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

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his people to chat a bit with him in the

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green room while he was having a champagne and all

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

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

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little bit because sometimes things are just too cheap to

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

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

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

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

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

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and of course with God Almighty.

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

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technocrats in tyrone Sabrian ware from the highd Mountains of

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

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Speaker 1: Todd Herman. Today is a day the Lord has made,

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and these are the times which God has decided we

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shall live. Zach Abraham, my friend and brother, chief and

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vest Officer bow were Capital Management Jointis. Zach, thank you

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for letting me talk to your people this morning, and

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I see that you're well taken care of. How was

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the second lobster as good as the first.

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

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

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and my good buddies Elon and Vivic want to consult

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

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

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of a big deal.

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

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things to talk about today. I read this analysis in

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Nvidio might be more important to the market than the

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FEDS and jobs data.

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Speaker 3: That's crazy.

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Speaker 1: We saw the Nvidia dropped on Wednesday. I think it

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was we got to talk about the World Bank and

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they fear Trump. But let's start with this thing you

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said to me, kind of changing your tune a little

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bit because there's things that are too cheap to pass up.

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And then you said something about the Chinese word for risk.

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So let me just shut my speaking whole and listen

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with my listening and holes.

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

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

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

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And listen there is. It's headlines like that one right

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there that that really boosts my belief in uh in

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

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now where I honestly think and I feel this with

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

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

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because I again, I never want people going out and

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making investment changes or trades based on what they think,

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

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

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that it that statement is true, and yet that is

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also one of the prime reasons why I think this

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is we are going to look back in a not

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too distant period of time and see this as an

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incredible investment opportunity and perhaps even generationally a generationally exceptional

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period of time to invest. And what I mean by

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

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

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market is going to produce extremely underwhelming results over the

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

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

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I just think that when you look at valuations. If

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you just look at history as a guide, whenever you

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

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it valued this richly two other times. This is going

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

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which makes sense. I mean you fast forward at all

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

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most expensive market on one metric, most expensive market another

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

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there with one of the three craziest periods of times

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in market history. And yet the other thing just as

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crazy as all that stuff is. And I think we

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

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

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movement right now is as crazy as it all is

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on the insane side, meaning just stuff that makes absolutely

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

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

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

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

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

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

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point where it literally is time to completely ignore short

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

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

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

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and be like this never bothers me. I am immune

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

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

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

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reported earnings. The earnings included a little bit of a

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delay in their underlying you know, process to build out

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

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

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

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On that news, the stock sold off sixty percent in

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

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was trading at about a sixty sixty five percent discount,

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to where the newly hired CEO had just invested millions

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of his own personal money buying the stock rights at

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

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

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

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

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

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

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going to give you the name of the company, but

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we went back and checked our numbers. At the time

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when we were looking at this in this past week,

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

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when we go look at the resources, the confirmed gold

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and silver that this company has in the ground that

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

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

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

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

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

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

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it to go lower. Because when people are willing to

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pay a dollar for ten cents, you sell it to

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

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willing to sell you a dollar for ten cents, you

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

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I am not telling you to go load up on

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

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you that. What I am telling you is this lunacy

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

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

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A lot of these scenarios, the company has their own

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

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so much. If they cash flow a fraction of what

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

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

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

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fifteen percent.

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

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get it now. And let me take a second here

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and do some we need to do talking of discounts

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and availability. But I want to bring the vidianto this

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

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pay off this thing the Chinese word for risk, because

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you said that in the green room in a second.

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Do that a second. There's a product I use that's

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called wisdom, and it's really sort of an interesting thing

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for this program. This is I think maybe the second

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time this has ever happened to me where I read

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about a product because I was researching food freedom and

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I read about this product called Wisdom, and it caught

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my attention because it's a Bible based herbal blend. So

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I did the research on the guy who founded this.

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His name is doctor Patrick Gintempo. And the way this

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all came about is doctor jen Tempo was in the

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Holy Land. He was walking in the steps of where

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Jesus walked, and he was just brought this attention the

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smell of all these herbs so profound. And then as

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he's doing his Bible reading, he saw that very often

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herbs and spices were treated in an almost sacred sense

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in the Bible, often referred to in the way that

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they could heal. So he got to thinking about what

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would he do to take the Bible and the sacred

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herbs or that are treated sacredly and put them into

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a product. That's what Wisdom is. So this is made

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in small batches, small bruise, it's cold brood. All of

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that locks in the potency, but he goes some other steps.

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It's infused with sound and light waves, which locks in

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the potency and the stability of the product. Now, I

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take this straight. It's a dropper. I put it in

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my mouth. It delivers mental clarity, a sense of calm.

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It's great for the immune system, and it harnesses inflammation

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to help your body. That's actually possible. You can try

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slash todd to save up to thirty three percent on

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order comes with a one hundred and eighty day money

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back guarantee. So visit try wisdomnow dot com slash tod.

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That's try wisdomnow dot com slash todd. So let me

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

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which had on Wednesday they dropped. There were some revenue

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

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

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

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But the fact that it might well be more important

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to the entire market than the Feds and job data

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shows the level of insanity on these popular stocks that

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everybody's buying. Because everybody's buying so more people buy because

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

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that can't buy attention. They can't get attention. And so

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we have all these opportunities for those of us who

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are looking at this from the long view, saying, are

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you kidding me? I can buy a twenty three dollars

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stock for forty cents and just wait until math makes

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a comeback.

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Speaker 3: Yeah, I mean obviously we can't. You know, nobody can

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look at you and say that that company is ever

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going to trade a twenty three dollars right, We're saying that,

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you know, if you do the math, that part of it.

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And they've got some liabilities in the balance sheet too.

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

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disconnect here between the actual value and the perspective value,

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you know, because there's some forward looking stuff into that

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twenty three dollars per share, but the spread is so wide, right, Like,

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you can come up wildly short of that twenty three

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dollars estimate and still make can extra money, you know

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

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these are guaranteed outcomes. But here's the thing. It's not

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just with the gold companies. You see it all over

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

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

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is not as clean in so many ways. I think

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

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

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you know, you see pricing anomalies everywhere because of these

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

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look at Google. Google is a company that is growing

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at fifteen percent a year. Let's go compare it to Costco. Okay,

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Google is a company that's growing at about fifteen sixteen

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percent a year. Costco's growing at about nine nine and

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a half. Okay, Google's margins are in excess to thirty percent.

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I believe costcos are right around four. Okay, at four

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to six, I would say somewhere in there. And I

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might be being generous, but you know, they're retailers. It's

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not great, not great margins. You go look at you know,

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margins are better. Go look at the balance sheet Google's got.

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You know, Costco's doing well. The Googles got, you know,

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ridiculous amounts of cash on hand, they've got a more

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diversified business. You look at all that, then you go

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look at so you know, Google growing at virtually double

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the rate, almost double the rate at Costco margins that are,

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you know, eight to ten x what costcos are. Flip around,

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look at the valuations. Costco's trading at nearly sixty times

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earnings and Google's are twenty one.

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Speaker 1: Right.

