➡ Banks like JP Morgan and Bank of America are making bets on whether people will pay their mortgages or not, turning a $300,000 mortgage into a $30 million bet. They don’t actually have the money for these bets, they’re just creating credit out of thin air and using it as an asset on their balance sheet. If someone defaults on their mortgage, instead of paying up, they just make more bets. This system is like a casino where the gamblers are given infinite credit and the chips are just being created out of thin air. The system could crash if everyone tries to cash out at once or if the workers who are paid in real money quit because they’re not being paid.

➡ The text discusses the risky practices of banks, such as giving out NINJA loans (No Income, No Job) and making large bets on various events, including interest rates and weather events. It also mentions the potential instability of the economy and the value of gold as a safer asset. The text suggests that the ultra-rich might be starting to invest in gold due to uncertainty about the future of the economy. The text also discusses the possibility of a gold crash, which it suggests would only be possible if a large amount of gold was suddenly discovered.

➡ The text discusses the impact of technology and social changes on fertility rates, suggesting that increased screen time and less real-world interaction could lead to a decline in population. It also delves into the potential negative effects of technology and debt on society, arguing that the current system is unsustainable and could lead to a fall in living standards. However, the author hopes for a positive outcome, where society can rebuild on a more solid foundation after a potential crash. The text also explains the concept of credit chains and how they function in the economy, suggesting that the current system is flawed and could lead to economic instability.

➡ The text discusses the benefits of buying from local farmers instead of relying on large corporations like Walmart. It suggests that local farmers offer a variety of better tasting, ripe tomatoes compared to the mass-produced ones from Walmart. The text also discusses the potential collapse of large corporations and the return to smaller businesses, leading to more competition and innovation. It ends by predicting a prosperous future where people are paid honest wages and land can be bought cheaply for farming.

➡ The speaker discusses the issues with the current insurance and legal system, highlighting how it’s being exploited and causing problems for those in genuine need. They also express concern about the economic future, suggesting that a return to domestic production and entrepreneurship could be beneficial. However, they warn that those nearing retirement without investments in stable assets like gold and silver may face difficulties. The speaker concludes by predicting a challenging future, but believes those with talent and a will to live will thrive.

Lets say you have a pool of 50 million in subprime loans. How much money could be out there betting on it in your synthetic CEOs and swaps right now, tonight? Let’s see, $50 million. What? Hello, handsome. Might I procure your services? What do I have to do? Oh, nothing sordid, I assure you. So simply vomit on me ever so gently while I humiliate a pheasant. Hey guys, Ralph here from the. Wait, I didn’t start recording yet, did I? Yes, you did. Yeah. Did. Yeah. Hey guys, Raf here from the Endgame Investor. And it’s this month’s edition of the Bitter Endgame draft.

I got Phil Low on the line. We’re going to talk about OTC derivatives. We’re going to talk about why it makes sense to approach the end game positively. Why we should not expect the human race to be annihilated. That’s not going to happen. And I don’t even think there’s going to be a great die off beyond what’s already happening with fertility rates because people aren’t reproducing. So I think the great die off is already happening in terms of humans not reproducing and not meeting subsistence, not subsistence level, replacement level. That might be a good thing for the planet.

I’m not supporting it, but I don’t think the end game is going to lead to a mass extinction event other than maybe huge technological companies like Apple and Microsoft and other and other conglomerates that have taken over the planet. So I think we’re headed for a better world after this, not a worse world. And Phil has his own take on these things. Then we’re going to go into a bonus topic of which I don’t even know what we’re going to talk about. But first, Phil, I just wanted to ask you, how do you feel now that silver looks to be on a serious breakout? Is your life any different? Do you have feelings of euphoria or that you’re floating or pet or you know, past life experiences? Anything like that? Acid flashbacks, whatever.

The occasional acid flashback, nervous excitement. I’m definitely feeling like, okay, needing to make sure we have all the ducks in the row. But I, I mean, I’ve had three years to get my ducks in a row. But it’s like, it’s sort of like, well, you know, how much more do we want to accumulate? Any more silver? Where do we want to vault it? You know, all this, all this kind of stuff. But there’s nothing that’s like. I mean, I’ve. I’VE been chatting with you for three years now. So it’s not like this is a surprise. But I nervously and nervously excited and optimistic.

Also, the good news about the spikes is that it will encourage more normies to participate because they’re going to say, well, you know, I bought bitcoin when it was a hundred thousand and now it’s 105,000. But I could have spiked bought silver 32, announced 38. So, you know, simple math. I can, I can, you know, silver’s the more exciting prospect as that happens more and more. That would be good. Good for everybody. Yeah, the, the most annoying thing about bitcoin is that all the bitcoiners really had to say to us is we just bought bitcoin and you know, we’re rich.

Like, what are you people talking about? And right now they’re correct and there’s nothing I can really do about it. And I don’t really want to laugh at them in point and like, go hat like that line from what is it Dumb and Dumber where they’re laughing at the guy after he eats the, the hot sauce and he has an ulcer and he’s on the floor. That’s. That’s, that was. Yeah, that’s what I was thinking. I’ll put that in. That’s. That’s going to be us when they’re on the floor. And I don’t want to be pointing and laughing, but I also.

