1 00:00:00,160 --> 00:00:03,320 Speaker 1: The trade war isn't just about tariffs anymore. It's about 2 00:00:03,320 --> 00:00:08,360 Speaker 1: control of global trade, and it's exposing China's second fatal mistake, 3 00:00:08,720 --> 00:00:10,959 Speaker 1: one that could cost them global power for the next 4 00:00:11,240 --> 00:00:12,319 Speaker 1: one hundred years. 5 00:00:12,400 --> 00:00:12,640 Speaker 2: Now. 6 00:00:12,880 --> 00:00:15,880 Speaker 1: They already blew it once in eighteen seventy three when 7 00:00:15,880 --> 00:00:20,320 Speaker 1: the world shifted monetary systems and China chose wrong, losing 8 00:00:20,360 --> 00:00:24,079 Speaker 1: its leadership on the global stage. Now, while headlines scream 9 00:00:24,120 --> 00:00:27,880 Speaker 1: about tariffs and trade deals, behind the scenes, a new 10 00:00:28,040 --> 00:00:29,760 Speaker 1: monetary revolution is underway. 11 00:00:29,920 --> 00:00:30,760 Speaker 2: I'm Mark Moss. 12 00:00:30,800 --> 00:00:34,560 Speaker 1: I've spent two decades tracking money markets and the geopolitical 13 00:00:34,600 --> 00:00:38,520 Speaker 1: shifts that shape empires. My video from four years ago 14 00:00:38,840 --> 00:00:41,720 Speaker 1: called out China's big mistake, and now it's time for 15 00:00:41,800 --> 00:00:43,600 Speaker 1: an update. So in this video, I'm going to show 16 00:00:43,600 --> 00:00:47,360 Speaker 1: you what China missed, what the US just did, and 17 00:00:47,440 --> 00:00:51,159 Speaker 1: why the shift will redefine global power for the next century. 18 00:00:51,240 --> 00:00:54,720 Speaker 1: Because this isn't just a trade war, it's a monetary war, 19 00:00:54,920 --> 00:00:59,640 Speaker 1: and Trump's trade offensive is the spark that's magnifying the consequences. Now, 20 00:01:00,040 --> 00:01:02,600 Speaker 1: almost no one is connecting these dots. But once you 21 00:01:02,640 --> 00:01:04,280 Speaker 1: see it, you can't unsee it. 22 00:01:04,680 --> 00:01:05,360 Speaker 2: So let's go. 23 00:01:07,440 --> 00:01:09,160 Speaker 1: All right, So we're getting right into this, and we're 24 00:01:09,160 --> 00:01:12,640 Speaker 1: talking about on the surface, it seems like a trade war. 25 00:01:12,880 --> 00:01:13,160 Speaker 2: Now. 26 00:01:13,360 --> 00:01:15,360 Speaker 1: A couple days ago, at the time of this recording, 27 00:01:15,400 --> 00:01:18,360 Speaker 1: we had what Trump was calling Liberation Day, which is 28 00:01:18,480 --> 00:01:20,040 Speaker 1: we're going to stop letting the world take advantage of 29 00:01:20,040 --> 00:01:23,560 Speaker 1: the United States. We're going to put retaliatory or even 30 00:01:23,600 --> 00:01:25,880 Speaker 1: tariffs on each other to even out the playing field. 31 00:01:26,160 --> 00:01:28,399 Speaker 1: And there was a big announcement. Trump had this big 32 00:01:28,720 --> 00:01:31,440 Speaker 1: board showing all the different tariff rates against each of 33 00:01:31,520 --> 00:01:35,240 Speaker 1: these individual countries. Now, since that time, the world has 34 00:01:35,280 --> 00:01:37,800 Speaker 1: gone into a tailspin. We've seen the S and P 35 00:01:37,920 --> 00:01:40,920 Speaker 1: five hundred start to crater down, as you can see 36 00:01:40,959 --> 00:01:43,880 Speaker 1: this gap in the market right here showing the big 37 00:01:43,920 --> 00:01:47,039 Speaker 1: big step down. The Nasdaq doing the same thing with 38 00:01:47,160 --> 00:01:50,040 Speaker 1: these big gaps as it's dropping down. And so the 39 00:01:50,080 --> 00:01:52,360 Speaker 1: world is sort of in a panic. But I think 40 00:01:52,400 --> 00:01:54,160 Speaker 1: they're watching sort of the wrong thing. 41 00:01:54,160 --> 00:01:54,280 Speaker 3: Now. 42 00:01:54,360 --> 00:01:57,320 Speaker 2: People say that Trump is playing forty chess, So it's 43 00:01:57,360 --> 00:01:58,760 Speaker 2: not just the Tterarff's just forty chess. 44 00:01:58,840 --> 00:02:01,640 Speaker 1: Well, I won't lay out the entire playbook, although I'm 45 00:02:01,680 --> 00:02:02,200 Speaker 1: working on that. 46 00:02:02,240 --> 00:02:03,760 Speaker 2: If you want to video on that, let me know. 47 00:02:03,960 --> 00:02:06,040 Speaker 1: But let's talk about a big piece of this now 48 00:02:06,280 --> 00:02:08,000 Speaker 1: since then, there's already been. 49 00:02:07,960 --> 00:02:09,120 Speaker 2: A lot of movement. So a lot of people say, 50 00:02:09,120 --> 00:02:09,919 Speaker 2: it's the art of the deal. 51 00:02:10,160 --> 00:02:13,200 Speaker 1: So he throws out this as an anchor, and then 52 00:02:13,200 --> 00:02:14,120 Speaker 1: he negotiates back. 53 00:02:14,160 --> 00:02:16,760 Speaker 2: So fifty percent tariffs on you, Okay, we'll take ten 54 00:02:17,080 --> 00:02:17,440 Speaker 2: or whatever. 55 00:02:17,480 --> 00:02:20,280 Speaker 1: So we use these as negotiating tactics, and it seems 56 00:02:20,320 --> 00:02:21,600 Speaker 1: to be working. As a matter of fact, at the 57 00:02:21,639 --> 00:02:24,120 Speaker 1: time of this recording, a lot of the world is 58 00:02:24,240 --> 00:02:26,639 Speaker 1: already coming around and wanted to strike deals. We've seen 59 00:02:26,720 --> 00:02:31,679 Speaker 1: India announce that they're gonna even the playing field, Argentina, Vietnam, 60 00:02:32,000 --> 00:02:34,240 Speaker 1: lots of countries at the time it's recording. As of today, 61 00:02:34,280 --> 00:02:37,160 Speaker 1: as of this morning, even the EU says that they 62 00:02:37,200 --> 00:02:38,160 Speaker 1: will probably cave. 63 00:02:37,960 --> 00:02:40,200 Speaker 2: Which seems like the EU is gonna hold out. So 64 00:02:40,360 --> 00:02:41,560 Speaker 2: all of these countries are coming around. 