Shaun Newman Podcast - #816 - Tom Luongo

Episode Date: March 19, 2025

Tom Luongo is a former research chemist, amateur dairy goat farmer, libertarian, and economist whose work can be found on Zero Hedge and Newsmax Media. He hosts the Gold Goats ‘n Guns Podcast. We discuss Canadian politics, Carney’s bond scheme, and financial power dynamics between London and the USA. Cornerstone Forum ‘25https://www.showpass.com/cornerstone25/Get your voice heard: Text Shaun 587-217-8500Substack:https://open.substack.com/pub/shaunnewmanpodcastSilver Gold Bull Links:Website: https://silvergoldbull.ca/Email: [e-mail] Grahame: [phone]Bow Valley Credit UnionWebsite: www.BowValleycu.comEmail: [e-mail] Use the code “SNP” on all ordersProphet River Links:Website: store.prophetriver.com/Email: [e-mail]

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I'm talking about Tom Luongo, so buckle up. Here we go. Welcome to the Sean Newman podcast today. I'm joined by Mr. Tom Luongo, sir. Thanks for hopping on. Thank you, Sean. How are you doing? What's going on?

Well, as people can tell. I'm doing a traveling show today. You're not traveling. I am. I'm sitting at SGB headquarters. I got the bowl over my head here today. I'm in Calgary doing, I don't know, a bunch of things before the forum gets here, May 10th, which you're a part of. And so they kindly offered up their weighing room.

So I got a bunch of things sitting around me that are a little not studio-esque, if you would. But I'm having fun. How's Tom this morning? I breathe in and out. I repeat when I need to and, you know, don't complain. You know, another new, another great day in Trump's New America. What are you going to do? Well, it's funny on this side of things.

I mean, I just had you and Alex on. And then it was, I think, like a day later with your gold, your community, your, your Patreon community. I started getting texts like left right and center about you need to have Tom back on. We need to talk about this bond scheme. And I'm like, I'm like, this is going to be way over my, my skis, but that's all right. This is what I do. And if people want Tom back on talking about some different things, Canada land, because it seems to be one of the things I've been noticing, I don't know, before we get into it, from Americans's point of view, maybe I'm wrong on this. From a Canadian's point of view, it seems like Canada has become a topic of de jure lately among Americans, which has been really fascinating to watch, sitting here and like knowing the ins and outs of Canadian politics.

And certainly having, I think, maybe a little more inside knowledge on some of the stuff that's going on. And then to hear Americans commenting on it over and over again. Because like some of the biggest names have been, have been, you know, talking Canada land. It's been really fascinating. But maybe I'm wrong. Maybe Americans don't give two craps about what's going on up here. We actually do. Well, I mean, I don't know.

From my perspective, I do. And the reason for me to say that is because it's from my perspective, you know, which is constantly watching for evidence of external interference is a nice way of putting it. Fuckery is how my friend Jim Kuntler would put it from, you know, Europeans, Zavos, the World Economic Forum, the British Crown, watching them try to wedge and use Canada as a wedge agent. and turn it into a hostile neighbor in a three-month period has been fascinating because it's really what's happening here. The installation of Mark Carney as, and I refuse to say election, he was definitely installed in the same way that Biden was installed, the same way that whoever is going to think of Romania will be installed by these people has been nothing short of breathtaking to watch. And then the way he's acted in the week since he was installed has been

even more illuminating because it's, you know, everything we kind of thought was going to happen has begun happening. When Mark Carney says that Canada is more European than any other, you know, any other non-European country, that tells you all you need to know. They have decided they're not going to let Canada come, you know, be rested from their control. by the upstart help known as the United States. And I'm here to tell you folks, this is a, this is a big moment for can for Canadians. And we touched on it the last time we were on, Sean. And I'm going to probably come across as a little belligerent because I feel very strongly about this, but I know y'all are really angry about Trump calling you the 51st state,

But this was done strategically. It was done crudely on his part. And one's going to argue that Donald Trump isn't crude. But it was actually a very generous offer, which is you can be a part of our club going forward. You have never really been given that option in past. And it has always been like kind of in Europe's corner, kind of an America's corner and their own little thing up there. But the world is changing. And you're being forced to make a choice between Europe and the United States.

And Europe is schmoozing you and treating you nicely, even though they hate you because they do because they hate everybody who's not them. Or you can deal with the reality of your neighbor and closest trading partner. And expect Trump to back off on the rhetoric at some point if there's if it's not going to be, if there's even a chance. of any kind of reconciliation here. But Mark Carney is doing everything imaginable at this point to front strength that he does not have in order to gin up Canadian nationalism. I find it very ironic that Mr. Art Globalist himself,

Mr. Organizer and architect of the carbon tax and that everything is now using nationalism in order to promote globalism. That's frankly hilarious. And if Canadians fall for it, you have nobody except yourself to blame. No offense here. We fell for it here in the United States for a long time.

We have the same type of people here in the U.S. who are now keying Tesla's. When the same people six months ago, virtue signaled about how their electric car was, you know, the future. And now they're keying them and blowing them up and, you know, calling him, you know, Elon Hitler. or Adolf Musk. I, like, it's in the, the, the level of insanity that has been uncovered here is nothing

short of breathtaking. And it's something that Chris Sims and I talk about on the podcast, I'm going to publish after I get done with this talk with you, about why that is and, you know, where that comes from. But we also spend a lot of time in that talk discussing our shared roots as, you know, middle class people, you know, lower middle class people who work their asses off, working class people to, you know, get to a position of relative comfort. And that's being destroyed through inflation, regulation, taxes, climate change, the carbon tax, blah, everything, the global homo stuff,

all of it. And here we are now being divided by these same people. Because what? Americans are prude? Really? That's your, this is your problem? Because Donald Trump is a crass New York developer. Everybody has to really take a serious look at themselves in the mirror and ask themselves, what is it you really want? Because once you, once you do that, on both sides, like the Americans that are having this problem need to deal with this as well. But, you know, there's an implicit offer in Trump's, you know, dismissiveness, which is, look, you can be a part of the club. You can be part of Fortress North America. You can be an integral part of the Renaissance of North America while Europe, you know, dives headfirst into the dumpster of history.

Or you can go with them. Your choice. But everybody's so gaslit in the believing that the United States is on the verge of, like, collapse. It's not even funny. And that's the part of the problem now. You've got to get past the gaslighting and realize that Europe has half the GDP. Europe has half the GDP for twice the number of people is the United States. They have no competitiveness.

They have no collateral. They only want you for your resources. They only want you for your gold, for your silver, for your oil, for your labor, for your wheat. That's all they want you for. And to be to stick to stick in the craw of the United States. that's what they are that's what that's why they love you you're the help and they see and you're even more of the help than we are and they absolutely see us is the help so that's the that's the overview I was just going to chime in on when it comes to the political landscape of where we sit as

Canadians I don't know you know like when I when I look at the viewership of of the podcast right like it's been growing in the United States which you know part of a surprise me other parts maybe not so much. Plus, there's been a lot of people leave Canada as well. So, you know,

whenever we get talking about Canadian politics, I always want to remind the audience, like one of the unique things that I've learned here in my short time of paying attention to Canadian politics is we don't operate

like the United States. I think that's pretty obvious. But with Carney in particular, or Daniel Smith, I like pointing them out because in my time of podcasting, right, and starting to focus,

on politics, this unique thing has happened where you have, it started with Daniel Smith back in 2022. She got elected as the premier of a province without being elected, right? The same thing that just happened to Carney. So we actually haven't come to a general election yet where Carney runs against Pierre Poliev. So like he is the prime minister and you go, well, how long is he the prime minister for? And the thing that the Canadian system is so weird, Tom. I go, I can't tell you. I literally can't tell you. The political nerds would say, well, probably April, May, there's going to be an election. But he could hold on until October. You go, okay, so it has to be October 25th. Well, there is this way that he could use emergency powers and it could go to September,

but he'd never do that. I'm like, oh my God, we can't even say that October there will be an election. And so you get this little dance of like Kearney was installed. And the reason why I will agree with you is if you watch how the liberal voting went, right? So the Liberal Party of Canada is the government of Canada, right, the prime minister. And so Trudeau resigns, which triggers this leadership race. And in the leadership race, they get all these people and they just slowly knock them off the ballot so that there's three left, four left, I think, at the end. And then the night before the election results are compiled, they knock off. 250,000 of the 400,000 election results.

