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Simon Dixon
This week really began with the Fed. Once the Fed said what they're going to do with interest rate, we had a big crash in AI stocks. But apparently there was an insider from Citadel that was telling people what was coming. And when it didn't happen, it had a big crash. And guess who bought all the positions? It was Citadel, after the unwinding of a highly leveraged hedge fund. And that same Citadel is invested in a new AI stock called Ionic Digital that used to be a bitcoin mining stock that was rewarded to the victims of the Celsius scam. So at the same time, we're also getting ready for what happens with activation of BIP110 and Bitcoin. And we had some of the wallet hacks that we need to understand so that you can protect yourself, as well as escalations with Saudi Arabia, with the US With Iran, with Yemen, with Iraq. We're gonna put it all together because we haven't done this for a while. This week on Simon Dixon Hard Talk Live, I've just been given a stat
that's blown my mind.
Of the people that watch my videos, 73% of you are subscribers, which means that approximately 27% of you are aren't subscribed. Now, I'm really happy with that, but I want to know why you're watching this video and you're not subscribed. I don't do sponsorship, I don't do upsells, I don't do monetization, I don't do adverts. But I really like the rest of you. The 27% to hit the subscribe button, hit the bell symbol and hit all. Now, that will really help me make sure that I can get you better content and we can get this out to more people.
James Delingpole
Foreign.
Simon Dixon
Sovereign wealth builders. Simon Dixon here and welcome to another episode of Simon Dixon Hard Talk Live. This week we're going to be covering the AI sell off bitcoin wallet hacks and of course, the global realignment that's happening in the Middle east, whether it be Iraq, Yemen, Saudi Arabia, Iran. The latest over there, how we follow the money and check in on what's happening and what we expect to happen next. As always, we're going to be doing this in two parts. Part one, I'll be going through the new things that happen this week. The AI unwind, the bot, the bitcoin decisions leading up to the soft fork. And then we'll be diving into the Middle Eastern side and what it actually means in part two, I'll give you A quote from the interview, politicians are paid for rent, prostitutes. We had a really nice conversation with a media veteran where we were discussing from the perspective of somebody that's actually worked inside the machine in media, the true mechanics of power. And that was when I was invited onto a podcast with James Delingpole. So let's jump right in with this week in the macro and market side. So really the big event happened when Wednesday. We had the Fed chair announcement and people have been wondering, is it going to be lowering rates, is it going to be increasing rates? You know, inflation is high and there's different theories around what's going to happen. You know, there was the big hoo ha between Jerome Powell and Trump. Then we had the regime change at the Fed and people were thinking this is Trump getting his way and he's going to be reducing rates. But we had nothing happen. But people are starting to think that we're potentially moving towards a rake height or nothing happening. So anyway, the rate decrease isn't happening now, allegedly there was lots of stories and rumors and I haven't really sort through what's true because I've been writing my book, so I've just caught up on the stories. I haven't got the full thing here, but I wanted to make sure that we just take a step back and think how this all fits in. But there was allegations against Ken Griffin from Citadel, the big hedge fund manager, you know, the one that was involved in Gamestop, massive Citadel financial industrial complex node on the hedge fund side, you know, up in the levels of Jane street in terms of market manipulation and, you know, various other things. But there was a massive AI sell off. And the rumors was that Citadel was telling people that there may potentially be a different outcome with the Fed. And when it didn't happen, much of the AI stocks had a really big and bad reaction to that. Now, in the meantime, one of the hedge funds that was over leveraged like forex to a $25 billion AI infrastructure hedge fund was wiped out. They were completely over leveraged. And because of the severe correction, there was a margin call and guess who ended up buying all of those AI stocks? It was Citadel. And this was as a result of this hawkish tone that happened as a result of the Fed. Now, in the reaction to that, remember what happens when you have people selling bonds, you have big increases in the yield on the bonds and the Treasuries. There was a really big hike on the 10 year and the 30 year. So we're above, you know, the, the 5% mark, which we've been tracking throughout the whole war and now we're up to 4 and a 6, 4.6 on the 10 year. Now remember, the 10 year treasuries is what sets the rate for most most debt mortgages, less credit cards. But auto loans and mortgages are the most important part of it. So when the yields on the 10 year bond go up, it has a knock on effect on mortgage rates. Which means that when it comes to refinancing, if mortgage rates are above 7%, you start to hit some of that stress. And so throughout the whole Iran war we were talking about every time the rates get above 4.5% on the 10 year and 5% on the 30 year, you've got a taco event, a capitulation. But we had this big spike in yields now. So this is a near new all time high, really not all time, sorry, near time high. And so that had a really big impact on the AI stock sell off at the same time as these yields going up. And so we said, you know, some of those funds as we said, were hugely leveraged. When you're leveraged it means you're borrowing, it means you can lose significantly more because you're taking your capital that you're investing and you're taking out a leverage position, you're getting increased exposure. And so when there is these sharp moves downwards, you get these liquidations. And so Citadel decided to use this opportunity to buy a lot of these AI assets. Now there's two ways of interpreting that. One is that they're building a long term AI position. The other way is that they're building a position so that they can then leverage and then they can do their market shenanigans as a trader. But immediately after the purchase we had a massive AI market rebound and there was a bunch of for selling. As a result of those liquidations, the positions were realigned and Citadel became the net beneficiary from many of those AI purchases. So we will keep watching this and we will see what happens here. But unwinding AI positions, is it based upon the fundamentals or is this a short term trade? Because we know that China has significantly cheaper infrastructure and the expense of the US model With all these token model, whether we're going to be getting something and there's some insider information, we will see. But the smart money is buying into these forced liquidations. Whether that's for more leverage or whether that's for a long term position, we shall keep watching this space. Speaking of AI, if you were involved in the Celsius bankruptcy. Congratulations. There was a new AI infrastructure stock that went live this week. It's called Ionic Digital. Full disclosure, you will know I am the, I was the seventh largest creditor in the Celsius bankruptcy and we fought to keep the bitcoin. So we got the upside from the bitcoin and package all the other assets into a company that has now gone public. And that public company, Ionic Digital went live on Nasdaq. They pivoted from Bitcoin mining to taking the, the, their, their locations and, and renting it out and selling it out to AI companies. They got a multi billion dollar contract. And guess who one of their early cornerstone investors was right before the public offering. It was Citadel. So it went from when in the bankruptcy the shares were issued at $20 and yesterday at close they were trading at about $70. Haven't looked at what's happened to the price today. So. But the point is the people that were selling, the distressed creditors that wanted out there seemed to be a big amount of institutional buying that was allowing people to exit into those positions. And Citadel was one of the larger investors here. So it becomes really important. Is there an accumulation of positions in order to leverage or is this longer term positions that are being set up now in you know, my long term theory, I think that everybody needs to be an owner in order to protect themselves from what's happening in the AI trade. Because if you don't own parts of the infrastructure then you don't get, you know, you may be using the productivity increase, but the productivity increase is leading to mass unemployment is my theory. I don't think it's going to create jobs. It's only the Silicon Valley people that have to say that, that are saying that. I think it's going to lead to mass loss of jobs and eventually some kind of universal basic income highly likely to be issued via some kind of stablecoin or CBDC globally or whatever it may be. Because those that only assets, this is massive wealth inequality. Those are the most productive for getting the highest paid jobs and they're being paid in order to take out the jobs of everybody else. So the more productive you are, the more aligned you are with AI, you're more likely you are to be one of those people that retains their jobs. And then the other half of that is you need to be an owner in the infrastructure. Also building your freedom with open source AI as well, which is mainly being built upon the China stack at the moment ironically. And so the China stack is allowing people to do this significantly cheaper and the US stack is trying to justify this capex expenditure and valuations. Now one of the ways to protect yourself there is to be the owner of the companies that are actually renting out the infrastructure that makes up the AI that is signing long term contracts with the Magnificent Seven like Microsoft and various others. And so we just happen to be, as a result of that bankruptcy, receiving some of those shares. You know, not financial advice, but I just wanted to disclose that position and also that Citadel started building that. So I'm going to be watching this one very closely. But the ticker is I o n d those shares have been distributed and really those that were, you know, if you ended up in the end you ended up with about 25 of your Bitcoin as a result of the bankruptcy and 75% was missing. And then they're doing lots of legal action. There was a settlement with Tether that liquidated a lot of the bitcoin based upon a bitcoin backed loan that then used the Tether in order to invest
in this mining infrastructure.
That's kind of the story. But that's been distributed now and fortunately, yeah, the shares have gone up to $70 right now I won't be selling because I'm going to be holding as part of owning a piece of the infrastructure behind the artificial intelligence, knowing that it's been rented to some of these larger counterparties. Anyway, none of that. You should read all the different stuff. I just wanted to share what's happening there and I thought I'd cover it today because it launched on the market and also the, the Citadel position, which I thought was interesting timing. But anyway it's a strong outcome for creditors who held. Congratulations. It's a nice ending to a very painful story for those that sat through over the last four years and it is now AI infrastructure. Now interestingly is that intersection between Bitcoin and AI. Can you, if there is a crash in the AI part can you pivot back to Bitcoin? Because what's really interesting is is this week Bitcoin went up while AI stocks were crashing. So really Bitcoin is just being its own thing. There is no real thesis around it used to be correlated to AI stocks then the AI stock significantly outperformed Bitcoin and then the AI stocks have its correction and Bitcoin goes up. So that whole relationship around what Bitcoin is, it is its own thing. It's. It is its own fixed supply economics and short term, it's a crazy beast. But the Only way to do that is to dollar cost average for the long term into an investment position and then you decide your allocations around that. Well anyway, it pivoted from Bitcoin mining and now it's in the AI HPC area. And it will be really interesting to watch how you can go from AI to, to Bitcoin mining or whether it just goes down the AI route, locks in long term contracts and how that all plays out especially with these valuations. And what comes next with the. The China rug pool that I think is built into the equation. Personally the demand for AI infrastructure I think is going to be solid for many, many years and whatever happens there. But the, the Citadel was one of the cornerstone investors that makes me very skeptical. So I think right now it is probably likely that if you're looking to sell your shares at these prices, you may be speculation selling to Citadel. And I think Citadel seems to be building a larger position there as well as all the other AI infrastructure. So read that as you wish and think about the capital rotation. We'll keep, we'll keep asking that. So you know the questions you have to ask yourself is this bullish for AI infrastructure as a result of this or is this part of the securities lending opportunity and a wider big picture that the financial industrial complex is building is it market making opportunity for them? But we'll follow the institutional capital nonetheless as we continue on this AI trade. So also a date to be interested in is a lot of the AI infrastructure and Bitcoin mining in the US with the public companies has con concentrated around ERCOT in Texas and the. There is new regulations that are coming through that will be determining who gets more allocations. And allocations have become extremely scarce in this AI world. And so everyone that's applied Ionic Digital has applied as well. But the August is the timing of whether those applications are going to be approved or not. And if they get approved and it leads to a higher allocation then you can see that there is so much demand from this AI play at the moment and that leads to you know, significant additional power capacity. Will it lead to more contracts? But April will be where we can watch and see what happens around that. You know the choke points that are happening right now is AI gpus computers which goes into the the chips trade and then of course the electricity and the electricity allocation. So the execution of this now depends upon power. Then there's a regulatory chokehold. If you get additional capacity then these are kind of the things that are happening right now in terms of these transitions but that's expected to carry on until right up until 2027 and I think demand will be there regardless up until 2030. So you know, it's not just the chips play. Power is becoming one of the key assets which really ties into my long term thesis, if you've been a long term listener, that it was AI that was going to lead to a massive realignment and repricing event in the Middle east that led into the geopolitics and everything that's happening right now. So this I think is a good time to go into the geopolitics.
James Delingpole
Right.
