Hey guys, you're listening
host Whitney Webb. It's been
largest bank failure in US
or the Silicon Valley Bank has
Signature Bank, and silvergate
of the outlook for the entire US
the crisis is spreading the
tumbling earlier this week
major financial crisis is set to
order. How did we get here and
will be exploring the role of
broader situation with
role in SVBs demise. We'll also
of this case that suggests
play, such as the role of
capitalist Peter Thiel and
some of the connections shared
currently most troubled banks
government overtures regarding
Joining me today to unpack this
Mike Krieger. Marty is the
company focused on Bitcoin
digital age. He is also a
investment platform focused
Bitcoin ecosystem, and he also
or the T FTC podcast. Mike
as an oil and gas general
research and leader on a trading
the state of the industry and
blitzkrieg. Though he doesn't
shares his insights regularly on
you guys back on how are you
Doing great, thanks for
been a crazy week.
Yeah, totally. So the last
Episode 43, where we covered the
resulting scandals from that.
been a lot going on in the
it hasn't been very positive for
of course, is linked one way to
fallout resulting from FTX. So
I'm referring to here are
Silicon Valley Banks collapse
I'm talking specifically about
for the USDC stable coin, the
coin, which is circle, as well
bank. So let's start there.
I mean, we can start with
had personal experience. I mean,
Sure. Well, definitely
there was some stuff going on
relatively, you know, noteworthy
ties in to the events that
why don't we just start with them?
Yes, it's Silvergate.
sphere, I focus mainly on
sphere was banking, a lot of
Silvergate was one of the first
and say, hey, we'll, we'll spin
companies that are dealing with
companies in the industry
of deposits there. One of those
discussed in the previous
obviously exposed like a big
they have this counterparty FTX
of dollars. But it turned out
exist at the end of the day,
that set off a contagion event
where a lot of companies in the
deposits and moving it to other
and signature, which we'll talk
summer Silvergate had had a run
Silvergate some credit, they had
a lot of liquid reserves, so
weather a bank run of $8 billion
companies pulling their deposits
to other banks. But then,
much about a month ago, three,
Silvergate had to shut down. It
depositors pulling their their
short sellers like Marco Hotez.
like Elizabeth Warren, really
media, that Silvergate was
should pull their money out. So
their money out. But the
they were able to process all
even after they were officially
were actually a very well
Yeah, better than a lot of,
that aren't involved in crypto
let me just jump in here
additional information. So what
actually, as Marty was saying,
of like, hung on impressively
was connected with Alameda and
politicians came after it,
is that there was
I think from the DOJ, certainly
sort of serious criminal
was leaked. And so that caused
seems to from my understanding,
the coffin, interestingly
h lb loan, which was reasonably
actually had, I think, a $4
fhlb. And then they suddenly
process of repaying a 4 billion
assets, right. So this is
Silicon Valley Bank, you have
their balance sheets with which
realized loss was triggered when
that was the end of it, you
the losses, and then it just
the weird thing about this, and
later because that's a big
not seen a good explanation for
effectively nationalized. But
because it also has one of these
which is no, but the fhlb is
trigger a prepayment and silver
that. So nobody knows why silver
prepay or pay that loan, which
coffin. So that's weird. Very
I want to bring up something
So Marty, you mentioned
thanks to her and some of this
government that were related to
the FT FTX, having accounts that
silvergate But you know, as
in ED Berger have reported,
that's very small, in Washington
Farmington state bank that had
bank, and FTX had a lot of
had a lot of suspect activity
scrutinized at all right. And so
was a particular interest in
relative to other US based
with FTX. And it's interesting
since what we're specifically
silvergate, how, you know, with
gone, and that doesn't really
quote unquote, banks in the US
it, the only other bank in that
was like metropolitan bank or
that they were going to get into
this year because of regulatory
yeah, so So let me let
And we'll, we'll get into it
the things that I didn't
I read into it, the more it
signature in particular is so
when people sort of read about
know, media or just anywhere
like signature and silvergate
were the main crypto banks and
companies would hold their their
Coinbase circle, I think circle
but you know, a lot of the
accounts there. But I actually
you know, crypto companies,
there are banking relationships
mega banks, so it's not like
what separates silver gate and
targeted, actually have to do
but silvergate and Signet at
gate exchange network. And these
functioning of a, like 24/7 Fiat
know, like if you've ever used a
to try to do something over the
how are you going to send a
you know, dollars from one place
institutions are closed, right?
the crypto ecosystem operates
stable coins, and you know, you
Fiat into the stable coin, for
function 24/7, you need a 24/7
happen. And so that's what
with set. And therefore, I think
were targeted. And in signature
And so that this This, to me, it
you think about it, a stable a
function all the time. And
if it can effectively be sort of
That's kind of a cbdc. But being
going to actually try to roll
can't have a functioning, I
say. Right, that's, that's not
Yeah, I think that's a
those that don't know, the
launch its own round the clock
which is called fed now. Right?
this seems like kind of a
of some of the competition to
seems to be sort of a bigger
whole discussion about how cbdc
tie into everything. But yeah,
than that these networks of, you
crypto infrastructure have
right? Or at least they'll be
Street bank, right? Because
think about it if you
sending USD Daya stable coin,
all the time around the world
you need a cbdc? That sort of
why I think that's why this was
they're saying the FDIC is now
signatures, assets, or the bank
crypto part that's completely
that's the whole point.
