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Bitcoin Hardtalk 90-2

Bitcoin Hardtalk 90-2

Introduction: The World Through the Lens of Macroeconomics

This episode of Bitcoin Hard Talk delves into the complex interplay of global macroeconomic forces, focusing on recent developments in the European Union, Japan, and the ongoing trade war between the United States and China. The analysis is framed through a central, unifying thesis: the existence and influence of a "Proof of Weapons Network." This concept posits that a stateless, powerful coalition of financial, corporate, military, and intelligence entities is actively managing global events to consolidate its power and profit, treating sovereign nations as mere assets within a larger portfolio. The episode breaks down how recent policies, sanctions, and political maneuvers are not isolated events but are instead calculated moves within this grander geopolitical strategy.

The unabridged transcript follows below
You can watch the original video here

The Core Thesis: The Proof of Weapons Network (POWN)

The foundational concept presented is the "Proof of Weapons Network" (POWN), a term used to describe a powerful, stateless entity that dictates global policy for its own benefit. The speaker defines this network as a consortium of interconnected power centers:

  • The "Banksters" and Financial Industrial Complex: Global banks and financial institutions that control the flow of capital.
  • The Corporations and Technical Industrial Complex: Multinational corporations, particularly in technology, that influence policy and profit from global instability.
  • The Military-Industrial Complex: Defense contractors and arms manufacturers who benefit from perpetual conflict and rising geopolitical tensions.
  • Intelligence Agencies: State and private intelligence networks that use information, blackmail, and covert operations to control governments and shape events.

According to this thesis, the POWN operates above the level of individual nations. It uses mechanisms like blackmail and control over criminal networks to influence governments, turning them into "puppet governments" that serve the network's agenda. The speaker names BlackRock as the "fictitious CEO" of this network, not as a literal leader but as a symbolic representation of the entity with the most power, determined by the flow of capital and asset management. The core activity of the POWN is to "vassalize" nations, particularly Western countries like the United States, the UK, and the EU, transforming their economies and policies into tools for generating profit for the network's vast and diverse portfolio.

Case Study 1: The Vassalization and Destabilization of the European Union

The European Union is presented as a prime example of a region being actively destabilized and vassalized by the POWN. The speaker argues that recent EU policies are not designed to benefit European citizens but to serve the corporate and military arms of the network.

The Futility of Russian Sanctions:
The EU's approval of its 18th round of sanctions against Russia, including a lower oil price cap, is dismissed as political theater. The speaker contends that these sanctions have consistently failed to harm Russia and have instead inflicted severe economic damage on Europe. The price cap primarily benefits countries like China and India, who buy Russian oil at a discount and then sell refined products back to Europe at an inflated price. This policy directly increases energy costs for European citizens and businesses, creating more revenue for Russia and its partners while weakening the European economy.

Strategic Economic Warfare Against Europe:
The high energy costs resulting from these sanctions and the destruction of the Nord Stream pipeline (which the speaker attributes to the CIA as a POWN operation) are framed as a deliberate strategy to dismantle Europe's industrial base, particularly Germany's manufacturing sector. With some of the world's highest electricity prices, the EU's ambition to compete in the global AI race is rendered impossible, as AI development requires vast amounts of cheap energy. This economic weakening creates opportunities for POWN entities, like BlackRock and other private equity firms, to acquire distressed European assets—from industrial companies to critical infrastructure like water utilities—at bargain prices.

NATO as a Profit Center:
The ongoing conflict in Ukraine is portrayed as a mechanism to funnel wealth to the military-industrial complex. By antagonizing Russia through NATO expansion and fueling the war, the POWN ensures a constant demand for weapons. European nations are pressured to increase their NATO defense spending, with the money flowing directly to American and multinational defense contractors like Lockheed Martin and General Dynamics. This serves the dual purpose of enriching the POWN's portfolio companies while further draining European economies.

Case Study 2: Trump, Tariffs, and the American Role in the Global Reset

Contrary to the popular narrative of Donald Trump as an anti-establishment populist, the speaker presents him as a willing and effective instrument of the POWN, installed to orchestrate a "reset" of the global order through chaotic but calculated policies.

