Jack Mallers explores the Fed-Treasury alliance, stablecoins' growth, inflation's role, and Bitcoin's rise in a shifting monetary landscape. Insights on regime changes and financial strategies.
Timestamped Overview
[00:00:11 - 00:05:14] Introduction and Bitcoin Update
- Jack starts his show from a closet, sharing the current Bitcoin price at $117,340 and market cap of $2.33 trillion.
- He explains Bitcoin block time as an alternative to regular time for those interested in crypto basics.
- Discusses the Genius Act, a new law for stablecoins (digital dollars), and why it matters even if you don’t use them.
- Stablecoins help people in other countries access U.S. dollars easily, like a digital version of cash.
- Plays a clip from Treasury Secretary Scott Bessent praising the law for boosting the dollar globally.
[00:05:14 - 00:11:05] Stablecoins and Bitcoin Connection
- Jack notes he doesn’t use stablecoins but sees their value for others, like customers in Africa or Latin America.
- Shows a chart linking stablecoin growth (like Tether) to Bitcoin’s rise, as they often trade together.
- Explains that when Bitcoin’s value increases, more stablecoins are needed for trading, creating a cycle.
- If stablecoins grow to trillions, it could push Bitcoin’s value much higher, like to over a million dollars per coin.
- Introduces the idea of a “regime change” at the Fed, meaning big shifts in how money is managed.
[00:11:05 - 00:21:10] Fed Regime Change Discussion
- Shares a CNBC clip with Kevin Warsh calling for changes at the Fed to support economic growth.
- Warsh criticizes the Fed’s old models and suggests it’s not fully independent from the government.
- Explains inflation simply: it happens when the government prints and spends too much money.
- Jack highlights how the Fed and Treasury are “remarrying,” meaning closer ties to handle U.S. debt.
- Notes the Fed lost credibility by mishandling rates, leading to higher prices for everyday things.
[00:21:10 - 00:34:06] Attacks on Fed Chair and Historical Ties
- Discusses criticism of Fed Chair Jerome Powell over a building renovation, seen as wasteful.
- Plays a clip from Scott Bessent questioning the Fed’s effectiveness, like overpaid economists doing little.
- Explains fiscal dominance: government debt drives decisions, not just interest rates.
- Shows a historical chart where Fed-Treasury partnership during wars grew the Fed’s assets by 10 times.
- Links this to stablecoins buying short-term debt (T-bills) to fund the government without sparking immediate inflation.
[00:34:06 - 00:57:50] Bitcoin as Inflation Sink and Global Shifts
- Jack’s thesis: Grow Bitcoin to boost stablecoins, absorbing printed money without inflating goods like eggs or housing.
- Explains debasing the dollar (making it worth less) against Bitcoin or gold to manage debt.
- Notes Trump family buying $2B in Bitcoin and opening retirement accounts to crypto for everyday Americans.
- Discusses Russia using crypto for oil trades to avoid sanctions, signaling a move away from U.S. dollars.
- Ends with unprofitable companies booming irrationally and an NFL example showing inflation’s impact on earnings.
Notable Quotes
Bitcoin Price and Market
I'm talking to you all with a Bitcoin price of $117,340 that puts Bitcoin's market capitalization at $2.33 trillion.
Jack Mallers @jackmallers
Stablecoins and Bitcoin Growth
When Bitcoin grows, Tether has to grow. There is a direct relationship where if Bitcoin is going to be $20 trillion, then take whatever the ratio is today and multiply it by 10 for Tether.
Jack Mallers @jackmallers
Monetary Regime Change
We are living through a new regime change. I've said it for years now. The post-World War II monetary regime is over. It's dead.
Jack Mallers @jackmallers
Inflation Causes
Inflation is caused by printing money. Yeah, I know. Did you just propose that as a new idea, jackass? That's not a new idea.
Jack Mallers @jackmallers
Debasement Strategy
Debase the dollar against Bitcoin and gold. Are you guys following me now? That's the stable coin idea.
Jack Mallers @jackmallers
Bitcoin's Role
Bitcoin is the sink for stable coin liquidity. So stable coin is the sink for fiat inflation liquidity, and Bitcoin is the sink for stable coin liquidity.
Jack Mallers @jackmallers
Personal Responsibility
The only way to restore harmony in society is the renewal of personal responsibility. And so, Bitcoin rewards those that seek out personal responsibility.
Jack Mallers @jackmallers
Transcript
Jack Mallers [00:00:11]: We kick off the day with a little bit of proof of closet. Proof of closet for all the haters out there. Ladies and gentlemen, welcome to the Jack Mallers show. It is Monday. That means it is Mail Bag Monday every week without a doubt. Taxes Bitcoin and the Jack Mallers show going live every Monday. Hello. How are you? Hello? How are you? What do you think? Do I look like a podcaster to you? No, I’m that one guy in the empty closet. You know the drill Let’s hit the road I’m talking to you all with a Bitcoin price of $117,340 that puts Bitcoin’s market capitalization at $2.33 trillion. Okay, our all-time high remains at a little over 123,000, so we’re still about 5% down from all-time highs, a little less. Okay, for those of you that are sick of the time us humans created up until this point, and you want to deal in Bitcoin block time, I am broadcasting at Bitcoin block height 906,584. The title for today, the Fed and Treasury are getting remarried. Love is in the air. The honeymoon is inflation, and the wedding gift is sweet, cold, hard sats. It’s Bitcoin. They’re saying the quiet part out loud. So without further ado, Let’s go. Let’s go. OK. Actually, I’m going to start with this one. For those that didn’t see the news, we had the genius act pass into law. A little bit of theatrics, a little bit of drama, a little bit of emotional volatility. But that’s what us humans do. That’s what we’re comprised of. That’s why not everything goes up in a straight line. It’s a little bit of a roller coaster. Live a little. Every single day you wake up, you’re dying. Remind yourself that you’re alive and not forever. And so it was a weird week, crypto week, as Trump called it. Beautiful crypto week, the best crypto week that’s ever happened in Washington. But, um, at the end of it, we got the genius act. Now as a Bitcoiner, I mean, the genius act has not that much to do with Bitcoin directly, but it does, in my opinion, have a lot to do with the fiscal situation and how the United States thinks about Bitcoin holistically, okay? I’m not the best at the English language. I’m a college dropout. But follow me here. The Genius Act, it’s a stablecoin bill. I don’t own any stablecoins. I’m an American. I don’t need stablecoins, okay? I own Bitcoin. I don’t own any US dollars. I don’t want any US dollars. It doesn’t matter what token they are. I don’t care. I don’t want it. So the genius act has nothing to do with Bitcoin directly, indirectly, holistically. I think it has a lot to do. So first and foremost, Let’s play a clip from the man, the myth, the legend, our boy, frequent guest on this show, although he doesn’t know it, Treasury Secretary Scott Besson. Let’s hear.
Jack Mallers [00:03:54]: Today marks a seminal moment for digital assets and global dollar dominance with President Trump signing the Genius Act into law. This bill provides the fast growing stable coin market with the regulatory clarity it needs to grow into a trillion dollar industry. Stablecoins represent a revolution in digital finance. The dollar now has an internet-native payment rail that is fast, frictionless, and free of middlemen. This groundbreaking technology will buttress the dollar’s status as a global reserve currency, expand access to the dollar economy for billions across the globe, and lead to a surge in demand for U.S. Treasuries, which backs stablecoins. The Genius Act is a win-win-win for everyone involved, stablecoin users, stablecoin issuers, and the U.S. Treasury Department. I want to thank President Trump for his visionary leadership in shepherding this bill into law and Congress for rapidly advancing this critical legislation. By expanding financial freedom and reinforcing dollar dominance, stable coins will play a critical role in making America great again. Boring.
