➡ The Federal Reserve can’t allow a recession because it would collapse the entire system due to the $37 trillion debt. The current global financial system is failing, with the value of US Treasuries, the system’s foundation, rapidly decreasing. However, a new system is emerging, with companies like MicroStrategy using Bitcoin as a base asset to create new financial products. This shift could lead to a significant wealth transfer and change the global financial system.
➡ Companies are shifting from traditional treasury models, where they store money that’s losing value, to a new model that boosts returns. This involves turning their treasury into a ‘refinery’ that generates more income. This change is driven by the need to keep up with the 10% annual increase in money supply. Companies like Berkshire Hathaway, Amazon, Google, and Microsoft, which have billions in cash, are expected to adopt this model. This shift is part of a larger cycle of technology development and adoption, and it’s just the beginning.

They literally can’t let a recession happen. And I’m about to show you the mathematical proof that changes everything you think you know about what’s coming next. You see, everybody’s been waiting for the crash for two years now, defensively positioned, sitting in cash, missing out. But what if I told you that the Fed is trapped in a $37 trillion dollar corner where allowing a recession would collapse the entire system. Now look, I’ve been analyzing macro cycles for two decades. I’m a partner at a leading Bitcoin venture fund. I advise multiple public companies and what I’m seeing in the data is the biggest wealth transfer setup I’ve ever witnessed.

And by the end of this video, you’ll understand exactly why they must print forever and how to position yourself. So let’s go. All right. What a time to be alive. We are living through a massive evolution right now. It’s something what I talk a lot about because I talk about technology a lot. And it’s something called creative destruction, where a new way, a new creation, creativity kills the old way. Now, what are we talking about? We’re talking about the entire global financial system, the bedrock of the system being replaced, and the new system that’s being built on top of it.

And we’re talking about, first of all, the death of the existing system. Now, the death of the existing system is already happening. It’s become decrepit. It’s become old. Nietzsche said, that which is falling, shall ye also push. And so the system is already falling off of an edge, and there’s a new system being built up on top of it. Now, you probably are already aware of this. I talk about it on videos all the time. In the United States alone, and Japan, and China, and the ECB, they’re all the same. But in the US alone, the debt continues to go up at an astronomical pace.

As a matter of fact, look at these trend lines of the debt growing faster, faster, faster, faster. Next level is going to be going straight up. We’re talking $37 trillion of debt at a record rate of adding a trillion dollars of debt every hundred days. Now, in the 2000s, it was every couple of years to get a trillion dollars of debt. In 2010s, it was one year to get a trillion dollars of debt. And today, as I said, it’s about a quarter, about every quarter, a new trillion dollars of debt. Now, the reason why I want to bring that up real quickly is because the bedrock of the entire global financial system is US Treasuries.

But the problem is that if I’m going to buy a US Treasury, that’s debt, I’m going to give the government money, and they’re going to pay me back 3, 4, 5% interest. And then in 2, 5, 10, 20, 30 years, I get my capital back. But do I want to loan somebody money who’s insolvent, who has no money? Do I want to loan somebody money for 10, 20, 30 years? They’re going to pay me back, but when they pay me back in 30 years, it’s worth way less than what I gave to them in the first place.

And that’s exactly what we have going on. So as that government debt continues to explode, as they continue to increase it by a trillion dollars every hundred days, those holding the debt are losing money at a rapid rate. Here we have the TLT, which is basically an index that tracks the long-term US Treasuries. And what we can see over the last five years that it’s lost 47% of its value. So if you were a government or somebody that was parking money, like most 60, 40 portfolios have money in bonds, they’ve lost 50%, almost 50% of their money in five years.

The bedrock of the global financial system is losing value at a rapid rate, 50% in five years. That is the game that’s losing. That’s the game that’s being destroyed, but there’s a new game in town. What am I talking about? It’s sort of like discovering fire. It’s like a zero to one moment. And what we’re seeing is that a new type of company taking a new type of asset and making a refinery model out of it. What do I mean? What do I mean by a refinery model? We’re taking a raw asset and we’re creating new things from it.

All right. We’re taking one asset and we’re turning that asset into now multiple products. All right. It’s sort of like financial alchemy, except for it’s not alchemy. It’s more of like a refinery. What am I talking about? We’re talking about new companies sort of like what microstrategy is doing. I shouldn’t say sort of like they’re the ones that are pioneering this. Now there’s dozens of companies that are doing the same things that they are. And what they’ve done is they’ve taken a new asset, a new commodity, something new, a new piece of technology like Bitcoin, and used that as a base asset to now, like a refinery, create new products on top of it that fit inside the traditional financial world.

