The Best One Yet - 🌋 “Volcano-powered money” — Bitcoin City. Netflix’s secret numbers. The Fed’s stock whisperer.

Episode Date: November 23, 2021

Imagine a city that runs on Bitcoin, only uses Bitcoin, and is powered by a volcano? El Salvador just revealed their plan for that. Netflix just launched a website that shares numbers it’s never revealed before (spoiler: Squid Game was watched for 2.1 billion hours). And a key reason stocks are near record highs is because Fed Chairman Jerry Powell — and he just got invited back for another 4 years.$NFLX $BTCGot a SnackFact? Tweet it @RobinhoodSnacks @JackKramer @NickOfNewYorkWant a shoutout on the pod? Fill out this form:https://forms.gle/KhUAo31xmkSdeynD9Got a SnackFact for the pod? We got a form for that too:https://docs.google.com/forms/d/e/1FAIpQLSe64VKtvMNDPGSncHDRF07W34cPMDO3N8Y4DpmNP_kweC58tw/viewformLearn more about your ad choices. Visit podcastchoices.com/adchoices Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. And this is Snacks Daily. It is Tuesday. It is Tuesday, November 22nd. Live from New York. Yeah. It's Nick and Jack. Here we are.

Really in person. This is the real thing. Went to a Rangers game last night. Nine goals. Yeah. The winning goal was scored with 0.4 seconds left. Literally, that has never happened in a soccer game. It doesn't have many hockey games either.

It went right through the 5th. It was pretty amazing. But this pod is the best one yet. Live pod from the ice. For our first story, Netflix just revealed a secret on how long you actually watch Netflix's competition. Like, really? Wishes they'd get that to themselves. For our second story, El Salvador just unveiled plans for a crypto capital city. We know what you're thinking. And yeah, it's going to be powered by volcanoes. Of course.

For our third and final story. Why wouldn't it? Are you wondering why stocks are at record high levels? Can we quote the who on this? Meet the new Fed chairman. Same as the old Fed chairman. We won't get fooled again. We're in person, baby. But before we hit that mix, can we talk about Gunther? I thought you never asked if we could talk about Gunther the Sixth. It is technically Gunther the Sixth, which is a mouthful. Gunther the Sixth. He owns a house in Miami worth $32 million. First of all, you're doing fantastic.

Second of all, this used to be Madonna's house, but now it is Gunther the Sixth's house. There's a beautiful fireplace in this home with a mantle. Above that mantle is a painting of Gunther the Four. That's Gunther the sixth great-grandfather who lived nine long years. Gunther has a private jet, which he uses to fly to Milan and Bahamas. Where he has other homes. There is one correction here, though. As long as he doesn't roll around in poop or pee on the rug.

It's a caveat. Oh, yeah. Gunther's a German Shepherd. Gunther is actually, according to NBR, the world's wealthiest dog. Elon Oprah Gunther. Gunther has a trust that is valued at $500 million. Yeah, we know you're wondering how to get this money. Well, he inherited that money from his great, great grand dog's owner.

Classic. She was a German countess, a human being. who love German dogs. And he is now a trust fund puppy. That's how this goes down. And now all that money is managed by this dog's caretaker. Who is making sure that the private chef of Gunther serves him kibble in a platinum bowl on a daily basis. And make sure that the fleet of jet skis are unrideable by the dog.

He doesn't have a posable thumb. Here's the news, Snackers. He can't. Gunther the sixth is selling his home in Miami. That's the news. But Jack, what's the takeaway for our buddy Gunther? Live your best life. Uh-huh.

Even if it's a dog's life. Did you just bring it full circle? I don't know. I think it. Let's hit our three stories. You're tuned in the snacks daily. Snacks about to hear ain't food. It's air candy.

They don't reflect the views of the Robberhood family. It's all informational just so. You know, we're not recommending any securities. Nope. It's not a research report or investment advice. Not an offer or sale of a security. Right. Snacks is digestible.

