WEBVTT - The Mark Moss Show Mar 28, 2022 0:00:00.040 --> 0:00:02.759 Hey, everyone, Welcome back to another episode of The Mark 0:00:02.840 --> 0:00:06.040 Moss Show. Coming to you each and every week talking 0:00:06.080 --> 0:00:09.520 to you about talking you through, trying to guide you 0:00:09.560 --> 0:00:11.480 and explain to you what is going on with the 0:00:11.480 --> 0:00:14.960 world through this decentralized revolution that the world is going through. 0:00:15.640 --> 0:00:20.120 Talking about the intersection of politics, finance, and technology changing 0:00:20.200 --> 0:00:22.160 the world as we know it. Of course that's being 0:00:22.239 --> 0:00:26.000 led by bitcoin and cryptocurrencies and all these new technologies 0:00:26.000 --> 0:00:31.360 that are driving this change. And as the world changes, UM, 0:00:31.640 --> 0:00:36.479 volatility happens, right, changes hard. Um usually well, a lot 0:00:36.479 --> 0:00:39.600 of times change is good, but it's not always fun. 0:00:39.640 --> 0:00:41.720 It's not always easy, and that's exactly what we're seeing 0:00:41.720 --> 0:00:45.640 in the world. Um. We're going through massive changes. And 0:00:45.720 --> 0:00:48.360 what that means is that new things are created, which 0:00:48.400 --> 0:00:50.599 is exciting, but it also means old things that were 0:00:50.680 --> 0:00:54.000 used to dies and so you know, it's good for something, 0:00:54.040 --> 0:00:57.360 it's bad for others. Um. It could be extremely good 0:00:57.400 --> 0:01:01.720 for you if you're paying attention, could be extremely good 0:01:01.800 --> 0:01:04.760 for you if you position yourself to take advantage of it. 0:01:04.760 --> 0:01:06.679 Could also be extremely bad for you. If you're not 0:01:06.680 --> 0:01:08.920 paying attention, It could be extremely bad for you. If 0:01:08.959 --> 0:01:11.880 you're part of one of the industries are part of 0:01:11.880 --> 0:01:15.640 the part of the the economy that gets killed off. UM, 0:01:15.640 --> 0:01:18.600 But that's okay. You have time. You can you can 0:01:18.680 --> 0:01:20.319 change I like to say, you're not a tree. You 0:01:20.360 --> 0:01:23.080 can move. You could change careers, you could change companies, 0:01:23.080 --> 0:01:26.520 you could build new products, UM, you can change your investments. 0:01:26.920 --> 0:01:29.120 You can do all these things. But only if you 0:01:29.160 --> 0:01:31.080 have the information right, only if you know what the 0:01:31.120 --> 0:01:33.600 heck is going on, which is why you need to 0:01:33.640 --> 0:01:37.400 be tuned into me each and every week. UM. There's 0:01:37.400 --> 0:01:39.679 a lot of people on the radio, and I appreciate 0:01:39.720 --> 0:01:41.479 you listening to me. There's a lot of people that 0:01:42.040 --> 0:01:44.440 UM can talk about politics, and there's a lot of 0:01:44.440 --> 0:01:48.120 people that can talk about the finance, but in my opinion, 0:01:48.600 --> 0:01:53.080 there's nobody putting it all together into the context of 0:01:53.120 --> 0:01:55.040 what's going on in the world today like I am. 0:01:55.200 --> 0:01:57.360 And so hopefully you joined each and every week. If 0:01:57.360 --> 0:01:59.960 you're not driving poletryphone, real quick, put a calendar. Remind 0:02:00.040 --> 0:02:01.520 do to make sure you tune in each and every 0:02:01.560 --> 0:02:05.240 week on this time, this channel. UM. Try to make 0:02:05.240 --> 0:02:10.239 it the most important, the most profitable, maybe somewhat entertaining 0:02:10.520 --> 0:02:13.160 part of your week teaching every week. So thanks for 0:02:13.160 --> 0:02:17.160 tuning in you listening to the markma Show, and uh man, 0:02:17.680 --> 0:02:20.399 we have a never ending supply of stuff to talk 0:02:20.400 --> 0:02:23.080 about because, as I said, right, the world is changing 0:02:23.240 --> 0:02:26.600 and it's creating. It's an exciting time and there's so 0:02:26.680 --> 0:02:30.280 much to talk about. And of course, what's dominating the 0:02:30.320 --> 0:02:32.679 news over the last several weeks, and it's been dominating 0:02:32.720 --> 0:02:36.600 what I'm talking about. It's dominating every other, um, mainstream 0:02:36.639 --> 0:02:39.280 news and alternative news, whatever you wanna call, it's dominating everything. 