Hello, and welcome to another episode of the Mark Maas Show, where we're always talking about the decentralized revolution deglobalization.
If you don't know what that means. The world is.
Changing and we can see it changing everywhere. And I have a big show for you today so you can understand what's going on and more importantly, where we're going. And I want to talk about something that every government, every empire makes a mistake, they make at the end every single time. I want to break this down so you know what's coming, the dangers of this, and of course what we can do to counteract this. And so I want to talk about Biden's price controls backfiring and
why they always fail. So we're going to cover the Biden administration's latest attempt at price controls. We're going to look back at failed attempts by governments to set price controls. I want to dive down deep into a moment in recent history when another country attempted the very same price controls that the Biden administration is imposing. And then I'm going to help set expectations in our current market environment to let you know what I think is about to
happen and what we're gonna do about it. So We've got a lot to cover in this episode. I'm excited about this one, so make sure you.
Tune in the whole time. Now, if you have to leave early, don't worry. I got your back.
Just check me out on the podcast. Just search the Mark Mall Show on your favorite podcast player, or you can go to YouTube and go to the Market Disruptors YouTube channel where you can watch me and listen to me at the same time. Now, one thing, just real quick, please, if I can ask a small favor if you're listening on the podcast app, if you can just like and review the show, that means the world to me.
More people would.
See the show and I'd be much appreciated there. All right, So we're talking about, like I said, the inevitable, and it's inevitable because all throughout history, every government basically runs the same pattern. It's been documented a couple of times. There's uh, there's research on the average empire and the average democracy, which both interestingly run about a two hundred and fifty year time span. On the empires, they run it through like a six cycles. Democracy runs at eight cycles.
But they're both about the same and it's something sort of like in the first stage, you have the eruption or the frenzy, and so you know, after a revolution comes this eruption, this frenzy. There's this new energy, this excitement. There's this birth of this new country or civilization or whatever it is at the time. So you have that next after that eruption, that frenzy, that excitement happens, then we start to have the growth. So then we start
to have sort of the commercial growth happening there. So we're starting to see businesses sprouting up, growing, We're starting to see productivity things like that. Then that leads to wealth and influence because now we're creating, we're producing, we're providing value, we're exchanging, we have specialization of trade, and we have prosperity. But after that then we go to the age of like intellectualism. And so after you've taken care of your base needs, you have the money, you
turn towards other things that are non economically driven. And so those typically go into like I said, you know, education, arts and things like that. And so we can certainly if you're listening along, if you're playing along, you can just see how the United.
States has kind of fallen through this.
And so then you kind of this age of intellectualism and this rise of these this technocrossy, which is, you know, these experts that want to tell you what to do. And then we go into what's known as the age of like speculation and sort of waste and gambling. Right, and so when you saw last year, about two years ago, there was you know, sixty eight million dollars for a JPEG piece of art from people, or there was an
eighteen million dollar piece of invisible art. I don't even know if they got they got delivery of it or not. Maybe they got scammed because it's invisible.
They don't know. You know, you see you know, three hundred.
Five hundred million dollar yachts, five hundred million dollars houses and condos. I mean, it's insane we have that. Then we go into this age of dependence where people then become dependent on the government because they just can't afford to live on their own for whatever reason. Again, this traces back through all of history. You can see in the Roman Empire we had like the bread and circuses where the government had to kind of take care of
the people so they wouldn't revolt. Of course you see this, yes in the United States today, where more and more people are depending on the government. As a matter of fact, we have more people dependent on the government today for housing and food than we did during the Great Depression, and so we have this high level dependence. You know, all this talk today of UBI universal basic income that we need to produce.
And after dependence comes.
Well, like slavery, after you become so dependent you can't leave. Then comes what they actually call bondage. And then you have this period of bondage, which is now the government has total control because you've given them everything, they have total control everything. And after bondage, we finally then have revolution again. All right, So this has been documented very well through thousands of years of history, and it typically
follow about a twohun fifty yar time frame. Now if you're playing along, Yes, the United States was founded about two hundred and fifty years ago, and not just the United.
States, but really even sort of Europe.
I mean we had the French Revolution as well about two hund fifty years ago, and so we're starting to see this developed world starting to go down this path.
Now.
