➡ Henry Paulson, the former US Treasury Secretary during the 2008 financial crash, has warned of a potential financial crisis and urged for a preparedness plan. Following his warning, the US Treasury bought back $15 billion of its own debt in a single operation, a significant increase from the usual $2 billion a week. Paulson’s warning and the Treasury’s actions suggest a potential financial crisis, but the exact timing is uncertain. It’s important to be prepared and understand the implications of these actions on the economy.
➡ The text discusses the potential economic crisis due to falling currency, inflation, and capital flight. It uses examples from the UK, Greece, and Argentina to illustrate the issue. The text also highlights the decrease in foreign investment in U.S. debt, particularly from China and Japan, and suggests that these investors are now buying gold instead. It concludes by warning of a major shift in the monetary regime, similar to when the U.S. left the gold standard in 1971.
➡ A company named Strategy, previously known as MicroStrategy, has become the largest holder of Bitcoin, owning almost 4% of the total supply. They funded this by selling their own stock and launching preferred stocks that offer an 11.5% yield, attracting investors who used to buy bonds. This shift of capital from traditional investments like bonds to Bitcoin signifies a change in the financial regime. The article suggests that individuals should consider how much of their assets can be printed (like dollars and bonds) versus those that can’t (like Bitcoin), and adjust their investments accordingly.
➡ This text discusses two financial plans: one proposed by Paulson to protect the system, and another that individuals can create to protect their own assets. The author suggests that understanding these plans puts you ahead of most investors. They encourage you to take action and not wait for the financial press, and to subscribe to their channel for more insights.

The man who ran the US treasury back in 2008 just told the country to prepare for the Break the Glass plan. Now, that’s the headline, but that’s not the real story. The real story is what the treasury did quietly just one hour later. I’m talking about $15 billion bought back in a single morning. Now, that same program was running at only about 2 billion a week right before that, about 18 months ago. And now the largest balance sheets on Earth are. They’re already starting to make moves based off of that. Now, if you don’t make a move quick, you can get left behind.

So in this video, I’m going to break it down. I’m going to show you exactly what hitting the wall looks like. I want to show you who stopped buying the government’s debt. I want to show you where the money is actually going, where it went. And I want to show you what the sharpest balance sheet in The S&P 500 is already doing, what they already did about it. So you can decide whether you want to do the same thing. You ready? Let’s go. All right, so we’re going to jump right in. We’re going to talk about what’s happening.

And this one is titled Break the Glass Now, Break the Glass by the man who ran the treasury back in 2008. Now, this is, I think, only the second time I’ve done a video where I’ve used my full video wall. Let me know what you think in the comments down below, if you like this video, and if so, we can do more of them. Okay, so who are we talking about? We’re talking about Hank. Good old Hank, or as we know him, Henry Paulson. Henry Paulson was the 74th Treasury Secretary, the US Treasury Secretary, and he ran the treasury all the way back in 2008 during the Great financial crash.

And if you remember the crash, we had to build the banking system, and he was the architect of that. He architected what was known as the TARP program, which was the bailout program. And the thing about good old Hank here is that he didn’t just write about this. He didn’t write about the Break the Glass playbook. He wrote it. He designed it. He wrote the playbook. So he was there when Lehman Brothers fell, triggered the whole collapse. And he wasn’t there watching. He. He was the guy in the room having the conversations to figure out what to do.

Now, the reason why we’re bringing up Hank Henry Paulson is because he was there in 2008. He’s seen the worst of the worst. He architected the fix. And so when he’s talking about potential crashes, he’s someone we should pay attention to. Now, he was recently on tv, he was on Bloomberg, on Wall street, and he said, we need an emergency. And this is where I got it. Break the glass plan. Break the glass. You know, it’s like, on the wall, like the emergency thing. You got to break the glass in the case of emergency and pull the lever.

