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Speaker 1: The downfall of gold, why it can't be money again,

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Speaker 1: and what comes next Now, A lot of people are

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Speaker 1: still cleaning into gold as if it's this life preserver,

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Speaker 1: if it's going to save them. I was recently speaking

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Speaker 1: at the Freedom Fest in Las Vegas, and there was

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Speaker 1: all these gold dealers there at Freedom Fest, as if

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Speaker 1: it was going to bring more freedom. But the problem

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Speaker 1: is that most people don't realize why gold failed. And

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Speaker 1: I get it. Central banks for buying gold at a

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Speaker 1: faster rate than they have in decades, and so people

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Speaker 1: are thinking we'll return to a gold standard. But what

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Speaker 1: most people don't understand is that gold failed for a reason,

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Speaker 1: and that reason will prevent it from ever being global

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Speaker 1: money again. So in this video, in this a live

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Speaker 1: presentation to give it to Freedom Fest, I broke down

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Speaker 1: why goldzeld, why it can't ever really be used as

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Speaker 1: money again, and what I think comes next. Now. I

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Speaker 1: gave this as a presentation to a live audience at

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Speaker 1: the Freedom Fest in Las Vegas, but you get to

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Speaker 1: watch it without having to buy a ticket and without

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Speaker 1: having to travel. So let's go, all right, let's get

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Speaker 1: this thing warmed up. Thanks for coming in, appreciate it.

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Speaker 1: Everybody come in. I appreciate everyone coming to the event.

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Speaker 1: First of all, freedom Fest. It's a pretty important topic.

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Speaker 1: I would ask if you guys like freedom, but of

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Speaker 1: course you do. We're all here, so I appreciate you

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Speaker 1: guys coming. It's my third year i've been at Freedom Fest,

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Speaker 1: and again it's such an important topic. I love coming.

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Speaker 1: I appreciate all of you taking the time and wandering

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Speaker 1: into this little room over here to hear me talk.

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Speaker 1: I'm going to talk about something today that I think

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Speaker 1: should be super important to each one of you here

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Speaker 1: at the Freedom Fest, and that is being a sovereign individual.

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Speaker 1: And I was going to talk about the end of

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Speaker 1: the international monetary order. Don't worry, we're still going to

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Speaker 1: bring that in there. But I want to talk about

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Speaker 1: being a true sovereign individual. And the way that I

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Speaker 1: think about sovereignty is being able to direct my life

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Speaker 1: as I see fit. How many like being told what

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Speaker 1: to do when that's not what you want to do,

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Speaker 1: you know, when you're coerced, like you know, take the

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Speaker 1: job or quit your job right where either one of

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Speaker 1: those choices leads to somebody else's end. So, for me,

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Speaker 1: being sovereign is being able to not be not have

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Speaker 1: freedom of choice. There are someone else's choices, but my

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Speaker 1: own choices. And so I want to talk about how

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Speaker 1: we can do that today and actually what I'm calling

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Speaker 1: the final peace to that. So I think it's a

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Speaker 1: pretty big topic. It should be pretty fun. Now, there's

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Speaker 1: two growing trends that we have in the world today,

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Speaker 1: and I'm guessing each one of you see them because

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Speaker 1: you're here at the Freedom Fest. And the two trends

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Speaker 1: are one, unfortunately, an alarming and a rapid rate of

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Speaker 1: increase of authoritarianism all across the world. It's a trend,

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Speaker 1: and it's trending the wrong way. We're seeing this in

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Speaker 1: nations all over the world, and even here in the

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Speaker 1: United States, the Land of the Free, a democratically state supposedly,

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Speaker 1: I know, a republic, but in this democratic state where

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Speaker 1: you're supposed to be able to vote for your leaders,

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Speaker 1: your representatives who rise to power, and here we might

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Speaker 1: see an installed person taking Biden place and become like

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Speaker 1: more of a dictator. They're preaching to save democracy at

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Speaker 1: the same time subverting it. And this is in the

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Speaker 1: Land of the Free. Of course, across the world, we're

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Speaker 1: seeing author authoritarianism rise faster and faster and faster, and

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Speaker 1: that's a problem. On the other end of that, we

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Speaker 1: have another driving force, a growing trend, and that's this

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Speaker 1: endless debasement. And the problem is that no matter how

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Speaker 1: fast you can make money, no matter how much value

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Speaker 1: you're providing into the world, you're working against the tide.

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Speaker 1: And the tide is that governments want to continue to

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Speaker 1: print more money to fund any number of programs that

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Speaker 1: they have. And of course, again back to the Land

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Speaker 1: of the Free, we're at the same rate in other

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Speaker 1: countries Argentina, Venezuela, Lebanon, Peru, Turkey, et cetera. You see

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Speaker 1: it happening at a very rapid rate. The technical definition

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Speaker 1: of hyperinflation would be fifty percent increase month over month

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Speaker 1: or fifty percent inflation month over month, inflating against what

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Speaker 1: the dollar inflating against gold. And so we're seeing this

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Speaker 1: endless debasement. But even here in the United States, I

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Speaker 1: mean Argentina, Venezuela, sure triple digit inflation. Even the United States,

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Speaker 1: over the last four years, the monetary debasement has been

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Speaker 1: ten percent since twenty nineteen. And what does that mean

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Speaker 1: for you, Well, that's what we call a hurdle rate.

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Speaker 1: So a hurdle rate is if you have a business

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Speaker 1: and you want to borrow money for your business, Let's

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Speaker 1: say at eight percent, the hurdle rate is now eight percent.

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Speaker 1: I have to make more than eight percent to offset

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Speaker 1: the interest I have to pay on the debt. And

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Speaker 1: so what each one of you or most people are

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Speaker 1: thinking about is inflation CPI. Oh, it's three point three

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Speaker 1: three point five percent. No, no, no. The hurdle rate

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Speaker 1: is the rate of debasement. And so if it's at

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Speaker 1: averaging ten percent, you need to be making more than that.

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Speaker 1: And so we have these two issues. And again this

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Speaker 1: is even the Land of the Free. It's not so bad. Now,

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Speaker 1: the question I would ask you is do you think

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Speaker 1: authoritarianism and debasement continue? Is that a trend that will

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Speaker 1: continue or does that magically go away? It probably continues,

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Speaker 1: So let's talk about how we can protect ourselves from

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Speaker 1: those two tides. Now, there's been a numerous budies that

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Speaker 1: have been done. I have a couple of charts here

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Speaker 1: on the screen, and we can see sixteen years of

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Speaker 1: democratic decline. Right, this is globally. We can see this

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Speaker 1: and that this is of course at the time when

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Speaker 1: the United States is exporting democracy to the rest of

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Speaker 1: the world, but yet it continues to be in decline.

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Speaker 1: So it's not just a feeling that we have, it's

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Speaker 1: actually happening. We can measure it, we can gauge it.

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Speaker 1: Here we can see that eight out of ten people

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Speaker 1: are now living in a partly free or a not

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Speaker 1: free world. We can see the data is showing this

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Speaker 1: exactly this right here. Partly free. I'm not even sure

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Speaker 1: what that means. We're either free or or not. But

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Speaker 1: this is the world that we're living in. And so

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Speaker 1: we can see that the debasement is continuing at a

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Speaker 1: rapid rate. As a matter of fact, the trillion dollar conundrum.

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Speaker 1: Since the founding of the United States, it took until

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Speaker 1: the nineteen eighties before the US government had racked up

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Speaker 1: one trillion dollars in debt from inception until nineteen eighty.

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Speaker 1: Currently this lies actually a little out of date here.

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Speaker 1: Currently we're adding about one trillion dollars of debt to

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Speaker 1: the US government every ninety days every quarter, and even

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Speaker 1: that is understated the goal. So every single time the

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Speaker 1: government puts out the Treasury puts out what their funding

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Speaker 1: requirements are for the year they revised them later, and

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Speaker 1: it's going faster and faster and faster. And I put

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Speaker 1: here does this laser point of words. I put these

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Speaker 1: red lines here just so you can see the trend.

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Speaker 1: So right here is this vertical red line. That's nineteen

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Speaker 1: seventy one. Anybody know what year that was the significance

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Speaker 1: of that, right that's the year we got off the

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Speaker 1: gold standard. And so you can see that this red

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Speaker 1: trend line was tracking pretty horizontal right here. But right

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Speaker 1: around nineteen seventy you can see this trend line started

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Speaker 1: taking off. So you can see the rate of debasement

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Speaker 1: is accelerating, right It's going faster and faster and faster.

