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Welcome to the money advantage,

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empowering business owners with the permission to thank

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differently about money so that you can

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choose to live in meaningful and fulfilled life

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down. Our passion is making money simple, fun

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and doable. Helping you feel great about your

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money. And getting your money working for you

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so you can thrive.

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Right. Good morning and welcome back to the

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money advantage podcast This is Rachel Marshall and

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Bruce Wayne. So we're gonna jump into this

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topic today

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because there is a

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lot of misunderstanding around the idea of banking

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and what banking is and what it does.

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And really, what you

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don't know can actually hurt you. We're talking

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today about is the concept of the way

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that we typically think about banking and using

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and

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participating in banking as we know it, is

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that actually hurting the economy. That might sound

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like a outlandish question, but today we're gonna

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dive in because there are a lot of

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things with fractional reserve banking

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in the American economy that cause an inflationary

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currency

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supply. And because of that, when you have

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inflated currency, you have more dollars in circulation

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that can cause that causes inflation where each

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of those dollars becomes worth less. So because

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of the nature of the way the banking

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system works, we have an opportunity to not

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participate in that as much as we can

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to take the banking function into our own

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hands

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through a process called infinite banking, which is

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a sound money solution to fractional reserve banking

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and inflation. And today, that's what we're gonna

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talk about. We're gonna talk about how you

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can be a part of

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not

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hurting the economy. How you can be a

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part of subs succeeding from a system that

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in

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in even its

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grandest best intentions can end up going down

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a path of causing inflation. And what we

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can do to prevent that. So, Bruce, I'm

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excited for this conversation today. I think, this

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is something that

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is important mostly because

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we all feel the effects of inflation. And

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there are so many opinions and different economists,

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schools of thought that go

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about the discerning, the reason for the problem

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and how to fix it in our world.

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And we get the common dialogues about we'll

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just change the interest rate, or we need

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more dollars to do this. Or we need

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to think about what's happening with the national

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debt. There's so many things that are impacting

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the economic factors around us. And instead of

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just feeling those effects of inflation, we wanna

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give you some actual practical tools of understanding

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so that you can be in the best

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position possible. So, Bruce that is my thoughts

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as we jump into this conversation.

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What are you hearing boots on the ground

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as you're talking to people

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about this this question around inflation, and this

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question around the the banking system.

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Yeah. Unfortunately,

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unfortunately, this has turned into a political

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discussion. And,

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So you get 2 sides of it.

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You get you get the 1 side that's

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a more traditional

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liberal

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aspect

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and they will say well, inflation is caused

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by a greed of corporation than business owners.

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It has nothing to do with the money

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supply.

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It's just that business owners and corporations want

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to set prices higher.

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The other side says,

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No. That's not the way it works is

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the fact that the matter is is that

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there's just more money in the system. And

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if there's more money chasing fewer goods

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then

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prices are going to rise naturally because of

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the free market system.

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And

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that would be the the Austrian way of

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of thinking,

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Van Mis and Von mis and Mh.

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Karl Mango and and others who actually,

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Karl Meng actually

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offered the books, principles of economics.

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And then, of course, our friend, Bob Murphy's

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has been on the Show a couple times

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in Austrian and Economist would agree.

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I actually did a gonna do a thought

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experiment right now with a couple people and

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it'll be able... It may be a little

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difficult

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to do over the podcast, but

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So I want everybody to... That's listen to

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cash right now, whether you're listen your live

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or whether you're... I listed to the recording

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to think about

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that you have

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an an extra 500

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dollars.

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So you have 500 dollars that you can

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spend on something. And then I have my

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Apple

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air airpods right here,

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and my Apple Airpods,

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I am going to suggest the price. And

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this is what business owners do.

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I always say business owners only suggests prices,

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but the consumer actually sets the price. And

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that price

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that's very of hard for a lot of

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people to understand because they're like, no, no,

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no. The... The business

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or the corporation sets the price

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And then I have to pay it. Well,

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no. You choose the pay. That's the difference.

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And this is what this is the emotional

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part of it because

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people say, they... They say, well, I have

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to have a car. I have to have,

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you know, this dress. I have to have

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my nails done. I have to go play

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golf.

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I have to have food, you know, they

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all all say those things.

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And the fact that a matter is no,

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you choose to do all those. Things. Now

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I understand that something's things to stay alive.

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You have to to have, like food,

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water, so and forth, but thanks you can

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actually shop around and negotiate what the price

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is going to be.

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So the business or corporations suggest the price

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the consumer from their behavior

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actually sets the price. Because if I have

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this apple air airpods right now,

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and you have an extra 500 dollars, and

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I say, okay. I am going to set

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this price at 300 dollars.

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You may pay to yourself.

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Okay. I'm gonna decide is that I gonna

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have an extra 500 dollars. Am I gonna

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spend,

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300 dollars on these apple airpods.

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And then you're gonna make a decision, and

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you're going to

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buy them along with some of your friends,

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other people in the world are gonna buy

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them. And depending on how fast they move

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according to how she took to produce them,

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apple's gonna make a decision and say the

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next week,

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or the next day or the next month,

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They're gonna say, you know what?

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These are selling really, really well, we're gonna

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suggest a higher price

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and see if they still

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if they still are sold at that higher

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price at the same rate.

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If they are... If they aren't being sold

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at a very high rate.

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Apple says, we're gonna suggest a lower price

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and see what the consumer does.

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And so

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the corporation is setting the price at 300.

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You have an extra 500, you make that

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decision

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and you're going to decide, yes, I'm going

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to buy them.

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Or you're gonna decide no. I'm not going

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to buy them.

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Now here's where the thought experiment comes in.

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The government now through lowering

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interest rates

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allows more money to come into the system.

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And when more money comes into the system,

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you can actually have

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money that is

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delayed...

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You're not to... You don't have to delay

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gratification because you can actually obtain that from

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a loan.

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Or a credit card or

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because more money has come into the system.

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It's cheaper for a business or corporation to

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obtain that money

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and they may actually pay you more in

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a wage.

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So if you pay more in a weight,

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you also get more.

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And that has to do with supply and

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demand of labor.

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Mh. So now,

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suddenly, you don't have 500

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extra dollars

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you have 700 or 800 or a thousand.

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So now when this price set at 300,

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you you thought it was a pretty good

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deal when you had 500 extra dollars

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but now you have a thousand extra dollars.

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Well, I I wanna challenge everybody out there

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listening,

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are you more likely then because you had

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more dollars at your disposal

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to make a quicker decision to buy it

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at 300 dollars.

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Well, of course, you are.

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So more are gonna fly off the shelf.

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So then apple's gonna say,

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oh,

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But we have more dollars chasing fewer goods,

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we are gonna ramp up our

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production. But in the meantime,

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we gonna suggest a higher price

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and see if people are gonna still buy

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them at the higher price. And guess what

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because they have more money. They are. Oh,

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we're gonna suggest a higher price next month,

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and people have more money, and there will

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there will come in equilibrium time

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where now the production of that particular goods

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or service

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is equal to the amount of dollars

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in the system.

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Now and you're gonna accept that. That's the

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Austrian view.

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That is to to me, that's a logical

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view.

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Or you can accept

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the other view where it's just corporate grades

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setting the prices higher and higher. And my

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I will finish now with this introduction by

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saying.

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I don't see how a person can

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realize that a corporate

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corporate view of of greed can be sustained

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because once those dollars

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are gone out of your hands. You have

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no more dollars

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to buy goods and services at a higher

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price.

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So

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now the corporation has to lower it. So

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it's not greed. It's suggestion

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where they can actually set those prices.

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I think it's very interesting to consider

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that

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when you look at

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dollars

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and the price of goods

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over time,

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it can seem like

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house

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prices or the market rate of the houses

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the housing market is going up, and the

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dollar value of gold is going up, and

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the dollar price to buy food is going

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up and the dollar price for everything, seems

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like it's going up. But when you really

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look at things for the most part, you

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you realize that the same amount of

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if you tracked it outside of a fiat

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00:11:02,544 --> 00:11:04,929
currency outside of the dollar, which is an

280
00:11:04,929 --> 00:11:05,429
adjustable

281
00:11:06,439 --> 00:11:08,188
valuation. But if you tracked it with something

282
00:11:08,188 --> 00:11:10,414
like gold, the same amount of gold would

283
00:11:10,414 --> 00:11:12,598
still purchase the same amount of a tailored

284
00:11:12,655 --> 00:11:14,485
man suit as it did about a hundred

285
00:11:14,485 --> 00:11:16,656
years ago. And so you look at

286
00:11:17,031 --> 00:11:19,122
the fact that things are

287
00:11:19,434 --> 00:11:21,428
more expensive in terms of the amount of

288
00:11:21,428 --> 00:11:23,661
dollars that are required. It also is showing

289
00:11:23,661 --> 00:11:26,213
that our dollars are worth less because there's

290
00:11:26,213 --> 00:11:28,845
more dollars in circulation in the economy.

291
00:11:29,338 --> 00:11:30,714
That are chasing

292
00:11:31,089 --> 00:11:33,078
the equal amount of goods and services. There's

293
00:11:33,078 --> 00:11:34,988
so much to this as well. It's not

294
00:11:34,988 --> 00:11:37,375
it's not simple just to say, well, you

295
00:11:37,375 --> 00:11:38,114
fix something

296
00:11:38,742 --> 00:11:41,917
by adding more currency. You fix the problem

297
00:11:41,917 --> 00:11:44,694
by taking currency out of circulation. It's not

298
00:11:44,694 --> 00:11:46,678
just that simple, but what ends up happening

299
00:11:46,678 --> 00:11:49,317
is we have a federal reserve that was

300
00:11:49,317 --> 00:11:49,817
created

301
00:11:50,272 --> 00:11:51,328
and that

302
00:11:51,942 --> 00:11:53,692
then we have an entire banking system,

303
00:11:54,264 --> 00:11:57,056
that is based on fractional reserve banking. We

304
00:11:57,056 --> 00:11:59,370
have deposits. We have loans, and we're gonna

305
00:11:59,370 --> 00:12:00,726
talk a little bit about what that means.

