Monetary Reform To Effect Your FREEDOM | Simon Dixon

thanks for having me. I've been consuming some of your content, so it seems like there's a lot of synergy. It is great to be here. Yeah, thanks, thank you so much. So um, Yeah, I've been, you know, following you for quite a while, watching your content, and like I said, yeah, we definitely do line up on a lot of stuff. But for those that don't really know who you are, just give us a little background on on what you've

been doing and what you're up to. Yeah, so I've been I'm working around the subject of monetary reform for about twenty years. I started as a economist at university, did the masters there. Then I worked in investment banking, so I worked as a stockbroker. Then I was a market maker on the London Sockets Change and then an

investment banker helping companies go public. In two thousand and six, decided to throw in the corporate towel and return to economics and started giving lots of talks and content around unsustainable banking and money reform. But no one really cared. So then this big thing happened in two thousand and eight called the Financial crisis UM, and all of a

sudden people were interested. So that's when I came across somebody that I was writing my book Bank to the Future on how to drive how to drive more sustainability in the banking system UM, And I was introduced to one of the very first bitcoin developers that had moved out of this house Soldiers house, moved to a squat

in London, uh and UH. I went there and then spoke at the very first bitcoin conference in the world UM and just been involved in investing in the industry ever since, and founded the company Bank to the Future dot com to help people invest in the industry. Yeah. So, UM, you know you talked about in two thousand six kind of leaving to go back and start talking about this unsustainable UM banking system that we have, unsustainable money system that we have. And so that's a long time. I

mean that's fourteen years now you've been talking about that. UM. I know, I got uh kind of educated into the Golden sound money by Peter Schiff, and he's been talking about the same thing for a really long time. And it almost seems like, um, it's inevitable, like we see it's coming. But when right, I've been following Peter Schiff for a long time. You've been talking about this for

fourteen years. UM, I understand the win is difficult, but it's like as a you know, the broken clock is right twice a day or whatever, like like it's unsustainable and we're moving towards this inevitable end, but like how far can they move that? Do you think about that? Yeah? I think about that a lot. And really, if you look at what we what our financial system works is UM, I call it the world's largest regulator points in scheme UM.

And really we have these different cycles where our economy has to have debt to survive because money is debt, and so without without debt, you can't have money in the existing system, and so you have these like ten year debt cycles UM that lead to some kind of systemic risk event. So we had the credit crisis in terms of mortgage loans and subpride loans. But we keep getting these different events and then recycling the debt, so we have to find a new market for debt at

every cycle. UM. And I think that the government and the central banks are shown that they're willing to kick the can down the road for as long as they can because they don't believe in markets anymore UM. So they believe that the stock markets should never crash, it should always go up, and every time it does crash,

that they need to fill that gap UM. And they do that by either encouraging consumers to take on more debt, companies to take on more debt, by a central bank buying their bonds and then then pushing up prices UM, or government's taken on that debt, or central banks taking on that debt through q E UM. But I think that we're going to hit rather than a systemic crash

of the whole system UM. I think we're going to actually hit a monetary reform similar to what we saw in when we had Breton Woods and in one when they went off the gold standard UM, and I'm forecasting that we will see a monetary renegotiation before we'll see a systemic craps of the entire system. And I think they've got a few more tricks up their sleeves to

kind of roll it up a little bit further. And the implications rather than allowing the financial system to collapse, UM, is that a new money and a new monetary system will be created that will really affect your personal liberties, privacy, privacies, and freedoms. UM, but they will be able to make it sustainable. And I think that I've got a few ideas and how they'll do that. Wow. I think that's a great topic and we are going to dig into that.

But before we do, UM, you talked about how our system is a debt based system and our money is really debt, right, and so UM, our whole system is built up debt. So if we don't continue to increase the debt, then it falls apart. UM. But it's our money as a debt based system compared to what what other money system is there? Well, there are different forms of money in the economy. So I created a video

once called six Forms of money one of them. UM. You know, the government do actually create a non debt based money is called cashing coins UM. So the notes and cash in your pocket is not created as debt UM. It's simply created and sold to a bank when they

need to. So if essentially, when you print a note across about three cents for the to be created by the royal mint or whoever it is in which country you're in, UM and if it was say a ten dollar notes, there'll be nine dollar ninety seven margin, and it's sold to a bank UM and that profit of nine dollars ninety seven reduces the amount of tacks that

one needs to pay. It's called scenerage UM. And about three percent of the money supply is created debt free by by governments UM and UH it's added to treasuries balance sheeting as a form of income. But the rest of the money of it was outsourced to the private banking sector UM and so the private banking sector they create a digital currency every time they issue alone, and it's a digital representation of the government's debt free currency. So the cash and coins is a debt free currency UM.

And anything in your online banking is all a digital currency that's created by the private banking sector and backed by debt. If you rewind into history, you had things like in the American Civil War, Abraham Lincoln actually created a green back, which was a debt free money supply, um, and it funded the American Civil War. UM. And so there are throughout history there's never been, you know, this absolute conclusion that money has to be created as debt.

