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Would you like to inspect the original subtitles? These are the user uploaded subtitles that are being translated: 1 00:00:21,400 --> 00:00:23,400 Hey, Joe. Hey. 2 00:00:23,400 --> 00:00:24,960 What's this all about? 3 00:00:24,960 --> 00:00:28,240 Well, we have a problem, and it's a very big problem. 4 00:00:28,920 --> 00:00:31,920 And unfortunately, most people aren't aware of it. 5 00:00:32,360 --> 00:00:34,800 It doesn't matter what your personal views are, 6 00:00:34,800 --> 00:00:37,800 your politics, your religion, or where you are. 7 00:00:38,600 --> 00:00:41,400 And once you see the problem, you can't unsee it. 8 00:00:41,400 --> 00:00:44,040 It's like a it's like a one way deal. 9 00:00:44,040 --> 00:00:46,080 But thankfully we also have the solution. 10 00:00:46,080 --> 00:00:49,560 And it's this solution that I'm so passionate about sharing. 11 00:00:49,960 --> 00:00:54,400 And it's what makes me just so optimistic for the future. 12 00:00:55,560 --> 00:00:58,080 The challenge I find, though, is 13 00:00:58,080 --> 00:01:01,080 how can anybody fully value a solution 14 00:01:01,200 --> 00:01:04,200 unless they understand what the problem is? 15 00:01:05,600 --> 00:01:08,680 And so I put this presentation together for some friends. 16 00:01:09,440 --> 00:01:13,760 And it assumes no knowledge other than just being human beings and 17 00:01:13,760 --> 00:01:14,640 life experience. 18 00:01:16,680 --> 00:01:18,120 And encourage me then to to 19 00:01:18,120 --> 00:01:22,000 make this presentation into video so I can share it with everyone. 20 00:01:22,440 --> 00:01:25,440 So I hope you enjoy. 21 00:01:29,920 --> 00:01:32,920 Welcome to what's the problem? 22 00:01:33,200 --> 00:01:35,520 So what is the problem? 23 00:01:35,520 --> 00:01:36,440 Are too many. 24 00:01:36,440 --> 00:01:38,200 Unfortunately, 25 00:01:38,200 --> 00:01:41,520 I probably could have written twice as many things down on this slide. 26 00:01:42,600 --> 00:01:46,560 I think we all have that sense of unease. 27 00:01:47,400 --> 00:01:50,920 We all feel internally that things are not moving in the right direction 28 00:01:51,480 --> 00:01:54,520 in our lives, in the world, like things are becoming harder. 29 00:01:55,320 --> 00:01:57,400 Not easy. 30 00:01:57,400 --> 00:02:01,880 And I think for most of us, we recognize some elements of these things 31 00:02:01,880 --> 00:02:05,160 on the screen as touching our lives directly or indirectly. 32 00:02:06,160 --> 00:02:09,160 And what I'm here today to show you 33 00:02:09,600 --> 00:02:12,720 is that all these things may seem unconnected. 34 00:02:13,080 --> 00:02:13,760 They're really not 35 00:02:14,920 --> 00:02:17,920 the primary cause of all of this 36 00:02:18,960 --> 00:02:21,280 is the quality of our money. 37 00:02:21,280 --> 00:02:23,320 And we're going to do this through a story. 38 00:02:23,320 --> 00:02:27,760 So imagine this is far off world where you have hundreds of smart people 39 00:02:27,760 --> 00:02:33,160 traveling on a ship, and this ship gets wrecked on a deserted island. 40 00:02:33,840 --> 00:02:36,120 This deserted island is so far from everywhere else 41 00:02:36,120 --> 00:02:37,760 they're effectively cut off. 42 00:02:37,760 --> 00:02:40,040 But the island is resource rich. 43 00:02:40,040 --> 00:02:43,440 It has everything they could possibly need to rebuild society. 44 00:02:43,800 --> 00:02:47,200 But because these people have come from an advanced civilization, 45 00:02:47,800 --> 00:02:50,800 they know exactly where they ultimately going to get back to. 46 00:02:51,360 --> 00:02:54,360 But now they're starting again with nothing, 47 00:02:54,400 --> 00:02:58,040 but also clears that they need some way of trading with each other 48 00:02:58,040 --> 00:02:59,080 once they start to rebuild. 49 00:02:59,080 --> 00:03:03,240 So they prioritize deciding what to use for their new money. 50 00:03:03,480 --> 00:03:06,040 And suspend your disbelief slightly further in that they have, 51 00:03:06,040 --> 00:03:09,000 despite not having anything, the ability to create 52 00:03:09,000 --> 00:03:12,000 whatever monetary system they want with whatever characteristics. 53 00:03:12,720 --> 00:03:16,200 So the first question they need to answer is what makes good money? 54 00:03:17,440 --> 00:03:18,880 And there are seven things. 55 00:03:18,880 --> 00:03:22,120 So these guys have the ability to create whatever they want. 56 00:03:22,120 --> 00:03:25,120 So instead of just creating good money, they create the perfect money. 57 00:03:25,640 --> 00:03:28,440 And the perfect money is scarce, 58 00:03:28,440 --> 00:03:31,320 which means it has a fixed supply forever 59 00:03:31,320 --> 00:03:34,440 and is instantly and cost lessly verifiable by everybody. 60 00:03:35,240 --> 00:03:38,320 So if everybody can check it whenever they want at no cost, 61 00:03:39,800 --> 00:03:43,200 then you can verify for yourself that nobody's creating any extra. 62 00:03:44,240 --> 00:03:47,280 It needs to be portable so you can effortlessly 63 00:03:47,600 --> 00:03:50,600 move and story with negligible costs. 64 00:03:51,440 --> 00:03:53,240 It needs to be divisible. 65 00:03:53,240 --> 00:03:56,240 And the perfect money would be infinitely divisible. 66 00:03:56,520 --> 00:03:57,960 It needs to be durable. 67 00:03:57,960 --> 00:03:59,760 It can't rot or go off. 68 00:03:59,760 --> 00:04:01,080 It can't deteriorate. 69 00:04:01,080 --> 00:04:04,080 So the perfect money exists forever. 70 00:04:04,800 --> 00:04:09,160 It's fungible, which means every piece is forever the same as every other piece. 71 00:04:10,920 --> 00:04:12,560 It needs to be acceptable 72 00:04:12,560 --> 00:04:16,920 so everyone, anywhere can both send and receive. 73 00:04:18,200 --> 00:04:21,520 And the really important one is it needs to be censorship resistant. 74 00:04:22,800 --> 00:04:24,800 You hold it yourself. 75 00:04:24,800 --> 00:04:27,800 Nobody can take it away from you without your permission. 76 00:04:27,800 --> 00:04:30,800 And no one can stop you sending or receiving. 77 00:04:32,600 --> 00:04:33,440 So this is great. 78 00:04:33,440 --> 00:04:36,440 They decide on perfect money. 79 00:04:36,440 --> 00:04:38,880 Then there's a disagreement. 80 00:04:38,880 --> 00:04:41,880 Two leaders emerge from within the population. 81 00:04:42,600 --> 00:04:45,240 The first Satoshi. 82 00:04:45,240 --> 00:04:48,240 He says, well, given these, the characteristics of perfect money, 83 00:04:48,680 --> 00:04:51,680 that's going to be true today, due tomorrow and true forever. 84 00:04:52,200 --> 00:04:54,560 So we should lock them. And you should never change. 85 00:04:54,560 --> 00:04:58,520 Whereas for your talo he says, well, I get what I get. 86 00:04:58,560 --> 00:05:01,480 This is the characteristics of perfect money and I totally agree. 87 00:05:01,480 --> 00:05:03,960 But what if there's an emergency? 88 00:05:03,960 --> 00:05:05,520 What if we need to change something? 89 00:05:05,520 --> 00:05:07,720 What if the people we put in charge of our money 90 00:05:07,720 --> 00:05:10,720 feel like it's not working and need to make an adjustment? 91 00:05:11,160 --> 00:05:15,520 I think we should have the perfect money, but we should also have a big red button 92 00:05:16,200 --> 00:05:19,760 which allows someone to press it and change any of the characteristics 93 00:05:20,000 --> 00:05:22,920 if we need to. Of course, no one ever will. 94 00:05:22,920 --> 00:05:23,880 But just in case. 95 00:05:26,040 --> 00:05:29,000 This becomes an irreconcilable disagreement. 