306
00:12:00,886 --> 00:12:03,598
But all of those are inflationary, They all

307
00:12:03,598 --> 00:12:04,098
add

308
00:12:04,470 --> 00:12:07,086
currency into the system. And when you look

309
00:12:07,086 --> 00:12:08,774
at what's happening with that

310
00:12:09,481 --> 00:12:09,958
we don't...

311
00:12:11,630 --> 00:12:14,040
It's a it's a problem when it's creating

312
00:12:14,495 --> 00:12:17,201
inflation. We don't necessarily recognize the mechanism, but

313
00:12:17,201 --> 00:12:20,106
the effects of it are felt through

314
00:12:20,802 --> 00:12:23,594
added currency supply and things having more expense.

315
00:12:25,349 --> 00:12:27,502
Yeah. And Bernard Clement is listening right now.

316
00:12:27,662 --> 00:12:28,355
And he said

317
00:12:28,794 --> 00:12:29,754
that's true unless,

318
00:12:30,875 --> 00:12:33,274
on elastic and what he means is that

319
00:12:33,274 --> 00:12:34,254
you can actually

320
00:12:34,714 --> 00:12:36,235
stretch the prices up and down.

321
00:12:37,205 --> 00:12:39,583
But it's not true on in elastic things

322
00:12:39,583 --> 00:12:40,638
such as Medicare

323
00:12:41,010 --> 00:12:42,913
because that price is being said by the

324
00:12:42,913 --> 00:12:43,309
government.

325
00:12:43,785 --> 00:12:43,943
Now,

326
00:12:45,390 --> 00:12:47,381
I would say that I would still argue

327
00:12:47,381 --> 00:12:48,815
again, I think it's a very good point,

328
00:12:49,691 --> 00:12:52,319
but I would still argue in the very

329
00:12:52,319 --> 00:12:53,138
long term

330
00:12:53,688 --> 00:12:54,188
that

331
00:12:54,724 --> 00:12:57,057
those prices are set by the government

332
00:12:57,513 --> 00:12:58,889
because they are also

333
00:13:01,113 --> 00:13:03,262
they are also gonna be determined by how

334
00:13:03,262 --> 00:13:05,910
much the government feels like they can extend

335
00:13:06,445 --> 00:13:07,957
such as the Medicare program,

336
00:13:08,689 --> 00:13:09,908
un funded liabilities

337
00:13:10,607 --> 00:13:12,065
and still get the taxes

338
00:13:12,764 --> 00:13:15,720
from the from the the citizens.

339
00:13:16,533 --> 00:13:19,165
And so, although it is in elastic... On

340
00:13:19,165 --> 00:13:21,477
a very short period of time,

341
00:13:22,832 --> 00:13:24,449
there could be elasticity

342
00:13:25,558 --> 00:13:26,536
that could be

343
00:13:28,904 --> 00:13:31,614
gone over a long period of time. And

344
00:13:31,932 --> 00:13:34,721
Bernard says I'm absolutely wrong 100 percent. Well,

345
00:13:36,011 --> 00:13:38,164
I'm not saying I'm right 100 percent. I

346
00:13:38,164 --> 00:13:40,715
am giving theories about how this is actually

347
00:13:40,715 --> 00:13:41,114
working.

348
00:13:41,752 --> 00:13:43,665
So I'd appreciate it, you know, if people

349
00:13:43,665 --> 00:13:46,061
would open their minds a little bit and

350
00:13:46,061 --> 00:13:48,123
just use some logic on some of this

351
00:13:48,123 --> 00:13:48,282
stuff.

352
00:13:49,948 --> 00:13:50,955
I would say that

353
00:13:52,028 --> 00:13:54,415
before the Federal reserve reviews, if you saw

354
00:13:54,415 --> 00:13:54,653
this,

355
00:13:55,369 --> 00:13:55,869
that

356
00:13:56,403 --> 00:13:57,858
there wasn't as much

357
00:13:58,649 --> 00:14:01,309
inflationary pressures. So then how could you

358
00:14:01,769 --> 00:14:03,230
eliminate the fact that

359
00:14:03,610 --> 00:14:05,850
there is no correlation of that. There may

360
00:14:05,850 --> 00:14:07,504
there may not be a hundred percent

361
00:14:08,181 --> 00:14:09,453
correlation due to to that,

362
00:14:10,249 --> 00:14:13,135
but there is... There has to be some

363
00:14:13,510 --> 00:14:13,749
correlation.

364
00:14:16,480 --> 00:14:17,600
Oh, I'm sorry, Bernard.

365
00:14:18,639 --> 00:14:20,559
I... I'm reading off my phone,

366
00:14:21,040 --> 00:14:21,759
and he said,

367
00:14:22,415 --> 00:14:25,235
that it he said medical care, not

368
00:14:26,014 --> 00:14:26,514
Medicare.

369
00:14:27,215 --> 00:14:30,495
I I understand how that is somewhat in

370
00:14:30,495 --> 00:14:31,475
elastic too

371
00:14:31,789 --> 00:14:34,101
But I would also say that there is

372
00:14:34,101 --> 00:14:37,152
some elasticity on that or why do hospitals

373
00:14:37,290 --> 00:14:37,790
now

374
00:14:38,805 --> 00:14:39,305
actually

375
00:14:39,682 --> 00:14:40,001
advertise?

376
00:14:40,734 --> 00:14:42,647
And Bernard, I just got... It's funny you

377
00:14:42,647 --> 00:14:45,278
meant to this because I am just leaving

378
00:14:45,278 --> 00:14:47,373
my house today, and I took the mail

379
00:14:47,431 --> 00:14:48,808
out of my mailbox.

380
00:14:49,757 --> 00:14:50,630
And I am getting...

381
00:14:51,265 --> 00:14:53,249
And here here was what the flyer said.

382
00:14:54,122 --> 00:14:55,074
Please attend,

383
00:14:55,868 --> 00:14:57,693
please attend a gourmet dinner,

384
00:14:58,983 --> 00:15:00,042
if you have

385
00:15:00,739 --> 00:15:03,076
these following medical issues

386
00:15:03,693 --> 00:15:05,769
and we will help you solve those issues.

387
00:15:05,929 --> 00:15:07,626
So here is a doctor

388
00:15:08,258 --> 00:15:09,395
that is actually

389
00:15:10,486 --> 00:15:10,986
advertising

390
00:15:11,521 --> 00:15:14,886
and that advertising then would be for services

391
00:15:15,023 --> 00:15:17,171
that seem to be elastic to me.

392
00:15:17,982 --> 00:15:20,449
So there may be some some things that

393
00:15:20,449 --> 00:15:21,324
are in elastic,

394
00:15:22,518 --> 00:15:24,587
but I think most of of the economy

395
00:15:24,587 --> 00:15:26,201
is run on elasticity.

396
00:15:27,147 --> 00:15:30,791
So I I get your your viewpoint, Bernard,

397
00:15:30,950 --> 00:15:32,693
and I appreciate it, and thanks for listening,

398
00:15:32,931 --> 00:15:33,906
and thanks for

399
00:15:35,805 --> 00:15:36,759
and thanks for,

400
00:15:38,271 --> 00:15:39,623
participating, and it and

401
00:15:42,904 --> 00:15:43,143
Well,

402
00:15:43,781 --> 00:15:46,435
he says now try to negotiate medical care

403
00:15:46,573 --> 00:15:49,603
our prescription drugs. Well, actually, I just did

404
00:15:49,603 --> 00:15:50,481
this personally.

405
00:15:53,121 --> 00:15:55,029
What happened was I need I need some,

406
00:15:56,380 --> 00:15:59,738
anti inflammatory for my eyes. My... My insurance

407
00:15:59,738 --> 00:16:00,936
company doesn't cover it.

408
00:16:02,133 --> 00:16:04,549
So I went to 1

409
00:16:05,007 --> 00:16:05,507
pharmacy.

410
00:16:06,125 --> 00:16:07,961
They said it would be 206

411
00:16:07,961 --> 00:16:08,461
dollars

412
00:16:09,174 --> 00:16:11,251
I went to another pharmacy. They said it

413
00:16:11,251 --> 00:16:12,530
was a hundred and 18 dollars.

414
00:16:13,089 --> 00:16:15,246
So guess where I purchased it. I purchased

415
00:16:15,246 --> 00:16:16,525
it at the other pharmacy.

416
00:16:17,018 --> 00:16:19,108
So I do think there is there's some

417
00:16:19,562 --> 00:16:21,628
negotiation. Not I didn't go to the first

418
00:16:21,628 --> 00:16:24,274
pharmacy and said, I will pay you less

419
00:16:24,664 --> 00:16:26,821
Mh. I didn't do it verbally, but I

420
00:16:26,821 --> 00:16:29,298
did dollar option. Yeah. Right. I bought it

421
00:16:29,298 --> 00:16:31,295
with my action with my pay.

422
00:16:32,267 --> 00:16:32,767
So

423
00:16:33,700 --> 00:16:36,167
I understand that some prices are set and

424
00:16:36,167 --> 00:16:38,396
you cannot go and do that, but I

425
00:16:38,396 --> 00:16:39,533
believe if

426
00:16:40,399 --> 00:16:43,971
If hospitals and doctors are gonna continue to

427
00:16:43,971 --> 00:16:45,003
actually advertise,

428
00:16:45,638 --> 00:16:48,440
and actually, if we make pricing more

429
00:16:48,987 --> 00:16:51,294
Another 1 was my wife just last year

430
00:16:51,294 --> 00:16:54,157
in October had a Mri that she needed

431
00:16:54,157 --> 00:16:54,635
to be done.

432
00:16:55,668 --> 00:16:57,043
That her dot doctor

433
00:16:57,911 --> 00:16:58,411
insisted

434
00:16:59,343 --> 00:17:00,082
that she

435
00:17:00,616 --> 00:17:02,924
do an Mri with their medical group. It

436
00:17:02,924 --> 00:17:04,277
was 3000 dollars.

437
00:17:05,407 --> 00:17:07,080
My wife thought she had do it. I

438
00:17:07,080 --> 00:17:09,392
said, no. Get get the subs script... The

439
00:17:09,790 --> 00:17:12,555
the the script. We're gonna go to a

440
00:17:12,833 --> 00:17:15,854
metro imaging place here in S. Louis, and

441
00:17:15,854 --> 00:17:17,762
it was only 999

442
00:17:17,762 --> 00:17:18,715
dollars. Mh.