Now specifically, they’ve created four new outputs. They’ve taken one input of Bitcoin and created four new products, four new outputs off of that. We’re talking about convertible debt, yielding instruments, Bitcoin linked equities. We’re talking about new ways to get income streams off of Bitcoin and basically amplify the amount of Bitcoin that you could buy. What are we talking about here? Let me show you how this is working. Again, if you don’t understand this, you’re going to miss one of the biggest shifts to the global financial system that maybe we’ll ever see.

Okay. Here’s what we’re talking about. They’ve taken something like Bitcoin here. That’s the input. It’s like no different than a refinery would take in oil and then they would spit out different types of fuels. So they take in Bitcoin and then they output it as different products that fit into different unique use cases for different people. Again, like oil, we can take oil and turn it into all different types of products. So we have at the top, we have the micro strategy stock. All right. So that’s just if I want common stock, I want upside volatility on that stock.

But what if I don’t? What if I want, what if I’m a debt buyer? I’m a bond buyer. I want income. Well, we have an income product here. Well, what if I want like really high yield income, like I’m a junk bond buyer? Well, we have that product down here. But what if I want like more secure income? That’s like a US treasury where it’s much more secure, senior preferred. Okay. Then I might want to hear what if I want the debt, but I want a little bit more upside. You see, there’s different flavors for all these different buyers and they’re all right here.

Let me kind of give you a different breakdown of what this looks like. So what micro strategy has done is they’ve taken Bitcoin, the input, and they’ve output four new products as of right now. And each one of these products is a little bit different. So the common stock micro strategy is leveraged Bitcoin exposure. So they get that potential upside, but there’s no income from that. And there’s also downside that comes with that. We have strike, which is paying at 8% quarterly fixed dividend, but it can convert over into the stock. So I get the upside potential.

So it’s sort of like a dividend stock. I get the 8% dividend and I get upside if the stock goes up. Then we have another one here called Stride STRD. This pays a 10% quarterly fixed non-cumulative dividend. So I get a higher income, but it’s higher up in the stack. So it’s pretty secured. And then down here, we have this new one stretch. I just did the iPhone moment where we can link it up here or in the show notes down below, and basically stretches sort of like a stable coin where I don’t have upside or downside volatility.

It always sits right around what I want, sort of like a money market fund, but it pays a nice healthy dividend depending on where it’s at somewhere in the 9% range. You see, this is what we’re talking about. Now, how has this been working out so well? Well, if you haven’t been paying attention, maybe you’ve missed it. But in the last five years, MicroStrategy, the company that’s doing this refinery model, has been the best performing asset, right? Bonds are down 4% over the last five years. Real estate’s up 6%, gold’s up 10%, S&P’s up 14%.

The MAG 7 collectively up 27%. Bitcoin is up 58% per year. These are per year returns. Sorry, I didn’t specify that. And MicroStrategy is up 100% in the last five years. What about in the last one year? Because, you know, Mark, maybe you’re cherry picking data. Well, in the last one year, we can see the outperformance of MicroStrategy as well. And so this is the financial refinery model that we’re seeing. Like I said, dozens of people are copying this now. But this is way bigger than one company like MicroStrategy. What we’re witnessing is creative structure.

What we’re witnessing is the creation of fire, the zero to one moment that now everybody will start to copy, start to duplicate. What am I talking about? Well, currently, companies like the MAG 7, maybe your business, you should have some savings, right? You have a treasury. But this is making traditional treasuries obsolete. So again, a company like your company, my business, should have some savings. And some of the biggest companies in the world have enormous savings. As a matter of fact, Berkshire Hathaway, Warren Buffett’s company, is sitting on over $348 billion, $348 billion of cash and cash equivalents, treasuries, things like that.

Amazon, $98 billion. Google, $95 billion. Microsoft, $95 billion, sitting on enormous hordes of dollars. And these dollars are losing money, unlike MicroStrategy, their asset base is making money. So what we’re seeing is a shift from using my treasury as just a way to store money, that’s losing value, to instead turn my treasury in a way to turbo charge my returns. That’s what we’re starting to see. And this is going to be the big shift that we’re about to see, where we start to see treasuries go from reserves to refineries, instead of just holding, losing value.

