1 00:00:00,040 --> 00:00:02,880 Speaker 1: Hello, and welcome to another episode of The Mark Moss Show, 2 00:00:02,880 --> 00:00:06,000 Speaker 1: where of course we talk about the decentralized revolution each 3 00:00:06,000 --> 00:00:08,640 Speaker 1: and every week, the way the world is changing, and 4 00:00:08,640 --> 00:00:11,319 Speaker 1: it's changing rapidly right before our very eyes. We look 5 00:00:11,360 --> 00:00:14,000 Speaker 1: at through the lens of politics, finance, and technology, and 6 00:00:14,040 --> 00:00:19,119 Speaker 1: of course that technology is bitcoin. It's the decentralized revolution 7 00:00:19,160 --> 00:00:22,239 Speaker 1: that is changing the world. Now, who we got a 8 00:00:22,280 --> 00:00:25,560 Speaker 1: big show to cover today because there are big things 9 00:00:25,880 --> 00:00:29,240 Speaker 1: happening in the cryptocurrency market. Well, this big thing happening 10 00:00:29,280 --> 00:00:32,000 Speaker 1: in the world, a big thing happening in the markets, um, 11 00:00:32,880 --> 00:00:37,280 Speaker 1: and there is big things happening in the cryptocurrency space, 12 00:00:37,840 --> 00:00:42,240 Speaker 1: and it's important to understand what's actually happening because it's 13 00:00:42,280 --> 00:00:45,800 Speaker 1: like a microcosm. It's like, uh, it's like a little 14 00:00:45,960 --> 00:00:49,519 Speaker 1: model that we can see and we can understand easier, 15 00:00:50,200 --> 00:00:53,440 Speaker 1: and we can see it happen in much shorter time frames. 16 00:00:53,880 --> 00:00:57,920 Speaker 1: But it's exactly, uh, it's exactly what's happening in the 17 00:00:57,920 --> 00:01:00,960 Speaker 1: bigger financial system, and it's exactly what's happening in the 18 00:01:01,040 --> 00:01:05,040 Speaker 1: bigger global landscape. What's happened to other countries and will 19 00:01:05,040 --> 00:01:08,000 Speaker 1: eventually happen to the United States as well. And so 20 00:01:08,200 --> 00:01:10,559 Speaker 1: if you can understand what's happening here in the crypto space, 21 00:01:10,640 --> 00:01:13,640 Speaker 1: which you should, um, then you can understand everything else. 22 00:01:13,680 --> 00:01:15,959 Speaker 1: So we've got lots of cover today. I'm excited to 23 00:01:15,959 --> 00:01:20,200 Speaker 1: get into this. UM. I am wearing my hottle shirt today. 24 00:01:21,240 --> 00:01:24,760 Speaker 1: I have changed. I've broken from my normal uniform of 25 00:01:24,760 --> 00:01:28,000 Speaker 1: a black shirt to represent my hottle shirt because that's 26 00:01:28,000 --> 00:01:29,839 Speaker 1: what we need to do today. We have to hoddle. 27 00:01:30,440 --> 00:01:34,080 Speaker 1: The price of bitcoin is plunging, the cryptocurrency market is 28 00:01:34,120 --> 00:01:36,800 Speaker 1: plunging based off of the news that I am going 29 00:01:36,880 --> 00:01:40,959 Speaker 1: to unpack for you, So let's jump into it. What 30 00:01:41,040 --> 00:01:45,679 Speaker 1: am I talking about? Well, another one bites the dust? 31 00:01:45,880 --> 00:01:48,040 Speaker 1: How about that? How's that for a title? Another one 32 00:01:48,040 --> 00:01:51,360 Speaker 1: bites the dust, and I am talking about another pillar, 33 00:01:51,680 --> 00:01:56,320 Speaker 1: a giant in the cryptocurrency space is done for game 34 00:01:56,360 --> 00:02:00,160 Speaker 1: over Now, We've been talking about this for a while. UM, 35 00:02:00,200 --> 00:02:02,880 Speaker 1: this kind of domino effect that happened, and really we 36 00:02:02,920 --> 00:02:07,680 Speaker 1: saw the cryptocurrency markets plunge, Bitcoin plunge, cryptocurrency markets plunged 37 00:02:08,120 --> 00:02:12,040 Speaker 1: when Tara Luna the stable coin broke And I'm not 38 00:02:12,040 --> 00:02:14,560 Speaker 1: going to go through all that again. Hopefully remember that. 39 00:02:14,600 --> 00:02:16,680 Speaker 1: If not, don't worry you can go back and check 40 00:02:16,720 --> 00:02:19,000 Speaker 1: it out on the podcast. Just check out your favorite 41 00:02:19,000 --> 00:02:21,920 Speaker 1: podcast player for the Markmas Show and you'll find those episodes. 42 00:02:21,960 --> 00:02:26,920 Speaker 1: But we saw Tera Luna, which was this algorithmically programmed 43 00:02:26,960 --> 00:02:30,959 Speaker 1: stable coin was a horrible idea, UM, and they were 44 00:02:31,000 --> 00:02:33,440 Speaker 1: trying to keep this pigs. They created their own token 45 00:02:33,480 --> 00:02:35,960 Speaker 1: from thin air, and they were trying to keep it 46 00:02:36,000 --> 00:02:41,880 Speaker 1: algorithm algorithmically pegged at dollar parody. And then they took 47 00:02:41,880 --> 00:02:44,280 Speaker 1: a bunch of the money that they had made from 48 00:02:44,320 --> 00:02:46,680 Speaker 1: selling this made up token out of thin air and 49 00:02:46,680 --> 00:02:49,560 Speaker 1: put into bitcoin. When it all started to come apart, 50 00:02:49,639 --> 00:02:52,160 Speaker 1: when the peg was being broken and they're made up 51 00:02:52,160 --> 00:02:55,120 Speaker 1: token started losing value, they were forced to dump all 52 00:02:55,120 --> 00:02:57,320 Speaker 1: their bitcoin into the market, and it brought the price 53 00:02:57,360 --> 00:02:59,920 Speaker 1: of bitcoin down. When the price of bitcoin came down, 54 00:03:00,040 --> 00:03:02,079 Speaker 1: then it's created this domino effect where then we saw 55 00:03:02,160 --> 00:03:05,480 Speaker 1: Celsius go down, we saw three Arrows Capital go down, 56 00:03:05,680 --> 00:03:07,919 Speaker 1: we saw Voyager go down, we saw block Fire go down, 57 00:03:07,919 --> 00:03:10,400 Speaker 1: and it was like this domino effect. Um. It was 58 00:03:10,440 --> 00:03:13,400 Speaker 1: pretty interesting. Now. I said at the time, and I'm 59 00:03:13,440 --> 00:03:17,360 Speaker 1: gonna unpack for you again that pegs are always meant 60 00:03:17,400 --> 00:03:22,680 Speaker 1: to be broken because somebody is trying to artificially engineer value, 61 00:03:23,000 --> 00:03:26,880 Speaker 1: trying to artificially engineer the way the markets work by 62 00:03:27,080 --> 00:03:30,799 Speaker 1: creating this arbitrary value pegging it. But that's not how 63 00:03:30,840 --> 00:03:34,839 Speaker 1: markets work. Value is always subjective. People say, well, there's 64 00:03:34,880 --> 00:03:36,960 Speaker 1: no intrinsic value. You've got the Peter Shifts of the 65 00:03:36,960 --> 00:03:40,440 Speaker 1: world saying that bitcoin isn't like gold. Gold has intrinsic value. 66 00:03:40,480 --> 00:03:44,600 Speaker 1: Bitcoin doesn't know. That's false. There is no such thing 67 00:03:44,760 --> 00:03:49,240 Speaker 1: as intrinsic value. Period All value is always subjective. It's 68 00:03:49,280 --> 00:03:51,920 Speaker 1: always subjective of giving you examples of that over and 69 00:03:52,000 --> 00:03:54,280 Speaker 1: over and so the problem is when you try to 70 00:03:54,800 --> 00:03:57,480 Speaker 1: engineer value, when you try to gamify it, when you 71 00:03:57,520 --> 00:04:00,880 Speaker 1: try to force it like fiat. Current. See, a lot 72 00:04:00,880 --> 00:04:03,760 Speaker 1: of people don't really understand what that word fiat means. 73 00:04:03,800 --> 00:04:05,320 Speaker 1: It's a new word. As a matter of fact, I 74 00:04:05,400 --> 00:04:09,000 Speaker 1: would like credit bitcoin for bringing that word fiat back 75 00:04:09,040 --> 00:04:15,720 Speaker 1: to kind of main um the mainstream. Fiat means by decree, 76 00:04:16,000 --> 00:04:20,280 Speaker 1: so all things have value because we believe they have value. Collectively, 77 00:04:20,400 --> 00:04:24,279 Speaker 1: the market agrees that certain things have certain values. But 78 00:04:24,560 --> 00:04:28,760 Speaker 1: fiat means that it's not up to the market. We decree, 79 00:04:28,800 --> 00:04:30,720 Speaker 1: by decree, we give it value. So that's exactly what 80 00:04:30,720 --> 00:04:33,520 Speaker 1: happened with these pegs is they try to buy, decree 81 00:04:33,560 --> 00:04:36,760 Speaker 1: give something value, and sometimes the market goes along with 82 00:04:36,760 --> 00:04:38,280 Speaker 1: it for a while, and then the market says, we 83 00:04:38,520 --> 00:04:40,280 Speaker 1: don't value it anymore. And now we see this happen 84 00:04:40,320 --> 00:04:43,400 Speaker 1: all over the place. UH is typically known as bubbles. 85 00:04:43,440 --> 00:04:45,799 Speaker 1: So the famous one that people want to point Bitcoin 86 00:04:45,839 --> 00:04:49,040 Speaker 1: too is the tulip bubble. And they'd say, they point 87 00:04:49,080 --> 00:04:50,800 Speaker 1: to Bitcoin is no different than to the bubble. So 88 00:04:50,839 --> 00:04:53,240 Speaker 1: back in Holland, I think it was the sixteen hundreds. 