Bitcoin is digital gold: Mark Yusko

NATIONALIST AND POPULIST

MOVEMENTS.

IT'S EVERYWHERE.

MARIA: HERE WE ARE WITH ALL THE

METRICS YOU'RE BRINGING UP, THEY

DO NOT SUPPORT A FEDERAL RESERVE

THAT'S GOING TO RAISE INTEREST

RATES 4 TIMES THIS YEAR AND

THAT'S WHY THE PRESIDENT HAS

BEEN SO UPSET ABOUT THIS, JANET

YELLEN FORMER CHAIRMAN OF THE

FED IS SPEAKING OUT AGAINST THE

PRESIDENT'S COMMENTS ABOUT

CENTRAL BANK, THEY ARE

COUNTERPRODUCTIVE, DON'T CALL

THE FED CRAZY AND LOCO, IT'S

COUNTERPRODUCTIVE AND YET YOU

ARE SAYING THEY ARE CRAZY?

I DON'T THINK THEY ARE CRAZY.

I THINK THE FED HAS BEEN BEHIND

THE CURVE FOR A LONG TIME, I

SAID A COUPLE OF YEARS AGO THAT

THEY WERE FAR BEHIND -- 13 WHEN

THE ECONOMY STARTED TO RECOVER

THEY SHOULD HAVE RAISED RATES 3

TO 4% RANGE.

SHORT-TERM INTEREST RATES FOR

100 YEARS HAVE BEEN EQUAL TO

NOMINAL GDP.

NOMINAL GDP TODAY IS SOMEWHERE 4

OR 5%.

SHORT-TERM RATE SHOULD BE THERE.

WHAT'S GOING TO TILT INTO

RECESSION, I THINK IT'S INVERTED

YIELD CURVE, SHORT-TERM RATES

SHOULD KEEP COMING UP.

HAVE NICE CLEANSING RECESSION,

THERE'S A LOT OF ZOMBIE

COMPANIES, 14% OF COMPANIES IN

THE S&P COULDN'T PAY THEIR DEBT

SERVICE WITH THEIR NEXT 3 YEARS,

THOSE COMPANIES NEED TO GO AWAY

AND THE STRONG COMPANY NEEDS TO

SURVIVE.

DAGEN: SO FAR IF PEOPLE ARE

SELLING LONG-TERM TREASURIES

THAT'S A SIGN THAT THE ECONOMY

LOOKS OKAY DOES IT NOT?

WE HAVE SEEN STABILITY IN THE

YIELD CURVE AND IT'S NOT VERY

FLAT?

IT'S VERY FLAT.

DAGEN: IT'S NOT THE FLATTEST IT

HAS BEEN IN YEARS, LINDSEY?

YEAH, IT IS.

IT CAME OFF A COUPLE BASIS

POINTS.

IT'S ALMOST INVERTED.

THE REASON 30-YEAR IS NOT RISING

AS MUCH AS SHORT-TERM IS PEOPLE

BELIEVE THAT THE FED IS MAKING

POLICY ERROR, THAT'S WHAT THE

MARKET IS TELLING THE FED.

IF IT DOES INVERT THAT WOULD BE

THE MARKET SAYING WE DON'T

BELIEVE THE GROWTH IS THERE.

JON: KEEP RAISING WHEN INFLATION

AT 2% --

MARIA: I THINK WE ALL AGREE THE

FED SHOULDN'T KEEP RAISING.

I LOOK AT IT, I DON'T THINK

THAT CPI IS GOOD MEASURE OF

INFLATION.

THERE'S A LOT OF COST THAT WE

SPEND MONEY ON THAT'S

SIGNIFICANTLY HIGHER THAN THAT.

I THINK THAT NOMINAL INTEREST

RATES ARE A LITTLE BIT TOO LOW.

I DON'T THINK THEY SHOULD BE 5

OR 6%, THEY COULD BE HIGHER.

THE OTHER ISSUE IS WHEN YOU'RE

LATE IN THE CYCLE YOU NEED TO

HAVE HIGHER RATE SO WHEN THE

CYCLE TURNS AND THINGS TARGET TO

GET NEGATIVE THE FED CAN CUT

AGAIN.

THEY REALLY ARE OUT OF TOOLS IF

WE DO GO INTO A RECESSION.

JON: YOU DON'T WANT TO RAISE

RATES SO MUCH THAT YOU CAUSE

RECESSION THAT YOU HAVE THE

ABILITY TO FIGHT BECAUSE YOU'VE

RAISED RATES SO MUCH?

I MEAN A BIG BELIEVER THAT

RECESSION ARE PART OF CYCLE, WE

SHOULDN'T ATTEMPT TO ABOLISH

THEM IN THE FIRST PLACE.

I WOULD HAVE THOUGHT THAT THE

LOCO PART OF THE FED WAS KEEPING

ZERO INTEREST RATES.

MARIA: THAT WAS UP THERE WITH

LOCO, CRYPTO CURRENCY?

WE THINK EQUITY MARKETS ARE

THE BEGINNINGS OF BEAR MARKET,

CRYPTO MARKETS, BEGINNING OF

BULL MARKET.

I'M A BIG BELIEVER THAT SOUND

MONEY, RIGHT, WHAT NONFIAT

CURRENCY, CURRENCY ALL AROUND

THE WORLD HAVE STARTED TO

EXPLODE.

LOOK WHAT HAPPENED AT IN

ZIMBABWE AND VENEZUELA.

WHEN THERE'S SO MUCH DEBT THEY

CAN'T SUPPORT DEBT.

HUGE, DAGEN, THAT'S A HUGE

DEVELOPMENT AND WHAT IT SAYS THE

GREAT WALL OF MONEY, INVESTORS

ARE COMING FOR THIS ASSET AND IT

IS THE FIRST ALTERNATIVE ASSET

REALLY IN MY CAREER THAT

DELIVERS ON THE PROMISE.

BETTER RETURNS.

LOVE BITCOIN.

WE THINK THAT'S DIGITAL GOLD

ULTIMATELY BE RESERVE CURRENCY,

A, NOT B.

LIKE THE WWW DOT OF INTERNET OF

VALUE OR TRUST NET.

INTERNET TO MOBILE NET AND NOW

THE TRUST NET.