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March 4, 2024 - Fresh & Fit
01:37:51
George Gammon Returns
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Thank you.
What's up guys?
Welcome to Fresh Up Podcast, man.
We're here with George Gammon.
Money Monday.
Let's get into it!
it.
Let's go.
What's up, guys?
Welcome to the Fresh Fit Podcast.
Regular edition.
It's Monday, man.
We're here with a special guest, George Gammon.
He literally just came in from Columbia, man.
Welcome back.
We're always happy to have you.
We're starting a little bit late today, so all I'm going to say is rumble.com slash freshfitcastleclub.tv.
You guys, check us out over there because that's all the, you know, if we ever get canceled, we know exactly where to find us.
Behind the scenes.
Behind the scenes as well.
But without further ado, George, what's up, man?
Welcome back to the show.
We're doing these periodic shows with you.
We were in Columbia.
We did an awesome show and we got banned for two weeks.
Yeah, the very next day I was bad luck.
Now you're good luck, man.
What's new with your brother?
Not much.
Not much.
Bitcoin, was it at six million?
Six.
No?
60K plus.
Almost, almost, almost.
Getting close to a million.
Yeah.
Yeah, there's a lot to talk about.
We've got the BTFP that expires just in a couple days.
We were talking about that off air.
Yeah.
That was the Fed's bailout of the banking system back in March of 2023.
And most people don't realize that that was just a temporary program.
And so, in fact, I couldn't believe when they announced a month ago that they were going to discontinue the program.
I thought there was like a 99% chance that they would continue to just kind of extend and pretend.
This was like when Silicon Valley, the audience remembers when Silicon Valley and all that plummeted.
This was like last year.
Silicon Valley Bank and Signature, First Republic.
People forget about Credit Suisse.
It's a global mega bank.
And, you know, people think that, well, that wasn't that big of a deal.
But if you actually look at the assets on the balance sheets or look at the balance sheets that got wiped out, it was larger than the GFC. And that's adjusted for inflation.
So it was a really big deal.
And the bottom line is there was a lot of contagion risk in there.
So if the Fed would not have set up this program that expires in a couple days, we likely would have seen a GFC type of scenario back a year ago.
And now I think we're probably in inning maybe four or five of a rolling banking crisis.
And I don't think it's hyperbolic to say that when you look at things like commercial real estate.
And the regional banks have so much exposure to this.
What is now, you can't describe it any other way than just a toxic asset.
Just like residential was back in, or these mortgage-backed securities were back in 2008.
Pretty much the exact same thing.
And people think that...
I always hear these quote-unquote experts say, well, it's not that big a deal because it's just these regional banks that have this garbage on their balance sheet.
But that reminds me of Ben Bernanke.
And you guys are too young to remember this.
But back in 2000, I think it was 7 or 8, he had a famous line where he said, subprime is contained.
And it was not contained, as we know now, looking back in retrospect.
So whenever I hear people say that, it always reminds me, you know, it's like saying commercial real estate is contained.
Yeah.
I don't know if it is.
I don't know if it is.
Last time we were on with you about how commercial real estate was dying and that it was going to get worse and worse.
So basically the banks that were...
Because these banks, if I'm not mistaken, Silicon Valley, all these banks, they had been giving out loans on commercial real estate, right?
Well, Silicon Valley Bank is a little bit different.
Tech?
Startups?
Yeah, that was their big problem.
They had a problem on the asset side of the balance sheet, but they also had a huge problem on the liability side.
So what I mean by that is if you're a Bank of America, I don't know what the percentages are, but just to keep it simple, like 90% of their depositors have under $100,000.
Yeah.
So when you're under that FDIC limit, your depositors are what they call very sticky.
Okay.
They're not likely to move over to Wells Fargo or to some other bank because they've got the ATM card.
They're kind of built into that network.
They get accustomed to it.
But when you have a lot of depositors that have over $250K, so they're not insured by FDIC, that's where you get the problems.
Because if they smell any type of risk whatsoever, they're going to take their money and they're going to move it to another bank.
So that's what happened to Silicon Valley Bank on the liability side.
But then on the asset side, they had a bunch of long-term treasuries to match up with those liabilities, which most people thought was pretty safe.
But the problem there is they bought those treasuries, let's say, at a 2% interest rate.
So then when interest rates go up to 4%, 5%, there's an inverse relationship between price and the yield.
So if the yield's going up, the price is going down.
Now, they had these in kind of a compartment of their balance sheet.
It's like an accounting gimmick.
It's called hold to maturity.
So they said, well, we're not going to price these to the market value because we're just holding these to the maturity even though the market value has gone down by...
Let's just say 50% to keep it easy.
So what ended up happening is they had to transfer all these commercial bank deposit liabilities, the money of all these tech companies, and it got to a point where they had to sell those treasuries, but they had to sell them at such a huge discount That it completely wiped them out.
In addition to that, you had all these big players in there, these whales that made up the majority of their deposits.
But a lot of those whales were these tech companies that were just burning through cash, just incinerating money.
To start up, obviously, because you're not profitable in the beginning, so they were getting loans to start up their businesses.
Or they're just selling equity.
And they're just burning through that cash.
So yeah, it's great that this new startup just raised $50 million.
But six months later, they're down to a million.
So that means that the bank has to transfer out all those million dollars that they're spending, assuming that those customers are where they're spending the money.
Those people have an account at a different bank.
So they're having to send out all of those dollar deposit liabilities.
Well, they also have to send an asset to match up with that if they don't have We're good to go.
Okay.
Right?
So you can't just say, well, it's contained to the regional banks because what's happening with the regional banks actually applies to the liquidity for even the huge banks like Wells Fargo.
Now, I'm not saying that they're going to go bust or anything like that, but it becomes harder for Wells Fargo to borrow money in the global banking system if risk is going up.
Gotcha.
Because the only thing that constrains a bank's balance sheet is Is risk, because it's all about risk-reward.
You know, people like to talk about bank reserves or, you know, Basel III, different types of regulation.
But in my opinion, with all the research that I've done in the global monetary system, it's all about risk and reward for these banks.
Okay.
If they see a way to make a billion dollars, they're going to figure out how to get you that loan.
It's why you've never gone to a bank or you've never even heard of anyone going to a bank that, let's say, wants to take out a mortgage.
And they're a perfect candidate.
They've got a 780 credit score.
They're making 250,000 a year.
They want to buy a house that's well within their means.
love to lend you this money because we're going to make a killing on this deal.
But unfortunately, we can't right now because we don't have any money left.
Wow, that's true.
Or unfortunately, we can't right now because of Basel III.
Or we can't right now because we don't have enough bank reserves at the Fed.
No bank has ever, ever, ever said that.
And there's a reason why.
It's because their balance sheets aren't constrained by anything, anything, other than perceived risk.
I look at the numbers on the screen, so for them it's like, okay, if we need to make money off of this person, it's just numbers for us?
I don't know.
Well, that's all it is.
So I think what you have to do is you have to start by asking or try to answer the question.
It seems very simple, but when you think about it, it's actually very complex.
What is money?
Right.
So what most people consider money, and I'm not going to get into the technical definition, but what most people consider money, just your average normie, is just whatever my bank account says I have.
That's money, just my checking account balance.
Okay, but we all know there's nothing in there.
All that is is an IOU from the bank.
So what we're all trading, if you go down to Chipotle or you make a payment on this studio or something like that, we're just trading bank liabilities, IOUs, amongst one another.
And it's just we've gotten to the point where we just accept that as though it's money.
But at the end of the day, it's just commercial bank deposit liabilities.
That's all that we're trading back and forth.
And what gets really weird is, so that's an IOU from the bank, but what they're saying is that they owe you a dollar, which in and of itself is an IOU from the government.
So they're saying, we owe you an IOU. And then we as Americans, just on good faith, trade that amongst one another as though it has some sort of value, and it's just literally, to your point, electronic digits.
Money, if you really think about it, is just a network of bank ledgers.
That's all it is.
Especially in a cashless society.
Yeah, and that's why if one of these banks go bust, what happens to the money?
It's gone.
Because your money was not really some sort of asset, it was just their balance sheet.
So if their balance sheet disappears, so does your $100,000 that you thought you had in the bank, but really it was just an IOU, or what we say, a commercial bank deposit liability.
So when the risk goes up in the system, and to be very clear, banks don't need money to lend.
See, this is where people get confused.
Banks don't lend money.
They create money when they lend.
That's a big distinction.
Yeah, because if we say...
What is money?
And then we kind of figure that out, you know, what the normie thinks is money is actually that commercial bank deposit liability.
Then you say, okay, well, where does money come from?
Okay, we say, well, the government prints it.
Well, not really.
That's a very small fraction of dollars are actually green pieces of paper.
So you see those digits that are in your account or what your account says the bank owes you, where does that come from?
Honestly, out of thin air.
Well, right.
They lend it into existence.
Yeah.
So if Myron gets a mortgage, let's say, on one of his new rental properties for, let's just say, $350,000, that money didn't exist before.
They're not taking money from somewhere else and giving it to you.
Yeah.
It's not like someone deposited $300,000 and then they're like, okay, we're going to lend this money out to Myron to buy a house.
No, they're simply adding $350,000 to your account, and then the offsetting asset on their balance sheet is just simply that loan that they just created.
So they didn't have to have anything to begin with.
Now you say, well, George, how can they legally...
How can they print money like that?
How can they create money?
Well, in their eyes, it's not just as though they're creating an asset, a cash asset for themselves.
They're creating a loan asset, but they're creating really an offsetting liability.
So just because it's your cash asset doesn't mean it's their cash asset, or it can be traded as an asset.
And what's also interesting is, let's say you pay off that loan.
All $350,000.
Yeah.
Then you pay it off to the bank and what do they do?