Jack Mallers [00:05:14]: Man. Besant just put me to sleep there, but Let me make it exciting. Now, here’s what I think matters for us Bitcoiners. Again, listen. Also, I don’t want to belittle the point that I have a lot of customers that love stable coins. My business supports stable coins. In particular, we support USDT. We support Tether. Again, I’m an American. I live in Chicago. I don’t need access to the dollar. I was born with access to the dollar. But my customers in Africa, my customers in Latin America, they love this access to the US dollar. And I get it, right? Is a stable coin a shit coin? Sure. But so is the dollar so is the euro so is the pound and I support those currencies for myself and my other customers in the greater west So the reality is we still live in a fiat world and in a lot of the emerging markets. They like the stable coin Fair enough. It’s been an incredible innovation. I mean for those of you that don’t know I’m really close with tether. They’re my co-founders in my other company called 21 I think they’re geniuses and they invented stable coin so I’m not dismissing stable coins as an invention. I’m not dismissing stable coins for everyone. For me, for me, Papi El Chulo Jack, empty closet man, I don’t do dollars. I don’t do fiat. I don’t do stable coins. Why is this relevant to me? How should we be thinking about this on the Jack Mallers show? Well, I’m moving my big head out of the way here. In the green, what you’re looking at is tether. Market cap and in the orange what you’re looking at is Bitcoin. Okay. Why is this interesting? Well, if you guys can see they’re fairly correlated Isn’t that interesting? Yes, stable coins are a way to export the dollar to those that don’t have good access to it But they’re also the reserve trading pair against Bitcoin is a global liquid commodity. Okay. Bitcoin is rare and then it’s accessible to everyone. It knows no borders. It has no nation state. It has no central bank. It’s unique default trading pair. The currency pair that does the most volume against this asset class is USDT is tether. Okay. They grow together. They are very correlated. When Bitcoin grows, Tether has to grow. Say that one more time. When Bitcoin grows, Tether has to grow. There is a direct relationship where if Bitcoin is going to be $20 trillion, then take whatever the ratio is today and multiply it by 10 for Tether. Stable coin market cap has always ranged between two and a half to ten The the bitcoins been two and a half times the size to ten times the size of the stable coin market cap Okay, so when Scott Besson says I think stable coins can grow to three point seven trillion If we take the upper bound of that range for Bitcoin, he’s therefore saying, without explicitly saying it, I think Bitcoin can go to $37 trillion in market cap, which, by the way, is more than a 10x. That would put Bitcoin at over a million dollars per coin. Are you guys following? So, for some reason, it’s not very intuitive. that if they want to grow the stablecoin issuance, they grow the Bitcoin price. I’m telling you right now, Americans don’t need a stablecoin. You want to grow rapidly the stablecoin issuance? Grow the Bitcoin price. That’s how you do it. And I will show you why, in my opinion, that’s exactly what they’re doing. Next, now this gets pretty interesting. We have Kevin Warsh touts regime change at Fed and calls for partnerships with the Treasury. So the title of this, again, the Fed and the Treasury are getting remarried, okay? We’ve talked a lot about on this show about the fact that the fed is supposed to be an independent private bank but we’re living in a period of fiscal dominance the government is in charge the treasury’s in charge because the debt is all that matters all of the shenanigans that the fed is a separate entity is done, it doesn’t matter, rates don’t matter, rates have been stuck high, fastest rate hike ever, and Bitcoin’s been ripping to all-time highs. We are living through a new regime change. I’ve said it for years now. The post-World War II monetary regime is over. It’s dead. Finito, goodbye. We are moving back towards neutral reserve assets to store our time and energy as humans. Bitcoin will play a pivotal role until it plays the only role. I promise you that. And they’re starting to say the quiet part out loud. Let’s hear what Mr. Warsh said on CNBC on the topic. I mean, we’re getting to the part, guys. Well, they’ll literally just say out loud what they’re about to do. I find it difficult to argue with people about these topics because it’s like, bro, I don’t want to argue with you. He’s literally saying it on CNBC. These boomer economists that want to argue with me about shit. It’s like, dude, I’m not arguing you’ve been wrong for 15 straight years and now you want to argue for a 16th straight year with me But he’s saying it on television
Jack Mallers [00:11:05]: Our next guest is here and he has been widely mentioned as someone who could be leading the Fed Joining us right now is Kevin war. She was a member of the Federal Board of Governors from 2006 to 2011 Frequent guest here on squawk box and Kevin we are very glad to have you here with us this morning
Jack Mallers [00:11:22]: Becky, it’s great to be with you. It’s a slow, lazy summer day on a Thursday. I don’t know what could possibly be on your mind.
Jack Mallers [00:11:29]: By the way, we booked you before a lot of the blow-up that came yesterday with what was happening. But you are here, and you are somebody who has been mentioned on the short list for people who would be headed to the Fed. We’ve thought that for a long time. We’ve had people like Ken Langone, who was here earlier this week, talking about how he is a huge fan of yours. I just wonder what you’re thinking right now where you see things.
Jack Mallers [00:11:51]: Well, I think Ken’s a great man. He’s an American hero. I came to know him when I started to work for Druckenmiller about 15 years ago. And I talked to him all the time, and I usually ask him what’s going on in the real economy. Almost everything he touches turns to gold. And over the last six months, every month, he would just sound a little bit more positive about what was happening. He told me something’s happening out there that’s different. And I said to him once, I might sound a little like Joe, I said, why aren’t you more supportive of the president then? This is because of policy. And I think, listen, my sense is that we’re at the forefront. We’re at a transformational moment in US economic history. This is as George Shultz told me before he passed a hinge point in history. I think the president’s language is this could be a golden age. And frankly, I think they all could be right. Good policies could advance this U.S. economy. What we call AI in a couple of years, we’ll just call business. And AI is going to make almost everything cost less. And the U.S. can be a big winner. That’s my argument to Ken. I think Ken’s now come on to the president’s, to the president’s side. That’s
Jack Mallers [00:12:58]: what he said when he was here.
Jack Mallers [00:12:59]: And it’s a hugely exciting moment. If I were to step back for a minute, if I were the president, what I’d be worried about is a central bank that doesn’t see any of that, a central bank that is stuck with models from 1978, governance from a prior period. and don’t recognize we could be at the front end of a productivity boom. And if I were the president, I’d be worried that they might not see it. And they might think economic growth is somehow going to be inflationary. I think we’re probably in the early innings of a structural decline in prices. Ken sees it on the front lines of real businesses. And I think if you look over the period of the next year or two, it’s a pretty special moment.
Jack Mallers [00:13:38]: We’ve been talking today.
Jack Mallers [00:13:42]: Guys did you hear what I just heard? First of all, CNBC is just flashing calls for Fed regime change in the largest letters on the screen in your face. The guy didn’t even say that explicitly. They’re just putting it in your face. And then he goes on to say, well, yeah, you know, everything is going to be perfect if the Fed stops getting in everyone’s way. If the fed starts listening to the president if the fed gets on board what? Insane this is the separate non-political Private bank Let me just keep playing a little bit longer
Jack Mallers [00:14:36]: about how how far the Fed should forecast, how predictive they should be, if they should be dependent on data that’s coming in. And there’s one school of thought that says it would be better to have somebody who sees this and can anticipate in advance. That’s what great money managers do. But great money managers don’t always get it right either. We spoke earlier with Nick Timmeros, who made the point that, look, sometimes it’s better to wait so that if there is a mistake, you can recalibrate much more quickly. So
Jack Mallers [00:15:08]: I heard a little bit about that interview and I heard Nick say something like, well, what we need is continuity. My goodness, I think that’s the last thing that we need. The broad conduct of monetary policy has been broken for quite a long time. The central bank that sits there today is radically different than the central bank I joined in 2006. I don’t think we need policy continuity that brought about the greatest mistake in macroeconomic policy in 45 years that divided the country, that caused a surge in inflation. I don’t think we need continuity when the central bank doesn’t have credibility. Last September, Becky, as you’ll recall, the Fed cut interest rates 100 basis points. 50 basis points before the election, 50 basis points after. Inflation was 50% higher then than it is now. And what did the bond market do when they cut rates? Long rates went up 75 basis points. That’s a credibility crisis. So listen, this isn’t the first time you’ve heard me in the last decade say we need regime change at the Fed. It’s not just about a person. It’s about an approach to economics. It’s about approach to what they’re doing. And I’m troubled when I see them moving the goalposts. It is very puzzling to me, Becky, how you could think that we should do emergency rate cuts last September and now all of a sudden you stand there like a hawk. That’s not good for the institution. I don’t think it’s good for the economy to be changing the goalposts like that.
