Speaker 1: Hey everyone, welcome back to another episode of the Mark
Speaker 1: mass Show where we are talking about the decentralized revolution.
Speaker 1: Of course, we're talking about politics, finance, and technology all
Speaker 1: coming together to change the world as we know it.
Speaker 1: Of course that is bitcoin that is doing that now. UM.
Speaker 1: I try to bring you everything that you need, the education,
Speaker 1: the latest breaking news, and of course some interesting guests
Speaker 1: to give you some different insight in some different segments
Speaker 1: of the market. And that's what we're about to do
Speaker 1: right now. I'm sitting down joining the studio with Sam Callahan.
Speaker 1: You can find him on Twitter at Sam Cala c
Speaker 1: A L l a h. And he's a bitcoin analyst
Speaker 1: with Swan Bitcoin. UM. Anyway, Sam, thanks for joining me today. Yeah, Mark,
Speaker 1: thanks for having me on Glad to speak. Yeah. We
Speaker 1: uh we were just recently hanging out in uh in
Speaker 1: Vegas at the tone Vey's Unconfiscatable Conference. That was a
Speaker 1: pretty good time, great time. Yeah, super fun. I uh,
Speaker 1: I think I'm just barely getting my voice back from
Speaker 1: that man after a couple of day. It seems like
Speaker 1: it's always yeah, man, it's like the first thing that
Speaker 1: goes every time. I was like it was it was
Speaker 1: a fun event. It was. It was so so busy.
Speaker 1: I remember you you came up and You're like, oh,
Speaker 1: we're getting together next Thursday, right, And I was like,
Speaker 1: what the heck is next Thursday? Uh. But but but
Speaker 1: it didn't mean I wasn't looking forward to this because
Speaker 1: I was, UM, something that that's a conversation I've really
Speaker 1: been looking forward to having, and so I'm excited to
Speaker 1: dig into it with you today. UM. I've been talking
Speaker 1: a lot about UM one. Uh. People are thinking like, oh, this,
Speaker 1: this Russia, this Russia Ukraine war couldn't lead in into
Speaker 1: a World War three? Um. And I think they're thinking,
Speaker 1: you know what a war break up between US and China,
Speaker 1: or Russia, Russia and the US with nuclear war happened,
Speaker 1: things like that, And a lot of times I say, well,
Speaker 1: I think we're already in a World War three. Um.
Speaker 1: And that World War three is is is the government's
Speaker 1: against the people. But even more than just the governments,
Speaker 1: it's really what I've been calling a coup of the
Speaker 1: central bankers, where the central bankers are really taking over
Speaker 1: the world. Typically a revolution would be the people revolting
Speaker 1: against the government, but this is almost like a revolution
Speaker 1: from the top down. And Um, I've been looking at
Speaker 1: this chart which I've been kind of building my worldview
Speaker 1: off of, and I think you we talked about this,
Speaker 1: and it's this global public private partnership, and it's like
Speaker 1: the ORG chart, and it has the B I S
Speaker 1: at the very top of that, which is, of course,
Speaker 1: is the Bank for International Settlements. Then below that is
Speaker 1: the central banks and those are like the policymakers, and
Speaker 1: below that is then like World Economic Forum policymakers, and
Speaker 1: then below that distributors, the I, M, f U, N
Speaker 1: W h O, and then below that, so here we
Speaker 1: are like four levels. Down is the actual governments, the enforcers, um.
Speaker 1: But at the top is this B I S. And
Speaker 1: most people have no idea, they don't even heard of
Speaker 1: the B I S. Um. I know you've been doing
Speaker 1: a lot of research into that, So what what the
Speaker 1: heck is this whole B I S thing? Um. I
Speaker 1: think you're spot on, because what we have here is
Speaker 1: these large non governmental organizations that kind of work in
Speaker 1: a stratosphere above governments. And a lot of people think
Speaker 1: that the financial industry or infrastructure kind of ends with
Speaker 1: the Treasury and the Federal Reserve. But we live in
Speaker 1: a very globalized economy, and there's these large, unelected non
Speaker 1: governmental organizations like the Bank of International Settlements that has
Speaker 1: a lot of influence on the policy that governments make.
Speaker 1: And so the Bank of International Settlements is the best
Speaker 1: way to think about it is it's like a bank
Speaker 1: for central banks. So think about the services that JP
Speaker 1: Morgan does or well as far Ago does for a
Speaker 1: regular everyday person and just bring that up. Where the
Speaker 1: central banks are the clients, and they go to the
Speaker 1: BIZ and they provide services such as short term liquidity
Speaker 1: and credit. They do foreign currency exchanges and large transactions
Speaker 1: of like gold swaps, and they charge fees and commissions
Speaker 1: to the central banks to use their services. So they're
Speaker 1: kind of like an international clearing house, uh for the
Speaker 1: central banks. And then they do a couple other things.
Speaker 1: They are kind of like a very elite event planner
Speaker 1: where they hold seminars and committees and conferences for central
Speaker 1: bankers in their headquarters in Switzerland. And they also, um
Speaker 1: they kind of have the best vantage point because they're
Speaker 1: above everything else where they collect they have the largest
Speaker 1: database of banking information in the world, and so they
Speaker 1: have a mainframe computer and they sweep all the data
Speaker 1: and they have a really good advantage point to to
Speaker 1: understand the flows of international finance. And so central banks
Speaker 1: and governments picked their brain as to what's going on
Speaker 1: in the plumbing of the financial system. So that's kind
Speaker 1: of the three things they do their bank for central banks,
Speaker 1: their event planner, and their you know, uh database Center
Speaker 1: for Financial Information m M. They got their hands and
Speaker 1: their tentacles and everything exactly exactly. Now, when I think
Speaker 1: about the Central Bank of the United States and the
Speaker 1: Federal Reserve, the Federal Reserve doesn't actually create money, right,
Speaker 1: they create reserves that go to the commercial banks, and
Speaker 1: the commercial banks, UM lend that money into existence when
Speaker 1: I'm buy a house, a car about something like that. Um.
