Latest / Financial Survival Network / Bitcoin, AI, Central Bank Struggles and the Pandemic's Impact on the Global Economy - Darryl Schoon #6037

Transcript

Bitcoin, AI, Central Bank Struggles and the Pandemic's Impact on the Global Economy - Darryl Schoon #6037 · Financial Survival Network

0:00
In a capitalist economy. In a backage economy, money is issued in the
0:04
form of credit. Credit hit the markets in massive amounts at credit immediately turns
0:09
into debt and I owe you after it's spent. Once that credit is triggered,
0:14
it becomes debt. So what we focused on after twenty twenty was the
0:18
massive amount of credit injected in system. I think somebody said seventy percent of
0:23
the US dollars credits is in seventeen seventy six were issued in twenty twenty twenty
0:27
one. All right, now this is what three four years later that credit
0:31
has now turned into debt. It's become debt, all right, and we're
0:34
running on gas and fuse. You're listening to Carrie. Let'sa's Financial Survival Network
0:40
where you get valuable information you just can't find anywhere else to thrive in today's
0:45
trying times. You need the Financial Survival Network now more than ever. Go
0:51
to Financial Survivalnetwork dot com and get your free newsletter and gift. Financial Survival
0:57
Network now more than than ever, And welcome you are listening to and watching
1:06
the Financial Survival Network. I'm your host, Carrie lutz Well, one of
1:10
my earliest guests. Who's been with us almost since the beginning. Are to
1:14
believe Daryl, it's fourteen years now we've been doing this and we keep getting
1:19
closer and closer to the abyss. But we haven't quite gone over the edge
1:25
yet, but just maybe. But we're getting so close now that we can
1:30
help but go over the edge. The edge carry is the only thing that's
1:34
left. It's like you kicked the can down the road and all of a
1:38
sudden, there's no more road. We're and the central backers are kicking like
1:44
hell. That can is starting to bounce off of infinity and we are on
1:49
the edge. We are on the edge of the abyss. I believe that
1:53
we are at the point that we've been talking about for fourteen years. When
1:59
we start talking, I believe that we were going to collapse there, all
2:04
right. And we didn't. We didn't because of one thing. The central
2:08
bankers had pulled a trick out of the half they had never done before.
2:13
It was called quantitative music. Before central bankers had always manipulated the credit and
2:19
debt balance in society. Growth, you know, contraction, blah blah blah
2:23
with it with the interest rate. All right, things got a little pipe.
2:25
You loosen straight, things slowed down. You let the interest rate go
2:30
down to speed up growth because there's more credit in the system. Blah blah
2:32
blah blah blah. So it became a you know, that's how they that's
2:36
what it was. It's a card trick. And they had they had acted,
2:39
they were the ones who issued the cards. What happened is in two
2:44
thousand and eight it was so bad that loring the interest rates down to zero
2:47
didn't work. They were then the collapse happened carry in two thousand and eight,
2:54
in September, Okay, in December they went down to zero basically,
3:00
I mean a year and a half before, they had been a five and
3:02
a half percent. All right, now you're at zgo and nothing happened,
3:07
okay, and that's why. On January first, in the in the Genesis
3:12
blockchain of bitcoin, but it's first was issued, there was a statement that
3:16
Alistair Darling essentially the back of England was going to do going to the till
3:22
and it was a program called Quantitative VisiC. And this is the first time
3:25
central baggers were forced to do that. They before to make it go up
3:30
and down all the news, adjust the ballance, the credit the indust rate.
3:36
It's like jiggling the handle on your toilet. Your toilet here, everyone's
3:39
not going the blank, you know, you know, Okay, it's running
3:43
again, and you're going, man, I'm not gonna hire that. When
3:46
he came in here, I paid him four hundred fifty bucks in the dancing
3:49
was right the next week. So you go up there and jiggle it,
3:51
all right, and it stopped. It stops until it doesn't until something is
3:57
so bad in the system below you actually have to call the plumber. All
4:01
right, Well, generally the handle is what if the interest rate thing was
4:06
in two thousand and eight, it was so bad and it never happened.