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Speaker 1: Right here, around two thousand the dot com crash, it

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Speaker 1: took a whole nother turn up right here. Two thousand

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Speaker 1: and eight, it took another turn up here. Twenty twenty,

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Speaker 1: it's taking another turn up, and we're almost going straight

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Speaker 1: up faster. Could this rate of debasement be? And again,

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Speaker 1: this is in America, This is where it's not even

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Speaker 1: that bad, and this is a global situation that we're

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Speaker 1: dealing with. We can see that the whole world is

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Speaker 1: dealing with this situation at the exact same time. And

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Speaker 1: a lot of people get caught off sides by this

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Speaker 1: because they look at the United States, look at the

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Speaker 1: Federal Reserve. Of course, we have the dollar system, and

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Speaker 1: so they say, well, the Fed is tightening the monetary supply,

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Speaker 1: they're trying to slow down inflation, but the rest of

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Speaker 1: the world is not, so we have to be paying attention.

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Speaker 1: We can see right here the world's major central banks.

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Speaker 1: We don't have to pay attention to all one hundred

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Speaker 1: and sixty of them, but at least the major central banks,

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Speaker 1: which would be the ECB, European Central Bank, the BOJ

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Speaker 1: the Bank of Japan, the PBOC China Central Bank, and

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Speaker 1: of course the Federal Reserve, and we can see that

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Speaker 1: they're all rapidly debasing the currency as fast as they can.

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Speaker 1: And look, nothing ever goes up or down in a

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Speaker 1: straight line. So we can see that the zigzagged here,

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Speaker 1: but we can see the direction and the trend that

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Speaker 1: we're on. So this is a major problem for us.

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Speaker 1: It's the reason why even though you look at your

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Speaker 1: retirement accounts and you look at your four one K,

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Speaker 1: you look at your mutual funds and the valuation went

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Speaker 1: way up, but you don't feel more rich. It's why

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Speaker 1: on paper you should be more wealthy, but you don't

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Speaker 1: feel it. And it's because this rapid rate of debasement

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Speaker 1: is continuingly stealing the power, the purchasing power from those

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Speaker 1: currency units in your bank account. Even though the money's

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Speaker 1: still there, it just doesn't get you as much as

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Speaker 1: it used to. Now again bringing this back to home,

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Speaker 1: here we are at the Freedom Fest and we're talking

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Speaker 1: about sovereignty, but I want to talk about specifically financial

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Speaker 1: sovereignty and the reason why we bring it back to

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Speaker 1: financial sovereignty. I was speaking to Congressman Thomas Massey yesterday

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Speaker 1: and he asked me, hey, Mark, just tell me one

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Speaker 1: reason why people should care about bitcoin. And this is

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Speaker 1: something I would typically hear someone says, explain bitcoin to

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Speaker 1: me like I'm five years old and in two minutes,

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Speaker 1: and I'm like, I can't, Like a five year old

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Speaker 1: just won't get it. But he said, boil it down

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Speaker 1: to one statement, I said, the reason why financial sovereignty.

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Speaker 1: The reason why is because all freedom sits at the

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Speaker 1: ability to transact, the freedom to transact. If we don't

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Speaker 1: have freedom to transact, then we have no other freedoms.

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Speaker 1: Let me give you an example. In the United States,

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Speaker 1: we have this wonderful document called the Constitution. It's being disregarded,

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Speaker 1: but hopefully we'll get that restored at some point. But

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Speaker 1: we have this constitution that guarantees our freedoms, for example,

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Speaker 1: freedom of assembly. However, if I don't have the freedom

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Speaker 1: to transact, how do I put gas in my truck

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Speaker 1: to drive to the assembly. How do I pay for

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Speaker 1: a hotel room when I get to the assembly? How

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Speaker 1: do I get food when I go to the assembly?

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Speaker 1: And so if I can't transact, I can't go assemble.

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Speaker 1: We have guaranteed the freedom of speech, but in today's

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Speaker 1: day and age of the information age, if I can't

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Speaker 1: pay to get a computer to get on the internet

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Speaker 1: or a phone, how do I have any speech? And

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Speaker 1: so at the underpinning of all freedom comes the ability

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Speaker 1: to transact, which of course they understand that, which is

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Speaker 1: why they want to take that away. Now there's a

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Speaker 1: newspaper or a website and a newsletter called Sovereign Man,

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Speaker 1: and I pulled this off of their website Sovereign Man,

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Speaker 1: and these are some steps that they would recommend for

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Speaker 1: each one of you to become a little bit more

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Speaker 1: sovereign to get more freedom in your life. And you

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Speaker 1: walk around this show floor out here, there's no shortage

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Speaker 1: of people out here offering you types of solutions for

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Speaker 1: this as well. A lot of gold dealers are out here.

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Speaker 1: And these are some of the steps that we'd see

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Speaker 1: directly off of this sovereign man. This is a shift sovereign.

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Speaker 1: And so they said, hey, number one, we should go

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Speaker 1: online and you should buy a safe. Why would I

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Speaker 1: want to have a safe? Well, that way I could

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Speaker 1: have assets in my control that I could keep them

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Speaker 1: at my location, in my custody, and I could try

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Speaker 1: to keep them safe cool. I should get some physical

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Speaker 1: cash and I should probably put that physical cash in

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Speaker 1: the safe, and then I should buy some gold and

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Speaker 1: silver coins. That's how we get more freedom right now

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Speaker 1: with three steps. And the thought process behind this is that, well,

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Speaker 1: if I have custody, if I have control of these assets,

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Speaker 1: then nobody else does. That would be what we call

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Speaker 1: counterparty risk. If I leave my cash in the banks,

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Speaker 1: then my money could be at risk in the banks.

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Speaker 1: If I leave my gold in a safety deposit box,

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Speaker 1: that gold could be at risk. But if we take

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Speaker 1: a step back, I think what is it that we're

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Speaker 1: really trying to do here, What is it that we're

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Speaker 1: really trying to do? Well, as I said, right, we're

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Speaker 1: trying to take custody. We're trying to remove that counterparty risk. Well,

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Speaker 1: we have to understand that all of our assets actually

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Speaker 1: have this, all of our assets actually have counterparty risk.

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Speaker 1: So what am I talking about? Well, we can see

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Speaker 1: this across, So let's just start on the right financial assets.

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Speaker 1: There was a world maybe some of you remember this

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Speaker 1: world where like stock certificates actually used to be physical certificates,

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Speaker 1: and you actually used to have that physical certificate. Today

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Speaker 1: you're not allowed to own stocks anymore. Do you guys

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Speaker 1: know that you think you own stocks? You might have Tesla, Apple,

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Speaker 1: Google in your account, but tend to you don't own

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Speaker 1: that legally that stock is owed to you. It's a

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Speaker 1: big deal. It's a big difference. Anybody heard of that book,

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Speaker 1: The Great Taking? Best about that recently? Nobody here. It's

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Speaker 1: pretty interesting that this conversation A lot usually this conference

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Speaker 1: people ask me about that. But in The Great Taking

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Speaker 1: he basically breaks this process down. But we don't have

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Speaker 1: this instrument to stock certificate anymore. Now it's owed to me.

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Speaker 1: We're in a debt based system, a debt based economy,

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Speaker 1: and so if that broker doesn't want to give me

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Speaker 1: that stock, I don't get it. The same as the

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Speaker 1: money in the bank, the money in your bank is

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Speaker 1: no longer your money in the bank. That money in

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Speaker 1: the bank is now owed to you. And again usually

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Speaker 1: it's not that big of a deal, but legally it

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Speaker 1: is if something were to happen to that bank. And

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Speaker 1: it's also a problem when that bank doesn't want to

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Speaker 1: allow you to even access your own money. I gave

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Speaker 1: a talk in another room yesterday, so I won't go

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Speaker 1: back to the whole process. Some of you are here,

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Speaker 1: But currently I'm in the process of raising money. We

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Speaker 1: have a publicly traded company. We're launching. It's licensed, it's regulated,

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Speaker 1: it's launching on the Toronto Stock Exchange, and we're raised money.

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Speaker 1: And one of our investors in the company is banking

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Speaker 1: with Fidelity, and he's trying to wire money from his

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Speaker 1: Fidelity account into our company, into a regulated public entity.

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Speaker 1: And Fidelity told him no. They said, well, we don't

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Speaker 1: know what this money's for. Can you give us so

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Speaker 1: many information? He pulled up a website, Well, we don't

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Speaker 1: see what this is really for. Okay, we need to

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Speaker 1: understand who these people are. How do you know them.