One of the things that's also part of this is as we kind of go from this period of abundance to dependence and then into bondage. Is one of the last things that the governments do in this bondage period, which is having control of everything, is trying to control the flow of money or what.
We call capital controls.
So they want to control how much money is moving in the economy, moving between people.
More specifically, though, they want to control money moving in and out of the economy.
So you can look at China for example, they don't have open capital markets. As a matter of fact, most countries in the world don't. You can hear obviously many stories and maybe you know them if you've been a migrant or immigrant. You know people escaping Russia or Iran or South Africa and having to basically leave all their assets with them. I've done an interview with yan Jan Pittzer. He's the co founder of swan Bitcoin. My good friends at swan biccoin. If you want to pick up bitcoin,
go check them out. But he talks about how his family had to leave Russia and when they had to leave, I want to say, they were only allowed to bring like four hundred dollars was like.
The max they could get out of their bank account.
Don't fact fact check me on that it was something to that effect, but they could only bring a little bit of money. Growing up as a kid, one of my best friends family had come from South Africa, and coming from South Africa, they had to leave their money in South Africa too.
I did an.
Interview about two weeks ago with Rand Owner on a show called Crypto Banter, and he was talking about how his family he grew up in South Africa, but his family had to leave Iran and when they left, they had to flee for their lives. They were pretty affluent there and they had to they had to flee for their lives. And so they got all the gold that they owned and they melted it down and it went into like a barrel, and they went to the evacuation
site to get on the plane to fly out. And they get to go to the point to get on the plane and the guy you know loading him says, hang on a second, like, you can't bring that barrel of gold. That's not going to go on the airplane. You got two choices. You can either leave it here or you can stay here.
And so they left it there. They had to go.
They d going to South Africa fleeing for their lives where they lived six years in tense. But the point is is that nations will always control the flow of capital, and like I said, and how those thing interact and what we're talking about today is a part of.
This capital controls.
But it's specifically about price controls, all right, So that's specifically what we're talking about, the price control aspect of things. And you can see how it's always there. Now, I want to tell you a story first so you can start to understand how all of these things come about, right, And really it's all summed up in one mental model,
and that is the mental model of unintended consequences. Now, unintended consequences are when you do one thing trying to get one result or affect one outcome, but you get a whole bunch.
Of other variables that popped up.
It's sort of like if you watch mainstream TV, which probably none of you guys are, but if you watch mainstream TV's it's sort of like this dumpster fire of pharmaceutical commercials where especially if you're like watching ESPN or something, it's just like one like prescription med after another. It seems like, and at the end they tell you all
the side effects that they could have. So you have heartburn, you could take this pill for heartburn, but you know it might give you headaches and fevers and sweats and you might die, right, And so those are unin tending consequences. They're trying to fix one thing, like heartburn, but instead they have to warn you that all.
These other things could happen.
But what was interesting about that is, if you remember, I'm sure you do, during the pandemic, you weren't allowed to talk about the vaccine at all.
You could never talk that there could even potentially ever be one side effect of it. Never one.
The reason why this is important is because in a complex system, when you affect, when you try to change one thing, you affect others. Now, I'm going to tell you a story about how this works, and I'm going to talk about price controls, capital controls, and what we're expecting and what we can do about them. But I gotta take a quick break. If you're just tune in,
you're listening to the Mark Mass Show. We're talking about how price controls are at the end of every empire and democracy, and we're seeing the same things and what to do about it. I'll be back with more a minute. Don't go away, all right, Welcome back. If you just
tune in, you're listening to the Mark Maas Show. We're talking about price controls, what happens at the end of an empire, at the end of a country, capital controls, price controls, and how the Biden administration price controls are backfiring, why they always fail, and what we can do about them.
I want to just tell you a story real quick.
Like I said, it was about the law of unintended consequences, and so when we try to change one thing and it has all these other outcomes and effects that we didn't intend on.
So there's a story. It's called the cobra effect.
Now, the cobra effect is a story from India, which has a problem with king cobra snakes and as you're probably aware, king koba snakes are very poisonous. Now, there was a problem and that there was too many of these king cobras and they were affecting the population. It wasn't safe, people were dying, etc. Things like that were happening.
So the Indian government decided they would come up with a plan the plan would be is that what we'll do is we'll incentivize and it always starts with incentives. Will incentivize people to go kill these cobra snakes and bring them to us, and for every snake they turn in that we'll pay them for them.
