Trump's Absolute Hell | Meet Kevin Report 3 [Jan 8]

Donald Trump is lashing out against

California thanks to the California

wildfires we have a lot to talk about

regarding the California wildfires but

first we're going to talk about how the

Chinese macroeconomy could end up

affecting the United States via a

deflationary spiral talk briefly about a

bubble warning but also some bullish

talk to offset this we'll talk about the

Federal Reserve minutes as well as

Quantum computing's crash today we'll

talk about battle going on between

Jensen and d-wave will go deep into why

Donald Trump thinks we should take over

Greenland which yesterday came with

confusion but today comes with a lot of

clarity we'll also talk crypto on

today's meet Kevin report news that

makes you money well let's get started

first on macro there is talk bullish

talk that by TS Lombard that we don't

need rate Cuts in 2025 because quite

frankly everything is going to Boom in

fact China is going to return demand to

the United States that we're already

seeing bullish ordering from Chinese

firms and sales by Chinese firms to

foreign countries and that's going to

end up resulting in even more of a boom

in the United States for 2025 now sure

under Trump you should expect higher

volatility but strong corporate

fundamentals will be supported by

potential cuts to the corporate tax rate

and we're going to be sticking with

higher for longer which could cause the

nation's home builders to underperform

this is a thesis put out just today by

an analytical company called TS Lombard

now this is offset by at the same time

Bloomberg citing that China's economy is

so pessimistic that the bond market is

essentially assuming that China's

economy is going to a deflationary 1990s

stop

recession depression or deflationary

spiral one of the ways that you could

look at this bond market in real time is

simply Google the Chinese 10year

government bond yield and if you go out

to the little fiveyear chart you could

see this collapse in the five in in the

10-year Government Bond No matter how

much you zoom out we've never actually

seen Chinese debt this low yielding this

is a potential sign that investors in

China are fleeing out of risk assets and

real estate and factories and

consumption assuming that we're going to

have deflation and they're trying to get

any yield they can get their hands on so

that way their money grows see the

downside of deflation is usually when

you have deflation everybody hoardes the

money they have you end up creating a

depression because why would you buy

that iPhone today if you could just wait

a year and it's 20% cheaper iPhone might

not be the best example because they

come out with a new one every single

year anyway but the thesis applies to

Machinery cars corporate expenses why

buy today if it's going to be cheaper

tomorrow that would lead Chinese GDP to

rapidly UND shoot expectations that they

can get 5% growth and people believe

that a deflationary spiral in China is a

caused by Massive overbuilding of

Manufacturers that there's just way too

much excess Supply now remember in Co we

had too little Supply now they're like

too too much Supply uh but some people

say while it's good that it could export

deflation to us it's bad because if

China contributes to the global economy

less then you could see European markets

and other countries slow down China also

buys stuff from our companies we're

going to think for example uh Quantum uh

or sorry not we're going to talk quantum

computers in just a moment think qual

somewhere around 45 to 65% of their

revenues go to China around 20% of Tesla

revenues come from China uh Apple about

18 to 20% of their revenues from China

so if China slows down there's a fear

that a lot of large corporations

including our mag sevs could get hit

with limited sales because people are

spending less money in China but as you

can see there's a lot of this sort of

Wait and See For What what's going to

happen with China and Trump tariffs look

for example at this in December China's

growth has likely continued stabilizing

with some marginal data Improvement in

select areas thanks to a new round of

policy easing since September this has

supported a rebound of GDP growth in Q4

however markets remain cautious on

China's economic fundamentals waiting

for more updates on China's easing

measures as well as Trump tariffs in

December major activity growth data has

likely improved however deflationary

pressures could linger with a decline in

CPI inflation and deep PPI producer

think manufacturing deflation remember

deflation again generally is associated

with a slowing economy this is why you

try to calibrate inflation around two

percentage points and again people buy

bonds so that way they can at least

capture some yield especially since the

Chinese stock market so far this year

isn't off to the best start it's

basically been read every single day you

can also see that even China's 30-year

bonds have fallen and tumbled now with a

lower yield than what Japan offers you

could hear see it's a downward spiral

that will keep getting worse if it's not

corrected there's a psychological

element to Japan's lessons where the

longer this persists the weaker business

and consumer confidence gets in other

words the longer China waits to actually

properly prop up the Chinese economy

with the appropriate amount of stimulus

the worse it gets the more businesses

are damaged and the more businesses just

say I've had enough I'm going to wait to

spend money and we're going to save that

saving mentality is quite the opposite

of what you see in the United States

where our economy is still in spend

spend spend mode which is great but may

not last and that's where you have some

folks who say we're actually in a bubble

environment now this isn't everyone but

there was a bearish institutional letter

out today uh by this uh author called

Owen nomic I never actually heard of

this person before this letter uh and

like I said TS Lombard was really

bullish on China you also had worth

noting credit agricol agrial pretty

bullish they uh don't expect a Federal

Reserve cut in January they think that

uh jobs data absent a big surprise to

the downside will just end up confirming

the Federal Reserve is not going to cut

they're forecasting 145,000 jobs for

this Friday jobs report at credit

agricult which is slightly less than

what Market participants are forecasting

closer to 160k but still a lot better

than something sub 100 that would be

more recession fear

inducing ultimately credit agrial says

this indicates a labor market that is

clearly cooled but is not fallen off a

cliff now we've talked about this in

Prior videos that you're really not

going to see the labor market roll over

until you have layoffs and as long as

