The reason that America was able to become so rich and so powerful over and above any other empire that’s ever existed is they used the monetary base of their gold to create a global inflationary system where all of the goods and services just flowed into their own country. And all they had to do was export paper and say, oh, that’s gold, too. That’s gold. We have it all.

Just give us the stuff. And it was like, okay, fine. Hey, guys. Rafi here from the endgame investor with my good friend Phil of the bitter draft on Rumble. Check out that channel link in the description below. And this week, he talked about capital controls. So we’re going to talk about not necessarily his episode specifically, but capital controls. What they are, why they are probably coming, and why they’re just another price control, and just another way to get to the end game, which is all the same destination anyway.

We’re just talking about a maze with all paths leading to the endgame. And it just depends which path we want to take. So, Phil, how are you doing? And relative to other paths to the end game is capital controls, do you think a not as bad one or a really bad one, or where is it on the scale of horribly horrible, I’m doing well, Rafi. Capital controls are.

They might come very suddenly and then knock a lot of people who thought, oh, I’ll just. I’ve got $20,000 in my bank account. I’m going to go out and run by some silver right now or something. Then that money’s locked and they won’t be able to get it at any price. So that would be the horror level. I don’t think it changes anything. I think I said that on my video, too.

That doesn’t really change, like you said, the ultimate destination, but it changes a little bit, the journey. So instead of a sharp dive down, it’s a jittery, sharp dive down. Okay, so just to define capital controls, price controls are usually talking about the government sets, like a maximum on gas or food or consumer goods or whatever. And capital controls is basically, they’re not controlling the prices, they’re controlling your ability to use money or to use currency.

Is that it? Yeah, that’s the way I understand it as well. I did some research for my video, and that’s what I understand. In fact, we have sort of capital controls right now. I think there’s a federal tax on profits of gold at, like, 30%, and silver, too. So if you buy gold at 500 and sell it today at, what, 2200, then you have to pay like a 30% tax on all that.

And that is specifically designed to keep people from investing in gold. Now, I believe that’s only. That’s a collectibles tax. So it’s the physical. So they don’t care about the ETF or the. You know, I don’t even know if they care about the vaulting. But apparently, if you were to have bought a gold ounce and then tried to resell it, you have to pay that collectibles tax. So I look at that as a capital control.

That’s a pigouvian tax, I think. And that I don’t think they’re trying to generate revenue off of that. They’re trying to discourage the behavior of stacking. Okay, sorry. I should define that. A pigouvian tax is a tax the government institutes to discourage a behavior, not to generate revenue. So a tax on cigarettes, you know, it has the benefit of driving revenue for the government. However, it’s typically, it’s the bootleggers and Baptists where they’re trying to.

The Baptists are trying to discourage people from smoking. So it’s a social engineering tax. Yeah, social engineering tax. Exactly. So the way I look at capital controls in that instance is to. Yeah. Is to keep people in the system. In fact, that’s what I would say, because during the in game, during a hyperinflation, people are going to be trying to turn their currency into, if not immediately, just running out to buy a pair of pants for, you know, $50,000, then at least to put it into an investment that will not depreciate as quickly.

So the capital controls are to lock them into the system, and they’re going to say, oh, it’s to discourage speculations. But speculations are just people trying to get their money out of the system or get their purchasing power out of the system, which is the money. Right. So what can you say historically about price controls just to lead us through what’s happened, or some examples that you’ve studied.

Would you call a bail in capital control, or is that something different? What’s happened that stood out in your mind? Oh, sure. So, historically, the term capital control is all encompassing. It’s not just a narrow, defined term. It means literally anything that involves limiting your ability to freely move. Capital, I would say, would be a control of capital. Historically, at the end of the Bretton woods system is when they really were like, hey, this is a pretty good idea.

We should really direct society from up on high. And of course, you ended up with things like shortages, rationing systems, and they used the excuse of the war originally. And I remember my grandparents telling me stories about having a car but having trouble finding tires in 1946, I think. And it just because there was no market mechanism and the tires were being rash, even in 46, the capital controls were not removed.

So the rubber was still going through the US Defense War Department at the time. Right. Rubber was important for the war effort, right? For. Yes, very important. Retires for the trucks or for what. Yeah, for the trucks in the war effort. Yeah. Okay. So even by 1946, there shouldn’t. By 1946, there shouldn’t have been any problem with finding tires, but there still were. Because the capital controls from World War Two were still enforced.

Yeah. That stuff was still in place. Exactly right. Exactly right. And you were still getting tickets for butter, stuff like that. So now, people, back then, people had their own gardens. I mean, my, my grandmother to her, to the end of her days, had a large garden. So, uh. And she grew up, you know, she grew up in the depression, so she was used to, she, you know, she was always canning stuff and pickling and she’s like, you know, we’re, you know, we’re never going to pretend like that’s not going to.

Has a chance of happening again. But the. But, yeah, to go to the store to get butter, you know, it may not be there because there were, there was a price, there was a, there was a capital control, and the butter was being redirected to, you know, the army as they were. As they were, you know, decommissioning everybody. But the butter was still going to the war effort, I guess, the occupation effort by that point.

And then. So, so the price of butter was supposed to go way up. However, instead of allowing the market price of the remaining butter to float, it had a price ceiling. And then rash, you know, sent out ration cards where you could only get a certain amount of butter per month or week or whatever. So you’re saying we went from literal guns and butter to literal guns and figurative butter? Yeah, I guess you could think of it that way.

All right. I guess you could think of it that way. But anyway, so after the war, things slowly wound into more free market. I mean, free after what you have discovered with how bad the monetary system is. I wouldn’t describe us living in a free market right now. I mean, sure, the prices are allowed to float, but they’re allowed to float in a fake derivative. It’s like. I don’t know how to explain that.

