Aug 10, 2023

The Consumer Price Index (CPI) rose 0.2% in July, in line with economists' forecasts.

Video transcript

New us. Inflation data is out. The consumer price index rose 0.2% in July on a seasonally adjusted basis. Joining us now to discuss how the crypto markets are reacting is path trading partners, co-founder and Chief Market strategist Bob Aino. Welcome back to the show, Bob. Good morning. Good to see you, Jesse just made me smile. He's like in such a good mood all the time. I love that. I know he just brings the energy first thing in the morning and Bob every time I get to say your last name, I smile, it just rolls off the tongue. A Chino cappuccino. So as long as you like, I love cappuccinos. All right, this is not a show about coffee. Let's talk about the markets. Uh Bitcoin is not moving, Bob, it's not moving. We're hovering around 29,500. Uh What's your reaction to what's going on in the markets right now? Well, I mean, I'm pretty positive and unfortunately, uh you know, one of the things I think that sparked this recent rally in Bitcoin was Larry think of black rock kind of blessing Bitcoin as something that's actually going to be here long enough to create an ETF. Um I, I think it's interesting that after that we just kind of solve these levels because I've, I've been both positive and negative short to medium term and honestly, I couldn't be more positive the asset right now just looking at what's happening, looking at what's happening in the broader economy. I've said this on your show before, Jen, that I think the two things for me are gold and Bitcoin right now. Gold. Simply because, you know, as an old finance guy myself, it's definitely easier to convert to fiat when I need to. Uh Bitcoin has little longer term play for me. It's, it was a long time before I decided that Bitcoin wasn't my space and once I made that decision, um it's stuck with me and it's just kind of the, the longer term investment, I don't see any way around it. The more people from the old economy that we have on our podcast that we record every week, the more I believe Bitcoin is here to stay. So, um, you know, it's funny because, you know, you're bullish and a lot of people are bullish, but it, there is kind of a wintry gust still, you know, it doesn't, it doesn't totally feel like crypto is, is, is back completely right. And, and I guess my question would be like, what, aside from, you know, one of these ETF S being approved would sort of be the, the thing that sort of pushes the needle in your opinion. Well, I think when Jesse was talking about, you know, getting more people to just give it a try that, that resonated with me. It's actually something I talked about in another interview, uh, about 10 days ago where you still have people that just say, I don't understand it and the effort to understand it just isn't there and getting people to either a realize that at least to get involved, you don't need to understand Blockchain and, and NFTS in the entire world of, of D I, you just have to understand that it's decentralized and that essentially it's the answer to the questions that most of us in the old finance world are asking, you know, again, as long as it's not regulated out of existence, which that's the part of the Black Rock thing. I mean, I, I'm not a fan of Black Rock as a company at all, but the fact that they want to make an ETF, you can look at them as sort of the evil empire and say they'll make money off of anything they can. But they're also not going to invest in something that isn't going to be here for the long term for them to make money, which is what they're actually doing right now. So the second part of that, uh, Emily is that you, you have to actually bring people across and get this world, the world that you guys exist on a daily basis to simplify some of these things. You know, listening to Jesse talk, I realized that there's about 80% of the terms that I don't even know what they are. And I'm an older owner and a holder of Bitcoin myself. So it's a more complex world than people like me know, but it's also a simpler world than the people that I can't seem to drag in. Keep kicking and screaming to learn the basics of it is all right, Bob. And lastly, we mentioned that CP I index in our intro here. What's your reaction to the latest us inflation data? And how might that relate to how we see the crypto markets move? So I'm sort of an inflation evangelist and what I mean by that is trying to get people to understand why when an economy is actually strong in the data, why they still feel so bad about the data? And one of the things I looked at about a week ago was the employment cost index, right? Which is basically what we all get paid all in, right? What it costs businesses to pay us. And that's up since about the first quarter of 2020 is up, about 14% inflation is up about 18%. So it's that gap that makes people feel like the economy is still bad. You know, we were talking about coffee earlier. I had a really knowledgeable friend of mine call me and say, can you show me a coffee chart because I don't understand why my Starbucks is still a dollar more than it was later or it was last year because all I keep hearing about is inflation coming down. Inflation is the rate of growth of prices. And we still had a positive number this month. Even though it was lower than it was in previous months, you go back to last August month, over month, it was up 0.3 this month, it was up 0.4. So prices are still going up, but they're going up at a much, much slower rate. And that means that the catch up is coming. And that's why you still, you see strikes, right? You see people complaining about the wages they're getting. That's because they haven't caught up to inflation yet. So as long as that remains in check and we still have this push for higher wages, people will actually get to the point on main street where they feel better about the economy overall. All right, Bob, we are gonna have to leave it there. Thanks so much for joining the show. Always a pleasure having you on. Good to see you guys. That was path trading partners, co-founder and Chief Market strategist Bob Aino.

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