WEBVTT - The Trade War is Exposing China’s 2nd Fatal Mistake 0:00:00.160 --> 0:00:03.320 The trade war isn't just about tariffs anymore. It's about 0:00:03.320 --> 0:00:08.360 control of global trade, and it's exposing China's second fatal mistake, 0:00:08.720 --> 0:00:10.959 one that could cost them global power for the next 0:00:11.240 --> 0:00:12.319 one hundred years. 0:00:12.400 --> 0:00:12.640 Now. 0:00:12.880 --> 0:00:15.880 They already blew it once in eighteen seventy three when 0:00:15.880 --> 0:00:20.320 the world shifted monetary systems and China chose wrong, losing 0:00:20.360 --> 0:00:24.079 its leadership on the global stage. Now, while headlines scream 0:00:24.120 --> 0:00:27.880 about tariffs and trade deals, behind the scenes, a new 0:00:28.040 --> 0:00:29.760 monetary revolution is underway. 0:00:29.920 --> 0:00:30.760 I'm Mark Moss. 0:00:30.800 --> 0:00:34.560 I've spent two decades tracking money markets and the geopolitical 0:00:34.600 --> 0:00:38.520 shifts that shape empires. My video from four years ago 0:00:38.840 --> 0:00:41.720 called out China's big mistake, and now it's time for 0:00:41.800 --> 0:00:43.600 an update. So in this video, I'm going to show 0:00:43.600 --> 0:00:47.360 you what China missed, what the US just did, and 0:00:47.440 --> 0:00:51.159 why the shift will redefine global power for the next century. 0:00:51.240 --> 0:00:54.720 Because this isn't just a trade war, it's a monetary war, 0:00:54.920 --> 0:00:59.640 and Trump's trade offensive is the spark that's magnifying the consequences. Now, 0:01:00.040 --> 0:01:02.600 almost no one is connecting these dots. But once you 0:01:02.640 --> 0:01:04.280 see it, you can't unsee it. 0:01:04.680 --> 0:01:05.360 So let's go. 0:01:07.440 --> 0:01:09.160 All right, So we're getting right into this, and we're 0:01:09.160 --> 0:01:12.640 talking about on the surface, it seems like a trade war. 0:01:12.880 --> 0:01:13.160 Now. 0:01:13.360 --> 0:01:15.360 A couple days ago, at the time of this recording, 0:01:15.400 --> 0:01:18.360 we had what Trump was calling Liberation Day, which is 0:01:18.480 --> 0:01:20.040 we're going to stop letting the world take advantage of 0:01:20.040 --> 0:01:23.560 the United States. We're going to put retaliatory or even 0:01:23.600 --> 0:01:25.880 tariffs on each other to even out the playing field. 0:01:26.160 --> 0:01:28.399 And there was a big announcement. Trump had this big 0:01:28.720 --> 0:01:31.440 board showing all the different tariff rates against each of 0:01:31.520 --> 0:01:35.240 these individual countries. Now, since that time, the world has 0:01:35.280 --> 0:01:37.800 gone into a tailspin. We've seen the S and P 0:01:37.920 --> 0:01:40.920 five hundred start to crater down, as you can see 0:01:40.959 --> 0:01:43.880 this gap in the market right here showing the big 0:01:43.920 --> 0:01:47.039 big step down. The Nasdaq doing the same thing with 0:01:47.160 --> 0:01:50.040 these big gaps as it's dropping down. And so the 0:01:50.080 --> 0:01:52.360 world is sort of in a panic. But I think 0:01:52.400 --> 0:01:54.160 they're watching sort of the wrong thing. 0:01:54.160 --> 0:01:54.280 Now. 0:01:54.360 --> 0:01:57.320 People say that Trump is playing forty chess, So it's 0:01:57.360 --> 0:01:58.760 not just the Tterarff's just forty chess. 0:01:58.840 --> 0:02:01.640 Well, I won't lay out the entire playbook, although I'm 0:02:01.680 --> 0:02:02.200 working on that. 0:02:02.240 --> 0:02:03.760 If you want to video on that, let me know. 0:02:03.960 --> 0:02:06.040 But let's talk about a big piece of this now 0:02:06.280 --> 0:02:08.000 since then, there's already been. 0:02:07.960 --> 0:02:09.120 A lot of movement. So a lot of people say, 0:02:09.120 --> 0:02:09.919 it's the art of the deal. 0:02:10.160 --> 0:02:13.200 So he throws out this as an anchor, and then 0:02:13.200 --> 0:02:14.120 he negotiates back. 0:02:14.160 --> 0:02:16.760 So fifty percent tariffs on you, Okay, we'll take ten 0:02:17.080 --> 0:02:17.440 or whatever. 