4:11
It happened for yes, in the Great Depression. That's why we were convinced
4:14
when you and I started tired, we're heading for the Great Depression. And
4:16
we still are, all right, But we didn't expect Kiue to come in
4:20
quie brilliance of dollars on the books of central banks. They had never had
4:28
a negative balance of their books, all right, on the books at central
4:30
banks and flooded markets with money. Now, what what did that do?
4:36
In two thousand and eight? The money because of the way it's issued in
4:42
a credit, and what we call capitalism, it goes first, It goes
4:45
only to the people who are worried the credit to the banks, not to
4:49
you and me to the hey. So the banks got basically zero percent interest
4:57
on their money all right out. The hate was they that money would go
5:01
out and vivify and restore the economy. We start buying and selling. Well
5:05
until that, we all need to cheap credit. But the banks, because
5:09
they take it says massive hits to the balances. They weren't going to let
5:13
that credit go for cheap. They arbitraged it, all right. They were
5:16
in a crisis. They knew their customers were in a less financial stable position
5:21
now than they were before the crash. And when you're in that position,
5:27
they're not going to cut you. When they slack, you're now more risks.
5:30
Before they looked at you as a cash cow. Now you made need
5:34
a cash cow. But you're wheezy, okay, I mean you know what
5:40
so much today? All right, your interest rate starts going up. So
5:44
that's what they did, and ever since then they kept trying to raise the
5:48
interest rights and the cow kept falling down. They were never able to normalize
5:54
the interest rates, all right, and what happened is they've really tried to
5:59
start it in twenty sixty because they cheap interest rates. Is like steroids.
6:04
It works for a while. We all know somebody who was in the hospital
6:10
who had problems with this or that, and you gotta eat the steroids.
6:13
But we all know that they know that. Continued steroids it's skill killer.
6:18
So what they Central backs have done since two thousand and eight is continually tried
6:23
to raise the interest rates back up, all right, But every time they
6:27
did that, cal started stumbling, all right, and got and laid down
6:30
again. Well, an intervening event happened, and in twenty twenty, COVID
6:36
hit all right. Now, credit debt based economies are are are It's like
6:44
a carburetor in a car. You adjust the ratio between the air and the
6:47
and the gaslink, okay, and to juice it up you either put more
6:53
air. I don't know, but that's that's what is. They put a
6:56
supercharger on it, okay, but you always need to have a flow going
7:00
in or the engine's gonna stop and it's gonna die. Well, what happened
7:06
is is that in twenty twenty, the engine contracted. It didn't slow down.
7:14
The cars didn't start throwing down. You know, when the economy starts
7:16
slowing down and we watch it like the PMI, the contractor, Oh it's
7:20
slowing down, so rolls the story and we get worried. Well, it
7:24
never ever really contracts, except in like a depression. In April of twenty
7:29
twenty, when COVID first hit and everybody figured out eight maybe you got to
7:33
stay over there, all right, the economies all around the world contracted by
7:39
an average of forty five percent. That's unheard of. That's unheard of,
7:44
unheard them. So what they did, and they knew where we're hitted.
7:47
So what they did was they poured so much money in they did killing on
7:53
the level. Everybody got money in Qing, I mean everyone and back.
8:00
Don't give money to anybody. If a banker offers you money, Carrie,
8:05
you should put yourself in the position of a little girl and a stranger coming
8:09
in candy, all right. That banker does not want you to enjoy that
8:13
thing for the reason for the candy bar. It wants you to take it
8:16
because he's got plans, all right. So they poured all this money and
8:22
what because in a capitalist to call it In a banker's economy, money is
8:26
issued in the form of credit. Credit hit the markets in massive amounts.
