The Battle Between Central Banks and Free Markets with Jeffrey Booth | Solomon Investor Central Banks Vs. Free Markets? This battle is one that you all are aware of -and right now, with the direction our nation is heading, it just might be one of the most important topics for investors to gain more knowledge about. Today my special guest is Jeffrey Booth. Jeffrey is an entrepreneur, technology leader, author, and strategic advisor. He’s the author of the book, The Price of Tomorrow and the Co-Founder of BuildDirect, a company that he started out of his house and took it to more than $500 Million in market capitalization. In this episode of the Solomon Investor Podcast, Jeffrey and I will be going deep into discussion about the battle between central banks and free markets, as well as discussing a possible “life raft” for surviving the economic future.
The Battle Between Central Banks and Free Markets with Jeffrey Booth | Solomon Investor
Central Banks Vs. Free Markets?
This battle is one that you all are aware of -and right now, with the direction our nation is heading, it just might be one of the most important topics for investors to gain more knowledge about.
Today my special guest is Jeffrey Booth. Jeffrey is an entrepreneur, technology leader, author, and strategic advisor. He’s the author of the book, The Price of Tomorrow and the Co-Founder of BuildDirect, a company that he started out of his house and took it to more than $500 Million in market capitalization.
In this episode of the Solomon Investor Podcast, Jeffrey and I will be going deep into discussion about the battle between central banks and free markets, as well as discussing a possible “life raft” for surviving the economic future.
Key Takeaways:
Introduction to Jeffrey Booth (2:24)
What is deflationary technology? (4:22)
Why have we never noticed how much money the government needed to print to keep us in stasis? (10:50)
Uncertainty in the market (18:27)
Jeffrey’s thoughts about being invested in the stock market (19:57)
How continuing to print more money gives the government more power (28:49)
What could be the liferaft for a peaceful transition into a new economy? (33:40)
Could Bitcoin become the world’s reserve currency? (37:45)
Banning Bitcoin? (43:36)
Jeffrey’s final thoughts for our viewers (48:05)
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If you look back through history, when a whole period of the population doesn't have things and a very small part of the population has everything, the people on the bottom take it back through force $250 trillion of debt to run an $80 trillion global economy. So banks would fail. The the institution's on top of those your governments would fail. In a deflationary in a deflationary spiral, we would want to actually not look at what variables there are. But we want to ask ourselves, is this a wise investment in more and more So is this the wisest investment? Our Solomon Investors are looking for that wisdom to actually get outside of that system? And there's a large leaning toward Bitcoin and, you know, we see it as this digital gold. Hey, this is another Solomon Investor show. I am your host, Blake Templeton. And this is where we focus on the wealth strategy of the world's wisest man, King Solomon, and translate it for you, the 21st century investor, covering everything you need to know for wealth, faith and excellence. In this episode, we'll discuss the internal Battle of the deflationary technology and the inflationary forces that stemmed from central bank's monetary policies, and most importantly, how it affects your investments. And by the end of the show, we'll cover the ultimate battle of what might become the next world currency. It is here that you learn how to take control of your financial reality and write your own narrative for your future. Okay, so for those who are new, what's The Solomon Investor, a Solomon Investor is one who looks at the wisdom of King Solomon says, You know what, I want to be directed by God, I want wisdom, then I want wealth, so I don't invest in the public market. I actually take control of my wealth in the private market, and we build exponential wealth. And this is how you'll be able to have peace in the middle of chaos, to have confidence in the middle of uncertainty, and most importantly, to be able to build exponential wealth sustainably. So if you want wealth, faith and excellence in your life, then take action right now and smash the like button, then hit the red icon, subscribe to this channel, and last hit the bell icon to be notified every single time a new video like this comes out. All right. with no further ado, my special guest today will help me unpack the pillar of wealth. He's an entrepreneur, technology leader, author, strategic advisor, Jeffrey booth. He's the author of a book, I love it. You're gonna have to get a copy of it the price of tomorrow, and the co founder of build direct a company he started back at his house and took it over $500 million in market capitalization. Here's some fun facts about Jeff. He spends a lot of time helping young entrepreneurs achieve their goals and his downtime. Jeff, you'll find him playing the guitar at the at the lake, making a campfire with fans and friends and family, enjoying watersports and skiing up in the mountains. He also reads 50 books a year. That's my kind of man who actually is always like impregnating that new wisdom inside of him. So Jess, welcome to the show, my friend.
