Latest / The Paul Barron Crypto Show / BRICS Token vs Gold & Crypto️‍🔥Andy Schectman INTERVIEW

Transcript

BRICS Token vs Gold & Crypto️‍🔥Andy Schectman INTERVIEW · The Paul Barron Crypto Show

• 0:05
  Speaker 1: We covered a little bit of what was happening with
• 0:07
  Speaker 1: bricks yesterday. We want to dive a little bit deeper
• 0:10
  Speaker 1: with a person that I think has a little bit
• 0:12
  Speaker 1: more information on this whole area of where bricks is
• 0:15
  Speaker 1: going and how the impact could be on nully Crypto,
• 0:19
  Speaker 1: but also the rest of the market. So we'll break
• 0:20
  Speaker 1: it down for you. My name is Paul Baron. Welcome
• 0:22
  Speaker 1: back in the tech path. I want to thank our
• 0:23
  Speaker 1: sponsor today and that is I Trust Capital. This is
• 0:25
  Speaker 1: a place where you can hold crypto, special precious metals,
• 0:29
  Speaker 1: gold and silver, all that for your own IRA and
• 0:32
  Speaker 1: it's very easy to get started. Just use the link
• 0:34
  Speaker 1: down below that will get you started. You get a
• 0:36
  Speaker 1: one hundred dollars funding reward if you decide to go
• 0:38
  Speaker 1: in that direction. Joining me today is Andy Sheckman, who
• 0:41
  Speaker 1: is the president and owner of Miles Franklin.
• 0:45
  Speaker 2: Great to have you on the show. Andy, how are you.
• 0:47
  Speaker 3: It's great to be here, Paul, and I appreciate it.
• 0:49
  Speaker 3: I'm doing well, Thank you excellent. Well.
• 0:52
  Speaker 1: I want to learn a little bit more of what
• 0:55
  Speaker 1: I've had a chance to watch some of your interviews
• 0:57
  Speaker 1: on bricks, your analysis, what bricks is in the middle
• 1:01
  Speaker 1: of right now, and for some of our audience, they
• 1:04
  Speaker 1: might be new to what's happening within it. Give us
• 1:07
  Speaker 1: a rundown of what's happening right now at the Bricks Summit,
• 1:10
  Speaker 1: because there seems to be some pretty key things going on.
• 1:13
  Speaker 3: What's going on at the Brick Summit is kind of
• 1:15
  Speaker 3: being held close to the vest, But I would say
• 1:17
  Speaker 3: there are a couple of things that are sticking out
• 1:19
  Speaker 3: to me. You know, everyone is talking about Project Mbridge,
• 1:25
  Speaker 3: and certainly that is being discussed. I'm sure we'll chat
• 1:27
  Speaker 3: about that, but there are a couple of things that
• 1:30
  Speaker 3: I think from a marketing standpoint, I guess you could
• 1:33
  Speaker 3: say it's as if they're trying to market certain information
• 1:36
  Speaker 3: to the West, and to me what they're trying to
• 1:38
  Speaker 3: market to the West, they're kind of outwardly showing that
• 1:41
  Speaker 3: they have their you know what together, that they're joined
• 1:44
  Speaker 3: together in unity. And I say that we've seen, for example,
• 1:48
  Speaker 3: the discussion of Xijingping and Mody today meeting on the
• 1:52
  Speaker 3: sideline for their first bilateral meeting since twenty twenty two.
• 1:56
  Speaker 3: That's one thing I think they're trying to show the
• 1:58
  Speaker 3: world that look, we are our differences aside as a
• 2:01
  Speaker 3: group and that gives stability. Certainly, that's something encouraging from
• 2:06
  Speaker 3: a standpoint of growing unity and a growing group of countries. Secondly,
• 2:11
  Speaker 3: we talk about bricks pay. Bricks pay is something that
• 2:15
  Speaker 3: is more for the individual, whereas mbridge is more for
• 2:21
  Speaker 3: the countries trading in commodities as an example, and settling
• 2:25
  Speaker 3: in what amounts to a gold back settlement currency. But
• 2:30
  Speaker 3: the bricks pay would be more like, let's call it
• 2:33
  Speaker 3: a monetary passport to use Vince Lancy's terminology, I agree
• 2:37
  Speaker 3: with that. It's these people from want to go into
• 2:41
  Speaker 3: one of the other bricks countries and they're able to
• 2:43
  Speaker 3: use their bricks pay app, whether it be a credit
• 2:46
  Speaker 3: card or on their phone, that allows them to seamlessly
• 2:49
  Speaker 3: transact in these countries without having to convert first and foremost,
• 2:53
  Speaker 3: and all of the difficulty in doing so in countries
• 2:59
  Speaker 3: where it might be difficult to exchange your currency very efficiently.
