The Dan Bongino Show - The Bongino Brief - Apr 17, 2021
Aired: 2021-04-17
Duration: 07:19


=== Why Bitcoin Is Worth More (07:19) ===

[00:00:00]  Dan Bongino.
[00:00:02]  Welcome to the Bongino Brief.
[00:00:03]  I'm Dan Bongino.
[00:00:05]  I've got three stories in a nutshell that are related.
[00:00:10]  A story about inflation.
[00:00:11]  A story about our national debt absolutely exploding.
[00:00:15]  And to be fair, under President Trump, President Bush, it wasn't just Obama and Joe Biden.
[00:00:21]  Fairness matters if your integrity matters.
[00:00:25]  And a story about Bitcoin.
[00:00:26]  Well, they all share one big thing in common.
[00:00:31]  Let's get to story number one first in this headline, and I'll explain.
[00:00:35]  CNBC.
[00:00:36]  Consumer prices rise more than expected, pushed by a 9.1% jump in gasoline.
[00:00:42]  Ladies and gentlemen, consumer prices are blowing up.
[00:00:46]  Have you seen the home prices down here in Florida and other hot markets?
[00:00:50]  We're looking for a new house, folks.
[00:00:52]  We need a bigger studio.
[00:00:54]  The home market down here in Florida, listen to me, is insane.
[00:00:59]  If you've tried to move down here, you know exactly what I'm talking about.
[00:01:02]  The price of homes down here is, it's not even insane.
[00:01:06]  It's beyond insane.
[00:01:07]  It's like Joaquin Phoenix Joker insane.
[00:01:10]  It's not like Bob, what's Jack Nicholson Joker.
[00:01:13]  It's totally Joaquin Phoenix insane.
[00:01:18]  Consumer prices are through the roof.
[00:01:20]  The price of food.
[00:01:21]  The price of gas.
[00:01:24]  The price of commodities.
[00:01:25]  The price of gold.
[00:01:28]  Folks, you can't print a boatload of money every single day.
[00:01:33]  Billions and billions of dollars being printed and digitally created out of thin air, chasing the same amount of products and not expect the prices to go up.
[00:01:42]  Let me get to headline number two.
[00:01:44]  Again, I'll explain why these are related in a minute.
[00:01:47]  U.S.
[00:01:48]  budget deficit, CNBC.
[00:01:49]  U.S.
[00:01:49]  budget deficit jumps to a record $1.7 trillion this year.
[00:01:53]  By the way, I read a story the GOP is putting together a commission to study the budget deficit.
[00:01:57]  I got an idea!
[00:01:58]  We don't need a commission!
[00:01:59]  We're in a lot of debt!
[00:02:01]  Just stop spending money!
[00:02:02]  How does that sound?
[00:02:06]  How is the debt exploding?
[00:02:09]  Debt and deficits.
[00:02:10]  Deficits are annual.
[00:02:12]  The national debt is cumulative.
[00:02:14]  How is it that we keep spending money we don't have?
[00:02:17]  Where are we getting the money from, folks?
[00:02:20]  If we don't have the money, the federal government, because they haven't taken it in in tax revenue, then how are we spending 1.7 trillion dollars more than we actually have?
[00:02:32]  Because we're printing it, folks.
[00:02:35]  The Federal Reserve, under all kinds of names, quantitative easing, all kinds of BS names for things, are essentially printing money like it's a Monopoly game.
[00:02:47]  If you did this, it would be called counterfeiting.
[00:02:50]  Our debt is exploding because we are trying to monetize it right now.
[00:02:55]  Let me get to my third story because I want to explain how these are related.
[00:02:59]  CoinDesk.
[00:03:01]  Bitcoin and Ether are steady and near record highs as all eyes are on the Coinbase listing.
[00:03:08]  Coinbase just went public at an IPO and it exploded.
[00:03:11]  The value of Bitcoin, cryptocurrencies are exploding everywhere.
[00:03:16]  Why would that be?
[00:03:18]  Why would the value of a not easily reproducible currency.
