WEBVTT - Monetary Reform To Effect Your FREEDOM | Simon Dixon 0:00:13.840 --> 0:00:17.320 Everyone, Welcome to another episode of the Market Disruptors Show. Today, 0:00:17.320 --> 0:00:19.959 I'm sitting down with Simon Dixon. He is the CEO 0:00:20.200 --> 0:00:22.759 and co founder of Bank to the Future. He's also 0:00:22.960 --> 0:00:25.560 also the author of the book also titled Bank to 0:00:25.600 --> 0:00:29.480 the Future, Protect Your Future Before Governments Go Bust, and 0:00:29.640 --> 0:00:31.880 he talks a lot about the same type of content 0:00:31.920 --> 0:00:34.120 that I typically talk about. But I have a lot 0:00:34.159 --> 0:00:35.760 of questions for him, So I'm excited to sit down 0:00:35.760 --> 0:00:38.880 with Simon. Simon, thanks so much for joining us. Yeah, 0:00:38.880 --> 0:00:41.120 thanks for having me. I've been consuming some of your content, 0:00:41.200 --> 0:00:42.640 so it seems like there's a lot of synergy. It 0:00:42.720 --> 0:00:45.360 is great to be here. Yeah, thanks, thank you so much. 0:00:45.400 --> 0:00:47.640 So um, Yeah, I've been, you know, following you for 0:00:47.760 --> 0:00:50.360 quite a while, watching your content, and like I said, yeah, 0:00:50.360 --> 0:00:52.080 we definitely do line up on a lot of stuff. 0:00:52.080 --> 0:00:54.080 But for those that don't really know who you are, 0:00:54.160 --> 0:00:56.480 just give us a little background on on what you've 0:00:56.480 --> 0:00:59.000 been doing and what you're up to. Yeah, so I've 0:00:59.000 --> 0:01:02.320 been I'm working around the subject of monetary reform for 0:01:02.320 --> 0:01:06.560 about twenty years. I started as a economist at university, 0:01:06.800 --> 0:01:09.959 did the masters there. Then I worked in investment banking, 0:01:10.120 --> 0:01:12.560 so I worked as a stockbroker. Then I was a 0:01:12.560 --> 0:01:14.840 market maker on the London Sockets Change and then an 0:01:14.880 --> 0:01:19.600 investment banker helping companies go public. In two thousand and six, 0:01:19.680 --> 0:01:22.080 decided to throw in the corporate towel and return to 0:01:22.680 --> 0:01:27.520 economics and started giving lots of talks and content around 0:01:28.080 --> 0:01:31.920 unsustainable banking and money reform. But no one really cared. 0:01:32.000 --> 0:01:34.280 So then this big thing happened in two thousand and 0:01:34.280 --> 0:01:37.600 eight called the Financial crisis UM, and all of a 0:01:37.640 --> 0:01:41.480 sudden people were interested. So that's when I came across 0:01:41.480 --> 0:01:44.080 somebody that I was writing my book Bank to the 0:01:44.120 --> 0:01:48.360 Future on how to drive how to drive more sustainability 0:01:48.360 --> 0:01:51.720 in the banking system UM, And I was introduced to 0:01:51.840 --> 0:01:55.000 one of the very first bitcoin developers that had moved 0:01:55.000 --> 0:01:58.280 out of this house Soldiers house, moved to a squat 0:01:58.320 --> 0:02:01.120 in London, uh and UH. I went there and then 0:02:01.160 --> 0:02:03.320 spoke at the very first bitcoin conference in the world 0:02:04.080 --> 0:02:07.000 UM and just been involved in investing in the industry 0:02:07.040 --> 0:02:09.840 ever since, and founded the company Bank to the Future 0:02:09.840 --> 0:02:14.160 dot com to help people invest in the industry. Yeah. So, UM, 0:02:14.240 --> 0:02:17.040 you know you talked about in two thousand six kind 0:02:17.040 --> 0:02:19.160 of leaving to go back and start talking about this 0:02:19.360 --> 0:02:24.120 unsustainable UM banking system that we have, unsustainable money system 0:02:24.160 --> 0:02:26.760 that we have. And so that's a long time. I 0:02:26.760 --> 0:02:30.200 mean that's fourteen years now you've been talking about that. UM. 0:02:30.240 --> 0:02:33.440 I know, I got uh kind of educated into the 0:02:33.600 --> 0:02:36.800 Golden sound money by Peter Schiff, and he's been talking 0:02:36.800 --> 0:02:39.520 about the same thing for a really long time. And 0:02:39.560 --> 0:02:43.560 it almost seems like, um, it's inevitable, like we see 0:02:43.600 --> 