China's Gold Surge Just Handed Trump London On A Plate

Added: 2026-06-02

[00:00:00]China lowered the restrictions on buying gold. The gold price shot up over $100.

[00:00:06]This is the death nail for the dollar.

[00:00:08]That's what we talk about in this video.

[00:00:11]>> The truth is what happened yesterday.

[00:00:12]You had a nice little confluence of events and uh the market started off extremely weak without be without going too much down a rabbit hole. The market started off extremely weak.

[00:00:22]>> Uh but then it found some buying in the 200 day moving average. So technically people were looking at the market there.

[00:00:28]But then right about that time three news items cames out came out and one of them was the the mo I think the most important one that you brought up is the fact that China ease restrictions on owning gold. Now China uses capital controls the way we use margin requirements. You raise margin requirements, people puke their gold. In China they just basically say you're forbidden from buying gold for the next two weeks to get the price down. same idea, but you know, but one's authoritarian, one's democratic, depending on how you how you look at the world governance.

[00:01:01]>> Um, >> one's a market event, one's a market event. Some the market is trying to protect itself. Vince, come on. Let's go. We have to get with the Bloomberg speak.

[00:01:09]>> The market's trying to protect itself.

[00:01:11]So therefore, we have to raise margin requirements to get all the retards out of the market so that the professionals can make can make the market.

[00:01:18]>> Yeah. We we don't want any No tourists.

[00:01:20]No tourists making money. No plebs making money.

[00:01:24]That's >> whereas China says China says plebs out of the pool or you will be killed.

[00:01:31]>> One is just more honest about it. It's not really it's not a different policy.

[00:01:35]It's just the it's just a framing.

[00:01:38]>> You're laughing rich, but you're laughing rich. But for the last 50 years, your your background is in sociology, correct?

[00:01:43]>> I'm a social worker, but I've been into Bitcoin. I started off as crypto rich.

[00:01:48]So, I've been into Bitcoin and crypto since uh >> my channel 2017.

[00:01:53]>> But in terms of in terms of your academic background, >> yeah, >> we've been trying to colonize China for the last 50 years, trying to make them democratic. And China said, you know what? We we'll take the capitalism, but not the democracy. And now China is exporting authoritarian government to us. So, we're just we're becoming like them, buying companies and and uh and nationalizing things. So, so they're exporting authoritarian governance to us. So, socioeconomically, we're becoming more like them than they are like us.

[00:02:26]>> Or you could argue if you're if you're from the the the like the the Prometheian action um side of things, the Hamiltonian system was always was always, you know, that system is actually what China's, you know, started doing before we did while we were doing British quote unquote free trade. I'm again I'm I'm giving you their frame and therefore actually all we're doing is course correcting back to what we originally set out to do in the first place which is which is you know it's the same because it's because it's the same model. I mean we call it mercandalism, fascism, this that or anything else. It comes down to it's you know all those isms don't really matter at this point. It's a you know it's a it's a hybrid model. Yeah. I I know you do. I'm just but I I think it's >> clarifying for the audience. I think it's actually it's actually a good point, you know, in the sense that in the sense that and this is going to be this is not me being anti-democratic, but but democracy can only work so well uh when everyone can't fit in the room.

[00:03:23]And so now we need a little bit of authority to get things done because this is a big aircraft carrier we're turning around here. And so we have to go back to a little Hamiltonian uh uh governance.

[00:03:33]>> That's what we're doing. Now, >> let's get back to gold. Why did China do what they did? And what implications is it going to have for gold, dollar, the other financial markets, commodities?

[00:03:45]>> Well, for for for for just sticking isolated with gold. Now, China has a habit of managing the expectations of their people and managing their people's uh investment skills, telling them what to buy and what not to buy. And when gold was on the highs and silver was on the highs, China was pretty heavy-handed in saying uh you you have to they restrict gold ownership, they restrict silver ownership. They uh they put the uh the kaibos on a fund that was there in UBS. UBS had a silver fund >> that was completely untied to anything normal and so it was sucking in all the um >> all the uh speculative interest. So basically what China doesn't like is when China wants to buy it doesn't like it doesn't like uh its people front running it.

[00:04:33]And so now China has eased those restrictions that it put on uh in January when January when we made new highs China put restrictions on the market. So those restrictions are being pulled away and it's this it's got the same effect as lowering margin requirements with regards to gold. Well, sometimes those sort of things don't have a very big effect, but this time they had a very big effect, I think, because in part there's been a lot of uh floating rumors that the uh Iran war will be off. And if the Iran war ceases, that's bullish for gold, it's bullish for bonds, it's bullish for the Fed cutting rates. And so that got a little bit that put it also lit a little bit of a fire underneath it. And then uh there was one other thing.

[00:05:22]Um I forget what the other thing was, but but it wasn't it wasn't Oh, I remember it was it was at 8:30 that morning, some data came out that showed inflation was benign.

[00:05:32]>> So whether it is benign or not, we don't know. I It's not benign, but it was benign enough for them to to rally. So I think when you put those three things together, we rallied, you said 100. We rallied $150 off the lows >> and today we're up another >> as as as we speak we're up another $70.

[00:05:47]So >> yeah, we're looking at $4,600 gold and $75 silver. Those were those are significant and they're significant technically from a weekly perspective.

[00:05:55]Uh as we come into a Friday, what's interesting, Vince, I just want to like jump in here real quick. Um, one of the things that we've been dealing with is I think for the last few weeks, especially when looking at like the sofa strip and and the bond markets and bond spreads and everything else, what I normally listen, I already watch, what I saw was a brewing dollar liquidity crisis. Like there was a massive move into dollars that was happening across the board. The dollar was starting to strengthen. The euro was starting to fall over. Bitcoin was down. Gold was getting shellac.

[00:06:21]Silver was trading was, you know, trading sideways and not not moving. And you could just get this feeling that and stocks were under under pressure until late last week when the Dow went and blew through 50,000. Like the Dow was in the Dow was just sitting there like 49 grand for like a month, right? Doing nothing on the weekly chart. It was like oscillating and always and always, you know, closing within a couple hundred points of basically 495, right? And then all of a sudden, boom, Trump moves the market. there's a little bit of a breakthrough in Iranian talks because basically everybody's not sure what's going to happen next. Trump's moving air assets into the Middle East into into Iran. There's all these rumors that he's going to just bomb them back to the stone ages and the whole thing's going to explode again. The the Ukrainians hit hit Russia and Moscow and there's going to be, you know, that's going to so many people are like, "Fuck this noise. I'm out. I'm going to dollars and that's that." And uh I was talking with my friend Matt Dyn who I haven't introduced you to yet. Matt's very sharp bond guy who runs uh the the the podcast Mindprint Hash and he and I were on Tommy's podcast the other day doing a deep dive on monetary history, the bond markets and all this stuff and he's like we're seeing it like the leverage the leverage uh credit markets are seizing up and people are dumping money into the American um they're just dumping they're parking their dollars in American at the short end of the yield curve and that's having an effect on everything else right they're buy the raising dollars, moving everything into the short end of the yield curve, and that's why gold was weak, silver was weak, all this other stuff was going on. And uh and then the the the the broker dealers or the prime brokers have to take the the hedge position in order to, you know, this all this money is coming in, they have to hedge in the opposite direction. So, um and then all that came off the market in a day. And it's interesting that the minute we got the Dow break above 50,000, now we get all we needed were a couple of sparks like you just laid out.

[00:08:21]and gold was like, "Oh, no, no, we're back to 4,600." And I I I thought about this going, "Oh, it's right after Trump leaves China." A week after Trump leaves China, China opens up the gold market and they put the putting the squeeze on London again.

[00:08:35]>> Right. Right. Right. Right. I Yeah. I um you brought up the uh the gold versus Bitcoin uh thing. You know, it's funny because when the war started uh gold was uh gold got weak and Bitcoin got strong, >> right? And then gold stayed weak and Bitcoin went sideways.

[00:08:54]>> And starting yesterday, >> this is what's different about it. I mean, what starting yesterday, gold goes up >> and Bitcoin goes down.

[00:09:02]>> Yeah. Well, that's been a that's been an anthropo trade, though. There's been people sell Bitcoin and buy gold. That's been going on all year.

[00:09:09]>> Oh, yeah. I know that. But but the fact that they're reversing now >> um >> means that you're seeing stocks rally without Bitcoin participate. Bitcoin is not tracking stocks. So, Bitcoin is now Bitcoin is the opposite of gold.

