All right, everyone. Welcome to the first episode of the Peruvian Bull podcast. I have a special guest today. Stormy Waters. He’s a internet and  finance guy, a VC fund manager. One of my friends I’ve been talking to a lot about the evolution of the Euro dollar system has provided me with some good research and information.

So I’m very excited for this episode today. How are you, sir? Happy to be here. Very happy to be here. Taking your podcast virginity. I’m excited about it. I hope it’s as good for you as it is for me.  Yeah. And I hope your guests really enjoy it. I hope so too. I think, you know, this, This rabbit hole you started to lead me down has been really interesting.

You know, back from back in 2018 when I was first researching, you know, the dollar system and  the gold reserve. And I was following all these gold bugs who are saying the U S dollar market is, is collapsing. There’s massive problems. There’s, you know, we’re going to change from reserve currency status.

And, you know, they have very cogent arguments. A year later, I ran into the first paper I’d ever read on the euro dollar system estimated that it was worth 16 trillion, which is bigger than the U. S. corporate bond market. And it was only a low, a low ball estimate. And the further I’ve driven into this.

Into this field. It seems like it just gets more and more complex and gets deeper. And so, yeah, I don’t know what’s really going on here. Where do you want me to start?  Let’s start at the beginning. I mean, so, yeah, so, you know, I, I, I researched the beginning, like the very, you know, early origins of the system with a Midland bank.

So we can start there post war.  I forgot. I threw, I threw you down the Midland bank rabbit hole. Yes. For anybody that’s listening in there is a. Probably the only good thing to come out of academia related to finance in the last like 10 years, but there’s a came out of University of Glasgow, right?

There’s a study. It’s like a, I’m thinking study like science, but whatever. History professors do paper published on the history of the euro dollar market and like where it came from. And this lady, this professor has like, you could tell, like, there’s a ton of information in there, but you could tell, like, she’s just not able to connect the dots about what this means geopolitically or like what’s actually happening because it’s just the way she’s describing it.

Like, and then this happened and this happened and you’re like, that would be like me describing a murder. Like, and then she the killer went outside. It was 72 degrees outside, and he walked to his car, he held the, like, it, it was wild.  So, the Eurodollar system is it’s used in a lot of thefts. I mean, both like internally from our own people and, and externally, but the euro dollar system represents God, it’s, it’s upsetting to talk about and when I explain it,  he’ll probably be just as angry as I am about it. So the dollar system right now is about  near as makes no difference.

I don’t know. So what’s our let’s take our national, what’s the total debt. And actually, let me see what the, the euro dollar market has shrunk. Considerably very recently,  so, which is also a very interesting piece of geopolitics. Let me see if I can pull it up. I  think the US debt is 33 trillion as of recording in December.

 Right, but so, it’s an F, it’s a The rough estimate is take the U. S. national debt, times that number by nearest makes no difference, nine. And that will give you roughly, I’m sorry I don’t have to explain to everybody how fractional reserve banking works on the Peruvian Bull podcast or else you wouldn’t be listening to the Peruvian Bull podcast.

Right? But that should get you roughly the size of the Eurodollar market. I think it’s like two trillion? I can’t remember. It’s something ridiculous and hopefully before they end the podcast I’ll get like the second one. You’re talking proving that I’ll pull it up, but it is  orders of magnitude, roughly nine to 10 times the size of the domestic dollar market.

So basically whatever the size of M two is nine to 10 times by nine. Yes. Yes.  Which begs the question, right? So this is the, this is the quandary that I have with the Euro dollar market for getting history. This is what got me into the history, I guess. Was I was talking to  a gentleman who is  he’s the head of private banking and credit for JPMorgan Chase.

He’s like  fourth or fifth under Jamie, whatever. I don’t know how the order of succession works. I don’t know how many JP Morgan assassinations there’ve been, at least in upper management, but I mean, in London recently, there seems to have been a lot, but, him and I were talking about just LIBOR in general, like the conversation came about in LIBOR  and  I asked him like, okay, so how are these dollars offshore indexed to LIBOR,  right?

Why are they not indexed to the Fed rate? And he’s like, well, I really don’t know why I’m like, well, the federal reserve sets the interest rate that governs the U S dollar system. Right.  Why are all these instruments denominated in LIBOR? And when that guy tells me, I don’t know, right. I mean, you know, my weekend was ruined because I got a bit of the autisms and I had to get to the bottom.

So by the end of this rabbit hole,  all I had was more questions and let’s been like the first three or four years of like learning about the euro dollar market is everything you learn, you don’t actually get any answers, you just get more questions, right? So when I figure out that the offshore dollar market.

Is 9 times it’s considerably larger. Now, this was right before cobit.  The offshore dollar market is 9 times the size of the domestic dollar market. And it’s   not index to the federal reserve rate.  But it’s indexed to a rate set by 20 European and UK banks, not a fucking U. S. bank among them.

Wait a second,  like if 9 out of every 10 dollars in the world is indexed to LIBOR, then who the fuck is actually in charge,  right? If I own 90 percent of the shares of your company  That’s not your company. That’s my company.

So, oh yeah. So Libor r whoever runs L-I-B-O-R is essentially a more powerful fed without the back press. No,  exactly. Exactly, exactly. And this is why every time before Powell, they would, the, the Fed would try and raise the interest rate, right? The yield curve. The L-I-B-O-R curve would invert, and then the Fed would be forced to pivot. 

Huh. Whether it wanted to or not, right? Like the Fed had to act very often against its own best interest. Why? All right  And then I started seeing it in like play out between day to day like news Right where because up like  well, I’m in my mid thirties, but soon to be pushing late thirties.

So I’ve only really known the era of central bank coordination, right? I wasn’t paying attention up until like 2008, you know, and I was roughly just getting out of school. So my entire financially literate life. Was the era of central bank coordination, right? Where everybody meets at the BIS and I don’t know, you know, probably fuck a bunch of little kids or whatever we think that they do and the, or eat their blood. 

Eat their blood, drink their blood,  eat their, eat their organs. Yeah. Whatever. I don’t, I mean, a lot of, if whatever I, I’ll take whatever Henry Kissinger’s got, ,  he had, you know,  I would be tempted.  No, I’m just joking, but these people were all on the same page, right? Yeah, and then like  2021 you got the green sea summit, right?

Lagarde is saying how all the central banks are gonna coordinate a policy to fight climate change. No real, you know change there You know, everything is going according to script and then Jerome Powell says nine I have dual mandates for full employment and two percent inflation and Lagarde loses her fucking mind  Right.

Like if looks could kill Jerome Powell would have been dead on the spot. And 10 days later he raises the reverse repo payout five bips above the fed funds rate and starts defending the dollar for the first time in me or most of the people alive’s lifetime. He drains the euro zone because remember, like if you’re 30 or if you’re 40.

Interest rates have only gone one direction your entire effing life. Down.  Exactly. Only down. Never up. Our entire lives. Yeah, so this was a huge deal, right? And when he did it, he immediately drained the eurozone of four trillion dollars of capital in a month, right? He took two trillion of it and built the war chest on the liquidity side of the balance sheet And then he has five trillion dollars the treasuries on the other side of the collateral side of the balance sheet  And ever since then, Jerome Powell’s been at war and it’s turned me into a Powell fan for like the first time.

 No fed chairman in my lifetime has ever defended the dollar ever, never, not once.  So then I have to figure out what was going on. We’d have to go back to Volcker, right. To find a fed chairman willing to go to extreme lengths to, to defend the dollar. And that’s what night he, Volcker was elected.

Fed chair, I think 1979 through 88 maybe. And so, yeah, that’s 40 years, our entire lifetimes. Yeah. Right? And most importantly, this is why the chaos will continue to ensue. Right? So it’s your and I’s entire lifetime, right?  But it’s all of the boomers professional lifetimes. Oh, yeah, absolutely.

Right. So if we’re rewinding the clock 30, 40 years, these fucking people have just gotten out of like, you know, whatever  business school that they got out of and are interning at whatever investment bank that they’re interning at and then their entire professional careers, interest rates have only gone down.

Anybody that’s ever seen interest rates go up  is dead or retired right now. Yeah. And all of the people at the steering wheel have never seen this environment ever. Right.  So people need to keep that in mind when they’re reading, you know, economists, or they’re listening to investment bankers, or whatever, like these, we are in a place that these fucking people only read about in textbooks, maybe, right?

You’re in new, Uncharted waters. I don’t think anybody.  Factors that into their calculus and once you do like what Jerome Powell has done is kind of amazing He raised faster than Volcker at the same time as he’s doing QT  So he is raising the interest rate and contracting the money supply at the same time has been doing it For nearest makes no difference three years And nothing has exploded that matters.

Yeah. Just , some commercial banks,  those are, those are, I’ll get to that later if you want, those banks,  were foreign influence operations that had a sign on the front that said bank,  particularly Silicon Valley bank. But if you want, like, bring me back to that later, that’s a whole nother tangent, because I think that the blow up of.

Silicon Valley Bank was deliberate. I mean, look who started it. Peter Thiel. . He, called all the portcos and basically demanded that all of them withdraw their money. And of course , you know, this being in the VC space and I worked in, you know, fintech PE, like if.  You’re a VC and , you’re the GP and you can call the Port cos, you know, that’s commanding.

Most software companies hold millions of dollars, even for a tiny startup of 20 people hold. They have millions of dollars in treasury and so that’s hundreds of millions of dollars easily. And with network, that’s billions. You can scale that up when you scale that up, even if you’re not in the deal network.

When Peter deal says something that’s stark. It may has, it may have well come from God’s mouth himself, right? Because no one’s going to roll the dice that he’s wrong. Like, oh, I hate that guy, whatever. I’m not going to listen to him.  Like your risk management software in your brain will be going nuts.

Like, yeah, but what if he’s right? He’s got a pretty good track record of being right. He’s also the Pentagon’s pet boy. Just like Elon Musk is. Alright? So it’s very weird to me that the founder of Palantir, the thing that really modernized our intelligence service, the thing that kept on getting compromised, like we are constantly the victims of we’re, we’re the, we’re global dupes, put it that way.

And a couple foreign powers seem to really like it that way. The British, the Israelis and China seem to be really, really good at manipulating us because we’re extra dumb to whatever they’re selling. Silicon Valley Bank in particular. Right. This may sound kind of ridiculous. Maybe that’s listening, but I encourage you to type in your, in your search browser, Silicon Valley Bank, China.

Right. And you’ll find out. Wait, wait a second.  Silicon Valley Bank is the conduit. I mean, literally in their masthead. Right. Yeah. They’re the pipeline for new and emerging software and technology companies from China to get into the U S market.  Well, not really. Right. How many Chinese companies have entered the U S market?

Right. That were new and developing, you know, young companies, they weren’t  right. You get like Alibaba, something like big companies enter the U S market. What they do do, however you can go to the Israelis for like, they invented the process, right? You create a vaporware company,  vaporware for those I don’t know that are listening  a fake company bullshit software, like shit that’s not real. 

Yeah, like they might have a complete front end built, but there’s literally nothing on the back end. They just keep editing the HTML code to make it look like it’s happening. 100%. Yes, exactly. They literally just, they move the the, you know, the figurines, whatever, when they’re pitching VCs, and then that’s it.

It’s Fugazi. It’s not real. But a vaporware company that has built a bunch of vaporware,  right? Israel kind of, like I said, they kind of coined this, they were the people that kind of perfected this, right? You know, with Microsoft and the the CTO that everyone talks about, like the Epstein connections to what’s his face, Bill Gates. 

Nobody ever talks about the CTO who was way, way worse and had to unceremoniously step down and hide in disgrace. But in his tenure, Microsoft purchased a whole bunch of Israeli vaporware companies that were chock full of founded by Unit 8200 operatives, right? So that’s like saying China is going to be stupid enough to go buy a bunch of companies that do nothing, that are started by and staffed with NSA agents. 

And then they’re going to take these companies that they bought, these NSA front companies,  They’re going to buy them, you know, Alibaba, Tencent, they’re going to buy them and then they’re going to incorporate the leadership of these nothing companies into their existing management structure. That would be ridiculous, but it’s what’s happened to U.

S. major tech companies again and again and again and again,  and shortly after this happened, the  Jedi contract, the largest technology contract that the U. S. government has ever made ever, right, for all of the cloud hosting, For DOD, for CIA, for NSA, for State Department, literally, basically the Library of Alexandria of all U. S. fuckery. It’s gonna go into this, into this Jedi Cloud contract.  And after Epstein got arrested,  The US government did something it’s never done before. They cancelled a contract a year after it was already underway and integration had already started. They yanked the Jedi contract from Microsoft and gave it to Amazon. 

It was very strange. Yeah, well, I mean, all this is strange, right? Like,  I did dive down this rabbit hole a little bit back in March when, when Silicon Valley Bank failed because they were doing, , some sketchy stuff to get startups to, , post all their treasury holdings. I have personal experience with this. I mean, they were, I mean, they were essentially bribing people, right? Like they were saying, we’ll give you free software, we’ll give you, , help you raise capital. They were using their,  deal network to try to leverage  cash into their bank. 

So they personally told portfolio companies of mine that we’re raising their next round, right? Oh, you’re raising 25 million. Well, if you take that 25 million and you pinky promise to deposit it all in SVB,  we’ll make sure that you raise, , you’re gonna raise 50 million. Yeah. Well, that doesn’t make any fucking sense because the,  person that is most likely going to lie about the value of their company.

Is the founder of that company as they’re currently, , flogging their pitch deck down the fucking street to try and get people to cut them a check, right? That’s going to be the most valuable company in the world, according to that founder, because he very much needs you to give him a check for monies, right?