• 3:02
  Speaker 3: So they're getting all their ducks in a row, all
• 3:05
  Speaker 3: the way down to settling retail transactions with click. And
• 3:11
  Speaker 3: I think this is one of the deals where we
• 3:13
  Speaker 3: have to understand that I don't expect anything to come
• 3:15
  Speaker 3: out of this meeting groundbreaking, Yet it is a trend
• 3:19
  Speaker 3: that is certainly gaining an accelerated, coordinated group of countries
• 3:27
  Speaker 3: that are moving in the direction I guess you could
• 3:30
  Speaker 3: say a critical mass, a direction that will be very
• 3:33
  Speaker 3: difficult to challenge, as is Paul. They already represent a
• 3:37
  Speaker 3: much larger swath of human population, of global GDP, of
• 3:42
  Speaker 3: military might, three the four largest nuclear arsenals, of trade, routes,
• 3:47
  Speaker 3: of commodity production, of commodity refining. It's a situation that
• 3:54
  Speaker 3: is certainly should not be underestimated, and it will be
• 3:56
  Speaker 3: interesting when they come out with some sort of a recap,
• 3:59
  Speaker 3: probably on Friday, of what indeed did transpire. We do
• 4:03
  Speaker 3: know that there's at least thirty countries there that have
• 4:06
  Speaker 3: already expressed interests or delegates from thirteen countries that have
• 4:09
  Speaker 3: express interests in joining or have fully applied, on top
• 4:13
  Speaker 3: of the other countries that are already full members. So
• 4:16
  Speaker 3: it's an interesting growing trend that I don't think we've
• 4:20
  Speaker 3: even begun to see what it really amounts to.
• 4:23
  Speaker 1: We covered quite a bit of some of the alignment
• 4:26
  Speaker 1: there on screen. You guys are seeing you know, you
• 4:29
  Speaker 1: mentioned bricks pay their pay B to B program, The unit,
• 4:33
  Speaker 1: which I want to get into in a second. That's
• 4:35
  Speaker 1: still in discussion. They also have a Brick's Loyalty model,
• 4:39
  Speaker 1: which is going to be around traveler reward system, so
• 4:41
  Speaker 1: again more of the monetary system. And then bricks Clear,
• 4:44
  Speaker 1: which is a settlement system for cross border security settlement.
• 4:47
  Speaker 1: So you look at the unit potential token right now,
• 4:51
  Speaker 1: they raised one thousand bitcoin for rollout to essentially kind
• 4:55
  Speaker 1: of see this. First of all, why do you think
• 4:57
  Speaker 1: they used bitcoin here and not necessarily tokenized gold or
• 5:01
  Speaker 1: something of that nature.
• 5:03
  Speaker 3: You know, that's a good question to be honest with you.
• 5:05
  Speaker 3: In principle, they've agreed to the unit being backed forty
• 5:09
  Speaker 3: percent by gold, but there are going to be when
• 5:12
  Speaker 3: it's all said and done, other items added to this basket.
• 5:16
  Speaker 3: I'm sure bitcoin is on their on their right board
• 5:21
  Speaker 3: as one of those potential items as far as I
• 5:24
  Speaker 3: know at this point, though it is not a part
• 5:26
  Speaker 3: of the unit in terms of its settlement structure.
• 5:28
  Speaker 1: When you look at the unit token, is this is
• 5:31
  Speaker 1: going to be something that is available to the public
• 5:34
  Speaker 1: through some sort of decks or exchange or a location
• 5:37
  Speaker 1: in which we'd be able to trade within the unit
• 5:40
  Speaker 1: token itself.
• 5:41
  Speaker 3: Much like you do with currencies, perhaps over time, but
• 5:44
  Speaker 3: not at first, and that's where bricks pay comes into play.
• 5:48
  Speaker 3: To my understanding, the unit token will be for central
• 5:51
  Speaker 3: banks commercial banks settling transactions primarily in energy, but the
• 5:58
  Speaker 3: whole premise of mbridge first and foremost is for countries
• 6:02
  Speaker 3: to trade their central bank digital currencies local trade with
• 6:05
  Speaker 3: one another over a system that is not affected by swift,
• 6:09
  Speaker 3: And what this will do is incentivize these countries to
• 6:13
  Speaker 3: keep their monetary homes and houses in order. The unit
• 6:17
  Speaker 3: token itself says not more than thirty percent of any
• 6:20
  Speaker 3: one currency will comprise the basket, so they've taken some
• 6:24
  Speaker 3: of these things into consideration in terms of dominance, and
• 6:27
  Speaker 3: the actual unit token itself is a fractal of the
• 6:31
  Speaker 3: entire unit holding, so as things have to be adjusted,
• 6:35
  Speaker 3: primarily in the currencies. See everything is as a percentage
• 6:40
  Speaker 3: as it relates to gold, and it's tied to gold,
• 6:43
  Speaker 3: so as things have to be readjusted, it doesn't have
• 6:47
  Speaker 3: to They don't have to be readjusted on the actual
• 6:50
  Speaker 3: tokens themselves, because the tokens represent a fractal of the
• 6:54
  Speaker 3: entire unit will just automatically adjust. But as far as
• 6:57
  Speaker 3: I've been told, no at first, though it may be after.
• 7:01
  Speaker 3: This will be a system that is designed primarily for
• 7:05
  Speaker 3: the state and not for the individual.
• 7:08
  Speaker 1: So what do you think the market cap is going
• 7:10
  Speaker 1: to be comprised of between those thirty countries. Would it
• 7:12
  Speaker 1: be similar to a percentage of the overall GDP?
