Predictive History - The Story of "Civilization", "Secret History", "Game Theory" and more - Game Theory #17: The Great Reset

Episode Date: April 1, 2026

Game Theory #17: The Great Reset

Today, I want to look at how the global economy will collapse, specifically how the US economy will collapse because of this war. Now the argument I want to make to you today is that financial collapse do not happen accidentally or naturally. It has to be engineered. And this is a very hard concept for us to understand. So in economics, there's something called the boom bus cycle, which basically states that in capitalism you have the economy booming, then suddenly, for whatever reason, it collapses,

okay? It's called a boom bus cycle. And the idea is that if you study economics, they teach you that this is just a natural part of capitalism. Because in good times people spend too much money. They become overconfident. And so then they waste a lot of money and then it collapses. The economy turns bad.

And so you have to focus on being more lean and efficient and resilient. So think of, you know, gaining weight, okay? You gain too much weight and then you feel bad, so then you lose weight. And that's the idea of, um, the boom bus cycle. The problem though is that no one can explain properly how and why suddenly the bubble pops okay what's the mechanism or trigger for the collapse? If you show economics you will never ever know the answer. So we are going to focus on today okay so again the internet will notice this but I've never studied

economics I don't know much about economics but I'm curious as to why this happens okay why is it that bubbles pop how does how do economies rise and fall okay so I'm not an ex expert I'm not even a professor yes I understand but what I do is I engage in speculation for fun, for entertainment, okay? So just see this as a fun class where we're going to explore some fun topics that have no scholarly basis, okay? All right, so just keep this in mind, guys.

All right, so let's look at very quickly the main explanation for why booms and buzz happens. And this is from Andrew Ross Salkin, who is probably the most influential financial journalist in America. And he wrote a book called 1929, which looks at the start market collapse of 1929, and he offers

a very good explanation as to why it happened. So, Emma, could you read from me, please? Lengthy uninterrupted booms, like the one in the 1920s, produce a collective delusion. Optimism becomes a drug, or a religion, or some combination of both.

People lose their ability to calculate risk and distinguish between good ideas. and bad ones. Okay, so again, this is a set explanation for why there's a bubble burst, because it's illusional, and then it's like you fly too high, okay? But you're not supposed to fly, so then you fall down to the ground eventually. It's just gravity, okay? The idea of gravity. But I want to, what I want to show you today is there's actually another explanation, which is this is all being engineered. There are people behind the scenes who have the power to cause economies to rise and to fall.

So let me give you an example of this. All right. Let's just say you're a bank. All right, you're a bank. And your job is to take those money, save it, and then you should properly in order to promote the economy. Okay? So let's just say we put the million dollars into the bank.

Okay? And what does the bank do with? the bank then lends it out to entrepreneurs, right? So maybe I want to start a restaurant, and that's why I borrow a million dollars from the bank. Okay? Question, how much money is a bank now?

It's zero, right? Okay, that's math, guys. Look, if I take it a million dollars and I lend it out a million dollars, I should have zero, because that's this basic math. But that's not the answer. The actual answer is two million dollars. million dollars. It's never too early to plan your summer story in Europe with WestJet, from

rolling countryside to cobblestone streets. Begin your next chapter. Book your seat at westjet.com or call your travel agent. WestJet, where your story takes off. And what you need to understand is that each bank has the ability to print its own money. and the bank is a mechanism for liquidity in the economy, okay? And this is a great illusion. This is the delusion, okay, behind the economy, where money is just an idea, it's a concept, it's a collective hallucination.

All right. Now, but the problem is there are thousands, tens of thousands of banks everywhere. So how do they know how to coordinate together? And this is something else you need to understand about the system. There's actually something called a signaling mechanism, signaling mechanism, okay?

So all these banks are separate, but they are linked together into something called a central bank, okay? Central bank. And what does the central bank do? The central bank signals whether or not to lend money or not to lend money. And this mechanism is called the interest rate.

Now, again, if you show economics, what they will teach you is that depending on the interest rate, if it's low, maybe 1%, or 5%, or high 5%, then that would determine how consumers behave. If the interest rate is 1%, what this means is I can go to the bank, get money, and buy a house, right? If it's too high, 5%, then I don't want the little bank to buy a house. And this is what you're taught in an economic class.