We need to break the glass plan. When an emergency happens, we need to have a plan which is targeted and short term. So we need to know exactly what’s going to happen, have a plan in place. But here’s the. Here’s the piece on the shelf. So instead of 2008, where it was, like, reactionary, where they had to get together and figure out what to do, we want it on the shelf so it’s ready to go. Ready to go for what? On the shelf. Ready to go for what? When we hit the wall. Now hit the wall.

Doesn’t sound very good. Notice he didn’t say if it happens. He said when it happens, when we hit the wall. It’s a key piece there. Okay. And then when the interviewer, you know, kind of continued to push and probe, and they said, when, like, when are we going to hit the wall? Well, he said people say, you know, or ask, when are you going to hit the wall? Obviously, he says, obviously, I don’t know. It’s impossible to know. So it’s easy to see, like, the direction that we’re going and, you know, the inevitable turn that’s going to happen.

But it’s sometimes harder to understand the time of when that can happen. They said we’re going to have. It’s going to happen, but it’s impossible to know exactly when. But he said, when, when we hit it, not if. Not maybe when we hit it. It’s going to be vicious. Like hitting. Hitting a wall at 100 miles an hour. It’s vicious. So we have to prepare for that eventually. We have to prepare for that. It’s going to happen. That’s the man who was in the Lehman Brothers war room. He’s telling us that the next one’s going to be worse.

We didn’t prepare for it. Okay, but that’s just part of the news headline. What happened after that is what I want to dig into. And then what’s happened since. So what happened after that, about an hour later, after the interview ended, is that the US treasury started making moves, and then corporations started making moves. But the treasury, what’d they do? They went and bought back $15 billion of their own debt in one single operation. And I have this chart up here so you can see scale of this. All right, so we can see back Here, back in 2024, we get out of the way, 2024, it was running about 2 billion a week.

All right, so that’s about how much of their debt they’re buying back. Then we can see in April of last year, that got up to about 4 billion a week right here. All right, and then all of a sudden after he comes out and says that, all of a sudden he goes up to 15 billion. Not, not 4 billion a week. 15 billion in one operation. Seven and a half times bigger in 18 months. Now, programs that are actually technical housekeeping, they’re not supposed to scale like this. And the auction was three times oversubscribed, which means that holders offered 40 billion back.

The treasury is soaking up its own debt as fast as the market’s going to give it. Okay, so now I want to show you this, right? Because when Paulson says we hit the wall, wall, fine. What does that really mean though? What is hitting the wall? So you hear terms like the debt doom loop or the death debt spiral or hitting the wall, it’s a flywheel. But nobody ever explains to you what that means or what it actually looks like. So let’s fix that right now. Because once you see this mechanism, you’re going to see it everywhere.

All right, so every piece of debt, US debt, it gets hold at an auction, right? People come and bid for it. Who comes to the auction? Who bids? Well, we have foreign central banks, we have pension funds, banks, primary dealers, things like that. So they all show up and they start bidding on the debt. And the whole system of course, runs on them showing up to buy and then, and then buying. Now if enough of them don’t show up or enough of them don’t buy when they show up, then of course the auction fails. All right, so what happens is if an auction fails, there’s only one way to clear the market.

Because the government needs the money, right? To run in a deficit, we have to sell the debt. So if the auction fails, how do we clear the market? Well, yields have to spike. So you know, the government’s like, hey, we have $100 billion of 30 year debt at 4%. And they’re like, we don’t want 4%. Okay, how about four? Four and a quarter? Anybody? Four and a quarter? No, no, four quarter. Okay, four and a half. Four and a half. Anybody? Four? No. 4.75. How about five? Right. So they have to start raising the yield to get the buyers to show up and take that.

All right? But the problem is, is as yields spike, is that the government can’t afford that. They can’t afford to pay those elevated yields. The interest on the debt is too high. And so if that happens, then what happens down here? Well, then the Fed is going to have to come clear the market. The Fed is going to have to print the money in order to take that debt, take that existing debt off of it. All right? The interest bill alone is starting to run away from them, but the Fed’s going to solve that. But then what happens is when they print that money, we come over here, the cause brings us to the currency and the currency falls, right? The Feds, the central bank of last resort, they step in, they buy it, but the Fed doesn’t, of course, they don’t have the money laying around.

