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Did The Great $38 Trillion Bitcoin Reset Just Begin?! | Simply Originals · Simply Bitcoin

0:00
Oh, looks like America's money printer just broke the sound
0:04
barrier and it's monetary. Pearl Harbor in Japan.
0:07
They're handing out free money again.
0:10
Jay Pals over here whispering about ending QT and gold.
0:15
Your grandpas safe haven just got wrecked and yet bitcoins
0:20
just sitting there like a loaded slingshot waiting for gravity to
0:24
flip or gravity to fall. Shout out to Uncle Grandpa, but
0:28
buckle up because today we're breaking down the great $38
0:31
trillion Bitcoin reset. Because when every central bank
0:35
on earth is printing and $140 trillion in Fiat is hunting,
0:40
just two to three million Bitcoin available on the open
0:43
market, tackling fuel, Well, $1,000,000 Bitcoin is not a
0:47
crackpot theory anymore. It's 10th grade math.
0:56
Let's start with Japan. New Prime Minister Sunay
0:59
Takaichi just ordered a fresh stimulus package.
1:02
More subsidies, more handouts, more solutions paid for with
1:06
monopoly money. Electricity and gas subsidies,
1:09
regional grants, even wage incentives for small businesses.
1:13
And as a part of it, they're spending billions more on
1:15
defense and, quote, strategic investments with the US, which
1:20
translated from politician to English, means we're printing to
1:25
fight in with more inflation. That's a bold strategy, Cotton,
1:29
because if that works, Zimbabwe would be the richest country on
1:33
the planet. And this is the same game
1:36
everywhere now, a global contest to see who can debase their
1:40
currency the fastest without the peasants figuring out what's
1:43
going on. There it is. the US is basically
1:47
$38 trillion in debt, and that's before the next bailout, war or
1:52
emergency spending bill gets tacked on.
1:55
That is not sustainable. That is not normal.
1:58
That's end game territory. For decades, the dollar's
2:01
reserve status let America live like a spoiled trust fund kid.
2:06
Print, Spend, borrow, repeat. But that exorbitant privilege is
2:11
cracking. The dollar's share of global
2:13
reserves just hit its lowest level in 30 years.
2:16
Foreigners don't want our paper anymore.
2:19
China and Japan, America's biggest lenders, have flipped
2:22
from buyers to sellers of Treasuries.
2:24
So who's left to fund the party? Washington's answer?
2:29
Stable coins. You've heard about the Great
2:31
Reset now meet its evil twin, the Great Stable Coin Reset.
2:35
This is basically the government's plan to repackage
2:39
the same old debt Ponzi with digital lipstick.
2:42
They're not fixing the system, they're moving it to the cloud.
2:46
Stable coin legislation backed by U.S., Treasuries or T-bills
2:52
will create a market that will expand in U.S. dollar usage via
2:58
the stable coins all around the world.
3:00
And I think the 2 trillion is a very reasonable number and I can
3:08
see it greatly exceeding that. Stable coins are the new weapon
3:14
of choice. When someone mints USDT or USDC,
3:17
the issuer buys real U.S. Treasuries to back it, and that
3:21
creates artificial demand for the dollar.
3:24
But through private crypto shit coin rails.
3:27
And Washington loves it because if they can regulate stable
3:31
coins, they control them. They can literally turn the
3:34
entire ecosystem into a Treasury demand machine.
3:38
Even Treasury Secretary Scott Besson said it a $2 trillion
3:41
stable coin market market is the goal.
3:44
And at that size, Tether and Circle would.
3:46
And at that size, Tether and Circle would hold more U.S. debt
3:50
than China and Japan combined. You can't make this up.
3:54
They're basically saying we can't sell enough bonds the old
3:58
fashioned way, so let's coerce stable coin issuers to buy them.
4:01
And while Washington tries to duct tape the Treasury market
4:04
with stablecoin witchcraft, the real story is happening in the
4:08
background. The largest monetary detonation
4:10
in human history already happened, and most of the world
4:14
slept through it. Global M2, The total money
4:16
supply is now 140 trillion, up almost 8% in just six months.
4:22
That's 10 trillion in fresh liquidity since spring.
4:25
That's not stimulus, that's the basement.
4:28
Stimulus is actually stim useless.
4:32
Every new dollar, yen, euro and peso printed steals from
4:36
existing ones. You don't really see your wallet
4:39
shrinking, but you're purchasing powers bleeding out faster than
4:42
a Fiat economist credibility. The issue that has always swept
4:45
down through the century, and it will have to be fought once
4:48
again, is the people versus the banks.
4:50
And I think it's a quote that defines the moment that we're
4:54
in. Ultimately, the banks and the
4:59
bond market have won for 40 years.
