i am max kaiser this is the kaiser report boxing day special episode boxing day is a holiday celebrated the day after christmas thus being the 2nd day of christmas time i stacey that sounds so british to have christmas tide and we're joined today for this 2 part special on boxing day from the united kingdom lisa dependency of the united kingdom and it looks like buckingham palace this is simon dixon of bank

to the future dot com welcome to kaiser you for example me again did you receive any boxes for all your service to the big community over the past year just snowball says you know on our christmas week special and new year's week special what we like to do is look back at the year that we were just about and and look forward to the next year so 2020 there's no need to really discuss that it was eventful for everybody all around the world but as we exit 2020. 1 thing that stands out to me and among the many things that stands out is that the u.s. dollar is created 2020 the total is 21 percent of all u.s. dollars were created and 2020 and we have a chart up on the screen here and i mean it looks it looks as exponential as the pandemic so what's going on what does this bode for the future what actually

happened in 2020 and what does this mean for the future really reaching the end of the debt cycle and honestly the united states as export has been exporting its inflation globally i'm jus to restraint this being a world reserve currency so china is willing to soak up as many dollars because it's been exporting goods to americans americans have been consuming those goods and because china has currency controls those dollars end up in the people's bank of china will close. the factories in the sending those goods on our city do nothing with those as goldens and so. china has now accumulates it's because they don't want to hold bankruptcy there to cumulate at about $1.00 trillion dollars almost. and they've been accumulating as much gold as they possibly can. so really the united states with this 21 percent of the money supply had been created back by

debts no the last new over the last year is going to be exporting a lot of the effects of the b. and really if we're reaching the end of the debt cycle where do we go from here well that's what we're going to see next year simon you mentioned or entering the end of 8 that cycle so which that cycle are we talking about when did it start and give us some characterization terms of it amplitude and what's been going on here when this toss it in 1971 so this is a multi decade experiment when you move to. debt based all the standards with the nixon show and this was actually taken off the gold standard and now is a supply of gold as really has increased so significantly in say drastically that we end up with the shock of that and obviously the pandemic was the most recent shock of that they allowed them to increase the money supply by 21 percent and this

red is led to so much record inequality say the inequality war is really what we saw in 2020 whereby this one states of easing money this federal reserve stimulus has just been pumped into increasing assets that the wealthy already have. and really it just goes directly into the wall some of it's a few crumbs $1000.00 or $2000.00 maybe was given to the people as a check the most of it is going into increasing asset vices prices of the wealthy causing so much dissatisfaction globally as the disparity between the haves and have seen all well this federal reserve money comes in but also they have no choice but to do that say well we're going to see i believe in 2021 is a shift in monetary policy whereby they recognize that we're moving towards negative interest rates we've you know done as much q.e. as can be effective the stock markets are all time highs while the economy is an

all time lays so that for we need to start looking at different forms of monetary policy which is where in step the central bank digital currency that we've talked about in previous episodes not doubt by debt not created by banks but injected into the economy and to really disrupting banks and using nice central bank digital currencies to bypass the financial system yeah i want to stick on the point you just made there about america sent us dollars to china china's got $1.00 trillion dollars in addition to setting dollars to china. america over the past sense china joined a world trade organization america spent sending their jobs to china some america sentence jobs and its cash to china and then the central bank here in the u.s. says there is down inflation where you have to keep printing money to try to create inflation and people in america are left dumbstruck because they don't understand anything that's coming out of the federal reserve it doesn't make any sense to them

oh how do they get away with saying there's no inflation if they have as you point they have set the inflation to china in it along with the jobs right so it's a structurally structural attack on the economy that they're masking behind this phrase oh we're trying to create a freight inflation simon more china because it has companies told us they have to create more remember more chinese you want in order to see your hand outs of the people they're going to send it means actual real goods i'm an enormous needs great sadness structural. you know challenges and one of the things that we saw in 2020 was you know certain the pandemic amusement mort's was protectionism only local economies rob the nazi movement towards the globalization which was to try and riots now and so when you start to see this protectionism. you have to look off the people within your economy and you get these structural trade wars you get the

