The Mark Moss Show Mar 18, 2022

of the market. And that's what we're about to do right now. I'm sitting down joining the studio with Sam Callahan. You can find him on Twitter at Sam Cala c A L l a h. And he's a bitcoin analyst with Swan Bitcoin. UM. Anyway, Sam, thanks for joining me today. Yeah, Mark, thanks for having me on Glad to speak. Yeah. We uh we were just recently hanging out in uh in Vegas at the tone Vey's Unconfiscatable Conference. That was a

pretty good time, great time. Yeah, super fun. I uh, I think I'm just barely getting my voice back from that man after a couple of day. It seems like it's always yeah, man, it's like the first thing that goes every time. I was like it was it was a fun event. It was. It was so so busy. I remember you you came up and You're like, oh, we're getting together next Thursday, right, And I was like,

what the heck is next Thursday? Uh. But but but it didn't mean I wasn't looking forward to this because I was, UM, something that that's a conversation I've really been looking forward to having, and so I'm excited to dig into it with you today. UM. I've been talking a lot about UM one. Uh. People are thinking like, oh, this, this Russia, this Russia Ukraine war couldn't lead in into

a World War three? Um. And I think they're thinking, you know what a war break up between US and China, or Russia, Russia and the US with nuclear war happened, things like that, And a lot of times I say, well, I think we're already in a World War three. Um. And that World War three is is is the government's against the people. But even more than just the governments, it's really what I've been calling a coup of the central bankers, where the central bankers are really taking over

the world. Typically a revolution would be the people revolting against the government, but this is almost like a revolution from the top down. And Um, I've been looking at this chart which I've been kind of building my worldview off of, and I think you we talked about this, and it's this global public private partnership, and it's like the ORG chart, and it has the B I S at the very top of that, which is, of course,

is the Bank for International Settlements. Then below that is the central banks and those are like the policymakers, and below that is then like World Economic Forum policymakers, and then below that distributors, the I, M, f U, N W h O, and then below that, so here we are like four levels. Down is the actual governments, the enforcers, um. But at the top is this B I S. And most people have no idea, they don't even heard of

the B I S. Um. I know you've been doing a lot of research into that, So what what the heck is this whole B I S thing? Um. I think you're spot on, because what we have here is these large non governmental organizations that kind of work in a stratosphere above governments. And a lot of people think that the financial industry or infrastructure kind of ends with

the Treasury and the Federal Reserve. But we live in a very globalized economy, and there's these large, unelected non governmental organizations like the Bank of International Settlements that has a lot of influence on the policy that governments make. And so the Bank of International Settlements is the best way to think about it is it's like a bank for central banks. So think about the services that JP Morgan does or well as far Ago does for a

regular everyday person and just bring that up. Where the central banks are the clients, and they go to the BIZ and they provide services such as short term liquidity and credit. They do foreign currency exchanges and large transactions of like gold swaps, and they charge fees and commissions to the central banks to use their services. So they're kind of like an international clearing house, uh for the central banks. And then they do a couple other things.

They are kind of like a very elite event planner where they hold seminars and committees and conferences for central bankers in their headquarters in Switzerland. And they also, um they kind of have the best vantage point because they're above everything else where they collect they have the largest database of banking information in the world, and so they have a mainframe computer and they sweep all the data and they have a really good advantage point to to

understand the flows of international finance. And so central banks and governments picked their brain as to what's going on in the plumbing of the financial system. So that's kind of the three things they do their bank for central banks, their event planner, and their you know, uh database Center for Financial Information m M. They got their hands and

their tentacles and everything exactly exactly. Now, when I think about the Central Bank of the United States and the Federal Reserve, the Federal Reserve doesn't actually create money, right, they create reserves that go to the commercial banks, and the commercial banks, UM lend that money into existence when I'm buy a house, a car about something like that. Um. So the Federal Reserve gives reserves to the commercial banks. Um. What does the b I S do? Do they give

reserves to this to the Federal Reserve. Well, they have a special drawing right, which is a kind of confusing. It's like a fiat money on top of fiat money that they can create and provide loans to distress nations and UM governments if they need to. And that's the SDR.

