Ep 468: Dollars, Gold & Bitcoin by John S. Pennington Jr.

Transcript

hey welcome to the hype with us podcast I'm your host Daniel Martinez today we have co-host Anthony gaona and a special

guest Mr John S Pennington JR hello [Music]

everyone are you a bestselling author did you hit no no no no not bestselling author I'm an author now though I got my

first my first business book just just hit the uh Amazon and audible.com just a few weeks ago so so let's start off with

the book because I have my copy here which is dollars gold and Bitcoin nice

and oh and and it's signed look at that yeah there you go I signed it for you at

our event that I saw you a few weeks ago we were there and I signed it for you yeah no I app I appreciate you I think

we're we're gonna we're gonna have fun today I'm really excited about the conversation today um I heard you speak in Utah and it was just interesting

about like stocks manipulation your experience um can you give like a 30C

pitch them on your experience and what just kind of people know who you are if they' never met you before yeah yeah sure um uh John S

Penington Jr I'm a entrepreneur from rata college and uh mainly in funds I

mainly speak on the fund Market because I have a lot of experience in investment funds hedge funds uh real estate funds

um as you as some of you might know syndication is where you are going to do a real estate deal and you bring in like

five or six investors and they wi are the all their money into a you know a title company and you do a loan on a on

a or a buy a buy a piece of property a fund is the investors have already wired

their money into a one account that I control as a general partner and the fund goes out and purchases that

property or lends on that property or does something with that uh that capital and funds are you know the blackstones

of the world the black rocks of the world uh KRS those the funds of the of the world are controlling the world

these days they're buying up everything they're buying up single family homes they're buying up uh Apartments they're

buying up pretty much anything you can get your hands on a fund is out there trying toh Corner that market so that's

uh that's kind of what I you know my specialty is on that so Le let's just get into it the let's start with the

conspiracy theory okay it's a really it's a really good one and I think you guys are gonna like it so let me just

tell you where the book The impetus of the book dollars gold and Bitcoin came

from so I'm I have an economics degree years

ago graduated from college and I've always just followed economics and so in

December 2018 now get this the Federal Reserve says Hey the economy is doing really really well next year in 2019

we're going to raise interest rates three times in 2019 great this is

December less than 45 days later in in the early part of December January 2009

19 they said oops we're sorry we're not going to raise interest rates three times in 2019 we're going to lower

interest rates three times in 2019 and I said you know my my economics brain went into overdrive like what just happened

something big just happened but I didn't know what it was so I kept my antennas up right and so two months later in

March I read this report that said that over $3 trillion in europe3 trillion

doll of Sovereign bonds like you know German bonds and Spanish bonds are being

traded at zero or negative interest rates and I was like I have an economics degree I've never read a book I've never

read a paragraph I don't even know what an interest negative interest rate is but think about this um you guys a

negative interest rate is if you purchase this bond this German Bond at a

negative interest rate you are mathematically guaranteed to lose money

why would that even exist I don't know I don't know but that was March of 2019 so

three months later I you know I got my antennas up just trying to figure out what's going on in Europe and three months later June July it's $1 13

trillion doll of negative interest bonds being traded all you know and I I'm just

I I just don't get it I just don't get it I'm just I just flabbergasted but then I thought about it wait a

minute the number one job of the Federal Reserve is to protect and promote the US

dollar sure I know they have a job to keep unemployment low and GDP High I I

get all that I get all that right and inflation down I I get that right but

underlying everything the the government's job if they keep the num if they keep the the dollar being uh

accepted all over the world and they create insation demain for the US dollar

their number one job is to protect and promote the US dollar so there's a a few ways that they do that one they tax

everybody in US dollars so I I can't pay my tax in B Bitcoin or chickens I gotta

pay in usrs so that creates Sensational demand the other way that we'll talk about in a minute is most uh they and

sit they insist with using the US Navy they insist that all countries trade

crude oil in US Dollars that create Sensational demand they also use the Swift system the bank-to-bank wire

transfer called the Swift system that is a US dollar based system and

another way they would do it is they would you know to compete against Europe if you're gonna borrow money in the

world at you know Europe with negative or below interest negative interest

rates or zero interest rates the Federal Reserve lowered their interest rates down to almost zero basically they're

saying if you're going to borrow money borrow from us borrow from US dollar it's almost zero and it's it's the World

Reserve currency so for the next 30 if you take a loan for the next 30 years you have to get US dollars to pay those

loans back you can't get chickens or Bitcoin you have to pay an Us doll so those four things are are ways that the

the government creates insatable demand for US Dollars and this started me on

the uh the hypothesis of the book dollars gold and Bitcoin of like what is going on the Federal Reserve has a

secret word know you have world World War I World War II but I think World War

III has kind of already started but it's not a war of guns it's a war of currency

domination and uh give you some history in 1933 this is three or four years after

the Great Depression the great crash you know stock market crash I don't know if you know this but your grandfather my

grandfather could not own gold in the United States of America it was outlawed

you can have a gold watch sure gold watch no problem you know a gold ring no big deal but if your grandfather my

grandfather was caught with five gold coins in his pocket he could go to jail

did you guys know this whoa no never heard that this is United States of America right and what they did was it

was patriotic what they did was in May 1933 the president of United States had an executive order if you own a gold bar

gold coins you must sell those items to the US government for like it was $35 an

ounce or something like that right right around there and they're going to take the gold and put it in Fort Knox and then they're going to sh up the US

dollar by gold with gold and therefore we would get that would get us out of the Great Depression because worldwide

we have a we weak currency we're in a recession depression and we've got to sh up so it was patriotic so if you knew

all your friends you you would encourage all your friends to sell that goal to us to start it was patriarch to help the

country out so World War two came along and we got in the war late and so what

we're doing is we're selling our grain our tanks our bullets we're selling them overseas all these countries yeah and

they're sending us gold for that because we came in the war really really late but we are accumulating all this gold

for selling so by 1944 the war is almost over it's almost done and we pretty much

know we're going to win why it was just mathematics it was like the United States was producing like 50,000 planes

a year that's a thousand planes a week was coming off our assembly lines Germany's making you know two to 5,000

planes it's just math we're making like 20,000 tanks they're making like 500 tanks it was just it was just

mathematics mathematics at that period of time so anyway it's it's uh it's 1944

and there's a place in New Hampshire called Breton woods and they invited over a thousand people to come to

