Latest / Simply Bitcoin / Preston Pysh & American Hodl | Simply Bitcoin IRL

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Preston Pysh & American Hodl | Simply Bitcoin IRL · Simply Bitcoin

0:11
Yo, welcome to another episode of Simply Bitcoin IRL.
0:15
Today, we have two very special guests.
0:17
We have Preston pish and American hot oil.
0:21
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All right everybody, let's start the show.
1:19
What's up, dude? What's up, buddy?
1:21
How's life chilling, man. Just trying to survive this bear
1:24
Market. You know.
1:26
Is it survival? Is that right?
1:29
You know it's funny meant when we hit we hit 20 like 6K the
1:34
first time like in I don't know when that was like what are the
1:38
before June? So like May of Me too.
1:41
I was like okay, this is like a reasonable reasonable bottom for
1:46
the bear, you know, I can see it 26 makes sense and then we fell
1:50
250. I was like this sucks.
1:53
I'm gonna fucking kill myself. Oh no.
1:55
And then now that we're back around like 20 a time like this
1:58
is reasonable a reasonable place to be and I put but dude, I mean
2:02
like we've been here a minute, right?
2:04
So this is my, this is my seventh year.
2:06
I know you've been here a couple more years than me.
2:08
Only one more year. I go.
2:10
I like a year. Off on you.
2:11
Why is it so painful? Why is it still so painful?
2:16
Yeah, I think just human psychology is that it's always
2:19
painful, right? It's like, you know, the okay I
2:21
said this on Nasser they the day that the most underappreciated
2:25
meme for the psychology of houghtaling.
2:27
Bitcoin is the meme where the guy has the shotgun in his mouth
2:31
and it's like later, Bitcoin goes to 100K and he's got the
2:34
shotgun in his mouth. That's what it is.
2:36
It's like Bitcoin went from, it went to a thousand dollars.
2:39
You were happy and went to 10. Thousand dollars.
2:41
You know like oh I'm scared and went to a hundred thousand
2:43
dollars you okay I'm ready to fucking kill myself like that's
2:46
that's investor psychology and you know I dude there were a lot
2:51
of people I'm not going to name names but there were a lot of
2:52
people I knew who freaked out and bailed, you know this time
2:56
around because like Bitcoin did some shit that they didn't
2:58
expect it to do and it's like okay well Bitcoin is never going
3:02
to do what you think it's going to do Bitcoin.
3:04
Just does whatever it does and you're along for the ride and I
3:08
guess somewhere you forgot that or maybe you Or ready to handle
3:12
the amount that you had or maybe you weren't really that invested
3:17
or maybe you were kind of LARPing about some of the shit
3:19
you were saying, whatever it was like, I don't know, but a lot of
3:22
people got really emotionally disturbed this time around.
3:26
And I know people selling it like 17K and she like that and
3:29
it's like, I guess that's true. Every psycho I just didn't know
3:32
anybody who is such a pussy like, that last time around and
3:34
now, I did, you know. So I got to see it up close and
3:39
I sympathize sighs because the feelings are the same, the
3:43
coward, and the hero, they feel the same way, right?
3:46
But it's what you do with the feeling that matters like you
3:49
feel the same fear every, but when Bitcoin plummets, you can
3:52
go on Twitter and be a stoic as you want.
3:54
Be like, I don't even care, um, better than you because I'm
3:58
stoic, you know, whatever. And it's like, no, you're not,
4:01
you freaked out. You had a little moment to
4:03
yourself or your look. What about money and that was in
4:06
the back of your head, right? Everybody has this.
4:08
It's okay to like, talk about it.
4:10
But it's what you do with it. And then, so, what I do with
4:13
this, is I go, yeah, I'm no, I'm, I'm not going down like
4:17
this, I'm not going down like this, okay?
4:21
I'm gonna fucking hot oil until I told myself zero or fucking
4:25
millions and millions. I'm not gonna just sit here and
4:28
just accept 17. No, I mean, they don't call you
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American holler for no reason, brother.
4:35
But hey, but let me ask you something.
4:38
Personally. I bought into the whole Whole
4:41
we're going 100K. I like where you like what
4:44
happened there and then there's like this theory on bitcoin
4:46
Twitter that I'm not gonna lie. Kind of depresses me a little
4:48
bit or it's like the diminishing returns a big one, which by the
4:51
way makes sense, right? It's a lot harder to go from
4:54
100,000 to 200,000. It was from a dollar to two
4:56
dollars, right? But I still don't think we're
4:59
quite there. I still think we're like we're a
5:01
couple Cycles away from that. So like, why the fuck did we hit
5:05
on your K? Well, yeah, I think here's my
5:08
theory. There is a It's some different
5:11
shit for why people think this might be the case.
5:13
But here's my theory. I think we let Wall Street know
5:15
our Target and I think Wall Street was in this time.
5:18
They weren't in in 2017 and since Wall Street New the
5:21
target, they knew the target was 100K.
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They were like, I will start shorting it at 70, right?
5:26
Because that's what Wall Street does feel like.
5:28
Oh, okay, all the retail idiots. Think it's going to 100.
5:30
So they're going to hold out, we're going to make our fucking
5:32
bread, and they're going to rebuy at the bottom.
5:34
And we didn't realize that basically, we had gone from the
5:38
the tide pool to the ocean and And there be sharks in the ocean
5:42
and the Sharks want to fucking eat you.
5:44
And we were all like just swimming around.
5:46
Like we're the biggest thing in the tide pool.
5:47
Not like you live in the ocean. Now, bitch, the sharks are going
5:51
to eat your ass and that's what happened to basically everybody.
5:54
And also, it's like listen, man, when I was at the when we were
5:58
at the top, like, when it was November of twenty one, I made a
6:02
very conscious decision to myself.
6:03
I was like, okay, you could sell now and have like, you know, a
6:06
lot of money and then you could attempt to rebuy or whatever.
6:09
But what you really got to do is just Make the decision to hot
6:12
oil and just gut it out for a few years and I'm happy with
6:17
that decision. You know it's a tough decision
6:20
to make them. Most people will bail most
6:22
people can't do it. I mean I do I complete I
6:25
completely agree. I mean I make kind of made a
6:28
meme of this on bitcoin Twitter it's like Bitcoin or slavery
6:31
anyways before we keep going Preston, how you doing buddy?
6:35
I'm doing good. I'm so sorry, I'm so sorry cuz
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in my mind this was happening. Being in like, 45 minutes from
6:43
now and I was sending you charts, literally sending you a
6:46
chart on Twitter. And I saw your note like, hey,
6:48
I'll see you real soon and I was like a couple minutes before.
6:51
The top of the I was like, hold on a second.
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Why are my times mixed up? And I did so I apologize.
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I'm a mess though. Good man.
6:58
Happy to have you by the way, I think I think.
7:02
I think you're using your computer microphone.
7:04
Not your, you're very nice. Only have it's a disaster right
7:07
now. You still sound great, though.
7:12
We're happy too. Happy to have, you present.
7:14
Thanks for thanks for joining us.
7:17
Look at pressing with the multiple angles.
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I know, dude sophistication like multiple screens here.
7:24
Let's try another one beautiful. Is it the right Mike?