[00:09:23]>> It's kind of a weird correlation. It's kind of like a risk on riskoff >> uh uh gold trade.

[00:09:29]>> Yeah, there's a I mean, there's always been a high correlation between Bitcoin and the NASDAQ, right? And the NASDAQ is is rallying like like gang busters and um you know, Apple's at 320. Like IBM is up 80 points in the last two days.

[00:09:43]There's all sorts of weird stuff going on with quantum computing, AI, all this stuff that's happening, right? and the NASDAQ is just exploding. We're all getting ready for the for the SpaceX IPO. So, there's a ton of move money moving into that whole complex. And so, the NASDAQ have been leading the the NASDAQ actually and the Russell 2K have been leading the US stock markets while the Dow has been the lagard. And um as people used as as foreign interests use the Dow as a dollar piggy bank.

[00:10:09]basically this foreign interest like for for for rich for people in the in and I mean part of the reason why I wanted to have Vince on the on the show was just so that every once in a while we could do a hardcore financial plumbing conversation to go along with all the other geopolitics and all the other stuff and that's part of the reason why I I why I called this TED talk and um and you know and and the the and what's important here is that um you know the Dow now operates as a sync for foreign capital into US markets because it's a massive pool of liquidity where you can dump money in and not move price, right?

[00:10:48]Because it's all the >> dollars by buying the Dow, >> right? You buying the Dow, right?

[00:10:53]Exactly. Not the S&P, >> right? That's not the S&P. This is an old Martin Armstrong, you know, argument, right? That the Dow is the is the dump for foreign money. The S&P 500 is a is the best pro proxy for overall US growth. Obviously the Russell 2K is about you know small caps and entrepreneurs and the NASDAQ is about technology and growth right that's the those are the way the four major markets of the US equity and you know equities lay out from a uh a basically a symbolic logic perspective. So when the Dow is flat and everything else is rallying, it's because, you know, foreigners need dollars and they're going to sell into strength to get dollars out when they need them because they need them somewhere else basically to cover their debts or their leverage loan positions or whatever it is overseas. So that's when the offshore dollar markets like doesn't doesn't move and you know doesn't move the Dow uh while everything else is breaking out. What was interesting, Vince, and this is some one of the things and I was just talking with chatting with Dexter White about an hour ago and I and he was, you know, he's perpetually like like Dave Colum complaining that the equities were massively overvalued and he's like wants to do the fundamentals argument. We're like, dude, it's not about fundamentals, it's about liquidity. I said, you realize that when the Dow was getting shellacked in the early stages of the Iran war, we never got a Dow theory confirmation on the Dow transports. the Dow transports and the Dow at the beginning of the year broke out to new highs back in January and they both broke out on the same week and we got a we got a like a perfect Dow theory breakout. Right.

[00:12:24]>> Right. Right.

[00:12:25]>> Okay. So, new highs and and the Dow transports kept going higher and then only ever corrected back to the breakout level was the Dow tanked into the low back into the 40s, right? And now the Dow is conf Now now the Dow is confirming that non-confirmation that a bare market in US equities was coming because the we didn't get the confirmation of >> the transports didn't give us a >> pull back >> right that if the transports had pulled back with the Dow the Dow industrials we would be looking at a bare market in US stocks all all the way around the board but the market was never convinced that this was any gonna be anything other than a short-term dislocation towards where we were going, where the US economy was going. And that's that was my signal. This is why that's part of the reason why I was such a dick to everybody who was like, "Oh, the world is ending and Trump has like got himself involved in this horrible mess over in the streets of war moves and Iran has won." I'm like, "No, he hasn't." Why?

[00:13:24]Well, because the Dow Transports refused to to back off.

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[00:13:40]>> That's why I like literally it's like back to like market fundamentals 101.

[00:13:45]>> Yep. So, >> let me just say a few things about to make it clear for people who >> don't have your both your levels of expertise and stuff. So, the Dow transport index is the part of the Dow that determines >> transport companies. It's a separate separate index. transport companies and that includes that includes Tom and you've referenced this before in our videos >> but there's a guy on Twitter I forget his name who has >> who tracks the freight internally >> Craig Fuller over at freight waves and then obvious yeah that guy and what I'm getting out you're right what I'm getting at here this is classic Dow theory and this is not this is not rocket science folks this stuff you can go look up Charles Dao you know came up with Dow theory back in the 20s okay when we were an industrial economy okay And Dow theory has been, you know, has been not particularly good a useful tool for years because we weren't an industrial economy. We were a financialized economy. And so as we move back towards a Hamiltonian model, Dowo theory is going to become more and more and more explanatory and more and more predictive. And the ghost of Richard Russell of Dow theory letters is going to be smiling on us from heaven with a cigar and a double rye in his hand going, "Told you boys."

[00:14:56]>> Yeah.

[00:14:57]>> Fundamentals matter.

[00:14:58]>> Yeah. And and this is the manufacturing or the movement of goods within the United States that's increasing.

[00:15:05]>> That's so what? Yeah. So the point here is that you can go look up Dow theory on investipedia or put it in the Barack or whatever and you'll get a nice simple it there's plenty of like layman level material out there to explain Dowo theory. Okay? I mean it's the easiest thing. It's not it's it's not complicated. And so use that as your guidepost as to what's going on here. So now back to Vinceen and what we're seeing in gold and you can see what I'm getting at.

[00:15:30]>> No. Well, the transports, Rich, the transports um have to confirm what the Dow's doing. So the transports are smaller division of the Dow, but you can't have one go without the other. So it's a confirmation process. So it's kind of like >> uh if you don't take the transports along for the ride, then the ride's not going anywhere, >> right? And then it's then it's a f then it's a hot money flow issue of foreign c. The way I read a non-confirmation where the Dow was breaking out and the transports were lagging. That's a hot money inflow problem. Usually it's a geopolitical hot >> fundamentals that that's the fundamentals that create the technical.

[00:16:04]Yeah, I agree. Right.

[00:16:05]>> And then the reverse of that is what we had which is that hot money was flowing out and the transports were taking off because the economy was actually gain gaining steam and all we had to do was wait for the hot money to stop flowing out and then the Dow would take off to make new highs and confirm the non-confirmation. That's where we are in equity markets as we uh end May and that's going to be very interesting as we get into the end of the quarter by the way.

[00:16:29]>> Okay. Then then what about the traditional >> perhaps simplistic notion that if the go gold is strong and strengthening then the dollar is weak and weakening and people are selling their dollars for gold. How does that fit into this? Well, that fits in perfectly right now. Over the last couple days, >> over the last over the last month or two, the dollar has been strong because there has been a panic. So, that's what Tom's point was that we changed like that in a couple days.

[00:17:02]>> Sorry, Tom. I thought gold was the safe haven asset, not the dollar. That when there's when the war starts, people move into gold because of uncertainty.

[00:17:10]>> No, no, they move into the dollar because they've got liabilities denominated in dollars. It's the people who are not who have no dollar liabilities. They move into gold, but they're a much smaller part of the market. And this is the fundamental problem with arguments of, you know, of the the kind of classic gold bug mentality and even Bitcoin maxing mentality. They don't understand that at the end of the day, there's hundreds of trillions of dollars, if not quadrillions of dollars out there in dollar denominated liabilities, which have to be serviced right [ __ ] now.

[00:17:42]And it doesn't matter what's going to happen in 20 years. And so guys like us who sit in, you know, who sit in low who sit who invest or breed the markets with a low counterparty risk mindset when this [ __ ] happens. We go, "Oh, everybody's going to rush into the dollar. Gold is going to get shellacked." And I buy more gold, >> right?

[00:18:03]>> I just wait for the I just wait for the bottom to come in and then I usually snip out a bottom, buy some gold. I'm not a rich man. So, I buy a little bit and I put it on and I put it away and I and I walk away from it and that's that's what I do. Um, >> yeah.

[00:18:18]>> The uh the particular example, Rich, I think that you're talking about or the case in point is uh gold sold off when the war started, the dollar strengthened.

[00:18:28]>> Agreed. Right. Okay. Now, the particular instance of what what Tom is talking about that I could just bring up is is Turkey. Turkey. Turkey is the poster child of what Tom's talking about. So Turkeykey's a c Turkey is a country that has a lot of dollar debt, >> right? So every month, so Turkey has, let's just simplify Turkeykey's economy into two things. They make money with oil. Not that they they don't drill for oil, but oil is part of their economy.