That's the SDR. Yeah, and then the SDR is used as a unit of account for the Bank of International Settlements, and so a lot of times when these central banks are using uh, the bus accounts um there through the SDR and so it's it's kind of like this money on top of money, and it's it's pretty confusing. But they created it way back in the day. When we're talking about the trip and dilemma, people are familiar with

that UM. But it was basically a way to take pressure and fill us in on go ahead and give

us the high level of you on the trip and dilemma. Yeah, the trip and dilemma really stems from the old Breton Wood system when the US was the reserve currency of the world, and it was kind of when when they when they when they were yeah, sorry, different when it was a different system, right when when it was pegged to goal at five dollars now it's and then all the currencies were pegged to the dollar um because of that,

because it was the reserve currency. If the US read ran large deficits, it was kind of a problem because if they ran large deficits, then the other nations would question if they had enough gold to back those dollars. Right, But if they reduced the deficits, then there was also a problem there because it would reduce the liquidity for the other nations. So basically it was always this problem

of dilemma where they could never reduce their deficits. And so the CR was created to kind of try to take pressure off the dollar the reserve system by having a neutral bank provide reserves in this different currency than the dollar um. And now it's stuck around. So that was way back in the seventies and it's still still around today. Yeah. Now the I m F, I thought that I m F issues SDRs. Um, they get the SDRs from the b I S Like they somehow work

together in that regard. Yeah, they exactly, They basically worked together. They both they both have the unit of account as

THEIRS as the SDR. Okay, now, um, how much how much do we know about the origins of the B I S. We know a lot actually, Um, A quick overview on that, Yeah, yeah, quick overview is it really stems from the the Treaty of Versailles that ended World War One back and it was very unfair and Germany was basically they made to pay these really large war reparations that was basically impossible for them to pay because

their productive capacity was destroyed. All the factories were destroyed, and um all their men died, their labor force were dead too, and so they couldn't grow economically after the war and pay these huge war reparations at the same time. So what did they do. They printed a ton of money, and then it was the hyper inflation of Weimar the

Weimar Republic in the early nineteen twenties. Um, after they kind of stabilized in the mid nineteen twenties, a bunch of American investors started investing in Germany because it was the Roaring twenties over there, and they were just throwing money and everything, and they thought, well, Germany is gonna

start rebuilding. This is a great investment opportunity. And then millions and millions of dollars flowed into Germany until nine when the stock market crashed and then all the money dried up, and then Germany was suddenly in a really bad position again where they were worried that they were going to have a second hyper inflationary event in ten years.

And so from that it can engine came together and they said, Okay, we're gonna restructure these war reparations to make it more affordable for Germany to try to pay them. And we're going to create this neutral bank, this bank that's going to facilitate the war reparations and help move

large funds across borders. UM kind of this large fund international clearing house that was created under international treaty in nineteen thirty and that was when the Bank of International Settlements was created, and it's still at the center of the financial system all these years later. There's so much there I want to dig into. I can't wait to ask some questions about that. I'll be right back with more about the b I S don't go away, all right,

Welcome back here listening to the Markma Show. We're talking about the decentralized revolution that is changing the world as we know it now. One of the things that we need to know to understand the change of the world is to understand how the world is organized in the first place. I'm in the studio right now with Sam Callahan.

You can find them on Twitter at Sam calls e A L hell eight H. He's a bitcoin analyst with Juan Bitcoin, which is a good place if you want to buy some bitcoin a place that I've used as well. And Sam was explained to us about the b I S the Bank of International Settlements, which is the central bank above central banks, and he was talking about the way they got their start. Now, Sam, you were saying that, UM,

nineteen Treaty of Versailles, Germany had to pay these war reparations. Um, they printed all this money, they had sky high inflation, um, and then UM, the Bank of the National Settlements was like founded to kind of help deal with that situation. Um. Was it just like the richest people in Europe at the time came together to start the bank. Yeah. So

it was, um, the same people. If you're familiar with, UM, the story of central banks, there's actually so there's the guy from the Bank of England and yeah, the Bank of England and the Reich, the Reich Bank. Um, it was the same characters who started kind of all of the central banking. Um, that started the BIZ. And And the reason why is they always wanted a bank bank that worked above governments because they felt that politicians were hinderance to them and they were pesky and they just

wanted to deal with their international finance. And now they created a bank under the under the disguise of just helping these war reparations. They created a bank UM that had complete legal privileges and nobody could touch them. And now they had their international bank. So that's kind of why it was created. Was created by central bankers. Now, UM.