0:02:47.440 it's coming. But when right, I've been following Peter Schiff 0:02:47.480 --> 0:02:48.960 for a long time. You've been talking about this for 0:02:49.000 --> 0:02:53.080 fourteen years. UM, I understand the win is difficult, but 0:02:53.160 --> 0:02:55.160 it's like as a you know, the broken clock is 0:02:55.240 --> 0:03:00.000 right twice a day or whatever, like like it's unsustainable 0:03:00.080 --> 0:03:03.200 and we're moving towards this inevitable end, but like how 0:03:03.240 --> 0:03:06.320 far can they move that? Do you think about that? Yeah? 0:03:06.360 --> 0:03:08.920 I think about that a lot. And really, if you 0:03:08.960 --> 0:03:13.040 look at what we what our financial system works is UM, 0:03:13.040 --> 0:03:16.680 I call it the world's largest regulator points in scheme UM. 0:03:16.800 --> 0:03:20.960 And really we have these different cycles where our economy 0:03:21.040 --> 0:03:24.080 has to have debt to survive because money is debt, 0:03:24.560 --> 0:03:27.280 and so without without debt, you can't have money in 0:03:27.320 --> 0:03:30.840 the existing system, and so you have these like ten 0:03:30.919 --> 0:03:35.480 year debt cycles UM that lead to some kind of 0:03:35.520 --> 0:03:39.600 systemic risk event. So we had the credit crisis in 0:03:39.720 --> 0:03:43.360 terms of mortgage loans and subpride loans. But we keep 0:03:43.400 --> 0:03:46.520 getting these different events and then recycling the debt, so 0:03:46.600 --> 0:03:48.440 we have to find a new market for debt at 0:03:48.480 --> 0:03:54.080 every cycle. UM. And I think that the government and 0:03:54.200 --> 0:03:57.880 the central banks are shown that they're willing to kick 0:03:57.920 --> 0:04:00.080 the can down the road for as long as they 0:04:00.120 --> 0:04:03.000 can because they don't believe in markets anymore UM. So 0:04:03.040 --> 0:04:05.080 they believe that the stock markets should never crash, it 0:04:05.080 --> 0:04:07.680 should always go up, and every time it does crash, 0:04:07.760 --> 0:04:10.600 that they need to fill that gap UM. And they 0:04:10.640 --> 0:04:14.040 do that by either encouraging consumers to take on more debt, 0:04:14.480 --> 0:04:17.800 companies to take on more debt, by a central bank 0:04:18.200 --> 0:04:21.600 buying their bonds and then then pushing up prices UM, 0:04:21.880 --> 0:04:25.360 or government's taken on that debt, or central banks taking 0:04:25.360 --> 0:04:28.160 on that debt through q E UM. But I think 0:04:28.200 --> 0:04:31.960 that we're going to hit rather than a systemic crash 0:04:32.000 --> 0:04:34.840 of the whole system UM. I think we're going to 0:04:34.920 --> 0:04:38.520 actually hit a monetary reform similar to what we saw 0:04:39.160 --> 0:04:44.240 in when we had Breton Woods and in one when 0:04:44.279 --> 0:04:48.240 they went off the gold standard UM, and I'm forecasting 0:04:48.240 --> 0:04:51.560 that we will see a monetary renegotiation before we'll see 0:04:51.560 --> 0:04:54.760 a systemic craps of the entire system. And I think 0:04:54.760 --> 0:04:56.760 they've got a few more tricks up their sleeves to 0:04:57.560 --> 0:05:00.880 kind of roll it up a little bit further. And 0:05:00.960 --> 0:05:05.440 the implications rather than allowing the financial system to collapse, UM, 0:05:05.640 --> 0:05:08.560 is that a new money and a new monetary system 0:05:08.600 --> 0:05:13.480 will be created that will really affect your personal liberties, privacy, privacies, 0:05:13.480 --> 0:05:16.640 and freedoms. UM, but they will be able to make 0:05:16.680 --> 0:05:20.719 it sustainable. And I think that I've got a few 0:05:20.720 --> 0:05:24.680 ideas and how they'll do that. Wow. I think that's 0:05:24.680 --> 0:05:26.560 a great topic and we are going to dig into that. 0:05:26.640 --> 0:05:30.000 But before we do, UM, you talked about how our 0:05:30.040 --> 0:05:33.279 system is a debt based system and our money is 0:05:33.360 --> 0:05:37.600 really debt, right, and so UM, our whole system is 0:05:37.640 --> 0:05:39.520 built up debt. So if we don't continue