But there's actually another explanation, which is the interest rate is not to signal consumers or homeowners to buy, but rather for banks to land or not. It doesn't make sense. Because the banks, what they can do is, depending on the interest rate, they know that, okay, my job is to release more liquidity

into the system, release more money into the system, and therefore I would make it easier to take out a loan, okay? But if the interest rate is high, then I know, okay, I must not release too much liquid in the system, therefore I will make the loan application hard. Okay? So, in other words, the interest rate is not,

it is not set in order to guide consumer behavior. It is set in order to coordinate liquidity in the marketplace. Okay, doesn't make sense. Okay. So these are two very curious. aspects of this system that people don't really understand. So in order to understand the system, I will explain to you how the world works. Okay, now I explained this before, but I want to summarize and apply it to this scenario scenario, okay? So the first

thing to understand is that we live in Plato's cave. Okay, meaning that we're all chain to the floor and we're all watching a screen and behind is this great fire where the elite create puppets so that we can collectively hallucinate our own reality. All right? And this mechanism that allows us to coordinate our imagination is, of course, called money. Right. So think of money as God, right? And so what money is doing is, it's focusing our minds in a certain way that creates our reality. All right? So remember this idea and keep this in mind. Okay, so because of this concept, this allows us to create the world that we live in today.

Okay? So remember how the world is structured. You have the empire, but then you have the game masters. Who are the game masters? They're the people in finance. Okay, and this includes Bank of Inactual Sentiments, World Bank, Inactual Monetary Fund, Wall Street, Sea of London. Okay, so these are different financial organizations

that coordinate together, and they are the game masters. And what they do is they control how US dollars, which is the currency of this game, they control how US dollars moves around the system, okay? So USD. And this creates, of course, the global economy. But you cannot allow people to think that they're actually a set of people

in this game because people will think this is not fair. It's not transparent. Right? And it's not a clean game. So what you do is you create multilateral organizations called the rules-based in natural order

like the WTO, UN, and you make them believe that, oh, it's these impartial organizations that actually control the game. So it's fair and it's transparent, and it's accountable to the people. Okay?

And then you reinforce this using media, education, and culture. And together, these three will create the values and norms that make us believe that this is a fair, open, and transparent game in which we can all win, okay? So that when there's a collapse, It's not because there are people engineering this collapse behind the scenes. It's because it's a law of gravity. This just happens naturally in this game.

It's no one's fault. It's just like we were too lazy and corrupt. Okay? All right. So certain things to remember of the system is that this system is not as clean as you think because there are opposing forces to it. All right. And these opposing forces are forces such as nationalism.

Okay? Or ethnic identity. Then you have social democracy, individual rights, right? And then of course you have religion. All right? So there are these countervailing forces that try to break apart the system. So then what happens is that there are other systems

that keep the system in place and respond to these countervailing forces. All right? And they are intelligence. Spies basically crime and science and behind these three forces are three sets of powerful institutions. Okay? These are Transnational Capital Secret Societies and the last is elite families Okay, so people call them the Illuminati, okay, it doesn't matter, all right? So this is how the world works.

And underpinning this elite is something called the occult, which we'll study later on. All right, so certain things that stand up about the system that you may notice is, hey guys, look, Transnational Capital is also the game masters as well as the global economy, okay? This is important because, remember, this system is the parasite, and this system is a host.

So Transnational Capital is both the parasite as well as the host. It's both the game master as well as the player. Okay? So this obviously leads to a lot of corruption. So the question then is, how do we get this system? Where the system come from? So let me go into some history, okay?

So the year is 1688. And in Britain, that's something called the Glorious Revolution. Think of the glorious revolution as a marriage between two empires. The British Empire and the Dutch Republic, okay? England and Dutch Republic. At this point in history, 1688, the Dutch Republic is the richest area of the world because it controls the spice trade.

In this time in history, spice is the most valuable commodity. The problem of the Dutch Republic is that it cannot defend itself, in Europe, okay? It's easily invaded. It's also Protestant. So, and they are being attacked by the Catholics, Catholic France, Catholic Church, as well as the Habsburgs, the Holy Roman Empire. So what they agree to do is they can buy, they agree to combine their forces, all right? So what happens is the wealth of the Dutch Republic goes to England, all right, and creates them a call in 1694, the Bank of England.