• 7:16
  Speaker 3: You know, I don't know. I mean they haven't. They
• 7:17
  Speaker 3: have been very tight lipped about it. I mean, the
• 7:19
  Speaker 3: unit has been something that has been discussed mostly in Kory,
• 7:23
  Speaker 3: and they have been tight lipped as to how it
• 7:25
  Speaker 3: actually rolls out. But you know, look, I mean, I
• 7:28
  Speaker 3: think it has to do with how much gold do
• 7:31
  Speaker 3: you have? First and foremuaos and if you look at
• 7:33
  Speaker 3: all of the countries that have been buying gold and
• 7:35
  Speaker 3: repatriating it. The key to it, as you said, is
• 7:37
  Speaker 3: that it is held within the borders of the countries
• 7:40
  Speaker 3: that are producing the unit token. And this is good
• 7:43
  Speaker 3: obviously for the counterparty risk element when we look at
• 7:47
  Speaker 3: the weaponizing of the treasury. But I think when you
• 7:51
  Speaker 3: talk about market cap, it's something that will continue to
• 7:53
  Speaker 3: expand the tethering, if you will, to a percentage of
• 7:57
  Speaker 3: gold that will enable it to not be inflated away
• 8:01
  Speaker 3: the way that the Western currencies have. When you look
• 8:04
  Speaker 3: at the United States, we're creating one hundred thousand dollars
• 8:06
  Speaker 3: of debt per second right now, twenty four to seven
• 8:09
  Speaker 3: a trillion, never ninety days. That's something that won't happen
• 8:12
  Speaker 3: with the unit token. And as far as the market cap,
• 8:15
  Speaker 3: I guess I would say, I don't know, but I
• 8:16
  Speaker 3: would expect it to continue to Expand.
• 8:19
  Speaker 1: You look at the GDP size of that, what percentage
• 8:21
  Speaker 1: do you think the unit token would be comprised of?
• 8:25
  Speaker 1: For let's just look at the total GDP of those
• 8:29
  Speaker 1: thirty nations. Do you think it would be ten percent,
• 8:31
  Speaker 1: twenty five percent as they start to divest, or however
• 8:35
  Speaker 1: much they can get in terms of gold assets they
• 8:37
  Speaker 1: can bring in, So it'd be different for each country.
• 8:40
  Speaker 3: So I think it's an expanding deal where it starts
• 8:43
  Speaker 3: out a smaller percentage of GDP, but by the end,
• 8:46
  Speaker 3: I think it would comprise a much larger percentage. If
• 8:49
  Speaker 3: indeed this takes hold and is seen as something very
• 8:54
  Speaker 3: legitimate that is actually actually challenging settlement for energy across
• 8:59
  Speaker 3: the globe with all of these bricks countries.
• 9:02
  Speaker 1: When you look at Western rails because it's not like
• 9:04
  Speaker 1: the US dollar is going to just to eliminate overnight,
• 9:07
  Speaker 1: but it could move quickly to where we see detailrization happen.
• 9:10
  Speaker 1: But Western rails are still going to be a huge
• 9:13
  Speaker 1: part of the global economy. How would bricks be able
• 9:17
  Speaker 1: to onboard into the Western rails if they're going through
• 9:21
  Speaker 1: something like an m bridge, which essentially is you know,
• 9:25
  Speaker 1: kind of destabilizing the idea of swift. So I understand
• 9:28
  Speaker 1: why they're doing that, but they're still going to have
• 9:31
  Speaker 1: to do you trade with the US and Canada and Europe, Italy,
• 9:35
  Speaker 1: you know, the UK, et cetera.
• 9:37
  Speaker 2: What would be the route they would take.
• 9:39
  Speaker 3: You also have the Bank of International Settlements standing behind it,
• 9:44
  Speaker 3: and this is something that lends I think, credibility to
• 9:48
  Speaker 3: the question, to the way that you phrased it. This
• 9:51
  Speaker 3: is a Western entity as well, and you know you're
• 9:55
  Speaker 3: you're seeing i think the realization and even you'll if
• 9:59
  Speaker 3: you dig deep, you'll see names like JP Morgan and
• 10:02
  Speaker 3: Goldman Sax who want to take part in this as well,
• 10:04
  Speaker 3: whether if it's through something like Project Agora, which is
• 10:07
  Speaker 3: the Western answer to this. They make a very very
• 10:11
  Speaker 3: strong point of saying that the while the US dollar
• 10:17
  Speaker 3: and the swift system at this point is not compatible
• 10:19
  Speaker 3: with Mbridge. They talk about the fact that it has
• 10:22
  Speaker 3: tremendous adaptability, that systems should be able to integrate with
• 10:28
  Speaker 3: the Mbridge. But you'll have banks and companies that I
• 10:32
  Speaker 3: think will adapt that will allow for access to it,
• 10:35
  Speaker 3: at least at the beginning. And when you see the
• 10:39
  Speaker 3: Bank of International Settlements as part of this, it becomes
• 10:42
  Speaker 3: fairly obvious that the West has a kind of their
• 10:45
  Speaker 3: nose under the tent, if you will, and should have
• 10:48
  Speaker 3: some form of connectivity with Mbridge as it begins to
• 10:54
  Speaker 3: grow and take hold.
• 10:56
  Speaker 1: I've got a clip here that kind of goes into
• 10:58
  Speaker 1: that test that's being by the Federal Reserve Bank of
• 11:01
  Speaker 1: New York. Let me go ahead and play this clip
• 11:04
  Speaker 1: for you and we'll get your opinion.
• 11:06
  Speaker 2: Take a look.
• 11:06
  Speaker 1: What can you walk us through your work in those
• 11:09
  Speaker 1: two projects to date and what the US has really
• 11:12
  Speaker 1: been looking at from the Federal Reserve.
