Speaker 1: Hello, and welcome to another episode of The Marquis Show.
Speaker 1: When we talk about each and every week, we talked
Speaker 1: about the way the world is changing. Of course, we
Speaker 1: talk about the technological revolution, the decentralized revolution as I
Speaker 1: like to call it. As we're witnessing the world change
Speaker 1: through the lens of politics, finance, and technology, and the
Speaker 1: world of finance. I mean, all three of these are
Speaker 1: changing rapidly. Of course they all affect each other. But
Speaker 1: we are witnessing something going on this week, something massive,
Speaker 1: something for the history books. As a matter of fact,
Speaker 1: history books will be written about this point in time
Speaker 1: exactly what's going on. And I am talking about one
Speaker 1: of the biggest banks in the world, a sovereign bank,
Speaker 1: the Bank of England, has broke. That's a big deal.
Speaker 1: This is a really big deal. We are witnessing central
Speaker 1: banks around the world breaking. We're not talking about, you know,
Speaker 1: in two thousand and eight during the Great Financial Crash
Speaker 1: when the investment banks were down. We're talking about sovereign banks,
Speaker 1: in national banks, central banks, and they are breaking. So
Speaker 1: we want to talk about that. The way the financial
Speaker 1: system is changing. Obviously the political side that's scrambling, and
Speaker 1: of course the technology that's sitting there waiting in the
Speaker 1: winds uh and appears to be ready to move into
Speaker 1: prime time. And of course we are talking about bitcoin,
Speaker 1: and so we're gonna break all of this down. I
Speaker 1: want to break down exactly what's going on with the
Speaker 1: Bank of England, what happened, how the contagion is spreading
Speaker 1: to all the other central banks. I want to go
Speaker 1: back through some of the history of money so you
Speaker 1: can understand exactly how this works and why this is happening,
Speaker 1: of course, and then we'll get back into the currency
Speaker 1: wars that are happening now between all the banks, the
Speaker 1: danger that we're witnessing in China, Japan, the UK, of
Speaker 1: course in the United States. And we'll talk about bitcoin.
Speaker 1: Is it ready to um make its prime time appearance?
Speaker 1: Could it be a recipient or a beneficiary of all
Speaker 1: of this? And so we've got a lot cover. We're
Speaker 1: gonna get through all this today, hopefully if I can
Speaker 1: talk fast enough. So if you're just tuning in, you're
Speaker 1: listening to the Markmas Show, and we are digging into it. So,
Speaker 1: like I said, the big news, the Bank of England
Speaker 1: has broke. Now the Bank of England's broke before. As
Speaker 1: a matter of fact, everybody's favorite government overthrower, George Soros,
Speaker 1: he got famously rich from breaking the Bank of England
Speaker 1: in a single day, making a billion dollars in a
Speaker 1: single day. And you know, central banks they're destined to fail.
Speaker 1: You can't create money from thin air. Just doesn't work. Now,
Speaker 1: it does for a long enough period of time until
Speaker 1: it distorts things so bad that then they get inevitably
Speaker 1: so bad that they break. And that's kind of where
Speaker 1: we're at. We saw the Bank of England break. Now, um,
Speaker 1: the UK still there, the Bank of England still there,
Speaker 1: but they have Basically, it's like if you're playing a
Speaker 1: game of poker. They've put it all in. All chips
Speaker 1: are in, and if they're not able to hold the
Speaker 1: US up right now, which I don't think they'll be
Speaker 1: able to, then all trust is gone and they're going
Speaker 1: to disappear. That's why they've had to put all chips in.
Speaker 1: So let's talk about that for a little bit and
Speaker 1: then we'll get into how this works. Like I said,
Speaker 1: I want to go through some of the history, but
Speaker 1: real fast, let's just talk about the history a little
Speaker 1: bit so you can understand this I'd like to talk
Speaker 1: about it from a from a first principle's level. We
Speaker 1: can break this down simply where you can understand it. Um,
Speaker 1: then you can understand it, and it's more complex. But
Speaker 1: if you try to understand it, it's more complex. It's
Speaker 1: it's very difficult to understand. And so um central banks,
Speaker 1: the Bank of England being the first central bank that
Speaker 1: was creating the late sixteen hundreds. Now, UM, there's a
Speaker 1: great book. I believe it was written by Murray Rothbart.
Speaker 1: You can find it on mesas dot org for free.
Speaker 1: It's the Mystery of Central Banking. Great book, highly recommended.
Speaker 1: When I repeat it again, Mystery of Central Banking. You
Speaker 1: go to mesas dot org, m I s ees dot org.
Speaker 1: You can download it for free. Of course you can
Speaker 1: buy it as well. You can download the PDF version
Speaker 1: or or buy the physical book to be sent to
Speaker 1: your house. Um. And so in in that book they
Speaker 1: really document how this was put together. And so let
Speaker 1: me just give you this first. Actually, um, yeah, let's
Speaker 1: let's go back a little bit further. Let's go back
Speaker 1: to let's let's go back, let's go back a thousand
Speaker 1: years and then well then we'll jump to the creation
Speaker 1: of the Bank of England. That's breaking right now. So
Speaker 1: if we go back in time, gold has been money
Speaker 1: for most of recorded history. Of course, before money, before
Speaker 1: there was a medium of exchange, we just had barter.