I think it was Murray Rothbart wrote The Mystery of Central Banks, and he talked about how the first central bank was the Bank of England and the late sixt hundreds, and they basically went, I think England was fighting France and they wanted money from these rich people. And rich people said, hey, if you let us start our own bank, we'll give you as much money as you want. But

we have to start our own bank. And we had we're going to create our own currency, and you say that our currency is legal, and we'll give you as much as we want. And so they were basically creating money out of thin air, UM, and I guess the central banks have been doing it ever since. And so if we if we take that story forward, you're saying it's some of these same people that came forward, UM, and it's they operate above governments to the point of this like org chart that we kind of both kind

of agreed on. UM, and you're saying that they can still kind of create thrown money out of thin air by issuing these SDRs, which are based off of a basket of other currencies. Yeah, that's right. So yes, Uh, special drawing right as they're known. Um, they used to be when they started, they were kind of pegged to one dollar based on the gold but once Nixon took us off the gold standard. Um, they basically change every five years in terms of what currencies are in there,

and it's just a basket of currencies now. UM. On an earlier segment, I played a clip actually of the head of the b i S, which is Augustin Carston's and he was talking about you've probably seen it before. Um. He was talking about how cash we don't know who's exchanging a hundred dollar bill, but with CBDCs, we can know exactly who's doing it and we can have complete control over it. UM. Tell us about some of their big plans they have for us maybe with the CBDCs

and control in the financial system more. Yeah. So, I mean this is why it's just important to understand what the business function is today, and it's really kind of creating the policy ideas in this they have an innovation hub and they have these events where central bankers can get together and discuss, you know, what to do in the future about the financial system. And over the last sense about eighteen they've written um a dozen working papers

on central bank digital currencies. That this is the thing they're focused on, and they're really excited about it. And essentially, if if you have a central bank digital currency, that would give them the power UM to basically directly target

their monetary policy based on information of an individual. UM. It would allow them to do things like negative interest rates UM, and it would give them complete control over who has access to the financial system and as well as a complete surveillance of all the flows of international finance. And so they're they're they're loving this. They're just looking their chops and and just in their loving the power

that could they could get from this. But you know, to give them a little bit of credit, you know, I think they have some good intentions. It's like, you know,

the road to hell is paid with good intentions. And they're thinking about all the benefits that CBDCs could bring, like, oh, we could be more efficient, UM, we could finally give some cheap cross border payments to people, because even though we've had all this technological progress over the last decade or two, you know, sending money is still really expensive for people, and they've been trying to figure out how to do this, and so they're looking at the CBDC

and just seeing all these positives, but they're not focused on all these like infringements of privacy and uh, the ability for them to basically weaponize this against people. They're not really considering the downfalls of a CBDC, or maybe they are, or maybe they are. They just think that the benefits that way the ca us Yeah, there's a there's a quote from Henry Kissinger from seventy four. He said, who controls the food supply controls the people. Um, who

controls the energy can control whole continent. So of course we see this E S G kind of narrative going over the whole world. So we control the energy through s G, and then the last piece, who controls money, can control the whole world. So I guess that's kind of kind of what he was talking about when they said that. Um, but um, back to this, Uh, let's talk about that cross border piece. So um, that's one of the things they want to create, this more fair,

equitable system for everybody. Um. And I was actually talking to an analyst, Jason burak Um. He's not a big crypto guy, and he said that, he said that it's gonna you know, the government doesn't doesn't have a way to facilitate chillions of dollars of cross border payments. I said, any cryptocurrency can do that today. I mean bitcoin obviously, but any crypto really could. It's the policies that are in place that present the problems trying to go inside

of different countries and banks. Um. So do you think I don't know if you've seen anything specifically about cross border payments from the bi s, Like, would they just usurp all the nation's laws and that's how they make it easy? Yeah, I mean that's actually what they said. They actually talked about having a what they call them multi C B d C, which would be it would be one giant digital I D system that everyone would

go into, so definitely an infringement of privacy there. Um. And then everyone would be on this digital I D system in the single C B d C for the entire world. And so they're thinking, oh, this is gonna be so efficient, right, it's on one system. But then they say something very vague like there will be a single rule book quote unquote, but they don't say how that rule book would be made, who will write it,

