Latest / Simply Bitcoin / Who Is Trump’s NEW FED Chair Kevin Warsh and Why Is He BULLISH for Bitcoin?! | Bitcoin Simply

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Who Is Trump’s NEW FED Chair Kevin Warsh and Why Is He BULLISH for Bitcoin?! | Bitcoin Simply · Simply Bitcoin

• 0:00
  What day will you be? Announcing your Fed.
• 0:02
  Care pick next. Week tomorrow morning.
• 0:04
  Tomorrow morning. That was last night and Trump
• 0:07
  wasted no time. Earlier this morning, Donald
• 0:10
  Trump officially selected Kevin Walsh to be the new Fed
• 0:12
  chairman. Donald Trump is already saying
• 0:14
  that Kevin is going to go down as one of the greats, but why?
• 0:17
  Who is Kevin Walsh? What does he stand for?
• 0:20
  What are his policy beliefs? Today we're going to dig into
• 0:23
  who Kevin Walsh is. Why him?
• 0:25
  Scott Besson and Stanley Druckenmiller have been laying
• 0:27
  out their economic plans and thoughts for the US for the the
• 0:30
  past decade and what his stances are on Bitcoin and why you're
• 0:33
  not bullish enough. This is Dante Coke with Bitcoin.
• 0:35
  Simply let's go are. There things are there things
• 0:42
  the Chairman can say to you today?
• 0:44
  That would make you back off. Some of the earlier criticism.
• 0:47
  Well, I'd love him to lower interest rates.
• 0:50
  Other than that, what can I tell you?
• 0:52
  Well, on Wednesday, Jerome Powell didn't lower interest
• 0:55
  rates. In support of our goals today,
• 0:57
  the Federal Open Market Committee decided to leave our
• 0:59
  policy rate unchanged. And Donald Trump was like, say
• 1:03
  less, you're fired. the Fed is supposedly supposed to be
• 1:06
  independent from the president in federal policy, but let's
• 1:09
  face it, they're not. They have a central role in
• 1:12
  determining the strength and national security of the United
• 1:15
  States globally. And most importantly, their
• 1:17
  policies have the biggest impact on interest expense, which is
• 1:20
  currently $1.2 trillion. And so out with the old and in
• 1:24
  with the new Kevin Walsh. But who is Kevin Walsh?
• 1:27
  All right? His background is silver
• 1:29
  spoonish. Did his undergrad at Stanford,
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  then he got his law degree at Harvard, where he graduated
• 1:34
  Qumlan while doing other coursework at MIT.
• 1:37
  After law school, he went to Morgan Stanley, where he was
• 1:39
  quickly promoted to be the director of mergers and
• 1:42
  acquisitions for the entire company.
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  At just 30 years old, he was nominated to be a special
• 1:46
  assistant to the President George Bush on his National
• 1:50
  Economic Council. His responsibilities included
• 1:52
  domestic finance, banking and securities regulatory policy and
• 1:56
  consumer protection. He advised the president and
• 1:58
  senior administrators on the issues related to U.S. economic
• 2:01
  policy. And at the same time, he married
• 2:03
  Jane Lauder, who is the granddaughter of Estee Lauder
• 2:06
  and the daughter of Ronald Lauder.
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  Estee Lauder is a $40 billion company and Ron is the sole heir
• 2:12
  to their foundation in all of their assets, and he's worth
• 2:15
  about $5 billion. He also happens to be one of the
• 2:18
  biggest Republican donors and has elite connections everywhere
• 2:20
  across the world. All right, back to Kevin.
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  At 35 years old, George Bush nominated him to be the youngest
• 2:26
  member to serve on the Federal Reserve Board.
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  He served here from 2006 to 2011.
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  He served during and through the great financial crisis.
• 2:34
  And this is where we start to understand his beliefs and his
• 2:37
  policies. Let's take a listen.
• 2:38
  Quantitative easing is fundamentally different than
• 2:41
  cutting interest rates and that it appears to be working through
• 2:44
  fundamentally different transmission channels.
• 2:48
  No longer. Credit channels and lending
• 2:50
  channels appear to be the dominant way in which it impacts
• 2:53
  the economy. It appears much more to be
• 2:55
  working itself through asset prices, whether you think about
• 2:58
  housing stocks or financial stocks, I think that is the
• 3:01
  dominant channel. And as a first approximation, if
• 3:05
  3/4 of our fellow citizens get 96% of their income from labour
• 3:09
  income, it strikes me we ought not be dismissive and saying oh
• 3:12
  everybody wins. When I look at the wealth
• 3:15
  creation across the financial asset world post crisis, I view
• 3:20
  that wealth creation as being significantly above what my
• 3:25
  former colleagues predicted. When I look at what they
• 3:28
  expected in the real economy, I look at the real economic
• 3:31
  performance as markedly worse than they predicted.
