The Great Capital Rotation: AI, Bitcoin Crash & The Financial Industrial Complex | Hard TalkLIVE

Hey, hey, sovereign wealth builders. Simon Dixon here and welcome to another episode of Simon Dixon Hard Talk Live. Um, we're not in the studio, so the sound's not perfect, maybe the internet's not perfect, but the show must go on.

Today, we're going to be discussing the great capital relocation. Um, we're going to be talking about AI, we're going to be talking about Bitcoin, we're going to be talking about the financial industrial complex, and we're going to tie it all together as usual.

Um, so as always, we're broken into two parts. Part one, I'm going to be giving some updates of what happened this week in terms of the AI bubble. Uh, we had a big crash in the price of Bitcoin. Uh, maybe that's your first time. So, we're going to be discussing Bitcoin financialization. Um, and we're going to also be going through the k the great capital relocation, how to understand these trends. And then in part two, we're going to go over to an interview that I recorded in the studio, so the sound will be a bit better. Uh, but that's going to be the managed transition. Um, and we're going to be going through War Bitcoin and the end of the pro dollar um, which was on Bitcoin Archives uh, podcast. Um, and um, so let's jump straight in with part one.

Right. So, we're going through a bit of a a managed capital um reform and uh I think this is done if you're a long-term listener or new. We got a lot of new subscribers. Um but when we follow the money and you'll get used to this format if you're new uh we always trace it to the flows that are happening within the financial industrial complex and the different mod u you know markets. um what I think we're witnessing in general terms while we zoom in every single week but when we zoom out this is not a collapse in the traditional sense so everyone's always looking you know for the collapse it's not a panic it's not happening all of a sudden but I believe that America as the global empire is being basically repositioned in the world into a regional power while we transition to a world of multipolarity And that's not adversarial where the financial industrial complex represents America. It's absolutely managed when I follow the capital flows by the financial industrial complex who are looking to asset strip the west, reposition it through fiscal dominance and then manage capital outflows into a multi-polarity. And we've always said you need a big event, a theatrical big event in order to manage that transition. Um, and so this is something that's happening in cooperation um, with the financial industrial complex. And that takes decades. This is something that will probably only happen once in our lifetime. We have to look back in history to understand, you know, what this is and what this looked like because we don't get to experience more than one of these. And so this is cyclical and generational but because we've never seen it we can only look back in history and then adjust accordingly. Um, but they you got to really think in terms of politicians think in terms of election election cycles. I've often talked about the different in game theory we have finite games and we have infinite games. So countries that operate within a non-democratic system, they're able to develop a 100year strategy. Everyone always gives the example of China and the CCP. They went through a century of humiliation and they put together a century a centurylong strategy. That strategy went through Maoism and communism over to the Dang uh reforms over to Xi Jinping right now and everything in between. Um, and so but within democracies uh they are by design a delusion in terms of who's actually in charge because the financial industrial complex can play a game in decades. You know you don't reform or regime change or have an election uh for the f key players. You know Larry Frink gets a long term at Black Rockck. Um Jamie Diamond gets a long term at JP Morgan. Now, they can be regime changed if they don't cartel to the shareholder class. Um, but as long as they're playing game, um, then they're able to keep their role. Um, but in terms of politics, they have an even shorter term time frame. In the case of the US, they have a 4-year election cycle with a two-year midterms. And so anytime they try and deviate from the financial industrial complex strategy uh they have to get funding and they have to bow down to the lobbies and so this cycle ensures continuity of strategy. So most people don't know who's in charge. They're distracted with the politicians, the presidents, the prime ministers, but behind the scenes it's capital uh that controls the world. And that capital um has board members and those board members have a bit of a you know a rotation between politics between the fick between different companies. Um and as you go up the compromised network in these cycles um you're able to be a reliable player and as long as you continually um you know add more value to power uh then you go higher up the leverage cycle until eventually you may be in a position where you have to be in an Epstein network where there's vast compromise in order to climb you know and capital is what determines that and so capital inflows um you know their flows in increasingly drive uh policy. You have a network of non-governmental organizations, you have think tanks, you have lobbies, um you have technology that drives capital portfolios. And because I've got so many new subscribers today, a bit of this is going to be a bit of a recap, but we're going to dive into everything that happened this week and make sure we tie in the Bitcoin crash, um the flows with the AI bubble, um the deal that was announced with Iran, on off, on, off, um and everything. But just as a quick recap, I want this to be educational, too. Now, the place where I paste all this is simonixon.com, so you can catch up on old ones. You can binge there. Um, and uh, there's summaries of everything as well. You can pick the subject that's right for you. But just as a quick recap, what is the FIC? What is the financial industrial complex? Well, it's the asset managers that manage your pension, your insurance, your endowment funds, sovereign wealth funds, um treasury budgets, um whatever it may be. Um it's investment banks that securitize and financialize individuals, Silicon Valley startups, um mature companies, uh tokenize, securitize, financialize derivatives, um and every single commodity, uh currency, um debt, bond market, capital market. It's also central banks and that uh they they provide the infrastructure that socializes all the losses when the risks go off the scale and privatize all the gains. Um and eventually you use the government through the corporate debt markets as a piggy bank uh where you control policy through lobby, you set policy through non-governmental organizations and corporate sponsored um think tanks. Um, and then you have an auction where politicians, Senate, Congress, uh even in the deep state, you have the judicial that can be bribed under certain circumstances depending on how far into the deep state you get. Um you also have corporate treasury networks and so institutions like Burkshshire Haway um like Apple that have vast reserves um that they look to invest. uh you have the private equity industry. So distress buying of assets um you can manage it as a portfolio. They're often public companies with the shareholders with the same shareholders. In the derivatives markets you can profit from markets going up and down um through the hedge funds. Um, then you have the ability to destroy a country um you know take out a country, take out a leader um rebuild as well. Um, and that's all financed through and executed by the military-industrial complex. Um, but they're all public companies with board members. They have access to the intelligence networks, MI6, MSAD, CIA.

Then you have the technical industrial complex, the tick. Um, now I've created a new one which I'm just going to try on. You let me know in the comments section whether you think this is appropriate. Many people are asking me what about big farmer? What about um you know other types of uh the food industry which is increasingly becoming subordinate to FIC? Well, I put this into a new category that to try to create a bit of a catch all. Um what I call the subscription industrial complex sik. Um and so the sik is essentially the business model that the fick want you in. They want you earning enough money so that you're paying all of the subscriptions to their companies. And they also want you through mortgages to be a debt slave, through student loans to be a debt slave, through credit cards to continually be paying their interest on money that they get to create at the commercial banks. Um, and they want you delaying consumption but locked in to subscriptions. And this is really why they do the food poisoning industry as well, the poison industrial complex, let's call it, uh, because they want you subscribed to a therapist every single month. um subscribe to prescription drugs, uh subscribe to deep state illegal drugs and their drug trafficking networks. And so really the whole thing is to destroy you into a debt slave. Uh they make you think that slavery is not a thing. Um, but if you're subordinate to them, you're in debt to them, you're subscribing to them for everything. Then you are the perfect customer for them. And it's why they create universities and colleges in order to build these subscription model debt slaves. Um, and put them through the cycle. Um, and so they don't necessarily, you know, sell products. They essentially sell subscriptions, uh, whether it be a mortgage, whatever it may be. Um, you know, they don't create owners. That's the most important thing from it. The World Economic Forum, you know, Kyle Schwab very famously put out a video and said, "You will own nothing and be happy." This is a subscription industrial complex. Um, they want to create subscriptions. Uh, they see you as a product. Uh, they want to generate reoccurring cash flow. They want to create money as debt because they get to do that. They effectively want you to be a collateralized uh, tokenize everything. And right now AI is pushing that. This moving to the tokens model. So everything you do is subscribing to tokens particularly um within these corporate structures as well. In any way the main thing is to monetize dependency is to monetize access. You will own nothing and be happy. And why it matters is effectively the FIC is increasingly um you know the one that's set in all the terms and it increasingly prefers uh these subscription revenues and these long-term because they can raise finance against long-term subscriptions. So, if they've locked you into a 20-year mortgage, they can use that as collateral, package it up as a mortgage back security, financialize, securize, and when those go wrong, they can sell those debts off or put it in extreme circumstances like the 2008 financial crisis on the Fed's balance sheet. The Fed is then owned by the banks. the banks get a 6% dividend and they get to create money, take risks and put it through this flywheel um of debt slavery um and debt repayments um and they can then if they're managing your assets like your pension they can charge custody fees but you hand over the voting rights to them. This was the ETF, you know, exchangeraded funds. You know, don't pick what shares you are. Give me all the money. I'll get the voting rights. I can have some proxies. But this also gives us influence where we can put a board seat and we can put, you know, we've like Black Rockck has 20,000 board seats. Each board member is across 10 different companies. And then you can manage policy because the executives like Elon Musk, like Tim Cook, like Jamie Diamond, they work for the board. The board works for the shareholders. Uh the shareholders are the capital and so it is the shareholder class that sets the terms and then that trickles all the way down uh to the government and then transnational networks like the central bank of central banks, the bank for international settlements, the international monetary fund, the sovereign wealth funds that are co-opted into this uh transnational um capital structure. they get to charge asset under management fees and so Black Rockck is managing about $14 trillion of capital. Um they get reoccurring AI subscriptions which is the new thing. Um even one of the most important softwares is a software called Aladdin and that's where $25 trillion dollars of assets of central banks, treasuries of governments, uh sovereign wealth funds are all being used and uh you know using the AI of Black Rocks Aladdin and so if you ask it for a scenario plan um then everyone can be told the same scenario plan. for example, how do I allocate capital if the straight of moose is closed up until June, July? Um, and so this way you can dictate capital flows and you also have the ETF money and you also have the managed fund u money. Um, and you create this illusion of who's in charge and everyone focusing on politics rather than capital. Um, and this is why people get, you know, fall into this trap time and time again. cloud subscriptions as well, uh, financial subscriptions. The goal is to basically make it where you don't own anything. Um, and they get to control the asset. Um, this is what they're trying to do with Bitcoin at the moment. This is what they did with gold. Um, the goal is reoccurring cash flow where they custody the asset. Um, and they also get to use nation states as platforms. So countries no longer serve their people, they serve the platform, they serve the fick. And this is the lobby structure that I talked about as well as policy um being written by think tanks and corporate sponsored uh non-governmental organizations. And so America in this transition, the USA is not a country. It is the host of the financial industrial complex. Prior to this, it used to be the UK. The UK was bankrupted through this process. They privatized all the assets through the British East India Company. They used the Bank of England to socialize the losses and privatize the gains. Um and when the government was bankrupt through the guilt market, they the bond holders were the Fick. Um, and so they use this structure to use the military-industrial complex, the largest naval fleet in order to change the order, acquire resources, put them in the investment bank, financialize, securitize, um, and, you know, and indoctrinate people into this belief that free market capitalism is doing this. It's an invisible hand. Um and uh really when you go back pre-Adam Smith, you realize that there was a lot more to these economic theories and economic thoughts when it was combined with sociology. Um and uh off the topic anyway. Um, but anyway, the US in this world when it's collapsed into a regional power in a multipolar world um is just really a military fortress. Um it is a for rent militia much like ISIS. You can rent ISIS in order to u make it look like they're invading for religious reason reasons, but they work for the intelligence network. MSAD, MI6, CIA. The soldiers are just people that may not know who they work for. Most people don't know who they work for because they can't follow the money all the way through. Um, but the US military is a militia for rent by transnational capital as it was in Britain, as it was in the the Dutch Empire when this model um was created. It's a military fortress, it also is a legal fortress. So, you know, by being able to influence policy, um, by by being able to deregulate, by being able to control, um, they create a legal fortress where they can hold their intellectual property, but then push it through via some of the British Empire, um, army, um, sorry, uh, islands, you know, like Cayman Island and British Virgin Island and various other things. So it's like a a fortress for intellectual property. Um, where even through regulations there's regulatory capture. You know they just do the crime and pay the fine. That fine pays for the towers of the SEC. It also keeps out competition from the smaller players and it monopolizes upwards where you know um you can have this regulatory capture. Um, now the whole thing with the military um, fortress is you get to pretend it's national security. When national security applies, you can use word like terrorism, domestic terrorists. When you use these words, you're able to opt out of all of the constitution, first amendment, second amendment. Um, and the further you can go through, you know, these different carveouts, um, you can you can basically use the word national security to in um increasingly um protect you know the financial industrial complex, the FIC. You can also use the budget of the Pentagon uh to create defense IP, privatize it, manufacture entrepreneurs um and then use DARPA funding um and these different CIA intelligence networks or Department of Defense VC networks in order to push out technology uh privatize it um and then you can privatize the gains from the things that the people paid for. they get the the debt um and the stock market gets the value. Um, so you get these defense IP Palenteers a classic example uh SpaceX uh Tesla as well um Google um you can look back at all these histories um and you can see a a a fantasy entrepreneur story of being created in the garage while intelligence networks are basically siphoning off. Then you have different jurisdictions like Israel in order to do the real illegal stuff that you need to pretend is someone else. They get to have this plausible deniability story. And then you can use things like the Palestinian Laboratory to commit genocide crimes against humanity. Um, it benefits, you know, you create religious narratives. Um, and uh, and that allows you to recruit an army, get population growth, and then funnel the IP back, and it goes back into the US stock market, laundered and cleaned while all the crimes against humanity were committed um, globally um, through these proxies like Ukraine as well. Um, and uh, you know, um, so yeah, you you you can use that as well.