Thanks for having me back.
Hey, it's my joy. I really look forward to unpacking some of the wealth of wisdom for how much width and depth you have. You you've really articulated some key points that I've never heard anyone else talk about. So I'm super excited to get into that. You and Jeff, why this. I want to set the stage of why this episode is so important for my listeners, you as most of us are aware of the political system unraveling and the media outlets censoring what is truth, the stock market, you know, has been manipulated. And we're headed toward a socialist communist ran structure as a company as a country. And so it's now that we've got to be good stewards and rise up and gain conviction, let that literally flow over into our investments. So I'm excited to pick your brain. Why don't let's just jump right into it. You know, one thing you believe is that money printing has created a competition. And this is a competition that I've never hadn't heard anyone else talk about. And you you beautifully talk about it in the price of tomorrow. But it's a competition between deflationary technology and the in the inflationary forces of essentially printing money. And I guess before we talk about which one you think is going to win, let's tease that out on a practical level. Like what does that mean? The deflationary technology? Why is technology bringing a deflationary quite sad, and the two great forces in our life that we don't measure everything else that we see in the news as a derivative of these two forces colliding against some selves. And so what's happening is technology is providing efficiency on an exponential scale. So more and more efficiency every year, and it's writing on the back of Moore's law. And eventually, Moore's law will turn into something else. But whether it's quantum computers or or like, it'll feel like, like exponential technology in our lives for for time to come. And that means things should be getting more and more efficient. And that efficiency should be driving prices down lower and lower and lower. So so when we look at a CPI index, we see TVs are getting bigger and cheaper phones are getting more powerful and cheaper, we see a whole bunch of things that that seems to, to to look, it looks normal, right? And so we would find prices converge driving, driving down prices, or technology is becoming a base layer of everything, we do everything. And that means sector prices should be falling everywhere. And so so my thesis was, Why are we not seeing prices falling everywhere. And when you look at the other side of the coin, the the other side of the existing system we live in, which has always been inflationary. We, and that's been by design, because it requires a bunch of debt. And if you have deflation against that system, that that keeps unwinding. So so so we live in a system that is inflationary by nature. And then then, but if again, once my Oh, if you go into my thesis, what you'd say is it should be getting exponentially cheaper. And then something must be blocking that, that from getting to market that must be in that exponentially cheaper would be driving abundance broadly, in everybody's hands. If you let the free market work or so.
So there for a second. So like you're saying like capitalism, that's, that's what should happen. It should be happening even more, though, is what you're saying.
So, so it's not happening. And so it's marking it so so when you when you look at the other side, you realize, okay, there's there's today or when I brought the book, $250 trillion of debt, to run an $80 trillion global economy. And that sounds like a lot of debt. And it is a lot of debt to run an $80 trillion global economy. But again, if you if you consider that technology is just starting, and it's actually getting more and more, most of the deflation is in front of us. Looking back over the last 20 years, you should see an acceleration of debt, or an accelerated ation of printing to be able to stop deflation from happening. And that's exactly what you see. So in the last 20 years out of the $250 trillion of debt that globally 185 trillion has been printed or brought into the market over the last 20 years. And so that is stopping some prices from falling, or stopping all prices from falling and stuff and driving up some prices way more than others. So, so it's essentially butchering capitalism, and inflation on what inflation is. If you have the assets, the assets rise in price accordingly, inflation, if you have housing, the inflated housing will go up. If you don't have the assets, your pocket is picked. So the other side of inflation is wage deflation. So if you have cash or your wages, those are going down in real terms. So what's happening and and a lot of people will when they're zooming into this, because they're inside a system that they can't see that over there can't step back. So they're measuring all of their interactions from that system, right? So their food prices are going up, their house prices are going up everything else and they can't see what's happening and why that's caused. And what I'm getting at is that is not the free market causing it. It's anything but in fact it's so it's so it's a breaking of the rules of capitalism. And, and it's not just in the US. It's not just Canada where I am. It's globally all governments are easing and trying to print and into this.