7:28
Yes better. What is a stir?
7:32
I'm a total disaster right now. You're coming in great.
7:35
Okay so what I was asking hottel press in is I think a lot of
7:40
people were disappointed that we then had 100K Bitcoin.
7:42
I think a lot of people were expecting it.
7:45
What's your take on it? We're you on the Bullish side on
7:47
the barest. I personally, I was, I was
7:49
expecting a hundred K plus. Yeah, I was too like, no doubt
7:53
about it and you know what, when we, when we had the first drop
7:57
that was like a really significant drop that exceeded.
8:00
The Vol that I think any of us were expecting Caitlin came out,
8:04
Kaitlyn long came out and she said, hey the derivatives Market
8:07
paper. Bitcoin is is, you know,
8:09
providing this uncharacteristic input and then when we basically
8:15
had a double head, You know, top she was calling it the whole
8:20
time saying that this was basically ft x and du and paper
8:24
Bitcoin. They basically cut the head off
8:26
of the market, the way that we had characteristically seen
8:30
previous Cycles. So, yeah, I think that's exactly
8:32
what happened. So I have, I have a, I have a
8:36
theory which isn't talked about a lot, right?
8:39
Which was in the run-up, the CCP band, Bitcoin mining, the hash
8:44
rate dropped by like, 60, 70 percent Went all those miners
8:48
had to sell a ton of corn to relocate to different locations,
8:51
the majority of which went to Texas.
8:54
I believe that neutered the last bull market like that that cell
8:59
pressure from the miners because it happened right in like you
9:02
could there's a, I don't know Opti if you could pull it up,
9:05
but if you see the hash rate in the Bitcoin price, it literally
9:09
fell at the same exact time. So I think that you had multiple
9:14
things at all contributed to Basically, not seeing the the
9:21
peak like we had in the previous cycles and that could be
9:24
definitely one of them, the amount of.
9:28
But that one only lasted for I think that lasted for about a
9:32
month, right? Until the network reset itself.
9:34
So you definitely had tons of of difficulty that was in there
9:40
that they were trying to offset. But yeah, it's kind of hard to
9:45
go back and troubleshooting and that way.
9:47
I would focus on is like right now.
9:49
I think that you have had way more consolidation of coins into
9:54
really strong hands because you basically had a year and a half
10:00
of cell pressure or compression of the market that you might not
10:06
have had naturally. So I think that what that's
10:09
doing is it's actually setting up this next Bull, Run to be
10:12
maybe stronger or more aggressive than than what would
10:15
have naturally. Cause the way that it was
10:19
manipulated or played with in the in the previous cycle I'm
10:24
curious of hottel. Would it would again oppress?
10:26
I was gonna say, I was talking to somebody mutual friend of
10:29
ours, Joe Carla. Sorry about this.
10:30
And, you know, he was saying, you know what, if you get into a
10:32
credit crunch people going to sell off their assets, right?
10:36
They're going to sell off the risk assets and people will sell
10:38
Bitcoin and Bitcoin will do you know bad in that scenario.
10:41
And I was saying to myself and to Joe, I was like, who, you
10:44
know who's left? Whoo.
10:47
Is left, that is going to tell their Bitcoin.
10:49
Like, if you went through Luna and ft x and you know, everybody
10:54
on Twitter, I think the peak of fear was everybody saying that
10:57
the gbtc Bitcoin was literally paper Bitcoin, the there was no
11:02
Bitcoin in gbtc that was like Peak Fudd in my mouth.
11:06
If you went through all of that and you're still houghtaling
11:08
your Bitcoin. Yeah.
11:10
You're gonna sell it now to pay your bills.
11:12
There's no way very unlike right.
11:15
There's no way. I think that, You have some of
11:17
the strongest Bitcoin is in some of the strongest hands that it's
11:22
ever been right now. And you have to match that with
11:25
how much more knowledgeable hostlers are today versus six or
11:29
seven years ago as to what it is that they actually own.
11:32
Like the people that I know that have significant amounts of
11:37
Bitcoin, they would literally laugh you out of the room right
11:41
now. If you suggested that they need
11:43
to sell some of that, for whatever reason, like they
11:46
there, Conviction is is 10x what it was five years ago and
11:50
they're the ones squatting on majority of the coins.
11:54
So, I think people in traditional markets, don't
11:58
understand how insanely powerful and important that particular
12:02
point is with respect to, to the amount of Supply that's left and
12:08
how it can't be debased. And then you combine that with
12:11
the backdrop of what's happening in the macro world, the Fiat
12:15
world like It's it's a killer combo when you match those two
12:19
things together. So, yeah, I present, where do
12:23
you come down on Cycle Theory? There's been a lot of talk about
12:26
Cycle Theory, you know, Cycle Theory, dead is the four-year
12:29
cycle still alive, you know, personally, I still, I still
12:34
think the four-year cycle is real and is happening.
12:37
And I think the reason why is because of reflexivity, you
12:40
know, not only do Minds, move markets, but markets, move
12:43
minds. And I think because we believe
12:46
this cycle to Occur. Some large number of Market
12:49
participants will act as if this cycle is real.
12:52
Thus making it real, you know what I mean?
12:55
Do you agree with that? Or I can do it, I completely
12:56
agree with you. And yeah, I think the thing that
13:02
makes it difficult is you're dealing with something that is
13:06
when you, when you look at the traditional Legacy Fiat,
13:10
fractional Reserve disaster like it's playing a role to it's the
13:15
they feed off of each other. Right?
13:17
And it goes down to the mindset as well.
13:19
So you have like the it's so complex the two different
13:22
systems but as Bitcoins market cap continues to grow like its
13:27
influence and its power is going to to start to come to parity
13:32
and match the Legacy system. Now we're not, we're not like
13:34
anywhere, close to that right now and that's why I think the
13:37
past year and a half has been so brutal with respect to price
13:41
action is because that Legacy Fiat system.
13:45
Is is still a Stream, Lee powerful extremely powerful with
13:50
the amount of buying power. That's there and how much
13:52
volatility you're seeing and in the prices.
13:55
But as we continue to move right on the timeline, I think that
13:59
you might actually see the Bitcoin four-year Market cycle
14:02
start to I don't know that it would become more power.
14:06
I think it's just going to continue to play this role like
14:09
we've seen and what model suggesting I think that that
14:13
it's very real. So pressing you were sending me
14:18
you're talking to, you know, we're talking about the the
14:20
Legacy system, right? And you're sending me some some
14:23
charts and Opti if you could be, so kind to pull them up, why
14:27
were these on your mind? This morning?
14:30
What is, what is the significance of these?
14:32
Okay, so these are just bond yield curves.
14:34
This is the US bond yield curve that you're looking at, go ahead
14:37
and so people can see the as it's going up, its selling off,
14:42
okay? And the reason there's so many
14:44
lines as you're dealing With overnight money to 30-year debt,
14:50
in the whole host of durations in between is what that showing
14:53
and the money. That's the highest sell off has
14:56
been the short duration money and thus the ones that are down
15:01
at the bottom or your long-duration money.