to increase 0:05:39.560 --> 0:05:42.920 the debt, then it falls apart. UM. But it's our 0:05:42.960 --> 0:05:45.640 money as a debt based system compared to what what 0:05:45.720 --> 0:05:50.159 other money system is there? Well, there are different forms 0:05:50.200 --> 0:05:52.520 of money in the economy. So I created a video 0:05:52.560 --> 0:05:55.640 once called six Forms of money one of them. UM. 0:05:55.680 --> 0:05:57.760 You know, the government do actually create a non debt 0:05:57.760 --> 0:06:01.240 based money is called cashing coins UM. So the notes 0:06:01.279 --> 0:06:04.760 and cash in your pocket is not created as debt UM. 0:06:04.800 --> 0:06:07.960 It's simply created and sold to a bank when they 0:06:07.960 --> 0:06:11.840 need to. So if essentially, when you print a note 0:06:11.920 --> 0:06:14.760 across about three cents for the to be created by 0:06:14.760 --> 0:06:17.600 the royal mint or whoever it is in which country 0:06:17.600 --> 0:06:21.039 you're in, UM and if it was say a ten 0:06:21.080 --> 0:06:24.080 dollar notes, there'll be nine dollar ninety seven margin, and 0:06:24.160 --> 0:06:27.560 it's sold to a bank UM and that profit of 0:06:27.640 --> 0:06:30.400 nine dollars ninety seven reduces the amount of tacks that 0:06:30.480 --> 0:06:33.839 one needs to pay. It's called scenerage UM. And about 0:06:33.880 --> 0:06:36.559 three percent of the money supply is created debt free 0:06:36.680 --> 0:06:41.760 by by governments UM and UH it's added to treasuries 0:06:41.800 --> 0:06:44.560 balance sheeting as a form of income. But the rest 0:06:44.640 --> 0:06:47.960 of the money of it was outsourced to the private 0:06:47.960 --> 0:06:51.640 banking sector UM and so the private banking sector they 0:06:51.720 --> 0:06:55.680 create a digital currency every time they issue alone, and 0:06:55.720 --> 0:06:59.640 it's a digital representation of the government's debt free currency. 0:07:00.240 --> 0:07:03.440 So the cash and coins is a debt free currency UM. 0:07:03.480 --> 0:07:06.400 And anything in your online banking is all a digital 0:07:06.440 --> 0:07:09.800 currency that's created by the private banking sector and backed 0:07:09.840 --> 0:07:13.800 by debt. If you rewind into history, you had things 0:07:13.840 --> 0:07:17.840 like in the American Civil War, Abraham Lincoln actually created 0:07:17.840 --> 0:07:21.320 a green back, which was a debt free money supply, um, 0:07:21.360 --> 0:07:25.160 and it funded the American Civil War. UM. And so 0:07:25.400 --> 0:07:29.360 there are throughout history there's never been, you know, this 0:07:29.480 --> 0:07:33.239 absolute conclusion that money has to be created as debt. 0:07:33.360 --> 0:07:35.920 And in fact, if anyone was to engineer a financial 0:07:35.920 --> 0:07:39.240 system from scratch and nobody would come up with that solution, 0:07:40.120 --> 0:07:45.480 it actually was just through decades and decades of reforms, 0:07:46.680 --> 0:07:49.640 it actually turned into the financial system we have today. 0:07:50.000 --> 0:07:52.960 How many people confuse this, They think that debts the problem. 0:07:53.320 --> 0:07:56.280 Debt in itself is not the problem. The problem is 0:07:56.480 --> 0:08:00.280 creating money as debt, which is the problem. And once 0:08:00.320 --> 0:08:02.600 you've got a money supply, you can use that as 0:08:02.640 --> 0:08:05.920 a very you know, legitimate instrument too for people that 0:08:06.000 --> 0:08:08.560 want to put together borrowers and savers like appear to 0:08:08.600 --> 0:08:11.080 be a lending or collasterized loans like we see in 0:08:11.080 --> 0:08:16.080 the crypto market. UM. But when you give someone simultaneously 0:08:16.520 --> 0:08:19.880 the ability to create new money every time the issue alone, 0:08:20.480 --> 0:08:22.920 you end up in a Ponzi scheme where debt is 0:08:22.960 --> 0:08:26.680 required in order to have an economy. Um. So there's 0:08:26.680 --> 0:08:31.240 these different schools of thoughts around monetary systems, you know. Um, 0:08:31.600 --> 0:08:33.880 some people believe