Inflation Jumps - Bitcoin Dumps - Have We Found The Bottom?

makes sense of what's going on. Of course, I talked about the decentralized revolution, the way the world has been centralizing and now it's about to be decentralized that we can see it happening all over the world, and of course, UM it's being led by new technology like bitcoin and cryptocurrencies. You now in the in the bitcoin cryptocurrency space. Over the last couple of months, it's been been pretty bad

for a lot of people. We've seen, UM a blow up similar to the Great Financial Crash, which I've covered UM at length. I know for a lot of people they got caught up in this crash and I and I I don't hope for anyone to lose money. It makes me sad to think of anybody that's being being hurt by this, and I've heard, unfortunately, I've heard countless stories of people that have lost everything. UM. I believe I've even heard of people taking their own lives over

how much money they've lost. It's that bad. So I don't I don't wish that on anybody, UM, but I also hope that people learn their lessons from it. But for those people that might be caught up in the

in the mix, there might be some good news hopefully. So, UM, I've kind of been keeping you up to date on what's going on, and we saw, um, you know, when this domino started dropping down, UM, bigger companies started getting getting caught up in this, and Celsius is one of those companies that really got up, got caught, got caught in this mess. You know. They had just way too much exposure to these risky protocols and they stopped letting

withdrawals happen about a month ago. And UM, I've been trying to keep you up to date on this in case you have money that's locked up on there. And UM, while I don't want to falsely encourage you and tell you to hold your breath, I do you know there

is maybe a little bit of hope. UM. In the beginning, when it first started happening with Celsius, they were in danger of getting their positions liquidated because bitcoin was falling so fast and they had wrapped up a bunch of bitcoin and locked it up on some of these defied protocols. And because it's in this defied decentralized finance protocols, um, there's transparency. So most of the people could see where that was apt and uh, you could see where their

liquidation price. I think at the beginning when they first locked up withdraws, it was about eighteen thousand, so bitcoin had hit about eighteen thousand, Celsius would be liquidated. But then Celsius has been putting back more collateral, more collateral, more collateral onto the system to lower that liquidation level. Then they got it down to like fifteen, and then the thirteen, and then to like eight and then to five.

And that's potentially good news if you have money locked on Celsius because they have Uh, well, it's good for everybody. Uh it's good for if you're in crypto at all. But if you have money locked up in there, it's it's potentially good because maybe if they don't get completely liquidated, maybe there's a chance you get money back again. Don't hold your breath, um, but maybe there's a little bit

of hope there for you. It's also good for the bitcoin space, uh, even bigger, crypto space, even bigger, because if they got liquidated, it could instantly put a lot of bitcoin and cryptocurrencies onto the market and dump it at a time when there's very thin liquidity, and it could push the price down even lower. So we saw this week. It says Celsius pays off their last defied loan and reclaims nearly two hundred million of bitcoin from

um Compound, which is a decentralized finance protocol. It says the troubled crypto lender previously paid off loans from Ave and Maker, and so basically what happens is, in order to get these loans, they had to put up they had overcollateralize them. So they had to put up, you know, about a hundred and fifty percent of the amount they

wanted to borrow back. And these are on these like protocols, so there's nobody to call up and say like, hey, buddy, you know we've done business for a long time, can you hold off for a second. Um, there's no Uh, that's different. So Celsius is c FI centralized finance. These are defied decentralized finance. There's nobody to call and ask if they could give you a favor, UM, And so they paid them off from a they paid them off for maker, and now they paid them off from Compound.

Now we can see that. Um. Like I said, they've been facing these liquidity problems, facing getting liquidated, but now they've been able to pay off this two million. They had paid down fifty million to Compound on Wednesday, and then that got them back ten thousand bitcoin, which was pretty pretty big number. Like I said, even if you don't have any money on these, still nice to not have to see ten thousand bitcoin get dumped into the UM into the market at one time, that'd be pretty bad.