They take your account balance from $350,000 back down to zero.
So they destroy the money.
When you pay off the loan, just like they created money to begin with when you took the loan out to begin with to buy the house.
Wow.
You see, so when you understand...
I never thought of it that way.
I always thought they're giving you a loan based on money that they have from other people putting money in there, but the reality is they just created it.
So whether they had the money in the bank at all, which they're going to have it, but let's say they didn't have it.
It's like Houdini and Magic.
They're just putting it on a balance sheet.
Out of thin air.
Yeah, but most banks don't have it.
So what we have to do is we have to look at a system of...
This interbank network or the connectivity of all these bank ledgers outside of the United States.
So this is outside the purview of the Fed.
And this system started back in the 1950s.
But right now there's roughly 50 trillion in this system.
And that system has no dollars.
There's nothing there.
There's no green pieces of paper.
There's no bank reserves at the Fed.
There's literally nothing.
All it is is just bank ledger money that they created out of nothing.
So there's nothing like regulating this to, you know, have some kind of oversight where, hey, you can't lend more than this amount, or depending on the bank and how big they are, is there like no...
I mean, there's some regulations, but most of these banks just completely get around them.
I'll give you an example.
Okay.
So back in prior to 2020, we had something here that you guys have probably heard of.
It was called a reserve requirement.
Okay.
Okay.
So what this was for not all banks, but most of the banks or some of them, they were required to hold 10 percent of the deposits that they had on the liability side of the balance sheet in a cash equivalent.
OK.
So we'll just say bank reserve, something like that.
OK.
So that was the Fed's way of trying to rein them in to make sure that we wouldn't have these bank runs and to make sure that the system was, quote unquote, stable because they figured, OK, it's very unlikely that enough people are going to want their money at one time or to transfer their it's very unlikely that enough people are going to want their money at one time or to transfer their money Yeah.
Sitting in the – Yeah, the probability is very low that that would happen.
And so we'll just figure that if we make this rule, the banks can abide by it, and then we can all sleep at night.
But what happened is the banks in 1980 had $40 billion, $40 billion with a B, in bank reserves, and that's what they had for the 10 percent reserve requirement, right?
And at the time, M2, which should have been the other number there, you should have had 10% of M2, was $1.5 million.
Well, that in and of itself should have been, let's just say, 150, right?
But then M2 went all the way up to 7.5.
What is M2 specifically?
M2, basically, it's checking account, savings accounts, and currency in circulation.
Ah, okay.
That's like all the different types of accounts that the bank would have, I guess.
Yeah.
So basically when we're talking about those liabilities of the bank, where you could go down there and say, hey, I want to transfer my $100,000 to a different bank because it's in my savings account, that would be a component of M2. Gotcha.
Okay.
Sorry about that.
So you're saying, okay.
Yeah.
So M2 goes from $1.5 trillion all the way up to $7.5 trillion in 2007.
But the amount of bank reserves, it was supposed to be 10%.
That's supposed to be our safety blanket or our cushion.
That went from $40 billion to $40 billion.
Didn't change.
Didn't change at all.
Didn't change at all.
So it went down from like 10% to maybe 5% or 3%.
No, it never was at 10%.
It never was even close to 10%.
And what's crazy, too, is a lot of that was, we won't get into it, but the number in reality, in practice, was actually lower than that $40 billion.
So that's even looking at it optimistically.
Wow.
But no, what the banks did is they said, no, we're not going to play your stupid game.
If we've got a profit-making opportunity, we're going to take advantage of it.
Yeah.
So what they did is they set up something called sweep accounts.
Hmm.
Where basically they would take the checking account balances and they would move them over to other accounts that weren't technically a part or didn't technically apply to those reserve requirements.
And the Fed just kind of looked the other way because at the end of the day, the banks call the shots.
The Fed doesn't call the shots.
Gotcha.
Wow.
So the whole point there is so people realize that the only thing that's constraining banks from doing loans or—we can talk about derivatives all day long—but doing all these types of, let's just say, financial engineering to a certain extent, but a lot of it is helping the economy, assuming that it's productive lending, which is debatable what percentage of bank lending is productive nowadays.
But this is the only thing that they care about is risk.
That's it.
So my point there is if you have a Newark community bank, which is on the brink of going bust, if you have a Silicon Valley bank, a First Republic, a signature, people may say that, oh, this is no big deal because these are smaller banks and it's contained.
But what you don't understand is the amount of risk in the overall system is increasing.
So since the risk is increasing, that means even for the big guys like JP Morgan and all these banks that actually benefited from all those deposits going from Silicon Valley bank over to their bank that was perceived as safer.
Gotcha.
Right?
They are the beneficiary, but they look across the network and they say, no, no, no, we're not going to do that loan.
We're not going to make that, do that FX swap.
We're not going to do that currency swap.
Even though they got more money, the risk is still, it makes them say no.
Exactly.
Wow.
So what that is, is that creates a credit contraction that We're good to go.
And savings and checking, just a component of that.
But if we break it down even further to M1, that's almost exclusively checking account and savings account.
And you've got currency in circulation as well.
But if we just look at that as basically what's the average Joe's kind of purchasing power, like how much money do they have in the bank, right?
We see that peak out in 2022, and we see it just absolutely plummet since then.
Wow.
And M2 has actually gone down.
So people say that the Fed's printing all this money and doing all this stuff.
But if you actually look at the numbers, the money metrics are actually going down.
And if you look at bank credit, usually it just trends up like this, and it's consistent.
Until you get a recession, it flattens out a bit.
It's flattened out and just barely gone up.
That is not a good sign of economic activity, right?
That's almost a sign of economic contraction.
And to give you some context, M2 right now, now I'm jumping around a little bit.
So I was talking about M1 because that really declined.
People can pull that up on a Fred chart and see that it's just, it's really kind of shocking.
But also if you look at M2, that has declined over the past year as well.
Now to find the last time that happened, you've got to go all the way back to the 1930s and the Great Depression.
So that gives you an idea of how risk-off banks are right now, even the big guys that people think are quote-unquote safe.
I mean, I'll tell you, even for me, just for buying houses, every time I do a new deal, they're asking me for a bunch of fucking paperwork.
That you didn't have to have a year and a half ago.
Yeah, like they're asking for more and more every single time.
So I can tell you just off of, you know, obviously it's a limited and anecdotal situation, but I could do a deal and then literally a month or two later I'm doing another deal.
Similar house, similar stats, but to ask for something that I already gave them.
And I'm like, what the fuck?
I already gave this to you all.
Even the car industry.
I'm pretty good with my banks.
They trust me a lot.
I never miss a payment ever.
But it's like, they know me for these amount of years.
I never miss a payment.
And I get a pretty good dump down payment on whatever I get or rate.
Nowadays, I have to put even more with a higher rate.
I'm like, you guys know me, but hey, it's not us.
It's the banks.
So I get it.
Yeah, and Kenny, you guys remember Kenny?
Yeah, he's in the exact same boat.
He has over $2 billion under management.
$2 billion with a B. I mean, Kenny's a big player in the multifamily space.
He controls $2 billion of real estate.
That's correct.
And he's been doing this for literally decades.
And even with the banking relationships that he has, when he goes to the table to try to do another deal, they're saying, okay, well, we were giving you 70% LTV. Now, 40%.
Yeah.
And now when he goes in, let's say they give him a 7% interest rate.
So he's got to come with 60%?
No, no, no.
If he's got equity, let's say.
Oh, okay.
Sorry.
They were willing.
Let's say he had $100,000 in equity.
They were willing to give him 70.
If he wants to do a cash out refi or something.
Yeah, now they're only willing to give him 40.
Wow, that's crazy.
Yeah, and if he takes out a loan at, let's just say, 7% interest, he's having to put down like a million dollars in escrow just for the bank's buffer in case interest rates go up.
Wow.
So the bank is trying to offload that interest rate risk onto the borrower instead of keeping that on their own balance sheet.
And that's why you see, when you look at overall bank credit on the Fed's website, you see that it's going up, up, up, up, up, and now it's just straight flat across.
And again, that's not a sign of a healthy economy because...
Whether we like it or not, in a debt-based monetary system, it's kind of a synergistic relationship between the banking system and the economy.
You can't really have a healthy economy without a healthy banking system and vice versa.
So for the common folk that want to get loans for maybe property, a car, maybe any investments themselves, are you saying that it's going to be harder to get these investments going forward or even right now?
Yeah, it's getting harder.
I think most of the people on the chat would have a similar experience, unless they're getting like a Fannie and Freddie loan.
And the banks, I would imagine, are pretty consistent there because they don't keep that on their balance sheet.
They just kind of, they flip that, so they're just taking like an origination fee like a mortgage broker.
But outside of that, yes, I think loans are going to be more difficult to get.
And, you know, a lot of people say, well, what's going to be great is the Fed's going to drop interest rates.
In 2024, we're going to have this soft landing or no landing because we've seen the inflation rate go from 9.1% all the way down to where it is, let's say roughly 3.2, 3.3, something like that.
So if it continues to come down slightly closer to the Fed's target at 2%, they're going to be able to drop rates.
Well, you got to be careful what you wish for there, because if we go back and look at history, every single time the Fed has dropped or most of the times when the Fed drops rates, that's because the stuff's hitting the fan.
That's not a good thing.
That's a bad thing.
And just because interest rates are low, that doesn't mean money is loose.
That's a common misconception that you hear all the time.
Well, the Fed's going to drop rates and we're going to have loose money.
I'm sure you guys hear that, right?
Yeah, yeah.
No, no, no.
What happens usually when rates are low, money is tight.
Let me give you an example.
Damn.
In 2012, that's when I first retired and got into real estate investing.
And at the time, I was just buying these houses cash.