corporate profits keep going like TS

Lombard says they might yeah we could

potentially keep seeing higher yields

and hopefully highering rebounds because

frankly nobody wants to go through a

recession anyway onomics writes that we

are in the middle of a quote raging

Bitcoin bubble the stock market or quote

at least The Lunatic Fringe of meme

stocks and crypto related firms is not

far behind the individual provides Seven

Pillars of uh identifying when you're in

a bubble one of them is that bubbles

involve irrational optimists basically

in his words idiots who create

market-wide bubbles or mispricings that

could actually potentially last four

years he then says that this there's

this utopian idea that everybody should

be able to get rich and that also

happened in 1929 when everybody wanted

exposure to stocks and then guess what

everybody got poor over the next years

as the Great Depression took hold he

says that nobody knows with certainty if

Bitcoin is going to keep going up and

anybody saying otherwise is just part of

the lunatic F frenzy a fanatic won't

change his mind either he's sort of

really anti Bitcoin Maxi this person

really seems like like they're bears and

then they are just people that just show

up like once in a while and they're just

mega mega bears but I guess we don't

have to be mean to him we just quickly

get through what he's saying here uh he

argues that bitcoiners who are really

Pro Bitcoin just work to confuse people

and then claim you don't understand

Bitcoin and the more they can confuse

you the better Bitcoin is and after all

this time is different and the numbers

keep going

up okay so obviously a bakeley bear

there uh so you can see there are a lot

of mixed opinions on what's going on in

the market obviously this job sta is

going to be very important on Friday

it's also worth noting that the stock

market is going to be closed tomorrow

which I did discuss this morning in my

course member live stream as we're

reviewing some of the initial data that

was coming out this morning uh doing our

fundamental analysis as we usually do

and uh I mentioned this in the alpha

report as well this morning the stock

market is going to be closed

uh and so really any of the trading that

happened today which I thought the

market might end up being somewhat flat

in anticipation of this is based on what

people think the jobs Market is going to

deliver to us on Friday and so far

people are actually kind of bullish I

mean yeah last month we got 227,000 that

might get revised down this month we're

expecting exactly 165,000 a 4.2

unemployment rate average hourly

earnings at. 3% slightly down from the

04 last month and we expect average

weekly hours by all employees to be at

34.3 same as before with a stable labor

force participation rate we'll see see

what ends up happening Friday but again

we won't get to trade on it on Thursday

we'll still provide a meet Kevin report

though as there is more news that

happens than just market news but first

before we get to the non-market news we

really got to get into talking about

quantum computers because Quantum

Computing stocks absolutely got

destroyed today

look at this uh d-wave Computing down

36% today Quantum Computing down

43% another one that I mentioned in

another meet Kevin report was RR uh Rin

Tech robotics they got wrecked today

down 18% and I was bearish on them as

well but anyway why is this company down

36% for example I mean look at this this

stock went from under a dollar to a peak

of

$11 what was the Catalyst the catalyst

was Google's announcement of a Quantum

Computing chip and so this led to this

surge that everybody wanted to get into

Quantum Computing because Google said

the path has been paved for the useful

usage of large scale quantum

computers okay so that led to a

ridiculous rally in Quantum Computing

companies which have mostly very

terrible fundamentals which we'll talk

about in just a moment but what led to

the selloff the market all of a sudden

recognizing

fundamentals No in fact if the market

understood fundamentals they probably

wouldn't be investing in d-wave anyway

because it's a different kind of quantum

Computing technology than what Google

creates we'll talk about the difference

in just a moment I'll explain it to you

so it's kind of funny actually that on a

totally different type of quantum

technology an unrelated company would

rally but it's because it has Quantum in

the name and frankly that's good enough

for most people's due diligence when it

comes to momentum but that's why we do a

meet Kevin report to try to provide you

the intelligence to separate these

things anyway the reason these stocks

started falling is because yesterday

Jensen mentioned it could take

potentially as long as 15 years at the

earliest or on the early side for very

useful quantum computers and potentially

as long as 30 years though that would be

more on the late side now the CEO of

d-wave went on CNBC today to complain

basically said look we've already got

customers like MasterCard and and we're

doing a great job with our quantum

computers already in production today uh

and ultim Ely he talked about the

difference very briefly between gate

based Quantum Computing and analed

Quantum Computing now while he tried

brushing off that the quantum Computing

they use is just for optimization

purposes that's basically what it is let

me give you a quick understanding and a

quick primer on the two different types

of quantum Computing because I think

it's going to help you really understand

what to expect in the long-term future

what to pay attention to and okay that's

weird breaking person arrested after

attempting to enter US capital Visitor

Center with machete knives in

bag uh 2025 is something else anyway all

right so there are two types of quantum

Computing there's something known as a

gate-based quantum computer a gate based

quantum computer is kind of like your

classic computer except really really

fast and it's really good at

puzzles with very very low error rates

puzzles would be kind of like like what

you need to solve using what we like to

call the Shores algorithm kind of like a

Quantum algorithm uh to break into

cryptography like

256 or some of the uh cryptography we

use for various different uh security

system cyber security um uh Bitcoin

cryptography you name it these

algorithms can be broken potentially by

the these quantum-based computers using

gate-based puzzle-based approaches so

when you think gate based just think

puzzle they're trying to with a very

very low error rate puzzle together a

mathematical solution in a much faster

way than traditional computers can do

today today for a computer to break like

an sha uh you know 256 encryption it

could take hundreds of years maybe even

