What's up, everyone? This is Anthony Pompeo. Know many of, you know, me as pomp you're listening to the pump podcast, which is my effort to find the most interesting people in the world and sit with them for hours. While I ask questions in an effort to learn. We have no advertisers on this podcast. So, would mean the world to me? If you would subscribe to the show on your favorite audio platform, watch episodes on YouTube and tell your friends and family about the podcast. My goal is to help Millions learn from the world's most interesting people. So let's get into today's
episode. Balaji srinivasan is an entrepreneur and an investor. He was the former Chief technology officer at coinbase. A former General partner at the Venture Capital firm, Andreessen Horowitz. And he also has a number of nine-figure exits as a founder of companies in this conversation Balaji and I discuss the current banking crisis, the potential of hyperinflation. What happens to the US dollar moving forward? Why he made a 1 million dollar Bitcoin
Over the next 90 days. And what exactly Balaji thinks has led up to this scenario. I really enjoyed learning from Balaji in this conversation, and I hope that you enjoy it as well. Once you get done listening to this, this is an important conversation. So jump on Twitter and let us know what you agree with and what you disagree with that conversation after the episode can help us all continue to pursue what is truth. And what is noise here is my conversation with Balaji srinivasan, Anthony pump, Logano running,
Ins pomp Investments, all views of him and the guests on his podcast, our sholay, their opinions, and do not reflect the opinions of pomp investment. You should not treat any opinion expressed by pomp or his guests as a specific inducement to make a particular investment or follow a particular strategy. But only, as an expression of his personal opinion, this podcast is for informational purposes. Only pomp, good to good to see you, you can, you can see that I'm like, you know,
Still normal guy or would have right
but let me a sickly start here. Let's start sure. Balaji I think a lot of people saw you put the bed out and they're all focused on the bet but to me the bread is merely you sounding the alarm. And so let's go. Let's go back to 2020 and walk us through what happened to get to the point where you believe the banks are now in solvent. Like, how did we get here?
Question. So if you actually go and you look at my my post on this. Okay. So why did I do this? Actually I I did not propose the bet. I accepted the BET, right? He's the one who made the BET over here, number one. And number two, is he did that after I put up my initial, I thought I would do tasks and so on for people like they would go and go and do tasks for Bitcoin, right? But it was a good way to this, actually got 11 million views
It was good bait to bring attention to the key point, which is everything The Narrative outlined in this post here. And this fortunately got 2.3 million views okay? Because this is a core set of cons of you only read one post read this, okay? I'm just going to go through it. You can you see the screen? I can. Okay. So got a post right here. So this basically you know this is the BET thread, but the point of it was actually get people
To read this, okay? Just as in 2008, the bankers lied, we forgot how much they had lied to us. Because, you know, that was, that was obviously a huge thing to theirs and they basically almost bankrupted the world economy, lying to us, lying to themselves some competence combination of greed, and competence malice or whatever. Blowing up the whole world economy. Right this time, the central Bankers, the banks in the bank, Regulators have lied to all dollar holders and depositors it's not your typical fractional-reserve situation. There is enough in the
Banks in a mark to Market base to cover withdrawals. I call it Uncle Sam brankwyn freed okay that's actually if you want one line just like Sam bregman freed he you know he owed people let's say 1,000 Bitcoin right? But when they been in, he had some balance sheet that said his assets added up to 1,000 Bitcoin and he fooled himself or he fooled the rest of the company or whatever it was into think he actually had that, but he's actually like gambling at all this other stuff.
You mean marked it at what he had when he bought it, but he didn't have it. When people came and when people actually came, he couldn't liquidate those assets. Actually get the Bitcoin that they wanted because he had gone and gambled it, right? And, and then, of course, the entire exchange collage, right? This is basically, what has happened, not just at FTX, but it all the bank's, all the bank's bought long-dated us, treasuries, as well as other Bonds in 2021. They binged on bonds, it'll show you in a second. Okay, they binged on bonds.
It's and the basically in response to the feds guidance. Here's here's the article. You see this banks are binging on bonds, but not because they want to see this Smoking Gun article right from 2021 shows, enormous increase in buying up all these bonds and less commercial loans, they all got centralized on one guy. Uncle Sam right by bonds, even if it means skimpy profits. So they have to invest in when the least
Creative assets, around government debt, guaranteed to produce skimpy profits, right. And actually, what happened was
Basically that all the printed money from 2020, sloshed around the economy and a cut off, the normal flow of normal loans because customers had, you know, high levels of caching and say Norman take out loans, so broke the banking model. So, all they did is they put all this enormous amounts of cash into bonds. And when the yields on the treasury note Rose to one point seven five percent Banks hungry for higher returns rush to buy them. So this was like, 1.75 percent was like a high return in toy 21. August 21, right?
And moreover and that spiked in last, right? So by this is all like banking gobbledygook too many people right? But part of the thing about this, I'll explain the simplest terms. I can write first what you should do right? What you should do is buy Bitcoin, get your coins off exchanges and go to a crypto friendly jurisdiction inside the us that'll be like Florida or Texas or something like that outside. The US which might actually be better honestly as I'll get to would be like El Salvador.
Or UAE or, you know, like, Singapore. And so unlike Western Europe and not so much, you know, any basically, the closer it is to Blue America in a network sense, you know, Japan is far away from Blue America, but it's very connected to Blue America and the sense of having lots of US dollar deposits, the closer it is to Blue America in a network sense, the more it banked on the fed and the worse off, it is okay. And just to give you a sense of what actually
And first, I'll show you some graphs, okay, scraps? Get the point across. This is a graph of like, how much treasury is making? Look at that just down into the right? Okay, this is a graph of how meaning, maybe they're losing money. Okay. Treasury. The central bank is losing. My doesn't look like normal normal times. Okay, this is a graph of unrealized losses.
Okay, and this is really like with the core bomb. That's blowing up this whole thing, all of these
washee-washee. Just so people understand the chart that we're looking at here, this is unrealized losses for the bank's. They actual large Banks, midsize Banks, small Banks. This is their unrealized losses that are saying on the balance sheets that. They don't necessarily have to mark the market.
Yeah, unless you actually come and ask for your dollars, okay, if you ask for your cash they'll be an uncle Sam. Bickman freed situation where they don't have the dollars on hand to make up for it.
But that's what happened with s Silicon Valley Bank, that's what happened with other banks. Credit suisse's. Now just admit it was a bank run that got them in the digital age. Bank runs are very fast. Once people hear that something's possibly insolvent, they all just go and pull their money out, right? And so the whole concept of, oh, the only ask for this bunch of this time, that's no longer the case you could have everybody do an outflow at the same time if it goes viral.