Business news to you. Robohood Financial, LLC, member Fenra slash SIPC. For our first story, Netflix just revealed, All right, get called this a secret. And the secret shows how much more Netflix is watched than the movies and theaters or the other stream. Okay, Jack, I was under the impression

that if you announce something as a company on a Friday night, it's because you don't want any... Yeah, you don't want anyone to know about it. You think it's bad news. You think it's bad. Well, apparently Netflix decided to drop something big on Friday night. They put up top 10.netflix.com. Yeah, that's the website.

Again, kind of an awkward name for a website. And it's in this website for the first time, Netflix is telling us how many hours each show gets watched on Netflix. A huge deal because Netflix has never told us how many hours every show gets watched on Netflix. They're changing the rankings for their top 10 shows from most views, which is at least two minutes, to hours of viewing. Which now yields a whole brand new thing on every Tuesday night, which could become a new Netflix show. Every Tuesday, they update the results from the past seven days. And they show us what are the 10 most things watched on Netflix?

in 90 different countries. Netflix is so, like, proud of this that they actually hired a separate independent company to audit the results and, like, vouch for the fact that they're not fivic. Ernst & Young. Yeah. They're playing the role of, like, UN Peacekeeper who goes into Iran to check uranium supply. It's pretty dark. I mean, that are, like, kind of like the Swiss doing the timing at the Olympics.

They feel the need to vouch for these numbers independently because they're so insane. Snackers, to quote Mel Brooks, if you got it, you've found. flaunt it. These numbers are staggering. Just take SquidGames' numbers. Can we talk about Squid Game for a second? This isn't another stratosphere, galaxy, whatever you want to go in? Universe.

Let's go with Universe. Squid Game was launched on September 17th. In the past two months, it was viewed for two billion hours. Okay, let's convert that into humans for a second. That means that the show Squid Game on Netflix. The entire show, all nine episodes, was viewed 258 million times. All nine episodes. of all, 258 million times, that's more than the number of Netflix subscribers.

Which is awkward. So there's definitely some password sharing going on. Is that a one or an exclamation point? Hey, Tuck, text me your password so I can watch Squid Game on your account. So, Jack, let's say there are two to three people per household. What does that mean exactly? That means over a half of a billion people watched every minute of all nine episodes of Squid Game. Over half a billion.

Okay, I just finished it, by the way. Episode nine's worth. Oh, yeah. I'm not one of a half a billion. Jack's on episode three because he crouched in the shower and was shaking and pouring water on himself. I got 12 minutes in. Yeah. It eats away your humanity.

And that was a good life decision, Jack. I support you on it. Now, it's not just movies like Squid Game. No, it's not. Red Notice is the latest movie. Yeah. And it was viewed more than the rest of the blockbusters in the movie theaters. Okay, we're talking about a new Netflix movie starring the Rock and Galgado and Ryan Reynolds.

Team Squatrack, what we call. And they're starring in this latest Netflix hit, Red Notice. Just in the first week, Red Notice was watched by more people on Netflix. Then James Bond was, the latest movie in theaters, according to Lightshed Research. And that's just one week of Red Notice compared to months of James Bond being in theaters. I did watch every minute of James Bond and thought it was terrific. I mean, he's that suit. I'd watch him the whole move.

But Snackers, Netflix is not Uniseth. They're not showing us the numbers outside of the top 10. And Netflix is not showing us the details like male, female, age location breakdown of viewers like TV typically does. Netflix is selectively showing us something they've been keeping secret. So sneaky. So that we understand the power and reach of their top hits. But at least the secret is out there.

So, Jack, what's the takeaway for our buddies over at Netflix? Netflix now has an advantage with A-list actors. It offers them relevance. Okay, Jack, this point in Leo's career, he's got plenty of money. He's not doing Titanic 2. He wants his art to be relevant. Well, movie theaters have the whole red carpet cachet. They do.

