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Donald Trump is lashing out against California thanks to the California wildfires we have a lot to talk about regarding the California wildfires but first we're going to talk about how the Chinese macroeconomy could end up affecting the United States via a deflationary spiral talk briefly about a bubble warning but also some bullish talk to offset this we'll talk about the Federal Reserve minutes as well as Quantum computing's crash today we'll talk about battle going on between Jensen and d-wave will go deep into why Donald Trump thinks we should take over Greenland which yesterday came with confusion but today comes with a lot of clarity we'll also talk crypto well let's get started first on macro there is talk bullish talk that by TS Lombard that we don't need rate Cuts in 2025 because quite frankly everything is going to Boom in fact China is going to return demand to the United States that we're already seeing bullish ordering from Chinese firms and sales by Chinese firms to foreign countries and that's going to end up resulting in even more of a boom in the United States for 2025 now sure under Trump you should expect higher volatility but strong corporate fundamentals will be supported by potential cuts to the corporate tax rate and we're going to be sticking with higher for longer which could cause the nation's home builders to underperform this is a thesis put out just today by an analytical company called TS Lombard now this is offset by at the same time Bloomberg citing that China's economy is so pessimistic that the bond market is essentially assuming that China's economy is going to a deflationary 1990s stop recession depression or deflationary spiral one of the ways that you could look at this bond market in real time is simply Google the Chinese 10year government bond yield and if you go out to the little fiveyear chart you could see this collapse in the five in in the 10-year Government Bond No matter how much you zoom out we've never actually seen Chinese debt this low yielding this is a potential sign that investors in China are fleeing out of risk assets and real estate and factories and consumption assuming that we're going to have deflation and they're trying to get any yield they can get their hands on so that way their money grows see the downside of deflation is usually when you have deflation everybody hoardes the money they have you end up creating a depression because why would you buy that iPhone today if you could just wait a year and it's 20% cheaper iPhone might not be the best example because they come out with a new one every single year anyway but the thesis applies to Machinery cars corporate expenses why buy today if it's going to be cheaper tomorrow that would lead Chinese GDP to rapidly UND shoot expectations that they can get 5% growth and people believe that a deflationary spiral in China is a caused by Massive overbuilding of Manufacturers that there's just way too much excess Supply now remember in Co we had too little Supply now they're like too too much Supply uh but some people say while it's good that it could export deflation to us it's bad because if China contributes to the global economy less then you could see European markets and other countries slow down China also buys stuff from our companies we're going to think for example uh Quantum uh or sorry not we're going to talk quantum computers in just a moment think qual somewhere around 45 to 65% of their revenues go to China around 20% of Tesla revenues come from China uh Apple about 18 to 20% of their revenues from China so if China slows down there's a fear that a lot of large corporations including our mag sevs could get hit with limited sales because people are spending less money in China but as you can see there's a lot of this sort of Wait and See For What what's going to happen with China and Trump tariffs look for example at this in December China's growth has likely continued stabilizing with some marginal data Improvement in select areas thanks to a new round of policy easing since September this has supported a rebound of GDP growth in Q4 however markets remain cautious on China's economic fundamentals waiting for more updates on China's easing measures as well as Trump tariffs in December major activity growth data has likely improved however deflationary pressures could linger with a decline in CPI inflation and deep PPI producer think manufacturing deflation remember deflation again generally is associated with a slowing economy this is why you try to calibrate inflation around two percentage points and again people buy bonds so that way they can at least capture some yield especially since the Chinese stock market so far this year isn't off to the best start it's basically been read every single day you can also see that even China's 30-year bonds have fallen and tumbled now with a lower yield than what Japan offers you could hear see it's a downward spiral that will keep getting worse if it's not corrected there's a psychological element to Japan's lessons where the longer this persists the weaker business and consumer confidence gets in other words the longer China waits to actually properly prop up the Chinese economy with the appropriate amount of stimulus the worse it gets the more businesses are damaged and the more businesses just say I've had enough I'm going to wait to spend money and we're going to save that saving mentality is quite the opposite of what you see in the United States where our economy is still in spend spend spend mode which is great but may not last and that's where you have some folks who say we're actually in a bubble environment now this isn't everyone but there was a bearish institutional letter out today uh by this uh author called Owen nomic I never actually heard of this person before this letter uh and like I said TS Lombard was really bullish on China you also had worth noting credit agricol agrial pretty bullish they uh don't expect a Federal Reserve cut in January they think that uh jobs data absent a big surprise to the downside will just end up confirming the Federal Reserve is not going to cut they're forecasting 145,000 jobs for this Friday jobs report at credit agricult which is slightly less than what Market participants are forecasting closer to 160k but still a lot better than something sub 100 that would be more recession fear inducing ultimately credit agrial says this indicates a labor market that is clearly cooled but is not fallen off a cliff now we've talked about this in Prior videos that you're really not going to see the labor market roll over until you have layoffs and as long as