[00:18:58]So they make their money by getting involved in the sale of oil. And if they can't sell the oil because the Hormush trade is closed, then they can't earn dollars. Doesn't matter what price the oil is. Now, the price of oil is trading $150, but they're not selling any. But every month, they have to pay their debts. And their debts are denominated in dollars. So, if your debts are denominated in dollars and your income is not coming in in dollars, then what do you have to do? You have to raise dollars. And the first thing they did, the first thing they did was they sold as much gold as they could get get their hands on. They had gold and they sold it. They sold the gold for dollars so they could pay their bills. The second thing they did was they sold a lot of treasuries as well, which is which is rare, very very rare. And that's going to come back. Tom's going to we're going to bring that back to Tom and he's going to talk about um uh Great Britain, of course. I mean, or or the city, I should say.

[00:19:51]>> But um >> that was very rare. So So but but to to button down your point, Rich. So during those times during times of panic uh that's fin during times of financial panic >> even though it started under a war during times of financial panic gold can be sold off as well. Not unlike during the Wymer Republic uh in Germany, Deutsch marks were going to zero, right? So people were selling, and I'm not making this up. This is actually part of what happened. People were selling Steinway pianos so they could buy food.

[00:20:28]>> Wow.

[00:20:28]>> So they were selling their precious items to get Deutsch marks to buy food.

[00:20:32]So it's like you sell your precious item, which is gold, to get dollars to pay your bills. And so that cycle happens until there's some relief. And we may have just seen the the first two days of relief on that cycle.

[00:20:45]>> And it makes sense that >> and it would also there's two there's about three or four things I'm going to try and bring up briefly and because because just to add to this is one yeah Turkey sold its treasuries. What's interesting is that since the last time the Lero went through a crisis, Turkey had been slowly rebuilding its US uh treasury reserves from nothing up to about $18 billion. and they sold them all in a month.

[00:21:08]>> And interestingly enough, um, because the tick report from March, it came out, the TIC report. And interestingly enough, Vince, you know, Vince and I are are are part of a mutual appreciation society. So, he's a subscriber over me.

[00:21:21]I'm a subscriber over at Goldfix. I get emails from him all the time. And I saw his email the other day saying Turkey about the tick report. Turkey sold all of its all of its its treasuries and a bunch of gold. And I went, "Oh yeah, that's because they were, you know, they were having to London was draining all of its offshore, one of his offshore accounts and the latest one is Turkey because of course they also want to take political control of Turkey. So you create a L crisis and Vince is like I don't understand and we were on the phone for 20 minutes and I explained it to him and immediately we called and we chatted for about 20 minutes about this and then so that's one angle on this and this happens a lot. the the the point and the second is is that it's during that initial impulse to change.

[00:22:01]Everybody goes to dollars because they're not sure what to do. Get to dollars, shore up your liquidity, your your liquidity position because you got to make payroll next week because you got to buy your kids a G.I. Joe with Kung Fu Grip for Christmas because because because I got to make a Trading Places reference because if I don't, this shit's not entertaining. So, you have to do that. And then it's the second move that that is more interesting. So in so we have that move then we and then we muddle around for a little bit as Trump kind of [ __ ] around in the shorting of straits is it opened is it closed what's he doing blah blah blah blah meanwhile the whole world is rerouting oil flow away from the straight of Hormuz which is exactly what he wants to do and then he goes to China doesn't get doesn't announce much right but what happens is very consequential because we get to see how consequential the conversations were because a week after he he leaves China China opens up the gold restrictions uh restrictions on gold ownership in order to bring money flow back, Chinese money flow back into gold right as the dollar is starting to weaken again as as things are starting to settle down. Oil's come off $100 a barrel. We're now trading in the 90s or the high 80s depending on what price you look at and everything is and and the uncertainty settling down and everybody's like, "Okay, maybe it's not going to be so bad." They can start to deploy their money. Where are they going to deploy their money? Well, smart people are deploying their money into gold. China just gave a whole bunch of a whole raft of consumers the ability to buy gold. And this goes back to a point that that Vince was making a year ago, which is why Vince is a [ __ ] badass, where he kept saying China and go, China and the United States are swapping, you know, are are taking different or coming up in the gold market and doing different at bats.

[00:23:44]So for Q1, it's the United States buying gold. In Q2, it's China. Q3 is the United States, and Q4 is China. They keep swapping back and forth. But the target, the pitcher in every one of these in in every one of these the these baseball scenarios is London. London's having to throw is having to pitch like softballs to China and the US to buy the [ __ ] out of gold and put the pressure on the LBMA and tighten the gold and silver market as we we found it the at the end of last year. When Vince said that to me last year, uh we either in a conversation or a podcast or whatever, I just looked at, "Holy [ __ ] dude. You're absolutely >> Yeah, we had we were looking at a chart.

[00:24:19]We were looking at a chart. That's right. I'm glad you remembered that.

[00:24:22]>> We're looking at a chart, right? Uh Rich, and and and the chart had uh who's buying gold over time. So, it's like purchases of gold over time.

[00:24:31]>> And and there were these there were a lot of little countries in there, but there's basically the US and China, right? So, China's orange and the US is blue, let's say, in this chart, right?

[00:24:41]And then for half the chart, it's big orange and no blue. And then as as the as the orange shrinks, the blue increases. It's almost like they are on the phone with each other saying, "Look, two big players are in the market. Let's not let's not compete with each other at the same time. I'll buy when it's my turn to buy. You buy when it's your turn to buy. And now it's probably China's turn to buy again."

[00:25:02]>> Right. And then we're going to move the price and we're going to move the price of gold higher because again, this now goes back into why why would I've been saying for I've been saying to you for a long time and and Vince and I have been chatting about for a long time. you know, when you start running out all of the uh the consequences of moving from libore to sulfur, you say, "Oh, that's because now the United States needs to deal with the asset side of its balance sheet and improve that versus the debt side, the debt side of the balance sheet." And how do you do that? Well, you raise the price of the collateral assets you've got on your balance sheet and one of those. And so years ago, I said, "And what will bake your noodle is the day that both gold and the dollar go up versus everything else at the same time because the because the dollar bears will be wrong when the do when the US starts defending itself. It's going to take its big pile of gold and it's going to want to raise its value, >> right?

[00:25:52]>> And then the thing that that would really bake your noodle is a day that I used to say the Fed would put Bitcoin on the balance sheet, but the Fed's never going to do that. But the United States is putting Bitcoin on its balance sheet and it's and what I didn't see back in 2022 2023 before Trump returned and Bessant came in and started changing the way we we operate is, you know, I was still operating in the idea that the Fed would still be the the issue of monetary units, right, without the Treasury taking things back over. Now that we're moving into a Treasury dominated world, we It doesn't matter that I was wrong about the Fed putting Bitcoin on its balance sheet. What matters is that the United States is putting Bitcoin on its balance sheet, >> right? It's getting put on it's an as Vince Tom, there is so much information that you're saying there's so much I want to dig into that bit and then there's that bit and then there's that bit. Right. So, let me take it back a little bit and see if I can keep up because you mentioned Tom about this is >> I think twice an assault on this on the city of London.

[00:26:52]>> Now, my understanding it would really only be an assault if gold buyers were demanding delivery.

[00:27:00]Otherwise, they can just get cash settlement or contract. But are they going to be demanding delivery?

[00:27:07]>> Yes, >> that's that's the point.

[00:27:08]>> And how do you know they're this time?

[00:27:10]Maybe >> because China because China because China is a is a physically settled market.

[00:27:16]>> Right. Right. Right. Yeah. So, so, so let me just jump in here for a second.

[00:27:20]>> Uh, uh, Rich, >> um, just following Tom's cycle, right?

[00:27:26]I'm not sure if I get it all as well myself, but following Tom's cycle >> during the panic for dollars, first of all, all financial roads lead through London, >> right? So either either either either they're orchestrating what's going on or they're going to benefit from what they can't orchestrate. In this sense, when they saw that there was a squeeze for dollars, they got Turkey to puke their gold. They got Turkey to puke their bonds. That's at least that's that's how I'm taking it. Now China says, "We're back in the market. We're going to start buying gold." So that gold's going from Turkey to London to China.

[00:28:08]>> Oh, >> you see?