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Speaker 1: He went through this whole process, multiple levels of authorization,

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Speaker 1: and he said finally, look, hey, I need to get

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Speaker 1: this through. The deadlines coming and they said, we don't

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Speaker 1: see it's going to be possible for us to send

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Speaker 1: that money for you. His own money in his own

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Speaker 1: bank And it happens every day. People get their bank

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Speaker 1: accounts shut down. My friend dot doctor Joe Murcola, probably

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Speaker 1: a lot of you know who he is. Not only

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Speaker 1: were his bank accounts shut down, the people that work

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Speaker 1: for him his bank accounts were shut down, and even

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Speaker 1: their family members banks accounts were shut down. So we

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Speaker 1: see that happens all the time. Real estate, same thing,

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Speaker 1: counterparty risk. Of course, you own your house hypothetically, just

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Speaker 1: don't stop paying your proper taxes. We can see what

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Speaker 1: happens with that as well as a house isn't really

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Speaker 1: very portable. And then of course gold. Now, for the

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Speaker 1: most part, we can have a few ounces of gold

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Speaker 1: in our home safe. Any more than that it's probably

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Speaker 1: gonna need to go into a vault somewhere. And that's

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Speaker 1: a big problem because once I put that gold in

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Speaker 1: a vault. Again, it's no longer in my custody. And

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Speaker 1: I've now introduced counterparty risk. Now I'll kind of set

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Speaker 1: the stage to understand where we're at in this society today,

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Speaker 1: where we are under this threat of authoritarianism that want

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Speaker 1: to tell us what to do, and we have this

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Speaker 1: rapid debasement. Some solutions would tell me that I should

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Speaker 1: get a safe, I should get some cash, I get

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Speaker 1: some gold, and I should hold it. But the problem

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Speaker 1: is if we step back and go what is the

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Speaker 1: actual problem we're trying to solve, we might see there's

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Speaker 1: another solution. So what I want to do is just

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Speaker 1: run quickly through here. What is even money? And a

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Speaker 1: lot of people think they understand what money is because

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Speaker 1: we all use it, we all depend on it, and

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Speaker 1: everything that we have in our society is denominated in dollars.

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Speaker 1: It's in money. But we think about money specifically. I

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Speaker 1: like to say that nobody wants money. I said this

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Speaker 1: at lunch just now earlier, and I said, what do

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Speaker 1: you mean nobody wants money? We don't want money. We

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Speaker 1: want the things that money buys us. We want the

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Speaker 1: goods and services that money buys us. We don't want

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Speaker 1: the money itself. It's just a placeholder until we're ready

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Speaker 1: to deploy that. And if we understand that, then we

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Speaker 1: can understand that it's sort of a medium of exchange.

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Speaker 1: It communicates value. It's a way that I can trade

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Speaker 1: that money that good for something that I want. And

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Speaker 1: when we understand that, we can see that throughout thousands

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Speaker 1: of years of history, we've had all different types of money,

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Speaker 1: and money is a natural and emergent process, and so

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Speaker 1: we've had rocks, we've had feathers, we've had seashells, and

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Speaker 1: of course we've settled on gold, and gold has been

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Speaker 1: that form of money for now five thousand years. What

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Speaker 1: we can see is that it's this emergent it's this

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Speaker 1: evolutionary process, and so it sort of looks like this.

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Speaker 1: It starts down here at the bottom as a collectible. Oh,

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Speaker 1: look at this rock. This is a pretty rare rock.

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Speaker 1: This is pretty cool. We all collect it. Look at

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Speaker 1: this feather, it's pretty rare. Look at this painting. Whatever.

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Speaker 1: It's a collectible. Now, if this collectible is able to

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Speaker 1: make this next evolutionary step, this next emergent step, it

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Speaker 1: could become just the random rock or a feather, and

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Speaker 1: it could become a store of value. And so we

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Speaker 1: see today many of the rich people, billionaires, et cetera.

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Speaker 1: They store their wealth in collectibles today, fine art, watches,

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Speaker 1: old cars, things like that, and so we see a

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Speaker 1: lot of wealth about I believe six trillion dollars is

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Speaker 1: parked just in those collectible assets right now in the

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Speaker 1: world today. But here's where we get to the next step.

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Speaker 1: Maybe if sometimes, if there's a collectible that becomes a

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Speaker 1: good enough store of value, it could potentially maybe emerge

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Speaker 1: to the next final step, which is a medium of exchange,

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Speaker 1: and we could start to use that collectible, that store

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Speaker 1: of value to exchange for other goods and services if

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Speaker 1: it has the right attributes. We're going to come back

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Speaker 1: to this in a second. And then maybe potentially, if

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Speaker 1: it was a medium of exchange, it could move to

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Speaker 1: the final step, which would be called a unit of account. Right,

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Speaker 1: And so this is how we've seen things. And of

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Speaker 1: course the dollars were based off of a unit of

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Speaker 1: account of a measure of gold. Obviously the pounds sterling.

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Speaker 1: Talked about a pound of sterling silver. Just a month

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Speaker 1: ago in Russia, President Putin had a meeting the Saint

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Speaker 1: Petersburg Economic Forum, which is their counter to the World

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Speaker 1: Economic Forum, and they introduced at that meeting a month

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Speaker 1: ago that they are going to launch their own bricks currency.

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Speaker 1: We've been talking hearing about it for years. They finally

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Speaker 1: announced it, and they're going to call this new currency.

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Speaker 1: It's going to be called the unit, and that unit

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Speaker 1: will be backed by forty percent by a weight of gold,

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Speaker 1: not a dollar amount of gold, but a weight of gold,

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Speaker 1: and sixty percent to a basket of currencies. But again

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Speaker 1: it becomes a unit of account. That's the final stage,

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Speaker 1: but only if it has the right action. This is

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Speaker 1: another page that I had taken from Peter Schiff off

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Speaker 1: of his website, and this goes back all the way too,

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Speaker 1: I believe Socrates. But in order to have a good

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Speaker 1: money that becomes a medium exchange, it has to have

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Speaker 1: the right attributes. Otherwise it stays a collectible. It never

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Speaker 1: makes the emergent step, which would be it needs to

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Speaker 1: be durable, portable, divisible. It needs to have intrinsic value, fungible, scarcity, salability, etc.

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Speaker 1: So for example, it needs to be durable. Bananas would

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Speaker 1: be a horrible form of money. They go bad in

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Speaker 1: about seven days on your countertop. It need to be portable.

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Speaker 1: They need to be divisible. So like a mona lisa

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Speaker 1: works as a store of value, it's gone up in value,

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Speaker 1: but it's not a good mentum exchange because I can't

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Speaker 1: divide that mona lisa down. It needs to be fungible.

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Speaker 1: One unit has to be worth one unit. If I

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Speaker 1: cut up a cow, maybe the ribbi is worth more

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Speaker 1: than the liver, right, So it needs to be all

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Speaker 1: of these things in order to actually be good money.

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Speaker 1: And the problem is that most things don't make money

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Speaker 1: because the world has changed. If some of you maybe

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Speaker 1: haven't realized that we've come from what was known as

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Speaker 1: the Industrial Age into now what's known as the Information Age,

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Speaker 1: and what we've used for money for five thousand years,

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Speaker 1: which has been gold. Gold is natural money, fietas fake.

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Speaker 1: What we've used is money. What has emerged as the

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Speaker 1: best form of money because it met the best attributes.

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Speaker 1: It was the most scarce, the most fungible, divisible, portable, durable,

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Speaker 1: et cetera. The problem is it's just not very portable,

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Speaker 1: not in the information age today. And the reason why

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Speaker 1: is because things change and what changed specifically, well starting

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Speaker 1: in about fifteen hundred, the world started to expand at

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Speaker 1: a pretty rapid rate, and it expanded through a rapid

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Speaker 1: rate through something known as globalization or global trade. You

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Speaker 1: grow the food, all make the clothes, and we'll just trade.

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Speaker 1: And trade started expanding across the world, across the seas.

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Speaker 1: We had the Silk Road before that, et cetera. But

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Speaker 1: the problem is that, again, gold is not very portable.

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Speaker 1: So if I want to trade somebody in the Far

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Speaker 1: East or in the Middle East or something like that,

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Speaker 1: how do I pay them. Well, I have to get

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Speaker 1: a whole bunch of gold, which is really heavy, and

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Speaker 1: I have to transport it across the seas. Hopefully my

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Speaker 1: ship doesn't saying I don't lose all the gold, which

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Speaker 1: of course happens. Hopefully the pirates don't steal all my gold.

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Speaker 1: Hopefully I can get the gold across the continent under

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Speaker 1: hostile territory and I don't get it taken from me.

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Speaker 1: And so it became a very big problem that we had. Now,

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Speaker 1: of course, problems create solutions. That's the way the world

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Speaker 1: is supposed to work. We're all supposed to be looking

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Speaker 1: for problems and finding solutions for that, and so we

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Speaker 1: came up with a problem in fifteen hundred. Luco Peiliali

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Speaker 1: there's an image of him right here, came up with

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Speaker 1: a new technological invention in fifteen hundred, and it was

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Speaker 1: called the ledger. It was the ledger and double entry accounting.

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Speaker 1: And basically what that said was, hey, you give us

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Speaker 1: the gold, and we'll just keep track of who has what.

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Speaker 1: You see in a physical world, like I have this

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Speaker 1: clicker in my hand right here, and everybody can see this.

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Speaker 1: It's physical, and if I were to give the clicker

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Speaker 1: to you, then everyone could see that I've given the

428
00:20:59,119 --> 00:21:02,119
Speaker 1: clicker away. But in the information age, how do we

429
00:21:02,200 --> 00:21:04,520
Speaker 1: keep track of that? And of course there was no

430
00:21:04,600 --> 00:21:07,720
Speaker 1: way before fifteen hundred, but with the ledger, we got

431
00:21:07,760 --> 00:21:09,879
Speaker 1: the ability to do that. Now, when we got the

432
00:21:09,920 --> 00:21:11,960
Speaker 1: ability to do that, it opened up free trade faster.