Yeah, well, this is just coming to my head now, but maybe you could use the analogy of, let’s say you’re on drugs and you’re totally high off your mind, out of your mind, and you have no idea what reality is, but you’re walking around, you know, just, like, staggering, and you can still stagger into places and buy stuff. So you’re still free, but, like, you have no idea what you’re doing.

Whereas, as opposed to if you’re totally drugged out of your mind and you’re chained to a wall. Yeah, there you go. I like that. Okay, so, yeah, everybody’s drugged out of their minds on fiat, but we’re still relatively free. And where we can move and where we can trade, we have very bad ideas on what to trade in for how much, because price signals are so messed up.

And then you have the gold and silver stackers that are saying all these prices are wrong, and they’re all going to fall extremely hard in these terms, you know, whenever the drugs run out and everyone’s like, what are you talking about? I’m going to the store right now. I feel great. I can stop anytime I want to. Actually, that, that, that brings me to page 21 here in this book.

40 centuries. I don’t know if you can see 40 centuries of price controls, how not to fight inflation. I highly recommend this book. I just started on page, like, 40 something. This was recommended by Daniel Oliver of Myrmekan Capital. He wrote about in one of his recent research papers. Yeah, here it is. Here’s a quote here. And I’m not sure who he’s quoting exactly. Oh, the. It’s. I’ll just read the paragraph.

During the 50 year interval ending with the rule of Claudius Victorinus, in 268 CE, the silver content of the roman coin fell to one 5000th of its original level. With the monetary system in total disarray, the trade which had been a hallmark of the empire was reduced to barter, and economic activity was stymied. So you had an endgame in Rome in 268. Okay. The middle class was almost obliterated, and the proletariat was quickly sinking to the level of serfdom.

Here’s the key. This is what I wanted to emphasize intellectually, the world had fallen into an apathy from which nothing would rouse it. So again, we see the connection, and that’s from the book, the Edict of Diocletian in 1947. So we’re always wondering, why is it that hyperinflation goes along with stupidity? Because, I mean, you could try to pick out every proximate cause as to why that happens, but we do see that it happens, and we can definitely see that it’s happening now that people are, it’s like combination of stupidity and arrogance at the same time.

And it shows up everywhere. And I don’t want to call the bitcoin people stupid and aryan. I’m not, they’re not exactly that. It’s more just like, some of them are very smart. But so it was Diocletian and he, you know, messed everything up. But, like, you see the stupidity coming from specifically the smart people. And it’s, it’s infuriating because, like, you look at them like, don’t you see what you’re saying? And they don’t.

And there’s really nothing we can do until the drugs wear off. And then the good part about that is you were talking about your grandmother who went through the depression and she had her own garden, and she knows what it’s like. But the thing is, in the depression, people didn’t trade gold and silver directly because the dollar was increasing in strength because they chose the deflationary path instead of the hyperinflationary path.

So the negative part of that was that everybody got used to the dollar being money. And then that kind of filtered down to our generation. But in the next generation, our kids, they’re going to understand the gold and silver are money. They’re going to get it. They’re going to get it very well. Quite viscerally, I would imagine. Yeah. Yeah. So if I may, if I may, take us back to price controls.

Sorry, capital controls. What I saw with the wide range of available options, I was just looking, I said, because you and I have this have the same libertarian mind. We were both, I think, on this train were like, okay, the currency, were going to have these issues with the repo markets going to break and the currency is going to, theyre going to turn on the printers again and everythings going to go to infinity.

And then the governments going to say, oops, we were sorry, by the way, Fort Knox is empty, or almost empty. So good luck. Youre on your own, right? And were going to start trading coins basically almost right away. What the hyperinflation of France article made me realize, at least, Scott, the juice is turning in my head. The juice is turning. The gears turning, just juice turning. Juicy gears.

The juicy gears. The juicy gears turning in my head. They will definitely try capital controls. These are definitely in our immediate future. And the capital controls in the hyperinflation booklet in France were part punishable of by death. If you charge too much for your bread Madame guillotine was waiting for you, and if you were lucky, it was like severe fines and prison time and stuff, and still they didn’t work.

The bakers just charged more for their black market bread. So capital controls never work. They never, ever work. But they are the tool of the desperate dying regime and they are always implemented. I just wanted people. I wanted people to be ready for that because this is going to enter into our lives. So the sooner you understand that and the sooner you can, you might have to prepare for it in ways that you didn’t have to prepare for, say, a hyperinflation.

Because in the capital control market, let’s. Let’s say something like gasoline, right, in a hyperinflating currency, with everything else being free, you can go to the gas station with silver and say, I would like some gas. The trouble is, if the price, let’s say, gas, has been limited to $2, which is, you know, ridiculously low, there’s going to be 100 people in a line just to get to the gas station.

So even if you have the silver, you can’t just. You can’t walk up to the man, you know, even if. Even if the man wants to sell you gas for silver, you have 200 people that will beat the shit out of you if you try. Well, I’m going to pay in silver, so I’m going to go to my special gas tank over here. Good luck, pions. You know? Right.

It’s just not going to work. So there’s things you have to think about and things might go different now. It’s not going to last long. I don’t know how long it will last, but it will not be long because you can’t have a functioning society if everyone’s waiting 8 hours for gas. That’s what collapsed the USSR. The USSR collapsed because people were waiting 8 hours in line for their meager rations.

Well, then why did it take 70 years? They were under price controls for seven years. Yeah, there were several times that the US actually did a bunch of grain sales to the Soviets. I think the global cabal kind of bailed out the USSR a few times. Just like in China talking about that. Yeah, yeah, China did. The same thing happened with China. Tiananmen Square was a tipping point.

And then the Bush administration came in and said, no, no, no, we like you guys right where you are. We’ll support you, don’t worry. Oh, great. Bush. Yeah. Papa bush. Papa Papadoc. Papa Doc Bush. Right. He was. He was a bad man. Yeah. It’s amazing, you know, one thing I do love about the decentralized information is we are quickly realizing how wicked these people are because before we in the eighties and nineties, we had no idea.