[00:28:10]>> Oh, >> and and and to your your question about financial versus versus versus physical.

[00:28:16]That's the thing. The Chinese demand is physical. It's not financial. So, they're just draining they're draining everyone. Every time gold gets sold somewhere, they're there with their hands out to buy some.

[00:28:26]>> Right. But Vince, I just think that's really really mean. How are the city of London LBMA financiers going to rehypothecate infinitely against gold that they don't have? How are they supposed to survive?

[00:28:38]>> I, you know, I feel bad for them as well. I feel I feel I feel, you know, it it's first of all, I mean, it's quite heavy gold and so they have to carry that.

[00:28:50]So, just so you know, Vince, like I know I can see your eyes like bugging out every time Vince every time Rich asked to really It's because he and I have been doing this conversation for 10 years and I actually educated the [ __ ] [ __ ] out of him on this. So, I'm a little bit of a sandbag here that you like, but I I did it on purpose, my friend, because >> I saw I saw you a little bit like what was he saying?

[00:29:09]>> I love both of you, by the way. So, so >> no, but look, I mean, uh I I bring that up because there was a uh there was a uh there was a board, an executive on the LBMA who actually used that reference.

[00:29:23]He was talking about silver, but an executive on the LBMA actually said that. So, I'm not saying that. Oh, that was said.

[00:29:31]>> It was mean. How are we going to rehypothease?

[00:29:34]>> Not that it was mean. He didn't say it was mean, but it is mean. He's definitely his feelings were definitely hurt. the LBMA feelings were definitely hurt and and they were concerned about how could they move all this gold so fast it's very heavy and he actually said it he said we have a lot of lorries in the yard uh I had to walk around piles of gold today it's very heavy you know we're doing our best to get it out as soon as we can and and yeah I mean yeah you're joking about about it being mean but yeah the LBMA executives uh bureaucrats I should say bureaucratic executives, they want some sort of sympathy and so we should give it to them.

[00:30:14]>> I think so. Can you please in the in the comments, please send some sympathy to the City of London financiers.

[00:30:21]>> This is not where I thought this >> is not where I thought this conversation was going, but I'm enjoying every [ __ ] minute of it. That's all I have to say. This is grand. Like, >> we have a we have a u uh what is that?

[00:30:34]Um uh co coffee coffee uh Kof Kofi where you >> please so please we're going to leave a link in the uh reply >> coffee to the LBM executives >> buy me a coffee right >> send them send them some gold real gold >> yeah exactly no >> they don't have any of that they don't have any okay all right Um then the then was there something happened recently some declaration by Scott Bessant that they're going to allocate a certain amount of money to buy Bitcoin over the next few years or so.

[00:31:18]>> Oh yeah yeah yeah >> like a new announcement Tom.

[00:31:22]>> Yeah I think there there was there's also obviously the executive order would say that all of the Bitcoin that the government has confiscated is now going to be put under the rubric at the Treasury. the Treasury is going to own it. It's no longer going to be sitting on wallets at the CIA or, you know, the, you know, this department or that department in a, you know, on a treasur in a in a lock box, you know, in a filing cabinet somewhere. No, no, no.

[00:31:44]All those accounts need to come to the Treasury and Treasury is going to put all they're obviously they're going to put that in the sovereign wealth fund. I think that's where they're going to put that. Um, I don't see them >> buying more Bitcoin. that I wouldn't doubt that they were going to buy more Bitcoin, but I don't I didn't I didn't actually see an announcement, but >> I haven't heard that yet. I haven't heard that yet, Rich. But Rich But Rich, we're on a path to that, you know. I'm not I'm not We're on a path to that. It starts with all the confiscated Bitcoin gets put into this little block box and then we call this little lock box the strategic Bitcoin reserve. Now, I'm not saying that I think it's going to happen or not happen, but that is the path, >> right? Right. start with and then you say, you know what, we're going to buy some Bitcoin back. That Bitcoin that we sold that we didn't have to sell, we're gonna buy that back. And then, you know, it's three years down the road and the strategic uh the sovereign wealth fund is buying Bitcoin with with uh the Bitcoin with >> with profits from Intel with with profits from in from buying a 10% equity stake in Intel, for example. Um and this is another reason why I want everybody to not freak out about the weakness in Bitcoin. Who do you think is selling bit? Who do you think is forcing Bitcoin in liquidation while gold goes higher so that you can now so when gold is going higher, you're buying Bitcoin on the down low and you're getting it? Look, institutions don't want to pay top dollar. They want you to pay top dollar.

[00:33:05]You're the muppet. You're the pleb. You should buy the top and sell the bottom.

[00:33:09]They should buy the bottom and sell the top. So, this is one of those things.

[00:33:13]And when you have when you also have the cyclic, you know, the four-year cycle in Bitcoin say that this is supposed to be a bare market, it's not a hard, you know, you can get the momentum traders to get out of, you know, the algo traders get out of the way. I was talking with with Nick, the algo cow cowboy about this because he's also part of the community now. He's like, I just see this is the four-year Bitcoin cycle low and this is normal and and so into that you're if you're uh if you're an actor that wants to accumulate Bitcoin, you're going to keep putting the pressure on for years. Gold sat there in the in the 1200s, the 1500s, the 1600s.

[00:33:47]Who do you think was sitting on that price? Do you think that was the United States? No, that was China and Russia who were buying the [ __ ] out of it and accumulating like mad. You accumulate, you suppress the price to accumulate.

[00:34:00]You don't suppress the price, you know, to defend the dollar. That's always a dumb argument like >> China, right? China doesn't want gold to go up. China doesn't want Bitcoin to go up. China doesn't want silver to go up.

[00:34:11]it wants it to go down so it can buy it.

[00:34:14]>> The problem is they're just not very disciplined in their own buying. So it's really it's really a comment on their on their structure. You know >> and and there and there comes a point where as well you know what I've always said is that there's a negoti this is just a negotiate this is just a path to the negotiated settlement price whatever that whatever that price is going to be and there's been a negotiated price for the high for the high end on gold the high end on silver and high end on Bitcoin by these big players. They have negotiated that price. They've already had that conversation. Okay. I don't know what it is. I can guess, but it's up there and it's going to be whatever balances the books of the United States and some of the internal debt positions within China itself. Because remember, China's got like internal debt debt [ __ ] that it has to deal with as well because it's run this crazy mercantilist playbook, this crazy Hamiltonianesque playbook, but they've gotten a lot for it.

[00:35:05]>> Um, >> yeah. You know, you know, to to to I just want to add this to Tom's point.

[00:35:10]Everything Tom just said manifests in the fact that the yuan is going up against the dollar.

[00:35:15]>> Yes.

[00:35:16]>> Even while the dollar has been strengthening, the yuan is going up. So this whole this whole, "Oh, that's crazy. They're not taking turns. They're not doing this. They're not pre-arranging." Uh, yeah. Well, look at the yuan and look at the dollar. The dollar is strong compared to the euro.

[00:35:32]The dollar is strong compared to most other countries. But with regards to the bricks, especially China, the yuan is going up. China's got yields at like 1%.

[00:35:42]China's economy is, depending on how you look at it, struggling or doing well.

[00:35:47]China's economy is just basically just buying a lot of gold. Why is the yuan stronger against the dollar if >> America's doing so well? And the answer is because China and the US are working a deal.

[00:35:59]>> China is raising. We want a weaker dollar down the road eventually because we want to be able to export things. We can't export things if the Chinese currency is too weak. So the price that we pay as Americans for a new order is we need a weaker dollar against the yuan. And China is buying gold with the yuan that it prints. So basically the reason the yuan is strong is because they've been buying gold.

[00:36:29]>> That's basically so that's of what Tom's saying.

[00:36:32]>> Yeah. No. And this and this and this tracks completely with and remember this the point about the the the the the borrowing rates inside China are subsidized at between 1 and 2%. Right, for industrial and what by the way we're going to wind up with that same model where we're going to have treasuries trading at four or 5% but the cost of capital to do you know a big infrastructure build like a pipeline or or a new railroad or this or that.

[00:36:54]That's all going to be financed at 2% 1%.

[00:36:57]>> That's what Vince and I have been talking about for years now. how we're going to have the cost of an offshore dollar be higher than an onshore dollar.

[00:37:06]And the United States and Trump and everything he's been doing has been to tell everybody who's got money overseas and they don't know where to invest it.

