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New podcast: Anthony Pompliano on Price of Bitcoin, Gold, Chinese Power, Corporate Bailouts and 3 Places He's Investing

13 Apr 2020

Transcription

Chapter 1: What are the implications of government bailouts on the economy?

0.031 - 14.332

Done talking with Anthony, better known as Pomp on Twitter, talked about a lot of stuff like should the government with its $2.3 trillion stimulus bail out big corporations and how the heck does that help the little guy? We talked about should we lift the quarantine to get the economy back on track?

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He made a bold prediction that gold will break $2,000, maybe get up as high as $2,500, up from $1,600 today before coming back down. We also talked about Bitcoin and will more people go to it as the Fed keeps printing more money. That demand shock plus the supply shock, which is happening here in May, Bitcoin is having.

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Will those two things drive Bitcoin up to $100,000 per Bitcoin, up from $7,000 today? We'll have to wait and see. He made that prediction. We talked about should we nationalize PPE? and the supply chains that produce PPE. So we're never dependent on China or another country in the next emergency. We talked about what China power will look like after the virus. Are they more powerful?

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Are they less powerful?

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Chapter 2: What predictions are made about the price of gold and Bitcoin?

54.351 - 73.46

What happens to America as a leading superpower after this virus? And again, talk about corporate bailouts, Bitcoins, quarantines, you name it. We talked about it. Enjoy the episode. Hello everyone. My guest today, you know, this is like one of those cool things. You just say Pomp. It's just a one name sort of deal. He's so well established. It's just Pomp. That's all you need to know.

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You just go on Twitter. It's Pomp. It's good to go. But no, his name is Anthony and he's building an interesting media business. And more importantly, he's co-founder and partner at Morgan Creek.com. digital, writes a daily letter analyzing crypto news for institutional investors. But more importantly, he's got a Substack newsletter doing very well.

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And his podcast, I've recently saw him have guests on that were not necessarily only in the crypto space. And I said, I want to... Anyone who's interviewing people is usually the smartest because they get to interview and learn. And so I said, I got to interview this guy. So Anthony, thank you for joining me. Absolutely. I appreciate you having me. What did I miss?

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Anything there in the background?

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Chapter 3: How do supply chains impact national security?

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I mean, you are a crypto guy at heart, correct? Yeah, I spend probably 50% of my time specifically on all the crypto stuff. Before that, I was in the military, built and sold two companies and worked at some of the large tech companies after that. But pretty much I found myself spending the majority of my time on crypto stuff now, Bitcoin specifically. So let's jump into like today, right?

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So we're recording this on the 3rd. This will go live in the next two weeks. So we can be really relevant with today. We were joking before we started recording going, man, if we ever got like a letter from the government, you know, the president going on CNN going, stay home or you're going to be fine.

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Chapter 4: How will the COVID-19 pandemic affect the future of China’s power?

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We would all be like, are you kidding me? This isn't like an authoritative country. It's free. But today, stay home for the virus and no one asks any questions. Is this a scary kind of land we're venturing into? Yeah, it's one of these things where there's a health crisis. And so obviously that needs to be addressed.

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I think what's happening is an over-rotation on the health crisis, which causes the economic crisis. And ultimately what ends up happening is people look around the room and they're trying to figure out who they should listen to. And obviously the government has a very authoritarian type position when it comes to stuff like that. And so they're asking people to stay home.

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They're at some points even finding people, giving them tickets. I recently heard there's some restaurants in Illinois, I think it was, where cops actually showed up and arrested people who were inside of a bar that was operating, et cetera. So it's just a weird time. And I think we're kind of all figuring it out as we go through this together.

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So I want to walk through a bunch of different things on this episode with you, ranging from politics to power to ultimately currencies and Bitcoin and alternative asset classes. Starting with like the current crisis, right? So we see obviously unemployment going through the roof.

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We see the Fed doubling their balance sheet, but nobody is asking the question, when can we stop or how much money can we print before it bites us in the butt? What is the answer to that question? And in your opinion, why is nobody asking that?

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uh i don't have the answer um i tend to think more structurally uh just like this is not a good situation um and so people you know if you zoom out and say like what's happening right we're in a deflationary environment uh where there was a liquidity crisis the uh virus caused um you know a lot of people to say wait what's going on it caused the slowdown in the economy and so asset prices all sold off and the dollar strengthened because people wanted dollars right in times of uncertainty they want dollars

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And so what ends up occurring is all of those other assets end up going to close to a correlation of one. So they all start going down. And we saw that with Bitcoin, gold, you know, treasuries, equities, real estate, everything across the board. In order to reverse or stabilize the markets, what you've got to do is you've got to strengthen the dollar, right?

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Or I'm sorry, you've got to weaken the dollar. And so how do you do that? You flood the market with dollars. And I think that's what we're seeing them try to do. At first, when they were announcing, I think the first announcement was like $700 billion in quantitative easing. I remember writing something saying like, it's like bringing a water gun to a combat zone.

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It's just not going to get the job done. And so I started talking, saying that they were going to have to release a monetary stimulus bomb. And to me, it was going to be, I don't know, $1, $2, $3 trillion. It was my initial thought. They came out and they announced $2 trillion.

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