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Well, the banks are doing something very different which is called, you know, fractional reserve lending. So, they're actually lending out customer deposits without their permission essentially, right? To, you know, earn the spread. And that's what the whole banking, that's why there's such heavy oversight from banking.
Different than what you're planning on doing with customers. Well, under Yeah. So, under Genius, um, stable coin issuers have to hold 100% reserve. It's not fraction reserve. 100% of the assets are in short-term US treasuries. It's very low risk. It's less risky. I I had a uh lunch today with a very prominent former finance miner, central bank, very prominent guy, and he wrote a big paper on tokenization,
right? And he he would say he couldn't sit in his former role, but he would say it today as a private citizen. The banking system is is being left behind in so many ways through technology. So, I'm going to Damon. I believe it'll be very successful. The trip to the country never done better. We have $18 trillion plus coming in.
We've never had anything like it and no country has had anything like it. Prices are way down. Gasoline now is $1.99 in a lot of places. And frankly, uh, nobody's seen anything like this. So, it's really good. But this will be an interesting trip. I have no idea what's going to happen, but you are well represented.
Thank you very much. [clears throat] Again, I would say this is the same kind of hysteria that we heard on April 2nd. Uh there was a panic and what I'm urging everyone here to do is sit back, take a deep breath, and let things play out. As I said on April 2nd, the worst thing countries can do is escalate against the United States.
Monetary order is breaking down. Okay. What I mean by the monetary order is that fiat currencies as an and debt as a storehold of wealth is not being uh held by central banks in the same way and that there was a change. The biggest market to move last year was the gold market. Far better than the tech markets and so and so on.
And and believe me, the Greenland story is fun for the press. But the real story, you're absolutely right, is what's going on with that. Six standard deviation move and 10-year Japanese yields in two trading sessions. I'm going to go really quickly here. All right, let's look at an August chart of our 2-year.
And notice we're still in the trading range. short maturities hardly have had a move. They're unchanged. Now look at the 10ear from the same date. It's breaking out. But even though it is breaking out, it's not breaking out in a huge way. It's basically breaking out. Well, the highest yield closure should stay here since the second third week in August.
Now there's the February 99 chart that Sully was referring to on the Japanese government bond. It has been going up up and away. And if you look at the foreign exchange side, here's the euroyen. Uh it continues to go up almost on a daily basis as well. Uh the euro is at the highest level since 1991.
If you look at the dollar yen, we're not at fresh highs, but we are hovering right around the highest uh uh level on the yen since July of 24. And so I agree with both of them. I thought the bond move was particularly interesting. Um, a couple things I thought it was somewhat reminiscent of liberation day, but we'd been through one liberation day and we saw that it was just that was the, you know, within a few days that was the peak bottom,
right? And so, you know, I think people are more sort of tempered now. There was an interesting interview Sarah did with Secretary Lutnik where he seemed to say we're not we're, you know, we're the trade deals is as it is. It's not changing. He sort of made it sound like we're not breaking up. We're just we're, you know, we're just in a fight, right?
That's how it sounded to me. The other thing that I found really interesting was the lack of move in the VIX, right? This wasn't we got nowhere remotely close to a panic territory at all. So maybe that's coming. Got a couple days. Yeah. Yeah. Yeah. Welcome to the crypto teacher. And guys, please like and subscribe if you do like what you're listening to.
And make sure you join the Patreons. If you're not a part of the Patreons, make sure you're hitting the cash app. And this is just a quick video. You know, King has practiced today and I'll have that Patreon video back out tomorrow. Now, we have Brian Armstrong at Davos and we know these digital currency stable coins are the foundation of this new digital economy and he sticks to the talking points.
talking about fractional reserve lended and yes they don't have to worry about that anymore cuz they've already bought up the globe and then plus once everything gets tokenized and put on blockchain absolutely nothing moves and Larry Frink has already told us that these ETFs are the gateway to tokenization and we know DeFi is definitely the new banking and we have Trump set the go to Davos post and make his speech.
So, we're going to get our popcorn lesson and decode cuz we know it's going to be an NWO speech. And we constantly had Greenland as a distraction just like tariffs have been a distraction for the fourth industrial revolution. And we have Ray Dalio again sticking to the same talking point. The monetary system is about to change.
And of course, guys, we can clearly see it. But we know the sheep could care less. But they are just a few months away. Like I stated, a few months away for the nWo to flip the switch on this fourth industrial revolution. No, it's not going to hit us at once, but over these next three years, we're going to be living in a whole another different world.
And remember the crypto teacher told you. Well, we know first they have to bring in that crisis. And we've never heard so much about Japan and the yen and the bonds ever. But we know who has been talking about it forever. That's right, the crypto teach. And I told you it was coming. Japan wasn't buying US debt for no reason.
And Japan leaders were bought to San Francisco to plan out the fourth industrial revolution. And you know, I bought it to you from the horse's mouth. And eventually, and remember the crypto teacher told you this, eventually Japan is going to have to start dumping US debt. But remember, it's a plan that moves in phases.