[00:37:13]If you want to invest in the new American story, you're going to get preferential rates to to invest in the United States and get a higher return on your capital because you're going to invest it here, you know, at you're going to loan that money out at 2%, but you're going to get 8 to 10% or 12% on the back on the back end on the investment that you put in place because we're not going to sabotage that. Now, Democrats and Davos and City of London and everything else are doing everything [ __ ] imaginable to stop that from happening. It's why they're that's why I I'm I'm firmly convinced that that all of this has to do with stopping Fanny and Freddy from coming back onto the market in order to you know that's one angle on it. There's other angles as well but remember I know Vince I don't know if you and I really talked about it or how much you know you have been following it but this is why Trump is standing up all these these um credit facilities within each of the executive branches. So the department of defense is has its own credit facility. The the the department of energy is going to have its own is having it is getting its own credit facility. This is very Hamilton this is what's happening. Yes.

[00:38:17]This is exactly what's happening. That's incredible.

[00:38:18]>> So each department gets their own credit facility >> is getting their own credit facility to do to do the to do the big work. And that's basically the that's the Hamilton that's what I said earlier when I said the China model really is the Hamiltonian model.

[00:38:31]>> Right. Right.

[00:38:32]>> Okay. Banking. Isn't that like one of those Doge printing machines in the that >> you know the those those machines that the the computers that Doge discovered that were just printing money for department how does okay how does a department a government department create credit >> you offer loans >> but where do they get the money from >> they get the money from the treas they get the money from the treasury they also just they create that the money gets created out of the money gets created as stable coins it's going to get created as stable coins still gets created but a much lower interest than it via the bank >> than having to go to the federal having to go to the Federal Reserve and be and be dependent upon the the foreign creditors willingness to you know to to are you saying let me see I want to try >> we're bypassing the Fed and going directly to the Treasury >> right >> so basically each department has its own credit division and that credit division then says to the Treasury >> we're going to do this, we're going to do that. And they say >> fine. The treasury's in the Treasury is in on it, obviously. And the Treasury and then the stable coins are going to be, you know, they're going to create they're going to stand at these credit facilities. They're going to offer they offer these loans to build a pipeline.

[00:39:46]The the the stable coins are going to get created. The in order for the stable coins to get created, they're going to go buy four week or six weeks T bills to back the back the stable coins one for one. Get the money flowing to build the to build the thing out. We're going to pay T bill rates on the money. And eventually, and this is why we're, you know, at some point, this is why we're going to watch the Federal Reserve be able to lower interest rates necessarily, or we're going to have two different, again, I've been saying this for a long time, folks.

[00:40:13]>> Inside, outside, inside, outside, >> inside, outside. And moreover, we're going to watch sofur and these markets, the the sofur market re-regionalize the Fed funds rate and make the Fed funds rate irrelevant.

[00:40:29]>> Right. Right. that Dun's raid is eventually going to go the way of the dodo. And I said this the minute I saw what was happening here four years ago.

[00:40:36]I and again asked Daniel D. Martino about this on my podcast back in 2022.

[00:40:41]And I said, "Does this not give you give us the opportunity to be regionalize the the the the Fed funds rate and get back to the original conception of the Fed where we have regional interest rates in the United States." And he's like, "Oh, absolutely. This the banking system is never going to go is never going to allow that to happen." That was 2022.

[00:40:57]Here we are in 2026 and the world is a little different.

[00:41:00]>> Right.

[00:41:00]>> Right.

[00:41:01]>> Okay.

[00:41:01]>> Because Trump is back in power.

[00:41:03]>> But Tom, isn't this going to do harm to the American banking system?

[00:41:10]Because I can see how Trump is building this system to bypass the Federal Reserve. And he's doing it slowly, step by step by step by step, >> in order to so that he prevails and he doesn't get shot by like JFK did and Lincoln did or whatever. Right. He's still trying to shoot him.

[00:41:27]>> Yeah, they're still trying to shoot.

[00:41:28]Well, he hasn't got killed, thank God.

[00:41:30]So far, right?

[00:41:31]>> So, >> but then the American bankers will suffer as well.

[00:41:36]>> Then we we we need to have a round we need to have a Kofi donation link for the American bankers.

[00:41:42]>> No, no, no, no, no, no, wait, wait, wait, wait. Tom and I Tom and I are on the same page in this, but let me just say this. American banking will consolidate and vertically integrate.

[00:41:51]>> There will be less American banks.

[00:41:53]regional banks will will consolidate even more. They'll be basically the last man standing for banking.

[00:41:59]>> Well, and also there will >> there'll be more regionable regional banks, but the big banks, I mean, Spirit of Thought for Goldman Sachs, the the Vampire Squid, what are they going to do?

[00:42:07]>> Well, they're going to get out. I think they This is where we get into the whole clarity act and and the argument about yield and this and that and everything else. And I really do think that with this change that's coming, they want they want out of this financialized casino as well. It doesn't work for them anymore. Why would they stay in it? It was the best game in town when London controlled our markets. But they're the ones who put this [ __ ] in it. All of this started because the bank because the American banks wanted sofur. The American banks wanted Trump to take power. The American banks wanted all this. the big money center banks were the ones standing behind Trump and well well really Powell originally and to stop the Democrats and Davos from forcing more ridiculous spending that would put more power into the Federal Reserve. Like this is this is the shadow this is the thing you can't quite see. This is the reflection of power that you can't quite see. And I've been saying for a long time now everybody thought I was nuts, but I'm like how else do we get to this point if they're not on board with this? Because the the give for them is they're they're going to be they're the ones who are going to build out the the they're the ones who are going to finance the buildout of Alaska, the moon, this SpaceX, all of this [ __ ] That's their that's where they're going to go and they're going to make a fabulous amount of money on it. Meanwhile, the small regional banks will go back to doing what they do best, you know, financing libraries and tool and die shops and tire facilities and, you know, plating shops and all the and, you know, rubber companies and all the rest of this stuff that we need in order to build the supply chains out to re-industrialize.

[00:43:41]That's way >> big fine, Rich. The big banks will be fine, Rich. They're going to be they're going to be the ones issuing the stable coin >> and doing the merchant banking. They'll be financing the roads being built, you know, internationally. So there'll be American like you know it's kind of like >> Americans won't tolerate CBDC, >> right?

[00:44:01]>> And Scott Bessant said something this week. There's going to be no CBDC's.

[00:44:06]>> Yeah, >> we won't we won't tolerate it. I mean it's it's it's too antithetical to how we operate. However, however, again echoing what Scott has implied. Well, but we are going to have stable coins.

[00:44:19]And so the government doesn't control stable coins. The banks do. and we'll just control the banks. That's basically it. So, >> and and and then there's one other there's one other other other angle on this. I was thinking about this yesterday when I was I was working I was working on my my latest issue for Newsmax and I said, you know, if you stop and you you back up for a second, you say, where's the comparative advantage for us to do this? Well, we still have private property in this this country. The stable coins are your private property. they are still they are they they still have a legal mechanism for you to continue to own the the claim to that dollar. A CBDC is owned by the central bank that you get to rent. Okay, there's a fundamental difference in that legally and that is the United States superpower which is our legal structure, our corporate structure, our all of these things. So, at the end of the day, this, you know, we're going to like the the government, as Finn said, is going to control the the the flow of this, and the and the American people will have a the opportunity to interact with that system in a way that is best for them, and they will make the trade-off between privacy and efficiency, but they'll have option.

[00:45:34]They'll have an option.

[00:45:35]>> There will be enough free market. There will be enough free market to make it work because JP Morgan's gonna have a stable coin and Bank of America is going to have a stable coin and ultimately they answer to the government but the government's not going to be snooping around JP Morgan every day. So JP Morgan stable coin will be like for example to stay with use gold for example. The JP Morgan stable coin will be for delivery of a 10 bar of gold >> and the Bank of America stable coin will be for delivery of a 1 oz bar of gold.

[00:46:02]Well, certain types of customers go to Bank of America. Certain customers are going to go to It's like going to a grocery store. How many types of toothpaste are there? And so, the stable coin becomes a free market product within the US and actually becomes the needle of injection into other economies because they'll be using our stable coins instead of their own local currency. But that's that's another topic alto together.