433
00:21:12,080 --> 00:21:15,359
Speaker 1: Now we didn't have to lug this heavy gold around

434
00:21:15,359 --> 00:21:17,560
Speaker 1: the world because remember gold is not very portable. And

435
00:21:17,560 --> 00:21:20,680
Speaker 1: what we can see happened is global trade just started

436
00:21:20,720 --> 00:21:25,280
Speaker 1: to take off. So it worked. It added what's called

437
00:21:25,359 --> 00:21:29,919
Speaker 1: velocity to money, right, so as transaction times got faster,

438
00:21:30,040 --> 00:21:31,760
Speaker 1: it became much easier for me to get the goods

439
00:21:31,760 --> 00:21:35,680
Speaker 1: and services that I wanted. The transaction sped up and

440
00:21:36,000 --> 00:21:38,560
Speaker 1: it allowed money to move faster. The velocity of money

441
00:21:38,600 --> 00:21:42,400
Speaker 1: picked up. Here's the problem. The velocity problem is that

442
00:21:42,440 --> 00:21:46,080
Speaker 1: in order to get gold to move faster, in order

443
00:21:46,119 --> 00:21:51,560
Speaker 1: to add more velocity to gold, it caused a big problem.

444
00:21:51,880 --> 00:21:54,080
Speaker 1: And that big problem is what I call a bug.

445
00:21:54,280 --> 00:21:56,080
Speaker 1: It put a bug into the system, and that's a

446
00:21:56,119 --> 00:21:58,960
Speaker 1: trust bug. You see. The thing with trust is that

447
00:21:58,960 --> 00:22:01,199
Speaker 1: trust is very fragile. I'm sure you guys understand this.

448
00:22:01,359 --> 00:22:03,840
Speaker 1: If you've ever had a business partner or some other

449
00:22:03,840 --> 00:22:06,159
Speaker 1: partner that maybe was embezzling from you or stealing from you,

450
00:22:06,240 --> 00:22:08,479
Speaker 1: or cheating on you, you have your suspicions. And then

451
00:22:08,480 --> 00:22:11,600
Speaker 1: once you find out something like that happened, the trust

452
00:22:11,680 --> 00:22:14,080
Speaker 1: is gone and it doesn't just come back. It doesn't

453
00:22:14,119 --> 00:22:16,680
Speaker 1: come back very easy. And so trust is very fragile.

454
00:22:16,720 --> 00:22:20,119
Speaker 1: But when the ledger was introduced to gold to speed

455
00:22:20,160 --> 00:22:22,480
Speaker 1: it up, it created the trust problem because now all

456
00:22:22,480 --> 00:22:25,480
Speaker 1: the gold went into a bank. This person is keeping

457
00:22:25,480 --> 00:22:27,399
Speaker 1: the ledger saying that, well, the gold's going to come

458
00:22:27,400 --> 00:22:28,520
Speaker 1: from this guy and going to go to this guy.

459
00:22:28,680 --> 00:22:30,879
Speaker 1: But how do we know that he really moved it

460
00:22:30,920 --> 00:22:32,359
Speaker 1: from my account to your account, How do we know

461
00:22:32,400 --> 00:22:34,160
Speaker 1: that they really have the gold that they say they have,

462
00:22:34,520 --> 00:22:36,119
Speaker 1: and all of these other problems that we had. And

463
00:22:36,160 --> 00:22:39,959
Speaker 1: more importantly, what it did is it created debt on

464
00:22:40,080 --> 00:22:42,879
Speaker 1: top of the asset. So in order to get the

465
00:22:42,960 --> 00:22:46,840
Speaker 1: velocity onto the system, we had to introduce debt, which means,

466
00:22:46,920 --> 00:22:49,720
Speaker 1: like I said earlier, the gold is now owed to me,

467
00:22:50,440 --> 00:22:54,080
Speaker 1: I don't actually have it now. We can see that

468
00:22:54,200 --> 00:22:58,879
Speaker 1: throughout history, every time we've used this bug, the trust bug,

469
00:22:59,119 --> 00:23:02,000
Speaker 1: it turned out to be well, let's just say not good.

470
00:23:02,119 --> 00:23:03,639
Speaker 1: We can see that trust is very fragile. So we

471
00:23:03,680 --> 00:23:06,239
Speaker 1: can look back all the way to England, right, and

472
00:23:06,280 --> 00:23:08,479
Speaker 1: so in England sort of where the creation of the

473
00:23:08,480 --> 00:23:12,040
Speaker 1: first central bank started, we can see that they created

474
00:23:12,040 --> 00:23:14,760
Speaker 1: the central bank to create more paper dollars, more Fiat,

475
00:23:14,800 --> 00:23:17,800
Speaker 1: of course, to fight war. And then what they had

476
00:23:17,840 --> 00:23:20,240
Speaker 1: to do is because they printed so many dollars, they

477
00:23:20,280 --> 00:23:21,560
Speaker 1: didn't have the gold to back that up. So what

478
00:23:21,680 --> 00:23:25,520
Speaker 1: they do they suspended convertibility. You could no longer redeem

479
00:23:25,560 --> 00:23:28,960
Speaker 1: those dollars for any gold. They printed a whole bunch

480
00:23:29,000 --> 00:23:31,680
Speaker 1: of Fiat. And then don't worry, we'll go back to gold.

481
00:23:32,320 --> 00:23:34,399
Speaker 1: We'll get to trust back and then we'll suspend the

482
00:23:34,400 --> 00:23:36,760
Speaker 1: convertibility again. And then went back and forth and back

483
00:23:36,760 --> 00:23:38,760
Speaker 1: and forth. In the United States. I'm sure most of

484
00:23:38,760 --> 00:23:40,800
Speaker 1: you guys know here at Freedom Fest, But in nineteen

485
00:23:40,840 --> 00:23:43,879
Speaker 1: thirty three, the United States government seized all the gold.

486
00:23:44,840 --> 00:23:47,920
Speaker 1: So remember, gold is heavy, gold is slow, gold is

487
00:23:47,960 --> 00:23:50,600
Speaker 1: not portable. Just put it in the bank, don't worry.

488
00:23:50,800 --> 00:23:53,560
Speaker 1: What does market on the ledger? And it's the same

489
00:23:53,600 --> 00:23:55,280
Speaker 1: thing as gold. And we'll give you these paper gold

490
00:23:55,280 --> 00:23:58,760
Speaker 1: stipgates that are again debt instruments, IOUs claims to the

491
00:23:58,800 --> 00:24:00,800
Speaker 1: gold that you have in the bank. And that worked

492
00:24:00,840 --> 00:24:04,000
Speaker 1: out pretty well. That allowed for the US economy to flourish.

493
00:24:04,200 --> 00:24:07,439
Speaker 1: But the problem was, again we trusted the government, we

494
00:24:07,480 --> 00:24:09,399
Speaker 1: trusted the banks, and they printed way too many of

495
00:24:09,440 --> 00:24:11,879
Speaker 1: the paper claims didn't match up with the gold in

496
00:24:11,920 --> 00:24:13,720
Speaker 1: the bank. The problem is they owed the gold. So

497
00:24:13,720 --> 00:24:15,199
Speaker 1: what they do, well, they just took it from you.

498
00:24:15,359 --> 00:24:17,800
Speaker 1: And they didn't even just take it from you. I

499
00:24:17,880 --> 00:24:19,919
Speaker 1: wasn't alive at the time, most of us weren't. They

500
00:24:19,920 --> 00:24:22,320
Speaker 1: didn't take it from us. But they also made it

501
00:24:22,320 --> 00:24:29,960
Speaker 1: even illegal to own. Remember, they the authoritarians on the rise,

502
00:24:30,280 --> 00:24:35,200
Speaker 1: don't want you to own anything. You can't own your stocks,

503
00:24:35,480 --> 00:24:38,000
Speaker 1: you can't own your bonds, you can't even own the

504
00:24:38,040 --> 00:24:42,200
Speaker 1: cash and the bank it's all owed to you. So

505
00:24:42,280 --> 00:24:45,479
Speaker 1: we saw that nineteen thirty three. Again, somehow we continued

506
00:24:45,520 --> 00:24:47,800
Speaker 1: to trust the government. They continued to print more paper

507
00:24:47,840 --> 00:24:51,080
Speaker 1: certificates than they had gold in the bank in leading

508
00:24:51,080 --> 00:24:53,439
Speaker 1: into the nineteen sixties. The governments of the world realized

509
00:24:53,480 --> 00:24:55,600
Speaker 1: this and said, we don't want these paper stiputs anymore.