Speaker 1: So we'd trade uh, you know, food, things like that.
Speaker 1: We trade a cow for a chicken, we'd trade clothes
Speaker 1: for wood, things like that. Since we had barter, of course,
Speaker 1: that's very inefficient and it only works in very small,
Speaker 1: localized economies, and so we needed a price for things,
Speaker 1: and we needed to have this medium of exchange that
Speaker 1: could communicate this price. And so it'll allow us to
Speaker 1: have this trade. Media's exchange are emergent. And so if
Speaker 1: you don't want my chicken, my goat, um, I would
Speaker 1: my clothes? Um? Then would you take this other thing instead?
Speaker 1: And this became a medium of exchange. It's not it's
Speaker 1: not the thing I wanted, but it allows me to
Speaker 1: um use that to get what I do want. So
Speaker 1: I like to say, um, it's it's very controversial that
Speaker 1: you don't want money, and people go, what what do
Speaker 1: you who do you mean? Of course I want money.
Speaker 1: I want as much money as I can get. No,
Speaker 1: you don't. What you want is the things that money
Speaker 1: will buy you, that's what you want. Money allows us
Speaker 1: to park our our value are stored up energy until
Speaker 1: such a time we're ready to deploy that to get
Speaker 1: actually what it is that we want, which is a vacation,
Speaker 1: a dinner out, a new car, new clothes, etcetera. And
Speaker 1: so what we want is the things, but that medium
Speaker 1: exchange allows us to get all of those things or
Speaker 1: like I said, store our energy until we're ready to
Speaker 1: do that. Now, Um, what we use is as this
Speaker 1: medium exchange has evolved, and it's been feathers and seashells
Speaker 1: and rocks and all types of things. In gold became
Speaker 1: the best medium exchange. But before gold became a media exchange,
Speaker 1: we had lots of things. Um. And really what happened
Speaker 1: is we saw all of these different media exchange. Barley
Speaker 1: was one medium exchange that worked for a really long time. Um,
Speaker 1: and then we started getting coins and so then there
Speaker 1: was a new technology. Remember it's always technology that changes
Speaker 1: the world through thousands of years of history, it's always technology,
Speaker 1: which is why we look at the world changing through
Speaker 1: three lenses, political, financial, and technological. Now, um, this technology
Speaker 1: that was created was coins, and so we could take medals.
Speaker 1: We could take copper, we could take a gold, we
Speaker 1: could take solver, and we could make coins out of them.
Speaker 1: Now this became a good medium exchange. The problem is
Speaker 1: is who made the coin and how pure is the
Speaker 1: coin and do we recognize it? So it still worked
Speaker 1: in a very regional location, in a in a regional area,
Speaker 1: obviously some people had more access to these medals than
Speaker 1: other areas did, which then allowed them to have more
Speaker 1: wealth because they could print more of these coins. Um.
Speaker 1: But that was a technological revolution, a technological breakthrough that
Speaker 1: really happened and allowed global trade to speed up. Now,
Speaker 1: the thing that's important to understand, and we're gonna come
Speaker 1: back to this theme over and over and over, is
Speaker 1: that as the money supply increases, so does the rest
Speaker 1: of the economy. So if there's more um, whatever, gold, silver, whatever,
Speaker 1: coins to go around, then more people will go out
Speaker 1: and do more things. I'll make more clothes, I'll make
Speaker 1: more food, I'll build more houses because there's more money
Speaker 1: to go around. So as the money supply increases UM,
Speaker 1: so do typically the economic output of that area as well.
Speaker 1: But it also increases inflation. That means the prices going up,
Speaker 1: so you Remember, we don't want money. What we want
Speaker 1: is the things that money buys us, the goods and services.
Speaker 1: So you would take all the goods and services. And
Speaker 1: so in a small little economy, you have some coconuts,
Speaker 1: you have some fish, and you have some guy that
Speaker 1: can help you build your hut. That's it, right. If
Speaker 1: you increase the money, then it increases the demand for
Speaker 1: those things, the coconut, the fish, and the guy that
Speaker 1: can build the hut, and so all aso. More money
Speaker 1: creates more demand. But we didn't increase the amount of
Speaker 1: fish or the coconuts or the guys that can build
Speaker 1: the houses, and so it pushes the prices of those
Speaker 1: things up. More money equals more demand equals prices going higher.
Speaker 1: All right, that makes sense. So throughout history we can
Speaker 1: revisit this over and over and over. As the money
Speaker 1: supply increases, it creates inflation. Alright, you hear about inflation
Speaker 1: all over. Now you understand a Now this work. So
Speaker 1: now that we've kind of developed that, let's jump back
Speaker 1: to about fifteen hundred eight. It's about five hundred years
Speaker 1: ago or so, and there was a big discovery that
Speaker 1: changed the world. It changed the power balance of the world.
Speaker 1: It changes the inflation of the world, and uh, it
Speaker 1: really sent the world in this direction. Before we get
Speaker 1: into that, just letting you know. If you're just tune in,
Speaker 1: you're listening to the Mark Moss Show. We're talking about
Speaker 1: the de centralized revolution, the way the world is changing
Speaker 1: right now before of our eyes. Were talking about the
Speaker 1: Bank of England just failed. And we're setting up the
Speaker 1: history so you can understand how this works, and then
Speaker 1: we'll explain what's going on and what you should be
Speaker 1: doing to prepare for it. Um So, I got a
Speaker 1: lot to cover. Hopefully we can get through all this.