That was worth about a million current prices. So they with with fifty million paid down, they got access to about two hundred million back UM, which, like I said, maybe it is pretty good. Um. He said. The maneuver followed a similar treasury management tactic that Celsius used recently to pay out to fully pay off and closes loans from a van maker. The loans on these protocols are overcollateralized, me in the borrows to lock up. So we've already

covered that now. UM. Is that a good thing or is it a bad thing, Well, there's could be potential legal problems from this, and the reason why is that, so, how are they able to pay these down? Where are they getting the money to do this? And if they have money to pay these down, why are they not giving money back to people who had money on the exchange?

Why are they not paying back to positors. What happens is whenever you run into legal problems and you have to go into some sort of a restructuring or some sort of a reorganization, there's typically an order process of who gets their money back first. Now, typically creditors get money back before depositors, so UM in a traditional publicly traded company, for example, bondholders who are creditors would money

back before equity holders or stockholders right um. Or for example, on a house you have like a first trustee, you could have a second trustee, the third, fourth, et cetera. And the first money would go to pay back the first trusteed, and then whatever is left we go to the second. If there's anything left goes to the third, etcetera.

There's typically an order of that, and we can see that there's all types of legal questions that are being raised of who should get paid first, and there's an article that came out of Bloomberg that says the leaguered crypto lender has paid back a string of death totally more than nine hundred million, which is good except for should some of that llion gone back to the depositors. Well, it says the paydowns have raised the spectru of a legal debate on how and in what order should distress

crypto companies payback creditors. Now, no matter what the typical order is, people are not going to be happy about this, and so it's definitely gonna be a legal debate and it's definitely going to bring all types of legal concerns about this, uh haiing back these platforms as we talked about Compound Maker, et cetera. So it's because the loans

from defied platforms are often required to be overclatteralized. Doing so what allows Celsius to reclaim the extra coins locked on the platform, thus securing more assets on a net basis. So you know, they did pay out fifty million, but they got two hundred million back, so I guess that's

a good thing. But it says like uh, like most things, crypto were an uncharted territory in terms of who shouldn't ultimately get paid back ahead of other parties, which is complicated by the smart contracts implicated and by the intertwined defined lending contractual relationships. So it says Celsius has been exploring options, including a restructure and of its liability. So they're trying to figure out how to restructure this. They

can see who gets their money back. Now, from what I've been able to dig in and find out, it looks like Celsius was holding money in a couple different ways. So some people just had money deposited there, so Celsius was just holding it on their behalf. So I think if you just had money being deposited there, then that probably comes back first. Then if you were getting a loan, so you gave them collateral and they they gave you

a loan back, that might be second. And if you gave them money and they were paying you yield back, that would probably be the last to get paid back. So it looks like depend on how you had money, or if you had money and how you had it on Celsius, that would be the order that you get paid back. Hopefully, maybe it depends on where you're at.

There is that Celsius repaying some debt ahead of a potential bankruptcy raises the issue of so called quote unquote preference claims in a Chapter eleven bankruptcy, some creditors aren't supposed to end up better off than others. Quote. It's fair to say that any payments or exchange is made while not allowing creditors to get their money in the ordinary course of business or potentially subject to clawbacks in bankruptcy.

So if Celsius gave you some money back and then through bankruptcy court they found they shouldn't have, they could come after you to get some of that money back. Something to keep in mind now, probably nobody listening to this is getting money back from Celsius. If you have, I'd love to hear from you. Hit me up on social media at one Mark Moss. That's at just the

number one Mark Boss. I'm gonna come back. I got a whole lot more to cover today, talking about what's happening with cryptocurrencies, what's happened with the US Treasury, um happening in South Africa. There's been a whole lot of news this week. I got a lot to get through. Um, you're listening to the Mark Mos Show talking about the decentralized Revolution, talking about bitcoin, cryptocurrencies and macroeconomics. Be back with that and more in a minute. So don't go away,

all right, welcome back. You are listening to the Mark Mass Show. We're talking about the decentralized Revolution. We're talking about bitcoin cryptocurrencies, We're talking about the macro economic picture of the world, the geopolitics picture of the world, and so much more. You know, I don't have a lot to dig into the geopolitics side today, um, but we have to look at all of that. I'm trying to really bring everything that's happening in the world today into context.

And you have to understand what's happening with politics and the geopol Understand where the financial markets are moving, because unfortunately it's become very political. Um. And we can see some of that happening. UM. So, for example, we saw the US Treasury. So the United States has a central bank, the Federal Reserve, right, and then they also have the U S Treasury. Now, the Federal Reserve is a semi quasi private institution. It's kind of run by the banks. Um.

