How The System Dies and How To Prepare | Lynette Zang

brings up more questions. I'm excited to dig through those today. But not everybody is probably familiar with your work, so I'll just give us a little bit of background on on what you've been working on or what you're working on now. Okay, Well, I've been working on understanding the markets basically my entire life. But in the past, I've been a banker, I've been a stockbroker and as chief

market analysts. I started studying actually before that, I started studying currencies in and so I'm really all about currency life cycles. I started seeing the repeatable patterns and I went to I t M in two thousand and two after my formulas, well not I mean, the general formulas confirm that we were at the end of this currency's life cycle. So you know, that's really what I focus on,

is UM reset. You know, I've been watching the reset occur and the system died in two thousand and eight, so that's what I've been working on ever since then, really paying attention as we transition into a new really social economic and financial system. You know latest changes. Of course, they don't change behavior, they change the rules. So you know that's what I really focus on and what I'm focusing on right now as well, is all the rule

changes that are happening. Yeah, that's eight and and uh for people watching my channel, they know that's what I kind of focused on too. Um. Yeah, I forgot to say that you are. You are the chief market announced at I t M, so I forgot to plug that, so make sure you go follower there will make sure to link that down below. But UM, you know, you

said that you've been studying currencies much longer than me. Um, that's interesting, and you said you, um, you know, following these currency life cycles cycles is something that I'm pretty big in and I have some questions to ask you about that. But you talked about um, the day the

currency died was two thousand and eight. Now, um, there's a lot of days that it died, right, Like, I mean, so yes, but but I mean like maybe maybe the dollar died in thirteen when the Federal Reserve was born, or maybe it died in nineteen four when the Breton Woods agreement, or maybe it died in seventy one when Nixon took it off the standard, or or oh wait, so why do you say? Oh eight, Hey, guys, let me just interrupt this interview real quick, just to plug

the show sponsor, and that is Block five. Now. Block five is doing amazing things in the bitcoin and finance space. As a matter of fact, they've cracked some really big news by bringing on the x c f TC UM chair Chris gian Carlo Um. And they are one of the most transparent, most heavily regulated UM companies inside the United States, which gives me a lot of trust into what their services are. Now, I've recently did a video talking about how to retire off bitcoin, and you can

do that by leveraging debt and interest against bitcoin. And Block five is the number one company in the United States or maybe in the world to go to and use um. They are leading the charges are paying interest on your bitcoin if you park it with them, or you can borrow against it. Now, as I broke down in that video, you can borrow against your bitcoin, and when you take debt against it, it's not taxable. It's

not a taxable event. You can use that debt for anything that you want, including to live off of, to leverage up and buy more, or roll it into another asset. UM you can do something like I've done recently, like sell some real estate put that money into bitcoin. Now as that bitcoin price has risen, I'm able to borrow against it and go back and buy the same real estate or something similar, and I still own the bitcoin,

and I also owned the new asset as well. Lots of ways you can do this UM and Block five is the company that I recommend. Down in the description, I have a link that you can click on. If you choose to use that link, you can earn up the two fifty dollars in bitcoin just for using that link.

So check out block fine Now. Well, I say oh eight, because that's when they really ran out of tools and the only thing that they had left our interest rates and just creating more money, and and you're absolutely right, because it's been dying in slow deaths since they brought in the Federal Reserve and started to remove you know, gold,

something real from backing our currency. But yeah, two thousand and eight is when they dropped interest rates to zero, which is their biggest tool, and they've not been and I'm talking about global central banks, so it's not just the FED, but it's globally. Uh, And they've not been able to raise them. Of course they can't. So really all they have left is printing money, de valuing the currency, and getting set up to take us into a new system.

So that's why. And also Christine Lagard in two thousand and nine in a Bloomberg interview which has gone now, but use the word reset about twenty seven times in that half an hour interview, which you caught my attention. Yeah, that's interesting. You know, I think about it in terms of playing a board game, right, where like we're playing scrabble or whatever, and at some point you're out of moves, and when you're out of moves, what do you do?

Like you reset the game kind of a thing, And so that kind of comes to mind when you talk about that, Um, you know, one thing, going back to that currency a little bit further. Uh, I kind of rattled off a couple of days, so you know, the data Federal Reserve was created, they started printing more currency obviously, UM, the Brenton Woods Agreement maybe I don't know, kind of brought it back into a peg at least. And then a lot of people talk about like that seventy one

when Nixon took us off of that gold standard. Um. But you know, another way that I've been thinking about this just recently, really maybe in the last month or two, is that we never actually came off of a gold standard. What he did is removed the peg. Right, the dollars still, I mean, gold still priced in dollars at the end of the day. The market has just repriced gold, uh, and the dollar exchange. Right. Maybe he just removed the peg. We never got off the gold standards. Is that a

way to look at it? Um. I wouldn't really look at it quite like that, because while you are right, and I mean and gold is is valued in terms of any fiat currency anywhere in the world, what created the gold standard were the restrictions that having gold backing the currency created, So it really required fiscal responsibility. In seventy one, Nixon handed what what really what that really happened in in seventy one was that Nixon handed over full control of inflation to the central banks to the

private banks. And what do banks know? They know debt and they know interest. But um, so you could say that it really it's been dying since nineteen thirteen. But no, we're not still on the gold standard as a government or as a country or around the world. But I

personally am absolutely on the gold and silver standard. Yeah standard, you run your account on those, Yeah, I guess it's just like a little bit of a I love to look at things from different angles and different perspectives, and sometimes it gives me, you know, more clarity, um, you know. To to your point though, like you said, well, when we got off the gold stender, it took away the restraint, but like I could also say, we never had restraint. I made a video recently and I was refuting Ray