Simon Dixon
So with there was a visit from the Netanyahu in the White House this week and who went to meet Netanyahu. Remember all those Israel rules the world and Netanyahu is the king of the world, people. I mean now he doesn't even get anyone important meeting him at the airport. I told you Netanyahu and Israel are nodes of the military industrial complex. The Mick exits when they do a deal with the fcc. And you can make regional, you know, regional reinvestment more profitable than the forever war. The forever war is coming to an end. This is an operation to end the forever war in the Middle East. Realign the Middle east with West Asia more aligned with China based upon China capital and Gulf capital. And then therefore there is a, you know, when you don't have a forever war, what is the role for Israel? Because Israel is a mcnode. Their job is to destabilize the region so that they can increase the revenue for MC companies. And it was leading into this year many of the. Because the Israeli stock market has done well relative to the economy. That is the FIC asset stripping operation. Exactly what's happening in uk, exactly what's happening in America. That means that there's going to be now state military industrial complex assets that are being privatized and a percentage of it is being IPOed which can then be purchased by foreign investors. And so this is the distress, you know, this is the acquisition strategy of how you weaken the state, privatize the assets and then realign Israel around who the new shareholders of the MIC companies are. And leading into that there was Abraham Accords which is the where UAE was able to then invest. And so everyone builds their own narrative of what's happening now. Do I like this? I'm just reporting on what is happening by following the money. And so you can see that probably one of the cornerstone investors in the MIC assets in Israel will probably be the Gulf countries. Others will interpret that as they're under the control of Zionism. But if you follow the money purchasing, that means you get influence over that, which means then you can change the geopolitics of the region. And so what else did we happen? So we had Netanyahu who got a very, you know, normally, you know, it wasn't him going to Congress, getting his round of applause, nobody met him at the airport, there was no red card, red carpet treatment, there was just your token statements from the Trump administration and Netanyahu. But when he comes, it's because things aren't going the way he wants them to go as a mick node. And my long term theory is that he will be regime changed, he's negotiating his exit and then Israel become more thick aligned in a post forever war model. In order to achieve that, then there is no need for resistance. And so Iran, which had sat down with Saudi Arabia via China normalization, had effectively already normalized in 2023. And you need a transitional war in order to go through all these realignments. So in the Iran side, where is the axis and where is the action? Why I was talking about how Lebanon would most likely be a holdout clause. Gaza, while they continue to get as much land as possible. You know, the crimes against humanity are still as bad as they've always been. But Gaza you would enter into a deal with Hamas. Then there was the announcement of the border peace. And so Trump this week starts bringing up the question of border peace again and we get rumors that Hamas is entering into the next phase of disarmament. Now these were things that everyone that said Israel rules the world thought that could never happen. But from my perspective, all of these, the, the, you know, the resistance that was backed by Iran is no longer backed by Iran. And so therefore it moves into a state and political integration process because it removes the, what I've always called operate Operation gladio strategic tension, I. E. Iran and Israel always, you know, death to America, death to Israel. Israel saying they're trying to attack the Jews and we're surrounded by enemies and their terrorists. And that made the mick trillions and trillions of dollars. If the FCC is in control, which I think it is moving towards here, then the forever war ends, Israel's role change and Iran needs to shed the resistance and any of the proxy aligned in exchange for state armies and state politics. And so you know, you'll get, I think you're, you're getting movements towards the settlement with Hamas, you're getting movement towards the outcome with Hezbollah. And this, you know, everything is A, it's a different strategy. So Iran needs this event in order to maintain its, its IRGC power structure and maintain and get as much out of this negotiation as it possibly can. So this is diplomacy alongside military operations. And the diplomacy is an alignment with FIC to prevent the forever war model and a regional stability and a recognition of China's new role in the region. China's purchasing all, most of the energy from both Iran, Saudi Arabia, Qatar, everyone else. And so a regional framework is what comes at the end of this. And that started, as I said, in probably earlier than 2023. But the optics of it was the Saudi Iran deal and that was signed in 2023 and this is the execution. Saudi and the Gulf countries don't want resistance there because then it doesn't justify Israel. And if Israel is being acquired more and more and it's going to be integrated into the Gulf region, then through this normalization with Iran, Iran is more aligned with China. You destroy the certain infrastructure and rebuild contracts to term in the region. Iran starts destroying many of the US infrastructure. We got additional escalation there that leads to rebuild contracts. And then we have the final part of the negotiation, the 300 billion dollar investment in Iran. And also what happens with the choke points which are very, very important because if the US is exiting, which I think this is, then US can no longer, you know, protect the global trade and global sea. And so it was that 2023 agreement between Iran and Saudi Arabia executing over time in a strategic way. And that was because Saudi couldn't do Vision 2030 when there's lots of resistance and fighting and constant tension with the Houthis and so, and, and so they entered into normalization. Now what did Iran want? Well, Iran, if it's moving into this new vision, it needs a way of shedding what it had been backing and states becoming states again. And that's what I think we're witnessing. What did China want? China wanted energy security. It just wanted stability and diversification. It didn't want, you know. You know, so there's energy from Iran, there's energy from the Gulf countries and China wants it stable way of getting its energy. So the only way to achieve that is to unwind the sponsorship of resistance and, and stop executing the Mick model. Now some people get very offended by that. You know, I'm just saying what the money is saying. When you follow the money and taking out the emotions. I've always said if you put the humanitarian hat in, do I think this is right? Do I think this is Good. Well, I do think this is better than the make forever war model. And I do think the strategic tension between Iran and Israel changes the industry. I think it's disgusting what's happened in, in Gaza. I think what, what ends up will be better but it won't be justice. I think what ends up in Israel is the whole thing is just, you know, I've made my opinions very clear about that, but what I want isn't what is happening. And so what is happening is what we need to really focus on. So what happened this week anyway? Well, we got escalations in Iraq and we got escalations in Yemen and then we got the announcement from Hamas and the Gaza side. So that's the whole thing if you think about it. Yemen, there was an agreement signed with Houthis, now we escalate it further. There's joint operations between us and Saudi Arabia. They're not. Nobody in Iran is bombing Israel, which tells you everything. If this was something else, you'd expect significant targeting of Israel. And that means in my interpretation that, that the Mick and the FIC have come to a deal on what happens with Israel and Iran is executing what the destruction that is needed to get us out of the region. And then there is negotiations and we will find out exactly what the integrations look like slowly over time. So when there's re escalation with the Houthis in Yemen, that's moving towards that negotiation. When there's escalation with Hezbollah in Lebanon, that's moving towards that negotiation. When there's escalation in Iraq and the various resistance and forces that that is movement towards that and Iran is they everything to me looks very, very strategic while the world looks like it's going towards World War iii. And so I think it's interesting that Trump brought up that border peace. Now remember, the most important thing is who funds the Iran rebuild, the, the Gulf country rebuild and what the, the funding of the board and peace looks like and, or whether that infrastructure even holds in the end that determines what
was really happening here.
Excuse me, let me grab some water. And so the fact that that narrative is returning whilst the price of oil isn't escalating to anything concerning gold's not doing anything concerning yields are rising, then to me this means that everything we're seeing again escalate to de escalate bounded escalation in order to further towards a deal that changes the region and changes everything. And so the Saudi decided that it was going to be putting some pressure on many of the Iraq Militias here and Yemen operations continued. There was strikes from the Houthis in Saudi on energy. Energy did have a reaction, but nothing like what we saw before. Again bounded escalation then a reaction from Saudi as well. This is resolving all of the choke points. So the most important choke points straight or form moose within Iran and obviously Aman has a piece of that as well. So we also excuse my voice is
going a little bit.
I haven't do a Simon Dixon Hard Talk live for a while because I've been writing my book for those of you that don't know. I'll give you a bit of an outline of the book at the end. We're going really well. I'm really enjoying writing this book and I've actually even built an AI model
that I'm going to be releasing for
everyone as well that kind of allows you to take mickfic and tick subordinate and and sovereign pressures. Apply it to yourself countries and businesses because many people ask that in the comments. What's the best jurisdiction to live in? How do I prepare for this? What do I need to do? I've been feeding and looking at all of your comments under the YouTube video and in the Simon Dixon Hard Talk free membership portal as well. So keep that feedback coming. It's really helped me in the writing and developing the model and it's going to turn into something much bigger to really help people through this as well. Well, but anyway, that's why I haven't, you know, been doing as many episodes or they've been shorter episodes but there was a bunch of stuff happening and people were saying I really need to check in here. So I just wanted to keep people on track and give my analysis as well. So keep watching the straight of Hormuz. There was a proposal from Iman to run it jointly with Iran. Iran rejected it and that will lead to, you know, further what it looks like because Aman effectively is a proxy for the Gulf side and all interests will be considered and Iran will want to make sure it's got as much of its leverage as possible. But it will be in a regional way. So we'll see exactly how that, how that comes out. But I expect that they're probably negotiating where the FIC in order to get rid of the Mick, which then means you control Israel, the military industrial complex. They're probably wanting a piece of the action and so I reckon there's a FIC negotiation via Trump, there's a Mick exit via Netanyahu and then the Gulf countries and the sovereign wealth funds aligned with the FIC will be negotiating with Iran and Amman will be the conduit there as well as Qatar that has the relationship. And then eventually Pakistan is acting as a proxy for China right now because China has been investing in the Belt and Road initiative to counter IMF pressure. And so then we need to watch who's, who's in charge of Hormuz. It's Oman and Iran. And whatever happens there will set the, you know, the, the, the order that then leads to what happens with Bab Al Mandeb and the Red Sea, which then leads into Egypt and the, Egypt's control over the Suez Canal. So these are very, very important things that will, will come out. So what happens then? You get the escalation between Yemen and Saudi. So I'm expecting these are all moving towards resolution as a result of it. Who controls these main choke points? That sets very important indicators. So who invests in the rebuild? How is that structured and who ends up controlling the choke points? This will be the most important geopolitical change of our lifetime because it then goes out to all the different types of choke points as well. And marine sovereignty based upon your proximity to the seas that are no longer controlled by the US and then the FIC trying to get as much of it can based upon its leverage is really defining what's happening. And they're obviously renting out the Mick and the military to try and get as much leverage in those negotiations as well. But if it has toll taking, how that is executed, if it's service fee, how is that executed? Iran said it wanted to take payments in Bitcoin and it was building a bitcoin payment service. With this oil coming on the market, opec, what is it going to be priced in? Is it going to be priced in yuan? Is it going to be priced in bitcoin? Is it going to be priced in dollars? What is the mix that happened there? It can be priced in there, but it could be settled in other currencies as well. That then leads into the sanction removal and everything we've been covering over the months ahead. What are the GCC incentives as well? What are the Iran incentives? And when the GCC incentives and the Iran incentives and the FIC incentives all align, then you get escalation, escalate to de escalate and then a resolution. So we'll see what happens with the Houthis. We'll keep, you know, we'll keep watching that. And I believe that it ends anyway into a similar thing to what we saw with Hamas. In Gaza, but integration with the political process and the state army. But the end thing, what is happening here? Reduction of U. S Footprint. Wherever this happens, reduction of U. S Footprint. That means the middle east is becoming west Asia aligned with China while US Is handing off MICK to fic and FIC is trying to get as much leverage as it can through mick and they're negotiating with tick technology, you know, AI infrastructure, you know, AI data center build outs, Nvidia chips. This is what's happening when you really follow the money behind the the headline. Because US Is not a sovereign country, it is a FIC owned country that is able to leverage its mic and tick. I got to stop pounding on the desk. I think it creates a bit of a noise. I get a little bit excited as well. But then that leads to at the end of this, an integration into regional security. And we've already seen the makeup of that. The, the regional mick that has the industrial base in Turkey, the regional army, the strongest army being both Turkey, Pakistan and Egypt, the nuclear power of Pakistan and then the funding of the Gulf countries led by Saudi Arabia as the most important node and the integration into Iran that has the manufacturing base, the China relationships, the mic, the infrastructure, and then with sanction relief, the, the new rebuild contracts and whatever FIC alignment comes out of all of that. But anyway, I what we're witnessing right now, if you ask me, this is the dismantling of militant groups in line with an acceptable narrative in order to move forward with the regional stability network. So just a quick recap of my framework and how we describe this. Trump, I've always said, is a FIC node completely aligned with the financial industrial complex. Israel has historically been a mcnode and so in order to. But there's going to be more privatization of those military companies away from the state, which means that the state mcnode is moving moreover, gradually towards being a FIC node which is privatized global transnational capital. So these are different incentives and what needs to change? Well, Netanyahu needs to change. And so we will keep watching for what happens leading up to the politics in October, and that will tell us a lot. And we'll keep following the money around there. I expect that Netanyahu has negotiated his exit and there'll be a GCC aligned, but leading up to that there'll be lots of radical Zionist rhetoric that leans into the narrative that gets the additional negotiations and land grabs, more crimes against humanity. What's happening in the west bank is horrific. What's happening in Gaza still continue these war crimes. And we need to. On the humanitarian side, we really need to watch what is the end structure, whether it's border peace or whether it's something else. But who invests in the rebuild, how it's structured. And that will tell us a lot around what's really happening here once that happens. Okay. Anyway, follow the incentives, not the headlines. Right before we go over to the interview, I wanted to close off on some of the bitcoin stuff. So last week I released a blog, if you haven't watched it yet. Many people were asking me, what is Your position on BIP110? What's the game theory? Follow the money. So I did my follow the money analysis on both sides. Who's pushing it? What's behind it. I also went through the game theory and the different steps. I tied it to a lot of the history. It's a very long blog. But if you are a bitcoiner and you are, you hold bitcoin, then you should really get yourself up to date with what's happening with bip and bip110. I gave my reasoning for why I support it and I just wanted to give a timeline of what we're watching and what the next steps are. So we need to watch. Signaling is what we're. What is what we're witnessing. So last time during the block size war, there was signaling, you know, an alternative implementation was developed. It was called segwit2.x. I'm not going to go deep into this, but I want to make sure you understand that there was a resistance against that called User Activated Soft. Org. That's where the nodes got together and they use their node power in order to resist against a change that the big companies, the big miners wanted called SegWit2.x. And that was to increase the block size by 2 and also get a new change called Segregated Witness that would allow for what's called Layer two scaling,
so that you could have the lightning
network and various other things. But right towards the end, it wasn't right until the block when the miners changed their signaling and you had a capitulation from the miners. Now, I'm not saying whether that's going to happen or whether that's not going to happen, but that's what I'm going to be watching and that's what you need to watch. So what is the miners going to be signaling and what's the deadline? Well, there's going to be a, you know, there's a block that will happen around Probably August 7th we don't know the exact date because it depends on block propagation and how much hash power is behind bitcoin. But the most important thing is to watch what the miners do in terms of their signaling now. And in the, in the current version of Bitcoin you have to get 95% mining consensus with bit, with bip 110 it reduces it to 55%. I have my concerns about that. That's one of the things I do have my concerns about. But you have to get 55% mining consensus and what a miner is allowed to do if they contribute electricity to, to mining blocks and they get the block rewards and the fee. That's how bitcoin does designed. And then the rules are run by nodes. Anyone can run a node as long as nodes are cheap. Anyone can do that. That's half of the battle here. And the developers can implement the changes and you can. A BIT is a bitcoin improvement proposal. And so it's that triad or decentralization and there's always attack vectors to try and centralize parts of those. But at this stage what we look at is what the miners are signaling. And miners consist of those that are actually mining and they point their hard equipment and electricity towards a mining pool. The way a mining pool works is a mining pool is if you're mining, you want to make sure that you receive some bitcoin even if you don't, you know, if you don't win that block reward every time, you know, every 10 minutes when you're mining. And so a mining pool normalizes your income. You can point your hash power as a miner towards a mining pool. And those mining pools then have a port, an important power, you know, they can, then they can signal. Now the most important miners and mining pools are Foundry, which is connected to Digital Currency Group and Barry Silbert. Now they were behind segwit2x and they tried to concentrate all the corporate power in the lost in the last block war debate. And then they launched their own mining operations and foundry. So that is kind of the US corporate power aligned. Now today we've got micro strategy and we've got Blackrock and we've got bigger and bigger players. But they're, you know, kind of the corporate aligned part of the hash power and the, and the mining pools. Then you've got other ones which were mainly from what I call the China aligned bitmain. Jihan Wu, if you were around in the last block war, you know the large bit miners that produce the A6, they have the Mining pools and they engage in mining now. A lot of the mining went from China over to America. That created some of these big and that's why Foundry became more important. But this is Ant Paul. This is via BTC. This is F2Paul. These kind of came from, you know, the, the Chinese scene and have changed over time. But a lot of them were aligned with the historical big box. So these are the ones that historically had to do the last minute signal change. And in the case of which is the largest public companies and