who will enforce it. Um. It would probably be a group of unelected central bankers doing this stuff behind closed door in there in Switzerland at their headquarters, um, because that's usually how these things go. But yeah, they're they there's a whole working paper on it. It's called a multi cbd C, a multi CBDC which means multiple countries

all using the same one. Yeah. So the idea is they thought, because there's about essential banks are already uh you know, testing and experimenting with their own cbdc s. But what's the point if they're all siloed by themselves with their own systems. So they're I think when they say multi CBDC, it's almost like they're planning on hooking up every CB CBDC of a country into this one giant umbrella system and they think that's a good idea. Yeah,

that's interesting. Um. I've often thought about the way this kind of works its way out, going from the commercial banks to the nation's central banks to the I M F, B I S, etcetera. I want to talk about that, and then I want to talk about more about this global digital I D system because that's another big thing as well. Um. You listen to the Markma Show. I'm in the studio with Sam Callahan. We're talking about UM Bitcoin.

We're talking about the decentralized revolution. We're talking to about the B I S, which you may know nothing about. It's the central bank about central banks, and you may not know about them, but they know about you or they want to know more about you. So we're gonna talk more about that, the types of control they may want to have and what they can do with it. UM, so much more to get into. Don't go away. I

want to be right back. Everyone. Welcome back. You're listening to the Mark Ma Show and we're talking about the intersection of politics, finance, and technology. We're talking about the decentralized revolution, which of course is bitcoin changing the world as we speak. I'm in the studio with Sam Callahan. He's a bitcoin analyst with Swan Bitcoin and you can find him on Twitter at Sam Callous c A L L A. H Um, Sam, do they not have the rest of the letters for your last name or like

what happened there? Yeah, well dude, so apparently there's this like British pop star named Sam Callaghan's he was not like the American idol of the UK. So that's what I have to fight with. Got it? Got it? So instead of putting a space or something in there, you just dropped a couple of letters off the last They're all taken, dang it. Yeah. Um, on Twitter, somebody has Mark Moss but they've never like used it. They don't even post or anything, and I've like tried to reach

out to them. Didn't work. So I just had to put a number one in front of it, which, by the way, if you're not following me on Twitter, it's number one Mark Moss you should. Um. But anyway, so back to we were talking about this this b I s um this bs uh uh. But they've also been advocating for this global digital identity system. Um, what what have they said about that? So they're in like the design phase right now. Right they're still figuring this out.

It's still many years out before anything happens here. Basically they're trying to figure out, you know, how is this gonna work while trying to maintain privacy, and I think that's more just like word speak, because basically there's two ways they can do it. They can have an account based CBDC, where somebody has an account tied to their digital identity um so a digital I D system and

they have a direct account with the Central Bank. The other way they could do it is they could keep users anonymous and have a token based CBDC, which would kind of mimic the private stable coins that we see today.

So there's some kind of privacy maintained there. And they go back and forth about the pros and cons, and it always comes back to they say that they won't be able to stop elicit activity and money laundering, so of course we can't have privacy, and so they say, okay, well we have to do these digital ID system with the account based retail CBDC, which grinds my gears because if you know anything about a m l K y C, they can't stop elicit activity or money laundering at all.

They failed at that for decades, and now they justify surveillance and overreach in the name of stopping a listit activity that they haven't been able to do with their policies for decades, and so it really bugs me when I see that in these papers all the time. It's why they justify the overreach that they do. Sure. Um,

And I was talking about in an earlier segment. I was talking about the k y C A m L and how there's about ninety trillion of of global GDP, and of that global GDP ninety trillion, they estimate about three per cent of that is criminal. And again criminals probably a who who you know, who decides what's criminal. So maybe that's um, you know, some of it's some really bad stuff like you know, child trafficking, but some of it's probably not. So whatever, call it three percent.