15:04
What's ironic for people is like so you're getting a lower rate
15:07
to lend it 30 year versus like three months which is what this
15:11
is the showing here. Now why this is important is
15:15
This is showing that Central Bankers, have not got anything
15:19
under control, because when you look at these yields and you
15:23
look at the, the numbers that are being produced here, you're
15:25
still sub four percent across the whole yield curve.
15:29
Yet, inflation is still raging at.
15:32
I'd have to look at the last print model.
15:35
You might know it off the top of your head, but like, where I got
15:37
to look it up. We're in an excess.
15:39
We're probably around like 6% or something like that.
15:42
So, all of these, all of this debt that you're seeing on, This
15:45
curve is still under performing by 2% of just exceeding
15:52
inflation prints and so they don't have any of it under
15:55
control. And you're seeing that the
15:57
markets here in the u.s. at least is starting to look like,
16:01
like they're expecting a recession and for that inflation
16:04
rate to drop. That's why you're seeing it flat
16:07
line. And you seen it flat line for
16:09
what, like, six months now, here in the US.
16:11
But what I want to, what I want to show you is.
16:13
So this is the US yield curve. Bring up the next chart which is
16:17
probably the UK. I think this is the this is the
16:24
UK. Okay.
16:25
So this is their yield curve. You're not seeing the yield
16:29
curve in the in the UK Flatline yet.
16:33
In fact it's still aggressively selling off chasing after their
16:36
double-digit inflation prints. Okay.
16:39
The the next one I think you just pulled that one up.
16:42
Yeah this is the third one. This is the European bond yield
16:45
curve. So that's the UK one.
16:47
Go back to the, the tab on the far, right?
16:51
Yep. Right there.
16:53
This is the European yield curve and so it's continuing to sell
16:56
off like crazy because nothing is under control over there.
17:01
These markets in the US and over in Europe are so, interconnected
17:07
is with the size of the banks, and the bailouts, and just like,
17:10
it's just, it's basically one giant blob of disaster.
17:15
Whether you're here in the US over in Europe or Japan, like
17:18
it's a mess. And so the reason that I'm
17:20
bringing this up and why I think this is so important and in the
17:23
chart that I sent you after, this had already started because
17:26
I had my times mixed up was the oil chart.
17:30
And why? Why?
17:32
All of this is important. I know I'm talking about a whole
17:34
different host of ideas here but where I'm really going is none
17:38
of this is under control and the reason none of it's under
17:41
control is because now you have OPEC plus coming out and saying,
17:45
oh yeah, we're going to reduce the amount of Supply that we're
17:48
dropping into the market right at a moment where people think
17:51
that Starting to get relief in the oil market and what that's
17:56
going to potentially do in the coming.
17:58
Two quarters is, you might have another run on oil where it's
18:01
starting to take off again and it might go over $100 a barrel
18:04
and if that happens the input for inflation which is driving
18:10
these charts to sell off because all the all this debt is trying
18:14
to perform and capture a yield that's better than inflation.
18:18
That's why it's selling off. Because if you're getting four
18:22
Anton. You're on your Treasury and
18:24
inflation 6%. You're guaranteed to lose 2% of
18:28
your buying power by sitting in that treasury, but if boil
18:32
starts taking off again, it's only double.
18:34
Here's the oil chart, you can see, it's had a lot of relief.
18:38
Most of this was due to the Strategic petroleum Reserve in
18:42
the u.s. being providing a ton of Supply into the market to
18:48
offset the price as it was running away.
18:51
But You're at a point where OPEC is fighting back and so you have
18:54
this battle, that's currently taking place between OPEC plus
18:58
cunt, net producing countries versus Net.
19:01
Consuming countries, that are trying to control things through
19:03
treasury curves and printing a bunch of Fiat money.
19:07
And there's this battle taking place between net, producers and
19:10
net consumers that are basically making up this digital supply of
19:14
units that they're just, you know, trying to control those
19:19
and clawing them out of the market.
19:21
And they're saying, you know, What we're going to we're going
19:22
to prevent the amount of oil that's going into the market to.
19:26
And so that effect is insanely profound and insanely important
19:31
for just the simple idea. That none of this is under
19:35
control, there is a battle taking place, so Preston,
19:40
correct me if I'm wrong here. But if we're sliding into
19:43
recession, you would expect oil to go down, right?
19:46
Because they're lovely. Yeah, less people moving around
19:48
in the economy, right? Less.
19:50
Yes, let's demand for oil. So, What would be the Catalyst
19:53
to cause oil to spike up in your opinion?
19:57
Well, I think that I think Opex play is hey if we can control
20:01
the amount of Supply like we can make the price go up.
20:04
Like if they just let's just take an extreme example.
20:07
If they cut the amount, they're supplying into the market by
20:10
half which they're clearly not doing that.
20:13
But if they did just to kind of understand the mechanics like
20:17
you're going to shoot the price to the moon on Royal and so
20:21
there. Are there.
20:22
I think their play is, oh, you think you're going to be able to
20:26
create a recession and all this, this whole backstop facility
20:30
that you just stood up is a play of.
20:33
Let me, let me describe the, the mechanics of that real fast, so
20:36
people can understand. So, all the debt, on every
20:40
single bank's balance sheet was basically at a discount, will
20:43
just say about 15%, which makes them insolvent.
20:46
So they step in and they're like, well, you can just put
20:48
those on deposit and will basically bid that The whole
20:52
treasury, all your treasuries by 10% and then you're not
20:56
insolvent anymore because you know, it was a 5% interest that
21:02
they would put it on deposit and then it gets bid to the to the
21:04
premium. So basically they bid the price
21:06
of every single debt, instrument on their balance, sheets by 10%
21:09
making them solve it that's manipulating the market, right?
21:13
So if I'm an OPEC place, if I'm going to play Devil's Advocate
21:16
and sit on the others, on the other side of the fence and say,
21:19
all right, the they're going to, they're going to backstop this
21:21
they're going to put Um on deposit, they're going to create
21:23
a recession. Interest rates are going to come
21:25
screaming back down and then they're going to basically plop
21:28
those all those debt instruments back onto their balance sheet.
21:31
It's going to appear like they just diverted the crisis
21:33
completely, that's the play, okay?
21:36
But with throws a wrinkle into that play is if you can actually
21:39
create if you can sustain the inflation and maybe even Elevate
21:43
the inflation further by controlling the number one
21:47
Supply input which is energy to all these Supply chains.
21:51
All the sudden you're not you are not the entity that you
21:54
think you are as far as being able to drive recessions and
21:58
control the global economy. There's another player that has
22:02
a whole lot of power in this which is the OPEC plus net
22:06
producing countries that are saying this is a bunch of BS and
22:10
we're going to we're going to go to battle on this and we're
22:13
going to make you look like fools.
22:15
So yeah it's interesting too because if you look at like you
22:19
know the B Administrations Lack of, you know, their
22:22
unwillingness to produce oil. I wonder how fast we could turn
22:25
on the spigots in America and Europe and get enough oil out.
22:29
If Supply was to restrict, probably not fast enough, right?
22:33
I heard that there hasn't been a lot of investment in the, the
22:36
oil refinements. I heard like the like the like,
22:39
the average age is like 20 years or something crazy like that.
22:42
But what fascinates me is all the political motivations behind
22:47
all of these decisions. And if you guys remember, right?
