 Welcome to the last of the news or Dan for short. My name is Rob. And today is the the thumbnail and title suggests CPI Numbers came in hot Inflation is up a little bit more over expectations and the real question is is this working what the Fed is doing? So we'll take a look at those numbers, which I'm sure you know, but it's just a Different set of opinions also. We'll talk about the expected Fed hikes Of course and I want to warn you about watch out for December oil and midterms And then lastly we're gonna take a look at the big picture And this is a former office officer the control of the currency Brian Brooks as he sat down with CNBC And he gave some pretty compelling information as to where crypto is going as far as with legislation As far as adoption for institutions and really what it means right now to be in this market So first things first let's take a look at those CPI numbers. I think we all know by now Not doing so hot. Excuse me. It is hot. It's very hot. It's up 0.4% this is a 0.2. I think over what what the expectations were and remember We've been seeing these Fed hikes for quite some time and the Fed hikes are supposed to tamper down Demand which will hopefully tamper down inflation and without these Fed hikes. I can't imagine what? Inflation would be and this is just over just a very short amount of time take a look at the at the one year In the five year, you can see that we're we're up there We're going pretty high, but it wasn't anything unusual as far as like 2018 19 to 2.25 They look at a 10 year still we're above what we were at 2016 1413 you take a look at 25 years. Okay now we're talking and During that 2008 2009 financial crisis. I mean we talked about this yesterday We were almost at six, but we take a look at max. This is nowhere near In the 1970s and 80s you're talking about inflation rates or Fed rate hikes of almost 17 18 19 percent so I don't think we're going to go that high But just to show you how far away we're actually we're from the high and then the big thing to remember I think everybody's talking about this is core CPI core CPI takes out food and energy And of course right there that's that's six point six percent again higher than what's expectations were But the big thing I always think about was well, this will probably crush the market for a bit Nope If we take a look at the market itself everything's I mean bitcoin's up 0.2 percent, which is pretty resilient and it's been resilient last month too Uh, and of course tethering us deco and I'm really cares, but there's a little bit of uh of a red Red area around certain projects not so much others just depends on which ones might be the winners So bitcoin I think is doing pretty well 0.3 for well, it's USD coin and the question I had then was well, what's the market's gonna do? Looks like it doesn't matter. Maybe today it is all priced in I just don't know if the markets are getting the message like We could go 75 basis points or we could go a full 100 basis points I know it's out of uh out of left field, but I wonder how the market responded that but today It's like yeah hot numbers are hot. We knew it was coming not a big deal We'll just keep going. I just think there's a little more pain But that's not what the market's saying the market's like we want to rally here's nasdaq And uh, we think everything's gonna be just fine and this is just a temporary thing and it very well could be again We've got a way to go and expect The fed hikes of course, I personally think it's gonna be 75 basis points have always said this but I can't rule out 100 and uh, I know that's very far out But who knows we got November 1st and 2nd with the fed meeting That's when they're gonna do the the hike, but wouldn't it be crazy if they come out and said, you know what? We can tell things are working because it's gonna take some time to work its way through the economy itself, right? It's not like It's not like Getting in shape like you do, you know a couple of push-ups and all of a sudden you lose 10 pounds It doesn't work like that. It takes a little bit of time. It's the same thing with uh, Raising those raising those rates. I think it's gonna take time 8 12 14 16 months To really see the effects and I think at that point maybe it'll just be a little bit too late So expect a lot of volatility moving forward. So I think 75 basis points could be it and of course The other part of out of this is the December meeting and 13th and 14 because right now The feds looking at the core cpi numbers, right? Which has taken out food and energy And the reason why energy and gas and things have been down is because well We've had a little bit of a increase in production. We've also been getting into our reserves here in the u.s. However This was a story. I You know, I think it's gonna be much of a thing except for politics, but it's gonna play into a part the Saudis Say the u.s. Are opec really so u.s. Sawed a one month delay of opec plus production cuts because they Are supposed to ramp things up and like now we're not going to do that We're going to decrease the amount of oil that's produced. They're by raising the demand They're by raising the cost and what'll that do? Well Of course, the government doesn't want that to happen Because guess what happens in the first week of november. That's right midterms So they said please just delay the cuts for a month and so we can get through midterms. We can keep the house or keep the senate That's not gonna happen So holding off on cuts would mean implementing them just before the November 8 election Post voting opec plus two million barrel cut announced last week and they're like, no, we're not going to stop that We're going to cut down So see how that will play it apart not in a core cpi, but just the cpi numbers in general and again I think this could play out Very differently than what people think it's going to so let me just think about that in the comments section and we already know these things but There was a great interview and uh, I love these interviews from people like brian brooks here and uh, brian brooks That's a funny picture is the former officer of the control of