Simon (8:41)
And if you can roll it over, then whoever's receiving the interest continues to receive the interest. And inevitably, who receives the interest? Well, it's actually the bank that can create the currency. And so we have this separation between central bank and government. And right now we're headed into what is called a monetization phase, where essentially you're using the government to stimulate the economy and you're trying to get as much debt out there as possible. In order to sell that debt, you can't actually go directly to the central bank. You actually have an investment bank that creates those products, those bonds, and then the bank is able to purchase them as a primary dealer in an auction. And you get a pretty complicated process. But in order to have it where you don't have the central bank buying directly from the government, you put the bank in the middle and they have a license to create that pound. And so they actually create the money to purchase the guild. And as long as the debt can be continually rolled over, and then you expand that out at the international level, and now you get into the real game of power Dynamics. And the first thing to understand is that this system was created in England. So it's interesting that we're going to be discussing UK today, because it was our creation. We copied bits and bobs from Amsterdam. They had the Dutch East India Company, which was the private corporate interest, and then they had the Amsterdam Central Bank. But we created this loan mechanism to fund wars. And that was 1694. Now, once you have that set up, you need the government to continually take on more and more debt. And the way to do that is you need to try and get a productive asset at the end of that debt, because you can keep rolling over as long as the government, as long as you're building your capital. And so the British Empire created this concept of mercantilism. And mercantilism was essentially, all right, well, let's create the best military industrial complex, the naval fleet. Let's create a private corporate interest, which was the British East India Company. Let's create a mechanism for the government borrowing the money, and then let's create a mechanism for funneling it back into the private corporate interest. And what would the private corporate interest do? Would do colonialism. If it meant, okay, let's get all of China's silver, let's get them addicted to opium, and build a bank called hsbc, or let's go to India, let's steal all their gold, get all their tea resources, commit a famine and make them fully subordinate to the British pound. And then we can use that as the base layer to continue the debt based Ponzi scheme. But eventually the corporate ends up with all the assets and the government ends up with all the debt. And so the end result of that was the rich get richer, the poor get poorer. This K shaped economy, what we are experiencing right now. And then the corporate class, the investment banks, they go find another country to do it to and in this case it was America. So you had World War I, the Federal Reserve act, income tax, everything repeated itself. What we did with the bank of England and what was after World War II, you had great Depression, confiscation of all Americans gold. You had a pump and dump scheme in order to redistribute the Roaring Twenties Great Depression of the Thirties, you had World War II and then you set up the IMF, the World bank and you forced the world because they had the manufacturing base, the military industrial complex and all the gold that came from British colonialism, mercantilism, Germany's gold, Russia's gold. After the Bolshevik Revolution, 75% of the world gold ended up in the Federal Reserve. And it was the same people that were funding all of those, the Soviet Union, the creation of the Federal Reserve, the Rice bank, the Warburg families were both on Federal Reserve board and the Rice bank, the German central bank's board. And so you have this scheme that ends up with all the assets and it always transitions to the corporate, the most incorporate, most influential corporates ending up with all the hard money and all the assets, the government ending up with all the debt and then a new world order in order to reset where you're going to do the experiment next.