0:02:39.320 --> 0:02:42.200 All the headlines is of course the war going on 0:02:42.240 --> 0:02:46.359 with Russia and Ukraine. But what I want to talk 0:02:46.400 --> 0:02:49.440 about isn't the war on the Russia and Ukraine war 0:02:49.600 --> 0:02:53.120 and what's happening with that, Um, what you know, we 0:02:53.160 --> 0:02:54.640 can we can get into that. There's plenty of people 0:02:54.639 --> 0:02:57.639 covering that. I saw a great piece by Tucker Carlson 0:02:57.720 --> 0:03:02.840 this week, UM where he really talked about the politics 0:03:02.880 --> 0:03:06.160 of Ukraine, which I thought was very interesting because it's 0:03:06.200 --> 0:03:10.560 definitely different than what you're typically hearing across mainstream media, 0:03:10.639 --> 0:03:14.160 which is, uh, the whole world now apparently stands with Ukraine. 0:03:15.280 --> 0:03:18.280 Everybody's flying the Ukraine flag and I stand with Ukraine. 0:03:18.320 --> 0:03:21.520 I stand with Ukraine and um, I do you know, 0:03:21.600 --> 0:03:24.760 Mark Most does I mean, I'm not for dictators and 0:03:24.800 --> 0:03:26.960 I'm not for tyranny. I'm not for war, I'm not 0:03:27.040 --> 0:03:29.760 for people dying. I'm not for any of that. UM. 0:03:29.960 --> 0:03:35.960 I would condemn any government leader from invading another country 0:03:36.000 --> 0:03:40.520 and killing people innocently, Like I'm I'm always against that. UM. 0:03:40.560 --> 0:03:42.760 But the piece that Tucker Carlson was talking about was 0:03:42.800 --> 0:03:47.080 that that's fine, and you can have that stance, but 0:03:47.880 --> 0:03:54.840 just understand what Ukraine is. Because Ukraine is not a democracy. 0:03:55.120 --> 0:03:58.040 So if you're saying that we support a democracy and 0:03:58.120 --> 0:04:01.240 Putin and Russia as a dictator, and so we're against 0:04:01.240 --> 0:04:03.840 it because we don't want dictators taken over democracies, well 0:04:03.880 --> 0:04:07.520 that's wrong. And it was It was interesting. He had 0:04:07.560 --> 0:04:09.360 all the receipts, He had all the facts, all the 0:04:09.680 --> 0:04:11.880 all the figures, all the data points to back that up. 0:04:11.880 --> 0:04:13.360 If you're curious about it, go ahead and look it up. 0:04:13.360 --> 0:04:15.440 I'm not gonna dig super deep into that. My point is, 0:04:16.839 --> 0:04:18.359 as I'm talking about at my point is I'm not 0:04:18.360 --> 0:04:20.440 going to talk about that. I mean that that's interesting 0:04:20.440 --> 0:04:21.920 and that's a great piece, but I don't I don't 0:04:21.920 --> 0:04:24.520 really care about that. Again, I want to bring what's 0:04:24.520 --> 0:04:27.080 happening in the world into context, and so we're gonna 0:04:27.080 --> 0:04:29.320 look at it from a much broader lens, because the 0:04:29.360 --> 0:04:34.600 world as we know it is changing. The financial system 0:04:34.680 --> 0:04:37.120 of the world is changing. As a matter of fact, 0:04:37.160 --> 0:04:42.719 the global financial system is going through its fifth change 0:04:42.839 --> 0:04:45.359 in about the last hundred years, about the last century. 0:04:45.880 --> 0:04:51.320 So it's been massive changes to the global financial system. 0:04:51.360 --> 0:04:53.880 And this is the fifth one, really the fourth one 0:04:54.120 --> 0:04:57.640 in less than a hundred years, that has massive, massive 0:04:57.680 --> 0:05:03.440 implications for your every day life. Your money, right, your 0:05:03.480 --> 0:05:05.640 money is at the base of your life. That that 0:05:06.080 --> 0:05:09.240 your money is how you know can you afford to 0:05:09.279 --> 0:05:12.000 eat steak or do you eat slop? I mean, how 0:05:12.120 --> 0:05:14.479 much food can you afford? Can you drive your car? 0:05:14.600 --> 0:05:16.920 Can you go get entertainment, can you take a vacation? 