you've got Mara, which has its own pool and then Luxor and then you've got the resistance. And the resistance comes from Ocean. And Ocean has a very small minority here, about 1 to 2% percent. And obviously they're signaling for BIP 110. And so at the moment there is very, very small signaling. It doesn't really matter. If that continues as the way that happens, then this just moves on. We've got that block when we need to watch, which is around about August, August 7, which is just around the corner. And so far it's only really Ocean, which is connected to BIP 110 that's creating the resistance. Everyone else is waiting for the block and deciding where they're going to sit there. And so as I said, the threshold for BIP110 is now 55% and 55% signaling is the next step. So if it is activated, then after this block in September, we have the activation of BIP 110. Then the core developers, they decide what they're going to do and then there may be some resistance against it. And then this bip110 is a temporary soft fork for one year. And now whether that leads to a hard fork where you get a couple of coins, we covered that last week. That's the game theory. I don't really want to go through all of that right now. But the point is that this is what we're waiting for next. We're waiting for do we get to 55% signaling before that block, which happens around August 7th and if we don't, what happens after that? And so it is, you know, an automatic expiry after that one year as well if it's not renewed. So if we don't get that 55% signaling, then Bitcoin is unchanged and we look for what if there's another resistance that's built up and everything continues. And so that's the next thing just for us to watch. And yeah, and so we'll see. Does the debate continue. There are a couple of resistance that can come from that. If we do get the 55 minus signaling and it does activate, then we might get a user resisted soft fork against bip 110. That's not automatic. Or there may be another type of resistance attempt after this. Now we'll see. But all of those are possible. And there may be more possible opposition that organizes. But this is how the decentralized Bitcoin improvement proposals works and the developers are able to implement that, and then the miners are able to signal, and then the nodes are able to resist and decide what rules to enforce. So let's watch. This is how social consensus works. And the most important thing that I think came out of this is everyone having a greater understanding of governance and maintaining the fact that whenever miners get centralized, whenever nodes get centralized, whenever development gets centralized, then we have these resistance movements that then leads to a social consensus. Now there was one more topic, so that's what we're watching out for next that I wanted to cover. And that's what happened with ColdCard. So if you have a hardware wallet called ColdCard, there was an announcement that was announced that if you have a version of ColdCard, and I just want to go through what I saw here, please do your own research. I can't guarantee that this is accurate. You can't use this information to hold me accountable. I just want to make sure that this is under your radar in case you used Cold Card as your hardware wallet. And so what actually happened? Well, when you set up a hardware wallet, there is your Bitcoin is your keys, and your job is to protect your keys. And so you either give your keys to somebody else, which is holding them on an exchange, or a centralized wallet like Coinbase, or you hold your own keys. Now, if you don't hold your own keys, you don't get to participate, you don't get to run nodes, you are subordinate to whoever is holding your keys. And all the confiscation rules, bankruptcies, like what happened in the Celsius side, whatever can happen whenever you have some Bitcoin with someone else. So when you hold your own keys, one way of holding them is through a hardware wallet. And a hardware wallet just protects your keys and it gives you a way of accessing your key via a hardware wallet with a password on it. And it gives you also a way of generating what's called a seed phrase. A seed phrase is a way, a bunch of words that give you access to your key. And so if you lose your Hardware wallet, for example, your key is not on the hardware wallet. Your key is just a conduit, sorry, your hardware wallet is just a conduit to your key to protect it. But when you load your bitcoin onto a hardware wallet, you enter your seed phrase and your seed phrase is a way of getting through the key. Sorry if this is geeky and technical. I do have a completely free course that I did in the bitcoin, sorry in the Simon Dixon Hardtalk membership portal where I got Andreas Antonopoulos and myself and others to create a whole free course like eight videos on cold wallets and, and these types of things and additional security you can have on top. So you can head over to SimonDixon.com is completely free, become a member and you can access that course as well. But the, when you, when you use a hardware wallet, you've got a couple of ways of using it. You either already have the phrase the passphrase of a previous key or you use the wallet to generate it. And what apparently happened with cold card based upon the information that I can see the seed phrase generation tool that they were using unique to Coal Card, the seed phrase, basically it was called entropy, it had a flaw, there was an entropy floor and that's what happened. And I want you to go do your own research Anyway. So what actually what this meant is that some wallets were compromised based upon if they use this wallet to generate a seed phrase. If you didn't use this wallet to generate a seed phrase, then apparently you're not affected by this. And also it's a specific version because the wallet upgraded its version prior before that as well. So some wallets were compromised and who was it? So apparently the affected cold card was if you generated seeds between a particular time and I want you to go, don't rely on me for this. I just want you to point to this so that you can follow the threads and get the official updates from others that are following this. But if you imported your seed, then apparently you're not affected. So if you use between a particular date, if you got your wallet after, please don't quote me on this 2023, then apparently they made an upgrade that doesn't affect this. So it was those, I believe between 21 and 21 and 23 that generated a phrase using cold card. That's the specific attack vector allegedly there are. You know, the, the, the, the hack exploit was able to drain that based upon those, those exploits. Now other hardware wallets, they don't use apparently the same thing and again, you can't rely on me for any of this. This is you doing your own research. I just want to make sure that the information is in front of you. What I found out and what I've gathered from this because I wanted to give you some of the information. The seed generation implementations that Coldcard used at that time is what you should be checking for. Whether you know, there are different ways of generating those phrase. You can roll a dice and do it. If you did that, no problem. It is using that particular wallet to generate the seed phrase and that software is what had the compromise. So apparently what people say as well is that there's no similar vulnerabilities have been announced with any other wallets. Anyone else, it's, that's what it's been, you know, isolated down to right now. But what I want you to do is if you have a hardware wallet, I want you to ask AI about this, I want you to research some of the official announcements on this and I want you to ask your hardware wallet provider how you know, entropy is generated and how it's audited on their wallet and ask them specifically about this and grow comfortable with that answers. And so that's the piece of the exercise that I'd like you to do if you're using a hardware wallet. Now, what have they recommended? Well, what they've recommended and what Coldcard have recommended as well is to update the firmware and to generate a new seed and in a calm environment move your funds over after generating that new seed in a new environment. And this is an opportunity for you to go to the next grade of security, learn and ask the questions how was that seed phrase generated? How do I do it better? And you know and learn from this process. And that's the, the way to do that. Now before you send any funds, always do a test transaction. Whenever you send Bitcoin, it's irreversible. So you should always do a test transaction and then verify the backup. So that's your homework. Longer term you really want to be considering, you know, whether you want to use a multi signature setup. And we did discuss this in the, in the free course you can start seeing if this is an opportunity for you to do that. But this would have been protected. The other way is when you're generating your seed phrase, use dice in order to do that and you can start researching that. But anyway, these are the types of solution and the most important thing is to use this opportunity to learn bit more about key generation. And so that's what I wanted to leave you with anyway. And also a very important message. Nothing to do with Bitcoin.
This isn't a Bitcoin hack.
Bitcoin didn't fail. This is a specific implementation of a specific hardware for those that use a specific method for generating a key. And there's been a compromise which meant that those bitcoins were drained by by the hacker as well. Okay, so the types of things anyway, key generation matters. That's the the homework for you. Don't rely upon the one seed. Look at multi signature and let's close all this together because this is everything I've got for you until we move over to part two. So I'd like to close off by the markets. The reason that there was the wrecking of the hedge fund is because of leverage. And leverage is where you always get done borrowing against your Bitcoin using derivatives. It's the key tool of the financial industrial complex to get hold of your assets. So if you are using leverage, which I don't think you should be, if you are using leverage, make sure you never end up in a position where everything can get wrecked. That's the message from the hedge fund casualty because the FIC is ready to swoop up. Is this a leverage unwind or is this an AI collapse? I think we got further to go but we'll keep following the institutional capital in order to follow that as well. On the bitcoin side, watch bip110 over the next one to two weeks. What happens with those mining pools in the security side. Review your self custody setup. Understand your key seed generation is your homework and consider multi signature. On the geopolitics side, let's keep watching the incentives over the headlines. Don't get distracted by the headlines. People want you thinking that this is going to World War three. People think this is. They're analyzing it from the perspective of emotions. We are humans, we have emotions. But when you follow the money, it helps you understand the truth and it helps you take a step back. Watch the choke points. Those are the most important things. How are those resolved? What is the structure of it and who ends up in control of them. That resets the world order. Watch the Israeli politics leading up to October. Don't believe what they're saying. See what's happening in actuality and watch the evolving relationship between the FIC and the MIC in relation to the big investment contracts and rebuild contracts. That's what's going to set this regional transition. And the regional transition is still unfolding as my analysis has said because the markets is telling us that. And so that's where I want to end right now before we go into part two and the interview, right, what I wanted to do to cap off is I wanted to do a bit of a reveal on what the book is about and it's actually going to lead to another book because I wanted to really go in depth into the bitcoin side, but I thought it needed its own book. So I'm going to be revealing what this is about and I'd love your feedback in the comments and I'd love your feedback in the membership portal on SimonDixon.com now I'm gonna that my team, what they've done is they've taken all the feedback in the membership portal, given me a model and I've been feeding that into the AI when I'm writing my book. At the same time I've also built out a model that you're going to be able to use in terms of these different parameters. So let me explain the book to you a little bit more and then I'd love to get some of your feedback both in the comments and some longer feedback in the free Simon Dixon membership portal. So the book is called Game of Money and it's about becoming starting point, subordinate to becoming sovereign. And it's broken down into three parts and it's going to be 21 chapters, seven chapters per part, and each part deals with a different part of the game of money. And the goal is to give you all the tools that you need on this spectrum from subordinate to sovereign, knowing that you're never going to be fully sovereign, but give you everything you need on that journey and then really explaining it from real life experience has happened to me as well as using it to analyze events in real time so that you've got all the models and everything that I use. And then I've even asked AI to put together some models so that we can open source it and we can start to use it. And this will really help us in our Simon Dixon hardtalk lives if I give you access to those tools. So I hope you understand why me taking the time out and not following all the news. I gave you one today, but I've been taking the time out to really get this done because I really want to produce something useful in this transition because I do believe we're in a massive change. And so what is part one? Well, part one is about understanding the game. So I want you to understand chapter one is about defining the game of money. Chapter two is about the spectrum. I want you to understand what it means to be subordinate and what it means to be sovereign and what that actually means, what that spectrum is on every level. Chapter three, I then go through the financial industrial complex, the fic, and define it very specifically in terms of a model so that we can analyze power dynamic dynamics and we can analyze our subordination to the fic. In chapter four, I do the military industrial complex, the mic. In chapter five, I do the technical industrial complex, the tick, and I outline it very, very specifically, who the players are, what you need to understand, how to analyze them and how it relates back to you. Importantly, there's another thing I do in every chapter I gave. I give you a way to win the game. And by the end we have 21 ways to win the game. And then that builds into a model and a plan that you can put together in order to get yourself from subordinate to sovereign. So in chapter six, I cover the alliance. I talk about how the fic, the mick and the ticks and they. How they all work together and how they move together as one and how it doesn't require a grand conspiracy. Then in chapter seven, I answer that question, who's actually on top specific, the owners and the controllers, who are the people that really run the game and who runs the world? And I go very specifically into those dynamics and how they work together. And then that sets up everything into understanding the game of money. In part two, now we understand the game, we have to understand the rules. So part two is all about learning the rules. Now you know the rules. Once I know the rules, I then know how to analyze. And so it starts again with an analytical framework. In chapter eight, follow the money. This is the method and the, the method that I've been using. Then in chapter nine, we go through how it applies to each of the markets. So when I'm discussing on Simon Dixon Hard Talk Live, I may be discussing a number of markets. What are the real things that I'm looking for in getting an overview of what's actually happening in the market so I can follow the money. So chapter nine is about the debt market. Chapter 10 is about the commodity market. Chapter 10 is about the currency market. Sorry, that was chapter 11. Chapter 12 is about the bond market. And chapter 12 is about the equity market. I think I've messed that up. Anyway, you get the point. I do all the different markets. Chapter 13 is the Equity market. Anyway, and then it ends on chapter 14. The asset managers and how to read the asset managers so that you can then interpret what's happening with real money, the capital, as we always do. And so I've really defined all those there. But I've also done it with a live case study where I actually ran a model on all the different countries, many of the different businesses, all the key important nodes and individuals. And I stress test it in the model and ended up with a model that you can use because I've been inputting it all into AI in order
to build that algorithm.
And then we'll create a nice user interface at the end of it. Then in chapter so that's chapter 14, so we follow the money and then we end up with all the different markets and we test it in real time with real events that are happening right now. Then we move over to the third and final part. So you understand the game of money, you know the rules. So what's part three? Of course it's winning the game. How do you win the game of money? That's the whole purpose. Why do we try and understand all this? So chapter 15 is what I call the sovereign mind. I want you to have a framework for understanding how to see past conspiracy theories, see past psyops and see past media manipulation, political manipulation and really tune your mind to win this game. Because in the end it is a mental game. It is a that we need to win. So in chapter 15 we do the sovereign mind. In chapter 16 we go through the sovereign individual. So how to build yourself through that spectrum from subordinate to sovereign. In chapter 17 we go through the sovereign business and structuring and how to use those tools. In chapter 18 we go through the sovereign country and how to select your country and your jurisdictions that you can use. Chapter 19 we go through the sovereign assets, how to allocate like an asset manager and what assets make you more sovereign, which ones make you more subordinate and how to manage those allocations. In chapter 20 we go through the sovereign soul. This is the real game. This is what I really want to get to and make sure you have all the tools to get there. And then finally in chapter 21, we cover the 21 ways to win the game of money. And that brings you through the whole book. And what I said, I'm building out a. I'm feeding everything into AI as I'm reading it, building out an algorithm. And then I'm going to ask AI to build a free tool that we'll release out there for anyone to have a way of measuring continually your subordination and your sovereignty and how to what decisions you can make to go along that spectrum. So that's everything that I've been working through and I'd love your feedback on what you think about that, what you'd like to see, what you think is missing, what you think should be included. And there's two ways to do that. Put a quick comment down, but it won't be included in the the AI scraping or go over to SimonDixon.com create a free membership for you and I'll make sure you get priority notice. You get access to contributing to topics in the book. You get content that you can't get anywhere else. It's all completely free. You get that course on self custody and how to protect yourself from these different setups and situations and many of my previous content. And even a free copy of the book that I wrote in 2011 bank to the future. Protect your future before governments go bust. You can take the PDF, put it into AI and even analyze it against my latest book as it comes out. So that's everything I've got for you. Always remember, you are alive at one of the most interesting and exciting times in financial history. Some are going to get wrecked, others are going to do really well. I want to make sure you're on the right side of that change. And really the whole purpose of me writing that book, as I've covered in previous videos, was that 26 years ago my father asked me what happened to my money. He didn't know how the game worked, he didn't know the rules and he
didn't know how to win.
And so in this book I finally answer that question. He passed away before I got to give him the question. But it was in that passing, and this is the part of the sovereign soul that I really figured out what the game really means and the message that I'd like to pass on to him. And so in answering his question, I've answered the question for everybody that wants to follow me. And so if you want more people to understand the answer to that question, I ask you a favor. Please like this video. Please share this video with anyone that you think would get value from it. Please head over to download this on Apple Podcasts or Spotify or you can Download it from SimonDixon.com Join the membership portal. That's where I'm going to give you all the priority access and message you and make sure you've got all these tools available to you. Probably put them in the membership portal and figure out how we're going to deliver that as it happens. And in case I get taken out of YouTube. Make sure you follow me on Rumble. And if I get taken off Rumble,
then we're going to be doing streaming
from SimonDixon.com so make sure you got a free membership. I've been a bit quiet on X recently, but later I'll get back to giving some more real time updates on X, so follow me over there. All the links are in SimonDixon.com and in the description, so I hope that you enjoyed this. We've been taking smaller content. I wanted to give you a Simon Dixon Hard Talk. And now we'll move over to the interview where we delve into an insider inside the media machine, asking me some questions and sharing our experiences and why I believe that politicians are paid for rent prostitutes. Enjoy the interview and I'll see you this time next week on Simon Dixon Hard Talk Live with more updates.