Well, as we'll talk about
arguing that the shutdown of
arbitrary. So there's a lot of,
with that bank in particular.
next thing, anything you'd like
about sin, and some of these
I mean, they were, they
industry. So sin was silver
Signet, and essentially, I mean,
obviously, people are buying
price is moving, or if they
on a whim. And so these
able to send money between each
crucial function that that
provided the industry,
We're using it to but even for
move funds between each other,
So this is being taken out,
to a large extent.
All right. Well, let's move
the SVB collapse may have been
Reserve and more specifically,
policy during COVID. So there
great bets made by SVB, during
crisis and all of that, and then
recent efforts to combat
of that. So, what are your
role the Federal Reserve played
seeing or what we've seen over
I think, I think the
and a half years is the main
contagion that seems to be
United States, but also in
2020, when the economy the
Fed, drove interest rates down
dollars and kept interest rates
a year and a half. And then
you had all these banks load up
particular instruments and
bought a lot of mortgage backed
of the banking crisis of 2008.
Bank bought these mortgage
the balance sheet, they did that
was likely to keep interest
of time. So essentially, what
raising rates last year, and
system, Silicon Valley Bank,
vulnerable position where they
mismatch, they had a lot of
which are longer dated. And as
out of the system and Silicon
withdrawing funds that really
balance sheet. And so when the
the underlying bonds, or debt
correlation. So the Fed raises
and pulls dollars out of the
the price of those instruments
And so what we found was Silicon
their balance sheet, and they
so it was essentially just a
has kept raising rates and kept
system, the value of that
was decreasing. And this is
just Silicon Valley Bank. It's
securities, it's treasuries as
of buying mortgage backed
find themselves in the same
happened last week is the bomb
reserves and their balance sheet
people began withdrawing cash
probably stemming from fears of
customers wanting to diversify a
their mortgage backed securities
then that created the cascading
these instruments, in just the
price down even further. And as
the value of that part of their
collapsed. And then on top of
mortgage backed securities that
something like treasuries. And
and that was exacerbated by the
country, basically, going to
Thiel, most notably from
portfolio companies, and urging
Silicon Valley Bank last week,
created a massive run on the
within
48 hours. Yeah, and, you know,
perspective here, too. So anyone
financial industry or watches
will know that there's, you
that when the Fed embarks on a
cycle, that they break
usually break something big. And
know, when the Fed starts
everyone's every sort of market
there waiting for like, the dead
surface, because it always
particular, you really knew it
cycle of the lowest interest
extended. I mean, it was really
craziness, right so much insane
you know, buying, you know,
treasury bonds at the highest
was What a year yeah, 40 year
with leverage, potentially in
bodies to float to the surface
high. And I think everyone needs
in 2008. And 2009. You know, it
crisis in the bailouts, there
that happened afterwards.
creates a scenario where people
is struggling, and on the verge
the Fed and the government can
you know, and say, Okay, well,
you can get trillions, and then
Right. And that's exactly what
what happened after 2008, the
mean, effectively, the Fed can
don't think there's anything the
was scary enough at this point,
able to do it, and Congress
save us, right. You know, kind
crazy things there too, right?
that's the world we're in now.
Prior to that, that there was
and so I remember very clearly,
much uproar over things that now
part of the regular fed duties,
unprecedented back then. So the
consolidated, post 2008 was
that the big banks consolidated,
Beyond that, with the housing
housing market, post 2008, that
of how the housing market
really, I mean, this was, this
was just so enraged, raged about
normal stuff, right. So you
kicked out of their homes left
right. They were foreclosed on,
They were just getting kicked to
because oh, they were, you know,
as if they were the ones that
And then guess what happened up
Blackstone in particular, but
extraordinarily cheap financing
there. And they had access to
invitation homes. And they were
Americans got kicked out of, and
I want to make sure that
when the Fed breaks stuff in a
process of doing, that is always
consolidation. And that's
happen, or at least going to be
Yeah, a friend of mine
he'd seen on on Twitter, that
graphical representation of how
big Wall Street banks have
past few decades. I mean, we'll
pretty quiet, it's pretty crazy
know, what started off, you
Banks is like three banks now.
stuff, like you're talking
right now, it's pretty much
Will some one of these big
ones that buy up a lot of what's
don't know. I mean, it's
think is definitely in the
what happens during any
wealth goes up, and the people
and over again. So it doesn't
happening now or any different
in the past but
not in the really
really breaks things in both
policy. So when they're when
printing money, because COVID
broke supply chains and pricing
why inflation flew 2021 and
break things when they raise
it's true for they're doing
direction when they're lowering
pernicious factor throughout our
screwing you by adding fuel to
conversely, the other way, was
that leads to all this
described.
Yeah, well, I mean, we're at
think it's pretty fair to say
work, make it go Uh,
yeah. And also and
things I was writing about when
was this concept of financial
for example, during that period
example of many, but during the
0% rates, and you know,
institutions and people that
or the Fed could essentially
was your credit card? Right, you
two? Was it three? Was it four?