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

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

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of what usually if you want to if you want

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to go find out the you want to look through

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history and find out the guys that typically do the

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

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

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

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

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mean that all the things in those categories are going

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to do well. What it means if it's in that category,

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

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

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

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The number one way to manage money over the last

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fifteen years was throw your money in the Nasdaq and

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

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almost the impossible way to the impossible form of investing

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to beat in this whole cycle. Okay, well, guess what

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that creates all kinds of anomalies, which we think is

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setting up the next cycle, which is the inverse, where

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it's going through the indexes and picking out these companies

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

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how good as the pull passive by everything has been

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

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to be the inverse that if you want really good

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and excess returns, you need to be able to figure

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out where the value is because that's going to in

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my opinion, and if history is any guide, that it

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will turn. And when is it turned, it turns when

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the largest amount of people are the most sure that

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it never is going to right. And you're there now,

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So you look at Nvidia like you were asking. Another

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classic sign of this. I think that that headline is

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one hundred percent correct, as crazy as that is. Why,

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because do I think it. Let's not confuse it. I

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don't think it's the most important stock as it relates

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to the underlying economy, but as it relates to the

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stock market absolutely. Reason number one, you've got a market

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where the number one source of new flows are ETFs

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passive investments. In Vidia's the biggest company in the S

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and P five hundred, so it gets the biggest amount

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of the flows. Right, So if in Vidia keeps going up,

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that is a really big pull on the rest of

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the market to go up. Right. If in video goes down,

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that is a really big anchor pulling the rest of

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the market down. The other thing is is what is

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everybody the most excited about? AI? In Video is the

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center point of that, right, So if AI, if in

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Vidia trips, if in Nvidia trips by ten percent, the

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AI sector as a whole will probably get hit for

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thirty would be you know, that's that's my guess. I mean,

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obviously I can't guarantee that, but yeah, I think that

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that's one hundred percent correct. But again, stet back for

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a second. That is precisely why you shouldn't be loading

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up on companies like in Vidia, because that's idiotic. That

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is irrational. We are talking about a big business based

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on math numbers and cash flows, right, saying that all

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of these other companies are going to lose value because

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one company that's trading an evaluation that would make an

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aircraft career full of drunken sailor's blush, right, Like, that's

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that's ridiculous, okay, but it's true. So what does that

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tell me? Inherily, it tells me that this is a

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market that is very detached from logic. And what it

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also tells me is that, you know, it's like the

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little kid, Like we've used this analogy, a little kid

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digging through the hile a horseman to or right, there's

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a pony in here somewhere, And that's that's the way

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we're looking at it is saying, Look, I agree with you,

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and that's why I am so excited because when markets

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become this value and fundamentally blinded, you know, for a fact,

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there are dollars selling for ten cents, and that's what

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we're excited about.

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

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knew in Utah and they bought some lands down in

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Nevada and bit by bit by bit they were selling

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off the land, and bit by bit the casinos were

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

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they just did this thing where they all they wanted

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

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they sold, and they negotiated and they traded and they

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brought some they bought some bridge rights to bridge this

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river down near Mesquite, Nevada. And lo and behold the casinos.

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

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

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go look at the river. They did not look at

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the historical flow of the river. They did not look

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at the overflow of the river. They did not look

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at the historical floods. They did not realize that in

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terms of geological stability, there are two places you can

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

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knew this because they'd farmed the land forever. Everything else

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here is sand and dirt and mud. There are exactly

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two places are tractors didn't sink, exactly two places along

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this entire area of river that you could safely build

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a highway without doing all sorts of infrastructure build there's

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

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We need the second one, one at the front of town,

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one at the end of town. This was about forty

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years ago when the casinos started to have really good

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

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started to make the plans to go to the city

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

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So the grandkids of those guys got a phone call

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about those bridge rights. They saw this when no one

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else saw it, and the casinos thought they were going

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

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with some farmers grandkids who had been to college. One

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

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So they were perfectly happy to lease the bridge rights

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to the casinos.

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Speaker 3: And how much they're releasing them for, oh well enough

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for whatever they wanted.

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

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and I questioned the wisdom of this, was we get

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

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super fun people to go to casinos with because they

355
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don't pay. Yeah, really really interesting. All right, we need

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to talk about this company micro strategy. You talked about this,

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and this has to do with cyber and cyber coins

358
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and bitcoin, and we'll talk about this with Zach Abraham.

359
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Over the holidays, had a great conversation with a guy

360
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who has moved his job. His acts of I guess

361
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you could say service, and it is service from the

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United States down to Mexico. Now, I had this conversation

363
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with some friends of mine and this is the stem

364
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cell organization renewed dot Healthcare. Over the weekend, it was

365
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having another conversation with a friend of mine who broke

366
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the world record for squat many times over and man,

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is he paid a price. He and I continue to

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have these talks. He continues to want to get down

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to Mexico. And he took me aside and goes, look, Todd,

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I did some research. They have offices in Scottsdale. I go, right,

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He goes, okay, So, but you keep saying it's in

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Mexico based company. No, No, they do the treatments in Mexico.

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They have to have a corporate entity down there. And

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again he said to me, Okay, this is where I

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get confused, because my surgeons and doctors are up here

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telling me they use stem cells. Okay, let me try

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to put this debate to bed forever. In Mexico at

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renew dot Healthcare, the stem cells are alive. They're cultured

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in a lab after they take the core stem cells

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from placebas and umbilical cords. They pay for the birthing

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process of those mothers. They observe the health of the

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mothers and the babies during birth and for a long

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while after birth before they will ever ever use the

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stem cells. They still pay for the births. They take

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the very best of the stem cells, they get them

386
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to Mexico very quickly, and then they culture them so

387
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there's more of them living. Need to go packed with

388
00:21:01,519 --> 00:21:05,000
building capabilities, but nothing assigned to build, meaning they can

389
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build anything in the human body, muscle, tendon, they can

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build cartilage, They fight inflammation, they destroy inflammation. That's the

391
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stem cells in Mexico. The stem cells in the United

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States almost always come from your own body. They usually

393
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come from bone marrow. So however old you are, that's

394
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how old your stem cells are, and they go through

395
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a process of licing before they're put in your body.

396
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Basically they're spun around that is centrifuge, which makes them

397
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even less effective. They do fight inflammation. But that's really

398
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just about it. So the difference is profound. If you

399
00:21:43,400 --> 00:21:46,359
want the real healing process of stem cells that I've done,

400
00:21:46,400 --> 00:21:49,079
my friends have done, and countless now viewers and their

401
00:21:49,119 --> 00:21:51,920
listeners to this program have done, go to renew dot Healthcare.

402
00:21:51,920 --> 00:21:55,160
It's our e in ue dot Healthcare. Telling them you're

403
00:21:55,200 --> 00:21:57,480
part of the Todd Hermanshaw family, and they will tell

404
00:21:57,480 --> 00:21:59,160
you if they can help you or not, and they'll

405
00:21:59,160 --> 00:22:01,519
even tell you the percent chance of success. That's renew

406
00:22:02,119 --> 00:22:02,839
dot Healthcare.

407
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Speaker 3: Zach K.

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Speaker 1: Brahm's with US chief investment officer Bulwark Capital Management. Zach,

409
00:22:09,000 --> 00:22:13,680
you're talking about this company called micro Strategy is going

410
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around and buying up all the cyber currencies. At least

411
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that seems to be the strategy. So this seems significant.

412
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Speaker 3: Yeah, I mean, look again, you look back through financial history.

413
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This is yet another classic sign that you expect to

414
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see in bubble environments, which is, and I want to

415
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be really clear, guys, but I'm talking about a bubble.

416
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I'm talking about a kind of a unique bubble because

417
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I think in some ways the bubble is so much

418
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more widespread in terms of who's participating in it. Yet

419
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at the same time, the bubble is very selective in

420
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terms of what types of stocks and what types of

421
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things that's involved in. So when I'm talking about this,

422
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I'm not foretelling a market crash. I think things are

423
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going to crash, but I also think that the saving

424
00:23:05,960 --> 00:23:07,880
grace in this market is that there's so much stuff

425
00:23:07,920 --> 00:23:10,720
that's undervalued. So while a lot of this ridiculous stuff

426
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is getting smoked, I would expect this other stuff to

427
00:23:13,319 --> 00:23:16,799
return back to some somewhere close to intrinsic value. And

428
00:23:16,839 --> 00:23:19,920
so I actually think this process could take This process

429
00:23:19,960 --> 00:23:23,839
could occur without you know, seeing a forty percent market drop.

430
00:23:23,839 --> 00:23:27,240
I don't think it's necessarily like, you know, an apocalyptic thing.

431
00:23:27,640 --> 00:23:29,759
I just think that if you're writing the things that

432
00:23:29,799 --> 00:23:32,519
have worked, including the general market, over the next five

433
00:23:32,519 --> 00:23:36,160
to ten years, I think you're going to have significantly

434
00:23:36,200 --> 00:23:38,000
different results than you had over the last ten to

435
00:23:38,079 --> 00:23:40,720
fifteen years. And I think you're gonna have a very

436
00:23:40,720 --> 00:23:44,279
hard time keeping up with inflation rates. But micro strategy

437
00:23:44,319 --> 00:23:47,119
would be another classic example that you'd expect to see.