thousands of years to actually break

these encryptions this is why there's so

secure this is what cryptography is and

that's actually what crypto basically

was based on was the idea of encryption

right anyway so breaking this would take

a very long time but the thesis is that

a quantum computer could build the

puzzle out of breaking these security

algorithms rapidly potentially as

quickly as 20 seconds but I want you to

understand the difference between the

chip that Google came out with and the

the chip that would be required to

operate for 20 seconds to actually be

able to break let's say bitcoin's

algorithm all

right the chip that Google came out with

the willow chip has about 105 cubits

these are physical cubits not logical

cubits that's that's another thing you

need a certain amount amount of actual

physical cubits to reduce the errors and

increase the stability of the puzzle

formation of quantum Computing to

actually have a functional Quantum

Computing machine it doesn't have to

work that long and so the willow chip

operated for about 100 micro seconds

with 105 different well 105 cubics

cubits there we go that's 100 in case

you haven't heard of the phrase before

microsc that's .1 millisecond okay well

if you need 20

seconds you would need somewhere around

400 of these chips to actually be

functional quick math 20 seconds divided

by .1 millisecond is

200,000 so you need

200,000 times the compute efficiency of

the willow chip to break crypto or

cryptography if you could even pull it

off in 20 seconds in the future this is

why Jensen says we're 15 to 30 years

away now on a more practical basis

people think we need about 400 times the

cubits that Google put together in the

willow chip to even get close to having

a hope of breaking these sort of

cryptography so Willow's Quantum chip is

really just a research step in the right

direction that they had a stable quantum

computer for 0.1

milliseconds is that actually functional

no but from a research point of view it

is fantastic Okay cool so all of that is

gate based Quantum Computing so what are

existing Quantum Computing companies

using like d-wave d-wave uses a Quantum

Computing process known as

annealing the easiest way to think about

this is rather than starting with a

messy puzzle and trying to put it

together imagine just sort of like

pouring water down a mountain and then

whichever path the water goes the

fastest is the way the energy goes for

the quantum computer and I'm way

oversimplifying this okay and that's

your optimized

path so what is that useful for well

it's really useful for really specific

purposes like planning delivery routes

at UPS scheduling

workers and protein folding maybe even

some Finance these are not general

purpose quantum computers they're very

very specific purpose computers they're

not a threat to cryptography they're

like the opposite of gate based right

analing is is a totally different

technology so notice how Quantum

Computing via the willow chip got you

something that was you know 12

200,000th as good as what you really

need to do what the magic of quantum

computers can do and it was a research

milestone in Gate based computing and

the actual stocks that were just going

up are a ne-based Quantum Computing

optimization

companies this is why Nvidia says we're

15 to 30 years away fun note though

Nvidia is hiring Quantum

Engineers I did also though take a very

brief peek at the d-wave fundamentals I

don't want to say this is a deep dive at

all because it's not this is just super

surface level uh but yes the stock did

run up a lot after the willow chip uh

numbers but take a look at uh some of or

the willow chip announcement I should

say some of their financials they lost $

44.6 million in free cash flow in 24 $46

million in 2023 their revenue in the 3

months ending in uh September so Q3 was

down 27% from last year in fairness

their revenue year-over-year was up

slightly from last year uh if you look

at the 9 month month portion they're up

about 11% over here though I do think

it's interesting that year-over-year

their sales and marketing expenses

exploded their sales and marketing

expenses are up

51% and their R&D expenses in that

quarter are and on the year-over-year

basis are actually down so they're

spending a lot more money marketing

their product and less money researching

their product and more money on GNA and

so that's why they're lost actually

ended up growing when you compare year

toe further loss on operations if you

look at their balance sheet to me it

seems like they've got less than a year

of actual cash flow left and if you just

look at their payables they've got just

enough money to really cover a year and

a few months but they're going to have

to raise some money it would be a

perfect time to raise some money now

given that their stock has MD up so

we'll see what happens anyway look I'm

not the best at giving you the greatest

Deep dive in Quantum Computing so if

somebody can give a refined explanation

on this in the comments I'm happy to

hard it or pin it or whatever but I

wanted to give that as a breakdown

because I think it's really important to

know when you hear Quantum Computing

this is going to give you a lot more

perspective ah okay different types of

quantum Computing research milestones in

one don't equal all of a sudden d-wave

is going to the Moon it could for

momentum purposes because these stocks

trade so so minorly they have such

little float but that's also why they

can have have in one day because all of

a sudden the buy order book freezes up

nobody wants to buy anymore and people

want out and then it rapidly

disassembles right all right enough

about Quantum let's now talk about the

Federal Reserve so the minutes came out

today in my opinion these were mostly a

nothing Burger uh there were few signs

here of concern about persistent

inflationary pressures in the market

worth noting I did read all of it so I

want you to know I actually went I went

through the Fed minut

they said that Equity Prices rose in

anticipation of trump and after

liquidity and treasuries deteriorated

somewhat markets anticipate rate cuts to

slow considerably in 2025 and fed

Communications helped the perception of

these slower Cuts GDP growth is expected

to be slightly slower with 2% inflation

in 2017 downside risks to labor market

have uh to the labor market have eased

in recent months and all of them judge

the risks to inflation had increased

this is probably the most important part

and if you look at page n they basically

say the following likely effects of

political changes in trade and

immigration policy that's a quote would

lead to the upside in inflation risk so

this all started on December 18th when

the FED all of a sudden decided rather

than reacting to inflationary impetuses