But Netflix has the audience. Netflix can give you international, intense, and instant audience. That is relevance. And Leo could ask other streamers, HBO Max, Apple TV Plus, Disney. How big are your numbers compared to Netflix? Well, they haven't shared that information. But according to data from this summer, it looks like the number two streamer is less than half the size of Netflix in terms of hours viewed. When it comes to hours viewed, that is one way to measure relevance.

And Netflix, by that measure, blow you. away the competition. It's more than twice as big as the competition. Relevance could be Netflix's secret sauce to attracting the big stars. And the big stars make the content that can crown Netflix as king. For our second story, this one's wild. Bitcoin has dropped almost 20% in the last week. Perfect timing for the country to announce the world's first Bitcoin city. Come again, sir? Oh yeah. The world's first Bitcoin city. Okay, Snackers, for a moment, just picture this. A new city. next to a volcano using digital currency powered by that volcano. This fall, a Jerry Bruckheimer film.

Coming to a theater near you. No, this is a real story about El Salvador. It's definitely starring the rock. Snackers, as a reminder, we covered El Salvador in September. We did. We did. We became the first country to accept Bitcoin as one of their legally accepted currencies. Right, because they got a 40-year-old president, and he wears a backwards hat, and he loves crypto.

He's also done some anti-democratic and authoritarian things. He has, but instead he wants you to turn your head and focus on Bitcoin City, which sounds charming. Bitcoin City is his planned brand new city. It would be a beachside city next to the Conchagua volcano. So here's the plan. Using heat from the volcano, true story. They're going to create electricity to power Bitcoin mining. We know you're thinking, how are they going to do this? Geothermal power. Of course. Because America runs on Duncan. Bitcoin City is going to run on lava. Yeah. Oh, and a key point here. No greenhouse gases when it comes to volcano power.

That's good because that's a problem for Bitcoin mining. Except there are a few greenhouse gases when the volcano erupts. If the volcano. Yeah, you just have to ask like Dr. Grant about this. Dinosaurs. Did we look up if this is a dormant or active volcano? I feel like it was active. Bitcoin's price would have jumped a lot more yesterday. This planned city, all the details are planned. The city will be shaped like a circle.

Of course. So that it appears like a coin when you see it from a above. Yeah, because, you know, why be subtle about this? The central plaza of the city will be shaped and carved and designed to look like a Bitcoin symbol. The B with the lines going. Again, because why be subtle about this? So that's the plan for President Buchanan. That's what's on paper here. But Snackers, when it comes to a pitch deck, there is one question every single investor asks, how are you going to pay for this thing? One big IOU. So not volcanoes. No, but a volcano bonds. Yes. Great term. That's what's going to pay for this.

a volcano bond. Next year, Snackers, El Salvador's government is going to issue a $1 billion bond. So El Salvador is effectively borrowing a billion dollars and they're going to pay a six and a half percent interest rate to the investors who buy these bonds. And they're going to spend half of the money investors give it. So $500 million to construct the Bitcoin City. Yes. And then they're going to spend the other half of that billion dollar bond. Another $500 million to just buy more Bitcoin coins. The government's hope is that that $500 million investment, in Bitcoin today is going to soar in price and give them plenty of cash to repay the investors. So funny thing Jack and I noticed in this here, Pitch Deck, after five years, they've had some

pretty optimistic projections about what Bitcoin's going to do. Their forecasts are that Bitcoin is going to hit $1 million per Bitcoin in five years. Checking the numbers here. Bitcoin right now is at $55,000, $56,000. So they predict it will jump by, is it 19,000 percent or 1900 percent? It's a lot of thousand percent. 20x. The volcano is looking at this and like, what's going on here, guys? Oh, and by the way, Bitcoin City is going to have no income tax, no capital gains tax,

and just a 10% flat sales tax. Oh, and yeah, every house has volcano views. So, Jack, what's the takeaway for our buddies over in El Salvador doing Bitcoin City? Bitcoin depends on faith, which is just like the U.S. dollar. Okay, Snackers, while you're listening to this pod, take a second without a dollar bill that thing is backed by the full faith and credit of the U.S. government. For a long time, it was backed by more than that. Yeah.

