1 00:00:00,200 --> 00:00:02,840 Speaker 1: While the whole world is watching Iran right now, something 2 00:00:02,880 --> 00:00:06,760 Speaker 1: happened this week that most people completely missed. Trump publicly 3 00:00:06,800 --> 00:00:10,000 Speaker 1: went to war with the banks. And I don't mean metaphorically, 4 00:00:10,039 --> 00:00:12,040 Speaker 1: I mean he called them out by name. And the 5 00:00:12,080 --> 00:00:14,720 Speaker 1: reason why this matters to you is simple. The outcome 6 00:00:14,760 --> 00:00:17,759 Speaker 1: of this fight will determine which side of the biggest 7 00:00:17,760 --> 00:00:18,840 Speaker 1: wealth transfer. 8 00:00:18,560 --> 00:00:20,119 Speaker 2: Of our lifetime you end up on. 9 00:00:20,560 --> 00:00:23,360 Speaker 1: So in this video, I'm gonna break down exactly what's happening, 10 00:00:23,720 --> 00:00:25,320 Speaker 1: why the banks were terrified. 11 00:00:24,920 --> 00:00:26,320 Speaker 2: And what you need to do about it. 12 00:00:26,760 --> 00:00:29,960 Speaker 1: So let's go, all right, let's just get going in 13 00:00:30,040 --> 00:00:32,400 Speaker 1: this Like right now, everybody is. 14 00:00:32,360 --> 00:00:34,680 Speaker 2: Locked in on the war over and Iran, and they should. 15 00:00:34,720 --> 00:00:38,360 Speaker 1: It's important, right, I get that war, maybe World War III, 16 00:00:38,640 --> 00:00:42,040 Speaker 1: you know, Israel, Iran, China, oil supply, geopolitical risk, all 17 00:00:42,040 --> 00:00:42,239 Speaker 1: of that. 18 00:00:42,440 --> 00:00:42,680 Speaker 2: Right. 19 00:00:43,000 --> 00:00:46,159 Speaker 1: There's of course plenty of politics to fight over with that, 20 00:00:46,400 --> 00:00:49,159 Speaker 1: and of course that stuff, it all matters, okay. 21 00:00:49,280 --> 00:00:50,680 Speaker 2: But while all the eyes. 22 00:00:50,440 --> 00:00:54,000 Speaker 1: Are pointed over there, something happened this week in Washington 23 00:00:54,200 --> 00:00:57,200 Speaker 1: that's part of a much bigger, much bigger developing story, 24 00:00:57,360 --> 00:00:59,880 Speaker 1: something I've been talking about since probably I don't. 25 00:00:59,840 --> 00:01:00,680 Speaker 2: The end of the year. 26 00:01:01,000 --> 00:01:04,639 Speaker 1: I think it's actually more consequential for your financial life 27 00:01:04,760 --> 00:01:07,800 Speaker 1: than anything that's happening in the Middle East right now. Now, 28 00:01:07,959 --> 00:01:10,560 Speaker 1: what happened is Trump went to war, but this time 29 00:01:10,959 --> 00:01:13,480 Speaker 1: with the banks. And I'm not talking about like a 30 00:01:13,520 --> 00:01:17,720 Speaker 1: policy disagreement. I'm not talking about hey, a strongly worded letter. 31 00:01:18,280 --> 00:01:22,280 Speaker 1: He literally posted publicly about this on his true social account, 32 00:01:22,560 --> 00:01:25,440 Speaker 1: and he basically drew a red line and he named 33 00:01:25,440 --> 00:01:28,520 Speaker 1: the banks directly, and he said, you know, what they're 34 00:01:28,520 --> 00:01:31,880 Speaker 1: doing is unacceptable. And the banks, well, they fired back 35 00:01:32,000 --> 00:01:35,600 Speaker 1: almost immediately. Now, most people are gonna see this as 36 00:01:35,680 --> 00:01:38,200 Speaker 1: I don't know, some political noise right a fight in 37 00:01:38,360 --> 00:01:42,360 Speaker 1: Washington over some crypto stablehoin Bill, and think that's boring 38 00:01:42,480 --> 00:01:45,200 Speaker 1: and probably skip past his video. But that's a mistake. 39 00:01:45,600 --> 00:01:47,760 Speaker 1: I wouldn't be making this video for you if that's 40 00:01:47,840 --> 00:01:49,560 Speaker 1: really all there was, because I know that you can 41 00:01:49,600 --> 00:01:52,000 Speaker 1: read the news on your own. But I'm here to 42 00:01:52,040 --> 00:01:54,600 Speaker 1: help you understand what it means. I want you to 43 00:01:54,640 --> 00:01:57,960 Speaker 1: think in second or third or fourth order effects. I 44 00:01:58,000 --> 00:02:01,000 Speaker 1: want you to understand the historical pairalle of what this means, 45 00:02:01,040 --> 00:02:05,040 Speaker 1: because what's actually underneath this fight, right the reason that 46 00:02:05,080 --> 00:02:07,800 Speaker 1: the banks are spending tens of millions of dollars to 47 00:02:07,840 --> 00:02:11,240 Speaker 1: stop this legislation. It's way bigger, It goes way deeper 48 00:02:11,240 --> 00:02:14,560 Speaker 1: than crypto. This is about who controls money. This is 49 00:02:14,600 --> 00:02:18,680 Speaker 1: about your ability to transact. This is about the monopoly 50 00:02:18,800 --> 00:02:21,880 Speaker 1: the banks have held since nineteen thirteen. That's for the 51 00:02:21,919 --> 00:02:25,360 Speaker 1: first time being genuinely threatened. And here's why that should 52 00:02:25,400 --> 00:02:29,120 Speaker 1: matter to you and I personally. Every single time the 53 00:02:29,200 --> 00:02:33,640 Speaker 1: money system has restructured, at least in American history, this 54 00:02:33,800 --> 00:02:35,880 Speaker 1: will be now the third time that we've seen this. 55 00:02:36,240 --> 00:02:39,320 Speaker 1: The people who understood what was happening, they got wealthy, 56 00:02:39,520 --> 00:02:42,160 Speaker 1: and the people who didn't, well, they got left behind. 