89 00:04:53,520 --> 00:04:56,440 Speaker 1: Um in Holland, they have tulips to the flowers, and 90 00:04:56,640 --> 00:04:58,599 Speaker 1: all of a sudden, for some reason, they started becoming 91 00:04:58,600 --> 00:05:00,920 Speaker 1: more and more valuable, and certain tulips were worth more 92 00:05:00,960 --> 00:05:04,120 Speaker 1: than others, and then it turned into a mania where 93 00:05:04,160 --> 00:05:07,760 Speaker 1: collectively the market started paying more. Well, then tulips went 94 00:05:07,760 --> 00:05:09,680 Speaker 1: from this price to this price, so then people were like, okay, 95 00:05:09,680 --> 00:05:11,559 Speaker 1: we'll pay more, and I'll pay more, and the price 96 00:05:11,560 --> 00:05:15,120 Speaker 1: of tulips went straight up like a skyrocket. And then 97 00:05:15,560 --> 00:05:18,520 Speaker 1: all of a sudden people figured out that they were 98 00:05:18,560 --> 00:05:22,080 Speaker 1: just flowers and that they were great valued way too high, 99 00:05:22,320 --> 00:05:24,599 Speaker 1: and nobody wanted them anymore, and then the price came 100 00:05:24,800 --> 00:05:27,599 Speaker 1: straight back down. Now, one thing I'll point out is 101 00:05:27,640 --> 00:05:30,640 Speaker 1: that very simply, Look, I'll make the financial markets super 102 00:05:30,680 --> 00:05:33,080 Speaker 1: simple for you. That's my goal. Take these financial subjects, 103 00:05:33,120 --> 00:05:35,799 Speaker 1: these complex financial subjects, and make them very easy to understand. 104 00:05:36,000 --> 00:05:38,000 Speaker 1: And so look, I'm gonna make it super simple. It's 105 00:05:38,000 --> 00:05:43,440 Speaker 1: not oversimplifying this outworks. Markets stopped going up when there's 106 00:05:43,440 --> 00:05:48,000 Speaker 1: no more buyers. Also, markets stopped going down when there's 107 00:05:48,000 --> 00:05:51,279 Speaker 1: no more sellers. So in this example of the tulip mania, 108 00:05:51,600 --> 00:05:53,800 Speaker 1: which by the way I should I didn't prepare this 109 00:05:53,920 --> 00:05:59,680 Speaker 1: part to the mania, six thirty six is when it happened, 110 00:06:00,200 --> 00:06:03,800 Speaker 1: and it happened over just a very short period of time. Uh, 111 00:06:04,440 --> 00:06:09,680 Speaker 1: sixteen thirty six. Sixteen thirty seven speculations drove the value 112 00:06:09,680 --> 00:06:13,440 Speaker 1: of tulip bulbs to extremes. At the market's peak, the 113 00:06:13,560 --> 00:06:17,479 Speaker 1: rarest tulip bulbs traded for as much as six times 114 00:06:17,839 --> 00:06:23,760 Speaker 1: the average person's annual salary. Wow, think about that, six 115 00:06:23,880 --> 00:06:30,640 Speaker 1: times the average annual wage, which is in the United States, 116 00:06:31,240 --> 00:06:36,279 Speaker 1: the average annual wages fifty three thousand dollars a year, 117 00:06:37,440 --> 00:06:40,040 Speaker 1: fifty three grand a year. So time six, that's how 118 00:06:40,120 --> 00:06:42,480 Speaker 1: much the two loops were going for. So anyway, um, 119 00:06:42,680 --> 00:06:45,200 Speaker 1: as it started going higher, higher, higher, higher, higher, and 120 00:06:45,240 --> 00:06:47,360 Speaker 1: then all of a sudden there was no more buyers 121 00:06:47,680 --> 00:06:50,000 Speaker 1: and they said, uh, you know what, we don't we 122 00:06:50,000 --> 00:06:51,679 Speaker 1: don't think it's worth that, we're not gonna buy anymore. 123 00:06:51,920 --> 00:06:54,800 Speaker 1: And then the whole thing crashing and it never came back. 124 00:06:54,839 --> 00:06:58,640 Speaker 1: So trying to compare bitcoined two is ridiculous. But the 125 00:06:58,680 --> 00:07:01,440 Speaker 1: point is is that the mark get collectively agreed that 126 00:07:01,480 --> 00:07:04,400 Speaker 1: they would give it value and they did. All right, 127 00:07:04,680 --> 00:07:07,920 Speaker 1: now let's jump into what happened here. Another one bites 128 00:07:07,920 --> 00:07:09,840 Speaker 1: the death. So when you're trying to peg things, you're 129 00:07:09,840 --> 00:07:12,160 Speaker 1: trying to create this artificial value, it always is meant 130 00:07:12,160 --> 00:07:17,120 Speaker 1: to be broken. Now, the most famous example of this, well, 131 00:07:17,240 --> 00:07:19,360 Speaker 1: real quickly, we're talking about, just so that you know, 132 00:07:19,600 --> 00:07:23,720 Speaker 1: we're talking about the ft X cryptocurrency exchange is the 133 00:07:23,800 --> 00:07:28,600 Speaker 1: second largest cryptocurrency exchange. I'll call it a cryptocurrency casino. 134 00:07:28,840 --> 00:07:30,800 Speaker 1: That's what it is. It's gambling, and I'm gonna explain 135 00:07:30,840 --> 00:07:34,080 Speaker 1: to you why it's gambling. Um, I know a lot 136 00:07:34,160 --> 00:07:36,720 Speaker 1: of you guys think that crypto is this innovation and 137 00:07:36,760 --> 00:07:38,760 Speaker 1: it's the hottest thing ever, and it's gonna be worth 138 00:07:38,800 --> 00:07:41,680 Speaker 1: all this money. It's really a casino. And when I 139 00:07:41,880 --> 00:07:44,440 Speaker 1: unpack and uncover all this for you, you're going to 140 00:07:44,520 --> 00:07:50,360 Speaker 1: see exactly why. And Japan Bank of England UH and 141 00:07:50,640 --> 00:07:53,040 Speaker 1: the e c B and yes, even the United States 142 00:07:53,160 --> 00:07:55,760 Speaker 1: is also a casino as well. Once I unpack all this, 143 00:07:55,800 --> 00:07:57,840 Speaker 1: it's gonna be super easy to understand. Before we get 144 00:07:57,840 --> 00:07:59,720 Speaker 1: into the f t X, what happened to Sam bankman 145 00:07:59,760 --> 00:08:01,920 Speaker 1: Free how they how he lost the second the second 146 00:08:02,000 --> 00:08:04,840 Speaker 1: largest exchange. I want to rewind the clock just to 147 00:08:04,840 --> 00:08:06,680 Speaker 1: give you a little bit of a better example. We're 148 00:08:06,680 --> 00:08:08,160 Speaker 1: gonna go through history. I know you love it when 149 00:08:08,160 --> 00:08:10,040 Speaker 1: I give you a history lesson, and I want to 150 00:08:10,040 --> 00:08:14,160 Speaker 1: go back to the story of George Soros. Everybody's favorite villains, 151 00:08:14,160 --> 00:08:16,680 Speaker 1: certainly not my favorite guy, but it's an important story 152 00:08:16,720 --> 00:08:20,559 Speaker 1: to understand. How did George Soros get so rich? Well, 153 00:08:20,800 --> 00:08:22,640 Speaker 1: he was, he was a trader, one of the most 154 00:08:22,680 --> 00:08:25,800 Speaker 1: successful investors and traders in history, by the way. But 155 00:08:25,840 --> 00:08:29,520 Speaker 1: he got famously rich by making a billion dollars in 156 00:08:29,560 --> 00:08:34,320 Speaker 1: a single day, um back in the nineties. Now a 157 00:08:34,360 --> 00:08:36,599 Speaker 1: billion dollars was a lot more money back in the 158 00:08:37,040 --> 00:08:38,640 Speaker 1: nineties and is today. And so we made that in 159 00:08:38,679 --> 00:08:40,920 Speaker 1: a single day, And how did he do that, well, 160 00:08:41,400 --> 00:08:43,440 Speaker 1: I'm gonna break that down for you. I want to 161 00:08:43,520 --> 00:08:46,280 Speaker 1: explain to you what he did and how this translates 162 00:08:46,280 --> 00:08:49,400 Speaker 1: into what's happening with f t X, how finance just 163 00:08:49,440 --> 00:08:51,280 Speaker 1: to took out fd X, what this means for you 164 00:08:51,320 --> 00:08:54,360 Speaker 1: if you're in the cryptocurrency market, and how it's just 165 00:08:54,400 --> 00:08:58,840 Speaker 1: a smaller um microcosm of actually what's happening with the 166 00:08:58,880 --> 00:09:02,600 Speaker 1: central banks around the world, including the United States dollar 167 00:09:02,640 --> 00:09:04,680 Speaker 1: in the federal reserves. I'm gonna explain all of that. 168 00:09:04,960 --> 00:09:08,120 Speaker 1: You do not want to miss this. It's gonna be 169 00:09:08,200 --> 00:09:10,240 Speaker 1: expensive lesson if you missed this, because this is going 170 00:09:10,280 --> 00:09:11,920 Speaker 1: to happen to you no matter whe're a in the world. 171 00:09:12,080 --> 00:09:13,720 Speaker 1: If you're just tuning in, you're listening to the Mark 172 00:09:13,760 --> 00:09:17,560 Speaker 1: Moss Show breaking down the decentralized Revolution, and I'm gonna 173 00:09:17,559 --> 00:09:20,040 Speaker 1: explain to you what happened in the cryptocurrency space this 174 00:09:20,080 --> 00:09:23,080 Speaker 1: week and how it's coming for the rest of financial markets. 