It was backed by literal golden bars. We're talking gold, actual gold. That we held at like Fort Knox. Physical gold. And the Federal Reserve Bank's vault. Your jewelry, same gold. But today, and in fact, since the 70s, it's just been backed by faith in the United States of America. And this is the great similarity that Jack and I see between Bitcoin and dollar bills.

Both are powered by faith. now, Bitcoin's rise and fall in price happens to correspond with its rise and fall in number of believers. You got Matt Damon, you got Tom Brady, you got Spike Lee. All of them are believers, all have been touting their faith in Bitcoin and cryptocurrencies on TV lately. Bitcoin City is just another expression in faith. I kind of love that name. Although a lot more theatrical. So someday Bitcoin's value may be driven by its daily use and acceptance as a typical currency. That's the dream of many crypto enthusiasts. It is. But until then, its value is driven by faith. For our third and final story, it isn't just the president who's on a four-year term.

It's also the head of the Federal Reserve. The head of the Federal Reserve doesn't get elected. He gets picked. There we go. And the latest Fed choice by the president makes the stock markets happen. Here's the big question, Jack. Which monogram are you going to use? The Federal Reserve Bank of the U.S., America's Central Bank or the Fed.

It's a rare club. People with three names. Eminem. Okay. Marshall Mathers. Yeah. Slim Shady. Okay.

You got Wayne Gretzky, the great one, and I don't know, Wayne. Now, the Federal Reserve has arguably more impact on the economy and the stock markets than anybody else. If so facto, Mr. Jerry Jerome Powell is the most powerful person in the economy. And he's been the chair of the Fed since 2018. Yeah. But his four-year reign comes to an end. It's scheduled to come to an end this coming February. Okay, boom.

We get the news. President Biden wants Jerry Powell for four more years. was the news yesterday. And progressives wanted somebody else. They did. They wanted the other frontrunner who was focused more on bank regulation and using finance to control climate change. But here's the thing. The president appoints the Fed chairman. The Senate approves the Fed chairman and that approval is expected of Jerry Powell, the existing Fed chairman. Here's why Wall Street just celebrated. Yeah. Jerome Powell has been a watchful guardian for the stockmark. Like the hero that Gotham deserves right now, but not the one it needs.

Two crucial times, Nick. Markets have struggled and Jerome Powell has saved the death. Snickers, Nick and I found two specific times where he put a cape on and came in to save stock markets. In just the last four years, Jack, can we go back to 2019? Yes, the economy was piping hot pre-pandemic. Early 2019. Stock markets were jumping.

So Jerome Powell did what he was supposed to do. He increased interest rates. This is like textbook, how to be a Fed Chairman 101. It was the prudent move. It was. He cooled the economy down and he encouraged people maybe not to invest in stocks as much, but to put money in savings. Okay, then we had to change.

Stocks started falling maybe a little too much. So Jerome Powell kind of freaked out and totally backtracked on his policy. He reversed his policy to make sure that stocks would instead stay high and wouldn't fall too much. He made sure stocks were happy. And then the same thing happened in 2020. 2020, the next year, the pandemic shows up. Stock markets crash as the world starts quarantining. economy start shutting down. So the economy hit the couch and what did Jerome Powell do? He saved the day

for stock markets with the largest money printing, economy juicing, monetary stimulus ever. He pumps this thing up with enough juice that you think it was on a cleanse. And now how many times do Nick and I talk about stocks that are way above their pre-pendemic highs? At record highs. Well, Jerry Powell and his stimulus strategies are a key reason why. So Jack, what is the takeaway for our buddy over sitting in the Fed chair Jerome Powell. There's a monetary tradeoff between growth and inflation. Snackers, as head of the nation's central bank, Jerry Powell has always focused on growth. He's given the economy tons of money.