Speaker 1: I'm we have to talk really really fast. You do
Speaker 1: not want to miss this, so don't go away. I'm
Speaker 1: gonna be back in just a minute. All right, welcome back.
Speaker 1: You are listening to the Mark ma Show. We're talking
Speaker 1: about the decentralized revolution, the way the world is breaking
Speaker 1: apart right before of our eyes. Of course, we look
Speaker 1: at it through the lens of politics, finance, and technology,
Speaker 1: and that technology being bitcoin, the decentralized technology, which of
Speaker 1: course changes the financial system and changes the political system.
Speaker 1: Now today we are talking about specifically, we're talking about
Speaker 1: the central banks around the world, are are failing. The
Speaker 1: Bank of England just broke this week. We're talking about history.
Speaker 1: So we're just stopping at fift hundred and so the
Speaker 1: world that we have this global trade going on, we
Speaker 1: have these coins and all of a sudden, there was
Speaker 1: a discovery in the fifteen hundreds by Spain. Spain was
Speaker 1: out across the world looking for more wealth, more riches, right,
Speaker 1: and they found it. They found a m the Spanish
Speaker 1: conquistadores um found the Inca Empire, you know, in South
Speaker 1: America in the fifteen hundreds, and they found the richest
Speaker 1: silver deposit in the world on a high mountains which
Speaker 1: is about fifteen thousand feet way up there, way up there.
Speaker 1: And the Spaniards called this the Sero Rico or the
Speaker 1: Rich Mountain, and it was over thirteen thousand feet now.
Speaker 1: Once they found that, then this mining town boomed. Um.
Speaker 1: They you know, started digging these deep holes day on,
Speaker 1: you know, enslaved the local indigenous people there, made them
Speaker 1: get all of this silver out of the ground. There
Speaker 1: was also lead in there, which of course is really
Speaker 1: bad for you. Lots of it was. It was very
Speaker 1: hazardous work, let's just call it that. But the but
Speaker 1: the Spanish were able to get all of this silver
Speaker 1: out of the ground, and it was the largest silver
Speaker 1: discovery in the world at that time. And then they
Speaker 1: took all that Spain they I'm sorry that all that silver,
Speaker 1: they took it back to Spain. Um and it increased
Speaker 1: the money supply between Let's see, during the sixteenth century,
Speaker 1: the population of Potosi. Potosi is where they had the
Speaker 1: silver mine. It grewed over two thousand and the silver
Speaker 1: mind became the source of sixty percent of the world's silver.
Speaker 1: Between hundred produced all known silver produced in the world,
Speaker 1: so massive, So it became the source of six in
Speaker 1: the world silver. So it exploded the money supply. When
Speaker 1: you explode the money supply, what happens again, you have
Speaker 1: more money chasing the same goods, which creates inflation. Also,
Speaker 1: more people will go to make more goods because there's
Speaker 1: more money. When you have a lot of money, you
Speaker 1: buy stuff you don't necessarily need. You buy stuff that
Speaker 1: you want. And if you have even more money and
Speaker 1: people will offer you stuff, you're like, oh sure, I'll
Speaker 1: take that too. And so it created this massive growth,
Speaker 1: massive prosperity. It was a good thing. Um massive trade,
Speaker 1: massive growth, massive prosperity, massive progress, all types of new
Speaker 1: products and tools and inventions and all of these things.
Speaker 1: And inflation because as you inflate the money supply, you
Speaker 1: get it. So it's a it's a double edged sword. Yes,
Speaker 1: you get the growth, but you also get the prices
Speaker 1: going up. You also get the inflation. Now we can
Speaker 1: fast forward a few hundred years, Like I said that
Speaker 1: ghos to about the early eighteen hundreds, and in the
Speaker 1: early eighteen hundreds, Um, something else happened. Now what just
Speaker 1: real quick to highlight this. What happened is all the
Speaker 1: silver came into the world and then the mind started
Speaker 1: to run out. So we were increasing the money supply
Speaker 1: for a long time, and we had massive growth, growth, growth,
Speaker 1: growth at a breakneck pace. Right, everything is going up
Speaker 1: in value, Everything is exploding, more products, more services, all
Speaker 1: these things. But then mind starts running out of silver.
Speaker 1: So the money supply, the silver is adding to the
Speaker 1: world's supply at a breakneck speed. Growth, prosperity, prices everything
Speaker 1: at a breakneck speed, and then all of a sudden,
Speaker 1: the money starts running out. The money supply starts going down,
Speaker 1: which then causes massive contraction. Now you have all these
Speaker 1: people that need all these things, that want all these things,
Speaker 1: that are trying to sell all these things, and now
Speaker 1: there's not enough money to go around. Okay, that's the theme.
