Latest / The Paul Barron Crypto Show / China's Liquidity Pump Is Draining Crypto 📉 Tether May Have Saved Us 🔥

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China's Liquidity Pump Is Draining Crypto 📉 Tether May Have Saved Us 🔥 · The Paul Barron Crypto Show

• 0:00
  Speaker 1: China is draining liquidity out of crypto today. We'll break
• 0:03
  Speaker 1: it down for you because this is going to indicate
• 0:06
  Speaker 1: where this market could be going. I want to thank
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• 0:44
  Speaker 2: Let's just get right into it.
• 0:46
  Speaker 1: I want to start with this right here, and this
• 0:48
  Speaker 1: is the chart of the Shanghai Composite Stock Market Index.
• 0:53
  Speaker 1: What you're seeing here is a little bit of down trend, yes,
• 0:57
  Speaker 1: a little bit of a spike right here. And I
• 0:58
  Speaker 1: think the point being is what's going on right here,
• 1:01
  Speaker 1: and that is are US investors dumping Chinese equities? Well,
• 1:06
  Speaker 1: if you look at it, it appears that maybe that's happening.
• 1:10
  Speaker 1: Right on the face of this, it looks like it.
• 1:12
  Speaker 1: Right everybody sees those tickers they're concerned about getting delisted
• 1:16
  Speaker 1: from Trump. And the thing is is that this now
• 1:20
  Speaker 1: can easily be sorted through Hong Kong instead, So that
• 1:24
  Speaker 1: means that the US can essentially get it's only a
• 1:28
  Speaker 1: US listed rapper. Remember, this is what we're they're concerned with.
• 1:31
  Speaker 1: So if that exit is happening, the money can now
• 1:33
  Speaker 1: go in through Hong Kong. And if you look at
• 1:35
  Speaker 1: this point right here, this is what I'm calling the
• 1:38
  Speaker 1: Chinese pump team, because they're injecting sixty billion in U
• 1:44
  Speaker 1: on this of course came in in July and this
• 1:47
  Speaker 1: was deploying about sixty billion in you on eight point
• 1:50
  Speaker 1: nine billion through stock re buybacks on facilities, and you
• 1:53
  Speaker 1: would think, okay, that's one strategy, but then again this
• 1:57
  Speaker 1: is accelerated into just now right there you have the
• 2:01
  Speaker 1: PBOC also adding more operations and more funding into this.
• 2:06
  Speaker 1: Remember China is tapping twenty eight rhon dollars markets right
• 2:09
  Speaker 1: here to fund a lot of what's happening with the
• 2:10
  Speaker 1: AI race with the US, and that I think is
• 2:15
  Speaker 1: why we're seeing this, so you can compare what's happening
• 2:18
  Speaker 1: not only with the AI liquidity, but now you have
• 2:21
  Speaker 1: to look at.
• 2:22
  Speaker 2: The first trigger.
• 2:23
  Speaker 1: So what market could affect AI the most, Well, most
• 2:26
  Speaker 1: of it's going to be the chip makers, and that's
• 2:28
  Speaker 1: where CXMT comes into play. A four hundred and sixty
• 2:32
  Speaker 1: six percent market debut serves this essentially is the SpaceX
• 2:39
  Speaker 1: of China. I guess CXMT is now surpassed ten Cent
• 2:44
  Speaker 1: in marketcap. This is just two weeks after it's listening.
• 2:47
  Speaker 1: Tencent's been on the market for years and has been growing,
• 2:50
  Speaker 1: and now it's becoming the most valuable company across all
• 2:53
  Speaker 1: of mainline China, Mainline China and Hong Kong.
• 2:57
  Speaker 2: So to my point, very significant here.
• 3:00
  Speaker 1: If you look on hyper liquid CXMT, this is on
• 3:04
  Speaker 1: the hourly, look at this dry in and you can
• 3:06
  Speaker 1: see very strategic times in which we get capital injection.
• 3:12
  Speaker 1: Very strategic. This is all I believe orchestrated by these
• 3:17
  Speaker 1: pump teams that are being developed around the world. In reality,
• 3:20
  Speaker 1: if you think about it, and if you look at
• 3:23
  Speaker 1: their AI structure right now, I'll kind of zone in
• 3:25
  Speaker 1: on this rate here.
• 3:27
  Speaker 2: This is of course China's Kimmy AI.
• 3:29
  Speaker 1: This of course scanned nearly all of Bitcoin's open source code.
• 3:33
  Speaker 1: This flagged eight thousand different flaws. So now you've got
• 3:36
  Speaker 1: Chinese AI basically outpacing what we're seeing in the US.
