Trump's Iran Speech PANICS The Market | PBD #768

**Patrick Bet-David** (0:30)
Back to last night's speech that the president gave. We have Richard Werner here, the godfather of quantitative easing. We got Luke Gromen here on macroeconomics and our microeconomics. We have Vincent O'Shauna here with us as well. A lot happened yesterday, right? To give some numbers here before we get into it. Rob, why don't you start off with the clip? Why don't you start off with the clip on what the president said that made the futures go berserk? This is the exact moment.
Everybody was waiting to see what the speech was going to be. Was there going to be a big announcement? Was there going to be something massive, positive? You know, the Gulf States are going to pay for the war. What was it at the end when this comment was made? I will share with you what happened to the markets. Go ahead, Rob.

**Donald Trump** (1:13)
To the progress we've made, I can say tonight that we are on track to complete all of America's military objectives shortly. Very shortly. We're going to hit them extremely hard over the next two to three weeks.
We're going to bring them back to the stone ages where they belong. In the meantime, discussions are ongoing. Regime change was not our goal. We never said regime change, but regime change has occurred because of all of their original leaders' death. They're all dead. The new group is less radical and much more reasonable. Yet if during this period of time no deal is made, we have our eyes on key targets. If there is no deal, we are going to...

**Patrick Bet-David** (1:55)
Okay, SMP futures, Dow 1.48, Dow 1.36. Oil, gas prices right now, 112.17. It's skyrocketed. While this is going on, at the same time, we're hearing a bunch of other news that took place. And that statement, Bitcoin dropped. Markets concerned. People are worried. What's going to be happening? He did talk about the 4 million kids in America right now have that Trump account that's been created, which was some of the good news that he shared. But some people are even speculating that the news was so scary for some people that even the Artemis II that went to space yesterday, because of the speech, the toilet stopped working. Because now that's speculation. I don't want you to go fact check me on this and ask Grokker or some of these other things. But people were expecting something else. Richard, why did the market react so negatively to yesterday's speech?

**Richard Werner** (2:50)
Well, in many ways, there was no news. There was no sort of real new announcement. And to the contrary, there was perhaps, well, there was disappointment. For one, the time scale, the timeline stayed pretty vague. We're told, well, it's going to soon end, but we've heard that before. And the wars that are going to end soon, and they go on for a very long time thereafter.
Yeah, he repeated, on this clip, as we saw, he's going to bomb Iran to the Stone Age from henceforth, which is a big task. It's a major country. And actually, didn't he care about the Iranian people? Wasn't that in the beginning, the story?

**Patrick Bet-David** (3:31)
That's the criticism right now.

**Richard Werner** (3:32)
So all these contradictions, and that's just, you know, that's just typically the iceberg, I think.

**Patrick Bet-David** (3:36)
Luke, what do you think? First, what do you think about the speech, too? Why do you think the market reacted so aggressively, too, back to Stone Ages?

**Luke Gromen** (3:45)
I think exactly what Richard said, where the contradictions, I mean, I received texts from institutional clients around the country. One of them said they should have called this speech stuck. Another one said this could have been an email. But I think why the markets ultimately freaked out and then carried through on that freakout is what he said about the Strait of Hormuz and the contradiction therein, which is, he said something along the lines that it will open up on its own eventually, naturally, maybe our allies will help us. And the contradiction within that is...

**Patrick Bet-David** (4:19)
But not really our allies will help us. He even said they got to figure out themselves and will help them if they need it, but I think they have it themselves, like almost leaving it to NATO and some of the others to figure out for themselves.

**Luke Gromen** (4:31)
Yeah, I think that's right. And there's a huge contradiction therein. We're the greatest military in the world. We are the reserve currency issuer. Our job is to use our deep water, deep blue water Navy to maintain freedom of navigation for the world. That is why the world, there's a big reason why the world uses the dollar as the reserve currency. And so if we say, hey, this isn't our problem, number one, that starts to raise serious questions about why am I paying the Americans for weapons? Why am I paying the Americans to hold dollars? And then also, at a more fundamental level, if we're winning, why can't we open the Strait of Hormuz? If their Navy has been devastated, if their Air Force is devastated, if their offensive capabilities have been devastated, why can no ships sail through there?