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Yo. Welcome back to another episode, yet another episode of the Jack Maller Show. I am your host, Jack, and you are listening to Mail Bag Monday. Ladies and gentlemen, how the hell are we? The world's down. Turn that frown up on. If there's one thing we're gonna do today on today's show is we're gonna bring the vibes, man. We're gonna bring the vibes. We gotta get these vibes up. Everybody wants to stay humble and stack sats until it's time to stay humble and stack sats till it's time to buy the dip. Everyone wants to buy the dip until it's time to buy the dip. Lock the in. Okay, I'm talking to you all at a bitcoin price of US$70,900. That puts bitcoin's market cap at 1.42 trillion. The all time high we made on October 6, 2025, 238 days ago. We are 43.8% off of that $126,160 all time high. The last bitcoin block mined since I hit stream, that was bitcoin block height 952,034. Okay, guys, we got to bring the vibes. I brought the beard. Look at this bear market beard. Ladies, I'm engaged. Keep it together, pay attention. Okay, we got bear market scruff. We got good vibes because everybody wants to buy the dip. Oh, I believe in bitcoin. I stay humble. I stack sets. I buy the dip until it's time to buy the dip. Okay, we got to keep the vibes high. So without further ado, let's get into it. The title of today is real. Boom, question mark. Fake money, question mark. How real is the AI story? How is it being financed? How is it impacting the bond market? What's going on at the Fed today is really just more. We're going to do more of a news show today. I take a little pit stop at what. What the hell is the thing called we take a pit stop at the straight of Hormuz? We talk about bonds, we're going to talk about the Fed. The Fed is more like a comedy skit you guys are getting. You guys will laugh out loud at the Fed chapter. And then we're going to talk about AI. The AI one is really interesting. There's a lot of real productivity going on. There's a lot of not so real productivity going on. And then we will end it with some bitcoin insights, shall we? Let's go. Before you Waste time. Answer these first. These are our non negotiable political straight of Hormuz questions. We got four of them every episode. Until we can answer these, we shall not delve into the mindless, endless fiat government game. We shall not get tricked into that pony. So, number one, is the Strait of Hormuz still closed? Yes. Now, if you were on the Internet and you were following all the headlines, a deal, no deal. A deal, no deal. A deal, no deal. But guess what? Every single week, we ask the same question, because we know that politicians, all of them, talk, talk, talk, talk, talk, talk, talk, talk. And all we care about is, is the world and global trade resuming, or are we entering an energy crisis? So is the straight of Hormuz still closed? Yes. Is the conflict still ongoing? Yes. Our global supply chain still disrupted? Yes. Can global debt survive this disruption? Can not. Another week, more headlines, A lot of drama, a lot of negotiations. A lot of this, a lot of that, a lot of yap, a lot of that. All the answers remain the same. However, I will say, as we near us midterms, which doesn't matter what side you're on, politicians care about one thing. That is getting elected. Okay, as we near midterms and as this energy shock becomes real, okay, every single Western, even allies of the west, they are bleeding their strategic petroleum reserves, they're bleeding through their oil reserves. They are at the last whims of grasp of controlling the price of energy and the ability for their citizens to consume energy at a reasonable cost. The gig is almost up. This from the New York Times. The US Military is quietly guiding ships through the Strait of Hormuz. So we're starting. We are starting to see a little bit of activity. So I would be lying to you all if I said that there was zero activity. There's a little bit of a pickup of activity. And it seems to be the United States that is more willing to put the guns down. It seems like Trump's plan is a little bit of a taco. Taco stands for Trump always chickens out. A little bit of a taco where he says, we won. Like, really? What'd you win? Nope. I'm not going to get into the politics. Nope. Not even going to crack those jokes. But just so you guys know, there is a little bit of activity. I really don't think that the world can sustain a few more months of the straight completely closed. I would expect some resolution. And. And so I am. That's my job here on this show. Tell the truth, bar none. I am keeping A close eye on the straight. But as of today it still remains closed. So we skip the politics. You will not find that here. Get that out and let's talk about how full of garbage bonds are. Okay, let's talk about the debt trap. The corner that nobody can escape. I was reading an article. All my sources are linked here in the slides. I was reading an article and I couldn't help but include this. Check this out. Just. I'll read the slide. Federal debt held by the public. Debt held by the public rises each year of the projection period from 101% of GDP this year to 120% in 2036. Higher than any point in the nation's history, the nation being the United States of America. Over the following two decades, growing deficits will push federal debt to 175% of GDP. And GDP is important. You hear this GDP, this acronym all the time. Why is GDP important? GDP is important because it's a reflection of growth. So if you are going to take on debt, what's really important is understanding how much you are growing relative to the debt. Right? That's why the metric debt to GDP is so valuable. It's like, okay, I'm borrowing from my future. I am taking my future. I am pulling it forward in spending it now. Now the only reason you would do that is if you could pull your future forward to spend it now so that you can arrive in your future with more resources than you otherwise would have. Right? If I can borrow money to start a lemonade stand, I borrow $100 and I can sell $200 worth of lemonade. That's good debt. I would be, I would make whole on that debt. I'd pay the $100 back. I have $100 of excess. I've arrived at my future state with 100 extra dollars that I otherwise would not have had if I did not borrow the initial hundred. Easy now. If debt to GDP is going the wrong way, that means we are misallocating capital. We are misallocating time, energy, human resources, human effort, human dignity. You understand? People are pulling forward our future, our kids future, their kids future. And they are misallocating that capital. And we are arriving in the future with less than we otherwise would have. Bad. No bueno, not good. And to see this written going from 100% of GDP to 120 in 2036. This is federal debt held by the public. By the way, this is above the World War II record. We are about to break the record for when we are in a world War. Look at the chart. Oops. Look at the chart. Look at the far left. You see World War II. See that we are what? What's happening today? Literally nothing relative to World War II. Not nothing. All the Clippers on Twitter don't do that. I'm not saying nothing. The world is a complicated, sad place, seemingly permanently. That's what it feels like. Okay, I'm saying relative to World War II. Okay. We've got AI. Got the World cup coming up. Olympics. Dandy, right? Yeah. You ask American politicians, the world is dandy crazy. Okay. Anyways, we move on. So given the rise in debt held by the public, who's financing this debt? Who's lending? The United States money March saw the largest treasury sale since at least 2023. And if you look at the chart, this is the 10 emerging market economies that rely on importing oil. Why is this relevant? We talked about it last week. We're probably going to talk about it for the coming future. On Maslow's Hierarchy of needs, what do you think comes first? Energy, oil or US Treasuries? Which one do you think is needed and required for a high quality of life? U.S. treasuries Nation State debt or energy and oil? Rhetorical question. It's energy and oil, Duh. And so people are going to dump these trash bonds because they need to consume energy. Given we are in an energy crisis. So how's the conflict in the Middle east shaping the rest of the world? How's an energy crisis, global supply chain shock, how does that impact the world? Well, Western bond yields are going to soar because everyone's going to dump these pieces of trash because. And remember, the world is collateralized by these things. And so when the world needs to raise capital to spend, they sell the collateral. Duh. If you've collateralized your life on Bitcoin and you need to finance a medical emergency or you have a wedding, or you need to put your kid through school, you sell the bitcoin. Duh. And so look at that red bar. We are seeing. Countries sell bonds and the market is not nearly as liquid as advertised. It is not nearly as bid as advertised. There's not a lot of buyers. There's clearly more sellers, which is what's driving yields up, which we'll get to in a second. Check this chart out. Japanese crude oil reserves post the largest drawdown in the country's history. I'm telling you guys, the straight of Hormuz thing isn't a joke. And, and we've said it on this show uniquely we're not cnn, we're not cnbc, we're not Fox News. None of that garbage. Tell you the truth, I got no advertisers. I do this for the love of the game, for the love of the people. Man of the people, they say. They say that? I didn't say that. Man of the people tells you the truth. What's the truth? This conflict wasn't ending anytime soon. The strait was going to be closed for a while. You ever seen that Family Guy episode, Cool Whip? The straight of Hormuz is going to be closed for a while, okay? And you cannot just do that. Energy is the