corporate profits keep going like TS Lombard says they might yeah we could potentially keep seeing higher yields and hopefully highering rebounds because frankly nobody wants to go through a recession anyway onomics writes that we are in the middle of a quote raging Bitcoin bubble the stock market or quote at least The Lunatic Fringe of meme stocks and crypto related firms is not far behind the individual provides Seven Pillars of uh identifying when you're in a bubble one of them is that bubbles involve irrational optimists basically in his words idiots who create market-wide bubbles or mispricings that could actually potentially last four years he then says that this there's this utopian idea that everybody should be able to get rich and that also happened in 1929 when everybody wanted exposure to stocks and then guess what everybody got poor over the next years as the Great Depression took hold he says that nobody knows with certainty if Bitcoin is going to keep going up and anybody saying otherwise is just part of the lunatic F frenzy a fanatic won't change his mind either he's sort of really anti Bitcoin Maxi this person really seems like like they're bears and then they are just people that just show up like once in a while and they're just mega mega bears but I guess we don't have to be mean to him we just quickly get through what he's saying here uh he argues that bitcoiners who are really Pro Bitcoin just work to confuse people and then claim you don't understand Bitcoin and the more they can confuse you the better Bitcoin is and after all this time is different and the numbers keep going up okay so obviously a bakeley bear there uh so you can see there are a lot of mixed opinions on what's going on in the market obviously this job sta is going to be very important on Friday it's also worth noting that the stock market is going to be closed tomorrow which I did discuss this morning in my course member live stream as we're reviewing some of the initial data that was coming out this morning uh doing our fundamental analysis as we usually do and uh I mentioned this in the alpha report as well this morning the stock market is going to be closed uh and so really any of the trading that happened today which I thought the market might end up being somewhat flat in anticipation of this is based on what people think the jobs Market is going to deliver to us on Friday and so far people are actually kind of bullish I mean yeah last month we got 227,000 that might get revised down this month we're expecting exactly 165,000 a 4.2 unemployment rate average hourly earnings at.
3% slightly down from the 04 last month and we expect average weekly hours by all employees to be at 34.3 same as before with a stable labor force participation rate we'll see see what ends up happening Friday but again we won't get to trade on it on Thursday we'll still provide a meet Kevin report though as there is more news that happens than just market news but first before we get to the non-market news we really got to get into talking about quantum computers because Quantum Computing stocks absolutely got destroyed today look at this uh d-wave Computing down 36% today Quantum Computing down 43% another one that I mentioned in another meet Kevin report was RR uh Rin Tech robotics they got wrecked today down 18% and I was bearish on them as well but anyway why is this company down 36% for example I mean look at this this stock went from under a dollar to a peak of $11 what was the Catalyst the catalyst was Google's announcement of a Quantum Computing chip and so this led to this surge that everybody wanted to get into Quantum Computing because Google said the path has been paved for the useful usage of large scale quantum computers okay so that led to a ridiculous rally in Quantum Computing companies which have mostly very terrible fundamentals which we'll talk about in just a moment but what led to the selloff the market all of a sudden recognizing fundamentals No in fact if the market understood fundamentals they probably wouldn't be investing in d-wave anyway because it's a different kind of quantum Computing technology than what Google creates we'll talk about the difference in just a moment I'll explain it to you so it's kind of funny actually that on a totally different type of quantum technology an unrelated company would rally but it's because it has Quantum in the name and frankly that's good enough for most people's due diligence when it comes to momentum but that's why we do a meet Kevin report to try to provide you the intelligence to separate these things anyway the reason these stocks started falling is because yesterday Jensen mentioned it could take potentially as long as 15 years at the earliest or on the early side for very useful quantum computers and potentially as long as 30 years though that would be more on the late side now the CEO of d-wave went on CNBC today to complain basically said look we've already got customers like MasterCard and and we're doing a great job with our quantum computers already in production today uh and ultim Ely he talked about the difference very briefly between gate based Quantum Computing and analed Quantum Computing now while he tried brushing off that the quantum Computing they use is just for optimization purposes that's basically what it is let me give you a quick understanding and a quick primer on the two different types of quantum Computing because I think it's going to help you really understand what to expect in the long-term future what to pay attention to and okay that's weird breaking person arrested after attempting to enter US capital Visitor Center with machete knives in bag uh 2025 is something else anyway all right so there are two types of quantum Computing there's something known as a gate-based quantum computer a gate based quantum computer is kind of like your classic computer except really really fast and it's really good at puzzles with very very low error rates puzzles would be kind of like like what you need to solve using what we like to call the Shores algorithm kind of like a Quantum algorithm uh to break into cryptography like 256 or some of the uh cryptography we use for various different uh security system cyber security um uh Bitcoin cryptography you name it these algorithms can be broken potentially by the these quantum-based computers using gate-based puzzle-based approaches so when you think gate based just think puzzle they're trying to with a very very low error rate puzzle together a mathematical solution in a much faster way than traditional computers can do today today for a computer to break like an sha uh you know 256 encryption it could