So if a founder is telling me a company is worth 25 million, right.  And Silicon Valley bank  says, Oh no, the founder is totally wrong. It’s not a 25 million company. It’s a 50 million company.

That sounds like something illegal is going on. And this isn’t, it wasn’t, this wasn’t one portfolio company. This was about six, right? You went everywhere. They were going after everybody. And not to mention what they were doing on the lending side, right? They were giving fucking Mark zucker face. 

Mark zuckerberg was getting One percent in a three or four percent interest rate environment because remember the time the silicon valley bank blew up He was getting one percent Loans against his facebook stock personal collateral loans Yes That’s insane because, 

, well, I know personally that getting loans against private equity stock is not cheap. Usually, most lenders that I looked at, because I have some, some private equity RSUs and options, and they’re, they want to charge me like six, seven percent. I mean, it’s, it’s easily a hundred basis points above fed funds, right?

So when you find out they’re giving 1. 5 percent on Founder’s wine collections, or 1. 5 percent on the most fastest depreciating asset ever, private planes, it makes you question a lot. It kind of starts to look like bribery. Yeah, it kind of looks like they’re building a network. They’re drawing in capital.

Or that they have dirt over. Yeah, if I if I hold all your debt and you’ve used that money I lent you to buy all the things that matter in your life. I can tear that away from you at any time Yeah, that’s leverage like for real leverage not like a financial term leverage like I’m gonna ruin your life if I want to leverage  most powerful people in the country?

 largest donors politically like I mean they were fucking donating more money than JP Morgan and Goldman Sachs put together Which is rare Yeah, especially for a small commercial. I mean, they’re, they’re relatively small, right? And they shouldn’t have been able to do anything at all outside of the purview of the San Francisco Fed.

Yeah. Janet Yellen’s office. Janet Yellen, for anybody that’s listening, is a card carrying fucking communist. That will be the end of my Fed posting because anything else I say about Janet Yellen will be Fed posted. Yeah, no, she, she did her Ph. D. thesis in labor theory of economics, which is colloquially known as Marxism. 

It’s a command economy  this is why everybody that thinks That the fed wants to do a CBDC is stupid, right?

Cause what happens when the central bank does that in an economy? It kills all, it kills all the, all the commercial banks. Yes. You’re now have control. You now have complete control over capital formation, right? And it literally does put, and for all the conspiracy theorists let me break it to you. Yes.

The federal reserve is privately owned. No, it’s not owned by who you think it is. Right. It’s owned by way better people than who you think it is.  It’s shares are entirely owned by the five member banks known as prime banks because a having a conversation with a mutual friend of ours about media right and media  as like a business, right?

And this person brought up  that you can have all of the content in the world You can have all the movies or whatever the TV shows the songs  Right. You could have hundreds of billions of dollars worth of it and without distribution channels.  You don’t have hundreds of billions of dollars. You have zero dollars, right?

Content is absolutely worthless without distribution and treasuries are kind of the same thing. The U. S. government tried to, you know, do its own distribution of T bills back in the Civil War and it didn’t work out. There was a lot of insider dealing, fuckery, you know, theft, and also inefficiencies to the point where they were losing money.

And the government is fine with corruption. It’s fine with fuckery. It is not fine with losing money. Right? Anytime you’re like, oh, the government lost money. No, they did not. They didn’t lose any fucking money. They gave money to somebody they don’t want to tell you about.  But they didn’t lose any. Yeah.

The two trillion missing from the pentagon on September 10th wasn’t they didn’t actually lose it? No, you should check the office of special plans. Barney Fife, Michael, dual citizen Michael Chertoff, and one Donnie Rumsfeld, who by the way, Owns all of the all of the companies that do that terrible body scanning and x ray bullshit that you have to deal with in the At the airport now.

, so the government doesn’t lose money They just take it from you and when you go and ask for it, they say they lost it So yeah, that’s kind of what happens with the Fed, right? The Fed doesn’t work without its member banks and the member banks have to be on the same page The only way you can bind two people in a financial transaction Is to put them on the same side of the transaction, right?

If they have divergent interest and divergent incentive mechanisms They will never be on the same page and will always seek to fuck each other over This is why our all cartels are metastable. So if we want to pivot back to the euro dollar system This is why the age of central bank coordination was going to end, right? 

Because at a certain point in time the cartel gets external pressures And there’s external pressures built to a point Where one member of the cartel realizes I don’t have to worry about getting us all out of this mess. I can just push the rest of you down onto the ground and run really fast and I get out of this mess and you all get fucked.

And it happens every single cartel,  sugar cartels commodity cartels in general, financial cartels and drug cartels. It’s a golden rule. No cartel is a permanent fixture of anything.  So central bank coordination on its face should have sounded really silly to everybody. Yeah, loyalty loyalty  is only a constant as long as it’s convenient. 

Bingo, exactly. Well, yeah, so let’s let’s talk about this, you know, the the origins of the system because you know the deep right I looked into this it was really weird for me to find out how Basically, no,  modern economists can agree on the exact date of the origin of the euro dollar  But look, I mean it starts in 19 in the 1950s in in England But like, it was planned out in the 40s. 

The euro dollar system is part of the Marshall plan, right? It was like the Brenton woods to Marshall plan hack and I don’t mean like hack I mean, what do all economies  have to deal with immediately after they are fighting a war whether they win or they lose? Inflation.    So FDR. And the FDR regime were more, than just like the FDR regime itself, but like the progressive era, right? The social, , experimentation regime that we live under today, all of the public works but all of the agencies, the three letter agency government came in under FDR and it’s only staying power was this stopped the great depression. 

Which it didn’t, it actually made it worse, but that was the narrative. So, 80 percent of the country was against getting involved in World War II.  Nobody talks about that. 80 percent of the country did not want to send one troop anywhere. And then Pearl Harbor happens, which is, you know, another interesting rabbit hole is, the first radar post ever experimented with in the United States was in Hawaii, at Pearl Harbor, on one of the mountains above the bay.

. So, so, okay. So world, you know, yeah, hyperinflation bad, right? So we got, we brought the economy out of the depression.

That’s the narrative. , and we dragged the country into a war that 80 percent of the population did not want any part of. Yeah.  I mean, it did, it did succeed in simulating aggregate demand  , and then also eventually pushing the U S onto the stage is the next world superpower. Right?

Because we came  kind of later on to, to mop up the mess and we didn’t suffer the casualties as a percent of population as much as France or Germany or the UK did. 

It sucks for them.  But we did the paying. Yeah. And we wrote the debt off to where we held it over the British people’s heads until the late 80s. We also Even though we had, at that point in time, at the time that  the allied powers and met at Yalta, right, the Soviet army was fucking exhausted. And  the US really hadn’t even finished bringing all of its troops to Europe yet, right?

Troops and ammo and gear II was over. Yeah. Right? There was absolutely no reason we needed to give them half the continent. And if FDR didn’t die right before He would have been impeached over it,  like the outrage that was happening in the Congress and the State Department and the military for what FDR and Harry Dexter White did at Yalta.

China is the one thing that doesn’t make sense. China is the one thing that’s subversion, but India let’s, let’s take a,  every Japanese famous company, right? Like Sony Mitsubishi’s,  none of these are real companies. They’re all us shareholders,  right? Like we own all of these so called foreign companies.

All of the capital in them is our capital, and all of the returns from that capital go to us, right? We export, we gave these companies the technology, we gave these companies the engineering workforce to build their manufacturing. We literally had to create these companies, these industries, because these countries didn’t have them.

And after Vietnam is when we really learned this lesson, right? It’s a lesson that we luckily  learned in Europe early on, if your country has no infrastructure,  no meaningful employment, no developments, modernization, and really,  anything above, being a rice farmer,  somewhere in Southeast Asia, or the guy like, in Europe, post World War Two, everything’s all bombed out.

Infrastructure is absolutely destroyed. Right. Hyperinflation is rampant. These people are literally selling prized possessions to feed themselves. If you’re a communist revolutionary, that is about as close to a best case scenario as you can have,  right? If you want to go recruit some fucking communists,  a bunch of broke, disheveled,  hopeless for the future people  are the people you need, right?

Would you say then that the U. S.  Was maybe using the Marshall Plan as a subtle way to combat, communism,  going back to the We had to build shit fast. Yeah. But how do you build shit without getting hyperinflation at home? Sending us right back to the depression that FDR supposedly pulled us back from.

Yeah. I don’t mean to, like, meander down the story, but really you gotta have a lot of context, right? If So we need to build Europe ASAP. Well, if We need to do it in a way that didn’t cause inflation at home. Yeah, and if you think about it, by loaning them money is kind of genius because it creates, now that they have a, they have a loan on their balance sheet, they have demand now for US dollars.

So we can create dollars from the service that they have. They didn’t get, we didn’t loan them money. We gave them the ability to, if we just gave them money, right? We would have basically QT at home, right? Which would drive up asset prices and cost of goods at home, right? QE, yeah, yeah. Yeah, yeah. You basically QT yourself,  right?

If you just ship them over dollars. That’s true. You can’t lend them dollars because in order to lend them dollars, you’d have to print those dollars or at least the liabilities, right? But if you give them the ability to borrow themselves in dollars, you solve both of those problems at the same time as you take the necessary steam out of the US economy.

Right, because if they have the ability to borrow, if they have the ability to create dollar denominated loan,  right? You don’t give Europe a loan, you give them a money printer.  Now, they’re buying your shit. And taking all that steam that would’ve been causing inflation at home out of the system.

Got it. So Brett, Bretton Woods essentially was a smart move on the sides of US policy makers to get the, the world on the dollar standard, but it lacked the ability. To actually transmit those dollars into the private sector, which is what I’m hearing. Like, that’s what the Eurodollar market was for. ,  we already have a mechanism for giving dollars to  these private, or to these foreign central banks, right, and foreign governments, but there wasn’t really a mechanism for private markets. And that’s what, that’s what the Midland Bank started to do.

Well, so this is, this is where the fuckery comes in, right? Because giving. The ability to loan dollars, to a single bank was nowhere in the Marshall Plan. I don’t know whether a bunch of parliamentarians in England got Epstein’d or whatever, but some very corrupt dealings happened, right, because we were first going to give it to England,  and then a couple years later we were going to give it to the banks in mainland Europe.

But that’s not what happened. It got hijacked, and libertarians,  if you can keep your attention span a little bit longer, I pinky promise to tell you why you really don’t get to have a gold standard,  right? So Midlands Bank or what would later become  HSBC Bank. All right, but   Midlands Bank was recently acquired right before the Marshall plan  Suspiciously timed acquisition, right  by a certain Private banking family  in the City of London that we’re all probably really familiar with 

 By the way, the City of London has a veto  In Parliament, I know it sounds crazy, but look this up, all right, the basically the decision maker, whether something goes, right, you can have all the votes in the world, right? And the City of London in the UK Parliament has a pocket veto,  right?

They have a seat, no joke, a guy sits there every day next to the Prime Minister, right? So the City of London has a pocket veto  over any legislation that comes out of Parliament, so nothing comes out of there unless they like it. And if they don’t like it, they veto it and send you back until they have to grease enough palms or threaten enough people to where you re submit it in the terms that are acceptable to them.

So I’m imagining some of that happened. Because instead of giving it to all of the major banks in England, only one bank got it. Right? And England is a clusterfuck nation at this point in time. It is bankrupt itself. So, yeah. And, and cost of capital was like 12% and it had dwindling, you know, or had next to no dollar reserve balances.

And they were noster Sterling was still dominant. Yeah. At that point, or at at least they thought it was. Yeah. wE don’t need any of that Silly American money . But their cost of capital was 12% and now one bank has the ability  to lend in dollars  at a cost of capital that was roughly three or 4%.

What does that give you, that bank? A massive competitive advantage. I mean, yes, everyone’s gonna want to borrow from them.  100 percent and they get to make the spread too, because they can lend themselves five, four percent dollars and buy ten percent notes. Yeah, I mean the difference this was their this was their first like actual business use cases They started playing in the forwards market They were you know saying exactly what you said borrowing in dollars and lending  certainly in capturing the spread and  this attracted a ton of I mean billions and billions of dollars in the space of just a few Years into that was supposed to be spread across the entire UK financial system.

Yeah But instead it wasn’t. By the end of 1960, actually, sorry, by the end of the 1950s, going into the beginning, like 1960, 1961,  Midland’s Bank had rolled up pretty much nearest makes no difference all the other banks in the UK,  right? Through various cutouts, trusts, holding companies, like you can disguise ownership lots of ways.

These people have a tremendous amount of experience doing it. And also the UK owns the largest networks of not just tax havens. Everyone thinks that they’re just tax havens. They’re not, right? They are black boxes. So not only do you, you only get to hide from taxes in them, it’s because no one can see who’s inside any of the entities or who owns what inside of them.

They’re not just like, hey, we don’t do taxes here, right? You have to basically stick a bunch of companies in there. And they say, we don’t tell you who’s inside of these here. And that’s how you evade taxes by simply not telling anyone that you’re earning any  and no one having the power to check. So these people own the largest network of corporate black boxes, right?

You will never be able to untangle who really owns what in England in a million fucking years. And the reason why that they’re British protectorates  and not part of the UK proper. Because there’s a bunch of little fucking islands in the UK proper, right? You got the the Jersey Islands, you got Ireland, you got Isle of Man, right?

 If I were to put on, I’m a banker hat, right? So what does my banker hat tell me? Right? Bankers are really, really risk averse.

They have to be. Fractional reserve banking is a fucking Ponzi scheme, right? So you got to be extra careful,  right?  So nobody likes risks and investing in equities is risky. Right? I have to put all my faith in management. Is the stock going to go up? Is the stock going to go down? Is Elon Musk going to smoke pot on Joe Rogan?