brettonwoods New Hampshire from all the countries all over the world and they were going to reset the currency and

what happened was at Breton Woods it it became known as the Breton Woods agreement they said basically at this

point and this is this but I'm about to tell you it's crazy okay listen to what I'm about to tell you at that point 1944

okay the United States had 66% of all the gold bullion in the world

whoa can you believe this so it's it's crazy right and so they said listen the

the US dollar is going to be backed by gold but the French Frank is not going to be backed by gold anymore it's going

to be backed by the US dollar which is backed by gold so it had there was that

that's kind of how it went now another thing that came out of the Breton Woods agreement and it it didn't say this

really but basically if you wanted to trade crude oil around the world you

would probably need to get US dollars to make trades because that's the common denominator across the country countries

and so as it went on years after year after year basically after World War II

everyone's Navy is obliterated Russia's Navy's gone China's Navy's gone Japan's

gone Italy's na everyone's Navy except a little bit of Britain and the US basically had their Navy intact and a

Navy is one of the most expensive things for a country to you know have and so

they basically said and this like I said it wasn't written in the agreement it's basically this listen if you trade oil

in US Dollars you don't need a Navy the US Navy will protect your shipping lanes

so a little country somewhere that has some goods and services they want to sell across the world if they trade in

US dollars for oil well if there's any Pirates the US Navy just come by and smash those pirates and that was kind of

the agreement and then in 1971 so the gold compation they they call it 193 1971 you couldn't own gold

but in 1971 president deal of France he sent his two ships over to one

of our ports on the Atlantic coast to pick up gold because he knew we had abuse the system we kept printing more

and more US Dollars than we had gold and so if you my grandfather could not turn

his $100 bill in for gold but if if someone lived in France a a French citizen they could turn their $100 bill

bill in and they could get gold for it but a US citizen could not but in 1971

president deal sends is uh two two big ships over to our one of our ports and says we've brought all all of our US

dollars here they are we want our gold back and so this is um it's hilarious

it's um Sunday night August 15th

1971 President Nixon gets on the on the TV and he says basically the market

manipulators around the world are trying to manipulate the US dollar and he says for temporarily we're going to suspend

all gold bullion backing the US dollar and that was it he just said it and the

next morning the marcet opened and you couldn't exchange your dollar no one in the world can exchange their dollars for

gold and president de gal had to send his ships back to France with no gold that's what happened and so and so right

after that Saudi Arabia made an agreement right about the same time with the us us that they would sell no oil

without US Dollars and that's when it became the Petro so the evolution of the US dollar kind

of goes you know goes through a system of gold and then the Petro dollar and today the United States Navy the SEC the

the IRS the the president of the United States and the Federal Reserve their number one job is to protect and promote

the US dollar and so that's where the impetus of this book came from the history of that but the craziest thing

happened the I'm G get my my years right right 2020 Summer 2020 okay get this I'm

I'm an economics guy and I'm I'm still studying this whole negative interest rates in Europe thing I'm studying over

and over I'm trying to really focus it on that and what happens is JP Morgan one of the largest investment banks in

the world is sued by the SEC and they lose and JP Morgan has to pay a fine now

get this $930 million fine to the SEC what did

they do they were convicted of manipulating the precious metals markets

for nine years so my economic brain goes wait a minute someone can manipulate the

worldwide precious metals markets and they did it so good that the SEC find

them almost a billion dollar fine but guess what no one went to jail as far as I know no one to jail and so what I

think happened was the SEC the Federal Reserve everyone

at that point realized something was happening with bit Bitcoin and that Bitcoin could become a competitor to the

US dollar so since the SEC figured out in the summer of 2020 how you can

manipulate a market way larger than Bitcoin they took a one year to July of

2021 to figure out how to manipulate it and they learned what they they learned it all from JP Morgan and so in the

summer of 2021 Bitcoin was about $330,000 somewhere around there but get

this July August September October November it goes from 31,000 to 69,000

it's all-time high and now what I'm about to say is is Theory but this is

basically I believe one of the ways you control a market if you need 45 days of

trading volume so if cocacola stock trades a 100 shares a day and you had

4500 shares you would have 45 days of trading volume if it trades a th000 shares a day You' need 45,000 shares so

if Bitcoin trades a th000 coins a day you would need 45,000 Bitcoins does that make sense to

try to control you might need 60,000 60 days of trading volume but whatever that's the theory so this what this what

I believe happened to control it they start the Federal Reserves operatives a clandestine this is my conspiracy theory

started purchasing Bitcoin in July and they had to buy byy byy buy byy byy byy

byy byy by byy and by the time no November comes around they've got enough Bitcoin to start you know trying to

control it and these four things that I'm about to tell you all happen in November okay November 2021 number one

Bitcoin hits an all-time high of $69,000 number two Hillary Clinton

says on through a microphone now Bitcoin could Dethrone and I'm not I'm not

quoting it perfectly Bitcoin could Dethrone the US dollar as the world Reserve currency or could threaten the

US dollar all right number two the SEC extends their lawsuit against Ripple

xrp now xrp the coin Ripple has one

purpose it has to speed up worldwide transfers of bank bank bank to- Bank

transfers it goes around the Swift system now remember the Swift system is a dollar based system but if you go

around the Swift system you don't need US dollars so the SEC extends their

lawsuit against Ripple for really no apparent reason all right now back back to Hillary Clinton Hillary Clinton I

love to talk to people or listen to people who just love to get in the microphone and just spew things now you

could you could think of two ways now this what my book kind of projects on the reader I stopped living my life by

predicting the future years ago I started just running probabilities and

probabilities I run a probability what's the probability of X happening what's the probability of why happen so here

let me ask you a question Hillary Clinton says this in the exact month that it goes you know to the high she

says it's going to it could it could threaten the US dollar what's the probability that she just said that off

the cuff just as a funny thing or just had a random thought or what's a probability she was privy to earlier

meetings earlier that month that she had heard what was going to happen to bitcoin through the Federal Reserves

clandestine plan and to tell her mem people who follow her to show them that

she's really smart and she's she says oh by the way the US dollar could be threatened by Bitcoin there's the

probabilities there right now the fourth thing that's most intriguing is in November 2021 the secc had two