Speaker 1: You increase the money supply, you get massive booms. You
Speaker 1: decrease the money supply, you get the opposite of that,
Speaker 1: which is a massive bust. All right, So we're gonna
Speaker 1: follow this all the way through to what's happening to
Speaker 1: the Bank of England right now today. Now, going back
Speaker 1: here we are, eighteen hundreds were in England and Sir
Speaker 1: Isaac Newton you might have heard it and before, and
Speaker 1: Sir Isaac Newton, Um, he came up with, uh, a
Speaker 1: new way to get metal and that was the gold,
Speaker 1: the gold standard. So um he said, hey, let's uh,
Speaker 1: let's use this new type of money. We're gonna move
Speaker 1: to gold. And so England did, uh. They are able
Speaker 1: to get able to get more gold into the system.
Speaker 1: Gold took over at a higher volume or I'm sorry,
Speaker 1: higher value than what the silver did, and so it
Speaker 1: took off. The United States was formerly on a bi
Speaker 1: metal standards. They're using gold and silver at the time. Um.
Speaker 1: They switched over to gold in eighteen thirty four, UM,
Speaker 1: and then really, by the end of the eighteen hundreds
Speaker 1: of Congress passed a gold Standard Act um, and so
Speaker 1: in eighteen four the United States went under gold standard,
Speaker 1: fixed the price of gold at twenty dollars per ounce um,
Speaker 1: and the rest of the world started moving on to
Speaker 1: a gold standard. Now, Um, China, just a tidbit note here,
Speaker 1: China has said, no, we're not moving to the gold standard.
Speaker 1: We're gonna stay on the silver standard. We don't want
Speaker 1: that gold. We're gonna stick with what we have silver.
Speaker 1: Because they had so much silver, they didn't want to
Speaker 1: give up their silver, and they lost their position in
Speaker 1: the world. Because the value of silver plummeted. Everyone moved
Speaker 1: to gold now again. So that so the amount of
Speaker 1: gold exploded. Wealth explode again. So the money supply had
Speaker 1: dipped and now started going back up again again. Massive growth,
Speaker 1: massive prosperity, massive inflation. Prices are going up, we had
Speaker 1: more things to buy. Then what happens is then we
Speaker 1: go into World War One, and um, this is where
Speaker 1: we'll go to the bank, the creation of the Bank
Speaker 1: of England. We we didn't skip. We skipped that part.
Speaker 1: And so in the late six hundreds, back to the
Speaker 1: mystery of central banking. Um, England was going to war
Speaker 1: with France and they needed more money, and you can't
Speaker 1: just go create more silver or gold out of thin air,
Speaker 1: and they didn't have it. So a group of bankers,
Speaker 1: so at the time, kings would borrow money from the
Speaker 1: rich people, and they'd borrow money, typically for social programs
Speaker 1: or most likely for war. And so they needed money
Speaker 1: for the war, and so the so the king said, hey,
Speaker 1: rich guys, we need money. We need money for this
Speaker 1: war with France. And the and the rich guy said, hey, okay, sure,
Speaker 1: no problem, we got you, We got your back, don't worry.
Speaker 1: Here's what we're gonna do though, Um, we're going to
Speaker 1: give you as much money as you want. A matter
Speaker 1: of fact, we're gonna give you an unlimited supply of money.
Speaker 1: And they're the King's like, wow, that's awesome, great, cool,
Speaker 1: let's do it. And they said, but here, here's the catch.
Speaker 1: Here's what we're gonna do. We're going to create our
Speaker 1: own bank. It's called the Bank of England, and we're
Speaker 1: going to create our own form of money, our paper money,
Speaker 1: and we're going to give you as much of that
Speaker 1: money as you want. The catches is that you have
Speaker 1: to tell the people in England that UM our bank
Speaker 1: is recognized by the crown. UM, it's by the government.
Speaker 1: We are the only bank, and they have to use
Speaker 1: our money. And if you do that, you tell them
Speaker 1: that our bank is the is the bank they who
Speaker 1: do use and they have to use our fake money,
Speaker 1: then we'll give you as much of this fake money
Speaker 1: as you wanted. Which, when you understand it said that way,
Speaker 1: it sounds like a big scam, doesn't it. And if
Speaker 1: you think it does sound like a big am, than
Speaker 1: you are onto something. And of course so the king
Speaker 1: said sharifying, okay, your bank is I recognized. We use
Speaker 1: your money, and they'll take more of it. They got
Speaker 1: all this money, they went into the war, into World
Speaker 1: War one UM, and they printed all this fake money.
Speaker 1: They didn't have enough gold um, which was the real money.
Speaker 1: They printed all this fake money, and then at the
Speaker 1: end of the war they didn't have the money they needed.
Speaker 1: So the money supply went up, it expanded, and then
Speaker 1: the money supply shrank and it went into a massive
Speaker 1: depression that led into the Great Depression in the United States.
Speaker 1: I want to talk to you the rest of the way,
Speaker 1: the way through this, We're gonna skip forward and show
Speaker 1: you the problems that we have today because the UK,
Speaker 1: the Bank of England just broke this week. China's running
Speaker 1: out of money, Japan's running out of money, and yes,
Speaker 1: even the United States is running out of money. That's
Speaker 1: why the price of everything are dropping. The money supply
Speaker 1: is decreasing. So we're gonna talk about that and more.
Speaker 1: You're listening to the Mark Moss Show. We talked about
Speaker 1: the decentralized Revolution, trying to explain to you the way
Speaker 1: the world is changing right now, and you better be prepared.