Dalio's point. Um. He said that the government would make bitcoin illegal because they because the same reason they made gold illegal, which was they didn't want a competing form of money. That's what he said, And I refuted that, and I said, well, I don't think his understanding of the events in history are correct, because in thirteen the Federal Reserve was created, and they printed way too many dollars, and by nine thirty three, so back to that restraint,

they didn't have restraint. They printed way too many dollars. And so by nineteen thirty three the government owed gold. They owed gold to creditors, and so they didn't owe dollars, they owed gold, and so they took the gold to pay the creditors. And it wasn't, at least in my understanding, it wasn't that they didn't want to compete in for the money. They owed the gold and they needed the gold, um and so. And then then of course they will

go ahead and talk about it. Can I kind of jump in there, because you know, really what happened during this I love that period of time, and I feel like we're living through that again with the Roaring twenties. But when we were on the gold standard, and you're right, they owed the gold, so if an individual did not like what the government was doing, then they had the ability to walk into a bank and convert their dollars into gold, hold the gold out of the system and

create greater restrictions. So um a competing currency or just taking away the public's power, because that was a public power that if you had enough people that did it, you know, then you have a run on the banks, etcetera. So they did own the gold. You're absolutely right about that, but it was too more to the citizens. In seventy one it was to the other government's global governments. But thirty three they had to take that control away from

the citizens. So you think it was more about taking away control than it was paying the creditors because they didn't want to default on the creditors. Okay, interesting. I value your opinions, and I want to say I love too. I love what you said earlier about looking at things from a different point of view, because when you do that, it is amazing what you see. So I definitely love

to debate because it opens everybody's eyes. Years ago I worked with I had a company I was running, and I brought in like this fortune one hundred consultant, one of the smartest guys ever, and he would look at a problem and he taught me this, and he's like, you can't do that, Like there's nothing in the world like if I had a magic wand like I couldn't create a solution, Well, of course you could, okay, so then we can write and it just opens up your

mind to things you wouldn't think so anyway. Um So then if I was chasing that conclusion, so let's see where this goes. So then I was chasing that conclusion to like why the government wouldn't make gold illegal today or bitcoin illegal? And and well either right and uh, and I was saying, well, the differences. They don't owe anyone gold today, they don't own any one bitcoin today. What they owe people are dollars, and they could just print more of those. Um So that was kind of

my conclusion. I guess what's your thought there, Well, you know, both gold and the new digital currencies. I think it's going to be really interesting to see what happens when the central banks really come out with their digital currency. Because when you look at the Bank for International Settlements money Flower, there is a small space on there for private cryptocurrencies, but there's that actually larger space for commodity money, so gold and silver and then all the rest is

under the central bank's control. But so I think that they are going to you know, allow a certain amount of it, but I think it will be very controlled and heavily taxed. And um, I don't think they're going to allow any competition to their money monopoly. But it will be interesting to say the battle has begun and it will be very interesting too. So I don't want to I don't want to dig in too much on that right there, because that's gonna be like the end game,

which we're gonna get to at the end here. So let's kind of build this story up a little bit. So the currency died No. Eight. The FED has two tools, interest rates and money creation. Interest rates are basically gone, they're at zero, their negative whatever, um. But money creations almost kind of gone to we're kind of maxed out

on how much money we can create. And really I've been talking about like the Feds really, you know, kind of stuck where like, um, if they keep printing the currencies dies, um if if they pull back like the bond they have to save the bonds with the currency. Right now, like it seems like one or the other. Right, they're trying to keep bond rates from going up too high so they could do the yield curve control. But by printing more currency, they're going to ruin the currency,

so like do they streak like? And so they're kind of stuck here. Um, but I heard you say something in an interview that really stuck with me, and I want to get your opinion on this. So it seems like we've heard this since oh eight, kicking the can down the road, right, instead of doing the hard thing, peeling the band aid off or making the hard decisions, today,

they keep kicking the can down the road. But you said at one point that maybe they're not trying to save the system, maybe they're just trying to keep the system alive until they're ready to go in a new system. Tell tell us about that. Well, first of all, I just got goose bumps, so it's absolutely accurate. But look, the very foundation of the Fiat system, the government based money system, is inflation, which guarantees loss of value over time.

Even though nominally, you know, you had a twenty dollar built ten years ago, you got a twenty dollar built today, it's still a twenty dollar built, so nominally exact, but what it buys you. So, I mean, these guys are smart, they know the system is dying, and so yeah, I I definitely think that kicking the can has been going on since that's not actually something that's new. But I think they know that we're at the end game because

every currency, actually everything has a life cycle. I'm definitely at a different point at sixty six than I am at my granddaughter at six years old, and currencies are

no different. And really, you know, if you if you look at the monetary velocity chart, what you see is that in the M two, so a little bit broader base of money, it peaked in and so then they did financial engineering and they jury rigged this, and they jury rigged that to create more money in the system, but it still did not increase the speed at which money changes hands. And you know, really good point. All

they have left is money printing. And you know, I've been I pay a lot of attention to the monetary velocity chart, and what I'm seeing is that it's declining again. We got a little teeny bump up. I said, we have to see, this has to be pervasive, and it's not. It has not been pervasive. It's the most current graph. I was just looking at it earlier. Today it's declining again.