• 11:14
  Speaker 2: Bank point of view.
• 11:15
  Speaker 4: Primarily, we have a strategic partnership with the Bank for
• 11:18
  Speaker 4: International Settlements Innovation Hub and the practical work that we're
• 11:21
  Speaker 4: doing a new reference. Two of our current projects, Agora
• 11:24
  Speaker 4: and the Regulated Settlement Network. Those are two that are
• 11:27
  Speaker 4: currently underway, and there was a phase two project SEATER
• 11:31
  Speaker 4: that we conducted in collaboration with the Monetary Authority of Singapore,
• 11:35
  Speaker 4: which focused more on interoperability. We then worked on a
• 11:39
  Speaker 4: project called the Regulated Liability Network or r l N,
• 11:42
  Speaker 4: which added additional assets to different use cases that we
• 11:46
  Speaker 4: were focused on, and also added complexity around cross border
• 11:51
  Speaker 4: and payments oriented use cases that we believe our high
• 11:54
  Speaker 4: values cases to focus on. RSN has expanded the focus
• 11:58
  Speaker 4: on different sorts of digital assets that might benefit from tokenization.
• 12:04
  Speaker 4: It's also added a complexity relative to the interoperability problem
• 12:08
  Speaker 4: that exists that we're trying to understand how we might
• 12:11
  Speaker 4: solve for that. We're working with six other central banks
• 12:15
  Speaker 4: and forty one private sector organizations in that project. And
• 12:18
  Speaker 4: one thing that I would emphasize is that all of
• 12:20
  Speaker 4: our work is focused just on research and experimentation. So
• 12:24
  Speaker 4: we're not building production systems with the work that we're doing,
• 12:27
  Speaker 4: but we're conducting research that ideally might inform what production
• 12:31
  Speaker 4: systems if they come to market. It might contain some
• 12:35
  Speaker 4: of the key areas that I referenced earlier that we
• 12:37
  Speaker 4: believe are critical to understand a relative for the depression of
• 12:41
  Speaker 4: tokenization include interoperability. If we can't figure that out, this
• 12:45
  Speaker 4: isn't going to work. That's also based on a hypothesis
• 12:48
  Speaker 4: that we have that the future will really be heterogeneous.
• 12:53
  Speaker 4: There won't be one ledger to rule them all. There
• 12:55
  Speaker 4: won't be a single system that ultimately provides products and
• 12:58
  Speaker 4: services within a tokenized domain to the financial system. But
• 13:02
  Speaker 4: there'll be different ledgers. They'll be different insrastructures that are
• 13:05
  Speaker 4: available to different consumers, different industry actors, different banks that
• 13:12
  Speaker 4: are specific to the use cases that they're focused on.
• 13:15
  Speaker 1: Now, what they're referencing there was like what you were
• 13:18
  Speaker 1: talking abouts, Project Agora. This is the list of private
• 13:21
  Speaker 1: sector institutions that are involved in this.
• 13:25
  Speaker 2: So quite a few.
• 13:26
  Speaker 1: I mean, this is a lot of pretty high powered
• 13:29
  Speaker 1: infrastructure out there. JPM Morgan in there, even Swift and MasterCard.
• 13:33
  Speaker 2: There's quite a bit here.
• 13:34
  Speaker 1: They are talking about a interoperable We, of course, on
• 13:38
  Speaker 1: our SHOWLD love to hear that word because it means
• 13:40
  Speaker 1: multi chain and the likelihood of us seeing maybe a
• 13:45
  Speaker 1: variety of blockchains or other entities and digital assets being
• 13:49
  Speaker 1: used to kind of help support this, So that being
• 13:52
  Speaker 1: a big part of this. You look at public blockchains
• 13:56
  Speaker 1: versus the private blockchain of what mbridges doing, because that's
• 14:00
  Speaker 1: obviously bricks versus what would happen over.
• 14:03
  Speaker 2: Here maybe in the Western world.
• 14:04
  Speaker 1: Do you think there's going to be any ramifications between
• 14:07
  Speaker 1: those two.
• 14:08
  Speaker 3: I have a hard time believing that the Federal Reserve
• 14:12
  Speaker 3: or the BIS would would integrate systems that are decentralized
• 14:19
  Speaker 3: into what amounts to a centralized ecosystem. You know, this
• 14:24
  Speaker 3: is one of the reasons why a lot of people
• 14:25
  Speaker 3: talk about XRP because XRP truly isn't decentralized, and they
• 14:30
  Speaker 3: have the ability to, you know, reach out and grab
• 14:32
  Speaker 3: someone if they have to, so to speak in a
• 14:35
  Speaker 3: crude sense of the word. But I do think that
• 14:38
  Speaker 3: you will see a lot of these these systems attempt
• 14:41
  Speaker 3: to be integrated and all the and all the names
• 14:44
  Speaker 3: on that list are are you know that would would
• 14:46
  Speaker 3: pay reference to that. When you see all of these
• 14:49
  Speaker 3: countries involved in in mbridge and all of these all
• 14:52
  Speaker 3: these institutions involved in mbridge, Western based institutions, there's no
• 14:56
  Speaker 3: question there will be interoperability. The question is what systems
• 15:01
  Speaker 3: will they integrate? And I'm surprised that that Bitcoin is
• 15:06
  Speaker 3: on the list. I don't think it will be something
• 15:09
  Speaker 3: that will be tied to any settlement, but I do
• 15:12
  Speaker 3: think they understand the ability of transacting currencies and being
• 15:17
  Speaker 3: able to purchase things like bitcoin. I would see, quite frankly,
• 15:21
  Speaker 3: a much higher possibility of something like XRP being involved
• 15:25
  Speaker 3: in transacting, in being used to integrate with the m
• 15:32
  Speaker 3: bridge or Project Grow or any of these other settlement options,
• 15:37
  Speaker 3: a form of instant settlement, a much more efficient way
• 15:40
  Speaker 3: of doing so. But all of it under the purview,
• 15:42
  Speaker 3: if you will, of the BIS and of the Western system.