Speaker 1: So the Federal Reserve gives reserves to the commercial banks. Um.
Speaker 1: What does the b I S do? Do they give
Speaker 1: reserves to this to the Federal Reserve. Well, they have
Speaker 1: a special drawing right, which is a kind of confusing.
Speaker 1: It's like a fiat money on top of fiat money
Speaker 1: that they can create and provide loans to distress nations
Speaker 1: and UM governments if they need to. And that's the SDR.
Speaker 1: That's the SDR. Yeah, and then the SDR is used
Speaker 1: as a unit of account for the Bank of International Settlements,
Speaker 1: and so a lot of times when these central banks
Speaker 1: are using uh, the bus accounts um there through the
Speaker 1: SDR and so it's it's kind of like this money
Speaker 1: on top of money, and it's it's pretty confusing. But
Speaker 1: they created it way back in the day. When we're
Speaker 1: talking about the trip and dilemma, people are familiar with
Speaker 1: that UM. But it was basically a way to take
Speaker 1: pressure and fill us in on go ahead and give
Speaker 1: us the high level of you on the trip and dilemma. Yeah,
Speaker 1: the trip and dilemma really stems from the old Breton
Speaker 1: Wood system when the US was the reserve currency of
Speaker 1: the world, and it was kind of when when they
Speaker 1: when they when they were yeah, sorry, different when it
Speaker 1: was a different system, right when when it was pegged
Speaker 1: to goal at five dollars now it's and then all
Speaker 1: the currencies were pegged to the dollar um because of that,
Speaker 1: because it was the reserve currency. If the US read
Speaker 1: ran large deficits, it was kind of a problem because
Speaker 1: if they ran large deficits, then the other nations would
Speaker 1: question if they had enough gold to back those dollars. Right,
Speaker 1: But if they reduced the deficits, then there was also
Speaker 1: a problem there because it would reduce the liquidity for
Speaker 1: the other nations. So basically it was always this problem
Speaker 1: of dilemma where they could never reduce their deficits. And
Speaker 1: so the CR was created to kind of try to
Speaker 1: take pressure off the dollar the reserve system by having
Speaker 1: a neutral bank provide reserves in this different currency than
Speaker 1: the dollar um. And now it's stuck around. So that
Speaker 1: was way back in the seventies and it's still still
Speaker 1: around today. Yeah. Now the I m F, I thought
Speaker 1: that I m F issues SDRs. Um, they get the
Speaker 1: SDRs from the b I S Like they somehow work
Speaker 1: together in that regard. Yeah, they exactly, They basically worked together.
Speaker 1: They both they both have the unit of account as
Speaker 1: THEIRS as the SDR. Okay, now, um, how much how
Speaker 1: much do we know about the origins of the B
Speaker 1: I S. We know a lot actually, Um, A quick
Speaker 1: overview on that, Yeah, yeah, quick overview is it really
Speaker 1: stems from the the Treaty of Versailles that ended World
Speaker 1: War One back and it was very unfair and Germany
Speaker 1: was basically they made to pay these really large war
Speaker 1: reparations that was basically impossible for them to pay because
Speaker 1: their productive capacity was destroyed. All the factories were destroyed,
Speaker 1: and um all their men died, their labor force were
Speaker 1: dead too, and so they couldn't grow economically after the
Speaker 1: war and pay these huge war reparations at the same time.
Speaker 1: So what did they do. They printed a ton of money,
Speaker 1: and then it was the hyper inflation of Weimar the
Speaker 1: Weimar Republic in the early nineteen twenties. Um, after they
Speaker 1: kind of stabilized in the mid nineteen twenties, a bunch
Speaker 1: of American investors started investing in Germany because it was
Speaker 1: the Roaring twenties over there, and they were just throwing
Speaker 1: money and everything, and they thought, well, Germany is gonna
Speaker 1: start rebuilding. This is a great investment opportunity. And then
Speaker 1: millions and millions of dollars flowed into Germany until nine
Speaker 1: when the stock market crashed and then all the money
Speaker 1: dried up, and then Germany was suddenly in a really
Speaker 1: bad position again where they were worried that they were
Speaker 1: going to have a second hyper inflationary event in ten years.
Speaker 1: And so from that it can engine came together and
Speaker 1: they said, Okay, we're gonna restructure these war reparations to
Speaker 1: make it more affordable for Germany to try to pay them.
Speaker 1: And we're going to create this neutral bank, this bank
Speaker 1: that's going to facilitate the war reparations and help move
Speaker 1: large funds across borders. UM kind of this large fund
Speaker 1: international clearing house that was created under international treaty in
Speaker 1: nineteen thirty and that was when the Bank of International
Speaker 1: Settlements was created, and it's still at the center of
Speaker 1: the financial system all these years later. There's so much
Speaker 1: there I want to dig into. I can't wait to
Speaker 1: ask some questions about that. I'll be right back with
Speaker 1: more about the b I S don't go away, all right,
Speaker 1: Welcome back here listening to the Markma Show. We're talking
Speaker 1: about the decentralized revolution that is changing the world as
Speaker 1: we know it now. One of the things that we
Speaker 1: need to know to understand the change of the world
Speaker 1: is to understand how the world is organized in the
Speaker 1: first place. I'm in the studio right now with Sam Callahan.