The "Trade War" as Managed Theater:
Trump's tariff policies are not viewed as a genuine effort to bring back American jobs or reduce the trade deficit. Instead, they are seen as a tool to create global economic volatility, from which the POWN profits. The tariffs have several strategic effects:

  1. Consolidation of Power: They harm smaller businesses that cannot absorb the costs, allowing large multinational corporations within the POWN's portfolio to acquire their bankrupt competitors.
  2. Shifting Supply Chains: They force manufacturing to shift from China to other countries like Vietnam, whose economies are then "pumped" and integrated into the POWN's sphere of influence. Vietnam's record export data is cited as direct evidence of this strategic relocation.
  3. Hypocrisy and Selective Enforcement: The speaker highlights the contradiction of a supposed trade war while key POWN companies like Nvidia are permitted to resume and even expand sales of advanced AI chips (like the H20 GPU) to China. This demonstrates that the "war" is not a blanket policy but a selective tool used to benefit the most powerful players, with Nvidia's market cap soaring as a result of these backdoor deals.

The Inflationary Tax on the American People:
Tariffs on components, especially for batteries (a 93.5% tariff on Chinese components is mentioned), act as a direct tax on American consumers and businesses. Since the US does not have the domestic capacity to produce these components, companies like Tesla, Ford, and GM must pay more for essential materials like lithium and cobalt. This drives up the price of electric vehicles and other goods, fueling inflation and weakening the US dollar. This policy, presented as "America First," ultimately serves to weaken the domestic economy while strengthening the POWN's global, diversified portfolio.

The Global Financial Reset: Debt, Inflation, and the Japanification of the West

The episode draws a stark parallel between the economic trajectory of Japan and the path the United States is now on, warning of an impending crisis driven by unsustainable debt and inflationary monetary policy.

Japan as a Cautionary Tale:
Japan is described as a foreshadowing of the West's future. With a debt-to-GDP ratio exceeding 260%—the highest in the developed world—and rising bond yields, Japan's economy is in a precarious position. The Bank of Japan has been forced to monetize this debt, owning over 52% of all government bonds. This has led to significant unrealized losses on its balance sheet as the value of these bonds has plummeted. Despite its dire fiscal situation, Japan's long-term borrowing costs are now rising, signaling a loss of market confidence.

The Unsustainable US Debt Spiral:
The speaker argues that the US is in an even more dangerous position than Japan because, unlike Japan, it runs a massive trade deficit. The US federal deficit is projected to hit $1.8 trillion this year, a significant increase from the previous year. To finance this, the US must issue trillions of dollars in new debt. However, the cost of this borrowing is soaring, with the 10-year Treasury yield pushing towards 4.5% and the 30-year yield already above 5%.

The public feud between Trump and Fed Chair Jerome Powell is framed as a distraction. Trump's call for massive rate cuts (300 basis points) is not a rogue demand but aligns with the POWN's need to lower short-term borrowing costs to service the national debt. This policy, however, would likely cause long-term rates to skyrocket and unleash significant inflation. The US is moving towards a "debt-based Ponzi scheme," where it must continuously roll over its debt at increasingly unfavorable rates, leading inevitably to an inflationary spiral to devalue the debt. This environment benefits asset holders (stocks, real estate, Bitcoin) at the expense of wage earners and savers.

The Rise of a Multipolar World and China's Strategy

A direct consequence of the POWN's policies is the accelerated formation of a multipolar world order, with nations actively seeking alternatives to the US-dominated system.

The BRICS Alliance:
US tariff policies and sanctions have pushed countries like Russia, Iran, and Brazil closer to China, solidifying the BRICS alliance as a significant economic and geopolitical bloc. This bloc, along with partners in the GCC (Gulf Cooperation Council) and ASEAN (Association of Southeast Asian Nations), is creating parallel trade and financial networks that bypass the US dollar. Over a trillion dollars has already been traded among BRICS nations in their local currencies, signaling a clear trend of de-dollarization.

China's Strategic Preparations:
China is portrayed as making shrewd strategic moves to protect itself and enhance its power within this new world order. It is currently buying oil from Russia, Saudi Arabia, and Iran at a historic pace, building the world's largest strategic oil reserves. This serves two purposes:

  1. Energy Sovereignty: It prepares China for potential future conflicts or sanctions, ensuring its economy can function independently.
  2. Market Power: By controlling such a vast supply, China could eventually influence global oil prices, rivaling the power of OPEC+ and giving it significant leverage over energy-dependent nations.

