Speaker 1: Everyone, Welcome to another episode of the Market Disruptors Show. Today,
Speaker 1: I'm sitting down with Simon Dixon. He is the CEO
Speaker 1: and co founder of Bank to the Future. He's also
Speaker 1: also the author of the book also titled Bank to
Speaker 1: the Future, Protect Your Future Before Governments Go Bust, and
Speaker 1: he talks a lot about the same type of content
Speaker 1: that I typically talk about. But I have a lot
Speaker 1: of questions for him, So I'm excited to sit down
Speaker 1: with Simon. Simon, thanks so much for joining us. Yeah,
Speaker 1: thanks for having me. I've been consuming some of your content,
Speaker 1: so it seems like there's a lot of synergy. It
Speaker 1: is great to be here. Yeah, thanks, thank you so much.
Speaker 1: So um, Yeah, I've been, you know, following you for
Speaker 1: quite a while, watching your content, and like I said, yeah,
Speaker 1: we definitely do line up on a lot of stuff.
Speaker 1: But for those that don't really know who you are,
Speaker 1: just give us a little background on on what you've
Speaker 1: been doing and what you're up to. Yeah, so I've
Speaker 1: been I'm working around the subject of monetary reform for
Speaker 1: about twenty years. I started as a economist at university,
Speaker 1: did the masters there. Then I worked in investment banking,
Speaker 1: so I worked as a stockbroker. Then I was a
Speaker 1: market maker on the London Sockets Change and then an
Speaker 1: investment banker helping companies go public. In two thousand and six,
Speaker 1: decided to throw in the corporate towel and return to
Speaker 1: economics and started giving lots of talks and content around
Speaker 1: unsustainable banking and money reform. But no one really cared.
Speaker 1: So then this big thing happened in two thousand and
Speaker 1: eight called the Financial crisis UM, and all of a
Speaker 1: sudden people were interested. So that's when I came across
Speaker 1: somebody that I was writing my book Bank to the
Speaker 1: Future on how to drive how to drive more sustainability
Speaker 1: in the banking system UM, And I was introduced to
Speaker 1: one of the very first bitcoin developers that had moved
Speaker 1: out of this house Soldiers house, moved to a squat
Speaker 1: in London, uh and UH. I went there and then
Speaker 1: spoke at the very first bitcoin conference in the world
Speaker 1: UM and just been involved in investing in the industry
Speaker 1: ever since, and founded the company Bank to the Future
Speaker 1: dot com to help people invest in the industry. Yeah. So, UM,
Speaker 1: you know you talked about in two thousand six kind
Speaker 1: of leaving to go back and start talking about this
Speaker 1: unsustainable UM banking system that we have, unsustainable money system
Speaker 1: that we have. And so that's a long time. I
Speaker 1: mean that's fourteen years now you've been talking about that. UM.
Speaker 1: I know, I got uh kind of educated into the
Speaker 1: Golden sound money by Peter Schiff, and he's been talking
Speaker 1: about the same thing for a really long time. And
Speaker 1: it almost seems like, um, it's inevitable, like we see
Speaker 1: it's coming. But when right, I've been following Peter Schiff
Speaker 1: for a long time. You've been talking about this for
Speaker 1: fourteen years. UM, I understand the win is difficult, but
Speaker 1: it's like as a you know, the broken clock is
Speaker 1: right twice a day or whatever, like like it's unsustainable
Speaker 1: and we're moving towards this inevitable end, but like how
Speaker 1: far can they move that? Do you think about that? Yeah?
Speaker 1: I think about that a lot. And really, if you
Speaker 1: look at what we what our financial system works is UM,
Speaker 1: I call it the world's largest regulator points in scheme UM.
Speaker 1: And really we have these different cycles where our economy
Speaker 1: has to have debt to survive because money is debt,
Speaker 1: and so without without debt, you can't have money in
Speaker 1: the existing system, and so you have these like ten
Speaker 1: year debt cycles UM that lead to some kind of
Speaker 1: systemic risk event. So we had the credit crisis in
Speaker 1: terms of mortgage loans and subpride loans. But we keep
Speaker 1: getting these different events and then recycling the debt, so
Speaker 1: we have to find a new market for debt at
Speaker 1: every cycle. UM. And I think that the government and
Speaker 1: the central banks are shown that they're willing to kick
Speaker 1: the can down the road for as long as they
Speaker 1: can because they don't believe in markets anymore UM. So
Speaker 1: they believe that the stock markets should never crash, it
Speaker 1: should always go up, and every time it does crash,
Speaker 1: that they need to fill that gap UM. And they
Speaker 1: do that by either encouraging consumers to take on more debt,
Speaker 1: companies to take on more debt, by a central bank
Speaker 1: buying their bonds and then then pushing up prices UM,
Speaker 1: or government's taken on that debt, or central banks taking
Speaker 1: on that debt through q E UM. But I think
Speaker 1: that we're going to hit rather than a systemic crash
Speaker 1: of the whole system UM. I think we're going to
Speaker 1: actually hit a monetary reform similar to what we saw
Speaker 1: in when we had Breton Woods and in one when
Speaker 1: they went off the gold standard UM, and I'm forecasting
Speaker 1: that we will see a monetary renegotiation before we'll see
Speaker 1: a systemic craps of the entire system. And I think
Speaker 1: they've got a few more tricks up their sleeves to
Speaker 1: kind of roll it up a little bit further. And
Speaker 1: the implications rather than allowing the financial system to collapse, UM,
Speaker 1: is that a new money and a new monetary system
Speaker 1: will be created that will really affect your personal liberties, privacy, privacies,
Speaker 1: and freedoms. UM, but they will be able to make
Speaker 1: it sustainable. And I think that I've got a few
Speaker 1: ideas and how they'll do that. Wow. I think that's
Speaker 1: a great topic and we are going to dig into that.
Speaker 1: But before we do, UM, you talked about how our
Speaker 1: system is a debt based system and our money is
Speaker 1: really debt, right, and so UM, our whole system is
Speaker 1: built up debt. So if we don't continue to increase
Speaker 1: the debt, then it falls apart. UM. But it's our
Speaker 1: money as a debt based system compared to what what
Speaker 1: other money system is there? Well, there are different forms
Speaker 1: of money in the economy. So I created a video
Speaker 1: once called six Forms of money one of them. UM.
Speaker 1: You know, the government do actually create a non debt
Speaker 1: based money is called cashing coins UM. So the notes
Speaker 1: and cash in your pocket is not created as debt UM.
Speaker 1: It's simply created and sold to a bank when they
Speaker 1: need to. So if essentially, when you print a note
Speaker 1: across about three cents for the to be created by
Speaker 1: the royal mint or whoever it is in which country
Speaker 1: you're in, UM and if it was say a ten
Speaker 1: dollar notes, there'll be nine dollar ninety seven margin, and
Speaker 1: it's sold to a bank UM and that profit of
Speaker 1: nine dollars ninety seven reduces the amount of tacks that
Speaker 1: one needs to pay. It's called scenerage UM. And about
Speaker 1: three percent of the money supply is created debt free
Speaker 1: by by governments UM and UH it's added to treasuries
Speaker 1: balance sheeting as a form of income. But the rest
Speaker 1: of the money of it was outsourced to the private
Speaker 1: banking sector UM and so the private banking sector they
Speaker 1: create a digital currency every time they issue alone, and
Speaker 1: it's a digital representation of the government's debt free currency.
Speaker 1: So the cash and coins is a debt free currency UM.
Speaker 1: And anything in your online banking is all a digital
Speaker 1: currency that's created by the private banking sector and backed
Speaker 1: by debt. If you rewind into history, you had things
Speaker 1: like in the American Civil War, Abraham Lincoln actually created
Speaker 1: a green back, which was a debt free money supply, um,
Speaker 1: and it funded the American Civil War. UM. And so
Speaker 1: there are throughout history there's never been, you know, this
Speaker 1: absolute conclusion that money has to be created as debt.
