Consumer Confidence Plummets, Trump Has New Crypto Coin, Shocking Housing Data
Mar 26, 2025
auto_awesome
Chris Irons, a macroeconomics and finance expert, joins to discuss the startling drop in consumer confidence and its correlation with historical economic downturns. They explore the implications of a new cryptocurrency launched by a political figure and delve into Tether's role in transactions. The conversation highlights the widening economic gap between everyday Americans and the rich, while critiquing government policies affecting housing prices. Irons also shares insights on Bitcoin's potential and the skepticism surrounding new crypto ventures, sparking intriguing debates throughout.
Consumer confidence has plummeted to a 12-year low, highlighting a stark contrast between actual sentiment and mainstream economic narratives.
The complexity and counterparty risks of stablecoins, including Trump's new cryptocurrency, raise concerns about their actual utility in decentralized transactions.
Significant government regulations inflate housing costs, suggesting that reducing these regulations could improve affordability in an increasingly unaffordable housing market.
Deep dives
Declining Consumer Confidence
The podcast discusses the recent consumer confidence data, revealing a significant drop to levels comparable to those experienced during the COVID pandemic. The index fell by 7.2 points to 92.9, with the expectations index reaching a shocking 12-year low. This steep decline reflects widespread pessimism about future income and job availability among consumers, particularly affecting those over 55 years old. Despite the concerning data, mainstream financial news continues to suggest that the economy is thriving, highlighting a disconnect between actual consumer sentiment and the narratives pushed by financial elites.
Cryptocurrency Skepticism
The conversation shifts to the complexities and uncertainties surrounding stablecoins, particularly Trump's new cryptocurrency. The hosts express skepticism about the utility of stablecoins, noting that they seem to add unnecessary intermediaries to transactions designed for decentralization. They highlight the counterparty risks inherent in stablecoins, contrasting them with Bitcoin, which is often praised for its decentralized nature. The hosts suggest that while some stablecoins like Tether may offer transactional utility outside the U.S., their benefits and underlying mechanics remain convoluted and hard to justify.
The Impact of Regulation on Housing Prices
The discussion uncovers alarming data about how government regulations significantly inflate the cost of new housing. It reports that regulations contribute approximately 23.8% to the final price of a new single-family home, which amounts to about $93,000 in added costs. Multifamily housing costs are even more affected, with regulation accounting for nearly 40.6% of expenses. This raises serious concerns about the sustainability of housing prices in the context of an economy seeking affordability, suggesting that reducing regulations could lead to substantial price drops.
Inequality and Inflation
The podcast addresses concerns about how current monetary policies exacerbate economic inequality, particularly affecting lower-income households. The hosts argue that inflation disproportionately impacts those without asset ownership, as the rich benefit from rising property values while the poor struggle to afford basic necessities. This widening wealth gap is critically tied to the monetary policies supported by both political parties, resulting in the average consumer feeling the brunt of rising costs. The hosts emphasize the need for policy changes that reduce inequality rather than further entrenching it.
The Risks of Leverage in Asset Ownership
The dangers of leveraging assets in an inflationary environment are highlighted, particularly how individuals who can borrow at low rates amplify their wealth while the typical consumer gets left behind. The podcast explains that leveraged investors benefit more from inflation as their assets appreciate, increasing their purchasing power significantly. In contrast, those who purchase assets outright without leverage do not see these compounded benefits, leading to a growing disparity in wealth accumulation. This discrepancy underscores how the financial system currently favors individuals and corporations that can access cheap credit.
The Feasibility of Bitcoin's Future
Reflecting on Bitcoin's journey, the podcast considers whether it can achieve broader adoption beyond speculation, arguing for its potential as a store of value. The hosts are optimistic about Bitcoin's role in offering a decentralized alternative to traditional currencies and note the existing infrastructure being developed for its use. However, they acknowledge the hurdles it faces, especially as a medium of exchange, and stress that achieving a network of goods and services priced in Bitcoin is crucial for its long-term success. The discussion suggests that while adoption is currently limited, there are ongoing efforts to enhance Bitcoin's usability and acceptance.
The Rebel Capitalist helps YOU learn more about Macro, Investing, Entrepreneurship AND Personal Freedom.✅ Come to Rebel Capitalist Live here https://rebelcapitalistlive.com/
✅ Check out my private, online investment community (Rebel Capitalist
Pro) with Chris MacIntosh, Lyn Alden and many more for $1!! click
here https://georgegammon.com/pro
✅Rebel capitalist merchandise https://www.rebelcapitaliststore.com
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