57 00:02:42,320 --> 00:02:44,920 Speaker 1: All right, So let's talk about what's actually going on here. 58 00:02:44,960 --> 00:02:47,720 Speaker 1: And it really starts with a warning that was written 59 00:02:47,840 --> 00:02:50,040 Speaker 1: I don't know two hundred years ago. What am I 60 00:02:50,080 --> 00:02:53,200 Speaker 1: talking about. I'm talking about Thomas Jefferson. He was the 61 00:02:53,200 --> 00:02:54,079 Speaker 1: third President of. 62 00:02:54,000 --> 00:02:54,880 Speaker 2: The United States. 63 00:02:54,960 --> 00:02:56,640 Speaker 1: He was one of, of course, one of the original 64 00:02:56,639 --> 00:02:58,959 Speaker 1: founding fathers, and he warned us all the way back 65 00:02:58,960 --> 00:03:03,080 Speaker 1: in eighteen oh two. He said, quote, the banking institutions 66 00:03:03,200 --> 00:03:07,000 Speaker 1: are more dangerous to our liberties than standing armies. If 67 00:03:07,040 --> 00:03:10,200 Speaker 1: the American people ever allow private banks to control the 68 00:03:10,280 --> 00:03:14,440 Speaker 1: issue of their currency, first by inflation, then by deflation. 69 00:03:14,919 --> 00:03:18,760 Speaker 1: The banks will deprive the people of all property until 70 00:03:18,760 --> 00:03:22,480 Speaker 1: their children wake up homeless on the continent their fathers 71 00:03:22,600 --> 00:03:25,840 Speaker 1: conquered end quote. All Right, So look, obviously these guys 72 00:03:25,840 --> 00:03:28,920 Speaker 1: were super smart. Right, They could think in these second 73 00:03:29,040 --> 00:03:32,160 Speaker 1: and third and fourth order effects. Right, they understood the 74 00:03:32,240 --> 00:03:35,240 Speaker 1: real dangers of having a banking system long before those 75 00:03:35,320 --> 00:03:38,480 Speaker 1: dangers were even apparent or visible at the time. Now, 76 00:03:38,640 --> 00:03:42,480 Speaker 1: Jefferson didn't say that banks were greedy, right, which they are. 77 00:03:42,760 --> 00:03:45,160 Speaker 1: He didn't say that they charged too many fees, which 78 00:03:45,360 --> 00:03:48,400 Speaker 1: they do. He said they were more dangerous than armies. 79 00:03:48,840 --> 00:03:52,360 Speaker 1: He said they would systematically strip citizens of their property. 80 00:03:52,640 --> 00:03:55,680 Speaker 1: And he said it would happen so gradually that most 81 00:03:55,680 --> 00:03:59,000 Speaker 1: people wouldn't even see it coming. Now was he being dramatic? 82 00:04:00,600 --> 00:04:04,160 Speaker 1: Was he describing the precise mechanism of how this works. 83 00:04:04,360 --> 00:04:07,080 Speaker 1: What's important to understand is that Jefferson, he wrote this 84 00:04:07,120 --> 00:04:09,640 Speaker 1: before the Federal Reserve even existed, Right. He wrote it 85 00:04:09,680 --> 00:04:12,480 Speaker 1: before Nixon closed the gold window. He wrote it before 86 00:04:12,560 --> 00:04:15,800 Speaker 1: there was any major restructuring of the American money system. 87 00:04:16,200 --> 00:04:18,200 Speaker 2: But he knew it because he was watching. 88 00:04:17,839 --> 00:04:19,800 Speaker 1: The early formation of banking power. 89 00:04:20,080 --> 00:04:20,240 Speaker 2: Right. 90 00:04:20,279 --> 00:04:22,279 Speaker 1: He was alarmed enough to write it down as a 91 00:04:22,320 --> 00:04:26,320 Speaker 1: warning for future generations. Now, unfortunately for us today that 92 00:04:26,440 --> 00:04:29,000 Speaker 1: warning it wasn't taken seriously. So here we are two 93 00:04:29,040 --> 00:04:31,640 Speaker 1: hundred years later, and the system that he was afraid of, 94 00:04:32,200 --> 00:04:34,839 Speaker 1: the system he feared, it's the exact system that we 95 00:04:34,920 --> 00:04:37,279 Speaker 1: have a right. But now that you understand what Trump 96 00:04:37,320 --> 00:04:38,400 Speaker 1: is actually fighting for. 97 00:04:39,160 --> 00:04:39,840 Speaker 2: But of course, if. 98 00:04:39,760 --> 00:04:41,640 Speaker 1: You're not out to speed on the specifics, you need 99 00:04:41,680 --> 00:04:43,920 Speaker 1: a little bit of context on what's been happening in 100 00:04:44,040 --> 00:04:47,200 Speaker 1: Washington over the last year, right, because yeah, this didn't 101 00:04:47,240 --> 00:04:49,240 Speaker 1: just start this week, right, this has been going on 102 00:04:49,320 --> 00:04:52,000 Speaker 1: at least since the beginning of the year. It's started 103 00:04:52,000 --> 00:04:54,479 Speaker 1: really when Trump came back into office. Now, one of 104 00:04:54,480 --> 00:04:57,960 Speaker 1: the stated priorities was making the US the crypto capital 105 00:04:58,040 --> 00:04:58,600 Speaker 1: of the world. 106 00:04:58,760 --> 00:04:59,880 Speaker 2: Now he actually started. 