← Simon Dixon Hard Talk
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Simon Dixon
Hey, hey, sovereign wealth builders. Simon Dixon here and welcome to another episode of Simon Dixon Hard Talk Live. I'm still on the move and if you've been following me on X, you may have seen a few of my tweets and interviews that I did. And I've been doing a bit of a roadshow on the podcast side. But today I'm going to be covering did the Iran war just save the AI bubble? Going to be connecting all of the dots of whatever, everything we've been discussing over the last few weeks in Part one. Now I'm going to be discussing the AI bubble, what it actually means, Deep Seek, the China attack vector and the new global order that was set up at the Shanghai meeting. Now we've had a bit of time to reflect in Part two. I'm going to be discussing that and testing my ideas from an interview that I did on BTT sessions with a panel, and that was Dave Cullum, which I've did a panel with before on BTC sessions. But we discussed the possibility of a bond stock and commodity collapse all at once and how that might happen. And we're going to be going over to that in Part two today. So let's jump right in with Part one. So this week we started to see the theater continue in the Iran war side. The Iran War Peace MOU is allegedly about to be signed. Not about to be signed. About to be signed. Not about to be signed. About to be signed. Not about to be signed. You can see that they're playing for time. And my thesis that I've been covering is that this was all around the timing of the Xi Jinping meeting, which we'll review a bit more today. And I've covered in previous episodes and I believe the MOU has already been signed and this is about timing it. And last week I put forward the thesis. This is to coincide with the liquidity needs of the AI bubble and the SpaceX IPO that's coming up. But the Iran Peace MOU is getting more and more details. It was leaked as if it were already signed, but everyone's getting their narrative now. Remember, I've always discussed when I worked in investment banking, when you're doing a big deal, you'd actually draft what people could say in the sequence of events, when you tell staff, when you don't tell staff, and what you're allowed to say, what you're not allowed to say. I believe we're going through that theatrics in order to have preservation of the order in Iran, Israel and America. That's needed in order to get this off ramps. Reset the world order. The crisis is guaranteed from what's happened already. But all of the contracts and repricing events that have been negotiated and the concentration of wealth upwards to the asset holder anyway, the Iran peace mou, whether it's signed, whether it isn't, it's going to be signed. In investment banking, the way a deal normally works is you have a letter of intent, you then go and do some execution, you then sign a memorandum of understanding, make sure you're all on the same page and then the lawyers get involved and you write down all the different terms and it comes into hundreds of pages of every single thing that can go wrong with milestones. If you achieve this in 30 days, 60 days, 90 days a year, 2 years, 5 years, 20 years, whatever it may be, and you know, guarantees ratchet clauses where you get penalized for not doing it, that's how it typically works. We're at the MoU stage of this as well. But at the same time I'm going to be going through as well the China US reset. Now that we've had a couple of weeks since the Beijing meeting. I also want to go through the AI Capex boom and what the numbers are telling us because now the SpaceX IPO and the Narrative and the S1 and the SEC filing has come out. So I've given it a bit of a review and I want to remind you of the long term thesis of what I was talking about when Deep Sea came out with the challenging AI economics which rug pulled the whole narrative and led to the biggest correction I think it was. Nvidia, if I remember correctly, had like a $600 billion correction when deep Sea came out. But they've ignored the narrative. So we're going to be reminding people of what potentially can come up. And the key question is, is the whole world being reorganized to support the largest AI investment bubble in history? And the answer to that I've been covering for a long time. So if you're a long term listener, you would have known that. I said everything that's happening in the Middle east is a reorientation around nuclear energy. Not nuclear weapons. Nuclear weapons. Is the public facing weapons of mass destruction narrative. It's really about energy and it's moving to a multipolar world and it's not the, you know, it's not in, it's not that the west is not, is in a genuine war, it's that the financial industrial complex is reorientating it and the military industrial complex needs compensating in revenue before they move over to central South America and Europe as their next escalation cycle. And we're starting to see all those narratives play out. So we're starting to see the MOU and the wind down of the Middle Eastern forever war model with still a narrative that this could escalate to World War 3, even though China could wipe out the US military industrial complex by stop exporting rare earth minerals and now they're running out of weapons and they just don't simply have the capacity. So we know it's all BS and that's why we got the theatrics of the Beijing meeting. But we're starting to get a real ratchet up of the narrative around NATO, which is just a sell strategy for the military industrial complex, which is a stock market stimulus. So Trump doesn't want to end it because that's the compensation strategy for the mic. But we started to see, you know, I think probably a false flag from Ukraine in Romania, we saw that before in Poland. So it's nothing new there, but slowly trying to, you know, just justify the military budgets that are needed. And now that we've had the regime change in Hungary, they can, the European Union is able to put those sanctions on the west bank in Israel and also unlock the Ukraine money so that they can spend it in the military stimulus check and keep the war going with Russia for as long as possible. And that's what I think we're really seeing here right now. So we're seeing a Miktick and FIC military industrial complex, financial industrial complex, technical industrial complex stimulus which is creating this really, really big investment bubble in the stocks. So the Iran peace deal and why the timing matters. I've already hinted that and covered in previous episodes, but we've got the Iran MoU details. And as I always said, it's not about ideology, it's not about religion, it's not about saving women, it's not about exporting democracy, it's not about any of those things. It's about money, resources, world order. It's about energy, it's about the Petro Yuan petrodollar, it's about commodity pricing. And so the end of the war framework has now been released to us. It involves the Strait of Hormuz reopening and the market reflected that. We had oil prices come down a bit. It also had details around naval de escalation. So the US opening up and Iran agreeing not to. So that unlocks the insurance contracts for once. This MoU is signed and we progress to the next stage. It also included US troop withdrawal. Remember what I said, my long term thesis over the years that the U.S. is going to be exited from, from Middle east and Middle east will gradually become West Asia and therefore Israel is no longer needed to destabilize the region. So Israel gets regime changed and rebranded. After we push Israel through privatization and acquisition into the gcc, the Gulf corridor and we push Iran into the China corridor and then eventually you get the removal of sanctions. You then get the holdout clause with Saudi Arabia. You get a good cop bad co op argument between UAE and Saudi Arabia. Saudi says we won't normalize until there is a Palestinian state. The Palestinian state gets institutionally built into the GCC framework, potentially via the border peace. And then Trump gets his exit narrative and you enter into a new negotiation cycle where slowly the Gulf countries and China Belt and Road Initiative and the FIC renegotiate the the defense agreements and it gets rebuilt as West Asia in partnership with the FIC MIC and tick, setting up a multipolar world global structure via India, via uae, via Singapore and other nodes in the network. So as part of that you need sanctions relief. When you get sanctions relief, you got 2 to 4 million barrels of oil come online. Then you need to determine how you're going to price them. Are they going to be priced in the Chinese yuan, Are they going to be priced in bitcoin, Are they going to be priced in the petrodollar? And in the end you have an architecture where China normalizes between the GCC and Iran. They have energy corridors that support China's needs into this AI takeover, as it were, that we're experiencing. You have the data center build out and then the FIC MIC and tick, they privatize asset, strip the west and shrink it into a regional power. And Trump is installed by the FIC in order to deconstruct everything that propped up the dollar and exported its global terrorism all around the world via economic hitmen, CIA, MI6 and Mossad. But anyway, in order to get there you need sanctions relief. So then Iran becomes an important node in the petrodollar, Petro, you know, the Petro Yuan and even the bitcoin alternative rails that it built by doing nuclear bitcoin mining and accepting toll booths and all of those, that type of stuff. Saudi is still important. There's only 35 million of them. They've got the cheapest oil in the world, $2 to $10. America's like $40 per barrel. And so nothing competes with that. And you know, America needs to feed 350 million people. And now they're exporting. Even though they're dependent upon Mexico and Canada for their diesel imports, they've been taking advantage. The big oil and energy companies have been exporting that boosts the stock market, boosts gdp, creates an inflation cycle, wipes out the middle class, wipes out the poor. And wealth concentrates upwards as those that own the assets, you know, concentrates that wealth upwards. And we've even seen a big tick node. Peter Thiel, he's just bought a house in Argentina. He set up his children to go to school in Argentina. And you know, and that was because he was in California. California is about to potentially introduce a wealth tax. I've always said, remember previously that a wealth tax means that the asset stripping for billionaires, not against billionaires. You know, you have a left wing government installed. Their job is to make you still believe in politics. They're going to look after the poor people. The right wing get to point to it because California was about to go to shit anyway. They're going to asset strip it. They're going to use this fiscal dominance cycle to do that. And then they get to say the reason it went to shit is because you installed communism. You have the capitalism communism, radical left, far right, all the BS to distract you from the reality that the financial industrial complex is using wealth tax in order to create a migration of millionaires and billionaires out of the country. Leave the people that don't have much wealth to pay the wealth tax. That leads to a decrease in tax revenue. It gives the left a narrative. We're taxing the billionaires. And then by design, all of the assets are then acquired by the fact that corporate companies can acquire and circumvent the wealth tax. And so it gives an advantage to institutional ownership over individual ownership. And then institutions basically make billionaires wealthier. And so when Peter Thiel is telling you follow the money, California is going to shit. And that's the end of game is always those wealth tax exit taxes. And then you get that exodus that is needed in order to manufacture the corporate takeover of the state. Okay, so sanctions relief, do that. Apparently there's a $300 billion reconstruction proposal. This is just a way of saying Mick, you know, fic, gcc, Sovereign Wealth Fund, China Belt and Road Initiative can invest in some of the rebuild the devil's in the detail. It may be that there's just like some reparations. I doubt it. It will actually be Some kind of contract that creates an acceptable narrative to Iran narrative while having foreign direct investment, which means that you lock the industry together in normalization between the GCC and Iran and through the petro Yuan and petrodollar you're able to normalize that region. And then you have UAE as the global financial center which is creating a network of central bank digital currencies that plug it all together, circumvent swift, get access to the swap lines of the Federal Reserve so they can create dollars in the Federal Reserve system and then they leave opec which propped up the petrodollar and move towards a BRICS energy agreement in line with West Asia and sit in the middle. So you've got the keynotes, you've got Iran, you've got Saudi Arabia, you got uae. They all perform a different function and this is transitioning and giving everyone the exit narrative that they need. Now why markets care that we need to do this now? It is because there is a wave of liquidity that is needed in the stock markets to invest in the capex of all of this AI. In order to do that you need to temporarily leading up to this, get oil prices down so that you can then have energy costs down, which is the key input of artificial intelligence. So oil falls and that's been happening ever since the market has determined that this is coming to an end no matter what theatrics we get. Then you may get some kind of demand destruction or future inflation fall which is also met with productivity gains of AI where humans are being laid off, which gives more profits to the large corporate, which makes everything more productive, which boosts the share price and then the stock options cash in for the executives and everyone else is just a collateralized debt obligation on some kind of ubi, cbdc, central bank, digital currency or stablecoin wherever you are. But you can get inflation to fall, so we have to keep an eye on that. But the most important thing is the Fed controls the whole game. So the long term bond market is the bondholders. And so if you want when the yields are going up, which indicates inflation, the only way to get them back down is for the Fed to purchase the bonds. And if they want to get the short term interest rate down, then they can control the Fed funds rate. And so you have handed over the whole game to the Fed. So all of the MAGA narrative of we're taking on the Fed, we're taking that no, you've handed the whole game over to the Fed. The entire market is dependent upon whether the Fed cuts rates or whether the Fed increases its balance sheet. If it wants to take down America and transition to multipolarity, it can do the opposite of what it needs to do. It can increase rates and it's got the inflation narrative that's needed. And it can decrease its balance sheet, which it probably won't do unless it wanted to end it abruptly. Or it can do a managed transition into multipolarity by getting the mix of QE and then potentially doing nothing with rates. Or it could do the crack up boom where it increases the balance sheet through QE and decreases the short rates and just turns America into an emerging market for just the wealthy where everything gets asset strips and concentrated. Or it can do a combination of the three. So the whole game is handed over to the Fed courtesy of the Trump administration. And that is by design because I've always said he's a FIC agent, he's not in neocon, he needs to compensate the military with some war. But he's not a neocon. He wants a deal. The reason he wants a deal is because he wants to asset strip the country. He wants all his Middle Eastern deals that have been backdoor negotiated with Saudi, with Qatar, with UAE and, and Kuwait and everything. But it's the asset stripping phase. He doesn't want, you know, destruction forever war because there's more money to be made in the regional stability. And plus he's a puppet for fic and FIC includes the Gulf Sovereign wealth Funds and China as well. So anyway, energy costs fall so we can get a bit of relief there potentially. And that helps the AI data center economics improve and the profitability can look better. They can try. But at the moment, the narrative is so far away from any kind of reality at the moment that this may be where they go and where they take it. But we'll keep reviewing. So the real question is, is did peace arrive just in time to support AI infra infrastructure expansion? And I think that's why we're getting the back and forth right now. And that's why the MOU required signing up to Abraham Accords and an Abraham Accord set off new negotiation cycle. But you need to leave Lebanon because Israel, it needs to be strategically weakened into the fic. And Lebanon and Hezbollah need to kick off a political integration process, much like happened with the Houthis in Yemen and Hamas in Gaza. And and then there's also Iraq to settle moving forward into regional stability. So the AI arms race narrative is what you'd expect to really take the focus. So the media kind of just like do you remember when we were all being told that we're killing our grandmas if we don't inject ourselves with poison. And then suddenly the death counter stopped on the TV and we were all told, oh, we all need to save democracy with Ukraine. And we were all being told why we need to send all our money over to Ukraine. And people were crossing the borders to save the Ukrainians, to save the free world and democracy while they asset stripped all the people and got you to be the soldiers. And it was revealed that they will America, the FIC will use the, you know, this war to the last Ukrainian. And so you'd expect the narrative to change now. So eventually we're going to get this MOU and it's going to be all eyes on what's happening in Russia and Ukraine again. So we're going through that cycle, that's the next one. And of course the AI arms race, which is China will win for national security. We must put data centers in space so that we can create satellites and data centers that control the entire world with China. So they're doing the it's US versus China while they're building the infrastructure with China. And so this will be the largest capital build out in history. Trillions and trillions of dollars. And so who are the current winners of that? Well, you can see that in the valuation of the stocks. Nvidia is one of them, Broadcom is one of them. TSMC in Taiwan, so that's on the American side with Broadcom and Nvidia. Tsmc, the Taiwan Semiconductor Manufacturing Corporation in Taiwan, Samsung and tx, Kynex as well, the South Korean parts of the ecosystem. That's why if you notice there was a bit of a squeeze on South Korea, Taiwan and also Netherlands is another vital part of that because you've also got Macron and sorry, Micron, don't confuse it with the French minister. And Trump did a boost this week to push it astronomical pump just like he did with Dell as well into Micron being another trillion dollar company in a vital part of the AI ecosystem which also goes into the, you know, the tsm, the, the infrastructure in Netherlands as well. So you got, and you notice that you get your wealth tax in Netherlands, you get the energy squeeze in Taiwan and South Korea and then you get all of the vital parts of the AI ecosystem that is going to be built by the FIC and tick in America and the CCP in China. And of course you've got the players that have the revenue to acquire Any of the companies, if they're going to manufacture some kind of dump cycle to companies like OpenAI and Anthropic that may not necessarily have the revenue. And of course they're all integrated into the Oracle ecosystem, feeding the data chain of Palantir and, and all the different AI ecosystem that's building off each other. So you got Microsoft as part of that Alphabet, which is Google, Apple Meta, Tesla, OpenAI, Anthropic and now SpaceX. So the Magnificent 7 becomes approximately the Magnificent 11 or 12 or something like that and is eating up the S and P, the entire S and P. So the