currency of the universe. We are entering a more multipolar world, a more multi currency world. We're remonetizing hard money. Things like gold and bitcoin are gonna have a new tune to it, a new twang. And countries are going to be asked to deplete their reserves of oil. And right after that they will start dumping bonds as we're seeing in the emerging markets. You guys want to see what 10 year treasury yields look like when Japan starts dumping those? Trust me, you do not want to see that. And actually trust me, central planners, central bankers, politicians, they won't let you see that. They won't let you see that. We are much closer to a crisis than people are know. I would go on a brink to predict that. I'd go out on a brink and predict that it won't necessarily be the United States that starts printing a lot of money first, but somebody will be printing a lot of money first soon. What makes me say that? Well, look at all of the yields around the world. This is not a US problem. So this tweet from bad charts1 he follows me on Twitter. Shout out to you brother. Yield alert. World yields, world yields. Excuse me, are breaking out of a multi year consolidation. This is a global move, not a one country phenomenon. You've got US 10 year yields, German 10 year yields, British 10 year yields, Japan 10 year yields, Canada 10 year yields. And actually interestingly, you want to know the one country whose 10 year yield is not soaring right now? China. And you say what you want about China, but they have been stacking gold and they are productive now. They're the CCP needs to be abolished, not I'm not a fan of China, never live in China, don't love China. Their 10 year yields are going the opposite direction of the United States. It's an interesting data point, okay? But the point is this is not a US only problem. This is a global Problem. This is a Western problem, okay? This is a global move and money printing is on the horizon. And taking a step back, since this is a show by the common man for the common man, why is this relevant? This is relevant because again, bond math is inverse. Yields rise when demand falls, when people are selling bonds, yields go up. And this is all a giant doom loop, right? Because yields rise. That makes it unaffordable for these countries that are so indebted running these large deficits to roll over their debt, which causes them to print more, which causes the yields to go higher, which causes them to print more, which causes yields go higher. And you get into this cyclical doom loop where who the hell wants to lend to a government that's in so much debt, that needs to print money just to cover its interest payments? You know how much yield I would need to lend to someone that broke? I'd need 10%, 20%, right? And then they're so broke, there's no productivity on net. And that's how these things get into a sovereign debt crisis. So to recap, how are bond markets globally doing? Terribly. Why are they doing terribly? Inflation expectations are through the roof. Energy shock is real. The straight of Hormuz remains closed. The lender, the marginal lender to the west is gone. They're going to need to do things like change the domestic banking regulations to allow customer deposits to be lent to the government. They're going to need to change the banking regulations to allow for unlimited leverage. They're probably going to need some tricky form of yield curve control, which is the central bank printing money just to help cover the interest payments of the government on net. Nobody wants to lend to the western governments. They're too indebted, they're not productive. The whole debt to gdp, or public ownership of debt relative to gdp, this is a misallocation of capital. And misallocation of capital at the government level on behalf of its citizens is this flies in the face of human dignity. Because what are you? You are. Your time, your energy, your effort, your labor. You get up, you go to work, you contribute for this world. And a government's ability to borrow from your future, borrow from that future day where you want to sleep in, you want to hit snooze, you want to go to the beach and you don't. And you get up and you bust your ass and you go to work to feed your family. And the government borrowed from that future day and spent it. That day is gone. That hard working day gets you fuck all. Gets you no groceries Gets you no vacation, puts your kid through no school, gets you no housing. So that not only is a misallocation of capital and the financials and the yield and the this and the carry the two and the four, and it equals that number. No, fuck that shit that flies in the face of human dignity. That's how serious fiat is in the problem that it is, you have no dignity with these people pulling forward your future and misallocating it. It's, and it's garbage. And these yields will go to the moon because as time goes on, it is untenable for them to borrow in perpetuity, misallocate the capital and not be productive. At the end of the day, it doesn't matter how unfree these markets are. These governments are so unproductive. This will finally fall apart and us humans will be free to enter free markets in free allocation of capital and labor and build things and love each other and have kids again. Which I'll get into later. All right, I gotta move on. Chapter two. Let's talk about the Fed. All right, that's my update on the bond market. News flash. Still a piece of shit. Let's talk about the Federal Reserve because this was laugh out loud funny. What you guys should know. So the new chairman Warsh. So our boy Powell is pieced out. Warsh is now in as the chair of the Federal Reserve. First meeting for our boy Warsh is June 15th. It's in about two weeks. Okay, let's check in on the Fed. So this is some more financial gibberish that the common man doesn't really need to understand. But what you're looking at is the two year. Okay. And the Fed funds rate. And when the two year is above the Fed funds rate, that is effectively the market saying that the Fed needs to hike rates to fight inflation. Why is that? Well, the two year is signaling. If I need to lend the government money for two years, I'm pricing in such high inflation that the yield needs to go higher. Right. I'm thinking that inflation is going to rise because of what's happening in Iran, because of what's all the spend that's happening with AI? Because of this, because of that, I'm worried about inflation. So even just to lend it not 10 years, 10 year, it's like how do you price inflation over 10 years at the rate of which governments are spending? But even two years, two years, okay, if two year yield is higher than the Fed funds rate, that means the Fed needs to raise that rate. That's what the market is saying, does that make sense? Okay, this is apolitical. Pure mechanics. This is the cleanest way to get a gauge on how the market is sussing out near term inflation expectations relative to the Fed funds rate. Now the problem that the Fed has that will continue to hammer home and revisit on the show is they're caught in a pickle. Okay? Warsh was put in place by Trump to cut. We all know that. Why does Trump want to cut so bad? Well, the third largest expense for the US government is the interest expense. We're spending over a trillion dollars on interest a year because rates above0 on $40 trillion is a lot of fucking money. It is not cheap to roll over all the unproductive misallocation of capital, misallocation of our future, of my kids that these morons have already spent. It's untenable to have interest payments this high. So you have to get those down if you're going to continue to kick the can down the road. However, if you cut rates in the face of oil at $100 a barrel and the Strait of Hormuz effectively shut down and global supply chains driving inflation through the roof, mind you guys. During COVID the United States Federal Reserve, the central bank cut rates, but oil was negative. $40 a barrel. You could get paid to accept a physical barrel of oil. If you were willing to just put oil in your attic, you would get paid cutting rates in the face of $100 positive $100 a barrel. Inflation's already a problem. You have all of these big tech companies that instead of taking their cash flows and plowing it into stock buybacks, are taking their cash flows and plowing it into fucking construction to build data centers. That's highly inflationary. So you have the most productive companies in human history taking their profits and plowing it into the real economy. And then you have a conflict in the Middle east that can't find a resolution which is causing an energy shock. You want to cut rates into that. A dozen eggs is going to be $1,000. So the question is, which way do you go? You want to hike rates even more the sovereign. The United States is going to collapse on its face with all this debt. There's no way. So anyways, you see on the screen a dovish Fed dovish means easing easier money. Dollar down, gold up, bitcoin up. Yields are going to go through the roof. If that happens, hawkish Fed yields are still going to go up. So I again, long story short, the bond market's screwed. They're Going to need to find a way to print the money and cap the long end somehow. And why do I keep talking about the 10 year? I got to remind you guys this as well. Why is the 10 year so important? Why aren't we talking about the 2 year, why aren't we talking about the whatever. Why, why only the 10? The 10 is the most liquid one that is used for all of the consumer lending products, like your mortgage, like your credit card rate, like your car loan. So it has the most practical implication on your life. So seeing mortgages go up is because the 10 year yield has gone up. That's why. Very simple. And so it, I think the Fed is stuck. I the market is saying they need to hike. There's no fucking way. I do not think they