The Most Important Personal Finance Insights you may ever Benefit From!
TLDRThe video transcript discusses the alarming state of global personal finance, highlighting how securities, including stocks, bank balances, and debts, have been connected to the world derivatives market since 2016, serving as collateral. The speaker, referencing David Rogers, warns of an impending financial crisis and the 'Great Taking' by top banks and the Bank of International Settlements, which could lead to the confiscation of financial assets. The summary emphasizes the shift from property ownership to security entitlement, the vulnerability of investors, and the concentration of wealth and power in the hands of a few. It also touches on the importance of physical assets like gold and land as safe havens and the potential for a global financial panic that could lead to a massive transfer of wealth to the top banks. The speaker calls for awareness and action to prevent this scenario.
Takeaways
- ๐ Global changes in property rights: As of 2016, securities held in book-entry form have no property rights in any jurisdiction globally, meaning ownership of stocks and bonds is heavily integrated with the world derivatives market.
- ๐ Collateralization of assets: All forms of financial assets, including stocks, bonds, and bank deposits, are now used as collateral in the derivatives market, exposing them to higher risks.
- ๐ The Great Taking: The script describes 'The Great Taking' as a long-planned shift in the financial world, where secured creditors, primarily big banks and central banks, could end up owning a significant portion of financial assets in case of market collapse.
- ๐ณ Electronic ownership: The shift from paper certificates to electronic records in the '60s has led to a lack of direct ownership, with all securities now held in pooled accounts controlled by financial intermediaries.
- ๐ซ Loss of individual property rights: New legal structures ensure that securities owners have only 'security entitlements' rather than direct ownership, meaning they cannot reclaim their securities if their intermediary goes insolvent.
- ๐ International implications: The changes in securities ownership and collateralization have been adopted globally, including in the European Union, influenced by U.S. regulations and the demands of the derivatives market.
- ๐ Legal ramifications: Recent legal adjustments make it difficult, if not impossible, for securities holders to claim ownership, prioritize secured creditors (major financial institutions) in the event of a financial crisis.
- ๐ Risk to personal wealth: Individuals, including high net worth individuals, are at risk of losing their investments and savings if financial intermediaries they use face insolvency or legal challenges.
- ๐ Increased transparency and awareness needed: The script emphasizes the need for greater awareness and potential legal challenges to these changes, suggesting that public knowledge could prevent or mitigate some of the risks posed by these structural financial changes.
- ๐ฆ Central banks' role: Central banks, described as privately owned and operating beyond government oversight since their inception, have played a significant role in these changes, aiming to consolidate power and control over the financial system.
Q & A
What is the significance of the year 2016 in the context of global securities and bank balances?
-Since 2016, all securities held in book entry form, including stocks and shares owned through a broker and bank balances, have been connected to the world derivatives market and are used as collateral. This means that property rights to these securities no longer exist in the traditional sense.
What is the 'Great Taking' and how does it relate to the current financial system?
-The 'Great Taking' refers to the systematic process by which top banks and the Bank of International Settlements have secured control over financial assets, deposits, stocks, bonds, and anything linked to debt. It is seen as the endgame of a long cycle of debt and is connected to the concept of the 'Great Reset', which involves a concentration of wealth and power in the hands of a few.
How has the concept of ownership changed with the advent of electronic securities?
-With the dematerialization of securities, ownership has been replaced with a security entitlement. This means that investors no longer have direct ownership of their securities but rather a contractual claim to a share of the assets held by an intermediary, such as a broker.
What role did the Central Intelligence Agency (CIA) play in the establishment of the current securities system?
-The CIA was assigned to the mission of establishing a legal infrastructure that would enable the 'Great Taking'. William Denton, a career CIA operative, was appointed New York State superintendent of banks and played a key role in the creation of the Depository Trust Company (DTC), which became a model for central securities depositories and clearing corporations.
What is the importance of the velocity of money in predicting economic crashes?
-The velocity of money, which is the GDP divided by the money supply, is a key economic indicator. When the velocity of money is low, it can predict an impending major crash. In 2020, the velocity of money was at its lowest point since the Great Depression, signaling potential financial turbulence.
How does the current legal structure affect the rights of investors in the event of a broker's insolvency?
-In the event of a broker's insolvency, the legal structure ensures that secured creditors, such as large banks, have priority over the financial assets. Investors, who are now considered entitlement holders rather than owners, may only receive a pro rata share of the assets if there's a problem, and revindication of securities is prohibited.
What is the impact of the European Commission's legal certainty group on the ownership of securities in Europe?
-The legal certainty group, under the influence of the US, established that securities in Europe are held in pooled form, and investors have a pro rata share in the interests of their asset held by the intermediary, such as a broker. This means that even if investors believe their securities are segregated, they are not legally, and they are vulnerable to the insolvency of the intermediary.
Why is physical gold considered a safe haven in the current financial climate?
-Physical gold is considered a safe haven because it is not part of the derivatives complex and is not used as collateral. It is seen as a store of value outside the traditional financial system, which is why some investors are moving towards holding physical gold as a hedge against potential financial instability.
What is the significance of the central banks' move to classify gold as a class one asset?
-The reclassification of gold as a class one asset by central banks signifies a shift in the perception of gold as a highly valuable and secure asset. It is now ranked alongside US sovereign debt in terms of liquidity and asset quality, indicating a potential return to gold's historical role in supporting currency and monetary policy.