So um, ninety trillion three criminal they said of that k y C captures less than zero point one percent. Yeah, that's a It might be from a study from a guy named Dr Ron Paul. He's another cool doctor Ron Paul. Yeah. I caught I caught him, and I started diving down

his rabbit hole. Yeah yeah, because I was diving down the rabbit ale too, And his name just kept popping up on all the research and he did his PhD. And basically the ineffectiveness of those policies, and so he did, he did all the hard work, so all those like numbers come from his work. Yeah, man, it's it's UM. He has a he has a saying it's uh, it's

zero effectiveness, infinite cost. That's what those policies are. Now where there's they don't do what they're supposed to do, and all they do is create extra costs on banks who are fine for not complying with their ineffective policies, and then those those banks have to pass on those costs to consumers. And so he's made his life's work to try to fight raise awareness about that stuff. And

I think everyone should follow that guy. Yeah. And then I saw it was like UM business compliances estimated to trillion dollars a year percent of global economy. So UM to percent of global economy. Some institutions spend up to five hundred million annually. The top ten percent of businesses spend at least a hundred million. That's so like UM, I think of things like t s A, what a

freaking nightmare going through the airport. UM, in California, we have like border patrols were like checkpoints we have to go through and just randomly on a day, all of a sudden, you have to wait in line for an hour,

so they can just like wave traffic through. So like they're going to inconvenience, you know whatever, hundreds of thousands of people to maybe potentially catch like one ill legal alien where they can go get like hundreds you know, just at home depot um but or t s A. But in this example here, it's like, so they're going to inc not not just inconvenience us um the nine percent, not just inconvenience, but put us in harm because now we've had to give up all our identity and these

honey pots that could hacked all the time. So nine and nine point nine percent of people are inconvenience and put at risk to potentially maybe catch the zero point one percent of people. I mean, it's insanity. It's insane. And then and so and then these uh you know,

the Bank of International Settlements. That's how they justify you know, having a CBD system that doesn't have you know, anonymity in it is they say like, well, we need to do this stuff when they can't do it right now without the you know, control of a CBDC and the surveillance of the CBDC, So you'd basically be infringing on the rights and the privacy of all these law bodying citizens to catch a very very tiny sliver of you know, terrorists or criminals. So, um, it's it's really it's it's

kind of shocking, to be honest with you. But at the same time, I wouldn't really expect less from these large organizations like this. Yeah, so if we have like this, uh, if we have like this, almost the banking is kind of like this decentralized stack. So you have you know, you have at the bottom you have like a local bank farmers and merchant bank, credit union, and then you have the commercial banks, and then you have the central

banks um. And then you know, since the central banks give reserves to the commercial banks, and then the commercial banks are the ones extending credit. So my local bank, for example, I'm like, hey, I'm i'm I want to start an avocado stand and he's like, well, people in California love avocado is great, Um, but they know what I want here. And so there's like this decentralized kind

of decision making um versus the FED. Right. So but then you know, we have the commercial banks and we have the FED, but then above that then the I M F and B I S And it's almost like they just want to compress that whole stack down, so we could have an account directly with the B I S, which you know, on one hand, I guess it makes the cross border payments better, um, But then the trade off is then the amount of privacy we give up. But then, uh, I mean, are each nationally going to

lay down their sovereignty for that? Yeah, And you're exactly right. And also the commercial banks. It basically takes all the commercial banks out of the picture, and so a lot of the working papers in the Bank of International Settlements, their concerns aren't about, you know, protecting the rights of individuals.

I don't think they really care that much about that, But they do care about the restructuring of the entire banking industry because this would basically bypass commercial banks because right now you have basically, you know, users, it's kind of users go directly to commercial banks and do lending, like you said, and they handle all the communications with the users and the central bankers in the background, and they don't want to get into all that if they

have a direct CBDC, Suddenly they'll have to have an entire lending you know, branch in the central bank and deal with all the headaches of a m l K by C like we said, and day to day customer service. And so they don't want to have this system where it just like takes the commercial banks out. So they're trying to design something like a hybrid where they don't have to deal with the headaches of all the things

commercial banks have to deal with. And so that's kind of actually the main hold up right now from the Bank of International Settlements you know viewpoint, the main hold up is UH is getting more surveillance and more policies

in not they want that. No, they just don't want to change the entire structure of the banking system by having a direct account and bypassing the commercial banks and basically putting them out of business, like there would be no need for them anymore, right and and uh they're like best friends, so they don't mess with their commercial bank friends, right right, right, And just it's just it's

a dangerous world. I was at a conference speaking recently with Professor Richard Werner, who's ex Central Banks UM, and he had some very interesting things to say. I want to tell you what he said at his talk. I actually agreed with him, and then I didn't agree with him. I'm gonna fill you in with that. I'm wanna get back. We'll talk about what he said. We'll talk about central bank digital currency some more. You're listening to the markmas Show.