There's a there's a lot to be said about that. Um, if you'd like to know more about that, you can hit me up on social media tell me you want me to talk about that more, or just check out the book The Creature from Jekyl Island. They really get into that. It's pretty good. Um. So, the FED is this kind of semi quasi private you know, institution that basically creates money from thin air, and they loan it to the banks, the commercial banks, and then the commercial

banks create that money into existence. Now the government also needs money. The the US government is in debt thirty one trillion dollars. How do they get the Well, people have to loan it to them. So who loans it to them? Well, uh, if you have money and a pension fund or a four oh one K fund or something like that, there's a good chance there's a good chance you have loaned money to the US government. If you have bonds in your portfolio, there's a good chance

you've loaned money to the government. Other nations loan money to the government. So Japan and China have loan money to the government by buying bonds. So when they buy the bonds, they do that. So how does the problem is? Is that the US government runs a deficit, meaning they have to live off debt, and they have less and less people wanting to loan them money. So the amount of the amount of people that want to loan money to the US government has been dropping. China doesn't want

to lend money to the government anymore. Japan doesn't have any money to borrow, buy money, or lend money to the government anymore. So then who does Well, that's where the Federal Reserve comes in. So the Federal Reserve can create money from thin air and then loan it to the government. Pretty interesting, right, So that's uh, I broke I broke that down for you so you can understand.

That's with the U. S. Treasury. The U. S. Treasury is the the accountant there, the CFO of the government right there, the bookkeeper whenever you want to call it. So the Treasury Department handles the money issuance. So these are the dollars, the coins that we have, and they also issue you know, the treasury there, the accounting department, so they manage who gets paid. Do we give out welfare U b I, do we give out you know, tax re rebase refunds? Right, And so they get the

money out to the public. And this is why a lot of times people say that the federal Reserve isn't really inflationary because the federal Reserve can't get money to the public. The Federal Reserve can only get money, um, they can buy debt of the government and then the government can now put more money out into the public. And so that's just kind of the difference of the U. S. Treasury versus the follow Reserve. Now, the U. S. Treasury

um has at times throughout history made their own currency. Um, they're talking about creating their own currency. Again. A lot of people that understand how that works think, so, wait a minute, why does the Treasury have to borrow money from the federal reserve that has no reserves. They're not federal and they have no reserves, And they basically loaned me money that they created from thin air. So why

wouldn't I just create money from thin air? And if you ask that question, that would be a very good question to ask, and we'd all like to know the answer. Now, in history, there's been really one time in where the Treasury has said, you know what, we'll just make our own money. And they did. They were it was a type of money called a green back. Now a lot of people think that the green back is a slang term for the dollar, which it kind of is, but

it was actually a different type of money. And that's when then President Abraham Lincoln said, we don't need to create borrow money from the FED. That creates it from thin air. Well, it wasn't the it wasn't the FED at the time. Sorry, it was the National Bank. But we'll we'll just create our our money, our green back, which they did. Of course Abraham Lincoln died. Might have a connection, maybe not. I'll leave that for you to decide and draw your own flight. Are your own lines there?

But we've seen that the President Joe Biden he ordered he had an executive order in March on cryptocurrencies directed at the Treasury Department for them to take the lead among other government agencies and developing policy recommendations on cryptocurrency. So it's not up to the FED. A lot of times people would say, why would the central banks ever allow bitcoin to succeed? They don't want to give up control over the money. Well, the FED doesn't create laws.

