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Print or Collapse? | Why Bitcoin Is About to EXPLODE! | Bitcoin Simply · Simply Bitcoin

• 0:00
  We've just crossed into uncharted territory in OG and
• 0:03
  hedge fund manager said that we just tripped a major wire that
• 0:06
  requires the Fed to act unless it risked the entire system
• 0:09
  collapsing. He says that it holds too few
• 0:12
  bank reserves relative to GDP in order to maintain a healthy
• 0:15
  system. Excess liquidity in the system
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  is drying up at record pace. The Feds repo facilities, its
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  shock absorbers are down 99% and have just $5 billion in
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  reserves. What does this mean?
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  I thought that we had a capitalistic system.
• 0:30
  I thought that we had free markets.
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  No, they always need to intervene.
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  The system is a Ponzi, and we will cover exactly what the Fed
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  and the Treasury is going to need to do in order to cover up
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  the holes between now and midterm elections.
• 0:43
  This is Dante Koch with Bitcoin. Simply let's go all right, let's
• 0:50
  get started with the juicy news. Hedge fund manager in OG James
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  Lavish put out a fire newsletter in his publication the
• 0:56
  informationist this morning. He basically laid out the case
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  for why the Fed is screwed while liquidity is drying up in what's
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  going to happen next. The reverse repo facility
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  basically the feds shock absorber is down 99% from
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  trillions of dollars to just 5 billion over the last several
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  years. In fact, it's fallen from 600
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  billion to just 5 billion today and that's just in a matter of
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  10 months. At the same time, he highlights
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  that reserves are down and are dwindling.
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  They've fallen by over a trillion dollars in the last two
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  years. This is Money that the banks
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  hold in reserve at the Fed. And he goes on to highlight
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  another crucial fact. The spread between the sulfur or
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  the overnight fed funds rate and the effective federal funds rate
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  is blowing out, which means that there's less liquidity in the
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  system and people are unwilling to take free money when it's
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  offered to them. And if we're starting to figure
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  this out, it's a fact that Jerome Powell knows that this is
• 1:47
  happening, too, which is why he probably probably is signaling
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  that we're moving from quantitative tightening to
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  quantitative easing. the Fed has no choice but to print.
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  It can do this several ways, increasing the money supply
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  broadly into the markets. They can raise capital by
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  raising the repo rates, allowing the banks to earn more money on
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  the money that they're able to print out of thin air, which
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  they will use to buy Treasuries to fund the debt that the United
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  States government has. Another form of printing.
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  Oh, yeah. Because the United States
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  government is burdened with debt, $37.9 trillion worth of
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  debt. It's grown $1.7 trillion since
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  the ceiling was lifted in July. That's $425 billion every month,
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  or $25 billion a day, roughly. The train isn't stopping.
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  And this was explained in an awesome clip and segment from a
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  great episode that happens every Friday between Jordy Visser and
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  Anthony Pompliano. Jordy Visser lays out exactly
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  what's going on and what James Lavish explained in his
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  newsletter. This is part of fiscal
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  dominance. This is what you have to
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  understand. I don't even know the best way
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  to describe it because there's a lot of terms like Sofur, the
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  standing repo facility. Let's just say you're a
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  homeowner and all of a sudden you have a lot of bills coming
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  at the same time and you're scrambling to get cash because
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  you don't have enough cash sitting around.
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  That's kind of where the financial system is right now in
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  the US. There's a certain threshold
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  level of where bank reserves need to be.
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  And if it goes below that, the banks will have to kind of rush
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  for cash and go through it. So there's been this pressure
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  which normally happens every quarter end, but it's happened
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  now. And I think part of the reason
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  it's happened now is because of the first brands and Tricolore,
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  which when you're really tight to the level, you end up with a
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  lot of kind of people scrambling around.
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  So all of a sudden SOFR, which has to do with overnight, let's
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  say collateral back securities, the spread has gotten extremely
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  high, which says there's problems going on.
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  Jerome Powell said this week we're probably going to have to
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  stop QT. So for everyone out there that
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  got them kind of freaking out, the problem is guess what
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  checkmate. You got the Fed QT, they're
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  buying the bonds from the Treasury and the Treasury needs
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  to issue lots of debt because the debt didn't get any better
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  this year. So remember when we started the
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  year, there's a debt deficit, you know, problem.
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  We did dodge all this stuff. Nothing has solved the problem.
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  And so we have these revenues coming in on the tariff.
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  That's all well and good, but we still have the Treasury issuing
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  lots. And this gets back into the
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  Michael Howell thing, which is we have a lot due this year, we
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  have a lot due next year. And so this puts pressure under
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  the Fed and that's why they can't let the runoff happen
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  anymore. And that just means that they're
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  going to be in the market easing liquidity whenever these happen.
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  So I don't think this is a one off shock because what's causing
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  the first brands in the Tricalore, it's the K shaped
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  economy. We have a problem guys.
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  And unless the labor market gets better, which is not going to
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  happen with AI into the midterm elections, they're going to have
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  to juice the system. Another reason to be positive on
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  Bitcoin. So regional banks.