510
00:24:55,600 --> 00:24:57,560
Speaker 1: We want the gold. They started reclaiming the gold, and

511
00:24:57,560 --> 00:25:01,160
Speaker 1: then President Richard Nixon nineteen seventy one defaulted. The United

512
00:25:01,200 --> 00:25:03,760
Speaker 1: States defaulted on what they owed. We're not going to

513
00:25:03,800 --> 00:25:05,480
Speaker 1: give you the gold back, but would you give you

514
00:25:05,520 --> 00:25:09,640
Speaker 1: a bunch of these funny money paper cldertificates. Back then

515
00:25:09,680 --> 00:25:11,480
Speaker 1: we saw I mean, we can see it in China,

516
00:25:11,560 --> 00:25:14,240
Speaker 1: like China supposedly has what thirty thousand tons of gold,

517
00:25:14,440 --> 00:25:16,719
Speaker 1: but in an audit they were found to have a

518
00:25:16,760 --> 00:25:21,520
Speaker 1: whole bunch of fake gold tungsten painted gold bars, right,

519
00:25:21,560 --> 00:25:24,600
Speaker 1: and so over and over and over and over, we

520
00:25:24,640 --> 00:25:27,440
Speaker 1: continue to see how this trust bug continues to get exposed,

521
00:25:27,560 --> 00:25:30,040
Speaker 1: but yet for some reason we continue to trust it.

522
00:25:30,080 --> 00:25:32,560
Speaker 1: Probably be because we don't really have any other option.

523
00:25:32,840 --> 00:25:35,680
Speaker 1: We saw the United States seized all of Venezuela's gold.

524
00:25:36,600 --> 00:25:39,400
Speaker 1: The UK vaults seized all the Venezuela's gold. It wasn't

525
00:25:39,400 --> 00:25:41,800
Speaker 1: in their own vaults, it was in the UK. The

526
00:25:41,920 --> 00:25:44,960
Speaker 1: UK seized it again, it wasn't in their possession. We

527
00:25:45,000 --> 00:25:48,439
Speaker 1: saw the United States seeves Afghanistan central banks money I

528
00:25:48,440 --> 00:25:52,320
Speaker 1: think about seven billion dollars. Anybody remember the Canadian truckers

529
00:25:52,320 --> 00:25:55,440
Speaker 1: that went on during the pandemic, a peaceful protest. They

530
00:25:55,480 --> 00:25:58,960
Speaker 1: just started freezing all their bank accounts. And then finally,

531
00:25:59,080 --> 00:26:01,040
Speaker 1: what I believe is the I don' nil and the coffin,

532
00:26:01,080 --> 00:26:03,760
Speaker 1: if we'll call it, That was the Russia bank accounts

533
00:26:03,760 --> 00:26:06,280
Speaker 1: got frozen, and just recently they decided to go ahead

534
00:26:06,280 --> 00:26:09,359
Speaker 1: and auction them off. Now, if you're one of three

535
00:26:09,480 --> 00:26:13,840
Speaker 1: superpowers in the world with nuclear weapons and you can't

536
00:26:13,880 --> 00:26:16,800
Speaker 1: even keep your money safe, what does that have to

537
00:26:16,840 --> 00:26:18,840
Speaker 1: say for any of us or any other nation for

538
00:26:18,880 --> 00:26:22,160
Speaker 1: that matter. So every nation on Earth was basically put

539
00:26:22,200 --> 00:26:24,879
Speaker 1: on notice, Well, if Russia's Money's not safe, none of

540
00:26:24,880 --> 00:26:27,240
Speaker 1: our money is safe. I think most of us woke

541
00:26:27,280 --> 00:26:29,280
Speaker 1: up during the Canadian truckers, but the whole world woke

542
00:26:29,359 --> 00:26:32,440
Speaker 1: up when the Russia situation happened, and so we realized

543
00:26:32,480 --> 00:26:35,040
Speaker 1: that trust is gone. So where do we go from here?

544
00:26:35,640 --> 00:26:37,119
Speaker 1: And this kind of brings it back to the topic

545
00:26:37,160 --> 00:26:40,040
Speaker 1: of the conversation, which is the end of the international

546
00:26:40,040 --> 00:26:42,359
Speaker 1: monetary order that we have. So where do we go

547
00:26:42,840 --> 00:26:47,280
Speaker 1: from here? In a world where it depends on trust?

548
00:26:48,240 --> 00:26:51,320
Speaker 1: But trust has been completely ruined over and over and

549
00:26:51,359 --> 00:26:54,040
Speaker 1: over and over again. It's like an abusive relationship. Why

550
00:26:54,040 --> 00:26:56,359
Speaker 1: would we continue to go back and trust them? So

551
00:26:56,400 --> 00:26:58,600
Speaker 1: where do we go from here? Well, what we're seeing

552
00:26:58,680 --> 00:27:00,840
Speaker 1: right now is most of the world world, the bricks

553
00:27:00,920 --> 00:27:03,840
Speaker 1: nations which make up more than half of the world's population,

554
00:27:04,440 --> 00:27:07,200
Speaker 1: are moving to something like back to a commodity money.

555
00:27:07,359 --> 00:27:09,840
Speaker 1: So gold was a commodity, right, It's a physical property

556
00:27:09,840 --> 00:27:11,680
Speaker 1: that came out of the ground. And then moving back

557
00:27:11,680 --> 00:27:14,439
Speaker 1: to that. So we see that now nations like Saudi

558
00:27:14,480 --> 00:27:17,399
Speaker 1: Arabia are trading oil outside of the US dollar. And

559
00:27:17,440 --> 00:27:20,000
Speaker 1: the reason why that's important for US is because they're

560
00:27:20,080 --> 00:27:23,600
Speaker 1: no longer putting their surplus their savings in two dollars,

561
00:27:23,880 --> 00:27:27,240
Speaker 1: they're putting it into gold. Instead. We're seeing China go

562
00:27:27,320 --> 00:27:29,560
Speaker 1: around and buy half the lithium mines in the world

563
00:27:29,560 --> 00:27:32,480
Speaker 1: They'd rather have the lithium in the ground than the dollars.

564
00:27:33,359 --> 00:27:36,359
Speaker 1: Even GM general motors spend six hundred and fifty million

565
00:27:36,359 --> 00:27:38,320
Speaker 1: dollars on a lithium mine. They'd rather have the lithium

566
00:27:38,359 --> 00:27:41,240
Speaker 1: in the ground than the dollars. What does that tell you.

567
00:27:43,040 --> 00:27:45,800
Speaker 1: It tells you that they think that lithium will be

568
00:27:45,840 --> 00:27:48,280
Speaker 1: more important than dollars in the future. It will cost

569
00:27:48,359 --> 00:27:50,080
Speaker 1: us more dollars in the future by the lithium. I'd

570
00:27:50,119 --> 00:27:52,440
Speaker 1: rather have it now we see. It's part of the

571
00:27:52,480 --> 00:27:54,240
Speaker 1: reason why we see the OPEC nations wanting to put

572
00:27:54,320 --> 00:27:56,479
Speaker 1: less oil out of the ground. They'd rather keep the

573
00:27:56,520 --> 00:28:01,399
Speaker 1: oil in the ground than hold these doll that are

574
00:28:01,400 --> 00:28:03,800
Speaker 1: required to have trust on them. And so the world

575
00:28:03,880 --> 00:28:07,359
Speaker 1: finds themselves at this inflection point right now. For about

576
00:28:07,440 --> 00:28:10,440
Speaker 1: five thousand years. For most of recorded history, the world

577
00:28:10,440 --> 00:28:15,119
Speaker 1: has used commodity money again feathers, rock, seashells, and gold

578
00:28:15,840 --> 00:28:19,879
Speaker 1: for five thousand years. Around nineteen forty four, the world

579
00:28:19,920 --> 00:28:22,480
Speaker 1: got onto what's known as the Breton Woods Agreement, and

580
00:28:22,520 --> 00:28:25,320
Speaker 1: the Breton Woods Agreement is that the dollar would be

581
00:28:25,320 --> 00:28:28,080
Speaker 1: back to backed by gold, and then all the other

582
00:28:28,200 --> 00:28:32,040
Speaker 1: nations of the world would peg their currencies to the dollar, right,

583
00:28:32,320 --> 00:28:35,240
Speaker 1: and so we were still sort of semi quasionic gold

584
00:28:35,240 --> 00:28:37,320
Speaker 1: standard because the dollar was backed by gold, but it

585
00:28:37,400 --> 00:28:39,960
Speaker 1: was kind of like part gold part fiat system. That's

586
00:28:39,960 --> 00:28:42,080
Speaker 1: why I kind of have that overlapping there. So we

587
00:28:42,160 --> 00:28:45,680
Speaker 1: had gold bars and we had fiat. Nineteen seventy one,

588
00:28:45,760 --> 00:28:47,720
Speaker 1: we got off the gold standard, as we talked about,

589
00:28:48,640 --> 00:28:51,240
Speaker 1: and went on too a purely fiat standard. Right, so

590
00:28:51,240 --> 00:28:54,200
Speaker 1: there's nothing backing it, there's no gold in the bank.