Speaker 1: And in fact, if anyone was to engineer a financial
Speaker 1: system from scratch and nobody would come up with that solution,
Speaker 1: it actually was just through decades and decades of reforms,
Speaker 1: it actually turned into the financial system we have today.
Speaker 1: How many people confuse this, They think that debts the problem.
Speaker 1: Debt in itself is not the problem. The problem is
Speaker 1: creating money as debt, which is the problem. And once
Speaker 1: you've got a money supply, you can use that as
Speaker 1: a very you know, legitimate instrument too for people that
Speaker 1: want to put together borrowers and savers like appear to
Speaker 1: be a lending or collasterized loans like we see in
Speaker 1: the crypto market. UM. But when you give someone simultaneously
Speaker 1: the ability to create new money every time the issue alone,
Speaker 1: you end up in a Ponzi scheme where debt is
Speaker 1: required in order to have an economy. Um. So there's
Speaker 1: these different schools of thoughts around monetary systems, you know. Um,
Speaker 1: some people believe that you need to regulate how much
Speaker 1: did require and see a bank can create through Austrian
Speaker 1: economics and a gold standard. Um. I go as a
Speaker 1: step further that, I think you shouldn't allow banks to
Speaker 1: create money rather than using gold to regulate how much
Speaker 1: money they create. Yeah, so if we if we kind
Speaker 1: of go backwards, and as you said, this is really
Speaker 1: evolved for a long time, but if we look at
Speaker 1: maybe some big moment, you know, monumental times throughout history.
Speaker 1: Really we had, as you mentioned in forty four, like
Speaker 1: the Bretton would have freements. So the whole world was
Speaker 1: on a gold system, and so you had to have
Speaker 1: a certain amount of gold a reserve for the amount
Speaker 1: of money that you created. And then, UM, I guess
Speaker 1: even at that point it was like it was like leverage,
Speaker 1: but at least it was somewhat backed. It wasn't debt back.
Speaker 1: I mean, is that correct? And then in v we
Speaker 1: got off the gold center and it it became a debt back.
Speaker 1: Is that how you see it or is that so? Yeah,
Speaker 1: there was. There was different forms of gold standard, and
Speaker 1: it evolved over time, but the most recent one was
Speaker 1: back by gold um and it was used as a
Speaker 1: mechanism in order to keep central banks and the private
Speaker 1: credit creation system in check because you'd end up losing
Speaker 1: all your gold if you if you had bad monetary policy. Um.
Speaker 1: Then that was. But the problem with the gold standards
Speaker 1: is it is inevitable, predictable, and guaranteed to be re
Speaker 1: renicked on because if you actually you know, many many
Speaker 1: economists blamed the Great Depression on the old standards because
Speaker 1: they couldn't create the amount of money that they wanted
Speaker 1: to create. Um. And there's some truth in that. But
Speaker 1: there is another option, which is actually creating money debt
Speaker 1: free rather than debt back and competing with other forms
Speaker 1: of free money, um, you know, more free market money. Um.
Speaker 1: But yeah, And then in one with the Nixon Shock
Speaker 1: that was executed in three we essentially moved to a
Speaker 1: US dollar debt back standard and all currencies were traded
Speaker 1: against each other. So the financial system that that that
Speaker 1: that we have today isn't actually that old. And if
Speaker 1: you look back at monetary history with the exception of
Speaker 1: the British pound, which was a world reserve currency for
Speaker 1: about three hundred years. On average, no currency has survived
Speaker 1: more than fifty years, and in fact an average of
Speaker 1: twenty seven years. So we are due in monetary renegotiation
Speaker 1: and throughout the five thousand years of monetary history since
Speaker 1: gold has been around. Um, we always get them. Yeah, yeah,
Speaker 1: they say the pound is the most successful currency in
Speaker 1: the world because it's been around the longest, But in
Speaker 1: terms of holding value, it sure hasn't done a very
Speaker 1: good job, has it. No currency has ever survived and
Speaker 1: never holds value, So there's there's no there's none of
Speaker 1: them were a good store of value. They're they're actually
Speaker 1: designed not to hold value, right because they're built with
Speaker 1: this inflation mechanism into it. So it's it's meant to
Speaker 1: lose value over time, exactly. And if you are if
Speaker 1: you hold like the US government almost thirty trillion dollars
Speaker 1: of debt, then you want the value of the currency
Speaker 1: to go down, um, so that you don't have to
Speaker 1: repay a larger amount of debt each month. You know
Speaker 1: that that's that's designed into the system, right, So we
Speaker 1: have this debt based system and I think since nineteen
Speaker 1: seventy one or seventy three when we got off the
Speaker 1: gold standard, we've created something like whatever, three trillion dollars
Speaker 1: out of debt, you know, out of debt or whatever.
Speaker 1: And it seems like, as you just said, about every
Speaker 1: ten years, we have this kind of terry shock. And
Speaker 1: it's almost like this, this this balloon tries to deflate
Speaker 1: and then they have to pump it back up, and
Speaker 1: then tries to deflate and then tries to they pump
Speaker 1: back up. But each time they pump it back up,
Speaker 1: it goes bigger and bigger and bigger. Um. And you
Speaker 1: think that they still have a couple more pumps left,
Speaker 1: a couple more tricks left. Um. I actually think that
Speaker 1: this one within the next three to five years, or
Speaker 1: even in the next year or so. You've got a
Speaker 1: time that with election cycles, because no one will do
Speaker 1: a monetary reform when they're about to be elected. So
Speaker 1: you've got to get through the next election cycle. And
Speaker 1: I'm talking about America because you know, of all currency
Speaker 1: in the world, just dollars and fifty of all transactions
Speaker 1: and dollars, so you know, dollars affects everyone, right, um,
Speaker 1: And so you've got to get past that. And then
Speaker 1: I think we're at a very interesting time in history. UM.
Speaker 1: And in two thousand and eleven, I uploaded the video
Speaker 1: to my YouTube channel called the Great Depression of Twenties UM,
Speaker 1: and it talked about this call of KINGSI and monetaris
Speaker 1: and economics UM and then leading to the systemic risk events.
Speaker 1: And the video said, I didn't know a pandemic was coming,
Speaker 1: but I knew that something was coming because there's always
Speaker 1: a trigger. And and then the differences is that each time,
Speaker 1: I think the appetite of what one needs to do.
Speaker 1: So what tours do we have? We don't have interest
Speaker 1: rates anymore, we have the central banks balance sheet. And
Speaker 1: now they've announced infinite you know UM, and that's working
Speaker 1: to keep investors into the stock market. Now they've announced
Speaker 1: infinite quee UM. But eventually you get some kind of
Speaker 1: you know, systemic risk event. I'm forecasting that it will
Speaker 1: be the end of some of the government subsidies that
Speaker 1: leads to more unemployment, more bankruptcies and some of the
Speaker 1: loans that was just restructured, which are due to if
Speaker 1: the last bit of bailout for US consumers was businesses
Speaker 1: could borrow money um and if they agree to keep
Speaker 1: their their their staff and don't lay any off by
Speaker 1: the end of October, then they don't have to repay
Speaker 1: the loan. So a lot of people are keeping their
Speaker 1: staff on not so that they don't have to repay
Speaker 1: the loan. And then I think it will lead to
Speaker 1: a lot of another spike in unemployment, which will then
Speaker 1: exposed the weakness of the real estate markets when at
Speaker 1: the moment that essentially all mortgages and real estate is
Speaker 1: being paid by the individuals that live in months to
Speaker 1: month because of these government subsidies, and so if some
Speaker 1: of those go and then it exposes some of the
Speaker 1: weaknesses and a coupler systems the banking system and also
Speaker 1: the pension system because the bank sold all their bad
Speaker 1: debt to your pension already during the last financial crisis.
Speaker 1: But the when when we have to rescue those systems.