Or like, whatever.  Nobody wants to deal with that. That’s a whole lot of risk that you’re inserting into a system that not be there if you didn’t want it to be there.  Right? Bonds are extremely attractive. In fact, Right. If you go back, like in the, you know, before the twenties,  actually, even in the thirties, right?

Bonds were the gentleman’s investment. Investing in equities was like the equivalent of investing in like alt coins back then. Right? Like you were like a fucking risk freak or didn’t know what the fuck you were doing or easily duped or whatever. Right. You know, the white shoe bankers, they only fuck with bonds, right?

Bonds was the gentleman’s investment, right? Always has been because it’s, you know how much you’re going to get out of the deal from the moment you go in. All right. I know that I am going to make X percent, right? And you have to pay me, right? Because if the share price goes down, whatever, not your fucking problem, right?

It’s either you pay me or you’re never able to borrow money ever again and you’re de facto out of business. Yeah. And if you do go out of business, what do you get? You get all their shit. Yeah. You’re first in the liquidation stack. You get, you get paid back even before equity holders.

Yes. And all of those islands were property of the East India Trading Company. Until it went bankrupt. And who owned the bonds? These bankers that I’m talking about. These particular ones in the city of London.  Never owned shares of the East India Company. You’re never going to be able to see, Oh, these guys own the East India Company.

No they didn’t. Because it would be fucking dumb. If they did.  They own the bonds. And when it went bankrupt,  they got all the assets.

 You were starting to go down,  last I could hear, you’re starting to go down the shadow banking rabbit hole.

What are shadow banks and what, what function do they serve? So you probably heard the term before, right? Yeah. What they serve is do you know what Hawala is? I just remember what it was. Alah. That’s the Arab. Isn’t that the Arab rules or the Muslim rules around banking and finance, or am I wrong?

Well, it’s not just rules. It’s actually a money network. It’s a physical thing, right? Oh, yes. The Alah network  is ama It’s, it’s amazing.  The fact that this exists is magnificent because what Arabs have been doing for a thousand years, we didn’t get to replicate until blockchain became a thing. Right a peer to peer trustless money value transmittal service  Right that can operate anywhere in the world   with no major infrastructure to speak of  So how it works is like let’s say i’m going to america and I need a million dollars in america What i’m going to do since I don’t want to travel with a million dollars because like I could get robbed by robbers or whatever  Right i’m going to give my money  to Al guy at the mosque  in Riyadh.

Mm-Hmm.  . Right. And I give it all to him. And then I hop on a plane and I fly to America and I see another r  al guy at a mosque in Brooklyn. Right. And I say, I’m the guy  that just gave X amount of money  to the other guy in Riyadh.  And that guy says, all right, let me check, I’ll, I’ll,  talk to you tomorrow.

And when you come back tomorrow, that guy has a million dollars for you. And this work, I mean, hundreds of billions of dollars still flow through this, you know, person network to this day. It’s, it’s fucking wild,  right? But the shadow banking network, if you can imagine interbank lending and interbank transactions that are done in these. Basically these black box countries, I mean,  there’s a couple dozen of them. It’s not just all in the Caribbean, right?  Hong Kong was one of these places for a very long time, right? There’s some around Africa Cyprus is one,  right? There’s a, there’s a whole bunch of little tiny micro jurisdictions. 

That have zero banking scrutiny laws, right? As in nobody can look in what’s happening in either banks or in any of the corporate ownership structures,  right? So when they say there’s X amount of dollars sloshing around the shadow banking network,  right? If I don’t know who owns what, then I have really no way of determining what the liabilities are, right?

Yeah, like when we’re talking about lending and bonds, which is mostly what banks do with each other. They lend to each other all the time. The only people that actually know what’s going on in there is these people and they use literally like this is not done electronically. It’s literally a  in person, yeah, shadow banking hollow system that exists, right?

Like  physical ledgers. So there’s estimated  Roughly around 400 trillion dollars of  capital and assets,  right? So there’s 400 trillion dollars worth of value that’s locked up in this shadow banking network right now. Mm hmm. Because it’s also where everybody hides shit, right? Yeah. I mean, you know, drug dealers, cartels, they don’t go to like Bank of America. 

Or BNP Parados.  And there’s actually a lot of research that pretty definitively proved that if it wasn’t for the money laundering out of the shadow banking network into the traditional financial network about double to triple the amount of banks would have blew up in 2008. In particular, Deutsche Bank, the people that are always caught, Deutsche Bank and HSBC are the ones that are always caught doing this shit. 

They’re, they’re almost entirely propped up by this, right? They’re kind of the conduits into the mainstream financial system.  The dark money network, or the Eurodollar system, these Venn diagram very, very closely. And, and, well, the interesting thing is that, you know, Fed officials in the summer of 2007 and 2008, for that matter, were adamant that the financial system was sound.

That there was absolutely nothing going on on August. I think it was August 9th, 2007. Ben Bernanke said our financial, like he, he had a,  FOMC it was a presser,  he was assuring everyone and saying that everything was fine. And two days later, the first Eurodollar bank, which was actually ironically enough, a bank in the UK failed and LIBOR LIBOR’s like forward swaps, everything started to go.

like haywire because demand for, for dollars liquidations in the shadow banking network started to accelerate. And again, they were, , Fed and treasury officials were either willingly or just blindly  ignorant of what was happening, so this is the problem with the Euro dollar market.

This is the problem with Europe printing dollars. That on the surface say dollar on them. Yeah, right. So when you give Europe a money printer, all right By the way, and we jumped off at the 60s They’re the being the 60s by the end of the 70s. It was all the banks on the continent Right? The European continent.

Right? Yeah, yeah, yeah. So, so, so it had spread. This money printer. Of course. ,  And it continued to spread to where there’s nine euro dollars for every dollar. Mm hmm. That’s here domestically. Mm hmm. So when people say like, oh, the petrodollar’s going down, the world reserve currency’s going down, the dollar’s fucked, 

this is a nomenclature problem. This is why I had so much problem with it. This is why regular people have so much problem understanding this. Because An offshore dollar is called a dollar, and the thing in their pocket is called a dollar. But those two things aren’t the fucking same thing.  They are different.

And this is why I tell people like, yes, the dollar is gonna both blow up, and the dollar in your pocket is not going anywhere, and will probably strengthen significantly. Yeah. That doesn’t make any sense to regular people. . It’s the dollar milkshake, you know. Come come home to roost.

You know, yeah, like it started off with this Midland Bank And I wrote a piece on this called Eurodollar origins Which paid subscribers can check out, if you’re listening to the content and you’re enjoying reading this stuff And you’re not subscribing.

You’re the reason we don’t get to have nice things Exactly, exactly. Yeah, so, you know, it starts with Midland Bank, which, by the way, you know, we were touching on this earlier, but they were, they were breaking, they were actively breaking financial regulations.

They broke something called Regulation Q in the UK, which pinned the top amount of interest they could pay on 30 day time deposits and they were offering above that rate in dollars because they wanted to get dollar deposits to flow into their bank so they could profit off this forwards trade.

But I I’m looking at the, , I mean, the fed, the federal reserve bank of St. Louis has a, has a graph showing that the year doll market estimated year at all market, just from eight key European markets grew from about 80 billion to 250 from 1964 to 1968. So within the space and how many years?

Four years. Four years. About four years. Yeah. So it, it, it’s actually, and, and then you look at the growth curve and it’s exponential. And what’s fascinating is that, you know, again, like if you give a mouse a cookie, he’s gonna ask for a glass of milk. Exactly. Exactly. It just starts to blow up. I mean, I don’t know if you’ve watched Eurodollar Universities, Tormy, but Jeff Snyder.

I have. Yeah, Jeff Snyder’s dug into this and it was something like, you know, it was 250 billion in 1968. It was like 500 billion by 73. You know, I think 80, 81 or 82 was the last time they accurately or at least semi accurately recorded it and it was already nearing half a trillion or over half a trillion by then.

And then the,  only rough estimate that was even close probably to the real number was in 2007 most recent one was north of 50 trillion  and that was not even, and, and even the authors admitted that it was a low ball estimate. 

So, as of right now, because again, this makes no sense, right? How can there be, well, let’s just say 50 trillion then. Right. What did, what happened to the US monetary supply? I don’t know if you’re in front of a computer, but what was like the US m monetary supply official numbers, like fed numbers from 2007 to now?

I can look that up. We, I know we tripled in the last four years, right? Yeah. So we can imagine that conservatively the euro dollar market has at least done the same amount. 2007 is 7 trillion, and to now it’s 20 20,000,000,000,021. So it’s tripled. More than tripled. That means there’s a hundred and fifty trillion dollars conservatively, and it doesn’t make my When I said four hundred trillion earlier it sounded retarded, but it doesn’t sound so retarded now.

No, absolutely not. And by the way, the error bars, like I said, the error bars from that prediction were huge. Like, their upper range in 2007 was, like, a hundred eighty, ninety trillion.  So  And again, they don’t know!  But what’s so crazy is, I mean, to me, someone who’s, likes data is the fact that they don’t fucking know,

well there you have it. They don’t know how big this is. The shadow things kind of overlap significantly in the Venn diagram, don’t they? Yeah. Cause that’s the only way they don’t know. Yeah, yeah, and  dollars are rehypothecated and Repledged and they’re just able to  lever  up on top of it I don’t want to run away with this so these people are gonna subscribe to their sub stack or else I’m going to find them You know knock on their doors really late at night and then run away really fast Take it you should take the lead on that real quick 

Sure, just talking. Yeah, you were just, you were just in the beginning of a good flow about breaking down kind of the operation, what this looks like operationally. Yeah, so, well, this is what I thought was really fascinating, right? Because when I was first learning about the offshore dollar system, I was listening to what Fed officials were saying.

I was listening, I was reading, you know, books like Central Banking 101 by Joseph Wang, who’s a former senior Fed trader. And, you know, he’s a smart guy and he knows a lot, but, you know, he was saying things like, you know, the U. S. Treasury and the, and the Fed have, Oversight over every single dollar transaction in the world.

They can sanction people. They can, , stop transactions from happening. They can oversee every single loan in the system. And that is true to a certain extent when we’re talking about like large prime banks. Transferring dollar holdings from U. S. commercial banks to other U. S. commercial banks, but in the name of offshore entities, right?

So he was right in this specific case, and I thought that he was right generally, but the more I learned about the Eurodollar system, the more I realized that essentially it’s just a giant Synthetic dollar,  operation all these banks can create euro dollars And they only have to back it with a fraction of real dollars or actually not at all.

There’s no regulation  Saying how many real dollars quote unquote real dollars us dollars they have to hold in the  either fedmaster account or commercial bank account to back up their euro dollars like, again, nobody knows the extent of this.

Nobody knows  the collateral that underlies it.  There’s no regulation or, , investigatory apparatus set up a government apparatus to, to regulate these institutions. It’s completely in the dark. And so taxpayers on the hook for backstopping it, all of the eyes of the people that are taking it.

So this is what I try and tell people.  That was actually a really good explanation of why they are hypothecated, why they’re not real. They’re not,  but yet you’re on the hook for it.  So we threw Europe  a rope as it was drowning and a certain group of people took that rope, fashioned it into a noose and have tried to hang us with it.

Right? So these fake dollars in 1973 were still redeemable in gold. Right. They’re counterfeit, right? Just because it comes over in a wire transfer doesn’t mean they can’t be counterfeit dollars.  Yeah, and at the time they were redeemable in gold.  So what did these people do? They took their money printer that they weren’t supposed to have, That was supposed to be spread equally across all of the financial institutions of Europe for the purpose of rebuilding the European economy post World War II.

This is the problem with democratic government, because you keep on having to vote new motherfuckers in that may not get the memo about all the things that were done by the people that just got voted out.  Right? So, everybody forgot about that money, Brinder, that they gave those Europeans. So when the Europeans started printing dollars and redeeming them for gold in the US and using this gift that we gave them to save them from ending up  in a fucking gulag with some commissars Tokarev to the back of their fucking head.

tHey decided to take that and drain the US gold reserves with it. Nice people. Yeah. And I mean, they even sent and couldn’t, we couldn’t figure out where it was coming from. Yeah. We couldn’t stop it.  France sent a destroyer to the New York Bay in 71.

Right. In in like July to demand like they, like they were gonna do anything. Right. Isn’t that, yeah. Just think about how ostentatious that is.  Yeah. Right. So the problem with having an unlimited money printer is it makes bribing politicians really fucking easy. Yes. If you owned 400 trillion dollars, right?

 Oh, and also nobody knows that it’s you that’s own that owns it. That makes you the most powerful person in the world, 

right? You are sitting on, you can deploy more capital at any given point in time  than any nation in the entire world.  You could buy the U. S. Army and the Chinese Army to have a demolition derby in your backyard with, if you so chose to. That’s the type of power these fucking people have. And once you understand that, you will understand that  there is no lengths that they will not go to, to hold on to this.

The problem with having a money printer, printing fake money,  is that eventually you forget. It’s kind of like having a checkbook. With you know, like a fake checkbook or a checkbook with what you think is unlimited balance on it. Yes  you’re gonna start cashing bad checks. Yeah, and if you have a bad check cashing empire It could all, it could go away really, really fast.

The second everyone realizes the checks are bad. And this is exactly what happened in 2008. And this is what I was saying earlier. Like, the fed officials and the treasury officials all thought that this was isolated to subprime.

And subprime was just merely like a symptom of the underlying issue. The issue was really the Eurodollar market. And the dollar funding markets abroad that started blowing up and  through the daisy chain of collateral and reapplication and derivative exposure, U. S. banks started to blow up, but it wasn’t, it didn’t start in subprime and the primary issue was not subprime was much larger, more complex, which is why, like, ironically,  everything the Fed did and everything they thought they were doing to save the system didn’t really work until they , went full bore with QE and TARP.