[00:46:26]>> That is another topic alto together. The the global red dollarization that's going on. But this is the me this is the mechanism. This is the fundamental difference between you know um this is and and this is why cash is not going to go all the way to the United States either. This is kind of the reason why Trump is floating and and Besson are floating this idea of the $250 bill with Trump's face on it especially hilariously with his mugsh shot.

[00:46:53]>> I saw that. That is hilarious because that what they're saying is look we can still so you can still have private money.

[00:47:03]>> You can still have outside money that ex that exists outside the banking system if you want to do. So there's still going to be that whereas when you look at the way Europe is operating and they're talking they're talking about everything nothing in everything inside the ECB nothing outside the ECB.

[00:47:20]>> It's classic Mussolini fascism. Well, I'm going to move to Europe in a moment, but I want to make a comment. I'm listening to a biography of uh Benjamin Franklin. Remarkable, remarkable guy, and how his face is on the and it it says in this biography, his face is on the largest denomination dollar bill.

[00:47:38]$100 bill. And I think Benjamin Franklin, that makes sense to me. Oh, no. Wait a minute. Along comes orange man.

[00:47:45]>> Orange man.

[00:47:45]>> 250 mug shot.

[00:47:49]>> Yeah, he is the funny president. And the funny part about it and the sad part about it is that when you go on Twitter and you listen and I tweeted this thing out yesterday and every and of course all the retards immediately like, "Well, we're going to need that with all the inflation that's coming and blah blah blah blah." I'm like, "The inflation's already happened, guys." Yeah.

[00:48:05]>> Like of the Kypen that we're talking about, it's already happened. And my argument's been for a while now. And this is when I I I go, you know, an 18-year-old can go out and get their first-time job in the United States and they're getting paid $13 an hour to bag groceries.

[00:48:21]Okay, you do the math on what $13 an hour actually is. And then you say, "Okay, well, you got, you know, four high school graduates bagging groceries or, you know, whatever they're doing, 13 to 15 bucks an hour." Oh, by the way, they can go in together on a starter house.

[00:48:39]They have enough, you know, income times three, folks. That's three, that's four guys making 20 grand, 20 25 grand a piece. Income times three is $300,000.

[00:48:49]Take those four guys at 25 grand a piece. That's $100,000 in income.

[00:48:53]Multiply income times three and that's what they can afford in terms of the price of a house.

[00:49:00]Excuse me. Those numbers those numbers balance. I I ran those numbers for my daughter when she got her first job and she's making 29 grand. Okay, she's making 29 grand working at the University of Florida. But the g but again this basic idea said get you and two roommates. You can afford you know and you can do this. you can, you know, find a man, you know, and get a roommate and you guys can now afford a basic starter home in the United States is $200,000. And there's plenty of starter homes in the United States of 200 grand.

[00:49:27]>> And that's where the US is going to come in and help uh in that respect. That's where monetizing the balance sheet uh the asset side of the balance sheet is what Bessent needs to do or what he's trying to do.

[00:49:40]>> Right. And that's what and that's why we need to open up. That's why getting Japan and China commitments to buying Alaskan oil now spurs an entire investment cycle to push trillions of hundreds of billions of dollars worth of investment into Alaska to bring Alaska from a from a an also ram producer state in the United States of oil and gas to a powerhouse which then shifts the uh focus of the world away from the straight of Hormuz to the Pacific Ocean.

[00:50:12]and the Gulf of America.

[00:50:13]>> Okay, I want to there's so much >> that's a 10-year plan, but it's still it's still a plan.

[00:50:18]>> I got to say we do need to do this again because we haven't even got into silver and oil, right? And the other commodities that move the market, including copper, right? Right. But >> probably there. We should probably leave that there.

[00:50:29]>> I think we go No, I'd like to go to the UK and Europe, right? Because what what you're describing is happening in the US is really really great, but you guys are missing out.

[00:50:39]missing out on the incredible opportunities that the ECB and the city and the UK Treasury is creating for its citiz.

[00:50:57]>> Yes, that's right. I was going to get to that.

[00:50:59]>> I know you were.

[00:51:00]>> What about the values? Hey, what about the diversity? Yes.

[00:51:04]>> What What about supporting all the Africans and the Middle East people and the Asians that are flooding in? Don't they deserve CBDC's too?

[00:51:12]>> Sure, they if they want them, they can live in a digital prison.

[00:51:17]>> It's funny.

[00:51:17]>> How is it all this going to impact the ECB and >> the UK?

[00:51:22]>> Let me start. Yeah. Yeah, absolutely. Go for it.

[00:51:25]>> All right. So, so, so Lagarde, they're nervous about stable coins. This is about the stable coin mechanism and how it works.

[00:51:34]>> If if there's a CBDC, then the CBDC that's owned by Europe, let's just put it together, just say Europe, the Euro, a CBDC. Um, then that'll control international trade in and out across the borders. Now the problem with stable coins is stable coins literally become you know they talk about a stable coin wallet. Well let's pretend that every citizen in the in the in the uh in the EU has two wallets. One wallet has CBTC in it and another wallet has US stable coins in it >> and they want to buy something. Well if US stable coins are accepted they might use US stable coins. So the stable coin coming into a nation that's trying to adopt CBDC disrupts it and it prevents people from using it. And so Europe never locks down their own currency and eventually the red dollarization of the world happens with stable coins injecting dollars into people's pockets in other countries. Europe is Europe is panicking about that. That's that's Europe's panic and that's why it's like values and all that [ __ ] right? Which is why we need digital ID and intensive surveillance and verification on every website for our own good.

[00:52:55]>> For our own good >> and and and and the more that US stable US dollar stable coins now we'll go now we'll invoke my my my my friend Caitlyn Wong talking about Tether um dollarizing Africa and Central America and South America. That's another that's just another stable coin. And by the way, Tether bringing dollars to those markets and st and economic stability to those markets.

[00:53:21]Like you have to think of it as pressure. Like the rest of the world is dollarizing and if Europe is saying no, you can't use dollars. And to Vince's point, what would Lagard say? Oh, the US dollar stable coins can't circulate in the internet inside Europe. You have to trade all your stable coins at the at the border, turn them into digital euros. Well, I got I got news for you.

[00:53:40]the market will move its money. Well, mark markets money moves to where it's treated best. If they try to lock it down, Europe will just continue to wall itself off. We won't even have to build the metaphoric John Carpenter wall around Europe. They'll build it for themselves.

[00:53:57]>> Okay? And then the problem that the European Union and the UK which is on the same path will have is when they want to import something from you know they want to buy more oil and gas because Vince just so you know you'll know that the European Union has sanctioned itself off cheap Russian gas and energy but the UK is being very smart. We're keeping it safe in the ground.

[00:54:21]>> Yes.

[00:54:21]>> So it won't get wasted. Right.

[00:54:24]>> Right.

[00:54:24]>> Right. Right. The UK is is saving the earth and keeping its energy uh clean.

[00:54:29]>> Safe. Yeah. But keeping it safe, right?

[00:54:31]You know, we don't want to lose it or use it. So, it's just going to be >> We don't want to use it.

[00:54:34]>> Yeah. We're just going to hoard the oil and gas rather than our home.

[00:54:38]>> Did they just stop they I mean, this is I don't want to get you all off your off your beat here, but didn't they just pass a law uh that would restrict uh more permits?

[00:54:48]>> Yeah. and they closed down the Grange refinery uh a year or so ago. So, we can't refine oil and then they're going to say no more new um uh investments into oil and gas.

[00:55:00]>> And yeah, and we can be self we could be self-sufficient, but it's much better to save >> to save the gas and oil than to warm your >> remember what what um what what Bonderland said about two months ago.

[00:55:15]the cheapest uh or the cheapest energy that you can buy is the energy you don't use.

[00:55:21]>> Yeah, that's really good. That's >> so basically austerity, right?

[00:55:26]>> No, no, no, no. Cold >> cold basically cold death.

[00:55:32]>> Well, you know what they're what they're worried about, of course, is that so many people die from lack of air conditioning in Europe every year more than you know that they're trying they're trying to stop that, you know.

[00:55:41]>> Yeah. They want to save us, right? For >> they want to save Yeah. They want to save you by killing by killing more of you.

[00:55:47]>> But I'm shaking my head. They really are suicidal.

[00:55:50]>> They're genocidal. They're genocidal.

[00:55:53]It's part of that whole genocide program, right? And at the same time, they want they want to go to war with Russia with with wind powered and powered drones and airplanes.