You know, the banks were almost giving them away.
And my kind of model that I had in Kansas City is I was going into nice neighborhoods.
B and A neighborhoods in a place like Blue Springs, Lee's Summit.
And I was buying these houses for right around $50,000.
Roughly, it was kind of my model.
$50,000.
And they're usually like three twos or...
No rehab?
No nothing?
Oh, yeah, yeah.
Oh, okay.
You rehab.
Okay.
Yeah, so then what I do is I drop out $25 on a remodel, just getting it up to where it looks good for a renter, nice, solid.
And I'd have a renter in there almost instantly for $1,100, $1,200.
And I just rinse, repeat, rinse, repeat, rinse, repeat, rinse, repeat.
And a lot of these homes, too, that I wasn't buying off the MLS in foreclosure or a short sale, I was just getting straight from the county because they were foreclosing on them for not paying their taxes.
Gotcha.
So it was just literally like a TV show where you're going down to the courthouse steps and you're bidding on it.
So I had a lot of properties like that.
But the punchline here...
After I kind of got done with this process, moving into 2013, I had about 20 of these houses that I owned outright.
I paid cash for every single one of them.
Zero loans.
And I've got a great credit score.
I'm like the perfect borrower.
And I've got renters in almost every single one of these properties.
I take that to the bank.
And back then, Fed Funds was at 0%.
So you would think that you'd have banks just throwing money at you.
I took that to every single bank in town, and they basically told me to pound sand.
They weren't interested in lending in any type of real estate whatsoever.
They were still that scared from the 2008 crash.
Right.
And so then I said, okay, I don't even want to cash out refi.
I just want a line of credit against the equity.
And I'll just take 40%.
Let's not just get crazy here.
I said, let's do 40%.
And if I draw down on it, I'll just prove to you that I'm going to build this relationship.
I'm going to pay you back on time.
And after three or four cycles of that, then maybe you can up it to 50 or 60 or something like that, a little bit more reasonable to where it's worth my while.
They wouldn't even do that.
Wow.
I couldn't get a bank to do it until, I think it was 2000, right around 2014.
And it was only because a good buddy of mine's a lawyer down there, and he plays basketball with the VP of commercial lending for one of the community banks.
Okay.
So he got me a meeting with them, and he and I really hit it off.
Okay.
And he's like, George, I trust you.
Let's go ahead and do it.
And because of that, by the way, I've maintained that relationship and I still bank with him to this day.
Nice.
That's very important.
Yeah, that's right.
I could call my guys right now on the phone.
I need a deal done.
They'll get it done for me.
I won't tell you his name, but I literally text him.
And whenever I go back to Kansas City, you know, we'll grab dinner, we'll grab lunch, something like that.
We'll stay caught up.
I mean, even if I have an issue with the account, like logging into the website, I'll just immediately text me back.
Because now I've brought a lot of people over.
Like my sister started investing there and some of my buddies from Medellin.
And they all use the same guy because, you know, we have that relationship.
So that would be another good lesson.
That's the power play.
Yeah, for a lot of your viewers, is to, right now, while you can, set up relationships with these small banks in your area.
Even if you can't afford to buy a rental property, or even if you're kind of making your way up the ladder, just start those relationships now, because they're going to pay dividends.
And also, too, I think if I would have had that relationship built back in 2012, I think I could have done the deal.
It's just I didn't have any relationships built.
It's about who knows you and trusts you.
That was probably one of the most thorough explanations of how the banking system works on fucking YouTube.
Shout out to George.
I learned a bunch myself.
That was great.
That was literally one of the best overviews I've listened to as far as how the banking system works in the United States.
Wow.
So I think another tip that I might give your viewers, and this is what I do with my own personal portfolio, is I have two main banks.
I've got that small bank where I can actually have that type of relationship with the higher-ups.
But there, you've got a little bit of risk, especially with what's going on with regional banks and commercial real estate and all these things.
Now, one of the great things about this bank is, you know, when he was basically interviewing me, I was also kind of interviewing him.
And I asked him, okay, how did you guys weather the GFC? And they didn't take a hit at all.
Like they had a bulletproof balance sheet.
Nice.
Which makes me a lot more confident working with them now.
But my point there is I separate it between two banks.
I go with a mega bank, which is Wells Fargo.
Yeah.
Because I know that even if we do have big problems, they're going to get bailed out.
Yeah.
They're too big to fail.
Yeah.
Bank of America.
They're not going anywhere.
Chase.
Wells Fargo, Bank of America, Chase.
Who else?
I'm trying to think.
Well, TD's Canadian.
But yeah, these banks are all too big to fail.
But there's a caveat there, though.
They're a big bank that can't fail.
However, personal relationships aren't that well laid out.
That's right.
So that's why I have two banks.
I've got one for the personal relationship, and then I've got one for the too big to fail.
And then I kind of just divide it from there.
So that's my personal strategy that, again, some of your viewers might use.
But that takes us up to the BTFP, which expires March 11th.
We talked about the whole banking system.
We talked about how...
It's not really about regulations.
It's really not about bank reserves.
It's really not about cash.
It's about risk.
And we see that risk going up and up and up.
So then the question becomes, what happens March 11th when they kind of do the rug pull on the BTFP? Now, if you would have asked me a month and a half ago...
So is basically the federal government going to stop supporting these regional banks that kind of took a downslide?
Is that what's going to happen on March 11th?
The Fed's just ending the program.
The bailout.
Yeah.
They're ending the program.
So they're taking the training wheels off for these banks.
What does that mean for the common folk, though, like us as people?
What does that mean for us?
Well, I would be very...
I would make sure you don't have over $250,000 in your bank account.
There you go.
Make sure it's insured.
Yeah, with those banks.
Yeah, I mean, look...
Okay, so let's break this down.
Let's assume that you have $100,000.
You're good to go because that's going to be insured.
And at the end of the day, even if FDIC can't cover it, Janet Yellen is going to step in and figure out some way so the depositors, especially under $250,000, don't take a haircut.
That is an extremely low probability.
Yeah.
But let's just say that you're someone with a million dollars.
Okay, well now what do you do?
And let's just say that you've only got two banks.
And let's just assume for a moment that you can only break that down into two accounts.
So you've got $250 over here, you've got $250 over here, but you've got another $500.
What do you do with it?
In my view, you put it into T-bills.
Treasury bills.
Yeah.
Hold on.
What about crypto?
No?
No, no, no, no, no.
Because this is just your cash.
This isn't what you want to use as a speculative play or an investment or anything like that.
I'm just assuming that you want this in cash.
Got it.
Okay.
Right?
So if you want this in cash, you can't get that FDIC insured.
Or you have to jump through a lot of hoops to do it.
So an easier way to go about that, and I think a safer way, is to just buy like a one-month T-bill or a three-month T-bill and continue to roll it over.
Because the $250, your counterparty is the bank.
We talked about that.
They don't have the money.
It's just an IOU. So if they go bust, your money's gone.
It disappears.
Poof.
That's right.
But with a T-bill, your counterparty is the government.
And if we want to talk about too big to fail, I would argue that the J.P. Morgan will go bust before the U.S. government will.
Even if they're technically insolvent, they're still not going anywhere.
So that's a way that you can have that type of insurance and sleep well at night, even if you, let's just say for whatever reason you're running a big business and you want to have, let's say you're Kenny.
Mm-hmm.
Okay, well, he could spread that out through a million bank accounts and have to go through all those logistics, or he could just have a couple main accounts, dump it in there, go to T-bills, like one-month T-bills, and if he needs the liquidity, his CFO can go ahead and sell those T-bills, goes right in the account.
You're never at the max threshold, and then you don't have to worry about that...
Whatever, that's $9.5 million not being insured, or you don't have to worry about that counterparty risk, especially when we're likely in inning four or five of a rolling banking crisis with the BTFP expiring in two days.
Gotcha.
How fast does the money come to your account from T-bills?
Is it like a five-day wait?
No, no, no.
Instantly?
No, that's why they're the most pristine collateral in the banking system.
Because they're the deepest, most liquid market in the world, literally.
Wow.
Yeah, you just call your guy, your manager.
You don't even call your guy.
You can just press the button and boom, it's done.
Okay.
I mean, just instantly sell it.
You're going to have more liquidity there than you're going to have in any other asset in the world.
So I go on the Fidelity app and just, like, buy it that way?
Well, so...
I don't know which brokers.
Some brokers, it's that easy.
Some brokers, they don't deal with T-bills.
Okay, okay.
I don't know which do and which don't, so I don't want to give anyone any advice there.
But a lot of them do.
So you just got to do the homework.
And if you want to incorporate that into your overall financial strategy, just go ahead and set up an account with a broker who can make that happen.
Awesome.
Like an online broker.
That's some good advice, man.
Yeah, I know.
Merrill Lynch, they'll do it for you.
You just call them and they do it for you.
And they probably set up a thing where they just roll it for you, too.
Yeah.
Like, you just say, hey, I want the one-month T-bill, and just, like, automatically roll it.
So how does that work?
Like, let's say you want to buy $10,000 worth of T-bills.
Yeah.
Like, you buy the $10,000, does it just hold at that value of when you purchased it?
Do interest rates play a role in it whatsoever?
Does it go up?
Does it go down?
Like, does it...
How does that...
Yeah, so the only way interest rates play a role is if you sell prior to maturity.
So let's say you have a one-month T-bill.
Just to keep it easy, let's just say it's $1,000.
So what you would do is you would buy that for like $995.
And so they don't pay you like an interest rate over the next four weeks.
It's just you buy it for like $995.
And then when they pay you in a month, they give you $1,000.
Gotcha.
Wow.
So that's the...
If you're going to liquidate.
Well, no, just it's maturing.
Oh, okay, okay.