96 00:05:29,000 --> 00:05:30,240 So a fairly drastic solution. 97 00:05:30,240 --> 00:05:33,440 But they build a huge wall right down the middle of this island, and on one side 98 00:05:34,320 --> 00:05:38,800 they create the currency called satoshis, which is perfect money always. 99 00:05:39,200 --> 00:05:42,200 And on the other side, a fear tellers, 100 00:05:42,600 --> 00:05:45,600 which is perfect money, but with the option to change it. 101 00:05:45,840 --> 00:05:48,720 Now this wall is so big it cuts off the communication 102 00:05:48,720 --> 00:05:51,160 and the trade between both sides on the island. 103 00:05:51,160 --> 00:05:54,160 So effectively they're cut off from one another. 104 00:05:54,360 --> 00:05:56,280 So to begin with, 105 00:05:56,280 --> 00:05:58,680 nobody has anything on either side of the island. 106 00:05:58,680 --> 00:06:01,080 So everyone starting from zero. 107 00:06:01,080 --> 00:06:03,680 And initially people have to be self-sufficient. 108 00:06:03,680 --> 00:06:07,240 Each person is fishing for their food, cutting down 109 00:06:07,240 --> 00:06:11,000 trees for the wood to make fires, and also for houses. 110 00:06:11,000 --> 00:06:12,600 And then they're also building their own shelters. 111 00:06:13,560 --> 00:06:17,080 Now, even though they have perfect money, there's very limited trading here 112 00:06:17,080 --> 00:06:18,600 because people are working hard 113 00:06:18,600 --> 00:06:22,320 just to satisfy their day to day needs across all of these goods. 114 00:06:23,160 --> 00:06:24,640 But people are different. 115 00:06:24,640 --> 00:06:27,320 Some people are better at some things than others. 116 00:06:27,320 --> 00:06:30,320 And so people quickly realize that if I spend my time 117 00:06:30,600 --> 00:06:33,600 focusing on the things I'm good at, I'm reducing the amount of time 118 00:06:33,600 --> 00:06:38,800 I spend on things that I'm poorer, then I can contribute more to society. 119 00:06:38,880 --> 00:06:42,280 I can increase the amount of goods I can provide to society 120 00:06:42,280 --> 00:06:44,640 in the same amount of time as the average person. 121 00:06:44,640 --> 00:06:48,040 So the woodcutter spends all his time now cutting downward. 122 00:06:48,240 --> 00:06:49,120 He stops fishing. 123 00:06:49,120 --> 00:06:51,080 He starts building shelters. 124 00:06:51,080 --> 00:06:53,320 And because he's spending his time cutting down wood, 125 00:06:53,320 --> 00:06:57,160 he increases the quantity of wood available to everyone else versus three 126 00:06:57,160 --> 00:07:00,240 people spending a third of their time each because he's good at it. 127 00:07:01,200 --> 00:07:01,520 And not 128 00:07:01,520 --> 00:07:05,320 only does the increase in the quantity of wood available reduce 129 00:07:05,320 --> 00:07:09,120 the price of wood for every potentiality, the qualities also high. 130 00:07:09,800 --> 00:07:11,040 He's better at doing it. 131 00:07:11,040 --> 00:07:13,960 He produces a higher quality output. 132 00:07:13,960 --> 00:07:16,960 So prices fall and quality increases. 133 00:07:17,080 --> 00:07:19,320 And not only that, he's not the only woodcutter. 134 00:07:19,320 --> 00:07:20,800 There are multiple woodcutters, 135 00:07:20,800 --> 00:07:24,200 so they're all competing to supply wood to everybody else. 136 00:07:24,840 --> 00:07:28,200 And they're competing at price and in terms of quality. 137 00:07:29,360 --> 00:07:31,600 And now what happens is, because the woodcutter 138 00:07:31,600 --> 00:07:34,440 needs of the goods to survive, he has to sell the wood to buy 139 00:07:34,440 --> 00:07:38,000 fixtures, sell the wood to pay for the services of the home builder. 140 00:07:38,960 --> 00:07:42,080 So now everybody is actively trading this perfect money. 141 00:07:43,440 --> 00:07:45,280 Now, because processes continue 142 00:07:45,280 --> 00:07:48,720 to improve, the woodcutter can now satisfy the needs of the rest of the population. 143 00:07:49,160 --> 00:07:52,720 For wood in a small amount of time, he can then take that time 144 00:07:53,720 --> 00:07:56,280 and think about his own processes, his own innovations. 145 00:07:56,280 --> 00:07:58,920 Maybe he can make Crittendon Wood even more efficient. 146 00:07:58,920 --> 00:08:03,080 And if he does that, he drives prices lower, it drives quality higher. 147 00:08:03,880 --> 00:08:06,120 Maybe he reaches the end of his innovation 148 00:08:06,120 --> 00:08:09,800 within his wood cutting and then uses the excess money, excess capital. 149 00:08:09,800 --> 00:08:12,600 He has to invest in other people. 150 00:08:12,600 --> 00:08:15,240 Maybe he lent it to the fisherman, who then builds a boat 151 00:08:15,240 --> 00:08:19,160 to increase the amount of fish the fishermen can catch for everybody. 152 00:08:20,280 --> 00:08:24,360 So what happens over time in a free market with perfect money? 153 00:08:24,680 --> 00:08:28,680 Prices go down forever and quality goes up forever. 154 00:08:30,160 --> 00:08:32,640 So what people see on both sides of the island 155 00:08:32,640 --> 00:08:35,760 is that the purchasing power of their money starts to increase. 156 00:08:37,120 --> 00:08:39,960 Goods cost less tomorrow than they do today. 157 00:08:39,960 --> 00:08:41,720 So the price of tomorrow is lower. 158 00:08:42,800 --> 00:08:44,240 The purchasing power 159 00:08:44,240 --> 00:08:47,480 of both currencies is increasing at about 3% a year. 160 00:08:48,520 --> 00:08:50,840 And this lifts the quality of life. 161 00:08:50,840 --> 00:08:54,600 Life becomes cheaper and cheaper over time for everybody, 162 00:08:55,080 --> 00:08:58,760 not just those people who are most productive in society. 163 00:08:59,600 --> 00:09:01,920 But the key thing is the money itself 164 00:09:01,920 --> 00:09:04,920 is becoming more valuable over time. 165 00:09:06,600 --> 00:09:08,400 That is, 166 00:09:08,400 --> 00:09:10,800 until these guys come up. 167 00:09:10,800 --> 00:09:13,800 So now, because the society is growing and the population is growing, 168 00:09:14,280 --> 00:09:17,280 both sides of the island elected government. 169 00:09:17,600 --> 00:09:20,640 Now, it doesn't matter if the government is left or right, 170 00:09:21,000 --> 00:09:23,040 big, small, up or down doesn't matter. 171 00:09:23,040 --> 00:09:26,040 They are all the same when it comes to this. 172 00:09:27,400 --> 00:09:29,760 Now, however well-run the government is, 173 00:09:29,760 --> 00:09:32,760 inevitably it will hit a deficit at some point. 174 00:09:32,920 --> 00:09:36,160 And that means it's spending more than it's receiving. 175 00:09:37,520 --> 00:09:39,920 And that could be through mismanagement, 176 00:09:39,920 --> 00:09:42,720 but it could just be through external circumstance, 177 00:09:42,720 --> 00:09:44,800 like a natural disaster or something like this. 178 00:09:44,800 --> 00:09:49,200 The causes are not important, but it will happen over the course of time. 179 00:09:49,320 --> 00:09:51,360 Inevitably. 180 00:09:51,360 --> 00:09:54,360 But now we see a divergence across both sides of the island. 181 00:09:54,480 --> 00:09:55,400 Satoshi. 182 00:09:55,400 --> 00:09:57,840 He only has two choices here. 183 00:09:57,840 --> 00:10:01,720 To balance the budget, he needs to either raise taxes or cut spending, 184 00:10:03,320 --> 00:10:05,360 or maybe a combination of the two. 185 00:10:05,360 --> 00:10:08,360 With Vitello, he has exactly the same choices, 186 00:10:08,400 --> 00:10:11,240 but he also has a big rip up. 187 00:10:11,240 --> 00:10:14,240 And the important thing here is that both up for reelection, 188 00:10:14,720 --> 00:10:17,280 a fatal blow knows that if he raises taxes 189 00:10:17,280 --> 00:10:20,280 or he cut spending, it's going to cost him votes. 