like tariff policies they're going to

start trying to front run inflation

policies this is why a lot of people are

comparing the market right now to

December of 2021 where where they're

like um in December of 2021 the FED went

harsh and told us they were going to

raise rates that was a disaster this

December 18th meeting might somewhat be

similar where they're kind of like yeah

we're going to front run Trump which is

also kind of interesting because they

didn't front run stimulus inflation

they're like ah it'll be transitory it

won't matter and then they were way

behind the curve now people think they

are way too aggressively ahead of the

curve that they're crushing the labor

market and they're pre crushing the

market for Trump in anticipation of

tariff which may never come because my

thesis of course this I want to just

always clarify where my opinion is my

opinion is that with rates this high

it's just a matter of time before the

economy stalls out and when it does the

market crashes Donald Trump's not going

unless we get really good jobs data

right if we get really good jobs data

will be fine like if we get three months

in a row here of great jobs data hey

fine great soft Landing achieved right

excellent but Donald Trump's not going

to Institute his tariffs if the Market's

crashing and so then the FED is

tightening for nothing and causing a

potential crash for nothing freaking

idiots like you should know Trump's just

negotiating which we're going to talk

about Greenland in just a moment which

will be really fun but we got to get

through the fires first so do a lot of

people that was are freaking terrible

but anyway uh as far as the fed and Nick

Tios over at the Wall Street Journal

Nick T wrote an article basically saying

the FED is expected to keep rates steady

for January so don't anticipate a

Federal Reserve cut uh in January I can

give you the Market implied

probabilities as well really quickly

the okay um those shifted a bit

today uh the uh uh the the market

implied chance of a cut right now in

January uh is uh is is basically

negative

4.8% so like the markets think there's

like no chance that we're going to get a

cut in January uh and uh and and that

rises a little bit but not much to like

a third when we get to March all right

so today uh we did also have Waller talk

from the Federal Reserve he says that he

thinks inflation is going to keep making

further progress because 12month

measures of inflation could drop

meaningfully in the next few months

because of the q1 pickup last year all

right this is a lapping argument it

basically says that because inflation in

q1 last year was elevated when we

compare this year's inflation to last

year we should have lower numbers this

year because you know like if your last

year number is 305 and it was really

high and these aren't exact numbers I'm

just saying it and this year's number

has to beat that higher number if it

comes in even just slightly higher it's

almost going to look flat or maybe even

negative compared to last year not exact

numbers I'm just making stuff up to try

to help understand comparing to last

year but anyway that was Waller today so

with all that out of the way and macro

out of the way let's now talk uh fire

politics and then we got to talk

Greenland and crypto a little bit all

right ready for this m

m in case you haven't already heard I'm

sure you have California's on fire once

again Donald Trump posted no water and

fire hydrants no money and FEMA this is

what Joe Biden is leaving me thanks

Joe this is true especially regarding

the fire hydrants we need to talk about

that so far we are experiencing the

worst fire in Los Angeles history with

more than 1,000 structures hit in the

Pacific Palisades over 11,000 Acres

we've had multiple different fires fires

in santaa fires in uh the Olivas fire in

the Ventura County area were good here

just wanted to shout that out there are

a lot of people who are suffering though

and my heart goes out to them and their

families and their pets and their homes

and their businesses the Hearst fire the

Woodly fire the eaten fire which is like

over 10,600 Acres we're at 0%

containment which isn't unusual while

the winds are still blowing usually once

the wind sto blowing you could actually

contain these fires a lot of people

misunderstand California fires because

they assume that California fires are

really just like any other fire uh and

this this really isn't true now yes

there's more California can do and we're

going to talk about that but something

that you really have to know when it

comes to California fires is they're

just mostly driven by topography and

wind and in California we've got a lot

of mountains on the coast which create

valleys for wind to blow through and

these valleys make fir so freaking

deadly yesterday we had fires and uh or

that that were spreading because of wind

gusts between 50 to 100 Mil an hour in

some cases up to 200 mph gust which is

absolutely insane this is why planes

were grounded in many different areas uh

but especially firefighting planes uh

but take a look at this when you pull up

this this is the uh windy app I think

it's great for Aviation as well uh you

can see Wednesday at 8:00 a.m. this

morning I don't have yesterday's winds

anymore but you could see how right here

you've got uh mountains and ridges that

basically block the winds in this lower

sort of area of Los Angeles but where

they funnel through is through the

Burbank Valley and they come out over

here by the Palisades and Malibu and in

those areas that's where we've got

substantial fires uh and winds

specifically what we call the East Winds

are famous for causing fires in

California now a lot of people are

freaking out especially on social media

because there's talk about how insurance

companies cancelled policies before the

Los Angeles wildfires and this is true

companies like State Farm and other

companies did cancel insurance policies

this summer this is actually a very

common time and I'm not defending

insurance companies at all uh is a very

common time for insurance companies to

cancel policies because it's before Fire

season which is usually associated with

those easterly winds in casee you're not

in aviation or familiar with how winds

work when somebody tells you hey winds

are at 90° or easterly winds that's the

direction the winds are coming from that

took just between us okay that took me a

little while to understand uh I was

always like oh okay yeah wind's at 90°

so so they're blowing that way like that

was my stupid ignorant prior self now I

know better and so I thought I'd share

that with

you all right anyway uh so it's very

common that the East Winds cause fires

and and they're bad they they blow a lot

like nobody knows how to blow better uh