This accumulation of strategic reserves, contrasted with the depletion of reserves in the US (both petroleum and, as mentioned in a previous episode, Bitcoin), positions China as a dominant force in the emerging multipolar landscape.

Conclusion: Navigating a World of Engineered Chaos

The episode concludes by reiterating that the seemingly chaotic global events are part of a coordinated strategy by the Proof of Weapons Network to reset the world order in its favor. This reset involves weakening and vassalizing Western nations, consolidating corporate power, and profiting from the volatility of a new multipolar world.

In this environment of manipulated fiat currencies, unsustainable debt, and engineered inflation, the speaker presents Bitcoin as a vital escape hatch. Its fixed, predictable, and decentralized monetary policy stands in stark contrast to the politically driven chaos of the traditional financial system. The flight of capital into Bitcoin and other hard assets like gold is a rational response to the systematic debasement of fiat currencies. The final call to action is for listeners to educate themselves, understand these powerful forces at play, and take steps to protect their wealth and sovereignty in a world that is being fundamentally reshaped.

Unabridge transcript

Welcome back to Bitcoin Hard Talk, episode 90, part two: This Week in Macro. This week, we'll cover what's happening in the EU, what's happening in Japan, and what that means for China and America, the two competing trade war superpowers at the moment. We're going to be covering everything that happened this week in macro, mainly focusing on those two themes. If you didn't watch part one, where I covered this week in Bitcoin and all of the different regulations happening in the Bitcoin, crypto, and CBDC market that are leading to certain solutions we'll be covering this week, make sure you go back and watch that. It will be available, or you can just jump straight into part two.

Now, if you're a long-term listener of Bitcoin Hard Talk, you'll know about the Proof of Weapons Network, which currently has BlackRock as its fictitious CEO. I say CEO because it's the most important actor. It moves based upon the flow of funds and who has the power in the Proof of Weapons Network. If you haven't watched my blog on the Proof of Weapons Network, I gave a little AI summary there, or you can watch the full video where I give a full explanation. I don't want to go through it in every single video, but it is a stateless entity that consists of the banksters, the corporations, the technical-industrial complex, the military-industrial complex, the financial-industrial complex, and the intelligence agencies, and their control over government through various blackmail operations and criminal networks in order to create these black operations and manage the different countries like a portfolio. This is particularly true for Western countries like America, the European Union, and colonies like Israel, the UK, and various other colonies of the previous UK empire.

The European Union is currently being vassalized into the Proof of Weapons Network. What that means is that the European Union and the European Central Bank don't use money or policy for Europeans. They use it for the companies that profit from this vassalization. A country just becomes a tool for corporate profits for the Proof of Weapons Network; you become a tool of the portfolio. You get destabilization campaigns that work against the European people. You have uni-party operations like open borders and mass deportations that lead to destabilization campaigns. They can use media to fuel racial and religious tensions that can lead to surveillance and war progressions. They can use organizations like NATO to increase weapon sales, and they can use organizations like USAID to take over BBC funding in order to push out a narrative that leads to you justifying why money is not being spent on the people but is going to Ukraine to push the profits of Lockheed Martin and General Dynamics. Then, US corporations like Tesla that need rare earth minerals get to benefit from having the components of their batteries and various other things by funding militia groups like ISIS, Al-Qaeda, M23, and M13 to engage in covert wars and all of the apparatus that is set up around that.

The EU is going through a major destabilization campaign, and it particularly accumulated in the covert regime change in Ukraine, installing a puppet government for the military-industrial complex and then antagonizing Russia through NATO expansion so you could vassalize the land over to Russia, and BlackRock might be able to get some of those components for its portfolio companies. The latest thing that the EU is doing, in its infinite wisdom for the Proof of Weapons Network, is that it has approved a new round of sanctions and a lower oil price cap. This is the 18th round of Russian oil sanctions. None of them worked, yet they think that this oil price cap is going to fool enough people into thinking that they're sanctioning to stop Russia while they're profiting from the whole war and everything that happens as well. So let's move into common sense and analyze this a little bit more.

Firstly, what does a price cap on oil do? It doesn't affect Russia. It does affect partners like the EU. When the EU needs to purchase this oil, it's going to harm the European Union more than it's going to actually harm Russia. We've had 17 rounds of sanctions that have failed. Sanctions lower oil prices for who? They lower oil prices for the ones that are buying from Russia, which is China and India. India is then selling it more expensively to the European Union because of the cap from these sanctions. This just raises the price of oil for Europeans, which creates more revenue for Russia.