So this is a private bank that is not accountable to the public. What it does is this. It prints money and who buys it? Parliament buys it. And this is a massive innovation that allows the British Empire to conquer the world. Because before, if you're rich, you're rich, if you let your money to a king to fight wars, that was dangerous because the

king could die or the king could lose the war or the king could not pay you back, okay? But if you lend money to parliament, which is the nation state, then you're guaranteed to get your money back as long as the nation is still around, okay? And at this time in history, England is the safest area of Europe. because it's an island protected by the Royal Navy. All right. Okay, so this is an innovation that forever changes human history.

And there are three major characteristics of this system, okay? The first is the idea of profits are privatized. Losses are socialized. If you're a rich person in the world, you want to put your money in the best, Bank of England because there's no way the Bank of England loses money. If England goes to fight a war and it loses, England pays for it. But if it wins the war, then you get the money

for it. Okay? So this is the first concept you need to understand. All profits are privatized, all losses are socialized, picked up by the nation state, the people. That's the first thing. Second thing is in the system, the way you generate wealth is for activity. And what does that mean? It means wars. Right? So if I give you money, you have to go do something with it. You have to go make more profit.

And the way you do that is through fighting wars. And that's why the British Empire started to expand very quickly around the world. Because it needed to generate profits for the bankers. Okay? So this includes, of course, the Napoleonic Wars, seven of them. It includes something called the Great Game, a war between Russia, and Britain for control of Central Asia and also India, the conquest of India and then the conquest of China okay okay doesn't make sense the open wars all right so profits

so the same characteristic is like you're always creating more activity all Okay. And the third thing is it's transnationalism. Okay? Open borders. So it believes that capital should be able to move around from place to place. And it needs to build systems in order to move capital from place to place. Okay?

And the last thing I want to talk about is, okay, this is great for the bankers, but the people look at this and they think that this is an unfair system. which it is, right? So now you have to brainwash the people into believing this is a fair system. And that's why you create a new idea called materialism or money is God. And so what was happening was that Transnational Capital,

Bank of England were sponsoring major intellectuals to come up with the major ideologies to support the idea that money is God, okay? And these include, sorry, John Locke, who argued that private property is a God-given right. It is an inherent right, as much as freedom, as much as happiness. And he's the founder of a theory called empiricism. And imperism states that we can only know what we ourselves experience.

It is not feasible, it is not practical, to try to come up with a fear of the world beyond our experience. So don't think about God because God is beyond our experience, okay? Then you have someone named David Hume. Okay, David Hume. And David Hume

argued for skepticism. And skepticism just says that even that you know is actually not valid. Because what you know is just based on your belief. Okay? So Rome is the capital of Italy. Have you been to Rome?

Probably not. Okay. So where did you learn this? You learn this in school by memorizing this fact. So basically, we should be skeptical of everything we know because most of stuff we know is either custom or habit. Okay? So that's the idea of skepticism.

So now the problem is, okay, skepticism and perism just means that we don't really know anything and God doesn't really exist. So how can we design society? And so this creates a new idea called eudaitarianism. We'll just say that if it is useful, if it gives us pleasure, it must be good. Okay?

If you take drugs and you are happy with it, it must be good. If you like spending money, it must be good. Okay? And this is from Bantam and then John Stuart Mills will make some adjustments to it, okay? But this becomes the very concept of liberty. Right? Liberty just means that you are free to pursue as much money making as possible because that is the often good.

That is what gives you the most pleasure in life, spending money. Okay? That's what liberty is. If a country prevents you from making money and spending money, it's an evil dictatorship. A good country allows you to enjoy the pleasures of making money. Okay? And then what will happen is that these are the three major philosophers of materialism of British liberty. And then you'll have people like Marx come in.

You'll introduce the idea of dialectic materialism. dialectic materialism, which is say like the world is one of class struggle. It's not between God and us. It's not between the divine and the material. It's one between the poor and the rich, and that's it, okay? So Marx is taking out the divine from the equation. Then you have Darwin, their evolution, which basically says, we're just animals, man. Okay, that's all.

