The Most Important Personal Finance Insights you may ever Benefit From!
TLDRThe video transcript discusses the alarming shift in global financial systems, where all securities, including stocks, shares, and bank balances, are now connected to the world derivatives market and used as collateral. This change, facilitated by central banks and the Bank for International Settlements, has led to a situation where the ownership of securities is no longer held by individuals but by a small group of secured creditors, primarily large banks. The speaker, David Rogers, warns of an impending financial crisis and the potential for wealth confiscation by these entities. He emphasizes the importance of physical assets like gold and land as safe havens and calls for awareness and action to prevent this system from causing widespread financial harm.
Takeaways
- 📈 **Derivatives Market and Collateral**: Since 2016, all securities held in book entry form globally are connected to the world derivatives market and used as collateral.
- 🏦 **Central Banks and Private Ownership**: Central banks, like the Federal Reserve and the Bank of England, are privately owned and have concentrated power over a century.
- 💡 **Velocity of Money**: A low velocity of money, as seen in 2020, can predict an impending major crash, similar to the Great Depression.
- 🚫 **Dematerialization**: Paper certificates of stocks have been eliminated, making all securities electronic, which aids in the confiscation process during a financial crisis.
- 🤝 **Security Entitlement**: Legal ownership of securities has been replaced with a security entitlement, which is a contractual claim rather than actual ownership.
- 💔 **Loss of Property Rights**: The public no longer has property rights to securities held in book entry form, which are now pooled assets for the derivatives market.
- 🌐 **Global Impact**: The changes in financial laws have been globally implemented, affecting all jurisdictions and investors, including the super-rich.
- 📉 **Financial Turbulence**: The speaker predicts serious financial turbulence due to the current structure of the financial system and the concentration of wealth and power.
- 🏛️ **Legal Infrastructure**: The legal infrastructure is in place to protect the interests of secured creditors, which are typically large banks, at the expense of individual investors.
- 🔐 **Physical Assets as Safe Haven**: Physical assets like gold and land are suggested as safe havens outside the controlled financial system.
- 🌟 **Gold's Resurgence**: Gold has been moved to a class one asset by central banks, indicating its importance and potential return as a support for currency.
Q & A
What is the current status of property rights for securities held in book entry form globally?
-Since 2016, all securities held in book entry form, including stocks and shares owned through brokers, bank balances, and forms of debt, are connected to the world derivatives market and used as collateral. This means that traditional property rights no longer apply to these assets.
What is the significance of the 'Great Taking' in the context of the financial system?
-The 'Great Taking' refers to the systematic shift in financial assets where the ownership of securities, including stocks, bonds, and bank deposits, is transformed into a security entitlement. This means that individuals no longer have outright ownership but rather a contractual claim on a portion of what they used to own, which is held in unsegregated pooled form.
How does the concept of 'velocity of money' relate to economic stability?
-Velocity of money is a measure of the rate at which money circulates through the economy, calculated by dividing the GDP by the money supply. A low velocity of money can predict an impending major crash, as it indicates that money is not circulating effectively. In 2020, the velocity of money was at its lowest point since the Great Depression, signaling potential economic turbulence.
What role does the private ownership of central banks play in the current financial structure?
-Private ownership of central banks, such as the Federal Reserve and the Bank of England, has led to a concentration of power and control over political parties, governments, and intelligence agencies. This private control has been used to implement legal structures that benefit a small group of secured creditors at the potential expense of the broader population.
Why was the dematerialization of securities necessary for the 'Great Taking'?
-Dematerialization, the process of converting physical certificates of stocks into electronic form, was necessary to facilitate the shift from ownership to security entitlement. This allowed all securities to be connected to the world derivatives market and used as collateral, which is a key part of the 'Great Taking'.
How does the current legal structure affect high net worth individuals and their assets?
-High net worth individuals are affected by the shift to security entitlement just like anyone else. Even if they believe they have segregated their assets, legally they are part of the pooled assets used to secure the derivatives market. If a broker or financial intermediary goes insolvent, these individuals may only receive a pro-rata share of their assets, significantly diminishing their wealth.
What is the role of physical gold in the current financial landscape?
-Physical gold is considered a safe haven asset that is not directly affected by the legal structures governing securities. It is not used as collateral in the derivatives market and thus retains its value independently of the financial system's instabilities. However, there is a concern that in a future crisis, there may be attempts to tokenize and control physical assets, including gold.
What steps were taken to ensure legal certainty for secured creditors in the derivatives market?
-Legal certainty for secured creditors was established through a series of legal reforms and structures such as the central securities depository (CSD) and the central counterparty (CCP). These structures ensure that in the event of a market implosion, secured creditors, typically large banks, have priority over the assets.
How does the European Union's legal framework relate to the 'Great Taking'?
-The European Union, under the influence of the US, established legal frameworks that mirror the US's approach to securities ownership. This includes the use of pooled securities and the concept of security entitlement, which aligns with the 'Great Taking' and benefits secured creditors at the expense of individual investors.
What is the potential outcome for individuals if the derivatives market collapses?
-In the event of a derivatives market collapse, the legal infrastructure in place could allow for a confiscation of assets by secured creditors. Individuals, even those with significant wealth, could find themselves with greatly diminished assets, as they would only be entitled to a pro-rata share of what they previously owned outright.
