Let me start off by saying this is a video for the Facebook book blah blah blah the Facebook group my creative year If you don't know what that is. It's a year-long journey of art and creativity Accuraging you in a daily practice and hopefully hopefully inspiring you to try some new things If you would like to join it's in the link is in the description below I and my co-teachers all really have a great time bringing you content on a monthly basis and Inspiration hopefully on a daily basis for another And this is all about where my muse is and what she's screaming at me to create right now So for another group that I'm member of art joy of sharing They had a challenge for the month of June you're all watching this in July to create an artist trading card for the every day for the month of June and I moaned and groaned and whacked my head on the table and then said okay And so instead of doing a card. I decided to do a coin now before I moved and for those that don't know I moved from the state of California to the state of Oregon September last and that was a big deal very stressful There was a lot of other stuff that happened All at the same time of the move because the move evidently wasn't stressful enough So the universe decided to dump other stuff on me, but anyway I At the time before the move punched out a bunch of these coin blanks the bases and some Coin backs and I actually had some fronts too, which I think I've used up all of almost all of them now I punched a bunch of them out before I even moved Intending to have these at least work on during the move to keep me from getting stressed So that didn't happen. I didn't I got stressed But I never worked on these I did other things and I was setting up the house So when the challenge came I thought you know, I've got all those coins punched out I should just do those instead of a traditional artist trading card And so that's what I've been doing now a traditional artist trading card is two and a half inches by three and a half inches and A coin is two and a half inches across. I have a punch By ek success. That's a two and a half inch circle punch and that's what I punch everything with I punch a front. I punch it back and and I punched them. I'm sorry. I punch the middle This is just like a base stabilizing piece of mixed media paper I punch it back Which is just printer paper and then I punch something for the front that could be scrapping paper printer paper I Did one or I've done some out of Security envelopes junk mail. It just depends on what's on my desk at the time So I'm having fun doing those And I'm collecting them and putting them in the jar and like I said, I have been sharing them on social media I will be doing a flip of everything in the jar with a little mini tutorial of my process for one of the coins In an upcoming video. So look for that, but I'm having a lot of fun Creating the coins and using up the bits and pieces on my desk If I need to dig through my my my ephemeral bank or what I call my small bits bank for pieces because nothing On the desk is inspiring me. I do do that. It's very handy in the new art room. I can find everything But generally speaking I pull a few things out on the table I try to use all or most of them up then I pull a few more things out onto the table And I just continue that process and that's working really well for me. I'm also having a really hot fun time With both the coins and the paper clips really creating things that are super Dimensional look at this one. These are things that you couldn't possibly ever do in your art journal I do do mixed media sort of sculptural Wall things every now and then But this is really just a new and different way to use them up And it's not something that has to go in a book So you have to worry about the book never closing But at the same time these particular ones these are paper clips So they could be clipped to the journal cover to decorate the cover or the spine And I'm just loving these as you know just little pieces of artwork They are just wonderful and if the lighting is a little funky is because it's the end of the day and I didn't think to do this earlier in the morning anyway, I'm really having a fun time doing them and My use is really screaming at me to continue the process. I do think that I am going to try my hand at Um tags, I don't mean office supply store-bought tag I mean like something off of something you bought.  I'll bring out the basket the paper clips or the coins, but we did them on tags and then we um attached them all together with a ribbon or a Binder ring or Safety pin or anything. I mean I just I think the possibilities are endless And I think what I'm really enjoying is I forgot the joy of doing these little small projects now I do do something called that I call grab and glue Cindy utter really got me turned on to it.  It can't be dimensional so With these you can be as dimensional as you want to be the coin I did yesterday You all saw this way if you follow me on social media, is that right way up?  Where are we there? We are you didn't see this view Do you see how thick that is on? These coins or the paper clips you can be as thick as you want to be there's no rule this as you can't So this is where my muse is at It's really screaming at me to use up all these crazy bits and pieces to really go way out there Make it dimensional make it fun. Use the random crazy things and see where that takes me I want to encourage you all to do the same thing and I want to see what you can do with that going forward this month Maybe if you're in the Facebook group You can take the daily creative words and see where you can go with that in your creations of things I know I do daily drawings and if you're in the Facebook group and follow me on social media You see all my daily drawings. That's not for everybody. I realize that but maybe creating a little coin or a paper clip or a clothing tag Something small something wacky and crazy and dimensional. Maybe it's got paint. Maybe it doesn't maybe it's all blue It doesn't matter See where you can go with that I'd be really Happy and encouraged to see your ideas on where you can go with this I think it's just a fabulous idea and it's really a great springboard to refreshing our creativity. I Will be again doing a tutorial With a flip of all the June coins and I will also probably be filming a tutorial for the paper clips and Probably be filled in filming one for the tags. They're all going to be similar of course process, but I'll do it if you guys want me to anyway, I hope this gives you some idea of What you can do and where you can go with this if your muse is screaming at you to do something wacky Maybe she's just not all crazy and by the way, mine is even telling me not to throw these little like cut-off feathers away Where I cut the top off and I know what she wants to do with them yet, but Anyway, that's it for today. If you want to follow me on social media my link tree list of links and places where you can do that is in the description below along with my Etsy store and my where you can buy my book and All the places you can get merch with my art printed on it all that stuff And also the link to the Facebook group is in the description below along with my happy mail address and all that stuff So check it out. Don't forget to like share and subscribe and the most important thing Go out and have a great day make some crazy art and do something nice for yourself because you deserve it And I'll see you later. Bye guys


Okay, guys and guillettes, girls and guillettes, today we are going to discuss common sense. Is common sense nonsense? Or does it tally well with what psychology tells us? Psychology, as you remember, has a pretension to be a science, and while it is not a science, by any extension or interpretation of the word, still it is much more systematic, much more methodical, and much more deep than most people's intuitions and so-called common sense. The other day I received a comment online, followed by an email. Keith Campbell is arguably the number one experimentalist when it comes to narcissistic personality disorder, together with Jean Twench. Otto Kemberg is the father of the field, father of the modern field of personality disorders. Most of what we know about borderline personality disorders come from him, and a lot of what we know about pathological narcissism can be traced back to his pioneering work in the 1970s, 80s and 90s. And the comment and the email that I had received said, and we are not watching Campbell and Kernberg online, is that they don't have a clue about narcissism. I try to watch their videos following your mention of them, so I try to watch their videos, and this guy gets it wrong all the time. And then she gave me a list of who these guys should watch in order to learn about narcissism. The list contains many coaches, self-styled experts, victims of narcissistic abuse and so on and so forth. So, Campbell, Kernberg, you have been warned. Your knowledge is utterly, utterly erroneous, and you should immediately get to work and upgrade yourself so that you finally can reach the level of several of the online coaches mentioned in the email that I had received. So you need to look forward to something to do during the pandemic. But this is a great example of how intuition and common sense fail us. You see, not everyone feels that he is a great physicist.  Are you physicists? There would be the odd grandiose narcissist who would consider himself a bit greater than Albert Einstein. But nine out of ten, or statistically actually 97 out of 100, would tell me no. We don't know much about physics, and we need a physicist to tell us what's going on. But if I were to pick the same hundred people and ask them, do you know anything about psychology? They would be reversed. Only three out of 100 would say that they don't know much about psychology. 97 out of 100 would say that they know a lot about psychology. And how do they know a lot about psychology? They observed, they introspected, they fought a lot, they analyzed, they synthesized, they read self-help books, they listened to online coaches, and they observed the sopranos on television. Here's the problem. Every advice given online, even by self-styled experts, and most of them are self-styled and not experts, is not only wrong. It's harmful. Most of this advice has detrimental consequences to your mental health, to your functioning, and to your future relationships, in the medium term and in the long run. And why this advice is so destructive? Because it's wrong. It's wrong because our intuition and our common sense have extremely little to do with facts. You see, our intuition and common sense are there to help us uphold our self-image, our view of ourselves. We don't really see the world. We don't really see other people and we don't see reality. We mold them, we play with them, we reframe them, we change them, we construct narratives. And this is called psychological defense mechanisms. And we use these defense mechanisms to allow us to survive without modification and without narcissistic injury and without pain and without hurt. Because we need to believe that we are good people. We need to believe that we're intelligent. We need to believe that we are liked, maybe even admired. We need to believe these things. We need to believe that people around us like us and love us and have our best interests in mind. We need to believe that people are empathic and essentially good. We need to believe that we are special in some sense, in some vocation, in some niche. We need to believe these things. And so our intuitions, our common sense judgments, our opinions, they are built to support all this. They're not built to give you a true picture of reality. That's my job. That's why you hate me.  