AI infrastructure is the classic tool that's being weaponized right now into this AI bubble. You can weaponize chip manufacturing um, in order to negotiate the world order, the multipolarity with sovereign wealth funds that want to build data centers. Um, and so strategic supply chains become important. um you get these uh you know sanctioned um different types of assets um and companies that become geopolitically strategically important and therefore you can use the media in order to create a narrative of why you should bail them out uh while people you know you it's too big to fail for example um one of the biggest one in the AI bubble at the moment is TSMC um so they're building you know um they're building uh these uh these these centers in Arizona. Um, but that's China's territory as well. And so while China the re last week I or a couple of weeks back I covered the whole China Shanghai meeting. Um, but you can build out these Arizona fabs using TSMC if you can strategically get enough um leverage over that. Then you can put billions spent through money printing um which was the chips act. The people pay the bill through the national debt. You pump the stock market. You pump the share price valuations. Um, and really you get this concentration of wealth that happens over time. Um, but you know they're relocating some of this chip production because it's a national security so that it can be negotiated into this multipolar world. The growth may be elsewhere, it can happen anywhere. Um, but the asset protection remains in the US and America. So effectively, just like Britain, when people look at Kostama, they're like, "Does he work for us?" Or is his job to create a narrative that means you can print money, buy weapons, send them to Ukraine, and make us think we're defending democracy while people are struggling, while pensions are being, you know, downgraded. Uh, while the, you know, services, infrastructures not being built, you asset strip the country. You use it for what it is and the people still buy into politics thinking that something else is happening. So this is the future of the US economy. very similar to the UK economy. Um, you may have the growth there, but the growth isn't distributed. The reason that they do that is because they use the figure GDP, gross domestic product. Gross domestic product can be government spending. It can be consumption, whether it's by the rich or or someone else. Um, and it can be your net imports or exports, you know, your your capital account surplus. Or deficit. Now America runs a capital account deficit which means that trillions and trillions of dollars in fact right now almost $70 trillion of the flows of money into the bond holders the equity holders real estate is actually foreignowned and so this is how the bond holders rule this is how the shareholders rule um and this is how you get this situation where fick is able to take over through globalization financialization tokenization securitization Um, but if you look at the figures right now, GDP is currently, it's been revised just this year in America from 2% to 1.5%. Now, there is a rule in this debt based Ponzi scheme. It is that you have to have growth higher than the average cost of the national debt. And so America right now is going into having its growth, its GDP revised down from 2% to 1.5%. The 70-year average GDP growth in America is 3%. So what's propping up that? Well, it's actually just AI and data centers, as I've been covering on previous broadcasts. And so the whole economy is these AI and data centers. Um, the average government debt cost right now, last time I looked, was was approaching 3 and a half%. So if you've got growth that's being revised down to under a percent and it's all AI data centers and that requires significant investment from transnational capital and private credit and the financial industrial complex but the average cost on the debt is approaching 3.5%. Then you're in a doom loop asset stripping phase. That's when the politicians have to give a narrative that make the people think something else is happening. That's the MAGA narrative. We're rebuilding our manufacturing while they're building robotics and AI data centers and that's the whole economy. You know, it's not rebuilding a manufacturing base. It's creating the technology that's going to replace the humans. And that's all the growth. And so the government um is there to create, you know, the the the the narrative. and the government in what we're at right now which is called fiscal dominance is where the government spends more and more and more into propping up the stock market. So one way of doing that is create a war and you can get massive debt massive spending into the military-industrial complex. You can create a national security issue i.e. China's going to win the AI arms race. Or we need to get data centers in space before Russia dominates space. Um, and so you can use the media in order to push out that narrative. Then you can increase government spending. In the Trump administration, this is called the big beautiful bill. And so in this time period, basically government spending is up from 27% of gross domestic product to now 38%. And so that's approaching essentially how China runs its economy, which is the narrative that Americans are told is the enemy. You know, communism they call it, whatever you want to call it. Um, it's not communism. Um, but you know, this is the the the increase in a fiscal dominant stage. increase the debt, put all the value into the stock market, which the rich benefit from. While those that are turned into collateralized debt obligations, they just increase their share of the national debt and the inflation goes at a higher rate than their wages. That's when you get the environment that we're experiencing at the asset stripping phase.

Now if you look at it American right now the consumption the consumer economy is about 68% of all GDP in America. So consumers have to spend which is why you get the sick the subscription industrial complex because they're trying to even launch 50-year mortgages. They're trying to make you consume into the future so that they can raise finance and use you as collateral in the financialization markets. This way you can sell revenue forward um by having these assets by getting you to spend into the future. It becomes an asset in itself that they can financialize and securitize. But where is all the spending coming from? Well 50% of that 68% almost half of the economy let's say 40% of the economy is driven by the top 10% of wealthy people in America. So the economy is for the rich at this stage. And if you're not in that club, then you're not part of the economy. You know, they can put you in a concentration camp like they uh you know, what do they call them? These um uh these different outskirts places. I've forgotten the name right now. Maybe someone in the comments, embankments or something. I've forgotten the name. It's not it will come to me later. um you know and and you saw that um and you see a lot of that um and then what do they do? They sell drugs and gambling into those communities which are deep state operations protected by the CIA. So when they they say they're coming after drugs um they're not. They're just changing the supply chains because that's how the deep state is funded. Drug trafficking, human trafficking, weapons trafficking. read a book called Operation Gladadio by Paul Williams to understand how this is done via the Vatican bank and various other things through the CIA. So whenever you get a narrative, they try to put an ethical cloak on what's happening to make you buy into the system for longer. But what what else do the top 10% get as a benefit of them spending their money because they're in this club where they own 92% of the stock market's wealth. So 92% is owned by the 10% which is where the national debt is propping up. And so this is when you get this extreme K-shaped economy, this extreme wealth inequality where effectively the bottom 90% are increasingly spending on the sick, the subscription industrial complex. That's your mortgage, your housing. If all your income is going on your housing, your food, which they're now even turning into a subscription service, your energy, then they can price you out of the market, they can make you compete, then they can tokenize it, do carbon credits, various other things, um, and interest payments on your debt. That's most people. And so you work for the sick, which is owned by the Fick, the financial industrial complex. And so this is the asset stripping exercise. This is corporate concentration. And who owns these large multinational corporations? Well, it's in the name. It's multinational. It's transnational capital. It's global in nature. So America is just a, you know, a a platform as is UK, as is Australia, as is Canada, as is the European Union. If you can put them all into one package, European Union, and then you can install unelected officials that work on NGO funded corporate policies, um, then you can regime change. You can do as you wish. Now, it doesn't always go to plan, which is why you got the derivative markets. You hedge your bets. You bet on the market go these operations going well badly and then you make fees every single time anyway because it's your money. It's your pension that is actually paying for this. the collateral is you if you're on the wrong side of this cycle. So 1% um of um you know these uh these these uh these fees that that are generated um and these terms that are generated um are propping up 82% of all revenue right now. Um, and so you've got within the corporse corporations you we're concentrating wealth up to like 10 companies now 40% of the stock market is like seven technology companies. Um, and so you know the top 1% of all the firms they generate 82% of all the revenue. So what we're doing is we're concentrating up into monopolistic power, asset stripping, and resetting the world order while you think changing the politician matters. That's why I've always said you vote with your money. Opt out of that system. But the top 20 firms in America generate 50% of all sales. And in the AI bubble, you're starting to see right now that they're just sending contracts to each other. Every time they print a new contract, they get to print it forward through creative accounting and call it GDP, which increases their valuation, which helps them subordinate the executives through corporate options. And so, you know, most people just don't know who's in charge. Um, and so corporate profits rather than um, you know, are basically near their record highs at the moment as you enter into this fiscal dominant stage. um the economy has never been more um concentrated in terms of its history and that's exactly what happened to the British Empire, the Dutch Empire when it was at the British East India, Dutch East India Company asset stripping phase um and then they changed the host to America with the Federal Reserve.

