The Mark Moss Show Mar 23, 2022

can help to navigate them a little bit better. I also try to bring you the latest breaking news so you're up to date on what's going on. And that's exactly what we're talking about today, because man, it's changing fast. If you're not up to date on what's going on, then you you're just not You're just not keeping up with what's going on the world today, and that that

could be very dangerous for you, both socially, politically and financially. UM. I like to say on iron Rand quote, if you don't know who iron Rand is, then you're missing out on that as well. You should really read more books. So you wrote the book Atlas Rugged, which is a great book. Um, it's a long book. If you haven't read it, you should put it on your list of books to read. And if you're not gonna put on your list of books to read, then at least watch them.

At least watch the movie. They made a movie about it. Um, true, True. Iron Man fans of Atlas Shrugg don't like the movie. I think it's pretty good. Um And you can watch it about two hours and it's actually pretty good with some pretty good actors, and it's it's entertaining. So check that out Atlas Shrugged. But anyway, back to her quote, she says that you can choose to ignore reality, but

you can't ignore the consequences of reality. And so I get it if you're not always paying attention to this stuff, but it's not going to change the fact that it's going to impact your life. So you can either be surprised and wonder what happened, or you can make things happen. I guess that's a better way to say it. On a light note, I saw today that the Senate unanimously passed a bill to make daylight savings time permanent. Wow.

That's pretty interesting. It's been nice having the longer hours, the longer daylight here at the at the end of the day. Hopefully you've been enjoying that looks like it could be permanent. Still has to get through the house, I suppose, But um, shoot, that could be. That could be a real thing. Not my typical topic. I just happened to see that pop up and I thought it was interesting. But you know, UM, a lot of things are happening, you know, as this world is going through

this crazy pace. UM. I've been talking about how UM and the war with Russia Ukraine and the sanctions at the US and other nations are imposing on and how it's really radically changing the system as we know it. And it seems like, man, it just seems like they just can't stop doing things that are leading to their

own demiyes, like literally destroying them. Oh man, if you guys remember back UM there was the famous a game stop where UM all these traders from UM Reddit Wall Street bets went on and they put a bunch of shorts where they did a short squeeze on a game stop where a hedge fund UM I believe with Melvin Capital was super super short. They had placed a lot of short bets basically betting that the price of game Stop would go down, and they're trying to drive the

price of that stock down. And a bunch of nostalgic I don't know what we'll call them, not really investors, but traders, I guess we'll call them that to be nice, or degenerate gamblers if I want to be a little bit more mean. But basically, all these nostalgic uh UM traders got on to Reddit and they kind of organized this thing to do a short squeeze, which was to

buy buy it to push the price up. And what happens is when they were short that game Stop, they're basically borrowing against it, and so as the price starts moving up, they're losing money because they're shorting it. They're betting the price will go down. But as the price went up, they were losing money, and so they had to keep putting more money in to UM to keep

their position going. And the these Reddit traders from Wall Street bets were able to put so much money in that it nearly bankrupt Melvin Capital and they had to get a bunch of money and few But then what happened was even worse UM than like Robin Hood halted trading, and then UM they read it, shut down the message board, and Discord shut down their servers, and they did everything

they could just stop that. They made it where people couldn't sell anymore, all these things to protect Wall Street. So Wall Street didn't lose any more money. And as bad as that was, as much as that ruined the integrity of the system in my in my view, it's

only continued to get worse. And so we saw this week, as as as I've been talking about a lot as you listen to me on a regular basis, as the governments around the world, all the central banks around the world continue to print an unlimited amount of fake counterfeit

paper feat currency created created money from thin air. And the more that they create money from thin air, the more people are gonna want to buy real, tangible, real things that can't be artificially increased or inflated were created. So um, those are things like commodities, those things like oil, like wheat, like gold, like nickel, and yes, like bitcoin, bitcoins not tangible you can't hold in your hand, but it can't be artificially created. Um. And so we saw

this week something big happened. I saw um that the l m E forced a halt to nickel trading, and it canceled deals after prices topped over a hundred thousand dollars. So this was this was unprecedented. The LEEMY is the London Metal Exchange. Now, what a lot of people don't know probably about the metal industry the gold industry is that it's it's uh probably the farthest thing from like