19%, you know, and so, you know,
again, it's important to
system of the Fed, right, you
pumping liquidity, and then
to the power consolidation and
that there there are people and
throughout systemically favored.
who does not have the ability to
rates. In fact, the only, and I
with mighty ones. But the only
or you know, a Normie, has has
leverage in a big way like the
buying homes. Actually, that's,
because when you buy a home and
what you're doing. So that other
the average person is paying
borrowing at zero and just like
All right, well, how about
of Silicon Valley Bank itself,
and then take a look at
really talked about them too
probably know, by now, at least
this, a lot, at least, the
that a lot of what happened with
allegedly triggered by a threat
rating, a rating agency Moody's,
so I guess we'll go from there
that led to the collapse of this
I mean, sure, so So
my understanding of the
interesting to sort of plays
but what really got it going was
Silicon Valley Bank executives
you know, you're about to be
you remember, again, the
recall that the ratings agencies
that all these junk mortgage
course, they were worthless,
agencies are still around, and
things sort of in a crony or
with that call Silicon Valley
needed to do something and part
trying to shore up their
began trying to raise money, and
back to what happened with
they essentially had to prepay
the fhlb loan. This is when
realizing losses. And when you
you can't, you have to then take
sort of like this downward
realize a loss, then you then
you have to raise money, and
money. And then there's, and
thing. But the really
is the role that Peter Thiel
sense that he really, I mean,
became public that he was
Founders Fund to pull all of
it. I mean, that was the end of
effectively doing that Silicon
You know, and so that's the
yeah, it's it's bizarre, you
can do that to anyone. And
know, Moody's can sort of go but
You know what I mean? Like,
Morgan? Probably not. But
at other regional banks. You
think they're looking at like
Yeah. Oh, America. There's a
first republic is another one.
Exactly. And so the
sparking something. So, you
playing in this? You know, to
is it not, you know, again, I go
would would would it be allowed
the biggest bet like a JP Morgan
similar issues? Would Moody's be
make that phone call? Or that
not, that's exactly how you
And literally, as we're talking
just mentioned their their
limit down as soon as the market
there it is, is taking that back
Right. So So again, I mean,
think people need to understand.
rolling on a total bank run is
feels to me as if it's being
sort of being encouraged,
these on these non Cisco
right, the too big to fails. You
I was just gonna say that's,
this, again, being somewhat
they're scrambling for bank
these bank runs and failures. JP
Fargo are benefiting massively
banks to open accounts, move
as possible.
Right, because, right, exactly,
is that they're too big to fail.
state completely. I mean,
same thing effectively. Oh, and
sent with me and yeah, so so
republic. Moody's puts first
downgrade launch Western
mean, there you go. I mean, this
they were thinking about doing
get a phone call, Moody's would
be told don't do it. So they're
encouraged to do this. You know,
ends?
Yes, second bank on that list,
were just halted as well for
that going on?
Because yeah, it's ongoing. It's
snowball that's intentionally
So let's talk about you
bit ago. So let's talk about him
mainstream media, at least
talking about his role. So you
investigative journalist, I
did not properly hedge its risks
of those risks being
Peter Thiel. So is he I guess,
Thiel on startups that we're
I think that is
also add, it's not on the
founders funds portfolio, but
generally, I think people in the
Thiel, and put him on a pedestal
they're probably they're a bunch
Peter signals something, they're
it's not as natural as founders
just the valley or generally as
Right. Okay. So what's
you have some companies like one
Brax. That's backed by teal and
get billions of dollars out of
before it collapsed. Yeah, which
to telling people to get their
interesting to me just because
people around sort of this Pay
call it the PayPal Mafia. So in
is backed by teal and another.
but one of the early CEOs when
And then you have that
up with open AI, which is chat
to create advanced AI powered
So basically turning chat GPT
can be used to probably get rid
sector. Because you know, what
of my recent workouts that GBT
talking about how it's passing
lawyers. It'll replace
interesting to see some of those
himself Golf was talking about,
guess I forgot to mention that
helped co found open AI chat
part of the same Pay Pal Nexus
to the idea of buying Silicon
a digital bank. Kind of
Yeah, that that was
also made a comment though,
chat. GPT Did you Did you Did
strange, because someone was
from being open to not open. And
to like, apparently, very
said something about that. He
million, just a nonprofit. And
you know, not nonprofit, like,
legal? So yeah. Right. So yeah,
anything there? Because I don't
that.
Yeah, I was, like opening eyes
Because like you mentioned, it
Elon pumped a bunch of cash into
of AI and said, Alright, if
after AI, we want it to be in a
source to an extent, but Sam
AI, I think at one point, he
that can be driven from this
what, we're not going to be
make this a profit driven
understand it's Earth. Elon,
interesting thing to know with
Altman, he's also the founder of
attempt to create like a cbdc.
why they the guy scanning
they're still doing it.
are attacking, I would use the
Africa, scanning people's irises
wallet right now.
Yeah, remember? Thanks.
Yeah, yeah, I think I
was still going on. That's
that. But yeah, totally. I think
marketing ploy was that if you
some free world. Yeah. Like it
little they think of people?
Yeah, well, I mean, chat
have a bunch of people thinking
toy, but they're basically
take all their jobs away. And
upgrade of it, because you know,
algorithm for them for free. And
up with companies like this to
then use all that data that
come in and do a whole bunch of,
automating more and more jobs.
about chat. GPT, but I don't
go back to Peter Thiel for a
remember that a couple years ago
unusual comment about Bitcoin
with Mike Pompeo, who was either
director at the time, I can't
essentially said that, you know,
prefaced the statement by saying
Bitcoin maximalist, he claimed
Chinese financial weapon. And
context of what we talked about
like Elizabeth Warren, for
prominent Democrats and also
the claim that cryptocurrency
national security threats.