Peace.
Politicians are paid for rent prostitutes. That was a quote that came out from me when I was invited by a media insider, an ex insider that was inside the media machine, James Delingpole, when he invited me on his podcast to apply my analysis as an ex insider of the financial industrial complex to all sorts of topics, whether it be Covid, whether it be the Russia, Ukraine war, whether it be the Iran war. We applied the model and I got full confirmation that that's exactly how the blackmail operations inside the media machine work.
James Delingpole
Welcome to the Deling pod, Simon Dixon. I've been really, I mean, I know I always say this about my special guests, but I have been really looking forward to having you on and I've been trying to get you for some time and I think you're quite popular. I follow you on, on Twitter and you generally say some pretty, I mean, punchy things, which I like. But before we talk about the financial industrial complex and the military industrial complex, because I'm dying to know what the story is on them, just tell me a bit about yourself, your background, how you came to doing all this.
Simon Dixon
Yeah, sure. I always tell my origin story, where it started, which was 25 years ago, actually 26 years ago now, when my father lost everything he learned his entire life for in the dot com boom and bust. And it was such a traumatic experience and I was 19 years old at the time that he asked me son what happened to my money. And ever since then I've done nothing but very unhealthily obsessed over finance. So the first thing I tried to do was get a job at the firm that he lost all his money from, which was a stockbroker called TD Waterhouse. And then I worked as a market maker on the London Stock Exchange. Then I worked in investment banking, taking companies public. And when I figured out how the game worked, I left in 2006. And I was trying to change bank. And I joined like the banking reform movements at this stage that were available. And that kind of drove you into a lot of the gold bugs and people that were discussing how money works and like the Austrian school of economics and various other things. But I realized that actually all the politicians are bought by bankers. And I also realized that the people that were investigating the financial crisis that came were the same people that came from the institutions that created the financial crisis. And so I realized that there's no banking reform, there's no political solution. What they teach you in economics is sponsored by banks. When you work in the system, you understand that no one really understands the entire cognitive. And so I tried to actually create a bank. And so we applied for a banking license with the bank of England to create a non fractional reserve bank. And they told us to apply. You need to put $60 million in the bank of England. Then you can't build a non fractional reserve bank. You have to build it on top of an existing bank that already clears into our system. And so then basically you couldn't build it. It was impossible to build a sustainable, what I considered a sustainable bank. And so that kind of left me in a, an air of hopelessness. And it was at that moment when I was invited to speak at the first bitcoin conference in Europe, when bitcoin was about $3. And I wrote a book called bank to the future, Protect your future before governments go bust. And we pivoted the company, banked the bank that we couldn't get a banking license for. And we ended up investing in many, many fintech companies and many of the largest bitcoin companies, over 100 of them. And as Bitcoin succeeded, we went through this whole journey really of discovering that the only way to change the banking system is actually to leave it as it is exit and leave it to implode. And so that kind of brings us where we are right now, where I'm writing my next book on this concept of everything I've learned from the last 26 years and how this financial industrial complex works. Because over that whole journey I was working with presidents like Bukele on the Bitcoin strategic reserves and bitcoin bonds. I got chased out of the UK by Boris Johnson and the bank of England.
James Delingpole
What do you mean? Chased out by Boris.
Simon Dixon
Yeah, I mean, he invited me to discuss how, you know, what, what types of financial innovation could be used in the uk. And I shared that we, you know, the concepts of equity, crowdfunding and various other things. And he liked the concepts. But then I told him about, like bitcoin and talked about a bitcoin strategy of how you can do it without the banks. And from that moment, the FCA contacted us. The company was called bank to the Future. He said he loved the name and he launched a campaign around how to fund businesses called Bus to the Future. And then suddenly our license was pulled into question. And so I ended up leaving, moving to Hong Kong and reincorporating the company with foreign regulators and never returned to the UK since. One of the things I did actually was supporting the Isle of Man in making bitcoin legal tender. And the government actually did it. But just as the implementation phase came, they passed, they started updating the laws and then the bank of England contacted the government and said, if you do this, then we're going to remove the clearing to all of your banks on the entire island. And so they weaponized the Manx pound through its clearing into the bank of England in order to make sure that none of it actually happens. So really, for 26 years I've been in a battle against the banks and now I just sit outside the system to the degree that's possible and try and help people become more and more sovereign and free from the forces that bankrupted my father, really.
James Delingpole
So it's a cheeky question, but I mean, are you worth squillions?
Simon Dixon
I don't disclose my net worth, but
if you look back at my YouTube channel, the very first presentation I gave at that bitcoin conference, I've been telling people to buy bitcoin every single month regardless of price. And Bitcoin was $3 at that. And I still follow this advice to this day.
James Delingpole
Oh, what's it, what is it worth today? About. Is it 60,000, something like that?
Simon Dixon
Yeah. So the all time high is $125,000 and it's now at about $63,000 last time I checked.
James Delingpole
And is it going to, in your view, going to go much higher than $120,000?
Simon Dixon
I really don't like to say that,
but the properties of bitcoin are properties that I believe in. There's a fixed supply. There's only ever going to be 21,000, 1 million of them. And every single year ever since I've been involved, people discover new reasons why they need to own their own money without a bank in the middle that can censor your trend. They discover more and more reasons why they need to be able to spend money peer to peer without a government telling you how you can spend your money. And they become more and more reasons why they understand the value of a fixed supply asset. That no one can change a monetary policy and there's no central banker or centralized authority. My thesis is that every year that becomes more and more useful. But the price is determined by how many people want to buy it versus how many want to sell. And that changes all the time.
James Delingpole
So I don't want this to be an incredibly involved bitcoin conversation because I think we've got more interesting stuff to talk about. But are you not of the view. Well, you're obviously not of the view that bitcoin was always created by the same people we're railing against in the banking system and that they've got a back door, that somehow they can rig that one too. And it's all part of this transition to CBDCs, et cetera, et cetera.
Simon Dixon
Both, actually. So I have a nuanced view. I do believe that the predecessor to Bitcoin was Digicash and that tried to create private currency on top of the banking system. It was shut down. It was founded by a guy called David Chom. If you look at David Chom, he was a teacher around cryptography in Netherlands. And one of his students was a guy called Len Sasserman, who I believe to be Satoshi Nakamoto. And Len Sasserman was assassinated. No, sorry, let me get that right. Committed suicide one month after the first developer went to meet with the CIA. Gavin Andreessen. I believe that bitcoin was a breakaway project from what's being built today. That the goal was to follow the work of digicash, which was shut down because the banks were able to shut it down and build stablecoins and central bank digital currencies. And Len Sasserman, who I believe to be Satoshi Nakamoto, that's my opinion. I couldn't prove it. Released a white paper that showed how you can make it fully decentralized, where you have miners that can be anywhere in the world that can mine the new supply. You have open source code where any developer can contribute to the code in an open source project. And you have the rules being enforced by nodes, where anyone can run a node and enforce the rules. And if you ever want to change a rule, you have to submit an open source contribution the miners then need to mine it and the nodes enforce the code. That's impossible to have a backdoor when you understand the architecture. And so I believe that bitcoin was a breakaway from what they are building today, which is the digital surveillance grid, which is stablecoins and central bank digital currencies and bitcoin get that exit. And if you look at everything that's happening today, they're really trying to centralize as much of that bitcoin as possible in Wall street wrappers because they don't want you to own it in self custody the way that bitcoin was originally designed. They want to hold it for you because they want to do to bitcoin what they attempted to do to gold, which is create a paper version of it so that they can manipulate the short term price. That implies to me that bitcoin in self custody used the way it was originally designed was not something they wanted. And that's why I believe it was a breakaway project and why it was released as a white paper.
James Delingpole
And that's why Wasserman committed suicide.
Simon Dixon
Well, you know, I don't wish to say that because he does have living family today and his family denies that he's satoshi. I just find the sequence of events to be the most compelling case. And I've spent, you know, I got involved in Bitcoin in 2011, so I spent 15 years and invested in 100 companies in the sector and met many of the early developers at a squat and old street in London when it first came around. And to me it's the most logical story, but I can't prove it.
James Delingpole
Yeah, I was quite, I mean I got into bitcoin when it was about $300. I can't make the $3 boast. And I got into it because I wanted to be able to buy weed off the dark web. I think a lot of the early adopters of bitcoin came into it that way.
Simon Dixon
Yeah, so Silk Road was really the first use case that got adoption. And Silk Road, there were a couple of use cases that got the early adoption, which is where bitcoin gets its reputation. When you create money, you can own money, you can spend then all the use cases where censorship exists the most is where people tended to use it in the early days, which was buy things that government says you're not allowed to buy online, which was Silk Road. And also Satoshi Dice was one of the early use cases where you could trace on a blockchain whether the gambling site was rigging the game and so you could have transparency in terms of the odds, and you could basically pay poker and gamble with bitcoin in a way that made it transparent whether they were rigging the game. So these were like the early cases. Interestingly, the founder of Silk Road, Ross Albright, yeah, he was recently pardoned as one of the first things that the Trump administration did. And, you know, it's a very interesting full circular story that we're. That we're witnessing right now with some of these early use cases.
James Delingpole
I always felt very sorry for Ross. Is that how you pronounce it? Albright.
Simon Dixon
Ross Albright.
James Delingpole
Yeah, I always felt very sorry for him. But was my. Was my sympathy misplaced? I mean, was. Is he a goodie or is he. Is he secretly another part. Part of their system?
Simon Dixon
Pick your flavor, really. Some people believe that, you know, he was a freedom fighter, a libertarian, and people spent their life trying to help him get out of prison, which he achieved, you know, and, you know, others would say he was in America while launching the Silk Road, and he was located right next to the FBI head office. And so whether it was a honeypot, you know, in bitcoin, we often have. We're a very skeptical community because we study how the system works, and we've been constantly under attack by intelligence agencies and infiltration operations. And so people will have different theories. And I don't have evidence either way, but I think if you live in a country like America, it's a bit stupid to break the law and be next to the feds and be in a position where it's quite a suspicious story, put it that way. But either way, I can only speculate.
James Delingpole
Yeah, you mentioned the bank of England earlier on. I suppose that's as good a way as any to. To start. Who owns the bank of England? I mean, it's not us, the people, is it? It's not the British people.
Simon Dixon
Well, actually, so it was created in 1694 when William Paterson, a private bank, wanted to lend money to King Charles. And the collateral that was used to form the bank of England was created out of thin air. And it was rehypothecated, and it was a £1.2 million loan. And really it was a mechanism for allowing for the funding of war. So there was a very nice cozy relationship between the bank of England, the British East India Company, and the government, the Crown, and that was that the government needed money for funding war without going to the people and trying to issue bonds, because it's very unpopular to go to war, and people think it's a waste of money. And so it's very hard to raise finance when you disclose the war that you want to go to. Plus much of it was for mercantilism to steal other people's gold or rage opium wars and get Chinese addicted to opium, or facilitate transatlantic slave trade, or steal India's gold and pretend you were exporting tea when you were exporting drugs. You know, these things aren't very popular, and so you need a private company to do that, which was the British East India Company. And the bank of England was the mechanism for obfuscating how people were losing value in their currency. And they could raise finance for the war and then it could leave the debt on the government, but transfer the wealth over to the British East India Company. And so it was a modern form of what we have today, socializing losses and privatizing gains without the people knowing that there's this very elaborate money laundering scheme happening through these institutions. Now over time, under Gordon Brown, it was actually nationalized. But there was also another company, if you look up on Companies House, called the bank of England Nominees Limited I can't quite remember, it's a long time since I've looked at this. It's all from memory. But the important part is that the government can own it and be the shareholder. But there's a nominee company where those shares are not disclosed, which could point back to legacy financiers, or it could point bank back to the Crown itself. These aren't disclosed. It's a special type of company. But the most important thing is that the institutions that get to create the fiat currency where the bank of England socializes the losses and privatize the gains are all located in a special jurisdiction called the City of London. And the City of London is a different country in itself, with its own laws, with its own thing. And even the Crown needs permission to enter the City of London. It's a square mile with 700 banks and financial institutions and it's actually got its own jurisdiction, not to be confused with London or United Kingdom or England. And so you see these halos, like the Vatican with the Vatican bank where much of the drug dealing and laundering happens. Switzerland with the bank for International Settlements, which was set up in Post World War I to manage the reparations connected to Rice bank, the German central bank that also funded the Hitler regime and fascism, as well as many of the wars like the Bolsheviks, to overthrow and install the Soviet Union in Russia, as well as create the Federal Reserve with the Warburgs in America and so these same legacy institutions were there in order to finance wars, launder money and obfuscate it. The reality of this happening, and that still is a structure that I believe exists today. But mainly the bank of England feeds up to. They're a shareholder in the bank for International Settlements. And the largest shareholder for the bank for International Settlements is the Federal Reserve. And the Federal Reserve is owned by the clearing member banks that are all public companies. And their largest shareholder is BlackRock, State street and Vanguard, if you follow the money.
James Delingpole
Yeah, that sounds labyrinthine, presumably by design. Have you just described the essence of the financial industrial complex?
Simon Dixon
What I call the financial industrial complex is a set of institutions that are aligned by incentives, whereby the incentives enforce the power structure. And so rather being like people, think of it as like a committee of 300 in a room that determine whether there's wars or there's not wars. And it's more of like an organized cabal. I follow it from incentives and gain theory. And so central banking is absolutely the root of the system because it socializes the losses and privatizes the gains. It sets the price of money that determines when you can rug pull the government and move to a new order or not. But you can use it to asset strip the economy for everything it's worth. And you can load the government up with debt and privatize all the gains. That process consists of a new a series of financial institutions. The private commercial banks create the fiat currency. They create money every time they issue a loan. And it's a Ponzi scheme. There's not enough money to pay off all the debt they create, so you have to roll over the debt. In order to roll it over, you need to basically securitize and financialize every business. That's what the investment bank does. It turns them into public companies. Then you can install your own boards and then the executives work for you. You need to control the price, which is the hedge fund industry and the derivatives market. There are many times more derivatives than there are underlying products, whether it be shares, whether it be commodities, whatever it may be. You also have the asset managers. They pour together everybody's money and then you give them your voting rights and the ability to install a board. And so then through these funds they
get to allocate all the capital.