You got, you got what the news told you. So you learned that, like, Nixon was a bad guy, but you didn’t learn that, you know, Reagan wasn’t a particularly great guy. Bush was a terrible guy. You know, Murray Rothbard hated Reagan. Yeah, hated him because, like, he functioned as the same function that, let’s say, the right wing in Israel does, where they join and they promise all these things to the right wing and then they go left.

You know, Reagan took all the libertarian energy and he spoke libertarian language and he promised all these libertarian things, and then he ended up being the biggest war spender, you know, ever. So he kind of took the libertarian movement. He threw in the trash. Yeah, we got. We’ve been burned a few times. Yeah. Which is why I’ve pretty much given up on politics, and I’m just waiting for it to fall over.

And I’m just, I’ve gone local, and what I’m trying to do is just speak the truth and see how many individual people I can wake up, because that’s going to be the revolution. It’s not going to be from the top down. It’s going to be from bottom up. Yeah. It does matter who’s on the other side of it. Let me put it this way. I think, and I could be wrong.

I could always be wrong, at least in american politics, Biden is guaranteed to confiscate all the gold like FDR did. Biden will. The Biden regime, I mean, Biden’s just a walking roomba, but the Biden regime will definitely confiscate all the gold and try and get the central bank, the Federal Reserve recapitalized and restart. They’re going to try and do that again. There’s a decent chance Trump will go back to just issuing the gold coins directly and the gold and silver coins directly.

So decent chance. Now, some of his advice I’ve researched into his virus. Peter Navarro is terrible. He’s one of the worst. He’s a big tariff guy. He doesn’t understand. I mean, for somebody who teaches economics, he does not understand it very well, at least not in the austrian sense, which is funny because he bashes the, you know, the neoliberal monetary theorist, all that stuff. But if you listen to him talk, in my opinion, he’s no better.

Now, you get other people who are talking about returning to gold. They’re talking about going to a gold standard, but there’s different gold standards. Like I said, you can issue the money directly and let the people trade in it, or you can take everyone’s gold issue notes off of that, which apparently we were talking before the camera started. Camera went on the Zimbabwe has gone to a gold standard, but it looks like is a.

We’re going to keep all the gold in a vault. And here are some notes that are theoretically attached to the gold. Yeah, that sounds like Asen yachts to me. Yeah, close to it. It’s not. Not quite that. But in Zimbabwe, there’s a culture of you don’t trust the government’s money at all. So even. Even if they went to a gold standard, if this is. This is a tough question.

Like, let’s say we’re on a hyperinflationary path and the CPI is going higher and higher, higher every month, and we’re at 40, 50, 60, keeps getting worse. And then let’s say the dollar crashes, and then after it does, the government takes all the gold and promises to back the dollar with it. You can’t just do that and then assume that the currency will work, because it has to be demonstrated.

The two are substitutable. There has to be a test of it. And we can. We can what? We can watch what’s happening in Zimbabwe as a test case. Is the zimbabwean dollar going to survive now that they say it’s goldback? That’s what I have to do. You just steal people, then tell them that you have all of it? I don’t think that’s good enough, really. So is Zimbabwe going to make its currency actually exchangeable? Like, people can go to the central bank and a zimbabwean can go and say, here’s like a trillion dollars, give me an ounce of gold or whatever it is.

I don’t think that’s going to happen. I think this is just them stealing again. Yeah, I think so. Because if they did, everyone would immediately run out and buy the. I wouldn’t trust the Zimbabwe government to keep the gold on one to one with the notes. I’d run and get the gold. Yeah, that’s. That’s the thing about. About gold bugs is that they think that once you mention the word gold and currency, it becomes like this magical thing where the currency suddenly works.

Because you said it’s on a gold standard, so everyone’s, oh, yay, look at that. But, like, seriously, you’re going to. You’re going to give your gold to Zimbabwe and then take their paper and then invest in that. That sounds totally ridiculous. Who’s Montu? He is our leader. He seized power in a bloodless coup, all smothering, just like Jimmy Carter. Yeah, sounds insane. Or, you know, who are the, like Neil Kashkari? Like you’re going to trust that guy with your gold or Lael Brainard? I’m sorry, we got way off track.

We were talking about capital controls. So the final point I was going to add on the capital controls was to be the capital controls are the end game. It is a function of the in game, it doesn’t delay it, it’s just a mutation of it. So instead of the currency hyperinflating and people running out to the stores, the prices, let’s say there’s price controls and capital. So if there’s capital and price controls, you go to the store and the prices haven’t changed much, but there isn’t.

Your money is locked in your bank account and you can’t get it out to get it. And there’s also a long line of people because the prices are too low. So it’s this massive, massive misallocation of resources at every step of the chain. And it is the end game. It’s just a mutation of the end game. So the logical, the way I advise people on my episode was, logically, if you see that your money has been locked into a bank account, you should honestly just write it off.

Don’t waste your time trying to get it out because you’re not going to get it out until it’s worthless. And if it’s a deflation crash, you’re not going to get it at all. The bank’s going to go to business, so don’t. If you are worried about that happening suddenly, I would have some, maybe some paper reserves just to get you through the initial stages. I think practically, first of all, before we get to the practically, I think the analogy of the hose is just going wild or they need to clamp it off somewhere.

So with price controls, they clamp it off at the store and capital controls, they clamp it off the bank account. But it’s the same thing. The hose is going to explode either way. So I think practically the best way to. A good way. That occurred to me, to get around capital controls or to get around price controls, really the same thing is to localize. Find out who are your local producers, your local farmers market.

The guy who I just went to, a guy who fixes watches. So there’s one guy who has real skills, people in your neighborhood who have skills, your neighbors who have skills, and you tell them. Now, look, I know I sound crazy, but if your bank gets shut down or the banking system stops, come to me and I have real money and I’ll trade with you. Just set it up on the low now so that these people know who you are and come to you for trade when they need you.