They print it, right? That’s the only tool they have. So when the Fred prints it, then the currency starts to fall, right? And that’s not like an option. They don’t choose that. It’s just arithmetic. That’s how it happens. Because more units of a thing divided by the same underlying economy equals less value per unit. And this is where it really starts to get, it starts to get vicious because when the currency starts to fall, it leads to inflation and capital flight, right? So now prices start running away. Money wants to start trying to go find a better home.

Real yields are staying negative at this point. And so then more, more buyers stay away even longer because of course they’re going to get liquidated on the debt. Which takes us back up to here to the next auction failing. This is the spiral and it starts going faster and faster and faster. And of course this is in theory, right? This has happened many, many times throughout history. Let me show you three examples real quick of countries that you might have lived in, you might have seen. So here we have the, the United Kingdom. This is September 2022.

Not that long ago, if you can remember back to that time, was that three, four years ago, Liz Truss announces the new mini budget. She’s going to get the UK back on track. And when that happened, she did a bunch of moves, but the, the guilt yields spiked up really fast. We saw them spike up in hours. When that happened, pension funds all of a sudden had these massive margin calls and they, they, they were facing these and it would have completely blown them up. But of course they didn’t blow up because the bank of England had to step in and buy the gilts.

They stepped in to buy the gilts to stop the cascade. You can see this gap right here. So all of a sudden it spiked up. We had this big gap and then they started coming back down. Now that led to Liz Truss resigning, right? She had to step out of the way. She was only there 45 days. She’s out of a job. And that was the mild version, that was the easy version. Let’s look at another one. Here we have Greece in 2010. From 2010 all the way to 2012, we have about a two year period.

Now during this two year period, we saw the 10 year yields come up over 30%, as a matter of fact, 38% peak. During that we saw, you know, bailouts, we saw austerity, we saw eventual haircuts for the bondholders. Right, we saw all that. Down here below we have Argentina, kind of the same thing. Nine sovereign defaults since independence. And we can see this holding a line and then spiking all the way up here. Nine sovereign defaults right here. During that time that that was happening, we saw the peso routinely losing 50% of its value in a single year.

Now, these are the harder versions, right? Those are three countries, the uk, Greece, Argentina. But it could be anywhere. It’s the same spiral. The question that Paulson is asking is whether we should have a break the glass plan. Should we have a plan to in place? Should we have a plan right now for the inevitability of this, right, while we still have time to write the plan, or should we deal with it after? And now the $15 billion buyback. Well, that’s the treasury quietly starting to do its own version of this. It’s the treasury already starting its own version of step four, buying back its own debt.

Why are they buying back their own debt? To keep the yields down, to keep the yields from spiraling out of control just like this. So they’re doing it in advance rather than doing it after, Right? That’s what you do right before you hit the wall, not after. That’s what you start pumping the brakes before you hit that wall. So here’s the thing. If Paulson’s right, if that, if that inevitable wall is real and we’re not just walking to it, we’re speed walking to it, running to it, there should be evidence somewhere. We should see the evidence that buyers are already leaving.

Well, let me show you the evidence. Here we have China. China is the largest foreign holder of U.S. debt. They’ve been the largest holder of U.S. foreign debt for two decades now. Now we can see their peak holdings were right here, $1.3 trillion back here in 2013. All right, now today we can see that’s kind of gone up and down, but you can see how it’s dwindling down. As a matter of fact, here we have it in the red and you can see it’s starting to sort of fall off a cliff. Here we are 2026 and this is now down to under $800 billion.

That is a 40% reduction in the single largest foreign holder of your government’s debt. So we can see this, this is the evidence. They’re walking away. They’re no longer buying that. They don’t want to be liquidated away. They don’t want to pay the yields, the rates for what they’re getting. And you don’t hear anybody on CNBC talking about this. We have Japan here. We have Japan. Japan has also been one of the biggest buyers of US national debt. And they’ve been a net seller for two straight years. And they’re not reducing exposure. You can see the peak here in 2015, about 34%.

