The Great Liquidity Reset | Simon Dixon Hard Talk LIVE

Hey, hey, sovereign wealth builders. Simon Dixon here and welcome to another episode of Simon Dixon Hard Talk Live. Today we're going to be discussing the great liquidity reset. Um, and by that I mean that obviously we're having all of the knock-on effects around the global markets as a result of the closure of the Strait of Hormuz. And now we're starting to see where in the world the liquidity issues are starting to take effect and which markets they're starting to impact. So, we're going to be going through all of that today.

As always, we're going to be breaking this down into two parts. I'm on the move at the moment. Um, look out for a podcast interview I did on Impact Theory, um, which is going to be coming out very soon as well. Um, I've been doing a bit of recording at the same time. Um but in part one right now I'm going to be going through the situation in India, the Indian gold crisis. Um we did some content on Bitcoin insurance and the Strait of Hormuz um earlier this week. We'll do a quick recap and the multipolar energy reset that we're going through. We're going to be looking at the monetary flows all around the world. What's happening in China, Hong Kong, and different regions, UAE, and putting it all together, India, America, the different companies. Um, and then in part two, we're going to be transitioning over to an interview I did um with Danny from Capital Cosm. And the topic was why they're um pushing the build out of 5,000 AI data centers as well as an update in real time from the Putin and Xi meeting and the AI bubble and what it means and how we're going to be timing that as well. We're going to be putting all of that together.

So, um we've got the initial part one that we're going to be jumping into. And so let's take a little bit of recap of the the sequence that we've seen over the last few weeks. So about 3 weeks ago, we had Iran's prime minister um Arachi um who was visiting China. Um after that, we had him going straight from meeting China to a meeting in Russia. After that, we had Trump going to China, which was the scheduled meeting that was put off from an April meeting over to the May meeting. Um, and uh, Trump's meeting with Xi Jinping, which we covered in detail last week. Um, and many people thought it was uneventful, but a lot has happened since then. We've seen a lot of passage happening through the Strait of Hormuz. And so to me, uh, we went through the monetary flows, the different people that were on there, and you can catch up with that from last week if you didn't watch it. Uh, but a few days after Trump leaves, then Putin arrives in China. Um, and Russia and China follow up by announcing approximately 40 trade deals, which were primarily focused on multipolarity as well as energy flows between Russia and China. and the progress report on the deal that was signed for Power of Siberia 2 um which is a LNG pipeline um which they're currently building out and it will take uh more time but really everything was around the long-term thesis that we've been talking about for years now on uh Simon Dixon Hard Talk Live that this was multipolarity and that the closure of the Strait of Hormuz is effectively a mechanism for doing the global reset, outpricing many people, renegotiating all contracts. Um, and in my estimation, if you're a long-term follower, you will know um that while we might not get the timing right, I've been a little bit off on the timing, but I think everything has gone in line with the predictions. Um, no matter what the media is saying, by following the money and following the markets, you get the truth no matter what people are saying. And by my estimation when we were leading up to this we knew that even before Venezuela that China for you know this has been a multi-presidency operation and that China knew this was coming and therefore was loading up, was moving shipments, um was rebuilding infrastructure. The Gulf countries were signing investment agreements in Texas. Uh, there were new pathways that were being set up all in line and the national security document before this said in the US that there was preparation for the closure of the Strait of Hormuz. It was closed by Iran making an announcement and then the insurance companies not providing the insurance and then we had the blockade on the blockade from the US. To me this implicates different factions of power. I'm not going to repeat it. uh I released a blog where I went through my analysis week by week um for the different nine um weeks where I was analyzing uh the Iran war and getting people weeks ahead. Now obviously as I said the timing is the hardest part um but as more becomes comes to surface I was analyzing in real time what I think it means. Now every deal I've ever been involved with whether it be mergers and acquisitions, whether it be public offerings, whether it be settlements, whether it be letters of intent, memorandum of understanding, over the decades in business or investment banking, I've been through many of them. They always take longer um than originally thought and there's always posturing in order to move the deal in the direction which is exactly what I think is going on. People are hanging on every word. Markets are moving, lots of manipulation's happening but directionally nothing stops this trade. We're moving in that direction and the reason is is because I believe all OPEC members, China, Iran, UAE, BRICS members, um Russia, Saudi Arabia, Qatar, um and Western big oil companies, um whether it be oil and liquefied natural gas, um they were all prepared and this has been a record profit opportunity at these higher prices and force majeure contracts and and renegotiations that are going to reset the world order. And this becomes the closure of the Strait of Hormuz becomes to the US empire what the um what the Egyptians did to the British Empire with the um privatization and Britain not being able to defend the Suez Canal in Egypt. And we we've been seeing that as this moment and as a result of that um they you know there was there was many indications that world leaders and world powers and global finance and big LNG knew that the Strait was going to be closed and I think they are trying to close certain contracts. Uh, they're buying time in order to do that but nothing stops this trade. The Strait is going to be opened under a new structure that will change the way all countries that weren't involved manage their relationship between China, between um the Gulf countries, between Iran, between Russia, between BRICS countries, between Western companies, uh because the West is controlled by companies rather than governments. Um, and also um I think it needs to be timed with the AI arms race and bubble. Now I know some people will say uh you've moved the goalposts slightly because I said that I thought a long time ago that the meeting with Xi Jinping would make the defining moment. I still think I'm correct just because you don't get an announcement. Remember meetings are not where you go and negotiate. Meetings is where you posture and signal what you want the world to see. The negotiations happen for long term. These take a long time, lots of lawyers, lots of long um drawn out agreements, lots of disagreements, lots of other parties that need to be involved. They take an incredible amount of time. So, these things are set up. They don't just suddenly go to a meeting, sit around the table, and negotiate it. That's when you've already done the deal or you're checking in in order to get some of the terms closer. Um, and then things happen afterwards as a result because that's just the posturing phase. Um, so what I think they're doing right now um is we already saw big movements um after uh the China meeting but now I think the movements are lining up with the very large liquidity needs of the big AI IPOs um and the there's market pumps um there's lots of uh major deal making um that needs to be done and there's lots of announcements and they need to get these are the biggest um initial public offerings or flotations on the stock market in history. We got three of them. We've got Anthropic, we got SpaceX, um and we've got um OpenAI as well. Um, there's been a lot of secondary market private dealing. Um, and the valuations are being set and this could go one, you know, either way. It could be like a Facebook IPO where it's a buy the rumor, sell the news type event. But there are very key strategic players that have a lot of exposure to these uh the success of these initial public offerings. Um, and so we're going to be going through that and what that means and which countries they're connected to and how we might be able to connect the dots to speculate on some of the things. So the IPOs might be the biggest thing since sliced bread. So they need massive liquidity. Goldman Sachs got the contracts before Goldman Sachs announced it. I put out a tweet that if I were Goldman Sachs, I'd be and I were getting these IPOs, I'd try and maximize the valuation. Now, we might get a Facebook IPO where it kind of sell the rumor, you know, buy buy the rumor, sell the news type of event and there's a big correction or this may be a big pump and I think they're trying to uh line up for a big pump and there's a lot of things happening here at these record valuations. Even things like the indexes are changing the rules just to specifically include SpaceX in the index fund from day one. Now, I've talked a lot about how ETFs and index funds are kind of like the new currency war. Uh, you can the financial industrial complex exerts influence over a country by managing the flows of capital into an ETF and BlackRock does that um using their Aladdin AI technology, which is a negotiation tool that is used in this multipolar world as um these different financial centers are being set up to hedge away from the centralization risk that's happening within the American markets at the moment.

So a lot of the public um escalations and the posturing and Iran saying there will never be a deal, that's more for public consumption. Um, many people said that right at the beginning, I said a deal will be done. This is a negotiation that started, those negotiations were happening before the war, during the war, and will continue after the war. In fact, the wars were part of the negotiations in my estimations as well. Um, which is why I talked about that Trump would be elected before Trump got elected because he will take us to war with Iran. Um, I thought the tariff policies were moving everything in that direction. Um, and so I didn't think there would need to be a war. Then the 12-day war happened. And when the 12-day war happened, um that was about moving the negotiations forward, destroying critical infrastructure, renegotiating rebuild contracts, um and resetting certain relationships that I believe was very, um coordinated in nature in order to manage this transition. Then I thought this would happen again, but I didn't realize it would be this big. and we would do two years of work condensed into what is now about three months. Um, but it looks more like Iran posturing, America, you know, Trump looking like, oh, he's an idiot, Israel looking like they're in control. Um, and we're starting to see shifts in that narrative. There was some public talk by um, Trump saying he should be president of Israel um, and he's got a 99% popularity rate. Um, you know, these types of posturing um are designed to confuse people into the reality that Israel previously was aligned with the military-industrial complex and is now providing utility to the financial industrial complex by giving these wartime stimulus to the US stock market where they get the justification to increase the budget from a trillion and a trillion and a half. Um, and uh Israel is, you know, changing their role um because they're going to be integrated and pushed into the Gulf countries. Um, the stock market is reflecting mass privatizations which removes state power. Um, so that the financial industrial complex can take over with their partnerships with Gulf funds based upon China funding. Um, and in that process Iran will be pushed deeper into China. Um, and then we take away the constructs of the petrodollar, which is OPEC and replace it, which is, you know, located in Europe out of Vienna, um and was the half of the petrodollar that led to people purchasing US Treasuries and you replace that with a BRICS aligned energy agreement and we got an announcement from UAE even saying even though we're leaving OPEC, um we're still going to be coordinating. Um, and there were agreements signed with BRICS members as well. Um, so this is all posturing to satisfy the domestic audience. Remember what I said? You need a three-way victory. You need something that Israel can say that then leads to a political process and regime change um with a new GCC aligned president of Israel or leadership in Israel. Um, that will be working with the FIC sovereign world funds um to privatize Israel and um have it lined up for acquisition and integration. Um, then you need IRGC um preservation but uh a leadership that has an acceptable narrative that doesn't lead to unrest um and destabilizing the region so you can transition to regional stability in line with China's plan that involved the normalization between Iran um and Saudi and the Gulf countries, which I believe you will see. Even I know everyone um talks and I talked about the monetary flows and the relationship between Iran and UAE and UAE and Saudi when they are connected through financial rails, um but they need managed transitions um in order to uh, you know, you move to uh these new contracts and and energy routes and everything. Eventually, I believe that Iran will be integrated through energy into the GCC corridor, normalized via China, and the Middle East will become West Asia where rather than the military having forever war models via Israel, it will be financial integration, regional stability contracts that the that the banks and financial institutions can use in order to switch the world to multipolarity. Um, and so the audience um so this is for domestic um consumption on all sides and then US um is exerting a little bit of Trump showing um control but inflation will go through the roof and he gets to say we're making America great again because we got all the energy, we're fine when really that is wealth transfer from the American people, massive increase in the debt stress in the bond market, but the stock market's look great um because you got all this AI build out, you got all of this energy being sold. So, it's a massive wealth transfer from Main Street to Wall Street. Um, and then you can stimulate the market with make FIC and TICK financial contracts, military um expenses, and technology build out for AI, robotics, um police and surveillance state grids, um as well.