443
00:17:19,510 --> 00:17:21,839
So once again, we voted

444
00:17:22,149 --> 00:17:24,454
and negotiate it with our money and and

445
00:17:24,454 --> 00:17:26,919
we took charge now. I know what Bernard

446
00:17:26,919 --> 00:17:28,667
and a lot of where people say... In

447
00:17:28,667 --> 00:17:29,167
emergency

448
00:17:29,621 --> 00:17:31,132
situations, you can't be laying on the bed.

449
00:17:31,624 --> 00:17:33,619
And you say this, But I'd like to

450
00:17:33,619 --> 00:17:35,774
kinda get off this topic because I'm not

451
00:17:35,774 --> 00:17:37,072
saying that everything

452
00:17:37,530 --> 00:17:39,547
is not controlled by something

453
00:17:40,019 --> 00:17:41,851
and in the and the consumer can't sit

454
00:17:41,851 --> 00:17:44,241
there and negotiating. What I'm saying is you...

455
00:17:44,878 --> 00:17:48,326
A large enough group of people that actually

456
00:17:48,383 --> 00:17:49,282
vote with

457
00:17:49,914 --> 00:17:52,014
their dollars going somewhere else

458
00:17:52,794 --> 00:17:53,294
could

459
00:17:54,234 --> 00:17:56,474
actually vote this. And that's the majority of

460
00:17:56,474 --> 00:17:58,369
it. I'm not saying it's all of it

461
00:17:58,489 --> 00:17:59,762
but it's a majority of it.

462
00:18:00,716 --> 00:18:02,943
So what's really interesting is this whole idea

463
00:18:02,943 --> 00:18:04,932
of if you had additional dollars?

464
00:18:06,223 --> 00:18:08,641
Would you choose to pay a higher price

465
00:18:08,701 --> 00:18:09,340
for something,

466
00:18:09,899 --> 00:18:12,696
The seller then can set a higher price

467
00:18:12,696 --> 00:18:14,548
because people have additional dollars? To be able

468
00:18:14,548 --> 00:18:17,660
to put into something. But what about once

469
00:18:17,660 --> 00:18:19,117
that dollar goes through

470
00:18:19,575 --> 00:18:21,431
circulation. So you had more dollars

471
00:18:21,744 --> 00:18:23,816
just say you were the only person who

472
00:18:23,816 --> 00:18:26,047
had more dollars. Now, you pay a higher

473
00:18:26,047 --> 00:18:27,641
price that goes to the seller, the seller

474
00:18:27,641 --> 00:18:30,846
has more good, more... Dollars compared to everyone

475
00:18:30,846 --> 00:18:32,841
else. I'm changing your thought experiment a little

476
00:18:32,841 --> 00:18:35,475
bit. But now that seller, the merchant that

477
00:18:35,475 --> 00:18:38,005
you were gonna buy, the the airpods from

478
00:18:38,124 --> 00:18:39,642
Now they have more dollars. They're able to

479
00:18:39,642 --> 00:18:40,622
go purchase

480
00:18:41,000 --> 00:18:43,237
at a higher price than everyone else comparatively,

481
00:18:43,637 --> 00:18:44,835
something that they wanna purchase.

482
00:18:45,647 --> 00:18:48,034
But as those dollars get into the economy

483
00:18:48,034 --> 00:18:49,863
now all of a sudden, as those dollars,

484
00:18:50,022 --> 00:18:52,193
you follow them around, will now the

485
00:18:52,504 --> 00:18:54,177
I don't know. The guy who sold the

486
00:18:54,177 --> 00:18:55,372
airpods now, bought some,

487
00:18:56,328 --> 00:18:58,639
I don't know. Fresh salmon that was...

488
00:19:00,247 --> 00:19:02,077
Caught out of the ocean, and so they

489
00:19:02,077 --> 00:19:03,988
pay a higher price there, will the the

490
00:19:03,988 --> 00:19:06,057
seller of the salmon now goes and purchases

491
00:19:06,057 --> 00:19:08,383
a sofa and is able to bay pay

492
00:19:08,383 --> 00:19:10,778
more because he has more dollars. But now

493
00:19:10,778 --> 00:19:13,753
when all of those the trail of those

494
00:19:13,812 --> 00:19:14,312
merchants

495
00:19:14,690 --> 00:19:16,765
can set higher prices because they know somebody

496
00:19:16,765 --> 00:19:19,641
is willing pay them, it then shuts everyone

497
00:19:19,641 --> 00:19:21,943
else out of being able to make that

498
00:19:21,943 --> 00:19:24,745
purchase. And also when you go back to

499
00:19:25,295 --> 00:19:27,855
purchase. Now you wanna pay for those airpods.

500
00:19:28,174 --> 00:19:30,255
They were 300 dollars last week. Now they're

501
00:19:30,255 --> 00:19:32,015
500 dollars. You say, wait a minute. I

502
00:19:32,015 --> 00:19:33,468
don't have any extra dollars to towards this,

503
00:19:33,627 --> 00:19:35,460
I wanted to pay 300 dollars for it,

504
00:19:35,779 --> 00:19:38,169
you can have a trailing effective inflation that

505
00:19:38,169 --> 00:19:40,321
is challenging for you'd to keep up with.

506
00:19:41,211 --> 00:19:43,700
There's also just a lot of governmental inter

507
00:19:43,757 --> 00:19:45,189
interventions and things like setting,

508
00:19:45,984 --> 00:19:46,780
minimum wage.

509
00:19:47,909 --> 00:19:49,427
Hire and higher and higher. Well, then the

510
00:19:49,427 --> 00:19:52,703
company has to pay more to its workers,

511
00:19:52,863 --> 00:19:54,221
which means that either is gonna have to

512
00:19:54,221 --> 00:19:55,954
lay people off or find a way to

513
00:19:56,232 --> 00:19:58,297
become more efficient. It's not all bad, but

514
00:19:58,297 --> 00:20:00,361
the challenge that can happen is that they

515
00:20:00,361 --> 00:20:01,950
may have to raise their prices to increase

516
00:20:01,950 --> 00:20:03,299
their income so they can afford to pay

517
00:20:03,299 --> 00:20:05,223
the workers and it can become a vicious

518
00:20:05,223 --> 00:20:07,849
cycle. So let's go ahead and look at

519
00:20:07,849 --> 00:20:10,157
kind of some of the starting points of

520
00:20:10,157 --> 00:20:12,783
this because I... What's really interesting about the

521
00:20:12,783 --> 00:20:13,283
inflation

522
00:20:14,629 --> 00:20:17,335
challenge. The inflation problem is that there are

523
00:20:17,335 --> 00:20:20,121
roots of it in the federal reserve and

524
00:20:20,121 --> 00:20:22,827
fractional reserve banking system. And so for lack

525
00:20:22,827 --> 00:20:23,327
of

526
00:20:23,797 --> 00:20:25,788
we don't wanna make this an entire history

527
00:20:25,788 --> 00:20:28,336
lesson today, but, Bruce, I think it's really

528
00:20:28,336 --> 00:20:29,075
important for

529
00:20:29,769 --> 00:20:31,463
people who are listening to recognize,

530
00:20:32,173 --> 00:20:34,719
what is happening with banking with the banking

531
00:20:34,719 --> 00:20:37,129
system and fractional reserve banking and why

532
00:20:37,981 --> 00:20:39,016
that is inflationary.

533
00:20:39,589 --> 00:20:43,017
And how we can recognize that deposit banking

534
00:20:43,017 --> 00:20:45,728
and and using using banking as we normally

535
00:20:45,728 --> 00:20:47,981
think of it to get loans and get

536
00:20:48,373 --> 00:20:50,202
cheap capital to be able to invest places

537
00:20:50,202 --> 00:20:53,168
can actually end up as a macro

538
00:20:53,862 --> 00:20:54,737
hurting the economy.

539
00:20:55,868 --> 00:20:58,025
So, Bruce, I'm just gonna share a kind

540
00:20:58,025 --> 00:20:59,383
of a big picture point, and then I'm

541
00:20:59,383 --> 00:21:00,582
gonna let you kind of dive into some

542
00:21:00,582 --> 00:21:02,991
more of these details. But If you look

543
00:21:02,991 --> 00:21:03,730
at the

544
00:21:04,106 --> 00:21:05,939
nature of banking, say you,

545
00:21:06,736 --> 00:21:07,236
deposit

546
00:21:07,772 --> 00:21:08,967
a thousand dollar,

547
00:21:09,778 --> 00:21:12,242
check into the bank. The bank is not

548
00:21:12,242 --> 00:21:12,742
holding

549
00:21:13,197 --> 00:21:15,525
that thousand dollars in cash

550
00:21:16,298 --> 00:21:19,103
behind their safe and their their bars

551
00:21:19,413 --> 00:21:21,324
and every single person who's depositing a thousand

552
00:21:21,324 --> 00:21:23,951
dollars. They're not keeping all of those thousand

553
00:21:23,951 --> 00:21:25,623
dollars for you and a thousand dollars for

554
00:21:25,703 --> 00:21:27,136
Bruce and a thousand dollars for...

555
00:21:27,947 --> 00:21:29,617
Joe Sc on the street and all of

556
00:21:29,617 --> 00:21:31,128
the checks that have been deposited are not

557
00:21:31,128 --> 00:21:34,151
held in the bank. So what is happening,

558
00:21:34,564 --> 00:21:36,792
is they have to keep a portion of

559
00:21:36,792 --> 00:21:37,849
that a fraction

560
00:21:38,384 --> 00:21:40,294
in reserves. And right now that's in the

561
00:21:40,294 --> 00:21:42,363
ballpark of... I think you call it 10

562
00:21:42,363 --> 00:21:43,796
to 1. I don't know if I'm saying

563
00:21:43,796 --> 00:21:45,263
that the ratio correctly

564
00:21:45,954 --> 00:21:47,621
or 1 to 10. Which 1?

565
00:21:50,319 --> 00:21:51,113
1 to 10. Yeah.