And wouldn't you know it, 100 plus thousand of those are Mark Kearney? And you're like, if that isn't installing somebody, I don't know what is. Now the question for Canadians and probably people down in the south is like, so is he going to be the next prime minister? And I would just sit and having a conversation before I walked in here. The polls show there's been a nice little uptick. Do we believe the polls? I look at Kamala. I look at the Trump election, right?

And you wonder if it's going to go that way, or you wonder if Carney truly is going to get the foot pressed on the table. Every body part pushed on the scale so that they can install him as the leader of Canada for the next four years. But we're in strange times here in Canada. I just want to add some context to that when it comes to the political landscape. Because, you know, folks, I wasn't this guy four years ago. Now I stare at it. And I go, as a Canadian, I have a hard time wrapping my brain around.

how our political system actually functions. No, you're, Sean, like, I can tell you that that's what they're going to do. As a matter of fact, right before you and I sat down, I was checking my Twitter feed and one of my long-time Canadian fans and, you know, friend I've met personally at Cornerstone. She's been there a couple of years. She just tweeted at me that this is where she's like, there's a picture of like planes landing. This is where the next Canadian election is going to be decided because Mark Carney is now going to meet with Jagmeet Singh of the, you know, whatever.

NDP. NDP, which I don't remember what it stands for because I don't care. New Democratic Party. And it's supposed to be for all the workers out there, Tom. It's for all the workers. And that's what Jagmeet Singh is, is hanging on for a deal for the workers before we have an election. He's going to stand for the people. Yeah.

So, yeah. So, okay, that's, that's, that's the, that's the, that's the headline that they run at the CBC. And that's nice. I'm going to say, no, what they're doing now is they're trying to figure out how to make Canada safe for globalists and how they can do everything imaginable to turn Canada into the anti-United States. This is going right back to my, the analysis I've always made about how the British Empire has, as it retreated, it always left behind and, you know, it left India, it left anti-India by leaving Pakistan. Yeah, it left the Middle East and it left a Balkanized Syria that was that nobody, which was anti Iran, Turkey, Saudi, you know, everybody, Iran, Iraq, everybody was in like, and the same thing in, you know, pick your poison.

What we, we Americans and Canadians need to wrap our heads around is that that was Canada for the United States. when the United States went independent back in the 1770s. It was Canada that was being set up who were offered to become part. And they chose not to. And then who was, you know, who were the British allies in the War of 1812? Who helped sack Washington, D.C.? Canadians. Exactly.

So, Canada. I actually get to the point now where part of me, the war is Canada, right? the door certain aspects of Canada also doesn't mind, you know, insulting you, like by purposely mispronouncing, you know, Canada's Canada. I do it on purpose because I have to like remind everybody that we have the U.S. and the anti-U.S. And they've been trying to do the same thing with Mexico. Mexico is much harder to do because it's not a shared former Commonwealth state, right?

This is very important. And so there's this latent hostility. There's this latent. I don't know, adversarial nature to a U.S. Canadian relations. It's always been there and has always been dormant. And now our European forebears are pressing on that as hard as possible. And they're using the excuse of Donald Trump dressing down Justin Trudeau, the most hated Canadian prime minister of all time.

And all of a sudden, you all rally around the idea of Canada as a nation when, you know, is this imposter syndrome? Is this little, you know, is this Napoleon complex? What is this? Yeah, but these are, when you go about the Teslas, the people now, yeah, I just read an article. The NDP in Saskatchewan are saying it's just amazing to see the Canadian flag being flown with pride and everything. The Canada this and Canada, that. And these are the same people that only a few years ago when the convoy went said the Canadian flag was being used as a hate symbol.

Right. So like you're seeing it play out right in front of you. when it's when it's when when it's useful to them then then now it's all canada this but right when actually there was canada pride when there was actually like oh my god here's the can i remember when we were sending money north of the border to help the truckers protest against what was going on in parliament like we were there with you sending money under you know under threat of the Biden administration deep platforming us and debanking us too, by the way. Like, like, this is, we have more, much far more in common than we have against each other. This is a, this is an issue that needs to be

resolved. And the big question is, you know, look, we may be the bigger, older brother. We may be the more powerful, you know, southern neighbor, whatever you want to call it. It doesn't mean that we have to treat you like the help. But if you want to be treated like the help, we'll, we'll oblige you it's your choice yeah i know but this is this is where everybody has an opportunity here to declare independence from these literal pedophilic assholes over in europe yes why would you use those people over us like trump likes kFC and and still like it's someone is okay with canada building fours you just can't tear up our eggs how was it possible tom that in the united states people will still voting for the Democratic Party after what had gone on and then tack on that our power

structure is the east so there's there's an absolute break in this country because we all know out west the next leader of Canada is going to be decided by the east and so you sit there and watch and you go so why would they side with what Carney's talking about and all these different things and why are they against Trump it's because there's there's a different value set and it splits somewhere in the middle of the country. Now, to all the listeners out east, I'm not saying all of you, obviously, I have listeners out there. But I mean, you can just see how our country votes. We're like, I don't know, is it 50%? Is it 60%? We're socialist. I mean, we vote our current government right now is NDP holding up or the liberals being held up by the NDP. Both of those

are the Democrats. It's the left side. They're worse than that. They're there, they're literal. I understand. And this is where. So I understand the, the, the problem, Sean. I fully understand it. The funny part about it is. And I don't know how this is the interesting part about the difference in a parliamentary system and a majoritarian system, which is that, you know, how much of that is actual is reality? Like in a parliamentary system, you don't have to cheat very much because you have coalition

governments. You can have everybody like express themselves, you know, ultimately express themselves however they want in their nuanced way in order to get so that you can get three parties. that don't have more than 20% you know, support than former 60% coalition government. And the prime minister acts on behalf of who was voted on by 20% of the people, one in five people run the country as opposed to the majoritarian system where at the end of the day, you really do have to choose between are you for that guy or for that one? And I'm not saying either system is good.

But one does create a lot more clarity because at some point you have to truly decide what it is do you believe in. And I've been saying, and that means, by the way, that they don't have to cheat as hard in Canada. They only cheat a little bit at the margins. Forget what they did with Carney last week. That was egregious. I'm talking about like a general election in Canada. You don't have to do much to cheat this. All you have to do is shave a half percent there or a half percent there in order to get what you want. In America, they have to do industrial cheating. I've been saying for a long time, and the more we clean up the voter rolls, the more clean up the election results. We're going to find out that America is 6535 red. Not 5248.

Okay, 6535. Because have because at least 13 to 15% of the people who are either independence or identify or wind up voting Democrat are really kind of classical liberals that can't bring themselves to vote Republican because they're because of, of internal bias. But philosophically, these people are are, are closer to me than they are to frigging Kamala Harris. So how much industrial strength cheating do they do have they always done? Why do we find out that there are hundreds of thousands of people on the voter rolls in Pennsylvania and Michigan and California and wherever? Why do they do this?

Like, you know why. So in a majoritarian system and one that's federalist in the way ours is designed, there has to be industrial strength cheating in order to gaslight the people in the believing that the divide isn't as real as real as it is because of Democrats or people who are in that 35% cohort really understood that they're actually 25% of the population and not 45, 48 or 52, they believe they're 52% of the population or 55% of the population. They really do, by the way. When you listen to them talk, I live just north of like shitlib central.

Like when you listen to these people talk, it's, and I'm sure that you get the same thing you talk to, quote, unquote, you know, a member of the Laurentian elites, right, that you get the same, like, well, the same vaguely condescending attitude. Like, well, we know better than those mouth breathing rednecks, right? I got news for you. Those mouth breathing rednecks in the United States make up most of the country. And we're going to find that out as we go along over the course in 26, 2028, 2030, 2032. As the United States goes along, we are going to shift much farther to the, quote, unquote right, but really we're just shifting back to the center. And it's and they know now in Europe that they have to create as much tension and as much chaos as possible in order to scare

people into not siding with Trump. And they're running divide and rule operations on every subc cohort within quote unquote MAGA. This is something I'm going to talk Clinton Russell about this afternoon when I'm on his show on Liberty Lockpot because the libertarians don't understand it. They just don't get it that they're being used as useful idiots. And I've been screaming about this for over a year. And, but, you know, what are you going to do? Like, this is, these are people that are ruled by their head, not by, you know, their observations. They're ruled by the model of the world that they have in their head rather than the world that

the actual world that they live in. And they can't separate those two things because their model is what sustains them because it's their hobby, it's their identity, it's whatever it is, as opposed to going, you know, Look, I have an ethos, you know, but there's a infinite gulf between that ethos and where we are in the world today. You know what I mean? And you do your best to deal with the pragmatism at the moment. It wasn't one of the things I really enjoyed about visiting Alberta twice was that everybody I met was eminently pragmatic. Right.

