 So the Biden administration does it again and they're proposing a 30% tax on all crypto mining Welcome to America as we stumble everything and allow the other countries to catch up So we're gonna take a look at what's going on with the almighty by the administration at 30% tax Also, we'll take a quick look at the tax rate hikes from a friend of the show Drone Powell and then also We're gonna take a look at just some quick things that are going on with the banks so before we get into it, we all know that today is Drone Powell day where he's gonna come out and he's gonna say essentially that he's going to raise rates Now, I don't know why this is a mystery to anybody, but apparently this is big news so this is The CME group and it is their watch and the FOMC meeting is in roughly an hour So everybody's gonna do a live streams. Everybody's gonna talk about it I just don't see the point because he's gonna raise the rates again and it's amazing to me This is the target rate probabilities for the 30 May, which is today and we take a look at that For the for the percentage that some people think that right now we're looking at between 4.75 500 For the rates and people believe 13% of people believe that your own power will keep it at the same rate and I don't know who those people are But I'd like to meet them and talk to them and understand why they're saying that but we're looking at 86% Almost 90% of people going yes He's gonna raise rates because that's what your own power was doing he wants to hit that inflation rate between two run 2% I think see a 3% and He said very clearly that is our job higher for longer and what is interesting to me though For just these Fed rate hikes is that just a month ago on 3rd of April you had it was almost a 50-50 split You had 42% of people Thinking that it would stay at the current rate almost 50% thought that and 57% said nah, nah, nah, we think it's gonna actually go up almost a 50-50 split now With all the bank collapses and things that are going on people kind of wise up, but to me I just don't see it. So how do you play this? Well, I can't give you financial advice, but me personally I still believe once this rate hike comes out people are gonna come up and say oh My god, I can't believe you raised the rates and we're gonna have a little bit of a dip in the market Although I don't understand why people say this is priced in there may be a little bit of dip Maybe if you want to weigh a little bit around for your DCA buys you can do that again That's what I'm doing just waiting to see when the the rates come out and he officially says it But I could be wrong. So that's what we have for the rate hikes Not really Concerned about that one. What I'm concerned about is this the dam tax the dam tax from Joe Biden Joe Biden administration president here in the United States Until potentially 2024 when we have a presidential election And I think he'll be ousted, but who knows I could be wrong So this is not a political channel. I know people hate when I talk about that, but I gotta tell you The Biden administration so far has been a catastrophe for crypto digital assets and people will always say what about uh, Donald Trump That wasn't he pretty bad for crypto? Well, he wasn't great But he's not been the president for a while. So I don't know why we talk about him right now This is the administration. This is what we got. So There's a new proposal in this year's budget the dam tax digital asset mining energy excise tax or dame if you want to say it that way So the firms would face a tax equal to 30 percent of the cost of the electricity they use In crypto mining while crypto assets are virtual the energy consumption tied their computationally Intensive production is very real and imposes very real costs. Well, this is very true I think everything uses electricity. Am I wrong? I mean if we want to mine gold or if we want to put on electricity throughout the houses or if we want to run the banks Well, if we want to run long institutions, we pay for electricity. That's the free market if we want to use the electricity We use the electricity. We pay for that electricity So then it goes on and talks about of course the the same song and dance of how much electricity it actually uses And it's a high energy consumption as negative spillovers on the environment Quality of life and electricity grids where these firms locate across the country I don't want to go in this in detail. We talked about this enough on the channel But again, this is just data points Which if you're just going to bring out these data points and talk about it The narrative can force people to look at crypto in a very negative light because they go. Wow We're wasting all this energy in just this This mining operation with just a virtual good. We don't understand However, people don't understand that, you know, a lot of this electricity we're using our renewable resources That could be wind solar nuclear They're also being used for energy sources like burn off of gas, which is actually damaging to the environment Bitcoin miners are able to to capture that and use that hydroelectric power and so on and so forth And we talked about the electrical grid again here in texas Got the mining operation riot When they use excessive energy to run the bitcoin miners the electrical power grid here in texas go Look, we're having a strain because you guys shut off. We'll pay you to shut off and they do it So when we talk about these things, it's the same thing and to me, it's just it's a it's a great Example of if you just want to use one narrative piece or one data points You can manipulate a lot of people in a lot of a lot of ways and and I'll be honest