We're not divine beings. We're all just animals. Then you have, you have like Freud. Sex is awesome, guys, okay? That's what we should be doing. We should be making a lot of money and then having as much sex as possible because that's what we are. We're just eight.

So this becomes a very foundation for the idea that money is God. All right? Okay. So what then happens is that transnational capital, which has conquered the British Empire, it's now seeking new opportunities for its investments. So where it goes next is of course America. The problem is that the Americans just had a revolution to destroy the American, to get rid of the British Empire, right?

So the Americans don't want transnational capital. doesn't want Bank of England or City of London to come in and conquer it. So what happens is the state of London, the Bank of England, they use agents in America. And these agents, of course, are called... There's three of them. Okay, well, there's actually a lot. But these agents include John Rockefeller, Carnegie, okay? Andrew Carnegie, J.B. Morgan, Vanderbilt.

And they will by themselves monopolize different industries with the resources and the capital of the state of London and the Bank of England, okay? So of course, John Rockefeller monopolist's oil. Okay. And then what will happen is that these very powerful agents of the state of London will get together and they will create a system model off the Bank of England.

And this of course is called the Federal Reserve System. All right, 1914. And shrink it enough, after the Federal Reserve System is created, three things happen, right? The first is that America enters World War I. Then you have the 1929, 1929 stock market collapsed, followed by Great Depression, and then in 1941, America joins World War II.

Okay, do you understand? So, Federal Reserve System means that, Like Britain, America is now controlled by transnational capital. And it's the same system now, where profits are privatized, losses are socialized, and where it's important to open the country up to capital movement.

All right? Okay, so as we know, America wins World War II. And what it does now is that it tries to move the system or on the world, specifically Japan and Europe, okay? Where it is able to control the territory. And eventually it fights a Cold War with the Soviet Union, but then it wins.

And then it basically, after collapse of Soviet Union, for the next 20, 30 years, it has complete control over the world. Something we call a unipolar moment. All right? And during the unipolar movement, what happens is that main factory from America shifts over to China, and America completely focused on finance.

This leads to the 2008 great financial crisis. Okay, so let me provide some background about the financial crisis, okay? You don't have to know everything. I'm going to give you a lot of details, but I just want you to understand the basic structure of it, okay? So what allowed the great financial crisis happen is something called subprime.

Subprime just means that you're letting money to people who can't pay you back. In this context, it's letting money to poor people to buy homes. Before banks, they want to do that. Okay? But there are certain things that happen to make Subprime happen. So the first thing is that Bill Clinton, he really wanted to, increase minority ownership of homes. He wanted black people to buy more homes. But again, black people were historically poor, so the banks didn't really led money

to them. And that's why Bill Clinton encouraged the government to help minority homeowners, sorry, minorities buy homes, okay? So that's the first thing. Okay, and this was a noble goal. But suddenly that happened, which is more important, is in 1999, Bill Clinton repealed something called the Glass Stegle. And what is this? The Glass Stagel Act just said that if you are a bank and you take money from depositors, you cannot engage in risky lending, okay? If you are an investment bank, okay?

If you're a retail bank, you cannot engage in risky lending. landing but if an investment bank a private bank you can engage in risky lending and so that's what the act said versatile okay it's trying to mitigate risk in the system but by repealing the GASTATES state act what would you do is you combine retail and investment together and so these banks now become very large and once it become very large they need to create financial vehicles in order to generate more profit okay and And at the same time, what's happening is that because America has the unipolar moment,

everyone wants to invest in America because they think America is the safest place to put your money, okay? So this includes the GCC, the China, Europe, and its pension funds, and also Japan. Japan is investing in America because something called the Yen-carry trade. And this is one of the dumbest things in the world. Because at this time in history, Japan is suffering from deflation, right? No one's spending any money. So what the government does is that it lends money out to institutions at 0% interest.

Okay? Now the institutions are supposed to take this money and promote more liquidity in the system. But instead what they do is they take this money and use it to borrow or buy US treasuries, which provide 5%. Pay, okay? So you're boring money at 0% and then letting it out at 5%.

And it's something called the yen carry trade. It's really dumbest things in the world. We won't go into it, but again, there's massive money coming into the US financial markets and they need to create more investment vehicles for investors, okay? And they're going to call the CDOs, which means collateral debt obligations, okay?

