#210 - Simon Dixon - "They're Coming For Everything": $40T Debt, AI Job Collapse & The CBDC Grid

Simon Dixon (0:00)

I think there will be rapid loss of jobs. There's no chance that we're going to make up with new opportunities for the amount of jobs that are going to be lost here. It's the middle class pinch. It's really starting to happen. Just the bloody pub over the road from me.

Four of us go for dinner. This is a pub. It's 200 pounds. They do have a plan for those that own the debt. And that is that they are going to create the technology, the stable coins and the central bank digital currencies that can either be issued through financial crisis as a bailout. And that is the programmable money of artificial intelligence that requires data and social credit scores. If you want to not be the you will own nothing and be happy, you need to own something, which is a key. The optimistic version is to be the asset owner, to be building with AI, to be on the other side of the trade.

The vast majority will be on this side of the trade. And so that is, I believe, the choice that everyone needs to make ahead.

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It's really interesting and also watching the intersection between the US and the UK relationship as well, I think is really interesting. We got $40 trillion in the US. We've had the bond market breakout.

The question of, are you allowed to sell treasuries is a real question now. Explain that as a question and what that means to people who've got no idea what treasuries are and what it is. Okay. America has to roll over approximately $10 trillion a debt because when you buy a bond, it comes with a few things. It comes with a maturity date and if you hold it through to maturity, you get all your money back and you're meant to get a yield on top and whatever they pay. Like a five percent, four percent, whatever. Five percent, yeah.

As people sell their bonds or their treasuries, the price of their bonds or treasuries go down and therefore, you have to pay a higher yield in order to try and persuade someone to buy a new bond.

If you're in a secondary market and you got bonds and you're saying, well, I got a 10-year bond and I want to sell it within two years, then people are, if the rates, if the yields going up, then people are less, you have to pay, the government has to pay more in order to borrow, and then your bond is worth less because it's got a lower interest rate that gets paid on it. It's worth less if you want to sell it. Yeah. It's worth less if you want to sell it. Sometimes in their extremes, this is what led to the collapse of Silicon Valley Bank. When a bank is trying to have a mismatch between people want to withdraw money and they've got these bonds, and those bonds, they need to sell in distress in order to meet withdrawal demand. That's how you ended up with the collapse of Silicon Valley Bank, as them having to sell it and they didn't have enough, and so they needed intervention, and so the Fed can basically decide, is this bank going to stay or die, we'll kill it.

If you remember, that was interesting because that happened. I was on an X space with Peter Till when he was telling everyone on the space, I've withdrawn my money from Silicon Valley Bank, everyone get your money out, and literally crashed it, and he just got his bank approved, which is a stablecoin programmable money bank, which was fast-tracked through the Genius Act and the Trump administration. After killing Silicon Valley Bank, he got his programmable money bank. Sounds a little bit suspicious. Yeah, sounds a little bit suspicious.

But anyway, we're at the stage where US effectively has to roll over approximately $9.7 trillion of debt. When? That's due by the end of this year. That's why we're getting so much stress here. 25%? Yeah.