There's a pragmatism that comes from, you know, being, you know, you're working with your hands and, you know, coming from that kind of kind of background. Like that isn't there. It isn't in evidence when you have people who, you know, push papers on a desk all day or, you know, pontificated into an extra hall, you know. I worked with my hands until I started doing this shit for all of it. I know what that looks like, you know. And, you know, they're, they're.

This is why my perspective on this, I think, is at least somewhat reasonable. Seriously, when I say this, the hostility that we are seeing out of the United States right now is from, especially from the Magatard right, for whatever lack of a better term, is literally like Canadians, what the fuck are you doing? You have the best opportunity for true independence you have ever had. And it's time to do what we did. It's to declare independence and say no to the dark Lord. Say no to Klaus Schwab. Say no to the rest of them and say no to to, you know, and really get angry about the suicide pods and, you know,

all this stuff and eating the bugs and all this crap. I'm like, are you kidding? What did I hear the other day? Was it you that brought it up to me about what's the, the fifth leading cause of death in Canada? 4.7% of deaths in Canada are made. And that number is probably going up, which is medical assistance and dying,

which is eugenics, which is so it was yeah. Yeah, exactly. And if you think that it isn't primarily white Canadians that are probably that, I'll bet you that 4.7% I'll bet you 60% of that is white Canadians. I don't have that off the top of my head, but. I'm just, I'm just, I'm just, I'm just making a guess. I'm like, put it on polymarket.

Let's bet on it. Well, one of the things, one of the things, well, you know, when you're talking about Canadians, it's interesting. to me because one of the things I've been doing on the side Tom you know and you and Alex are right smack in the middle of it is you know if you would ask me three months ago about you know like what you're talking about right now Canada the 51st state Alberta the 51st state these conversations I was very much Canadian I'm almost insulted that that would be the the thought process right I think I think Canada has a lot

to be proud of but and I got a butt behind there because the longer I stare at it I look at the system we have and I'm like, but look at what our leaders are doing. I'm looking at where they're leading us. Just watch what they're doing. It's like, right. Okay, I don't agree with like 90 some percent of what's going on. So then you go, okay, well, let's vote them out. And then you're seeing that carne gets slotted in. You see how everything you just talked about with our parliamentary system. And you're like, the only way out of this is by probably breaking it. And the only way to break it is to leave. And then sure, you can do ever, you can, you can, you can go through a lot of different steps.

if you leave, but you have to leave. And I think a lot of Canadians, specifically Western Canadians, are probably on the same trajectory I was. There's a ton ahead of me that have been wanting me to talk about this for a long time. But like, you have to come to the, the, the, the, the, this core argument of like, I'm Canadian though, right? And then it's like, well, Canada's more. Is it more than I guess just a great hockey team?

Because I mean, we rally behind our hockey team better than we rally behind anything else. And when you start looking at our politics, it's like our politics is broken. Like I mean, our country right now is broken. And we're seeing it play out right in front of us if you're willing to pay attention and, like, watch it play out. This is insane. This is as bad as having Biden as the president of the United States. And I might, you know, it happening to my own country, to me, I feel like it's even worse. But that's because it's literally happening right in front of me.

So when you talk about, you know, Canada, you know, have a chance. It's like, well, honestly, Tom, I sit and I go, I think Albertans have a chance. And certainly, are there other promises? Okay. Well, then create your own rallying cry and start it. I've been bringing on different Albertans who are a part of it, though, and it is, it is complex, right? It's not as simple as just, hey, we're out, you know, everybody's like, up, let's just leave tomorrow. It's like, well, it ain't that easy, folks. Like, there is a lot going on there. And what spurred it has definitely been Trump's 51st state comment about Canada. And that has really had a butterfly effect, if you would, of conversations now going on everywhere.

Everywhere I go, I have the same conversation. I've been in Calgary for like 26 hours. And everywhere I go, this conversation comes up. But the problem is, is it's more complicated than just leaving. He can't just back your bags and leave. Of course. You know, it's funny. And one of the things I brought up to Chris,

And when I talk to her about it and I'll bring it up to you is, you know, America is not one big culture. Like this is like, it's not America. Like, it's not. Like go to the South. Okay. I'm still 38 years in the South. Still, Southerners, when they meet me for the first time, they're like, you know what I mean? Because I'm a New Yorker.

I can't get it out of me, right? You know, I can say, y'all, I can even. be like, no, can't do it. Speak too fast, do this. Do that? Just the whole demeanor, this is who I am, right? Like, New York doesn't have much in common with the Deep South. Deep South doesn't have much in common with Abilatia.

Appalachia doesn't have much in common with the high country of, you know, Idaho, and Montana, and then there's California. They have their own accent in California. They have their own way of speaking. California is different. Texas is different. Missouri is. different. It used to be, you know, your state, you were like, this was a big deal. And it still is.

And so what I'm getting at is that for Canadians, for Albertans or, you know, those from Saskatchewan, I don't know what you call, you know, people from Saskatchewan is whether or not you can diminutize that word or not. Saskatote, I can't even, I can't even do it. I'm as verbal as a person can get it. I don't think I can come up with Saskatch. No, no, I can't do it. So, like, Like, Oliver ones. So, like, they're all different cultures. So you want to be a part of the multiple subcultures that we have in the United States. You just be like, we just add another one on. And you're really, you know, in many ways, like I've been to Canada, been to Alberta. Like, it's not that much different from, you know, western, you know, northwestern United States.

It's not more, it's not that much different. Like, it's, it's real. So do we have more in common than we have against? 100%. Right. And so why not. not like think of it in those terms. Like you could become part of this thing, which will welcome you in. But there are subcultures within every country, right? I mean, talk to a Frenchman and I'm sure you'll hear a dissertation about how people, you know, Nice versus Paris versus this are all different. Like I know the Italians are that way. Like, holy shit, drive, you know, like there's like 20 different subcultures in Italy. Hell, modern Italy is only 175 years old. It was a bunch of city states up until the mid the mid 19th century.

So like the whole idea that, you know, we see these things as in these, you know, these, as walking for us, but these Westphalian nation states and that these are monolithic cultures, it's insanity. It's truly insane. And you have your provinces and you have your state identities and you have your local identities. And the question is, what you should be asking yourself as people is, okay, who do I want to be ruled by to well, best allow me to be the people that I will, the person I want to be. And that's the choice that's in front of you. And you can be ruled by Mark Carney or you can be ruled by Donald Trump and the people that Donald Trump is setting up for the next generation or more and be a part of that process or not. That's what Trump,

that's what I mean. Trump ripped the band-aid off of the false, the falseness, the false politeness of U.S. Canadian relations. And he's ripping the band-aid off of false U.S. French relations and U.S. British relations and U.S. German relations. He's saying, look, this is all bullshit. You know, we don't have relationship. The United States doesn't have relationships. In both directions, I'm not saying that Americans are, that the U.S. has treated their neighbors well or the other side well. Would they treat them with respect or we get treated with respect? But I know who's been paying the fucking bills. And that's the big one. Because the reality is here that we're dealing with a whole bunch of people who are now,

I hate to use the phrase, I'm not trying to alienate anybody but hurt over being told, oh, by the way, not only are you sleeping on the couch that I bought, but you're doing so in a house that I'm paying the mortgage on. But I don't own it. I think it's one of the things Albertans understand. I know Albertans understand it. Right. In this country or in this province, I think,

Burtons understand that immensely. Because, I mean, that's what are we? We're a province of doers. We have all the natural resources on and on and on. We make things. We send them off. And then we take our money and we send it out to Ottawa, right? I mean, what was the number that got set on here a few weeks ago, folks?

