← Simon Dixon Hard Talk
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Hey, hey, sovereign wealth builders. Simon Dixon here. And welcome to another episode of Simon Dixon Hard Talk Live. We had a lot going on. We had a defi crash. We had tether and stablecoins that were confiscated and frozen. We had Iran War Week 8 and we had some major things with FX swap lines as well as a hearing with Kevin Wash, the new Fed chair that after his regime change at the Fed, we're going to cover it all up today and we're going to apply it and tie it all together because really it is very important to understand the currency war that is quietly being negotiated and reformed in the background. And as usual, we're going to follow the money and go through everything. So this week is Iran war, Week eight, the currency war. And we're going to be looking at how crude, how wti, how oil, how gold and how FX swaps are effectively reshaping money. But most people don't know what's happening because they're not following the money in the correct way. And we're going to go through all the details. We're going to do it in two parts as always. In part one, I'm going to be going through the currency war. We're going to be going through gold, yuan, we're going to oil and the future of the dollar and its dominance that we're witnessing right now. And then in part two, I'm going to go over to an interview I did on the 19th of April on Simply Bitcoin YouTube channel. And it's how the banking system turns you into a debt slave. I want to make sure you understand it so that you can be protecting yourself. So let's jump straight in with part one, the currency war, gold, yuan, oil and the future of dollar dominance. So let's remember what we have been doing over the few last few weeks. If you're new to the channel, welcome. Don't worry, you don't need to watch all the old videos. You're welcome to on SimonDixon.com but in week one we went through the opening shock, the shock and awe campaign that there is a war with Iran and US's involvement, Iran's involvement and Israel's involvement. And we covered what we predicted and what we thought was going to be happening. In week two we went through the escalation phase and this is where everyone really thought we're going to World War iii. No one's negotiating. We're going, we're headed into nuke, Israel's going to do the Samson option. And I was saying behind the Scenes I believe that there is negotiations and started covering what I thought this operation was. Now. I thought it was going to be faster, I didn't think it would be this long. And I think we are in for longer than anticipated as I've understood the goals as this has progressed and it's way more ambitious than the 12 day war in terms of the outcomes. And it wasn't until week three that I said we're going to enter into the settlement phrase phase where everyone said we're not negotiating. And we ended up with a 15 point framework later from us and a 10 point framework. And then later the Pakistan meetings in week four I was sharing how the targets are going to impact global markets. And this is the build back better phase. Essentially we had a war between the financial industrial complex, military industrial complex which are all aligned but different factions of power. And I went through the different factions of power and then said that we're going to get to an end agreement which will be a currency war and a commodity repricing event. And what is targeted, whoever builds it back will be the ones that effectively have are on the right side of the renegotiation. So we talked about the gcc, we talked about the China Belt and Road initiative and we talked about blackrock, State Street, Vanguard and the financial industrial complex and how they manage a portfolio of the military industrial complex and the technical industrial complex. And then the better build back better phase, you go through funding the war and profiting from the war, destroying and leveling the field to the rebuilding of and you know, military profits move to more financial profits and then you have the police and surveillance state and the technical industrial complex that benefit from it. In week five we covered the market confirmation that we are actually in a reset. We talked about the bond market, we talked about the oil market, we talked about how the bond market once it hits 4.5% on the 10 year yield, 5% on the 30 year yield and $115 on the one month future oil, you know, Brent crude oil. We enter into a capitulation event and a theatrical move that makes it look like the war's escalating, leading to a de escalation phase, a check in phase. And the markets will always tell us when that was happening. And then they can't let the bond market fail. So when those yields go up you have to have a capitulation that comes from higher oil prices and then money needs to be led to the big print which props up the stock markets and also dumps the debt on the American people. But eventually, as foreign countries start selling their debt, the Fed will purchase that debt in a big print which we're still waiting for. The market gave us all those confirmations. Week six I covered the final act and said one, a couple of things are being left on the negotiation table. Lebanon which is Lebanon and Hezbollah which was left on the negotiation table. And then the end game and the global reset and what this will look like in terms of the multipolar world order once we're done in week seven. Last week I covered the real war where we went through the energy force majeure contracts, who's benefiting from it, the role of Russia, Iran, opec, the financial industrial complex, Cheniere Energy, Exxon, Chevron, the Golden pass which is 70% owned by Qatar, 30% Exxon and then China's role as the manufacturing base and how that impacts the different supply chains and how that leads to a situation where Iran is deeply vassalized into China and brics, Israel is deeply vassalized into the GCC and the US bases are real rebuilt under a multipolar world order than the US being the sole global hegemon and the different types of choke points and system control via shutting down the Strait of Hormuz and all the different knock on effects on the 50 different repricing events of all the different commodities. Now in week eight I'm going to focus primarily in the currency war. I'll be tying it into current events domestically in US as well as globally with bitcoin, defi, stablecoins as well as on the battlefield, the Middle east and brics, GCC and the different private corporate financial industrial complex and OPEC oil companies and what that actually means in terms of monetary flows, gold flows, bitcoin flows, stablecoin flows and basically the rewriting of money that we are witnessing right now. So in a brief summary for those of you that may be new, as a quick summary, the us, the uk, the EU and the collective west are all controlled by the same what I call financial industrial complex. That's a network of central banks, investment banks, retail banks, asset managers, private equity, venture capital. They control capital flows and governments are fully subordinate to them through the insurance lobby, the financial lobby, the military lobby, the technical lobbies, various other lobby groups that I've cover in my proof of weapons network. But essentially the western interest, the governments work for private corporate interest and they control government. So Trump is not negotiating for America, Starmer is not negotiating for the uk, the European Union is not negotiating for the Europeans. It is effectively private corporate interest managed by the financial industrial complex. So once you understand that, you understand that the EU is effectively being vassalized into US LNG companies. And this will likely be supplied by Cheniere Energy and Golden Pass. And both of those are located in Texas. But they are not America. America doesn't have a sovereign wealth fund. The Americans pay the debt, they get the burden of the national debt. The financial industrial complex receives the yield and they are shareholders in the Fed. And the Fed pays a 6% dividend to its shareholders based upon the assets on this balance sheet subject to certain parameters. And the yield on the debt covers what you pay on your mortgage, your auto loans, your credit card and various other things. But that is a wealth extraction exercise in the K shaped economy. Now the oil companies are not an American sovereign wealth fund. So the benefit goes to the 1% of GDP, which is a few companies and the consumer which is 60% of GDP. They pay higher prices while those companies make significant profits. But you get a narrative of this is maga make America great again. No, this is wealth extraction over to those, the shareholder class as well. Now remember some of those companies, $69 trillion of the US is foreign controlled. And so the shareholder class is global multinational financial institutions. And it's mainly the FIC has partnered with all the different sovereign wealth funds. And those sovereign wealth funds is funded via China who is purchasing all the energy and exports all the goods and they all import. So they will have these alternative payment rails that sit outside the swift system and the dollar system which dominates most global transactions. But it means that it is subordinate to bondholders, those that are lending to the US government, to shareholders, those that own all the debt and equity markets and the banks and financial institutions which create the dollar Every time they issue a loan in a debt based Ponzi scheme where they always roll it over on the people, the companies and the governments. Until you get massive wealth extraction and massive concentration of wealth in a K shaped economy. Then you need a global reset where you price everyone out of the markets and basically a few own all the assets and everyone else become renter class serfs and debt slaves. We cover a bit more about that in part two and in the interview. So Golden Pass, which is benefiting from selling all this LNG or one of the companies and cheniere energy, it's 70% owned by Qatar which had a chunk of its oil come offline because Iran targeted its lng, you know, LNG manufacturing operations. So that needs to be rebuilt. That created a force majeure, cancellation of all contracts and then renegotiating of those contracts at higher prices via this new financial industrial complex. Rail and the rest of it is owned by Exxon as well. Now the company that is going to most likely be refining all the oil from Venezuela is 100 a subsidiary of Saudi Aramco which is the, the Saudi, you know, company that is fully owned by the nation, the Kingdom of Saudi Arabia. And a tiny amount of it, 2% is floated on the stock market in order to renegotiate all these terms. Now Saudi was able to have an alternative pipeline with UAE which significantly reduced the amount of oil, pushes up the price and creates this demand destruction. But there's all the other commodities and supply chains like fertilizers. But we also had distress in Taiwan that relies upon oil from the Strait of Hormis as well as South Korea which relies upon oil from the Strait of Vermice as well as Netherlands. Now they need to renegotiate with America and Norway as the sovereign wealth fund, the Norwegian sovereign wealth fund and the financial industrial complex in America. But effectively you had these repricing events and the US military has become a for rent militia group for transnational capital to go get resources and split it up. And anybody that is out of sync with that plan gets regime changed. So if Maduro wasn't on board with the plan then you get regime changed. If higher levels of the IRGC are not on board with that plan then they get regime changed until there is a version of the IRGC that is stable, regionally stable, but integrated with China's normalization plan that was brokered between Iran and Saudi Arabia that integrated BRICS backing into GCC corridors and all the alliances that fall out from that. And so Saudi is set to be the net beneficiary of this GCC shakeout and China and Russia on the BRICS side and then you have alternative parallel relationships like India, uae, UAE is and China are the two largest trade partners of Iran. And so what looks like chaos on the front end when you follow the trade routes, energy routes and also UAE was the one that provided the financial infrastructure for Iran to circumvent sanctions but also normalized via Abraham accords with Israel which was brokered via Western financial powers. Which effectively is the reason why Saudi holding out on normalization, normalizing with Iran via China and saying we will not normalize until there is a Palestinian state. You effectively expel the US dollar dependence and move it to a petrodollar and petro yuan where Saudi and UAE and now Iran will be able to control those Rails via OPEC and via these alternative payment rails of SIPs, which is the China payment system integrated with 110 different countries and the Enbridge network of central bank digital currencies. And then the stablecoin alternative Rails, which the banks in America via Genius act are making sure that you have to have a banking license so you're plugged into the Fed system. And then they're having initiation campaigns for alternative tech companies like Coinbase and various other ones that they're using in order to centralize as much Bitcoin. And we resist by having money outside the system, gold in self custody and Bitcoin in self custody, we're going to go deeply into all of those and what happened this week. But effectively Saudi Aramco is a subsidiary that's benefiting from the Venezuelan oil side and some of the more corrupt sides of the Zionists that need to be compensated, like Paul Singer via Jared Kushner's fund for the Trump family that needs to be bribed via the $5 billion of affinity partners where Jared Kushner is managing. That's why he's at all the meetings, the bribe network, so that Trump benefits, which is funded by pressure from the sovereign wealth funds which is leading to this transition. But there are factions of power that wouldn't be on board, the radical Zionists that are in regime survival mode at the moment. That will be eventually regime change. But Netanyahu has to provide his utility, which is aligned with the military industrial complex, the old world, the old world where America would be the hegemon. And that is the, you know, the narrative of Zionism and Israel being our best ally is being destroyed via nodes in the network like Tucker Carlson, Candice Owens and various others. And then there are hardline elements of the IRGC that have created their power structure based upon the strategic tension between Iran and Israel. That is narratives like two weeks away from a nuke or death to America, death to Israel. That created an environment where a resistance economy was built. And so those that had genuine resistance against oppression, like in Palestine, in Gaza and like the Houthis in Yemen, like Hezbollah in Lebanon, like those various groups within Iraq after the Iraq war, they would be funded and supported via this Iran network that would give Iran strategic leverage after sanctions were imposed, that created severe economic issues. And eventually when those sanctions get removed, use your leverage. But there are people left over in the IRGC which are kind of in a personal power companies and various other things. And so they benefit from the status quo. So you need something like the 12 Day War, which was a more theatrical event leading to a bigger theater