But basically it just means, subprime. All right? The idea is that mortgages are a good investment because people have to pay a monthly mortgage, right? Therefore, you're guaranteed certain money at the end of the month.

The problem, of course, is subprime could lead to default. But at this time in history, no one was concerned about default because of the idea of too big to fail, which means that, look, the system is structured so that everyone is involved.

And if these homeowners default, the best default, then the entire economy collapses. Okay? So the idea is too big to fail, the system will keep on going, because if a certain percentage of homeowners were to default, the entire housing market would collapse. Okay, doesn't make sense, guys.

All right? So this is one big point. scheme but we know for fact that in 2008 this system collapsed and for the longest time what we believed is it's because the defaults were too many they were too much and so this system had to collapse but if you look at what happened what you will discover is that's not true okay the banks could just choose to roll over the default, okay? Meaning, okay, you owe me $1,000, right?

For the mortgage, but you can't pay me. What do I do? What do I say, pay me back next month, right? You're like, next one, you can't pay me back? Don't worry, pay me back the month after, okay? I can have the system keep on going. Because remember, this system, this money, is just based on an illusion.

Doesn't make sense, guys. All right. But it collapsed, okay? So that's something that we're going to look at today. All right, so as you can see from this map, this chart, at first what was happening was that the government was the one issuing out loans. Okay, so the government is basically light blue. But then because this industry was so profitable, private banks started to come in and issue their own loans.

And these became very risky loans. Okay? And this led of course to 2008 when the entire thing collapsed. Okay, all right. So the big question is why did the financial market collapse? So this is the CDO issuance, okay? As you can see, it's generating a lot of money for these private banks and then suddenly in 2008 there's this massive default. It collapses. The question is why this happen and again you're taught in an in class this is just a lot of gravity okay if you go too high you're gonna fall but what people don't tell you is this there are actually people who made a lot of money because of the collapse John Paulson how much money did he make in this

collapse 20 billion dollars guys that's a lot of money 20 billion dollars how did he make money he made his money by betting that the house market would collapse you understand what happened okay so so think about this okay I lend a million dollars to Amber okay and everyone you have to pay back ten thousand dollars but then suddenly you kept me back right but if I tell you ember you can't pay me back you have to give me your home okay then I lose my investment in you you, right? So I don't do that. I keep on letting you live in the house pretend that you can pay me back even though you can't pay me back. But then Vincent says to me, hey, Mr.

Jeff, I bet you that Amber will not default on her loan because she hasn't defaulted in the past 10 years. I say to Vincent, how much do you want to bet me? I mean, he's like, um, half million dollars. Okay, he's so confident that you will not default, right? So I say, sure, bits and I'll take this bet with you right now what I do now I make you default because now I can make a million dollars from Vincent and that's how it worked guys you think it's a very complicated thing it's not it's all a giant scam because only a few people control the entire system this is how you make 20 billion dollars in this game okay you there's stupid people buying mortgages from you

right but you have any more stupid people who bet that you will not default on these mortgages and you so you take your money from the stupidest people and that's why the system collapsed because you're gonna make more money from collapsing the system than just letting it go on okay this is this is john paulson this is jimmy diamond and he also profited from the bank collapse why because when these banks collapse you can start to consolidate the banking industry okay so jimmy morgan start to buy these other banks that were losing money, and then J.B. Morgan now is the largest bank in America. All right?

Also, guys, look at this. Before 2008, most homes were actually owned by individuals, okay? This is 2008. So the gray are just individuals. They might have one home, they might have 10 homes, okay? But there's basically individuals. The blue are those who own more than a thousand houses. And then the dark blue are those big banks that own like 100,000 of homes, okay?

So before 2008, you can see like most people were in the gray, okay? These are these individuals. But then after collapse, you see the blue and the dark blue go away. way up. Why? Because these homeowners lost their homes. And so these banks and these companies could come in and buy them on the cheap. Doesn't make sense. So it's not, so the great financial crisis of 2008 destroyed millions of lives, but it made it profitable for a few powerful individuals and institutions. Okay. Right. A major consequence. So, so then you're like, okay, No, no, no, no, Mr. Jiang, you don't get it.