It's not up to the Fed to decide if they can let a succeed or not. The government they make the laws, and so here we have The President had an executive order in March directing the Treasury to come up with policy recommendations on bitcoin and cryptocurrencies. Now the Department, the State Department of the Treasury, has requested comments from the public on the potential opportunities and risks of digital

assets and compliance with that executive order. So whenever whenever, a lot of times when the government is going to create new laws or policies and regulations, they'll put things out for a public comment so they can hear what the public has to say. It's not quite a vote, but at least they're getting information. So a lot of times you'll see you know, think tanks and you know

law firms chime in on this. In the cryptocurrency space, it's been common in the past for individual users to start flooding on the comments, and that's kind of what's happening. And it says in a Tuesday announced with the Treasury said it was asking for input from the public that will quote inform its work in reporting to the President and possible implications of digital assets on the financial markets

and payment infrastructures. UM so that's something that you can do if you would like your voice to be heard. It's not gonna be done at the ballot box with a vote, It's going to be done through comment like this. It says, quote. For consumers, digital assets may present potential benefits such as faster payments, as well as potential risks, including risks related to frauds and scams. There's always frauds

and scams. If you need the government to protect you from being defrauded or scammed, you should probably go look in the mirror again. If you think the government can protect you from getting fraud or scammed. Uh, I have a bridge to tell you. I've been talking about that a lot to tay. Um says the Treasury is seeking to benefit from the expertise of the American people and market participants by soliciting public comment as we engage in the important work. Um, so is buying a lottery ticket

like I be in a scam? I mean, what's the chance of you getting your money back? Uh? They don't stop that anyway. The public has until August eight to submit comments to the Treasury on what they believe would be the implications of this. It says that the potential impact of introducing new financial products and services. In addition, the Government Department requested Americans waigh in on potential risks, including losing private keys and the authenticity of digital assets.

Think about that, um, The government requested Americans weigh in on the potential risks of losing your private keys. So the revolution. The revolution is that I can hold my assets in a way that can't be c stolen from me. And I do that by me taking personal responsibility and holding my cryptographic key. I don't have to I can I don't have to buy it, I can leave it, let someone else management key. But but I have the ability to hold my key. But if you lose your key,

then you know, then you lose your key. So they want to They want Americans to weigh in on the risks of losing your private key. So if everyone says, well, it's way too risky, it's way to risk you should do something about feel that they're going to make it illegal for you to hold your own keys. Now, think long and hard about that. That's what they're talking about. That's their words, not mine. Man. You listen to the

Marktmas show. We're talking about the decentralized Revolution. We're talking about bitcoin, cryptocurrencies, macroeconomics, politics as well, talking about US Treasury deciding whether you should use cryptocurrencies or if they're too risky. I got a lot more to cover in a minute when I come back, so don't go away. I'll be right back. Hello, welcome back. You are listening to the Markma Show. We're talking about the Decentralized Revolution.

We're talking about bitcoin cryptocurrencies, We're talking about geopolitics, we're talking about macroeconomics. We just got done talking about the politics side, talking about the Biden administration and the Treasury um. And you know how they want to protect you from the risks that are in the bitcoin cryptocurrency space. And it's not just the US government that wants to protect you from your own self. We see in other countries as well. The thought of needing the government to protect

me from myself it kind of makes me mad. I mean, the fact that anybody would need would want I should say I could see, I could see that some people may want it. But the fact that anybody thinks they need the government to protect them from theirselves, I guess it just kind of shows you where we're at in the world today where you know, with great freedom comes great responsibility, Like if I have the freedom to hurt myself,

I have to be responsible enough not to hurt myself. Um. I guess the government could take away my freedom to hurt myself and they don't have to have the responsibility of being able to hurt myself. But is that the world that you want to live in? But some people do It's it's insane, So I guess the government needs to keep doing that. But it seems in saying to me,

I'd love to hear your thoughts. Hit me up on social media at one Mark Moss, just at the number one Mark Moss, hit me up on Twitter or Instagram. Let me know what you think on that. But we can see it's happening in South Africa. This week we saw the same thing. Um. The South Africa's Reserve Bank will regulate cryptocurrencies as financial assets, and new laws are expected to come in over the next twelve months. Now regulating as financial assets, I suppose that's okay. That's how

they're regulated the United States already as financial assets. So a lot of people get confused by this. Um. Basically, if you buy and sell bitcoin and cryptocurrencies. It's no different than buying selling stocks, buying selling gold, buy and selling real estate. It's the same thing. It's not a big deal. Your normal tax advisors fuel to help you with that. UM. It's being taxed as property financial assets. Now UM, they're they're similar to that, but they're not that,