Speaker 1: You can find them on Twitter at Sam calls e
Speaker 1: A L hell eight H. He's a bitcoin analyst with
Speaker 1: Juan Bitcoin, which is a good place if you want
Speaker 1: to buy some bitcoin a place that I've used as well.
Speaker 1: And Sam was explained to us about the b I
Speaker 1: S the Bank of International Settlements, which is the central
Speaker 1: bank above central banks, and he was talking about the
Speaker 1: way they got their start. Now, Sam, you were saying that, UM,
Speaker 1: nineteen Treaty of Versailles, Germany had to pay these war reparations. Um,
Speaker 1: they printed all this money, they had sky high inflation, um,
Speaker 1: and then UM, the Bank of the National Settlements was
Speaker 1: like founded to kind of help deal with that situation. Um.
Speaker 1: Was it just like the richest people in Europe at
Speaker 1: the time came together to start the bank. Yeah. So
Speaker 1: it was, um, the same people. If you're familiar with, UM,
Speaker 1: the story of central banks, there's actually so there's the
Speaker 1: guy from the Bank of England and yeah, the Bank
Speaker 1: of England and the Reich, the Reich Bank. Um, it
Speaker 1: was the same characters who started kind of all of
Speaker 1: the central banking. Um, that started the BIZ. And And
Speaker 1: the reason why is they always wanted a bank bank
Speaker 1: that worked above governments because they felt that politicians were
Speaker 1: hinderance to them and they were pesky and they just
Speaker 1: wanted to deal with their international finance. And now they
Speaker 1: created a bank under the under the disguise of just
Speaker 1: helping these war reparations. They created a bank UM that
Speaker 1: had complete legal privileges and nobody could touch them. And
Speaker 1: now they had their international bank. So that's kind of
Speaker 1: why it was created. Was created by central bankers. Now, UM.
Speaker 1: I think it was Murray Rothbart wrote The Mystery of
Speaker 1: Central Banks, and he talked about how the first central
Speaker 1: bank was the Bank of England and the late sixt hundreds,
Speaker 1: and they basically went, I think England was fighting France
Speaker 1: and they wanted money from these rich people. And rich
Speaker 1: people said, hey, if you let us start our own bank,
Speaker 1: we'll give you as much money as you want. But
Speaker 1: we have to start our own bank. And we had
Speaker 1: we're going to create our own currency, and you say
Speaker 1: that our currency is legal, and we'll give you as
Speaker 1: much as we want. And so they were basically creating
Speaker 1: money out of thin air, UM, and I guess the
Speaker 1: central banks have been doing it ever since. And so
Speaker 1: if we if we take that story forward, you're saying
Speaker 1: it's some of these same people that came forward, UM,
Speaker 1: and it's they operate above governments to the point of
Speaker 1: this like org chart that we kind of both kind
Speaker 1: of agreed on. UM, and you're saying that they can
Speaker 1: still kind of create thrown money out of thin air
Speaker 1: by issuing these SDRs, which are based off of a
Speaker 1: basket of other currencies. Yeah, that's right. So yes, Uh,
Speaker 1: special drawing right as they're known. Um, they used to
Speaker 1: be when they started, they were kind of pegged to
Speaker 1: one dollar based on the gold but once Nixon took
Speaker 1: us off the gold standard. Um, they basically change every
Speaker 1: five years in terms of what currencies are in there,
Speaker 1: and it's just a basket of currencies now. UM. On
Speaker 1: an earlier segment, I played a clip actually of the
Speaker 1: head of the b i S, which is Augustin Carston's
Speaker 1: and he was talking about you've probably seen it before. Um.
Speaker 1: He was talking about how cash we don't know who's
Speaker 1: exchanging a hundred dollar bill, but with CBDCs, we can
Speaker 1: know exactly who's doing it and we can have complete
Speaker 1: control over it. UM. Tell us about some of their
Speaker 1: big plans they have for us maybe with the CBDCs
Speaker 1: and control in the financial system more. Yeah. So, I
Speaker 1: mean this is why it's just important to understand what
Speaker 1: the business function is today, and it's really kind of
Speaker 1: creating the policy ideas in this they have an innovation
Speaker 1: hub and they have these events where central bankers can
Speaker 1: get together and discuss, you know, what to do in
Speaker 1: the future about the financial system. And over the last
Speaker 1: sense about eighteen they've written um a dozen working papers
Speaker 1: on central bank digital currencies. That this is the thing
Speaker 1: they're focused on, and they're really excited about it. And essentially,
Speaker 1: if if you have a central bank digital currency, that
Speaker 1: would give them the power UM to basically directly target
Speaker 1: their monetary policy based on information of an individual. UM.
Speaker 1: It would allow them to do things like negative interest
Speaker 1: rates UM, and it would give them complete control over
Speaker 1: who has access to the financial system and as well
Speaker 1: as a complete surveillance of all the flows of international finance.