Speaker 1: The options you have is a bail in, which is
Speaker 1: essentially the bank saying that they would take your deposits
Speaker 1: and use it, and they usually issue some kind of
Speaker 1: stock like they did in Cyprus, where instead of your
Speaker 1: deposit you end up with bank stock um or they
Speaker 1: can do a bailout. But I think with the record
Speaker 1: levels of civil unrest, um and rioting right now, if
Speaker 1: the government proposed to bail out any of the banks
Speaker 1: as a result of this, I don't think they could
Speaker 1: get away with it this time. So what I'm forecasting
Speaker 1: is that they will actually allow the banks to go
Speaker 1: bust this time, but they don't want depositors to lose
Speaker 1: their money. The way they can do that is through
Speaker 1: a central bank digital currency, which every central bank in
Speaker 1: the world has already been working on UM, and that
Speaker 1: central bank digital currency could be Let's say you had
Speaker 1: ten thousand dollars that Chase Bank, and Chase Bank was
Speaker 1: was not bailed out this time, then you could download
Speaker 1: an app and it would obtain ten thousand dollars of
Speaker 1: the central bank digital currency, and that money is debt
Speaker 1: free money. Essentially, you're taking all the over leverage of
Speaker 1: the bank and you're replacing it with debt free money
Speaker 1: issued by the government or the central bank, just like
Speaker 1: they issued the green bags to fund the American Civil War,
Speaker 1: but this time it would be fully digital UM and
Speaker 1: they can put a stimulus package out there. Their next
Speaker 1: round of helicopter money could be download this app we'll
Speaker 1: give you the money, um, and they deleverage the leverage
Speaker 1: in the banking system and replace it with a central
Speaker 1: bank digital currency is what I think their next movers
Speaker 1: and so essentially that central bank taking on all the
Speaker 1: balance sheet of the world um and uh and yeah,
Speaker 1: and and becoming a bank and issuing a p I
Speaker 1: T S allowing financial technology companies to build on top
Speaker 1: of it, um and move into a more pit payer
Speaker 1: financial system. But it will be very, very expensive, as
Speaker 1: I said, in terms of the impact that currency has
Speaker 1: on your freedoms or liberties and your your privacy is
Speaker 1: going to not be a very nice currency in any way,
Speaker 1: shape or form. Yeah, I actually see something very similar
Speaker 1: in that trusting you bring that up. I want to
Speaker 1: talk about that, um, but before we do, just to
Speaker 1: kind of preframe that for the listeners. UM. So, typically
Speaker 1: the way that it's been done is the central banks
Speaker 1: have been creating more debt, and they've been doing that,
Speaker 1: as you said, really through quantitative easing, which means that
Speaker 1: money really goes into the banks and it really just
Speaker 1: goes goes back to more financial assets. It's never really
Speaker 1: been given to the people until just recently with this
Speaker 1: pandemic where they gave a little bit I mean bucks
Speaker 1: to some people if they make under a certain amount
Speaker 1: of money or whatever. Right, Um, But what you're talking
Speaker 1: about is something different where the instead of building out
Speaker 1: the banks and the financial system like they are doing today,
Speaker 1: you're saying they might just say, Ah, screw those guys,
Speaker 1: let's just go and bail out the people directly. Yes,
Speaker 1: So you've got to look at when each each debt
Speaker 1: cycle creates a greater level of debt from consumers, businesses,
Speaker 1: and governments um, and all of that debt needs to
Speaker 1: be repaid plus interest. Well, it doesn't need to be
Speaker 1: repaid because it's a always rolled over UM and as
Speaker 1: long as the credit rating of the US government is okay,
Speaker 1: they can keep rolling it over for as long as
Speaker 1: people would take it. UM. But the yeah, the each
Speaker 1: inflation is not just for me um, just an increase
Speaker 1: in the money supply. It's also the factor in the
Speaker 1: interest of all of this debt. So if you have
Speaker 1: to service a lot of your debt and your debt
Speaker 1: levels are increasing at every cycle, you will inevitably have
Speaker 1: to put your prices up to a factor in the
Speaker 1: interest on your debt UM and so inflation is not
Speaker 1: just in my perspective, a monetary phenomenon, but it's also
Speaker 1: interest rates and debt phenomenon that is factored into the equation.
Speaker 1: And the interesting thing is that if you look at
Speaker 1: if you look throughout history, that money printing during a
Speaker 1: depression has always been non inflationary in those cases. But
Speaker 1: if you continue to imprint the money supply an increase
Speaker 1: the money supply during a a bull market, as you
Speaker 1: start to enter recovery, um, you start to get you know,
Speaker 1: a destructive effect on the currency in terms of risking
Speaker 1: leaving into an inflation re environment. Um. And if it
Speaker 1: goes terribly wrong, a hyper inflation re environment like we've
Speaker 1: seen in many countries. Um. And so you know, it's
Speaker 1: it's not a very desirable outcome to do that. And
Speaker 1: I think that, yeah, the factoring in all this debt
Speaker 1: into the equation, that means at this stage you need
Speaker 1: to complete renegotiation in order to get out of that. Yeah. Um.
Speaker 1: And as far as the end game, which you already
Speaker 1: kind of highlighted, which we're going to dig into, I mean,
Speaker 1: I kind of see the same thing, but before we do,
Speaker 1: I'm trying to kind of understand what what triggers that,
Speaker 1: because if I we understand what triggers that, it also
Speaker 1: has implications of what that solution is. But before we
Speaker 1: get back to that just quickly, I mean, so we're
Speaker 1: talking about UM, you know, the money creation and when
Speaker 1: will stop or whatever, and so we have UM, I
Speaker 1: know you've talked about out you know, maybe a few
Speaker 1: different types of money systems or economics schools, schools of
Speaker 1: thought kenzie in UM, Monitorizism, Austrian UM. We have a
Speaker 1: new school of thought maybe if you consider it that
Speaker 1: that's really being pushed today. And I think depend on
Speaker 1: who wins the election, we're gonna see it really makes
Speaker 1: some inroads. And that's m m T modern monetary theory.
Speaker 1: And so we have UM the economic advisors on the
Speaker 1: Biden camp trying to push this Green New Deal or
Speaker 1: now he's calling it the Biden Deal or whatever it is.
Speaker 1: But essentially it's UM committing to spend thirty to nine
Speaker 1: trillion dollars to rebuild the system as a as a
Speaker 1: renewable energy UM. And let's not I don't want to
Speaker 1: dig into that policy, but the fact that they can
Speaker 1: just go spend thirty to ninety trillion dollars. Where does
Speaker 1: that money come from? It's obviously this m m T
Speaker 1: of just being able to print money. Um, I mean
Speaker 1: will that work and they continue just to print that money?
Speaker 1: And if so, won't that hold off this debt collaps
Speaker 1: that you're talking about. Yes, And modern monetary theory is um.
Speaker 1: So if you look at the system you were just
Speaker 1: talking about, the prevalent way of money creation at the
Speaker 1: moment is through quantitative easy and what that essentially, what
Speaker 1: that is is the central bank just creates money which
Speaker 1: is a digital ledger in their balance sheet, and then
Speaker 1: it used that money in order to purchase government debt.
Speaker 1: And so the government is actually borrowing the money and
Speaker 1: having to pay interest on that money for money and
Speaker 1: creation from the treasury to the Federal Reserve UM. And
Speaker 1: that is a really really inefficient system. There's no point
Speaker 1: the government borrowing the money when you start to actually
Speaker 1: understand the mechanism, because the government already has the ability
Speaker 1: to create the money and supply um. It can do
Speaker 1: that as it chooses, but instead it outsources it to
Speaker 1: the Federal Reserve UM and has to repay in factor
Speaker 1: in all this debt on top of that. So modern
Speaker 1: monetary theory says, well, why doesn't the government just create
Speaker 1: the money in its own in the first place and
Speaker 1: not have to factor in all this interests and debt
Speaker 1: um And the reality is that the effect is that
Speaker 1: exactly the same, but it's much more efficient because you
Speaker 1: can remove away this pretense. You can stop having these
Speaker 1: forms of money that no one understands m and one
Speaker 1: and two and three and four, and you can just
Speaker 1: have a money supply called them, which is the government
Speaker 1: creating money, deciding how to spend that um, and then
Speaker 1: the people judging whether they create inflation or deflation based
Speaker 1: upon a transparent form of money supply. And if the
Speaker 1: government destroys the money supply, you know who to blame.
