WEBVTT - The System is Breaking: Bitcoin Proves The Dollar is Crashing 0:00:00.080 --> 0:00:02.320 They keep telling you that stock's art record highs, but 0:00:02.800 --> 0:00:06.760 that's the illusion. In reality, they're down eighty four percent. Now, 0:00:06.760 --> 0:00:10.200 I know that sounds impossible, that's exactly what happens when 0:00:10.200 --> 0:00:13.800 the system starts breaking, because what you're seeing isn't real growth. 0:00:14.000 --> 0:00:16.880 It's just the dollar melting. The numbers go up, but 0:00:16.960 --> 0:00:20.599 your purchasing power goes down. And this exact pattern, the 0:00:20.720 --> 0:00:24.880 same signature, has shown up before every major currency collapse 0:00:24.960 --> 0:00:28.600 in history. Rome sawed wymar Germany saw it, Argentines are 0:00:28.600 --> 0:00:31.640 living through it right now, and we're seeing it again today, 0:00:31.680 --> 0:00:33.400 only this time it's global. 0:00:33.800 --> 0:00:33.959 Now. 0:00:33.960 --> 0:00:36.400 Most people they don't realize it yet because they're still 0:00:36.440 --> 0:00:39.519 measuring their wealth in the wrong yard stick. But when 0:00:39.560 --> 0:00:42.400 you change the unit of account, when you measure in 0:00:42.479 --> 0:00:45.600 real money, the truth jumps off the page. And that's 0:00:45.600 --> 0:00:47.680 what we're going to break down in this video. I'm 0:00:47.680 --> 0:00:50.680 going to show you how stocks, homes, and even your 0:00:50.720 --> 0:00:53.519 savings have already collapsed in real terms, and what this 0:00:53.640 --> 0:00:56.480 means for the next stage of the global financial system. 0:00:56.600 --> 0:00:58.000 Now, I've built and I've sold. 0:00:57.840 --> 0:01:01.600 Multiple tech companies. I'm a partner a lead bitcoin venture fund. 0:01:01.760 --> 0:01:04.840 I've been studying and teaching macroeconomics for a decade, and 0:01:04.920 --> 0:01:07.959 I'm telling you this data is real. By the end 0:01:08.000 --> 0:01:10.080 of this video, you're going to see exactly why the 0:01:10.120 --> 0:01:14.200 markets look like they're soaring, but in reality, they're already collapsing, 0:01:14.560 --> 0:01:18.280 and more specifically, what that means for every dollar, every stock. 0:01:18.040 --> 0:01:21.720 And home that you own. So let's go all right, 0:01:21.760 --> 0:01:23.520 you've probably seen it everywhere lately. 0:01:23.600 --> 0:01:23.800 Right. 0:01:24.040 --> 0:01:25.240 Stocks are at record. 0:01:25.000 --> 0:01:28.559 Highs, the economy is super strong, the wealth effect is back. 0:01:28.640 --> 0:01:31.520 You got CNBC, you got Bloomberg, you got Reuters. They're 0:01:31.520 --> 0:01:34.840 all running victory laps. Now on the surface, they're all right. 0:01:35.319 --> 0:01:37.960 If you look at the numbers in dollars, it's pretty 0:01:37.959 --> 0:01:38.559 hard to argue. 0:01:38.640 --> 0:01:38.840 Right. 0:01:39.160 --> 0:01:42.080 Since early twenty twenty, the S and P five hundred 0:01:42.120 --> 0:01:45.319 has climbed from around thirty two hundred points to nearly 0:01:45.440 --> 0:01:48.920 sixty nine hundred today. That's more than one hundred percent 0:01:48.960 --> 0:01:52.280 gain in just five years. Home prices they're doing pretty 0:01:52.280 --> 0:01:54.960 good too, They're up about fifty percent over the same 0:01:55.080 --> 0:01:58.560 time period according to case Shiller Index. So yeah, in 0:01:58.680 --> 0:02:01.840 dollar terms, it looks like a golden age for investors, right, 0:02:01.880 --> 0:02:02.640 everyone's richer. 0:02:03.200 --> 0:02:04.240 But here's the problem. 0:02:04.560 --> 0:02:07.400 If that were really true, why doesn't it feel like it, 0:02:07.640 --> 0:02:10.560 Because while your four one K may look bigger on paper, 0:02:10.720 --> 0:02:14.000 everything you actually need, you know, like food, insurance, housing, 0:02:14.560 --> 0:02:16.600 it's eating away at it faster than ever. 0:02:16.840 --> 0:02:17.000 Right. 