591
00:28:55,160 --> 00:28:58,920
Speaker 1: And now we find ourselves at this inflection point, and

592
00:28:58,960 --> 00:29:01,080
Speaker 1: the question is where do we go from here? Back

593
00:29:01,120 --> 00:29:03,200
Speaker 1: to the end of the international monitor order. We're not

594
00:29:03,240 --> 00:29:06,760
Speaker 1: talking about the death of the dollar. We're talking the

595
00:29:06,880 --> 00:29:10,040
Speaker 1: death of the entire fiat monetary system that we're seeing

596
00:29:10,040 --> 00:29:14,360
Speaker 1: today now. As I just said, last month, the Bricks

597
00:29:14,400 --> 00:29:16,320
Speaker 1: finally announced to come out with this new currency, which

598
00:29:16,360 --> 00:29:19,440
Speaker 1: is going back to gold backed. We see what's happening

599
00:29:19,880 --> 00:29:21,720
Speaker 1: with these nations, as I said, these Bricks nations are

600
00:29:21,720 --> 00:29:23,680
Speaker 1: starting to put their savings into gold. As a matter

601
00:29:23,680 --> 00:29:25,560
Speaker 1: of fact, for the last ten years, central banks around

602
00:29:25,600 --> 00:29:29,080
Speaker 1: the world have been net sellers of treasuries US treasuries,

603
00:29:29,080 --> 00:29:31,160
Speaker 1: which used to be the reserve asset and their net

604
00:29:31,200 --> 00:29:34,680
Speaker 1: buyers of gold, and so we can see this trend

605
00:29:34,960 --> 00:29:38,320
Speaker 1: where trust is lost. They don't want to buy us

606
00:29:38,400 --> 00:29:40,400
Speaker 1: treasures those are going to be taken from them, nor

607
00:29:40,400 --> 00:29:41,800
Speaker 1: do they want to buy us treasures because they know

608
00:29:41,800 --> 00:29:43,800
Speaker 1: they're going to be debased at the same time. So

609
00:29:44,160 --> 00:29:46,480
Speaker 1: I guess we'll just go back to the way we

610
00:29:46,600 --> 00:29:49,080
Speaker 1: used to do it, and we'll go back to commodity money.

611
00:29:49,320 --> 00:29:51,680
Speaker 1: I'll take the gold, I'll leave my oil in the ground.

612
00:29:51,840 --> 00:29:53,960
Speaker 1: I'll buy the minerals right now while I still can.

613
00:29:56,880 --> 00:29:59,840
Speaker 1: The problem with that is that that worked in a

614
00:30:00,040 --> 00:30:02,520
Speaker 1: world from one hundred years ago, that worked in the

615
00:30:03,040 --> 00:30:07,840
Speaker 1: industrial age, and so it's what I call de evolution.

616
00:30:08,920 --> 00:30:12,240
Speaker 1: We're not evolving. So while the world is globalizing, why

617
00:30:12,480 --> 00:30:16,360
Speaker 1: technology is changing the world that we're in because trust

618
00:30:16,440 --> 00:30:18,960
Speaker 1: is lost. The option is we go back to the

619
00:30:19,040 --> 00:30:21,520
Speaker 1: dark ages, the Stone not the Dark Ages, maybe more

620
00:30:21,560 --> 00:30:24,000
Speaker 1: like the Stone Ages, and we have to trade physical

621
00:30:24,240 --> 00:30:29,880
Speaker 1: rocks old school, or there could be another option. Now

622
00:30:30,040 --> 00:30:31,720
Speaker 1: before we dump to the other option, let's just talk

623
00:30:31,760 --> 00:30:33,760
Speaker 1: about how this works. Let's just set this up for

624
00:30:33,800 --> 00:30:35,680
Speaker 1: a minute. So there's a lot of people talking about

625
00:30:35,680 --> 00:30:37,720
Speaker 1: going back to a gold standard. Like I said, Russia's

626
00:30:37,720 --> 00:30:39,920
Speaker 1: talking about going back to a gold standard. Of course,

627
00:30:39,960 --> 00:30:41,840
Speaker 1: you have lots of people, Peter Shift talking about going

628
00:30:41,880 --> 00:30:43,880
Speaker 1: back to a gold standard. So how would this work.

629
00:30:44,360 --> 00:30:47,280
Speaker 1: Let's think about this for a second. Let's talk about

630
00:30:47,320 --> 00:30:50,240
Speaker 1: this for a second. So remember, we don't want the money,

631
00:30:50,240 --> 00:30:52,320
Speaker 1: We want the goods and services that money buys us,

632
00:30:52,520 --> 00:30:55,440
Speaker 1: and so really it's just a medium of exchange. If

633
00:30:55,480 --> 00:30:57,600
Speaker 1: we were going to go back to a gold standard,

634
00:30:57,840 --> 00:30:59,720
Speaker 1: what we would do is we would look at all

635
00:30:59,760 --> 00:31:02,160
Speaker 1: the dollars that are in circulation and we divide up

636
00:31:02,160 --> 00:31:04,080
Speaker 1: by all the gold that's in circulation, which will give

637
00:31:04,120 --> 00:31:08,480
Speaker 1: us a new dollar price of gold. So before we

638
00:31:08,480 --> 00:31:10,720
Speaker 1: got off the gold standard, well let's go back to

639
00:31:10,760 --> 00:31:14,400
Speaker 1: before they well, okay, so it's thirty five dollars per

640
00:31:14,560 --> 00:31:18,000
Speaker 1: ounce of gold. So that means that there was supposed

641
00:31:18,040 --> 00:31:20,840
Speaker 1: to be only thirty five dollars for every one ounce

642
00:31:20,840 --> 00:31:22,800
Speaker 1: of gold that was in the bank. But now they've

643
00:31:22,840 --> 00:31:25,280
Speaker 1: printed so many more dollars, so we now have to go, okay,

644
00:31:25,320 --> 00:31:28,000
Speaker 1: here's all the new dollars we have divided by the gold.

645
00:31:28,040 --> 00:31:31,080
Speaker 1: So we can see in the US, supposedly four Knox

646
00:31:31,160 --> 00:31:34,080
Speaker 1: has about eight thousand tons of gold supposedly we haven't

647
00:31:34,080 --> 00:31:37,200
Speaker 1: had it audited. I don't know. I'll let you guys

648
00:31:37,200 --> 00:31:39,000
Speaker 1: decide if that's true or not. It's about two hundred

649
00:31:39,000 --> 00:31:42,800
Speaker 1: and eighty two million ounces of gold. Now, if we

650
00:31:42,880 --> 00:31:46,440
Speaker 1: take the US mto the US money supply, there's about

651
00:31:46,480 --> 00:31:50,640
Speaker 1: twenty trillion dollars out there in circulation. So we take

652
00:31:50,640 --> 00:31:53,520
Speaker 1: the twenty trillion dollars we divided by the two hundred

653
00:31:53,520 --> 00:31:55,760
Speaker 1: and eighty two million ounces, which would give us a

654
00:31:55,760 --> 00:31:58,160
Speaker 1: new gold price of about seventy thousand dollars an ounce.

655
00:31:59,280 --> 00:32:01,480
Speaker 1: Pretty big gump. That's why a lot of people hold

656
00:32:01,480 --> 00:32:05,360
Speaker 1: gold waiting for that eventual day, maybe one day. If

657
00:32:05,360 --> 00:32:07,760
Speaker 1: we looked at it globally, we can see globally there's

658
00:32:07,800 --> 00:32:10,600
Speaker 1: about eighty seven trillion dollars of currency in the world,

659
00:32:11,080 --> 00:32:13,960
Speaker 1: and we can see there's about six billion ounces of gold.

660
00:32:14,120 --> 00:32:17,040
Speaker 1: We did globally, it's more about thirteen thousand dollars per

661
00:32:17,120 --> 00:32:19,960
Speaker 1: ounce of gold. Still pretty good. I don't know what

662
00:32:19,960 --> 00:32:21,680
Speaker 1: gold is that today twenty three hundred bucks an ounce

663
00:32:21,840 --> 00:32:24,640
Speaker 1: ish move it to thirteen thousand. Pretty good. But I

664
00:32:24,680 --> 00:32:26,719
Speaker 1: just want you to understand the mechanics of how that

665
00:32:26,760 --> 00:32:29,920
Speaker 1: works real quick. But again, as I said, it's not

666
00:32:29,960 --> 00:32:32,880
Speaker 1: going to work. And it can't work because remember all

667
00:32:32,960 --> 00:32:39,440
Speaker 1: the way back to Socrates, the attributes of money are portable, divisible, durable, recognizable, saleable,

668
00:32:39,440 --> 00:32:45,600
Speaker 1: et cetera. The key piece being portable, and unfortunately gold

669
00:32:45,640 --> 00:32:49,360
Speaker 1: is not very portable, not today, not in the information age.

670
00:32:49,520 --> 00:32:53,000
Speaker 1: Remember I talked about transaction times getting faster, faster, faster.