190 00:10:20,440 --> 00:10:24,600 So just this time, he decides to press the big red button 191 00:10:25,080 --> 00:10:28,000 and print a little bit of extra money for the government. 192 00:10:29,360 --> 00:10:30,840 Okay, so what are the consequences? 193 00:10:30,840 --> 00:10:33,840 Well, for Satoshi. Not great. 194 00:10:33,840 --> 00:10:36,680 He cannot hide those changes from the population 195 00:10:36,680 --> 00:10:38,280 because they're paying more in taxes, 196 00:10:38,280 --> 00:10:41,400 or they're getting less back from the government from its spending. 197 00:10:42,120 --> 00:10:44,520 So he loses the election, 198 00:10:44,520 --> 00:10:48,240 but government reduces in size naturally. 199 00:10:48,720 --> 00:10:51,720 So now overall, the efficiency in the economy is increased. 200 00:10:51,760 --> 00:10:55,400 But not only this, the social balance is improved 201 00:10:55,400 --> 00:10:59,320 within the economy because people now realize there is no free money. 202 00:11:00,360 --> 00:11:00,960 Taxes. 203 00:11:00,960 --> 00:11:03,360 They need to balance spending. 204 00:11:03,360 --> 00:11:06,400 But the important thing is prices continue to fall 205 00:11:06,880 --> 00:11:09,880 and quality continues to increase. 206 00:11:10,440 --> 00:11:13,440 Now, for fear of great news, he gets reelected. 207 00:11:13,920 --> 00:11:16,920 And to start with, it's consequence free. 208 00:11:17,080 --> 00:11:19,080 But he thinks this is the greatest thing ever. 209 00:11:19,080 --> 00:11:20,880 I get reelected and there's no downside. 210 00:11:23,520 --> 00:11:25,760 But something's changed. 211 00:11:25,760 --> 00:11:27,160 So what's happened? 212 00:11:27,160 --> 00:11:30,600 Voters press the big red button, which is printed to money 213 00:11:30,600 --> 00:11:33,160 for the government, which is the base of the currency. 214 00:11:33,160 --> 00:11:34,360 So what does that mean? 215 00:11:34,360 --> 00:11:37,760 He's increased the amount of money in the economy overnight, 216 00:11:39,200 --> 00:11:41,920 but he hasn't increased the amount of goods and services available 217 00:11:41,920 --> 00:11:43,520 in the economy overnight. 218 00:11:43,520 --> 00:11:46,720 So now there's more fear tellers washing around compared to yesterday 219 00:11:46,720 --> 00:11:49,800 for each piece of the goods and services. 220 00:11:51,400 --> 00:11:53,800 And this has three major inputs. 221 00:11:53,800 --> 00:11:56,240 The first is a distortion of price signals. 222 00:11:56,240 --> 00:11:59,800 The second is that increases input costs for businesses. 223 00:11:59,800 --> 00:12:02,800 And the third it leads to asset inflation. 224 00:12:02,880 --> 00:12:05,520 And that first one distorting price signals 225 00:12:05,520 --> 00:12:08,960 well prior to Vietnam pressing the big red button here, 226 00:12:10,320 --> 00:12:13,560 all price changes in the economy were purely a function of demand 227 00:12:13,720 --> 00:12:16,920 and supply because this was a free market with perfect money. 228 00:12:17,880 --> 00:12:19,240 But what's happened now 229 00:12:19,240 --> 00:12:23,360 is that money has entered the economy, not to everybody equally, 230 00:12:23,920 --> 00:12:26,920 or even in proportion to the amount of money everybody holds. 231 00:12:27,120 --> 00:12:29,760 The money has entered the economy via the government, 232 00:12:29,760 --> 00:12:32,880 and it enters via the government into the accounts 233 00:12:32,880 --> 00:12:36,760 of companies and people connected directly or indirectly to the government, 234 00:12:37,440 --> 00:12:41,560 to what Vitello starts to see as price increases in certain parts of the economy. 235 00:12:42,720 --> 00:12:45,720 So the signal to everybody else in the economy 236 00:12:46,000 --> 00:12:48,960 is that there's an imbalance of supply and demand 237 00:12:48,960 --> 00:12:51,000 just in these sectors. 238 00:12:51,000 --> 00:12:53,840 So you see a misallocation of capital 239 00:12:53,840 --> 00:12:57,240 by the entrepreneurs in the market caused by the money printer. 240 00:12:57,480 --> 00:12:59,720 But not only that, it's human capital. 241 00:12:59,720 --> 00:13:00,760 It's smart people. 242 00:13:00,760 --> 00:13:04,200 It's active people who are trying to be productive gets sucked in 243 00:13:04,200 --> 00:13:07,960 closer to the government and not servicing the rest of the economy. 244 00:13:08,960 --> 00:13:11,880 The second is that business input costs increase. 245 00:13:11,880 --> 00:13:16,480 Now. Every single business in theater, this country has at least a human being 246 00:13:16,920 --> 00:13:21,240 and some raw material inputs like energy or even some harder raw materials. 247 00:13:22,080 --> 00:13:25,080 Now, because the cost of these things have gone up. 248 00:13:25,840 --> 00:13:29,720 These businesses now need to try and change something about their product, 249 00:13:29,800 --> 00:13:33,880 to maintain the small profit margins that ensure that they can continue 250 00:13:33,880 --> 00:13:35,320 in business. 251 00:13:35,320 --> 00:13:36,880 Now, the first and most obvious one 252 00:13:36,880 --> 00:13:39,880 is just to pass on the price increase to the customer. 253 00:13:39,960 --> 00:13:43,280 The second is to keep the price the same, 254 00:13:44,560 --> 00:13:47,280 the quality the same, but just shrink the product. 255 00:13:47,280 --> 00:13:51,480 So instead of having 100g, it's now 90g, but for the same price. 256 00:13:52,560 --> 00:13:55,360 Or the third one is to reduce the input cost. 257 00:13:56,360 --> 00:13:56,800 Now this 258 00:13:56,800 --> 00:13:59,800 is where consumer inflation comes from. 259 00:14:00,080 --> 00:14:02,760 This is the only source of consumer inflation. 260 00:14:02,760 --> 00:14:07,040 Is the money printer causing businesses to make these changes. 261 00:14:07,800 --> 00:14:11,600 But if a business passes on the price increase outright 262 00:14:12,000 --> 00:14:15,480 or it shrinks the product and the customer not just needs to buy more of it 263 00:14:15,480 --> 00:14:18,480 to satisfy the fact that they needed 100g, not like two tons. 264 00:14:18,760 --> 00:14:21,560 Both of those things reduce affordability. 265 00:14:21,560 --> 00:14:23,600 So the population is becoming poorer. 266 00:14:23,600 --> 00:14:26,360 They're going to have less disposable income. 267 00:14:26,360 --> 00:14:29,360 Despite buying the same as what we bought yesterday, 268 00:14:30,640 --> 00:14:34,080 if instead the business chooses to keep the price the same 269 00:14:35,000 --> 00:14:37,400 besides the same, but just reduce the cost. 270 00:14:37,400 --> 00:14:41,400 The most obvious thing to do is just to fire people, which leads to unemployment. 271 00:14:42,440 --> 00:14:44,640 And now there are fewer people with jobs 272 00:14:44,640 --> 00:14:47,640 which reduces the overall affordability for the population. 273 00:14:47,920 --> 00:14:49,360 If you tell us well, 274 00:14:49,360 --> 00:14:53,000 but not only that, now the government's got a second issue needs to solve what 275 00:14:53,080 --> 00:14:56,040 how does it help support all these people who are recently unemployed? 276 00:14:57,120 --> 00:14:59,520 But the most insidious way 277 00:14:59,520 --> 00:15:02,520 is for companies to reduce the input quality. 