You were in bitcoin, dude. What do you want from me? I fell into a bitcoin rabbit hole on Twitter arguing with a guy and just. It was the standard. Like, bitcoin’s absorbing all value. The future is bitcoin. Gold was money, but now bitcoin is money. And it’s. I just left him with the point. I said, anyone who’s following down this because he’s pumping it up, he’s telling everybody to get into bitcoin. I said, anyone who’s following you down this is going to end up cursing your name. So, so I would be very careful, like, who you encourage to do this stuff with.

Well, yeah, cursing. Cursing your name would be in an event where they still have food to eat, but if they don’t, then it’ll be worse than cursing your name. It could be eating you attacks. But. So I just had this thought on bitcoin. Then we’ll start with the topics, like $119,000. Now. Okay, so let’s. We know that every crevice of the global economy is stuffed with debt upon debt upon Debt, several layers of it. So the question is how much debt is involved in the price of Bitcoin at $120,000. Who. It’s all on mar. So much margin in the bitcoin sphere.

Like what’s his strategy? Michael Sailor, you know him, you know he’s borrowing. They’re all, and there’s several companies doing. Now they’re, they’re borrowing, you know to go buy bitcoin which is of course pumping up bitcoin. But the second that, the second that margin they get margin called it’s going to topple over. Yeah. So what I’m, I don’t know what bitcoin is going to do. I did call the top in gold terms in 2021. So far that has held. I could be wrong about that. Who knows. But the, the basic point is that once, once debts are called in because there’s a dollar crunch, it’s, that’s going to be.

The bitcoin is not going to survive that. Go. Even gold will get hurt temporarily, but bitcoin will get, will get slaughtered by it. Yes, gold will go down maybe 20, maybe even 30% very briefly but then once the printing starts, once the printing starts after that then you’re going to have gold just going crazy. And bitcoin may be recovering very slightly. Yeah, that’s what I see happening. So we’ll, we’ll see if I’m right. I, I really think I am. I, I don’t think the nature of economics has suddenly changed because of the advent of some shared Excel spreadsheet that people are like oh my God, this is going to change.

It’s not. Okay. Anyway, you wanted to talk about OTC derivatives. What do you mean? What do you want to talk about? Oh sure. So this, I just did a video on it two, two videos ago was the, that’s sort of the towering. Because we always talk about extras pyramid and you know, you know you and me are always talking about the bottom two or three levels. We have gold and then you have the paper money or the paper credit derivatives and then you have the bonds and we’re always talking about that. And I said well what about the very tippy top, you know, the very height of the pyramid.

What’s going on up there? Why don’t we talk about it? What does it look like? And so I started investigating what OTC derivatives. There’s two extra’s original pyramid. There’s unsecured government liabilities which is like Social Security and then the other one which is much, much, much larger. Are the OTC derivatives. And you can see why the unfunded government liabilities are up at the tippy top, because they’re just, they’re promising things they have no intention of ever delivering. It’s not even funded. There’s no plan to fund it. It’s just pay as you go. You know, as each Congress comes in, they fund it.

Just, they fund the next stage, the next rung of the Ponzi ladder. Just enough to keep the Ponzi going without ever having a plan to actually pay off Social Security in any real way, shape, or form. And this is all going to be done with inflated money anyway. So you can, you can see where that goes. But OCT derivatives are a private function. And what is going on? And when I investigated, I realized it was basically just sports betting for huge financial institutions. So, first off, it’s on. There’s no example of an OTC derivative. Sure. Yes, exactly right.

There’s no clearinghouse for this, so it doesn’t go through any sort of central clearinghouse. So nobody really knows how big they are. But we do know the, the estimates range between $750 trillion and $1,000,000,000,000 and maybe even a little bit higher, depending on, you know, who wants to take a crack at calculating it. What is, what does that mean? What does that mean? There’s, where, what are these quadrillion dollars? Does that mean the. No. What does it mean? So here’s, here’s how it works. Let me explain that, and then I’ll explain how it works. So JP Morgan will call bank of America and they’ll say, I, I, I don’t think Phil can pay his mortgage.

And j. And bank of America said, no, no, no, he’ll definitely, he definitely pay his mortgage. And J.P. morgan, no, no, he’s not going to make it. Bank of America. Oh, yep, absolutely, we’ll make it. So JP Morgan says, well, I’ll tell you what, $30 million says Phil’s not gonna pay his mortgage. And JP bank of America says, you are on, sir. Now, JP Morgan does not own my mortgage, and neither does bank of America. They’re just, they’re just looking at me and they’re making a sports bet on whether I’m going to pay my mortgage or not.

And you’ll notice my mortgage is not $30 million. My mortgage is, you know, $300,000. So they’ve turned, they’ve turned a $300,000 market, you know, problem or, you know, something that would affect the market to an extent of $300,000. And they turned it into a $30,300,000 event if I do or do not pay my mortgage. Now, what makes this even crazier, this is they don’t have, Neither one of them has the money. This is all done on margin. So they say, hey, so, so, you know, somebody has the, somebody has the theoretical money to lend. If one of them loses the bet, which one of them will? Where does that money come from? No, no, it’s, it’s, it’s, it’s gen.