• 3:35
  And so that's what I think raises these questions, makes
• 3:37
  them absolutely germane to today's discussion.
• 3:39
  And I very much do worry, as I'm sure many of the people in this
• 3:43
  room do, that we've created a product, not with bad intent.
• 3:47
  We've created a product that might, may or may not turn out
• 3:50
  to be counterproductive. We are in the middle of this
• 3:52
  experiment as we as we are now, but where the gains have been
• 3:57
  extracted by the most well to do by the most sophisticated who
• 4:02
  see that the central banks are to 1° or another trying to get
• 4:07
  asset prices up to drag up the real economy, they get the joke.
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  They have been willing to play the game.
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  And it does strike me as though we have to think about not just
• 4:16
  the efficacy of these programs, but really who are the winners
• 4:20
  and the losers. Kevin Warsh understands that the
• 4:22
  government experiment of QE has failed, and has failed
• 4:24
  miserably. Not only has it created economic
• 4:27
  disparity between the haves and the have nots, it's created a
• 4:30
  system that doesn't actually work as it's to Fed policy
• 4:33
  rates. But you can hear he's pro low
• 4:36
  interest rates and pro American growth.
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  He believes in fiscal responsibility, Government
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  Accountability. And unlike his peers and people
• 4:42
  that come from his background and his past, people who come
• 4:45
  from the Stanfords and Mits and Harvard laws of the world that
• 4:48
  come from rich families. Well, he actually believes in
• 4:50
  technological innovation. He's actually open minded and he
• 4:53
  believes that Bitcoin can serve as the foundation for a checks
• 4:57
  and balances system. On government responsibility,
• 5:00
  he's pro innovation and pro Bitcoin.
• 5:02
  You're not bullish enough. You made reference to Bitcoin
• 5:06
  and I thought I heard a little bit of condescension that people
• 5:09
  are buying Bitcoin in these things but doesn't.
• 5:12
  It Charlie Munger, this is two or three years before he died,
• 5:15
  Charlie Munger attacked Bitcoin. He called it evil in part
• 5:19
  because it would begin to undermine the Fed's ability to
• 5:22
  manage the economy. Or it could provide market
• 5:24
  discipline. Or it could tell the world that
• 5:27
  things need to be fixed. Bitcoin does not make you
• 5:30
  nervous. Bitcoin does not make me
• 5:33
  nervous. I can harken back to a a dinner
• 5:36
  I had here in 2011 with a someone who is another guest on
• 5:42
  your show. I won't say his name, OK, I just
• 5:46
  did Marc Andreessen, who showed me the white paper that was the
• 5:51
  original white paper. I wish I had understood as
• 5:54
  clearly as he did how transformative Bitcoin in this
• 5:57
  new technology would be. Bitcoin doesn't trouble me.
• 6:01
  I think of it as an important asset that can help inform
• 6:05
  policy makers when they're doing things right and wrong.
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  It is not a substitute to the dollar.
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  I think it can often be a very good policeman for policy.
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  And if I were to speak more broadly to what did Charlie
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  Munger and others perhaps have in mind, there is a
• 6:23
  proliferation of securities that go under all sorts of names.
• 6:28
  Many, if not most of them are not worth what they're might be
• 6:31
  being traded for. So what did Charlie say?
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  And maybe his his pal Warren say, there's the innovators, the
• 6:38
  imitators and the incompetence. They're real innovators that are
• 6:42
  happening in and around that new technology.
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  And what I would try to impart towards businesses and bankers
• 6:51
  is that the underlying technology that Mark showed me
• 6:53
  in that white paper or tried to show me in that white paper,
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  it's just software. It's just the newest, coolest
• 6:59
  software that will provide us an ability to do things that we
• 7:03
  could never have done before. We're pivoting from an era where
• 7:06
  value is created through financial engineering, and now
• 7:09
  we're pivoting to an era where value must be created through
• 7:11
  new capital formation. New capital flowing into
• 7:14
  industrial markets, new capital flowing into manufacturing, new
• 7:17
  capital flowing into the United States soil, new capital flowing
• 7:20
  into energy, and new capital flowing into an asset that gives
• 7:23
  the United States a relative advantage over their peers,
• 7:26
  which is not gold. It's Bitcoin.