• 3:41
  Speaker 1: Or maybe we just haven't released this kind of data,
• 3:43
  Speaker 1: but the Bitcoin Red team now has covered five hundred
• 3:45
  Speaker 1: one projects, twelve hundred and eighty critical. And now you've
• 3:49
  Speaker 1: got Kimmy coming in and saying, no problem, hold our
• 3:51
  Speaker 1: beer because this is now happening with eight thousand flaws
• 3:55
  Speaker 1: with bitcoins. So this is a concern that I think
• 3:57
  Speaker 1: will continue to drive into the market in general, and
• 4:01
  Speaker 1: within that you're going.
• 4:03
  Speaker 2: To have to fight fire with fire.
• 4:04
  Speaker 1: So you have the FED opening the liquidity faucet and
• 4:08
  Speaker 1: grabbing liquidity on Alphabet, especially around the AI complex. If
• 4:14
  Speaker 1: you think about this too, remember we just did a
• 4:17
  Speaker 1: show this week where we talked about Warren Buffett coming
• 4:20
  Speaker 1: off the sidelines and what did he come off the
• 4:22
  Speaker 1: sidelines for Alphabet? So is he a private pump team
• 4:27
  Speaker 1: for what's happening with the FED, which is the other
• 4:29
  Speaker 1: pump team who's battling the pump team in China. All
• 4:33
  Speaker 1: of this is starting to look very eerie. And then
• 4:35
  Speaker 1: of course you look at the balance sheet. Right here
• 4:37
  Speaker 1: is this little bit right here, a little bit of
• 4:41
  Speaker 1: our little baby pump that's working within these markets. So
• 4:45
  Speaker 1: speaking of how this is happening, well, you look at
• 4:48
  Speaker 1: the VC money and all of the investment capital that's
• 4:51
  Speaker 1: moving into crypto. In the past it had been very significant.
• 4:56
  Speaker 1: AI is quietly taking over the crypto sector. AI st
• 5:00
  Speaker 1: startups right now raised in twenty twenty six five hundred
• 5:03
  Speaker 1: and ten billion, and crypto startups raised thirteen billion.
• 5:08
  Speaker 2: All right, so think about that.
• 5:10
  Speaker 1: That's the chart right there, guys, I can't even you
• 5:12
  Speaker 1: can barely even see.
• 5:13
  Speaker 2: Crypto on the chart.
• 5:14
  Speaker 1: But that's my point is it is thwarting it completely
• 5:18
  Speaker 1: and it is exactly why we have continued to see
• 5:20
  Speaker 1: a bleed of the crypto asset market flowing into this.
• 5:24
  Speaker 1: And further, to add further insult to injury, you've got
• 5:27
  Speaker 1: Apple out there with their own pump team that seems
• 5:30
  Speaker 1: to be pumping for China because now they're doing a
• 5:33
  Speaker 1: whole AI model internally with Ali Baba's support. This of
• 5:37
  Speaker 1: course is Apple's training its own China specific AI model.
• 5:40
  Speaker 1: So I'm assuming this for the Chinese products. I'm assuming
• 5:43
  Speaker 1: that Tim and you know, President Trump have talked about this,
• 5:46
  Speaker 1: but we'll see. Let's go over to another topic, and
• 5:48
  Speaker 1: that is China's internationalizing their goldback you on and their
• 5:53
  Speaker 1: payment system first time ever. And if you go down
• 5:56
  Speaker 1: all the way on Stern Drew, he's talking about a
• 6:00
  Speaker 1: very specific area here. As soon as China banned retail
• 6:04
  Speaker 1: paper gold market, the Chinese investors turned to tokenized gold
• 6:08
  Speaker 1: on blockchains. That is why we could see an attack
• 6:14
  Speaker 1: essentially on fiat in general, especially the US dollar as
• 6:17
  Speaker 1: the global reserve, because.
• 6:18
  Speaker 2: Here's the plan.
• 6:19
  Speaker 1: China is taking the yuan international first time ever, and
• 6:22
  Speaker 1: the preparation includes physical gold vaults clearing, and then they're
• 6:27
  Speaker 1: trading in Hong Kong and we're having to basically battle
• 6:31
  Speaker 1: against this. So you have that happening around where the
• 6:35
  Speaker 1: liquidity drain is coming from Ai and now you have
• 6:38
  Speaker 1: the pressure of gold trying to go at the dollar
• 6:41
  Speaker 1: full tilt. The UK's FCA is now also preparing a
• 6:45
  Speaker 1: regulatory framework of tokenised gold, saying wait, wait a minute,
• 6:48
  Speaker 1: we need a pump team. So they're in there trying
• 6:51
  Speaker 1: to protect London's dominance in bullion around this and this
• 6:55
  Speaker 1: is all pointing directly at China because of what they're doing.
• 7:00
  Speaker 1: I remember China has been the scenario that has the
• 7:02
  Speaker 1: most people out there that's probably going into tokenized gold.