It's like $600 billion over the course of, you know, X amount of years, right? But it's a lot. We pay a lot of money to the rest of Canada. And once again, the next question. The thing is, well, shouldn't we help the other parts of Canada? Sure. But at the same token, you know, when I watch what Doge is doing and some of the places we're spending money, Canadians can applaud that. But just for a second, wipe that away and look at where we send our money. Look at what the Canadian government is doing with millions upon millions of dollars. And we should be cutting all that too. We should be getting out. So when you say you can choose Carney or Trump, I actually look at it from maybe a step higher, Tom. I look at it like you can align yourself with the United States. or with Europe. And Europe right now wants war with Russia and wants war. And I, maybe, you know, like, don't get me wrong. I think I just saw that the United States is bombing. Forgive me, not Iran, but over there in Yemen in Yemen. I'm not under any perceived notion that there will be no war.

I just look at it like, if I'm going to sit here and watch everything play out between Russia, Ukraine for how long we've been doing this now, me and you specifically, I go like, I don't, I want to align with somebody who wants peace there. Like, can we just start with peace? And what Carney's doing is aligning us with people that want war with Russia. Yeah, want war with the United States. I mean, like when you get Christia Freeland saying, we need to align ourselves with nuclear powers. France and England should be a part of that. That's just scared the shit out of any Canadian that's watching this play out. That's a person that's in our current government right now. A cabinet minister.

I get news for you. Really look at that Canadian flag. You're waving around with pride. And ask yourself, you know, who's going to protect that flag better? Chris Rhee Phreeland? Because it's not like Trump's going to nuke Ottawa. No, if the United States were to invade Canada, it would take about half a dozen tanks to, you know, I think we talked about this last week, Half a dozen tanks pop on the main highway between Ontario and Alberta and the war's over.

One tank. One tank on the one major highway, boom. And another tank going out probably two more out towards the BC. Anyways, I could, I could, like that. I mean, it wouldn't be hard. Yeah. Again, you don't have air defenses without us. You don't have satellite.

You don't have any of that stuff. Like this is all, it's all nonsense. And it's all virtue signal. And what it's clearly going on here is that guys like Kearney and company are trying to run an operation such that they can inflame Canadian nationalism in order to strip mine what's left of your country. That's what they're going to do. They've been doing it to the United Kingdom since Kier-Starmer. Well, actually, since Rishi Senac was put in place. after Liz Trust tried to, you know, actually, I don't know, enforce Brexit and create a budget that would be good for, that would be long term good for the, for the UK.

And what happened? They were betrayed immediately by Black Rock and and Davos to, you know, blow up the UK guilt market and get her out and get her out of power. And then they put in their, you know, Davosian catamite frigging rhesi soon. And then after he was nearly finished and they destroyed the Tories, then they moved in the guy they've always wanted to put in power, which is Kier Starmor. And now if you think that Mark Carney isn't Kier Starmor, you know, for Canadians, just like three years ago or four years ago, they put Mario Draghi, the former head of the ECB into a caretaker government's position in Italy after they destroyed the previous coalition between.

M5S, five-star movement and Lega, to try and forestall and bind Italy down before Georgia Maloney's brothers of Italy could take over because they knew what was coming. So what they're doing now to Canada is the exact same thing they did to the UK. It's the same thing they did to the Netherlands. It's the same thing they tried to do to Italy. And they also, you know, gave us four years of Biden here in the U.S. same operation. And now we're in the middle of the latest sciop is now Trump is the one causing global chaos.

That's the new narrative. I was just before I popped in, check my Twitter feed. And Jim Bianco, one of the few people in current financial commentary at that I actually, you know, rarely disagree with. Jim is great. And he's like, he posts up a chart of, you know, periods of extreme volatility. And he's like, is this, do you really think that today is the second most volatile moment in, you know, American market history other than COVID? Is that what you think? Because that's the concentration of stories that we're seeing in the media right now. Okay. That it's the second highest in history. Now, why would they do that at a time when the stock market is off what, 10%

and we're supposed to believe that like the world's coming to an end? Or is somebody trying to gaslight you into believing that everything Trump is doing with those, with this, with everything he's doing is actually destabilizing, truly destabilizing the entire world when what he's actually trying to do is end all the illusions about all the destabilization that's been done by the U.S. taxpayer. to restabilize the world by not having hundreds of billions of dollars go out of the U.S. Treasury every year on destabilization efforts around the world. Like the worst part about these fucking people, it would be one thing if they just wanted

to be in charge of everything, it would be one thing. And they want to spend their own money on it. What's really, really should really get everybody angry. I don't give a fuck whether you're Canadian, American, British, German, French, Italian, Swahili, whatever, is that they do it with your money. and then activate their useful idiots and quizlings and the media to reinforce these ideas that this is the right and proper way to govern. It's offensive at the core of your being.

You should be so damn offended that you should, I mean, honestly, like for four years, all I wanted to do literally was go to the White House and beat everybody over the head with a stick. at the at the affront that joe biden and his merry band of freaking tranny children were running around destroying the world and canadiens to feel the same way about how mark carney's acted in the first week as prime minister it's it's offensive because you can see what they're going to do next it's obvious let's come to let's come to what your community like i was saying right off the hop A whole bunch of the text came in because you were talking about Carney's bond scheme. And I, I, I, I, I, listen, folks, when it comes to this, I'm like, I go back to my first

conversation. I had him, Tom, where I'm just, I'm like, I don't even know what you just said. But I got enough, I got enough literal freaking text about this. And I'm like, okay, like, we need to, obviously, I need to bring this back on. I had a ton of people, obviously, from your community that follow the podcast and vice versa. and this bond scheme. Walk me through this. It's going to be, okay, it's going to take me a couple of minutes to do this.

And you know, we got time. You know I'm good. You know I'm good at filibustering, Sean. I just want to prepare everybody. If you think I've been along with it to this point, to this point, here we go. Okay. So go back to when you and I first met and you first invited me on the show and then we had me and Alex on the show and we talked about all this stuff.

And I kept talking about this LIBOR. and SOFA. Now, LIBOR is the used to be the London Interbank offer rate. Sofer is a secured overnight financing rate. Understand that they map very simply to, one, prices, dollars in the offshore markets based on what city of London thinks they should be priced on. Sofer is a domestic rate that is market driven based on the demand for money inside the the United States, money markets, okay? Just understand that it, when you understand that. So conceptually, London was setting the price of dollars around the world. So really London was ultimately And when you use, sorry, when you use my, my, forgive me, Tom, but when you use dollars, you're talking

at all times American dollars. So the city of London is using American dollars and you're saying they're setting the price of American dollars. Right. They're setting the price of them through the inner through through through the through the, the, the daily quote for LIBOR, which is, you know, the interest rate you would pay to go borrow dollars to go get dollars in the, in the overnight markets. And then there's three month LIBOR and there's six month LIBOR and there's one year and two year. And you can do these things are all in the, the, but the price of dollars is set at the margin by what was happening in whatever the city of whatever the LIBOR, 18 LIBOR banks decided it would be. It was a decided upon rate. And it reflected the demand for money in London, U.S. dollars, okay, which are then all over the world, liquefying trade, uses collateral for loans and everything else and stuff that everybody's bank accounts and collectively off-star dollars are known as Euro dollars, right?

Because the offshore dollar market started in Europe during the Marshall Plan of the 1950s, in 1960s. And then the term Euro dollars is just now means a grab bag for dollars in Singapore, in Hong Kong, wherever. It doesn't matter. They're all U.S. dollars in Hong Kong bank accounts are known as Eurodollar, even though they should be called, you know, something else. Right. So understand that the pricing mechanism of dollars is what's important here. Who gets to set the price of dollars at the margin? Well, with the implementation of SOFER, The United States is now in control of the pricing of dollars because what happens in America stays in America and then gets translated overseas as opposed to what happens in London gets transmitted back to the United States. Okay.

And I could spend half an hour going through the mechanism of it, but that's literally what it boils down to. This was a second declaration of independence by the United States. When did sulfur, sorry, when did sulfur come in? Okay, so it starts as a pilot program in 2017. It goes, it becomes the debt indexing rate for all new U.S. debt on January 1st, 2022. Okay. Note that during that period was when Jerome Powell was being denied a second term by the Biden administration. Then note that once the Fed said, oh, by the way, Powell's FOMC chair until a confirmation here, until his confirmation hearing, that forced Biden's hand.