So all of the rule changes. Um, you changing reg D, which they did in again to create that velocity by allowing banks you make a deposit into your account, and I think this is critical for people really to understand. You make a deposit into your account at a bank, they sweep those funds into sub accounts for the bank. They can then use that equity to borrow for their benefit and do anything they want to with it. But really importantly that means they don't have to hold as

much in reserve. Okay. Now, currently there is another regime shift that just went to final on I think February one of this year, but they put it in place in March of last year. A change in reg D where savings deposits and money markets, which are considered sticky in other words, you put the money in there and you're going to keep it in there for a long time, have been shift did into the same area as checkable deposits, so you're right to check. So that again reduces the

bank's requirement to hold reserves. But what does that really do to the money that you are holding in the bank thinking that it's safe. It makes it less safe. It's more leveraged out for sure. Yeah, especially with everything that's happening with the banks with derivatives, you know, and the and the tools that they've used to hide the value at risk, but your deposits aren't safe. Yeah, yeah, that's interesting. Um, it seems like this whole system, I mean,

we're built, as you said, on an inflationary system. It's all artificially. It's a debt based system. And so it seems like I like to I always like to take these very complex subjects and like try to break them down super simple, like first principles. I feel like if I can understand them there, then I can understand at a higher level. And I look at things like natural law,

like gravity. I don't care, you know, as I get more money and more technology, I can defy gravity a little bit, but I'm always going to have to, um, you know, be bound by that law. And we have another law that's like um sewing and reaping. We must produce before we consume things like that, and so like um, another natural law I believe is that human ingenuity always leads to deflation. We create a room bus so it

sweeps the floor. I don't have to sweep it. Now I wanted a robot so I don't have to clean in the house, like you know what I mean. We I used to buy DVD s and now I stream all my music for my my movies from five bucks a month. So it's like natural deflation. So that's like natural law is like deflationary, but like we live in an inflationary monetary system. That's like fighting against natural laws.

And it almost seems like the world or I should say, the markets know this, and they're always trying to de leverage, and then the FED keeps trying to pump it back up. Well, I would say that that's really, um, really a good and accurate assessment, because inflation and deflation. You know, people think they're two different things, but they're really not. They're just the flip side of the same coin. And the only way that you can fight deflation is with inflation.

And at the end of the day, when you look at what they're doing, whether we go to negative rates, which would really be hyper deflationary, right, you're gonna go out and spend if it's visible to you that the balance in your bank account is going down and you know you're not spending any money just because of the negative rates, So that will encourage you to go out and buy anything that you think is going to hold

its value better. And the same thing happens in hyperinflation, where you see the value declining because the price in nominal terms is going up so rapidly. So you're gonna push again that consumption forward. So you know when I

get that question, I get that question a lot. Well, what about deflation versus it's really at the end of the day, it's going to both of them are going to push the consumers to consume, to just attempt to maintain value because the dollars don't or the euros, or the end or any government money by design, it does not, but it does enable that massive amount of income and wealth and equality, which is something else that has become

very very visible to most people. And I don't know, maybe create a revolution, maybe there's a revolution that's already started. You know, I don't think they understood what they were fighting for and occupy Wall Street after acial crisis that happened in two thousand and seven and eight. They don't understand it. Yeah, they don't know. They didn't understand it, so they didn't really have a foundation. I don't know that people really fully understand it now. But I think

I think more do going back to your bitcoin. Yeah. Well A good point of this is I just I just did a video on YouTube, I think yesterday, and I talked about UM. I was talking about how Wall Street and institutions have started taking over rental real estate across the company. And then I turned it into a Twitter thread, and um, I got all these comments and some people were like, we need to make this illegal.

We need to make it where institutions can't buy no, no, investors should build to buy single family homes and all those things. And I'm like, look, that's not the problem. The problem is there's a money printer, and the money printer is giving it to the banks and they're getting free money and buying this up. Shut the money printer off. And so I think that's exactly what we're saying here, Like people see the problem like, wow, the American dream,

it's the great American real estate heights. That's what I called it. Um. But I watched that video. It was excellent, by the way, Okay, thank you, UM. But but it's it's not about making new laws turn the money printer off, right, right, you know That's what I said, that they don't change behavior they just change the rules that make that okay legal hidden what have you. The financial engineering. Yeah, the problem.

The problem are the people at the top that created this system that is specifically designed to have just a few. I mean, it's kind of like we're going back to the feudal system. Just have a few at the top that own everything. Hey, you will own you will own nothing, and you will be happy. Yeah, so happy, so happy, and gets who gets to dictate everything? But yes, and

we saw that right after two and eight. Yeah, and that's some corporations, Blackstone Estate, and that's exactly that's exactly right. It goes back to a feudal system where the surf just rent the l end right from from those. So that's that's that's a that's a good segue. So let's go ahead and transition into that. Obviously, the own nothing, be happy, great, reset, currency, reset, you know, whatever we

want to call those things. Um, it seems that the NGOs, the three letter organizations, they have this agenda for us. Um one that I'm not happy and I'm not going to be content with letting happen, so I've been working against that. But um, they have this agenda of of own nothing, and be happy, which means, of course, well, if we don't own anything, then who owns it? Right?