107 00:04:59,640 --> 00:05:01,760 Speaker 1: Delivering on that, right. So earlier this year we saw 108 00:05:01,800 --> 00:05:05,080 Speaker 1: Congress pass what's called the Genius Act, and that was 109 00:05:05,120 --> 00:05:08,520 Speaker 1: a really big deal. It was the first federal regulatory 110 00:05:08,560 --> 00:05:11,120 Speaker 1: framework for stable coins that was ever passed in the 111 00:05:11,200 --> 00:05:14,279 Speaker 1: United States. It was the first time there were clear 112 00:05:14,400 --> 00:05:18,159 Speaker 1: rules around what a stable coin is, how they should work, 113 00:05:18,360 --> 00:05:21,120 Speaker 1: and more importantly, who can issue one. Now, if you're 114 00:05:21,120 --> 00:05:22,679 Speaker 1: wondering why stable coins even matter. 115 00:05:23,080 --> 00:05:24,440 Speaker 2: Hang on, I'm gonna. 116 00:05:24,200 --> 00:05:26,400 Speaker 1: Get to that in a second, because that's that's really 117 00:05:26,480 --> 00:05:29,200 Speaker 1: at the heart of this entire fight. Now, the Genius 118 00:05:29,240 --> 00:05:32,520 Speaker 1: Act was just the first step, right, this, it was 119 00:05:32,560 --> 00:05:35,040 Speaker 1: the first piece. But the next piece of legislation is 120 00:05:35,040 --> 00:05:37,360 Speaker 1: what's called the Clarity Act. Right And this is where 121 00:05:37,400 --> 00:05:40,520 Speaker 1: it gets even bigger because the Clarity Act passed already 122 00:05:40,520 --> 00:05:43,720 Speaker 1: through the House. It's now sitting in the Senate Banking Committee, 123 00:05:43,800 --> 00:05:47,320 Speaker 1: and if it's passed, it creates clear regulatory framework for 124 00:05:47,400 --> 00:05:51,120 Speaker 1: the entire digital asset market, which I know it sounds 125 00:05:51,320 --> 00:05:54,279 Speaker 1: brain I get that. But buried inside this bill is 126 00:05:54,480 --> 00:05:58,760 Speaker 1: one specific provision. It's section four O four all right. Now, 127 00:05:58,880 --> 00:06:01,760 Speaker 1: Section four four is the was what the mainstream press 128 00:06:02,160 --> 00:06:03,839 Speaker 1: are completely missing. 129 00:06:04,040 --> 00:06:06,159 Speaker 2: Maybe they're completely ignoring, but it's. 130 00:06:05,960 --> 00:06:08,679 Speaker 1: The reason that the banks are spending tens of millions 131 00:06:08,720 --> 00:06:11,200 Speaker 1: of dollars to make sure this bill never sees the 132 00:06:11,240 --> 00:06:14,440 Speaker 1: Senate vote. Now, President Trump wants these bills to go through. 133 00:06:14,800 --> 00:06:17,520 Speaker 1: He wants the US to lead in everything. He wants 134 00:06:17,560 --> 00:06:21,320 Speaker 1: the US to lead in technology and every area of technology, 135 00:06:21,320 --> 00:06:25,320 Speaker 1: including banking. But the banks, they're quietly lobbying behind the 136 00:06:25,360 --> 00:06:28,719 Speaker 1: scenes to kill this administrative bill, the Clarity Act. 137 00:06:28,800 --> 00:06:29,440 Speaker 2: They don't want it. 138 00:06:29,800 --> 00:06:32,159 Speaker 1: Trump certainly has his hands full right now with everything 139 00:06:32,160 --> 00:06:34,760 Speaker 1: that's going on in the world, like right now, but 140 00:06:34,839 --> 00:06:37,960 Speaker 1: he's still watching all this happen, and apparently he's had enough, 141 00:06:38,040 --> 00:06:40,640 Speaker 1: right so he went this week onto true social and 142 00:06:40,680 --> 00:06:44,160 Speaker 1: he posted something that, well, most of what he does 143 00:06:44,200 --> 00:06:46,520 Speaker 1: we've never seen from any sitting president, and certainly what 144 00:06:46,600 --> 00:06:49,279 Speaker 1: he said here has never been said by any president, 145 00:06:49,320 --> 00:06:52,320 Speaker 1: at least publicly. And he called out the banks directly. 146 00:06:52,600 --> 00:06:55,760 Speaker 1: He said the Genius Act is being threatened and undermined 147 00:06:55,960 --> 00:06:59,240 Speaker 1: by the banks, and that's unacceptable. He said that Americans 148 00:06:59,240 --> 00:07:01,400 Speaker 1: should be earning more money on their money. He said 149 00:07:01,400 --> 00:07:04,000 Speaker 1: that the banks are hitting record profits while trying to 150 00:07:04,200 --> 00:07:06,200 Speaker 1: undermine the crypto agenda. 151 00:07:06,440 --> 00:07:08,240 Speaker 2: And he said the banks should not. 152 00:07:08,160 --> 00:07:11,320 Speaker 1: Be holding the Clarity Act hostage. And he named him, 153 00:07:11,320 --> 00:07:13,600 Speaker 1: He called him out right on his public platform as 154 00:07:13,680 --> 00:07:15,120 Speaker 1: president of the United States. 155 00:07:15,560 --> 00:07:16,440 Speaker 2: Now, a lot of. 156 00:07:16,440 --> 00:07:19,240 Speaker 1: People they read that and they think, oh, yeah, whatever, 157 00:07:19,280 --> 00:07:22,960 Speaker 1: Trump's just doing whatever Trump's doing right political posturing. But 158 00:07:23,000 --> 00:07:26,360 Speaker 1: the context matters here. Trump came into office wanting to 159 00:07:26,360 --> 00:07:29,640 Speaker 1: make America the crypto capital of the world. He sees 160 00:07:29,680 --> 00:07:33,200 Speaker 1: ai he sees crypto as the next frontier of American 161 00:07:33,320 --> 00:07:36,320 Speaker 1: economic leadership, and so he doesn't want to let the 162 00:07:36,320 --> 00:07:40,280 Speaker 1: old guard, right, the technology adverse banks hold the American 163 00:07:40,320 --> 00:07:43,440 Speaker 1: people hostage over it. Now, the most powerful person on 164 00:07:43,480 --> 00:07:46,880 Speaker 1: earth has publicly picked the fight with the bank, Right, 165 00:07:47,120 --> 00:07:49,720 Speaker 1: he's chosen his side. Now to understand why the banks 166 00:07:49,720 --> 00:07:51,560 Speaker 1: are on the other side, Why are they willing to 167 00:07:51,600 --> 00:07:54,280 Speaker 1: go to war with the president over a stable coin bill? 168 00:07:54,720 --> 00:07:56,240 Speaker 2: Well, you need to understand. 