with you It's the same thing here in the crypto markets. If I want to manipulate and just talk about one data point It's easy to manipulate people. I hate to say that but it's true Unless you get all the data points and all the information It just is irrelevant in my personal opinion. So that is what we have and then it goes on And the last part here is the primary goal the damn tax Damn Is to start having crypto miners pay their fair share of the costs imposed on local communities and the environment again There was a great piece put out Where they took a look at Riot blockchain and they went down there and they and they interviewed people and interviewed the Effects that it has in the community and actually it was a job creation. It's a reason why I think here in texas you got Senator Ted Cruz who was really all about it And he says this is great for the community. This is great for everything that goes along So he is a support of it. I just don't understand what the problem is but I could be a little bit off So let me just think about that in the comment section But then speaking of Hypocrisy, I just want to throw this in real quick There is a new bill bipartisan One is the democrat one's republican matt gates and alexandria corza cortez or casio cortez They introduced a bipartisan bill to ban congress members from trading and owning stocks I can't tell you that's a step in the right direction, but if you just do a google search of bills to ban congress from trading stocks It goes back over 30 years And they never ever pass them There is one the bill act Or the stock act where they pretty much just give you a slap on the wrist and even though you can make millions and millions of dollars And they'll just find you for tens of dollars But I found this very interesting. This is from benzinga The 10 best stock traders in congress in 2022 And we always make fun of Nancy Pelosi, but she is number one I thought I found this fascinating of just how good congress people are And if you think about it if we talk about insider trading if you're sitting on Oh, I don't know a committee where you can meet with the financial regulations and uh and banks And figure out what's going on in the macro environment take that information and uh and sell and buy stocks It might be pretty beneficial to you I don't know if that happens. I don't want to be sued but it seems like that's what it is And there was a report just out began the year that found that house republicans had more than a thousand fewer trades in 2022 house democrats had over a thousand So democrats were trading more republicans trading less Democrats saw an average return of negative one percent Republicans saw an average return of 0.4 percent. So sometimes it's not about all the trades you do It's just making the good trades But just so you know, they both beat the negative 18 percent return on the s&p 500 in 2022 Over the past 10 years 10 percent of fund managers outperform the s&p 500 10 percent I don't understand why people use fund managers Throw in an s&p 500 probably do better and five percent Of the total congress outperformed So 131 of the possible 535 26 beat the market which equates to 20 percent So you got 10 of fund managers can outperform the s&p 500 and 20 percent Of congress can do it. And here's the top offenders or top great traders Uh, I don't know if you know these people uh, patrick fowling republican He's up 51 percent as far as 2022. Good job. Debbie scholtz democrat 50 Susie lee david joys republican democrats So don't sit here and be all high and mighty if you're a republican or if you're a democrat They're all mixed in there Just like all models are wrong and some are useful all politicians are wrong and some are useful And then ranking outside the top 10 and also failing to beat the market was former speaker the house. Nancy pelosi Between herself and her husband pelosi at a return of negative 19.8 percent In 2022 so I think you should pretty good in 2021, but just some to take the bank just so you know So that's a little update for the hypocrisy in congress Now let's get to a little piece Of the banks now yesterday we talked about How we are ahead of the game we are ahead Of taking a look at the four-year cycles as far as 2019 year Versed 2023 year and of course in the next year in 2024 we're gonna have our bitcoin having that I think is the kickoff But you gotta understand That's gonna happen in a year So right now from here until the bitcoin having to potentially another another big Massive run up in 2025 It's gonna be pretty volatile and the things that I see that are a problem are banks This is uh, Joe consorti michael market analysts of the bitcoin layer He says all banks Are sitting on major securities losses And before some people will talk about the regional banks, but the big four u.s banks have a combined 211 billion in unrealized losses And bank of america is about 33 percent of that Regions are getting slaughtered due to their small deposit bases, but large banks have these holes too And it's very interesting because we have these banks and then you have the regional banks. This is from rezzo And as far as their prices stock prices pack west is down 30 Potentially the next one to fall under western alliance metro bank 21 home street 15 zions 10 key corp 7 percent So if these start to collapse Then the big four start to pick those up. I'm sure jayme diamond has no problems of picking up smaller banks And before you know it now we just got like Four banks that everybody's gonna be using So I don't know how this can be Not a concentration of power But it seems like things are going that way and then Just so you know Because some people would talk