Plenty of money. So that anyone can borrow or spend or start a business or invest or invest in stock. That loose money policy of his, that helped push stocks to record highs in the middle of a pandemic. But this loose money policy is also a key reason we have so much inflation right now. This is like why your late night chicken wing order costs shockingly more than it did a year ago. The Fed's moves to boost growth have also boosted inflation. And it's hard to have one without having the other tip. But Wall Street takes comfort that Powell has been growth first in his thinking so far.

Because growth first is stock market first. And stocks want a stock market first guy on the job. Like Jerry. Jack, can you whip up the in-person takeaways for us over there? Netflix just revealed hours, watched data for the first time for their top shows movies. It's offering star relevance. Other streamers just can't.

Bitcoin City is the latest pro-Bitcoin move for El Salvador. Yeah, it's also another expression of faith in the future of the Bitcoin. Former PE exec, Jerome Powell, is getting four more years as Fed Chairman. Investors are happy because Jerry has been growth first. Now, time for our snack fact of the day. This one sent in by snacker Will Shane across the pond all the way over in the Netherlands. Rota Router is America's largest plumbing company. Great name.

I mean, they also do sewer and drain services, but run with that name. There's a popular myth I'd never heard, but apparently Will has. That the day after Thanksgiving is the busiest day of the year for plumbers. This is like that awkward joke that one kind of member of your family is trying to fit in, like says at the end of the meal and no one really is everyone's uncomfortable. Well, Roto Router, I'm a little uncomfortable. Well, Rota Router just announced the day after Thanksgiving. Is their busiest day of the year? Yeah.

They confirmed the myth is actually a reality. Geez. Wow. Let's just leave it at that. By the way, Snackers, Jack's in my last part of the week is tomorrow. So if you've got a snack fact for it, we want you to submit one. Send us an audio file. We got a link in the notes of this episode for you to click on and submit yours. In the meantime, the big question we'll leave you with. How much Bitcoin does Gunther the Sixth the dog have?

Probably too much Bitcoin. Snackers, Nick and I'll see you tomorrow. Cannot wait. If you know, you know. And before we go, happy birthday to Snacker, Eduardo, Kara over in Norman, Oklahoma. And Corrine McGee in Philadelphia, PA. And Michael Machie turning 29 in celebrating in New York City. Happy 30th to Mark Fitch in Charlotte, North Carolina.

And Matt Caldwell, have a great birthday across the river in Brooklyn. Happy 55th to Shannon Saltzman in Dakota Dunes, South Dakota. That's a great name. And Sam, enjoy the birthday in San Francisco, please. Congratulations to Jay Wu, who just got engaged. Yeah. Wycofty Jersey. See some ring picks, and Alex D.

Congrats on the dream job at Under Armour. Swick that sweat. Happy birthday to Trish Ferguson in Tuscaloosa, Alabama. And Jazzy Mejia is kicking off freshman year over in Worcester Mass, just outside of Boston. Happy two-year anniversary to Angela Tamwin and her partner in Elk Grove. Two years. This is Jack. Nick and I both own some Bitcoin. Nick owns Apple and I own Netflix stock.

Robin Hood Snacks, Newsletters, and podcasts reflect the opinions of only the authors who are associated persons of Robin Hood Financial LLC and do not reflect the views of Robin Hood Markets, Inc. or any of its subsidiaries or affiliates. They are meant for informational purposes only and are not a recommendation to buy or sell any security, cryptocurrency, or investment strategy in any account. This is not an offer or sale of a security, not a research report, and is not intended to serve as the basis for any investment decision. Any third-party information provided therein does not reflect the views of Robinood Markets, Inc., Robinto Financial LLC, or any of their subsidiaries or affiliates.

All investments involve risk, including loss of principles, and past performance does not guarantee future results. Robin Hood Financial LLC, member FINRA SIPC. That was so good. That was so good. That was really great. Oh, man, there were highs, there were loves. We're laughing.

We were crying.