And you don't want the truth. You do not want the truth.  Lie number 999. I actually seek the truth. I don't recoil and I don't flinch from the truth. I'm a truth lover. Nonsense. No one is. So I want to give you two examples of advice that is very, very common online and is seriously bad for you. Many, many coaches, experts, counselors and even psychologists with real or fake doctrines. Hint, hint. Many of them would tell you that venting is good for you. It's good to vent.  It's good to share with others what had happened to you as a victim, what had been done to you, how your abuser had abused you for no reason. You will feel better afterwards. Everyone reassures you. I have watched, I don't know how many videos, where this is the main core. That's the main piece of advice. Share. Share. Tell. Disclose. Vent. Let it go. Allow yourself to be angry. Allow yourself to be furious and to rage. Well, here's the problem. Research conclusively shows that venting has the exact opposite effect than intended. Exact opposite effect of what you're being told. Venting does not calm you down. Actually venting enhances, positively reinforces your anger. Venting causes you to become more angry and for a much longer period of time. Venting ossifies, grudges, causes rumination, destabilizes your inner precarious balance, makes you feel extremely bad. Develop what we call negative emotionality and negative automatic thoughts. Causes you to catastrophize. There is absolutely nothing good about venting, not a single thing. The punching bag advice is bad for you and for the punching bag. I will mention two sources out of hundreds. Jeffrey Lor, LOHR. He is a psychology professor at the University of Arkansas. In 2007 he co-authored a very famous study. The title of a study is the Pseudo-Psychology of Venting in the Treatment of Anger, Implications and Alternatives for Mental Health Practice. It was published in the Scientific Review of Mental Health Practice in 2007. The second study I would like to mention in this context is a 2013 study, a little more recent. Anger on the Internet, published in Cyber Psychology, Behavior and Social Networking. It's an academic magazine. The researchers in this study, they discovered that users on rent sites, because there are sites where you can go to rent, to rent and to rave and to complain, and to vent and to express your anger and your rage against your boss, against your spouse, against your lover, against your children, against you name it. And the users of these sites were more anger-prone in general and more often participated in negative behaviors such as verbal and physical fights, as well as reckless behaviors such as reckless driving, reckless drinking, shopaholism. They also developed all forms of addiction and so on. The more they vented online, the more they shared their pain, their hurt, their anger, their rage, their sense of injustice, their passive aggression, the more they did this, the more entrenched they became in these extremely negative feelings. It didn't help them. It drowned them. It drove them under. So instead of simply letting off steam, they were actually fueling the fire of discontent and unhappiness. That's a prime example how most of the advice that you receive online from alleged experts is utterly wrong. Let's take another example. You're constantly told, especially the empaths among you, those who like to feel morally superior and totally victimized, because it makes you feel good to be morally superior and totally victimized. Most narcissists feel good in this condition. So, you're constantly being told that empathic people read others well. If you have empathy, you can read other people. You can understand them better. You can tap into their minds. You can connect with them. You can comprehend their motivation, their intentions. You can resonate with their emotions, with their fears and hopes and priorities and preferences. You can absorb their pain and hurt and ameliorate it and reduce it somehow. You can help them, etc, etc, etc. Here's the only problem. The more empathic you are, the less well you read other people. Truly highly empathic people, HSPs, highly sensitive persons, don't read people well at all. They have almost a total failure rate in reading other people. They are very much like autistic people. So, highly sensitive people are almost indistinguishable from people with autism spectrum disorders, as far as understanding other people. They don't understand other people well at all. They misread them. They attribute, they misattribute intentions, wrong motivations. They misbehave. They read social and individual and body language cues catastrophically wrong. Why? Because they have high empathy. High empathy precludes understanding the other person well. The higher you are in empathy, the less you understand other people. And the less you connect to them, the less you are able to help them. Exactly opposite what all of you are being told online. By self-interested psychology professors, coaches, real doctors, fake doctors, and a million others who are after your wallet and money. Many of them are real academics and they know very well what I know. That they're lying to. They're lying to you about empathy. Again, academic sources. I refer you to studies by Jacob Israela Shvili. Israela Shvili is like Israel plus Ashvili. Jacob Israela Shvili currently is at the University of Amsterdam. Studies by Disa Souter and by Agneta Fisher. And one such study that I will mention totally randomly out of hundreds. Different phases of empathy. Fillings of similarity. Disrupt. Disrupt recognition of negative emotions. It was published in the Journal of Experimental Social Psychology, Vol. 87, March 2020. And here are the conclusions of one of these major studies. Number one, recognition of emotions. I'm quoting. It's not some vat name. It's Akadim. It's the science of psychology as opposed to the nonsense of common sense and other con artists. Here are the conclusions. Number one, recognition of emotions becomes less accurate. Less accurate when having had similar negative experiences. Actually, if you share the same experience with someone, you recognize their emotions less accurately. In other words, in other words, if you're a victim of narcissistic abuse, you should absolutely avoid other victims of narcissistic abuse because they are likely to read you very inaccurately. And if you try to approach them for support and support and understanding, you will end up badly. You will end up in a conflict and dissonance and fights and trolling and flames and a big mess. Many of you have had this experience. Let me repeat this counter-intuitive conclusion. Recognition of emotions becomes less accurate when you have had a similar negative experience to someone. Number two, personal distress evoked by a negative story inhibits recognition of the storyteller's emotions. Personal distress evoked by a negative story inhibits recognition, prevents recognition of the storyteller's emotions.   You develop distress and you do not recognize her emotions. You are unable to help her even if you had been, especially if you had been a victim of abuse yourself. Finally, another conclusion. Being instructed to take another person's perspective does not help to recognize emotions better. If you're instructed to take someone else's perspective, it doesn't help you to recognize his or her emotions better. These are all meets, nonsensical meets and yet these are exactly the packages that the packages are offered to you by online self-styled experts and coaches. This is exactly what they're telling you. Stick together, share your experiences, vent, tell each other things, you know? Sick company of other victims. These are absolutely catastrophically wrong advices. If your relationships end up the same catastrophic way all the time, time and again, you most likely need to work on three issues. Number one, anticipated hurt. Your certainty that everyone is going to hurt you sooner or later. It's a persecutory delusion. It's a kind of the acquired paranoia. Number two, if you have constant failures in your relationships, you probably interpret every behavior as hurtful.  This is called hypervigilance or hypersensitivity. It's another form of paranoid or persecutory ideation and it's a lack of skin. You have no protection, like in borderline personality disorder. And number three, pre-emptive aggression. I'm going to hurt him before he hurts me. I'm going to dump her before she dumps me. I'm going to cheat on him before he cheats on me. I'm going to do bad things to her before she does bad things to me. These are the only three things you need to work on. Anticipated hurt, interpreting every behavior as hurtful and your own pre-emptive aggression. So I gave you two examples of myths, myths, commonsensical nonsense that are propagated online by literally everyone I know. And they are utterly wrong according to psychological studies. And now let's transition to narcissism. And after narcissism, I'm going to mention yet another eight myths. Another eight beliefs, wrong beliefs, false beliefs, beliefs that run contrary to the best evidence we had gathered in studies, some of them gigantic studies with a million plus people. Many of the things we think we know about psychology, about other people, about the inner world of others, about motivations and intentions and behaviors, many of these things. If not majority of these things, many of them are wrong. They're not wrong. Allow me to correct myself. They are dead wrong.  All of this because you prefer your intuition and commonsense and the intuition of commonsense and commonsense of other victims, coaches who used to be victims, victims who became coaches and self-styled experts who capitalize on your gallability and your vulnerability. You prefer to believe these people.  