Original subtitles

So, at the recent Eastern Economic Forum in Russia, one of Vladimir Putin's closest

advisors said something that got a lot of attention.

He said, the United States is preparing to use crypto and stablecoins to secretly

devalue its entire 37 trillion dollar debt.

He says the United States is plotting to put that debt into a crypto cloud which

would reset the system, basically leaving the rest of the world holding the bag.

Now, this might sound like some crazy theory, but a version of this story has

been said before by billionaire CEO of MicroStrategy, Michael Saylor.

He actually advised President Trump to, quote, dump all the U.S.

gold and buy Bitcoin.

Dump your gold, sell all the U.S.

gold, buy Bitcoin, then the trade is free because you

could buy 5 million Bitcoin for the cost of the gold.

And you will demonetize the entire gold asset

class and our enemies hold gold in their banks.

So, their assets would go to zero, our assets would go to $100 trillion,

and we would control the world's reserve capital

network as well as the world's reserve currency network.

The $37 trillion question though is, how

realistic is this and would this actually work?

Because I think the answer is, it's not just going to work.

It's going to be inevitable, and I think it's going to happen.

Not exactly in that way, but that's what I'm going to help explain in today's video.

I want to show you what Putin's advisor exactly said and how the U.S.

will devalue its $37 trillion worth of debt with stablecoins and Bitcoin.

It's a really interesting story.

So, with that said, let's get into it.

Hi, my name is Andrei Jikh.

Hope you're doing well.

Come for the finance and stay for the Bitcoin.

So, okay, first question is, who is the person that said all this?

Now, his name is Anton Kobayakov, and he is the

senior advisor to Russia's President Vladimir Putin.

And he's been in that job for over a decade.

He basically helps with Russia's messaging at

big events like the Eastern Economic Forum.

Now, in his speech, he said that the U.S.

is trying to rewrite the rules of the golden crypto markets and that the

ultimate goal of the United States is to push the

whole world into what he called the crypto cloud.

And once the world is there, he says it's going to move its huge $37 trillion worth

of national debt into assets like stablecoins and then devalue it,

which would essentially wipe the slate clean.

Okay, second question then is, what does it actually mean to devalue the debt?

And how does that work?

So, here it goes.

Imagine that the whole world is just worth this $100 bill.

Let's say I borrow all of it, right?

Every single dollar.

And now I owe, and I have to pay it back.

The problem is, paying it back the hard way means

I have to pay it back and give it back, right?

But luckily, I have a special superpower

because I control the world reserve currency.

So instead of repaying it back with the same $100 bill I just borrowed,

I could just create another $100 bill out of thin air.

Well, now the world doesn't just have $100 in circulation anymore.

It now has $200, which is now trying to buy all the same

things in the world because we didn't make more stuff.

So what happens next?

The price of all those things goes up, right?

Things like real estate, stocks, gold, especially the things everybody wants.

They all go up.

The groceries you used to pay a dollar for now cost two.

Everything becomes more expensive because again, the supply

of money doubled but the supply of stuff stayed the same.

That's inflation.

Now, when I go to give you back your $100,

it looks like I just repaid you back in full.

But in reality, I cheated because now your $100 bill doesn't buy you the same amount

of stuff because I diluted the money so it now only buys you half as much.

I devalued the debt.

Now, what most people don't realize though is that this is

literally the oldest trick in the book in a lot of ways.

It's how the United States has been paying for its debt this whole time.

Devaluing doesn't mean defaulting.

It doesn't mean not paying back.

It means to lower the real value of that debt

through inflation or currency manipulation.

And this has happened over and over again throughout time.

After World War II, during the inflationary 1970s and even more recently

after the pandemic when we created a ton of new

money and then everything went up in price, right?

More dollars chasing the same amount of stuff.

So when Russia's advisor says that the US might use crypto

to devalue its debt he's not telling us anything new, right?