Speaker 1: You don't get this game of the federal reserve blaming treasury,
Speaker 1: then socialists blaming capitalists, and all of the typical left
Speaker 1: right wing arguments that we have today. Um. You know,
Speaker 1: if you if you accept that governments can actually create
Speaker 1: money rather than actually doing it indirectly and giving it
Speaker 1: to the Essentially, today we have a private form of money,
Speaker 1: which is the banks creator every time they issue alone
Speaker 1: um all the central bank creates it every time they borrow,
Speaker 1: they decide to allow spend more money in the government,
Speaker 1: and the government borrows it from them. Why not just
Speaker 1: actually have a transparent form of money that's actually created
Speaker 1: by the government. Um. And I hear all the free
Speaker 1: markets and everyone like rolling over their graves and concerned
Speaker 1: about that, and I too would be concerned about it.
Speaker 1: But thankfully we have competing forms of money today where
Speaker 1: if you don't like that, you cannot doubt um. But yeah,
Speaker 1: modern monetary theory states that the government can just simply
Speaker 1: spend it into the economy. Um. And in effect, rather
Speaker 1: than banks actually lending it into the economy, um, you
Speaker 1: just have governments doing what essentially people most people think
Speaker 1: governments do, which is providing the money supply to the economy.
Speaker 1: And maybe that then ties into kind of what you
Speaker 1: see being the solution. So you talk about, you know,
Speaker 1: all these people with money in the bank and potentially
Speaker 1: losing the money in the bank, but also all the
Speaker 1: obligations pensions, um, you know the four O one case
Speaker 1: and things like that, you know, social security, etcetera. To
Speaker 1: all the obligations, and so if the system collapses, all
Speaker 1: those people that are depending on their money or their
Speaker 1: income or their retirement could potentially see it go away.
Speaker 1: And you're saying that if that were to happen that
Speaker 1: I think the banks or the government would instead of
Speaker 1: bailing out the banks to give the people back their money,
Speaker 1: they might just give the people back their money directly
Speaker 1: through this new CBDC, the Central Bank digital currency um,
Speaker 1: and even maybe pay for all the obligations. And so
Speaker 1: maybe at that point it switches from bank based issued
Speaker 1: money to government issued money. Yeah. We we we essentially
Speaker 1: moved from capitalism to socialism, um. And that is where
Speaker 1: I think we're headed. Um. And if you want to
Speaker 1: get more extreme, then some governments will for communism. But
Speaker 1: we can already see that the writings on the wall
Speaker 1: in that sense. Um. So what I'm interested in is
Speaker 1: accepting that we money. The end game is a percent tax.
Speaker 1: The d is communism is riots in the streets. It's
Speaker 1: it's that's the end game, um. And I don't think
Speaker 1: there's any fighting that because of the cycles that we're
Speaker 1: in the only alternative is to actually move back to
Speaker 1: sour money cause of depression, cause a recession. Um, except
Speaker 1: that everyone's gonna real estate is massively overvalued. We have
Speaker 1: to have ginormous asset price deflation UM and UH, and
Speaker 1: monetary inflation as well, probably UM. So you know that's
Speaker 1: the alternative of trying to combat the system by returning
Speaker 1: to a gold standard or exercising if you were designing
Speaker 1: a system from scratch, that's probably what you've come up with.
Speaker 1: But now we are where we are in regards to
Speaker 1: that though. So you talked about, you know, at the
Speaker 1: end of whatever World War one and going into the
Speaker 1: Great Depression, A lot of people have blamed it on
Speaker 1: the gold standard because I think over and you know, England,
Speaker 1: they had printed a way too much money to fight
Speaker 1: the war, and I think Churchill said, hey, we can't
Speaker 1: go back to the gold standard because or no, it
Speaker 1: was actually I think it was Keens Warren Churchill, Hey,
Speaker 1: we can't go back to the gold stand because we'll
Speaker 1: cause massive deflation. We've printed too much money. So what
Speaker 1: we have to do is we have to double the
Speaker 1: price of gold. And if we double the price of gold,
Speaker 1: things will be okay. And Churchill said, no, no, no,
Speaker 1: that's not going to happen, and then they revalued back
Speaker 1: to the original price of gold and everything collapsed. I
Speaker 1: mean that that seems to be the history that I've read.
Speaker 1: But uh, without digging into that, but back to kind
Speaker 1: of what you're talking about, we have to deflate the assets.
Speaker 1: Couldn't we just increase increase the price of gold to
Speaker 1: fifty thousand or a hundred thousand. Yeah, I mean, so
Speaker 1: that's another solution. You know, if you subscribe to some
Speaker 1: of you know, the gold stand and these are all
Speaker 1: viable solutions. We can return to a gold standard, decide
Speaker 1: gold in order to make that feasible. But I don't
Speaker 1: think there's any political will, and I just didn't think
Speaker 1: there's something that governments wanted to do that. The alternative
Speaker 1: to that is they can have complete control over our money,
Speaker 1: all of our freedoms, how we spend our money, what
Speaker 1: we do with our money, how to tax the money. Um.
Speaker 1: And you can move it to the end game, which
Speaker 1: is socialism UM and and and more communist style society,
Speaker 1: even the right wings and moving the economies over that way.
Speaker 1: You know, I don't think this is a left right argument.
Speaker 1: The systemic nature of creating money as debt drives you
Speaker 1: to tax as the end game. UM. It's the only
Speaker 1: game you can get from the system. Um And, so
Speaker 1: far money is just inevitably moving in that direction, which
Speaker 1: is why I think the important part is to have
Speaker 1: opt out and have alternatives that people can actually make
Speaker 1: choices with. Yeah, yeah, I agree with you, right, I mean,
Speaker 1: the we just understand human nature. They're not going to
Speaker 1: wake up tomorrow and be like, oh, let's live within
Speaker 1: our means. Although they're never gonna opt to go back
Speaker 1: to that, and so I say, they're gonna go till
Speaker 1: they blow. Right, It's gonna go till it doesn't work anymore.
Speaker 1: But I also agree with you, and it's a great
Speaker 1: point at um. They constantly want more power and constantly
Speaker 1: want more control, more surveillance, and so it helps them
Speaker 1: establish both of those. So let's talk about that. So UM,
Speaker 1: I was kind of thinking similar thing to you, right,
Speaker 1: the bank's collapse. We have f d I C insurance,
Speaker 1: but instead of saying, hey, we'll just give the banks
Speaker 1: back the money, let's just swap it out for a
Speaker 1: central bank digital currency. I've talked about on the channel
Speaker 1: that we already know that they're already working on it,
Speaker 1: and the Feds already said it. They've hired the exact
Speaker 1: from point Base. Probably early next year, we probably see this, um,
Speaker 1: And so how do you think that transition works. I
Speaker 1: see that a lot of population maybe isn't ready for that.
Speaker 1: I mean, how do you see that kind of rollout happening. Yeah,
Speaker 1: it's really easy. It won't look like Bitcoin. It won't
Speaker 1: need the blockchain, it doesn't need any of that stuff.
Speaker 1: It just needs to be a digital ledger that they
Speaker 1: sit in fact, they already do it. So the private
Speaker 1: banks right now, if you have a clearing bank account
Speaker 1: with the central banks, like the the large clearing in
Speaker 1: banks do they have, then there are just digital ledgers.
Speaker 1: This is how the repo markets work. This is how
Speaker 1: all the you know, the large markets money markets for
Speaker 1: banks work. They're just s employee digital ledgers held at
Speaker 1: the central bank. So the easy way to roll it
Speaker 1: out is you just keep you keep stimulating like you
Speaker 1: are right now. You commit to unlimited QUEI, you do
Speaker 1: everything you can to try and win the next election,
Speaker 1: and then at some point during the next year or two,
Speaker 1: some kind of systemic risk events can happen, as it
Speaker 1: always does. Um you know, this one was a pandemic.
