Dollars, Gold AND Bitcoin -- John Pennington Jr.

So what I'm about to show you is actually the number one rated speech at Fun Launch Live the last 2 years. My dad's gotten better and better. He's shared some updates. This all dives into the BRICS nations, what's happening with world reserve currency, how to play this whole game. Now, if you guys don't know, my dad is the co-founder of a $28 billion family of funds. He gets on stage and actually does a phenomenal job. So I wanted to show you guys this clip from Fun Launch Live. So with that, we'll roll into it.

Now we're gonna get into economics. I'm an economics geek and I'm going to go fast and I'm going to blow your mind. Hopefully anyway. The greatest product of all time. I'm going to argue this for you and I know you're not going to agree with me, but I'm going to convince you by the end. The greatest product of all time is the US dollar. There has never been a product like US dollar. It sells better than hotcakes. You know when they say, hey, it's selling like hotcakes? No, it's not. It's selling like US dollar. You make trillions of them. And people like you and me will work 80 hours a week to get more. Other people lie, cheat, and steal to get them. Then they'll produce another trillion. And there's insatiable demand for the US dollar. It is the greatest product of all time. Give me a few minutes. Go with me for a minute. I'm going to convince you that it's true and why you need to know this about living in the United States of America. Okay. 2020 world currencies. It takes up 80— sorry, 58% Of the world currency reserves right now. And as you compare, it's, it's, it, the distant second is the euro. It's not even close on world currencies. Now, I think a lot of you out there believe it's a monopoly, and it is. And some of you believe it's a Ponzi scheme, and it could be. But I, I think it's a monopoly. Hey, don't get mad at me. I didn't make it. I was born into it. I was born into the Ponzi scheme. I didn't do it. It wasn't me. I'm just telling you the truth. Don't get mad at someone telling you the truth. So, if it's a Ponzi scheme, there's no mathematical way to taper a large Ponzi scheme. You can't do it. The only way out of it is to play it all the way through. And so therefore, I'm playing it all the way through, and I'm going to help you today understand that that's my position. Okay, and we yes, but you say John, but the U.S. dollar has been going down in value over all these years. Exactly. It's just all the other fiat currencies have been going down faster. We go down, but everyone everyone goes down faster than we do. So it's just it's just a you you I have a friend Jason Hartman. He's a podcaster on real estate. He always says the word. Compared to what? If you're going to complain about something, he's always going to ask you the question, compared to what? Don't just complain. Don't tell him what you don't like. Tell me what you don't like compared to what? So some of you don't like the US dollar, but what are you going to compare it to? All right. So this is the, this is the history. 1960 was 45%. 2001, it was 73%. And as you can see, it's declining. In 2023, it's 58% world currencies. Great. It's still way ahead of everybody else. It's still the best Ponzi scheme out there. It's still the best monopoly we've ever seen. It's still, if they print trillion dollars next week, you still want them. US did make a mistake though. They made a mistake. They weaponized US dollar, but they kicked Russia off the SWIFT system. We'll talk about SWIFT system in a minute. Those, they froze Russian dollars. What this means basically is, wait a minute, if the US dollar is a store of value, and I work, work, work really hard for it, and I'm in Russia, and you can just take it from me, then is it really a store of value? And other countries have come around and said, ooh, we have to rethink about all those US dollars we have in our banks, because they can just take it from us. It's not really a store of value. So they did make a mistake, and the US government does make— the Federal Reserve does make mistakes. I'm not saying they don't make mistakes. All right, so how do they create insatiable demand for the US dollar? If you have a number one product, by definition you have to have insatiable demand. That's all there is to it. So you tax the citizens US dollars. Every one of you out there has to get more US dollars this year to pay your taxes. That creates demand. Another way is you require all oil transactions around the world to be— go in US dollars. If you live in Germany today, you can't like wire your German Deutschmarks down to Saudi Arabia and buy— no. You wire your German Deutschmarks to the Federal Reserve in New York through the SWIFT system, you change them into US dollars, then you wire it to Saudi Arabia, then they send you the oil. That's how it works. Most transactions happen all over the world. Why is that? Well, these 2 guys tried to trade US oil on large scale without using US dollar, And within years of them doing that, well, they both left the planet. And so what is the message that you're getting sent from the US? Don't mess with our number one product. This guy just started trading oil and gas in non-US dollars. And then a few months later, there's a pipeline going from Russia to Germany that puts natural gas It's called the Nord Stream 1. Nord Stream, it goes under the ocean, right? And then a few months ago, just somebody with a submarine blew it up. I don't know who did it, and nor do you. You don't know who did it. You don't know who did it. So that— so anyway, okay. Number 3, the SWIFT system is worldwide transfer of bank-to-bank transfers. It's only done in US dollars. It creates insatiable demand. These 4 steps create insatiable demand. The last one I want to show you is you flood the earth with irresistible