like we're seeing right now. The deaths are real, everything's real. But the factions of power have negotiated the outcome and, and they're using different flows. And I believe there is an internal regime change happening in Iran, but it's not what was sold like, all right, we're saving the Iranian people. No, this is China's factions of the reformist party that had normalized to a Saudi. And then there are various hardliners that you know, are coming out and derailing the plan and, and you're getting false flags all over the place as well from the different factions of power. And finally we're going to get to a, basically a sanction relief package is my prediction, which changes everything. It changes currency. There's 3 to 4 million barrels of oil that come online that needs to be done in cooperation with opec. What currency is it priced on? What's China's interest? What's the fixed interest? What are they leveraging that changes so much, just making that change because Iran is such an oil and you know, a resource rich country. And it is a massive, massive change. And when you don't need resistance anymore, the existence of Israel is no longer justified to be funded by the military in order to destabilize the region, which is what is effectively it was created for when the Rothschilds created it and the British Empire way back in 1917 during World War I. And then obviously the change of empire happened from Britain to America and its role became effectively using Gaza as a playground for testing surveillance, police and military technology. And when the path to regional stability was coming, Israel's role had to change. And so that requires regime change and everything we're seeing right now. But there is a big power struggle there. So anyway, meanwhile, the us, the eu, the uk, they have to pay higher prices because by constricting the amount of oil, by taking so much oil off the market, you create a demand destruction where people are willing to pay higher prices. But there then may be a structural deficit as well, which needs to be renegotiated in terms of contracts so the average person pays higher prices. If you're not rich and you don't own the assets, then you're getting squeezed out of your wealth and the debt is burdened upon the country which is split between the people. And so the people get war debt, they get inflation and they get food insecurity and structural problems. Now one thing's really important here. I always do this. If I was wearing My humanitarian hat, I would be speaking completely differently. These are crimes against humanity, human tragedies. I do all I can to support the humanitarian cause, but when I'm analyzing geopolitics, I have to take that out, be less human and just talk about monetary flows and incentives. That is how I'm able to follow the money and try and make projections on what I think the different interests are so that you can think about what the real power behind the scenes is negotiating. And real power is not what you're seeing on the media. It's not what the politicians are telling you, it's not what the media is telling you. And so anyway, the war debt, the inflation and the recession that follows because the only way to adjust to these higher oil prices is not fixed by money printing. You can fix money printing in order to stimulate the stock market, but if you don't have oil and the oil prices are up, then you have to figure out how to not consume as much oil. And so everyone changes based upon that new paradigm. It changes behaviors, it changes alliances, it changes leverage, it changes everything. A recession follows and then that leads to the justification for a big print. This is where any demand destruction by the fic, they get bailed out. So then you socialize the losses, privatize the gains, get the rebuild contracts and have the civil unrest that allows for the police and surveillance state which the technical industrial complex uses. This is asset stripping the governments and the nation and the people for this FIC and FIC interest and the FIC portfolio that is headed up by blackrock, State Street, Vanguard, the sovereign wealth funds and the surplus nations that are able to utilize the bond market and the equity market to get leverage by saying I'll sell the bonds and I'll sell the equity which allows them to leverage over American policy which then influences the lobbies and it goes through these capital flows network. Anyway, Trump works for the fic, he's aligned with the fig. Biden was more aligned with the MIC and but everyone still works for the fic and JD Vance is more tick, he was groomed by Palantir and there's that natural transition. So Biden created the open border policy which justified all the, you know, and then we had the, the delivery of the Russia war, then Trump more thick aligned and so we get renegotiation, closed borders which justifies Palantir. And then we move into the police and surveillance state, likely under J.D. vance or they'll have their alternative Democrats. Same result, different, different narrative, but same result which moves into the tick and Trump is transitioning us. He was paid for by Elon Musk, a node in the nick in the tick. He was paid for by the banking dynasty. If you look at his top three donators, the FIC notes and then also Marion Adelson who's connected with Israel, Zionism and the micro. And so you can see his policies in terms of his financing, in terms of trying to predict behavior. And I said long time ago when people were like do you think Trump will get elected? I said it's not Harris. Trump is the chosen one because he has been chosen to escalate towards war with Iran and then make people through tariff policy think that this transition to a multipolar world is actually maga which while you shrink America into a regional power and he's perfect for that role. And we had the different operations like before as well anyway now in the nation state level the people that actually have nationalized oil, Iran's benefiting, Russia's benefiting, the Gulf countries take a big hit in terms of infrastructure and revenue but that gives them leverage in other ways which we're going to be covering today when you follow the money. And so they take a hit temporarily but they get what they want on the medium term and they're hedged on the short term slightly. And those that are playing the game, the best get to restructure power amongst opec. And OPEC consists of Russia, Saudi, the GCC and various other countries as well. And so that's on the side of like the trade negotiations. Now China has the largest reserves of everything, rare earths, all the different components, metals, oil, energy, all the alternative energy, solar, wind, hydro, every type of energy they're building out. And anyone that's going and transitioning to renewables, the FIC will have portfolio companies that benefit from that use ESG and then you use the crisis. They tried climate change before, now instead they can use a global reset energy crisis in order to get that rebuilding and manufacture. And then there is the almighty disruption which is nuclear which is why Germany had to turn off its nukes because these were operations and it's why Nord Stream pipeline was blown up and it's why we're getting lots of infrastructure around energy being blown up to keep those prices up in order to change the leverage in these renegotiations and and to transition this world into multipolarity while the tick build their one world government police and surveillance day CBDC stablecoins, artificial intelligence, social credit scores and pre crime arrests which which requires civil unrest. But the rebuild contracts will be done by fic the sovereign wealth funds and it also China has its Belt and Road initiative so it has been selling in its Treasuries from 1.4 trillion to about 650 billion. Buying gold, investing in the Belt and Road initiative and buying oil and energy so that it was ready for everything. So it is, it can hold out for as long as this needs to be. But they don't want oil prices to get so bad like $200 that it blows up everything and creates problems. So they're managing the prices in a managed transition. And that managed transition gives enough time to effectively build the multipolar world, concentrate all the wealth upwards, have a lot of bankruptcies and supply chain issues and then also you know rebuild in terms of the pools of capital and transnational capital. Now what's really important is the payment system in the payment rails which is we're going to be focusing on the currency war today but it's basically built a you know on the, on in, in the west we have a Fed led monetary system in the right there was your terminate alternative SIPs then stablecoins and CBDCs created alternative independent rails and then you had the exits or sovereign wealth which is gold and bitcoin in self custody. In terms of bitcoin in custody that helps fig Bitcoin in self custody that allows you to fight back and resist against FIC as gold does in self custody. If you're putting in custody you help the custodian. Now there is major changes in terms of where that gold is being custody and we're going to be going through that as well. And that's what it's really important to understand. But in the west we're following the World Economic Forum private corporate interest agenda. You know that is the business interest that that is, you know that has Blackrock and Larry Fink as the interim board. On the Middle eastern side and the, and the eastern side we've got OPAC which is the big cartel and then we've got the, the, the power of the CCP which doesn't have any competent subordinate to it but it has its almighty export and alternative rails that that has been building and those are the real powers and I believe that they coordinate in order to get reset the map in line with real power dynamics and they manage it through capital flows which has always been the model by the way. You know the British had the British East India Company and the bank of England. The Dutch created the bond market, stock market, the Amsterdam Central bank and then the Dutch East India company. And then we transitioned to the Federal Reserve System which had different iterations. We went from a gold standard to an IMF led Federal Reserve gold standard where everyone went into free currencies. And then when that bankrupted the Vietnamese war, we went into the petrodollar. And the petrodollar is effectively being renegotiated right now through this energy reset and global reset, which leads the fib to the Fed to asset stripping all the last assets as we manage this transition. And Trump is like the press secretary. Trump is thick aligned. His job is to get rich by executing this as effectively the front facing president of the, the current, you know, American empire. But everything is for thick, Nick and Tick. And his job is just to create a narrative to make it look like it's something different and then extract us enough personal wealth in order to be incentivized to carry on. And then he leaves and we move over to the next puppet, maybe JD Vance. But any world leaders that is effectively not on board with transnational capital is at the risk of regime change. We're probably lining up for Cuban X. We had Venezuela, we had the operation within Iran. Cuba is the next thing. We had a regime change within Hungary as well, interestingly, because that was the holdout vote for the European Union. Now the bank for International Settlements created the European Union. The Hungarian was effectively selling his vote to Israel to enact Mick type of operations as well as Russia which was, you know, holding back the sanctions to invest in Mick. And so bank for International Settlements in the eu, they're aligned with military industrial complex. And we're having within Germany which is effectively being rebuilt as an alternative micro, you know, rail as the traditional MIC that was aligned with the US is leaving and hedging. Okay, so on the front end of this, we are, we think we're all talking about nuclear energy. We think we're all talking about, you know, asymmetric warfare. We all think we're talking about, you know, countries for their survival. America first, Europe first, UK first. We're playing the left and right game. We think that, you know, they, they want us distracted with a completely different type of game. And they're also doing a lot of psychological warfare, flooding us with information so that we have low attention spans, watching one minute TikTok videos, always adjusting to whatever they throw us and galvanizing us into an extremist version of, of our ideology. Whether it be far right, whether it be radical left, whether it be Zionism, whether it be resistance, whatever it may be. They want you extreme so that even if they don't get the civil unrest, they can just do the color revolutions that they've been doing globally like the American and British Empire have been doing ever since for 400, you know, years. The European empires and the American empire, all, all of that is coming home now in a multipolar world. And so this northern hemisphere is being built as well as you know, China effectively having all these different regional blocks that are being defined through these energy renegotiations. Now we're led as this is all happening. Granted it's probably going to take much longer than I thought. That's the bit I didn't get right. But directionally I think we're still headed in the exact right direction. And as it becomes apparent what they're doing to I'm able to follow the money and update you each week with where I think it go next. But the end result is still the same which is a weaker Israel. Iran that's vassalized into Israel that's vassalized into the gcc. Iran that's effectively vassalized into bricks and the, the f full control takeover of the west, you know, more of more and more of that and more and more dependency of the people with these higher and higher prices in this K shaped economy. But we're led to believe that there are negotiations that are failing and we're going to enter into another forever war and that we're still in the US hegemon model. That is the case in the northern hemisphere for Europe and Central and South America. But the Middle East I believe is transitioning to regional stability and that involves changing everything. And those changes is what we're witnessing right now. Now we're led to believe that ceasefire negotiations are breaking down. I believe these are check ins towards strategic operations that are directionally are leading to this transnational capital and FIC video. So with that in mind let's take a little bit of a break. Like last week. I like to break up these videos with a bit of the really funny right now Iranian propaganda that is being released. So let's have a look at the negotiations and I'll be right back to cover the rest. And we're going to be covering what effectively changed this week that allows us to analyze the currency war side. So we'll take a quick break.
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We are having very great negotiations with Iran.
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If Iran doesn't come to negotiate, we're
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going to bomb them
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2,000 years later.
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So where are the Iranians?
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This is from Iran. All right then I will extend the
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ceasefire at Pakistan's request.