Like, they had to go nuclear, right? Well, no, they didn’t go nuclear for us. The housing thing was just a fucking cover story. Because if you tell the American people that you’re gonna go bail out a bunch of foreign banks. Yeah. Because, turns out these banks are fake banks, but our banks, our real banks, lent them a lot of money thinking that they were real banks.

Mm hmm. There’s no way you’re solving that. No, no way. I mean, I don’t need to direct everybody to the New York times. How many times did they use the word racism chart that happens right around 2011 2012. But the people were already really, really pissed off right on both sides of the aisle. Right? So, of all political spectrums, they were camping out in wall street.

They were breaking into fucking high rises and office buildings. They were pissed. This is how I got the Tea Party Movement.  Right? The country was unified at how upset they were. 96 of the country voted against the bailouts. They did it anyways.  And that’s that’s when they thought it was saving the housing market of the places they fucking lived in. 

You try and tell those people you’re gonna go bail out a bunch of foreign banks they will hang you. You’re gonna end up swinging from a light post, man.  Housing market was the cover. It was already bad enough with just the saving U. S. banks and U. S. bankers. Exactly. No, we’re gonna go, we’re gonna go give 900 billion dollars to Nomura Bank.

Like, fuck you are. Yeah. It would have been, it would have been bedlam. So yeah,  we’ve actually been cleaning up the mess of this fake money system because unfortunately bribes work Just as good here as they work over there.  Yeah, exactly You know one of my friends  on fin twit.

Multi finance sent me this chart of the fed’s liquidity programs And you see a jump in one trillion dollars in central bank liquidity swaps in  the second half of 2008. Well, let’s talk about where this goes. Yeah. And it’ll explain a lot about what’s happening now that doesn’t make a lot of sense to a lot of people.

And this is where I broke from Jeff Snyder. Because Jeff Snyder is still under the assumption that everyone’s on the same team. And there’s no way you could look at what’s happening and assume that. I talked about earlier about what happened when Jerome Powell said, No, I don’t give a fuck about climate change. 

And Lagarde fuckin freaked out. And Jerome Powell built the war chest and drained Europe of four trillion dollars. We should talk about SOFR and how SOFR came to be. Because it’s the only time in the world that John McCain and Kamala Harris high five. On the Senate floor when they filibustered Jerome Powell’s confirmation.

I have a lot of reasons why I think, and we can get into COVID too.  Cause COVID. Miraculously happened right after the repo crisis  and whose banks were in the repo line? It wasn’t U. S. banks. No, it’s all the offshore dollar funders and, people who need liquidity. Yeah. Bingo. And what is COVID?

COVID is like a war. COVID is like holding a gun to Jerome Powell’s head. And forcing him to turn on the money printers, but he didn’t want to turn on the money printers because he was in the process of raising rates and tightening. Hence the repo crisis. 

It was on my radar by the beginning of November, last week of October. And the repo crisis was in the first week of September. Yeah. So I don’t really care about like the, yes, some pharmaceutical companies were involved or whatever. Like, cool. Pfizer made a hundred billion dollars. You know, what’s cooler than a hundred billion dollars, 400 trillion.

That’s what’s cooler than a hundred billion dollars. It’s also the same exact time because the system is terminal, right? The Eurodollar market is coming apart. Right. It’s not, it’s not a matter of if, it’s a matter of when.  Right. So everybody doesn’t need to be reminded about all the technocratic bullshit, like the vaccine passports and all that stuff, which are really just wallet systems, right?

Everybody remembers the CBDC digital ID rollout that, you know, they were actually successful with in some countries, luckily not, not our country. It’s all like they had that shit preloaded and ready to go.

Which is probably, I’m not a creative person, I wish I was. But I’m sure as fuck not creative enough to come up with With what Blackrock already had in the can that they rolled out to Jerome Powell at Jackson Hall right before COVID. It’s called I urge everybody that thinks I sound crazy.

Larry Fink, this will be a trend if I continue talking about the stupidity of Larry Fink because it’s well documented and goes back a long way, but first off he is dumb enough to leave.  This up on BlackRock’s domain. You can navigate your way to it. It’s called the Going Direct Reset Plan. 

You can either view it in web form and they’ve been also nice enough to put a PDF there together for you if you were so inclined to download it, which I have. It’s very interesting  because the thing that he pitched the Fed at Jackson Hole looks exactly like the central bank digital currency plan that the  IMF has been masturbating itself to furiously.

the four years prior to COVID.  They’re actually virtually identical, except for maybe the letterhead and some of the shitty, you know, stock images and graphics, but they’re the same thing. And Larry Fink had it preloaded and ready to go, one month after COVID. Funny that, 

that fucking cocksucker. And, and look at, look at exactly what it says. We believe it is time to go direct a joint fiscal and monetary response that more directly relieves the cash flow pressures facing some areas of the economy. Some areas,  not any of the areas that Americans fucking live in, you piece of shit. 

Yeah. Yeah, that’s a lovely document. I am really thankful that they are brave enough to do that. Larry Fink, by the way, has become persona non grata on Wall Street. He is a much more humble man, if you haven’t noticed. I don’t know if anybody’s caught his recent apology, literally an apology, for ESG. 

Yeah, oh yeah, I saw that. Very strange behavior from Larry Fink recently, huh? It’s almost like he’s in trouble. Because he is. That’s what happens when you have 14 billion dollars worth of assets held up like a little elephant or a big elephant on little stilts by, I don’t know, last I checked.  Less than 40 billion of shareholder equity that puts you in a precarious place.

People can wipe you out pretty fast. Yeah, especially when the plan that you rolled out at Jackson Hole  would put David Solomon and Jamie Dimon out of business. Both of those two men are very interesting. I, I, I think, especially in modern day America. With the faceless, interchangeable, you know, corporate manager,  , just, you know, these people that all sound the same regardless of sex or race or whatever.

Like they’re, they’re just the same people. Yeah, right. We kind of look back at. You know, the, the tycoons, like the people that were very principled, whether you agree with their principle or not, these are men of will,  and we don’t have those much anymore. We have a couple of them, and they tend to stay low key, right?

Jamie Dimon and David Solomon are both those people. Jamie Dimon has taken every dollar he’s ever made on Wall Street and bought J. P. Morgan stock with it. Jamie Dimon is the CEO and the chairman of JPMorgan Chase, not because somebody wanted him to be the chairman, or he was appointed to the board by the real holders of the shares, right?

To represent them. He’s the chairman because he owns that many fucking shares. And he’s the CEO because he owns that many fucking shares. You could say that he’s worked his entire life for JPMorgan Chase, the oldest financial institution in the country. Right. Yeah. The company that was founded by the guy who bailed out in 1891 or 1892 something, 1890 something and correct me in in the comments, John Pierpont Morgan bailed out the entire United States government out of his pocket, right?

Literally put everything he owned  Everything he owned, from the bank, to all of his homes, to his yacht, the Corsair, literally everything he owned, he bet on America. And the U. S. government wouldn’t exist. We would probably be some colony of some fucking Eurocommy poor country, right now. If it wasn’t for him  and he had 90 percent of the money, right?

It took every single asset he owned getting leveraged and he was short 10%. So he took all the bankers, right? Jacob Schiff of Schiff and Lowe James Belmond, took them all out on a cruise on the Corsair  in  the Long Island sound. And as soon as they were far enough away from shore,  he, the boat stops and he comes out.

And he says, all right, gentlemen, you guys are going to help me come up with this other 10 percent or I’m not letting you off this boat. You’re going to stay here till you die. And if you try and don’t go along with this with me, I have basically all of my net worth in liquid cash right now. And I will send a signal to the captain in there and he will  Put it out over the new fancy wireless radio to my men on the shore to short your stock  Bankrupt you by the end of the day and I like if the country’s going broke.

So are all of you fuckers yeah, we we used to have guys like that and We still do they just aren’t because of the nature of our media    David Solomon. And JPMorgan are really good at being banks, or sorry, being good at bankers. And their banks are really good at being banks, and they make lots of money. And nobody wants that party to end over there. So,  what do they have?

What weapon do they have? Or could they possibly bring to bear against 400 trillion dollars worth of angry capital that is cornered and in risk of dying? Mm hmm.  Right? The Fed is the only thing that they have. And, and the potential switch from LIBOR to SOFR, right? Yes, yes, yes, yes. That’s actually really interesting.

Because if you were to say, What campaigns are  JPMorgan and Goldman Sachs donating the most to? If I were to tell you like Matt Gaetz and Marjorie Taylor Greene, you’d probably laugh at me. But if you go on OpenSecrets, Unlike the hedge fund industry, Unlike the rest of the financial sector in its entirety, from pension funds to hedge funds, To insurance companies, whatever, they’re all donating glue. 

All the commercial banks are donating red.  Yeah. Which is very strange. But, yeah, the last thing that, not the last thing, right, but the close to last thing  that President Trump ever did was roll out SOFR. And SOFR is Secured Overnight Funding Rate. It’s basically the U. S. ‘s LIBOR.  And unlike LIBOR, which is unsecured, I think, you know, fucking Shadow Bank, the Euro fake dollar, you know, interest rate for the fake money that it indexes.

SOFR is a secured overnight funding rate. Mm hmm. And it was kind of The banking sector’s brainchild put into policy by Donald Trump  and Jerome Powell didn’t get a chance to roll it out. He needed to be reconfirmed first.  And I don’t remember, I don’t know if everybody remembers Laurel Brainerd’s insider trading scam that you tried to take out Powell with or the.

Kamala Harris John McCain tag team on the Senate floor to avoid confirming him.  Or Nancy Pelosi adjourning Congress four months early  that year to avoid reappointing him till the next congressional year.  I remember like Jerome Powell’s reconfirmation should have taken a month and it took a year and a half.

Because everybody knew what he was going to do.  He was going to roll out SOFR and he was going to raise rates because  the one thing that fake money doesn’t like  is having to pay up because it can’t. Because it’s fake, right? And everybody thinks Jerome Powell is raising interest rates for inflation.

I’ve got a bridge to sell you in Brooklyn, right? He’s not fighting inflation. That’s a canard. You can’t fix commodity costs, push inflation. You don’t fight supply side problems with demand side tools.  And he told everyone as much. When, funny Cato Institute, which is ostensibly a libertarian think tank. So the idea of a Fed chairman would be like, they’re, it’s kind of like a whore in church, or whatever they call it.

  The complete inverse, yeah. Yeah, so he said it at the Cato Institute, he goes,  Raising interest rates isn’t going to fix inflation, we have supply side inflation. Which begs the question, why the fuck are you doing it then?

Why are you doing it, right? He’s doing it  because the Euro dollar system is Orders of magnitude. Larger than the dollars that the Fed has control over domestically. So how do you fight an enemy that has orders of magnitude larger money than you? Kind of like how russia is fighting ukraine. You just  grind them slowly and slowly and slowly  All right, you can’t go directly at them because they will crush you right  400 trillion dollars is a lot bigger than What is 20 trillion dollars?

Yeah, 8 trillion on the balance sheet right now. Yeah, 8, 8. Yeah, a little less than 8.  So  he’s got one lever to, to swing around and this is why everyone but me and maybe five other people on all of Twitter  have been right when the entire financial world, right, from fucking economists to Wall Street Journal The Economic Times.

 BUt everyone and their fucking mother was saying Powell’s gonna pivot. Powell’s gonna pivot.

They said it at They said it at half a percent, they said it at one percent, they said it at one and a half percent, one and a quarter percent, one and three quarter percent, right? I believe their track record for being wrong is fifteen times in a row. 

He’s not going to pivot. He’s going to hold, yes. He may not raise from here, but he will hold steadily until he drains the offshore dollar market of liquidity entirely. All right.  Remember what was it in 2022? All right. It was either end of 2022 when the fucking market took a huge nose dive. Yeah.

, Oh, pivot pounds and pivot pounds going to pivot. And then we saw fucking commercial banks, right. Or begin to blow up. Yeah. Yeah. Literally we just watched three banks go up in a weekend. Yeah. And what did Powell do?  He raised rates again. Literally, the banks are still smoldering craters and ups, and then ups QT at the same time. 

He is raising interest rates and draining liquidity out of the dollar market. Well,  and so what’s so interesting about this, though, he’s raising rates all through 2022 and in September and October, we began to see  the early stages of currency crises in the yen, in the yuan.

And in the euro and in the pound, all of them were racing down against the dollar as the dollar started to rip upwards. I mean, because of this, when we touched on this earlier, right, the dollar milkshake, the, the demand for actual real dollars started to kick in and all this capital sort of flowing into the U S because of the attractive interest rates, the carry traders started to put on the pressure.

So he’s kind of, you know.  How do you say he’s kind of like recruiting other actors in the financial system who may be neutral like carry traders to help him fight his war, but at the  same time he’s doing that, Yellen started drawing down the TGA from 1. 8 trillion down to like, I think it hit 49 billion.

I’m looking at the Fred website 49 billion in May of 23. So she was adding, she was fighting against essentially what he was doing. Exactly. There’s another, there’s another instance of that. When he really started cranking up QT, she runs over to Japan, right, to pressure the Japanese to do yield curve control, which is effectively QE.

Selling QE. Yeah. Why is Janet Yellen, the lady who was in charge of all those shady fucking banks that blew up, that were intelligence fronts Yeah.  Right. If you want to know who the biggest beneficiaries are, just look at all the places that Silicon Valley Bank had JV’s with UK, Israel, China, when SVB blew up, the f g foreign minister of China hopped on a plane to go f g beg the Senate Banking Committee to bail out, to force a bailout of SVB.