There is a savings crisis across America and the saving rate is about 2.6% 6% at the moment and that's the lowest since 2022 you know postcoid um as a result of the e economic shutdown. Consumer spending is rising faster than income. So people are spending on debt. They're substituting through debt if you're on the wrong side of this. Or they're on the other side of this and they're benefiting through that consumer spending in their share prices. And so Americans are is increasingly spending their savings right now in order to survive. Which turns them into a subscription industrial complex product sick. And that is the debt crisis that we're experiencing not only on the governmental level but also on the lower half as well. And so the economy is for the rich right now. That is what it is. And those are the asset holders and your debt is propping up their asset value. Now you're probably if you've got any savings, if you're in savings, you're holding it in a bank that's losing value as a result of this fiscal dominance money printing and the banks get to create the fiat currency every time they issue a loan. So they need a debt in order to create that currency. And so this emulate you know this kind of um um interest plus the you know the mandatory spending through prescriptions is projected to basically exceed the tax revenue by 2031. And so if you combine that all together, if you take the entitlements that the government needs to spend, then you add the interest, then you add the monetary spending that has already been committed. This is going to pass tax revenue by 2031. So Black Rockck knows this. The financial industrial complex knows this. So what do they do? They asset strip and they reset the order. They look for the next growth cycle. they engineer the next growth cycle which requires taking the assets deploying them while America seems strong um and then negotiating into a multi-polar world and that's what I think we're witnessing right now many countries around the world know how the game is played because they've been on the wrong side of the bomb they were installed many leaders were installed by the FIC through this process but net interest is project is projected to reach 5% of the entire GDP. Now that is catastrophic levels. And it's not growing at the same speed and the only growth is data centers which is replacing humans with AI and robotics. So the real big question is what is you know the actual plan here? And if you don't know the plan, then you're going to be just on the wrong side of this because the politicians ain't going to tell you and the media is going to tell you it's something else because the fick owns them as well. You know, they can control media. These are public companies. Many of the times you see a private source says that may be CIA, that may be MSAD, that may be MI6, it may be any of these things. So what is the actual plan? Well, the actual plan is to reset the world order. All of the capital flows are telling me that. That's what I've been covering over the long time. If you're new to the show, welcome. You can go and binge in the previous ones or you can carry on. I try to do a bit of mix of what's happening at the moment. But the current thing that I've been covering week by week by week was I believe the engineered operation of the closure of the straight of form which was partly done by fick because it was insurance of shipments that required guarantees from either the IRGC in Iran or US on the other side of the blockade. And so the fick was able to determine through insurance that they're not willing to insure. Now you can look at the cause and effect and we can debate that but I believe that those in power wanted the straight of hormones closed and Trump works for that power and so when you get all these delays it's just narrative delays because the fake once it's closed so they can outpric people they can asset strip they can reset the world order and then they can negotiate into this new world order and so the straight up from muse was the management of the transition which has been a multi-deade operation. Every single crisis becomes an asset stripping exercise that concentrates wealth higher up into the FI. Whether it be long-term capital management, whether it be the dotcom boom and bust, whether it be the global financial crisis, whether it be COVID, um whether it be the Russia Ukraine um you know invasion, whatever it may be. Um, but one answer may be that the financial industrial complex requires periodic geopolitical events to manage a transition. And I believe from having read many many different covert operations that these events are engineered. And you can either believe that or not. They can weaponize it as it happens. But the game is a foundation of a Ponzi scheme called the dollar. you know when it's integrated into the fick and the central banking system. This is mathematically guaranteed to happen. You know it's inevitable. It's predictable. It's guaranteed. It's happened in the past. We just haven't seen it. We're living through it right now. And so the the temporary closure um you know of the straight of Hammoose um has basically created exactly that opportunity. repric everything, force majour contracts, um use the war in order to destroy and rebuild. If you've read a book like Confession of of an economic hitman, you'll be very familiar with this model. War is engineered because they profit from the war, financing the war, selling the weapons, the the average person pays for it through money printing, and then they get to rebuild, renegotiate, and get the resources. And this is a model I've covered um on Simon Dixon hard talk for a long time. And so energy shocks are perfect for this. They create the volatility. Volatility is how the fick make money through fees. Customers come to them to manage the volatility. And uh you know this is the volatility that creates the policy flexibility and the ability to um control the system to a greater and greater degree. So crisis is built into the system. it's engineered. And we know that because that's how US foreign policy, British foreign policy has always worked. You know, you engineer militia groups, you engineer war, you regime change, you infiltrate revolutions, you manufacture violence, you use the media to create a narrative, and then you go get the resources, and those resources end up in the hands of transnational capital. But you call it national security or you call it nationalism. And people have a very warped vision of what is actually happening here. But policy flexibility basically creates the opportunity for capital reallocation. And this was a big one. This happened in the British Empire with the Sue Canal and now it's happening with the closure of the straight of moose. So why does this actually matter? Well, this temporarily interrupted all of the capital um you know relocation strategy that was underway prior to the closure of the straight of the moose. There was the strategic weakening of the dollar relative to other currencies relative to gold relative to silver. There was the the yields on bond markets were going up which is makes the more stressful situation. And you had the stock market and the national debt going up as well. And so this sets up the game for fiscal dominance. And that is the strategic weakening. Effectively, you're you're sacrificing dollar as world reserve currency which shrinks America into regional and then you can negotiate into multiparity. Trump's done all of that. you know, he did doge, which was giving all the data to the technical industrial complex that was needed for this police and surveillance state global surveillance, rails and grid and AI center. Fiscal dominance paid for it through operation Stargate. And it was the the the you know, Black Rockck portfolio companies that benefited from that. You then had the big beautiful bill which increased the military budget, technical budget. and created the set of circumstances that helped finance in their crisis moment because there was a private credit squeeze which we've been watching and is still going on right now. Then you had tariffs which made everyone negotiate into bricks. It signaled to the world America is an unreliable partner. and it reset every relationship for the financial, technical and military-industrial complex. We then had the release of the Epstein files which strategically weakened how this system works. But it didn't reveal the main players at the top of the fig. No one was accountable to it. And then we had the closure of the straight of moose in this Iran war. If you've been a long-term listener, you'll know that I said that Trump was selected for this role to go to war with Iran. And so, we were expecting this. And we've been covering that as well. At some point, I got bits wrong. You know that I thought this would be not as big as it was. It would be like the 12-day war. But you can go through the history. I public I publish everything on the blog. But what has happened? capital has now moved into um everybody needing to hoard their oil which prices you know which means that you got this oil price spike and then you had all the other types of energy liqufied natural gas which is a key component of this AI electric vehicle trade. You got increased defense sp spending. You got um and um you know you had safe haven assets that people were pushing those capital outflows into. And so prior to this war you saw that emerging market stock markets were outperforming the S&P while the S&P was being pumped up by the Fed, ETF flows and media manipulation and narratives. And the same was happening with the currencies backed by commodities. So you can see that when you follow the flows and follow the money, this is where I developed my view of what I thought was actually happening. This is the fiscal dominance asset stripping phase. And so before the straight of moose, what was actually happening? Capital was being rooted towards emerging markets um into multiparity. You had yuan settlement volumes were on the rise. You had bricks financial rails that were being built infrastructure into a multipolar world and it was expanding. You had this massive gold accumulation by central banks that was accelerating and had a really really big pump. You had US capital dominance was effectively being gradually weakened even though the markets were strong. You had foreign stock markets outperforming. You had capital outflows via ETFs. You had currencies that were strengthening relative to the dollar depending on, you know, where the financial industrial complex, the Vic was taking us. So my thesis was that these tariff revenue the closure of the straight of form moose these different events um um you know and once it fully reopens again we're going to see normalization into where we were prior to the closure of the straight of moose but you got the reset and I covered it week by week by week of what was happening as we covered on simonixon.com you can see that on my YouTube channel, but the long-term transition was interrupted by the closure of the straight of Hormuse. We get this global reset, energy repricing, much of the crisis that we're going to see from shortages and various other things. But it was not reversed. And so once we get once the Fick is ready, we'll get the opening of the straight off a moose. Now, what's it doing? is negotiating into the rebuild contracts within Iran. And so trans this is the transition that we're witnessing, but it uses these crisis in order to get leverage. And um watch exactly what's happening into Iran right now. Um, what you'll notice is that um Iran is essential um in both the energy side um and many of the other so it it was selling discounted oil to China and sanctioned countries were performing this vital role of discounted oil being purchased via UAE which have been covering the different flows. And that discounted oil was only able to get dollars to gold, gold to oil, and then that gold would end up in Shanghai, which is one of the different flows that we've been doing. But when we get this opening, we're going to have a future monetary system. And you can see all the events that happened. We had the OPEC, which was half of the petro dollar. We had this CBDC network called Mbridge. we had OPEC having to reric much of his oil, reroute and I started to see that there seems to be an orderly fashion. So America and Russia were getting the LNG contracts. Then we get the opening up and when America gives sanction relief to Iran there'll be a managed transition outwards integrated into OPEC while the rebuild contracts of Iran the Gulf countries all the damage is rebuilt which means reorders and a reordering of the monetary system. So what I always look for is what is reconstruction economics. You know whoever pays this was the IMF model is the one that gets the leverage. And so geopolitics when you have these wars the rebuild contracts really really set what the world order looks like. So many people find this hard to believe, but you can co-opt factions of power in order to have more of a theatrical war. The deaths are real. But the strategic targets are very strategic and I think we're witnessing one of those right now. US bases, energy infrastructure, you know, in Gulf countries within Iran. And we see we see that throughout the new routes and the new ports and everything. And so the long-term thesis I've been covering is that the Middle East is moving to a change, regional stability rather than the forever war because it was always put into war by design. And so what did we have this week? Well, let's get into what happened this week. So US strike some energy infrastructure within Iran again. Iran retaliated by attacking strategic targets within Bahrain within Q8 and within Iraq and those are going to need to be rebuilt, renegotiated as well. We also had a little bit of remember whatever the media says that's what somebody wants you to believe. It doesn't mean it's true. It means that some faction of power is trying to make you believe that. And so we had a really bizarre story about Netanyahu who was thanking Congress for something called section 224 which formalized basically the covert relationship. Both Israel and US are subordinate to military which are both subordinate to FIC. And so the Mick uses Israel as an outpost and radicalizes uses the religious narrative in order to create groups like ISIS, alqaeda to build the IDF through saying it's the you know Jews need protecting. And then the neocons in America use evangelical Christianity to radicalize people into thinking that you need to protect Israel. And so, you know, these power structures are more than happy to weaponize religion. And so they formalized this USIsrael military integration. They were already integrated. Come on. MI6, MSAD, CIA, these are the co-authors of many of the operations, whether it be from 911 to what happened in Libya or Iraq or Afghanistan. these manufactured wars that were part of this model of destroy, rebuild, acquire resources destabilize you know and these were all integrated anyway. But it's kind of like a Mosoff moment. I've said that in order to manage this transition, you need to acquire Israel and all Israeli assets. So I've been looking at all the privatization programs. I've been following the money, the economy is out, you know, is is decoupling from the stock market just like it is in America, just like it is in UK, just like it is in the European Union. That is the asset stripping exercise. And who's dying it? A lot of the capital is coming from the Gulf. So, this is ownership via acquisition. And we're seeing

That happen through UAE, India, and other stuff. And I always cover uh the different deals, but look at what's happening with Iran in this deal. There was an announcement. So we get this back and forth memorandum of understanding. Ignore everything that's happening publicly. That's how to appease the relative people, whether it be the um, you know, the FIC via the Israeli government appeasing Israelis, or the FIC via uh IRGC or the Iranian government, um, appeasing um Iranian factions, uh, or whether it be uh the FIC appeasing, you know, the neocons, um, and the evangelical Christians, um, that have been pushing up through military funding.