structural geo political was and more importantly you get news currency wars wall the people are actually paying so those through hidden taxes because when you've got this monetary policies. inflation but since you know being reported as we're going to deplete your savings by it's you percent per year but the reality is is that was the cause a report was always called those numbers being changed and it doesn't feel that because everyone knows that they're actually thing right make them buy less savings then they can't. day and at the same time you've got no will to not see for asperity because the academic situation so neo new york genius cd anything you can do is money printing your hidden tax free and notion so there is a smoking gun that kind of points to what's going on here the money velocity collapsing here in the u.s. that so there's no economic activity while america ships all of its money and jobs

to china but in 2020 personal income was up 5 and a half percent on the air thanks to the stimulus the enhanced unemployment benefits over 20000000 lost their jobs none of this has ever existed in the real world so the personal income was up 5 an app percent simon so they're american ship that's job that is money to china they created on employment and and poverty in america but to make up for that they're printing lots and lots of money and where is this going where is this going to end up again this is the rich getting richer and the pool getting poorer and you know we talked about the inequality gap see inequality gaps can only really increase from here. but then this is this these 2 council forces which is that if you holding cash or if you're holding your money in dollars and then you've got to combat these inflation effects and say you need more and more money in order to afford the same type of life and so really the only

logical stats for those that don't have an a saying is to go deeper into death and when the government is actually leading by example and showing that you can just you know to salute states these days the spending habits based upon debts then the poor people go deeper into debt so they pay over sleepy much higher interest rates than those most connected to the central banks and pay the lowest interest rates. and then at the same time you have to try and counter that some say the reason the stock markets are all time high. it's because the institutional investors recognize that you know i'm all republican caps and this government is no longer good for still markets it reduces tax it reduces regulations which is normally a good effect i'm still markets but now instead they know the stock markets are equal to stimulus and so he's more likely while a democratic government is more likely to do more stimulus and therefore people and

institutional investors now invest in stock markets based upon that and then the small companies as we have seen throughout 2020 and now it's a 2021 putting a percentage of said ball is the public companies now applying to the f.c.c. so they compose some of their reserves since a big coin so that they can have a counterattack say throughout 2020 we saw that to see more and more corporations look at how they can protect their reserves as public companies using big coin as it was so we saw it and so governments and central banks i think going to be accumulate some big question at the same time but let's go deeper into this situation that max us describe because in america uniquely american workers earned 5.5 percent more in 2020 than they did in 21000 admits a pandemic admits them staying home and the reason why is because of enhanced

unemployment benefits were saw every american getting $600.00 a week extra on top of unemployment stuff so way beyond anything that was done in europe and so this is basically universal basic income are we ever going to be able to stop that because why would somebody want to return to work at say you know fast food joint if they're going to have to decline if their income will go down significantly why is that a this is a shift from you know a country no ideology that was built upon calculus and the american dream and the place where you can call when your dreams can come true and you can do whatever you want. to him even to your dreams come true based upon how much money you can get from the government which is a shift from capsule is them ideology to socialist ideology and we're seeing that reflected in many of the social movements across the country where you know really elections a wad now based upon how much you're willing to give your people and you have the next generation of people that are just you know really looking for or dependent

upon such handouts because they're not even entering the workforce they've gone straight into these universal incomes and really you know america's looking you know china is looking more like america and america is looking more like china is where we're going well we got to take a break and when we come back lots more what simon dixon. going to those it did just that in japanese and i. don't mean it just became a zone on that. plan because of the math alone today and that coming out of. the economy to have more than a. couple said. no

i don't even allow. this to turn over. the long. end of the month they're going to. go and we're going to see you know the. really happy down.

well go back to the kaiser report boxing day special assignment stay safe followup right i have a follow up to that last question and answer in that 1st segment of this crisis report boxing day special and that is that we were talking about the fact that americans earned 5.5 percent more in 2020 than they did in 2019 now in terms of you know the significance of this paradigm shift that's happening in 1971 the u.s. basically went bankrupt they defaulted on $300000000.00 worth of debt to the united kingdom that they owed in gold and they decided not to pay it back nixon closed the

gold window now we have a situation where you know basically other countries around the world especially china are financing the u.s. debt and the u.s. is just ever expanding the amount of money that they give to their citizens free where they don't have to work more and more people are just getting m.m.t. u.b.i. all this stuff joe biden says that the 1st thing he's going to do by executive order as soon as he gets into office is that he's going to wipe out student debt that's another trillion hawkers why is there a point where the rest of the world says we're not going to find necessarily more or is it just too dangerous to do that some states you would have full credit ratings would go down and midi's and s. and p. would put down those but that's a political move the doesn't really happen and really. there is a point to which i think we're starting to experience and now where the appetite so these these treasuries in the u.s.

