Speaker 1: They literally can't let a recession happen, And I'm about
Speaker 1: to show you the mathematical proof that changes everything you
Speaker 1: think you know about what's coming next. You see, everybody's
Speaker 1: been waiting for the crash for two years now, defensively positioned,
Speaker 1: sitting in cash, missing out. But what if I told
Speaker 1: you that the FED is trapped in a thirty seven
Speaker 1: trillion dollar corner where allowing a recession would collapse the
Speaker 1: entire system. Now, look, I've been analyzing macrocycles for two decades.
Speaker 1: I'm a partner at a leading bitcoin venture fund. I
Speaker 1: advise multiple public companies, and what I'm seeing in the
Speaker 1: data is the biggest wealth transfer setup I've ever witnessed.
Speaker 1: And by the end of this video, you'll understand exactly
Speaker 1: why they must print forever and how to position yourself.
Speaker 2: So let's go all right, What.
Speaker 1: A time to be alive. We are living through a
Speaker 1: massive evolution right now. It's something what I talk a
Speaker 1: lot about because I talk about technology a lot, and
Speaker 1: it's something called creative destruction, where a new way, a
Speaker 1: new creation, creativity kills the old way.
Speaker 2: Now what are we talking about. We're talking about the.
Speaker 1: Entire global financial system, the bedrock of the system being
Speaker 1: replaced and the new system that's being built on top
Speaker 1: of it.
Speaker 2: And we're talking about, first of all.
Speaker 1: The death of the existing system. Now, the death of
Speaker 1: the existing system is already happening. It's become decrepit, it's
Speaker 1: become old. Nietzsche said that which is falling, shall ye
Speaker 1: also push? And so the system is already fallen off
Speaker 1: of an edge, and there's a new system being built
Speaker 1: up on top of it.
Speaker 2: Now you probably are already aware of this. I talk
Speaker 2: about it on videos all the time.
Speaker 1: In the United States alone, In Japan and China and
Speaker 1: the ECB, they're all the same.
Speaker 2: But in the US alone, the debt continues to go up.
Speaker 1: At an astronomical pace. As a matter of fact, look
Speaker 1: at these trend lines of the debt growing faster, faster, faster, faster.
Speaker 1: Next level is going to be going straight up. We're
Speaker 1: talking thirty seven trillion dollars of debt at a record
Speaker 1: rate of adding a trillion dollars of debt every one
Speaker 1: hundred days. Now, in the two thousands, it was every
Speaker 1: couple of years to get a trillion dollars of debt.
Speaker 1: In twenty ten's it was one year to get a
Speaker 1: trillion dollars of debt, and today, as I said, it's
Speaker 1: about a quarter. About every quarter, a new trillion dollars
Speaker 1: of debt. Now, the reason why I want to bring
Speaker 1: that up real quickly is because the bedrock of the
Speaker 1: entire global financial system is US treasuries. But the problem
Speaker 1: is that if I'm going to buy a US treasury,
Speaker 1: that's debt, right, I'm going to give the government money
Speaker 1: and they're going to pay me back three, four or
Speaker 1: five percent interest, and then in two, five, ten, twenty
Speaker 1: thirty years I get my capital back. But do I
Speaker 1: want to loan somebody money who's insolvent, who has no money?
Speaker 1: Do I want to loan somebody money for ten twenty
Speaker 1: thirty years that they're going to pay me back, but
Speaker 1: when they pay me back in thirty years, it's worth
Speaker 1: way less than what I gave to him in the
Speaker 1: first place.
Speaker 2: And that's exactly what we have going on.
Speaker 1: So as that government debt continues to explode, as they
Speaker 1: continue to increase it by a trillion dollars every hundred days,
Speaker 1: those holding the debt are losing money at a rapid rate.
Speaker 1: Here we have the TLT, which is basically an index
Speaker 1: that tracks the long term US treasuries, and what we
Speaker 1: can see over the last five years that it's lost
Speaker 1: forty seven percent.
Speaker 2: Of its value.
Speaker 1: So if you were a government or somebody that was
Speaker 1: parking money, like most sixty to forty portfolios have money
Speaker 1: in bonds, they've lost.
Speaker 2: Fifty percent, almost fifty percent of their money in five years.
Speaker 1: The bedrock of the global financial system is losing value
Speaker 1: at a rapid rate fifty percent in five years. That
Speaker 1: is the game that's losing, that's the game that's being destroyed.
Speaker 1: But there's a new game in town. What am I
Speaker 1: talking about? It's sort of like discovering fire. It's like
Speaker 1: a zero to one moment. And what we're seeing is
Speaker 1: that a new type of company taking a new type
Speaker 1: of asset and making a refinery model out of it.