And in fact, if anyone was to engineer a financial system from scratch and nobody would come up with that solution, it actually was just through decades and decades of reforms, it actually turned into the financial system we have today. How many people confuse this, They think that debts the problem. Debt in itself is not the problem. The problem is

creating money as debt, which is the problem. And once you've got a money supply, you can use that as a very you know, legitimate instrument too for people that want to put together borrowers and savers like appear to be a lending or collasterized loans like we see in the crypto market. UM. But when you give someone simultaneously the ability to create new money every time the issue alone, you end up in a Ponzi scheme where debt is required in order to have an economy. Um. So there's

these different schools of thoughts around monetary systems, you know. Um, some people believe that you need to regulate how much did require and see a bank can create through Austrian economics and a gold standard. Um. I go as a step further that, I think you shouldn't allow banks to create money rather than using gold to regulate how much

money they create. Yeah, so if we if we kind of go backwards, and as you said, this is really evolved for a long time, but if we look at maybe some big moment, you know, monumental times throughout history. Really we had, as you mentioned in forty four, like the Bretton would have freements. So the whole world was on a gold system, and so you had to have a certain amount of gold a reserve for the amount

of money that you created. And then, UM, I guess even at that point it was like it was like leverage, but at least it was somewhat backed. It wasn't debt back. I mean, is that correct? And then in v we got off the gold center and it it became a debt back. Is that how you see it or is that so? Yeah,

there was. There was different forms of gold standard, and it evolved over time, but the most recent one was back by gold um and it was used as a mechanism in order to keep central banks and the private credit creation system in check because you'd end up losing all your gold if you if you had bad monetary policy. Um.

Then that was. But the problem with the gold standards is it is inevitable, predictable, and guaranteed to be re renicked on because if you actually you know, many many economists blamed the Great Depression on the old standards because they couldn't create the amount of money that they wanted to create. Um. And there's some truth in that. But there is another option, which is actually creating money debt free rather than debt back and competing with other forms

of free money, um, you know, more free market money. Um. But yeah, And then in one with the Nixon Shock that was executed in three we essentially moved to a US dollar debt back standard and all currencies were traded against each other. So the financial system that that that that we have today isn't actually that old. And if you look back at monetary history with the exception of the British pound, which was a world reserve currency for

about three hundred years. On average, no currency has survived more than fifty years, and in fact an average of twenty seven years. So we are due in monetary renegotiation and throughout the five thousand years of monetary history since gold has been around. Um, we always get them. Yeah, yeah, they say the pound is the most successful currency in the world because it's been around the longest, But in terms of holding value, it sure hasn't done a very

good job, has it. No currency has ever survived and never holds value, So there's there's no there's none of them were a good store of value. They're they're actually designed not to hold value, right because they're built with this inflation mechanism into it. So it's it's meant to lose value over time, exactly. And if you are if you hold like the US government almost thirty trillion dollars of debt, then you want the value of the currency to go down, um, so that you don't have to

repay a larger amount of debt each month. You know that that's that's designed into the system, right, So we have this debt based system and I think since nineteen seventy one or seventy three when we got off the gold standard, we've created something like whatever, three trillion dollars out of debt, you know, out of debt or whatever. And it seems like, as you just said, about every

ten years, we have this kind of terry shock. And it's almost like this, this this balloon tries to deflate and then they have to pump it back up, and then tries to deflate and then tries to they pump back up. But each time they pump it back up, it goes bigger and bigger and bigger. Um. And you think that they still have a couple more pumps left, a couple more tricks left. Um. I actually think that this one within the next three to five years, or

even in the next year or so. You've got a time that with election cycles, because no one will do a monetary reform when they're about to be elected. So you've got to get through the next election cycle. And I'm talking about America because you know, of all currency in the world, just dollars and fifty of all transactions and dollars, so you know, dollars affects everyone, right, um, And so you've got to get past that. And then

I think we're at a very interesting time in history. UM. And in two thousand and eleven, I uploaded the video to my YouTube channel called the Great Depression of Twenties UM, and it talked about this call of KINGSI and monetaris and economics UM and then leading to the systemic risk events. And the video said, I didn't know a pandemic was coming, but I knew that something was coming because there's always

a trigger. And and then the differences is that each time, I think the appetite of what one needs to do. So what tours do we have? We don't have interest rates anymore, we have the central banks balance sheet. And now they've announced infinite you know UM, and that's working to keep investors into the stock market. Now they've announced infinite quee UM. But eventually you get some kind of

you know, systemic risk event. I'm forecasting that it will be the end of some of the government subsidies that leads to more unemployment, more bankruptcies and some of the loans that was just restructured, which are due to if the last bit of bailout for US consumers was businesses could borrow money um and if they agree to keep their their their staff and don't lay any off by the end of October, then they don't have to repay

the loan. So a lot of people are keeping their staff on not so that they don't have to repay

the loan. And then I think it will lead to a lot of another spike in unemployment, which will then exposed the weakness of the real estate markets when at the moment that essentially all mortgages and real estate is being paid by the individuals that live in months to month because of these government subsidies, and so if some of those go and then it exposes some of the weaknesses and a coupler systems the banking system and also the pension system because the bank sold all their bad

debt to your pension already during the last financial crisis. But the when when we have to rescue those systems. The options you have is a bail in, which is essentially the bank saying that they would take your deposits and use it, and they usually issue some kind of stock like they did in Cyprus, where instead of your deposit you end up with bank stock um or they

can do a bailout. But I think with the record levels of civil unrest, um and rioting right now, if the government proposed to bail out any of the banks as a result of this, I don't think they could get away with it this time. So what I'm forecasting is that they will actually allow the banks to go bust this time, but they don't want depositors to lose