The truth hurts. The truth is that you had contributed to your abuse as much and very often more than your own abuser. This is something you don't want to hear. You don't want to hear this. Okay. Albert Camus was a how else Jewish author. He was born in 1913 and he died a year before I was born. He probably died a year before I was born in order not to witness my birth and I can't blame him. But he was best known for wonderful, amazing literary works, amazing novels. I recommend The Stranger, The Plague, which is very, very pertinent, very relevant nowadays. The plague describes a Black Death at kind of a bubonic plague in Algiers. He was a philosopher. He was among the fathers of the philosophy of the absurd. So he was closely linked to Jean-Paul Sartoy. And so he was also among the fathers of modern existentialism. And he won the Nobel Prize for Literature in 1957. And here's something about Camus. For Camus, our astonishment at life results from our confrontation with the world that refuses to surrender many. Our astonishment occurs when our need for meaning shatters against the indifference, immovable and absolute of the world. As a result, absurdity is not an autonomous state. It does not exist in the world in itself, but is instead exhaled from the abyss that divides us from a mute world. This world in itself is not reasonable. That is all that can be said, Camus said. But what is absurd is the confrontation of this irrational and wild longing for clarity, whose call echoes in the human heart. The absurd depends as much on men as on the world. For the moment, it is all that links them together. So I quote this wonderful phrase again. There's an irrational and wild longing for clarity in the human heart. You victims of abuse, you want clarity. You want certainty. You want someone to make sense of what had happened to you. But here's the thing. What had happened to you is meaningless. It's senseless. It doesn't carry any coded message. It doesn't imbue your life with a direction or a goal or a meaning. It just happened to you. And you must make sure it never happens again. And to make sure it never happens again, you must find out the truth. As we know it in the science or attempted science of psychology, not the truth. As you hear from others in an echo chamber, others were exactly in your position. They don't know much more than you do. They pretend to know because they want your money. In November 1940 Camus confided to his journal. He wrote in his diary. Understand this he said. We can despair of the meaning of life in general, but not of the particular forms that it takes. We can despair of existence for we have no power over it, but not of history, where the individual can do everything. Important for you victims of abuse. Your history is in your hands. Camus continues. It is individuals who are killing us today. Why should not individuals manage to give us peace? We must simply begin without thinking of such grandiose aims. He could have been discussing narcissism, of course. And this leads me to the question of the first, as I promised in this video, I'm going to be a myth buster. I'm going to bust myths. So the first myth is that one can separate the issue of sexuality and gender from mental health. Like if an autist comes to you, or a narcissist comes to you, or a psychopath comes to see you as a professional. You're not supposed to pay attention to the gender.  It doesn't matter. We keep saying. That's not entirely accurate, as you will see soon. I'm going to discuss a recent study on autism now, which demonstrates conclusively that mental health issues, including mental health issues that I deal with in this channel, have a lot to do.   I said this. Refrigerator mothers is a notion that had been debunked long ago. It was prevalent in the 60s and 70s before we knew better. Autism in all likelihood has very pronounced genetic components and it's probably a brain disorder. I'm very hesitant to say it with certainty, because we do not know what causes autism. I repeat this. We have no idea what causes autism, what is the cause of autism, what leads to autism. The etiology of autism, we are still studying this and we don't know. We know for sure what does not lead to autism. For example, vaccines. The intellectually challenged anti-vaxxers who claim that vaccines lead to autism. Well, it's yet another conspiracy theory, which is a great demonstration that IQ is not distributed evenly. One of the myths that I'm going to debunk shortly. In August this year in the prestigious academic journal Nature Communications, a mega study of autism had been published. The study showed that there is a strong link between gender identity, autism, ADHD and other mental health disorders. It showed that people who do not identify with the sex that they were assigned at birth are three to six times as likely to be autistic.     Gender diverse people report autistic traits and suspect that they have undiagnosed autism. Gender diverse is transgender, non-binary, gender queer, people who have what used to be called gender dysphoria. People who have the equipment of a male but they feel like a woman or the equipment of a female and they feel like a man. And then they do something about it or they don't do something about it. But at any rate there's a discrepancy between their biological, physiological equipment and their gender identity and these people are called gender diverse. And they amazingly, amazingly tend to develop autism much more than other people. And the reverse is also true. Autistic people are more likely than neuro-typical people to be gender diverse. Gender diverse people are more likely to have autism. It seems to be a very powerful connection. And that's not the only connection because we found connections between autism and schizophrenia, psychosis. Between autism, a very strong connection between autism and depression.  It harks back, this thinking goes back to Melanie Klein. And there's also a strong connection between autism and attention deficit hyperactivity disorder, ADHD. Many of these co-occur with autism. Bizarrely, the previous edition of the Diagnostic and Statistical Manual did not allow to diagnose autism with anything else essentially. But today with the new edition, edition 5, we can and we do. Gender diverse people have higher rates of all these conditions, schizophrenia, depression, ADHD, autism, certain personality disorders. And the highest association was with depression and estimated 30 to 80% of children with autism, 30 to 80% also have ADHD. And 20 to 50% of children with ADHD also have autism. First born children of women with ADHD face a six-fold risk, six times the risk of also having ADHD and double the risk of having autism compared to the general population. It's another study from 2014. So the recent study was conducted on 640,000 people. Good enough for you. And it involved the television documentary, British television documentary in 2017 about autism. The guy who managed all this or handled all this was Simon Baron Cohen, his professor of developmental psychopathology at the University of Cambridge. And one of the preeminent voices and most original voices on autism. Gender diverse people also report on average more traits associated with autism, as I said, sensory difficulties, pattern recognition skills, and most crucially, lower rates of empathy. They utterly, I mean, they read utterly wrongly. Another person's emotional state. Let's get it straight. Autism, ADHD, six other mental health conditions. They're all linked to a massive reduction in empathy to the point of vanishing. But this is exactly the state of victims of narcissistic abuse, people with CPTSD. They also have severely diminished empathy. To the point that technically we can diagnose many victims with narcissism or even psychopathy.  You see, it's all interconnected. It's not so clear-cut empath, narcissistic. It's nonsense. The human mind is so multifaceted, so kaleidoscopic, so amazing, so malleable, so neuroplastic.  You can't say, I'm the victim, he's the abuser and a story. It's not true. He did something to your empathy, and you did something to his empathy. You do something to other victims when you interact with them in your state of mind. You reduce their empathy. You create an empathy-free environment, actually, we discovered. Groups of people who had a common negative experience in such groups, empathy is much lower. You don't have to believe me. Go to any forum of self-styled empaths. I mean, they put to shame forums of narcissists and psychopaths. The nastiness, the lack of empathy, the brutishness, the cruelty and the sadism are unbridled and amazing, amazing levels. Now, the next myth. There is a belief that attention deficits and ADHD, more specifically, they are forms of dissociation. People say, well, abused children, for example, dissociate. They want to forget the abuse. They want to repress the trauma. So they forget all kinds of things. They have a discontinuous existence. And of course, I say the same and I have many videos dedicated to the connections between early childhood abuse, trauma, post-traumatic conditions, among which I number narcissistic personality disorder and borderline personality disorder. I think they're all interlinked. However, dissociation does not cause attention deficit. It causes an improvement in attention. People who dissociate are much more attentive. And so in my work, I speculate that abused children failed to develop object constancy. Mother was not there for them. Or mother was very frightening.  Whatever the reason may be, the child did not feel safe enough. The mother was not a safe base. She was a dead mother. So the child could not develop object constancy. Because he couldn't develop object constancy, he could not pay attention to a single object or another person. He had no training in paying attention to other people. He had no focus of attention, no praxis. But dissociation actually enhances attention. It also enhances multitasking capacity. Think about it.   You're playing at the corner. You have to divide your attention if you have an abusive mother.  You must have divided attention. One part of your attention will be focused on playing the game, the toy, watching the cartoon on television. And the other part of your attention would be a mummy. Is mummy coming? Is she angry? Is she depressed? Is she going to beat me up? Is she going to break my toys, tear my books, etc.? You must divide your attention.  