And then by late February, he was pushed through on a confirmation vote. One, won that vote with 80 votes. And then at the very next FOMC meeting, Powell started raising rates. The minute his second term began in March of, in late February 2022, at the March meeting three years ago, literally almost to the day, he started raising rates. And then he raised rates explosively to the upside. Now, understand that with that as a background. City of London is big mad about this. Don't want anybody fucking kid you.

Brussels is big mad about this because how they how they price their debt overseas is based on how we price our debt. Okay. Because everybody takes their cues from the American market because the U.S. treasury market is literally the most powerful market in the world. Correct? It is. We are the big gohoon. Okay. So I again, it's been three hours going over all of the, you know, the downstream effects of why they don't want dollars to run.

If I, if I'm catching it correct, Tom, like I don't, you know, like the sofa and the other one, forgive me, folks, like I'm not this giant financial guy. I chuckle about the question coming to me because I'm like, oh, I'll gladly have Tom on to explain it. One of the things people need to understand is the first, you know, 40 minutes of this conversation. and I think people who are listening to show know this. I'm very more comfortable talking politics, culture, and why Canadians aren't, you know, some Canadians are jumping at the opportunity to be 51st state and others are not and why there's pushback and everything in there.

That is a very interesting conversation. This one, I'm like, okay, what I hear is the United States created SOFER and by the sounds of it, Trump's first term. And then what SOFER allows them to do is control, the dollar and have control of it and take it away from Britain. And if you've been listening to this show, you go, well, Britain, you don't have to put enough exclamation points behind why Britain wouldn't like that and how upset they would be.

So I think I follow you to there. And Europe, which is upset about this. But they have, they have, they represent it for interest. Davos and City of London are not necessarily on the same page about everything. They are on the same page about making sure that the United States says the help. They are on the same page about turning Russia into an atomized, you know, de-rassinated wasteland that they can then suck all the resources out of. Right. Okay.

They're on the same page about that. Who gets the rule their system after they win? Oh, that's a different conversation. We'll leave that conversation to the side now. So Canada becomes a very interesting wedge point in this environment. when Trump comes back to power and starts to say, oh, by the way. So, okay, let's just stop for a second. Let's go back.

So the United States is now in control of the value of the cost of international dollars. With Powell having interest rates, keeping interest rates relatively high, with Trump now trying to staunch the flow of dollars coming out of the Treasury Department and out of the U.S. government overseas, there's a dearth of dollars out there. He's creating a dearth of dollars. He's creating a, he's trying to, I'm not going to lie to you. I know he's trying to create a fundamental shift in how the U.S. dollar is used around the world.

Okay. He wants to create a cheap domestic dollar and an expensive offshore dollar. Okay. And you do that with capital controls. You do that with tariffs. You do that with a variety of things. Now, along with Sofer, we've had other things, we've had other things occur to help build that wall.

The U.S. banking system doesn't interface with Europe the way it used to. They're not as intimately intertwined as they used to. They've cut a lot of connections over time. The U.S. physical gold market is changing. It's becoming domestic. The gold's not going to be. We don't mind the gold in the United States, put it onto the Comax and then ship it over to Switzerland for it to go.

to Hong Kong or to London to do all sorts of crazy things. No, the gold is going to stay here. As a matter of fact, as we've all been talking about for the last two months, the gold is coming from overseas to the United States. China and the United States are buying all the gold off the exchanges and off the London exchange, very important. Now, with that in mind, why is Canada important? Well, it's, it's this. Canada runs a $10 billion per month trade surplus. with the United States. In 2024, Canada, this is why Trump says, you know, you don't get to, like, take $200 billion from us every year. He means this explicitly. The trade deficit with the United States that Canada enjoys because of tariffs, because of the weaker Canadian dollar

and offshoring and NN is $124 billion in 2024. That's $10 billion a month, roughly. Now, that's cash flow. Those are actual U.S. dollars crossing the border. going into Canada and then they may or may not be recycled into turned it back into Canadian dollars to pay suppliers and everything else and you have to go to the Bank of Canada take those dollars go to the Bank of Canada, get Canadian dollars. The Bank of Canada turns those into U.S. Treasuries, buys U.S. Treasuries and that's how the dollars come back. But what's important here is that Mark Carney, the first thing he does is say we are going to issue a bunch of U.S. dollar denominated Canadian debt, meaning Canada is going to issue debt.

And the coupon payment on the bond is not paid in Canadian dollars like it normally would be. It's paid in American dollars. Now, other countries do this all the time. It's nothing, it's not that big. It isn't in many ways that big deal. It's big. Why?

Because the US dollar is better collateral. People want more U.S. Because our dollar sucks. Like I mean, I don't want to be, you know, one of the biggest things here, just pause for a second. One of the biggest things that Albertans are saying is if you gave us the US dollar today, I go just for that. So when you say, why do they issued an American dollars? I go, it's simple. Our dollar is shit right now.

I don't know how better to that's what. And that's and that is ultimately what Trump is saying when he says, Canada works better as a state because now we can protect you. Now we can bring you into our banking system. Now we can bring you into our legal system. Now we can bring you, Alberta, into the American system of law, legal protections, tax structures, this, that everything else. You get all the benefits of being American. And guess what Europe thinks of us? That we're the biggest offshore tax haven in the world, which is why they work so hard under Obama and Biden to harmonize our tax policy with them.

OECD rules, folks, organization of economic cooperation and development. Go read up on all that shit. Janet Yellen was absolutely all for tax harmonization via OECD to bring the United States law, to bring us into tax harmonization with the rest of the world. Hey, I have another idea to harmonize taxes. Why don't France drop their fucking tax rate?

Why do we have to raise ours? Fuck you. And this is the deal. that Trump is literally are offering you. You get to be, but you have to become a state or you have to become a territory. Because you can't be separate if you want to be, if you want all the legal protections

of the United States. It's a quip pro quo. You get all of that. And the, what you're currently getting, which is the implicit guarantee that we're going to defend you militarily. But if you're going to be hostile about it, you know, you're on your own.

And that's the, So let's go back to the. Let's go back to this. So we're issuing an American dollar. This is important because now you understand now, because. So what Carney is doing or what Carney is saying is that, look, you know what I'm going to do? I'm going to take that $10 billion a month in trade revenue. And I'm going to craft policy to make sure.

And I'm going to fight Trump tooth and nail to preserve that $10 billion. a month. Why? Because he's going to use that $10 billion a month to pay for the coupon payments on the U.S. dollar bonds that he's going to sell into the market below the Fed. Right. So if the Fed holds rates at 4.5% and Canada is at 2.75%, he can then sell, you know, Canadian, U.S. dollar debt at at that rate. And normally people are, well, why would I, why would he buy that? Why don't you just go to the Fed and buy a U.S. Treasury at four and a half as opposed to the Canadian bond at 2.75? But what if Now we get into like repo and other things and we get into carry trades. What he's actually trying to do is set up a U.S. dollar, U.S.

carry trade between Canada and the U.S. in order to, they can borrow a 275 and invest at four and a half. And then you get all this collateral pushed out into the euro dollar system that we have taken off the market. And they need that collateral overseas because there's shit tons of, of offshore dollar liabilities that need to be serviced. Those dollars need to go out, not be recycled back into the U.S. in the form of U.S. treasuries.

He's trying to set up an offshore shadow banking system in Canada, for lack of a better term. And I know I just went like really way past like all the way to the end there with a lot of jargon. But understand that the spread between the Canadian central banks rate and the Fed's rate is the key because that's never been that case before. It's always been that Canada's kept their rate very similar to the United States. Fed raises, the Canadians raise. Now the Canadians are always usual about 25 to 50 basis points, half a percent below the Americans, but that's because they want to run a trade surplus. Now it's 1.75 percent. It's never been this high. Okay? It's never

been this high. Why would you be doing it? And this started six months ago, right, nine months ago, when the threat of Trump coming back into power, the Canadian Central Bank started cutting rates faster, started cutting rates first, and then has been cutting more aggressively than Powell has. And that doesn't make any sense. So clearly they were always setting up for this moment. They knew what was coming.