about well just these these four small banks are are are taking a big loss But the cio the chief investment officer of jp morgan asset management said it'd be naive to say That this is just limited to first republic. So what i'm talking about here These problems is also leading to these problems And why I think this is going to be a bigger problem is because The greatest inverse play of all time Jim kramer said the collapse of first republic bank could mark the end of the banking crisis And if jim kramer says that it's going to happen do the exact opposite. So there is that And I think I see some big problems And on top of that just to kick this off or leave this with you for some to think about Again yesterday, we talked about The bitcoin having april 2024 We saw it on may 11th in 2020 between now of may 3rd To april we're looking at a year and in that time We could see some pretty big swings And I just want to remind everybody that in april 19 2008 Before the great recession came up Federal reserve chair ben bernanke came out and said, you know what the u.s. Could face a mild recession And of course, we know what happened in 2008 2009 And took us a while to recover and guess who said that recently well friend the show gerund paul It could be a mild recession I don't think any government employee In power has ever said we're going to see a major recession Brace yourself. It's going to be awful. It's always mild So this could be but as a quick reminder recessions don't last forever Bull markets don't last forever on average A recession lasts 10 and a half months Of course the great recession was a little bit longer But what does that mean that means if we take a look at timeframes This all lines up to 2024 and 2025 It could be wrong. That's where I see things going and lastly before we get into a little chat a little q&a This is a quick reminder Me ben and guy will be going at it tomorrow NFA live that is Six specific 6 a.m. Pacific 9 a.m. Eastern time And we're going to talk about a litany of things the debt ceiling Pepe Which I think is still on the top 100 talk about regulations and our biggest losses In crypto and how we screwed up and how we're going from there and that's it So look that concludes today for the news like today's video give it a thumbs up consider subscribing This is not a set it and forget a type of play in my personal opinion So once you subscribe and we'll do these videos daily Now I don't usually do live streams This is just a special day as it were sometimes I do these on saturdays or sundays But I'm taking off for los angeles this afternoon. So I want to get things rolling get out Before that, but that's it for today. Thanks so much for stopping by if you want to stop Or stick around we're going to do a little chat and I'll answer some questions the best of my abilities We'll go from there. So thanks so much for stopping in. All right Everybody's here Hey, dana fam beardy rusty bot mad cow crypto golfer irrational Jupiter mojo rusty bot everybody's here Matthew smith is here And dr. Payne is here Yeah, dr. Payne says it right Don't be confused. It's not a democrat versus republican issue regarding crypto Steve moochin was republican didn't support crypto under trump exactly so democrat republican Hopefully we get somebody in who's a little bit more crypto friendly, but who knows Can we talk about the having of like coin coming four day a day, please? Yeah, you know, it was big on that is tom crown Check out his channel if you especially if you like trading he does a lot of that I think he's gonna have a live stream. So with that one, I hope everybody does really well with like going I own zero But there's only like 10,000 cryptos out there can't hold them all yeah, so You know going back to this one the damn tax This is a bad idea Just in general Because here's what can happen. It's very simple If you tax somebody enough Two things will happen here one The crypto miners and the crypto operations and or the bitcoin miners and And all the mining operation will say, you know what? We're done with this and we're out of here And they'll just go across to a crypto friendly environment that wants them to be there Did you know that russia is subsidizing their bitcoin miners? By paying them and also having them drastic reductions in electricity I'm not saying that we're going to move to russia What we're saying you can move to a lot of different places because it looks like america doesn't want it So there's that and the second thing that could potentially happen is this If you're going to tax bitcoin miners that makes them unprofitable The ones that can't Be around they'll say well too much of a tax so we're out of here And what will happen is the bigger industries will just take over and then we'll have one or two Bitcoin mining plants and that'll be it And that's it and then you'll just have one or two and everybody'll plug into that now Bitcoin miners can go across the globe. I understand that But as far as like here in america You'll just have you know, maybe a couple of them and then the rest will just go away. That's it But yes bitcoin miners they can plug into any bitcoin mining operation. They want to That is true And now i'm not a bitcoin miner That's a very tough business. I would not me personally. I'm not doing that What you're doing in la going to see my son who was in a little accident cracked his is uh tibia right in half so Listening but garring that's very good. Robert gauss is here What time is the f obscene meeting? Let's take a look. I think it's in roughly an hour It is in 51 minutes So don't worry. There is a a ton of people who are going to be live streaming that But I don't I mean look Look