an actual free market. Um So a free market, you know, stocks are basically trading freely every day and through the buying and selling, it finds um price discovery, right, the prices discovered. But the gold markets don't work like that. Um they're set um. The price of gold set every morning by a couple of guys on the phone call from the l b M, a Lennon Buoyon Market Exchange, and and they they basically set the price. And so we also have the London Metal Exchange the ELEEMY. They

also kind of control the price. And so they were forced to halt nickel trading. And nickels a commodity. It's a mineral that's used especially for UM batteries, for ev vehicles, things like that, And they canceled trades after prices doubled on Tuesday, to more than a hundred thousand dollars per ton um, and it was blamed on short covering by one of the world's top producers, so very similar to

what happened with game stop short covering. And so what happens is a lot of times these producers, because they're so long, meaning they're they have so much material in the ground, they're they're long if they own it. If you own it, you're basically uh, betting that the price goes up. That means you're long. And so a lot of times these producers, since they're already so long, they'll go ahead and put some shorts to kind of hedge that if the price drops down, they're protected a little bit.

And we saw that the shot came after as Western sanctions threatened supply from major producer Russia. So all these all these sanctions on Russia has created lots of unintended consequences, and so it threatened the supply and remember supply demand. If you don't have enough supply and demand stays up, then what happens with the price that goes up? Obviously, and it says uh, it marked the biggest crisis to hit the one and forty five year old exchange in decades,

and I said, it's it's unprecedented, they said. They said. The suspension of the nickel market has created a number of issues for market participants which need to be addressed. Buyers are scrambling for the medal crucial for making stainless steel electric vehicles, and traders said some positions holders have also been struggling to pay margin calls. So these people that are short it are being caught on the wrong side another' having to meet these margin calls, are having

to come up with this money. But that's not the that's not the story I'm really to want to tell you here. The story I want to tell you here is that in order to save a few big investors, to save Wall Street, basically the l m E halted all trading. And not just halted trading, they canceled orders on individual investors who had made millions and millions of dollars. Said nope, you made, you made, you risked your money. You did the hard work, you did the research, you

took all the risk, you made all the money. Congratulations, but we're not going to pay you. We canceled all that. Sorry. And in order to say supposedly, in order to save the system from crashing, they had to ruin the entire integrity of the system. And this is what happens at the end of these long term debt cycles. I read a quote a last segment from Vladimir Lenin when he says, at the end of this cycle, UM, basically the best way to get money would be two would be gambling

and theft. And that's exactly what happened. And so we're witnessing this breakdown in real time. I mean the last time, I mean, the Leemy basically just decided to cancel four billion dollars worth of nickel trades last week just to save Wall Street. They save JP Morgan and some local brokers. It's that bad. And I mean, this is dwarfs everything,

And so we're literally witnessing the system crashing. Um. I got a lot more, a big one with Saudi Arabia and what's gonna happen with the oil and the dollar, maybe the final stake in the dollar. That's the one to talk about. I want to talk about bitcoin and work, and bitcoin fixed work and fix a lot of things. I want to talk about Europe's trying to do with with cryptocurrencies that could really affect the future. UM Deloitte, one of the biggest financial institutions in the United States.

What they've recently said, I got a lot more to cover when I get back. You're listening to the Mark Moa show talking about the intersection of finance, politics and technology, talking about the decentralized revolution, trying to make it all sense makes sense to you. You can see it all in context. I'm gonna be back with a lot more.

Do not go away, all right, Welcome back. You are listening to the Mark mo Show, talking you through the changes that are happening in the world right now, talking you through the changes that are really being brought by three cycles converging right now. That's politics, finance, and technology all coming together. We're talking about the decentralized revolution um that we're witnessing, that we're living through right now and

every day if there's something really big happening. Before the break, I was talking about how um the Ellemy the in the middles Exchange canceled over four billion dollars worth of trades. Basically just told a bunch of people, sorry, you you you don't you don't get your money. I mean, they did that to save you know, Wall Street, save JP Morgan, and they destroyed the integrity of the system to potentially save a couple of people. And this is just happening

more and more and more. The United States is really trying to torpedo their own grip on the world. Of course, the US dollar is the reserve currency of the world. What does that mean? That means that UM, that it's the reserve currency. That means that nations around the world hold their wealth in dollars. If you're if you're if you're a nation, you have hundreds of billions of dollars. How do you hold that? Well, you probably hold some gold and you also typically hold US dollars in US