And so right now they control 50% of all the capital that's allocated through ETFs. And so the financial industrial complex, the institutions change, the power changes based upon how many shares you own in the system. But the financial industrial complex Remains and it sits above governments, in fact, it controls governments. So the financial lobbies are some of the most powerful lobbies and politicians are just paid for rent, prostitutes. The power changes based upon, you know, how many shares you own in the system. But the financial industrial complex remains and it sits above governments. In fact, it controls governments. So the financial lobbies are some of the most powerful lobbies and politicians are just paid for rent, prostitutes. And so what you do is you create a network of non governmental organizations and think tanks. You write the policies, you sponsor the politicians to get your policy through through lobby financing and then you change the laws through whether it be House of Lords in the case of UK or whether it be Senate in the case of US and through some of the companies under your structure. So think of all the companies are public. Many of them are military companies. Those military companies like Lockheed Martin, BA Systems, General Dynamic, they have access to what we could call the deep state, CIA, Mossad, MI6. And so through these intelligence networks, they're able to launch covert wars and overt wars as well. But you can control these processes through access to capital. And so most of what people focus on is their focus on a power structure that is subordinate to another power structure. We all whinge and moan about the government, we all whinge and moan about Keir Starmer, Rishi Sunak or Boris Johnson, when really they answer to greater powers. And Liz Truss in the case of the UK found that out very easily when the bank of England said, no, that's not the right policy. Even now we've just had another regime change. We've had seven regime changes in 10 years in the UK. And Keir Starmer, you know, what was his contribution? He mainly prior to being the President, Sorry, Prime Minister, I get the two a bit mixed up. I become a bit too Americanized here. The Prime Minister, you know, he tried to take down Julian Assange, which was revealing all the crimes against humanity that the military industrial complex were committing in the Middle East. And he tried to put in a sex offender allegation on top of Julian Assange. Now, what was Keir Starmer's biggest contribution and most impactful policy? Well, of course it was spreading the lie that Britain is defending democracy in Ukraine while it laundered significant funds up to military contractors that they're still doing to this day in order to prop up the stock market and value of many of the military companies while the bank of England printed the money. And we use the country as a collateralized debt obligation to issue IMF debt so that BlackRock ends up with all the resources that Russia doesn't have left. And he'll fight that to the last Ukrainian. And then we just get another regime change when people start to figure out the jig. And so now you have a white nationalist uprising with Rupert Lowe or Nigel Farage, and everyone says it's the immigrants why this is happening. And they create a new other and a new story and nothing changes because you're always looking at the other or you're looking at the politician. When the politician is a prostitute for real power. The financial industrial complex.
James Delingpole
Yeah. At what point do you reckon in their careers do the politicians realize what the game is? I mean, Boris Johnson, for example, do you think he always knew what the deal was and was just waiting for his turn at the trough when he became prime minister? Or do you think it came as a shock to him to realize. Now, hang on a second. You don't get to make decisions that you're in hock to this, to this labyrinthine system?
Simon Dixon
I think both. So they groom politicians. So if you look at, for example, J.D. vance, he was groomed by Peter Thiel. Peter Thiel is part of Palantir, the Technical Industrial Complex. The police and surveillance state. Other nodes that Peter Thiel was connected with is Elon Musk and David Sachs, all people that were involved in the PayPal mafia. So they represent a faction of power like the Technical Industrial Complex. They're subordinate to FIC as well because they need access to capital. But you groom them. So sometimes you make J.D. vance. You give him a new name that's not his name. You give him a venture capital.
James Delingpole
What is his name?
Simon Dixon
I can't remember. Off memory. I'm sure AI will tell you what his real name is, or people could put it in the comments, but that was his stage name. And then he was given a venture capital fund and he was made vice president. And at what stage in the process? Well, they align your financial incentives. And I think the higher you go, the more compromised you become at a faster rate. This was really one of the many operations we focus on Jeffrey Epstein. But there are many more. Jeffrey Epstein is just one of many. These are network bratmail operations to compromise people. And it starts small. You finance someone's campaign, then they have to try and get your policy through. If they successfully manufacture a narrative that they pretend they're working for the people while they're working for the lobby, then they become more useful to power. And so then you climb those ranks or you stay exactly where you are. As you climb the ranks, you maybe they introduce you to a handler, and then maybe you need more financing in order to get to the next stage of your political career. Maybe they can make you participate in an activity that compromises you. Maybe you don't participate. There's unwritten rules and incentives until eventually you're very useful to power. At that stage you can become a prime minister and a president. And if you ever go against it, you either don't get access to the capital, the media machine comes after you and tears you down, or at the extreme, you get JFK'd if you take on the military industrial complex. And so they've got a number of tools and they don't use the most extreme tools. But I recognize this, when I was in investment banking, I could see very early what I needed to do to climb the ladder. And it's just an incentive mechanism that compromises you until eventually you have the share options in the bank and you're an executive on the board, and then you're preserving the power structure that pays you. And you're more and more compromised the further you rise.
James Delingpole
So what, what, what did you have to do or what would you have had to do to get on? What kind of things?
Simon Dixon
Well, you know, they test you. So, you know, firstly they take you to parties. And those parties, many of the higher level performers, your managers, they'll be participating in drugs, narcotics, maybe there's women that are offered, maybe it leads to prostitution. If you take the bite, then you're probably indoctrinate. You know, it's like a mafia, right? The first thing you have to do to join the mafia is take someone out and you have to put the tattoo on that identifies you. You know, these are indications that you're, you're willing to do what you're willing to do in order to climb the ladder. And you can see the things. It's either financing, it's either incentives to get higher salaries, it's share options, financial incentives, and then they get more and more seedy. The higher you want to go and the more you want to be initiated into the power structure where you're someone like Jamie Dimon and you're actually a Jeffrey Epstein's banker at that stage, then you need to be more and more compromised.
James Delingpole
Well, how deep does the compromise go? I mean, are we talking sort of satanic ritual stuff at the high levels?
Simon Dixon
Well, how is the deep state and the intelligence operations funded? They're funded off balance sheet. It's money that you have, money probably about 5% of their money comes from national security. The bit you can put on the balance sheet, that's acceptable, the 95% comes from black ops. What are those black ops? Drug trafficking, human trafficking, weapons trafficking, sex trafficking. And those operations are as seedy as you want to get. And we do know, I haven't spent too much time on like, you know, these, these types of satanic rituals and things. But to me I try and think of it in terms of yes, there could be people that are like that, or there could be a machine that encourages that type of behavior in order to get to the most compromised and the highest levels of power.
James Delingpole
What are those industries worth? I mean, are they worth more than the non black economy if you add them all up?
Simon Dixon
Well, I mean we're talking, you can look at the biggest markets in the world. You've got what we know, the stock market, the bond market, the FX markets. I couldn't put an exact number on the size of the black markets. But we do know that the incentive structure of all these markets is because they're protected by intelligence and it's actually a vital part of their funding. How anyone could ever put a size on this, I don't know how anyone would come to that number. But you can read there's many books that have been written in terms of how these operations work.
James Delingpole
I get up to a point that this system has been created and it doesn't really matter which individuals are in place because they're dispensable and they could easily be replaced by another individual. And the system attracts aggressively ambitious, morality free scumbags.
Simon Dixon
Basically I'd say, I'd say they manufacture them. So you could start as just ambitious and by the time you're at the top you're engaging in activities you never imagined you would participate in because it is a process of incentives and manufacturing the type of person that they need in order to preserve the power structure.
James Delingpole
And the people who say no just end up being booted out or not making it not made a senior partner or whatever.
Simon Dixon
Yeah, regime change. Stuck at a lower level of the career path. Addicts extreme, expelled, taken out. Depends what you know.
James Delingpole
So what was it in you that made you resist this process? I mean, did you, did you have, did you watch all your contemporaries going yeah, I'll, I'll take that, I'll take that prostitute, I'll take the, the line of Charlie, I'll take the whatever.
Simon Dixon
Yeah.
So you know I've, I would say that my, my mission I was driven by was trying to help my father Figure out how he'd lost his money. That was like my driving force.
James Delingpole
Yeah.
Simon Dixon
And I think. I think some lucky accidents. So I told you, like, certain things. Firstly, there were books that I read that helped me understand the system early. So I read, like, books like Michael Rao Baltham's, which is Gripper Death. I read a lot of the books, like Confessions of an Economic Hitman and various other things. So I was able to see the system through reading and then. And then kind of have an indication of where this goes.
James Delingpole
Yeah.
Simon Dixon
And I'd say that what I've learned
is there's kind of three types of people, and it's very difficult to become one of them. And I was blessed to be able to become one of them. There's one type of person which is somebody that's broke, in debt, lives in a country with freedom of speech, and can say all this stuff, but they just yap on the Internet and they have no power and they're subordinate, they're in debt. The system doesn't mind those people. Sometimes you have, you know, censorship regimes and various other things, but right now they'd rather just have your social credit score and have you talking so that they can build a profile of who you are and what you think so they can weaponize it through your social credit. But the other type of person they don't mind is somebody that's captured rich and wealthy. And so if you preserve. If your wealth is attached to preserving the system, they don't mind you. You know, Elon Musk can become a trillionaire, but all of his wealth is based upon borrowing against his stock and then preserving the value of that stock. And him getting a continuation of defense contracts for the military and then providing the data that the intelligence apparatus need to build these social credit scores and control grids. And so as long as you comply, you get to pretend you're the world's first trillionaire, and you get to build things that you can resist against it. But when your wealth is based upon, when your net worth is determined by the preservation of the system, you're kind of just not incentivized. So what they don't want is people that build wealth outside the system, they're not incentivized to preservation of the system that can actually have enough wealth to influence politics or enough of a voice to influence change. And if you do have some of those, there's just not that many of them where the sum of the whole system has more capital, more money, and more power than any of these whistleblowers or breakaway people, you know, these wild cards I call them. And so they don't mind a few wild cards. They don't mind loads of people that have no power, that just re, that just talk. And they want, they want to make sure that the majority of the wealth is captured. And so those are the three types of people. Now the reason they want to capture bitcoin and gold and various other things is it allows you to build wealth outside the system. And when you build wealth outside the system, you can become that type of person that they don't want you to be. And so they'd rather you have a Bitcoin ETF or a Bitcoin treasury company or borrow against your bitcoin through a loan or invest in some shitcoin scam that they created through Silicon Valley that we're told is the next bitcoin killer. They want you gambling degenerate, short term thinking, borrowing leveraged. They want you to have leveraged wealth and then they don't mind because then you're captured into their system. So wealth outside the system is the bit they don't want. And they don't want a lot of people. They can handle a few.
James Delingpole
Well, literally they don't want a lot of people. I mean they want to kill us one way or the other, whether it's war or vaccines or whatever.
Simon Dixon
Yeah, I mean look, there's, there's different agendas here as well. So when we say they, there are lots of competing agendas. Their game is ruthless. If you're trying to climb to the top of the mic, the military industrial complex, the tick, the technical industrial complex or the fic, the financial industrial complex. These guys are ruthless. Like they're playing a game against each other. They're trying to survive and provide more value and power. But the, what is really measured by is I'd say at the very top of the chain is assets under management. And right now Blackrock's winning that game. And so, but they're playing a ruthless game as well. They can be taken out, you know, in, in their play. So they have to, you know, you're, you're, you're not going to be taken out if you're not that important, put it that way, you know, and they, and right now the game has changed because I think it used to be like the American empire was built upon military power like the, the mick. But when we left the gold standard, the FIC dominated the MIC because there was no constraint on government spending. And so FIC financialized everything from that moment, then it became like the petrodollar and the backbone was energy. But now we're moving towards algorithm and data being more important, which is the tick. And so really the tick just wants data. And so we used to be under an agenda of censorship and control of media. And you still have those operate. You know, the traditional media is still controlled by its sponsors and the capital markets that it serves. The alternative media is really more, it's more, it's more powerful because you can incentivize the speech that you want through algorithm. And so rather than giving people, you can give people freedom of speech, say whatever you want, but we won't give you freedom of reach. To get reach, you need to say what we need you to say. And we can also radicalize you through what content. We give you into the most radical version of yourself. And then we can compartmentalize you into a box. Your far right, your radical left, your anti Muslim, you're anti Zionist, and they compartmentalize you into the most radical version of yourself by continually feeding you content that reinforces the most radical version of you. And then you just point at the other. It's a classic divide and conquer strategy. Then you can manufacture civil unrest when you need to. And when you manufacture civil unrest, you've already got the legal documents. Just like before 9 11, they already had the Patriot act written, which is why they needed 9 11. And just like Covid, they already had the Fauci operations in order to fund these bio labs in Wuhan that are now releasing the documents with Tulsi Gabba right now. And they already had the vaccine. And who did we have in our leadership? We had Boris Johnson that administered the shutdown. You had Rishi Sunak, who was the largest shareholder via his Indian investments in the ones that were profiting from the vaccines. And so you can see how the politicians match the policy. But there are certain policies which are written by think tanks and non government organizations. One of those in 1968 was the club of Rome. It was a particular think tank and one of their agendas was a belief that you need depopulation. There's also a coincidence of ones right now. Today we have demographic issues. There's not a large enough taxpayer base to pay the boomers that are now retiring. And we have a pension crisis. And so there's only a couple of ways of solving that. You either make a way of increasing birth rates, which we're going in the opposite direction. We're going extinct, with the exception of Africans, Middle Easterns and Southeast Asians. Everyone else, their birth rates are decreasing to the point of extinction, no replacement rate. So they're supplementing it through the manufacturing of wars, rebuild contracts and immigration crisis. So you can increase the tax base through immigrants. You can then use that to build a police and surveillance state by creating radical versions, racial tensions, religious tensions. All the things where you're saying, why is my life so much worse? It must be because they took my job. So you can, you can point to the other, but what you really want is what we're getting here. What Trump gave us, the genius act, the big beautiful bill, the clarity act, the programmable police and surveillance day which was already beta tested through the Palestinian laboratory, the integration of drones into Ukraine with artificial intelligence and Palantir, the pre crime arrest technology that was implemented throughout uk. The border, open border, closed border that ran across Palantir with the Biden administration and Trump administration, the crowd control that was used in Hajj in Saudi Arabia and all these different things that you can see. So the club of Rome was a particular think tank. It doesn't mean that they ultimately rule. It means there is policy that is written that involves believing a belief, an economic theory that you depopulate. And so I would argue that Covid, whether coordinated, manufactured or real and weaponized, whatever you want to believe, fulfilled a depopulation agenda as well as profiting from the solution, as well as manufacturing the problem, which we know was a bioweapon via Ukraine into the Wuhan lab, funded by Fauci and the intelligence apparatus.
James Delingpole
Yeah, but the whole Fauci biolabs thing and the biolabs that are all in Ukraine, etc. Etc. This is just another, it's designed to kind of fool a certain section of the populace into thinking there really was a virus and that there wasn't a lab leak, was there? That's just another bollocks theory they put out to try and sell the narrative.