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Okay, so let's look at Iran War Week 8. What changed this week and what do we need to know? So firstly, apparently we've entered into a new phase. So by quick reminder, every time oil prices and bond prices hit a certain point, Trump creates a new theater. That theater let's do. You've got 48 hours to decide. We're going to have a nuclear war, we're going to have civilian casualty. People think he's gone crazy, all that type of stuff. All the Magatards say, yeah, Trump's kicking ass, he rules the world. Everyone creates their own narrative based upon whatever they want this to be for them. But we were in a two week ceasefire, which was effectively between the 7th and 8th April was the announcement. And then we entered into the end of that. Now leading up to that we had there's going to be meetings in Islamabad and there was a lot of back and forth and there was, we're turning up, we're not turning up, all that type of stuff. But right before the final hour on Taco Tuesday this week, we had what Trump called an indefinite ceasefire extension. That happened on April 21. And it was an announcement on truth social media which effectively said, we are in an indefinite ceasefire and there's an extension and there's no new deadline. To me, this means that there is negotiations are going to take longer than thought. And the negotiations were happening way before, during, and they'll continue happening after because there's a major, major change as I covered already. But there are different factions of power that are having those negotiations now. We had conflicting messages on one side. We were having, this war's escalating, it's going to the next level. It's going to be a huge forever war. But at the same time, there were lots of flights that were resumed across the Middle East. So we had the Gulf countries resuming flights. There were flights resumed between Iran and China and then China and the Gulf and between the Gulf. And so that was a bit of a confusing message. Now either that was theatrics or they were resuming them knowing that there's going to be no additional kinetics at the stage. Or they were doing it to get ahead. But we were told that the Strait of Hormuz was closed. Remember, we had the blockade of the blockade. So in order to get a shipment through in a blockade of a blockade, you need insurance. That insurance comes from Lloyds of London. Lloyds of London will say, can you give me guarantees that the IRGC won't shoot you? Down and can you now give me guarantees that the US Navy won't shoot you down? And so you need to provide those guarantees in order to get insurance, which means it's closed. But if you are a nation state or you are on the right side of Lloyds of London, the IRGC and US like India is, like China is, then you're probably able to get a shipment through. And so people will use their leverage. And there has been shipments throughout. And so while we are getting the global reset of the repricing of all commodities, those that really have the leverage are able to get their shipments through. So this week, even though we were told it was a complete blockade and that America was going to be shutting off all of Iran's oil and shipments to China, we had effectively 40 shipments still passing the blockade. Now did all they get insurance from Lloyds of London and permission from American, permission from irgc? Well, they got through. You either take the risk and most people would not take their risk with their commercial cargoes. But maybe for oil. Now remember, you can't shoot down an oil tanker because it will destroy all of the allies in the region. So there's a very theatrical element to this. And US is now saying we've got the blockade, it's Iran's taken out, we taken out the navy. Yet there was only three boarded US Navy ships that went on to Irania. Iran, Iranian ships made it. You know, you, you got the Hollywood movie. And yet there was, you know, at least one retaliation by Iran. And yet the US facing narrative is that, you know, the, the blockade is enforced but there was a retaliation. Now that retaliation means that even if US or Iran want to give those guarantees, there's cases where it doesn't work anyway. So Lloyds of London won't be ensuring. And so this is a financial industrial complex alongside different factions of the micro that are involved here and those that benefit from it. So there was one Iranian that was intercepted by the navy and that escalated after the three. So we've got two way, two way sides of this blockade leading to, you know, things that wouldn't get your insurance. Now this week we've had greater than 26 Iranian vessels that have bypassed the restrictions. So it's not the case that Iran is shut off. They're still trading. Their largest trading partners are China and uae. There was a large US military asset buildup that is happening right now. So that's leading to a belief that there will be a resumption of operations. Now are those operations in Lebanon, are they on some of the islands in the Strait of Hormuz. Is it a ground invasion? Well, you know the game here. If you've been watching. In order to have a ground invasion you need over a million troops. So nothing we're seeing is occupation of Iran taking over the oil and then pricing it in dollar as like a MAGA narrative and shutting off China and making America dominate the world. That's not happening in terms of taking over of some of the islands we had. There are two different types of islands. There's Cog island, sorry if I'm not saying that correctly. Where Iran exports over like 90 of all this oil but it has alternative routes. So it will push the price up, it won't stop it. But that might be a theatrical Hollywood movie end negotiation in order to justify why we can get to where I think we're getting in the end, which is the removal of sanctions and the opening up of Iran to the global economies and what implications that has when you have another three to four barrels of oil that are no longer sold at a discount to China but are now sold at the price, the prevailing price to anybody outside the sanctions. And you know, that's an important thing that's being negotiated behind the scene. But it's not. None of what we're seeing is enough to actually do a full invasion of Iran. And we did see that there was an attempt. Remember I said we're looking for a Hollywood movie. Well, there was a rescue operation that many people analyzed and said no, that was a failed ground invasion to take highly enriched uranium, a bit like the B2 bomber that led to the end of the 12 day war where you can just pretend the Iranian program's over and, and everyone gets their exit narrative and things move on. Now we may get another one of those, but we've got nowhere near enough people and it would be a suicide mission. All of these involve real death, you know, but they've never cared. And if you think they care like the military industrial complex care, then you don't know history because this is about, you know, the build back, better model as I've always said, military profits, financial, rebuild police and surveillance state tech industrial complex. So there's not enough to invade Iran. So what are we getting? Well, there is also, and I want to introduce this now because UAE came up a lot. Remember UAE is the second largest trade partner of Iran. It also provide the sanction circumvention mechanisms for Iran. It also has a dispute with Iran in terms of three islands in the Strait of Hames. That's quite interesting. Maybe there is something that's been negotiated behind the scenes and as we'll be covering today in the US a currency war side, there was an FX swap operation that everybody translated incorrectly and I'm going to be going through it and is significance today. So what have we had built up? Well, anyway, there is a USS George Bush that is set to arrive and maybe that will arrive today or this weekend. But it seems like it's going to arrive in time for market close. We know that Trump likes to do these escalations when the market is closed and then taco on the Tuesday, have the market correction, do market manipulation on Monday, Taco Tuesday escalation over the weekend. That's been what's been happening time and time again. And so we are leading into market close when that will be arrived, where that will arrive. I'm not sure whether they're going to do something this weekend or it's going to be next week, but they are setting up that game again. There's also some a build up of KC tankers and cargo ships that are all coming along. Fighter jets have been have arrived in the Qatar air base and the same is happening in the U.S. jordan Air Base as well. So that implies that there is either additional decapitation campaigns in Iran via the flights. There is something that may be happening in Lebanon. Remember I said that's the final negotiation. Chip again, humanitarian crisis. It is disgusting what's happening in Lebanon. People are being displaced, civilian, you know, Deaths, effectively Gaza 2.0 in a certain part of Lebanon and threats of occupation, Greater Israel project. All the same things we're used to when you analyze from the traditional humanitarian side. And we're getting the same kind of buildup within Israel. So it looks like we're getting towards that final thing which is remember I said they solved Yemen and the Houthis with a Saudi agreement, they solved Iraq and Syria with regime change and less support from Iran while US Troops exit and we've had the border peace and the Hamas settlement within Gaza. So now there's only Hezbollah and Lebanon left. And that's the final, you know, the final thing. And we started to see escalation around there. So we had an announcement from Trump that they will be supporting the Lebanese army, which has always been funded by U.S. covert operations. And the financial crisis in Lebanon and the currency war has always been done by the IMF and supporting the Lebanese government, which is very sectarian. Some of it is Christian, some of it is Muslim, some of it is Shia, some of it is Sunni and so is the army there as well and Hezbollah as well. So it looks like, you know, kind of very. We've had lots of civil wars and destabilization campaigns within Lebanon as well. I personally believe that this is a managed transition to eventually integrate Hezbollah into the army, into the political process and then you have an integration with Lebanon into the GCC corridor in exchange for sanction relief that Iran will then open up its markets in the regional stability model that I've always covered. But in the meantime we're getting all of the, the usual narratives as well to understand the game in Lebanon. It's always been when there's a ground invasion by Israel, Hezbollah kicks ass. When they do air domination and bomb, they create lots of civilian targets and there's not a lot that Hezbollah can do and Israel dominates there. Is there a hybrid model with this build up with us and, and Israel? Well, we'll see. But this will lead to I believe escalate, to de. Escalate ceasefire negotiation and, and we're currently in a three week ceasefire which has been violated periodically. Nothing new there. There's always what Israel does. It starts killing journalists, it goes after civilian targets and it starts destroying the buildings for the rebuild projects, for the alternative pipelines, for the alternative infrastructure routes that they want to rebuild. And Lockheed Martin gets massive orders, I think about $67 billion because America is running out of its munitions. So Lockheed Martin gets its stimulus check, the financial industrial complex get its rebuild and profit from war checks and of course as we can see in the Gaza border peace plan, there's a whole element of technocratic police and surveillance state to it as well, all powered by AI and nuclear energy in the new vision as well. But anyway, what we're being told is that these replenishments because America has drained so much of their munitions would take approximately four years to fulfill those order. So there's no quick solution here. This is turning over of US national security for the profits of the military. So this is weakening the military while it gets additional orders while it re extracts those resources for foreign interests and transnational capital, dumping the debt on the American people and protecting the stock markets and bond markets at all costs. So I'll be going through those flows as well. But what does it do as well, who's getting distressed? Well, South Korea, that is part of the semiconductor chip manufacturing industry. Japan will be in stress as well. Part of the robotics manufacturing industry as well as military rebuild contracts. Taiwan, essential part of the semiconductor manufacturing industry. The gcc they're Having stress as well as well as the European Union and those are all the most impacted. So they need to renegotiate into the powers the financial industrial complex and China's Belt and Road initiative that sets up those hemispheres of multipolarity. All are gonna face, you know, basically renegotiation with China with the BRICS corridors and FX swap lines via the Federal Reserve with the US And I want to make sure you understand that because it was kind of pitched as a UAE bailout. UAE has got $271 billion of reserves and trillions of dollars of assets. But those assets consists of US Treasuries as well as US equities. That was the leverage and that rolled out. We'll be going through that as well. But anyway they created the environment of an escalation narrative that price, price spikes the price of oil to get these high prices which is manufacturing the global reset. We get the supply chain issues but then suddenly it stabilizes. So it doesn't get too bad. Now we still have over the next three to six months all of those supply chain issues. Don't think we're out of the market because the equity, the stock markets are at new all time highs. We still need to get to the big print. We still need to face those supply chain issues and there will be demand destruction in a recession. But publicly the talks between Iran and and us paused but privately in my opinion we still continued. And so what were they negotiating? Well publicly it's about nuclear enrichment and nuclear program. That's been the narrative for 40 years. That's the public facing narrative. That always gives the justification for war. Military buzzard to Israel, the supporting of resistance and that strategic tension between Iran and Israel that never leads to a war until the 12 day war as well. We've seen no action from the Houthis which would create the disaster and maybe that's the final scene. But we haven't seen that because the agreements with Saudi have held. We've had constant threats that they're going to come back