can. But Trump says he wants him to cut. There's no fucking way. That was before the conflict in Iran. There's no way, zero percent chance. I think they're going to sit and try and buy themselves time and see what happens. But either way, bond yields are going up. That's the thing. It's like to me, it's over. We are entering like, you know, we talked about it last week. They kicked the problem up to the housing market. And then 2008, the housing market blew up. They kicked it up to the bond market. And then in 2000 the bond market blew up. They've kicked it up to the currency. The bond market blew up during COVID Yields aren't coming down anytime soon. It's over. And they, during COVID they kicked it up to the currency. I mean they printed like 25% of all outstanding dollars in like a day. It's now time for the currency to get its ass beat. The dollar is going down, yields are going up and the dollar's going down no matter what. That's my prediction. You heard it here first. Now let's get to the Saturday Night Live skit of the Fed. So warship, he's been saying hilarious things about how he gauges inflation. And let me go on a quick rant here because it takes you back to what is inflation is inflation. CPI stands for Consumer Price Index. How the government measures inflation. Of course it's not cpi. Inflate. I'll tell you the inflation rate, you tell me what you want. Do you want Caesar salad, a Netflix subscription and to live in your parents basement for the rest of your life? There's hardly any inflation. Caesar salad barely gets more expensive because you're literally eating leaves plucked off a fucking tree in your backyard. You're eating peasantry leaves off a plant. So if that's what you're gonna eat for the rest of your life, don't worry about prices. That Netflix subscription, those don't tend to get too expensive over time because it's literally a server sitting in some Palo Alto basement. So that don't worry about that. And living in your parents basement as long as your parents don't charge you rent. Yeah, you don't have to worry about inflation CPI literally zero. Just enjoy your leaves, enjoy your television shows and enjoy living in a basement of your parents with no windows. Oh, that's not the life you want. What life do you want? What? What life do you aspire to have? Oh, you want multiple children? Oh, you want to have a backyard? Oh, you want them to go to a good university, maybe private school. Oh, you want a car? Oh, two cars. Because you need to commute to work and the wife needs to take the kids to school. Oh, your kids aren't going to eat leaves off a plate with seed oil dressing for the rest of their lives. Oh, you want them to eat grass fed steak so that they're healthy, they don't get fucking cancer. Oh, that Inflation rates probably like 20% a year. People say, oh, what's the inflation rate of housing? It depends. What house do you want to live in? The fact that the government has tricked people listening to this, that, that there is an inflation rate. Guys, wake up. I'll tell you the inflation rate. Tell me what you want. How nice of a steak do you want? How nice of a house do you want? How nice of a state do you want to live in? How nice of a car do you want? Do you think the beachfront real estate in Miami's inflation rate is the same as the shoe box in the suburbs of Illinois? Some shoebox condo, 400 square foot. What are those apartments called where it's your bedroom and your living room in the same room. You think they have the same inflation rate? They're growing in price the same. Don't buy into the cpi. Everyone listening to this wants a good life, a high quality life. They're entitled to that. That's human dignity. If you work hard, you deserve that. Fuck that. And the inflation rate for nice things is a lot. Now let's get to the joke. What's the joke? Jerome Powell's gauge on inflation was pce. Warsh's gauge is what he calls trimmed pce. I kid you not. I am not fucking with you. This guy is making up a new metric you'd Think this is satire. And I'm dead serious. The Federal Reserve and the way these guys talk, it's like you're a peasant. It's like you're uneducated. They go, the Federal Reserve's toolkit is simply outdated. In a world of technology and AI, we must resurrect and reinvent the tools we use to understand the world today. And they say, like that. And you're like, okay, that makes sense, I guess. I mean, yeah, the world's updated. When was the last time we updated these rules? And then you click the fine print and you say, this motherfucker's just trimming what are already inflated numbers. And the inflated numbers don't even tell the real story of just how truly screwed you are. If you want a high quality life, if you want a house with a yard in the sun, have multiple kids and a few cars, look at this. Look at the pce and then the trimmed. These guys, central planners, have no shame. This is why I do this show no bias. Nobody can tell me to shut my mouth. Look at this Trimmed mean. That's the innovation of the Federal Reserve. They're going to invent a new metric to try and convince you that, yeah, you want a nice house, you seemingly can't afford it. Yeah, you need a new car, you seemingly can't afford it. Yeah, you want to have more children, you seemingly can't afford them. Yeah, you want your wife to be able to retire and stop working, you seemingly need two incomes. Yeah, yeah, but that. That must be a you problem, because if you looked at the trimmed mean, inflation's not that bad. I again, this comes back to human dignity. Human dignity. This is apolitical. This is about dignity, human rights. I mean, this is laugh out loud funny. This meme by Quinn, who pointed this out. I read his substack. I think Quinn's great. I've enjoyed following his stuff. This hilarious. The Drake meme. 8.3% March PCE inflation. No, no, no, no, no. 2.9% trimmed. Trim that shit. These are not serious people. These people are a joke. Are a joke. All right, now let's pivot and chat a little bit about artificial intelligence. Because there is growth happening in the world, and the growth is AI driven. The AI stuff is cool. If you're not using AI, I don't know what you're doing. It drastically improves my life. I use AI all the time. I make this show with AI. It's really useful. It's fun, too, because the world becomes so much more accessible. Because all you need is ideas. Right. It really like I think it's going. I'm gonna give a talk in Prague about this. The knowledge workers, the mundane task is oh yeah, but I need, I need to hire a lawyer to draft a legal document. Yeah. But I need a finance person to model that out for me, you know, Now I pay 200 bucks a month and I don't need shit but my own ideas, my own curiosity. It's incredible. And you get better at using these tools. It's just the world is just in the palm of your hand when the marginal cost of intelligence and white collar skill work is close to zero. The marginal cost of intelligence and white collar skill work for me is $200 a month. The world is my oyster and I use the features where you talk into it and it transcribes your voice. So I go on these long walks in Chicago. I got myself a weighted vest and I walk for 10 mile walks hours and hours. And I'm just talking in, I'm exploring my ideas that span from diet to business to bitcoin to philosophy. It's brilliant. So AI is the real deal, great innovation. I think it's tremendous. I mean humanity's all about engineering a better world. That's the story of our species. And AI is the latest iteration of that. I'm a big fan. Now with that being said, let's take a closer look at how it's being financed because I think we're gonna run into some issues fairly soon. If you look at the AI financing relative to the dot com bubble. Let's go. That's everyone's favorite analogy, is the Internet. Okay? Because here's the thing, the productivity is not a lie. It is not a lie. It's all real. I'm not saying that numbers are inflated and the, and productivity is not real and the tools are bullshit. That's not what I'm saying. What I'm saying is 93% of US GDP growth over the last four quarters is tech investments. Okay? This is now bigger than the dot com bubble. Bigger. And it's not even about the bubble. You can look at the, you can see in 2000 the bubble. But then the Internet resumed. Yeah, sure, pets.com was worthless, but Amazon's not Okay. But the point is we are spending more on infrastructure. This is huge. One and a half trillion in it. Capex. That's nearly twice the dot com peak adjusted for inflation. So obviously when the dollar is getting debased so much, you have to adjust what you're measuring in for Inflation. But adjusted for inflation, it's nearly twice as big as dot com. Now this is where it gets interesting. Bear with me here. First of all, the story is you have all these big companies, Microsoft, Alphabet, Amazon, Meta, Oracle, these are traditionally massively cash flow positive companies. And their equities were so rich because they would take all their profits and they would plow it into stock buybacks, buying back their equity. So it was like a cheat code investing in these things because you invest in not only their productivity, but they take their productivity and they don't really invest in any new products or new innovations that are cost intensive because they're not, they're not hardware companies, they don't cost a lot. I mean capital light software businesses are the best companies in the world. They've been the success stories of the last 30 years because you process your payroll, you pay your cloud bill and you make billions of dollars at unlimited amounts of scale. And that was the story of these things for decades and decades and decades until recently. They take their profits and they're now plowing it into the real economy to build things. But that changes these businesses entirely because they are spending