loans that are low US dollars, low interest rates. You flood the earth. This is what happened. Here we go. All right. So when the price of money is zero, what is it? It's language. What's it telling you? It tells you something. It tells you something. All right. December 2018, the Federal Reserve comes out and says, you know what we're going to do next year? We're going to lower— sorry, we're going to raise interest rates 3 times in 2019. Then less than 45 days later, they said, oops, sorry, we made a mistake. We're not going to lower interest rates— raise interest rates 3 times next year. We're going to lower it. I was like, what just happened? Something big just happened. I don't know what it was, but something huge just happened. I was looking for clues because my economic brain is going nuts. What just happened? So then I get really frustrated. You know, so I watch Rocky films after that. I can't figure out what's going on, you know. So in March, I read this, I read this article. It says there's $3 trillion of sovereign debt in Europe. Trading at negative interest rates. I have an economics degree. I've never read a book, a chapter. I've never read a paragraph on a negative interest rate. I don't know what a negative interest rate is. You know what it is? If you buy this bond, you are mathematically guaranteed to lose money. That's a negative interest rate. Why does that even exist? I have no idea. And then 3 months later, I read, no, it's not, it's not, it's ballooned to $14 trillion. So the Fed, to compete with Europe— they didn't want the world borrowing money from the euro— to compete, to make insatiable demand for their money, to compete against the euro, they lowered the interest rates. How do they do that? The Fed buys bonds, buys bonds, buys bonds. You buy, buy, buy, buy bonds, the yields go down almost to zero. And then you can borrow US dollars, and they flood the earth with 30-year mortgages. And that— guess what? For 30 years, you have to get US dollars to pay. That creates inflation.

It's a move.

It's a chess move. That's why they did it. They had to compete. Let's go through the US dollar evolution. 2014, the Federal Reserve is created. '29, stock market crash. And in 1933, I don't know if you know this, my grandfather, your grandfather, could not own gold in the United States of America. I don't know if you know this. It's true. There was a gold confiscation. The US federal government said, listen, to strengthen the US dollar, to strengthen us worldwide, all Americans must deliver all their gold bullion to the Federal Reserve, the Treasury. We'll pay you paper money, and then we'll hold the gold in Fort Knox, and it'll be backed by gold, but not by you. You can't turn your dollars in for gold. They confiscated it. You, in 1935, '36, If you had 5 gold coins in your pocket, you could go to jail. I don't know if you knew this. Okay. So, oh, I got this dollar. I was in, I was in the line at Walmart, I think. And this lady was trying to pay with this dollar and she was, and the guy was like, I think it's counterfeit. And she was, I gotta get my manager. I looked at it and I go, I knew what it was. I said, miss, miss, miss, I'll give you this $20 here. You give me that $20. And she goes, oh, thank you. And she gave the $20 and I went home and this, even that condition right there, a 1928 printed dollar bill. backed by gold, it's worth about $150 on eBay. Because I knew what it was, right? And it was like, they thought it was counterfeit, right? And the guy was going to put a line on it with a marker. I said, no, no, no, don't do that. Okay, so in 1944, we're about to win the war, the Allies are about to win the war, and they know we're going to win the war, and there's a thing called the Bretton Woods Agreement. The Bretton Woods Agreement is this. 44 countries sent a bunch of people, 1,000 people, to a little place called Bretton Woods, New Hampshire, and they agreed upon the new reset of the US dollar and world currencies. No longer would the British pound be backed by gold. No longer would the French franc be backed by gold. The US dollar would be backed by gold. Do you know why? Because at the end of the war, we had sold so much stuff to countries, we had 2/3 of all the gold bullion in the world. the US had. So the French franc would be backed by the US dollar, and the US dollar would be backed by gold. The French franc isn't backed by gold anymore, it's backed by the US dollar, right? And that's called the Bretton Woods Agreement. You'll hear this all the time, okay? And that's a picture of the Bretton Woods Agreement in 1944. And this is basically— it doesn't say this in the agreement, but this is basically what happened. Over the next decade or whatever, if you trade oil So after World War II, China's navy's gone, Japan's navy's gone, German navy's gone, Russian navy's gone, everyone's navy's gone except a little bit of Britain and all the US navies around. The navy is one of the most expensive things for a country to have. It's very expensive to run a navy. And so basically the US said, listen, if you trade oil in US dollars, you don't need a navy. We'll protect all your shipping lanes for a small price. Just trade oil in US dollars that's backed by gold. That's what happened. It creates insatiable demand for the US dollar. And then we abused it. We started printing money, printing money, printing money. And by, by 1971, President de Gaulle of France, he basically knew we were— he was up, he was up on us, right? He was like, they're printing way too much money over there. They don't have much gold. So he sent 2, 2 big ships into New York Harbor. Hey, we want our gold. Here's our US dollars. We want our gold. And, uh, and President Nixon came on television on a Sunday night, uh, August 15th, 1971, and said to the Americans, Americans, people are trying to manipulate