Latest / Simply Bitcoin / Feds $1,000 Retirement Account Stimulus! | Bitcoin Simply

Transcript

Feds $1,000 Retirement Account Stimulus! | Bitcoin Simply · Simply Bitcoin

• 0:00
  The United States government just announced the Trump
• 0:02
  accounts, where they're going to contribute $1000 to every
• 0:05
  newborn's account tax deferred in the name of capitalism, but
• 0:08
  they're just printing money out of thin air.
• 0:11
  Here is how the accounts work for every U.S. citizen born
• 0:15
  after December 31st, 2024. Before January 1st, 2029, the
• 0:21
  federal government will make a one time contribution of $1000
• 0:26
  into a tax deferred account that will track the overall stock
• 0:30
  market. Today, we're going to uncover
• 0:32
  what that actually means and how this is nothing new.
• 0:34
  They're printing money out of thin air.
• 0:36
  They're picking winners and losers.
• 0:38
  And inevitably, when you have more debt than your GDP growth,
• 0:42
  well, there's collapse. I'm on the road right now, but
• 0:45
  we're still going to bring you some alpha.
• 0:47
  This is Dante Cook with Bitcoin. Simply, let's go.
• 1:14
  yours for five. If home prices keep falling in
• 1:20
  Bitcoin, why do they keep rising in dollars?
• 1:26
  I wonder why Coinbase keeps coming out with commercials like
• 1:29
  these. Well, it's because
• 1:30
  unfortunately, unaffordability is a common experience in
• 1:34
  America. People are working more, earning
• 1:36
  less, having less spending power, and the main culprit of
• 1:39
  this is inflation of the money supply.
• 1:41
  And when the money supply is inflated, all goods, services,
• 1:44
  and products downstream are also inflated.
• 1:47
  It's pretty simple. Here's a great video from
• 1:49
  Bitcoin Teddy that shows us just how dumb the government thinks
• 1:53
  we actually are about the effects of inflation on our
• 1:55
  economy. For the general public, for
• 1:58
  those working families of people, why 2%?
• 2:00
  Why is getting it to 2% so important?
• 2:03
  So that's that has become the globally agreed essentially all
• 2:07
  major central banks target 2% inflation in one form or another
• 2:12
  and. How?
• 2:13
  Does that help my Nevada families?
• 2:14
  How does that help people? I'll.
• 2:15
  Tell you how it does and it it it's, I guess it's.
• 2:19
  It's obviously not, it's not obvious how that is, but what 2%
• 2:24
  inflation to have people believe that inflation is going to go
• 2:27
  back to 2% really anchors inflation there because, you
• 2:30
  know, the evidence is, is, and, and the, the modern belief is
• 2:34
  that people's expectations about inflation actually have a real
• 2:37
  an effect on inflation. If you expect inflation to go up
• 2:41
  5%, then it will, you know, if everyone kind of expects that
• 2:44
  because that's what businesses and households will be expecting
• 2:47
  and, and it'll kind of happen because they expect it so.
• 2:50
  The printing of money is corrupting the very fabric of
• 2:52
  society as a whole. Some people are praising the new
• 2:55
  Trump account plan where they're going to contribute $1000 to
• 2:58
  every newborn after 2024 to 2029 and a tax deferred account,
• 3:03
  which they call private property.
• 3:05
  But let's call it what it really is, money printing.
• 3:07
  Here is how the accounts work. For every U.S. citizen born
• 3:12
  after December 31st, 2024, before January 1st, 2029, the
• 3:18
  federal government will make a one time contribution of $1000
• 3:23
  into a tax deferred account that will track the overall stock
• 3:27
  market. In other words, it'll be pegged
• 3:29
  to an index that will pick right, Michael, we'll pick it.
• 3:32
  We'll pick a good one. Maybe you should be the index.
• 3:35
  I'd like to have that these these kids would be very wealthy
• 3:38
  if that were the case. That would be good.
• 3:40
  I think we might do that. Michael Dell.
• 3:42
  These accounts will be private property controlled by the Giles
• 3:47
  Guardians, and in many cases those guardians will be the
• 3:50
  parents. We think probably the parents
• 3:52
  will be the guardian guardians. They'll be open for additional
• 3:55
  private contributions each year from family, friends, parents,
• 3:58
  employers, churches, private foundations and more.