We just talked about that, that serfdom um and this currency reset that's kind of happening, and it seems like through these booms and bus we get these wealth transfers. So that's what I made the case in that video. Hey, they suck everybody into real estate and then they crash it and then the bank's own it. Um, And maybe that's kind of the way that we get to that right uh maybe right right now, the stock markets sucking everybody in at all time highs. Everybody's bailing the currency

to get into stocks. But then what happens when that crashes? Um? What do you see as like I mean you said, and again I asked you that question, like maybe they're not trying to save it, they're trying to wait until it's ready, um, so ready for what? Like what do you think the plan is or how does this kind of unfold? Is it crashing the markets where people lose everything and then they're forced to rent and then they introduce a new form of money. Do you have like

a kind of a working thesis on that? Well, you know, absolutely never let a good crisis go to waste, right, And I think that they've taken the pandemic. You know, I hesitated only because I've read a lot of the Wuhan lab notes. Yeah, so they've known about it for a long time. But it and and we're on YouTube, so right right, So, but but they've taken that opportunity to squash a lot of the revolutions that started, you know, right around the Great Recession when the income and wealth

and equality really occurred. So just interrupt, interrupt you. I hate to interrupt you. But for most people, they don't know before that happened. I believe there was eight countries in the world with like a million people each marching and then it was gone exactly. So you know, we use they they use these crisis We can use them too.

But they use this crisis to transfer the wealth because who's going to complain if they can get you to volunteer, which is what we're seeing in the stock market right and the real estate market to some degree, because there are people that are bidding up individuals that are you know,

paying way above market current market which is inflated anyway. Um, But what I see is a huge crisis, then everybody going help me, help me, help me, and then they agree to whatever they have to agree to to survive. So I definitely see U B I coming in universal basic income because the whole entire your social structure is changing. I mean, it absolutely is, and I think we've already begun that transition to it. But they've built a consumer

driven economy, so the consumers have to consume. I just looked at it again this morning. We have right now a savings rate of about twenty seven I think it's twenty seven point three percent right now. Before the Great Recession, it was the lowest that it had been going all the way back to when they started tracking it. Now it's really high because of all of this money, that taxpayer money, I might say, that is being given away,

and you know necessarily, I mean they couldn't. They couldn't do what they did in two thousand and eight in by giving it just to the banks and the upper echelon. So they had to spread that out so people feel like they're getting something. But I'm hearing lots of stories about businesses having trouble hiring because of all of those added benefits. It would cost them more too, uh go to work than it does to stay home and collect

the benefits. So you know, I see lots of free lunches so that people go along and they don't revolt against it. And I also see you know, I think right now is like a twenty nine twenties position. You know, don't worry, be happy because of all of the money printing as they were kicking off this whole system, and that that's where we are. So ultimately there will be a crash because they need to have that crash when they take that money, spick it away, um, and then

people will accept. I mean, I hope this is not true. I really hope this is not true. That's what your work is about. That's what my work is about. But for most p bull not paying any attention at all and thinking things are just normal. Well, we're about to see a major rash of inflation that is transitory, but amition is never really transitory. Can vary, but it's constantly eroding the value that you and I work for, the

purchasing power value. That's why I convert any excess into gold and into silver immediately so that I'm back on that gold standard. Hey, sorry to interrupt this video just one more time. I'm not running Google ads, so it's actually way less interruption than I normally would have on a video. UM and that's because it's sponsored by block five UM. They are opening up the world of bitcoin and financial products offering to pay you interest on your bitcoin.

Um better than own in a rental property that you have to manage and control and have the risks. You can just earn interest on it, or you can leverage against it. Now, I plan to hold my bitcoin forever and literally never sell my bitcoin. So how do you do that? Well, if I need money, I don't want to sell that bitcoin. I'm gonna pay tax on it, all right, I'm gonna end up with less, and I don't have the bitcoin anymore. So a better way to do it is to borrow against the bitcoin. So I've

put all my money into bitcoin. If I want to buy a car, or I want to buy a house, I can borrow against it at very very low competitive rates. Get my house, get my car, whatever that may be, and get to keep the bitcoin. I've done a whole video on this. You can find it. I'll link it down to the description below. How to retire off a bitcoin without paying taxes, and you can do that with block fight services. A link to the video down below. I'm also going to put a link to block fight.

If you choose to click on that link to check them out, you can earn up to two fifty dollars in free bitcoin just for using that link. And that's it. Let's go ahead and get back to the interview. I don't mind the restrictions. I kind of like them. Yeah, now I want to talk about this. You you studied, uh currency cycles, and I believe there's a new currency. I made a video I called it the Secret Money Layer,

and uh, I'm talking about the I M right. Um, before we get into that, though, you you brought up derivatives, and I watched a video from you, I think months ago, and you were talking about, um, a reset of the derivatives market or or shifting the index, the libor index over into the software index, and how that's an unknown amount of money, a quadrillion dollars potentially whatever even that means, whatever, whatever even that means, and uh, like anything could go wrong, right,

we don't know, and and if it does, I mean that that's a quadrillion dollars that could like crashed and they were working on a test, and then like things kind of went dark on that. What phill Us in on that a little bit, Well, last October, you know, the the originally the end date for the libar, which is an interest rate index against which all contracts have been well, the eyeboars have been written, and last August the number was nominal number was six forty trillion, which