65 00:02:41,560 --> 00:02:43,520 Speaker 1: As a matter of fact, Trump said that over fifty 66 00:02:43,639 --> 00:02:46,720 Speaker 1: nations have agreed to come in and work this out, 67 00:02:46,919 --> 00:02:50,440 Speaker 1: but China seems to be wanted to fight back. 68 00:02:50,520 --> 00:02:50,960 Speaker 2: As a matter of. 69 00:02:50,960 --> 00:02:54,320 Speaker 1: Fact, China announced retaliatory tariffs against the United States and 70 00:02:54,360 --> 00:02:56,920 Speaker 1: they will probably be the last one to come to 71 00:02:56,960 --> 00:02:59,600 Speaker 1: the table. Why is that, Well, we're gonna break that down. 72 00:03:00,080 --> 00:03:02,799 Speaker 1: We have to understand this is not just a trade war. 73 00:03:02,840 --> 00:03:06,200 Speaker 1: This is not just about goods or prices or jobs. 74 00:03:06,480 --> 00:03:09,640 Speaker 1: This is about monetary policy. And this is where the 75 00:03:09,680 --> 00:03:14,320 Speaker 1: two big dogs want to battle this out, the monetary policy. Okay, So, 76 00:03:15,919 --> 00:03:17,840 Speaker 1: if you watch my videos for a long time, I 77 00:03:17,919 --> 00:03:20,919 Speaker 1: used to do this where let's go back in time. 78 00:03:21,000 --> 00:03:24,000 Speaker 1: Let's go back in history and see what the historical 79 00:03:24,080 --> 00:03:26,799 Speaker 1: precedent is for what we're witnessing right now. So let's 80 00:03:26,840 --> 00:03:30,079 Speaker 1: go jump back about one hundred and fifty years. By 81 00:03:30,080 --> 00:03:32,040 Speaker 1: the way, if you've been watching my videos long enough 82 00:03:32,080 --> 00:03:34,440 Speaker 1: to remember this, drop me in the comments. Let me 83 00:03:34,480 --> 00:03:37,040 Speaker 1: know how long you've been watching and supporting this channel. Okay, 84 00:03:37,240 --> 00:03:41,880 Speaker 1: let's go back to China's first fatal mistake. Now we're 85 00:03:41,880 --> 00:03:44,520 Speaker 1: going back to about eighteen seventy three, and this is 86 00:03:44,560 --> 00:03:48,200 Speaker 1: when the whole world monetary system shifted as well. 87 00:03:48,360 --> 00:03:49,200 Speaker 2: You see, at the. 88 00:03:49,160 --> 00:03:52,240 Speaker 1: Time, the world had what was known as a bi metallities. 89 00:03:52,600 --> 00:03:55,400 Speaker 1: We had gold and we had silver, Okay, And what 90 00:03:55,520 --> 00:03:59,160 Speaker 1: happened is the world started changing, the world order started changing, 91 00:03:59,520 --> 00:04:02,360 Speaker 1: and the entire world, or most of the developed world, 92 00:04:03,000 --> 00:04:05,640 Speaker 1: that is, the United States and countries in Europe, decided 93 00:04:05,640 --> 00:04:07,920 Speaker 1: that they were going to go to a gold standard. 94 00:04:08,440 --> 00:04:10,720 Speaker 1: The problem is for countries like China is they had 95 00:04:10,760 --> 00:04:12,880 Speaker 1: a bunch of silver and they didn't want to go 96 00:04:12,920 --> 00:04:14,880 Speaker 1: onto a gold standard because they had silver, so they 97 00:04:14,880 --> 00:04:17,400 Speaker 1: were going to stay on a silver standard. And so 98 00:04:17,480 --> 00:04:20,680 Speaker 1: we can see some of the headlines from this era 99 00:04:21,000 --> 00:04:24,960 Speaker 1: say like how the silver standard wrecked China's economy. So 100 00:04:25,200 --> 00:04:28,080 Speaker 1: by deciding to stay in the old monetary order when 101 00:04:28,120 --> 00:04:31,760 Speaker 1: the new monetary order was shifted, it wrecked their economy. 102 00:04:31,960 --> 00:04:34,080 Speaker 1: And it didn't just wreck their economy, as a matter 103 00:04:34,080 --> 00:04:36,200 Speaker 1: of fact, we can see that it did a lot 104 00:04:36,279 --> 00:04:38,400 Speaker 1: more than that. So here we have the year eighteen 105 00:04:38,400 --> 00:04:41,800 Speaker 1: seventy three marked a turning point in monetary history, and 106 00:04:41,839 --> 00:04:44,360 Speaker 1: that is when the world shifted. So the German Empire 107 00:04:45,160 --> 00:04:47,719 Speaker 1: went from silver to a gold mark. In September, the 108 00:04:47,760 --> 00:04:51,239 Speaker 1: Parish Mint limited silver coinage into the double gold silver standard, 109 00:04:51,279 --> 00:04:53,320 Speaker 1: so they went to gold. Earlier that year, the US 110 00:04:53,360 --> 00:04:56,240 Speaker 1: Congress legislative phasing out of the temporary paper currency and 111 00:04:56,279 --> 00:04:59,240 Speaker 1: replaced it with gold dollar. United Kingdom already on the 112 00:04:59,240 --> 00:05:01,200 Speaker 1: gold by the end of the eight eighteen seventies, silver 113 00:05:01,279 --> 00:05:04,840 Speaker 1: which until eighteen seventy three, that's the turning point, had 114 00:05:04,880 --> 00:05:07,760 Speaker 1: been on an equal footing with gold became a secondary 115 00:05:07,760 --> 00:05:13,279 Speaker 1: currency medal used by mostly periphery countries. So leading countries 116 00:05:13,320 --> 00:05:15,200 Speaker 1: made the move. If you wanted to be a third 117 00:05:15,320 --> 00:05:17,480 Speaker 1: rate country, perifery nation, you stayed with that. 118 00:05:17,520 --> 00:05:18,880 Speaker 2: The montary impact was stark. 