Simon Dixon
Well, I mean, I don't like to
get too deep into subjects I'm not an expertise in. What I do is I follow incentives and leave the experts to determine was it a thing, Was it not a thing? Because there's different beliefs. You could manufacture the thing or you could make up a BS narrative that the thing was and put a death counter on the media and scare the hell out of people into thinking if you leave your house you're killing, you're going to kill your grandma. And then you radicalize people into, you know, staring at the TV every day watching the death counter and you know, think back to your time, right? There was a day when you were told you must social distance, you must get a jab, you must not leave your house. And you were watching the number of deaths go up every day. That was a very traumatizing experience for many, particularly people that believe that the media is the truth, not just an agenda that's funded by policy. And so just. But remember, we all remember. I remember that day. Do you remember that day when one day we were told that if we don't get the fifth booster, like we're going to kill our grandma. And then one day Putin invaded Ukraine and suddenly we were able to go out and protest and do whatever we want to defend democracy. And Covid was no longer an issue and no longer there was no death counter and all we were fed is Putin is Hitler and that we're defending democracy. So the media in one day went from if you don't get this jab, you're going to kill your grandma to go out and protest and defend democracy because Putin is a crazy. And guess what? You need to print billions of dollars while there's homeless, drug addiction, wealth inequality, problems at home. But you need to give it to Ukraine and you need to put a flag in your bio and you need to. And if you're not, then you're an evil killer that supports communism and you're a radical lefty that believes, you know,
and you can see that throughout our
life, 9, 11, the manufacturing of terrorism. So you can see these false flags throughout your whole life. And now what I don't try and do is say this is definitely how it was because these are pretty complicated things and if you go deep into one of them, you can either weaponize something that happens because you radicalize people so much, or you can do a covert or over operation or you can just manufacture a media narrative that makes people believe it. And all of those have been used. And you won't know this. Like right now we get all the declassified CIA documents from Operation Ajax, Operation Gladio, where they manufacture terrorists, Operation Ajax, where they do regime change in Iran. You get all these when it's too late, when it doesn't really matter. And so we'll get these declassified documents and then they'll also be declassified where you black out the bits that hide the power structure, just like we had with the Epstein files. You know, you don't get the actual people, the JP Morgans that settled with the, with the victims. You get the version of the assets that are being taken out rather than. And the Power structure still prevails. And then everyone just focuses on that when it's too late to matter. And then you build your social credit score by talking about it. And then they weaponize that against you in order to usher in this police and surveillance state and put you in a blocks and make you more radical.
James Delingpole
You gave a good example there of this. A thing that makes absolutely no sense where as you say, one day it was wear a mask, take the vaccine to save granny, the next it was we must join plucky Ukraine's fight against evil. Putler. And I remember I don't read the newspapers anymore because I too had an epiphany and I realized that the whole system was corrupt. And I was looking at the front page of my wife's newspaper and it was boasting about the fact that British made Storm Shadow missiles had been used to attack some Russian targets. And the thrust of this piece was it was clear that it was expecting of the reader that the reader should be excited by this blow that Britain was striking. And I was thinking, hang on a second, when did we declare war on Russia? Where is this money coming from? I never recall being asked whether I wanted my money spunked on a Storm Shadow missile. Now that's my reaction and presumably that's your reaction as well. How is it, given that it is so obvious when you look at it, why do people not see it?
Simon Dixon
Well, there was another operation called Operation Mockingbird. And Operation Mockingbird is when the CIA took over the media in the case of the US and they created these different media outlets that would cater for your, your people. And so whether it be CNN on the left or Fox News on the right, they would make, they would distract you with believing that your side is right and everyone else is crazy. And they would distract you with politics. So you look left and right at all times. Labor, Conservative, Democrat, Republican, Communist, capitalist, you know, racial tensions, religious tensions. And it was to distract you with everything but what was real, what would actually matter. And the other thing it did is it created deliberate operations to mock people that would ever expose this. This is where the term conspiracy theory came from. The term conspiracy theory came from the CIA in Operation Mockingbird to call anyone that exposed the system a conspiracy theorist. So then it would make you into a category that was very unsociable and undesirable for you to be ostracized and compartmentalized. And then they did other things. They would take the reveal of the conspiracy theory and make it deliberately crazy and kooky so that you Sounded like, you know, a 911 truther. Where there would be, you would, you know, there would be theories out there where there's a fake plane and someone was drying it on a remote control. Or they would, they would make the conspiracy theories more and more radicalized and they'd use people like, you know, whether it be Tucker Carlson or something, whether people know who they're working for or Alex Jones.
Half the time people don't know who
they're working for because it's an incentive mechanism with sponsorships and various other operations. We saw Alex Jones, you know, $47 billion settlement case. Then he comes back as a new
person, you know what I mean?
These so.
James Delingpole
Well, that was, that was the moment I knew.
Simon Dixon
This is psychological operations at the highest level. And so it is all based upon your desire to fit in, to not be ridiculed, to not be cancelled. And you are, as soon as you're born, right, it happens at the education system. You are downloaded a set of history that was written from the winners of the history. You then go through a university system that downloads into you a set of beliefs that you start to think are your own. And then it happens with politics, the media downloads into you a set of beliefs and you start to find your side. Maybe it was allegiance with your father, maybe it was allegiance with someone influen. And so you think that you came up with your beliefs, but they were downloaded like an operating system into you.
And you can tell, because I could
take someone when you understand these different compartments that for example, hates Islam and I could tell you who he supports, what party he's on, all the other beliefs, whether he supports Israel, whether he believes resists. You can have a menu of what they believe in based upon them telling me one thing, because I knew that that belief system was manufactured and operated and that person will defend it till the end. They believes it's their belief. But no, you predictably believe a set of things that when you understand these patterns, I can tell you all the other things you believe in. Because it was an operating system that was installed into you through psychological operations. And you never decided, am I that religion? Do I believe that? How did I become that? Where did I learn that stuff? And so the process of becoming your own person is actually a multi decade unwinding process of relearning all history and touching upon the hardest of questions. So it's very difficult. Like the vast majority of people, they're too broke figuring out how to pay their credit card debt and why their family now needs three People to work and why they're feeling like a demasculated man that can't look after their family, that's deep in debt, feeling, you know, just feeling a bad version of themself that distracts them.
And that's what I'm saying. They want these people.
They want people captured, people that have no power that can say what they want.
But there's very few people outside the
system and have the time and financial capacity to recognize why are we where we are? Why? Why is this happening? And then you get ridiculed as a conspiracy theorist and compartmentalized. So it's a very sophisticated system. It's quite remarkable when you think about it.
James Delingpole
It is very sophisticated. I was going to ask you something because something you mentioned earlier, sort of a light bulb went off in my head. You probably don't know much about my history, but I used to be quite a successful mainstream media journalist. I mean, people knew who I was. I used to write sort of comments pieces in the Mail and the Mail on Sunday Telegraph. I had a. A column in the Spectator. And, you know, when I met people at parties, they'd kind of be impressed because they'd met somebody who was, you know, whatever. And then I had my epiphany and I became a podcaster, and I started talking about crazy subjects like 9, 11 moon landings, all the things I was discovering on the way. And I built up a reasonable following based partly on the people who'd followed me from. Who liked my journalism, because I was very good. I was a very good writer, very compelling, entertaining. So people sort of followed me and often came with me down the rabbit hole. So my journey was their journey. And it was great in the early days during COVID where we all felt like we were resisting this tyranny that many of us had been un of before. We trusted the system, and now suddenly we realized that we were being solved. A lie about COVID and maybe about everything else, too. So I built up this audience and I thought, well, this is great. I'm part of this resistance movement, and I'm able to just about make a living monetizing my content. Not quite as much as I made as journalism, but it's all going fine. And this happened for two or three years, and it was great. And I felt loved and wanted. And then in the last year or so, I suddenly started discovering that we weren't all on the same page. We weren't all one sort of coherent resistance movement. Okay, we accepted that we weren't in agreements on everything, but we were all heading the same direction. I found myself being sniped at by fellow podcasters whom, hitherto I thought about very little. I certainly didn't think of them as a threat or as rivals. I just thought, like, they were nothing. They didn't mean because we were all doing our own thing. I was doing my shtick, they were doing their shtick. And I was wondering whether this process is a function of what you described, whereby they, whoever they are, are so good at manipulating algorithms and access to data and reach and so on, that they are able to engineer these. I mean, it saves them the trouble of. I thought at the beginning I was going to get taken out. I thought I was going to get, you know. Well, I mean, it may still happen. It may still happen to you. I suppose I thought I was going to get bumped off because I was an example establishment journalist who had suddenly discovered too much and was saying it to everyone who'd listened. And now I think, no, that's not how they do it. They just kind of marginalize you. They get random people to kind of have a go at you, try and try and reduce your. Does that make sense to you?
Simon Dixon
Yeah, it does make sense, and I think it's a very interesting conversation, and I really appreciate you sharing, like, how it was in your area, because once you see these things, right, you look back at your life and you think,
yeah, like, where do these things come in?
Like, it's very subtle, and it is like a social proofing concept, a desire to fit in. And then you realize that there are these. If you look back at, like, the whole root of the war economy, it was based upon marginalization, divide and conquer, and making everyone so divided that they're easy to conquer. And I think that's never stopped, but the technology has changed. And so there was one time when nobody knew the game. Like, imagine if we were alive during. My dad was alive for World War II. And, you know, in order to get the news, you went to the cinema once a week, and whatever they told you in that 20 minutes was the truth.
That's all you knew, right?
Then there was newspapers or whatever it may be, but many people couldn't afford it or whatever. So we were in a world where the defense of the never letting the truth come out was the most important thing for preservation. Then we kind of, like, transitioned into the Internet, the resistance against the Internet, all the different mediums. And if you think at each one, we had more and more and more and more information until we're at the point Today where it's like unbelievable amount of information that we're able to access. And so we went through a phase where I think it was cancellation. I'll take you off Facebook, I'll take you off Twitter. There's gatekeepers in the traditional media. You try and write an article and there's a higher infrastructure that says we can't publish that and whatever the mechanism may be. So there was a cancellation phase, but I do believe now we've entered into a phase where say whatever you want and we know how to weaponize it. And that's the divide and conquer phase. And so maybe ignorantly, I don't fear too much being taken out. There was a time when I think I would have famous last words, but now I don't think they care because we built the technology with AI where we've hit this extreme level of there are people that are going to own the infrastructure and there's everyone else. And now we've built a business plan that needs civil unrest, that needs a lack of faith in the system because the technocratic and the private corporate interests and the fic mic and dick, you know, the mic is now cybersecurity and artificial intelligence and robotic based military weapons that don't require humans. We're entering into that phase where warfare is different. And the more speech, the more they know about you, the more you can be weaponized when they're ready to release that weapon. And they need civil unrest in order to get there. So that's why everything's about the police and surveillance state right now, rather than censorship. And I've definitely noticed that. But yeah, divide and conquer has always been away. Every movement I've ever joined starts with a group of people that unify. They drop their differences and they unify around the common cause.
James Delingpole
Yeah.
Simon Dixon
And then slowly there's a psychological thing that kicks in where the more time you spend with each other, you find your differences and then those differences suddenly become drama. And then that drama becomes the source of the media where everyone talks about, oh, did you know that these two people fell out over this? And then suddenly that becomes the media. And so the media always knew that negativity and degeneracy and drama and gossip was, was the way of distracting. Right. It's the old coliseum. Get them fighting each other and killing each other. And then they don't. They can release their, they can release their testosterone over there while slowly we're building this empire, you know, and that's always been, that's always been the game, I think What I've noticed is that the more I look at it, the game and the psychological triggers have never changed. Weaponized religion, weaponized tensions, you know, divide and conquer, point manufacture and other. Get people to believe in nationalism, a political system. Change the leader and everything will change. You have to just keep, you have to just keep people distracted with believing that the things they're focusing on are ultimately the things that matter. And yeah, you know, the war strategy of Balkanize and just make people believe that okay, if I just, if we just turn Somaliland rather than Somalia, then we can have our own very unpowerful, balkanized controlled little jurisdiction that's ours. And then we are working for the power structure that's way more powerful than us anyway. So just break it up. I mean, and that's the history of the Middle east, right? Siz Pico was to draw a bunch of lines with a bunch of racial tensions and religious tensions that guarantee that the region will be in war forever for as long as we can monetize it. And the moment any one of these Arab leagues or a nationalist movement would unify around their energy, you eliminate it at all cost and you create strategic tension. The best book on this was a book called Operation Gladio that I read by Paul Williams. And it describes the manufacturing of strategic tension. And it's strategically manufacturing tension so that you can fund both sides of any type of war and you manufacture terrorists, communists, radical lefts, far right, and you pay people like Tommy Robinson in order to make those happen. Sponsored by Elon Musk, who's got the technical solution for what comes for the plea, the pre crime police agenda. And so you know, you can just look at the, you can look at the incentives and the model and bet that there is a part of the power structure that's trying to make that happen. And there's another part of the power structure that's trying to go on another path and that's the friction, the strategic tension.
James Delingpole
So war, is it their primary business model?
Simon Dixon
Well, war is integrated into, it's not primary. It's a mechanism for getting the resources that you need. Making the profits from the war, the forever war is very profitable. For anyone that thinks that Afghanistan was about winning. They don't understand the business model. A 20 year war that justifies $2 trillion of debt issuance that was then spent back into the stock market and the defense contractors is incredibly successful. And then to take a version of the Taliban that was resisting against the drug, opium trade and replace it with a version of the Taliban that is Allowing the drug opium trade to flow is an incredibly successful operation. That's $2 trillion of profits. A regime change that allows the CIA, MI6 and Mossad to continue their drug trafficking cartels, and an obfuscation that it looks like when you need to dump the US empire, you've got a series of forever wars. And then eventually you can create something like the closure of the Strait of Hormuz where America couldn't exert its force, just like the Suez Canal with the British Empire in Egypt. And then you can change the empire. And so what's the profit? The profit is the destruction, the continuation of the forever war. And then you profit from the rebuild when it's 10 times more profitable than continuing the forever war. So when I was an investment banker, we used to work with the big consulting firms. And I remember seeing things like even John Perkins in Confessions of an Economic Hitman. The consulting firms would put together a model of when peace was 10 times more profitable than the forever war versus the starting of the war. And so if you want peace, you have to come up with a business model where there's 10 times more profit than continuing the forever war. And so war is a racket as. John, John Smedley, I think.
What was it?
Sorry, I'm butchering the name.
James Delingpole
Was it Smedley Butler?
Simon Dixon
Smedley Butler. Thank you very much. John Smedley was a clothes brand.
James Delingpole
Very nice.
Simon Dixon
Absolutely.
See the things that are in our
mind, these advertising, like you pull into this, I was like, John Smedley, where have I.
James Delingpole
Your top could actually be John Smedley, hasn't it?