that you need to regulate how much 0:08:33.960 --> 0:08:36.920 did require and see a bank can create through Austrian 0:08:36.920 --> 0:08:39.840 economics and a gold standard. Um. I go as a 0:08:39.920 --> 0:08:42.240 step further that, I think you shouldn't allow banks to 0:08:42.240 --> 0:08:45.640 create money rather than using gold to regulate how much 0:08:45.640 --> 0:08:49.040 money they create. Yeah, so if we if we kind 0:08:49.040 --> 0:08:51.480 of go backwards, and as you said, this is really 0:08:51.520 --> 0:08:53.200 evolved for a long time, but if we look at 0:08:53.240 --> 0:08:56.480 maybe some big moment, you know, monumental times throughout history. 0:08:56.960 --> 0:08:59.280 Really we had, as you mentioned in forty four, like 0:08:59.280 --> 0:09:01.200 the Bretton would have freements. So the whole world was 0:09:01.200 --> 0:09:04.480 on a gold system, and so you had to have 0:09:04.520 --> 0:09:07.280 a certain amount of gold a reserve for the amount 0:09:07.280 --> 0:09:10.960 of money that you created. And then, UM, I guess 0:09:11.000 --> 0:09:13.160 even at that point it was like it was like leverage, 0:09:13.280 --> 0:09:16.439 but at least it was somewhat backed. It wasn't debt back. 0:09:17.200 --> 0:09:19.719 I mean, is that correct? And then in v we 0:09:19.800 --> 0:09:22.120 got off the gold center and it it became a debt back. 0:09:22.679 --> 0:09:24.880 Is that how you see it or is that so? Yeah, 0:09:24.960 --> 0:09:27.439 there was. There was different forms of gold standard, and 0:09:27.480 --> 0:09:30.680 it evolved over time, but the most recent one was 0:09:31.520 --> 0:09:33.880 back by gold um and it was used as a 0:09:33.960 --> 0:09:37.560 mechanism in order to keep central banks and the private 0:09:37.559 --> 0:09:40.960 credit creation system in check because you'd end up losing 0:09:41.000 --> 0:09:46.079 all your gold if you if you had bad monetary policy. Um. 0:09:46.360 --> 0:09:49.480 Then that was. But the problem with the gold standards 0:09:49.800 --> 0:09:52.640 is it is inevitable, predictable, and guaranteed to be re 0:09:53.120 --> 0:09:57.360 renicked on because if you actually you know, many many 0:09:57.400 --> 0:10:00.840 economists blamed the Great Depression on the old standards because 0:10:00.880 --> 0:10:03.280 they couldn't create the amount of money that they wanted 0:10:03.320 --> 0:10:06.080 to create. Um. And there's some truth in that. But 0:10:06.120 --> 0:10:09.559 there is another option, which is actually creating money debt 0:10:09.559 --> 0:10:13.960 free rather than debt back and competing with other forms 0:10:14.000 --> 0:10:18.600 of free money, um, you know, more free market money. Um. 0:10:18.640 --> 0:10:22.160 But yeah, And then in one with the Nixon Shock 0:10:22.880 --> 0:10:27.080 that was executed in three we essentially moved to a 0:10:27.280 --> 0:10:31.000 US dollar debt back standard and all currencies were traded 0:10:31.040 --> 0:10:34.360 against each other. So the financial system that that that 0:10:34.360 --> 0:10:38.079 that we have today isn't actually that old. And if 0:10:38.080 --> 0:10:41.000 you look back at monetary history with the exception of 0:10:41.040 --> 0:10:44.080 the British pound, which was a world reserve currency for 0:10:44.080 --> 0:10:48.480 about three hundred years. On average, no currency has survived 0:10:49.240 --> 0:10:51.360 more than fifty years, and in fact an average of 0:10:51.640 --> 0:10:55.479 twenty seven years. So we are due in monetary renegotiation 0:10:55.559 --> 0:10:58.760 and throughout the five thousand years of monetary history since 0:10:58.800 --> 0:11:02.960 gold has been around. Um, we always get them. Yeah, yeah, 0:11:03.000 --> 0:11:05.360 they say the pound is the most successful currency in 0:11:05.400 --> 0:11:07.640 the world because it's been around the longest, But in 0:11:07.760 --> 0:11:09.880 terms of holding value, it sure hasn't done a very 0:11:09.880 --> 0:11:14.080 good job, has it. No currency has ever survived and 0:11:14.120 --> 0:11:17.679 never holds value, So