And so they did.
And so people started, you know, going and killing snakes and bring them. And some people that were a little bit smarter and more ambitious than others decided, hey, here's a good idea. What we'll do is we'll start raising the snakes on our own. We'll start breeding them. So we'll just start set up our cages and we'll raise them.
And they did, and they started raising them by the dozens and the hundreds or however many they were, and then they would bring in boxes at a time and just dump them on the counter and get paid out for it. It didn't take very long for the government to realize that this wasn't exactly what they had intended to happen, and so they said, hey, we're canceling this program altogether.
We're no longer going to pay you for the king cobras.
Well, then all these farms, all these people that were growing the cobras just to sell them to the government are like, well, what the heck are we to do with all these snakes? Then the answer was obviously nothing, so they let them all go. After the program was ended, India ended up with more snakes than they had originally had in the beginning. And that is the law of
on intended consequences. Specifically, when you're working in a complex system like a society and you're creating incentives, people are always going to optimize for those incentives.
Now we can see the same thing.
Happening with price controls because it affects incentives and the law of unintended consequences. And so, as I said, we know that all throughout history it's always this last stage that the government's going to go to is trying to do that. Now we know we have dozens of examples I want to run through with you, but one of them might be, for example, like rent control. Now I live in southern California. I've been investing in southern southern
California real estate for decades. I owned apartment buildings in Los Angeles, and Los Angeles has rent control, so I've had to deal with this before. Now, basically, what they say is that you can't raise your rent anymore. So me as an owner of a building, as a landlord, I can no longer raise my rent, which on the surface sounds pretty good if you think about it only
from a first order effect. Unfortunately for most well unfortunately for us, all of us, and for the world, most people only think through first order effects, but didn't think through what happens to the second order and the third order and the fourth order effects. What we do know is that when they have imposed things like rent control, what we see is that we actually have a shortage of housing. As a matter of fact, every single time we see something like price controls, it leads to shortage
of housing. Now why would that happen, Well, it's pretty simple. There's a couple of things. One, if I move into this cool apartment and I love my location and it's in this trendy area whatever, and I get my rent locked in, I no longer have to worry about the price of inflation. My rents locked in now. Once I'm in there, I don't ever want to let that go.
As a matter of fact, as we can see after study after study after study that once somebody moves into a rent control apartment, they are very unlikely to ever leave, and a lot of times we'll pass that to a friend or a family member if they do want to leave, And so right off the bat, it takes all of this inventory off the market. Typically, in like lower income housing, there's a lot of turnovers, there's always opportunities to move, but in this type of a scenario, it takes all
of that off the market. Another problem with this is that me, being an owner of a building there, I want to keep up with the maintenance on it. If you let the building get too far away, it can become very expensive. So, being the greedy landlord that I am, I want to maximize my profits. In order to maximize my profits because I'm so greedy, I want to keep the building up to date. Now, I would imagine you, if you were a renter, would like to be in
a building that maintenance was up to date. I would imagine that you probably wouldn't want the roof leaking, right, probably wouldn't want the sidewalks crack.
You wouldn't want that.
But see, I wouldn't want that either as an owner, because if I let the ceilings leak, that's going to cause all kinds of other problems that it's going to cost.
Me way more money.
I'm much better off just to fix the roof right now instead of having to deal with the consequence later. But the problem is, if they cap the amount of price I could charge for the rent, I don't have the money to put into the maintenance. And if you know typically what I'd want to do is I'd want to fix it up. I'd want to Hey, let's paint it, Let's give it a new facelift, let's put a new roof on it, let's.
Add a pool.
But in order to add those things, it costs me more money, and so I might need to raise the rent in order to offset that. But if I can't raise the rent, then guess what.
No maintenance.
So now I'm forced to be a slumlord and you're forced to live in squalor.
That's no good.