119 00:05:19,040 --> 00:05:21,440 Speaker 1: Between eighteen seventy three and the end of the decade, 120 00:05:21,640 --> 00:05:26,599 Speaker 1: silver depreciated by some twenty percent, and so as China 121 00:05:26,720 --> 00:05:29,000 Speaker 1: decided not to go to gold and decided to hang 122 00:05:29,040 --> 00:05:32,680 Speaker 1: onto silver, it continued to lose its purchasing power. Now 123 00:05:32,720 --> 00:05:35,120 Speaker 1: it lost twenty percent, ended up losing thirty percent. So 124 00:05:35,440 --> 00:05:39,960 Speaker 1: the nation China saw their national. 125 00:05:39,760 --> 00:05:42,120 Speaker 2: Purchasing power dropped by thirty percent. 126 00:05:42,320 --> 00:05:44,880 Speaker 1: It's a massive, a massive drop in standard of living. 127 00:05:45,040 --> 00:05:48,600 Speaker 1: We can see by nineteen thirty three. In November of 128 00:05:48,600 --> 00:05:51,440 Speaker 1: that year, the Chinese government threw in the towel. They 129 00:05:51,520 --> 00:05:53,560 Speaker 1: nationalized what silver was left, and they put the country 130 00:05:53,560 --> 00:05:57,159 Speaker 1: on a paper currency standard and said, so they decided 131 00:05:57,200 --> 00:06:00,800 Speaker 1: finally to capitulate. Finally, okay, we lost the world went 132 00:06:00,839 --> 00:06:01,160 Speaker 1: to gold. 133 00:06:01,160 --> 00:06:01,520 Speaker 2: We didn't. 134 00:06:01,520 --> 00:06:03,120 Speaker 1: We stayed and said, okay, we lost thirty percent of 135 00:06:03,160 --> 00:06:05,680 Speaker 1: our personal power. Okay, let's throw on the towel and 136 00:06:05,760 --> 00:06:09,440 Speaker 1: we'll eventually capitulate. And we'll move over after they lost 137 00:06:09,480 --> 00:06:11,359 Speaker 1: thirty percent. But it wasn't just thirty percent they lost. 138 00:06:11,560 --> 00:06:12,719 Speaker 2: They lost their. 139 00:06:12,600 --> 00:06:16,080 Speaker 1: Position as one of the global dominant world leaders. They 140 00:06:16,120 --> 00:06:19,200 Speaker 1: became a prefer nation, as it said. Now, that was 141 00:06:19,240 --> 00:06:22,280 Speaker 1: their first fatal mistake. Now they've spent the last one 142 00:06:22,360 --> 00:06:26,479 Speaker 1: hundred years were longer, trying to catch up, trying to 143 00:06:26,520 --> 00:06:29,159 Speaker 1: fix or right the wrongs of that past. So for 144 00:06:29,160 --> 00:06:31,800 Speaker 1: the last one hundred years they've been trying to get 145 00:06:31,800 --> 00:06:33,640 Speaker 1: back to the gold standard. They've been trying to get 146 00:06:33,680 --> 00:06:36,240 Speaker 1: as much gold as they possibly could, and they've been 147 00:06:36,320 --> 00:06:40,520 Speaker 1: adding more gold during this recent time than any other. 148 00:06:40,480 --> 00:06:41,440 Speaker 2: Nation out there. 149 00:06:41,640 --> 00:06:43,880 Speaker 1: As a matter of fact, we can see that China 150 00:06:44,400 --> 00:06:48,080 Speaker 1: has been rumored to be laying the foundation for the 151 00:06:48,120 --> 00:06:52,320 Speaker 1: next world gold standard system. This was written back in 152 00:06:52,400 --> 00:06:55,920 Speaker 1: twenty sixteen, so they appear to be laying the foundation 153 00:06:56,040 --> 00:06:59,160 Speaker 1: to bring the world back to the gold standard. 154 00:06:58,760 --> 00:06:59,359 Speaker 2: Like it used to be. 155 00:06:59,680 --> 00:07:02,400 Speaker 1: For those that don't understand, President Richard Nixon nineteen seventy 156 00:07:02,600 --> 00:07:05,640 Speaker 1: one cut the ties to the gold standard, so they're 157 00:07:05,640 --> 00:07:08,080 Speaker 1: saying bring it back to that. Now we can see 158 00:07:08,120 --> 00:07:11,360 Speaker 1: that China has been buying more and more gold as 159 00:07:11,440 --> 00:07:14,440 Speaker 1: the trade war drags on. Now this is twenty nineteen. 160 00:07:14,920 --> 00:07:17,520 Speaker 1: Trade war drags on twenty nineteen. Why is that, Well, 161 00:07:18,080 --> 00:07:21,239 Speaker 1: in Trump's first term is when the tariffs really started. 162 00:07:21,680 --> 00:07:24,360 Speaker 1: That's when this trade war started between the US and China, 163 00:07:24,600 --> 00:07:27,560 Speaker 1: two dominant superpowers, and so this has been going on 164 00:07:27,640 --> 00:07:29,240 Speaker 1: for a long time. They've been buying more and more 165 00:07:29,240 --> 00:07:32,760 Speaker 1: gold as this trade war drags on. Now, how much 166 00:07:32,880 --> 00:07:36,400 Speaker 1: gold do they have? Well, we can see that number one. 167 00:07:36,440 --> 00:07:38,120 Speaker 1: We don't really know, but let's do a little bit 168 00:07:38,120 --> 00:07:41,640 Speaker 1: of math. We know that the US gold holdings officially, officially, 169 00:07:41,640 --> 00:07:43,280 Speaker 1: the record shows, which by the way, I don't know 170 00:07:43,280 --> 00:07:46,200 Speaker 1: if it's been audited, shows the US owns about eighty 171 00:07:46,280 --> 00:07:50,040 Speaker 1: one hundred eight one hundred and thirty three tons of. 172 00:07:49,960 --> 00:07:53,000 Speaker 2: Gold in Fort Knox. We want to see that audited. 