And then you can operate under the capital controls, under the price controls, because your money’s outside the banking system and, and you’ve got it set up. It’s like, it’s a rickety system of pipes, but at least you got something. Yeah, absolutely. Absolutely. And there’ll be, there, the market always attempts to clear. So to go back to the gas station example, like, if there’s a two hour line, there will be somebody, there will be somebody hungry enough that they will.

You, you give them the keys to your car and some, and some money, and they wait. They will wait in the car, in the line and fill your car up and deliver it back to you. And there’ll be some sort, it’ll be an Uber app kind of thing. So there will be some sort of market clearing device where you can afford, or you can get your gas if you can afford it, you have to pay for these other services, but these things will happen.

The market will attempt to clear. You could even see in that thinking, you could see long lines as part of the price, meaning that’s an opportunity gone. Right. So how much does gas really cost? And you have to wait 6 hours in line to get $2, $2 a gallon gas. It costs maybe $50 a gallon or depending on what you would earn in those 6 hours that you can’t earn when you’re sitting in your car waiting for gas.

So. Or if you have to pay clear, pay that guy $15 an hour or $18 an hour or whatever to sit in the car. Yeah. The market will always find the clearing price. That’s, that’s a good point. Yeah. So there, there will always be a service available. But now if they put, if they put police officers at every gas station and say, no, we’re going to, you know, the state is determined to make this happen, then, yeah, you’re going to have shortages and you’re not going to get your gas, but then it will last that, you know, then people will riot because they won’t have gas, and then we’ll get back to the free market.

Yeah. And the more policemen they hire, they have to be paid, too, and it costs them more. And, you know, they run out of money also. And speaking of states running out of money, we can go to our second topic here, which was China hoarding gold and why that’s not a big deal. I have one thing to say about this. What exactly did you want to talk about? China.

Was China hoarding gold? Oh, it’s just on tv. China is like. I mean, this big spike we recently saw in gold appears to be central banks, and China seems to be leading the charge on the purchase of the gold. What? I was the evidence of that. I heard people talking. I didn’t look into it directly. I don’t have direct from what I heard. I think it was like you and Alistair McLeod and people saying it was central bank buying.

Wasn’t it? You. I didn’t say that. You didn’t say that? Okay, I think it was Alistair. And then I’m gonna. I’m gonna back up and say it was Alistair McLeod and maybe nobody’s special finance, but they might say it wasn’t me either. And I made it up in my mind. It was a fever dream I had. But. Okay, assuming I will, we can look it up and make sure.

Confirm for next episode. But assuming that it is central bank buying that is driving this recent surge in gold, mostly because you know why the premiums haven’t increased. It was you saying the premiums haven’t increased. So that was leading people to the conclusion that it was central bank buying. Okay, well, I can tell you what it’s not. I don’t know what it is. Like, you know, defining God.

I can tell you what he is and I can’t tell you what he is. So it’s not the stackers. It’s also not. It’s not the retail ETF buyers, because that’s bleeding gold. Still, even yesterday, I think GLD lost. Not yesterday. On Friday, it lost like 160,000oz. I was saying that the open interest in the futures market is rising, and that’s really a war between the bullion banks, which are not the central banks.

The bullion banks are like the really big G SiB banks, a lot of them, like JP Morgan, HSBC, bank of America, those ones. And they’re fighting with the hedge funds. So this is a speculative war on gold derivatives between the bullion banks and the hedge funds that are long and the bullion banks that are short. Whether central banks appear in here, I don’t know. Maybe they do. I hope they don’t, because I don’t want them to have any.

I remember now. It was Adrian day. It was Adrian day on Wall street silver. Adrian Day is like the guy in charge of, I think, Peter Schiff’s mutual funds. Yes, I remember that. That’s my source. It was Adrian Day on Wall street silver. I remember that now. Yeah. He said it was central bank. He said, and he did it through. He derived this conclusion through the same logic you are.

He’s saying, well, it can’t be this and it can’t be this and it can’t be this. So the only explanation available to him is that it was central bank. Bank buying. So maybe it’s. Maybe it’s large families, not central banks, that you are. What do you call those people? The large families. The old offices. Family offices, yeah. So maybe it’s that and not. But assuming that it is, and there are rumors that China has an enormous amount of gold.

China. The Chinese, the CCP has an enormous amount of gold in its vaults. So let’s assume that they do, and let’s assume the end game happens. And then, you know, all the currencies kind of float away into the ether, and whoever has gold has money, and whoever doesn’t, doesn’t what? And the chinese government. Turns out the CCP has more gold than America ever had in Fort Knox. Let’s say 10, 15, 20,000 tons of gold.

Why is that not a big deal? And the reason I say it’s not a big deal is the same thing we were talking about before. They have to spend it. You can’t just do the Zimbabwe thing where you say, oh, we have this gold and we have this paper. They actually have to get the gold circulating out into the economy. And once they do that, then the money’s in the economy, then the people are.

People that are trading in real money are free. So the CCP would lose its enslavement, one of its main enslavement mechanisms, which is their social credit score system. Yeah. It’s like, for example, is it a problem living next to a neighborhood of billionaires? It depends. Do those billionaires have the ability to come and attack you every day and rob you just because they feel like it, or are they just being rich and enjoying their lives and spending money? And, you know, it could be a very good thing to live next to rich people if they’re spending and patronizing your business and.

And, you know, making you rich, too? It’s like that. I hate to say this term, I don’t like you, but the trickle down republican bullshit theory. Okay. You know, I really don’t like that simplistic, overly simplistic economic jargon, but it does have some layer of truth to it. So the problem isn’t that necessarily that China has more gold in the United States? Do they have the ability to steal from you? Can they keep inflating it? And now that I’m thinking about it, so you could ask the question, why did it worked in 1934? Right? FDR was able to say, oh, give me your gold.