Speaker 1: What am I mean by a refinery model. We're taking
Speaker 1: a raw asset and we're creating new things from it.
Speaker 2: Right.
Speaker 1: We're taking one asset and we're turning that asset into
Speaker 1: now multiple products.
Speaker 2: Right.
Speaker 1: It's sort of like financial alchemy, except where it's not alchemy.
Speaker 2: It's more of like a refinery. What am I talking about?
Speaker 1: We're talking about new companies sort of like what micro
Speaker 1: strategies doing, I shouldn't say, sort of like they're the
Speaker 1: ones that are pioneering this. Now there's dozens of companies
Speaker 1: that are doing the same things that they are. And
Speaker 1: what they've done is they've taken a new asset, a
Speaker 1: new commodity, something new, a new piece of technology like bitcoin,
Speaker 1: and use that as a base asset to now like
Speaker 1: a refinery, create new products on top of it that
Speaker 1: fit inside the traditional financial world. Now, specifically, they've created
Speaker 1: four new outputs. They've taken one input of bitcoin and
Speaker 1: created four new products, four new outputs off of that.
Speaker 1: We're talking about convertible debt yielding instruments, bitcoin linked equities.
Speaker 1: We're talking about new ways to get income streams off
Speaker 1: of bitcoin and basically amplify the amount of bitcoin that
Speaker 1: you could buy. What are we talking about here, Let
Speaker 1: me show you how this is working.
Speaker 2: Again.
Speaker 1: If you don't understand this, you're gonna miss one of
Speaker 1: the biggest shifts to the global financial system that's maybe
Speaker 1: we'll ever see. Okay, here's what we're talking about. They've
Speaker 1: taken something like bitcoin here, that's the input. It's like
Speaker 1: no different than a refinery would take in oil and
Speaker 1: then they would spit out different types of fuels. So
Speaker 1: they take in bitcoin and then they output it as
Speaker 1: different products that fit into different unique use cases for
Speaker 1: different people. Again, like oil, we can take oil and
Speaker 1: turn it into all different types of products. So we
Speaker 1: have at the top, we have the micro Strategy stock,
Speaker 1: all right, So that's just if I want common stock,
Speaker 1: I want upside volatility on that stock.
Speaker 2: But what if I don't.
Speaker 1: What if I want what if I'm a I'm a
Speaker 1: debt buyer, I'm a bond buyer, I want income, Well,
Speaker 1: we have an income product here.
Speaker 2: Well, what if I want like really.
Speaker 1: High yield income, like I'm a junk bond buyer, Well
Speaker 1: we have that product down here. What if I want
Speaker 1: more secure income that's like a US treasury where it's
Speaker 1: much more secure senior preferred. Okay, then I might want
Speaker 1: to hear what if I want the debt but I
Speaker 1: want a little bit more upside. You see, there's different
Speaker 1: flavors for all these different buyers, and they're all right here.
Speaker 1: Let me kind of give you a different breakdown of
Speaker 1: what this looks like. So what micro Strategy has done
Speaker 1: is they've taken Bitcoin the input, and they've output four
Speaker 1: new products as of right now, and each one of
Speaker 1: these products is a little bit different. So the common
Speaker 1: stock micro strategy is leveraged bitcoin exposure, so they get
Speaker 1: that potential upside, but there's no income from that, and
Speaker 1: there's also downside.
Speaker 2: That comes with that.
Speaker 1: We have Strike, which is paying an eight percent quarterly
Speaker 1: fixed dividend, but it can convert over into the stock,
Speaker 1: so I get the upside potential, So it's sort of
Speaker 1: like a dividend stock. I get the eight percent dividend
Speaker 1: and I get upside if the stock goes up.
Speaker 2: Then we have another one here called Stride STRD.
Speaker 1: This pays a ten percent quarterly fixed, non cumulative dividend,
Speaker 1: so I get a higher income, but it's higher up
Speaker 1: in the stack, so what's pretty secured. And then down
Speaker 1: here we have this new one, Stretch. I just did
Speaker 1: a video recently on this, I called it the iPhone Moment,
Speaker 1: where we can link it up here or in the
Speaker 1: show notes down below, And basically stretches sort of like
Speaker 1: a stable coin where I don't have upside or downside volatility.
Speaker 2: It always sits right around what I want, sort of
Speaker 2: like a money market fund.
Speaker 1: But it pays a nice healthy dividend depending on where
Speaker 1: it's at, somewhere in the nine percent range.
Speaker 2: You see, this is what we're talking about. Now.
Speaker 1: How has this been working out so well? Well, if
Speaker 1: you haven't been paying attention, maybe you've missed it. But
Speaker 1: in the last five years, micro Strategy, the company that's
Speaker 1: doing this refinery model, has been the best performing asset.