It's gravity. Eventually, a bubble has to collapse. Well, okay, well, today we have two bubbles. We have something called the private equity bubble, private credit bubble, where private banks lend money to private companies. And people say it's $200, and it hasn't collapsed yet. Why? Because the private banks allow the private companies who are losing money,

to keep on going, you understand? The private banks don't come and say, hey, you guys are losing money, you should declare bankruptcy, and I'll take whatever you have. Why? Because they lose a lot of money that way. Okay, do you understand this idea? These boggles can keep on going forever.

They don't have to collapse. Another big bubble today is something called the AI bubble, right? These companies, Invidia, OpenAI, when their AI products don't actually make any money. Like Chatchipa does not make any money. In fact, it loses money every time you use it, okay? Because it's more expensive to run chat TPT than it generates in revenue.

But, and it's a huge bubble. But why doesn't it collapse? Because these are just a few companies letting money to each other. Okay? That's all it is. It's a giant Ponzi scheme. It's an inside game. So bubbles don't have to collapse.

They collapse when it's profitable for a few individuals to make it collapse. Alright? Okay. Another idea I want to understand is that after 2008 great financial crisis, this created problems in the global economy. And so what happened was transnational capital decided to save the global economy by allowing China to rise. Okay?

So this is not known, but one major consequence all of the, the great financial crisis is that China's capital encouraged China to print money. Okay? All right, so I'm going to show you how. But first, let's talk about the main mechanism to allow this happen. It's called the Bank of International Settlements, okay?

And this is, the Bank of International Settlements is in Basel, Switzerland, and it's considered the central bank of central banks. So every nation has a central bank that determines interest rate, but the BIS is the central bank of central banks, which coordinates all central banks.

All right? And it is the most powerful bank in the world. All right. And you think that, okay, this must be public. No, it's not public. It's just run in the best, it's managed for the best interest of powerful people.

in the world, okay? All right, so this is a little book, Basil, Power of Basel, okay? Can you read? For despite Hitler's bluster and shatch planning, Nazi Germany had not achieved autarky. It needed to buy vast amounts of raw materials to manufacture armaments and to feed, heat, and clothe its population. Swedish steel, Romanian oil, Portuguese, tungsten, even South American beef, all had to be purchased and paid for in hard currency. Nazi Germany needed a financial channel to the neutral countries it ran through Basel, which is the main reason why Nazi Germany did not invade Switzerland or Sweden. These neutral countries were far more used to the Third Reich.

Reich, yes, Third Reich, as monetary hubs on the transnational financial network than as extra swaths of German control territory. So what this means is this. In this speech is Hitler promised independence from the global financial order controlled by the British, okay? But you can't really do that because you just have to buy things from other places. But then you're like, I need a bank to levy money to buy things, but it also help me facilitate transactions.

Okay, and this is the idea of transnational capital. And transnational capital, they don't really care if you're evil. They don't care. All they care about is how can I make money? So this bank, Bank of National Settlements and Transnational Capital was helping to fund the Nazi war machine because it was profitable to do so. Okay?

And you think, okay, after Hitler laws, the Americans would surely know, okay, Banglian National Settlements is evil because they help the Nazis. Therefore, we should destroy the Bengali National Settlements, okay? But that's not what happened. After World War II, the Bengali National Settlements became even more powerful, okay? All right. Can you read, Amber? Marshall Aid came at a prize.

Remodeling European societies on the American model of consumerism and consumption. Hoffman's propaganda arm produced pamphlets, posters, leaflets, radio programs, and even traveling puppet shows that extolled the American lifestyle. The American Dream, a house in the suburbs, a car, and numerous household appliances was projected as a near-guaranteed benefit of American-style freedom. The key to this was increased productivity on American-style production lines in a transnational free market. For that to happen and for the money to flow freely new mechanisms of international payment had to be constructed with the BIS at the center. Okay, so the world is run for money, okay? The world exists, these organizing,

organized exists in order to facilitate the easy fluid movement of money around the world and make money god, okay? So after 2008, the bank and natural settlements had a problem in that the global economy was slowing down. Europe had lost a lot of money, America had lost a lot of money. So their solution was, let's shift the center of gravity from America and Europe to China. And you're like, okay, how do you do that then? You do that with something called the exchange rate. Okay, exchange rate is very simple. Rooming B to USD. Okay. So remember how the interest rate in a national economy, it's a signaling mechanism as to whether or not to increase or decrease liquidity.