Simon Dixon
It looks like one, isn't it? It's one of those cotton ones. Yeah, yeah. You know, we are manufacturers, the clothes we wear, the, the brands, the, you know, beans means Heinz. Like all these things you, you see these psychological operations and, and you have to continually catch yourself. Is this my thought or was it downloaded into me? Where did I go? Yes, it is a racket. It's a well defined business model and it feeds into the, the, the technical police and surveillance grids as well that are being built right now. Beta test it in Gaza. And what they want to build in Gaza is what they want to build in Britain and across the world with. In America they call them freedom cities. In Europe we call them smart cities. In Gaza we call it a concentration camp. And it's the same people involved. You use Israel to test the technology. You test it in Gaza with an open air prison and then Palantir, the same one that did genocide as A service and occupation as a service is the same technology that the nhs, the Department of Defense, the Department of Justice, the Trump border control. Even in America you have the privatized prison sector. That's one massive racket. The more you. I knew somebody that got arrested by ice, a British person that was arrested by ICE on the border and he was just literally driven from prison to prison every time he was about to see a judge because he knew there was no case. But every time you get driven into a new prison, there's a new check that's written. And even the privatization of the deportation industry, you get paid a dividend per deportation as well as a dividend per arrest. And you just create privatized incentive structures. ICE is owned by GEO Group and funded by CoreCivic, which are the two companies that profit from the privatized prison sector. And you have 2 million Americans that are deported in America, the highest population to incarceration rate in the world. And you can see the stock price of the companies that benefit from it. And so war is a racket. And this is the next, you know, if you eventually can't exert influence in a, in a US dominated world, then
what do you do?
You bring it home. And so they're creating the domestic terrorist, you create protests and those protests are infiltrated by intelligence.
And then you say, hey, if you
support Palestine, you're now a domestic terrorist. And you create the environment that justifies the technology that builds what the legislation needed to change. You see it across the UK everywhere right now.
James Delingpole
It's why they invented gangster rap as well, to put more black people in prison. That was the purpose.
Simon Dixon
I completely agree. And so if you look at the history of the transatlantic slave trade, the compartmentalization of the ghettos, the drug trades that the CIA deliberately injected, you had the wars where you eliminated any uprising and you had, you know, move, for example, where literally they bombed like the ghettos because they work, they were organizing and doing well and building their own universities. What was this, sorry, the move M O V E, it was like where like the military was put on top of like some of the ghettos that were building their own parallel systems within the black communities and they literally just bombed them and killed them because just like they did in Gaza. And if you share any of these things, what happens? Immediately everyone watching this will say, hey, is Simon a far right radical left socialist that believes, you know, and like someone else will listen to say, hey, I'm a white nationalist.
And, and everyone has their own, their
own installed view that tries to put me in a box based upon me just sharing objective, documented history and incentives that lead to it. So the very difficult part of this is that I could describe that and you've already made assumptions around who I am based upon sharing that story. And so there's no doubt that hip hop music and the music industry and the result that you know this whole how to weaponize racial tensions and manufacture the result that you want. And then they pull out all the data and you'll just say, well, white people do less crime than black people. And then if you have an opinion on that, they compartmentalize you into a box that leads you to wanting to be defensive against that because you've subscribed to some ideology that you probably never consciously decided.
James Delingpole
Yeah, yeah, absolutely. I got distracted with something I was going to ask you about. What were we talking about before we got onto the gangster rap?
Simon Dixon
I think we were talking about Operation
Gladio and Stay at Home armies and manufacturing terrorism and domestic terrorism in order to get civil unrest and infiltration.
James Delingpole
Yeah. I'm curious as to you. So you've got these sort of competing mafia families, if you like. So you've got the FIC and the Mick and the. And the. And the tick. You mentioned earlier that that the FIC wins because ultimately that's got access to the money. But you're suggesting that the. The take the tick could be overtaking it.
Simon Dixon
Yeah.
So at the moment, all of these technology companies, we just had the SpaceX IPO. The SpaceX IPO happened at 1.75 trillion valuation. Now what is it doing? Essentially, when you go public at that valuation, you create what's called an atm. And an ATM is where you use your own stock as your currency. And so immediately they acquired Cursor, which is an AI company that helps you codes instead of having developers. And so by having this valuation, you're able to concentrate more and more of the smaller companies into an ever larger and growing monopoly. And so if you look at the s and P500 today, 40 to 50% of it is the magnificent seven that's now becoming the magnificent ten. When you IPO anthropic and OpenAI and these other things.
James Delingpole
Yeah.
Simon Dixon
And so the technical industrial complex is now 50% of the S and P. But what's really interesting is we've got this strategic tension with China, where China genuinely is using AI in order to improve their manufacturing processes, whereas America is trying to monetize it and put everyone into a subscription model where you can't function without Paying, buying the tokens. China can now do it 10 times cheaper than the American models at 90% the efficiency. And we've, and also they've got, you know, the, the access to the alternative energy sources. And we've got, you know, these, these different things. Where was I going? Okay, yes. So the valuation of these companies can be rug pulled at a second if China reveals what it's built. And so you use these stock valuation models in order to concentrate wealth and then you use the crisis to concentrate wealth. So the global financial crisis benefited the FIC more than anyone else because you can socialize the losses and privatize the gains. You can take out all of the smaller institutions and bail them out with the larger institutions. So each crisis concentrates more power into a fewer and fewer hands. Now, at the moment, the FIC is able to play the game because they can launch currency wars. They can use the derivatives markets in order to destroy share prices. They can portfolio manage through the controller capital and so they can make everyone subordinate to capital. But there is an interesting dynamic that's coming right now, which is what if the blackmail operation became everyone talking to their therapist in ChatGPT? What if the data actually became the currency which I think it is moving more and more towards? So what if you could rug pull all the markets simultaneously? You could rug pull the stock market by revealing the overvaluation as a result of China's AI. You could rug pull the commodity market by revealing that the west has many times more derivative contracts and Shanghai has all backed gold in China. You could rug pull the bond market by China and Japan selling all of their Treasuries and manufacturing a bailout where the Fed is the one that can purchase all those bonds. So China could rug pull the whole market if they wanted to, but what are they doing instead? Well, the Beijing meeting with Trump had all the executives of the MCVIC and tick in one place meeting with Xi Jinping. And they were all saying, you know, in my. This is. Take this as my interpretive. I couldn't prove any of this, but I imagine that Elon Musk was sat down with Xi Jinping saying, please, please, please, I need these rare earth minerals for my EV batteries and I still need. And Tim Cook from Apple was saying, please, please, please. While we're pretending we're rebuilding our manufacturing base in America, there's no way I can sell an iPhone for $10,000. Please make sure our warehouses and our manufacturing factories in Apple are still allowed to function in China under cheap labor. And don't worry Huawei can go and do and copy it and you can create your phones and the same people that work for Apple can go and then work for Huawei. But just don't make me build my manufacturing base in America because then that breaks my whole business model.
And I imagine that Visa and MasterCard
were saying, I know you've built guardrails around your SIP system and I know that we cannot. You know, you've built a network of central bank digital currencies through Enbridge that circumvents swift, but how can we integrate into your system so at least when we can charge fees going into the SIPs network, and I know you want to. You understand the game. You built guards around your financial system. We can't penetrate it.
But how can we do that?
And also how can we win the AI game together? We know that we can pretend we're going to go to World War Three. And we all know that we can't manufacture a weapon in America without China's commodities, rare earth minerals, refinements, and everything that our military companies need in order to be able to exert military force. We need you for that. But don't worry, we won't touch Thailand, but sorry, Taiwan, but maybe we can figure out what we're going to do with our chips. You become chip independent, we become chip independent.
And we carry on the narrative of
that we're actually in an AI arms race because that allows you to manufacture more while we make more profit in the stock market. And the more that you can sell to us, the more we can keep the jig up of pretending we're going to go to World War 3 and that that's actually possible because that props up our stock market, which then means that we buy more goods from you. And so there's a codependency between China and, and the FIC and the MYC and the tick.
But China could take this whole thing
open source, and that could break everything. And the FIC can't penetrate pboc because that's a national. That's a genuinely nationalized central bank with a network of nationalized banks. And they nationalized those when they tried to penetrate the Chinese banking system through Hong Kong in Shanghai. They did what Putin did. They expelled the banksters. You know, Putin expelled the oligarchs and nationalized the oil. So they got a genuine God there. But could we just work together to build a global AI technocratic grid? And maybe it doesn't need to be a conspiracy. Maybe it's just the obvious way this goes. Maybe money becomes less important in the future. Maybe we enter into a moneyless world under this grid that we're moving to at a point of singularity. I don't know. But let's hedge it. Let's move to multipolarity. Let's asset strip the west as the financial FIC system and then let's see if we build this global technocratic tick grid, maybe we displace the fic, maybe the tick becomes the ruler and maybe data becomes the resource.
And maybe we put the whole world
onto a universal basic income and the ones that control the data and the data centers which we're concentrating into fewer and fewer hands, maybe they become the FIC of the future. Who knows? Let's play both games and hedge.
James Delingpole
Well, you said there were some FIC representatives and some MIC representatives at the same conference. Wouldn't they have resisted or wouldn't they have seen this particular thing going on?
Simon Dixon
Yeah, but who owns America? America is a privatized corporation owned by transnational capital governed by the fic. America is not a nationalistic.
If you, if you think uk, Australia,
Canada, Europe and America are countries, then you've bought into that. The governments are in charge and politicians run the game. No, they work for FIC and they are just asset stripping the west and managing a portfolio so that they end up with as much assets under management as possible and politicians that are subordinate to their lobby financing. There is no sovereign countries left other than China. And we don't want to be China because we call that communism and an authoritarian, which it is. It's not communist, it's got capitalism under state authoritarianism. And that means that no company can be bigger than the Chinese Communist Party and the government, which means that authoritarianism reigns. But we've got the opposite. We're run by the bank for International Settlements, the Federal Reserve and the financial industrial complex. We just don't know it. We think we got democracies. As long as we buy into that belief that changing the voter and changing the party is what will change the system, then we will never know who we're governed by because we vote with our money. It's our money that actually makes the difference, and FIC knows that. And they got the most money. And so if we've actually all started voting with our money, then we could break the FIC if we wanted. All we'd need to do to break the FIC is stop paying our mortgages and stop paying our rent and the whole system crumbles. But they want you to believe that it's actually some kind of uprising. And so what are they doing? They're basically making, you know, the next movements are going more left, more social, more. But it's not communism, it's fake. The whole thing is a monetary system that funds both sides. And you're just a useful idiot for power by believing that what you're doing is going to change the system. And once you get that, you realize that it's money that rules the game.
James Delingpole
But wouldn't it be rather difficult for us all to stop paying our mortgages? And I mean, wouldn't there be, Wouldn't our assets be seized and wouldn't we be ending up in prison or having our houses taken office or whatever?
Simon Dixon
Hence the strategic tension. So the people that would hate that are who? The boomers, where their retirement is based upon their stock value that they built over their whole life. And the ones that have built significant wealth in the property that they own because they were on the right side of the K shaped economy when they came out of World War II and beyond. You speak to the youth today, they're like, hell yeah, look at China, they just crashed their property market. That makes it more affordable. Yeah, they're like, crash this shit. I don't own any of the assets, I don't own any of the real estate. And so you create the strategic tension. And the strategic tension right now is between men and women that hate each other and are not having families. The wealthy and the people that have the assets and the people that don't, they're on the extreme other sides. A generational gap, a wealth gap, a race, all of these different things. And that's they've built your algorithm to put you in the box that you need to be in that feeds you all the data that makes you believe it's them, it's the boomers. They got all the wealth, they've got all the assets. So what do we need to do? Let's go burn down a data center. Maybe that will make a difference. And then what happens? That data center is insured and the insurance company makes a shit ton of
money out of it.
And the national debt increases because you end up bailing out the AI companies because the whole stock market is dependent upon it. So you pay the bill and you pay the inflation. So you think you're rising up to power. But yeah, to answer your question, yeah, it would require coordination. And it looks like no one's capable of coordinating something like that. And so we continue to comply, which is why I believe that the Actual solution is in the exit. It's in the boycott and the exit. I don't think I can change the system, but I think I can take my energy out of the system and my money can contribute to things that aren't in that system to the extent that I can. You can't get it fully. And maybe if enough people do that, then we could have enough leverage and negotiation power the same way that the FIC has. The FIC had to negotiate with China because they couldn't penetrate China. If they can't penetrate you, you get leverage. You can say you vote with your money, you want your share price to perform. We'll end the boycott, you know, but then you'll be called a radical left, communist, pink hair, lgbtq, rainbow fairy if you talk like that. And that's how they get you.
James Delingpole
I don't think the audience of this particular podcast will be thinking that. They'll be saying, yeah, go Simon, tell us what we need to do. I mean, how do you give yourself this sort of financial China proofing, as it were?
Simon Dixon
Well, it's FIC and China, they rule the game. So where do we have influence? We have no influence over China, but we do have influence over fic. That's manifested in their share price, so don't buy their shares. That's manifested in the bond market, so don't buy their bonds. That's manifested in etf. So manage your own money rather than have them manage it for you. That's how they control the capital. Choose your currency, don't use their currency so that they have power for their currency wars. Now, most people, this is a journey that people have to go through. And most people realize that they are fully subordinate to the fic. Their mortgage, their credit cards, their everything. And so what do you do? You slowly, each and every month, do the opposite of what they want you to do. They want you deeper in debt. They want you managing any wealth with them. They want you giving your voting rights to them so that they can vote it for you through ETFs and index funds. And you do the opposite. So I work through. Well, what do you have to do to boycott the Fed? Well, there's the Fed, there's gold and there's Bitcoin. Pick your poison. Manage it as a portfolio, whatever you want to do. What do you do to have to boycott BlackRock? Who's managing all the fun? Well, you either buy an ETF or you buy your own shares or you don't invest in the system, you invest in private equity in Your local community businesses that actually will make your life better. Because when they want to sell you poison food, you probably want to have investments in your local farmer that can help you at the community level. What if you want to boycott the bank? Well, maybe you can get in a position where you don't need a mortgage. I know that that's very difficult for many people, but maybe you build assets before you build a mortgage because the mortgage is a backbone of the banking system. Maybe you don't borrow against your assets. Where you mine some, you know, some, which is what they want. Where you give them your asset as collateral and they give you a loan. Maybe you take that energy out of the system to the extent you can. So don't leverage your assets. Maybe you make investments that are more conscious. Am I purchasing through Amazon or am I going to my local farmer to the degree that I can and supporting supply chains of local community networks rather than me just taking the easy option all the time. It's a spectrum of subordination to sovereign. And your job is to slowly each month say am I, I got paid this month, what am I doing with that money? Am I spending less than I own and investing the difference? Where am I investing it and how am I spending it? And each month does it make me more subordinate or more sovereign? And you do that each month and you do that for 10 years. They won't tell you that. They won't tell you that because they want you gambling, they want you focusing on how to get rich quick. They want you unhealthy, they want you using their system, they want you doing everything the opposite. They want you eating their food that makes you less healthy. They want you just do the opposite of everything that the media machine is trying to get you to do. And you're probably closer to being on the right track. And be conscious of your algorithms. Understand that they are trying to feed you the information that reinforces your beliefs that you probably never installed and were installed into you and build your own operating system. And so we need decentralized AI, we need self custody money, Bitcoin. These are all tools for sovereignty where you own the terms and you own the environment. Lots you can do. It's overwhelming. It's completely overwhelming. But what you can do each and every month is change your habits and have a long term plan and change your time preference.