173 00:07:53,320 --> 00:07:56,800 Speaker 2: But China's officially declared holdings. This is where it gets sticky. 174 00:07:56,800 --> 00:08:00,240 Speaker 1: Officially holdings is one, nine hundred and forty eight tons, 175 00:08:00,560 --> 00:08:03,040 Speaker 1: make up just three percent of his three point two 176 00:08:03,120 --> 00:08:07,040 Speaker 1: trillion and four exchange holdings, but the real number is 177 00:08:07,120 --> 00:08:07,920 Speaker 1: much larger than that. 178 00:08:08,560 --> 00:08:10,160 Speaker 2: China has been the world's largest. 179 00:08:09,840 --> 00:08:12,960 Speaker 1: Gold producer since two thousand and seven, the largest producer 180 00:08:13,480 --> 00:08:16,320 Speaker 1: this past decade. It is produced about fifteen percent of 181 00:08:16,440 --> 00:08:19,280 Speaker 1: all the gold miners in the world. Last year produced 182 00:08:19,280 --> 00:08:21,840 Speaker 1: three hundred and eighty tons. That's twenty percent more than 183 00:08:21,880 --> 00:08:25,080 Speaker 1: the world's second largest producer, which is Australia. So not 184 00:08:25,120 --> 00:08:29,560 Speaker 1: only is it the largest producer, but it's also one 185 00:08:29,560 --> 00:08:31,800 Speaker 1: of the largest buyers. But I want you to understand 186 00:08:31,840 --> 00:08:34,440 Speaker 1: what its policy was. It's key for understanding this. We 187 00:08:34,480 --> 00:08:38,040 Speaker 1: can see that China has roughly mined about sixty five 188 00:08:38,520 --> 00:08:42,240 Speaker 1: hundred tons mine sixty five hundred tons. Now, the key 189 00:08:42,320 --> 00:08:45,280 Speaker 1: behind this is that the gold it mines, it keeps. 190 00:08:45,640 --> 00:08:49,000 Speaker 1: Exporting of domestic mine production is not allowed. So basically 191 00:08:49,080 --> 00:08:51,079 Speaker 1: China says, hey, come minu as much gold as you 192 00:08:51,120 --> 00:08:52,199 Speaker 1: want in China. 193 00:08:52,240 --> 00:08:53,960 Speaker 2: But you have to sell it to us. 194 00:08:54,000 --> 00:08:56,920 Speaker 1: You can't export that gold. So all of this being 195 00:08:56,960 --> 00:09:00,600 Speaker 1: produced in China is being bought by China. Chinese mining 196 00:09:00,600 --> 00:09:03,000 Speaker 1: companies have also been buying assets abroad, So not only 197 00:09:03,040 --> 00:09:04,840 Speaker 1: have they've been mined in China Sunday China, but they've 198 00:09:04,840 --> 00:09:08,240 Speaker 1: also been buying assets abroad Africa, South America, Asia, et cetera. 199 00:09:09,000 --> 00:09:11,640 Speaker 1: The world's biggest producer, China is the world's biggest import 200 00:09:11,720 --> 00:09:13,960 Speaker 1: So not only are the largest producer and the buyt all, 201 00:09:14,040 --> 00:09:16,720 Speaker 1: they're also the biggest buyer. At the same time, over 202 00:09:16,760 --> 00:09:18,880 Speaker 1: six thousand tons is entered the country since two thousand. 203 00:09:19,320 --> 00:09:21,360 Speaker 1: Of that cumulat gold production since two thousand, you. 204 00:09:21,320 --> 00:09:24,160 Speaker 2: Get to a figure of about thirteen thousand, two hundred tons. 205 00:09:24,280 --> 00:09:25,880 Speaker 2: This is like back of a napkin math. A lot 206 00:09:25,880 --> 00:09:28,240 Speaker 2: of it's like hidden. We'll skip ahead here. 207 00:09:28,400 --> 00:09:29,720 Speaker 1: We can see that a lot of it doesn't go 208 00:09:29,800 --> 00:09:32,640 Speaker 1: through the main channels. Since two thousand and eight, roughly 209 00:09:32,720 --> 00:09:37,000 Speaker 1: twenty thousand tons have been withdrawn from the Shanghai Gold Exchange. 210 00:09:37,160 --> 00:09:40,000 Speaker 1: So if we add all this up, the rumors are 211 00:09:40,040 --> 00:09:44,640 Speaker 1: that China could own somewhere between twenty to thirty thousand 212 00:09:44,760 --> 00:09:48,920 Speaker 1: tons of gold. A small business owner, are you buried 213 00:09:49,000 --> 00:09:51,400 Speaker 1: in all types of work keeping you from the real 214 00:09:51,480 --> 00:09:54,120 Speaker 1: thing that makes you money? Well that's where Just Works 215 00:09:54,120 --> 00:09:56,320 Speaker 1: comes in. They're the all in one platform that supports 216 00:09:56,400 --> 00:09:59,320 Speaker 1: small business growth. 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So visit Justworks dot 224 00:10:25,040 --> 00:10:28,720 Speaker 1: com slash podcast to join the thousands of small businesses 225 00:10:28,720 --> 00:10:31,880 Speaker 1: that trust Just Works to take care of payroll, benefits, 226 00:10:32,040 --> 00:10:36,920 Speaker 1: compliance and more. Again, that's Justworks dot Com slash podcasts. 227 00:10:38,040 --> 00:10:41,840 Speaker 1: China's hoarding goal to challenge the US dollar. Again, this 228 00:10:41,880 --> 00:10:43,480 Speaker 1: has been going on for a long time. 229 00:10:43,480 --> 00:10:46,200 Speaker 2: This is twenty fourteen. So we have the two big 230 00:10:46,240 --> 00:10:48,120 Speaker 2: dogs come into the table. 