Hey this is tom, and i want to explain why the market crashed today and unfortunately, it's not going to be pretty. It's not going to be pleasant and you're, probably not going to like a lot of what i have to say here, but i'm going to call it like. I see it and if some of you don't like it well so be it. When i go to the doctor's office, the one thing i will not accept is the doctor telling me what's wrong with me.

Is my symptoms? Another explain to me the underlying condition. That's causing these symptoms. Like i know i have a fever what's wrong. Why now, with this market right now, the main explanation, you're, seeing from mainstream media and on youtube and another social media, is basically well.

Inflation is too high, the fear of interest rates and recession, blah blah blah is basically pushing everything to readjust and again, that's not factually incorrect. It's just basically talking about the symptoms, not the underlying problem, because you absolutely cannot fix the problem. If you treat justice symptoms, unless it's a common cold and trust me, what we have right now is the furthest thing from common cold you can make up. I mean this is not even.

This is like a heavy right now. So if you think that you understand what's going on right now by looking at inflation, i got another thing coming for you, inflation is the symptom, you know. What's the root cause of inflation, it's a lot of things, but the main thing that's causing inflation. Is energy prices, energy prices, drive, inflation, make no mistakes about it.

The main input in creating goods and services is energy prices with energy prices go and they go above 100. Bucks, 120 bucks. This is the root cause of inflation. We can handle secondhand cars, we can handle certain commodities, we can even handle wheat somehow, but we absolutely cannot handle elevated energy prices because everything goes to.

So if energy prices is causing inflation, we only have one solution here is basically to destroy demand. If we destroy demand, then energy prices will go down. So essentially you have your own government right now trying to create a controlled demolition of your own economy to prevent energy prices from absolutely destroying your economy. So basically, let's try to destroy the economy a little bit.

So it doesn't get totally by inflation, which is two options which i don't like. But here's the part where i don't understand the people who are in charge. Because i ask myself this question - and i just don't understand like look so for the past few years and when i say a few, let's say: 30 since 1990s, we've completely shipped out every single mean of production out of the us, and the same thing happened in Europe, so that we are all now making all of our in china and it's essentially like a company saying well, why do we need to diversify production? Let's just build one huge factory putting in one country and make all of our 100 of our there? It's much cheaper to do it this way than building four or five different factories. Why does tesla have so many factories, one in china, one in europe, one in the us two individuals, sorry texas and california, right because there's more to it than profit margins? If you put all your ads in one basket, you're gon na get annihilated in business the moment something goes wrong and all your production is in one factory, you're gon na get.

So, if that's true to business and that's true to every single entrepreneur that can tell you this in his sleep, why the fact that our government for the past 30 years completely shipped out all of our production - everything except from i don't know jet fighters and and Cars everything we build in the us comes from china, so we have one factor in china that builds like 90 of. Did we not think that things can go south and when things actually went south, which is basically the pandemic, that one factor got shut down boom? We have no, we have no stuff. Oh surprise, that's number one! The other decision, i don't understand, which led to this of a situation that we're in right now is that okay, so we know that energy leaves uh prices right. Energy leads inflation.

Okay. So why don't? We do everything possible to bring up energy prices, let's absolutely go ham and kick the oil industry in the nuts. Now, i'm all for evs, i'm all for renewables for sure, i'm a huge teslable. You know this, but why at this point, where we're probably like a decade away from going renewables and that's being generous, why would you kick the oil industry in the nuts and say: hey, we don't need you anymore, get the out we're absolutely taking a dump on You so once you did this, the oil companies, basically beyond the fact that they got slack their profit margins, went down.

They i mean they. They got into some tough situations. But beyond that fact, at this point, they're saying we're not going to invest in building any new for you. Why you guys are absolutely working against us.

It makes no sense. It's too much risk i'm not going to commit billions of dollars into developing a new energy capacity. If you guys are going to abuse me work against me, try to destroy my own industry, i'm just not chevron. Ceo went on record saying, i don't think we'll ever see a new refinery in the u.s ever again because of that reason takes years to actually develop and monetize and get profitable in the energy sector.

And if the government is working against you, why would you so if you went on like this esg rampage, god help us and you absolutely push the oil industry to under invest you created under supply great, so now the first time we have a sign of trouble Which is basically economies reopening and basically needing energy to build to travel? No more supply. Surprise! Surprise, because you kicked everybody in the nuts. Why don't you fuel your jets? Uh? You know the airliners with with esg, i mean right fuel them with the quality fuel them with the diversity fuel them with all the stuff that make up esg right, i'm just kidding. Obviously i think equality is important.

Diversity is important, but i'm saying like how how we were supposed to fuel our jets right now in our cars i mean at this point. It seems a little bit problematic to fuel your jets with concepts you need actual oil. The other thing we did is basically, after we annihilated the oil industry in the u.s, we went ahead and absolutely destroyed our relationship with the one guys who actually decide how much oil opec is going to produce now. Just to understand, opec is the cartel that controls the pretty much the oil supply in the world and when they decide to with you, it's going to be a very painful experience, and i mean literally no i'm just kidding.

You know what i mean. So we went ahead and completely destroyed the relationship with the saudis, who basically are the dominant force in opec, along with the uae and basically said hey. We don't want to be friends anymore with you. You know go to hell so now.

Basically, we need opec because we can't get oil from russia. Our own domestic industry is underinvested. We don't have anything coming from venezuela, we don't have anything coming from the iranians, because they're sanctioned we need oil and with the removal of russia and the increase in demand. Inventories are the lowest level in oecd countries in eight or nine years, so we're coming up to opec.

He's like hey guys, hey um, you remember when we like completely said you're a horrible piece of well. We need your help right now, and opec is right. Now, printing money with this 120 bucks per barrel, what did you think is going to happen? Did you just think like opec is going to basically say no, let's say opaque? I mean the saudis they're just going to say. Well, you know what you know we're going to help you out.

Despite you, you know basically call us douchebags, no problem. Of course opec said you know what go to hell. You deal with your own situation right now. Why don't you eat what you cooked? So now you understand where this inflation is coming from when we built our entire economy, based on the assumption that nothing will ever go wrong and the minute we have a pandemic in the war, which is two unlikely scenarios.

But then it happened. The entire infrastructure is collapsing because we don't make any of our. We don't have a stable energy supply system and we completely ruin the relationship with strategic partners that can help us great, and now you understand how share prices drop like a stone, it's a symptom. Now, if you actually want to fix and address some of these issues, it's got to start with actually building trust again with the energy industry.

In the us, it's got to start with strategically actually bringing back manufacturing to the us. It's got to start with fixing the relationship with the saudis. All these things needs to start happening if you want to see any sort of change, and even that's going to take a long ass time, so i wouldn't hold my breath.