which is where the problem comes in. UM. Bitcoin and cryptocurrencies could be and and I believe they will be used as payment as currencies. They already are UM throughout the world, mostly developing markets, which they definitely are an El Salvador where it's actually legal tender UM in the Central African Republic they are UM. In Central America they are El Salvador. As they said, Panama they are UM. In the United States they are as well. A lot

of people use them. The problem is that in areas of the United States where they're regulated as a financial asset, then every payment becomes a taxable event. So let's say I bought bitcoin whenever, and then I went down to Starbucks and I bought I bought a cup of coffee with with my bitcoin. Then that's a taxable events and I have to figure out, well, when did I buy this bitcoin. What was the price at that bitcoin at

the time, and and then I bought it? So I bought I bought five with a bitcoin at this price, and then I sold four dollars and twenty seven cents at this price. And so how much of that did I sell at this price? And what's the taxable event? And then I have to fill out tax reform. I mean, that's just insanity. So who wants to do that? So the problem is, as long as they're classified as financial assets, it's gonna greatly reduce the use of them being used

as currencies because of that onerous regulation. Who wants to deal with that? Um that, which is why in the African Republic, which is why we've seen in Panama, in El Salvado, etcetera, they've they've removed that so now you can just buy or not buy it, but you can use it freely. It says here the cryptocurrency use in South Africa is in a healthy space, with around thirteen percent of the population estimated to own some form of cryptocurrency. That's a that's a big number. Let me tell you

why that number is important. When you look at new technologies telephone, color TV, washing machine, Internet, whatever. Um. There's what's known as the diffusion of innovation, and it shows how fast or how long it takes for a new technology to reach a level of saturation or a level

of of you know, people using it. And when you look back throughout history and you see all the different things with the telephone and the color TV and the Internet, etcetera, they all have different time frames and typically you measure it to about an eight percent adoption rate and then

use something called an curve. And so if you look at all these in a chart, which I can't show you because you don't see it, uh, but if we look at that, they all have this escort where they kind of move in parallel the bottom very slow adoption cycle, very very slow. It moves up slowly, and then there's a point, this inflection point, where it starts to move

up and starts going up vertical pretty quickly. And then it goes up vertical for quite a while, and then it starts to taper off and it starts to move to the right and moves horizontal very slowly. Again. The way that s curve works and is reliable or lots of different metrics is that typically the time it takes to go from zero to ten percent adoption is the same amount of time we would take to go from

ten percent to adoption. So the first ten percent is very slow and the last ten percent is very slow. The middle typically goes very fast. The reason why is is an important number is because the time it took to go from zero is the same time it take

to go from ten to thirty. So we're already asked the ten percent adoption um that was reached in about two twenty, so that means using s curve, which is very reliable, that means that we should see bitcoin and cryptocurrency reach an adoption by the end of the decade, which for some people might seem like a long way away. For some people who don't seem that far, it probably

depends on how old you are. The older you get, the more time goes by fast and so um we can see in countries all around the world we've well surpassed the ten percent mark in pretty much every country, and so we are on track to see about a nine adoption rate by the end of the decade. That means that this decade is going to change the world faster than we've ever realized because it's technology that changes

the world. If you go back through thousands of years of history, it's always one technological advancement that changes the world. Let me give you an example. Um, for thousands of years, people rode horses. The Roman army, which is the most powerful, the biggest army in the world, rode horses. But they would ride their horses to the battle. Then they'd get off the horse and they'd fight. UM. But in the medieval times there was a new technological advancement. It was

something known as the stirrup. The stirrup allows the rider to get on top of the horse and more importantly allows them to put their feet into these stirrups on a saddle and kind of stand up on the horse a little bit. With that new invention, it allowed a night with full armor to get up on that horse and now sit on that horse and have control with his feet. And now they could fight from a horse. It seems like they should have that a long time ago,

but they didn't, and so that changed everything. So now one night on a horse could take out a hundred peasants or surfs. That technological advancement changed the world. It changed warfare as we knew it. Then in the hundreds we had something called the gunpowder Revolution, which is guns and now one or for one peasant with a gun could now take out a hundred nights. And so those technolical technological advancements change the balance of power, and then