Speaker 1: The last one was a crazy little islands like Iceland
Speaker 1: that got taken over by investment bankers that caused the
Speaker 1: exposed the global financial crisis, um, you know, completely globally.
Speaker 1: And so this could be student cards, student debts, This
Speaker 1: could be credit card debts. Take any one of those
Speaker 1: BONSI schemes, um, you know, social security, whatever you want
Speaker 1: to pick, one of them is going to show their weakness, um,
Speaker 1: and that will expose one bank, and one bank will
Speaker 1: be exposed to that, or it will be your pension
Speaker 1: because the banks, you know that what what came out
Speaker 1: of two thousand and eight that never went away was
Speaker 1: the repackaging of their debts so that they don't have
Speaker 1: to take the risk and then they can sell it
Speaker 1: to your pension with a triple A grades rating on it. Um.
Speaker 1: You know that still exists, and so many of the
Speaker 1: banks are in a good place because they've repackaged. Just
Speaker 1: why Warren Buffett is dumping some bank stocks and keeping
Speaker 1: other bank stocks. He's getting rid of all the bank
Speaker 1: stocks that are over leveraged and that will be exposed
Speaker 1: to these events, and keeping his Bank of America because
Speaker 1: they may not be over leverage to these particular products.
Speaker 1: And so you know what I think will happen is
Speaker 1: you'll get one of the banks that will be exposed
Speaker 1: that will then show the house of cards. F d
Speaker 1: I CE can no way ensure all of your deposits.
Speaker 1: Fd I see is is simply you know they hold
Speaker 1: their money in treasuries, which is the government debt. They
Speaker 1: don't have cash because they can't hold cash because then
Speaker 1: they'd be exposed to whichever bank they're using to ensure
Speaker 1: the banking system UM. And so f d i C
Speaker 1: is built for one or two banks going bus, not
Speaker 1: the entire system going systemically risk. They've only got one
Speaker 1: percent of all the deposits in the bank is actually
Speaker 1: insured by f d i C UM, so it's not
Speaker 1: designed to actually protect the system, so that at that
Speaker 1: stage you know you need to bail out f d
Speaker 1: i C. Remember before fd i C, there was f
Speaker 1: s l i C, which is the the the equivalent
Speaker 1: of the insurance for the savings and loan scheme that
Speaker 1: was you know that when BUS it couldn't ensure what
Speaker 1: it is liabilities, so we got rolled over into f
Speaker 1: d i C. So the deposit insurance protection schemes are
Speaker 1: available and they can't tackle systemic risk events. They can
Speaker 1: only tackle one financial institution or two being exposed at
Speaker 1: this time. So the way that they could roll it
Speaker 1: out is let the bank go bust. Um. You then
Speaker 1: get to align with the people that don't want to
Speaker 1: bail out anymore. They don't want all the money, the
Speaker 1: taxpayer's money going to pay bonuses. Um. And you just
Speaker 1: simply sell them, Well, how do you get traction for
Speaker 1: your new digital currency app? Well, if you had ten
Speaker 1: thousand dollars with this bank, download this app. You got
Speaker 1: ten thousand dollars. Um. If everyone would like in order
Speaker 1: to simulate this economy, if everyone would like ten thousand
Speaker 1: dollars for free, download this app. And then you're gonna
Speaker 1: have to opt into giving away all your freedom. So
Speaker 1: you're gonna have to opt in for compulsory vaccines, You're
Speaker 1: gonna have to opt in for automated tax collection. UM.
Speaker 1: You're gonna have to opt in for every kind of
Speaker 1: freedom and liberty. Um. You know that you've got being
Speaker 1: taken away one by one. Why because we've got this
Speaker 1: pandemic just like we had after the last nine and eleven. Um.
Speaker 1: We have the ultimate reason for you to opt out,
Speaker 1: which is fear. Um, And it's genuine. You know that
Speaker 1: this is a this is a systemic event, and you
Speaker 1: have these inevitabilities that expose the weaknesses of the systems.
Speaker 1: That gets everyone's walked in. And already all the financial
Speaker 1: technology companies can build on top of the API of
Speaker 1: the central bank, UM, and they can you know, the
Speaker 1: central Bank doesn't want to do customer service, but they
Speaker 1: will open up their API and other financial technology companies,
Speaker 1: UM can do that. And even banks will you know,
Speaker 1: come back again, there's a the CEOs of those banks
Speaker 1: will leave that create their own fintech startup and build
Speaker 1: on top of the new system. Yeah, and we're already
Speaker 1: seeing that foundation built. I did a video talking about
Speaker 1: fed coin what we're calling it, and the FED ruling
Speaker 1: this out. But um, all the banks that are tied
Speaker 1: to the FED, that are able to create the debt
Speaker 1: for the FED are required now to build out their
Speaker 1: own wallets and so like they're already prepping for this
Speaker 1: and to be that customer service arm of the FED
Speaker 1: if you will something like that. UM, do you see
Speaker 1: this just happening through dollars first or is this kind
Speaker 1: of like a global thing that happens at the same time.
Speaker 1: That's a really hard one to forecast because I think,
Speaker 1: you know, the US credit rating is still very very strong.
Speaker 1: People still consider the dollar a sort of value. Um.
Speaker 1: They still consider it a flight to safety. Um. And
Speaker 1: it's a very very strong currency in terms of its
Speaker 1: power is purchasing power around the world. You know, off
Speaker 1: my seat money. I still hold most of my FEAT
Speaker 1: money in dollars um, and I wouldn't consider holding it
Speaker 1: in anything else other than the money that I need
Speaker 1: to spend in my domestic currency. So, UM, I think
Speaker 1: the US has still got a bit further to go.
Speaker 1: I think in terms of the monetary renegotiation, who gets
Speaker 1: the seat at the table, I think it would be
Speaker 1: based upon who has the largest goal to GDP reserves. Um.
Speaker 1: So you've got Russia, You've got Europe, which is essentially Germany. UM,
Speaker 1: You've got you've got China, and you've got US. And
Speaker 1: I think they will be the ones that will be
Speaker 1: renegotiating the new monetary system in the next by a
Speaker 1: few years. Um. And yeah, so you think this rollout
Speaker 1: of the digital currency is an interim step into the
Speaker 1: new new monetary system. So it's not the new monetary system,
Speaker 1: it's kind of what leads up to the new monetary system. Yeah.
Speaker 1: And you've also got competing forces like the I m
Speaker 1: F and the World Bank. They all want to list
Speaker 1: they all want to list their own global digital currencies. Um.
Speaker 1: They are you know, their their position to be the
Speaker 1: end game of rolling up in solvent central banks. Um.
Speaker 1: And so it all depends on the strength I think.
Speaker 1: So you know a bit of policy. If I were
Speaker 1: advising a smaller central bank right now, UM, I would
Speaker 1: be advising them and I have been advising them to
Speaker 1: take an asymmetric bet on bitcoin. UM. I think in
Speaker 1: several years back, I wrote a I released a video
Speaker 1: called what was the video called how the How Bitcoin
Speaker 1: could become a central global reserve currency. By It's not
Speaker 1: meant to happen that way, but it's an extreme example
Speaker 1: of if you are a country like Lebanon, and we're
Speaker 1: starting to see this in Iran already, in order to
Speaker 1: get around sanctions, Iran is starting dedicating some of their
Speaker 1: electricity to mining bitcoin. UM. And if you have a
Speaker 1: currency like Lebanon that no one wants, you can't use
Speaker 1: it to purchase any mining equipment, but you might have
Speaker 1: spare electricity power. Then you could use it to mind bitcoin.
Speaker 1: You could give it to your central bank in order
Speaker 1: to hold it on some of its balance sheet. You
Speaker 1: can make an announcement to the world that you are
Speaker 1: diversifying from the dollar, golden treasuries and you're holding some bitcoin,
Speaker 1: and that would create such a fomo, a countrywide fomo
Speaker 1: UM and big impact on the price and the market.