And on that. So I think it's on that point. I think it's very important to kind of understand that what you're talking about is not just the flow of information being fast, but you're also talking about the fact that now for a bank run to occur, you don't have to go sit in line and or stand in line at the bank. You can literally open a new tab, press a couple buttons and move your money. And so the speed of action matches, the speed of information and that's really, what's driving? A lot of these
problems. That's exactly right. That's exactly right. And so essentially, the digital Bank Run,
One is I mean we were pushed into the Sarah by the FED as I'll get to basically um, you know, these graphs, okay, they're down into the right graphs, they're huge. I mean, this is 2008 for comparison, right? These are enormous enormous. Yawning, you know, numbers here, right? And here is
Here's a Community Banks. Okay? So this is usually commercial Banks and this is the Central Bank, okay? And then the Community Banks, here's the FED admitting that, you know, Rising interest rates have and again, all this is in jargon, and it's jargon just like, you know, it's like camouflage for a sneak, you know, a snake has evolved camouflage. You didn't design the camouflage. But if it didn't have the camouflage, you be able to catch it and kill it, right? So all of these words are ways for them to hide the ball from,
You fine. Print is not simply a tactic, it's their strategy, right? The you know, in 2008 you they would have used mocking terms on you. There is said something like, tell me, you don't know what a CDO is, telling me you don't notice videos, okay? And the whole point is that, nobody knows what it CEOs. Now, you're the guy selling another guy buying it. They're all some guys relying. Some guys like to themselves, some guys lungs are counterparty soon as you're stupid, nobody ask the obvious question of this thing isn't worth. What we think it's worth. And if you did say that I can't
Leave. I mean to be marking on the portfolio so nobody wanted to believe that until somebody poked around enough and found actually these houses. Nobody speaking payment so that's right.
And in the same way unrealized losses lowering tangible actually Capital. Basically what they're saying is at the end of 20 14 Banks had, you know what, Angela quick. This is thing they made up tangent. Like we have a tldr is at the end of 2012. 14 Banks were insolvent by June 30th day. New 333 of these Community Banks were insolvent. Meaning if there is an economic shock, go ahead. If you came for the money, the money was gone. Go ahead
and that comes specifically for those that are trying to understand what happened there at the end.
20:21 rates are still at zero percent by June. It was very clear that they were hiking rates and we're going to continually come March. So,
yeah, that was a surprise
June. It was very it was very severe, and it was obvious that they were now under water on the debt today and bought.
Yeah, the thing the thing to remember is this is like, you know, how in so many other contexts right masks, don't work before they do, right? You're right wing conspiracy theorist, blah blah. If you're saying the coronavirus is even here and you shouldn't
Mass. Oh my God, everybody needs to wear a mask at all times, blah blah blah, right. And the science is said this, right? And they just for, you know, they either truly forget or they don't want to remember, they just shift like a school of fish, right? The lab leak. Obviously, a conspiracy theory. Oh, I always had suspicions about the lab leak. Why wouldn't you seems like a reasonable thing, right? Inflation. And this is a big one, right inflation? See you can do that maybe for some political stuff, right? But when you when you do it, when you're
You're actually signing a contract at the flip before the Flop, then everybody screwed. Okay. And that's what happened, essentially back. When the political class was just denying things. Stop worrying about inflation. Right, inflation. Fear lurks. Even as officials say not to worry, pal will download plays inflation. Risk is yelling for Shadows future spending, right? And then Loop like this, okay? So you know again if people watching this don't need to know how interest rates work, but essentially what they did was they
Doubt everybody, everybody is making long-term plans. They said inflation was a conspiracy theory. It's not real you by 10-year bonds that denial continued through 21. Then the rates just got hike Superfast in one year higher than 10 Years. Everybody who's a bondholder got destroyed, including SUV by many others all by the fed. This is what happened right? Everybody. Who trusted the FED everybody who made essentially a long-term bat in 2021 on the
Full faith and credit use carbon on the Financial Health. 10-year bonds must be a stable countries. I'm supposed to go we up and down like this, right? They got destroyed absolutely destroyed. Basically in a sense if you still thought America was the same country in mid 20 21 and you still kept doing what you were doing. Then you weren't doing the right thing. Clearly the country, it just permanently changed, right? Even if you know, like what had happened before and trade 20 with the crazy riots and so it's of a all of that now became the government.
And so that kind of went now it's like swallowing the poison right? And so everybody you know the form me of being the same but the substance we know totally different, right? And you know as I said, like inflation is a case. Where yesterday's conspiracy theory became serious condition. Wisdom the issue is all kinds of contracts. Got see, you know, a lot of folks claiming that SV, B was a victim of the industry. They weren't that big and they weren't shocked. The thing is, this is just either, it's either delusional or it's wrong or it's whatever. But you know, as I mentioned over here,
Even Janet Yellen.
Has admitted that the high interest rate environment basically that cause people to lose market value. I mean da, right. And everyone's like oh why don't you just head you interest rate risk? Well, because you can hedge, if it goes from like point, one percent to one point, one percent, you can't hedge of its point, one percent of those two, 4.75% adjust completely destroys all of your projections. So just showing you that
But I'm going to jump out of the banker stuff in a second because as I said the whole point of it is it's been naturally selected to be very confusing and to not know where things are right. But the but basically just to give you a sense a projecting December 2020 is going to be point one forever, right? Everybody who's trying to make long-term decisions is buying long-term bonds, and then, oh my God, it's actually a 4.75% enjoy 33, shit. You know? I'm now, I'm totally crushed, right? Because the rate totally changed and you can see actually a record of their
Casts and how they change over time. Now the thing about this is to understand these forecasts billions and billions and billions of dollars are based on them and when they wiggle like this because they're such conformist that they go up and down and up and down right when they wiggle at that extent, it would like Whiplash is the entire economy and causes all kinds of things to break and shatter and so on. Because all these Pension funds and all these things, the buy it on their guidance, trust them, and then they all go off a cliff at the same time, like Lemmings. And that's basically what happened.
So it's coming back up, the stack, you know, here we are. So basically, they all knew this huge crash was coming, okay, so all the stuff in interest rates and so on, you don't have to worry about that too much. I mean, it's kind of the back story to this, right? But the main point, is the banks central banks, the banks and banking Regulators, all new a huge Crashers coming. The phrases unrealized losses, but they never notified you the depositor instead they allow the regulars.
Add Banks to hide their literal insolvency and footnotes until one guy figured it out. Okay. And so here are just take a look at this. Ready? 1 2 3 4 5 6 7. I guess I'm the only one using Twitter blew to its fullest
when I saw you use this. I literally said Twitter blue is made for Balaji put notes. This is amazing
right? So because I'm not like this is not owe you some crazy guy. Just saying this table, I have names and dates and specific links in their archive. So I'm just
To
show you five links that show that the central bank, which is a fed, the banks in the banking Regulators, all new a huge crash is coming but they never notified you the depositor instead. They allowed Banks to hide their literal insolvency and footnotes until somebody figured out. Okay? So link number 1, here's the FED. Okay, all the banks are insolvent, 333, Community Banks versus for over here. Okay. And by the way, people be like, oh, how they hide it, huh, they publish it on the web, that's really high.