0:05:17.279 --> 0:05:19.240 Do you have to work more hours than you used to? 0:05:19.400 --> 0:05:23.000 I mean everything hinges off of the money. And so 0:05:23.080 --> 0:05:25.560 I want to talk about the rush of Ukraine situation, 0:05:26.000 --> 0:05:29.240 and I'm going to talk about how the entire financial 0:05:29.320 --> 0:05:32.880 system is changing right now. And as I said earlier, um, 0:05:32.920 --> 0:05:35.040 if you understand this and if you navigate it properly, 0:05:35.040 --> 0:05:37.040 then it could be a massive opportunity for you doesn't 0:05:37.080 --> 0:05:40.600 have to be bad. Uncertainty is scary because you don't 0:05:40.640 --> 0:05:43.320 have the future holds. But I have a I have 0:05:43.360 --> 0:05:47.719 a daughter and she's graduating high school and uh, she's 0:05:47.760 --> 0:05:50.960 kind of going through this realization that, oh, shoot, I 0:05:50.960 --> 0:05:53.080 got to become an adult now, and I don't know 0:05:53.080 --> 0:05:56.159 what to do. And uh, I'm scared because my whole 0:05:56.160 --> 0:05:58.160 life has been laid out for me and now I 0:05:58.160 --> 0:06:00.159 got to figure it out. And I told her the 0:06:00.160 --> 0:06:02.800 same thing I'm telling you, which is that I get it. 0:06:02.800 --> 0:06:04.880 It's scary. It's uncertain. You know, your whole life has 0:06:04.880 --> 0:06:06.000 been laid up for you, and now you have to 0:06:06.040 --> 0:06:08.440 go figure it out. And so while that's scary, it's 0:06:08.480 --> 0:06:11.640 also should be exciting because now you can go right 0:06:11.760 --> 0:06:14.480 whatever future you want. And so the same is true 0:06:14.480 --> 0:06:17.280 with us. We're going into this uncertain world, but it 0:06:17.320 --> 0:06:20.280 should be exciting because we get a new world and 0:06:20.400 --> 0:06:22.520 if we navigate it correctly, we could we could benefit 0:06:22.520 --> 0:06:26.800 from that. So, um, I'm talking about well, before I 0:06:26.839 --> 0:06:31.360 frame up the five different times the global financial system 0:06:31.440 --> 0:06:34.120 changed and what that meant for everybody. Before I frame 0:06:34.160 --> 0:06:36.840 that up, I mean, you can see what's happening. As 0:06:36.880 --> 0:06:39.840 the system is changing. Right, So, um, inflation you hear 0:06:39.839 --> 0:06:42.440 about that all the time. Price is going up. Now 0:06:42.640 --> 0:06:45.680 there's a whole another lesson about what inflation is. Inflation 0:06:45.800 --> 0:06:49.320 is not prices going up. Prices going up is the result. 0:06:49.680 --> 0:06:53.360 It's the effect of inflation. Inflation is the increase in 0:06:53.360 --> 0:06:56.160 the money supply. But whatever, we have a massive increases 0:06:56.160 --> 0:06:58.400 in the money supply, which is then leading to massive 0:06:58.640 --> 0:07:01.360 prices increasing across the ward from consumer items, from the 0:07:01.400 --> 0:07:04.560 amount of gas, the gas prices you pay, which I'm 0:07:04.600 --> 0:07:07.120 here in southern California. Down here in Los Angeles, I 0:07:07.160 --> 0:07:10.320 think we might have the highest gas prices in the nation, 0:07:10.800 --> 0:07:12.720 maybe even the world. As a matter of fact, I 0:07:12.720 --> 0:07:15.240 think we're over seven dollars and fifty cents a gallon. 0:07:15.280 --> 0:07:18.840 It's insane. Um, So gas prices going up. Of course, 0:07:18.880 --> 0:07:21.040 when gas prices go up, then everything goes up because 0:07:21.360 --> 0:07:23.440 the food has to be trucked to the store, the 0:07:23.480 --> 0:07:25.000 clothes up to be truck So then we have food 0:07:25.000 --> 0:07:28.320 prices going up like crazy. Um. When we have prices 0:07:28.320 --> 0:07:30.560 going up like crazy, we when we have massive inflation, 0:07:30.560 --> 0:07:33.760 the economy is hurting. Then that has always historically and 0:07:33.840 --> 0:07:35.720 this time is no different. Has led to wars, which 0:07:35.760 --> 0:07:38.760 of course now we're talking about this Russia Ukraine war. UM. 0:07:39.000 --> 0:07:41.760 And then when wars happen, then we have UM and 0:07:41.800 --> 0:07:43.520 the and the inflation is a problem. Then we run 0:07:43.520 --> 0:07:46.920 into other problems. So now we're running into UM food crisis. 