 So the news just dropped Paul Tudor Jones buys Bitcoin. He states it reminds him of gold in the 70s This is pretty damn big news If you don't know who Paul Tudor Jones as well Google if he's one of the biggest hedge fund managers out there And he's been in this game for a very very long time Now the reason why I wanted to make this video is not to talk about Paul Tudor Jones or even talk about Bitcoin But talk about the importance of inflation versus deflation. I had Jeff Booth on About a couple of videos before we have a great podcast on White deflation is the key for future value and since the 70s Once we decouple from the gold standard and we went to the petrol dollar We've been seeing massive inflation. This dollars are garbage at the end of the day They're just a means of exchange quickly when it comes to deflation when it comes to store of value This is why Paul Tudor Jones went on on Bitcoin. His exact words was it reminded him of gold in the 70s Look what's happening with central banks today? You have the Treasury which is barring three trillion dollars plus you have the Fed balance sheet Which is now north of seven trillion dollars. This is on the balance sheet Who knows how much is off the balance sheet with their SPV deals of it done This is all central banks around the world the Fed the Canadian central bank Japanese central bank etc. Now we're talking about in Canada over here going into negative interest rates You know what negative interest rates means for you? Inflation bazooka. That's what it means inflation Bazooka you're gonna have a small period of the honeymoon effect where capital flushes into the market Then what happens is a slow decrease of deflation while things get cheaper and then what happens is Inflation massive inflation and so what most people are thought from a very early age and I'm hey man I'm one of them at the fucking beginning man You know foolish I was with my money went back in the day and fuck I made a lot of money when I was young doing you know Interesting things all gone. So basically what does this mean? What does this mean for you? This means you need to be smarter This means it's not about how much money you make is Are you protecting your downside in the downside going in the future the writings on a fucking wall is inflation everywhere? Print print print print print print. What do you think's gonna happen to your money? What do you think you think UBI is gonna help? Okay, you get you get two thousand dollars. You get two thousand you get two thousand everybody gets fucking two thousand dollars cool Every year because of inflation guess what you need to increase a five percent per year minimum fucking minimum Okay, let's fast-forward five years. What's five times five twenty five percent? Okay, and you're gonna have twenty five percent on top of the two thousand Let's keep on going another twenty five and you see it's never ending because you are decreasing the buying potential of that dollar This is why It's fiat money. It's petrol money. It's not the gold standard money anymore It's garbage and so when you have the top minds like Paul Tudor Jones coming in and saying this reminds him This reminds him of gold in the 70s. This should give you more insight like this is mainstream hedge funds We're not talking about obscured funds. We're talking about mainstream hedge funds And so let's say you are in a position right now your contractor your small business owner You're getting your whatever your salary figure out ways you can allocate a little bit of your capital into deflationary scarce objects precious metals Bitcoin depending on where you live you insert the land I'm big on farmland But you need to protect your downside at the end of that you If we had and we are heading if we do head into negative interest rates You know that you're gonna get charged to keep your money in the bank. Think about that. It's the most craziest thing ever There's no savings the money in the bank they charge you to keep your own money in the bank Monopoly buddy, it's a joke You know, I remember when people die must six figures make 100k a year. What the fuck can you I'm in Toronto? So obviously geography matters Six figures downtown Toronto You're what the fuck you can't get shit You can't live for shit for six figures downtown Toronto rent alone is 3k car this that you need base bone base base minimum for like the most basic living is 80k like base base Six figures the six-figure days are back in the fucking 70s Before we decoupled from gold, you know the Bretton Wood agreement Six figures now in major cities like New York Toronto Vancouver. Nothing. It's like it's an equivalent of like 40k And so in the future what do you need fucking 300 thousand dollars and we actually have examples of state exactly of that It's fucking San Francisco Developers are earning like three hundred thousand dollars and from the outside like oh shit three hundred fucking thousand dollars What the fuck does that get you nothing a Bachelor