There's a test called the Stroop-Colour Word Test. Stroop sounds like stormtroopers, like something from the Holocaust. The Stroop-Colour Word Test, SCWT, it's a test we administer to people to see how attentive they are, how long they can maintain attention. And we found using the Stroop Test that high dissociators, people with high levels of dissociation actually, they are faster. They complete the test better. The test is very clever. It shows you a color and there's a word describing the color, but the word isn't another color. So they would show you the color blue and then there's a word blue, but the world is painted in green. So there's a discrepancy between the color and the word that describes the color. Because the word that describes the color is colored differently. So people with high dissociation scored much better on this test. There's a study by Freud, F-R-E-Y-D, Marto Velo, Alvarado, Hayes and Christman. They sound like a gang in the Wild West, cattle wrestlers. So this Gang of Five in 1998 discovered that there is no slowing of overall reaction time for people with high dissociation. There is a bit of something called Stroop interference. I'm not going into it, but generally there's no slowing down of reaction time. The Prince and Freud, 1999, they discovered that high dissociators are worse in selective attention tasks, but much better in divided attention tasks, multi-tasking. Becker-Blease, Freud and Pierce in 2004 discovered that abuse leads to a distinctive attention style. When a child is abused, he develops a special attention style, the one that I mentioned a few minutes ago, but not ADHD. No ADHD for abused children with dissociation. The writer R-U-Y-T-E-R at Allies discovered that high dissociators are advantaged in both selective and divided attention. And finally, Dohey, Irwin and Middleton discovered that high dissociators are a bit slower, but there's no attention deficit. So, you see, it's an example of an intuition. Nine out of ten people will tell you, well, if I constantly forget things, if I have to shut off things, if I have to repress things, if I have to ignore things in my environment, probably it will affect my attention badly. I will develop attention deficits. My attention span will be affected. Wrong. Not true. Myth. Let's go to the next myth, which has to do with me personally. Therefore, my favorite. The myth is that IQ is distributed normally. You also saw this famous graph. This is called a Gaussian distribution or a normal distribution. Gauss was a mathematician in the 19th century, and he discovered this distribution. Distribution simply means you have many, many numbers, and you arrange them on a graph. How's the graph going to look? And a normal distribution is low numbers would be on a tail, high numbers would be on another tail, and the vast majority of numbers would be in the middle. So, like the middle would be very tall, and the left side and the right side, you would have a tail. So if someone has an IQ of 50, probably he's not watching this channel, but other channels, so if someone has an IQ of 50, he would be on this tail. Most people don't have an IQ of 50, so he will never be in the middle, he will be on the tail. And if someone has an IQ of 190, hint hint, he will also be on the tail. Most people, thank God, don't have an IQ of 190. So the majority of people, the big number of people, will be in the middle, so the middle will look like this. Got it? Got it. That's called the normal distribution. Here's the clinch, here's the myth. IQ is not distributed normally. So why if you go online and you read articles, and you read books about IQ, and why everyone says IQ is distributed normally? Like 67% of the population have IQ between this and this, 39% of this. Why do we have this shape? We have this shape because the test results are tweaked. Yes, we fake them. This faking has a very nice name, because in Akadem, when we commit a crime, or when we do something really, really unethical, we give it a name. And the name is very highfalutin, and because the name is highfalutin, it makes us feel good with ourselves, because everyone outside our arcane club. So what we do with IQ test results, we fake them, we tweak them, we change them, we make them fit. Listen well, we make them fit. The predetermined shape, the normal distribution. And this mathematical technique is called standardization. We standardize the test to fit a Gaussian distribution.  If we were not to standardize the test results, we would have had two huge tails and a very, very small bump in the middle, which is reminiscent of the sexual performance of some narcissists I know. So we would have a huge tail here, a huge tail here. In other words, many more people have much higher IQ than we give them credit for. I have 190 IQ. This has been repeatedly established in tests over 20 years, three types of tests. So it's probably true. According to the Gaussian distribution, there are only eight other people in the world with this IQ. It's so extremely rare. But of course it's nonsense. It's nonsense because it's not the result of the IQ test. It's not reality. It's the outcome of the standardization of the testing results. We convert them to normal distribution. And we change the difficulty of the question. And we use the raw test scores as output scores. And we feed them into a normal distribution. We use something called Z-test. And we have a null hypothesis for those of you who are into mathematics. So we have a null hypothesis, and we have standard deviations within a Z-test. And then we apply the Z-test. And we flatten the curve in effect. Actually, we don't flatten the curve. We curve the flat. So we curve the flatland. So actually, what I'm trying to say, most people have much higher IQs than we think. And of course, much lower IQs than we think. Majority of people have much lower IQs than we think. Just look around you. And much higher IQs than we think. I took a raw dump of IQ test results, admittedly from the 1940s and 50s. That doesn't matter. This was Stanford-Binetes, which is no longer used, and is very prejudiced, very problematic. But this is all I had. I took these results, and I denormalized them. I made a renormalization, but without standardization, without assumptions concerning standard deviations. And it seems that about 10% to 15% of the population, if we were not faking the results, 10% to 15% of the population have an IQ higher than 124. At least 10% to 15%. I mean, there would have been an added 10% to 15%. They would have moved. They would have shifted from the middle to this state. Similarly, of course, something like 30% would have shifted to the left. Now, many people are not going to like this result. And perhaps this is the reason that we are still falsifying IQ tests, because it would have been tremendously to use a Trumpian word. It would have been tremendously politically incorrect had we looked the numbers in the face. Why? Because a typical chimpanzee has 50 to 60 IQ. An adult chimpanzee has the IQ of a five-year-old. And not pleasant to say, so does one-third of the human population. If we don't play with the test results, if we don't fake them via standardization, Z-testing, normalization, standard deviation, and many other statistical games we play, I think there's a lot of political correctness. Fake science, pseudoscience. That's why IQ tests are highly unreliable. They reflect absolutely statistical assumptions that adhere to social, societal mores and values, which are very period-specific. They do not reflect reality. People with 190 IQ are much more common. There are way more than eight people with 190 IQ. If you are interested in the number, about a thousand. And people with 60 and 50 IQ, the exact equivalent of a chimpanzee, many, many, many more than you know. Now, who wants to hear that? Next myth, positive psychology works.  Fake a smile, cover up your emotions. Well, research is dead set against it. I'm referring you to an article titled, Negative Emotions, Key to Well-Being, Negative Emotions, Key to Well-Being, published in Scientific American. It shows that if you suppress your emotions, you raise your stress level, and it causes you to dwell on the negative emotions for much longer. If you accept your negative emotions and express them at the moment, make peace with them, embrace them, accept them as part of yourself, they go away, they go away fast.   Wonderful advice, unfortunately, totally wrong. In 2015, a group of researchers replicated Amy Cuddy's study. They used five times as many participants. They couldn't find a hint of a clue, of a shadow, of an indication that her results are real, not only valid but real. There is very strong suspicion that she and her colleagues either made a massive error in interpreting the results or much worse, they faked the results, they manipulated the data to yield a statistically significant result. Peterson has, must, rewrite the first rule because it's based on faulty signs, probably, probably, fake and false results. The next myth, opposites attract. It's a myth that when you're dating you're likely to be attracted to people who are very different from you. I can't tell you. I can begin to tell you what mountain ranges and continents of research there are to dispute this. It's completely, utterly, unmitigatedly untrue. Not a single word is true. I refer you to psychologicalscience.org. They have a section called myths where they summarize research for this particular myth. What was it is true? We are drawn to potential partners who are similar to us. Similarity also guarantees the longevity of the relationship. The success of the relationship depends crucially on how similar you are. The more similar you are, the more things you agree on, the more communication preferences you share, the more hobbies, the more avocations, the more common activities, the more you bring up the children similarly, the more you agree on money, etc. The more similar you are, the longer your relationship. This is one of these myths that had destroyed 50% of American marriages. These people were looking for opposites. He completes me. We are two parts of one. He is my better half. He is my different half. This is nonsense. You must look for someone who is your echo, who is your mirror, who is your reflection, who is you with other genitalia in case you are heterosexual. There is another myth like this. Cohabitation before marriage, if you share premises, if you live together before marriage, your marriage will last longer. The more you get to know someone before you get married, the more your marriage is guaranteed to last. Wrong. Dead wrong. Cohabitation is totally correlated with divorce. The longer you have known your partner, the longer you have known your partner, the longer you have dated your partner and especially the longer you have cohabited with your partner. Before marriage, the more it predicts your divorce. Higher divorce rates are intimately correlated with lack of intimacy before marriage. The less you know your partner, the less time you spend with him and if you've never lived with him, never shared living quarters with him, then your marriage will succeed. Marriage is founded on matchmaking lasts much longer and far more stable than love-based unions. Most of what we think we know about dating relationships, marriages is wrong. Our ancestors forefathers great-great-great-great-grandfathers like me, we knew better. We knew to tell you don't date. Don't live with him.  Let us find for you the right partner. These are all excellent advices if, if your main concern is to have a long, productive relationship, marriage, for life. If your concern is just your fondness, which is legitimate, then these factors are not relevant. But if you're serious about your life and about your partner and about your relationship, you're going the wrong way. Next myth. The more people you put together, the more creative they become. Brainstorming is guaranteed for creativity and creative solutions after months or, as I love to say, bolder dash and bladder dash. According to the American Institute of Graphic Arts and a million other research institutions, if you brainstorm in groups, you are less creative and the group is less creative and the number of solutions and the quality of solutions much lower. This is because of three reasons. One is called anchoring. Anchoring is a cognitive bias. When we begin to consider other options, we suddenly realize that we have a solution of our own by contrast. When we consider other people's solutions and ideas, we realize that we have our own solutions and ideas and we get anchored like the anchor of a ship. And we get stuck.    