Um, this is it. It's not left or right. Trump's not taking on the system. Trump is more FIC aligned. I've always said, OB, you know, um, Biden was more maligned. Um, but Obama was one of the people that this is a continuation of strategy. If you look back at the previous deals, there was the JCPOA where effectively $1.7 billion that Iran, prior to the revolution, was going to spend on the US military-industrial complex, was seized. Um, and so there was a deal via JCPOA in order to release that money. Now, the reason it happened is because the court was about to say that this is unlawful. And so to get ahead of it, Obama signed a deal, um, and there was a release schedule, um, that ties upon it. It's not a gift.

When you hear about these reparations or this funding to Ukraine, it's always done via a fund, via contracts. Even all the funding to Israel, the funding to Israel is spent back into the MIC. Um, the funding that happens with Saudi Arabia, they have to, the petrodollar itself was, you put, you price oil in dollars. You then, you're not going to hold dollars in a bank because that, that bank is a Ponzi scheme. So then you have to buy treasuries. Then you become a bondholder. When you're a bondholder, you are in the Federal Reserve system. Once you're in the Federal Reserve system, the yield you receive is spent into defense contracts in order to prop up the US stock market. And you have this cycle. And so when people stop buying, lending to the US government and start buying equities, which is the sovereign wealth funds are doing right now, they're acquiring the country that comes with influence, voting rights, uh, the ability to uh, control the FIC or partner with the FIC to a certain degree in a partnership. So none of these things are gifts. That $1.7 billion wasn't a gift. It was Iran's own money that was sanctioned. So sanctions are a weapon, confiscate the money and try and get a regime change that then spends the money to prop up the US stock market, keeps the debt-based Ponzi scheme going while the Americans pay the bill. It's a money laundering operation. So these frozen assets were the settlement. That was the negotiation. Um, and so, you know, this, what happened under Obama is that there was some cash delivery, uh, and then that happened and continued into the Biden administration. Um, and all it showed is that the US was the dominant hegemon at that time. You know, the US dollar had no alternative rails. That's why all these alternative rails were built in order so that Russia, China, Iran could push back against the system and Iran could try and get some of its money, get some sanction relief and end up in the situation that it's in right now.

And so what you noticed in the memorandum of understanding, and when an investment banking deal is done, you have a letter of intent, a memorandum of understanding, then a term sheet. Term takes a long time to negotiate. Memorandum of understanding makes sure everyone's on the same page. Letter of intent is public communication, uh, for the first time. And so I believe the MOU's already been signed, but we need to get the right narrative for all the parties to give back to their respective people to manage this transition because really, it is the shrinking of the US, the handing over of the Middle East into West Asia. It's a major, major deal. But part of it was that there was a $300 billion reparations that I guarantee you, just like the border peace deal with Gaza, it will be structured as a fund. And with a fund, who are the equity holders? If it is the Gulf countries, then this is decolonization. This is resetting of order. Who funds those Gulf sovereign wealth funds? Who's the largest purchaser of energy? It's China. So, China's part of transnational capital. So, when you see a $300 billion reparations, it's not a gift. I guarantee you, um, and we don't know the details yet, but I'll be following it. It's a reconstruction fund. And I'm pretty sure that it's going to be financed by the Gulf and by the FIC. And so, this is not direct cash to Iran. When you set up a fund, um, you, what actually happens is that you end up with contracts. And what are those contracts? Those are investments. What are those investments? It is the opening up of Iran to the FIC on GCC terms normalized by China. This is how I was able to create a long-term projection for what was happening here over the years. Um, and this is why I knew that this wasn't business as usual. This wasn't the forever war model. This would end via Saudi Arabia's hold-out clause of Palestine, Israel being a useful asset to the MIC.

Now, if we weren't in that environment where China was rising, then I wouldn't have predicted any of these things. I would have said this is just the forever war and Israel is the proxy for the military doing committing crimes against humanity, destabilizing the region, um, and then negotiating these different uh contracts. But what is this going to be? Um, this is going to do it. Well, it's going to be, Iran doesn't have the money to fund all this infrastructure rebuild. Um, so this is going to be the finance and the rebuild, and it's going to be ports, it's going to be energy infrastructure, it's going to be everything that was destroyed. It's going to be telecoms, it's going to be housing. And you know who gets paid with that, you know. Um, and uh, this is the engineering that happens. It's going to be the same firms that have always done this, you know, the the Halliburtons. It may be done covertly via a fund, but that's the purpose of these funds, to obfuscate what's happening here. And so, most people just won't know it until it actually happens. Uh, but it will be the energy majors that are going to be rebuilding. It's going to be probably defense contractors. It could be a mix of China, Russia, and Western uh transnational capital. Um, it will be telecom providers. Um, it will be, and this is the core thesis. This is the model, um, of it. And this is how you get regional stability when you're meant to get regional stability rather than the the forever war model.