Speaker 1: And so they're they're they're loving this. They're just looking
Speaker 1: their chops and and just in their loving the power
Speaker 1: that could they could get from this. But you know,
Speaker 1: to give them a little bit of credit, you know,
Speaker 1: I think they have some good intentions. It's like, you know,
Speaker 1: the road to hell is paid with good intentions. And
Speaker 1: they're thinking about all the benefits that CBDCs could bring, like, oh,
Speaker 1: we could be more efficient, UM, we could finally give
Speaker 1: some cheap cross border payments to people, because even though
Speaker 1: we've had all this technological progress over the last decade
Speaker 1: or two, you know, sending money is still really expensive
Speaker 1: for people, and they've been trying to figure out how
Speaker 1: to do this, and so they're looking at the CBDC
Speaker 1: and just seeing all these positives, but they're not focused
Speaker 1: on all these like infringements of privacy and uh, the
Speaker 1: ability for them to basically weaponize this against people. They're
Speaker 1: not really considering the downfalls of a CBDC, or maybe
Speaker 1: they are, or maybe they are. They just think that
Speaker 1: the benefits that way the ca us Yeah, there's a
Speaker 1: there's a quote from Henry Kissinger from seventy four. He said,
Speaker 1: who controls the food supply controls the people. Um, who
Speaker 1: controls the energy can control whole continent. So of course
Speaker 1: we see this E S G kind of narrative going
Speaker 1: over the whole world. So we control the energy through
Speaker 1: s G, and then the last piece, who controls money,
Speaker 1: can control the whole world. So I guess that's kind
Speaker 1: of kind of what he was talking about when they
Speaker 1: said that. Um, but um, back to this, Uh, let's
Speaker 1: talk about that cross border piece. So um, that's one
Speaker 1: of the things they want to create, this more fair,
Speaker 1: equitable system for everybody. Um. And I was actually talking
Speaker 1: to an analyst, Jason burak Um. He's not a big
Speaker 1: crypto guy, and he said that, he said that it's
Speaker 1: gonna you know, the government doesn't doesn't have a way
Speaker 1: to facilitate chillions of dollars of cross border payments. I said,
Speaker 1: any cryptocurrency can do that today. I mean bitcoin obviously,
Speaker 1: but any crypto really could. It's the policies that are
Speaker 1: in place that present the problems trying to go inside
Speaker 1: of different countries and banks. Um. So do you think
Speaker 1: I don't know if you've seen anything specifically about cross
Speaker 1: border payments from the bi s, Like, would they just
Speaker 1: usurp all the nation's laws and that's how they make
Speaker 1: it easy? Yeah, I mean that's actually what they said.
Speaker 1: They actually talked about having a what they call them
Speaker 1: multi C B d C, which would be it would
Speaker 1: be one giant digital I D system that everyone would
Speaker 1: go into, so definitely an infringement of privacy there. Um.
Speaker 1: And then everyone would be on this digital I D
Speaker 1: system in the single C B d C for the
Speaker 1: entire world. And so they're thinking, oh, this is gonna
Speaker 1: be so efficient, right, it's on one system. But then
Speaker 1: they say something very vague like there will be a
Speaker 1: single rule book quote unquote, but they don't say how
Speaker 1: that rule book would be made, who will write it,
Speaker 1: who will enforce it. Um. It would probably be a
Speaker 1: group of unelected central bankers doing this stuff behind closed
Speaker 1: door in there in Switzerland at their headquarters, um, because
Speaker 1: that's usually how these things go. But yeah, they're they
Speaker 1: there's a whole working paper on it. It's called a
Speaker 1: multi cbd C, a multi CBDC which means multiple countries
Speaker 1: all using the same one. Yeah. So the idea is
Speaker 1: they thought, because there's about essential banks are already uh
Speaker 1: you know, testing and experimenting with their own cbdc s.
Speaker 1: But what's the point if they're all siloed by themselves
Speaker 1: with their own systems. So they're I think when they
Speaker 1: say multi CBDC, it's almost like they're planning on hooking
Speaker 1: up every CB CBDC of a country into this one
Speaker 1: giant umbrella system and they think that's a good idea. Yeah,
Speaker 1: that's interesting. Um. I've often thought about the way this
Speaker 1: kind of works its way out, going from the commercial
Speaker 1: banks to the nation's central banks to the I M F,
Speaker 1: B I S, etcetera. I want to talk about that,
Speaker 1: and then I want to talk about more about this
Speaker 1: global digital I D system because that's another big thing
Speaker 1: as well. Um. You listen to the Markma Show. I'm
Speaker 1: in the studio with Sam Callahan. We're talking about UM Bitcoin.
Speaker 1: We're talking about the decentralized revolution. We're talking to about
Speaker 1: the B I S, which you may know nothing about.
Speaker 1: It's the central bank about central banks, and you may
Speaker 1: not know about them, but they know about you or
Speaker 1: they want to know more about you. So we're gonna
Speaker 1: talk more about that, the types of control they may
Speaker 1: want to have and what they can do with it. UM,
Speaker 1: so much more to get into. Don't go away. I
Speaker 1: want to be right back. Everyone. Welcome back. You're listening
Speaker 1: to the Mark Ma Show and we're talking about the
Speaker 1: intersection of politics, finance, and technology. We're talking about the
Speaker 1: decentralized revolution, which of course is bitcoin changing the world
Speaker 1: as we speak. I'm in the studio with Sam Callahan.
