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.