if you invest like this, the government will pay you forever

Added: 2026-05-22

[00:00:00]Tax loopholes. The only two words in the English language that give a billionaire a bigger heart on than carried interest or second wife. In 191 out of 197 countries on Earth, including the commie ones, workers pay twice as much in tax as investors do. Why? Because your taxes are pocket change. But your investments, that's what keeps the $111 trillion global government debt machine running.

[00:00:28]Baby, give me 10 minutes and I'll show you why nearly every government on Earth has to rig the game in favor of asset holders and the assets that the government will literally pay you to buy. If you're also a dirty, filthy little macroeconomics enthusiast like myself, you might have noticed that America has a bit of a spending problem.

[00:00:47]Every second, the US government spends about $219,000.

[00:00:53]But in the same time frame, they only collect about $155,000 in tax revenue. That's a whole of $64,000 added to the national debt every second.

[00:01:05]Aka 0.8 Bitcoin, 91 iPhones, 42,000 Costco hot dogs every second. Reminds me of every finance conference that I've never been to and hopefully never will.

[00:01:17]Now, it's not just an America problem.

[00:01:20]Japan's government spends 1.25 25 yen for every 1 yen that it collects in tax revenue. China's government took in 3.2 trillion last year, but spent 4 trillion. 191 out of 197 countries on Earth are doing this. Now, some of them will implement things like wealth taxes.

[00:01:39]Some of them will even make their billionaires disappear for 5 years overnight because of something that they said or talked smack about. And yet, even with all those measures, it's still not enough. They're still structurally short on cash. So, how do you fill the gap? The answer is through something called the sovereign debt market. Are you a government in need of funding high-spe speed rail, a stupid overseas war, or other really expensive that you promised your constituents? Can't find the tax revenue to do it? Don't want to print money out of thin air and look like Venezuela? Try Sovereign Bonds. a government IOU note backed with a really sexy interest rate that lets investors, pension funds, and other governments fill the gap. The US specifically needs a permanent structural buyer of their sovereign debt because again, they issue it at $64,000 a second. It is such a title wave of debt that sometimes the money needed to buy it doesn't even exist yet. So, the questionably independent central banks will print new money into existence to make it happen. Hence all the inflation headlines. Now, thankfully, the Costco hot dogs haven't gotten the memo yet.

[00:02:49]But when central banks don't step in because we bully them too much, or when the typical investors lose interest, like when Bitcoin, gold, stocks, or literally anything else provides a better return, there's only one path left. The interest rates on the bonds must go up. They must get sexier. Which also means that the government finds itself very quickly in a debt spiral.

[00:03:15]The kind of debt spiral where 20 cents of every dollar you pay in taxes just goes towards servicing the interest payments on the national debt. $970 billion per year in America from every taxpayer just to make the minimum payments on the world's largest credit card bill. That is so much money that you could literally give every man, woman, and child on Earth two Costco hot dogs per week. You could literally end world hunger and uh give everyone type 2 diabetes. Governments needed to do something smarter than just raise the rates on bonds every single time. that sovereign debt buyers walked away. And they did. They altered the tax code permanently. They made it structurally painful to just hold cash. And they made certain assets and investment strategies legally and perpetually rewarded.

[00:04:10]Particularly assets that keep capital floating inside their universe near the sovereign debt. So what are they?

[00:04:18]Basically, anything the financial industry tries to sell you. retirement accounts, real estate, index funds. Buy these things and the government will throw deductions, exemptions, and tax breaks your way, like throwing cash at a stripper or a Dave Ramsey. But tax breaks are only the half of it. The other half is the money printer.

[00:04:38]Remember from earlier when central banks print new money to buy sovereign debt or government debt, every existing dollar is made worth a little less. Cash savers get torched, but assets get more expensive because now there is all this new money chasing the same finite supply. Basically, if you hold cash, you're paying an invisible tax. Hold assets and you're getting an invisible subsidy. It's part of the reason why real estate has won so much in the last 50 years. It's incredibly scarce if you think about zoning regulations and physical space and the fact that banks let you leverage 5 to1 against it to amplify the win. Can't stop me from filming us out of this $2 million tear me down, though.