0:02:17.040 --> 0:02:18.880 You feel it every time you fill up at the 0:02:18.919 --> 0:02:22.000 gas pump, every time you buy groceries. And that's not 0:02:22.160 --> 0:02:23.880 just in your head, it's. 0:02:23.680 --> 0:02:24.720 Baked into the data. 0:02:24.880 --> 0:02:28.160 Now, the Bureau of Labor Statistics, the BLS, they show 0:02:28.280 --> 0:02:31.360 real wages, that's that are wages that are just for inflation. 0:02:31.760 --> 0:02:34.760 They've barely moved in the last five years. They're up 0:02:34.800 --> 0:02:37.280 about one percent year over a year. But the cost 0:02:37.320 --> 0:02:38.760 of living, it's exploded. 0:02:39.280 --> 0:02:40.960 So the boom. 0:02:40.919 --> 0:02:43.800 That you're seeing, the boom in the financial markets, is 0:02:43.840 --> 0:02:45.760 not matching your daily reality. 0:02:46.040 --> 0:02:46.640 So what is it? 0:02:46.919 --> 0:02:49.520 Something's off right, And of course you can't help but 0:02:49.560 --> 0:02:53.240 notice that this is all disconnected. Right. The headlines tell 0:02:53.240 --> 0:02:56.840 you the economies never been stronger, but somehow everyone you 0:02:57.000 --> 0:03:00.000 know is struggling to keep up. People are working harder, 0:03:00.200 --> 0:03:03.800 earning more dollars, yet they're feeling poor. Right, that's not 0:03:03.880 --> 0:03:06.480 just a feeling, it's a signal. Because the last time 0:03:06.520 --> 0:03:09.400 we saw this kind of mismatch between nominal wealth and 0:03:09.440 --> 0:03:12.960 the real living standards when the chart that boom, but 0:03:13.080 --> 0:03:16.160 life felt more like a bust. That was during every 0:03:16.320 --> 0:03:19.880 major currency shift in history. So the question that we 0:03:19.960 --> 0:03:23.240 need to ask isn't our stocks at record highs? The 0:03:23.400 --> 0:03:27.560 right question is record highs measured in what? Because when 0:03:27.560 --> 0:03:30.160 you change what you measure in, when you stop assuming 0:03:30.160 --> 0:03:34.000 the dollar stable, that entire story looks very different. And 0:03:34.040 --> 0:03:36.800 I want to show you what's really happening behind those 0:03:36.840 --> 0:03:39.880 record highs and why the same signature is showing up 0:03:39.880 --> 0:03:44.080 today that we've seen before every major currency collapse in history. 0:03:44.160 --> 0:03:47.200 All Right, you know, everything we measure right, our income, 0:03:47.400 --> 0:03:50.120 our investments, the prices of our goods that we buy, 0:03:50.200 --> 0:03:53.280 it all comes down to one simple thing. It's the 0:03:53.400 --> 0:03:55.920 yard stick, the measuring stick, the ruler that we use, 0:03:56.440 --> 0:03:57.720 and that yard stick. 0:03:57.760 --> 0:03:58.320 Is the dollar. 0:03:58.800 --> 0:04:02.840 Now, the Federal Reserve finds money as having three basic jobs. 0:04:03.200 --> 0:04:06.640 A medium of exchange, a store of value, and a 0:04:06.840 --> 0:04:10.280 unit of account or the way that we measure value 0:04:10.320 --> 0:04:14.480 in economic transactions. But that measurement only works if the yard. 0:04:14.240 --> 0:04:16.560 Stick itself stays stable. 0:04:17.120 --> 0:04:20.640 If the inch changes every day, the blueprint all falls apart. 0:04:20.839 --> 0:04:23.800 Since twenty twenty, the inch the measuring stick. It's been 0:04:23.839 --> 0:04:27.360 dhrinking really fast. According to data from the Saint Louis 0:04:27.360 --> 0:04:30.880 FED the US money supply, the M two grew almost 0:04:31.040 --> 0:04:34.920 twenty seven percent year over year in February of twenty 0:04:34.960 --> 0:04:39.719 twenty one. That's the fastest monetary expansion in monetary records. Now, 0:04:39.800 --> 0:04:42.520 to put that into perspective, it's bigger than anything we 0:04:42.520 --> 0:04:45.200 saw in the nineteen seventies inflation. It's bigger than the 0:04:45.240 --> 0:04:47.000 QB programs of two thousand and eight. 