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  We all know that this leads to money printing.
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  We all know that the system is a Ponzi and that the winners are
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  predetermined. We live in AK shaped economy and
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  the government is so large that it cannot let the system fail.
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  The system is financialized and the system is the equity
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  markets. They cannot crash.
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  We must move to a new system, not through collapse, but
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  through a slow and gentle deflation into another system
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  completely. And we know what that new system
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  is going to be. The Fiat system is a Ponzi
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  scheme. It is of course, but the
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  government was 7 trillion of debt in 2007 when Michael Bury
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  challenged the system. When George Soros challenged the
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  system or Druckenmiller challenged the system, they were
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  big relative to the system. Now the government is $37
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  trillion, it's 120% of GDP. They can't allow it to go under,
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  and they have tools that were created.
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  We still have QT. We weren't supposed to have QE
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  for more than a year after we did it.
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  Bernanke told us it wouldn't be here.
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  So for everyone kind of going through this, unfortunately for
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  all of you, it is not only a Ponzi scheme, but the end game
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  is not at crashing. The end game is it being
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  replaced by the new system. The new system is stablecoins,
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  the new system is Bitcoin. The new system is tokenization.
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  All of this is coming and next year is going to be a boom year
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  for all of those things. Right now, that system has
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  rewarded the people who own the hardest assets in the 20th
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  century, which is gold, which has been the best performing
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  asset over the past 20 years, minus Bitcoin.
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  Over the last two years, gold has moved from 4% to 6% of all
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  the investable assets. But before it was at 22% of
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  investable assets, meaning that. But the world has moved away
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  from its desire to want hard and scarce assets, and people still
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  don't seem to understand the importance of hard and scarce
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  assets. Listen to this clip between
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  Andrew Ross Sorkin, Bill Meyer and Mark Cuban.
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  Gold prices hit records high this week.
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  Oh, they did. Yes, they did.
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  Oh, and that, that that didn't sound good.
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  That's not a good sign. Usually gold goes up.
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  It's good if we're decorating the White House.
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  Gold goes up when you're worried about the value of the dollar
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  going down. That's the equation.
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  What has the dollar done? But people go to gold when they
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  are scared, right? Yes, it's so it's so crazy gold.
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  I mean it's so anti. I mean, what are you going to do
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  with gold, right? Walk around with a bar and hit
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  somebody over the head, you know, And then it's like, no.
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  And also like, I mean, I think I have some gold in My Portfolio.
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  I don't actually have it in my right.
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  It's just says it's still something just right on, right?
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  Still digital, right? Yeah, right.
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  It's still like I own gold. Like I said, gold has performed
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  fantastically. It's outperformed every asset in
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  the market over the last 20 years except Bitcoin, and the
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  numbers aren't even close. And that's because we're
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  transitioning between analog assets to digital assets, from
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  physical capital to digital capital.
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  And the world has yet to understand that Bitcoin is going
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  to be the big winner from this. The Sky's the limit.
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  We haven't even been close to a stimulatory environment since
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  Donald Trump has taken office. We've had high CPI prints
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  instead of low CPI prints. We've had tariffs instead of tax
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  cuts. We've had wars instead of peace.
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  With AI going to increase productivity in earnings in
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  these publicly traded companies, the Sky's the limit for what's
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  going to happen. In addition to the Fed entering
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  into a QE policy, the race is going to be on to acquire more
• 8:14
  Bitcoin, and there will be a new price discovery that we can't
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  even fathom right now. When this price discovery
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  happens, it's going to happen quickly.
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  The reason I'm buying Bitcoin is because I think when we get
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  through the all time highs again and basically get rid of this
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  four year cycle belief, now there's no imaginary place for
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  people to ever again care about. And that's normally what happens
• 8:34
  in equity markets. And oh, by the way, 2017 was the
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  end of the Donald Trump tax cuts.
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  We've had tariffs this year. We've had bad stuff happen this
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  year. The equity market in 18 was bad
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  at one point. It was down 20% year to date in
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  December. In 2022, the equity market was
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  down. So the one thing about the
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  Bitcoin having cycle, it seems to have been trading with
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  traditional finance markets. So when you say that bitcoins
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  for your cycle is going to play out next year, you're also
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  embeddedly saying you don't believe in AI and you don't
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  believe profit margins are coming and you don't believe the
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  earnings are going to be higher and the S&P is going to go
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  higher and you don't believe that the Fed's going to cut
• 9:07
  interest rates. Yeah, exactly.
• 9:09
  The Fed's going to cut rates, but.
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  It's not going to come without volatility, something that
• 9:13
  Samson Mao calls his Max Payne theory and that the biggest
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  winners are going to be the people that are able to most
• 9:18
  tolerate those extreme levels of volatility.
• 9:21
  But we'll get to that right after the break.
• 9:23
  If you've been stacking Bitcoin relentlessly over the past
• 9:25
  several years, but don't want to let go of your Bitcoin, well,
• 9:27
  you're not alone. And that's why let him was
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  But you get .25% off your first loan by using the promo code
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  simply or going to learn dot leaden dot AO slash simply.