and and these exacerbate the problems

that you have in California now we're

going to talk about more of the problems

that we have don't worry in 2019 Donald

Trump talked about how there are old

trees in California sitting and rotting

and dying all over the place this

argument from Donald Trump in 2009 19 is

not actually entirely untrue it's kind

of True by some estimates there are

potentially as many

as 163 million dead trees in California

a lot of this is due to the droughts

that we face in California as many as

onethird of homes in California also lie

close to dense V vegetation uh or right

up to it so uh if you put it together

it's about 33% are within 1 and 1/2

miles and some are just like sitting

right on top of really dense vegetation

and a lot of this vegetation what

happens in droughts is basically the

brush dies kind of think like a desert

and then you're left with tumble weeds

or you're left with mulch basically that

just gets baked and dried out in the

California dry air this isn't like

Florida these aren't like Florida forest

fires where which you rarely get it's

like swamp fires right cuz everything's

wet you really high hum humidity we have

really low humidity so when you combine

droughts dead ammunition for fires

basically easterly

winds and low humidity you basically

create a Tinder Box in California for

fires now Donald Trump says people need

to manage the forest nobody is managing

the forest and yes this is true even

Berkeley which leans left obviously I

got into Berkeley but I didn't go to

Berkeley I went to UCLA for what it's

worth uh they argue that Forest

management actually helps and that's a

big thing coming from Berkeley in my

opinion but they argue that yes we need

to conduct controlled Burns we need to

burn the mulch that's on the ground in a

manner that we can control it when we're

not in an emergency situation and yeah

we need to manage our Force because

controlled Burns and maybe even de

brushing actually helps prevent large

catastrophic fires this is has been

studied many times before when I ran for

governor in California I ran on doing

more controlled Burns controlled burns

are really important because when you

have really windy environments what

you're actually doing is you're

worsening pollution through what's known

as black carbon or the spread of black

carbon black carbon is basically soot

and it's really bad for the environment

now it doesn't last that long in the air

because it usually you know it happens

in concentrated times when there's a lot

of wind this is why you do controlled

burns when there's not a lot of wind see

when you control the burns you can

decide when to burn it anyway black suot

doesn't last that long in the

environment cuz duh the wind dies down

but black carbon is considered a 100

times more potent than greenhouse gases

to climate change so it's kind of ironic

that there's so much of a push for you

know climate change but then you're not

doing controlled burns when black carbon

is so much more damaging to the

environment and these uncontrolled burns

are so much more

damaging okay then people get all

prehistoric and they're like yeah well

California was on fire all the time in

prehistory sure but we also didn't have

homes and and and and people living

there uh and the destruction to our

economy you know sometimes people have

this fallacious argument they're like oh

if a hurricane comes by and destroys 100

Windows well that's good for the economy

because now people have to replace 100

Windows wrong you basically dug a hole

to fill it yes you spent the money to

replace 100 windows but what did you get

out of that you got the same thing you

had before you got back to status quo

now if you spend that money on let's say

say research on quantum computers and

maybe you actually spend that money in

the same way where it has a multiplier

in the economy but you spend that money

in a way where you actually creating a

potential good for let's say curing

cancer well that's so much more

beneficial right and obviously I'm being

extreme with the example just to show

that no disasters are not good for the

economy they bring you back to net

neutral it's actually bad for the

economy because now you have less

Capital to deploy on things that

actually matter uh for the advancement

of society so no it's it's it's really

bad and Forest man agement is actually

very very important and it's a premise

that I ran on when I ran for governor in

California in fact here's just a little

piece here who is Kevin paffrath Cal

matters path's 5-year plan includes

eliminating income taxes for households

earning less than

$250,000 legalizing gambling because

we're going to tax the crap out of it

reforming the state's water and Wildfire

Management systems and creating net

negative energy plan communities around

the state basically building more homes

so you know things would be affordable

in California

I don't understand Nome said he was

going to do better and he didn't I'm

really disappointed he said that he was

going to do better when he got

reelected and he also said he was going

to do better when Joe Biden got

elected listen to it yourself is we are

committed as a team as a partnership

with the legislature uh and other state

agencies including now the federal

government no longer a sparring partner

but a working partner federal government

where we're not addressing headwinds but

Tailwinds in terms of the support a

memoranda of understanding doubling our

respective commitments to vegetation

management and Forest management and

prescribed Burns to support the Biden

Administration with resources not just

rhetoric to help this Collective CA

resources not just rhetoric what did we

get oopsies

I'm sorry okay I I can't hide I ran

against the guy for governor okay

obviously I lost I'm a loser but I can't

stand that guy I'm sorry uh and I'm

generally like you know me I'm generally

extremely neutral on this channel uh at

least the best you can be but that that

one just pisses me off uh so anyway then

we get into this idea that Trump says

that California chooses to dump extra

water into the

ocean all right so let's pull up the map

uh yes uh a lot of water does flow from

California Rivers into the ocean this is

not

untrue okay yes yes water flows into the

ocean uh one of the ways we look at that

is you look at the uh sanen and

Sacramento Delta and when you look at

that you'll actually be close to uh

where house hack has been a bunch uh but

look at this this right here is the

Delta okay I've flown over this area

many many a time and basically you get

the sanen river and the Sacramento River

they just naturally dump into this Delta

so this is a natural flow of water the

water comes off mountains that you have