0:04:47.640 --> 0:04:49.520 Think of it like this. If I owned a. 0:04:49.480 --> 0:04:52.040 Company worth, say a million dollars, and I asked you 0:04:52.080 --> 0:04:54.640 to invest, let's say invest one hundred thousand, and I'll 0:04:54.640 --> 0:04:56.839 give you ten percent ownership, right, And then I grew 0:04:56.880 --> 0:05:00.640 the business from one million to ten million dollars, your 0:05:00.680 --> 0:05:03.120 ten percent ownership would have grown from one hundred thousand 0:05:03.160 --> 0:05:07.200 dollars to now being worth a million dollars. It's awesome, right, Well, 0:05:07.200 --> 0:05:09.400 it is unless I diluted you. 0:05:09.640 --> 0:05:09.839 Right. 0:05:10.000 --> 0:05:12.840 If I went and raised more money and I increased 0:05:12.839 --> 0:05:15.320 the amount of shares. This happens all the time, by 0:05:15.320 --> 0:05:18.200 the way, when companies are growing, they're raising money, right. 0:05:18.560 --> 0:05:21.600 This is exactly what's happening to you when you measure 0:05:21.640 --> 0:05:22.600 things in dollars. 0:05:22.800 --> 0:05:25.320 And of course, when you create that much new money 0:05:25.560 --> 0:05:28.680 that quickly, you don't get more real wealth, You just 0:05:28.760 --> 0:05:32.840 get more units chasing the same goods and services. Now 0:05:32.839 --> 0:05:35.520 we can see it right in the data, the Consumer 0:05:35.560 --> 0:05:39.200 Price Index, the CPI, how the government tracks prices. I 0:05:39.279 --> 0:05:41.839 like to call it CPI, but going off of their data, 0:05:41.920 --> 0:05:44.760 it shows that it's climbed roughly twenty five to thirty 0:05:44.880 --> 0:05:49.160 percent just since twenty twenty. That means the same grocery basket, 0:05:49.520 --> 0:05:52.760 the same rent payment that cost one hundred dollars five 0:05:52.839 --> 0:05:55.560 years ago now costs about one hundred and thirty dollars. 0:05:56.040 --> 0:05:57.000 That's the yardstick. 0:05:57.360 --> 0:05:58.080 It's shrinking. 0:05:58.480 --> 0:06:01.359 So when the media says stack hit new highs or 0:06:02.000 --> 0:06:04.839 home prices keep going up, they're soaring, what they're really 0:06:04.880 --> 0:06:09.520 describing is the denominator breaking down. The measuring stick is 0:06:09.560 --> 0:06:12.320 getting shorter, so then everything that you measure with it 0:06:12.360 --> 0:06:16.400 looks taller. History's full of examples of this right, and 0:06:16.520 --> 0:06:20.200 the examples of what happens next. In ancient Rome, the 0:06:20.279 --> 0:06:23.440 silver content in their coins dropped from nearly one hundred 0:06:23.440 --> 0:06:26.560 percent silver to less than twenty percent silver as the 0:06:26.600 --> 0:06:30.160 empire debased its currency to pay its debts. Now, people 0:06:30.200 --> 0:06:31.599 back then thought the same thing. 0:06:31.680 --> 0:06:32.880 They thought they were getting richer. 0:06:33.160 --> 0:06:35.800 They thought they had more coins in their hands, but 0:06:35.839 --> 0:06:39.680 the coins themselves were worth less and less and less. 0:06:39.920 --> 0:06:46.279 During Wymar's Germany hyperinflation, stock prices nominal wages also exploded higher, 0:06:46.640 --> 0:06:51.080 but in real purchasing power they collapsed. People carried wheelbarrows 0:06:51.080 --> 0:06:54.640 of marks just to buy bread, while charts on paper 0:06:54.800 --> 0:06:57.440 showed that they were growing, showed they were getting rich. 0:06:58.120 --> 0:07:00.640 And today you can see the same dynamic in Argentina. 0:07:00.960 --> 0:07:05.200 Last year inflation ran over two hundred percent, prices tripled, 0:07:05.440 --> 0:07:09.400 salaries double, and yet somehow everybody still ends up poor. 0:07:10.240 --> 0:07:13.240 That's what a falling yardstick looks like in real time. 0:07:13.520 --> 0:07:16.120 So when you see record high markets in dollars but 0:07:16.320 --> 0:07:19.840 stagnant wages and crushing costs of living, it's not a paradox. 0:07:20.200 --> 0:07:21.720 It's the textbook example. 0:07:21.760 --> 0:07:25.840 It's the sign of a yardstick that's losing integrity. So 0:07:25.880 --> 0:07:28.760 the question now isn't whether the dollar is weakened. Right 0:07:28.760 --> 0:07:30.920 the data already tells is that I already proved that out. 0:07:31.360 --> 0:07:34.160 The real question is what happens when you start measuring 0:07:34.240 --> 0:07:36.080 in something that isn't melting? 