Speaker A
Today, I want to look at how the global economy will collapse, specifically how the US economy will collapse because of this war.
Explores how economic collapses are engineered by financial elites, debunking natural boom-bust cycles and revealing the role of central banks and global institutions.
Key Takeaways
- Economic collapses are not accidental but engineered by financial elites.
- Central banks use interest rates primarily to control bank lending and liquidity, not consumer spending.
- Money functions as a collective social construct that shapes reality.
- Global financial power is concentrated in a few elite institutions coordinating the flow of US dollars.
- The international order is designed to appear fair and transparent to maintain public trust.
Summary
- The video challenges the traditional economic view that financial collapses happen naturally through boom-bust cycles.
- It argues that economic collapses are deliberately engineered by powerful financial actors behind the scenes.
- Explains the boom-bust cycle as a collective delusion fueled by overconfidence and optimism during economic booms.
- Describes how banks create money through lending, effectively 'printing' money and influencing liquidity.
- Central banks coordinate liquidity by setting interest rates, which control how much banks lend, not consumer behavior directly.
- Money is portrayed as a collective hallucination or a coordinating mechanism for societal reality.
- The global financial system is controlled by elite 'game masters' including institutions like the BIS, IMF, World Bank, Wall Street, and City of London.
- Multilateral organizations like the WTO and UN are used to create an illusion of fairness and transparency in global economic governance.
- Media, education, and culture reinforce the belief in a fair and transparent international order.
- The video uses metaphors like Plato's cave to explain how society is manipulated to accept this engineered economic reality.
Full Transcript — Download SRT & Markdown
Speaker A
Now, the argument I want to make to you today is that financial collapse do not happen accidentally or naturally.
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It has to be engineered, and this is a very hard concept for us to understand, okay?
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So, uh, in economics, there's something called the boom bust cycle.
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Which basically states that in capitalism, you have, um, the economy booming, then suddenly, for whatever reason, it collapses, okay?
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It's called a boom bust cycle. And the idea is that if you study economics,
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they teach you that this is just a natural part of capitalism because in good times, people spend too much money.
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They become overconfident, and so then they, uh, waste a lot of money.
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And then it collapses, the economy turns bad, and so you have to focus on being more lean and efficient and resilient.
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So think of, you know, gaining weight, okay?
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You're gaining too much weight, and then you feel bad, so then you lose weight.
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And that's the idea of, um, the boom bust cycle.
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The problem, though, is that no one could explain properly how and why suddenly the bubble pops, okay?
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What's the mechanism or trigger for the collapse?
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If you study economics, you will never ever know the answer.
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So we are going to focus on speculation today, okay?
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So again, um, the internet knows this, but I've never studied economics.
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I don't know much about economics, but I'm curious as to why this happens, okay?
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Why is it that bubbles pop, how does, um, how do economies rise and fall, okay?
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So I'm not an expert, I'm not even a professor.
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Yes, I understand, but what I do is I engage in speculation.
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For fun, for entertainment, okay?
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So just see this as a fun class where we're going to explore some fun topics.
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That have no scholarly basis, okay?
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All right, so just keep this in mind, guys.
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All right, so let's look at very quickly the main explanation for why booms and busts happens.
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And this is from, uh, Andrew Ross Sorkin, who is probably the most influential financial journalist in America.
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And he wrote a book called 1929, which looks at the stock market collapse of 1929.
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And he offers a very good explanation as to why it happened.
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Okay?
Speaker B
Of course.
Speaker A
Amber, could you read for me, please?
Speaker B
Of course.
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Lengthy, uninterrupted booms, like the one in the 1920s, produce a collective delusion.
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Optimism becomes a drug, or a religion, or some combination of both, people lose their ability to calculate risk and distinguish between good ideas and bad ones.
Speaker A
Okay, so again, this is the standard explanation for why there's a bubble burst.
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Because it's delusional, and then it's like you fly too high.
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Okay, but you're not supposed to fly, so then you fall down to the ground eventually.
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It's just gravity, okay?
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The idea of gravity, but I want to, what I want to show you today is,
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there's actually another explanation, which is this is all being engineered.
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There are people behind the scenes who have the power to cause economies to rise and to fall.
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Okay, so let me give you an example of this.
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All right, let's just say you're a bank.
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You're a bank, and your job is to take those money,
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save it, and then use it properly in order to, um, promote the economy.
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Okay?
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So let's just say we put a million dollars into the bank.
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Okay?
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What does the bank do with it?
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The bank then lends it out to entrepreneurs, right?
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So maybe I want to start a restaurant, and so I borrow a million dollars from the bank.
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Okay?
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Question, how much money is the bank now?
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It should be zero, right?
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Okay, that's that's math, guys.
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Look, if I take a million dollars and I lend it out a million dollars,
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I should have zero because that's just basic math.
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But that's not the answer.
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The actual answer is two million dollars.
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And what you need to understand is that each bank has the ability to print its own money.