take hundreds of years maybe even thousands of years to actually break these encryptions this is why there's so secure this is what cryptography is and that's actually what crypto basically was based on was the idea of encryption right anyway so breaking this would take a very long time but the thesis is that a quantum computer could build the puzzle out of breaking these security algorithms rapidly potentially as quickly as 20 seconds but I want you to understand the difference between the chip that Google came out with and the the chip that would be required to operate for 20 seconds to actually be able to break let's say bitcoin's algorithm all right the chip that Google came out with the willow chip has about 105 cubits these are physical cubits not logical cubits that's that's another thing you need a certain amount amount of actual physical cubits to reduce the errors and increase the stability of the puzzle formation of quantum Computing to actually have a functional Quantum Computing machine it doesn't have to work that long and so the willow chip operated for about 100 micro seconds with 105 different well 105 cubics cubits there we go that's 100 in case you haven't heard of the phrase before microsc that's .1 millisecond okay well if you need 20 seconds you would need somewhere around 400 of these chips to actually be functional quick math 20 seconds divided by .1 millisecond is 200,000 so you need 200,000 times the compute efficiency of the willow chip to break crypto or cryptography if you could even pull it off in 20 seconds in the future this is why Jensen says we're 15 to 30 years away now on a more practical basis people think we need about 400 times the cubits that Google put together in the willow chip to even get close to having a hope of breaking these sort of cryptography so Willow's Quantum chip is really just a research step in the right direction that they had a stable quantum computer for 0.1 milliseconds is that actually functional no but from a research point of view it is fantastic Okay cool so all of that is gate based Quantum Computing so what are existing Quantum Computing companies using like d-wave d-wave uses a Quantum Computing process known as annealing the easiest way to think about this is rather than starting with a messy puzzle and trying to put it together imagine just sort of like pouring water down a mountain and then whichever path the water goes the fastest is the way the energy goes for the quantum computer and I'm way oversimplifying this okay and that's your optimized path so what is that useful for well it's really useful for really specific purposes like planning delivery routes at UPS scheduling workers and protein folding maybe even some Finance these are not general purpose quantum computers they're very very specific purpose computers they're not a threat to cryptography they're like the opposite of gate based right analing is is a totally different technology so notice how Quantum Computing via the willow chip got you something that was you know 12 200,000th as good as what you really need to do what the magic of quantum computers can do and it was a research milestone in Gate based computing and the actual stocks that were just going up are a ne-based Quantum Computing optimization companies this is why Nvidia says we're 15 to 30 years away fun note though Nvidia is hiring Quantum Engineers I did also though take a very brief peek at the d-wave fundamentals I don't want to say this is a deep dive at all because it's not this is just super surface level uh but yes the stock did run up a lot after the willow chip uh numbers but take a look at uh some of or the willow chip announcement I should say some of their financials they lost $ 44.6 million in free cash flow in 24 $46 million in 2023 their revenue in the 3 months ending in uh September so Q3 was down 27% from last year in fairness their revenue year-over-year was up slightly from last year uh if you look at the 9 month month portion they're up about 11% over here though I do think it's interesting that year-over-year their sales and marketing expenses exploded their sales and marketing expenses are up 51% and their R&D expenses in that quarter are and on the year-over-year basis are actually down so they're spending a lot more money marketing their product and less money researching their product and more money on GNA and so that's why they're lost actually ended up growing when you compare year toe further loss on operations if you look at their balance sheet to me it seems like they've got less than a year of actual cash flow left and if you just look at their payables they've got just enough money to really cover a year and a few months but they're going to have to raise some money it would be a perfect time to raise some money now given that their stock has MD up so we'll see what happens anyway look I'm not the best at giving you the greatest Deep dive in Quantum Computing so if somebody can give a refined explanation on this in the comments I'm happy to hard it or pin it or whatever but I wanted to give that as a breakdown because I think it's really important to know when you hear Quantum Computing this is going to give you a lot more perspective ah okay different types of quantum Computing research milestones in one don't equal all of a sudden d-wave is going to the Moon it could for momentum purposes because these stocks trade so so minorly they have such little float but that's also why they can have have in one day because all of a sudden the buy order book freezes up nobody wants to buy anymore and people want out and then it rapidly disassembles right all right enough about Quantum let's now talk about the Federal Reserve so the minutes came out today in my opinion these were mostly a nothing Burger uh there were few signs here of concern about persistent inflationary pressures in the market worth noting I did read all of it so I want you to know I actually went I went through the Fed minut they said that Equity Prices rose in anticipation of trump and after liquidity and treasuries deteriorated somewhat markets anticipate rate cuts to slow considerably in 2025 and fed Communications helped the perception of these slower Cuts GDP growth is expected to be slightly slower with 2% inflation in 2017 downside risks to labor market have uh to the labor market have eased in recent months and all of them judge the risks to inflation had increased this is probably the most important part and if you look at page n they basically say the following likely effects of political changes in trade and immigration policy that's a quote would lead to the upside in inflation risk so this all started on