169 00:07:55,880 --> 00:07:58,840 Speaker 1: Exactly what it is that they're protecting. Now, this is 170 00:07:58,880 --> 00:08:01,600 Speaker 1: the part where Jefferson, like his warning, it starts to 171 00:08:01,640 --> 00:08:05,960 Speaker 1: make sense. Right now, there's approximately six point six trillion 172 00:08:06,040 --> 00:08:09,200 Speaker 1: dollars sitting in customer deposits at US banks. 173 00:08:09,760 --> 00:08:10,960 Speaker 2: Six point six trillion. 174 00:08:11,400 --> 00:08:15,440 Speaker 1: That's your savings, that's your checking account, that's your emergency fund, 175 00:08:15,760 --> 00:08:17,040 Speaker 1: and it's all parked at the bank. 176 00:08:17,400 --> 00:08:18,360 Speaker 2: And what do they. 177 00:08:18,240 --> 00:08:21,280 Speaker 1: Pay you for the privilege of holding your money? They 178 00:08:21,280 --> 00:08:25,000 Speaker 1: pay you about zero point one percent, maybe if you're lucky, 179 00:08:25,040 --> 00:08:28,240 Speaker 1: ten basis points. Meanwhile, at a minimum, the banks are 180 00:08:28,240 --> 00:08:31,320 Speaker 1: making two hundred billion a year on that same money 181 00:08:31,960 --> 00:08:35,240 Speaker 1: risk free. They take your deposits and then they lind 182 00:08:35,240 --> 00:08:37,640 Speaker 1: it back out at six or seven or eight percent 183 00:08:38,080 --> 00:08:41,560 Speaker 1: on mortgages, on car loans, on credit cards, and then 184 00:08:41,760 --> 00:08:44,840 Speaker 1: they pocket the whole difference and then you ear nothing. 185 00:08:45,280 --> 00:08:47,480 Speaker 2: Now, Jefferson called it out right. He said, the banks are. 186 00:08:47,360 --> 00:08:53,040 Speaker 1: Depreciating your wealth slowly, quietly, every single year. Now, your 187 00:08:53,040 --> 00:08:56,240 Speaker 1: bank tells you that you know, your money's available anytime, right, 188 00:08:56,280 --> 00:08:58,800 Speaker 1: it's liquid, it's on demand anytime. You can come withdraw it, 189 00:08:59,520 --> 00:09:01,760 Speaker 1: come to draw it tomorre if you want. But the 190 00:09:01,840 --> 00:09:04,520 Speaker 1: reality is different. Right, the second you deposit that money, 191 00:09:05,080 --> 00:09:07,560 Speaker 1: the bank loans it out, not for a week, not 192 00:09:07,640 --> 00:09:12,280 Speaker 1: for a month, sometimes fifteen years, twenty years, sometimes thirty years. Right, 193 00:09:12,480 --> 00:09:15,440 Speaker 1: that's your neighbor's mortgage. That's a commercial real estate loan, 194 00:09:15,760 --> 00:09:18,000 Speaker 1: that's a I don't know, a seven year car loan. 195 00:09:18,559 --> 00:09:21,480 Speaker 1: Your money has been deployed. It's not stored there at 196 00:09:21,480 --> 00:09:25,560 Speaker 1: the bank. This is called fractional reserve banking. And it 197 00:09:25,640 --> 00:09:28,280 Speaker 1: works as long as everyone doesn't ask for their money 198 00:09:28,320 --> 00:09:31,640 Speaker 1: back at the same time. So here's the problem, right, 199 00:09:31,679 --> 00:09:36,439 Speaker 1: The Clarity Act creates this problem for them where Americans 200 00:09:36,480 --> 00:09:40,320 Speaker 1: suddenly have a legal, safe alternative that could pay them yield. 201 00:09:40,720 --> 00:09:43,440 Speaker 1: That's the piece. Banks don't want to pay you anything. 202 00:09:43,920 --> 00:09:46,240 Speaker 1: But if I can put my money into stable coins 203 00:09:46,440 --> 00:09:49,960 Speaker 1: and earn a yield, say three point six percent, instead 204 00:09:49,960 --> 00:09:51,880 Speaker 1: of the zero point one percent. 205 00:09:52,280 --> 00:09:53,360 Speaker 2: Well, then what are we going to do. 206 00:09:53,360 --> 00:09:56,880 Speaker 1: We're gonna start moving our money intostable coins, and we're 207 00:09:56,880 --> 00:09:59,480 Speaker 1: going to move all our money into stable coins. And 208 00:09:59,520 --> 00:10:02,360 Speaker 1: when we move all of our money over there, well, 209 00:10:02,679 --> 00:10:04,920 Speaker 1: the banks don't have it. They can't just give it back. 210 00:10:05,240 --> 00:10:08,359 Speaker 1: There is no money to hand back, right, it's all sitting. 211 00:10:08,120 --> 00:10:09,240 Speaker 2: In thirty year mortgages. 212 00:10:09,320 --> 00:10:12,600 Speaker 1: It's in a mortgage in your friend's place in Phoenix, Arizona. 213 00:10:12,760 --> 00:10:15,920 Speaker 1: If deposits leave at scale, well, the banks can't do 214 00:10:15,960 --> 00:10:18,680 Speaker 1: anything about it, right, they can't liquidate those loans overnight 215 00:10:18,720 --> 00:10:23,360 Speaker 1: to cover the withdraws. That's what's called a bankrunt. It's existential, right. 