0:07:36.480 --> 0:07:37.679 What happens if we get. 0:07:37.520 --> 0:07:42.240 Another yard stick. All right, that's where the illusion completely breaks. Now, 0:07:42.240 --> 0:07:44.680 before we get into that, have you ever wondered how 0:07:44.720 --> 0:07:47.960 the US can run trillion dollar deficits every single year, 0:07:48.360 --> 0:07:51.600 you know, spend more than it earns, print money like crazy, 0:07:51.760 --> 0:07:53.960 and yet somehow the dollar never. 0:07:53.880 --> 0:07:54.920 Seems to collapse. 0:07:55.480 --> 0:07:58.440 Well, it's because the system isn't built on productivity anymore. 0:07:58.800 --> 0:08:02.240 It's built on something else, something I call the imperial 0:08:02.360 --> 0:08:05.480 carry trade. Here's how it works. For over eighty years, 0:08:05.520 --> 0:08:08.840 the US has issued the world's reserve currency, the dollar. 0:08:09.000 --> 0:08:09.120 Right. 0:08:09.320 --> 0:08:13.600 That means everyone around the world, governments, corporations, banks, they 0:08:13.680 --> 0:08:17.080 need dollars to trade, to borrow, to save, and that 0:08:17.240 --> 0:08:21.200 privilege it gives the US an almost unlimited credit card. Now, 0:08:21.240 --> 0:08:24.720 according to the Bureau of Economic Analysis, last year, America 0:08:24.800 --> 0:08:27.840 ran a current account deficit of about one point one 0:08:28.160 --> 0:08:32.400 three trillion dollars, nearly four percent of GDP. That's money 0:08:32.400 --> 0:08:35.160 flowing out of the country to pay for imports, for 0:08:35.240 --> 0:08:38.680 military bases, for foreign investments, and interest on the debt. 0:08:38.720 --> 0:08:43.040 But because the world uses those dollars, those dollars they 0:08:43.080 --> 0:08:47.120 come right back in. Foreigners recycle them by buying US 0:08:47.120 --> 0:08:50.760 assets by buying US treasury bonds, by stocks, by buying 0:08:50.880 --> 0:08:54.720 real estate. Now, today foreigners hold a record nine point 0:08:54.760 --> 0:08:58.720 one trillion in treasuries. Japan alone owns more than one 0:08:58.760 --> 0:09:02.240 point one trillion. The UK recently passed China as the 0:09:02.320 --> 0:09:06.400 second largest holder. So while the US runs these massive trade, 0:09:06.440 --> 0:09:10.599 these massive budget deficits, it also attracts the world savings 0:09:10.720 --> 0:09:12.920 to fund all of it. Right, That's what we call 0:09:13.160 --> 0:09:16.559 the carry, and it shows up on the balance sheet. Now, 0:09:16.559 --> 0:09:19.480 if you add up everything the US owns abroad versus 0:09:19.760 --> 0:09:23.760 what foreigners own here, the US is now negative by 0:09:23.880 --> 0:09:28.840 twenty six trillion dollars. That's the net international investment position. 0:09:29.320 --> 0:09:33.400 Think about that, the world owns twenty six trillion more 0:09:33.440 --> 0:09:37.160 of America than America owns of the world. And yet 0:09:37.200 --> 0:09:40.520 the system it still runs because the rest of the 0:09:40.520 --> 0:09:44.760 world wants those dollar assets. That's the power of having 0:09:44.800 --> 0:09:48.760 the reserve currency. But now here's where the imperial part 0:09:48.800 --> 0:09:52.600 comes in. When the FED cuts rates or launches QE, 0:09:52.920 --> 0:09:57.240 which is coming, it pumps liquidity into the markets, Asset 0:09:57.280 --> 0:10:01.880 prices rise, stocks, homes, bonds. All that creates what economists 0:10:01.880 --> 0:10:04.880 at the New York FED call the quote wealth effect. 0:10:05.120 --> 0:10:06.720 Right, now they've studied this for decades. 0:10:07.200 --> 0:10:10.720 For every dollar of stock market wealth, Americans spend about 0:10:10.720 --> 0:10:14.960 two or three cents more. That extra spending boosts GDP. 0:10:15.520 --> 0:10:18.280 It makes the economy look really strong, and it attracts 0:10:18.320 --> 0:10:23.000 even more global capital that's chasing those rising nominal returns. 