175 00:09:23,360 --> 00:09:24,800 Speaker 1: Don't miss this. I'll be right back with more in 176 00:09:24,840 --> 00:09:27,120 Speaker 1: a minute. Don't go away, right back, all right, welcome back. 177 00:09:27,120 --> 00:09:28,920 Speaker 1: If you're just tuning in, you're listening to the Mark 178 00:09:29,000 --> 00:09:31,680 Speaker 1: Moss Show, I'm breaking down what happened this week in 179 00:09:31,720 --> 00:09:36,400 Speaker 1: the cryptocurrency markets. How the second largest exchange I'm talking about, 180 00:09:36,440 --> 00:09:39,200 Speaker 1: f t X, was just taken out by the number 181 00:09:39,240 --> 00:09:42,160 Speaker 1: one exchange, their competitor, Buyinance. Before we get into that, 182 00:09:42,200 --> 00:09:44,200 Speaker 1: I wanna, I wanna, I wanna. I'm gonna break down 183 00:09:44,200 --> 00:09:46,400 Speaker 1: this whole thing for you so you can understand what 184 00:09:46,400 --> 00:09:48,920 Speaker 1: happened here. How it was just a small example of 185 00:09:48,920 --> 00:09:51,560 Speaker 1: what's happening in the greater financial system. But I'm gonna 186 00:09:51,600 --> 00:09:54,160 Speaker 1: give you this story real quick about George Soros and 187 00:09:54,200 --> 00:09:57,560 Speaker 1: how he broke the British pound. And so what happened is, again, 188 00:09:58,200 --> 00:10:01,560 Speaker 1: all value is subject, all values created by the market. 189 00:10:01,720 --> 00:10:03,880 Speaker 1: Whenever you try to force it, that's when you create 190 00:10:03,920 --> 00:10:06,400 Speaker 1: the problem. So the British pound, so you know, all 191 00:10:06,440 --> 00:10:08,880 Speaker 1: these countries in Europe had their own currencies. So the 192 00:10:09,080 --> 00:10:11,840 Speaker 1: in in Britain they had the pound. In German Germany 193 00:10:11,840 --> 00:10:13,679 Speaker 1: they had the mark. And what happened is the British 194 00:10:13,720 --> 00:10:17,640 Speaker 1: pound was shadowing the German mark in in thees. Even 195 00:10:17,640 --> 00:10:20,600 Speaker 1: though the two countries were completely different countries, they had 196 00:10:20,600 --> 00:10:24,240 Speaker 1: different economical basis, imports, exports, all of that. At the time, 197 00:10:24,280 --> 00:10:27,600 Speaker 1: Germany was a much stronger um country, at the time 198 00:10:27,840 --> 00:10:31,160 Speaker 1: and they still are today. But the UK they wanted 199 00:10:31,200 --> 00:10:34,240 Speaker 1: to keep the value of their pound at two point 200 00:10:34,360 --> 00:10:37,080 Speaker 1: seven marks, so you could always exchange one pound for 201 00:10:37,200 --> 00:10:40,959 Speaker 1: two point seven marks. They picked that number. That's an 202 00:10:41,080 --> 00:10:45,040 Speaker 1: arbitrary number. They decreed Fiat by decree, we say that 203 00:10:45,120 --> 00:10:47,960 Speaker 1: one pound is worth two point seven, but the market 204 00:10:48,040 --> 00:10:52,520 Speaker 1: doesn't always agree. The problem is that in Britain they 205 00:10:52,520 --> 00:10:57,520 Speaker 1: had very high interest rates um and they had equally 206 00:10:57,640 --> 00:11:01,240 Speaker 1: high inflation, so the value value of their dollar was 207 00:11:01,280 --> 00:11:04,080 Speaker 1: going down. Their dollars the pounds were buying less and 208 00:11:04,160 --> 00:11:07,160 Speaker 1: less goods right when inflation. When you hear about inflation, 209 00:11:07,200 --> 00:11:09,079 Speaker 1: the FED is trying to fight inflation. That that means 210 00:11:09,120 --> 00:11:11,640 Speaker 1: they're trying to fight prices going up, the cost of gas, 211 00:11:11,720 --> 00:11:14,000 Speaker 1: the price of homes, the price of food is going 212 00:11:14,080 --> 00:11:16,720 Speaker 1: too high. It's not that the prices are going higher, 213 00:11:17,040 --> 00:11:19,480 Speaker 1: is that the value of the dollar was going down, 214 00:11:19,520 --> 00:11:21,840 Speaker 1: so it takes more of those dollars to buy those things, 215 00:11:21,880 --> 00:11:24,679 Speaker 1: so that those work in opposite. So what happened is 216 00:11:24,720 --> 00:11:27,600 Speaker 1: in Britain they had high interest rates and they had 217 00:11:27,600 --> 00:11:32,680 Speaker 1: it high inflation, but they also demanded that remember that 218 00:11:32,720 --> 00:11:37,480 Speaker 1: the pound exchange two point seven for one mark. They 219 00:11:37,520 --> 00:11:40,000 Speaker 1: had to do that in order to enter into something 220 00:11:40,040 --> 00:11:43,960 Speaker 1: called the e r M, and it's exchange rate mechanisms. 221 00:11:44,000 --> 00:11:47,439 Speaker 1: So European Union, the EU was forming, and they're trying 222 00:11:47,440 --> 00:11:49,800 Speaker 1: to figure out how all these countries could work and 223 00:11:49,840 --> 00:11:52,000 Speaker 1: how these different currencies could be exchanged for each other. 224 00:11:52,000 --> 00:11:53,520 Speaker 1: So Britain want to enter to the e r M. 225 00:11:54,080 --> 00:11:58,560 Speaker 1: Now many speculators, gamblers, traders, whatever you want to call them, 226 00:11:58,960 --> 00:12:02,760 Speaker 1: George Soros being one of them. He wondered how long 227 00:12:03,320 --> 00:12:08,000 Speaker 1: could these fixed exchange rates really work? How long could 228 00:12:08,000 --> 00:12:12,360 Speaker 1: they fight against market forces? And so speculators like George 229 00:12:12,360 --> 00:12:16,240 Speaker 1: Soros began to take up short positions against the pound. 230 00:12:16,640 --> 00:12:19,440 Speaker 1: They were basically saying, look, we don't believe that it's 231 00:12:19,480 --> 00:12:23,800 Speaker 1: worth two point seven marks. We don't believe that um, 232 00:12:23,840 --> 00:12:25,800 Speaker 1: and we can see that you have high inflation, high 233 00:12:25,840 --> 00:12:28,240 Speaker 1: interest rates, and and we know that it's not worth that, 234 00:12:28,280 --> 00:12:29,840 Speaker 1: and we know that it's going to drop in value, 235 00:12:30,080 --> 00:12:33,640 Speaker 1: that the pound will lose value, so we're gonna bet 236 00:12:33,800 --> 00:12:36,679 Speaker 1: that it's going to go down. Now what happened is 237 00:12:36,960 --> 00:12:40,040 Speaker 1: so they're selling it short, they're put they're trying to 238 00:12:40,080 --> 00:12:43,959 Speaker 1: push the value of the pound down, and the UK 239 00:12:44,120 --> 00:12:45,560 Speaker 1: didn't want that to happen. So what do they do? 240 00:12:45,720 --> 00:12:47,400 Speaker 1: They try to defend it. How do they defend it? 241 00:12:47,480 --> 00:12:50,000 Speaker 1: Will they start buying it? So Soros and the speculators 242 00:12:50,000 --> 00:12:53,080 Speaker 1: are selling it down, shorten it and the UK is 243 00:12:53,120 --> 00:12:55,439 Speaker 1: forced to buy it to try to prop it back up. 244 00:12:55,640 --> 00:12:59,640 Speaker 1: And what they did is they raised interest rates um 245 00:12:59,720 --> 00:13:03,000 Speaker 1: to double digits to try to attract more investors to 246 00:13:03,080 --> 00:13:06,120 Speaker 1: buy the pound. So, um, hey, right now if you 247 00:13:06,120 --> 00:13:09,960 Speaker 1: put your you know, if you buy dollars from the U. S. Treasury, 248 00:13:10,000 --> 00:13:13,800 Speaker 1: they'll pay you about almost five percent right now, and 249 00:13:13,840 --> 00:13:16,679 Speaker 1: so that's attracting more investment capital. People are like, we'll 250 00:13:16,679 --> 00:13:19,800 Speaker 1: shoot um, losing money sitting in the Argentina paso or 251 00:13:19,800 --> 00:13:21,880 Speaker 1: the Turkish lira or the pace or whatever it is. 252 00:13:21,960 --> 00:13:23,640 Speaker 1: So we'll put our money into the dollar at the 253 00:13:23,640 --> 00:13:26,679 Speaker 1: treasury will make four or um and if they continue 254 00:13:26,720 --> 00:13:29,000 Speaker 1: to raise rates, more and more money will come into 255 00:13:29,000 --> 00:13:31,000 Speaker 1: the dollars. That's exactly what the Bank of England did 256 00:13:31,120 --> 00:13:33,560 Speaker 1: or the UK did. They raised interest rates to double 257 00:13:33,559 --> 00:13:36,760 Speaker 1: digits to try to attract more investors to help buy 258 00:13:36,880 --> 00:13:40,600 Speaker 1: up the pound to fend off the attack of George 259 00:13:40,600 --> 00:13:44,920 Speaker 1: Soros and the speculators. Now what happened though, is now 260 00:13:45,000 --> 00:13:48,439 Speaker 1: that now they had to pay out all this interest expense. Right, 261 00:13:48,480 --> 00:13:51,400 Speaker 1: they raised rates to attract investors. The investors came, but 262 00:13:51,480 --> 00:13:54,880 Speaker 1: now they had to pay out the money. But the 263 00:13:54,920 --> 00:13:57,760 Speaker 1: British government realized that it was going to lose billions 264 00:13:57,760 --> 00:14:01,400 Speaker 1: of dollars trying to artificy sually prop up the pound. 