and investing real capital on a future. And so you have to now start assessing these businesses for return on investment. Instead of taking the capital and plowing it back into the equity, they're investing it in like real stuff, in commodities, in build outs, in infrastructure. If you do the math, assuming, even if you assume zero cost, there's this fascinating Financial Times article, I highly recommend everyone read it. Even if you assume zero cost, the implied ROI for the amount of money they're spending is negative for every one of these companies except for Amazon. Swear to God, I swear to you, if you assume zero costs, no opex, no labor, nothing, which by the way is obviously garbage. But let's assume zero cost. Pure revenue versus capex, still negative. To earn a 10% return on investment, these companies would need to find, guess how much revenue they would need to find in new annual revenue against the 1.5 trillion of current total revenue. Guess how much they would need for a 10% ROI? 2 to $5 trillion of new annual revenue. The math isn't mathing. How are they going to get paid back? There's not nearly enough economic activity. The total revenue right now is 1.5 trillion. They need to find 2 to 5 trillion dollars of new revenue a year to get paid back, assuming zero costs. And so what's my point? Let me get to my point. The point is what, what happens? Let's say that they're overspending. Let's just say they're spending a little bit too much. No problem. Rein in the spending. No problem. I'm not saying the world's going to end. It's going to be a day after tomorrow, be an apocalypse. That's not what I'm saying. But let's say they rein it in. Let's say AI capex slows even 4 to 6%. Let's say Zuckerberg comes out and says I'm slowing our spending down 5% because it's going to be really difficult for us to get a return on investment. And if everything that I just said played out, this would be the largest destruction of shareholder value ever by far. You're taking these multi trillion dollar businesses and just blasting an insane amount of capital intensity out without a return on investment. There's no way these companies are going to do that. So let's say they, they reign it in. They say, okay, we're going to cut back by 5%. Boom, recession, immediate recession. Why? 93% of our GDP growth is technology spend right now. And that's not right now like last week, that's the last four quarters. So this is the conundrum and this is why AI is now national policy. It is strategic to the United States. It's also security to the United States. My point is this is sovereign backed. There is no choice. Like Facebook is not doing. Meta is not building this out with pure economics in mind. They're not making rational free market decisions. They have a sovereign backing to beat China and figure this shit out at all costs. So the other thing that's been highly inflationary and highly stimulative is the amount of spending that these companies are doing in the real economy. And you'd have to think, well, this is becoming uneconomical. They're going to have to slow down. Oh, they can't slow down. They can't slow down because we'd go into a recession. And so these companies are either going to need some type of new policy, new new law, new legislation which gives them extremely cheap access to capital. So again, I think we're going to see a lot of banking, new banking legislation, easy leverage, ability to lever up and recycle consumer deposits to lend to the government, inability to lend unlimited amounts to these companies. Do you know what would be easier than investing real cash flow if you were Meta is if Jamie Dimon gave you a trillion dollar loan for free. But that's extremely inflationary. That's bitcoin to the Moon type stuff. So the Fed or the treasury are going to have to find the liquidity to help these guys out because we are entering the largest destruction of shareholder capital ever. There's no way they can get a return on investment unless their cost of capital comes drastically down. And so it's either, okay, they slow down a bit, we enter a recession and the United States loses. The AI race to China gets their ass kicked and we go through austerity or they print the money. Either way, bitcoin wins. But I think they're going to print the money. Does that make sense? So, like, read this Financial Times article. It's an interesting article and it just makes a very clear point that like, this is getting massive, even adjusted for inflation. The comparison to the dot com bubble is far from perfect. In many cases, it's twice the size already. And as a businessman, I run businesses like, how are you gonna get paid back? I don't know, like, if they start reining it in, like, let's say this is a free market and this is about capitalism and they have to live through and pay the consequences for any mistakes they make. Well, they better start reining in. Next earnings call, they better start raining shit in. If they start raining shit in though, it's a recession. Yeah. So anyway, and in here, here, here. You guys don't believe me that they're going to print the money. What makes me believe that? This chart makes me believe that when it comes to choosing the system or the currency, they choose the system. Look. This is the historical chart of the dollar's purchasing power. Would you say over the last. This is the last hundred years. Would you say over the last hundred years humans have been productive? I'd say so. We went from riding horses and having to go to bed when the sun went down. We created the light bulb. We drive cars, we're flying planes. We've got AI in the Internet and the iPhone. I'd say we're pretty productive, right? Well, why is our currency look like this? So it's not about whether AI is productive or not. The currency shall weaken, brethren. The currency shall weaken. Lest not forget that. Okay, let's check in on bitcoin, guys. Spade. A spade. We're getting our ass kicked. And as I say every single week, these are the moments you dream about. This is how you buy the dip. And I get it. I mean, there's a lot of kicking and screaming and I'm trying to come into this episode with good vibes. I get it. Okay? Our savings account is not performing Great. Right now, it is what it is. Let me tell you this. If bitcoin was going up 1% a day, every day, guys, you wouldn't have an opportunity to have an asymmetric bet on the future of humanity. Bitcoin would already be a million dollars if everyone had figured it out. The whole point is there's some pain to be endured. You're being compensated for the pain. I had a conversation with my dad, and he said, you know, it's so offensive that people say people that got in early to Bitcoin just got lucky. Fuck you. Do you know how hard it was before we got regulatory clarity, before any institutions adopted it? Do you know what it was like to adopt Bitcoin before fucking Coinbase existed? Do you have any idea? And what are you getting rewarded for? For being early. You are giving time, energy, and attention to. To a network that humanity needs. Because, mind you this, if nobody ever adopted bitcoin, it would be dead. No one would know about it, and we'd be stuck owning bonds. But no, people like you and I sacked up, understood it. Did our research, earned more than we spent, learned how to store our keys in cold storage, built companies like STRIKE so that humanity has a chance. That's what these moments are about. And you want to know the asymmetric upside that you get? You get paid to show up now. If you don't want to show up now, don't show up now. Show up. In five years, I'm sure that my fiance is going to want a big new house, and I'll sell you one bitcoin so that she can get five plots of land for all my kids. I'm happy to sell you my Bitcoin then. No problem. No problem. No problem. But you sit on Twitter all day, you say, oh, I'm a. I'm a dip buyer. I'm a stay humble and set stacker. Okay, well, Bitcoin's down 4% today. It's a bare market. AIs taking all of our attention. Our. Our crypto president doesn't seem to give a buy the dip, stay humble and stack sets. And the other thing I'm talking about, going on these long walks. Yeah, go on a walk, get some sun, have relationship, fall in love, be productive, care about something, have opinions, focus on your health. Come on. We are the stewards of the future. I believe that wholeheartedly. We're living through the greatest wealth transfer in human history, and we are the receivers of that wealth. It doesn't matter how much bitcoin you Have. You're on the right side of history. The receiving end of the wealth transfer. We are going to have a say about the future. Take care of yourself. Research, form opinions. Be curious. Come on, I'll grab you guys by the collar. Snap out of it. Enough of this sad, depressing mumbo jumbo garbage. Come on. I know it's tough. Life's hard. So what? What are you gonna do about it? Let me know when you're done crying and we'll get to work. Strike. I'm so. I'll talk about strike in a second. I'm so excited. We're shipping a ton of shit in June. We're gonna keep building, keep onboarding bitcoiners, because guess what? The thing's either going to zero or it's going to the fucking moon. All right? Decide which one you think and get to work. Wake up, put in the work, lower your time preference, Lift some weights, eat some steak, stack some sats. Come on. Come on, guys. Or don't. Or, you know, you can watch me move into my house in five years with a farm in the backyard. You can buy my SATs for a million dollars a coin. It's your choice. Literally. That's the other cool thing about Bitcoin. Peaceful protests. I'm not. You don't have to do anything, Tell you my opinion. I'm trying to look out for you. This is what I think is in the best interest of the everyday person. But if you don't, that's fine. You get Bitcoin at the price you deserve. Okay? Speaking