566
00:21:51,922 --> 00:21:54,540
Pick 10 they 01:10. Okay. So they have

567
00:21:54,540 --> 00:21:57,182
to keep 1 dollar in reserves for every

568
00:21:57,317 --> 00:21:58,769
dollar that they have pledged

569
00:21:59,079 --> 00:22:01,796
in deposits. So then what happens is they're

570
00:22:01,796 --> 00:22:03,175
able to loan out

571
00:22:03,554 --> 00:22:06,030
additional dollars. And as they loan out additional

572
00:22:06,030 --> 00:22:08,283
dollars, they are able to provide loans into

573
00:22:08,283 --> 00:22:10,521
the economy, which just by the very nature

574
00:22:10,521 --> 00:22:11,400
of getting a loan,

575
00:22:12,679 --> 00:22:15,736
you are creating dollars that did not previously

576
00:22:16,035 --> 00:22:18,546
exist. And because of doing that, it

577
00:22:19,244 --> 00:22:22,059
puts more dollars into the economy by using

578
00:22:22,278 --> 00:22:24,912
loans. And then because of that, there... Those

579
00:22:24,912 --> 00:22:27,183
dollars are worth less. So that's the

580
00:22:27,720 --> 00:22:29,873
definition of inflation. Bruce, I'm gonna have you

581
00:22:29,873 --> 00:22:31,729
just share what your

582
00:22:33,463 --> 00:22:35,377
additional clarity around that idea. And again, I

583
00:22:35,377 --> 00:22:37,226
don't think we need to get deeply into

584
00:22:37,226 --> 00:22:39,938
the weeds and the historical nature of this

585
00:22:39,938 --> 00:22:41,634
and all of the moving parts. But

586
00:22:42,171 --> 00:22:44,644
what do you think is important for somebody

587
00:22:44,644 --> 00:22:47,445
to understand about fractional reserve banking.

588
00:22:49,352 --> 00:22:50,942
Well, I think the first thing is is

589
00:22:50,942 --> 00:22:51,442
that

590
00:22:51,895 --> 00:22:53,881
we ought to go back to the history

591
00:22:53,881 --> 00:22:54,438
of banking.

592
00:22:55,247 --> 00:22:57,395
You know, before there were... The before the

593
00:22:57,395 --> 00:22:57,895
were,

594
00:22:59,702 --> 00:23:00,577
physical banks,

595
00:23:01,532 --> 00:23:01,904
plea

596
00:23:03,303 --> 00:23:05,699
So, anything that they had that was audible

597
00:23:05,699 --> 00:23:08,016
to them. There was a couple of different

598
00:23:08,016 --> 00:23:08,735
things that were...

599
00:23:10,666 --> 00:23:12,742
Couple a couple things that were difficult for

600
00:23:12,742 --> 00:23:14,977
people. 1 is they need to protect any

601
00:23:14,977 --> 00:23:17,691
wealth that they actually had and that wealth

602
00:23:17,691 --> 00:23:18,305
could be

603
00:23:18,821 --> 00:23:20,672
not just what we consider

604
00:23:21,046 --> 00:23:23,509
traditional wealth now. I'm not talking about, like,

605
00:23:24,144 --> 00:23:26,449
people had gold coins that they were... They

606
00:23:26,449 --> 00:23:26,949
would

607
00:23:27,499 --> 00:23:29,816
they would literally just carry around with them,

608
00:23:30,375 --> 00:23:32,293
which was not good. 1, you could lose

609
00:23:32,293 --> 00:23:34,231
them 2, You could very easily

610
00:23:34,690 --> 00:23:37,018
have a person steal them from you.

611
00:23:38,292 --> 00:23:40,842
Secondly, it could be something that was on

612
00:23:40,842 --> 00:23:42,196
the barter system before.

613
00:23:43,007 --> 00:23:45,492
Where you might have chickens or cows or

614
00:23:45,706 --> 00:23:48,247
grain or something that you were barter. The

615
00:23:48,247 --> 00:23:50,867
same thing as it's very clunky. There's a

616
00:23:50,867 --> 00:23:51,422
lot of it.

617
00:23:52,074 --> 00:23:53,132
You would have difficulty

618
00:23:54,066 --> 00:23:56,697
trading because you... To... If your wealth was

619
00:23:56,697 --> 00:23:57,653
tied up in chickens,

620
00:23:58,132 --> 00:23:59,806
and you needed lumber,

621
00:24:00,219 --> 00:24:01,677
and that person didn't

622
00:24:02,374 --> 00:24:05,007
need chickens, well that was very difficult then

623
00:24:05,007 --> 00:24:06,523
in a barter system. Mh.

624
00:24:06,922 --> 00:24:09,885
And so then, currency type systems came around.

625
00:24:11,001 --> 00:24:11,957
The first banks...

626
00:24:12,594 --> 00:24:14,528
Excuse me. The first banks were not

627
00:24:15,064 --> 00:24:16,896
because people were trying to get look,

628
00:24:19,923 --> 00:24:21,904
They were actually because people were trying to

629
00:24:21,904 --> 00:24:24,043
get protection on their money.

630
00:24:24,692 --> 00:24:28,048
So they would actually pay to protect their

631
00:24:28,421 --> 00:24:28,921
delivering

632
00:24:29,849 --> 00:24:32,388
coins or other things that they had,

633
00:24:32,959 --> 00:24:34,953
and they would pay somebody to protect them.

634
00:24:35,671 --> 00:24:37,447
Well, what they quickly realized

635
00:24:37,825 --> 00:24:39,978
when they were doing this, and there's a

636
00:24:39,978 --> 00:24:42,825
great... There's some great Youtube videos on this

637
00:24:42,864 --> 00:24:45,252
from Khan academy, KHAN,

638
00:24:45,969 --> 00:24:47,663
academy, great educational

639
00:24:48,755 --> 00:24:49,232
platform.

640
00:24:49,630 --> 00:24:51,874
It's it's from you know, you might call

641
00:24:51,874 --> 00:24:54,022
us bias, but I would say that most

642
00:24:54,022 --> 00:24:55,932
people don't think on academy as biased.

643
00:24:56,569 --> 00:24:58,160
And I try not to be biased. I'm

644
00:24:58,160 --> 00:24:59,672
just trying to give you some facts here.

645
00:25:00,564 --> 00:25:02,342
Is that they... These these

646
00:25:02,881 --> 00:25:04,020
us banks

647
00:25:04,559 --> 00:25:05,298
soon real

648
00:25:05,837 --> 00:25:07,375
that a lot of people

649
00:25:07,769 --> 00:25:09,685
we're not coming back all the same time

650
00:25:09,685 --> 00:25:11,383
and asking for their gold and silver

651
00:25:11,841 --> 00:25:13,837
points. So then they said to themselves,

652
00:25:14,955 --> 00:25:16,871
what if we even start to lend this

653
00:25:16,871 --> 00:25:18,797
out As long as we don't lend too

654
00:25:18,797 --> 00:25:21,025
much out, a lot of people won't come

655
00:25:21,025 --> 00:25:22,139
back and we'll be fine.

656
00:25:23,332 --> 00:25:25,162
So they started lending it out and it

657
00:25:25,162 --> 00:25:26,117
at an interest rate,

658
00:25:26,769 --> 00:25:28,445
and then then they would get paid back.

659
00:25:29,642 --> 00:25:31,637
Well, then they... That sort of working pretty

660
00:25:31,637 --> 00:25:33,633
well, but they got nervous because too much

661
00:25:33,633 --> 00:25:35,802
of that money was out, so they said

662
00:25:35,802 --> 00:25:37,578
how can we inc people

663
00:25:38,115 --> 00:25:39,710
to bring more money to the bank?

664
00:25:40,986 --> 00:25:42,741
Well, the way they can inc them is

665
00:25:42,741 --> 00:25:45,230
to pay them to access the gap little.

666
00:25:45,789 --> 00:25:47,869
So they said announce instead of paying us,

667
00:25:49,149 --> 00:25:51,490
we actually going to give you

668
00:25:51,950 --> 00:25:54,509
an interest rate just to bring your money

669
00:25:54,509 --> 00:25:55,162
to bank.

670
00:25:56,595 --> 00:25:59,461
And when they... Did that then, now they

671
00:25:59,461 --> 00:26:00,200
would have

672
00:26:01,213 --> 00:26:04,178
more money to lend out our but really,

673
00:26:04,577 --> 00:26:07,134
they can never lend out more money than

674
00:26:07,134 --> 00:26:07,933
they had in the bank.

675
00:26:09,450 --> 00:26:09,950
So

676
00:26:10,662 --> 00:26:12,252
that was kind of a 1 on 1.

677
00:26:12,490 --> 00:26:14,160
Now they had to be pretty smart about

678
00:26:14,160 --> 00:26:16,307
it. They they didn't wanna go 2 2

679
00:26:16,307 --> 00:26:18,454
and too far into the reserves. Because what

680
00:26:18,454 --> 00:26:20,854
if a lot of people actually thing for

681
00:26:20,854 --> 00:26:22,763
the money. That's called a run on the

682
00:26:22,763 --> 00:26:22,922
bank.

683
00:26:24,593 --> 00:26:25,093
And

684
00:26:26,422 --> 00:26:26,922
still

685
00:26:27,312 --> 00:26:28,289
then what was

686
00:26:28,743 --> 00:26:29,141
replaced,

687
00:26:30,571 --> 00:26:31,128
I would say,

688
00:26:32,718 --> 00:26:33,218
somewhat

689
00:26:33,672 --> 00:26:34,172
responsibly

690
00:26:35,038 --> 00:26:37,182
although, I don't... I don't didn't necessarily agree

691
00:26:37,182 --> 00:26:40,121
with it, but somewhat responsibly is, the Federal

692
00:26:40,121 --> 00:26:42,583
reserve system said, you... We could actually...

693
00:26:43,394 --> 00:26:45,890
We can... You could actually lend to banks

694
00:26:46,826 --> 00:26:49,381
overnight lending and keep the reserves of a

695
00:26:49,381 --> 00:26:52,036
certain amount, and you have to pay us

696
00:26:52,429 --> 00:26:54,902
to actually give you those those reserves.