Speaker 1: I got a whole lot to cover when I get back,
Speaker 1: so don't go away, all right, Welcome back. You are
Speaker 1: listening to the Mark Moas Show, and we are talking
Speaker 1: about We're talking about the world changing right before your
Speaker 1: very eyes. And if you're not paying attention, maybe you
Speaker 1: don't understand what's going on. So we look at it
Speaker 1: through the lens of politics, finance, and technology. And today
Speaker 1: we're talking about the financial markets. Um, they've broken this week,
Speaker 1: and we're talking about how we got here. So what
Speaker 1: happened is uh, all this gold was needed to fight
Speaker 1: the war. The United States basically stayed out of the war.
Speaker 1: It was all happening over in Europe, and so England
Speaker 1: and France and Germany, Russia, they're all fighting, they're all
Speaker 1: destroying each other's um countries. The US is over here
Speaker 1: um getting rich because we have all the we can make,
Speaker 1: all the food, we have all the energy. We're selling
Speaker 1: all this stuff over to Europe, and so as we're
Speaker 1: sending them all the supplies for the war, they're sending
Speaker 1: us all the gold. And at the end of the war,
Speaker 1: the US, at the end of World War two, the
Speaker 1: US had all the gold because they stayed out of
Speaker 1: the war for the most part. They got engaged later,
Speaker 1: but for the most part, and we didn't are the
Speaker 1: war happened in Europe, so the United States didn't get
Speaker 1: torn down, we didn't get d industrialized, so we didn't
Speaker 1: need all the money to rebuild everything. But over in
Speaker 1: Europe they destroyed everybody's countries. They spent all their gold,
Speaker 1: and now they had to rebuild everything, and they had
Speaker 1: these massive debts. So the US ended up with the
Speaker 1: majority about of the gold in the world at the time.
Speaker 1: And so they said, okay, hey, here's the new standards,
Speaker 1: a Breton Wood system. The US has all the gold,
Speaker 1: they'll create the dollar peg to the gold, and uh,
Speaker 1: we'll create our own currencies, but will peg them back
Speaker 1: to the dollar. Now, the dollar, being the reserve currency
Speaker 1: of the world, has to supply the dollars to the world. Remember,
Speaker 1: the more money that comes out, the more we have booms.
Speaker 1: When the money supply contracts, we have bus So the
Speaker 1: Federal Reserve starts printing money, they start shipping these dollars
Speaker 1: all around the world. The problem is that it's a balance.
Speaker 1: As we talked about, right, when you create more money,
Speaker 1: when you increase the money supply, that's called infla aation,
Speaker 1: all right, when you create inflation, when you inflate the
Speaker 1: money supply, yes you get growth. Yes you get economic booms.
Speaker 1: You also get inflation. You get both because now we
Speaker 1: have more money chasing goods, and so the prices of
Speaker 1: those goods go up. Now, if hypothetically, if this is
Speaker 1: what this is what the central Bank dreams about, the
Speaker 1: federals or of dreams about, if hypothetically we could I
Speaker 1: say hypothetically, it's their goal. I say hypothetically, cause we
Speaker 1: never get there. Hypothetically, if we could increase the money
Speaker 1: supply by two percent, per year. That's their goal to
Speaker 1: percent inflation. And we could grow the economy, meaning the
Speaker 1: grow the amount of goods and services being created by
Speaker 1: two percent a year, then we wouldn't actually have inflation.
Speaker 1: We would be just we would be created more money
Speaker 1: at the same rate as goods and services. Would be
Speaker 1: perfect equilibrium. It'd be utopia. The problem is, there's no
Speaker 1: such thing as utopia, and that's not how it works.
Speaker 1: And so we get to the situation where they're having
Speaker 1: to print more money and more money and more money,
Speaker 1: but we're not getting the goods and services to grow
Speaker 1: along with it, and we get inflation. So inflation gets
Speaker 1: too high. Well, we gotta pull back on the money
Speaker 1: supply boom, we get a crash. Everything crashes and no
Speaker 1: one can afford to live. We're in the Great Depression,
Speaker 1: and so okay, well, let's let's print more money. Against
Speaker 1: we print more money again, things start going good again.
Speaker 1: We're going to another big boom. Houses are being built,
Speaker 1: cars being built, businesses are being formed. Uh. But then
Speaker 1: we printed too much money more than the goods and services,
Speaker 1: and so we have too much inflation and we have
Speaker 1: to pull back on the lever again. Sound familiar. That's
Speaker 1: exactly where we're at today. Inflation is raging high because
Speaker 1: we've printed way too much money, and now they're pulling
Speaker 1: back on the money supply. And you're watching your retirement
Speaker 1: account drink, you're watching your home valuation shrink, You're watching
Speaker 1: everything shrink because they're pulling back on the money supply. Now,
Speaker 1: if this sounds a little bit insane, you would be correct.
Speaker 1: It is absolutely insane. As a matter of fact, nobody
Speaker 1: should have the power to do this. Nobody should have
Speaker 1: the power to um increase and decrease the monetary supply
Speaker 1: um just arbitrarily in my opinion. Anyway, Now, this is
Speaker 1: the most important situation in the world right now. All right,
Speaker 1: the bank Ammadians broke, and I believe the central banks
Speaker 1: around the world are also going to break. We're witnessing
Speaker 1: the sovereign debt bubble. So let's kind of go through
Speaker 1: this a little bit to kind of frame this up.
