[0:00]But when you give money to people, what do they do first? They spend it immediately. When you give people paper currency which doesn't mean anything, and you don't buy assets with it, you just buy watches and cars and stuff like that, you're going to get squashed in the future. We are on an ocean, and US is the slowest sinking ship. Every ship is sinking, and they are faster than the US. till 2008, US actually was doing pretty good in terms of money printing and stuff. They were the Feds were not getting involved as much. So, but then the crisis with the housing crisis happened. They're giving all these ninja loans, no income, no jobs, everybody gets their own stripper has like eight loans.
[0:36]So then that caused everything to crash. And then, they had to bail people out. So what they did at that time was they built the banks out.
[0:44]So that actually didn't cause a lot of inflation because there was a big hole, and then they just filled that hole, and then the banks, you know, got covered, and then slowly people got out of it. But what happened in Covid was, they did not bail the banks. The banks were not in trouble, right? But they shut down everything. So they had to bail people out.
[1:01]But when you give money to people, what do they do first?
[1:04]They spend it. They spend it immediately. They spend it. Most people, right? But, you know, if we have money, we put it in some stocks, we put it in your investments and stuff like that. But most people spend it. That that causes hyperinflation because everybody's going out and spending money, and like what what Vivek was saying, we started doing that for a long time, even though the economy was good. That is not a good move. You can't have stuff be very good and also print money and say they're going to help the poor by doing that, because once you do that, asset prices will will inflate, hyperinflate.
[1:36]That's why I remember those during those times, I'll be like calling you guys like crazy, just give me freaking money. We need to buy stuff and everybody was mad. Vivek was mad, um, I don't know if my family was mad, but everybody was mad because what I was doing was, I was reading all these things and I could see this like this storm like going to go nuts, but nobody was seeing it. So I was like, you guys are nuts. So I start buying stuff in that time and then, you know, the asset prices have gone up. So I that's the one of the reasons that it's happening, is because we print a lot of money and then we build a lot of people out.
[2:08]And when you give people paper currency, which doesn't mean anything, and you don't buy assets with it, you just buy watches and cars and stuff like that. You're going to get squashed in the in the future because you're you're you're continuing to make money in paper, and you're not holding on to assets that's denominated in that paper. So what I do is what what why to come back to what you were asking about, why are you so bullish on the on the US is, I'll give you a very quick analogy.
[2:34]We are on an ocean, and US is the slowest sinking ship. And I chose to be on the slowest sinking ship. Every ship is sinking and they are faster than the US. But I'm not I never said US is not sinking. But it is the slowest sinking sip by by a far, doesn't make sense?
[2:51]Okay, Vivek, I have a question. Not to take over his interview, right? Okay. Um, I agree with the US being a sinking ship. I disagree with the idea, the blanket statements that every ship is sinking. Yes, I am with you.
[3:07]I am with JK on that. I don't think every I don't think China is sinking per se.
[3:11]Name a country which doesn't have debt.
[3:14]It's not about debt. You know, can you can you structure that in a different way? What is your definition of sinking?
[3:19]I'm only talking about like the um like the countries as an empire. Think of it like an empire and they're printing money and they're spending, right? And they have debt, and they print more money to get out of debt and then there's a deficit problem.
[3:33]Debt is okay. Deficit is a problem. Yeah.
[3:36]There there is okay. So, so I'll throw it back at you guys. Do how much debt to GDP does China have? I looked it up last night, so I I I don't know this like, you know, like I always know it.
[3:46]Yeah, I don't know. Just random guest. What is it? What is it? 89%. So, they're not in a deficit like Vivek is saying. What is it?
[3:52]It's it's close. It's it's close. It's it's close and what do you think US is at?
[3:57]What is it? 120. It's not like, oh, we're winning, but it's not it's bad but it's like it could be worse. Do you know what's that Japan at? Close to 300% of the GDP and they've been like that for decades. What has happened to Japan? I don't know. They're still there. They're still making cool cars.
[4:15]They're still making anime. But they still suffered stagflation for over 30 years. Yeah, they have a they have an aging problem. Yeah, they have an aging problem. They're not going to grow that much. Like, yeah, they have they have a different set of issues.