278 00:15:03,240 --> 00:15:06,440 And so what Viertel starts to see is there's a rise in obesity 279 00:15:07,040 --> 00:15:08,440 across the population, 280 00:15:08,440 --> 00:15:12,040 because the food that was previously fresh and has high quality ingredients 281 00:15:12,320 --> 00:15:14,760 is replaced with ever lower quality ingredients 282 00:15:14,760 --> 00:15:16,800 and more industrialized sludge. 283 00:15:16,800 --> 00:15:18,240 So this leads to obesity. 284 00:15:18,240 --> 00:15:21,880 It also leads to a myriad of secondary health issues, 285 00:15:22,120 --> 00:15:23,640 which causes the health crisis. 286 00:15:23,640 --> 00:15:26,760 And now the government has to step in and figure out how it needs to support 287 00:15:26,880 --> 00:15:29,880 all these people who are now unhealthy. 288 00:15:30,640 --> 00:15:33,640 The third is as inflation. 289 00:15:33,840 --> 00:15:37,640 Since Vitiello press the big red button, asset prices have been going up. 290 00:15:38,280 --> 00:15:40,920 The stock market goes higher and higher and higher. 291 00:15:40,920 --> 00:15:43,600 House prices go higher and higher and higher. 292 00:15:43,600 --> 00:15:45,480 He thinks I'm some sort of economic genius, 293 00:15:47,320 --> 00:15:47,760 but they're going 294 00:15:47,760 --> 00:15:50,760 up in price because he's just created more vetoes. 295 00:15:51,480 --> 00:15:54,560 So anybody who knows that the remote for your television system, 296 00:15:54,560 --> 00:15:58,560 of course, wouldn't sell their asset for the same as they did yesterday, 297 00:15:59,000 --> 00:16:00,480 they would take into account the fact that there 298 00:16:00,480 --> 00:16:02,480 are just more fiat sellers in the system. 299 00:16:02,480 --> 00:16:05,480 So this is what is driving these prices up. 300 00:16:06,240 --> 00:16:08,160 But this asset increase is good 301 00:16:08,160 --> 00:16:11,160 for the people who own assets, but not for the people who don't. 302 00:16:12,040 --> 00:16:15,200 So he has a wealth inequality beginning to emerge across the economy. 303 00:16:15,600 --> 00:16:18,240 And not just that because house prices are now more expensive, 304 00:16:18,240 --> 00:16:20,040 the rent is more expensive. 305 00:16:20,040 --> 00:16:22,960 So he sees increased levels of homelessness 306 00:16:22,960 --> 00:16:24,360 and this increased levels of homelessness. 307 00:16:24,360 --> 00:16:25,040 Guess what? 308 00:16:25,040 --> 00:16:27,480 Require more government intervention to try and deal with. 309 00:16:28,760 --> 00:16:30,360 And now asset prices are flying. 310 00:16:30,360 --> 00:16:32,200 The stock market's on fire. 311 00:16:32,200 --> 00:16:35,160 The prevailing perception across the population is 312 00:16:35,160 --> 00:16:37,440 why would I not invest? 313 00:16:37,440 --> 00:16:39,160 Why would I just keep the money? 314 00:16:39,160 --> 00:16:41,080 I should be buying the stock market. I should be invested. 315 00:16:41,080 --> 00:16:42,840 I should be buying a second home to rent out. 316 00:16:42,840 --> 00:16:45,800 I should be buying speculative assets because they never go down. 317 00:16:45,800 --> 00:16:46,560 They just go up. 318 00:16:46,560 --> 00:16:50,920 If I don't invest, I'm a fool because the assets are going up. 319 00:16:51,360 --> 00:16:54,120 The banks are pushing ever more leverage for people pushing 320 00:16:54,120 --> 00:16:57,720 bigger and bigger mortgages to individuals, to loans to companies. 321 00:16:58,400 --> 00:17:00,880 But now that house prices have gone up, 322 00:17:00,880 --> 00:17:03,960 and now that everyone has more debt at the same time 323 00:17:03,960 --> 00:17:07,800 as families are struggling with affordability of data, their life 324 00:17:08,840 --> 00:17:11,400 is that much harder to buy a house. 325 00:17:11,400 --> 00:17:15,000 So families where previously they could have one main earner 326 00:17:15,480 --> 00:17:18,480 and afford to buy a house with a mortgage can't anymore. 327 00:17:19,120 --> 00:17:21,640 You now need both parents working, 328 00:17:21,640 --> 00:17:24,800 both parents working to afford the mortgage and afford to live. 329 00:17:25,800 --> 00:17:28,800 And when that happens, people spend less time together 330 00:17:28,800 --> 00:17:31,200 and you start to see the breakdown of the nuclear family. 331 00:17:31,200 --> 00:17:33,680 They spend less time with their children. 332 00:17:33,680 --> 00:17:36,680 They can afford to have fewer children. 333 00:17:37,840 --> 00:17:39,200 Now, because you have declining birth 334 00:17:39,200 --> 00:17:42,320 rates for you, Tello starts to see a change in his demographics. 335 00:17:42,960 --> 00:17:45,960 Across the population, fewer children are being born, 336 00:17:46,480 --> 00:17:49,480 whereas the older generations are living longer. 337 00:17:49,560 --> 00:17:52,560 And he now starts to realize that the promises he made 338 00:17:52,560 --> 00:17:54,960 to these older generations about being able 339 00:17:54,960 --> 00:17:57,960 to retire at a certain age, or having a good quality of life 340 00:17:57,960 --> 00:18:01,400 or defined income in their retirement can't be delivered. 341 00:18:01,400 --> 00:18:05,160 But for those not lucky enough to be able to buy a house, you are maybe 342 00:18:05,160 --> 00:18:05,880 stuck renting. 343 00:18:07,160 --> 00:18:08,360 Whereas before 344 00:18:08,360 --> 00:18:11,400 they could think about renting the same place for three years or five years 345 00:18:12,000 --> 00:18:14,400 because the rent goes up too much every year, 346 00:18:14,400 --> 00:18:17,400 and now they're thinking about one year, maybe two years, 347 00:18:17,720 --> 00:18:19,560 you're planning less for the future. 348 00:18:19,560 --> 00:18:22,960 Maybe you're putting off getting married, putting off having children. 349 00:18:23,640 --> 00:18:26,920 You start to prioritize today at the expense of tomorrow. 350 00:18:27,880 --> 00:18:30,760 People see that they're saving that for it never gets them anywhere 351 00:18:30,760 --> 00:18:32,400 because the asset prices are going up too quickly. 352 00:18:32,400 --> 00:18:35,640 They'll never be able to buy a house to be never be able to buy a house. 353 00:18:35,640 --> 00:18:39,080 Then prioritize living your best life and go on a holiday and spending more 354 00:18:39,440 --> 00:18:42,440 enjoying yourself. 355 00:18:42,760 --> 00:18:44,920 But for those not fortunate to be in this position, 356 00:18:44,920 --> 00:18:48,880 for those that every day is a struggle feeding themselves and their families, 357 00:18:48,920 --> 00:18:50,680 housing themselves and their families, 358 00:18:51,640 --> 00:18:54,640 they're stuck on a treadmill of decline. 359 00:18:55,560 --> 00:18:59,240 Now, every day is harder, which leads to a growth in addiction. 360 00:19:00,120 --> 00:19:03,640 Various forms of addiction, including opioids across the island, 361 00:19:03,800 --> 00:19:07,560 which leads to yet more of a health crisis and yet more intervention 362 00:19:07,720 --> 00:19:09,560 from the government. 363 00:19:09,560 --> 00:19:11,440 And all of this leads 364 00:19:11,440 --> 00:19:14,440 to a mental health crisis across the population. 365 00:19:14,880 --> 00:19:18,240 And now the government finds itself in a position where, because it's press 366 00:19:18,240 --> 00:19:22,240 the big red button, it's created a whole range of secondary issues 367 00:19:22,800 --> 00:19:25,800 that now it needs to step in and try and solve, 368 00:19:26,520 --> 00:19:28,600 because it has to step in and try and solve these things. 