I'm in the studio with Sam Callahan uh talking about the coup of the central bankers. The b I s something that you maybe haven't heard of or thought about, but you should because ignoring it isn't gonna make it go away. Um. We're talking about bitcoin, the decentralized revolution. Um, like I said, the banking sector and how they may try to compress the stack on you and what that means. I'll be back with a lot more. Don't go away, all right, welcome back. You're listening to the Mark Moa Show.

We're talking about the decentralized Revolution. We're talking about the converging trends of politics, finance, and technology and bitcoin and how it's changing the world. I'm in the studio with Sam Callahan Uh. He's a bitcoin analyst with Swan Bitcoin, and we're talking about this this banking stack. So the stacks, starting from my local bank to my commercial bank, to my central bank, to the I m F and the B I S, which most people have never heard of,

the Bank of International Settlements but now you are. Um. So Sam, right before we went on the break, I was talking about how I recently spoke at a conference with the Professor Richard Werner, and he's an expert with

central banks and advisor and so forth. And his talk that he gave at the conference was was amazing, and uh, the whole thing was centered on how we need to decentralize the banks, how this growing trend to centralization is a is a massive problem, and and he had all these facts and all these charts, and I mean so much research showing how much better things were when the banks were decentralized and all the risks of what happens as the banks continue to get more and more centralized.

And I was like, Wow, that's great, that's that's that's exactly what we think as people think about bitcoin. Um. But then I was on a panel with him and then the question was like, um, so you know you believe in this, like you know this need for banks to decentralize, but how exactly would we do that? Like, how does that just happen? And he's like, well, we just need more people to go open banks, that was his answer. And I'm like, well, in order to open up a bank, I have to get like a banking

license from the FED. They don't just give those out to anybody. And um, that's the reason why we don't have more banks. I mean, what do you, um, what do you think about that kind of response? I mean, I think that's spot on. If if you know anything about like how many banking license gets out after two eight I think it's like thirteen or something, and it used to be like dozens a year, but we've seen concentration of banks and that's kind of how they hold

off their monopoly of power. They don't let any banks be created. So, you know, it's one of those things like that classic Milton Freedman quote where it's like a sly roundabout way um around the system instead of trying to fix a broken system. Jeff Booth talks about that a lot, like, I can't fix a system that's fundamentally broken. We need to create a parallel system. And I agree with that kind of framework. You know, I'm a big

fan of Richard Warner. I think he's been talking about central banks way before everybody else was, and he's he's an expert. UM. I recommend reading his book Princes of the End, and there's a really good YouTube video um as well, like a documentary. UM. But here I'd had to disagree with him, well because he uh, the the disagreem apart um again we I think we all agree with him on the problem. The centralization of breaking the thing that we disagree on is the solution to that problem.

And um, to your point, I mean, it's the system is so clogged up, it's so jammed up. It was f a Hiak that said that quote. UM, oh yeah, there you go. Sorry. UM, never be a sound money aga until we take the thing from the hands of the government. But it can't be done by force, but rather a sly roundabout way. UM. But that's exactly right and kind of to your point, like Jeff both talking

about these these parallel structures. UM. I've studied a lot um really how the Soviet Union, the USSR fell, and some of the writings of Vaclov Hovel and and mainly him. He was put in prison for three years for speaking out against the government, and then he became on became the president of Czechoslovakia, and he said that the way that the U. S. S R. Fell was through these parallel systems, and so um people were so regulated by the system that they were forced to go live outside

of it. Um So, like all these people being sanctioned and getting kicked out of the financial system, they're going to go find another system. And eventually, because so many people had left the system that the sanctions didn't really matter anymore. And then by the time the Soviet Union fell, it didn't really impact that many people because not that

many people depended on the system anymore. And uh that I guess that's what we're kind of seeing, right, there's a way we can start getting people out of the financial system to build that parallel system and then maybe cushion that blow. Yeah, well that sounds very familiar to what we're seeing today, isn't it, Like with the Canadian truckers and the increase weaponization of the financial system against

you know, government's own citizens. And I think that's it's like the best marketing for bitcoin, right when you have this other option that nobody can control. It's parallel working system. If if they keep weaponizing it against the citizens, they will find the other option that's not going to be weaponized against them, and that one's Bitcoin, um being open source, permission list, all those good things that we both know. Um.