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And the bank is the mechanism for liquidity in the economy, okay?
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And this is the great illusion, the this is the delusion, okay?
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Um, behind the economy where money is just a is just an idea.
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It's a concept, it's a collective hallucination.
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All right?
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Um, now, but the problem is, there are thousands, tens of thousands of banks everywhere.
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So how do they know how to coordinate together?
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Okay, and this is something else you need to understand about the system.
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There's actually something called a signaling mechanism.
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Okay, um, so all these banks are separate, but they are linked together into something called a central bank.
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Okay?
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A central bank.
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And what does the central bank do?
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The central bank signals whether or not to lend money or not to lend money.
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And it's in this mechanism that's called the interest rate.
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Okay?
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Now, again, if you study economics, what they will teach you is that depending on the interest rate,
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if it's low, maybe 1% or 5% or high 5%,
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then that will determine how consumers behave.
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If the interest rate is 1%, well, this means is I can go to the bank,
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get money and buy a house, right?
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If it's too high, 5%, then I don't want to go to the bank to buy a house.
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And this is what you're taught in economics class.
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But there's actually another explanation.
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Which is the interest rate is not to signal consumers or homeowners to buy,
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but rather for banks to lend or not.
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Okay?
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Doesn't make sense?
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Okay.
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Because the banks, what they can do is depending on the interest rate,
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they know that, okay, my job is to release more liquidity into the system.
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Release more money into the system, and therefore I will make it easier to take out a loan.
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Okay?
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But if the interest rate is high, then I know, okay, I must not release too much liquidity into the system.
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Therefore, I will make the loan application hard.
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Okay?
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So, in other words, okay, the interest rate is not, it is not set in order to guide consumer behavior.
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It is set in order to coordinate liquidity in the marketplace.
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Okay?
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Doesn't make sense?
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Okay.
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So these are two very curious aspects of this system that people don't really understand.
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So, in order to understand the system, I will explain to you how the world works.
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Okay, I explained this before, but I want to summarize and apply it to this scenario.
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Okay?
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So the first thing to understand is that we live in Plato's cave.
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Okay, meaning that we're all chained to the floor,
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and we're all watching a screen.
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And behind is this great fire where the elite create, uh, puppets.
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For so that we can collectively hallucinate our own reality.
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All right?
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And this mechanism that allows us to coordinate our imagination,
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is of course called money.
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All right, so think of money as God.
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Right, and so what money is doing is it's focusing our minds in a certain way that creates our reality.
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All right?
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So because of this concept, this allows us to create the world that we live in today.
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Okay?
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So remember how the world is structured.
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Um, you have the empire.
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But then you have the game masters.
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Who are the game masters?
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They're the people in finance.
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Okay, and this includes Bank of International Settlements, uh, World Bank, uh, International Monetary Fund,
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uh, Wall Street, City of London, okay?
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These are different financial organizations that coordinate together.
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And they are the game masters.
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And what they do is they control how US dollars, which is the currency of this game,
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they control how US dollars moves around the system.
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Okay?
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So USD.
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And this creates, of course, the global economy.
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But you cannot allow people to think that they're actually a set of people manipulating this game.
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Because then people will think this is not fair.
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It's not transparent.
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Right, and it's and it's not a clean game.
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So what you do is you create multilateral organizations called the rules based international order.
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Like the WTO, UN, and you make them believe that, oh, it's these impartial organizations that actually control the game.
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So it's fair and it's transparent.
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And it's accountable to the people.
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Okay, and then you reinforce this using media, um, education and culture.
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And together these three will, um, create the values and norms.
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That make us believe that this is a fair, open and transparent game in which we can all win.
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Okay, so that when there's a collapse, it's not because there are people engineering this collapse behind the scenes.
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It's because it's a law of gravity.
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This this happens naturally in this game.
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It's no one's fault.
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It's just like we were too lazy and corrupt.
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Okay?
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All right, so certain things to remember about the system is that,
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this system is not as clean as you think.
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Because there are opposing forces to it.
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All right, and these opposing forces are such forces such as nationalism.
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Okay?
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Or ethnic identity.
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Then you have social democracy.
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Individual rights, right?
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And then, of course, you have religion.
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All right, so there are these countervailing forces that try to break apart the system.
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So then what happens is that there are other, um, systems.
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That keep this system in place and respond to these countervailing forces.
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All right?
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And they are intelligence, spies, basically.
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Crime and science.
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And behind these three forces are three sets of powerful institutions.
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Okay?
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These are transnational capital.
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Um, secret societies.
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And the last is elite families.
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Okay, some people call them the Illuminati.
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Okay, doesn't matter.
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All right?
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So this is how the world works.
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And underpinning this elite is something called the occult, which we'll study later on.
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Okay?
Topics:economic collapseboom bust cyclecentral bankinterest ratesfinancial elitesglobal economymoney creationPlato's cavegame theoryinternational order