216 00:10:23,360 --> 00:10:26,600 Speaker 1: They either they're either forced to compete I guess by 217 00:10:26,640 --> 00:10:28,640 Speaker 1: paying us the real yield. They could just do that, 218 00:10:28,960 --> 00:10:32,120 Speaker 1: but that destroys their profit margin, or they watch their 219 00:10:32,120 --> 00:10:33,600 Speaker 1: deposits walk out the door. 220 00:10:33,800 --> 00:10:34,000 Speaker 2: Right. 221 00:10:34,320 --> 00:10:36,839 Speaker 1: But neither of those options work for them. That's why 222 00:10:36,840 --> 00:10:38,839 Speaker 1: they're going to war. That's why they're going to war 223 00:10:38,920 --> 00:10:41,160 Speaker 1: over this, not because they're going to make less profitable, 224 00:10:41,200 --> 00:10:45,560 Speaker 1: because the math on enough exits doesn't end with a 225 00:10:45,600 --> 00:10:49,800 Speaker 1: smaller business, it ends their business. Now, Jefferson saw this 226 00:10:50,000 --> 00:10:52,280 Speaker 1: fragility right two hundred years ago. He didn't just have 227 00:10:52,320 --> 00:10:55,400 Speaker 1: a word for it yet. He didn't understand the mechanism, 228 00:10:55,520 --> 00:10:58,559 Speaker 1: but he knew that. Okay, So now that you understand 229 00:10:58,559 --> 00:11:00,600 Speaker 1: what the banks are protecting, just take a look at 230 00:11:00,600 --> 00:11:03,280 Speaker 1: the historical context for why this moment. 231 00:11:03,040 --> 00:11:04,560 Speaker 2: Is so big and so significant. 232 00:11:04,600 --> 00:11:08,720 Speaker 1: Because the money system it's only been restructured twice in 233 00:11:08,760 --> 00:11:11,720 Speaker 1: the last one hundred years. This is the third time now. 234 00:11:11,720 --> 00:11:15,000 Speaker 1: Both times previously, the people who understood what was happening 235 00:11:15,240 --> 00:11:19,160 Speaker 1: built generational wealth. The people who didn't, though, they got 236 00:11:19,240 --> 00:11:21,400 Speaker 1: left behind. First time that we saw all this happened 237 00:11:21,480 --> 00:11:23,120 Speaker 1: restructure was in nineteen thirteen. 238 00:11:23,520 --> 00:11:24,040 Speaker 2: That's when the. 239 00:11:24,000 --> 00:11:28,280 Speaker 1: Bankers pressured Congress into creating the Federal Reserve, and for 240 00:11:28,320 --> 00:11:31,560 Speaker 1: the first time in American history, a central bank controlled 241 00:11:31,559 --> 00:11:35,200 Speaker 1: the money supply. This was private banks. Private banks got 242 00:11:35,200 --> 00:11:37,439 Speaker 1: the keys to the kingdom right. They could now create 243 00:11:37,520 --> 00:11:39,360 Speaker 1: money out of thin air. They could now set the 244 00:11:39,400 --> 00:11:41,800 Speaker 1: price of money, set the rates. They could decide who 245 00:11:41,800 --> 00:11:45,120 Speaker 1: gets access to capital and the average American they had 246 00:11:45,120 --> 00:11:48,959 Speaker 1: no idea, They didn't know what happened and honestly, most 247 00:11:49,000 --> 00:11:52,000 Speaker 1: people still don't. If you care about that, I'd recommend 248 00:11:52,000 --> 00:11:55,400 Speaker 1: reading the book called The Creature from Jekyl Island. And 249 00:11:55,480 --> 00:11:56,960 Speaker 1: if you want me to go deeper on that, maybe 250 00:11:56,960 --> 00:11:58,640 Speaker 1: make a video on it. You could drop a comment 251 00:11:58,679 --> 00:12:00,640 Speaker 1: down below. Maybe I'll make a video on that. But 252 00:12:00,679 --> 00:12:02,760 Speaker 1: the second time that we saw this restructure was in 253 00:12:02,840 --> 00:12:06,520 Speaker 1: nineteen seventy one, then President Richard Nixon. He closed the 254 00:12:06,520 --> 00:12:10,160 Speaker 1: gold window. Right up until that point, every single dollar 255 00:12:10,280 --> 00:12:13,040 Speaker 1: in your pocket or your bank was backed by actual gold. 256 00:12:13,200 --> 00:12:15,760 Speaker 1: But of course Nixon ended that overnight, right, so from 257 00:12:15,840 --> 00:12:19,959 Speaker 1: that point on, money could be printed without any limit. Now, 258 00:12:20,000 --> 00:12:22,520 Speaker 1: of course, of course the banks loved that, right, like 259 00:12:22,559 --> 00:12:25,079 Speaker 1: when you can create unlimitted money, Well, the people who 260 00:12:25,120 --> 00:12:28,800 Speaker 1: sit closest to the money supply the printer, they win, right, 261 00:12:28,800 --> 00:12:32,400 Speaker 1: That's called the Cantalon effect. But everybody else, the savers, 262 00:12:32,480 --> 00:12:35,319 Speaker 1: the wage earners, and anybody that holds cash will they 263 00:12:35,360 --> 00:12:39,200 Speaker 1: lose purchasing power every single year. Now, both times the 264 00:12:39,240 --> 00:12:42,560 Speaker 1: money system changed, there was a window, a small window 265 00:12:42,600 --> 00:12:44,960 Speaker 1: to get on the right side of it, maybe a 266 00:12:44,960 --> 00:12:48,680 Speaker 1: short window, and most people missed it both times. And 267 00:12:48,720 --> 00:12:52,360 Speaker 1: now here we are twenty twenty six. I believe we're watching. 268 00:12:52,160 --> 00:12:53,640 Speaker 2: The third restructuring all right. 269 00:12:53,679 --> 00:12:56,440 Speaker 1: Now, this is not because of one tweet or one 270 00:12:56,480 --> 00:13:00,240 Speaker 1: post on true social It's not because of just one bill. Because, 271 00:13:00,280 --> 00:13:04,040 Speaker 1: for the first time since nineteen thirteen, the infrastructure of 272 00:13:04,200 --> 00:13:07,439 Speaker 1: money itself is being cracked open to competition. 