Yeah. So so so that
happened, and I went kind of a
Twitter, because it was so it
him say that, yeah, that was
just kind of dissect that a
all of his, what we what we may
intelligent individual. Right?
Right. And so he knows exactly
knows what he's saying. It's not
to come out there and say that
weapon against the United
next to Mike Pompeo. That is a
Totally putting out there. Yeah.
way he doesn't know. He doesn't
seeding that narrative. And that
security Deep State talking
guy who you If he claims to
spin Bitcoin in such a way when
has not been encouraging to
been in many steps of cracking
like China has been, yeah,
advance the cause of Bitcoin
opposite, in fact, so for him to
dishonest. So that's a red flag
actually believe in freedom, you
dedicated his life to linking
American values, which I
to to denigrate Bitcoin, in this
understands that it does embody,
the Republic of the United
so, you know, for me, I feel
talking out of both sides of his
he's doing it on purpose or not,
that he is, he's too often
himself. And he portrays himself
says things that are completely
saying. So a very strange
I know Whitney has done a lot of
Palantir and all that stuff in
security state. But yeah, this
never forget it, you know,
up. I mean, that was a very
huge red flag and destructive
there, which is also completely
I mean, it's weird, because
year later, he's at the Bitcoin
about how great bitcoin is after
financial weapon, and he
guy. So I think he definitely
pro freedom crowd. So you know,
example, as a Bitcoin Maxy, and
financial weapon, he'll call
only built the most like
the hands of every single US
a profile of you know, thought
this war on domestic terror. And
websites like Seeking Alpha,
Palantir to rein in Bitcoin,
and that is not someone who is
know, he likes to posture as
think it's a calculated PR move
cater to a very specific
he puts out publicly, his
that, while at the same time, it
time he's playing a different
it's we I mean,
definitely seems like the person
then every action he takes seems
about himself. Very bizarre guy.
Yeah, it's, it's very
of the hardest people to read,
like, is he trying to take a
out of both sides of his mouth,
for freedom with Bitcoin and pro
companies like Palantir I don't
and also the companies he
Anduril, which is run by Palmer
Rift, left Facebook created an
basically, for US national
creating basically a
Mexican border, ostensibly to
will also keep people from going
not just keep people from going
that's all surveillance drones
know, surveillance towers. I
tower. You know, these guys love
you know, references and all
know, he's also put a lot of
911, which is all tied up with
about them before, and they're
the entire United States 911
right now. And part of that is
put through by Congress last
circling back to that at some
there's a you know, Founders
Orwellian hellish stuff, so I
me to see these guys is as Pro
windy, I just want one
something that I've thought
if they're gonna roll if a big
coming, which I think we all
would it be to have the big
banking to effectively rally
part of what's going on here
now the valley feels indebted in
state, and maybe more likely to
and, you know, some sort of
just I'm guessing that the the
cbdc will be somehow and I'm not
promoted as a public private
I was just gonna say that.
some sort of public private pre
alongside it, maybe following
coin model in Russia through
it's run by Herman Graf, who's
Economic Forum. But it's
But it's already widely in use.
private thing. Yeah. But public,
a public private cbdc
There's no way the government
software that produces a cbdc.
website for healthcare.gov.
they're going to need the tech
Right. Right. And so is this is
Bank in some way? Yeah, I don't
weird things where we kind of
But I do, I do think, and this
on and be part of this is that
now. Because the reason COVID
you know, and it's sigh off the
And I'm pretty ashamed of that.
was that it was so kind of it
at once out of nowhere, that
really thinking about. And so
about the stuff ahead of time,
exactly what they're up to.
Yeah, totally. Well, on that
some sort of public private
necessarily have to be overtly
mind, too, if you're talking
specifically, and specifically,
almost, I'm pretty sure all of
government contractors,
intelligence contractors. I
both. So, you know, they could
infrastructure, and it could
you know, an entirely Public
yeah, I think the way
banking crisis is going to
gonna fail, and they're gonna
alright, the banks don't work
them, the Fed is going to
here's your cbdc wallet. One of
it, download it, right, you
before we get there, let's
of things that have already
point of discussing where things
likely to play out from here on
about Signature Bank yet, but
been claims that it's shut down
is coming from crypto venture
Twitter. But there's other
claim. And Carter's claims
Frank, who is the guy from the
Act stuff, post 2008. And he was
banks board, I believe, in 2015.