• 4:02
  Is a pro family initiative that will help millions of Americans
• 4:05
  harness the strength of our economy to lift up the next
• 4:08
  generation. And they'll really be getting a
• 4:10
  big jump on life, especially if we get a little bit lucky with
• 4:15
  some of the numbers and the economies into the future.
• 4:19
  In addition to the substantial financial benefits of investing
• 4:22
  early in life, extensive research shows that children
• 4:26
  with savings accounts are more likely to graduate high school
• 4:29
  and college by a home, start a business, and are less likely to
• 4:34
  be incarcerated. Trump accounts will contribute
• 4:38
  to the lifelong success of millions of newborn babies.
• 4:42
  They'll are fully, and this will be very interesting, I think,
• 4:45
  for everybody to hear. They are fully funded through
• 4:48
  targeted reforms in the one big beautiful bill, like the $1.7
• 4:52
  trillion in mandatory savings, welfare reforms to stop waste
• 4:57
  and fraud, a 3.5% remittance tax and more.
• 5:02
  OK, Couple problems with this question #1 where is the money
• 5:05
  coming from? Question #2 if it's going to be
• 5:08
  going into the S&P 500, well then aren't they just continuing
• 5:12
  to exacerbate the high prices and how valuations that we have
• 5:16
  on these companies already? Or if it's not going to go in
• 5:19
  the index itself? Well, it means that it's going
• 5:21
  to have to be custody with a certain bank or provider or
• 5:24
  custodian, meaning that the rich, the bankers, are going to
• 5:27
  continue to get richer. They're going to earn fees now
• 5:30
  on that money and in perpetuity. They're going to start to lend
• 5:33
  out that $1000 that was created out of thin air and do what we
• 5:36
  all know as a fractional reserve banking.
• 5:38
  But this inevitably leads to the same outcome that we've seen
• 5:42
  everywhere, everywhere in the world.
• 5:44
  And one of the greatest podcast intros ever, Larry Leopard, is
• 5:48
  doing a series with Cypherpunked where they're going through the
• 5:51
  big print episode by episode. Here he talks about the impacts
• 5:55
  of what happens when deer are allowed to run free with no
• 5:59
  consequences during. World War Two, we had men
• 6:01
  stationed on some islands outside of Alaska, and they were
• 6:03
  there to keep an eye on the Russians, basically, and they
• 6:06
  were resupplied. They were on a remote island and
• 6:07
  they were resupplied by boats. Somebody realized that maybe if
• 6:10
  the weather was bad, the boats wouldn't get there and the
• 6:12
  resupply wouldn't occur and they'd run out of food.
• 6:14
  And so somebody else said, well, let's let's put some reindeer on
• 6:16
  the island. The reindeer will reproduce and
• 6:19
  if the boats are unable to get there with the food that the
• 6:21
  soldiers can slaughter the reindeer and eat the reindeer
• 6:23
  meat. And that was fine.
• 6:24
  And, and the war ended and we left.
• 6:26
  And at the time, you know, there were a couple 100 reindeer
• 6:28
  hanging around and the reindeer didn't have any natural
• 6:31
  predators. There were no wolves or anything
• 6:32
  to kill them. And what they did was they ate
• 6:34
  the the the Moss and the lichen that grew on the island and that
• 6:38
  kept them alive well. Over time, they reproduced as
• 6:41
  reindeer will. And the number of reindeer grew
• 6:43
  steadily from starting at 22 up to 6000 reindeer in the early
• 6:47
  1960s. And then at that point in time,
• 6:51
  the food that was there just did not support the reindeer that
• 6:54
  were there. And they had a very bad winter
• 6:55
  and a lot of the legend got covered up and they all died
• 6:59
  within the space of a year. The head count went from 6000
• 7:02
  reindeer to 42 reindeer. It's.
• 7:04
  A very sad story for the reindeer, obviously, but the
• 7:06
  point being that what what happened there is they
• 7:09
  outstripped their resources. They outgrew their resources.
• 7:11
  And you know, if the reindeer had had productivity enhancing
• 7:14
  developments where they could have, you know, grown lichen
• 7:17
  artificially inside of greenhouses and of course they
• 7:19
  might have been able to support 12,000 reindeer, who knows?
• 7:21
  But but they reached the point at which the carrying capacity
• 7:24
  exceeded the system. And that's the point.