The Secretary of State of a foreign country saw a bank in the U. S. go down, which he should have been fucking tap dancing about, and instead hops on a plane to go to fucking D. C. to badger politicians to try and force them to bail it out? Yeah, makes no sense. What was B. B. Netanyahu doing?  Oh, at the exact same time, his entire fucking country was on fire, right?

60 percent of the military was AWOL because they were too busy protesting for him to resign in the fucking streets. Israel was literally on fire. And what did he do? 

Huh, this is bad.  I should totally go hop on a fucking plane. to Washington and pressure U. S. legislatures to bail out SVB. Why? Is the Prime Minister of Israel  and the Secretary of State in China so concerned about a fucking mid tier bullshit bank in the United States? Why is this bank getting bailed out of such high concern?

And why is there articles in Haaretz, The Forward, and the Jerusalem Post about how terrible this is? For israeli startup scene. Why?  Why are they writing? Stories about how terrible this is Why is the Telegraph and the Guardian writing articles about how terrible it is and how Important it is that we bail out this fucking bank that nobody gave a shit about until it blew up No one even knew about it. What was this,  this group of people, what was their bank? Like, what was the vehicle for at least 200 years? It was HSBC. HSBC was British East India Trade and Company Bank. 

It was separate, but that’s where all the fucking loans came from. Why do you think the British got to have Hong Kong for a hundred years? They didn’t just give, like, hey, here’s our favorite island. You can have this for a hundred years. Fucking white people, strangers we’ve never fucking seen before. I mean, it’s laughable on his face.

Yeah. Why did the British care so fucking much about right after COVID got put away? Why do they care so much about getting us into world war three? Cause the money printer comes on and the liquidity comes back. And they need, they need the liquidity like heroin. 100%, or the whole thing goes away. Yeah.

Right? Who blew up the Kirsch bridge? Oh, that was the SAS. Thanks, Grayzone. You’re amazing.  

Maintaining control over the world island is the only thing that the Brits fucking care about. And that’s, I mean, that’s ancient. That’s like 1904 was when he wrote his book, right? And it is taught in every single foreign policy school in the United States, and it is literally the masthead of the Council on Foreign Relations.

And they were a military power 400 years ago, and they seem to have forgotten it’s not 400 years ago. And are really getting in fights.  They’re reliving their glory days. They refuse to forget them. Yeah. So let me tell you a little bit about Nord Stream, and this is how I came across Alex Cranor’s work, because you get to see the network in play. 

I encourage everybody to look up a company called Genie Energy, G E N I E Energy. The board of directors of Genie Energy  will paint a very vibrant picture. That is much clearer than the one I’m laying out for you now, but  Nord Stream blew up on the same day  that another pipeline, one going from Norway to Poland, opened up,  and that’s big fucking news.

There’s only like three pipelines into Europe. You would have thought you would have heard about that one, right? Yeah. Well, three including this one, and the other one blew up, so now there’s only two. Oh, it actually damaged the second one, the other, the other pipelines. So technically there’s really only one and a half.

You would think that you would know about the opening of the one,  right? Between Norway and Poland, the same country that has that collective super secret security agreement between Britain and Ukraine. The country, if we all remember, was the second most belligerent. Well, the Nord Stream Pipeline bomb, like that news broke on Twitter, as does most things, many such cases, by a tweet from the Polish Defense Minister.

It had a picture of bubbling North Sea, and the caption, Thank you, America. That’s  fuckin odd. And didn’t that get wiped pretty fast? Because I think I remember even seeing that. Yeah, it got to like, it was like hundreds of thousands of views within minutes, and then Yeah, he took it down. Wiped. You know who his wife is?

He’s married to Anne Applebaum. Really? From Neocon, yeah. I mean, she’s They just had to register as a UK foreign agent.  She’s an author of several books on you know, Russia. Yeah.  Having never fucking been to Russia. Probably not biased at all. 

 But, the funny thing is, is that this Polish defense minister was a poor boy. That somehow, with no academic achievements of note, nor sports achievements of note, got a full ride scholarship to Oxford.

And while at Oxford, he was selected to join the Ballington Club. The Ballington Club is a special club, because it is the only other college secret society more secret than the Skull Bones. And by secret, I mean like exclusive. They only pick, what is it, five members? A year? Each year, yeah. Yeah. So maximum there’s only 20 people in it at any given time.

 By the way, you have to be nominated by one existing member and confirmed by all the others before you can join. It’s got to be a unanimous thing.  Do you know who the  person was that that whatchamacallit picked him? Right? Do you guys remember? No, who was it?

One Boris Johnson. One young Boris Johnson. You know the people that confirmed him? One David Cameron and one  Nathan Natty Rothschild, the owner of Genie Energy.  Funny that. Hmm, that is really interesting. Really interesting. The one company that benefits tremendously. Off of the blowing up of the Nord Stream Pipeline.

And this guy, with no diplomatic or really any experience or achievements of note, somehow managed to be selected  to the Secretary of Defense of Poland. No one’s fucking heard of this guy. Not a military guy, never fucking served in the army. He’s a Secretary of Defense? Okay, sure. Yeah, that’s ridiculous.

It’s retarded, right? Genie Energy also, funny enough,  owned that proposed pipeline. That was supposed to go from Israel to  a, well, not really a multiple hubs in Southern Europe and was going to be the , I don’t want to say replacement because they started at the same time.  As Nord Stream, and it happened to run through a country ran by a guy by the name of Bashar al Assad, who didn’t like that idea very much and said no. 

And then all of a sudden, Hillary Clinton got the bright idea that Assad must go. Assad must go now.  And that didn’t work. Even though they tried to fake some chemical gas attacks, right? Some fake, oh Assad’s gassing his own people. Because that’s what I do when I’m winning a war. Against ISIS, right?

just gas myself the one thing that President Obama said, I’m not allowed to do literally the one thing he says, I better not use chemical weapons. Oh, you look at that. He used chemical weapons the very next week. Gosh. Yes. Guess we got to go in there now. And wouldn’t you know it? The,  Oh, what is it? The, Oh, I always forget the acronyms.

I think it’s like, Oh, OECD, whatever the UN’s chemical weapons investigator people.  They found a bunch of MI6 agents all over that fucking thing. Thank you, Grayzone, by the way. Great reporting. Too bad they’re commies, but I, I like their reporting. 

Yeah, so MI6 people did a fake gas attack to get the U. S. to get into a war, to beat up a person that didn’t want a genie energy pipeline. Going through it.  Déjà vu.  I have heard this story before. Do you think, do you think that the war in Israel is just another attempt for them to, you know, increase military spending and therefore increase global liquidity?

Yeah, the UK and Israel, or sorry, not faction, when I say Israel, when I say the UK, I don’t mean all of the UK. We’re talking about, I mean, everybody in Israel will tell you that they have a huge problem with a bunch of what’s called the mega group, right?  Here in the US, right? The Lex Wexner’s, the Brompton family, like a bunch of shady people, like all the, these are all the people that funded Epstein, right?

So a bunch of rich Americans who are really just kind of the other half of, you know, that money laundering network, right? Remember I said, like you know, the cartel isn’t going to go set up a bank in Bank of America, right? These are all people that are attached to organized crime since like the 20s, ?

They’re basically using their power and bribery over. US politicians to then exert and dictate policy to Israel, israel has as much of a fucking democracy problem as we do. They have as much of an oligarchy problem as we do. Same thing with Britain, right? We just have the illusion of democracy in all of these countries.

So when I say, you know, Israel did this or the UK did this, that’s not what I mean at all, right? I’m just giving context for this because,  right, so like when everyone said we went to Iraq for the oil, Right, we didn’t. Net oil imports in the U. S. didn’t increase at all, but Israel suddenly did.  It exploded.

All of a sudden, Israel has a natural gas and oil industry. Well, that’s because 90 percent of the oil from Iraqi Kurdistan is now, you know, just found its way there. Well, the interesting thing about the Iraq situation, right, is I think it was March 2000,  Saddam had came out and said that he wanted to settle oil contracts in gold instead of U.

S. dollars, or instead of basically petrodollars, right? Yes. And so, he, he made that statement, and, and the U. S. was like, no, you’re not Instead of eurodollars. Yeah. And the U. S. is handling eurodollars. Yeah. Well, yeah, it says it’s eurodollars, yeah, but, you know, the West collect collectively said, no, you’re not doing that, and he said, fuck you, I’m a dictator, I do what I want, I’m gonna do this, and started preparing to transition.

to accept gold as, you know, physical bullion as payment, right? Vladimir Putin did the same thing.  Yeah. And then, you know, coincidentally, two years later, less than two years later, we have boots on the ground in Iraq. And Vladimir Putin did the exact same thing  by kicking out all of the oligarchs. What they didn’t say is that some of those oligarchs that Vladimir Putin kicked out,  some of them died. Well deserved deaths, but what they didn’t figure what they didn’t plan on is the controversy It was going to come out in these people’s wills So in russia, I can’t legally will all my property and all of my shares of stock to an unnamed person Like literally in the contract an unnamed person.

That’s illegal. Apparently as it should be it’s fucking weird  right, so after a tremendous amount of You know,  public interest and, you know, it’s kind of like the Epstein flight logs when something like that drops with a person like that. I figure whatever controversial figure the public’s never gonna let it go.

So the public didn’t let it go and turns out some of the people. Well, one particular family of people were those unnamed people. And in fact. A lot of those oligarchs, I mean, I’m just going to have to assume it’s all of them because it’s already been caught to be a bunch of them. We’re really just front people.

They didn’t own their companies. it’s the same reason why the whatchamacallit, the the Turkish Empire had like the Janissaries.  Right?  The eunuchs. Yeah, they would castrate them and Yeah, castrate them and put them in positions of Like, administrative positions.

Because they could never take power, because they could never have kids. Right? You only start worrying about If I’m the front man for something And all the assets are in my name You can always tell who the fall guy is, like whichever Epstein, because he’s the guy that has All his name on shit.  If your name’s on All the shit, then you’re the fall guy.

Those are the rules, I don’t make them.  Right. Same thing here.  I would not trust all of my, you know, trillions of dollars of oil interests, to this guy’s name, because that guy could have any moment in time fuck you over. He’d just be like, I don’t know who the fuck you are. You’re an unnamed person.

I’m going to redo my will tomorrow.  Right? That conversation is going to go through that guy’s head unless he has kids.

It’s a little medieval, but it’s, it’s the truth. And that’s also how Vladimir Putin became the enemy now. We got to go break up Russia because really it’s a mad dash for collateral. This is what Alex Cranor figured out, they don’t care about the oil revenues coming out of the ground. They care about the fucking collateral in the ground. 

 Because an oil company  isn’t worth what it pumps out.  It’s all the oil that it hasn’t pumped out yet.  The future earnings. Bingo. Right? And what do you do with future earnings? You leverage the fuck out of them. On rates to one.  And that’s how you have your collateral to prop up your system. 

Right? So you need the U. S. to create liquidity.  To stop your short term problems. And you need collateral ASAP. To stop your long term problems Or without collateral this fucking  this cycle is just going to keep on happening, ? There’s gonna you know, it’s going to be crisis after crisis after crisis until they recollateralize the system Yeah, but they can’t yeah, well like putin needs to go It was like all of a sudden became the most important thing, 

like literally kovat stopped overnight Yeah, yeah, you should get them No, that’s true Every leader in the world in the western world all the g7 countries immediately knew that it was the enemy and we must destroy Our fucking economies and burn through all of our political capital to get this guy Like that’s retarded politicians love staying in power  Political capital is expensive.

You don’t burn it for nothing. 

And that’s, this is, I mean, so going back to your collateral argument, this is the same reason,  right? We’re switching from LIBOR to SOFR because SOFR is secured and LIBOR isn’t. And this is, this is why. This is why the system melted down 2008 because we’re all operating on an unsecured system And when the when there’s a credit event and you’re on an unsecured standard your Your desire to re lend again into the system goes to zero which is why all the credit markets froze up timothy geithner’s new york fed president said In late September 2008 that if it were not for, so, you know Lehman fails and it’s like, you know, Lehman fails like September 18th or something and it’s like 10 days, not even 10 days later and he basically comes out and says we’re, you know, without fed support, without a treasury program, a new treasury program to help Swallow this massive amount of toxic assets and to reinvigorate the credit markets.

The ATMs are not going to work in three days.  And this, this is goes again, this goes unseen and no one ever asked why won’t ATMs work in three days. And it’s just because the credit markets, the interbank lending markets were all getting frozen up, Ford and GM literally could not. Roll their paper and McDonald’s operators like McDonald’s franchisees could not  get a short term paper to pay the payroll.

Cause what they were doing before was just issuing short term debt in the credit markets, getting, you know, making payroll. And then the next month they’d pay it all off and do it again. And suddenly all these banks stop lending because guess what? They’re all in an unsecured standard. It’s all indexed to an unsecured rate.

And when you’re not, when you’re in that kind of environment and credit risk now suddenly goes to infinity, nobody lends no matter what, right? Everyone rushes to treasuries and that’s about it. So treasury rates plummet and everything else fucking evaporates, just freezes. That’s, that’s, that you just described perfectly what a meltdown looks like.

And that will happen again, ladies and gentlemen, it just won’t happen in the United States. So how, how does this play out then in the euro dollar market? All right. So there’s, there’s two ways, there’s two places it’s going to play out. So the euro dollar, it’s going to play out in the euro dollar market.