Sure. And so you, you would say that there's a battle then, because we have technology getting more efficient, it's getting faster and faster, it's getting easier to make, it's getting less expensive to make. So it's sold at a cheaper price. But then you have the inflationary force of the printing of the money, and these two are colliding. And it it really confuses what people are seeing. Because capitalism, you just see one single side that you just see the free market rain, everyone would be in abundance, you'd see everyone thriving. And with these, so we have to unpack that a little a little bit. So so. So what I'm saying is the free market would, would, we would see deflation, we would see a complete reset of the existing system and the debt would be wiped out. But if the debt was wiped out, if you let that happen, all the banks would collapse, governments themselves would collapse, because there's nothing backing the debt. Right? So so the free the free market requires a cleansing of, of excesses, you're you've got a problem. Either way, it's what you're saying? Either way. And it's a transition between systems, right, so so we never noticed how the using or how much governments needed to print to be able to keep us in stasis, because technology wasn't moving as fast as it is today. So we didn't notice, let's unpack that right there. Because that's a key point, share more on that.
So so in the 50s 60s, the 70s, we, governments didn't need to, or the technology wasn't moving at the rate, it's moving today, technology is moving at a different rate. So So today requires an offset, to keep an inflation target at 2%, what they're trying to do is overcome, take interest rates lower, so people will spend more and lower in destroy the value of your cash to say you spend more and and then and when that doesn't work, I'm going to print new money to be able to really destroy the value of your cash to be able to try to get out of this. And and so when I said that 185 trillion over the last 20 years, that's before COVID. That's before anything. Right?
Right. Right, right, what what has to happen logically, going forward? Is that number, and here's a better remember, remember, in 2008, when the poor were on $250 billion was was was printed and kind of given to the banks to be able to so we stopped capitalism from working. Sure. And we save the system. Right? And, and that 250 billion, remember the the marches and everything else on what that look like, today. They were talking about trillions and trillions. And tomorrow, we'll be talking about 10s and hundreds of trillions. That's what it looks like.
Yeah, it's a really good point. I'm really, really good point. So I go back, I remember when I was in third grade, Jeff, my parents received their first computer. And that computer was, you know, it cost $3,000. And obviously, we know that it had, you know, the amount of memory of you know, almost nothing, and the speed was almost nothing. And a couple years later, when when internet came it was dial up and you would push a button and walk away for 15 minutes. And so what you're saying is, prior to that, things weren't moving, technology wasn't moving fast enough to bring down the price of the of, we'll just call of technology. And so the price of technology hovered at a higher price for for a longer time. Now, because it's exponential grade of technology. And the fact is, everyone's using the same technology and building upon it to make it faster, more efficient and cheaper. It's almost like you literally have to print so for my listeners to like to break that down. It's like if if you didn't print more money is what you're saying Jeff couldn't from wrong if you if you didn't print more money, everything in that sense would get cheaper and cheaper and cheaper and it would be harder to actually run a look let's see let's use an example.
Housing is a really concrete example for for today. Everybody wants a house they spend more house and why do they want a house because they think if they buy a house it'll go up in value forever and then they can retire one day with That house and they can live off the savings. That's why they really want to have a great place to live. But that's really why the only reason right? And and then the same thing, commercial real estate, if my rents will go up and everything else over time, all of that concept is because of inflation, the assets rise in price over time. And all of that concept is driven by the same thing. Ask for any listener that listening this this, if you think housing would have gone up over the last 20 years, globally, if there wasn't $185 trillion of additional easing into the market, you're not thinking straight housing would not have gone up. It got it goes up, because you're the the you're changing the money supply, to be able to add more currency units to make it go up. And so so we live in that world, and we're measuring everything by that world. So let's just say what would what would governments today do? Assuming now? No, they didn't see what happened is, technology comes on slow, and it just gets better and better and better. And people don't see how fast it's moving. The same reason that blockbuster didn't see Netflix is exactly the same reason, policymakers don't see how fast technology is moving. And what did blockbuster do, once download speeds increased? Their 9000 stores and all their videos and everything else, the entire thing that made them their company, their economic engine was destroyed overnight. And so what did they do? They had a candy aisles to the stores. And we laugh at that, right? We laugh and that's crazy. You could say what are policymakers doing today? They're adding candy aisles to the stores.
It's a great point. There's nothing they can it's not because they're it's just what would you do if you're a policymaker?
They have no tools in their tool belt, right?
What would you do you if you don't run if you don't try to create inflation, so you can pay back the debt and cheaper terms tomorrow,
which is all theory still that they're going to be able to pay it back in cheap terms, right. But if they if they do base their currency, they can because the currency is worth less than they pay it back with what with worthless current currency. So they can if they if they can drive inflation to a certain rate they can, but that debasing current currency has has a huge implication for population, right? Because it picks the pocket of the most vulnerable and hands it to the wealthiest.