December 18th when the FED all of a sudden decided rather than reacting to inflationary impetuses like tariff policies they're going to start trying to front run inflation policies this is why a lot of people are comparing the market right now to December of 2021 where where they're like um in December of 2021 the FED went harsh and told us they were going to raise rates that was a disaster this December 18th meeting might somewhat be similar where they're kind of like yeah we're going to front run Trump which is also kind of interesting because they didn't front run stimulus inflation they're like ah it'll be transitory it won't matter and then they were way behind the curve now people think they are way too aggressively ahead of the curve that they're crushing the labor market and they're pre crushing the market for Trump in anticipation of tariff which may never come because my thesis of course this I want to just always clarify where my opinion is my opinion is that with rates this high it's just a matter of time before the economy stalls out and when it does the market crashes Donald Trump's not going unless we get really good jobs data right if we get really good jobs data will be fine like if we get three months in a row here of great jobs data hey fine great soft Landing achieved right excellent but Donald Trump's not going to Institute his tariffs if the Market's crashing and so then the FED is tightening for nothing and causing a potential crash for nothing freaking idiots like you should know Trump's just negotiating which we're going to talk about Greenland in just a moment which will be really fun but we got to get through the fires first so do a lot of people that was are freaking terrible but anyway uh as far as the fed and Nick Tios over at the Wall Street Journal Nick T wrote an article basically saying the FED is expected to keep rates steady for January so don't anticipate a Federal Reserve cut uh in January I can give you the Market implied probabilities as well really quickly the okay um those shifted a bit today uh the uh uh the the market implied chance of a cut right now in January uh is uh is is basically negative 4.8% so like the markets think there's like no chance that we're going to get a cut in January uh and uh and and that rises a little bit but not much to like a third when we get to March all right so today uh we did also have Waller talk from the Federal Reserve he says that he thinks inflation is going to keep making further progress because 12month measures of inflation could drop meaningfully in the next few months because of the q1 pickup last year all right this is a lapping argument it basically says that because inflation in q1 last year was elevated when we compare this year's inflation to last year we should have lower numbers this year because you know like if your last year number is 305 and it was really high and these aren't exact numbers I'm just saying it and this year's number has to beat that higher number if it comes in even just slightly higher it's almost going to look flat or maybe even negative compared to last year not exact numbers I'm just making stuff up to try to help understand comparing to last year but anyway that was Waller today so with all that out of the way and macro out of the way let's now talk uh fire politics and then we got to talk Greenland and crypto a little bit all right ready for this m m in case you haven't already heard I'm sure you have California's on fire once again Donald Trump posted no water and fire hydrants no money and FEMA this is what Joe Biden is leaving me thanks Joe this is true especially regarding the fire hydrants we need to talk about that so far we are experiencing the worst fire in Los Angeles history with more than 1,000 structures hit in the Pacific Palisades over 11,000 Acres we've had multiple different fires fires in santaa fires in uh the Olivas fire in the Ventura County area were good here just wanted to shout that out there are a lot of people who are suffering though and my heart goes out to them and their families and their pets and their homes and their businesses the Hearst fire the Woodly fire the eaten fire which is like over 10,600 Acres we're at 0% containment which isn't unusual while the winds are still blowing usually once the wind sto blowing you could actually contain these fires a lot of people misunderstand California fires because they assume that California fires are really just like any other fire uh and this this really isn't true now yes there's more California can do and we're going to talk about that but something that you really have to know when it comes to California fires is they're just mostly driven by topography and wind and in California we've got a lot of mountains on the coast which create valleys for wind to blow through and these valleys make fir so freaking deadly yesterday we had fires and uh or that that were spreading because of wind gusts between 50 to 100 Mil an hour in some cases up to 200 mph gust which is absolutely insane this is why planes were grounded in many different areas uh but especially firefighting planes uh but take a look at this when you pull up this this is the uh windy app I think it's great for Aviation as well uh you can see Wednesday at 8:00 a.m.
this morning I don't have yesterday's winds anymore but you could see how right here you've got uh mountains and ridges that basically block the winds in this lower sort of area of Los Angeles but where they funnel through is through the Burbank Valley and they come out over here by the Palisades and Malibu and in those areas that's where we've got substantial fires uh and winds specifically what we call the East Winds are famous for causing fires in California now a lot of people are freaking out especially on social media because there's talk about how insurance companies cancelled policies before the Los Angeles wildfires and this is true companies like State Farm and other companies did cancel insurance policies this summer this is actually a very common time and I'm not defending insurance companies at all uh is a very common time for insurance companies to cancel policies because it's before Fire season which is usually associated with those easterly winds in casee you're not in aviation or familiar with how winds work when somebody tells you hey winds are at 90° or easterly winds that's the direction the winds are coming from that took just between us okay that took me a little while to understand uh I was always like oh okay yeah wind's at 90° so so they're blowing that way like that was my stupid ignorant prior self now I know better and so I thought I'd share that with you all right