• 15:45
  Speaker 3: So it's an interesting thought experiment. Don't know how it
• 15:49
  Speaker 3: all plays out, but so many people focus on the
• 15:52
  Speaker 3: bricks pushing away from Western gemony. I think it's naive
• 15:57
  Speaker 3: to not notice, you know, the lant in the corner
• 16:00
  Speaker 3: of the room, and that is the BIS and all
• 16:02
  Speaker 3: of the organizations who are signing up to participate in
• 16:06
  Speaker 3: it as well.
• 16:07
  Speaker 1: It's interesting that you mentioned Ripple because Ripple is doing
• 16:10
  Speaker 1: some things within the SBI, which is using XRPL for
• 16:15
  Speaker 1: supply chain solutions. This is exactly what you're talking about.
• 16:17
  Speaker 1: Is this could be maybe one of the solutions that
• 16:20
  Speaker 1: Project Agra and others might get into in terms of
• 16:23
  Speaker 1: use case for not only value but just the transactional
• 16:27
  Speaker 1: layers of blockchain. But gold still has a major problem
• 16:31
  Speaker 1: around audits. So you look at how they're using gold
• 16:35
  Speaker 1: within the base of the unit token, I mean auditing
• 16:39
  Speaker 1: that versus just going on a blockchain and auditing a holding.
• 16:43
  Speaker 1: Quite a bit different because that's a physical audit inside
• 16:46
  Speaker 1: places like Iran and Saudi Arabia and Russia, etc. Do
• 16:51
  Speaker 1: you think that has any potential problems?
• 16:55
  Speaker 3: Now, that's the pushback from a lot of people who
• 16:58
  Speaker 3: who high respect, who are more in the bitcoin space,
• 17:03
  Speaker 3: and I respect it. I understand it. The unit token
• 17:06
  Speaker 3: says that these escrow accounts will be independently and continuously
• 17:10
  Speaker 3: audited with stiff penalties for deviation from the protocol and
• 17:16
  Speaker 3: the ecosystem, with all of that information in real time
• 17:19
  Speaker 3: on the blockchain for everyone to see. But yes, I
• 17:22
  Speaker 3: think they're going to really have to put a lot
• 17:24
  Speaker 3: of emphasis on the auditing process and to inspire that confidence.
• 17:29
  Speaker 3: The fact that these tokens are deliverable upon request is
• 17:32
  Speaker 3: also something that is you know, that's something that should
• 17:37
  Speaker 3: mitigate the desire if you will to cheat on the
• 17:44
  Speaker 3: auditing process. But yeah, you know, I think that is
• 17:47
  Speaker 3: from one hundred mile high perspective. It is one of
• 17:51
  Speaker 3: the issues that must be addressed, but I think anything
• 17:55
  Speaker 3: is better at this point. Look, if you realize that
• 17:59
  Speaker 3: every central bank and the planet owns gold, you can't
• 18:01
  Speaker 3: say that about bitcoin. And I just think that these
• 18:08
  Speaker 3: countries realize that gold is wealth, and to tie the
• 18:12
  Speaker 3: system to gold, have it audited continuously independently is a
• 18:17
  Speaker 3: far better solution than what we currently have. I don't
• 18:20
  Speaker 3: know why they've chosen to do it this way, but
• 18:23
  Speaker 3: I think it's much better that each country has the
• 18:26
  Speaker 3: ability to hold it themselves rather than sending it to
• 18:28
  Speaker 3: one central authority like we've seen literally for almost one
• 18:32
  Speaker 3: hundred years, with everyone sending their goal to the LBMA
• 18:35
  Speaker 3: or to the Bank of England to have access to
• 18:39
  Speaker 3: the LBMA, and to the New York Fed to have
• 18:41
  Speaker 3: access on COMEX. And we've seen over forty countries we
• 18:43
  Speaker 3: patriate their gold, one of which was Venezuela, and that
• 18:48
  Speaker 3: Bank of England said no, we're not going to give
• 18:49
  Speaker 3: it back to you. So yes, I get your point,
• 18:52
  Speaker 3: but let's hope that they've taken that into consideration for
• 18:55
  Speaker 3: their own good to make sure that that auditing inspires confident.
• 19:00
  Speaker 2: Well, I think that will be the challenge.
• 19:02
  Speaker 1: And you look at some of the countries global I mean,
• 19:04
  Speaker 1: this is a good example right here. This is US
• 19:06
  Speaker 1: government current holdings on bitcoin and digital assets in general.