Hiding it right. It's called, you know, well you call the hiding in plain sight or you could say, all right, did they tell the depositors the millions of like Republicans and so on that the banks had lost their money, you know, that the FED had told the bank's lose their money. Did you notify the depositors publishing this coded kind of thing on their website does not say in plain English? That if you came for your dollars, it would not be there, right? So it's not it's like a non disclosure disclosure, right? Here's another one. You know, FDIC worried about growing under
Is lost in Banks portfolios. It's a very substantial, overhang it could impact our institutions, it's four hundred billion dollars. I mean, starting to be real money, right? Okay. And and it's because the FED raised rates, okay, then here is that same guy. FDIC chair is two or three days before SUV saying unrealized losses, we can a future bank's ability to meet economic needs. Write the total was six hundred, twenty billion dollars, right? And
And you know, just just absolutely gigantic numbers. Okay, here the FED itself. Okay, in fed minutes Feb 23. Again, this stuff is written. It's like verbally encrypted. You know, it's like ostensibly disclosed but it's not the effect of large. Unreal has losses on Bank security portfolios. So they did know that, you know, basically
You know, Powell the day later, right? Went and, you know, March 7th, you went and testified to Congress on March 6, is this FDIC thing, March 7th, you in charge of Congress, and he said something to the effect of that, the banks were solvent, right? But the FED. Lie Banks died. All right. That's basically, you know, we're going to get to the core of it. Once basically, the the FED had basically passed off. See the fender raise these raids in the value of bonds bank's own dropped. What happened was all the bank's panicked to like
Crap. We all listen to the FED. We all went and they all went and binged on bonds. Okay. And you know, here's where is it? There's binging on bonds it, listen to the FED. They binged on bonds, they all got destroyed at the same way, at the same time and then what do they do? They're like, what should they do in reaction to the large losses, right? Like, you know, the resulting impact on Capital, they're scared. The FED is just surprised them and just destroy.
Their entire portfolio, right? Anxious Bankers wondering, which they should do. And so, they decide to do is transfer Securities to HTM. Okay. The heck is HTM oh,it's. It's basically like whole to maturity. It's basically like Sam Venkman freed going and buying something it gets marked down 60%, but he says, it's still worth what it was. It's like your nft. You still think it's worth a million dollars? No, it's not worth a million dollars, okay? It was going to be your million dollars for it but you hold to maturity. Oh, actually no sorry, it's a little different than that.
People always will on the technicality. Oh, no, it's an entity that will return. That pays, you one percent each year and it will return a million dollars in, you know, eight or nine more years, but if you but today there's another one that you can buy for the same amount the returns you 5% each year or whatever. And so, your one is worth way less by comparison. They'll always want to be like, oh, that's specific typo or, you know, like a slight imprecision, he's but the substance of it is that they did some accounting magic to hide their Joy.
Gigantic losses. And this was true at many different banks. Like SV B also did this evidence of deception, by a few management, where they used to have very clean lines showing those Securities then they made it, you know, Reserve Reserve, right? And then suddenly oh, Tada 491. 20 like basically they're The Regulators allow the bank to hide their literal insolvency in a footnote. Okay. Oh yeah. You know we just moved things around eighty one point six billion dollars not a big 8 e 1.6 billion.
More than GT a small country put in a footnote. And this is what set up the situation, where some engineer at, you know, Dropbox or whatever, you know, like some, you know, some employee of some tech company goes to work. One day finds that their company's bank account, the money is gone and some American Bank that they thought they could trust for, you know, 40 years and wanting their business. Checking account back is blamed on them, right?
Right. Like think about, you know, how insane that is. And I was like, how could that possibly have happened, right. And one of the things that's going on here, by the way, is, you know, how if you do in San Francisco, right? You pay for all the police and get none of the protection, okay? It's what's called a narco tyranny. Okay, so that's like you're an Uber driver and you're in San Francisco and you get a 200-300 parking ticket, okay? For doing nothing.
It the guy who smashes your window and, you know, Wilds on the street and nothing happens to them, okay. So that's a tyranny and the Anarchy at the same time, right? Similarly, this is like an arc attorney but for banks where somehow the money can be gone overnight, that's the Anarchy. But the Tyranny is 5000, why the heck is this stupid? I mean, all these forms and all this verbiage there but the regulator doesn't know that the bank is insolvent, didn't
Warren depositors you find out in a bank run with all of these filings that was that was I was trying to figure out how when did this actually happen and then I pulled on that and I pulled on that and I pulled on that until I could add up what I was seeing in front of me and I was like they're all dead. This is just the first bank that floated up to the surface all the banks are dead and they're just going to keep coming up and so you know that's why I tweeted this. And nobody else here is like you know, March 11th as soon as I kind of I got on this.
Like a dog on a bone because I was like, how the heck could a two hundred billion dollar Bank go to 0 like this and it's like, oh, that wasn't a unique. Cause of them is treasure. Because areas, trying to blame it on. All they did Risky VC, bad. So know, they bought treasuries, which was like, supposedly the safest, in the world, right? And so, even on March like 11th, right, I was like
Where we'd like to see in the coming weeks, it wasn't a single Bank issues, the central bank issue, right? Most banks are suffering unrealized losses. Thanks to the rapid change. And if people are like, no, no, you're trying to make special eating, right? And there's all kinds of weird optical illusions that people have in this space, they like worship the FED. Oh my God, I can't believe you're blaming the FED. They think of the FED is like, like a god, or the referee or something where you're not, Wizard of Oz. Yeah, exactly. And you know, the thing is, I this kind of stuff. Always bored me. Frankly, because I
As you know, it's like it's kind of meant, it's a lot of money for sure but it's also written in such a way as to be boring and Co-op wigs. But point being though that this was 10 days ago, I was like, you know, we're going to not a single bank issue Central Bank should that was that was basically that was before. So you know, they basically have five banks, dad, right there, Silver Gate, there's signature, there's SV B. There's first Republican. There's Credit. Suisse and some of them are dead and some of them are murdered, right?
But clearly it's not a single thing. And we're over the new wsj dozens of banks.
May have listed somewhere somewhere sucking back. 186 Banks. May be prone to the nurse. Who knows? If it's 186, or if it's 333 or if it's, you know, like many or in this case, he's like, you know, I always say, says, most banks have like, what is the exact number of dead Banks? Who knows, okay. But what happened, after the SUV thing was found out is the Fed moved into because I think they were trying
Trying to figure, they're trying to hope that there would never be a bankrupt or something like SPF. No one would ever come looking for their money, right?
And just watch it real. Yeah. Real quick before before we get into what happened with the FED kind of stepping in what I want to also just call out very quickly. Is that a huge part of this was all of the stimulus, all the quantitative easing moment, bailouts all all of this stuff that happened between 2020 and it's called 2022. One of the key things that people focused on was inflation. The rise of prices that people
We're paying attention there but I had an aha, as I was reading your tweets and kind of looking at more of it is, like, guess we're all of that money ended up regardless of if an individual or a corporation had. It is it ended up in a bank. And so it was either browse it somewhere, right? It way I received a twelve hundred dollar check and I turn on. I give it to a business. That business puts it in a bank, as a deposit. And so the quote, unquote, Big Winners throughout 2020 and 2021 was the bank deposits growing at hundreds of percent, which
Then basically, now put them in a position where they had to figure out what do we do with all these new deposits. And that's really kind of what led to them buying these long-duration bonds because the zero interest rate environment, put them all at massive risk. And so we get to the failure best BB and maybe you can explain kind of what the fed and kind of other organizations are doing by
stepping in here.