economy now is the ancillary services around AI and robotics. That's the entire world, the entire economy. Because AI requires what power. Power requires every form of energy. Notice how the club of Rome narrative of, of climate change has just disappeared suddenly we don't care about that anymore. Now it's all about that national security to build out renewable energy grids with infrastructure that's built in China, across Europe and across everywhere as a result of the closure of the Strait of Hormuz. So we'll get a massive boost in the renewable energy build out as well as the pricing of oil and a transition to LNG and electricity and then every form of energy that's that's needed to power this, including the depths of space. So AI also requires chips and those chips require components, whether they be rare earth, whether it be cobalt from Congo via Rwanda by funding M23 in order to steal it and end up back in western companies, or over to China, whether it be AI requiring the cooling as well. So we'll get tokenization of water humans competing with AI for water in these cooling infrastructure that's needed. This is one of the reasons why when I built a bitcoin mining operation in 2013 to build a bond from Iceland, it was backed by volcano power electricity and it was cooled by the natural climate of Iceland. And we built the first ever bitcoin mining backed bond at banks of the future. It's paying daily dividends and it was powered by volcano energy and geothermal efficient cooling. And so these coal environments Greenland become interesting propositions as well as well as locking up the western hemisphere as well. So AI also requires vast amounts of infrastructure. And as I've said, that was all the growth, all the growth in America was AI infrastructure. So building out the AI and robotics economy flip the entire world chessboard on its head because nothing stops this train. So this is the biggest infrastructure build out since the electrification of the world. We are Truly an unprecedented time. And so to celebrate that, because the timing needs to be right, there is a huge liquidity need for all of these IPOs that Goldman Sachs are floating right now. So SpaceX did their S1 filing and to understand the size of the market, let me pull out some of the different stats that I thought were pretty interesting. So they did an analysis in the SpaceX S1 filing of the total addressable market. So this tells you, is this really a space company or is this a global surveillance infrastructure that's being built? Well, let's have a look. So of the valuation, the total addressable market that SpaceX is coming over is firstly the space economy. So how much is that? Well, they said that the space economy is worth 370 billion. So that's like charging to go up to space what you would think SpaceX does. Well, then you look at what is the second largest total addressable market is connectivity, I. E. Starlink. They think they can make $1.6 trillion through Starlink, which is global Internet connection into the AI algorithm and data and ability to control globally. The third largest contributor is this little item line that they call AI infrastructure. Okay, well how big is that? They said the AI infrastructure is $26.5 trillion. $26.5 trillion. This is not a space company, this is an AI company. And in order to get that, they want $22.7 trillion on enterprise AI. So that's turning every company into an AI and robotics machine, which means replacing their employees while they're building out, you know, as Elon calls universal high income. It's no longer universal basic income. This time they're actually going to want you to have money, apparently not wages that are decreasing at the rate at a, at a, at a, you know, decreasing relative to inflation, which is the model of control. We're meant to believe that this time they're doing it because they want to create a utopia. But anyway, now what is it that they need to achieve? What is the underlying assumption? The underlying assumption is putting AI data centers in space. And so that sets up the next military industrial complex, AI arms race, narrative, space wars. So it's the new cold war to justify Mick's next revenue stream. And so all narrative will be around that. That's the next narrative, the next pump and dump cycle. And so in order to achieve it, we have to reprice all energy, we have to figure out cooling infrastructure and your job. You know, we, we need to even think about sovereignty. What about, how are you gonna, what's the sovereign State of space. Do you think this might be about tax arbitrage? Do you think this might be about people being able to create a company in the moon, on the moon, or in space, in servers, as these wealth taxes leave the plebs behind while they acquire all the companies in a space incorporated tax shelter so that they can acquire all the assets on the one global control grid that requires both China and the FIC and the tick to build it? Or do you reckon it might be regulation arbitrage? Do you think that has something to do it? Do you think that's why the FIC is transitioning away from America right now, because they're hedging their risks and finding multipolar jurisdictions to build the one global control grid? So my question is, who has tax jurisdiction over artificial intelligence and compute in orbit? We will keep answering that question. And so let's have a look at what happened, what we've seen since the last couple of weeks, since China. So let's do the China reality check at the moment. So Trump's Beijing visit. What were the key points that we covered? This wasn't diplomacy. As I said, you don't go to China in order to start a negotiation. You bring the fic, tick and certain parts of the mick because there's a bit of friction there to meet the ccp and they give a photographic moment to signal to the rest of the world what the new world order looks like. And it involves Xi Jinping on a higher chair with Trump on a lower chair, walking through the the with China children flying children's flags on a red carpet with the executives behind Xi Jinping and really Trump subordinate to those executives. That is the symbology of the world order. So Trump is a gateway to real power, which is fic, mic and tick with Xi Jinping saying, if you want to play our game, you have to do it on our terms. And reason why the executives were there is because they needed to check that their supply chain is still intact. Elon needs to know, please, China, you going to give us our rare earth minerals? Are you going to allow us to continue making Teslas so that you can build your factories with the brain train into BYD and accelerate above that. It was Tim Cook saying, please, please, China, can we please continue to make Apple iPhones? We'll put a little bit of money in the really expensive part of building some data centers in America, but please, please, please do not disrupt any of the supply chains. These are a MasterCard. We're saying, please, China, please, China, can you give access to some of your payment rails so that we can charge fees because we can't control the Chinese payment system but we do want to charge some fees in building bridges around the world in a multi polar world into the Chinese payment system. And please, please, please we know that you're not going to give up your capital controls. We know that FIT can't penetrate China but will he let us at least make money all around the world into this new multi polar fixed structures that we're, that we're building. And so the players were Elon Space, Teslas, Xai X social credit scores. It was Jensen Huang from Nvidia. And remember what happened prior to the meeting. Taiwan, America prior to the meeting Trump announced that they will they it went really under the radar but the 13 billion dollar contract, defense contract for the mick in Taiwan was canceled. He also lifts the sanctions on Nvidia chips and China said no, everyone focus on Huawei chips. Tin Cook was there from Apple, Goldman Sachs, you know was there discussing probably please, please, please China, how much of the voting rights do we need to give you in order to invest in the SpaceX IPO and the Anthropic IPO and please go and please keep buying some oil from the Gulf countries because we need them to have some voting rights as well. And what mechanisms are you going to use in order to gain some board seats? Please, please, please, please buy more equities so that you get more control foreign direct investment and the returns go to China and into the multipolar world rather than staying in America. And we'll keep increasing the liquidity but just don't sell our bonds, don't sell any of the bonds. Do it slowly. We'll manage this transition. We'll do it in an orderly fashion. The bond yields are over 5% on the 30 year and 4 1/2% on the 10 year. Don't worry, the Fed will regime change the Fed. We put Kevin Washington, he's connected with the Lauda family and don't worry, we'll make sure that we manage this together. Don't worry, we're the shareholders in the Fed anyway. The banks own the Fed and of course BlackRock, you know will make sure that the ETF fund, the funds are flowing. Visa, MasterCard were there, Quantcom com was there, Geo GE Aerospace was there. And the discussions were really essentially what China wanted. And China just said one thing, Taiwan's off limits, Taiwan's completely off limit. And so Trump went back and said yeah, Taiwan, no independence, let's not talk about Taiwan Anymore. We need, you know, we got some weapons to create and we need China to help us create them. And it was all about technology. So they said you can get that. You leave at layoff Taiwan, we'll give you some technology access. You know, America can give some more technology assets. We'll allow, we'll build our factories there. Our big companies will make sure that we can use your manufacturing base. And yeah, we understand China's rules. You effectively get to brain drain and build an alternative factory. But just let us carry on. We'll just, you know, carry on. As long as we can print some more debt, we can get people to subscribe. Now if they can't afford it, we'll give them a loan in order to buy a charger and we'll keep the credit cards going. We'll put them on 50 year mortgages. Don't worry, we'll turn them into 50 year debt slaves so that they keep buying. But please, maybe let us have some of the China market so that your people purchase some of our stuff. Maybe you carry on with the Belt and Road initiative. You know, those Africans, they're having children. Why don't you build them up so they can start consuming some of the products. Why don't you do that in Southeast Asia as well? Maybe we could do some of that in Middle east, in regional stability. Don't worry, it will be called Middle East. But it's West Asia, it's your territory. Iran's blowing up our bases right now. The Gulf countries are going to be investing in the rebuild. You'll get to invest in some of the rebuild as well. And don't worry, we'll shrink back to a regional power is right. I got a call, you know, it's called maga. They're going to think here's the scam. Yeah, they're going to think I'm trying to make America great again while we just strip all the assets and transition the world to multipolarity. You know what the funniest thing about this scam is? They actually think that I came over to the Strait of Hormuz because I wanted to choke China when you already had, you know, $1.6 billion of reserves. And they actually thought we were in a trade war. They thought I was trying to make America great again. When really I got you all to negotiate into a multi polar world. Because you know, Larry Fink's here and Gorman's is here and, and I'm making bank. I'm making sure. Did you see my World Liberty Financial scam did you see my Trump token scam? I managed to even get them to buy a stable coin. I managed to get them to buy a stable coin which was backed by funding from uae. And don't worry, your guy Binance, I gave him a pardon as well. Don't worry, he's over in uae. Binance is now located over there. And. But, but people think I'm creating crypto capital. They don't even know that we're building the police and surveillance state for the technical industrial complex. But don't worry, they'll keep wearing those red flags, make America great again. They'll be like, I just need to sacrifice a bit more, take on a bit more debt. I know I can't afford anything, but Trump's my man. He's making America great. He's taking on the deep state, he's taking down the finances in. He's taken on, he's taken on the cabal. Though most people have figured that one's not true. But there's still a cult following that will allow it to continue for a bit more. Now all you need to do is, okay, here's what we'll do. We'll open up the straight for moose shipments can go through. You sign, you've signed the MoU and we'll give you a final Hollywood movie. Maybe do a bit of escalate to de escalate. We're right into the contract. How you make it look like a victory that's acceptable to maga and, and then just go, go get those, those that, that's those ipo. Pump the market and build out your partner of the robotics and data centers and AI as well. So this is effectively exactly what US Corporate America wanted. China said leave Taiwan. US Corporate America got what they needed. And the two centralized powers, FIC and oak, that controls tick and mick fic and China will build out the whole narrative that's needed. But the rare earths, we control them. The manufacturing, we control it. The supply chains, we control it. The consumer market, let's figure out how that one works. But we might give you a little bit of our market. So what is the takeaway? The tariff war basically exited at this moment because the supply chains won. And that was by design. It's not through stupidity. It's not because Trump is a rogue actor. It's by design. And so it was always. And that's why, if you go back to my blog before the tariff war, I was saying April 2, 2025 is Dollar Liberation Day. Bankrupting small businesses in America because They import and they pay the tax. It will concentrate export dependent country companies up to transnational capital and it will drive everyone into negotiating towards brics as Trump shrinks America into a regional power and an asset strips everything into the stock market, loads up on debt and sacrifices the world reserve currency in the process. And I, you know, this is just economics, you know, not the economics. They want you to know the economics. That's just obvious. And so as we always knew by design now what else have we got? We know from the event I told you about earlier with Deep Seek, the deep sea can burst the AI story. And maybe we get a second round too to remind people because it seems like everyone's forgotten the story. The market is pricing that it doesn't remember the deep sea story and it's really pricing. This whole AI bubble is based upon compute scarcity buying the supply chains from Nvidia that require Taiwan and South Korea and Netherlands in order to get through that supply chain. And so it's not the actual AI profit. So remember that what I said, markets now are a function of three things. Money printing, that's the Fed, that's the bondholders, the banks, ETFs, that's the asset managers, that's black blackrock, passive inflows and media control. And so rather than talking about price to earnings ratios or profits or anything, you just talk about narrative. And so that's what's happened. And so everything is about compute scarcity, that everyone needs this compute scarcity AI is changing the world. But what did deep Seat prove? Let's remind ourselves. It basically proved that there are frontier models and that they are far lower compute needs and they require significantly lower capital requirements, we seem to have forgot that. And, and so if it's true that Deep SEQ and the frontier models require far lower compute and lower capital, whether you believe the numbers or narrative or not, that came out from that then Nvidia basically assumptions break. So the entire model of the backbone of this break. Now I'm not saying that they can't push this narrative for a while. I'm not telling you to trade this or anything you do you. I think there's a lot more to go in this but people seem to just, that's why we know this is correctly framed as a bubble like the Internet bubble because the assumptions are incorrect and we know that we're going to be moving towards ever more efficiency of this. So is this capex the right model? You know this is all built upon the hyperscaler assumption. Can we will it does it break the hyperscale scalar assumption? This is the semiconductor assumption. Could it break the semiconductor and hyperscaler assumption that this entire thing is built upon? So the question is, is compute really the moat? And if it isn't, then this is a bubble. Not that AI and robotics ain't going to change anything, but that could lead to a real pump and dump cycle alongside the other things. Now, when we do. In part two, I'm gonna go. I went through, I got asked this question in the interview on BTC Sessions by Nathan with Dave Column, and I talked about China having three structural rug pulls. And in part two, we'll go through those. This is one of them. And then there's another two in the commodity market. This, this is the stock market one, and then the bond market as well. And so this is a semiconductor bubble. And that means that if this frontier assumption is true, then Nvidia is overvalued. AMD is overvalued. Broadcom is overvalued. TSMC is overvalued. ASML is overvalued. Micron is overvalued. Samsung is overvalued. Sky Ski. Sk. What am I trying to say, sk? Hynix is overvalued. And the market is pricing as if these are, you know what the price that we're getting right now is because, and only because they are strategic assets. And it's not because there is a cyclical semiconductor super cycle. And so that means that the rug pool exists if they want to use it. Now, whether they will use it or not is an interesting thing, which implies to me that this is the leverage that China and the FIC have constructed over the West. And that's why I'm pretty sure that they went to Beijing to lock in the two centralizing powers that are building out this AI control surveillance grid. And so what is propping up the bubble? What keeps it going? I'm not saying it's about to burst. I'm saying that it is propped up by several pillars. One index flows. And so with SpaceX, the argument was, can we value it at over a trillion and can we get that included in the indexes so that we get access to the passive flows from day one, unprecedented, never happened. Pillar two is narrative. And so you'll see all the billionaires right now on the podcast circuit saying, the AI arms race, if we don't do something, China's going to win space. All that stuff, hyping people up, hyping people up. That's the, the, the narrative in Pillar Two, pillar three is government policy. And so you know, you got to, you got to make sure that deregulation and so we're getting deregulation. Nothing stops this train. If we regulate, then China will do it. And that's true. I'm not saying it's not true. All of these are true, which is why it's a checkmate. This is hook, line and sinker. This is, you have to lean into the AI stuff in order to be productive, as does your company. You need to be building stuff with AI, but you need to be building a sovereign strategy on the side, spending less than you earn, investing the difference in bitcoin and self custody, whether it be gold, if that floats your boat and you have a choice, you either use this opportunity to accumulate bitcoin at cheaper rates because the liquidity is being sucked out into AI and you try and value your wealth in bitcoin and end up with more bitcoin through this cycle, or you lean into this and you're a capital allocator and you're able to always have your capital deployed in the best thing, very hard game. Most people get it wrong, but you're using that in order to exit the system with your returns. Either is right for you, either might be right for you, but then you need to fend off the deep sea attack, you know, which is attacking basically pillar two, which is the narrative. So China can attack the narrative whenever it needs to. With another deep seat