The Pomp Podcast - #1417 Phil Rosen & Anthony Pompliano | ALERT: US ECONOMY HELD HOSTAGE

Episode Date: October 3, 2024

Phil Rosen, the Co-Founder of Opening Bell Daily, and and Anthony Pompliano, Author of ‘How To Live An Extraordinary Life’ and CEO of Professional Capital Management, discuss interest rates, port strike, reactions to the VP debate, bitcoin, asset performances, and future outlook.   ======================= Buy book: https://www.amazon.com/Live-Extraordinary-Life-Anthony-Pompliano/dp/0857199927/ ======================= CrossFi is the Apple Pay for Crypto. For the first time in history, anyone with a web 3 wallet like Metamask can spend crypto through a physical or virtual visa cards anywhere in the world where Visa is accepted. Be one of the first to get your hands on a CrossFi card and a prize pool of $3 Million Dollars by joining and participating in their testnet today: ⁠⁠https://xfi.foundation/users⁠⁠ ======================= View 10k+ open startup jobs: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://dreamstartupjob.com/⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Enroll in my Crypto Academy: https://www.thecryptoacademy.io/

What's up everyone? This is Anthony Pompliano. Many of you know me as Pomp. You're listening to the Pomp Podcast, which is my effort to find the most interesting people in the world and sit with them for hours while I ask questions in an effort to learn. So it would mean the world to me if you would subscribe to the show on your favorite audio platform, watch episodes on YouTube, and tell your friends and family about the podcast. My goal is to help millions learn from the world's most interesting people. So let's get into today's episode. What's up, guys? Bang, bang. I've got Phil Rosen today. He is the co-founder and editor in chief of Opening Bell Daily. In this conversation, we get into all of the current

events. We talk about interest rates. We talk about the dock worker strike. And you're definitely going to want to hear what I got to say about that one. Then we also talk about what's going on in the VP debate. What were our reactions? What did we like? What do we not like? Did we change our mind about the candidates? Who do we think might be president? And why made the VPs actually be more important on top of that we then talk about bitcoin some of your guys favorite asset and we see why is bitcoin going up or down compared to gold what about volatility how should we think about correlations and does anything that has happened in the last week or so change my mind about bitcoin your mind about bitcoin or any other assets this conversation is wide

ranging we do our best to try to inform you with all of the little ideas in our brains and so i would love for you to do two things i'd love for you to share this episode with friends family ex-boyfriends or girlfriends. And also I would love for you to leave some comments, tweet at us or leave comments on YouTube and let us know what you liked, what you didn't like, what you agreed with and what you didn't. Thank you so much. And here's my latest episode with Phil Rosen. Anthony Pompliano runs Pomp Investments. All views of him and the guests on his podcast are solely their opinions and do not reflect the opinions of Pomp Investments. You should not treat any opinion expressed by Pomp or his guests as a specific inducement to make a particular

investment or follow a particular strategy, but only as an expression of his personal opinion. This podcast is for informational purposes only. Today's episode is brought to you by CrossFi. CrossFi is the Apple pay for crypto. For the first time in history, anyone with a Web3 wallet like Metamask can spend crypto through a physical or virtual Visa card anywhere in the world where Visa is accepted. No more exchanges or middlemen. Just link your wallet, get your card and start spending today. CrossFly card transactions have already been successfully processed in New York, Los Angeles, London, Dubai, China, Japan, and over 20 other countries. Be one of the first to get your hands on a CrossFly card and a prize pool of up to $3 million by joining and participating in

their testnet today. You can go to xfi.foundation slash users. Again, that's xfi.foundation slash users. Go check it out today. Okay, Pomp, I want to talk to you about this stockbroker strike. To me, this is the biggest economic story right now because it impacts inflation and the job market and GDP. It's going to impact our holiday shopping. Right now, there are thousands of longshoremen on strike on the East Coast and Gulf Coast, and it's closed down 36 ports. and JP Morgan thinks it'll cost the economy roughly $4 billion a day. The workers, some of whom are making $250K a year, they want two main things. The first is a 77% pay raise over the next six years and a ban on automation. What do you make of the first point, the pay raise

here? Well, I was reading Opening Bell Daily and I saw that some of the workers make more than doctors in New York, I believe is the stat. And so that's crazy. That's insane, right? If you want the definition of bureaucracy and the negative dark side of unions, that's pretty much the prime example. The dock workers are making more than our doctors. How is that possible in terms of what is actually the productivity of it? What it tells you is that it's not a free market. There's no real competition. What they have essentially done is they have manipulated the market to protect themselves from competition. If there's no competition, that means there is bad service. If there's bad service, it is bad for America.

And so instead, if they were to say, let's have a free market competition, who can do this job the best and the most cost effective? Most of those people probably wouldn't have their job because somebody is going to offer the service for less than $250,000 per person. And so, again, that doesn't mean that these people are wrong. It doesn't mean that these people are bad people. It doesn't mean that they're even doing a bad job necessarily. What it does mean, though, is that the union has manipulated the market, has pushed out

any free market kind of influences, and it has essentially used negotiating tactics over free market capitalism. And so people may say, well, they're not getting paid enough or they're not doing this or they're not doing that. Well, let me tell you what they're really scared of, which is your second point. They're scared of technology because guess what? What we are learning is that people that are nerds that sit behind a computer can write an algorithm to do that job.