• 19:11
  Speaker 1: Likelihood is you've got Saudi Arabia owning a lot of bitcoin,
• 19:15
  Speaker 1: You've got Katar talking about repositioning a lot of assets
• 19:18
  Speaker 1: into bitcoin. I mean, I think that we're dealing with
• 19:21
  Speaker 1: the potential of a replacement of the fiat system, and
• 19:24
  Speaker 1: it's likely that gold and bitcoin and or digital assets
• 19:27
  Speaker 1: are going to start to rise in terms of the
• 19:30
  Speaker 1: opportunity here. So it's not that we're pitting one against
• 19:33
  Speaker 1: the other. What we're trying to figure out is where
• 19:35
  Speaker 1: is the trend going for these bricks of courses leading
• 19:39
  Speaker 1: part of that, but at the same time, we're starting
• 19:41
  Speaker 1: to see movement in the Western countries around digital assets.
• 19:45
  Speaker 1: So I think a lot of that is playing into that.
• 19:47
  Speaker 1: I was looking at the XRPL layout here. This is
• 19:51
  Speaker 1: the bricks pay Hostsale cbdc Ripple of course is involved
• 19:56
  Speaker 1: in a lot of these areas such as India, Brazil.
• 19:59
  Speaker 1: Of course, we know them China already and then you
• 20:03
  Speaker 1: all all the way down into what's happening in South Africa.
• 20:06
  Speaker 1: So they're in position right now to be a part
• 20:09
  Speaker 1: of this. It'll be interesting to see how they plug
• 20:13
  Speaker 1: in effectively into how And of course a lot of
• 20:16
  Speaker 1: this is still going to be boiling down to what
• 20:18
  Speaker 1: Bricks ends up saying. I know Putin is going to
• 20:20
  Speaker 1: be what is it Thursday? Yea conference ins on Thursday,
• 20:24
  Speaker 1: and apparently Putin is going to be the one that
• 20:27
  Speaker 1: kind of talks.
• 20:27
  Speaker 2: About what they decided.
• 20:29
  Speaker 1: So we'll here, hopefully we'll hear some stuff that will
• 20:33
  Speaker 1: give us some insights to this. For sure, if you
• 20:36
  Speaker 1: were looking at the best crypto to play, and I
• 20:39
  Speaker 1: know that obviously you're a gold guide, but you look
• 20:42
  Speaker 1: at diversification. I think a lot of our people that
• 20:46
  Speaker 1: follow our channel, they might hold gold, they hold all
• 20:48
  Speaker 1: sorts of assets, crypto.
• 20:50
  Speaker 2: Being one of them.
• 20:51
  Speaker 1: But you look at some of the crypto opportunities out there,
• 20:54
  Speaker 1: whether it's Bitcoin, ethereum, something like a stellar or an
• 20:57
  Speaker 1: XRP chain link, some of the that are starting to
• 21:01
  Speaker 1: integrate with the banking system. Is there any that you
• 21:04
  Speaker 1: would say, oh, this might be interesting to watch.
• 21:07
  Speaker 3: I mean, I own a little bit of bitcoin only
• 21:10
  Speaker 3: because I didn't want to say why didn't I own it?
• 21:14
  Speaker 3: And I've been talking about this stuff for so very long.
• 21:19
  Speaker 3: But I am a hard ass, that guy to your point,
• 21:21
  Speaker 3: and it's hard for me to let my mind go
• 21:25
  Speaker 3: to a place where I can't hold it. But I
• 21:28
  Speaker 3: do do really really recognize the potential in XRP, and
• 21:35
  Speaker 3: in looking at the way that it's constructed, in looking
• 21:37
  Speaker 3: at the contracts that have already been signed, and looking
• 21:40
  Speaker 3: at that flow chart that you just showed, it's unquestionable
• 21:43
  Speaker 3: that once all this nonsense with the SEC is behind them,
• 21:48
  Speaker 3: in my opinion, it offers amazing potential because it's going
• 21:52
  Speaker 3: to be integrated into the system. It would be the
• 21:55
  Speaker 3: one that I would probably say offers the best potential,
• 21:58
  Speaker 3: at least from an expand of the system that already
• 22:02
  Speaker 3: is showing you that it is in many in I guess,
• 22:05
  Speaker 3: in just about every sense of the word, is already
• 22:08
  Speaker 3: integrated into their plans.
• 22:10
  Speaker 1: I was looking at the gold chart here, and one
• 22:14
  Speaker 1: thing is if you look at the range between nineteen
• 22:17
  Speaker 1: seventy to around nineteen eighty, gold took a massive run
• 22:24
  Speaker 1: almost almost two thousand percent. Then we go into its
• 22:28
  Speaker 1: next run which was around July of two thousand and one,
• 22:33
  Speaker 1: to its high back in August of twenty eleven about
• 22:37
  Speaker 1: six hundred and thirty eight percent. The next run was
• 22:39
  Speaker 1: about ninety three percent, and we're currently in a run
• 22:42
  Speaker 1: of about sixty nine percent. Where does gold stop or
• 22:46
  Speaker 1: I mean, at its current high right now trading today
• 22:49
  Speaker 1: as we've filmed this twenty seven one hundred and seventeen
• 22:52
  Speaker 1: dollars and it's on a sixty three percent two year
• 22:55
  Speaker 1: run right now.
• 22:56
  Speaker 3: Now.
• 22:56
  Speaker 1: Granted that's a smaller percentage each time of these bullry
• 23:00
  Speaker 1: so to speak of gold, But is there a top
• 23:03
  Speaker 1: or an area that you would say a price target
• 23:05
  Speaker 1: for gold in the next say, twelve months.