369 00:19:28,600 --> 00:19:31,600 It means the government needs to divert more capital 370 00:19:32,280 --> 00:19:34,440 to these areas of the economy, 371 00:19:34,440 --> 00:19:36,600 which again, is a greater misallocation of capital, 372 00:19:36,600 --> 00:19:39,640 which pulls more entrepreneurs into the wrong parts of the economy 373 00:19:39,640 --> 00:19:41,960 through the distortion in the price signals. 374 00:19:41,960 --> 00:19:44,960 And between the increased leverage in the economy driven by the banks 375 00:19:45,120 --> 00:19:46,520 and the misallocation of cattle. 376 00:19:46,520 --> 00:19:49,240 It's so is the seeds of the next emergency. 377 00:19:49,240 --> 00:19:53,640 I fear Tesla has only one choice, and that's to press the big red button again. 378 00:19:55,200 --> 00:19:56,120 And now he's starting to 379 00:19:56,120 --> 00:19:59,160 realize that actually this wasn't consequence free. 380 00:20:00,000 --> 00:20:03,000 But now he's lurching from crisis to ever bigger crisis. 381 00:20:03,200 --> 00:20:06,200 He presses the big red button, which debases the currency, 382 00:20:06,560 --> 00:20:10,080 which leads to pick a government and more involvement in everything. 383 00:20:10,960 --> 00:20:13,360 And now, not only is the government bigger, 384 00:20:13,360 --> 00:20:16,440 but the government has spawned a series of parasitic industries 385 00:20:16,800 --> 00:20:19,520 attached to Big Pharma, 386 00:20:19,520 --> 00:20:22,680 who are increasingly involved with the government to try to deal 387 00:20:22,680 --> 00:20:27,200 with the symptoms, but not the causes of the various health crisis. 388 00:20:27,680 --> 00:20:32,560 Never incentive to actually cure a patient just to treat them long term. 389 00:20:32,720 --> 00:20:35,720 Because a healthy customer is a lost customer. 390 00:20:36,720 --> 00:20:40,120 Big food pushes for ever lower food standards across the economy. 391 00:20:41,000 --> 00:20:43,680 The military industrial complex pushes for ever greater 392 00:20:43,680 --> 00:20:47,400 spending on defense, both at home and on foreign shores. 393 00:20:48,360 --> 00:20:50,680 Wall Street up the rivals in debt 394 00:20:50,680 --> 00:20:54,400 and now so leveraged that the government wants to protect them. 395 00:20:54,720 --> 00:20:57,440 They can't be allowed to fail, 396 00:20:57,440 --> 00:21:00,440 because if the banks fail, the population loses their money. 397 00:21:00,600 --> 00:21:01,520 The government falls. 398 00:21:02,800 --> 00:21:03,160 The government 399 00:21:03,160 --> 00:21:06,160 also continues to make unproductive investments, 400 00:21:06,440 --> 00:21:10,120 investments, trying to deal with the secondary issues it's created, 401 00:21:10,680 --> 00:21:14,760 but also investments driven from whatever political ideology the government has. 402 00:21:16,080 --> 00:21:19,920 And all of these things are effectively now crony corporatism. 403 00:21:19,920 --> 00:21:24,040 It's very hard to see where the government ends and these industries begin. 404 00:21:24,760 --> 00:21:27,960 The success of the government is deeply intertwined 405 00:21:27,960 --> 00:21:29,520 with the success of the industries. 406 00:21:29,520 --> 00:21:33,400 These industries start to ask the government to become regulated. 407 00:21:33,400 --> 00:21:36,400 You need to regulators to protect the public. 408 00:21:36,480 --> 00:21:40,080 But this regulation, all it does is make competition harder. 409 00:21:40,600 --> 00:21:43,840 The 1 to 3 companies, each of these areas are now very, 410 00:21:43,840 --> 00:21:44,880 very close to the government. 411 00:21:44,880 --> 00:21:46,560 They supply the people for the regulator. 412 00:21:46,560 --> 00:21:50,400 When the regulators end the tenure to go back and work for these companies, 413 00:21:51,120 --> 00:21:55,080 it's stopped smaller companies coming in and competing with them to 414 00:21:55,080 --> 00:21:58,160 then supply the government on better terms with higher quality product. 415 00:21:58,560 --> 00:22:01,240 So quality starts to decline 416 00:22:01,240 --> 00:22:04,560 and prices start to rise, which of course is 417 00:22:04,760 --> 00:22:07,720 great news for these companies because profit margins go up. 418 00:22:09,320 --> 00:22:11,840 What happens then is the media gets captured, 419 00:22:11,840 --> 00:22:15,960 the government is teetering to maintain social stability. 420 00:22:16,760 --> 00:22:20,480 It's now protecting these industries at the expense of the population 421 00:22:20,480 --> 00:22:22,560 rather than the other way around. 422 00:22:22,560 --> 00:22:26,400 And because of this social balance that it needs to maintain, 423 00:22:27,360 --> 00:22:32,520 it can't allow free speech, dissent, alternative opinions or questioning 424 00:22:32,520 --> 00:22:36,120 of anything that undermines the legitimacy of the government in any way. 425 00:22:36,520 --> 00:22:39,440 Not only that, the biggest advertisers for the media 426 00:22:39,440 --> 00:22:42,440 companies are the companies connected to the government. 427 00:22:42,520 --> 00:22:45,840 So the media companies increasingly don't want to upset their advertisers. 428 00:22:46,360 --> 00:22:50,160 And when you have a captured media and a military industrial complex 429 00:22:50,160 --> 00:22:54,240 fomenting strife on foreign shores, you get the creation of a fresh force 430 00:22:55,640 --> 00:22:57,880 and then the wars themselves 431 00:22:57,880 --> 00:23:00,240 are so actively supported by the philatelic population, 432 00:23:00,240 --> 00:23:02,400 because all they see in their media 433 00:23:02,400 --> 00:23:04,920 is that we have to do this because it's the right thing to do. 434 00:23:06,440 --> 00:23:09,560 And between the forever wars and the banking system, bailouts 435 00:23:09,560 --> 00:23:12,640 and the excessive debt, it leads to the next emergency. 436 00:23:12,880 --> 00:23:15,520 But this time it's just so much bigger. 437 00:23:15,520 --> 00:23:19,120 And the only choice he has is to press the big red button again. 438 00:23:19,600 --> 00:23:21,000 But this time it's different. 439 00:23:21,000 --> 00:23:23,560 It's a massive erosion of trust. 440 00:23:23,560 --> 00:23:25,760 Every time he presses the button 441 00:23:25,760 --> 00:23:28,720 more and more people become aware of what is happening. 442 00:23:28,720 --> 00:23:32,440 And this goes round and round and round until something breaks. 443 00:23:33,400 --> 00:23:36,400 And now we're starting to get quite worried. 444 00:23:36,880 --> 00:23:39,000 So what's happening to the money? 445 00:23:39,000 --> 00:23:43,520 But instead of increasing 3% a year in purchasing power, it's 446 00:23:43,520 --> 00:23:48,760 now losing 7% a year because he's printing 10% a year of extra money. 447 00:23:49,000 --> 00:23:51,200 And not only that, he's undermining the productivity 448 00:23:51,200 --> 00:23:53,400 in the economy by distorting all the price signals. 449 00:23:54,880 --> 00:23:57,240 So what happens to the future global population? 450 00:23:57,240 --> 00:24:00,200 Well, the poor year on fixed wages 451 00:24:00,200 --> 00:24:03,200 have very low income security and no assets. 452 00:24:03,840 --> 00:24:05,000 They can't win. 453 00:24:05,000 --> 00:24:08,000 They just get poorer every single year. 454 00:24:08,280 --> 00:24:09,840 The the middle earners 455 00:24:09,840 --> 00:24:13,080 have fixed salaries and mixed income security. 