there's there's no there's none of 0:11:17.720 --> 0:11:20.760 them were a good store of value. They're they're actually 0:11:20.800 --> 0:11:23.280 designed not to hold value, right because they're built with 0:11:23.320 --> 0:11:26.160 this inflation mechanism into it. So it's it's meant to 0:11:26.320 --> 0:11:30.520 lose value over time, exactly. And if you are if 0:11:30.559 --> 0:11:33.840 you hold like the US government almost thirty trillion dollars 0:11:33.840 --> 0:11:36.280 of debt, then you want the value of the currency 0:11:36.320 --> 0:11:39.120 to go down, um, so that you don't have to 0:11:39.160 --> 0:11:41.760 repay a larger amount of debt each month. You know 0:11:41.800 --> 0:11:45.640 that that's that's designed into the system, right, So we 0:11:45.760 --> 0:11:48.439 have this debt based system and I think since nineteen 0:11:48.559 --> 0:11:50.680 seventy one or seventy three when we got off the 0:11:50.679 --> 0:11:54.280 gold standard, we've created something like whatever, three trillion dollars 0:11:54.679 --> 0:11:56.480 out of debt, you know, out of debt or whatever. 0:11:56.520 --> 0:11:58.560 And it seems like, as you just said, about every 0:11:58.559 --> 0:12:01.120 ten years, we have this kind of terry shock. And 0:12:01.160 --> 0:12:04.280 it's almost like this, this this balloon tries to deflate 0:12:04.400 --> 0:12:06.000 and then they have to pump it back up, and 0:12:06.000 --> 0:12:08.200 then tries to deflate and then tries to they pump 0:12:08.200 --> 0:12:09.520 back up. But each time they pump it back up, 0:12:09.559 --> 0:12:13.439 it goes bigger and bigger and bigger. Um. And you 0:12:13.480 --> 0:12:15.960 think that they still have a couple more pumps left, 0:12:15.960 --> 0:12:19.640 a couple more tricks left. Um. I actually think that 0:12:19.679 --> 0:12:22.360 this one within the next three to five years, or 0:12:22.400 --> 0:12:25.040 even in the next year or so. You've got a 0:12:25.120 --> 0:12:27.440 time that with election cycles, because no one will do 0:12:27.480 --> 0:12:29.840 a monetary reform when they're about to be elected. So 0:12:30.200 --> 0:12:32.560 you've got to get through the next election cycle. And 0:12:32.559 --> 0:12:36.760 I'm talking about America because you know, of all currency 0:12:36.760 --> 0:12:39.280 in the world, just dollars and fifty of all transactions 0:12:39.320 --> 0:12:44.079 and dollars, so you know, dollars affects everyone, right, um, 0:12:44.200 --> 0:12:46.240 And so you've got to get past that. And then 0:12:46.280 --> 0:12:51.080 I think we're at a very interesting time in history. UM. 0:12:51.160 --> 0:12:54.720 And in two thousand and eleven, I uploaded the video 0:12:54.800 --> 0:12:58.440 to my YouTube channel called the Great Depression of Twenties UM, 0:12:58.559 --> 0:13:01.880 and it talked about this call of KINGSI and monetaris 0:13:01.880 --> 0:13:06.760 and economics UM and then leading to the systemic risk events. 0:13:06.800 --> 0:13:11.199 And the video said, I didn't know a pandemic was coming, 0:13:11.480 --> 0:13:14.080 but I knew that something was coming because there's always 0:13:14.080 --> 0:13:18.280 a trigger. And and then the differences is that each time, 0:13:19.040 --> 0:13:22.640 I think the appetite of what one needs to do. 0:13:22.720 --> 0:13:24.680 So what tours do we have? We don't have interest 0:13:24.800 --> 0:13:28.360 rates anymore, we have the central banks balance sheet. And 0:13:28.400 --> 0:13:31.840 now they've announced infinite you know UM, and that's working 0:13:31.880 --> 0:13:35.200 to keep investors into the stock market. Now they've announced 0:13:35.280 --> 0:13:40.160 infinite quee UM. But eventually you get some kind of 0:13:40.240 --> 0:13:43.840 you know, systemic risk event. I'm forecasting that it will 0:13:43.880 --> 0:13:47.360 be the end of some of the government subsidies that 0:13:47.480 --> 0:13:51.200 leads to more unemployment, more bankruptcies and some of the 0:13:51.240 --> 0:13:54.880 loans that was just restructured, which are due to if 0:13:55.040 --> 0:14:00.760 