And then these dollars an hour, $35 an ounce. And the dara kept circulating. It was the Great Depression, but it wasn’t total mass starvation. In the end of society, they hobbled along and things restarted, and things got going. So how did that work? How can you just declare 21, then 35, and then people just like, okay, whatever. I think the answer is that in the Great Depression, it was deflationary again.

People wanted dollars, and so now they didn’t change. The dollar didn’t collapse, they didn’t change their habits, and now all of a sudden, it’s from 21 to 35. So you can do that and thereby maintain the trust in the dollar without actually making it. Without actually making it convertible to the public. He made it much less convertible. He made it only convertible to central banks or foreign central banks.

And he outlawed gold in America. But once your currency completely collapses and the trust is gone, you can’t just take the gold and say, oh, it’s here now, and you can use the currency. Right. That’s. Yeah. People believed in America back then. I mean, that they were, you know, America had not done them wrong in their minds, so, you know, people believed in it, and I think they were willing to offer credit.

You know, credit is a trust mechanism, or is mechanism based on trust. So I think people were willing to extend credit to those notes. I don’t think anyone’s going to extend credit to any paper pretty soon. Yeah. So then China’s going to have to spend its money. Yeah. And not to mention that the chinese people are going to be broke. I mean, really broke and furious. So I think the quickest thing the CCP would do would be, oh, here’s.

Here’s a bunch of gold, don’t kill us. Chinese people being furious, it’s. That’s hard to picture because they’re so servile and they’re. They’re just. They just do anything their government says. I mean, they went through the famine, and 40 million people starved death, and, like, the government still survived. Yeah, yeah, maybe, you know, maybe. Maybe. Maybe it will survive. I don’t know. Maybe there’ll just be more draconian and people eat it.

Yeah. Yes. It it doesn’t really matter. You don’t have to, like, make a big deal about China having more gold than the United States. It’s not the fact that, that the United States had so much gold that made it rich. It did make it rich. But what really, what they did, the reason that America was able to become so rich and, and so powerful over and above any other empire that’s ever existed is they use their, the monetary base of their gold to create a global inflationary system where all of the goods and services just flowed into their own country.

And all they did, all they had to do was export paper and say, oh, that’s gold, too. That’s gold. We have it all. Just give us the stuff. And it was like, okay, fine, we can’t do anything because you won World War Two and you made us agree to this monetary system. So here’s all the stuff, and we’ll take the paper. And now they’re stuck with stacks of huge stacks of paper.

And they’re like, I don’t know if we can keep doing this, guys, but we’re kind of stuck here. What are we going to do now? So they’re like, why don’t we just get some gold in case for when this thing falls over, we’ll have some money? And they’re like, okay, so maybe that’s what’s happening now. Yeah, I think. I think that’s a pretty decent explanation. I don’t even know if the central banks understand is that, you know, the bankers, because they’re so there’s, they’re huffing their own farts so much, but instinctually, I guess maybe it’s pushing them in the right direction.

It’s like, it’s like all the YouTube. I mean, there’s people, you know, we’ve talked about this before. There’s people who are collecting silver to ward off the space aliens. But, you know, as long as long as you’re hoarding silver, it doesn’t matter. Yeah, like, does any, does any single brain cell in your brain know what you’re doing? No, but like, your entire brain as a whole, you kind of got control over your activities.

So there’s like, you know, there’s a part of your brain where it’s like, I’m going to stack silver to ward off the aliens. It might not be a dominant part of your brain, but in some people’s it is. And, you know, it just depends, you know, what brain cells they’re tickling at the time and what they’re used to and the amount of substances that they’ve ingested and what parts of their brain those things activate.

The other thing I want to add, I forgot to mention this. So if China has tons of gold and America doesn’t have much gold, let’s say, let’s say Fort Knox is empty and there’s some people with some gold in their private hands, and that’s about it. The prices in America in gold terms will be much lower than the prices in China because the gold is a medium of exchange.

So if you have more medium of exchange in the system, then prices are higher because there’s more of the medium floating around. So if the. So there will be, there will be a, there will be lower prices in America. So the, the people with gold will be encouraged to disgorge it because they can get more stuff for less gold. And then b, people in China who have gold will be encouraged to import things from America as well.

So eventually the gold will flow and balance everything out. Yeah, well, that’s, that’s what a gold standard is supposed to do. It’ll be an osmosis. Yeah. It’s for every good and service and for, even for labor. That’s, that’s how things are supposed to happen. You know, no one wants to. No one wants to actually part with their gold. They would much rather part with notes for gold and then remag on the notes.

That’s. People are just all doom and gloom. Oh, you know, the chinese social credit system’s coming to America and China’s going to dominate with their, you know, state. This has always been throughout history, even in the 1930s, people are saying, oh, the Nazi. The nazi way of doing things is just, it’s so superior to our free way of doing things in America. Look, they’re taking over everything and, oh, this is.

We have to be more like them or we’re going to lose the race. Right. This happens every single time. Then Soviet Union, oh, the Soviets are taking over everything. And they got into space first. Their rocket program is better than ours. Look how many bombers they’re building compared to us. We need to be more like them or we’re going to lose. This happens every single time. The totalitarian regime, maybe on paper, looks like it’s doing better, but it’s not and it never will.

Freedom is always the better way to live. Yeah. Yeah. So this, the dystopian future, like, the techno dystopian future. You keep saying a lot of your shows, it’s not, it’s not going to happen. We’re going to get close to it. There’s going to be. They’re attempting it. I’m not denying that they’re attempting. I know they’re attempting it, but they’re not going to succeed. They can’t, because that would collapse.