Speaker 2: Right.
Speaker 1: Bonds are down four percent over the last five years.
Speaker 1: Real estate it's up six percent, Goal's up ten percent,
Speaker 1: SMP's up fourteen percent, the mags seven collectively of twenty
Speaker 1: seven percent. Bitcoin is up fifty eight percent per year.
Speaker 1: These are per year returns. Sorry I didn't specify that.
Speaker 1: And micros is up one hundred percent in the last
Speaker 1: five years. What about in the last one year, because
Speaker 1: you know, Mark, maybe you're cherry picking data. Well, in
Speaker 1: the last one year, we can see the outperformance of
Speaker 1: micro Strategy as well. And so that this is the
Speaker 1: financial refinery model that we're seeing. Like I said, dozens
Speaker 1: of people are copying this now, but this is way
Speaker 1: bigger than one company like MicroStrategy. What we're witnessing is
Speaker 1: creative destructure. What we're witnessing is the creation of fire,
Speaker 1: the zero to one moment that now everybody will start
Speaker 1: to copy, start to duplicate what am I talking about. Well, currently,
Speaker 1: companies like the mag seven maybe your business, you should
Speaker 1: have some savings, right, you have a treasury, but this
Speaker 1: is making traditional treasuries obsolete. So again, a company like
Speaker 1: your company, my business should have some savings. And some
Speaker 1: of the biggest companies in the world have enormous savings.
Speaker 1: As a matter of fact, Berkshire Hathaway, Warren Buffett's company
Speaker 1: is sitting on over three hundred and forty eight billion
Speaker 1: dollars three hundred forty eight billion dollars of cash and
Speaker 1: cash equivalents, treasuries things like that. Amazon ninety eight billion,
Speaker 1: Google ninety five billion, Microsoft ninety five billion, sitting on
Speaker 1: enormous hordes of dollars.
Speaker 2: And these dollars are losing money.
Speaker 1: Unlike micro strategy, their asset base is making money.
Speaker 2: So what we're.
Speaker 1: Seeing is a shift from using my treasury as just
Speaker 1: a way to store money that's losing value, to instead
Speaker 1: turn my treasury in a way to turbocharge my returns.
Speaker 1: That's what we're starting to see, and this is going
Speaker 1: to be the big shift that we're about to see
Speaker 1: where we start to see treasuries go from reserves to
Speaker 1: refineries instead of just holding losing value. How do we
Speaker 1: turn that into a refinery that allows different people to
Speaker 1: get them at different products. Now, how big is a
Speaker 1: market like this, Well, we can see that right now.
Speaker 1: The universe for these would be US treasuries. Right, so
Speaker 1: people buy US treasuries to store wealth and get a return.
Speaker 1: We have about twenty eight trillion dollars sitting there. We
Speaker 1: have mortgage backed security, so people buy into those commercial
Speaker 1: real estate mortgage backed securities or residential there's about almost
Speaker 1: ten trillion sitting there. We have bonds about five trillions
Speaker 1: in their junk bonds higher yielding a little bit more risk,
Speaker 1: two point six jillions in there. Dividend paying stocks, forty
Speaker 1: eight trillion dollars in dividend pain stocks. Again, people are
Speaker 1: buying the stock for a dividend, hoping for some potential upside.
Speaker 1: So we're talking about hundreds of trillions of dollars sitting
Speaker 1: here in demand for these types of products. And over
Speaker 1: here we have strike, strife, stride, and stretch, the four
Speaker 1: products that micro strategy has created.
Speaker 2: The refinery that are just tiny little blips. Right now,
Speaker 2: we're talking billions of dollars that are out competing.
Speaker 1: They all pay higher yield at a higher collateral ratio,
Speaker 1: so they're safer and they pay out more, which means
Speaker 1: they're out competing, which means the new creation. It's the
Speaker 1: digital camera to Kodaks film camera. This is what's going
Speaker 1: on right now. And again Strategy is pioneering this. But
Speaker 1: all of those companies I showed you have enormous treasuries
Speaker 1: that they can start to turn into refineries instead of
Speaker 1: just treasures losing money. Again, why because right now they're
Speaker 1: parking them into the US treasuries which have lost fifty
Speaker 1: percent in five years.
Speaker 2: And again, why is that real? Quick?
Speaker 1: It's because the amount of money being added to the
Speaker 1: system is about ten percent per year, which means that
Speaker 1: you need to be making at least ten percent a
Speaker 1: year if you hope to keep up on it.
Speaker 2: And again, where are you going to put that money
Speaker 2: to do that?
Speaker 1: So if I'm one of these companies, if I'm a
Speaker 1: business owner and I have money in my treasury.