• 7:04
  Speaker 1: So this starts to boil up, and it starts to
• 7:07
  Speaker 1: showcase something very interesting, and that was Tether's drop of
• 7:12
  Speaker 1: their news. Tether drops this just out of nowhere. Wasn't
• 7:16
  Speaker 1: on the bingo card. They completed the largest inaugural financial
• 7:20
  Speaker 1: audit in their history. And if you look further into this,
• 7:24
  Speaker 1: all zoom in on that part right there. KPMG the
• 7:27
  Speaker 1: auditor physically counted and inspected every individual gold bar held
• 7:33
  Speaker 1: by Tether, and you've got Paalo talking about it right here.
• 7:36
  Speaker 1: This is a defining moment for the stable coin industry.
• 7:39
  Speaker 1: And I would agree this is a pretty big step
• 7:41
  Speaker 1: because it is going to put a lot of pressure
• 7:44
  Speaker 1: on someone like an Elizabeth Warren who's always been kind
• 7:47
  Speaker 1: of pointing at this is where the bad guys are,
• 7:49
  Speaker 1: but in reality, this is out there holding assets in
• 7:53
  Speaker 1: a way you wouldn't expect. Let me play a clip
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  Speaker 1: right here, here's Paulo talking about it.
• 7:57
  Speaker 3: Take a look, especially with important people like Senator Warren
• 8:02
  Speaker 3: going out and specifically calling out Tetror and suggesting that
• 8:07
  Speaker 3: auditors should not touch us with a ten football. That
• 8:10
  Speaker 3: creates some certain uncertainty with these auditing firms in the past.
• 8:15
  Speaker 3: Even just the fact that we went with the non
• 8:20
  Speaker 3: US firm that was in this case doing our testation
• 8:23
  Speaker 3: BDO was a matter of controversy. So we decided to
• 8:29
  Speaker 3: put ourselves through the highest of the possible scrutiny with
• 8:33
  Speaker 3: the KPMG US. If someone cannot admit their wrong they
• 8:37
  Speaker 3: will never grow up as a human being. And honestly,
• 8:39
  Speaker 3: I don't care. We proved ourselves many times. We proved
• 8:42
  Speaker 3: ourselves with doing more redemptions in a single day, in
• 8:46
  Speaker 3: twenty four hours and forty eight hours, that any other
• 8:49
  Speaker 3: financial institution did in the history of finance. We did.
• 8:53
  Speaker 3: We were deemed seven billion dollars in forty eight hours,
• 8:56
  Speaker 3: when that was ten percent of our reserves. When every
• 8:59
  Speaker 3: single finance institutional bank that was subject to ten percent
• 9:02
  Speaker 3: or more of redemptions in a short amount of time
• 9:05
  Speaker 3: went pelly up. And honestly, I'm happy to be keppt
• 9:08
  Speaker 3: on my toes.
• 9:10
  Speaker 1: So from listening to that clip, there the biggest uncertainty
• 9:14
  Speaker 1: cloud that's been hovering over all of US has essentially
• 9:17
  Speaker 1: been lifted, especially around stable coins. This changes the whole
• 9:20
  Speaker 1: perspective of what Tether is and now will be in
• 9:24
  Speaker 1: the US as a legal US stable coin available, So
• 9:30
  Speaker 1: a pretty big shift. Let's look at this right now
• 9:34
  Speaker 1: and think about what Tether's this major audit means, because
• 9:38
  Speaker 1: you kind of have to connect the dots here. Let's
• 9:41
  Speaker 1: take a look at Canter fitz Joe. This is a
• 9:43
  Speaker 1: company out there led by Howard Lutnik, who is our
• 9:46
  Speaker 1: Commerce secretary. This guy has a five percent stake in Tether, who,
• 9:52
  Speaker 1: by the way, also has one hundred and thirty eight
• 9:55
  Speaker 1: billion in Treasury bills that are tied to this. So
• 9:59
  Speaker 1: now you've got all of this connected to the Treasury,
• 10:03
  Speaker 1: who is now connected to the administration, with Tether now
• 10:06
  Speaker 1: all being improved. So this is, I think, in general,
• 10:10
  Speaker 1: is good. But the problem you have is this is
• 10:13
  Speaker 1: now going to circle back to Senator Warren. I'm sure
• 10:16
  Speaker 1: who is going to look at this and connect the
• 10:17
  Speaker 1: dots on Canter Fitzgerald, what we're dealing with Lutnik, and
• 10:21
  Speaker 1: then of course the whole issue starts again. But I
• 10:23
  Speaker 1: think the point being is we are dealing with a
• 10:26
  Speaker 1: liquidity movement right now globally, and it is definitely starting
• 10:31
  Speaker 1: to shift away from the US dollars. So we're going
• 10:33
  Speaker 1: to continue to follow this very very closely. If you
• 10:43
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• 10:45
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• 10:49
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