0:07:47.160 --> 0:07:50.680 So between Russia and Ukraine, they control thirty percent of 0:07:50.720 --> 0:07:54.320 the global wheat and corn. That's a big problem. UM. 0:07:54.360 --> 0:07:56.880 It's about twelve percent of the world's calories, which is 0:07:56.880 --> 0:07:58.680 a pretty big deal. So now we have these few 0:07:58.760 --> 0:08:00.600 food crisis that are happening all over the world. They 0:08:00.600 --> 0:08:06.160 export UM over the of the of the fertilizer and 0:08:06.160 --> 0:08:08.640 of course what do you need fertilizer for, Oh yeah, 0:08:08.680 --> 0:08:11.720 to grow food. That's the problem. UM. And then we 0:08:11.800 --> 0:08:13.640 have wars, right, wars always break out, And then we 0:08:13.640 --> 0:08:15.520 have the energy crisis, so we have we don't have 0:08:15.640 --> 0:08:19.080 enough energy. Of course, Russia supplies the world, I think 0:08:19.080 --> 0:08:21.640 about eight or nine percent of the world's energy oil 0:08:21.680 --> 0:08:24.400 and gas, and so that's a big problem. We have 0:08:24.480 --> 0:08:27.360 massive energy problems in the United States. Massive not so 0:08:27.440 --> 0:08:29.440 much in the United States, those are self inflicted, especially 0:08:29.480 --> 0:08:33.959 in California. Massive energy problems in China. It's a big problem. UM. 0:08:34.040 --> 0:08:36.120 And so we have that, and then, uh, you know 0:08:36.559 --> 0:08:39.400 the wars, right, the wars always happened. When when that happens, 0:08:39.760 --> 0:08:41.080 and I'm here to tell you that things are about 0:08:41.080 --> 0:08:43.160 to get worse. Don't go away. I got a lot 0:08:43.160 --> 0:08:45.640 more coming about how the financial system changed and what 0:08:45.679 --> 0:08:47.760 you need to do. I'll be right back, all right, 0:08:47.800 --> 0:08:50.280 welcome back. You're listening to the Markma Show. We're talking 0:08:50.320 --> 0:08:53.400 about the way the world is changing right now. It's 0:08:53.400 --> 0:08:56.160 an exciting time. It's a scary time. It's an exciting time. 0:08:56.200 --> 0:08:59.920 We're talking about the decentralized revolution. We're talking about the 0:09:00.040 --> 0:09:03.480 political and the financial system and the technology system all 0:09:03.559 --> 0:09:06.840 being reset, all being rewritten right now. Of course, before 0:09:06.840 --> 0:09:09.120 the break, we were talking about how the world's gone crazy, right, 0:09:09.400 --> 0:09:11.839 prices are going crazy, Gas prices are crazy, Oil is 0:09:11.880 --> 0:09:15.040 going crazy, energy crisis and food crisis. Everything is getting 0:09:15.520 --> 0:09:17.160 worse and worse and worse. And then of course we 0:09:17.200 --> 0:09:21.920 have war. War always comes after that. Um and uh, 0:09:22.000 --> 0:09:24.960 I set that up before the break, last last on 0:09:25.000 --> 0:09:28.520 the last section, and now I want to dive into, 0:09:29.040 --> 0:09:31.800 um some history. I love history. If you watch my 0:09:31.840 --> 0:09:33.760 YouTube channel, which if you don't, by the way, you 0:09:33.760 --> 0:09:36.360 should just search Mark Moss on YouTube. You can find 0:09:36.360 --> 0:09:39.720 that I try to always pull this historical lesson UM 0:09:39.760 --> 0:09:42.160 into each each of these so you can get this 0:09:42.280 --> 0:09:44.800 perspective that you can only get through history. The problem 0:09:44.880 --> 0:09:48.359 is that most of us, uh, we as humans were 0:09:49.800 --> 0:09:52.920 we were horrible investors um. And we suffer from a 0:09:52.960 --> 0:09:56.400 lot of problems as humans. UM. One of them is 0:09:56.600 --> 0:09:59.360 what's called normal c bias, and so we think whatever 0:09:59.400 --> 0:10:01.440 is normal, just is this is whatever we're doing right 0:10:01.440 --> 0:10:03.679 now is normal. That's why people today keep going when 0:10:03.679 --> 0:10:06.320 are we going back to normal? Well, there is no 0:10:06.400 --> 0:10:09.120 new normal. Uh, this is normal um. So anyway, there's 0:10:09.120 --> 0:10:11.920 normalcy bias. Another one that we suffer from is recency bias. 0:10:11.920 --> 0:10:14.680 And so whatever has happened recently, we think we'll just continue. 