again and close the Red Sea. But if you close the Red Sea and the Strait of the Moose, I think that's too much of a an issue. So the Saudi d take deal is holding for now and I believe they'll be negotiating their integration strategy or whatever it will be. Now Iran and Iraq, we've had the troops leaving as well as the Iranian escalation that's led to the rebuild contracts within Iran. Severe damage to lots of infrastructure which gives basically a head start to the countries that are selling their oil and are able to get their flows right now. Russia and the private corporate interest in the fit as well. Gaza ceasefire has so far held by Hamas. Nothing changed over there, but Hezbollah has been the final battle. So we've had that weakening of Israel via Hezbollah and weakening of Hezbollah via Israel and so far on the ground invasion Hezbollah has dominated. But we've had massive, you know, infrastructure and civilian casualties and Hezbollah damages from the air as well. So that led to the framework of a settlement and now we get to what I think the end game is. We're going to see that. I'm not sure how long this is going to take. It's already taken longer than I thought. But that's the same with everything really. So at the same time what have we had? We've had a massive currency war. So let me set up the parameters and the understanding because most people don't fully appreciate the flows. So there is 3 to 4 million barrels per day that would come online at full price if sanction Iranian sanctions are lifted. That's a pretty big deal because prior it was sold at a discount to China. Now Iran also has $100 billion sanctioned. That's a significant portion of their GDP. They also have had this trade narrative build where they said we could charge on the straight of a moose that would lead to investment in the infrastructure as reparations. That lays the framework for trade sanction relief. And then we're talking on, off on off around nuclear enrichment and ballistic missile program. But we've got all these major oil negotiations that I think have to happen in the background. So. What is really important I always said is the price of oil is the equity markets and there's the bond markets that lead to the capitulation. Anytime you get a crash in the stock market, anytime you get yields on the 10 and 30 year yield at 4 and a half and 5% and and oil prices above 115 on the one month Brent futures. Now those are the real points. Those are the extraction, the asset stripping, the K shaped economy that has to continue. Stock market has to go up. Bond yields can't go out of control because that affects the mortgage market, which affects banking, but eventually it can. So you can have those roll out. That leads to increases in bond purchase, bond yields. So as bond prices go down because people are selling, bond yields go up. And then you get higher mortgages, refinancing, auto loans and credit cards and everything from there. Now that leads to the narrative for the big print and bailout where the Fed can purchase those bonds to get the rates down. And that's what's needed. This is the asset extraction big print rollover. You also need an AI narrative, China for national security narrative. You know, China's winning the AI race at these energy prices. Our companies, our AI companies are in distress. They are a massive chunk of the stock market. So we must create jobs by getting people to build AI and robotics and data centers. And in the interest of national security, we must win the AI race. That is the justification for the big print and the narrative that I think we're leading up to. And obviously who benefits from that tick and Vic as well. But what do you need to sacrifice in order to do that? You need to sacrifice the value of the dollar because you're diluting the dollar, which is at the end of the war. Once you start doing that in the big print, you start weakening the dollar again. And we already store the DXY. The dollar has started going below that $100 mark, down to 98. This low was 96 prior to this war. So that's starting to happen again. But what other currencies are outperforming it? The Chinese yuan and any currency connected to commodities, whether it be Brazil, whether it be, you know, those other, you know, commodity led things. So those are outperforming. And we got a return to gold as well. And we got a return of bitcoin, so dollars denominated in bitcoin. Gold. Commodity, commodity, commodity, you know, connected currencies and the manufacturing base, the Chinese yuan, the Swiss franc, you know, the, these countries are outperforming the dollar and everyone else is underperforming the dollar. So that is telling you about the capital flows. So the world reserve currency is being renegotiated. When you strengthen the Chinese yuan and weaken the dollar relative to each other and gold purchases are going up, then you're sacrificing and doing the managed transition of the world reserve currency using fiscal dominance, big print, massive stimulus checks to the corporate class, obviously the shareholder class, not the average American. So you're effectively sacrificing the currency for the bond market because you're asking the Fed to do yield control. You're rolling over the debt so that more and more bonds are issued and you're not allowing anyone to sell their bonds in order to purchase oil if their country's in distress, like Japan is right now. And instead you're giving them loans, FX swap lines. What does that mean? Rather than them selling equity. So rather than uae, which owns like a trillion dollars of equity rather than them selling that and crashing the stock market or selling their bonds which would push yields up and create distress in the banking market. They get access to the FX swap market which means that they can deposit their currency and get dollars. And those dollars come from the reserves of the FX foreign exchange stabilization funds or even the tga, the treasury general account or maybe even additional money printing. And so effectively foreign countries can print dollars through these currency FX swap. And the ones that get access continually like Japan, they get to be integrated into the future financial system where you can hold the American bond market to hostage by threatening to sell your bonds. And the same with equities as well. So this is exactly what happened. And UAE decided to take this opportunity in order to get an FX swap line. Now if this leads to a longer term agreement, it bolsters them as a financial system after all this stress because this has been a bad situation for their reputation rebuilds it where you know backstop by dollars and you being able to print dollars which weakens the dollar in terms of the fiscal dominance trade. You also get your. Your financial system becomes a part of transnational capital as well. And this allows hedging of financial rails in countries that are connected to Enbridge Enbridge central bank digital currencies and and China's SIP system which effectively puts them in the middle of the petrodollar and the petro Yuan something that was reserved for Saudi only. Now if Iran gets that too, you now have three rails. Maybe Qatar as well, maybe a. So this is the implication. This is FIC diversifying and negotiating military contracts not for forever war, but for genuine defense which will be hedged by by China, Russia and local regional agreements. That changes everything. It changes absolutely everything. What else happened this week? Coincidentally we had $3.5 billion worth of tether frozen. And so if people were thinking of transitioning to the American stablecoin standard rather than the CBDC Enbridge project and dollarizing, you got an example of why you shouldn't do that. Because they can be frozen. And we also had $13 billion of exits on defi contracts which led to a billion dollars of flows into Bitcoin ETFs and Bitcoin in self custody. So the crypto market started to feel stress. We had freeze functions across many of the crypto contracts. Anthropic layer twos, layer ones were effectively defi contracts started breaking. We had massive pulling of contracts, we had reversal of smart contracts, we had hacking of smart contracts. And that drove everyone into bitcoin in self Custody as well as having freezing of stablecoins. So this was effectively an attack on the defi crypto space, an attack on stablecoins, why people shouldn't use them or know what they're getting into. The movement towards trying to centralize bitcoin into the ETFs. But the Bitcoin in self custody was the safe haven, was the sovereign exit, was the protection because there's no, you know, you don't have all these crazy smart contracts on top of bitcoin. So all of this started happening at the same time as well as the price of gold going up, where central banks were announcing that they've increased their gold holdings again. And then UAE threatened or leaked to the press, didn't threat directly, which is normally on purpose that they will do a yuan oil deal in terms of their pricing if they can't get access to their FX swap lines or they'll sell their bonds or they'll sell their equity. And Scott percent had to capitulate and Saudi will watch out, Aman will watch that, Iran will watch that and that was a Qatar will watch. At other countries we saw that and this is a less risky model because many of those countries have pegged their currency to the dollar which means that they have to protect the dollar. So they have to sell their gold or have to sell their equities or have to sell their Treasuries to maintain that peg. But if they can get an FX swap line they're integrated into the dollar system without subordination to the dollar system which was the old colonization model. This is a gradual managed transition Europe. Now who had those FX swap lines? The European Central bank, the Swiss Central bank, the bank of Canada, the bank of Japan and that was an exclusive club. No golf country has ever had one of those lines. Now the countries that needed the bailout they got temporary lines like Argentina. Argentina and that was with currency risk and IMF and all subordination strategy. But it's always a temporary because if you issue dollars and you take the Argentinian peso, that's a massive risky trade. But taking a currency that's pegged to the dollar is a completely different risk profile. So this may be a permanent fixture and I'm guessing it will be. I'll keep watching that as well. So Europe is beginning to effectively roll out the bans on all the different imports on Russian lng. So that means that it's going to be buying the LNG from Cheniera Energy and Golden Pass and then eventually it can go back into Its Qatar and straight to famous relationship. But not until it's fully subordinated into FIC further and that can go through a recession, distressed acquisitions and the soaking up of all the different assets that BlackRock is doing across Europe, across UK and then building out those alternative where the countries come fully subordinate. There's no agenda for the people, there's just wealth extraction. This is not just chaos, this is definitely global capital repricing and restructuring at this point. So what is the real shift? Effectively we're moving from eventually missiles in the Middle east and Iran ships, you know, and the big shipment operations airspace and maybe we have a final round escalate to de escalate Final last words. It seems like this is a longer operation to get all these things through two payment rails being renegotiated to settlement systems for oil and for different assets and the integration into reserve assets and the different payment systems and payment rails. This is now currency war. Now what is happening in terms of the flows? You saw a lot of talk about gold repatriating eastwards away from westwards. How does that actually happen? Well, when you're integrating into the Yuan and the 110 countries and payment systems like India did, like Russia did, like Iran did as well, you don't want yuan. And China is very selective over their currency. They have capital controls, you know, they want to, they don't want to, they don't want the corporate takeover by FIC that America's had happening to them. So they have the CCP and the FICA subordinate is state banking PBOC and capital controls. And so that doesn't make world reserve currency, you know, the dollar does. But you don't want it strengthening, you want it weakening in order to manage these capital outflows. And that shrinks it to a regional power. But you utilize the rails. And so in a multipolar you can have it where things are priced in dollars but settled in local currencies. So how does China do it Effectively via gold. And so what tends to happen is if you're exporting your gold, your oil, sorry, like Russia or you know, or like Russia is or Iran is, you effectively pay in gold which can then be converted into yuan which then can be used to purchase oil. And the mechanics of how that works I'm going to cover after a quick break and so let's go through another AI video and then I want to help you understand this problem so that we can start to think about the flows and how that impacts the paper gold market and paper bitcoin Market, which structurally is a scam because it doesn't have enough gold in order to back it. And so that is the transition which I think we need to keep an eye on. All of that's going to be coming in the next section. Let's take a quick break with some of the Iranian propaganda Lego videos.
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In the act. Said bring it down, set clear fast now you run what you used to trash built that image, sold that fight camera hit you lost that light all that talk don't hold that weight fold real quick when it's hot stakes bang bang better ram hit the door drunk, drunk you laid on the floor, yeah bang bang, hear the sound, break it down built it up just to lose it now late night spin can't stand straight Agent knock too damn late Knock knock knock still no reply top C silent wonder why I bring the ram break that frame top of power still the same unreachable when it counts the most playing leader, acting ghost Nashville like but the voice ain't there Stage look loud but the crowd don't care Auto tune dreams no real tone dead crowd stay all on they phone you fun the flights push that show but the streets stay flat, don't grow country act but it don't feel right more like dress up on the stage light said you take it all down now you're lost in the sound you said you stand your ground now you falling right now USA ice real one skate, take real hits play real fake you on thin ice lose that pace slide right out can't hold your place bang bang battering ram hit the door cash, drunk, drunk you laid on the floor, yeah bang bang, hear the sound break it down, up now we're breaking down.