Signature Bank didn't really
shut down. So the question is,
timeline here? What doesn't make
on? So whoever wants to start on
It was really weird
on a Sunday. Last Sunday, after
the fact that was closed on a
potential to open up on Monday
If that is what was happening
with the shutdown, is that what
Silicon Valley Bank where the
we're taking over on Sunday, the
Services stepped in and said
before market open on Monday.
earlier this week, he was pretty
liquid enough, this service
that the NY DFS stepped in and
Yeah, and it was interesting,
to research what happened, I was
right, and try to read as much
about it. And it was really
was saying the same thing, which
were just like, New York
decided to shut down Signature
was no timeline, there was no
that sticks out here is
silvergate. I remember, as we
network which was crucial to
ability to get in and out of
coins and all that stuff. And so
it appears to me clearly, that
of signature was to get rid of
make that sort of ecosystem
York Department of Financial
like New York is, of course, the
to stuff like this, because it's
womb of too big to fail, right,
And so you know, that that that
protect that at all costs. And
that that strange in itself. But
fact that I mentioned earlier
FDIC, apparently is saying that
close down the crypto
what is going on here? So yeah,
signature, I'm open to other
see anything about assets as so
earlier, Silicon Valley Bank and
into selling assets, which
variety of reasons. I don't I
signature, perhaps they did, but
again, I'm waiting for someone
exactly triggered Signature Bank
There's the end of the day,
impossible, that the two, the
networks, Sen. And Signet, just
up dead.
From like, the asset side of
particularly you think, if they
wrote the bill that defined the
these banks was sitting on the
astute to making sure that the
was, was capitalized the correct
very, very weird how it
happened on a Sunday sort of out
Well, here's one
so the the bailout of Silicon
talk about next, I think the way
they used to offer that bailout
So in order to argue for
be like, well, systemic means
failing. So I don't know that
claim that we think Signature
fail. And this is part of our
bailout. I mean, maybe I'm wrong
think about think about
mean, even if they said that,
mean,
I know, but it's the
the public justification, right?
of pre emptive stuff going on,
the other day about the web
and they're talking about, you
because of ransomware and all
to pre preemptively go after
some sort of cyber, financial
they love pre emptive stuff,
the war on domestic terrorism or
quickly becoming a major facet
policy. So
well think about it to
waited 24 hours probably the
do anything because Yeah, don't
it's like, they were like, Let's
huge bailout. Right? That was
Yeah. Contradictory in many
up bailing out Silicon Valley
really were worried about
they shut down signature bank
have a similar profile or at
have a run on those banks, as
wanted to stem contagion, they
make it seem like signatures are
hardest to keep it open.
But maybe if they wanted to
signatures, they're like, well,
this collapse of Silicon Valley
shuttering of this is linked to
Right. That's, that's
There's the other thing,
was facing some major criminal
was shuttered.
I saw I saw that I
just say, again, you know, if
all you have to do is say, Hey,
mean, I think they do this to
do these days, you know, when
they did this, like we just
well, like, Oh, we're gonna
signature as a we're gonna
people are using your crypto
crypto to for money laundering
Right, which at the end
were just looking for an excuse
networks. Yeah, you know, for a
Yeah, I think that's true.
know, the feds come in and
laundering. I mean, it's kind of
security state launders a ton of
tons of money for drug cartels,
Katherine Austin Fitz, have
the drug trade stop tomorrow, a
collapse, because they're
know, the money laundering of a
whether for, you know, cartels
whatever, like, when they
these kinds of financial crimes,
you know, sometimes there's an
that's quite probable here,
that some of this legislation in
Warren's legislation that argues
security threat. It's about
money laundering are part of the
But it's not like getting rid of
laundering, money laundering, of
existence by many decades. So
even if crypto magically
now in the in the
think that's something really
into and really see in the minds
biggest perpetrators of money
are the big banks and the
Bitcoin. Yeah, this goes
back. And this also goes back to
we're not allowed to have
ultimate privacy. You know,
can do everything in the
if everybody, if everybody sort
tracked, then whoever is in
a good blackmail thing, too.
you know, what everyone's doing.
someone and say, Hey, by the
two years ago, and blah, blah,
can either play with us, or you
it's like, yeah, it's a great
this idea of financial
a long time. In my book and
about how Armand Hammer the guy
was trying to acquire a major US
congressmen had open accounts
explicitly of what he called
you know, if there were people
early 80s, you know, I'm sure
I think the only the
could say about it is like, what
do is take all of these things
effectively since the beginning
blackmail, financial blackmail,
probably find instances of that
you know, or city that's beyond
just what humans kind of do. But
what what what they see what
do is just like, completely own
have it on a level that is so
that it encompasses everything
market or way Go rumor freedom.
such a brazen goal, that I sort
But But yeah, it's certainly
going just for everything. Well,
we leave signature, I just
news A new report out today that
York financial regulator that
shutting down Signature Bank,
quote, a significant crisis of
leadership and quote, yeah, it
Yeah, I know, they can say that
rid of their crypto. So we're
whoever buys the bank has to
It's just like, we
Bob.
Yeah. If you didn't think
crime, especially in New York
reconsider. Wild that's crazy.