22:51
What happened quickly? After you Russia, invaded
22:55
Ukraine. You know, you're a basically
22:58
went into an energy crisis, right?
23:00
And they were, we're being told for, I don't know.
23:02
The public was being sold for, I don't know how long, hey, you
23:05
know, renewable energies. We could totally do this.
23:08
They were, there was this very famous video of trump.
23:11
Basically, warning the German saying, hey, you guys, you guys
23:15
are beholden to Russia and, and whatnot.
23:18
So I just the And then I'm going to tie this in with Bitcoin, of
23:22
course, under a Bitcoin standard.
23:24
I don't think you know, these types of decisions would be
23:27
viable and I think say, 15 touched upon this in the Bitcoin
23:30
standard. I think like all of these
23:32
decisions all these politically motivated decisions, our energy
23:35
policies are just because governments have access to this
23:38
money printer and it allows them to do all this crazy things.
23:43
Totally. And that this is how this is how
23:46
the other half of the world is fighting back.
23:48
Is there saying you, you think you're controlling this cycle,
23:53
right? And they're looking at and
23:55
saying, well how about this? And they're just basically
23:58
taking a wrench and just throwing it into the gears by
24:00
right bicep by adjusting, the supply of energy itself and when
24:05
they're doing that if if in this is a big if because I don't know
24:09
if they're actually going to be able to maybe Maybe maybe the
24:13
the recessionary inputs are way stronger than their Suffocation
24:19
of the supply of the oil market like the speed of this, I don't
24:22
know. But let's just let's play
24:25
Devil's Advocate and say that they're successful and the price
24:27
of oil surges over 100 and maybe it goes up to like 140 or
24:31
something crazy because maybe they're doing things behind the
24:34
scenes to control that every person treating treasuries in
24:38
the world. NATO.
24:41
E7. Treasuries like I'm sorry you're
24:45
getting your face ripped off twice, right?
24:48
Like it is, it is going to be devastating to that market if we
24:52
continue see and energy prices run at a time where they they
24:57
need, they desperately need these.
24:59
The central Bankers in the G7 countries, desperately need a
25:03
recession desperately to get any of this under control and to
25:07
make the bank's balance sheet solvent again without these
25:09
backstops and surgical tools that there They're that they're
25:12
using, you know, it's interesting too.
25:13
Is that the, you know, American investors?
25:16
Are you know, people who are in American equities?
25:18
They don't, they don't want to reception either.
25:19
And so, you know, I mean the, the financial guys are blocking
25:23
it recession in the market. Once any sign of weakness coming
25:26
out of the fed, the market is like, let's just go immediately
25:28
back up again. And we're actually, we're closer
25:31
to the all-time highs now than we are to the market bottomed.
25:34
Yeah? Right.
25:35
Which is in this jerk for easy. And this is after this
25:37
aggressive cutting from the sorry, raising from the fed,
25:41
this Rest of raising from the fed and everybody was like, If
25:44
the Fed hikes and I believe this two years ago, that if the FED
25:47
hikes risk assets, can't do well.
25:50
Big Tech, can't do well Bitcoin, Can't Do Well turns out.
25:52
That's not true, right? And so I think it's there's a
25:55
lot of its man. It's really complicated what's
25:58
going on. It's hard to like get a handle
26:00
on it. It's counterintuitive because
26:02
things that you would expect to be happening right now are not
26:06
happening. In fact they're doing the exact
26:07
opposite, I'll give you example. So like when I'm looking at you,
26:11
Employment numbers. And I'm looking at the, the this
26:15
- spread and credit that currently exists right now, you
26:19
would expect equities to be getting ready for like a massive
26:24
drop or to get just punished. And from momentum, if I'm just
26:29
speaking strictly about momentum, momentum in equity
26:32
right now, is suggesting, we're just getting ready to start up
26:35
or odd. Yeah.
26:36
Right. That doesn't make any sense,
26:38
whatsoever. And so, the only way that I can
26:41
rap, Head around. That is the market is calling
26:47
the the BS of the central bankers and saying no I think
26:50
you're going to have to debase the currency and such a drastic
26:54
way and in short order like within the coming two quarters
26:58
or three-quarters you're going to have to do that.
27:00
That we are front-running the move and we're bidding scarce
27:05
profitable Equity. That's what I think's happening.
27:08
It's important to understand what you were talking about.
27:10
You know, the battle that was Raging between, you know, OPEC
27:13
and the powers that be over here.
27:15
I mean there's also a battle that's constantly always being
27:18
waged between the fed and the market and what the FED mainly
27:22
does is psychologically manipulate the market and the
27:25
market attempts to, you know, tell whether the FED is lying or
27:28
not, right? And I think, I think more so
27:31
than ever, the market has gotten wise to the fact that like,
27:35
nope, this is a game of chicken and none of us are swerving, if
27:38
you look at the passive flows and to ETFs, Investors haven't
27:42
blinked. I mean, the passive keep coming,
27:45
they keep coming because where else?
27:47
You gonna go. There's no other game in town,
27:49
right? And you're going to have to sit
27:51
and take devaluation because of the inflation rate.
27:54
And so even, you know, people in their 401ks, haven't pulled
27:58
people who are, you know, just passively indexing haven't
28:00
pulled. Like so if you're, if it's a
28:02
game of chicken, the market is not budging, right?
28:06
And Powell is not budging. Also, so, like something is
28:09
going to have to give at some point.
28:10
Something's Gonna have to break. Right.
28:12
But hold on. I guess I would fascinates me in
28:15
perhaps, it's, you know, taking the orange pill and then kind of
28:18
opens your eyes to a lot of things is, I don't think people
28:21
would be necessarily okay with this system if they really knew
28:26
what was going on, I think the vast majority of people were
28:29
completely asleep to this. If you live in the United
28:31
States, the bread and circuses are strong.
28:33
So to speak, you've developed Financial platforms.
28:36
It's really in the global South that, you know, the guy, the guy
28:40
in the suit on TV goes on Gives a speech.
28:42
I'm like, why you have to use their money and everyone doesn't
28:45
really take them seriously. That really hasn't happened in
28:49
developed countries, you still take the guy on TV with the
28:52
suit, seriously, even though the things that he's saying, you
28:56
know, like I don't know if you guys have seen like the ret, the
28:58
recent press conferences from Powell, like, you know, to me,
29:03
doesn't even. Did you guys see that?
29:04
Very famous video, where he tried to explain why two percent
29:07
inflation? Right.
29:10
Yeah, I hadn't but I could imagine like, it's so
29:13
ridiculous. You know, Nico, I like Powell
29:15
has a dual mandate right. And on the one hand, he's he's
29:18
responsible for low unemployment.
29:20
And on the other hand, he's responsible for Price stability.
29:22
And he's basically letting everybody know, I don't give a
29:24
fuck about low unemployment. I'm trying to cause high
29:27
unemployment. In fact, I only care about price
29:29
stability. That's it.
29:30
So, I mean, yeah, if you're one of the average Americans who,
29:33
you know, you don't have many assets, you're working a job,
29:36
you're living paycheck to paycheck, you don't have foreign
29:38
dollars in the event of an emergency.
29:40
High unemployment is basically a death knell for you and pal.