8:31
A credit immediately turns into debt and I owe you after it's spent. Once
8:35
that credit is triggered, it becomes debt. So what we focused on after
8:41
twenty twenty was the massive amount of credit injected in system. I think somebody
8:45
said seventy percent of the US dollars credits is in seventeen seventy six were issued
8:50
in twenty twenty twenty one. All right, Now this is what three four
8:52
years later that credit has now turned into debt. It's become debt, all
8:56
right, and we're running on gas and fumes as we speak now. Last
9:01
on last Friday, Carry one of the headlines was the markets reached another heighting
9:07
okay, and it said in the last I say two months or quarter,
9:13
there were twenty two record days wreck, twenty two record higher higher that never
9:18
had happened before, all right. And I wrote my little note because I
9:22
you know, I got this web, my website, dr Shoot, okay,
9:26
and I post articles that I think you're pertinent. And I used to
9:28
put my little comments that I know it's just news. I put a copt
9:33
in on that article for the first time in like two years. And my
9:37
comment was its brightest before the crash. You know, were you used to
9:41
It's darkest before the dawn. They give us, Oh, the ft site
9:43
is and just as true is it's its brightest before the crash. Well,
9:48
the next Monday it started fallowing. And the last two days, as if
9:52
yesterday the Dallas following over seven hundred points in two days. Okay, we
9:56
were reaching that point. And this is because the tsunami of credit has turned
10:03
into a tidal wave of debt and and and you know, carry I was
10:07
thinking about what I was gonna say today, and I know that people think,
10:11
oh, this can happen what we call her black swans, you know,
10:13
like an in dodgenocy, that where the system itself internally breaks down,
10:18
like you know, the repot markets or something like that, or an exogen
10:20
is the bit like a war, okay, can cause the event. What
10:24
I did, the critical piece is neither in Dodgenice nor exogen. The critical
10:31
piece that's gonna cause it, defall is a collapse of confidence. Yeah,
10:35
it's a confidence game. And as long as you're confident, you're gonna borrow
10:39
money to buy the house. You're gonna buy the car, and they need
10:41
you to borrow money to buy the house, to buy the car, to
10:43
go to school, to pay you know, to blah blah blah. And
10:46
as soon as you become free, you're gonna pull in your you know,
10:50
your your you know, hey, that vacation doesn't look so good blah blah
10:54
blah. And once it starts thlowing down at the macro level, everything slows
10:58
down. This is why China is in such trouble. China is fascinating because
11:05
they're like the little kid that grew up real fast. Okay, real fast.
11:09
I mean five forty years ago they were they had why is ago?
11:13
Its fifteen years ago? Now you got parches? Okay, now they're like
11:20
us on credit. But they did they It happened so fast because you know,
11:28
you know the West capitalist avenue like two hundred years. In China,
11:33
it happened in forty, all right. And they you think about bubbles,
11:37
The Chinese love real estate, so everything went into real estate. And once
11:41
the bubble pop, the real estate bubble Potent twenty, all of a sudden,
11:46
the Chinese economy started contracting because now they don't trust anything, and no,
11:52
and they shouldn't. I mean, I'm wrong. You should trust things
11:58
when they're expanding, and distrust them when they're contracted. Right, and the
12:03
trick is and the trick is in between. We are we've been in that
12:07
in between area walking fifteen years ago, purgatory, barrel, furatory, Yeah,
12:15
and forwards. Hell, you know, I know a whole bunch of
12:18
people at the top who didn't haven't cashed out of the market yet. What
12:24
they're looking at, Matt, this is closer to Heaven than I've ever been
12:26
true, which is true, But they don't understand they're closer to Hell than
12:31
they've ever been to And the chances of them reaching to heaven are zero compared
12:37
to the chances of then idiot Helle today. That's where we are. Yeah,
12:41
well you know that greed. What did what's his name Bernard Baruch say,
12:46
I got rich letting the other guy make the last ten percent? Yeah,
12:50
that's what you don't know when it turns and every you know, I
12:56
think jan husband said everybody is because of because the spikes have been so huge
13:03
and and and the and the naysayers have been proved wrong so many times that
13:09
if you have a tendency and if you want that last dollar on the table,
13:13
you're it's it's your You're you're front loaded to stay in the game.
