QUESTIONS: “Why is it so hard to get ahead? Why does the government controlling the money supply massively increase income inequality? How does bitcoin fix that?

00:00 All
00:02 right, let’s talk about why is it so
00:04 hard in the modern world for the average
00:06 person to get ahead? Why does government
00:09 money printing and controlling of the
00:11 money supply massively or what I
00:14 consider it the number one cause for
00:15 wealth inequality in the world? And how
00:18 does Bitcoin fix that? All right. So,
00:20 the reason it’s so hard to get ahead, of
00:21 course, there’s a bunch of reasons, but
00:23 one of the primary ones is that everyone
00:25 in the world that uses government money,
00:28 which is everyone who’s not living on a
00:30 Bitcoin standard, you know, using or and
00:33 saving their wealth in Bitcoin, is
00:35 standing on a conveyor belt that is
00:37 going backward. So, you are trying to
00:39 get ahead. While you are trying to get
00:41 ahead, the government is printing more
00:44 money. That is decreasing the value of
00:46 your labor, decreasing the value of your
00:48 work, decreasing the value of your bank
00:50 account, and decreasing the value of
00:52 anything that is priced in uh US dollars
00:56 like wages and bank accounts and that
00:59 sort of things, checking accounts,
01:00 savings accounts. The value of all of
01:02 those things is going down as the
01:05 government prints more money and dumps
01:07 it slowly, sometimes quickly, but always
01:09 slowly into the economy. As a result of
01:12 that, you’re always moving
01:15 backwards at least 4% to 9% per year.
01:19 Now, it used to be 2%. The government
01:21 used to say, you know, scouts honor, we
01:23 promise, you know, 2% that’s as far as,
01:25 you know, we’re we’re only going to take
01:27 away your purchasing power by 2% per
01:29 year. Now they’ve given up on that and
01:31 said, “Hey, 3%’s not so bad.” But when
01:33 you really accurately, you know,
01:35 accurately calculate it all, it’s more
01:37 like 4% to 9%. And then at times of sort
01:40 of runaway inflation, it gets into the
01:42 double digits. That’s in the United
01:43 States. Other countries are almost
01:45 categorically worse and some are far
01:47 worse. um in a handful of countries
01:49 around the world your purchasing power
01:51 of your money drops in half uh every
01:54 single year which basically means you
01:56 are on a um you know you’re on a reverse
01:59 you know a walking sideway going
02:01 backwards at running speed. So if you’re
02:04 in a country with hyperinflation you are
02:06 on a moving sidewalk it is in reverse it
02:09 is in high-speed reverse mode and you
02:12 are trying to run forward.
02:13 regardless of whether you’re in the
02:15 United States and you’re trying to move
02:16 forward and the government’s trying to
02:19 move move you backward between 4% and 9%
02:22 uh per year and you’re having to
02:24 overcome that. So you have to keep
02:26 running faster just to stay in the same
02:28 spot. So if inflation is you know let’s
02:31 pick a number. If inflation is
02:34 7%. That means, you know, 17th of
02:38 whatever you’ve saved up disappears
02:40 every year, which means you’re you’re
02:42 having to move you basically 17th of
02:45 your forward motion is eaten up by the
02:49 government. And then on top of that, you
02:50 got to work really hard to to get uh to
02:53 get ahead of that. So if you have, let’s
02:55 say, I’m going to use round numbers
02:57 here. If you have $100,000 in the bank
02:59 and you’re trying to save up $7,000 per
03:02 year, you should be getting ahead. The
03:05 government’s got you on a moving
03:06 sidewalk goingwards a 7% a year that
03:09 every year new $7,000 you save. All it
03:14 really does is make up for the the
03:17 reverse moving sidewalk you’re standing
03:19 on resulting in you not moving forward.
03:21 You’re just not movingwards. So, how
03:24 does this increase income inequality?
03:26 Well, in the world is largely divided
03:28 into two groups. People with assets and
03:30 people without assets. Assets are things
03:33 like real estate, stocks, bonds, you
03:36 know, any sort of financial instruments,
03:38 investments, anything like that is an
03:40 asset. Most of the world does not have
03:43 assets. Most of the world lives on a
03:44 paycheck. Their savings are in a bank
03:47 account or, you know, stuffed under
03:49 their mattress or something like that.
03:51 and they don’t have stocks or bonds or a
03:54 401k or an IRA and most of the world
03:58 just doesn’t have those things or if
03:59 they do it they don’t have them in a
04:02 significant you know in a significant
04:04 way. It’s not a large part of you know
04:07 maybe maybe they have savings but all of
04:09 their savings are you know 10% of their
04:11 annual income and that’s it you know so
04:14 I if if you divide the world into people
04:17 with assets and people without assets
04:19 when the government prints money what it
04:22 does is it decreases the value of
04:24 anybody who already owns money and a
04:27 portion of that newly printed money goes
04:30 into the assets that people already own.