5:01
Policy, economic policy in this country, be it what the Fed has
5:05
done with rates, be it with the offshoring of the industrial
5:08
base to lower deficits or, excuse me, to lower inflation,
5:14
reduce costs, etcetera. It has all been done with one
5:18
goal in mind, which is to subjugate the US middle and
5:22
working class to support the real value of the bond market
5:26
and and by extension, Wall Street.
5:28
And that has not been taken too far.
5:31
And so if we want to be where I think most Americans would agree
5:36
we want to be, then, yeah. Pain is all in the eye of the
5:39
beholder, right. It's something I say all the
5:41
time is, you know, what's normal for the spider is chaos for the
5:43
fly, right. If you if, if you own lots of
5:46
long term Treasury bonds, you know, Yeah, What I'm advocating
5:49
would be very painful. If you own Bitcoin.
5:52
If you own Bitcoin, if you own gold, if you own productive
5:55
businesses, if you are a working class person whose wages are
5:58
going to rise. As fast or.
6:00
Faster than inflation, maybe for the first time in 50 years,
6:06
that's that. Then that's not as painful.
6:09
And I think as a country we wake up and you have a more
6:11
rebalanced economy and more self-sufficient economy where
6:14
you're not as reliant on potential adversaries for key
6:16
things. It's tricky, it's bumpy.
6:20
I'm there's no guarantee it's going to work.
6:23
We let it go on so long. It's a little bit more market
6:28
driven, paradoxically, right. Ultimately, if we do those
6:32
things, there's there should be more inflation, but that
6:35
inflation is a market signal telling us, hey, you've under
6:40
invested for 40 years in your industrial base, in your working
6:44
class, in your skilled trades, in your young people and now you
6:47
need to catch up and doing that is going to be.
6:50
Inflationary and that's. That, you know, that is just
6:54
the, the, the fallout of the decisions we've made over the
6:57
last 30-40 years. And Fed chairs Rome Powell just
6:59
confirmed that quantitative tightening is about to end.
7:02
He said, quote, we may approach that point in the coming months.
7:06
Translation. We've drained all the liquidity
7:08
we can without completely breaking the system.
7:11
The banking systems out of spare cash.
7:14
The feds reverse repo facility, their overflow account that held
7:18
2.5 trillion in excess cash is basically empty, and the regular
7:23
repo market where banks borrow overnight is starting to spike
7:27
again. And that's exactly what happened
7:29
in 2019 before the Fed quietly restarted QE.
7:34
When the repo market screams, the Fed prints every single
7:39
time. Expect that the process of
7:40
getting inflation sustainably down to 2% has a long way to go.
7:45
The labor market remains tight, although improvements in labor
7:48
supply and a gradual easing in demand continue to move it into
7:52
better balance. GDP growth in the third quarter
7:56
was quite strong, but like most forecasters, we expect growth
8:00
growth to moderate in coming quarters of course by.
8:06
Refusing to treat climate. Change like this is thank you.
8:10
Thank you very much, disaster. Thank you very much.
8:15
Thank you. Just close this fucking door.
8:20
Close the door. That clip is a total classic.
8:26
But now we're right back in the same trap.
8:28
Rates too high, confidence collapses.
8:31
They print to save the system. Inflation returns.
8:34
Rates can't drop. They print again.
8:36
And that's what the European Central Bank and Ray Dalio call
8:39
the debt doom loop. And the US is leading the
8:43
parade. Yeah, leading the parade in a
8:45
giant clown suit. Interest payments alone just hit
8:48
1.2 trillion. That's 1/5 of the total US
8:51
revenue. That's like maxing out your
8:53
credit card, then taking a payday loan.
8:56
And that payday loan is just there to cover the interest.
8:59
But don't worry, the experts say it's under control.
9:03
There's only two options here. Print or die at 235% global debt
9:08
to GDP. The menu is simple default, but
9:12
that would be political suicide, austerity, but that would be
9:17
economic suicide. Or print.
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That's a thermodynamic inevitability.
9:22
They chose print. They will always keep choosing
9:26
print. Bitcoin is the very simple
9:27
story. They are never going to stop
9:29
printing money, so therefore Bitcoin will never stop going
9:32
up. And if you simply think of
9:33
Bitcoin as savings technology, all you have to do is go out,
9:36
work hard at your job, make money, spend less than you make,
9:39
and then put the extra savings into Bitcoin and then allow
9:42
Bitcoin to benefit from what we know is going to happen, which
9:45
is they are never going to stop printing money.
9:46
And I think that that simplicity is actually very attractive to
9:50
some cohort of investors. And now you see investors
9:52
saying, wait a second here, this quote UN quote debasement trade
9:55
means that I don't have to go do all that work.
9:57
I can simply just go and buy something like Bitcoin.
9:59
And I think that really maybe the story of finance of this
10:02
decade is that Bitcoin is becoming the hurdle rate, right?
10:05
Historically, we've looked at things like the S&P.