anyway uh so it's very common that the East Winds cause fires and and they're bad they they blow a lot like nobody knows how to blow better uh and and these exacerbate the problems that you have in California now we're going to talk about more of the problems that we have don't worry in 2019 Donald Trump talked about how there are old trees in California sitting and rotting and dying all over the place this argument from Donald Trump in 2009 19 is not actually entirely untrue it's kind of True by some estimates there are potentially as many as 163 million dead trees in California a lot of this is due to the droughts that we face in California as many as onethird of homes in California also lie close to dense V vegetation uh or right up to it so uh if you put it together it's about 33% are within 1 and 1/2 miles and some are just like sitting right on top of really dense vegetation and a lot of this vegetation what happens in droughts is basically the brush dies kind of think like a desert and then you're left with tumble weeds or you're left with mulch basically that just gets baked and dried out in the California dry air this isn't like Florida these aren't like Florida forest fires where which you rarely get it's like swamp fires right cuz everything's wet you really high hum humidity we have really low humidity so when you combine droughts dead ammunition for fires basically easterly winds and low humidity you basically create a Tinder Box in California for fires now Donald Trump says people need to manage the forest nobody is managing the forest and yes this is true even Berkeley which leans left obviously I got into Berkeley but I didn't go to Berkeley I went to UCLA for what it's worth uh they argue that Forest management actually helps and that's a big thing coming from Berkeley in my opinion but they argue that yes we need to conduct controlled Burns we need to burn the mulch that's on the ground in a manner that we can control it when we're not in an emergency situation and yeah we need to manage our Force because controlled Burns and maybe even de brushing actually helps prevent large catastrophic fires this is has been studied many times before when I ran for governor in California I ran on doing more controlled Burns controlled burns are really important because when you have really windy environments what you're actually doing is you're worsening pollution through what's known as black carbon or the spread of black carbon black carbon is basically soot and it's really bad for the environment now it doesn't last that long in the air because it usually you know it happens in concentrated times when there's a lot of wind this is why you do controlled burns when there's not a lot of wind see when you control the burns you can decide when to burn it anyway black suot doesn't last that long in the environment cuz duh the wind dies down but black carbon is considered a 100 times more potent than greenhouse gases to climate change so it's kind of ironic that there's so much of a push for you know climate change but then you're not doing controlled burns when black carbon is so much more damaging to the environment and these uncontrolled burns are so much more damaging okay then people get all prehistoric and they're like yeah well California was on fire all the time in prehistory sure but we also didn't have homes and and and and people living there uh and the destruction to our economy you know sometimes people have this fallacious argument they're like oh if a hurricane comes by and destroys 100 Windows well that's good for the economy because now people have to replace 100 Windows wrong you basically dug a hole to fill it yes you spent the money to replace 100 windows but what did you get out of that you got the same thing you had before you got back to status quo now if you spend that money on let's say say research on quantum computers and maybe you actually spend that money in the same way where it has a multiplier in the economy but you spend that money in a way where you actually creating a potential good for let's say curing cancer well that's so much more beneficial right and obviously I'm being extreme with the example just to show that no disasters are not good for the economy they bring you back to net neutral it's actually bad for the economy because now you have less Capital to deploy on things that actually matter uh for the advancement of society so no it's it's it's really bad and Forest man agement is actually very very important and it's a premise that I ran on when I ran for governor in California in fact here's just a little piece here who is Kevin paffrath Cal matters path's 5-year plan includes eliminating income taxes for households earning less than $250,000 legalizing gambling because we're going to tax the crap out of it reforming the state's water and Wildfire Management systems and creating net negative energy plan communities around the state basically building more homes so you know things would be affordable in California I don't understand Nome said he was going to do better and he didn't I'm really disappointed he said that he was going to do better when he got reelected and he also said he was going to do better when Joe Biden got elected listen to it yourself is we are committed as a team as a partnership with the legislature uh and other state agencies including now the federal government no longer a sparring partner but a working partner federal government where we're not addressing headwinds but Tailwinds in terms of the support a memoranda of understanding doubling our respective commitments to vegetation management and Forest management and prescribed Burns to support the Biden Administration with resources not just rhetoric to help this Collective CA resources not just rhetoric what did we get oopsies I'm sorry okay I I can't hide I ran against the guy for governor okay obviously I lost I'm a loser but I can't stand that guy I'm sorry uh and I'm generally like you know me I'm generally extremely neutral on this channel uh at least the best you can be but that that one just pisses me off uh so anyway then we get into this idea that Trump says that California chooses to dump extra water into the ocean all right so let's pull up the map uh yes uh a lot of water does flow from California Rivers into the ocean this is not untrue okay yes yes water flows into the ocean uh one of the ways we look at that is you look at the uh sanen and Sacramento Delta and when you look at that you'll actually be close to uh where house hack has been a bunch uh but look at this this right here is the Delta okay I've flown over this area many many a time and basically you get the