Speaker 1: All right, So before we go through that, I mean,
Speaker 1: we can just see all here we go. Let's go
Speaker 1: through this, so to kind of frame this up a
Speaker 1: little bit. Um, Like I said, you kind of have
Speaker 1: to understand the central banks operates. We've kind of gone
Speaker 1: through that. The goal of the Federal Reserve, the Central
Speaker 1: Bank is is two things, stable prices and full employment.
Speaker 1: Now I'd say they're doing pretty bad at both of those.
Speaker 1: We certainly don't have stable prices. When the price of
Speaker 1: your home and the price of your stock goes up
Speaker 1: by it, that's certainly the opposite of stable prices. Um,
Speaker 1: But that's what their goals. So they're they're they're effectively
Speaker 1: failing at that. Now. What's happened is, again, um, we
Speaker 1: had way too much money created, way too much inflation.
Speaker 1: So the central banks, the feder Reserve, they start raising rates. Right,
Speaker 1: they're tightening monetary system now. Because we live in a
Speaker 1: debt based monetary system. That means, you know, you hear
Speaker 1: about the central banks are going to print money. They
Speaker 1: don't really print money. What they do is they lower rates.
Speaker 1: Because we're in a debt based system. Money is created
Speaker 1: through debt. So when you go to the bank to
Speaker 1: get a loan for a house, a car, a boat, whatever,
Speaker 1: that money is created into existence. Money is created into
Speaker 1: existence when you take a loan. So when they start
Speaker 1: tightening things, when the Fed starts are raising rates, you
Speaker 1: hear about this. They start raising rates well then people
Speaker 1: borrow less. Less money is being created into existence now
Speaker 1: all told, from about one um, central banks printed or
Speaker 1: pumped in about ten trillion dollars into the system. Right,
Speaker 1: so you get all this extra money chasing the same
Speaker 1: limited amounts of goods at the same time, you get
Speaker 1: all these supply chain disruptions to get less goods. You
Speaker 1: get massive amounts of inflation. Now we have witnessed both
Speaker 1: the central banks, and so the main central banks really
Speaker 1: would be like Tier one central banks. And so of
Speaker 1: course the Federal Reserve sits at the top of that.
Speaker 1: The reason why the federal reserves is to the top
Speaker 1: of that is because the dollar is the reserve currency
Speaker 1: of the world. About eight percent of transactions are in
Speaker 1: the dollar currency, so it takes up with that. As
Speaker 1: a matter of fact, the USD is involved in over
Speaker 1: ninetent of currency transaction, the Euro is involved in twenty
Speaker 1: of currency transactions, and the Japanese yen is involved in
Speaker 1: about seventeen percent. So those three banks, the FED for
Speaker 1: the United States, the ECB, European Central Bank, and the
Speaker 1: Bank of Japan are the three main banks. Bank of
Speaker 1: England is the next one. They're the fourth one in
Speaker 1: line there, and so they've created way too much money,
Speaker 1: and so they had to start raising rates. And what
Speaker 1: we witnessed is these knee jerk reactions. I said, I've
Speaker 1: said it before. If you tune in regularly, UM. If
Speaker 1: you don't, you should. UM. Also you can check me
Speaker 1: out on YouTube to search Mark Moss on YouTube. And
Speaker 1: I put these shows on YouTube on my Market Disruptives
Speaker 1: channel if you want to watch me and listen to
Speaker 1: me at the same time. And so they don't have
Speaker 1: the precision of a of a of a surgeon with
Speaker 1: the scalpel. Instead, they just have these knee jerk reactions.
Speaker 1: And so what we witnessed is that they they dropped
Speaker 1: rates at the fastest rate in history. They didn't do
Speaker 1: it orderly, they didn't do it intentionally, they didn't it thoughtfully.
Speaker 1: They just dropped them as fast as they can. Let's
Speaker 1: just get the quid in the system. And then instead
Speaker 1: of adjusting when they were getting them the moves they wanted,
Speaker 1: they left him there for way too long. And then
Speaker 1: what we're witnessing is the three of the three of
Speaker 1: these main banks now are going through a monetary tightening
Speaker 1: cycle at the fastest rate in history. So It's not
Speaker 1: just like this orderly, thoughtful decrease and then a thoughtful,
Speaker 1: orderly increase. No, this is a panic. It's a panic.
Speaker 1: They have accomplished moves that would typically take about three
Speaker 1: years to happen, and they've done it in months. All right.
Speaker 1: The problem is is that we're in a debt based system.
Speaker 1: So all the governments, the United States, the UK, the EU,
Speaker 1: they need debt. Right, We're all spending more than we make.
Speaker 1: We run these deficits and so we need to keep
Speaker 1: borrowing money. But when you increase the borrowing rates and
Speaker 1: then what happens, things start to break. You can start
Speaker 1: not you're not able to afford those things. Now, if
Speaker 1: we look at the United States, for example, we've seen
Speaker 1: the two year treasury that's the that's the amount of interest,
Speaker 1: the pay go from zero point to five percent to
Speaker 1: four per cent, and the SMP dropped from thirty six.
Speaker 1: Oh man, I got a lot to cover. I'm trying
Speaker 1: to talk really fast. You're listening to the Marktmas show.