If they didn't kill Trump and they weren't able to keep him coming into power and he was going to threaten tariffs, he was going to do this, he's going to do that, then we would have to get rid of Justin Trudeau, install Mark Carney because Mark Carney used to run the Bank of Canada, he used to run the Bank of England, knows this stuff. Justin Dudo is a fucking mouth-breathing moron. Right? He doesn't know a fucking bond spread from his own ass.

Mark Carney, on the other hand, does. And as what I've laid out, I don't even think is one-tenth of what they actually have planned in order to ensure that they do an end run around the United States declaring financial independence through SOFER and forcing what, look, if the United States, United States is trying to create a fortress balance sheet around the flow of dollars across our border,

then it makes perfect sense that someone is going to try and subvert that and create an offshore dollar funding system, right? Just strategically. If you need dollars, you have to set up a way to get them. Well, using the trade imbalance between the U.S. and Canada is a perfect way to do that. So conceptually, everything else mechanistically after that you don't really have to understand. You don't understand that there's a source of dollars and they need to figure out a way to incentivize the market to go get it. And who are they going to make a deal with to do this? Well, the people who need the fucking dollars, which are over in Europe.

And the Europeans run a major trade surplus with the United States and they're doing the same thing. They want to have control over the price of international dollars and they don't want the United States to have it. It's really what you need to understand. Now, how does Trump and company combat this? Well, in that podcast, in that market report that I did after on Wednesday last week, I put a little meme up of Baron Trump with his dad. You've seen that one.

He's speaking at these barren standing over Trump. And I said, father, the snow Mexicans are going to come bearing gifts. Don't accept them. Meaning what Carney is eventually going to do. he's going to start talking tough in order to get elected. He's going to make a big show of ending the carbon tax. All he did was cut it down to zero. He didn't actually get rid of it, right?

He's going to do all these things. And then after he's cut all his deals and made all his deals with the Europeans, and then secures his reelection or his actual election, once he's installed, then he's going to come to Trump and go, look, let's cut a deal. I'll help you with fentanyl on the border. I'll do whatever I have to. Just don't put the tariffs on. And they're going to appeal to Trump's transactional nature in order to preserve the trade

surplus, which is the key to them sending to doing an end run around our control over the value of the dollar. And at the same time, he can bribe Canadians with this bullshit by using that $10 billion a month. That pays for $300 billion worth of Canadian debt at 3%. percent. Hey, do you need a new pipeline from Alberta to Ontario? Hey, you need this, you need that. Let's do all that. And that's what he's going to run on. Let's see it coming. So the key to Trump not falling for this bullshit is to say, no matter what happens, we're killing the trade surplus

between America and Canada. We have to for our own defense. You can't cheat on trade anymore. You get $200 billion of your subsidy unless you're a state and you work for us and you work with us us not for us with us that is what I see the the the gate is here and um you know they want to go we're going to mobilize for war how are they going to spend how they got to pay for it how are they going to pay for you know more defense how they're going to pay for the infrastructure canada's broke Doesn't have any gold reserves? It's got U.S. dollar reserves. You know, you know, like if Trump is successful about everything else, what he's going to do is he's going to create a, he's going to force the selling of U.S. treasuries out of the Canadian foreign exchange reserves to, you know, keep the Canadian dollar from going to two bucks. Or is he just going to trash the Canadian dollar in the process and strip mine the country?

These are all good questions. I don't have answers to, but it's all implied by everything that's happened so far. You know, one of the cool things that I got to see out of your podcast, you got to have Martin Armstrong on. I was like, oh, that's cool. You know, and actually, I think if memory serves me correct, you, Alex and Martin were on a different podcast. And so it's kind of like, once again, I always talk about worlds colliding on this side, right? Like different people that I have on that are respect. And so listen to you and Martin talk about this was,

fascinating to me because I'm like I can probably listen to it 50 times Tom and I'm like I'm just it's like going to expert level in some video game you know or or going to some like economics class and you're like I know there's people listening as right now going you should be asking this and you should ask that you should ask this like I suggest you just go listen to Tom and and and Martin go back and forth about it in your ways because I'm like when I was listening you to talk about this. And maybe I'm wrong on this. So I'll put, maybe I just, I, once again, don't fully understand. I, I, I hear this bond market thing. I hear the, I hear the, what our rates set at, what your rate set at, the differential,

all the things. And I'm like, I just, I don't know how to make it make sense in my, my head. And I was waiting for Martin to be like, holy shit, but he goes off and talks about Socrates and a bunch of different things. Or did I miss that? What did you think about Martin's response? Well, Martin's response was what he was, I brought it up on the podcast that he and I did together on my podcast. Yes. That's what I'm talking about. And I'm saying to people, they should go listen to that because it's fascinating here.

You and Martin go back and forth. Right. It's episode 209 of the Gold Goats and Guns podcast. I published it yesterday. You know, and, you know, Martin has a lot more experience on this than I do. And I will defer to him in some ways. I brought this up to him. And what he said was this is just a typical response when they're in trouble.

to try and stabilize their own markets because they know that their markets are going to be destabilized by the changes that Trump is bringing. And, you know, in effect, kind of throwing a little water on me, which is fine. I welcome that sometimes because, hey, man, I like to go, you know, I like to go out there in Schizophrenpost because that's how we get, that's how, when you go out that far, right, in this case, what I just laid out, and you go out that far, that's when you start to uncover. really interesting stuff, even if you're wrong about certain things, even if you've made a, you know, a methodological error in one of your original assumptions, which, hey man, like, I've done it a thousand times. I'll, you know, and but that's the only way you learn.

This is the, this is the whole scientist thing. Like, and I use the phrase methodological error on purpose because this is where I come from, right? Well, I mean you and at me, me, you and Alex have talked about this a lot. This is part of what doing this is about is talking through these things. and without having all the information, right? Because you're not in a bunch of these rooms. Heck, you're talking. It's like you're constantly refining what you're doing.

I completely understand. Yeah. And that's why I brought it up to Marty on the podcast the other day. And when we recorded last week, because he and I recorded on. So Tuesday, I'm on with you and Alex. Wednesday, I have to do a market report from my people. Carney is brought into power on Tuesday or Monday. He announces the friggin bond sale on Tuesday.

Before I do the, I do the market report on Wednesday morning, I'm trying to make sense of what I've seen. And I, you know, I hatched some idea in my head. And I go, oh, it could be this. It probably is something like this. And then I speak to Martin on Thursday afternoon, right? And then they don't get the podcast published until yesterday, which is the Sunday afterwards. And, you know, and I have a chance to review. it and think of it in my head at that time. But again, these are ideas that are nascent, right?

They're embryonic and you're trying to like, you know, work through it. And you should ask yourself these questions because if I don't put these things out into the world, right? And I can tell you that the response to that market report, I got an unbelievable, friggin response from people that that thing was getting shared all through the corridor's power. Right. And memos were being prepared the whole nine yards. And I don't know if I'm right about this or not, but it's something to worry about. What are they trying to set up? And how are they trying to set up an adversary relationship between Canada and the United States at a financial level as well as at a cultural and political level as well as I'm going to ask a really simple question, like

almost probably too simple. You said Carney announced a bond sale, correct? Mm-hmm. Can you? Or the bank of Canada. Yeah, it was announced, After Carney was, was, was, this is probably economics beginner level. I don't really care. Why does he announce, like, why does it, why do we have to have a bond sale? What is the purpose of a bond sale? Well, it's to raise money. It's to raise money for the treasury, right?

So they sell bonds in order to get money. So what the, what the bank Canada is doing is, is raising money in US dollars, right? And then we're going to pay coupon payments make in dollars as well. They can raise so they can go out and raise $10 billion. So if I may. The government or whatever they want to do with it. Right. They're running a budget.

You're going to buy a bond. Yep. You're going to buy a bond. Tom's going to buy a bond. He has to pay in American dollars and he's going to get paid back in American dollars. Correct? Yep. Well, I'm going to, I'm going to lend you.

You're Canada. You're the bank of Canada or you're the Treasury Department. You're Canadian Treasury Department. I've got 10 grand. I'm going to go buy a $10,000, 10 year bond from you at 3%. You're going to give, I'm going to pay you 10 grand. and you're going to pay me 3% a year for 10 years. And at the end of the bond, you're going to give me my 10 grand back.