that stalls to actually reach the point where people question the credit rating but we still know they say the at the top and so these treasuries i mean is still you know in full swing. and at some stage we start to you know as soon as the appetite. he says then you just saw to see you know again a change in the way that monetary monetary policy actually works so rather than actually having to sell the those that products if they are no longer have the dumond know just find a new money supply a new mechanism for introducing that money and at some stage so just say well why even go via the bone why we even go on why the debt capital markets why don't we just like you know abraham lincoln did an apostate when funding simple was the government just creates the money and prints off some new greenbacks you minus we'll just do that some say the central bank digital currency may not even be

a central bank digital currency it may just be a government issued digital currency the just cuts out the need for the central bank and and just recognises that they can print to save money we don't even need these that marcus' for it and you move to full more than monetary theory and all of the decreases in freedom liberty and everything that comes with so that would be a step change you know a quantum change here in the u.s. and around the world similar problems are exist so the i.m.f. wants a new brenton woods so tell us what that means and will it happen in 2021 in what would the us under biden can see 8 under a new brand of what the i.m.f. the bank of international settlements in the world bank have been you know trying to put together a global currency for a long time they succeeded in putting together this special drawing rights which is essentially a overdraw facility for countries that choose to take that eva troughed and the

pandemic has led to you know more and more countries needing to actually take on some of these i.m.f. claims and you know they're trying to get a great a foothold on all the economies some stage we reach some. it's to moment because as america and the world still seem used to more universe e.b.r.i. see you know more of a socialist type of movement as they need to fund all of these climate changes and all of these things student loans and all of these programs that they're looking to restructure some point everyone sits around the table and says well why don't we just restructure this whole thing why don't we introduce you know this this new digital currency creates is on a global scale and if they you know you have a democratic government or you have a boys and at the same time then you're more likely to not necessarily defend the

dollar but try and get behind the backing of the i.m.f. so the last time this was renegotiated menos keane's wanted to introduce the bankole as a as a digital currency or a currency which was bought by gold but instead you end up with the dollars by gold the removal of fats and later and then probably you end up with a new digital currency by the i.m.f. bat dollars which are backed by debts which abide by nothing so into this mix of monetary madness and money printer. and free money for certain people around the world we have the cantle in effect all over the world some get more free money than others but you know nevertheless it's a global phenomenon what happens in 2021 with bitcoin obviously towards the end of the year just like in 2017 we've seen a run up we've seen some volatility but in 2021 we see even the likes of citibank

predicting that we could see $318000.00 bit quiet which is probably one of the most extreme forecasting we've seen from anybody even a big coin or so do you agree that that's within the realm of possible. and if so what does the world look like economically and monetary if queen hits 30800000 well that's a really interesting scenario once you hit a big coining reached hoffa hoffa trillion dollar 500 $1000000000.00 market cap of some stage and reaching over 0 trillion dollars really saw us to get it in the high is so many more people the you know what we saw i think throughout 2020 is more more coper ations deciding they needed suppose some of them money and a bit coin and i think one of the other trends that you'll be seeing is smaller countries that you know individuals were making asymmetric best where they could

have above normal risk. by holding big current corporations have started to do that and i also think that you're going to start to see more countries more central banks city making those bets as well so you know the challenge of a big coin as it is it's a big is a resource currency and there's a going to be $21000000.00 of them have more people lose them people start to take care of them or when you saw this much valley. you know you've just got the council for us throughout 2020 you know those that were in the big queen community they have blogs throughout 2020 you know it was a crazy it was a crazy year it was tragic in so many ways to so many people but at the same time you know it is one of the most interesting times we are living through in financial history and more and more people saw to experience the utility all of you know many people are storing the gold in singapore all switzerland's and they might have been