it changed the world. And so that's what we're witnessing today and we're on track in South Africa and most of the world to get to there before the end of the decade. It says, with more than six million people in the country having cryptocurrency exposure. It's a lot but there. But currently it's required to be recognized as a financial there anyone who's involved in it is required

to be a financial service provider. Of course, they want to protect against money laundering and tax evasion, of course terrorism finance, because they're horrible things. We wouldn't want that to happen. But they said, by all definitions, it's cryptocurrencies, they're not a currency, it's an asset. It's something that is tradeable, is something that is created. Those are true. Those are true. But to try to define a brand new technological revolution in a in a in a small

classification like that, it's too small. When when electricity was first created, it was sort of like a digital candle, and it was that, but it became so much more. When the Internet first came out, it was a way to send electronic messages. It was that it still is today, but it became so much more. And so to say it's only an asset, it's not a currency, it's right and it's wrong. Yes, it's an asset, but it's so

much more. Listening to the Mark Mo Show, we're talking about the decentralized Revolution, talking about the way the world is changing through technology with bitcoin, cryptocurrencies, macroeconomics, geopolitics like we're talking about today. I got a lot more to cover when I come back in a minute. Um oh, I don't know if I can get through it all. Don't go away, You're not gonna want to miss what I have to say. We're back in a minute. Don't

go away. Hello, Well, welcome back. You're listening to the Mark Mo Show. We're talking about the decentralized Revolution. We're talking about the way the world is changing right before our very eyes, of course, being led by bitcoin and cryptocurrencies. We're talking about it from a geopolitics and a macroeconomic viewpoints you can understand exactly what's going on. And we've covered a lot of stories today. Um, hopefully you're here listening.

If not, where are you been. If you're not driving, pull your phone, put a reminder to join me on this channel at this time each and every week. And if you did miss any of it, don't worry. I got your back. You can check me out on the podcast. Just search Mark Moss Show or Mark Moss Podcast on any of your favorite players iTunes or the I Heart Radio app or whatever. You'll find me there. Oh and yeah, if you wouldn't mind, I'd love a nice review. I could share you some extra reviews to get my um

get a little bump up in the algorithm. Alright, So I got a lot to cover. Are already covered a lot hopefully. If you've missed some of that, go check that out. But the big news this week, and the trend that's been kind of going through all the headlines has been that we have seen another record cp I print. Another inflation number has reached and all time high. Now, as I said, we haven't seen this high since forty

one years. Um. However, that's a really manipulated number and the reality is we're higher than we've ever been, um, and so it's causing a lot of problems in the marketplace. And um, what exactly is going to happen? Well, right now, stocks and risk assets, so tech stocks and bitcoin were stumbling a little bit, although they seem to pick back up. But this, this problem, this this is a big problem,

and it's important to understand. One of the reasons what we talk about bitcoin and the decentralized revolution is because nobody should be controlling the money. It's ridiculous that a group of people at the Federal Reserve decide when they want to increase the money supply and decrease the money supply arbitrarily up to them. It's insanity. And if I could show you a chart right now, show you a

chart that shows just how insane it is. Every boom and bust we've had since the creation of the Federal Reserve has gotten bigger and bigger and bigger. I mean, I could just give you an example. So in two thousand and eight they had to create seven hundred billion dollar is to plug the hole in March. It was um not seven billion, it was about seven trillion. Wow, it's a big difference. The next one could take twenty trillion, so you can start to see the magnitude of these.

Now some of the things, Uh, I'd like to say that inflation, it's not. I don't want to say that. The definition of inflation, per the Austrian economist view is that inflation is the increase in the money supply. Prices going up are the results of that, and we're seeing some signs of that all over the place. One of the reasons why inflation is so high is because rents in the US are rising at their fastest pace since six more More says more so the more supply and

signs of a peak could ease the market. Well, that's what this is. I don't agree. It says the gap between wage growth and rent increases is narrowing. So for this article I read this week, it says rents rose in the US last month at the fastest pace since, helping to propel overall inflation to a fresh four decade high. Now, first of all, this is greatly misunderstated in the CPI numbers Like insane um and the next measuring rent of a primary residence was zero point eight percent higher in