697
00:26:55,619 --> 00:26:57,613
Well, that just meant they had more money.

698
00:26:58,411 --> 00:27:00,325
And so if they had more money, now

699
00:27:00,325 --> 00:27:02,181
they don't have to worry about as many

700
00:27:02,333 --> 00:27:03,626
people coming back

701
00:27:03,998 --> 00:27:06,718
and the Federal Reserve set that at somewhere

702
00:27:07,169 --> 00:27:09,469
at 10 percent because they would cover it.

703
00:27:09,865 --> 00:27:09,920
People

704
00:27:10,676 --> 00:27:13,066
Now and actually the at at at times

705
00:27:13,066 --> 00:27:13,885
of the great

706
00:27:14,261 --> 00:27:16,173
recession, I believe they actually took off some

707
00:27:16,173 --> 00:27:18,802
of those reserve requirements. It was even worse.

708
00:27:19,934 --> 00:27:22,414
Now, so if you understand that where they

709
00:27:22,414 --> 00:27:24,174
say you only really have to have 10

710
00:27:24,174 --> 00:27:26,515
percent and I actually experience. I talked this

711
00:27:26,575 --> 00:27:28,015
about this on a podcast before.

712
00:27:28,827 --> 00:27:30,758
I went to my bank 1 Thursday.

713
00:27:31,689 --> 00:27:33,120
It might have been a Tuesday. Yeah. Was

714
00:27:33,120 --> 00:27:33,597
a tuesday,

715
00:27:34,074 --> 00:27:36,300
and I said, I'd like to get 5000

716
00:27:36,300 --> 00:27:38,105
dollars of cash because I was gonna go

717
00:27:38,383 --> 00:27:39,337
buy some silver.

718
00:27:40,212 --> 00:27:41,109
And and

719
00:27:41,882 --> 00:27:43,313
they wouldn't give it to me because they

720
00:27:43,313 --> 00:27:45,460
said they didn't have it at the bank,

721
00:27:45,778 --> 00:27:47,528
they would fall below their reserves.

722
00:27:48,815 --> 00:27:50,722
And they said you we're gonna to be

723
00:27:50,722 --> 00:27:52,947
clear. You weren't asking for a loan. You

724
00:27:52,947 --> 00:27:55,410
are asking for your money. I much for

725
00:27:55,410 --> 00:27:57,975
my money account. Yes. Yes. Yes. And I

726
00:27:57,975 --> 00:28:00,055
had a lot more than 5000 dollars in

727
00:28:00,055 --> 00:28:00,535
that account.

728
00:28:02,215 --> 00:28:03,414
And they said you have to come back

729
00:28:03,414 --> 00:28:05,105
on Thursday because gonna have to order it

730
00:28:05,105 --> 00:28:06,379
well where do they get it? They get

731
00:28:06,379 --> 00:28:07,733
it from their Federal reserve. So I went...

732
00:28:07,971 --> 00:28:09,007
I came back on Thursday.

733
00:28:09,644 --> 00:28:11,555
So if you think all your money is

734
00:28:11,555 --> 00:28:14,826
in the bank, we're you're you're badly mistaken.

735
00:28:15,064 --> 00:28:17,151
So what that happens then is that means

736
00:28:17,365 --> 00:28:19,190
that if they only have to have a

737
00:28:19,190 --> 00:28:20,777
reserve requirement of 10 percent,

738
00:28:21,268 --> 00:28:24,621
it's actually even worse than we've already started

739
00:28:24,675 --> 00:28:25,492
because now

740
00:28:26,023 --> 00:28:28,084
I lend it to a construction company.

741
00:28:29,130 --> 00:28:32,623
A construction company actually purchases equipment and supplies.

742
00:28:33,576 --> 00:28:35,663
They also pay their workers.

743
00:28:36,926 --> 00:28:40,267
The workers and those supplied companies now take

744
00:28:40,267 --> 00:28:42,494
that money, and they put it in their

745
00:28:42,494 --> 00:28:42,733
bank.

746
00:28:44,105 --> 00:28:45,404
So it builds up

747
00:28:45,944 --> 00:28:46,444
the

748
00:28:46,904 --> 00:28:49,784
fractional reserve in their in that particular bank.

749
00:28:50,585 --> 00:28:51,704
That bank now,

750
00:28:52,836 --> 00:28:55,487
is now allowed to lend it to

751
00:28:55,863 --> 00:28:59,049
their people that they have relationships with, and

752
00:28:59,049 --> 00:29:00,721
it just keeps getting repeated,

753
00:29:01,533 --> 00:29:02,568
repeat it, repeat it.

754
00:29:03,286 --> 00:29:05,538
And the federal reserve then will actually

755
00:29:05,915 --> 00:29:06,415
change

756
00:29:07,429 --> 00:29:09,672
change how fast it flows in and out

757
00:29:09,672 --> 00:29:11,286
on a very. This is a very rudimentary

758
00:29:11,582 --> 00:29:14,047
way of of thinking about it. But by

759
00:29:14,047 --> 00:29:15,263
lowering and

760
00:29:15,734 --> 00:29:18,615
or she be lower and and raising interest

761
00:29:18,615 --> 00:29:20,315
rates because it'll will slow

762
00:29:20,615 --> 00:29:22,534
how much people will people will take it

763
00:29:22,534 --> 00:29:24,269
out. And the other thing they will do

764
00:29:24,547 --> 00:29:25,920
And this also causes

765
00:29:26,847 --> 00:29:28,617
some inflationary processes

766
00:29:29,544 --> 00:29:30,044
is

767
00:29:30,734 --> 00:29:32,083
they will actually...

768
00:29:32,812 --> 00:29:34,717
Not even approved loans.

769
00:29:35,114 --> 00:29:38,131
It's happening right now. They're nervous about the

770
00:29:38,131 --> 00:29:39,901
economy so that they have tightened

771
00:29:40,765 --> 00:29:43,303
the loan that they will give to certain

772
00:29:43,303 --> 00:29:45,285
people. Mh. It's not only in the interest

773
00:29:45,285 --> 00:29:47,506
rates, but they will tighten the loans that

774
00:29:47,506 --> 00:29:49,673
they will give. For people to buy homes

775
00:29:49,673 --> 00:29:51,990
because they're worried about the housing mark market

776
00:29:51,990 --> 00:29:54,547
crash. So they will... Their collateral will go

777
00:29:54,547 --> 00:29:56,680
down. Well, that means you have

778
00:29:57,039 --> 00:29:58,018
more people

779
00:29:58,635 --> 00:30:00,312
that cannot get loans,

780
00:30:00,871 --> 00:30:04,942
and so you have a situation where housing

781
00:30:04,942 --> 00:30:05,660
prices now,

782
00:30:06,394 --> 00:30:08,494
because the builders can't build more

783
00:30:09,195 --> 00:30:10,335
and because

784
00:30:11,434 --> 00:30:13,434
the because the interest rates would do I

785
00:30:13,434 --> 00:30:15,769
and the people that are sitting in homes

786
00:30:15,769 --> 00:30:18,730
that would like to either downsize or go

787
00:30:18,730 --> 00:30:21,529
up in a home, they have interest rates

788
00:30:21,529 --> 00:30:23,309
that are very, very low

789
00:30:23,944 --> 00:30:26,341
from the last 10:12 years, and they're like,

790
00:30:26,501 --> 00:30:29,078
well, if I move now, I'm gonna get

791
00:30:29,616 --> 00:30:31,708
a higher interest rate, so I'm not gonna

792
00:30:31,708 --> 00:30:34,202
move. So the inventory is way down

793
00:30:34,899 --> 00:30:38,411
for this. So supply and demand now does...

794
00:30:38,809 --> 00:30:40,572
So pay there's not very many homes.

795
00:30:41,287 --> 00:30:41,787
So

796
00:30:42,479 --> 00:30:45,601
there's more dollars that from the baby boomer

797
00:30:45,736 --> 00:30:48,697
generation that don't need loans. To actually chase

798
00:30:48,697 --> 00:30:49,197
this

799
00:30:49,654 --> 00:30:52,927
these fewer homes, and that causes prices to

800
00:30:52,927 --> 00:30:55,003
go up. That's been going on for about

801
00:30:55,003 --> 00:30:56,301
2 years. I just saw

802
00:30:56,694 --> 00:30:59,244
where it's actually flattened out last month for

803
00:30:59,244 --> 00:31:01,475
the first time. Be... And that's and that's

804
00:31:01,475 --> 00:31:04,207
part of what we wanna communicate in this

805
00:31:04,599 --> 00:31:07,792
particular podcast is, yes, you're gonna see these

806
00:31:07,792 --> 00:31:08,830
wild swings.

807
00:31:09,788 --> 00:31:13,061
But if eventually the equilibrium is going to

808
00:31:13,061 --> 00:31:13,460
happen,

809
00:31:14,351 --> 00:31:16,019
The right amount of dollars are gonna be

810
00:31:16,019 --> 00:31:17,529
chasing the right amount of goods,

811
00:31:18,085 --> 00:31:20,071
and you're gonna have not a flat line,

812
00:31:20,230 --> 00:31:22,057
but you're gonna you're gonna smooth out these

813
00:31:22,057 --> 00:31:23,407
prices going up and down.

814
00:31:24,935 --> 00:31:26,528
That's the way the austrians would like it.

815
00:31:26,767 --> 00:31:27,267
Quit

816
00:31:27,962 --> 00:31:28,462
manipulating

817
00:31:28,998 --> 00:31:31,149
to try to get what you want and

818
00:31:31,149 --> 00:31:32,981
just let the free market decide.

819
00:31:33,872 --> 00:31:34,905
What the prices are.

820
00:31:36,415 --> 00:31:38,640
What's really interesting about all of this as

821
00:31:38,640 --> 00:31:41,819
well is that you have the loan...

822
00:31:42,869 --> 00:31:43,269
System,

823
00:31:44,390 --> 00:31:47,029
within the banking function is that if you

824
00:31:47,029 --> 00:31:50,070
have say you've deposited your thousand dollar check.