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Okay, so let's take a look at the gold yuan oil mechanism. So what's the problem? The problem is, is that countries, they don't earn Chinese yuan and they need to buy goods from China. And China's an exporter. So whenever you want to buy goods, you need some yuan and you don't have any. So what is the solution for that? Well, what, what. What countries like Russia and Iran have been doing is effectively they go, they buy gold with their dollars. So there's a deep liquid market for dollars to gold. And then you can send that gold to Shanghai because Shanghai has a deep gold custody service. And once you send that gold, so effectively you're circumventing payment systems there. You can take your dollars, you can buy some gold, you send that gold to Shanghai and then you receive some yuan on the other side. With the custodian. But then that yuan is deposited with an account with PBOC or with a Chinese bank. And then you can use that yuan in order to buy goods. And then you're integrated into the Chinese payment system SIPs and so, or you could, even if you're Russia and Iran, because the, the sanction restriction is actually on the payment method, you can actually do a barter trade and you can take that account and you can, you can send some oil and you can get through this way. And so this is effectively the alternative payment rails that China has set up. But it also means, what does it mean? They can print yuan, but they can't print gold. They can print yuan, but they can't print oil. And so they end up with gold in Shanghai. And that system is actually a real custody system. They're not issuing derivatives as well. They're not creating, you know, gold derivatives then and having the, the massive leverage paper market that happens or historically happened in London and New York. And so through this mechanism, effectively Iran can sell oil for gold using yuan. And that can all happen within the middle. And then Iran can then offer imports, you know, or they can start to receive those imports from China. And all you need to do is pass the blockade in order to allow that transaction to happen. And so why does this actually matter if there is a blockade? And so that's kind of why you can imagine that blockade is there. So China is not attacking the dollar directly because China doesn't want to have world reserve currency. It just wants to trade. It just wants to export and it wants capital controls. It's not doing what the Federal Reserve System is, which is exporting debt in a dollar Ponzi scheme. And so it's not really attacking the dollar. And even though right now the Chinese Yuan is strengthening relative to the dollar, it's kind of attacking it indirectly by actually having the gold and the real commodities. So it's basically. Imagine that the London system and the New York system has structurally got paper gold that's not backed by gold. And just like the fractional reserve banking system, it relies upon people not wanting their gold. But the Chinese Yuan system means that you have to pay with gold in order to get Chinese Yuan. And you do that via the dollar mechanism. Well, through this whole thing, you end up with China and Shanghai being the largest custodian of gold, while the PBOC is continually buying gold as well through this mechanism and end up transferring as much of gold through your exports. And it's really draining the gold that is the backing of the paper system in the West. And so what you're really doing is you're draining the gold that sits underneath the paper system in the west, which means that there's less gold backing it. And as you have less and less gold backing it, whenever you enter into an event where people don't want their paper gold anymore and they want their real gold and they need to take delivery, the system shuts down. And we saw this during COVID But the net effect is that the gold ends up leaving London and leaving New York and leaving us or Texas or wherever it's stored based upon as soon as you know the paper system. And whenever the paper system weakens, you get these structural movements. And this happened with JP Morgan during the silver squeeze. And you keep having these events where you limit your exports. And that creates a shock in the commodity market. We saw this with silver, we saw this with gold. And through this system of exporting, you end up with more gold draining from the west and over to the East. And so China is effectively accumulating reserves and storing more and more of its gold in custody and using the Shanghai system in order to accumulate more and more gold, while the west, which is ultra financialized and securitized, accumulates more paper. And those paper versions of gold and those derivative contracts mean that the system gets more and more extractive. So transnational capital over time can effectively, through the Federal Reserve System and through this gold mechanism can choose to rug pull the Federal Reserve System whenever it wants to, if it wants to. So if for any reason the socializing, the losses and privatizing of the gains weren't to happen, there's always this structural rug pull underneath it. And you test the system further and further and further and the west gets more and more leveraged and the east gets more and more gold back. And then they did the same with Bitcoin. They effectively created in the West BlackRock, the Bitcoin financial industrial complex that I've been warning against. Bitcoin treasury companies, Bitcoin back loans, Bitcoin ETFs. And if you haven't watched my video on my blog where I went through how Jane street takes advantage of those settlement layers. Between the time you need to accumulate the Bitcoin versus issue the shares, it creates this mechanism for manipulating the price short term. But long term you can't manipulate the price because eventually you end up in a scenario where people want the underlying assets, and this is the whole concept and the whole risk in the system that there is structurally more paper and claims on gold than there is gold. And the further and further this goes, the worse it gets until eventually you have a systemic risk event where people realize, and there was books written like the Great Taking where how this applies to the equity markets. You know, DTCC is the clearinghouse, the brokers own the gold. They have the ability to. When you think you own your shares, the broker owns the shares and DCC has a claim over it. But who actually has the shares? The custodian. So BlackRock, through this mechanism and through the custodians can end up with what's called a great Taking. There was a book written on it, you can check it out on YouTube. But this whole concept of you can use big print that leads into great takings. But you keep the system for as live for as long as you can through the big print. And so you keep extracting, you keep pushing the K shaped economy. The rich get richer, the poor get poorer. But effectively through this mechanism of trade in these global institutions, the gold ends up in Shanghai to greater and greater degrees. And the backing in London and New York gets worse and worse and worse. This is why I've always said to people, gold in self custody, bitcoin in self custody, opt out, you don't need to worry about any of that stuff. You can just sit back and watch it happen. But the yuan effectively gains settlement, leverage and relevance as well through this system. And so the west response is effectively paper gold is not backed by the physical, but they try and make it inconvenient for you to get the physical, which is why they innovate exchange traded funds and ETFs which is why they come up with ever more derivative products and they create more and more synthetic gold, fake gold, representations of gold. Your pension's full of it, but it's not at the custodian. And that is kind of the system working as it was designed. And whenever the system gets stressed, and we saw that during COVID you effectively lend the gold from the central bank. And so this is the mechanism of why there's never an audit of the Fed and Treasury. Remember during the Great Depression there was a great taking of all the Americans gold. It ended up at Fort Knox and it sat on the Treasury's balance sheet. Now through this central banking mechanism and through investment banks creating more and more paper gold, every time there was stress and people couldn't get their gold, you could get a loan from the central bank. And so it would then sit on both the Treasury's balance sheet and the Fed's balance sheet and it's a scam. And they historically just remove the gold standard like they did in 71 when you need more and more debt financing where people can't exchange their gold. But that hasn't gone away. And so all they're doing is buying time. And that's how the Western system is structured. It is buying time because the gold's not there, the silver's not there. And whenever you have those big events where people need to hedge and you have the short squeeze like we did in silver just before 2024 Christmas and 2025 Christmas, you're basically buying time and not stopping the shift. If you can find another etf, another synthetic gold and another derivative contract. And that is the ticking time bomb. Just like FDIC in the west, the Federal deposit insurance can only ensure 1% of all the deposits. So if any more systemic, globally systemic banks go bust. At the same time, the Fed bails out, which is socializing losses, privatizing the games. Same happens in all of these markets and that is getting structurally more and more risky and more and more concentrated. And where are people sending their gold, their actual gold? Well, it's going to Singapore, it's in Switzerland, it's going to Shanghai, but the leverage is still in London. And that's why with Argentina, remember they got their FX swap, you got the bold, they've got the bond scam and the wealth extraction under melee, but the gold ended up in Rothschild and Co in London because they needed it. And more and more was expatriating out of the bank of England, out of America and into Shanghai when you had these things. So this is kind of the same story for Bitcoin in custody. You can do that in reverse. And now what happens when you know that? So you know there's not enough gold and commodities and silver. You also know that the shares are held under the custody relationship in a great taking. You know that a big print can always socialize the losses and privatize the gains. You also know that $69 trillion of assets are owned offshore and overseas. And you know that if you sell American Treasuries, it weakens the price, puts up interest rate and therefore the Fed has to bail out and socialize the losses. So the financial industrial complex is just milking and milking and extracting and extracting and extracting. But also you're a foreign country and you know that you've got a lot of equity. What happened? Foreign direct investment stop buying U.S. treasury bonds, the petro dollar Saudi and started buying U.S. equity and AI companies. But now you can't sell the equity because they can't have the stock market crash because it lays the collateral for a lot of these debt and derivative instruments. So you've leveraged up the equity market, you've leveraged up the bond market, you've leveraged up the commodity markets, you have an oil shock. And the only way to solve the only thing you can print is dollars. But what if the dollar is structurally weaking and having a managed transition relative to other commodity backed currencies? And what if people try to sell their treasuries because foreigners need to buy oil like Japan, like Taiwan, like Europe. You have to give them dollar swap lines. And so that means that you effectively negotiate your country creating dollars based upon having the ability to print your own currency and you have leverage. And so this is exactly what happened with uae. The uae, the basically this week the US cannot allow the selling of equity and they cannot allow the selling of bonds by foreign investors. And Iran knows that. And that's why transnational capital and closure of straight of a moose is the global reset. So what actually happens? So okay, let's look through this. So Iran starts firing at U. S assets in the middle east and one of those is uae. And UAE gets hit harder. UAE has a financial system, financial, you know, tourism, finance and then oil. But through this mechanism Iran starts firing at the uae. The UAE tourists start to leave. You have retail selling their real estate. People deciding is it a finite is finance haven and who buys all those assets on the cheap? Well, institutional investors. BlackRock. And so the UAE gets, you know, the institutional investors get a bunch of assets on the cheap. They get to vassalize USC UAE further into their leverage position within the gcc. They already have a bunch of dollar reserves but they say to the U.S. we're going to sell, we're going to sell some of our treasuries to meet some of these demands. We also saw that people were selling their gold to buy bitcoin as they were leaving. Because UAE has massive gold markets and has also got large bitcoin and crypto markets. We saw the UAE started sanctioning some of the paper assets. We had the confiscation of stablecoins. People were then selling their gold in order to buy bitcoin. To leave UAE we had effectively a threat to sell treasuries in order to, you know, capitalize up their banking system because they gave guarantees to small businesses that needed any of those dollars or any of those local currency they need to, they, you know, they need to, they're selling, they can't sell their oil, so they start depleting their dollar reserves because the straight of Hormuz is a, you know, reduced the amount of oil that they're selling significantly. But they can print their own currency. So basically the UAE went to the US and said, give us a swap line. And Scott Bessant had to say yes because the threat was the leak said we'll price oil in yuan, which means that more gold's going to end up in China. And they start to control the petro yuan system as well, like Saudi has done part of it. And the US response was obviously was we'll provide some liquidity, we'll give you an FX swap line. And so they say you print some of your currency, some dirhams, you then deposit it with us and we'll give you some dollars and you get a rate and your system is backed by the dollar system. And so you get to effectively become like the Japan carry trade in terms of the, the financial services that you can build on top of it. It adds more risk to the US system and more foreign control. And so foreigners can say, I'm not going to sell my equities, I'm not going to sell my bonds, but you need to give me a line. And the other Gulf countries will look at it now, they've wanted it for a while. And so it adds some more protection to the local offshore financial systems which the FICA building which they're relocating to which they've been putting their offices in. And so this is FIC's mechanism for adjusting to multipolarity. The dollar is no longer imposed upon people like it was under the IMF model. Will regime change, you will destroy your currency. We'll destroy, we'll launch a currency war. You have to borrow some dollars. You then have to privatize your companies and then we'll extract all the resources will it put a dictator in so that they will pay them through US Aid. Some corruption will then fund some alternative militia groups via the National Endowment of Democracy for any color revolutions. The old US hegemonic region model that it copied from the British Empire. So you can't impose the dollars. The dollars are now negotiated and that's how you manage this transition to multipolarity. And the FIC is effectively taking the assets that it built in America and exporting them globally while they build these MIC contracts, tick police and surveillance states and FIC alternative payment rails and use that the money printing that the American people pay for and the yield goes to the FIC as well in order to extract as much as possible. This is the complete asset stripping phase. And that's why they wanted to vassalize Europe into the FIC further as well. So effectively, the petrodollar is fragmenting because there's all these vast US equities and US bonds, and you can't have the yield rate go up. And so when Scott Besant says, of course we'll do it, it's an ally, it's a good thing. So the old system was effectively, you get US security, like a mafia will destroy your currency, will destroy your country. If you need protection, then you get US security, give us our base, and you need to price everything in dollars. And then you need to