What actions can individuals take to protect themselves from the implications of the 'Great Taking'?
-Individuals can take steps to move their assets into physical forms such as land with deeds and physical gold. This is because these assets are not typically subject to the same legal structures as securities and are less vulnerable to confiscation in the event of a financial collapse.
Outlines
📈 The Great Taking: Global Securities and Derivatives Market
This paragraph discusses the interconnectedness of global financial assets, including stocks, bank balances, and debts, with the world derivatives market post-2016. It emphasizes the lack of property rights for securities held in book entry form and their use as collateral. The speaker, David Rogers, highlights the importance of understanding these financial mechanisms, which he suggests are part of a long cycle of debt leading to potential financial turbulence. He also connects these issues with the concept of the 'Great Reset' and the concentration of wealth and power in the hands of a few.
💼 The Legal Framework of Collateralization and Ownership
The speaker delves into the legal aspects of securities and collateral, explaining how the traditional ownership of securities has been replaced by a security entitlement. He discusses how all securities are held in unsegregated pooled form, even when clients believe they have segregated assets. The paragraph also touches on the history of these legal changes, initiated 50 years ago with the involvement of the CIA and key figures like William Denson. The speaker warns that this structure could lead to confiscation of assets by a small group of powerful creditors in the event of a major crash.
🇪🇺 The European Union's Role in the Global Financial Structure
This section explores how the European Union has been integrated into the global financial system, with a focus on the legal certainty group's efforts to address ownership issues. The speaker mentions the influence of the US on European legal structures, particularly regarding the pooling of securities. He also discusses the protections in place for secured creditors, such as large banks, which could lead to them having priority over individual investors in the event of insolvency.
💡 Shortfalls and the Implications of Insolvency
The paragraph addresses the issue of shortfalls in securities and how they are treated under the current legal framework. It explains that regardless of the fault or negligence of the intermediary, the entitlement owner (formerly the owner) only has a pro rata share. The speaker suggests that this system is designed to protect the interests of powerful creditors, even at the expense of individual investors, and that it could lead to a massive transfer of wealth in the event of a widespread insolvency.
🌐 The Global Push for Collateral and the Ant Farm Model
The speaker discusses the global demand for collateral by market participants, particularly the banking system and the derivatives market. He suggests that the legal changes were driven by this demand and that they serve to benefit a small group of individuals at the top of the financial hierarchy. The paragraph also touches on the potential for a future where all physical assets are tokenized and integrated into a new digital system, which could further consolidate power and control.
🤝 Central Banks and the Remonetization of Gold
In this paragraph, the speaker talks about the role of central banks in the financial system and the recent upclassification of gold as a class one asset. He suggests that gold is being recognized as a safe haven asset in times of crisis and that central banks around the world are buying up physical gold. The speaker also discusses the potential for a shift away from fiat currencies to gold-backed currencies, citing the actions of countries like Russia and China, which are increasing their gold reserves.
🏦 The Banking System and the Future of Financial Investments
The final paragraph focuses on the state of the banking system and the potential strategies for investors in the face of a possible financial crash. The speaker suggests that while those 'in the know' may be able to protect their assets by moving into physical assets like gold, the average person may not be aware of the risks. He also discusses the importance of having a diversified portfolio that includes natural resources and physical commodities, as well as the potential for a shift towards energy companies that focus on traditional resources like oil, gas, and coal.
Mindmap
Keywords
💡Derivatives Market
💡Dematerialization
💡Security Entitlement
💡The Great Reset
💡Velocity of Money
💡Central Banks
💡Unsegregated Pooled Form
💡Physical Gold
💡Revindication
💡Bank of International Settlements (BIS)
💡Hedging
Highlights
Since 2016, all securities held in book entry form globally are connected to the world derivatives market and used as collateral.
The ownership of stocks, bank balances, and forms of debt are now under the control of the top banks and the Bank of International Settlements.
The 'Great Taking' involves the confiscation of financial assets, including stocks, bonds, and bank deposits, in the event of a derivatives market implosion.
The shift from property rights to security entitlements means that investors only have a contractual claim to a portion of what they previously owned outright.
All securities are held in unsegregated pooled form, even when investors believe they have segregated assets.
The legal infrastructure for the 'Great Taking' has been in development for over 50 years, initiated by a small group with significant influence.
The dematerialization of stocks and the removal of paper certificates was a crucial first step in the 'Great Taking' process.
The velocity of money is at its lowest point since the Great Depression, indicating a potential major crash.
Awareness and pushback from the public, especially high net worth individuals, could potentially halt the 'Great Taking'.
Physical gold and land with deeds are suggested as the only ways to opt-out of the system and protect assets.
The European Commission has harmonized laws to match the US legal framework, ensuring all securities are held in the same manner.
Central banks globally are upgrading gold to a class one asset, indicating a potential remonetization of gold.
The potential for a digital currency system that tokenizes physical assets, converting them into digital assets controlled by the banking system.
The importance of holding physical assets like gold as a safeguard against the instability of paper assets and digital currencies.
The central banks' actions, such as the reclassification of gold and the potential for a new financial system, signal a shift towards tangible assets.
The rise of central bank digital currencies (CBDCs) could be a part of the 'Great Taking', offering control over financial assets.
The potential for a global financial panic leading to the implementation of the 'Great Taking' and the centralization of wealth.