Yeah, and set it another way. Those who don't have assets who have a store hold the value, then those The only ones at the end, when that currency is the base, we're gonna have anything.
Exactly, exactly. But but but again, the tail risk isn't that either. Because if you look back through history, when a whole part of the population doesn't have things that are very small part of the population has everything. There's nothing like the the people on the bottom, take it back through force. Yeah, it's an interesting thing. And I think we'll we'll touch on some of that, that there may be a solution to that. So guys stay to the very end of the podcast, because there is hope around the corner. Hey, guys, before I forget, I want to give the details to a live investment webinar, where we talk about where you should be investing right now in our current economy, put your cell phone and text the word Solomon to 31 996. Again, text the word Solomon to the phone number 31 996. And I hope to see you on the other side, there's a you know, let's move on to there's a lot of uncertainty around the stock market, for example, it's become more and more apparent that there are zombie companies, you know, they can't pay their actual debt service, they can't pay their principal and interest in their actual publicly traded companies. And they're literally living off stimulus. And many feel like you know, there's a collapse coming. And you said in a previous interview, that without more stimulus injected into the market, you know, expected downward spiral and if stimulus stopped, that downward spiral would take stocks down, potentially 80% 90% 90%.
Everything would so banks would fail. The the institutions on top of those your governments would fail in a deflationary in a deflationary spiral.
So, you know, we're in a really volatile situation here. We don't have a crystal ball with the feds gonna do. So let's let's step into our investor hat and our investor hat, we would want to actually Not look at what variables there are. But we want to ask ourselves, is this a wise investment? More More? So is this the wisest investment? where I am in the stock market? And so let's tease this out. You know, and I appreciate, Jeff, from your vantage point with your width and depth, understanding oral history, understanding what the economy's doing, and where it's going right now. With your investor hat on, why are you not invested in the stock market?
So I have some input. But as a as a Porsche, and I just think there's better opportunities for for my wealth today. This is bigger, though, than then the thing that you're talking about, where do I protect my wealth? Where do I, if you looked at the probabilities of on the game board, so let's just look at the game board. And that's what many people making investment decisions and life decisions right now don't understand the game board they're playing. And the game board is changing from a world where they could safely get returns in the stock market and a whole bunch of other places. And, and capitalism generally worked, you could value invest, you could find that, too. Now, the entire market is is fed into store, central bank and induced and if it stopped, so, if that continues, then the tail risk becomes social upheaval. So so so that's the game we're playing. And if it stops, then the game board becomes becomes cash becomes King. So let's just play that side, side by side. So you have a probability distribution of things that are going to happen. And you could say, in high probability, not 100% and a high probability, the government's are going to have to keep printing. And so you could play out what that looks like, in that. Now, it's going to be bumpy along the way, they're going to try to remove stimulus. And then things could collapse. And then they're going to have to add stimulus back in, if you remember what happened in 2008. Because they can't, if they let the banks fail, and everything else had just everything's stops. So so if you looked at all of the probabilities of that event, they'd be one. On the other side, you have technology marching on colliding against this. And in the end, governments are not going to be able to stop what's happening in technology. In fact, they make it worse. Because it let's say you said in the stock market. So let's use airlines as an example. When I was growing up, what people would do is hold cash on their balance sheet for a rainy day, because if there was a bump in the market, they would be a buyer. And they would take weak companies out. And they would and they would consolidate power. So it was worth having cash on your balance sheet. Today, if the Fed says to to see, essentially, this fed says we are going to punish you for holding cash because we're trying to destroy the value of cash. So what would you do as a CEO, you would take that cash and you'd buy back stock, because that's where you would get the best return. Now comes along and event and every other CEO does the same thing. Because essentially, the market says don't hold cash. Otherwise, you're not going to be CEO very long, right. And then every time that the market has a dump, dump, instead of the loser, the people with no cash failing, the market bails them out again, the Fed bails them out again, because no one has any cash on the balance sheet. And they've all lever it up. And if they the Fed doesn't bail them out. The collapse of the general economy is so horrific. So so by instituting these crazy policies, you make you drive more instability in the entire overall market. So So and people are making rational decisions in an irrational world. So they're making their own decision and in a rational world, and they're making the best economic decision they can be as it is here. On the other side of that coin, is what the Fed is saying to is, you are either going to be a ward of the state forever. Because or, or there are a lot of the smart CEOs are saying I have to use technology to remove labor and make my business Uber competitive as fast as possible. Or I'm going to be the word of the day. That's what it looks like. So in fact, it's actually happening faster and faster. All the while technology is moving and wanting to give us more for less. So that's, it is really important that people understand the gameboard that they're playing on. Because a lot of it, here's, here's a good way to say this, if you're running on a plane, and measuring how fast you're running from the plane, versus running her measuring how fast you're running from the ground, there to different speeds. Sure. And so if you're measuring the system by the system you live in, you're not going to see what's really happening.