Groups are very bad places to hatch creative way forward. The second effect is group think. Group think simply means that pure pressure, intentional peer pressure, body language peer pressure, peer pressure mediated via body language. Peer pressure that is circumstantial. Something happens outside the group that affects all the members of the group simultaneously. Hatcheries cause members of the group to think the same way. And when everyone begins to think the same way and they verbalize it you are very afraid to think differently. It prevents unique ideas from being heard or spoken aloud. There is pressure on you. Pressure on you to conform to join in to fit in not to rock the boat. And the third reason that groups are very bad places hatcheries or wombs is pressure. In groups you feel that you are being tested that you are being observed. This is precisely the reason why it is an exceedingly bad idea to introduce cameras into courtrooms. You feel that you have to come up with a good idea on the spot. And everyone around you want to do the same. They want to impress. It becomes about impressing rather than communicating. It becomes totally grandiose and narcissistic. It puts incredible pressure on some people and then they can think. It stress levels and anxiety levels in groups are much higher by the way than alone. Next myth left brain, right brain no such thing, of course.  Every part of the brain can replicate every other part of the brain.  Usually without too much of a problem. We have had numerous such cases. In wars, accidents, babies born with half brain most extreme case had something like 10% of its brain.  Everything happens in multiple locations. There are copies of copies of functions copies of content copies of memories a copy of your entire identity. There is no dominant side. Totally false. I refer you to lifeScience.com There is an article there left brain, right brain myth where they summarize the research. Everyone uses both sides of the brains equally and equal time. And the only thing that is true the only thing that is true is that certain abilities and capacities for example speech they are more located in one hemisphere for example speech is more located in speech processing, language is more located in the left side of the brain. Visual processing which also is linked to artistic and plastic arts creative efforts that's more on the right side. But here's the glitch in the each and the niche they communicate all the time there's like a zillion connections between the parts and they hand over functions all the time. So while the maybe the language center Broca there's an area called Broca which is central but many of the language functions are in outside Broca's area in the left hemisphere but when you talk huge amount of traffic and communication with the right side of the brain and many language functions and speech functions are temporarily transferred to the right side for example if you have to talk about some visual about some image or photo you can't there's no such thing language is in the left language it's like the cockpit in an airplane you can't say the cockpit is this and the airplane is this they're intricately intimately connected they're one and the same the brain is a single unitary entity everything works on everything all the time all functions are carried on both sides all the time a million pathways like under the senate in the United States they have these underground enormous kilometer long corridors it's the same Capitol Hill ostensibly congress in the senate they're all connected it's only one thing midlife crisis next myth in reality there's no such thing in a study published in a series of studies published and summarized by NPR on the 14th of March 2016 go to the archive of NPR you will see a great summary and it's titled forget the red sports car so to cut the long story short our studies showed that only about 10% of the population suffer a crisis in midlife this crisis is connected to specific events like parents dying or losing your job or divorcing or your wife cheating or something it's not a crisis because you have reached a milestone or a certain age it's a crisis because something happened and then if you divide life into decades every decade has crisis ask any adolescent ask any child ask anyone 20 years old who's dating every decade in life and Gayo Shi wrote the book passages and the book new passages to say exactly this that every decade has its own set of crisis so isolating a specific decade is a crisis it's nonsense also because the attributes of the midlife crisis are wrong, not true we couldn't find them in studies people who are going through their 50s and 40s and 50s they are supposed for example to be much more afraid of death or they are supposed to redirect their view instead of forward and backward like they are reviewing their lives none of this we couldn't find a hint or a trace of any of these fables and confabulations they are wrong, they are not true actually most of the crisis in the 40s and 50s most of the crisis multiple have to do with the reasons I mentioned we all undergo challenges and we all do the stereotypical midlife crisis things but it's not a coherent or cohesive syndrome set of cognitions and emotions the next myth is personality and IQ are stable in adulthood that's absolutely untrue even personality disorders change personality disorders are supposed to be rigid structures that's the definition of the diagnostic the statistical manual rigid structures of personality but they are not rigid 50% of all people diagnosed with borderline personality disorder lose their disorder after age 45 that can no longer be diagnosed for instance most of the antisocial behaviors of psychopaths disappear after age 40 antisocial behavior ameliorates in psychopaths in starting with the fifth decade of life the only structure that is totally rigid almost doesn't change ever is narcissists narcissistic personality disorder it's the only case I am aware of where there is no discernable change between age 20 and age 60 the psychodynamic landscape is identical the reason is the narcissist does not exist there's no personality, no self it's a piece of fiction it's a story a piece, it never changes and like gun with the wind, the movie it never changes a work of art is forever the Sistine Chapel the Last Supper, Mona Lisa they are stuck, they never change so narcissistic personality disorder is a piece of fiction it's a work of art it's a literary creation it's a piece of literature, it's a novel of course it doesn't change in a study made published in July, in the July-August 2003 American Psychiatric Association newsletter, page 14 they took personality data from 133,000 people good enough for you as a sample, I should hope and they found that personality changes all the time over the entire life span people for example become more agreeable more willing to cooperate with others as they age, by the way another myth the myth of the traculent irritable, irascible old men actually old men are far more agreeable than young men, and far more cooperative number two women become less neurotic, less emotionally sensitive and emotionally dysregulate as they age, which would explain why BPD borderline actually disappears number four men and women become less open less eager and willing to try new experiences as they age, all the people are far more conservative and number four conscientiousness work ethic, detailed orientation increases with age the best workers are old people examples of how personality changes these are fundamental things these are factors in personality and they change and above all the myth the mother of old myths to paraphrase my favorite classmates Saddam Hussein 10% we use only 10% of our brain capacity this myth began in the late 19th century late, yeah 19th century a group of wannabe psychologists, because psychology was a proto proto wannabe science a group of researchers compared the learning abilities and accomplishments of a child prodigy to the average person and they found that child prodigies are much more intellectually stimulated than the average bloke which I don't know why they buy that to make the experience, I mean a child prodigy is a prodigy because she is much more intellectually stimulated, yeah it's like saying that they discovered that both men and women breathe air anyhow this amazing earth shattering discovery was generalized and expanded in the 1900s when other researchers who did not understand how the brain functions we still don't understand how the brain functions and don't let anyone tell you otherwise we have no idea no blue idea how the brain functions or any part of the brain or any neuron or neurotransmitters or anything whatsoever, we are at the stage of cataloging we are cataloging we are cataloging pathways we are cataloging biochemistry, biochemicals we are just cataloging, we know nothing about the brain and at that time they knew even less, a lot less so these psychologists researchers who knew nothing about the brain but were sufficiently grandiose hubristic and arrogant to say that they did they noticed that many different parts of people's brains appeared inactive so they said, ah well the difference between prodigies and regular people is that prodigies are using more of the brain and regular people are using less of the brain and they gave the number 10% by the way, totally arbitrary no foundation to this number they just gave the number 10% well, sorry to tell you, it's utterly wrong modern research a bit more modern, like 100 years later and I refer you to the article do people use only 10% of their brains published in scientific America modern research shows that throughout the day we use, hold your breath, 100% of what you have now it's very true that the majority of you don't have much but whatever it is you have you use, 100% throughout the course of the day notice, at any given moment you may use 10% or 20 or 2 but when you look at the entirety of the day, 24 hours use every corner, nook and cranny, every syllable neuron, every synapse, every axon everything, 100% everything is used, every part every function so while the sections that control essential processes breathing, autonomous functions, senses these sections are active, non-stop other parts I don't know, parts that are responsible for language fear response fear response is what you have when you're watching my videos problem solving, all these are activated only when necessary so they're not always active, normally why would they be always active it's like your apartment, you know you get up in the morning, you go to the toilet at that moment only 2% of your apartment is active the toilet, I don't know what you're doing there I don't want to know, please don't go into details in the comment section but then you exit the toilet, you go to the kitchen, you make coffee oh, kitchen is a bit bigger that's 5% of your apartment then you go throughout your apartment throughout the day, you circulate every corner of your apartment so 100% of your apartment is active and depends on your lifestyle of course, in some people most parts will be more active than others but all parts are active in all people we make full use of all the abilities in our brains those of us who have them so this was today's video and I hope you had great fun and I promise to pass on the message to Campbell and to Kernberg that they have no idea what is narcissism and they should really learn from coaches online and others and it's never too late to start I mean, Kernberg in his 80s, 90s he's still young it's never too late to start and I'll put him in touch with some of the self-styled experts there I'm sure they will put him on the straight and narrow they will fix his thinking and Campbell should stop with these idiotic experiments because he got narcissism completely wrong says the woman who wrote to me bloody hell what am I talking to ok, kiddos and kidettes go drink something, go to the toilet relieve yourselves and I know I created a lot of negative emotionality do not punch a punching bag punch me next time you see me in a seminar after the pandemic BC before corona AD after distancing and in between the BC and the AD yet another Jew not Jesus this time Saint Wagner, much better looking with much fewer holes where it comes