So, meanwhile, what did we see this week? There were significant increases in shipments um that were going through. Most of them were going to China um and so clearly there was a change as a result of that check-in in Beijing rather than a negotiation. I like to call it a check-in because I think this has been a long time in the coming. But shipments are clearly moving at an accelerated and managed rate. Um, and then we got the opening up of the Bitcoin insurance service that I covered in an interview with Sulom Ahmed. You can go to my blog or YouTube channel and check that out. I went into uh intricate details in terms of the Bitcoin economy that's being built up in Iran and what that actually means. Um, but the Chinese meetings um looked more like uh, you know, strategic check-ins as it were um rather than and and then there's been a series of coordinated announcements where everyone's going to maintain their narrative that I believe ends in a deal. We'll see how long it takes, whether there's an escalate to deescalate event. I think the attempts at the final Hollywood movie failed um because there was resistance from higher levels of factions within the IRGC um and maybe some false flags on the um Israeli side in order to tip the negotiations. Um, but nothing that I don't think that I think has derailed the end result. Nothing stops his train in the end. Um, and so Trump's meeting with Xi, I think, um, you know, was really a a check-in towards that. It really asserted, as I covered last week, um, China as a rising new power, um, and the US empire as a bit of a radical, uh, falling power that's going to be shrinking into a regional power as we have been predicting long term as well. Uh, then we had Putin arrive um and uh in China um and immediately that's followed up by movements in energy contracts, movements in trades that have been set here, um liquidity narratives, um all started to begin and we started to see that there was stress in the bond market as I said, whenever the 30-year Treasury on US bonds goes above 5%, that's when we get radical changes and when in the case of 4 and a half percent in the US, that's stress. Now we have been consistently above that for about a week now and so that is a change in terms of what that means and immediately there was an announcement, we don't, you know, we've done a deal, a deal is imminent, oil prices correcting, a little bit of a correction in the bond markets, but the bond market is not, is getting ready for what I think the next phase is, which is stress in order to justify the big print. And I think that needs to align with the IPOs and the liquidity that's being pumped into these new ginormous AI trillion-dollar IPOs. As I said earlier, the the the indexes are changing the rules saying if you're above a trillion dollars, then you can be included in an index from day one. Now, indexes are very important. That's where you get the passive flows because everyone's contributing to their pension every month. You hand it over to BlackRock. BlackRock puts it in ETFs and you get a structural bid that's deviating the market. The market in the stock market is now only three things: money printing, access to index, and the index has become the new market god. Um, and then control over media narratives like, you know, the China AI arms race that we must win. Um, and so those three things are driving markets. It's no longer based upon revenue or anything, although Nvidia produced their earnings report and they are doing astronomical numbers in terms of selling these AI chips in this bubble. Um, in fact, they're doing to attract every type of investor, they announced that they're going to be paying a 25 cent dividend up from 1 cent. Um, so that now attracts all the dividend investors and also they're going to be doing a share buyback, an $85 billion share buyback, which is for the growth investors to put to pump up the price. Um, and so they are trying to attract every type of investor leading into this. And now the share of artificial intelligence um in the S&P 500 is approaching like 18 to 20% now. Um, we're approaching 50% tech dominance um in the entire market as well. Uh, so we're, we're starting to see all these narratives align into where I think this is going next and what I covered in the Capital interview, which was an interview in real time as the Putin Xi Jinping meeting was happening. Um, but it feels like they are trying to um, you know, syndicate these geopolitical announcements um with the market liquidity events um and the capital raises, which kind of aligns with my my, you know, model that the financial industrial complex rules politics, rules governments, rules markets, um, and rules, uh, the other major MIC and FIC and deep state sectors as well. Um, and so the world has already been divided up as a result of this. Um, and so those spheres of influence um that led to a sequence of events and this multipolar world um that's coordinated by FIC required a FIC-aligned president like Trump. Um, and we've seen that with the wealth transfer from Main Street over to Wall Street um and the K-shaped economy really accelerating to its extremes. The rich getting extremely richer and the poor getting extremely poorer and the middle class having to sell their assets as a result of these inflation and repricing events as well. To transfer all that wealth upwards into a smaller and smaller multinational. Now we got companies like Nvidia that are valued at $6 trillion. We're probably going to have our $10 trillion valued company into this um massive fiscal dominance-led pump into propping up the economy and creating GDP no matter what whatever it means to the people. We need higher GDP numbers, higher stock numbers and that we sacrifice the dollar as world reserve currency and we increase the debt at an exponential rate and when people start selling those higher yields call a bit of a doom loop, which is the liquidity crisis that we're experiencing and they're trying to push it, push it, push it um to its extreme right now. Um, so anyway energy shipments um are now, you know, going through the Strait of Hormuz. It's an accelerated but managed rate um which cooled down the bond markets a little bit into that stress um and also cooled down oil prices. But energy is starting to move and normalize around these prices and we're starting to see stress in the Southeast Asian markets, the European markets and we'll go through um some of those as well. Um, we've had new security agreements. We started to see Pakistan deploy um, you know, you know, troops to uh Saudi Arabia, all those alternative domestic security contracts um as a result of these changes and we started to see shipping lanes being negotiated and the construction of alternative routes. So the Strait will never be the same again. There will always be a premium as a result of this event. It will take a long time and many countries will um sign new rebuild deals. Those rebuild deals will be funded by the Gulf countries, by China's Belt and Road Initiative and the financial industrial complex, BlackRock, State Street, Vanguard, um as well. And those are the ones that are benefiting from everything. Um, as a result of this, um, reserve currencies, we're having this, um, you know, we're really, we're seeing central banks still accumulating gold at a record rate. We're seeing currency wars in order to force countries like Turkey to sell their gold and then it transfers over to Shanghai. Um, and uh, we're we're seeing um those commodity and currency changes and a movement away from gold in London to gold in Shanghai via UAE and Hong Kong. And so those commodity flows are really repricing and changing. Um, the weaknesses are really showing out and that's leading to bankruptcies in small business and M&A activities up to the large multinational corporations. So everything is being reorganized in real time. Um, and this will be the biggest event of our lifetime in history. Um, in terms of the implications and what comes after this, um, so you just pay the higher prices as an individual, which is why I've always said the strategy is you can't earn, save in fiat currencies. You got to be owning assets, otherwise your savings are getting wrecked in real time as a result of this because wages are not catching up with inflation and therefore, um, this is the the silent depression um of the K-shaped economy.

So let's see some of the things that actually um happened this week. So UAE um announced that a new pipeline designed to bypass the Strait of Hormuz um is already 50% complete. So we're already seeing these new um bypasses um that are announced into negotiations as well. So this doesn't last forever, but there will be massive um crisis implications in between. Um, US oil refiners are producing more jet fuel um than ever before. Uh, but there still are shortages. So, we saw the bankruptcy of Discount Airlines. Um, and but that helps uh the private jets. So, again, building everything for the K-shaped economy. Um, US refiners are producing roughly 250,000 more barrels of jet fuel. Now remember that's not the US, that's the select group of companies that benefit from this while you pay the higher jet fuel prices. And so you're transferring your wealth over to a few companies. Um, and that's creating a higher GDP print that that makes the economy look great while the economy is getting more and more concentrated and centralized. Um, and the stock market revenue is is pumped in um into, but then you get the inflation. Now what have we got in our prints? Inflation CPI printed in the US at 3.8%. But PPI producer price index, which leads consumer price index, what the consumer pays, producer is what the business pays for their import production inputs, that's at 6%. And so there's no chance of getting that interest rate cut. Which means that we need to prepare for interest hiking cycles. And those interest hiking cycles is why the bond market is pricing in more and more inflation. Um, and the new regime change at the Fed is just changing the index of how they measure inflation to try and obfuscate some of that as well. Um, but um more barrels of jet fuel um per day are being produced than a year ago. So um the production's going up and yet the prices are going up as well. So supply and demand is completely off kilter. Um, the Strait disruption has cut off roughly 400,000 barrels of aviation fuel um per day while the US producers have increased 250,000. So that's the whole, you know, setting up the spheres of influence. Um, now India is looking like it's going to be the largest loser as a result of this. Um, and no surprise there, that's because China was prepared for everything. And so in the multipolar world, BRICS, India is the country that I believe the financial industrial complex FIC has been trying to penetrate, which requires stress in the market so that you can do more deals. At the same time, India has been purchasing more and more of the UAE, of the Israeli infrastructure, the strategic port routes. Um, and Iran has been destroying the locations that allow those routes to happen. Um, Israel has also been destroying the Lebanese infrastructure that allows these routes to happen. Um, and these different corridors, they all require um, you know, these different IMEC corridors and various other things, these, you know, this is what's being rebuilt and renegotiated, but India is China's biggest, you know, kind of competitor in BRICS and so they're becoming a bit of the collateral damage in this story. To do to to combat that and to look at some of the flows that are happening right now, President President Modi in India is asking its civilians, this was a week or so ago, to stop buying gold in order to save the currency. So their currency has been getting um lots of outflows where people are selling the Indian rupee for gold, which has always been what India does, but that's been at an accelerating um pace. And so India um at this moment cannot defend the rupee indefinitely. Um, it is trying to defend it and one of the tactics it used is in the interest of national security, can you please stop buying gold with the currency? Reminds you of those, you know, 1933 moments when in the interest of national security, all Americans had to hand in their gold in exchange for a Federal Reserve note. I'm not sure if we're starting to get any closer to that. There are different, there's normally an escalation cycle towards something like that. Um, and that would certainly create a civil unrest event with the amount of individual gold ownership in India um and their reaction. So I don't think we'll be getting towards that, but we seem to be um moving towards, you know, when basically if an Indian household, they buy their gold, they tend to pay with Indian rupees. And so if you're buying gold, you're selling Indian rupees because at some point in the line, India needed to get that gold and so the wholesaler or the jewelry company or the gold bar company, they would have bought that gold on the global market and that would normally be priced in US dollars in the global markets. That normally happens via the large gold routes. Let me take a quick water. So in the case of um these different gold centers, you've got Hong Kong, you've got UAE, you've got Singapore, um and less reliance upon the West unless you can get that out of the West, um which I've covered in many, many times over towards these centers and then they end up in Shanghai as more and more imports and the sanctions actually help that because of the Iranian and Russian sanctions means you can buy discounted oil and the only way to get Chinese yuan in order to purchase those imports is to deposit gold. And so the gold market, which is why UAE set up the infrastructure for Iran being able to circumvent such sanctions as well um at the same time as normalizing with um the uh Israel in terms of the Abraham Accords which allow them to acquire Israeli assets as well as not selling US assets via an FX swap line rather than selling US equities and US bonds, they're gaining influence through their sovereign wealth fund. What is their sovereign wealth fund propped up by a lot of energy sales to China and so you can see how this multipolarity circular flow is working where America gets more and more privately owned or anyone that follows the same model as does Israel um is getting more and more privately owned. They're aligning with transnational capital and now the sovereign wealth funds are able to influence the financial industrial complex and transition to this multipolar world order that we're we're seeing. Um, and remember with UAE and Hong Kong um these uh these currencies are pegged to the dollar. So they need to defend their dollar peg as well and they don't want to sell um gold. So they're selling US Treasuries and so they're getting UAE was given the option of an FX swap line to stop them selling their Treasuries because when you sell Treasuries, interest rates go up and the interest on the US debt goes up as they refinance um their debt. And so at some point someone um sold the rupees in order to purchase the gold. Um, and uh the only way you can do that is to purchase dollars. And so if you purchase the dollars um and you're buying the gold, um they also may need to sell their Treasuries. So to get dollars, if you're a country and you're defending, if you need dollars in order to purchase gold, um then you need to sell your US Treasuries and that's why we're getting a lot of stress in the bond market as well. Um, but the end result is that it weakens, it weakens the Indian rupee relative to the dollar and relative to gold. Now India imports approximately 711 tons of gold per year. You know, that's a lot of gold that they're importing, both for domestic use and also central bank. Um, so if you calculate that to at gold prices today, that's about $72 billion of annual dollar demand that comes just from the gold alone. Also, um, it is India's, if you, if you take oil because it set up the routes to circumvent oil sanctions with Russia and send it to Europe, um, and they get the discounted oil through this trade, um, and then they can, Europe just pays the higher prices in these subordination structures, you know, the crazy ones, but India's second largest import is oil. So the largest import is gold and the second largest is oil and so the rupee is now approximately, last time I looked, about 96 to the dollar, um, and that's a record low and so that's a real stressful situation. Now, what is the Reserve Bank of India doing? Well, they've been selling dollars from their reserves. So their dollar reserves are going down, which is, they don't hold it in dollars, they hold it in Treasuries. So they're selling their Treasuries um in order to get dollars, then buy gold in order to slow down the slide of the currency. And so that means these, they're basically selling Treasuries, which is another part of the stress. This is why there was no such thing as, you know, and every analyst would know this, that we're at the highest levels of decision making. There's no such thing. It's a great narrative to say America's got the energy, therefore we're insulated. But everyone, and I was analyzing in real time throughout this whole thing, the bond market and the oil market which was dictating everything and the policy. And so that means that selling Treasuries to get dollars pushes up the US Treasury yields, which pushes up the amount that America has to pay in order to refinance its debt, which can create a doom loop. Um, and that needs to be propped up only by the Fed buying those Treasuries, which is why we move to a big money printing in what I think is this managed transition. So that blows, blows out the US debt interest. Um, and that's what we started to see and that's when we start to get change in narrative and we also, you know, prepare for at what moment in the AI bubble are we going to be able to start doing the emergency narrative of why the Fed should be buying these Treasuries on mass in order to get those interest rates down. So remember when you buy Treasuries, interest rates come down when there's more demand. When you sell those Treasuries, interest rates go up as well. Um, and that requires the Fed to intervene. Yield control is called, um, and, you know, yield curve control. Now we also started to see more stress in other countries and you can see how these gold wars are really playing out, these commodity wars and currency wars. Um, Turkey already had to sell down, uh, both this the last week or so. It looks like they're completely depleted of their US Treasuries again, um, and their gold reserves in order to defend the Lira. They're having a bit of political pressure where Erdogan's staying in, installing competition that doesn't look like they will be strong. The markets reacting to that. They've had a rough ride um with the currency wars and everything that's been happening. Um, and this is what, um, you know, a leveraged um currency defense looks like. Uh, you know, you're selling your Treasuries, you're selling your gold um in order to protect um the the currency. Um, and so Turkey's, as in reaction to that, Turkey's stock exchange, it halted, I think it was today after about a 6% drop. The US, Turkey traded ETF that I track, that fell roughly 10%. And Turkey's 10-year bond yield is already at a record of 33%. So that's a lot of stress that we're already um starting to see. Now I do believe that um Turkey has a very important role in this GCC aligned order um and the corridor between Europe and BRICS um and the fact that they're a NATO member and that they have a very advanced military in part of the security pact relationships when we move to these regional stability with Egypt and Pakistan as well. Um, but they are definitely being targeted on the currency war side. Uh, this is clearly um, you know, engineering um the stress. I'm not quite sure from who, if we follow the money, whether it be from the BRICS side or whether it be from the FIC side, but I think that gold's most likely to end up in um Shanghai as a result of that, which is in line with FIC's transition to multipolarity as well. And we know that in the West, I've covered this in many times, there are many times more derivative contracts than actual physical gold and whenever we hit stress like COVID, the central banks lend the gold and the ETFs obfuscate the demand for gold, um, but at some point that can be utilized. That's one of the structural rug pulls that I talked about um in this relationship between China and the FIC as well.