[00:03:24]  Gold, you have to go mine it, right?
[00:03:25]  You can't just... When the United States government wants to create money, the Federal Reserve just does it for them.
[00:03:30]  You know how they do it, folks?
[00:03:31]  They type it up on a computer and they digitally create new money.
[00:03:35]  It's really that simple for them.
[00:03:38]  When you want to create other forms of value storage, like gold or bitcoin, you have to mine a bitcoin, which takes a very long time and a lot of computing power.
[00:03:49]  If you want to create new money in gold, you have to go mine it, which is really hard.
[00:03:55]  That's why gold and Bitcoin have maintained their value and have gone up in value while U.S.
[00:04:01]  dollars have plunged.
[00:04:03]  How do we know that?
[00:04:04]  Because it takes a whole lot more U.S.
[00:04:06]  dollars to buy a Bitcoin now than it did 10 years ago.
[00:04:09]  Why is that?
[00:04:10]  Because we are printing a lot of money, which makes what?
[00:04:14]  Which makes the money in circulation worth less.
[00:04:18]  Folks, This is not hard to figure out.
[00:04:21]  How liberals and some rhino big spending conservatives don't get this, I don't understand.
[00:04:27]  If when you worked back in the, say, 70s or 80s, say you're retired.
[00:04:32]  Say when you worked, there was $100 in circulation.
[00:04:35]  There were trillions, but just for sake of even numbers.
[00:04:38]  It was $100 in circulation.
[00:04:40]  You worked and got one of those dollars.
[00:04:42]  That dollar out of the $100 in circulation was worth a lot.
[00:04:47]  It was worth one out of a hundred.
[00:04:50]  If you now print the hell out of money and we now have a thousand dollars in circulation, you have 10 times the money in circulation because you just printed or created more on a computer.
[00:05:03]  That same dollar you owe now is only one of a thousand, not one of a hundred.
[00:05:08]  So the dollar you earned back in the day was worth one out of a hundred is now only worth one out of a thousand.
[00:05:18]  But what if that dollar you earned back in the day has been sitting in your bank account earning almost no interest whatsoever because of the low interest environment?
[00:05:26]  You probably should have spent it when it was worth one out of a hundred.
[00:05:29]  Probably should have bought some gold or something a little more stable.
[00:05:33]  Or some real estate or something.
[00:05:34]  Because that dollar's worthless now.
[00:05:38]  And as that dollar's value goes down, the value of the everything that's not printed as much as a dollar, bitcoin, gold, real estate, hard to build houses, Goes up and up and up.
[00:05:51]  Folks, this is only going to get worse.
[00:05:53]  This inflation problem, as we start printing more money, and your dollar used to be one of a hundred, now it's one of a thousand, soon it'll be one of ten thousand, then one of a million, when it's really worthless.
[00:06:04]  Everything you worked for is going to be gone.
[00:06:05]  Because you can't just print new money at home.
[00:06:09]  That dollar you earned in the 70s, which is one of a hundred, is the same dollar sitting in your bank account now, worth one out of a thousand, soon to be one out of a million.
[00:06:18]  Everything you worked for is being whittled away because they're trying to monetize our debt.
[00:06:24]  The federal government's realized a long time ago, federal governments around the world, they will never pay back the money they owe their citizens.
[00:06:30]  The United States will never, listen to me, they will never pay back our national debt, closing in on $27 trillion.
[00:06:36]  We don't have the money.
[00:06:38]  So what do they do?
[00:06:40]  They just print the whole bunch of money and monetize it.
[00:06:43]  In other words, they make the debt we owe worth a lot less.
[00:06:47]  Because if your money's worth less because they print it a lot more, so is the money the federal government owes.
[00:06:54]  That's the dirty little secret about government debt.
[00:06:58]  They want this to happen.
[00:07:00]  The more they print, the less they have to pay back later.
[00:07:05]  Because the money's worth less, and so is the debt.
[00:07:08]  And that's why things that are hard to create, like Bitcoin and gold, are going to continue in the future to be worth more and more and more.
[00:07:17]  The Dan Bongino Show.