You have to get it, you have to back up and see what's happening in the overall system that we're playing. And what are the likely responses of the of the system? When you asked me about Bitcoin? As an example, Bitcoin is measuring the system from a different system. So it's, it's a more pure market segment?
Yeah, it's a very interesting process. And I love the mindset of that you're saying that the, what we've been taught how we've grown into learning about finances, or your economics or how you invest, that doesn't work anymore, and it doesn't work in this system? Because it's, it's, it's on a different speed, then what you Your, your idea of what would be logical? Is it err, logical, because of the conundrum that we're currently in as a economy, right. And if you play that forward, so if you play the probability distribution, that governments are going to keep printing, then the probability of revolution and or totally different tax rates on some of the things that you that you've invested in, move higher and higher and higher all the time. So we're living in a, again, your bill, what's happening is, you're you're building more instability and do a system that cannot work against deflation, that technology that's more powerful than, essentially, technology is more powerful than whatever the governments are going to do to try to stop. That's as simple as I can say, if the name a CEO that's putting technology in their company to make prices go up. Why do you Why do you use technology, you use it to save your time, more efficient, look at look at, look at your phone, and what your phone gives you for free today, when 20 years ago, it was only a phone. And you'll see you'll see what's happening in every industry at lightspeed. It's just started.
Yeah. And what what I hear you saying, it's a great point, too, is that there's no way that they can print enough to save the economy.
Do you know why so so think about the 180 5 trillion over the last 20 years. And every time that the Congressional Budget Office said, here's what we're going to reduce rates by this much, and here's what growth is gonna do. And every time they massively missed what growth was gonna do, right, they massively. They thought they overestimated how much growth would to get out. So that's what is happening. Because what they're, they're not playing with rules that it's like blockbusters saying, having cutting aisles, and now everybody's going to stop downloading Netflix, and they're going to come.
Well, how fast technology is moving?
Exactly. So they're pouring water into a hole. And technology is moving faster the other way? Yeah. So then that then they go, Okay, well, CPI is only 1.5%. We can't get we can't get inflation higher, we keep trying to get inflation higher, right. And but, but that inflation is showing up and house prices, food prices, and everything else and other things that in their in their basket that they're measuring are coming down just as fast.
Yeah, it's a very interesting thing. And so with that said, they continue to do this, they'll soon come to a point where they they say, you know what, mmt or modern monetary theory, we've got to kick this in, which simplistically means the US and other countries can don't operate with unconstrained revenue, and you can print helicopter money and give it out. And I want to interview you talk more about that, which is interesting, that the Fed then loses credibility, and then all bets are off with inflation. So the Treasury essentially will become the Fed, and print money and distribute that money out and as if that's gonna, you know, save the world that's gonna that's gonna actually Be the the savior of this financial system, right? Well, why that? Why it won't be that expensive? What won't be? Okay?