671
00:32:53,080 --> 00:32:55,400
Speaker 1: Today I can push a button on Amazon and I

672
00:32:55,400 --> 00:32:57,520
Speaker 1: can have something delivered to my house before the day

673
00:32:57,560 --> 00:33:01,959
Speaker 1: is over. Instant transaction times, but yet still take days.

674
00:33:02,360 --> 00:33:04,080
Speaker 1: If you guys run a business and run credit cards,

675
00:33:04,080 --> 00:33:06,160
Speaker 1: you know that it typically takes what's seventy two hours

676
00:33:06,200 --> 00:33:08,360
Speaker 1: at least before those funds show up in your account,

677
00:33:08,640 --> 00:33:10,800
Speaker 1: and even up to six months later they could be

678
00:33:10,880 --> 00:33:14,160
Speaker 1: charged back on a credit card. So we have instant transactions,

679
00:33:14,400 --> 00:33:17,880
Speaker 1: but yet our settlement time is still in the stone ages.

680
00:33:19,360 --> 00:33:21,920
Speaker 1: So it's incompatible with the world that we're in at

681
00:33:21,920 --> 00:33:27,720
Speaker 1: this point. So the re evolution might look like something different. Remember,

682
00:33:27,720 --> 00:33:31,080
Speaker 1: as I said earlier, problems or solutions are supposed to

683
00:33:31,080 --> 00:33:33,240
Speaker 1: come to problems that we have, and so I've set

684
00:33:33,240 --> 00:33:35,760
Speaker 1: this up. We have a lot of problems with inflation,

685
00:33:35,960 --> 00:33:39,360
Speaker 1: right the government is debasing at a very rapid rate inflation,

686
00:33:39,440 --> 00:33:41,600
Speaker 1: and so maybe it might make sense to have something

687
00:33:41,640 --> 00:33:46,880
Speaker 1: with a fixed supply. With Fiat and gold, there's no transparency.

688
00:33:47,000 --> 00:33:49,080
Speaker 1: Does China really have the gold in the vaults or

689
00:33:49,120 --> 00:33:51,800
Speaker 1: is it tungsten bars painted as gold? Does Fort Knox

690
00:33:51,800 --> 00:33:53,720
Speaker 1: really have the eight thousand tons or do they not?

691
00:33:53,800 --> 00:33:56,800
Speaker 1: And so there's no transparency, and so bitcoin offers us

692
00:33:56,840 --> 00:34:00,520
Speaker 1: an open and transparent base layer that everybody can see.

693
00:34:01,200 --> 00:34:02,920
Speaker 1: A big thing is that as the world has continued

694
00:34:02,920 --> 00:34:04,840
Speaker 1: to globalize, the global trade has continue to take off.

695
00:34:04,880 --> 00:34:07,959
Speaker 1: We've continued to flourish because of that global trade. But

696
00:34:08,000 --> 00:34:10,640
Speaker 1: the problem is that if everybody has their own different money,

697
00:34:10,960 --> 00:34:13,879
Speaker 1: how does that work? And so we might need something borderless.

698
00:34:14,040 --> 00:34:15,680
Speaker 1: I'm in the process of building a house down in

699
00:34:15,680 --> 00:34:18,760
Speaker 1: Mexico right now, and I've been seeing this firsthand. In Mexico,

700
00:34:18,800 --> 00:34:20,440
Speaker 1: the labor is cheap, but most of the stuff has

701
00:34:20,480 --> 00:34:23,120
Speaker 1: to be imported, and we're importing stuff from all around

702
00:34:23,120 --> 00:34:25,280
Speaker 1: the world. Some appliance has come from Europe, some tiles

703
00:34:25,280 --> 00:34:28,040
Speaker 1: coming from the US, different places, and the problem is

704
00:34:28,400 --> 00:34:30,839
Speaker 1: trying to figure out what the price will be in

705
00:34:30,880 --> 00:34:35,080
Speaker 1: the future. And so my builders in Mexico want to

706
00:34:35,120 --> 00:34:37,720
Speaker 1: price me in pesos, but they don't know what the

707
00:34:37,760 --> 00:34:40,279
Speaker 1: euro exchange rate will be or the dollar exchange what

708
00:34:40,280 --> 00:34:42,800
Speaker 1: will be in the future. Even at the gas station

709
00:34:43,160 --> 00:34:47,240
Speaker 1: they're speculators. So the official exchange rate is eighteen pesos

710
00:34:47,239 --> 00:34:49,200
Speaker 1: to one dollar, but at the gas station they give

711
00:34:49,239 --> 00:34:53,359
Speaker 1: me seventeen because they don't know what the exchange rate

712
00:34:53,400 --> 00:34:55,560
Speaker 1: will be in a week by the time they get

713
00:34:55,560 --> 00:34:57,680
Speaker 1: those to the bank and change them in. And so

714
00:34:57,760 --> 00:35:01,000
Speaker 1: everybody's forced with all these different dollars. All should be

715
00:35:01,000 --> 00:35:03,239
Speaker 1: controlled in these borders. We need something border lists. The

716
00:35:03,280 --> 00:35:04,920
Speaker 1: big one that I've been talking about here is this

717
00:35:04,960 --> 00:35:08,960
Speaker 1: permission system. So in order to use the Fiat slash

718
00:35:09,000 --> 00:35:12,400
Speaker 1: gold system, it requires permission to join, and a lot

719
00:35:12,400 --> 00:35:14,360
Speaker 1: of people don't know if you haven't left the United States.

720
00:35:14,480 --> 00:35:17,600
Speaker 1: Is there's one point five billion people in the world

721
00:35:17,719 --> 00:35:20,920
Speaker 1: right now today, one point five billion, I should say adults,

722
00:35:21,080 --> 00:35:23,640
Speaker 1: not people. One point five billion adults who have no

723
00:35:23,800 --> 00:35:27,520
Speaker 1: access to banking because they don't have permission to join.

724
00:35:27,560 --> 00:35:29,239
Speaker 1: If you open a bank account, you know, it takes

725
00:35:29,280 --> 00:35:31,839
Speaker 1: a paperwork stack about that dick, and they don't have that.

726
00:35:31,920 --> 00:35:35,520
Speaker 1: So for example, they just happen to be born in

727
00:35:35,560 --> 00:35:38,320
Speaker 1: a country that has sanctions on them, No bank acount

728
00:35:38,360 --> 00:35:42,040
Speaker 1: for you, like the soup Nazi on Seinfeld. You know,

729
00:35:42,600 --> 00:35:45,400
Speaker 1: maybe they had to flee their country because it got

730
00:35:45,480 --> 00:35:47,480
Speaker 1: bombed and they don't have the paperwork they need to

731
00:35:47,520 --> 00:35:50,160
Speaker 1: get a bank account. No bank account for you. Maybe

732
00:35:50,200 --> 00:35:51,759
Speaker 1: they live in a country. You know, half the world

733
00:35:51,840 --> 00:35:53,839
Speaker 1: lives on less than five dollars a day. Maybe they

734
00:35:53,840 --> 00:35:55,880
Speaker 1: don't have enough money to pay for a bank account

735
00:35:55,880 --> 00:35:59,640
Speaker 1: every single month, No bank count for you. So the

736
00:35:59,719 --> 00:36:02,319
Speaker 1: world it has this permission system, So we might want

737
00:36:02,320 --> 00:36:05,759
Speaker 1: a system that's permission lists, like with bitcoin, where I

738
00:36:05,760 --> 00:36:08,080
Speaker 1: can just download an app right now, we can instantly send, send,

739
00:36:08,080 --> 00:36:11,680
Speaker 1: and received money instantly. And then ultimately we have this

740
00:36:11,760 --> 00:36:14,040
Speaker 1: trust ledger, the bug that I called it, a trust

741
00:36:14,160 --> 00:36:16,839
Speaker 1: bug that was put in there. And so whether it's

742
00:36:17,000 --> 00:36:19,480
Speaker 1: back to Fiat or whether it's back to gold or

743
00:36:19,480 --> 00:36:21,440
Speaker 1: back to any commodity for that matter, it's always going

744
00:36:21,480 --> 00:36:24,319
Speaker 1: to require trust. Does this person really have the gold

745
00:36:24,360 --> 00:36:26,400
Speaker 1: they said they have and can I trust them to

746
00:36:26,400 --> 00:36:28,160
Speaker 1: give it to me? You know, like those movies like

747
00:36:28,160 --> 00:36:29,600
Speaker 1: The Drug Deal, like give me the money, don't give

748
00:36:29,640 --> 00:36:31,239
Speaker 1: me the drugs, So like how do we work in

749
00:36:31,280 --> 00:36:33,160
Speaker 1: a world like that? And so it might make sense

750
00:36:33,160 --> 00:36:34,880
Speaker 1: that we have a system that's trust the list that

751
00:36:34,880 --> 00:36:37,120
Speaker 1: we don't have to trust. And then ultimately here at

752
00:36:37,120 --> 00:36:40,520
Speaker 1: Freedom Fest, we'll talk about centralized control. So all Fiat,

753
00:36:40,600 --> 00:36:44,759
Speaker 1: all gold requires that centralized system that somebody manages it.