0:10:14.840 --> 0:10:16.559 If we have high inflation, we think there's always high 0:10:16.559 --> 0:10:19.400 inflation if we um, if we think the US as 0:10:19.760 --> 0:10:21.719 the world superpower will always be the world too power. 0:10:21.760 --> 0:10:23.360 But that's not necessarily the case, and so we have 0:10:23.480 --> 0:10:27.040 to look past our own knowledge and look past backwards 0:10:27.040 --> 0:10:29.080 into history. So let me give you a quick history 0:10:29.160 --> 0:10:32.560 lesson here. First off, the US has not always been 0:10:32.559 --> 0:10:34.840 the world superpower, and the US dollar has not always 0:10:34.840 --> 0:10:37.360 been the reserve currency of the world. Before the dollar 0:10:37.440 --> 0:10:39.720 was the reserve currency of the world, it was Britain 0:10:39.880 --> 0:10:44.680 with the pounds sterling. The US took that position over 0:10:44.760 --> 0:10:49.320 from Britain UM in around the thirties. All right, Now, 0:10:49.360 --> 0:10:52.400 what happened is that gold had been money for five 0:10:52.440 --> 0:10:55.559 thousand years. And but the problem with gold is it's 0:10:55.640 --> 0:10:58.560 very hard to transact. Um. We're in a digital age 0:10:58.600 --> 0:11:00.880 now right right now, I'm coming you live over the 0:11:00.880 --> 0:11:03.440 internet or over your radio, And how do I send 0:11:03.480 --> 0:11:07.360 you gold over the radio over the internet? You don't obviously, right, 0:11:07.679 --> 0:11:10.800 And so as we started to do commerce globally, um, 0:11:10.840 --> 0:11:13.040 it started be getting very difficult to transact with gold. 0:11:13.200 --> 0:11:15.040 So gold would go in a bank and then somebody 0:11:15.040 --> 0:11:17.920 would use a ledger and they would say, okay, now Mark, 0:11:17.960 --> 0:11:21.120 oh's you X amount of gold. But the problem is 0:11:21.160 --> 0:11:23.040 I have to trust that person with a ledger. How 0:11:23.040 --> 0:11:24.600 do I know if they're keeping the ledger right? What 0:11:24.640 --> 0:11:26.280 if something happens to them, what if they try to 0:11:26.480 --> 0:11:29.880 do something maliciously, et cetera. What happened is, over over 0:11:29.920 --> 0:11:31.760 a long period of time, all that gold ended up 0:11:31.800 --> 0:11:35.040 in the banks, and the banks issued US claims on 0:11:35.080 --> 0:11:37.320 the gold paper goalstificates. It was a claim on the 0:11:37.320 --> 0:11:39.199 gold that meant that if you had that paper goalstificate, 0:11:39.200 --> 0:11:41.079 you can go to the bank and you could exchange 0:11:41.080 --> 0:11:45.120 it for gold. Well, what happened is the United States, 0:11:45.600 --> 0:11:48.760 the banks they started printing so many of these paper 0:11:48.800 --> 0:11:52.480 claims that there wasn't enough gold to back up the claims. 0:11:54.000 --> 0:11:56.440 We couldn't trust them. Like this is the keyword. I'm 0:11:56.440 --> 0:11:59.040 gonna come back to you several times. We trusted the 0:11:59.080 --> 0:12:03.320 banks to hold our gold, and that we trusted these 0:12:03.360 --> 0:12:06.199 paper gold certificates would be redeemable for the gold whenever 0:12:06.200 --> 0:12:08.480 we want. Now you hear a lot of things about like, well, 0:12:08.480 --> 0:12:11.520 what's the dollar backed by or what's bitcoin back by? 0:12:11.600 --> 0:12:16.560 That term backed by only came from because we had 0:12:16.600 --> 0:12:20.120 paper gold certificates that were backed by gold. They were 0:12:20.160 --> 0:12:26.120 redeemable by gold when you had gold. What's gold back by? Exactly? Gold? 0:12:26.240 --> 0:12:28.559 Gold is gold, right. When I have gold gold, gold 0:12:28.600 --> 0:12:30.920 is backed by trust, meaning that somebody else would take 0:12:30.920 --> 0:12:32.839 it from me at some point. But the paper was 0:12:32.880 --> 0:12:35.040 backed by gold, I could go redeem it. What happened 0:12:35.080 --> 0:12:38.040 is by three they had printed so many paper cl 0:12:38.040 --> 0:12:40.840 certificates we did we trusted them and they let us 0:12:40.880 --> 0:12:43.319 down that there was a big problem. There wasn't enough 0:12:43.360 --> 0:12:45.160 gold to go around, and so what the government do. 0:12:45.360 --> 0:12:48.680 They created a um. They went on a bank holiday. 