Brian

Can I tell one story before we go? I know we're tight on time. Yep. My mom just passed, as you know. Thank you for the flowers from you and Sharon. Thank you. My mom and dad were engaged for seven years back in the day. Okay. Going to be promised to be pure. One another, one of us, seven years, they were engaged. They wouldn't get married until they could buy a house. Wow.

Can I tell one story before we go? I know we're tight on time. Yep. My mom just passed, as you know. Thank you for the flowers from you and Sharon. Thank you. My mom and dad were engaged for seven years back in the day. Okay. Going to be promised to be pure. One another, one of us, seven years, they were engaged. They wouldn't get married until they could buy a house. Wow.

Of course.

Of course.

Of course.

Yeah, Charlie, it's great to be with you. This all started really back in 2008 when Ben Bernanke walked into W's office and and said, hey, if you don't let me print $4 trillion and flood the financial system with that money, the whole global world order is going to collapse. That was when it began. We did it again during COVID.

Yeah, Charlie, it's great to be with you. This all started really back in 2008 when Ben Bernanke walked into W's office and and said, hey, if you don't let me print $4 trillion and flood the financial system with that money, the whole global world order is going to collapse. That was when it began. We did it again during COVID.

And so what this means is that we have increased the money supply in the United States. It was $7 trillion in 2007. It is now $21 trillion. So let me put that in perspective. If you have a $100 bill in your wallet, 67 of those dollars were created in just the last 18 years. Like, that's how much money we printed. Now, when all of that money goes into the banking system, it turns into inflation.

And so what this means is that we have increased the money supply in the United States. It was $7 trillion in 2007. It is now $21 trillion. So let me put that in perspective. If you have a $100 bill in your wallet, 67 of those dollars were created in just the last 18 years. Like, that's how much money we printed. Now, when all of that money goes into the banking system, it turns into inflation.

And the way the Fed stopped it from turning into inflation is first they raised a ton of regulations on banks. And second, they paid banks to hold that money. So we are now paying banks about $200 billion a year to not lend that money out. That means we're paying private banks. Now, the interesting thing is the Fed bought bonds with that money.

And the way the Fed stopped it from turning into inflation is first they raised a ton of regulations on banks. And second, they paid banks to hold that money. So we are now paying banks about $200 billion a year to not lend that money out. That means we're paying private banks. Now, the interesting thing is the Fed bought bonds with that money.

And so they earn interest from those bonds, but they're paying banks more than they're earning. In other words, the Fed is losing. Last year, they lost about $80 billion, and the taxpayers funded that, and we used that money to pay banks. If we stop this, think how much we could lower the deficit. Over a 10-year period, it would be $2 trillion.

And so they earn interest from those bonds, but they're paying banks more than they're earning. In other words, the Fed is losing. Last year, they lost about $80 billion, and the taxpayers funded that, and we used that money to pay banks. If we stop this, think how much we could lower the deficit. Over a 10-year period, it would be $2 trillion.

Yeah, they play sleight of hand with this, Charlie. It's crazy. The Federal Reserve has an account that they call a deferred asset. So normally, before all of this change, the Fed owned bonds, but they didn't pay banks, and they made money every year. And so then they would give that money to the Treasury at the end of the year.

Yeah, they play sleight of hand with this, Charlie. It's crazy. The Federal Reserve has an account that they call a deferred asset. So normally, before all of this change, the Fed owned bonds, but they didn't pay banks, and they made money every year. And so then they would give that money to the Treasury at the end of the year.

Now, with them losing money, they have what's called a deferred asset. which is the craziest term I've ever heard. It's a negative account. I don't know how they're paying their employees. I don't know how they're keeping their lights on because if you run a private business in a deficit, you either have to raise more equity or or debt or something in order to pay to keep the lights on.

Now, with them losing money, they have what's called a deferred asset. which is the craziest term I've ever heard. It's a negative account. I don't know how they're paying their employees. I don't know how they're keeping their lights on because if you run a private business in a deficit, you either have to raise more equity or or debt or something in order to pay to keep the lights on.

And so my belief, and the Fed won't really tell you this, is that they're borrowing money from the Treasury in order to keep the lights on. In Britain, the UK, they did the same thing. And now they're kind of caught because it's raising their deficit, but at least they're accounting for it the right way. We don't. We hide it.

And so my belief, and the Fed won't really tell you this, is that they're borrowing money from the Treasury in order to keep the lights on. In Britain, the UK, they did the same thing. And now they're kind of caught because it's raising their deficit, but at least they're accounting for it the right way. We don't. We hide it.

And so I can only imagine that Elizabeth Warren doesn't understand that we're paying private banks $200 billion a year because I think she'd have a cow if she knew that. She hates banks. And so this is the most amazing, insane policy I've ever seen. And yet we're doing it.