So anytime you start doing this, you move more and more power into government's hands. So right now today, I think it's 26% of personal income is driven by the government right now. I'm on a bunch of boards. And I see the company saying, okay, here's how much government grants I'm getting, how many government grants I'm getting, and that's why I'm profitable. I'm just profitably because of that. And what they're not doing is they're not looking at it. And what they're not doing is they're not looking at all of the businesses that do business with their business, that the same thing is true, they wouldn't be doing business, those businesses would be out of business for if not for the money. So it's not their people that are looking at their own situation, measuring the system in a system is getting more and more fragile. Let's just look at what inflation is. So inflation, is when the value of your dollars are worth less. Right? So goods and services cost more. So when the government says we're trying to drive inflation, how could that be good for, for people without, without a lot of, with or without a lot of assets? It's impossible, right? Right. So so then say, that didn't work. Now let's create more money to we're going to hold that we have to drive prices even higher. And then we're going to take that money, or the prices that we are going to create more money to give these people a little bit of money to pay for the prices, we're driving higher. That's mmt. And so so on that on that path, what you do is you concentrate more and more power into government, and less away from the free market. Because and because the government can never make decisions that a free market can make. Because it's a small, essentially, you're saying a small group of people can outperform the information of all people. That's what you're saying. But with that equation, what happens once you're on that path, essentially, you're on a path, that's it moves to control by the biggest tug. So you've given up the free market, and giving up the free market has consequences. Because a free market has, as has over time, because of the choices in a free market. The taxes come from that free market to pay government social services, and and to pay for the other things we want. And, and and if so if you don't have a free market, if you're if you've, if you've essentially, if you can't operate a vibrant free market, then you don't have the growth in an economy to be able to give the services to everyone so so in that when you look at when you look at Russia, and you when you look at other countries that go through this kind of control through biggest thug over time, that the economies fail, and some and written somebody has a lot of power. Yeah, the population does not, the population does not and and then comes this understanding that you have a monetary reset coming. I mean, somehow, some way, the only way around this is that monetary reset, and through oral history, we see you know, countries debasing their currency. And I think you and I agree that they get deeper into that debt trap, which, which is what we're in and the normal situation that would typically happen is that this would be solved through wars or uprisings where they have that to actually blame as this problem, they reset start over. And so let's process through its transition to what could be that life raft what could be a peaceful transition, that would keep this from being this massive issue where literally there becomes you lose the middle class, you make a massive poor population and this high risk population, how and then you mentioned great, a great point was that it never stays like that because the the poor always are going to take back what's been stolen from them. And so what could it be that peaceful transition, what could actually be that liferaft so first revolution and war, so the revolution person typically precedes war, one way or the other because, because the population is so struggling, that somebody comes into power and says, It's not your fault. It's those people's fault over there. Right. And if you see any actors In the system today in the political system, that's what's happening on both sides of the aisle. It's not one or the other. It's both sides. Yeah. Because no change, and an actor can change the system. And it's not just happening, say, in the US and individually, and you see all the political divide. And most people talk about the political divide, instead of the thing that we're talking about, that's driving it all. It's also happening a geopolitical level. Because Because when your population when when there's not enough people to say, okay, that didn't work, you have to create a different external enemy. It's a, it's a great point, it's China, or it's Russia or so. And so you can see, and by the way, they're doing the same thing in their countries, right, because they have to write because the economic system is unstable, and the need for power, they have to, they have to gain their citizens trust that there's a fix to it. And there is no fix to the existing system as it stands, besides resetting through war, or Besides, besides countries coming together and saying, we're going to take a hard landing, and figure out a new currency regime, a regime of the world, but in a, in a, in a world that doesn't trust each other is very unlikely to happen. Right? So So what could what could be the most peaceful transition? And this is why this is why I like Bitcoin. Because it's, it's outside the system. And it produces, it's a system that's gaining more and more network effects value. And that and that system, eventually, I think we've so early on, people are gaining, gaining value on it, as they add more value is becoming stronger and stronger and stronger. Now companies are holding it, big companies are holding it as a treasury reserve. And I think eventually countries have to as well. And if that happens at a pace, that's the right pace, essentially, you could look at 400 if you looked at today's measure of value, call it $400 trillion of global value. Sure. And in Bitcoin has 21 million coins 21 Bitcoin, so you can divide if what I said is going to happen, you could divide 440 400 trillion by 21 million, and that would be the relative purchasing power of each Bitcoin. And so if you measure what's happening in the world today, around and you put your frame of reference in bitcoin price, everything's following a path of lower and lower prices all the time. It's we don't see what's happening because we're measuring and fiat currency.
Yeah.
So last last year, the average house in the US might have cost 10 or 15. Bitcoin. Today, the average house in the US cost is for Bitcoin. Yeah, that's a great point in in the US dollar, the price is getting more expensive. And Bitcoin it's getting cheaper, the college tuition in the US dollar is getting more expensive and bitcoins getting cheaper. So you see, that could be a peaceful transition, you see that it's a life raft right now that it makes sense. And, you know, for those who fully grasp that the printing of money, and just trying to solve a temporary debt crisis, they get it, we're now in this Ponzi scheme where you can't keep up with it. And we'll the base our currency and our Solomon Investors are looking for that wisdom to actually get outside of that system. And there's a large leaning toward Bitcoin and, you know, we see it as this digital gold, right, Jeff, I mean, it's, it's a store hold of value. It's a digital bank, in cyberspace. It's the centralized, ran by not ran by a set of people with an agenda. But it's really called that the people's money, and it's been bound by you mentioned has been bound by this limited supply, which fully removes the ability to, to fall into the same debacle as the current US dollar, which is able to be diluted and with more printing of just, you know, drum power pushing Ctrl P and printing those dollars. So, you know, in your massive width and depth of history of currencies I share with my audience by making the case why Bitcoin, you know, could become the world's reserve currency and on national currencies will eventually be pegged to Bitcoin.