Trump has to devalue the dollar in order to devalue the debt. And we can clearly see why the central banks are buying up gold and silver and keep sending it to new all-time highs. It is unbelievable. But as the Fed cuts, that means all this big money, $8 trillion worth sitting in these money market accounts is going to go find higher yield and credel is going to be blamed for this legacy market falling.
is genius but a evil plan. And we're going to see the robots, algorithms, and drones. Take this economy over, pay each other with crypto, and the sheep go inside the metverse. And remember the crypto teacher told you because he knows when it comes to the NW, it's all planned out. You have a wonderful day.
Yeah, Morris, I do. And I think you have Yeah. JGB JGB yields moving higher. You did have obviously the tariff from Greenland headlines and then also you had look positioning was quite long and you had a nice kind of cyclical rally to start the year. So I think investors were were not looking to hang around once they got that kind of bad news.
But of the three we do think the global bond yields was a number one risk and and frankly I think that's been a risk that's really been in the background probably since July of last year when 30-year yields in the US, UK, uh Germany and Japan all got above 3% for the first time in history basically.
So, this has kind of been a simmering risk in the background and, you know, decided to kind of uh to rear its head this week. Yeah. I mean, it's it's hard to say anything's gone too far at this point because the the trend, you know, to guy's point earlier, the trend in the 30-year GGPs has just been, you know, very persistent.
So, you know, it's hard to see where support, you know, for that trade could be. In terms of US, I mean, you I think Karen mentioned we haven't really seen, you know, the VIX move all that much. You know, today felt like more of a a positioning positioning type selloff, right? It was tech, it was Mag 7 that underperformed and actually, you know, significantly underperfor perforerforerforerforerforerforerforerforerforerforermed IWM.
You actually had a day where small cap was up and cyclicals did okay, but it was really staples and IWM were the were the two best best performers. That's kind of why the market's reacting the way it is. Uh she's got some of the highest approval ratings. This is uh going back to Arbanomics. So you the market's pricing in a potential majority and a potential strong majority given Takayichi to go back to the policy positions that she had a year ago before she softened her views on fiscal spending and monetary policy.
That's what got her into the leadership becoming a bit more uh sort of balanced with the rest of her party. But the markets fearing the idea of fiscal spending but also leaning on the Bank of Japan to not raise interest rates. Is the Bank of Japan going to hear but not listen? Is the Bank of Japan going to do what she hopes?
Is the Bank of Japan going to be forced to raise rates? We're starting to see a little bit of a repricing here in the Bank of Japan's independent, but the market is aware that politics does play a factor into their decisions in terms of timing around elections. So, that was the main concern for uh timing the BOJ.
Now, what the market's doing is it's saying that the bank could raise rates twice or three times this year. That's kind of where commentary is going. I saw some notes from City, for example, pushing that way. April is April a live meeting for us. It's possible but it's now a little bit overegged. I think that it's still the case that the BOJ will want to raise rates every 6 months because they follow the data.
Now whilst the fiscal is a stimulative sort of move, she's cutting taxes and what that will actually mean is that inflation will mechanically come down quite sharply. Consumption tax cut on food takes off around 1 and a half% from Japanese inflation. She's also got government gasoline taxes that they scrapped in the budget that they're trying to get through as well.
We could see CPI in Japan in single digits. Most central banks wouldn't be doing a rate hike when that's the case. But they will try to look through that because that is government forced moves in the CPI. They would be trying to look at underlying inflation. The labor market is very tight in Japan which keeps us on course for saying we should have a sort of every six months a rate hike intervene.
Sometimes they do it on days where the US is closed. So we were poised to see because there's less volume in the market. you don't have to spend quite so much of your of your of your of your pot, I suppose, to to support the uh the currency. There wasn't particularly any evidence of that yesterday, was there?
So, do we still have this expectation then this week perhaps that we see intervention from the Ministry of Finance? It's anyone's call. It's only their decision really. It's a human decision at the end of the day. It's when we get to sort of 162 in then I'd start to say hang on. This is now very live as a risk.
But the market is current kind of current currently toying with the all of these moves from the BOJ is what we're seeing is large selling from domestics in terms of the way the JGB's work moved over the past 24 hours is what I would I guess is going on. Do yen's heading higher. So it's this situation we've seen in the UK before lower foreign exchange and uh sort of higher JGB yields.
In the UK's case it was guilt. When it comes to the sort of FX intervention you usually get massive moves when they come in. So is it really worth being long yen? because if they do come in, you're going to have a 3 to 5% draw down the day they do intervene. So for a lot of investors, they're pulling back and staying very light in their dollar exposure.
We're going to have tremendous workforce availability. We're also going to have robots helping us. We're going to have a lot of robots helping us because we need it and because we're going to town, we're building a lot between the AI and the auto plants. So we're going to need robots. We're going to have robots, but that's going to help us.
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