265 00:14:01,920 --> 00:14:08,120 Speaker 1: So after trying and spending billions of dollars, they gave up. Basically, 266 00:14:08,200 --> 00:14:10,760 Speaker 1: they had to withdraw from this e r M that 267 00:14:10,800 --> 00:14:13,800 Speaker 1: they are in the exchange rate mechanism. And when that happened, 268 00:14:14,559 --> 00:14:16,520 Speaker 1: it plunged. They gave up the peg. They said forget it, 269 00:14:16,600 --> 00:14:19,080 Speaker 1: We're gonna withdraw out of the RM, and the pound 270 00:14:19,320 --> 00:14:22,200 Speaker 1: crashed in value, and Stros and the other speculators that 271 00:14:22,240 --> 00:14:24,760 Speaker 1: had all these short bets piled up. They made a 272 00:14:24,760 --> 00:14:27,280 Speaker 1: billion dollars off of this one trade. Now, why do 273 00:14:27,400 --> 00:14:29,360 Speaker 1: I break that story down for you, because that's exactly 274 00:14:29,400 --> 00:14:31,640 Speaker 1: what happened with Harry Luna. I'm sorry with Terry Luna. 275 00:14:31,640 --> 00:14:33,360 Speaker 1: It's exactly what happened now with f t X, and 276 00:14:33,360 --> 00:14:35,680 Speaker 1: it's exactly what's happening in Japan, Bank of England and 277 00:14:35,680 --> 00:14:37,600 Speaker 1: will happen in the United States as well, so let's 278 00:14:37,600 --> 00:14:40,560 Speaker 1: break this down a little bit. So, um, you might 279 00:14:40,640 --> 00:14:43,800 Speaker 1: know who Sam Bankman Freed is UM from f t X. 280 00:14:43,800 --> 00:14:45,880 Speaker 1: F t X, as I said, is the second largest 281 00:14:45,920 --> 00:14:50,280 Speaker 1: cryptocurrency casino are they call him exchanged? Now, like I said, 282 00:14:50,360 --> 00:14:53,040 Speaker 1: when this whole thing broke down where Tara Luna crashed 283 00:14:53,040 --> 00:14:55,240 Speaker 1: and then Celsius crashed in three AARs capital crash and 284 00:14:55,320 --> 00:14:58,760 Speaker 1: Voyager and blocked by the whole thing, Sam Bankman Freed, 285 00:14:59,440 --> 00:15:02,760 Speaker 1: the founder of f t X, came out as the savior. 286 00:15:03,440 --> 00:15:07,560 Speaker 1: Everybody applauded him. Hey, he came out. He saved everybody. Congratulations. 287 00:15:07,800 --> 00:15:10,920 Speaker 1: He was featured on like Time magazines and the Financial 288 00:15:10,960 --> 00:15:14,040 Speaker 1: Times and all these articles that he was the savior. 289 00:15:14,120 --> 00:15:17,080 Speaker 1: He was going to backstop everything. He was the smartest guy. 290 00:15:17,120 --> 00:15:19,600 Speaker 1: He's like under thirty years old. He's worth billions of dollars. 291 00:15:19,720 --> 00:15:21,400 Speaker 1: He's the smartest guy that we leave all his money 292 00:15:21,440 --> 00:15:24,720 Speaker 1: to charity. Now he's meeting with presidents and political leaders 293 00:15:24,760 --> 00:15:28,240 Speaker 1: and his influencing regulations and all these things. So let's 294 00:15:28,240 --> 00:15:30,720 Speaker 1: talk about this. So he started building out all these 295 00:15:30,800 --> 00:15:34,160 Speaker 1: UM companies and he committed millions of hundreds of millions 296 00:15:34,200 --> 00:15:39,360 Speaker 1: of dollars to that in May of two ft X 297 00:15:39,400 --> 00:15:42,920 Speaker 1: CEO Sam Bankman Fried has warned that more crypto exchanges 298 00:15:42,960 --> 00:15:46,880 Speaker 1: are headed towards insolvency, but there yet to be exposed. 299 00:15:46,920 --> 00:15:50,680 Speaker 1: So he's saying, hey, look, there's way more crypto exchanges 300 00:15:50,680 --> 00:15:53,320 Speaker 1: that are going to be insolvent or bankrupt, right, but 301 00:15:53,440 --> 00:15:57,240 Speaker 1: we just haven't found that yet. Um crypto billionaire has 302 00:15:57,280 --> 00:15:59,840 Speaker 1: recently provided some hefty loans to bell at a number 303 00:15:59,840 --> 00:16:01,960 Speaker 1: of struggling crypto firm so he, like I said, he 304 00:16:02,000 --> 00:16:06,120 Speaker 1: was bailing him out. He was titled cryptos bailout King. 305 00:16:06,280 --> 00:16:08,640 Speaker 1: People are starting to think like the Federal Reserve is 306 00:16:08,640 --> 00:16:11,840 Speaker 1: meant to backstop the banks, and maybe f t X 307 00:16:11,960 --> 00:16:14,920 Speaker 1: and Sam Bankman freed, which will call SPF moving forward, 308 00:16:15,320 --> 00:16:18,160 Speaker 1: SPF and f t X will be like the Federal Reserve, 309 00:16:18,200 --> 00:16:20,520 Speaker 1: They're going to bail out the crypto exchanges. It's kind 310 00:16:20,520 --> 00:16:24,480 Speaker 1: of the same thing, right, Not really, um, he said, 311 00:16:24,560 --> 00:16:27,240 Speaker 1: quote there are companies that are basically too far gone 312 00:16:27,520 --> 00:16:30,400 Speaker 1: and it's not practical to back stop them for reasons 313 00:16:30,440 --> 00:16:33,800 Speaker 1: like a substantial hole in the balance sheet. So he's like, look, um, 314 00:16:33,880 --> 00:16:35,680 Speaker 1: we're we we bailed out a few of these companies, 315 00:16:35,760 --> 00:16:38,320 Speaker 1: but there's way more that are way worse and we're 316 00:16:38,320 --> 00:16:40,520 Speaker 1: just not gonna do him. He bailed out f t 317 00:16:40,760 --> 00:16:45,120 Speaker 1: X and f SPF bailed out UM Block five million 318 00:16:45,160 --> 00:16:49,520 Speaker 1: dollar revolving line of credit. Uh, the quantitative trading firm Alameda, 319 00:16:49,640 --> 00:16:51,520 Speaker 1: remember that name, We're gonna come back to it, committed 320 00:16:51,520 --> 00:16:56,880 Speaker 1: five million of financing Voider Digital UM In May, Bankman 321 00:16:56,920 --> 00:17:01,360 Speaker 1: Freed purchased a stake in robin Hood, and they also 322 00:17:01,360 --> 00:17:04,680 Speaker 1: acquired Canadian crypto trading platform bit Vote, as well as 323 00:17:04,720 --> 00:17:07,919 Speaker 1: in Bed Financial Technologies. They're buying all these things up 324 00:17:08,040 --> 00:17:13,440 Speaker 1: left and right. Okay, But then in July, SPF says 325 00:17:13,520 --> 00:17:16,800 Speaker 1: that f t X has up to two billion dollars 326 00:17:16,840 --> 00:17:19,719 Speaker 1: for further billouts. He says that f t X has 327 00:17:19,760 --> 00:17:22,720 Speaker 1: a few billion on hand to continue assisting in struggling firms. 328 00:17:22,720 --> 00:17:26,520 Speaker 1: According to a Reuter's article, um but he said that 329 00:17:26,560 --> 00:17:30,000 Speaker 1: he felt the worst liquidity crisis were now in the past. 330 00:17:30,080 --> 00:17:32,160 Speaker 1: So hey, I think we're past the worst of it. 331 00:17:32,320 --> 00:17:34,520 Speaker 1: We did our best, We bailed out these companies, and 332 00:17:34,720 --> 00:17:36,360 Speaker 1: you know, by the way, we got an extra two 333 00:17:36,359 --> 00:17:38,879 Speaker 1: billion dollars laying around if you want us to use anymore. 334 00:17:39,240 --> 00:17:41,240 Speaker 1: But this is only the beginning, and it gets so 335 00:17:41,400 --> 00:17:43,040 Speaker 1: much better. And like I said, you need to understand 336 00:17:43,080 --> 00:17:46,119 Speaker 1: what's happening here, because it really is what's happening in 337 00:17:46,119 --> 00:17:50,120 Speaker 1: the United States and Japan and every everywhere for that matter. 338 00:17:50,359 --> 00:17:51,840 Speaker 1: You're listening, if you're just tuning and you're listening to 339 00:17:51,880 --> 00:17:55,119 Speaker 1: the Mark Moas Show breaking down the Decentralized Revolution, and 340 00:17:55,160 --> 00:17:58,560 Speaker 1: I'm explaining how f t X just fell from grace 341 00:17:58,640 --> 00:18:00,919 Speaker 1: it crashed hopefully didn't losing money on the way, and 342 00:18:00,960 --> 00:18:02,560 Speaker 1: how it's coming for the rest of the world. Like 343 00:18:02,600 --> 00:18:04,040 Speaker 1: I'm gonna break this whole thing down. You don't want 344 00:18:04,080 --> 00:18:06,120 Speaker 1: to miss it. Super interesting. I gotta go through it fast. 345 00:18:06,160 --> 00:18:08,480 Speaker 1: I'll be right back. Don't go away, all right, Welcome back. 346 00:18:08,520 --> 00:18:10,040 Speaker 1: If you're just tuning in, you're listening to the Mark 347 00:18:10,160 --> 00:18:12,960 Speaker 1: Moss Show, I'm in the middle of breaking down how 348 00:18:13,000 --> 00:18:16,639 Speaker 1: the second largest cryptocurrency exchange just blew up. Sam Bankman 349 00:18:16,720 --> 00:18:20,520 Speaker 1: freed we call him SPF and his exchange f t X, 350 00:18:21,119 --> 00:18:23,399 Speaker 1: and they absolutely crashed. So he was the savior. He 351 00:18:23,400 --> 00:18:26,960 Speaker 1: bailled everybody out, um and uh he said, hey, we 352 00:18:27,000 --> 00:18:29,359 Speaker 1: have a few billion dollars two billion dollars on hand, 353 00:18:29,480 --> 00:18:31,240 Speaker 1: just in case anyone else wants to get billed out. 354 00:18:31,359 --> 00:18:33,560 Speaker 1: But we think the worst is behind us. All right. 