Society would collapse production, and people would stop doing anything, and then everyone would starve to death. It all ends in the same thing. The question is, like, what after this happens? What level of technology do we kind of settle at and to build from there? Do we continue on the AI trajectory? Do we continue in the direction of techno dystopia? Do I. Robot, the robots taking over or something like that? Terminator.

Who knows? But there’s going to be a technological regression at the end of this, and it’s very interesting to think of where we’re going to settle. Yeah. I mean, the last big one was the follow, and it was. It was. It was quite a regression. Yeah. So hopefully, we hopefully don’t go back to not taking baths every day, but. Well, I couldn’t. I could not take that. That might actually be important.

You know, taking a bath every day, this is kind of a detour, but taking a bath every day. And I’m not saying don’t ever take a bath or don’t ever wash, but. But smell is something that we have lost the use of because we keep wiping off our stenches and. And covering them with deodorant and other fragrances too often. And that. That might lead us to dating the wrong people and reproducing with the wrong women.

I’m not sure, but it’s a theory. You’re saying. You’re saying don’t bathe so that your animal musk can seep through. And I’m saying I have an idea for a dating service where you have to submit a sweat sample and have it analyzed and then matched. That might work. I don’t know how I feel about this, Robin. Okay, well, I’m off the market. You’re off the market? So I guess our senses of smell are not that bad.

My wife is always telling me to take a shower. Okay. All right, last topic, hyperinflation in France. The booklet. Wait, no, you said repocalypse and COVID print. Oh, yes. Repocalypse and COVID print. Yes, yes, yes, yes. We cover this briefly. So I had. I had an argument with somebody I was talking to. Not an argument. I had a discussion with somebody I was talking to about the COVID print, and she was saying the COVID print was necessary because they had shut everybody down.

You know, it’s the typical, you know, the cure being where, you know, they break your kneecap and then, you know, a cast is necessary. Well, of course the cast is necessary. He broke my kneecap. So, you know, they’re saying, oh, well, the print was necessary because we were all locked down. It was. It was a crisis. It was emergency. We had to do it right. And what I said was, no, actually, the printing.

The printing had started, and she was. She was a big. She’s a big Trump fan. She said the, you know, Trump had the balance sheet of the Fed was rolling off, and he was doing great. And, you know, everything was going great before. And then COVID hit, and we had to explode it up. And I said, no, if you look closely, the print started again right before COVID So the repocalypse happened because they were draining the balance sheet.

We had a sudden surge in repo rates, and they went back to Zurpenberg, like, right before. Did they go back to Zurpenburg? Hold on, I will get the chart. Yeah, they went back to Burr. Yeah, they went back to Burr. They started Qe again. Yeah, that’s right. Yeah. Now, it didn’t go vertical. It didn’t go completely vertical until COVID. However, the timing of that is like, I don’t know if they needed to go vertical or not.

Like it. Could they have stayed on that? On that trajectory is the Fed’s balance sheet. Right here is September 2019, August 2019. So here. Here’s the end of QE three. We can zoom it out even more. Right here is the regular inflationary low reserve system. And bam. 2008 financial crisis. Qe one, wobbly, wobbly. Qe two over here, nothing going. Qe three. And here we stayed stable for. What was it like, this bar here? And I would get rid of it.

We were stable from 2014 to 2018, about four years. And then we started Qt over here. The Fed was rolling off its balance sheet, and then, bam. We had the apocalypse. September 11. It was really September 17, 2019. And then if we zoom in here, we can see that. Let’s go to the ten year. And the balance sheet starts to expand. Right here. This is QE starting again.

And they said it was temporary, and then, wham. Lockdowns. And that’s when it went vertical. Just to show you where we are now, if I turn off our heads here, this is the next Qt over here. And then, wham. Regional bank bailout. And then we’re going down, down, down. And the rate is increasing because the bank term funding program is being paid back now, I don’t know where the fault line is, the next one, but it’s definitely there somewhere, and we’re going to hit it.

So the question of the tinfoil hat variety is, was COVID planned to plan or even just taken advantage of to print the print the notes needed? That is the question. That is the million dollar question, as they say. I don’t know. Well, let me ask you a different question. Does it make a difference if it’s one way or the other? Let’s say it was planned, therefore, what different? What? What do we have to do differently, assuming it was planned, other than if it wasn’t planned? Oh, man.

If it was planned, then, then we have smarter overlords than I give them credit. Than I was giving them credit for. Okay, then it wasn’t, it wasn’t planned. Okay. They truly are the drooling idiots we think they are, then, yeah, I would say maybe it was a crisis. I think it benefited everybody at the same time that needed the benefit of it. You know, the people that hated Trump wanted to blame a disease on him.

The news media loves to blow things out. Remember murder bees? Remember we were going to have bees that were going to come in from Africa? Were you in America at the time? This was in the nineties. Yeah, we had these bees, they were coming in from Africa and they were going to kill all the native honeybees, and they weren’t going to produce any honey. And their stings are faded.

They could chop off the heads of other bees. Yeah, yeah, yeah. Asian giant hornets, nicknamed murder hornet murder hornets. Murder hornet murder hornets of killing insects and even rodents. And viral videos of these attacks from years ago are making their way around the Internet again. Individual hornets will capture bees at a hive entrance, cut off their heads, and mash their bodies into a meatball so they can drag it back to feed their young.

I remember that. It’s so ridiculous. Okay, yeah, none of that. None of that happened. And then Ebola. Ebola was going to come in and, you know, someone had a case of it somewhere in Texas or something, and then it was going to spread and we were going to die. I mean, the media loves this, so the fact that this thing actually was spreading sort of set them, you know, it gave them, what, a full year of something to talk about.

Yeah. So, you know, the media, you know, they got to do their thing, and the CDC got to boost its budgets by astronomical levels and, you know, be the important people who saved the day. You know, everybody got to benefit and feast at the corpse of liberty. So I don’t think, yeah, I don’t think it was orchestrated in that way. However, I think once it showed up, I think the fed was quite happy to say, yes, we will print all the necessary notes, because that’s what they do.