their money. The way they can do that is through a central bank digital currency, which every central bank in the world has already been working on UM, and that central bank digital currency could be Let's say you had ten thousand dollars that Chase Bank, and Chase Bank was was not bailed out this time, then you could download an app and it would obtain ten thousand dollars of the central bank digital currency, and that money is debt

free money. Essentially, you're taking all the over leverage of the bank and you're replacing it with debt free money issued by the government or the central bank, just like they issued the green bags to fund the American Civil War, but this time it would be fully digital UM and

they can put a stimulus package out there. Their next round of helicopter money could be download this app we'll give you the money, um, and they deleverage the leverage in the banking system and replace it with a central bank digital currency is what I think their next movers and so essentially that central bank taking on all the balance sheet of the world um and uh and yeah, and and becoming a bank and issuing a p I T S allowing financial technology companies to build on top

of it, um and move into a more pit payer financial system. But it will be very, very expensive, as I said, in terms of the impact that currency has on your freedoms or liberties and your your privacy is going to not be a very nice currency in any way, shape or form. Yeah, I actually see something very similar in that trusting you bring that up. I want to talk about that, um, but before we do, just to

kind of preframe that for the listeners. UM. So, typically the way that it's been done is the central banks have been creating more debt, and they've been doing that, as you said, really through quantitative easing, which means that money really goes into the banks and it really just goes goes back to more financial assets. It's never really been given to the people until just recently with this pandemic where they gave a little bit I mean bucks to some people if they make under a certain amount

of money or whatever. Right, Um, But what you're talking about is something different where the instead of building out the banks and the financial system like they are doing today, you're saying they might just say, Ah, screw those guys, let's just go and bail out the people directly. Yes, So you've got to look at when each each debt cycle creates a greater level of debt from consumers, businesses, and governments um, and all of that debt needs to

be repaid plus interest. Well, it doesn't need to be repaid because it's a always rolled over UM and as long as the credit rating of the US government is okay, they can keep rolling it over for as long as people would take it. UM. But the yeah, the each inflation is not just for me um, just an increase in the money supply. It's also the factor in the

interest of all of this debt. So if you have to service a lot of your debt and your debt levels are increasing at every cycle, you will inevitably have to put your prices up to a factor in the interest on your debt UM and so inflation is not just in my perspective, a monetary phenomenon, but it's also interest rates and debt phenomenon that is factored into the equation. And the interesting thing is that if you look at if you look throughout history, that money printing during a

depression has always been non inflationary in those cases. But if you continue to imprint the money supply an increase the money supply during a a bull market, as you start to enter recovery, um, you start to get you know, a destructive effect on the currency in terms of risking leaving into an inflation re environment. Um. And if it goes terribly wrong, a hyper inflation re environment like we've seen in many countries. Um. And so you know, it's

it's not a very desirable outcome to do that. And I think that, yeah, the factoring in all this debt into the equation, that means at this stage you need to complete renegotiation in order to get out of that. Yeah. Um. And as far as the end game, which you already kind of highlighted, which we're going to dig into, I mean, I kind of see the same thing, but before we do, I'm trying to kind of understand what what triggers that, because if I we understand what triggers that, it also

has implications of what that solution is. But before we get back to that just quickly, I mean, so we're talking about UM, you know, the money creation and when will stop or whatever, and so we have UM, I know you've talked about out you know, maybe a few different types of money systems or economics schools, schools of thought kenzie in UM, Monitorizism, Austrian UM. We have a new school of thought maybe if you consider it that

that's really being pushed today. And I think depend on who wins the election, we're gonna see it really makes some inroads. And that's m m T modern monetary theory. And so we have UM the economic advisors on the Biden camp trying to push this Green New Deal or now he's calling it the Biden Deal or whatever it is. But essentially it's UM committing to spend thirty to nine trillion dollars to rebuild the system as a as a

renewable energy UM. And let's not I don't want to dig into that policy, but the fact that they can just go spend thirty to ninety trillion dollars. Where does that money come from? It's obviously this m m T of just being able to print money. Um, I mean will that work and they continue just to print that money? And if so, won't that hold off this debt collaps that you're talking about. Yes, And modern monetary theory is um.

So if you look at the system you were just talking about, the prevalent way of money creation at the moment is through quantitative easy and what that essentially, what that is is the central bank just creates money which is a digital ledger in their balance sheet, and then it used that money in order to purchase government debt. And so the government is actually borrowing the money and having to pay interest on that money for money and creation from the treasury to the Federal Reserve UM. And

that is a really really inefficient system. There's no point the government borrowing the money when you start to actually understand the mechanism, because the government already has the ability to create the money and supply um. It can do that as it chooses, but instead it outsources it to the Federal Reserve UM and has to repay in factor

in all this debt on top of that. So modern monetary theory says, well, why doesn't the government just create the money in its own in the first place and not have to factor in all this interests and debt um And the reality is that the effect is that exactly the same, but it's much more efficient because you

can remove away this pretense. You can stop having these forms of money that no one understands m and one and two and three and four, and you can just have a money supply called them, which is the government creating money, deciding how to spend that um, and then the people judging whether they create inflation or deflation based upon a transparent form of money supply. And if the government destroys the money supply, you know who to blame.