So one, it takes away inventory. Two it forces things to fall into deterioration. The law of entropy takes over things that are left on their own fall to disorder. Now it's easy to maybe see that in the light of real estate, for example, but one of the things that I was looking at is what the Biden administration put through in what they call the Inflation Reduction Act the IRA. Of course, you know, you hear me talk about this all the time. How insane it is they
call these things. They label these things is like almost the opposite of what they really are. And so somehow, by printing trillions of dollars, we got this massive amount of inflation. And so they create this Inflation Reduction Act, which is supposed to reduce inflation, hence the name, and they're going to do that by, yes, printing trillions of more dollars. Now, a logical person might go, well, wait
a minute. Wasn't it the trillions of dollars that cause the inflation in the first place, So how could printing more trillions of dollars actually reduce the inflation? And if you ask that question then you would be right, but they would call you an idiot, So don't ask that question. But they have a better plan what they'll do, because, of course, yes, you're right, the trillions of dollars will add towards more inflation, but not if they cap the prices.
M that sounds like a pretty good plan. So one of the things that we're going to do, and it was in this Inflation Production Act.
By campaign on this.
Hard is he is going to make drugs more affordable. Not the drugs on your street, but healthcare drugs, right, pharmaceuticals. He wants to make them more affordable. And so through the HAHS, they want to negotiate prices for the drugs to be cheaper. They want manufacturers of these drugs to sell them for cheaper. They want to tell them how much they can sell them for. Okay, Well, that sounds good on the surface. Again, that's a first order effect. But what if it costs more to make the drug
than what I can sell it for. Well, then I guess I won't make it, because businesses are in the business of making money. Right, But what else happens? Could it possibly lead to higher rates of death? Could it possibly lead to lower quality of living? Well, these are some questions that we're gonna dig into. And I have the facts. I got the receipts, I.
Got the data.
We're gonna dig into this. I'm gonna break this down. We're gonna look at some other examples throughout history. We're gonna look at other countries that are doing the same thing. And then I'm gonna tell you, unfortunately what's inevitable. But the best part is what we can do about this.
So I got a lot to cover. I gotta take a very quick break though.
If you're just tuned in, you're listening to the Mark Moss Show, we're talking about the unintended consequences of price caps and what the Bide administration is doing.
We be back with more in a minute. Don't go away, I've we hear back all right, welcome back.
If you're just tune in, you're listening to the Mark Moss Show, We're talking about how price controls are always at the end of every empire, and I'm giving you exactly the play by play of what's happening now. We're talking about how the Biden administration put forward this IRA Inflation Reduction Act, and one of the first things they want to attack is the prices of drugs, prescription drugs, and we can already see how IRA drug price controls
are already impacting its members research and development decisions. Specifically, seventy eight percent are expected to cancel early stage pipeline projects, sixty three percent plan to shift research and development away from certain medicines. Ninety five percent are expected to develop fewer new uses for medicines because of the limited time available before being subject to government price setting. So because they can't make as much money, they're not going to
spend as much time doing research and development. If we don't do as much research and development, then we don't have breakthroughs in medicine.
If we don't have breakthroughs in medicine, then a lot of the gains that we've seen.
Like for example, tripling life expectancy over the last hundred years, starts to go away. Now we've seen this time and time again. Right, We've seen studies come out that show this, But at the same time, we constantly, for some reason, have more people wanting more and more of it. But I want to run through some of the effects that we've seen throughout history so we can start to understand this. Now,
this isn't new for the United States. I talked about it being at the end of the Empire, but we've actually seen it many times in the United States. We saw in nineteen seventy one to nineteen seventy four then President Richard Nixon used price controls, of course to control inflation.
Then they in pry.
Impose both price controls and wage controls, because of course, if you make more money, that's a problem.
That's inflationary.
As a matter of fact, most people haven't realized that yet, but the Federal Reserve, the central banks, they hate you. They're trying to bring inflation down, and you making more money is a problem for them. For some of you, having a job is a problem for them. As a matter of fact, they want to bring unemployment up, which means they hope their goal is for millions of more.
Americans to actually lose their job. That's what they want. That's their goal.
And they want to cap how much you can get paid at your job, and how much then those manufacturers where the companies can sell those products for. So we saw that, like I said, nineteen seventy one to seventy four, they did that. Now, at first it did seem to slow the rate of inflation because people didn't have as much money, businesses were not having as much money.
But then it ultimately backfired. As a matter of fact, it led to shortages.
And if you're even caught up a little bit on economics one oh one, you know that all prices are the equilibrium between supply and demand, and so they can affect the supply the demand side a little bit, but eventually that leads to shortages, which then brings the supply side down. And if the supply side drops faster than the demand, guess what happens.
Prices go back up.