• 23:08
  Speaker 3: Within the next twelve months, it becomes easier to follow
• 23:12
  Speaker 3: this the commercial bank verbiage and projections of thirty one
• 23:17
  Speaker 3: hundred by this time next year, which I think is
• 23:21
  Speaker 3: is conservative. The money supply has increased fourteenfold since since
• 23:26
  Speaker 3: nineteen eighty and when you look at gold and silver
• 23:31
  Speaker 3: and the way that it's traded currently in London and
• 23:34
  Speaker 3: on the Comex, I think these countries are using the
• 23:37
  Speaker 3: suppression of the paper markets to their advantage to accumulate
• 23:43
  Speaker 3: it in copious amounts. The reason they're not complaining about
• 23:46
  Speaker 3: the massive leverage on the LBMA, where twice global MIND
• 23:51
  Speaker 3: supply is traded every single day in silver, it's three
• 23:55
  Speaker 3: and a half times annual global mind supply every day.
• 23:57
  Speaker 3: Most of these contracts are naked short. These this suppression
• 24:02
  Speaker 3: has been done for a very long time to inspire
• 24:05
  Speaker 3: confidence in the Western system, the bond market and the currency,
• 24:09
  Speaker 3: and they've held down the monetary metals. And it's unquestionable
• 24:12
  Speaker 3: when you dig deep into the naked short positions on
• 24:15
  Speaker 3: both the LBMA and COMEX that this is the case.
• 24:18
  Speaker 3: And the rest of these countries have been using that
• 24:21
  Speaker 3: suppression against us by massively accumulating it and repatriating it.
• 24:26
  Speaker 3: And you know, I guess I keep coming back to
• 24:31
  Speaker 3: the fact that I truly do believe that they all
• 24:34
  Speaker 3: have intentions of revaluing gold ultimately too. If you're going
• 24:39
  Speaker 3: to tie gold to a system, whether it only be
• 24:42
  Speaker 3: forty percent or more, it wants to be at a
• 24:44
  Speaker 3: much higher level. And you know, ironically, in every single
• 24:49
  Speaker 3: central bank balance sheet across the globe, gold is held
• 24:52
  Speaker 3: in what is called the Gold Revaluation Account. Roosevelt did
• 24:55
  Speaker 3: it in thirty three when he confiscated gold and then
• 24:58
  Speaker 3: devalued the dollar by forty percent, pushing the gold price
• 25:01
  Speaker 3: from twenty to thirty five. And you have, like I said,
• 25:05
  Speaker 3: the head of the Dutch National Bank, who keeps saying, look,
• 25:07
  Speaker 3: we have twenty billion in euro in gold at thirty
• 25:10
  Speaker 3: five dollars announced we should just revalue the price of
• 25:13
  Speaker 3: gold and put it up to a level commensurate to
• 25:16
  Speaker 3: offset our liabilities. Chris Delina Georgievas says, if CBDC is
• 25:22
  Speaker 3: not pegged to something, it's fiat. When you realize that
• 25:25
  Speaker 3: if you take the world's GDP and the country's that
• 25:28
  Speaker 3: comprise ninety nine percent of it, they all have CBDCs
• 25:31
  Speaker 3: in operation or development. When you realize the BIS reclassify
• 25:35
  Speaker 3: gold is the world's only other Tier one reserve asset,
• 25:38
  Speaker 3: all the countries are buying it, You're hearing pegging behind it.
• 25:43
  Speaker 3: And I look to Cynthia Lumis at the Bitcoin conference
• 25:47
  Speaker 3: in Tennessee, where she said, look, you know, after Trump
• 25:50
  Speaker 3: got up and said we should have a strategic account
• 25:52
  Speaker 3: with bitcoin, she said, yes, and I'm going to I'm
• 25:54
  Speaker 3: going to draft a build that requests that the gold
• 25:58
  Speaker 3: held by the Federal Reserve of the Treasury be revalued. Now,
• 26:04
  Speaker 3: every four thousand dollars increase in the price of gold
• 26:06
  Speaker 3: gives a trillion dollars free and clear to the Treasury
• 26:09
  Speaker 3: General account. And Janet wouldn't even need to get a
• 26:15
  Speaker 3: vote of Congress. Just instruct your own Powell to do this.
• 26:17
  Speaker 4: Now.
• 26:18
  Speaker 3: I know it sounds crazy, but to me it really isn't.
• 26:21
  Speaker 3: It's much easier path than outright default or outright hyper
• 26:25
  Speaker 3: inflation to revalue the gold. And look as nuts as
• 26:30
  Speaker 3: this sounds, but it really isn't. It shouldn't be from
• 26:32
  Speaker 3: your camp because you know, when you talk about bitcoin,
• 26:36
  Speaker 3: people have no problems seeing it at one hundred and
• 26:38
  Speaker 3: fifty thousand, or three hundred thousand or a million. Why
• 26:41
  Speaker 3: could gold not be at one hundred and thirty five
• 26:43
  Speaker 3: thousand dollars If it were as insane as that sounds,
• 26:47
  Speaker 3: our debt our balance sheet would go from putrid to
• 26:50
  Speaker 3: pristine just like that, and our assets would offset our liabilities.