means nobody knows the true value at risk. It just what they agreed the contracts were worth. And but it once it was leaked that this was a stated number, so that was during the Great Financial Crisis. Well, then they had to change that. So they ran a test in this country on eighty trillion of those derivative contracts to convert them into SOFA, which is the new benchmark that the US Federal Reserve has created, other central banks have created some other ones. And and like you said,

it went dark. There was absolutely no mention of it. And then about three weeks ish something like that, they came out and said, well, we're gonna postpone this until three which is interestingly enough and coincidentally enough, the same date that the FED anticipates having the fed coin ready for distribution. So I think they did the test. I think the test failed, and so they had to try to buy more time. But it's a big experiment because

it's never been done before. Yeah, and and one wrong move could trigger the biggest crash we've ever seen in the history of mankind. And it could just be an accident, Yes, exactly. I mean, you know, just look at I think two thousand and eight was just a little taste of what we have in the future to the destruction of the entire current system. Justification then, because you never let a good crisis go to waste. For all the new systems

that they're wanting to put in place. But if we have the same people running the new systems as the old systems, then you have to wonder whose benefit they will be run for because it's not going into b or is some mind? Yeah? Now, um, going back now, switching back to that currency a little bit. So we have obviously, you know, the the US dollar reserve currency of the world meeting the end of its life cycles as you're saying, um, and and and the FED running

out of tools left what to do. Um, but a lot of people, I mean, I'm sure you're familiar with with the Triffins Triffin's dilemma, and maybe having the reserve currency of the world isn't such a good thing, especially for the American people. It benefited for a little while, probably got us through the eighties, but right now it seems to be actually the weight around our neck pulling us to the bottom of the ocean. Um. And so maybe getting and we see the world is de dollarizing.

I mean it's been de dollarizing pretty fast at a rapid rate right now between Russia, China, Iran, et cetera, Golden oil um. So it's de dedollarizing really quickly. Um. And then we have this I m F s DR thing starting a six fifty billion dollar SDR allocation um, Like is do you see? And I think that benefits China. I think China probably benefits from going to a SDR and they're probably working with the I m F. UM.

Do you think there's a sort of maybe a transfer from the US dollar reserve currency over to like an I m F SDR basket in the near future or in the future. That is exactly what I've been talking about since two thousand and nine. And China was actually the first one to bring it up and say what about the SDR. And the SDR was created to take over back in sixty nine to take over as the

world reserve currency from the US dollar. So yeah, they have a substitution fund that is set up so if you're holding any dollar denominated assets, you just deposit them in there. And then at least in theory, the I m f can regulate the speed at which the dollars come back to the US. So can it keep inflation, you know, at bay or at a reasonable level so

that people don't realize what's happening. But I definitely the SDR makes sense to be the world reserve currency run by the I m f M. I'm not saying I like this, mind you, but I'm just saying it really is logical because it's a basket of currencies, and they can expand that basket to include every currency in the world if they want to. I mean, we've got a

hundred and eighty nine members. They are hundred and nineties countries, so you know, um, so therefore you could have a global currency, the SDR, and then you could have that easily translate into local currencies. But the other part of that, and in this new digital world revolution that we're going into. The goal is really and I mean it's a double edged sword. The goal is to hold title to all wealth on these transferable and you know coins that can

also travel around the world. So if you have equity in your house, for example, and we go through another crash in the real estate market and people are desperate like they were back in two thousand and eight and accepted really crappy terms, um, you know, then maybe one of those terms is that we'll okay, we'll give this to you, but you have to hold title on these coins. And by the way, they're all broken down into dollar amounts. So now and this is from the I m F,

that's not from me. So now you can go to the mall and you can see that that suit that you want or something that you want. Because we're thought to we're taught to think short term and spend your equity, and somebody in China or elsewhere in the world can

easily own the equity in your house. And if you've chosen to spend it, who A, you're gonna blame so um and and all of that would be under the control of the I m F, which are Treasury secretaries and central bank chiefs, unelected officials that I don't even have to pay taxes anywhere, Yeah, because they're part of the I m F. Yeah, it seems like maybe one

of these these game plans would be as well. Where like, you know, banking is sort of sent decentralized in a sense where I have my local bank and regional banks and commercial banks and they all work under the Federal Reserve, which is a US bank, and then other countries have the same set kind of set up with a central bank, um, and then we have the B I S or the I m F above that kind of the central bank

above central banks. So it's like this the stack, right, And you know, I go to my local bank and say, hey, I want to set up an avocado stand, and he's like, Mark, avocados don't grow here. That's a stupid idea. I'm not going to loan you the money. Or that's a great idea. And so there's kind of like that local knowledge and

and that's that decentralization, right. But the central bank digital currency allows the central bank to basically send money directly to the depositor, and so you could you could go in theory. I think this is what you're saying, the I m F could issue a SDR CBDC directly to me bypassing the whole stack, getting rid of that. Is that kind of what you were saying or you're seeing, Well, then they definitely could do that, and they're definitely talking

about doing that. Um. I think what they're trying to figure out right now. Like your local bank or your regional or wherever you bank, you have a sticky relationship with them. I mean, you don't go and change banks all the time, and so they kind of know who you are with the technology, they know your habits. The central bank unless these two merge the scent and and they're under the auspices of the central bank, they don't They don't know who you are and they don't know