dollar treasuries and UM. When the sanctions started in the United States, basically UM seized Russia's bank accounts, Russia being one of three global superpowers. Now there's other superpowers with nukes. Russia's one of three global superpowers with nukes. UM. The rest of countries are tier two though. UM. But if you're Russia, one of three globes prowers with nukes and your bank accounts got frozen and seized. If it can happen to the Russia. It can happen to any country

in the world. And the other countries around the world said, we'll shoot, we don't really want to hold our all our savings in dollars anymore. That doesn't make any sense if they're just gonna take it from us. And so the whole world is trying to figure that out. Now, if I take you back in time a little bit, if you watch any of my content, are listening to me on a regular basis, you know that I love to talk about history. I love the historical context of this.

And so if we go back in time, in the entire world's financial system was reset in what was called the Breton Woods Agreement, and basically, um, the dollar would be backed by gold. Thirty five dollars would be exchangeable for one ounce of gold, and then all the currencies of the world would be backed or would be pegged to the dollar. So the entire world was on this gold system, and it worked really well because, um, you can't just artificially create more dollars, because you've had to

have the gold. Well. In nineteen seventy one, then President Richard Nixon removed the dollar from the gold standard and when the dollar was removed from the gold standard, then all the other currencies of the world were pegged to the dollar. We're also removed from the gold standard, and so then why would anybody use gold? I mean, I'm sorry, why would anybody use dollars? And so the whole system got shaken up, and a couple of years later we

entered into what was called the petro dollar system. And the petro dollar system basically said that the whole world needs oil, and Saudi Arabia produces all the world's oil. And so what we'll do is the United States will make a deal with Saudi Arabia where we promise the United States promises to always take care of you. This might bring answer some questions as to why the US

is always trying to take care of Saudi Arabia. You might remember after one after nine eleven UM, then President Bush was secretly flying uh Saudi people out of the country UM when no one was allowed to fly UM. And this is why UM. So the United States basically promised to always have Saudi Arabia's back, always, always protect them militarily, etcetera. If Saudi Arabia would always sell, always

price oil in US dollars. Since the whole world needed Saudia's oil, the US was able to maintain the US dollar reserve status through what's called the petro dollar. But the petro dollar is dying. The petro dollar is changing, and it changed rapidly right before our very eyes this week. As a matter of fact, per Yahoo News, Saudi Arabia reportedly is considering accepting Yuan's Chinese currency instead of dollars for oil cells. And don't don't don't underestimate how big

this news is. UM. A lot of times, when you see this stuff happening in real time, you just don't really get it, um. But when you look backwards in time, you can see these key points in time that were really instrumental, pivotal, and this is one of those. So it says Saudi and Chinese officials are in talks to price some of the Gulf nation's oil cells and want rather than dollars or euros um. It says that nearly eighty percent of global oil sales are priced in dollars.

Since the mid nineties seventies, which is when the petrol dollar was put into place, the Saudis have exclusively used the dollar for oil trading as part of a security agreement with the US government. This is reading from a Yahoo article, UM. And so there you have it. Now, the talks are the latest in ongoing effort by Beijing both to make its currency tradeable in international oil markets and strengthen its relationship with the Saudis. Specifically, Oh, there

we go. So, Um, the US had this deal and now it's all fallen apart. China's weaseled their way in there, and they're they've been aiding them with construction of ballistic missiles and consultation on nuclear power. UM. And at the same time, it says, Uh, the Saudi US relationship has

been increasingly frayed in recent years. UM. There was an assassination of a journalist in two thou An eight team that caused that problem, and then President Biden, who has said the assassination should make the kingdom a quote unquote pariah. And so things have just been falling apart with Saudi Arabia. Biden's comment to them really seemed to throw them over the edge. And so we've seen this starting to fall apart.

Of course, like I said, China has moved in, Um, Saudi Arabia has now started moving oil over to China, providing one point seven six million barrels of oil a day to the country last year. Um. But now, like I said, um, selling it outside of the US dollar, which I said of it is in U S dollars. This is a big, big, big deal, especially if you're in the United States. Well, it's really for the whole world. I mean, if the world's reserved status changes, the entire

world changes because it's the world's reserve status. So not just as the United States person, it happens all over the world. UM, this is something big that you need to be paying attention to. So that's why I'm bringing it to your attention. Um, the world's changing. Now, what will be eat the new reserve? Can we really trust any nation? I mean nobody trusts. Nobody trust China. Is they're really going to use the Chinese on um. And this is where I think bitcoin comes into play. Of

course gold is still in play there as well. But this is big news. The world that we know it is changing place and a lot of this is the catalyst. Is this war right this war that's happening right now, and it's it's it's it's the catalyst like I said, Um, first, the sanctions, we kick everybody out of the financial system. Those people that were kicked out of the financial system now have to find another way to survive. They're not just gonna go die, So how do they continue survival.