29:44
And you know, the powers that be are trying to cause that in
29:47
order to save the sinking life raft and they have to, there's
29:50
no other move that they can really make.
29:52
I mean, if we were sitting in the same chair, we would
29:54
probably do the same thing he's doing.
29:56
In fact, I actually think pal is a very good fed chairman, right?
29:59
It's just, he's been given an unwinnable task, no doubt.
30:03
Yeah, I actually have, I have the clip for you guys if you
30:05
want to check it out. It's about two minutes.
30:07
All right, let's do it. Real public for those Working
30:10
Families of people by 2%. Why is getting it to 2% so
30:13
important. So that's that has become the
30:16
globally. Agreed essentially, all major
30:19
Central bank's Target 2 percent inflation, one form or another.
30:22
And how does that help my Nevada Families?
30:26
How does have helped people in it?
30:27
I'll tell you how it does and it's, I guess it's obviously
30:31
not. It's not obvious how that is.
30:33
But what 2% inflation to have people believe that inflation is
30:38
going to go back to 22 percent really anchors inflation there
30:41
because, you know, the evidence is and and the modern belief is
30:46
that people's expectations about inflation, actually have a real
30:49
an effect on inflation. If you expect inflation to go up
30:52
5%, then it will, you know, if everyone kind of expects that
30:56
because that's where Buzz, everything households will be
30:58
expecting and, and it'll kind of happen because they expect it.
31:01
So having a 2% inflation goal where which we had for many
31:04
years. Okay, what did you just say?
31:09
By the way, that's my Senator Cortez masto.
31:12
So I'm proud of her. She did a good job normally.
31:15
I don't agree because she's a Democrat.
31:16
But she did a good job. I mean that I am speechless.
31:21
Yeah. Me too.
31:22
I don't know what to say. I don't know what to say other
31:24
than like, what a clown show. Yeah.
31:27
Yeah. He's explained.
31:28
He's explaining what a psychological manipulation game
31:30
it is though because he's saying if people believe it's going to
31:33
be higher and we suck at our jobs, then it will be higher
31:35
because we suck at our jobs, right?
31:39
Crazy. Well, I mean, it's, it's
31:40
mathematical. It really is, you know, when
31:45
you're, when you supply, the amount of currency.
31:47
I mean, I've used this example in some other interviews with
31:51
like Monopoly. Like, if you flood the board
31:52
with a bunch of monetary units, like it's going to change the
31:56
valuation of everything on the board.
31:59
There's other there's other ways to impact inflation Beyond just
32:02
the monetary, just the input of the of the units.
32:07
I mean you could you could go through A massive like, if we're
32:12
talking about a small jurisdiction, right?
32:14
That has its own currency, if they go through like a situation
32:17
where they're at war, or they're dealing with this, they have to
32:20
adjust the, the monetary Supply there could be damage to the
32:23
infrastructure which will drive prices.
32:25
Like if I go in there and I destroy all the supply chains
32:27
for oil, like price of oil is going to go up because it's
32:31
harder to get it. So there's things that impact
32:33
it. But at the core on a long trip
32:35
on a long-term Trend like if you're just doing the the number
32:38
of units in this, System. That's why it goes up.
32:39
So the question is, is a very important one and just watching
32:43
them tap dance around is just, you know, hilarious.
32:46
Because there's no way you can answer that question.
32:49
It's so absurd. Like, why?
32:51
And, you know, and this goes down to like the very important
32:54
question that I believe that once people start asking this
32:57
question, I don't think they'll have a response to it.
33:00
And the reason I'm saying that is because, if you look at all
33:03
their proposals pushing their Central Bank, like the Central
33:06
Bank digital currency, they always talk about making, It's
33:09
more efficient for some reason, they avoid the inflation
33:13
conversation altogether and the reason I believe that is is
33:17
because it's indefensible. I don't think you can defend
33:20
that position. Especially, if now we have a
33:23
proof, we have an alternative that has proven that not only
33:27
does it work, it actually gains in purchasing power over time
33:30
and I think the the biggest tell is their reaction or their
33:35
hostility better said towards the industry.
33:38
You know, Nick Carter wrote a great piece, right?
33:40
Operation choke point two point O.
33:41
We all know how, you know, Caitlin Long's Bank was treated,
33:46
right? So it's just interesting how
33:48
they're attempting to use. Christine lagarde's own words,
33:51
really closed off that escape valve.
33:53
They don't want, they don't want people opting out in the first
33:56
place. Hmm, completely.
34:00
So, where does this go from here?
34:01
Gentlemen, where do you? You know, things are.
34:05
Things are obviously dire as Preston was Explaining earlier,
34:10
you know, of course, we don't have a crystal ball but you
34:14
know, what do you think happens in the next six months to a
34:17
year, you know, I don't think I don't think we've seen a
34:21
recession pressing or at least people don't realize that we're
34:23
in a recession. So you know and that the
34:25
argument from the FED is like oh that you know this is the soft
34:28
soft Landing that we were talking about.
34:29
So do you still expect one in 2023 or 2024?
34:33
So I think people need to come to grips with what they're
34:36
seeing and Equity markets in particular.
34:38
And Bitcoin might be drastically different than what than what
34:46
the regular economy is doing. So you might have like
34:51
ridiculous unemployment numbers and you might have the stock
34:54
market raging and I think that that's something that none of us
34:57
in our lifetimes have ever experienced or seen and what
35:01
you're getting. I did a different interview with
35:03
somebody and I was talking about it from just like a mechanical
35:06
engineering, maybe standpoint like Resonant frequency.
35:10
So resonant frequency is when you're supplying an input.
35:13
And the thing that's that's coming at you is basically 180
35:16
degrees out of phase of what you're trying to to do.
35:19
And so I think that you're starting to get to a point where
35:22
Central Banking policy and inputs of more Fiat is actually
35:27
at resonant frequency with the rest of the of the economy.
35:32
Right now is a perfect example where I was saying that the
35:35
equity Market on the NASDAQ and the S&P 500 hot all said it's
35:38
It's closer to the high than it is the low and you're at a point
35:43
where the market would typically be getting ready to go through a
35:47
big sell-off and then maybe Central Banking policy but
35:51
they're they're going to be supplying so much Capital so
35:54
much. Let me rephrase that.
35:55
So so much digital monetary Fiat units into the system that I
36:02
think it's going to blow people's mind because it's
36:05
trying to offset just massive amounts of credit impaired.
36:08
I meant that is is occurring because you have this upside
36:13
down yield curve against inflation.
36:16
And so as they continue to supply this, they're supplying
36:18
more of the same policies that got us here that that broke
36:21
Supply chains, that is causing prices to rip.
36:25
And so it goes to this like where are you going to put your
36:29
money to preserve it you have to own something that's scarce and
36:34
you have to own something that generates free cash flows.
36:37
That's not going to debase the number of shares that represent
36:39
that Equity. Those are the only two places
36:41
you can go to preserve. Your buying power one especially
36:45
when you're talking about Bitcoin that has a really small
36:47
market cap that has the potential to mature into this
36:50
really substantial market. Cap is where you're going to see
36:53
the biggest bang for your buck versus you know like Apple stock
36:57
or something that's going to probably remain profitable.