over here it fills up Rivers hopefully

enough as the snow melts and then it

slowly just dumps out into the ocean yes

it is true water dumps into the ocean

that naturally happens now Donald Trump

says California is doing that on

purpose no California is not

purposefully dumping the water into the

ocean but the reverse is true California

is purposefully trying to not not dump

the water in the ocean okay let me

phrase that a little differently

California could be damning some of this

water diverting the water to actually

help fill up more of our reservoirs in

California to minimize the drought that

we have or droughts that we tend to have

or the water problems that we tend to

have remember I ran on water management

for governor as well okay but Gavin Nome

actually promotes damn removal here he

is cheering the largest dam removal

project in history listen to this

largest dam removal project in US

history and one of the most significant

if not the most significant water

restoration project bringing back salmon

and steel head into this Basin this

project could not have happened with

okay basically hey we want to protect

the fish and we want salmon or smelt or

whatever and we're worried about the

species so we're not going to Dam water

and we're not going to build up or pump

up reservoirs or the Colorado River with

more water because we want to protect

the environment but by protecting the

environment you're actually enabling

these crazy catastrophic fires which are

even worse for the freaking environment

see Berkeley has found that they could

just release new fish in the areas where

the fish are dying if you divert water

they're like instead of have you heard

of the phrase Catch and Release okay

that that has to do with immigration or

fishing depending on what you're talking

about there's also something called

hatch and

release yes hatch so you grow eggs well

like you take other fish and you you

know you make them have babies basically

and then you take the eggs you grow them

in tanks and then you go throw the fish

in the water like that is another way to

solve fish populations especially smelt

so yes you can solve the Delta smelt

endangered population by just throwing

more of them into the freaking

water in other words yes you can divert

water and damn water and fill freaking

things up look when I ran for governor I

talked about doubling the flow of the

water uh flow of water to California's

call colado River so we could actually

distribute it to our Farms throughout

the entire State specifically the Bread

Basket of California uh which which we

need we create a you know we grow a lot

of food you've got dry Farms it's crazy

but what you also have is fire hydrants

Running Out of Water okay so why do fire

hydrants run out of water is this

malicious is this intentional well it

depends how far down the rabbit hole you

want to go and I had a conversation with

somebody about this on X you could

follow me there at real me Kevin

how do you not have water for fire

hydrants that's not ignorant that's

malicious I wrote there are reasons for

this if the power goes out the pumps

fail okay this is important to know

power went out for like 400,000 people

yesterday in Los Angeles we had power

surges up here in Ventura uh if the

tanks run dry uh because certain areas

like the Pacific Palisades are uh like

the water reservoirs they have they're

tanks and if they run out because

everybody's turning on their water and

trying to hose down their property or

house burns down and the water line is

just leaking and spewing everywhere and

guess what hydrants have no water the

same thing happened in the Thomas fire

in 2017 in Ventura County so we could

have seen this crap coming we could have

seen it coming from how many years ago

is that seven eight years ago come on

seven and a half years ago we could have

seen this coming that yes fire hydrants

can stop freaking working especially in

hilly areas cuz you need pumps to pump

the water up the hill and what happens

when the fire hydrants don't work you

could have firefighters but they can't

can't do jack

anything so yes there are explanations

for this but that doesn't give you a

good reason because like Patrick says

hey I'm a I'm a Floridian who sells

industrial pumps for a living like come

on we can solve this with generators and

he's right and so this I say I 100%

agree in my opinion bad politics and bad

budgeting no excuse I suppose we could

say political corruption is the direct

malicious cause look I had a whole plan

for solving homelessness in California

of course gav new some won because he

said his plan is better homelessness is

worse than ever before in California and

some people actually say homeless people

and their videos of this just start

fires for fun uh because what else are

they doing and in windy times what do

you get massive catastrophic fires so

like see how all these problems really

start relating it's kind of bad but

anyway Newsome bragged about damn

removal in the past we talked about that

uh but another thing that's creating a

lot of oh yeah so regarding the fire

hydrants yes this is a big problem and

it should be fixed it's like insane that

a state with up to 13% income

taxes doesn't have water for its fire

hydrance that's insane I'm going to say

the word I'm sorry I I'm not meaning to

offend anybody it is full-on

that we don't have water in our damn

fire hydrants because of

politics that's

corrupt no wonder insurance companies

are fleeing the state because they can't

trust the government to actually do

anything mind you the government did

nothing still does nothing when illegal

marijuana Farms hook up to fire hydrants

and steal the water straight from the

fire hydrants depleting the very

reserves we need for these fires what

did California do the last

time they just removed the fire

hydrants yeah when they found out

marijuana Farms were stealing water from

our fire hydrants rather than actually

punishing somebody they just removed the

damn fire hydrant you could Google this

this is real stuff this is documented

and it happens it's

insane that's California politics for

you

today here's some more California

politics us Aid helped provide funding

for 16 fire brigades to Ukraine that's a

2024 story which means California sent

extra fire trucks to Ukraine

yeah and not just California but the

federal government as well because

literally the city of La from a 2022

article here the city of La sent excess

supplies that they had including helmets

body armor hoses nozzles turnouts blah

blah blah to Ukraine so fire trucks and

fire defense equipment in storage for

emergencies when God forbid you have to

call in all off duty fire uh uh fighters

to actually come in and help that you

actually have material for them to use

it was just given