So they're going to pay you in full if you don't sell it in the interim.
Okay.
Right?
So there's nothing that gets...
It's a way to basically freeze your money so that if anything happens, you don't lose it.
And you don't have any counterparty risk.
And you're betting on the government, not the bank.
Yeah.
Yeah, that's right.
So anything over 250, that's probably the smart play that you have.
All the super, super smart guys that I know, that's exactly what they do.
Even if they're below 250, they do that?
No, I'm talking about the Kenny types, where that would really apply.
Because for that, you need a bunch of money sitting in an account because things need to get fixed, mortgages need to be paid, etc., if you got debt on some of the properties.
So yeah, I mean.
Yeah, with Kenny, I mean, he's got someone managing that.
Of course.
He's got someone managing that cash flow for him.
So, you know, that's their job.
But with someone that even wasn't at that level, it's not that labor-intensive if you're not running a $2 billion multifamily portfolio.
Yeah, yeah.
Shit.
We could hit some of these chats real fast.
Guys, if you can see here, expert in the house.
So if you guys got questions, now's your time to get them in.
Because typically, what do we hear?
Put money into crypto.
But this is different because it's backed by the government.
Yeah.
Safe.
It's safer.
Yeah, I mean, look, your expenses are not denominated in crypto.
Yeah.
So you have massive volatility risk.
So I'm not saying that I don't really like crypto.
I think everyone should own Bitcoin, but that's to have purchasing power outside of the system because then we get into the realm of central bank digital currencies, which I think are simply a matter of when, not a matter of if.
So if you don't want the government knowing every single transaction that you make, you probably want to have some Bitcoin there.
Also, one thing that I'm doing for my channel in April is I'm doing what I'm calling a CBDC road trip to freedom challenge.
Where I'm driving from Santiago, Chile, down over into Argentina, and then over to Buenos Aires.
In what car?
Well, I'm renting an SUV for it.
Okay.
But the whole, you know, it's going to be about a three-week trip.
And the objective of the trip is to do the whole thing with every transaction being outside of the monetary system.
So I'm going to try to use only Bitcoin, gold, and silver.
And that's the challenge.
And why it's Buenos Aires is because that's where my good friend Doug Casey is.
And if you know Doug Casey, he's very well known for his views on freedom and liberty.
Legendary.
He's an absolute legend.
That's right.
So that's kind of our objective is to get from Santiago down to Kind of the tip of South America, then go straight back up through Argentina to Buenos Aires to meet Doug Casey using nothing but gold, silver, and Bitcoin.
But the point there...
Is that when I'm buying gas or getting a hotel room, that's going to be denominated in the local currency.
So you're subject to whatever Bitcoin may do that day, which as of right now, it can be incredibly volatile.
Well, a lot of people, although that might be a great speculation long term, or some people might consider that investment, and I totally see the argument for that.
I think that's a great...
It's a matter of when to buy it.
That's a completely separate issue.
But it makes sense, I think, to have that in the speculative side of your portfolio, Bitcoin, none of the others.
But to have that in just your daily working capital for a business, that makes no sense whatsoever because the volatility is just so high.
No business owner is going to do that unless their expenses were denominated in Bitcoin.
And unfortunately, we're just not there yet.
So that's why you've got to compartmentalize all these things.
You can't just say, what should I do with my money?
No, it's what should I do with my portfolio?
And then within my portfolio, you've got insurance, you've got investments, you've got speculative plays.
And then what should I do with my cash?
How much cash should I have?
And if you're a business owner, how much working capital should I have?
Those are all three completely separate questions and three completely separate strategies.
That's a good breakdown.
Alright, we got Jaleel, right?
Jaleel says, oh no.
Yeah, Jaleel says, hey George, FNF, just need some advice I previously mentioned before that I'm looking to invest and start my own multi-million dollar company and since we are in digital world, I'm looking to start it up on my own website and start my eBay store.
Any tips?
Create content.
Yeah.
I mean, look, I was just telling the guys prior to recording here that I didn't start creating content really on YouTube until, I think it was August or September of 2019.
And now, as far as in the macro space...
I don't know anyone other than maybe Schiff or Mike Maloney who are good buddies that have more subscribers or get more views.
You know, I've done that all, and it's not because I'm great or anything.
It's just because I work my...
Fucking asshole.
Yeah.
And the whiteboards.
It's not just the whiteboards.
It's the live streams.
I was telling the guys, I was looking at my YouTube analytics the other day, and since I started in 2019, I've done over 3,000 YouTube videos.
Wow.
That's crazy.
And that doesn't include all the podcasts and everything.
I mean, it's just been an astronomical amount of content.
But I wouldn't trade it for the world.
Because now I get to sit here and have great conversations with guys like you and Kenny and Kiyosaki and all these incredibly amazing, gifted, intelligent people that I get to talk to almost on a daily basis.
But...
I was able to build that, not because I'm anything special.
And keep in mind, I almost flunked out of high school.
I've never taken an econ class.
I've never taken a business class.
I've never taken a finance class.
Zero.
This is all completely self-taught.
From experience.
That's right.
So if I can do it, you can do it as well.
And whatever type of product you're selling, I would just start creating content on that.
Did you guys just see the deal that...
Joe Rogan?
No, what's the kid that does all the electronic stuff on YouTube?
Oh, the black guy?
Yeah, Marquis Brownlee.
Marquis Brownlee.
Yeah, he just did a deal with Ridge, I think is the company.
Ridge Wallet?
Yes, that's right.
Ridge Wallet.
And they brought him on, they gave him a huge equity position.
And so now he's part owner of the company.
He's on the board of directors.
And this is a company.
This is not a little company.
I didn't realize how big they are.
They do like, I don't know what the exact number is, but it's like $200 million in revenue per year.
And they're on pace to be a $1, $2 billion company.
And so, you know, look at what he's done just through creating content.
And now all these brands realize, and I was listening to an interview with the CEO. And he said, look, we tried to create content and we learned really fast that we suck.
It doesn't fit.
And we learned really quick that it's hard.
Yeah.
Like for all you guys watching out here, this looks easy.
It isn't.
Try it sometime.
Try it sometime.
But that's what the CEO had to learn the hard way.
So if you can start your eBay business and you can start getting good at YouTube or creating content, because we all suck at the beginning.
Yeah.
I mean, let's just be honest.
You guys, I'm sure, went through that same learning curve that I went through.
If you look at our first video, they all suck.
Yeah, of course.
So if you can just suck right now and get that out of your way and start to get good, and then you can use that to complement your eBay store, you're going to have a massive edge.
I'll tell you this.
Streamers nowadays are seen as the golden ticket.
Kai just signed a deal with Nike.
Huge deal, by the way, as a streamer.
Oh, they were talking about that.
That's incredible, by the way.
Only LeBron has a deal like that that I heard of.
Yeah, they were actually comparing that deal to the one that Marquez Brownlee got with Rich.
Yeah, and that's a streamer.
That's dope.
Yeah, I didn't realize he was a streamer.
I didn't know who he was.
Yeah.
Okay, call on Tyrone says, I'm building my online thumbnail agency on a desktop PC 24-7 and keep getting carpal tunnel.
How do I prevent this without cutting my arm slash productivity?
Also, how do I repair it fast?
Wow.
Carpal tunnel.
That's when you type a lot on your game when your hands get brittle.
That's actually, I mean, it sounds kind of funny, but it's not.
It's a real problem.
In fact, I have been in the computer, in front of a computer so much over the last four years that I actually have a herniated disc.
And my neck.
And I've been having to go to physical therapy quite extensively to try to work on that.
And that's one of the reasons why I'm taking this week off, because it's just, it's killing my neck.
I mean, it sounds ridiculous that we would actually get injured from doing this stuff, but it is quite taxing on your body to sit here for 12 hours a day in front of a computer.
People forget the tech industry.
You're in front of a computer almost all day.
All hours of the day.
Yeah.
That is a lot of strain on your neck, your fingers, your mental health.
And it's a lot.
You got to do it, honestly.
Yeah.
I mean, I would just suggest to that person, you got to take care of your health first and foremost.
Because this is, you're playing the long game here.
Yeah.
This isn't something where you just start, you do really well over a year, and then you just set it and forget it.
It's something that you build a brand with.
And how long have you guys been doing?
What, three years?
Three years now.
Yeah, so this is something that it's not a three-year play for you guys.
You guys are going to be building your brand for the next 10, 15, 20 years.
So you've got to realize that.
Trying to survive, though.
You're trying to survive, but you just realize that you're playing the long game.
And if you need to do what you need to do right now to take care of your health, that should be priority number one.
Because the worst thing that you can do is just fade off into the distance like we see so many YouTubers do over two, three years because they get burnt out.
They just can't handle it anymore.
Yeah.
We got here.
What's up next?
Jaleel says, and should I get a small loan for the startup or should I save up some money on the side?
Not sure if all this is up your alley, but any advice you can share would be golden.
I want to start an athletic and casual apparel and accessories business.
Yeah, so I can tell you what I did when I got out of, well, how old was I? This would have been in 97 or so.
And so this was the first business I started, which was actually kind of a t-shirt business.
And I was in Las Vegas at the time.
So I thought, look, I don't want to risk it by taking my life savings, which was basically nothing back then.
So I thought a better approach here, because I don't know what the hell I'm doing, is get a job.
But hopefully I can get a job working four days a week so I can have all this time to allocate to the business.
So I can have this steady stream of cash flow coming in.
So I don't have to worry about paying my rent.
And I've got this additional income that I can allocate directly into the business in addition to the savings.
And you've got a bit of a buffer there.
And you can sleep at night knowing that you're not going to worry about your next meal.
So what I did in Vegas is I actually got a gig working valet.
And I worked a graveyard shift at the Nugget.