And you can see this just falling off of a cliff all the way down here, 24% in 2026. All right? And when you zoom out, you can see that the foreign official ownership of the entire treasury market 10 years ago is 34% today, as I said, 24%. 10 points of structural demand gone out of the system. And here’s why. This goes back. This is the straw that broke the camel’s back I talk about quite often. Here’s why. February of 2022, remember that time the West, United States, the West, NATO, they froze Russia’s bank accounts. Three superpowers in the world with nuclear weapons, Russia being one of them, had their bank accounts seized.

That was the day that every central bank in the world, every central bank on earth realized they learned a new lesson. Safe doesn’t mean safe. Safe means safe as long as Washington approves of it. The whole world was put on notice that, shoot, if Russia can have their bank accounts seized, what hope do we have, right? They realize that U.S. treasuries are no longer a risk free asset, right? As a checking account, but with political preconditions. And once you see it that way, then you’re stuck. You no longer trust the system. Trust is very fragile when you, once you lose trust, you don’t get it back.

So here’s the thing. Where did those buyers go if, if, if China, if Japan, if they’re no longer buying US Treasuries, where do they go? Well, this chart shows right here, central bank gold purchases. This is where the buyers have gone. You can see 2020, 255 tons. And every year, 2021, 20, 2022, the year of course that the west froze Russia’s bank account. No, no surprise. We saw a massive buying and you can see that massive buying has continued. So all been going into US Treasuries. The original risk free asset has now been piling into gold, 1,136 tons in 2022.

And again that’s just continued every single year, three consecutive years, over a thousand tons each. This is a, what we call, this is what we call a rotation. All right, and now all this is being priced into the bond market. All right, Luke Gromin, I’ve had him on the show many times, I love his research. A friend of the show, he published this back in April. And what this shows is the SDR currencies. So these are current, these are countries that have their currencies in the IMF basket, special drawing rights. And you have Germany, Japan, uk, US and China down here.

Now what this shows is a period from 2021 end of the year to 2026. And at the time China had the highest 10 year sovereign yield of the five. US was here number four. But now all of a sudden we flip this. What we can see now is that China is now priced safer in the us. This is the market telling us they would rather pay, they would give China money for cheaper than they’d give it to the United States. Now for historical parallel here, let’s go back to another time. Let’s go back to August 15, 1971.

That’s that. That ring a bell? I talk about it all the time on this channel. President Richard Nixon, he took us off the gold standard. He closed the gold window. Now most people at the time, they didn’t notice what was going on, right? Not only did we sever the ties of the dollar and gold so we could start printing unlimited amounts of dollars, then we got wage, we got price controls because we had rapid inflation. And so they had to use wage and price controls to try to slow that inflation down. Because of that, here we are now, 55 years later.

We can see the dollar, August 15, 1971 was $35 an ounce. We can see the dollar measured in gold has lost 99% of its purchasing power, 99% of its purchasing power. Priced against gold in 55 years. And so what we’re seeing is the same pattern repeating. Major monetary regime shifts. It’s all changing. It’s buried under the noise of a war that nobody agreed to. But one key difference here is that in 1971, the US broke its promise to creditors. Right? It owed the gold. Right. France was sending their warships over to collect the gold, to repatriate it.

And he closed the gold mine. He said, creditors, you’re not getting the gold. Sorry, we’re done. But today, the creditors are breaking their promise to the U.S. that’s a difference. So the regime has already changed, but almost nobody’s naming it. But Paulson did. Paulson named it. He. And he said, we need to break. We need to break the glass plan in the financial press. They’re covering Iran. They’re not talking about this, but so now I’m going to cover it for you. Right. So if Paulson is asking Washington to prepare a plan, a break the glass plan, Right.