0:02:17.480 --> 0:02:20.280 So we use these as negotiating tactics, and it seems 0:02:20.320 --> 0:02:21.600 to be working. As a matter of fact, at the 0:02:21.639 --> 0:02:24.120 time of this recording, a lot of the world is 0:02:24.240 --> 0:02:26.639 already coming around and wanted to strike deals. We've seen 0:02:26.720 --> 0:02:31.679 India announce that they're gonna even the playing field, Argentina, Vietnam, 0:02:32.000 --> 0:02:34.240 lots of countries at the time it's recording. As of today, 0:02:34.280 --> 0:02:37.160 as of this morning, even the EU says that they 0:02:37.200 --> 0:02:38.160 will probably cave. 0:02:37.960 --> 0:02:40.200 Which seems like the EU is gonna hold out. So 0:02:40.360 --> 0:02:41.560 all of these countries are coming around. 0:02:41.560 --> 0:02:43.520 As a matter of fact, Trump said that over fifty 0:02:43.639 --> 0:02:46.720 nations have agreed to come in and work this out, 0:02:46.919 --> 0:02:50.440 but China seems to be wanted to fight back. 0:02:50.520 --> 0:02:50.960 As a matter of. 0:02:50.960 --> 0:02:54.320 Fact, China announced retaliatory tariffs against the United States and 0:02:54.360 --> 0:02:56.920 they will probably be the last one to come to 0:02:56.960 --> 0:02:59.600 the table. Why is that, Well, we're gonna break that down. 0:03:00.080 --> 0:03:02.799 We have to understand this is not just a trade war. 0:03:02.840 --> 0:03:06.200 This is not just about goods or prices or jobs. 0:03:06.480 --> 0:03:09.640 This is about monetary policy. And this is where the 0:03:09.680 --> 0:03:14.320 two big dogs want to battle this out, the monetary policy. Okay, So, 0:03:15.919 --> 0:03:17.840 if you watch my videos for a long time, I 0:03:17.919 --> 0:03:20.919 used to do this where let's go back in time. 0:03:21.000 --> 0:03:24.000 Let's go back in history and see what the historical 0:03:24.080 --> 0:03:26.799 precedent is for what we're witnessing right now. So let's 0:03:26.840 --> 0:03:30.079 go jump back about one hundred and fifty years. By 0:03:30.080 --> 0:03:32.040 the way, if you've been watching my videos long enough 0:03:32.080 --> 0:03:34.440 to remember this, drop me in the comments. Let me 0:03:34.480 --> 0:03:37.040 know how long you've been watching and supporting this channel. Okay, 0:03:37.240 --> 0:03:41.880 let's go back to China's first fatal mistake. Now we're 0:03:41.880 --> 0:03:44.520 going back to about eighteen seventy three, and this is 0:03:44.560 --> 0:03:48.200 when the whole world monetary system shifted as well. 0:03:48.360 --> 0:03:49.200 You see, at the. 0:03:49.160 --> 0:03:52.240 Time, the world had what was known as a bi metallities. 0:03:52.600 --> 0:03:55.400 We had gold and we had silver, Okay, And what 0:03:55.520 --> 0:03:59.160 happened is the world started changing, the world order started changing, 0:03:59.520 --> 0:04:02.360 and the entire world, or most of the developed world, 0:04:03.000 --> 0:04:05.640 that is, the United States and countries in Europe, decided 0:04:05.640 --> 0:04:07.920 that they were going to go to a gold standard. 0:04:08.440 --> 0:04:10.720 The problem is for countries like China is they had 0:04:10.760 --> 0:04:12.880 a bunch of silver and they didn't want to go 0:04:12.920 --> 0:04:14.880 onto a gold standard because they had silver, so they 0:04:14.880 --> 0:04:17.400 were going to stay on a silver standard. And so 0:04:17.480 --> 0:04:20.680 we can see some of the headlines from this era 0:04:21.000 --> 0:04:24.960 say like how the silver standard wrecked China's economy. So 0:04:25.200 --> 0:04:28.080 by deciding to stay in the old monetary order when 0:04:28.120 --> 0:04:31.760 the new monetary order was shifted, it wrecked their economy. 