438
00:23:47,400 --> 00:23:48,839
You know, if you had a checklist of things that

439
00:23:48,880 --> 00:23:50,839
you expected to see in a bubble of some kind,

440
00:23:51,319 --> 00:23:53,920
this would certainly be one of them. What micro Strategy

441
00:23:53,960 --> 00:23:56,839
is doing is it's a relatively small, sort of niche

442
00:23:56,960 --> 00:23:59,640
tech player. I'm not one hundred percent sure and exactly

443
00:23:59,640 --> 00:24:02,200
what they you, but it's it's a I believe that

444
00:24:02,240 --> 00:24:05,799
they kind of provide some equipment to like the cloud

445
00:24:05,839 --> 00:24:08,640
based businesses or something like that. Don't quote me. The

446
00:24:08,799 --> 00:24:11,440
underlying business is not impressive at all. I want to

447
00:24:11,440 --> 00:24:13,279
say it does revenue in the neighborhood of like seven

448
00:24:13,319 --> 00:24:16,240
eight hundred million a year, growing at a very modest rate.

449
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Kind of a fine little business, but kind of a snoozer, right. Well,

450
00:24:21,839 --> 00:24:25,279
what the CEO did, and interestingly enough, the CEO was

451
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the CEO of another company back at the tech bubble

452
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in the late nineties that you know, crashed by ninety

453
00:24:30,839 --> 00:24:34,240
some percent and got obliterated too. So it appears he's

454
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going back to the well. But what he's doing is

455
00:24:37,079 --> 00:24:43,200
he is issuing tens of billions of dollars in convertible debt. Okay,

456
00:24:43,240 --> 00:24:46,519
so debt it could be converted to equity, and the

457
00:24:46,599 --> 00:24:51,680
debt pays zero percent interest, okay, And the reason you're

458
00:24:51,720 --> 00:24:53,920
buying it is because of a convert So it's it's

459
00:24:54,000 --> 00:24:56,559
it's what you're hoping is that you get an arbitrage

460
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where you're able to convert to an abnormally large size

461
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of equity. So if you buy a convertible debt note,

462
00:25:06,160 --> 00:25:08,480
technically what you're hoping is that the company has a

463
00:25:08,480 --> 00:25:11,720
big drop in its equity prices, right, which allows you

464
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to convert and get a big stake of the company.

465
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Speaker 1: Here's your bet. You're buying a convertible note. You're loaning

466
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the company money, but you have the option to say, actually,

467
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we don't want the interest you were going to give us.

468
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Speaker 3: Well, remember they're not paying interest on these ones. No option.

469
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Speaker 1: Yeah, I got that part. But traditionally, convertible debt is

470
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someone loans you the money and you're paying interest, but

471
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they have the option to come along and say, yeah,

472
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we don't want the interest anymore. We want equity, so

473
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we want to turn that debt into equity. But that

474
00:25:39,880 --> 00:25:43,799
traditionally comes with an interest payment, and the investor wins

475
00:25:43,839 --> 00:25:46,519
either way, right, small or big. If the company is

476
00:25:46,519 --> 00:25:49,440
doing super super well, it converts, they get equity that

477
00:25:49,559 --> 00:25:52,119
is now pays them back more money than the interest

478
00:25:52,160 --> 00:25:55,279
would have. But he's doing this with zero interest rates,

479
00:25:55,480 --> 00:25:58,160
zero percent interest rates and issuing tens of billions of

480
00:25:58,240 --> 00:25:58,720
dollars of this.

481
00:25:59,519 --> 00:26:04,440
Speaker 3: Yeah, yeah, billions, And so he's yeah, levering up the

482
00:26:04,480 --> 00:26:07,960
balance sheet in an unbelievable way, turning around taking that

483
00:26:08,039 --> 00:26:12,240
money buying a non cash flowing asset. Okay, so let's

484
00:26:12,279 --> 00:26:15,160
stop right there. Okay. I don't care what you think

485
00:26:15,200 --> 00:26:19,960
about bitcoin or any other cryptocurrency. This is an old

486
00:26:20,000 --> 00:26:23,599
movie that's been around, that's been played many times. When

487
00:26:23,640 --> 00:26:26,160
you are levering up a balance sheet to an ungodly

488
00:26:26,200 --> 00:26:29,680
amount to buy a non cash flowing asset, it is

489
00:26:29,720 --> 00:26:32,160
only a matter of time until you get margin cold.

490
00:26:32,720 --> 00:26:36,680
And the reason for that is at some point, especially

491
00:26:36,720 --> 00:26:40,720
if you are buying something that is as volatile as Bitcoin. Now,

492
00:26:40,759 --> 00:26:44,680
to Sailor's credit, he rolled the last bitcoin drop down

493
00:26:44,720 --> 00:26:47,880
from sixty some thousand down to fifteen or sixteen thousand,

494
00:26:48,240 --> 00:26:52,200
and he wasn't forced to liquidate yet. But that point,

495
00:26:52,279 --> 00:26:55,319
we'll always get there, and at some point right there

496
00:26:55,319 --> 00:27:00,640
will be a mismatch, meaning he will as an exity holder,

497
00:27:01,000 --> 00:27:05,559
you will have two choices. At some point, Bitcoin will

498
00:27:05,640 --> 00:27:10,359
drop well below their average purchasing price right of of

499
00:27:10,359 --> 00:27:13,559
of the of the deal, because remember they're purchasing the

500
00:27:13,680 --> 00:27:20,119
largest amount dollar amounts as bitcoin goes higher, right, So

501
00:27:20,119 --> 00:27:24,359
so their dollar costs d averaging, meaning their average cost

502
00:27:24,400 --> 00:27:29,039
for bitcoin is continually rising. Right, Well, so are the liabilities.

503
00:27:29,279 --> 00:27:33,079
So at a certain point bitcoin drops to a certain level. Okay,

504
00:27:34,119 --> 00:27:36,599
they've got to do one of two things. They either

505
00:27:36,640 --> 00:27:39,599
have to pay that debt back or it's got to

506
00:27:39,640 --> 00:27:42,680
convert into equity. Well, as soon as that debt converts

507
00:27:42,720 --> 00:27:46,519
into equity, it's going to trigger all the other equity converts, right,

508
00:27:46,519 --> 00:27:48,799
because they're sitting there going, well, we got to get you,

509
00:27:48,839 --> 00:27:52,119
We got to get in here, right, and and and

510
00:27:52,119 --> 00:27:53,000
and swap this thing.

511
00:27:53,119 --> 00:27:53,279
Speaker 2: You know.

512
00:27:54,000 --> 00:27:57,759
Speaker 3: Anyway, what you eventually get to is you've got two

513
00:27:57,880 --> 00:28:00,920
You've got two options as a share holder of the stock.

514
00:28:01,640 --> 00:28:05,400
Eventually they're going to be either massive forced sellers of

515
00:28:05,440 --> 00:28:09,119
bitcoin or you will get diluted down to nothing. Now,

516
00:28:09,160 --> 00:28:14,559
the irony is this company's stock trades in lockstep with bitcoin,

517
00:28:15,119 --> 00:28:19,839
except it moves up on average about four times four

518
00:28:19,920 --> 00:28:23,079
percent for every one percent the bitcoin moves. Now, think

519
00:28:23,119 --> 00:28:27,720
about that. That's insanity. You're buying the stock because of

520
00:28:27,799 --> 00:28:32,960
the bitcoin. Okay, but in this case, the bitcoin has

521
00:28:33,000 --> 00:28:36,440
a massive liability attached to it, which is this convertible

522
00:28:36,519 --> 00:28:40,640
debt that is going to convert because the company doesn't

523
00:28:40,680 --> 00:28:43,400
have the cash to pay the debt back, right, it

524
00:28:43,440 --> 00:28:47,440
doesn't pay an interest rate, so it's gonna convert equity

525
00:28:47,720 --> 00:28:51,559
right at some point. Okay, So you're saying that owning

526
00:28:51,759 --> 00:28:56,000
an ever decreasing percentage of a company that owns bitcoin

527
00:28:56,519 --> 00:28:58,839
is better off than owning bitcoin itself.

528
00:28:59,599 --> 00:29:02,599
Speaker 1: This is insane. And you mentioned so that that's the CEO.