Now India, um, raised, you know, one of the things you can do. India raised import duties on gold from 6% to 15%. So you now have to pay a duty on imports. That's a more aggressive strategy. That didn't work. So you're asking people not to buy it. You're charging more on the import tariff on gold. And no, Modi basically went um and and asked the citizens to just uh stop buying it. Um, but imagine asking your citizens to stop buying it while the Indian central bank is buying gold um at the same time. So you're basically saying we want to print fiat currency to buy gold and you get the devalued currency and we're asking you not to buy gold. And so they're saying to the Indian people, you hold the Indian rupee um and don't buy gold and we'll hold the gold and benefit from the printing of the rupee to buy that gold. That's called a wealth transfer to the central bank, to the assets of um of that central bank. And so it won't work like, you know, the, in general, Indian people will probably use it to buy more gold um in general. I don't think it's going to work. Um, but the order of escalation from here when you start to hit such an area of stress is that in order to defend the currency, you've got a few options. One is you sell your reserves first. So that's what we're starting to see. Then you try and raise rates to encourage people um to buy the bonds instead. Then you raise your um import duties in order to discourage the purchase of gold. So we're right through that phase of the cycle. Um, and then you impose some form of capital controls to prohibit it. Um, and at that moment, that's when you start to see people wanting Bitcoin in self-custody. A long time ago I invested in many of the largest Indian Bitcoin exchanges right in the beginning, because, you know, I thought that this would be, this would be something that, you know, when we were in the early days like 2014-15, when we're really pushing penetration of Bitcoin into these countries, we were trying to get as many people prepared for these things as well. Um, but anyway, I don't think that the appeal to, you know, to the people is going to work. So maybe we start to get to more um capital controls in order to protect the rupee. We'll see. Um, but those are the types of events. We saw it during the Indian monetization event, I can't remember when that was, maybe it was about 2014, 2016, 20, can't remember, where everyone had to queue outside with cash and digitize their Indian rupees into a digital format, that led to a big pump in, you know, people understanding the value of Bitcoin at that time, which is why at the same time, I've covered this many times, that the FIC is doing their centralization strategies to suppress the price of Bitcoin while they try and centralize as much of it into treasury companies, ETFs, um, and, and get you to give it to them because they want your Bitcoin and they want you to borrow against your Bitcoin. We saw a lot of movements towards that. I'll be covering that in a bit. But Indian households have basically bought gold for generations. I don't think you're going to change that habit. They understand um the currency wars. It protected them through basically every single rupee crisis. There was one in 1991, there was one in 2013, there was one in 2020. If somebody's over the age of 50 and have lived through this in India, they'll remember during the fall of the Soviet Union in 1991, India had to, you know, they had to like there was big gold that was being helicoptered or transported over to London, when and the Bank of England, and that was 1991, and that was to secure basically an IMF loan. So they needed an IMF loan and they needed to physically transport that gold over to the Bank of England. And anyone over the age of 50 will remember these events because they basically lost about 80% of the value because they were saving in their local currency rather than saving in gold. And anyone that was saving in gold, they were protected. And so, you know, we're starting to see interestingly such signs of distress in England. So they're going to be going through maybe their moment to need an IMF bailout which comes with austerity, removal of benefits, you know, and we're starting to see a lot of the um the tax policies in the UK to discourage wealth and, you know, unrealized wealth taxes potentially in the future, discourage people owning real estate, and, you know, transferring that over to institutional ownership. We're seeing a lot of those policies at the end of these cycles. That's the extraction phase. That's when you're asset stripping. Asset stripping. Asset stripping while deploying capital and taking that capital over to countries like the UAE where you had all the millionaires and billionaires leave the UK and go over to UAE. But basically exactly at the same time where in India, they're telling households to stop buying gold. The Reserve Bank is buying it. And who else is buying it? Well, China's buying it. Also the Gulf countries are buying it. So, everyone that has the sovereign wealth is reducing their treasury exposure and increasing gold as a reserve asset. Now, there's still very large demand by those that need dollars because of the oil trades. And that's why you had a bit of a strengthening of certain countries relative to the dollar measured by the DXY index, the Swiss Franc, the Euro, the Great British Pound, Canadian Dollar, Australian Dollar, those types of Western hemisphere. But those ones that are really connected to commodities, then we've been seeing a strengthening of their currencies relative to the dollar. So we almost need a better index than DXY, I think, to start measuring. I'll start looking into that as well. Uh, so the Gulf are still buying gold into this as well. Central bank gold reserves are climbing, um, and, and that's happening, you know, across the entire emerging world into these multipolarity trends. Um, and so really what the trends we're seeing anyway is physical metals. They're moving from western aligned and, you know, London and Switzerland over to eastern aligned vaults and that's the big shift we're seeing. Um, and now India is increasing it at the same time as asking its people um to sell. So India's on the buying side of that trade as a central bank, but not the people. So, you know, that's how these central bankers work. When you follow the money, it it just really exposes the system for what it is. Imagine having a money printer so that you can buy the asset that people want. Welcome to central banking. That was really the entire Dutch East India Company, British East India Company and American IMF, you know, Bretton Woods system in a nutshell. Um, so anyway, the sovereign gets to keep the hedge, the people get exposed. Is if you listen to them, so we don't listen. What actually removes the rupee from here is a couple of things. So this crisis for India, which is why it's very strategic for China in terms of if they have leverage of when this opens and they just sit back. But if you can get the rupee, if you can get oil prices under about $80, then there will be a strengthening of the currency as a result of that. Right now we're getting around still $97 on off deal on deal, off lots of manipulation, but if you get it to around about $80, then that trend could the fate could reverse a bit for India at the same time as them having many of their businesses that rely upon propane for street food cooking and the farmers that need the fertilizers. I think they have some reserves. India seems to be getting hit from every single angle as the net loser, which is perfect for penetration into multipolarity for the FIC as well. Or the only other thing is the Federal Reserve toning towards rate cuts as well and it looks like we're going through rate hiking cycle is the indication unless, you know, if we end up in rate hikes and so neither of those is in control by India or Modi. So they are in the hands of the financial industrial complex through the Fed rate cuts um and big oil in terms of the outcome of

The opening of the Strait of Hormuz, which really, to me, is a negotiation between FIC and China, and the Gulf countries, um, as well as Iran. Um, and so that's why you're starting to really see, uh, lots of the movements around here, and India seems to be the net loser in this situation. Um, this is already showing up in the Indian ETF. Um, INDA is the ETF that's down about 11.49% on the year to date. Um, and it's near a 52-week low at about $47 or so. Uh, we started to see institutional holdings drop by about 173 um this quarter um, and 27.8% of the ETF is Indian banks. And so the biggest banks are HDFC, ICICI, um, and Axis. Um, they, uh, basically are going to be absorbing the damage from this if the rupee breaks, you know, further and further and further. Um, and that will need, you know, that will need more formal capital controls to arrive. So we might start to see the more draconian types of measures implemented within India first. So we'll keep an eye.