Speaker 1: I'm explaining what's going on in the world and how
Speaker 1: this debt bubble is bursting. I got a lot more
Speaker 1: to cover when I come back. You do not want
Speaker 1: to miss it. Don't go away, all right, welcome back.
Speaker 1: You are listening to the Markma Show, where always talking
Speaker 1: about the decentralized revolution, the way the world is changing
Speaker 1: right now before very eyes through the lens of politics,
Speaker 1: finance and technology. Today right now we are talking about
Speaker 1: the Bank of England has broken. That's what we're talking about.
Speaker 1: And I was explaining how we got here, and basically
Speaker 1: what we saw is in the UK, the government United
Speaker 1: Kingdom which has the Bank of England that runs it, uh,
Speaker 1: they broke. And basically what happened is again they they
Speaker 1: they ease situations by dropping rates at the fast rate
Speaker 1: in history, and then they raised rates at the fast
Speaker 1: rate in history. No big deal, let's just panic and
Speaker 1: see what happens. That maybe something will break and what happens.
Speaker 1: At the same time, the UK government switched the parliament
Speaker 1: switch and so again we have to look at the
Speaker 1: political side. And so Boris Johnson stepped down and we
Speaker 1: got a new person in of course, that's Liz Trust.
Speaker 1: She's come in and she's determined to of course make
Speaker 1: things better. Who wouldn't want to make things better? List Trust,
Speaker 1: the United Kingdom's new Prime Minister, UM unfortunately came in
Speaker 1: and took over a very difficult situation, a time when
Speaker 1: a time when these debt bubbles are blowing up, and
Speaker 1: there's really no choice. If you don't keep pumping them
Speaker 1: full of money, they deflate, and if you do, then
Speaker 1: you keep getting um hyper inflation. And on top of that,
Speaker 1: they've created all these insane policies like getting rid of
Speaker 1: all our energy, and that's part of why, or really
Speaker 1: it's the main reason why we have so much inflation. Now.
Speaker 1: She came in fired up, she's ready to make a change,
Speaker 1: and she announced the largest UK tax cuts in fifty years. Now,
Speaker 1: I think that's a good it's a good thing. UM.
Speaker 1: Cutting taxes will leave more money with the producers, the
Speaker 1: people that produce wealth, and you'll get more wealth because
Speaker 1: of it. The problem is when they're already in such
Speaker 1: a major deficit in debt, it's very difficult, your your
Speaker 1: backs against the wall. And so even though I believe
Speaker 1: it probably have a better long term UM result for them,
Speaker 1: short term it hurts a short term it cuts their revenue.
Speaker 1: The estimated costs is fifty billion dollars of revenue that
Speaker 1: they're gonna lose on top of it at a time
Speaker 1: because energy prices are so high, because of course they've
Speaker 1: chosen not to get their own energy out of the ground.
Speaker 1: Now they're they're changing that right now. But energy prices
Speaker 1: are so high that businesses are shutting down, households are
Speaker 1: running out of money, and so they've agreed to subsidize
Speaker 1: those and that's an extra hundred and fifty billions. They're
Speaker 1: gonna lose fifty billion in taxes and they have to
Speaker 1: pay a hundred and fifty billions to subsidize the high
Speaker 1: high prices that they've caused. So it's a serious problem
Speaker 1: that they're in and there's really no easy way out
Speaker 1: of these things once you get into them. In the
Speaker 1: UK they have the serious inflation problem and this balance
Speaker 1: of payments problem. Like I said that the sore and
Speaker 1: energy prices inflations at double digit levels in the United
Speaker 1: States were just over eight percent, well that's per the
Speaker 1: official number, much higher than that, but in the UK
Speaker 1: they're over double digits, the worst that's been in forty years,
Speaker 1: similar to like what we have right here. Their their
Speaker 1: currency has lost twenty percent of its value to the
Speaker 1: US dollar, and so the Bank of England, which is
Speaker 1: the central bank for the UK is stuck in this
Speaker 1: rock and a hard place, the same all central banks are.
Speaker 1: They they backed themselves into this corner and if they
Speaker 1: failed to raise rates aggressively enough, then inflation is going
Speaker 1: to continue to raise on as their currency los device.
Speaker 1: So that it works both ways, so as the currency
Speaker 1: is losing value, the currency is buying less goods and services,
Speaker 1: the inflation goes up. So those those work opposite, right,
Speaker 1: So as prices go higher, what it really means is
Speaker 1: your dollar or your currency is buying you less. So
Speaker 1: the currency is crashing, prices are going up. It's really
Speaker 1: the same thing. It's opposite sides, makes sense, and so
Speaker 1: they start raising interest rates to try to shore up
Speaker 1: the currency and bring inflation back down. But the problem
Speaker 1: is is that the borrowing costs gets so high that
Speaker 1: the country's public finances are even worse. And so what
Speaker 1: happened is as it started crashing, the currency started crashing,
Speaker 1: the bond market, which a lot of pensions are in
Speaker 1: the bond market started crashing. So all the people that
Speaker 1: are planning on retiring in the UK one day that
Speaker 1: have their pension funds in there, they were all going busts.