Um, so how does it actually work? As I said, as a quick recap, the first invoice is the war. The war is profitable. I said this is a stock market stimulus. When people said it would crash the stock market, I said, "No, this can have impact on other markets, the bond market, but then that can lead to a big print, socialize the losses and privatize gains, and then you can bankrupt small businesses. You can push wealth up to the K-shaped economy. Um, and you can destroy some of the consumption and push the sick, the subscription industrial complex." But the second invoice is once you, the war is done. That's the reconstruction. Um, and that's just one transaction. And that's how this model works. Follow the money. It tells you the truth. Ignore the narratives. It's not about saving women's rights. It's not about protecting the Iranian people. If you believe any of that, you're a useful idiot for power and you're paying the bill. And the two invoices of the war and the rebuild is going to be paid for by you. Uh, while the profits will be socialized and privatized into the FIC. And so what we're watching is who gets the contracts. And when you look at who gets the contracts, you can see what the world is looking like. And ETF flows, this is why I follow the money and everyone else is, you know, focusing on the geopolitics. May get it wrong. I may misinterpret the data, but you can certainly get it better than listening to the media um and thinking that the politicians are telling you the truth. Who gets the fees? Who gets the rebuild contracts? Um, don't, who you know, don't ask. Is Trump an idiot who won politically? His job, they don't care. His job is to find a narrative that makes him look okay. But he works for FIC. He's middle management. His job is to get the contract for the FIC. Um, and so you should all always be asking um, you know, who gets paid commercially. And once you figure that out, then you can see what this was really about. Um, and so this is really capital reallocations into a multipolar world which helps us understand what's coming next. And this can be understood that before the Straits of Hormuz um, you know, disruption happened, um, all the flows were going into emerging markets, um, and that was accelerating this transition to a multipolar world. US, basically, um, the fundy outflows, and you can look at that via following doing what BlackRock ETFs are. Um, and it was BRICS infrastructure that was being built. Um, and that was what was expanding. It was yuan settlements that were rising. It was the dollar that was going down in value. Um, as a result of these, it was Gulf partnerships that were increasing. You had energy within Texas that was 100, you know, 70% owned by Qatar Energy and 30% um by Exxon. Um, you had subsidiaries that are benefiting from um, the likely refinement of Venezuela, which was a subsidiary of Saudi Aramco in Saudi Arabia. And so my view was that the Straits of Hormuz was the temporary disruption that interrupted um all of these trends. And once the energy markets um, you know, they'll go back uh to where they were, there'll be higher prices, um, but it will transition back to what was happening before the issue. But every crisis concentrates power upwards, um, and you get the force majeure on contracts and everything that. And so emerging market capital flows will resume. Um, BRICS integration will resume again. Yuan settlement um will grow and resume again as it was prior to that. And so this is multipolar capital um that will resume um and the Middle East is going to be rebuilt. And the reconstruction contracts um in that phase are going to really determine what was really going on here. And I think it's going to be built by the Gulf Cooperation Councils, um, the financial industrial complex, and they are increasingly aligned in order to buy the end of the forever war, which requires a Palestinian state. And then Israel has to change its role to what it has always been, which is the MIC. The MIC needs to be compensated with a new war, which is Europe and the police state in America. Um, and so stability has always been the price that you have to pay. That's the negotiation. These take a long time. Um, and that's the historical context of this. That's what the Dutch East India Company did. That's what the British East India Company did. And that's what BlackRock and Vanguard and State Street are able to do today through this new structure is neo-extortion. Um, and it's uh, you know, it's um, it's how the system actually works. It's managing um, you know, the the the change um, and managing the decline of the US empire because the growth can come from somewhere else and you can have profit from regional stability in the West. Um, the mo, this is, you know, the modern parallel of what they did before. Um, and um, you know, it's kind of the the same process um, if you study history, but we find it very hard to think that that actually happens today because it's different tools. Um, the tools that are used today are capital markets instead of ships. And that's why I always follow the exchange traded funds and currencies and FX markets, uh, because the ETFs are really how BlackRock, and I covered it earlier, technology called Aladdin AI, is able to reallocate massive, massive, vast pools of capital. This is done through exchange traded funds, and exchange traded funds make capital relocate. Um, and it is frictionless now. And so if everyone's handing their money over to BlackRock, State Street, and Vanguard, and they're all shareholders in each other, and all capital, all the big sums of capital is using Aladdin technology, managing $25 trillion of assets, then ETFs is your vehicle in order to do what they used to do just with currency wars. You can still do currency wars, but you can um reallocate capital accordingly, accordingly. Um, and BlackRock and Vanguard today can move billions instantly. Um, and so this is why Aladdin AI is very, very important. It's BlackRock's portfolio allocation and its risk management platform. Um, and this is the new British East India Company. Let's call it the American, I don't know, the American transnational capital experiment because it doesn't have patriotism because it's global in nature. Um, and it's uh, one of the most intentional capital allocation systems that exists in the world today. And most people don't even follow it or um, follow those types of flows. Um, and this is how I, you know, this is what we cover. This is what we do here. It monitors trillions and trillions of dollars of outflows. Um, who's it used by? Pension funds, sovereign wealth funds, as I said, um, in basically influential corporate treasuries, um, asset managers of all of all types and all sorts, um, and it is people using their ETF positions, um, scenario planning, and what Aladdin can allocate between US equities or emerging markets, um, and the different types of equities, treasury bonds, different debt structures. So you control debt capital markets, equity capital markets. You can even do it with corporate bonds. Um, and that's why they issue share options in order to capture, you know, and through board seats. You can even do it with commodities. This is gold ETFs, commodity ETFs, defense ETFs. You can do it at the sector level. Um, energy ETFs, AI ETFs, technology ETFs, AI infrastructure ETFs. And this is why the markets are not efficient. They're manipulated. They're controlled. They're manufactured. And who you think is in charge is not in charge. You've even got semiconductor ETFs, one of the most important commodities in the supply chain. Country ETFs, even Bitcoin ETFs. And this is why I was always warning people about the different types of impact of the Bitcoin ETF and people were cheering it along. Um, we got a very good example. Ever since the financial industrial complex have been involved in Bitcoin, they built a Bitcoin complex, which I've been covering throughout, um, that is used in order to centralize as much Bitcoin as possible. And you fight back with self-custody, um, you know, and uh, and so follow the ETF flows. Um, and the ETF really reveals what capital is accumulating right now. And that tells you what the geopolitics is. And what capital um is also distributing and defending because media defends share prices that are geopolitically and strategically important. Um, what different types of sectors are being favored over others? What sectors are losing liquidity? Um, what risk is increasing? So you can look at the Bitcoin ETF inflows and outflows and see what the FIC is doing. Now, it doesn't mean that they're trying to destroy Bitcoin because they have a use for Bitcoin in custody. They want as much Bitcoin in custody. And so why are they doing that right now? And this is how you have to have a longer-term strategy while everyone else is trying to trade, make quick money, but you don't control the capital. It's the capital allocators that you, um, you can, you know, get a much, much better narrative as well. Um, what narratives are being funded? Which narratives are being um, you know, uh, uh, abandoned at the moment? You, you know that that is determined by ETF flows. Example, outflows in India, but many people thinking UAE is being destroyed. There were inflows into UAE um during this war as well. So that was a movement from retail to institutional. Whether institutions were dumping in India, that means that there's a structural realignment that's happening here. Um, and so what we are seeing today is a realignment. And so AI is attracting all the capital. All the capital needs to build the data center infrastructure buildout. And that is sucking up all the capital because this is probably the biggest capital requirement um that I've ever seen. That semiconductors that need, you know, Nvidia chips and TSMC and AML and all the different things, Samsung that we covered um in previous episodes. But it's all the, all the capital is being attracted into data centers. And that's the source of the private credit market that is working right now because people need to sell assets in order to buy new assets that can create liquidity challenges. So, um, defense is attracting capital right now into this wartime economy. Energy is attracting capital. Uh, gold was attracting capital. And these things were happening prior to the war. So the capital knew what was coming next. Um, and so did the gold, um, capital and the sovereigns. So did the Bitcoin ETFs, um, and so we can look at the different um, you know, uh, outflows that are happening right now. And you can see that this is an accumulation phase. If you were dollar cost averaging, then you would have been, you know, you got two ways of doing this. You can either try and have your capital in the right place at all times, which is a very hard game, or you can accumulate into weakness, knowing that Bitcoin will be needed as part of this multipolar transition. And so that's why I don't worry about it. And I've always told people, the easy strategy if you want to be sovereign is own more Bitcoin every month regardless the price. Then it doesn't really matter. As the price goes down, you get more Bitcoin for your money. As the price goes up, your fiat currency net worth goes up. Chillax. Um, you get to do it in self-custody. Um, and there's all the, you know, the boycotts and everything you get to do as well. Um, but you could see that there were emerging market allocations leading up to this as well. And all the things that I said that made up the analysis. Uh, the, the important distinction is um, when ETF allocations change, um, and when it is combined with a narrative change, then you get capital flows that change. And that's what drives markets. Um, but, you know, at the moment, Bitcoin supply, um, you know, if the Bitcoin supply is not changing, that's what's different about Bitcoin with everything else. You can engineer um more debt, more equity. Um, in gold, it's, you can find more gold, but, you know, it's, it's pretty fixed at 2% per annum. Um, but with Bitcoin, it never changes. The supply is known 100%. So, you can only financialize and create paper Bitcoin, which is what I was saying Wall Street is doing. And this is why Strategy emerged out of nowhere. This is why the Bitcoin Treasury Company emerged out of nowhere. This is why we had Operation Choke Point 2.0 to take out the ecosystem. Um, and you can see the connections between those that were taken out and intelligence connections. I did that with Celsius later when I did the understanding uh FTX and various other things. Um, you can see the banks that were taken out and what happened. You had a regime change as Biden took him out into Trump. We're going to be crypto capital building out the police and surveillance state pretending it was going to be done Bitcoin strategic reserves for the government. No, they're not there to protect the government or help the government. They're there to asset strip the government. And so there will only ever be 21 million Bitcoin. Um, but what are the key lessons that we can learn from this whole thing? Um, ETF tells you where the FIC is allocating capital. And so, um, self-custody Bitcoin tells you um where, you know, the monetary scarcity resists against the FIC. And so all of my audience, they own Bitcoin in self-custody. They boycott the FIC. Um, and so the final, you know, lesson is that Aladdin can direct capital. And the reason they wanted to do that with Bitcoin and create the Bitcoin ETF and then centralize as much Bitcoin as possible through MicroStrategy and Strategy is so that they could build a Bitcoin derivative complex around it and do the same game so that they can decide when to allocate capital into and out of via Aladdin into Bitcoin. And so once you know that, you know that the short-term price is being manipulated. Um, I don't think they want to lose that because in a multipolar world, Bitcoin is an important tool. There's kind of two tools you can manage this transition. You create bubbles, and then the Fed can determine how capital flows, whether you bail out the system, whether you socialize losses, privatize the gains. But also you can push Bitcoin flows, gold flows, which is what they, what happened leading up to this as well. And so ETFs um can direct capital, narratives can direct capital, but um they cannot, you know, create more Bitcoin. So instead they created a narrative, and that was what Strategy is. And I've been saying that all along. People get very upset about that. But when you follow the ETF flows to understand the cycle, um, you understand that self-custody Bitcoin survives the cycle because they can't control it. It's the definition of what Bitcoin was created to do. So all they can do is try and get you to give up your Bitcoin, hold it in custody, borrow against it, trade shitcoins, do an alternative version, um, trade futures, per options, whatever it may be. But at the same time, when you look at this, because you know, people say, I don't do it because it's manipulated, but you can't change the supply. And that is unique as an asset class, which is why you can only have a long-term strategy. And so the Fed manages this transition that we're witnessing right now. The tools that they have, they have interest rates. So right now, Trump regime change the Fed. We have Kevin Walsh. Kevin Walsh is via his shareholders of the Fed. He's the chairman and his board, as it were, the FOMC, which consists of a bunch of banks um and also, you know, um lobbied politicians that represent the FIC. They sit around a table and the chairman, Kevin Walsh, reads the script. People think he controls the world, you know, people think he's in charge, but his chairman is to read the script. He can do things. He has power. He can influence it. Um, but he has the tools right now. So, people think like the Treasury and the Fed emerging and Trump's taking on the Fed. I mean, the whole game is set by the Fed at the moment. You can determine whether to do quantitative easing or quantitative tightening, move to a covert quantitative easing by buying short-term bonds. It, you know, when the bondholders are, when those rates are being pushed up because there's more and more inflation, um, then it's only the Fed that can buy it through QE. They have different types of liquidity facilities to repo markets, increase liquidity or decrease liquidity. Um, they can provide, you know, market support to um treasuries at the end, or they can decide not to. This is what happened in 1929 when they created a bubble and then they uh decided to blow up the bubble. Um, and the Fed engineered that whole process that transitioned from the British, you know, empire over to the American empire after the Fed was created as part of its function. Um, and uh, it can also, you know, influence um volatility as well, whether there's a volatile transition or a smooth transition. Um, and um, you know, it can socialize the losses. It can privatize the gains. And guess who the Fed used in order to determine when it gets bailout money, how to allocate it? BlackRock's Aladdin. Uh, guess who, uh, the Treasury was using during COVID during the stimulus checks? BlackRock's Aladdin. So it feeds into the technical industrial complex and FIC algorithm that determines the capital outflows and of course, they self-build out their own concentrate wealth upward. And I believe right now the AI bubble, as it is a policy tool, it is being used right now to engineer this transition. So the AI bubble can become a policy tool. Do they bail it out? Do they not? Do they increase the balance sheet? Um, and that's what I think is happening right now. Um, so the bubble, you know, burst can effectively um decide whether there's going to be QE, whether there's going to be um some kind of emergency facilities, whether there's going to be a liquidity injection, whether there's going to be a market intervention. And the playbook has always been inflate bubbles, as we did in 1929. This can be financial bubbles. Um, you allow them to, you know, blow up as they did with mortgage-backed securities, which, by the way, the CEO of BlackRock, Larry Fink, created those mortgage-backed securities as he was part of the Bear Stearns Lehman Brothers network that got regime changed and concentrated into JP Morgan and BlackRock and various other flows. Or you can allow a correction to happen, which is where you can justify by the intervention. And this is the concentration exercise. So the Fed's in charge of the game, but who is the Fed owned by? The Fed is owned by the banks. And the Fed is the largest shareholder in the Bank for International Settlements, which is transnational capital, um, which has a network of central banks that are all using Aladdin as well. And so this is why I believe that the FIC is the one doing the transition to multipolarity, um, and it's trying to restart the cycle. And so my thesis is, and