Bains vs Covid 19 — Transcript

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1. 0:01hello there welcome back so we talked
2. 0:06about Baines LBJ Lyndon Baines Johnson
3. 0:11no relation to this Johnson of course
4. 0:13but he was pretty smart wasn't he now
5. 0:15how did he pay for the Vietnam
6. 0:17War he did it by printing money didn't
7. 0:22he remember he printed money so he
8. 0:26prints money which should have caused
9. 0:28inflation but but the economic stimulus
10. 0:32created all these jobs and sucked up all
11. 0:34that extra
12. 0:36money and it was balanced out
13. 0:39until the end of the Vietnam War and
14. 0:42then all of a sudden all these jobs went
15. 0:44away and we had
16. 0:46inflation so now let's look what's
17. 0:48happening with
18. 0:51covid-19 so and this isn't political
19. 0:54trust me I'm I'm going to show you why
20. 0:55it's not
21. 0:57political but we had covid-19
22. 1:01and you know more people have died from
23. 1:03covid-19 in the United States than died
24. 1:06from World War
25. 1:07II it's a big deal right so all of a
26. 1:12sudden we had a lockdown where we said
27. 1:14nope oh your businesses have to close
28. 1:18now what are these people going to do
29. 1:21when they don't have a job their job
30. 1:24just went away they're servers at
31. 1:26restaurants they're School teachers
32. 1:30they all these people just lost their
33. 1:34job okay what are we going to do well
34. 1:40one answer was to extend unemployment
35. 1:42benefits okay okay that's called
36. 1:45printing money isn't it where you start
37. 1:48to create money where the government
38. 1:50creates money to give
39. 1:53people some money to live on when when
40. 1:56their job goes away because the co okay
41. 2:00that's that's the first one that's
42. 2:01printed money okay then they said we're
43. 2:03going to give economic stimulus checks
44. 2:07so you go you go to the mailbox all a
45. 2:09sudden woohoo there's
46. 2:11$4,000 everybody got
47. 2:14$4,000 or more or a lot
48. 2:18more so we're going
49. 2:20to um give economic stimulus to
50. 2:23businesses and stuff more money they're
51. 2:26printing money aren't they now why are
52. 2:29they printing money because they had to
53. 2:31it
54. 2:31was Co is a bad deal right it it's it's
55. 2:37pretty pretty terrible so all if if we
56. 2:41hadn't printed money what would have
57. 2:43happened to those poor people who just
58. 2:45lost their jobs they lost their house
59. 2:47they lost and they had $500 in the bank
60. 2:51to get them through nine months it it
61. 2:55wouldn't happen and then they'd be
62. 2:56living on the streets and would just it
63. 2:58would have been terrible so during the
64. 3:01Trump Administration they said nope we
65. 3:05got to give them some money okay not
66. 3:07political this is why it's not political
67. 3:09because when Biden became president he
68. 3:11says yep we got to give him more money
69. 3:14too so both the Democrats and the
70. 3:17Republicans both said hey we need to
71. 3:20give money we need to print more money
72. 3:26so these people can surv
73. 3:31it so I don't care if you're democrat or
74. 3:34republican maybe Libertarians might not
75. 3:36like it but I don't know but it's
76. 3:40pretty both both the left and the right
77. 3:43said yes we had to print more money okay
78. 3:45so they printed more money and we should
79. 3:48have had inflation shouldn't we but we
80. 3:53didn't not
81. 3:55originally why because what do people do
82. 3:58with the extra money that they
83. 4:00get they spend
84. 4:03it and when you spend money what does
85. 4:06that do to the economy it strengthens
86. 4:09the
87. 4:10economy right it makes it stronger and
88. 4:13it creates wealth does it so if you look
89. 4:16at the stock market stock market
90. 4:19goes during this whole whole period
91. 4:22between both under Trump and Biden so
92. 4:27stock markets going up everybody goes
93. 4:29wohoo this is great well because it was
94. 4:33creating jobs think of all everybody's
95. 4:36spending all this money you got extra
96. 4:38money so let's say you didn't lose your
97. 4:39job you still have some extra money so
98. 4:42you could have saved it we're not Savers
99. 4:45in the United States we're just not very
100. 4:47good at that so what what do we do we
101. 4:50spend it and when you spend it you
102. 4:52create jobs everybody's going W this is
103. 4:56great this is great uh
104. 5:01really so it was smart I'm not saying
105. 5:03that they were dumb I'm not saying that
106. 5:05Democrats or Republicans were dumb I'm
107. 5:06not saying our government was
108. 5:09done
109. 5:10but our
110. 5:12economy they're spending money they're
111. 5:16people are buying stuff like toilet
112. 5:18paper remember people are porting toilet
113. 5:21paper all of a sudden there's this to