Speaker 1: People were about to lose all of their money, and
Speaker 1: most likely they will. It's probably gonna happen to you
Speaker 1: in the United States as well, So take this as
Speaker 1: a warning. You have your money, your retirement Where is
Speaker 1: that money? Where is your retirement account? Most likely, if
Speaker 1: you've listened to your financial advisor, it's six stocks, it's bonds.
Speaker 1: Where are those bonds? That bond is dead? Who has
Speaker 1: that debt? What if they can't afford to pay you?
Speaker 1: Then it goes bust? So they have some of this,
Speaker 1: some of these pensioners have. There's debt in the Bank
Speaker 1: of England, I'm sorry with the UK, and it was
Speaker 1: all going bust and so the UK had no choice
Speaker 1: but to step in and to start to pump it
Speaker 1: back up. They had no choice, which is exactly what
Speaker 1: the United States will be forced to at some point
Speaker 1: as well. The problem is is that the Bank of
Speaker 1: England is the first major central bank to be broken
Speaker 1: by the markets. They had to announce that they're going
Speaker 1: to begin unlimited, quantitative easy, unlimited money printing into the
Speaker 1: market to support these UK bonds. So now they've basically,
Speaker 1: as I said from the beginning, they've pushed their chips
Speaker 1: all in. We're all in. They said unlimited. We're going
Speaker 1: to do unlimited to support it. So that's good, right,
Speaker 1: The sovereign bonds dropped, the yields dropped, and the dollar,
Speaker 1: or not the dollar, their pound, their pounds started rallying.
Speaker 1: It we have the support from the central bank. The
Speaker 1: pound is rallying. It shows that it's liking that all right.
Speaker 1: But what happens from this point is absolutely critical because
Speaker 1: they're all in. So if the yield on those UK
Speaker 1: bonds start going back up again, and subsequently the British
Speaker 1: pound starts collapsing again, it means the Bank of England
Speaker 1: has lost all credibility because they're all in. So we
Speaker 1: would be talking about a major central bank for a
Speaker 1: developed nation losing credibility with the markets now at the
Speaker 1: point of this recording, right now, it's too early to
Speaker 1: tell this just happened. But this is the most important
Speaker 1: situation in the world right now. I'm gonna say that again.
Speaker 1: This is the most important situation in the world right now.
Speaker 1: If things go south from here, the UK is gonna
Speaker 1: go bust. What does that mean? What does that mean?
Speaker 1: We're seeing, we're waiting, we're witnessing the British pound falling
Speaker 1: so fast that aclin is um, we'll say worrisome to
Speaker 1: think the least that they've said they'll do whatever it takes. Now,
Speaker 1: you would think by them saying that would actually have
Speaker 1: a bigger impact, but it's not. Now some of you
Speaker 1: might be asking, well, it seems like stocks rallied this week,
Speaker 1: and they did, so why did stocks rally off of that? Well? One,
Speaker 1: I think investors foolishly think that the Bank of England,
Speaker 1: if the Bank of England was forced to pivot from
Speaker 1: their tightening um and they're gonna start easing, pushing the
Speaker 1: market back up, then the Fed is probably gonna do
Speaker 1: the same. Right, everyone's waiting for the Fed to pivot.
Speaker 1: When will the Fed pivot? Um? And I don't I
Speaker 1: don't know if if people think that's a good idea
Speaker 1: to go along stocks when central banks are literally on
Speaker 1: the verge of losing credibility because if they don't, if
Speaker 1: this doesn't work, this whole system is coming crashing down. Now.
Speaker 1: What's interesting is, as this whole system is about to
Speaker 1: come crashing down, Bitcoin seems to be whole en up
Speaker 1: pretty good. As a matter of fact, Bitcoin is um
Speaker 1: kind of pumping on the news. I I don't like
Speaker 1: to use the word pumping because it's not moving by
Speaker 1: a whole lot, but it seems to be responding favorably
Speaker 1: to this. Now, you might remember that bitcoin was created
Speaker 1: in two eight at the Great financial Crash. In the
Speaker 1: very first line of code that the creator sat Toshi
Speaker 1: Nakamoto put forward, he put a message in the code
Speaker 1: and he said, the Chancellor is on the brink of
Speaker 1: a second bailout. It was created specifically for the crash
Speaker 1: of two eight. And here we are the crash of
Speaker 1: potentially maybe it, maybe it might last. And here we
Speaker 1: have Bitcoin ready to go. Now, as the central bankers
Speaker 1: start losing, continue losing credibility through at the end of
Speaker 1: the rope. Now we're already seeing them collapse in Lebanon
Speaker 1: and Argentina and Peru and Ecuador and Sri Lanka. We
Speaker 1: already seen them collapse on all those those are tier three,
Speaker 1: tier four. But when it happens in the Bank of
Speaker 1: England and a tier to central bank, people realize the
Speaker 1: game is up. How about we have a system with
Speaker 1: no central bankers, with no one's ability to inflate and
Speaker 1: deflate the money supply at will and that's exactly what
Speaker 1: Big One is intended to do. That's what it's here for.
Speaker 1: You've been listening to the Mark ma Show explaining to
Speaker 1: you what is going on. The most dangerous situation in
Speaker 1: the world today, the Bank of England is breaking. Get better,
Speaker 1: keep your eye on up because it is going to
Speaker 1: affect you no matter where you're at in the world.
Speaker 1: And that's what I got. Thanks so much for listening.