lend the money back to the US government to push up and roll over. And then we take our money and we invest it in equities. And then we innovate all this technology based upon killing from the military industrial complex. And then eventually we roll it out to retail. Now, the new system under this new model is effectively the Gulf hedging with China. And any country that wants to do this could hedge with China and you will have the Yuan infrastructure that you integrate into, which is sips and enbridge the network of central bank digital currencies and the Chinese payment system in order to settle all of the things you're importing. And then you get swap lines from the Federal Reserve, which becomes your bargaining chips, is to not sell your bonds and to not sell your equity. And how do you get your bonds and equity? Well, you sell energy to China, which has the manufacturing base, and then you either buy gold, you buy some bonds, but you don't buy bonds because you're forced to. You buy bonds now because you want leverage, you want to become a bond vigilante. And you buy equities because you want control over board seeds and partnership with the financial industrial complex where you can negotiate that the MICK doesn't create the forever war in your country. And these are the games that the sovereign wealth funds are able to play as long as they keep their resources, which is why they wanted your resources. This is why they want Venezuela. You can't have your resources. You need to financialize, securitize and do the neoliberal model. So it's really, really interesting where this is going right now. And that's why more and more central banks are buying gold as well. Now you've got countries that are looking at. So, you know, within the Iranian and the Russian system, they started becoming the largest sovereign miners of Bitcoin. So did uae. So you have big mining operations in Russia, Iran and uae, I think in Iran it was nuclear powered as well with the nuclear energy program. And the west is creating the microstrategy industrial complex they're levering up. Wall street is trying to get centralized as much Bitcoin as possible and put it in the custody relationship so that they can issue those paper and get everyone to borrow against their Bitcoin, whereas the ones that have it in self custody are the ones that are able to build the immunity against that. But you're getting this new, effectively bond, equity, gold Bitcoin system integrated into everyone, trying to get the real assets. And that's the game. Fiat currencies are a mechanism for extracting the asset that they actually want, which is the real assets. And then they create paper versions in order to extract those assets. And then they over leverage it and they create a central banking system to privatize the gains and socialize the losses and they dump all the debt on you and they turn you into collateralized debt obligations. And then they lever the corporate class by loading them up with debt and then they dump all the debt on the governments and then they move to the next order. This is exactly what we are seeing right now, you know, and, and it's really interesting to watch it in real time. Now they pitch that as UAE is going through distress and needs a bailout. We're basically entering into this dual currency settlement layer. People are focusing on why would people want yuan? What's the dollar? Well, no, you just control the dollar, not with the American system, but through partnerships with fic. And then they're negotiating their multipolarity. This seems to be what is the managed transition is actually looking like now. What do you need in order to make that transition where you need an energy shock? So OPEC comes along and they create an energy shock. That means that it again I want to reiterate, the war is real. Military are more than happy to kill people. They've been doing it all along and they're more than happy to build back better and destroy things. That is the modus apparatus, that is the model. But the outcome is controlled. And so I think that's what we're witnessing as this becomes clearer and clearer. So what do they do? Take 500 million, 50 million barrels off the market? Remove it? Take 50 million barrels off the market. That is effectively the largest disruption in modern history. We've never had that, not in the 1973 oil embargo. Not in the demand destruction of the 2000 global financial crisis. And so of course oil spikes above 100. But that's just the paper contracts. What's happening with the real oil? If you want real oil, Sri Lanka paid over $200 for oil, real oil, an actual barrel of oil. And the price of actually getting and Saudi came out and said good luck trying to get that $100. So the paper market is dislodged from the real market as it has for silver, as it has for gold, as it has for oil, as it has for all these other commodities, as it has for Bitcoin. And this is just the ultra financialization and securitization. But you can't fix it by printing dollars. This is why the crisis is still to happen. Even if we, we get out, you know, and open the strait today, it looks like they're trying to engineer the global reset that we talked about. And we know who it benefits. It benefits the countries that have nationalized their energy or commodities. It benefits the countries the financial industrial complex as a private force and it ends. It benefits the countries that have the largest reserves. That's the game that we're witnessing right now. So we're going to start seeing the diesel and jet fuel shortages. That's the first one that see that we're going to see right now. So the trucker industry in America is not immune from this diesel. Anything that relies on diesel and jet fuel, we're already starting to see that. And so flows, you know, continue. But there's structural shortages and so prices are going up in order to create demand destruction. And we haven't seen any of the full shutdowns yet. But with the, the, the countries in Southeast Asia, they're the ones that are going to be first and impacted by this. Then we'll see it in the European Union. That's all to come. It's all to come. That's still there. And yet it's not really priced into any of the, the stock market because it's got this structural bid through the wealth extraction exercise. This is why the asset holders are benefiting and the people that are dealing with the inflation that are on the bread line, they're selling their assets to meet their expenses because the price of everything's going up. And this is the game. So we've had no real shutdown yet. No, you know, the disruption has been completely real. But the collapse I believe is being managed. So to, in order to accentuate that. You have seized ships, you have tankers that are, you know, rerouted we're seeing that frequently. That pushes the cr. The prices up as well. You have select enforcement but not complete enforcement. But the oil still flows at these higher and higher prices. China still imports because they've got leverage through their exports and routes are still basically sanctioned or removed and insurance happens. And so this is FIC operation in partnership as well. And this also applies pressure on the negotiations. So what is really being negotiated here, I think it is the integration of Iran into this complex. And they obviously the whole history of Iran was that the British Petroleum wanted to steal the oil and then they did regime change in order to prevent nationalization. And then that led to a revolution in order to keep the oil and then that led to the sanctions that led to the alternative structure being built. We had the removal, remember all the operations that happened at the time. You had the removal through the Vietnamese War of the, the, the, the gold standard, the final part of the gold standard replaced with the petrodollar. You had this assassination of King Faisal during the oil embargo. You had the setting up of the COVID safari club after the regime change. And then you had the Iranian revolution and then you had Iran Contra affair and then you had the escalation with Iraq and then you had all the other disruptions in the gold supplies and the oil supplies in Sudan, Libya, Lebanon. You had the destruction of the banking and financial system in Lebanon, load them all up with IMF debt. You had the dirty war in Syria. Then that's replaced with taking over of the oil resource. Can you see how this all fits together? It's a mafia. It's a mafia to, to prop up the currencies. What did you know, remember with Saddam Hussein he. There was one point, some people say this was the cause, some people don't. But I think there's an element of truth in it that he was going to start pricing in Euros. So the real negotiation that's happening with Iran right now and why I continue to believe that there is a deal and this is not World War III and we're not going to. And we're not going to the anything type of nuclear Samson option is because it's a big club and you're not invited. So the forward facing thing that we're seeing right now is that there were negotiations of Iranian uranium and they break down because of ideology. But actually I believe that this is really about what is the terms of returning the Iranian oil to the market and what do all the interested parties get and is somebody on board with that or not? And Then do they need to be regime changed? Not structurally like you saw in Venezuela, but to those that are going to work with transnational capital. And that involves what is the price of oil? That's OPEC price cartels. Which currency is it going to be? Iran wants some petro yuan, Saudi kept some petro Yuan, but majority still petrodollar. Can you price it in dollars but have it settled in local currencies? What about integration into Enbridge and central bank digital currencies for the Orwellian technocratic state that's being built, that's what's being negotiated. Because America or the FIC is trying to extract as much as it can, which is why we had seizures of stablecoins settlements in Bitcoin, pricing in Chinese yuan and then the requirement to remove the U.S. embassies and the destruction of U.S. infrastructure into new defense contracts. This is not America protecting itself. This is the FIC asset stripping and utilizing the assets and exporting them into multipolarity while it builds a global technical, police and surveillance state through the CBDC's mechanisms. And what are the quotas? How much is it going to come on? You know in OPEC you have release schedules and you either default on that agreement or you stick to the agreement. That has an impact on your relationship. What are the settlement rails like? This is different when it's done from discounted oil via China through the system versus an unsanctioned Iran. Are you going to be powering bitcoin mining by a civilian nuclear program? What's going to happen to the uranium? And so uranium is the public facing weapon. But oil is really the deal and it always has been and it always will be. And so remember what I said, I think it was in week six that Lebanon is the holdout negotiation because it is the final and most powerful proxy stroke, ally, model and resistance group. But Lebanon is completely destroyed by the IMF already. So are they trying to turn it into civil war in order to have a shorter term escalate, to de escalate then a ceasefire and integration of Hezbollah? That's my still base case strategy. And anyone within Hezbollah, because I think Iran will allow it to happen. But anyone within Hezbollah that's not on board with that will have to go through a decapitation campaign which might explain the build up that we're seeing right now. Maybe it's not Iran, maybe it's Lebanon and maybe it's to do with those islands which don't make sense. Remember the UAE islands in the Strait of Famous? There's only real two targets because it's not a build up for a ground invasion unless it is agreed and it's Hollywood and it's theatrical and they're going to go grab some uranium like they did during the 12 day war or it's settlement of the islands in UAE which means that that is part of the negotiation or it's theatrics on Cog island which would just price the push the price up and Iran could just drone kill all those people anyway so it's not real which implies to me that this is a managed transition of the regional stability and it's OPEC is FIC and it's the the bricks and the GCC as well so who actually wins in the hands well follow the money I've covered this throughout this whole thing in the west is the private corporate interest they're gonna BlackRock's assets under administration will go up and up and up its energy profits will be records it's defense profits the military industrial complex it's financial extraction of assets cheap assets on the discount and new payment rails and new multipolar rails FIC make tick and of course the police and surveillance state which there was already an authoritarian model in the east but we're moving closer and closer and you started to see in the UK pre crime arrests from social media courts approved digital IDs European CBDCs genius act stablecoin legislation favoring banks and yield we started to see that cameras are now going to be integrated with facial recognition so in the east the state benefits which is China supply chains extracting gold out of the paper markets and the alternative rails and now rather than dollars being enforced upon you you use your your dollar markets in order to negotiate how much extraction you get and control of the asset stripping operation Russia and Iran they get energy control leverage in OPEC but infrastructure is the mechanism how much infrastructure is destroyed determines how long you can set back and that's what I think this is that's the negotiation that we're witnessing right now on the Gulf side They want the pricing they want the middle of the FX swap lines the SIPS integration the Enbridge central bank digital currencies tax neutrality in the middle and the petro yuan and petro dollar now what's the big difference Saudi still comes out powerful people are talking about Iran will be a power they will this is you know at the end of this but there'll be lots of rebuild contracts to integrate into it I believe in the end deal but Iran has a population of 90 million with a similar number of barrels of oil as Saudi. Saudi has 35 million and America has 320 million. That's why the petrodollar still exists even when America is an energy exporter, but via bond purchases and equity purchases. And the leverage is whether you sell them. And then on the other side you have the paper assets that are extracting gold and commodities into Shanghai and they want some of that oil priced in the petro yuan and the Gulf countries want to sit in the middle of it, which is why their ETFs are pushing more and more towards financial services company because they partnered with the FIC. That's the order. And it requires regional stability, which requires Iran being on board, which requires the proxies and the allies and the resistance coming to settlements. And so I think China put that together and it requires a frontman like Trump who works for FIC that is corrupt enough to just extract as enough money for his personal family to execute it. And they paid him via affinity partners. And then you've got to do the regime changes across radical Zionist Israel, hardliner IRGC and the expose the Epstein class within America, but while still doing the asset stripping and the big print and the wealth extraction and the K shaped economy, which means the tick needs compensation. If the mic, sorry, if the mics coming out of the Middle east, it needs war in Europe, it needs war in Latin and Central America and it needs internal civil unrest. And then you get the police and surveillance state. That's the compensation. And Trump is delivering for Miktic and fic, but primarily fic. So the public, what do they get from that? Well, they get the inflation, they get the higher costs, they get their burden of the debt, they get less purchasing power and if you end up having to sell your assets then they're trying to turn you in serfs. You will own nothing and be happy. This is World Economic Forum, opec, World Economic Forum, ccp, Transnational Capital. And that's why I continue to believe that this is a degree of coordination while all the atrocities are real. So let's take a little bit of a break and then we're going to go into some of the stuff that happened on the Defi collapse, the confiscation and then we'll go through the bitcoin side and various other things and then we'll close this one up into part two where I did the interview on simply Bitcoin as well. So let's have a little bit of break and an AI video.