Personal Finance PowerPoint Presentation Understanding Interest Rates Inflation and Bonds Prepare to get financially fit by practicing personal finance. Most of this information comes from Investopedia Understanding Interest Rates Inflation and Bonds which you can find online. Take a look at the references. Resources continue your research from there. This by Barry Nelson updated March 17, 2022. In prior presentations, we've been taking a look at investment goals, investment strategies, investment tools, keeping them in mind. We're now considering understanding interest rates, inflation and bonds. Owning a bond is essentially like possessing a stream of future cash payments. So this is a common type of tactic when we're trying to be comparing different types of investments. We can think of them as a stream of future payments. Bonds lend themselves quite well to this type of analysis because we have a fixed kind of return. So we can think about that return in terms of future cash flows for things like the interest payments, possibly semi-annually, and then the maturity of the bond where we get the face amount of the bond. We might then try to present value that using our present value calculations and use that to value different types of investments due to different comparisons between them. We can use a similar method with other kinds of investments as well, but with things like equities that gets much more complicated because the idea of what the cash flow streams in the future will be for equities is harder to determine because you don't have that kind of fixed rate that's basically laid down at the front of something like a bond. So those cash payments are usually made in the form of periodic interest payments and the return of principal when the bond matures. So in the absence of credit risk, the risk of default. So note it's not quite as easy of course as just figuring out what the present value of future interest payments will be. For example, if we were to compare one bond, one investment to another because we also have to take into consideration risk. And with bonds you've got the risk that the person issuing the bond defaults doesn't pay the interest and so on. Some people less risky than others such as government bonds. So the value of that stream of future cash payments is a function of the required return based on your inflation expectation. So this article breaks down bond pricing defines the term bond yield and demonstrates how inflation expectations and interest rates determine the value of a bond. Measures of risk. There are two primary risks that must be assessed when investing in bonds. Interest rate risk and credit risk. Though our focus is on how interest rates affect bond pricing, otherwise known as interest rate risk. A bond investor must also be aware of credit risk. So interest rate risk is the risk of changes in the bond's price due to changes in prevailing interest rates. So we have changes. You can think of the interplay between like market rates and the rate basically on the bond. When you're investing say in a bond, you're kind of fixing the interest rate that you're getting a return because you're having a fixed return type of investment, which can be good. But then when you think about the market rates, if the market rates are going up in relation to the rate that we've locked in then if we have the money, we can basically invest in other types of investments at that point, possibly getting a higher rate of return. If market rates in essence go down and we've locked in our rate of return, then that could be a good scenario. So changes in short term versus long term interest rates can affect various bonds in different ways, which we'll discuss below. Credit risk meanwhile is the risk that the issuer of the bond will not make scheduled interest or principal payments. So hopefully when we're comparing bonds, we're comparing bonds that basically oftentimes people are comparing bonds that have high credit worthy people that they would be purchasing the bonds from such as government bonds or large corporate bonds for example. But if you had junk bonds for example or even a large company could go bankrupt or something like that and default basically on the payments for the bond, which is more risk there, government bonds typically being less risky in that sense. So the probability of a negative credit event or default affected bonds price, the higher the risk of a negative credit event occurring, the higher the interest rate investors will demand in exchange for assuming that risk. So clearly smaller companies typically will have to be paying higher rates in order to accompany or account for the fact that they're more likely to go bankrupt than a large company or the government. So bonds issued by the U.S. Department of the Treasury to fund the operations of the United States government are known as U.S. Treasury bonds, depending on the time until maturity. They are called bills, notes or bonds. We talked about them in the past. Investors consider U.S. Treasury bonds to be free of default risk. Again, that seems overly optimistic to me, but the idea would be that the fact, because I think there's risk involved in anything, but the idea would be the fact that if the United States government defaulted on their bond risk, that would be a very catastrophic situation because they have the power to tax and in essence print money. So you would think if they're defaulting, we'd be in trouble. So that's very low risk in that event because that shouldn't happen. In other words, investors believe that there is no chance that the U.S. government will default on interest and principal payments on the bonds at issues. Again, I would never say like zero, but it's as close to zero that we can basically get when we're investing in bonds. For the remainder of this article, we will use U.S. Treasury bonds in our examples, thereby eliminating credit risk from the discussion. So we're trying to say we're not going to be focused on the credit risk, but rather on the inflation risk. So it's calculating a bond's yield and price to understand how interest rates affect a bond's price. You must understand the concept of yield. So while there are several different types of yield calculations, for the purpose of this article, we will use the yield to maturity, the YTM calculation. A bond's YTM yield to maturity is simply the discount rate that can be used to make the present value of all the bond's cash flows equal to its price. So now we're going to think about the bonds as a stream of future cash flows and try to use present value calculations to help us out with our comparisons. So in other words, a bond's price is the sum of the present value of each cash flow wherein the present value of each cash flow is calculated using the same discount factor. So we can think about what is going to be the cash flows in the future. So if you've got like semi-annual payments, you can say into the future for however many years, 10 years or whatever, plus the maturity at the end. We can think about those cash flows, try to use our discounting features to basically bring them to like a present value kind of calculation to help determine what is the current value of those future cash flows. So this discount factor is the yield and so we're thinking about the yield being that rate that we would present value those future cash streams at which would make that stream of payment basically zero. That's going to be the yield. Or we can think about it as the rate that would be necessary to discount all future payments. That would be the stream of payments for all the interest payments and then the end payment at maturity for the face amount to be equal to the price. That would give us the YTM. So when a bond yield rises by definition, its price falls and when a bond yield falls by definition, its price rises. So these are the tools that we're going to use basically to value the price of the bond. So a bond's a relative yield. The maturity or term of a bond largely affects its yield. To understand this statement, you must understand what is known as the yield curve. The yield curve represents the YTM of a class of bonds, in this case US Treasury bonds. So in most interest rates environments, the longer the term to maturity, the higher the yield will be. This makes intuitive sense because the longer the period of time before cash flow is received, the greater the chance is that the required discount rate or yield will move higher. Inflation expectations determine the investor's yield requirement. Inflation is a bond's worst enemy. So obviously inflation is kind of going to increase basically kind of like market rates. So if you've locked in the rate to a bond and you have like a long term rate on the bond for that fixed income as interest goes up, then if you had the money, then you might be able to invest in similar kind of bonds now at the higher rate. So the fact that you're locked in could be bad for bonds that you've already purchased. So inflation arose the purchasing power of a bond's future cash flows. Typically, bonds are fixed rate investments. So that means you're going to have a fixed kind of return on them that's already determined, which can be great. But again, if that fixed rate starts to look bad or lower than the current market rate due to something like inflation, then that's when it doesn't play out to your advantage. If the market rates go down, for example, then it could be good. So if inflation is increasing or rising prices, the return on a bonds reduce in real terms, meaning your real earnings are now lower, given the fact that this purchasing power inflation is taking place, meaning adjusted for inflation. For example, if a bond pays 4% yield and inflation is 3%, the bonds real rate of return is 1%. So you're getting a 3% return. So that's great. So you're getting a return. But really, if the purchasing power of the dollar is going down, so inflation is going up by the 4%, then really, in real terms, you're actually losing money. You're losing purchasing power by the 1%. Again, that might not be terrible compared