13:16
You're front loaded. And and this is just how it is. You know,
13:20
my father lost a huge amount of money in the stock market. You
13:24
know, he was just he was an engineer, and a huge amount of
13:26
money. It was not a huge amount of money, but for him it
13:28
was the huge amount of money because mutual funds got in and my fight was
13:31
very cautious, but there was so much money and mutual funds, and he
13:35
finally got in there, like a whole lot of people did in the sixties.
13:41
He finally got in there, and then the rug gut pulled out,
13:46
you know, And this is what happened in nineteen seventy three, nineteen nineteen
13:52
eighty three, after the drug got pulled out, that now was at seven
13:54
seventy seven. Yeah, what's it now? Threety fights out. So I
13:58
have no idea what it's at. It's you know, I don't watch the
14:01
dance day, but it was that seven hundred and seventy seven. We visited
14:05
the biggest and that's when you know, you know, that's thirty nine and
14:09
thirty nine one three at this right at this moment, Daryl, Wow,
14:15
thirteen point today, Yeah, from seven seven seven. And what they've what
14:18
they've done, Carrie, because so much depends on it. They they they
14:24
pushed the side gold because they knew gold. In the nineteen eighties, gold
14:28
went from thirty five dollars announced to what six hundred and fifty in nine years?
14:33
That's huge in nine years, Okay, huge, And they knew that.
14:39
And they saw it was like it was like they were watching a crystal
14:43
ball and they thought, holy smokes, we're back again. People now know,
14:46
people know gold is like a barometer of systemic distress. And they knew
14:52
gold the price of gold, if it went up, people get worried and
14:58
cold mine. They got what the pricy gon go. So what they did
15:01
is he started beating it down. And now when when when when? You
15:05
know, in two thousand and eight, when the collapse happened, when the
15:07
first financial collapse happened, right, gold started skyrocketing. The big boys got
15:13
the Bank of They got Switzerland to sell twenty two tons of gold directly into
15:20
the market in the spring of two thousand and note directly, and it shoved
15:26
gold down. So now in twenty and twenty four nobody accepted. All true
15:33
believers in goal still believe that gold is going to be the last man's standing,
15:37
right, and it is. I mean I believe it, You believe
15:41
it, yeah, But everybody else out there, the boys. Okay,
15:45
So what about bitcoin. My feeling is like the embracing of bitcoin by all
15:50
the institutions is just to throw more down. Now, throw more money may
15:56
from gold into cryptos. Right, Hey, this is what that is.
16:00
They're the equivalent of my father in the nineteen sixties institutions I call institutional money.
16:08
The slow boys. Okay. Wall Street is a dance between the fast
16:14
boys and the slow boys. Now Boo wins the dance. The people who
16:19
call them the dance in the first place, the fast boys, all right,
16:23
The fast boys need the slow boys at the dance. Yeah, all
16:29
right, So they do everything to get them in. Now what do they
16:33
sell the slow boys debt? They sell them the exhaust off of their fumes
16:38
io us all right. So the slow boys have government io used all right,
16:45
uh, every you know, corporate io us. Then in two thousand
16:51
and they got bundled us of subpride walls. They even got that shut down.