He's describing something the US has been doing for a really long time.

Now, if you take that same trick I just explained and you push it out to the rest

of the world that's what stablecoins let you do.

And just to be clear this isn't literally exchanging the 37 trillion into

stablecoins it's using dollar pegged stablecoins

backed by treasuries to spread liabilities globally.

When those dollars are inflated the loss gets shared by

anyone holding the tokens but we'll get into that later.

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But now, here's arguably the most important thing you'll ever understand

about the economy and this is credit to Jeff Booth for this one.

Just remember this all the time.

The natural state of the economy is deflationary.

So what does that mean?

Well, it means if the amount of money in the entire world stayed the same,

like let's say there was only ever this $100 bill in the entire world, right?

And it was always that amount.

Over time, as technology gets more efficient, as we get better and better at

making stuff, the price of everything would naturally go down.

Things would get cheaper because productivity goes up.

But the money supply stays the same.

That is the natural order of the universe.

It's decay.

Things get cheaper over time.

And that's how it should be.

But if you think about it, that's not how the

world we live in actually works for some reason.

And that's because governments can make more money.

And when they do, that's when you hear, oh, wait a minute, gold, real estate,

stocks, Bitcoin.

That's hit an all-time high.

But the reality is it's not really that those assets are going up in price.

What's really happening is that the dollar's

going down because we're making more of them.

So it now takes more of them to buy the same thing.

And when the new money floods the system, all that extra liquidity, as it's called,

has to find a home.

It has to find a place to go so that it doesn't become worth less.

So it gets put into things like real estate, stocks, gold, Bitcoin,

which is also why over the long run, those assets look like they go up forever.

In reality, they're just holding their purchasing power while the money that's

underneath all of that gets weaker and weaker.

So then the question is, what if you can expand this

superpower, you can widen the same trick beyond the U.S.

borders.

That's where stablecoins come in.

Okay, but hold on.

If the U.S.

can already devalue its debt with regular inflation, what

does it matter if it can do the same with stablecoins, right?

This is why Russia's advisor thinks the U .S.

will actually do this.

The answer comes down to distribution and control.

You see, when the U.S.

inflates the dollar, the economy starts to feel the pain right away.

We all see the higher grocery bills, right, the more expensive house prices,

the energy costs going up, potentially higher interest rates to cool it down,

those CPI and consumer price index reports go up and then people get upset, right?

But stablecoins, they changed that equation because

stablecoins park reserves in short-term U.S.

treasuries so the demand for dollars and treasuries can actually go up as adoption

grows making the whole thing kind of self-reinforcing.

Every time someone uses USDT or USDC throughout the rest of the world they're

basically holding a digital IOU backed by U.S.

treasuries.

That means they are indirectly helping fund

America's debt without actually buying U.S.

treasuries, right?

So if the U.S.

devalues its debt through inflation the burden doesn't just hit American citizens

it gets exported worldwide through the stablecoin system.

So inflation then becomes kind of a shared tax that stablecoin holders everywhere are

forced to pay because their digital dollars

also lose purchasing power at the same time.

Now this is also technically true of today's system because dollars are

everywhere throughout the world but this would become a much

bigger market that would also exist on people's smartphones.

And here's the other piece of the puzzle stablecoins can look neutral because they

could be created by private companies, not just the government.

What that means is they don't carry the same political baggage

that is associated with the Federal Reserve or the Treasury.

And under the Genius Act it says only approved issuers like banks, trust

companies or non-bank firms can get special approval they can issue regulated

dollar-backed stablecoins in the United States.

So if Apple or Meta wanted to they could create their own currency like Metacoin,

right?

All they got to do to get approval is just suck up to the president a little, right?

How much are you spending would you say over the next few years?

I think it's probably going to be something

like I don't know, at least 600 billion dollars.

Show your loyalty, spend a little bit of money and that's why stablecoins are going

to play such a huge role in the devaluation of our debt.