Jack Mallers [00:16:36]: Let me ask you, as somebody who’s been there before, how much power slash influence the chair ultimately has if you’re in a room with 11 other voting individuals who may not agree with that person. Historically, there’s been sort of an alignment. Everybody’s tried, I think, to come to a unanimity on most things. And whether you think that the Fed, I don’t know if in history there have been times where there’s been complete and utter distinctions between views on the Fed and what it ultimately means.
Jack Mallers [00:17:15]: So there have been exactly those times. Paul Volcker, when he came in, not only have 12 years of experience in government and six at the Fed, I’ve got some knowledge of Fed history. Paul Volcker came in and said, we don’t need continuity, we need regime change. And it was that regime change that brought inflation back and reestablished the Fed as this beacon of credibility. But the president at the time put in some members under the Volcker team afterwards that forced what some thought would be a coup. It hasn’t always been pretty. In fact, my own view, Andrew, is what the Fed needs is more robust discussion of ideas. Less group think. I don’t like it that everyone’s following the same models. To give you just one simple example, the dominant models at the Fed, which might have been the best models there were in 1978, what do they think, Andrew? They think inflation comes if the economy runs too hot and workers get paid too much. That’s not my view. I think we could use a new idea, a new theory of inflation, so let me practice one for you. Okay. Inflation happens when the government prints too much, spends too much, and lives too well.
Jack Mallers [00:18:24]: That theory… Bro.
Jack Mallers [00:18:33]: Let me rewind that part. I know this is a long clip. Don’t let me lose you guys. Listen to
Jack Mallers [00:18:42]: Inflation, so let me practice. That’s not my view. I think we could use a new idea, a new theory of inflation, so let me practice one for you. Inflation happens when the government prints too much, spends too much, and lives too well. That theory, that theory that money has something to do with monetary policy, is nowhere in the central thinking of the Fed. I think if those ideas were imported into the discussion, we could have a good family fight about
Jack Mallers [00:19:09]: it. You don’t get to decide how much is spent. That’s up to Congress. the president has to sign off on those things. Would you support them? And I guess the biggest question, Kevin, is people are wondering, the next Fed chairman Is he going to be independent? Is he going to say, and I say he because right now the candidates that we’re hearing are all men, is he going to be independent? Is he going to do what he thinks is right despite what the White House may advise or think, what the administration thinks?
Jack Mallers [00:19:39]: So in a word, yes. So I’ve strongly believed for 20 years and history tells us that the independent operations in the conduct of monetary policy is essential. But that doesn’t mean the Fed is independent in everything else it does. In fact, if I look at the track record of the Powell Fed over the last six or seven years, they’ve tried to say, how dare you be critical of us? We’re independent in everything. Well, that’s nonsense. They wandered into climate change, a subject upon which they have no comparative advantage. With a change of business administration, they said, just kidding. They wandered into another political area of which they were never assigned, diversity, equity, and inclusion. They changed the remit that Congress gave them about whether they were in the business of full employment or full inclusive employment. This change in their definition in 2020 is one of the key reasons why we had the great mistake, the great inflation. And on spending, Becky, during the period of the last administration, what did they say to Congress? Spend, spend, spend. So like you, I think they should stay in their lane. But it’s very strange to me that they’re asymmetric. Spend a bunch of money when it’s popular and now if you get asked about fence spending constraint What does the leadership at the Fed say? Oh, no, that’s not about us You should establish what the rules of the road are and stick with it regardless of the administration. I think the Bro
Jack Mallers [00:21:10]: What Did you guys just hear what I heard I It’s not even like an insightful take anymore on the show for me to say it’s going to be a monetary regime change. We’re living in fiscal dominance. The Fed has to support the U.S. government in its debt and in the Treasury. They’re literally doing a special on CNBC on it. We just heard, for one, the Fed has no credibility. Direct quote. Don’t trust the Fed. Don’t take them seriously. Their credibility is worthless. Direct quote. Two, the Fed isn’t fully independent. Direct quote. This is not a Bitcoiner mincing words and being dramatic. Direct quote. What? Oh, the Fed is only independent in like one thing. Let’s get real. It’s not actually independent. It serves to support the government in a partnership. Bro, what? And then the third? Inflation is caused by printing money. Yeah, I know. Did you just propose that as a new idea, jackass? That’s not a new idea. I’ve been tweeting that for 13 years, and people have been writing that for way longer than I’ve been alive. I’m sorry Mr. Kevin Warsh, you seem like a great honest man, but that’s not a new idea my friend. I hate to burst that bubble of yours, but it’s part of my job here on the Jack Mallers Show. The notion that when you guys print money, it causes the prices of things and the money you print to go up, that’s not a new idea. I’m gonna classify that as a rather old idea that you’re just starting to say now. What? No credibility, no independence, printing money causes inflation. And you got, and I’m sitting here on Twitter arguing with boomer economists that we’re not living through a monetary regime change, that we’re not living through fiscal dominance, that we are not living through a fourth turning, the end of an old monetary era and the start of a new one. And you guys are going to, someone’s going to look me in the eye and say, Bitcoin doesn’t matter. It has no intrinsic value. It’s not going to play a role in the future. I, like, are you guys pulling a prank on me? Are we being serious? Someone get me a, they’re saying the quiet part out loud t-shirt. We gotta do it, let’s get some merch. Someone call Dylan, someone call Dylan, we need some merch. Okay, next. This morning, okay, so just to rewind really quick, The genius act passes into law. But really, stable coins grow with Bitcoin. If stable coins are going to grow, that means Bitcoin is going to grow. That’s just, that’s the point, guys. That’s the point. Keep that in mind. Don’t let that get past your brain. We got big brains here on the Jack Mallers show. We soak it all in. Now we have Kevin Warsh, who’s one of the leaders to become the next Fed Chair. It’s either this guy or Besant, according to all the betting polls. He literally comes on CNBC in your face and says, the Fed has no credibility, the Fed’s not independent, inflation is caused by money printing, and we need to enter a new monetary regime. Okay. Then I wake up this morning to, guess what? They’re going after Jerome Powell for the renovation on the reserve building. Just last episode, I said, nobody actually gives a shit about this guy’s new building he’s building. Who cares? Two and a half billion dollars is a large number to a normal median family in the United States. It’s not a large number to the US government. They spend trillions a year. Not spent, they lose. They lose trillions a year. Two and a half billion is a rounding error. But what did I say on this show? They’re going to use this to go after this guy. They’re going to use this to slam this guy. What do we wake up to? Jerome Powell has been referred to the Department of Justice for criminal charges for perjury related to his two and a half billion dollar renovation to the Federal Reserve Building. Guys, two and a half billion dollars, I think that’s what the Chicago Bears are gonna spend on their new stadium. It’s really not that big of a deal relative to how much goddamn money we print and waste on everything else. It’s only going to be used to slam this guy. Let’s keep going.