• 7:26
  If you take Keynesianism to its natural extension of just growth
• 7:29
  at any cost, eventually you're going to outgrow your ability to
• 7:33
  supply yourself. And in fact, it actually applies
• 7:35
  to debt Stein's law, which says that if something can't go on
• 7:39
  forever, it will end. And what's been going on forever
• 7:43
  is that debt has been growing and it's been growing at a
• 7:46
  faster rate than GDP. And the GDP when you take on
• 7:50
  debt, you have to pay interest and then in 3rd you pay the
• 7:53
  principal back or you roll it over.
• 7:54
  The GDP is what you use to do that with because you have to
• 7:57
  earn money to pay the interest. And if if the GDP does not grow
• 8:01
  at the same rate that the debt grows at, eventually you
• 8:04
  outstrip your ability to pay the interest and the debt either
• 8:07
  fails or you need to heavily inflate PDP in order to catch
• 8:12
  up. If something cannot go on
• 8:13
  forever, it will end. The thing that we all need in
• 8:19
  this society right now is sound money.
• 8:21
  And if you have sound money versus corrupted money, well,
• 8:24
  wouldn't you want to hold on to that and sell the corrupted
• 8:26
  money? Well, you can do that exactly by
• 8:28
  working with Lenin, the leader in Bitcoin Back Loans, which
• 8:31
  allows you to unlock liquidity in your Bitcoin without selling
• 8:33
  your Bitcoin. Lenin has issued over $9 billion
• 8:36
  worth of loans to 10s of thousands of customers since
• 8:38
  2018 and I've done so in a fast, simple and transparent manner,
• 8:42
  which is why they have over 1005 star customer reviews and I've
• 8:45
  never lost a single cent or set of customer money.
• 8:48
  Loans started just 12.4%. But for the people that go to
• 8:51
  learn dot letting dot AO slash simply, well, you can get .25%
• 8:55
  off your first loan. The other thing about Bitcoin
• 8:57
  and how it's different from other stocks or other things is
• 9:00
  that you don't have to trust anyone.
• 9:02
  You can trust yourself and you can trust the protocol, but how
• 9:06
  you do that confidently, intelligently, privately and
• 9:09
  securely, well, that's a whole nother matter entirely, which is
• 9:12
  why we partner with the Bitcoin way, which will help you to
• 9:14
  protect your generational wealth the right way.
• 9:17
  Remove it completely from the system, but you can have
• 9:19
  confidence that your keys and your Bitcoin are actually there.
• 9:23
  Schedule a free 30 minute consultation with their team and
• 9:25
  they'll walk you through how to do this step by step so that
• 9:28
  you're prepared when the eventual rug pull on the banking
• 9:31
  system happens. Go to thebitcoinway.com/simply
• 9:34
  Bitcoin. So going back to the Trump
• 9:35
  account idea, what if $1000 wasn't just invested into the
• 9:39
  S&P 500, but a small portion of that went into not just the Mag
• 9:43
  7, but the Beautiful 8? You have something in your
• 9:47
  terminology the. Beautiful 8.
• 9:48
  What does that mean for Bitcoin investors?
• 9:52
  Yeah, so I think one of the reasons why Bitcoin could
• 9:54
  actually reach $300,000 a coin is given the fact that everybody
• 9:58
  has exposure to the Magnificent 7, right?
• 10:01
  So that's Apple, Microsoft, Google, they have 1 to 2% of
• 10:04
  their portfolios. And that one great way to
• 10:07
  diversify your Magnificent 7 exposure, which is a high
• 10:11
  concentration in equity portfolios, is to make it into
• 10:14
  the Beautiful 8, add Bitcoin exposure.
• 10:18
  And so we, you know, on the portfolio Manager 2 products,
• 10:21
  Bitty and Baggy ETFs and what those do is actually monetize
• 10:25
  Bitcoins volatility. So we see Bitcoin is volatile
• 10:28
  today. It's historically has been
• 10:29
  volatile. We sell calls yet on a weekly
• 10:33
  basis and you can get 5% upside. So we think you could take your
• 10:36
  Mac 7 and make it into a Beautiful 8 portfolio because it
• 10:40
  has, you know, traditionally Bitcoin has participated when
• 10:44
  NASDAQ 100 has run up and has had some correlation.
• 10:48
  Now it's decoupled at times, but you've already got volatility
• 10:51
  with the Magnificent 7. Why not diversify that into the
• 10:54
  Beautiful 8? And it's not subject to tariffs,
• 10:57
  it's not subject to corporate earnings.