the currency He was there from uh, may 29 2020 And then he lasted I think until the next year or so And um, he was an advocate for crypto and when you're in that position It's not like you can say a lot of different things. You can't literally just come on and go, you know These democrats or these republicans of this this and that but now that he's out of office and I he's at fitberry I believe fitberry fit. Yeah fit fury fury bit whatever CEO Uh for a crypto company now he can kind of say the things that are really on his mind What he really thinks so what I did is this is a longer interview I broke it up into six different pieces and I pre-recorded it because to jump back and forth It's going to take too much time. So listen to these six parts and uh, we'll jump back in a second But there's a lot of great things just take a listen I broke this down into six pieces. This is a fairly long interview from cnbc And brian was asked six different questions and before we start I just want to make mention that uh, this is probably Subpar audio. I don't know why cnbc recorded this interview while there was a live conference going on But the information that brian talks about is golden So the first thing the first question is this is what's the chance of regulation six or 12 months? Second one, what is congress's issue? Why aren't they moving? Is that consumer protection or something else? Also, what were the lessons learned from 3ac sell season voyager? Which they're going to take to put into two new regulations How are the macro events influencing the market and how is this good for bitcoin? Last second the last is when will bitcoin rally and decouple? And this is pretty much a great answer from him and the last one which I think is the most important What's the missing piece for mass institution and adoption? I gotta tell you he knocked it out of the park with his last one about where things are going So let's just go over the first one. We'll jump in okay What I would say is it depends a lot on the midterm outcomes So if you assume that the republicans take wonder both chambers Then I actually think the chance of bipartisan legislation is pretty high And that is because I think crypto adoptions fairly high democrats realize that and republicans are really leaning in On the other hand if the democrats hold both houses of congress The leadership of the democrats has been quite hostile to crypto assets from the administration and in both houses of congress So I think it requires at least one house to change hands for their momentum Interesting and on the democrat side it feels like there has been a little bit of a shift in the tone At least from last year there's been a lot of talking about consumer protection But it does seem like they've embraced the industry a little bit more could that be the result of Lobbying dollars and some of the time that the companies have spent here in dc. Yeah, I I have to say I think that's happy talk I know the industry says that but I don't think it's true You know there's talk from sort of democratic back ventures and next gen leaders But the leadership of the party both in the white house and at the regulatory agencies let alone on the senate banking It is uniformly negative. So I just don't see that happening It's terrific that there's a group of young church dems who are on our side But that's not where the leaders are on that side So, yeah, they're just not very happy with what's going on and really just comes down to Leadership and even though there's like he said a lot of young people who want it There's a lot of people who are up in power like nope We don't want that the next one. It kind of builds on the last answers What's their issue consumer protection or something else? Just take a listen I don't think it was ever consumer protection kate what I really what I really think it's about is it's about Who controls the financial system and the crypto movement is all about a user controlled financial system And that just isn't what the older generation of democratic leaders believe in They believe in a more government focused system that can be more easily surveilled more easily controlled That can direct people, you know towards the things that you know, the leadership believes is good for them Whereas the younger generation is much more about using technology to unlock values for all americans But that's just not with the leaders from the 60s seem to believe Yeah, so again same thing and he's right they don't want to give out that power But you can see how there is a shift moving on So I think we're in the right place at the right time It's just going to take a little bit more time And the next question is what were the lessons learned from 3ac sales gets in voyager I know this isn't a very popular opinion, but just take a listen to what he talks about as far as regulation Yeah, I mean, I think the answer is absolutely. Yes. And you know, I I guess my first thought is Wouldn't it be better if these activities were happening inside of the regulatory perimeters? So, you know, wouldn't have been better if three errors was regulated as an investment company Wouldn't have been better if terra luna was subject to banking regulations, right? But for whatever reason, you know, this administration has kept those things outside Which means there's absolutely no visibility into what's going on, you know A bank would never have had the terra luna problem. It would have been seen way earlier We didn't have that so that's a problem And I think the lesson of all of this is better for this to happen with supervision than without So I know what you're saying right now. You're like, I don't want any regulation I don't want it look He didn't talk about how they're going to regulate the individual and yes, people say well, that's coming rob I understand that however, look, I didn't do anything with three errors capital. Did you I didn't do anything that had to do with uh, with with luna and their decisions. Did you But I did a lot of things that that happened that was correlated to those issues So If the industry can get in there and go, you know what we want to see some of