You don't get this game of the federal reserve blaming treasury, then socialists blaming capitalists, and all of the typical left

right wing arguments that we have today. Um. You know, if you if you accept that governments can actually create money rather than actually doing it indirectly and giving it to the Essentially, today we have a private form of money, which is the banks creator every time they issue alone um all the central bank creates it every time they borrow, they decide to allow spend more money in the government,

and the government borrows it from them. Why not just actually have a transparent form of money that's actually created by the government. Um. And I hear all the free markets and everyone like rolling over their graves and concerned about that, and I too would be concerned about it. But thankfully we have competing forms of money today where if you don't like that, you cannot doubt um. But yeah, modern monetary theory states that the government can just simply

spend it into the economy. Um. And in effect, rather than banks actually lending it into the economy, um, you just have governments doing what essentially people most people think governments do, which is providing the money supply to the economy. And maybe that then ties into kind of what you

see being the solution. So you talk about, you know, all these people with money in the bank and potentially losing the money in the bank, but also all the obligations pensions, um, you know the four O one case and things like that, you know, social security, etcetera. To all the obligations, and so if the system collapses, all those people that are depending on their money or their income or their retirement could potentially see it go away.

And you're saying that if that were to happen that I think the banks or the government would instead of bailing out the banks to give the people back their money, they might just give the people back their money directly through this new CBDC, the Central Bank digital currency um, and even maybe pay for all the obligations. And so maybe at that point it switches from bank based issued money to government issued money. Yeah. We we we essentially

moved from capitalism to socialism, um. And that is where I think we're headed. Um. And if you want to get more extreme, then some governments will for communism. But we can already see that the writings on the wall in that sense. Um. So what I'm interested in is accepting that we money. The end game is a percent tax. The d is communism is riots in the streets. It's

it's that's the end game, um. And I don't think there's any fighting that because of the cycles that we're in the only alternative is to actually move back to sour money cause of depression, cause a recession. Um, except that everyone's gonna real estate is massively overvalued. We have to have ginormous asset price deflation UM and UH, and

monetary inflation as well, probably UM. So you know that's the alternative of trying to combat the system by returning to a gold standard or exercising if you were designing a system from scratch, that's probably what you've come up with. But now we are where we are in regards to

that though. So you talked about, you know, at the end of whatever World War one and going into the Great Depression, A lot of people have blamed it on the gold standard because I think over and you know, England, they had printed a way too much money to fight the war, and I think Churchill said, hey, we can't go back to the gold standard because or no, it was actually I think it was Keens Warren Churchill, Hey, we can't go back to the gold stand because we'll

cause massive deflation. We've printed too much money. So what we have to do is we have to double the price of gold. And if we double the price of gold, things will be okay. And Churchill said, no, no, no, that's not going to happen, and then they revalued back to the original price of gold and everything collapsed. I mean that that seems to be the history that I've read. But uh, without digging into that, but back to kind of what you're talking about, we have to deflate the assets.

Couldn't we just increase increase the price of gold to fifty thousand or a hundred thousand. Yeah, I mean, so that's another solution. You know, if you subscribe to some of you know, the gold stand and these are all viable solutions. We can return to a gold standard, decide gold in order to make that feasible. But I don't think there's any political will, and I just didn't think

there's something that governments wanted to do that. The alternative to that is they can have complete control over our money, all of our freedoms, how we spend our money, what we do with our money, how to tax the money. Um. And you can move it to the end game, which is socialism UM and and and more communist style society, even the right wings and moving the economies over that way. You know, I don't think this is a left right argument. The systemic nature of creating money as debt drives you

to tax as the end game. UM. It's the only game you can get from the system. Um And, so far money is just inevitably moving in that direction, which is why I think the important part is to have opt out and have alternatives that people can actually make choices with. Yeah, yeah, I agree with you, right, I mean, the we just understand human nature. They're not going to wake up tomorrow and be like, oh, let's live within

our means. Although they're never gonna opt to go back to that, and so I say, they're gonna go till they blow. Right, It's gonna go till it doesn't work anymore. But I also agree with you, and it's a great point at um. They constantly want more power and constantly want more control, more surveillance, and so it helps them establish both of those. So let's talk about that. So UM, I was kind of thinking similar thing to you, right,

the bank's collapse. We have f d I C insurance, but instead of saying, hey, we'll just give the banks back the money, let's just swap it out for a central bank digital currency. I've talked about on the channel that we already know that they're already working on it, and the Feds already said it. They've hired the exact from point Base. Probably early next year, we probably see this, um, And so how do you think that transition works. I see that a lot of population maybe isn't ready for that.

I mean, how do you see that kind of rollout happening. Yeah, it's really easy. It won't look like Bitcoin. It won't need the blockchain, it doesn't need any of that stuff. It just needs to be a digital ledger that they sit in fact, they already do it. So the private banks right now, if you have a clearing bank account with the central banks, like the the large clearing in banks do they have, then there are just digital ledgers.