And it’s also going to play out in the euro zone and all the other emerging economies. The fact that bond traders haven’t woken up. To the fact that the Eurozone is effectively an emerging market is fucking beyond silly to me, right? Everybody can look this up. It’s my favorite. Little Powell snippet,

but after Brexit,  after the Brexit vote in Chicago there’s something called the Chicago Global Initiative. It used to be called the Chicago Council on Foreign Affairs or Affairs, something like that, right? And a soon to be Fed Chair, Jerome Powell, was speaking, and he was asked, Who guarantees the  ECB balance sheet?

And without hesitating for a second, like literally snapped back the, back the answer.  They have a printing press. He didn’t say it was the fed that backstopped the balance sheet. He said they have a printing press and everybody is. Screaming, but this is another reason about like all the people that are the China or dollar doomers or whatever you want to call those idiots that are always wrong. 

THe Peter Schiff’s of the world. Yes, the Peter Schiff’s of the world. Oh, China is selling all of their treasuries. They’ve just liquidated 400 billion in treasuries.  Okay, smart guy. But if you take a look at the Eurozone, they bought over 800, almost 800 billion in treasuries in the same period of time.

But we don’t see them buying it, but they buy it because it ends up there. How are they buying it without seeing it? Oh, that’s right, they’re using the shadow banking system. All those little, if you look at how many treasuries these little fucking Caribbean nations have been buying, you will be amazed and staggered, right?

Fucking 85 percent of the ECB’s balance sheet is impaired, right? 85 percent of it is inter agency debt and sovereign debt,  all bought at negative nominal yields that are roughly, back in the napkin calculation, eh, underwater about 30%, which is why that thumb bitch is doing constant yield curve control, right?

Because the ECB does not have the ability to recapitalize itself, unlike the Fed. Yeah. Right? What the ECB needs to recapitalize itself is all the European member banks agreeing to recapitalize it. And after you literally, you know, vampirized Greece, Italy, and Spain to prop up France and Germany last time Greeks weren’t too happy about it, they still really haven’t recovered yet, neither is Spain or Italy, and none of them forgot it.

So, those three are unhappy, and you’re currently sanctioning two other European member states, i. e. Poland and Hungary. So the European Union is sanctioning other European Union countries. And you need them to agree to give Germany, the fucking epicenter of this, pain? Give them more money? Yeah.

Absolutely not, not happening. So what happens to the pension funds? There’s nothing to buy as suicide bonds. Negative interest rate bonds as a suicide bond. Why the fuck am I gonna get, like, guarantee to lose money?  So, nobody bought them. Surprise. Yeah, so the central bank did. Well, not just that. The European Union mandated that all European Union pension funds, not just state pension funds, pension funds, have 60 to 70 percent.

It started off with 60 and now it’s like 70 percent of their portfolio in government bonds.  So  it’s not just the ECB that’s 30 percent underwater.  Alright, what happens if pension funds need to be 8 percent a year minimum just to break even with the amount of distributions they have to do, right, because it’s pension funds.

It’s like a social security thing. Right.  So what happens with, if you’re not getting 8%, but you’re getting negative interest rates for 11 years,  how much of that pension fund is actually left? So all those French riot police that are beating up the French citizens, breaking their French faces,  they’re doing that for a paycheck and a pension fund.

So what happens when you tell them that they no longer have a paycheck and, oh, by the way, your life savings in that pension fund is gone? Whose face do you think they’re going to be breaking next? Yeah, they’re going to be very mad. Very mad and they have all the guns. Same thing with the military. Like, this is the position that the, that the European, the, cause everybody,  everybody thinks it’s just the poor European Union.

Oh, the satellite state. Oh, those poor vassal states of the U. S. Empire. Ma, ma, ma. Well, let’s break out the world map and what that looks like.  If the U. S. takes a step back, because if you haven’t noticed the U. S. I mean, this is a very complicated thing and really there’s no way to explain to anybody quickly, right?

So I’m glad any of the listeners that are still listening to this, you’ve, you’ve gone a long way to understanding the world around you and what is going to drive asset prices in the future because it’s sure it’s not going to be fucking you know what should we call it charts?  This is a geopolitical thing now, right? Welcome to the world of geopolitical markets. It’s going to be interesting. So if I am Europe and Russia, China, and Iran. Are now the epicenter of the energy world on the Eurasian continent, and China’s Belt and Road,  right, has basically turned on a whole bunch of manufacturing hubs that didn’t exist, which are about to, i.

e. like Turkey, Iran, Iran’s got a fucking huge manufacturing sector, right? And because they can’t get credit because of all the fucking sanctions, these companies are the leanest fucking companies you’ve ever seen in your life.  They all, they all have to operate without any debt. The amount of capital that’s going to flow into those, like wait, you’re telling me you ran for the last 35 years without fucking any debt at all?

And you’re still alive? That’s an investable company to me. Alright, that’s, that’s fantastic news. Alright, so you’re going to have this lovely chain of fucking manufacturing prowess, a whole bunch of production’s going to come out of it, and the energy network’s already there. But that makes europe literally the ass end of the world If the eurasian continent is the future of all of the eurasian countries in africa Europe may as well not even exist.

All right, so these countries that have been literally dick riding u. s military and financial power Around the world as they lecture  people on the importance of sodomy and carbon is bad and you all need to do these things that we’re doing and we’re telling you to do because we’re these lofty European technocrats and, you know, we just much more refined than , third world country when the U.

S. Power in the U. S. Financial power goes away and the Eurasian landmass realigns to where its energy, its financial capital and its Industrial capital  really are Europe may as well be on another fucking planet irrelevant is not even the word that is, you know, potent enough to actually describe where they’re going to be  so the stakes are not just high for the shadow banking network, the people that command that, but also the diplomatic military and intelligence powers of NATO.

They found the first allied commander of NATO, right? A lovely British person. Whose name is escaping me at the time, but the quote is very famous, right? When asked what the purpose of NATO was, he said, it’s simple. Purpose of NATO is to keep the Russians out, the Germans down, and the Americans in for the tab.

Tab’s not going to be there anymore, right? So you’ll have a whole military command structure that’s about to get put out of business. They don’t want to get put out of business,  this is why the Nina Jenkiewicz, the fucking censorship, Nazi scary Poppins, whatever it was, her name, the disinformation governance board that got fired.

She just had to register as a foreign agent a couple of months ago. Guess what country? The UK. So she has a foreign agent now. I guess she always was.  So you’re going to have a sovereign bond crisis, a sovereign debt crisis. Like we’ve never seen a sovereign debt crisis before. Yeah. It’s going to make the Greek where it starts.

It’s going to make the Greek crisis look like, children’s play. And it’s going to be worse than the great depression, man. Oh yeah. It makes me very, very sad. What’s going to happen.  Like I don’t like knowing all this shit and you don’t like knowing all this shit because the amount of people that are going to get hurt.

By this is it’s horrendous. Yeah, innocent people who don’t know any better are just gonna get destroyed And what happens when the sovereign debt crisis obviously affects commodity prices, right? How are these people going to fucking eat millions of people are probably gonna starve to death. Yeah Gonna be terrible But it doesn’t matter where it starts.

It could be some fuckin Southeast Asian country, neither of us can remember.  Once the Sovereign Debt Crisis train gets started, it’s not gonna stop. Cause this is the final, this is the, you know, I said this too, like, you know, they, they were able to kick the can in 2008 because they were kicking the can up the stairs in the sense that they were escalating the problem to the next level of , institution that could handle it.

Yep. Right? They were like, okay, fuck, like, all these, you know, all these banks, all these euro dollar dealers are all getting screwed. So we can, we can kick this up to sovereign level and load up on sovereign debt and load up the central bank balance sheets with their toxic assets and bail out the system.

But now, this time, it’s the actual sovereigns who are fucked. Yep. And there’s no one bigger than, there’s no one big, no other institution bigger than them to save them, right? Nope. So. So  they’re totally stupid. So all libertarians are gonna tell you, well, you can’t taper a Ponzi scheme and well, this is why libertarians are dumb and they’re never right about anything.

They think they’re right about anything. But since if you’re screaming about knowing it ahead of time and you didn’t, you have no political power to do anything. You’re wrong by default. ’cause you’re decided to be powerless. So you can taper a Ponzi scheme, you can the fed’s Ponzi scheme. Sure.  Right.

But. Fractional Reserve Banking is a tool.  It’s a weapon. And if you decide to disarm yourself, some other country is going to use that weapon and use it against you shortly.  Alright, being able to spin up manufacturing and industrial capabilities through elastic money supply is a fucking weapon. It’s a tool.

It’s a national defense thing.  But Fed is a Ponzi scheme, and you can taper it, but you can only taper it one way. And the only way to do that is by kicking over all the other Ponzi schemes, which is what the Fed’s doing. Which is the Eurodollar market. I mean, in the Eurodollar markets, like we said, is the big is the bigger Ponzi scheme much bigger, by orders of magnitude.

Literally, you can call every sovereign debt market, besides the US, that Ponzi scheme. Yeah. So those those markets don’t have external demand for their own currency, which the US does  Which is our differentiating fact everyone needs to borrow and print In and and exchange and into currency. They cannot print and only we can truly print they can print fake dollars But like we said, they can’t print the underlying when the flight for collateral comes around  nobody’s those dollars become as fake as you know, they were the day they were printed when  flight to safety happens, but which begs the question if the u.

s. Is going to kick over all the world’s Ponzi scheme how does it stop the capital flight right because all of the dollars in the world is Are going to rush home. Yeah a massive massive pullback literally every rich person in the world Is going to try and squirrel their money away here. In fact, it’s actually the only reason why our market hasn’t crashed yet I don’t know if like if you  zoom the chart out a little bit.

You can see every month the market tries to crash And then suddenly it gets picked back up and brought back up again. Right. It’s not intervention. That is foreign capital flight buying anything regardless. We have permanent knife catchers running into the country at all given times because it is a hell of a lot.

A falling knife is a hell of a lot safer.  All right. And the only place they can fucking go since bonds are going to blow up. Our equities. Yeah. All right. So how do we stop all of these fake dollars from trying to sneak into the club? as real dollars I got a very interesting letter, I think I told you about this bull a while back from J.

P. Morgan.  I’m lucky enough to be a J. P. Morgan private banking and private credit client. Which again makes me very, very sad because I get to know all these things and you know that a lot of these horrible things that are going to affect a lot of people in the world and a lot of people in your own country , that you care about a great deal.

Like a nation is literally an extended family. I care about my family. I care about my community. I care about my town like I care about my city. I care about my city like a state. And my state is a nation. So, knowing that all of this stuff is going to hurt a lot of people.

A lot of people close to me, people I interact with every day and I’m going to be fine is a very sobering and sad thing to think about. I don’t like it  and I haven’t quite figured out how to process it, but I did get an interesting letter  from JP Morgan and it said,  I think this was right before Jane, this was like December or November of 2023 it said, we.

We will no longer   be allowing you to purchase any live board denominated instruments. And then I got another letter that said,  you need to sell any live board denominated instruments you have because JP Morgan can no longer guarantee liquidity for them come the first of the year.

So. The only other time  that something like that has happened is what kick started the repo crisis. Remember Christine Lagarde saying, coordinate central bank policy, fight climate change. Powell said no, and then raised the reverse repo payout rate five bips above the Fed’s fund rate. Yeah, which drew liquidity into reverse repo, building him a war chest.

Yep. You know. He did. But what also happened On that same 10 day period, because 10 days later after this, you know, central banker fight Powell did the thing with the reverse repo that I said, but at the exact same time, Jamie Diamond came out and said, we will no longer be allowing European corporate paper as collateral, no European corporate bonds as collateral by the end of the trading day, every other bank on Wall Street, right?

Followed suit. And the very next day, Jamie Diamond comes out and says, we will no longer be accepting any European sovereign debt as collateral. And by the end of the trading day, everyone had followed suit. So in 20, what was this? This was right before COVID literally, right? No, it was summer of 21, June of 21, this happened.

But, but that’s right before the, the hiking cycle that, that Powell started. Yes. Right. That’s right. That’s for that’s in the midst of QE right before, cause he starts hiking in 2020, early 2022 or yeah, early 2022 in the fastest, like we mentioned, the fastest hiking cycle in history.

And you know, something interesting about the European bond market. Very first, very first shot, I guess, was June, 2021, but yeah, go ahead. What about the European market?  So I have a friend who a mutual who is a bond trader for a credit fund and he specialized in European bonds.

And he was telling me, he’s like, I was talking about the, the ECB and the balance sheet, and he’s like, well, actually, if you want to know something, a lot of the off the run issuances. From the ECB, especially the long dated ones are completely illiquid and the, and the ECB makes the market. And I’m like, and he’s like, he’s like, yeah.

And I’m like, what, what do you mean? He’s like, well, I’ll tell you this. He’s like for the Italian bonds, for example, the Italian and the Greek bonds, he’s like on the 20 and 30 years. The only two actors trading in the market are the ECB and a trading firm that it basically hires to trade against itself.

And so they just trade between each other to make the illusion of an actual market. But he’s like, no one else in the entire fucking credit market is trading these instruments. Because everyone knows that Italian bonds are shit and they aren’t worth,  88 cents to par. But somehow they’re trading at this level.

 And it’s the same Q sips that are just being swapped back and forth between these two institutions, just to make the illusion of, of, of liquidity, right? Making your markets expensive? Yeah, exactly. What do they have to pay for that? They only have the bund. Yeah, so they are literally burning the furniture to keep warm.

That’s where they’re at. The only thing on their balance sheet that has any value  is the German  goods. Yeah, and the rest of the So they’re literally burning the expensive shit.  Fucking create the illusion that the cheap shit is still, you know, not a total Potemkin village. Exactly, and the Italian and the Greek bonds especially have basically had no bid since, you know, 2012.

