. Okay. What you're
seeing right now is one side of the Teeter Totter
is lower and one side is higher than it has
ever been in recorded financial history. The United States economy
makes up fifteen percent of global economic activity or GDPAY,
yet our stock market accounts for seventy percent of global
stock market capitalization. That is a record. Okay. So you've
got a scenario here in the United States where people
are paying ridiculous prices for you, for US assets, and
you look in now, not all of them, but internationally,
we are finding some of the most ridiculously priced, great assets,
great companies, And you know, it's one of the it's
early in the year, but it's one of the reasons
we're up five percent on the year in the stock
market's negative right now. It's early in the year, a
lot to go. But right now, when we're looking at
these international names and so much remember these think just
think about this. These stock markets are at levels they
were at in two thousand and seven. Okay. Meanwhile, our
stock market is four and a half x that level. Okay,
those countries are now announcing aggressive fiscal stimulus, like Germany,
like China. Guys, one of the biggest drivers of US
markets over the last ten years has been the inflow
of outside capital from the rest of the world. Okay,
when you start talking about China and European governments like
Germany announcing not only stimulus but fiscal Okay, what made
our economy go ballistic during COVID It was fiscal stimulus,
not monetary fiscal meaning money was actually getting put into
people's hands. That is happening in Germany, that is happening
in China. Their stock markets are trading it like one
fourth or one fifth evaluation of ours. And so you're
looking at this scenario where the teeter totter's got to
tip back. And we're not saying that US markets are
about ready to collapse. But in investing, Buffett talks about
this all the time. Usually investing is hard, sometimes it's easy.
Sometimes there are layoups. Right, this is one of those
times where these are layups. You're buying companies at valuations
and prices where you're sitting there going, look, I don't
know if this is gonna win or not. But I
can't figure out if this company is around five years
from now, I can't figure out how I'm not sitting
on a double okay, and we've got our portfolio. I
mean it is a It's a shooting fish in a barrel,
it really is. The problem is is that in investing,
all too often people want to do what's hard. The
equivalent of that I use the other day, and I'll
finish this up real quick with the analogy I use
the other day. It's like a guy, a Carnival Barker,
standing out there and he's saying, all right, I'm gonna
pay a million bucks whoever's willing to step in the ring,
but you got to fight one of two guys either way,
if you win or lose, whatever it is. If you
get in the ring and you're willing to fight this guy,
you're gonna get a million bucks. You're like, Okay, well,
who are the two guys I have picked from. They're like, well,
on one side, Mike Tyson and now on the other side,
Steve Rkle, Right, who do you want to fight? And
I'm like, give me the stever right now. US investors
are saying no, no, no, no, give me Tyson, And I'm
looking at him, going, uh okay, I'll take Steve all
day long. You can have Iron Mike all you want,
right I no, no, I I'm going to make a
million dollars too. I just know for a fact I'm
not coming out of here with CTE right right or
alive here right and right now. In US investors, in
my opinion, are making this way too hard when you're
buying single pe stocks that are growing at solid double digits,
that are trading at a discount to book value and
paying you seven or eight percent dividends to sit there
and wait. Back up the truck, baby.
Speaker 1: I got it. That's a solid explanation. Appreciate that. And
Zach and I are going to be together. We have
to figure out a date and you and I actually
have to put together a phone call to figure out
a date in June. And I'm just giving people heads up.
Zach and I going to do shows in part of ourself.
We're going to hang out. We want you to come.
We're going to do this reefly new dot Healthcare. At
this point, please get in line. If you're thinking about
treatment for the stem cell, treatment for carpal tunnel, for arthritis,
traumatic brain injury, to avoid surgery, to recover from surgery.
Please get in line now, because last time, there are
a bunch of people who wanted to be there while
we were down there, and they couldn't make it. They
went and got treatment. Praise God. I'm glad they did that,
and I'm glad it worked for a business partner. But
you have to make sure you get your treatment approved
so you can be down there together. I look forward
to that. Zach, thanks for Wise counsel day, and say
hi to your beloved family.
Speaker 3: I will thanks for having me.
Speaker 1: And this is a Todd Herman show. Remember we do
seek wise counsel. God tells us to do that. Now,
please go be well, be strong, be kind, and don't
make an effort. I mean, just walk in the light
of Christ. Like Zach said, choose the easy way.