37:01
That's not going to debase the number of scarce shares that
37:03
exists. That's going to do really well
37:07
in the face of Fiat that Most people are used to measuring it
37:11
against, so I know I was a little bit all over the place
37:17
with the response but you got to expect market conditions that
37:22
are very different than what you've seen in the last 40
37:24
years, they're going to be out of sync with each other.
37:28
You're getting this resonant frequency, that's just causing
37:30
disruption in Supply chains that are very that are barely
37:33
profitable, which only continues the unwind in the cult situation
37:39
with respect to inflation, you know, there's this scene in The
37:44
Simpsons movie, when they put a giant Dome over the town, and he
37:47
goes, are you telling us? We're trapped, like rats.
37:49
And he goes, no rats. Can't be trapped this, easily,
37:51
your trap like carrots, you know.
37:54
That's, that's what they've done to the market.
37:56
There is nowhere to escape to and you know what I mean?
38:01
For those of us who are in Bitcoin, like we already have
38:03
our plan is in place. We're already good.
38:05
We're in Cold Storage. Like everything's fine, but like
38:08
imagine. Had to get out immediately into
38:10
Bitcoin in size and all the on ramps and off ramps were all
38:13
wonky and cut off. How are you going to do it?
38:16
You really can't right now. And so I think, I think another
38:19
thing too is like we always talked about Bitcoin being so
38:21
volatile, right? And that, you know, there was
38:23
this Michael sailor idea. He was promoting like two years
38:26
ago that the volatility would go down over time.
38:28
And we would call her this asset as the big money came in that
38:31
turned out. Not to be the case.
38:32
I think the reason it wasn't the case is because the traditional
38:37
system is growing. More volatile by the day like
38:40
Preston was talking about all these inputs and outputs are all
38:43
over the map. And, you know, moment to moment
38:46
in the market, the emotions are so strong that it either feels
38:49
like we're going to the Great Depression and we're all going
38:52
to be fucked and we're gonna lose all our money or oh my God,
38:55
we're also Rich. This is like.com 2.0.
38:58
This is amazing. Right?
38:59
And you, the market has become extremely bipolar and it
39:03
oscillates wildly between these these two phenomena, right?
39:07
And so, I think what's going to Happen ultimately is what press
39:10
and said, which is that the vast majority of Americans people who
39:14
without assets people who, you know, work in 925 live.
39:17
Paycheck to paycheck, don't have a lot of savings.
39:21
They're going to be really hurt by the policies that come later.
39:24
Because in order to prop, the whole system of float, you're
39:26
going to have to flood the Zone with cash, right?
39:29
It's like that. Steve Banning saying flood, the
39:31
Zone was shit. You have to flood the Zone with
39:33
cash. Like you just have to and you
39:35
have to keep flooding it and flooding it and flooding it and
39:37
basically like Every time you print you're gonna have to print
39:40
twice as much as the time before and it's going to be half as
39:43
much time between printing Cycles so you're going to print
39:47
twice as much half is half the time and that's an exponential,
39:50
that's what Jeff Booth talks about.
39:51
Like and we're just going to a place where there's another
39:55
thing like Bellagio. Has this bad about
39:58
hyperinflation Coming to America in 90 days, right?
40:01
People been talking about hyperinflation, I was in a room
40:03
of some that some of the dumbest people on club house the other
40:05
day and they were talking about hyperinflation and the dollars.
40:08
Collapse against the brics Nations, Etc.
40:10
Now, I'm not saying that that is happening right now, okay?
40:13
But I am saying that at some point, this system unwinds, and
40:17
hyperinflation is always demarcated by a loss of
40:20
confidence in the underlying currency.
40:23
So when you see people begin to lose confidence in the
40:26
underlying currency and they talk about it in mainstream
40:29
media, it's a canary in the coal mine.
40:31
It's a tell that something is going us, right?
40:35
And back to the point that I was making earlier hottel with the
40:38
Showing like the UK's bond yield curve and the European bond
40:42
yield curve. Like we are so interconnected
40:45
here in the US, our yield curve, doesn't look all that bad
40:48
relative to there's their their double-digit inflation.
40:51
They're dealing with a situation from an energy standpoint that
40:54
they have no control over and if you don't think that a market of
40:58
that size can have a spillover effect here to the US and the
41:01
rest of the planet. You're you just don't understand
41:03
how interconnected things are. I think something people don't
41:06
know about is the euro dollar system, right?
41:08
And How many? Yeah, dollars are created in
41:11
Europe. I think it's actually more than
41:12
are created in America. So yeah not only are we
41:15
interconnected, but it's basically the same system across
41:18
the board, right? Yes.
41:20
We should pull up the Opti seems like you have them so we could
41:24
visualize for anyone who's looking at it.
41:27
What Preston was referring to. So this is, this is the US, has
41:31
yield curve and I think you get a lot of u.s. pundants that look
41:34
at this and say, oh it's you know, the credit Market is
41:37
basically saying That the recession is coming and that the
41:41
FED has finally got what they wanted right by with all their
41:45
tightening, based on looking at this curve.
41:47
That's what a, that's what I think most us pundits would say,
41:50
but, where I would push back, and I'm not saying I'm right,
41:53
I'm just saying where I would push back is I'd pull up the
41:55
next two curves, which is the UK here, right?
42:00
None of that is under control at all and then the European bond
42:06
yield curve, which is here that's not under Control.
42:09
That is that is a credit Market. That is aggressively selling off
42:14
with tons of volatility that seems to be normally like, if
42:18
you were going to do it, an average true range of the
42:19
volatility there. It's completely in keeping with
42:22
the trend of volatility and they don't have any of this in this
42:26
double-digit inflation under control in Europe and at a time
42:30
where OPEC is saying that they're going to you know try to
42:36
I mean they didn't say they're going to do this but their
42:38
actions are saying that they're trying to keep prices elevated
42:42
for energy. So like whatever it is you
42:47
think, you know, based off of the the past 40 years in what
42:50
bring stability to markets, I think you can just, you know,
42:53
light it on fire and throw it in the trash can because that's
42:56
where we're at right now. There's a lot of Boomer
42:58
investors who are extremely confident.
43:00
I would say overconfident about the fact that we're going to run
43:03
the 70s back. I don't think that's happening
43:05
at first. Now maybe I'm a young idiot who
43:07
doesn't know what he's talking about, but it just doesn't, it
43:10
doesn't seem like the same history.
43:11
Damn it. What is it?
43:13
Because here's what's different. So the actions of manipulating
43:20
the cost of capital for 40 years and I think it's important that
43:25
in that first 40 years it wasn't anything like it's been in the
43:27
last 10 years okay I will emphasize that but in the last
43:31
10 years the the manipulation of the cost of capital itself which
43:35
is Manipulating the price of everything has been.
43:39
So grossly over used especially with QE and now basically, this
43:44
backstop is basically yield curve controls what it is its
43:47
yield curve control, whether people want to believe it or
43:49
not, you are so grossly manipulating the cost of capital
43:54
that the the real impact is that you are destroying Supply
44:00
chains. You are consolidating Enterprise
44:03
instead of there being 10 businesses that can provide
44:06
Widget X, there's five or there's three and then when one
44:09
of those three go bankrupt because their energy inputs are
44:12
too expensive. Now there's two, what does that
44:14
do to the price of things? If you can only choose from two
44:17
vendors, it makes the prices go up.