we'll keep um analyzing the capital flows, is that the Fed does not stop the transition. The Fed is managing the transition. The Fed acts as the stock arbitrator, as it were, uh, while the financial industrial complex reallocates the capital, which is done via the equivalent of the Dutch East India Company, the asset managers as well. And so where does Bitcoin, you know, fit into all of this? And what's happened this week? How does it come? So let's go through, you know, today, capital has been rotating away from Bitcoin into AI. Now, that doesn't mean that that won't happen. Um, that that doesn't change in the future because in a transition to multipolarity, you go through the cycle. Tomorrow, capital can rotate from AI back into Bitcoin. And so some people see them as correlated assets. Some people don't. And people get confused. It is a tool. The centralized version of Bitcoin is a tool for FIC once we entered into this world. The self-custody Bitcoin is a tool for you and everybody else. And this is why ETFs matter. Uh, these ETFs, as I've said, is a capital allocation mechanism. It can help you determine the future um based upon these algorithmic um flows. Um, and the, the, the machine basically currently is pulling money out of Bitcoin. You could see that um, there was about $4 billion leading up to this of capital outflows. What does that mean? You don't know when they're going to change the engine. So you can buy into weakness and relax. Um, you don't control these flows, and they can later drive these massive inflows into Bitcoin, which is what they were doing prior to this. That is a mechanism for them trying to use corporate treasury companies, which was created by another FIC node like um Strategy, um, and um, uh, Can Fitzgerald, which tried to create others as well, um, and they can determine the point of sovereign adoption as well. And so the key points is that today's Bitcoin weakness um does not mean that there's an inevitable fleeing of capital. It is cyclical in its nature. Um, yeah. So it just really, what can we read right now? The ETF Bitcoin outflows just tell us that this is where a capital is being directed right now, out of Bitcoin and into AI. And so today's ETF flows are leaving Bitcoin, as we said. Um, and that's why the price is being engineered down. And at the same time, Wall Street vehicles are accumulating as much Bitcoin as possible. So we got more going into, you know, companies like Strategy that just build a whole complex around it. So tomorrow's ETF flows can leave AI and they can come back to Bitcoin. And I believe they will. Uh, the same allocation narrative will be weaponized. Um, but they don't control the long-term price as well. And so once you understand this, it's not about being a trader, it's about being a longer-term investor and harnessing the benefits of this. Um, and uh, you know, Bitcoin is currently a source of the liquidity for this AI bubble. Now, what does this AI bubble actually need? AI is currently, you know, where all the liquidity is. Um, long-term that can change, um, because remember what I told I talked about how China has the frontier model, which is 10 times cheaper. And this capex may be completely, you know, bad allocations of capital. Um, and um, and that's when self-custody Bitcoin allows you to not be involved in these structural rug pulls, um, where the paper version of the asset is not backed fully by the actual asset. Um, and so the allocation vehicle can just change. The underlying scarcity does never change though. Um, so the AI bubble is basically right now, leading up to this, it needed, it raised about $400 billion in six months. As I said, it was the source of all growth. America would have been in a recession without it. But right now, leading up to the SpaceX IPO, which I said last week when we went through it, is essentially an AI company dressed as a space narrative to justify the valuation. It needs another $225 billion still required, and the IPO goes live next week. Anthropic released their, uh, filing, and OpenAI is coming up as well. Um, last year, only six of that amount was raised. And so we need six times, 6x that amount. That's why we're getting Bitcoin ETF outflows. Now, on the narrative side, they're saying it's going to zero. It's all dead. Um, but approximately $4 billion was the outflows in May, which is why this capital rotation was happening. Um, because it, you know, it was Aladdin was reallocating towards AI. Now, you could have done that, or you could have just bought Bitcoin into weakness. Value your wealth in Bitcoin. Hold it in self-custody. Boycott the system. Don't leverage. Don't borrow against it. And the further the price goes down, the more Bitcoin you can get with your fiat currency if you're earning fiat currency every month. And that's a way that people that want to exit and boycott the system um they can do that rather than cap playing the capital reallocation and following all the flows and doing all the stuff as well. It's the easy thing. It's the equalizer that everyone can do. Um, so the capital needs to come from somewhere, and it comes from other people selling their assets. So AI is attacking all capital right now. That's what we're witnessing. Um, and Bitcoin is part of providing some of that liquidity. And so my idea here is to try and help you not panic. Um, I've been through 16 years of this. Um, in fact, I always said I've seen my $30 Bitcoin crash to $3. I've seen my $20,000 Bitcoin crash to $3,000. I've seen my $69,000 Bitcoin crash to $17,000. I've seen my $125,000 Bitcoin now crash 50% to $62,000. Um, and the strategy that equalizes everything is the people that genuinely are wealthy were just buying it regardless of price every month. Um, and not caring about any of that. Um, so, so I want to cover um Strategy for a bit. It seems like it's a company. It's always whenever I just share how the architecture of Strategy and how it's a tool for centralizing as much Bitcoin as possible for the financial industrial complex. Every time I cover it, I get a rapid following of uh celebrity worshipping um crazies on X and they get very offended. Um, you know, I just discuss architecture. I follow the money and explain what it is. And it is a tool that if it could succeed, it would centralize as much Bitcoin as possible. If it could, it would centralize 21 million Bitcoin. It can't, but it would if it could. And that's not good for Bitcoin. And so people just need to understand that if you are thinking that Strategy is um your friend, um it is a FIC tool and it is an arbitrage vehicle. Owning Bitcoin in self-custody is Bitcoin. Owning Strategy is supporting the financial industrial complex in creating an arbitrage tool. Um, there was recently, I think the um Jeff, one of the team from Strive, one of the products of Strategy, he did a debate with Coffeezilla. Um, and I think he's the chief risk officer. And um, I also tweeted out and put some posts out there. And Matt, the CEO, came in and said, "Why don't you do a debate?" Um, and our team is seeing if we can make that happen. I've accepted the debate publicly. Um, I think they wanted us to go on their channel. Um, I'd like a moderator, and we'll see if we can make that happen. Um, I've got nothing to hide. I'm more than happy to say this. It's just architecture. It is what it is. People want to add all this emotion and celebrity worship and all this stuff on top. Understand when you follow the money, you understand compromised networks, leverage networks are built in order to subordinate. And anybody that works for Strategy, whether they know it or not, is a subordinate of the financial industrial complex. This is a Wall Street vehicle as part of a complex designed to creating the tools and derivatives and arbitrage vehicles that can manipulate the price of Bitcoin um via this uh Bitcoin paper suite of products. Um, and so what is Strategy? I'm going to cover it um in this episode right now because the reason that the price of Bitcoin went down was part of a media narrative. That media narrative was um Strategy selling 32 Bitcoin. An insignificant amount of Bitcoin relative to how many they have. I think last time I checked, they have about 850,000 Bitcoin. Um, and they're trying to get as much as possible. But what are the different products that exist within Strategy? So firstly, there's the equity. Now, the equity is simply an arbitrage. It's an arbitrage between the Bitcoin held on the balance sheet because the operating business isn't that big. Just happens to provide intelligence services and data services. Um, but the, the asset, the big asset is a number of Bitcoin that they hold on their balance sheet. And throughout its history, it has traded at a premium to that asset value, is known as the net asset value. And the premium is the, you know, the, the premium above the NAV. And the NAV went to a peak of three and is now about 1.23. What that means is that when you're buying shares in Strategy, you're paying for a Bitcoin, a Bitcoin per share, 1.23, two, three times the value of if you just bought that Bitcoin. And so you're paying a premium to buy Bitcoin via counterparty risk. And that arbitrage is the game. That arbitrage is what allows as much Bitcoin to be centralized as possible and play that game. In order to get that Bitcoin, they launched different products. Originally, they started launching convertible notes because then they could go out to FIC nodes like corporate debt holders and offer them higher returns for higher risk. They also offered a preferred stock, rather, that for some reason they're calling digital credit, as if we haven't seen a preferred stock before. And they're just really offering what investment banks have always done. Um, and what my department in the investment bank used to do when I worked there is structured products. Google was using them, other people was using them. Um, but when you combine them with the complex that was built as a result of Operation Choke Point 2.0, know when you combine it with the ETF and the ability to arbitrage between these different vehicles, Bitcoin essentially becomes, and Strategy becomes a vehicle um for this arbitrage. And so the weakness that we saw leading up to this was that into the AI bubble, there was $4 billion of outflows from the Bitcoin ETF and capital was rotating into AI, as I said. Um, and uh, Bitcoin was um, basically um, transitioning through Strategy um, and these different structures. And so over time, these different structures were built. And the latest structure is something that they're calling Strive. So while the market is funding this whole AI buildout, Bitcoin has become a source of liquidity, as we previously said, for the funding of AI. Um, and it's a bit of the buildout, which Google has also been doing, you know, with their stock and debt. At the same time, Nvidia, you know, home AI chips, um, has been launched. And so now you're starting to see these different types of AI. We also covered the China trade that they have the frontier models, um, that it can do things significantly cheaper. Um, and that, you know, Google, the different things we've been covering, Google may be dominating the West. We have this AI bubble. We're probably going to have a lot of M&A. China has been increasingly dominating AI infrastructure. They met in Shanghai. All the things we, we covered. We've had David Sacks in the Trump administration. Uh, he was pushing out a deregulation of AI. I think there was an executive order saying that they'll, uh, the government will review AI, which is just ridiculous, because the government is um, you know, a subsidiary essentially of the FIC. Um, and um, you know, all of this was happening um, this whole narrative that I've been talking about transitioning to this one world corporate FIC dominated AI infrastructure, that obviously takes the precedent as well. Um, and so we're seeing um, this um, this trend in the AI infrastructure. We're seeing the capital outflows of Bitcoin um into these alternative networks. And at the same time, we see a hedge fund FIC node, Michael Burry, who's putting out different data um around the structure of why they think this is an AI bubble as well. So, um, what Michael Burry said as well, and then I'll tie all this together, is that Nvidia is selling about 4, 5.4, 4 billion dollars of chips to a company that does nothing other than buy those chips called Valor. Um, and Valor is owning all those different chips. And then those, he, the accusation was um, that XAI is using those chips via this shell company. Um, and Nvidia now injects $1.9 billion into equity, uh, into this company Valor. Um, and then Apollo was providing the debt. We're getting all this stress in the private credit market. They've been borrowing the money in order to do it as well. So, it's leveraged as well. Um, and then, uh, there was a company called Athene, um, that basically owns the exposure to this different elaborate vehicle. It's done via Bermuda, um, and I think is via, um, um, that it, it was showing anyway. And there's basically $13 billion level three assets. You can go see the post. And there's approximately 16x leverage in this trade. And so Barry's, you know, um, sorry, Barry's, which was the guy from The Big Short, that was leading up to the MBS. Now, remember, they have controlled opposition in these types of different processes. So Larry Fink knew that their MBOs were going to blow up. Barry blew the whistle, took the short trade via the hedge funds. And then you have the Fed that socializes the losses and privatizes the gains. And so Barry's conclusion is basically that Nvidia is booking revenue and fudging the books. Um, Apollo is getting a bunch of the fees um via this complex, and XAI is getting the compute power. Um, and um, this is basically a reverse carry risk into a highly leveraged trade. Um, and, uh, basically Barry was, came out on his um tweet calling it a fugazi. Um, and so, uh, we're getting this whole like AI bubble set up. Controlled opposition, socialize the losses, privatize the gain. Um, the AI bubble is being inflated to a large degree. Um, leverage is already layered into the whole top structure. We're getting all this private credit market that is then connected to the banks. We got all of these different structured products um that are already being built. Pension money is already being allocated and rotated into the trade. Larry Fink came out and said, "You're going to fund the AI buildout um through your trade." So the financial industrial complex is basically, you know, really aware um and repeating um, you know, this, this whole model. And it's looking a little bit, you know, it's looking like that structure is being set up prior to the 2008 global financial crisis. Now, leading up to this, we had the whole Bitcoin versus gold thing. Um, why gold was accelerating, had a really big run-up while Bitcoin was weakening. Um, and the reason is, is because states trust gold. The FIC was managing capital outflows. Central banks, all shareholders in the Bank for International Settlements, they were all increasing their gold position. Um, gold's got 5,000 years of history. It's not the same as Bitcoin. Um, there was sovereign accumulation. Now, countries like Iran were mining Bitcoin. Um, countries like El Salvador and the Kingdom of Bhutan were looking at building Bitcoin strategic reserves as experiments. Um, but it's not being used by central banks. Great. It will be used. I don't want it to be used. The Czech Republic um was experimenting with it. Um, I'd rather it doesn't, but Bitcoin is for anyone. And so, you can't stop it. You can only understand the structure. Um, and so this ETF arbitrage between Bitcoin and gold um was happening leading into the massive inflows by BlackRock into Bitcoin because Aladdin Technology was recommending that everyone needs an allocation into Bitcoin. Um, and we had this buildup of uh the different treasuries. You know, this is where Michael Saylor emerges. We get the Bitcoin Treasury Company and concept um being built. Um, and remember, these are all finite games. Um, whereas central banks are kind of infinite games. They work on these longer-term time frames, whereas these finite games are shorter-term time frames as well. And so gold has sovereign buyers, which is why we got that big um inflow into gold. Um, and it was based upon central banks. And we had treasuries. The market cap of all treasuries held by a central bank became less than the market cap of all gold that was being held by central banks. Now, Bitcoin had this big accumulation phase. Prior to that, we were on our four-year cycle. Um, and then we had this big accumulation into treasury companies, BlackRock, and ETFs. Then you started seeing companies like Cantor Fitzgerald and JP Morgan build derivatives complexes, try and build more treasury companies. Um, and uh, you had different types of financial products that were coming out of Strategy. Um, and so the long-term Bitcoin thesis still holds. Uh, but the short-term price could be understood by understanding the ETF outflows. And at the moment, states aren't buying Bitcoin, so there's no point looking at any of those flows. Um, you know, the states will probably end up buying Bitcoin, and they will probably need it um as a natural reserve asset in a multipolar world. As I said, I'd rather they didn't, but you can't stop it. Um, and so Bitcoin can become the type of architecture um that manages these world reserve assets when people can't trust the gold and people realize that there's many more paper derivative gold contracts in the West, and most of the gold is in um Shanghai, Switzerland, and various other pieces. Um, but the question isn't like, um, you know, if it will happen. It's more when it will likely happen. Um, as I said, I'd rather it didn't, but it doesn't. So, what did Strategy, uh, do this week? Well, it decided that it was going to sell 32 Bitcoin, which is what really kicked off the correction and the crash from, you know, down to about, I think it went to a low of about $60,000, $62,000. I wasn't following it. As I said, I've been traveling. Um, but I think it was in order to change a narrative that he had built up before. His previous narrative was, uh, Bitcoin, I will never sell the Bitcoin. Now, why did he change the narrative? The reason he changed the narrative, and this is the architecture I want people to understand, is because he wants access to the passive inflows of the S&P 500. What does that mean? It means you want to be included in the index, as does SpaceX right now. It's why they change rules. If you're a trillion-dollar IPO, you can get into the index. That gives you the passive flows. Why do they want the passive flows? And what have you got to do? You have to bow down to the FIC, the indexes, the S&P, which is one of the control vehicles um for getting access to BlackRock.