[00:05:21]We have a serious housing problem in Canada right now. If you're not putting your savings into a scarce asset, an IRA, 401k, RRSP, TFSA, or whatever other four-letter acronym that the government pulls out of a scrabble bag, you're pretty much paying thousands in unnecessary taxes every year. So, why does the government do this? What is the catch? Why do they prefer you to do this instead of just handing them cash direct? The catch is that that money usually ends up flowing right into the government debt machine. Pay into an employer 401k or a pension fund. There's a mandate forcing every dollar that you put in to buy at least 30 to 50 cents of government bonds. Don't want that? Say you prefer just buying Google or Apple stock. It's the same tax treatment except those companies put their money into US government debt, too. Google just bought $2.8 billion worth of treasuries last year. Intentionally go out of your way to buy stock in companies that don't buy US treasuries.

[00:06:26]If you do it through Robin Hood or Charles Schwab, check the fine print.

[00:06:30]They take your shares, lend them out, get interest for it, and then park that interest in, you guessed it, US treasuries. Trying to escape funding the government's debt machine is like trying to raise a kid without hearing baby shark.

[00:06:52]>> But there is one particular asset that gets you paid by the government in a similar way without funding the debt machine nearly as much. Bitcoin. You've heard the pitch before. Inflation hedge.

[00:07:03]Digital gold. It's going up forever, Laura. Whatever this button says for the next three seconds, >> you do not sell your Bitcoin.

[00:07:10]>> What you might not know is that it's the only asset that the government rigs four different rules for in your favor. Rule one, the wash sale rule, doesn't apply to Bitcoin. The best way to lower your tax bill. Sell your losing investments that you still want long-term and then immediately reby them to lock in a tax write off. The problem is is that stock and ETF investors under IRS rule 1091 have to wait 30 days after they sell before they're allowed to buy the stocks back again. And a lot can happen in 30 days. But with Bitcoin, you could literally sell it on December 31st and then the next second buy it back to lock in an immediate tax write off. Rule number two, let's say that things actually go well for you because you took some finance advice from a guy in a blue suit on YouTube and you bought some hard assets. After a few years, they've gone up and you want to sell. The question is, which hard asset do you sell? Physical gold or Bitcoin? Gold in America is actually a collectible under IRS rule 408. So, it's taxed like a Pokémon card at 28%.

[00:08:16]Bitcoin, on the other hand, just gets long-term capital gains treatment of 15 to 20%. Which means if Bitcoin went up 100%. Gold would have to go up 111% just to net you the same amount of profit after the IRS takes their cut.

[00:08:33]Rule number three. Let's say that you want to do the thing that every billionaire in the world does, which is not take a taxable income and just borrow against your assets in perpetuity. Bitcoin is the only asset that lets you do this at basically any size 24/7. You can get your loan within a second in almost any country on Earth except for like North Korea and Cuba and potentially without KYC or credit checks. Rule number four, if you have a profitable business, the government may allow you to buy Bitcoin mining equipment and then write it off as a 100% deductible expense as well as the cost to run it. I actually use this one all the time with today's video sponsor, Abundant Mines. Buy a Bitcoin miner through Abundant Mines. write off the full cost of it in year 1, run it at their ultra cheap hydropower facility, and then collect Bitcoin deposited straight into your own wallet. It does count as fair value income on the day that it is received. But if you just hold it, rule three kicks in, and then you basically have a line of credit that grows with your business every single month. If you're curious, you can see how it works and why a lot of previous real estate investors are now switching to Bitcoin mining. Plus, you can get one free month of mining on them. So, here's where we're at. Every government on Earth is running the same play. They're all drowning in debt. They need your capital in their orbit to keep issuing it. And they rig the tax code to keep it there. Real estate, retirement accounts, index funds, all of them win on tax breaks and money printer tailwind, but all of them sit in places that the government can reach. Bitcoin in self-custody is the first scarce asset that gets the same treatment without sitting anywhere that they can touch.

[00:10:20]Which raises the obvious question, why don't they just ban it? Because they can't. China tried banning it. They banned Bitcoin mining back in 2021 and hash rate recovered 6 months later and now their own government is hoarding it.

[00:10:35]The US tried hostile regulation and capital just fled to Dubai and Singapore. Every government that tries to ban it just gives their rival countries a more strategic reserve asset. Banning Bitcoin is like unilateral disarmament, which is why most governments are now just settling for getting as much of it as possible in their orbit. Even the ones that ban their own citizens from owning it. The cool thing about all this AI stuff happening right now, besides the weird hot dog graphics, is that all of this used to be asymmetric info. It's not anymore. you can go out and take advantage of it. The government is literally paying you to do so. Also, YouTube thinks you're really going to enjoy this video. They think you're going to have so much fun watching it and probably learn a bunch of cool You should definitely go click it. Okay, love you. Bye.