of bitcoin, seasonality, just a heads up. Listen, over the summer, assets get less volatile. Why? Because people with money go on vacation. Okay. Bitcoin feeds off volatility. We know this, right? Okay. So why is summer usually low performing for Bitcoin? Because it's less volatile. Okay. And so June, July, August, September, these are traditionally not great months. Now you've got a conflict in the Middle east, straight A Hormuz, you've got Iran using Bitcoin, you've got AI, You've got a crypto President Trump who's trying to set up a strategic bitcoin reserve. You got a bunch of stuff. Can shit happen? Of course shit can happen. Will shit happen? I have no idea what he people say. Dude, you. You said the future was going to be a certain way, and it didn't turn out that way. Yeah. Hey. Fucking idiot. I can't predict the future in case I need to explicitly say that in a disclaimer. I don't Know what's gonna happen. What I need you guys to understand is sometimes the summers are low volatility. That's because rich people go on vacation. Low volatility means bitcoins typically not performing that well. It requires volatility for it to go up. Just by the definition of the English word. Okay, so my point is, work hard this summer. Stack sats. Earn more than you spend. Be careful. Do not expect bitcoin to perform well over the summer because it traditionally doesn't. Don't about it. Don't complain about it. Don't pout about it. Work hard. Earn your future. The time is now. Look at Everyone loves a color chart. Everyone loves a rainbow. Bitcoin is approaching levels where you would kick yourself if you did not buy the future. You is depending on the you today. Stack those sats going back to Bitcoin's implied volatility. Bitcoin VMAX implied volatility 30 day index. Look at this thing grind down. This is a look at the last three months. You want to see Bitcoin's price action over the last three months. A, a general trend in volume traded on exchanges. You see Coinbase's earnings, they got smoked in Q1 earnings. That's just because volatility is down. Volatility is down, interest is down. That's okay. Volatility is like entropy. It has to exist. It will come back. Take advantage of these moments. You told yourself you'd buy dips. You told yourself you would stay humble and stack sats. Go for walks, see the sun, fall in love, research. Lift heavy weights, eat healthy food, stack sets. There's plenty in life to be excited about or don't. Or, you know, download Shrek. In five years, my fiance is going to want something nice. Or hopefully I'll be a father. I don't know. Okay, enough. Enough of that. Rant me, take a sip of water. We'll do some. Grind my gears. Okay. You know what grinds my gears this week? It's a. It's a little bit of a mix. It's what grinds my gears is one. But it's also like, what scares the out of me? What scares the out of me is the fact that they are starting to say the quiet part out loud. And when they do it financially, it doesn't really scare me that much because I'm. I'm out here thumping my chest like, yeah, I told you so. Us bitcoiners, we knew it. Did you remember that blog post I wrote in 2015? I told you, but when they start doing it about our health. It's both and I told you so and oh, let me play this clip from 60 Minutes. Not from the local news, not from your high school journalist major. This clip is from 60 Minutes. Over the last 40 years, the United States has been exposed to something that our biology was never intended to handle. Energy dense, highly palatable, rapidly absorbable, ultra processed foods that have altered our metabolism and have resulted in the greatest increase in chronic disease in our history. Type 2 diabetes, prediabetes, hypertension, abnormal lipids, fatty liver, heart attacks, stroke, heart failure. From our food. From our food. Shit, that guy on 60 Minutes sounds like me. And that's the thing when it's about finance. When someone gets on Bloomberg and goes, you know, we might want some more hard money because they just keep printing fiat, you know, I'm on Twitter. Told you so, let's fucking go. We knew it. When they get on 60 minutes and they say, over the last 40 years, our species has been exposed to something so vile that our simple biological evolution cannot handle and it's killing us. And cancer and blood disease and heart attacks is caused by our food. It makes me run over to my family members, get that shit out of your mouth. You sound like a carnivore. So you know what grinds my gears? This. Look at this in 19, how the American diet has changed since 1970. And mind you, what happened in 1971? We started printing money out of thin air. Fix the money, fix the world. You, you break the money, you break the world. We are eating less since 1970. Americans are eating less. Potatoes, beef, eggs, milk, full fat cream, real healthy fats. What are we eating more of? Cooking oils, corn sweeteners, corn products, rice. But let Instagram ads tell you, what do you need? You need a corn rice bowl for dinner from sweet green or whatever. These fucking disgusting pleb slop. Look at global production of vegetable oil since the US Federal Reserve existed in the top right. Look at beef cow inventory, tailor off and decline after 1971. Look at our meat consumption after 1971. All we eat is hormone infested fat, fake chickens. And how does this not infuriate you? Infuriate you? Because you say, well, by golly, everyone feels like they're getting cancer now. Everyone's got a metabolic disease. Everyone's on antidepressants. Isn't this weird? Isn't it? It's science that your stomach and your brain have a physical relationship. So the fact that everyone has mental health disorder. Shouldn't we consider that there's something wrong with their stomach. Because if you look at the evolution of humanity to 200 years ago, 300 years ago, cancer rates were lower. Oh, no, no, no, no, no, no, no, no, no, no, no. That. Harvard disagrees with you. That's it. Harvard disagrees with me? Harvard says Cheerios are better for my heart than a ribeye, you know, on the box of ce. And you're gaslit and you're lied to for years. Your whole childhood. Who would I be as a man if I wasn't shoved with sugar? My whole childhood refined bullshit. Sugar. Only for these assholes to get on 60 Minutes and say, yeah, now that we looked at the details, yeah, no, our food's poisoning us and killing us. Is that a sorry? Is that an are you apologizing? Are you warning me? What the fuck is that? Let me tell you guys something, because what I should have put in here was the rise in religion that's happening right now. It is a religion bull market. And it's not any particular religion. All religions are seeing insane adoption, specifically from the youth. You want to know why? Because young people are trying to reimagine what the human experience is supposed to be. Because belief in institutions, belief in media, belief in government is gone. To get up on 60 Minutes and say, yeah, we double checked our math. You know what? We are killing you with the food supply. Sorry, it is our fault that you're fat, that you're diseased, that your aunt, your uncle, your cousin, your best friend died accidentally overdosed on fentanyl, has fucking antidepressant prescription and all sorts of health issues. Yeah, sorry. We told you to eat Snickers and Cheerios. Fuck. After taking a closer look, that was our fault. You. Are you kidding me? I mean, what chance does a young person have? They're being poisoned with their food. They're metabolically sick and they're indebted to their eyeballs. They're never able to own a home. They're never able to afford anything. Real wages are negative. Inflation is rising faster than their fucking income. Oh, yeah, sorry. Now that we looked, we were poisoning you this whole time. Ah, I'm sorry. Anyway, on to the commercial break. The NBA Finals start Wednesday. What the. How is this not like a national emergency? Get this food out of the country. Are we serious? Did you guys watch the same clip that I did that? Oh, yeah, we're. We're accidentally killing everyone with our food supply. Onto the commercial break. Victor Weminyama, Jalen Brunson. Wednesday tip off, 7:00pm Charles Barkley. What. It drives me nuts. It does. And, and I tweeted earlier, my rancher who I ordered. Let me tell you guys something. Let me. I order my food strictly from farms. Now, the founder of GitHub did a food study on what we consider on food supply. I think it was in San Francisco and included in that was like Whole Foods and even Whole Foods, which is like the brand of healthy groceries. You're paying a premium. Whole Foods is more expensive than Aldi, more expensive than Juul. Right? It's top tier grocery. All of the food sprayed with pesticides, none of the beef grass grass fed. The quality of the food was trash. You have a. It is impossible to be healthy in the United States. Impossible. And look at any metric. The growth of cancer, the gross of metabolic disease, the gross of clinical depression, obesity rate, the fertility rate, how many of our women are able to produce children. It's impossible. And so I only, only order from farms. You will not catch me consuming food from any of this plebs slop around me. I order from farms. I get my meat from Beck in Ballo. And guess what? They just joined Nostr. These are real people, real bitcoiners. They accept bitcoin through strike. They are on Nostr. This is free advertising I'm about to do. Because this shit these people got me up to get on 60 minutes. Be like, yeah, sorry, you were right. Cheerios and Snickers aren't as healthy as a ribeye. We were killing you. I mean, what the fuck is that? You can't make it up. I mean, you'd think I'm like, you think this is a skit crazy. I mean, it's terrifying that they're starting to say these things out loud. All right, this is Beck and Bolo. This is what I personally get. I get the chef box variety