0:04:31.960 --> 0:04:34.080 And it didn't just wreck their economy, as a matter 0:04:34.080 --> 0:04:36.200 of fact, we can see that it did a lot 0:04:36.279 --> 0:04:38.400 more than that. So here we have the year eighteen 0:04:38.400 --> 0:04:41.800 seventy three marked a turning point in monetary history, and 0:04:41.839 --> 0:04:44.360 that is when the world shifted. So the German Empire 0:04:45.160 --> 0:04:47.719 went from silver to a gold mark. In September, the 0:04:47.760 --> 0:04:51.239 Parish Mint limited silver coinage into the double gold silver standard, 0:04:51.279 --> 0:04:53.320 so they went to gold. Earlier that year, the US 0:04:53.360 --> 0:04:56.240 Congress legislative phasing out of the temporary paper currency and 0:04:56.279 --> 0:04:59.240 replaced it with gold dollar. United Kingdom already on the 0:04:59.240 --> 0:05:01.200 gold by the end of the eight eighteen seventies, silver 0:05:01.279 --> 0:05:04.840 which until eighteen seventy three, that's the turning point, had 0:05:04.880 --> 0:05:07.760 been on an equal footing with gold became a secondary 0:05:07.760 --> 0:05:13.279 currency medal used by mostly periphery countries. So leading countries 0:05:13.320 --> 0:05:15.200 made the move. If you wanted to be a third 0:05:15.320 --> 0:05:17.480 rate country, perifery nation, you stayed with that. 0:05:17.520 --> 0:05:18.880 The montary impact was stark. 0:05:19.040 --> 0:05:21.440 Between eighteen seventy three and the end of the decade, 0:05:21.640 --> 0:05:26.599 silver depreciated by some twenty percent, and so as China 0:05:26.720 --> 0:05:29.000 decided not to go to gold and decided to hang 0:05:29.040 --> 0:05:32.680 onto silver, it continued to lose its purchasing power. Now 0:05:32.720 --> 0:05:35.120 it lost twenty percent, ended up losing thirty percent. So 0:05:35.440 --> 0:05:39.960 the nation China saw their national. 0:05:39.760 --> 0:05:42.120 Purchasing power dropped by thirty percent. 0:05:42.320 --> 0:05:44.880 It's a massive, a massive drop in standard of living. 0:05:45.040 --> 0:05:48.600 We can see by nineteen thirty three. In November of 0:05:48.600 --> 0:05:51.440 that year, the Chinese government threw in the towel. They 0:05:51.520 --> 0:05:53.560 nationalized what silver was left, and they put the country 0:05:53.560 --> 0:05:57.159 on a paper currency standard and said, so they decided 0:05:57.200 --> 0:06:00.800 finally to capitulate. Finally, okay, we lost the world went 0:06:00.839 --> 0:06:01.160 to gold. 0:06:01.160 --> 0:06:01.520 We didn't. 0:06:01.520 --> 0:06:03.120 We stayed and said, okay, we lost thirty percent of 0:06:03.160 --> 0:06:05.680 our personal power. Okay, let's throw on the towel and 0:06:05.760 --> 0:06:09.440 we'll eventually capitulate. And we'll move over after they lost 0:06:09.480 --> 0:06:11.359 thirty percent. But it wasn't just thirty percent they lost. 0:06:11.560 --> 0:06:12.719 They lost their. 0:06:12.600 --> 0:06:16.080 Position as one of the global dominant world leaders. They 0:06:16.120 --> 0:06:19.200 became a prefer nation, as it said. Now, that was 0:06:19.240 --> 0:06:22.280 their first fatal mistake. Now they've spent the last one 0:06:22.360 --> 0:06:26.479 hundred years were longer, trying to catch up, trying to 0:06:26.520 --> 0:06:29.159 fix or right the wrongs of that past. So for 0:06:29.160 --> 0:06:31.800 the last one hundred years they've been trying to get 0:06:31.800 --> 0:06:33.640 back to the gold standard. They've been trying to get 0:06:33.680 --> 0:06:36.240 as much gold as they possibly could, and they've been 0:06:36.320 --> 0:06:40.520 adding more gold during this recent time than any other. 0:06:40.480 --> 0:06:41.440 Nation out there. 