This is how the repo markets work. This is how all the you know, the large markets money markets for banks work. They're just s employee digital ledgers held at the central bank. So the easy way to roll it out is you just keep you keep stimulating like you are right now. You commit to unlimited QUEI, you do everything you can to try and win the next election, and then at some point during the next year or two, some kind of systemic risk events can happen, as it

always does. Um you know, this one was a pandemic. The last one was a crazy little islands like Iceland that got taken over by investment bankers that caused the exposed the global financial crisis, um, you know, completely globally. And so this could be student cards, student debts, This

could be credit card debts. Take any one of those BONSI schemes, um, you know, social security, whatever you want to pick, one of them is going to show their weakness, um, and that will expose one bank, and one bank will be exposed to that, or it will be your pension because the banks, you know that what what came out of two thousand and eight that never went away was the repackaging of their debts so that they don't have to take the risk and then they can sell it

to your pension with a triple A grades rating on it. Um. You know that still exists, and so many of the banks are in a good place because they've repackaged. Just why Warren Buffett is dumping some bank stocks and keeping other bank stocks. He's getting rid of all the bank stocks that are over leveraged and that will be exposed to these events, and keeping his Bank of America because they may not be over leverage to these particular products.

And so you know what I think will happen is you'll get one of the banks that will be exposed that will then show the house of cards. F d I CE can no way ensure all of your deposits. Fd I see is is simply you know they hold their money in treasuries, which is the government debt. They don't have cash because they can't hold cash because then they'd be exposed to whichever bank they're using to ensure the banking system UM. And so f d i C is built for one or two banks going bus, not

the entire system going systemically risk. They've only got one percent of all the deposits in the bank is actually insured by f d i C UM, so it's not designed to actually protect the system, so that at that stage you know you need to bail out f d i C. Remember before fd i C, there was f s l i C, which is the the the equivalent of the insurance for the savings and loan scheme that was you know that when BUS it couldn't ensure what it is liabilities, so we got rolled over into f

d i C. So the deposit insurance protection schemes are available and they can't tackle systemic risk events. They can only tackle one financial institution or two being exposed at this time. So the way that they could roll it out is let the bank go bust. Um. You then get to align with the people that don't want to bail out anymore. They don't want all the money, the taxpayer's money going to pay bonuses. Um. And you just simply sell them, Well, how do you get traction for

your new digital currency app? Well, if you had ten thousand dollars with this bank, download this app. You got ten thousand dollars. Um. If everyone would like in order to simulate this economy, if everyone would like ten thousand dollars for free, download this app. And then you're gonna have to opt into giving away all your freedom. So you're gonna have to opt in for compulsory vaccines, You're

gonna have to opt in for automated tax collection. UM. You're gonna have to opt in for every kind of freedom and liberty. Um. You know that you've got being taken away one by one. Why because we've got this pandemic just like we had after the last nine and eleven. Um. We have the ultimate reason for you to opt out, which is fear. Um, And it's genuine. You know that this is a this is a systemic event, and you have these inevitabilities that expose the weaknesses of the systems.

That gets everyone's walked in. And already all the financial technology companies can build on top of the API of the central bank, UM, and they can you know, the central Bank doesn't want to do customer service, but they will open up their API and other financial technology companies, UM can do that. And even banks will you know, come back again, there's a the CEOs of those banks will leave that create their own fintech startup and build on top of the new system. Yeah, and we're already

seeing that foundation built. I did a video talking about fed coin what we're calling it, and the FED ruling this out. But um, all the banks that are tied to the FED, that are able to create the debt for the FED are required now to build out their own wallets and so like they're already prepping for this and to be that customer service arm of the FED

if you will something like that. UM, do you see this just happening through dollars first or is this kind of like a global thing that happens at the same time. That's a really hard one to forecast because I think, you know, the US credit rating is still very very strong. People still consider the dollar a sort of value. Um. They still consider it a flight to safety. Um. And it's a very very strong currency in terms of its power is purchasing power around the world. You know, off

my seat money. I still hold most of my FEAT money in dollars um, and I wouldn't consider holding it in anything else other than the money that I need to spend in my domestic currency. So, UM, I think the US has still got a bit further to go. I think in terms of the monetary renegotiation, who gets the seat at the table, I think it would be based upon who has the largest goal to GDP reserves. Um. So you've got Russia, You've got Europe, which is essentially Germany. UM,

You've got you've got China, and you've got US. And I think they will be the ones that will be renegotiating the new monetary system in the next by a few years. Um. And yeah, so you think this rollout of the digital currency is an interim step into the new new monetary system. So it's not the new monetary system, it's kind of what leads up to the new monetary system. Yeah. And you've also got competing forces like the I m F and the World Bank. They all want to list

they all want to list their own global digital currencies. Um. They are you know, their their position to be the end game of rolling up in solvent central banks. Um. And so it all depends on the strength I think. So you know a bit of policy. If I were advising a smaller central bank right now, UM, I would be advising them and I have been advising them to

take an asymmetric bet on bitcoin. UM. I think in several years back, I wrote a I released a video called what was the video called how the How Bitcoin could become a central global reserve currency. By It's not meant to happen that way, but it's an extreme example of if you are a country like Lebanon, and we're starting to see this in Iran already, in order to get around sanctions, Iran is starting dedicating some of their

electricity to mining bitcoin. UM. And if you have a currency like Lebanon that no one wants, you can't use it to purchase any mining equipment, but you might have spare electricity power. Then you could use it to mind bitcoin. You could give it to your central bank in order

to hold it on some of its balance sheet. You can make an announcement to the world that you are diversifying from the dollar, golden treasuries and you're holding some bitcoin, and that would create such a fomo, a countrywide fomo UM and big impact on the price and the market.

