Howard Lutnick Says You'll Start Feeling The Power Of The Economy By Q4, $5B Created From Thin Air In One Day

0:00So Howard Lutnik came out and he said that you'll start feeling the power of the US economy by Q4 of 2025 Do you want to explain who Howard Lutnick is? Sure. So he's one of the people that Trump put in place. I believe his official title is Commerce Secretary. Commerce Secretary. And when you want to think about roles in the government, we are in a deficit of roughly$2 trillion. Doge's goal is to cut a trillion of waste and Lutnick is a counterpart. his goal is to produce a trillion dollars in excess revenue so then that way you erase the two trillion dollars in deficit each year and just to give you guys some context on this one too neil and i both highly recommend that you listen to this all-in podcast episode with howard lutnik and he's a tremendous guy he um he lost 650 of his um close friends and employees during 9-11 all in one day um because they're in one of the the towers and um but he's a tremendous entrepreneur.

0:57He has known the president for a very long time. And he's the one that actually recruited David Sachs and a bunch of other people to the cabinet. So he's known as a great recruiter. And so he basically started explaining stuff around the economy and stuff that I didn't even know in terms of what the balance sheet looks like for the economy right now. And his plan to grow the economy while Elon's is to cut. Both him and Elon, it's almost like a competition. Elon's like, I'm not just going to cut one trillion, I'm going to cut two trillion. And then Howard Lutnick is like, I'm not just going to make one trillion.

1:27I'm going to make way more than that. And after he joined, it's only been seven weeks he's been in office. He's like, I think I'm going to do a lot more than that. So he's hopeful. And that makes me hopeful, too, because this is a money manager. This is a smart guy. Yeah. I hope we start seeing the power of the economy by Q4. And he explained tariffs extremely well for someone like me who isn't as economically savvy as most people. and what he was breaking down was when there's times like japan's rebuilding we let them have high tariffs against us because it helps them produce more money and allows them to rebuild and we've done that with many other countries like kuwait for example and he breaks down that the country right now that has the highest tariffs against the u.s funny enough is kuwait but he also mentioned they understand the strategy of having other people having higher tariffs against the U.S.

2:23to helping them rebuild. But he's just like, why have we been doing this in 1990, in the 2000, 2010s, and even 2020 and beyond? He's like, there has to come to a point where it needs to stop. So look, some of the things you said, like the 50s, the 60s, the 70s, it makes a lot of sense. There's a lot of war and things like that, right? And there's a lot of war around the world. We're not talking like large conflicts, right? I mean, okay, Ukraine, Israel, like those are conflicts, but they're not world war type things. Now, the thing that stuck with me, So I'm looking at Neil's water over here. It's Aquapana.

2:52So that's from Italy, right? So if we put a tariff on like a 30 % tariff on it, then it was a dollar. The water's a dollar. It'd be a dollar and 30 cents here, right? Now, if we made water in the US, let's say like Arrowhead or something, right? Which is not my favorite, but let's just use Arrowhead. No tariffs on US made goods means it's a dollar. So we're going to pay more for goods outside of the US, but not necessarily things that are made inside the US. And I think that makes a lot more sense because a lot of people are like, oh, tariffs are very inflationary. And then Lutnik is like, no, no, no.

3:21What's inflationary is if we all of a sudden go from a billion dollars and we print another billion and that's actually inflationary because that hurts everyone. But that makes a lot more sense to me, that simple example. And the things that he says around what we're going to do. So there's that sovereign wealth fund. But there's also the fact that this external revenue source, that seems like it's very external revenue service, right? Instead of the IRS, Internal Revenue Service, the external one, they're like, we're going to make money for Americans. Anybody that's making$150 ,000, you're not going to be—$150 ,000 or less, you're not going to be taxed.

3:53And we're just going to get everything healthy. We're going to get the balance sheet healthy again. And these things all sound amazing. I hope it all works out. I had lunch this week with someone who's in investment banking, and they were giving me a great example of this because there's tariffs on steels now. when you look at the steel tariffs i'm going to use made-up numbers here but the percentages are pretty much accurate if steel used to cost a hundred dollars and with the tariffs now you have to pay 120 to get it from some other country like japan what's happening here right now is the u.s steel prices those sellers aren't charging a hundred dollars they're charging 115 to 120 because they know that if you have to buy it for 120 elsewhere, if they're still$5 under, you need it no matter what.

4:44They're making more profit. Another example of this, and this is going against what he's saying with tariffs. I'm just breaking down. I only have two examples. One of them is tariff-related. One isn't. The other one that I was a direct, and you were as well, all businesses really felt it. When President Obama released Obamacare, make it mandatory for health costs, did you know that it was more expensive to pay for Obamacare than it was to pay for insurance through UnitedHealthcare, Blue Shield, Blue Cross, and all the other health insurance providers? And do you know what the other health insurance providers did during that time?