I think that's what we're seeing. And I don't know how fast that's going to take or how it's all going to play out, but I think at this point, if they, if the government's continue to do what they're doing with the sanctions and the censorship and the seizures, then it's only a matter of time before more and

more people choose a system that doesn't get weaponized against them. Yeah. Yeah, I was talking about that earlier where Um, I've talked about this quite a bit on YouTube, and I had some people say, oh, Mark, you're a shill for Russia. You must be a Russian asset, and it's like, you know, these are these are complex subjects and I'm certainly not for war. I'm certainly not for killing anybody, um, but

at some point you're gonna find yourself on the opposite side. Um. You know, back to the truckers, I mean when people donated money, you know, when go when the go funding got season and then people donate a bitcoin that was legal at the time, and then they wouldn't change the laws later, right, and then they found themselves on the wrong side of that, and so it can happen very quickly. Um. And I think kind of like, um, the Newton's third lave of physics, like every force has an equal in

opposite reaction. So like, the more they're pushing people out, the more people will go build another system. The more people push back and building a system, the more they're gonna squeeze and push more people out. And it's like this like uh kind of you know, spiral effect if you will. Yeah, I think that's right. I think that's

how I view it as well. Um, Like I said, if they're just gonna keep weaponizing the system against them, then more and more people are going to find one that embraces them and doesn't discriminate, and then that's that's Bitcoin.

Now it seems like um if it seems like I mean, the BIS is talking about this global digital identity system, um, and it seems like, um, this China style social credit score system is coming for the rest of the world, and it and it really needs this global digital identity system and the c B d C to really put

it all together. Um, it seems like in my opinion, I've been talking about it's like a race, like can they get that system um set up and installed before enough people wake up and just leave the system and go do something on their own. Do you see that race? And if so, what's your take on that or your prediction on that. No, I do see a race, and I and I think the races with like bitcoin adoption.

I think, Um, I think if bitcoin becomes more and more popular, you know what I'm worried about is that the BIZ or essential banks will rush their own product out because bitcoin is becoming so popular and they're behind the curve with this stuff, and they're the government. They're not exactly great at technology and so to say the least.

So I think this is far away. Like I said, I think there was a recent report that showed they're hoping for a fed coin by like, but now even I think that report was like two months ago, and now we have an executive order saying like, no, we need this faster. So we're already seeing, Yeah, we're seeing this race increase very fast. Like it it's all accelerating.

And I think what we're like personally. One of the predictions that I have is is they're actually going to outsource it to the private sector and they're gonna have one of these highly regulated stable coin issuers you know, come in house and help build um, you know, fed coin or whatever you want to call it. And then it's interesting because it's it's like, this stuff doesn't work unless everybody's on a digital ID system, and so it's kind of like the prerequisite. Well, I mean it doesn't.

I mean, I mean, the the stable coins work without that right if they if they don't want to give us the privacy, then it doesn't work, I guess. And I don't think they want to give us the pair. I don't think they want to give us the privacy. And so that's kind of how I see it playing out. I think it's all going to accelerate, um and then they're probably gonna turn to to a private stable coin issue or to kind of help weed that that project. Yeah, that makes sense. I mean they pop up all the time.

As a matter of fact, they could just take one over by one or whatever. UM. I was talking earlier. There's an article I was reading about the history of the i r S failure to update their own database. For forty years, they've been unable to update their own databases and it's caused you know, hundreds of thousands of mistakes every single year. UM. And then I was talking

about the Obamacare when they launched that website. UM, it was a massive problem people just trying to shop for insurance and they spent over two billion dollars and couldn't get that launched. So UM, they definitely don't have a good history of technology, so we have that on our side. UM. You're listening to the Markma Show. We're talking about bitcoin and the decentralized Revolution. I've been in the studio with Sam Callaghan. He's a bitcoin analyst with Swan Bitcoin a

good place to buy some bitcoin if you're looking for some. Um, we're talking about the b I s UM. It's interesting anyway, That's what I got forre you today. Thanks for listening.