16:56
They throw because the other ones weren't in any tape. But that's who
16:59
it is. The slow boys are now sitting there, they've lost so much
17:03
money up and down. They're they're going to bitcoin, you know, the
17:07
fast boys. Now the fast boys have an ETF. They can sell the
17:11
goddamn ship to the poor slow points. And the slow boys go, yeah,
17:17
look it went up. It went up and up because they're really conservative,
17:19
and all they gotta do is say, hey, Bill, this stuff
17:22
was worth less than a penny two thousand and nine, and now we'll look
17:26
what it's work. Don't don't don't think that it's lost twenty grand yesterday,
17:29
think that it's gone up eighty grands as it started. And Bill goes,
17:33
yeah, you're right, as they hand him another bottle of Jaffa and pitch
17:37
him, you know, another pench in funt And that's what's happening. They're
17:40
in it. They're in it. Yeah, yeah, well it's quite a
17:42
pickle we're in. Huh. Well, I just thought, here we are,
17:47
Gary talking the week after Easter. Yeah, what a great time that
17:52
And it's but it's true, you and I have been talking about this is
17:56
two thousand. I mean he's for fourteen years. We watched it and and
18:00
and and the question has always been on your nath said, how long is
18:03
this gonna go? When's it gonna crash? Because, like I told you
18:07
before, once you see there's a structural structural flaw, and you're and your
18:15
you and I are like monetary engineers, all right. We we study money,
18:21
all right. The other people study what money builds, all right.
18:26
We study money and once you see a structural flaw, you go, oh,
18:30
he smokes, what your building is gonna crape? All right, So
18:37
we've been fixated on the effect of the flaw. Everybody else is going,
18:41
man, this stuff, look with you then do with that. And we
18:45
watch them go, wow, look what it's gonna do to you, And
18:48
they don't listen to us, you know, and we know why. It's
18:52
the drag economy, right, Oh man, this is what it is.
18:56
So you know I I you know, I told my friend Marshall he like
19:03
to be he likes to be optimistic. I said. He thought this was
19:06
really bunny. I said, someday, Marshall, we're gonna, oh chicken,
19:10
little an apology. Yeah, you know, little is going to be
19:15
right. Someday the sky now eventually five, eventually, the end of the
19:19
road is going to come. You can kick the can all you want,
19:23
but the end of the road is going to come. You know. One
19:26
of my sayings I wrote long fib Ago was we borrowed from tomorrow and guess
19:32
what. Tomorrow's here, Tomorrow's here. Yeah, well you remember that song.
19:36
It was a theme song from a movie in the sixties. Let's forget
19:40
about tomorrow. Tomorrow never comes. That's about del Monte. It was an
19:45
Italian I think Gina Lola Bridget. It isn't. Oh, we gotta bring
19:51
that one back and put that and do it do do a fake a fake
19:56
ad for Goldman sachs oh, JP morton tomorrow. Let's forget about tomorrow.
20:02
Tomorrow ever up? And Frank Sinatra sag it too. Oh god, it's
20:07
yeah, it's it's it's it's it's it's the It's the hope of the desperate.
20:14
Yeah, yeah, you remember that movie. You know, I think
20:17
Genoalla Bridget who was in it. But but you can't forget Ginolo Bridget.
20:21
Yeah, definitely. Hey, so uh uh ai, how does Ai fit
20:27
into all of this sterile and what's your take on it? Oh? No,
20:32
I thought about it, okay AYI is the last bubble one of the
20:38
It is a bubble, okay, And it doesn't It's not that it doesn't
20:41
have value, but it doesn't have the value that I think it has.
20:47
Okay. They they think that AI is going to give them answers that they
20:52
don't have. And it's true, it is going to give answers that they
20:57
don't have, but it's not going to give them the answers that they want
21:00
to happen. We don't know if it's lying or not right. Yea,
21:04
even that because all he is is based on our collective on our collective thoughts.
21:10
It's nothing new. They take as much data from the Internet as they
21:14
can. Much chatter, and you and I know some of that chatter is
21:18
true, and ninetynine percent of its bulls. How much chatter out there is
21:23
is devoted to what we're talking about, less than one tenth to one percent,
21:27
minuscule. All the money chatter. If you're gonna go do money chatter,
21:32
it's it's about blah blah blah. And so if you ask AI a
21:34
question about money, it's gonna give you the common a more fuller, in
21:41
depth answer to the common bullshit that's going around. And that's that's AI.