And so they had only to do this marginally. But it’s gotten worse for, according to him, it used to be, there’s only like five or eight players in the market, but he’s like, since 2020, it’s only literally the ECB and one trading firm that they hire and they pay. They cover all their, all their, you know, losses from the trade.

They basically just comp them. They’re just like, Hey, trade against us. Take a slight loss and just make it look like  we’re actually having a market here when in reality this bond hasn’t traded in two years. That’s very funny because a similar thing has been happening in the oil markets because Christine Lagarde  she’s, she’s quite literally stuck between a rock and a hard place.

That’s why I really think. Even though it could kick off in an emerging market. It may be Europe that goes first  So because I think we’re gonna be at a hundred and fifty dollar barrel oil by the end of the summer

So the ECB ,  they can only do one of them at a time, right? unlike the Fed they only have the ability to either a Defend the currency or B, defend the bond market. And this is why the U. S. administration has been so schizophrenic because, since the beginning of the Biden regime.

No other time in my lifetime has has the president of the United States come out and done something militarily like, Oh, we’re going to go put troops over there. And the very next day, the Pentagon comes out and says everything that guy just said was bullshit. And then the press secretary comes out the day after that and goes, sorry, everybody.

Everything the president said was bullshit. It’s happened like five fucking times. And it’s never happened in my entire lifetime. Yeah. It’s almost like the Pentagon. And the White House are not on the same page, right? And judging by, like, the Build Back Better and all the trillions of spending, right?

Because the spending almost seems nonsensical, right? Yeah. Like, it’s like they’re just, it’s almost like they are spending money just to spend money. Which would make sense if you’re trying to create a bunch of liquidity. Right. Something like build back better or whatever other dumb fucking geisha they’re saying they’re going to do.

Right. Makes no sense because every single financial person that I know, every economist,  everyone’s screaming to stop the spending. Yeah. Everyone is screaming to stop the spending and the spending is not going to stop because it means liquidity.  Right. And I don’t remember if you. If you remember that really just terrible, like, just the gayest thing you’ve ever seen in your whole fucking life.

That World Economic Forum fucking thing that went around. The little video was like the six or seven slides. Like, this is where the you will own nothing. Oh, be happy, yeah. It’s like 20, yeah, it’s like in 20 years. You’ll be renting everything and be happy. You’ll you don’t need a car. You won’t have a motorcycle You won’t have a  title or property like yeah Yeah, this whole great reset bullshit that you’ve heard.

All right, just like the CBDC  that goes with it, right is a very clever Actually, not really that clever because once you see it, you can’t unsee it. That just becomes incredibly stupid, right? It’s just a marketing job. It’s a fucking snow job for a sovereign debt default, right? You’re not gonna own anything,  because we’re not gonna own anything.

You get to get a debt jubilee, because we’re going to get a debt jubilee too, and we need one. So we don’t give a shit whether you need one or not, because we’re getting one that’s what that actually means, because think about the, you’re, the European Union is an aging pensioner state, right?

It is, it’s been using our money printer. We’ve been basically prop, the reason why Europeans have such nice lives, you know, they get all this stuff. It is because they have a U. S. money printer in their basement and the richest country in the world has been basically bled dry to keep their fucking oversubsidized population afloat.

 We’ve been providing their military defense, basically. I mean, none of them The last slide of that was That little reputation. What? What? The US military will no longer be the world’s military superpower. The US military is going to come under the control of an international consortium. 

Well, fuck you. If I am the person that is in charge of the most deadly military machine to ever exist in the history of humanity since it crawled out of caves and climbed down from trees.  Right? If I can kill any person anywhere in the world at any moment in time, I want to, that makes me the most powerful person in the fucking world.

Yeah. That’s what it makes me.  And I’ve never, I mean, the idea of  a group of people that have control over the world’s largest death machine. You know, and you want to know what? We don’t like all this power we have. Well, let’s fuck off then. No. That’s asinine. Never, ever, ever, ever.

. But, you know, somebody was pretty well convinced that that was gonna happen for them. Well, they want that, right? Because they can’t subsidize the healthcare and the social programs that they want in the military at the same time. They won’t, they won’t be able to provide for their own defense.

That’s what they need. I mean, that’s why they need us in general. Like, I think, what was it, like, not even a single I think US and maybe one other country were the only two countries in the world that were reaching the 2 percent of GDP. Yeah, Czechoslovakia. Yeah.  Trump brought this up in 2018.

He was like, none of you guys are meeting your quotas of 2 percent of GDP on military. And You have a fucking parade around the world, like you mean something. Yeah, exactly. So if they don’t have the U. S. military, and they don’t have any military of their own  Again, they find themselves at the, yes, at the ass end of the world.

How are they going to rebuild? Right? They, this was a collective suicide pact,  right? It is a cartel. It is metastable. This only works if everybody kills themselves together and rolls out the digital currency together. Because if one person gets off the boat, they become where capital will fly to,

and the Europeans don’t have a choice to get off the boat because it’s their fucking boat, right? And from high, like, just think about, think about the whole green energy, no carbon thing. Well, that’s great for you if you’re gonna convince the rest of the world to shoot itself in the fucking cock  for no other reason because you say carbon’s bad.

Well, pretty convenient that the only country fucking telling everybody that carbon’s bad is the only country that doesn’t have any fucking hydrocarbons itself.  Yeah. Right? And they, but they still buy it from Russia and from the U. S. Yes, exactly. It’s the irony. They don’t have a problem, they don’t have a problem with, with oil and natural gas if it’s produced somewhere else.

But if it’s produced in their own shores, it’s an abomination. They don’t have any. They don’t have, there is no hydrocarbons anywhere in the European continent. Right, so they need to convince everybody that oil and natural gas is bad, because they know they’re about to be broke and they don’t have any, and they’re not gonna have any money to fucking buy any.

Right, so there’s no industrialization happening for you if you have no hydrocarbons and no money to buy any. So you better convince everybody to kill themselves, kill their fucking banking sector, kill their energy sector to be just as crippled as you are. Like it’s a fucking psyop. It’s really what it is.

Yeah. Right. So what happens to, what happens to oil, right? We see the, we see one half of this government, our government, right? Do things that’s wildly against the U. S. interest and nobody can figure out why. Remember that lever Christine Lagarde has,  she can either swing it one way to fight  off and defend the currency, or she can swing another way to prop up her Potemkin village bond market. 

She can’t do both. And a lever only goes one way. It doesn’t go both ways. Yeah. Right. So what is the biggest driver of inflation? Yeah. Commodity energy. Yep. And it literally is the same thing. Right? So this is probably sounding kooky, but if 65 percent of CPI rise over the last year and a half has been gasoline prices, you can chart out gas futures against the four month CPI chart.

And all the way back from 2019 to now, they are identical. They’re in lockstep. Take a four month CPI and put it against gas futures. It’s a one to one correlation with a four month lag. So when the U. S. is draining its SPR, it’s not draining its SPR, strategic petroleum reserve. It’s not draining it to literally fucking circling the drain levels for Joe Biden and gas pumps. Really, if we’ve made it, if we made it this far into 2023 and you still think Joe Biden does or doesn’t think do things based on whether or not you’re gonna get angry at them or not, like I don’t know what to fucking tell you.

Like if you haven’t figured out, they don’t care about your opinion. Then, well, fuck. But whose opinion do they care about? Why are they doing it?  Well, if you started a fucking  war against Russia the entire European Union collapsing in itself, like the fucking third tower that didn’t get hit by the two planes, then you don’t really have a war against Russia, do you?

Right? So, the U. S. is doing all of its dumb shit with energy  to keep the European Union alive because the people that are doing it And the U. S. side aren’t really fans of the U. S. as much as they are fans of some fucking Eurocommy global bullshit,  right? They want 60 a barrel of oil because, A, they want to hurt Russia, and they want to punish the Saudis for settling transactions outside of the Eurodollar, and they know they need the Saudis.

The Saudis need at least 80 a barrel to balance their budget, right? They want 60 a barrel of oil because  it hurts Russia, it brings the Saudis in line so the Saudis do what they say. And it keeps the inflation down in Europe, so Lagarde can take 100 percent of her effort and focus on propping up her fake Potemkin Doge bond market.

The second oil starts running, that bitch has to choose, right? Do I want hyperinflation, or do I want sovereign debt crisis?  Because you only get to have one, you don’t get to have zero. And what do you think is more likely?  The likelihood of, I don’t know, some random country we’ve never heard of having a sovereign debt crisis randomly, or oil going above 80 a barrel.

We say this, and Russia knows this, they’re not fucking stupid. Iran knows this, they’re not fucking stupid. China knows this, they’re not fucking stupid, right? The reason that the Houthis are fucking blowing shit up in the Red Sea  is because of this reason,  right? If all those container ships have to add 11 to 12 more days to their route, that’s what is it?

It’s something like 500, 000 barrels a day, right? They’re burning by going in times that by 11 days, not to mention the insecurity in the region, particularly in the Red Sea and the loss of Suez Canal is enough to drive oil prices by its damn self. Yeah, but now we’re going to create a two to three million barrel a day draw out of nowhere at the same time as the Saudis are stepping down production because they’re big mad at you for trying to drive oil down to 60 a barrel.

But if you look at the interventions, whether it’s in fucking gold, whether it’s the biggest fucking bomb that I’m surprised hasn’t gone off yet.  The lbma the fucking phantom fake metals market that everybody Knows the not so secret secret  is that for every 300 people that think they have a little paper gold certificate when they all show up to get their little gold alums for that certificate, only one of those 300 people are walking away with fucking gold.

This is why JPMorgan left, pulled out of the LBMA. This is also why to partner up with UBS to create a new,  Metals exchange in Zurich  and Zurich has always been the precious metal epicenter, right between the Eurasian landmass and Europe, right? Yeah  JP Morgan Decides to get out of the gold game with the LBMA transfer a 100 percent of their overseas precious metal market to Zurich And then shortly after, a couple of J. P. Morgan executives take a nosedive out of their high rise condos. Very interesting. 

 Why are we trying to smear Jamie diamond at the same time? He’s pulling out of the LBMA and JPMorgan chase represents 90 percent of the G seven precious metals market.

Yeah. And he does the LBMA, the most  thing that holds up. The fucking British Guild market, which blew up last year until the Bank of England had to do qe,  yeah, yeah. Right. Yeah. Shortly it blew up right around the time that JP Morgan pulled out.  Yeah, that is interesting. Geopolitics is going to be the driver of asset prices and securities in the future, and I don’t think people are ready for it.

Yeah, and I’m looking, look, , to confirm what you’re saying, I’m looking at the natural gas futures quotes on CME.  And they’re quoting next month 2. 416, but they’re quoting December at 50 percent higher for the same, yeah,  Martin Armstrong has been saying, Martin Armstrong, everyone should check out. 

Martin Armstrong is the most accurate financial forecaster in the history of securities, period, full stop, the end. He called everybody. If you got time, you should watch a documentary. It’s only available on rumble because apparently you know, global financial markets, speculator documentaries or something that needs to get yanked off of Netflix and Amazon  and YouTube.

Funny that Martin Armstrong’s done more time in solitary. This guy was 10 times Larry Fink,  right? He was the most important man to the U S financial system for a very long time. He. I can’t even list this man’s financial accomplishments, right? He was in charge of nine trillion dollars of the treasuries back in the fucking late 90s, early 2000s when nine trillion dollars meant something.

And the CIA locked him up in solitary confinement for 11 years without ever charging him of a crime until a Supreme Court judge forced them to either charge him or let him go. And they let him go.  Why does a financial forecaster have his life ruined? But he’s been predicting for near as makes no difference.

About 12 years. Martin’s soft. Martin is  very, when he’s ahead of something, he’s like a decade ahead of something. I, you can try and figure out how it works. Martin will tell you if he doesn’t really know how it works. 

WOw. This is also the guy that 20 years ago called 2024 being the last US election, which sounded really fucking stupid till about a year ago. He called this 20 something years out. Martin Armstrong’s literally been right about everything. He predicted the Russian sovereign debt crisis in the 90s down to the day Eight years in advance, all right the argentinian sovereign debt crisis all three of them to the day years in advance He doesn’t know how the ship works.

It just works and apparently after he predicted the russian sovereign debt crisis The ca wanted his little machine and he spent his whole life building it He said no, but i’ll build you your own or i’ll give you unlimited access for your reports And the ca said no you’re going in a box Wow, very interesting story But he has revised slightly from March of 2024 for a Sovereign Debt Crisis  to January or February. 

So what you’re saying about the futures market of energy going up 50 percent the month after next  is interesting. Well, the month after, yeah, the month after elections in 2024. Yeah.  Interesting. Which means we’re probably going to, someone’s going to war. Yeah, again. And you know, it’s interesting. They, they erase the, you warn Ukraine headline from the wall street journal website, like they used to have that as one of the sections you could read and now as of, as of like two days ago, it’s gone.

I don’t think it’ll be us this time, but I think there will be more on the Eurasian continent. And that’s not me saying it. Martin thinks it’s not going to be us, but you want to know what I was calling the end of globalization. Five, six years ago, and we’re, that’s process is just getting started. If you de globalize and onshore all of your industry, a war would be great.

If you’re the one supplying and not the one fighting. Yeah. So I don’t know if it’s true or not, but what you just said about energy markets that sounds like somebody is fighting somebody. Yeah, it does.  And  it would sound really stupid unless the world wasn’t literally like a fucking power king, man, right now.

Yeah. So, Euro bros, you’re fucked, I’m sorry, I love you, come to America, right, you’re the most advanced manufacturing and industrial technology countries in the world, if your governments want to flood you full of replacement people, please come here, we need you, and you’ll be financially, much more financially secure.