And that really, really rubs a dock worker wrong because they say, what do you mean you're going to get a robot to do my job? I've seen the robots. they can go they can pick up boxes they can put them down they can move they can walk they can do all this stuff this is the rudimentary you know kind of like the the worst that this technology is ever going to be is right now it's only going to get better and so if today i can already see well the dock worker may be faster a little bit more you know kind of flexible right they they might be able to kind of do things based on experience but they got to go home they gotta

go to sleep. So if that robot works 24 hours a day versus the dock worker who works eight or 10 hours a day, who actually moves more things? Who actually is more productive? Even though the robot is slower in a five minute span, the robot may be getting close. I'm not claiming that it is actually more productive yet, but the fact that it's even remotely close tells you five years from now, the robot's probably going to be superior. And so I wrote this morning and I said, listen, people fighting technology is not a new phenomenon. I get it. I understand where the ILA is coming from. If I am in charge of protecting the workers, I'm yelling and screaming about no technology. I'm yelling and screaming, pay us more money. I'm yelling and screaming about

healthcare benefits. I'm yelling and screaming about safety and all these things. It ain't going to stop history because the candle makers fought electricity. The horse owners, they fought cars. The newspapers fought the internet. You just go down the line. It is disruption. It is technological progress. And ultimately what it is, it is competition. And if there's one thing in this country that we have realized is that there are certain parts of the economy where people are deathly afraid of competition. And if you are afraid of competition, you have only one option to complain because i always say compete don't complain but what we are watching is if i'm scared of competition there's only one other option yell and scream and try to negotiate and do all

this stuff so if you are in their position they are being rational actors they realize they can't compete with technology they realize that this is probably the last big negotiation that they're going to have before the robots take their jobs so grab the bag right get paid as much as you possibly can like i i understand why they're doing it they're still wrong it's still insane it's still stupid and so i think that uh there is executive power where the president united states can say get back to work you are now threatening the u.s economy this is actually a national security issue and it is an economic security issue and so what happens in professional sports there's been walkouts players have said hey we're not going to play you ever watch the

movie The Replacements? We're not trying to teach people to play football here, right? There are crane operators, they're moving stuff, like all this stuff. There is some skill to it. But five years, definitely 10 years from now, there's going to be technology to do this stuff. And so what ends up occurring is we're actually getting a peek into the future. Humans are going to be replaced by technology, which means that human can do two things. Grab the bag while you still can, and then you better pivot and you better get retrained in some other skill or you're not going to have a lot of options. And so I think that it is this like very simple idea, you know, on one hand, which is $4 billion a day. I think it's annualized 0.3% of GDP every week that they're

shut down, you know, kind of that whole argument. But then there's this very complex thing of like it's humans versus machines. And if you want to outlaw the machines, let me tell you, all your telling me is that the machines are going to win because the machines, they ain't scared of you. The machines aren't, you know, lobbying, right? No humans in the field, right? The machines are machines. They're just going to go compete. And so I do think that there's a very serious conversation in this country around, are these people attacking America? Is this an attack on America? We don't think of it that way, but think about what is actually occurring. You have a strike that is being positioned as workers leaving the job because they want higher pay

that's actually pretty american that's been happening for a long time in this country but if you watch the video of the union chief who basically thinks he's a gangster saying he's going to cripple the american economy i've literally seen videos of terrorists saying that before. And so when you look at that, you say, listen, they're not the same, obviously, but if you end up trying to negotiate from a position that is not good faith, if you negotiate from a position that says, I am trying to hurt you unless I get what I want. Chapter in the book can't be rational with an irrational person. And so right now, basically, you have a few thousand Americans who are willing to potentially cripple the U.S. economy

so that they don't have to compete with technology. I don't see a single headline in the mainstream media positioning it that way, because I could rewrite every headline and I could say, America attacked from within. Nobody's writing that story because it's not something that is actually conducive to what the news organizations want or is a popular talking point. But that's what's happening. There's an economic war being waged, workers versus the economy. And the workers are basically taking the most extreme version of their leverage.

And they're saying, we are going to cripple you. I'm not making it up. He literally said, we're going to cripple you. Okay, well, what should the response be from the U.S. that would be adequate? it. If somebody says, let's say that a country threatens you and they say, we're going to cripple you, we're going to kill you, we're going to destroy you. In violent conflict, you punch back, right? Strength brings safety. Right now, if we have somebody say, I'm going to cripple you and everyone just sits back and says, okay, well, let's see how long this could go. Let's do our

little spreadsheets and see, well, there's $4 billion today, another $4 billion tomorrow. Well, there's 0.3% of GDP. Instead, you have this weird thing of if the Maritime Association was to punch back, how many journalists would be out there saying they're trying to cross the union, they're trying to hurt the workers, they're trying to whatever. But nobody talks about it that way. And so I think that it's a really weird dynamic where everyone is all, it's almost like this, like a game, but no one takes it seriously. There is literally going to be a line from the decision to go on strike to hire goods, to economic pain for American families. Who is it? How many, how bad is the pain? All that stuff. Nobody knows. But what happens if medicine skyrockets

and someone can't afford it and they die. Is anyone going to write a story that says that the longshoreman killed X person? Nobody thinks of that. I'm not even saying it's going to happen, but what I'm saying is it's possible. If this goes on for a month, two months, and let's say that medicine goes up triple in price

because there literally becomes a scarcity of it