231 00:10:48,120 --> 00:10:50,520 Speaker 1: And the US now is trying to force not just 232 00:10:50,640 --> 00:10:53,000 Speaker 1: tariffs on them, not just trade tariffs. But this is 233 00:10:53,040 --> 00:10:55,360 Speaker 1: a monetary shift of monetary restructuring. 234 00:10:55,600 --> 00:10:55,800 Speaker 2: Now. 235 00:10:55,960 --> 00:10:59,760 Speaker 1: Rumors also are that maybe China's paving the way for 236 00:10:59,840 --> 00:11:03,000 Speaker 1: a gold back you on, and so they might actually 237 00:11:03,040 --> 00:11:04,960 Speaker 1: want to back their currency with gold, which then means 238 00:11:05,000 --> 00:11:08,960 Speaker 1: they sort of in the dollar dominance. Other nations would 239 00:11:09,040 --> 00:11:11,959 Speaker 1: rather buy a gold back currency like a Chinese yuan. Now, 240 00:11:12,640 --> 00:11:14,040 Speaker 1: I've done other videos on this. If you want to 241 00:11:14,040 --> 00:11:15,640 Speaker 1: see that, we'll link to it down below if you 242 00:11:15,640 --> 00:11:17,920 Speaker 1: want to understand more about that, But that's not the 243 00:11:18,000 --> 00:11:18,720 Speaker 1: key point. 244 00:11:18,520 --> 00:11:20,000 Speaker 2: That we want to dig into right now. 245 00:11:20,240 --> 00:11:23,400 Speaker 1: Okay, what we really want to understand is that the 246 00:11:23,480 --> 00:11:26,480 Speaker 1: last time this happened, as the world shifted to a 247 00:11:26,640 --> 00:11:29,560 Speaker 1: new monetary standard, China decide to stick with the old 248 00:11:29,600 --> 00:11:32,440 Speaker 1: standard and they lost a position in the world. Now 249 00:11:32,480 --> 00:11:36,200 Speaker 1: we're seeing a new monetary evolution while China is still 250 00:11:36,200 --> 00:11:38,079 Speaker 1: trying to build the previous one. 251 00:11:38,120 --> 00:11:38,959 Speaker 2: What am I talking about. 252 00:11:39,080 --> 00:11:42,439 Speaker 1: Well, of course, bitcoin has been the best performing asset 253 00:11:42,520 --> 00:11:45,679 Speaker 1: in the world. It is the most scarce digital asset 254 00:11:45,840 --> 00:11:49,240 Speaker 1: in the world, and right now we have people, corporations, 255 00:11:49,320 --> 00:11:52,280 Speaker 1: governments all jumping into it. Now, I will talk about 256 00:11:52,280 --> 00:11:55,120 Speaker 1: this as an evolution, monetary evolution and the reason why 257 00:11:55,240 --> 00:11:58,000 Speaker 1: if you look back through thousands of years of history 258 00:11:58,040 --> 00:12:01,600 Speaker 1: of monetary history, you understand that it's an evolutionary process. 259 00:12:01,600 --> 00:12:04,880 Speaker 1: So we've had feathers, rock, seashells, all types of things 260 00:12:04,880 --> 00:12:07,880 Speaker 1: become money. Eventually gold emerged as the best form money. 261 00:12:07,880 --> 00:12:10,600 Speaker 1: But it's an evolutionary process. It first starts as a 262 00:12:10,640 --> 00:12:12,760 Speaker 1: collectible like oh, look at this cool rock, or this 263 00:12:12,800 --> 00:12:15,520 Speaker 1: cool feather, the cool seashell, Look those cool baseball card 264 00:12:16,080 --> 00:12:19,240 Speaker 1: or whatever it is. Now some not most collectibles don't, 265 00:12:19,400 --> 00:12:22,960 Speaker 1: but some become a store of value. So the wealthy 266 00:12:23,080 --> 00:12:26,480 Speaker 1: store their wealth in collectible. So for example, not all 267 00:12:26,480 --> 00:12:29,000 Speaker 1: baseball cards, but some baseball cards are worth a lot 268 00:12:29,040 --> 00:12:32,520 Speaker 1: of money. Not every painting, but some paintings, some old cards. 269 00:12:32,760 --> 00:12:37,160 Speaker 1: So some collectibles do become a store of value. Then 270 00:12:37,679 --> 00:12:40,960 Speaker 1: some things could become a medium of exchange that we 271 00:12:41,080 --> 00:12:43,640 Speaker 1: use it for exchanges, for buying goods and services, but 272 00:12:43,720 --> 00:12:47,840 Speaker 1: only if it has the right attributes, which are portable, durable, divisible, recognizable, 273 00:12:47,880 --> 00:12:52,079 Speaker 1: fungible things like that. So the mona lisa is not divisible, 274 00:12:52,760 --> 00:12:55,920 Speaker 1: A cow is divisible, but it's not fungible. One like 275 00:12:56,040 --> 00:12:59,160 Speaker 1: a rabbi is not the same as a liver. A 276 00:12:59,200 --> 00:13:01,680 Speaker 1: banana would be no good because it's not durable. But 277 00:13:01,840 --> 00:13:06,280 Speaker 1: gold fit all of those things. However, it's not very portable, right, 278 00:13:06,320 --> 00:13:08,560 Speaker 1: It's very hard to move large amounts of gold. So 279 00:13:08,800 --> 00:13:11,720 Speaker 1: now we understand that bitcoin was a collectible. Oh it's cool, 280 00:13:11,760 --> 00:13:14,800 Speaker 1: magic Internet money. Today we know that the United States 281 00:13:14,800 --> 00:13:17,040 Speaker 1: government calls it a store of value and it's put 282 00:13:17,040 --> 00:13:20,120 Speaker 1: it on the Strategic Reserve. But we also know that 283 00:13:20,160 --> 00:13:22,280 Speaker 1: it has better attributes that could allow it to become 284 00:13:22,320 --> 00:13:24,840 Speaker 1: a meni of exchange. So we're seeing it go through 285 00:13:24,880 --> 00:13:30,480 Speaker 1: this monetary evolution and we understand that in these technology cycles, 286 00:13:30,520 --> 00:13:33,319 Speaker 1: we have a fifty year cycle as they reach adoption, 287 00:13:33,559 --> 00:13:36,880 Speaker 1: and there's two distinct phases. First one was the retail 288 00:13:37,000 --> 00:13:38,880 Speaker 1: phase twenty ten to twenty twenty. 