No matter what, get out of cash, get in physical assets that are transportable or crypto. This is why Christine  Lagarde also says that we need to ban crypto because it represents, these are her words, an escape hatch. And we can’t have an escape hatch going forward, her words. The European Union is worried about capital flight.

China is worried about capital flight,?   Literally, Chinese regulators just yesterday, the day before yesterday, mandated that all of the publicly traded companies need to increase its dividends and or reduce stock buybacks.  There’s only one way companies can do that, right? They have to borrow money to either A, pass to investors directly through the form of dividends, or Use that borrowed money to buy their own stock backs,  right?

So you’re basically poisoning your companies With long term toxic debt that they can’t afford or else that they could afford it They would already had it right for the purpose of bribing investors in the very short term  to stay at the roulette wheel to keep keep the game afloat for the short term Or else the fucking thing  Let’s put it this way.

Every nation in the world is worried about capital flight This is why I caution people against gold because we’re all going back to a gold standard. It’s  happening Right central bank gold buying. I don’t need to tell your listeners and readers. They already know So gold becomes a national security issue.

So to think that you’re going to be able to just like move pallets of gold around,  especially out of the country or into the country, you’re out of your mind. It’s not going to happen, right? Maybe the government will be nice enough to let you trade it around inside the country. Maybe. But if it’s a national security issue, you’re not getting any of it out. 

So if you’re trying to squirrel away your assets to come to America, come someplace safe.  Don’t do gold and for all the people that think like the US doesn’t have enough gold I will give you a little tidbit of information that I found very valuable when I figured it out  the US has never Repriced its gold holdings Since FDR last fixed it at 38 an ounce.

39, I can’t remember.  Coming up with the gold price, whatever he wanted to that day. The last day he did it is where it sits. Yeah. The gold, the gold has never been repriced. So when you look at the gold holdings of the United States, in dollars 

just imagine that is  38 an ounce of gold, right? So I don’t know here. I pull up my calculator on my computer. What is 38 or sorry, what is what’s gold price at today? So like all around 2000 I would say 2000 for easy math divided by 38

So take the US gold holdings or what it represents on this balance sheet and times that number by 52 And that’s not including all the gold we took out of Asia. Everybody talks about like the Nazi gold, like, Oh, gold from the Nazis.  Yeah, we did.  But way more impressive is the gold we got from the Japanese.

There was way, way more gold, just like the fucking British found out in the 1700s. There was way more gold in Southeast Asia. Then there ever was in Europe. Mm hmm. Yeah. And all of the temples, temples were like banks there before we brought the evils of actual banks there. Basically the only people you could trust and not run off with your money were the monks.

So all those giant gold Buddha statues were at one time actually gold. Now they’re kind of like gold foiled over something else. The Emperor of Japan’s younger brother, Prince Ishida, I think, he was the person that was in charge, right? It was so important, and so secret, the Emperor put literally his second in command, and the only person that he could trust to not fuck him over, or steal it, right?

Because The imperial house is not going to fuck over the imperial house,  just like the fucking Fed being owned by the member banks ensure that the member banks don’t fuck over the Fed  he was in charge of Repatriating all the gold the Japanese conquered right and the expansion of the Japanese Empire back to Japan And for some reason, we decided to let the emperor not swing from fucking rope, which was the plan and actually the public statements of intention by Truman and MacArthur, but for some reason, he managed to buy himself.

Out of the hangman’s noose and nobody’s ever found that fucking gold. You know, this, this idea though, is, is really interesting because Luke Luke Groman has said the same thing. He said, one of the ways that we can avoid the situation where it is revaluing gold to. You know, 000 announced because we have the gold.

And if you do that, it recapitalizes the treasury because the treasury holds those gold certificates on his balance sheet and they’re all value dollars from recreating  at the same time. Yeah.  The U S we’ll, we could bounce back. Very quick. Yeah, and he lays that out as the potential solution, but you know that requires policymakers repricing gold to a  much higher level Thoroughly not unless the market not unless the market forces them the second one of these countries any one of these big countries Doesn’t have to be a g7 country second one of these countries Goes on gold.

Everyone has to. Right? It’s like fucking mutually assured destruction.  Right? Because money will flow to where it is secure. Right? So all the fucking, unless you want your country to drain.  Right? You have to get on gold too. Yep. This is why all the central banks are fucking literally buying it like it’s going away.

Cause it is. Yeah. It’s not going to be easy to buy in the future. It’s going to be only traded for. And probably at much higher prices. This is why I think Malay got elected too.  All of these people that we talk about, right, China,  Israel, right, China depends on the U. S. maintaining its trade relationships there and keeping its manufacturing there.

If the U. S. pulls its manufacturing away China evaporates, right? Not long term, right? The Chinese people have been around and building civilizations for, may as well make some difference, 4, 000 years, right? I don’t imagine they’ll keep you down for forever. Probably not even very long, right? But the existing power structure will be fucked.

And really, when we talk about these governments, we don’t talk about the nations or the people, we talk about the power structure, because they’re the only ones that are really at risk here. Right. So the only people that are going to fight to keep themselves in the existing political structure and power is the existing political structure, right?

So they need the U S to keep making shit there. They also need us because they’re not really,  I think it’s a factor of communism. And I, I don’t think it’s a thing for the Chinese people at all, but since what should we call it? Since Maoism, there has been a real dearth of creativity there.

They have a hard time inventing stuff.  That’s why they copy everything. That’s why they copy or steal everything else. Yeah, all right so without the you and the only reason they’re able to do that is because of the tight trade relationships and the you know, the multinationalness of our multinationals This is why I think the the saber rattling of we’re gonna go to war with China in five years comes from because if I’m gonna go to war with you Maybe it’s in Sun Tzu.

I don’t know. I haven’t read Sun Tzu in a while, but I’m I guess there’s something in it that says, tell your enemies exactly when you plan to go to war against them this doesn’t sound like a smart idea, but it does sound like a really good way to hold a gun to your corporation’s heads, especially the ones that are lagging like Apple  and saying, you better fucking do this because this is going to happen one way or another with or without you.

And you either be fucked or you could listen to us and start reshoring fast.  And I think Apple will eventually get the message, but they’re really the only main holdout. Israel, same thing, right? Israel has had the same thing that the British have had. The ability to wield U. S. military power as a cudgel to smash all your neighbors with, instead of, you know, dealing with them diplomatically as equals.

I believe, actually, that U. S. military power Having access to military power, military support has handicapped Israel in a way that if it didn’t have, I mean, there’s some, there,  when they, when these, when the Israelis want to be, there’s some of the most diplomatically talented people in the world. These people, if they were forced to deal diplomatically, they would have, they would end up running the whole fund.

Right. But when you basically give the leadership a get out of jail free card, right? Basically your actions have no consequences card. Because the U. S. will come and let you wield its military might. So you don’t have to negotiate, you don’t have to be diplomatic, right, whatever.

It’s gonna be abused, right? Like, every tool power will abuse it, right? Because if they don’t abuse it, then there has to be accountability. And no government, regardless of where it is, wants any of that shit.  Same thing with the Brits, right?  So you have like the Davos people, the Neocon Israel people, and the Chinese people,

they’re the people that exert the most foreign control over the U. S. because they’re the people with the most to lose. Right?  The existing power structures very much need these, need the U. S. to stay there. And the reason why I said I think Malay is winning is because these people are looming the tide away, right?

It’s not going to work, right? They’re fighting, they’re trying to push a dead whale up the beach, right? You may get momentary spurts of progress, but eventually it’s a losing battle, and you’re trying to stem the tide. The U. S. is going to return to Monroe Doctrine, because it’s the only thing that they will be able to support in the short term, during this rebound process that you and I are so excited about. 

Certain is happening really you have to be retarded to not think it’s happening They can’t afford to be the world’s policeman global shipping is gonna get fucking expensive, right? It’s gonna be a dice roll We’re already you know now right instead of the u. s. Fuckin carrier battle group Smashing every youthy and every pirate and everything

they’re pulling back to the Mediterranean  That’s the signal like oh, you’ve got shipping problems You know global capital Well, I’m going to pull back to the Mediterranean and hang out in Italy with my friends. We have more U. S. bases in Italy than we have in Germany. Italy will be fine, not financially, but from the civil unrest, they’re not going to get it as bad as everywhere else because we keep nukes in Italy. 

We don’t keep any in Germany. We got more bases in Italy than anywhere else, so the Pentagon is not exactly going to let  Italy,  descend into Bedlam, but the U. S. is going to be an interesting place, and for, I, I left this message with the people that listen to the podcast on, on Meadow’s channel, that was much longer and arduous, so I,  I urge you to subscribe to this sub stack.

And yeah, but this one first, I’m saying it now, but it may seem really black going, but it’s not right. There’s no way out of this crisis because it’s in the math, right? The boomer generation was a worldwide global phenomenon, right? The population of every country, five X, whether they were in World War II or not, right?

Every single country from Japan, China, India to Europe. To the United States, to Central South America, right? It was  a freak occurrence, like a non linear type of systems dynamics. And what happens when you have, for all the people in America, all my fucking frogs out there that are very upset and very black billed because at the way things look now

the thought of them being able to buy a home and start a family is, Yeah.  But it won’t always be. Because what happens when you have to sell five houses to one person? Because again, our generation, us millennials, us zoomers, and bold as it applies to you we, the boomers basically held on to the assets and driven up the prices rather than see any decline and fucking retirement savings.

So what happens when you have literally 10 percent of boomers go away every year?  So. Eventually, you reach a tipping point where there is five times as many assets for sale as there are people to buy them, and a correction is forced to happen. You can’t have five homes to sell and only one person to buy them, unless you make each home five times less expensive.

 This problem or the solution, whatever works in reverse to and not a good way. What happens with pension funds for one case, social security, Medicare, Medicaid, right? What happens when there’s five times the amount of people taking as there is people paying into it breaks, right? Pyramid schemes are dicey enough as they are, but upside down pyramid schemes, that’s different.

That’s a time bomb. No one’s talking about this, which again, all the people in the financial workforce, all the people in positions of power or have microphones, are generally hyper specialized and you have to zoom way, way, way the fuck out to see this one,  right? Intergenerationally, which nobody ever fucking looks at, we’re too busy looking at Quarterly earnings chasing things, you know, four weeks at a time.  But there’s a big time bomb that’s gonna happen,  right? If you’re holding cash in dollars,  it sucks that you can’t buy anything now But if you just fucking hold on to your money, you’re gonna see fucking deals fire sale prices on things That your fucking grandkids are never going to see.

Alright, we’re talking like once in a hundred year type of corrections. And you get to be here for it. The type of fucking deals you’re going to be able to get if you just fucking keep your head together, stay optimistic, and stack as much fucking money as humanly possible and spend none of it. The rewards are going to be exponential.

You’re going to be able to buy more fucking house than your fucking balls are going to be able to fill up with kids. Right? The same thing goes for ladies. Like, the fucking workforce is a terrible place. But the ability of, you know, starting a family and being a mom seems impossible because the other half of the equation, the men have also been priced out.

That’s about to change. Just, just push away the black belt for a little bit longer. You’ve maybe got like three or four years left.  What’s going to happen on the other side is the U. S. is God really fucking, God really does love America. Like that doesn’t seem to be a, you know, a joke or a slogan  because when the U.

S. from the period of 1890 or sorry, from the period of 1790 to 1890, right, the hundred year period, the U. S. was entirely mercantilistic. 90 percent of trade happened domestically, right? So 90 percent of all goods sold were sold to people inside the continental United States. During that period of time,  the U.

S. amassed more wealth than any other  civilization. Not nation, civilization. Period.  In the history of humanity. ? Take ancient Egypt, throw it together with ancient fucking Greece, ancient Rome, China, India,  all of Europe throughout the entire Middle Ages to now, put them all together. The U. S.

produced more wealth at a per capita basis, not GDP, per capita, as in the individual wealth of the citizens that lived within the boundaries of this country increase faster than anybody’s wealth has ever increased in human history.  Not because our policy makers are great, not because they’re fucking smart, but  just because macro, macro forces are forcing that exact same thing to happen.

The U. S. doesn’t patrol the sea lanes, globalization doesn’t fucking work, and the easiest and cheapest market to access is the one at your fucking doorstep. Sorry for swearing so much on your podcast. Well, no, it’s, it’s good. No, and I, I am in complete agreement with you. You know, that,  period of, of growth was the most explosive we’d ever seen.

 I read this book, A Monetary History of the United States, and they were pointing out that, It’s something like 8 percent real GDP growth year after year after year. Wages kept rising in real terms and prices kept falling. And so, you know, that optimism I think is a good place to, to end this. 

Cause I think we’ve,  you know, we’ve run a little over  what I had told you, so I want to be respectful of your time, but I’m going to die. Yeah, yeah, me too. But thanks so much for coming on, Stormy. If people want to follow you I don’t produce any content whatsoever.

Okay. I don’t have fucking time to be honest. You don’t tweet at all? No, I tweet, that’s it. I have no YouTube channel. I tweet occasionally and mostly just snarky replies to financial people. You can follow me at It’s at Norman N O R M. A. N. underscore Dodd D. O. Sorry, Norman Dodd underscore new K. N. E. W.  Everyone should go look up Norman Dodd. And figure out what he knew. Got it. Sweet. Well, I’m sure people will, you’ll gain a ton of followers. So I’m excited to release this, but thanks again for coming on. I really appreciate it. It’s been a great conversation. Learned a lot and you’ve given me a lot to think about for sure.

I am excited to see where this goes. I really am. I think you’re you’re gonna have a lot of success with this. And I think you’re. Subscribers intent will get a lot out of it, and I’m excited to watch this bro.  Thank you. Me too. Have a good night, man All right, let’s end it there.  Bye. Bye.