754
00:36:45,600 --> 00:36:49,000
Speaker 1: And so ultimately, in a world where trust is lost,

755
00:36:49,600 --> 00:36:51,719
Speaker 1: in a world where we can no longer trust each other,

756
00:36:54,200 --> 00:36:57,960
Speaker 1: what we need is a decentralized system that nobody can control.

757
00:36:58,000 --> 00:36:59,919
Speaker 1: You See I talk about the bricks having their own current.

758
00:37:00,040 --> 00:37:02,200
Speaker 1: See each one of those own bricks nations wants to

759
00:37:02,280 --> 00:37:04,719
Speaker 1: use their own currency, but none of them trust each other. Well,

760
00:37:04,760 --> 00:37:06,480
Speaker 1: I certainly don't want to trust the United States to

761
00:37:06,480 --> 00:37:08,800
Speaker 1: hold my money anymore, but I don't really trust Russia

762
00:37:08,880 --> 00:37:11,520
Speaker 1: or China either, And why would I want to hold

763
00:37:11,719 --> 00:37:14,799
Speaker 1: whatever boulevar or whatever currency you have? The Turkish lira

764
00:37:14,840 --> 00:37:17,160
Speaker 1: that's losing money very fast. And so ultimately we need

765
00:37:17,200 --> 00:37:22,279
Speaker 1: a decentralized system that nobody can control. And really that

766
00:37:22,480 --> 00:37:25,600
Speaker 1: is the digital revolution. So for those of you guys

767
00:37:25,640 --> 00:37:28,479
Speaker 1: don't know how bigcoin works, I can basically remember these

768
00:37:28,560 --> 00:37:32,160
Speaker 1: like twelve words in my head right here, and I

769
00:37:32,160 --> 00:37:34,120
Speaker 1: can get on a computer anywhere in the world plug

770
00:37:34,160 --> 00:37:37,320
Speaker 1: those twelve words in and have my entire bank account,

771
00:37:37,320 --> 00:37:41,080
Speaker 1: my entire balance with me instantly, a system that nobody controls,

772
00:37:41,080 --> 00:37:43,400
Speaker 1: the system that nobody has access to other than myself.

773
00:37:43,760 --> 00:37:48,879
Speaker 1: It's a digital revolution. We've seen everything become demonetized or materialized,

774
00:37:48,920 --> 00:37:52,280
Speaker 1: I should say, books, music, movies, etc. And the last

775
00:37:52,280 --> 00:37:55,759
Speaker 1: thing left we finally have is value. Now real quick,

776
00:37:55,800 --> 00:37:57,959
Speaker 1: I'm running out of time. I got like two minutes left.

777
00:37:58,480 --> 00:38:01,000
Speaker 1: Let's talk about where it's going because a lot of people,

778
00:38:01,480 --> 00:38:04,120
Speaker 1: maybe the most common question I hear is it's too late,

779
00:38:04,400 --> 00:38:07,319
Speaker 1: it's gone too far. Maybe I should try to find

780
00:38:07,320 --> 00:38:09,960
Speaker 1: something cheaper and something like that. Now, there's a whole

781
00:38:09,960 --> 00:38:12,440
Speaker 1: bunch of ways we can think about bitcoin's future value.

782
00:38:12,719 --> 00:38:14,360
Speaker 1: One way that we do it I run a fund.

783
00:38:14,640 --> 00:38:16,560
Speaker 1: You can see it marked on here, Bitcoin Opportunity Fund.

784
00:38:16,600 --> 00:38:18,880
Speaker 1: It's a venture fund. And a way a venture capitalists

785
00:38:18,880 --> 00:38:21,520
Speaker 1: would invest money is you're trying to invest into a

786
00:38:21,560 --> 00:38:24,560
Speaker 1: startup and imagine how much this company could be worth

787
00:38:24,560 --> 00:38:26,279
Speaker 1: in the future, and you think about it in a

788
00:38:26,280 --> 00:38:28,600
Speaker 1: way of how much value is it going to pull?

789
00:38:28,680 --> 00:38:30,440
Speaker 1: So if I was going to invest into Uber, how

790
00:38:30,520 --> 00:38:32,960
Speaker 1: much value will to pull from Taxis or from limos

791
00:38:33,040 --> 00:38:35,160
Speaker 1: or from Vans et cetera. And so if we think

792
00:38:35,160 --> 00:38:37,920
Speaker 1: about bitcoin, bitcoin's a lot of things, but it's not

793
00:38:38,000 --> 00:38:43,080
Speaker 1: competing against new technologies. What bitcoin's competing against is value itself,

794
00:38:43,160 --> 00:38:44,640
Speaker 1: which is why I wanted to build that up from

795
00:38:44,680 --> 00:38:47,560
Speaker 1: the beginning. Right, it's competing against value itself. And so

796
00:38:47,560 --> 00:38:50,040
Speaker 1: if we think about it, people store their well, store

797
00:38:50,080 --> 00:38:52,560
Speaker 1: their value, and a lot of things like gold, for example,

798
00:38:52,600 --> 00:38:56,160
Speaker 1: it's about a twelve trillion dollar market cap. Cars and collectibles,

799
00:38:56,200 --> 00:38:58,440
Speaker 1: I told you it's about six trillion dollars, fine art

800
00:38:58,440 --> 00:39:00,560
Speaker 1: eighteen trillion. A lot of people hold their wealth in

801
00:39:00,600 --> 00:39:02,920
Speaker 1: the stock market, your four to one K, you're mutual fund,

802
00:39:02,960 --> 00:39:05,880
Speaker 1: one hundred and fifteen trillion. There real estate. Obviously you

803
00:39:05,920 --> 00:39:07,279
Speaker 1: have your house, but a lot of people invest in

804
00:39:07,320 --> 00:39:09,239
Speaker 1: the real estate as well. Three hundred and thirty trillion there,

805
00:39:09,440 --> 00:39:11,399
Speaker 1: bonds three and a trillion. That adds up to about

806
00:39:11,560 --> 00:39:15,960
Speaker 1: nine hundred trillion dollars of assets that people just use

807
00:39:16,120 --> 00:39:18,840
Speaker 1: to store their wealth, just their savings. If that makes sense.

808
00:39:19,400 --> 00:39:22,840
Speaker 1: So then we might ask ourselves, from a venture capitalist perspective,

809
00:39:23,960 --> 00:39:26,399
Speaker 1: how much value do I think that a new store

810
00:39:26,520 --> 00:39:28,439
Speaker 1: value that might be superior to all of those things

811
00:39:28,520 --> 00:39:31,520
Speaker 1: might pull? Well, maybe it gets a little bit from goal.

812
00:39:31,600 --> 00:39:34,759
Speaker 1: Maybe it gets five percent from collectibles, five percent from art.

813
00:39:34,920 --> 00:39:37,880
Speaker 1: Maybe it pulls fifteen percent from the stock market, fifteen

814
00:39:37,920 --> 00:39:39,480
Speaker 1: percent from real estate. We're not saying it's going to

815
00:39:39,480 --> 00:39:41,560
Speaker 1: take one hundred percent, but maybe it pulls a little

816
00:39:41,560 --> 00:39:44,000
Speaker 1: bit from each one of those. About every fifty years,

817
00:39:44,000 --> 00:39:47,040
Speaker 1: we have a new technology that changes the world, and

818
00:39:47,120 --> 00:39:50,040
Speaker 1: so this is where we're witnessing bitcoin take off right here.

819
00:39:50,760 --> 00:39:54,360
Speaker 1: And ultimately, again, are we too late? New technology cycles

820
00:39:54,400 --> 00:39:57,120
Speaker 1: work in these fifty year cycles like this, and we

821
00:39:57,160 --> 00:40:00,640
Speaker 1: are right about here right now. So it's just barely

822
00:40:00,680 --> 00:40:03,439
Speaker 1: getting going right here, about twenty twenty three, twenty twenty four,

823
00:40:03,719 --> 00:40:06,040
Speaker 1: and it's just getting going. And I'll leave you with

824
00:40:06,080 --> 00:40:09,319
Speaker 1: this slide. So the creator of bitcoin, Satoshi Nakamoto, he

825
00:40:09,400 --> 00:40:11,239
Speaker 1: left us a lot of messages on message boards, and

826
00:40:11,239 --> 00:40:13,600
Speaker 1: he left this quote right here, and he said it

827
00:40:13,719 --> 00:40:16,920
Speaker 1: might make sense just to get some in case it

828
00:40:16,960 --> 00:40:20,960
Speaker 1: catches on. So I'll leave with that. I ran out

829
00:40:21,000 --> 00:40:22,359
Speaker 1: of times, so how many questions, But I'll be hanging

830
00:40:22,400 --> 00:40:28,040
Speaker 1: out if you have any, So thank you.