5:20They kept the prices, or they jacked up the prices. They jacked up the prices to match obamacare yep and i'm not saying the concept of free health care for people who can't afford it or have cancer i'm not saying they don't deserve you know health care i wouldn't want to see anyone uh go sick especially if they didn't have the means to pay for it yep but it sucks on how everyone else was charged more money just because obamacare was more expensive right Right. And that's an example of just because there's a taxation on something else. Obamacare is a little bit different, but the steel example fits right in.

5:57It doesn't mean that, oh, we're buying at$100 from U.S. It's 120 overseas. So we're just going to buy U.S. Well, some of the U.S. people are jacking up their prices, too. So you're not really saving money in the steel example, which is really happening right now. Yeah. You know what's interesting, too? So I actually did get into part of the All In podcast where you talked about behind the scenes because it was Chamath. and it was Freeberg that were interviewing these people, Scott Bessett, which is a great one to the Treasury Secretary or Treasury Secretary, right? And then Director of Commerce.

6:26So these guys, by the way, Scott Bessett, super hedge fund guy, right? Like these guys have made a lot of money. They don't need more money. So when people say these guys need more money, they're trying to get more power. It's like, no, when you listen to it, it's like they actually love their country. And Howard Lutnick or Elon, the way they do this is, what do they call it? I think it's gratis services or something like that where they do their services for the government for free because even if you charge one dollar you have to go through contracts and things like that right they're doing work for free for the government and you listen to the energy and you listen like it's an all-star wait so they're all free scott isn't getting paid yeah they're not getting latnik's not getting paid yeah latnik and elon at least are not getting paid i think like david sacks is not getting paid um i don't know about besant um or the the vp i feel like they probably get paid david sacks sold off a lot of his crypto assets to like move the conflict and by the way he's going to be impacting everything in the next three, four years or so.

7:16And like, this is probably the time where you want to be invested in the market and he's out of the market. Right? Yeah. So my point is when people say, Oh, these guys want more power money, actually think about what you're saying and think about what their incentives are. They just love the country and the work that they're doing. They say, everyone that they see in the white house right now, everyone's happy and excited. And they say this is the best time in their life right now. And I truly believe that this cabinet is one of the best, um, that I've seen in my lifetime. I think because everyone in there is very, very competent.

7:42And that comes down to hiring at the end of the day. But let's just go back to this real quick and then we can wrap it up. I do like you and I, right? We're all, okay, we're entrepreneurs. We care more about bringing costs down, right? So that does come to labor sometimes too. I think when you look at Howard Lutnick or Trump, their whole thing is, look, you know, sure, you can build cars cheaper in Japan or China or something like that, but that actually affects the workers in Detroit, for example, right? And I think us, if we put it from like America first example, it's like they're, they are going, they're trying to go U S first because they're trying to keep more jobs here.

8:15And they're trying to us, they're trying to get people, Americans to buy more American products. Um, that way we can focus on us instead of trying to, you know, police the world and, um, you know, be, be very generous to everyone else, you know, within terms of like, they can tear off, tear off us, but we can't tear off them back type of thing. So I think it's, um, it's, I feel like they're looking within and I feel like that's, you know, hopefully going to be helpful to us for the long term. So I'm hopeful. They just got to figure out how to make it where if they tariff another country, U.S. companies don't just jack up their prices 20 % to match what other countries are charging and just gouge the American citizens and make higher profit.

8:51I don't think people like hearing this, but I think that the way the U.S. is looking at it now is the way how China has been for a while, where China just focuses on within. And now the U.S. is focusing more within. You look at China's progress. You look at their high-speed rails, how clean it's gotten, how much safer it's gotten. that the quality of life and everything it is like it's next level so dude china's night and day cleaner from 15 20 years ago yeah have you been you've never been right no but i've seen the videos you gotta go see you've been to hong kong i've been to hong kong but that's not that's not the same thing hong kong is very nice yeah it's nice but it's not as nice like japan japan is clean but it's kind of like you know everyone has like drives like old cars and things like that like everything's old like you know no one's lived in japan for a while oh you did yeah like he he he knows how to speak the language too.

9:33But my point is really, you can see Japanese. Yeah. All right. A little bit. Um, but point is, um, I think just like business too, by the way, let's tie this to business for a moment. If you focus on yourself first and then the analogy I gave Noah was like, you can try to take care of everyone else, but you're going to burn yourself out. But if you start a really strong bonfire, you're going to attract the people that want to be around you. But our whole thing was as America, I think we're trying to take care of everyone else. And then like, you know, and I think it was good intentions, right?

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11:46No issues with versions or miscommunication. Whether you're starting from scratch or using one of their templates, Framer lets you focus on design while handling the technical side for you. Animations, responsive layout, search optimization, and all the things that matter. Ready to build a site that looks hand-coded without hiring a developer? Launch your site for free at framer.com and use code MS to get your first month of pro on the house. That's framer.com, promo code MS. Framer.com, promo code MS. Rules and restrictions may apply. The one thing that I hope the administration can end up doing, again i'm not a politician i'm not an economist i don't know how this is going to impact the economy what's going to be good or bad but i just i do agree whether someone makes 100 150 or 200 from a federal level i wish they weren't taxed 200 grand yeah a year yeah because depending on the city you live in like if you live in los angeles california 150 000 does not take you that far i get if you live in missouri in the middle of a place where you can buy a home for four or $500 ,000 and it's even more expensive there now than it used to be 10 years ago.