273 00:13:07,760 --> 00:13:08,040 Speaker 2: Right. 274 00:13:08,200 --> 00:13:10,800 Speaker 1: The banks have had this monopoly for over one hundred years, 275 00:13:11,120 --> 00:13:14,240 Speaker 1: and this very week the walls all started coming down, 276 00:13:14,320 --> 00:13:17,160 Speaker 1: and actually on two fronts. Right, So the first Trump 277 00:13:17,240 --> 00:13:19,200 Speaker 1: joined the fight, right, we talked about that. But the 278 00:13:19,240 --> 00:13:22,080 Speaker 1: second one that happened this week, I think it's even. 279 00:13:21,880 --> 00:13:22,760 Speaker 2: A bigger story. 280 00:13:22,760 --> 00:13:25,440 Speaker 1: And I haven't really heard anybody talking about this, and 281 00:13:25,520 --> 00:13:28,720 Speaker 1: that is that Kraken just became the first crypto company 282 00:13:29,000 --> 00:13:32,520 Speaker 1: in history to get direct access to the Federal Reserves 283 00:13:32,600 --> 00:13:35,400 Speaker 1: payment system. Now, if you don't know, Kracken is one 284 00:13:35,400 --> 00:13:38,439 Speaker 1: of the largest crypto exchanges in the world, and they 285 00:13:38,440 --> 00:13:41,960 Speaker 1: were just granted what's called a FED Master account. Basically, 286 00:13:42,000 --> 00:13:44,360 Speaker 1: what that means is that now Kraken can move money 287 00:13:44,400 --> 00:13:48,600 Speaker 1: directly through the Federal Reserves payment infrastructure. They don't need 288 00:13:48,640 --> 00:13:51,760 Speaker 1: a bank intermediary, they don't need a correspondent bank. They 289 00:13:51,800 --> 00:13:55,679 Speaker 1: have direct access, the same access that until this week 290 00:13:56,120 --> 00:13:59,800 Speaker 1: only banks had. That means the monopoly on transactions thing 291 00:13:59,840 --> 00:14:02,960 Speaker 1: that Jefferson warned us about, the thing banks have protected 292 00:14:02,960 --> 00:14:05,600 Speaker 1: for over one hundred years, just got its first real 293 00:14:05,679 --> 00:14:09,319 Speaker 1: crack in it, and the bank crack in it. Cracking 294 00:14:09,559 --> 00:14:13,480 Speaker 1: no pun intended is but the banks immediately have been 295 00:14:13,480 --> 00:14:15,880 Speaker 1: losing their mind over this. Right, We saw the Bank 296 00:14:15,920 --> 00:14:20,600 Speaker 1: Policy Institute, which represents JP Morgan, Bank of America, Wells Fargo, 297 00:14:20,720 --> 00:14:25,440 Speaker 1: Goldman Sachs. They said they were deeply concerned quote unquote 298 00:14:25,480 --> 00:14:29,600 Speaker 1: deeply concerned. The Independent Community Bankers said it posed quote 299 00:14:30,000 --> 00:14:34,440 Speaker 1: risks to the banking system end quote. Notice what they 300 00:14:34,440 --> 00:14:37,600 Speaker 1: didn't say. They didn't say it poses risk to consumers. 301 00:14:38,120 --> 00:14:41,560 Speaker 1: They didn't say it's poses risk for the economy. They 302 00:14:41,600 --> 00:14:45,280 Speaker 1: said the risk it risks the banking system, right, which 303 00:14:45,320 --> 00:14:48,840 Speaker 1: is them basically telling you that the system that they're 304 00:14:48,880 --> 00:14:50,200 Speaker 1: in the system they have them. 305 00:14:50,160 --> 00:14:50,680 Speaker 2: Not beyond. 306 00:14:50,800 --> 00:14:52,960 Speaker 1: That's what they're worried about, not you and I, not 307 00:14:53,040 --> 00:14:54,800 Speaker 1: our savings, not the economy. 308 00:14:54,960 --> 00:14:55,120 Speaker 2: Right. 309 00:14:55,160 --> 00:14:58,320 Speaker 1: We actually have a real world example of what happens 310 00:14:58,480 --> 00:15:01,920 Speaker 1: when you open payment infrastructure to non banks. This isn't 311 00:15:02,280 --> 00:15:05,120 Speaker 1: anything new, just new in the United States. Over in 312 00:15:05,200 --> 00:15:07,160 Speaker 1: Europe they've had it open. We can see the Bank 313 00:15:07,200 --> 00:15:10,680 Speaker 1: of England did this in twenty seventeen. Today there's over 314 00:15:10,840 --> 00:15:14,960 Speaker 1: three hundred non bank institutions that operate in the UK 315 00:15:15,000 --> 00:15:18,760 Speaker 1: payment system and the payments over there. They got cheaper, 316 00:15:19,040 --> 00:15:22,000 Speaker 1: they got faster, they got more competitive across the board, 317 00:15:22,000 --> 00:15:24,400 Speaker 1: which is what happens when you have competition, which is 318 00:15:24,400 --> 00:15:28,320 Speaker 1: of course great for consumers, it's terrible for banks collecting 319 00:15:28,800 --> 00:15:32,080 Speaker 1: I don't fat fees on every single transaction. Now, the 320 00:15:32,160 --> 00:15:35,640 Speaker 1: legislation is one front of this war. The infrastructure is 321 00:15:35,680 --> 00:15:39,040 Speaker 1: being built simultaneously, and the banks can't lobby their way 322 00:15:39,080 --> 00:15:41,640 Speaker 1: out of what already exists. Now that you sort of 323 00:15:41,760 --> 00:15:45,760 Speaker 1: understand the stakes, right, you understand the historical context, here's 324 00:15:45,760 --> 00:15:48,280 Speaker 1: something that's going to reframe everything you've watched happen in 325 00:15:48,280 --> 00:15:51,720 Speaker 1: crypto over the last seven or eight years. Now, the 326 00:15:51,800 --> 00:15:55,040 Speaker 1: banks they've been here before, right, every single time crypto's 327 00:15:55,080 --> 00:15:58,080 Speaker 1: threat in their monopoly, they've run the exact same playbook. 