355 00:18:33,600 --> 00:18:37,240 Speaker 1: That was July. Now in this is important. So October, 356 00:18:38,800 --> 00:18:42,440 Speaker 1: just a couple of weeks ago, SPF Sam Bankman Freed, 357 00:18:42,480 --> 00:18:46,320 Speaker 1: the founder of crypto exchange f t X, said, quote 358 00:18:46,560 --> 00:18:52,399 Speaker 1: no more bailouts. Interesting, So um, the SPF and f 359 00:18:52,440 --> 00:18:55,960 Speaker 1: t X are looking to raise fresh funding. He clarified 360 00:18:56,160 --> 00:18:59,280 Speaker 1: that the company f t X will no longer pursue 361 00:18:59,359 --> 00:19:03,359 Speaker 1: bailout acquisitions. They're not gonna do that anymore. On twenty 362 00:19:03,760 --> 00:19:06,399 Speaker 1: sam Bankman Freed said f t X is planning a 363 00:19:06,480 --> 00:19:09,440 Speaker 1: new funding round to raise capital. They wanted to raise 364 00:19:09,480 --> 00:19:13,320 Speaker 1: a billion dollars of capital at a thirty two billion 365 00:19:13,400 --> 00:19:19,040 Speaker 1: dollar valuation. So October twenty five, a few weeks ago, 366 00:19:19,400 --> 00:19:22,280 Speaker 1: they were raising a billion dollars at a thirty two 367 00:19:22,600 --> 00:19:27,320 Speaker 1: billion dollar valuation. Well then November two, a couple of 368 00:19:27,320 --> 00:19:32,399 Speaker 1: weeks later, coin base breaks an article and says, divisions 369 00:19:32,440 --> 00:19:35,639 Speaker 1: in Sam Bankman Freed's crypto empire, which is Alameda and 370 00:19:35,760 --> 00:19:39,720 Speaker 1: ft X blur on his trading titan Alameda's balance sheet. 371 00:19:39,840 --> 00:19:44,000 Speaker 1: So um, what happens is he owned two companies and 372 00:19:44,080 --> 00:19:47,200 Speaker 1: let me let me break down how this works, how insidious? 373 00:19:47,200 --> 00:19:50,280 Speaker 1: This is? All right, I'm gonna try to be a 374 00:19:50,280 --> 00:19:52,399 Speaker 1: little bit vague, but i'm gonna give you some examples. 375 00:19:52,800 --> 00:19:56,199 Speaker 1: So f t X is an exchange where you can 376 00:19:56,240 --> 00:19:58,760 Speaker 1: go exchange one crypto token for another. You can exchange 377 00:19:58,760 --> 00:20:00,760 Speaker 1: your bitcoin for a theory m or for Cardana or 378 00:20:00,760 --> 00:20:03,119 Speaker 1: Salona or whatever any of the other twenty tokens they 379 00:20:03,119 --> 00:20:06,040 Speaker 1: have on their all. Right, then he created another company 380 00:20:06,080 --> 00:20:10,280 Speaker 1: called Alameda, and Alameda is what's known as a market maker. 381 00:20:12,560 --> 00:20:15,679 Speaker 1: Remember that markets are supposed to be free. Remember that 382 00:20:15,800 --> 00:20:18,399 Speaker 1: values are supposed to be set by the free market. 383 00:20:18,760 --> 00:20:21,800 Speaker 1: But what market makers do is they get into the 384 00:20:21,840 --> 00:20:26,000 Speaker 1: market and they buy and sell to push a certain valuation. 385 00:20:26,080 --> 00:20:29,159 Speaker 1: So here's how it works. Um a market cap of 386 00:20:29,280 --> 00:20:33,040 Speaker 1: Tesla stock or Amazon stock, or bitcoin or f t 387 00:20:33,200 --> 00:20:36,760 Speaker 1: t token, it's all the same. You have the price 388 00:20:36,800 --> 00:20:39,760 Speaker 1: of the stock or the price of the token times 389 00:20:40,160 --> 00:20:42,560 Speaker 1: the total amount of stock or tokens that are available 390 00:20:42,640 --> 00:20:45,280 Speaker 1: gives you a market cap. So if I created marks 391 00:20:45,320 --> 00:20:48,600 Speaker 1: token out of thin air, I created ten of them, 392 00:20:48,680 --> 00:20:52,960 Speaker 1: and one person buys one of those tokens for a dollar, 393 00:20:53,640 --> 00:20:56,080 Speaker 1: then I would say the market cap of Marks tokens 394 00:20:56,160 --> 00:20:59,800 Speaker 1: is now ten dollars. Someone bought one for a dollar, 395 00:21:00,480 --> 00:21:02,600 Speaker 1: and there's ten of them in existence as ten dollars. 396 00:21:02,920 --> 00:21:05,879 Speaker 1: Now what happens is who bought that one token for 397 00:21:05,920 --> 00:21:09,480 Speaker 1: a dollar? Well? What if it was my buddy over 398 00:21:09,560 --> 00:21:12,680 Speaker 1: here known as a market maker. So there's ten tokens, 399 00:21:12,720 --> 00:21:14,800 Speaker 1: and they're going to buy and sell these tokens to 400 00:21:14,840 --> 00:21:16,920 Speaker 1: each other. They're gonna buy it for a dollar, sell 401 00:21:16,920 --> 00:21:18,240 Speaker 1: it to the other guy for a dollar, fifty, the 402 00:21:18,240 --> 00:21:19,680 Speaker 1: next guy for two dollars, up to this guy for 403 00:21:19,720 --> 00:21:21,920 Speaker 1: three dollars to five dollars, ten dollars. Now the next 404 00:21:21,920 --> 00:21:23,360 Speaker 1: thing you know, they're buying them for buying and sell 405 00:21:23,400 --> 00:21:25,919 Speaker 1: them for a million dollars per token. Now I have 406 00:21:25,920 --> 00:21:28,280 Speaker 1: ten tokens times a million dollars each, and now my 407 00:21:28,359 --> 00:21:32,400 Speaker 1: market cap is worth ten million dollars. But it wasn't 408 00:21:32,440 --> 00:21:35,040 Speaker 1: done by the free market. It was done by the 409 00:21:35,080 --> 00:21:38,399 Speaker 1: market makers. Now, the market makers, of course, get the 410 00:21:38,480 --> 00:21:40,800 Speaker 1: free market to move right, So the market makers start 411 00:21:40,840 --> 00:21:44,119 Speaker 1: trading it. But when it goes on to an exchange, 412 00:21:44,440 --> 00:21:47,159 Speaker 1: the other people on the exchange are watching this token 413 00:21:47,200 --> 00:21:49,399 Speaker 1: go higher, higher, or higher or higher higher, So then 414 00:21:49,440 --> 00:21:52,959 Speaker 1: the free market jumps in. Right Now, where is this 415 00:21:53,040 --> 00:21:55,879 Speaker 1: free market of buyers? Oh, that's right, it's on his 416 00:21:56,000 --> 00:21:59,639 Speaker 1: other exchange. It's on FTX. So let me give you 417 00:21:59,680 --> 00:22:02,679 Speaker 1: an exam ample. Um, I know two people. I'm not 418 00:22:02,680 --> 00:22:06,560 Speaker 1: going to say who they are. Um, and they basically 419 00:22:06,680 --> 00:22:09,560 Speaker 1: last year went to f t X, went to SPF 420 00:22:09,560 --> 00:22:13,000 Speaker 1: and said, hey, uh, we want to build our own token. 421 00:22:13,080 --> 00:22:16,480 Speaker 1: What token do you think we need for the Salona blockchain? 422 00:22:17,000 --> 00:22:19,080 Speaker 1: And SPF said, uh, you know what would be really 423 00:22:19,080 --> 00:22:21,000 Speaker 1: good is if we had this type of a token. 424 00:22:21,200 --> 00:22:23,600 Speaker 1: I'm not going to out these people because I know them. Uh. 425 00:22:23,680 --> 00:22:25,119 Speaker 1: He said, if we had this type of token to 426 00:22:25,200 --> 00:22:27,200 Speaker 1: this kind of thing, that would be worth pretty good. 427 00:22:27,400 --> 00:22:30,160 Speaker 1: And they said great, Um, if we build that, well 428 00:22:30,200 --> 00:22:32,800 Speaker 1: you listed on f t X. He said, well, if 429 00:22:32,840 --> 00:22:36,639 Speaker 1: if Alameda, the market maker, my other company, if they'll 430 00:22:36,680 --> 00:22:40,120 Speaker 1: take that project on, then yes, f t X will 431 00:22:40,160 --> 00:22:42,359 Speaker 1: list the token. Okay, great, would you set up as 432 00:22:42,400 --> 00:22:44,040 Speaker 1: a meeting? Oh? Sure, So I set up a meeting 433 00:22:44,080 --> 00:22:46,359 Speaker 1: with Alameda. They said, hey, Alameda, we talked to SPF. 434 00:22:46,400 --> 00:22:48,240 Speaker 1: He said, if we build this project, you're listed, and 435 00:22:48,280 --> 00:22:52,800 Speaker 1: Alameda says, sure, we'll take it. So these guys, this 436 00:22:52,880 --> 00:22:55,480 Speaker 1: guy I know, went and hired a couple of developers 437 00:22:55,480 --> 00:22:59,280 Speaker 1: on up work or whatever and built out this whatever 438 00:22:59,480 --> 00:23:02,879 Speaker 1: protocol Salona Token, and within a couple of