Trump's Plan Is Working And America's Economy Is BOOMING

0:28Hello, everyone. We've got a lot to discuss today.

0:33Ladies and gentlemen, it seemed like everyone, literally everyone, was predicting an economic collapse just a few weeks ago. There was talk of recessions, depressions, and empty shelves on literally every single news channel. The academics and the economists, they were relevant for two seconds because they finally brought out a bunch of misplaced theories on why they thought the new economic policies being implemented were going to guarantee the financial pain to Americans. But guess what? They were all wrong. The United States economy is experiencing a historic economic boom. We got Q2 GDP numbers this morning and they blew away all expectations.

1:08Instead of the forecasted 2.4 % GDP number, the official measurement came in at 3%. It's just an insane outperformance for the economy. The economists were so wrong that you have to wonder how any of them have jobs left after a blunder like this. It's literally mind-blowing. So what exactly is driving this economic boom in America? Navy Federalist Chief Economist, Heather Long, she writes that the key drivers were one, a massive decline in imports after the Liberation Day tariffs. So negative 35 % growth there. And the second thing is that consumption was up 1.4 % compared to just half a percent in Q1.

1:41She also states that it's important to understand that business investment declined in Q2, which means that firms are a little uneasy about hiring or spending right now. But now here's the thing. And remember that all of this positive economic surprise comes at a time when we are already experiencing a very bullish macro backdrop. Adam Kubisi explains that the U.S. economy is red hot. We've now seen 63 straight months of U.S. economic expansion, seventh longest business cycle since 1854. The longest period without a recession, 2008 to 2020. That was 125 months. And guess what? Unconventional monetary policy and historically large budget deficits appear to be extending business cycles.

2:20No brainer there. So this is a great reminder that we're living through different times. The market has structurally been changed by the central bank's willingness to print money, artificially suppress interest rates, and ultimately debase the currency. That decision is a structural tailwind for the economy and asset prices overall. And here's the best part, in my opinion. Wall Street financial firms, they were predicting doom and gloom back in April. Retail investors were too busy ignoring the noise and buying the dip. So in hindsight, the retail investors look like geniuses because they participated in one of the most historic market recoveries ever experienced in history by American investors.

2:55Whether you like tariffs or not, you must update your mental model. The economic policies that are being implemented are working. We're seeing significant economic growth, zero sky-high inflation, and an unemployment rate that refuses to sound any alarm bells. The big question now is can we continue the bull run for months to come? I believe so. The data tells us that's likely, but we're all going to find out together. Yesterday, we got news of a brand new investment bank called OffDeal. They just raised a bunch of money because they want to use artificial intelligence to go and disrupt all of the traditional archaic investment banks on Wall Street.

3:30And guess what? I think this might work. Take a listen to this video here. We just raised$12 million to build the world's first AI investment bank. Why? Because for decades, Wall Street has looked like this. Endless revisions, manual work, and bloated teams. Legacy banks only chase the biggest deals. This leaves millions of small business owners with nowhere to turn for the most important sale of their lives. But what if there was a better way? We're building what Goldman Sachs would have looked like if it was started today, in 2025. It starts with educating the owner. Our AI analyzes millions of past deals and builds a data-rich valuation deck and breast-ready marketing materials.

4:09I then step in to perfect the story, adding the human touch that makes the deal stand out. When we go to market, off-deal AI intelligently scans millions of buyers to create a rank list based on strategic fit. Now, here's the big thing, is that everyone knows artificial intelligence is gonna put some people out of jobs, whether it's people who drive cars and self-driving cars will come in and actually replace them, or there's certain jobs that people say, you know what, AI and software is probably gonna be able to do this better than individuals. But what most people have not been talking about is what if AI is not just gonna put some people out of jobs, but instead it is going to disrupt entire companies?

4:43Think about these big investment banking firms. They've got tons of human capital. They've got people going in Excel and trying to figure out how to build models, how to convince people to sell their companies and find the right deal terms. But if artificial intelligence is as good as promised and it can start to do this stuff, all of a sudden, off deal, this AI investment bank, they'll be able to do things faster and cheaper and they'll be able to get people better prices for their businesses, and ultimately will make the market more efficient. It's what an investment bank's supposed to be able to do.