Yeah, so, so today it's about a $2 trillion market cap and a lot of things have to move. along that path, but because it's decentralized, slow, same reasons you just said in the past people would peg to court. And so why did school to have a heater $9 trillion market cap today. It's not because it's pegged to currency, it's because of a belief system that people believe that it will be pegged to go to currency again. And, and that, and that belief system, in my belief is flawed. Because gold itself as a store of value is flawed for the same reason, because it needs to be a whole bunch of whole bunch of reasons, but let's just take one of those, because gold has to be centralized. And because it has to be centralized governments in the history and if you look back through time, always take the gold and rewrite it and rewrite the GAAP rules. So or in 1971, the US goes off the gold reserve to push out their their their risk and essentially underfunded liabilities to the rest of the world. And so they could drive deflation or inflation through the seven days. So they couldn't do that with gold, because they were so so they had to because France asked for the gold back. So they went off the gold reserve. The so gold as a store of value. Not that it's not, it wasn't some time when we didn't have something better. It was a good store of value that did this, but it was always subs suspect to government's controlling it because of its storage, because it wasn't decentralized. And and Bitcoin is decentralized, if you can remember 12 words, nobody can take your Bitcoin. And you can, and open why it's so important is the liferaft. Like, think about the Weimar Republic. And think about in this kind of the rise of Hitler. And when what happened on the Roman Republic, same thing, a whole bunch of people through hyperinflation, were getting killed. A very small part of the population was getting enriched. Why didn't the people with with all the wealth, see the writing on the wall and see what was going to happen next, and get out of the pen get out of Germany. And because they were getting enriched by the same system, and by the time, by the time they wanted to leave, or could leave, all of their wealth was inside the system locked up and ran the same system. It's not like they could take their real estate with them, all of their assets lived in the country. And they and and so, so in and, and the is, it wasn't really easy to sew a gold bar into your clothes, to be able to to get out. That's why Bitcoin is such a good life for life raft. Because you could go anywhere with 12 words and you can protect your wealth. And that nobody if nobody could stop you, nothing competitive. Nothing can take that from it. So if your country, most people don't see what happens because they essentially it their frogs boiling in a pot and the heats getting turned up more and more and more, and they don't see what's going to happen next. Right. In this in this case, you could go anywhere.
Yeah, it's a really good point. Um, okay, so I'm gonna play devil's advocate with you for a second, for those of you who get it, they understand the writing's on the wall makes a lot of sense. They see the life raft, they see all the points we've made about it, you know, some, some fear, the largest problem with Bitcoin is potentially maybe they can't take it, but they do a government ban, potentially. So let's expound on the game theory. You really articulated that? Well, you know, and the understanding that the competitive world we live in where every region needs to attract wealthy people and wealthy businesses and if a region bands it another region will accept it. And so it's a really clear point, expand on that for me and so first off every government that has tried to ban Bitcoin, Bitcoin, the Bitcoin use expands. So the populations so if I put this on a tweet recently, I said, if your government tries to ban Bitcoin, they're screaming at you why you need it.
Hmm. That's great point.
But but so that's what's happened in every country that is tried to ban after the actually the use explodes and the impact but but even Failing that, let's say a government kind of bans all the on ramps off ramps and they really clamp down What happens is other governments it provides a more of an incentive for other governments to, to accept it. Because governments like corporations, like anything else, you're trying to attract capital. I can go to Portugal today with my family with a golden visa, and for 250,000, and get all my family in what's called the Golden visa, and all it takes is a 250,000 investment into Portugal. It's not a gift. It's an investment where I make a return. Why? Because they're looking for the investment dollars to drive more jobs. Why wouldn't the same thing happen with Bitcoin. And the same thing will happen with Bitcoin, so that the game theory creates an incentive. So if governments try to stop it, it creates an incentive to accept it. In fact, us is probably I think is going to help. The on ramps and off ramps more in a thriving ecosystem around it is that is what I would expect. Because if you think about the geopolitical risk of China, it actually might be the only way that us can retain a lead.