Speaker 1: He's a bitcoin analyst with Swan Bitcoin and you can
Speaker 1: find him on Twitter at Sam Callous c A L
Speaker 1: L A. H Um, Sam, do they not have the
Speaker 1: rest of the letters for your last name or like
Speaker 1: what happened there? Yeah, well dude, so apparently there's this
Speaker 1: like British pop star named Sam Callaghan's he was not
Speaker 1: like the American idol of the UK. So that's what
Speaker 1: I have to fight with. Got it? Got it? So
Speaker 1: instead of putting a space or something in there, you
Speaker 1: just dropped a couple of letters off the last They're
Speaker 1: all taken, dang it. Yeah. Um, on Twitter, somebody has
Speaker 1: Mark Moss but they've never like used it. They don't
Speaker 1: even post or anything, and I've like tried to reach
Speaker 1: out to them. Didn't work. So I just had to
Speaker 1: put a number one in front of it, which, by
Speaker 1: the way, if you're not following me on Twitter, it's
Speaker 1: number one Mark Moss you should. Um. But anyway, so
Speaker 1: back to we were talking about this this b I
Speaker 1: s um this bs uh uh. But they've also been
Speaker 1: advocating for this global digital identity system. Um, what what
Speaker 1: have they said about that? So they're in like the
Speaker 1: design phase right now. Right they're still figuring this out.
Speaker 1: It's still many years out before anything happens here. Basically
Speaker 1: they're trying to figure out, you know, how is this
Speaker 1: gonna work while trying to maintain privacy, and I think
Speaker 1: that's more just like word speak, because basically there's two
Speaker 1: ways they can do it. They can have an account
Speaker 1: based CBDC, where somebody has an account tied to their
Speaker 1: digital identity um so a digital I D system and
Speaker 1: they have a direct account with the Central Bank. The
Speaker 1: other way they could do it is they could keep
Speaker 1: users anonymous and have a token based CBDC, which would
Speaker 1: kind of mimic the private stable coins that we see today.
Speaker 1: So there's some kind of privacy maintained there. And they
Speaker 1: go back and forth about the pros and cons, and
Speaker 1: it always comes back to they say that they won't
Speaker 1: be able to stop elicit activity and money laundering, so
Speaker 1: of course we can't have privacy, and so they say, okay,
Speaker 1: well we have to do these digital ID system with
Speaker 1: the account based retail CBDC, which grinds my gears because
Speaker 1: if you know anything about a m l K y C,
Speaker 1: they can't stop elicit activity or money laundering at all.
Speaker 1: They failed at that for decades, and now they justify
Speaker 1: surveillance and overreach in the name of stopping a listit
Speaker 1: activity that they haven't been able to do with their
Speaker 1: policies for decades, and so it really bugs me when
Speaker 1: I see that in these papers all the time. It's
Speaker 1: why they justify the overreach that they do. Sure. Um,
Speaker 1: And I was talking about in an earlier segment. I
Speaker 1: was talking about the k y C A m L
Speaker 1: and how there's about ninety trillion of of global GDP,
Speaker 1: and of that global GDP ninety trillion, they estimate about
Speaker 1: three per cent of that is criminal. And again criminals
Speaker 1: probably a who who you know, who decides what's criminal.
Speaker 1: So maybe that's um, you know, some of it's some
Speaker 1: really bad stuff like you know, child trafficking, but some
Speaker 1: of it's probably not. So whatever, call it three percent.
Speaker 1: So um, ninety trillion three criminal they said of that
Speaker 1: k y C captures less than zero point one percent. Yeah,
Speaker 1: that's a It might be from a study from a
Speaker 1: guy named Dr Ron Paul. He's another cool doctor Ron Paul. Yeah.
Speaker 1: I caught I caught him, and I started diving down
Speaker 1: his rabbit hole. Yeah yeah, because I was diving down
Speaker 1: the rabbit ale too, And his name just kept popping
Speaker 1: up on all the research and he did his PhD.
Speaker 1: And basically the ineffectiveness of those policies, and so he did,
Speaker 1: he did all the hard work, so all those like
Speaker 1: numbers come from his work. Yeah, man, it's it's UM.
Speaker 1: He has a he has a saying it's uh, it's
Speaker 1: zero effectiveness, infinite cost. That's what those policies are. Now
Speaker 1: where there's they don't do what they're supposed to do,
Speaker 1: and all they do is create extra costs on banks
Speaker 1: who are fine for not complying with their ineffective policies,
Speaker 1: and then those those banks have to pass on those
Speaker 1: costs to consumers. And so he's made his life's work
Speaker 1: to try to fight raise awareness about that stuff. And
Speaker 1: I think everyone should follow that guy. Yeah. And then
Speaker 1: I saw it was like UM business compliances estimated to
Speaker 1: trillion dollars a year percent of global economy. So UM
Speaker 1: to percent of global economy. Some institutions spend up to
Speaker 1: five hundred million annually. The top ten percent of businesses
Speaker 1: spend at least a hundred million. That's so like UM,
Speaker 1: I think of things like t s A, what a
Speaker 1: freaking nightmare going through the airport. UM, in California, we
Speaker 1: have like border patrols were like checkpoints we have to
Speaker 1: go through and just randomly on a day, all of
Speaker 1: a sudden, you have to wait in line for an hour,
Speaker 1: so they can just like wave traffic through. So like
Speaker 1: they're going to inconvenience, you know whatever, hundreds of thousands
Speaker 1: of people to maybe potentially catch like one ill legal
Speaker 1: alien where they can go get like hundreds you know,
Speaker 1: just at home depot um but or t s A.
Speaker 1: But in this example here, it's like, so they're going
Speaker 1: to inc not not just inconvenience us um the nine percent,
Speaker 1: not just inconvenience, but put us in harm because now
Speaker 1: we've had to give up all our identity and these
Speaker 1: honey pots that could hacked all the time. So nine
Speaker 1: and nine point nine percent of people are inconvenience and
Speaker 1: put at risk to potentially maybe catch the zero point
Speaker 1: one percent of people. I mean, it's insanity. It's insane.