21:49
And these are desperate times. People are looking for answers, and AI is
21:55
the last of the desperate answers in the desperate times. Hey, well,
22:00
maybe we're better off using an eight ball, you know, well you are
22:04
in a sense. I mean, what was it those stock market place the
22:07
joke was it with? And then they had the stock Market Dark Abnosticators,
22:11
and then you had the dark Board. You know, it's a crapshoot,
22:15
Gary, it always has bit that's why, that's why, that's why alcohol
22:21
has always been popular. Yeah. That song Let's Forget About Tomorrow was from
22:27
the movie The Yellow Rolls Royce, which was from the sixties. And I
22:33
actually saw that movie in Radio City with my mother. God knows how many
22:38
years ago. It was a nineteen sixty four film, but I think it
22:44
was there like sixty seven I saw it. But yeah, yeah, you
22:48
remember that title boy for a reason? Yep? All right, So AI
22:53
though, but it is pushing the limits, all right. It's like,
23:00
does godlike creation what it's being portrayed as rare squishing the limits? Right?
23:07
Yes, it is. It is it's it's it is extraordinary, you know,
23:11
my son, in fact, Benjamin, he graduated from MIT in nineteen
23:17
ninety four, and at that time he was thinking of getting it into AI.
23:22
I mean, Marvin Minsky was at MIT. Marvin was Minsky was the
23:26
known as a father artificial intelligence, all right, and he was thinking of
23:33
getting to artificial intelligence. And what I was opposed to AI even then,
23:37
all right, and for philosophical reasons, all right, because all was to
23:44
me and it is is a bunch of thought forms of our humanity, you
23:48
know, jumble together and you roll the dice and you ask the compendium of
23:55
all this past bullshit, speculate what the answer it's just does It's like we're
24:00
looking into a mirror, a more sophisticated mirror, a bigger mirror than we've
24:04
ever looked into before. But it's the same mirror, and it's it was
24:08
narcissist, narciss whoever's they with the guy? No different? Yeah, we've
24:14
just you know, we've got a new mirror. We've got ANYI is the
24:17
latest mirror with a very high tech, fancy frame around, and we're still
24:22
looking to our fucking reflections thinking it's going to get something that we that that
24:29
we're looking for. And did you see that demo of the AI robot like
24:37
picking up an apple and guy says, I'm hungry, give me some food,
24:41
and the thing looks around, picks up an apple and hands it to
24:44
him. Uh, I'll find that. I'll put it in the show notes.
24:48
It's amazing, you know. It says, hey, put these things,
24:52
uh, you know, put these things away, and it puts all
24:55
this stuff in in the trade in a dry rack. You know, it's
25:00
it's spectacular. Yeah. No, if you know what it does, it
25:06
mimics us. You know, we're fascinated that we can get machines to sort
25:11
of act like us. I mean, that's fascinating and carry look at who
25:17
we are, look at what we've done in the planet. I mean,
25:21
and that's the scary part. If you've got machines like us, except who
25:26
aren't even alive, and we've destroyed the planet already, what are they gonna
25:33
do, you know, gonna make it worse? And they take so Yeah,
25:41
I mean, you know, everybody was fixating on Frakistar. I think
25:44
we should have gotten a psychological readout of the professor who made him up.
25:48
We should do a story of his wish. You know, let's do his
25:51
bio what caused it to do that? All right, Carold, it's been
25:55
great speaking with Dr Shannon sc h O and oh I. That's where you
26:00
find Daryl's postings, and make sure you sign up at our site, Financial
26:07
Survival Network breed newsletter going out shortly. Daryl, always a pleasure. Thanks
26:12
for stopping by, Keep bye, keeping on, Thanks for listening to carry
26:15
Lenz's Financial Survival Network, your solution to today's trying times. For the latest,
26:22
go to Financial Survivalnetwork dot com. Financial Survival Network now more than ever,