What could have happened? It’s generally how these systems tend to work. We can use the example again of a single brain cell in your brain doesn’t know exactly what you’re doing and isn’t working really consciously together with any other cell. It’s just what the whole system is doing. Your brain cells. One brain cell is part of it. You have this guy, Fauci, who just wants to increase budgets to himself, and he wants to do these weird things because this is what tickles them.

They like doing it. You know, they like controlling things. They like being Frankenstein. That’s why we have these stories of these, these weird doctors that, you know, sew body parts together and create things, because they’re, that’s what humans do. Like, we like, you see monkeys in a, in a cell playing with puzzles. It’s the same thing. It’s just a lot more, a lot sicker and a lot more dangerous.

So you have people like Fauci, you have people like, like whoever’s in power, and they want to play and they want to tinker and they want to pull a different lever, and they’re like, why don’t we try lockdowns? But what if they’ll listen to us? What if we can actually, like, tell people, just stay in their homes? And they will. Let’s try that and see what happens. And then people actually listen.

And then, you know, somebody calls over from the White House to the, to the Federal Reserve and says, look, these idiots, they’re staying at home. Like, why don’t you just print a bunch of money? And the Fed’s like, okay, sure, that’s, we want to do that anyway. Okay, let’s do that. So it probably happened more like that. That’s what I’m thinking as well. That’s something as well. Now, if they, if there hadn’t been COVID, they still would have had to do some sort of print that I’m sure of.

Yeah, there would have been a severe banking crisis, and then there was like, maybe the balance sheet would have, would have gone higher and higher and higher, and then it wouldn’t have been fast enough. So something would have happened. Some kind of financial collapse somewhere, whatever. Some bank or real estate or again, or whatever sector, and then you would have seen the vertical move again. Whatever it was just taking longer.

Did that. Would that have been the end game? Like, did they delay the end game through COVID? I don’t. I don’t know. Maybe. I don’t think so. I don’t think so either. Excuse me. If anything, the end game will be. The end game will be when people run out of the streets to spend their currency. So, yeah, I remember very clearly, March 2020, that where the stocks, the gold stocks were, like, tanking like crazy.

I recall my wife was looking at me and she’s like. She’s like, Rafi, just promise me, like, I’m not going to lose you. She went psychologically, and I was like, no, this has to be it. This is it. And it was it in a sense, it wasn’t. It. It. But, like, yeah, I got through it. And then after that, I gathered my thoughts. I was like, I have to start the endgame investor, because.

Because we’re on the way now. When a wife says something like that, their husband looks like a raving lunatic. You must look absolutely insane. Yeah. I can only imagine that. The hair frazzle. Yeah. It’s like you can feel the blood draining from your face. Yeah. So that was the. Well, you know, I’m so glad you started the Egi, because you saved me and my family, too, because I wasn’t.

I was, you know, living my life. Just. Just be another cog in the machine. Yeah. I’ve made references to you, and if you. Without calling you by name and some of the recent publications on Substack, check out endgameinvestor dot substack. com. Yeah. You’ve had your own. Your own run ins with insanity brief, right? It happens. It has that effect. It does. It does have that effect, yes. The clarity.

The sudden clarity. You’re like, oh, yeah, the whole chain kind of, like, enters into your brain, but you can’t sort it out. And it’s like, there’s, like, pictures and flashes and, like, hold on, it’s coming in. And like, what was that movie? Like, Johnny Mnemonic. Remember that movie? It was a really bad. It was a really bad. What’s his name? Keanu Reeves movie. Like, and he’s carrying. He’s carrying around this information as to how to cure this disease that’s caused by electronics in his brain.

It’s 80gb, and then he has these leaking of information in his head, and it’s causing him to die. It’s like, that’s what happens when it all comes together. It’s like everything just juts into your brain at once. And you can’t handle it. So you got to just jump up and down and tell your wife that you’re not going to lose it, and hopefully you won’t. Now, how is it, like we said we were talking before about smart people being dumb? How is it that there are so many people in this space and so few get it as well, as well as you do? I mean, not to not to not to not to fluff your ego.

No, I don’t, I don’t, it’s not, it’s not fluffing. I don’t feel good about this. Yeah, it’s like, it’s like, do I feel good about gold hitting 23 50? Like, I turned off my phone, then I turned it on after Shabbat, and then 23 50, I’m like, I’m like, okay, well, I have more money, but, like, oh, God, it doesn’t, it doesn’t feel good. No, no. It’s like choosing perpetual suffering.

I’m not suffering. I feel fine, but it’s not, it’s not pleasant. Yeah, but like, how is it, like, so many people, the logic, the logic of how this happened is so crystal clear to me. Like, it’s so, it’s so just, oh, there was money, and then there’s credit, and then if you take away the money, then there’s just credit, and you’re just issuing endless amounts of credit. But there are so few people who understand who get to that point.

And it’s such a simple, logical point. I mean, these are people, like, on YouTube making videos with way, way, way more subscribers than you or I have, you know, and they’re, oh, bitcoin. Yeah. I can’t really answer the question, but I can give two literary examples. One, I remember, I would recommend that you read a book called Mother Knight by Kurt Vonnegut. I had this Vonnegut phase where I read all of Kurt Vonnegut in, like, six months, and it really took me to a different planet.

I don’t recommend reading all of Vonnegut in six months, but, you know, read Kurt Vonnegut. You’ve got a major paper coming up on Kurt Vonnegut. How are you gonna write the paper then, huh? Hi, I’m Kurt Vonnegut. Why’d you fail me? I didn’t, thornton, you failed me. Whoever did write it doesn’t know the first thing about Kurt Vonnegut. Me. Hey, Kurt, you read lips f you. And there was one book called Mother Night, and it was about this american Nazi in Howard W.