Can that you would end up in a situation like bulgar Area was, you know, Bulgaria and several years back they confiscated two hundred thousand bitcoin from UM, an illegal crime group UM, and that those two hundred thousand bitcoin, by the time they actually got through and got those it was worth more than the entire country's national debt

of Bulgaria UM. And funnily enough, due to chrony capitalism, those bitcoin just disappeared to politicians wallets and never have found themselves on the central banks balance sheet or the government's balance sheet. UM. But I think it highlights the fact that you can have an asymmetric risk, just like individuals can now you know, have an asymmetric risk on bitcoin. I think governments, I think central banks, well, I think businesses already are starting to We started to see, you know,

businesses announcing that they're holding their reserves in bitcoin. We started to see hedge funds already saying called Tudor Jones saying that he's going to hold one to two percent of his hedge fund in bitcoin. Why is he doing that? Because if he can outperform the hedge fund industry through holding bitcoin, then all the other hedge funds have to adjust to that, and he gets a higher you know, he gets the highest performing hedge funds, as it has

in the crypto market. And I think that that that that translates to central banks. Now, the Federal Reserve will be the last to do that. You know, they'll be holding onto the end. Why because they're the incumbent. So this is a game of the disruptors disrupting the incumbent in a ginormous game of global currency wars that is determined by how much gold reserves you have, and who's going to be bravest and first to bitcoin. That's where I think we're head of over the next five years. Yeah,

that's that's interesting over the next five years too. Um. It seems like the thing with currencies and this is where like I lose a little bit on the central bank digital currencies, and I think this is what you're alluding to. But you can you can correct me, but um, it seems that all currencies, at the end of the day are only as good as we think they are. They're built on trust, and that's why I like and people say, oh, it's backed by the military, but you

look at like Venezuela. Well they had a military, but still nobody wanted to use the currency. There was lying the streets with you know, like trash, right, um. And so if the currency gets destroyed, the government can print as much as they want, to give as much as they want, but nobody may want to use that. And so I think that's kind of what you're saying, where um, well, hey we're gonna print more money, and hey we're gonna

give you ten tho of this new currency. But people don't want it, and so then they go opt for something else they think holds value or they trust they can trust better, like bitcoin. Yeah. I mean it's uh, you know, it's about different use case for different money. So fear is still a very useful form of money to me. If I'm you know, if I want to make short term expenses, I hate using bitcoin for short term expenses. Yeah, um, you know, I I bought my

house with bitcoin. Um, and it was an absolute nuisance. It took you know, nine months because the seller wanted would only accept FEA money, and so I had to prove the source of wealth to the bank, and I had to show them how I acquired those bitcoin the day I acquired them, showed them on the block chain, showed that they weren't the proceeds of crime. And that whole process took about nine months to get signed off.

And during that time, the price of bitcoin, you know, went from around about twenty thousand dollars to three thousand dollars um. And if I was trying to make a transaction in that time, it's really really challenging to do that if you're spending in fears, you know, personally, but when it comes to savings, like you know, I won't be putting. I don't keep my money in in in

in fear currencies. I only keep my money in fear currencies to the amount that I want to be spending over the next few years, um, you know, because it's useful for spending. And I've seen many people I've been you know, I spoke at the very first bitcoin conference when it was about forty people in a room through today and I know people that were there in that

room in two thousand and eleven. Um, I've seen my bitcoin crash from thirty dollars to three dollars, from one thousand, two hundred fifty dollars to two hundred fifty dollars, from twenty thousand dollars to three thousand dollars. I expected to crash from a hundred thousand dollars to thirty dollars to UM. But I saw people in that room that still are

not wealthy. UM. That we're there right from the beginning because they try to manage their financial affairs with bitcoin, and so they always had to sell it to meet living expenses. And I saw so many people that have been done that, UM. And you know it's to me, as sir, so it's you know, it's it's it's a challenging currency the day or if bitcoin ever prices things in bitcoin, then fine, you can manage your financial affairs.

But I don't. I still think that fear is still going to be you know, we're not going to start thinking in terms of my milk costs, not point not one, three to five bitcoin. Our brains cannot compute that. UM. You know, we're and global as well, because there's so many differentials around the world, so I think fear currencies

will be there. We just have to accept that the money that you hold in FEAT is money that you can't own, you can't spend unless you get permission, and you do things the way whoever the powers of the say you do it that way, and it won't maintain its value. So I'm I'm fine with my fiat currency. I know that if I put it in a bank, the bank's legal owner of that money. I'm lucky if

they give it back to me UM. I know that if I try and spend it, I'm going to have to send them loads and loads of documents and make sure that I only spend it on something that they think it's okay to spend on UM. And the same with the Central Bank digital currency UM. And I know that it's going to be worth less in the future, and I'm okay with that because it's useful for spending short term, but I'm definitely not going to keep my

savings in that. And I'm not going to be surprised when I download the Central Bank digital currency that's going to be connected to my passport and if I try to get on a plane. If I haven't had the right vaccine, They're probably not. They're probably going to switch off that wallet. And I'm also not going to be surprised if me and you are on a zoom call and this is being routed via a server in China that the Chinese Central Bank, the Federal Reserve, and the

Bank of England. I'm in the Island Man, which shares the Bank of England. Um, They're all gonna want to automate their tax collection, and then I'm going to have to go to three different central banks and try and prove to them that I paid my tax here, therefore I shouldn't pay my tax here. Um. And if I don't get that settled, I also know that my passport is going to be switched off until I settle it. I just know that that's where the world is going.