Jack Mallers [00:26:30]: This
Jack Mallers [00:26:31]: was Scott Bessent this morning. This morning.
Jack Mallers [00:26:39]: Let’s listen. The important thing here is the quality
Jack Mallers [00:26:48]: of the deal, not the timing of the deals. And President Trump has created maximum leverage, it’s only he can do. And what we are seeing is these imbalances built up over 20, 30, 40 years, and we are more concerned with high quality deals than getting these deals done by August 1st. Our trading partners were told that the rates could boomerang back toward the April 2nd levels. We can continue talking then, but again, we’re proceeding apace with the negotiations, but we’re not gonna rush. for the sake of doing deals. The important thing here is the quality of the deal.
Jack Mallers [00:27:35]: I just played the wrong video. God damn it. I’m not a podcaster. Bear with me here. That’s relevant, too. They keep postponing the date of all their trade deals. We’ve been in a trade war since the guy got inaugurated, seemingly never going to end. The market thinks Trump’s just going to chicken out. But bear with me here. I wanted to play a different video because Besant commented on Powell this morning. And I played the wrong video. But that’s okay. That’s okay. You guys don’t join this show to tune in to a professional podcaster. It’s not why you’re here. You’re here. Actually, I don’t have an answer for why you’re here. Why you’re here beats me. But I know why you’re not here. You’re not here. Well, you are here. I know you’re, whatever. I found it. Here we go.
Jack Mallers [00:28:47]: and whether… Look, Joe, I think that what we need to do is examine the entire Federal Reserve institution and whether they have been successful. I’m speaking, actually, I’m going to be in the building this evening. There is a regulatory conference that begins tomorrow. I’m the keynote speaker tonight talking about regulation. the Fed as well, deals with monetary policy, regulations, financial stability. And again, I think that we should think, has the organization succeeded in its mission? If this were the FAA, and we were having this many mistakes, we would go back and look at why has this happened? I mean, look at the, as you said, at the top of this broadcast, there was fear mongering over tariffs, and thus far, we have seen very little, if any, inflation. We’ve had great inflation numbers. I think this idea of them not being able to break out of a certain mindset, all these PhDs over there, I don’t know what they do. I don’t know what they do. This is like universal basic income for academic economists.
Jack Mallers [00:30:18]: OK. So we have the lead candidate for Fed chair outside of our own Treasury Secretary on CNBC slamming the Fed’s credibility, slamming its independence, saying it needs to work in partnership with the US government and that we need a regime change. Then the next segment is the US Secretary of the Treasury himself saying, what are all those Supposedly smart economist PhD whizzy-whosies over there doing because clearly they’re doing fuck-all It’s almost a direct quote if you jackify his words, and you put it in my own language. That’s basically what he said What are you guys doing besides fuck-all nothing? I need to go investigate your work and potentially change everything I don’t know how else to say this guys The guy who manages the finances of the U.S. government. If the U.S. government were a company, the CFO of the U.S. government said, I need to go inspect the Federal Reserve because they are doing fuck all. This is huge news. Massive, massive news. Next. Now, this is courtesy of Luke Grumman. Now, the actual source of this is FederalReserve.gov, but Luke Grumman found this. The question is this. Has the Fed and the U.S. government ever gotten married before? Well, the title of this show is The Fed and Treasury Are Getting Remarried. Remarried implies that they’ve been married before. What happened the last time they got married. They got married to help finance around the World Wars. Guys, it’s all starting to click. It’s all starting to click like one big story. We’re in the post-World War monetary era, this fiat era. This era’s coming to an end. It’s run its course. We’re out of room. We’re out of debt to grow. We’re out of purchasers of our debt. We’re going back to neutral reserve currency status. We’re going to Bitcoin. It’s the story of humanity, you know. It’s engineering a better world. That’s what we did. We got our hands dirty. We built Bitcoin, and that’s the start of a new chapter. Let’s look at the old chapter. The US government and the Fed got married, and the Fed’s balance sheet grew ten times. Look at this chart. Ten times. And it grew largely in… Drum roll please. T-bills. The things that stable coins buy. Guys. And Besant just said he’s going to issue the debt at the front end. He’s going to live at the front end. He can’t get the 10-year rates down. That’s why they want the Fed rates to come lower. They need, they want lower interest payments on the debt. They want to be giving stable coins. They don’t want to be paying stable coin issuers four and a half percent, guys. The last time the Fed and the government got married. K-I-S-S-I-N-G. Two lovebirds sitting in a tree. K-I-S-S-I-N-G. It’s the Fed and the U.S. Treasury. The Fed’s balance sheet grew ten times.
Jack Mallers [00:34:06]: Who’s the purchaser of last resort? When it’s all said and done, and China doesn’t want your debt, American civilians don’t want your debt, Russia doesn’t want your debt, banks don’t want your debt, hedge funds don’t want your debt, who’s the buyer of last resort? The Fed. The Fed. So, my thesis is this. Stablecoin growth is gonna come via Bitcoin growth. Bitcoin grows, stablecoins grow. So therefore, the US government has an incentive to grow Bitcoin. It’s really that simple, guys. I actually wrote my thesis down. Well, first of all we take a step back. We know that the U.S. cannot raise rates, and they cannot cut spending. We know that for a fact, okay? That is our baseline. We tried to cut spending with Doge, with Elon. How’d that go? That went so bad, Elon started his own political party. I mean, there’s bad, and then there’s how bad that went. this man literally is gonna run for president out of some random political party he’s there. I don’t even know what it’s called, like America, American. America who knows So the point is we can’t raise rates anymore. We can’t cut our spending so we are trapped we are trapped now The next logical step is we then need to devalue the dollar It’s the only way out and that’s what I’ve been saying on this show over and over and over and over again We have to print however The problem is, on the other side of printing, is inflation. And so how can you print into base without sparking obvious inflation? Stablecoins. This is where modern inflation sinks. This is my idea. Or at least this is my interpretation of everything that’s happening. Sometimes I’m wrong, sometimes I’m right. Historically, not to brag, I’ve been a little bit more right than I’ve been wrong. It’s just my idea. Well, maybe we’ll come back to this and say, man, what a dumb idea. You idiot. Or maybe we’ll be right. Who knows? Stable coins are like tokenized U S dollar liquidity. Okay. They’re backed by these T bills, these things that we’ve been referencing. They unlock three and a half trillion dollars of dormant reserves at the fed. We mentioned that last episode. We’ll bring it up again. That’s a COVID level of liquidity, by the way. That’s one COVID. I’ve done a little bit of math to think that there’s about ten trillion dollars of liquidity coming from all of these special projects You’ve got the supplemental leverage ratio. They’ve got Fannie Mae Freddie Mac. You’ve got genius act and stable coins You’ve got seven trillion dollars in money market funds So inevitably whenever rates start to come down to wherever Trump wants them to come you’ve got that capital So, you know, I think we’ve got Three covids in us over the next 12 months or so So this whole genius act bill, whatever it’s called That’s it’s about one kovat in size One whole kovat put that into perspective.