applications for ETFs for Bitcoin they had an ETF that wanted to sell spot

price in Bitcoin the actual Bitcoin and they had an ETF that wanted to just sell the Futures and a lot of times in life

to know what's going on you you find out what people don't do that tells you more

than what they do do the SEC approves an ETF that can use Futures to

buy and sell Bitcoin hypothecate and they denied an ETF that

wanted to SP sell at the spot price because JP Morgan in their lawsuit had

used the Futures Market of the precious metals Market Market to sell paper and options and paper and options they sold

way more or tried to sell way more options than actual existed in gold or

silver and so that way you can hypothecate and that's one way you can control the market so those four things

all happen in November 2021 and therefore that's where my thesis of my book came of dollars gold

and Bitcoin to show that the Federal Reserve is going to do anything they possibly can to control Bitcoin now we

both know all of us know on this on this call that a month or so ago the SEC finally approved 11 11 ETFs

that can buy and sell spot pric Bitcoin and there are two interesting things I want to tell you and I haven't read all

the applications but the SEC said they were delaying for two or three years we can't have a spot price can't spot price

we're working with the applicants to change and modify their applications I don't know what that that means when the

SEC says we want Blackstone to change their application I don't know what that means but when the application was

approved there's one paragraph in there that says this this is crazy it says

that Blackstone when they run their Bitcoin ETF they can

basically write more contracts than actually exists of their Bitcoin in

their spot price that means they can hypothecate it why would you put that in

your Bitcoin ETF spot ETF doesn't make any sense and the second thing which is

very strange to me is there's a line in there that says and I don't want I don't know why Blackstone would write this in

but it basically says this and I'm paraphrasing again it says if Bitcoin ever

forked Blackstone doesn't know which Fork they would take and I don't know

why you would even write that into a into a I don't I don't get it I don't get it so I've talked a little bit so it

so we'll stop there for a minute and and we'll go questions or comments what do you guys want to talk about so tell me

where tell me if I'm Looney or tell me you got questions tell me I'm do I I I I like the I like the whole conversation

of I I think it's funny because a lot of people like oh the they the United States removed the backing of gold back

in the 70s but now they're backed by the military yeah so the the military is

gonna align everybody to their will whether people like it or not yeah I think that's the there's one see there's

one Bitcoin is a great I love Bitcoin I think it's a great idea but they Bitcoin does not have a Navy Bitcoin does not

have an army no it doesn't Bitcoin does not have a a strong arm that makes people take it right the US does and I I

know people are you know you know saying the US dollars are the dollarization in the world but I think it's 1960 the US

dollar was 45% of all U World Reserve currency in 2001 it was 70 I think

73% of all us Cent World res res currency and now 2024 it's

58% so of all World Reserve currency 58% is US dollar now number two is the Euro

and the euro is 20% and people say well no what about the Chinese youan look it's only

2.7% the CH look China has had the fastest growing economy of any economy

ever on humankind for 25 years 30 years and they went from World Reserve

currency from 0.02 to now they're 2.7 of the total World Reserve

currency so you know when people say the yuan's going to take over I'm like man

if they have the same growth for the next 30 years are they going to be 7% I I I just don't see the math on how

they're arguing that the uan is going to take over over that over that money so anyway it's it's out there but um it's

it's the US dollar is so far ahead I realize it's coming down but it's it's it's way up there and it's going to be

hard to knock that knock that off the top so man I love these conversations I feel like I we could I feel like I could

talk about this for 10 hour straight so what do you think's going on is it is it the like the Federal Reserve teaming up

with other entities like like these black rocks and stuff to just go ahead and start growing wealth that doesn't

exist again kind of the same way Chase did with gold yeah so I'm sitting there and my mind is going wait a minute you

know they waited and waited and waited and they they they struck a deal with I think JP Morgan hey you're going going

to help us promote and protect the US dollar by protecting all competitors and

if you don't you're going to have the Wrath of the you know of the United States government okay let's go back to

November 2022 that's just a year there not a little over a year ago okay

so there's a news report Wells Fargo City group and the FED New York Federal

Reserve is going to test their digital dollar this is in November

okay so four or five months later this is March

2023 three banks are closed silvergate Silicon Valley Bank and Signature Bank

okay all three of those are crypto Banks it's not like they close like some

random banks in November they say we're going to test our digital dollar and four months later we're closing the top

three crypto banks in the country they're making room for their product they're Reinventing the US dollar into

the digital dollar and then uh you know that month they had another lawsuit against bitrix they had another lawsuit

against another crypto fund I mean I don't think it's not coincidence right and so they're protecting their number

one product because listen the US dollar people say well let me put this

way Americans love pancakes they love love love pancakes I go Saturday morning

down there at Pancake House it's a 30 minute wait to get pan really it's pancakes so when people say it's selling

like hotcakes they need to stop saying that it's selling like the US dollar because listen the US dollar is the best

product ever invented by mankind they make trillions of them and

you two guys and me we'll work 80 hours a week to get more and other people will lie cheat and steal to get them then

they'll make another trillion and guys like me and you will work 80 hours a

week to get more and other people will lie steal and cheat to get them it's insation demand there has never been a

product like this in the history of the world and no matter how many they print how how many they make everyone wants to

gobble them up and so if you had a number one product like that you would do everything in your power to protect

it you'd use the Navy the SEC the IRS the president of United States confiscating gold you would use

everything in the world because as long as that works then everything works for America around the world as long as the

US dollar is working I love it this go ahead Danel I was going to ask so I

think I think I want to ask this next question so a lot of people are concerned about the GDP debt growth that

has growing in trillions every every few hours are you alluding to that the more we get in debt the actually stronger the

dollar gets because now people actually owe us in dollars yeah so yeah yeah that that's a comp that's a really complicate

question we don't have time to do that that but but I you think about one thing so interest rates just the year or so

ago were at 0% almost zero pretty close to zero yeah and the Federal Reserve

jacked them up faster than any time in history well a few years ago China has

been knocking on the door of Saudi Arabia hey Saudis we're your one we're a really big customer of view we want to

buy oil not using US Dollars we want to buy oil using the uan and Saudi Arabia

has so far that we believe is stuck to the US dollar but they're getting 10 to sell to the the Chinese right and so

the US is like well we've got now an enemy a competitor the China is getting

big big big big big and they're going to try to Dethrone the US dollar

so one way to combat that we we know that China has a lot a lot a lot of us

treasuries and they've purchased them really low at really low yields so and

we know they're going to start selling them they've told everybody we're going to start selling large amounts of us treasuries so if we jack up the interest