the last bit of bailout for US consumers was businesses 0:14:00.760 --> 0:14:05.080 could borrow money um and if they agree to keep 0:14:05.120 --> 0:14:08.360 their their their staff and don't lay any off by 0:14:08.360 --> 0:14:10.920 the end of October, then they don't have to repay 0:14:10.960 --> 0:14:13.640 the loan. So a lot of people are keeping their 0:14:13.679 --> 0:14:16.400 staff on not so that they don't have to repay 0:14:16.440 --> 0:14:18.040 the loan. And then I think it will lead to 0:14:18.080 --> 0:14:22.240 a lot of another spike in unemployment, which will then 0:14:22.280 --> 0:14:27.680 exposed the weakness of the real estate markets when at 0:14:27.680 --> 0:14:30.840 the moment that essentially all mortgages and real estate is 0:14:30.880 --> 0:14:33.840 being paid by the individuals that live in months to 0:14:33.920 --> 0:14:36.720 month because of these government subsidies, and so if some 0:14:36.760 --> 0:14:39.360 of those go and then it exposes some of the 0:14:39.400 --> 0:14:42.920 weaknesses and a coupler systems the banking system and also 0:14:42.960 --> 0:14:46.000 the pension system because the bank sold all their bad 0:14:46.000 --> 0:14:49.640 debt to your pension already during the last financial crisis. 0:14:50.520 --> 0:14:53.800 But the when when we have to rescue those systems. 0:14:54.280 --> 0:14:58.120 The options you have is a bail in, which is 0:14:58.200 --> 0:15:00.880 essentially the bank saying that they would take your deposits 0:15:00.880 --> 0:15:03.520 and use it, and they usually issue some kind of 0:15:03.560 --> 0:15:06.080 stock like they did in Cyprus, where instead of your 0:15:06.120 --> 0:15:09.440 deposit you end up with bank stock um or they 0:15:09.440 --> 0:15:12.200 can do a bailout. But I think with the record 0:15:12.320 --> 0:15:17.080 levels of civil unrest, um and rioting right now, if 0:15:17.080 --> 0:15:19.400 the government proposed to bail out any of the banks 0:15:19.960 --> 0:15:22.160 as a result of this, I don't think they could 0:15:22.200 --> 0:15:24.600 get away with it this time. So what I'm forecasting 0:15:25.400 --> 0:15:28.200 is that they will actually allow the banks to go 0:15:28.320 --> 0:15:31.240 bust this time, but they don't want depositors to lose 0:15:31.280 --> 0:15:33.720 their money. The way they can do that is through 0:15:33.720 --> 0:15:37.480 a central bank digital currency, which every central bank in 0:15:37.520 --> 0:15:40.360 the world has already been working on UM, and that 0:15:40.520 --> 0:15:43.360 central bank digital currency could be Let's say you had 0:15:43.360 --> 0:15:47.520 ten thousand dollars that Chase Bank, and Chase Bank was 0:15:47.520 --> 0:15:50.520 was not bailed out this time, then you could download 0:15:50.520 --> 0:15:52.960 an app and it would obtain ten thousand dollars of 0:15:52.960 --> 0:15:56.480 the central bank digital currency, and that money is debt 0:15:56.600 --> 0:15:59.640 free money. Essentially, you're taking all the over leverage of 0:15:59.680 --> 0:16:02.760 the bank and you're replacing it with debt free money 0:16:02.880 --> 0:16:06.000 issued by the government or the central bank, just like 0:16:06.040 --> 0:16:08.640 they issued the green bags to fund the American Civil War, 0:16:09.040 --> 0:16:12.040 but this time it would be fully digital UM and 0:16:12.160 --> 0:16:14.320 they can put a stimulus package out there. Their next 0:16:14.400 --> 0:16:17.960 round of helicopter money could be download this app we'll 0:16:17.960 --> 0:16:21.400 give you the money, um, and they deleverage the leverage 0:16:21.400 --> 0:16:24.080 in the banking system and replace it with a central 0:16:24.080 --> 0:16:27.200 bank digital currency is what I think their next movers 0:16:27.680 --> 0:16:30.240 and so essentially that central bank taking on all the 0:16:30.280 --> 0:16:34.120 balance sheet of the world um and uh and yeah, 0:16:34.240 --> 0:16:36.640 and and becoming a bank and issuing a p I 0:16:36.720 --> 0:16:39.840 T S allowing financial technology companies to build on top 0:16:39.920 --> 0:16:43.120 of it, um and move into a more pit payer 0:16:43.160 --> 0:16:46.360 financial system. But it will be very, very expensive, as 0:16:46.400 --> 0:16:49.440 I said, in terms of the impact that currency has 0:16:49.480 --> 0:16:53.360 on your freedoms or liberties and your your privacy is 0:16:53.360 --> 0:16:55.760 going to not be a very nice currency in any way, 0:16:55.760 --> 0:16:59.320 shape or form. Yeah, I actually see something very similar 0:16:59.360 --> 0:17:01.240 in that trusting you bring that up. I want to 0:17:01.280 --> 0:17:03.680 talk about that, um, but before we do, just to 0:17:03.720 --> 0:17:07.399 kind of preframe that for the listeners. UM. So, typically 0:17:07.480 --> 0:17:09.240 the way that it's been done is the central banks 0:17:09.240 --> 0:17:12.199 have been creating more debt, and they've been doing that, 0:17:12.359 --> 0:17:15.879 as you said, really through quantitative easing, which means that 0:17:15.920 --> 0:17:18.840 money really goes into the banks and it really just 0:17:18.840 --> 0:17:21.680 goes goes back to more financial assets. It's never really 0:17:21.680 --> 0:17:24.840 been given to the people until just recently with this 0:17:24.880 --> 0:17:28.440 pandemic where they gave a little bit I mean bucks 0:17:28.480 --> 0:17:30.200 to some people if they make under a certain amount 0:17:30.200 --> 0:17:32.840 of money or whatever. Right, Um, But what you're talking 0:17:32.840 --> 0:17:36.000 about is something different where the instead of building out 0:17:36.040 --> 0:17:39.200 the banks and the financial system like they are doing today, 0:17:39.760 --> 0:17:41.840 you're saying they might just say, Ah, screw those guys, 0:17:41.920 --> 0:17:45.560 let's just go and bail out the people directly. Yes, 0:17:45.680 --> 0:17:48.720 So you've got to look at when each each debt 0:17:48.760 --> 0:17:53.240 cycle creates a greater level of debt from consumers, businesses, 0:17:53.240 --> 0:17:56.720 and governments um, and all of that debt needs to 0:17:56.760 --> 0:17:59.119 be repaid plus interest. Well, it doesn't need to be 0:17:59.200 --> 0:18:02.160 repaid because it's a always rolled over UM and as 0:18:02.160 --> 0:18:05.000 long as the credit rating of the US government is okay, 0:18:05.000 --> 0:18:07.320 they can keep rolling it over for as long as 0:18:07.320 --> 0:18:13.040 people would take it. UM. But the yeah, the each 0:18:13.320 --> 0:18:17.320 inflation is not just for me um, just an increase 0:18:17.320 --> 0:18:20.359 in the money supply. It's also the factor in the 0:18:20.480 --> 0:18:23.679 interest of all of this debt. So if you have 0:18:23.760 --> 0:18:26.160 to service a lot of your debt and your debt 0:18:26.200 --> 0:18:29.879 levels are increasing at every cycle, you will inevitably have 0:18:29.960 --> 0:18:32.040 to put your prices up to a factor in the 0:18:32.119 --> 0:18:36.119 interest on your debt UM and so inflation is not 0:18:36.200 --> 0:18:39.160 just in my perspective, a monetary phenomenon, but it's also 0:18:39.320 --> 0:18:43.520 interest rates and debt phenomenon that is factored into the equation. 0:18:44.160 --> 0:18:46.679 And the interesting thing is that if you look at 0:18:46.760 --> 0:18:51.000 if you look throughout history, that money printing during a 0:18:51.080 --> 0:18:54.720 depression has always been non inflationary in those cases. But 0:18:54.800 --> 0:18:58.000 if you continue to imprint the money supply an increase 0:18:58.119 --> 0:19:02.080 the money supply during a a bull market, as you 0:19:02.119 --> 0:19:05.199 start to enter recovery, um, you start to get you know, 0:19:05.240 --> 0:19:09.479 a destructive effect on the currency in terms of risking 0:19:09.560 --> 0:19:12.879 leaving into an inflation re environment. Um. And if it 0:19:12.960 --> 0:19:16.159 goes terribly wrong, a hyper inflation re environment like we've 0:19:16.160 --> 0:19:20.400 seen in many countries. Um. And so you know, it's 0:19:20.440 --> 0:19:23.879 it's not a very desirable outcome to do that. And 0:19:23.920 --> 0:19:27.879 