Well the exchange rate in the international marketplace is a signaling mechanism to tell other nations whether or not to trade with another nation. Okay, does that make sense to you guys? All right, so let's look at what happened. So for the longest time, the Chinese currency was trading above eight to the US dollar. because remember the US dollar is the main mechanism is the main mechanism all global trade. And then, hey, starting around this time, 2008 guys, it's hard to increase in value. Okay? And so now the world knows, oh, I should trade with China. And China is like, well, okay, my exchange rate is higher than before, therefore I should buy more things from the world.

Okay? But knowing that, but now that I have access to commodities from the world, then I should know I need to promote my economy to use these resources. So I should spend more money on infrastructure. I should build more high-speed railways. I should build airports. Okay? And that's what China did. You see how 2008, just as the American and European economies were suffering, the global economy was suffering,

the global economy are suffering, the Chinese economy, China started to have a higher exchange rate, okay? And it kept on going higher and higher. And then what would it try to do with it? China start to buy stuff from around the world with it. Okay? Again, this is a signaling mechanism where the bank national sentiment is safe to the world,

you can now sell to China. We will guarantee China. All right. And that's because the bank industry needs to try to buy more things from the world. And this happened in starting around 2008, right? This massive surge in imports. And because all the commodities were coming to China,

China to spend these commodities, so it started to build infrastructure, right? And how did it finance the building of this infrastructure? Bank loans, guys. Bank loans, all right? So this is China. Sorry. This is China, right? Look at this. Look at this. Look at this. This is China. 2008, basically China, US, Japan, Europe, their economies were about the same.

The bank systems were the same. But starting about 2008, wow. Look at this. This is all being orchestrated by the Bank of National Settlements, by a few people, working behind the scenes. Look at this. Look how crazy this is. All right? So what does this mean? It means that today, China has the largest banks in the world.

This is J.B. Morgan, the largest bank in America. This is Chinese. This is Chinese. This is Chinese. This is Japanese. Okay? The top four banks in the world are Chinese. Why?

Because in the bank system, debts are liabilities, sorry, debt liabilities are also assets, do you understand? All the one of the Chinese banks have are just liabilities. Okay? So this is how the system works. It's all just an illusion.

The thing about the Chinese system, that prevents it from imploding is the fact that all debt in China is localized instead of nationalized all right so even though these Chinese banks are heavily in debt it's there in debt in local areas not national areas okay and all this means is that the bank of China does not have that much debt relative to say the bank of Japan okay so debt in Japan is national nationalized debt in China is localized. Okay, so another major consequence of China,

the growth of the Chinese banking system is that China start to export its goods around the world more, okay? So as you can see, in the year 2000, America really dominate the world in manufacture export, okay? But by the year 2024, look, it's basically the entire world is buying Chinese exports. All right? And so this is a deliberate strategy of China's national capital to move the center of economic gravity from the United States to China. And the problem with China, the reason why China has not become the hegemon, is that

China's not interested in being a hege of mine. In other words, military power. Also, as China is expanding its manufacture capacity to the world, who's upset now? The United States, right? And so what the United States does is it imposes tariffs. Okay? Doesn't make sense.

So, in other words, okay, even though, in theory, The theory is that the goal of the bankers is to maintain the game, okay? That's all they care about. So they want to switch from America to China, but it didn't really work because China doesn't really want to take the responsibility of being the global reserve currency as well as having military bases overseas. All right? So China doesn't want to do this, and America won't let China do this.

So your only option now is Israel. Okay? And that's why I believe that this war in Iran, what it will do is shift the center of gravity from America to Israel. Because Israel wants to be the center of the world, not China. Okay? That doesn't make sense, guys. All right? The other thing you have to understand is that for this is to happen though, transnational capital needs to first collapse the American economy.

