WEBVTT

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Welcome back to the deep dive. So, you know,

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today we're talking about something that really

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caught our eye in the financial news lately.

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Yeah, it's a big one. Could be huge even. It's

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definitely got us thinking and we're willing

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to bet it's something that has you as a listener

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wondering what's going on, too. Basically, we're

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talking about the U .S. government and its gold

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reserves. Big topic, right? Right. And specifically,

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this idea that's been floating around about them

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potentially, you know, changing the way they

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value that gold. Exactly. Repricing it. And we've

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been really digging into this article from March

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9th of this year, 2025. It really gets into the

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nitty gritty of what this could mean. All the

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potential fallout, the market chaos, the expert

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opinions, all that. So we're going to break it

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down for you, hopefully make some sense of it.

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No jargon, we promise. The U .S. and gold. Long

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history there. Yeah, everyone knows the U .S.

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holds a ton of gold, right? Like more than anyone

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else. Largest reserves globally. That's right.

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Largest gold reserves in the world. But it's

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not really about how much they have. It's how

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they're valuing it on their books, you know,

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because right now it's all based on this price

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that was set ages ago. Yeah, super outdated.

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So this whole repricing thing, it's about bringing

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that valuation up to speed to today's market

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price. Exactly. And that's where things get,

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well, kind of crazy. Because, you know, changing

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that number has a ripple effect. A big one. A

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huge ripple effect, potentially. It could impact

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the whole U .S. financial picture. And then,

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you know, that spills over into the global system,

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too. For sure. So I guess we should start with

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where this whole idea came from, right? I mean,

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it didn't just appear out of nowhere. The article

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points back to something earlier this year. Yeah,

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that's right. Back in February, early February,

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the Treasury Secretary, Scott Besson, he made

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this comment about unlocking government assets.

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Unlocking. Right. To free up some cash, basically.

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Yeah. To get some more liquidity in the system.

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Now, he didn't come right out and say, we're

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talking about gold. But people put two and two

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together. I mean, you start talking about monetizing

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assets on the US balance sheet, people start

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thinking, what assets? What are we talking about

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here? Especially when you consider, you know,

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the sheer size of those gold reserves. So it's

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like this big question mark hanging in the air.

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Big question mark. So OK, that's the setup. Now

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let's get into the details. What does repricing

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actually mean? Like, if they do this, what are

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they actually doing? OK, so repricing. It basically

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means they're adjusting the value of their gold.

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on paper to match the current market price. Okay,

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so they're saying this is what it's worth today,

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not what it was worth way back when. Exactly.

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And the article gives us some numbers to play

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with. Oh yeah, let's hear the numbers. Right

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now, those gold reserves, they're valued at around,

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get this, $11 billion. $11 billion. $11 billion.

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But if they were to reprice it today at today's

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market value, that number jumps to, wait for

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it, an estimated $760 billion. Whoa, that's a

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jump. That's a big jump. So think about it. Imagine

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your house suddenly being worth way, way more

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than what you bought it for. That's a good analogy.

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But on a national scale. Exactly. National scale.

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OK, so that's not just a little accounting tweet.

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No, this is significant. So what happens to the

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US balance sheet if they do this? I mean, that's

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a huge influx of assets, at least on paper. Right.

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It's like injecting a ton of new resources into

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the system, almost like another round of, what

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do they call it, QE? Quantitative easing? Yeah,

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quantitative easing, you know, where the central

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bank buys assets to increase the money supply.

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Right, right. So it's like they're printing money,

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but with gold instead of, you know, actual printing.

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Yeah, kind of. And that's where some economists

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get nervous. They get nervous. Why? Well, the

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article quotes this guy, Lou Crandall. He's the

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chief economist over at Reitz and ICP. And he's

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basically saying, hold on. This could have some

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serious consequences. What kind of consequence?

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Well, when you suddenly have this massive increase

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in the value of government assets, it can really

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mess with things like inflation expectations,

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how the national debt is perceived. Right. So

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it's like the U .S. looks a lot richer on paper,

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but is it actually richer? Exactly. And everyone's

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trying to figure out what that means. Yeah. It's

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a big change for the markets to digest. To digest.