It’s ginned up. They’re banks, okay? It’s, it’s being ginned up out of thin air. So they just borrow from each other and they, they state the loan as the asset on their balance sheet. That’s the real point. That’s, that’s actually more important than the bet itself is the actual generation of the credit. Because when you see, when you see something, and then, then they’ll do the same. So, you know, rock my neighbor. We can use you. They’ll make the exact opposite bet on my neighbor’s house. Now that one’s called CDO squared. CDO of a cdo. Right? And then their CDL is made up of the opposite side of the bed you made with their swaps.

We call them synthetic CDOs. What did you say? Synthetic CDO videos. That is crazy. It’s not. It’s awesome. Like, my neighbor lives a very similar life to me. You know, similar chance of default, you know, similar life structure. Right. But they’ll take the exact opposite position on that one just to hedge their own bet. Yeah, they’ll hedge. Yeah, they’ll, they’ll flip the bet. So like bank of America will be on the negative side and JP Morgan will be on the positive side and they’ll take this giant bet again. And so it’s like, why are they doing this? And the answer that I coming up with is that they’re trying to generate, they’re trying to generate credit to put as assets on their balance sheet.

So when you see something like State Street, State street Financial says $27 trillion under management. Most of it is this bullshit. These bullshit sports bets that they’re just, they’re just ginning up out of thin air and they’re writing as the asset. Now they, they of course want to. It’s better to win the bet than lose the bet. That’s absolutely true. But more important than that still is that is the creation of the credit. Okay, wait, hold on. Do I understand this correctly? So let’s say JP Morgan and Bank of America are betting. JP Morgan bets that you’ll pay your mortgage.

Bank of America pays it, you won’t. And then they flip it and your, your neighbor. Bank of America bets that they, that your neighbor will. And then JP Morgan bets that your neighbor won’t. So they have equal. Let’s say each bet is worth $30 million. So that’s $60 million under management for both banks. Yeah, exactly, exactly. Okay, so then, then hold on, just lead me through this. What happens when either, when you default and your neighbor does not default, they, whoever makes the loan, let’s say, let’s say both of them. Let’s say both you and your neighbor default.

Default. Yeah, yeah. What happens then? What happens then is that theoretically they would call like the winner would call the loser and say, you owe me $30 million. Okay. What they. What in reality happens is they just double down on more bets. So instead of pay instead of. Because J. J.P. morgan knows there’s not, there’s not $1,000,000,000,000 in the system. So if they start, if they start calling in all these bets, they’re gonna. The system’s going to crash. So bank. Let’s say bank of America lost both those bets. They’ll just call and say, hey, you know what? I think Phil’s not going to pay his car payments.

I’ll bet you $50 billion on the car payment. Right? They just need to double or nothing. Double or nothing. Double. Yeah, exactly. They’re constantly double or nothing. This is the analogy I use. So if you. The analogy I used in my video was if you imagine a casino, right? And imagine this casino was extending infinite credit to the gamblers in the casino. So then you have a working class guy come in and he’ll, you know, let’s say he gets in the hole a little bit. He goes, can I borrow some more and get out of the hole.

Absolutely, sir. Okay, so now, but now he really like, let’s say, loses $100,000, 200,000. He’s not going to pay that off. So he goes back and he says, can I borrow $200,000 to try and double nothing. Absolutely, sir. Right. He’s never going to leave the table. He will never leave. Because if he as he keeps losing, right? He’s just going to get more and more of the hole. He’s just going to keep doubling down. The winners will likewise never leave. Because let’s say I’ve won $200,000. I could win $400,000. So I’ll just keep playing, right? And then $500,000, 600.

A million dollars. I’ve won a million. Well, but I’m on a streak. I might as well play for 2 million. Right? And then suddenly, oh, our situation’s reverse. Now I’m in the hole and he’s up ahead. Well, we’ll just keep going, right? These degenerate gamblers, they’re degenerate gamblers. They’ll never leave. Not to mention if they, if they, the, the casino is generating the, the winning chips off of the losers coming back for more loans. There’s no actual cash, there’s no ability to cash out. So the casino is sort of in a bind. In fact, they’re very not sort of.

They’re very much in a bind. Okay, so wait, hold on. The, the loser says, I’m down 2,200 thousand. Give me $200,000 in chips. They print up or they create 200,000 right. In chips. Yeah. And then there’s more chips. Okay, so. So this actually gives me a new perspective on what the end game is from this angle. It’s one I haven’t thought of. I thought of different derivatives of it, but maybe this is better. If the, if the banks are betting each other and expanding their chip supply by taking the outsides of bets with each other and then they inflate their assets under management or whatever it is they’re doing, then the end game is when all the gamblers notice that they don’t have anything to consume, and then they take all their chips and all try to cash out at the same time and buy whatever they can because they realize that the chips aren’t worth anything anymore.

Well, I actually think, I think the crash will happen further down. So in the, in the casino analogy, the, the cocktail waitress and the, the card, the card shuffler guy and the guy who sweeps the floors, they’re demanding to be paid in dollars, and casino is not actually generating dollars, it’s just generating chips. So all of them are going to walk out. They’re just going to quit one day and say, well, you’re not paying me, so I’m not going to work for you. And then someone’s going to cut the power to the casino. And then the people that were gambling are just going to awkwardly look around in the dark at each other and then just stand up and shuffle out, because I don’t.