• 26:54
  Speaker 3: This is something that I think is possible now on
• 26:57
  Speaker 3: a microcosm scale. You see the Shanghai met Exchange has
• 27:00
  Speaker 3: been pricing silver between ten and fifteen percent higher than
• 27:04
  Speaker 3: it is on the West. That is what the price is.
• 27:07
  Speaker 3: If you're able to buy it in the West and
• 27:09
  Speaker 3: deliver it to China. If the Treasury said, look, we'll
• 27:12
  Speaker 3: pay one hundred and thirty five thousand dollars to any
• 27:14
  Speaker 3: nation that wants to deliver their goal to the Treasury,
• 27:18
  Speaker 3: it indeed is that price. Now are they going to
• 27:20
  Speaker 3: do it to that level? Probably not. But when you
• 27:23
  Speaker 3: see gold going to ten thousand, fifteen, twenty thousand as
• 27:27
  Speaker 3: a revaluation on behalf of the western central banks and
• 27:32
  Speaker 3: the BIS that were classified it as the only other
• 27:34
  Speaker 3: Tier one asset, I will tell you that I do
• 27:36
  Speaker 3: believe if it is going to be the cornerstone of
• 27:40
  Speaker 3: this new monetary system, and it looks like it will
• 27:42
  Speaker 3: be at least as far as the unit, as far
• 27:46
  Speaker 3: as the BIS, and not so sure yet here in
• 27:49
  Speaker 3: the West. But when you see a senator from Wyoming
• 27:52
  Speaker 3: say that to me, it's on the table, and I
• 27:55
  Speaker 3: think it will go higher than anyone thinks possible. But
• 27:57
  Speaker 3: you don't buy it for that reason, because it is
• 28:00
  Speaker 3: wealth and the central banks know the playbook. They're the
• 28:03
  Speaker 3: most well informed traders in the world. The fact that
• 28:05
  Speaker 3: they're buying the levels they are and repay three It
• 28:07
  Speaker 3: ain't the way that they are tells you that something
• 28:11
  Speaker 3: is in store for a new system tied to gold,
• 28:13
  Speaker 3: and I do believe it will be a marriage of
• 28:15
  Speaker 3: blockchain technology and gold, but it will have to be
• 28:18
  Speaker 3: at higher level. So in a year over three thousand,
• 28:22
  Speaker 3: for sure. I think you'll see it over three thousand,
• 28:24
  Speaker 3: maybe by the end of this year, but ultimately higher
• 28:27
  Speaker 3: than people think possible in the face of a system
• 28:30
  Speaker 3: that is just very long in the tooth that needs
• 28:33
  Speaker 3: to be changed, and the only way to do it
• 28:35
  Speaker 3: is to inspire confidence. And what better way to do
• 28:38
  Speaker 3: it than with gold tied to blockchain technology. And if
• 28:42
  Speaker 3: you do it at forty percent, at at really elevated level,
• 28:44
  Speaker 3: you still give the politicians some monetary latitude, but not
• 28:50
  Speaker 3: enough to just create as we are right now. Yeah
• 28:53
  Speaker 3: run away without per second? Yeah right exactly. You know.
• 28:57
  Speaker 1: Obviously digital assets would most likely be the under the
• 29:01
  Speaker 1: overarching asset behind under arcing, much like USDC or tether
• 29:05
  Speaker 1: is now trying to tie it to a Fiat dollar
• 29:08
  Speaker 1: and or securities that could all shift again with stable
• 29:12
  Speaker 1: coins of.
• 29:12
  Speaker 2: How that is valued.
• 29:14
  Speaker 1: So listen, Andy, it's going to get very Yeah, it's
• 29:16
  Speaker 1: going to get very interesting, I think in the next
• 29:18
  Speaker 1: twelve months as bricks continues to force the hand I
• 29:21
  Speaker 1: think here of Western countries, especially around what we're dealing
• 29:26
  Speaker 1: with on the national debt side. We definitely want to
• 29:28
  Speaker 1: have you back on because I want to dive into
• 29:30
  Speaker 1: the amount of liquidity that is sitting on the sidelines
• 29:34
  Speaker 1: in things like money market funds, the stabilization of banks
• 29:38
  Speaker 1: and what that looks like. So i'd love I know
• 29:40
  Speaker 1: that's another conversation, but we'll definitely try to get you
• 29:42
  Speaker 1: back in to cover that as well.
• 29:45
  Speaker 3: Yeah, count me interested. I'd love to come back on anytime.
• 29:47
  Speaker 3: Paul and cool and thanks for having me, buddy. I
• 29:49
  Speaker 3: really do appreciate it.
• 29:50
  Speaker 1: Yeah, thank you, Andy, and for anybody, we'll leave a
• 29:53
  Speaker 1: link where you can find Andy and Miles Franklin and
• 29:56
  Speaker 1: thanks for stopping in.
• 29:57
  Speaker 2: We appreciate it.
• 29:58
  Speaker 3: Thanks, Paul.
• 29:59
  Speaker 1: Take care all right, you guys, if you're listen, if
• 30:02
  Speaker 1: you're dial into our channel, make sure and subscribe, and
• 30:04
  Speaker 1: of course get into the Diamond Circle. It's our own
• 30:06
  Speaker 1: private group where we do additional podcasts, more content out there.
• 30:09
  Speaker 2: More research for you guys, and of course.
• 30:11
  Speaker 1: You can follow me on x at Paul Baron. We'll
• 30:14
  Speaker 1: catch you next time, right here on Techpath