Jack Mallers [00:37:35]: Okay
Jack Mallers [00:37:35]: It’s three and a half trillion in dormant reserves says this is secular Lee inflationary unless All of this liquidity gets absorbed by a non-consumption asset. This is what I’ve been saying, guys. Debase the dollar against what? What are you going to debase it against? I tell you what’s a really bad idea. Do not debase the dollar against housing. Bad idea. Because if housing starts to rip 60% year over year, that’s bad. A lot of people are going to be really pissed because they don’t want to be homeless. Here’s another one. Don’t debase the dollar against eggs. Bad idea because people need to eat or else they’ll be malnourished, starve and die. So a bad idea would be debasing the dollar against eggs. Good idea. My recommendation, debase it against Bitcoin and gold. Are you guys following me now? That’s the stable coin idea. That’s it. Because the last logical conclusion I come to is that Bitcoin is the sink for stable coin liquidity. So stable coin is the sink for fiat inflation liquidity, and Bitcoin is the sink for stable coin liquidity. Do you understand? If you want stable coins to grow, Bitcoin grows. You want to debase the dollar against something? Bitcoin. Put it to you this way, the United States sends Bitcoin to $500,000 a coin, that’s 5X from here. Stable coins then have to 5X in growth, at least. That’s five times the amount of demand for US debt. Guys. This is, I’m telling you, this is it. I’m telling you, I feel it in my bones. I really do. So then my next few slides are to support this idea. For one, the president and his family just bought $2 billion worth of Bitcoin. This is the Trump media company. Just bought $2 billion worth of Bitcoin. Next, huge news. Trump opens US retirement market to crypto investments. Guys, If I were to execute this plan, the one thing I would need for it to work is for everyone to own as much gold and bitcoin as possible. I really hope I’m articulating this well enough. If the goal is to debase the dollar, which grows nominal GDP, which devalues the debt to GDP, that’s the whole point. We cannot have debt to GDP at 130%. That number’s got to come down. It comes down by printing money, by debasing the dollar. You can debase the dollar against gold, against Bitcoin. How do you get golden Bitcoin to everybody? Well, one way is to open up everyone’s retirement account and put Bitcoin and gold in it. The quiet part is being said out loud. We’re going to use stable coins to absorb liquidity and inflation. Stable coins funnel to Bitcoin. Stable coins are going to grow because we’re going to grow Bitcoin. We’re going to grow Bitcoin by taking dead capital, three and a half trillion at the Fed, U.S. retirement accounts. We’re going to make sure that people get long this thing. I tell you this, guys. Do you want to know the community of humans that aren’t mad when the dollar gets debased? Us. Me. I’ve said on this show, debase the dollar all you want. Print all you want. I don’t care because I own Bitcoin. That’s the point. How do you debase the dollar and get re-elected? Put Bitcoin and gold in everyone’s retirement account and send that shit. And by sending that shit, I don’t mean Bitcoin to a million. I mean the dollar to fucking zero. Bitcoin’s gonna go where it needs to go. Bitcoin doesn’t need your help. They need to drive the dollar down. Here’s a snippet from the article. Donald Trump is preparing to open the nine trillion. I mean, we’re just throwing around these trillion dollar numbers Like, what the hell? Oh, three and a half trillion there, seven trillion there. Oh, whoa, what’s that? Is it a bird, it’s a plane? No, it’s nine trillion dollars of U.S. retirement money. Jesus Donald Trump is preparing to open the nine trillion dollar US retirement market to cryptocurrency Investments gold and private equity in a move that would spur a radical shift in the way American savings are managed Trump is expected to sign an executive order as soon as this week that would open up 401k plans to alternative investments beyond traditional stocks and bonds According to three people guys What have we said on the show stocks are gonna go up in dollar terms But everything goes up in dollar terms if you’ve measured stocks in gold terms. You’ve already lived through a great depression Stocks are gonna go up in dollar terms But you’re still not gonna be able to pay rent you’re still gonna be getting less groceries You’re still not gonna be able to fill up your gas tank They’re gonna go down in Bitcoin terms. They’re gonna get murdered in Bitcoin terms and and the United States is literally shorting stocks and bonds and longing Bitcoin and gold. It’s in a Financial Times article. Wow, sorry. Got a lot of energy today. It’s just really getting me going. The quiet part could not be more loud. These investments would run a broad spectrum of asset classes from digital assets to metals and funds focused on corporate takeovers, private loans, and infrastructure deals. They’re finding liquidity to do what? Buy neutral reserve assets, Bitcoin and gold, fund America reshoring all their shit. So these private equity deals are probably going to be building all the factories and all the rare earths and all the things we’ve been talking about to reshor America. So what did I say? They’re going to have to print the money and find the liquidity to reshor. The dollar’s got to go down, Bitcoin’s got to go to the moon, and we’ve got to start making our own stuff again. They’re literally taking everyone’s retirement account and just reordering capital flows. Short stocks, short bonds, long Bitcoin, long gold. The executive order would instruct Washington regulatory agencies to investigate the remaining hurdles needed to follow for such an alternative investment to be included professionally managed funds used by 401k savers. This is the biggest part. Direct quote, President Trump is committed to restoring prosperity for everyday Americans and safeguarding their economic future. Safeguarding their economic future is dumping stocks, dumping bonds, buying gold and buying Bitcoin. We made it. It’s that Drake song. We made it. Crazy. The president is saying, yo, I need to protect your financial future. Let me get you some Bitcoin. Guys, and there’s bearish people out there that think this thing has no intrinsic value and is not gonna be part of our future. Do you guys read anything on the internet or watch CNBC or like literally? Do you read mainstream media? Do you watch the television? Do you wake up and see the sun? It’s everywhere. No decision should be deemed official, however, unless they come from President Trump. Onwards. Then, the next day, After that FT article, President Trump tweets out the greatest Bitcoin explanation of all time. I’m not going to play the video. I’ve played too many videos. We’re running up on time here. But you guys should watch it. So the Trump family buys $2 billion worth of Bitcoin. Then Trump says, I got to make sure everyone’s economically protected for their future and they’re ready for this new monetary era so that I can get reelected. So I’m going to dump their stocks, dump their bonds and buy a bunch of Bitcoin. Then he goes out and tweets that Bitcoin is amazing. A six and a half minute video on the greatest Bitcoin explainer of all time. I mean, listen, I’m not everyone’s flavor of tea. Sometimes people understand what I’m trying to say, sometimes people don’t. I hope you guys are hearing, picking up what I’m putting down, okay? I don’t know how much more clear I can make this. The whole genius act thing, stable coins are the new way to finance the government, but they grow as Bitcoin grows. One way to grow stable coins is to grow Bitcoin. One way to debase the dollar is to grow Bitcoin. One way to get out of the post-World War monetary regime change is to grow Bitcoin. One way to solve the Fed and the Treasury’s problem of getting remarried is to grow bitcoin. It could not be more obvious. And this goes back to bitcoin doesn’t need you, you need bitcoin. What do I think about the United States interest in bitcoin? Does it make me ashamed to be a bitcoiner? Bitcoin doesn’t give a shit about the United States. It doesn’t even know who the United States is. I know that for a fact, and you could too. You can go on github.com and look at the code. Nowhere in the code does it say the United States, not one time. But the United States needs Bitcoin. Sorry, not sorry. So we go on. I wanted to bring your guys’ attention. Again, this is an oldish article, two weeks old, but here we go. Russian firms use netting, gold, and crypto to trans-border payments, watchdog chief tells Putin. Summary. Crypto’s small but growing part of Russia’s $192 billion oil trade. Crypto used to smooth conversion of won and rupees to rubles. I mean, that’s like literally one of those services we provide at Strike. Global payments using a neutral reserve digital value that moves over the internet. Russian oil companies have used tether. So again, the whole notion that like stable coins as an industry, there’s no industry. There’s tether. Let’s be honest. Russian oil companies have used tether, Bitcoin, and ether. Russia is using cryptocurrencies in its oil trade with China and India to skirt Western sanctions according to four sources direct knowledge of the matter. While Russia has publicly encouraged the use of crypto and last summer passed the law to allow digital currency payments in international trade, its use in the country’s oil trade has not previously been reported. Again, monetary