529
00:29:02,640 --> 00:29:05,160
He's an Air Force veteran, so thanks for serving the country.

530
00:29:05,319 --> 00:29:11,680
But that that's that's that defies explanation. I mean, this is,

531
00:29:11,759 --> 00:29:16,000
let's put this in common human terms. There's a company

532
00:29:16,000 --> 00:29:20,119
that buys up with zero interest rate loans all sorts

533
00:29:20,160 --> 00:29:23,480
of tickets to concerts. So they buy them, and it's

534
00:29:23,519 --> 00:29:25,279
this convertible notes and you can buy and you can

535
00:29:25,319 --> 00:29:28,599
go to these concerts. And so time and time and

536
00:29:28,640 --> 00:29:31,000
time again they're buying up these concert seats and you

537
00:29:31,079 --> 00:29:34,519
have this and eventually gonna go these concerts, or you

538
00:29:34,559 --> 00:29:37,519
could buy a ticket and go to the concert and

539
00:29:37,559 --> 00:29:41,480
pay less, far less. And this guy's that's a four

540
00:29:41,519 --> 00:29:46,759
hundred percent premium. He's getting two actually just owning bitcoin.

541
00:29:47,680 --> 00:29:51,640
Speaker 3: Yeah, yeah, and it's just it's and that's one of

542
00:29:51,720 --> 00:29:55,119
the problems you have about so much record retail involvement

543
00:29:55,720 --> 00:29:59,599
is that the guy says things. I read this explanation

544
00:29:59,680 --> 00:30:02,119
from a retail investor on Twitter this morning about it,

545
00:30:02,559 --> 00:30:05,279
saying like he finally gets what Michael Saylor is talking

546
00:30:05,359 --> 00:30:08,319
about and why it's worth so much more. And I'm

547
00:30:08,359 --> 00:30:15,799
sitting there going, this is nonsense. You're getting swindled. And look,

548
00:30:15,920 --> 00:30:19,119
it is entirely possible. And I've listened to Michael Saylor

549
00:30:19,160 --> 00:30:23,359
talk It's entirely possible that he believes it. There's a

550
00:30:23,359 --> 00:30:25,440
part of me that thinks he does believe it. I

551
00:30:25,480 --> 00:30:29,319
don't think he's a swindler per se. I just think

552
00:30:29,359 --> 00:30:33,359
he's incredibly foolish. And I just again I look at him,

553
00:30:33,359 --> 00:30:36,200
and I'm like, I look at these people, and I go, guys,

554
00:30:36,279 --> 00:30:39,000
look at the structure of this deal. If you want

555
00:30:39,000 --> 00:30:42,759
to own bitcoin, like, you're guaranteed if you buy the

556
00:30:42,839 --> 00:30:47,000
stock here at this price, you're virtually guaranteed that your

557
00:30:47,119 --> 00:30:51,000
ownership percentage is going to get diluted. And the only

558
00:30:51,160 --> 00:30:54,400
asset of side that matters on the balance sheet is bitcoin.

559
00:30:54,960 --> 00:30:58,160
So you've just figured out a way to negate the

560
00:30:58,200 --> 00:31:01,319
one biggest upside of bitcoin, which is that you can't

561
00:31:01,359 --> 00:31:05,279
make any more of it, well, right, because as you

562
00:31:05,319 --> 00:31:07,359
print more of anything, right, the value of that thing

563
00:31:07,400 --> 00:31:11,680
becomes less. Okay, well, how is that any different than

564
00:31:11,680 --> 00:31:14,039
buying a company where you're underlying share in that company

565
00:31:14,079 --> 00:31:17,799
is constantly being diluted. So like, it's crazy that this

566
00:31:17,920 --> 00:31:20,119
is trading at a premium to bitcoin because the whole

567
00:31:20,160 --> 00:31:22,640
idea behind bitcoin is you can't make any more of it, right.

568
00:31:22,640 --> 00:31:25,640
Speaker 1: Yeah, I just saw this tweet, he responded to with

569
00:31:25,759 --> 00:31:29,839
clown faces and laughing faces. Michael Saylor, CEO of this

570
00:31:29,880 --> 00:31:36,160
micro Strategy is the new Warren Buffett. Yeah, this even

571
00:31:36,200 --> 00:31:39,839
I'm listening to this going, this has to collapse. I mean,

572
00:31:40,680 --> 00:31:44,640
you could have bought ten percent of micro Strategy and

573
00:31:44,680 --> 00:31:47,839
now it's nine percent and eight percent and seven percent

574
00:31:47,920 --> 00:31:51,200
and six percent. Every single day you are guaranteed to

575
00:31:51,319 --> 00:31:55,319
make less money on your investments every single day more

576
00:31:55,359 --> 00:31:58,400
people buy. You could have taken that ten percent you

577
00:31:58,440 --> 00:32:02,119
bought and bought bitcoin and not have this solution ever.

578
00:32:02,599 --> 00:32:04,480
Well yeah, but this bitcoin could go down.

579
00:32:04,519 --> 00:32:08,279
Speaker 3: But it's crazy, man, when you tell this to people,

580
00:32:08,920 --> 00:32:11,599
it's a very unique and you know, I talked to

581
00:32:11,640 --> 00:32:13,119
buddies of mine that have been in the industry for

582
00:32:13,119 --> 00:32:16,400
forty years. It's a very unique attitude in this market

583
00:32:16,400 --> 00:32:18,680
where they look at you and they go, oh, you're

584
00:32:18,720 --> 00:32:20,720
just you're just mad that you weren't it And you're like,

585
00:32:20,720 --> 00:32:23,119
what are you talking about? And they're like, well, you

586
00:32:23,160 --> 00:32:24,440
know who cares? You're not?

587
00:32:24,559 --> 00:32:24,720
Speaker 2: Right?

588
00:32:24,799 --> 00:32:27,640
Speaker 3: The stock went up, so like everybody has this attitude.

589
00:32:27,759 --> 00:32:31,279
If the price goes up, that is reality, right, And

590
00:32:31,559 --> 00:32:34,880
it's really bizarre because you've never had that attitude wholesale

591
00:32:34,880 --> 00:32:35,759
and markets like this.

592
00:32:36,079 --> 00:32:38,960
Speaker 1: Oh right, But there's been one time when I was

593
00:32:39,759 --> 00:32:43,119
raising money out a Silicon Valley. There was a time

594
00:32:43,359 --> 00:32:46,039
and I saw it. I saw people whose companies had

595
00:32:46,039 --> 00:32:48,000
never turned a profit. They were nowhere near a profit.

596
00:32:48,039 --> 00:32:51,039
They were twenty years away from a profit buying helicopters.

597
00:32:51,440 --> 00:32:55,240
I had dinner with them, and the conversation began. Sitting

598
00:32:55,240 --> 00:32:58,240
down with the CEO of Salon dot Com, sitting down

599
00:32:58,279 --> 00:33:00,480
to eat dinner. Hey, Michael, how are you about it? Helicopter?

600
00:33:01,599 --> 00:33:06,039
Speaker 3: Yep, yeah, yep, wow. But I mean, but but I remember,

601
00:33:06,759 --> 00:33:09,799
what's so unique about this is that mania lasted about

602
00:33:09,799 --> 00:33:12,640
two and a half three years, right, this has been

603
00:33:12,680 --> 00:33:15,519
going on. Argue arguably for five to seven years, right,

604
00:33:15,519 --> 00:33:17,319
I mean, it's getting crazier, right.

605
00:33:17,200 --> 00:33:20,000
Speaker 1: But it is. And I'm not saying it's the same thing,

606
00:33:20,519 --> 00:33:22,920
but I'm saying at that time, I am I'm looking

607
00:33:22,960 --> 00:33:24,880
in the eye. And there were people who who would

608
00:33:24,920 --> 00:33:26,119
look you in the eyes say you don't get the

609
00:33:26,119 --> 00:33:29,839
new economy man, like, yeah, I remember things like that.

610
00:33:29,839 --> 00:33:31,200
That's that doesn't happen anymore.

611
00:33:31,759 --> 00:33:34,319
Speaker 3: Remember, Remember, it's not about cash flow and earnings. It's

612
00:33:34,319 --> 00:33:35,240
about eyeballs.