That's the way it works. Okay. So if I have the 10 grand, does every country offer this? Does the United States offer this? Like, can you go to China and get this? Well, not to get U.S. dollars necessarily. Correct. You can do that to get you normally, they issue bonds in their own currency.

And generally, it's going to be the banks are buying a lot of this. stuff and then putting it on their reserves and then lend out into the banking system. And then you go buy a car loan with it. You go buy a mortgage with it or whatever. And so what's important here is to understand that what Carney is trying to do is to try and push collateral debt into the system at below market rates. And he's trying to schmooze potential investors with the, you know, look, the thing here is, and this is the first thing that everybody said to me is, why?

Why would anybody do that? They can go and get dollars in the United States. It's a four and a half percent. They can get better return on their money. You can buy a 10 year bond. So you're saying right now in Canada, three percent to go to the United States four and a half. I'm saying that the people who need, I'm saying that the people who need dollars badly are going to be willing to pay an uneconomic price at an uneconomic yield in order to get those dollars. They're willing to pay because remember, when the yield is low, the price is high. Bond math is exactly the opposite of stock math. So the price of the bond, it's being sold at a price much higher than effectively higher than the, as the as the bond yield goes down, the price is going up. Because the bond pays a flat coupon rate, 3%.

If you bid the price of the bond up to 110 and at a price of 100, so at par, 100 or 1, you bid it up to 10% above par, now the bond is still paying 3%, but you paid 110 for it. You have to subtract that difference between PAR from the effective yield on the bond, because you paid above market rate. So say you bought a $10,000 bond, right? It's a face value of $10,000 paying 3%, but you paid $11,000 for the bond, right? That $1,000 extra on that you paid has to be subtracted from the effective yield, because you're still only getting at 3% paid off the bond over the course of the price of the bond. You're not going to get 3% on 11,000.

the bond was issued at 10,000. You paid 11 for it. So as the price of the effective yield on the bond price goes on bond goes down to 285, run it through the bond equation. I don't know what the hell the number is, but the effective yield goes down. Similarly, if you were to buy that same $10,000 bond for $9,000, you're getting an effective higher yield, right? That makes sense?

Well, I- Because you're getting 3% paid on the $9,000 you paid, not the $10,000 that the bond is written against. Bond math is exactly opposite. And that took me a long time to get used to this as well. John, don't, don't, don't, I just, I just think of like, don't, don't get up with yourself if you don't get it the first time you hear. Well, I'm just sitting here and I'm like, well, if I wanted to go out and buy $10,000

worth of American money, you know, call it. You would have, well, yeah, no, you're not buying $10,000 with American money. You're selling $10,000 of American money to buy a bond. that's paying 3% that's going to pay you 3% a year for 10 years and you're going to get your money back you're forgoing to use of your $10,000 correct and you to get three to get $300 a year in interest but if I wanted to but but okay walk me through my money and if you want that money back you got to sell that bond to somebody else yes but I am saying if I wanted to do that you're saying I'm selling my American dollars but I actually don't have American dollars I have Canadian dollars

Right. So my Canadian dollars in order in order to get to a number of even a thousand American dollars, you have to say I have to now 140 some dollars worth of Canadian. So now I look at the three percent and I go, well, like now, now I'm taking on now I'm taking on currency risk. Correct. Like there's just there's a lot. Now it gets even more complicated. Now it gets even more complicated. Now you're bringing up like the Canadian US dollar thing. Oh, now it gets even more complicated. because this is how, this is how these quote unquote financial crises start. Like the whole world, okay, is the financial world, the global financial system is all about laying off the other guy, your risk onto somebody else, right?

You're taking on risk by, you're taking on currency risk by buying an American dollar bond at a Canadian dollar exchange rate because you pay your bills in Canadian dollars. You live your life in Canadian dollars. You buy food in Canadian dollars. You earn your income in Canadian dollars, right? But you decide to buy a US dollar denominated bond and you get paid in American dollars. Well, if the dollar rises in exchange rate versus the Canadian dollar, say it's $100 to $1.42 today and it goes to $1.46, right? Where $1,000, where $1.46 Canadian now buys $1.

Now, you've made 4%. They made 4%. But if it goes the other way, this is a terrible. Right. Now it's terrible, especially if you're only getting 3% a year on the money. Now it takes 15 months to get back the money and interest that you lost on the currency exchange. So let me, let me ask a different question. I have now broken Sean's brain. Okay. Well, let me, let me ask a different question. Okay. So you offer, I understand why Canada wants American dollars. Right. American dollars is already like basically 40% more money than what our money can buy out in the world. Essentially. Essentially, I'm maybe off.

but forgive me, you get the point. Just to get the actual dollar exchange rate, it's not like I'm not more than one click away from it. Sure, but by the time different people listen to this, I'm not even that worried about. All I'm saying is an American dollar goes further than a Canadian dollar on the world market. Can we agree on that? Yes, we all can. Absolutely. To the tune of 43% more.

So I understand why Canada wants to attract that. My, and I think this is probably the question you, now I'm just catching up, is like, okay. So if I'm going to give Canada, my American dollars for 3% okay so I'm giving them my American dollars and I'm going to get 3% back on the money I gave them why wouldn't I give it to the United States if I can get if I can get my if I can give him my American dollars and get I think you said four and a half percent back I just go I go I go simple math I go well it'd make way more sense and I would trust at this point the United States to pay me back better than the Canadian government bingo and that's part

That's in many ways what Martin was talking about in the podcast we did. It's like, look, this is a way of Canada trying to shore up its finances by saying, we're going to take our trade deficit. We're going to pay our trade surplus and we're going to pay it back to you because there's less currency risk associated with buying a bond from Canada in U.S. dollars versus Canadian dollars. Absolutely. Because now you've got to, because again, like everything else, you're always speculating this.

One of the things I think I said it the last time I was on with Alex. And you've intuitively now uncovered the real problem that everybody's facing and that we all have a hard time dealing with, which is that there's always a denominator, right? The Canadian dollar is the numerator. The American dollar is the denominator. Gold is the denominator. Bitcoin is the denominator. The euro is the denominator. The Japanese yen is the denominator. There's always, you're asking, always comparing some price of something versus something else. even when we talk about, well, how much is your house worth? Oh, $400,000? Right.

House divided by dollars. It's that the dollars is the denominator. Well, in Canadian dollars, it's, you know, $600,000 or $560 or whatever the hell of $5.65, because I can do 143 times 400 in my head on the fly while doing a podcast because I'm that guy. But my point being is that you, this is the part that everybody has a. real hard the hardest time with with with these things is that you always have to think in terms of the denominator how many ounces of gold is that actually how many of this when you look at the stock market is it you're looking at it turn priced in dollars but what is it what does the

Dow Jones look like Martin Armstrong does this all the time this is part of his his thing and he's absolutely right price the Dow in terms of euros in terms of Canadian dollars in terms of mex and pesos and then you'll see where the capital's flowing right you'll see you'll you'll see you know you'll you'll understand who's getting the better deal here because it is all about, you know, where the, you know, where you can eventually you do, you start talking about these things is how are you trying to shift the capital flow from one side of the equation to the other side of the equation? You're trying to set up a scenario where you can incentivize somebody to go and buy that thing that you want them to buy. And you do that

by in the currency markets by changing the exchange rate. or changing the yield on the currency through the bond market. It's all about that. And it's, believe me, folks, when I say this, three years ago, I didn't understand a fucking word of this. When I was going through this stuff in my head, I looked like Sean does today. And I'm not kidding. I don't, I've said it many times.

I never wanted to be a currency guy. I never wanted to be a bond guy. I wanted to be a gold guy. And I, you know, I wanted to be a hard asset. But unfortunately, this is the world we actually live in. So I follow you along. I follow you along. I just go, okay.

So then that even makes sense on why Trump would be like, we got to close down. You're getting this surplus off us. You're going to use the surplus to pay back everybody that gives you their American dollars. Because now you don't have to worry about what the Canadian dollars do. More importantly, the Canadians can offer debt at much lower interest rates because because they have this massive trade surplus than they would otherwise. Canada's interest rates would not be 275. 275 basis points, 2.75% if your trade deficit was gone, it'd be 6%.