And that's exactly what happened. In the Nixon administration. We saw shortages that happened for goods that were needed like meat and gasoline and building materials. Now, these shortages led to rationing, so in the seventies they were literally rationing gasoline. You had to go only to the gas station on certain days. It led to black markets for these types of goods to be sold, and eventually they had to
cancel it. They had to lift these price controls in nineteen seventy four because things had gotten so bad, but the damage was already done. The controls that had led to shortages rationing in black markets also had discouraged innovation. Of course, no one was investing, no one was building more. Why would I build a factory to bring more supply
that could help bring the price down. Why would I do that invest into that spend that time after energy, money risk if I know that I can't make a profit anyway because they're going to cap the prices, and so of course they don't. And so then after that was ended, we saw that the period from nineteen seventy four to nineteen eighty four was a period of very high inflation because then the prices were lifted, so then people could sell them for what they needed to, which
means prices went up. So the Consumer Price Index is measured by CPI rows an average of seven point eight percent per year.
During this period.
Now that was an average of it during that year, so it was obviously much higher.
We can see this throughout history.
France seventeen ninety three, the National Assembly was the ruling body of France during the revolution. They imposed price controls on a wide range of goods, including at that time apples. This meant apple farmers weren't allowed to sell their apples
for more than a certain price. Now, of course they were unpopular for people wanting to sell apples, and apple farmers were less willing to produce apples if they couldn't get a fair price for them, and if they didn't want to produce more apples, then we didn't have any apples. This is one of the things the price controls on apples that we can trace back that actually attributed or
actually say contributed to the French Revolution. When people don't eat, people aren't happy, When people don't make money, people aren't happy. When people aren't happy, they tend to go to the streets. We see it in France all the time. As a matter of fact, we see it in France right now.
We can go on.
We can see that all of this led towards, you know, this continued divide between rich and poor. It changed the taxation system, It led to this monarchy class that kind of grew up that the people weren't happy about this sort of us versus them, We the people versus the rich, and we.
See the same thing happened in our states today.
As a matter of fact, I saw a post from Wall Street Silver on Twitter came out and showing that the combined net worth of the fifty richest members of Congress is four point eight billion dollar dollars. So members of Congress, public servants that are there as a public servant to do a service, that are making public servant wages, they have a combined networth of four point eight billion dollars. So they have an annual salary of one hundred and
seventy four thousand. At that rate, they would have to work, you know, twenty seven thousand years to earn that much money. Obviously, well some of them look like they've been alive for twenty seven thousand years, but they haven't been. And so how the heck did they get that much money? Well, we can see that at the highest positions of our government on both sides of now they're abusing their powerful financial gain. Now again we can go back through history
some more. We can see China nineteen fifty three to nineteen eighty. The Chinese government imposed all types of price controls on a wide range of goods and services that led towards shortages. It was the centrally planned economy, Mao's great lea forward, trying to bring the country forward, that
constantly caused these types of things to go. Everyone should work on steel, So then in the backyard of everybody's houses they had smelting pots and they were making steel, which led to massive amounts of pollution and massive amounts of waste being all over the ground. Then mouths the great idea was to cut down the forest, or his idea was to go kill all the sparrows because they were eating the crops.
And then we got overran.
By bugs and constantly was trying to affect one thing that caused much bigger problems. And of course one of the biggest problems was, yes, a lack of goods, and specifically a lack of food. For example, the price of grain was set at zero point three yu wan per kilogram, which was below the cost of the production, which then led to a shortage of grain, and then the government had to ration it. Now we know through Maus greatly Forward, Thank you communism, Thank you socialism. About I think about
fifty million people died during that time. Communism and socialism is hard to say exactly, but somewhere have been responsible for about.
One hundred million deaths. One hundred million.
When you go back through the Bullshek Revolution of the early nineteen hundreds in Russia, through Germany and into Maus Greatly Forward, we had about one hundred million people died. Many of them tens of millions of them directly, you know,
murdered as they were opposing the governments. But the majority of them died from starvation because of the centrally, these horrible centrally planned ideas that always tried to control the economy, which always led to price inflation, which always led to price controls, which always led to shortages, which always led to people starving to death.
It's sad. It's just the history, though. You have to know this.