289 00:13:38,880 --> 00:13:39,480 Speaker 2: We're past that. 290 00:13:39,800 --> 00:13:41,760 Speaker 1: Twenty twenty to twenty thirty is what we call the 291 00:13:41,880 --> 00:13:45,720 Speaker 1: institutional phase, where Wall Street comes in, the corporations come in, 292 00:13:45,920 --> 00:13:48,840 Speaker 1: the sovereigns come in, and we're clearly. 293 00:13:48,520 --> 00:13:49,360 Speaker 2: In that phase. 294 00:13:49,559 --> 00:13:52,440 Speaker 1: Now we don't know all the implications because we're still 295 00:13:52,520 --> 00:13:56,440 Speaker 1: in the evolutionary phase. But this is where China's second 296 00:13:56,440 --> 00:13:57,559 Speaker 1: fatal mistake comes in. 297 00:13:58,200 --> 00:13:58,360 Speaker 2: Now. 298 00:13:58,400 --> 00:14:02,560 Speaker 1: You see China is they had a scarcity mindset because 299 00:14:02,600 --> 00:14:05,400 Speaker 1: it's a communist country, so they have to protect their protection. 300 00:14:05,520 --> 00:14:07,080 Speaker 1: So they can't allow their people to look on the 301 00:14:07,120 --> 00:14:08,920 Speaker 1: internet to see what other people are doing in other 302 00:14:08,960 --> 00:14:11,160 Speaker 1: parts of the world. They can't allow other technologies to 303 00:14:11,160 --> 00:14:13,240 Speaker 1: come in. They have to have this scarcity mindset, so 304 00:14:13,280 --> 00:14:17,840 Speaker 1: when people start innovating with different things, they can miss 305 00:14:17,880 --> 00:14:20,360 Speaker 1: out on that they want to stop it before it 306 00:14:20,360 --> 00:14:23,320 Speaker 1: takes office, so they missed the innovation. So, for example, 307 00:14:23,600 --> 00:14:26,760 Speaker 1: they had a lot of bitcoin in China, but they 308 00:14:26,800 --> 00:14:28,440 Speaker 1: banned it over and over and over. As a matter 309 00:14:28,440 --> 00:14:32,240 Speaker 1: of fact, China banned bitcoin thirteen times since twenty twelve. 310 00:14:32,600 --> 00:14:34,320 Speaker 1: Didn't work the first time, the second time, and third time, 311 00:14:34,320 --> 00:14:35,880 Speaker 1: Well let's try thirteen times. 312 00:14:36,720 --> 00:14:39,880 Speaker 2: And it's because it can't be banned, it can't be stopped. 313 00:14:39,880 --> 00:14:41,960 Speaker 1: But what they could do, and this is where really 314 00:14:42,000 --> 00:14:45,080 Speaker 1: the second fatal mistake really kicked in, is that China 315 00:14:45,240 --> 00:14:49,840 Speaker 1: had over sixty percent of the bitcoin network. 316 00:14:50,120 --> 00:14:53,960 Speaker 2: Mining hash power in their country. They had control of 317 00:14:54,000 --> 00:14:55,320 Speaker 2: it bitcoin miners. 318 00:14:55,560 --> 00:14:59,600 Speaker 1: China's cryptocurrency crack down pushes companies overseas. 319 00:14:59,160 --> 00:15:02,360 Speaker 2: So they decided to get all of the mining out 320 00:15:02,360 --> 00:15:04,600 Speaker 2: of China. Now what do they do with gold mining? 321 00:15:04,600 --> 00:15:06,520 Speaker 2: Whe They're the largest producer and the largest buyer. 322 00:15:06,760 --> 00:15:08,640 Speaker 1: So with gold mining, come mine all you want, but 323 00:15:08,760 --> 00:15:11,160 Speaker 1: sell it to us. They had all the bitcoin mining 324 00:15:11,200 --> 00:15:13,400 Speaker 1: happening in China, they could have done the same policy, 325 00:15:13,520 --> 00:15:14,840 Speaker 1: Hey you can mine it. 326 00:15:14,760 --> 00:15:17,280 Speaker 2: Here, but you have to sell it to us. But 327 00:15:17,400 --> 00:15:20,680 Speaker 2: instead they pushed it all out. Now where did it go. 328 00:15:20,960 --> 00:15:23,440 Speaker 1: China's kicking out more than half the world's bitcoin miners, 329 00:15:23,520 --> 00:15:26,200 Speaker 1: about sixty percent, and a whole lot of them could 330 00:15:26,200 --> 00:15:29,320 Speaker 1: be headed to Texas. So the United States became the 331 00:15:29,320 --> 00:15:31,960 Speaker 1: main beneficiary of this. And that's why you hear Donald 332 00:15:31,960 --> 00:15:36,720 Speaker 1: Trump saying, now we want all the bitcoin that's created 333 00:15:36,760 --> 00:15:39,640 Speaker 1: to be created in America. He has claimed it to 334 00:15:39,640 --> 00:15:42,360 Speaker 1: be a strategic initiative for the US to be the 335 00:15:42,400 --> 00:15:46,640 Speaker 1: world dominant leader in bitcoin. Create it here, store it 336 00:15:46,720 --> 00:15:50,280 Speaker 1: here in the US has moved first partly because we're 337 00:15:50,280 --> 00:15:53,240 Speaker 1: not a communist country. We can have innovation. Now we 338 00:15:53,280 --> 00:15:56,160 Speaker 1: have some of the largest most influential people in the 339 00:15:56,160 --> 00:15:58,440 Speaker 1: world or in the United States and the world, like 340 00:15:58,560 --> 00:16:01,840 Speaker 1: Larry Fink from Black Rile, who is the largest asset 341 00:16:01,880 --> 00:16:05,480 Speaker 1: manager in the world, who has now said that bitcoin 342 00:16:06,040 --> 00:16:09,080 Speaker 1: is an asset. Bitcoin is a store by asset. We 343 00:16:09,120 --> 00:16:12,720 Speaker 1: have Scopasent, the new Treasury Secretary was just on Tucker 344 00:16:12,760 --> 00:16:14,920 Speaker 1: the other day and they said, it is a store value. 