Speaker 1: Can that you would end up in a situation like
Speaker 1: bulgar Area was, you know, Bulgaria and several years back
Speaker 1: they confiscated two hundred thousand bitcoin from UM, an illegal
Speaker 1: crime group UM, and that those two hundred thousand bitcoin,
Speaker 1: by the time they actually got through and got those
Speaker 1: it was worth more than the entire country's national debt
Speaker 1: of Bulgaria UM. And funnily enough, due to chrony capitalism,
Speaker 1: those bitcoin just disappeared to politicians wallets and never have
Speaker 1: found themselves on the central banks balance sheet or the
Speaker 1: government's balance sheet. UM. But I think it highlights the
Speaker 1: fact that you can have an asymmetric risk, just like
Speaker 1: individuals can now you know, have an asymmetric risk on bitcoin.
Speaker 1: I think governments, I think central banks, well, I think
Speaker 1: businesses already are starting to We started to see, you know,
Speaker 1: businesses announcing that they're holding their reserves in bitcoin. We
Speaker 1: started to see hedge funds already saying called Tudor Jones
Speaker 1: saying that he's going to hold one to two percent
Speaker 1: of his hedge fund in bitcoin. Why is he doing that?
Speaker 1: Because if he can outperform the hedge fund industry through
Speaker 1: holding bitcoin, then all the other hedge funds have to
Speaker 1: adjust to that, and he gets a higher you know,
Speaker 1: he gets the highest performing hedge funds, as it has
Speaker 1: in the crypto market. And I think that that that
Speaker 1: that translates to central banks. Now, the Federal Reserve will
Speaker 1: be the last to do that. You know, they'll be
Speaker 1: holding onto the end. Why because they're the incumbent. So
Speaker 1: this is a game of the disruptors disrupting the incumbent
Speaker 1: in a ginormous game of global currency wars that is
Speaker 1: determined by how much gold reserves you have, and who's
Speaker 1: going to be bravest and first to bitcoin. That's where
Speaker 1: I think we're head of over the next five years. Yeah,
Speaker 1: that's that's interesting over the next five years too. Um.
Speaker 1: It seems like the thing with currencies and this is
Speaker 1: where like I lose a little bit on the central
Speaker 1: bank digital currencies, and I think this is what you're
Speaker 1: alluding to. But you can you can correct me, but um,
Speaker 1: it seems that all currencies, at the end of the
Speaker 1: day are only as good as we think they are.
Speaker 1: They're built on trust, and that's why I like and
Speaker 1: people say, oh, it's backed by the military, but you
Speaker 1: look at like Venezuela. Well they had a military, but
Speaker 1: still nobody wanted to use the currency. There was lying
Speaker 1: the streets with you know, like trash, right, um. And
Speaker 1: so if the currency gets destroyed, the government can print
Speaker 1: as much as they want, to give as much as
Speaker 1: they want, but nobody may want to use that. And
Speaker 1: so I think that's kind of what you're saying, where um, well,
Speaker 1: hey we're gonna print more money, and hey we're gonna
Speaker 1: give you ten tho of this new currency. But people
Speaker 1: don't want it, and so then they go opt for
Speaker 1: something else they think holds value or they trust they
Speaker 1: can trust better, like bitcoin. Yeah. I mean it's uh,
Speaker 1: you know, it's about different use case for different money.
Speaker 1: So fear is still a very useful form of money
Speaker 1: to me. If I'm you know, if I want to
Speaker 1: make short term expenses, I hate using bitcoin for short
Speaker 1: term expenses. Yeah, um, you know, I I bought my
Speaker 1: house with bitcoin. Um, and it was an absolute nuisance.
Speaker 1: It took you know, nine months because the seller wanted
Speaker 1: would only accept FEA money, and so I had to
Speaker 1: prove the source of wealth to the bank, and I
Speaker 1: had to show them how I acquired those bitcoin the
Speaker 1: day I acquired them, showed them on the block chain,
Speaker 1: showed that they weren't the proceeds of crime. And that
Speaker 1: whole process took about nine months to get signed off.
Speaker 1: And during that time, the price of bitcoin, you know,
Speaker 1: went from around about twenty thousand dollars to three thousand
Speaker 1: dollars um. And if I was trying to make a
Speaker 1: transaction in that time, it's really really challenging to do
Speaker 1: that if you're spending in fears, you know, personally, but
Speaker 1: when it comes to savings, like you know, I won't
Speaker 1: be putting. I don't keep my money in in in
Speaker 1: in fear currencies. I only keep my money in fear
Speaker 1: currencies to the amount that I want to be spending
Speaker 1: over the next few years, um, you know, because it's
Speaker 1: useful for spending. And I've seen many people I've been
Speaker 1: you know, I spoke at the very first bitcoin conference
Speaker 1: when it was about forty people in a room through
Speaker 1: today and I know people that were there in that
Speaker 1: room in two thousand and eleven. Um, I've seen my
Speaker 1: bitcoin crash from thirty dollars to three dollars, from one thousand,
Speaker 1: two hundred fifty dollars to two hundred fifty dollars, from
Speaker 1: twenty thousand dollars to three thousand dollars. I expected to
Speaker 1: crash from a hundred thousand dollars to thirty dollars to UM.
Speaker 1: But I saw people in that room that still are
Speaker 1: not wealthy. UM. That we're there right from the beginning
Speaker 1: because they try to manage their financial affairs with bitcoin,
Speaker 1: and so they always had to sell it to meet
Speaker 1: living expenses. And I saw so many people that have
Speaker 1: been done that, UM. And you know it's to me,
Speaker 1: as sir, so it's you know, it's it's it's a
Speaker 1: challenging currency the day or if bitcoin ever prices things
Speaker 1: in bitcoin, then fine, you can manage your financial affairs.
Speaker 1: But I don't. I still think that fear is still
Speaker 1: going to be you know, we're not going to start
Speaker 1: thinking in terms of my milk costs, not point not one,
Speaker 1: three to five bitcoin. Our brains cannot compute that. UM.
Speaker 1: You know, we're and global as well, because there's so
Speaker 1: many differentials around the world, so I think fear currencies
Speaker 1: will be there. We just have to accept that the
Speaker 1: money that you hold in FEAT is money that you
Speaker 1: can't own, you can't spend unless you get permission, and
Speaker 1: you do things the way whoever the powers of the
Speaker 1: say you do it that way, and it won't maintain
Speaker 1: its value. So I'm I'm fine with my fiat currency.
Speaker 1: I know that if I put it in a bank,
Speaker 1: the bank's legal owner of that money. I'm lucky if
Speaker 1: they give it back to me UM. I know that
Speaker 1: if I try and spend it, I'm going to have
Speaker 1: to send them loads and loads of documents and make
Speaker 1: sure that I only spend it on something that they
Speaker 1: think it's okay to spend on UM. And the same
Speaker 1: with the Central Bank digital currency UM. And I know
Speaker 1: that it's going to be worth less in the future,
Speaker 1: and I'm okay with that because it's useful for spending
Speaker 1: short term, but I'm definitely not going to keep my
Speaker 1: savings in that. And I'm not going to be surprised
Speaker 1: when I download the Central Bank digital currency that's going
Speaker 1: to be connected to my passport and if I try
Speaker 1: to get on a plane. If I haven't had the
Speaker 1: right vaccine, They're probably not. They're probably going to switch
Speaker 1: off that wallet. And I'm also not going to be
Speaker 1: surprised if me and you are on a zoom call
Speaker 1: and this is being routed via a server in China
Speaker 1: that the Chinese Central Bank, the Federal Reserve, and the
Speaker 1: Bank of England. I'm in the Island Man, which shares
Speaker 1: the Bank of England. Um, They're all gonna want to
Speaker 1: automate their tax collection, and then I'm going to have
Speaker 1: to go to three different central banks and try and
Speaker 1: prove to them that I paid my tax here, therefore
Speaker 1: I shouldn't pay my tax here. Um. And if I
Speaker 1: don't get that settled, I also know that my passport
Speaker 1: is going to be switched off until I settle it.