We saw Venezuela two thousand and three to the present. The government's been improsing in price controls on all types of goods and services. Venezuela, which was one of the richest countries in the world at the early part of the century, that has massive amounts of natural resources like oil, but yet they just can't seem to get them out of the ground. We see that their current inflation rate is almost four hundred percent. They're still trying to impose
price controls. If you're just tuning in, you're listening to the Mark Mos Show. We're talking about what happens at the end of every empire and the end of every democracy, which is capital controls and price controls, and where that's going.
Now.
I gotta take a quick break, but when I come back, I'm going to talk about what the future holds for us in the United States and most of the developed world for that matter. What I think happens, probably the most probable case in what we can do about it. You don't want to miss this, so don't go away, but I'm taking a quick break.
Don't go don't wait. Beer back, all right, welcome back. If you just tune in, you're listening to the Markmas Show. We've been talking.
About the inevitable end when you look back to history, the inevitable end of an empire, of a democracy, how it follows a predictable path. The last path is always capital controls and price controls. How we're seeing that to the Biden administration is imposing these capital controls through things like the Inflation and Reduction Act, trying to reduce inflation
by cappying the prices. And I went through the historical lens of how these always lead to shortages, which unfortunately throughout history has always led to mass deaths.
And I'm certainly hoping that's not the case.
Hopefully we could learn from the past so we don't have to continue to repeat those same mistakes. You know, the quote is that those vote don't learn from history are bound or actually is they doomed to repeat it? Michael is, of course, if we can wake up enough people to this. If people can understand what's going on, if we can look back to history and bring those lessons forward, maybe, just maybe we can spread the word to other people and we can change the collective mindset. Look,
it doesn't take a majority to prevail. It only takes a small, a right minority. It takes you and I, as Samuel Adams said, spreading brush fires in the minds of men. We don't need the masses. The masses are always wrong, and so we need to know this. And so that's why I'm talking about this.
Now. What I would ask for.
You is to go discuss these ideas with somebody else. Stop talking about the weather, Stop talking about the TV show that you saw, Talk about real subjects.
Talk about things that are going on in the world.
Talk about the direction in the world is going and what we could and should be doing about it.
Maybe also get involved a little bit.
Get involved, talk to your friends, family, your coworkers, yes, of course, but maybe even involved in your local government. Because where we're going isn't pretty. Now let me paint you a picture. So let's take a look ahead. Whether you're in Europe, in China, well, obviously, even if you're
in Venezuela's a little bit too late for you. But if you're in the developed world Canada, of the US, you know, North America, Australia, Europe, et cetera, this is where this is what your future holds, Okay, because at the end of every democracy and empire, this is what happens. So we have inflation raging obviously now in the United States, you know, Jerome Palwat, the head of the FED, is saying that they're bringing under control.
They're not quite sure.
There might be one or two more rate increases left, but it thinks he's got under control. Meanwhile, we see inflation is raging still in the UK and Europe really really hard.
But it's happening in the developed world. China's happening.
And I just told you earlier in Venezuela four hundred percent. So we have this massive problem with inflation.
Now. The inflation problem is not going away. I've been very vocal.
I've been telling you for a year that it might be some of the lowest inflation we'll see for the decade. Even when it was six seven, eight nine percent, I was saying that. Now, yes, I know, Mark, you're like Mark, but it's down, you're wrong. Look, nothing goes up or down in a straight line, so we have waves of inflation. So when you look back into the seventies, you look back into the forties when we had these periods of high inflation, you see that inflation sort of comes in waves.
But you also know that nothing, no.
Stock or asset price ever goes up in a straight line or even down in a straight line. So on its way down, it's bouncing. On its way up, it's bouncing, et cetera. And so inflation will come in waves, and we'll have periods of high inflation and disinflation, but we have more inflation. Why well, there's two main reasons why we're going to have higher inflation. Number one is because of as I talk about, the decentralized revolution or deglobalization.