moment. Maybe we'll get another one. Maybe they're preparing the next announcement to coincide with the IPOs. And that's the coordination. That's the coordination. So there's going to be a coming API IPO wave very much like the dot com cycle. And we're starting to get. Remember Michael Barry? He was the guy in the Big short. He's been mourning for a while. I don't think he's quite got his head around the geopolitical significance of this and the, the bailout side, but he's been given the warning. And he was the one that led everyone up to predicting the financial crisis in 2008 and put on the Big short narrative where he made a chunk of his wealth. And so the potential mega IPOs that we got coming up, and in fact they are coming up, we got SpaceX, we've got open IO, we got anthropic. And there is really a comparison to the dot com. And if anyone remembers my history, it was the dot com boom and bust cycle that got me into this in the first place. I've been on this for 25 years and it was when my father lost all of his money and in the dot com boom and bust cycle he fell for the narrative. He put everything in, he went from rags and lost everything. And he came to me one day after losing everything and said son, what happened to my Money? And for 25 years I've said about answering that question, very fortunately I was able to look after him because in answering that question it took me in the journey that I've been on and got the experience in banking, realized that brokerage was a sales strategy, a narrative strategy. When I worked in market making, it was all about market manipulation for the fic. When I worked in corporate finance and investment banking, it was all about turning businesses into securities and making them subordinate through debt cycles so that you can get leverage over them and make them complicit to FIC structures. Then I went into not for Profit and started working on banking reform. That's when I discovered all the politicians are owned by the fic. Then I tried to create a bank and realized that the bank of England was a mechanism for capture. Tried to create a fraction, a non fractional reserve bank and realized that they would force me to build it on top of Barclays so that they could have fractional reserves on our non fractional reserves. Then that took me to pivoting the business bank to the future, writing the first published book in the world to include Bitcoin and pivoting the business in order to invest in many of the bitcoin companies. After speaking at the first bitcoin conference in the world, then I saw all of those 100 companies, the ones that survived became subordinate to FIC. Whether it be Coinbase, Robinhood Circle, Kraken, Bitfinex, they all became subordinate to the Bower structure. And then I ended up selling my business to Coinbase and now they're using that brokerage in order to build tokenized securities. And Brian Armstrong met with his fic Larry Fink. And then now they're trying to tokenize everything invested in a company called Securitize in order to try and build securities out the system. That's when I learned that the regulators capture them into the system and now they're building bonds on tokenized bonds for BlackRock, one of the largest liquidity. So everything I share, I don't share it from a conspiracy theory, I share it from experience. And that's why I exited the market and and then said about trying to give content to help people understand how to be sovereign. Try to help several countries, whether it be Islaman uk, El Salvador, build bitcoin sovereign strategies to different degrees had to deal with in El Salvador the attack vectors of the imf. That's another story I have to tell. One day with Isle of Man, the bank of England contacted the Isle of Man government and said if you follow this bitcoin strategy, we'll take away clearing to your banking system. That end of that one. Met Boris Johnson in uk, gave him a bitcoin strategy. He plagiarized it into rather than the bot, the bank to the Future campaign that was named for company Bus to the Future. That's when we had to chase us out of the country. Then I had to reincorporate and came and moved to Hong Kong, discovered the jurisdictional arbitrage other understood how global wealth and how the wealthy do it and, and, and just, you know, so everything I'm sharing, I'm, I'm sharing from direct experience. People call me a conspiracy theorist. But anyway, in 2000, that took me on a bit of a tangent. There was about 446 IPOs, Michael Barry was, Barry was warning against and they raised about 108 billion. Let's get this together. So 446 IPOs raised 108 billion. What are we doing today? We're potentially facilitating trillions in valuation on day one right into index funds. So the question is, could these IPOs become liquidity drains? And we're starting to see that in the bitcoin market, which is why it's able to, if you value your wealth in Bitcoin, you get to buy bitcoin cheaper at these fiat currency valuations. Or are they liquidity craters now? I don't know the answer to this question. This could be. I think they're going to do fiscal dominance. I think they need a big print narrative, which means I think they need to manufacture a crisis. And so could this be a liquidity drain that to buy the news or sell the rumor event and the Fed kicks in to transition the world to multipolarity or are they asset stripping further? They're going to do fiscal dominance. They're going to get the QE to increase their, sorry, the Fed to increase their balance sheet and they're going to, you know, create more and more liquidity. I tend to favor the second, but I, I got to be honest, don't trade about on any of this stuff. It's going to be really, really interesting. But it's kind of like what Trump did with Trump Token, right? Remember, he launched A token. And squeezed all the liquidity out of the meme coin and shitcoin market and just killed the market through a liquidity squeeze. That's how you get everything concentrated. That's a pretty good example as well. And, and that's how you get the global control grids. You, every, every policy in Trump has concentrated power, whether it be Department of Government Efficiency, get all the data into Palantir and act. Whether it be the tariff wars, concentrate wealth upwards, remember Operation Warp Speed, massive concentration of wealth. Whether it be the Epstein files to, you know, expose parts of the system, but not expose fic. Or whether it be the closure of the Strait of Hormuz to engineer a crisis in order to make massive rebuild contracts for fic. Compensate Mick and take us towards a tick police and surveillance state. But anyway, it's pushing everything together, concentrating wealth upwards with a MAGA narrative on top of it. So what are the required components for this control grid anyway? Well, it's artificial intelligence, which requires open AI to go public. Anthropic to go public is compute, which is Nvidia. TSMC is Energy, which is the LNG companies, which is Golden Pass, which is Cheniere Energy, Chevron, Exxon. It's nuclear power as well. So there's a nuclear narrative in the, in, you know, they're dressing it up as nuclear weapons. And there's a solar part to it, which is 90%, 95% dominated by China as well. There's a battery side of it that's a China story. That's where the African, you know, leaning into the Belt and Road initiative and unwinding the IMF and saying, no, we'll hold our components and we'll build the batteries. You build the factories here, which is a game changer for Africa. I really look forward to seeing how many countries can do that as well. But those are all China stories. Electric vehicles. That's a China story as well. A little bit in Turkey, which is interesting. And connectivity. So that's the starlink side that needs. And then you've got the space side, which is SpaceX. The AI side, which is Palantir, Police and Surveillance State, all the government contracts. And then you need payments, which is Visa, MasterCard, stablecoins, central bank, digital currencies and BlackRock's tokenize everything. You need the data you need, the AI. And the core thesis here is that effectively AI, energy, payments, connectivity and space are all converging into a single global control grid. That is the thick tick private interest with China. Wall street is driving you into bitcoin custody as well. And so we had Strategy, we had 21 Capital, we had Nakamoto. What are they doing? They're taking in the case of Adam back wrapping a developer into a Wall street wrapper. There was the Epstein operation to invest in Blockstream. There was the other side, the alternative. The alternative narratives. If you haven't seen my on SimonDixon.com There was a couple of blogs. I did the truth about the Epstein files and Bitcoin. You got to get the nuance there because the open source sides are really important no matter how many attack vectors there. I also did a blog on was Bitcoin hijacked? In response to those that are claiming that the version of Bitcoin is the Epstein version and the alternative is a better, I mean stupid, just ridiculous stuff. But check out those blogs if you really want to understand it. But you know Wall street is driving you into Bitcoin custody. They're then wrapping strike into Bitcoin backed loans into a Wall street wrapper funded by tether liquidity. What else are they doing? They're taking the Bitcoin conferences, Bitcoin media companies, Bitcoin magazine via David Bailey, wrapping it up into Nakamoto into a Wall street pump and dump. And then Michael Saylor's launching products that rely upon institutional Wall street fic money in both debt, equity and prefs in order to build out the bitcoin derivative complex so that they can manipulate the short term price of Bitcoin to get you to put as much Bitcoin in custody so that you can borrow against it, so they can margin call you, so that they can get you to gamble and leverage and hand over all your bitcoin to them. Knowing that the long term fixed supply of Bitcoin on a distributed supercomputer that no government can take down on open source code that has continually tried to be infiltrated but always resists with competing implementations with 25,000 people running nodes that enforce the rules and the ability to maintain Bitcoin in self custody because not only do we want it if we can use it, but elites want it as well. And so for all of those reasons they want you to hand it over to them knowing that that's the escape valve. Just like Peter Thiel was escaping to Argentina using jurisdictional arbitrage and was part of the Epstein operations to try and confuse you into an alternative version of Bitcoin. As I covered in those stories, they're trying to make you sell your Bitcoin through these, these price action cycles. Your job. If you believe in the long term story, you can do all this with gold. If you don't, I believe for many reasons that you need the ability to transport away from an oppressive country when you need to. But the, the that by suppressing price action as long as you value your wealth in Bitcoin, you get more Bitcoin for your, for your currency. And they know the game is patience because they know the level name will be 21 million Bitcoin. And that's why the Bitcoin strategic reserve is not the US government buying bitcoin. It's the US government confiscating as much Bitcoin as it can for the fic. And strategy is the vehicle for centralizing as much of it as possible as well as the Blackrock ETFs. So anyway they want you to leverage it through loans and, and perps is a new thing, the hyperscalers or the, sorry the, the hyper liquids I think it is. So they're just trying to turn everyone into degenerate gamblers as well so that you can get wiped out fast with this price manipulation. And you know, because they know it's a neutral reserve asset for the individual and they're trying so you know, I'm no fan of centralizing it in governments and companies but you can't stop it. Bitcoin's for everybody. And so we just need a core community of people that hold it in self custody and take advantage of the sovereign nature as well. And nothing stops that train as well. And so what are they doing anyway? Well they're building the outside AI bubble which is the control grid. And we fight back with sovereign individuals, sovereign companies, sovereign countries. And so you know, this is outside of politics. They want you distracted with left and right. They want you distracted with everything they can. Immigrants, communists, Muslims, Jews, whatever they can throw at you. They'll distract you with it. To say that that's the enemy because they don't want you to see a suffic and that you actually get to vote with your money. And one thing I did do is I did an interview with Tom Blue on Impact Theory and I revealed there how you break the system. And if you haven't watched that, maybe we'll do an airing of it next week. But if you want to watch it in the meantime, it's up on the Impact Theory channel at the moment. And so if the AI bubble or the AI trades is the largest bubble in history, where does capital rotate when it breaks? Does it rotate into crashing Bitcoin with it and then you get significantly cheaper bitcoin or does it rotate into bitcoin as it has with previous crashes? The point is we don't care because I'm not encouraging you to time market own more bitcoin this month than the previous month. You don't care about price. When it goes down you get more. When it goes up you get more fiat purchasing power to take on the FIC with your money and you vote with your money. So anyway, let me just do some final closing predictions before we move into the Dave column interview on BTC sessions. So anyway, prediction one no surprise here. I think the Iran deal progresses. I think they've already signed. You might get escalate to de escalate another round of theater moving over to Abraham Accords and Lebanon will be used to set up the next bits of negotiations to keep the theater going. But that's the next negotiation cycle. I think Iran's going to sign a deal and then it goes into all the things that we covered earlier in the show. I also believe that leads into the regime change in Israel narrative through the political process. But you'll get a ultra Zionist far right probably to appease the voters. Maybe not far right, maybe more centrist to please the voters. But behind the scenes there'll be a GCC puppet to privatize Israel and allow for acquisition into Abraham Accords if it happens. Which will then lead to a Palestine through Saudi through the holdout clause and then that will lead to eventually over the years ahead, an Arab majority through the regime change that happened in European Union. You'll start to see more sanctions on west bank. You'll start to see Jews rule the world, Israel rules the world. As the blame shift as well as not answering the question of who controls Israel, you know, who's the Israeli lobby that controls Israel, which is all the value goes back to Mick and and yeah and eventually we'll have I think an Arab majority Palestine and it will be in the Gulf, the Gulf, the GCC grids as well. It won't be everything we want. It won't be justice. But I think it will be better than what it is. Prediction 2 what have we got? China US define it's basically the, you know, the defonte let's say continues and so those are the two centralizing power and the narrative will really ratchet up. We may get that, you know that other deep seek moment. Let's see whether that comes. Prediction 3 SpaceX, IPO and arms race. That narrative, it's going to intensify like crazy. To solve the liquidity. And I think they'll time the strategic announcements around the opening up of the Straight for Moose around Goldman Sachs's requirements. Prediction four, what I said before, we'll get that deep steak style, you know, style efficiency breakthrough continue and maybe they're leading up to another version that does something significant and they'll time that around, you know, any type of correction in the market that's needed that may lead to the big print narrative. Prediction five is that the AI CapEx expansion basically is going to diverge further and further away from the AI profitability reality. So the amount that they're spending on CapEx is going to divide further and further and further to the profitability reality until you're paying for like 10, 20 years of income into these valuations so the insiders get those maximum valuations. So the final question is, are we witnessing the birth of a new technological super cycle or the final liquidity fueled bubble and is that going to burst before a major, major market repricing? I actually don't know the answer, but I believe that both are going to happen. I just can't time it for you. But we'll keep covering it as it happens. They've set up both stories so they can maximize. Remember how the FIC works. It sets up both stories, it profits from both stories and it uses derivatives and hedging in order to extract fees no matter what happens, which is the concentration of wealth upwards. But, but I think that I'm moving further and further towards that. This bubble has got a lot further to go. With that in mind, let's move over to part two, which is my interview on BTC sessions with Dave Cullen. We were discussing whether the three structural rug pulls. My idea that I was saying that could be implemented if we wanted a major correction event. And that is how you would engineer a stock commodity and bond market crash all in one go. So always remember you're alive at one of the craziest, most interesting, exciting, terrifying times in financial history. Some are going to do well, others are going to do really badly. I want you to be on the right side of the chain. So I give you the best thinking that I got. So hopefully you can make this transition more peacefully, be more sovereign and then you can help as many people, yourself, psychologically, your family, your community and we can fight this centralizing force with decentralizing force. And the last thing they want is a bunch of wealthy people outside the system that are working on decentralization, which is why they're trying to get as Much of you to give your Bitcoin to them. Enjoy the interview and I'll see you this time next week. Peace.
- [71:12]
Interviewer
We recently had the US and Iran technically break the ceasefire. Are we actually getting close to a deal?
- [71:17]
Simon Dixon
I think it's already been signed. America is not a sovereign state. It is controlled by complexes.
- [71:22]
Dave Cullen
It really looks to me like someone put cement blocks under the Iran war to make sure that the headlines were about the war. Now about the markets.
- [71:30]
Simon Dixon
You've literally got a stock rug pull from China, a bond rug pull from China, and a commodity rug pull from China.
- [71:38]
Dave Cullen
The SpaceX IPO is fantasy. It's priced at 100 times sales. The fact that they have to jam liquidity into the system to accept these IPOs tells me that we're in a dying, gasping final phase of capitalism.
- [71:53]
Simon Dixon
Capitalism is death, there's no doubt about it.
- [71:56]
Dave Cullen
It strikes me as a Ponzi scheme on trillions of dollars scales.
- [72:00]
Simon Dixon
Larry Fink is not our friend. Strategy is not our friend. 21 Capital is not our friend.
- [72:05]
Dave Cullen
Everything I know says that when you displace the system from equilibrium, the further from equilibrium we are, the more violent and destructive the return trip.
- [72:16]
Interviewer
Simon, Dave, thank you so much for jumping back on for an update, guys. Really appreciate you stopping by. We've got a lot to cover today. Essentially we have the AI and the SpaceX IPOs that are kind of reshaping the market. Got Kevin Warsh and the Fed and what they're going to do about rising interest rates and of course the strait of horror moves which we recently had. The US and Iran technically break the ceasefire, but yet somehow the deal seems to be progressing forward. We're just days away. So Simon, starting with you. We flagged the China summit as when we were expecting to get the deal. It's now come and gone with no announcement yet. It does seem like things have definitely changed. So what's your read on the situation? Are we actually getting close to a deal and is there something that's keeping this dragging on?
