From Forever Wars to AI: The New Elite Wealth Extraction Model | Simon Dixon PT 1

SPEAKER_1 (0:00)

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Tom Bilyeu (0:30)

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Simon Dixon (1:39)

I'm so glad to be back.

Tom Bilyeu (1:41)

Brother, every time I research you, it is a rabbit hole that really pulls me in a direction of making sense of some of the things you can feel, but can't quite put your hands around. You've said that the global elite have used the forever war model as a way to extract wealth, but that's shifting now to AI.

What on earth makes AI the better wealth extraction model?

Simon Dixon (2:05)

Well, so in our last thing, we talked about these three complexes. The main one, FIC, Financial Industrial Complex. Underneath that, a bunch of public companies, the Military Industrial Complex and the Technical Industrial Complex. Now, they're kind of all merging into one. Because if you think about how COVA operations under the Military Industrial Complex used to work, there was an element of proximity and nationalism to the MIC associated with the country. The MIC has historically been very nationalistic because it's physical location, it's a manufacturing base.

But now we're going fully technical. And so the one feature of what's been happening across all these war zones around the world for at least the last decade or so, particularly accelerated with the Russian-Ukraine War, is that they're becoming technology. Artificial intelligence has been beta tested in all these war zones and it's being rolled out more and more and more. The wealth extraction exercise that we're seeing right now is if you think about it, what is the current environment since the closure of the Strait of Hormuz? Right now, we've got very high energy prices. We've got oil prices. We've got a diesel shortage, which is the fuel important for the whole jet fuel industry, as well as the trucking industry and the fabric of what keeps prices reasonable in terms of the cost. The technical side, a lot of this energy is obviously one of the key inputs for these artificial intelligence data centers.

The key feature of the FIC is that those are the closest to the money printer that we talked about in our last episode that get to create the money. They get to acquire assets at cheaper rates and they get to create the money for free in order to collateralize and purchase these assets. The reason that we're now hitting the stage where approximately, I think the latest data said 88% of the stock market is controlled or owned by 10% of households and 50% of the stock market value is owned by the 1% of those 10% is because whenever the value of these assets are going up while people are simultaneously being burdened with debt, think about the two trends. We've got the interest rates have been going up as a result of oil prices going up. So you've got oil prices going up. That means that the FIC, which is all the bondholders, as well as the Fed, and so the Fed controls those short-term interest rates, and bondholders are the ones that demand what interest rate you need to pay in say, like the 20-year auction, the 10-year auction, the 30-year auctions of government debt. Both of those are pushing rates up. So we had the Fed come out.