• 10:12
  One of the ways you can continue to grow in your sovereignty is
• 10:14
  by removing your Bitcoin from exchanges.
• 10:17
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• 10:19
  with a coach who can help you to learn how to do this privately,
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• 10:25
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  The Bitcoin Way by going to the bitcoinway.com/simplybitcoin.
• 10:43
  I also have another theory called Max Payne theory and that
• 10:46
  is like the most painful outcome for the most people is the most
• 10:49
  likely outcome. So if we think that Bitcoin
• 10:53
  volatility is always going to be low and we just gradually stair
• 10:57
  step up to 1,000,000 and to 10 and to dollar parity with Sats,
• 11:02
  that is the best case for the world.
• 11:04
  Everyone has a long time frame to accumulate.
• 11:07
  Everyone has time to buy and I don't think that's going to be
• 11:10
  the case and I think a lot of people realize this.
• 11:13
  If you look at Sailor and strategy, he's buying any time
• 11:16
  like it. It doesn't matter if it's a top.
• 11:19
  He's doesn't care about dips because there is this urgency
• 11:22
  because the time is running out to buy Bitcoin at these low
• 11:27
  prices. So we're going to see a fast run
• 11:30
  up and gold is a good parallel for what we're likely to
• 11:33
  experience with Bitcoin. If you look at the picture
• 11:36
  circulating right now on the Internet, there are people
• 11:39
  lining up forming queues to buy gold and gold is at an all time
• 11:43
  high. So nobody wants Bitcoin when
• 11:45
  it's in the low 100 KS. But once we get to like half
• 11:49
  $1,000,000 per Bitcoin, I think the world's going to wake up,
• 11:53
  central banks are going to wake up, and nation states are going
• 11:57
  to start joining the race. And that's when you go to
• 12:00
  1,000,000 very quickly and beyond.
• 12:03
  Samson mentioned Sailor in this clip, highlighting one simple
• 12:06
  fact that the people that tend to be the biggest winners are
• 12:09
  the ones that have a relentless focus and drive and are able to
• 12:12
  do a simple thing consistently over a long period of time.
• 12:16
  And that's why Michael Saylor says that the most important dot
• 12:18
  is always the next one. He continues to stack
• 12:21
  relentlessly. But Michael, Michael Sailor
• 12:22
  might be a little bit crazy for you.
• 12:24
  So here's a couple of other indicators to show you why the
• 12:27
  market is about to have a melt up before it has a meltdown.
• 12:30
  On Friday morning, the VIX jumped above 28.
• 12:33
  Every time that the VIX has jumped above 28 and it's been
• 12:35
  within 3% of all time highs, Well, we've had some fireworks
• 12:39
  afterwards. This happened in 1999, in 2020
• 12:42
  and 2021. One year later, the market's up
• 12:45
  on average 21% after these sorts of events.
• 12:49
  And one other thing that tends to happen is that when gold runs
• 12:53
  Bitcoin sprints, we said this on the show a lot, but also when
• 12:56
  gold finds a local top or a new top, well, assets tend to rotate
• 13:00
  into Bitcoin. In fact, in 2020, when gold
• 13:03
  reached a local market top around $2000 an ounce, well, a
• 13:07
  lot of that money rotated into Bitcoin and Bitcoin was up 550%
• 13:12
  after gold reached that local top.
• 13:13
  Are we near topping gold? That remains to be seen, but
• 13:17
  still, when gold runs, Bitcoin sprints, and gold has had a year
• 13:21
  for the ages. In fact, it's been his best
• 13:23
  performing year, up over 65% since 1979 when it was up over
• 13:27
  126%. History doesn't repeat, but it
• 13:30
  rhymes and it's leaving a lot of clues and making a good beat
• 13:33
  right now. It appears that through the end
• 13:35
  of this year and through the middle of next year when midterm
• 13:38
  elections come around, there's a lot of reasons to be bullish on
• 13:41
  assets like Bitcoin and why Bitcoin is most likely to be the
• 13:44
  biggest winner when it comes to QE.
• 13:47
  When it comes to the Fed being backed into the corner and
• 13:49
  needing to unleash liquidity into markets when it goes to tax
• 13:52
  cuts from tariffs, the market is going to be incredibly
• 13:55
  stimulatory and the hardest assets that also have a digital
• 13:59
  backing like Bitcoin are going to be the biggest winners.
• 14:02
  Don't overcomplicate the trade, stay humble and stack sets and
• 14:05
  continue to build this digital network and knowledge around
• 14:08
  Bitcoin in real life by going to conferences like the Mining
• 14:11
  Disrupt conference in November. About a month from now, from
• 14:14
  November 11th through November 13th, some of the largest
• 14:17
  Bitcoin miners and manufacturers and keepers of the network are
• 14:20
  going to be down in Dallas, TX. Most of them will likely have
• 14:22
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• 14:27
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  Bitcoin for 20% off your ticket. And if you haven't already
• 14:32
  subscribed to the channel, do so.
• 14:34
  Share this video if you continue to get value from these
• 14:36
  episodes. This is Dante Coco Bitcoin
• 14:38
  simply happy stacking.