825
00:31:50,470 --> 00:31:51,610
That now becomes

826
00:31:52,164 --> 00:31:54,105
if you're they're in a 1 to 10

827
00:31:54,484 --> 00:31:55,784
ratio of their reserve

828
00:31:56,085 --> 00:31:56,565
requirement,

829
00:31:56,964 --> 00:31:58,184
that thousand dollars

830
00:31:59,044 --> 00:31:59,845
becomes the reserve,

831
00:32:00,419 --> 00:32:02,485
for which they can then loan out an

832
00:32:02,485 --> 00:32:04,075
additional 9000 dollars.

833
00:32:05,188 --> 00:32:06,539
Bruce correctly me, if I'm wrong on the

834
00:32:06,539 --> 00:32:08,129
math there, but you put in a thousand

835
00:32:08,129 --> 00:32:10,133
dollars that becomes a reserve They can loan

836
00:32:10,133 --> 00:32:13,424
out 9000 additional dollars. So you've... You're creating

837
00:32:14,360 --> 00:32:15,179
Yeah dollars

838
00:32:15,556 --> 00:32:17,630
by your deposit and what happens is that

839
00:32:17,630 --> 00:32:21,250
that is an inflationary act. Even just having

840
00:32:21,386 --> 00:32:23,712
dollars on deposit with a bank and then

841
00:32:23,768 --> 00:32:25,991
participating in the loan system as well. And

842
00:32:25,991 --> 00:32:27,817
so when you look at a macro level

843
00:32:27,817 --> 00:32:30,080
when you have everyone using that

844
00:32:30,694 --> 00:32:33,501
fractional reserve banking system as a deposit mechanism

845
00:32:33,717 --> 00:32:35,625
and then relying on loans to be able

846
00:32:35,625 --> 00:32:37,080
to finance their purchases

847
00:32:37,867 --> 00:32:39,083
all of that is

848
00:32:39,777 --> 00:32:40,174
inflationary.

849
00:32:41,288 --> 00:32:41,527
Yeah.

850
00:32:42,402 --> 00:32:44,152
It, yes. It is. And...

851
00:32:44,724 --> 00:32:46,821
You know, we we have some great dialogue

852
00:32:46,960 --> 00:32:47,439
going on.

853
00:32:48,396 --> 00:32:50,014
I think this shows just how

854
00:32:50,632 --> 00:32:53,506
frustrated people are on both sides of the

855
00:32:53,506 --> 00:32:53,745
issue.

856
00:32:55,599 --> 00:32:56,099
And

857
00:32:56,559 --> 00:32:57,599
I wanna get back

858
00:32:58,000 --> 00:32:58,720
a little bit.

859
00:32:59,359 --> 00:33:00,819
Once again, I must not be

860
00:33:02,000 --> 00:33:02,500
communicating

861
00:33:03,212 --> 00:33:05,281
really well. So, like Mali says,

862
00:33:06,077 --> 00:33:06,577
a

863
00:33:06,952 --> 00:33:07,112
negotiation...

864
00:33:07,907 --> 00:33:08,067
She

865
00:33:08,783 --> 00:33:11,367
She she doesn't agree with me. That you're

866
00:33:11,423 --> 00:33:13,411
negotiating in all prices because she says try

867
00:33:13,411 --> 00:33:14,945
to do that at costco

868
00:33:15,399 --> 00:33:16,432
or pane narrow bread.

869
00:33:17,387 --> 00:33:17,546
Well,

870
00:33:18,753 --> 00:33:21,394
I would agree that you you yourself

871
00:33:21,925 --> 00:33:24,407
cannot go into Costco or Pane

872
00:33:25,018 --> 00:33:26,207
and say to Pane,

873
00:33:26,698 --> 00:33:28,607
I'm not gonna pay you 3 dollars for

874
00:33:28,607 --> 00:33:29,562
the cup of coffee.

875
00:33:30,357 --> 00:33:32,505
I'm only gonna pay you 02:50 will you

876
00:33:32,505 --> 00:33:32,823
take it?

877
00:33:33,714 --> 00:33:35,315
But if you choose not to shop there

878
00:33:35,315 --> 00:33:36,914
because you shop somewhere else. And if enough

879
00:33:36,914 --> 00:33:38,755
people do that, I mean, that is negotiating

880
00:33:38,755 --> 00:33:41,075
interest. Exactly right. That is negotiating prices. And

881
00:33:41,075 --> 00:33:42,275
that's the point I'm making the same with

882
00:33:42,355 --> 00:33:42,755
Costco.

883
00:33:43,250 --> 00:33:44,930
If you go into Costco and you say,

884
00:33:45,570 --> 00:33:49,009
oh, this roti chicken, you have said at

885
00:33:49,009 --> 00:33:49,809
7 dollars,

886
00:33:50,304 --> 00:33:51,576
But at the end of the day, they

887
00:33:51,576 --> 00:33:54,460
still have 2 dozen roti chicken sitting there

888
00:33:55,073 --> 00:33:56,050
because people

889
00:33:56,503 --> 00:33:59,047
people did not buy them and they left.

890
00:33:59,698 --> 00:34:02,564
Without buying them, the next day, if they

891
00:34:02,564 --> 00:34:04,952
have any sense, maybe not exactly the next.

892
00:34:05,031 --> 00:34:06,225
Day they may... They might try it for

893
00:34:06,225 --> 00:34:08,387
a week or so They're gonna say, oh,

894
00:34:08,546 --> 00:34:09,896
we're not selling this a 7,

895
00:34:10,691 --> 00:34:12,200
so we're gonna lower on the sixth. So

896
00:34:12,200 --> 00:34:13,573
you're not negotiating

897
00:34:14,026 --> 00:34:15,218
individually with your voice.

898
00:34:15,789 --> 00:34:17,719
But you're negotiating with

899
00:34:18,332 --> 00:34:20,876
what you're buying, you and all the other

900
00:34:20,876 --> 00:34:23,181
citizens that are going into those. Thanks. Well,

901
00:34:23,419 --> 00:34:25,605
because really, every single... Purchasing

902
00:34:25,905 --> 00:34:26,965
decision you're making

903
00:34:27,344 --> 00:34:27,664
is

904
00:34:30,224 --> 00:34:30,724
ascertain

905
00:34:31,184 --> 00:34:34,239
your value. I mean, it is stating with

906
00:34:34,239 --> 00:34:36,480
your actions, what your value is and what

907
00:34:36,480 --> 00:34:38,260
you're willing to pay. I mean, if somebody

908
00:34:38,880 --> 00:34:40,960
was going to... You're gonna hire a landscape

909
00:34:40,960 --> 00:34:42,480
for your lawn, and they're gonna tell you

910
00:34:42,480 --> 00:34:45,449
it's gonna cost you 14000 dollars to mow

911
00:34:45,449 --> 00:34:47,204
your grass each week. I mean, depending on

912
00:34:47,204 --> 00:34:48,880
the size of your lawn and the beauty

913
00:34:48,880 --> 00:34:51,526
of of your mowing job, I mean, most

914
00:34:51,526 --> 00:34:53,355
people probably aren't gonna pay 14000 dollars to

915
00:34:53,355 --> 00:34:55,820
have their their lawn manic per week. And

916
00:34:55,820 --> 00:34:57,569
so if you... If they set a price

917
00:34:57,569 --> 00:34:58,842
too high, no one's going to be able

918
00:34:58,842 --> 00:35:00,193
to make that purchase or no one's gonna

919
00:35:00,193 --> 00:35:02,280
choose to make that purchase. If the price

920
00:35:02,280 --> 00:35:02,780
is

921
00:35:03,317 --> 00:35:05,710
extremely low then the demand will be such

922
00:35:05,710 --> 00:35:07,225
that they won't be able to have enough

923
00:35:07,225 --> 00:35:09,060
supply to meet that. And so that's what

924
00:35:09,060 --> 00:35:10,597
you're talking about with the free market

925
00:35:11,546 --> 00:35:14,330
fluctuating or changing their prices based on the

926
00:35:14,330 --> 00:35:16,398
vote of the consumers as a as a

927
00:35:16,398 --> 00:35:17,273
macro as a whole.

928
00:35:18,241 --> 00:35:18,479
Mh.

929
00:35:19,113 --> 00:35:21,412
Yeah. And thanks for everybody that participant and

930
00:35:21,492 --> 00:35:23,315
I... We see our regular listener Fritz,

931
00:35:24,980 --> 00:35:25,218
actually,

932
00:35:26,266 --> 00:35:28,575
chi in. Thanks for fritz. This was actually,

933
00:35:29,371 --> 00:35:31,940
this episode was inspired by Fritz

934
00:35:32,396 --> 00:35:33,351
comment last week,

935
00:35:34,003 --> 00:35:35,598
And so now we'd like to finish up

936
00:35:35,598 --> 00:35:39,267
by actually talking about how, if you believe

937
00:35:39,267 --> 00:35:39,767
that

938
00:35:40,144 --> 00:35:42,219
fractional reserve banking. I'm and I'm not saying

939
00:35:42,219 --> 00:35:43,096
you have to believe this.

940
00:35:44,621 --> 00:35:46,367
Because there's a lot of people that obviously

941
00:35:46,367 --> 00:35:48,748
don't believe it. But if you believe that

942
00:35:48,748 --> 00:35:51,708
fractional reserve banking is actually hurting

943
00:35:52,973 --> 00:35:53,473
society,

944
00:35:54,330 --> 00:35:57,044
then you can actually succeed from the from

945
00:35:57,044 --> 00:35:57,783
the system

946
00:35:58,241 --> 00:35:59,619
and the same thing

947
00:35:59,997 --> 00:36:00,896
should happen

948
00:36:01,527 --> 00:36:04,232
because if you say to yourself, I wanna

949
00:36:04,232 --> 00:36:05,447
actually just save

950
00:36:06,220 --> 00:36:07,334
before I purchase.

951
00:36:08,541 --> 00:36:10,922
If you say before you purchase, you're not

952
00:36:10,922 --> 00:36:11,898
using a banking

953
00:36:12,350 --> 00:36:12,588
institution,

954
00:36:13,461 --> 00:36:16,239
that will actually have your dollars to inflate.