away now but that would be amazing right

like would California ever actually have

to call in all of their off-duty

firefighters breaking emergency

officials have just announced that all

off-duty Los Angeles County firefighters

must report

immediate oh

all right I can understand why people

are frustrated stuff like that pisses

people off it's one thing if we give

away our fire equipment and we can

actually handle the fires that we have

it's another thing when we're giving

away our stuff and then we burn to the

freaking ground now of course social

media is all up in arms about this why

because diversity equity and inclusion

yes apparently Dei has been the big

priority for the Los Angeles Fire

Department uh rather than actually

focusing on the best potential

firefighting Los Angeles Fire Department

has the uh has its first female and

first lgbtq fire chief in La history she

promised a more inclusive department and

supported mayor garcetti's diversity

Equity inclusion Bureau Bureau at the LA

fire department this Bureau

specifically had to do with hiring

workplace conduct and promotion which

basically means that if you're black or

Hispanic uh or a minority or lgbtq or

whatever you have a highlighter through

your name uh because they have a

diversity equity and inclusion Bureau

that's going to make sure that you get

priority now a lot of people think think

that that would never happen that would

never actually like affect somebody

right there there's no way that they're

going to pass up a potentially good and

capable firefighter right well listen to

this for a minute because it's worth it

my white privilege so

badly I graduated North Hollywood High

with the 1.7 GPA find a job I walked to

a fire station in North Hollywood I was

19 I was living in the garage of my

family home my mom was on welfare and

food stamps and I said can I get a job

as a fireman and they said no because

you're not black Hispanic or woman uh

we'll see in about 7 years and I went to

a construction site and dug ditches and

picked up garbage for the next seven

years I got a letter in the mail sent to

my father's house saying your time has

come to do the written exam for the LA

fire department I took it and I was

standing in line and I had a young woman

of color standing behind me in line and

I said just out of curiosity when did

you sign up to become a firan because I

did it or person seven years ago and she

said

Wednesday um that is an example of my

white privilege

it's

oopsies this is bad okay it's bad

politics does matter anyway Joe Biden

did arrive via Marine 1 I believe to

Santa Monica Airport he spoke at the

press conference uh on the California

fires the press conference was pretty

lame it was basically the brass uh

showing in a PR move a PowerPoint style

presentation to the president in Newsome

I don't think Biden was actually really

paying attention because he just sort of

kept looking down at a note card that he

had and after making a few mumbling

statements from his note card he started

talking about the birth of uh a great

grandchild in his family which a lot of

people looked at and are like are you

kidding

me Gavin Newsome was also there uh I

think the biggest frustration though

that people have is that the mayor Karen

bass was not in the state yesterday

she's back today that's because she was

on a trip to Africa celebrating the

inauguration

of the president of

Ghana yes the president of

Ghana was hanging out with our mayor in

Los Angeles in Africa when the fires

broke out even though we knew the East

leer winds were coming Lauren has

literally been talking to me for a week

she's like Kevin the winds are coming

you better not be flying on these days

everyone in California knew the winds

were coming and we know what happens

when the winds are coming and the mayor

is like nah

man I gotta go hang out with President

Ghana

Karen bass has also been accused of uh

cutting the fire department's budget by

$22.9

million uh but if you actually compare

that to the actual expenses that the

government uh has has has spent or there

you know the the fire department has

actually spent uh the fire department

spent about $93 Million last

year and now they're only being all ated

$837 million which is a c of about $66

million from what they actually spent

last year and given that this is the

worst fire in LA's history it's possible

we might need a little bit more money

for La fire but they just don't have the

resources because they're focused on

their own political pet

projects it's

disgusting okay uh wildfires are often

caused by power lines homeless

accidental cars other purposes but again

they could be contained if we actually

and properly manage uh our uh Force fire

prevention we've already talked about

the Berkeley information so we won't go

into that uh in heavy detail uh but it's

worth looking at a few clips and images

of what's going on what the fire looked

like in case you haven't seen these yet

so I'm just going to go through a few of

these uh after this we're going to talk

about Greenland and Donald Trump there's

a lot to talk about with Greenland and

Donald Trump uh so we're going to touch

on that this is uh obviously what what a

windy fire can look like there were also

videos circulating social media of

people being in homes while they were

catching fire here are just some shots

of afterwards in the Palisades I was

actually in the

Palisades just a few days ago uh on a

very important meeting on Sunday and

it's interesting because if you follow

me on Instagram at meetkevin I actually

posted a video about how beautiful I

thought the Palisades were and how it

was basically like a a town of The

Jeffersons now the Palisades Mall

supposedly did

survive uh so that's good not everything

is destroyed but across from the uh

Palisades Mall you did see the

destruction of the 100-year-old building

the Starbucks was in which is also quite

devastating I mean you could see how

terrible this all looks uh you'll also

see the uh

here you could briefly see the Palisades

library on fire Malibu which remember

from The Windy app uh Malibu here you'll

see a home collapse that's on fire these

are you know 10 to20 million homes that

are right on the beach uh this is sort

of what the fire looked like from an

aerial point of view uh LA flights were

still ongoing although they were

reporting uh moderate turbulence for

Boeing 74 47 which which you know if

boeings are reporting turbulence you

don't want to be out in uh in a little

plane but uh let's just say it's it's

pretty bad the destruction is is

absolutely terrible there you could see

a nice image this was actually shared by

Elon where you could see the homes uh on

the beach and what it looks like or

looked like last night uh this was from