rate to five and a quarter five and a half percent every time China sells their us treasuries they get killed I

mean they're losing lots of money okay they get killed so you ever heard the

you ever heard the uh idiot waiter analogy let me let me just share it with you it's really quick there's this idiot

waiter and we we all we let's say we all work at this restaurant and there's this one dude he's an idiot waiter he's and

he says I'm really bad at math that's why I'm waiting tables because every time that he you know someone pays him

and he takes the the cash to the cash register and brings it back he always brings back the wrong change and when

they when he's confronted on he says well I'm sorry that's why I'm a waiter not an accountant I'm really bad at math

and we all know everyone all the Raiders we all know he's really bad at math but then the owner does something weird the

owner of the restaurant does an audit on his last 100 customers and he finds out

that of the last 100 customers when the change came back it was always in favor

of the idiot waiter but wait wait wait wait wait a minute if he's really bad at math then shouldn't 50% of the time the

the change be in favor of the customer and 50% of the time the change being paid for him yes that's right but if

it's in favor of him all the time he's not the idiot we're all the idiots for

believing him right okay so let's go back let's go back to the Federal Reserve the Federal Reserve is sitting

there going oh inflation's going up it's transitory next month inflation going

it's transitory it's transitory it's Transit we're not going to raise in it's transitory well I I I give you an

hypothesis here maybe the Federal Reserve needed the inflation rate to go

to 9% so that they could justify a 5 a half% interest rate

to uh uh hurt China to protect their number one

product so if you need a N9 because if they said if if if inflation was 2% and

they said we're going to raise interest rates to 9% everyone have a fit everyone just have a fit but if inflation's 9%

and they rais to five and half percent everyone's well okay okay we can live with that maybe I'm just saying maybe

they wanted it 5 a half% so that they knew when China starts selling all these huge you know treasuries they get killed

and that hurts their economy I'm just saying if if my theory is true that the number one job the Federal Reserve is

protect and promote the US dollar then maybe they said it's transitory inflation is transitory so that it would

start running away it would start going to 4 perent 5% 6% oh crap it's 7% we got

to raise interest rates fast and everyone was okay with it back to the idiot waiter analogy don't listen to

what they say watch what they do and that's kind of where I get down there oh I got one more

for you here so China's economy is really really doing bad right now okay

and one of the reasons is because of us pulling out a lot of companies over 300 companies in the last three or four

years have left China Japan companies have left China Germany companies have China and also a lot of us companies

have love China and guess where they've gone they've gone to countries like South Korea Thailand and India countries

that trade us oil for US Dollars and so what why why hurt

China right now I'm sure what's going on in Saudi Arabia and this is the US so

happy about this the Saudi Arabia Prince and his group are so glad that they

didn't take the Yuan three or four years ago for oil they would have a bank account full of Yuan and they are

so glad they didn't do that it's a game it's the what I'm trying to tell you about this this this currency war in

this book my book please buy my book dollars gold and Bitcoin in this what I'm trying to say is it's the biggest

game ever in created by mankind it's so large you cannot it's it's bigger than World War

II it's it's incredibly this game of World currencies with the US dollar I

got to give you one more so there's two people we know of that tried to trade

large ounts of oil not using US dollar momar Gaddafi of Libya and sodam Hussein

of Iraq yes once they did that within just a few years they were both they both

died and I'm not saying the US killed them I'm saying us backed away from them

and let other people go after them their bubble was protected once they started doing that now there's a third guy that

started to do this just a while back Vladimir Putin so Vladimir Putin Russia

invades Ukraine okay think of the dialogue here Russia invades Ukraine and

our US President says we don't like Russia we would like Russia to get out of Ukraine and they do this for months

we get out of Ukraine get out of Ukraine get out of Ukraine then Putin says you know what we're going to do we're gonna

stop selling our gas for US Dollars we're going to start selling only a rubble and only in Gold that's all we're

going to be able to do okay the next week or next two weeks the US President

says we need a regime change in Russia whoa that's way different than

saying we want you to leave Ukraine that's that's hinting towards Saddam Hussein and momar Gaddafi and so I don't

know if you know this but there are two pipelines that go from Russia under the Baltic Sea and they go over to Germany

and they Supply natural gas to Germany and they go it's it's you know I don't know 500 miles long it's a huge two it's

it's called nordstream 1 and nordstream two and soon after Putin says we're not

going to accept US Dollars anymore for our oil and gas someone with a Deepwater

submarine went down and blew up those pipelines they blew up nordstream one

and they blew up nordstream two and no they didn't blow they didn't blow up in one place they blew them up here and

they went up like I don't know 200 miles up the coast and blew them up again dang I'm not saying who did it I'm

just saying you have a country that has the number one product of all time and

their job is to protect it and whatever has to happen to protect that US dollar

that number one product they're going to do it and so I'm sure I'm sure you know

when the this this is a joke I'm about to tell but I'm sure when the our US president talks to Saudi Prince he's

like yeah how's it going down there oil sales good yeah did you hear about the nordstream 1 nordstream 2 yeah crazy

right CRA they're just they all know what's going on but you know it's it's the US

dollar is just a a a mammoth on this planet it's just it's it's amazing and

Bitcoin is in its crosshairs and the yuan is in crosshairs anything that threatens now listen they don't want to

kill Bitcoin because if they kill Bitcoin then something will rise its

head like ethereum and take its place you don't want to kill you just want to control you don't want to kill your enemy

you just want to control them if you kill them another enemy comes up but if you control your enemies you know that

dog you know what that dog eats and you know how to feed it and so so that's the theory behind my book and I use that

theory to say in my business dealings and I've run funds for all these years

and I took me and my partner started in 2004 with my first fund and by the time I retired in 21 we were managing $28

billion assets management from 0 to 28 billion and we added a bunch of Partners

over the time and I I brought in we brought in brilliant business partners that took us farther than me and my

original partner could ever think about going but the point is I took I I

studied the FED all these years how did they get the number one product of all time and I tried to emulate how they did

it with how I'm going to run my business and make my business huge and I believe

I basically simulated their Strate strategies their uh bumping their

pushing their whatever and I was able to incorporate some of those into because

look if they're the best example of the number one product of all time then you should learn from them and how they work