• 10:59
  You know, it's a, it's an uncorrelated, idiosyncratic type
• 11:04
  of asset that could turn that mag 7 into a beautiful aid and
• 11:08
  you can monetize it by selling calls or getting access via
• 11:11
  video or baggy ETF's I. See, Bitcoin is an uncorrelated,
• 11:16
  idiosyncratic asset class that is separate and opposite of all
• 11:20
  of these. So meaning that they zig when
• 11:22
  the others zag. And this is good for your
• 11:24
  portfolio, but this is also good for your sovereignty.
• 11:27
  BlackRock has been saying this for the last two years, and it's
• 11:30
  why the ibit ETF has reached $70 billion in assets, which is the
• 11:34
  fastest ever, far outpacing gold.
• 11:37
  Their team believes that this is just the beginning.
• 11:39
  When it comes to adoption by wealth advisors, I'm curious how
• 11:42
  far along you think we are in that?
• 11:44
  Are we in the early innings? Are we in the middle innings?
• 11:46
  Are we, you know, I, I don't think we're in the 8th or 9th
• 11:48
  inning, but you know, where would you put it at?
• 11:50
  Very early. I think that what we've seen is
• 11:54
  a concerted effort by most of the largest firms to progress
• 11:58
  through their diligence and their research and their
• 12:00
  approval process. And we do too.
• 12:03
  Bitcoin is superior not just the gold and ETF flows, but in every
• 12:07
  single way of the asset class entirely.
• 12:09
  It will become the dominant store of value for the 21st
• 12:12
  century, and every other financial asset will be
• 12:15
  correlated to Bitcoin like gravity.
• 12:17
  I see a world where there are many types of assets, but the
• 12:21
  king apex asset, the root asset which everything else is settled
• 12:26
  on or everything else is, is oriented to the centre of
• 12:32
  gravity of the financial universe of the 21st century.
• 12:35
  Emerging is Bitcoin, just like sorry, that falls toward the
• 12:44
  center of gravity, which is the middle of the Earth, and none of
• 12:47
  you have been there. That doesn't mean that it
• 12:52
  doesn't control everybody, right?
• 12:55
  Everything will be oriented in a frame of reference.
• 13:00
  Whenever you see a headline about a Trump account and these
• 13:03
  sorts of things where there's new stimulus or new money being
• 13:06
  created, don't just think about the positive things.
• 13:09
  Think about the detrimental things, why you're working
• 13:11
  harder, why these houses cost more.
• 13:14
  What's going to happen when all of this new money enters into
• 13:16
  the system? Well, that means that Americans
• 13:19
  and their family and their children are going to have more
• 13:20
  spending power for fewer and fewer goods, meaning that the
• 13:24
  prices of all of these things will continue to increase.
• 13:27
  It's the same game over and over again.
• 13:29
  But what happens if eventually is that when you continue to
• 13:32
  create more debt than your growth in GDP?
• 13:34
  Like Larry Laparte said earlier in the episode, while the
• 13:37
  outcomes are inevitable, it happens in every financial
• 13:40
  system, in every currency since the beginning of time.
• 13:43
  Bitcoin is outside of the system, and the winners and
• 13:46
  losers of the system aren't picked.
• 13:48
  They get to voluntarily opt in and choose whether they want to
• 13:51
  win or not. The winners in the Bitcoin
• 13:52
  system are just addresses, and I hope one of those addresses is
• 13:55
  yours. One of the ways you can continue
• 13:57
  to invest in your Bitcoin journey is by learning about all
• 14:00
  all of the facets of Bitcoin, not just lightning and payments,
• 14:03
  maybe at a Steak and Shake or a store value in macro economy,
• 14:07
  but the Bitcoin mining network. How does it work?
• 14:09
  How does it protect the Bitcoin protocol?
• 14:12
  How are we adding new blocks to the blockchain?
• 14:15
  How do these machines work? What about the supply chain?
• 14:17
  What about the pool centralization?
• 14:19
  All of these things you can learn in more at the Mining
• 14:22
  Disrupt conference in Dallas, TX from November 11th through
• 14:25
  November 13th. Get 20% off your tickets by
• 14:28
  using the promo code Simply Bitcoin.
• 14:30
  Thanks for hanging out with me on the road.
• 14:32
  Till next time, this is Dante Cook with Bitcoin.
• 14:34
  Simply Happy stacking.