Speaker 1: And then and so and then these uh you know,
Speaker 1: the Bank of International Settlements. That's how they justify you know,
Speaker 1: having a CBD system that doesn't have you know, anonymity
Speaker 1: in it is they say like, well, we need to
Speaker 1: do this stuff when they can't do it right now
Speaker 1: without the you know, control of a CBDC and the
Speaker 1: surveillance of the CBDC, So you'd basically be infringing on
Speaker 1: the rights and the privacy of all these law bodying
Speaker 1: citizens to catch a very very tiny sliver of you know,
Speaker 1: terrorists or criminals. So, um, it's it's really it's it's
Speaker 1: kind of shocking, to be honest with you. But at
Speaker 1: the same time, I wouldn't really expect less from these
Speaker 1: large organizations like this. Yeah, so if we have like this, uh,
Speaker 1: if we have like this, almost the banking is kind
Speaker 1: of like this decentralized stack. So you have you know,
Speaker 1: you have at the bottom you have like a local
Speaker 1: bank farmers and merchant bank, credit union, and then you
Speaker 1: have the commercial banks, and then you have the central
Speaker 1: banks um. And then you know, since the central banks
Speaker 1: give reserves to the commercial banks, and then the commercial
Speaker 1: banks are the ones extending credit. So my local bank,
Speaker 1: for example, I'm like, hey, I'm i'm I want to
Speaker 1: start an avocado stand and he's like, well, people in
Speaker 1: California love avocado is great, Um, but they know what
Speaker 1: I want here. And so there's like this decentralized kind
Speaker 1: of decision making um versus the FED. Right. So but
Speaker 1: then you know, we have the commercial banks and we
Speaker 1: have the FED, but then above that then the I
Speaker 1: M F and B I S And it's almost like
Speaker 1: they just want to compress that whole stack down, so
Speaker 1: we could have an account directly with the B I S,
Speaker 1: which you know, on one hand, I guess it makes
Speaker 1: the cross border payments better, um, But then the trade
Speaker 1: off is then the amount of privacy we give up.
Speaker 1: But then, uh, I mean, are each nationally going to
Speaker 1: lay down their sovereignty for that? Yeah, And you're exactly right.
Speaker 1: And also the commercial banks. It basically takes all the
Speaker 1: commercial banks out of the picture, and so a lot
Speaker 1: of the working papers in the Bank of International Settlements,
Speaker 1: their concerns aren't about, you know, protecting the rights of individuals.
Speaker 1: I don't think they really care that much about that,
Speaker 1: But they do care about the restructuring of the entire
Speaker 1: banking industry because this would basically bypass commercial banks because
Speaker 1: right now you have basically, you know, users, it's kind
Speaker 1: of users go directly to commercial banks and do lending,
Speaker 1: like you said, and they handle all the communications with
Speaker 1: the users and the central bankers in the background, and
Speaker 1: they don't want to get into all that if they
Speaker 1: have a direct CBDC, Suddenly they'll have to have an
Speaker 1: entire lending you know, branch in the central bank and
Speaker 1: deal with all the headaches of a m l K
Speaker 1: by C like we said, and day to day customer service.
Speaker 1: And so they don't want to have this system where
Speaker 1: it just like takes the commercial banks out. So they're
Speaker 1: trying to design something like a hybrid where they don't
Speaker 1: have to deal with the headaches of all the things
Speaker 1: commercial banks have to deal with. And so that's kind
Speaker 1: of actually the main hold up right now from the
Speaker 1: Bank of International Settlements you know viewpoint, the main hold
Speaker 1: up is UH is getting more surveillance and more policies
Speaker 1: in not they want that. No, they just don't want
Speaker 1: to change the entire structure of the banking system by
Speaker 1: having a direct account and bypassing the commercial banks and
Speaker 1: basically putting them out of business, like there would be
Speaker 1: no need for them anymore, right and and uh they're
Speaker 1: like best friends, so they don't mess with their commercial
Speaker 1: bank friends, right right, right, And just it's just it's
Speaker 1: a dangerous world. I was at a conference speaking recently
Speaker 1: with Professor Richard Werner, who's ex Central Banks UM, and
Speaker 1: he had some very interesting things to say. I want
Speaker 1: to tell you what he said at his talk. I
Speaker 1: actually agreed with him, and then I didn't agree with him.
Speaker 1: I'm gonna fill you in with that. I'm wanna get back.
Speaker 1: We'll talk about what he said. We'll talk about central
Speaker 1: bank digital currency some more. You're listening to the markmas Show.
Speaker 1: I'm in the studio with Sam Callahan uh talking about
Speaker 1: the coup of the central bankers. The b I s
Speaker 1: something that you maybe haven't heard of or thought about,
Speaker 1: but you should because ignoring it isn't gonna make it
Speaker 1: go away. Um. We're talking about bitcoin, the decentralized revolution. Um,
Speaker 1: like I said, the banking sector and how they may
Speaker 1: try to compress the stack on you and what that means.
Speaker 1: I'll be back with a lot more. Don't go away,
Speaker 1: all right, welcome back. You're listening to the Mark Moa Show.
Speaker 1: We're talking about the decentralized Revolution. We're talking about the
Speaker 1: converging trends of politics, finance, and technology and bitcoin and
Speaker 1: how it's changing the world. I'm in the studio with
Speaker 1: Sam Callahan Uh. He's a bitcoin analyst with Swan Bitcoin,
Speaker 1: and we're talking about this this banking stack. So the stacks,
Speaker 1: starting from my local bank to my commercial bank, to
Speaker 1: my central bank, to the I m F and the
Speaker 1: B I S, which most people have never heard of,
Speaker 1: the Bank of International Settlements but now you are. Um.
