Capitalist Investor

Tariffs, Crypto, and More, Ep. 299

• Strategic Wealth Partners

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Welcome back, savvy listeners of The Capitalist Investor! In this episode, Diamond Hands D, Tony, and Cool Hand Luke dive deep into a wide range of topics that are sure to spark discussions around your next dinner table or boardroom meeting. If you missed it, fear not! We’ve got the top 5 hot topics covered for you right here.

1. The Impact of Tariffs: President-Elect Trump's Ambitious Plans

Diamond Hands D kicks things off with an insightful discussion on tariffs under President-Elect Trump. The proposed 20% tariff on all imports and a hefty 60% on Chinese goods are shaking up the market. Business chatter around these tariffs has surged, doubling in comparison to the trade war with China back in 2018-2019. The conversation highlights worries around inflation and the long-term impact on revenues and job creation in the U.S.

Key Takeaway: The potential for these tariffs to create jobs and boost domestic production is counterbalanced by the risk of increased inflation and supply chain disruptions. What does this mean for the average consumer and investor? Only time will tell.

2. Department of Government Efficiency: A Bold Move for Fiscal Responsibility

The episode then transitions into the newly proposed Department of Government Efficiency, a brainchild aimed at slashing government spending. With Elon Musk rumored to be on board, there's talk of trimming a trillion dollars annually from the budget. The hosts discuss the controversial expenditures that could be cut, including funds allocated to seemingly frivolous projects.

Key Takeaway: This department could be deflationary by reducing wasteful spending, but its success hinges on meticulous implementation and overcoming political obstacles.

3. Cryptocurrency Craze: The Future of Bitcoin and Dogecoin

Turning the spotlight on cryptocurrency, the crew delves into the rally in Bitcoin and Dogecoin. Bitcoin's current bull run is drawing comparisons to previous surges, and there is speculation it could hit the psychological barrier of $100,000 per coin. Tony and Luke's personal experiences and strategies with crypto investments provide a relatable and educational angle.

Key Takeaway: With institutional interest and potential government involvement, the future of Bitcoin and cryptocurrencies continues to look promising but remains highly speculative and volatile.

4. Campaign Expenditures: Trump vs. Harris

A fascinating segment of the episode centers on campaign spending. Diamond Hands D reveals that Trump’s campaign ran on a tighter budget compared to Harris, who seemingly spent lavishly on endorsements from celebrities like Beyonce and Oprah. The discrepancy in campaign management offers a window into their different strategies and priorities.

Key Takeaway: Efficient allocation of campaign resources could be indicative of broader fiscal responsibility, influencing how each administration might manage the country's budget.

5. Sporting Showdown: Mike Tyson vs. Jake Paul

In a lighter yet equally engaging topic, the hosts preview the anticipated boxing match between Mike Tyson and Jake Paul. With Tony leaning towards Jake Paul for his youthful vigor and marketing genius, while Diamond Hands D considers Tyson's legendary status, it's a clash of generations that's creating buzz in both the sports and investment worlds.

Key Takeaway: The fight symbolizes more than just a sporting event—it’s a commentary on the impact of social media, celebrity influence, and generational shifts in public interest.

This episode of The Capitalist Investor packed a punch, from economic policies and government reforms to the speculative yet exciting world of cryptocurrencies and cultural events. Stay informed and get ahead by tuning into the full episode for more in-depth discussions and expert insights.

Until next time!