It's egregious. It's
Well, what will come of it?
talk about the bailout then? So
administration said about the
has that changed the situation?
hook? Even though the Biden
And what can we expect regarding
So we're diving into
bailout, I think, what the
Federal Reserve, and the FDIC
will buy your debt instruments
earlier, a lot of what caused
banking sector was the Fed
value of the debt instruments
And they're still, if mark to
significantly depressed. And so
Fed stepping in and saying, Hey,
worth 85 cents on the dollar,
and we'll hold them on our
future, you can you can buy them
markets settle, and the banking
essentially, QE five is started.
explicitly say this, but it is
Fed steps in buys depressed
different than past QE, where
But that's essentially what
Yeah, so So one thing I would
specifics are that they're not
they're they're Qalat. Like
collateral at par. And then
money, right. So like they're
like, technically not a
so that's the, I guess the
effectively, it's the same,
access to money at par value for
trading at par value, which is
about again, like 10 years ago,
riding poppies after floppies
so insane. But it's like, people
Whereas that would be the
Whitney, has her portfolio at
months ago, she bought all the
then they crashed 50%. And now
wealthy. And then then the Fed
worry with me. We're gonna
we're gonna just go back two
they were at, and we'll just
And you're going to be fine,
nice? Right? I mean, it's, it's,
effectively pausing reality for
money and be liquid. And so you
you want that that's important
but the bigger point is that?
like this? Right? I mean, once
Once you go down a path like
mean, you really can't. And the
could kind of go back to normal
what happens. They raise rates a
crazy stuff again, right, right
know, the taxpayer angle, though
know, JP Morgan this morning is
liquidity that could flow into
And what their that 2 trillion
basically took the assets of
treasury bonds? I'm not sure
securities have non non too big
How much do they hold on their
their numbers 2 trillion. So JP
that 2 trillion could just be
they if they want to use this
think about that. I mean, just
taxpayer is not not only on the
saying like, this is so much
is this is, is again, this is
salvo in like, a coup, you know,
just a coup.
I heard someone describe it
but socializing losses,
yes, yes, yes, it's
function. I mean, to put it most
and not enough dollars. And when
dollars out of the market, like
debt that exist, become
function of how the Federal
fiat monetary system operates,
the fit, there are not enough
on the debt level and the
So like, functionally, the Fed
more dollars to begin trying to
really interesting, we go back
forward to 20 22,008, fed steps
lowers rates, and then 2016 2017
then we get to 2020. It was
2019, we're going to reap a
was driven by Fed policy, trying
system, something broke. And
pointing 20, COVID happened, and
print a bunch of money, that
three years later, a year and a
rates and pulling dollars out of
I think what I'm trying to
depression of the time between
something breaking, it's
And so right now, the Fed is
money that the Fed printed in
money that they're gonna have to
the banking system was going to
trillions and trillions of
to exacerbate inflation
really didn't want to be put in
rates because inflation is still
Yeah, but Blackrock is
is going to keep tightening. And
the Blackrock and at the end of
Fed to alter its monetary
or going direct policy. So I
means. But maybe Blackrock has
reasons, we don't know what they
they know that we don't know,
the Fed is going to keep
one commentary I saw
Sunday, someone was saying that
raising rates while keeping
the banks don't have to
they'll still, and therefore
functioning. But we could keep
and kind of keep keep messing
but my but my feet, and that is
think, I think if they do
to take that more seriously. But
personal level. If I had to be
say now that they're pretty much
is because with the the drop in
the fastest drop in the last, I
the two year Treasury yield was
1%. Three days, right. And what
historically tends to always
saying you're there's no way
fact, you're gonna compete and
you know, essentially hundreds
that. And my my conclusion would
the market is accurate on that.
Yeah, The banking crisis is
not isolated to the United
and affecting the global
to have to lower its Yeah.
So you have what we talked
other banks, I think all based
And then you have this the stuff
right now, which has led many to
spreading into Europe. But
things to know about Credit
talking about not that long ago,
investigated, silver gate was
it was silver gate that was
delay, among other things. The
And Credit Suisse actually had a
from March 2, there were there
Suisse breach, spills, personal
clients all over the place. And
that Credit Suisse delays, and a
SEC. So there seems to be. And
Credit Suisse just can't catch a
they had, you know, their
So anyway, that's interesting,
Suisse obviously having a lot of
know, now that like the Swiss
in, and all this stuff to rescue
there's some problems there. But
seems like they were having
know, if they think they
they see an opportunity to sort
their woes. Any thoughts on
I mean, Credit Suisse
position, even before this week,
of deposits last year, and they
critically weak. And I think a
looking at Credit Suisse and
seems like this banking crisis
is just going to be the final
Suisse. And I do believe that
in overnight to provide $54
But it seems like as US markets
beginning to price. The
failure, almost it's almost a
credit default swaps are
Yeah. So so yeah. As Marty said,
dying for like decades, kind of
Yeah, but so have a lot of
if Credit Suisse falls, what
and deep shit, like Deutsche
Right, right. And
well, here's the here's the key
just a whole different can of
discussing, but also could lead
we've seen with the cbdc.
with I mean, what they would
unimaginable to my mind, you
know, their assets and what they
linked to everything else, you
would be, it would be, you know,
you know, happen there. So, of
I think did, as Marty said,
something last night. But, you
to the big point, which is, this
sustainable for any long period
do these giant bailouts or
doing is just kind of keeping it
the underlying issues, like, the
being solved, none of this stuff
just keeping everything sort of
what that does then is, which is
years, you just build up more,
you build up more of a bigger
bigger problem down the road.
the powers that be completely
they know, this is why there's
right? Because they know a reset
trying to do is they want to
allowing the public or even you
Congress to have a role in
essentially preempt that process
in their minds. And then once
just just push it all in there.
where I think this is going, you
to really be open to the
to actually attempt the reset in
need a lot of fear, and you need
so sort of like the panic that
times 10. And that's what I
next year.