04:32 Which means if the government doubles
04:34 the money supply, let’s just say all of
04:36 a sudden the government doubles the
04:37 amount of money in circulation, which
04:39 is, you know, largely what the
04:42 government’s done. Yeah, it’s like
04:43 quadrupled it since, you know, the 2008
04:45 recession, but it’s, let’s call it
04:47 double since, you know, I don’t know,
04:49 2018. I don’t know what the numbers are,
04:51 something like that. Um, most of that
04:54 doubling of the money ultimately ends
04:56 up, not all, because it hurts everybody.
04:59 When the government prints money, it
05:00 hurts everybody. It hurts rich people.
05:02 It hurts poor people. It hurts
05:03 everybody. But it hurts poor people. It
05:06 hurts the people without assets much
05:08 more than it hurts the people with
05:10 assets. So let’s call it somewhere
05:12 between 50 to 80% of the new money ends
05:15 up chasing, you know, real estate,
05:18 stocks, bonds, investments, all those
05:20 things that drive the prices of those
05:22 things up. Which means those things are
05:25 now harder to get for the people that
05:28 are in that are trying
05:31 So the people without assets are
05:33 watching the ability to buy assets at
05:36 all disappear into the future as houses
05:39 and the stock market and all of these
05:41 things become more and more expensive.
05:43 Uh and they watch the value of their
05:46 their labor and their wages go down. So
05:48 they might have got a 2% raise, but in a
05:50 2% if you get a 2% raise when inflation
05:53 is 5% when the government prints 5% more
05:57 money then you’re moving backwards 3%.
05:59 So when new money comes into the
06:01 economy, which is what the government
06:02 does when it prints money out of thin
06:03 air, some of that money chases assets,
06:06 which drives up those asset prices,
06:08 benefiting the people who already have
06:10 those assets. But all of that money
06:12 takes away purchasing power from the
06:15 people who don’t have assets. So the
06:17 number one cause of wealth inequality in
06:20 the world is the fact that government
06:22 controls the money supply. Government
06:24 prints money. The people who have assets
06:26 see the value of those assets go The
06:29 people without assets see the value of
06:31 their wages go down because the the
06:34 people without assets are living
06:35 entirely on wages which go down uh in
06:39 purchasing power when the government
06:40 prints money and the people who have
06:42 assets see the value of their assets go
06:45 comparatively. Now again they don’t go
06:47 up as much as the money printing. So
06:49 when the government doubles the money
06:50 supply maybe asset prices go up 50% or
06:53 80%. You’re still worse off because they
06:56 didn’t go up 100%. But you’re a heck of
06:58 a lot better off than anyone who did not
06:60 have assets to start with. So government
07:03 control of the money supply and
07:04 government printing money out of thin
07:06 air is the number one driver of wealth
07:08 inequality in the world. There are other
07:10 drivers. Obviously some of it is by
07:13 differences in education or I should say
07:16 access to quality education. Some of it
07:18 is caused you know different
07:20 upbringings. Some of it is caused by
07:22 different access to healthcare. But the
07:24 number one driver is caused by the fact
07:27 that the government is printing money
07:28 and putting poor pe people who depend on
07:31 the US dollar and depend on wages and
07:34 salaries basically working people. It
07:37 puts them on a reverse walking sidewalk.
07:40 They’re always trying to get ahead but
07:43 always being pulled backwards.
07:45 Meanwhile, the people who have assets,
07:47 that newly printed money is artificially
07:50 inflating to some degree the value of
07:52 those assets, which are pushing the
07:53 people with
07:54 assets while pushing the people without
07:57 assets down. Obviously, wealth
07:59 inequality is largely a function of if
08:03 you got assets, you have attached
08:05 yourself to a helium balloon slowly
08:07 tugging you up. If you don’t have
08:09 assets, the government has basically
08:11 attached you uh you know a uh millstone
08:14 around your neck. That is always pulling
08:16 you down. It doesn’t mean you can’t swim
08:18 against it. It just means every little
08:20 bit you try to swim is being offset by
08:24 the fact that you’re being pulled down
08:26 by the fact that the government’s
08:27 constantly putting you on a reverse
08:30 treadmill. So, how does Bitcoin fix
08:32 this? While Bitcoin is the first
08:34 monetary system in the world, the first
08:36 money in the in the world, and the first
08:37 monetary system in the world, that is a
08:39 fixed supply. It is not controlled by a
08:42 government. It’s not controlled by a
08:43 company. It’s not controlled by by
08:44 anyone or anything. Um, it’s just it’s
08:48 controlled by the Bitcoin network, which
08:49 is controlled by everybody who uses
08:51 Bitcoin. And everybody who uses Bitcoin
08:53 has a veto over changing the total
08:56 amount of Bitcoin that will ever exist,
08:57 which is 21 million. So when you get
09:00 paid and you immediately turn those US
09:02 dollars into Bitcoin, you have insulated
09:05 yourself against the government money
09:07 printing, you have guaranteed that you
09:09 are not on a sidewalk, a moving sidewalk
09:12 going backwards, it’s not as a result of
09:14 the money or I should say the government
09:16 money printing. That doesn’t mean that
09:18 Bitcoin is not volatile. You’re going
09:20 backwards and forwards, you know, at
09:22 various points because we’re so early in
09:24 the Bitcoin adoption cycle. But in
09:26 general, the Bitcoin moving sidewalk is
09:28 going forward. The directional flow of
09:31 the Bitcoin moving sidewalk is forward.