to the fact that if you compare it to other, when you diversify your portfolio and compare it to stocks, the stocks could straight go down in value if there were a recession. You can lose a lot on the stocks if there's kind of a downturn. So oftentimes you're using bonds as maybe a hedge against the stocks, which could go down dramatically. So in other words, the higher the current rate of inflation, the higher the expected future rates of inflation, the higher the yield will rise across the yield curve as investors will demand a higher yield to compensate for inflation risk. So note that Treasury-inflated protected securities, those are the tips, can be an effective way to offset inflation risk while providing a real rate of return guaranteed by the U.S. government. So we talked about tips a bit because they're supposed to move along with the inflation. So have some adjustments instead of being completely fixed. So as a result, tips can be used to help battle inflation within an investment portfolio. Short-term, long-term interest rates and inflation expectation. Inflation and expectations of future inflation are a function of the dynamics between short-term and long-term interest rates worldwide. Short-term interest rates are administered by nations' central banks. So here, of course, the central banks playing a factor. So anytime you're watching the news on the economy, you're hearing about the central banks a lot. In the United States, the Federal Reserve's Federal Open Market Committee, the FOMC, sets the federal funds rate. Historically, other dollar-denominated short-term interest rates such as the LIBOR, LIBOR or LIBID, LIBID have been highly correlated to the Fed's funds rate, giving the Fed a lot of kind of control or authority in that case. So the FOMC administers the Fed's fund rate to fulfill its dual mandate of promoting economic growth while maintaining price stability. So note that that mandate used to be just basically price stability, meaning don't let inflation get out of control, don't get in a situation of deflation. They then added the dual mandate, the two main things now, which is the other one is being employment. Now note that a lot of times from an economic standpoint, those two things are going kind of in opposite directions. In other words, when you're trying to fix things on terms of the price stability, oftentimes you've got to have short-term pain for the unemployment. So it's kind of an interesting play now because that ties the hands of the Fed in some ways to take care of the one and only original mandate was like, don't get inflation out of control and don't see deflation. So this is not an easy task for the FOMC. There is always debate about the appropriate Fed funds level and the market forms its own opinions on how well the FOMC is doing, of course. You can hear endless debate about it. Central banks do not control long-term interest rates. Market forces supply and demand determine equilibrium pricing for long-term bonds which set long-term interest rates. If the bond market believes that the FOMC has set the Fed funds rate too low, expectations of future inflation increase, which means long-term interest rates increase relative to short-term interest rates, the yield curve steepens. If the market believes that the FOMC has set the Fed funds rate too high, the opposite happens and long-term interest rates decrease relative to short-term interest rates, the yield curve flattens. So the time of bonds cash flow and interest rates, the timing of a bonds cash flow is important. So this includes the bonds term to maturity, meaning how long until the bond matures at the end. So remember, you can think of the bonds as kind of two different cash flows. You're making the initial investment upfront, but then on the return side of things, you typically have a stream of cash flows that's going to be fixed possibly semi-annually, and then at the termination or end of the bond, you should receive basically the face amount of the bond. So if market participants believe that there is higher inflation on the horizon, interest rate and bond yield will rise and prices will decrease to compensate for the loss of the purchasing power of future cash flows. Bonds with the longest cash flow will see their yields rise and prices fall the most. So this should be intuitive if you think about the present value calculation when you change the discount rate used on a stream of future cash flows the longer until cash flow is received, the more its present value is affected. So in other words, if you're thinking that there's going to be interest rates rising into the future and you're looking at these bonds that are going to mature into the future, remember there's a stream of payments. We might do some calculations on this in future presentations to kind of isolate this down a bit more, but the idea being you've got a stream of payments that you're going to be receiving and then you've got that lump sum, which is the face amount that you receive at the end. Now if you're going to get that further out into the future and you think that there's going to be inflation by the time you get that last payment then it's going to be worth less in terms of purchasing power if you think you're in a period of inflation and so therefore you would think the value of the bond would be less than. So that would be decreasing or deteriorating the value of the bond as you consider the inflation going up and the longer term bonds that have that lump sum face amount payment at the end would be the ones that would be more thoroughly or heavily affected. So the bond market has a major of price change relative to interest rate changes. This important bond metric is known as duration. So what's the bottom line? Interest rates bond yield prices and inflation expectations correlate with one another. Movements in the short term interest rates as dictated by the nation's central bank will affect different bonds with different terms to maturity differently. So obviously all the factors within the bond in terms of how long until maturity will be different surely affected with changes to the short term rates depending on the market's expectations of future levels of inflation. So when we're thinking about the prices of the bond people are always doing the speculation trying to figure out what's going to happen in the future with regards to inflation which will have an impact on what they believe the value of the bonds will be. So for example a change in short term interest rates that do not affect long term interest rates will have little effect on long term bonds price and yield. However a change or no change when the market perceives that one is needed in short term interest rates that affect long term interest rates can greatly affect a long term bonds price and yield. So put simply changes in short term interest rates have more of an effect on short term bonds than long term bonds and changes in long term interest rates have an effect on long term bonds but not on short term bonds. The key to understand how a change in interest rates will affect a certain bonds price and yield is to recognize where on the yield curve that bond lies the short end or the long end and to understand the dynamics between short and long term interest rates. So with this knowledge you can use different measures of duration and convexity to become a seasoned bond market investor. So we might dive in to some more of those concepts in the future using some calculations but here's just basically an overview of some of these concepts so you can get a general feel of how these kind of market forces are working how you can basically value the bonds, how you can think about the bonds as a stream of basically cash flows and use discounting present value factors, time value of money factors to help to value bonds and set prices of the bonds. Again we might dive into the calculations on that in future presentations.


Yo, yo, yo welcome back to another video. We are in Dallas, Texas This is modern day muscle free smoke got the free smoke merch. Yo, man. We are in the hotel We're about to go get some food and then go check out this car meat, man All right, cool guys, but yeah, man. Here's the car in the parking lot Hotel right there Yeah, man, we got to go get a couple of things then we'll get on to this meat for boy candy right there What's up to the YouTube man? All right guys, we're gonna get in real quick See what's going on with this Food and then head to the meat. A few minutes later So you got your instrument T2K no more Word Kids are super excited to shout out their social media. Yeah, man. We got a lot. We got lots of youtubers out there, man I hope I Pretty sure I did Apologies You can see And then we got rest free smoke that garage driven right there This wide-body brother nail real real SRT. Let me make sure I get it on the Instagram real underscore SRT y'all one of one One of one the yellow jacket wide-body The one the one joint right here the yellow jacket wide-body right here guys Oh You're certified of the building It's my first time seeing one in person actually I saw some work Ready for the track tomorrow Don't you always be doing some weird shit We got a long-ass round 16 hours That's the finally meet you a person We always chit-chat online That's to me to Jordan. Yeah Monday muscle on YouTube, but I Was like Jesus Christ No, I never done nothing like that before I Was OD I did 14 hours and then my man had to take over I was like, yo, I gotta sleep Yeah, I reclined and I was gone. I was like like that.  I'm like, okay every joke Or everybody here talk about it.  Yeah, cause you know, we had, when you had the slum count, we put those three. Hey, my milk and magnesium, that's fruity. I swear to God, I'm sorry.   I ain't no, I'm about to say wow. I'm gonna say wow. Yo, VA boy in the building.  Either me or him. What's going on bro, what's going on bro? Free smoke man, free smoke in the building. Modern day muscle garage, German fat cat unfortunately will be in Atlanta, but we out here, we conquer and divide him. Yeah man, that's what we're doing bro. Bro, it's good to see you again man across the street. What's good about you? You got it, I'm trying to get it. What's going on bro? Yo, what's going on bro? We should be coming through and throwing this entire bed man, you know what I'm saying? You know what I'm saying? You know what I'm saying? You know what I'm saying? You know what I'm saying? You know what I'm saying? I'll say a nice name to you bro. Nice to meet you too man. Yeah, nice seeing you in person bro. Yo, it's crazy bro. Say TRD by the way guys, if you guys don't know, but um, yo, it's crazy man seeing everybody on YouTube and then actually meeting them in person, man. It's crazy, it's just, it's just, it's just a happy, it's a happy time right now. I'm just like, damn, yo, everybody really is here. Just follow me man. Yeah. So, yeah man. Hey, he saw something. Say what? Three for the mall. Oh yeah. They don't need me. They don't need me. They don't need me on their tracks man. Yeah, we, we're gonna get it on the track. Oh my bad. Oh yeah, yeah, yeah, yeah. We're gonna get it on the track this fall too, man. You know what I'm saying? Yeah, I already know what I'm saying. Stop through nine to twos. Anybody stop, I want to get it. You know, anybody stop, I want to get it. Yeah, so we're staying in our lane. Yeah, yeah, yeah. Yeah, yeah, yeah, yeah, yeah, yeah. Got Nova leaving. We're with the Red Eye. I'm going out. What's going on, bro? I'm going out this way. Yo, yeah. Try the one out here like this. Yeah, yo. Yo, I turned around and I was like, okay, I'm a kid. I know I'm a little... Yeah, no, no, no. I heard the voice and I was like, yeah. Yo, bro. Just so y'all know, bro, I'm a kid in the building, y'all. I already know, man. Yo. Dude, man, show some love, man. Yo. Shout it out, man. Savage 392. All out of game. We out here with the game. Free smoke, free smoke. Man, y'all go ahead and hit that line, man. And then come back and do something. Great. One, two, three. Something. Yeah, man. Great. All out of that right now.  