955
00:36:17,289 --> 00:36:18,508
Because then they can't

956
00:36:19,367 --> 00:36:19,867
actually

957
00:36:21,125 --> 00:36:23,602
do fractional reserve and as Rebecca Wi Pointed

958
00:36:23,602 --> 00:36:25,201
out, and I and I did too,

959
00:36:26,413 --> 00:36:27,707
the reserve requirement

960
00:36:28,239 --> 00:36:30,700
temporarily is actually sometimes 0.

961
00:36:31,653 --> 00:36:33,638
And so if you want succeed from that

962
00:36:33,638 --> 00:36:34,932
because you think morally

963
00:36:35,638 --> 00:36:38,206
And you also think it's better a system

964
00:36:38,262 --> 00:36:38,762
for

965
00:36:39,216 --> 00:36:41,045
the economy that you're living in,

966
00:36:41,920 --> 00:36:43,987
you could say instead of putting my money

967
00:36:43,987 --> 00:36:44,965
in a bank

968
00:36:45,594 --> 00:36:48,231
you could actually put it it with an

969
00:36:48,231 --> 00:36:49,130
insurance company

970
00:36:49,909 --> 00:36:52,487
because an insurance company will let you borrow

971
00:36:52,546 --> 00:36:53,845
against your money

972
00:36:54,798 --> 00:36:56,416
but they will not let you borrow

973
00:36:56,873 --> 00:36:58,390
any more than the money you have in

974
00:36:58,390 --> 00:36:58,789
the bank,

975
00:36:59,428 --> 00:37:01,605
and they won't let anybody else

976
00:37:02,063 --> 00:37:03,340
borrow against your money.

977
00:37:04,391 --> 00:37:06,324
So it's a 1 to 1

978
00:37:07,018 --> 00:37:07,518
lateral

979
00:37:08,213 --> 00:37:10,703
that is actually happening. So there's no fractional

980
00:37:10,840 --> 00:37:11,716
reserve going on there.

981
00:37:12,527 --> 00:37:14,434
Which means if you have a hundred thousand

982
00:37:14,434 --> 00:37:16,341
dollars of cash value, and Bruce we talked

983
00:37:16,341 --> 00:37:17,931
about this right before the show. But if

984
00:37:17,931 --> 00:37:19,361
you have a hundred thousand dollars of cash

985
00:37:19,361 --> 00:37:20,894
value inside of your

986
00:37:21,445 --> 00:37:23,764
specially design whole life insurance policy designed for

987
00:37:23,764 --> 00:37:24,324
infinite banking.

988
00:37:25,204 --> 00:37:28,644
You can borrow against that hundred thousand, but

989
00:37:28,644 --> 00:37:30,164
they don't have the ability to go turn

990
00:37:30,164 --> 00:37:31,399
that hundred thousand

991
00:37:31,778 --> 00:37:34,335
into a million dollars through fractional reserve banking.

992
00:37:34,495 --> 00:37:36,114
They can't just lend out

993
00:37:36,652 --> 00:37:38,970
a a million dollars on your hundred thousand

994
00:37:38,970 --> 00:37:41,141
dollars, in cash value, which is like a

995
00:37:41,141 --> 00:37:41,779
deposit with them.

996
00:37:42,737 --> 00:37:43,237
So

997
00:37:43,934 --> 00:37:44,673
you also

998
00:37:45,131 --> 00:37:47,286
said, and we've said before on the show

999
00:37:47,286 --> 00:37:49,718
multiple times that they have even more than

1000
00:37:49,777 --> 00:37:51,456
just dollar for dollar reserves. Can you speak

1001
00:37:51,456 --> 00:37:52,095
to that for a minute?

1002
00:37:52,894 --> 00:37:55,072
Yeah. So the top the top

1003
00:37:55,532 --> 00:37:56,970
10 mutual companies?

1004
00:37:57,782 --> 00:38:01,461
On average actually have 7 dollars more

1005
00:38:02,074 --> 00:38:02,472
than a,

1006
00:38:03,266 --> 00:38:05,333
100 percent reserve. So they have a hundred

1007
00:38:05,333 --> 00:38:06,469
and 7 dollars

1008
00:38:06,779 --> 00:38:10,147
for every 100 dollars that they have cash

1009
00:38:10,921 --> 00:38:12,833
value promise. Now, where do they get that

1010
00:38:12,833 --> 00:38:14,984
extra money? Well, they got it from their

1011
00:38:14,984 --> 00:38:15,484
investments

1012
00:38:16,514 --> 00:38:19,234
that they actually made on the premium dollars.

1013
00:38:20,434 --> 00:38:21,954
They then take those that,

1014
00:38:22,675 --> 00:38:24,675
we talked about this last week. They take

1015
00:38:24,675 --> 00:38:27,563
those premium dollars. They put them to work.

1016
00:38:28,521 --> 00:38:29,639
They have expenses.

1017
00:38:30,117 --> 00:38:30,915
They make money,

1018
00:38:31,633 --> 00:38:34,301
then they have a profit and because it's

1019
00:38:34,358 --> 00:38:35,972
mutual, they share

1020
00:38:36,346 --> 00:38:37,721
the profit with

1021
00:38:38,573 --> 00:38:40,958
the policy holders because you're part owner of

1022
00:38:40,958 --> 00:38:42,726
the company in the form of a dividend,

1023
00:38:42,886 --> 00:38:43,923
but they do not...

1024
00:38:44,722 --> 00:38:46,637
They actually put it some of that profit

1025
00:38:46,637 --> 00:38:48,972
in a 2 additional reserve requirements

1026
00:38:49,524 --> 00:38:51,942
So that's where they build up that reserve

1027
00:38:52,321 --> 00:38:53,780
reserve requirements from

1028
00:38:54,318 --> 00:38:54,638
the

1029
00:38:55,197 --> 00:38:57,435
profits that the mutual company has made.

1030
00:38:59,608 --> 00:39:01,626
So the reason why

1031
00:39:02,484 --> 00:39:05,461
using a whole life insurance policy is different

1032
00:39:05,521 --> 00:39:08,885
than using this standard banking systems, specifically with

1033
00:39:08,885 --> 00:39:11,536
the federal reserve and the

1034
00:39:12,151 --> 00:39:14,541
deposit mechanism of putting dollars into a bank

1035
00:39:14,541 --> 00:39:16,809
and having the bank then loan out capital

1036
00:39:17,027 --> 00:39:19,180
and having that fractional reserve banking. The reason

1037
00:39:19,180 --> 00:39:22,130
why infinite banking is different is because you're

1038
00:39:22,130 --> 00:39:24,762
not in in in you're not creating an

1039
00:39:24,762 --> 00:39:27,425
inflationary event by creating additional dollars

1040
00:39:27,957 --> 00:39:30,894
when you are using your life insurance policy.

1041
00:39:31,053 --> 00:39:33,379
And the value of that is that on

1042
00:39:33,689 --> 00:39:36,238
a, Bruce you mentioned moral... On a moral

1043
00:39:36,238 --> 00:39:38,947
basis, on a personal basis, you are saying

1044
00:39:39,106 --> 00:39:40,563
I'm not choosing to

1045
00:39:41,351 --> 00:39:42,885
create this inflationary

1046
00:39:44,771 --> 00:39:45,271
environment

1047
00:39:45,965 --> 00:39:48,271
atmosphere for the rest of the economy. Now

1048
00:39:48,271 --> 00:39:50,195
if enough people did that, and enough people

1049
00:39:50,195 --> 00:39:52,262
said I'm going to take control of my

1050
00:39:52,262 --> 00:39:53,318
own financial

1051
00:39:53,772 --> 00:39:56,418
landscape in my own personal economy, and I

1052
00:39:56,475 --> 00:39:59,193
am going to save before I spend. I'm

1053
00:39:59,193 --> 00:40:00,866
going to build up capital, and I'm going

1054
00:40:00,866 --> 00:40:02,460
to borrow against my capital, and I'm going

1055
00:40:02,460 --> 00:40:04,553
to be in a position where my dollars

1056
00:40:04,610 --> 00:40:04,770
are,

1057
00:40:06,297 --> 00:40:08,857
Not inflationary dollars. That doesn't mean you're gonna

1058
00:40:08,991 --> 00:40:11,368
prevent all inflation from happening, but it does

1059
00:40:11,368 --> 00:40:13,244
mean if there's enough people doing that that

1060
00:40:13,443 --> 00:40:15,672
you're in a position where you're taking control

1061
00:40:15,672 --> 00:40:17,822
and rather than just being in a position

1062
00:40:17,822 --> 00:40:18,481
where you're

1063
00:40:18,936 --> 00:40:20,608
storing capital at the banks, and then you're

1064
00:40:20,608 --> 00:40:21,108
borrowing

1065
00:40:21,419 --> 00:40:23,172
their money, you're in a position where you

1066
00:40:23,172 --> 00:40:24,765
are able to borrow against your own capital,

1067
00:40:25,084 --> 00:40:27,178
which frees you then from

1068
00:40:27,873 --> 00:40:30,117
creating inflation and you're in a position where

1069
00:40:30,117 --> 00:40:32,344
your decisions that you're making are creating a

1070
00:40:32,344 --> 00:40:34,651
sound money personal economy for yourself.

1071
00:40:35,685 --> 00:40:36,415
And Yeah. And then,

1072
00:40:37,289 --> 00:40:39,036
you there's so many comments today that I...

1073
00:40:39,194 --> 00:40:40,147
We're not gonna get to all of them,

1074
00:40:40,306 --> 00:40:42,450
But I would like to get to 1

1075
00:40:42,450 --> 00:40:44,356
more, and and I... And I'm not a

1076
00:40:44,356 --> 00:40:46,760
linguist, so... Not sure how you pronounce your

1077
00:40:46,760 --> 00:40:47,318
first name,

1078
00:40:48,195 --> 00:40:50,291
e El or Molina.

1079
00:40:51,784 --> 00:40:54,655
He... He or she doesn't agree with me

1080
00:40:54,655 --> 00:40:54,949
that

1081
00:40:56,190 --> 00:40:59,309
the car is not negotiated because there is

1082
00:40:59,309 --> 00:41:00,449
a blue book

1083
00:41:00,750 --> 00:41:01,789
that sets the price,

1084
00:41:02,429 --> 00:41:03,150
you should be paying.