345 00:16:14,920 --> 00:16:17,960 Speaker 1: Bitcoin is a store value. We have Howard Lutnik. He 346 00:16:18,120 --> 00:16:20,560 Speaker 1: is the Secretary of Commerce for the new Trump administration. 347 00:16:20,920 --> 00:16:22,880 Speaker 1: And before I tell you what he said, let's just 348 00:16:22,960 --> 00:16:27,800 Speaker 1: hear from him directly. Multi billionaire Wall Street fund manager 349 00:16:27,840 --> 00:16:30,560 Speaker 1: and now the Secretary of Commerce. Let's hear directly from him. 350 00:16:30,760 --> 00:16:33,200 Speaker 3: It's the easiest way to get a clear view of 351 00:16:33,240 --> 00:16:34,720 Speaker 3: where bitcoin is going. 352 00:16:34,560 --> 00:16:35,600 Speaker 2: Over the next five years. 353 00:16:35,760 --> 00:16:38,440 Speaker 3: Let's take a look at the last five right the 354 00:16:38,560 --> 00:16:44,360 Speaker 3: last five Bitcoin has been an outsider in the finance business, 355 00:16:44,560 --> 00:16:49,320 Speaker 3: becoming closer and closer and closer. Right now, there's an 356 00:16:49,320 --> 00:16:54,720 Speaker 3: ETF just starting to go a little bit mainstream media. 357 00:16:55,080 --> 00:16:59,200 Speaker 3: You will see all the traditional financial service companies, that 358 00:16:59,280 --> 00:17:03,080 Speaker 3: big banks, the grograge companies, they're all gonna go headfirst 359 00:17:03,120 --> 00:17:08,320 Speaker 3: into Bigtin Tom. That's what's going to happen, and it's 360 00:17:08,359 --> 00:17:12,840 Speaker 3: coming and when that happens, you're going to see bigcoin move. 361 00:17:13,119 --> 00:17:16,760 Speaker 3: They're very very strong positive direction. 362 00:17:17,119 --> 00:17:18,760 Speaker 2: So that's why I'm a fan of bigtoin. 363 00:17:19,119 --> 00:17:23,119 Speaker 3: It's going to go much higher. He always bounces around 364 00:17:23,119 --> 00:17:26,160 Speaker 3: like any other financial asset. But ultimately, over the next 365 00:17:26,160 --> 00:17:30,439 Speaker 3: five years, as it gets invited into this party, up we. 366 00:17:30,600 --> 00:17:33,280 Speaker 1: Got so you can hear he said that every institution 367 00:17:33,480 --> 00:17:35,560 Speaker 1: wants to get in and this will just push the 368 00:17:35,640 --> 00:17:40,080 Speaker 1: price up, up, up. And even the Trump family, his 369 00:17:40,160 --> 00:17:42,160 Speaker 1: son Eric Trump, was just on TV saying how they're 370 00:17:42,200 --> 00:17:45,160 Speaker 1: pivoting from real estate, which the Trump name is anonymous 371 00:17:45,160 --> 00:17:48,440 Speaker 1: with real estate, and they're pivoting into bitcoin. Now, this 372 00:17:48,520 --> 00:17:51,760 Speaker 1: is all happening right now, and it's not just all 373 00:17:51,800 --> 00:17:53,960 Speaker 1: of those individuals I mentioned, Like I said, this is 374 00:17:54,040 --> 00:17:57,679 Speaker 1: a new global asset. Because now the United States, with 375 00:17:57,800 --> 00:18:01,159 Speaker 1: the dominant global position as the US dollars the reserve 376 00:18:01,200 --> 00:18:04,520 Speaker 1: currency of the world, has made it a strategic reserve. 377 00:18:04,560 --> 00:18:07,520 Speaker 1: They've created a thesis where they said, again, Trump wants 378 00:18:07,520 --> 00:18:09,800 Speaker 1: it all made here, he wants the US to lead 379 00:18:09,840 --> 00:18:13,560 Speaker 1: in this, and they're building a strategic reserve of bitcoin. 380 00:18:13,600 --> 00:18:16,800 Speaker 2: Now, back to China, they had the dominance, they had the. 381 00:18:16,720 --> 00:18:19,879 Speaker 1: Bitcoin there, they had sixty percent of the hash power 382 00:18:19,960 --> 00:18:22,520 Speaker 1: in their country. But then they kicked it all out. 383 00:18:22,760 --> 00:18:25,159 Speaker 1: So the US is now home to a majority of 384 00:18:25,160 --> 00:18:28,240 Speaker 1: the bitcoin hash rate. Now the US is home to 385 00:18:28,560 --> 00:18:33,280 Speaker 1: public and private reserves of bitcoin. The United States has 386 00:18:33,320 --> 00:18:36,359 Speaker 1: the dominant upper hand while China is still trying to 387 00:18:36,359 --> 00:18:40,440 Speaker 1: compete for the old monetary system of gold. The US 388 00:18:40,880 --> 00:18:43,520 Speaker 1: and the world is moving into something different. And so really, 389 00:18:43,560 --> 00:18:46,600 Speaker 1: if we look at the situation, it's not just about trade. 