what your habits are. But they need all of that information, which they'll get. They will, they will definitely get the information. And and therefore, you know, for governments, they love it because hey, they can do lifetime taxes, right, they can just follow that whole string. But the central banks then have immediate control of your of their policy and to know whether or not that policy is working and if they want you to consume. They just push those interest

rates deeper into negative territory and inspire that. So while they can go direct to consumer, I think it's a little bit more challenging for them to do that, to have all of the data, you know, I mean, what would they do absorb all of the data. I mean, you're seeing the mergers between thin tech and traditional banking. We've been watching that for a while because of those two dynamics. The banks have the long term sticky relationship, but the internet companies have all the data and no no,

all your habits. So bringing those two together is really powerful. You layer on the five G and and the AI and next thing you know, they have all the data and they can sift through it and sort it all. You know. Ah, man, that's a lot of stuff, and it's a it's a scary world. I think. Uh. One thing you had started out in the beginning and you talked about, um, you study currency cycles, and then you

mentioned social economic and financial system. I have this working thesis I'm working on about cycles converging, and I'm looking at them. I like to always pull history into my my videos because I love I love the historical lessons there and I've been looking at like a like a political cycles, economic cycles, and technology cycles, and like it's interesting how they're all converging right now. UM. One of in the political or societal cycles, UM, one of them.

There's several of them that are in that bucket. One of them might be like the fourth turning, UM, where like every years you kind of have the cycle. And in that fourth turning, which a lot of people think we're there right now, we see massive change happening in a very short amount of time. And so it seems like that's kind of what we have this decade. Here we are, you know, one year in the decade and

by nine years from now, you want nothing to be happy. UM. We do know that there's massive change in front of us, and the the NGOs, the non not elected, the elites have one you know path for us. Hopefully we have a different path, UM, and we know we know that it's going to be turbulent, whatever is going to happen. So I'm curious what your kind of thoughts of your

game plan are for that. UM. I heard you earlier talking about I think it was with our our mutual friend Jake, UM kind of talking about maybe you know, taking some of your wealth, which I think you're kind of storing in this hard assets, maybe putting some into cash flow assets, trying to kind of time that at

different stages. Maybe could you walk us through some of that what you're thinking, absolutely, because looking at the cycles, there are just repeatable pattern and so even though you can't guarantee the future, the most likely outcome, if the same thing happens, then you want to be in that position.

So it's it's good to understand them. So personally, what always happens at the end of a currency's life cycle, when all confidence in the government and the currency is lost, is they bring a component of gold into the new currency. Then that gets people to trust it again and and then over time they will go ahead and remove it.

So for me, I want to be in the currency that they're going to reset the fiat money too, which is gold, and then gold goes to its fundamental or its true value, which is really Again you know, you're about history. So what is the most important function that gold performs. It can perform a lot because it's used across the entire UH global economic system, But in my opinion, the single most important function of goal old is to hold its purchasing power intact. And that goes back to

what you were talking about. Why you've got gold somewhere around eighteen hundred or so at the moment it's breaking out. Yeah, yeah, it's still extremely suppressed. So what I'm in is I'm in my accumulation phase where I accumulate silver for day to day barter ability. That's its functionality for me, and I accumulate different kinds of gold for UH to do different functions. Like we're talking about real estate, and the biggest threat for most people are number one the mortgage

and number two the property taxes. And we've certainly been seeing a massive rise of property taxes. That's how governments get them money, municipalities, etcetera. And I expect that trend to continue. I absolutely agree with you. Um So I'm I'm just accumulating as well as puting in food, water, energy, security, community, and shelter. So that's that's the whole mantra. Now, when I see a confirmation, I mean, right now, you've got income producing real estate here just as an example, and

you have gold and silver down here and value. But this will flip flop, and then my intention is to grab some of some of the gold and converted into income producing assets or even the cryptocurrencies that are going to survive this because I don't think anybody knows. I mean, Wall Street is clearly chosen Bitcoin, and you're seeing a wider and wider adoption, so that could certainly be the

one that survives. Isn't that little flower that's allowed, but um, that doesn't really generate income, but the income producing assets like rights, water rights, mineral rights, um, income producing assets, real estate, etcetera. So that's my personal game plan that then will generate income that I can never outlive. And then it's also a foundation if it's set up properly, to transfer the wealth to my family, my children, my grandchildren, etcetera,

who hopefully will take good care of Yeah, what I've accomplished. Yeah, So I I the way that I kind of see that from a big picture, and this is exactly the way that I see it as well. But kind of what you're saying is that we want to put our money or our income on whatever, our money into a good storehold of wealth that because we see massive turmoil ahead and probably a massive crash ahead, right, a big

crash ahead. Lots of economists, and it seems pretty easy to see that maybe a market drops in front of us. So we put our wealth into a storehole that can hold that through that drop, and then we take that and buy at the at the cell of a lifetime. And now we can buy assets that are that are super cheap because we've been able to preserve our wealth. And so we talked about in that video I just did kind of how they used the two thousand eight

crash to transfer the wealth from homeowners to banks. Well, if you would, if you were able to hold your wealth and buy at two thousand nine, ten eleven twelve, you also made a lot of money. So it's about being able to keep that wealth to buy in at that cell print price. Right, So exactly right. Um what I'm and I'm a real estate investor twenty years, have