Well, we should be paying attention. And if Washington’s not, we see private businesses are doing it, and we might want to pay attention. There’s one group that didn’t wait for the warning. They’re not waiting for the plan. They’re already running the math. Right? And they’re already moving. So what we can see, last week, we can see one company quietly became the largest single holder of bitcoin on Earth. And I’m not talking about BlackRock, I’m not talking about a sovereign nation right here. A single corporate balance sheet passed blackrock. So we can see Strategy in orange. We can see blackrock in blue.

And we can see they now surpass the largest asset manager on Earth in buying bitcoin. All right, this is a signal that we should be paying attention to. Right? They took the top spot. Now, Strategy, Formerly it was MicroStrategy. They now have 815,000 Bitcoin. Amazing. That is 3.72% of the entire bitcoin supply that will ever exist. There will never be more than 21 million. They own 3.72%. One company, almost 4% of the entire supply of bitcoin, all sitting right on their balance sheet. Now, how did they fund this? This is where the story starts getting interesting.

You see, what they were doing originally is they were taking on debt, convertible debt in the beginning. Then they started selling their own stock into the market, ATM into the market. But then they started launching preferreds. Now, one of them is called Stretch strc. I’ve talked about it many times. On the channel. We’ll link to some of them down in the notes down below if you want to watch more videos to figure out what stretch is. But basically, stretch is sort of like having a bank account that pays you 11.5% yield. Michael Saylor says, who has a bank account? Everybody.

Who wants their bank account to pay 11.5%? Everybody. Now you understand the power of this. And so it’s a preferred stock, and they’re paying out yield. Yield that fixed income buyers want. Fixed income buyers used to buy bonds because they want yield. I’m talking about pension money, I’m talking about insurance money, I’m talking about sovereign allocator money. But they’re not buying the bonds, and the bonds are only paying 4, 4.5%. And they’re guaranteed to get liquidated on the bonds. But now I can buy about the same thing and make 11.5%. So follow what this actually means.

Strategy is taking the fixed income market, the largest market in the world, $350 trillion, about 145 of that is tradable securitized fixed income. So taking all the fixed income demand, which was the same pool of capital that was being used to buy Treasuries, and now they’re converting it into bitcoin on a corporate balance sheet. Now, the buyers who used to fund the US Government are now indirectly funding bitcoin accumulation. So what we see here is the cleanest expression of the regime change on the planet. One company, one instrument sitting at the exact point where capital used to flow into sovereign debt.

But now it doesn’t. So if we zoom out. Let’s just zoom out real fast. I got some more charts, but think about this for a second. Three of the largest sovereign balance sheets on earth. China, Saudi Arabia, India, they’re all rotating out of US debt and into gold. Over the last four years, the most aggressive corporate balance sheet in the s and P500 rotated out of dollars and into Bitcoin. Now, this is when Beijing, right, Ridia and Saylor, they’re all running the same math. The math I just showed you, the same math that Hank Paulson’s running.

And they all arrived at the same answer. The signal is cleaner than anything the financial press is ever going to put on. They’re ever going to tell you. And it comes down to one single question. It’s the treasurer question. Go away. It’s the treasurer question. Most retail investors think like stock pickers. What’s the best stock I should mo. I should buy and when should I sell it? Right they’re stock pickers. What goes up? How much will this asset be? How much will bitcoin be at the end of the quarter, in a month? But treasurers, they think in decades.

A treasurer asks exactly one question. How much of my balance sheet is denominated in an asset that my counterparty can’t print? And then how much isn’t? Russia found out the hard way that too much of their balance sheet was denominated. Asset that could just be taken away for printed. That’s the question the treasurer asks. Everything else is noise. Paulson is warning Washington, but the sovereign’s already answered. Saylor already answered. The question that’s left on the table right now for you to answer is whether the individual investor answers before or after the wall. That’s the question. So if you made it this far, good.