the things you guys are talking about We want to see some of the data we want to see some of the reports Because we don't believe that that is true now the banks have their own problems, of course Nobody's perfect But I think honestly that's a step in the right direction and I know that people will not agree with me I get that but I just think that there has to be some regulation for us to move forward and then also In the last or third to last year The macro events influencing the market and how is this good for bitcoin and he he gave a great answer And uh, it's something that I really need to start to to drill into people about what he talks about I'll just take a listen military policy, right? So the fed is a key driver But let's look at the war in ukraine and what it means for all risk assets So, you know in the same way that the fed's hawkishness on inflation is bad for bitcoin price I've been saying this for years Some of your colleagues have made fun of me for saying how can you say that? Turns out i'm totally right But on the side of other macro stuff, let's say that something really bad happens in ukraine Like let's say that the russians detonate a nuclear weapon as part of their strategy That'll be great for bitcoin unfortunately because bitcoin is a last resort when the system fails So the question is what other things in the system can fail not just high inflation, but national security Or any other macro shock to the system all of those things, you know give rise to high bitcoin prices So again, unfortunately, it's true. I think there's uh, if those things happen then again it just leads us into Those are horrible macro events where bitcoin can be and then also Second to last we'll talk about when will bitcoin rally the couple from the traditional markets. Just take a listen I I totally do. I mean the times when that's happened have been times of crisis So if you think about when bitcoin went from 5,000 to 69,000 It was during the covid lockdowns right when the stock market was going up and down, you know up slowly But bitcoin went up like a rocket ship It was all because we were in a macro crisis environment and people saw it As a mega safe asset, right? It was a hedge against the end of the world. That's what it's historically been When things go back into normalcy, you know out of a crisis mode It's a risk asset and the reason it's a risk asset is because it's thinly traded still today So the two things that have to happen for bitcoin to do well are more uncertainty in the world Weirdly but also broader adoption and when more people own it It won't be like any other risk asset. It will trade it for its fundamentals Yeah, so I don't know about you but I think the world is due for a little more uncertainty We don't know what's going to happen with Ukraine. We don't know what's going to happen with the prices We don't know what's going to happen with Nord Stream and Russia And inflation and there's so much uncertainty. I think this is the time now not to say that bitcoin's going to go to the moon tomorrow But it's just a little bit of dominoes that fall along the way And then lastly, I think this one's the most important. What's the missing piece for mass institutional adoption? And it's not about the question. It's about the answer It's about the people that are here right now the people understand and getting rid of the trash that's really out there Just take a listen. Look on the one hand. There's some surprising positive news, right? Just this morning dny melon that they're going to provide custody support for customer crypto assets That's a big deal State street has doubled down on this business over the last couple of weeks black rock announced a coinbase partnership Google pay said this morning that they're going to use coinbase to clear bitcoin payments inside of that environment These are all amazing stories for institutional adoption But there's still a lot of things missing. I mean one is we don't have enough bank chargers to provide custody support for the asset class Our kyc and transaction monitoring tools aren't good enough, you know to really support bullet proof Sort of regulated activity for asset managers. There's still a lot of things missing So what I would say just coming back to your earlier question is in a world where All of the charlatans have now been flushed out, you know the three eras of the world have all failed What's left is the actual fundamental building, right? It's just like the 2000 you know dot com bubble The stupid ideas get flushed out the tourists are gone and what's left is to build an actual decentralized financial system for the world That's who's left that's right The stupid ideas get flushed out and the tourists are gone So if you're here watching this stream and commenting first of all, thanks for stopping by you are by no way In any stretch of the imagination a tourist you're here probably for the long haul and it's going to Probably play out pretty well. Again. No one knows the future, but I got to tell you these are the times When there is Prosperous abound It's just that it's just who's going to stick around for all this hardship because I got to tell you If you think that tomorrow is going to be Awesome or next week or next month. It's not it's going to get tougher And you're going to see the market slide and you're going to see these ups and downs Now there's going to be bear market rallies. I can I'm sure of that but it's not like the april 2021 november 2021 Uh bull market when things just take off like a rocket ship. It just doesn't happen like that It's a very slow slog. There are no get rich quick schemes It's just every day show up and be that person. So anyhow, that's it for today So look, let me just think about that in the comment section now We'll do a little bit of uh q&a And just go over i'll answer all your burning questions if you got to take off take off You've been here for 16 minutes. That's pretty good I appreciate you stopping by but that will do it for today's news now. Let's jump into A little q&a and go from there. So And jupiter jupiter says my loss 40k luna would like some regulation. Yeah, exact