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  • You did some research into money, I think when you were coming around to finally understand this and I think you did go back to 5500 years, you looked at gold, you looked at ledgers and then you looked at the dollar and you looked at what happened post pandemic and you said, ok, Now I really see this disconnect, can you explain some of the things that you learned and then talk about the dollar?

  • And I had my 17 year old daughter Gabriella in here two weeks ago.

  • Um and we had a conversation that we were having at home and she didn't know any crypto and and she was saying, how can they keep printing money and asking all of these amazing questions that, you know, only a teenager or a kid would ask um that we all should be asking.

  • Um tell me your view on money after you did that research.

  • Well, I mean, I say, let's say a couple broad things first, you know, and I would recommend Professor Ferguson's book the ascent of money Neil Ferguson.

  • You can also watch the PBS documentary that's available in most places now, which just describes what money has actually been to civilization.

  • And so not to bore people, but all it is, is a technology.

  • It's a tool that we're using in exchange uh instead of bartering with each other.

  • And so uh we use seashells, wampum grain.

  • We had gold coins or silver coins stamped with roman emperors profiles on them or the leader of the day.

  • And we've had that constant transference into that technology of what we perceive to be value.

  • But one axiomatic fact of money, it's never worth what the goods and services are that were trading for.

  • You know I have a piece of fabric.

  • Uh It's not paper money.

  • It's actually made out of cotton and linen at least in the United States.

  • And that piece of fabric painted green, just a piece of paper.

  • But yet it has symbols on it and it's a totem that we trust with each other.

  • So the second axiomatic fact is it has to be a trusted network.

  • I have $100 bill.

  • I can go to the pizzeria with that piece of fabric.

  • They'll take it from me because they know they can give it to another person who will accept that fabric for goods and services or for the labor to make the pizza and and and so on and so forth.

  • Or think about electronically if I like a G wagon and I want to wire electronically money from my ledger and electronically spits out to the other person's bank account of the Mercedes Benz dealership.

  • 200,000 of those later the G wagon shows up in my driveway.

  • What are those things, were there just electronic bits But what Professor Ferguson would say is there a network, there are trusted network and we trusted and it's been based on and backed by the government and so therefore we trust it.

  • And so what has happened unfortunately throughout history is that the money gets corrupted.

  • Because what governments have a tendency to do is they have a tendency to create more volume of it.

  • And the volume will actually solve short term solutions or the volume will actually induce more exports.

  • You know, you you may remember from your 11th grade european history course on mercantilism, you know, if you're lowering your currency or devaluing their currency, you can send exports through the roof.

  • And so John Maynard Keynes in 1944 when they sat at Bretton Woods and they were resetting the currency table and they were resetting the idea of global trade.

  • Uh professor Kane's actually wanted a single currency all the other industrial nations pushed back.

  • But his point was a single currency will keep us all honest, we won't be able to manipulate our respective currencies and it'll help global trade.

  • But more importantly it will help middle and lower middle income people because you said that the bank is a part of our life but you know, it's also become part of our life, brian is the central bank.

  • Anybody that owns dollar denominated assets or pound denominated assets has been taxed by their neighborly central banker because they produced so much more money Over the last 13 years, let's just go over the last year in the United States, the M2 supply of money, the supply of dollars has increased 37% Since April of 2020.

  • In the first five months of 2021.

  • We electronically created $469 billion $10,000 in your bank account, Well, it only has $9200 worth of purchasing power today, Relative to what it had a year ago.

  • And so we have to understand that and that's stealing our time, that's stealing our energy.

  • Now, if we own assets were well protected, you know, Calvin Klein, uh the fashion designer bought his Hamptons real estate, waterfront property for $3.6 million dollars In 1987.

  • He sold it last month for 85 million fiat dollars.

  • And so we crushed that currency.

  • And and so what happened to us is we had very good wages, aspirational living standards for America's middle class and the middle class in Western civilization.

  • But 50 short years ago, in August of 1971, August 15, Richard Nixon said, you know, we can't pay back our deficits.

  • People want our gold, the dollar was tied to gold, it was $35 per ounce of gold.

  • And so what Richard Nixon said is that we can't do that anymore.

  • So we're just gonna let our currency float freely.

  • And it had this huge disruptive effect in global commerce.

  • It caused massive inflation in the 1970s.

  • That you know, inflation was subsequently tamed by our federal reserve and emerging technologies that brought down prices but it corrupted the money.

  • And so let's just go through the math $35 an ounce.

  • In 1971, it's $1700 announced today.

  • We took our money down about 98%.

  • So to put it in real world terms to American dollars has the purchasing power of $100 American today.

  • Uh And that is damaging, it's damaging to the middle class, damaging the lower middle class.

  • It may help us in the short term, but it has very long term deleterious side effects.

  • And so incomes Natasha Nagamoto or the group known as Natasha Nakamoto.

  • We started this process Aggressively in the 2008 financial crisis.

  • He said, well listen if we're going to corrupt the money like this, we have to use our technology to create money that can actually offer a standard for the world or some type of stability to long term value.

  • And he basically said if if you if you understand what I'm saying, then you'll recognize that we can create this ledger through mathematical properties and if I'm right and people start to accept it, well then the The coin, the Bitcoin or that currency will start to rise in value because it will start to make sense that that will be the currency that we use in terms of the transfer of goods and services.

  • So so listen uh if you look at in 2009 so that's hard to believe it's worthless is just an electronic cryptographic.

  • You look at it in 2014 say whoa People are adopting it.

  • They're starting to recognize that it could be real.

  • And then of course last year when I got to 100 million users I turned to my team said that's escape velocity for me Now.

  • The good news for everybody listening, we are still early.

  • The best time to have bought Bitcoin was 11 years ago.

  • The second best time to buy bitcoins right now.

  • Okay, so we're incredibly early.

  • We only have 2.5 fish percent saturation in the world.

  • There's about 180 million wallets for Bitcoin today.

  • Uh If Cathy Wood is correct, it will go to A billion wallets by the end of 2025 I believe that's the case.

  • Uh And if that's the case, given the scarcity of Bitcoin, these coins will be worth several $100,000 a coin.

  • Uh and I think it's important for people to have some of them in their portfolio.

  • Now of course if I'm 100% wrong, I tell clients, let's have a small piece.

  • If I'm right, you're going to be well rewarded.

  • And if I'm wrong, it won't be enough to hurt you.

  • But I think we're going that way.

  • So you have two things happening at once an improvement in our currency through technology and the destruction of the old system, born from the capricious nature of our policymakers and our politicians.

  • So those those simultaneous interactions are creating a ripe environment for this type of technology to emerge.

You did some research into money, I think when you were coming around to finally understand this and I think you did go back to 5500 years, you looked at gold, you looked at ledgers and then you looked at the dollar and you looked at what happened post pandemic and you said, ok, Now I really see this disconnect, can you explain some of the things that you learned and then talk about the dollar?

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The Ascent of Money ? Anthony Scaramucci on How We Are Corrupting The Money

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    林宜悉 posted on 2021/09/15
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