0:06:41.640 --> 0:06:43.880 As a matter of fact, we can see that China 0:06:44.400 --> 0:06:48.080 has been rumored to be laying the foundation for the 0:06:48.120 --> 0:06:52.320 next world gold standard system. This was written back in 0:06:52.400 --> 0:06:55.920 twenty sixteen, so they appear to be laying the foundation 0:06:56.040 --> 0:06:59.160 to bring the world back to the gold standard. 0:06:58.760 --> 0:06:59.359 Like it used to be. 0:06:59.680 --> 0:07:02.400 For those that don't understand, President Richard Nixon nineteen seventy 0:07:02.600 --> 0:07:05.640 one cut the ties to the gold standard, so they're 0:07:05.640 --> 0:07:08.080 saying bring it back to that. Now we can see 0:07:08.120 --> 0:07:11.360 that China has been buying more and more gold as 0:07:11.440 --> 0:07:14.440 the trade war drags on. Now this is twenty nineteen. 0:07:14.920 --> 0:07:17.520 Trade war drags on twenty nineteen. Why is that, Well, 0:07:18.080 --> 0:07:21.239 in Trump's first term is when the tariffs really started. 0:07:21.680 --> 0:07:24.360 That's when this trade war started between the US and China, 0:07:24.600 --> 0:07:27.560 two dominant superpowers, and so this has been going on 0:07:27.640 --> 0:07:29.240 for a long time. They've been buying more and more 0:07:29.240 --> 0:07:32.760 gold as this trade war drags on. Now, how much 0:07:32.880 --> 0:07:36.400 gold do they have? Well, we can see that number one. 0:07:36.440 --> 0:07:38.120 We don't really know, but let's do a little bit 0:07:38.120 --> 0:07:41.640 of math. We know that the US gold holdings officially, officially, 0:07:41.640 --> 0:07:43.280 the record shows, which by the way, I don't know 0:07:43.280 --> 0:07:46.200 if it's been audited, shows the US owns about eighty 0:07:46.280 --> 0:07:50.040 one hundred eight one hundred and thirty three tons of. 0:07:49.960 --> 0:07:53.000 Gold in Fort Knox. We want to see that audited. 0:07:53.320 --> 0:07:56.800 But China's officially declared holdings. This is where it gets sticky. 0:07:56.800 --> 0:08:00.240 Officially holdings is one, nine hundred and forty eight tons, 0:08:00.560 --> 0:08:03.040 make up just three percent of his three point two 0:08:03.120 --> 0:08:07.040 trillion and four exchange holdings, but the real number is 0:08:07.120 --> 0:08:07.920 much larger than that. 0:08:08.560 --> 0:08:10.160 China has been the world's largest. 0:08:09.840 --> 0:08:12.960 Gold producer since two thousand and seven, the largest producer 0:08:13.480 --> 0:08:16.320 this past decade. It is produced about fifteen percent of 0:08:16.440 --> 0:08:19.280 all the gold miners in the world. Last year produced 0:08:19.280 --> 0:08:21.840 three hundred and eighty tons. That's twenty percent more than 0:08:21.880 --> 0:08:25.080 the world's second largest producer, which is Australia. So not 0:08:25.120 --> 0:08:29.560 only is it the largest producer, but it's also one 0:08:29.560 --> 0:08:31.800 of the largest buyers. But I want you to understand 0:08:31.840 --> 0:08:34.440 what its policy was. It's key for understanding this. We 0:08:34.480 --> 0:08:38.040 can see that China has roughly mined about sixty five 0:08:38.520 --> 0:08:42.240 hundred tons mine sixty five hundred tons. Now, the key 0:08:42.320 --> 0:08:45.280 behind this is that the gold it mines, it keeps. 0:08:45.640 --> 0:08:49.000 Exporting of domestic mine production is not allowed. So basically 0:08:49.080 --> 0:08:51.079 China says, hey, come minu as much gold as you 0:08:51.120 --> 0:08:52.199 want in China. 0:08:52.240 --> 0:08:53.960 But you have to sell it to us. 0:08:54.000 --> 0:08:56.920 You can't export that gold. So all of this being 0:08:56.960 --> 0:09:00.600 produced in China is being bought by China. Chinese mining 0:09:00.600 --> 0:09:03.000 companies have also been buying assets abroad, So not only 0:09:03.040 --> 0:09:04.840 have they've been mined in China Sunday China, but they've 0:09:04.840 --> 0:09:08.240 also been buying assets abroad Africa, South America, Asia, et cetera. 