In the meantime, we've got some announcements from Hong Kong. Um, Hong Kong is targeting July in order to make an announcement. So June, July, next, uh, couple of months in order to launch a new, um, gold clearing system. And so this is going to be government-backed. The system mirrors, basically, London's, um, clearing infrastructure. Uh, they've been working on it for a long time. So they're upgrading and taking the role of what London has historically done. And now, interestingly, it's in terms of those derivative contracts, unbacked gold. So we seem to be moving, uh, some of the western ponzi-like fixed structures over towards, um, Hong Kong as well. Um, but that can be a mechanism for transferring the actual gold into, um, Shanghai. So this supports the whole narrative of the structural rug pull that I've been talking about with the derivative contracts, uh, to physical settlement. Um, so it supports unallocated gold accounts. So you can have an unallocated gold account. Um, it's allowing faster and more scalable settlement, was the announcement, um, without ownership of the specific bars. Uh, this is more of a custody relationship. They want your gold, and they want you to have a gold IOU, just like they want your Bitcoin, and they want you to have a Bitcoin IOU. You will own nothing and be happy. They want to tokenize it so that they own the asset, and you're more obfuscated away from the actual asset. Um, so the system is, uh, basically designed to strengthen Hong Kong's role in gold trading, uh, gold financing, so borrowing against your gold in order to take those, uh, alternative payment rails as well, um, and gold storage. Um, so they're going to be, um, they sent out invitations to basically China-friendly central banks around the world to be integrated into the Hong Kong system. And participants include, in terms of, um, ICBC, the largest bank of China, Bank of China, uh, HSBC, uh, the legacy drug trafficking, um, bank that was set up in the Opium Wars, JP Morgan, the Epstein's bank, um, and the one that does the, uh, many of the central intelligence banking after, uh, ICBC, um, the, uh, CIA banker came down, UBS, uh, which is the Swiss bank, um, for, you know, these structures from the west, uh, via many of the drug trafficking and laundering routes. Um, and basically Hong Kong has signed a cooperation agreement, uh, with the Shanghai Gold Exchange so that the gold can actually be, um, uh, transferred over as we're getting this exodus away as well, um, to effectively having a weaker Chinese yuan with capital controls that allows for cheap imports, and then the Fed can integrate into those rails as we covered last week in the, uh, Shanghai meeting. Um, uh, but, uh, basically they said they're going to be looking to increase the capacity of gold storage to about 2,000 tons, uh, within three years. So we're starting to see what's happening there.

What else have we got? Um, uh, there was a bit of a reemergence of the news around China banning the purchase of Nvidia's, um, chips, the RTX 509D version 2 chips. Um, and, uh, that was old news. Um, but this, what's interesting is this was announced or formalized right after the Xi Jinping meeting. And so remember Trump saying he's gonna get, he's trying to get, um, he, you know, he's gonna allow China to buy those chips. And I said, well, China's stopping their companies from buying those chips because they want to be focusing on their own, um, infrastructure and chip independence. Um, so Jensen Huang was visiting China, and that created a big pump in the stock price. Uh, that was last week. Um, and then we got this old news but new formality, which I think is quite symbolic. Um, and so the chip, what the announcement actually said was that the chip, um, uh, was basically ended in China's, um, oh, right. So it was formalized, um, as a blacklist last Friday as well. Um, so that coincided with the meeting. Um, and China basically wants to support its, uh, domestic chip makers, like Huawei, and, uh, they're making sure that they're going and leaning deeper and deeper into that. Um, this is all leading, I think, to the AI arms race narrative, leading up to these IPOs, leading up to this, uh, very large need for liquidity. Um, and it continues to accelerate into, I believe, the need for that big print that, that I'm expecting. Um, when they get the timing right, um, almost all, as I've always said, and I repeat now if you're new to the show, almost all US growth is dependent upon data centers. Last year, it's pretty much the whole growth story, foreign direct investment, investment in all of the supply chains around building out these AI and robotic data centers. Um, and that is still continues to be, that is the economy, that is the GDP, that is the stock growth story, that is the software that sits on top, the commodities, that's the war, that's the energy, that's everything that we're witnessing right now. The entire world is being flipped upside down, um, for this AI and robotics supply chain. Um, and so all that is a MIC-FIC, military-industrial complex, financial industrial complex, technical industrial complex, stimulus checks. Um, you pay the debt. Um, but the value goes into the stocks via these increased revenue contracts, um, that come from this. And that's why we need the big print. That's how you get the Fed buying the bonds to do the yield curve control. Um, and then the bonds are used in order to stimulate MTI and config, which creates, accelerates the K-shaped economy and centralizes to the largest degree in the largest wealth transfer we're likely ever to see.

At the same time, Meta, um, started to begin making 8,000 global job cuts. You know, the metaverse company that used to be called Facebook, that doesn't have a metaverse, um, and spent billions of dollars on that rebranding, and then closed the department. Um, now they're laying off their staff so that they can invest in data centers. Um, and so is it going to be paid for by the government, by effectively you, um, through the government national debt, or is, um, some of these private companies going to be doing it as well? Um, and we're seeing more of that build-out in terms of that. But the layoffs were, um, primarily for Meta. It was announced starting with Singapore. Um, Goldman Sachs, uh, was, uh, uh, announced, uh, to be doing the SpaceX IPO, and they also got the Anthropic IPO. Um, and there was a series of FIC banks that are getting, like, supporting the deal. Uh, because SpaceX will be included in the index fund from day one, because a new clause came out saying you have to be worth a trillion or more. Now, is Anthropic going to be a trillion or more? That's an interesting one for us to watch. If the OpenAI and Anthropic are below the $1 trillion valuation, and SpaceX is now, you can start to see why Elon, representing the tech, um, is getting, you know, some of these more favorable terms for the largest political contributions to the Trump administration, who's more aligned with FIC, um, than anyone else. And so we'll see, maybe they all get in, they will be included. But let's watch out. I think it's an interesting data point in understanding power dynamics and, and the struggle. Um, so OpenAI is reportedly, uh, rushing forward the IPO now. Um, they're trying to get the SpaceX done as soon as possible. Um, and I think Anthropic will have to. So they're trying to get everything done in a rush. Um, that's because I think they're trying to coincide the liquidity with the opening up of the Strait of Hormuz and the announcement of the deal with Iran. Um, SoftBank, you know, the largest or the biggest, um, private investor venture fund or institutional investor fund in Japan, connected with the Bank of Japan carry trade. They have gone all in on OpenAI. Um, they've been selling everything to get more and more position on OpenAI. So what is it that they know, or what is the operation there? Because Japan and the Japan carry trade is something we will understand, um, as the timing of them increasing rates is breaking, um, much of that Japan carry trade, that's leading to big intervention from the Bank of Japan, um, in order to control those currency wars between the dollar and the, and the Japanese yen. Um, so SoftBank has now got a $60 billion leveraged position, i.e., highly leveraged to the hilt. And so if that is a buy the news, sell the rumor type of event, how long does that leverage last? This is looking very much like a, smelling like a Long-Term Capital Management type of trade. It is also integrated. You know, that's, uh, that's something we need to watch because we still haven't got any transparency on who was on the wrong side of the silver trade and the, and the, you know, this, um, trade. Are they going to make up for losses because they know something we don't know, or is this going to be an instability trade? Um, I'm going to keep an eye on that very, very carefully. But imagine borrowing, um, significant funds to buy an IPO, not knowing that a big pump was going to happen, or there was, um, some kind of operation to correct it. We shall see. It's a big bet. A really big bet. Um, yeah, so we'll see which one that is. I'm going to keep, um, watching that. Um, but remember the other side of the Japan carry trade as well is that you have hedge funds that are 100 to 1 leveraged, up to 101 leveraged to buy US Treasuries and nip out from money that they borrow from the Bank of Japan in the carry trades. So you've got the basis trade, the carry trade, all leveraged, and then you've got a leveraged investment in OpenAI by SoftBank. Um, it's going to be really interesting. To me, that looks like they need to do a, need to do a pump and sell quickly. Um, or it's some kind of Long-Term Capital Management type of thing. But either way, um, this is going to have impact on the US Treasury market because, you know, what makes the difference between Japan and America is Japan has a massive, massive, um, trade surplus, and capital accounts, sorry, not a trade surplus, a capital account surplus, which means it's got lots and lots of assets. And that's the other half of the, what gives the dollar the world reserve currency. America has a capital account deficit. Has to have a constant flow of investment. Um, and Japan is the largest, next to Cayman Islands, holder of those US Treasuries. After that, you've got the UK, then you've got Europe, and then you've got, uh, the combined effort of Europe and China as well. And so this really is looking like something we need to be watching. Um, and at the same time, uh, SoftBank, which was, remember, an investor in 21 Capital, Jack Mallers' Bitcoin treasury company, that was brokered by Cantor Fitzgerald and had Tether as the lead investor. And I was saying, oh, Jack, you're the face for deep state operators here. Once you're in, you're never coming out. Um, well, Tether acquired SoftBank's, um, entire $780 million stake in, um, the Bitcoin treasury company 21 Capital. And so SoftBank, um, is simultaneously going leverage long on OpenAI while selling their, um, position in 21 Capital to Tether. And stablecoins are the mechanism for printing money and backing it by treasuries. I haven't quite put everything together, but these flows are looking very, very sketchy as well. And I've got a feeling in the future, we're going to be analyzing this one, and it's all going to become very, very clear. Um, but over $60 billion leverage exposure, as I said, ahead of the IPO. Um, and that's a make or break trade. Like, it's either going to break SoftBank, SoftBank, or it's going to be a very successful trade, but it's going to create a lot of selling pressure. Um, and it has to, because it's leveraged, and they don't have the cash from what we can see. And so Tether and Cantor are effectively building out the next cycle of leveraged infrastructure through all these Bitcoin treasury companies. We've got MicroStrategy launching their stretch product, which, uh, allows, you know, for more and more people to get 11.5% on stretch, but they use that in order to purchase Bitcoin that they believe will go up more than 11.5%, and then they can change the interest rate based upon whether the product goes up or below $100. $00. To me, these are all deep state actors. You know, these are operate. These are all fake operations trying to centralize as much Bitcoin, get you to not have the Bitcoin, you have something else instead. A lot of stress in the treasury market here. Um, put this together, and you know, this is extreme circumstances that we're, that we're, we're witnessing at the same time as all these structural rug pulls that I know are happening that I've described, as well as the fact that China has the discounted AI and the capex invested in all of these AI data centers is signed at a very, very high price, and the energy crisis is making AI more expensive in terms of the input costs. Nvidia's making record profit selling the chips and infrastructure. The government, um, you know, the, the investment in building out the data centers is there, but they're selling at these valuations, revenue so far forward where it's really unclear how that revenue is going to come from these software companies. Are they going to be acquired into Apple or Microsoft in distress? We'll see what's happening here. Um, but it's really similar to kind of a credit expansion market. And I think there's a rug pull that integrates both the treasury side as well as those trying to centralize as much Bitcoin as possible and persuade you not to self-custody it through strategy, treasury companies, ETFs, borrow against your Bitcoin. And what is it that 21 Capital does? It creates, it integrates well, it's going to be acquiring Strike, and Strike offers Bitcoin-backed loans and now offers stablecoin services. Um, so you can see where this is going. The programmable money grid, the structural rug pull of Bitcoin away from self-custody. Um, the pump and dump of the AI, um, trade, the centralization that comes as a result of that, the energy repricing, the moving of commodities, the more draconian, um, policies that are happening in India. Um, you know, this is why there are so many, uh, people struggling to figure out what's going. When you understand that this is a transition to multipolarity, and the Fed is on board, and governments are captured by corporate interests, and the closure of the Strait of Hormuz is coordinated, and Iran has factions of power, um, that will be a part of the pro-yuan, pro-dollar, as well as UAE, as well as Saudi Arabia, and that it is China's plan that's normalizing, and bases are being destroyed, and infrastructure needs to be rebuilt with new investment contracts and investment agreements. You can see that this is transnational capital pushing things in that direction. And in the co, the whole Bitcoin, crypto, stablecoin setup starting to smell a lot like the Celsius FTX days. Um, and, uh, already we're seeing from Signature Bank that they're starting to reveal how they were taken down, um, by, you know, um, FDIC in Operation Choke Point 2.0, and that led to this setup with BlackRock and everything we're seeing. So to me, it's very obvious these are fake corporations, and you just protect yourself by observing and staying on the side. Anytime there's weakness, you get some more Bitcoin for your fiat currency. You stick it in self-custody. Um, the, the longer the weak markets go and manipulation, you get more Bitcoin. Measure your wealth in Bitcoin rather than dollars, and you don't get the optical illusion.