44:20
It's that simple. And so what they're systemically
44:24
doing, is they're poisoning a naturally free and open economy
44:29
and all the supply chains. This apply the pieces and parts
44:32
that would make prices most optimal we saw.
44:36
Saw that Peak and now its undoing itself.
44:38
And it's like, a Waterwheel, once it starts spinning the
44:40
other way, it could will keep spinning that way because
44:44
that's, you know, the momentum that it has.
44:46
And so they've conducted these policies.
44:50
It's actually brought a lot of stability in the form of like,
44:53
prices for everyday consumers. But, what they're not seeing is
44:57
the, is the prices of scarce things like Health Care, like
45:03
energy costs like meat. And like these things that that
45:09
people take for granted are now starting to unravel themselves
45:12
and they think they can just step in and do some keystrokes
45:16
by adjusting the amount of units that are in the system because
45:19
it's worked in the past to bring stability.
45:22
But now they've actually got a systemic fundamental physical
45:26
issue with Supply chains. And they've got, they've got
45:29
OPEC plusnet producers that are pretty pissed off about how
45:33
things have gone over the last, particularly the last Ten years
45:37
and they're saying they're fighting back in there saying
45:39
no, we're not going to participate in this scam anymore
45:42
is really what their response is.
45:43
But with they're doing with oil prices.
45:46
Also, you don't have the same ability to do Financial
45:50
repression that you did 50 years ago, right?
45:53
Because what we're seeing is, we're seeing an analog
45:55
traditional system, come up against a new digital system,
45:59
and every time we've seen that, the analog system has been
46:02
completely dematerialized by the digital system.
46:04
So if you want to say, Hey, we're going to cut the ACH on
46:08
ramps and off ramps. Well, I can guarantee you that
46:11
the digital system is going to find a quicker more efficient
46:14
way around that almost immediately, right?
46:16
You want to cut Swift, you want to cut now, the digital system
46:20
is going to find a way around that and it's going to be able
46:23
to dematerialize you. So you can't fight too hard
46:27
against the the exits. Because if you do there's a
46:29
Streisand effect to it to where you you know suddenly you say
46:33
the fed, the FED says band Bitcoin.
46:35
Or, you know, the US government says Ban Bitcoin and suddenly
46:37
people go, wait, why do they want to ban Bitcoin?
46:39
Right, there's it's like yelling fire in a crowded theater.
46:42
It's it would be the worst thing that could possibly ever do.
46:45
Not to mention like the US did they don't benefit from having
46:49
that geograph with Bitcoin lives in cyberspace.
46:53
You can't really you know and you could see this with their
46:56
attempts to regulate the shit coin casinos right.
46:59
You know, they just move overseas, right?
47:01
You know that they're doing their business over the
47:03
Internet. It's a lot harder for them to
47:06
You know, use the tools that they're accustomed to using for
47:09
a very, very long time and now I think they know that and the
47:13
reason I'm saying that is the, the recent, you know, so-called
47:16
Tick-Tock band, which I think that's the that's the excuse.
47:19
That's the justification that they needed.
47:22
But if you look, if you've read the wording in that bill, you
47:25
know, it's just giving so much power to so much more power to
47:30
the, you know, the bureaucracy, really and just look whatever we
47:35
say. You know, is a danger to
47:37
National Security, you know, will be banned in my opinion as
47:41
a first-generation American American.
47:43
I'm seeing this and I'm like, this wasn't the country that I
47:46
was, you know, sold as like what is going on here?
47:49
Hmm. Yeah, the restrict act, I think
47:51
is deeply unamerican. I think everybody who's against
47:55
it, should rally to make sure that it doesn't pass, but it
47:59
won't be the last time they try something of that sort like a
48:02
Patriot Act 2.0 for the internet again there's a bunch of people.
48:06
These Boomers, you know, these Elder boomers are sitting on the
48:09
top of the power structure. And, you know, they don't know
48:12
what to do about this new world, right?
48:14
And frankly, they're a little long in the tooth.
48:16
They've been sitting on these, you know, hi purchase for too
48:19
long. They should have moved on 10 or
48:20
15 years ago and let younger people Gen-X take their place.
48:24
But they haven't, they're scared of the internet and they want to
48:26
regulate it away. Create a driver's license for
48:29
the internet, this kind of stupid shit.
48:31
And all of that is deeply. An American.
48:33
You can't beat China by becoming China.
48:35
We are a free and In society and we always should be if we're
48:38
going to remain on top, if we're not, then you know what?
48:42
We've seen over time when Reserve currency switch, is that
48:45
the more fair the more rules-based the more capitalist
48:48
system, it tends to win outright.
48:51
And so there's all this talk of the dollar versus the Yuan or,
48:54
you know, the, the G7 versus the brics Nations, none of those are
48:58
as Fair as capitalist or as rules-based as Bitcoin, those.
49:03
Right. And none of the Frontiers are,
49:05
as open or is why? There is decentralized as the
49:08
internet. The internet is full of
49:10
possibility and Bitcoin is the coin of the realm.
49:12
So if you're asking me what becomes the next Reserve
49:14
currency, I think it's obvious what I think.
49:17
Yeah and I think I think I'll Salvador like you're seeing what
49:21
is happening in El Salvador. And then I think the tell is how
49:23
much the corporate media machine is LT is attacking to the point
49:27
that, you know, there was there was you heard the saying right
49:31
now? Boo, Kaylee is a danger to
49:33
democracy, even though he has 90 90 percent approval, All rating
49:36
even though he's lowered crime rates to Historic low and he's
49:40
had record GDP growth ever since they started tracking that sort
49:43
of thing that guy's a danger to democracy, but what we're doing?
49:47
No, don't worry about that, right?
49:48
So I just find that interesting. Do you guys believe that it, is
49:53
that Bitcoin, that El Salvador adopting, a Bitcoin standard has
49:57
played a role in the success of L7?
50:01
And the reason I'm saying this right is Preston.
50:03
You know what I'm talking about American?
50:04
How do you know what I'm talking about?
50:06
Once you take the orange pill, kind of changes your operating
50:09
system in the view, the way that you view the world, all of a
50:11
sudden you become filled with hope you.
50:14
You see, you know, you see opportunity in the future when
50:17
the money and your savings are increasing.
50:21
In purchasing power over time. Most people, the vast majority
50:24
of the world are still in that inflationary mindset.
50:27
Now, what happens when you adopt that deflationary mindset but
50:31
you apply it to a whole country and I think that played a role,
50:34
maybe I'm seeing something that's not there.
50:36
They're I don't know. Preston, what's your take on
50:38
that? I definitely think it's played a
50:39
role and I think Yeah this is an interesting stat that I heard
50:44
somebody say if you started dollar cost averaging Bitcoin at
50:47
the at the peak of the last cycle at like 69 or 70 K or
50:51
whatever it was and you dollar cost average everyday.
50:55
Right now you're up which is insane to think about how
50:59
profound that is that you would actually be up in your position
51:02
if you dollar cost average every single day since the top because
51:06
we're not, we're nowhere near the top right now.
51:09
So there's just this really interesting.