subscription. So I pay a little over 400 bucks a month. I get about 30 pounds of meat a month. And it's a variety. It's a hand picked variety. And they literally posted their first posts on Nostr. And I reposted them. And the guy, my butcher that hand picks my meat, replied to me and said, hey Jack, let me know what you like and what you don't like as I pack your next box. Fucking awesome. Bitcoiners strike customers, free ad. These guys don't pay me. I pay them for the meat. And guess what? It's. Today's a big day for my fiance. My fiance officially quit her fiat slave job. She's out of the matrix. She's quit that. Done Being depressed, listening to Fiat slave masters. And I have a Beck and bolo wagyu Tri Tip Beef 3 pounder on the smoker and she loves tacos. And so guess what my other one is. Miller Bios Farm. This is where I get my non beef stuff. So I get my dairy here, my eggs here, I get I. Even if you go to the bakery section, hot dog buns, I get. Let me show you guys. Got these einkorn sourdough flour tortillas. So I've got some tri tip wagyu beef from a bitcoin rancher that hand picks my 30 pounds of meat every single month. And this Miller Bio Farms is the healthiest you can get with all types of food groups. People say I can't do carnivore. I can't just eat meat every meal. That's fine. I'm having tacos tonight. All farm sourced. These people cannot debase my time and energy. They cannot disrespect my human dignity because I save in bitcoin and they will not kill me. I will be healthy, I will be happy, I will have children. They will be healthy, they will be happy. They cannot take that from me. That and anyone that says. Did you read the Harvard study? Are you sure you didn't listen to that economist? Did you listen to Steve Hanke and read what Harvard said? You should eat? Yeah. This is why religion is booming right now for the youth. Because we are done believing in and listening to any of your shit. You've lost all credibility. You've either deprived us of all our wealth, we put us in severe levels of debt or given us disease. If you haven't already killed us at this point, so fuck you. We think for ourselves. We use common sense AI research the Internet. We use technology to resource ourselves for our future. Fuck you. Fuck big corporations, fuck the media, the government. Fuck you guys. Fuck you. So those are my plugs. Go shop at these farms and there's plenty more farms. There's a lot of these farms that sign up to strike because they want to tap in with bitcoiners and they want to get into bitcoin. And so I try and be a customer of all of them. I mean I'm only 58150 pounds so I can't eat more than 30 pounds of meat in a month. But I will. If you are a butcher, you're a farm. Farm to table healthy living. And you have a strike account. You DM me, I'll give you free advertising anytime people bring up food and health on this Show. I will shout you out today. Beck and Bellow and Miller. BIOS farm. That's who I eat from. That's my dinner tonight. Can't even eat at Whole Foods anymore. Trash. Trash. All right, Strike. Another week, more proof of work from us. So this is what we shipped. A little snapshot. We tweet this every single Monday. We got target orders on the dashboard. So once again you can use strike on the desktop. You can log into your dashboard on any web device, even on your phone. If you want to use the dashboard on the web you can. Target orders are now on the web. Target orders are if you want to say I'm going to buy the dip at 65k. You can place an order for when Bitcoin hits 65k. Will buy the bitcoin for you at that price. So it's a good way to buy the dip. Lower loan minimums Bitcoin backed lending whether it's line of credit or a 12 month term loan, it's the most successful bitcoin product I've ever launched in my life. We keep trying to make these minimums lower so that these products become more accessible. We lowered our minimums in Oregon. We lowered our minimums in Connecticut. We lowered our minimums in Minnesota. Our minimums are typically $5,000 in these states where we get the license, we work with the regulators and we lower the minimums. Huge win. Our loans are for both consumers and businesses. If you want liquidity against your bitcoin and you don't want to sell the bitcoin, I personally live on our bitcoin line of credit. I live on these bitcoin backed loans. They're not for everyone. I'm not shoving it down your throat. If you don't want to use it, don't use it. But it's a great option. They're the fastest growing product we've ever launched. Most successful product market fit I've ever seen. 21. The mission remains standing up these operating companies, focusing on cash flow. I mean there's a lot going on in the, what do they call it, digital credit with these perpetual preferred. It's not actually credit. The perpetual preferred stuff. There's obviously I think Saylor and strategy continue to find, try and figure out how this is going to work for them. Maybe, maybe it'll work, I'm not sure. But it continues to just not be a strategy that we're interested in. I want to build the bitcoin company. I'm dedicated to building the bitcoin financial services institution with the Bitcoin balance sheet. If we're going to do leverage, we're going to do it responsibly. If we're going to do leverage, ideally we finance it with cash flow. So I know it's been a grind, but the grind continues. The grind continues. All right, I got a little bit of time for questions. It is a big day for my fiance, as I said. I'm so proud of her new chapter in her life. And I have this wagyu tri tip on the smoker. I owe her some tacos. So I got, I don't know, 15, 20 minutes for you guys, max. All right, let's see what's Dylan got for me today, Man. Look at this beard. Do I keep it? It's not up to me or you guys. She doesn't like it, so it's gonna go okay. Let's see. Question. If the US dollar is going to be devalued over the next 20 years, by what percentage is it? By half? It's a good question because it begs you to think about measured in what? Devalued against what? When people say devalued, they usually mean something like the dxy, which is like a currency index where the dollar is measured. But I don't give a fuck about what the dollar's measured against the euro. I don't care. I care about what the dollar is measured in. Something like bitcoin. So to be clear, the dollar has been devalued far more than half. Against bitcoin, right? Against gold, against housing. So it depends. It's the same kind of concept as inflation. I'll tell you how much the dollar will be devalued by. Tell me against what. And the trick is, the scarcer the thing it's measured against, the faster it falls. So obviously, if the dollar is measured against the euro and the pound and the yuan and the yen, well, sure, the dollar might remain decently strong. Ish. Because these things get printed as well at the same rate. What's unique about the time we're living in today is the dollar has to get weaker against these other currencies because the United States has to find a way to reassure a lot of its industrial base, its military equipment, ability to refine rare earths. All of that has to come back onshore. Through money printing, world reserve currency status and globalism. The United States has offshored everything. Everything except for financializing shit and technology. And so in order to bring that back onshore to, you gotta weaken the dollar, because that requires cheap labor. You cannot have local production of anything. If labor is so expensive, and labor is expensive, I mean, why is the iPhone not made in Manhattan? It's very simple. Because paying for someone to live in Manhattan and work in Manhattan mean rents $5,000 to live in a closet. There's a 0% chance. Why don't I just pay someone in Sichuan China to make the iPhone? Because the currency is so weak, labor is so cheap, and so the dollar's got to get weaker for us to onshore, but it's going to get a lot weaker against bitcoin than it is against the Euro. Question for Jack. I co host in. Oh, a co host on an AI podcast I listened to called Moonshots argued that he avoids Bitcoin because he believes AI will someday find a mathematical way to reverse hack hash functions. Thoughts? Yeah, I just disagree with them. I mean, if AI breaks mathematics, I mean, the world as we know it is gone. So, you know, here's the. Here's the problem with these type of people. You got to believe in something, okay? If you have the opinion that society as we know it is gone forever, it's going to evaporate and vanish, then, like, what are you listening to me for? Aren't you in a bunker somewhere with the pending threat that the world's going to explode? So, like, you, you have to believe in something. And do you believe in the US Government and everything they're telling you? I would find that to be an extreme at this point. If you're listening to this show and you believe that the government's got your back, I don't know what to tell you. But I mean, come on. Believe in mathematics. You got people on a podcast saying I can't believe in math. I mean, come on, you gotta believe in something. Austrian economics, mathematics, morals, ethics, principles. That's my. That's what I believe. I believe math is here to stay. You got people, AI people. All these tech trends are trying to sell you. They sell so much, right? Growth, growth, growth, growth. Going to take everybody's jobs. It's going to solve math. I mean, come on. At a certain point, too much. I think math is here to stay. Question. If the dollar loses value due to inflation, won't the rest of the world also inflate to preserve their export power? So on a relative basis, the USD ends up in the same place. Yeah, so that kind of piggybacks off of my initial answer on the first question. The dollar might remain relative to other currencies because they're printing. But will the dollar lose