How do we turn that into a refinery that allows different people to get them at different products? Now, how big is a market like this? Well, we can see that right now, the universe for these would be US treasuries. So people buy US treasuries to store wealth and get a return. We have about $28 trillion sitting there. We have mortgage backed securities. So people buy into those commercial real estate mortgage backed securities or residential. There’s about almost 10 trillion sitting there. We have bonds, about five trillion sitting there, junk bonds, higher yielding, a little bit more risk, 2.6 trillion sitting there.

Dividend paying stocks, $48 trillion in dividend paying stocks. Again, people are buying the stock for a dividend, hoping for some potential upside. So we’re talking about hundreds of trillions of dollars sitting here in demand for these types of products. And over here, we have strike, strike, stride, and stretch, the four products that MicroStrategy has created, the refinery that are just tiny little blips right now. We’re talking billions of dollars that are out competing. They all pay higher yield at a higher collateral ratio. So they’re safer and they pay out more, which means they’re out competing, which means the new creation, it’s the digital camera to Kodak’s film camera.

This is what’s going on right now. And again, strategy is pioneering this, but all of those companies I showed you have enormous treasuries that they can start to turn into refineries instead of just treasuries losing money. Again, why? Because right now they’re parking them into the US treasuries, which have lost 50% in five years. And again, why is that real quick? It’s because the amount of money being added to the system is about 10% per year, which means that you need to be making at least 10% a year if you hope to keep up on it.

And again, where are you going to put that money to do that? So if I’m one of these companies, if I’m a business owner and I have money in my treasury, where do I put it? Well, I know that I need to make at least 10% a year. Here’s a list of all the assets that we have from 2015 to 2024. So for the last 10 years, this is the performance of all the major asset classes. Now, what we can see is that Bitcoin has done an average, an annual compound and annual growth rate of 80%.

The NASDAQ has done 17%. So that’s well above the 10% that we’re losing. Pretty good. The S&P 500 has done 13.9 call it 14%. So a little bit better than 10% that we’re losing, but everything else we’ve lost money in. Gold, 9%, REITs, 9.4%. We can keep going down. Commodities, 0.6%, bonds, 2.3%, high yield credit, 6.4%, but all losing money to the 10%. So all of these companies from Berkshire Hathaway to Apple to Google to Tesla that are sitting on hundreds of billions of dollars of cash sitting in assets like this that are all losing money to what the monetary supply is doing.

They’re all going to be looking for a new model. That’s how big this is. All right. Now this all sits within the quantum wealth window that I talk about regularly. There’s a 50 year cycle that we see technology develop and it’s happened. Now we’re on our sixth time. This has happened in the last 300 years. The reason why I like to bring that up over and over is because the more times a cycle repeats, the more dependable the cycle is. And we know that there’s four distinct phases that each one of these happen within.

The first phase is where the new technology is first created. We call that the eruption phase. The second phase, which we’re in right now by this green arrow, is the frenzy phase. Now it’s important to understand that each one of these gives us a different blueprint, a different model to be invested through. And in the eruption phase is the retail phase. This is when Bitcoin came onto the scene. It’s when we had the rise of cryptocurrencies and retail investors came into the space. But in the frenzy phase, this is where the institutional investors come in.

This is where the sovereign governments come in. And that’s exactly what we’re seeing right here. And when we overlay what’s called an S curve on top of that, which is how we measure new technology adoption, we can see that in this part of the cycle is where we have the fastest growth, which means not only the fastest adoption, but also the most amount of money coming in. And so for a lot of people who think this opportunity is a fad or they think that it’s too late, you can see that when you look at it through that lens, it is just getting started.

Okay. So what are you gonna do with all this? Great. Now that you’ve got it, right? Some information, some knowledge, but what are you gonna do with it? Well, a couple of things. Number one, you can buy Bitcoin directly. That would be the foundation. If I was going to build a pyramid, I’d want to buy some Bitcoin directly because as these companies start using their treasury more like a refinery and start changing the base layer of the financial system, it’s going to push Bitcoin up. Number two, you can buy equity in some of these Bitcoin treasury companies like MicroStrategy, like MetaPlanet, like dozens of others that have come out since then that are going up 500%, some are going up 5,000% in months.

They’re going really fast. And then three, you can use the same strategy for your own business. Again, you have, hopefully you have a business. Maybe it has some money. What do you do with the treasury? Where does it sit? Is it sitting in cash, losing money? Are you putting into as treasuries or do you want to use your own treasury more like a refinery model like these are doing? Now, if you want to know a little bit more about these companies and why I made a video calling this the iPhone moment, you might want to watch this video right here and I’ll see you over there.

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