Let's go. Hello and welcome to this week's episode of the Capitalist Investor. As always, you have me, Diamond Hands D, and we got the whole crew here together. Cool Hand Luke, Tony the Tiger. What's going on, boys? What's up? Well, you know, Diamond Hands D, man. Got some bitcoin, Got some. Got some crypto going. Got some diamond hands, I'll tell you. I mean, I don't know if your diamond hands was more about crypto or NFTs back in the day. Well, I'm still Diamond hands on those NFTs. No one wants to buy cement hands. And those are illiquid assets. Not by, not by choice. Those are illiquid assets. Talk about some. The dead heads with my buddy last night, actually. Really? Oh, yeah. Oh, man, you should have chimed in. Who? Eric? My buddy Craig. Okay, okay. Met before. Deadhead's a type of nft. Oh, is it? Yeah. Deadhead. Yeah, yeah, no, it's. I'm kind of a dead head. I like, wonder if the apes are doing well. I wanted to check on that to see if there's any movement and stuff on them. I'm sure there is because it was the most popular and most probably most expensive nft, but I don't have time for that nonsense. They're not 350 grand. Right, right. The, yeah, the, the, the, the, the worst ones are not worth that anymore. Right? Yeah. All right, what are we talking about today? We're talking about what? Tariffs. Doge. The Department of Government Efficiency. Dogecoin crypto. Yeah, you can sling dogecoin in there if you, if you'd like, because we're going to get right into crypto after that and then a couple fun facts and we'll leave that for, for the end. Mysterious. All right, tariffs. All right, so fun stuff. So, you know, the high level intro level to tariffs is that President Elect Trump wants to have a 20% tariff on everything imported and a special 60% on China. Now, there was a living China. China always. You know, I guess back in this first term it was interesting. Somebody did an analysis and said that there was a couple free passes on if you donated to his cause. Yeah. So I don't know if some of these people were smart, like, hey, I'm going to donate to Trump and he wins. Maybe, maybe he won't have to pay tariffs. I don't know. We'll see. But the sentiment has gone parabolic. And what I mean by that, it was. There was actually a small article from our, one of our research firms today about obviously the tariffs, the, you know, the third quarter earnings have gone and passed. So there wasn't any chatter about that because it was all pre election stuff. The post election chatter is more Google Analytics and things like that. And it is parabolic. It is probably two times the chatter from companies than there was on the trade war with China back in 2018, 2019. So there, there's a lot of worried people out there. Why? Because they're worried about revenues, things like that. And I think what the average person should really be worried about is it inflationary. Question mark. A lot of these tactics could be coming from Europe because that's who's going to be most affected. Because there's no tariffs on nearly any European, you know, companies right now. And if they're all going to get slammed, yeah, they're worried there's probably some little poop in their pants right now. Right. It's a very technical term. It is very technical. But we have to remember, like, historically, I saw some metrics that there's an 80% chance of another spike in inflation. 80% of the time, whenever inflation goes over 6%. So here's where I think, like, I don't want to say it this way, but that's how I feel. I feel like Trump's going to get a raw deal, he's going to get inflationary and within three months and be like, look, he's not doing anything. And all of this stuff, it's like, again, it's this huge moving ship that you can't, you know, cargo ship, like, can't stop it on a dime. So at the end of the day, and you know, the tariffs are meant to build jobs, you know, help build America. And it's tax revenue, you know, and there's going to be more tax revenue because employees are going to be employed. They might even get a raise because there's more things being built in the United States, there's more overtime, there's all these things. Right? And then businesses are going to pay more in taxes because they're profitable, because there's more jobs and money and items being built in the United States. And then you have the tariffs on. That's the hope, right? No, you're right. The hope is that companies move out of China, they move out of these places and come to the United States. The problem is it takes years upon years for that transition to happen. This is not like a flip of a switch. And all of a sudden you have manufacturing jobs back in the United States. You have, you know, the clothes that you wear not from China. It takes years for that to happen. So my point is with that, are companies actually going to transition jobs over here? Because if the perception is, oh, this is only going to be a four year thing with Trump and afterwards we're going to get somebody else in there is not going to tariff things, we're going to keep our manufacturing over there, Are they going to move it over? This has to be a long term plan that they implement. So when you talk about the inflationary aspects, of course it's going to be somewhat inflationary if this happens. But if you turn off the spending spigot that Trump's trying to do, the rebalance the budget, we're going to talk about the efficiency department. If you do all of that, it might actually offset the inflationary pressure of the tariffs. It's