Capital, Black Rockck ETF flows. So, this is one of the ways that you become subordinate. So strategy um you know has been building out this cap capital stack that makes it more and more subordinate. Um I already said earlier what is the equity structure? So it starts with I have an equity I have a company. Um the company was a long-term public company that was revived out of nowhere and suddenly you know the person that didn't like Bitcoin likes Bitcoin. People can change fine. Okay. Uh but he created this arbitrage vehicle and the arbitrage vehicle was let me load up the balance sheet with bitcoin and then I'll keep selling equity. I'll sell shares in the company uh while the company is valued at a higher rate than the amount of bitcoin that we hold on reserves. Uh then he started loading it up with debt and now you get subordinate not only to equity holders um but also to convertible note holders um and that is people that invest in debt. A convertible note is a debt product where you borrow money and it converts to equity based upon the terms of the contract. And so now you could get people that want higher returns through debt and they could then you know get a higher return and then strategy could use it to buy Bitcoin and then they increases the position of Bitcoin. Um and then that Bitcoin then um has equity that's trading at a higher value. I said at its peak it was about three times the net asset value. So people were buying shares at three times the value.

Now this whole model worked very well in an upward market uh because the notes would convert to equity as Bitcoin is rising. But when the market was switched to ETF outflows, um there was new products that were built. And so we had what we're now calling Strive, the preferred stock. Um so previously it was all about the equity arbitrage. MSTR would basically sell equity above the MNAV, the value of the Bitcoin. Um it would have the big premium, but now it's about 1.23x. that needs to be protected because the profit comes from the premium, the arbitrage. The arbitrage needs to be protected. It is trying to get people to buy shares for more than the Bitcoin's worth. And what is the side benefit of that? If you're constructing a complex, well, those people may not own Bitcoin. They may do this instead. And it may be tax advantage to do that within a pension structure. And so therefore they get allocations towards Bitcoin via the ETF and via strategy. Um and uh but as you issue more equity, it it accelerates dilution. And as you accelerate dilution, you get more and more equity. And so you're selling more and more stock above the asset value. And you just keep doing that to buy as much Bitcoin as possible. And Michael Sailor did that for as long as possible. But it's the arbitrage. He's an arbitrage company. This is a for Bitcoin long-term capital management type of structure. And so the goal is to increase Bitcoin per share. So you'll keep selling equity for as long as you can until you've increase Bitcoin per share. And then it verges until the arbitrage is is, you know, a smaller premium rather than a larger premium. But that's what must be protected. It's the premium that must be protected cuz everything kind of depends upon um you know pres preserving uh that premium and so you push out a bunch of narrative out there. Suddenly he's included on all the podcasts. Um suddenly you know it's uh the whole uh complex is around that. Um but the push that he was pushing was we buy and we never sell. Um, and his whole thing was Bitcoin will hit $1 million. We're never going to sell. We're going to hold it forever. Um, and he started framing it as pristine collateral. And because it's going to go to a million dollars, everyone should borrow against their Bitcoin. Um, and so, you know, this kind of narrative of what Bitcoin will do because it's a fixed supply asset, what it may do, um supports the premium. And so who does and I would just simply point out who does Sailor serve under this architecture. Well, he serves his shareholders, his shareholders. Not only that, and his bond holders um and the rating agencies, which are all nodes in the FIC. And so this is a fick incentive structure. It is a structured product and it is the arbitrage that does it.

And so then out comes the convertible note. And so um this gives you know um cheap borrowing um in an upward market where that debt can then convert into equity which dilutes the equity as it gets converted. Um and um and you borrow as much as you can but as you borrow more who are you borrowing from? You're borrowing from the corporate investors and Jane Street and known actors that are involved in the appointed representatives of the Bitcoin ETFs. And as more and more people are buying up the narrative of borrowing against your Bitcoin, what are they doing? They're borrowing against their Bitcoin. Who does that? Well, Strive does that. Jack Malers and various other companies. And so you push those into a Bitcoin treasury company and then you get them to raise more money. And then you borrow from Tether. Tether who's holding the treasuries. Uh those stable coins are part of the privatized central bank digital currency. And so, you know, he's pushing out Bitcoin collateral. As more and more people use Bitcoin as collateral, you can now margin call people by controlling the price. And this creates a bit of a flywheel as well. And so he started paying down the debt as people started saying um you know he borrowed against um one of the banks that went bust which was I think it was silvergate. Yeah silvergate um not signature I think it was either signature or silvergate you can correct me in the comments. Uh but you issue more debt you buy more bitcoin um as bitcoin rises then the equity rises with it then the debt converts as the equity rises. Um, and so when that stopped working as a vehicle and it dilutes down and you get more and more to a smaller premium, you launch a new product. And what was that product? It was a structure product. And that structure product is called STRC. So everyone starts talking about that. What is that? Well, you have a product that's meant to be valued at $100. And you pay people a yield, i.e. you pay them an interest or a dividend. It's actually a dividend. uh because the term is being confused. Um, you know people are changing between yield and dividend but equity has a dividend, debt has a yield um in traditional jargon. Sorry about all the jargon. Um but the price is designed where it's meant to stay at $100. So if basically um the price, you know, goes below $100, you can either buy it at a discount to try and p push the price up or you can encourage other people to buy it. How do you encourage other people to buy it? You raise the dividend or the yield. But every time you raise the dividend or the yield, that applies to all of STRC, which has already raised billions and billions of dollars. So, your cost of capital, the more times the price goes below, and this week it went to about $94. Um, you have to pay a higher yield in order to get people to buy it if you can't buy it yourself. And so, what are you doing? You are creating a big ginormous arbitrage vehicle. Now, where does that yield actually come from? Now, let's say that the price goes above $100. Then you can lower the yield. Um, and that will lower your cost of capital. So, it works both ways. Um, but the way that the product works is it's being sold as digital credit, but it is actually just a preference share. And we've seen these before. And the reason that's important because anyone that reads the terms knows that the dividend can be cancelled. It can be cancelled at any time if it chooses. Um and uh the cost can compound every time the price goes below 100 and you need to incentivize someone through a higher and higher dividend. Um and so you know this is uh the the the kind of the the structure um that has been built around this product. Um now you have a constant narrative that supports the premium. The premium supports the structure and then um selling you know weakens the narrative. And so when selling weakens the narrative you get a a flywheel in that direction as well. And so basically, Sailor has engineered a structure that basically um becomes a tool for the financial industrial complex and the arbitragees that is incredibly difficult to unwind. And where is the dividend coming off from from all this preferred stock? Well, the only way to get it is to either sell Bitcoin or sell equity. And so now you get accusations of Ponzi. I don't think it's quite a Ponzi. It has the ability to get there. It's a structured product with lots of risk. Um but you have to sell the Bitcoin in order to pay the dividend or you have to sell the equity and the equity has to sell at a premium in order to maintain the reason to purchase the equity. So the premium is the product in this situation and Bitcoin is really the collateral behind the product.

And so what do people start doing? Well, Jeff goes out and starts talking about how Bitcoin is the collateral and Strive is the money. They're now saying that a security is the money. A security is subject to all sorts of regulations, held in custody, not a product you can own. But what if you could create a custody relationship where now the custodian holds it and that custodian might be Coinbase who's another public company and that public company is now a fake node and maybe it's in the ETF via BlackRock and then maybe you can get a way of holding it in custody. What if you tokenize it? And so now you start pushing products that say, "We'll hold Strife, but we'll pay a higher yield or higher dividend." And you do exactly what happened in 2021. You start building in higher and higher yields. This is exactly what happened in amateur hour in 2021. Um, and you get this big financialization. And so now suddenly, um, Sailor starts changing his narrative. He's saying, "Oh, Ethereum can be used in order to wrap DeFi layers around this product." So now he starts helping the Trump administration on crypto, not Bitcoin. So you see the mission creep. You see how the Fick drives you into this. And why do you why would you sell 32 Bitcoin? Because you're trying to appease the credit rating agencies. So this is exactly why you do it. And then that led to the first crash to normalize the market that happened here. And then that can trigger off the DeFi all wrapped around Strategy. And strategy is wrapped around Strive. And Strive is wrapped around a custody relationship. And that custody relationship is wrapped around Coinbase. And Coinbase is offering futures markets, all sorts of stuff. And so this is exactly what I was warning about and this is what I said will create the next correction. Now so far we have seen a 50% correction when everyone was telling me Wall Street getting here is adoption. Now I'm just explaining the architecture.