328 00:15:58,400 --> 00:16:01,520 Speaker 1: Step one, scare the public, right, get all the CEOs 329 00:16:01,560 --> 00:16:04,160 Speaker 1: on TV. Call it a fraud, call it, you know, 330 00:16:04,280 --> 00:16:07,280 Speaker 1: rat poison, call it a pyramid scheme like whatever, right, 331 00:16:07,320 --> 00:16:11,720 Speaker 1: Like make retail investors feel stupid for owning it. 332 00:16:11,760 --> 00:16:12,680 Speaker 2: Make them feel scared. 333 00:16:12,760 --> 00:16:15,960 Speaker 1: Right, And in twenty seventeen, Jamie Diamond called bitcoin a fraud. 334 00:16:16,400 --> 00:16:20,400 Speaker 1: Warren Buffett called it rat poison squared. Howard Marks called 335 00:16:20,400 --> 00:16:21,440 Speaker 1: it a pyramid scheme. 336 00:16:21,520 --> 00:16:21,760 Speaker 2: Right. 337 00:16:22,120 --> 00:16:26,280 Speaker 1: Step two lobby Washington right to try to kill the legislation. 338 00:16:26,640 --> 00:16:29,760 Speaker 1: Back in twenty seventeen, banks spent over sixty five million 339 00:16:29,880 --> 00:16:33,400 Speaker 1: dollars lobbying to block a federal proposal that would have 340 00:16:33,480 --> 00:16:36,160 Speaker 1: let crypto firms compete with traditional banks. 341 00:16:36,320 --> 00:16:38,720 Speaker 2: And of course the bill never made it to the vote. 342 00:16:38,840 --> 00:16:41,200 Speaker 1: Bitcoin crashed from twenty thousand all the way down to 343 00:16:41,240 --> 00:16:46,480 Speaker 1: three thousand. Okay, Step number three, by the dip while 344 00:16:46,520 --> 00:16:49,160 Speaker 1: retails scared out of their positions and the price comes down, 345 00:16:49,240 --> 00:16:53,600 Speaker 1: Then the institutions quietly start to accumulate. All right, after 346 00:16:53,640 --> 00:16:56,760 Speaker 1: that happens. Step four, repackage and sell it. 347 00:16:57,400 --> 00:16:59,160 Speaker 2: Who do they sell back to? You? 348 00:16:59,680 --> 00:17:03,080 Speaker 1: Put it in a shiny etf rapper, right, charge a fee, 349 00:17:03,480 --> 00:17:07,679 Speaker 1: call it a financial product. That's the playbook, right, And 350 00:17:07,720 --> 00:17:09,680 Speaker 1: they've run it at least twice, and we can see 351 00:17:09,680 --> 00:17:12,159 Speaker 1: it right here, like look, Larry Fink, he's the CEO 352 00:17:12,200 --> 00:17:15,480 Speaker 1: of Blackrock, the largest asset manager in the world, over 353 00:17:15,640 --> 00:17:19,880 Speaker 1: ten trillion dollars in assets, and he called bitcoin an 354 00:17:19,960 --> 00:17:22,640 Speaker 1: index of money laundering back in twenty seventeen. 355 00:17:22,920 --> 00:17:24,840 Speaker 2: But in January of twenty twenty. 356 00:17:24,720 --> 00:17:29,080 Speaker 1: Four, Blackrock launched a spot bitcoin etf By late twenty 357 00:17:29,119 --> 00:17:32,679 Speaker 1: twenty five, they were making twenty million a month in 358 00:17:32,760 --> 00:17:36,080 Speaker 1: fees from that product alone. In two years, it became 359 00:17:36,119 --> 00:17:40,600 Speaker 1: their most profitable etf ever. Larry Fink, the same man, right, 360 00:17:40,680 --> 00:17:44,280 Speaker 1: the same asset bitcoin, but a complete reversal. It happened 361 00:17:44,280 --> 00:17:46,720 Speaker 1: the moment he figured out how to monetize it, so 362 00:17:46,800 --> 00:17:50,200 Speaker 1: scare you out of it. They buy the dip, they 363 00:17:50,280 --> 00:17:52,960 Speaker 1: repackage it and sell it to you. Now, look, he 364 00:17:53,000 --> 00:17:55,080 Speaker 1: probably knew the whole time. They just wanted to make 365 00:17:55,119 --> 00:17:57,399 Speaker 1: sure they were the ones selling it to you. And 366 00:17:57,440 --> 00:17:59,359 Speaker 1: now last year we can see the bank lobby and 367 00:17:59,440 --> 00:18:03,040 Speaker 1: hit eighty seven million dollars at twelve percent jump, the 368 00:18:03,080 --> 00:18:05,399 Speaker 1: highest level since two thousand and eight when they're fighting 369 00:18:05,440 --> 00:18:07,160 Speaker 1: off the post crisis regulation. 370 00:18:07,600 --> 00:18:09,760 Speaker 2: Now that number tells you how threatened they feel. 371 00:18:09,800 --> 00:18:13,320 Speaker 1: Right now, they're running the same playbook, the same playbook 372 00:18:13,359 --> 00:18:16,400 Speaker 1: we see all the time, the same fear, the same lobbying, 373 00:18:16,640 --> 00:18:19,879 Speaker 1: the same manufactured uncertainty. But the difference this time is 374 00:18:19,920 --> 00:18:23,040 Speaker 1: that the President of the United States is actively working 375 00:18:23,240 --> 00:18:27,400 Speaker 1: against them. All right, So that's the news, that's the context, 376 00:18:27,400 --> 00:18:31,680 Speaker 1: that's the history, that's the underlying mechanism, that's the why 377 00:18:31,800 --> 00:18:34,200 Speaker 1: behind this banking war that you see happening right now. 378 00:18:34,359 --> 