114. 5:23the toilet paper companies cannot keep
115. 5:25up right they cannot keep up so they're
116. 5:29building up infrastructure they're
117. 5:31hiring people to work at toilet paper
118. 5:34stores not toilet paper stores but you
119. 5:37know what I mean toilet paper factories
120. 5:38they're hiring all these people so now
121. 5:42they're creating some jobs but some jobs
122. 5:44went down because of the co but now
123. 5:47they're creating some more jobs and it's
124. 5:50balancing up and it's making the economy
125. 5:52go up and everybody's going whoa this is
126. 5:55a great job this is really smart
127. 6:01okay it's only going to last for so
128. 6:04long what happens when they stop the
129. 6:08stimulus
130. 6:09checks or what happens when the economy
131. 6:13they made enough toilet paper they don't
132. 6:16need any more toilet paper what do they
133. 6:20do they lay those guys off so before you
134. 6:24didn't you before you didn't have a job
135. 6:26or let's say you were a server at a
136. 6:27restaurant and you made $15 an hour all
137. 6:29of a sudden the toilet paper companies
138. 6:32say hey we'll pay you $25 an hour you're
139. 6:35going like plus you get a steamless
140. 6:37check W so now you're going crazy you're
141. 6:40working 12 hours a day making toilet
142. 6:44paper then all a sudden we have enough
143. 6:47toilet paper because toilet paper demand
144. 6:50is fairly flat isn't it there really it
145. 6:53was a fake F they call it a bull whip
146. 6:56effect but it was a fake
147. 6:59time where everybody wanted toilet paper
148. 7:01when they didn't need it so now you've
149. 7:04overproduced toilet
150. 7:06paper okay what do you
151. 7:10do well you slow down production so
152. 7:13those guys that had the job $25 an hour
153. 7:17and they were getting all these economic
154. 7:20benefits they go by- boy go back home
155. 7:24now the restaurant isn't opened up yet
156. 7:26so now they're going going wow but I
157. 7:28have a lot of extra money right now I'm
158. 7:30going to spend it so it still creates
159. 7:32jobs but what happens when they stop
160. 7:35spending the money so now you don't need
161. 7:38to buy $1,000 worth of toilet
162. 7:41paper so you stop spending money now
163. 7:44there's all this extra money remember
164. 7:46why is money valuable it's
165. 7:49rare now everybody has extra
166. 7:53money what happens to the value of the
167. 7:57money it goes down
168. 8:00when the value of money goes down that's
169. 8:01called
170. 8:05inflation yeah right so it's everybody
171. 8:08knew that this is what's going to happen
172. 8:10all the economists knew this is what's
173. 8:13going to happen said we're gonna have
174. 8:14inflation now our banks our central
175. 8:16banks said well we've got some ways to
176. 8:19try to slow that down so we know we're
177. 8:22going to have inflation but we're going
178. 8:24to try to slow it down and there's all
179. 8:26sorts of ways they can do it they can
180. 8:27buy bonds they can there's a buil they
181. 8:30can stop printing money but if they stop
182. 8:32printing money now we don't have as much
183. 8:34money flowing in the economy the economy
184. 8:36would start to go down so
185. 8:39now what's going to happen have you seen
186. 8:42the price of
187. 8:45gasoline yeah remember a year
188. 8:50ago yeah gasoline was almost free wasn't
189. 8:54it water cost more than
190. 8:58gasoline you if you drink bottled
191. 9:01water yeah now the price of gasoline's
192. 9:04going up now a lot of people are saying
193. 9:05Mr Joe Biden it's your fault okay
194. 9:08remember don't get political on this is
195. 9:12it Joe's fault oh yeah is it Donald
196. 9:17Trump's fault oh yeah is it all the
197. 9:20Republicans fault yeah is it all the
198. 9:22Democrats fault
199. 9:24yeah but now remember Jimmy Carter
200. 9:27everybody the inflation they win
201. 9:29inflation everybody blame Jimmy Carter
202. 9:32are they going to blame Joe yes they're
203. 9:35going to right if I were a republican I
204. 9:39would say blame Joe if I were a Democrat
205. 9:41I'd say oh no but you have to understand
206. 9:44all the
207. 9:45well it's gonna happen we're gonna have
208. 9:47inflation that's just part of the game
209. 9:50that everybody knew that that was going
210. 9:51to happen but they said both Democrats
211. 9:53and the Republicans both said you know
212. 9:57what this C
213. 10:01pandemic is so bad that we will tolerate
214. 10:05some
215. 10:06inflation okay so you're G to get
216. 10:08inflation and it's just now how bad is
217. 10:11the inflation that's the trick so if our
218. 10:13Federal
219. 10:14Reserve uses their tools wisely they can
220. 10:18keep the inflation for not so bad so if
221. 10:21you've been to the grocery store
222. 10:22recently you know what I'm talking about
223. 10:24price of meat price of