months and 439 00:23:02,920 --> 00:23:05,320 Speaker 1: went back to Alameda and said, hey, okay, we built 440 00:23:05,359 --> 00:23:07,160 Speaker 1: this project and we have it and do you want 441 00:23:07,160 --> 00:23:09,320 Speaker 1: to take it? And they said sure. So, Um, I 442 00:23:09,359 --> 00:23:10,840 Speaker 1: forget the exact details, and I don't want to give 443 00:23:10,840 --> 00:23:14,600 Speaker 1: you the exact specifics either, but basically they said, we 444 00:23:14,640 --> 00:23:17,600 Speaker 1: want thirty percent of the tokens you created. There was 445 00:23:17,640 --> 00:23:19,840 Speaker 1: like a hundred million tokens that they created out of 446 00:23:20,040 --> 00:23:23,199 Speaker 1: thin air. So he created this project to be this 447 00:23:23,400 --> 00:23:27,040 Speaker 1: token on Salona created out of thin air. Um, we 448 00:23:27,080 --> 00:23:30,640 Speaker 1: have a hundred million tokens and we're gonna give Alameda 449 00:23:31,200 --> 00:23:34,119 Speaker 1: thirty million of those dirty percent of them in exchange 450 00:23:34,160 --> 00:23:38,960 Speaker 1: for twelve million dollars cash upfront. Plus we're gonna get 451 00:23:38,960 --> 00:23:42,080 Speaker 1: other tokens are gonna give us, and we're still going 452 00:23:42,119 --> 00:23:46,560 Speaker 1: to keep seventy of the tokens. So then Alameda and 453 00:23:46,640 --> 00:23:49,520 Speaker 1: venture capitalists love this because they just got thirty million 454 00:23:49,560 --> 00:23:53,600 Speaker 1: tokens up front. They automatically turn around and sell them 455 00:23:53,640 --> 00:23:56,720 Speaker 1: for three times, five times, ten times higher than they 456 00:23:56,760 --> 00:24:00,000 Speaker 1: just paid for it, so they instually make money. They 457 00:23:59,800 --> 00:24:02,840 Speaker 1: say it to venture capitalists and then they set the 458 00:24:02,880 --> 00:24:06,440 Speaker 1: market and it gets listed on f t X, their 459 00:24:06,520 --> 00:24:09,919 Speaker 1: other company, so alamedas that's the price of this in 460 00:24:10,000 --> 00:24:12,159 Speaker 1: the market by buying and selling it, and then on 461 00:24:12,320 --> 00:24:14,080 Speaker 1: ft X they release it to the public with this 462 00:24:14,200 --> 00:24:17,879 Speaker 1: new found price. The public thinks that this is the 463 00:24:17,880 --> 00:24:21,760 Speaker 1: market valuation because the market maker has artificially gotten the 464 00:24:21,760 --> 00:24:24,280 Speaker 1: price there. And then f t X makes all the 465 00:24:24,320 --> 00:24:28,359 Speaker 1: money from you, the public buying and selling these tokens. Now, 466 00:24:29,280 --> 00:24:31,760 Speaker 1: these two projects both built on Salana. Two different people 467 00:24:31,760 --> 00:24:36,960 Speaker 1: I know UM launched these tokens and then they walk away. 468 00:24:37,160 --> 00:24:39,840 Speaker 1: They hired some developers on Upward, they built the token, 469 00:24:40,280 --> 00:24:43,200 Speaker 1: they deliver it over to Alameda and f t X, 470 00:24:43,240 --> 00:24:46,320 Speaker 1: and then dust their hands off and walk away. Because 471 00:24:46,680 --> 00:24:51,240 Speaker 1: it's a decentralized protocol. It's not a company, it's not 472 00:24:51,280 --> 00:24:54,600 Speaker 1: a service. They don't need employees, there's nothing to do. 473 00:24:54,680 --> 00:24:56,800 Speaker 1: They're not managing that, they're not growing it. It's just 474 00:24:56,800 --> 00:24:58,679 Speaker 1: a protocol. We just built this thing, and here you go, 475 00:24:58,760 --> 00:25:03,000 Speaker 1: and we walk away. And they got millions of dollars, 476 00:25:03,040 --> 00:25:06,639 Speaker 1: tens of millions dollars in their pocket. Up front. Alameda, 477 00:25:06,720 --> 00:25:09,920 Speaker 1: the market maker sold those of the tokens, thirty million 478 00:25:09,960 --> 00:25:13,199 Speaker 1: tokens at three, five, ten times what they paid and 479 00:25:13,240 --> 00:25:15,199 Speaker 1: then f t X makes all the money from you, 480 00:25:16,080 --> 00:25:19,720 Speaker 1: the public buying and selling these tokens, which is a 481 00:25:19,720 --> 00:25:23,639 Speaker 1: bunch of worthless garbage. Now you think that it's life changing, 482 00:25:23,680 --> 00:25:27,240 Speaker 1: it's world changing. This company built this page, this web 483 00:25:27,320 --> 00:25:29,280 Speaker 1: this white paper, and they built this website and this 484 00:25:29,320 --> 00:25:31,120 Speaker 1: new protocol they built is going to change the way 485 00:25:31,160 --> 00:25:33,160 Speaker 1: that we interact with each other. And it's gonna become 486 00:25:33,200 --> 00:25:35,240 Speaker 1: so valuable. And look how much money I'm gonna make. 487 00:25:35,680 --> 00:25:40,840 Speaker 1: Little do you know that it's vapor where it's literally nothing. 488 00:25:41,359 --> 00:25:43,840 Speaker 1: Literally somebody made this in six months with a bunch 489 00:25:43,840 --> 00:25:46,760 Speaker 1: of remote people from overseas that just built it, and 490 00:25:46,800 --> 00:25:48,120 Speaker 1: they sold it to you and they pocket a bunch 491 00:25:48,119 --> 00:25:50,000 Speaker 1: of money. And now fts is making much of money 492 00:25:50,000 --> 00:25:52,040 Speaker 1: for your buying and selling it. But there's nothing there. 493 00:25:52,800 --> 00:25:55,520 Speaker 1: It never will be anything there. There's no team there, 494 00:25:55,600 --> 00:25:58,840 Speaker 1: there's no there's no no development going on there. This 495 00:25:59,080 --> 00:26:01,320 Speaker 1: is what as as Sam Bankman freed f t X 496 00:26:01,320 --> 00:26:04,280 Speaker 1: and what Alameda are doing. This is the model. Now 497 00:26:05,800 --> 00:26:07,440 Speaker 1: where did they get all the money to do this? 498 00:26:08,080 --> 00:26:12,440 Speaker 1: That's the other part. So f t X, the cryptocurrency 499 00:26:12,480 --> 00:26:15,800 Speaker 1: casino the exchange created their own token called f t 500 00:26:15,800 --> 00:26:19,040 Speaker 1: t now if I buy this f t T token 501 00:26:19,359 --> 00:26:23,159 Speaker 1: that allows me to have a discount on my trading fees. 502 00:26:23,560 --> 00:26:26,119 Speaker 1: It's sort of like a like a club, right, like 503 00:26:26,160 --> 00:26:27,720 Speaker 1: a rewards, Like when you go to the grocery store 504 00:26:27,720 --> 00:26:28,920 Speaker 1: and you sign up the grocery store and they give 505 00:26:28,920 --> 00:26:30,320 Speaker 1: you a discount when you put your phone number in. 506 00:26:30,400 --> 00:26:33,080 Speaker 1: It's like that. So if I buy the token, then 507 00:26:33,119 --> 00:26:35,520 Speaker 1: they give me this kind of my trading fees. But 508 00:26:35,880 --> 00:26:38,000 Speaker 1: most people bought this token because they thought it would 509 00:26:38,080 --> 00:26:40,600 Speaker 1: go up in value. So they create a bunch of 510 00:26:40,640 --> 00:26:45,440 Speaker 1: these tokens out of thin air. They use their market 511 00:26:45,480 --> 00:26:49,120 Speaker 1: maker company to set a price of those tokens, create 512 00:26:49,119 --> 00:26:54,200 Speaker 1: a valuation, and then they start selling them in the market. Now, 513 00:26:54,359 --> 00:26:57,679 Speaker 1: in March of this year, when Sam Bankman Freed was 514 00:26:57,720 --> 00:27:01,640 Speaker 1: belling out the entire industry, that f t T token, 515 00:27:02,200 --> 00:27:08,159 Speaker 1: how to valuation a market cap of over seven billion dollars. 516 00:27:09,640 --> 00:27:12,359 Speaker 1: Today it's worth almost nothing. I'm gonna finish breaking this 517 00:27:12,440 --> 00:27:14,960 Speaker 1: thing down for you. Show you what happened, how this 518 00:27:15,119 --> 00:27:17,959 Speaker 1: actually happened within a matter of like less than forty 519 00:27:17,960 --> 00:27:20,680 Speaker 1: eight hours, it went down to nothing. What's going to 520 00:27:20,760 --> 00:27:23,199 Speaker 1: happen next? And how this is a microcosm of what's 521 00:27:23,200 --> 00:27:25,080 Speaker 1: happening in the greater financial system. You're listening to the 522 00:27:25,080 --> 00:27:27,440 Speaker 1: Marks Show if you're just tuning in, trying to take 523 00:27:27,480 --> 00:27:30,359 Speaker 1: these complex subjects, make them easy to understand and extrapolate 524 00:27:30,400 --> 00:27:32,439 Speaker 1: so you can understand what's going on in the financial system. 