09:34 It goes back and forth and back and
09:35 forth some on its way forward. Uh what I
09:38 like to say is it goes up and down on
09:40 its way up. Now, I said the word up
09:42 twice and the word down once. Bitcoin
09:44 goes up and down on its way up. So
09:48 that’s two ups, one down. Two steps
09:50 forward, one step back, two steps
09:51 forward. So it’s volatile. It goes up
09:53 and down but directionally it is always
09:56 eventually going forward. The US dollar
09:59 never goes up in purchasing power.
10:01 Inflation has never in the modern era
10:05 ever been negative. Meaning you never
10:08 woke up and you could buy more with your
10:10 money tomorrow than you could buy with
10:12 your buy today. Directionally the US
10:15 dollar is always going backwards. It is
10:17 always losing purchasing power. It is
10:19 you are always in
10:21 reverse. So the biggest thing we could
10:24 do to solve income inequality is move
10:26 the world from a fiat currency. Fiat
10:29 means made up. It means created out of
10:31 thin air by fiat. Fiat means by command,
10:35 by dictate. Basically the government
10:37 just makes up money. As the world moves,
10:40 which has already started, we’re still
10:42 very early in that process. But as the
10:44 world moves from fiat currency,
10:46 governmentmade money such as the US
10:48 dollar and the euro and the yen and the
10:50 Juan and the you know etc etc. As the
10:54 government moves from that money to
10:56 money that nobody can make out of thin
10:58 air which is bitcoin the uh the
11:01 difference the disparity between those
11:03 who have assets and those who don’t will
11:05 shrink. So income inequality will start
11:07 to reverse as everybody gets to use
11:10 money that is not working against them.
11:13 So Bitcoin is a money that is working
11:15 for you. It is volatile. It goes up and
11:17 down on its way up. But it is the
11:20 directionality is it is working for you
11:23 in the long term. The US dollar is only
11:25 ever working against you and you’re
11:29 constantly having to fight against its
11:31 loss of purchasing power every single
11:33 day. So how do I summarize this? Why is
11:35 it so hard to get ahead? Because
11:37 governments have put you on a moving
11:39 sidewalk going backwards. That is why
11:41 it’s so hard to get ahead. It’s the only
11:43 reason it’s hard to get ahead. The
11:45 primary reason it’s hard to get ahead is
11:47 that the government has put you on a
11:49 moving sidewalk. Moving
11:52 backwards is a tough position to be in.
11:54 And that is where we all find ourselves.
11:56 So that is the number one
11:59 reason. Uh it has paused. Hold on. Give
12:01 me one second here.
12:06 the uh
12:10 so the uh I’m watching Tesla navigate a
12:14 very complex intersection there. It did
12:17 it did it admirably. I appreciated its
12:19 uh its actions there. Anyway, so um so
12:23 it’s why it’s so hard to get ahead is
12:25 governments have put us all on a awards
12:27 moving
12:28 sidewalk.
12:30 Government money printing increases
12:32 wealth inequality by watering down the
12:36 money of the people who don’t have
12:38 assets and watering the people who do
12:40 have assets. Even though everybody
12:42 loses, the people who have assets lose
12:45 less than the people who don’t.
12:47 Therefore, everybody’s worse off by
12:48 government money printing because
12:49 everybody’s having their purchasing
12:51 power watered down. But some of that
12:54 watering down sort of waters into
12:56 assets. the watering down effect of the
12:58 people who do not have assets go down
13:00 and it never goes up. It’s just always
13:02 down. And then what do we what do we do
13:04 to fix that? We move to Bitcoin. We save
13:06 our savings in Bitcoin. We save and in a
13:10 currency that the government cannot make
13:12 more of that nobody can print more of.
13:14 There’s only 21 million. When you own
13:16 Bitcoin, you know that nobody is making
13:19 your savings less valuable. And if you
13:22 hold on to it long enough directionally
13:24 as Bitcoin goes up and down on its way
13:27 up, it will be up. And it’ll be up in a
13:29 manner that far outruns the government
13:32 money printing that is trying to hold
13:34 you back and hold you down and water
13:36 down your life savings and water down
13:37 your work and water down your efforts.
13:39 Bitcoin is the antidote to inflation and
13:43 uh Bitcoin fixes all of that. So a great
13:45 time to buy Bitcoin and my my advice has
13:48 never changed. Buy as much Bitcoin as
13:49 you can. Hold on to it for as long as
13:51 conceivably possible and live a life
13:54 that is much easier without the
13:56 government taking away your purchasing
13:58 power. Have a great day, everyone.