something to consider there. Yeah, yeah, they could for sure. So go ahead, Derek. I think the purpose of these tariffs are at least being shown because it is a negotiating chip in a lot of cases. And that's exactly what's happening right now. Everybody's scrambling. They're like, all right, well what's really going to happen? What do we really have to do? Who do we have to donate to, whatever the case may be to, you know, not face some of those pressures? But yeah, you hit the nail on the head. It's a, it's a, it is also a risky proposition because of the short term ramifications that we could see. Yep. All right, so, well, that's why you're. Seeing the bond real quick on this point. That's why rates have gone up. This, I think the tariffs are maybe the sole reason rates have gone up. And I think the bond market's actually wrong because of what we're about to talk about with the efficiency department. Yeah, well, efficiency department could be deflationary. That's right. Right. I think the bond market's wrong. I think that Trump is going to be more. I was initially under the kind of thought process that Trump would be more inflationary than Harris because if they do keep the spending spigot on all things equal, you lower taxes, you put on tariffs, you deregulate things like you get a firing economy with equal spending habits in the government. So if you take away the spending habits, though, because he's been very outspoken, more than I thought, about balancing the budget. Efficiency department, Elon Musk. I was not expecting that from Republicans because Republicans have always been the culprits of the same problem when it comes to spending habits my entire life. So if that Actually happens. You're right. That is deflationary, and bond yields will go down. And he said, you know, he's outspoken. He wants the Federal Reserve to cut rates, and he wants that to happen. Yeah. And, you know, but Jerome Powell came out and said, I'm not listening to him, and I'm not stepping down, and I'm not. I'm gonna run my playbook until his term is over. Right. And it sounds like he's not gonna have a job after that, but you're right. So, like, there's whispers that, you know, with the, the, you know, Elon's with Trump, like, nonstop right now. Yep. That is insane. Because, I mean, you're, You're, You're. You got all of these business owners, and I'll even tack in Vivek with that. Yeah. And they're all business owners and they're smart with money. Like, look. Look what Elon did with Twitter. Went in, chopped 80% of the staff. And it works just fine. It's working pretty good. Right. You know, it still turns on and pumps out information. But they're already. They're already. There's already whispers that there could be a trillion dollar annual, like, cutting. Like, like that's how much cutting. They can cut a trillion dollars out of all this stuff. Stuff. Oh, yeah. And. And I saw something on Twitter literally last night about some of the nonsense stuff that has been spent on. The top five things that came up in this article that was ran out in front of Congress was 20 grand for a drag show in Ecuador, 30 grand for learning the secret language of butchers. Yeah, right. 30 grand for learning the secret language of butchers in Paris. $750,000. Or, I'm sorry, 700. Yeah. $750,000 to fix the fire alarm in the New York Metro Opera.$350,000 to look into AI smart toilets. Shouldn't that be like a. What do they. What do you call. No, no, no. I mean, let, like, let a toilet company figure it out if that's. If that's needed by the public, not our government. Yeah. Like, what do you call that? Let the free markets determine. That's right. Right. 660 grand on the impact of COVID on Russian women. Like, there's, like, over a billion dollars of what I just spat off almost 2. And that's just stupid stuff. So there's. There's got, There's. There's definitely meat. Well, back in 2019, when Trump was in office, before COVID he had. He ran a deficit of $1 trillion right. So right now we're running deficit of $2 trillion. So $1 trillion. That's a good progress. We have another trillion to go budget, you know what I mean? Well, we're going to find out the doge and then the dogecoin. So going into crypto, you know, dogecoin. What? I was almost a dogecoin millionaire, by the way. I. I was dumb and I had a lot of dogecoin. Not dumb, actually. It was very smart. But I had to buy my house. So I sold it. Because the mortgage company wanted you to be liquid. They don't want you to all your assets to be in crypto and stuff. They proved basically that you had the funds to buy the home. So I sold it and the next day ripped 400%. It was like the next day I had half a percent. I had half of 1.1cent dogecoin. Next day it went to 1cent. So like it literally quadrupled from where I had it almost. And then the next week went to 50 cents. So my 25 grand I had in there would have been worth like $3 million. So I would have held it like two weeks. I wouldn't have bought my house. I could have bought my house five times over. You. You wouldn't. With cash. You wouldn't, you wouldn't have sold it. Yeah. You wouldn't have thought. You're like, I know. You become a billionaire. Hold on. So of all the asset classes that are ripping after the election now is one of the largest ones is crypto, specifically bitcoin. And before I start talking about this, I do own some Bitcoin through ETFs. And so just want to put that disclaimer out there. But bitcoin as of this episode is 90. You have $90 a coin. Now again on Twitter, sphere. This is