How does the speaker suggest individuals can protect their wealth in light of the 'Great Taking'?
-The speaker suggests that individuals, particularly high net worth individuals, should become aware of the 'Great Taking' and its implications. They should consider holding physical assets like gold and land with clear ownership deeds, as these are outside the scope of the derivatives market and collateralization.
What is the potential outcome if the 'Great Taking' is fully executed during a major financial crisis?
-If the 'Great Taking' is executed during a major financial crisis, it could lead to a massive shift of wealth and assets to the secured creditors, primarily large banks and financial institutions. This could result in a significant loss of value for the original owners of the securities and potentially trigger social and economic upheaval.
Outlines
๐ Global Derivatives Market and Property Rights
This paragraph discusses the shift in property rights for securities held in book entry form globally since 2016. It explains that stocks, shares, bank balances, and forms of debt are now connected to the world derivatives market and used as collateral. The speaker emphasizes the importance of understanding this change and mentions David Rogers' talk, 'The Great Take,' which highlights the implications of this shift on financial assets and the potential for wealth confiscation by a few powerful entities.
๐ Dematerialization and Security Entitlement
The speaker delves into the process of dematerialization, where paper certificates representing ownership of stocks were replaced with electronic records, and the concept of security entitlement, which replaced property rights with contractual claims on a share of assets. The paragraph explains that all securities are now held in unsegregated pooled form, and even if individuals believe their assets are segregated, they are legally part of a larger pool. The speaker also discusses the role of the CIA and William Denson in this process, and the implications for individuals and the financial system as a whole.
๐ก Legal Structures and Secured Creditors
This section focuses on the legal structures that have been put in place to protect the interests of secured creditors, such as large banks, in the event of an insolvency. The speaker explains that these legal frameworks, including the central securities depository (CSD) and CCP, ensure that the top-level banks have priority over assets in the case of a market implosion. The paragraph also touches on the European Union's adoption of similar legal structures, and the lack of awareness among the general public and even finance professionals about these systems.
๐ธ๐ช Sweden and Finland's Unique Situation
The speaker discusses the unique legal situation in Sweden and Finland, which initially had traditional legal arrangements that allowed citizens to own their securities outright. However, due to pressure from the European Commission and the need for legal certainty in ownership, these countries were forced to change their laws to align with the rest of Europe. The speaker describes how Euroclear, a Belgian legal construct, was used to circumvent Swedish law and buy out their asset ownership model, effectively ending their status as an 'oasis' of traditional ownership.
๐ฆ The Role of Central Banks and the Future of Gold
The paragraph explores the role of central banks in the current financial system, particularly their move to elevate gold to a class one asset alongside US sovereign debt. The speaker suggests that this could be a step towards gold remonetization, marking a return to using gold as a basis for currency. The speaker also discusses the importance of holding physical gold as a safe haven asset, as central banks continue to buy up gold and other countries move away from US debt due to geopolitical concerns.
๐ Geopolitical Shifts and the Importance of Physical Assets
In the final paragraph, the speaker discusses the geopolitical shifts that are leading to a greater focus on physical assets such as gold, silver, and land. He mentions the BRICS countries' accumulation of physical gold and the potential for a resources super cycle. The speaker also provides advice on investing in real energy sources like oil, gas, and coal, and emphasizes the importance of being aware of the financial system's vulnerabilities and taking steps to protect one's assets.
Mindmap
Keywords
๐กBook Entry Form
๐กDerivatives Market
๐กSecurity Entitlement
๐กCentral Banks
๐กVelocity of Money
๐กDematerialization
๐กThe Great Reset
๐กPhysical Gold
๐กSecured Creditors
๐กLegal Certainty
๐กRevindication
Highlights
All securities held in book entry form globally since 2016 are connected to the world derivatives market and used as collateral.
The Great Taking refers to the endgame of a long cycle of debt and the preparation for financial turbulence.
Top banks and the Bank of International Settlements have secured creditors that will control financial assets in the event of a derivatives market implosion.
The rule of ownership has been replaced with a security entitlement, turning property owners into contractual claimants.
All securities are held in unsegregated pooled form, legally undermining individual property rights.
The Great Reset is closely related to the financial concentration of wealth and power in the hands of a few.
The private ownership of central banks, starting with the Federal Reserve in 1913, has led to a significant concentration of power.
The velocity of money is at its lowest point since the Great Depression, signaling potential financial instability.
Dematerialization of stocks and the legal ownership shift were essential steps in the Great Taking process.
The CIA was involved in the mission to change the legal landscape of securities ownership, starting in the 1960s.
Central Securities Depository (CSD) and Central Counterparty (CCP) are legal structures enabling the Great Taking.
The European Commission's legal certainty group has harmonized laws to match the US model, affecting ownership rights.
Sweden and Finland were the last to hold out against the new legal structures but were eventually integrated via Euroclear.
Physical gold and land with deeds are suggested as safe havens outside the controlled financial system.
The potential for a future where all physical assets are tokenized and controlled within a digital system is a concern.
Central banks have been upgrading the classification of gold, hinting at its remonetization and importance in global monetary policy.
The speaker advocates for awareness and pushback against the financial structures that could lead to wealth confiscation in a crisis.