0:09:09.000 --> 0:09:11.640 The world's biggest producer, China is the world's biggest import 0:09:11.720 --> 0:09:13.960 So not only are the largest producer and the buyt all, 0:09:14.040 --> 0:09:16.720 they're also the biggest buyer. At the same time, over 0:09:16.760 --> 0:09:18.880 six thousand tons is entered the country since two thousand. 0:09:19.320 --> 0:09:21.360 Of that cumulat gold production since two thousand, you. 0:09:21.320 --> 0:09:24.160 Get to a figure of about thirteen thousand, two hundred tons. 0:09:24.280 --> 0:09:25.880 This is like back of a napkin math. A lot 0:09:25.880 --> 0:09:28.240 of it's like hidden. We'll skip ahead here. 0:09:28.400 --> 0:09:29.720 We can see that a lot of it doesn't go 0:09:29.800 --> 0:09:32.640 through the main channels. Since two thousand and eight, roughly 0:09:32.720 --> 0:09:37.000 twenty thousand tons have been withdrawn from the Shanghai Gold Exchange. 0:09:37.160 --> 0:09:40.000 So if we add all this up, the rumors are 0:09:40.040 --> 0:09:44.640 that China could own somewhere between twenty to thirty thousand 0:09:44.760 --> 0:09:48.920 tons of gold. A small business owner, are you buried 0:09:49.000 --> 0:09:51.400 in all types of work keeping you from the real 0:09:51.480 --> 0:09:54.120 thing that makes you money? Well that's where Just Works 0:09:54.120 --> 0:09:56.320 comes in. They're the all in one platform that supports 0:09:56.400 --> 0:09:59.320 small business growth. You can get all their tools that 0:09:59.400 --> 0:10:02.800 help with ben fits like payroll and HR and compliance 0:10:03.040 --> 0:10:07.160 with transparent pricing. 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So we have the two big 0:10:46.240 --> 0:10:48.120 dogs come into the table. 0:10:48.120 --> 0:10:50.520 And the US now is trying to force not just 0:10:50.640 --> 0:10:53.000 tariffs on them, not just trade tariffs. But this is 0:10:53.040 --> 0:10:55.360 a monetary shift of monetary restructuring. 0:10:55.600 --> 0:10:55.800 Now. 0:10:55.960 --> 0:10:59.760 Rumors also are that maybe China's paving the way for 0:10:59.840 --> 0:11:03.000 a gold back you on, and so they might actually 0:11:03.040 --> 0:11:04.960 want to back their currency with gold, which then means 0:11:05.000 --> 0:11:08.960 they sort of in the dollar dominance. Other nations would 0:11:09.040 --> 0:11:11.959 rather buy a gold back currency like a Chinese yuan. Now, 0:11:12.640 --> 0:11:14.040 I've done other videos on this. If you want to 0:11:14.040 --> 0:11:15.640 see that, we'll link to it down below if you 0:11:15.640 --> 0:11:17.920 want to understand more about that, But that's not the 0:11:18.000 --> 0:11:18.720 key point. 0:11:18.520 --> 0:11:20.000 That we want to dig into right now. 0:11:20.240 --> 0:11:23.400 Okay, what we really want to understand is that the 0:11:23.480 --> 0:11:26.480 last time this happened, as the world shifted to a 0:11:26.640 --> 0:11:29.560 new monetary standard, China decide to stick with the old 0:11:29.600 --> 0:11:32.440 standard and they lost a position in the world. Now 0:11:32.480 --> 0:11:36.200 we're seeing a new monetary evolution while China is still 0:11:36.200 --> 0:11:38.079 trying to build the previous one. 0:11:38.120 --> 0:11:38.959 What am I talking about. 0:11:39.080 --> 0:11:42.439 Well, of course, bitcoin has been the best performing asset 0:11:42.520 --> 0:11:45.679 in the world. It is the most scarce digital asset 0:11:45.840 --> 0:11:49.240 in the world, and right now we have people, corporations, 0:11:49.320 --> 0:11:52.280 governments all jumping into it. Now, I will talk about 0:11:52.280 --> 0:11:55.120 this as an evolution, monetary evolution and the reason why 0:11:55.240 --> 0:11:58.000 if you look back through thousands of years of history 0:11:58.040 --> 0:12:01.600 of monetary history, you understand that it's an evolutionary process. 