Speaker 1: So Sam, right before we went on the break, I
Speaker 1: was talking about how I recently spoke at a conference
Speaker 1: with the Professor Richard Werner, and he's an expert with
Speaker 1: central banks and advisor and so forth. And his talk
Speaker 1: that he gave at the conference was was amazing, and uh,
Speaker 1: the whole thing was centered on how we need to
Speaker 1: decentralize the banks, how this growing trend to centralization is
Speaker 1: a is a massive problem, and and he had all
Speaker 1: these facts and all these charts, and I mean so
Speaker 1: much research showing how much better things were when the
Speaker 1: banks were decentralized and all the risks of what happens
Speaker 1: as the banks continue to get more and more centralized.
Speaker 1: And I was like, Wow, that's great, that's that's that's
Speaker 1: exactly what we think as people think about bitcoin. Um.
Speaker 1: But then I was on a panel with him and
Speaker 1: then the question was like, um, so you know you
Speaker 1: believe in this, like you know this need for banks
Speaker 1: to decentralize, but how exactly would we do that? Like,
Speaker 1: how does that just happen? And he's like, well, we
Speaker 1: just need more people to go open banks, that was
Speaker 1: his answer. And I'm like, well, in order to open
Speaker 1: up a bank, I have to get like a banking
Speaker 1: license from the FED. They don't just give those out
Speaker 1: to anybody. And um, that's the reason why we don't
Speaker 1: have more banks. I mean, what do you, um, what
Speaker 1: do you think about that kind of response? I mean,
Speaker 1: I think that's spot on. If if you know anything
Speaker 1: about like how many banking license gets out after two
Speaker 1: eight I think it's like thirteen or something, and it
Speaker 1: used to be like dozens a year, but we've seen
Speaker 1: concentration of banks and that's kind of how they hold
Speaker 1: off their monopoly of power. They don't let any banks
Speaker 1: be created. So, you know, it's one of those things
Speaker 1: like that classic Milton Freedman quote where it's like a
Speaker 1: sly roundabout way um around the system instead of trying
Speaker 1: to fix a broken system. Jeff Booth talks about that
Speaker 1: a lot, like, I can't fix a system that's fundamentally broken.
Speaker 1: We need to create a parallel system. And I agree
Speaker 1: with that kind of framework. You know, I'm a big
Speaker 1: fan of Richard Warner. I think he's been talking about
Speaker 1: central banks way before everybody else was, and he's he's
Speaker 1: an expert. UM. I recommend reading his book Princes of
Speaker 1: the End, and there's a really good YouTube video um
Speaker 1: as well, like a documentary. UM. But here I'd had
Speaker 1: to disagree with him, well because he uh, the the
Speaker 1: disagreem apart um again we I think we all agree
Speaker 1: with him on the problem. The centralization of breaking the
Speaker 1: thing that we disagree on is the solution to that problem.
Speaker 1: And um, to your point, I mean, it's the system
Speaker 1: is so clogged up, it's so jammed up. It was
Speaker 1: f a Hiak that said that quote. UM, oh yeah,
Speaker 1: there you go. Sorry. UM, never be a sound money
Speaker 1: aga until we take the thing from the hands of
Speaker 1: the government. But it can't be done by force, but
Speaker 1: rather a sly roundabout way. UM. But that's exactly right
Speaker 1: and kind of to your point, like Jeff both talking
Speaker 1: about these these parallel structures. UM. I've studied a lot
Speaker 1: um really how the Soviet Union, the USSR fell, and
Speaker 1: some of the writings of Vaclov Hovel and and mainly him.
Speaker 1: He was put in prison for three years for speaking
Speaker 1: out against the government, and then he became on became
Speaker 1: the president of Czechoslovakia, and he said that the way
Speaker 1: that the U. S. S R. Fell was through these
Speaker 1: parallel systems, and so um people were so regulated by
Speaker 1: the system that they were forced to go live outside
Speaker 1: of it. Um So, like all these people being sanctioned
Speaker 1: and getting kicked out of the financial system, they're going
Speaker 1: to go find another system. And eventually, because so many
Speaker 1: people had left the system that the sanctions didn't really
Speaker 1: matter anymore. And then by the time the Soviet Union fell,
Speaker 1: it didn't really impact that many people because not that
Speaker 1: many people depended on the system anymore. And uh that
Speaker 1: I guess that's what we're kind of seeing, right, there's
Speaker 1: a way we can start getting people out of the
Speaker 1: financial system to build that parallel system and then maybe
Speaker 1: cushion that blow. Yeah, well that sounds very familiar to
Speaker 1: what we're seeing today, isn't it, Like with the Canadian
Speaker 1: truckers and the increase weaponization of the financial system against
Speaker 1: you know, government's own citizens. And I think that's it's
Speaker 1: like the best marketing for bitcoin, right when you have
Speaker 1: this other option that nobody can control. It's parallel working system.
Speaker 1: If if they keep weaponizing it against the citizens, they
Speaker 1: will find the other option that's not going to be
Speaker 1: weaponized against them, and that one's Bitcoin, um being open source,
Speaker 1: permission list, all those good things that we both know. Um.
Speaker 1: I think that's what we're seeing. And I don't know
Speaker 1: how fast that's going to take or how it's all
Speaker 1: going to play out, but I think at this point,
Speaker 1: if they, if the government's continue to do what they're
Speaker 1: doing with the sanctions and the censorship and the seizures,
Speaker 1: then it's only a matter of time before more and
Speaker 1: more people choose a system that doesn't get weaponized against them. Yeah. Yeah,
Speaker 1: I was talking about that earlier where Um, I've talked
Speaker 1: about this quite a bit on YouTube, and I had
Speaker 1: some people say, oh, Mark, you're a shill for Russia.