613
00:33:35,799 --> 00:33:37,839
Speaker 1: Yes, I got a phone call from a woman I

614
00:33:37,839 --> 00:33:42,440
did business with their and become friends with, and she

615
00:33:42,480 --> 00:33:44,920
lives in San Francisco, and and we did a lot

616
00:33:44,920 --> 00:33:49,519
of business together. And she called me from San Francisco

617
00:33:49,720 --> 00:33:51,279
and she said, Hey, I'm gonna talk to you for

618
00:33:51,319 --> 00:33:53,440
a second. She was just one of those companies where

619
00:33:53,480 --> 00:33:57,960
CEOs were buying helicopters. And I said, hey, what's going on, Leah. Hey,

620
00:33:57,960 --> 00:34:00,279
you know my husband and I bought this house at

621
00:34:00,279 --> 00:34:03,000
hate Ashbury. Oh yeah, on top of on top of

622
00:34:03,039 --> 00:34:05,160
the hate oh wow, by the zoo.

623
00:34:05,200 --> 00:34:05,359
Speaker 2: Yeah.

624
00:34:05,400 --> 00:34:08,239
Speaker 1: Well we've got a view of both sides. Oh wait,

625
00:34:08,280 --> 00:34:11,480
so you're I mean, you're you're up there. Yeah. So

626
00:34:11,480 --> 00:34:16,360
we bought it with stock I forgot where's your husband?

627
00:34:16,519 --> 00:34:23,559
Zding at? Where are you salon? Yeah? What's going on?

628
00:34:23,559 --> 00:34:30,159
Could you loan of some money? They've fit this margin

629
00:34:30,239 --> 00:34:33,000
call apparently, you know, we've got this this this bubble

630
00:34:33,000 --> 00:34:35,639
agreement on our mortgage, and they're just they think our

631
00:34:35,639 --> 00:34:39,000
stocks sowing got back up, so they're they're kind of

632
00:34:39,000 --> 00:34:41,639
called the loan. So we've we've got a little time

633
00:34:41,679 --> 00:34:43,239
before we have to make the bubble payment. Could you

634
00:34:43,320 --> 00:34:47,719
loan us some money? How much you're looking for?

635
00:34:48,400 --> 00:34:50,280
Speaker 3: Uh? Oh, so they took a hold on, hold on.

636
00:34:50,360 --> 00:34:52,760
They didn't sell their stock to buy the house. They

637
00:34:52,760 --> 00:34:55,639
took a loan out against their stock because they I'm

638
00:34:55,679 --> 00:34:56,840
sure it was going to go up more.

639
00:34:58,480 --> 00:34:59,880
Speaker 1: So how much would you guys? You know what we

640
00:35:00,079 --> 00:35:05,960
looking for? Oh, fifteen to twenty thousand dollars? Uh leah?

641
00:35:06,039 --> 00:35:10,239
How much time does that buy you? Thirty days a month?

642
00:35:13,000 --> 00:35:15,119
You know what. I'd love to be able to help.

643
00:35:17,559 --> 00:35:19,960
Speaker 3: I'm a good man of money after bad there a month?

644
00:35:21,320 --> 00:35:23,000
Speaker 1: Oh no, no, it's okay, I get it. You know

645
00:35:23,039 --> 00:35:24,559
it's a lot of money, and you know, we don't

646
00:35:24,559 --> 00:35:28,079
know what you did that well, and my husband's father

647
00:35:28,199 --> 00:35:32,599
is going to step in and help us. This month. Leah,

648
00:35:32,679 --> 00:35:36,400
this isn't going back up. No, No, it'll be good. No,

649
00:35:36,559 --> 00:35:39,119
and this this is the attitude. Then we need to

650
00:35:39,119 --> 00:35:42,000
talk about this now. Going from the so called private market,

651
00:35:42,079 --> 00:35:44,840
I guess micro strategy is private, I VIDI is private.

652
00:35:45,079 --> 00:35:46,760
But I need to run by you some stuff that's

653
00:35:46,800 --> 00:35:49,360
going on with the World Bank, and then just some

654
00:35:49,719 --> 00:35:52,320
kind of political stuff since there was this election and all,

655
00:35:52,719 --> 00:35:54,039
and I want to talk with you about that some

656
00:35:54,079 --> 00:35:56,400
of the ways we're spending our money as government. Sach

657
00:35:56,440 --> 00:36:01,440
Abrahm's with US chief investment Officer Boward Capital Management. Transparency

658
00:36:01,599 --> 00:36:06,079
is utterly vital. It's utterly vital for today's society because

659
00:36:06,119 --> 00:36:09,599
people no longer like anything that reeks a pretense. This

660
00:36:09,719 --> 00:36:12,400
is why Kamala Harris couldn't make any attraction because there

661
00:36:12,440 --> 00:36:14,760
is no Kamala Harris. There's nothing about her that's genuine

662
00:36:14,760 --> 00:36:19,079
because she's not capable of being genuine. My friend, Zach Abraham,

663
00:36:19,400 --> 00:36:22,760
the chief investment officer Bullwark Capital Management, the guy you

664
00:36:23,000 --> 00:36:25,280
here and or see on our show once a week,

665
00:36:25,360 --> 00:36:27,519
or usually once a week with an occasional vacation like

666
00:36:27,559 --> 00:36:31,960
this past week. He is the guy you see and

667
00:36:32,079 --> 00:36:35,199
hear on this program is not any different when you

668
00:36:35,239 --> 00:36:37,320
hang out with him and you can go have these

669
00:36:37,360 --> 00:36:40,159
social events with him. He does his free live webinars

670
00:36:40,159 --> 00:36:42,079
and he gives speeches. In fact, I'm just going to

671
00:36:42,119 --> 00:36:45,079
ask him. I found out I'm going to Seattle in February,

672
00:36:45,280 --> 00:36:46,880
and I'm going to ask him about doing a private

673
00:36:46,880 --> 00:36:49,519
event there. If you talk to him about your finances

674
00:36:49,599 --> 00:36:54,199
or politics or faith, same guy utterly transparent. He's transparent

675
00:36:54,239 --> 00:36:59,039
about the losses his family suffered economic losses, and guys

676
00:36:59,039 --> 00:37:01,199
in the finance business they don't normally talk about that,

677
00:37:01,239 --> 00:37:03,840
but Zach does. And praise God, it was several decades ago,

678
00:37:04,559 --> 00:37:06,679
but he was being transparent with his bosses. When he

679
00:37:06,679 --> 00:37:08,760
was a young guy in finance, the housing market's going

680
00:37:08,800 --> 00:37:11,599
to crash, and he was laughed at. See he'd always

681
00:37:11,719 --> 00:37:14,440
been a guy motivated by risk management. But when that

682
00:37:14,599 --> 00:37:17,519
happened and his wife and he had to give back

683
00:37:17,559 --> 00:37:21,199
their house all those decades ago, he made himself a

684
00:37:21,239 --> 00:37:24,039
promise when they started their own firm, the number one

685
00:37:24,119 --> 00:37:28,039
thing would be risk management. If two terrorist attacks on

686
00:37:28,079 --> 00:37:31,599
the first day of twenty twenty five don't convince you

687
00:37:31,679 --> 00:37:34,960
that we are headed into an incredibly risky time, that

688
00:37:35,039 --> 00:37:37,599
the deep State and our enemies are going to triple

689
00:37:37,639 --> 00:37:40,960
and quadruple down their efforts to make things hard for America.