0:10:23.240 --> 0:10:27.680 It's basically one giant feedback loop. Policy creates acid inflation. 0:10:28.160 --> 0:10:33.000 Acid inflation creates consumption. Consumption attracts capital, and that capital 0:10:33.040 --> 0:10:37.240 funds the next deficit. Round and round and round the 0:10:37.240 --> 0:10:40.280 flywheel goes. But every carry trade it has a hidden 0:10:40.360 --> 0:10:43.760 risk because all those foreign investors, you know, the ones 0:10:43.800 --> 0:10:47.560 that are holding US bonds and holding stocks, they're taking 0:10:47.679 --> 0:10:48.440 currency risk. 0:10:49.040 --> 0:10:50.839 If the dollar weekends. 0:10:50.640 --> 0:10:53.400 Or inflation runs hot, they're the ones that are going 0:10:53.480 --> 0:10:55.880 to eat the loss in real terms. Right, the US 0:10:55.880 --> 0:10:58.280 gets to inflate away part of its debt burden, but 0:10:58.400 --> 0:11:01.240 the foreign holders, they lose purchasing power. That's why I 0:11:01.280 --> 0:11:03.480 call it the imperial carry trade. 0:11:03.559 --> 0:11:03.719 Right. 0:11:03.720 --> 0:11:06.760 It's the modern version of what every single empire does 0:11:06.840 --> 0:11:10.960 in its final phase. It uses currency privilege to siphon 0:11:11.120 --> 0:11:16.120 the world's wealth, inflate domestically, inflate asset prices, and quietly 0:11:16.280 --> 0:11:20.400 export the losses abroad. It's elegant, it's great, but it's 0:11:20.440 --> 0:11:24.120 temporary because no empire can keep this carry trade going forever. 0:11:24.600 --> 0:11:27.880 And when that carry unwinds, when the world no longer 0:11:27.920 --> 0:11:30.679 wants to hold melting dollar claims. 0:11:30.240 --> 0:11:31.920 Well, the illusion starts to break. 0:11:32.320 --> 0:11:35.440 That's when the real scoreboard starts to matter. And when 0:11:35.440 --> 0:11:38.720 we switch to something else, a different scoreboard, we measure 0:11:38.720 --> 0:11:41.720 something else other than dollars. Let's say we measure it 0:11:41.720 --> 0:11:44.560 in gold, we measured it in bitcoin. That you'll see 0:11:44.720 --> 0:11:48.480 how far the system has already fallen. Okay, So now 0:11:48.840 --> 0:11:51.880 to really see this, to really understand this, let's measure 0:11:51.920 --> 0:11:55.160 the markets using three different yardsticks. We'll measure it in 0:11:55.160 --> 0:11:57.640 the dollar, we'll measure it in gold, and then we'll measure. 0:11:57.360 --> 0:11:57.959 It in bitcoin. 0:11:58.160 --> 0:12:00.240 And that way we can see the story that each 0:12:00.360 --> 0:12:03.000 one of these yardsticks tell us. So let's look at first. 0:12:03.040 --> 0:12:06.560 We'll look at the dollar. We'll call it the comfortable illusion. 0:12:06.840 --> 0:12:09.800 Let's start with the dollar is what every headline uses, 0:12:09.840 --> 0:12:12.400 it's what most of the world uses. At the start 0:12:12.400 --> 0:12:14.600 of twenty twenty, the S and P five hundred sat 0:12:14.600 --> 0:12:18.200 at around thirty two seventy eight. Today, it's roughly sixty 0:12:18.240 --> 0:12:20.280 eight seventy five, So that's a gain of about one 0:12:20.360 --> 0:12:24.360 hundred and ten percent. Now, the case Shiller Home Price Index, 0:12:24.480 --> 0:12:27.839 which tracks the US housing it was around two twelve 0:12:27.920 --> 0:12:30.679 back then. Now it's around three thirty, so that's about 0:12:30.800 --> 0:12:33.599 fifty six percent. Now, those are the charts that you 0:12:33.679 --> 0:12:36.040 see on TV. Right, those are the ones that people 0:12:36.080 --> 0:12:39.720 make that make you feel rich. Right, stocks at record highs. 0:12:39.760 --> 0:12:42.760 Home values are soaring. But remember what we talked about earlier. 