456 00:24:13,600 --> 00:24:15,480 They're not the first to be fired. 457 00:24:15,480 --> 00:24:17,160 They often have a home. 458 00:24:17,160 --> 00:24:19,200 They can never sell the home and realize a game 459 00:24:19,200 --> 00:24:21,280 because you've got to live somewhere you still want home. 460 00:24:21,280 --> 00:24:22,920 You've got to buy into the home. 461 00:24:22,920 --> 00:24:25,440 You might have some investments, 462 00:24:25,440 --> 00:24:28,440 but they are becoming the new poor. 463 00:24:28,880 --> 00:24:30,360 Or surely the wealthy are doing well. 464 00:24:30,360 --> 00:24:35,320 Their income is largely from asset yields, from operating businesses or investing 465 00:24:36,760 --> 00:24:37,280 that income. 466 00:24:37,280 --> 00:24:40,280 Security is high because they can't be fired. 467 00:24:40,320 --> 00:24:43,080 But for them, it's death by a thousand cuts. 468 00:24:43,080 --> 00:24:45,720 They see their wealth as a number 469 00:24:46,680 --> 00:24:47,400 continue to 470 00:24:47,400 --> 00:24:50,400 increase, but they feel like they're getting poorer. 471 00:24:50,640 --> 00:24:53,440 Life continues to get harder. 472 00:24:53,440 --> 00:24:55,840 And that's because the rate at which they're earning money, 473 00:24:55,840 --> 00:24:59,760 the yield on their assets, is below the rate at which we're printing money. 474 00:25:00,440 --> 00:25:03,440 So they're slowly having their wealth siphoned away. 475 00:25:04,280 --> 00:25:06,200 But politically connected. 476 00:25:06,200 --> 00:25:10,680 Those that are government funded and have fully insulated income security. 477 00:25:10,920 --> 00:25:15,280 And perversely, their income goes up and becomes even more valuable 478 00:25:15,960 --> 00:25:18,360 as society continues to decline because the government 479 00:25:18,360 --> 00:25:21,360 needs more and more intervention. 480 00:25:22,120 --> 00:25:24,280 And it's really just industrialized theft 481 00:25:24,280 --> 00:25:27,280 at this point from everyone else in society. 482 00:25:28,480 --> 00:25:30,000 But now so much time has passed 483 00:25:30,000 --> 00:25:33,000 that the wall down the middle of the island starts to crack, 484 00:25:33,720 --> 00:25:36,440 and it starts to crack in such a way that both people 485 00:25:36,440 --> 00:25:39,440 and money can start to flow from one side to the other. 486 00:25:40,000 --> 00:25:42,280 So on the one side, you've got satoshis 487 00:25:42,280 --> 00:25:44,400 increasing their purchasing power at 3% year. 488 00:25:44,400 --> 00:25:45,840 On the other side, you've got the fear tellers 489 00:25:45,840 --> 00:25:48,840 that are losing 7% purchasing power every year. 490 00:25:49,760 --> 00:25:51,480 So what happens? Why? 491 00:25:53,360 --> 00:25:55,480 What fear teller starts to see 492 00:25:55,480 --> 00:25:58,480 is that money and people start to leave 493 00:25:58,760 --> 00:26:02,320 because they don't trust their ability to save using fear tellers. 494 00:26:02,320 --> 00:26:05,200 They want satoshis. 495 00:26:05,200 --> 00:26:08,600 Okay, so this comes out on a fear teller standard. 496 00:26:08,600 --> 00:26:10,800 Your money is stealing from you. 497 00:26:10,800 --> 00:26:14,880 Whereas on a Satoshi standard, the whole world is working 24 over seven 498 00:26:15,480 --> 00:26:18,480 to increase your purchasing power. 499 00:26:20,040 --> 00:26:21,600 But now these gate five is open. 500 00:26:21,600 --> 00:26:24,280 People realize they can't save and fear tellers, 501 00:26:24,280 --> 00:26:27,200 so they start selling fear tellers to buy a satoshis. 502 00:26:27,200 --> 00:26:29,800 So the fear tellers decline further in value, triggering 503 00:26:29,800 --> 00:26:33,240 get more budgetary and currency crises for fear teller to deal with. 504 00:26:33,680 --> 00:26:36,360 And the only choice is to press the big red button again. 505 00:26:36,360 --> 00:26:39,320 But this time printing money is not enough 506 00:26:40,560 --> 00:26:43,920 because value is leaking out of fear. 507 00:26:43,920 --> 00:26:45,400 Teller saw to be on it. 508 00:26:45,400 --> 00:26:48,560 He needs to change another characteristic of perfect money, 509 00:26:49,560 --> 00:26:52,840 which is to remove the censorship resistant nature of it. 510 00:26:54,200 --> 00:26:55,880 So the fear teller population 511 00:26:55,880 --> 00:26:58,880 used to be able to hold the money themselves. 512 00:26:59,320 --> 00:27:01,440 Now fear, teller says, 513 00:27:01,440 --> 00:27:02,880 no longer allowed to hold it yourselves. 514 00:27:02,880 --> 00:27:04,440 You have to put it in the banks. 515 00:27:04,440 --> 00:27:07,440 The banks are going to hold everybody's money. 516 00:27:07,560 --> 00:27:11,360 The population now feel that they are guilty until proven innocent. 517 00:27:11,360 --> 00:27:13,200 For making any transaction. 518 00:27:13,200 --> 00:27:16,360 The banks will check every transaction to protect you. 519 00:27:18,600 --> 00:27:21,000 Which means when people are trying to buy 520 00:27:21,000 --> 00:27:24,240 certain things, including satoshis, the banks now say no. 521 00:27:25,080 --> 00:27:25,880 It's because of this. 522 00:27:25,880 --> 00:27:29,520 It's because of that is because of fear that he restricts the flow of capital 523 00:27:30,160 --> 00:27:32,040 out of fear teller side of the island. 524 00:27:33,240 --> 00:27:35,760 He may even just create explicit capital controls, 525 00:27:35,760 --> 00:27:38,760 you know, no longer allowed to buy satoshis at all. 526 00:27:40,080 --> 00:27:41,880 But people always find a way, and more 527 00:27:41,880 --> 00:27:44,880 and more people are waking up to what is happening and the cycle continues. 528 00:27:45,800 --> 00:27:48,760 But the important thing is the wealth and the people 529 00:27:48,760 --> 00:27:51,760 flee to the uncorrupted money 530 00:27:52,480 --> 00:27:55,480 I now fear to those beginning to to really panic. 531 00:27:56,720 --> 00:27:58,920 So where does it end for fear teller 532 00:27:58,920 --> 00:28:01,920 well, if is lucky 533 00:28:02,040 --> 00:28:05,520 with sustained inflation allowing the government to inflate away 534 00:28:05,520 --> 00:28:09,240 its debts and slowly siphon away the wealth of the public, 535 00:28:10,520 --> 00:28:13,160 this may even border on hyperinflation. 536 00:28:13,160 --> 00:28:16,760 I say lucky because it's very hard to do that 537 00:28:17,120 --> 00:28:19,800 and maintain social cohesion, 538 00:28:19,800 --> 00:28:22,360 and something is likely to go wrong. 539 00:28:22,360 --> 00:28:24,720 It will definitely be asset seizures. 540 00:28:24,720 --> 00:28:27,480 Now that all the money is held in the banks, 541 00:28:27,480 --> 00:28:31,920 one day the teller will decree that we're all in it together, 542 00:28:33,240 --> 00:28:34,080 and the banks 543 00:28:34,080 --> 00:28:37,160 will hand over a proportion of their capital to the government. 544 00:28:37,720 --> 00:28:42,560 Just like in Cyprus in 2013, if you held over €100,000 in the bank 545 00:28:42,600 --> 00:28:45,600 overnight, 45% of that went to the government. 546 00:28:46,200 --> 00:28:49,200 The public was effectively bailed in 547 00:28:49,480 --> 00:28:52,080 to bail up the banks and the government 548 00:28:52,080 --> 00:28:54,760 from their own mismanagement, 549 00:28:54,760 --> 00:28:57,760 but also happened in the US in 1933. 550 00:28:58,680 --> 00:29:01,800 They made gold holdings for the individual illegal 551 00:29:02,880 --> 00:29:04,640 and this lasted for almost 40 years. 