How is Canada trading their 10-year at 125 basis points, a buck and a point in a quarter, below the American debt? Same thing with the Bundesbank over in Germany. Like, why is everybody trading at a lower rate than we are? When we're, when our asset, the U.S. Treasury is the world's reserve asset for all intents and purposes, it makes no fucking sense. It's not because American debt is, it's why are, how is this, it's because the Americans are running such a massive trade deficit that the dollars are flowing out and everybody's watching the debt pile up and they're betting that the United States is going to go broke before Canada goes broke. But I got news for you. If the United States goes broke,

Canada's going to go broke because there ain't going to be any frigging money flowing across the border. So let's normalize the trade flows, at least reasonably. Let's get rid of the tariffs that are enforcing this dollars go out, goods come back into the United States, which sounds like a great deal until you realize that dollars go out and we buy shit in return. And we don't make anything ourselves. So we're not building wealth. We're just consuming our seed corn. That's the, that's what globalism is done. That's what the, a globalist Fed did when we were at the zero bound and when we were constantly being forced to lower interest rates and not being on control of our own monetary policy throughout the entire

LIBOR years where LIBOR and the offshore dollar markets was pricing the US dollar. And they were, and this is the thing that people don't understand. We understand the basic levels now, or at least we've outlined it. Now you have to understand that the dollars that are off shore can be levered up through debt and use this collateral in a circle jerk, especially in city of London, because in city of London, collateral can be pledged 100 fucking times or can be pledged infinitely. Meaning, for example, I go to the LBMA, the London Bullion Market Exchange Association, and I buy a gold contract, right? And, um, and, um, to go long gold. Okay. Now I've got a gold futures contract and I've got gold as a collateral.

I can then use that gold futures contract and the value that if gold goes up for price, I've got more collateral. I can use that to go buy, you know, to go lay off the risk of the gold contract with a, you know, with a U.S. dollar bond. And I can then use that dollar contract. I use that dollar interest rate derivative to then, and which is pledged against the same gold, by the way, to go buy a Japanese, go buy a hedge against the Japanese yen, which I can then used to go by a hedge against the European, the, the euro, which I can then use to go buy another gold contract and then spiral the whole fucking thing up again. This has been going on, this, this kind of laundry, leather rinse, repeat bullshit has been going on for decades.

It's how they've suppressed the price of gold in many ways. It's how they've created this massive offshore dollar market that's orders of magnitude larger than domestic dollar markets. This is why, for years, for years, years, the euro dollar system was actually setting the United States monetary policy at the margin. Jeff Snyder was when he was at Alamber partners a decade ago, was absolutely correct about this. And that's because of the unique thing that is city of London, the ability to use gold, which is the only hard collateral in the system, to be hypothesated a hundred times, meaning there's a hundred gold contracts out there per ounce of physical gold in the vaults.

Okay? That whole system is why the quote unquote shadow banking system, which is just private lending of dollars, you know, we did the whole government thing. Just wait until it's just me and you. And you want to expand the podcast and I've got dollars on my account. And as opposed to going to bank to get the money, can you come to me? or my daughter wants to buy a, buy a house. And I go, I'll injure the money.

Don't go to the bank. The bank will charge the 7%. Bank of dad will charge you 3%. And you can buy the house. Here's the money. And you pay me 3%. And hey, then it stays in the family. Oh, by the way, it's kind of very Greek, by the way.

But it's the same thing. That's shadow banking in a nutshell. I didn't understand what that term meant for fucking 10 years. I'm like, oh, it's very simple. It's like, it's just private lending. Okay. So when you have the ability through coordinated central bank policy, through the legal structures in various places around the world, specifically the square mile city of London, where you can pledge the same collateral 100 times, then you start to create, you start to take a dollar that was lent and turn it into 100. What's the limit in the United States?

What's the limit in the United States or Canada or both? Well, it depends on the type of contract. It depends on where you are. But in London, there's no limit. Yeah. I don't know what the rules are, but they're not, they're not unlimited. The point is to get the money back into the London system in order for them to set my, our monetary policy at the margin by being able to lever up these fucking dollars, this trade,

Canadian trade surplus and then use it as a weapon against us to crash our own freaking markets with synthetic dollars that they created out of fucking thin air, which is what these fucking British assholes have been doing for 300 years. That's the point. That needs to end. Everything else is just fucking mechanics. No. It's over.

Fuck you. Normalize it all. That's it. It's it, Sean. It's not any more complicated than that. And y'all are being used as. one of the vectors to maintain this rotten system of child trafficking and pedophilia and technocracy and um eugenics what the hell the the assisted suicide and all the rest of it yougenics

no meat climate change carbon credits carbon debt fuck fuck mark carnie and fuck all these people none of us want to live like this. Your price, Canadians, is your pride that you have to become the 51st state of Canada. What you get is your life back. It's an offer of independence. But first, we got to break through the psychological barrier of you actually being an independent country. What we're finding, folks, is that nobody's an independent country. You all been living off the fucking U.S. taxpayer to the point where the U.S. taxpayer didn't understand how bad it was. Yon Musk goes out on Ted Cruz's podcast the other day and says, there's 14 freaking computers that we found that they can literally go, I mean, a billion dollars and send it out.

No accounting system, that there's no accounting system, that there's no, that there's this, that the United States is literally being run as like there's, there's an independent system where we collect the tax money, we print the money, we spend the money, and we print the money. And These three things are not related to each other in any way, matter, shape, or form. There's no unified accounting ledger of any of this. How the fuck did that system get built? And why should any, and why, as an American taxpayer, should I be sitting here being willing to subsidize any of this anymore?

And why would you want to live under an illusion? That's the important part. That's the question you should all be asking yourself when you look in the mirror in the morning. Do you really have, are you really independent? Are you really a different country? Or is it just a fucking bribe? Because that's what it looks like to me. And I, if I was an American, this would could be coming over a lot less hostile, right? If I was Canadian explaining all this, you'd be like, oh, wow. Now just how about I just append A at the end of every fucking sentence and we uh and we get past the accent because we have more in common than we have a

in in then we are divided but these fucking people are literally just trying to steal from us diddle our frigging kids and then tell us it was our fault that's all we deserve oh here's a here's some pittance slave plebe oh by the way we need you to go fight and die in ukraine some shit hole over in ukraine no that's your price I bet on fuck all that. This is what we have to like really, really get under our skins. And once you, I viscerally understand this now. And that's why I'm like, no, no, no, no.

I want what's best for Canadians. And what's best for Canadians is that you reject all of this shit. And we either, we come to some kind of negotiated settlement, either a full on proper trade deal where both sides are respected. And both sides are equal partners. and we'll help rebuild you because you guys have been stripped mind as well as I we have everybody needs to be rebuilt

you go get it from the fuckers who stole it from us that's what's on the table Trump hasn't made that offer really made that offer yet because he's bad at it well I don't know maybe he has a plan but so far if you know as Chris and I talked about the other day like he has to do a better job of selling this to Canadians so here I am as this point man not that I Not that I work with the Trump administration at all.

I don't. But what I'm saying is, I'm trying to explain it in terms of, I hope you guys understand. I think I'll, I think Albertans get a lot of what you're saying, right? I hope so. I really do. Tom, I always appreciate you coming on. And, well, I look forward to the next time. Either way, thanks for, thanks for doing this today.

I appreciate it. It was great. I had fun because, you know, when I get, I get, like, riled up like that. Like that's the crescendo. It's the fun part. Like, you know, seriously, I, I seriously, Sean, I just want, this is, this is our, this is our purpose, right? This is our, this is our moment. If you're interested in seeing Tom Longo live in person, may 10th in Calgary. That should be, I assume there will be a couple.

You're going to be on a sound money round table and, and then geopolitics, World War III roundtable. So that should be interesting. Either way, Tom, look forward to seeing your person. am I am I doing the lead-off talk this year as well you're not this time you're not this time you're in the lead-off roundtable but we got a little different system this time which which is all right I'm looking forward to where you slot in the lineup this time around I think he's going to be a ton of fun I think it's going to be fun I'm really looking forward to it and I know a lot of people that are going to be there and let's let's make this thing is this is a I think cornerstone is the opportunity for us to really reach across you know political and cultural and everything device. I think what you're doing is impressive. And it's also timely. And I don't know that we planned on this that way, right?

Definitely not. I didn't know. I didn't write the script. Yeah. No, you didn't write the script, but somebody did. Yeah. Amen to that. Amen to that.

Take care of Sean.