Yeah. So so basically I mean it goes back even further, right? Because you know people have known like the u.s. is living on borrowed time for a long time you know that it's being printing so much money it said like it's the zombie economy for a while, right? You know bailout of GM bailout, this write all kinds of things, just got tons of money to stay afloat and you have, for example, like the Marvel reruns, you know, all the type of stuff.
75, 80 year old presidents you know all of that stuff, right? So you can you can pull it back to the pandemic. You can pull it back to the financial crisis. You can pull it back, probably further than that, you know, and there's probably steps that people could have taken at any one given moment, but specifically with the pandemic. Yeah, you're correct that huge amounts of money, sloshed on to the balance sheet of banks. They had to do something with it. Everybody else also had lots of money. They weren't taking out loans. So the banks also did think maybe,
Ation is going to come, but they knew the Fed was denying that they were going to hike raids. So they're like, okay, fine. We're going to just instead by these crappy bonds, we've got now and get these ten years and then when Powell hydrates so fast so quickly. Nobody could find a counter party for their huge, born for Bound for flu, because they're all in the same boat and same time because expressing a different opinions. All these Lemmings just went off the cliff and everybody was just hoping that the FED would eventually pivot, right? And now they have because
Rescue be they decided, okay, rather than having people just go in withdraw, you know, their money and cause a bank run. No, instead, we're going to just print money behind every depositor, F, fed D, IC Insurance. Okay. And so, now, the game now it's never an end game, okay? Because now what they have done with that is, is, it's a stealth monetization of the debt, all the all the debts that they, oh, they have now just magic them away, and they don't want to call it that. But one of the clever things is that these
Bond holders.
Now, they are so happy to have their losses deleted by the FED that they're probably, not realizing that the amount of money injected into the system. Like, for example, you buy a billion dollar Bond, okay? You just lost, 15% on it, or something like that and the FED says, you know, I'm going to Value, so it's 850 million. Oh crap, the fences. You know what? I'm going to still value that a billion and was be tfp program, they're like the markdown didn't happen and they do something complicated, not exactly buying it some
Loan kind of thing. But the point of it though is that you got your, your billion and rather than your 850 million, you got that extra money, 250, you know, answer you're feeling happy at the time and I don't know, what the exact contracts are that they signed, but that bank that, you know, was killed by the fed and now saved by the FED is happy, but I wouldn't be surprised if they sign something that says. Oh, you can't accuse his of it, being a sovereign default.
But now, Tada, they have managed to get people to eat that Sovereign default. And now they just hope that, basically the level of inflation that's in the system where they just increase in money supply. So dramatically
is not something that's going to flow into Bitcoin.
And and like I know everything I'm saying, here just sounds like really complicated intricate and like hard to track or whatever. But the tldr is imagine if Sam brankwyn freed, he had these assets, you know, he he owed you a thousand Bitcoin. People came back and you only had four hundred Bitcoin and he had assets. He thought were worth 600 Bitcoin, he couldn't sell those to get 600 coin but then suddenly incomes government and issues him stuff over here, new Bitcoins.
And he could give them back that won't work for Bitcoin because you can't print Bitcoin. The 21 million limit is actually, it's such a simple but important hard constraint on the entire system, right? Whereas with the FED, they can swoop in behind the scenes and start printing dollars such that these guys can make good on their obligations, right? And that is what has happened. Where there's essentially like both domestic and international bailout down. By the way just to take temperature um, on a 1 to a 10, you know, she probably tweet this. Do you, are you aware or do you believe that a
Isis has happened.
I'm the wrong person to ask because I know that we not only are going to have a financial crisis. I know that we are in one and it is way more drastic than most people realize. Hence, wise, I'm spending so much time talking about this,
right? Exactly. That's right. So, this is the stealth financial crisis. That's actually why see? Because nyt, and others, they're all pointing your attention and something else, they're not from paging this intentionally because they don't want you to panic. Don't panic.
Panic whatever you do. You know like remember FTX is fine, assets are fine, right? That's exactly what's happening on Treasury and and you know, fed have statements out saying we're solvent money is there, don't worry. You know all banks are good full faith and credit blah blah blah. And of course when you have to put that same amount that's obviously when things aren't going to it.
You know. So what I again the simple version of what I think happens there could be a lot of twists and turns is it's really going to be one of two things first. Lots of there's all kinds of chaotic, Printing and Bank runs and so on in the weeks to come as worry, depositors check on their funds. And the Big Branch point is whether they wire it to Big Banks or they turn into Bitcoin.
And that determines basically where they're literally, like, whether Freedom lives as funny as that sounds, okay? Because if everybody wires to Big Banks then and they think, oh my God, the FED saved us, the big Banks saved us and all the small Banks and all the tech Banks and so on die. Well, the FED now CBC which they chose by the way to announce, even in the middle of this crisis, okay? They announced on March 15. It's going to come out in July, okay?
Then, all the money is trapped all the big Banks.
And then in July you only have like four Banks, left or whatever it is. The CBC is rolled out and too-big-to-fail becomes like too big to escape. You literally can't spend your money without government approval on anything. Oh, you want to buy that BB? Nope, that guy is bad. That person, you can very fine grain pulling of every single transaction anybody's ever done. You can't exit the system. It is like it becomes, like you go from a free person to having Monopoly points on somebody's computer. It's
In more than, I mean, the FED system has become more like that even you know, right. And whoever they don't like they delete them and ever they like they add them and the whole CDC basically makes all kinds of monkeying around with individual people's balances much easier to do, right? And that is what China certainly do, right? So anybody who's politically unfavorable to the regime, they freeze. They could seize. They can spy. They can do whatever, right? And it was really terrible. They just direct deposit. Somebody else's money and nobody can see it, right?
So, you know, it and then, of course, it can cut off. Interconvert, ability into cryptocurrency is, won't let somebody buyer or seller for that or at least not without without, knowing about it. And you can imagine maybe OTC trades where the second part of that, you know, like the the BTC part of it isn't shown. But they won't like it, right? So, so the current path before setting up the bit signal with something where and again, how intentional is it forces? How emergent I don't know. But the current path was
Was that the FED causes this crisis bankruptcy? All the bank's, you know, one of them has a bank road, instead roles in there, both arsonist and firefighter that somehow, they know exactly what's about to happen, right? FDIC rolled in real, they're real professionals. Right? Actually they they knew the bank there thing was insolvent, right. And
Then what happened was?
That with all these small Banks, detect, Banks, Community Banks, going down and all the money pinned at the Central Bank are at the big Banks. The CDC roll up because very simple. You just have four Banks and really all the same and now you don't have any choice and the alternative. That though is if people buy Bitcoin, that is literally the exit from the system. It is something that they cannot control. They cannot edit the entries on that. Ledger's, that the whole point. Is this Bulletproof.