525 00:27:32,720 --> 00:27:34,520 Speaker 1: Don't go away, you don't want to miss what's coming 526 00:27:34,560 --> 00:27:36,959 Speaker 1: up next. I'll be right back, all right, welcome back. 527 00:27:37,000 --> 00:27:38,719 Speaker 1: If you're just tune in, you are listening to the 528 00:27:38,720 --> 00:27:42,080 Speaker 1: Mark Moss Show. We're talking about the blow up in 529 00:27:42,080 --> 00:27:45,959 Speaker 1: the cryptocurrency market. The second largest cryptocurrency exchange f t X, 530 00:27:46,400 --> 00:27:49,240 Speaker 1: was just taken out by their number one competitor, Finance, 531 00:27:49,760 --> 00:27:52,119 Speaker 1: And it's really just a microcosm of what's going on 532 00:27:52,200 --> 00:27:54,720 Speaker 1: in the greater financial system and what's happening in Japan 533 00:27:54,960 --> 00:27:58,080 Speaker 1: and Europe and even here in the United States. So 534 00:27:59,000 --> 00:28:00,560 Speaker 1: I broke it all down. If you miss that, don't worry, 535 00:28:00,600 --> 00:28:01,920 Speaker 1: as I got your back. You can check me out 536 00:28:01,960 --> 00:28:04,679 Speaker 1: on YouTube. Just search Market Disruptors. These go on on 537 00:28:04,680 --> 00:28:06,840 Speaker 1: that channel. You can watch it there or on your 538 00:28:06,840 --> 00:28:09,359 Speaker 1: favorite podcast player. Just search Mark Moss Show. You'll find that. 539 00:28:09,400 --> 00:28:12,200 Speaker 1: If you want to catch up to where rat so anyway, 540 00:28:12,400 --> 00:28:14,879 Speaker 1: the f t X token or the f t T token, 541 00:28:14,920 --> 00:28:17,399 Speaker 1: which was again created out of thin air, had a 542 00:28:17,440 --> 00:28:21,399 Speaker 1: seven billion dollar valuation in March of this year. But 543 00:28:21,480 --> 00:28:26,280 Speaker 1: what happened is is uh just a few days ago. Uh, well, 544 00:28:26,680 --> 00:28:30,960 Speaker 1: the story broke on coin desk in November. I got 545 00:28:31,000 --> 00:28:32,840 Speaker 1: I got side checked here. So in November, this story 546 00:28:32,880 --> 00:28:37,720 Speaker 1: broke on on on coin desk and they said that 547 00:28:39,360 --> 00:28:42,320 Speaker 1: these two companies f t X the exchange and Alameter 548 00:28:42,400 --> 00:28:47,880 Speaker 1: Research the market maker. Um, they're both giants in the space. Uh, 549 00:28:47,920 --> 00:28:52,280 Speaker 1: there's supposedly two separate businesses, but they actually have the 550 00:28:52,280 --> 00:28:56,560 Speaker 1: same asset on their books. The balance sheet of Alameda 551 00:28:56,640 --> 00:28:58,280 Speaker 1: where they got all the money to go fund all 552 00:28:58,280 --> 00:28:59,960 Speaker 1: these projects. Like I was just breaking down to you 553 00:29:00,000 --> 00:29:02,040 Speaker 1: and now bill out all these other products. The balance 554 00:29:02,080 --> 00:29:04,959 Speaker 1: sheet shows that it's full of the f t X token, 555 00:29:05,080 --> 00:29:07,840 Speaker 1: the f t T token that was created at a 556 00:29:07,880 --> 00:29:11,920 Speaker 1: thin air and given evaluation by the market maker. Mm hmm. 557 00:29:12,120 --> 00:29:15,120 Speaker 1: It's kind of dirty. And what what what it shows 558 00:29:15,160 --> 00:29:20,960 Speaker 1: when you dig in is that they have more assets 559 00:29:21,000 --> 00:29:22,960 Speaker 1: on their books of this token f t T token, 560 00:29:23,120 --> 00:29:27,000 Speaker 1: then the token is even worth. So they were claiming 561 00:29:27,440 --> 00:29:32,440 Speaker 1: about eight billion, eight billion dollars, but the valuation of 562 00:29:32,480 --> 00:29:35,880 Speaker 1: the token was less than that. The net equity in 563 00:29:35,920 --> 00:29:39,280 Speaker 1: the alimated business is actually fox f t X is own, 564 00:29:40,000 --> 00:29:44,280 Speaker 1: centrally controlled and printed out of thin air token. Wow. 565 00:29:45,840 --> 00:29:48,680 Speaker 1: Now they had other assets on their balance sheet, including 566 00:29:49,000 --> 00:29:53,040 Speaker 1: three point three seven billion of quote unquote crypto like 567 00:29:53,120 --> 00:29:55,080 Speaker 1: these other projects I told you about where they take 568 00:29:55,080 --> 00:29:59,080 Speaker 1: all these tokens, but it's basically vaporware. Large amounts of 569 00:29:59,080 --> 00:30:01,440 Speaker 1: the Salona block chains, they token two or nine two 570 00:30:01,440 --> 00:30:06,640 Speaker 1: million dollars of unlocked Salana, uh three million of locked Salana, 571 00:30:07,200 --> 00:30:11,960 Speaker 1: forty one million of Salona collateral, other tokens mentioned by name. 572 00:30:13,320 --> 00:30:15,320 Speaker 1: So basically just a bunch of garbage, that's what they had. 573 00:30:16,840 --> 00:30:19,560 Speaker 1: So all of a sudden, very quickly, everyone's like, whoa 574 00:30:19,640 --> 00:30:23,080 Speaker 1: wait a minute, Uh, I hold this token. They don't 575 00:30:23,120 --> 00:30:28,320 Speaker 1: have any money, the bank doesn't have my money. It's 576 00:30:28,320 --> 00:30:31,480 Speaker 1: called a bankrupt And so what happened is that that 577 00:30:31,480 --> 00:30:34,680 Speaker 1: that came out and binance, which is the largest crypto exchange, 578 00:30:35,200 --> 00:30:38,360 Speaker 1: said wait a minute, we're holding two billion dollars of 579 00:30:38,440 --> 00:30:43,360 Speaker 1: this token and it's not worth that. And so c 580 00:30:43,600 --> 00:30:49,760 Speaker 1: Z he's the owner of binance um he said that 581 00:30:50,080 --> 00:30:53,240 Speaker 1: quote as part of finances exit from FTX Equity last 582 00:30:53,320 --> 00:30:57,720 Speaker 1: year Binance received roughly two point one billion US dollar 583 00:30:57,880 --> 00:31:02,560 Speaker 1: equivalent in uh in in Binance USD stable point and 584 00:31:02,680 --> 00:31:06,360 Speaker 1: f t T the token. But due to recent revelations 585 00:31:06,360 --> 00:31:08,719 Speaker 1: that have come to light, we have decided decided to 586 00:31:08,800 --> 00:31:12,080 Speaker 1: liquidate any remaining f t T on our books. So 587 00:31:12,400 --> 00:31:14,240 Speaker 1: he's like, look, hey, we see what you did. You're 588 00:31:14,240 --> 00:31:17,520 Speaker 1: a giant Ponzi scheme scheme. You have no liquidity. We're 589 00:31:17,520 --> 00:31:19,040 Speaker 1: not going to hold us on our books. We're going 590 00:31:19,080 --> 00:31:20,760 Speaker 1: to get rid of it now. It's interesting about this 591 00:31:20,840 --> 00:31:23,040 Speaker 1: is that when you want to move that much more, 592 00:31:23,120 --> 00:31:24,560 Speaker 1: he says, we will try to do so in a 593 00:31:24,600 --> 00:31:28,200 Speaker 1: way that minimizes market impact. Due to market conditions and 594 00:31:28,240 --> 00:31:31,120 Speaker 1: limited liability, we expect this to take a few months 595 00:31:31,680 --> 00:31:35,040 Speaker 1: to complete. Well, when you're trying to liquidate a large position, 596 00:31:35,080 --> 00:31:37,240 Speaker 1: you're trying to do it privately. Typically you do it 597 00:31:37,280 --> 00:31:39,240 Speaker 1: what's called O T C over the counter because you 598 00:31:39,280 --> 00:31:41,040 Speaker 1: don't want to move the market so big buys or 599 00:31:41,080 --> 00:31:43,360 Speaker 1: big cells you do it over the counter. Otherwise what's 600 00:31:43,440 --> 00:31:46,080 Speaker 1: what's known as slippage happens and the price goes down 601 00:31:46,200 --> 00:31:49,880 Speaker 1: in value and so um. But he didn't do that. 602 00:31:49,920 --> 00:31:51,800 Speaker 1: He didn't do it quietly. Didn't do privately, he is marrect. 603 00:31:51,920 --> 00:31:53,760 Speaker 1: He announced it to the whole world what he was 604 00:31:53,800 --> 00:31:58,800 Speaker 1: gonna do, and very quickly everybody else realized, oh shoot, 605 00:31:59,240 --> 00:32:00,800 Speaker 1: if he's going to do, it's going to christ the 606 00:32:01,640 --> 00:32:04,080 Speaker 1: crash the price. How much am I holding and how 607 00:32:04,080 --> 00:32:05,800 Speaker 1: am I going to get my money out? And so 608 00:32:05,960 --> 00:32:10,320 Speaker 1: everybody ran for the fire exits at the exact same times. Now, 609 00:32:10,640 --> 00:32:13,400 Speaker 1: Alameda and ft X tried to stem that, and they 610 00:32:13,440 --> 00:32:15,680 Speaker 1: publicly they went back and forth. The two CEOs went 611 00:32:15,680 --> 00:32:17,280 Speaker 1: back and forth, and they said, Hey, if you're looking 612 00:32:17,320 --> 00:32:20,000 Speaker 1: to minimize the market impact on your token sales ft 613 00:32:20,080 --> 00:32:22,440 Speaker 1: T cells, let us buy it from you. We'll buy 614 00:32:22,480 --> 00:32:24,680 Speaker 1: it all from you today at twenty two bucks. No. 615 00:32:24,800 --> 00:32:27,920 Speaker 1: It's interesting is when they gave out that number twenty two, 616 00:32:28,480 --> 00:32:33,160 Speaker 1: they basically told the market where um where the where 617 00:32:33,200 --> 00:32:36,760 Speaker 1: the support line was, where their liquidation price was cz from. 618 00:32:36,800 --> 00:32:40,640 Speaker 1: Binns had no response, he didn't say anything. But by 619 00:32:40,680 --> 00:32:43,080 Speaker 1: telling everyone he was going to start dumping the token 620 00:32:43,080 --> 00:32:46,680 Speaker 1: on the open market, it started crashing it. So it 621 00:32:46,800 --> 00:32:49,040 Speaker 1: showed that he wasn't really trying to get his money 622 00:32:49,080 --> 00:32:51,560 Speaker 1: out so much as he was really trying to attack 623 00:32:51,600 --> 00:32:54,719 Speaker 1: the company, which of course is his number one competitor. 