0:12:43.080 --> 0:12:46.320 Those highs are only due to the nominal dollars, right, 0:12:46.440 --> 0:12:48.840 those dollars have been inflated at record speeds. So the 0:12:48.880 --> 0:12:51.960 real question isn't how much the prices went up, it's 0:12:52.000 --> 0:12:54.559 how much the measuring stick went down. 0:12:54.679 --> 0:12:57.400 So let's use something different. Let's use gold. 0:12:57.760 --> 0:13:00.600 If we switch that yard stick over to goal, then 0:13:00.760 --> 0:13:03.680 we see something different. Now why gold, Well, because for 0:13:03.760 --> 0:13:06.959 thousands of years, gold has been the baseline. Gold has 0:13:07.000 --> 0:13:09.640 been the unit of account. Right, it's the oldest, most 0:13:09.640 --> 0:13:12.520 trusted form of money. It's a real test of purchasing power. 0:13:12.800 --> 0:13:14.520 So if we price the S and P five hundred 0:13:14.600 --> 0:13:17.800 and gold, we get something completely different. Back in early 0:13:17.840 --> 0:13:21.079 twenty twenty, gold was about fifteen to twenty per ounce, 0:13:21.360 --> 0:13:23.800 and the SMP five hundred was thirty two seventy eight, 0:13:23.840 --> 0:13:26.839 so that means the index was worth roughly two point 0:13:26.840 --> 0:13:30.000 one six ounces of gold. Fast forward, today, the S 0:13:30.080 --> 0:13:32.480 and P five hundred is up around sixty eight seventy five, 0:13:32.559 --> 0:13:35.199 and now gold's up over four thousand dollars an ounce. 0:13:35.640 --> 0:13:38.000 That means that the S and P five hundred is 0:13:38.040 --> 0:13:40.840 only about one point seven ounces of gold. So, in 0:13:40.840 --> 0:13:44.240 other words, after all the inflation, after all the stimulus, 0:13:44.320 --> 0:13:48.199 after all the AI, all the booming headlines, the market's 0:13:48.240 --> 0:13:50.119 down when you measured in gold. 0:13:49.880 --> 0:13:54.040 Not up down five years, and it's down now. The 0:13:54.559 --> 0:13:55.560 same is true for housing. 0:13:55.880 --> 0:13:58.280 Your home might have gone up by fifty six percent 0:13:58.320 --> 0:14:02.720 in dollar terms. Again, gold's gone up to four thousand, right, 0:14:02.800 --> 0:14:07.120 so in gold terms, real home values are down again. 0:14:07.320 --> 0:14:10.480 Everything is going down. That's the first crack in the illusion. 0:14:10.880 --> 0:14:13.960 Even under a traditional hard money standard, the gold standard, 0:14:14.160 --> 0:14:18.360 supposed wealth boom completely disappears. Now let's switch to bitcoin, 0:14:18.760 --> 0:14:22.680 arguably the hardest denominator we have today. In twenty twenty one, 0:14:22.680 --> 0:14:26.000 bitcoin traded for about seven thousand dollars, and Bitcoin it's 0:14:26.000 --> 0:14:28.080 been falling. It's fallen off of it's high of about 0:14:28.080 --> 0:14:30.880 one hundred and twenty six thousand. Today it's around ninety 0:14:31.000 --> 0:14:34.760 ninety two thousand, but it's still roughly a thirteen times increase. 0:14:35.080 --> 0:14:37.560 So if we reprice the S and P five hundred 0:14:37.600 --> 0:14:40.080 and bitcoin back then, one unit of the index was 0:14:40.120 --> 0:14:43.360 worth about zero point four to seven bitcoin, but today 0:14:43.480 --> 0:14:46.760 it's about point zero seven bitcoin. That means that's a 0:14:46.880 --> 0:14:50.160 drop in real terms of roughly eighty four to eighty 0:14:50.200 --> 0:14:52.680 five percent. Now, when we do the same for housing, 0:14:53.000 --> 0:14:55.560 a fifty six percent moving dollars over the period, but 0:14:55.600 --> 0:14:59.200 against a thirteen times bitcoin rise, the result is a 0:14:59.240 --> 0:15:03.280 decline in bitcoin terms in the eighty to ninety percent range. 0:15:03.440 --> 0:15:06.760 Even gold, which doubled in dollars terms, has lost the 0:15:06.880 --> 0:15:09.760 vast majority of its value when measured in bitcoin. 0:15:10.240 --> 0:15:11.240 So in just five. 0:15:11.120 --> 0:15:13.800 Years, bitcoin has completely flipped the scoreboard. 0:15:14.200 --> 0:15:16.120 In dollars assets are going. 0:15:16.440 --> 0:15:21.040 In gold, they're stagnant, but in bitcoin they're absolutely collapsing. 