And so my shift was from 10 p.m.
to 8 a.m.
Wow!
So I'd work four 10s.
And back in the day, it's probably not like this now, but they gave you free food.
So I'd go there at like 9.30.
I'd eat.
And then during my shift, I'd get a break.
I'd eat again.
And then when I got off, I'd eat again.
So I could eat all three meals at my work for free.
And then I was getting all the tips from the valet.
And then when I got home, I'd work on my business for like four or five hours.
And I just crash and sleep from, you know, whatever, two in the afternoon to six or something.
And then I just go and I do it again.
And I'd have three days off to where I could allocate 100 percent of my time and energy into the business.
So that might be something you'd want to consider is getting a normal gig.
And then just, hopefully it would be a gig that was somehow similar to what you wanted to do with your own business so you could kind of learn on the job, but then you just build up your side hustle on the weekends and to a point where you're making more than your day job and you just kind of cut the cord.
That's exactly how we tell them to stay away from, yeah, that's exactly what we tell them.
That's really smart.
There you go.
Ted goes, George, if money exists on ledgers and the bank can just, and guys, we're reading 20 enough from this point forward, but I'll read the ones that came in before.
George, if money exists on ledgers and the bank can just create it, why does risk matter to them?
Are the liability tracked beside on the bank ledgers?
Is it risk of default?
Yes, risk of default.
So when they're creating that ledger, or excuse me, when they're creating that quote-unquote money, it's a liability of theirs.
So the offsetting asset is the loan.
So they've got to be very careful about that, because if they don't get paid back, They're going to be the next Silicon Valley bank.
So even though they can quote-unquote create money, they're highly incentivized in a free market.
I should preface by saying in a free market where they're not getting bailed out and all these things.
But if we had a free market where the Federal Reserve and the central planners weren't stepping in, they're highly incentivized to lend productively.
And that's actually a good thing, because that's like what we saw in the late 1800s, where we saw M2 money supply go up by 150% from 1870 to 1900.
Which, to give you some context, is the exact same increase in M2 that we've had since 2008.
So most people think that, you know, money, printer, go brr.
It was actually the exact same in the late 1800s.
But I'll tell you the big difference.
Between roughly 2008 and today, we've had about, I forgot right off the top of my head, about 125% consumer price inflation, if you compound it, you know, every single year since 2008, roughly.
If you look at, I think exactly it's 1885 to 1900, about a 15-year period, so we're comparing kind of apples to apples there.
They had the same increase in the money supply, but they had almost 50% deflation.
Wow.
50% deflation.
So prices over a 15-year period went down by 50%.
Can you imagine the benefit that would accrue disproportionately to the poor and middle class?
So you're working a job, a McDonald's job, right?
Let's say for the next 15 years, and you're making $1,000 a month, you're barely covering your expenses, and you only get a couple raises.
So in 15 years, you're doing the same thing, but you're making $1,200 a month.
But now, instead of your expenses being $1,000 a month, now they're only $500.
Yeah.
Now all of a sudden you've got all this extra cash at the end of the month and you're doing the exact same job at McDonald's and you've barely gotten a raise.
That's why productive deflation is so beneficial to the average Joe and Jane.
And in my view, that's what you would see even with the type of banking system that we have set up.
Where they're able to create their own money, which they were.
We're on a gold standard, but they're still creating their own money back in the 1800s.
It's just the government and the Federal Reserve was not in the equation.
It was a pure free market.
Gotcha.
Good questions, guys.
We got here, Leon Phillips says, George, big fan of the rebel capitalists.
Do you have an event in Miami this spring, right?
Orlando.
Yeah, Orlando.
May 31st through June 2nd, Rebel Capital Slive.
Okay.
So Rich Cooper's going to be there.
Yeah, yeah, yeah.
Yeah, super stoked.
Yeah, he's going to be there because he's going to come and do a pod with us as well around that time.
Yeah, we've got all the big macro guys and gals and we're going to have gold people there and Bitcoin and real estate.
May 31st to June 2nd in Orlando.
Okay.
So if they want it, they can check out rebelcapitalslive.com for more information.
Maybe we'll pull up then.
We'll see.
It's not far.
Yeah, Orlando's not that far.
It's an hour flight.
Yeah, you guys are more than welcome and hang out in the green room.
The last one was fun.
Yeah.
The last one that you had here in Miami was fun.
They're all incredible.
They're all absolutely amazing.
Thank you for having us on that one, too.
It's good for networking as well.
Yeah.
We might pull up.
Yeah, I'm sure Kiyosaki, you know, Kenny's there every single time.
You get to rub elbows with some people that are really, really smart and really influential.
We should bring equipment and just film some pods up there.
Good.
If George is cool with that.
Yep, absolutely.
Okay, Leon Phillips goes, George, big fan of the Rebel Capitalist.
Question, knowing all the craziness going on in the world and all the paper currencies have failed since the Tang Dynasty, how long do you think we have before the U.S. dollar goes bust?
Shout out to FNF. Good question, man.
Yeah, with the threat of BRICS and everything else going on, what's your estimate here?
So, this can take us down a really interesting rabbit hole.
Yeah.
How much time do we have?
You know what we can do?
I'll read the other ones, and then we can go down that road.
This actually does apply directly to the banking system, and I think it would really kind of just complete the circle that we already started.
Perfect.
Then this is what I'll do.
I'll read the rest of them and then we can get into that.
Sure, let's write that down.
Because that is actually a very good question.
And we got to save right there.
Jay from FX goes, please check your email for paid collaboration.
Love the money Mondays.
Jay from FX. I don't know which email you send it to, bro.
Leon Phillips goes, oh no, read that one.
Jay from FX. Nope, he's...
Can you guys have a calisthenic specialist on a show that doesn't work out in gyms or lift weights?
Also nutrition would be cool.
Austin Dunham is in town.
Maybe I could bring him on for y'all.
He's a calisthenic specialist.
Just an idea.
I vote no chat and top left when guests like this are on.
The public opinion is distracted from this powerful wisdom sending love FNF. Law of destruction.
Oh, law of destruction.
Oh, okay.
I get what you're saying.
With the discussion of meaning of money, does that mean that tools like 401k are literally dependent on the feeling or confidence of the people?
Why are promises of such social security had to be supplemented by 401k, which itself is now not seeming adequate for financial security in 30 years?
Okay.
Hey Martin, recently bought a Glock 19.
Any drills you did to help you while you were in with the government?
I'm trying to become proficient.
Focus on drawing from wherever you carry your gun.
Dry firing, obviously.
Don't do it with the fucking magazine in there, please.
Do it with a completely empty gun, nice and safe, and just draw from where you normally would be.
Take yourself in like, you know, sitting down, maybe in a car, standing up, positions that you would be in normal life, and just draw from there and work on your speed.
Let's see here.
Pudi Tangos.
With open market operations, do you think quantitative tightening is an effective practice in the long run?
No.
I don't think QE or QT is effective because you're simply just trading treasuries for a cash equivalent, which is a bank reserve.
So I don't want to get into technical terms, but short answer, no.
I don't think the Fed's balance sheet matters at all.
What kind of name is that, bro?
You never watch Booty Tang?
Yeah, they're making jokes.
You never seen Booty Tang?
Let's keep going.
Yeah, troll names.
What else?
You already need to get an airline cargo pilot on Money Mondays.
Pilot shortage is estimated to last until 2027 when we estimated 10,000 pilots needed.
Pay and benefits one year is six figures.
Yep, yep, yep.
You know what?
I think...
Okay, we might have a guy that I could get.
That's a pilot.
Someone...
This guy is spinning facts.
When the Fed funds rate drop, interest rates usually an economic correction happens.
Look at the Fed funds chart.
It's been like that since the 1960s when we started recording it.
Yep, that's right.
Again, Tango says, you are very wise.
What economical principle theory do you support, such as Keynesian classical...
Keynesian.
Oh, Keynesian.
Classical laissez-faire.
Laissez-faire monetarist.
Yeah, I don't really subscribe to any of the schools.
I mean, philosophically, I'd probably be most in line with the Austrian school, but I don't agree with a lot of the things that they say.
I think that's one of the...
My greatest attribute, yeah, I think that's one of the biggest advantages that I've had, is that I had no training whatsoever.
So I just had to use common sense, and I just had to say, okay, well, let me figure out how this works, and then come to my own conclusions.
And then I read about what the Austrians say, and I say, oh, that makes sense based on how I view it, or maybe that doesn't make sense.
So I don't really subscribe to any school, but again, philosophically, all about freedom, liberty, and free market capitalism.
Okay.
Anything else, Bills?
Two more.
Okay.
And then we can go down.
Was there anything else?
Because I know the U.S. dollar reserve currency is a big question.
Was there anything?
I know you had written down a list of things you want to hit.
Oh, a ton of stuff.
We could go over what I think may be good buying opportunities over the next year, if you want to.
We can talk about people looking at the yield curve.
But I think we probably mentioned that last time.
I think I just mentioned, just for people, that you want to look at not just what's happening in the United States, but globally.
Japan.
It's officially in a recession.
UK in a recession.
Germany in a recession.
And if you go back to the 1960s, like the gentleman was saying, the UK and Germany have never been in a recession without the US joining them.
Just kind of an FYI. That's how globally connected everything is.
And one of the arguments that you hear in the United States all the time is, well, it's impossible for us to have a recession because we've got low unemployment and the stock market is at all-time highs.
But if you look at Japan, low unemployment, stock market at all-time highs.
Wow.
UK, Germany, ditto.
Stock market at all-time highs are very close to it and low unemployment.
So that doesn't mean that we're out of the woods yet.
Does that show that the rich are getting richer and the poor are just staying poor?
Is that disparity just widening with those two things going on?