We can't use the US dollar anymore. We have to find something else. And then um, then we say other nations, now you can't trade with Russia either, But the other nations are like, but shoot, we still need their supplies. We still need their food. So Russia and Ukraine make up about thirty percent of the wheat and corn for the world, so the rest of the world needs that. And it's like, well, shoot, like we kind of need that, and like your make in the sanction them and then

people start, you know, it starts falling apart. Next thing, you know, the petro dollar, which has kept the dollars reserve status alive since we left the gold standard, falls apart, and the world as we know it changes right before our very eyes. Um. Interesting, interesting news. Now there's some other stuff going on. There's specifically, there's stuff in the news this week where the EU, the Europe Europe has been trying to weigh in on what they want to

do with cryptocurrencies. Hint. They want to put a lot of regulations in place on them. UM, A lot of regulations that could be very dangerous by holding back to the technology. Dangerous in that way. UM. The technology is needed to make this world better. The technology is needed for our kids to use it. The technology is needed to increase the economy. Uh. And and build out new places. Um. They don't want it. They don't want to discript their disrupt their monopoly. I want to talk about a couple

of things that they did. UM. One of them is just so idiotic that I just can't even believe they put this forward without thinking about it, which, of course they don't want to talk about that. Um. And then I want to talk about some actual data that shows which way the market for cryptocurrencies is going a lot of stuff. When I come back, UM, you listen to the Mark Moss Show. I've got a lot more. Don't go away, I'll be right back. Everyone. Welcome back. You're

listening to the Mark Moss Show. We're talking about I'm talking you through I'm trying to bring context to the world by telling you about politics and finance and technology. If you can understand how these three things feed into each other. You can understand what's going on in the world today, you can know how to navigate it, how

to prepare for it, and all these things. Now, before the break, we we talked about some of these giant catalysts that just happened that maybe don't seem that big when you're looking at him, but I can promise you in ten twenty years from now, when we're looking backwards, these dates are going to be the key pivotal points. Um. If you've missed him, I'm not gonna recap for you. Sorry about that. Make sure you don't miss him next time. Or you can check it out on the Mark Moss

uh Paul podcast. Just search Mark Moss podcast or Mark Moss I Heart. You can find that and you can catch up there. Uh So, don't worry. I got your back. But like I said, these are gonna be key pivotal moments. I mean, you do not want to sleep on these things. Um and I and I just want to preface I have I have some more stories that they'g into, but I I want to preface that. I mean, I know a lot of stuff I talk about is scary, and it is change is scary. It leads the world to uncertainty.

We don't know what the world holds in front of us, um, But I do believe that there's a lot of hope on the other side. So while it's scary, I'm I'm excited for the world. I think I think the world's gonna better place for my kids. I'm excited about that. But but it is uncertain and uncertain scare scary. UM. The way that we beat uncertainty is with optionality. And so the more options that we have, the more equipped we are to deal with this uncertainty that we deal with.

Of course, one of the best ways to have more optionality is with money. And so if you can understand money, you can navigate money, you can keep your money through these turbulent times. You can come out on the other side of this much better. Um. And so that's why I spent a lot of time talking about it. I don't I don't like to talk about money just to pile it up in a big bank account, um. But rather it's for options for me, myself and my family

and my friends. It's also so I can help other people. I love to donate to charity charities and and and do a lot of stuff that way as well. UM. But it's but it's an important piece. Not not to be greedy. I don't drive a lambo. I could buy several of them, but I don't. I don't care about that. It's options for me, my family, etcetera. And it's it's to help other people. And hopefully you think about the

same thing. So that's why we're talking about money. It's important. Um. And like I said, UM, I believe there's massive hope on the other side of this. It's just we have to get ahead of this. UM. I was at a as A at a conference a week ago and one of the speakers was like, we just we just we just can't die. We just have to stay alive. He said. Our goal is to be like a cockroach. Um. And so if we can keep our money intact, we can keep our purchasing power intact. Over the next couple years,

