Stagflation is coming? Why the markets are crashing!

hello everybody simon dixon here for an important update on the markets right now and stagnation um so i know that's a geeky term stagflation for those of you are not familiar is an environment of inflation which means the general prices are rising while the economy is declining which is the worst of both things are getting more expensive and the economy is doing um not so good and so this could be the trigger so for those of you familiar with my work um i forecasted uh a long time ago the great depression of the 2020s um but they i talked about in my book bank to the future protect your future boss which i wrote in 2011 was the first published book in the world to include bitcoin um that there would be five possible outcomes that the governments would follow now the one that the governments did follow was excessive money printing which is the gradual process of making prices rise through excessive money creation and that leading to debt defaults that lead to a more um socialist communist style way of organizing an economy because the government gets bigger and bigger and bigger and has to tax greater and greater and greater um that is certainly the policy that is being followed at the moment in order to keep the economy alive rather than suffering an economic decline and deflation which is what they are trying to prevent um so the latest news obviously is i want to zoom out because the news is going to zoom in um deeply and they're going to deeply zoom in to the evergrande 400 billion dollar debt based leverage scheme much like lehman brothers in 2007-2008 but this time the china version of that which is less systemically integrated with the global financial system because china is very much insulated in terms of outside investment into their real estate and property markets however nonetheless is likely to get some very big headlines and just wanted to get ahead of it before you start seeing all of the news and how it's reported i want to zoom out and share with you how i will be investing during this time and also what it all means as opposed to the version that you'll see on the media um so the the the the most important thing to point out is zoom right out into money creation as i always do for the last two decades i've been sharing with people how money creation is the world's largest regulated debt based ponzi scheme in the world and it will have these systemic risk events that cause the weaknesses of a regulated ponzi scheme to be exposed and it's all done through um traditional fiat currencies fiat currency is the word um for government issued currencies such as the dollar the pounds the euro etc etc so the latest one and the way that money is created globally slightly different iterations around the world is that it is created as debt so you have different forms of money you have um cash and coins which is created by governments you have digital currency which is created by private banks every time they issue a loan and so in order to stimulate real estate markets you create new digital currency every time you issue a loan and that makes up the money supply as that debt gets repaid the money disappears um but the money tends to re-hypothecate and get greater and greater and drive more and more debt globally and so the other form of money is the new form which is central banks digital currencies and central banks uh creating money through quantitative easing which is where slightly more complicated but they are creating digital currency and using it to purchase debt instruments like bonds of the government in order to increase government debt so that you can have more money and so this leads to the rules of the economies that i've been trying to share with people for the last two decades if you want to have more money you have to have more debt if you want less debt you have to have less money under the existing rules and so an inevitable predictable and guaranteed outcome is that you will get consumer debt business debt government debt central bank debt ever increasing in order to make the economy uh stay alive in order to increase the money supply and so china is just really the latest in the world's largest regulated ponzi scheme where one of those institutions a corporation um called evergrand or whatever grande um however we want to say that um has reached over leverage of over 400 billion dollars which could cause systemic risk in the entire financial system um and so as a result of that markets are tumbling and so we've had a crash in uh markets all round that's also affected uh the bitcoin market as well why because the markets are the competition for currency and so currency is the money created by governments and banks via currency um and it is always increasing in supply because debt is always increasing and so as you always increase debt in order to increase the money supply the value of money decreases so it's why people can't save in currencies like the pound the dollar and the euro because they have to try and beat um the effects of inflation which is the price of goods going up which means that your purchasing power decreases and you have to work harder and harder and harder in order to purchase the same amount of goods is why a family used to be able to run with one person providing for the whole family but now the whole family have to go out and work in order to purchase a similar amount of goods and they have to divest from currency into um assets that are going to beat inflation and so that might be the stock market that might be uh property and real estate um it might be bitcoin it might be other assets it might be commodities um it might be whatever people try and speculate to beat that so they tend to have to hand over their money to the financial system which are the beneficiaries of all the money that's being created as debt and then they charge fees in order to beat um the inflation in this ginormous regulated ponzi scheme where they have to have more debt in order to pay off um the old creditors etc etc that you've heard from me many times so always remember that so with less money more and more people have to take on debt now this also drives wealth inequality because people can take on debt and they can do two things with it uh now remember the people that uh take on debt in order to consume goods i.e they just buy things end up on the wrong side of this wealth inequality um people that that use that in order to purchase assets that outperform inflation end up on the right side of this wealth inequality so it drives this ginormous wedge that drives people further and further and further in two directions and those that take on debt in order to consume i.e credit cards student debt then they end up with debt that they can't repay money being worth less and no asset to combat inflation so that drives people deeper and deeper and deeper into poverty um in countries that have you know very um