Centralized Ledger and the trio Million number. They can't corrupt it and they can't censor it. And this whole thing everything that we've ever talked about here, you know, you and me for 10 years under. And you know what's funny is I am not a neither of us, I don't think, you know, I'm not a Bitcoin maximalist but we're all going to be Bitcoin maximalist now. Okay, what I mean by that is
The Bitcoin maximalist philosophy. And again I recognize that many of its exponents and so on are like insane and it's all true, but unfortunately, you're going to kind of need and seeing people for what is about to happen, Okay? Their worldview is the closest, most people will start people don't have any idea of what's coming, okay? The Bitcoin maximalist are may be the only people on Earth who are prepared for the potential Sovereign, default of the US dollar and the rise of Bitcoin and the concert of hyper Bitcoin ization, where the reserve currency
Currency switches over to be TC and all Fiat around the world like basically, collapses relative to the hardest money around, right? And basically, what the what the US has done with the FED has done, is its cause the Fiat crisis, it's not really just a banking crisis to Fiat crisis, because the crisis of having everything. Centralized in one place in the mall, screwing it up in the same way at the same time and lying to everybody. We uncheck couple things every single thing that the most intense Bitcoin maximalist would say. You know, for example, I posted that meme
Of, you know, you could sell your Bitcoin for Millions. Someday is like, Neo when you're ready, you won't have to write because like selling for trillion Zimbabwe dollars, right? So hyper bit quantization, which is the simultaneous rise of Bitcoin and transition to reserve. Currency in the crash or the Fiats against it is going to be a huge mess because I think it's going to come much faster than people think because with all this printing money, we've got about three months before this CDC gets out there where you're still a free man, you know and you might
Be able to wire it out and you might be able to turn some of it into BTC and hold that locally. And that is basically the way like that is a way that we might preserve some degree of freedom on their side of this because either it's a go ahead. I know that sounds see I don't normally talk like this right
there. Literally, I know you don't, that's why I want to talk about this. So I think a key question and I should blame you because once you put out this bit signal, I have somehow become half spokesperson for Balaji. I literally have gone on podcast. They're asking me. What is velocity?
You doing. I have no clothes so I figured you could explain for yourself, but the other thing is in private. There's people who I think follow your work and they're like, look blotchy, usually doesn't have this type of language bossing usually isn't, you know, this public in terms of some of the things that he believes and so that makes them pay attention. When you made the bet the 1 million dollar bitcoin price in 90 days, help unpack in that bed, are you saying hyperinflation in the United States? Or are you saying,
Know whether hyperinflation Allure not, people are going to start to exit and therefore they are going to buy Bitcoin and it will push the price to a million dollars in 90-day period. Like, how do you think about? Let's go through kind of if your vision of what is about to happen occurs. What does that world look like over the next 90 days?
What I think is either. So the reason I did the BET was to get people to the Bitcoin Lifeboat, buy Bitcoin get your keys off changes get to a Bitcoin friendly jurisdiction. That is the message buy Bitcoin get your keys off changes, get to become friendly jurisdiction. Everything else I say is a rationale for that, right? But that's what the message I'm getting out there is I'm basically burning money to do this. It is not something that I mean, the thing is I believe in Bitcoin but I also believe in the public good and that's going to be something that's in short supply and
Follows. If what I'm saying is correct and I believe it is that the central banks and the end like the US government has betrayed people on this level, right? Such that they just blew up huge amounts of people savings. Okay. And you couldn't even trust the banks. I mean, like, obviously you knew you can trust the bank's quote, unquote in 2008, but the degree to which, you know, it's like the South Park episode, you know, hey bubble, it's gone, right? You know that thing right. That's that's what we were talking about or or like, you know, South American kind of Bank you trust.
South American bank. Now maybe in this Century you do you know the flipping just like it was from like Russia to China. Like China is now the senior partner or from Britain to India. India's antecedent part is quite possible that in this Century it's like this is South America's time to shine because they understand currency crisis, they understand the value of Bitcoin El Salvador, you knows model is now saying that you could export over, you know South America, you could have, you know who knows what happens in what follows, actually think the Kelly becomes a pretty important person in the world actually, they'll sound right?
When the richest country in the world, with all the Bitcoin, they've got if this happens. Okay, but but basically, what I did was most people were not this financial crisis was creeping up like a, like a panther or like a, like, a cloud enveloping people, they weren't even aware of. It was just invested so much in stealth mode that whether, you know, people are just sleepwalking. It just wasn't a topic of conversation and so on. Now, this is something that's cut through the noise and everybody.
Is aware that there is a financial crisis on and that the banks don't have your money at the money is gone, right? And that you should probably exchange some of them to bitcoin and you do that sooner rather than later, because you don't know we all don't know. It's just hard to predict timing on anything, but they have announced in July launched the CBC and a feels like as good. A deadline is any, they've been killing the crypto rails, right? They killed signature. They killed Silver Gate.
The aren't that many ways out. And so what I wanted to do was say, get Bitcoin, get your friends or family to get Bitcoin, get your coins off exchanges and do that now because they might close the doors in my bar, the exit now, the thing is the good thing is, they won't be able to borrow it worldwide because the US doesn't have control over all banks worldwide anymore. There's like, UAE and Saudi and so on but they still do have control over quite a big chunk of it. And, you know, one way of thinking about it is, you know, I was born an American and I
I'm doing this because I actually love American values, you know, Paul Revere the printing is coming.
Right, the printing is coming. That's literally what we're talking about, right? The printing is coming, this is a you know another American Energy, this is a digital Pearl, Harbor on all dollar holders. The dollar holder is a bag holder. Okay. And I mean that literally, you know, it's funny is, you know, I the funny thing about this is I sound now. Like the most intense maximalist ever, right. I don't know what.
Yeah, you do. But the reason why I'm laughing is because what you're saying is actually very little
With Bitcoin, right? I guess you are basically looking at the traditional Financial system and you are saying, there are major problems here and I don't give a shit if you care about Bitcoin or you don't care about Bitcoin but you have to identify what the problems are and then make the decisions for yourself. Oh, by the way, I Balaji believe that Bitcoin is the best solution but some other people may go buy real estate or by whatever asset that they think is better. But first, you have to get them to identify the problem before they even begin to think about a potential
solution.
I know, but even then, I think, yes, the reason I'm saying Bitcoin and as I said, I'm A maximal is for now for the for like were digital wartime, right Bitcoin only and the reason is that real estate and other kinds of things like that, maybe Real Estate in Red States, I guess. But lots and lots of Fiat stuff is you know, what happened to the Russians or the Canadian truckers right there, stuff? Yes, there's just seized, right? So I have a feeling that as these Banks, all meltdown, right? The most trustworthy,
Twirly things out there. I mean your business checking account, isn't secure and if you want it back, that's a bailout, right? This kind of crazy stuff, which what it does, by the way, see a normal Predator when it walks up to you like, or it's running at you, it looks got fangs and sharp and you're like, oh and then you, you know, you fight back against and you have legitimate self-defense. Imagine a predator that like, could, you know, an astute eyes. You, you know, like a mosquito in a sense and it sucks your blood and you don't even know it's there, right?
