 All right, buddy. Welcome to digital asset news. My name is Rob and today instead of talking about the news I want to talk to you about a topic that I think deserves a little bit of a review Before the narrative just gets obliterated and what I want to talk to you about is inflation I want to talk about where it comes from Where it could actually go to how it comes to be how it comes to pass and just some detrimental effects looking out into the future So for me to describe it, I think it's best to get a real expert in here and that expert would be Milton Friedman And he was a american economist and statistician who received the 1976 Nobel prize for in economic services or sciences for research on consumption analysis Monetary history and theory in the complexity of stabilization policy. So rest assured this gentleman Probably has a pretty good grasp on it now Now, unfortunately, uh, milton has passed away In 2006, however There was a great couple of videos that milton had done and this one Now really boils it down to the essence of where inflation comes from So what i'm going to do is i'm going to just have milton take it away He's going to talk to you for about uh two two and a half minutes or so And it really just gets down to the crux of exactly what inflation is which will set us up For a little bit more deeper discussion moving forward The reason we have inflation in the united states or for that matter anywhere in the world Is because these pieces of paper And the accompanying book entries or their counterparts in other nations are growing more rapidly than the quantity of goods and services produced The truth is Inflation is made in one place in one place only here in washington This is the only place where there are presses like this that turn out these pieces of paper we call money This is a place where the power resides to determine how rapidly the amount of money shall increase Before every election our representatives would like to make us think we're getting a tax break And they're able to do it While at the same time actually raising our taxes because of a bit of magic they have in their kit bag That magic is inflation. They reduce the tax rates But the taxes we have to pay go up because we are automatically shoved into higher brackets by the effect of inflation a neat trick taxation without representation What happened to all that noise? That's what would happen to inflation if we stopped letting the amount of money grow so rapidly This is not a new idea. It's not a new cure. It's not a new problem. It's happened over and over again in history Sometimes inflation has been cured this way on purpose. Sometimes it's happened by accident during the civil war The north late in the civil war We overran the place in the south where the printing presses were setting up where the pieces of paper were being turned out Prior to that point the south had had a very rapid inflation If my memory serves me right something like four percent a month It took the confederacy something over two weeks to find a new place Where they could set up their printing presses and start them going again during that two week period inflation came to a halt After the two week period when the presses started running again Inflation started up again. It's that clear That's straightforward So yeah, I can't make any more clear than that. It's that clear It's that straightforward, but the narrative has changed quite a bit We've had it say that while the reason for inflation Is because of this once in a generation pandemic We've also heard stories about that the reason for inflation is because of the war between russia and ukraine But as we just saw it didn't seem like the the war has really slowed us down as far as a civil war Now we really take a look at and we just take a look at the m1 money supply. First of all, what is the m1 money supply? It is beginning may 2020 and one consists of currency outside the us treasury federal reserve banks and the vaults of depository institutions Demand deposits at commercial banks and other liquid deposits consisting of ocds and saving deposits including money market deposit accounts You can just see that In 2020 we did a heck of a lot of printing as far as money goes and we take a look at the m2 Which is of course consist of m1 plus small denomination time deposits Time deposit amount of less than 100,000 less ira and two balances and retail mms less ira and balances at mms We're going to see that still we have a quite an increase in the monetary supply Moving forward. So again, if we just look back to what melton freeman was talking about We can clearly see that the real reason is just because of money printing and that's about it And the next thing that I will say is that there is a problem with all this money printing Especially towards the top and this is where we get aced out Of a lot of the benefits and what i'm talking about is the the cantaloupe effect If you don't know cantaloupe effect If we take a look at it It's a change in relative prices resulting from a change in money supply Which we just talked about it is the uneven expansion of the amount of money and that's the base of it But there was also another theory by cantalon. He had a theory in which the beneficiaries Of the state creating the currency is based on the institutional setup of that state Meaning he who has close who he was close to the king and the wealthy likely benefited from the distributed choices of currency through the system It's clear that the case of the u.s capital markets many of the major u.s banks large private equity houses in wall street fair Far better after the central bank qe or quantitative easing or printing money measures While individual u.s savers often witness jumps in inflation in various goods and services and to make this crystal clear This is the best i can do Which is the cantaloupe effect is here in plain sight in a nice little graphic where the money printer goes bur The the fed gives out or the treasury gives out a ton of money to big banks and other bank banks and People across that way that are at the very top of the food chain and what do they do? They go out and they spend that new money Of course that doesn't come down to us and of course later a year or two later Then then we hear about inflation think about it is like is like a house If houses were on average 200,000 and then of course all the big banks got just a ton of money or a bunch of uh Different institutions got a ton of money to spend on well They'd probably buy up a lot of those houses which would cause the price of those houses to then go up And then of course that would ace out the retail investor or just the average joe and jane like you and me And the problem then is is that we get priced out of the market until everything crashes down Of course once that happened, uh, these guys would just be back at it again. So If that isn't clear enough, I will just say like this Uh, the ten richest men doubled their fortunes in the pandemic Of course we're talking about coronavirus all the income of 99 percent of humanity fell If these 10 men were to lose 99.99 of their wealth tomorrow It would still be richer than 99 percent of all the people on this planet And now of six times more wealth than the poorest 3.1 billion people and i'm not here to Talk negatively about the free markets I'm just saying that uh, there's quite a lot of benefits for people on the higher end of the food chain And that would be the cantileum effect and we can see this of course very clearly in inflation as it goes up This is uh app dot true flation dot com. There'll be a link below and you can find it This just takes uh 30 different data points uses chain link to pull in real-time data And this is what we have for the united states We had uh quite a bit even though we thought it was 8.5 percent That's what the government reported but in actuality we can see it's actually almost 12 percent on march And we've come down as drone powell and the federal reserve had made the uh the base increases However, that's just the usa if you take a look at the uk not so well and there is uh some other type of Of rumblings they might be going up to 14 15 18 percent So knowing all these things we just talked about with milton freeman the m1 money supply the cantileum effect I just need you to just to think about Assets And one of the assets that I invest into one not not solely is bitcoin and to make this crystal clear If you had 20 dollars in 1980 you could buy a hecka heck of a lot of groceries and it worked out pretty well But in near 2000 not as much and 2022 the 20 bucks that you may have paid for a whole basket Doesn't really get you too much trust me. I know I've been in the supermarket. I'm not getting too much of 20 dollars However, think about bitcoin In bitcoin in 2011, you know, which one bitcoin costs in 2011 20 bucks roughly And that could have got you the same amount of groceries You know what how much one bitcoin in 2021 could have gotten you a car a decent car Not just a junk car, but uh, actually a pretty nice one and who knows what will be in 2030 But there is one thing that is for sure and there is a quite a bit of price appreciation as opposed to the us dollar So uh, that is it for today. I just want to make that that quick video just talk about You know, what inflation is where it comes from and kind of set the narrative straight So there's not any kind of tomfoolery or people going no, no, no, it's this or it says that There's one place that happens in a certain area. That's Washington politicians. Anyhow, if I today's video give it a thumbs up I would really appreciate that and also consider subscribing But that is it for today's video. So thanks so much for stopping by. I do appreciate it. See you on the next one