It's kind of CBDC level of control without the CBDC brand.

Now here's why the rest of the world wants no part in any of this.

And we know it doesn't because of how much gold the world has been buying.

That's what's happening to gold right now.

Countries are like we don't want your stablecoins give us gold because it was

the agreed upon standard for thousands of years.

So let's just go back to that.

But why don't they want any part of this, right?

It's because even though stablecoins are supposed to be backed one-to-one by real

US assets like dollars or treasuries in theory every single stablecoin in

circulation should have a real dollar or bond equivalent sitting right behind it

the problem is there's no way for a person or a foreign

government to audit that claim with 100% certainty.

Companies like Tether and Circle release reports but you have to trust the issuer

and the auditor and they're all mostly US based.

And when it comes to trust especially when it comes to

trillions of dollars that's a big ask between countries.

Even if one day blockchain technology makes it possible to fully audit those

reserves in real time that still doesn't really solve the

bigger problem which is that the US can always change the rules.

Remember the government once promised that dollars would always be redeemable for

gold and then in 1971 Nixon just rug pulls everyone.

That link was cut.

So from the world's perspective that was kind of like the ultimate rule change.

That was the promise of redemption and then just kidding.

So a trust us token isn't really going to cut it.

There's nothing technical that stops the US from doing

the exact same thing but this time with stablecoins.

That's why there is so much distrust in the

world about moving to this new digital system.

So then the next question is will the US actually do this then?

I actually think it's more possible maybe even inevitable that the US is already

experimenting with this idea just not in the way that we hear about it.

For example Michael Saylor he was very public, right?

He's advised Donald Trump and his family that

America should have a Bitcoin strategic reserve.

His plan was if the US sold off all its gold and bought Bitcoin it would crush

gold prices it would hurt competing countries like China and Russia and at the

same time it would send Bitcoin's price way

up and recapitalize America's balance sheet.

But in the end that's not what ended up happening.

Instead, during Trump's presidency the idea of this US Bitcoin reserve it ended

up being just an idea that was teased but it

was never fully something that became real.

The US said it would never use taxpayer dollars to

buy any Bitcoin and it really hasn't been buying any.

At least not that we know of publicly.

So I don't think it's going to happen the way

Michael Saylor was advising publicly it would happen.

But this is where the private angle comes in.

Because while the government might not be openly buying Bitcoin there's a back door.

There's another way this could happen behind the scenes.

So think about MicroStrategy, right?

This stock.

The company has basically become a public Bitcoin proxy with Michael Saylor.

They've been buying Bitcoin non-stop.

They now hold hundreds of thousands of Bitcoins.

So what if instead of the US government buying Bitcoin directly and then risking

global panic what if it's easier to just let a corporation do it first?

That way it doesn't look like some central bank

operation and no one's really paying attention.

And then later if Bitcoin really does become a strategic asset the US government

could take in and take a partial stake in MicroStrategy

the same way it took 10% ownership in companies like Intel.

So this precedent already exists.

I mean, think about it.

Why would the US openly risk crashing the gold market with a

trillion dollar Bitcoin purchase or a forced stablecoin rollout?

Why would it sell its gold if it still has any, right?

It's way easier and much smarter just to let private companies do the heavy lifting

first let them experiment and then the US government

could come in and adopt what's already working.

That's how the US has always played the game.

Innovation starts privately and when it becomes way too

important to ignore it gets absorbed nationally, right?

This way it's way more subtle way more gradual and it's

kind of deniable until the day it becomes official.

But the point I'm trying to make is that there's a lot

of ways that this could happen and probably will happen.

So yes, the Russian advisor is 100% correct in his assumption that that's what

the US will most likely do at some point in the

future if it cares about solving its national debt.

But whatever ends up happening either way, I'd love to hear your thoughts.

Let me know down in the comments below.

I hope you have a wonderful rest of your day.

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Bye-bye.