Now, look, congratulations if you can make money out of timing this AI trade. You're a better person than me, because I don't know what the timing is going to be. I can just speculate. Um, but I don't want to participate in these things. If you participate and you've done incredibly well, like this AI trade has been unbelievable, um, in terms of, uh, what is, you know, where it's taking us. Um, so anyway, avoid these Wall Street rappers, as I've always said. Um, we're getting a big movement towards tokenized leverage. BlackRock wants to go all in. We got Clarity Act coming, everything I've been, been covered over the years. Um, we're getting more and more of these private credit vehicles, more synthetic exposure, uh, to these different types of products. Then people are building tokens on top of stretch and paying more and betting more, and we're just getting more and more degenerate. Um, and, uh, you know, I've seen this market many, many times before. Um, and it always ends in the same way. Uh, retail absorbs all the losses. Um, everything, all the movement and wealth goes up to the financial industrial complex. Um, and, uh, the, those in the know were positioned, um, to benefit from what looks like a really big liquidity event being engineered. Um, now, if you see it coming and you know it's coming, then you position yourself accordingly. Um, but it's normally just one big wealth transfer upwards. Um, and it's a big, it's a game that's played by the FIC, and the FIC makes money if it goes wrong, down, up, leveraged, V. Um, they've covered the game. It just concentrates wealth upward. The game never really changes. It only gets packaged in a new deal. And at Simon Dixon Hard Talk, it kind of gives me content forever trying to get people ahead of these things so you can figure out, um, how to position yourself. But a big movement into programmable assets. Um, we're seeing all of this narrative around real-world tokenized assets. Um, they've actually reached now. Um, I was a big investor in, um, Securitize. Um, early on, we, um, through Bank to the Future, um, you know, we funded that syndicate, and then they ended up getting a deal with BlackRock, and tokenizing BlackRock's fund. I also ended up creating a broker-dealer that we sold to Coinbase at Bank to the Future, and they ended up being used with the custodian to BlackRock meeting up with Larry Fink and pushing forward these tokenized securities as well. So, ironically, the infrastructure that we funded, um, and the company we, uh, ended up selling to Coinbase, um, I'm glad that I'm out of it, but it seems to be being utilized, um, in this tokenization, programmable, Orwellian nightmare where you will own nothing and be happy. In fact, now these assets are up to $33.8 billion. That means BlackRock gets the asset, you get the token. Um, and they have programmable freeze functions in those as well, because regulations require it in order to comply with Bank Secrecy Act, Patriot Act, GENIUS Act, Clarity Act. Um, so anyway, tokenized securities and real-world assets, they're up more than 1,600% in two years. Um, Jupiter has begun, um, listing tokenized assets. Um, and that's through a partnership with the company that I, uh, funded early, which was Securitize. Um, I thought we were going to be doing things with securities that he couldn't be doing, but it ends up FIC capture as the banks started to invest as well. It's why I've always simplified down to Bitcoin and self-custody. Um, every company I invested in ended up pretty much a fake corporation. A multi-like Coinbase floated for a hundred billion dollars. Um, and then you're captured by FIC as well. Um, so anyway, uh, I don't tell you these things for just for the sake of it. It's all from experience. It's always just a different flavor. Um, the SEC announced the Securities and Exchange Commission that they're now allowing for the trading of tokenized assets. Um, this could be the biggest restructuring of, uh, the US securities market. Um, shifting everything towards programmable financial infrastructure. Um, and, uh, you will own nothing and be happy. So now you just put another layer on top. Um, you've got the, you know, the underlying company, which is a register, and then you got DTCC, which is the settlement layer owned by all the banks and brokers, and then on top of that, the broker owns your shares and gives you a share IOU. Um, and then the share IOU is tokenized with a tokenized share IOU, DTCC obligation to make sure you will owe nothing and be happy of programmable, um, money. Now, it may allow you to transfer it 24/7, um, but it can't solve the problem of connecting to the real asset, because the only thing that made Bitcoin work is because Bitcoin was the asset. Um, and Bitcoin was the transfer network. When you try and peg that to a physical asset, it requires trust. When it requires trust, who's the oracle? When it's the oracle, is it going to be AI? Then it's probably going to say, "Okay, we don't trust humans, but we do trust AI." Um, and basically AI takes over all the, the transfer of these assets as well. This is where we're heading.

Now, a few things before we wrap up and go into the second section, um, where I did the interview with Capital Cosm, Danny from Capital Cosm. Um, I don't want you to be distracted with the politics. Like, have you not reached the stage right now where you have figured out that FIC, MC, and the lobbies control the politicians? The lobbies, they select who's elected. Um, and you get a bit of a game, and then they put someone that looks like a wildcard in, um, and that wildcard just can't get anything done. Um, well, that happened with Thomas Massie. Um, what this is designed, once you reject the process, you realize you vote with your money, and the voting process, and the false left-right dichotomy. Um, all of the divide and conquer, distraction narratives are just that. Massie is just there to look, he may be doing everything that you, that that you, you like, but he's there to keep you locked in whenever these new saviors come along. It's like, oh, if we just get Reform Party, if we just get Nigel Farage, if we just get Thomas Massie, if we just get Trump, and nothing changes because it's 100% systemic. Now, look, if you want to carry on believing in the BS, then you carry on believing in the BS. But the system's captured, and I personally believe, um, participation and not participating is the ultimate. And in my, um, interview, um, on Impact Theory with Tom Bilyeu, um, I actually shared what breaks a system, and I don't like sharing it because it's quite radical in terms of the impact it has. But make sure you watch that interview. If you want to break the system, that's how to break it. Easier said than done. Um, but you're not going to vote your way out of this. And we create, you know, we need to create our decentralized communities, our decentralized technology, our sovereign individuals, our sovereign businesses, so that then we can impact this, whether our country is sovereign or not, um, to the degree that it's possible. Um, if you haven't caught up on my episode where I talked about escaping the financial industrial complex, I think it was like two weeks ago, two weeks away, where I did an AMA, check it out. You've got to spend more time on you, because it's always about locking you into the system, into the belief that something can change, and your vote actually matters. And from my perspective, it doesn't. I remember trying to change the banking system through politics, um, during the global financial crisis. I left my job in investment banking. Um, I was lobbying, contributing to the Vicar's report that was investigating what happened, um, during the financial crisis. I told them about non-fractional reserve banking, all that stuff. Um, I went to Houses of Parliament, Houses of Commons, um, you know, and they just play games. They just keep you believing that something can change, but they all work for the banks. Um, because the lobby controls, the Fed controls, the MIC controls, the tech controls. Um, so the US, um, is now, you know, what are they looking to? What, what did you get out of the Xi Jinping meeting? So maybe you were waiting for some 5D chess. Well, the announcement was that the US needs 500,000 Chinese students to bail out the university college system, because now they are just flogging off degrees to anyone who will buy them, because they know the writing is on the wall, and the college system is funded by the same lobbies that control the politicians, and they write the syllabus to make workers that are misinformed, doctors that are drug dealers, economists that are debt dealers. And by the end of it, I did the masters. You don't even understand how money works at the end of it. They don't teach you how the system works. It's why I created this channel to document the journey. That's why I left investment banking, because they keep you a cog in that. And the colleges are no different. Um, and so they're trying to lock you in with believing that changing the politician matters. They're trying to flog off these university and college degrees because many in America can't afford them. Um, and now people are choosing AI, and so they need to get Chinese people, um, to sell them. They're also selling them to India. Indians and Chinese are now buying, you know, record numbers, and they don't, uh, they're taking that information back home, and, you know, it's just how it is. They're just flogging off these degrees and these masters and locking you into that system as long as you still believe that's the system that's working. And culturally, that's never more, um, prevalent than in China and India and other areas of the global south as well. So, universities have really just become a mechanism for, uh, enslaving people into debt, distracting them for three to four years, um, and using that money in order to control the political system and build the largest endowment funds in the world that work with FIC while the syllabus is set by FIC. Um, and, uh, they're really just indoctrination camps for the FIC agenda as well. So, uh, colleges in my estimation, in this world of AI that we are in right now, are dead. I think you're better off learning AI for the next three years. Um, and, uh, actually earning as much income as you can, helping people manage this transition, small business, large business, um, building your own business, whatever's right for you. Um, help people manage this transition within your company. Um, learn as much AI, be as valuable to your company, uh, as possible. Get a job in AI. Um, don't do university. I just can't see it returning over the next three years. And I think the next three years, the world would have changed so much. Um, and generate as much income as, as you possibly can. Take advantage of weak Bitcoin prices. The more fiat currency you earn, the weaker the price of Bitcoin, the more you get, the more Bitcoin you get to accumulate. Own more Bitcoin each month. Hold it in self-custody. And then you've got both sides of the trade. You, you are qualified into the AI side. Uh, maybe you're involved in the decentralized AI side so that we can have resistance against these centralizing, uh, forces. But you're building your sovereign wealth as well, and you're measuring your wealth in Bitcoin rather than playing the fiat currency trap. So save in Bitcoin, um, as you're doing this as well. Um, enjoy price corrections, because it means you get more Bitcoin for fiat currency. And remember that, um, if you want to check out what's happening on the Iran Bitcoin insurance side, go check out my interview I did with Sulaiman Ahmed. I uploaded it to my YouTube channel, and I also created a blog summary of it on simonixon.com. Um, but Bitcoin in self-custody is the protection that I always share. Um, and it allows you to exit from the playground, from the boycott, the playground. Um, and you can either change the system from within, or you can just exit. I'm at the boycott stage as well. Um, I believe that money has energy, and money that's exited from the spiritual cancers of MIC and tech is good money that I think returns many times over. Um, so as I said, uh, this week I was traveling. I recorded an Impact Theory with Tom Bilyeu, um, and, uh, that will hopefully come out next week. Um, and we'll be going through everything that happened. Like, the news flow is getting deeper and deeper and deeper. Um, but now we're going to call it quits here, and we're going to move over to part two. In part two, I covered why they're pushing to build out 5,000 AI data centers, and I give real-time analysis of the Putin and G meeting and the AI bubbles with, um, through that interview. So, we're going to head over to that interview now. Um, in the meantime, do me a favor. Um, could you subscribe to this channel if you're not a subscriber? Um, and, uh, if for one day YouTube takes us down, we also stream this over on Rumble. So, please follow me over there. Um, I give real-time updates in real time on X, Simon Dixon Twit. Please, uh, follow me over there if you're not, follow me already, and you can come up to a space that I might be participating, and we can meet each other, um, on a conversation. Um, also, if you prefer to do this on the move and download it, then go to Spotify or, um, Apple, and Apple Podcasts, and you can, uh, watch, listen to this bit by bit, um, and download it each and every week. And in case all of those get taken out because they're dependent upon intermediaries, I back everything up at simonixon.com, where I even take these longer videos, um, and, uh, our team, my team, condensed them down into five-minute whiteboard videos and 20-minute summaries, um, and written summaries, so that you can catch this in every format possible. I want to make it as easy for you as possible while I cover the topics in in-depth analysis so that you can start protecting yourself. So always remember, you're alive at one of the most interesting and exciting times in financial history. Scary for many, really bad for many. Um, I want it to be great for you, and I want you to be ahead of that change. So let's now move over to the interview I did this week on Capital Cosm with Danny, and I'll see you this time next week. Peace.