690
00:37:41,400 --> 00:37:44,039
I don't know what will. I really suggest that this

691
00:37:44,119 --> 00:37:46,000
is a signal to you to make sure you take

692
00:37:46,079 --> 00:37:49,039
Zach up on his free offer to do review of

693
00:37:49,079 --> 00:37:53,119
your portfolios and your retirement goals. You'll do this for free,

694
00:37:53,320 --> 00:37:55,679
with no obligation. And if you at that end of

695
00:37:55,719 --> 00:37:59,000
that call or video conference or in person meeting, if

696
00:37:59,000 --> 00:38:00,519
you look at that and say, you know what, I

697
00:38:00,559 --> 00:38:03,360
don't need you say that to Zach and he'll say,

698
00:38:03,360 --> 00:38:05,880
God bless you. Go get her done. And if you're

699
00:38:05,880 --> 00:38:08,079
in good stead and you're doing a good job, guess what,

700
00:38:08,280 --> 00:38:10,039
Zach might be the first to stop you and say, hey,

701
00:38:10,039 --> 00:38:13,119
can I stop you? You don't need me. You guys

702
00:38:13,159 --> 00:38:17,000
are set up so well. However, if your portfolio is

703
00:38:17,039 --> 00:38:21,079
not being actively managed, which actually can reduce risk and voluntility,

704
00:38:21,480 --> 00:38:23,679
and you are not set up to reach your retirement goals,

705
00:38:23,719 --> 00:38:27,320
he's going to tell you in loving, straight kind words

706
00:38:27,840 --> 00:38:29,719
and suggest that you let him do what he does.

707
00:38:30,039 --> 00:38:31,840
Here's how to take advantage of this free offer. Go

708
00:38:31,920 --> 00:38:35,679
to Know your Risk radio dot com. That's no your

709
00:38:35,760 --> 00:38:38,400
risk radio dot com or call him at eight six

710
00:38:38,559 --> 00:38:42,159
six seven seven nine Risk. That's eight six six seven

711
00:38:42,280 --> 00:38:45,840
seven nine Risk or know your Risk radio dot com.

712
00:38:46,360 --> 00:38:49,039
Investment advisors services are for the Truck Financial loc and

713
00:38:49,159 --> 00:38:52,480
sec Register Investment Advisor invencements involved risk and are not guaranteed.

714
00:38:52,679 --> 00:38:56,280
Past performance doesn't guarantee future results. Truck twenty four Dash

715
00:38:56,400 --> 00:39:01,960
three seven eight. The World Zach is a little bit

716
00:39:02,000 --> 00:39:07,320
afraid that President Trump might might cut their budget. This

717
00:39:07,400 --> 00:39:11,440
is after the World Bank they lost track of some

718
00:39:11,559 --> 00:39:14,280
money and they're looking for it.

719
00:39:14,280 --> 00:39:16,920
Speaker 3: It was they find it.

720
00:39:16,960 --> 00:39:21,159
Speaker 1: I'm sure ye it was. It was twenty four billion.

721
00:39:24,360 --> 00:39:27,519
Speaker 3: I mean, check the couch Christians, Check the couch Christians.

722
00:39:29,039 --> 00:39:32,119
Speaker 1: What does the World Bank do? I mean I know

723
00:39:32,239 --> 00:39:35,159
someone whose grand dad was on the border the World Bank,

724
00:39:35,199 --> 00:39:37,519
Tim Draper, And I asked him one day what does

725
00:39:37,519 --> 00:39:40,880
the World Bank do? And he said, look, I don't

726
00:39:41,360 --> 00:39:42,079
He couldn't tell me.

727
00:39:45,280 --> 00:39:50,679
Speaker 3: Here's something I was thinking about. Yeah, did I think

728
00:39:50,760 --> 00:39:53,840
that we as a I think that we as a society,

729
00:39:53,880 --> 00:39:55,880
not just here in the United States, but around the world.

730
00:39:57,039 --> 00:39:59,119
I want you to think about something real quick. Now.

731
00:39:59,159 --> 00:40:01,159
I don't I am nowhere near as familiar with the

732
00:40:01,239 --> 00:40:04,760
legalities surrounding you know, the legal structure and the and

733
00:40:04,800 --> 00:40:07,719
the rules and the restrictions surrounding the World Bank. What

734
00:40:07,760 --> 00:40:08,480
they can and can't do.

735
00:40:08,519 --> 00:40:11,239
Speaker 1: They could do anything. They can misplace them for a billion.

736
00:40:10,920 --> 00:40:14,880
Speaker 3: Bucks, right, yeah, And that's my whole thing. My assumption

737
00:40:15,119 --> 00:40:17,760
is is that they're set up quite similarly to the

738
00:40:17,760 --> 00:40:21,119
central banks around the world. Correct. So uh And as

739
00:40:21,119 --> 00:40:22,960
a matter of fact, my understanding is that they're almost

740
00:40:22,960 --> 00:40:26,239
like a surrogate of the world's central banks. But think

741
00:40:26,280 --> 00:40:30,639
about this. Take a look at the Federal Reserve. Okay,

742
00:40:30,679 --> 00:40:33,320
the Federal Reserve has the ability to create currency out

743
00:40:33,320 --> 00:40:36,199
of thin air without any type of approval. Right, the

744
00:40:36,559 --> 00:40:38,559
US government cannot tell them what to do. The Treasury

745
00:40:38,599 --> 00:40:41,480
cannot tell them what to do. Okay. They can iss

746
00:40:41,800 --> 00:40:46,440
issue currency out of thin air with no congressional oversight.

747
00:40:46,360 --> 00:40:47,679
Speaker 1: No audits, nothing.

748
00:40:48,280 --> 00:40:52,440
Speaker 3: Can't look at their books, they cannot be audited. Right.

749
00:40:54,079 --> 00:40:58,039
What do you think are the chances that if we're

750
00:40:58,159 --> 00:41:02,840
able to pull those curtains back we would see ungodly

751
00:41:03,239 --> 00:41:08,719
misappropriations of money that we would see potentially central banks,

752
00:41:08,719 --> 00:41:13,159
including the Fed, illegally funding military actions and places where

753
00:41:13,159 --> 00:41:17,400
they shouldn't be making money. Off illicit trades like drug

754
00:41:17,400 --> 00:41:22,519
and weapons use. Look, I'm not accusing the FED of this,

755
00:41:23,000 --> 00:41:25,880
but what I do know is where there is a

756
00:41:25,960 --> 00:41:30,119
lack of transparency, that is never an accident. Right, It's

757
00:41:30,199 --> 00:41:34,599
never an accident. Where there is opacity, it is always

758
00:41:34,800 --> 00:41:38,440
there for a reason. For instance, you don't ever see

759
00:41:38,519 --> 00:41:42,880
clouded glass right on a door that separates a hallway

760
00:41:42,880 --> 00:41:46,920
from a pool. Right, you're gonna saying, like, where do

761
00:41:46,960 --> 00:41:49,360
you now you walk into a bathroom or a shower door,

762
00:41:49,519 --> 00:41:53,159
you're gonna see some smoky glass, Right, It's for a reason. Right.

763
00:41:53,559 --> 00:41:56,679
So when you see the FED and they have pushed

764
00:41:56,719 --> 00:42:02,079
back vehemently against being audited multiple times, what does that

765
00:42:02,199 --> 00:42:05,639
tell you? Like, and I just sit there deductive reasoning

766
00:42:05,679 --> 00:42:08,440
and go, let's flip it around. What do you think

767
00:42:08,519 --> 00:42:12,159
the odds are that if we audited the FED, we

768
00:42:12,199 --> 00:42:13,840
wouldn't find any of that stuff?

769
00:42:14,400 --> 00:42:14,679
Speaker 1: Zero?

770
00:42:15,400 --> 00:42:17,559
Speaker 3: Samely, I would say, I would agree, Hey.

771
00:42:17,360 --> 00:42:19,559
Speaker 1: When you have a World Bank, And when I asked

772
00:42:19,639 --> 00:42:20,760
him Japrin, what do they do?

773
00:42:20,840 --> 00:42:21,000
Speaker 3: Well?

774
00:42:21,039 --> 00:42:23,559
Speaker 1: They fund projects around the world to help countries that

775
00:42:24,159 --> 00:42:26,760
can't afford loans from the United States. Okay, so the

776
00:42:26,880 --> 00:42:29,599
United States doesn't have to make loans well no, I

777
00:42:29,599 --> 00:42:31,840
mean we still make loans and we give money out. Okay,

778
00:42:31,880 --> 00:42:34,880
so they're a supplement to a foreign aid. No, they

779
00:42:34,880 --> 00:42:38,239
don't have that much money. So what do they do? Well,

780
00:42:38,280 --> 00:42:41,039
so they might back say building projects, say in Africa. Okay,

781
00:42:41,079 --> 00:42:43,159
so like when we have funds to help build things

782
00:42:43,199 --> 00:42:45,280
in Africa, there are a supplement to that. No. No,

783
00:42:45,320 --> 00:42:49,119
they'll buy those things and they'll convert them, convert them

784
00:42:49,159 --> 00:42:54,880
to what. Well, then independent investors will come in who

785
00:42:54,880 --> 00:42:58,360
can set money. Although that goes back to the World Bank.