00:18:38,520 Speaker 1: But let's talk about what happens next, what happens from here, 379 00:18:38,520 --> 00:18:40,760 Speaker 1: and more importantly, what should you and I be doing 380 00:18:40,760 --> 00:18:43,399 Speaker 1: about this? How do we think about this now? We 381 00:18:43,480 --> 00:18:46,720 Speaker 1: have a very recent roadmap for this. Last year, Congress 382 00:18:46,760 --> 00:18:49,600 Speaker 1: passed the Genius Act, right, this was the first federal 383 00:18:49,640 --> 00:18:53,000 Speaker 1: stable coin framework that went through. Now, what we saw 384 00:18:53,240 --> 00:18:57,200 Speaker 1: is as the bill started advancing through Congress, bitcoin ran 385 00:18:57,240 --> 00:19:00,240 Speaker 1: from seventy four thousand to as high as a undred 386 00:19:00,240 --> 00:19:03,480 Speaker 1: and twenty six thousand. And that's not like a coincidence. 387 00:19:03,840 --> 00:19:08,720 Speaker 1: When regulatory uncertainty clears capital that's been sitting on the sideline, 388 00:19:08,760 --> 00:19:11,760 Speaker 1: it starts coming in. It's been waiting for clarity, and 389 00:19:11,760 --> 00:19:13,920 Speaker 1: so it comes in fast. And when the capital moves 390 00:19:13,920 --> 00:19:16,880 Speaker 1: into Bitcoin, then it moves the price up. The Clarity 391 00:19:16,920 --> 00:19:19,520 Speaker 1: Act that's the next step, right. It's way bigger than 392 00:19:19,520 --> 00:19:22,439 Speaker 1: the Genius Act, because the Clarity Act doesn't just regulate 393 00:19:22,480 --> 00:19:26,760 Speaker 1: stable coins, it creates framework to the entire digital asset market. 394 00:19:27,000 --> 00:19:31,000 Speaker 1: It legitimizes the entire ecosystem, and Section four or four 395 00:19:31,400 --> 00:19:34,560 Speaker 1: the stable coin yield provision that starts pulling capital out 396 00:19:34,560 --> 00:19:38,360 Speaker 1: of the banking system and into the crypto infrastructure. All right, 397 00:19:38,760 --> 00:19:42,159 Speaker 1: so we have a documented recent example of exactly what 398 00:19:42,200 --> 00:19:45,639 Speaker 1: happens when crypto regulation advances, and we can see the setup. 399 00:19:45,640 --> 00:19:47,160 Speaker 2: It's all forming right now. 400 00:19:47,680 --> 00:19:49,960 Speaker 1: And look, I'm not going to tell you exactly when 401 00:19:50,000 --> 00:19:52,760 Speaker 1: this passes or you know what bitcoin's going to do, 402 00:19:52,800 --> 00:19:55,719 Speaker 1: because obviously I don't know that nobody knows that we 403 00:19:55,720 --> 00:19:58,640 Speaker 1: could see more volatility before the breakout. I'm guessing that's 404 00:19:58,640 --> 00:20:01,439 Speaker 1: probably what we'll see, right, it's the nature of this asset. 405 00:20:01,480 --> 00:20:04,760 Speaker 1: But here's what we do know. The nineteen thirteen restructuring 406 00:20:04,920 --> 00:20:07,920 Speaker 1: created generational wealth for the people who understood it. The 407 00:20:08,000 --> 00:20:11,800 Speaker 1: nineteen seventy one restructuring it did the same thing. Both times, 408 00:20:11,920 --> 00:20:16,320 Speaker 1: there was a window, and both times most people missed it, right, 409 00:20:16,560 --> 00:20:18,680 Speaker 1: and we're in that window right now. The banks for 410 00:20:18,800 --> 00:20:21,480 Speaker 1: fighting this because they have to. Trump is pushing this 411 00:20:21,560 --> 00:20:25,080 Speaker 1: because he has to. The infrastructure is being built because 412 00:20:25,400 --> 00:20:27,920 Speaker 1: the market once it, the market demands it. Now, when 413 00:20:27,960 --> 00:20:31,120 Speaker 1: those three forces are moving in the same direction at 414 00:20:31,160 --> 00:20:34,880 Speaker 1: the same time. That's not coincidence, that's momentum. 415 00:20:35,359 --> 00:20:36,800 Speaker 2: So the question that. 416 00:20:36,920 --> 00:20:40,320 Speaker 1: I would spend time on, the question we're spending some 417 00:20:40,440 --> 00:20:44,440 Speaker 1: thought on, isn't whether this happens. It's whether you understand 418 00:20:44,480 --> 00:20:47,639 Speaker 1: it well enough to act before everybody else catches on right, 419 00:20:47,680 --> 00:20:50,879 Speaker 1: And that's exactly what I've been building inside the wealth Os. 420 00:20:50,920 --> 00:20:54,040 Speaker 1: We build around that, not just owning bitcoin, but understanding 421 00:20:54,080 --> 00:20:56,600 Speaker 1: how to structure your assets so that when moments like 422 00:20:56,640 --> 00:20:58,399 Speaker 1: this play out, you're already on the right side of 423 00:20:58,440 --> 00:21:01,920 Speaker 1: the transfer. The wars underway, Jefferson warned us what's coming 424 00:21:02,000 --> 00:21:04,280 Speaker 1: right now. You know what's actually at stake. 425 00:21:04,560 --> 00:21:05,359 Speaker 2: Now. If you want to go 426 00:21:05,400 --> 00:21:08,720 Speaker 1: Even deeper on the mechanics of the banks, the duration mismatch, 427 00:21:08,920 --> 00:21:11,359 Speaker 1: what this really means for the financial system long term, 428 00:21:11,480 --> 00:21:13,560 Speaker 1: then you might want to watch this video right here, 429 00:21:13,920 --> 00:21:14,840 Speaker 1: and I'll see you over there.