That's one of the, you might say it's an intended consequence, but that's one of the knock-on effects for sure.
But really, I think in today's day and age where everyone is so hyper-focused on what the central banks are doing, I had a great conversation with my good buddy, he's MacroAlpha on Twitter, but he said, in today's world, bad news is good news.
Until the bad news gets bad enough, and then bad news is bad news.
So what he's saying is bad news is good news because, oh my gosh, that means the Fed's going to drop rates.
It's all about rate drops, right?
Until the stuff really hits the fan, and like, oh my gosh, it's so bad, it doesn't even matter what the Fed's doing, it's still crashing.
And that's exactly what we saw in March of 2020.
It's exactly what we saw in 2008.
And the reason I keep saying that is I want to be very, very clear.
There are no certainties.
Of course.
All we have is a game of probabilities.
So you've just got to look at all the data and say, what's your base case?
Is this a 60% probability, 70%?
And this is not George Gammon talking.
It's just simply the yield curve.
So all your viewers have to do is just watch the two-year treasury yield, watch the 10-year treasury yield.
Right now, the two year is higher.
That's the inversion of the curve, which almost every single time going back to 1950 has resulted in a recession.
So you just have to watch that like a hawk, and when that two-year treasury yield drops under the 10-year, it's no longer inverted, that's when you usually have the problems.
Is there a website we can show the people real fast that displays this?
Yeah, you can just pull up a CNBC of each chart, or you can just go to the FRED website, which is the St.
Louis Fed.
Can you just type that in real quick, Bills?
Because I want to give them a visual so they know.
Yeah, if you just type in 10-year, 2-year, F-R-E-D, it'll show you the spread on one chart.
10-year, 2-year, Fred.
Fred, and we'll pull it up here on screen and George can...
Yes, so just watch that like a hawk.
And another timing mechanism that you can use is watch the dollar on the DXY. Right now it's about 103 or so.
And usually what you hear...
Is that it?
There you go.
Yeah, and you can go back even further.
Okay.
And see, go to, in the upper right there, it should say max.
You see in the, there you go.
Yep.
So there you can see what I'm talking about.
Here, we can enlarge a little bit.
Okay.
Okay.
Yeah, you get that inversion, and you see when it—it doesn't usually hit the fan when it's still inverted.
You see that?
Okay.
Because when it goes above that black line, that means it's no longer inverted.
When it's below the black line, it's inverted.
And then the shaded areas, guys, are recessions.
Ah.
Okay.
So where we are right now, 2024, we're at the—where are we at here?
You're at the end.
We're right— Yeah.
That's right.
We're right around here.
And see how it's un-inverting?
Yeah.
It's below the black line right now.
But it's still below the black line.
So all you got to do is just watch that.
And again, the stuff could hit the fan now, or it could never hit the fan.
You don't know.
But it's most likely to hit the fan after that curve is no longer inverted.
Pull it back up, Bill?
So I guess if we're going to keep it nice and simple for the audience, they should be looking at this, and when it's below the black line, what should they be focusing on from a financial standpoint?
Just be careful.
If they're in the stock market, I'm not saying sell everything or sell the stock market.
I'm not saying it's going to crash and all these things, but just be careful.
Be careful.
Like what Kenny's doing right now in his business is he's still looking at deals, but he recognizes the macro implications and the probabilities.
So he's not going out there hiring a bunch of employees.
He's not getting super, super aggressive.
Gotcha.
He's tightening the belt.
He's seeing if he has any redundancies in his staff.
And if so, he's taking care of that.
He's getting as efficient as possible with the payroll and all of his outgoing expenses.
And then he's just going after deals that he sees a lot of upside.
Because he knows that it's all about risk-reward.
And right now, that risk side of the equation is substantially larger than it would be if the curve was normal and just steep.
Gotcha.
Okay, so to keep us up for the audience, if we're below that black line, guys, be wary of what you put your money into.
Yeah, and again, it's likely not hitting the fan when it's under that black line.
So why is that?
That's a good topic because usually what happens is the Fed is behind the curve and the Fed will start dropping rates because of some sort of crisis or because of recession, unemployment, spiking, something like that.
And the Fed dropping the front end of the curve is what makes the curve un-invert.
Because remember, you've got the two year and you've got the 10 year.
Right now the two year is above.
That's very abnormal.
So what happens is once we see unemployment- Can you come closer to the mic just a little bit?
Once we see unemployment, as an example, start to go up, let's just say, or we have, let's say, the banking crisis play out.
We get into ending nine of the banking crisis because of commercial real estate, or we see something escalate in the Middle East, or Taiwan, China, something like that.
Ukraine, Russia.
Yeah, and then this impacts the United States.
Unemployment rate goes up.
Fed comes out and says, holy cow, we've got to do something.
So we're going to drop interest rates from 5.25% down to, let's say, 2%.
And so what does that do?
That makes the two-year treasury drop below the 10-year treasury.
The curve, uninverts, goes above that black line.
That's why the stuff usually hits the fan after that, because the result of the uninversion is a result of the Fed dropping rates as a response to something negative happening.
Wow.
Okay.
Damn.
Okay.
Great, man.
Guys, like the goddamn video, man.
That's all I can say.
Whenever we bring George in, I'm always learning.
I'm learning right now.
Yeah, man.
Sometimes I'll watch our episodes back because I'm like, oh, that was a lot of good information.
So I guess we could hit the...
Anything else, Bills, before we hit the dollar situation?
I thought we had two more.
Oh.
I know we each have the same amount of hours in the day, but I'm struggling to transition into making my hours the most productive.
What did each of you do or didn't do to get to where you are today?
I mean, bro, I hate to say it, but I've done it.
If you want it bad enough, bro, you're going to make time for it.
What's important to you?
For me, it's all about routine.
It's about routine, and it's about, I'm in the position where I can delegate pretty much everything.
Like, I've got a gal that does all my cooking and cleaning, so I don't have to worry about that stuff.
That really helps out a lot.
And then just making sure that I'm physically fit.
So physically fit.
Stay fit.
Eat well.
Routine.
Get sleep.
And if you can, delegate just the minutia.
Go ahead and do it.
And that's the way that I've found I can maximize productivity.
All right.
Top Shea goes, Hello, George.
How are you?
What are your thoughts about bank CDs?
Sounds a shame?
They're not too bad, but you're...
What's a bank CD? So you're saying, all right, bank, I'm going to give you my money for a lockup period of a year.
Okay.
And so then the bank can go and do what they want.
But they're...
Putting that into play into repo and a lot of...
They're taking quite a bit of additional risk for not that much more interest.
So what I would prefer is just a short-term T-bill because I think you could get an even higher rate on a one-month T-bill and then you just don't have the counterparty risk.
T-bills, okay.
All right.
Okay.
All right.
And then this dude, DG Build.
Okay.
They deserve less.
Fantastic.
Hey, George, what is your opinion on SEG, mutual funds, insured funds?
I'm not sure if this is offered in the U.S., where 75% of your investments are insured by the insurance company's pros and cons.
Thanks.
Well, okay, so the problem there is now your counterparty is the insurance company.
So what if the insurance company goes bust?
Yeah.
Because back in the GFC, you know, we had AIG Insurance.
You guys probably don't remember that.
But they got caught up in this whole thing because they were not only involved with derivatives, but they had a lot of people were buying insurance policies just to make, let's just say, a mortgage-backed security look like it was AAA-rated.
So, oh, look at this, this piece of toxic sludge.
But look, Walter, it's AAA rated.
So you should buy it.
I mean, it's fully insured.
Fully insured.
You've got nothing to worry about.
Right.
But then if the insurance company goes bust, well, now all of a sudden you've got something to worry about.
So you've still got this similar type of counterparty risk within the financial system.
And I would just, especially if it's with my cash position, I would just prefer to have as little risk as possible there.
Okay.
So did you want to hit anything with Taiwan and China and Ukraine before we covered the dollar thing?
No, that's totally—I mean, who knows where that's going to go.
It's just something to think about.
It's just—you've got to look at everything in totality.
Yeah, when there's conflicts.
Yeah, you've got to look at what's going on with the geopolitical stuff.
You've got to look at what's happening—oh, by the way— It's an election year, too.
Yeah, and in China, they've had the most deflation that they've had in the last 20 or 30 years, like in decades.
Really?
So yeah, they're saying that they still have nominal GDP growth, which means they're technically not in a recession, but they're just having literal, not disinflation, but deflation.
And I don't know how a modern economy can have outright deflation and not be in a recession or an economic depression.
So I think that China is going to be something to really watch in 2024, and that could obviously spill over into the United States.
You've got to ask yourself when you're looking at risk.
Okay, we had a real estate problem in the United States.
That's what the GFC—that was kind of the catalyst.
It was really about the monetary system, but that was the catalyst to it.
And that spread out throughout the entire world.
Okay, well, if that can be centralized in the United States, why can't a real estate problem in China do the exact same thing?
If you understand that interplay and the interconnectivity of the banking system that we were talking about before, you see how something happening in China can increase risk.
Just like Silicon Valley Bank, which makes all the U.S. banks pull back, which tightens liquidity, and now all of a sudden, people start laying off their workers and doing all these things because they're going to the table, they're asking for more money.
The banks, right?
They can't get that liquidity that they could, and then that trickles through the economy, and that could be something that takes you into recession.
It's just all these risks that you need to be cognizant of.
I'm not saying the world's coming to an end.
I'm saying don't bury your head in the sand, and that's what 99% of investors do.
Yeah, you've got to pay attention to the conflict because they absolutely affect the markets.
I remember when the war first popped off with Russia and Ukraine, lumber and just house-making tools went up in price, which obviously increased the cost of homes right away.
Small things like that definitely can affect you.
The U.S. dollar going bust.