- [72:56]
Simon Dixon
Yeah, so yeah, I'm going to have to move the goalposts. I was looking at the China summit for announcement, but I do think it drove things forward. So it was very uneventful in Western media. But what actually was it? Well, it was essentially all of the key players from the financial industrial complex and the technical industrial complex and a few players from military side meeting with Xi Jinping and I would call it more of a check in report. You don't go to these meetings to start negotiations. You go to these meetings for Optical reasons. So when you need the photo moment, you do the actual meeting. And there was a bit of symbology. It was very much on China's terms. There was an element of shorter chair for Trump, higher chair for Xi Jinping, a little bit of optics not meeting at the airport, which is actually how he did it with Putin. So he kind of put them both on equal terms. But I think the most important thing from it was that it was actually the real players in the AI race and those that are going to be determined in the future of payment corridors that Trump brought to the meeting. And it also led to a bit of a stock market pop, which was, you know, the desired photo moment. Immediately after it, we got about 20 shipments passing through the street and we had right now all of the, what I call feeding public narrative for the relative audience. So you've got Israel feeding its relevant narrative, you've got Trump feeding his narrative, and you've got Iran feeding their narrative when all of them are sat down negotiating. So what people said would never happen has already got a memorandum of understanding. However, I believe that everyone needs their exit off ramp narrative. And that's what I think we're leading to. You know, Trump needs the photographic moment of, you know, I got, I got the best deal and I forced Iran to do a deal. That's the optics he needs. Going into the midterm, Iran needs to say, we resisted under all pressure, we never caved in, we got the toll booth or whatever terms they get in the end. And then Israel needs to say, you know, they were doing the good cop, bad cop. Anytime America wanted to delay, they say Israel blackmailed us and persuaded us to do it. That leads to a change in the terms. And then America and everyone in Pakistan comes back with a slightly updated memorandum of understanding. I think it's already been signed and now they're just playing theatrics in order to get what the final MOU is. And then there'll be a 30 day, 60 day, 90 day sanction, relief, stroke reparation investment, stroke unfrozen funds, and everyone walks away with their victory narrative and we move to the next stage. So that's how I interpreted it. And leading into the other stories, and I'll pause here. I think now they're trying to time it with the liquidity needs of the major IPOs that are coming. So that's my next goalpost. I think they really need major liquidity leading into the IPOs and then also making it a successful IPO. And we've kind of led to these all or nothing events with these IPOs. So I'll kind of pause there before
- [76:46]
Interviewer
I let Dave jump in here. I just want to quickly with regards to the way that they're hanging on to the deal coming narrative. So what I kind of mean by that is previously it seems like every time they said they were close to a deal and it would last for about 24 hours, that tend to be on like a Friday or going or Sunday going into the Monday markets open. But they've held on that like we're close to a deal for a few days now. Are you reading that as a significant change or am I making something out of nothing?
- [77:14]
Simon Dixon
No, I believe the deal is still coming. Now, there may be one more escalate to de escalate because as I said, Trump needs his photo ops moment. If he doesn't get his photo ops in the midterm elections done. And he kind of went off the rant and said, let's move this into Abraham Accords. So in order to get a deal, everyone needs to join Abraham Accords. That sets off a new negotiation cycle with all the potential members. Now, many of them probably won't join and Abraham Accords may be dead. However, we've still got the holdout where Saudi Arabia is saying unless there's a Palestinian solution, there is no Abraham Accords. So it kind of just sets up the next phase of US exit from the region and, but I think they're trying to time it. You can tell the market doesn't believe that there's another escalation cycle. We got gold 4500, we got Vix at about 17. That's, you know, it would be above 2530 if they believe that this was going to enter into another kinetic phase. We got record highs on the S and P above 7,500. Again, what has changed is bond yields. Bond yields are showing significant stress and they went above the 5.6, 5.1% on the 30 year and 5. 4.6% on the 10 year. And that creates serious issues in the real estate market. And so the narrative brought it down ever so slightly, but they are far away from where they need to be. And so the bond market is really saying, get this wrapped up, we can move to an equity market IPO and everything's good. But oil prices will go back up again if there is another escalate to de escalate phase. But all in all, the market is definitely not pricing in World War three, a nuclear reaction from Israel or something that's going to be more systemic.
- [79:16]
Interviewer
Dave, what's your read on the situation? What are your thoughts there?
- [79:20]
Dave Cullen
I'm guessing more. The SpaceX IPO is fantasy in my opinion. It's priced at 100 times sales, which is just ludicrous. The fact that they have to jam liquidity into the system to, to accept these IPOs tells me that we're in a dying, gasping final phase of capitalism. It just feels truly terrible that this kind of crap has to occur. I watched Larry Fink on stage the other day saying, look, harsh reality is all these data centers are going to have to come out of the pension funds of the capital is going to have to come out of pension funds of mom and pop. And I'm going, and then what you're going to do is you're going to default on them, just like broadband in the 2000 bubble and you're going to fuck the pension funds completely. And so again, gasping capitalism. The equity markets are suspicious as hell. They look to me like before the Iran war. They were rolling over in a serious way. It really looked like it was forming this bound of a top and was finally going to projectile vomit its way through what I think should be a secular bear market. And then all of a sudden, just out of the blue, it just spikes and just never looks back. And you hear stories of the gamma squeeze, which actually makes sense to me. And I find a gamma squeeze particularly evil because of the the fact that it takes a market that's going up and then it pumps the mechanism to make it go up faster and faster and faster. So it strikes me as a Ponzi scheme on trillions of dollars scales. And I could imagine the gamma squeeze being driven by call option buying by price insensitive buyers, AKA sovereign states of some kind. Ours would be my first choice probably, if I had to guess. But at some point the gamma squeeze has to undo because the call option buyer has to stop buying. Well, they don't have to, but you would think they would. And then all of a sudden Wall Street's got to liquidate all those equities they bought as hedges against the call options. And so they're going to all get sold. And so it just completely unwinds. And that could be the beginning of a secular bear market. I don't know. It really looks to me like someone put cement blocks under the IR to make sure that the headlines were about the war, not about the markets. I totally agree that the bond market is showing stress. My nightmare scenario for many, many years has been a secular bond and Equity market simultaneously. We haven't seen one of those since the 70s. And that would be ugly. And I think the bond market is, I'm seeing people, serious players, quoting, you know, 12 to 14% yields over the next half dozen years. That would destroy a lot of, there'd be a lot of corpses in the street if, if that happened. So the idea that markets look forward always makes me laugh. Shut up. The that's my dog was almost put down a week ago and is now thriving. I think, I think, I think we're so off kilter and here as a scientist, what I'll tell you is everything I know says that when you displace the system from equilibrium, the return trip, the further from equilibrium we are, the more violent and destructive the return trip. So think avalanche, earthquake bombs, you name it, exploding laboratory experiments got out of whack. And in all those cases it's a return to stability the hard way. And it seems to me that for the last dozen years we have pushed the markets way past a logical topping point. And I made a compelling case, I think, in 2015, that the market had yet again gotten in the nosebleed section. And 10 years later, here we are much, much higher. And by reasonable valuation metrics, we're 150, 200% over historical average valuation. I sincerely believe that if we don't have a regression to the mean in our future, then capitalism is destroyed. And so the optimist says we're going to have a regression to the mean. The pessimist says we're not. And so, and that puts it in the, you know, 75% correction. Assuming, assuming it doesn't do any damage, that just gets us back to fair value. Assuming the economy doesn't get destroyed and wiped out and, you know, banged up and, and the nightmare scenarios, it takes a dozen years to do it so that the boomers will, will basically be be tortured to death in their, in their final years. So, so that's what I watch. My question I have is who's driving the cab right now, Iran, China or us? Israel. It looks my, my completely uneducated guess is that Iran, China have total control of the story. Simon, is that right? Simon?
- [85:09]
Simon Dixon
I completely agree with that, but also I'd add another dimension to that which I always. I've said America is not a sovereign state. It is controlled by complexes. And so the financial industrial complex is partnering with the Gulf sovereign wealth funds. And China normalized between Iran and Saudi Arabia. And so Iran, China, brics, I believe they're executing an expulsion from The US from the region and the China meeting was really a check in between the FIC and China. And so it's not really us. And tying the conversations together, US is the stock market. Capitalism is dead, there's no doubt about it. Because the number one contributing factor to whether this market continues is, is really three things. But one overarching, which is money printing. In order to fix the bond market, the only thing you can do to get those yields down so that you don't crash the real estate market, which also breaks banking, is for the Fed to buy those, to buy those bonds. And so it looks like the, whatever, the Kevin Wash effect, let's say. I'm really confused as to what he will end up doing. I think I know what he's going to end up doing, but it's the opposite of what's being said, which is that you get those short term rates down, the Fed expands the balance sheet and you need a few things in order to do that. So the stock market is really a function of money printing. So the balance sheet has to expand. Maybe you could do it some covert way where you do some regulatory reform and the banks expand their balance sheet and you have to compensate them with new lax liquidity requirements or reserve requirements. Maybe there's a way of doing it that way. The second thing is ETF inclusion and index inclusion. And so they're changing the rules. They're saying now if you do a trillion dollar IPO, you can be included in the index from day one. And so now Goldman Sachs is trying to rush out 3 trillion dollar IPOs, OpenAI, Anthropic and SpaceX. And so you really see the narrative lining up. The third thing is just media manipulation of narrative. And what we're really leading up to is a national security that if we do not figure out how to get data centers on space in order to control the world through AI and robotics, then China will take over the empire and communism will win. And so all of the podcasts, all of the VC bros, all of the tech executives, they're all pushing that the solution to America dominating the world is to get data centers in space and power artificial intelligence so that we can, so that the AI arms race really is one. And so they're doing, really pushing out that. And that kind of coincides with these elaborate valuation trillion dollar IPOs that from day one will be included in the indexes. Just so like Larry Fink said, the pensioners that are buying these s and P ETFs and just are passively investing can really bootstrap the price. So the banks like SoftBank that have got about a $60 billion leverage position in OpenAI is able to dump into this liquidity and then they can open up the private credit markets and lead to a big money printing exercise which will be justified under energy. There's an energy crisis which powers this AI. So we've got all the LNG and we've got this. We need to win the national security arms race that can justify a really big money printing exercise. And really they can just sacrifice the world, the dollar as world reserve currency and we can move into an inflation recycle. And Scott Walsh has already, not Scott Walsh, sorry, Kevin Walsh has already indicated that what he's a Freudian slip, by the way.
- [89:34]
Dave Cullen
That was a Freudian slip right there.
- [89:37]
Interviewer
Fed and treasury merged.
- [89:39]
Dave Cullen
Yes, it was, wasn't it?
- [89:42]
Simon Dixon
It definitely was. But he's already indicated, he's already indicated we just need to change the, how we measure inflation and what we'll be using. So we're getting the old trick, you know, Americans, the average American that is broke right now, that is on the poverty line, he's going to be paying more for his mortgages, his debt, credit card rates are going up, food is food, inflation and energy prices are going up. That's basically everything that they can afford is going up. So they're really driving the K shaped
- [90:20]
Dave Cullen
economy too, which they can't afford it, which they can't afford either because, because credit card debt has grown something like 9% a year for the last three years. And as Stephanie Pomboy says, they're not buying more units of anything, they are buying 9% more of the same number of units. And so, so, so the consumer in the, in the Michigan consumer confidence numbers and one of the twos at an all time low. I think it's that one. But, but labor force participation's at a terribly low state too. So the, the jobs numbers are baloney. The claim. I, I hesitate to say this, Mike Green will be lurking out there, but I think inflation is way worse than they're telling us. Mike is arguing that that's a conspiracy theory. I think Mike's brilliant, but I don't agree with that part. And, and I still cling to the idea that for 15 years Warsh has been talking about the absurdity of Fed policy. I have trouble imagining that that was just a limited hangout. Now he's just going to do like all the other. And what really bothers me are the guys who for the last 15 years have said we kept rates too low, too, too long. And I always add to that too many times. And then to that I now add, and you want to do it again. You sound like a, that just makes no sense. I, I, my, my optimistic doom loop is that Warsh is here to blow up the system.
- [92:05]
Simon Dixon
Yeah, well, if the Fed believes in capitalism, then blow up the system. The Fed doesn't believe in capitalism. I think it's managing capital outflows for transnational capital and trying to build a post dollar dominated world. And so that involves asset stripping right till the end, until the banks won't accept treasury as collateral. And at the moment everything's saying that the banks are still going to accept Treasuries as collateral. All the foreign central banks, they're not accepting it, they're going into gold. Even India right now is telling its people, please stop buying gold with the rupee while the Indian central bank is buying gold and printing rupees. And so central banks don't believe the story. The Fed seems to continue to this. So have we got a genuine regime change at the Fed? I don't know, but buckle up if he's ready to kill this AI and IPO market there is.
- [93:19]
Dave Cullen
So where's the capital going to? You talked about the passive flows, but passive flows aren't adequate to absorb $3 trillion IPOs.
- [93:29]
Simon Dixon
No, which is why I think you got to pump the, you know, the, the narrative that this is AI for national security and we need to get data centers on the moon in order to power, you know, this. And, and it kind of ties as well with the Iran operation. Imagine you have a very, you know, you have a very symbolic moment, a bit like the British Empire's moment with the Suez Canal, but you get it with the straight of Hormuz. And you also have the narrative that by the way, it was AI powered drones and ballistic missiles that by the way, we're dependent upon China for the components. America can't produce them without China, which kind of shows that we're not going to World War Three. But you get a bit of, yeah, the only way to deal with this is to print an exorbitant amount of money, increase the Fed balance sheet or figure out how the banks do it and just keep pumping the K shaped economy. I just can't see any situation in which they give up and return to capitalism unless gravity tells them that they've got no choice anymore.
- [94:43]
Dave Cullen
I just had this image of, of China launching missiles and blowing up data centers on the moon.
- [94:54]
Simon Dixon
I have, I have space wars is definitely the next, the next.
- [94:58]
Dave Cullen
Well, you know, there's already enough craters. You know, what's another couple of craters on the moon? It's curious.
- [95:07]
Simon Dixon
Big money printing you can justify. Right there, Dave.
- [95:11]
Dave Cullen
That's exactly right. For many years I've actually said that if you think the Fed works for the United States, you're dreaming. The Fed works for multinational banks which have no sovereign ties whatsoever. So this is like we've gone full. Nathan Rothschild. Right. We've really crossed the Rubicon. This is. I'm just gonna. Here's what I keep next to my desk. It's a, that's a box cutter for slicing my wrist or hijacking a plane. I don't know. One of the two.
- [95:51]
Interviewer
Well, quickly, Simon, in that, in that framework, I'm trying to think of the reason, is it possible that part of the reason they have to push for this trillion dollar valuation to get it into the index is to get those passive flows, is to have the, the acceptable narrative that the public would, would take. Right. If basically, if the public starts holding those positions as part of their. And things start going to hell in a hand basket, then not only the military side, but they can justify propping them up for military reasons and everybody feels like it's part of their actual savings. So they're fine with it and they're okay with the money printing going forward.
- [96:24]
Simon Dixon
Yeah, I mean, you know, but that, that has been the boomer story, right? It is. There is a small class of Americans that the money printer is serving, which is those that got on the real estate ladder and those that had the 401k for several decades and are coming to retirement. And so at what point are they going to rug pull them or are they just going to think about. You saw what Nvidia was doing. So Nvidia is now past the $6 trillion valuation. In order to facilitate that, Trump was trying to enforce chip sales onto China. China came back and said, for national security, we prohibit any of our companies buying Nvidia chips. But you still got the pump in the market. And then it didn't correct to the, you know, to the same degree. Then they came out and said, right, we're going to take $85 billion and do share buybacks. And so they're attracting, they're speaking to the growth investor, trying to get more of their money. Now S and P is approaching the Magnificent Seven, controlling almost 50% of the
- [97:38]
Dave Cullen
S and P. So let me see, the share buyback is because their shares are so cheap that they should buy back their shares. That's the Peter lynch model. It doesn't seem to fit in the modern era. Just hasn't for two decades or three decades. But just had to insert that.