you know a good debt markets as it were and countries that have access to these financial products end up in a country with a lot of wealth but on the wrong side of the world gap because they over leverage for encryption and it didn't purchase an asset that beat inflation so their purchasing power goes down and down and down and the way that they repackage that is they then start taking on more debt to cover their rent to cover their bills and they end up in a debt cycle that's irreversible unless they start figuring out how to save invest in assets to beat the system on the other side rich and wealthy people they get access to the lower and lower interest rates the bigger and the larger you are the closer you are to the zero percent interest rate and also this drives people into forcing them not to save because they pay negative interest rates which is the process of saying please do not save um and therefore take the money out of the bank and therefore put it into assets so those that purchased assets end up on the right side so this creates a speculative frenzy in stock markets real estate which is what we've been seeing um throughout this time the more and more money is being allocated to stock markets and real estate markets and even bitcoin in the crypto markets and because people are trying to be inflation so is the the competition for currency um is being driven into hard money like bitcoin um or stock markets or uh real estate to try and beat inflation get ahead of the curve and get on the right side of the wealth inequality gap um and so that's what you see right now but eventually um those debt markets in order to have more money they end up over leveraging and they end up taking those loans and moving them to those on the wrong side of the wealth inequality gap and then that leads to a 2007 2008 style event um and what we're seeing in china right now where um these debts are irrepayable and they are too big to fail and so guess what you have to replace that debt with more debt and that's exactly what will happen in this case um so china the government will come along most likely they will uh issue a central bank digital currency in order to repackage the debt um and take over the the company and just repackage it through financial engineering which will drive adoption to their central bank digital currency and so i've been forecasting and since the first time i started discussing um china and central bank digital currencies and forecasting this was in 2016 and through videos on my youtube channel and that you can see through the archives but that's my forecast of how this problem gets fixed that drives everything closer and closer to a larger and larger government there's a very large one in china because it's obviously run by the china communist party at the moment but also to follow the global effects happen that will happen on you know so-called capitalist or crony capitalist countries um that will then issue their central central bank digital currency in order to drive um more and more people into adoption of that central bank digital currency as a solution as banks start to be exposed to these events and rather than people losing their deposits they'll just say download this app um opt out of all your privacies opt out of all your freezer freedoms opt-in to compulsory vaccinations and then we'll give you um the money and uh that bank can go bust and you now have our central bank digital currency now the interesting thing is that is the de-leveraging of the debt-based economy it is moving to one one where the central banks are raging war on the banks and taking back the money creation process radical banking reform as i've talked about many times on my youtube channel but it drives more and more people into wealth inequality that they then need to opt in to the central bank digital currency and in opting into the central bank digital currency they tick the boxes to remove all their freedoms and we end up with um you know a gradual and slow movement towards 100 tax larger and larger government um and something that looks you know i'm 100 taxes on the extreme um but that's the inevitable consequence if you don't reform the way money is created and have competition with private car um currencies like bitcoin as well um it drives wealth inequality um and so that drives people into speculative mortgage which perpetuates the ponzi scheme and then central bank digital currencies uh becomes a solution now why then is there a crash in the bitcoin and crypto market well as i said bitcoin and crypto is competing for currency people are taking their fiat currency and they're putting it into assets so when there's a correction in real estate short term you see a sell-off of all assets and a movement into what they consider safety which is fear trash cash is trash um and so while many people think cash is king in reality cash is trash um but the drive out of assets in times of fear like the stock markets um real estate and then eventually the fundamentals kick in and so bitcoin is a solution to people that want to own their own money to people that want to spend their own money and one that has a fixed supply to combat the debt-based ponzi scheme so the rich and wealthy now they all know the institutions are all accumulating bitcoin at a very very fast rate and the average person that made some money out of bitcoin is saying oh i had those returns i need to lock that in right now i want to go out and buy and consume and so they end up selling their bitcoin um and the institutions which are so they sell their bitcoin on an exchange but the institutions buy it over the counter which means off exchange and so what you have is a as a correction in the price as all of the people that don't have purchasing power or see the long term vision or in for a get-rich-quick scheme sell their bitcoin and the institutions buy it over the counter and so you have this correcting in the price and that's what we have seen time and time again couple that with the market manipulators the market manipulators will look to accumulate bitcoin at cheaper and cheaper rates so they'll use any um environment of fud fear uncertainty and doubt in order to um you know use uh those bitcoins and manipulate the price um so that but they can't manipulate long term so traders end up you know either the 10 percent of traders make a bunch of money 90 percent of traders lose um and the investors end up um benefiting uh because they have a longer-term approach and so long-term approach um is exactly what i am uh what i have always shared with people because fundamentals do prevail and so what i've tried to share with you in this video is macro fundamental analysis of the markets because the news is going to take you micro in and if you go into the micro you end up fear uncertainty and doubt fomo fear of missing out buying at the very very top capitulating at the bottom trying to be a trader and getting on the exact same