Here’s a, here’s the bet you’re actually being asked to take right now. Okay. It’s not that big of a bet, right? It’s not as big as you think. It’s not. Will bitcoin go up? It’s not. Will gold go up? Right. Those are stock picker questions. The treasure question is different. It’s two questions, actually. One, how much of what I own can be printed and how much of what I own can’t be printed? Printable, Unprintable. Printable, of course are dollars, US Treasuries, bonds, all of those are printable. The government can create more of those, right? Corporations can create more of those.

This is the stuff the Fed can create more of on a Tuesday afternoon. Unprintable is a short list. Unprintable are like commodities, right? So here we have gold, productive land, real businesses, commodities, scarce assets. And of course bitcoin down here, it’s a short list, right? These are the ones the sovereigns haven’t. They can’t print. They’re scarce and they haven’t fully figured out yet. But the sharpest, the sharpest corporate balance sheets right now have figured out this one is the most scarce. 21 million. There will never be more than that. Now gold, of course, is the 5,000 year answer.

It works. Central banks, as I showed you, are buying more gold than any time in history over the last four years. For that, for that reason. But bitcoin is the same answer. But bitcoin is built for the digital era. It’s the same fixed supply logic, but it’s portable across borders at the speed of light. It’s fixed at 21 million. It’s impossible to seize if you hold it correctly. It’s Impossible to freeze again if you hold it correctly. And so in an era where Russia found out that what they considered safe isn’t safe, safe being conditional based off of Washington’s approval.

That last part, the safe, it’s not a small thing when trust is lost. You want to make sure your assets are safe. Now, you don’t have to choose between them, right? Most people who actually do this, they won’t. They won’t choose. But the category is the same. The question is the same. And Bitcoin is the version of the answer that was engineered for what’s coming next. Now, whatever ratio you land on, for which of these you own printable versus unprintable, the ratio is your personal treasury doctrine. And here’s the positioning that you need to figure out.

You need to have a doctrine. You need to have a. An understanding of the assets that you bought and for what purpose. Like tools in a toolbox. Each asset is like a tool in the toolbox that’s bought and used for a specific purpose to build out a specific goal, right? So the assets aren’t just a collection of assets. They’re specifically purpose built to get me to where I want to go. All right? It’s a shift from a collection of assets to a doctrine. That’s exactly what strategy did, right? That’s what they’re doing. On the corporate side, it’s what Saudi Arabia and China and India did.

On the sovereign side, it’s the shift of a wealth operating system that I teach people how to build on this channel. But let’s go back to the two questions, the two questions that should be obvious. We’ll take them from the top. Who stopped buying Treasuries and where did the money go? As I said, the sovereigns, they chose gold. I showed you that three years running. Now, over a thousand tons each year, all accelerating. But the sharpest corporate balance sheet in The S&P 500 chose Bitcoin. 815,000 bitcoins and counting, almost 4% of all the entire bitcoin supply that will ever exist, all sitting on one corporate balance sheet.

But it’s the same question. It’s the same category, but there’s two different expressions of the same answer. Only one of them was engineered for the next 50 years, while the other was engineered for the last 5,000. But you get to choose both. Most people won’t choose either. Now, if you got this, if you got this far, you already know more than 95% of investors that are watching these headlines. They’re seeing Paulson say that we need to break the glass, but he’s not sure what that means. The break the glass plan that Paulson wants Washington to prepare for, it protects the system.

That’s Paulson’s plan. The system plan. The plan that you can prepare on your own that protects what’s yours. Those are the two different plans. Only one of them has anyone actually working on it. The system’s not working on that. He says we need to work on it. But people are working on this plan right now. You can work on this one right now. So don’t wait for the financial press to catch up, because they won’t. They’re always going to be behind. They report the news. If you want the weekly signal before the mainstream gets it, then hit that subscribe button on this channel right now so you’ll be notified when I put new videos out.

Let’s keep watching this together. And that’s what I got. As I always say, to your success, I’m out.
[tr:tra].

See more of Mark Moss on their Public Channel and the MPN Mark Moss channel.