concerned about whether they can access a jury in these times of lockdowns that we experienced in 2020 those that had big coin that held the private key to gives you the abilities he's a near our money spend your money and have a council forced against you know. the excessive printing money increasing the supply you know people that were in bitcoin were having a bloss throughout the time now there's a loss of all its infancy and if you need to it you might get a little bit scads and shaken up by that but once you've been through it's and seen and experienced it through a she is you saw it's a realize it's the fact that you have this digital scarcity. and is trying to find this prices more and more people realize that they want to money spend their money and counsel the money force and the money printing force more and more people start to get so that's and so you have more volatility but you have the general trend and so i expect more of the same throughout 2021 that we saw throughout 2020 what's

interesting blackrock who they biggest manage money manager the world something like 7 trillion they made the observation just studying their own flow of capital over their platform that money people are selling gold e.t.f. and buying big coin a.t.'s that this is something that the bakelite community we've talked about for years and saying that because they are valuable in gold in many ways and we kind of thought that that this would be the case but now it's actually happening you know you manage a platform and you've got all kinds of investors and many investors are also into gold and so how do you position this going forward is this an accelerating trend is bitcoin actually going to start eating gold at lunch and in terms of capital flows are going to dry up in gold is that really in the cards simon dixon no i think those would always be gold and big question will always be bitcoin to a very complimentary you say you know the wealthiest in the world who is used gold

as a way of preserving their wealth of keeping their purchasing power they don't necessarily use it as a way to increase its purchasing power as the dollar guess devalued but pete coyne has had a new role in the world and that is there's a speculative store of value. we haven't had the opportunity to speculate on whether a new store of value would be creative and eventually if bitcoin his the market cap in a certain place in the world then those that speculated on whether the big question can become a store of value of the ones that report the growth and benefits from that and so you eventually i do believe the big question will have a place in the world as a you know an actual store of value just as gold is but at that stage it will become a wealth preserve a rather than a wealth creator and so i think that to a very complementary and you know there are certain risks with bitcoin you know some people believe that if the internet gets taken down then that's when you want

your gold until that until that time actually happens you know if you are separated it's very hard to store your goals but it's a lot easier to store your bitcoin and so they really work off each other's strengths and weaknesses but yeah if you're looking into wealth creation face then i expect my big coins can significantly outperform any golds but if i'm looking for just wealth preservation then gold just a way of doing that and to work for a complementary into the bequests base and 2020 came paul tudor jones in the 2nd quarter of 2020 and his entry into the space he's a multibillion our hedge fund very famous hedge fund manager and other hedge fund managers followed him including stan druckenmiller and then the likes of black rock then entered but he said something interesting and i want your comment on it looking forward in the big queen community for the next few years since he said that gold was a bet on basically apocalypse and humans not saving themselves and everything all

people for themselves all individuals for themselves whereas bitcoin was a bet on the future of humanity and innovation and you know positivity essentially i think we can say that the big queen community has been funded upon the possibility you know the thing to got me into big point in the 1st place is the whole. mission behind big versus the banks and i look forward to seeing more of that rhetoric come you know over the years this loss of infighting within the big queen community but i think as we start to see more challenges would be a coin i mean it's also really return to that original rhetoric the original vision of what this was actually created for and not genesis blog when they originally said chunks on the brink of 2nd bailout for banks you know that was the original vision and there's no doubt the gold was you know how it's become a doomsday and again you see that if you look at the you cheap comments under this video they'll be a bunch of people talking about how the whole world's going to end and the internet's going to be taken down and big co-incide rubbish and there are the gold

people and the big question people below this will be talking about the future and the possibilities so i think that sentiment is really accurate and you can see that probably in many of the comments below this video how about peter schiff is 2021 the year he capitulates and goes long big going to dump some of his gold yeah and i think peter schiff will take it to the grave he's stubborn i don't think he's going to change his mind and that's going to cost him a lot of gold imagine how much gold he would have right now if he actually just took a bit of it put it into bitcoin and stuck to his beliefs but actually you know listen i think peter schiff is decided that that's his position and i think that's going to cost his clients a lot of wealth wow the oracle of the isle of man simon dick said they've been great chatting with you on the boxing day special here on kaiser report and you know it's really helped us make sense of the 2020 look at 402021 stacey thanks so

much simon thanks for having me look forward to coming back more in 2021 until next time.

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