0:12:48.679 --> 0:12:50.560 That's that's what they called it, a bank holiday, meaning 0:12:50.559 --> 0:12:52.439 the bankers went on holiday. They shut the banks down, 0:12:52.520 --> 0:12:54.800 and you could not if you're an American at that time, 0:12:55.000 --> 0:12:57.160 could not get your money out of the bank because 0:12:57.160 --> 0:12:59.840 they were shut down when the bank's at that time, 0:13:00.000 --> 0:13:03.120 gold was the paper goalstificates those claims were worth. It 0:13:03.200 --> 0:13:06.720 took twenty of those paper goals ticates twenty dollars to 0:13:06.920 --> 0:13:09.839 get one ounce of gold. Well, when they shut the 0:13:09.840 --> 0:13:12.160 banks down, they shut them down approximately a week. When 0:13:12.160 --> 0:13:14.640 they opened them back up, you weren't able to go 0:13:15.160 --> 0:13:18.880 redeem those paper goalstificates for gold anymore. It was now illegal. 0:13:19.880 --> 0:13:22.760 You was American, couldn't own your gold. And even worse, 0:13:22.800 --> 0:13:25.120 instead of twenty dollars per ounce of gold, it was 0:13:25.120 --> 0:13:30.520 now thirty five. So you lost of your wealth overnight, 0:13:30.920 --> 0:13:34.960 just like that. Three is when the entire system changed. 0:13:35.000 --> 0:13:36.679 That was a big deal. What it did is it 0:13:36.800 --> 0:13:40.840 torpedoed trust. We trusted them to hold our gold. Now 0:13:40.920 --> 0:13:42.760 they just stole it from us and not only they 0:13:42.760 --> 0:13:45.080 steal it from us, they devalued our paper goal stificates. 0:13:46.600 --> 0:13:49.839 Imagine losing net worth overnight. That's what happened. Okay, then 0:13:49.880 --> 0:13:54.400 fast forward. I'm gonna go forward quickly. Or nine was 0:13:54.520 --> 0:13:56.720 one of the biggest years. Was the pivotal year. The 0:13:56.920 --> 0:14:01.480 entire world got together and created a global monetary standard, 0:14:01.480 --> 0:14:04.679 a gold system where the dollars would be backed by 0:14:04.679 --> 0:14:06.719 gold thirty five dollars equal one ounce of gold, and 0:14:06.760 --> 0:14:08.679 then all the currencies of the world would be pegged 0:14:08.720 --> 0:14:12.280 to the dollar. So basically everybody's on this gold standard, 0:14:12.679 --> 0:14:14.760 and so that worked pretty good. Now at the time, 0:14:15.120 --> 0:14:17.360 um that was called the Breton Woods Agreement, a gold standard. 0:14:17.360 --> 0:14:19.520 There was another system that was proposed, and this is 0:14:19.560 --> 0:14:21.400 an important piece because I'm gonna come back to this 0:14:21.480 --> 0:14:24.080 in the future. This is actually where we're maybe going 0:14:24.120 --> 0:14:26.240 into now. So there was another system proposed. It was 0:14:26.240 --> 0:14:29.240 called a BANKORPS system. And the bankcor system was proposed 0:14:29.280 --> 0:14:32.880 by somebody named John Maynard Keynes, and he said that 0:14:32.920 --> 0:14:35.440 what we should do is all the nations should have 0:14:35.560 --> 0:14:39.240 a neutral reserve asset and we should have a currency, 0:14:39.400 --> 0:14:42.800 a money system that's backed by commodities. Commodities are real things. 0:14:42.800 --> 0:14:48.320 Commodities are are gold, um, oil, wheat, things like that, minerals, medals, etcetera. 0:14:48.840 --> 0:14:51.000 So those are real things. Now. The reason why that's 0:14:51.000 --> 0:14:55.800 important to understand is that money gold was money for 0:14:55.800 --> 0:15:00.240 five thousand years. Money, gold, dollars, bitcoin, whatever want to 0:15:00.280 --> 0:15:04.160 call it. Money is a medium of exchange. That money 0:15:04.280 --> 0:15:07.920 isn't worth anything other than how much goods and services 0:15:07.920 --> 0:15:09.840 it will buy me. I've used the example many times. 