sanen river and the Sacramento River they just naturally dump into this Delta so this is a natural flow of water the water comes off mountains that you have over here it fills up Rivers hopefully enough as the snow melts and then it slowly just dumps out into the ocean yes it is true water dumps into the ocean that naturally happens now Donald Trump says California is doing that on purpose no California is not purposefully dumping the water into the ocean but the reverse is true California is purposefully trying to not not dump the water in the ocean okay let me phrase that a little differently California could be damning some of this water diverting the water to actually help fill up more of our reservoirs in California to minimize the drought that we have or droughts that we tend to have or the water problems that we tend to have remember I ran on water management for governor as well okay but Gavin Nome actually promotes damn removal here he is cheering the largest dam removal project in history listen to this largest dam removal project in US history and one of the most significant if not the most significant water restoration project bringing back salmon and steel head into this Basin this project could not have happened with okay basically hey we want to protect the fish and we want salmon or smelt or whatever and we're worried about the species so we're not going to Dam water and we're not going to build up or pump up reservoirs or the Colorado River with more water because we want to protect the environment but by protecting the environment you're actually enabling these crazy catastrophic fires which are even worse for the freaking environment see Berkeley has found that they could just release new fish in the areas where the fish are dying if you divert water they're like instead of have you heard of the phrase Catch and Release okay that that has to do with immigration or fishing depending on what you're talking about there's also something called hatch and release yes hatch so you grow eggs well like you take other fish and you you know you make them have babies basically and then you take the eggs you grow them in tanks and then you go throw the fish in the water like that is another way to solve fish populations especially smelt so yes you can solve the Delta smelt endangered population by just throwing more of them into the freaking water in other words yes you can divert water and damn water and fill freaking things up look when I ran for governor I talked about doubling the flow of the water uh flow of water to California's call colado River so we could actually distribute it to our Farms throughout the entire State specifically the Bread Basket of California uh which which we need we create a you know we grow a lot of food you've got dry Farms it's crazy but what you also have is fire hydrants Running Out of Water okay so why do fire hydrants run out of water is this malicious is this intentional well it depends how far down the rabbit hole you want to go and I had a conversation with somebody about this on X you could follow me there at real me Kevin how do you not have water for fire hydrants that's not ignorant that's malicious I wrote there are reasons for this if the power goes out the pumps fail okay this is important to know power went out for like 400,000 people yesterday in Los Angeles we had power surges up here in Ventura uh if the tanks run dry uh because certain areas like the Pacific Palisades are uh like the water reservoirs they have they're tanks and if they run out because everybody's turning on their water and trying to hose down their property or house burns down and the water line is just leaking and spewing everywhere and guess what hydrants have no water the same thing happened in the Thomas fire in 2017 in Ventura County so we could have seen this crap coming we could have seen it coming from how many years ago is that seven eight years ago come on seven and a half years ago we could have seen this coming that yes fire hydrants can stop freaking working especially in hilly areas cuz you need pumps to pump the water up the hill and what happens when the fire hydrants don't work you could have firefighters but they can't can't do jack anything so yes there are explanations for this but that doesn't give you a good reason because like Patrick says hey I'm a I'm a Floridian who sells industrial pumps for a living like come on we can solve this with generators and he's right and so this I say I 100% agree in my opinion bad politics and bad budgeting no excuse I suppose we could say political corruption is the direct malicious cause look I had a whole plan for solving homelessness in California of course gav new some won because he said his plan is better homelessness is worse than ever before in California and some people actually say homeless people and their videos of this just start fires for fun uh because what else are they doing and in windy times what do you get massive catastrophic fires so like see how all these problems really start relating it's kind of bad but anyway Newsome bragged about damn removal in the past we talked about that uh but another thing that's creating a lot of oh yeah so regarding the fire hydrants yes this is a big problem and it should be fixed it's like insane that a state with up to 13% income taxes doesn't have water for its fire hydrance that's insane I'm going to say the word I'm sorry I I'm not meaning to offend anybody it is full-on that we don't have water in our damn fire hydrants because of politics that's corrupt no wonder insurance companies are fleeing the state because they can't trust the government to actually do anything mind you the government did nothing still does nothing when illegal marijuana Farms hook up to fire hydrants and steal the water straight from the fire hydrants depleting the very reserves we need for these fires what did California do the last time they just removed the fire hydrants yeah when they found out marijuana Farms were stealing water from our fire hydrants rather than actually punishing somebody they just removed the damn fire hydrant you could Google this this is real stuff this is documented and it happens it's insane that's California politics for you today here's some more California politics us Aid helped provide funding for 16 fire brigades to Ukraine that's a 2024 story which means California sent extra fire trucks to Ukraine yeah and not just California but the federal government as well because literally the city of La from a 2022 article here the city of La sent excess supplies that they had including helmets body armor hoses nozzles turnouts blah blah blah to Ukraine so fire