624 00:32:55,680 --> 00:32:58,000 Speaker 1: And I'll also say that Sam Bankman freedom f t 625 00:32:58,160 --> 00:33:00,840 Speaker 1: X is hostile towards the crypto ncy market. And I 626 00:33:00,880 --> 00:33:04,400 Speaker 1: say hostile because Sam Bankman for d SPF is is 627 00:33:04,960 --> 00:33:10,920 Speaker 1: vocal about trying to impose regulations, honors regulations, in my opinion, 628 00:33:11,000 --> 00:33:14,920 Speaker 1: horrible regulations. Pretty much all regulations are horrible, but impose 629 00:33:15,000 --> 00:33:18,840 Speaker 1: these on the cryptocurrency space. So CZ probably not only 630 00:33:18,880 --> 00:33:23,080 Speaker 1: is he my competition, but he's also harmful for the 631 00:33:23,120 --> 00:33:25,520 Speaker 1: space overall. So how about all this take him out. 632 00:33:26,160 --> 00:33:29,000 Speaker 1: This is known as a speculative attack. It's exactly what 633 00:33:29,080 --> 00:33:31,040 Speaker 1: George Soros did to the Bank of England, which is 634 00:33:31,040 --> 00:33:35,160 Speaker 1: why I started with that. UM. Now since that's happened, 635 00:33:36,240 --> 00:33:38,280 Speaker 1: we can see that the price of f f t 636 00:33:38,400 --> 00:33:41,400 Speaker 1: T token has completely plunged. Like I said, UM, he 637 00:33:41,480 --> 00:33:43,320 Speaker 1: offered to buy it at the twenty or they they said, hey, 638 00:33:43,320 --> 00:33:46,200 Speaker 1: we'll sell you the price cap, which is where they 639 00:33:46,200 --> 00:33:49,320 Speaker 1: were trying to defend, and he said, no, no way, 640 00:33:49,320 --> 00:33:53,960 Speaker 1: it's not gonna happen. And within literally days since yes 641 00:33:54,920 --> 00:33:58,240 Speaker 1: on on eleven seven, on the seventh it was a 642 00:33:58,240 --> 00:34:01,720 Speaker 1: three billion dollar valuation, and on eleven eight it's a 643 00:34:01,800 --> 00:34:06,520 Speaker 1: five hundred million dollar valuation just completely demolished. Now I said, 644 00:34:06,600 --> 00:34:08,880 Speaker 1: this is also happening in the rest of the world, 645 00:34:09,440 --> 00:34:12,080 Speaker 1: all right, So this is a small example. It's like 646 00:34:12,120 --> 00:34:13,800 Speaker 1: a toy example of what's happening in the rest of 647 00:34:13,800 --> 00:34:15,720 Speaker 1: the world. So let's look at the Bank of Japan. 648 00:34:16,160 --> 00:34:19,640 Speaker 1: The Bank of Japan is doing the same thing. They 649 00:34:19,680 --> 00:34:23,040 Speaker 1: have printed money. They've made the en out of thin air. 650 00:34:23,239 --> 00:34:25,960 Speaker 1: Now the market collectively values the en, and the country 651 00:34:26,000 --> 00:34:28,799 Speaker 1: of Japan uses the en. That's their currency, and they've 652 00:34:28,800 --> 00:34:31,640 Speaker 1: assigned value to that. But the problem is that they're 653 00:34:31,680 --> 00:34:34,839 Speaker 1: printing so much of it. It's pushing the valuation of 654 00:34:34,880 --> 00:34:37,319 Speaker 1: the end further and further down, which means prices are 655 00:34:37,320 --> 00:34:40,560 Speaker 1: getting higher and higher. Now what's happening is that their 656 00:34:40,600 --> 00:34:43,960 Speaker 1: their currency is crashing so fast, it's losing value so 657 00:34:44,000 --> 00:34:47,600 Speaker 1: fast that Japan is doing the same thing that FTX did. 658 00:34:47,960 --> 00:34:51,000 Speaker 1: They're buying their own currency to keep it propped up, 659 00:34:51,040 --> 00:34:54,000 Speaker 1: just like the Bank of England to hold off George Soros. 660 00:34:54,040 --> 00:34:56,840 Speaker 1: So the speculators are selling it short, they're trying to 661 00:34:56,960 --> 00:34:58,640 Speaker 1: buy it to prop it back up. So the Bank 662 00:34:58,680 --> 00:35:02,080 Speaker 1: of Japan is actively doing the right Now. The problem 663 00:35:02,200 --> 00:35:05,000 Speaker 1: is is that at some point they're going to run 664 00:35:05,000 --> 00:35:07,080 Speaker 1: out of assets to continue to buy it up, and 665 00:35:07,120 --> 00:35:09,279 Speaker 1: at some point the people are going to go, look this, 666 00:35:09,440 --> 00:35:11,359 Speaker 1: we don't want to hold this token. We don't want 667 00:35:11,360 --> 00:35:13,799 Speaker 1: to hold this yen anymore. We're going to sell it 668 00:35:13,840 --> 00:35:18,560 Speaker 1: for something else, dollars or bitcoin or house or stock 669 00:35:18,680 --> 00:35:21,440 Speaker 1: or anything. But we're not going to hold this yen anymore, 670 00:35:22,080 --> 00:35:23,400 Speaker 1: just like nobody wants to hold the f t T 671 00:35:23,480 --> 00:35:28,480 Speaker 1: token today. Now. Um, the Japan is just kind of 672 00:35:28,480 --> 00:35:30,239 Speaker 1: like in the same situation as f t X, where 673 00:35:30,280 --> 00:35:33,560 Speaker 1: they can't print dollars. They can only print their own currency. 674 00:35:33,600 --> 00:35:35,960 Speaker 1: So ft X couldn make more ft T tokens, but 675 00:35:36,040 --> 00:35:39,120 Speaker 1: nobody wants them, just like Japan can make more yen, 676 00:35:39,760 --> 00:35:44,080 Speaker 1: but if nobody wants them, it doesn't matter. They're not dollars. Well, 677 00:35:44,280 --> 00:35:46,040 Speaker 1: the FED is also in the same situation in the 678 00:35:46,080 --> 00:35:49,880 Speaker 1: United States. The FED is also seeing the value of 679 00:35:49,880 --> 00:35:52,840 Speaker 1: the dollar going down. It's buying you less goods and 680 00:35:52,880 --> 00:35:55,080 Speaker 1: services than it did before. Remember, we don't want money. 681 00:35:55,360 --> 00:35:57,640 Speaker 1: What we want is goods and services. I want energy, 682 00:35:57,719 --> 00:36:00,279 Speaker 1: I want heat for my house, I want asked for 683 00:36:00,360 --> 00:36:02,239 Speaker 1: my car, and I want food for my family. I 684 00:36:02,320 --> 00:36:05,440 Speaker 1: want that. Money is only the proxy. Now, if the 685 00:36:05,520 --> 00:36:08,279 Speaker 1: value of the dollar continues to fall, the government can 686 00:36:08,320 --> 00:36:10,440 Speaker 1: print more of those dollars to try to keep it 687 00:36:10,480 --> 00:36:13,080 Speaker 1: propped up. But what they can't do is print more 688 00:36:13,239 --> 00:36:17,000 Speaker 1: energy or food. And at some point, just like what 689 00:36:17,040 --> 00:36:19,600 Speaker 1: happened to f t T, the valuation of the dollar 690 00:36:19,640 --> 00:36:22,520 Speaker 1: will plummet so fast that everybody will rush out and 691 00:36:22,520 --> 00:36:25,960 Speaker 1: buy anything they can, any house, any stock, anything they 692 00:36:26,000 --> 00:36:28,840 Speaker 1: can to get out of the dollar. That's what Mesas 693 00:36:28,840 --> 00:36:33,160 Speaker 1: framed up as the crack up boom. Now, it happened 694 00:36:33,200 --> 00:36:37,240 Speaker 1: within days, two days to f t X, and it's 695 00:36:37,280 --> 00:36:40,520 Speaker 1: going to happen over decades to the country. But we're 696 00:36:40,560 --> 00:36:43,160 Speaker 1: witnessing it, we're living through it, we're seeing it happen 697 00:36:43,280 --> 00:36:46,200 Speaker 1: right now. My guess is, just like with f t T, 698 00:36:46,360 --> 00:36:49,400 Speaker 1: you want to get out before everybody else, before the 699 00:36:49,440 --> 00:36:53,560 Speaker 1: fire exits gets jammed. And so this is your warning. Anyway, 700 00:36:53,600 --> 00:36:56,400 Speaker 1: you're listening to the Markmas show, breaking down the decentralized revolution, 701 00:36:56,480 --> 00:36:58,520 Speaker 1: breaking down the way the financial system is changing right 702 00:36:58,520 --> 00:37:01,759 Speaker 1: before our very eyes. How the stocurrency spaces of microcosm. 703 00:37:01,920 --> 00:37:03,360 Speaker 1: That's what I got. Thanks for listening.