51:11
Thing about Bitcoin even though it's got so much volatility.
51:16
If your dollar cost averaging into it consistently like you
51:20
can see the impact of the Fiat lie so clearly.
51:28
But so few people do, it's so simple, but so few people do it.
51:31
So when I look at you Kaylee, I think he's kind of Taken on this
51:34
approach of like, Hey, we're going to start looking at how we
51:38
operate as a country with. Bitcoin, as our unit of account.
51:44
And, and it's a difficult transition, especially for a
51:47
country like El Salvador. Any other one of these countries
51:50
that have the IMF basically putting them into slave Hood
51:56
with the, with the actions that they make by just continuing to
51:58
roll their debt and roll it into larger and larger numbers.
52:01
And the way they were really able to control that was by just
52:04
reducing the yield on the debt, but the, the debt was just
52:07
getting larger and larger. You can do that with the And you
52:12
can only do it as long as inflation is not going up,
52:15
right? And so now you're at this, at
52:17
this Crossroads where you Kaylee could see the farce for what it
52:21
was made, the transition appears to be doing some type of
52:26
strategy, whereas, country is trying to stack Bitcoin.
52:30
It's I think it's hard for them because I don't, I don't
52:32
necessarily know that they're a net producer, which makes it
52:35
very difficult. Bitcoin is for net, producers
52:37
period, like it's nearly impossible to stack it unless
52:40
you're a net producer of Some sort you're going to have to
52:42
sell it because you just have to if you're a net consumer and so
52:48
I think that's that's the challenge for those types of
52:50
countries is if they're not net producers, it's going to be
52:53
really hard for them to take on a Bitcoin strategy and to
52:56
actually retain their their treasury in Bitcoin.
53:00
But for countries that are net producers, it's going to be a
53:02
lot easier and I think you Kaylee is, is this is, this is
53:06
where I really like puke a lie. He has demonstrated to the world
53:10
what it looks. He's basically like
53:11
Microstrategy Michael sailor, but for like a nation state
53:14
level, he's demonstrating to the world.
53:16
What it looks like as long as he can.
53:18
Stay on that standard and continue to do it.
53:22
And hopefully we can get a bull run to to really kind of
53:25
demonstrate to the world. What it what it does for a
53:27
country like that. I think it's going to be
53:29
insanely profound. What happens in El Salvador
53:32
moving forward and and I think it's I think it's brought in a
53:37
lot of just outside tourism and attention and I think his policy
53:42
with respect to trying to attract Bitcoin country or
53:46
Bitcoin companies into his country is massive.
53:50
I think that you're going to see some of the fruition of like
53:54
what that means in the coming three years, a hundred percent
53:57
and so named bouquet that nation state model will be Vindicated.
54:02
And the public company model will be Vindicated as well.
54:05
And that all happens the next cycle.
54:07
So, holy cow. How do you want to add to that?
54:12
Yeah I just think I think one of the my big take aways from El
54:14
Salvador is that nation states that flourish over the next 100
54:19
years are going to have to respect the sovereign
54:22
individual. And what does this mean?
54:24
It means you're going to have to respect encryption powered
54:27
individuals. So these are individuals who
54:29
have asymmetry against you, right?
54:32
So if you want to fuck with them, they have a me.
54:35
To defend themselves which is a symmetric.
54:38
And I think this is something that you're going to have to put
54:40
at core. You know, the smallest minority
54:43
in the world, is that of the individual America used to be a
54:46
place that prize, the individual.
54:49
And if we're going to flourish over the next 100 years, we need
54:52
to find that ability to put the individual front and foremost.
54:57
And if we don't, then we're going to lose out to Nations
55:00
that do 100% 100%. And you see that it It's
55:05
interesting, you had an article in Bloomberg Hong, Kong with the
55:09
approval of the CCP is saying, hey, we actually want to be, you
55:14
know, a friendly quote unquote, their words, not mine crypto
55:17
city, right? So I think America specifically,
55:20
you know, the the the bureaucratic Elite need to wake
55:23
up to this reality. If you know, you can't Bitcoin.
55:26
You can't opt e, says this all the time.
55:27
You can't ban Bitcoin. You can only ban yourself from
55:30
Bitcoin. Anyways, gentlemen, we're at the
55:32
top of the hour. I want to take more of your guys
55:34
this time. Preston.
55:36
Thank you so much for joining us today.
55:38
American Hollow you as well person.
55:40
Why don't you tell everybody what you're working on these
55:42
days anything? Anything, top of mind, thanks
55:46
for having me. First of all, I deeply apologize
55:49
for messing up my schedule and being late.
55:53
I was looking forward to this conversation all week with with
55:56
both of you guys. Yeah, no, you can, you can find
56:00
me. I'm on a podcast, we study
56:01
billionaires. My Bitcoin specific show comes
56:04
out every Wednesday. Day active on Twitter Noster.
56:08
But thank you so much for having me.
56:10
This was this was a pleasure. I wish we had more time to chat.
56:13
Thanks president. I really appreciate no bro no
56:15
worries at all a bit. That's happened to me a couple
56:17
times. So I completely understand a all
56:20
good brother American huddle. What's up, dude?
56:23
What do you work? Where are you these days, man?
56:25
You're talking to me or space Pro and I'm in your computer,
56:30
man. No, American Huddle's AI.
56:32
By the way, he's not real. Yeah, I'm just I'm just spending
56:37
time with family that talking to people about Bitcoin all day
56:40
long basically just working for free unpaid being a being a net
56:45
consumer. Unfortunately, it's the maybe I
56:49
have to get some money coming in at some point.
56:52
Yeah, I think with the thought I would like to leave people with
56:54
is that, you know, I think we've never seen a technology like
56:58
Bitcoin that enables the type of change that can be brought about
57:03
by individuals. Since you know, maybe like the
57:06
printing press, I mean and big, if you can think of Bitcoin is
57:09
the anti printing press, and so Bitcoin is a technology that
57:13
enables you to change things through, sheer force of will
57:16
write, determination and discipline.
57:19
And like, to me, that's what Halloween is all about.
57:22
And I think of, you know, the Citadel is being a sphere of
57:25
influence that grows outwardly from you and that teaches other
57:30
people about individual rights and you know, the will of
57:34
individuals to change. Society.
57:36
And so, you know, this thing goes as far as you want it to
57:39
go. If you want Bitcoin, to put all
57:42
of your Descendants on their own Dune style planet, where you
57:46
guys fucking mind? For spice, that's created by
57:49
space worms and shit. Like you can do that, or if you
57:52
just want to buy the house with the white picket fence and the
57:55
Toyota Camry in the front, you can do that too, right?
57:57
Like, it's, you can choose your own moon adventure.
58:00
And, you know, my moon adventure is having a seat at the table.
58:05
Power, so that we can change everything.
58:06
So the world is not such a cruel.
58:07
Corrupt slave system. You know what I mean?
58:09
That's just me, that's just me. Hey, I love that, I love that.
58:13
All right. Gentlemen, thank you so much for
58:14
joining us guys. Thank you so much for tuning in
58:16
to another episode of SV L. IR L will be back tomorrow with
58:20
the live show. 1250 12:15 p.m. Eastern Standard Time love you
58:23
all. Catch you guys later.