What else does it impact? We're told there is currently an artificial intelligence race, which there absolutely is. But Starmer from the UK is saying they want to be a vital part of the AI race. If you want to be a vital part of the AI race, you need cheap electricity, which requires cheap gas, which was switched off when they sanctioned Russia and the CIA blew up the Nord Stream pipeline as part of the Proof of Weapons Network campaign to destroy Germany's manufacturing base. Yet some EU members have the world's highest rates of electricity due to costly gas because of these sanctions. This is strategically weakening the economy, and then private equity firms at BlackRock get to purchase up all those assets. Foreign nations get to purchase assets in distress, like Thames Water in the UK, and they get to buy water assets in distress. If Russian oil production is cut in half as a result of these price caps, then the European economies will collapse because they need to work with Russia. This was a campaign to weaken it. That's how you know that our leaders and the European Union do not work for the Europeans. They work for the corporations, and we've all been vassalized into the Proof of Weapons Network, which is represented by the BlackRock portfolio companies now.

So what does Trump do in reaction? Trump says, "All right, now we've done that humiliation ritual where Zelenskyy was kind of moving over to Europe. We get to pretend we're the peacekeepers, and I send JD Vance over to Europe to do a humiliation ritual. Then suddenly you all increase your NATO budget with Zelenskyy to 5% so that the Eurodollar can be pumped and spend all that money back into American corporations via all the corruption that happens in between, so that you create more inflation in Europe and you get to strengthen the euro relative to the dollar as these tariff policies are being negotiated."

Trump says Putin's a bad guy; he's no longer the person of peace. Every time we want peace, they bomb more. So we need to send more weapons, we need to print more GDP, and we need to have some fake growth from the big beautiful bill, and we're going to get NATO to pay for it so that we can have a currency play as well. Trump has come out and said he's now going to impose severe sanctions on Russia if there is no war deal made within 50 days.

We've already seen all the sanctions. This is what led to the creation of BRICS, which led to de-dollarization and all the networks so that they could trade with each other. That ended up empowering China and partnering with Russia and Iran, where we ended up with this power struggle that led to the installation of Trump in the first place so that the world's order could be reset through tariff policies, which only pushes people closer to China and BRICS due to the strategic alliances and the wars and everything that's happened that we cover in the geopolitical section.

So what have we seen as a result of these tariffs? Well, many Chinese factories are now simply moving to Vietnam, and Vietnam is negotiating their tariff policy, so you are pumping Vietnamese economies. The large corporations, and the ones that can't afford the tariffs, are going bankrupt. The large multinational corporations are being done a favor by the Trump administration through these tariff policies for the Proof of Weapons Network, which has a very diverse portfolio that can now strategically acquire all of the bankrupt companies and consolidate them, just like happened in COVID but with a different flavor. Vietnam released the highest export data it has ever had as a result of this, so you can see what's actually happening. There will always be ways around this because the dollar doesn't dominate anymore, and we're in a multipolar world order. So it strengthens a multipolar portfolio, as we've covered. Companies will keep finding workarounds because they don't work anymore.

This is driving the adoption of BRICS, which is why a trillion dollars have been traded amongst BRICS countries. And now they've all been forming partnerships between the ASEAN countries, the BRICS countries, and the Gulf Cooperation Council (GCC) countries. GCC, ASEAN, and BRICS are all trading with each other as a result of these tariff policies. So Trump this week also implemented high tariffs on Brazil, which the US is in a surplus with. So the US is in a surplus with Brazil and implemented high tariffs and enters into some kind of theater with BRICS and Brazil, with lots of things going back and forth even though they're in a surplus. Make this make sense.

At the same time, he's making enemies with his most important trading partners, more important than China, which are Canada and Mexico, and then also engaging in an EU vassalization campaign by having tariffs on, tariffs off. I think they went from 50%, and now they're going to be between 15% and 20%. But all of that has done is pushed all of these regions further east rather than further west. Obviously, they will work as a block because they're being vassalized, but the corporations that they're being vassalized into are all multinational corporations that have no "America first," "EU first," or "UK first" agenda and install puppet governments to serve their agenda. That is why nothing is working because these Western countries are being vassalized into the Proof of Work network because the financial-industrial complex securitized and financialized everything, and now the assets are controlled not in the interest of the people. So this is that globalization movement.