0:12:01.600 --> 0:12:04.880 So we've had feathers, rock, seashells, all types of things 0:12:04.880 --> 0:12:07.880 become money. Eventually gold emerged as the best form money. 0:12:07.880 --> 0:12:10.600 But it's an evolutionary process. It first starts as a 0:12:10.640 --> 0:12:12.760 collectible like oh, look at this cool rock, or this 0:12:12.800 --> 0:12:15.520 cool feather, the cool seashell, Look those cool baseball card 0:12:16.080 --> 0:12:19.240 or whatever it is. Now some not most collectibles don't, 0:12:19.400 --> 0:12:22.960 but some become a store of value. So the wealthy 0:12:23.080 --> 0:12:26.480 store their wealth in collectible. So for example, not all 0:12:26.480 --> 0:12:29.000 baseball cards, but some baseball cards are worth a lot 0:12:29.040 --> 0:12:32.520 of money. Not every painting, but some paintings, some old cards. 0:12:32.760 --> 0:12:37.160 So some collectibles do become a store of value. Then 0:12:37.679 --> 0:12:40.960 some things could become a medium of exchange that we 0:12:41.080 --> 0:12:43.640 use it for exchanges, for buying goods and services, but 0:12:43.720 --> 0:12:47.840 only if it has the right attributes, which are portable, durable, divisible, recognizable, 0:12:47.880 --> 0:12:52.079 fungible things like that. So the mona lisa is not divisible, 0:12:52.760 --> 0:12:55.920 A cow is divisible, but it's not fungible. One like 0:12:56.040 --> 0:12:59.160 a rabbi is not the same as a liver. A 0:12:59.200 --> 0:13:01.680 banana would be no good because it's not durable. But 0:13:01.840 --> 0:13:06.280 gold fit all of those things. However, it's not very portable, right, 0:13:06.320 --> 0:13:08.560 It's very hard to move large amounts of gold. So 0:13:08.800 --> 0:13:11.720 now we understand that bitcoin was a collectible. Oh it's cool, 0:13:11.760 --> 0:13:14.800 magic Internet money. Today we know that the United States 0:13:14.800 --> 0:13:17.040 government calls it a store of value and it's put 0:13:17.040 --> 0:13:20.120 it on the Strategic Reserve. But we also know that 0:13:20.160 --> 0:13:22.280 it has better attributes that could allow it to become 0:13:22.320 --> 0:13:24.840 a meni of exchange. So we're seeing it go through 0:13:24.880 --> 0:13:30.480 this monetary evolution and we understand that in these technology cycles, 0:13:30.520 --> 0:13:33.319 we have a fifty year cycle as they reach adoption, 0:13:33.559 --> 0:13:36.880 and there's two distinct phases. First one was the retail 0:13:37.000 --> 0:13:38.880 phase twenty ten to twenty twenty. 0:13:38.880 --> 0:13:39.480 We're past that. 0:13:39.800 --> 0:13:41.760 Twenty twenty to twenty thirty is what we call the 0:13:41.880 --> 0:13:45.720 institutional phase, where Wall Street comes in, the corporations come in, 0:13:45.920 --> 0:13:48.840 the sovereigns come in, and we're clearly. 0:13:48.520 --> 0:13:49.360 In that phase. 0:13:49.559 --> 0:13:52.440 Now we don't know all the implications because we're still 0:13:52.520 --> 0:13:56.440 in the evolutionary phase. But this is where China's second 0:13:56.440 --> 0:13:57.559 fatal mistake comes in. 0:13:58.200 --> 0:13:58.360 Now. 0:13:58.400 --> 0:14:02.560 You see China is they had a scarcity mindset because 0:14:02.600 --> 0:14:05.400 it's a communist country, so they have to protect their protection. 0:14:05.520 --> 0:14:07.080 So they can't allow their people to look on the 0:14:07.120 --> 0:14:08.920 internet to see what other people are doing in other 0:14:08.960 --> 0:14:11.160 parts of the world. They can't allow other technologies to 0:14:11.160 --> 0:14:13.240 come in. They have to have this scarcity mindset, so 0:14:13.280 --> 0:14:17.840 when people start innovating with different things, they can miss 0:14:17.880 --> 0:14:20.360 out on that they want to stop it before it 0:14:20.360 --> 0:14:23.320 takes office, so they missed the innovation. So, for example, 0:14:23.600 --> 0:14:26.760 they had a lot of bitcoin in China, but they 0:14:26.800 --> 0:14:28.440 banned it over and over and over. As a matter 0:14:28.440 --> 0:14:32.240 of fact, China banned bitcoin thirteen times since twenty twelve. 