So I'll only hold an amount of money that serves that utility. The rest of it, I'm looking to hold it in money that I can own, money that I can spend, and money that I know is not going to be devalued over time. Wow, you are you paint a very grim future, um, which I wish I would like to challenge you on. But unfortunately, um, it's just where things are going. And people won't be affected by this because people are living month to month and as long as people are living months to my on debt,

they don't get affected. You know. If you if you've got they will be affected in in as as you said, their liberty, privacy, freedom right. But it kind of only those those rules only really start to kick in once you've got a balance, um, you know, and most people don't have a balance. They're negative. And so if I try and spend ten dollars, they're not gonna that's gonna

go fast. It's just going to be moved. Um if I try, and if I try and move a hundred thousand dollars, you're going to have to answer a lot of questions. Um. You know. So this this really is um And that's why they're petrified of the saving based economy. It's why they're in America. They may gold illegal because they don't want you to hold. They don't want us

to save. They want you to be in debt. The economy relies upon you being in debt, and the more and more that you can service your loans, the more the banks are happy um. They don't want you to repay your loans. They just want you to pay interest forever. Repaying the loan means that they have to go out and find another loan and deploy the cap until they just want you to cover their interest. And they want you to have just enough money so that you can

cover that loan. They want you to go to university so that you take on that student debt, and then they want you to start getting into real estate so that you start rolling over that debt um. And this is how the you know, the system is and it's a it's a it's just being rolled over and rolled over. On the plus side, this is one of the most exciting times in financial history. There's so much innovation happening.

You know, it doesn't have to be a bleak It only has to be a bleak outcome if you're not getting involved in what's happening. And that's why you know, education like what you're doing and teaching people all these new opportunities and alternatives. On the flip side, you know, it's it's like I could feel a little bit guilty because I've got deep empathy for people's personal financial situations. At the moment. I've been there, I've been in debt. I know what it's like, you know, to not be

able to get on the other side of the rat race. Um. You know, when I first started my business, I was a hundred grand in the hole, and I know the types of financial anxiety people have. Um. You know, when you you you you're just rolling over your debt. It's not a nice situation. Um. But on the flip side, you know, this is one of the most largest wealth

distributions that I think we're going to see. And you know what's good about it, what's interesting about it is you have the choice to be on the other side of that as well, because it's not just a game for those that are connected to quantitative using money through central banks. It's not just a game of chrony capitalism anymore, where the investment banks get access to the cheap money

and you pay the high interest rate. You know, this alternative financial system is being built, and there's lots of scams and problems involved in it, but anyone can be involved in it, so you know that that opportunity exists for everybody. So I know, I know we're running along, but hopefully you have a little bit more time because I'd like to I just ask you about that. So you said that, you know, although things seem bleak, at

the same time, they're full of opportunities. And so people who maybe on the other side of that, hoping to get away from that paycheck to paycheck or behind the eight box kind of thing, have opportunities. So could you tell us what that opportunity is? How would somebody who's afraid of this but wants to have that better life you're talking about, what kind of thing should they be looking at, or doing or thinking about to to make

that jump over? Sure, Well, the first thing is to actually make a decision to take control of your financial future. That's the first thing. You know, that's a psychology game. That's a you understanding what's been getting in the way of you achieving that. To date, there is systemic things. You know, the system wants you to be in that way, but you've got to break that cycle. Um, once you've made that decision, you know, take all the debt that you've got, put it on a piece of paper, understand

what it takes in order to get over that. That's what I did when I was deep in the whole You know and put bright all that down, understand what your situation is right now, and then you just have to make a decision that I understand. You know, if whatever your career is, whatever your opportunity is, whether you're a business person, whether you're working for a company, whatever you decide to do, you have to make a decision from here on in to spend less than you earn

and invest in difference. UM. And that's just the reality that that's you know, if you can get over that, then you just got to think about, well what can I invest in? UM? And that's a you know, that's an education game. UM. One of the things I'm excited about is just to answer that very same question. UM, I'm actually going to be taking a million dollars in my personal savings. Imagine that I had nothing, UM, And

it doesn't matter. This could be a hundred dollars, this could be a thousand dollars, this could be ten million million. The numbers scale because the products are available at any level, UM. And I'll be showing them how I'll be investing in during the great depression of releasing a video series of that UM of exactly what I'll do, And that would be preparing for inflation, deflation, economic growth, economic decline, um, and a plan be that the entire financial system collapses.

You've got to be prepared for everything because this is a politics and you don't know what the politicians are gonna throwout you next, Definitely, definitely, it's not the time to the old way of just and just sit there. In twenty years are gonna be okay, right, and now is the time to be what I call tactically maneuvering around this. Uh that's a great thing. Um, Well, if I can one more question. Um, So you talk about, uh,

there's kind of two opposing things. So one is that we're moving to this totalitarrorism, you know environment where the banks have these digital currencies that can they control and surveill every area of your life, and they want that, they don't want to give that up. But at the same time, you talk about there being competing currencies which give us that ability to get out of that and

and have this free life. Of course, being a free market guy, I believe that competition always creates better products, better services, better prices, and so we want that, but the powers that be don't want that. So there's like gonna be this battle between like total control China, the US whatever are gonna want and then maybe these smaller kind of competing things. Um. Do you think those the competing markets eventually win the totalitarian that the FED and

the China banks lose. How does that play out? Now? I actually believe in ying and yang, and I think we're going to have you were going to have these different systems. So UM. You know the reason I'm so excited about Bitcoin that has got this far, and it's a miracle that has got this far. It was never many succeeds. I never imagined it would get this far,

but it did. Um. And thank God that we've got it. Um. You know, and right now it's virtually impossible for any government to take down in terms of some of the key risk factors. Yes, they can make it illegal in one country, but then that would be an opportunity for another country. UM. And I think that we can see that. Um. But yeah, I do believe in the yin and yang.