So for the crash to happen at the top in the OTC derivatives market, JP Morgan or somebody like that is going to have to call in their chips and they know that will destroy the system. So they’re not going to do it because they just like, they just like having those, those assets under management. That’s purely what OTC derivatives are there for, is to have assets under management. So they could say, we’re a very big important bank, we have all this credit generated and you know, all these people, Earth’s money, so we can use this to generate even more credit further down the line.

So really, I don’t, I don’t think the crash is going to be up there. So, so really what you’re saying is that, or that could be one component of the crash, obviously will be. Yes, and then it’ll, it’ll affect the rest of the pyramid. But exactly which layers of the pyramid go first and what order, Nobody knows. But what you’re. When they inflate the assets under management, what benefit do they have besides marketing? Do they, do they collect more fees because of AUM or. And the other, the other comment I was going to make is that really there is no banking system.

There’s one bank and they, and the one bank directs. Directs how every other bank places pretend bets with the other little banks that they’re all connected to. And so it’s just one giant pyramid builder trying to level this side and balance this side and keep everything steady and just making it bigger and bigger and bigger. And then when it falls, everybody goes away and there is no winner except for the actual banks. The actual banks are the people that have money, and those are again, the stackers and whoever has gold and silver. Yeah, the, the benefit is the same reason they give out NINJA loans in like 2007.

It’s the exact same thing. They’re just trying to get, they need to get loans on their, on their books. And so they’re just making stupid sports bets with each other to, to, to achieve that function. Wait, what are NINJA loans? No income, no job. Oh, never heard of a NINJA loan? No. Yeah, they were, they were like, you could, you could get a house loan with, with no income, no job in like 2007. Well, I, I know, I knew about that. I just didn’t know it was called NINJA loans. But yeah. Ah, yeah, yeah, yeah. So it’s the same thing.

I mean, it’s just, it’s. They just need to get assets on their books. So that’s the entire, that’s really. The, the long and the short of it is just what OTCs are. And I mean, people are like, well, we should regulate them. I mean, the regulation is not the problem. The problem is that the money’s Fake. So I don’t think, I don’t even think OTC derivatives are going to exist on a gold standard or at least not, not in, not the way they exist now. So it’s like poly market for banks. Yeah, exactly right. Exactly right.

They bet on. There’s no, there’s nothing they can’t bet on. They’ll bet on interest rates going up, they’ll bet on interest rates going down. They’ll bet on weather events, they’ll bet on, you know, whatever. It’s all under the guy. It’s under the guise of hedging. But the trouble is they can, there’s no, there’s no limit on the underlying asset that affects their bet. So like I said, my house is, you know, I have a $300,000 mortgage. They could have a $400 million bet on my house and I wouldn’t know because it’s just a bet between two, It’s a bet between two independent parties on these events happening.

Right? This is, there’s a scene like this in the Big Short when they’re at, I think they’re at Benihana’s or whatever it is. The, some kind of. They’re cooking dinner on the table and chopping up the seafood. And then he’s like. And then the, the Steve Carell character, what was his name in the movie? I don’t remember. But he’s like, how much, how much bets are being placed in this real, in this aspect of the real estate market right now, tonight? And the guy, the Asian guy is like, well, you know, could be, you know, whatever billion dollars.

And like he freaks out because he finally understands what the hell’s going on. So that’s exactly what’s going on. Except now it’s not real estate, it’s everything. Let’s say you have a pool of 50 million in subprime loans. How much money could be out there betting on it in your synthetic CEOs and swaps right now, tonight, see, $50 million. What? Yeah, and it’s shadow, it’s, you know, it’s shadowy because there’s no clearinghouse. So like we have no idea because there’s nothing know it’s just independent bank stuff. We can only, we can only guesstimate. And I asked, you know, I asked Rock what the estimate estimate range was and it said 730 trillion to 1,000,000,000,000.

Actually, I just had an interesting conversation with an old friend of mine who was never an anti stacker. He always understood that. He doesn’t understand gold is money. Or anything like that. But he understands that gold is probably safer than any other asset when the civilizations collapse. He, he gets that. He’s like a, a Roman historian kind of guy. So he told me the story of a friend of his who’s like an endodontist and he owns all these clinics in California and he got so rich that he was able to stack stockpile about 1% of the market cap of Nvidia.

So and, and, and at that point he’s like, this is very recently he just suddenly had this realization. He’s like, I’m way too overexposed here and I should really get out. And then he just ended up buying a bunch of gold with a lot of his profits because he doesn’t see how anything could get any more expensive than it already is. And he, he had 1% of Nvidia. Yeah. That’s an enormous amount of wealth. Yes. What is it, like $10 billion? Yeah, yeah. $100 million, something like that. That’s an enormous amount. Well, good for, good for him.

And good for him for plowing into gold at the right time. There you go. Yeah. So it could be that the ultra rich are starting to get so dizzy on their own dollar denominated wealth that they don’t really know what to do. And they’re like, well, I should probably just get out. But I don’t want dollars because I, this is. If I had $100 billion. I mean how, how rich is Elon Musk? Like 50, 60 billion, whatever he has. If, if I had that much money and everything was super expensive and I knew the dollar was going to fall and I didn’t necessarily know that gold and silver were money.

I’d probably just buy a whole bunch of real stuff. And then with ever what I, what whatever I didn’t know and whatever I didn’t want to maintain, I just hold gold because I know I could. You just sit there and I don’t, I don’t know what it’s going to be worth, you know, 10 years from now, but I know it’ll probably be fine. So that’s what I would do. Yeah. As more and more people do that, you know, we should, we should see the market market reacting to that movement. Yeah. Like we, we hear of real estate crashes, we hear of savings and loan crashes, commodities crashes, oil crashes.