What else are we seeing? As we enter into these trade wars, we're seeing that global corporations like Nvidia, the second largest asset in the world with a $4.2 trillion market cap, are now suddenly able to export their Nvidia chips to China because they're global in nature. This is leading to being able to support trade despite the fact that it's meant to be anti-trade. Why? Because the Proof of Weapons Network wants their Nvidia stock to go up, and it went up to a $4.2 trillion market cap because it went up $170 overnight just based upon a backdoor negotiation that Trump is negotiating for the Proof of Weapons Network and for Nvidia. This led to the announcement that H20 chip sales are able to go to China and they're able to resume despite any of this so-called trade war that's resetting the world order. They've also rolled out a fully compliant GPU for the China Communist Party, so they are trading with the CCP because the Proof of Weapons Network can circumvent all this. This just gives more power to those large corporations. That is what this is, and that is why Trump is doing everything that he was installed to do for his backers.

Trump is doing a fantastic job for hyper-accelerating BRICS, the Proof of Weapons Network, and BlackRock. We got a new tariff this week which was a 93.5% tariff on battery components from China. Now, this has a big impact on Tesla, Ford, General Motors, and Lucid, and the prices on these different components. It pushes the price of the raw minerals like lithium, cobalt, and graphite that are all mined globally, which increases the profits of these globally mined products. Then America needs to pay more for them because they don't process them; they're mainly processed in China. Then you have these higher prices even though you also have to pay the import tax as you import them.

If those components could all be made in America, then fine. But during this destabilization phase, that's going to be inflationary. It's a tariff on the American people, an additional tax, leading to a weakening of the dollar, as we've been covering. This is leading to the cost of borrowing increasing, which is leading to this type of destabilization campaign in the US between the Federal Reserve from the Proof of Weapons Network and the Trump administration, which is going around in this merry-go-round of destabilization, distraction, and resetting the world order into this multipolar world order. Meanwhile, everyone can profit from the volatility and pumping the share prices for those that own assets, as well as neutral assets like gold and Bitcoin.

A tariff on components made with these materials will drive up global prices. This is inflationary pressure. We haven't seen the inflationary impact of these tariffs yet because the next round of deadlines comes in on the 1st of August. Then there'll be a lag, and there'll be people trying to beat those deadlines based upon the speculation of what they're doing next. But in the end, the companies that need these batteries—electric vehicle cars, normal cars, storage units, solar batteries, all of these different things—can only go up in price. This is more a weakening of the dollar. And where are you actually going to build these things? While you have a short-term build of your manufacturing base, it's going to be done on AI and robotics, which will take out those jobs eventually. That's why no matter what, you need to focus on making yourself great again. Because I'm not sure how this all goes. Well, I'm pretty sure how it goes, and we'll keep sharing the journey in This Week in Macro, This Week in Bitcoin, and This Week in Geopolitics.

Let's look into some of the numbers. The DXY is a basket of currencies, with the euro being the largest component against the dollar. As long as that is going down below $100, it's a downward trend. It had a little rally up and is now weakening again. The trend since Liberation Day is a downward trend in the dollar. It's now at 98.22 cents after this little rebound that we had, and it's been at a low of below $97.

We also had announcements and reports. The New York Times said that Trump is going to be sending a letter to Fed Chair Powell in order to try and say, "You're fired," or "Please retire." Again, there's this public argument, and they've been priming this ability to have the next federal chairperson, the so-called shadow chair, when Powell has to leave in May 2026, but to render Powell useless in that time by having it known that he's leaving and what will come next by Trump installing his type of person that's going to build a perception that they're going to push short-term rates right down.

What is this all doing? This means that the long-term rates to lend to the US government, the 10-year Treasury, have now broken and are about to break 4.5%. It keeps going there. So that means the US government debt and the $10 trillion that needs to be refinanced, which is currently at an average of 3.3%, can only be refinanced in the cheapest way by doing a short-term Ponzi by getting short-term rates down, but the long-term rates are going up. So, you can borrow at the long-term rates, but you have to pay a much, much higher yield on that. The yield on the 30-year rates has already broken above 5%. It sometimes fluctuates a little bit, but every time we get one of these destabilization campaigns, it tends to follow with a weakening of the dollar and an increasing of the rate to borrow because the plan, as we've covered, is this whole fiscal stimulus and refinancing it with short-term debt.