1085
00:41:04,439 --> 00:41:06,507
I think you should research that because all

1086
00:41:06,507 --> 00:41:08,598
the blue book value is

1087
00:41:09,132 --> 00:41:09,769
is a comp...

1088
00:41:11,618 --> 00:41:12,118
Culmination

1089
00:41:12,577 --> 00:41:14,036
of how all those

1090
00:41:15,373 --> 00:41:17,471
models and years of the car

1091
00:41:18,421 --> 00:41:19,376
have been selling.

1092
00:41:19,853 --> 00:41:22,160
So they're just taking all of the prices

1093
00:41:22,160 --> 00:41:24,251
that those cars have been selling

1094
00:41:25,675 --> 00:41:26,891
across the nation

1095
00:41:27,267 --> 00:41:28,563
and then getting an average

1096
00:41:29,018 --> 00:41:30,711
and telling you this is what

1097
00:41:31,326 --> 00:41:34,293
the average person has been has been

1098
00:41:35,164 --> 00:41:36,204
paying for this car.

1099
00:41:36,765 --> 00:41:37,985
So it is

1100
00:41:38,765 --> 00:41:39,265
a

1101
00:41:39,644 --> 00:41:40,704
negotiation price

1102
00:41:41,244 --> 00:41:41,744
average.

1103
00:41:42,445 --> 00:41:44,697
Blue book is in the company that just

1104
00:41:44,697 --> 00:41:45,015
says,

1105
00:41:45,810 --> 00:41:47,799
oh, I think and it should be this.

1106
00:41:48,594 --> 00:41:50,287
Blue book is just comp

1107
00:41:51,714 --> 00:41:53,013
all the records

1108
00:41:53,871 --> 00:41:56,529
of how these cars and trucks have been

1109
00:41:56,748 --> 00:41:58,927
selling. And if you don't lay me just

1110
00:41:59,306 --> 00:42:01,392
research on that. It's like the number that's

1111
00:42:01,392 --> 00:42:02,608
the aggregate data

1112
00:42:03,540 --> 00:42:04,835
of Correct. Purchasers

1113
00:42:05,767 --> 00:42:06,642
and sellers.

1114
00:42:07,453 --> 00:42:09,440
And their mutual decisions over time. I mean,

1115
00:42:09,757 --> 00:42:11,188
would that be accurate way of saying that?

1116
00:42:11,427 --> 00:42:13,334
Yeah. That's exactly what it is. This exactly

1117
00:42:13,334 --> 00:42:14,629
what it did. They... Also

1118
00:42:15,098 --> 00:42:16,850
Get the price from the Dmv... They get

1119
00:42:16,850 --> 00:42:19,239
the prices from the Dmv. They know exactly

1120
00:42:19,239 --> 00:42:21,389
what the... Those cars are so far. And

1121
00:42:21,389 --> 00:42:23,953
then did just aggregate an average. They don't

1122
00:42:23,953 --> 00:42:25,469
set that price in the blue book.

1123
00:42:26,266 --> 00:42:28,421
Okay? And if once again, if you don't

1124
00:42:28,421 --> 00:42:30,097
believe we just go do a little research

1125
00:42:30,097 --> 00:42:30,496
on this.

1126
00:42:31,387 --> 00:42:32,444
They are just

1127
00:42:33,217 --> 00:42:36,080
aggregating the prices that have already been negotiated

1128
00:42:36,080 --> 00:42:37,194
out there in the free market.

1129
00:42:38,324 --> 00:42:39,922
It's also possible that you could sell your

1130
00:42:39,922 --> 00:42:41,840
car for less or more than the Blue

1131
00:42:41,840 --> 00:42:42,239
book price.

1132
00:42:43,198 --> 00:42:45,515
So... Is exactly correct? If you are willing

1133
00:42:45,515 --> 00:42:47,365
to sell your... Your car that Blue book

1134
00:42:47,365 --> 00:42:49,438
says is worth 10000 dollars. If you're willing

1135
00:42:49,438 --> 00:42:51,112
to sell it for 2000, I'm sure there's

1136
00:42:51,112 --> 00:42:53,184
somebody willing to purchase it for that. And

1137
00:42:53,184 --> 00:42:55,770
if you're willing to sell your 10000 dollar

1138
00:42:55,827 --> 00:42:58,474
blue book value car for 14000

1139
00:42:58,610 --> 00:42:59,110
because

1140
00:42:59,962 --> 00:43:01,870
I don't know. Whatever reason you made it

1141
00:43:01,870 --> 00:43:04,110
a convenient purchase someone else that didn't have

1142
00:43:04,110 --> 00:43:05,461
to drive across the country to purchase the

1143
00:43:05,461 --> 00:43:06,891
vehicle or something and you added your own,

1144
00:43:08,162 --> 00:43:09,433
price to it and somebody was willing to

1145
00:43:09,433 --> 00:43:11,101
pay that, you can absolutely sell your car

1146
00:43:11,101 --> 00:43:12,744
for more than that. So there's no for

1147
00:43:12,944 --> 00:43:14,782
rules. It's the agreement of the buyer the

1148
00:43:14,782 --> 00:43:17,259
seller. Right? Yeah. You you suggest the price,

1149
00:43:17,898 --> 00:43:19,815
the person that buys it sets the price.

1150
00:43:20,548 --> 00:43:22,461
That they were willing to to to buy

1151
00:43:22,461 --> 00:43:23,737
for. So... Yeah.

1152
00:43:24,374 --> 00:43:25,968
So this has been a great discussion today.

1153
00:43:26,447 --> 00:43:28,200
Obviously, I think it's a it's an important

1154
00:43:28,200 --> 00:43:29,733
to... Discussion or there wouldn't be so much

1155
00:43:29,733 --> 00:43:31,811
engagement today. But I do,

1156
00:43:32,451 --> 00:43:34,789
I I would challenge people

1157
00:43:35,327 --> 00:43:38,065
to listen to both sides of the aisle

1158
00:43:38,778 --> 00:43:39,278
and

1159
00:43:39,896 --> 00:43:42,609
listen with the intent to understand not listen

1160
00:43:42,609 --> 00:43:45,083
to the intent to respond. Because I think

1161
00:43:45,083 --> 00:43:47,015
this is what happens all the time. I

1162
00:43:47,015 --> 00:43:48,875
do know that there are times

1163
00:43:49,655 --> 00:43:51,675
when people feel like

1164
00:43:52,934 --> 00:43:53,675
we cannot

1165
00:43:54,135 --> 00:43:56,141
negotiate this price. When I say, we, I

1166
00:43:56,141 --> 00:43:58,678
mean, the American citizens are the global citizens

1167
00:43:58,678 --> 00:44:01,136
for that much cannot do this. Well, yes,

1168
00:44:01,373 --> 00:44:02,934
you cannot do it on your own. When

1169
00:44:03,134 --> 00:44:05,447
and it may take a long time to

1170
00:44:05,447 --> 00:44:07,920
move the price because of government intervention,

1171
00:44:08,637 --> 00:44:10,951
but eventually it will. And I think that's

1172
00:44:10,951 --> 00:44:13,278
the frustration with people that are like, I

1173
00:44:13,278 --> 00:44:15,353
can't do anything about this because the prices

1174
00:44:15,353 --> 00:44:17,588
just stay high, and I can't buy it.

1175
00:44:18,306 --> 00:44:20,700
Well, I understand why you think then there's

1176
00:44:20,700 --> 00:44:24,695
some... Extraordinary circumstances working against you, some kind

1177
00:44:24,695 --> 00:44:26,048
of conspiracy theory,

1178
00:44:26,605 --> 00:44:28,298
but eventually those prices

1179
00:44:28,769 --> 00:44:31,726
that manufacturer will not be able to continue

1180
00:44:31,726 --> 00:44:34,603
to keep those prices high. It's... It makes

1181
00:44:34,603 --> 00:44:36,362
no economic sense for them to do that.

1182
00:44:36,761 --> 00:44:37,741
And that's what the.

1183
00:44:39,411 --> 00:44:41,642
So Bruce, I can link to Khan academy.

1184
00:44:42,200 --> 00:44:44,749
I don't know specifically which article you were

1185
00:44:44,749 --> 00:44:46,343
talking about there is 1 that's a

1186
00:44:46,901 --> 00:44:48,038
financial institutions

1187
00:44:48,908 --> 00:44:49,408
class

1188
00:44:50,025 --> 00:44:52,497
within the world history course. So I I

1189
00:44:52,497 --> 00:44:53,932
was able to find that, But, I'm just

1190
00:44:53,932 --> 00:44:56,326
gonna link to Khan academy through the notes

1191
00:44:56,326 --> 00:44:58,181
here, and you are welcome to go

1192
00:44:59,129 --> 00:45:01,195
do some research and, also, Bruce, if you

1193
00:45:01,195 --> 00:45:02,409
have a specific link

1194
00:45:03,181 --> 00:45:05,007
for the course you were mentioning. I would

1195
00:45:05,007 --> 00:45:06,993
love to So easy. I just I just

1196
00:45:06,993 --> 00:45:07,708
plug get in.

1197
00:45:08,438 --> 00:45:08,835
You know?

1198
00:45:09,471 --> 00:45:11,774
That's. On academy bank discussion,

1199
00:45:12,489 --> 00:45:13,998
and it comes up. It's not that difficult.

1200
00:45:14,554 --> 00:45:16,222
Awesome. I will link to that afterwards then.

1201
00:45:16,713 --> 00:45:19,172
So if you are interested in really pursuing

1202
00:45:19,172 --> 00:45:21,893
this idea of how to have your own

1203
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stable reserves that you are storing. And keeping

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1205
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1206
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1210
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high that's gonna lock you out of a

1211
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1212
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If you are interested in

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1222
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1223
00:45:59,222 --> 00:46:00,498
thank you for being with us today. Thank

1224
00:46:00,498 --> 00:46:01,296
you for the discussion.

1225
00:46:01,869 --> 00:46:04,418
Please continue asking your questions, all of that

1226
00:46:04,418 --> 00:46:06,192
becomes fodder and

1227
00:46:06,728 --> 00:46:08,958
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