That's kind of like these these Finance, Guys, these Bankers, who will take your money and tell you, you're bad for resisting, you know, they're like, you know, again, it's something where natural selection operates at many different levels. Obviously it operates at the level of the physical and visible kind of thing, but also operates at low of ideologies and even business practices, right? If if they had not adopted those kinds of things, then
They would be more easily spotted. Oh, yeah. Well this says, send all my money to so, and so place. Now, thank you very much, right? And so the funny thing is all kinds of maximalist, impulses, like distrusting contracts, distrusting you know, complicated things I want simple things like lots of those. Impulses are going to be good impulses in what follows you know like a minimum necessary complexity. We're basically the whole D financialization of this gigantic kind of thing. May happen.
Open actually really fast. As tons of banks go down and so on, and we'll see what happens. Right.
Talk a little Derrick talked a little bit about, yeah, talk a little bit about the speed at which this has happened previously. So, you know, for example, I know somebody who lived in a country where there was hyperinflation, it literally happened in 60 days, right? It went from everything's, yeah, I'm Kabam, hundreds of percent of inflation. Explain a little bit as to why you think this kind of combination of historical hyperinflation, and the speed at which it happens.
Combined with what I call the digital catastrophe. Write this kind of speed of information and action can then almost accelerate it even faster
pace.
That's right. So first is hyperinflation table, right? This. Look at the speed of this. This is hours to days, right? It's really, really really, really, really fast. Okay. Second is the digital bank run, right? So here is actually right. Social media-driven Bank Run killed Credit, Suisse 10 billion in a day. 12 deposit SUV collapse from asset sizes. 55 million Co blames Twitter right? Social media rumor. Okay so
So, so basically, digital Bank runs are they're not built for that. All Dodd-Frank assumes people come in and person, right? So the system isn't set up for something from this angle, right? So one is that I request you to is. Third is just look at, you know, some of these stocks. Right? First Republic Bank, your look, this was, this was like, pretty legit paying for a long time, seemingly, right? Um, look at that. Look at that. Is that?
That see it's continuous and it looked thought they were getting really rich and then dead.
Right. Everybody knew that this was fake, but it's like kind of accelerating your entire life and then ending it. That's the FED. Did you know? It's like, just just look at that. What that felt like going from that to that, right? That's the printing. And that's the, you know, rate hiking. And like, I'm not saying this is normal business cycle, but they went bananas and, you know, just, you know. So the thing is, that's First Republic. All right. Here is, you know, silicon?
A bank.
Right. Look at that again. It's continuous and let's just digital and debt at the end. Okay, here is the the so-called the so-called discount window.
Again, they make all this stuff, you know, give all these various names. So look at this, this looks like
there's nothing like you know there's like some little wrinkles and so on then vote that's 2008. This is Corona. Discount window is already just far beyond anything. There's a little bit of you know kind of thing. This is just does that look like a normal graph?
No, of course not. And also I think that there's another piece to this whole thesis that hasn't really been called out a lot, just like the central Bankers, learn to play book in 2008. They perfected it during coronavirus 2020 and now it's like they're in the big leagues And when they see that fat you know, fastball coming down the middle of the plate, they can swing with all their might. And so as you see in this chart here, hi there swinging, they just gave back a third of everything they sold off their balance sheet, in the year, having it back.
I literally one week half, I think it's
half.
Half of all the QT and one. Right? I does. This is the last screenshot, who knows? It said like, it's like five except by now, who knows, right. And they also, by the way, they, they lie like they breathe, right? Because, every single thing they say, you have to, like, translate fed speak where it's like, you know, they lie in certain ways, where if you're, you know, I'll give a great example like, okay, look at this, right? March 12th. We're only going to print 25 billion
Now it's two trillion. Four days later. How about that? And it's actually but it actually is is infinity.
Right. And so you know, this graph, no longer looks that crazy anymore relative to the discount window stuff, right? Like these, you know, they look the same and the thing is everybody's known that this was going to happen. One of the I think one of my contributions in all of this is reframing this as not like some Tech Guys thing or whatever. But as like the final, big debt crisis that Dahlia predicted, right. Everybody knew this would come.
Come but not exactly how and when, and the FED didn't have strategic surprise, but had tactical surprise. And again, whether it's intentional or emergent doesn't matter, right? Tldr is they are now doing that digital devaluation of the dollar. And so now what's going to happen I think is now the fire alarm has been wrong. Hopefully you have something where only dollar holders pay for the sins of the dollar, okay? So everybody because if think there's multiple
The officers blue tribe, red tribe, great tribe, like Skylock, Xander's foreign tribes, right? So hopefully everybody who doesn't fully trust the banks and the US government Hedges into Bitcoin to a greater and greater extent. And we'll see exactly how that manifests. And then they'll have like, you know, they'll print so much that probably prices of, you know, bread and other kinds of things will go up versus the dollar. And that's when, you know, things start to get pretty nasty, right?
But we'll see what happens. I mean, the big thing is, by the way, you go back and watch this video.
Dahlia has cartoons in there and he does that. It's very well done, but it means that you feel like it's something happening to people at a Faraway time in place. If people don't panic or freaked out or whatever, but then watch those and then replace those cartoons with the assets going to 0, and people being in Conflict. We'd like real photos in your head and it feels very different, you know? I mean like, no one cares. Say about the collapse of the Dutch or whatever, because I was hundreds of years ago, it's a different thing. When it's like happening to you, you know, let me pause her.
So I have a couple of questions that now that people understand, you know, how we got here, what the FED is doing, what you think will happen, kind of moving forward. Maybe the first place to start is you said this a couple of days ago. Now I have had people across Tech Finance Bitcoin, you know, crypto World, whatever, reach out to me and asked some version of is blotchy serious. What is he thinking? Do you agree with him? What percentage likelihood, do you think it is? Whatever.
From your standpoint. Have you had people from the traditional Financial World reach out to better, understand this? Or is it still an internet thing? And it's basically the community of people who know you from the Internet, or have you now started to have this narrative in this kind of idea seep into the traditional Financial world, where people are starting to pay
attention. So I'm aware that several large billionaires have started buying Bitcoins and I started like, like have they see the thing is this set of facts that I put together over here.
Is a like this is not crazy, right? This is a set of Highly. This is a well-documented essay with links graphs and charts that
Make sense. It tells a story that makes sense, that predicts but past I mean like that, that make sense of past events and predict future events and it puts all the pieces together as to what happened and why it happened and what's going to happen? And at least to a terrifying, conclusion, which is all the banks are dead and we're going to find out when Bank credit a time, like what, they've, what they've decided to do is to monetize the debt in the most chaotic Way by having it be first come first served. Okay, they print tons of money and all the banks have your
any, but the only person who has a purchasing power is a person who turns into Bitcoin first,
That's it, right? The person power is being eroded silently with this print, right? And because this is like the last print, you know, they've just they've monetize the debt. So insofar as they made a contribution it was that and to your question. Yes. I mean like there's zillion people who called and message or whatever. And all I've done is I've said you know the first thing they're like are you know some people actually the people who know me know that I'm not I've you know, you don't mean for, I don't know, five years, ten years, something something in that.