All right, so one question I
this. So if the crisis is
is, and it seems that this is
par, if not worse than the 2008
bail ins, right? So after 2008,
comes out and it's like, oh, no
ins to happen, right? Or at
for bail ins to happen and bail
bail outs is taxpayer money
ends is when banks use depositor
right. So what do you think, is
that if things worsen?
I think it's pretty
at all, and we begin to see
world. I mean, Lebanon,
last couple of years, they've
they got put their central bank
in such a situation that we
200,000? Let me Lebanese pounds,
SARS now. And the situation is
United States or in Europe. So I
table, they're going to print
be surprised that do balance on
Yeah, I think. So that would be
balance, right? They were the
of, and then then Bitcoin
after that. I remember. If they
is where you depositors take a
is the exact opposite of what
In my opinion, that would be
right? I mean, to to have bail
mongering thing to people,
wrote a couple of days ago, I
facilitate the rollout of CBDCs.
make holding money and banks
bail in would definitely do
would make people understand
And that can be haircut at any
for a solution. And of course,
already have our solution, you
your average person is going to,
even business would say, you
quick. And there you go, you
solution, just hold your money,
And it says, it's not, you know,
not being leveraged, it's just
times. And it's completely safe
need some sort of fear point
balance is a trigger, I don't
triggers. But that's a potential
And I think balance actually
could be like a normalization
we're seeing it in China
necessarily be a bail in but it
normalization of the money and
date, where you can have your
AirDrop money into it. They'll
spend this and you can only
other goods on this list. Which
That could happen as well.
Yeah, that's a good point. I
this forever, which is, which is
to spend money, which which is
just AirDrop you money that you
mean, we just like rats in an
So um, as we wrap up here, I
wanted to talk about, too,
been affecting stablecoins,
issuer circle. So there was a
because of they I think they
companies after the collapse of
course, you know, not
they've decided to have
Mellon, which is funny to me
bank and pop up in my books a
look at how a lot of the other
for example, they have their
bank that was super tied up with
themselves. It just kind of
these stable coins seem to have
don't know, most suspect banks
it seems like there's an effort
extent on stable coins, or at
know, certain banks that are
unfortunate agendas that we've
you guys have any thoughts about
affecting stable coins and sort
coins and a likely cbdc launch?
I think, as Michael
discussion, like the USD stable
risk. But if you look at the
could see it as an incredible
can co opt circle, consolidate
control, and then somewhat
very, just fully control it, I
on the table and bet on who
the public private, the
would be high on that list. So I
sort of like a coring of circle
important banks. And at some
government or the Federal
Hey, we're gonna need you to
Yeah, that's, that's a
really good point. So to expand
everything you said. So if you
back to my point earlier, which
sort of organic way you could
there's a lot of bitcoins is a
right? I mean, that's exactly
do. And then there's the WEF,
upon themselves to reset us into
these two competing forces that
effectively right now. Um, and
I'm starting to view as crucial
thus far you've had, and I'm
network Sen and Signet in this
a wild west a little bit of a
last few years with around
24/7 networks, right, that, that
ecosystem. And that's more or
it into this sort of
of things. But I think now the
having gone too far, let's say,
this is to organic, right, it's
And so I think Marty made a
could be right now, we could be
of, of the government and the
these, and they may have already
agree. I mean, circle has always
like red flag to me. Always.
And so this, this goes back to
is that there could be this
know, you get to see certain
stable coin, let's say it's
contender, in my view as well,
sanctioned in a way right, so
six months is all at JPMorgan,
circle and this USDC and it's
then they can just allow it to
could sort of effectively be
ostensibly run privately, but
They could they could create a
no, no, now we need to take it
Right. And that's, that's one I
happen.
Oh, man. Well, one thing
Want You just said you know how
mentioned earlier, you know why
After FTX but not Farmington
was renamed to be. They had just
very interesting. And one of the
claimed to invent CBDCs was, you
you know, this particular tiny
Washington state that had all
Alameda research, they were
transformation and, you know,
you know, maybe, maybe that's
ties to cbdc Architects, or
would not surprise me at this
else you guys would like to add
definitely want to let people
they can tangibly expect in the
you know, maybe some solutions
about having their money in
I mean, I think Michael
times are tired, the Fed and the
heels, and they're going to try
cbdc future where they have full
all my energy and time on
is pretty binary, we either get
CBDCs, or we're going to truly
system built on Bitcoin. So
thinking of how to protect
Future? I would highly recommend
yourself about Bitcoin and once
confident that you believe
something worthwhile. Acquire
don't normally get bitcoin, do
Bitcoin has native properties
a wallet that that only you can
company can stop you from
getting into Bitcoin, it's not
you buy it, but that you
do not want to hold your Bitcoin
be a pressure point that the
in the future, they will shut
it is very crucial. While we
people acquire Bitcoin and get
control. Because at some point
the Federal Reserve can flip a
get bitcoin.