You had another 16 hours like a savage, bro. Savage, bro. Savagery. Hey, we all trying to get with the kids, you know. And, man, that's it, that's it, that's it. That's it real, now. Yo, that's it. That's it ain't for the week, baby. It's me, y'all, in the passenger seat. Try to get it up. I'm all in the passenger seat. Hey, man, we got to go, you see. Yo. We got a clip on the GoPro, being like, not enough, but back on it. Like, we back on it. Yo, at the $14 mark, I had to switch. It was over. Now, bro, I had to take a nap, bro. I was like, y'all, I'm about to pass out, bro. Yeah, that's right. Bro, yo. So, we're getting like 15 miles in. He be like, where you at? Yo, bro, yo, bro. Anybody that made the $16, you a different type of dude, bro, because. Nah, the scary part was, when we had stopped to another gas station, y'all was like, yeah, we ain't going to stop for another five hours. We don't have four days. Bro. Five hours. We was trying to get there, y'all. Yeah, yeah, we was trying to get there. Check out the Snow Hawk, y'all. CJ-132s.  Damn, bro. Yo, the camera don't do it, no justice, man. This is something different, bro. Damn. Smashing, bro. Smashing, bro. They call it the Snow Hawk. He did his thing. Look at the interior. It's all white. He did his thing. What's going on? I can't believe you came down. Of course. You know who this is, don't you? A wolf. Where's Mark? What's going on, man? He's with somebody. What's going on, bro? Yo. Bro, we just watched y'all. Yeah? Yeah, y'all put us on Nova. I was like, I was so glad to get a picture. Oh, yeah, yeah, yeah. Yo, you want to shop on your social media or anything? Jamie Sander's on YouTube. Jamie Sander's on Facebook. Well, Instagram and something totally different. I don't too much deal with Instagram. Yo, no problem. But yo, I appreciate you watching Free Smoke. Greatly appreciate that. But yo, y'all make sure y'all go support this guy, too, on his social media platform as well, man. But yo, man, yeah, of course we came. I'm tired, but we came. 16 hours, you know? Something wrong with my notifications, because when y'all hit, it don't never hit there. They'll be like, y'all be already on. It have, um, I know sometimes if it's a premiere or something like that, you have to set the reminder. It's weird like that. You ever tried that? You ever seen it on? Or then when you actually go look at it, there's like a little thing to the left that says set the reminder. You'll try that. That might help. But I don't know. This is YouTube. Did you see, uh, Hampton? Oh, yeah, yeah, yeah. We said, what's up to him, man? We had like a whole segment over there. Well, when he got on you on it there, it, uh... Yeah, Jordan. Well, he was, I say, damn. He got, he got you, yo. I was like...  You see, but you be the top one. Yeah, yeah, yeah. Because you know what it is? I'm letting, I'm letting them talk and I'm trying to like, I'm trying to make sure I can get in my time, but then the problem is, is that once I try to get in, there's like a delay on stream yard. So by the time I'm ready to talk, then I'll start talking again.  I'll just stay, I'll just stay quiet again.  I'm like, thank you, thank you. Just see the word. Y'all better know who this is, man. This is Fly By G Money, man. What's up, y'all? This is Fly By G Money, where we customize whatever we drive on my channel, you know what I'm saying? Word. If you bought it, you gonna keep it. You gonna keep it for a while. Might as well make it your own, you know what I'm saying? I agree with that. Yes, sir. I agree with that. Always customize anything you have, man. Yes, sir. That's what makes it yours, bro. Exactly, exactly, man. Always can level up.  Whatever you got, you driving it and you like it because you picked it out.  Yeah, exactly. Exactly, bro. But yo, bro, what's good, bro? Yo, it's awesome meeting you in person, man. Yo, man, nice to meet you, too, as well. Yo, bro, it's, yo. So I was telling, I was telling Pimpin, I was like, yo, it's crazy when you see people on the screen and then, like, you really see them in person.  Like, everybody is, like, really here. Hell, yeah, man. It's bustin', man. Everybody's so cool, man. Yeah, everybody really is cool. I know, man. I ask you what you've been through. Jordan, where's my guy called? This Darryl from Free Smoke. I do my check. Finally, good to meet you on modern-day muscle. Yo, yo, tomorrow is when we giving out the shirts. Make sure you have the event. But yo, it's good to meet you, though. Because I know it's you and our garage drippin'. Yeah, yeah, it's just us. And Fat Count is in Atlanta. Yeah, of course. Of course. I'll just tell it. All right. He lives out here. He's got you, too. Yo, what's going on, bro? Nice to meet you, bro. I'm a live respect. Yo, go ahead and shout out to Channel, man. I appreciate it. You want to shout out yours, too? Not as yet. But soon, A, D, the Caribbean car guy coming soon. Caribbean A, man, for the culture. Salute to Free Smoke Squad for the culture. Word, bro. So, you know, just looking out, seeing the vibe. First time from Florida, Orlando. Hey, look, I did a video with Life at GQ. Jeremy Barrett, like I said, everything. Jeremy Barrett's a real cool dude. Yeah, he's really cool. Yeah. Look, I follow all you guys. That's something all you guys are doing for real. This is going to be... I know you guys are not live on Sunday. I mean, well, pre-recorded. Well, not pre-recorded. Yeah, it'll be a pre-recorded. Yeah, yeah, yeah, yeah, yeah. Yeah, but still, this is going to be one of them clips. Oh, yeah. For the culture. Yo, bro. Hey, good round, Jimmy. I've been waiting. Hey. So, guys, that was good, baby. D and D, man. No, no, no, no, bro. Hey, look, that's right there. What up, what up? What up, what up, what up? Yes, sir. What up, what up? Hey, come shout out. What's going on? Hey, how you doing? What's up, man? I'm not here. We went for the ruckus. Yeah, bro. Just come see. Wow, really? That's our 16 hours like us? Oh, we ain't dry. We got a plane. Yeah, we out here. See, we should have did that. Yeah, I should have did that. Your cars. I see y'all driving back cars, bro. Appreciate it. But, yo, come see either me or garage over tomorrow and we got you. Okay. Yeah, yeah. Yo. Yo. I came out here for y'all. Seriously, we appreciate it. Hey, don't hesitate to hit me up, bro. Now I know. Yeah. Y'all see what I see? That's a drag right there, y'all. Hold on. Let me move out the way, y'all. We'll let the charge of gold. Let me let the charge of gold. Yo. I'm bringing my car. I'll put it up here. Yo. First, first time seeing drag in person, y'all. Damn. Look at drag, y'all. What's going on, man? You doing all right? Yes, sir, man. Yo, you want to show your life for the James family. If you already know how to subscribe and get that post notification, like, share and subscribe and join our journey, man. Me and my wife, man. I love what you're doing, man. I watch out every day. Yo, appreciate it. We drove 16 hours nonstop to be here, bro. 15, bro. Someone asked me how I felt. My reaction was Jesus Christ. Hey. It's just the energy. Yeah, yeah. When you know you got a hustle to go get something, it's like, yo, we wanted to make sure we wanted to be here. Right now, it's me and Garage Driven. Garage Driven is somewhere over there somewhere. I think I have passed the murder. But yeah, man, we appreciate the support and make sure you guys go and follow them too, guys. There you go. See ya. Yo, the car. Oh, he's in Atlanta. He's in Atlanta. Swagpack Check got something this weekend. He went to try and handle some business. We had to conquer in Dubai, bro. Hey, man, you know we got to try and make it happen, man. You know what I'm saying? I told him, though, man.  Nah, we've been here about an hour, right? We've been here about an hour, yeah. Bro. Bro, we've been up since yesterday. We drove in today, 16 hours. Bro, it took us 14 hours. Man, 14 hours. Bro, Jesus Christ. Jesus Christ, bro. We haven't slept yet. Yo, it's one thing to see it on camera, but I was walking around and I was like, yo. Nasty, bro. Wait, wait, wait. He's getting on the track tomorrow. I'm on that. Yeah, I'm on that. Do something for fun, man. That's the song, man. Where y'all staying at? Dallas. We're not too far from the track. Yeah. Yeah, we're like 10 minutes away from the track. Damn. Oh, okay. Yeah, we went and got on the whole time. I was about to say, yeah, that should got to be a sign, bro. Yo, the two phenoms, bro. The two phenoms, bro. The two phenoms. Hey, yo, hold on, yo. Chemistry together is like... Yeah, it's natural, bro. When y'all two on camera together, it's dope. Yeah, because when y'all chillin', they make people feel like they chillin' with y'all, too. Like, you know what I mean? Trust me, I keep doing what y'all do. Yo, we got the two goats. The two goats in the building, y'all. The two youngest goats. Y'all have never seen goats that big yet, though, man. It's camera, man. Well, I'm recording so much as a movie out here, boys. Shout it out, shout it out. I came out from the shots, brought my guy CJ free smoke, you know. First time out of Texas. I've been joinin' so far. Appreciate that, man. And it's workin'. Yo, real quick, I was a little late because I'm recording so damn much there. We got Offroad Owl in the building, y'all.  I wanted to meet you guys in the next video. Yeah, yeah. Yo. Real channel, too, and all that stuff. Yeah, appreciate it. Thank you for the quarterback the little bang down there. Yeah, yeah, yeah. Yo, man, we on it, bro. Like, y'all, everything that has been done so far, we're just like, wow. Like, it's just... They're masterpieces. Everything, bro. They're masterpieces. I can't even keep up with these. I'm gonna drop off this together. I don't even know where I'm going sometimes. Yo, real quick, y'all. It has been a movie of an event. I mean, a movie of an event. I recorded so many people. I don't even know if everybody was sent on camera, bro. That's all I've got. I got to meet some real genuine people, some people that I didn't think I would meet in person. Yo, my name is Jordan. This is Monday Muscle. Make sure you follow Free Smoke and also follow all our respective YouTube channels. You got Garage Driven, Fat Cat and myself and also Free Smoke, man. I'll catch you in the next video.