Range. Right? I'm not a John McAfee kind of guy, right? Just there's only one other time I've ever run the fire alarm and that would like on this level and that was early covid. And the reason I did that then was the same reason to now is because I took the hit of having being like, you know, execrated for weeks as a racist blah blah blah. Oh my God, you're such a racist. You're saying is coming from China. Like this kind of insane stuff, you know. Oh my God. You know you're so paranoid.
Look at the time by the way. And here's the thing by their about covid. Today in toy three people believe two things. Number one, China had a virus that leaked out of a lab that infected more than 700 million people, worldwide, and killed seven million of them sickening, tens of millions of others, and they covered it up and that's so terrible, and it's bad. True, of course, you know, NIH actually also funded China. So, like the u.s. is also involved, it's like this terrible kind of thing, rather gain-of-function, research all this.
And number two it wasn't that big a deal. Life went on K. Oh right now. The thing is I actually agree with both the statements but at the time in early 2020, if you go back and look at the number of deaths, it was growing exponentially like that and nobody's paying any attention to it. And is an empirical question that it managed to top out at about 7,000 deaths per day rather than like 70,000, right? So
You know, like if you go back and look at my tweeting, I basically stopped reading about it around the time. They started saying, oh, you know, race-related was a racism, is a real pandemic or something something, you know, insane like that right? Remember the riots. And so on once people just started going losing their minds, I did not treat about him or what I wanted to alert people to was, this is a real thing. The problem is that while the tech, you know, and of course, people will argue about this, uh, one thing I'll find is there's a lot of people
Who believe both at China's super you all for letting this leak out of lab and it's just the fluid wasn't a big deal. It was not just the flu, it just, it was a novel virus that killed a lot of people, right? We had, you know, I you can argue about which vaccines are good and, you know, so on I think probably what it is is that getting covid will bad, that a vaccine that gives some percentage of people similar effects to covid. It's as if they were infected with covid and it's at larger scale, that is my rough belief, right? So that it's probably better to get the vaccine that's ghetto, but I know,
The people will differ this in argue in this and said I'm not here to litigate that. What I am here to say is that the early stages of covid? I think that they're absolutely was something happening. And there were a lot of changes over going to happen and that's what I kind of flagged, right?
As for Nell, I think this is going to be something similar where this is something that the full consequences of lots of, you know, Western Banks being dead. Lots of money being printed and a CBC and a lot of consolidation and see if you see, I don't know exactly what they're going to be, but they could be even worse in some ways because if you have a CBC you just can't get your money out ever. Maybe right? Depending on how much level of control is you may not ever be able to get it out.
And if you can't ever get out, they might not let you buy a plane ticket, they meant. There's so many things that they would do to people who are politically disfavored without saying anything, that it would be pretty, pretty nasty, right? Anyway, let me pause there.
Alright, the next question, that a bunch of people when I told me we were going to do this, we're asking me is what is your best argument for why you're wrong? Or what is your best argument for, why the US dollar will not inflate away and it will continue to be the global
Reserve currency.
Best argument for so I actually don't think. All right, well, let's do a few butts my best argument for why I'm wrong. I think the best argument for why I'm wrong is probably that this will happen, but it will be over a longer time scale and won't be that fast. And this is not the final crisis but it's the precursor to the final crisis or the you know, the final crash will be in a few years or something. Right? Something about it. Feels different though and the reason it feels different is its consumer.
Facing crisis.
In the sense of all, the previous ones were Enterprise crises, you know, like just reading the news that Bankers were worried and anxious and sweating and so on, you don't have 40,000 companies in all of their employees. All at the same time, completely panicking that they that their entire life's work would go to 0 because, you know supposedly there are you know, like and is blamed on them, you know, like that you don't have something like that, right? That is something that causes a fundamental distrust in, the US banking system.
The Moody's downgraded, the banking system in many ways, America is already Argentina. Okay, now, so, why am I wrong? If I'm wrong, I'm wrong because it takes longer for inflation to propagate out that I think because I think now they have printed so much money that it's matter of time. But I want to be wrong in a sense because and I'll probably post this when I posted that like I hope I don't win, okay, in that sense because
What this is, is a way to call attention to this stealth financial crisis.
And you know it's like prepping, you know, it's like buying a gun or whatever you hope you don't have to use it.
but you better be prepared, because you might
You know, so buying Bitcoin and getting to a jurisdiction that is Bitcoin friendly. That has Texas GOP. As this thing shall not be infringed, right? The right to buy sell. Send receive Bitcoins shell and being French Mississippi. Montana they have right to mine bills. Tennessee, Wyoming have the Dow laws obviously, Florida. You know, is pro Bitcoin and I kind of think will happen is a potential dividing line in the not-too-distant. Future will be, will be states. That don't blue states. That don't allow individuals to hold Bitcoin. Only The Government Can like gun,
Bands, right? And red states that allow individuals to hold Bitcoin,
And I think that's going to be. Now, of course, I say Bitcoin, maybe it's lightning or something like that, you know, we all that is to be figured out, obviously transaction volumes all the stuff that's important.
And anyway, there's way more, I could say, but let me let me stop
there. So when you mention Bitcoin and kind of, you know, Second Amendment it makes me think of Jason Lowery and the thesis around like the softwar and basically Bitcoin being this projection of power. And something that the United States should go ahead and embrace given the existing financial situation. It is, it your recommendation that the Central Bank should immediately go buy Bitcoin
As a hedge against their own devaluation of the fiat currency, or do you think they would never ever, ever ever,
ever do that? Just these guys being with it, it's it, they have an economic theory that could not predict the existence of Bitcoin. And I mean really what that that's what this is is, do you trust Powell or Satoshi?
That's literally what this is, right. Hey, you know, people said, you know, the FED is more powerful than the president. And so on, if Bitcoin becomes the global Reserve currency, that is a changing of the order. It is a different. It is a different world after that, right? So they would never they would never, maybe, I don't know. I doubt it. I've never seen a central Banker that likes Bitcoin. This is some that understand it but they don't like it because it's the one thing that they can't manipulate on their keyboard. So one thing to can't seize or
Is there almost like a video game developer points here points there and so on. Except there's consequence in the real world. You know, you can make a game more interesting by adding certain points, but making people dance in the real world, you know, by just sloshing numbers around the spreadsheet, is, is not fun. Right? For the person who's having to dance, in such a way, like these people who are faked out by all rates are going to be lower. Interest rates are so high and they all just crash probably gigantic pile of bodies at the base of that Cliff, you know?
So, no, I think, you know, I haven't read Larry's thing. I saw it online. I think the basic issue by, with a lot of those guys who I like is that they just have a romantic image in their head. I mean, the thing is, you know, the thing, for my networks get book like God, State and network, it's like, yes, what is leviathan, right? What is the highest power? And a lot of philosophies actually reduced to, this, even unconsciously is the highest power almighty God. Is it the, you know, the military, the state, like the US military or the
These military if you're in China.