It's a very interesting thought line.
Because because China gets away with it, there's never been a country in history that's created faster, or higher debt to GDP as China, the amount of that so they're doing the same thing and stimulating and stimulating, stimulating. And, and well, every country is doing the same thing. It will look like China's the great, how fast they're growing, and everything else it will look like that's happening because every other country is doing it. If you went to a deflationary currency, if you went to deflation and allowed that to happen, communism doesn't work.
It's a great point, you pull power from you pull power from leadership like that.
Yeah, that's a really interesting point. Yeah, very interesting. So, again, power comes from power. In many cases, people don't know it. But it comes from manipulating currency, and people are not the wiser.
Yeah. And with that manipulation, if you stay under that system, we've talked about it all the time as like you're a trader, on the trade routes. And the truth is, is is you now have to you can't be a trader on the trade route anymore, you can't actually be in their system, you're gonna have to be outside of their system, if you're going to make if you're gonna sustain your wealth, because your wealth currently is losing value or your dollars buying less. And, Jeff, I appreciate your, your width and depth. It's a really, really interesting concept. It's more the reason why we've got to have our money's in assets to actually hold the store, hold the value, have strength, we control, it's not held, for instance, in the in the public markets in a mutual fund with a basket of products that are an index, it's gotta be something that's not tied to that centralized system. So I really appreciate that any final words you like to share with my listeners,
probably just just that, in an environment like this, there's going to be obviously a lot of confusion. And you see just about the news is filled with that confusion. Political, geopolitical, all of this can game a whole bunch of wealthy that don't know that the main driver of their wealth is the inflationary policies that's making a whole bunch of other people poor, a whole bunch of poor people that don't don't realize that this is his same thing, all looking to different actors within the system, government to be able to solve the problem. And it is a problem that the government on the existing system can't solve. It has to be solved from a from a new system. And so what I would say to people listening, expect, expect a lot of noise through this expect to have empathy for what other people are going through and there and give them time to understand what you might understand. So in in a way to so once you protected yourself and understand and help other people to see what's going on.
That's a really it's a lot of wisdom right there. And that's, you know, pre framing that there will be volatility there will be confusion, there will be lots of voices. There's not a solution in this In our current system, there's not a solution. I really wish there was.
Yeah, and I really wish there was, but there is not a solution out of the existing system.
And I appreciate you saying that, because before, you know, before COVID, when you wrote the book, the price of tomorrow, you'd mentioned that, you know, you had a, a hope, a hope that, you know, it's, the greatness in the book is the mindset that the hope is, you're wrong, because then everything gets better. And you'd rather you know, sacrifice on the sword and be wrong for the system to be better. And you mentioned, you know, after COVID, watch it and you want to, it's seen in your book. And again, guys, why deflation is the key to an abundant future. You say you make the point you're making the book are very, very clear. And it's it's playing out that the chess pieces are playing out exactly as you had mentioned, the only change or the only difference is that it's happening faster is happening at at warp speed. And so the, the tie a bow around that there's, there's in our current currency, our current system around the currency, there's no way to fix the problem, it'll get worse no matter which direction they go, it'll get worse. And so that's why guys, The Solomon Investor, we see that we want to be out of that system, we don't want to be in the middle of their volatility, because without control, you are fully controlled, we want to be out of their system. And that's where you can thrive. You truly can thrive in a decentralized system. And man, love that, again, guys get the book, the price of tomorrow, we'll put it in the show notes. Jeff, how else can my listeners find you?
We just best on twitter at Jeff booth on Twitter.
Okay, Jeff booth on Twitter. And we'll put that in the show notes as well. Jeff, I enjoyed it. We'll have to do it again. As as the noise and the voices begin to turn their volumes up. I look forward to having you back on the show. And we will, we'll turn down the dial and give truth one more time. Thanks, Ray. Hey, Jeff, it's been a pleasure. We'll talk to you soon. Hey, I helped with this podcast with Jeff booth has been impactful for your investment future. If you're interested in learning more about Bitcoin, if you have an interest in just seeing how do you do it? What is it? We have a live webinar coming up, and we're gonna show you how you can actually invest in Bitcoin with us. So what I want you to do is put your cell phone and text Solomon to 31 996. Again, you're going to take Solomon to the phone number 31 996 and then we will get you the details for that live webinar. Until next time, this is another Solomon Investor Podcast signing out to your success.