Has there ever been a gold crash? I mean, I don’t think it’s possible. Yeah, I don’t think it’s possible. The only way, the only way there’d be a gold crash would Be if you dug up a lot of gold in a short period of time in a certain area and then you have a very inflationary period like the California gold asteroid. If a gold asteroid were to hit. Yeah, yeah. But even then it would just, it would just be temporary until the gold spread out and it would be mostly local. It would be mostly relegated to the area where the asteroid hit in the immediate surroundings.

Yeah. Like in, in, in 1847 or 1849 in California, like in San Francisco. Like a, a breakfast at a hotel cost like a nugget of gold or something. It would buy you like a team of horses back in New York, you know. But there was just so much gold in that one area that couldn’t get out that it was just like, you know, like I said, a breakfast in a hotel was like a nugget of gold. Something some degenerate amount. Okay, so this has happened before just in different circumstances. But it’s the same concept. Yeah. And localized.

Yeah. Well, someone, a user was just asking me, I just got a viewer question. He said if there’s a mass die off, won’t prices go up because there’s more, there’s the same amount of gold and there’s less people to use it. I said yes, ceteris paribus. If there, if there’s, I don’t think there’s gonna be a mass die off. People don’t worry. If there is a mass die off and there’s like way less people on earth and there’s same amount of gold that was sitting around, their prices will go up in gold terms. However, people will also use, they’ll find non monetary uses for gold.

For example, in the old days people would paint their religious buildings, they’d paint the roofs in gold or they’d build a big religious icon in gold, the Golden Calf for example. They stopped doing that because it got really expensive. And also, you know, like women will just wear, women everyday, women will just wear gold tiaras. You know, it’ll just be like a thing you do. I’m going to put on a gold tiara and walk around with it. Just because if, if there is that much gold walking, you know, lying around, people will just find decorative things to do with it.

But it wouldn’t be, it wouldn’t be the end of the world. So as we, maybe it was. Everyone died off. Yeah. Okay. So as we transition, I had this idea as we transition to the second topic of a positive end game outlook which we have discussed before. So let me put it this way. Let Me turn the tables, so to speak. I think if we’re in a world where the end game does not happen for another 10, 20, 30 years, I think that would lead to a mass die off. So it’s the end game that’s going to stop the mass die off.

And how, how so? I mean I talk, we talked for a minute about the fertility rate. Entire countries just non breeding themselves out of existence like North Korea and Japan. It’s getting worse and I was listening. My father watches Fox News a lot. It annoys me but I hear snippets of things that are, you know, a little bit interesting. So what’s that show with that obnoxious guy who’s like a comedian late night and he has the other comedian. It’s like this right wing sort of stand up comedy show or talk show whatever it was. He was talking about how young people don’t have house parties anymore.

They don’t just, you know, go to somebody’s house for a party in high school and drink some beers, have a few drinks and like, you know, get drunk a little bit and just have a good time. And there’s problems with those things too. I’m not saying they’re completely great but just to have kids hang out, teenagers hang out is very important. Yeah. So they’re not. And, and they’re not doing it anymore. What are they doing? Staying on their screens, talking to each other on WhatsApp or whatever. Just staying in social media without doing anything real in world.

Not meeting each other as much. There’s a lot of more incels or your involuntary, involuntary celibates. Which teenagers can get violent like that. And now that we have AI, which we haven’t even seen the full effects of, we have teenagers, even children forming relationships with these artificial intelligence bots. And they’re getting their emotional fulfillment from that. So there’s going to be the, the fertility rate going to drop like a stone even from where it is now. Yeah. If we don’t get this under control, there’s go technology is going to, is going to unbreed us out of existence if it doesn’t stop.

We’ll just be like what’s this? He doesn’t bought from Futurama, right? Exactly. He doesn’t buy from Futurama. Hello handsome. Might I procure your services? What do I have to do? Oh, nothing sorted, I assure you. Simply vomit on me ever so gently while I humiliate a pheasant. Underneath the structure of all these, all this technology are huge capital centers that cannot be supported without huge amounts of debt. So the end game I hope is going to end this, this technological destruction that we are leading ourselves into and lead to yes, a temporary fall in human standards of living, but we’ll be able to rebuild ourselves on much sounder footing.

I want to make a much more positive case for the end game or post in game. I, I, the, the, the way I described it in my video was it’s kind of like an event horizon. We can see, we can see the end game approaching. It’s just the way we can see the outside of the black hole, right? We can see the matter spinning around it, but we can’t see inside the actual crash and we can’t see the other side. We can only hypothesize based on experience and based, and using logic as well. So many, many user, many people in the space are sort of doom pilling.

They’re saying, you know, that the. Because yesterday, because today is worse than yesterday, tomorrow will be worse than today. So the powers that be are going to use the crash to institute totalitarianism. They’re all going to put us on a UBI and it’s going to be the CBDC UBI and all, you know, all the worst things you can possibly imagine. I think you’re with me. And that this will be a very cathartic event that will, the parasite will have to drop off the host. Fry, where’s your brain slug? Poor little guys starve to death. Because the parasite is the Federal Reserve and is, is the money printing system.