as a team the IRS the SEC the the presidency the uh the Federal Reserve

how do they work as a team to F do one goal and what we did in our company is

we became a team our all of our partners I ended up with 32 Partners brilliant guys brilliant guys we all ended up as a

team working as a team and we all brought in different skill sets and worked on one single thing and we use

strategies to our banks to our competitors to our customers we were the

same kind of strategies that the US government has used to promote their number one product and that's the

empasis of my book and the second half of the book is shows you how I built funds and how I implemented learning

from the FED how they were so successful of having number one product in the world of mankind and and use those

strategies to um promote uh my business dude incredible man like the

more I hear you talk the more I'm excited to read the book now it's on audible.com and I

record it with my voice so if you want to listen to me for six and a half hours uh on regular speed then uh you can

download it from audible.com too so yeah dude I would I'm actually going to download it right now as soon as we get off of this thing I'm really excited to

hear thank you thank you thank you no that that's beautiful man and I think learning from people that that have these strategies because just even as

you're talking I'm starting to apply things right to my business already like you said like you don't want to kill your enemies right you want to you want

to kind of protect them like take care of them like hey so I know where you are yeah right there's there's a really good

story um um about Microsoft and Apple back in the day with Steve Jobs and Bill

Gates um Microsoft was being sued by the US government for uh uh Monopoly and

they were in court back there and Apple's about to go out of business and I don't I I believe that this is true

but I don't I've never researched all the facts but I believe Apple's about to go out of business and they need like

$20 million and Steve Jobs calls um uh Bill Gates and says you're

gonna loan me $20 million he goes why would I loan you $20 million because if I go out of business you have no

competition ition and the US government's going to win their Anti-Trust and they're going to break you apart so Bill Gates invested $20

million into Apple to keep him alive so that he wouldn't be Su and eventually eventually that

happened that Bill Gates was an owner or or Microsoft was an owner of Apple I mean that's the whole point that's the

whole point that is beautiful I I like I like the aspect of keep keeping competition

healthy because I think it it drives the customer never knows

yeah yeah exactly exactly the customer never knows I think that's huge I did not know I will share one thing with you

people asked me I'm look at my notes here just make sure I've got the dates right and stuff but people ask me all

the time I I started I've started 14 businesses in my lifetime uh three I've made a lot of

money on and three three I lost money on and the ones in the middle they all made you know they all did pretty good that

you know they weren't great I couldn't it was hard to scale them and until I found the fund model I couldn't scale

the other 13 businesses they got pretty good pretty good size but scaling but a fund a limited partnership general

partnership structure it just scaled like you couldn't believe it was just it was natural scaling but I can go back

and people ask me where did I get my entrepreneurial spirit and I I remember

when I was a late teenager you know when you're a teenager you're almost graduate high school and you're worried about what am I going to do what's my career

path how am I going to make money all these things as a as a guy in the United States of America trying to figure out

and I I seriously I remember looking to the mirror I was in the bathroom I think or maybe in my hallway I looked into the

mirror and I looked in myself and I thought about it a ton and I said to myself John you're not afraid of being poor and

you're not afraid of being old you're just afraid of being old and poor at the

same time oh yeah and I've repeated that self to I

repeated that to myself for decades and decades and decades and that kept me driving to make sure that I could run my

own business and one day not be old and poor at the same time and that was the motto that I kind of lived by all those

years while I was you know had some businesses that failed you know and and like

look you're gonna you're gonna you know I've told my kids I said there if you do this three things is this an academic

it's one plus two equal three it's academic you stay healthy you number

number one stay healthy number two wake up every day and try and number three you will eventually succeed in United

States of America and I have friends that are unhealthy and and are vastly successful

I'm not saying you can't do it I'm saying my way is academic 1 plus 2 equals three and the reason I say this

is because I believe the United States is the most fertile soil for

entrepreneurs I believe there is no better country on the planet for entrepreneurs than United States I

believe the day you were born United States is the day you won the lottery I believe the day you move from a different country you move from Nigeria

or Thailand you move here that's the day you won the lottery because if you're an entrepreneur I don't I don't know if for

the best in reading the best in I don't know about all this stuff but for entrepreneurs I believe it's the best place and my formula Works stay healthy

number one get up every day try number two and eventually it might take 14 businesses but eventually you will

succeed you might go to bed crying on your big pillow well I can't meet payroll this

Friday I can't meet payroll this Friday and you but it doesn't matter if you wake up the next day and try you will

eventually succeed and that's America and you you have so many tools here to

one business doesn't work well you got to go to the next business but it's it's just a great country with financing the

attit ude the people the laws they just make it a lot easier for for entrepreneurs to succeed and I just so

happy that I was born into this country but I have friend you know I've got people that move here from Nigeria or

Thailand and in three years they own like two laundry mats in a restaurant

three four years they don't even speak the language beautiful how how does that happen how does that happen because the

country is a fertile place for entrepreneurs dude I'm already like a super optimis person I just always see

the the bright side of things but this conversation has made me feel like 20% more optimistic right because you

you see all this Doom and Gloom all over the the media social media everywhere saying that the the Federal Reserve is the big bad guy that's gonna that's

trying to shut shut the United States down but it sounds like yeah based on everything that we' we've talked about

in this conversation like man we we we do have that protective shield around us yeah yeah so in

1999 I watched their report it's a new newscast and they were these people were

on their newscaster was vilifying hedge fund managers saying they make a lot of

money and they pay really low in taxes and I watched this thing of this

reporter vilifying making this person evil and I thought wait wait wait wait

wait wait I want to be that person I want to figure out how to make a lot of

money and pay less tax I want to figure that out this is 1999 right 1999 and so

for the next five years it took me five years to launch my first fund at 40 years old when I was 40 in in in 2004

all right so five years I got my Series 7 license stock Brokers license I became

the manager of a of a broker dealer I then got uh I wanted to learn how mortgages work so I started selling

mortgages got my mortgage license I then got my series 65 investment advisor license I read ppms LPA but those are

private placement memorandums of bunch of funds limited partnership agreements lpas of funds subscription documents

over and over and over and I taught myself how to launch a fund and my first fund we launched with one other one of

other in 2004 we were doing short-term loans on real estate and then we added a

few more partners and launched a second in 2007 and there was called Bridge Loan Capital fund one in 2004 and Bridge Loan