390 00:18:46,640 --> 00:18:49,280 Speaker 2: It's not just about teriffs. It's monetary wars. 391 00:18:49,320 --> 00:18:52,160 Speaker 1: The tariffs are a distraction for what's really going on. 392 00:18:52,560 --> 00:18:57,480 Speaker 1: The real war is about the monetary system, because whoever 393 00:18:57,520 --> 00:19:02,480 Speaker 1: controls the money controls the world. Now China keeps banning innovation, 394 00:19:02,800 --> 00:19:05,080 Speaker 1: they keep stifling it, they keep pushing it out, and 395 00:19:05,119 --> 00:19:07,280 Speaker 1: so they're not able to take advantage of things like this. 396 00:19:07,400 --> 00:19:10,960 Speaker 1: It's a real conundrum that countries find themselves in. If 397 00:19:11,000 --> 00:19:13,720 Speaker 1: we allow the people to be free and have access 398 00:19:13,720 --> 00:19:17,480 Speaker 1: to the Internet and ideas and information, they may reject 399 00:19:17,640 --> 00:19:21,560 Speaker 1: our authoritarian views. But if we don't allow them to 400 00:19:21,640 --> 00:19:24,480 Speaker 1: have that information, then we stifle our own growth. And 401 00:19:24,520 --> 00:19:27,240 Speaker 1: they're trying to play that line, if you will, But 402 00:19:27,280 --> 00:19:28,320 Speaker 1: they keep banning innovation. 403 00:19:28,600 --> 00:19:31,400 Speaker 2: But the US is now embracing innovation. 404 00:19:31,520 --> 00:19:35,600 Speaker 1: Now. The United States diverted under the Biden administration. It 405 00:19:35,720 --> 00:19:40,639 Speaker 1: was overly tough on bitcoin and cryptocurrencies in general. The 406 00:19:40,680 --> 00:19:43,879 Speaker 1: Trump administration has gone completely the other way. Now we 407 00:19:43,920 --> 00:19:49,439 Speaker 1: see bitcoin adoption and the Global Reserve is positioning for 408 00:19:49,560 --> 00:19:54,080 Speaker 1: it specifically, just like gold before Breton Woods. Now some 409 00:19:54,119 --> 00:19:57,320 Speaker 1: of you might say, yeah, but can't China just buy 410 00:19:57,320 --> 00:19:57,720 Speaker 1: it later? 411 00:19:58,320 --> 00:20:00,440 Speaker 2: So what if the US moves first? China can just 412 00:20:00,480 --> 00:20:00,880 Speaker 2: buy it later? 413 00:20:00,920 --> 00:20:05,760 Speaker 1: They certainly can, just like China eventually capitulated and boy gold, 414 00:20:05,880 --> 00:20:08,720 Speaker 1: they certainly can. But China lost its position in the 415 00:20:08,720 --> 00:20:12,000 Speaker 1: world because it waited until it lost thirty percent of 416 00:20:12,040 --> 00:20:14,840 Speaker 1: its wealth before doing that. That's where game theory and 417 00:20:14,880 --> 00:20:18,119 Speaker 1: first move advantage comes in. Now, what does all this mean, Well, 418 00:20:18,240 --> 00:20:20,680 Speaker 1: what this means is that what's going on right now 419 00:20:20,720 --> 00:20:24,840 Speaker 1: with the global monetary system is really shaping the next century, 420 00:20:24,880 --> 00:20:27,439 Speaker 1: the next one hundred years of power. Just like we 421 00:20:27,480 --> 00:20:30,080 Speaker 1: saw in the first Fatal Mistake, we're seeing the same thing. 422 00:20:30,440 --> 00:20:34,800 Speaker 1: We're we're living through monetary history. This is exciting for 423 00:20:34,800 --> 00:20:36,399 Speaker 1: me because you know how much I love history, and 424 00:20:36,440 --> 00:20:39,399 Speaker 1: so we're literally living through a period that history of 425 00:20:39,400 --> 00:20:41,600 Speaker 1: books we'll be talking about, and we get to live 426 00:20:41,600 --> 00:20:41,800 Speaker 1: through it. 427 00:20:41,840 --> 00:20:43,040 Speaker 2: We get a witness it in the real time. 428 00:20:43,320 --> 00:20:47,560 Speaker 1: Owning bitcoin is running all of these other nations like China, 429 00:20:47,680 --> 00:20:49,760 Speaker 1: They're going to come around eventually. We like to say 430 00:20:49,800 --> 00:20:52,080 Speaker 1: that everyone buys bitcoin at the price they deserve. But 431 00:20:52,240 --> 00:20:54,320 Speaker 1: you and I get a chance to front run this 432 00:20:54,560 --> 00:20:58,480 Speaker 1: right now, and we're going to see wealth consolidate before 433 00:20:58,560 --> 00:21:01,840 Speaker 1: the world catches on, because everyone will come around eventually. 434 00:21:02,160 --> 00:21:04,280 Speaker 2: A quote that I say often is that the future 435 00:21:04,359 --> 00:21:05,880 Speaker 2: is not evenly distributed. 436 00:21:06,359 --> 00:21:09,600 Speaker 1: So we have access to information today that the rest 437 00:21:09,600 --> 00:21:11,520 Speaker 1: of the world is going to catch up to eventually. 438 00:21:11,720 --> 00:21:13,840 Speaker 1: But it gives all of us a way to consolidate 439 00:21:13,880 --> 00:21:14,640 Speaker 1: and build. 440 00:21:14,320 --> 00:21:15,960 Speaker 2: Our wealth before the world catches on. 441 00:21:16,840 --> 00:21:19,320 Speaker 1: Don't be like China. Don't make another fatal mistake with 442 00:21:19,359 --> 00:21:23,320 Speaker 1: your own portfolio. Instead, be a first mover like bitcoin now. 443 00:21:23,320 --> 00:21:25,000 Speaker 1: If you'd like to know where I think bitcoin is 444 00:21:25,000 --> 00:21:27,760 Speaker 1: headed in twenty thirty, twenty forty, and twenty fifty, you 445 00:21:27,920 --> 00:21:28,480 Speaker 1: might want to. 446 00:21:28,480 --> 00:21:30,200 Speaker 2: Watch this video right here. 447 00:21:30,600 --> 00:21:32,560 Speaker 1: Otherwise, thumbs up if you like it, thumbs down. If 448 00:21:32,560 --> 00:21:34,120 Speaker 1: you don't leave me a comment, let me know why. 449 00:21:34,200 --> 00:21:35,120 Speaker 1: And that's what I got. 450 00:21:35,000 --> 00:21:35,680 Speaker 2: To your success. 451 00:21:36,480 --> 00:21:36,880 Speaker 1: I'm out.