So if the, if the parasite drops off the host then will be free of it and then we can rebuild in a much more, much better way. And what does this look like? Is as you said, the system and as we talked about with the OTC derivatives, the system demands the debt grow at an exponential rate. That’s just a function of the Ponzi scheme is that the debt must grow at an exponential rate. It doesn’t really care how the debt is generated or what the debt is spent on, so so long as that the debt is generated.

And one side effect of this is that corporations have reached ungodly sizes, just enormous proportions, far, far, far larger than they would naturally be on an honest monetary system. And the way the credit, so the way credit works for the viewer. I know, you know Rafi, but for the viewer, the way a credit chain works is if I go to Rafi and say, hey Rafi, let’s say Rafi runs a bottle bar. And I go to, I go to Rafi and I’M a farmer and I say, hey Rafi, I’m. My crops are going to come in next month and I can pay you then.

Let me have a beer now and I’ll start up, I’ll run up a tab. Let me run up a tab at your bar now. And when my crops come in, I will, I’ll pay you silver at that time. I’ll pay you actual money. You know, I’ll sell my crops, I’ll get silver, I’ll come pay you. And then. So Rafi agrees to take my credit. And then Rafi goes to a blacksmith for a hammer. He says, hey blacksmith, I need a hammer to repair my bar. I can pay you in a month when Phil’s crops come in and he’s going to pay me silver and then I’ll come pay you silver.

And the blacksmith says, sure, you know, I trust you, I trust Phil, you, we all in this village together. I know you, you know, he’s my cousin in law or something like that. No problem. I’ll make the hammer for you now. And he gives it to you, right? This credit depends upon me actually getting this crops in, getting the silver and giving it to you, right? So that you could pay off further down the line. If I fail to deliver, that credit chain collapses. Or if you fail to deliver right now in the Middle Ages, that the credit didn’t really extend much further than that.

That was most of a credit chain. But in the modern world, particularly when banks were developed, the credit chains got formalized and got much bigger. Now that’s, that’s, that’s totally fine as long as everyone’s being honest. The problem is the Federal Reserve. The point of that credit chain is that money actually has to move at some point. Money. I have to get my hands on some money and give you money and then you give the guy further down money. That’s how the credit chain gets closed out, completes its credit life cycle. The Federal Reserve is trying to avoid the money payout simply by stretching the credit to infinity.

It just says if we can stretch the credit long and far enough, we’ll never actually have to pay out the money. And because the, because the credit is getting stretched out so far, the enormous amounts of credit are being generated. So Walmart, I used Walmart as an example in my video. Walmart buys tomatoes by the hundred million, right? They don’t, they don’t deal in small numbers. They, they call up Monsanto, they say we need 100 million tomatoes in six months. And they pay for that with credit, right? They’re you know, maybe they pay for it now.

Maybe they pan delivery some, some sort of deal where they’re going to pay for it even if they pay cash. Cash is credit crash is credit as well. Right, exactly, exactly, exactly. And they couldn’t. They, it would be the, the economy of scale is purely a derivative of the giant amount of credit. If they had to pay in gold and silver, it would be unfeasible to operate on a scale that large. They wouldn’t be able to do it. They can’t show up with, with several armored cars worth of gold bullion. I mean, I guess technically they could, but the efficiency is gone.

Right. The efficiency of scale comes from being able to order 100 million tomatoes and go, boop. And transfer the credit over. Right, I’m going to pay you. Boop. There goes. Right? That’s where the efficiency is generated. Well, you could, you could have, you could have Walmart pushing a button and transferring title to gold through a stablecoin or whatever to the farmer. 100 million tomatoes in gold. I mean that. What about with an honest credit derivative possibly? I don’t think the credit chains will extend that far in an honest gold standard. Let me get, let me get it into, I’ll get into that in a second.

So, so Walmart’s. Walmart can’t generate that amount of credit if they have to actually deliver money. Even though I’m honest credit derivative. I don’t think the scale, I think the scale is far too large. But now the, now the viewer is sitting there, well, but I want tomatoes. I like tomatoes. How are we going to, how am I going to have tomatoes if Walmart can’t generate them? The local, you’ll have a local grower who will grow tomatoes. And if the credit chain is really small, it’ll be a local farmer and you’ll go to that local farmer or a market, right.

And you’ll buy a tomato directly from him, either with honest credit or with gold and silver itself. You know, silver itself. And you know that the positive, the positive impact of that would be that each local farmer would grow different types of tomatoes with different, with different methods and they taste different. And you could pick the one that you like instead of relying on Walmart for the same hundred million tomatoes that don’t differ the monoculture. Yeah. And you know what else Walmart does? They, they, they pick that they, because they have to generate, they become 100 million tomatoes.

They pick them when they’re green and put them on the trucks. That’s why they taste so disgusting in that, you know, the, the, you know, like a tomato falls off the back of the truck and it’ll just like bounce down the road. It won’t even splat, you know, because they’re so unripe when they pick them. So yeah, you’ll get, you’ll, you’ll have a local grower, it’ll be a riper tomato, a much more delicious taste tomato. And there’ll be 10 different varieties you can choose from. You don’t have to rely on Walmart’s 100 million dollar tomato chain.