552 00:29:04,640 --> 00:29:07,640 If you held more than $100 of gold and you were caught 553 00:29:07,920 --> 00:29:10,920 $10,000 fine or ten years in prison, 554 00:29:11,400 --> 00:29:14,400 and this is when $10,000 was a huge amount of money 555 00:29:15,800 --> 00:29:19,480 for utilities, a rise in political extremism on both ends of the spectrum. 556 00:29:20,720 --> 00:29:23,200 The government never explains to the population 557 00:29:23,200 --> 00:29:25,200 where these problems are coming from. 558 00:29:25,200 --> 00:29:28,880 They don't tell them it's because of the money printing via the big red tarp. 559 00:29:30,440 --> 00:29:32,440 They control the media. 560 00:29:32,440 --> 00:29:34,600 The government is protective of itself. 561 00:29:34,600 --> 00:29:36,560 Now tell the population the truth. 562 00:29:36,560 --> 00:29:39,560 They don't help the population join the dots. 563 00:29:39,720 --> 00:29:42,880 They don't explain the link from the big red button to the issues. 564 00:29:43,680 --> 00:29:46,080 They blame it on the greedy businessmen or the billionaires, 565 00:29:46,080 --> 00:29:49,080 or that foreign dictator, or this or that. 566 00:29:50,120 --> 00:29:53,040 And then what happens is people ask for more help 567 00:29:53,040 --> 00:29:55,920 and more support from the government to deal with all of these issues. 568 00:29:55,920 --> 00:29:58,120 And so the only solution is 569 00:29:58,120 --> 00:30:00,360 the governments involved in everything. 570 00:30:00,360 --> 00:30:04,400 So at every step of this journey, the solution to all the problems 571 00:30:04,400 --> 00:30:07,400 has always been more government involvement. 572 00:30:08,560 --> 00:30:10,920 And so the people see these problems 573 00:30:10,920 --> 00:30:13,920 and vote for more government involvement 574 00:30:14,120 --> 00:30:17,120 to solve. 575 00:30:17,400 --> 00:30:19,920 Or something worse. 576 00:30:19,920 --> 00:30:23,880 But in all scenarios, people want to hold satoshis and not for you. 577 00:30:23,880 --> 00:30:24,320 Tell us. 578 00:30:25,440 --> 00:30:26,640 So if we go back 579 00:30:26,640 --> 00:30:30,360 to that list of seven characteristics of perfect money, 580 00:30:31,440 --> 00:30:33,680 Fiat only changed two of them. 581 00:30:33,680 --> 00:30:36,240 The other five is still exactly the same, 582 00:30:36,240 --> 00:30:38,880 and the query ended up 583 00:30:38,880 --> 00:30:40,440 about the reveal. 584 00:30:40,440 --> 00:30:43,440 And some of you may be slightly ahead of me here. 585 00:30:44,520 --> 00:30:46,040 The US dollar 586 00:30:46,040 --> 00:30:49,040 is just a terrible version of the theater. 587 00:30:51,000 --> 00:30:52,400 So the US dollar 588 00:30:52,400 --> 00:30:57,000 is corrupted on the same two key issues that we Italians were, 589 00:30:57,720 --> 00:31:00,720 but on the other five it's materially worse as well. 590 00:31:01,160 --> 00:31:04,960 In terms of portability, it's easy to carry, easy to pay. 591 00:31:05,640 --> 00:31:07,480 It's not great for merchants. 592 00:31:07,480 --> 00:31:11,400 You pay instantly the merchants and get the money for multiple days. 593 00:31:11,400 --> 00:31:15,720 And that's if there was no fraud or chargebacks is divisible, 594 00:31:15,720 --> 00:31:19,800 but only to a point and removes the ability to do micro-transactions, 595 00:31:20,040 --> 00:31:23,280 which will unlock potentially completely different economic models. 596 00:31:24,840 --> 00:31:27,840 It's durable in digital form, 597 00:31:27,840 --> 00:31:30,960 but we have cash component, and that cash component 598 00:31:31,960 --> 00:31:33,960 is constantly undermined. 599 00:31:33,960 --> 00:31:37,720 The notes are reprinted in terms of design every 15 or 20 years, 600 00:31:37,720 --> 00:31:41,600 so there's no ability for an individual to save outside the banking system. 601 00:31:41,600 --> 00:31:45,400 If you put notes under your bed or under the floorboards 602 00:31:45,840 --> 00:31:48,480 and leaves in 25 years, they're worthless. 603 00:31:48,480 --> 00:31:51,480 Those types of notes are gone out of circulation, 604 00:31:51,600 --> 00:31:54,200 so you need to take notes every 15 or 20 years 605 00:31:54,200 --> 00:31:57,200 to the bank handyman and get new notes. 606 00:31:57,240 --> 00:32:00,240 They're centralize everything periodically 607 00:32:00,360 --> 00:32:03,000 out of choice. 608 00:32:03,000 --> 00:32:05,280 They're fungible, which means every dollar is 609 00:32:05,280 --> 00:32:08,280 the same as every other dollar until it's not. 610 00:32:08,720 --> 00:32:10,880 Some countries around the world have already introduced 611 00:32:10,880 --> 00:32:15,960 what are known as CBDCs, which is central bank digital currency, but effective. 612 00:32:15,960 --> 00:32:17,680 It's programable money. 613 00:32:17,680 --> 00:32:19,800 A specific dollar may have an expiration date. 614 00:32:19,800 --> 00:32:23,680 You need to spend it before this period of time elapses, or else it disappears. 615 00:32:24,120 --> 00:32:27,280 Or a dollar may have only specific use cases. 616 00:32:27,280 --> 00:32:32,880 You must spend this dollar on X or Y, or you must not spend this dollar on ABC. 617 00:32:34,280 --> 00:32:36,720 The dollar is very acceptable 618 00:32:36,720 --> 00:32:39,720 around the world, but you can't pay for everywhere. 619 00:32:40,360 --> 00:32:42,760 And typically most national currencies 620 00:32:42,760 --> 00:32:45,760 are only acceptable in their own country. 621 00:32:46,160 --> 00:32:48,840 And the US has a major philatelic problem. 622 00:32:48,840 --> 00:32:51,160 This is the budget for 2020 for the budget, 623 00:32:51,160 --> 00:32:54,160 not the actuals, which have of course, were this 624 00:32:54,720 --> 00:32:57,120 budget deficit of almost 2 trillion 625 00:32:57,120 --> 00:33:00,120 on a spend just over 6 trillion, 626 00:33:00,480 --> 00:33:02,760 that's a loss in one year. 627 00:33:02,760 --> 00:33:05,360 But to put that in context, they'd have doubled the amount 628 00:33:05,360 --> 00:33:08,360 of individual income taxes for everybody in the US. 629 00:33:08,400 --> 00:33:10,200 Just to balance that. 630 00:33:10,200 --> 00:33:13,080 And on the cost side, they can mix in improvements. 631 00:33:13,080 --> 00:33:16,080 But there are some key things there you just cannot remove, 632 00:33:16,360 --> 00:33:19,360 like the debt interest. 633 00:33:19,960 --> 00:33:21,040 And the consequences. 634 00:33:21,040 --> 00:33:26,560 Well this is a chart of the amount of money in the system in dollars 635 00:33:27,160 --> 00:33:30,040 and the amount of debt issued by the US government over time. 636 00:33:31,200 --> 00:33:33,520 Now, I've labeled 1971 on here because that's 637 00:33:33,520 --> 00:33:36,520 when the US came unilaterally off the gold standard 638 00:33:37,680 --> 00:33:39,600 prior to 1971. 639 00:33:39,600 --> 00:33:43,400 If you give your dollars back and receive gold instead, 640 00:33:44,400 --> 00:33:46,400 Nixon took the US off the gold standard 641 00:33:46,400 --> 00:33:49,400 and every currency in the world followed. 642 00:33:49,720 --> 00:33:52,240 And since then, it's allowed the US to print 643 00:33:52,240 --> 00:33:55,240 unlimited amounts of money to satisfy its own needs. 644 00:33:55,640 --> 00:33:58,640 And the red chart on the left hand axis shows 645 00:33:58,800 --> 00:34:01,800 that amount of money is now 22 trillion. 646 00:34:02,400 --> 00:34:05,400 And on the right hand side, you've got the US government debt, 647 00:34:05,960 --> 00:34:08,440 which even a month later, this chart is now out of date. 648 00:34:08,440 --> 00:34:11,200 It's now 36 trillion. 