0:15:10.120 --> 0:15:12.040 If I was on a deserted island with a billion 0:15:12.040 --> 0:15:13.960 dollars of cash, a billion dollars of gold, and a 0:15:14.000 --> 0:15:17.040 billion dollars of worth a bitcoin, none of it would 0:15:17.040 --> 0:15:21.080 be worth anything unless I had some goods and services 0:15:21.120 --> 0:15:23.040 I could buy, unless I had food and water and 0:15:23.080 --> 0:15:25.320 a boat and a phone to get off that stupid island. Right, 0:15:25.680 --> 0:15:27.800 So it wouldn't be worth anything to me, And so 0:15:28.840 --> 0:15:31.080 gold isn't worth anything. Bitcoin isn't worth anything. Dollars aren't 0:15:31.080 --> 0:15:33.600 worth anything unless I can buy goods and services with them, 0:15:33.600 --> 0:15:41.360 And so the goods and services are real things. Wheat, water, energy, Right, 0:15:41.400 --> 0:15:43.520 those are the things that we need to survive. We 0:15:43.560 --> 0:15:46.520 don't need gold to survive. So um, he suggested John 0:15:46.560 --> 0:15:48.880 Maynor Keen suggested in this bank or system that we 0:15:48.960 --> 0:15:53.560 had a neutral reserve asset that would be that would 0:15:53.600 --> 0:15:57.440 that would use a commodity basket, So a basket of commodity. 0:15:57.440 --> 0:15:58.760 So let's take a little bit of wheat, a little 0:15:58.800 --> 0:16:00.480 bit of oil, a little bit of gold and put 0:16:00.480 --> 0:16:02.560 it into a basket and then the nations will be 0:16:02.600 --> 0:16:04.320 backed by that. And the reason why that makes sense 0:16:04.400 --> 0:16:08.840 is that, Um, whether it's me Mark Moss as an individual, 0:16:09.280 --> 0:16:12.320 or me Mark or or our city or country or 0:16:12.360 --> 0:16:18.200 a nation, we must produce more then we consume. So 0:16:18.240 --> 0:16:20.680 we have trade balances. So if I, if I make 0:16:20.720 --> 0:16:23.080 the clothes and you make the food, I need to 0:16:23.120 --> 0:16:24.960 sell you enough clothes to make up for the food 0:16:25.000 --> 0:16:27.360 that you sell me. But if I if I can, 0:16:27.480 --> 0:16:29.080 if I sell you all the clothes, but it's still 0:16:29.080 --> 0:16:31.960 not enough to get the food, that's a problem. Alright, 0:16:32.000 --> 0:16:36.280 So um, we should have this neutral reserve asset of commodities. 0:16:36.480 --> 0:16:38.040 But anyway, the world didn't go that way. The world 0:16:38.080 --> 0:16:41.880 went to this breton Wood system, which was this goldback system. Okay, 0:16:41.920 --> 0:16:44.680 so the US had this massive privilege where the dollar 0:16:44.800 --> 0:16:47.560 was the reserve asset. The problem is the United States 0:16:47.600 --> 0:16:51.960 was trusted by the world to hold that system together, 0:16:52.360 --> 0:16:55.840 and then the world um would then store their wealth, 0:16:56.440 --> 0:17:00.240 their reserves, their savings would be held in dollars, and 0:17:00.280 --> 0:17:03.720 they trusted the United States to hold that system together. 0:17:04.480 --> 0:17:07.359 The problem is trust again and trust just like a 0:17:07.440 --> 0:17:11.560 nineteen thirty three was broken and then it happened again 0:17:11.560 --> 0:17:13.440 and again again. I'm gonna dig into that. I got 0:17:13.440 --> 0:17:14.840 a lot more to go. You're listening to the Mark 0:17:14.920 --> 0:17:18.000 Moa Show. We're talking about the decentralized Revolution. We're talking 0:17:18.000 --> 0:17:20.399 about the way the world is changing right now and why. 0:17:20.520 --> 0:17:22.960 And I'm going to be telling you the change that 0:17:23.040 --> 0:17:27.440 just happened on February two that changed everything as we 0:17:27.520 --> 0:17:29.840 know it. Do not go away. You don't want to 0:17:29.840 --> 0:17:31.800 miss this. I'll be right back with more. All right, 0:17:31.840 --> 0:17:34.439 welcome back. You're listening to the Mark ma Show, and 0:17:34.480 --> 0:17:37.240 we're talking about the decentralized Revolution. Each and every week, 0:17:37.280 --> 0:17:41.399 we're talking about the way that politics, technology, and finance 0:17:41.720 --> 0:17:45.480 are all colliding to change everything as we know it. 0:17:45.880 --> 0:17:47.760 And it's happening right now, right before our very eyes. 0:17:47.840 --> 0:17:49.520 Before the break, I was talking about how the world 0:17:49.560 --> 0:17:51.639 has gone crazy. Prices are going all over the place, 0:17:51.680 --> 0:17:53.760 wars are breaking out. You already know that I was 0:17:53.800 --> 0:17:57.679 talking about some dates, some very pivotal dates in history. 