been investing in real estate. Um. What scares me a little bit though, is then we go to a little political stuff where you see you know, obviously the rent you know, moratoriums or eviction moratoriums. We see uh some you know, Rashida whatever her name, and you know, uh

senators you know, calling for an end to payments into rent. Um. So then you kind of and as you know, you've been studying this long enough, like throughout times like this, you have this populist uprising, right, and so it's easy to see how that so well, it's it's hard to see, like, man, how does real estate hold up if the government says you can't collect rent anymore and by the way, you can't kick people out. Um, that's gonna be pretty difficult. Well,

you know, it's not just this one little piece. It's all of the products, the Wall Street products that have been sold into the pension plans and and other retirement plans, the income from that rent that have been you know, turned into products and sold. So it's kind of like this massive domino effect. And you're right, it is hard to see. The other piece is with Wall Street buying up all the real estate? Are they they're doing it?

Um borrowed money and at some point that debt has to well, number one, it has to restructure unless the language is in there. And what I also found really interesting with the transition from libor too in this country so far is that they were having trouble getting adoption and when they had, when Powell had the opportunity with all the debt that they were issuing to force that market. He did not. He fell back on libor. So that even goes to these contracts. What's the fall back language

and the contracts. I'm sure it's in there that they can transfer from libor to so to so far because it's too close to call. But um, if all of that leverage is in the real estate market and interest rates move up and that debt has to be either well you have to service it, roll it over, or default on it, I think there's going to be a tremendous amount of real estate that comes on the market. And and once all the moratoriums are lifted, but hey,

let's make a permanent. They can't make a permanent because right now they're subsidizing the rents and the mortgages that aren't getting paid. I mean, and we never hear anybody talk about that, but they have to because of the products that are created from these things. I want to uh, I want to start transitioning. We'll kind of close our closing this out. I have a kind of a question I want to ask you, but before we do, I uh, I want to take a second just to address the

cryptocurrency part. UH, you watch my channel, so you know I'm a I'm a bitcoin guy. The one thing I would just draw your attention to is that, uh I was. I became a very big gold gold bug, and I still talk about gold quite a bit on my channel. Um. What I realized after a while, it's because we need sound money, right like we we can't have money. Money is communication. Money is what what coordinates the entire world,

the entire economy. And when they start pumping fake money and it messes up communication, we end up bubbles and everything everywhere. Right. Um. But after being a gold bug for a long time, I found out really what I am is on a sound money advocate. I'm definitely advocate for sound money, yeah, um, and having that restraint, right,

we can't just artificially create that. Um. The one thing I would just point out to you since you have me and maybe you have a question, but um, what I believe that the real innovation, the technological revolution is is um censorship resistance. And so from the beginning of time I had a problem. I had to build a kingdom because your your kingdom was gonna come attack me and take my goat chickens and my gold from the beginning of time, we've had to protect our wealth. The

government is here to protect the wealth from other countries. Um. But now I have I can store my wealth and a censorship resistant way that nobody can take cryptographically security twelve words in my head. Nobody can take it, not even a government. Now there's not one of the other eight thousand cryptocurrencies that have that ability. There's only one, and it's because of the network that's been built out. And to me, that is what changes the game. And I love gold, and I, like I said, I talked

about it, I recommended I own it. Um. The problem is that gold didn't make the jump into the Internet. So you and I are zooming from across the world. Um, but I can't send you gold, but I could send you bit in right now, and so like there's there's

an advantage there, But really it's that censorship resistance. So I guess the point that I just want to make is that when you talk about crypto, and you talked about maybe the one flower that makes it out of the eight thousand or whatever they're there, there's only one that has the property. It's kind of like gold is the only one that has the property. Is there's a

bunch of other metal, but there's only one gold. And so there's a there's eight thousand cryptos, but there's only one that's censorship resistant, and there will never be another one there. There can't ever be another one. So anyway, I thought i'd throw that out there for you. Well, I appreciate it because I really learn as much as I can, and I learn from everybody that's out there, and I I don't you know, I'm not an engineer, so I don't really understand how all of that works.

But I do know that bitcoin. They even said it on CNBC where it used to be outside of the system, and that's the way it was sold. Now it is completely inside the system, so and they can trace you know, you may have that where they can't get it from you. Um, however, they know when you're spend thing end so UM, I think there's uh, there's two things there. One bitcoin is anonymous, but it's not private, so the whole blockchain is open. But that's the whole point, right, So the currency system

is permissioned. When I moved to Puerto Rico, took me twenty six days to get permission to open a bank account. Two billion adults in the world aren't on the banking system because they don't have permission, but anybody could download a bitcoin wallet and beyond the bitcoin system, so it's permission list, and it's also trust list. With gold, we have to trust or with the dollars, I have to trust the FED not to just create a bunch more money. Uh, if they have gold on the glos intero to trust

they have the Golden vault um. But bitcoin is is trust list because it's an open network, so anybody can see it. But that also causes anybody to be able to see it, So it's it's it's a it's a pleasant coin, but it is it is, but it but it isn't but it is anonymous, so we can see that this wallet has these coins, but we don't know who it is. They do have like AI software where they can start to kind of like try to draw lines, but there's there's dissident tech where there's privacy blocking things,