[00:56:03]>> And did anybody notice the 180°ree flip that Mark Carney over in Canada did in the last 48 hours?

[00:56:09]>> I saw that. Yes, I saw that. And then Tony Blair as well.

[00:56:12]>> Yeah. Well, Tony Blair is a snake in the garden trying to get himself back in in in our good graces so he can be the so he can be the guy. So, but what's interesting is what I'm noticing and this is interesting that the thing that the most the most signal that I saw this morning, Vince, you saw those other things about China and gold and >> Yeah, I didn't see the Carney thing at all. So, tell me what you look. It's the big signal for this morning is N.

[00:56:38]Gingrich puts out a massive tweet that he's now completely he now gets what Trump is trying to do in Iran.

[00:56:43]>> He backs Trump. He backs Trump now. That is a that is a massive piece of signal.

[00:56:49]And what that >> Tony Blair >> that is a massive piece of signal saying this. Ready? Oh, we finally get it. The GOP, the GOP establishment finally gets that they can't stop Trump from winning the midterms. They can't stop Trump in any way, manner, shape, or form. They saw what happened to John Cornin the other day and they finally had that I on Wednesday I said Wednesday morning for the market report, I said the lunches in DC today, the day after Cornin got shellacked by 30 points.

[00:57:21]The lunches in DC were like, "Oh [ __ ] we're not the power in the United States anymore. What do we do?" And then Nuke Gingrich 48 hours later confirms that there there's real panic in the political establishment in the Senate which is our version of the House of Lords is now sitting there going what do we do because Trump just got three scalps in the Senate. This has not happened since FDR.

[00:57:52]Okay. Getting scalps in the House is easy. Getting scalps in the Senate is nearly impossible. And the Senate has always seen itself, especially in the modern era of the Senate, that they are the real power in the United States.

[00:58:06]that no matter what happens, as long as we control the Senate and we can try we can stop everything and we can and we can continue doing the quote quote unquote God's work to to um uh operate the United States on behalf of the people against, you know, who don't understand what's best for them. We understand what's best for them. They don't and we're the real power. And that has been been really the undercurrent of all of this fight with the United with with Trump between Trump and the Senate all year with John Thun and all these guys and watching McConnell's boy get taken out Massie in the House getting taken out at the same time. Cornin getting taken out 30 years sitting senator on with on four major committees gone. Wow.

[00:59:01]and Tillis and Cassidy and and an end.

[00:59:05]When you're watching all of that, that means in 2028, I got news for you.

[00:59:09]Marcowski gone. Ran Paul going to be in serious trouble. Like the American people get it. Even if they don't get it, but they get it back here. They may not be able to express it, but they get it. And Trump understands this. Trump understands this is not a normal election cycle. and they're beginning to realize they have made a terrible, terrible mistake and that this is a juggernaut that cannot be stopped.

[00:59:38]>> Very good.

[00:59:38]>> That's the way I'm reading what I saw this morning politically and we're going to see more of this as we go forward.

[00:59:44]>> I don't know anything about that, but I don't know anything about that. But I I I I will add that I have seen uh a couple posts by Gingrich and I'm like, where did he come from? Why is he talking all of a sudden? And I guess it's because uh it's kind of like a come to Jesus moment for the establishment.

[01:00:00]>> Yeah.

[01:00:01]>> And he's Yeah. It there's that and the the when when Nuke Gingrich is the ultimate puts his finger in the wind and tries to figure out what's going on. Ted Cruz will be the next one. Rick Scott yesterday refused to gave in of the proform session to stop Trump's recess appointments while the Senate was out.

[01:00:23]Rick Scott understands where his bread is buttered. They got some jun they got some, you know, other senator to to do it, but Rick Scott said no. That's a big tell. Rick Scott's a powerful guy in the Senate.

[01:00:36]>> Wow.

[01:00:36]>> So, you've got to this is watching this part of the the the story is really important and it's why you're watching I watch it from the other the other side of it, of course, because I brawl on Twitter all day long. I'm watching the narrative shaping that's going on. And the narrative shaping that's going on is that Trump didn't win, didn't do anything for Cornin.

[01:01:03]Like Cornin was going to lose anyway by 10 points. So him losing by 30 doesn't matter. I'm like, oh really? Like how are you spinning that one? [ __ ] This is this is a Steve Bannon style slop that's been going on for a while now. and everybody in his orbit is like they are panicking in a way that I have not seen before. And that's why Barbara and and Susan are talking about how deep this how over the top the scops are and and all of this. So there's a lot going on and the dam is beginning to break.

[01:01:32]And when I was I said the I was talking having this this exact conversation with again part of the conversation I had with Dexter White earlier this morning.

[01:01:40]I said as we were lay uh as we were you know shutting down I said one of the things to start watching is bricks are being removed from the wall of opposition to Trump slowly but surely and it's going to be and it's going to be like everything else slowly and then all at once and so now we should be watching this weekend to see what comes out of Iran. We should watch this weekend to see what happens with Ukraine because those things are lynch pins to Trump getting the big win that they've been trying to stop him from getting.

[01:02:11]And the reason that Iran has been playing the game that they've been playing is because they've got they're getting told by Obama and Blair and this one and that one and all the rest of them that just keep waiting Trump out.

[01:02:24]We've got this taken care of. We're going to get rid of him or we're going to win the midterms and blah. And slowly but surely, everybody's beginning to realize they're not going to win. And you know, if I didn't see these receipts, if I didn't see a guy like Gingrich come out of the woodwork and declare for Trump after fighting him for however long, the never Trumpers are starting to turn. The GOP establishment is a slightly different faction starting to turn.

[01:02:53]Everybody's now having to like figure out how they're going to keep their griff going.

[01:02:58]And the truth is is that they've already outed themselves as to who they actually work for.

[01:03:05]And now they are and now they're all trying to figure out how they how they survive. And Trump will never >> try to be free agency, >> right? And Trump is and Trump will never forget what they've done. They may get through the next election cycle. They may get through, but once but once we get through the midterms, we get to 2028, oh, there's going to be a whole raft of both people retiring all of a sudden, not running for reelection or primar.

[01:03:35]This is coming. The the the um the revolution at the legislative level in the United States is is uh is is in swing. There's still it could still go sideways. Like, it could still go parachute. like we could still he could still lose. Like don't get me wrong, it's it's fluid. It's in process, but it's moving slowly in his direction.

[01:03:54]That's the way I see it.

[01:03:56]>> Okay, >> Vince, you want to respond to that? And I do want to go back.

[01:04:00]>> I wanted to ask a question. I wanted to ask a question. So, so, so again, >> deferring here.

[01:04:06]>> So, you've got Gri in the US, you've got Blair in Europe, and you've got Carney in Canada all >> cowtowing >> to the Trump thing. What did Carney do though? I don't know what Carney did.

[01:04:20]>> Um, he uh being being um that Canada was going to align itself with the United States and be a strong partner and work with them to make America great again.

[01:04:31]>> I mean, he he effectively Yeah. This is this is a week after he tested the waters with Alberta's not allowed to secede.

[01:04:39]>> And then the and then Quebec stood up and went, "Fuck you."

[01:04:43]>> Who who stood up, Tom?

[01:04:44]>> Quebec.

[01:04:45]>> Oh, Quebec. You're right. And this is this is important. I was on I was on a podcast the other day with um with a couple of guys, a couple of Canadians.

[01:04:53]One who's Albert and Dave Bradley and another guy cannot remember his name Nolan who's a who's Quebec. And they were informing me about um the internals of Canadian politics. He's like, you got to realize that Quebec is always like one step away from leaving Canada like every other Thursday. Like it never goes away. It never goes away. So Carney coming out and saying that and again this goes back back to who did he put in as governor general right this woman right Susan and Barbara clued in on that one that he was getting set up or they were setting up for an epic fight to stop um provincial independence. The problem is you lose both Alberta and Quebec and there is no Canada. I mean there just isn't. Canada breaks apart into seven different countries like that.

[01:05:41]Wow.

[01:05:42]>> And uh Yeah.

[01:05:43]>> Okay. So, >> all right. Fascinating.

[01:05:47]Thank you both. Right. Back to the European Union and the UK.

[01:05:51]>> Sure.

[01:05:51]>> So, so the problem that they will have with the CBDC, I think, as I understand it, then is if they want to go and buy >> some steel, some iron.

[01:06:02]>> Yeah. Whatever.