Speaker 1: You must be a Russian asset, and it's like, you know,
Speaker 1: these are these are complex subjects and I'm certainly not
Speaker 1: for war. I'm certainly not for killing anybody, um, but
Speaker 1: at some point you're gonna find yourself on the opposite side. Um.
Speaker 1: You know, back to the truckers, I mean when people
Speaker 1: donated money, you know, when go when the go funding
Speaker 1: got season and then people donate a bitcoin that was
Speaker 1: legal at the time, and then they wouldn't change the
Speaker 1: laws later, right, and then they found themselves on the
Speaker 1: wrong side of that, and so it can happen very quickly. Um.
Speaker 1: And I think kind of like, um, the Newton's third
Speaker 1: lave of physics, like every force has an equal in
Speaker 1: opposite reaction. So like, the more they're pushing people out,
Speaker 1: the more people will go build another system. The more
Speaker 1: people push back and building a system, the more they're
Speaker 1: gonna squeeze and push more people out. And it's like
Speaker 1: this like uh kind of you know, spiral effect if
Speaker 1: you will. Yeah, I think that's right. I think that's
Speaker 1: how I view it as well. Um, Like I said,
Speaker 1: if they're just gonna keep weaponizing the system against them,
Speaker 1: then more and more people are going to find one
Speaker 1: that embraces them and doesn't discriminate, and then that's that's Bitcoin.
Speaker 1: Now it seems like um if it seems like I mean,
Speaker 1: the BIS is talking about this global digital identity system, um,
Speaker 1: and it seems like, um, this China style social credit
Speaker 1: score system is coming for the rest of the world,
Speaker 1: and it and it really needs this global digital identity
Speaker 1: system and the c B d C to really put
Speaker 1: it all together. Um, it seems like in my opinion,
Speaker 1: I've been talking about it's like a race, like can
Speaker 1: they get that system um set up and installed before
Speaker 1: enough people wake up and just leave the system and
Speaker 1: go do something on their own. Do you see that race?
Speaker 1: And if so, what's your take on that or your
Speaker 1: prediction on that. No, I do see a race, and
Speaker 1: I and I think the races with like bitcoin adoption.
Speaker 1: I think, Um, I think if bitcoin becomes more and
Speaker 1: more popular, you know what I'm worried about is that
Speaker 1: the BIZ or essential banks will rush their own product
Speaker 1: out because bitcoin is becoming so popular and they're behind
Speaker 1: the curve with this stuff, and they're the government. They're
Speaker 1: not exactly great at technology and so to say the least.
Speaker 1: So I think this is far away. Like I said,
Speaker 1: I think there was a recent report that showed they're
Speaker 1: hoping for a fed coin by like, but now even
Speaker 1: I think that report was like two months ago, and
Speaker 1: now we have an executive order saying like, no, we
Speaker 1: need this faster. So we're already seeing, Yeah, we're seeing
Speaker 1: this race increase very fast. Like it it's all accelerating.
Speaker 1: And I think what we're like personally. One of the
Speaker 1: predictions that I have is is they're actually going to
Speaker 1: outsource it to the private sector and they're gonna have
Speaker 1: one of these highly regulated stable coin issuers you know,
Speaker 1: come in house and help build um, you know, fed
Speaker 1: coin or whatever you want to call it. And then
Speaker 1: it's interesting because it's it's like, this stuff doesn't work
Speaker 1: unless everybody's on a digital ID system, and so it's
Speaker 1: kind of like the prerequisite. Well, I mean it doesn't.
Speaker 1: I mean, I mean, the the stable coins work without
Speaker 1: that right if they if they don't want to give
Speaker 1: us the privacy, then it doesn't work, I guess. And
Speaker 1: I don't think they want to give us the pair.
Speaker 1: I don't think they want to give us the privacy.
Speaker 1: And so that's kind of how I see it playing out.
Speaker 1: I think it's all going to accelerate, um and then
Speaker 1: they're probably gonna turn to to a private stable coin
Speaker 1: issue or to kind of help weed that that project. Yeah,
Speaker 1: that makes sense. I mean they pop up all the time.
Speaker 1: As a matter of fact, they could just take one
Speaker 1: over by one or whatever. UM. I was talking earlier.
Speaker 1: There's an article I was reading about the history of
Speaker 1: the i r S failure to update their own database.
Speaker 1: For forty years, they've been unable to update their own
Speaker 1: databases and it's caused you know, hundreds of thousands of
Speaker 1: mistakes every single year. UM. And then I was talking
Speaker 1: about the Obamacare when they launched that website. UM, it
Speaker 1: was a massive problem people just trying to shop for
Speaker 1: insurance and they spent over two billion dollars and couldn't
Speaker 1: get that launched. So UM, they definitely don't have a
Speaker 1: good history of technology, so we have that on our side. UM.
Speaker 1: You're listening to the Markma Show. We're talking about bitcoin
Speaker 1: and the decentralized Revolution. I've been in the studio with
Speaker 1: Sam Callaghan. He's a bitcoin analyst with Swan Bitcoin a
Speaker 1: good place to buy some bitcoin if you're looking for some. Um,
Speaker 1: we're talking about the b I s UM. It's interesting anyway,
Speaker 1: That's what I got forre you today. Thanks for listening.