June than the month before. An acceleration from the zero point six percent increase recorded in May. So, first of all, what this is saying is that rents are still going up, just at a little bit of a slower number. According to the Labor Departments of report on Consumer Prices published Wednesday, in the twelve months through June, rents were up five point eight percent. Now that's insane. I don't know where they get that number from. UM, well I do they

They got it from the Labor Department. I don't know why they're getting that from the labor Department. I would think there's be way better places to get that from. So it says according to the Labor Department's Report on Consumer Prices published Wednesday, in the twelve months through June, rents were up. Now, if I go on to rent dot com, UM as of June fifteenth, the report was last update, says that a monthly look at the average

rent price trends across the United States. It says that year over year, a a two bedroom apartment went up by twenty six point eight percent, so about a year over year. So how did the labor mark the UM? How did the Labor departments report show five point eight percent it's a big discrepancy, isn't it. We should probably get to the bottom of that. I would think it's a pretty big difference. Now, Um, part of the thing is that there is no such thing as the real

estate market. I make this case all the time. There's thousands of markets broken up by size, type, everything, And we can see that, for example, in the state of California, rents went up by on average for the whole state, But in Oregon they went up by forty five percent. So two in California, fort in Oregon. Now, if I go to month, if I go to let's see Nevada, they only went up by five percent. These are rents, Okay, this is per rent dot com. So okay, Nevada did

go by five percent. So if I go back to this report here, it says that the Labor Department's report says, okay, so for Nevada, that's correct. I can see, uh, Nebraska's three point six that's pretty good, Okay, Minnesota's five percent,

Wisconsin six percent. But everywhere else, I mean, Ohio is thirty five percent, Pennsylvania's North Carolina's South Carolina's thirty five, Florida's forty two Louisiana's thirty eight, Arkansas is thirty five, Texas is thirty Uh oh, New Mexico went down, so um, it's certainly not an average. The average is twenty seven percent, not five percent, so you can see how grossly misunderstated

this is. The Other thing to keep in mind is that rents are a very long lagging indicator because most people have a one year lease, some people have two or three, and so those rents don't get marked up again until that lease ends, So um, we might not see the increase of these things for quite some time. So it's a it's definitely the wrong major metric to

look at. He says. The Labor Department measures tends to lag behind other estimates, so it's likely that rent increases will contribute to rise and inflation in the Consumer Price Index through the rest of this year. Now there's a big deal because the rent or the owner's equivalent of rent, is about I think thirty percent of the CPI basket measurement.

So if they say it's five percent, but the real number is twenty eight percent and it makes up a majority of that back skit, then CBI is way higher than the nine point one at they're stating we're probably oh, no, eleven twelve percent. I should probably do the math on that. UM Now, it says the good news is that market rents appeared to be topping out. UM. Yeah, right, I don't know where. UM now. Again, as I said, these

are averages, so there are places that went down. As a matter of fact, we can see here that UM Austin, Texas went up by a hundred and twenty one percent. Long Beach, California, went up by six. Tacoma, Washington went up by fifty percent. New Jersey, Jersey City went up by forty percent. New York, New York, New York went up. Okay, but some places went down. So Cleveland, Ohio went down, Pittsburgh went down by six, Indianapolis went down by Las Vegas,

Nevada went down by fourteen percent. So some areas did go down while some went up. UM. So you know, wherever they're getting their data, it's uh, it's obviously completely wrong. And it's not just rents that are the problem. We see gasoline prices remain high, nearly higher than the same time last year, and it says that it's cutting off

people's summer leisurely driving. As a matter of fact, they say it's keeping more drivers off the road than the COVID nineteen pandemic did at the same time two years ago. So the FED wants to destroy demand and it looks like it's working. People are so broke or feel so broke today that they're driving less than they did two years ago when they weren't allowed to drive on the roads.

It's pretty bad. And on top of all that, you're being completely lied to about the seat right number because the rents are not five percent, they are twenty eight percent on average for a two bedroom nationwide. What do you think about that? I'd love to hear from you. Hit me up on social media at number one. Mark

moss at one Mark moss Um. If you're listening to the Market Mos Show, of course we're talking about the decentralized Lucien talking about bitcoin, cryptocurrencies, talking about macroeconomics and geopolitics, so you can have more understanding of the world as we go through it. That's what I got for you today. Thanks for listening.