If Trump thought that bonds were high after Liberation Day, which liberated the world from the dollar, and he had to capitulate from that strategy because the long-term bond yields really went up and it was in real distress, wait until he sees what comes if he successfully gets Powell to resign or be fired. It would be a destabilization campaign that most people believe would send the long-term rate soaring and strategically weaken the dollar as well. Federal Reserve Chair Jerome Powell came out this week and reportedly said that he's considered resigning. I'm not sure if I believe that. I don't think it's actually going to happen, but the shadow chair of the Fed can be announced, and they can do that strategy as well. So, we'll see what happens in that destabilization campaign. Lots of volatility, lots of profit for the Proof of Weapons Network and the financial-industrial complex.

Remember, this is the same time, if you watched part one, that Bitcoin is rising and continually reaching new all-time highs while treasury yields are rising as the US dollar is falling and gold prices are generally rising as well, even though they've had a little bit of a correction. What is the answer? Why is that all happening? It's because US deficit spending is out of control and nobody can be the person that controls it. That's why Elon Musk strategically decided that he would capture some power plays for the Proof of Weapons Network, I believe, which I'll be going through in this week in macro. I covered a little bit about my speculation on this power struggle between the technical-industrial complex, financial-industrial complex, and military-industrial complex—those parts of the Proof of Weapons Network.

Looking at the numbers that just came out, last year, the US ran a $70 billion deficit in June. There were actually better figures this year. So there is some good news. There was actually a $27 billion surplus this year, but that was due to front-running of tariffs that brought in the additional revenue and growth. We got to wait for this to roll out to actually know. But the Treasury already has its projections. This year, the US Treasury is running a $1.3 trillion deficit year to date to July. The estimate is that by the end of the year, it's going to be a $1.88 trillion deficit if we believe their projections. So $1.8 trillion is what they're estimating will happen. The Big Beautiful Bill allowed for $3.3 trillion with a $5 trillion cap over the next 10 years as well.

What was that compared to last year? If we're doing $1.8 trillion this year, last year it was $1.2 trillion. The deficit is up from Bidenomics. Trumponomics is more aggressive Bidenomics, and the money is going to the war machine, the surveillance state, and various other things, as well as tax cuts that took away from those that were on Medicaid and handed over to corporate tax cuts, which are meant to be creating jobs. The job figures are strong, and growth is strong when measured by GDP and the stock market. But that is a wealth transfer from those that don't own assets to those that do own assets. That's the issue. That's what's causing the civil unrest right now, the depression, the boomer generational divide, and all the things that are happening right now. But this year already, this deficit is getting worse while the GDP has fallen.

Trump's tariff revenues are hitting record highs, and Elon Musk decided to strategically capitalize on that. I'll be covering a bit more on that. So far, tariffs are only generating $100 billion this year. I think it's going to be approximately $300 billion. Now, that is a large increase, and I expect it to go up because I think the tariffs are real. These aren't negotiation tactics; this is a Proof of Weapons Network strategy to reset the world order. These tariff rates and income are set to rise.

At the same time, we had the US Consumer Price Index inflation numbers this week, which showed that there is a reversal on the downtrend. Now, it's early doors; it still doesn't exclude the impact of tariffs, but the CPI was slightly higher at 2.7%. I think expectations were 2.6%, and this is the first time in five months that they were higher than expectations. It was a little bit confusing because the Producer Price Index, which is inflation for the products needed to build components, was flat, and so that was slightly off as well. The impact of the Big Beautiful Bill, while it's hit the stock market which is a leading indicator, hasn't actually had its impact on inflation yet. That's why Jerome Powell is saying, "We don't know what the impact of tariffs are, so I can't reduce rates until we know. We'll watch the data and we'll analyze the impact."

