The Dan Bongino Show - The Bongino Brief - Apr 17, 2021

Episode Date: April 17, 2021

The dirty little secret about government debt. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Dan Bongino. Welcome to the Bongino Brief. I'm Dan Bongino. I've got three stories in a nutshell that are related. A story about inflation. A story about our national debt absolutely exploding. And to be fair, under President Trump, President Bush, it wasn't just Obama and Joe Biden.

Fairness matters if your integrity matters. And a story about Bitcoin. Well, they all share one big thing in common. Let's get to story number one first in this headline, and I'll explain. CNBC, consumer prices rise more than expected, pushed by a 9.1% jump in gasoline. Ladies and gentlemen, consumer prices are blowing up. Have you seen the home prices down here in Florida and other hot markets? We're looking for a new house, folks.

We need a bigger studio. The home market down here in Florida, listen to me, is insane. If you've tried to move down here, you know exactly what I'm talking about. The price of homes down here, it's not even insane. It's beyond insane. It's like Joaquin Phoenix Joker insane. It's not like Jack Nicholson Joker. It's totally Joaquin Phoenix insane. Consumer prices are through the roof.

The price of food, the price of gas, the price of commodities, the price of gold. Folks, you can't print a boatload of money every single day, billions and billions of dollars being printed and digitally created out of thin air, chasing the same amount of products and not expect the prices to go up. Let me get to headline number two. Again, I'll explain why these are related in a minute. U.S. budget deficit, CNBC. U.S. budget deficit jumps to a record $1.7 trillion this year. By the way, I read a story, the GOP is putting together a commission

to study the budget deficit. I got an idea. We don't need a commission. We're in a lot of debt. Just stop spending money. How does that sound? How is the debt exploding? Debt and deficits. Deficits are annual. The national debt is cumulative.

How is it that we keep spending money we don't have? Where are we getting the money from, folks? If we don't have the money, the federal government, because they haven't taken it in in tax revenue, then how are we spending $1.7 trillion more than we actually have? Because we're printing it, folks. The Federal Reserve, under all kinds of names, quantitative easing, all kinds of BS names for things, are essentially printing money like it's a Monopoly game. If you did this, it would be called counterfeiting. Our debt is exploding

because we are trying to monetize it right now. Let me get to my third story because I want to explain how these are related. Coindesk, Bitcoin, and Ether are steady and near record highs as all eyes are on the coinbase listening uh listing coinbase just went public at an ipo and it exploded the value of bitcoin cryptocurrencies are exploding everywhere why would that be why would the value

of a not easily reproducible currency gold you, you have to go mine it, right? You can't just, when the United States government wants to create money, the Federal Reserve just does it for them. You know how they do it, folks? They type it up on a computer and they digitally create new money. It's really that simple for them.

When you want to create other forms of value storage, like gold or Bitcoin, you have to mine a Bitcoin, which takes a very long time and a lot of computing power. If you want to create new money in gold, you have to go mine it, which is really hard. That's why gold and Bitcoin have maintained their value and have gone up in value while US dollars have plunged. How do we know that? Because it takes a whole lot more U.S. dollars to buy a Bitcoin now than it did 10 years ago. Why is that? Because we are

printing a lot of money, which makes what? Which makes the money in circulation worth less. Folks, this is not hard to figure out. How liberals and some rhino big spending conservatives don't get this, I don't understand. If when you worked back in the, say, 70s or 80s, say you're retired. Say when you worked, there was $100 in circulation. There were trillions, but just for sake of even numbers. It was $100 in circulation. You worked and got one of those dollars. That dollar out of the $100 in circulation was worth a lot.

It was worth one out of a hundred. If you now print the hell out of money and we now have a thousand dollars in circulation, you have 10 times the money in circulation because you just printed or created more on a computer. That same dollar you own now is only one of a thousand, not one of a hundred. So the dollar you earned back in the day was worth one out of a hundred, is now only worth one out of a thousand.

But what if that dollar you earned back in the day has been sitting in your bank account earning almost no interest whatsoever because of the low interest environment? You probably should have spent it when it was worth one out of a hundred. Probably should have bought some gold or something a little more stable or some real estate or something because that dollar is worthless now. And as that dollar's value goes down, the value of the everything that's not printed as much as a dollar, Bitcoin, gold, real estate, it's hard to build houses, goes up and up and up. Folks, this is only going to get worse. This inflation problem as we start printing more money and your dollar used to be one of 100, now it's one of 1,000, soon it'll be one of 10,000, then one of a million when it's really

worthless. Everything you worked for is going to be gone. Because you can't just print new money at home. That dollar you earned in the 70s, which is one of a hundred, is the same dollar sitting in your bank account now worth one out of a thousand, soon to be one out of a million. Everything you worked for is being whittled away because they're trying to monetize their debt. The federal government's realized a long time ago,

federal governments around the world, they will never pay back the money they owe their citizens. The United States will never, listen to me, they will never pay back our national debt, closing in on $27 trillion. We don't have the money. So what do they do? They just print the whole bunch of money and monetize it.

In other words, they make the debt we owe worth a lot less. Because if your money's worth less because they printed a lot more, so is the money the federal government owes. That's the dirty little secret about government debt. They want this to happen. The more they print, the less they have to pay back later. Because the money's worth less and so is the debt. And that's why things that are hard to create

like Bitcoin and gold are going to continue in the future to be worth more and more and more.