I think that, yeah, the factoring in all this debt 0:19:27.960 --> 0:19:31.200 into the equation, that means at this stage you need 0:19:31.240 --> 0:19:36.040 to complete renegotiation in order to get out of that. Yeah. Um. 0:19:36.119 --> 0:19:38.040 And as far as the end game, which you already 0:19:38.080 --> 0:19:40.399 kind of highlighted, which we're going to dig into, I mean, 0:19:40.400 --> 0:19:42.520 I kind of see the same thing, but before we do, 0:19:42.640 --> 0:19:45.879 I'm trying to kind of understand what what triggers that, 0:19:45.920 --> 0:19:48.000 because if I we understand what triggers that, it also 0:19:48.080 --> 0:19:51.119 has implications of what that solution is. But before we 0:19:51.160 --> 0:19:53.400 get back to that just quickly, I mean, so we're 0:19:53.440 --> 0:19:56.520 talking about UM, you know, the money creation and when 0:19:56.560 --> 0:19:59.119 will stop or whatever, and so we have UM, I 0:19:59.160 --> 0:20:01.680 know you've talked about out you know, maybe a few 0:20:01.720 --> 0:20:05.040 different types of money systems or economics schools, schools of 0:20:05.040 --> 0:20:10.359 thought kenzie in UM, Monitorizism, Austrian UM. We have a 0:20:10.359 --> 0:20:12.919 new school of thought maybe if you consider it that 0:20:12.920 --> 0:20:15.840 that's really being pushed today. And I think depend on 0:20:15.840 --> 0:20:17.960 who wins the election, we're gonna see it really makes 0:20:17.960 --> 0:20:21.639 some inroads. And that's m m T modern monetary theory. 0:20:21.640 --> 0:20:24.600 And so we have UM the economic advisors on the 0:20:24.600 --> 0:20:28.800 Biden camp trying to push this Green New Deal or 0:20:28.840 --> 0:20:30.719 now he's calling it the Biden Deal or whatever it is. 0:20:30.760 --> 0:20:34.760 But essentially it's UM committing to spend thirty to nine 0:20:35.080 --> 0:20:40.400 trillion dollars to rebuild the system as a as a 0:20:40.400 --> 0:20:42.760 renewable energy UM. And let's not I don't want to 0:20:42.760 --> 0:20:44.720 dig into that policy, but the fact that they can 0:20:44.760 --> 0:20:47.720 just go spend thirty to ninety trillion dollars. Where does 0:20:47.720 --> 0:20:50.320 that money come from? It's obviously this m m T 0:20:50.520 --> 0:20:53.320 of just being able to print money. Um, I mean 0:20:53.520 --> 0:20:56.119 will that work and they continue just to print that money? 0:20:56.119 --> 0:21:00.240 And if so, won't that hold off this debt collaps 0:21:00.240 --> 0:21:04.919 that you're talking about. Yes, And modern monetary theory is um. 0:21:05.119 --> 0:21:06.840 So if you look at the system you were just 0:21:06.880 --> 0:21:09.439 talking about, the prevalent way of money creation at the 0:21:09.480 --> 0:21:12.760 moment is through quantitative easy and what that essentially, what 0:21:12.880 --> 0:21:16.359 that is is the central bank just creates money which 0:21:16.400 --> 0:21:19.040 is a digital ledger in their balance sheet, and then 0:21:19.040 --> 0:21:21.680 it used that money in order to purchase government debt. 0:21:21.760 --> 0:21:25.440 And so the government is actually borrowing the money and 0:21:25.560 --> 0:21:28.000 having to pay interest on that money for money and 0:21:28.000 --> 0:21:31.760 creation from the treasury to the Federal Reserve UM. And 0:21:31.800 --> 0:21:34.800 that is a really really inefficient system. There's no point 0:21:35.400 --> 0:21:38.040 the government borrowing the money when you start to actually 0:21:38.080 --> 0:21:41.480 understand the mechanism, because the government already has the ability 0:21:41.520 --> 0:21:44.239 to create the money and supply um. It can do 0:21:44.280 --> 0:21:46.960 that as it chooses, but instead it outsources it to 0:21:47.000 --> 0:21:51.520 the Federal Reserve UM and has to repay in factor 0:21:51.520 --> 0:21:54.080 in all this debt on top of that. So modern 0:21:54.080 --> 0:21:57.000 monetary theory says, well, why doesn't the government just create 0:21:57.000 --> 0:21:59.399 the money in its own in the first place and 0:21:59.440 --> 0:22:01.720