This marks the beginning of a reversal in the disinflation trend. It went from 9% to a low of approximately 2.4%, and now it's up to 2.7%, which means it didn't hit the 2% goal and it looks like it's headed towards the 3% target now. I think that is going to be systemically built in, and we won't know the impact because we've got this artificial intelligence creating disinflation. We've got to figure out the impact on productivity relative to all of this debt, this divide, and the civil unrest that's happening, and all of the Trump policies through this fiscal domination and excessive printing and rolling over the debt that is inflationary in nature, as well as resetting the world order into a multipolar world order. Do you understand why Bitcoin is so much simpler than trying to figure out all this stuff? But we will do mathematics and gymnastics every single week to try and help you get through this stuff. With Bitcoin, the monetary policy is known through proof of work anytime into the future because it's enforced by math and code and nobody can change it. You can't play around with it, and you just don't get any chance to change it, and that's why people are flocking to Bitcoin.

I think a 3% consumer price index is now on the horizon, and I think we're moving into inflationary policies where they take different things out of the index. We're moving to inflation based upon Trump policy. So what did Trump do? He called out the Fed. He said, and I quote, "Cut rates by three points. That will save one trillion a year." He's right, it would save one trillion a year, but only on the short-term rates because the long-term rates would go up. So, you're getting closer and closer to a debt-based Ponzi scheme that needs to be rolled over every month, and it's still going to be higher than the 3.3%. But if you cut by 300 basis points, which has never happened in the history of the Federal Reserve, then you get to sell those bonds and roll it up, probably backed by stablecoins now that the Genius Act has passed if you want to use some crazy types of tools. This is rapidly moving to an acceleration of an inflationary environment. What does it mean in an inflationary environment? It means asset prices surge.

What does that mean? Let's have a look at Japan. We've done the European Union, the destabilization campaign, and the vassalization that the Proof of Weapons Network is using America for, with its capital market and its portfolio companies. But the people don't matter anymore, and the only way to beat it is to own the assets. So what's happening in Japan right now? Remember, the Bank of Japan is a useful tool for the Proof of Weapons Network and the Japan carry trade in order to get free money to speculate on US stocks and various other assets.

What's happening in Japan? Treasury yields, just like in America, have silently surged to record highs. They're going up, with the 30-year yield on Japan's debt hitting 3.2% this week. Japan's 30-year government bonds have lost 45% of their value since 2019. Remember, as they lose value, any bank in distress that has to hold it to maturity can end up in a distressed bank situation because as the price goes down, you're compensated by a higher yield. These are the types of things that can cause distress in foreign banks, and foreign banks are connected to the American banking system, whether it's the European Union or Japan. These types of trends can cause distress. The Bank of Japan has unrealized losses from these government bonds.

So what happens when you're trying to stimulate? You can only stimulate through debt in these situations. Now Japan's debt-to-GDP ratio has exceeded 260% for the first time in history. That is the highest in the world for a major economy. Their long-term rates to borrow are going up. Their debt-to-GDP ratio is roughly double what it is in the United States, and this is the same policy that Trump is following. It increases the amount of interest you have to pay as you go into an inflationary debt spiral. Ironically, the US is currently in a far more unsustainable position because Japan at least has a major trade surplus. Now, the Trump administration said through DOGE they're going to move to a trade surplus, but that policy's gone. The Big Beautiful Bill said, "No, we're doing a trade deficit," and we're continuing on the same path. Although you got a trade surplus this month, we need to watch that because it's a projected $1.88 trillion for this year. This is more unsustainable than the Japan situation. The Bank of Japan owns approximately 52% of all government bonds. The Federal Reserve is going to be the one that owns those bonds for its shareholders that has to pay a 6% dividend to the banksters that own the shares.

Japan's consumer price inflation, excluding fresh food, has accelerated to 3.7% year-on-year in May. This is the fastest rate increase and inflation pace since January 2023. This is exactly what the Fed wants to avoid and what Trump wants to reverse. Japan has a policy rate of 0.5%, even though you have a debt-to-GDP ratio of over 250%. Germany has a policy rate of about 2.25%, which is four and a half times higher than Japan, and a debt-to-GDP ratio of only 62%. So this is a quarter of what's happening in Japan. However, the 30-year government bonds in Germany and Japan both yield the same, 3.1%. This is just crazy economics in Japan through the destabilization campaign and vassalization of Europe. Also, Japan is now moving closer to China as a result of everyone being pushed east through these tariff policies, which are meant to increase some of the revenue in America. This is uncharted territory. We've never seen anything like this. Maybe you can compare it to the post-World War II manufacturing base economy where it was all built upon war, but that's when America had a manufacturing base. This is not really comparable given the current percentage of the size of the economy relative to these deficits.