5:12And so if they can deliver on that promise, my guess is that this AI investment bank is actually gonna be super interesting, worth watching going forward. And the big traditional archaic investment banks, they better speed it up. I wouldn't count them out of the battle because ultimately they understand technology as well. But my guess is that they've got a lot of work to do to catch up to these guys. Now, if you also think about this AI, it's coming to other parts of finance as well. Many of you know that I've built something called CFO Sylvia. Sylvia is an AI personal finance product. Rather than have a personal finance product that tries to get you to save$5 on a cup of coffee, Sylvia was built for investors by investors.

5:49The whole idea is to use artificial intelligence to help you actually grow your net worth, grow your assets, improve your portfolio. I don't wanna save$5. I wanna get wealthier. I wanna figure out how to use the latest technology to be able to do that. And so you go and you hook up all your accounts to Sylvia. She takes your data and she starts running and crunching all the numbers. Next thing you know, you can ask her everything from what your cash balance is to what the latest trade deal is gonna do in terms of impacting your portfolio. You can also upload your tax returns and ask Sylvia, how do I get my tax rate lower?

6:19All of these things are now possible because of artificial intelligence. And so whether it's an investment bank, whether it's a personal finance product or the plethora of other opportunities people are gonna use this new technology for, artificial intelligence is going to assault Wall Street and the traditional firms have to make a decision. Are we going to sit by and get disrupted? Or are we going to be forward thinking? Are we going to go and embrace this technology and start to implement it every single day? All right, this is a big one here. JP Morgan and Coinbase, they just inked a brand new deal to link users' bank accounts and crypto accounts together.

6:52Now, this is pretty interesting because you've got a legacy firm like JP Morgan hanging out with a Bitcoin and crypto native firm like Coinbase. These two firms coming together is ultimately how we're going to bridge the gap between the crypto world and the Wall Street world. Now, Matthew Segal, Vanex, head of digital assets research, he laid it out perfectly. There's three things you need to know about this deal. The first, it's going to enable direct bank to wallet connection. It means you can go back and forth between the bank and the crypto wallet. The second is that customers will be able to transfer their Chase rewards to their Coinbase account.

7:23And third is that you will be able to use your Chase credit card to fund actual Coinbase balances for the first time ever. Now, of course, as I continue to say, I think that Wall Street and the Bitcoin world, they're all gonna come together and it's just gonna be called finance. This is a perfect example of where you see these firms. The legacy firms are trying to get into the Bitcoin world and the Bitcoin firms are trying to get into the legacy finance world, but it's all gonna end up in the same place. And so expect to see a lot of M &A, a lot of partnerships, and ultimately everyone's gonna try to compete for the new users, the new assets, and the new revenue that's up for grabs.

7:58Now, we talked earlier about how there's an economic boom going on. But of course, if there's an economic boom, that means people are going risk on. They want to invest in things that are going to go up a lot and do it very quickly. A perfect example of this comes from BarChart, who points out that investors have now plowed $139 billion into levered ETFs. It's the highest amount in history. So if you want to talk about risk on, talk about$139 billion getting plowed into highly levered ETFs. People just saying, if we're going up, I want to go up way more than the rest of the market. Before I let you go, I had to show you this gangster interview answer from Scott Besson, the Treasury Secretary.

8:35A reporter asked him where would he put his money right now. Here's what he had to say. You've been described as a global macro veteran and you run a hedge fund. In this moment, where would you put your money if you were still running one? United States of America. That's a pretty good answer to hear from the Treasury Secretary. I mean, just zooming out rather than trying to pick an equity, a debt or specific currency, say the United States of America. Why? It's still the greatest capital market in the world and capital flows to where it's taken care of best. And there's no better place than the U.S.

9:05of A. That's it for today's show. Hope you guys are enjoying this. I'm having a blast putting it together. Please make sure that you're following us on X and please, please, please make sure you subscribe on YouTube. I'll see you guys live tomorrow from the desk of Anthony Pompliano.