what I do it let right before I go to bed is clogged my mind with all this stuff. But if you take a look at past bull runs in crypto, and that was like 2016 Covid, you take a look at and you put it up next to this bull run. Yep. And it's got a. It's got Runway. If you think that the past will. You know, past performance indicative, future returns. Correct. If you feel like, you know, like this trend always happens, then there's definitely another three to four month Runway. So just my two cents and I'll throw it to you guys is I think hundred. A hundred thousand dollar a coin is the non technical number of where we're going to stall out. Because I think it's just a. It's a psychological number that people will either not buy, they might sell. So with that being said, you know, you know, with me saying that bitcoin's either going to 70 again or 200 it so but like, I just think that 100 is where this rodeo stops, but that's around 12% from here, so. I agree with that. I also agree. And it's going to 200 no. And know the history, after the bull run, there's usually a 50 to 70% correction. Yeah. So personally, my family and myself, you know, I bought it at 4, sold it at 40, 10x my money bought it again at 17, sold at 69. So I missed out on 25 more percent from where it's at now or whatever it be 30%. I will rebuy it again when it gets below 4. It's going to probably a million dollars in the end. It probably is. It's either going to million or zero. I think I've been outspoken about that. It's either going to get. So what's going to happen is Trump, if he really wants to do bitcoin, good. And crypto huddlers or whatever you want to call them, if he wants to actually get involved with bitcoin, he needs to convince Jay Powell over there to add it to the balance sheet. So they're talking about a hundred, what, a hundred billion dollars of purchases into that. Do you think that'll happen? I do, I do. What do you think? Yeah, some point. I Do you think our government's gonna buy bitcoin? Well, I think it's a hedge against our own monetary system. I think it's very smart actually to do that because the US dollar in the debt tract where we're on, there's gonna be a flight to some sort of new asset class or there's gonna be a flight to new money. And the last thing we want is that new money being the, you know, Japanese, you know, whatever yen or the Chinese yen or Japanese, whatever. Like the last thing we want is US to use other currency. That's a world reserve. So what's going to happen is if we, for example, buy bitcoin and this is kind of thought to be the new decentralized. Even though it's not let fact we're adding to like the balance sheet, the Federal Reserve just means we're centralized now, but it's going to basically create a new monetary system and that's a hedge against our own system. And that's a good thing. And the government would like to do that. I mean, that's either a different currency, gold or bitcoin at this point. And I don't think the. The government doesn't own gold anymore. Right. We're off the gold standard since 1973, since Nixon. Yeah. Now we have a bitcoin standard. Yeah. What do you think? D. Well, yeah, you know, I every. I agree with everything Luke just said there. But, yeah, I think, you know, I think it's important what Trump says to. For, you know, America to. To lead the way. Yeah. And I think that's what he's going to do. So I think that's, you know, the driving force behind this, this rally. Now, when we do that, though, you're going to see a lot of other nations bash it or whatever it be, because nation's currency is its power. Right. So if we lead the way in this, you're going to see a lot of probably negative news in a lot of ways in other areas because it takes power away from everyone else, too. If we get involved. For example, like, Russia, I know, was transacting crypto during the Ukraine war because they knew they would get, like, all their regulations against, you know, using Russian products and stuff like that. They basically packaged a lot of money in crypto to hedge against that whole thing happening. So crypto is already kind of getting traction when it comes to government control. But again, I think you can play this. It's pretty. The thing about bitcoin and crypto in general, it's all supply and demand. It has no earnings, it has no risk factor for a company missing its profits for one year. Like, it's all supply and demand. The fact is there's only a limited amount of them. And if people out there think it's going a couple million dollars, they will never sell it. So the volume of being what's being transacted gets smaller and smaller and smaller throughout time. So it can really move it very quickly. Right. So it can go up and down very quickly, is what I'm saying. Yeah. I don't know. It's just that black box. How do you use it in today's society? You know that that's a question for bitcoin. And then there's an infinite, you know, there's a finite amount of them. How much? 21 mil. 18. 