786
00:42:58,400 --> 00:43:01,440
What do they do with it? Well, they go fund projects.

787
00:43:01,559 --> 00:43:05,320
It's a bank, it's a sticking bank. And we don't

788
00:43:05,320 --> 00:43:07,199
get to audit that. We don't get to audit the FED.

789
00:43:08,119 --> 00:43:12,159
I'm telling you be suspicious of this as a as

790
00:43:12,280 --> 00:43:15,519
as a married couple. If you walk into the front

791
00:43:15,559 --> 00:43:18,400
room and your spouse is typing away on the phone

792
00:43:18,400 --> 00:43:20,000
and they see you coming and they turn it off

793
00:43:20,039 --> 00:43:23,960
and set it face down and then sit back from it.

794
00:43:25,239 --> 00:43:27,159
Speaker 3: I probably weren't buying you at Christmas present.

795
00:43:27,719 --> 00:43:30,920
Speaker 1: Maybe they were, but probably not. So when someone does that,

796
00:43:31,000 --> 00:43:33,079
you know they don't want you to see what they're doing.

797
00:43:33,119 --> 00:43:34,639
We know the FED doesn't want us to see what

798
00:43:34,639 --> 00:43:37,679
they're doing. So I hope President Trump comes along to

799
00:43:37,719 --> 00:43:39,639
the World Bank and says, yeah, I'll give you more

800
00:43:39,679 --> 00:43:41,199
money as as soon as you tell me where's twenty

801
00:43:41,199 --> 00:43:41,760
four billion went?

802
00:43:43,760 --> 00:43:47,119
Speaker 3: Well, and look, and I think that's the same. I

803
00:43:47,159 --> 00:43:50,119
think that's the same thing, the same. Well, what I'm

804
00:43:50,159 --> 00:43:52,519
hoping the same approach to users with the FED is

805
00:43:52,519 --> 00:43:55,599
what I'm And what I'm hoping is that his threat

806
00:43:55,920 --> 00:44:00,920
of inserting himself into interest rate or monetary power decisions

807
00:44:01,559 --> 00:44:03,639
is just leveraged for him to get the FED to

808
00:44:03,719 --> 00:44:04,480
agree to an audit.

809
00:44:04,679 --> 00:44:07,440
Speaker 1: Oh, I would love that so much.

810
00:44:07,760 --> 00:44:10,599
Speaker 3: Yes, because if that's why he's threatening being involved in

811
00:44:10,599 --> 00:44:13,679
the monetary policy decisions, then then I'm good with that.

812
00:44:15,000 --> 00:44:18,920
If he earnestly wants to be involved in monetary policy decisions,

813
00:44:19,119 --> 00:44:22,519
I think that is a train wreck. Uh, and that

814
00:44:22,639 --> 00:44:25,800
is something that will cost us deeerly in the long run.

815
00:44:26,079 --> 00:44:30,079
Speaker 1: So I totally agree with you and that when I

816
00:44:30,159 --> 00:44:32,719
brought up auditing the FED. And did I tell that

817
00:44:32,719 --> 00:44:34,719
story when I brought up auditing the FED Washington, d C.

818
00:44:34,840 --> 00:44:37,480
When I was in the Republican National Committee leadership team meeting.

819
00:44:38,360 --> 00:44:40,440
Speaker 3: No, but I'm sure it was like the equivalent. I'm

820
00:44:40,440 --> 00:44:43,000
sure the reaction was like having a you know, a

821
00:44:43,039 --> 00:44:44,880
square gun full of holy water in a room full

822
00:44:44,880 --> 00:44:45,440
of vampires.

823
00:44:47,119 --> 00:44:49,639
Speaker 1: I'll tell you in a second the actual reaction. It

824
00:44:49,719 --> 00:44:51,599
was so so phenomenal that we need to go through

825
00:44:51,840 --> 00:44:55,360
some spending and just you know, I like what about isms,

826
00:44:55,440 --> 00:44:57,119
So I thought we'd do some what about isms in

827
00:44:57,199 --> 00:45:00,559
terms of what we spent in in this this past year,

828
00:45:01,079 --> 00:45:03,920
and just work our way down to some people who

829
00:45:04,000 --> 00:45:05,679
might need the money more than the folks were giving

830
00:45:05,679 --> 00:45:08,000
it too. We're talking to Sack Abraham, chief invest officer

831
00:45:08,079 --> 00:45:12,639
Bowork Capital Management. My friend Tim Kokshak has worked extremely

832
00:45:12,719 --> 00:45:15,559
hard to build the Bone Frog Coffee Company into what

833
00:45:15,599 --> 00:45:19,960
it's become. If you've made any form of New Year's resolution,

834
00:45:20,039 --> 00:45:22,360
and a lot of people do that, then can I

835
00:45:22,480 --> 00:45:25,639
just suggest this to you. Have you struggled with depression?

836
00:45:26,119 --> 00:45:28,440
Have you struggled with an inability to get out of bed? Okay,

837
00:45:28,519 --> 00:45:30,360
let me just offer this to you. You might be

838
00:45:30,440 --> 00:45:33,639
using a ton of things to fight that. God forbid,

839
00:45:33,719 --> 00:45:35,599
you're using a bunch of parma. Please don't do that.

840
00:45:36,559 --> 00:45:40,840
Coffee is an incredible antidepressiont For me, my experience with

841
00:45:40,880 --> 00:45:43,000
it has been. It is more effective than anything else.

842
00:45:43,320 --> 00:45:47,320
It's also an incredible antioxidant. It helps keep you regular

843
00:45:47,880 --> 00:45:52,159
and it's really very very natural. There are people in

844
00:45:52,199 --> 00:45:55,039
developing countries who do this day tow the leaves and

845
00:45:55,079 --> 00:45:59,400
the beans, et cetera. We are designed to appreciate caffeine,

846
00:45:59,599 --> 00:46:02,760
so why not have it taste good? Why not get

847
00:46:02,760 --> 00:46:06,159
it from a company that shares your values. Every bag

848
00:46:06,280 --> 00:46:08,519
of the Bone Frog Coffee or K Cup says on

849
00:46:08,559 --> 00:46:12,400
it God Country Team. Everything has the bone Frog logo,

850
00:46:12,639 --> 00:46:15,519
which is the insignia of the fallen Navy Seal. Every

851
00:46:15,559 --> 00:46:17,320
time you take a sip of this, if you paid

852
00:46:17,320 --> 00:46:21,039
for the coffee, you're contributing ten percent of proceeds to

853
00:46:21,079 --> 00:46:24,159
support the families of fallen Navy Seals to the Navy

854
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Seal Foundation. And you are working with a guy, Tim Krukshank,

855
00:46:28,920 --> 00:46:32,159
who is my personal friend, a friend of the show,

856
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one of the first money into the show, and a

857
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guy if you ever get the opportunity to meet, you're

858
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going to find out he's the least Seal like seal

859
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you're ever going to meet, even though he did three

860
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deployments on our behalf quiet, unassuming, but when he needs

861
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to be incredibly powerful. Go to Bonefrogcoffee dot com slash

862
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todd You'll get ten percent off all the products at

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864
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percent off your first purchase, fifteen percent off subscription coffee.