side as 90 of people in the market um my hope is that people that watch this video people that share this video and i'd really appreciate you liking i'm sharing retweeting i'd like as many people to see this as possible because i want to make sure that more and more people are financially literate as possible um and uh in in in light of what they're probably about to see um and so what will i be doing well i revealed it all in www.retime where i shared exactly how i'm investing during the great depression of the 2020s and i will be buying into the market and hoping that more and more people um which i know they will um will be uh fear uncertainty and doubt dumping assets uh creating opportunities to accumulate assets cheaper um and i i i have a theory um that the bitcoin and crypto markets fundamentally solve some of the biggest problems today and so therefore we'll be uh buying into that as will all the people that um have been following the retirement plan b um approach so you can get a free video series on retirementplan b.com where where i go through in four videos exactly um how i am doing that um so i'll be following that um exact strategy and the reason for that is fundamentally zoom out uh bitcoin's been in a 12-year bull market with market corrections based upon market manipulation fear uncertainty and doubt in between um but just zoom right out put up a if you if you have a chart change it to logarithmic so you can look out don't want to go too geeky sorry for the the terminology for those new um to these things but it helps you smooth out um the chart uh based upon that um and so really in the end you've got to remember that there are two fundamental ways in which markets are operating right now the traditional financial system is based upon a debt-based regulated ponzi scheme that drives wealth inequality by driving people into debt and those that get on the right side of those that accumulate assets with those debt and those who get on the wrong side of those that consume excessively with that debt then you have a market which is based upon equity and by equity i mean investing in things that generate a wealth effect upon having the money based upon savings and using smart reallocation of currency to monies like bitcoin um sound money hard money um and you um understanding getting yourself financially educated so you get on the right side of that what is the difference between and there has been a boom in bitcoin debt i've been investing in many of the companies that are providing uh bitcoin lending services um we at retirement plan b have launched our retirement plan uh product which allows people to compound um using bitcoin and crypto lending products as well um but here's the key difference the key difference with that in the traditional financial system is you use debt um and uh you use that debt in order to accumulate assets in the bitcoin system you build wealth and with that wealth you collateralize that wealth in order to borrow money and take on debt there's a key fundamental difference the problem is not debt itself the problem is money being created as debt because it's a ponzi scheme so if you have a wealth effect and you use that in order to um you know get on the right side of the financial markets risky you don't have to do that um but that is different and so bitcoin debt is all collateral wealth effect if you look at all the people that are wealthy they invested into bitcoin in the crypto markets that is they invested into bitcoin they invested into equity and companies through bank to the future for example and the company i co-founded and i'm the ceo of full disclosure um and then they use that wealth effect in order to sometimes just stay on the right side or leverage as well i don't leverage personally but those options there when you have a wealth effect because it can drive you into losing that wealth effect in the traditional markets it's all about take on debt money is created as debt and then you have to get on the right side of the world's largest regulated debt based ponzi scheme one is built upon collateral the other is built upon debt vastly different outcome and that's why i would like everybody if they can um to watch these videos subscribe to my channel i'll give more updates as things unfold together on the well the right side of what i believe to be one of the world's largest wealth distributions redistributions rather that is coming it's all based upon those being over leveraged and those actually um uh having wealth effect in the end um it's hard sound money that wins um and i believe digital hard sound money can solve other problems like owning your own money being able to spend your own money and the world's um fixed um fixed strongest asset bitcoin and so you expect corrections in the competition for currency uh fundamentals uh prevail in the end and so i'll try and give more updates if you like this video then please do share it like as many people to understand some of these uh things as uh the fear uncertainty and doubt and the news comes um on the evergrande situation and the 400 billion unwinding um you heard it here first i think it will be unwound with the issuance of a central bank digital currency um and i will be uh dollar cost averaging in um into the corrections um enjoying the bear markets the bear markets are my favorite time but i'd like it to be [Music] other people's favorite times because it caused a lot of destruction um for many people and unfortunately uh because people haven't got on the right side of these wealth inequalities um my job is to just try and share as much information to help people uh get at least on the right side i can't give you financial advice legal tax advice um but i can just share what i'll be doing and hopefully this information does it so if you do then please do like please do share hit subscribe and i'll make sure as this situation unfolds i'll give you the latest information um as it unfolds hit subscribe hit the bell symbol hit all and then youtube will notify you and it helps with the algorithms um by having as many likes and comments as well let me know what you'd like to see in future videos let me share what uh please do share what you'll be doing in the comments section under this video and uh always remember that we are in one of the most interesting and exciting times in financial history and i want you to be on the right side of that change peace

Channel: Simon Dixon

Views: 1,998

Rating: 4.9693484 out of 5

Keywords: Simon Dixon, BnkToTheFuture.com, Bank To The Future, Bitcoin, Cryptocurrency, Crypto, Banking and Finance, FinTech, Monetary Reform, Money, Satoshi Nakamoto, Blockchain, Digital Money, Economics, Wealth, Investors, investment, future, AMA, Ask me anything, Bitcoin OG, BF LIVE, Online Investment Platform, crypto companies, Retirement Plan B, Bitcoin pension, crypto currency

Id: me_d7vM8w-E

Length: 23min 11sec (1391 seconds)

Published: Wed Sep 22 2021