• 7:29
  It's the new frontier. It's the new treasury reserve
• 7:31
  asset that doesn't have other countries and other nations that
• 7:35
  could be threats or enemies to the United States having a
• 7:37
  relative advantage or a head start on the United States in
• 7:40
  general. Plus, it will also force us to
• 7:42
  actually have to audit Fort Knox, which we haven't done.
• 7:44
  Bitcoins audited every 10 minutes.
• 7:46
  And Bitcoin is part of the president's plan, a part of this
• 7:49
  plan to build new capital formation in the United States.
• 7:53
  To unleash innovation and savings and financing, I'm also
• 7:56
  working to ensure America remains the crypto capital of
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  the world. Regardless of what you believe
• 8:01
  about Donald Trump, he actually does what he says he's going to
• 8:04
  do, crazy or not. And I believe that this Warsh
• 8:08
  Besant and Trump trifecta is going to bring new capital flows
• 8:12
  into the United States. They want America to be the
• 8:15
  leader in several key markets, defense, industrial,
• 8:18
  manufacturing, energy and crypto.
• 8:21
  They've been laying out this thesis, him and Stanley
• 8:23
  Druckenmiller, for over a decade, and This is why you're
• 8:26
  not bullish enough on Bitcoin. They're doing the things that
• 8:29
  they've said that they've wanted to do for the past 10 years, but
• 8:31
  haven't had the economic or political capital to do so.
• 8:34
  Before we go any further on this episode and why you're not
• 8:36
  bullish enough on Bitcoin, let's thank our sponsors.
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• 8:51
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  minutes. Don't sell your Bitcoin and also
• 9:18
  remove your Bitcoin from exchanges where you will be
• 9:21
  sovereign over your assets. When the Weimar crisis that
• 9:25
  we're going to talk about in a little bit actually actually
• 9:27
  hits, the volatility that we're seeing in markets right now is
• 9:30
  not something that you should play around with and you need to
• 9:33
  be ready and secure to remove your assets from that system
• 9:36
  when the time comes. So set up a note, do it
• 9:38
  privately, do it safely and securely, and the team from the
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  exactly how to do this. They'll walk you through step by
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  step. Go to
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  thebitcoinway.com/simplybitcoin. It's the beginning of the end of
• 9:56
  the monetary system as we know it.
• 9:58
  It's not just the US dollar, it's the Fiat monetary
• 10:02
  currencies. So the UK, the Euro, Japan,
• 10:07
  China all have similar debt problems and so on and are
• 10:11
  dealing with the same interrelationships.
• 10:14
  I believe what Ray is saying is true.
• 10:15
  This is the beginning of the end of the monetary system as we
• 10:18
  know it, and this is true for all Fiat currencies.
• 10:21
  You see this when you see assets that are supposed to be safe
• 10:24
  havens like gold erase over 10% and $4 trillion in market cap in
• 10:29
  less than 24 hours. The same thing for silver, which
• 10:32
  erased over a trillion dollars in market cap in 24 hours.
• 10:35
  Bitcoin is no exception, which dove to 82 K as of this
• 10:38
  recording. And here's a chart from the
• 10:40
  Weimar mark as compared to gold during the time of the Weimar
• 10:44
  Republic crisis. And you see massive spikes in
• 10:47
  volatility. You see eventually gold goes way
• 10:49
  up and to the right, but not without some calamity, not
• 10:52
  without a lot of ups and downs in the meantime.
• 10:54
  And it was because it was trying to cement itself as a new global
• 10:57
  currency. And that's exactly what's
• 10:59
  happening with Bitcoin right now.
• 11:01
  The world is repositioning itself.
• 11:03
  America is repositioning itself to be a superpower.
• 11:07
  I'm betting on Besant right now and what's happening in America.
• 11:10
  These stats are absolutely mind boggling.
• 11:12
  IEPA power you used on the tariffs, as you said, we've got,
• 11:16
  we're bringing in 10s of trillions of investments.