- [97:56]
Simon Dixon
Yeah, well it's not, I think Dave, you're still in analyzing real world fundamentals.
- [98:03]
Dave Cullen
I'm analog.
- [98:06]
Simon Dixon
This is just pumpamentals or whatever we want to call it. And so the 85 billion isn't about investing in value for Nvidia, it's about attracting growth investors. So the tech Bros that have sold their bitcoin, sold their crypto and are now trading these, these IPOs as part of a gambling portfolio because they're trying to, you know, fit in the world today on Robinhood or whatever, but it also attracts the big growth money. It also what they did is they increased their dividend per share from $0.01 to $0.25. And so now they're trying to get Coca Cola investors and your Berkshire Hathaway style investor thinking that this isn't only tech, this isn't only growth, this isn't only national security, this isn't only geopolitical significance with Fed money printing, it's also a dividend stock as well. And so Nvidia is doing every trick to attract every single investor because people are going to be selling their Nvidia in order to buy into these IPOs and they've still got the circle jerk of selling contracts to each other and the revenue that they're selling. I mean these IPOs are selling revenue forward of about five years of the biggest growth story of a projected story that every single enterprise in the world is going to be adjusting and buying tokens of AI. The valuations are horrific. Yeah, they're incredible.
- [99:44]
Interviewer
They're absolutely off the charts. I'm curious Dave, your thoughts actually on that too with the basically the hyperscalers investing in the chip manufacturers, investing in the, the AI companies and the money just going round and round and being marked as, as revenue on their, their balance sheet. I think I saw that like, and I think it's anthropics and. Or Is it open AIs? One of them was similar valuations to Samsung, but like a fraction of the revenue actually coming in. So Dave, what are your thoughts on the AI circle jerk going on right now?
- [100:12]
Dave Cullen
You know the metaphor I've liked for the last couple of months is the ping pong balls and the mousetraps in the big container and it's a stable system and then they throw in one ping pong ball and they all start flying all over the room. And so I have this religious level faith that capitalism is not dead, it's just in an induced coma and that price discovery will be resurrected. And that I know of no way to document in history, except for if you want to include the present of something that got way overvalued, that didn't find its way back to dirt cheap. And so as a consequence, I think we could write a textbook for the next boom bust book that describes this era and how completely idiotic it was. And so I really, I think everything you describe makes total sense to me. The one thing that I can't accept is that it'll work, right? I think that's right. So I think this is a patient with stage four cancer of the liver and they're going to faith healers in Indonesia and stuff to try to figure out how to cure their problem when in fact it's time to put your affairs in order. And what bothers the shit out of me is the time variable. And so crashes do nothing. They absolutely do nothing. Because dip buyers have so much muscle memory for the last four decades it's always paid to buy the dips and so they can be depended on coming in to buy the dips, especially if the feds are buying call options and forcing gamma squeezes and things like that. But I believe at some point it's just all four engines are on fire. You're at 35,000ft and we're now saying, well, let's take it to 45,000ft. And as they say in the manual, flight manual, it says you will have enough gaps to get to the crash site. And I think the crash site will be a multi decade bear market. But it's consistent with the idea of pushing the United States out of the Middle east, of pushing the United States into a secondary status compared to its current status. And whether that's all intentional, I can't fathom. But if you want to know what you can't fathom, read Kathy o' Brien's book Transformation that makes all this look really very normal and realistic. Kathy o' Brien's book on MK Ultra will blow your brains out your ears. And I've somehow got to find out if this is true. It seems like we're in the Kathy o' Brien transformation phase of capital capitalism. So I've kind of lost my mind at this point. I was too bearish. And I wasn't too bearish in 08 09. I had tons of cash. I actually, I don't even know if I lost money during that particular bear market at all. I mean, I actually there might have been one year, little diploma. I've never ridden anything down hard, never in my life. If I had big exposure to one of the big drawdowns. I've never lost 50% on my equities or anything because I was out in 99. I was very underexposed in 07. And I do worry at some point karma is going to get me and find a way to, to make me ride a 50% or more downswing, even though I'm invested for the dystopian post apocalyptic world.
- [104:24]
Interviewer
Dave, what do you think could drive us into a new bear market? It would be just we can't sustain the valuations based on continuing capital kind of coming in. Or would it be something like the large tech players in the space aren't actually buying the services of these giant AI IPOs.
- [104:41]
Dave Cullen
It kind of falls off. Favorite metaphor, my favorite metaphor. Richard Russell, when asked, why can't this keep going? He said, go into your child's room and start stacking blocks and keep stacking them and keep stacking them. At some point the stack gets so high that it becomes so shock sensitive that it takes the butterfly flapping its wings on the other side of the world to trigger someone downstairs slamming a door. You know, something like that. And all of a sudden, boom. The piles, a big pile of rubble on the floor. We went from instability or metastability to stability in a heartbeat. Now markets have a way of dragging that out over time. Nikkei. Think of the Nikkei, right, the Nikkei. If you, if you started buy, if you own the Nikan 89, you're still toast. You're completely toast. You've fried the last 35 years of your life.
- [105:44]
Interviewer
Well, you're nominally par now, aren't you? Is that about where we are?
- [105:47]
Dave Cullen
Nominally at par. Which means you're not. And you also burnt 35 years staying nominally at par, right? So you're now a very old man and you spent all your capital because you didn't get any gain.
- [105:57]
Simon Dixon
But if you are throughout the AI trade, right, Nathan?
- [106:01]
Interviewer
Yeah, it's a little bit rough. We're not going to pick in the
- [106:07]
Dave Cullen
best guys when they're struggling. I am not going to shit on them and they're welcome to berate me for not owning it when it's soaring, that's fine. But I'm not going to beat on you when it's struggling and gold's struggling right now. But if you were a brand new graduate of Tokyo University in 1989, and you started averaging in a passive flow way into the Nikkei. You broke even in 20 years. You spent 20 years breaking even, having zero exposure in 1989, just starting. And as a consequence, that shows you that I believe that markets can become uninvestable, just uninvestable. There will be winners statistically, stochastically, someone will win. And we'll declare that. Remember, Bill Miller beat the s and P 13 years in a row. He said, oh, he's just such a genius. The 14th year he gave back all his net gains because he held the banks going into 0809. So statistically speaking, there's going to be a Warren Buffett. Statistically speaking, there's going to be the other guy who we don't ever read about because he's dead. And I believe that'll happen. I just don't know what the trigger will be, in part because if it takes a butterfly flapping its way, wings, I'm not going to be watching butterflies. Right. I'm just going to wait until some angry Tunisian lights himself on fire and starts Arab Spring. Right? Yeah. One guy, one, and one highly flammable Tunisian started Arab Spring.
- [107:52]
Simon Dixon
That's right.
- [107:55]
Dave Cullen
So that's my optimistic view, my pessimistic view is it's not going to happen. I'm going to go to my grave waiting. Yeah.
- [108:04]
Interviewer
The kind of meltdown scenario.
- [108:06]
Dave Cullen
Market. I'm not buying this market, period. Period.
- [108:10]
Simon Dixon
Yeah. So I can think of, nay, I can think. There's. There's three things I'm watching that could blow it up. The first is the bond market. The bond market is the real stress. Like, yeah, the, you know, you got UK at about 6%. You've got real stress as a result of the closure of the strait. I mean, while America's complaining about inflation, Europe and UK have a real growth issue. There's no vision. They've got a debt issue. They're more likely to need an IMF bailout than anyone in the countries that are, you know, impacted by food insecurity. All of the other components that were meant to come out of the straight, you know, they, they had to sell, you know, a lot of them had to sell their Treasuries in order to be able to pay for these inflated prices for the commodities and oil and energy that they needed. And then they had to negotiate through, you know, the black, the black routes of how to get, you know, to get these components via Iran, uae, Hong Kong, China. And so that started to lead to a lot of treasury selling, which pushed out the bond yields and you know, we then started to see the more developed countries that were impacted like uae. Say you get an FX swap line, just don't sell your bonds, don't sell your equities, please don't sell. We'll give you, put some currency here and you can print the dollars, we'll give you the dollars, just don't sell the Treasuries. So there's that game and there's only really three institutions that I think there's four of them. There's the bank for International Settlements, there's the Federal Reserve bank, there's the bank of Japan and there's the People's bank of China that really control whether banks still continue to use U.S. treasuries as collateral. So the moment those institutions decide which is fully in the hands of transnational capital, then they have the tools to engineer a rug pull. That's the bomb.
- [110:34]
Dave Cullen
Haven't they shown evidence they've made that decision?
- [110:38]
Simon Dixon
I think.
- [110:40]
Dave Cullen
Aren't they selling?
- [110:42]
Simon Dixon
The central banks are selling but they're engineering that everyone else is the buyers. And so when they're managing other people's money, the sovereign wealth funds are selling. They're buying equities instead of bonds, the central banks are buying gold instead of Treasuries. And then in the US side they're just trying to engineer. So there's still demand whether it's borrowing from Japan, whether it's a basis trade in Cayman island, whether it's launching stablecoins to try and subsidize whatever they can do. So Americans are going to be the bag holders. There's no two ways about it. But I think they're trying to do a managed transition which is use the pump of the US economy to get better terms into a multipolar world.
- [111:36]
Dave Cullen
So that's, but the US economy sucks though. US economy sucks compared to what they say, right?
- [111:43]
Simon Dixon
Oh, I completely agree with that. I mean there is zero reality between stock markets and economies today. I mean even, even the London Stock Exchange is at near all time highs and the economy is a disaster.
- [111:56]
Dave Cullen
Look at what the DAX did over a period where Germany self destructed. They might as well just, you know, they might as well just swallow, you know, Drano and, and, and, and, but Germany couldn't have done a better job at destroying the most important economy in Europe. Yeah, and, and, and, and yet the DAC sword.
- [112:18]
Simon Dixon
Yeah, and, and had something to do with the CIA blowing up Nordstream pipeline as well. Something black rock.
- [112:25]
Dave Cullen
They also got rid of all their other power Sources and everything. Right. They're, they're now digging peeps, they're discovering mummies and peat bogs again. Right. I mean they're, they're, they're just, they're just, they got nothing.
- [112:38]
Simon Dixon
Yeah. There's only one way to explain it and that is that politicians are installed in order to serve transnational capital. There's no way politicians are that dumb or you know, they're just puppets for, for a transnational agenda.
- [112:53]
Dave Cullen
If an organic chemist in Ithaca can figure this out, the guys at the top can figure this out.
- [112:59]
Simon Dixon
Yeah. In the stock market there is, there's another. So I put it in the commodity market, that's the bond market one in the stock market. The reality is is that the real valuation of the AI trade is happening in China. So Deep Seek just raised at 45 billion valuation while OpenAI is trying to raise a like 900 billion and they can do 90% at 10, 10% of the cost. And they've got all the energy, they've got the solar, the EVs, the batteries, the rare earth minerals. So, so there is a structural rug pull of the deep seat moment in the stock market that China could, could pull at the moment that they wanted to. But I think they want to get all the capex expenditure they want to raise at these inflated valuations. They've got the energy crisis, big oil, Big LNG are crushing it at the expense of the American people. And so I think there is a setup there if they wanted to rug pull the stock market.
- [114:09]
Dave Cullen
This reminds me by the way of when AOL sold to Time Warner in which Steve Case was criticized because he sold this fantastic wealth generating cash machine to a fuddy duddy old company, Time Warner when in fact Steve Case was saying look, let's get something concrete for these fake chits that we've got here. Other companies tried to do it and there was shareholder revolts because they wanted to hang on to Yahoo and things like that. And so it's the same sort of story by the sounds of it where they're trying to keep their valuations up just so that they can maybe get some hard assets in place of fake assets.
- [114:58]
Simon Dixon
Yeah. And I think that story is still playing out because the remnants of that was SoftBank and Long Term Capital Management.
- [115:05]
Dave Cullen
And SoftBank blows my circuits. Every time I think SoftBank is going to die, it comes back like a zombie.
- [115:12]
Simon Dixon
They've gone all in an OpenAI. So watch the AI trade. They got 60 billion leverage investment and they're selling everything to they, they took like they sold their 21 capital Jack Mallor's Bitcoin treasury company at a $250 million loss in order to get more open AI on the secondaries. So they're going all in. And you know, what is it that they know? Is this an engineered blow up the Japan trade or is this something that they know that's going to be leading into a pump and dump cycle? I'm, I'm, I have no idea.
- [115:54]
Dave Cullen
A question I asked in a zero hedge debate as a so called moderator. I'm not a very good moderator to the extent moderators are supposed to shut their fucking mouths. But, but I asked why did the yen carry trade not blow up the world? What's your answer to that?
- [116:15]
Simon Dixon
Because the bank of Japan and the Fed figured out how to engineer the continuation in the K shaped economy and hide it all in Cayman Islands with the basis trade and lever it up and we still have not unwound that trade. So it is still going.
- [116:32]
Dave Cullen
They are so it simply doesn't. It's like the Sixth sense. He doesn't know he's dead.
- [116:39]
Simon Dixon
Yeah, yeah. And that kind of.
- [116:41]
Dave Cullen
I'm a metaphor guy.
- [116:42]
Simon Dixon
I'm a metaphor guy as well.
- [116:45]
Dave Cullen
That's a simile. But yeah, there's a, there's a third
- [116:50]
Simon Dixon
market where you could rug pull it. And by the way you could rug pull all these simultaneously if there was really a 19.
- [116:57]
Dave Cullen
Oh, I think they will see that's the ping pong ball model. Yeah, I think once the dominoes start falling they'll be putting out fires all over the planet.
- [117:09]
Simon Dixon
Yeah, right.
- [117:09]
Dave Cullen
This is, this is, and this looks way worse than 07. I told my class in March of 07 the banking system was about to collapse. I really did tell them that on March of 07 I stood up and I have this tendency to do Tourette's like outbursts to the class including F bombs. And I turned to him and I just said out of the blue the banking system's about to collapse. And then the story that I just love to tell is two years later I had the same group in a seniors honor thesis class. The first day I said so this is February of 09 now. And I said didn't I tell you the banking system was going to collapse? They said yes. I said did your econ professor say that? And they said no. And I said what are those assholes paid for? And then my first guest lecturer, because there are a lot of guest lectures in this course was the former CEO of Morgan Stanley bank who had cut his teeth on mortgage backed securities and he spent two hours talking to class about the complete carnage of the GFC.
- [118:16]
Simon Dixon
Yeah. And we still got $2 trillion of Larry Fink's mortgage backed securities on the Fed's balance sheet. They're still there.
- [118:23]
Dave Cullen
That's truly unbelievable. Yeah. Why they don't dock from. My dog had diabetes, almost died from toxic shock or something. Why the banking system should get the same damn thing.
- [118:36]
Simon Dixon
Yeah.
- [118:37]
Interviewer
Simon, what was the third element? I think I missed it there. We had the bonds and then we had the deep seek attack on the equities. And then there was the third risk that Dave was saying that all could go off at the same time. And the other thing I just want to make sure I get in there to come back perhaps afterwards is with treasure. Sorry. With Turkey selling off all of their Treasuries and gold, my immediate thought was the risk of wouldn't treasury selling beget treasury selling. As cost of capital goes up, I would imagine you have more inflation around the world, they need to sell off more Treasuries and it just gets into a vicious cycle.