value? Against bitcoin. This is why I'm not saying like ditch the dollar for the euro. No, fuck all of those things. Stay humble and stack sats. Now the dollar is going to have to weaken against some of these other currencies so that the US can bring back. They have to re industrialize, have to no choice. And so you will see efforts like if you look at the dollar against Chinese currency, I mean seeing the US 10 year yields shoot up and the Chinese 10 year yields go down. Yeah, I mean we're entering a new era, no doubt. So. And the US government's way of devaluing might be through gold. We've talked about on this show. The second largest non monetary export in the United States over the last six months has been been gold. So you know, one way to weaken the dollar. If China's effectively backing their currency with gold, one way to weaken the dollar is just let the gold price run up. We'll talk about that in a future episode. But anyways, you're right, the dollar is going to have to get weaker against other currencies. But principally speaking you're correct. It could remain like relatively shitty with all the other baskets of currencies, but it could go down a lot in Bitcoin terms, which is what we care about because we own the thing that they can't print. A question for Jack. Since Bitcoin's value is not trustless, it has zero non monetary utilities. Are you worried it's being manipulated artificially, synthetically, like fractional reserve banking IOUs? I'm not sure I understand this question. Since Bitcoin's value is not trustless, I don't know what that means. It has zero non monetary utility. We've talked about this on the show. Money itself is not valued for functional utility. Money is the market good that you don't consume. So let's run through this example one more time. If you grow bananas and I grow apples and I want some of your bananas and you want some of my apples, great. We directly exchange. That is called barter. I'm exchanging my labor directly for yours. Say you grow bananas, I grow apples, I want some of your bananas. You don't want my apples, you want blueberries. Well shit, what am I supposed to do? All I have is apples. Well guess what? Being the bright humans that we are that can coordinate and communicate, I go find the person that's spending their time and energy producing blueberries and I exchange my apples for their blueberries and then I exchange the blueberries for the bananas. What Was money. The money was the blueberries. Why? Because I acquired the blueberries not to consume them, not to eat them. I acquired the blueberries to save them and then later exchange them for the things that I need. So the blueberries had value. Not because they were useful to me in a utility sense, not because I flew them or drove them or ate them. They were valuable because I was able to save them and later exchange them for the things. Things that I need. And so money is valuable to play a very particular role in the market. It is the market good that you're not consuming, that you're not eating, you're not wearing in jewelry, you're not flying in it, you're not living in it. That's why when we say some real estate is monetized, the real estate that people own but don't live in, I own this house I'm in right now, but I didn't monetize it. I sleep in it, I use it, I'm gonna have dinner in it with my fiance. So it's not about the utility function. In fact, the money's more valuable when it isn't also a utility. Because what we care about is its scarcity, its stock to flow. And so if you're taking a lot of the monetary units and you're actually using them in the economy, that makes it the stock to float. So how do I say this? Let's say there's 10 units of money and there's one new unit produced a year. Okay, so the inflation rate is whatever, Fairly low, right? One unit against a stockpile of 10. But let's say nine of the stockpile of 10 is used as a consumption good. That means the monetary stockpile is only one. So when I introduce one more that's highly inflationary, so the more of the units that are taken out of the monetary stockpile that are in the consumption stockpile is worse for the scarcity value. So Bitcoin's perfect. I can't see it, I can't eat it, I can't put it in jewelry, I can't live in it, I can't fly it, I can't drive it. Perfect. What can I do with it? Save it and then exchange it when I need perfect. Oh, well, no one accepts it. It doesn't matter. It's highly liquid in every currency. God forbid I have to sell it for dollars to then use the dollars for a split second, who cares? I can save it and it's sellable and it's liquid for when I need shit. Perfect. Money. And no, I'm not worried that it gets manipulated because Satoshi found a way to distribute bitcoin to the people. If bitcoin was concentrated at Goldman Sachs and Citibank and bank of America and the US government, that'd be different. But we already know that the coins are with individuals. Like there's 20 million Bitcoin that have been mined before. Like before, you know, the US government has fully stood up their strategic bitcoin reserve. Like, it's over. The supply is distributed. There's no cornering this market. Dylan, please give us the back end on why Sailor had to sell. Why did Sailor have to sell bitcoin? I don't, first of all, I don't know if I agree with the premise. I don't know if he had to. Also, I would just. Now that I'm talking about Michael Saylor and strategy, I would like to welcome all of the engagement farming Twitter accounts that clip me and imply that I'm talking shit. I would like to welcome all of the bitcoin treasury accounts. I would like to invite, welcome all of you to the show. I was asked a question about strategy and Sailor. I'm asking said question. I do that on this show. It's called Q and A. Welcome. Why did Saylor sell bitcoin? I don't know. You'd have to ask him. I do not agree with the premise that he had to sell bitcoin. Now, I am consistent with my opinion that I do not and would not want to do this perpetual preferred strategy. It doesn't mean that he shouldn't. It doesn't mean that it's not going to work. I'm not interested in it. Perpetual preferred means that this is non callable. It never converts into equity. So, you know, sometimes when you hear these guys talk about these instruments, they're saying the debt never comes due. So it's not even debt. It's equity. But it never converts. So you owe money forever. So to classify it as equity, to classify it as debt is potentially misleading. I get it. Cause you don't owe the principal back. I get it. But to classify it as equity is also misleading. Cause it doesn't convert into equity. It's perpetual. You owe money forever. So if you owe money at like 12% forever, that means you owe the principal back in eight years and then you owe like you can end up paying 10 times the principal because you owe it forever. It never converts. And so it could be a good trade if you raise like, if you're like, okay, I'm gonna raise a little bit of this to buy this bitcoin. And then, but it's a trade. But if you like, I'm gonna issue unlimited amounts of it. I mean, you're gonna have these really big obligations. You're gonna end up owing, I think strategies almost at $2 billion a year of payments that they owe forever. And the more of the stretch thing they issue, the more the payments. And so anyway, to answer your initial question, well, how are they going to pay that? They don't, they don't make $2 billion a year. So. And they owe the money. Obviously if they say like, ah, we're not going to pay you guys the money, my assumption is the stretch thing collapses and then the Ms. MSTR collapses. So it's all predicated on them coming up with the money. Well, how are they going to come up with the money? And so I think on his earnings call he was letting people know, like, hey, if I had to sell bitcoin, I'll sell it. Because, you know, relying on just selling the common equity is fine if the common equity is valued above, if it's accretive. But I don't think people understand that there's no guarantee that it's, that the equity is going to be valued how people want it to be. Like what, how much is Tesla worth? I don't know, it's a trick question. It's worth what someone's willing to pay for it. It's trading at like a thousand times PE right now. Could we wake up tomorrow and that corrects to 100 times penny? Yes, totally. What's it worth? I don't know. So like, do does a company have to trade at a certain level? No. And so if it doesn't, if it's not accretive, or let's say volume in bitcoin treasury companies just dries up and they're not as liquid, then it doesn't matter what the price of the stock is. If you can't sell billions and billions and billions of dollars of it all the time whenever you need, then that also is a problem. So then you got to sell the bitcoin. And so, you know, 21 raised a convertible debt instrument and Saylor raised a gajillion of these things, like raised so much money in that market and that's structurally different because it converts into equity and it's over or you pay it off and it's gone forever. You don't owe the money forever. So we'll see. But I mean, listen, Saylor, genius achieved Something that I think nobody thought was possible. He is a category definer. He's like, invented this category. He is the king of his domain. So I'm in no way throwing shade. And I genuinely mean that. People say, oh, I can see it in his eyes. He's full of you. You don't know me. I genuinely mean that. Like, there's no doubt in my mind. Sailor's got it all planned out and he's gonna figure, figure out whatever he needs to figure out. I don't doubt that. I. I also admittedly don't spend a ton of time, like, doing the math, like 11 and a half percent perpetual preferred forever. I mean, I can't. I personally can't owe someone billions of dollars a year forever. I don't make billions of dollars a year