I don't think it's one system wins because Bitcoin could end up being in the hands of a very few people, and it currently is not in hu many of the people's hands, and it could end up being you know, a ginormous wealth creation in the next round of bitcoin billionaire has become the next Jp Morgan's and all sorts of stuff like that, um, you know. But there is a there is a difference because it is built upon sound monetary principles, but it's not going to it may

not work with the redistribution of effect. I'm hoping that more and more people get on board at this stage most you know. The good thing about bitcoin is the majority of the world still think, you know, when we first started, no one had heard of it, but now everyone's heard of it. But the majority of the world still think it's a Ponzi scheme, a currency for drug dealers,

or a scam um. And that's what creates the asymmetric opportunity because each year, more and more people realize it's not a scam, it's not a currency just for drug dealers, um, and it's not a it's not a Ponzi scheme. And every year, for the last you know, since I've been involved, more and more people realize that, and so the market cap goes up, and the utility goes up, and more and more people try and buy it at a higher price. Ten of the last twelve is the highest performing asset class. Yeah.

And so you know, the opportunity to be involved in money that you can own, money that you can spend, and money that can't whether supply can't be changed, is something that anyone can actually take on. And people will get involved in that at different stages, depending on their cognitive dissidence or or when they decide that it's right for them. Um. And I do believe that bitcoin is actually regulates the regulator, and by that I mean that we've always had this problem of you can you know,

absolute power corrupts absolutely um. And you give regulators power, and then you have croning you know, capitalism, and and you know a corruption within the regulatory environment, and you have all sorts of check and controls. So another regulator comes along to regulate that regulator, and then that one becomes corrupt, and you have all these regulators that sit

on top of regulators. Um. But when you have a monetary system that allows you to own it, allows you to spend it, and allows you to have a fixed supply, my hope is that we get much much better fear currencies, because I really don't want the banking system collapse. That hurts my mom, that hurts my grandma, that hurts my sister, that hurts my brother, and that hurts everyone that I know that's not prepared for this. And almost everyone I

know is not prepared for this. You know, we're a tiny, tiny community of monitory reformers or bitcoiners or all these people looking at this start. I know that I'm in a position where I'm going to be okay no matter what happens. That's how I've set myself up. But most people won't. So I don't want the banking system to collapse in order for my bitcoin to do well. UM, I would like, you know, I would like the fear

to get a lot better. Um. And so bitcoin performing this task of regulating the regulator, whereby if people have a choice to exit and that can't be stopped, therefore they have to just make a better system. And that's where I hope. That's what I think the good outcome of all of this is because fear currency is still very useful. We use it for a reason because it's useful, and we don't want to go back to a barter system.

You know, it's a convenient, it's a human if you took money out of the world, humans would reinvent it every time because it's more convenient than not having money and having to trade. Um. So I do think that there is a good outcome that comes that comes from all of this, But you know there's a there's a lot. I just wish it we didn't live in such a speculative environment where you, as a person, you have to learn how to speculate, because if you're not learning how

to speculate, someone else is speculating for you. Just Leaving your money in a bank is a bet on the credit risk of that bank and the credit rating of the f d i C and their ability to do it. Putting your money in real estate is a speculation the banks will continue to increase the mortgage supply that pushings our real estate, that continues to push our prices. Investing in a four oh one K is a bet that the financial system has your best interest at heart. Um.

And that's you know, all of these different things. So we only have one choice. I've you learn how to speculate in the speculative economy and prepare for different outcomes, or you outsource your speculations to someone else. And I'm sure. I mean I can ensure you that they don't necessarily have your best interests at heart. Yeah. Wow, that's uh, that's such a great point. And and uh, I think we'll just end it with that. Um. I think it

all goes back to the money system. It's not a good store of value, but you need to be able to park your wealth, as Simon just said. So, um man, that was that was great and I know we went over so I appreciate you taking that extra time for us. Um. Such a good conversation. Um, Simon, I know you talk a lot about on your own YouTube channel. UM. So you do have a YouTube channel. I'm going to make sure to link to that in the show notes. Where else should somebody go to keep up with you and

follow what you're doing? Yeah, so I mainly live in three different places. Um, Simon Dixon is my YouTube channel, which is where I release content as the economy unfolds, and I'll be releasing that video series on how I'll be investing million dollars in my savings in the Great Depression in twenty twenty. Um on Twitter at Simon Dixon Twitter, um,

and UM. I also my company Banks to the Future dot Com is for those that want to invest in the equity and stocks of financial technology companies building the future of finance. Yeah. Great, well, such a great conversation, simon Um. It is definitely interesting times that we're in and and exciting if you're in the right position and observing like kind of we are. So anyway, thanks so much for you guys coming and talking to us today. Yeah, pleasure,

and really appreciate what you're doing. Educating people in plain, simple language. I think that's so important for people to learn all this stuff. All right, we'll see you later. Bye bye.