• 11:19
  The 10s of trillions of investments turns into
• 11:22
  factories, construction, which turns into factory jobs, which
• 11:25
  turns into consumer spending. You've right sized the the
• 11:29
  government. So government employment is
• 11:31
  down, private sector is up, growth was a stunning 4.74 point
• 11:37
  8% in the past two quarters, biggest back-to-back gains in a
• 11:41
  decade. And we are doing that with
• 11:44
  government finances improving. So that will bring down the
• 11:47
  borrowing cost. The calendar year budget for
• 11:50
  2020. Four, 7% deficit to GDP, highest
• 11:54
  when we weren't at war, not in a recession, all the way down to
• 11:58
  5.4% and getting better. Biggest decline since 2014.
• 12:04
  Generational gains in productivity, soaring
• 12:07
  productivity. We're going to lift workers pay
• 12:10
  record high prices, record high profits and stock prices are are
• 12:15
  soaring. You got a manufacturing
• 12:17
  renaissance and all the key inflation metrics are trending
• 12:21
  lower over the past three months.
• 12:23
  The consumer price index is just 2.1 and core prices are even
• 12:27
  lower at 1.6. And I think that that could
• 12:30
  trend below 1, given energy, as you talked about the
• 12:34
  pharmaceutical discounts and rents.
• 12:39
  So we're expecting a great year in 2026, Mr. President.
• 12:43
  I'm betting that homes will not be a new source of wealth for
• 12:46
  new people trying to build wealth, and that it's going to
• 12:49
  create more gaps for people that don't hold assets like Bitcoin.
• 12:52
  President Trump is saying the quiet part out loud.
• 12:54
  You're not going to be able to get wealthy off of affording a
• 12:57
  home if you don't already have one.
• 13:00
  Existing housing, people that own their homes, we're going to
• 13:03
  keep them wealthy, we're going to keep those prices up.
• 13:07
  We're not going to destroy the value of their homes so that
• 13:10
  somebody that didn't work very hard can buy a home.
• 13:13
  We're going to get, we're going to make it easier to buy.
• 13:15
  We're going to get interest rates down.
• 13:17
  But I want to protect the people that for the first time in their
• 13:20
  lives feel good about themselves.
• 13:21
  They feel like they've, you know, that they're wealthy
• 13:24
  people. And I want them to understand
• 13:26
  it. You know, there's so much talk
• 13:27
  about, oh, we're going to drive housing prices down.
• 13:30
  I don't want to drive housing prices down.
• 13:32
  I want to drive housing prices up for people that own their
• 13:35
  homes. And they can be assured that's
• 13:37
  what's going to happen. I'm betting that the United
• 13:40
  States is going to capitalize itself on a new gold standard, a
• 13:43
  standard outside of the existing system that gives the United
• 13:46
  States a relative advantage over their peers.
• 13:48
  And that's not in gold, that's in Bitcoin.
• 13:50
  We own the exchanges, we own the markets, we own the capital
• 13:53
  flows, and we are going to be the leader in this market.
• 13:56
  So although this is what the crypto market has looked like,
• 13:59
  it's going to turn to this real fast.
• 14:01
  And Kevin Walsh is a signpost of a new economic era, an economic
• 14:05
  era where people are going to be rewarded for energy, effort,
• 14:08
  stored savings, accountability, fiscal responsibility.
• 14:12
  And that asset that allows you to have the most upside in all
• 14:15
  of these scenarios is still Bitcoin.
• 14:17
  What do you think? I think that Bitcoin does make
• 14:20
  sense as part of a portfolio in this environment where you have
• 14:26
  the most fundamental shift, for example, in monetary policy
• 14:29
  since Paul Volcker. This is a big shift that we're
• 14:32
  seeing under the Powell Fed, rightly or wrongly.
• 14:34
  So I'm not surprised in a period of dollar weakness where
• 14:37
  bitcoins doing what it's doing. And I'd also suggest that part
• 14:41
  of the move in Bitcoin is taking some of the bit away from gold.
• 14:45
  I think if Bitcoin never existed, gold would be rallying
• 14:48
  even more right now. But I guess guess if you're
• 14:51
  under 40, Bitcoin is your new gold.
• 14:53
  Do you believe in Bitcoin? In the Bitcoin thesis, one of
• 14:55
  the best ways to participate is through Bitcoin mining and not
• 14:58
  just buying it straight from an exchange.
• 14:59
  Well, you can work with a company like SAS Mining who will
• 15:02
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• 15:04
  machines you need material participation patient in order
• 15:07
  to depreciate this against other capital gains that you might
• 15:09
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• 15:28
  Simply and if you get value from shows and episodes like this,
• 15:31
  please do subscribe to the channel Happy Stacking.