The government is paying people 4.5% to not invest in anything, and bitcoin is at $107,000 per coin!

00:03 The government is paying people 4.5% or more interest just to not
00:07 use their money to not invest it to keep
00:09 it on the sidelines to park it park it
00:11 with the government. Oh, there’s last
00:14 time I checked, which was a couple
00:15 months ago, there was $7 trillion 7
00:18 trillion. That’s a ridiculous amount of
00:20 money uh sitting in money market funds.
00:22 That means people have given their money
00:24 to the bank. The m the bank has turned
00:26 around and given that money to the
00:28 Federal Reserve in exchange for 4.5%
00:31 interest. And they do that with, you
00:33 know, key bills and short-term this,
00:35 short-term that. But ultimately accounts
00:37 for people doing that. Now, it is
00:40 amazing. Bitcoin is sitting at $108,000
00:43 per coin while the government is trying
00:46 to keep all the money sidelined, which
00:48 means all of the money that has flown
00:50 into Bitcoin that has pushed it up to
00:53 $18,000
00:55 per coin. All of that money is competing
00:58 with the government promising 4.5%
01:01 interest for you to do nothing. And of
01:04 course, in government terms, it’s zero
01:06 risk. Obviously, I don’t think it’s zero
01:07 risk because there’s massive inflation
01:09 risk and even some default risk. But one
01:12 second.
01:14 Anyway, Bitcoin’s competing with 4.5%
01:17 interest rates. Now, when Bitcoin went
01:20 on a bull run, which means an optimistic
01:22 run, which means an upswing in 2021,
01:25 Bitcoin was competing with zero%
01:27 interest rates, which basically means
01:30 the government was paying you zero to
01:32 keep your money on the sidelines. and
01:35 Bitcoin ran up to $69,000
01:38 back in 2021. So, a lot of people have
01:42 made the dumb decision to sit on the
01:44 sidelines thinking Bitcoin was not going
01:45 to perform well in a highinterest
01:48 environment. Well, Bitcoin’s performed
01:50 phenomenally well in a high interest
01:53 rate environment, which is the most
01:56 hostile environment for Bitcoin to
01:58 perform in because again, Bitcoin is uh
02:00 is competing with high interest rates
02:03 that you can get for doing nothing. You
02:05 don’t have to take any risk according to
02:07 the government. You don’t have to take
02:09 any risk to get 4.5%. Which means you
02:12 only need to invest in Bitcoin or some
02:14 other asset if you want more than 4.5%.
02:16 One second.
02:19 Okay, so here’s what’s about to happen.
02:21 I don’t know if this happens tomorrow or
02:23 a week from now. Here’s what’s about to
02:24 happen. What’s about to happen is the
02:26 government’s going to lower interest
02:27 rates. You’ve got like $7 trillion
02:31 sitting on the sidelines of people
02:33 making 4.5% interest and the
02:35 government’s going to come in and it’s
02:36 going to lower interest rates. Meaning
02:38 it’s going to say, “Hey, just kidding.
02:41 You can’t get 4 and a.5%. You can’t even
02:43 get three and a half%. Not even 2 and
02:45 1.5%. Maybe you get 1%, maybe 2%, maybe
02:48 a half a percent. But the government is
02:50 going to radically lower interest rates
02:52 at some point in the future. Maybe it’s
02:54 the very near future in the coming
02:56 weeks, maybe it’s in, you know, months.
02:59 But the government is going to lower
03:00 interest rates because the government
03:02 has to lower interest rates. The
03:04 government cannot afford $37 trillion of
03:07 debt when the interest rates are 4.5%.
03:11 That’s just it creates trillions of
03:12 dollars of interest every year or more
03:14 than a trillion dollars of interest
03:16 every year and it’s completely
03:17 unaffordable. Additionally, because of
03:20 decades of low interest rates on and
03:22 off, companies and individuals have
03:25 taken on vast amounts of debt themselves
03:27 personally. As a result of that, they
03:30 cannot afford 4.5% interest rates.