Yeah, yeah. From that, from my
think that, you know, as Marty
think that's right. So, you
understand, I think everyone
know, if we're going to have a
networked world, with more
very rigidly hierarchical
panopticon world, which the West
United States one as well,
particular, let's say, you know,
comes with the former right, the
with freedom, there's a lot of
with that. And I think that's
was saying about Bitcoin. I
properly, you know, you really,
responsibility needs to take,
so people need to also be
And this is like the primary
way, I firmly believe that it's
responsible for their own
and just programming to get the
these things to push forward.
because that is what's going to
response, you know, your, your,
of course, like the media, you
mainstream media, like,
warning on every single
so poisonous to your mind. It is
think the best advice I could
happens, that's big and scary,
for a second. You know, take a
react because I think,
like us to that. We have social
reasonably large. You feel the
conclusion or have a response or
And I've found at least
to not do that. Because let it
what's, how did it how does the
the public reacting? Why are we
so that would be my my advice
mind, really guard your
that is what's being very
with, with every sign up to
want to be.
Yeah, I think that's a
I've talked to some people from
live in Chile. And, you know,
collapse, you know, about 20
them, you know, is the, the best
situation is have is not given
because that's going to lead you
may otherwise have not made, and
be better off if you can keep
in the economy, and you know,
Argentina, this time, we're just
sector of the US economy, like
So you know, if too much stuff
definitely see what will happen.
to some people who aren't
or interested in crypto because
what would you say? What do you
know, have accounts at some of
Wells, Fargo, etc? You know, Is
they think about putting it
mean,
all the big banks are
essentially, the only way
forward is the Fed printing
the banking system, the way it's
banking, and money printing at
for failure. I mean, personally,
in the bank as you're willing to
believe and I know, it's a
very emotional about it. And
educate themselves about it, I'm
just go buy bitcoin, right now,
yourself about it. If you spend
think that you'll come to a
a lot more sense than the
personally, I hold most of my
the banking system. That's what
alternative to the big banks, I
many there systemically
that will get bailed out every
small community bank, but as
banking crisis playing out right
safe. It is really weird times
the Federal Reserve has
in any confidence we could have
Yeah, so So from my perspective,
to two guys that probably
significant bank accounts for
nine, I mean, I immediately I
fail personally, you know, since
whatever money I need in the
I, you know, I'll put money in
I need to do that, or what I
I just been, you know, I tried
banking system for over a
the best guy to ask about, like,
system, because I try to stay
I'm not going to talk about
some precious metals, what I
do, like if someone said to me,
can't buy bitcoin, you can't buy
those are not your options. So
got a bunch of money in the
is I would look around and I
my life more resilient? You
take do I do I start to grow
landscape? Do I get chickens
what, do I stock up on
stuff? You know, your money
It's usually what I tell people.
exactly. So So for
example. And I haven't done this
reasons, although it's always in
clearly, there's going to be
the US and China you know, and
bad now, you haven't seen
point, and I don't know what
in 2027 I have no idea. But at
products that are made in China
find their way here anymore. You
So, you know, you know, so So
sort of things you know, do you
things will be important to your
coming years out, there's,
important one energy is another
shut having your shelter your
need? Do you need certain
know, things like that. So, if
not wanting to, like, put your
say, financial assets, I would
having things that you know,
right? Like, don't stockpile
use, but if you know that you're
over the next three years, why
know, if you've got the money to
scared of that, you know, the
know, this is what my wife and I
dedicating 2023 so far to this.
It's been busy, but you know,
that you don't have, that you
would, I would, I would
think about that, like, where do
for me, personally, there have
just my inability, really to
physical world at all, you know,
like, nobody knows how to do
frickin superintendent, like,
I felt very, I felt very
you know, I'm taking a
in the carpentry, trying to
it's a massive learning curve,
Bitcoins, just like drinking
that's necessary. So yeah,
no one, people in the US were
generational level, the ability
stuff, like the knowledge base
come back for the US to have any
forward. Right? Yeah.
So we'd like our kids,
that kind of stuff. Like, like,
woodworking classes, too. So
you know, don't just be this
even I did this too, I just buy
well, when is the world gonna
but really, you know, every
single don't waste your time, I
there, every single one of us
and we probably know what it is.
better at this right? Or I wish
better at it. Right? Go learn
Yeah, you don't want to be
what's coming. Because I mean, I
know, if this gets ultra super
left penniless, you know, the
Oh, well, you know, here's your
some money, you know, from the
but it's only in cbdc form. And
can only use it on the things we
Exactly. And like even
connections, we started buying
neighbor, you know, I could walk
months, it's been great. We want
I've ever had in my life, like
just just just, you know, there
that regard.
Yeah, that's, that's something
movement within Bitcoin, like
concept of going out and shaking
can Ranch, maybe you can't farm.
your car and drive to your local
that farmer's hand and figure
if you're, if you're not going
you're gonna be able to be self
or ranch to supply your own
you that are and they need to be
community and connections
Please, Yep, totally agree.
All right, well, sounds like
same page there and obviously
situation plays out over the
issues obviously are not going
said, so people that are
podcast, how can they follow you
elsewhere?
Yeah, if you want to
Twitter at Marty bent. And I
find my newsletter. There are
in the digital age and then the
rabbit hole recap.
Yeah, from my end, I'm mostly
Liberty, blitz BL ITC Liberty
blitzkrieg, though if I don't
there's a ton of stuff there. I
any any word you think is
lot of articles I wrote almost
I'm sure I'll write again at
not Not at the moment. So yeah,
Twitter, and that's effectively.
Okay, well, super. Well.
back on to talk about even more
I'll have you guys back probably
depending on how all of this
everyone for listening,
this podcast. A big thanks to
And yeah, we'll catch you on the
Thank you