And there are different ways they can do that, right? that, right? They can collapse a private credit bubble, then they can collapse the AI bubble, then collapse both at the same time. And why would they want to do that? Because as a banker, as a transnational capital, you make your money through activity, right? When people go and do stuff, whether it's entrepreneurship or starting wars, but they have to go do stuff. And right now America has a lot of problems, okay? So let's look at America's problems. First is aging. where the elite are now older and older, therefore they are less active,

they're less energetic, they're less entrepreneur, okay? Then you have something called quantum easing, which is like too much money in the system. You have too much money in the system, then people do stupid things like gamble, okay? All right? And the last problem of America is, you can't win wars, okay?

Like this Iran situation is showing that America, the American military is not a strong issue, think it is. So if you're a transnational capital, you see these three things, okay? The population is getting too old. There's so much money around, so people do stupid things like gambling, and America, the American military is not that great, then you're going to shift your capital from America overseas, okay? But before you do that, what you want to do is engineer a financial crisis so that you can make as much money as possible, just like the 2008 financial crisis, okay? So we don't know when it will happen, but we're going to be sure that it will happen. It'll be

suddenly okay okay it doesn't make sense guys now you're like wait a minute here what what would Trump and Americans allow this to happen they know they must know this is coming and the answer is because it is in a long-term best interest of America for the economy to collapse and for transnational capital to go elsewhere and this will discuss next class okay what the long-term American strategy is. Transnational capital is leaving America. And the Americans are like, oh my God, Bank of England,

city of London? These Parisites are leading? Thank you. Get out of here, man. Okay? And what would happen is once they leave, America will probably have a much brighter future and something we'll discuss next class.

But any questions? Yep. So seems like that America is in a disadvantage situation but the but they know what they're doing and they're just sending parasite all outside of their country and having a more long-term benefit is that right okay so this only will discuss next class okay but this is not a deliberate strategy all right because if you think about it agit collapse will destroy a lot of wealth in America it will probably

create conditions for civil war in America will create a lot of pain But there's certain people, for example, Donald Trump, who believe that this pain is necessary in order for America to become great again, okay? He said, his motto is what, make America great again? And how do you do that? You get rid of these parasites.

But to get rid of parasites, guys, it's a painful, painful process. It's like a cancer, right? Have you guys been through cancer treatment? It's painful. Chemotherapy, they dissurge it on you. You have to like eat this, you know, crappy food all the time.

It's a painful process. Okay? So Transnational Capital, it's a parasitic force. It's a cancer on the American host. They have to get rid of it, but it's going to be a very painful process. That's going to take a long time, years, possibly decades, okay? Yeah. Amber.

So if transnational capital is leaving America, then how would you think this shift would impact the global economy? Or would it at all? Yeah. Okay. All right. Yeah, all right, so there's something we'll discuss later on, okay? But let me just show you how this shift happens. All right.

So right now, you're in America. And the best place for you to shift is Israel. Okay? Why? Because you're interested in activity. You're interested in putting your money in a place where it's going to grow, right? And why is Israel growing? Well, because of the greater initial project.

Right? They want to conquer the Middle East, but then it has to rebuild, right? After the war, rebuilding. And then what it's gonna do is become the hub of global trade, right? Because Israel controls Africa. And this is something we'll discuss next class, okay?

So this is why you want to invest in Israel for these three reasons. Why? Because they're gonna keep on fighting wars to achieve the greater industrial project. Wars are profitable. Worse of the world in the world, okay? Second is that they rebuild after all this destruction.

So they need capital. The third is they will control global trade because of the location, okay? So this is why Israel is a smart investment for transnational capital. I'm not talking to like us, okay, with like $1,000. I'm not talking like $1,000,

we'll probably go into Israel. All right. So to leave America, what do you want is the stock market collapse, okay? and that kind of collapse. Why? Because economic collapse not only allows you to leave with as much money as possible,

but also allows you to buy up distress assets. What I mean distress assets, I mean resources, which include water, oil, okay? So you want to create as much damage as possible because then it's easier for you to buy up these resources. And, okay, does that make sense? All right? So these guys plan decades ahead.

But transnational capital, what they do is they're trying to create as much chaos as possible because in chaos, there's profit. Like if it's sitting around doing nothing, you can't make any money, okay? But if you are fighting each other, if there's blood on the streets, you can make a lot of money.

All right? Does that make sense? Yeah. Okay. Any more questions, guys? Okay, so we'll talk about what happens after financial shift next class okay