we're going to have enormous opportunities. Um. And for its one of the best. One of my favorite places to put money is in bitcoin. I also still like the whold gold as well, outside of the banking system where they could just take it a ay arbitrarily from us. UM. Now, if you'd like to learn some strategies or hear from about here, like exactly what's gonna happen over the next couple of years and more importantly, what you should be doing about it. I am having a live conference. I'd

love to have you come hang out with me in Dallas. UM, you can find information for Market Disruptors live dot com. I got like fifteen speakers in the world coming to talk about what's going to happen and uh, what you could be doing to navigated. Love to see you, meet you on the other end of this Market Disruptors live dot com. But some of these rules are that they're that they're passing. There's changes that are happening super super fast. UM. The EU Parliament had to vote this week, which was

so crazy. UM. And they tried to pass a rule that luckily didn't go through but just barely. And the proposed rule would have been in effect. It would have banned popular cryptocurrency Bitcoin across the European Union. The ban Bitcoin across the European Union. That's massive now, it says. The European Parliament's Economic and Monetary Affairs Committee voted on Monday to keep the provision out of a draft, so

they decided not to do that. Um. But it was this comprehensive regulatory package for governing digital assets, and it sought to limit the use of cryptocurrencies powered by an energy intensive computing process known as proof of work across the EU twenty seven member states. And here's the best part. The proposal met with a heavy backlash from crypto advocates worldwide. So, um, crypto advocates me, you, we are becoming a massive voting block in the United States. We may become the biggest

voting block obviously in Europe as well. And that's super bullish. Um. The proposal met with a heavy backlash. That's what they state as the reason why. But listen how absurd this was. The proposal required all cryptocurrencies to be subject to the use quote minimum environmental sustainability standards with respect to their consensus mechanism end quote. So this proposal says that all you guys that are making technologies cutting edge technology, not

just technologies technological revolutions. You guys are designing this, these new technologies that are so cutting age that will literally change the face of humanity. You have to you have to build this new technology to meet our standards. And we're a bunch of old people that don't know anything about technology, and we didn't design it, and we didn't solve any problems. But you have to somehow fit your

technology to fit inside of our standards. I mean, it is the most absurd thing I have ever heard in my life. The Rule proposed a phase out plan to shift their consensus mechanism from proof of work to other methods that use less energy, like proof of steak. Wow, let me let me, let me let me unpack this a little bit for you. So so what does this mean here? Well, proof of work? So um, instead of having a centralized database um like bitcoin, I'm sorry, like

Facebook has. Instead of one database, you have decentralized database. You have a bunch of databases, thousands or hundreds, thousands or millions of databases, and those databases have to achieve consensus, meaning U more than have to agree that that transaction is valid. And Bitcoin uses something called proof of work. And that's where these computers um log into the network and they mine bitcoin and they help process transactions. And they say that they use too much power. Well, what's

too much power? They say? Bitcoin mining consumes um more than said uh um, bitcoin mining would rank in the world of terms of electricity consumption if it was a country in itself. Okay, you know what else does to clothes dryers? Do we need clothes dryers? You know what else does? YouTube? YouTube does do? Do we need YouTube? So? Like, at what point, I mean we could say all these things like clothes dryers and YouTube do as well? Um is that important? Which one is more important? Who's to

say what's more important than the next? In my opinion, bitcoin is more important than YouTube or Facebook or TikTok. It's just absurd, and they want to these politicians want to regulate what these developers can do. I mean, it's just insane. But it doesn't seem to stop bitcoin anyway.

We saw this week that's an article on coin desk said that bitcoin one point two billion dollars worth of coin Base I'm sorry, one point two billion dollars worth of bitcoin left coin Base in a sign of of adoption. So basically, coin base is one of the largest bitcoin um exchanges in the world. UM. So basically you can wire your money to bit a coin base and you can buy bitcoin, and a lot of people leave their bitcoin on the exchange, but this says that the coin

base shows their outflows. The amount of people pulling bitcoin off the exchange has hit a new all time high. As a matter of fact, it says a total of thirty one thousand bitcoin left coin based last week, the highest single week outflow since two thousand seventeen. It's pretty big data. This is. This is data from glass notes. A bitcoin is an open source database, so we can see all this data. So it's unlike any other asset

out there. They wanted to say, quote large outflows like this one are actually part of a consistent trend in the coin based balance which has been stair stepping downwards over the last two years. And so over the last two years, more and more people are pulling their bitcoin and cryptocurrencies off the exchange as they should do, not hold it on the exchange. We saw what happened in