Now at the same time caner takes all the different parts of it. Um so not just wrapping Michael Sailor around strategy you know that was a public company that got into Bitcoin but now it starts taking the Bitcoiners and wrapping them around Wall Street and now their narrative will change. So we've talked about Adam Back. Adam Back owns Blockstream. Blockstream got um some Epstein funding back in the day. Uh they've employed developers. Some of those developers have left because they talk about how they think certain parts of developers are compromised. Now it's a public open-source boardroom and uh you know we get the the public gets to um you know different entities allocate what developers get different funding. So fortunately it's sort of decentralized there. But when you put a a centralized private company, I can bet you what comes next. Blockstream will be acquired into this public Bitcoin treasury company, BSTR. And so now funded by, you know, Tether and and so now you're taking all of these parts of the ecosystem and trying to centralize them. Did the same with Jack Malers. What was announced? He owns Strive. Strive allows you to borrow against your Bitcoin. Um, now Tether bought out Soft Bank. Uh, Caner Fitzgerald is the the the investment bank. Howard Lutnik connected to Epstein, all that type of stuff that we've always covered. Um, and Jack Malice gets wrapped into it. So now you've got the ability to have margin calls. I covered in previous blogs the role of Jane Street and the appointed representative. What do they do next? They wrapped David Bailey in a Bitcoin treasury company. He's got a hedge fund in Bitcoin. He's got runs a Bitcoin conference company. He runs Bitcoin magazine. You put all that into a Bitcoin treasury company. Um, and now you've got all these emerging structures um that are basically Bitcoin back leverage and now you're trying to get people to put it in their pension and all this stuff. So, you're trying to centralize as much of the parts of the ecosystem. Now, fortunately, there's a rampant self-custody community in Bitcoin. Um, fortunately, the structure um is decentralized distributed supercomputer um open-source code with alternative mechanisms for funding developers. Anyone can run a node that enforce the rules. And so the self-custody community kind of fragments and you get the paper bitcoin community and the paper bitcoin community are have the tools via strategy in order to engineer this complex and so now they control the inflows and outflows via black rock Aladdin and that's the short-term price. So we have to deal with that situation. That is um the thing. But it is now paper Bitcoin is a structured product in that and treasury companies are part of that ecosystem. And this is kind of like a collateralized debt obligation when you start getting people to borrow against it and you create incentives. And what are those incentives? They want you to give your Bitcoin to them. But the reason I talk about Bitcoin and self- custody is, you know, people get upset about it because this is how we resist and this is how we maintain our sovereign ability um to operate outside the system and boycott the system as well.

So, Black Rockck gets all the assets under administration fees. Now, Coinbase gets the custody fees and other parts. Uh strategy or sale, you know, they get the arbitrage fees. Can gets the investment banking fees. Uh the banks get the Bitcoin, you know, backed lending ability to create um you know, fiat currency to get you to Bitcoin, get their Bitcoin. And Jane Street controls and manages the short-term price and liquidity so that they can um decide whether you get margin called or not. That is just the reality of how it is today. And the way to to win that game is for you to understand that game. So when they're manipulating the price down, which they can't do forever, uh then you accumulate into weakness. When they're managing the capital outflows up, you accumulate into weakness and the value of your cheaper Bitcoin goes up in value. And you have a long-term plan. You hold it in self-custody. You don't borrow against it. You don't mine fiat currency with your Bitcoin. You don't hold in custody. And I get it. Sometimes you might need to do an allocation. And then again reality kicks in but this is the ideal here. And so the core point is that the financial industrial complex never stops financializing assets. This is the same for all assets. And it financializes you know housing. It financializes bonds. It financializes commodities. And it's the largest contributor to the US and British economy and the service-based economy is financial services. It financializes artificial intelligence compute. It will now um uh you know it financializes Bitcoin. But paper Bitcoin is not Bitcoin and that's why I cover these things to help people understand the market structure. And so anyway, we had a few more stories this week and then we're going to wrap it up and go into one of the interviews. Um, Mount Gaus um moved approximately 110,422 Bitcoin this week. And so that's new Bitcoin that's be entering the market and it will probably be distributed via Kraken. I know that um for anyone that's a long-term listener, you said, do you remember there was that story that came out a few weeks ago where some of the old wallet addresses sent a bunch of Bitcoin to um uh to freeze addresses. And so when you send your Bitcoin to a freeze address, it's a special address where the Bitcoin can't be retrieved anymore. I reckon that's part of this Mount G side where it was connected to some of the Silk Road Bitcoin because Kraken was managing that. And so I was saying look at whether it's connected to Kraken and it was um and it was some of the old addresses from that. Now we get a movement of some of the Bitcoin from uh Mount Gaus and that was worth about $739 million. And so anyway, um I think this is because I'm, as you know, I'm a seed investor in Kraken. I invested in over a 100 companies as we were building the ecosystem. I've been selling them down because of these uh you know uh trying to free myself from many of these captured companies and Kraken's about to go public. So we will become a fake node as well. Um but strategy anyway sold these 32 bitcoin. At the same time you got some of these uh bitcoin moving from the mount go days which was a 2014 bankruptcy from people that believed that paper bitcoin was bitcoin. We've seen this time and time again even in bitfinex. I became a shareholder in bitfinex by helping um creditors that when there was a hack of about 120,000 bitcoin because when you have bitcoin in an exchange is paper bitcoin. they promise to repay you Bitcoin. So anyway, um this is what it what happened um this week and this is why the Bitcoin price um crashed and this is the bigger picture. The bigger picture is that um you know through these collateralized mechanisms the short-term price of bitcoin is captured through fic the financial industrial complex it's learned how to financialize uh bitcoin um and uh and it doesn't need to control the protocol because it can't. So, I talked, you look at my blogs where I talked about when they tried to infiltrate the developers with Epstein networks and um when Jane Street was attacking the price um when there were alternative versions of Bitcoin. I wrote a critique on hijacking Bitcoin. All of these are on my blogs um for those that want to go deep into it. Um but they couldn't hijack the protocol. And so that's what the FIC would want if they could. And so instead they build the paper. Bitcoin's part about it. Um whether he knows it or not, whether it's deliberate or not, Sailor is that guy. And you can see through incentives, the narrative shifts. It shifts from never sell Bitcoin to have more Bitcoin um than you're selling. Uh to there's no second best to wrap Bitcoin products in yield on DeFi on Ethereum and this is the cycle that happens when you go through these subordination through fiduciary duties architecture and structure and it all goes back to the fiat currency Ponzi scheme and uh you know Bitcoin created a mechanism for escaping that but you have to hold it in self-custody but what do they want you to do they want your Bitcoin in custody. They want you borrowing against your Bitcoin by issuing you a loan so that your subordinate. They want you to buy it through an ETF structure. Uh they want you owning MSTR exposure or STRC. Uh they want perpetual futures gambling up and down on the price. Uh they want you um you know they want their you know subordination revenue as a subsidiary of the financial industrial complex for the subscription industrial complex and so this is so they can earn custody fees asset under administration fees financing fees and my view today's Bitcoin weakness is not a failure of Bitcoin it is evident of where capital is currently being directed because Bitcoin is here to stay. Um, and that's why I believe people need a longerterm strategy. The AI bubble is attracting the capital right now. Uh the Bitcoin financialized um you know financialized trade is why they're pushing the price down so that they can try and get as much Bitcoin and they have the control of the short-term price in order to do that. But the long-term scarcity thesis remains unchanged. So what you should be doing is the opposite of what they want you to do.

So in conclusion, let's get to the end of this. Um, I hope you enjoyed my little bit of rant, uh which is always longer than I think it can be, and then we'll move over to the interview. Self-custody your Bitcoin. Um, if you can, once you self-custody, you can learn how to run a node later. Don't get caught up in perfection. Start with a hardware wallet. You can get better and better at this. And just dollar cost average. Um, own more Bitcoin this month than the previous month or previous week or previous day, however you want to do it. Um, accumulate through volatility to the upside or the downside. Don't try and get fancy and trade and think you're going to figure out where the top and bottom in is. And the best way to do that in the downtime is to measure your wealth in Bitcoin. You can do the same for gold if you don't buy into this whole thing. But measure your wealth in Bitcoin, which means as the price goes down, you get more Bitcoin for your fiat currency. And then you can chill. Um, you know, think in terms of at least a decade, depending on how long you got, decades if you're younger, but not minutes, cuz that's what they want you to do. They want you high time preference. It's an economic concept. Um, you know, not low time preference. Your high time preference is your thinking in terms of, you know, um, how quickly you want to get to cash, how quickly you gamble. And it's always fiat currency thinking that drives you that because the value of fiat currencies are designed structurally um to go down. So my final thought as always is follow the incentives um follow the contracts. I'll be continue to do that each and every week. Follow the debt, follow the custody, um follow the fees, follow the capital flows. Um, and of always follow the money. Who gets paid? Um, which um custodians um are going to get paid out of this, who are fick agents. Um, once you understand that, then you can um self-custody your bitcoin and do the opposite of what the fick wants you to do. So that's a wrap. Um, in summary, the main show that we've recorded today is that um what did we call this? Uh the great um capital relocation. Um, this is we went through AI, we went through Bitcoin, and we went through the financial industrial complex. In part one, we did parts of the AI bubble, um, the Bitcoin financialization, um, and the gate, uh, the great capital relocation, and now we're going to move over to part two, which is a third interview I did. Um, I really want to give a shout out to, uh, Bitcoin Archives and Archie. Um, I think the algorithms haven't been sending him some love. So, make sure you subscribe um to his channel. We did a third interview. Um, and in part two, this is the managed transition. We went deeper into the latest in the war, the latest into some of these parts of Bitcoin. Um, and most importantly, the end of the pro dollar, um, and some of the architecture. And so, uh, we're going to head over to that interview right now. Just before we do that, um, if you enjoyed this, welcome to all new subscribers. Um, what I tend to do is I go through long form content mainly for me and I help you record this so that I have to document it, think through it, and then hopefully you understand it too. I then um my team and Azad um will push this through to AI um and then the AI will chew out a five minute whiteboard video and a 20 minute longer form um slightly shorter content. Pull out a blog. I put all that on simonixon.com in case we get taken down by any of these um centralized social media networks. Um, as a backup you can please do subscribe to me. If everyone that watches subscribed to me, um we'd be able to spread the message further. Also, in case I get taken down by YouTube, um you can follow me on Rumble. I also stream this on X, Simon Dixon Twitter. Um, and I also give real-time analysis on X. So make make sure you uh follow me over there. And if you need to break this down, you want to listen to all the content, but you need it in bite-sized chunks. Uh you can always download it on Spotify and Apple Podcasts where you can download it, listen to it on the plane while you're driving. Listen to it in pieces. Um, and in case everything goes wrong, we got the backup on simonixon.com. So make sure you've signed up for the Simon Dixon Hard Talk membership portal. We're going to revamp it. There's a bunch of goodies that you can exclusively get there. I never monetize. no business upsell, no sponsors. I don't change my message. Um, I've tried to remove as many subordination networks as possible. Um, and uh I'll send you an email once a week um to make sure you're up to date um with the latest stuff that's happening. Um, as a thank you. Um, so with that in mind, always remember you're alive at one of the most interesting, crazy, um exciting times. I'm traveling at the moment. You probably got some of the uh calls in the background. Um, and um, it's going to be great for some, it's going to be really hard for others. I want you sovereign, and I think this is a call for me to end um, so that you can help as many people as possible. So, enjoy the interview, and I'll see you this time next week. Peace.