trucks and fire defense equipment in storage for emergencies when God forbid you have to call in all off duty fire uh uh fighters to actually come in and help that you actually have material for them to use it was just given away now but that would be amazing right like would California ever actually have to call in all of their off-duty firefighters breaking emergency officials have just announced that all off-duty Los Angeles County firefighters must report immediate oh all right I can understand why people are frustrated stuff like that pisses people off it's one thing if we give away our fire equipment and we can actually handle the fires that we have it's another thing when we're giving away our stuff and then we burn to the freaking ground now of course social media is all up in arms about this why because diversity equity and inclusion yes apparently Dei has been the big priority for the Los Angeles Fire Department uh rather than actually focusing on the best potential firefighting Los Angeles Fire Department has the uh has its first female and first lgbtq fire chief in La history she promised a more inclusive department and supported mayor garcetti's diversity Equity inclusion Bureau Bureau at the LA fire department this Bureau specifically had to do with hiring workplace conduct and promotion which basically means that if you're black or Hispanic uh or a minority or lgbtq or whatever you have a highlighter through your name uh because they have a diversity equity and inclusion Bureau that's going to make sure that you get priority now a lot of people think think that that would never happen that would never actually like affect somebody right there there's no way that they're going to pass up a potentially good and capable firefighter right well listen to this for a minute because it's worth it my white privilege so badly I graduated North Hollywood High with the 1.7 GPA find a job I walked to a fire station in North Hollywood I was 19 I was living in the garage of my family home my mom was on welfare and food stamps and I said can I get a job as a fireman and they said no because you're not black Hispanic or woman uh we'll see in about 7 years and I went to a construction site and dug ditches and picked up garbage for the next seven years I got a letter in the mail sent to my father's house saying your time has come to do the written exam for the LA fire department I took it and I was standing in line and I had a young woman of color standing behind me in line and I said just out of curiosity when did you sign up to become a firan because I did it or person seven years ago and she said Wednesday um that is an example of my white privilege it's oopsies this is bad okay it's bad politics does matter anyway Joe Biden did arrive via Marine 1 I believe to Santa Monica Airport he spoke at the press conference uh on the California fires the press conference was pretty lame it was basically the brass uh showing in a PR move a PowerPoint style presentation to the president in Newsome I don't think Biden was actually really paying attention because he just sort of kept looking down at a note card that he had and after making a few mumbling statements from his note card he started talking about the birth of uh a great grandchild in his family which a lot of people looked at and are like are you kidding me Gavin Newsome was also there uh I think the biggest frustration though that people have is that the mayor Karen bass was not in the state yesterday she's back today that's because she was on a trip to Africa celebrating the inauguration of the president of Ghana yes the president of Ghana was hanging out with our mayor in Los Angeles in Africa when the fires broke out even though we knew the East leer winds were coming Lauren has literally been talking to me for a week she's like Kevin the winds are coming you better not be flying on these days everyone in California knew the winds were coming and we know what happens when the winds are coming and the mayor is like nah man I gotta go hang out with President Ghana Karen bass has also been accused of uh cutting the fire department's budget by $22.9 million uh but if you actually compare that to the actual expenses that the government uh has has has spent or there you know the the fire department has actually spent uh the fire department spent about $93 Million last year and now they're only being all ated $837 million which is a c of about $66 million from what they actually spent last year and given that this is the worst fire in LA's history it's possible we might need a little bit more money for La fire but they just don't have the resources because they're focused on their own political pet projects it's disgusting okay uh wildfires are often caused by power lines homeless accidental cars other purposes but again they could be contained if we actually and properly manage uh our uh Force fire prevention we've already talked about the Berkeley information so we won't go into that uh in heavy detail uh but it's worth looking at a few clips and images of what's going on what the fire looked like in case you haven't seen these yet so I'm just going to go through a few of these uh after this we're going to talk about Greenland and Donald Trump there's a lot to talk about with Greenland and Donald Trump uh so we're going to touch on that this is uh obviously what what a windy fire can look like there were also videos circulating social media of people being in homes while they were catching fire here are just some shots of afterwards in the Palisades I was actually in the Palisades just a few days ago uh on a very important meeting on Sunday and it's interesting because if you follow me on Instagram at meetkevin I actually posted a video about how beautiful I thought the Palisades were and how it was basically like a a town of The Jeffersons now the Palisades Mall supposedly did survive uh so that's good not everything is destroyed but across from the uh Palisades Mall you did see the destruction of the 100-year-old building the Starbucks was in which is also quite devastating I mean you could see how terrible this all looks uh you'll also see the uh here you could briefly see the Palisades library on fire Malibu which remember from The Windy app uh Malibu here you'll see a home collapse that's on fire these are you know 10 to20 million homes that are right on the beach uh this is sort of what the fire looked like from an aerial point of view uh LA flights were still ongoing although they were reporting uh moderate turbulence for Boeing 74 47 which which you know if boeings are reporting turbulence you don't want to be out in uh in a little plane but uh let's