Capital fund two in 2007 and then 2008 hit us with the

recession and I'm so grateful that it came because if the recession would have never come I would have still been

lending doing loans I've been making good money but what it forced me is to stop lending on real estate and in 2008

late 2008 we launched our third fund we started buying real estate from Banks

and that's and that team and that we added some more partners that team went from here to $28 billion assent

management by by 2021 so and and I had competitors in

2007 just drop out of the business they were bigger than me they were bigger than me and my real original Partners

they they lent more money they did and they dropped out of the business went did something else and we just buckled down and twisted it and said wake up

every day stay healthy wake up every day and try we went from a fund a third fund of lending on real estate to going to

Banks and buying REO from Real Estate uh from Banks and that just took us to new

heights that we could have never imagined managing I remember when we hit our first billion I was like what what

Anthony I I know I know knows Anthony let me ask you a question this is a good one if I gave you a dollar second one

two three four and I never slept never went to the bathroom how long would it

take me to give you1 billion dollar well in other words how long is a billion seconds here's a multiple choice

31 hours 31 days 31 months or 31

years a billion seconds 31 days billion seconds just start counting one two just start

counting to a billion yeah it's 31.7 years whoa 31.7 years is1 billion

doll so when we talk about I get on stage when I talk about billions I I I give this example because people misuse

the word billion all the time they'll go John I was just outside I saw this enormous flock of birds there must have

been a billion of them and I go no there wasn't you know why I know I've done the math we have no concept A Billion Birds

is 31 31.7 years of second it's 31 years almost 32 years of seconds they Mis you

so we talk about the Federal Reserve in billions and we talk about Bitcoin in billions and we talk about managing 28

billion do asset or management it's a huge number so we hit our first billion

I was just I I sat down and did the math and I couldn't believe it 31 32 almost

32 years of seconds is a billion dollars and so you know the Bitcoin the dollars

the gold everything on this planet that that the US has at at its fingertips uh

to you know maneuver and protect its number one product it it's just amazing what they what the what the government

has done to do that man incredible story man so I got a bunch of I mean I could like I said I could have this

conversation forever so we're just starting to get into the funds we're almost going to launch our fund why was the fund the Catalyst for growth you

said that when you once you got into that portion of it things just started to grow exponentially what and why can can we kind of share that with the

viewers and and of course us okay first first thing I learned in 1999 and I was

like Flower gasted by this okay you know who Steve Jobs is of apple and do you

know who Steve Schwartzman is okay black black black stone black Black Rock

Blackstone Blackstone so Steve schwarzman and Steve Jobs Steve Jobs

took his company public using an Inc an incorporation and every year in an ink

what happens is the shareholders the people who are the shareholders who have the money they get together and they have a shareholder vote and they vote

who runs the company and eventually Steve Jobs got voted out of his own company that he

founded in a general partnership limited partnership structure the limited

partnership is an entity over here and investors put all their money into limited partnership the general partner

is a separate entity which you guys are going to do as you're starting your own fund and you're the general partner the

limited partners never get together and vote who the general partner is unless you commit fraud if you and I'm not

gonna commit fraud so I thought wait wait if I'm the general partner and this thing goes really really really really

really big they can never vote me out the one billionaire can ever say you know what John we appreciate what you've

done we're going to vote you out but the billionaire wants to have his son run the company that's never going to happen

and that's what Steve schwarzman did Steve schwarzman took his company with the same structure General partner

limited partner structure took them public and they're now public and they unless he commits fraud I don't think

they can ever vote him out so that's the number one not should say number one that's the first thing I learned about

general partnership limited partnership funds is that if it ever gets really really big you can't vote me out because

I started the thing and you just can't vote me out because you're greedy so that that's the first thing in funds the

second thing in funds why can they scale all right so let's just say you're

running your F you have your your there's two entities General partner limited partnership there's two entities

the general partnership is an LLC the limited partnership is an LP a limited

partnership and that's where all the the investors called limited partners put their money into okay and that limited

partnership let's say it's a publisher it sells books okay you've raised a bunch of money and people put money in

and now you're publishing books and that's what that that does and the general partner is here and once they

get up and running and you have employees doing all that right the general partner can start a second fund

and it starts a second fund that they don't uh publish books there's a paper they're they're now a paper company and

they have trees and this forest and they make all this paper and you raise money in this second fund up here let's say

second fund up here and it's called the paper fund and people invest in the paper fund

to these guys know how to make money making paper but the journal partner is still the same or it could be two joural

partners owned by you the difference is you can have multiple multiple multiple multiple multiple funds and basically

the same kind of general partnership in the middle and it just there it's compartmentalized and therefore it can

scale so in real estate you could have a fund that does multif family and get

that up and running with people who know how to run multif family then you can have another fund that does single

family homes and you can have partners that only know how to do single family homes they don't know how to do multif

family you can have another fund that just does raw land and they these guys

know how to do raw land and so we figured out or I we figured out my my me and my partners that there are people

think about this I know how to start companies I started and but there are other people

that went to college and they never started a company their life and they went to work for a big bank and this guy

this lady has been underwriting bank loans for 17 story apartment complex in

New York for 152 years so this lady this guy has a lot of gray hair they've been through a lot they know and they you

know they you know they they drive to work every day to think about they think about one day I'm G to start my own

investment fund but they don't know how to start it they don't know how to get going because they've been in corporate

for so long and schooling for so so long I don't how to start companies now if I get that lady or guy to come work in on

my fund that just does lending or apartment buying Apartments they're

going to be an owner and this is my pitch to it listen I don't want you to be the person

when you're 70 years old retired and you always thought I should have could have I should have tried one time to be an

entrepreneur this is that moment you're going to leave your job you're going to come work for the fund you're going to

be an owner of the fund first day or we're going to give you a vesting skule you're going to make less money you're

going to make less money I promise you you're not going to make as much money on salary-wise but if it works you're gonna make way more money than you ever

would at your job at the bank right I know these PR people are driving to work every

day I just had to find them I know there's a guy that went to an Ivy League school he works in Wall

Street been there 15 years he's got gr hair he's a great Capital Razer I'm a good Capital Razer I'm not a great

