Carol Roth

You know, taking a digital ledger that they have and just adding money to it and using that money to go out into the market and buy things like treasury and mortgage securities to help loosen up the economy and to get it going after the crisis.

And when you create money out of nowhere, it's a problem. Because you have to remember that money, in addition to being a store of value and a unit of account and a medium of exchange, that it's a proxy for productivity, right? That it's something that they give you as a certificate, an IOU, a claim, when you earn money.

When you go out and you do work and you earn something and you're like, okay, well, instead of me trading with you and then you trading with the next person to help facilitate that exchange, they're giving you this IOU. But it represents a claim on the work that I've done or the investment that I've made.

When you just start adding dollars that nobody earned, that didn't add anything to the system, that didn't create an investment, then all it does is just create more dollars that are chasing the same amount of goods and services and makes the fruits of your labor, so to speak, worth less.

And so that's really what happened, starting with the Great Recession financial crisis and then expanding thereafter. It went nuts again during COVID and thereafter. And they've just now added so much money to the system that they have, A, not only let the government get away with having huge deficits and not spending within their means, but they've also created non-merit-based inequality.

I have no problem with capitalistic inequality, right? That if you have Michael Jordan or Beyonce or the people who are at the top of their crafts making millions and billions of dollars versus somebody who's not quite as good, I do not care about that inequality. But when it's being driven because the Federal Reserve is printing money that pushes up the value of assets,

at the expense of the cost of living of everyday Americans, I do have a problem with that. And that really has been the driver of this K-shaped economy, what it is that we've talked about in all of this divergence. It's a large part of the reason we saw the massive inflation during the Biden administration, in addition to his stimulus checks, but them being on standby and allowing this to happen

is sort of the enabling factor. So it's government policy and Fed policy hand in hand. Now we are at a point, fast forward to today, where our fiscal foundation is an absolute disaster.

Meillä on liittoa, joka ylittää maailman GDP. Meidän liittoa on noin 120 prosenttia. Se on jotain, jota voisi nähdä esimiehellä kriisissä. Meillä se ei onnistunut, koska tällä hetkellä meillä oli maailman resurssit.

We have the world's trading currency. We have a huge economy and markets. And so that's been able to kind of hold it together. But at times things go sideways and the Fed needs to intervene in that. We're running deficits.

Tällä hetkellä se on noin 6 prosenttia GDP-kohdalla. Se on tasa, jonka näet kriisissä, keskustelussa tai maailmassa. Sitä ei näe, kun meillä on kasvava ekonomi tai kasvava ekonomi.

Because if you think about it, the economy grows, the government takes in more money, that should shrink the deficit. But we're seeing the opposite happen. We're seeing these massive deficits. Again, something that happened under the Biden administration because they didn't want to go through a recession, and so they just spent more to paper over it, create the appearance of growth, and then you still have this huge deficit. And at the time that we have all of this going on, given our massive debt load,

and the fact that we have lots of debt that continues to need to be refinanced,

We are now having the interest rate on the national debt, or excuse me, the interest payments on the national debt, so the amount that we're servicing for that national debt, kind of like if you have a credit card, the amount that you owe and you have to pay on your credit card. Our debt payments every year are now exceeding the country's expenses on defense. So the defense of our nation is now second to our interest expense.

Joten olemme tässä vihreällä, vihreällä tilanteella. Ja ongelma tulee siitä, että, tiedät, siksi, että meidän rauhallinen taloudellinen tilanne ja paljon muita asioita, jotka tapahtuvat maailmassa, eivät ole niin monia ostajia, jotka tulevat ostamaan

meidän keskustelun turvallisuudet, joita me tuotamme, jotta tuotamme enemmän liittoa markkinoille, jotta voimme palata näistä rajoituksista. Ja siksi ei ole niin paljon asiakkaita, jotka vain ostavat niitä, koska he aina pitävät niitä. Niitä on asioita kuten keskustelujärjestelmät maailmassa. He pysyvät meitä ja olemme rauhoittaneet. Ja nyt kaikki, jotka ostavat niitä, ovat rauhoittamattomia.

So they're looking at things like potential inflation and what's going to happen in the economy and plus the supply and demand, because every time we run a deficit, that puts more supply of bonds into the market. So supply and demand, right? So our interest rate keeps going up. Even when the Fed cuts what their target rate is, that's for short dated securities, something like a month or a couple of months.

But for the longer end of the curve, the yield curve, things like 10-year and 20-year and 30-year treasuries, the market is making those decisions. And so regardless of whether it's Powell or Warsh or whoever, they're sort of beholden to what the market is saying, which is why we've seen the yield on the 10-year stay stubbornly high, even though they continue to cut their target interest rate.

Minun huolestani tästä yleisöstä on se, että olemme laittaneet tilanteeseen, jossa todellisuudet jatkuvat vahvistamaan niitä arvoja, joita meidän täytyy palata arvostamme. Se tarkoittaa sitä, että arvostamme kestävät. Jos arvostamme kestävät, se tarkoittaa sitä, että arvostamme kestävät.

Ja jos saamme kasvua, se tarkoittaa, että meidän täytyy rahoittaa enemmän rahaa, mikä tarkoittaa, että meidän täytyy laittaa enemmän rahaa markkinoille, mikä tekee mitä? Se vahvistaa kasvua, koska nyt meillä on lisäarvoa markkinoille. Joten se loppuu tällaisella vihreällä rahoittamalla. Joten todellisuus on, että jossain vaiheessa täällä ei ole vaihtoehtoa.