James Delingpole
Can you just briefly, you mentioned earlier the Straits of Hormuz. Is it your theory that this is all part of a planned handover? The sort of the end of the American empire Because I'm looking at this war, alleged war in Iran. It doesn't feel real at all. It just feels like we don't know what's going on. It just feels completely made up.
Simon Dixon
It's real. It's real. People are dying, but the mick doesn't care. They monetize death. The FIC monetizes destruction. So if you can have different factions of incentives within Iran, Israel and America that represent the military industrial complex. So think about Operation Gladio. Strategic tension. For 40 years, since the 1979 Iranian Revolution, we were told that there is a group that says death to America, death to Israel. And there was another group that believed that they were protecting the Jewish people. And, and it's anti Semitic if you talk against any of the things that, that they do. Strategic tension. Israel is meant to be in the defense, weaponizing what happened in World War II. And Iran is meant to represent the group that we're told represents the people that did 9, 11. Even though Iran was the biggest enemy of ISIS and Al Qaeda, which are western funded groups and militias. Okay, but you confuse people into that.
Now what have you done?
You created strategic tension between Iran and Israel. Two narratives use the media to perpetuate that and you radicalize people into those ideologies. The more radical the militia groups become through war by killing their children and killing their grandmas, the more you have an army that doesn't know who they work for that serve a different agenda, the more you radicalize the Jews, then they go over to Israel, they join the IDF and they engage in the ethnic cleansing and the Palestinian laboratory who profits well. American debt markets pay the bill and the contractors are going to rebuild and pay all the weapons funneling money through Israel and then they're spent back into the American stock market. And you created through this strategic tension $10 trillion of profits that went directly into FIC. Bottom line. And the longer you can keep the strategic tension going for, the more you can profit. And so we end up in a scenario where suspiciously Iran and Israel are meant to be enemies that are meant to be the most radicalized versions and yet they never bomb each other until 2024. And we're told that Iran is two weeks away from a nuke for 20 to 30 years. And yet that strategic tension is never fully resolved because it made a lot of money for Mick. And then you have different incentives. The Israeli stock market is 40% MIC. Iran has a faction of power within the IRGC that also has their own businesses and their own military industrial complex that also, if you are a sanctioned country. The more you fund resistance, the more leverage you have in order to try and get those sanctions removed. So no conspiracy needs to be built, just a set of incentives that drives the behavior that creates the strategic tension. That also means. And so that was one faction. What happened with another faction? You had 19. Think about it. 1971, America goes off the gold standard. 1973, you have Israel created the junk war that then creates the energy crisis and the embargo that drove the price of oil up like crazy. 1974, you get the creation of the petrodollar and then you get OPEC as a resistance against the western oil companies. Safari Club is created as an intelligence covert network funded by George Bush to protect his oil interests. And suddenly what does Safari Club do? Grooms Osama bin Laden that leads to the creation of Al Qaeda that later creates ISIS that were then connected to 9 11. In 1975, the one that did the oil embargo, King Faisal was assassinated. Then you get the petrodollar. The petrodollar was an agreement between Saudi Arabia that said price your oil in dollars and then reinvest it into U.S. debt, U.S. treasuries. And when the money is in the Federal Reserve system, the yield on the debt purchases equipment from the micro and rebuild contracts into Saudi Arabia that allows for a military base to be installed in Saudi that we say is protecting the petrodollar, but in fact is used to create strategic tension between Israel, Saudi and Iran. And we do the same in Turkey. I could tell you a similar story. We do the same in Egypt. I could tell you a similar story. But. But for the purpose of time, you've manufactured strategic tension. Now what changed? What changed is that the financial industrial complex created a global structure that ended up in globalization, that ended up with the entire manufacturing base in China.
Energy.
America became energy independent, started fracking under Trump, didn't need to import energy. We moved to an AI world.
We need more lng.
This is a new commodity. Semiconductor chips for the robotics and all of the computer chips. We need to reset the world order right now. On whose terms? So what did FICC do? FIC went and said, I tell you what, Saudi, stop investing in U.S. treasuries and invest in U.S. equities will give you access to every deal. And the Gulf built sovereign wealth funds, trillions of dollars of sovereign wealth funds. And with that money they stopped buying treasuries and they started buying equities. Now $70 trillion of US assets is foreign owned by FICC. All the domestic is owned by FIC. FIC worked with the sovereign wealth funds, Norway, Singapore, the gold funds. Where did Saudi get all of its money? Where did Qatar get all of its money? It used to be US but now it's China. China needed all the energy and so China, the largest sovereign wealth fund in the world, fueled all the other sovereign wealth funds across the Gulf. And the Gulf partnered with the FIC and stopped buying Treasuries, which fueled the US debt, which fueled Pentagon, which fueled the mic, and instead partnered with the fic. And transnational capital now was influenced by Saudi. Saudi went to the FIC and said, why don't we put Saudi Aramco on the stock market? I'll give you 1% of our energy. And the board's member, then the CEO of Saudi Aramco became a board member in BlackRock. BlackRock, the fic. The managers now has to cooperate. And who owns all the AI? Who was in every seed round of Xai, of SpaceX, of Nvidia, it was the Golf funds. So the Gulf money became more important. BlackRock took over all the domestic money and China became the manufacturing base and the fuel and energy of all of the system. And so if you want to change the order, you say Israel is a node for MIC and the strategic tension with Iran is what fuels the forever war. Saudi China came along and said, hey, in 2023, Saudi Iran, I'm your most important partner. You guys normalize. And guess what, we're going to regime change. Israel October 7th happens, the resistance is no longer supported, we enter into a phase of war and we have a different version of Iran normalized with Saudi Arabia that now needs to get rid of America. How do you do that? Get Iran to destroy all the US bases, Get Israel to take out the people that weren't involved in this that wouldn't be on board with this plan and get America to destroy all the bases that need to be rebuilt by China and the Gulf countries and then reset the world order by closing the Strait of Hormuz. How do you close the Strait of Hormuz? You do a two way blockade that requires insurance through Lloyds of London in order to get a ship through. So now you've got Lloyds of London, America and IRGC that determine whether you can get a ship through and only China can resist that. So China gets all this energy and guess what China did way before this? They built the largest oil reserves in the world, 1.6 million barrels. And if you look at the history in the syntax, you had The CIA escalate the Ukraine war which was a regime change to install Zelensky. Then you had Russia take over Ukraine and blackrock get the rest of the world using the IMF and the British pound as the collateral. Then you did Venezuela, then you did Syria. Now isn't it interesting that Russia and Iran and China miraculously allowed regime change to happen in Syria with the Assad regime and regime change to happen in Venezuela with Maduro. It's almost as if a group said or a world leader said the Middle east is now no longer for the forever war and we're going to rebuild it with Gulf capital and Chinese capital and you need to expel America and Iran and Saudi. You're going to be strategically. We don't need the strategic tension anymore. So let's regime change Israel. Let's get the media machine through Tucker Carlson, Candice Owen, Nick Fuentes to reveal Israel for what it actually is so that we can de radicalize the evangelical Christians and radical Zionists in America, destroy the reputation of Israel and acquire it. And Netanyahu started privatizing many of the Israeli state assets and UAE started buying them. And what did UAE do? It got an FX swap line to take over the petrodollar and it also came out of OPEC which was the other half of the petrodollar. So the FIC handed over a node of this infrastructure. And what did Japan do? Japan started breaking the Japan carry trademark and started increasing its interest rates and then you had enemies between Europe and America are manufactured. We're the socialists, you know in Europe we're the capitalists. Right. An energy crisis that made Europe more dependent and the the Western hemisphere became subordinate to FIC through these operations. Russia gets Ukraine and China gets Taiwan as an alternative for World War three. So now we need a narrative. What's the narrative? Let's close Australia for Moose. Let's make it where America can't defend it. And Trump creates an energy repricing crisis and inflation crisis. That means the FIC kicks ass and the FICC did kick ass by the way. BlackRock's assets under administration went from 12 trillion to 14 trillion. Thank you very much. Beautiful, beautiful reset of the world order. America is being asset stripped. Europe is being vassalized into the FIC tick and mic and the forever warmer can no longer be sustained because China has turned the Middle east back into West Asia. And the rebuild contracts will tell you whether that's true or not.
James Delingpole
But you don't position yourself to benefit. You don't make investments on your Analysis, do you?
Simon Dixon
There's two ways that you can take this. One is you try and build as much wealth in the game knowing that you can cleanse the money into assets that sit outside the game.
James Delingpole
Yeah.
Simon Dixon
And so I made a lot of
money in the game.
My game was private equity.
James Delingpole
Yeah.
Simon Dixon
And once I figured out how the game was, I de. Invested to the extent that I could. And I took my economic and financial energy outside of the game. I recognize that that's not a viable thing for most people. Most people have to have a mortgage. They have to have someone manage their money. And so there is a spectrum. As I said, I was blessed to the point where I think that money has energy, and I think energy and morality comes from intent. And I think once you understand a game, you have a choice. You either contribute to the game and try and take your economic energy out, which is a genuine thing. It's a. It's a dilemma. There's no real answer here. Or you boycott the game and recognize that you have to take significantly more risk and build all your energy, monetary energy, outside of the game. And the only games that I know outside the game, a cash, gold and bitcoin in custody, that's higher risk. And practicality means that you have to do that. So in the end, what does it come down to? To me, it comes down to an intent of how you play this game and what you do. And I just personally believe that life is a test. And if you pass that test, you get more good. If you fail that test, you get more evil. And what we've learned is that financial success can turn you into the most subordinate, degenerate, high net worth, worst version of yourself. Or you can be someone completely broke that doesn't know the game and is the vast majority on a universal basic income. Or you can try and play the game better and end up with wealth outside the system and as many freedoms as you can possibly maintain. And I think that's your test. And how you decide will reward you depending on your spiritual belief around what the punishment is. And I'm not here to tell you what your belief is. I just know what mine is.
James Delingpole
And the story you told at the beginning about your dad was he must be very happy with the way you've gone, the way it turned out.
Simon Dixon
I'll close it here. So my father passed away on June 12, 2022. I lost both of my parents in my belief due to the conditioning that they followed in terms of what they did after Covid. I'll leave it there. But they were elderly, you know, that's just my view. I can't prove it, but on June 12, 2022, my father passed away. And the reason I know that date beyond the death is because I invested in a company called Celsius. I was a shareholder in one in a company. And what they did is they allowed you to borrow against your Bitcoin and get a loan. And I decided to borrow against my Bitcoin with a small percentage of it to get a loan to experiment. That Bitcoin made me the seventh largest creditor of 650,000 in the bankruptcy case. And I spent two and a half years fighting it. It turned out that there were many connections to Israel in that Celsius operation. And even some of the hacks that happened happened via a company called Bancor Dao whose shareholders were the niece and nephew of Benjamin Netanyahu. The co founder was a has an AI startup with the Prime Minister's Office of Israel. Today his wife, the VP of loans, works as head of social media or I call propaganda for the idf. I didn't know any of this stuff. Alex Majinsky is now in prison and he was around an IDF member during the Lebanon war where Hezbollah was formed from the Israeli invasion of Lebanon. Something we're still going through today. But anyway, that day they locked out billions and billions of dollars. Some people had their lifetime savings in there because Maginsky persuaded them to do it and said it was safe. I knew people that committed suicide because of that financial decision because they couldn't face their family and tell them that they lost everything and so they took their life. I know people that had to come out of retirement at age 80 because they didn't have an alternative plan. I met people that. There was one person on an X base that tried to persuade me because he sent me a picture of his child and said, look, this is my child, but I can't face this. I don't think I can bring him up anymore. Tell me why I shouldn't tape myself right now. And I had to persuade him not to do it. I met people that moved to Central and South America because they could no longer afford to live in America because they lost their entire savings in this whole thing. And I was blessed because my father ended up on a pension and lost all his savings. And it was only because I answered his question that I was able to actually afford to look after him. And there were so many pensioners that lost their money. So the day that he passed away was the day the pensioners got locked out of their money. And I feel like there was some kind of messaging in there and I was able to work for two and a half years to recover as much money from that scam for as many victims as possible, as well as myself. And so. But I think that's the reason my dad left me, because that closed the journey and that's how I choose to interpret it, whether it's true or not.
James Delingpole
Well done. Next time we do a podcast, I'll tell you the story about my little brother because it's actually very similar to yours. I won't tell you this time. It's been great talking to you, Simon. How do people. Where do we sort of read? You read about you, read your stuff. You got a website? What?
Simon Dixon
Yeah, so I mainly have three things. So I give real time commentary on XYMandixOnTwit. That's where I hang out the most, to give real time analysis. I've got a YouTube channel, aximondixon21, where I go live every Friday. No sponsorship, nothing. Like I'm not at that stage in life. No monetization, no ads, anything. And I just go through the week as a discipline where I go through, try and make some predictions around what happened, follow the monetary flows each week in tech macro, geopolitics, and I just publish it every Friday. And then if I get taken out from any of those places, I back everything up@simondixon.com and I feed it into AI so that people, rather than listening to four hours, they can get a 10 minute overview or a 15 minute blog or a 30 minute video so that if you don't have time, you can listen to it on SimonDixon.com
James Delingpole
Simon Dixon, thank you very much and dear, my dear beloved listeners and viewers, thank you for watching me. I really appreciate it. I love you all, but I especially love the ones who make the extra effort and become paid subscribers, which you can do at my website, jamestallingpole.co.uk or you can still, you can go the substack route. I'm suspicious of substat, but I see why it functions quite well for interactions, so that makes sense. But buy me a coffee. Buy me a coffee. That's always nice, but yeah, keep listening, spread the word. Thank you very much and thank you again, Simon Dixon.
Simon Dixon
Okay, thanks for having me.
Podcast: Simon Dixon Hard Talk
Episode: The AI Sell-Off, Bitcoin Wallet Hacks & Global Realignment
Date: July 31, 2026
Host: Simon Dixon
Guest: James Delingpole (for Part 2 / Interview segment)
This episode provides a deep-dive into three converging macro themes:
The first half is Dixon’s solo breakdown of recent events; the second is an extended, punchy interview with media veteran James Delingpole about the real mechanics of power, control, and money in the world.
[00:00 – 17:56]
[17:56 – 40:43]
[40:43 – 55:28]
[55:28 – 68:51]
[69:47 – 71:18]
[70:37 – 185:33]
This summary highlights the episode’s key points and delivers essential context and insights for listeners seeking an unfiltered, "follow the money" view on today’s biggest economic, technological, and geopolitical shifts.