03:33 People who own a home cannot afford to
03:36 refinance at 7 8 n% interest which is
03:40 the mortgage interest rates. The
03:41 mortgage interest rates are always
03:42 higher um than the government interest
03:45 rate and same with uh car loans like you
03:48 know the government interest rates you
03:49 know four and a half% to car loans maybe
03:51 6 and a half or 7% or something like
03:53 that. People cannot afford that because
03:55 the world is drowning in debt. So the
03:58 government absolutely positively will
03:60 lower interest rates because they have
04:02 to lower interest rates. The economy of
04:05 the United States cannot function with
04:07 high interest rates because it’s
04:08 drowning in debt. And it got that way by
04:11 keeping interest rates too low for too
04:13 long. And once you do that, you
04:15 basically are stuck doing it in
04:17 perpetuity into the future because
04:19 otherwise all of that debt that’s been
04:21 accumulated is unaffordable. meaning it
04:24 you get forced uh cascade of defaults
04:27 which one thing defaults and then the
04:28 next thing defaults and then the people
04:30 who are counting on that money can’t
04:31 afford their next thing so that thing
04:33 defaults and all of that so interest
04:35 rates are going to come down and as
04:36 interest rates are going to come down
04:38 that 7 trillion sitting in money market
04:40 funds is going to suddenly wake up and
04:42 all those people are going to say huh I
04:44 used to get 4.5% for doing nothing now I
04:47 got to do something and so that money is
04:49 going to go hunting for a new home so a
04:53 big chunk chunk of it’s going to end up
04:54 in the stock market. A big chunk of it’s
04:55 going to end up in real estate. Uh a big
04:58 chunk of it’s going to end up in
04:59 Bitcoin. And Bitcoin is the smallest of
05:01 those asset classes. Meaning, you know,
05:03 real estate’s a very large asset class.
05:06 Bonds, stocks, those are all 100
05:08 trillion dollar plus asset classes. So,
05:11 if a trillion dollars flows into real
05:12 estate or bonds or stocks, it really
05:14 doesn’t make that much difference
05:15 because those are cleared. You know,
05:17 those are huge asset classes. If a
05:18 trillion dollars flows into Bitcoin, the
05:21 price radically increases. It has to
05:23 because Bitcoin is still only $2
05:25 trillion and it’s very early in its
05:27 adoption cycle. So my prediction is
05:30 what’s going to happen in the near
05:31 future. I I don’t know what near means.
05:33 Maybe near as weeks, maybe near as
05:35 months, is that that $7 trillion is
05:38 going to go looking for a home where it
05:40 can make an interest rate that is higher
05:43 than 1 or 2%. Which is what uh is being
05:47 promised by the powers that be in
05:49 Washington right now is that interest
05:50 rates are going to be low again. And low
05:53 interest rates means there’s not a
05:55 strong incentive to park your money on
05:56 the sidelines and just let the
05:58 government sit on it and give you
05:59 interest uh at your bank through money
06:02 market funds or certificates of deposit.
06:04 All of those feed off of the government
06:06 interest rate. And when the government
06:07 changes their interest rate, it changes
06:10 all of those interest rates. So bunch of
06:12 money is going to come flooding back
06:13 into the economy and a bunch of it’s
06:15 going to end up in Bitcoin. And my
06:16 prediction is Bitcoin goes way, way up
06:19 from here. It’s just a matter of whether
06:20 it’s days, weeks, or months. I don’t
06:22 know. But, um, it feels like that’s
06:25 about to happen. It feels like it’s
06:27 amazing that Bitcoin is sitting at
06:28 $108,000
06:30 when it’s competing with the US dollar,
06:33 4.5% interest, even though that’s
06:35 completely not sustainable. Um, and it
06:38 feels like as soon as that interest rate
06:39 goes down, Bitcoin is going to go way,
06:41 way up. Uh, it just feels inevitable
06:43 that that’s going to happen again. We
06:45 got to $69,000 per coin in 2021
06:48 temporarily on almost zero interest
06:50 rates when the money was hunting for
06:52 somewhere to go and then interest rates
06:54 got jacked up to try to, you know, deal
06:57 with inflation. And then, you know, the
06:59 price of Bitcoin came down and now it’s,
07:00 you know, back up again. But it’s back
07:02 up when interest rates are high. So,
07:04 Bitcoin is sitting at 108,000 in an e,
07:07 you know, in a fiscal environment that’s
07:09 not hospitable. meaning in a high
07:11 interest rate environment where it’s
07:13 competing with high interest rates from
07:15 other assets. And uh I just think it’s
07:17 going to go way way up as soon as
07:18 Bitcoin’s not competing with high
07:20 interest rates. And uh you know people
07:22 are looking for a place to put their
07:23 money and Bitcoin’s by far the best
07:25 place to do that. So uh exciting times
07:27 are ahead. You know that next big
07:29 upswing could start in hours, days,
07:32 weeks. I don’t know. It just feels like
07:33 it’s close. So have a great day
07:35 everyone. Thanks.