of Pad piece of shit property in San Francisco to rent is five G's So it's not about how much money you make it's a buying power that matters the most gold It holds his buying power Right precious metals for the most part holds is buying even silver that fluctuates It's so fucked is still better than fucking the dollar even go You know even Bitcoin the lot of people in the house has been Going at it and hating it It holds us like think about it. It's only fucking the 11 years old 11 years old Look where you are in 11 years. I remember when I entered a space It was only Bitcoin nothing else and I went to like meetups here was like I don't know like seven of us And I look at now I'm like the space where we are in just a couple of years is obscene like it's crazy It's mind-boggling for me But you guys got to protect your downside. So figure out where you are figure out Okay, it doesn't have to be a lot just a little bit just just a little bit It can be like maybe you buy a little bit Bitcoin every month like a hundred bucks Maybe you buy a little bit, you know gold gold coins just a little bit a little bit goes a long way It's the compound effect, you know, just compounding bit by bit month by month and not keeping your money in the bank at all a Guys we're in we're gonna be in for a fucking bumpy ride, you know, we have two markets right now We got the stonk market which the Fed is trying to pump as much money into the fucking down in SE S&P and you see it right now as it'll do a little bounce back, but it's most likely gonna be a W And then we have the real economy the numbers came out today north of 28 million dollar 28 million people job loss, but the stocks are jumping up Airbnb just announced 1700 people layoff Uber making a huge announcement is they don't know the numbers exactly but they're coming out next week massive massive fucking layoffs So we have greater layoffs than the Great Depression, but the stonks are popping up And then I have the Fed even talking about buying equities within the market obviously legally they can that's how they did a SPV to buy the bond market But they can do another SPV and buy the oil markets That's socialism right there Pretty fucked up if you ask me stonk markets aren't a representation of the real market We are in for a fucking bumpy ride So what you got to focus on is like, okay Inflation is gonna happen, but before inflation we get deflation Because that's what's gonna happen No one's paying the rent data data came out 40% of people of small business and medium business sizes They're not paying rent no money. Okay, this is gonna keep on rolling out people think it's bad now wait 18 months Wait till the second third fourth order effects hidden. Oh Serious shit, man. I'm telling you right now. Okay, not to scare you. I'm a realist. I'm not an optimist I'm not a pessimist. I'm a realist. I look at data. I look what's happening. There's two things You look at data you look at human psychology. You put those together to get behavioral economics, okay The data and the psychology is in the zeitgeist is out there people in a fearful mindset Nobody has income nobody's earning you think the economy's gonna just turn back on that once they say hey come back on fuck No, no, no, no, no, no, no, no not at all It's gonna be bumpy. It's gonna be difficult, but don't fret. You know what I mean? Like for every Negativity there's a positivity right and the positivity is for the short and medium term There is gonna be deflation which gives you the opportunity that if you are sitting on cash you jump on assets Whether it's farmland whether it's Bitcoin whether it's gold whether it's silver whether it's other small businesses that you can buy I think there's gonna be massive opportunities to buy small businesses that aren't really good at online marketing that aren't really good at Scaling online that have really poor managers and you're gonna get it on pennies on the fucking dollar if they claim bankruptcy and that Assets you can come in there just literally fucking take it over for free pretty much So I think there's still a massive opportunities for people out there But do not follow the herd mentality don't get sucked up into this mimetics as we're neighbors are talks about where oh, yeah I'm just gonna sit back and collect my my paycheck and everything's make no no no start making plans today As I mentioned before the smartest people right now are in R&D. They're making plans They're allocating capital and when the opportunity comes a knocking then they fucking attack like a sniper And so I want to quickly wrap this up and bring it back to Paul Tudor Jones This is a fucking big deal like a big big motherfucking deal that he announced publicly first one is newsletter They hit the Bloomberg terminal where it's like I'm buying Bitcoin reminds me of 1970s that should tell you everything Guys, it's about keeping the buying power Not losing your buying power, which is fiat currency. So I'll keep it at that. Peace out