224. 10:27gasoline price of toilet paper actually
225. 10:31pretty flat
226. 10:33but we all knew that this was going to
227. 10:36happen and it it's it's simplistic if
228. 10:38you say oh it's just one person one we
229. 10:41had to do it we just we had to uh who's
230. 10:45gonna lose out on it I think they're
231. 10:48gonna they're gonna say that Biden did
232. 10:50it but it wasn't Biden it was we first
233. 10:52did it with Donald Trump and they're
234. 10:55about as opposite as you can get aren't
235. 10:56they but they both agreed on this
236. 11:02so yeah so hopefully a Federal Reserve
237. 11:04will keep the inflation from going too
238. 11:06crazy but it's going to go up and just
239. 11:08get ready for that okay so the another
240. 11:12thing I want to talk talk to you guys
241. 11:13about is I showed you the video of the
242. 11:16richest people in the
243. 11:18world right the richest people in the
244. 11:20world uh that's changed now I wanted to
245. 11:25I so I had two choices I could re do
246. 11:29that portion of the of the videos it's
247. 11:33easy to cut and paste right and just cut
248. 11:34it and just talk about what's happening
249. 11:38today but I wanted you to see what
250. 11:40happened before because it was it was
251. 11:43very stable Bill Gates was the richest
252. 11:44man in the world
253. 11:46forever I mean and Warren Buffett was
254. 11:49the second richest man in the world
255. 11:51forever and it just was that way then Mr
256. 11:54Bezos comes along and with Amazon and
257. 11:58he's got
258. 12:00Richard so now Bezos and then Elon Musk
259. 12:03is coming
260. 12:06along yeah so let's look at what it's
261. 12:09like
262. 12:10today and this is
263. 12:13October so let's look see what's
264. 12:15happening in
265. 12:23October so this is Bloomberg right
266. 12:26remember Bloomberg is the gold standard
267. 12:28h no terrible joke is the gold is the
268. 12:32gold standard for wealth who's the
269. 12:34richest who's the richest person in the
270. 12:36world
271. 12:37okay now first off I I the the most
272. 12:41glaring thing to look at in this
273. 12:44chart is how what country is over
274. 12:50represented don't say
275. 12:52France so United States so let's
276. 12:57see number one two
277. 13:00three the top 10 of the top 10 nine of
278. 13:05them are from the United
279. 13:07States
280. 13:10okay yeah and also some of the some of
281. 13:13the some of the sources you will see it
282. 13:15depends on who you're looking at will
283. 13:17swap Bezos and musk back and forth
284. 13:20because it depends on how you count
285. 13:22their their stock values it it it
286. 13:26doesn't matter they're still Rich right
287. 13:28that they're clearly the no matter who
288. 13:32you're talking to on stock values or
289. 13:33valuations or something it's they're
290. 13:35still the two richest uh people in the
291. 13:40world right
292. 13:43um but here's what's what's really
293. 13:46interesting I don't care that that a lot
294. 13:48of them are from the United States but
295. 13:50let's look at the ones who are just from
296. 13:52the United States okay because France is
297. 13:55what's called an outlier right out m
298. 13:59Aral is an outlier which means he's a
299. 14:03little different than the rest of them
300. 14:06right and you say well what what what
301. 14:07does Bernard
302. 14:10do Bernard some people say Bernard I
303. 14:14like to call him Bernard no I don't know
304. 14:16him but if I met him I would call him
305. 14:19Bernard Bernard is Louis the T Louis the
306. 14:23you know
307. 14:24Lou but the rest of them have something
308. 14:28in common that burn does
309. 14:30not so let's compare Elon
310. 14:34Musk Jeff
311. 14:37Bezos Bill Gates Mark Zuckerberg Larry
312. 14:41pagee Sergey Larry Ellison Steve
313. 14:46Balmer what do they have in
314. 14:52common well they're Americans no no no
315. 14:54no no I don't care about that what do
316. 14:57they have in common
317. 15:00how much money do they invest in
318. 15:05research and
319. 15:08development so Elon
320. 15:12Musk
321. 15:14okay isn't he Mr research and
322. 15:16development I mean he comes up with
323. 15:18electric cars he goes into outer space
324. 15:20he litters outer space with little tiny
325. 15:22satellites so we can get internet all
326. 15:23over the world and be and it's I guess
327. 15:26it's really fast I don't I haven't
328. 15:27really played
329. 15:29wow he's super R&D guy isn't he Jeff
330. 15:33Bezos well that's not that's Amazon
331. 15:36that's not much research and development
332. 15:39uh yeah you ever heard of Amazon web
333. 15:42services yeah you go on Netflix did you
334. 15:46know Netflix goes through Amazon servers
335. 15:50almost everybody get they almost a
336. 15:53monopoly in fact they're like that close
337. 15:56to being regulated for being Monopoly