[01:06:02]>> Right. Anything they want to buy, who's going to want to take their CBDC, >> right? they have to have these tremendous deals um cut to encourage others to use the Euro CBDC. And I'm sure it's going to be part of a basket, but it's going to do two things. One, it won't be as much it won't be as much of a part of a basket as it would be if it was a stable coin >> because it won't be as fluid. And two, it'll uh cause the euro in general or the UK, the British pound or whatever, whatever, what have you, to be weaker in buying power because it's limiting itself. That's what Tom's talking about with the free market. If it limits itself to be a regional currency, then it's just a regional currency, >> whereas everyone has dollars and they'll still have dollars.

[01:06:49]>> Okay? And I just thought of something else, right? That if if France wants to buy gold of Bikina Faso and it offers Bikina Faso this euro CBDC, well the risk with the CBDC is that France will be able to take it out of the wallet, change the value of it whenever they want. Right? whether it goes into the Bikina Fasil wallet or not, >> then there's this currency that's incredibly controlled and centralized >> by Europe or the Bank of England.

[01:07:20]>> Mhm.

[01:07:21]>> Then why would any the British the British and European citizens don't want it? Why would other foreign nations want it?

[01:07:27]>> Well, exactly. I mean, if if I could if I could, let's use Bitcoin as an example, right?

[01:07:32]>> It's a perfect example. Okay. So, I am a citizen of the European Union and I'm inside using Tom's concept of the border, outside the border, inside the border and I'm standing inside the border and I want to buy Bitcoin. Now, either Europe is going to say you can't buy Bitcoin because CBDC is not allowed to be used for it or they'll say you can buy Bitcoin with CBDC uh but it's going to be monitored and regulated by us. Mhm.

[01:08:01]>> Now, I get in a taxi cab and I cross the border to the outside of the border out of Europe and I'm I'm somewhere else and I go, "I want to buy Bitcoin." And they go, "Sure. What do you got?" I go, "I got stable coins. I got tethered stable coins. Can I buy them?" Sure. Done. And that's it. It's over. So all you have to do is you you create this horrible trade zone that you can't do something on one side of the border that you can do on the other side of the border freely and you create friction that causes less and less trade for the European Union to uh be a part of. Anyway, Tom.

[01:08:33]>> Yeah. No, you're right. You're right.

[01:08:34]This is why I I I I I noted the um the the complete collapse of Europe, the Euro settling non-European trade as a function as a percentage of global trade right after they sanctioned Russian oil and it went from 35% of non of receipts down to 14. That was literally the Russian oil trade.

[01:09:00]>> Wow.

[01:09:00]>> Right. The world's not de dollarizing.

[01:09:02]The world's durizing.

[01:09:04]>> Yeah. The world already durized and it's now red dollarizing.

[01:09:08]>> Right.

[01:09:08]>> And what about the pound? Depoundizing.

[01:09:11]Well, that the pound is only a liquidity token for forex, global forex. That's going to get replaced by stellar lumens, ripple, and everything else and US dollar stable coins.

[01:09:22]>> Well, I don't have to elaborate on that.

[01:09:24]>> Oh, okay. So, so the British pound again, one of these for everyone I get, I know you want to hear. Yeah. Yeah.

[01:09:33]Yeah. So, so about about three or four years ago, somebody I I finally somebody I I ran across a data point that said the the British pound still settles like 30% or 35% of the world's forex transaction.

[01:09:47]So, do you want you've got Turkish LRA, you want to buy dollars, you've got a you go through a a London bank and the London bank deals with it. But the intermediary, the interstitial thing, they don't trade Lero for dollars. You trade euro for pounds and then pounds for dollars. Okay, >> that's how the pound maintains >> correspondent banks. That's correspondent banking, right?

[01:10:08]>> Okay. Correspondent banking. So you now so in that respect when you when you norm everything out what's the underlying liquidity token? The British pound, right? Because while that while that's settling, while that's clearing it, the money is actually parked in British pounds. Okay? So, you know, I'm buying I'm a you know, I'm a Turkish uh rug dealer and I sold a rug to, you know, an American, right? But in order for that, in order for the money or for the dollars to get to Turkey and for the rug to get to America, it's got to go to a British bank while that trade is settling and there's time involved in that settlement, >> right?

[01:10:49]>> That settlement period is liquidated is liqufied and denominated in British pounds.

[01:10:56]Right?

[01:10:58]>> Then British pound will be cut out of the modern financial system, the next the next financial system. And so the liquidity token, >> it's two trades.

[01:11:07]>> It's two trades. And this is what when you look at what Ripple is, right? When you look at what XRP is, XRP is the liquidity token for the Ripple network of moving currency from here to there.

[01:11:19]And in order to move, you know, to do the same thing, just replace the British pound with XRP. Yeah. buy the the the the person buying the Turkish rug converts dollars into XRP. The XR XRP network converts the XRP into Turkish LRA and then the rug winds up in the United States. And that happens really fast >> and the value and and and here's the thing. This is the important part to understand about look and it doesn't matter if it's Ripple or Stellar Lumens or whatever it is. There's going to be a there's going to be a bunch of these ultimately. I don't care who wins and who doesn't win. That's not what I'm here for. like that's for the market to decide. But I'm just using Ripple as an example, which is the one I understand the best, right? Um the what what what what's important now is that the British pound has to operate in multiple functions.

[01:12:09]Not only is it a liquidity token for forex, it's also the way the British government pays its bills, funds its welfare state, funds its banking network, and everything else. So there's an incentive for the Bank of England to print and and and destroy British pounds that have nothing to do with that liquidity function.

[01:12:29]Okay, Ripple is just the liquidity function. So we know that there's X number of Ripple. Not all of them have been unlocked, but once the once Ripple's done unlocking all of the and it's fully diluted and it's they're all in the environment, if the network is providing a service to the to the market, Ripple goes up in value because more people are using the network.

[01:12:51]There's more demand per unit time.

[01:12:53]Therefore, right, and no one cares about Ripple as a as a as a thing, right? What what's what matters is the amount of trade that's settled in the Ripple network will because there's a fixed supply the price the value of that of that liquidity token will go up or down based on whether Ripple is you know um >> right >> liquifying more or less trade the British >> and the success of Ripple >> so the success of Ripple disintermediates correspondent banks and the British pound >> bingo >> right right and that's the beauty of of of crypto it yes it removes the one day holdover. It removes the intermediary uh transaction. So it just goes right from Turkish lera to American dollars through Ripple. No way.

[01:13:40]>> This is one of the things that I realized very early on in the in the whole crypto space that distri the the decentralized forex defy was the was the the prize. I realized this eight years ago when I was studying things like waves and the early stages of Ripple and all this other stuff. They were all trying to do the same damn thing. And there's a and there's a bunch of them out there. And there's a bunch of people have been trying to do decentralized forex for a long time. And again, that's the that's the that's the point of all of these things is to replace the British pound as that liquidity token. The reason that the British pound has that is a good liquidity token is because they've got a global banking network and all these old relationships and and good relationships with people, you know, around the world.

[01:14:28]But if you abuse those relationships or if that whole system is being liqufied by your control over the gold market, the silver market, the oil market, the this market, the market, all of those things that the the real money that flows through that network, which is ready, the Brent oil futures contract and you take that away from them and you take away the insurance risk and the reinsurance and the this and the that and all the other financial products that are locked on to de-risisking the actual moving barrels of oil from the Persian Gulf to wherever that needs it to teapot refiners over in China or India or anywhere else. I got news for you. That's a powerful thing. You take that away from them and the British pound collapses.

[01:15:16]The British pound has no business trading at a$135 or$134 to the dollar today based on Britain's industrial capacity and the and the ability of the British economy to generate demand for its currency. It's an artifact of an old system where they financialized their control over global trade flow being the interstitial currency and the interstitial bond market.

[01:15:45]>> That's what that is what the that is what Trump is targeting. That is what Nuke Gingrich finally expressed this morning in his tweet that I I sent that that that I sent far and wide this morning like or as far as and wide as my as my reach can go.

[01:16:01]>> Okay. And you just explained, Tom, or made clearer for me how Donald Trump is targeting the city of London at source.

[01:16:11]>> Yes.

[01:16:11]>> Through those. Excellent. Excellent.

[01:16:14]Vince, Tom, guys, we must do this again.

[01:16:16]I really really appreciate