just say it's it's pretty bad the destruction is is absolutely terrible there you could see a nice image this was actually shared by Elon where you could see the homes uh on the beach and what it looks like or looked like last night uh this was from this morning by the way this one that's showing right now so it gives you a little bit of a look of what the disaster looks like that's going on it's really bad uh it's really sad and uh I I just always encourage if there's ever a fire uh or a windy situation I always recommend people start thinking about preparing even if you don't think the fire is going to come to your area if you have electric vehicles the most important thing I could recommend to you is please please please charge your car uh that's an important one because if you got to go you got to go because if this is what it looks like like outside of your window let's just say it's time to go out the other side of your home because you're about to get cooked like an oven I also don't understand why these people are just standing here filming this I understand the winds are sort of blowing uh the fire up the hill and you'll actually see them subside in just a moment but it's just a matter of time because the moment one of those glass windows breaks those Flames come inside and cook you alive you inhale one breath of those flames you die like like it it doesn't matter if your home's on fire it's it's the breath it's the hot inhale of those hot gases that kills you almost instantaneously very bad very sad so please GTFO if there's fire around it's so dumb to be standing here but you know he's got to do it for the gram now we got to talk about Greenland this is pretty remarkable because we briefly touched on this yesterday Donald Trump talked about needing Greenland for national security purposes all right to understand Greenland you kind of this this is all right there there's a lot to this but let's just let me start by saying this The Economist hates Donald Trump and The Economist thinks Donald Trump should actually buy Greenland so uh you know this is kind of a way of them saying maybe he's on to something which is really rare and I always love knowing what people's political biases are because that way you could do that you know it's like oh they hate Trump and even they think it's a good idea uh so uh anyway uh okay so look here's China okay this is China this is the earth wow Russia's like you know over here uh so they they kind of touch each other uh and there's there's a purpose to this when China and Russia touch each other like they do right over here you don't really need to go through the ocean to trade between Russia and China we know they could just like I shouldn't say ship but they could just you isn't it weird that like cargo goes on ships uh uh but then we uh we ship things uh like a shipment comes on freight trucks it feels backwards but anyway uh so China you know they they're connected by land so we're not so worried about their ability to trade with each other they can trade through land over here but what does Russia want to do well what Russia and China they want to trade with Europe and the United States not so much Russia with the United States but China does right so this polar route uh requires a lot of ice breaking equipment to get through but look what's right here Greenland Greenland can literally intercept whatever Arctic trade is going on here or the polar trades that are going on over here and Russia and China have been using a lot of icebreaking ships to go through here Russia has been sending a lot of submarines in this area they want this area so this is of strategic and geopolitical importance uh that is Greenland is right okay fine so why does Trump want it well Russia builds military bases in the Arctic Russia is posturing Russia has been increasing their submarine patrols Beijing has been investing in mining projects in Greenland the Pentagon actually blocked three airports that China wanted to build there major trade routes that go along What's called the polar Silk Road actually avoid the Suz canal and have a much shorter route the sus Canal route to go basically from uh China to Europe which you can see on screen here this could take 25 to 45 days whereas this route over here takes 20 to 25 days obviously depending on where you start it's worth remembering though that this polar route is usually only functional during the winter so you're not going to use it all year long uh it is a much shorter distance it's about 13 to 15,000 km versus the 20,000 km by going all the way around and you don't have to deal with the whole Middle East crisis that's going on Greenland also has potentially 7 1.5 billion barrels of undiscovered oil 148 trillion cubic feet of natural gas and a lot of rare earth metals in fact The Economist says that 3% of the world's oil reserves are there 43 of 50 critical minerals are available to which are of strategic importance to the United States are available in Greenland and The Economist says paying say $50 billion you know some multiple of their small GDP for Greenland would be the quote deal of the century now the more I read about Green Greenland the less farfetched it sounds because initially when I heard about Trump wanting Greenland I'm like this sounds like I'm playing Age of Empires and there's no gold left on any of the islands that we've occupied and we're all going for the gold left on an island somewhere else talk of acquiring Greenland started in 1867 and occurred again in World War II but really never truly has taken place again until today president uh of Mexico Claudia shin also wants to rename North America Mexican America after Donald Trump threatened to rename the Gulf of Mexico the Gulf of America Duwan the founder of terraform Labs will go on trial in January of 2026 some crypto Bulls believe that Trump's crypto regulations and fed money printing will be the next big thing for crypto in 2025 this comes as Kazakhstan has shut down 36 illegal crypto exchanges in the country is building out a cbdc and the 1hour RSI relative strength index for Bitcoin is the lowest since it hit 60,000 so what's left well we'll all find out on jobs day won't we anyway thank you so much for watching this I hope you like the little chapter markers we have at the bottom if you want the Daily Wealth email make sure to join it over at meetkevin.com I'm not going to go through it today because there's way too much uh that we've covered in this so we'll cover it in a different one or just get the email over at meek kevin.com and also sign up for the alpha report at the bottom of the website me
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