regime change, neutral reserve assets, Bitcoin, Bitcoin, Bitcoin, Bitcoin. We’re hearing it in Congress, we’re hearing it from the President, we’re hearing it from the Treasury, we’re hearing it from the future of the Federal Reserve. Russia, you’d think, man, if we’re doing a new monetary regime, then surely countries are dumping Treasuries, dumping US debt, and using things like gold and Bitcoin. Uh, yeah. Here, let me know if you want me to link you to this article. It was just reported on Reuters. Now, the dumping treasuries part? Yeah, that’s happening too. Shouldn’t it be new to frequent listeners of the show? But why not revisit it? It’s a good reminder that US debt is a pile of crap. The pink line? That’s China. I’m a college dropout, so you know, I’m limited in my capabilities according to these seasoned economists that seem to know better than all of us Bitcoiners, although they’ve been wrong for over a decade straight. What direction is this pink line going in? I don’t know. I’d wager to say that is down. China is explicitly dumping US treasuries. Now, the UK, acting as irrational as ever, no surprise, buying a bunch of debt, but no one else really matters. We’re talking about China. Okay, one of the worst things United States did whether it was a secret ingenious move to expedite this chapter or it was a terrible mistake was weaponized the US dollar against Russia. But even before that look when China started to dump it wasn’t in the Russia sanction area wasn’t in covid era. They’ve been dumping for a while. They haven’t added on net Treasury since 2014 since this top up here. So what’s another sign that it’s a monetary regime change? Well, the old or some can argue current monetary regime is being literally dumped at market. It looks like a shit coin. Next, Russian official touts cheap gas-fired power for domestic AI in crypto mining. These people are new to the industry. They keep using the word crypto. They should just be explicit and say Bitcoin. But again, Russia is mining Bitcoin. China is mining Bitcoin. They are using Bitcoin to settle trade. And the most important trade to settle, the commodity that really matters when it comes to consumption is what? Oil. Oil, oil, oil. So they’re mining Bitcoin and they’re using Bitcoin to settle oil. I don’t know, does that scream monetary regime change to you guys? It does for me. And then, just to end the show out, party like it’s 1999, Goldman Sachs non-profitable tech index is up 66% since hitting its lows in April. Okay, this is an index that shows how many businesses today are not even making money,
Jack Mallers [00:52:47]: Again, to me, profitability is a moral imperative before it’s an economic one, because if money is our time and energy in an abstracted form, it is the market good that represents value. Right? Being profitable means you are creating more value than you are consuming. Therefore, in an economic sense, it is making the world a better place. I’m gonna say that again. Being profitable is making the world a better place because you are technically, in the economic sense, producing more value for the world than you are consuming from the world. Unprofitable companies should not exist. In a free market, they should go bankrupt. And it’s not personal, not trying to be a dick. It’s economic reality. You should not be allowed to persist. It’s a form of Darwinism. If you aren’t meant to be alive, you shouldn’t be alive. Create a company that produces more value for the world than it consumes from the world, and you can live for as long as you want. If you are taking and consuming and sucking more value out of the world than you are producing into the world, it’s a net negative for humanity. Now, companies can do what they want and they can be unprofitable for a quarter, for a year, for a decade, as long as they’re financing themselves on their own balance sheet and there’s no bailouts and there’s no favoritism. But in perpetuity, unprofitable companies Should go extinct. No shit. So this is unbelievable, irrational behavior that we are experiencing. Again, to me, this smells like the end of a monetary era where we’re talking about the mag seven dollar and US debt. And literally the president of the United States wants to go into your 401k and dump these pieces of shit, these unprofitable companies that are trading at irrational multiples that don’t make any sense and buy Bitcoin. And the last one. This one’s for, you know, all my mainstream normie friends out there. This was going super viral. These, for my non-US listeners, American football here, these guys are brothers, okay? On the left, his name is JJ. On the right, his name is TJ, okay? And this was going viral because JJ said, man, my little brother tries to make me pay for another dinner. I’m going to kick his butt. He’s making way more money than me. But as a Bitcoiner, what a perfect image to visualize inflation. 12 years this guy made as much as his little brother’s gonna make in three years. And so CBS and ESPN and all of the media outlets were like, man, you know, pays to be the younger brother sometimes. Now, I made a version of this. Now, granted, it’s not as aesthetically pleasing, because not only am I not a podcaster, but I’m not a designer. If each of those numbers were viewed in Bitcoin at the time of contract signing, the older brother would have gotten a Satoshi stack for his 12 years in the NFL, and the younger brother would be getting a measly 1,000 Bitcoin. This is inflation, guys. In your life, if you live on Bitcoin, everything gets cheaper. If you live in fiat, everything gets more expensive. If he took his 12 years of hard work and sat in dollars, yes, he’s getting utterly and completely wrecked. His younger brother is going to be getting paid more dollars because over the 12 years, the dollar has gotten worthless. How do I know that? Look at this. The dollar has gone from being worth 1.3 million bitcoin, more, JJ Watt would own more bitcoin than Satoshi Nakamoto, to being worth 1,000 bitcoin. Inflation in a nutshell, monetary regime change. What did I call this episode? I thought it was one of my best. The Fed and Treasury are getting remarried. The honeymoon is inflation. The wedding gift is Bitcoin. That’s a wrap. And let’s do some Q&A. Let’s do some Q&A. I started the show a little late, so we can end it a little late. But I like to keep these tight, because nobody likes a two-hour podcast. So let’s do 10 minutes or so. 10 minutes or so. Keep it sharp. We’ll keep it quick. Okay. Macro, can you explain how Bitcoin is going to replace fiat?
Jack Mallers [00:57:50]: mean, in 30 seconds? No, I can’t do that. Here’s how I’ll answer that. At the end of the day, money is the place for us to store value. Meaning I don’t want to repeat myself too much. You know I do so much media guys Sometimes I can’t tell if people listening are like man this motherfucker says the same shit over and over and over again or if it’s enlightening and You know sometimes people like to hear the same thing two three four times to really get it in their brain so you know I’d be curious your feedback on that in the comments, but listen money is the thing that you acquire and not to eat it or fly it or drive it, right? Not to text with it like an iPhone. Not to wash your body with it like soap. It’s the thing you acquire to save it and then later exchange it for the things that you want in your life. So that’s the very one unique piece of money. Let me say this. If I grew apples and my friend grew bananas, and I wanted some of his bananas, but he didn’t want my apples. He wanted oranges. What I could do is I can grow my apples and exchange them for oranges, and then use the oranges to acquire his bananas. Did that make sense? In that economic instance, I used oranges as money. And someone could say, no, oranges aren’t money. They’re used to make orange juice. No, but in that instance, I used oranges as money because I acquired the orange not to consume the orange. I acquired the orange to later exchange the orange. Money is the market good that you acquire not to consume, but to save it and later exchange it for the things you need. So therefore, money represents a way for us humans to take our time, our energy, effort, our labor and exchange. Our value and so when is Bitcoin going to replace fiat? In my opinion Bitcoin is going to replace fiat when enough of the world’s cash balance enough of the world’s value of the world’s time and energy when people contribute Value to the world and they need to put it in a place to store for a second Until they want lunch until they want a house until they want to go on vacation until they need to fill their gas tank until their kid needs to go to college Once the world, majority of the world starts using Bitcoin for that, that is when I think fiat will go extinct. But we’re like hundreds of trillions of dollars away from that reality. Bitcoin’s at two and a half trillion dollars now. But, you know, when people say, oh no, Bitcoin needs to be accepted at Papa John’s. Not really. In my opinion, not really. Do I think it should? Yes. Am I going to work on that and fight for that reality? Absolutely. But the real fight, money truly, is the thing people are acquiring to save to later exchange for the things they need. Where’s the world storing its cash balance? That’s what Bitcoin’s fighting for right now. And it’s on the scoreboard, it’s at two and a half trillion out of like 500 trillion. So we keep fighting. I just saw Lavinia typing to me. Lavinia, if you need to say something to me, let me