No politician wants to be the one to cut spending despite the fact that there are rising, runaway deficits. This trade deficit is running away. Japan is just foreshadowing what could be next for many countries around the world as a result of this Proof of Weapons Network, including the US. This could be the strategy because nothing adds up; there's nothing sustainable about it.

What is China doing to protect itself? It is loading up on oil. While it looks like China is doing massive growth right now because it keeps buying more and more oil, it's buying massive amounts. It's using its own sources of alternative renewable energy to build its supplies. It's buying it from Russia, Saudi Arabia, and Iran. China is the most important client of the GCC, the BRICS nations, and the ASEAN nations as a result of these tariff policies. It is loading up on the largest oil reserves in the world right now. That's in preparation for needing to be self-sovereign, preparing for the eventuality that there may be some kind of war, which I know the Proof of Weapons Network will look to start to make up for lost profits. We'll save that for the geopolitical section.

China is becoming more important than OPEC+, and it could become more important in terms of if it wants to reduce the prices of oil. It can now build autonomy and have an important role in flooding the supply or using the supply with its vast oil reserves, at the same time as America's strategic petroleum reserve is being depleted and Trump's "drill, baby, drill" goals are not being met. There is a depletion of reserves in America and an increase in the reserves in China. And what did we have in part one? There was a depletion of the Bitcoin strategic reserves as well. At the same time as chips being made in Taiwan are required for Nvidia and the largest market cap companies in America, and China is able to control some of the oil markets, that's why these negotiations are happening. That's why Nvidia is able to sell chips to China right now, because there is a power struggle that has already been settled, and China also has the manufacturing base.

That's what is happening on the trade war side, and that's why you're seeing a loosening up of these different things. It's a very, very changing time, which leads me to believe geopolitically, which I cover more in part three, that we're entering into a new phase rather than using the old model to analyze geopolitics of how things have always been. We're entering into a new phase because the military-industrial complex needs to make up for lost profits that I believe are going to come out of the Middle East as a result of these negotiations that I'll be covering in part three. Therefore, it needs to go deeper into the EU and Asia-Pacific regions because that's where the military-industrial complex from the Proof of Weapons Network has the vassalization of Japan, the Philippines, Taiwan, and the European Union, so that they can just become tools for the military-industrial complex, financial-industrial complex, and technology-industrial complex as the world resets around those. There's resistance against them, which we see from Russia, BRICS, China, and Iran, and things that were covered in the BRICS summit last week.

The technology-industrial complex is looking to take some of the market from the financial-industrial complex as a result of all the acts that we covered in part one. As AI becomes a tool for some of these battles and cybersecurity becomes a tool that's being weaponized, cybersecurity and artificial intelligence are drawing the military-industrial complex into the technical-industrial complex. We're having this asset management by the Proof of Weapons Network based upon going all-in on technology, debt being backed by stablecoins, and these new tools of surveillance and civil unrest domestically. The tools that we use to destabilize regions in the Middle East are coming home, and that's why you're getting these campaigns that are happening within Europe while countries like Japan are stepping away from the carry trade and over to these vassalization trades where BlackRock, through trade policies, ends up consolidating into the large corporations and making up for these sources of profits.

That brings me to the types of things that we're seeing that we're going to be covering in part three, which is the Epstein files and their connection to the Proof of Weapons Network. In this week in geopolitics, this is everything we're going to cover. We're going to be covering the two stories of the Epstein files, Trump, Musk, and all of that network. We built upon it last week, and you can catch up on those videos. We're going to be doing two different stories on the geopolitical side. Even though there's more I'd like to cover, there was a lot happening on the Russia-Ukraine side and the China side. I'm going to save those for next week. I want to build upon these two stories of how the Syria escalation and the Epstein files are coming from the same Proof of Weapons Network and what that means we need to analyze. I'll be analyzing all of that in this week in geopolitics in part three.

I hope you enjoyed this week in macro. In part one, we covered the Clarity Act, the Genius Act, the anti-CBDC act, and where the Bitcoin strategic reserves of the US have gone from 200,000 to 28,000. In part two, we covered what's happening in the EU destabilization campaign, the Japan campaign based upon these tariff policies, and what we can learn for the future of China becoming more like an OPEC oil country and the US and its depletion but its movement towards a technocracy as a result of some of these Proof of Weapons Network and vassalization plays that we're seeing.