338. 15:58the reason they're not being regulated
339. 16:01for their Amazon web services is they're
340. 16:03not overcharge they're giving it as a
341. 16:05benefit too everybody else but that's
342. 16:11technology I mean and oh wait Elon Musk
343. 16:14and Jeff basos what else do they have in
344. 16:16common besides they do research and
345. 16:19devel oh the Space
346. 16:22Program yeah yeah yeah yeah okay um we
347. 16:26already talked about Mr Louis the he's
348. 16:29he's an outlier okay Bill Gates uh
349. 16:31research and development R&D Mark
350. 16:34Zuckerberg research and development Rd
351. 16:38Larry P research do you hear a trend
352. 16:41going on here yeah yeah these are the
353. 16:46the top they're they're all doing
354. 16:48research and development there's a
355. 16:49reason for that they know what they're
356. 16:51they're talking about okay now if you
357. 16:54notice some of their wealth has gone up
358. 16:57quite a bit so if you remember the last
359. 16:59video I showed you it had Bill Gates and
360. 17:02Jeff Bezos and they had like
361. 17:05100 uh hundred billion dollars wow
362. 17:08they're so rich and now Elon Musk is 200
363. 17:12it's called inflation dude that's what
364. 17:14happens the money has less value did
365. 17:16they really get richer no well yes they
366. 17:20did but comparably now let's talk about
367. 17:23somebody else Donald Trump okay so
368. 17:27Donald Trump is no longer in the fortune
369. 17:32400 list of United States billionaires
370. 17:36he's kicked off right he is not one of
371. 17:39the 400 richest people in the United
372. 17:42States He no longer is they say wow he
373. 17:46must have lost some
374. 17:47money he didn't lose any
375. 17:50money so wait he was in the 300s before
376. 17:53and now he got kicked off the list he
377. 17:55got kicked off the list and he didn't
378. 17:56lose any money he didn't lose any money
379. 17:59inflation he didn't make any money but
380. 18:02he could get pretty stable actually
381. 18:05right and you consider he does lots of
382. 18:07real estate um stuff in New York City I
383. 18:11mean that's kind of where his thing is
384. 18:14and do you really need real estate
385. 18:17office do you need office space when
386. 18:19everybody's at home doing Zoom meetings
387. 18:21like
388. 18:22this probably not so even though the
389. 18:27value of some of this prop
390. 18:29may have taken a hit he's done okay he's
391. 18:33he's maintained a very flat he a since
392. 18:37he's left left office he hasn't made any
393. 18:39money but he hasn't lost any money but
394. 18:41we have inflation and when we have all
395. 18:42these other guys doing R&D does Donald
396. 18:45do R&D not really right he does
397. 18:48buildings and casinos and all those
398. 18:52other things that he likes to do compare
399. 18:54that to this These Guys these that's why
400. 18:55these guys are zooming because the Rd
401. 19:00yeah
402. 19:03so it's a lot to think about I know but
403. 19:06wow R&D makes is
404. 19:09is really what makes all the wealth it
405. 19:14except for Mr Louis Vuitton now and then
406. 19:17we can go down after we get from the top
407. 19:1910 then we have Warren Buffett now
408. 19:22Warren Buffett is also an
409. 19:24outlier waren Buffett used to be like
410. 19:26number three he actually been number two
411. 19:30a lot right and now he's down
412. 19:33to well Warren Buffett made a few
413. 19:36mistakes during the
414. 19:38pandemic uh but he's
415. 19:41still Warren but that is still the
416. 19:44richest man on this list from only
417. 19:50investing think about that
418. 19:53so Elon Musk he made stuff didn't he
419. 19:58made car s and rocket ships Jeff bezus
420. 20:01makes
421. 20:03cars Mr AR makes handbags right they all
422. 20:08Mr Gates makes software that they they
423. 20:10make Mr Facebook right they make things
424. 20:14right but Warren Buffett never made an
425. 20:17darn thing he just
426. 20:21invested so he's pretty smart right even
427. 20:24though he's only number 10 and he's
428. 20:26dropped down a bunch because he doesn't
429. 20:28is also like really
430. 20:30old and it's hard when you're that old
431. 20:34to compete with somebody like Elon Musk
432. 20:36who's pretty young so I mean okay and
433. 20:40after that then we get down here to uh
434. 20:45by the way Carlos Slim used to be number
435. 20:48one he was number one for a long time
436. 20:51but now he's dropped down there because
437. 20:54Mexico uh broke up his uh his uh
438. 21:01telephone system under
439. 21:03antitrust yep and then The
440. 21:07Waltons and the Cook
441. 21:09Brothers right so anyway so you you get
442. 21:12an idea so I I sent you the link to this
443. 21:14so you can go and play with this but uh
444. 21:18yeah research and
445. 21:25development he thanks a lot bye-bye