0:14:32.600 --> 0:14:34.320 Didn't work the first time, the second time, and third time, 0:14:34.320 --> 0:14:35.880 Well let's try thirteen times. 0:14:36.720 --> 0:14:39.880 And it's because it can't be banned, it can't be stopped. 0:14:39.880 --> 0:14:41.960 But what they could do, and this is where really 0:14:42.000 --> 0:14:45.080 the second fatal mistake really kicked in, is that China 0:14:45.240 --> 0:14:49.840 had over sixty percent of the bitcoin network. 0:14:50.120 --> 0:14:53.960 Mining hash power in their country. They had control of 0:14:54.000 --> 0:14:55.320 it bitcoin miners. 0:14:55.560 --> 0:14:59.600 China's cryptocurrency crack down pushes companies overseas. 0:14:59.160 --> 0:15:02.360 So they decided to get all of the mining out 0:15:02.360 --> 0:15:04.600 of China. Now what do they do with gold mining? 0:15:04.600 --> 0:15:06.520 Whe They're the largest producer and the largest buyer. 0:15:06.760 --> 0:15:08.640 So with gold mining, come mine all you want, but 0:15:08.760 --> 0:15:11.160 sell it to us. They had all the bitcoin mining 0:15:11.200 --> 0:15:13.400 happening in China, they could have done the same policy, 0:15:13.520 --> 0:15:14.840 Hey you can mine it. 0:15:14.760 --> 0:15:17.280 Here, but you have to sell it to us. But 0:15:17.400 --> 0:15:20.680 instead they pushed it all out. Now where did it go. 0:15:20.960 --> 0:15:23.440 China's kicking out more than half the world's bitcoin miners, 0:15:23.520 --> 0:15:26.200 about sixty percent, and a whole lot of them could 0:15:26.200 --> 0:15:29.320 be headed to Texas. So the United States became the 0:15:29.320 --> 0:15:31.960 main beneficiary of this. And that's why you hear Donald 0:15:31.960 --> 0:15:36.720 Trump saying, now we want all the bitcoin that's created 0:15:36.760 --> 0:15:39.640 to be created in America. He has claimed it to 0:15:39.640 --> 0:15:42.360 be a strategic initiative for the US to be the 0:15:42.400 --> 0:15:46.640 world dominant leader in bitcoin. Create it here, store it 0:15:46.720 --> 0:15:50.280 here in the US has moved first partly because we're 0:15:50.280 --> 0:15:53.240 not a communist country. We can have innovation. Now we 0:15:53.280 --> 0:15:56.160 have some of the largest most influential people in the 0:15:56.160 --> 0:15:58.440 world or in the United States and the world, like 0:15:58.560 --> 0:16:01.840 Larry Fink from Black Rile, who is the largest asset 0:16:01.880 --> 0:16:05.480 manager in the world, who has now said that bitcoin 0:16:06.040 --> 0:16:09.080 is an asset. Bitcoin is a store by asset. We 0:16:09.120 --> 0:16:12.720 have Scopasent, the new Treasury Secretary was just on Tucker 0:16:12.760 --> 0:16:14.920 the other day and they said, it is a store value. 0:16:14.920 --> 0:16:17.960 Bitcoin is a store value. We have Howard Lutnik. He 0:16:18.120 --> 0:16:20.560 is the Secretary of Commerce for the new Trump administration. 0:16:20.920 --> 0:16:22.880 And before I tell you what he said, let's just 0:16:22.960 --> 0:16:27.800 hear from him directly. Multi billionaire Wall Street fund manager 0:16:27.840 --> 0:16:30.560 and now the Secretary of Commerce. Let's hear directly from him. 0:16:30.760 --> 0:16:33.200 It's the easiest way to get a clear view of 0:16:33.240 --> 0:16:34.720 where bitcoin is going. 0:16:34.560 --> 0:16:35.600 Over the next five years. 