Speaker 1: I just know that that's where the world is going.
Speaker 1: So I'll only hold an amount of money that serves
Speaker 1: that utility. The rest of it, I'm looking to hold
Speaker 1: it in money that I can own, money that I
Speaker 1: can spend, and money that I know is not going
Speaker 1: to be devalued over time. Wow, you are you paint
Speaker 1: a very grim future, um, which I wish I would
Speaker 1: like to challenge you on. But unfortunately, um, it's just
Speaker 1: where things are going. And people won't be affected by
Speaker 1: this because people are living month to month and as
Speaker 1: long as people are living months to my on debt,
Speaker 1: they don't get affected. You know. If you if you've
Speaker 1: got they will be affected in in as as you said,
Speaker 1: their liberty, privacy, freedom right. But it kind of only
Speaker 1: those those rules only really start to kick in once
Speaker 1: you've got a balance, um, you know, and most people
Speaker 1: don't have a balance. They're negative. And so if I
Speaker 1: try and spend ten dollars, they're not gonna that's gonna
Speaker 1: go fast. It's just going to be moved. Um if
Speaker 1: I try, and if I try and move a hundred
Speaker 1: thousand dollars, you're going to have to answer a lot
Speaker 1: of questions. Um. You know. So this this really is
Speaker 1: um And that's why they're petrified of the saving based economy.
Speaker 1: It's why they're in America. They may gold illegal because
Speaker 1: they don't want you to hold. They don't want us
Speaker 1: to save. They want you to be in debt. The
Speaker 1: economy relies upon you being in debt, and the more
Speaker 1: and more that you can service your loans, the more
Speaker 1: the banks are happy um. They don't want you to
Speaker 1: repay your loans. They just want you to pay interest forever.
Speaker 1: Repaying the loan means that they have to go out
Speaker 1: and find another loan and deploy the cap until they
Speaker 1: just want you to cover their interest. And they want
Speaker 1: you to have just enough money so that you can
Speaker 1: cover that loan. They want you to go to university
Speaker 1: so that you take on that student debt, and then
Speaker 1: they want you to start getting into real estate so
Speaker 1: that you start rolling over that debt um. And this
Speaker 1: is how the you know, the system is and it's
Speaker 1: a it's a it's just being rolled over and rolled over.
Speaker 1: On the plus side, this is one of the most
Speaker 1: exciting times in financial history. There's so much innovation happening.
Speaker 1: You know, it doesn't have to be a bleak It
Speaker 1: only has to be a bleak outcome if you're not
Speaker 1: getting involved in what's happening. And that's why you know,
Speaker 1: education like what you're doing and teaching people all these
Speaker 1: new opportunities and alternatives. On the flip side, you know,
Speaker 1: it's it's like I could feel a little bit guilty
Speaker 1: because I've got deep empathy for people's personal financial situations.
Speaker 1: At the moment. I've been there, I've been in debt.
Speaker 1: I know what it's like, you know, to not be
Speaker 1: able to get on the other side of the rat race. Um.
Speaker 1: You know, when I first started my business, I was
Speaker 1: a hundred grand in the hole, and I know the
Speaker 1: types of financial anxiety people have. Um. You know, when
Speaker 1: you you you you're just rolling over your debt. It's
Speaker 1: not a nice situation. Um. But on the flip side,
Speaker 1: you know, this is one of the most largest wealth
Speaker 1: distributions that I think we're going to see. And you
Speaker 1: know what's good about it, what's interesting about it is
Speaker 1: you have the choice to be on the other side
Speaker 1: of that as well, because it's not just a game
Speaker 1: for those that are connected to quantitative using money through
Speaker 1: central banks. It's not just a game of chrony capitalism anymore,
Speaker 1: where the investment banks get access to the cheap money
Speaker 1: and you pay the high interest rate. You know, this
Speaker 1: alternative financial system is being built, and there's lots of
Speaker 1: scams and problems involved in it, but anyone can be
Speaker 1: involved in it, so you know that that opportunity exists
Speaker 1: for everybody. So I know, I know we're running along,
Speaker 1: but hopefully you have a little bit more time because
Speaker 1: I'd like to I just ask you about that. So
Speaker 1: you said that, you know, although things seem bleak, at
Speaker 1: the same time, they're full of opportunities. And so people
Speaker 1: who maybe on the other side of that, hoping to
Speaker 1: get away from that paycheck to paycheck or behind the
Speaker 1: eight box kind of thing, have opportunities. So could you
Speaker 1: tell us what that opportunity is? How would somebody who's
Speaker 1: afraid of this but wants to have that better life
Speaker 1: you're talking about, what kind of thing should they be
Speaker 1: looking at, or doing or thinking about to to make
Speaker 1: that jump over? Sure, Well, the first thing is to
Speaker 1: actually make a decision to take control of your financial future.
Speaker 1: That's the first thing. You know, that's a psychology game.
Speaker 1: That's a you understanding what's been getting in the way
Speaker 1: of you achieving that. To date, there is systemic things.
Speaker 1: You know, the system wants you to be in that way,
Speaker 1: but you've got to break that cycle. Um, once you've
Speaker 1: made that decision, you know, take all the debt that
Speaker 1: you've got, put it on a piece of paper, understand
Speaker 1: what it takes in order to get over that. That's
Speaker 1: what I did when I was deep in the whole
Speaker 1: You know and put bright all that down, understand what
Speaker 1: your situation is right now, and then you just have
Speaker 1: to make a decision that I understand. You know, if
Speaker 1: whatever your career is, whatever your opportunity is, whether you're
Speaker 1: a business person, whether you're working for a company, whatever
Speaker 1: you decide to do, you have to make a decision
Speaker 1: from here on in to spend less than you earn
Speaker 1: and invest in difference. UM. And that's just the reality
Speaker 1: that that's you know, if you can get over that,
Speaker 1: then you just got to think about, well what can
Speaker 1: I invest in? UM? And that's a you know, that's
Speaker 1: an education game. UM. One of the things I'm excited
Speaker 1: about is just to answer that very same question. UM,
Speaker 1: I'm actually going to be taking a million dollars in
Speaker 1: my personal savings. Imagine that I had nothing, UM, And
Speaker 1: it doesn't matter. This could be a hundred dollars, this
Speaker 1: could be a thousand dollars, this could be ten million million.
Speaker 1: The numbers scale because the products are available at any level, UM.
Speaker 1: And I'll be showing them how I'll be investing in
Speaker 1: during the great depression of releasing a video series of
Speaker 1: that UM of exactly what I'll do, And that would
Speaker 1: be preparing for inflation, deflation, economic growth, economic decline, um,
Speaker 1: and a plan be that the entire financial system collapses.
Speaker 1: You've got to be prepared for everything because this is
Speaker 1: a politics and you don't know what the politicians are
Speaker 1: gonna throwout you next, Definitely, definitely, it's not the time
Speaker 1: to the old way of just and just sit there.
Speaker 1: In twenty years are gonna be okay, right, and now
Speaker 1: is the time to be what I call tactically maneuvering
Speaker 1: around this. Uh that's a great thing. Um, Well, if
Speaker 1: I can one more question. Um, So you talk about, uh,
Speaker 1: there's kind of two opposing things. So one is that
Speaker 1: we're moving to this totalitarrorism, you know environment where the
Speaker 1: banks have these digital currencies that can they control and
Speaker 1: surveill every area of your life, and they want that,
Speaker 1: they don't want to give that up. But at the
Speaker 1: same time, you talk about there being competing currencies which
Speaker 1: give us that ability to get out of that and
Speaker 1: and have this free life. Of course, being a free
Speaker 1: market guy, I believe that competition always creates better products,
Speaker 1: better services, better prices, and so we want that, but
Speaker 1: the powers that be don't want that. So there's like
Speaker 1: gonna be this battle between like total control China, the
Speaker 1: US whatever are gonna want and then maybe these smaller
Speaker 1: kind of competing things. Um. Do you think those the
Speaker 1: competing markets eventually win the totalitarian that the FED and
Speaker 1: the China banks lose. How does that play out? Now?