The overarching goal is to have the justification for a police and surveillance state. Um, and so we are moving to that pre-crime, um, social media scraping, arrest based upon predicted behavior, um, voluntary social credit scores, um, enforcement through drones, robotics, um, Terminator-type of environment. Like, we, that is what the end result of the AI, uh, data center build-out is. There is not enough energy in the world to power that. So they're building capacity to power it. >> You're watching Capital Cosm. My name is Danny. It is May 19th, 2026, and my guest today is Simon Dixon. Big fan favorite on the show. Simon, thank you so much for making the time. >> Oh, hey Danny. Thanks for having me. Every time we do like a couple of weeks, and then the world seems to change. >> Oh, exactly. I mean, even if we did one every day, there'd be a ton of stuff to talk about. So, uh, you know, let's, let's take it, let's talk about this China summit that we saw last week and, uh, the Putin summit, the Putin G summit that's to come later today and tomorrow. Uh, we'll get some developments later on today. But, uh, let's just recap what we saw at the China summit and what are some of the key items from that meeting, um, that play into your your thesis, and if you see anything has changed overall in the overall trajectory between the US and China. >> Yeah. Um, no, I don't think so. So, uh, I was, I was thinking this, uh, meeting could have been quite a symbolic event to, um, resolve the Iran situation. I thought that for a long time, um, and, uh, and the original meeting was delayed. So I thought, okay, there needs to be more time to, um, figure out a deal. Um, and in the meeting passed, and, um, it, it's become very apparent to me, um, that there is a lot of benefits to having the Strait of Hormuz closed, and everyone that benefits from it, um, with the exception of, uh, Russia and Iran, that also benefit from it, um, in terms of these higher energy prices, oil prices, and sanction relief, um, and also, you know, uh, showing, um, signs of US weakness in the world. Um, we're sat around a table in Shanghai. Um, and so it really, I think, is very symbolic for how power works today that you have Xi Jinping, the China Communist Party, um, with all the, you know, the, the, the politicians and important people within China, uh, sat around the table with the oligarchs of the technical industrial complex, financial industrial complex, and not all of the military players, obviously, with the exception of Boeing. Um, and so what we got on the post announcement, I guess you could break it into, there was a bit of a, a bit of a humiliation ritual with Xi Jinping having a higher chair and Trump having a lower chair. A bit symbolic, I think. Um, Xi Jinping didn't meet Trump at the, um, you know, actually coming off the red carpet from the plane, um, which I think is, you know, symbolic as well. Um, and so we, we had that kind of repositioning of, you know, Trump visiting China, and China positioning itself as a, as a, a rising superpower with, um, America looking like, um, the falling superpower. And it really much felt like, um, of course, we have respect. We are very important trading partners. Um, but, uh, we're, we're showing, you know, what the world looks like in the future. Um, and of course, Trump, uh, brought around everybody that would lead to a little bit of a stock market pump. Um, and the real power structure of America, which is the executives of the corporate companies that represent the interest of the large shareholder class, the financial industrial complex, you know, whether it be BlackRock, State Street, Vanguard, and Larry Fink, and, um, the executives from all of the major players were there. And it's almost like, um, a meeting of everybody that is going to be powering this transition to a world of AI and robotics. ICS. Um, there was also players like Visa and Mastercard, uh, which I also think is pretty interesting, because China will never open up its payment systems, um, to America. They have capital controls. They guard their financial markets, um, because they suffered that century of humiliation, and they know that the western tool for colonization is currency wars and capital market wars and acquisition of state, you know, of key assets in order to subordinate a country. Um, however, the financial complex, I believe, has been prepping for a multipolar world. Um, and so one of the golden gems that they could achieve is setting up global financial centers, whether it be through UAE, uh, through Hong Kong, um, through Saudi Arabia, that's opened up its markets now, and even the Iranian stock market got an announcement that is coming back online as we move into, um, a deal, the Venezuelan stock market. So, um, what I think the, you know, the, the FIC wants to do is set up these multipolar financial centers to hedge away from what could happen in the US when you're exposed to just one currency, one capital market, and one dominating financial system. Um, and so Visa and Mastercard being there is, I think, looking to integrate into the CIPS, Chinese Swift system, you know, equivalent of Swift system. They've all got, you know, in the Middle East, in India, in China, they're building their own payment rails, in Russia. Um, but integrating those payment rails into a new multipolar world, um, is, I think, you know, symbolically, and, and I don't look at these meetings as, all right, we show up and then we try and figure out a deal. Uh, the deals have been negotiated over an extended, you know, even more than a decade, I'd imagine, um, as we're, um, progressing to this managed transition. Um, and remember, all of those companies, they all depend upon China, uh, for their manufacturing, for their bases. You know, you had Tink from Apple. Um, the grow, you know, the growth of Huawei was based upon the World Trade Organization, globalization model, where China can provide all the components. Apple can set up their factory in China. They get access to the cheap labor, but you have to play by China's rules. And China's rules are, you know, we get to set up our own factories. We, you know, don't really care about intellectual property and patent protections and trademarks. You get the advantage of being able to have a cheaper product and a higher margin, uh, that you can sell into a debt-based consumption base. Um, and you can keep churning out those iPhones. But in the meantime, we're going to, you know, utilize, you have to employ Chinese people, um, and you have to train Chinese, um, know-how, and you have to build Chinese factories. Um, and so that know-how goes on and creates other competing companies, and then those companies with more investment in infrastructure and higher education, um, end up leading. And so you can see that all of those, you know, Tesla with, uh, you, you can see how this relationship works that, uh, there is no chance of World War II. Like, it's absolutely impossible as a concept when the US military depends upon China, and the US stock market depends upon China, and the US bond market has weakness that China can exploit. Um, and we are also seeing one thing leading up to this meeting is that there was, um, there's a large China fund, the big fund, um, that has been investing in all of the AI infrastructure and technology, um, for like Huawei and all of the big, um, tech companies. Um, but one of them, uh, got an investment, I think from Tencent and from the China Big Fund for software for the first time, which was DeepSeek, and DeepSeek, which can do 90% of what the best AI in America can do at like one-tenth of the cost. But now it's 100% integrated across, um, chips, hardware, energy, um, and software that has zero US dependency. And so now the fact that the infrastructure is now investing in software, and you've got DeepSeek that can function of the Huawei ecosystem, with these, you know, uh, energy independent corridors, they can do it at a significantly cheaper cost. Meanwhile, you know, we've got the, the SpaceX $2 trillion IPO coming, and the $1 trillion OpenAI, um, and an economy in America that for two years is 100% dependent upon ginormous capital inflows, just to build out AI data centers. Um, so you, you can see that, you know, we have this real valuation mismatch between what's happening in America and what's happening in China. A dependency from American elites on China. Um, and obviously, um, the, the follow-up narrative was from China saying, Taiwan is off limits. That's our red line. And that was the only thing they talked about publicly. Um, and then we had a series of announcements from the White House that were very symbolic. One of them was, you can do some trade with our farmers. Well, guess what? Um, that was lower than the trade that China was already doing with American farmers, um, prior to the trade war. Um, you know, so since they, since liberation day, then there was an announcement that, uh, China's going to buy American, um, oil and gas. Well, they were already buying oil and gas. It was February 2025 that they stopped buying LNG, and it was May 2025 that they stopped buying oil, and it was April 2nd, 2025, um, that the tariff policy started. So this is just, uh, false cards that can return to what they were before. Um, so, you know, beef, soybeans, oil, LNG. Um, there was, we're going to allow China to buy Nvidia chips. But if you remember, China prohibited their companies from buying Nvidia chips, because they want to go independent, um, and they want to have their own, um, infrastructure that they see as national security, as they do with energy, as they do with all of these things. I mean, uh, there was some symbolic announcement as with the Iran deal, you always have a fake narrative. It's about nuclear programs, and then you've got the real narrative. It's about energy. It's about, um, you know, oil, it's about gas, um, it's about other things. Um, the same happened here. You have a fake fentanyl narrative, um, which China has allegedly said, but remember the CIA protects the drug trafficking routes, and they're probably just rebalancing their drug portfolio, um, away from fentanyl to something stronger. Um, so all of that was nothing. But there was one interesting thing, and I think it was quite strategic, and I'll end here. It did say, with China not confirming it or not denying it, but strategic ambiguity, where the White House said, China agrees that, um, the Strait of Hormuz should open to free flow, free passage, and Iran shouldn't have a nuclear program. Um, now, those types of announcements by the White House, they don't normally happen unless it's kind of agreed that that's meant to happen. Um, and so China said nothing. Um, and, uh, they, you know, they got to say that. I think that really furthers and helps us get to the end narrative that's needed once a deal is announced, which I believe will still happen. Um, my analysis hasn't changed. I just completely got the timing off. This has taken longer. Um, and I didn't realize that they would use this opportunity to significantly reset the world order, do a manufactured crisis, um, and price everyone out the market. But now it makes total sense, uh, because we, uh, I believe we're still leading to, we need a narrative to justify the big print. Um, and it looks like the AI side, China forcing a deal. Like, I, I think everything's moving in, in, in that direction. Um, but there's a lot of deals still to be signed. So they want the clo, they want the Strait, all the powers want the Strait closed, um, so they can lock in as many deals as they can get at these higher prices, and force Europe into another LNG deal, um, with America. And so, in, in answer to your question, um, I think it confirms where I think this is going. Um, I think everything's taking longer, and, and, and I can see how now everyone's benefiting from the Strait being closed. >> Why does So you mentioned AI, um, both China and the US are competitors in AI. Um, you look at China's population, you've got about 1.2, 2 billion people there, um, in comparison to America, which is around 3 to 400 million. Now, America is building out something to the tune of 5,000 data centers. China has about 500 data centers that manages its surveillance grid. I mean, given the, I mean, why is America building such a disproportionate amount of data centers, especially relative to China? Do you think? I mean, I mean, your guess is as good as mine here, but I'm just curious to get to your thoughts. >> Yeah, I think, um, absolute number of data centers is a bit misleading. It's more around how much energy do they have, and, you know, China has multiple energy forms, whether it be fossil, coal, um, you know, LNG, um, hydro, solar, um, wind, all these, nuclear, all these different forms. Um, and China also is building out these mega, mega, mega, um, economies of scale, ginormous infrastructure. Uh, America starting to do the same. You know, the next one in Utah is meant to be like bigger than Manhattan state. Um, so although, you know, America's quite fragmented here because it's, it's private opportunities, um, and so it's relying upon, um, who's going to actually pay for these data centers, who's going to pay for the energy. One answer is, well, the government can pay for it. That's very unpopular. So you need to make some kind of crisis narrative to justify big printing, um, and, and the bonds that are needed. Um, the other is you get the companies to, um, build it.

out, and we're seeing different strategies from different companies. So, you know, Meta's going all in. They're saying, "We'll lay off our staff, um, we'll invest in data centers, um, and, uh, we'll build out the infrastructure that can let us lay off our staff, um, later as well."