10:07
If you go back to 2020, the S&P is up 100% since 2020.
10:10
The priced in Bitcoin is down 90%.
10:12
All of the returns that people are talking about in traditional
10:14
finance, most of them are negative because no one can beat
10:17
Bitcoin. And so if you can't beat it,
10:19
then we just say you got to buy it.
10:20
And I think that's what a lot of investors are starting.
10:22
To do every regime in history has done the same thing.
10:25
It's the physics of Fiat. Once you cross that debt
10:28
Rubicon, there ain't no going back.
10:30
You can't not print and here's the mechanism nobody in
10:35
mainstream finance wants to talk about.
10:37
When global M2 expands, Bitcoin doesn't immediately react, it
10:41
lags. It's like a volcano.
10:44
There's a silent build up and then a boom.
10:47
In 2020 money supply exploded and Bitcoin followed nine months
10:51
later with a 6X rally. Now M2 is up 7.8% year to date
10:56
and bitcoins lagging again. History doesn't repeat, but it
11:00
rhymes like Eminem with a hardware wallet.
11:03
This isn't inflation, it's a wealth transfer from infinite
11:08
ledgers to finite assets. Everyone.
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Percent expansion in global M2 historically equals about 2.8%
11:15
upside for Bitcoin, and at 7.8% that's plus 21% before adoption
11:22
and reflexivity even kick in. Do the math.
11:25
The lag is the signal. The explosion is the sequel.
11:30
Gold just had its worst week since 2008, down 6.4% in a
11:35
single day. And that's not a panic, that's a
11:37
rotation. Even Paypal's former president
11:40
David Marcus said it. Sell the gold, buy Bitcoin.
11:45
AI and Cryptozar David Sachs saying his first priority is
11:48
exploring the possibility of a strategic Bitcoin reserve.
11:52
Joining us right now in an exclusive interview to talk
11:54
about that and so much more. David Marcus, he's previously
11:57
LED crypto and payments at Meta, is the former president of
12:00
PayPal. He's now CEO of Light Spark and
12:02
company he launched in 2022 that's building payment
12:04
infrastructure on the Bitcoin blockchain.
12:07
Good morning to you. It's been a while, but it's nice
12:10
to see you, David. Good morning.
12:13
Let's try to, I'm just, you know, we're sort of seeing this
12:15
revolution at least inside of Washington, it appears around
12:20
how Congress and how this administration is going to think
12:23
about crypto, specifically Bitcoin, and how you think that
12:28
the things might manifest. If you could sort of walk us
12:30
through the permutations in your mind from a regulatory
12:33
perspective, not just on on the regulation, but also on the
12:37
strategic reserve and things like that, how this changes
12:39
things. Well, it's a brand new day for
12:43
crypto in America. Frankly.
12:46
And speaking as someone who tried to launch a project and
12:49
worked really hard to get it off the ground here at home and
12:54
having it shut down by the US government to having
12:57
conversations about regulatory clarity of Bitcoin strategic
13:01
reserve and really doing whatever it takes, frankly, for
13:06
America to lead in this revolution that will completely
13:10
rewire our, our whole financial system is, is quite a polarity
13:17
flip of, of atmosphere and energy for our entire industry.
13:22
So, you know, I'm, I'm very, very happy and excited for
13:25
what's coming. I think we're very close to the
13:28
precipice when it comes to falling behind here.
13:31
And so it's it's really amazing to what does.
13:33
The strategic reserve, Do in your mind, well look, I said
13:38
push up the price of Bitcoin. Well, you know, I think first of
13:41
all, if you look at the strategic reserves that the US
13:45
government holds in, in gold, you know, we're the number one
13:50
holder of gold in the world. And arguably, if you think of
13:53
Bitcoin as a better version of gold, digital gold, why not
13:58
allocate a portion of that reserve or rebalance a portion
14:02
of that reserve to the better version?
14:05
And you know, I think, you know, there's just a lot more
14:08
opportunity for for growth and appreciation of Bitcoin than
14:13
than gold in the next couple of decades.
14:15
So I think it's a wise decision potentially.
14:17
Capital doesn't die, it migrates.
14:19
ETF's like Blackrock's I bit just blew past 100 billion in
14:24
assets under management. Wall Street isn't fighting
14:26
Bitcoin anymore, it's front running it.
14:29
And in the corporate treasuries again, micro strategy, Trump,
14:32
media, all the other crap. CFO's stacking hearted and plebs
14:35
on a payday. Macro legend Luke Grorman says
14:38
it flat. Sovereign insolvency in slow
14:41
motion. The only way out debasement.
14:44
China's dumping treasuries. Bricks are building gold rails.