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Big change. OK. OK. So that's the balance sheet

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side of things now. Let's talk about the actual

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price of gold itself. What does this do to gold,

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even if the U .S. just reprices it and doesn't

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actually sell any of its reserves? This is where

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things get really interesting. The article talks

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to Francisco Blanche. He's the head of commodities

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research at Bank of America Securities, and he's

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basically saying this would be a huge boost for

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gold prices. Huge boost? Like a tailwind. Tailwind,

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okay. You know, pushing gold prices higher. Right,

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pushing them up. Why does he think that? Well...

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He says it would change the way people think

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about gold. Like some people see it as this old

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fashioned thing, a relic of the past. A barbarous

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relic is what they call it. Barbarous relic,

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okay. Yeah. But Blanche is saying this move would

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make people see it as a serious valuable financial

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asset again. like relevant to today's economy.

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Right. It's not just something your grandma keeps

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in a safe. Exactly. And it's not just Bank of

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America saying this either. OK, so who else is

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on board with this idea? The article also quotes

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this independent analyst, Brian Hicks. And he

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actually takes it a step further. He says, yeah,

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it could strengthen the US balance sheet, but

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it could also trigger a global shift. Global

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shift. Yeah, a global shift in how people invest

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in gold and commodities in general. Like, it

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would basically confirm gold's role as a major

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player in the global monetary system. Wow. So

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it's not just about the US, it's about the whole

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world potentially changing how they see gold.

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Exactly. That's what the article is saying. Like,

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this one move by the U .S. could set off a chain

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reaction. Fascinating. So, okay, the article

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also gets into the nuts and bolts of what they're

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actually thinking of doing. They're talking about

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doing an audit of all the gold reserves, right?

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That's right. At Fort Knox. At Fort Knox. Like

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a proper accounting of all that gold. So, like,

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they're taking inventory before they do anything

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drastic. Exactly. Makes sense. But then... The

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article points out something kind of weird. It

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says, hold on, the U .S. doesn't keep all its

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gold at Fort Knox. Like, there's a lot of it

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elsewhere, too, right? Including a bunch that

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the Federal Reserve holds. Yeah, independently.

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Which makes you wonder, you know, if they're

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serious about this whole repricing thing, why

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just audit Fort Knox? It's like, are they getting

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the full picture? or are they just dipping their

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toes in the water here? That's a really good

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point. It's like if you're going to revalue all

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your gold, shouldn't you know how much gold you

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actually have? Exactly. So it kind of raises

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more questions than it answers. It does. OK,

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so let's take a step back here. Big picture time.

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If all of this actually happens, if the US goes

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ahead and reprices its gold, what does the article

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say the impact could be? Well, they're saying

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it could be huge. Huge I mean you're talking

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about changing the US balance sheet in a big

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way. Yeah, and that could affect everything You

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know the entire financial system right and then

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globally the price of gold could skyrocket and

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that could change how everyone Everywhere thinks

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about gold Wow It's like a butterfly effect.

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One little flap of the wings in the US, and the

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whole world feels it. Yeah. And the experts they

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talk to in the article, they're definitely paying

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attention. This isn't something they're taking

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lightly. So it's not just about changing some

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numbers in a book, is it? No. It's way bigger

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than that. This is about a fundamental shift

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in how gold is viewed. Right. Is it just a shiny

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metal? Or is it a cornerstone of the global financial

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system? Exactly. And that brings us to something

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we want you to think about. Imagine a world where

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gold is more than just, you know, jewelry or

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something you buy when you're scared about the

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economy. Imagine it's a central part of how everything

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works. It makes you wonder, you know, how would

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that change how you invest your money? Right.

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And what would it mean for the whole global system?

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Would it make things more stable? Less stable.

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Big questions. Big questions. And this deep dive,

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based on this article, it doesn't give us all

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the answers, but it definitely makes you think.

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It does. So thanks for joining us, and keep thinking

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about it. It's going to be interesting to see

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how this all plays out. Yeah, it will. Thanks

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for listening to the deep dive. We'll see you

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next time. See you next time.