Um, Apple's kind of sitting back and saying, "Well, I think they, Apple probably thinks this is an overvaluation bubble. Uh, we'll, we'll scoop something up in, in the distress." Um, but the reason that it's happening is the same reason everything happens. U, the entire US GDP is these AI buildouts. Mhm. >> Um, and, uh, the entire war is about getting the energy that's needed for these AI buildouts. Um, the trade war is about the rare earth and the, the vital minerals. So, you could look at the entire world and say, this is everything that's happening in the world. While it looks chaotic, we can see what's being built here. It's, um, you know, if you, if you can push up the price of LG, and America can become the largest exporter of LG in the world, then a few companies are going to significantly benefit from that. Now, the average American is just paying higher gas prices. Uh, we get a CPI print of 3.8%. Now, we got PPI that's looking like it's going to 6%, and now the bond markets are looking like refinancing the debt is going into a, a, a loop that justifies a big print. Um, so you've got all the markets there. Um, but I think America is actually doing what, in what Goldman Sachs has always done, and I use that figuratively for the whole investment banking industry. >> Um. >> I mean, I don't know if you, I don't know if you have the ticker right in front of you here, Simon. Looking at the 10-year yield right now, it's knocking on the doors of 4.7%. >> 4.7%. Wow. Okay. So, it's really ripping out. >> Yeah. It's at 468 right now. It looks like it's heading towards 47. >> Yeah. >> Pretty soon. >> So, that in real time. >> Yeah. So, I've always said throughout the entire Trump administration, 4.5% on the 10-year yield. Uh, when it goes above that, that's when you had the capitulation on tariff policy and 5% on the 10-year yield. That became very symbolic. Sorry, 30-year yield. Um, that became very symbolic throughout the whole, um, Iran war. >> And it's 519 on the 30-year right now. >> Yeah. 519. So, we are at, um, territory where we're leading towards the Fed is the savior. Um, so, if we're getting significant selling of those bonds from foreign purchases, more and more of it's happening via Cayman Island. We're getting a decoupling between the Bank of Japan and the Federal Reserve. In the Middle East, we're getting FX swap lines in order to stop people selling their bonds. Um, in Europe, they're trying to ink a trade deal that kind of locks in more of these, um, um, euro dollars, um, in order to stop Europe, which actually, if you combine China and Japan together, uh, Europe combined has more treasuries. Um, so, if you, if you have the Gulf countries, uh, Japan, China, uh, then you have, um, Europe and UK, that's the entire foreign, foreign bond market. Uh, they are all in distress, you know, with the exception of China. Um, so, all of those potentially, if you keep the clo, the Strait of Hormuz closed for long enough, uh, you get more and more high-priced oil contracts, which puts those economies in distress. When you put those economies in distress, they could end up selling their bonds. If they sell their bonds, then yield rips out. That makes the government debt unsustainable. Um, you have a stimulus check through increased war expenditure through the Department of War. Uh, and you've got what looks like record growth GDP. Uh, you got a stock, stock market that is absolutely ripping. Um, you got a debt market that is reaching unsustainable levels. Um, because while the, while the, while the Strait is closed, the dollar's strengthening in DXY terms, but with the other commodity currencies, it's not doing so well. >> Um, and so you're really, really engineering a crisis that can justify a significant amount of Fed purchases, um, of bonds. And we had the first print of the 30-year, um, bond auction at that above 5%, and we've been ripping ever since. >> Yeah. I mean, just, sorry, didn't mean to interrupt you, but, uh, just year-to-date wise, we are up 33% on the Thompson Reuters Commodity CRB index. So, 33% in commodity prices within, what, five months? >> Yeah. So, now combine, combine that with this, the entire economy is the complete infrastructure of AI and robotics buildout, structurally overvalued capex, and you've got the '99 internet boom and bust with the 2007 financial crisis yields with a 1973 energy crisis. Um, and the stock market is taking all of the value. Um, as soon as you get the Strait open, we get back to the weakening of the dollar again. Um, we get to the reversal of that trade. And so, what have we got coming up? Well, we've got two of the biggest IPOs in history. If I'm Goldman Sachs, I don't want the Strait, um, you know, I want to time the announcement of the opening of the Strait, um, with probably post-IPO or with the IPO. >> And so, if you get the SpaceX IPO at $2 trillion, massively overvalued, you get the OpenX AI at a trillion dollars, all of these secondary trades have been happening. It's quite interesting that we got the announcement from OpenAI that they don't recognize some of these secondary trades. So, they're just deleting some of the stock from people, which is wild. >> Um, at the same time as justifying the force through of Clarity Act, the tokenization of securities. The SEC announced it today. um, which solves those secondary market trade issues in terms of a, a ledger, but it just so happens to make it where the custodian owns the asset, you own a token, which is a claim on a share, and that share is, you know, you're getting further and further away from actually owning your asset. Uh, combine that all together, and I think you've got the perfect internet.com boom and bust, um, narrative. Now, don't get me wrong, um, I do think that they will bail it out, and I do think that many of these companies are the most significant companies in the world. Um, to, they're concentrating like, I think we're almost at 50% of the S&P is, is the, is the, is the Magnificent Seven companies. So, half of the value of the stock market is this play, is this tech data, um, play. Uh, and, and so, you, you, you can, you can see what's happening here. Um, Trump needs GDP, and they're maximizing for fiscal dominance. Uh, Trump needs to roll over the debt. Uh, the rates is the, the issue. Um, but, uh, you can get the Fed to buy them, and, and I think we're, we're, we're leaning towards that ginormous print, the biggest print we've ever seen. And what, what narrative do you need? Imagine this. Yeah. You've got China with open-source AI, extremely efficient energy infrastructure, um, significantly lower value for 90% of the efficiency. Um, and an AI arms race that says this is a national security, um, issue. So, now energy is a national security issue, and AI is a national security issue, and semiconductor chips is a national security issue. Um, if you were to engineer anything, you would line up, you would do the IPOs, uh, try and time the announcement of the opening of the Strait to create a ginormous pump of those valuations. Um, you'd probably exit your significant positions into that pump and bubble. uh, and then you'd pull some of the levers with China that can structurally repric and justify why for national security, um, you need to blow the debt, um, you need to issue bonds, uh, you need to get yields down, um, and, uh, and you need all that value to be, probably the largest wealth transfer in human history, combining the global financial crisis, um, the energy crisis, um, of, of previous cycles, um, and the dot-com boom and bust, which all of those led to very, very large wealth transfers. >> Yeah. So, we've covered the China summit of last week with President Trump and the rest of the US envoy. Today, like we mentioned at the start of the show, we do have President Putin, um, meeting with President Xi, as well, the Russia-China summit. The agenda is, uh, bilateral relations, economic cooperation, including energy, p, energy, like Power of Siberia 2 pipeline, trade, and key international regional issues. Dozens of agreements are expected to be signed. Uh, here's some footage of, uh, President Putin's arrival in China. Let's go ahead and pull that up for your right now. So, it's kind of all out, is, um, is meeting him. >> Uh, let's see. >> Yep, there he is. Yeah, some very subtle differences there. You could see it towards the end there. Uh, President Xi reached out his hand to shake Putin. I, I don't think he did that with Trump. I think Trump was the one who initiated the handshake, uh, last week. And I wasn't paying attention here in the middle. I think. >> Did he go meet him on the plane? At >> I'm not sure, actually. >> Yeah. >> Well, I, I'll look, I'll look into that here in a second. But we also have a message from Putin, um, as well, talking about the summit. So, let's go ahead and cut to that too. Do you have audio, by the way? I'll go. Yeah. Foreign speech. Foreign speech. Foreign speech. So, what do you see about this meeting here, Simon? What do you read between the lines here? Um, in contrast to last week's meeting with President Trump. >> Yeah, I was unable to see the video. What did the >> Oh, it didn't show >> so much. >> Was it not playing? >> Uh, no. I just couldn't quite see it. I just got on a strange screen because I'm on the move at the moment. >> Oh, okay. So, yeah, he was, you mean, Putin was basically talking about how China and Russia will cooperate with all these international agencies like the UN and the Shanghai Cooperation Council and seek to foster peace with, you know, through regional disputes and issues and things like that. >> But what, but this boilerplate stuff, but what do you see as the >> purpose of this meeting? We kind of outlined it at the start of this segment here, but >> yeah. Um, from your perspective, reading between the lines, how do you view it? >> Yeah, I mean, well, prior to this, the Paris Siberia 2 energy corridor between China and Russia, um, was a project that's accelerating. Um, I think that's going to take some time. So, it's not something that immediately comes into play. Um, but that permanently draws China and Russia closer together in terms of energy ties. Um, now, leading up to this, we had UAE leaving OPEC. Um, now, I think people interpret this wrong. I covered it last time on your show very briefly. Um, you had UAE getting access to the Federal Reserve FX swap lines at the same time as leaving OPEC. Um, that is the mechanism of having significant control over the pro-dollar. Um, so the petrodollar is that you price your, you know, you price your oil in dollars, you recycle into purchasing treasuries. Um, and then with the interest on those treasuries, you have to make forced investments into US defense contracts, and then US gets a defense base that you get to kind of show a pretense to your people, um, that this is about defending the energy infrastructure. Um, and we got a very, out of this, we got a very symbolic, um, that that doesn't work. There is no defense. Um, you know, Israel gets defense, but the Gulf countries don't. Um, we got the FX swap line, which is, don't sell, um, the treasuries, which, um, you know, they're, they're leveraging in order to get access to the Federal Reserve system to be able to stabilize their financial system with dollars, um, by creating new dollars, um, with their own currency as collateral, and that protects the peg. Um, and then they left OPEC, which is the other half of the pro-dollar. That was what was the agreement of how much oil would be released, and therefore how much treasuries could it purchase. Um, now, 11 months prior to this, we had BRICS energy agreements. Um, and so, while the energy technology has not been built yet, there was leading up to this an announcement that they're no longer doing a BRICS currency. The unit has been shelved as a project. Um, probably because of the potential to manipulate and create a currency war. Um, but instead, they're focusing on tokenized energy infrastructure. Um, and remember, both Iran and UAE joined BRICS with Egypt, um, and Saudi Arabia as observers. So, Saudi is the holdout in the negotiations. Then we get escalation, um, and now we're getting, I would say, I would say, you know, a progression towards, um, what the more aggressive sanctioned countries and the corridors that they built. Now, remember, a vital node in that is UAE, and so, yeah, most of Iran's sanction evasion infrastructure happens via UAE. Um, at the same time, they're becoming the center of crypto, and Trump is receiving most of his funding and bribes from Saudi and UAE and Qatar, whether it be Boeing planes, whether it be, um, crypto stablecoin deals, and whether it be, uh, you know, um, the Affinity Partners Fund, multi-billion dollar fund. So, you, you can see how this is breaking up of the pro-dollar, and, um, this is Trump, Putin, and Xi Jinping, I