Investment Principles: How to bet against government overspending

Summary:

Phillip discusses how to bet against government spending. He draws parallels between the 2008 financial crisis and the current state of government debt, emphasizing the importance of understanding financial statements and debt accumulation. He also explains how bitcoin was created as a solution to protect against government debt default and inflation. He highlights the transparency and limited supply of bitcoin as factors attracting investors seeking to safeguard their assets. 

Chapters

 

| **Timestamp** | **Summary** |
| ------------- | ----------- |
| 0:00:01 | Introduction to the podcast and topic of betting against government spending |
| 0:01:29 | Introduction to Wealthbuildingmatesimple US newsletter |
| 0:02:09 | Explanation of the movie "The Big Short" and understanding debt |
| 0:04:23 | Debt accumulation in the system and the transfer to governments |
| 0:06:27 | Increase in money supply to absorb debt and manipulation of interest rates |
| 0:08:02 | Explanation of market movements and the tipping point |
| 0:10:36 | Introduction to bitcoin as a solution to government debt default |
| 0:12:14 | Comparison of bitcoin to the banking system and gold |
| 0:15:21 | Money gravitating towards bitcoin as protection against inflation and defaults |
| 0:17:50 | Bitcoin as the arc to protect value in the next economy |

Quotes

"No, debt is debt, whether it's on an individual, whether it's on a company, or whether it's on a country."


"If you look at an individual's income, if their expenses are more than their income and the expenses are growing at a higher rate than their income is growing, then you can just do the math and say, at some point in time, they're not going to be extended credit anymore and their financial system blows up."


"Debt had been accumulating in the system for a while, really since the 70s, when we came off the gold standard, which was kind of a US default.  We defaulted on our promise to exchange dollars for gold for our international trading partners who stored their gold here.”

"We need a way to short government debt that will protect our money when that happens."

"For a period of time, it appeared as if there was no problem because interest rates stayed relatively low for a long period of time. You're able to suppress and manipulate energy for a period of time, but for every action, there's an opposite and equal reaction."

"The tipping point is when the majority of the market comes to realize something, then you see the movement in the market."

"The fire (overindebtedness) never went out.  The fire transferred to the government balance sheet."

"Bitcoin, from what I understand and believe from what I'm seeing from my research and where I put my money, is the arc that's attracting more and more money to protect from all these governments having to wash away these debts through massive defaults and inflation."

Social Media Handles 

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Phillip Washington, Jr. is a registered investment adviser.  Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies.  Investments involve risk and, unless otherwise stated, are not guaranteed.  Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.