12:51Maybe 150 grand works out if your spouse also makes another 100 grand, so 250. But in major cities, it's not enough capital. And I just don't understand how some of these people are able to get by. And by the way, their whole thing is you look at Scott Bessent and you listen to Howard Lutnick and even Trump as well. There might be some short-term pain, but they're trying to balance it where there isn't a recession. But I think they're indicating there might be a recession, But I think if you guys look at the long term, maybe 20, I think Scott Bessett said 2028. I think Lutnick is saying Q4 2025 or 2026.

13:23He's saying Q4 2025, you'll feel the power of the U.S. economy. That sounds good to me. That sounds good to me. I totally missed that part. I didn't hear that part. That wasn't an all in. What was it from? It was a news clip. Maybe Fox or one of those channels. Okay, got it. Yeah. All right. Well, let's see what happens. I'll actually find out what news station it was on. It was Bloomberg, Facebook. Where's this clip from? Probably Fox. Breaking news. Dude, I got an ad. Dude, you know what? While you find that, can we talk about how Howard Lutnick created$5 billion from thin air in one day? Let's talk about that real quick.

14:03Okay. How did he create$5 billion out of thin air? So he created these. Okay, go ahead. By the way, it just says the live breaking of Bloomberg. Okay, see, nobody cares, Neil. All right. Okay, so$5 billion created from thin air in one day. Do you care about this one? I do, but it's probably related to the U.S. economy and something he did with the government, and I can't copy it. No, we can't copy it. Yeah. Okay, guys, this is how Howard Lutnick created$5 billion from thin air in one day. So he created the Trump gold cards. That was his idea. The Trump gold cards are basically where you can pay$5 million, and then you basically have a green card and you can start a business in the US if you want because a lot of people want to be in the US, right?

14:46And they're like, okay, if I'm in the US, I might as well start a business anyway. So I believe it's his idea, but he's already sold 1 ,000 of these. And he basically says that 37 million people in the world qualify for this thing. And look, I think what, if you could sell 1 ,000 of these, if you could sell a million of these, what is that? Like, that's a lot of money, right? He said 37 ,000 people. 37 million people. 37 million people. And so far, 1 ,000 people have bought this thing already. for five million dollars so you can buy it yeah and you get u.s citizenship yeah but you no no no you get a you get a gold card which is it includes a green card with it so you're instantly in and then as long as you don't do anything bad you're not evil then like you can start a business here and whatever and you get a uh typically if you have a green card you get citizenship within like five or seven years or something like that i don't know about that piece but i think this is smart because they're leveraging the desire for people the the the united states brand that's a form of marketing wait i'm confused on this why do you need to spend five million dollars to set up a business in the united states you don't no to get it's basically to get a green card and basically to become like on your way to a citizen without having to pay global taxes you and i have to pay global taxes because we're u.s citizens yes so if you pay if you pay the five million you don't pay u.s taxes yeah yeah which is actually a good deal for like if you know like chamats said you know if he was working at when he when meta he could have sold out his stock he's like i if i had this i would have just bought this would have been better for me um so i would trade my u.s citizenship for five million dollars get the green card and i don't have to pay taxes yeah but that won't work for me let me know when you do it you can't do it you have so much uh tied here i can't just renounce everything i have a dual citizenship oh yeah yeah you're british uh-huh yeah but even then it won't work for me because i actually live in the united states so i have to pay u.s taxes which is fair this is a pay-to-play citizenship but more than anything i think it's so one trump gold card Okay, he branded it well.

16:36But two, the real branding is around the United States brand. Yeah. Yeah. I think he'll get way more than$10 ,000 or$20 ,000. It's$1 ,000 right now, but I think he's going to sell way more. Yeah. It's so early right now. I think you can get to$1 ,000. I mean, not$1 ,000,$1 ,000 ,000. $1 ,000 ,000, yeah. And so that's$5 trillion, I think. Over four years? Yeah. I think you can get there. Yeah. Okay. Well, then we're good all of a sudden. And by the way, that U.S. balance sheet, just because we didn't cover that piece. So, um, let Nick thinks the U S balance sheet is 500 trillion, which means we're rich, right?

17:05Even though we have, you know, the 36 trillion in debt or whatever, and then we make like 25 or something. Um, but Trump thinks we have the balance sheet is one quad quadrillion, a quadrillion, which I'd even know. I can't even process that number. It's a thousand trillion. It's a thousand trillion. Yeah. Cause Lutnick is at 500 trillion. Trump is at double. Okay. Okay. Double or five times? Double. Wow. Well, anyway, there you have it. So we're rich balance sheet wise, but the way we're operating the business as a United States is not that great. So they're here to try to fix that. That is it for today, guys.

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17:55Thank you.