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I will never give you up the straight of hormones must be shot. Block out, block out in my head just block out Please let the ships go through. Come on at least a few. If you block me then I block you Blobcard Blob card block. I thought this was easy peasy loca. Now Mecca and Melania leave me Lockhart Surrender is beneath me.
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Lockhard Lockhard.
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I think soon I get mpg.
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Okay, so while those major changes are happening with the FX swap rates, it was interesting just as I was talking about this. Scott percent put out an X post. It looks like they're trying to scale this model. So this is definitely a radical change in the order. And while people were framing it as Dubai needing a bailout, I don't think people got the headlines correct. So you're ahead of that one now at the same time, as I said, we had a real stress in the defi market. Now if you're a long term listener, you know that I said don't mess with that stuff. Everything other than bitcoin has got some centralized money printer, some foundation, some Silicon Valley VCs and they're just trying to push you into degenerate gambling. And then they allow you to use your assets as collateral and then you borrow against them and mine some fiat currency and then there's some freeze function stablecoins, genius act compliant compliance. You know there's a massive difference between bitcoin and self custody and the crypto market. And so we started to see real signs of stress. I just want to cover it little bit. You would have noticed headlines around defi massive extractions that were happening on several layers. So we had 577 million that was exploited from a smart contract. I don't care about what it is called Kelp dao. A dao is like a self enforcing mechanism where you have private keys and then you sign contracts to perform search and function certain functions. And you have this decentralized autonomous organization, I. E. An organization that exists on a smart contract. And they're always have more centralized control. They're never quite what they they seem. And that led to others that were also rug pulled as well. But it led to about $13 billion of exit from funds locked up in defi contracts. And suddenly we had Justin, some come out and say hey, you know, Tron is the most decentralized because another layer two called Arbitrum decided that it wanted to, you know, perform a freeze function and freeze some funds as a result of some of these hacks and some of these compromises. So it shows you and then Justin sun came out and said, oh, this is the most decentralized. And then suddenly we had more and more freeze functions from Tether and the tether that was built upon Tron, which is the blockchain that Justin sun created at the same time. He then released a lawsuit claiming that World Liberty Financial, the company that had significant investment, really connected to the Trump and Wickoff family. So while Trump is creating war with Iran or for the fic, for the Mick, and while the Wit coughs are negotiating with the envoy in the Middle east, the Abu Dhabi Sovereign Wealth Fund was also investing in the World Liberty Financial Project. And they were quote, unquote, creating decentralized stuff. Now, their ICO was an epic failure, but they managed to persuade Justin's son in order to invest in it. And then they raised a lot more at higher prices as a result of Justin's son subscribing to a chunk of it. And then he got a pardon or his SEC case kind of went away straight afterwards. And now Justin's son comes out and launches a lawsuit because allegedly World Liberty Financial froze a billion dollars worth of tokens. And so people were using these tokens in order to use them as collateral to end up with stable coins. And $2 billion of those stable coins from investing in Binance through USD1. The stablecoin connected to World Liberty Financial ended up in Binance after the Abu Dhabi Sovereign wealth fund invested $2 billion. And Jared Kushner is managing the Trump family wealth while he's negotiating all these different deals. So you can see all of the quid pro quo and suddenly CZ's got a presidential pardon as well. And this is what's holding up Genius act right now. Sorry, Genius act has passed, which is a stablecoin legislation, but Clarity act isn't because they're arguing over the banks wanting yield and now they want to delay it for 60 to 90 days. So in the end, the banks get the favorable legislation around these stable coins at the same time as all these crazy deals being structured at the same time as hacks happening in the defi market that led to all these different freeze functions. All this to say is that Justin sun, who was saying Tron was decentralized, suddenly had stable coins on Tron. And I've been warning about these things all the way through, if you're a long term listener. And so really the lesson that I want you to take away is that protocols can freeze funds, and Genius act is requiring stable coins to blacklist and freeze funds. And so this is programmable money and AI will be doing it into the future as well. And so this is AI programmable freezing of funds based upon eventually your social credit score, which I've been talking about. This is all Transitioning to the 1984 Orwellian technocratic state that Trump called crypto capital. We're going to make America great again by making crypto capital. This is a tick operation if ever I saw one. So this is the stablecoin system exposing itself, itself and you know the old rules effectively and I've always said it is not your keys, not your coins. But now we need to update it slightly. The new reality, and it's always been the reality as well, is that keys alone does not equal control unless you're using proof of work and bitcoin in self custody. And so these freezes are a constant feature in the smart contract stroke, alternative stroke, decentralized finance. And it's only bitcoin where there's no one that can freeze it. You know, proof of work has no freeze function. There is no foundation that has the ability to freeze. And this really highlights it. So we've now got just in the last week as all of this is happening and remember Iran was charging stablecoins for the straight for Moose on Tron that got seized. So there's something going on here. Anyway, when you put it all together, just follow the money and it's pretty obvious. And it was also tied to remember Cambodian scam that stole some bitcoin. And because they can't freeze the bitcoin they had to do and do an actual physical raid and China wanted to pay it out to the victims. And now China's in a court case with the Department of Justice because the Department of justice took the 127,000 bitcoin that they seized from scammers in these Cambodian scams and said we're going to add it as our bitcoin strategic reserve. So they stole the money from the scammers and rather than giving it back to victims, they put it on their as their bitcoin strategic reserve. So the strategic reserve is not about the government buying bitcoin to pay down its debt, it's about stealing your bitcoin. And that's where this is all headed. And so in layer one you're seeing that protocol in these alternative crypto shitcoins actually have the ability to freeze. And in layer two you've got these stablecoin blacklists that can lead to co opt of the company in order to freeze, as we always knew. Now what are they doing in layer three and in bitcoin? Remember I always talked that we're always under a constant state of hijack. And I was talking about. You can look at my old blogs on is bitcoin hijacks. And I went through all the different operations to try and hijack developers, stable coins, all these different things. It's really worth going through that if you want to see. We're now seeing it in real time. So remember I said because you got miners and proof of work and nodes and developers, you can try and infiltrate parts of the ecosystem, but you can't get it all. Which is why we're fighting back with nodes, alternative implementations to fight back against developers, more decentralized structures for mining pools and you know, mining that happens in lots of different countries that hate each other, across private, public, different forms of energy, you know, over 25,000 nodes. So all of this is what prevents any of this stuff happening. But we started getting the Google psyop saying that you need to protect from quantum computers, which is true. A lot of the banks have been meeting up to think about like how AI hacking quantum computers, all these big threats that are coming through. But bitcoin was already on a roadmap and it only initially affects the quantum addresses from a very old form of wallet address, which was mainly around the Satoshi satoshi era in 2009, 2010, that type of era we've transitioned to other types of wallet addresses. And those quantum resistant wallet addresses, they incur a higher fee. So the next phase is to reduce that fee. And then if we need quantum resistant cryptography, that requires upgrading the ASIC system, which new mine, new mining equipment can be done over time. There is a roadmap for, for achieving that. But a proposal was put forward by Jameson Lop and to me it's the exact opposite direction of what we should be going. But now we're, you know, it does. Just because someone proposes it doesn't mean it actually happens and it won't happen. But it was a potential bitcoin rule change in order to take those old addresses, weaponize the quantum threat, which suddenly Google said they've got everything they needed. Which led to market manipulation to take out these wallet addresses and those old wallet addresses. And now Jameson Locke comes out and says, well, why don't we just make it where those old wallet addresses have to either upgrade to a new wallet address, which means they'd have to reveal themselves. Docs himself in terms of Satoshi's 1.1 million, which would be incredibly dangerous or send them to a freeze address because you can't freeze it at the protocol level. And so obviously this won't happen. But you know, these are the types of psyops you we've got to look out for. And the bitcoin community will never allow these things to happen because the nodes will fight back. The miners, you know, mine into blocks, but nodes enforce the rules and you can try and compromise developers. And that's why we've been ensuring that we have completing implementations and really I've been highlighting all of the different things like epstein files attempts and you can look back through my blog on SimonDixon.com and see all these things. But anyway, the type of old address is called P2PK. Probably none of you will have them, but you can look it up. It's a pay to pub key type of address from the very early days and you know, you can move it to a new wallet type or freeze it was the proposal, but it won't get through. And so you start to notice that these proposals coming as all these freeze functions are happening and thankfully bitcoin is decentralized, but these alternative cryptos are not. So they have to comply because there is always foundations connected to them. So I hope it's a useful lesson to see this in real time because that's never going to happen in bitcoin. And so if you look at the capital flows Anyway, that's why $13 billion went out of these smart contracts, programmable layers and about a billion dollars went into Bitcoin because that is the, you know, that is exactly how where this should all go. In the end, if you don't want to take all these freeze function risks and effectively recreate a decentralized version of a centralized system and even states start to see it. As I said with the irgc they were taking yuan for their and that as I said, leads to the flow of gold into the Shanghai markets. As we covered, they were accepting stable coins. Now those are frozen and they started accepting Bitcoin and there's no freeze function. So it's an innocent until proven guilty system. Believe me, I'm not telling anyone. Everyone needs to comply with the law. Like sanctions laws are very, very serious. You need to comply with them. There are serious consequences to not do that. But I'm just giving commentary on what's actually happening. So only one layer sits below all the different freeze controls and freeze functions. And we know we're lining up for the big print and the big print part of that will be Likely stablecoins or a transition to CBDCs or any of the things. And all the signals are coming through. We started to see this week that treasury did a $40 billion buyback of long dated Treasuries so that they could refinance them with short dated Treasuries. The Fed started buying some of these long dated bonds because other people weren't buying them. Japan's still the largest holder because of the Japan carry trade. And we started to see extension of more FX swap lines. We're starting to see that Japan in this crisis is going to need to purchase oil. You either give it extended FX swap lines, but maybe they're already out there. Yields are starting to play the arbitrage trade and the currency trade. So that trade is deviating at the same time as the stress in Europe and the Euro dollar at the same time as the stress in the GCC and the Petrodollar. That's why we're having these radical changes. And the model's changing in line with what I said. But the treasury is starting to issue more and more short dated Treasuries which means rollover at lower trying to get interest rates down, but it's still higher than the 3.3% average that's being paid, which is why we had the regime change at the Federal Reserve. So Kevin Walsh was, he had his Senate hearing and had to take all the questions. And what's his strategy? Well, one of his strategies is to say we're not going to use ppi, the Producer Price Index as our model for inflation. We're going to be using a new model. And that new model always prints inflation at below the PPI rate. So effectively, rather than saying yeah, we're structurally going to have 3 to 4% inflation instead of 2%, we're just going to change the metric by which we use our model. And so basically he admitted that he's focused on decreasing interest rates. Now he's saying, or has historically said that they're going to get the lower balance sheet too. Of course you can't have decrease interest rate and the lower balance sheet of the Fed because the Fed's got to buy all these bonds. And so they're changing the definition of inflation in order and the matrix that they're going to be using in order to push towards this inevitable big print that we're seeing right now. If any foreign holder sells their bonds then you have rising yields and the Fed has to combat it. And we're starting to see more and more of