Or is it encryption?
All right, and the thing is that, I think a lot of people
Just still a project onto the current US Government. What it was as opposed to what it is, you know, it's like it's been silently corrupted in some ways, not that silent actually, but it has the same flag and it has the same. This, it's got, It's like a, you know, Sky legs are in talks about the skin suit wearer, right? Like something, kill something and wears its skin, you know, it's got the skin of the old America but the substance
This is like some Demon, that's inhabited it and you know that has gotten all the banks to tell you that, it's your fault. If the money is gone, right? And, you know, by the way, all these FDIC things, you know, like you used to have like small Bank bankruptcies, you can use to have like gigantic hundred billion dollar banks with no warning, go absolutely 20, right? That's new. That's like not, you know, that's it, 2008 crisis but that's not what like a well-run system is supposed to be is okay and
It's a simic thing, you know, probably by the way, one thing I think about, you know, it's, there's a Libertarian theory that I never got that into, but now I'm much more into it. And that's, you know, basically, the FED is serial killer, right? If you go back in time, probably, if you go and look at the mortgage crisis, you can find the Fingerprints of the fed and probably every every crisis you can find the Fingerprints of the FED, injecting all this variability and then everybody else dies in a bunch of bodies at the end of the cliff and the Fed.
It's playing their games interest rate up and straight down, and straight up and straight down pretending that injecting all this chaotic cyclicity and craziness in is adding value somehow when it's actually just Joy sticking you know, the system and they would never give up that control because it makes them feel important and how could we not help people or whatever, right? And the extra will have to be taken away, and that's a Bitcoins. All right? My
pleasure.
So another piece that I think people are interested in is the nation-state first. The state we just saw today. For the governor Ron DeSantis, he gave a press conference. He said that he is going to propose legislation to Outlaw the use of CBD sees in the State of Florida, both domestic and foreign put aside for a second whether he legally can do it or not so much in debate of that on Twitter. But this idea that like some of these states may not wait for federal guidance.
May actually go against the nation. Yes. Interest. How do you kind of balance that?
Well, so one thing I think I've got a ton of graphs on this but basically let me show some of these, right? So I've been tracking this for a while and what most people don't know is that the tenth amendment has basically been coming back. Okay. So in the sense that states breaking away from the feds
but as you are an
expert googler, am I? Yeah. Well, here we go. So
First of all, see it's already been breaking away from the feds you know, right of the people to own hold and use you know, shall not be infringed right and. All right. So states are setting their own Sanctuary, Sanctuary state laws. These have been going on for a long time and some of them are to left and some are to the right of the federal government, right? And you know, here marijuana laws, okay? They differ gun laws.
Abortion laws, right? All of that stuff, differs quite a bit from state to state and it's getting more, so, right. And the thing about this is, you know, here is, you know, Wyoming legal doll, recognition cholera first each except crypto for taxes my encrypted Capital. The world. Like crypto is a political issue and states will literally split on crypto as to whether they are Fiat state or a crypto State. Like that's like a fundamental difference. In fact, actually think
In what comes after this, after the Fiat crisis, I think you're going to see a lot of the Fiat economy, all the derivatives. And so a lot of that just melts down, you know, basically just chill poof and I don't know who gets what money and you have essentially Fiat States maximal, Estates where it's Bitcoin only and then crypto states which have you know Bitcoin plus right but all three of them will value Bitcoin and we'll all like fight over it and then the question is whether Bitcoin itself ceases
Gold. I mean gold will also be valuable in that world but as like a state-to-state thing because itself then is going to actually be under, you know, the serious stress test and we'll see what happens. Go ahead you can say,
no, my I think my last question for you is when you look at this entire situation playing out,
You're raising the alarm, your kind of sounding the alarm. You put the B signal up. You've got people from all walks of life that are starting to pay attention to it.
If you had to guess. Now, 90 days a year out whatever, kind of timeframe you want, how many people do you actually think we'll
listen?
I don't know, but I do know that at least, I feel that I did my duty to warn innocent Americans, that I know there's a tradition on both the American left and right, but being suspicious of the American government, right? Where it's on the left when it's coin, tail Pro and all these people wiretapping and so on if it's on the right you know when it's like don't tread on me libertarianism right? There's a healthy suspicion of the state and both left and Lite-Brite Libertarians are within
kind of our crypto community.
and that's a strain of, you know, americanisms been there for a long time and so, you know, essentially I think of it as
You know, there's basically four options, right? One is you just go back to sleep, watch Tick-Tock don't do anything. Okay.
To is.
You, this is a false door. You, why are you all your money to a big bank? Now you think you're safe 5% interest? Great. A lot of people will fall through the store because they just don't get it. Then the Trap shuts in like July or whenever the CBC and then they cannot withdraw their money and they're stuck there, like I trusted them know, right? And that's, you know, right? Then third you get to bitcoin at least sell them your hedged right, your hedge into Bitcoin.
But fourth, you want to also be in a Bitcoin friendly jurisdiction because otherwise you're going to have problems being in a having Bitcoin when everybody else doesn't right? And so I don't know what, like all the people where they land at one, two, three, and four.
So okay that's fair. See
what I lied actually. Have one more question for you. Sure of course. What is the one? What is the one thing that you're looking for? Moving forward? What is the Milestone? What is the data point? What is the thing that you'll be like yes this thesis is on track. If you see it happens, it more Banks failing is it you know more QE balance sheet expansion. Like what are you looking at?
Well the thing is the way they are doing this. Printing, the question is whether or not we actually see with the day of managed to get it to the system, to the point that people are scared about whether their money's in the bank and they printed to make sure that if you come and do a bank run and you move your money that you still have it. So the the fundamental thing would be I mean certainly the Bitcoin price going up. Would you know? We'll see when if and when it starts moving right and maybe people need to get their wires to exchanges or
Or something like that. But finally, it's going to be individuals and then it's going to be firms. And then it's going to be
You know, like funds and then eventually, it'll be. I think small sovereigns like naive, but Kelly and Jack Dorsey, getting involved would be pretty important because they also have a pretty big megaphone and whatnot. And there's a feedback effect because more the price of Bitcoin goes up. And it's now shown the true decoupling. If you saw that, right? It's finally decoupled from all the other assets. So, and we're talking about people moving huge amounts of money at once.
Right. They're moving. They're like entire bank accounts, right? Those are large purchases and a large percentage. I'm not saying, you know, obviously depends on each person and what their percentages. And so,
You know, you obviously need to pay your bills and Fiat don't, you know, don't invest something foolish or what have you but it's it's something where you just hedge hedge, what you can. And again, it's not about like making money. It is about not losing money about saving money. It's just it's the flip of what people, you know, how people think about these markets. It's it is, it actually is much closer to the Maximus world, you know. So anyway, let me pause there.
Well, I see, I appreciate you doing this. I know that you and I both are exhausted and probably gonna fall asleep as soon as we hang up. So I appreciate you taking the time to do this. I think there's a lot of people are very interested in your views and if anyone is not following you on Twitter, they absolutely should. And would have to do is get a
future, all right? Thank you sir.