But why can’t that, why can’t the credit chains, why can’t the credit get that big under a gold center? What stops it? The money movements. The money moves fast. Some, at some point somebody’s like, well, the money has to move. And even, even in a bank, the title to the money has to move. Yeah, yeah, the title. Even, even within a bank. Right, even within a bank. Like if, if I owe you money and we both have the same bank or if banks that talk to each other, they just, they, you know, they take the sticky note with my, on my pile of gold and they just move the sticky, you know, they move some of the gold to the pile of gold with your name on the sticky note.

Right. So it’s all done within the bank, but that the money still moved. Right. And that once the money moves the credit, the credit life cycle, you know, the credit chain gets smaller again. As long as the money’s moving to the appropriate place that’s supposed to move to pay off the credit, the credit is not growing to astronomical proportions and not getting completely out of hand now. So then the question is, well, what if we can’t grow to economies of scale of that size like a Walmart or a Home Depot, then can we not generate the stuff we did? Absolutely.

That’s not the case at all. We had car companies in the 1890s. In fact, before when we were on a gold standard. I was just talking to a viewer, I thought we had 20, 30, 40. He said we had about, almost 100 car companies in the United States during the early stages of the leaving the gold standard, let me put it that way. So there was like, you know, when, you know, right now we have four General Motors and Chrysler. Back then there was, you know, Cadillac was its own company. Studebaker, Packard Dort apparently was the name of a company.

Got a Studebaker parked in the front right here. You have a Studebaker. Okay, I don’t. Anyway, there’s all, all you know, a million different cars. So you know all these car companies were competing with each other. So there was all this innovation, all this variety and you know, a lot of you know the, the innovation derived through competition far outseat. It far exceeded the, the, the benefits we are getting from these giant economies of scale that are just mass producing crap cars. Right. So I look, I really look forward to you know, the innovation we’re going to see on the other side of the endgame when these giant car companies all break down and Walmart breaks down and Home Depot breaks down, not to mention Monsanto is going to collapse.

Blackrock’s going to collapse. Big Pharma is going to collapse. These are all functions, these giant companies are all functions of the infinite credit stretch. Big Pharma, they’re all going to go away. Big Pharma collapsing is going to be glorious. They’re all, they’re just, they’re going to go and they’re going to. I think you’ll agree with me, I think they’ll be gone within weeks of the end game hitting. Yeah, I think so. I don’t see how, I don’t see how they would survive. I mean there might be something. It’ll be like Blockbuster, right? There’s still, there’s one Blockbuster Video like I think in Alaska there might be like one farm called Mansanto Monsanto family farms.

Like there might be, you know, Ford might be a brand name but it’ll be one of a hundred car companies instead of, you know, the only one of two car companies that are. They, they each own half of each other’s stock anyway. So there’s really only megacorp. I look forward to it. I think we’re going to see a lot of great competition, a lot of innovation and the money is going to actually move. People are going to be paid in honest wages again. So we’re going to see, we’re going to see great prosperity again. The only, and I don’t predict it look, when the USSR collapsed we should have seen if financial collapses caused die offs.

We should have seen a die off at the end of the Soviet Union. I mean they had everything. They went through, they went through the Russian revolution, they went through Lenin, they went through Stalin, they went through Brezhnev, Khrushchev, you know, and drop off Chernonenko. That, that whole period of, of no property rights whatsoever. So we should have seen on the other side of that a mass slaughter. And we did not. We saw a lot of chaos. I mean a lot of chaos. But you know the, the people that got screwed with the pensioners depending on the system, the young entrepreneurs, you know, they became, you know, things like oligarchs and you know, they were doing great.

You know, the, a young entrepreneur who was not afraid to get into the system, you know, did, could do pretty well. Now Russia has a lot of other problems of graft and other kinds of things where it’s not an honest system. So that is hampering it quite a bit. But we did not, once again, we did not see a mass die off. So I think, I don’t think that’s a function of a system collapse. What I think will happen with the farms, America’s, for whatever, for whatever reason, this is very weird, you know, everything else American, the, the system is demanding America export to China.

But for whatever reason we, we make ungodly amounts of food here. So I don’t, I don’t see a die off on the other side. I see a quick sell off and a land, I see a land rush. I think Monsanto and these giant agribusinesses, they’re going to sell their land for whatever they can get for them in real terms. And so if you’ve got some silver in your pocket and you want to start a family farm in Wyoming or wherever their farm is, you know, you can, you could probably buy land, you could probably buy land cheaper than you’ve seen since the 1890s.

So you’re saying Bill Gates land bets are going to fail in gold and silver terms? Yes. For a bastard. Yeah. I mean, let me. The land bets will do better than like you know, the Nvidia bets but, or Bitcoin vets. But yeah, they’re going to fail in gold and silver terms because the land, the large farms will not be able to run. You’re gonna, it’s the same problem that Walmart has you, the, the economy of scale isn’t there. On a gold standard you need to have a much small, you need to have many much smaller farms, not one giant agribusiness.

Yes. So I’m gonna just close this out with just observations I’m making as someone who came from America but hasn’t been here in a while and the last two years noticing changes or intensifications. First of all, just watching tv. I haven’t watched TV in years, just commercials and stuff. I was aware of this intellectually, but the fact that drug commercials are constant and everywhere strikes me as completely ludicrous that these commercials you can’t even buy. Like they end with ask your doctor About Floblargana or whatever it is. Yeah. Side effects includes death, you know the side effects.