Campbell junior who had this radio show where he was, like, bashing Jews and yelling at them. But he would put in these codes with coughs and sneezes and pauses to convey intelligence information to the american forces. So he was a spy while he was doing his anti semitic radio show. And he had a description of. He’s the narrator of the story. He had a description of how these, their brains worked.

It was like, they were like clocks, and they had, clocks have gears. We were just talking about clocks before we started recording. The clocks have gears, but there’s like, let’s say if there’s, like, two gears missing, if there’s two teeth missing on the gear, then at that point in the watch, the second hand skips two clicks and goes straight to, you know, and the time is off, and it’s.

It always misses, let’s say, 2 seconds a minute. Um, so if you tell them that they’re missing a gear, it’s not like they can recognize that because they’ve already formulated their thoughts in terms of the missing gear. Like, what do you mean? I have a missing gear. And, like, their time is off, and so you can’t really talk to them. But that’s how they think, because they’re just, they’ve, they’ve shaved off a gear, and they just don’t think that way.

And I can give the example of the other literary example. If you want to take it historical, fine. If you don’t find. But the entire, again, the entire Old Testament is a war against polytheism. It’s like, it doesn’t make sense to carve a statue and say, that is God. How did that start? Because it started because somebody saw the star and said that, you know, it’s way up there and it’s shiny or the sun or whatever.

It must be powerful, and he must serve the creator. And then somebody made a form of the star down on planet earth and then bowed down to it to respect the sun, to respect God. And then some kid saw somebody bowing down to the stone and said, that’s God. And he didn’t realize that it was connected by derivative layers. And, like, and nobody understood this. Nobody understood it until Abraham came and said, look, guys, this is all crap.

And it started his own people, and still nobody gets it. So it’s hard to understand that you live on a mountain of derivative chains because you see people exchanging money and they’re like, what’s that? And it’s just paper. Oh, okay, I got to get some. And then they just continue the chain, and that’s it. I’ll tell you, when you first connected all the dots for me, I went out and I told that, I said, everybody listen, the money’s free.

Got to get gold zillow. And like, it was like. It’s like the crazy guy walked into the saloon, you know, people were looking at me quizzically and somewhere just, you know, howling with laughter. Howling. So, you know, it’s, you know, you get treated like a false prophet. I had this experience also with vectors. I gave my kids the standard compliment. Mm, what’s it called? MMT. Mmr, whatever else they get.

Polio and all this other stuff. And then, because I never questioned, it was like when anyone would say, these things are not safe, I’m like, what are you talking about? We had these diseases, now we don’t have these diseases. How do they not work? Of course they work. I didn’t even. It’s like my brain at that point with vaccine was like, if you talk to me about that, just.

I’m just going to stop listening, right? Yeah. Just going to turn my head off, because I know that you’re crazy. I know it. So I just don’t listen. Talk about. Talk to me about anything else. I’m not willing to listen to you about that. That’s how it was. And then, and then COVID happened, and then, and then I was like, wait a second. And then I heard about this book.

I heard about this book. It’s exactly. It’s the same damn thing as derivatives, over derivatives, over derivatives. It’s this book called Turtles all the way down. And the truth is that might work in the sense of they might reduce the chances of you contracting a disease. But nobody knows the safety statistics because all are tested against previous generations. In fact, there’s no placebos in any of these damn trials, and I didn’t know that.

And so they’re all resting on the previous ones, and it’s all a stack of turtles that are lying on nothing because there’s no original safety test. And then that was able to. That entered into my head, and that was like, another thing of, like, pictures, like, what have I done? And it opened me up to it. But you have to understand where you are. And if you’re trying to knock over people’s world and say everything you believed in is a bunch of bullshit, they’re just going to turn off.

Yeah, yeah. If someone’s stuck in it, you’re not going to get them. You’re not going to. There’s nothing you can really say. So how does it happen? It happened to me on certain uncertain aspects because you grow up a certain way, and you can’t accept that the doctors who put this stuff into your kids might not have known exactly what they were doing. Yeah, well, because they were trusting, you know, they were trusting the researchers, you know.

You know, it goes back to a mistake somewhere far up the chain. You just don’t know. Yeah. And I recall we read this book, my wife and I, and then we were. We were, like, avid listeners to Bret and Heather Weinstein of Dark Horse podcast, and they were slowly coming to it also. They took the same path we did, and they were very, very pro. All kinds of activities.

And then as they were getting closer and closer to understanding that it was all a stack of turtles based on all the way down with no foundation, with no safety foundation. At least then I remember Heather was saying, and she was responding to something that RFK junior had said. She was a big RFK junior fan and his. So she was responding to a claim to demon, that none of these have any safety testing against placebo.

And then she said that in this sort of slow word after word because she had to say it and she didn’t want to say it. And she’s like, that claim is true. And I was like, yes, heather, you got there. You made it. Okay. Now we can start rebuilding. It’s very difficult, though. It’s like, you have to accept that. You have to start. You have to rebuild from scratch.

Yeah. Yeah. Breaking down your psychological walls is very tough. Very, very tough. Tougher for some people than others. I’m a little weird in that. If someone’s like, you’re wrong. I’m like, oh, oh, you’re right. I guess I am wrong. But other people. There are certain things, though, that. That you. That will be more difficult. I don’t know what they are. Yeah, one of mine was back, but it took this whole thing to, like, to blow that out of the water for me.

But, you know. Yeah, everybody has that. Don’t work that tooth. Teeth. Everyone has gear teeth. Everyone’s got missing teeth. There you go. Thanks for watching, guys. And check out Phil’s channel at the bitter draft on rumble link in the description below. Check out endgame investor at substance stack. And check out my Patreon if you want to learn more about my biblical thoughts in the current era of insanity and why it’s almost over.

Thanks, Rafi. Look forward to talking with you next time. All right, bye. .

See more of Rafi Farber on their Public Channel and the MPN Rafi Farber channel.