- [119:07]
Simon Dixon
Yeah, those two are related. Actually. The third market is if you look at the gold market and we saw it in silver and you can go down to more and more commodities as well. But I mainly focus on gold. London is clearly drinking. Yeah, yeah, you said London. London has clearly issued many, many, many times more derivatives contracts. And gold they can settle. And if you look at all of these flows, there's currency wars. Like with Turkey, which has been a long term target of these London currency wars. They had to sell all their US Treasuries and all their gold, but it all ends up in Shanghai. And there was an announcement this week as well where Hong Kong is now allowing for these, you know, unbacked gold contracts for the first time to happen via the Hong Kong gold corridors. And with uae, which is the other most important one you have, the most important corridors are Switzerland, Hong Kong, uae. And what am I missing? Singapore. Switzerland and Singapore. Yeah, you're right. So we're starting to see more and more, but the outflow of gold from the west over to Shanghai right now. And we all know that Shanghai doesn't have these derivative contracts, so they don't have to settle this gold. So if they wanted to engineer a similar event like we saw before Christmas with the squeeze on silver and then that still exists, the Western gold derivative market is propped up by the lender of last resort being the central bank willing to lend and people accepting ETFs instead of physical gold that's hiding all of that mess. That mess still exists. But Shanghai has the gold and it doesn't have the derivative contract. So you've literally got a stock rug pull from China, a bond rug pull from China, and a commodity rug pull from China the moment.
- [121:27]
Dave Cullen
And Chinese citizens own a lot of gold now. China's drawn gold into China through private investment too. Yeah. Why is gold doing what it's doing? It seems to just be hovering. What are the two equal and opposite forces acting on gold right now?
- [121:55]
Simon Dixon
Well, I mean, I still think it's the derivative complex and the market, not the central banks are loading up on gold, but any managed funds, they're dumping the Treasuries. They're still playing into the returns that they need on the stocks, and they're still pushing people into Treasuries. And so I just think the people in the know are accumulating. But it's a very patient trade. It's designed to drain people that aren't patient. Is a bit like what we're going through in the bitcoin space right now. There is, you know, massive, you know, ever since blackrock, Jane street and strategy and all the Wall street players came in, you know, they're just trying to centralize as much bitcoin as possible. And they're using these paper contracts in order to try and get get the bitcoin in, you know, in the hands of the people in the know that are the same people that are able to manage a transition. And their trade has always been the same thing is patient capital relative to impatient retail and also the ability to control institutional money. Right now, look at if you want any institutional investor that wants to scenario plan any event, we're talking a pension fund, we're talking a sovereign wealth fund, we're talking an endowment fund. They're all using BlackRock's Aladdin technology. And so if BlackRock pushes out the data, for example, how do I scenario plan for the straight of Hormuz and what allocations of capital should I have? They're all pushing capital in the same direction because they're all using the same technology in order to build out their models. And so BlackRock has significant ability to control these markets, which is why, you know, we don't have pricing doesn't exist. It is all institutional and centralized control.
- [124:04]
Dave Cullen
Not good for the long run. Yeah. When. Let me ask you this. Seemingly my questions could get dumber faster than you can answer the questions. How did Goldman lose supremacy to BlackRock?
- [124:26]
Simon Dixon
So Goldman's is still Vastly important in the investment banking era. But with the birth of ETFs the asset managers I think became, I call them a complex for a reason because you need to securitize everything. But BlackRock controlled the capital and so they got the contract with the Federal reserve during the 2008 crisis to manage their own mortgage backed securities and which companies would go bust and they bought, they managed to get a leverage purchase of all the ETFs from London from Barclays and so they seem to have been the net beneficiary alongside JP Morgan of the 2008 crisis. During the COVID time treasury got the contract to use Aladdin for all the Stimmy checks. And so it was really, I think they were given the superior artificial intelligence technology in a public private partnership and they became the lead node in the asset management industry. Now JP Morgan is still far and away the most important in the commercial banking. Goldman still I think is vastly important, important in securitization. But it seems like did they get
- [125:56]
Dave Cullen
neutered by becoming a bank?
- [125:59]
Simon Dixon
Yeah, well Goldman, you know, kind of just in order to get their money said we're a retail bank, we're not an investment bank now.
- [126:05]
Dave Cullen
Right. Did that therefore take them out of the top dog spot? Was that a neutering to survive?
- [126:13]
Simon Dixon
I think it was just the general trend of asset management becoming more important because if you think about it, the old financial weapon of mass destruction was always currency wars which was always FX dominated. In London UK the new tool is ETFs and so if you want to really control like you know, it's index fund inclusion and in a multipolar world they're managing the flows of capital via ETF flows and blackrock dominates that game. They dominate ETF more than anyone. And I think ETF has become more important for managing global flows of capital than the orthodox currency. War allows you to destroy an economy like Turkey like they did in Iran. But it's when you negotiate the ETF flows that you really get the value and so that you know, they've gone since the closure of the strait of Hormuz Blackrock's gone from 12 trillion to 14 trillion and now they've got 25 trillion of people, you know, of funds using their technology. That one, two punch I think has just given them an extremely. And remember the asset manager also controls the bank because the banks are public companies so they're the number one shareholder in everything underneath them.
- [127:44]
Dave Cullen
Here's an extraordinary stat. In ten years JP Morgan is up sixfold. That's not a stuffy old bank that's not nine to three bankers hours performance on the stock market. I mean there's a million stories like that. I think Intel's up 200% since April 1st or something crazy like that. This is not price discovery by any stretch of the imagination. Right. This is what's so frustrating to me now. Did you have to pick up an article that. Actually I picked up in a secondary response in a tweet and I think it's been long since forgotten. Otherwise, Buffett wrote an article in 77 talking about in detail how inflation destroys equity returns. And you got, you got to read it. I'll send it to you if you can't find it. But it's a 1977 article that got republished by Barron's or Forbes, Forbes I think in 2011. And he goes through the detailed analysis of what inflation does to equity returns and why. And there's some real subtleties that I can't even reiterate. But I was left, I was left first of all stunned by the fact that this, this write up is of a kind that I haven't read coming out of Wall street for years. It's just Wall Street's filled with bullshit jargon about, about liquidity flows and stuff like that. And it's not jargon because it's real. But it's not about cash returns, it's not about cash flow due to wealth creation. It's not about, it's, it's not about capitalism. Everything is some technical analysis term. And again, it frustrates me because I want to be able to invest in a rational world. And this is, there's no rational world. And maybe over in Indonesia there's a rational price discovery going on, but I'm not qualified to do that.
- [129:55]
Simon Dixon
Yeah, well, you know, we've got to get to the roots of, underneath all of this is a Ponzi scheme and the central banking system is a Ponzi. So you know, when you build upon a foundation of in order to have a dollar, you have to lend a dollar and there is interest to pay on top of that dollar, but the interest doesn't exist, then fundamentally it only takes you to where we are. And it's just maths at that stage that you have to find a new way of rolling over the Ponzi, which means get the consumers to take on more debt, securitize and get the businesses to take on more debt and if all goes wrong, get the government to take on more debt through war. And then if all goes wrong, put it on the Fed's balance sheet. And remember who the shareholders of the Fed are. It's the banks that get to create the dollar and also have the asset managers that are taking all of your money and investing in the products that they're creating that Goldman's create. So they've got every ounce of this. And the reason JP Morgan can 6x is because Central banking is a centralizing force. And so America prior to it was a state banking system prior to central banking. And that's still what you have in China. And state banking means you have thousands of banks that know that you've got to lend to productive means, not consumption with local knowledge, with local relationships, with local business. And as long as your credit creation goes to local business with local knowledge, then you can have assets that outperformance the interest. But if the money goes towards consumption on credit cards, war or unproductive means. Hitler learned that lesson. He learned that lesson. You end up with a Volmar Republic. You change it by issuing currency for productive means backed by labor. And then the moment you start spending it on war and destruction of things, you end up destroying the currency. And then an external central bank can come along, issue a currency war, and the wealth inequality gets so bad that you end up with the rich and the poor hating each other. And that's the situation we're in right now. But China's still got that state banking system. So maybe there's the sanity. But they won't let you in because they don't want anyone else in, because they don't want, you know, they want to do it for their own insular economy because they had 100 years of humiliation. Currency wars, civil wars, and they know drug wars.
- [132:46]
Dave Cullen
Drug wars, yeah. I got an argument. I think it was with Kennedy. It's either Stanford or Berkeley, and I think it's Kennedy in which I made the argument that the Great depression ended in 45, not 1940, 41, that World War II didn't end it. And I made the argument, you know, there was, you know, limited consumption. And you know, and he said, well, you know, that story's overstated. And the GDP grew by X percent over the war years. And I waited about 10 years before I challenged him again and I said GDP really should include a depreciation rate. So the guy who builds a. The guy, if I give you 20 bucks and you buy a souffle, that's not the same as if I give you 20 bucks and you buy a tool that you can use to fix things. The guy who creates the DeWalt drill created a lot more wealth than the guy who created the ribeye at your local restaurant that has a life expectancy of around 15 minutes. And I made the argument that during World War II, all that GDP were things that had a life expectancy of microseconds once they were dropped on the ground, and that the entire GDP was the war. And the only thing I would concede to him was that one of the things that we did retain was we got better at the Henry Ford mass production model. We got way, way. So at the end of the war we knew how to make in volume, but all the shit we made was crap because we all got blown up and sunk. And we lost something like 65,000 pilots and training sessions for World War II. There's some absurd losses in World War II, we gave tons to the Russians, so our GDP was totally false. We also went deeply into debt, as you know, and so we pulled consumption forward too. I just don't see where what we're creating now is that much is wealth. One of the arguments I made, and then I recently heard someone else make it, and I was finally satisfied, I said healthcare should not be in the GDP because healthcare really now, modern healthcare really reflects the tremendous costs and burden of keeping a rapidly depreciating asset. What we call the boomers on the street, like a 15 year old Corvair, where it's in the shop all the time and all those parts you're paying for and all those repairs, that's not wealth creation because if it wasn't breaking down, you'd be richer. Right. So it's a Bastiat broken window argument. And so the boomers are contributing huge amounts to the numerical GDP while at the same time sucking the system dry and that we should all just be euthanized. And I had this funny experience exchange with Milo Yiannopoulos of all people. Right, That's a throwback. There's a throwback. And he said, you're a traitor to your generation. Which at first I thought, he's insulting me. And then he said, you might survive the purge in which we kill all the boomers. And I thought about it, I said, oh, I think he's actually being supportive. And my response to him was, I said, you know, I'm really thrilled to hear that. I was kind of counting on surviving that purge. Yeah, but the boomers all dying off would, would really save us a ton of money.
- [136:54]
Simon Dixon
Well, if you took out healthcare, yeah, but, but, but it's GDP at The end of the day.
- [137:00]
Dave Cullen
Right.
- [137:00]
Simon Dixon
So I don't.
- [137:01]
Dave Cullen
Now see, I don't buy is gdp not numerically.
- [137:05]
Simon Dixon
Yeah.
- [137:05]
Dave Cullen
But it's not wealth creation.
- [137:07]
Simon Dixon
Oh, completely agree with that. But that's the right.
- [137:10]
Dave Cullen
Well, gross domestic product. I put a capital P on product, right.
- [137:15]
Simon Dixon
Yeah.
- [137:16]
Dave Cullen
It's not supposed to be a money velocity.
- [137:18]
Simon Dixon
You are the product in case I am the product. And hence why even right now you look at the closure of the straight of a moose and you see why is it that a bunch of countries that have the largest deserts could create food insecurity in the countries that can grow the most amount of food and vegetables that have the richest land? And then you realize it's petrochemicals. And then you realize that if we have to create petrochemicals in order to eat in countries that are now going through food insecurity because they can't get those fertilizers and petrochemicals, and that it was Rockefeller that created that whole. It makes a lot of sense why we're poisoning people and our food is so bad and that we consider healthcare as GDP because it's just a scam. Like it's, you know, going to therapists, going to continually subscribe. And. And then that also explains the war economy as well because you're, you're quite right that the biggest gift that World War II that the Brits ended up hosting in US was the World bank and the IMF. And the World bank and the IMF said, yeah, you got the manufacturing base. Yeah, you didn't get blown up. So let's export dollars all around the world and let's decouple it from gold. And if we can get everybody into dollar debt, then we can just blow up their countries, regime change him and come get Halliburton and all of our companies to come back and build back better. And so that was the origins of the model. If you read a book like Confessions of an Economic Hitman.
- [139:16]
Dave Cullen
I didn't finish that book. Not because I didn't buy the model. I didn't finish because I didn't buy. I didn't buy the story that the guy, John, what's his name? Perkins. Yep.
- [139:30]
Interviewer
John Perkins. Yep.
- [139:31]
Dave Cullen
I didn't buy the fact that he was, that he was central. I get the feeling he was telling a story that he did not participate in.
- [139:41]
Simon Dixon
Okay.
- [139:42]
Dave Cullen
And so I thought he was a poser, which is why I didn't finish the book.
- [139:49]
Simon Dixon
Yeah.
- [139:49]
Dave Cullen
But I do know the story. I do know the story. I've read enough books on the CIA and MKUltra and everything to totally, totally get swallowed by the basic. I just finished a Family of secrets about the Bushes. That's a nasty story in its own right.
- [140:04]
Simon Dixon
Oh, the Bushes. Yeah, I mean, you know, the Bushes, you know, they. After the assassination of King Faisal and the transition to the petrodollar that's now being deconstructed, the Bushes joined the Safari club. And the Safari club was the intelligence network between France, uk, Saudi, CIA and various other interests in the Middle East. And they. The ones that groomed Osama bin Laden as a CIA asset. And it was George Bush was the one that set up that group in order to create the narrative that's needed for all the wars in order to. And as the Bush family were prolific in their oil interests and their grooming and anyone that's actually studied 911 reaches the conclusion that there was a joint operation between Saudi intelligence, Mossad and CIA, and it provided.
- [141:15]
Dave Cullen
And who did what is the vague part. The part we don't have a good read on is who did what. Right. So we don't know. You know, the dancing Israelis means Israel knew. The Israeli art students inside the towers suggest Israel was involved. But the Saudis were in the planes. But those guys apparently died and we,
- [141:43]
Simon Dixon
and one of them was also a massage agent as well.
- [141:46]
Dave Cullen
And one of them was also a Mossad agent. Yeah, I, I, when I only, I, I mentioned Kathy O' Brien's book, she's an MKUltra sex slave. And, and I'd seen so many podcasts, but the book does this amazing job of pulling it all together into one big cohesive narrative. And I've actually kept a running list of all the famous people who are pedophilic, perverts, satanic, you know, brutal bastards.
- [142:17]
Simon Dixon
You got Jimmy Savile on the list?
- [142:19]
Dave Cullen
Well, Jimmy's not even on the list. Although Jimmy would be on the list if it wasn't a US centric program. Jimmy Savile. This story can go on forever. No, but, but it. Dick Cheney, George Bush Sr. Ronald Reagan, George Bush Jr. Arlen Specter. And it goes on and on. Governors and mayors and presidents of countries. And you have to conclude one of two things. Reading her book, you have to conclude that she's completely psychotic and is lying from head to toe or that this upper elite is really, is really like, you know, nine foot, you know, zombies running the world. They're just, they're just. And I, I believe that she's telling the truth and that these people are evil, that she tells a story of Hillary going down at her and, and, and, and Bill walks in the room and Hillary pulls her face up and says something about a meeting. She says, well, how's the meeting go? And Bill doesn't even flinch, you know, and just stories like that. But apparently Dick Cheney was well endowed and beyond brutal with his weapon of choice. Senator Robert Byrd was truly an extraordinarily evil bastard, not to mention he was a grand wizard of the KKK and shit like that. So the book Transformation, I recommend people read it, but only if you've already started to ponder this shit. Because if you go, if you go into the steep end of the pool with a virgin head, you're not going to make it 10 pages in before you quit.
- [144:09]
Simon Dixon
Yeah.
- [144:09]
Interviewer
Actually on that note, Dave, I want to ask you something because I'm curious your read on this. So my, I'm always starting with the base assumption that anyone gets into a position of power is already corrupt and evil.
- [144:20]
Dave Cullen
That's correct. I believe that's absolutely correct.