0:17:57.920 --> 0:18:01.600 I talked about nineteen thirty three. We trusted the US 0:18:01.640 --> 0:18:04.439 and the banks not to create more paper claims than 0:18:04.480 --> 0:18:07.640 they had gold, but they let us down. Um. We 0:18:07.720 --> 0:18:10.320 trusted them to hold our gold, and they let us down. 0:18:10.320 --> 0:18:12.240 They seized it, and they made it illegal, so they stole. 0:18:12.320 --> 0:18:14.199 Not only did they print more they lied to us 0:18:14.200 --> 0:18:16.320 and printed more paper galtificates, but then they actually stole 0:18:16.320 --> 0:18:20.600 the gold from us. That sucked. Four. The world was 0:18:20.640 --> 0:18:23.119 at this pivotal place to to set up a new 0:18:23.280 --> 0:18:25.880 global financial system. Would it be the bank course system 0:18:26.000 --> 0:18:28.240 or would it be the Bretton Wood system. Well, the 0:18:28.280 --> 0:18:30.480 breton Wood system one out will come back to the 0:18:30.480 --> 0:18:34.439 bank corps later um. And again the world trusted the 0:18:34.520 --> 0:18:37.919 United States to uphold this system and so they could save, 0:18:38.200 --> 0:18:40.720 they could put their reserves, nations could put their savings 0:18:40.720 --> 0:18:43.040 and reserves into U S dollars into U S treasuries. 0:18:43.240 --> 0:18:47.760 Has not happened from until ninety one. And what happened 0:18:47.800 --> 0:18:50.280 is um, the nations of the world were told, yeah, 0:18:50.400 --> 0:18:53.720 save in dollars, that's fine, and any time you want, 0:18:53.880 --> 0:18:58.200 we will convert those dollars back into gold for you um. 0:18:58.200 --> 0:19:00.600 But the problem happened is that again anything that happened 0:19:00.720 --> 0:19:03.960 up to ninety three, the government printed way too many dollars, 0:19:04.440 --> 0:19:06.879 and the nations around the world realized what was happening, 0:19:06.920 --> 0:19:08.800 and they didn't trust the U. S and they said, hey, 0:19:08.920 --> 0:19:11.080 we know what you're doing here. This is ridiculous. We 0:19:11.119 --> 0:19:13.520 don't want these fake paper gold certificates. We want the gold. 0:19:13.800 --> 0:19:16.359 And so the nations kept trying to come and repatriot 0:19:16.400 --> 0:19:19.240 or basically take back their gold from the U s UM. Finally, 0:19:19.280 --> 0:19:21.359 in nineteen s one, France I believe it sent their 0:19:21.359 --> 0:19:23.800 warships to the US to collect their gold, and President 0:19:23.880 --> 0:19:28.320 Richard Nixon said, nope, we're not doing anymore. Basically defaulted 0:19:28.320 --> 0:19:29.680 on the debt. We're not going to pay the debts 0:19:29.720 --> 0:19:31.680 that we owe anymore on the in the United States 0:19:31.720 --> 0:19:36.040 went bankrupt NTE, and it ended the gold system. And again, 0:19:36.160 --> 0:19:38.679 the world trusted I'm gonna keep coming back to that 0:19:38.720 --> 0:19:41.399 word trust, or the world trusted the United States to 0:19:41.760 --> 0:19:44.320 hold their gold. The world trusted the United States to 0:19:44.440 --> 0:19:48.120 keep the dollar um and the gold system and check, 0:19:48.240 --> 0:19:52.800 the world trusted the US to exchange these paper clal 0:19:52.840 --> 0:19:56.199 certificates for gold. But one the world found out they 0:19:56.240 --> 0:19:59.000 couldn't trust the United States and any of that. They 0:19:59.080 --> 0:20:03.000 printed too many dollars, they didn't give them their gold back, etcetera. 0:20:03.400 --> 0:20:05.560 All right, so then the world went into what's known 0:20:05.600 --> 0:20:08.680 as a petro dollar system. So then, since the dollar 0:20:08.760 --> 0:20:11.639