649 00:34:11,200 --> 00:34:14,600 And this doesn't include the unfunded liabilities, the amount of money 650 00:34:14,640 --> 00:34:18,120 the US government has committed to pay at some point in the future 651 00:34:18,400 --> 00:34:20,600 through Social Security, Medicare, Medicaid. 652 00:34:21,600 --> 00:34:23,920 But it hasn't had to write the check yet. 653 00:34:23,920 --> 00:34:26,960 Depending on how you calculate that, it's between 50 654 00:34:26,960 --> 00:34:29,960 and 200 trillion on top of 36 trillion, if that. 655 00:34:31,080 --> 00:34:34,080 The only way to solve that is more money printing. 656 00:34:34,400 --> 00:34:37,400 So the money printer is systematically destroying 657 00:34:38,040 --> 00:34:41,040 the purchasing power of the dollar. 658 00:34:41,040 --> 00:34:44,040 Now, you may think I have something against the dollar, I absolutely don't. 659 00:34:44,080 --> 00:34:46,160 The dollar is the best that we have. 660 00:34:46,160 --> 00:34:49,320 I would love to be able to use the dollar, as would the vast majority of people 661 00:34:49,320 --> 00:34:54,000 around the world, but unfortunately, most people just aren't as lucky. 662 00:34:54,680 --> 00:34:57,120 This is the performance of all the other currencies 663 00:34:57,120 --> 00:34:59,480 versus the dollar over the last ten years. 664 00:34:59,480 --> 00:35:02,720 Some have near enough disappeared completely and so absolutely 665 00:35:02,720 --> 00:35:04,280 have they've ceased to exist. 666 00:35:04,280 --> 00:35:07,200 The people who saved their economic energy 667 00:35:07,200 --> 00:35:10,160 in those currencies, I've seen them vanish. 668 00:35:12,120 --> 00:35:14,560 The unfortunate reality here, 669 00:35:14,560 --> 00:35:19,520 as the wonderful in Alvin repeatedly says, is nothing stops this trade. 670 00:35:20,160 --> 00:35:23,160 There is no way out for governance. 671 00:35:23,600 --> 00:35:27,360 The only solution is to keep pressing the big threat. 672 00:35:27,360 --> 00:35:31,440 But instead the conclusion is a quote from Hayek, 673 00:35:32,320 --> 00:35:36,200 who was an economist at the Austrian School, 674 00:35:37,040 --> 00:35:40,720 is that the history of government management of money has, 675 00:35:40,720 --> 00:35:46,160 except for a few short happy periods, been one of incessant fraud and deception. 676 00:35:47,200 --> 00:35:50,200 And he said this in 1988. 677 00:35:50,880 --> 00:35:53,880 Now, that would all be pretty depressing if that wasn't the solution. 678 00:35:54,560 --> 00:35:57,560 Thankfully, there is. 679 00:35:59,120 --> 00:36:01,040 The only solution here 680 00:36:01,040 --> 00:36:04,040 is the separation of money and state. 681 00:36:04,600 --> 00:36:07,320 The government cannot be allowed access 682 00:36:07,320 --> 00:36:10,320 to a big rent, but. 683 00:36:10,640 --> 00:36:11,520 On Hayek again, 684 00:36:11,520 --> 00:36:14,520 this time the quotes from 1984 685 00:36:14,880 --> 00:36:16,160 I don't believe we shall ever 686 00:36:16,160 --> 00:36:19,160 have good money again until we take it out of the hands of government. 687 00:36:19,800 --> 00:36:22,080 We can't take it violently out of their hands. 688 00:36:22,080 --> 00:36:25,120 All we can do is buy some sly, 689 00:36:25,120 --> 00:36:28,120 roundabout way, introduce something they just can't stop. 690 00:36:29,880 --> 00:36:31,680 Brilliant quote. 691 00:36:31,680 --> 00:36:36,440 So I look now with these links between the big red button 692 00:36:37,160 --> 00:36:40,360 and the money printer and all of these issues 693 00:36:40,360 --> 00:36:43,800 that we see in our lives today, that it's now much clearer 694 00:36:44,520 --> 00:36:47,520 that if we can fix the money, we'll fix the world. 695 00:36:49,080 --> 00:36:51,200 And the good news here, 696 00:36:51,200 --> 00:36:54,200 this is the best news, is that Satoshi is a real 697 00:36:55,200 --> 00:36:55,840 and even Fiat. 698 00:36:55,840 --> 00:36:58,840 Tello is now a convert. 699 00:37:00,560 --> 00:37:03,560 The solution is Bitcoin. 700 00:37:04,920 --> 00:37:08,080 One Bitcoin is 100 million satoshis 701 00:37:08,560 --> 00:37:11,640 in the same way the $1 is 100 cents. 702 00:37:13,320 --> 00:37:15,560 Now you may feel you know about Bitcoin already 703 00:37:15,560 --> 00:37:19,440 because of something you've been told by friends or you read in the media. 704 00:37:20,160 --> 00:37:23,160 I would encourage you to start the game 705 00:37:24,000 --> 00:37:27,360 when we derive our information from media 706 00:37:27,360 --> 00:37:31,400 or people who have derived their information from the media, 707 00:37:32,000 --> 00:37:36,360 and that media is connected to the people who owned and benefit from the money 708 00:37:36,360 --> 00:37:40,360 printer, it tends not to be necessarily the most accurate information. 709 00:37:40,920 --> 00:37:43,920 So don't trust, verify 710 00:37:45,240 --> 00:37:47,520 come to SATs versus Viacom. 711 00:37:47,520 --> 00:37:50,520 We've set up a website which helps people get up and running. 712 00:37:50,600 --> 00:37:53,640 If you're just getting started, maybe you've never heard of Bitcoin before. 713 00:37:54,240 --> 00:37:57,240 Kong, sign up or we'll send you some information 714 00:37:57,480 --> 00:38:01,080 so you can learn about it for yourself and make your own decisions about Bitcoin. 715 00:38:02,040 --> 00:38:02,920 If you're further along, 716 00:38:02,920 --> 00:38:05,920 or maybe even call yourself a Bitcoin already, then amazing. 717 00:38:07,080 --> 00:38:10,080 This is not a commercial enterprise for me. 718 00:38:10,160 --> 00:38:13,600 This is a charitable one and so any support 719 00:38:13,840 --> 00:38:17,520 from within the Bitcoin community or further afield I would love to receive. 720 00:38:18,120 --> 00:38:22,240 People want to give this talk themselves to their friends or just share it 721 00:38:22,440 --> 00:38:26,200 more broadly, or even volunteer to give a presentation as part of a group. 722 00:38:26,200 --> 00:38:28,320 Then just get in touch. 723 00:38:28,320 --> 00:38:31,120 And the third one is inviting us to speak. 724 00:38:31,120 --> 00:38:34,200 We want as many people as possible to see this presentation, 725 00:38:34,600 --> 00:38:37,720 because the information contained within it about what the problem is, 726 00:38:38,040 --> 00:38:39,520 is so important. 727 00:38:39,520 --> 00:38:43,920 So we'd love to speak if you have us at schools, universities, industry 728 00:38:43,920 --> 00:38:48,840 conferences, events, or even at workplaces if people are interested to learn more. 729 00:38:49,320 --> 00:38:51,160 So please just get in touch. 730 00:38:51,160 --> 00:38:53,640 Here's the QR code, which will take you directly to the website. 731 00:38:54,840 --> 00:38:56,400 Alternatively, if you 732 00:38:56,400 --> 00:39:00,240 are Onex on screen, say hi and join the conversation with us. 733 00:39:00,240 --> 00:39:03,240 Then please, please do. 734 00:39:05,200 --> 00:39:05,560 Firstly, 735 00:39:05,560 --> 00:39:08,560 thank you for watching and I hope you enjoyed it. 736 00:39:08,720 --> 00:39:12,320 Please share this with anyone you care about. 737 00:39:13,600 --> 00:39:16,760 And if there's one thing that you take away from this is, 738 00:39:16,760 --> 00:39:21,560 I hope you will remember that if we fix the money, we'll fix the world. 739 00:39:21,560 --> 00:39:23,440 Thank you. 64647

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