0:15:21.240 --> 0:15:23.520 That's what Luke Grammin calls the scarf layer. It's a 0:15:23.560 --> 0:15:26.880 living record of a dying denominator. Because what you're looking 0:15:26.920 --> 0:15:29.040 at right now isn't just a bull market, it's not 0:15:29.080 --> 0:15:31.880 just a bubble. It's the first stage of a global 0:15:32.000 --> 0:15:35.240 unit of account fracture, a slow transition away from the 0:15:35.280 --> 0:15:38.520 old measuring stick, the dollar, toward a new one. That's 0:15:38.560 --> 0:15:40.840 why the world feels so off. 0:15:41.280 --> 0:15:43.080 Is why wages don't match prices. 0:15:43.120 --> 0:15:46.040 It's why the economy looks strong on paper, but it 0:15:46.040 --> 0:15:49.040 feels weaker in reality. We're measuring our world with a 0:15:49.160 --> 0:15:51.800 broken ruler, and when you finally switch to one that 0:15:51.880 --> 0:15:54.720 doesn't change, the truth comes into focus. 0:15:55.480 --> 0:15:57.120 So now let's you understand that. 0:15:57.240 --> 0:15:59.960 The next question is why the US keeps doing this, 0:16:00.520 --> 0:16:04.360 why policy makers keep inflating assets and exporting risk abroad. 0:16:05.240 --> 0:16:08.400 Because it's not random, right, It's a strategy. It's the 0:16:08.440 --> 0:16:11.440 play the US is run before. It's what I call again. 0:16:11.280 --> 0:16:12.960 The imperial carry trade. 0:16:12.960 --> 0:16:16.120 It's the hidden engine that's been keeping all of this alive. 0:16:16.360 --> 0:16:20.440 Every empire's currency goes through the same process. First it dominates, 0:16:20.800 --> 0:16:24.240 then it defends, and then finally it dilutes. And when 0:16:24.240 --> 0:16:27.640 you reach that last stage, the smartest players they quietly 0:16:27.680 --> 0:16:32.000 start shifting out of paper promises and into hard collateral. 0:16:32.280 --> 0:16:33.160 That's exactly what. 0:16:33.120 --> 0:16:34.080 We're seeing right now. 0:16:34.480 --> 0:16:38.000 According to the World Gold Council, central banks bought over 0:16:38.120 --> 0:16:40.800 one thousand tons of gold in both twenty twenty two 0:16:40.960 --> 0:16:44.320 and twenty twenty three, the two biggest years on record. 0:16:44.640 --> 0:16:48.480 In twenty twenty five, they're still buying. Just in August alone, 0:16:48.520 --> 0:16:51.840 they added another nineteen tons to their reserves. Now this 0:16:51.880 --> 0:16:55.880 isn't about a profit, this is about insurance. They're swapping 0:16:55.920 --> 0:16:59.720 all those fiat IOUs for real settlement assets. Because when 0:16:59.720 --> 0:17:02.720 you trust in the unit of account that starts breaking down, 0:17:03.200 --> 0:17:07.440 gold becomes the neutral reserve choice. It's not someone else's liability. 0:17:07.920 --> 0:17:10.919 That's the entire point. Now, the dollar still dominates. It's 0:17:11.000 --> 0:17:14.320 roughly about fifty seven percent of global reserves once you 0:17:14.359 --> 0:17:17.280 adjust for exchange rates, but a decade ago that number 0:17:17.359 --> 0:17:20.720 was close to sixty five percent. So the change is slow, 0:17:21.000 --> 0:17:23.760 but it's persistent. Right, it's a creep While a lot 0:17:23.760 --> 0:17:26.720 of people are thinking there's a crash coming, it's crashing 0:17:27.040 --> 0:17:30.120 just a little bit slower than what most people expect. 0:17:30.400 --> 0:17:33.320 But at the same time, we're watching dozens of small 0:17:33.359 --> 0:17:35.080 bypasses starting to open up. 0:17:35.160 --> 0:17:39.840 Right, India and the UAE, they're now testing rupee trade. 0:17:40.119 --> 0:17:43.160 Brazil and China, they've launched a twenty seven billion dollar 0:17:43.240 --> 0:17:46.920 currency swap line. Iron ore contracts they're settling in Yuwan. 0:17:47.359 --> 0:17:51.080 Now these things they sound small, they don't look really big. 0:17:51.200 --> 0:17:52.520 Yet they are right. 0:17:52.520 --> 0:17:55.320 They're small, but they're important because they start to chip 0:17:55.359 --> 0:17:57.880 away at the monopoly of one settlement rail. 0:17:58.280 --> 0:18:00.600 That's how a unit of account fractus spreads. 