Speaker 2: Where do I put it?
Speaker 1: Well, I know that I need to make at least
Speaker 1: ten percent a year. Here's a list of all the
Speaker 1: assets that we have from twenty fifteen to twenty twenty four,
Speaker 1: so for the last ten years, this is the performance
Speaker 1: of all the major asset classes. Now, what we can
Speaker 1: see is that bitcoin has done an average an annual
Speaker 1: compound and annual growth rate of eighty percent. The Nasdaq
Speaker 1: has done seventeen percent, so that's well above the ten
Speaker 1: percent that we're losing.
Speaker 2: Pretty good.
Speaker 1: The S and P five hundred has done thirteen point
Speaker 1: nine call it fourteen percent, so a little bit better
Speaker 1: than the ten percent that we're losing. But everything else
Speaker 1: we've lost money in gold nine percent, rates nine point
Speaker 1: four percent. We can keep going down to commodities zero
Speaker 1: point six percent, bonds two point three percent, high yield
Speaker 1: credit six point four percent, but all.
Speaker 2: Losing money to the ten percent.
Speaker 1: So all of these companies from Berkshire Hathaway to Apple
Speaker 1: to Google to Test Letter, sitting on one hundreds of
Speaker 1: billions of dollars of cash sin in assets like this
Speaker 1: that are all losing money to what the monetary supply
Speaker 1: is doing.
Speaker 2: They're all going to be looking for a new model.
Speaker 1: That's how big this is all right, Now, this all
Speaker 1: sits within the quantum wealth window.
Speaker 2: That I talk about regularly.
Speaker 1: There's a fifty year site that we see technology develop
Speaker 1: and it's happened. Now we're on our six times this
Speaker 1: has happened in the last three hundred years. The reason
Speaker 1: why I like to bring that up over and over
Speaker 1: is because the more times a cycle repeats, the more
Speaker 1: dependable the cycle is. And we know that there's four
Speaker 1: distinct phases that each one of these happen within the
Speaker 1: first phase is where the new technology is first created.
Speaker 2: We call that the eruption phase.
Speaker 1: The second phase, which we're in right now by this
Speaker 1: green arrow, is the frenzy phase. Now, it's important to
Speaker 1: understand that each one of these gives us a different blueprint,
Speaker 1: a different model to be invested through. And in the
Speaker 1: eruption phase is the retail phase. This is when bitcoin
Speaker 1: came onto the scene. It's when we had the rise
Speaker 1: of cryptocurrencies and retail investors came into the space. But
Speaker 1: in the frenzy phase, this is where the institutional investors
Speaker 1: come in. This is where the sovereign governments come in,
Speaker 1: and that's exactly what we're seeing right here. And when
Speaker 1: we overlay what's called an S curve on top of that,
Speaker 1: which is how we measure new technology adoption. We can
Speaker 1: see that in this part of the cycle is where
Speaker 1: we have the fastest growth, which means not only the
Speaker 1: fastest adoption, but also the most amount of money coming in.
Speaker 1: And so for a lot of people who think this
Speaker 1: opportunity is a fad or they think that it's too late,
Speaker 1: you can see that when you look at it through
Speaker 1: that lens, it is just getting started. Okay, so what
Speaker 1: are you gonna do with all this? It's great now
Speaker 1: as you've got it right, some information, some knowledge, what
Speaker 1: are you going to do with it?
Speaker 2: Well, a couple of things.
Speaker 1: Number One, you can buy bitcoin directly. That would be
Speaker 1: the foundation if I was going to build a pyramid.
Speaker 1: I don't want to buy some bitcoin directly, because as
Speaker 1: these companies start using their treasury more like a refinery
Speaker 1: and start changing the base layer of the financial system, it's.
Speaker 2: Going to push bitcoin up.
Speaker 1: Number Two, you can buy equity in some of these
Speaker 1: bitcoin treasury companies, like micro Strategy, like Metaplanet, like dozens
Speaker 1: of others that have come out since then that are
Speaker 1: going up five hundred percent, some are going up five
Speaker 1: thousand percent in months.
Speaker 2: They're going really fastly.
Speaker 1: And then Three, you can use the same strategy for
Speaker 1: your own business. Again, you have, hopefully you have a business,
Speaker 1: maybe it has some money. What do you do with
Speaker 1: the treasury? Where does it sit? Is it sitting in
Speaker 1: cash losing money? Are you putting to do as treasuries?
Speaker 1: Or do you want to use your own treasury more.
Speaker 2: Like a refinery model like these are doing. Now.
Speaker 1: If you want to know a little bit more about
Speaker 1: these companies and why I made a video calling this
Speaker 1: the iPhone moment, you might want to watch this video
Speaker 1: right here and I'll see you over there.