From Forever Wars to AI: The New Elite Wealth Extraction Model | Simon Dixon PT 2

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Tom Bilyeu (1:01)

Welcome back to part two of this incredible conversation. Without further ado, here we go.

When I look at the rate that we're bringing on debt, to me, this is unsustainable. You have a mathematical crisis racing towards you, barring massive amounts of inflation, which is what I think they're actually going to do. Because without that, you do hit a wall where you're, every tax dollar you take just goes to interest payments. So they obviously won't let that happen. You've talked about the need for a theatrical crisis to justify that level of inflation. Is that what's coming? Like what is the next phase? This feels like such a period of change. Am I crazy or are we really about to do something dramatic?

Simon Dixon (1:47)

No, I think what we're experiencing today is the biggest amount of change that we'll ever experience in our lifetime.

Tom Bilyeu (1:52)

Is that just the technology of AI though, or is it the way that we interface with our money?

Simon Dixon (1:59)

Historically, we're used to a dominant empire that controls one currency.

There's dominant. There's a dominant MIC, there's a dominant FIC, and there's a dominant, historically. Think of it in, to summarize that whole conversation, you have the FIC and they have two tools. One is MIC, one is TIC. TIC is the Neo Control Grid. The MIC is, go get me some oil from Venezuela. And we can use, go get me that country and subordinate that country. That's the two tools that they have. They have a lot more, but these are the predominant tools. Really, if you think about it, what have we been used to in our lifetime, starting with the boomers? We had a Soviet Union that represented the whole communist ideology. We had America and Europe that represented old capitalism and neo-capitalism.

The Europeans were blowing each other up, and all the governments were in debt, subordinated to the FIC. The city of London was managing all the currency wars and all of those operations. Transition to the Fed, we had this more decentralized model that kind of evolved over time, left the gold standard 71, then petrodollar, and so it wasn't until in 91 with the fall of the Soviet Union, we had the hegemonic power, and there was no gold standard. We had a petrodollar that was rolling over a lot of the debt by having oil priced in dollars, and then them investing those dollars in US government debt.

And that became the backbone of the entire banking system. Then we had a series of bubbles that we blew up. We had the dot-com boom and bust. We had the savings alone crisis before that. We had the, every one of those led to a socialized losses privatized gains event. The government was on the hook.

The money came to the banks and the FIC, and they became more powerful than everyone. 2008 was when BlackRock gained its superpowers.

Tom Bilyeu (4:10)

They become more powerful through centralization. More players die, and then fewer players.

Simon Dixon (4:16)

They gain power through centralization, but crisis is how you get those peak centralizing events.

Tom Bilyeu (4:21)

But the actual thing that centralizes is other players die off, and the players that live are stronger because there's less competition.

Simon Dixon (4:29)

Mergers and acquisitions and access to the government's bailout money. Those are the two mechanisms.

Other companies go bust that don't have access to the socialized losses. You get to buy them, and you also get the capital from the government. That's the centralizing force, and every crisis creates a new one of those. I would say that after the petrodollar, after the removal of the gold standard, then the game was just about rolling over debt, then you had the fall of the Soviet Union, then you had the global hegemon, and then it was just about how long can you roll over, and how liquid can you make these treasury markets, and use the mick in order to force everyone to buy these treasuries.