Speaker 1: I actually believe in ying and yang, and I think
Speaker 1: we're going to have you were going to have these
Speaker 1: different systems. So UM. You know the reason I'm so
Speaker 1: excited about Bitcoin that has got this far, and it's
Speaker 1: a miracle that has got this far. It was never
Speaker 1: many succeeds. I never imagined it would get this far,
Speaker 1: but it did. Um. And thank God that we've got it. Um.
Speaker 1: You know, and right now it's virtually impossible for any
Speaker 1: government to take down in terms of some of the
Speaker 1: key risk factors. Yes, they can make it illegal in
Speaker 1: one country, but then that would be an opportunity for
Speaker 1: another country. UM. And I think that we can see that. Um.
Speaker 1: But yeah, I do believe in the yin and yang.
Speaker 1: I don't think it's one system wins because Bitcoin could
Speaker 1: end up being in the hands of a very few people,
Speaker 1: and it currently is not in hu many of the
Speaker 1: people's hands, and it could end up being you know,
Speaker 1: a ginormous wealth creation in the next round of bitcoin
Speaker 1: billionaire has become the next Jp Morgan's and all sorts
Speaker 1: of stuff like that, um, you know. But there is
Speaker 1: a there is a difference because it is built upon
Speaker 1: sound monetary principles, but it's not going to it may
Speaker 1: not work with the redistribution of effect. I'm hoping that
Speaker 1: more and more people get on board at this stage
Speaker 1: most you know. The good thing about bitcoin is the
Speaker 1: majority of the world still think, you know, when we
Speaker 1: first started, no one had heard of it, but now
Speaker 1: everyone's heard of it. But the majority of the world
Speaker 1: still think it's a Ponzi scheme, a currency for drug dealers,
Speaker 1: or a scam um. And that's what creates the asymmetric
Speaker 1: opportunity because each year, more and more people realize it's
Speaker 1: not a scam, it's not a currency just for drug dealers, um,
Speaker 1: and it's not a it's not a Ponzi scheme. And
Speaker 1: every year, for the last you know, since I've been involved,
Speaker 1: more and more people realize that, and so the market
Speaker 1: cap goes up, and the utility goes up, and more
Speaker 1: and more people try and buy it at a higher price.
Speaker 1: Ten of the last twelve is the highest performing asset class. Yeah.
Speaker 1: And so you know, the opportunity to be involved in
Speaker 1: money that you can own, money that you can spend,
Speaker 1: and money that can't whether supply can't be changed, is
Speaker 1: something that anyone can actually take on. And people will
Speaker 1: get involved in that at different stages, depending on their
Speaker 1: cognitive dissidence or or when they decide that it's right
Speaker 1: for them. Um. And I do believe that bitcoin is
Speaker 1: actually regulates the regulator, and by that I mean that
Speaker 1: we've always had this problem of you can you know,
Speaker 1: absolute power corrupts absolutely um. And you give regulators power,
Speaker 1: and then you have croning you know, capitalism, and and
Speaker 1: you know a corruption within the regulatory environment, and you
Speaker 1: have all sorts of check and controls. So another regulator
Speaker 1: comes along to regulate that regulator, and then that one
Speaker 1: becomes corrupt, and you have all these regulators that sit
Speaker 1: on top of regulators. Um. But when you have a
Speaker 1: monetary system that allows you to own it, allows you
Speaker 1: to spend it, and allows you to have a fixed supply,
Speaker 1: my hope is that we get much much better fear currencies,
Speaker 1: because I really don't want the banking system collapse. That
Speaker 1: hurts my mom, that hurts my grandma, that hurts my sister,
Speaker 1: that hurts my brother, and that hurts everyone that I
Speaker 1: know that's not prepared for this. And almost everyone I
Speaker 1: know is not prepared for this. You know, we're a tiny,
Speaker 1: tiny community of monitory reformers or bitcoiners or all these
Speaker 1: people looking at this start. I know that I'm in
Speaker 1: a position where I'm going to be okay no matter
Speaker 1: what happens. That's how I've set myself up. But most
Speaker 1: people won't. So I don't want the banking system to
Speaker 1: collapse in order for my bitcoin to do well. UM,
Speaker 1: I would like, you know, I would like the fear
Speaker 1: to get a lot better. Um. And so bitcoin performing
Speaker 1: this task of regulating the regulator, whereby if people have
Speaker 1: a choice to exit and that can't be stopped, therefore
Speaker 1: they have to just make a better system. And that's
Speaker 1: where I hope. That's what I think the good outcome
Speaker 1: of all of this is because fear currency is still
Speaker 1: very useful. We use it for a reason because it's useful,
Speaker 1: and we don't want to go back to a barter system.
Speaker 1: You know, it's a convenient, it's a human if you
Speaker 1: took money out of the world, humans would reinvent it
Speaker 1: every time because it's more convenient than not having money
Speaker 1: and having to trade. Um. So I do think that
Speaker 1: there is a good outcome that comes that comes from
Speaker 1: all of this, But you know there's a there's a lot.
Speaker 1: I just wish it we didn't live in such a
Speaker 1: speculative environment where you, as a person, you have to
Speaker 1: learn how to speculate, because if you're not learning how
Speaker 1: to speculate, someone else is speculating for you. Just Leaving
Speaker 1: your money in a bank is a bet on the
Speaker 1: credit risk of that bank and the credit rating of
Speaker 1: the f d i C and their ability to do it.
Speaker 1: Putting your money in real estate is a speculation the
Speaker 1: banks will continue to increase the mortgage supply that pushings
Speaker 1: our real estate, that continues to push our prices. Investing
Speaker 1: in a four oh one K is a bet that
Speaker 1: the financial system has your best interest at heart. Um.
Speaker 1: And that's you know, all of these different things. So
Speaker 1: we only have one choice. I've you learn how to
Speaker 1: speculate in the speculative economy and prepare for different outcomes,
Speaker 1: or you outsource your speculations to someone else. And I'm sure.
Speaker 1: I mean I can ensure you that they don't necessarily
Speaker 1: have your best interests at heart. Yeah. Wow, that's uh,
Speaker 1: that's such a great point. And and uh, I think
Speaker 1: we'll just end it with that. Um. I think it
Speaker 1: all goes back to the money system. It's not a
Speaker 1: good store of value, but you need to be able
Speaker 1: to park your wealth, as Simon just said. So, um man,
Speaker 1: that was that was great and I know we went
Speaker 1: over so I appreciate you taking that extra time for us. Um.
Speaker 1: Such a good conversation. Um, Simon, I know you talk
Speaker 1: a lot about on your own YouTube channel. UM. So
Speaker 1: you do have a YouTube channel. I'm going to make
Speaker 1: sure to link to that in the show notes. Where
Speaker 1: else should somebody go to keep up with you and
Speaker 1: follow what you're doing? Yeah, so I mainly live in
Speaker 1: three different places. Um, Simon Dixon is my YouTube channel,
Speaker 1: which is where I release content as the economy unfolds,
Speaker 1: and I'll be releasing that video series on how I'll
Speaker 1: be investing million dollars in my savings in the Great
Speaker 1: Depression in twenty twenty. Um on Twitter at Simon Dixon Twitter, um,
Speaker 1: and UM. I also my company Banks to the Future
Speaker 1: dot Com is for those that want to invest in
Speaker 1: the equity and stocks of financial technology companies building the
Speaker 1: future of finance. Yeah. Great, well, such a great conversation,
Speaker 1: simon Um. It is definitely interesting times that we're in
Speaker 1: and and exciting if you're in the right position and
Speaker 1: observing like kind of we are. So anyway, thanks so
Speaker 1: much for you guys coming and talking to us today. Yeah, pleasure,
Speaker 1: and really appreciate what you're doing. Educating people in plain,
Speaker 1: simple language. I think that's so important for people to
Speaker 1: learn all this stuff. All right, we'll see you later.
Speaker 1: Bye bye.