We go back to I'm a bank.
I give you a loan for $500,000.
So I increase your account balance by $500,000.
So now you have $500,000 as an asset, but you also have a liability because you've got to pay that loan back.
So that loan would be a liability on your balance sheet, and it would be an asset on my balance sheet.
Right?
So then what happens the next day?
You say, oh, actually the deal fell through.
I don't need the money anymore.
So I'm going to go ahead and pay off that loan.
So you give me the $500,000.
But you're not giving me $500,000.
All I'm doing is taking your account balance or the IOUs, the commercial bank deposit liabilities, from $500,000 all the way back down to zero again.
So we just created $500,000 and then we destroyed $500,000.
But why was that $500,000 destroyed to begin with?
Because by me lending you the money or lending it into existence, there was $500,000 in demand that was also created.
Why?
Because let's say you would have spent that $500,000, but now to pay me back, you've got to get $500,000 from somewhere.
So you have demand for $500,000 to pay me back.
You see?
People have to understand that concept.
So once we understand that concept, now we take it outside of the United States.
And we realize that 99.9, I mean, it's close enough to 100, to say 100% of the dollars outside of the United States were lent into existence.
The same way that we just talked about.
So let's just say that there's $50 trillion outside of the United States.
We look at an aggregate balance sheet.
So assets would be $50 trillion cash.
Liabilities, $50,000 that they have to pay back in loans.
So what happens, let's just say that Saudi Arabia dumped their dollars.
This is the narrative.
Oh, they're going to dump the dollars, and then the dollars, they're going to have nowhere to go because demand for dollars is going to go down, and then those dollars are going to circulate.
That's going to put downward pressure on the dollar.
The dollar is going to crash.
But if they dumped their dollars, what does that do to the demand for dollars that That are on the liability side of that balance sheet that created them to begin with.
The punchline doesn't change at all.
So let's say I'm Saudi Arabia, and I'm like, I don't want these dollars.
I don't want to do my oil deals in dollars anymore.
Yeah, no, no.
So I'm going to buy rubles.
They go to BRICS. Yeah, whatever.
The BRICS currency.
So they sell those dollars.
Well, Myron, you buy them.
Right?
So the asset side, it's still the same, 50 trillion.
It's just the dollars have changed hands.
Okay.
You see?
But now you bought those dollars because you owe 10 trillion dollars.
Right?
That's how the money was created to begin with.
Gotcha.
Okay.
It's just it circulated and changed hands.
You had it to begin with.
Now it went over to Saudi Arabia.
But now your loan is due tomorrow.
So you're like, holy cow!
I don't have any dollars.
And I've got to make this $10 trillion payment tomorrow.
So I have to buy these things.
Great.
Saudi Arabia is selling them.
You buying them.
Who would buy it, though, if Saudi Arabia was to drop the dollar?
Whoever owes the dollars.
Oh, okay.
People that are in debt to the United States.
No, just remember, this has nothing to do with the United States.
It's just when the dollars were created, they were lent into existence.
So somebody owes $50 trillion.
Somebody owes, or obviously, multiple entities would make up that.
But there's some entity that owes $50 trillion.
So even if Saudi Arabia dumps $10 trillion, that doesn't matter.
It just goes to someone...
That owes the $10 trillion.
Gotcha.
So then the question becomes, what's the maturity of the debt?
That's key, right?
Because if the maturity of the debt, let's say, is 30 years, well, okay, now all of a sudden, you're buying those dollars from me, but your loan payment isn't for another 30 years.
So you can spend that money however you want.
You can buy real estate in the United States.
You're not worried about that because your, let's say, your balloon payment...
Is way off into the future, and you'll find a way to get the dollars between now and then.
So that money circulates with velocity, and that's what could create further downward pressure.
The kicker there is that the maturity of the loans outside of the United States, very short term.
In fact, most of the experts that I have spoken to would say that the average maturity for a dollar loan outside of the United States is under six months.
So even if everyone dumps dollars and goes to the BRICS currency, those dollars have to be purchased by another entity that owes those dollars, let's just say in two weeks or three weeks.
Now let's think about this.
You're selling them rubles.
Okay, great.
But let's just say that there's other entities out there that aren't doing a direct deal with Saudi Arabia.
But they owe, let's say, Myron, you're another entity, Walter, that owes $5 trillion.
Obviously, I'm using huge numbers.
These aren't realistic.
I'm just doing it to show the concept.
So you owe $5 trillion in two weeks.
And you're like, crap, I don't have the dollars on my balance sheet.
I don't have treasuries.
All I have are...
Let's just say Mexican pesos.
Let's say you're a Mexican multinational.
So you've got all these pesos on your balance sheet.
We're like, that's it.
I don't have a choice.
I've got to sell my pesos to buy the dollars that I need to make that $5 trillion payment in two weeks to the bank.
So what happens is Saudi dumps the dollars, but you dump the pesos to buy the dollars.
Ah, okay.
So someone always votes.
So it nets out.
Yeah.
So what happens...
He's going to play hot potato with it, essentially.
Yeah, it's very true.
Let's just say you've got this much demand.
Let's say there's $60 trillion in demand and only $50 trillion, and then $50 trillion in dollar-denominated debt.
It is true that that demand can go down, that can put slight downward pressure on the dollar, but it doesn't crash.
And at a certain point, demand cannot go.
Beneath the amount of dollar denominated debt.
It's not possible.
It's just not possible.
Now, again, you could go into a dollar crash if the maturity of the loan was 30 years, but the maturity is very, very short term.
So I'm not saying that the dollar can't go down against other currencies.
I'm not saying that it can't crash against goods and services in the United States.
It absolutely can.
But to crash against other currencies, the probability of that is extremely, extremely low.
arguments for this is that all these central banks are going to de-dollars.
Okay, they're already doing that.
They've already done that over the last three or four years.
Then you say, oh, well, look at all the budget deficits that's going to explode.
It's already done that.
Do you know that the national debt since 2019 has gone from $22 trillion to $34 trillion?
Wow.
$34 trillion.
Wow.
And so it's not that it's just an increase of $12 trillion, but it's an increase of like 50%.
Yeah.
And obviously all the experts realize the deficit problem that we have.
Everybody agrees on that.
And plus we've had M2 money supply go up in 2020 and 2021 by like 25%.
So every single, like, this is a perfect storm for a dollar crash.
Yeah.
And what has the dollar done since 2019?
Yeah.
It's gone up.
It has gone up, yes.
It's gone up.
It's gone up compared to the other currencies.
Compared to other currencies.
Now, in that situation where Saudi Arabia dumps their dollars, they've got a few different options there.
What they could do, instead of selling them for brick currencies, is they could say, actually, we want U.S. assets.
So we're going to take these $10 trillion and we're going to buy half of Manhattan or whatever it is.
So then those dollars come into the United States.
Now, this is where it gets interesting.
Because now if the aggregate balance sheet in the States is $20 trillion and $20 trillion, now we have $30 trillion and only $20 trillion of debt.
So you've got an oversupply in the United States circulating, causing consumer price inflation.
While at the same time, you've got an undersupply outside because you had $50 trillion and $50 trillion.
Now you only have $40 trillion to pay off that $50 trillion in debt.
Gotcha.
So you've got the dollar going up in this scenario against other currencies, while the dollar is crashing, potentially, against goods and services in the United States.
So it actually hurts to have that money come back.
Oh, it absolutely can.
Wow.
Okay.
Absolutely can.
And then the only way we can get rid of those dollars and export them is through a trade deficit.
And I don't know anyone that would argue that on net balance a trade deficit is something that's wildly beneficial for the United States.
Damn.
And so then it gets even crazier because what would Jerome Powell do in that circumstance if we had consumer price inflation, let's just say go back up to 10%.
He's going to raise rates.
Yeah.
Okay, well, let's think about that.
Because those $50 trillion that are owed outside of the United States, that's a liability on the entity's balance sheet.
But whose asset is that?
That's the bank's.
That's the bank's asset.
So what happens to their loan asset if interest rates go up?
The value goes down.
The value goes down.
So effectively, in that scenario, you could have a global Silicon Valley bank.
Because that's what happened to Silicon Valley bank.
The asset side of their balance sheet went down in value because interest rates went up.
So the value of those treasuries went down because there's an inverse relationship between the yield and the price.
So if there's $50 trillion of basically treasuries, it's just a loan asset that has interest rate risk.
So if the interest rates skyrocket in that type of environment, we go back to the 1970s, now all of a sudden the value of those assets goes way down and the banks are insolvent.
You say, well, that's great because then people have to pay back less and they've got all these nominal dollars.
But yeah, then the banks go bust and you remember that those dollars aren't green pieces of paper, they're simply bank ledgers.
So if the banks go bust, the ledgers are gone.
Now all those dollar assets are gone as well.
Gone as well.
That's kind of scary, man.
If you look at it from a long-term standpoint.
So, again, I'm not here to freak people out.
I'm here to help people understand how the monetary system is built and how it's set up.
And there's no downside in knowing that.
And it gives you a huge edge.
Because I can tell you, I talked to...
Tons of experts.
And I know a lot of people in the space, and very few of the even experts understand those dynamics that we just went over.
So if your viewers can even understand 10 or 20% of that, that's going to...
Yeah, I mean, hell, I'd be lying to you if I told you I understood 100%.
I understand, obviously, the general concept, but like, holy crap, like that's...
Yeah, the main takeaway is the probability of the dollar crashing against other currencies is extremely low to the point where I really wouldn't worry about it and I wouldn't make any investment decisions.
I would argue that the tail risk is not that the dollar goes down, it's that the dollar goes up.
That's your tail risk event.
Okay.
Yeah.
I mean, because as you say this, you know, I'm thinking about all the times that the economy was terrible in the United States during COVID, blah, blah, blah.