3 million is lost. So 18 million. There's 18 million coins. Yes. Well, and right now price 16, because. You know, I think 18 out of the 21, I think they'll all be mined by 2100 or something like that. We have another 100 years before they're all mined. But, yeah, 3 million is lost because people put them. Like my cousin, for example, had 10,000 bitcoin back in 2011 when it was 50 cents a coin. He had, like, in a hard drive, because it was. No one knew what it was. He sold it, sadly for $2. He, like, made 4X's money. He, like, made 80 grand on it, but he would be worth $500 million. But people like him that had it in hard drives from 2011, that just when it was worth nothing, almost lost the hard drives. And yeah, now they're in a field right now. Junkyard, junkyard, digging. Digging through garbage, literally looking for a hard drive. All right, fun fact of the day. There's reports that, you know, the. That Trump spent about 500, 500 million or raised 500 million on his. For his campaign and spent 10 million on staff, and he underspent by almost 10%. There are also reports simultaneously with that that Harris had a billion dollars of campaign money and she spent over half of that on the staff. I mean, man, I'd love to run around, run around with an iPad, signing people up. I could have made like 100 grand or something. Who knows? And there's talks that she's over budget by, you know, there's numbers of 20, 20 million or 300 million. And I don't know, you know, like, I'm curious to see, because I know that she spent at least $20 million on Beyonce and some other rappers and stuff that are events. Is that confirmed? Like, did Beyonce really get $10 million? I mean, for that endorsement floating around on the Twitter sphere? And, like, no one needs to disclose that. Like, that's what we're doing here. I guess we'll see on her tax return next year. That's wild. But, yeah, she didn't sing. Yeah, she didn't do anything. She just walked out on stage. That makes me kind of, like, question that a little bit. But they're. They're saying, oprah, Oprah, they got a million dollars to do that. That thing with the teleprompter. Ridiculous. It's wild. We need become Beyonce so we can make $10 million. So I, I'm curious if this will ever come to, you know, the surface of what was really spent and stuff. Or no one cares, or it's just the left doesn't care. Democrats don't care. Yeah, let's put it that way. That's the easiest. Well, they don't care because they just. They don't want to spend it all anyway. All right, and one more thing. So we got a big sporting event this weekend, and I think it's on Friday. It's Mike Tyson versus Jake Paul. Know who Jake Paul is, but hometown hero. He is a Westlake, Ohio guy, right. You know, big brand in that kind of social media frenzy. Last couple of years, he's really taken off, made a lot of money for himself. But you got the goat. Mike Tyson and that dude. Who do you got? Like, they're. They're boxing this weekend. Well, it's funny, I think they were at the same, like, event. I think it was a basketball game or football game, like, a few weeks back. And Jake's up there, like, in the cam that they put him on, and he's like punching his fist, like, basically like, I'm in beat. Mike Tyson. Mike Tyson just sitting there, like. And they both show each other, like, both of them. He's like, I don't care what Jake's doing. Like, Mike's not concerned. Mike's not scared. I think Jake's hyper. He's a marketer and he's in his prime. Jake's, I think, a little older than me. I think he's one year older than me. Maybe he's like 28. Mike's what, 60 years old. And my favorite thing in the interview with Mike a few weeks back was they asked him, like, what would you do if you were fighting like yourself, essentially, when you were in Your prime at 28 years old? He's like, well, I wouldn't be fighting a 60 year old. I love that. But like, that being said, I think. I think Jake's gonna win. But Mike in his prime would. Oh, well, demolished. But I mean, he's a. He's the best boxer ever, essentially. Like heavyweight boxer in his prime. Jake would stand no chance on his prime. But I mean, how Jake's going to win? It might, dude. One punch, dude. From either. From either one of them, though. Like, one punch from either one of those or the other guys going down. Yeah. So is it just. Is it just luck at this point? Because I don't know how much skill Paul has, to be honest. I just. He's. He's training. He's. He's. He's looking good. I've seen him wrestle the fake wrestling. And brother. What's his brother, that's not his. Okay, well, Jake has done other MMA stuff, right? Yep. So he wins. But I don't usually believe it because he's again, going against former goats and Stars and stuff, right? Yep. Any. Any take, guys. And you. What do you think? I said I'm taking Jake. Really? Okay. Yeah. I'm literally gonna be in my rehearsal dinner at my wedding, and we're watching it afterwards, so I'm gonna bet on Jake. What's the. What's the odds? Yeah, I was trying to find it. It's something Paul's, like, around minus 500 or so. Really? That much? Wow. Okay. Rehearsal dinner this weekend? Yeah. Getting married on Saturday. Really? Well, good luck out there. Thank you. No turning back now. No, no, not. Not really. Unless you wanna. Unless you want to piss off a bunch of. Lucky guy. Luckiest guy in the world. Yeah. There you go, man. Good luck out there, and we wish you the best. Thank you. And we'll see you on the other side. Yeah. Let you know how it goes. Hopefully no family drama. Yeah. All right, man. Take us home, D. All right, well. Thanks for listening this week. If you guys have any questions, comments, show ideas, hit us up@infowpconnect.com and we'll talk to you next week. The opinions expressed in the podcast are for general informational purposes only and are not intended to provide specific advice or recommendations for any investment, legal, financial, or tax strategy. It is only intended to provide education about the financial industry. Please consult a qualified professional about your individual needs.