Capital Razer I'm not the I one of the best Capital risers right and I found

you know there's these same people they drive to work every day one day I'm going to start my own hedge fund and

those people actually when we brought them in and they became Partners they can run the company grow company faster

than I could ever grow it they learned so much stuff in school and college right but starting it getting it off and getting it to a certain point takes an

entrepreneur and a fund Can Can Has It's enticing to people who are in Corporate

America that have always dreamed one time in their life about being a fund manager and you say to them listen even

if it fails at least when you're 70 and you're retired you can say I went for it I took the shot but you don't want to be

the person when you're 70 that I sitting there with your grandkids going dang it I never took the shot and this is the

sales pitch that you know you give to people when you find them you find the person with the gray hair they're

Experts of what they do and you have a fund that only single family homes okay and that person has been working in

family homes for decades they just never worked for themselves and you get you get a four or five of these people and

you bring them in and they're the investment Committee of that fund wow and that's how it scales and

then you do a second third fun that's how it scales and and and and like I said my first 13

businesses I I got them to a good size but I couldn't get them to scale and a fund model it just kept scaling that's

that's what happened that's beautiful okay so you're not trying to get into something that you don't know too much about you as the entrepreneur sets the

fund up you set the framework and then you grab other people that are already in that field they're experts in their field and then you lay the groundwork

for them and then they build the they build the menion yeah there's three basic circles

okay think about a circle a circle one Circle two circles three circles this circle are people who know how to raise

Capital this circle are people in the middle that know how to file the SEC to

do accounting they know how to talk to investors they know how to issue really good quarterly reports third circle is

your investment professional so if you're going to do a single family home

fund you would need someone in this circle that doesn't like accounting doesn't like raising money they just

love finding purchasing and making uh single family rentals or single family

homes you know flipping whatever they're an expert investor here and then you

find people over here that are experts in accounting and taxes and all this stuff SEC compliance and then you find

someone who just loves raising Capital the person who loves raising capital is

not really ever an expert in actually finding large apartment buildings to buy

that's not the same personality now in the beginning when I started I did all three I raised Capital then I drove and

I to sit another city and I underwrote a you know a 40 acre uh building uh pads

and we and I came back and I did Cly reports and I did the tax returns and I

did it all me me and the first partner we did it all you have to do it when you first W but as you grow you're able to

get better and better experts and as you grow and you get better and better experts when you put a together a team

of a bunch of experts that are really great in their field the money is easier

to raise even though capital raing is always hard it's easier to raise when you have a team that's really driving

really working together and they're all got great resumés and they all know what they're doing in their particular

circles and that's kind of how you get you get to certain you know economy of

scale and it just snowballs from there and it just gets bigger and bigger and it scales and that is beautiful so I

feel like that's Daniel and myself right now we are the professional purchasers right and that's what we're good at I think we're getting better um you know

getting on with with fun lunch that you know that there's the infrastructure and then we do have one person right now

that's raising a significant amount of capital for us so I feel like we got the three pillars right now

yeah yeah yeah so just think about keep thinking about those three circles and every day every Monday when you have

your you and your partner meetings you're always you know concentrating on filling out those three circles if you

were a baseball team and you needed people who could hit people who can catch and people who can pitch right

every Monday morning you're trying to get the best pitchers to join your team the best hitters to join your team the best you know so you're just you know

every morning you're trying to build you're trying to build your team as best possible and you realize maybe you're a

really good pitcher but you're not a great pitcher and to win championships you need a great pitcher so you're

you're still pitching until you can find and attract a really great pitcher and so when that really great pitcher comes

into your baseball team then you move to center field and then when you find a guy in center field that joins your team

that could run like a 4340 then you go to second base that's

that's kind of the Mantra of trying to build a team that is experts in all they

do man powerful dude this is very powerful like I said this has been a very very great conversation for me

personally like I said I feel like a lot of this stuff is applicable and it sounds like we're we're on the right path man so excellent excellent

conversation I was going to ask why did the exponential growth come from being the lender right and I can understand those are smaller margins but now going

after reos why was that so significant are you are you guys just buying stuff for like 10 20 cents on the dollar is it is it high volume or what was the main

catalyst there yeah we eventually went back into lending after the markets came back but we had to change because in

2007 if you lent somebody some money on a property they couldn't get a loan from

the bank because the bank was doing any loans so there was no Wai for let's say you did a four-month loan a short-term

loan there's no way for me to get out I couldn't get I had to foreclose because

the borrower would always say well I'm going to then build this property up and then get a loan from the bank and then

pay you out and I'd say great and but if the banks none of the banks are giving

loans then I couldn't do a short-term loan and get an exit I was going to be a

short-term loan and I was going to become an owner anyway because I had to foreclose so rather than go through the whole foreclosure process and ha why

don't you just start buying the property at discount from Banks who are foreclosing after the bank forecloses so

our third fund was you know purchasing property rather than lending and in reality listen like I told you I think I

before I'm so glad the recession happened this is this is a true story right here we

had had a guy friend of mine calls me John John how you doing this is 200 78

is Right eight eight really end of end of eight and he says how you doing I go

I'm doing good what what's going on he goes well I'm calling because I know real estate's really bad right now and I

know you're into real estate and I want wondered how you and your family are doing and I just felt sorry for you I

said you are you are have you lost your mind the best time in 80 years to be in

real estate is 2008 9 10 and 11 there is no better time in 80 have you are you

not thinking straight and so he was like on the phone like my God go I I called to say I'm sorry for you and eventually

that guy and a few other guys that called me I made them my investors I

kept talking to them about you guys got to put more money in now because you can buy stuff so cheap in 201910 and those

guys that called me to feel sorry for me became some of my investors so my point

is if you wake if you stay healthy wake up every day and try you know eventually you have to take look at all um adverse

something that's going wrong There's an opportunity there somewhere because if you're hurting everyone else is hurting

too and therefore but the hurting usually can't last forever it's got to change and if you can see it so we Chang

from lending to purchasing and that's you know that's the story so beautiful man I guess all the moons

in line just right at the right all yeah I'm still here I don't knowel and so listen since okay I tell

you something since 1971 since 1971 when we went off the gold

standard give it a few years but then every 10 years the world kind of changes

so 1978 we had the the the the financial crash in 1978 followed 1978 and

19779 no I'm sorry wrong wrong wrong I got the wrong dates 1971 we go off the

gold standard 1987 we have a crash in the stock market

one year later the Soviet Union Falls and guess what me and my partner did we

had three two partners the the kids in eastern block

Europe they would watch they couldn't buy Goods on the Western on the west from the West they couldn't get them it