But the fact is you can’t even buy these products. Well, like the, the commercial telling you, ask your doctor about as if your doctors know them. Without the commercial, your doctor wouldn’t suggest it. Like what it does nothing to do with you. This, this is, it’s obviously just filler for the, the company to buy the content of the news channels or whatever channels that, that are on there. He’s just buying the channel. That’s what they’re doing. Like I never noticed this, but that’s what’s happening. The other thing that’s happening is that the litigiousness of society is getting so obvious because all the money is in, is in litigation.

And, and the problem with these insurance companies because insurance is so inflated because of the malpractice lawsuits. The problem that I remember Starting in the 90s, I remember as a kid these discussions were being had, but there’s these billboards everywhere for these huge amounts of money, $500,000, $600,000 with a picture of a lawyer on them. And, and all the commercials on the radio when I’m in the car for, for law firms. Were you injured in a car accident? Were you, you know, do you have an insurance claim? All of it. And, and then so I just remember I was driving with my son in the car and it’s somewhere along, along in South Miami.

And sometimes I just like see something weird and I joke to him, like, what do you want of those things? Like, you know, I’ll give it to you for your bar mitzvah or whatever. So I see this like Persian rug factory or something that’s crew getting all these like very expensive Persian rugs. I’m like, you want, you want a Persian rug? I’ll give you one for your bar mitzvah. So he’s like, he’s, he looks around, looks at a billboard, he’s like, no, I want $500,000. Because he sees, because he’s all these billboards for like huge amounts of money for the lawsuit.

But he didn’t even realize it was going to be funny because he didn’t like start cracking up. But yeah, they’re everywhere. This, this whole country, nothing, nothing works. And my, my, my brother in law is a, he’s a ultrasound reader, ultrasound technician, right? And he sees these, these girls coming in pregnant and they, they want, they want to get like a quick abortion and they declare it as an emergency because if they say that it’s an emergency insurance covers it. So emergency rooms are so stuffed with these non emergency situations of these teenage girls that are looking for quick abortions and meanwhile they’re on their phone, they’re texting, they’re like, I don’t know if it’s a girl I’m going to keep it, but if it’s a boy I don’t want it.

So like, you know, this, this kind of like it’s horrifying. And meanwhile people who have actual emergencies can’t get in because these teenage girls who have to declare it as an emergency so their abortion gets covered by insurance. The, this whole system is so sick, it has to end. So you’re not going to talk to your doctor about Flobarganol? No, I’m not. Yeah, yeah, I, I do totally agree with you. The system is, the system is really messed up right now and I’m, I’m, I’m hoping if any of us get sick, we’re in, we’re in trouble because we’re heading into a, a system that could eat you alive.

Anyway, what were you going to say? I want to keep interrupting you. Yeah, I would just say, yeah, the, the, the, the, the silver, the Silver climb is an optimistic beacon of light in, in the increasing insanity and it will drive people, it’ll be like a North star and will drive people back to where they’re supposed to be. The pain, the pain of the, of the losses I think is just temporary. It’s just gonna be the shock of it and then people are gonna have a good cry and then they’re just gonna have to get back up and get back to work.

The one of the sign or one of the results of the breakdown of credit is going to be a giant renewal and entrepreneurship. So for example, you know, things like pants haven’t been made in America and you know, 100 years or 50 years, not 150 years, people pants haven’t been American 50 years. We’re gonna have to dust off those machines and if they’re still here and start making pants again because there’s nothing or raise, or raise some capital to you know, have some pants pant making machines shipped back from Indonesia because we’re just gonna have to make it, we’re gonna have to make it here.

So there’s a lot for the entrepreneur for somebody who wants to like start afresh, start a new, build something new. I think the future is really bright for the pensioners if you don’t get into a gold and silver position. So if you’re elderly or you’re, you know, thinking about retirement soon and you’re not in a very strong gold and silver position, I think you’re going to have a really hard time. Yep. That’s how it is. We could be very close now. I’ve been saying that for a long time. You know what it is? Yeah. Once you find, once you realize the money’s fake, you’re like, well, but it can’t last that long.

I mean, you know, everyone’s going to realize the money’s fake. But you know, it’s, it’s been going on for 50 years now. Yeah. Actually, if you want to go all the way back to 1873, it’s been going on that long, so. Yep, it has. We’ll see what happened when the treasury general account starts to rise. It’s still falling. The, the rise in the debt officially like was a $400 billion. The debt ceiling was rated that, that was all accounting gimmicks that were plugged in the 400. The, the government has not raised $400 billion since the deadline.

They haven’t raised any yet. Net. Oh, really? Okay. Right. Yeah. I’m going to talk about that on the end game Investor. This is all some kind of weird accounting stick that I don’t understand. But they’re going to raise the money, they’re going to start doing it. It’s coming. And when it does, there’s. They’re going to trigger some. Something bad and they’re gonna have to print. And I’m hoping that’ll be the last time. But whatever it is is coming. So hopefully people start reproducing afterwards. And the people who can’t handle real life, they, they will exit. There will be a lot of suicides.

That will be very unfortunate. I can’t really do anything about it. But the people who have talent and a will to live and excitement for accumulating skill and relationships and being alive, they will do just fine.
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