0:16:35.760 --> 0:16:38.440 Let's take a look at the last five right the 0:16:38.560 --> 0:16:44.360 last five Bitcoin has been an outsider in the finance business, 0:16:44.560 --> 0:16:49.320 becoming closer and closer and closer. Right now, there's an 0:16:49.320 --> 0:16:54.720 ETF just starting to go a little bit mainstream media. 0:16:55.080 --> 0:16:59.200 You will see all the traditional financial service companies, that 0:16:59.280 --> 0:17:03.080 big banks, the grograge companies, they're all gonna go headfirst 0:17:03.120 --> 0:17:08.320 into Bigtin Tom. That's what's going to happen, and it's 0:17:08.359 --> 0:17:12.840 coming and when that happens, you're going to see bigcoin move. 0:17:13.119 --> 0:17:16.760 They're very very strong positive direction. 0:17:17.119 --> 0:17:18.760 So that's why I'm a fan of bigtoin. 0:17:19.119 --> 0:17:23.119 It's going to go much higher. He always bounces around 0:17:23.119 --> 0:17:26.160 like any other financial asset. But ultimately, over the next 0:17:26.160 --> 0:17:30.439 five years, as it gets invited into this party, up we. 0:17:30.600 --> 0:17:33.280 Got so you can hear he said that every institution 0:17:33.480 --> 0:17:35.560 wants to get in and this will just push the 0:17:35.640 --> 0:17:40.080 price up, up, up. And even the Trump family, his 0:17:40.160 --> 0:17:42.160 son Eric Trump, was just on TV saying how they're 0:17:42.200 --> 0:17:45.160 pivoting from real estate, which the Trump name is anonymous 0:17:45.160 --> 0:17:48.440 with real estate, and they're pivoting into bitcoin. Now, this 0:17:48.520 --> 0:17:51.760 is all happening right now, and it's not just all 0:17:51.800 --> 0:17:53.960 of those individuals I mentioned, Like I said, this is 0:17:54.040 --> 0:17:57.679 a new global asset. Because now the United States, with 0:17:57.800 --> 0:18:01.159 the dominant global position as the US dollars the reserve 0:18:01.200 --> 0:18:04.520 currency of the world, has made it a strategic reserve. 0:18:04.560 --> 0:18:07.520 They've created a thesis where they said, again, Trump wants 0:18:07.520 --> 0:18:09.800 it all made here, he wants the US to lead 0:18:09.840 --> 0:18:13.560 in this, and they're building a strategic reserve of bitcoin. 0:18:13.600 --> 0:18:16.800 Now, back to China, they had the dominance, they had the. 0:18:16.720 --> 0:18:19.879 Bitcoin there, they had sixty percent of the hash power 0:18:19.960 --> 0:18:22.520 in their country. But then they kicked it all out. 0:18:22.760 --> 0:18:25.159 So the US is now home to a majority of 0:18:25.160 --> 0:18:28.240 the bitcoin hash rate. Now the US is home to 0:18:28.560 --> 0:18:33.280 public and private reserves of bitcoin. The United States has 0:18:33.320 --> 0:18:36.359 the dominant upper hand while China is still trying to 0:18:36.359 --> 0:18:40.440 compete for the old monetary system of gold. The US 0:18:40.880 --> 0:18:43.520 and the world is moving into something different. And so really, 0:18:43.560 --> 0:18:46.600 if we look at the situation, it's not just about trade. 0:18:46.640 --> 0:18:49.280 It's not just about teriffs. It's monetary wars. 0:18:49.320 --> 0:18:52.160 The tariffs are a distraction for what's really going on. 0:18:52.560 --> 0:18:57.480 The real war is about the monetary system, because whoever 0:18:57.520 --> 0:19:02.480 controls the money controls the world. Now China keeps banning innovation, 0:19:02.800 --> 0:19:05.080 they keep stifling it, they keep pushing it out, and 0:19:05.119 --> 0:19:07.280 so they're not able to take advantage of things like this. 0:19:07.400 --> 0:19:10.960 It's a real conundrum that countries find themselves in. If 0:19:11.000 --> 0:19:13.720 we allow the people to be free and have access 0:19:13.720 --> 0:19:17.480 to the Internet and ideas and information, they may reject 0:19:17.640 --> 0:19:21.560 our authoritarian views. But if we don't allow them to 0:19:21.640 --> 0:19:24.480 have that information, then we stifle our own growth. And 0:19:24.520 --> 0:19:27.240