know. But if not, we go onwards. But that just reminded me that she likes when I blow up my face. during the Q&A, so I will do that. Get a look at these pearly whites. Cheese. All right, next question. Do you still think we are in a four-year cycle and will we see a bear market or does adoption and leadership change mean we are fast-tracking to a new monetary regime? Okay, let’s break that down. Do I still think we’re in a four-year cycle? Probably not. You know, the funny thing about the four-year cycle, liquidity cycles at, you know, nation-state and central bank level seem to mirror Bitcoin cycles around the halvings. And they’re not anymore, so we’ll see I would I would say we might not be in these very strict four-year cycles anymore It doesn’t mean though that we’re in an infinite cycle. I fundamentally believe cycles are a part of markets. It’s a part of humans and emotion We get euphoric There’s despair. It’s kind of just part of it. You know, we’re not robots. And so I do think we’ll have cycles. Are they going to be four years from the looks of things? Probably not. Are we going to have a bear market? Sure, of course. I mean, to me, a bear market only means that we had an extreme bull market, like I think bitcoin I think the marginal price for a bitcoin in the next two years could be a million dollars a coin. I’ve said that and Then if bitcoin goes all the way down to four hundred thousand dollars, that’s technically a bear market But you know if I were to say bitcoins gonna go from you know 120 to 400 you guys would be all on the show would be like, let’s go. But if I were to say it went from 120 to a million to 400, then there’d be a lot of sad depressed people. Does that make sense? That’s just human psychology and the emotional aspect to financial markets. And so to me, a bear market in Bitcoin only implies how big of a bull market we are in. And so I think humans get overextended, exuberant. There’s leverage. There’s all sorts of shit that goes down. And there’s so much euphoria in Bitcoin. Let me bring my camera down a little bit. And so that’s my prediction, is that yes, there’ll be a bear market only because the magnitude of bull market will be very large. How can the US have stable coins absorb liquidity without causing inflation in goods slash assets? Won’t stable coin liquidity enter the market eventually and cause inflation? Yeah, of course. Listen. You know, you’re not going to, I’m not going to be the guy that says there’s never going to be inflation in your eggs anymore. But you know, I do think that we’re, you know, going to try as a country to take all of the trillions of dollars and you know, stable coins. and jack Bitcoin up and take retirement account assets and jack Bitcoin up. And if you can debase the dollar against Bitcoin as opposed to eggs, gas, housing, what else do people like? Yeah, I mean, preferable. But you know, it’s even more preferable the more people own this stuff. So, you know, strike has a lot of users, but not compared to the population of the United States. We don’t, right? So, anyways, we will see inflation, you know, whether they change the definition of it, whether CPI becomes Who knows maybe you know when the Fed and the Treasury merged they’re like yeah the CPI thing whatever let’s get rid of it who even uses it anyway and maybe we just get rid of the notion I don’t know I mean you’re talking we’re playing a game where they change the rules whenever they start to lose so who knows but um to me it’s pretty clear and apparent that the dollar debasement is being targeted against neutral reserve assets which you know it should it should Next once Bitcoin Treasury companies are included in the major indices will that save the normie stock investors from negative or flat real returns um Yeah, I guess I mean again Sometimes let me tell you guys this sometimes Bitcoin is so simple that people can’t figure it out. Does that make sense? Like, sometimes I’m like, here, you can solve so many of your problems, all you gotta do is buy Bitcoin. But people can’t just do the simple thing. They’re like, well, no, wait, my friend told me that this dividend of this stock and this leverage, and if I did this and that, and it’s like, well, no, listen, your friend might be right or wrong, but I’m just telling you, all you gotta do is buy Bitcoin and store it somewhere safe. And you’re you’re good and for some reason people can’t like wrap their head around that so yeah, no listen if the S&P 500 consisted of 500 companies that owned a lot of Bitcoin and traded in accordance to Bitcoin Yeah, I think that’d be a lot better than the S&P 500 today 100% and by the way, that’s not an opinion. That’s a fact Bitcoin has outperformed the S&P 500 consistently ever since it’s been invented and And so that is an objective fact. And so, yes, to answer your question. But, you know, obviously, I don’t want people to have to wait for that, you know, and who knows, like, when that happens. I’m just such a big proponent of, you know, take control of your own destiny, of your own future. The only way to restore harmony in society is the renewal of personal responsibility. And so, you know, Bitcoin rewards those that seek out personal responsibility and control the outcomes of their own life. That’s who Bitcoin rewards. Those that didn’t listen to their professor, didn’t listen to the fiat economist, didn’t listen to group think 13 years ago, The people that said I want to think for myself. I want my own ideas. I want to question things that aren’t intuitively correct to me Bitcoin rewards that and that’s what I think we need more of in the world. So to answer your question. Yeah, of course. I mean if Or put it this way, you know, it doesn’t have to be the Bitcoin Treasury companies if everyone in the S&P 500 just took their balance sheet and bought Bitcoin then yeah Everyone the world would be a better place. There’s no doubt about that. But you know Those that are able to seek out personal responsibility and not wait for some, you know, like govern group that controls an industry to make a decision on their behalf will end up being the net beneficiaries, right? Okay. Industry. When Satoshi created the Bitcoin white paper, it seems like his intention was to create peer-to-peer cash. But it seems to be adopted more as a store of value. Will the lack of transactions be a problem? The lack of transactions will not be a problem Bitcoin is designed to work no matter the demand to mine it or the demand for block space now Don’t misquote me obviously If no one is transacting on top of Bitcoin forever, that would be a problem. But that’s another way of saying no one values Bitcoin at all and nobody cares. So, you know, if Bitcoin is to be valued by the world, Bitcoin will work. If Bitcoin is not to be valued at all and no one gives a shit about this version of money, then it will fail. So let’s just be clear about that. And then as far as like interpreting Satoshi’s, what Satoshi wrote 15, 16 years ago, I think it’s, I don’t know, I just don’t, I find it lame if I’m being honest. It’s like, it would be the equivalent if I pulled up a text message from my buddy 16 years ago, Like, we don’t know what Satoshi intended, what their, like, peer-to-peer cash could have meant a million different things. And 16 years later, we’re supposed to interpret it in a very specific way without verifying with the person who wrote it. Like, it just is a lame thing to me. It’s like, I pull up from my buddy, like, a text message 16 years ago. Bro will remember what you said that was like a lifetime ago and also I don’t even remember you know what I was specifically intending when I like the point is Bitcoin is it just is And if someone wants to use it as a digital version of gold, the coolest part and the whole point is you can’t tell them otherwise. If someone wants to use it as peer-to-peer cash, which I assume you’re meaning as if it’s a dollar bill, like for small payments and, you know, like a distributed version of Venmo, which again, I’m for all of these things. I’ve worked on all of them throughout my career. I will continue to do so. But, like, the point is, use it for whatever you want. It’s also, it’s a public utility, too, at the end of the day. So it’s like the public park down the street. If someone goes to the public park and uses it to play catch with their son to prepare him for his baseball game this weekend, but then someone else goes to the park to get a tan, but then someone else goes to the park for a picnic, The person at the picnic saying, this park isn’t for sports or for getting sun, it’s for eating food. But the guy playing catch with the sun is like, this park is space for me to practice sport. It’s not a restaurant. It’s not a tanning booth. And the person getting a tan says, this isn’t for sport or food. This is a calm, quiet place to get vitamin D. Who’s right there? Newsflash, nobody. And it’s a public utility that everyone has access to. And it depends on who’s using it. So who gives a shit? And if I were to tell you, oh no, the creator of the park wrote this abstracted thing and They haven’t been here in 15 years, and they’re never going to be here to tell you what they actually meant But uh they wrote that it’s peer-to-peer cash guess what I’m gonna play baseball there if I want to fucking play baseball there And I don’t really give a shit. That’s the whole point I’m not playing in someone else’s backyard if I was playing in some dude’s backyard And he was like yo my backyard is for me and my family well. That’s his property Bitcoin