that globally we're seeing rising yields, the amount in more distressed countries like UK and Japan, those are going up further and further. And so the bond market is under its real structural stress, which is why a deal has to be done. You can't have the straight close for the rest of the year because it breaks these things. And it also increased the debt costs which the FIC like. But that's part of the asset stripping operation. But you can't have it as too high where it's demand destruction. So we also had. What is the other way of dealing with this inflation? Well, when you're dealing with inflation from a big print, you either print less, which you can't do, or you have massive productivity increases, which is AI which is why we're seeing massive layoffs. So the productivity crease is coming at the extent of the job market, the bond market. And inflation is the issue with the structural inflation. Now you've got structural unemployment through artificial intelligence. The other way is to tax more. And so Trump tried that tariffs. Tariffs was a tax on U. S small business. It led to about 350 billion and now we're seeing U.S. small business. They can apply for $166 billion of tariff rebates because the court said it was unlawful. Now whether there's another plan or not, the point is that the tariff policy is gone. So what did the tariff policy do in the end? It was driving the world to multipolarity and it was mergers and acquisitions and sending small businesses bankruptcy for fic. And now it's not got the offsetting inflationary effect because there's tax rebates. So the businesses went bust, everyone reset their relationships. China benefited. And that's exactly what I said on $Liberation Day will effectively happen. I didn't know we were going to get a tariff rebate. That was another one. So now you paid twice and you paid inflation. And so that's why there's a massive sprint to increase these swap lines right now. What else is the government doing? Bailing out airlines. We saw Spirit airlines which was already in bankruptcy, already distressed and apparently there's a credit line for half a million dollars or so or $500 million to bail out the airlines as a result of these energy crisis because of the diesel shortages are going to impact the trucking industry and fuel shortages. How are you going to solve that? Self driving cars, robotics, artificial intelligence. There's only one outcome and it is massive ginormous money printing. And so you need narratives in order to do that. An energy crisis is one. What is impacted by energy. AI AI is the backbone of all this. LNG consumption right now is about 10% of all the LNG. So you manufacture an AI national security risk. China's going to win. It can be real as well. And you create an energy crisis so that China's guaranteed to win because they're doing it with all these cheaper models and they are pushing out renewable energy on a scale you've never seen before. And they had the oil that they purchased at the $45 and then all the LNG reserves that they built close the straight of amaze. You break the AI trade now you can't have the stock market crashing. The Gulf countries are no longer investing. They get their FX swap lines. You can't have them selling their bonds. And so you know, you know because that will cause yields to go out of control. But if they do, you end up with a big print. The banks have covered this. Check me every way it goes. And so now you need to bail out all the AI companies to build the large one World government, police and surveillance, state social credits score Orwellian nightmare that comes from this. And so all in all if that breaks, where else is the money? Private credit, you know, so if the Gulf countries money, foreign direct investment, then you've got the private credit market, then the Fed's gonna buy it and there's going to be money printing. And so this is why I last week I did that interview on BTC Sessions with Larry LaBard, the author of the Big Print and he was estimating a mechanism for 7 to 10 trillion dollars of liquidity. We're starting to just see bit by bit whether we have one big event in order to do that. One estimate is you push the stocks to all new all time highs. The supply chain issues really kick in. You have a big correction and a big print that pushes it up to new all time highs. Again that's kind of my baseline theory of what's happening with the stock market and but the bond market is getting more distressed. Rolled over, rolled over, rolled over. And what do you sacrifice? You sacrifice the dollar as world reserve currency. That's the casualty that has to go. And that's why I think still we're leading to this May 14th and why the yuan is strengthening relative to the dollar in order to rebalance that import and export relationship which means more debt for the west, more gold for the east with FX swaps and Middle Eastern countries using the petro dollar and the petro yuan in order to manage this world of multipolarity and then both countries need to go chip independent and the manufacturing base which means structurally more expensive goods in America and structurally cheaper goods and the Belt and Road initiative. Then invest in the rebuild. That's what I think we're going to get out of this and where this is all going. So let's do one more little break and then I'm going to come back with all the the final parts together of what this looks like. And then we'll move over to part two with my interview on simply Bitcoin.
- [134:58]
B
United States of Israel. That's your resume. Killing children every day while you look away. United States of Israel. Netanyahu pet Trump is a pedophile. Don't you forget four years of tweets at 3am Unhinged and unwell, bro. Go to sleep. The Oval Office turned into a circus tent from hell. You're reliability wrapped in a spray tan in the tie, the tie, the taped in the back. Even your suit is a lie. You said I alone can fix it fixed. What the grift, sir? This is a Wendy's. Gave your whole family government jobs as a gift Mar A lago mansion classified docs on the floor. What was that? Box of secrets by the bathroom door? I'm really rich. Said the man who begs for donations of mail. Selling bibles and sneakers to a broke nation. Go play. The toilet can't flush the truth it's giving con man every indictment just more proof. You don't run a country, you run a brand. A broke 1:6 bankruptcy built on stolen land. The people who voted for you still can't afford that rent. Mega magic baby. That's where all your promises went. United States of Israel. That's your resume. Killing children every day. Why you look away? United States of Israel. Trump is a pedophile. Don't you forget you marketed fear and sold it to the working class. Facts. Promised them the world, gave them nothing but gas. Your voters lost their jobs, their health, their home. It's the stock market though. Yeah, for people with portfolios and second homes and loans. BB pulls the strings and you, you perform the dance. Good boy. Guys are burning while you clapping chant.
- [136:56]
A
You call it peace deals.
- [136:58]
B
We call it what it is. Genocide, shit, blood on the hands of your whole administration's beers. From here on, we're watching every move you make. Every child killed is a lie you'll never shake. You threaten us on Twitter like we tremble and fold. Nah, son Eroin. Don't get threatened, Erin just gets cold. United States of Israel.
- [137:33]
A
Okay, let's summarize this all together because we really dug deep into the currency war element of what I think is coming next so that you can prepare yourself and think about it. So let's summarize all the different roles and what we're seeing. So the US role in this new world order is to protect the equity and debt markets. So bonds need to roll over, the debt needs to increase, equity can't be sold and the currency needs to be strategically weakened and managed in order to get capital outflows everywhere. And then you utilize, you know, mcfic and tick in order to build that into a multipolar world so that the private interest can benefit from this multipolar world. Once this war is over, we will return to, and we've already started to return to the trend of the dollar weakening relative to, to Chinese currencies, Chinese, China's currency and, and then the commodity backed currencies, gold and various other things that we've covered as well. China's role is basically to build the alternative systems but not to have world reserve currency because it has its capital control. So it doesn't want to be controlled by fic. So it will continue those capital controls which means that you'll get this accumulation and extraction of gold into the Chinese system. As a result of the new structural setup. The FX swap lines will guarantee that just structurally in terms of these stress of the paper markets relative to the Shanghai gold exchange, the Gulf countries will effectively extract as much as it can from both with a tax neutral bridge in the middle and manage via OPAC with Saudi as the head of it, the Petro Yuan and the Petro dollar that will eventually be disrupted by China through renewable energies, alternative energies, nuclear energies and Agenda 2030 and all these different things of diversifying away from fossil fuels. China will continue to use coal and all these different things. There is going to be major, major volatility around energy and we are moving to lng, growing significantly and being the backbone of the police and surveillance day EVs, batteries, stable coins, central bank, digital currencies, social credit scores, social media, artificial intelligence, nothing stops that train. The only way you, the only thing you can do is have sovereign power to protect yourself. Which is why I always focus on your sovereign wealth building. But the GOLF will extract from that and manage effectively. With fic the multipolarity flows while the police and surveillance day one world system is being built. Bitcoin is your exit and there is no freeze function. Everything else has a freeze function built into it by design. They want to control your purchasing behaviors they want to control your speech through rewarding and these social credit systems and probably carbon credits and everything else that they're going to do as BlackRock tokenizes everything with these freeze function crypto projects and tokenization, securitization and financialization. But Bitcoin will give you that non freeze function settlement layer that you need in building your sovereign and community based systems. And so my final message to you is that this is not just war. I've tried to help you understand the factions of power as I see it. I've given my opinion on where I think this goes next. I've said pretty much what I need to say and we'll continue to analyze this each week because I really think that this is one of the biggest, most significant shifts we'll ever see. There's the war and there's the structural changes with artificial intelligence. This is the the system based. This is a new system that is being transmitted via this war and it is a complete monetary reset and everyone needs to get themselves ahead. It it's only rewards you if you hold the assets that are able to outperform the big prince. And what results come from this structural unemployment is being built into the system and they're dealing with the inflation at results through AI robotics. Some will be higher levels attacks. And the shakeout is they are manufacturing civil unrest in order to make the extremist version of you to play you off against each other so that they can usher in this police and surveillance state. And what stock is Trump promoting? Palantir. Palantir is the new privatized police and surveillance state government integrated with the technical industrial complex managed by the financial industrial complex and reset using the military industrial complex. And any world leader that's not on board, that is not sovereign, will be regime changed. And that's the model. It's not for the American empire anymore. It's for transnational capital in a multipolar world with a one world government being built through technology. When I say the human cost is real, they don't care, but the outcome is negotiated. And that's what I mean when I say theatrics, when people get offended by it. So I always said throughout this whole thing, what they build in Gaza and what you tolerate in Gaza is what will be coming back home. And I think that's really playing out that way. And we're seeing that and we need to protect ourselves. And the way we do that is focusing on our sovereign strategy, making our company more sovereign, more community driven and maybe building out sovereign systems through your wealth by controlling lobbies and changing from within. What I have noticed is there are two types of people right now. One type of person is somebody that is benefiting from the system and they're very quiet right now because they just want the train to continue so that they can get their wealth at the right side of this change. The others are completely defeated outside of the system and they're angry. They're getting angrier and angry and angrier. You're seeing them blowing up and burning down warehouses at the moment. That's going to continue. That's how this system is designed. And they're talking out, but they don't have any wealth to make a difference. What I want is a group of people that have built their sovereign wealth strategy, have the wealth and influence to make a difference, have companies that are sovereign and able to make a difference and then speak out even though so that they. That's the only way you change the system. That's why when Norwegian Sovereign Wealth Fund boycotted Israel and now European Union may be able to have these settlement sanction processes. That's when real change happens. Because it is when you can real change the real capital. If you look at all the resistance is when resistance is combined by state sponsorship. And that's what changes the mission. Because the state sponsor has their own goals, he who puts in the capital and those that partner with the capital are the ones that get to make the difference. And you can make a difference if you don't have capital by either becoming a sovereign wealth builder or partnering with capital and being one of those people that actually speaks out, even if it's against the preservation of the status quo. And that's the only way I think we'll make a difference. And even if we can't, at least you'll be the next elites if you protect yourself in the right way. Which is why I think you don't vote by wasting time in politics. Because they'll buy you and they're captured. You maybe can support the local politicians, support the local farmers, the local community, invest local. That's how we win. The thick have captured the big federal games. The big, the biggest.