865
00:46:59,039 --> 00:47:03,039
It's bone Frog Coffee dot Com slash todd. So Zach,

866
00:47:03,119 --> 00:47:05,480
let's run through some numbers for the year, just a

867
00:47:05,599 --> 00:47:08,280
year in review. So far this year, the United States

868
00:47:08,360 --> 00:47:12,159
has given twenty four billion four hundred million to Ukraine,

869
00:47:12,719 --> 00:47:16,840
eleven billion, three hundred million to Israel, one million, nine

870
00:47:17,000 --> 00:47:19,800
one billion, nine hundred and fifty million to Ethiopia, one

871
00:47:19,840 --> 00:47:23,400
point six billion to Jordan, one point four billion to Egypt,

872
00:47:23,440 --> 00:47:26,360
one put one billion to Afghanistan, one point one billion

873
00:47:26,400 --> 00:47:29,280
to Somalia, one billion to Yma, nine hundred and eighty

874
00:47:29,280 --> 00:47:33,639
seven million to Congo, eight hundred ninety six million to Syria,

875
00:47:34,000 --> 00:47:36,639
nine thousand per illegal immigrant who's entered the country, and

876
00:47:36,679 --> 00:47:43,039
Americans who've lost everything through Hurricane Helene are filling out paperwork,

877
00:47:43,280 --> 00:47:45,519
hoping very very much to be able to get seven

878
00:47:45,599 --> 00:47:49,280
hundred and fifty dollars. Many many people being denied that

879
00:47:49,360 --> 00:47:52,639
seven hundred and fifty dollars you made a joke earlier

880
00:47:52,719 --> 00:47:56,119
about Elon Musk and Vivic Ramaswami and the doge thing.

881
00:47:57,320 --> 00:48:02,400
I start here, I start with this comparison, and I

882
00:48:02,480 --> 00:48:04,800
go back and I talk about something you and I've addressed.

883
00:48:04,800 --> 00:48:07,360
Done this show before. It is time for President Trump

884
00:48:07,400 --> 00:48:11,519
to come to the table and say this. Every government

885
00:48:11,599 --> 00:48:16,920
department starts at zero. It's basedline budgeting time. Guys, your

886
00:48:16,960 --> 00:48:19,880
spreadsheets are filled with zeros. Come and make an argument

887
00:48:19,880 --> 00:48:23,079
that you should exist fair enough.

888
00:48:23,199 --> 00:48:29,719
Speaker 3: Yeah, oh, I mean yeah, I mean yeah at one percent.

889
00:48:30,960 --> 00:48:33,199
I mean, I mean I do feel bad for the Congo.

890
00:48:34,039 --> 00:48:36,760
You know, I'm they didn't hit the billion dollar mark.

891
00:48:36,840 --> 00:48:41,920
I would accuse that for racism, probably some ism. Yeah,

892
00:48:42,039 --> 00:48:43,599
I mean, you gotta get I mean, I mean, it's

893
00:48:43,639 --> 00:48:45,199
just the slap of the face when you're not a

894
00:48:45,239 --> 00:48:47,920
part of the billion dollar United States giveaway, you know,

895
00:48:48,039 --> 00:48:49,960
I mean, like that's it. That's like not having a

896
00:48:50,000 --> 00:48:52,119
seat at the table for family Thanksgiving. You know, you

897
00:48:52,159 --> 00:48:53,440
show up, You're like where am I going to sit?

898
00:48:54,719 --> 00:48:56,599
So I mean I think you could eat your car,

899
00:48:57,360 --> 00:48:59,920
yeah yeah, or you sit outside the garage with a cat,

900
00:49:00,159 --> 00:49:03,960
you know, keep him company. Yeah. This, I mean, there's

901
00:49:04,000 --> 00:49:06,320
so much low hanging fruit. People are like, Oh, they're

902
00:49:06,320 --> 00:49:08,880
not going to live up to the expectations, And I'm like, look,

903
00:49:08,920 --> 00:49:10,559
do I think that they're going to trim an amount

904
00:49:10,599 --> 00:49:15,559
of money that significantly impacts our deficit situation right now?

905
00:49:15,800 --> 00:49:15,920
Speaker 2: No?

906
00:49:16,039 --> 00:49:19,559
Speaker 3: I don't. Okay, do I think that they could trim

907
00:49:19,840 --> 00:49:23,239
hundreds of billions of dollars off of the federal deficit

908
00:49:23,800 --> 00:49:30,119
and for us to actually see increased service and increased results.

909
00:49:30,280 --> 00:49:34,440
I absolutely think that that is possible. I don't think

910
00:49:34,440 --> 00:49:38,000
it's not only possible, I think it's fairly easy, meaning

911
00:49:38,599 --> 00:49:43,480
I don't think like there's so many of these situations

912
00:49:43,559 --> 00:49:49,599
where the money spent on the regulator is the problem. Right, Like,

913
00:49:49,920 --> 00:49:53,239
So if all you do is get the regular out

914
00:49:53,239 --> 00:49:55,920
of regulator, not all not all the time, and not

915
00:49:56,000 --> 00:49:59,840
with all regulations, but sometimes a lot of the the

916
00:50:00,559 --> 00:50:02,239
you get a two for one deal, right. You get

917
00:50:02,239 --> 00:50:04,679
the money that you save federally, then you get the

918
00:50:04,800 --> 00:50:08,519
increased tax revenue off of increased production and increased profitability

919
00:50:08,519 --> 00:50:11,800
in the underlying sector. Yep, So it's it's kind of

920
00:50:11,840 --> 00:50:13,800
a it's a two for one. So do I think

921
00:50:13,840 --> 00:50:17,280
that they should do that? Yes, But here's the reason,

922
00:50:17,679 --> 00:50:20,559
you know, to be fair, to our politicians on the

923
00:50:20,599 --> 00:50:24,039
Hill and all those and all those bureaucrats in the

924
00:50:24,119 --> 00:50:27,039
UNA to be fair to them. The reason that they're

925
00:50:27,079 --> 00:50:30,159
not giving these people more than seven hundred and fifty bucks.

926
00:50:30,920 --> 00:50:33,159
I mean, I don't think you're being really fair about it, Todd.

927
00:50:33,760 --> 00:50:36,519
When they give those people the money needed to rebuild

928
00:50:36,559 --> 00:50:41,159
their houses. Their nieces and nephews aren't getting special board

929
00:50:41,159 --> 00:50:43,280
positions that are paying half a million dollars a year

930
00:50:43,280 --> 00:50:46,760
by some foreign entity. I didn't even I mean, yeah,

931
00:50:46,880 --> 00:50:50,960
I mean, so you know, if nephew Nick ain't getting

932
00:50:50,960 --> 00:50:54,559
his sweetheart five hundred grand a year, you know, working

933
00:50:54,639 --> 00:50:59,840
for an Estonian you know, nat Gas provider or something

934
00:50:59,920 --> 00:51:02,760
like that, I mean what you know. I mean, look,

935
00:51:02,960 --> 00:51:05,800
I wish the folks well, hope they can rebuild their house,

936
00:51:06,199 --> 00:51:07,719
but nephew Nick's got to eat man.

937
00:51:07,960 --> 00:51:09,840
Speaker 1: Yeah, you know what. Let me just say this now.

938
00:51:10,199 --> 00:51:12,480
I want to apologize to all the people I hurt

939
00:51:13,000 --> 00:51:15,800
by not understanding this better, and I seek to do

940
00:51:15,880 --> 00:51:17,440
better in the future. I'll reach out to some of

941
00:51:17,480 --> 00:51:20,639
these communities as the marginalized sons and daughters of Speakers

942
00:51:20,639 --> 00:51:21,559
of the House.

943
00:51:21,320 --> 00:51:22,360
Speaker 3: And et cetera.

944
00:51:22,800 --> 00:51:25,239
Speaker 1: And we just learned, you know, I just I fell

945
00:51:25,320 --> 00:51:28,440
short of my expectations of myself, and I'm making a

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small donation, small to my size, to the fund to

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preserve the sons and daughters of the United States Senators.

948
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Speaker 3: That's what I'm here for.

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Speaker 2: Man.

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00:51:35,719 --> 00:51:38,000
Speaker 1: I think I'm happy to be of service to my attention.

951
00:51:38,679 --> 00:51:41,199
Zach Abram has been with US chief investment Officer Bullwark

952
00:51:41,239 --> 00:51:44,840
Capital Management and good friends, great friend of the show.

953
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Always appreciate you. It's Wise counsel day. Thank you, my brother.

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Speaker 3: Hey, thanks for having me. Man, God bless you and

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all the listeners.

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Speaker 1: Bus you. This is the Todd armanshell. Please go, be well,

957
00:51:54,320 --> 00:51:56,760
be strong, be kind, Please make every effort to walk

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in the light of Christ.