is no one’s property I don’t know. I just get sick of that. It’s like, stop. Like, I hate when Wall Street people yell at the cypher punks and the nerds. And I hate when the nerds and the cypher punks yell at the Wall Street people. It’s like… It’s the dumbest thing ever. Stupid. And it’s never gonna come to an end, by the way. It’s not like we’re trying to make progress towards some united goal, and we can come to a conclusion. We’re all just gonna go to the park every day, because we find the park valuable, and we’re all gonna do whatever we want at the park, and yell at each other over how people are using the park. I’ve never once gone to the park and yelled at someone else and been like, you’re using it wrong, asshole. The fuck, I would never do that. Anyways, okay. Lending, strike lending questions. Shout out, by the way, all of our customers. Our loan book, through the roof. Our private client desk helped people with close to $30 million of loans last week alone. So I love to see it. Listen, the product is not for everyone. I’m not saying everyone should use it. If you are in a financial position and you understand the product well enough where you want to borrow against your Bitcoin to avoid selling it, which is you want to access your Bitcoin wealth without having to sell it. I do that. I use the fuck out of our product. It’s huge. I love seeing Bitcoin staying off the market not being sold I love seeing people like strike customers as everyday people that get to keep their sats and still change their life they get to put a down payment on that house they get to pay off their debt they get to finance a medical situation and They get to do whatever it is in their life and change their life because of Bitcoin without parting with the sats. It’s awesome It’s our fastest growing product. We’ve ever launched by far and I just love to see it I love to see it so I part of what makes my job amazing is helping Bitcoin change people’s lives and It’s awesome. So just shout out all of the people that Use our product support us as a business means the world and Yeah, the lending stuff’s been cool, so I know you guys always have lending questions and by the way We’re just getting started the product is like two and a half months old I think we’re already based on the size of our lending book I think we’re already one of the biggest lenders in the world But we’re only in half of the United States of America. We haven’t even launched full… Well, we’re in a little over half of America for individuals, for businesses. If you want a loan against your business, we’re in over 40 states, so over 90… Are we at 45? Call it 85 to 90 percent of America for businesses. Individuals, we’re in about half, haven’t even launched global regions, which I will this week. And we haven’t even launched Europe and UK. So we’re still just getting started. So I know everyone’s like, you know, when this state, when this country, and like imminently, we’re working on it. Anyways, maybe I’m answering the questions before I read them. You close the loan early. Do you pay interest on only the days the loan is open for or the entire 12-month period? Only the days the loan is open for and there’s no early repayment Here’s the other thing guys not only do we offer some of the cheapest rates There’s no origination fee so a lot of the other companies and by the way We’re all on the same team, but, you know, so many people talk shit about me. I have to stand my ground a little bit. People will say, oh, our rates start at 11%, but when you open a loan, you have to pay a 2% fee. So the rate is really 13%. Like, come on. Like, it’s just the truth. We have zero origination fee. You do not pay to open a loan. You also do not pay to pay it early. You only pay us the rate. that we charge and we have some the cheapest in the game single-digit rates if you open a big enough loan we also have pay at maturity so you don’t even have to make monthly interest payments the way I use the product I use our payment at maturity products I do not have monthly interest payments I borrow money in a year later I owe the money right but what I do is I just will refinance
Jack Mallers [01:17:17]: So at the end of each term, I open a new loan which closes my own loan and I keep going. So I only borrow against a small fraction of my stack. So if there’s ever a bear market or something, I have plenty of collateral to go post it. There’s no rehypothecation, none of that shit. So I’m literally just living on my Bitcoin forever without ever having to sell it. So Bitcoin goes up 100%. My net worth just doubled. But I still go out, eat a steak, Take my girlfriend to Europe. It’s a life hack. It’s a legit life hack. And so we’re making refinancing in the app, our version of a line of credit, basically, in the app, so that as your paychecks come in, we can borrow in real time, so that living on Bitcoin is an incredible experience. It’s really an incredible life hack. So I don’t know. I cannot show this product enough if you’re interested in borrowing against your Bitcoin. Cut the shit for the people on Twitter. Jack wants to margin call everyone. Fuck you. I don’t want to margin call anyone. What are you talking about? Don’t say that. People love to lie on my name nowadays. That’s not true. It’s your life. It’s your Bitcoin. You’re responsible for the decisions you make, okay? Please do not use my product. If you aren’t comfortable, you don’t want to, please don’t. But if you’re interested in the benefits that I’m talking about, it’s an amazing product. I’m very proud of
Jack Mallers [01:18:48]: Any progress towards making lending available in all 50 states including Vermont yes Yes, including New York by the way You asked about progress Progress is being made on all 50 on all 50 progress is also being made on Europe progress is also being made on UK progress is also being made on some of the regions in Latin America as well and pacific asia era area progress progress across the board we’re just getting started we just launched this thing If one thing we do at strike, you know, there’s stay humble and stack sats. Our internal memo at the company is stay humble and ship the roadmap. That’s what we do. That’s what we do. No matter what rain, sleet, snow doesn’t matter. We stay humble. We ship the roadmap. We do not stop building. We execute, execute, execute. So you guys can bet your bottom dollar, bet your bottom sat. That we are going to make this product ten times better within the first year of its operations every single feature the best pricing Available in as many places and the coolest part too is where financial services firm so you know the more things we launch People will start to really understand the power of what we’re building because you know these other lending platforms are like we’ll get you the money within a day and strike you get the money in a second and if you wanted use RTP and instantly withdraw it in your bank you can go from borrowing against your Bitcoin to money in your Chase account in seven seconds. You can also get your direct deposit. You can also pay your bills. You want to borrow some cash and use that cash to pay your bills? You could all do that in one platform. No fee DCA, free withdrawals to cold storage. It’s like a full powerhouse Bitcoin experience. It’s pretty cool. Pretty proud. We hit all time high numbers across the board last week, so I’m just feeling proud of the team and what we’ve built and very thankful to you all that are listening that are also customers of ours. It’s pretty cool, pretty cool stuff. Okay, that’s it for questions. Let me check the chat. I haven’t been looking at you guys. Have you been yelling at me? What have you been saying about me? How blue and beautiful my eyes are? No, you haven’t. uh… yes you can uh… you can open up to five loans right now active loans on the platform so in and by the way guys let me just be clear to you the business is pretty big at this point so we need we we have rules like five months at a time but if you’re unique incense and you need sex like so bad just reach out to us You can DM me on Twitter. You can DM Strike on Twitter. You can reach out. Our private client service. So our private team, we help. It’s like a white glove concierge service. It’s a team that spends all day just making sure you’re okay and you get what you need out of Bitcoin. So we’re a business that actually has customer support that responds, and we’re here to help you and serve you. And so if there’s something that you need help with or a rule that you need us to change, there’s a good chance we’re going to be able to make it work for you. So just reach out. Pretty much every day, we have massive clients or some unique situation, and we go out and we fix it for them. It’s kind of our job. Okay, Texas is coming. Texas is coming really soon, like within the next month or so. 21 XXI, so we confidentially filed with the SEC. We issued a press release on that. What that means is that, you know, the deal is sitting with the SEC to be approved, which would allow us to list XXI in a stock exchange. So, you know, we’re working on that. That’s as much as I can say. All right I’m way over time, but this was fun. This was a good one They’re saying the quiet part out loud. Love you guys. Thanks for all the support We’re at like 30 something thousand YouTube subscribers way past my wildest dreams you guys are the best so uh I’ll catch you next week, and please leave the feedback in the comments. I read them all I appreciate it. We’re here to get better Peace and love take care