this morning by the way this one that's

showing right now so it gives you a

little bit of a look of what the

disaster looks like that's going on it's

really bad uh it's really sad and uh I I

just always encourage if there's ever a

fire uh or a windy situation I always

recommend people start thinking about

preparing even if you don't think the

fire is going to come to your area if

you have electric vehicles the most

important thing I could recommend to you

is please please please charge your

car uh that's an important one because

if you got to go you got to go because

if this is what it looks like like

outside of your window let's just say

it's time to go out the other side of

your home because you're about to get

cooked like an

oven I also don't understand why these

people are just standing here filming

this I understand the winds are sort of

blowing uh the fire up the hill and

you'll actually see them subside in just

a moment but it's just a matter of time

because the moment one of those glass

windows breaks those Flames come inside

and cook you alive you inhale one breath

of those flames you die like like it it

doesn't matter if your home's on fire

it's it's the breath it's the hot inhale

of those hot gases that kills you almost

instantaneously very bad very sad so

please GTFO if there's fire around it's

so dumb to be standing here but you know

he's got to do it for the

gram now we got to talk about Greenland

this is pretty remarkable because we

briefly touched on this yesterday Donald

Trump talked about needing Greenland for

national security purposes all right to

understand Greenland you kind of this

this is all right there there's a lot to

this but let's just let me start by

saying this The Economist hates Donald

Trump and The Economist thinks Donald

Trump should actually buy

Greenland so uh you know this is kind of

a way of them saying maybe he's on to

something which is really rare and I

always love knowing what people's

political biases are because that way

you could do that you know it's like oh

they hate Trump and even they think it's

a good

idea uh so uh anyway uh okay so look

here's China okay this is China this is

the earth wow Russia's like you know

over here uh so they they kind of touch

each other uh and there's there's a

purpose to this when China and Russia

touch each other like they do right over

here you don't really need to go through

the ocean to trade between Russia and

China we know they could just like

I shouldn't say ship but they could just

you isn't it weird that like cargo goes

on

ships uh uh but then we uh we ship

things uh like a shipment comes on

freight trucks it feels backwards but

anyway uh so China you know they they're

connected by land so we're not so

worried about their ability to trade

with each other they can trade through

land over here but what does Russia want

to do well what Russia and China they

want to trade with Europe and the United

States not so much Russia with the

United States but China does right so

this polar route uh requires a lot of

ice breaking equipment to get through

but look what's right here Greenland

Greenland can literally intercept

whatever Arctic trade is going on here

or the polar trades that are going on

over here and Russia and China have been

using a lot of icebreaking ships to go

through here Russia has been sending a

lot of submarines in this area they want

this area so this is of strategic and

geopolitical importance uh that is

Greenland is right okay fine so why does

Trump want it well Russia builds

military bases in the Arctic Russia is

posturing Russia has been increasing

their submarine patrols Beijing has been

investing in mining projects in

Greenland the Pentagon actually blocked

three airports that China wanted to

build there major trade routes that go

along What's called the polar Silk Road

actually avoid the Suz canal and have a

much shorter route the sus Canal route

to go basically from uh China to Europe

which you can see on screen here this

could take 25 to 45 days whereas this

route over here takes 20 to 25 days

obviously depending on where you start

it's worth remembering though that this

polar route is usually only functional

during the winter so you're not going to

use it all year long uh it is a much

shorter distance it's about 13 to 15,000

km versus the 20,000 km by going all the

way around and you don't have to deal

with the whole Middle East crisis that's

going on Greenland also has potentially

7 1.5 billion barrels of undiscovered

oil 148 trillion cubic feet of natural

gas and a lot of rare earth metals in

fact The Economist says that 3% of the

world's oil reserves are there 43 of 50

critical minerals are available to which

are of strategic importance to the

United States are available in Greenland

and The Economist says paying say $50

billion you know some multiple of their

small GDP for Greenland would be the

quote deal of the century now the more I

read about Green Greenland the less

farfetched it sounds because initially

when I heard about Trump wanting

Greenland I'm like this sounds like I'm

playing Age of Empires and there's no

gold left on any of the islands that

we've occupied and we're all going for

the gold left on an island somewhere

else talk of acquiring Greenland started

in 1867 and occurred again in World War

II but really never truly has taken

place again until today president uh of

Mexico Claudia shin also wants to rename

North America Mexican America after

Donald Trump threatened to rename the

Gulf of Mexico the Gulf of

America Duwan the founder of terraform

Labs will go on trial in January of 2026

some crypto Bulls believe that Trump's

crypto regulations and fed money

printing will be the next big thing for

crypto in 2025 this comes as Kazakhstan

has shut down 36 illegal crypto

exchanges in the country is building out

a cbdc and the 1hour RSI relative

strength index for Bitcoin is the lowest

since it hit

60,000

so what's left well we'll all find out

on jobs day won't we anyway thank you so

much for watching this I hope you like

the little chapter markers we have at

the bottom if you want the Daily Wealth

email make sure to join it over at

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we'll cover it in a different one or

just get the email over at meek

kevin.com and also sign up for the alpha

report at the bottom of the website me

kevin.com thanks so much for watching

and we'll see you in the next one

goodbye and good luck do not advertise

these things that you told us here I

feel like nobody else knows about this

we'll we'll try a little advertising and

see how it goes congratulations man you

have done so much people love you people

look up to you Kevin PA there financial

analyst and YouTuber meet Kevin always

great to get your take