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Back to episode — Episode 2902 CWSA 07/19/25

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sociated with the country? Now, it's not a big deal, but the way it feels is bigger than how big a deal it is. And that's what Trump gets right every time. He will make you feel that things are moving in the right direction. And what have I taught you about economics? The most important thing you need to know about economics, aside from the fact that economists are only guessing, that maybe that's…

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e your LDL because that was bad stuff. So I was looking back on my history of diet and science, and correct me if I'm wrong, but over my lifetime, science has been wrong about everything about diet fairly consistently. And I think almost everything except maybe soda. Soda's always been considered not the best thing for you, but almost everything else went through a phase where somebody said it was bad for you only to be redeemed later by science. In both cases, science was driving it. And it just feels like guessing. I mean, almost everything in the diet category just feels like guessing. It's so damn weird. So you can have your eggs.

All right. These next few stories have something in common, which is I don't understand them at all. And I'm in good company because you won't understand them either, but they're big headline stories. So I spent most of this morning looking at the headlines and then going to Grok and saying, "Can you explain to me what this story is really about? Can you tell me the context or why would I care about this or why is there even a story?" Right? Let's see how close you can get to understanding this.

So Trump signed what's called the GENIUS Act into law and it's legislation that will pave the way for the US to lead the global digital currency revolution. So everybody understands that? Do you understand cryptocurrency and do you understand why the GENIUS Act is going to be good for the US in terms of cryptocurrency? No. Of course you don't. The news has just become so complicated and so technical. I have no idea what this means. No idea. Was there some problem I didn't know about?

Well, so I went to Grok and I said, "Why do we need the GENIUS Act?" And Grok told me it establishes a comprehensive regulatory framework for stable coins in the US. Do you know what the next thing I had to ask it was? Why do we care about stable coins? And what the hell is a stable coin? Have I lost you all yet? Are you all in the same place I am, which is I have no idea what's going on. No idea.

But a stable coin is a cryptocurrency that would in this particular example of the GENIUS Act would be issued usually by a bank or some credible institution. But what makes it a stable coin is that the crypto would only move with the dollar. So if the dollar was worth a little more, so would the crypto, but it would always be tied to the value of the dollar. Now you might say why do we need to have comprehensive regulatory framework? Well, now you're well beyond my ability to explain what's going on. There must be some ways that this can go wrong and having a good framework for this and allowing stable coins. I think the big change is that it allows the stable coins to thrive because people will feel safer about that. And I know that there's a benefit if you're making payments overseas. Have you ever tried to pay somebody a lot of money and you had to use a bank and then you say, "I'd like to send a wire." and it's this gigantic pain in the ass and they take a big fee and you wonder why does it take overnight to send a wire? Well, if you add these stable coins, apparently you would just say to your trading partner in another country, all right, what's your account number? I'm sending you some crypto and there wouldn't be any charge. So there would be no middleman to take a piece of it. So some of it probably has to do with privacy and some of it has to do with regulatory fiduciary responsibility, but we don't really understand it.

Well, what else is in the news? Oh, President Trump vowed to never allow the creation of a central bank digital currency, which would be a crypto that would be sort of a direct replacement for the dollar. So he says that's not going to happen. Why? Well, there would be problems with privacy and it would give the government too much control because they could watch what you're doing and they could turn off your ability to do it. To which I say, how is that really different than the regular dollar? You know that if the government wants to look at your transactions, they're going to need a reason, but it doesn't take much of a reason and they can get some kind of approva

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l to totally look at what you're doing with your regular dollars. So do you really have privacy when it comes to larger transactions? No, you don't. You don't have any privacy when it comes to large transactions. If your government is interested, if they want to look at what you're doing, they're going to be able to look at it. They always have been able to. So do I think that a central bank digit…

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