- [144:23]
Interviewer
Correct. And so if they get there, we can just kind of assume that moving forward. So I want to get your take actually on Thomas Massie in him getting primaried and not being there anymore. I'm, I'm just curious what your read of the situation is and, and him ultimately.
- [144:39]
Dave Cullen
Well, Massey is sort of 80% good guy to me and, and that is that there's things he could have done, he didn't do and I don't know why, and I'm not in his shoes. And to show you how dangerous that world is, I remember when MTG quit and I was on a podcast with a couple people and they were criticizing her from head to toe for quitting. They said, look, you know, you don't. You stayed till the end of the term. And at one point she said, you want me to get Charlie Kirked? I'm going, that's kind of telling you the story about why she quit. She was going to get killed. And, and I was defending her. And what this podcast group didn't realize is I had just finished brawling with Ted Cruz and Mark Levin and Victor Davis Hansen for using the word Hitler in a podcast. And so I was pretty fried myself. So I was sympathetic to those who'd say, fuck it, I'm out of here. And they said, well, you know, she took on the job. And I go, she agreed to be a congresswoman, not a Navy seal. I mean, this is, this. She didn't sign up for that part. So. So Massey had information that he didn't give us yeah, and I don't know what to make of that. But, but generally I would say that Massie being run out of town on a rail, I think destroyed maga. I think it, I think it was a thermonuclear weapon right in the middle of maga. Maybe that's what it was about. I think even if he had not successfully been primaried, the purpose of the, of the primary still was totally effective. So if you're some generic congressperson and you watch Massie get taken to the, to the, to the, to the precipice, even if he doesn't get shoved over, which he did, probably by rigging the election, I'm appalled. I didn't even think of that until after the election. And I was a big believer in the 2020 rig. And so. And I was embarrassed. I go, you didn't think about the fact they'd rigged the election. All of a sudden it seems obvious they did. But, but the message is, we can take down Thomas Massie or if he had won, still, the message, we almost took down Thomas Massie. You're much more vulnerable. Don't fuck with us. And so I think the message was clear. Even if Massie had not successfully been taken out, I think the fact he's been sexually taken out is very destructive to any sort of Republican coalition. And do I really care? I'm not sure because they're probably pedophilic, blood sucking vampires anyways, so why do I care? But, but to, to those who thought they cared, I, I voted for Trump three times. He's completely lost me. He's completely lost me. I, I just. You name what he said he'd do and I'll tell you why, how he didn't do it. And there might be 4D chess going on in the background, but, but I'm. At some point, 4D chess has to, has to translate into a checkmate. And you know, Doge looked phenomenal to me. We got nothing. Did you actually Carlson Carlson interview Buckley and Tucker Carlson? It's really worth watching.
- [148:11]
Interviewer
I don't think I saw that one, no.
- [148:13]
Dave Cullen
So Buckley, Carlson and Tucker Carlson did a show and I wasn't going to watch it. Someone said, no, you got to watch it. And so I watched it. They start out and unfortunately, if you're anti Trump, you'd quit within 15 minutes. And when I post on Twitter, I said, look, no matter whether you lean way left or way right, stay with this, you will be rewarded for staying with it. Trying to get people to not hang up on it. Because of it. So they started explaining why they were why Buckley was so enthusiastic about Trump back way before anyone else was even willing to admit it. Back in 15. And then they slowly go through the rotting process and by the end they're just saying there is nothing left here. We've got nothing, no level of support left in us. One thing that Buckley said that bothered me because I was so troubled by the event, but it hadn't clicked quite at the level that Buckley got to was the January 6th story where I think the response to January 6th was one of the most treasonous events in US history. To me, I think the incarceration of all these people in what were gulag level conditions, it was just horrible. For doing nothing. Right. For exercise. Some guys maybe should have done a little time for doing something bad, but it just, the wholesale incarceration was just a trees moment. I'd like to find the guys who did that, throw them in jail, throw away the key, period. Qed, hang them from the neck until that I have no sympathy for that crowd. But. And Trump pardoned him on day one, which was good. But Buckley pointed out that for four years he had the podium, he had a voice, he had a powerful voice even though he wasn't president. And he said or did nothing. He could have said they're being treated poorly, he could have defended them. The Republican Party didn't back anybody. Unforgivable Republican Party, a bunch of cowards. They wouldn't defend the guys who went there. These are, you know, 18% of the guys who were there were unemployed, there were veterans. It was kind of a slice through real, the bottom of the K of the K shape shaped economy.
- [150:29]
Simon Dixon
Yeah.
- [150:30]
Dave Cullen
And yet no one backed them. They were left to rot in jail for four years. No one backed him. And it hadn't clicked how, how profoundly negligent that was. That's what bothered me the most about that. But the interview's really good and Buckley really brings an A game to the interview. Definitely worth dig it out. I dig it out.
- [150:54]
Interviewer
Simon, I, I was curious if you had any thoughts or comments on Massey and how you viewed it because again, starting from that position that like while he was there I was kind of working on the assumption, like are you playing the heel? Are you for real? Because again, the assumption is if you made it, you're corrupted. But now that he's out, maybe, maybe some of it was real.
- [151:10]
Simon Dixon
I don't know.
- [151:10]
Interviewer
What are your thoughts, Simon?
- [151:12]
Simon Dixon
Yeah, so my thoughts on this is, look, in terms of like what we were talking about before, to want to understand how power works, you have to really understand how the Mafia works. And the Mafia is, you know, you initiate people in, they take tasks, and you have to prove yourself with fulfilling those tasks. And then if you want to, if you want to climb the ladder, you have to go shoot someone and you have to have compromise where you can't leave. That's how politics is done, from my understanding. And so if you, if you take, you know, you first try and fund them and then they have to work for the lobby and their job is to have an acceptable narrative to make people believe that they're working for the people while they work for the lobby. That's the job of a politician. And so your job is to create all of the popularity. One way of doing that is to introduce a bill that will never get through, like end the Fed. So if you say end the Fed, everyone loves you, but it will never actually happen. The Fed, the Fed won't be ended. And so that's a good strategy. It was like the bitcoin one, you know, the rug pull on the bitcoin people that Trump did.
- [152:29]
Interviewer
Even we have the new one now. The, what is it? Arma. It's like American modernization or something. Assets. Yeah. Is that just setting up for midterms again? Something that's never going to be passed? Just trying to carry some favor for midterms?
- [152:40]
Simon Dixon
Yeah. All you're trying to do is you're trying to get people to believe that your vote matters and that you need to invest more time in the political process so that you don't look at who's really controlling the game. And so you have funding and then you do tasks, then you have bills that get popularity and then you have to work for power. And if you still manage to work for power, then you get more funding from the lobby, then you go into a compromise network. You have to be groomed into maybe doing something that would get you on an Epstein file or all the other Epstein's, he's just one of them. And then you kind of go down a path of what power do you serve, which lobby do you serve? And then by the time you get to Trump's position, you have to be in some sick call or do something really twisted so that you can never deviate away from power. And if you do, you end up JFK at the most extreme. But that's like, you know, the whole, the whole process of politics. But your job is to make the people believe you work for them while you work for the lobby. And so with Thomas Massie, there are different factions of power, right? There's the military lobby, which is aligned with Zionism and Israel, and then there's the financial lobby, which is aligned with different factions, whether it be bank for International Settlements or other. Other types of legacy finance lobbies. And so he, he kind of. So he got attacked by the Israeli lobby because he, he delivered what I consider to be useful to transnational capital, but not to military, which is the release of the Epstein files. What did he do in the release of the Epstein files? He released enough to weaken the dollar, lose faith in the American system as an ethical party, throw the royal family and the crown under the bus. You know, really throw Israel under the bus. Because now at that point, after that point, everyone's like, okay, these are Mossad operations. America, you know, you gave the plausible deniability from the military to say, if it wasn't for blackmail, we wouldn't be doing this. You know, that kind of narrative that's really going right now, like Trump is fighting not because, you know, the military profits from war with Iran and we want to hollow out the middle class and transfer wealth upwards. He's doing it because Israel rules the world and therefore he's blackmailed and he's on the Epstein files. And that's a more acceptable narrative than, by the way, the system is fundamentally set up to steal your money and to price you out and to transfer wealth upwards to transnational capital. So it's like he released a more acceptable narrative. And all of the perpetrators of the fic, like the Lex Wexner's, you know, that's kind of too old, where it took out, you know, the JP Morgans, the real people that probably control the Epstein files, it deviated attention away from them and over to everything else. And so going into the Iran war and the closure of the Strait of Hormuz, you had the perfect thing, which is, all right, Israel controls us and therefore we're doing it for them, and therefore we can blame them for all their crimes against humanity, but we wouldn't do it if it wasn't for them, you know, so. And that is consistent with a multipolar world where Israel is going to be dumped. There's an acceptable divorce story, you'll phase out the funding and then Israel needs to be more useful to UAE and India and brics and gcc, and then we're going to have Iran sanction relief. So to me, if I look again, you probably might call me crazy, but when I look at Doge, that helped the Technical industrial complex, it gave them data collection. And when I look at tariff war, that helped brics, it moved the world to multipolarity and was wealth transfer upwards. When I look at Epstein files, that was dismantle the empire that props up the dollar and expose Israel the crown, that type of stuff. But all of it gives you an acceptable narrative. We're taking on the deep state. This is MAGA. The QTARDs have kind of like still bought into oh yeah, Trump is the wild card. And so when you have people like Thomas Massie, it distracts attention from who's really calling the shots and you get to push the narrative that Trump is going to actually make a difference and just get people to buy into the political process. So they're like, okay, it's actually progressing. Q is happening. Trust the plan. And kind of Thomas Massie was just another faction of power to show, oh, by the way, Israel is in charge and all these crimes against humanity, that's not how our system is structured. It's not our stock market that benefits from it. It's actually just because we're blackmailed. And so it may just be not as coordinated as that. But that's how I interpret it.
- [158:07]
Interviewer
Dave, you have anything you want to respond there with?
- [158:09]
Dave Cullen
Well, there is a curious Trump seemed unabashedly blaming Israel himself. You know, saying we did it because Israel asks us to phrases like that. And I'm 99% popular in Israel, as you said. I remember seeing that clip going, it's got to be AI. I asked Grok, I said, please tell me this is AI. And so it seemed to me that he was playing into the Israel did it theme. I do not let Israel off the hook because I do think they're kicking the out of they've already kicked the out of Gaza and I think they're kicking the out of the Lebanon. And I, I just don't like it. And I know that we've done worse and the question is, why does this bother me? Why does this one bother me? That I realize it's because, like just take 911 we were in on it. I can imagine a scenario where Dick Cheney and his oversized Dick, according to Kathy o' Brien and his buddies, said, look, we've got to get to the Middle east and the only way we're going to get there is to have a catastrophic false flag moment. And they tried to blow up the towers. Didn't work. So I said, okay, we're going to really have to do it this time. If you are in A and I could imagine that if you're in a position that they're in, you have to be able to make calls like that or you can't have that position. So when you drop people on Omaha beach, you know, tens of thousands are going to die. You have to live with that. And so I could imagine Dick Cheney and these guys were in on 911 and that they really sincerely believed it was in America's best interest. Now the problem I have with the Israel story is I'm having trouble saying that we're doing that because it really is in America's best interest. I really do feel like we're not doing what's in America's best interest and that we are controlled.
- [160:19]
Simon Dixon
That's where you have to make the separation between even the confessions of an economic understanding of the world. World. It's not America is a nation state. It's America as a vehicle, just like the British Empire was, of transferring wealth from the people through the debt markets over to the equity markets and transnational capital and America. And that is the Post World War II Bretton woods system, because the Federal Reserve was the same system. You had the bank of England, the British East India Company and the government that takes on the debt in order to bankrupt the government, bankrupt the businesses and bankrupt the people, transfer wealth up peak centralization, then destroy the currency as world reserve currency and then set up a new host which was Federal reserve. World War I pump, Great Depression, World War II, Cold War, fake war on terror, and now immigration crisis in order to manufacture civil unrest.
- [161:27]
Dave Cullen
It seems to me there's an optimum in the curve where you need the masses to share enough of the wealth to not become a problem. And it seems to me they're overshooting,
- [161:44]
Simon Dixon
unless that's part of what you want. So if you want a technocratic Orwellian police and surveillance state, then the strategy
- [161:52]
Dave Cullen
which we seem to be heading straight
- [161:54]
Simon Dixon
for, so then the strategy that they've always used in the rest of the world, you just bring it back home, which is civil unrest, color revolutions, domestic terrorism, privatized police state. I mean, there's 2 million people in prisons in America that every person in prison is just simply a dividend to private corporate interest. Every deportation, they built out all the Palantir technologies, they've got all the Doge data. And so if you want to disrupt Europe, UK asset strip America and concentrate all the wealth upwards while you move into multipolarity and you have a larger global Palantir, artificial intelligence data centers in space, CCB integrated infrastructure of one global government, then you need to manufacture civil unrest. And so you need algorithms to drive people into the most extreme version of themselves. And then you shake them all up. And then you get what you've got, Bank Secrecy Act, Patriot act, genius act, Clarity act, and you've got the full justification for programmable money integrated into everything that America has already beta tested around the world, particularly in Gaza.
- [163:17]
Dave Cullen
Do you think there's a wholesale eugenics component to this story?
- [163:25]
Simon Dixon
The whole populate depopulation thing that came out of the club of Rome in 68 from the Rockefeller thing? And I do believe there's a faction of power that believes in that. And it's the same one that did the whole climate change, blaming it on the people so that everyone was radicalized into the ESG narrative and the pushing of renewable energy. And if you think about it, that led to those factions of power were the same ones that funded the Bolsheviks, introduced communism into the Soviet Union, overthrew the Russian Tsar, then you ended up with installing communism into China and the Mao side. And that was very much a depopulation agenda.
- [164:12]
Dave Cullen
It certainly did depopulate a few people, not to mention more recently the one child law, which has extreme consequences 20, 30, 40 years later.
- [164:31]
Simon Dixon
This is why I think we're splitting the world up into multipolarity. So if you're, if you've got a spreadsheet at the top of the world, you're saying, okay, we've got 250 million aging population in China, we've got collapse in birth rates all around the world, so we replace all the workers with AI and robotics to the extent we can, then we need someone to consume. Where are the birth rates? They're in Africa, they're in Southeast Asia and they're in the, in Middle Eastern countries. And so if they're going to be the consumers and everyone else is going to lose their job and be put on a central bank digital currency and a stablecoin, what Elon calls a universal high income. And by the way, if it was high income, why don't you just put everyone on it right now? What are you waiting for? Because you got all the tech and you know, then, then that's why I think they're splitting the world up to multipolarity While developing a CCP, PBoC, bank for International Settlements, Federal Reserve, stablecoin, Central bank, digital currency, Pre Crime Minority Report. And that's where all the civil unrest comes from. For me. If America didn't go into civil unrest, if Europe didn't Do it. If UK didn't do it, you just pay someone like Tommy Robinson to create it. Then you do a color revolution, then you put MI6.
- [166:03]
Dave Cullen
Complex characters. Complex characters.
- [166:06]
Simon Dixon
Tommy Robinson, I mean, he's Israel funded, so he's not that complex.
- [166:11]
Dave Cullen
Right? Well, it was complex until I knew that. And. And I still somehow have this funny feeling that there's an optimum where the people will reach some. A control burn will get out of control.
- [166:31]
Simon Dixon
The only way to do that, in my perspective, Dave, is for people to stop believing in the political process, stop voting, stop thinking there's another hero. There never is. The system's too big than anyone. I mean really, if anyone was. If you still believe in politics and if anyone was going to change the system, it would have been Trump.
- [166:51]
Dave Cullen
Right? So if that's exactly right. The last hope. The last hope.