was it was a you know Cold War but they could watch Hollywood shows and they could watch like Jay Leno and the

tonight's show and they' watch these Hollywood stars wear faded Levi 501

jeans made by Mr Levi Strauss in San Francisco and that was the fashion item

they wanted but so when the wall fell down in in ' 89 everyone wanted made in USA products

so we in the Western United States had been wearing I I grew up with them we wore them as work jeans 501s but we

found out that if you went to the Eastern block you could sell these for1 $ a pair the Levi Strauss company

couldn't move into the Eastern block countries fast enough and so we started

purchasing Levis used Levis from all over the country in the Western United States the 13 Western States and

eventually my two business partners moved to Southern Germany and I would get supply over here buying from thrift

stores the public everybody and we would ship I would sew them redy them fix them

up put bandanas behind the big holes in the knees whatever shipped them over to Germany and my two partners would sell

them all through you know Prague and places like that and we were Soup To Nuts we were buying from the public over

here and we were selling to the public over there we did that for nine years

whoa that's all I did for nine years I tried to find more Levi 501 jeans and

ship them sew them wash them get them out to my partners in Europe and they

sold them it was a nine-year run that was 1989 now 10 years later 1999 the dot

bubble you know crashed right and well do com bubble it went up and up and up

and and then it and the internet was coming and then in 2000 it crashed I

missed that one I nailed the one in 89 uh for exports I nailed it we did such a

great job it was such a huge business I missed the 2000 bubble but in 20 9 me and my

partners nailed it the Great Recession and then in 201920 we had the re we had

the uh you know the covid and we nailed it again with opportunity Zone funds and

we raised about5 billion do you know in Opportunity Zone funds because it was it was financially put there so about every

10 years the world goes boom and those are the big huge places where a lot of

people make a lot of money when it goes boom when it all goes you know smooth you can make some money but when it goes

boom if you think about it right if you really think it through and you have a fund that can raise money from investers

uh you can take you can take advantage of it yeah so incredible man so uh real quick I know we're getting close to that

hour right over hour can you do a prediction like what do you think the next big boom's gonna be next big boom

well I know there's a big change coming it's called it's called the US digital dollar and I don't know when it's going

to come around I just know it's going to come they're going to keep pushing it

and pushing and pushing it and it might be May 2033 the 100y year anniversary of the

gold confiscation and it may be made you know that that 100y year anniversary in

20133 and they might say for the good of the country we can no longer allow

Bitcoin or all coins or gold or silver we all have to only use the US digital

dollar for the the goodness of the country to keep America on top and and that might be

another you know they will like I said they will they will transition they will

uh uh transition and evolve the US dollar in any way they possibly can to

keep it the number one on top of the world even to the point where confiscating gold or confiscating you know anything

is uh is is in their in their ability to

do wow yeah I can definitely see that man hey hey John wrapping up now uh we

wanted to we always ask what is one quote that you resonate with that's either yours or someone else's okay one

thing I it says oops connection lost reconnecting okay I can still hear you fine do you got that do you have that on

your no it's just you okay we're good okay so you're asking me a book book books I like uh quote a quote that's

your one of my favorite books quote Yeah yeah one of my favorite

books oh quotes you say quotes yeah I thought said books sorry and I'd like to

know the book and I'd like to know the book too you're holding it already Okay okay I'll tell you the book

one of the books I love and I just love the way the guy put went after it it's called Uh Guns Germs and Steel by Jared

diamond and even though I don't agree with everything he says in this book it's it's quite a quite a um trying to

figure out why everything in the world happens okay why did Columbus discover

America and the Chinese didn't do it why can we not why did we domesticate horses and didn't domesticate zebras I mean he

just he goes off there's one in the back of the chapter one of the chapters at the very end of the book he

says you know when on on your typewriter or or your computer where the where all the keys are where the where the letter

K is and where the letter J is he says listen when they first invented the typewriter in the early

1900s they had a different configuration they kept testing different configurations and they found one that

was really fast people could just really really type really fast on right and what happened though the typewriters

back then used to have a ribbon and the ribbon kept getting jammed so they switched the

configuration to a slower configuration that's slower to type on okay then about

four to five years later they fixed the ribbon jamming and they went back and

tried to change the configuration where the a where the B where the C is to the faster

one and everyone had already learned the slower one and you and me today use this

configuration because of that is that a wild story that's cool

man we are purposely slowing down we're purposely slower typing today because in

19 I don't know 06 or something they couldn't fix the ribbon and they fixed

it 5 years later that's why we had the configuration we do on our computers and that is one of in the one of the last

chapters of this book Guns Germs and Steel so that's one of the books I really really enjoy that's so cool man I bet there's a

lot of cool stories like that of things that we do today that just have a funny explanation like that yeah yeah I I'll

tell you one quote it's in my book it's an old African proverb and it says this

and this is perfect because I end the book with this in my in the last couple pages of my book because I'm talking

about funds and how great funds are when you get a group people together and I'm

I can't think I can quote it perfectly but it basically says this if you want to go

fast go alone if you want to go far go with a

group that's my quote I love that quote man I I have a I have a multile

marketing background so I always think in terms of teams and helping other people and growing together so that that

that quote resonates with me big time yeah yeah so where I think we're over

our time here dude what a blessing I hope we can have part two of this conversation because I feel like I have a lot more questions that I would ask

yeah but yeah we don't want to take up too too much of your time and super appreciate you getting on here with us it means a lot and I feel like I've

learned a ton today man stuff that's very very applicable to you I hope the audience did too thank you where can people find your

book all right John we'll see you next time book the book is on audible.com or

amazon.com John S Pennington Jr yeah dollars golden Bitcoin by John ESP

Pennington Jr Amazon or audible.com and on Audible again audible it's my voice

the entire six and half hours at regular speed so if you want to listen to my voice for six and a half hours you can

go to audible so thank you but thanks guys thanks guys for hosting me really appreciate it was been a great discussion really really loved it dude

this was awesome I'm gonna download the book right now and I'm gonna start listening to it right now I seriously am thank you thank you very much awesome

John thanks for hanging out man we'll see you soon thank you okay see you bye thanks for tuning in go like share subscribe we'll see you in the next

episode guys thank [Music]

you