think, transitioning the world with Trump representing elite financial and technical power, um, from both AI banks and, let's call it, the World Economic Forum, um, that encompasses the test. Um, this is OPEC is the old order. The petrodollar is dead, and now we have the BRICS energy agreements, and we're going to be moving, um, and transitioning towards that, and the closure of the Strait of Hormuz has achieved all of the goals to take out, um, and renegotiate every single contract. Um, so, I still see this as way more coordinated than hostile. Um, and the thought of nuclear war. Um, that all of the targets and infrastructure rebuild that will come as a result of this is going to be funded by the BRICS corridors, the GCC corridors, um, the World Economic Forum elites, um, and obviously the most important node in the sovereign wealth fund is China. Um, so, we're, we're going to be leading to very big rebuild contracts. Uh, we've already started to see the testing and flexing of the Pakistani, Saudi Arabia, uh, defense deal. Um, we've already started to, you know, we, we're seeing this transition is, is to me, a managed transition. Um, and Russia and China and Putin and Xi Jinping are just people that they, uh, you know, they, they deserve more respect. And even the whole Trump not being able to talk about Taiwan, uh, is very, very symbolic of this new power structure. Trump, you're not allowed to talk about Taiwan. Um, you have to avoid the question. Um, and, uh, and that is that this is very, all of this together is very symbolic of the new power dynamic. And remember, these meetings don't get anything done. They're just public demonstrations of what you want to signal to the rest of the world. The deals are all being done continually. They take years and years and years. You don't turn up at a table and negotiate a deal. Um, you take years with lawyers and, and everything. Um, these are just, we have progressed significantly, and now we're ready to signal to the rest of the world so that the rest of the world can now repurpose their strategies around this new world order. >> Uh, just an FYI, by the way, did not meet Putin at the airport. It was the foreign minister, which is standard protocol, um, over there in China. So, you know. That's that's pretty much how Trump was greeted last week as well. >> Okay. Well, yeah. I mean, you know, that's some equal. There's no symbolism there, then, you know, they're treating them as an equal process. >> Well, you also had this news, um, that broke today, talking about how NATO was prepared to deploy itself onto the Strait of Hormuz should it not be open by July. Now, I mean, what do you think of that news? >> Interesting. Um, I just see, you know, European Union and, and NATO as the same power structure that controls America. Um, but you have good cop, bad cop, just like we have with UAE and Saudi. Um, but with Europe and, um, you know, US, same elite, same system, but good cop, bad cop, so you can play both sides. You know, we can have record energy sales in America, and we can have significant investment in renewable energy and subordination to, you know, and then crises that make government more subordinate to private, corporate, transnational capital. Um, all of these, like, make that, um, more powerful. So, I interpret that, and I'm hearing this in real time. So, just shooting ideas on the fly, probably marking a deadline which coincides with some of the IPOs. So, if they're saying we're going to get involved by July, um, I, I interpret that initially as, okay, we're going to use Europe in order to put a deadline that's going to push all of the deal-making, set the deadline. Um, we get the IPOs done. Um, and, uh, and that will be the pump, the next phase of the pump in the market if we haven't had enough of a pump in the market. Um, but it, you know, if you get a real deal, um, then, um, you know, you're going to get the, the stocks are going to go through the roof. >> Yeah. Well, buy the, buy the rumor, sell the news type of event as well. So, not quite sure where it goes. I mean, we are in uncharted territory at these valuations. You know what I mean? I don't want to, I don't want to give advice and everyone starts pumping into stocks because it really could be one of those buy the rumor, sell the news events as well. >> Oh, I mean, that's been the case for a lot of these use cases here. I, I know you don't see a kinetic war on the horizon or like the one type of war that most people have in mind when it comes to World War II. But I want to get your thoughts on this as well. This is Trump talking about the ballroom. I think this is out recently. He says that the ballroom is, it will include a hospital, research facilities, and meeting rooms for the military that are being built below the ballroom. So, let's go ahead and see what he has to say. >> I want to take a look at the complexity. These are all different rooms down here. They're building a hospital. They're building, it's a military hospital. They're building a, uh, all sorts of research facilities. Also meeting rooms and rooms that go hand in hand for the military using the ballroom. And the ballroom is really a shield and protecting all of the things that are built here. Uh, this goes, as you see, it's already up to the ground. Uh, this goes down very deep. You get a better view right over here. This is down because we've already done these floors, but these are already down two floors. That, that is down about six stories deep. That's big stuff. Normally when you build a ballroom, you build it flat. You just build a ballroom. It would have been built. The complexity of this, and again, it's all knit. It's all knit together between the drone proofing, the missile proofing we have, uh, and the drone capacity upstairs. We can have all sorts of military up, whether I, I hate to use the word snipers, but we have great sniper capacity. It's built for our snipers, not the enemy snipers, our snipers. And because of the height, we get a, a very clear view of everything all over the world. >> I mean, doesn't it sound like he's building a bunker here? I mean, are they, because it sounds, the reason why I brought up World War II again is because, I mean, doesn't it sound like they're building a military fortress underground or underground military bunker for like, uh, coming war or something? What do you make of what he's doing with the ballroom here? >> Yeah, definitely sounds that way. Um, my analysis is that the bigger risk to America is not external war, but it's internal war. Um, and so I believe that the tactics that the deep state has always used abroad in order to stoke civil unrest, um, is the same tactics that I'm seeing a lot happening within America right now, across Europe, and across the UK. Um, and so I think the, the goal of that is to, um, weaken the government at the federal level, fracture into, you know, a smaller and smaller, um, infrastructure at the state level, most likely. Um, but the overarching goal is to have the justification for a police and surveillance state. Um, and so we are moving to that pre-crime, um, social media scraping, arrest based upon predicted behavior, palunteer social credit scores, um, enforcement through drones, robotics, terminator-type of environment, like we, that is what the end result of the AI data center buildout is. There is not enough energy in the world to power that. So, they're building capacity to power it. Um, and so I believe that, um, elites know that the next enemy is the domestic population. Um, and they also want it to be, uh, because that's how you get the end game of Bank Secrecy Act, Patriot Act, Genius Act, and now Clarity Act, which provides everything you need. So, expect to see manufactured domestic violence, um, followed by a large buildout of the privatized prison system, um, in order to have more capacity. Uh, because when the military can't make profits through enforcing a global hedge, then they have to make up for lost revenue at home. And that's why, you know, you'll see, I think, beta tests of escalations like in Cuba, drain it of its energy, have a manufactured crisis, people can't, you know, can't function. Um, and, uh, roll out technology to solve their problems, just like they're doing in Gaza. Just like they're doing, I think, next in Cuba. Just like they'll be looking to do in Venezuela. Uh, just like they're beta testing in the UK. So, we're getting lots of, we're getting lots of nationalistic uprising events hosted by intelligence agencies assets. Um, and you're seeing anger built up, built up, built up, and immediately a new contract with Palunteer is signed. A new digital ID is brought in. A new central bank digital currency, digital euro, is brought in. A new policy, um, that utilizes algorithms in order to galvanize people into radicalized communities. Um, and the net beneficial winner of that whole thing is the technical industrial complex. And so, you'll see Elon and Peter Thiel and Alex Cop, um, and, uh, the PayPal Mafia, um, stoking a lot of this on X. Um, so, to me, when I, when I see this, this type of thing being built, I don't see it because we're going to enter into World War II or there's going to be anyone's going to fire at America. Um, America's going to be attacked from within. And if Americans don't do it, um, the intelligence agencies will try and manufacture it. >> Wow. Well, Simon, it's always a pleasure having you on, my friend. Um, and anything else you want to talk about before we wrap up? >> Uh, no, I think we covered it all. I think one thing we could either cover next time or, um, is, um, it was very interesting that, uh, Iran took this opportunity to roll out a parallel financial system that circumvented Lloyd's of London through insurance, circumvented SWIFT through Bitcoin, um, and circumvented the previous order of maritime, uh, protection, uh, through a new type of insurance contract using technology with multi-signature Bitcoin wallets. Um, we can cover that another time, but, uh, it, it is another show that when, uh, the assets of Iran were seized, they stole the stable coins because they could call Tether and say, freeze them. Um, they stole the, the money that was hacked through alternative currencies and shitcoins because there was a foundation, um, called Arbitrum, that was able to freeze, um, but they couldn't, uh, take the Bitcoin. Um, and so Iran still has its Bitcoin, and it's been mining Bitcoin with nuclear energy to build an internal legal system. Again, none of this is sanctioned circumvention legal advice. There are serious consequences to violating sanctions law, and you'll end up in prison. I'm just explaining what's being built here. Um, and at the same time, we're getting these alternative financial systems, the opening up of the Saudi market, the new central banking system being built between Iran and Oman, the new FX swap line, central bank digital currency, embridge network, um, and, uh, sanctioned circumvention rails that are happening through UAE. All leading up to the opening up of Iran that seems to be that they're going to be, um, the new leader in a Bitcoin-based financial system. Um, and so that's, it's very, very interesting. Um, follow the money. Um, we are in currency wars. Uh, and those currency wars are being determined, and they're not quite the same as the theatrical kinetic wars that make the headlines. Does it look like Iran will be, I guess, for a lack of a better term, the hegemon of the Middle East? I mean, is that where things are heading towards? I don't think that's China's plan. I think China's plan was to divvy up power between UAE, Saudi, and Iran. Um, and China has the capacity to control that, uh, because of the financial rails and oil rails, and divvy up the pro-yuan and pro-dollar. Um, but I don't think China would ever allow Iran to be the hegemon. Um, I think it wants GCC, Iran, and financial rails via UAE, and all of them integrated into the Chinese system, um, with the ability to be an intermediary because they don't want world reserve currency. They want a weaker yuan. Um, but they still want the dollar to provide those pricing rails, but the control grids, as you get to the Middle East and West Asia, closer and closer to Chinese control grids, that's why they're accumulating all the gold, and that's why the gold is leaving London. That's why the gold is leaving the West. Um, it's migrating eastwards. Um, because, you know, the, the, the Chinese system has effectively got a gold backing. Um, the Middle Eastern system is switching from oil to LNG, which changes a lot. Um, AI and robotics is the global system, and the West is being subordinated to the World Economic Forum, financial industrial complex, and technical industrial complex, and they're all working together as one transnational capital block, is how I see it. Yeah.