The dollar went up.
Like, we went up over the Canadian dollar.
We got close to the Great British Pound.
We're almost neck and neck with the Euro.
Like, we've only went up since all this stuff's been happening.
So, yeah.
And there's a lot of doomers that, oh, the dollar's going to crash.
We're not going to be the reserve currency anymore.
BRICS is going to take over.
But that's an interesting concept where even if Saudi Arabia or one of these countries that does all their transactions in dollars, which keeps the dollars so powerful, said, you know what?
Get rid of our dollars.
Someone else is going to want to buy it.
I'm more worried about it.
Yeah, because someone else has to pay off that debt.
Someone else has to pay the debt.
So it is true.
And again, don't get me wrong.
I understand that much.
Don't get me wrong.
The dollar can go down.
Yeah, for sure.
It absolutely can go down, let's say, 90 on the DXY, 85, something like that.
But what most people talk about is a dollar crash, and that was your question.
You have the dollar basically going to zero, like being Venezuela or Argentina or something like that, where the dollar just completely collapses against other currencies.
And again, they're...
There are no certainties.
There are only probabilities.
But that is almost as low as the government not paying you back on a T-bill.
It's just not something...
Be cognizant of the system, but we've got bigger fish to fry.
Gotcha.
Okay.
Wow.
So that was probably one of the most thorough explanations of how the U.S. dollar will...
I guess it will stay the U.S. reserve...
I don't know if it will stay the reserve currency, but it won't necessarily crash in comparison to other currencies.
Yeah, you look at the central banks are kind of de-dollarizing, but that's not really doing anything.
What you really got to focus on is what the private sector is doing.
So is the dollar losing reserve status?
Absolutely it is.
Absolutely it is.
But I can tell you how the dollar is not going to lose reserve status, and that's from the top down.
There's never been a king that's come out, Walter, and said, I declare as of today, my currency is the global reserve currency, and you, business owner, are going to obey me.
They say no.
Go screw yourself.
Pound sand.
I don't care what you want to transact with between China.
You know, Putin, Xi, you go nuts.
I'm going to hold dollars.
So what you have to look at is not what the central banks are doing.
It's what the actual real economy is doing, what the banks are doing, and what these global enterprises are doing, and the small and mid-sized businesses.
So if you go to Turkey, I was just in Istanbul, and you go to a coffee shop in Turkey and they open up the cash register, you look in there, you see Turkish lira?
No, you see US dollars!
You see US dollars!
Look, in Argentina, they're not trying to rubalize the economy, they're trying to dollarize the economy.
Yeah.
Right?
And it's because, you know, you don't have to like it, for heaven's sakes, but it is what it is.
It's just the way that the system is set up.
It's set up in a way that fundamentally makes it more stable than other currencies, although, at the same time, not stable against goods and services in the United States.
Gotcha.
That's what people really have to get their head on.
I was more worried about Saudi Arabia or a country like that not depending on a dollar anymore and just going away to somebody else.
But I guess that's not really...
But what do the entities do?
So let's just...
No, no, no.
But I'm saying the entities in Saudi Arabia, right?
So you've got to understand that the dollar, and I think we've explained that to the degree to which your audience can understand how much of a network it is.
And it's literally, it has the most powerful network effect in human history.
I would argue it's a more powerful network than the internet itself.
Really?
Right.
So if you want another currency that's going to compete, it's not competing with a currency.
You're competing with a network.
So if you want to argue that the BRICS currency is going to take over from the dollar, you have to argue how that network works.
Is going to take over from the existing dollar network that includes all of these banks, all of these corporations, all of these entities that benefit from the way the system is set up right now.
And it's the exact same thing as someone trying to come out with a startup right now and saying that they're going to create a new internet.
Good luck with that one.
That took years to build, like, multiple years.
Yeah, and if you are going to build one, it's not going to be a government coming in and saying, hey, we've got a new internet that we want you to use.
No, no, no, I'm using this one.
Screw you.
Yeah, so it is true that the dollar will lose reserve status.
Absolutely it will.
But it's not really going to crash in the process.
And when it does lose status, it's going to be a result of the private sector choosing...
To use a different currency, not Putin or Xi mandating it.
Entities within the system.
It's going to be bottoms up.
It's going to be the private entities choosing that they want to use a different currency because that economy has grown to the point Where you're like, hey, I've got all these customers, therefore I want to keep their currency because I want to do more and more business with them.
You've got to just ask yourself how the United States dollar became the world reserve currency.
It wasn't Bretton Woods in 1944.
No, no, no, no, no.
The dollar really started to become the global currency or the reserve currency in the 1920s.
Why?
Because the U.S. economy was growing and growing and growing and growing and growing, so you had all these businesses that wanted to do business with the entities in the U.S. saying, yeah, this is a no-brainer.
I've got to start keeping dollars.
I've got to start keeping more and more dollars.
I thought it was in the 1970s when Nixon kind of took us off the gold standard.
No, officially it was 1944, but it really started happening in the 1920s.
Okay.
But again, it didn't happen because of a king or a president or a queen or a prince or whatever saying that from now on, the world is going to use dollars.
No.
It was the bottoms up.
It was the real economy choosing to do that because the United States economy was growing to such an extent.
And by the way, the pound sterling didn't crash.
So that's the way the dollar will lose reserve status, is the Chinese economy, all these other economies will grow slowly and slowly and slowly and more and more and more over time to where the entrepreneurs and the businesses want to start using whatever currency they have.
But that takes a lot of time to play out.
And again, the main takeaway is even if that does or when that does play out, the dollar doesn't crash in that scenario because of the dynamics that we just talked about.
And by the way, let's just say that Saudi Arabia, their third option, would be to pay back the debt.
Let's say they have $10 trillion in debt.
So they're like, we don't want these dollars anymore, but we've got to pay the bank next Tuesday, so we might as well just pay them today.
Okay, well, what happens to the amount of dollars?
It goes down by $10 trillion because they just paid off the loan.
So you started with 50 and 50.
Now they pay off the loan and it goes down to $40 trillion and then the dollar denominated debt goes down to $40 trillion as well.
So what's fascinating about this is the less demand there is for dollars outside of the United States, the lower the supply of dollars goes.
So the demand controls the supply.
Wow.
If you understand the dynamics of the dollar monetary system.
Okay.
And that coincides exactly with what we talked about before, where they're basically generating money out of nowhere when they give you a loan almost.
Yeah.
So it's a different...
Look, if I'm going to loan you this pen that already exists, okay?
I just...
I don't know where I... I got this from the store, let's say.
And Walter, you need a pen for the day.
And you say, hey, George, can I borrow that?
Sure.
So I say, Walter, I'm going to give you that pen.
Thank you, sir.
Okay.
So now, did I just create that pen?
No.
It already exists.
So I didn't increase the amount of pens in the world by loaning that to you.
And then you give it back to me.
You pay me back.
We didn't decrease the amount of pens in the world.
But that's not how the banking system works.
That's not how dollars are created.
What happens is, let's say this pen never existed.
And I just create it.
By lending it to you.
So now there's one more additional pen that's circulating in the world.
I give it to you.
I take it back.
And when I take it back, it's destroyed and it no longer exists.
That's what people have to get their head around.
You have to understand that we're not lending green pieces of paper that already exist.
Banks are creating dollars when they loan or when they create a loan.
They're lending them into existence.
They're not lending pre-existing dollars.
So when they say money's an illusion, it's actually true.
Yeah.
Well, it's a thought abstraction.
It's an illusion.
Again, all it is, all we're talking about is just a network of global bank ledgers.
That's all money is.
Most people's concept of money.
Alright.
Alright.
Okay.
That was a lot.
No, no, no.
Great fucking stuff, man.
I would say I understand about 50% of it now.
T-bills.
That's where I'm going.
T-bills.
Okay, so DG Bill goes, she tried to waste my time, me learning some of this great value WFNF. Okay?
All right.
Yeah, I think so.
We got another pod for y'all.
We have Bob Mennery.
Yeah.
And we have, I think, Stiney coming as well.
Okay.
With some girls.
Yeah, so we're going to do a pod.
And then actually, we're going to have George probably back on Wednesday with some girls.
That's going to be lit.
We're going to- Make a question.
Yeah, we'll probably do some- That'll be more of an entertaining show.
Yeah, that'll be a good time.
But yeah, guys, hope you guys enjoyed the episode, man.
Definitely get your notebooks out and rewatch it because I know I am.
That was probably one of the most thorough explanations of how the banking system works in the United States.
Like, wow, that's crazy stuff.
In the world, sorry, in the world.
Yeah, and I wrote about an 11-page paper that I turned into a Twitter thread on what we just discussed with the dollar.
Okay.
So if people want to go to Twitter, they can go to my Twitter account.
It's just George Gammon.
And then scroll down on my Twitter feed.
And it was maybe a week ago or something.
I posted it.
But you'll see it's like an 11...
Post thread.
And I've got charts and graphs and I've got balance sheets and everything.
If people want to actually read what we just talked about to get a better understanding.
Bam.
All right.
Guys, here's George Gammon.
Check him out on all the platforms.
Man, he's on YouTube, Instagram, Axe, as you guys can see.
I'm going to follow you next.
I didn't even know you were on there.
And yeah, guys, like the video, subscribe to the channel, check him out as well.
You're going to be here in Miami for about a week, and then you'll be back in Columbia, so we'll bring him back again.
Yeah, and I go to Dubai.
I go from here to Dubai, and then I've got meetings in there, and then I go back to Medellin.
All right.
Cool.
Guys, we'll be back here.
I don't know if Chris is here, but we'll be back.
We'll be back with some girls here in a bit, man.
In a bit.
Love you guys.
Peace.
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