Canada when people got their bank accounts frozen. We saw what happened in Russia when they got their bank accounts frozen. And you can get your bank accounts frozen if you have money in the bank. You can get your bitcoin frozen if you have your bitcoin on an exchange. But if you take your bitcoin and your cryptocurrency off the exchange, then of course you have it and nobody can stop that. It says that the past week's outflow has pushed the number of coins held on cooin based to a four

year low. UM they still have six fifty of them still have a lot. Because the balance held across all centralized exchanges has dropped to two point five million, it's the low list number since two thousands eighteen. The decline and exchange balance means fewer coins are available for liquidations on the exchange. In other words, the cell side liquidity is drying up, suggesting scope for a sharp move on the higher level. So supplying demand if there's less bitcoin

that can be sold, what happens um supply demand. If there's more demand, less supply, the price goes up. But the key piece here is that more and more people are pulling it off of the exchange, and you should too. Like I said, let Canada be a lesson to you. Don't go away. I got a lot more to go all right, welcome back. You're listening to the Markma Show. We're talking about talking about the world. We're talking about

a lot. I cover a lot on the show, I like to talk about the converging cycles of politics, finance, and technology all coming together, talking about the way the world is transitioning into a decentralized revolution and what that means, and so you have to kind of look at it from a bunch of different angles. Now, before the break, I was talking about, UM, some regulations over in Europe that were just completely idiotic and they were trying to

basically change. They're trying to limit the the amount of progress that new technologies having by saying, no, you can't invent these kinds of things. You can only invent these kinds of things, or you can invent new things, but it must fit within our own little box. That's just not how it works. That's not how that's not how progress works. That's not how inventions work. Um. It's just completely crazy, UM to think of it like that. Um,

But that's exactly what they're doing. They were trying to limit a consensus algorithm for bitcoin called proof of work, and UM, it doesn't work like that, and the data and the numbers they have is completely wrong, which is crazy. UM, But you know it doesn't stop them anyway. They continue to go from there. They continue to be even more

crazy and they went on UM. There was another one that says here the the the n c A. The chief of the n c A claimed or wants to regulate coin mixers, but crypto industry is already one step ahead. It says the chief of the n c A claimed that coin mixing services offer a layer of anonymint and protection to criminals looking to launder and wash their dirty funds. So what does this even mean? What does this mean

coin mixing? Well, if you have bitcoin, because bitcoin is on an open source ledger, you can see some of the data. Now, it's it's not easy, but there's companies that specialize in this. So for example, company like chain Analysis and they make this software. The big exchanges like coin based could use UM and it can, and it can.

It can. It can basically go through all the open source ledgers and it can start to harvest the data and it can start to kind of put it all back together UM and it can start to try to kind of figure out some things. And what happens what coin mixing is I can put my my coins into like a mixer and a bunch of other people put their coins in and then it mixes them all together and then it redistributes them back out until now the

history is now obfuskated or it's gone, it's hidden. And they're saying at people using these coin mixing mixing services offer a layer of anonymity and protection to criminals looking to launder. Well, it does offer a layer of anonomanity and protection. Um, it does, yes, But does that mean because I want a non amenity, that I'm a criminal automatically because I want privacy? Now cash has a non amenity. I can use cash, I can spend my dollars anywhere

I want. Does that automatically make me a criminal? Am I am? I am? I guilty until proven innocent? I thought, at least in the United States, I was innocent until I was proven guilty. I get it. Like, Um, I could potentially use my money and I could do something illegal. But there's crime. I mean, there's there's that's that's that's that's a crime, and that's already illegal, hence the name illegal. The money isn't illegal. I could also drive my car

on the way to do something illegal. Should we also ban an outlaw cars. I might also actually eat some food on my way to do something illegal, So should we ban food as well. See, we already have laws in place for things like that. So what they're saying here is that anyone who wants to do coin mixing because of the they want to a non amenity, they must be using it to launder their dirty funds, they