and there's upgrades and whatever. But I think the point isn't um to evade taxes and to like you can't ever know I have money. I'm still gonna file my taxes. The point is back to the gold thing. You can't take it from me, right, And so I think that's the that's the killer feature, and there's like I said, there's just not another one. The other thing that's a

killer feature is it's the only one. Well it's not the only one, but has a fixed supply cap, right, so it cannot be inflated past twenty one million, and so that's a pretty big deal. Um So, between those two, like I said, just when we talk about cryptocurrencies, there's only one that has those attributes. Um So I thought I just draw it to your attention. I would defer to you because I think you probably know a lot more about it than I do, so I'll say, okay,

but I just always just love to share that. I appreciate that. I appreciate that, but I know that if I hold it, I own it. And you know, there are some good things about the cryptocurrencies. But I again, I think we've got battle lines that are being drawn between the central banks and the corporations and even some of the governments that are municipalities that are starting to adopt this, and it'll just be an interesting battle to see. Yeah.

So all's out. Yeah, So but we're all fighting the same fight sound money stop stop doing this money printing? Um so transition a little bit. I'm just curious your take on this is something I kind of think about, right where like, um, we have these global elites and like they're running these you know, they have these plans whatever they have and uh, you know, you'll own nothing and you'll be happy in the libelar and all these things are doing. But like, don't they want to live

in a nice world too? Don't they still need people to build their yachts in their their artificial intelligence software? Like don't they still want the world to function pretty much as it is? You know, I can't really answer that because I think when you get to that level that it's really more of a game than it is anything else, and power more than the money or or

anything else. But yeah, I mean you would think that they would want that, but maybe the vision gives them more power because really, if they own everything, whoever owns it collects the rent on it and can dictate how much you're gonna pay. But who's going to invent Who's gonna invent the yacht? And who's going to invent the new sports car and build the resort for them to go to it all that well, I don't think, you know, you're still going to have those different levels in there,

but the opportunities I think are going to be very restricted. Yeah, you know, unfortunately that that's my concern. And it's not such a concern for me because I'm sixty six, I'm got a third left of my life. But I'm more concerned about my grandchildren and my children. And that's the same question that everybody asks. And because you can envision it,

you can't imagine that somebody else can envision it. But honestly, up at that level, you know, I mean they hire to sociopaths because they cannot the people that are making the people of the I m F, the B I S all of these financial decisions that have really a negative impact on everybody. They cannot care how their decisions have a global impact. And since you're not a sociopath, it would be hard for you to imagine. It's howig

you are. You know, you don't present as one anyway, Um, but that's why it's hard to imagine the game that's being played with all of our lives. But to me, it's disgusting, And you know, I also want to just just say that everybody has to do what it is that they are comfortable doing. Since I've been studying currencies since you know, I'm comfortable with this because I've I've had this experience for most of my life. I think

a truly balanced portfolio. You've got some intangibles by cryptocurrencies, but you have the tangibles to balance that out so that it really doesn't matter if you're right if you're wrong, you know. I mean, that's kind of what I ask myself. What if I'm right and what if I'm wrong? And if I can come up with choice or choices that make it so it doesn't matter if I'm right or wrong, you know, then that's where I'm gonna be. So I think balance in there is a key, not one maybe

not one, maybe not the other, you know. And I'm not a speculator either, that's not that's kind of not the nature of the beast. Well, we covered a lot

of ground. I'm gonna go ahead and wrap it up here, but I do just want to just tell everybody, um, remind everybody how we started this out, which is um, you know, there is turbulence ahead and unfortunately a lot of it is is very scary, but as we talked about in the beginning, if you're if you're skilled, if you're educated, if you're paying attention, if you're watching, could

actually be massive opportunity. So this is not a message of doom and gloom, but this is a message that there's trouble ahead, um, but if you're skilled and you're paying attention, you can navigate and potentially come out ahead better. And I'd also like to encourage people just to if that's not a world that you like and you don't want to see that happen, then you should be doing something to make sure that doesn't happen as well. So I always you like to give people that that hope

and give them that power. But is there anything that you'd like to end it with? Yes, you know, I really feel like we need to be as self sufficient and independent as possible to walk through this. And I think we got a little sip of what that looked like a year ago, when the grocery store shelves were

bare and you couldn't get toilet paper. So, you know, I would encourage everybody to look at what their personal experience was during that period of time and see where you were most uncomfortable and then start to plug those holes. But understand that inflation is here, it's ever present, and it's going to heat up even more. We'll see what happens into this transition. Food, water, energy, security, barter ability, wealth preservation. Community is key as well as shelter. These

are the things that we need. And if we can come together in community, then you know, you have a different skill set that I have, and and he has a different skill set than she has. And if we come together, then we can all be independent and help each other, because that's what we really need to do now. We have to come together and and support each other with our different skill sets. No one's coming to save you. Learn how to save yourself, organized with people that can

help you on Central Bank. Yeah, exactly, exactly good stuff. I'm gonna make sure we're gonna link to um your YouTube channel and I t M trading down below in the show notes for everybody else. Is there anyhere else that people should follow you? Or? Those are two best places. Those are the two best places and Twitter, right, and so I mean there are all those normal places as well. Yeah, if you start there, you'll get to the rest of them. All right lad, thanks so much my pleasure, Thank you, Y