- [166:57]
Simon Dixon
So now if you buy into another one, then you're an idiot, quite frankly. So now you need to look at what really controls power and it is transnational capital. From all my research and finance. So how do you break that? Well, you break that if there is coordination for people to say in a coordinated fashion, to negotiate with power, to boycott how they spend their money, to exit the system, Bitcoin and gold in self custody. And if everyone in a coordinated fashion said, all right, break this cabal or I'm not paying my mortgage and I'm not paying my rent, that breaks the system. And they don't want you to know that. They want you to think that it's because of the app seen files, it's because of this, it's because all of the. It's because of the radical left, it's because of the far right, it's because of the Muslims, it's because of the Jews, it's because of the evangelical Christians, it's because of the Democrats, it's because of the Republican. Everything but what it actually is, which is transnational capital. Managing a portfolio and debt is the instrument for your subordination.
- [167:58]
Interviewer
They have to maintain that political narrative in the sense that you have to think that you have some hope or some control or the whole thing just falls apart. Which makes sense. Sense of why they invest. Because I was thinking about like, what's the point in continuing to prop up the idea that you have political influence? That's what pacifies you. And not only that, there's. I'm making this weird connection, Simon, I'd be curious your thoughts on it. Not only does belief in the political system pacify you, but it also, like neuters and sterilizes you. Meaning that like in Canada, I think birth rate's like 1.25 per woman. I think the US is like 1.4. But it's anecdotal. But if I look at the people who.
- [168:32]
Dave Cullen
The Canadians are too busy choking the chicken. But that's a separate issue.
- [168:36]
Simon Dixon
That would be.
- [168:36]
Interviewer
That'd be another interesting one to go down and why that might be the case.
- [168:39]
Simon Dixon
That is another psyop, like pornography and only fans. You know that. That was a psyop.
- [168:45]
Dave Cullen
You know, you know who owns the, the porn. The porn system.
- [168:49]
Simon Dixon
Yeah, bunch of Israeli oligarchs.
- [168:51]
Dave Cullen
That's right. And so coming back there.
- [168:55]
Interviewer
But the thing that I, that I, I keep coming to is the idea that at least for those that I know that no longer believe in the political system, they also reject the not having kids. They also reject the not having.
- [169:09]
Dave Cullen
So they're playing right into it.
- [169:11]
Interviewer
They get, they get. It's almost like they get out of it. They actually get out of this. As soon as you stop believing in the political system, you start to opt out of everything that's going on.
- [169:20]
Simon Dixon
Yeah.
- [169:20]
Dave Cullen
The other thing is.
- [169:23]
Simon Dixon
Oh, sorry, go on, Dave.
- [169:24]
Dave Cullen
It's a more, It's a more dangerous. We, we could oppose the power structure. When guns were the major weapon, the digital world were powerless, in my opinion. Now, you guys, I know you guys like bitcoin, but, but, but, but, but Bitcoin still needs on ramps and off ramps to get to the. The real world.
- [169:48]
Interviewer
I agree. Unless you're going in a completely circular economy, which is like what we're trying to set up here.
- [169:53]
Dave Cullen
We're literally just going closed system.
- [169:55]
Interviewer
A closed closed system. Peer to pe that the digital risks are unbelievably high. We do have tools that are work, that work. Encryption does work. We do have things that can at least get outside of it or can't necessarily be controlled. Like we just had. What is it, Marty? Melanie released Noster vpn. They start to shut off VPN providing access. We've got white noise from oh geez. Max Hillebrand for encrypted communication signal like that again is not relying on a centralized server that these tools aren't necessarily well known in the public. You can escape the digital panopticon, but you're gonna have to go out there and learn a few things. But Simon, I'm sure you've got more.
- [170:32]
Dave Cullen
So the question is, we're not at the point where you can go with those tools. My understanding, I'm just guessing. Let me Put it to the guest level. Can you go buy a pizza yet? Can you buy the pizza? With these highly, highly encrypted digital tools, you can be.
- [170:51]
Interviewer
No, the closest, like if assuming the. Assuming I don't actually know the guy at the pizza shopping doesn't just take bitcoin directly from me because I have those people that I could just pay for beef with bitcoin, which is phenomenal. But like the closest that I could think of, of getting that is there. I can get onto like prepaid Visa cards from bitcoin without anybody touching it in between. So I could sneak kind of into the existing financial rails through some of those means.
- [171:13]
Dave Cullen
Visa card.
- [171:14]
Interviewer
Right. I'm still having to tap in. So I could do it in, in a way where the. I'm anonymous on the buy. I'm anonymous holding it. So there's nothing directly linked to my id. But still Visa, like if they somehow knew that it was me, they could stop pizza now.
- [171:27]
Dave Cullen
Debanking scares the shit out of me.
- [171:30]
Interviewer
They're coming for you, Dave. I guarantee it. I'll help you when it does.
- [171:33]
Dave Cullen
Yeah, I know. Debanking really scares the shit out of me because you really are. A great analogy is the discussion of tribalism in prehistoric period where your tribe was about 120 people and if they made the decision that you were an asshole and they banned you from the tribe, you died.
- [171:55]
Interviewer
If you can't trade, you're done, you're done.
- [171:58]
Dave Cullen
If you are not part of a tribe, you don't go out there solo and survive in the rough world of prehistoric mankind. Debanking is effectively that you are being kicked out of the tribe. I understand the wild enthusiasm for bitcoin. There's a hypocrisy amongst, I would say the, the ignorant participants and that they think they can't be touched. Whereas the serious bitcoiners I know are sitting there going, we've got major battles ahead of us to win before we can't be touched. I also think there's a terrible hypocrisy when people get all wildly enthusiastic when Larry Fink signs off on bitcoin. Yeah.
- [172:43]
Interviewer
And I go, there are others too.
- [172:45]
Dave Cullen
The biggest punk ass bitch in the world just joined your team. You should be bothered by that. You know, there's some. There's a problem that's not libertarianism. Let's start with that. Right?
- [172:57]
Interviewer
Yeah.
- [172:58]
Simon Dixon
This is the important part. Like this is the great place to like as like the ending conversation, I think. Because all the innovation of that, which is why Larry Fink's a psyop to the bitcoin community, which is why Michael Saylor's a psyop to the bitcoin community. Because all of the innovation around all of that decentralized, once you get to the realization that the battle is centralization, central banking, central bank, digital currencies versus decentralization and you realize that all the crypto scams, all the Stablecoins or the CBDCs, they were all psyops to take you away from bitcoin. All the Wall street wrappers, all the ETFs, all the borrow against your bitcoin and custody it here. All of that was to distract people from what's really happening now. They don't want to get rid of the actual. It's kind of like I always liken it to the British Empire always allowed the tax havens to exist because the elites wanted them. They want bitcoin in self custody to exist because they want to use it, because they know that it came out of an open source movement. And all of that innovation around integrating with community banks, with more decentralized banks, integrating with, you know, all of that, all of the decentralization, all of the solutions, the VPN side, the you own your own identity that you own your own, all of that comes from understanding how to hold bitcoin in self custody. And if you can just pacify somebody into saying no, no, I'll just do it via my pension because it's tax efficient and I'll buy it via BlackRock's ETF and then we'll put. They'll custody it in Coinbase and Coinbase is a public company and they all rely upon capital from the debt capital markets and equity capital markets. And then they'll pay yield by borrowing. You know, they're doing exactly what they did for gold. They're trying to make it where nobody ends up owning the gold. They end up owning an IOU gold or a paper gold and people will fall for that and sadly the vast majority will do it that way. But all of the exit, all of the community based, all of the sovereign, individual, sovereign company, even sovereign countries, if they want to put some power against imf, even Iran, right now, if you look at it, they're the largest sovereign bitcoin miner plugged into nuclear power, not nuclear bombs. I know we're being told that this is about nuclear bombs. It's actually about nuclear power and the fact that they're mining bitcoin and then they created a way of people being able to pay for the straight of a moose. It was their stable coins that got confiscated. It was their defi contracts that got reversed. But their bitcoin is still with them in self custody. And now they're able to negotiate with that position and probably become Bitcoin capital at the end of all these sanctions being removed. So all this to say is that global. I own my own money, I can spend my own money and the central bank can't debase it. They're coming after it hard and most people are falling for it. So Larry Fink is not our friend. Strategy is not our friend. 21 Capital is not our friend. In fact, on Nathan's show, I went through the psyops with the Epstein trying to infiltrate the centralized companies and all these things. And it's so sad to see so many bitcoiners fall for the psyops. But there is still a hardcore community that get the. That this. That they're able to free themselves. And Nathan and myself are examples of those people. But of course there's. There's. It's a. It's a spectrum. I still have to pay within the rules of the country and the island that I live on. I still have to pay for the spending Money within Visa, MasterCard and Community Banking and credit union rules. And so it will never be perfect. But you should never allow that to stop you from experiencing the 80% of what you can get. And they'll keep it because they want to use it, build it.
- [177:14]
Interviewer
You can. We're going to have our little market here come up in June and I. For any feds that are currently listening, I'll just. Oh, and I'll do it. I'm definitely gonna be buying beef jerky with bitcoin and reporting it to absolutely fucking no one. And no one will know that it will happen. Like, that's like. We gotta start somewhere. And that's where we start.
- [177:33]
Dave Cullen
Yeah. Keep it refrigerated. God, speaking of bad stories, that's about as funny as Erica Kirk right there.
- [177:47]
Interviewer
Worst possible example. They've ruined that word, unfortunately.
- [177:49]
Dave Cullen
Oh my God. Are they still trying to put Erica Kirk in some place important? Or is that. Is this just Entertainment Value
- [177:59]
Simon Dixon
usa? You've been following that story. Is it still.
- [178:01]
Dave Cullen
I have been following that story,
- [178:06]
Simon Dixon
dude.
- [178:07]
Interviewer
Okay.
- [178:07]
Dave Cullen
I'm not.
- [178:09]
Interviewer
Ben Shapiro put out a Fortnite video. I didn't think it was real. I had to go to his channel and double check. The views have cratered and he put out a fucking Fortnite video. That's how bad it's gone.
- [178:21]
Dave Cullen
TP But. But Erica, I hear people say that she's going to be in the 2028 ticket. I'm going. You got to be kidding. It just. She is the most inauthentic person I think I've ever seen. I am 98% confident that that chick was trafficked from childhood, possibly from birth, and that she's actually a relatively failed experiment in the MK Ultra world. I don't think she's very good at her role. She's a lousy actress. Let's start with that.
- [178:59]
Simon Dixon
I haven't been deep down the rabbit hole, but there's the whole family, dod, Romania connection. It's all there.
- [179:06]
Dave Cullen
Yeah. Yep. The trafficking from Romania and her mother being. Being. The other interesting thing is so many of these trafficked spooks, you know, the trained assassins, come from military families. It's really interesting that I'm trying to piece it all together, and it is just chaos and. And I don't know if I'm. I don't know if it's at any point going to turn out to be a productive intellectual exercise. It could be I'm just wasting my time. But. But I've been trying. I've been trying.
- [179:46]
Interviewer
It's at least worth exploring. And as you continue down that rabbit hole, we'll have to have you back on to tell me exactly what you find, and I'll be. I'll be terrified to actually learn it. Before we. Before we jump, I did want to ask Dave and you, Simon, what is the essay, particularly with, like, the street of Hormuz, what most has your attention right now? What should people be watching for? Dave, I'll start with you.
- [180:07]
Dave Cullen
I believe it's open when I see it. I was going to ask Simon the question, what percentage of the original flow rate is still now occurring? My guess is it's not a very high percentage. So you can focus on the fact ships are getting through, but what percentage of what used to get through is getting through? And I think it's pretty small. Yes.
- [180:27]
Interviewer
No, I was gonna say even quickly. I know that the Navy was escorting some through, I think, this morning. And then similarly, Simon, just to tag on there, what's the flow is going to be like when it opens back up again? Because now there's a whole new risk at play. I don't think it will be as much.
- [180:39]
Simon Dixon
Yeah, right. I can't say. You know, who knows, really? We're working off the sources we have. I can certainly say that it's increased since the China meeting, and I can certainly say that this is a manufactured crisis. And it is highly managed. And in order to get a shipment through, you need to get insurance, which comes from Lloyd to London and at Lloyds of London, insurance will require that you need to have assurances that the US isn't going to blow you up and that the IRGC isn't going to blow you up. So I know that all the powers and there's only nation states that are willing to take that risk. And if they're willing to take that risk, it's because they're in the inner circles of knowing that they won't be blown up. And so it's a small club and we're not invited, but it's increasing. It's a manufactured crisis. This is a disaster in so many ways for so many. But I know who's crushing it. I know that OPEC is crushing it. I know that the Gulf countries were hedged in order, but they need to open fairly soon. I know that there were significant investments in Texas infrastructure from both Qatar. I know that Saudi Aramco and Paul Singer connected to Israel is going to be benefiting from much of the refinement from Venezuela. I know that Iran is fine, it can be closed for as long as you need it. They're going to be fine. I know that China was 100% prepared. In fact, their reserves somehow are going up and they're crushing it. And they have significant leverage over Taiwan to diplomatically reunify. I know that a small number of companies, Chevron, Exxon, Golden Pass, Cheniere Energy are getting record profits. I know the stock market's doing incredibly well. I know that even in Taiwan that's got an energy crisis and a chip crisis, has still got stock markets that are doing incredibly well. I know that India is the net loser. And I know that UAE and India, which are corridors within BRICS and GCC, are being gobbled up by the financial industrial complex to prepare for a multipolar world. And I'm pretty sure that the second that the IRGC powers within America and the Gulf countries want to open, it will be opened. And I'm pretty sure we're hearing that phase, but you do need a Hollywood movie. And so I think there's still one more escalate to de escalate.
- [183:13]
Dave Cullen
I began to question. I began to question how much the 70s crisis was a completely fabricated crisis. And the two. There's two tidbits that keep catching my attention have been bugging me. One is Mike Wallace interviewed the Shah of Iran and the Shah said to him somewhat cryptically your problem with oil in the United States is not due to reduced flow. And Wallace was confused by this. The Shah was basically saying, don't look to us for your oil crisis. It's originating elsewhere, which I think one would argue is Exxon Mobil, et cetera. And then the second thing that really struck me is we had alternate day pumping gas. And the more I've thought about that, the more absurd that is, because by pumping gas on alternate days, let's say my license plate says I can pump on Monday, Wednesday, Friday. How in any way is that restrictive? To me, that just means I have to go to the gas station on Monday, Wednesday, Friday. I also can't go to the grocery store necessarily at 2 o' clock in the morning. So I don't shop at 2 o' clock in the morning. And while I'm pumping gas on Monday, Wednesday, Friday, the Tuesday, Thursday, Saturday crowd is not competing, so there shouldn't be lines at the pumps. And so those lines and that bad imagery make no sense to me. Unless the goal is to get oil to go up fivefold, which it did.
- [184:54]
Simon Dixon
I was going to say.
- [184:55]
Interviewer
The narrative just seems to create. It's almost like creating a rush for the exits. Like you. If you tell them that you can only go on these certain days, you're going to change their behavior. They might actually be feeling up more regularly because they have the false sense of constriction, false sense of.
- [185:09]
Dave Cullen
They can hide massive price spikes. Yeah, behind the panic.
- [185:16]
Simon Dixon
I won't go too deep into it in the closing, but there's a lot there. The Yukpa War. So that's the Israel side. Then you've got the reaction. You've got the assassinations of King Faisal in the lead up. You've got the creation of the Safari Club. You've got the reaction of what happened in Venezuela, what happened in Iran and what happened to the Gulf countries. You have the creation of the petrodollar, you have the OPEC story that led to the creation of the petrodollar. And then eventually you get the Iranian revolution against the Shah in 79. So you can look at what happened and you can see what war was needed in order to manufacture that event.
- [186:04]
Interviewer
Perfect place, perfect place to wrap it.