want to say. The United Kingdom's National Crime Agency, the n c A National Crime Agency, seeks to regulate the crypto coin mixers under the country's laws against money laundering. Coin mixing tools are popular in the decentralized world as they maintain the privacy of transactions. These tools often mix several transactions to obscure the origin of a popular of our particular transaction. Um, okay again, the cat I mean the cash does the same thing. I don't have to

mix it. Cash preserves my not amenity. That's the whole point of cash. Now this is this, this is brand this is the brand new thing. For the entire history of the world, money was like commodity money. So gold was money for five thousand years before gold. We had seashells, we had rocks, we had feathers, and I would go collect those rocks, feathers, seashells or gold. I would hold it and I would transact with it, and that was all done in a decentralized fashion, and it was all

done anonymously, and everything was fine. It wasn't really until about twenty years ago and when the during the nine eleven World Trade Center UM incident, that the United States passed a bill that took away more freedom than any other bill in the history of the world. And I was called the Patriot Act. And then the government wanted

to see every single transaction you ever did. They wanted to limit the amount of cash because UM now to the point where they want to look at all bank accounts that do more than six hundred dollars because your six hundred dollars could potentially lead to terrorism. Never Mind that the United States just gave the Tally ban you know,

more black Hawk helicopters than the UK has. Never mind that we gave them billions of dollars, never mind that, UM, your six dollars could be the cause of that, supposedly. But really this was never a problem until twenty years ago,

ntill they really wanted to do this. And so UM cash, like I said, always pervert, preserves that anonymity and there's no reason why bitcoin was designed to be digital cash and anybody who thinks that we have to know what it's called k y C. Know your customer doesn't understand economics. You see, Um, if I'm going to do business with you, with your business, I have to know you. I know that your business does good business. I know your product you're good, will be will be, it'll be a good

product or service. I know I can trust you to deliver the quality, et cetera. But you don't have to know me. That's why we have money. You give me money, I give you the good in service. I don't need to know. You know, in the old days, we didn't have money, and so I would keep a ledger. I had to know everybody in town, and I'd say, okay, John owes me this, and Rick owes me this, and Marty owes me this. I keep a ledger. I had to know those people. But cash removes that. We don't

need to have that. Oh no, but you know, for for for for potential crimes. You could you could can make crimes. Yeah, but we have laws against that. It was law again, scrap against that. So this is a new problem. It's interesting to see what happens here. Um, again, more politicians passing more arbitrary root rules to limit them.

You know, progress now. Uh. Christine Lagarde, formerly head of the i m F, now head of the ECB or i m F is International Monetary Fund, the ECB as European Central Bank, she's an actual criminal, actual like she's actually been found guilty of criminal charges actually, and she runs the European Central Bank. Um. And she said that, um, if I can quote it, let's see if I can quote it. She said that progress is a threat to our financial stability. That's what she said, progre this is

a threat to our financial stability. Um, no, no, no, no, no. Progress is a threat to your financial monopoly. That's what it is. We want progress. Progress only happens when something better comes along. It's called creative destruction. Something new comes out that's so much better, a thousand times better that it kills the old way. So for example, code could been around for a hundred years. Digital cameras destroyed code. Act.

I mean, film is great, allows take pictures. I I appreciate that, but you know, digital cameras are just better. Progress changes things for the better. And yes, it would change the money supply for the better and yes, it would cause you to lose your financial monopoly. So it's not the progress destroys our financial stability through it destroys their financial monopoly. Very rich to hear that coming from a literally convicted criminal who runs the European Central Bank.

UH to talk about that um and how your potential UH using bitcoin anonymously could be UM because you're a criminal. Remember we're supposed to be innocent until proven guilty. Now they want to impose these k y C no your customer regulations on you so they can just track everything. So that means that you have to give them your driver's license and your passport and your home address and

all these things in order to buy bitcoin. And then when you want to convert bitcoin back to Fiat, you also have to do the k y C know your customer as well. And then if you put your information and when you buy it, and you put your information when you sell it, then these softwares like chain analysis can put all your transactions together and figure out who belongs to what. Now, of course, if we if we if we get bitcoin without k y C, and I spend bitcoin without k y C, which is of course

the way it's supposed to be. Then they can't ever put that data together. Um, you're listening to the markmah Show talking about the intersection of politics, finance, and technology, talking about the decentralized revolution that is happening. That's what I got for you today. Thanks for listening.