You see this the rise of the bricks. The bricks are rising up to challenge the dollars dominance, and they don't want to be cool. They don't want to be cooperative working together, They want to be competitive or coercive. Presidency challenged the Bricks coalition at the meeting they had just a week or two ago, saying that it's time for the bricks to rise up and challenge the G seven. So rather than being co competitive or I'm sorry cooperative,
they want to be competitive. Now what does that mean. Well, that means that they want to be more restrictive on free trade. They want to impose tariffs and regulations on certain things. China and the US have been having this sort of trade war going on for a number of years. The US has completely cut them off of high level computer chips microchips. They just cut us off of two main commodities that we need for our ev sector, gaylium and geranium. As these things happen, it continues to push
prices up. We see that the US now wants to bring or re on shore manufacturing, which is a good thing, but that's going to push the prices of everything up. Things get more expensive as we start to get more instability and insecurity around the world. You know, ships are getting hijacked, it's getting dangerous to move things.
That's going to.
Push the prices of things up. So we have massive inflation ahead. We also have massive because of a deglobalization of decentralization. We also have massive inflation ahead because all the governments are broke. So just like in Venezuela. As I said, we're at four hundred percent inflation.
We're at Turkey.
The Turkish layer has lost ninety five percent of the US dollar in the last five years because they're printing too much money. But it's the fate of all the countries. As I said at the beginning, the third inevitable in life now is that there is going to be money printing. And so as these governments continue to print more money, it's going to continue to cause more inflation. And there's no way to print less because we're in a based monetary system, which means we constantly have to be filling
this up. Think about it this, because we're in a debt based monetary system.
What does that mean exactly? So you hear this.
Reference like money printer, go burr, it's not really how it works. The central banks don't actually print money. What they do is they set the monetary policy for the banks to create the money. Now, the banks create the money by issuing a loan. So when you go to the bank to get a business, a house, a car, a boat, a bike, loan, that money is then created into existence. So what does that mean exactly? What it means is that the dollars are a liability. The debt
is the asset and the asset. The debt is the asset because it's backed by the house, the car of the boat. So the dollars of the liability that we're created to pay for the asset, which is the collateral. But what happens if that collateral, if the asset prices start to plunge, Well, all of a sudden, the debt is the dollars. The lie abilities are no longer backed by the debt because the collateral has fallen, which then means I get margin called we have to bring in
more capital. But in a liquidity event, how does that work. It starts to create a doom loop. It starts to create this waterfall, this event where the collateral has falling so fast that it can't be covered. The banks, the governments of the world cannot let this happen.
It can't happen, it won't happen.
And so the only way to prevent that from happening is to make sure asset prices continue going up and not down. And so they need inflation. I'm just letting you know this is not going away. They have to print the money because of the acid prices always have to be going up because we're in a debt based system. It's also inflation is going up because of the deglobalization
and the decentralization is happening right now. The other thing that we have is because of the debt levels going so high, so as the government has to continue to print more money, deficit level spending, spending more than bringing in.
As a matter of fact, in the US, we've now reached or.
We've had to double the deficit spending, and that is inflationary as well. So we're in this doom loop where we can't stop won't stop printing now. In this event, the only way forward is this what's called financial repression, and that means that we need inflation. The governments need inflation to be really high, and they want inflation to be high and bond yields to be low, and in that gap is how they can steal from you. So remember debt to GDP is a ratio debt divided by GDP.
So I can bring debt down or I can bring GDP up. One way I bring GDP up is just with inflation. I used to sell ten iPhones at one thousand and I sell ten iPhones at two thousand, my.
GDP went up.
Congratulations, even though I didn't increase the economic output. And so this financial repression high inflation, to bring the debt to GDP ratio down the GDP up is the goal. But the problem is in that type of environment, when bond yields are low and inflation is high, then people don't want to be trapped in that system, which is why capital controls always fall into place at the end. And with capital controls come price controls. All right, this
is the future, this is what we're facing. It's you have to be prepared for it.
So what do we do about this? Well, we want to.
Be inside assets that aren't in that system. So this would be non financial assets. I like bitcoin, That's what I talk about it all the time.
Also, you can.
Think about gold, you can think about real assets like scarce property such as waterfront property or other types of trophy assets. You can think about fine art, collectibles, cars. You can think about energy intensive assets again like gold, other commodities, things like that. This is why you see nations like China just bought their fifth lithium mind while
they're dumping US treasuries. They don't want the dollars, they'd rather have the commodities, and that's the plan that I'm taking as well.
I'd love to know what you have to think.
Hit me up on social media at one Mark Moss. If you just tune in, you're listening to the Mark Maas Show talking about the inevitable fate of the United States, Europe and every other developed nation in the world.
That's a lot.
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