0:18:00.720 --> 0:18:02.800 It's not through a single event like most people think, 0:18:02.880 --> 0:18:06.560 but through one thousand quiet experiments. And while governments are 0:18:06.560 --> 0:18:10.080 trying to build alternative rails, the market already has. It's 0:18:10.080 --> 0:18:13.320 already built them. Stable coins, private dollar denominated tokens are 0:18:13.320 --> 0:18:17.359 now settling over twenty seven trillion dollars a year. I 0:18:17.400 --> 0:18:20.040 mean to put that into perspective, that's more than visa. 0:18:20.240 --> 0:18:24.560 These digital dollars move peer to peer, across borders, without banks, 0:18:24.560 --> 0:18:29.080 without swift. That's the market quietly building its own financial plumbing, 0:18:29.359 --> 0:18:34.000 one that doesn't need permission, a unit of account agnostic 0:18:34.160 --> 0:18:38.520 system that can clear dollars today, bitcoin tomorrow, or whatever 0:18:38.520 --> 0:18:41.080 comes next. And on the other end of the spectrum, 0:18:41.200 --> 0:18:43.919 the institutions, they've also arrived. In the first year of 0:18:44.040 --> 0:18:47.400 US spot Bitcoin ETFs, we saw thirty eight billion net inflows, 0:18:47.640 --> 0:18:51.600 a record for any new asset class. Blackrocks IBID alone 0:18:51.640 --> 0:18:55.240 now holds over eight hundred thousand bitcoin nearly four percent 0:18:55.240 --> 0:18:57.320 of the total supply. What this means is that what 0:18:57.520 --> 0:18:59.959 used to be considered a risk asset on the fringe 0:19:00.359 --> 0:19:05.400 is now sitting inside retirement accounts, inside corporate treasuries, sovereign 0:19:05.440 --> 0:19:06.159 balance sheets. 0:19:07.000 --> 0:19:07.880 So what does all this mean. 0:19:08.240 --> 0:19:11.359 It means the scoreboard is already changing, even if the 0:19:11.440 --> 0:19:15.480 referees keep pretending it's the same game. Central banks they're 0:19:15.520 --> 0:19:18.560 hoarding gold, right, trade partners are using their own currencies. 0:19:18.720 --> 0:19:22.240 Stable coins have built a complete shadow payment network bigger 0:19:22.280 --> 0:19:22.960 than visa. 0:19:23.040 --> 0:19:24.200 Bitcoin has become. 0:19:24.080 --> 0:19:28.040 A parallel reserve ledger recognized by Wall Street. We're not 0:19:28.080 --> 0:19:31.240 watching theory anymore, right, We're watching a transition. This is 0:19:31.240 --> 0:19:34.200 what a unit of account shift looks like from the inside. 0:19:34.240 --> 0:19:38.280 It's slow, it's uneven, and yes it's messy, but it's 0:19:38.320 --> 0:19:41.159 happening right now. And that brings us to the real question. 0:19:42.200 --> 0:19:45.080 What do you do in a world where the measuring 0:19:45.160 --> 0:19:46.560 stick itself is breaking? 0:19:47.080 --> 0:19:48.960 How do you position? How do you plan? 0:19:49.040 --> 0:19:51.680 How do you protect yourself when the scoreboard is being 0:19:51.720 --> 0:19:55.159 rewritten in real time? Well, as they say, awareness and 0:19:55.440 --> 0:19:58.320 admitting the problem is the first step. So now that 0:19:58.400 --> 0:20:01.480 you see that the scoreboards chained, the question is what 0:20:01.600 --> 0:20:05.360 do you do with that information? Because this isn't about trading, right, 0:20:05.359 --> 0:20:08.320 It's not about chasing headlines. It's about awareness. It's about 0:20:08.359 --> 0:20:12.400 knowing what game you're playing. It's about knowing what rules 0:20:12.600 --> 0:20:13.640 are quietly being. 0:20:13.440 --> 0:20:14.440 Rewritten underneath it. 0:20:14.600 --> 0:20:17.040 Now, the first step is simple, right, measure your wealth 0:20:17.320 --> 0:20:19.919 in more than one yardstick. Now, most people only look 0:20:19.960 --> 0:20:22.439 at their net worth in dollars, right, that's mistake number one. 0:20:22.840 --> 0:20:25.720 Start tracking it in gold, Start tracking in bitcoin terms. 0:20:25.960 --> 0:20:28.520 Just divide your total net worth by the price of 0:20:28.560 --> 0:20:29.359 gold or by. 0:20:29.280 --> 0:20:30.200 Bitcoin once a month. 0:20:30.480 --> 0:20:32.359