forever. I would not want that liability. It's that simple for me. That's just past my risk tolerance. I just would not want to do that. It's unclear to me how this story ends. That's not the type of businessman I am. I'm not a financial engineer. There's some financial engineering. I use leverage. I understand how to short the dollar in long Bitcoin. I've been doing it for almost 14 years. I do it on 21's balance sheet. I do it on Strike's balance sheet. I get that. I just. That what he's doing, that is a lot of financial engineering. I want to build more products in cash flow. So sorry, every time I talk about Saylor, I feel like I have to explain myself, which I probably should stop doing because just letting the haters dominate. But I just know the amount of clipping that's going to happen here. I'm going to wake up and cry to Dylan like, God damn it, why'd you give me a sailor question? But that's my honest answer. Why is. Why is he selling bitcoin? Why is he talking about that? He would. How else are you going to pay billions of dollars a year? And he's saying, I want it to be the dominant credit. I want to issue trillions of dollars of these things. If you issue trillions of dollars to these things, you're going to owe hundred hundreds of billions of dollars a year. So, yeah, if bitcoin goes down and stays down for a little bit, you don't have a choice. Yes. Sell it. I don't know. But what do I know? What do I know? All right, Strike, questions. Question for Jack. Would Strike ever offer some sort of multi sig custodial setup where the Customer would hold two keys and Strike would hold the other. For example, Love from New Zealand. Love right back at you. Would we ever do that? Yes, we would. 100%. I'll leave it at that for now. Jack, Love everything you do at Strike. It's made getting on zero a breeze. One Strike feature I'd love is to be able to see push functionality for bill pay. Some bills don't pull from the outside. Thank you for the support, first and foremost. All you guys that support me support Strike. We love you back. And it's not on the immediate roadmap, but it's something that we plan to tackle some way somehow. In June, Strike will be on Plaid. So if you use plaid and you log in, set up your bill pay and stuff, Strike will be an option there in like two weeks, hopefully. So super excited about that and that hopefully should solve your problem. Maybe not. We'll get to push though, to one day at a time, one future at a time. But hopefully the Plaid solution solves your problem. Question for Jack. Realistically, what are the chances Strike opens in Australia again? How much have the banks screwed you over? How much have the bank screwed me over? A lot. The banks and the regulators in Australia are a pain, but I'm not a quitter. I fight. Man of the people. We'll be back. It's a matter of when, not if. We do have a question back for all of the Aussies out there. We can turn on stablecoins again, which is USDT in Australia. It's, you know, in Africa and Latin America. Our customers love it, obviously, but they have the Naira, right? So I get why they like it. I'm not as familiar with the Aussie dollar and stablecoin adoption. If you guys would rather have Stablecoin and Bitcoin, I can turn that on, no problem. The banks can't get in the way there and then. Other than that, it's just going to be a grind working through all the banking. I mean, it's like Operation Chokepoint in Australia right now. So Aussies feel free to give me feedback on what type of products you guys would want as we just grind and try and figure it out for you. So we're sorry about that. No excuses. Running a business, it's my job to give you guys a good experience and when you don't get one, it's my fault. So it's my fault and we're gonna fix it. But it's certainly Australia is an interesting place right now. Hey, Jack. Strike question. Any plans for dual income Households to have the ability to both direct deposit into one Strike account. Keep up the great work. We're working on joint accounts. Joint accounts will be a thing in 2026. We're on it. We are on it. Hey, Dylan, question for Jack. Were you able to determine if Strike could support the selling of Bitcoin via BitKey in addition to buying bitcoin? We brought it up to the bitkey team today. According to. I've got the president of Strike who leads our products and in this little document helping me with these answers. She said we brought it up to the BitKey team today. So we're working on it. We will let you know what they say. My question for Jack, that's really a plea. I'm dying for a toggle between my personal and my business accounts. Pretty, pretty please. It is coming before the end of this month. That is a June thing. June. We're shipping a ton of shit in June. We should have a liquidation free loan. So if you want to open a loan and pay a little bit more on your rate, but no liquidation. Like it doesn't matter what the bitcoin price does. I'll never liquidate it. We've got that coming. Toggle plaid. We've got like four or five like legit amazing features coming. We also got some real momentum with the yield on cash. I don't know if that'll make it to June, but that, that's going to come soon as well, which is really, really exciting. What was the butcher farm? Okay, now these are other non monetary business questions. What was the butcher farm that you were promoting before the one I posted on NOSTR today. That was Beck and Bellow. I've been a customer. I don't know how many boxes I've gotten, but many, many months. Fuck every time. And I feel bad for him because I want to give them some promo. Every single time I want to say their name on the show, I forget it. But as soon as I click stop stream and I go into the living room, I'm gonna remember it. KNC Cattle. Oh, that's that big brain. I'm familiar with KNC Cattle. KNC Cattle company is another one that I've been a long standing customer of. They deserve my shout out. These guys are bitcoiners. These guys have a Strike account. I have not shopped here in a while though. Just a heads up. So if you're like, dude, the pricing, I. I don't know. Like I said, I try and support as many of these as I can, but it looks like they've got a ribeyes and summer sausages box. That sounds right up my alley, tell you that much. So this is another one. But it was beck and bellow. And then I do my non meat. Like dairy. Any like bread. The. Hold on. Miller's bio is so good. So, so good. And you place your orders. Make sure you get your orders in on Sunday and gets to your door. At least my door here in Illinois on Thursday. So they have fresh produce. You want apples, fruit, carrots, sweet potato. So. Oh, I have. I've been adding this to my meats. Some fermented kimchi, sauerkraut. Really good for your stomach. Chicken. These are my eggs I get. I. I just ordered because I just plow through these eggs. I love eggs. So good for you. I just ordered six dozen at once. I had three dozen my last order and I. I'm out. I. I ran out today and my next order doesn't get here till Thursday, so I had to up it. And they've got amazing raw dairy. So raw milk, raw cream, raw cottage cheese, raw kefir, raw organic ice cream. What else have I even like if you wanted to like, sometimes me and my fiance will do some sweets. Well, she loves sweets. I try and be as healthy as I can, but this stuff's. All of this stuff's great. Like nothing. None of this I eat and I feel blood loaded. None of this I eat. I feel gross or look gross. I mean, I'm fairly active. Sauna, lift weights, play sports, pickleball, golf. Or nowadays what the adults are doing. So I was snacking on. I'll show you what I was snacking on. These bark, salty bark thins. But this is just real chocolate. Chocolate coconut ghee, Celtic sea salt. All of it's just so clean. Fresh from the farm. So good. So good. And you just. You spend a month taking care of yourself and you're like, holy. All of the. Like, I was born depressed and I have this. That it just. All of it evaporates. You realize like how blessed we are to be alive right now, working on bitcoin, using AI So highly recommend. Is that it? I. I saw a few more questions from Dylan, but I also have to go. Let's see. Okay, last one. Can you put us on to how you use AI and what your setup is? You mentioned spending 200 bucks and using the voice feature. Yeah, maybe we'll do that next episode. But I primarily use Claude. My Claude is about 200 bucks. Whatever the. Like, I don't like getting limited. That So I have like the Claude, whatever the max personal subscription is, and then I do have a whole setup. The CTO of Strike is. He's the best. Tom. Tom and I have been working on bitcoin stuff together for six years, seven years. And Tom is an AI wizard as well. Bitcoin and AI wizard. Quite the valuable fella. And so he's helped me with my AI setup. And honestly, I can walk you guys through it. It might be better for him to walk you through it. Maybe we do like a Strike open source thing where we publish some of how we use AI at the company and how I use it and I get Tom's help. That would be super valuable for the Internet. It's a good idea. All right, I'm out of here. Much love. Appreciate you guys hang in there, all right? Try to bring some positive vibes. It's okay. Summertime, sun's out. Don't use too much leverage. Don't borrow too much from your future. Earn more than you spend. Lower your time, preference, value, relationships. Do some research. Think for yourself. Lift heavy weights, get some sun. Go on walks. Eat a good high quality meal. Order something from the farm. Give it a try. We're going to be okay. I'm all right. It's either going to zero or it's going to into a billion. Okay? The. The time between the price, between not that important markets either try and scare you out or wear you out. You'll be okay. Hang in there, all right? I'll talk to you guys next week. Peace and love. Take care.