14:47
The dollar isn't dying, it's retiring and bitcoins taking her
14:52
GERB. Brent's milkshake theory is
14:54
absolutely correct around initially gold going up with the
14:58
dollar, something I posted a long time ago on X and, and, and
15:02
people familiar with the FOFOA blog and the readings of
15:06
Monetary theorist, Another and friend of another will recall
15:10
that in the late 1990s, another, another, a friend of another
15:16
said that when the dollar system is coming to the end of its
15:23
life, you will see the dollar and gold rise together.
15:27
That will be the sign that the dollars because people will be
15:30
getting squeezed into the dollar at one hand, but they'll also be
15:33
getting out and going into gold. And so when those two things are
15:35
rising together, that's the symptom of the end of the dollar
15:39
system that was said 30 years ago, almost 25 years ago.
15:42
And so yes, the milkshake theory will see the dollar squeeze
15:48
higher. I get it.
15:49
And gold as well. And gold, once it hits critical
15:55
tipping point of price, and I don't know where that price is,
16:00
but you can see hints of it. You know, Albert Marco on excess
16:03
said a above $3000 on gold, it starts to create a problem for
16:07
the dollar. He was right.
16:08
You could go down, went down to 96, says about $5000 on gold.
16:12
It creates a problem for the dollar and for the treasury
16:14
market. He's probably going to be right.
16:16
And the point here or what he's saying when he says that is
16:21
ultimately, yes, there is this, you know, we've talked about
16:25
this, you know, $13 trillion dollar denominated liability out
16:30
there, right, in terms of foreign borrowed dollar debt
16:33
that when the dollar goes up, it squeezes people into that.
16:37
It forces them to sell Treasuries, it forces them to
16:39
sell US equities to raise the dollars to get that.
16:43
Well, once the price of gold gets high enough, it starts to
16:46
fully collateralize their dollar liability on the other side.
16:51
And suddenly it starts to provide the liquidity, it starts
16:55
to be the sink. And that is how you circumvent
17:00
the the gold is how you get out of the dollar system.
17:04
And that's why another or friend of another said all those years
17:07
ago, when you see them go up together, that means the dollar
17:10
is coming to the it's it's end of life.
17:12
That's dollar. This present form of this dollar
17:15
system is coming to the end of life.
17:16
Now does it mean the dollar is going to die?
17:17
No, they'll be using dollars and you know, you're and my
17:21
grandkids and great grandkids will still be using dollars.
17:23
They're just going to buy us a lot less.
17:25
And certainly in gold terms, de facto we can see gold with
17:32
today's price move has, has overtaken treasuries in global
17:36
central bank reserves, right. So there are now, there's now
17:38
more gold in global central bank reserves than there are U.S.
17:41
Treasuries. How do you sit there and argue
17:44
and say it's not overtaking the dollar in the system you gotta
17:47
get? To me that's.
17:48
Crazy. Now, will people still use
17:49
dollars? Of course.
17:50
Why? That's just Gresham's law,
17:52
right? I hear people say, well, it's
17:53
still dominant. 90% of currency usage.
17:57
That's dollar dominance. Great.
18:00
So you're spending. Yeah.
18:01
You're telling me it's the bad currency, right.
18:04
I will. I'll spend dollars late all day
18:06
long because there's a terrible store of value.
18:08
But if the whole change of structure we've been talking
18:12
about for years and if you watch all my posts, all my pockets,
18:16
everything ever said have never said end of dollar reserve
18:18
status since end of the post 71 structure of dollar reserve
18:23
status, which is dollar as primary reserve currency,
18:28
Treasury bond as primary reserve asset.
18:32
It happened. It's happened.
18:34
The dollar is still primary reserve currency.
18:38
The gold is now primary reserve asset as of probably this
18:41
morning with the $100 move. And I don't think it's ever
18:44
going back unless, you know, she suddenly decides to be, you
18:50
know, Yeltsin and, you know, sell off his country for pennies
18:54
on the dollar to American, you know, corporate and, and
18:56
Washington interests. And Putin decides to do the same
18:59
thing because we can't go to war to stop him.
19:03
The rare earth thing ensures. It pals.
19:04
Paws isn't policy, it is surrender.
19:07
QT ends because the bank plumbing is dry and every new
19:10
dollar printed from here is just tackling fuel for Bitcoin.
19:14
Tackling fuel now before we bring it home today, look at our
19:17
legs. 3 or 4 times maybe? I pumped those numbers up.
19:20
Those are rookie numbers in this racket.
19:22
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Do the math. When even a sliver of that tidal
20:24
wave hits, do you get banana zone?
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Welcome to Weimar. Every Fiat empire ends the same
20:30
way with inflation and excuses. The difference this time is we
20:34
have an exit. The great reset isn't coming for
20:37
Bitcoin, it's coming because of Bitcoin.
20:39
They can digitize debt and rebrand it as innovation, but
20:42
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20:46
every liar in a suit. While they print.
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With the ship. You.