the world currencies. So temporarily we're going to go off the gold standard and the US dollar is not going to be backed by gold anymore. And he didn't give the gold to France. That's what happened. And so the US dollar now is 51 years old. That's what happened. We've not been backed by— we've been fiat currency ever since then. Okay, so this is the 4 stages. Everything needs reinvention, right? Gold confiscation, Bretton Woods, petrodollar backed by oil transfers, and the US Navy, which the US Navy is very, very, very, very, very strong. And it allowed world poverty worldwide to go like this. And I believe the US dollar with the Navy allows a little country to sell their goods across the world, and they raise poverty in their country. And that's a good thing for the world. There's more, there's less people poverty today, way, way than there ever has been in world history. You can argue that you don't like the US compared to what? You can argue, I don't like the dollar compared to what? I don't like the US Navy compared to what? And I will argue with you and we'll have a good discussion with, if you went back in time to 1944 and you changed everything, there'd be more people starving today than there was, than there is today. Because of these 3 things. So you have to, again, you, when you, when you complain about the dollar or you complain about US Navy or the military or whatever, compared to what? And I would say to you, compared to people starving and not making a living in these small countries, because the US Navy has basically calmed the whole pirate thing down all over the world, and China has been one of the most benefactors of this policy. They have grown like— they've grown an economy faster than any economy in history. Okay. President Biden traveled to Saudi Arabia. Saudi Arabia was thinking, hey, we're thinking about selling our oil to China on the yuan. Now, I got to give it to President Biden. He flew over there. A president of the United States flies over and says, Hey, we got to negotiate. We got to talk. We got to talk. We don't want you selling, you know, oil in the yuan. Now, we don't know what he said, but he could have said something like this. And this is a, this is a tactic. This is a tactic that good negotiators use, right? And I've taught my kids this, and this is, I'm trying to teach you this today. You ask a question, okay? Mr. Saudi Arabia prince dude, listen. We understand that you sell a lot of oil to China and you want to sell in yuan, but let me ask you a question. If you start selling oil for the yuan, how can the US president, me, convince US Congress to keep paying for all this military protection? How are we going to sell you F-35s? How are we going to pay for US Navy protection? How are we going to keep 5,000 troops in your country training all these things and running all these, all these great, great stuff? And giving you satellite. How can we do that? And in negotiation, what you do is you reformulate their question, their terms, and you formulate, you put it back to them, and you say, how can I do that? And you shut your mouth. You zip it. And you let Prince Saudi Arabia dude try to answer your problems for you. That's a negotiation. If you take a negotiation class, that's one of the things they're going to teach you. And that's what I'm trying from here to you today. That's why that's what I'm trying to teach. I'm trying to transfer some knowledge to you, right? It's a great tactic. And so evidently, the that was a few months back. Evidently, they did it. They did. They didn't sell. Okay. And probably he reminded them of this too. He didn't say it, but he just kind of you know. Did you hear about that Nord Stream pipeline thing? Oh yeah, I heard about that. Yeah. Okay, the Federal Reserve seeks to control all competitors— Bitcoin, yuan, gold. If you had another— if you had a number one product in the world history, would you try to protect it? Absolutely. You try to take your competitors out. Okay, here we go. So this is— this is that clue. This is my clue. It was— it happened, um, summer of 2020. Morgan Stanley is fined almost a billion dollars for manipulating the precious metals market. SEC fined them. And I think what happened that summer is the SEC learned how they can control a market. The gold and silver market is massive, and they got fined $1 billion for doing it for 9 years. Okay, so the SEC learns how to do that. So a year and a half later, I believe this is what happened. Bitcoin hit an all-time high in November. The SEC allows an ETF to come to market on Bitcoin. on futures. But what you have to listen— sometimes when people— what people don't do is what they tell you more than what they do do. They didn't allow a future— an ETF that actually buys and sells Bitcoin. They disallowed it, right? They extended their lawsuit, the SEC, against Ripple, which is a coin that competes against the SWIFT system. Bitcoin starts and character change, and then Hillary Clinton says Bitcoin could take down Our world reserve currency. Our world reserve currency. She just— so what's the probability that she just said that off the cuff? Or what's the probability she had some information a few months before and she was letting her memes know, hey, I'm really smart, I love the microphone, and I'm going to tell you a hint? What's, what's the probability? So it hit $69,000 that month because the number one job of the Federal Reserve: protect and promote the US dollar. I know they've got to take care of inflation, that's one of their jobs. They got to take unemployment, that's one of their jobs. But the number one job is to protect their number one product. This is a chart. You can see over here goes $69,000 and then starts selling off. And that's November. That little flat line right there, that's November 2021. And I was like, that doesn't happen in Bitcoin. It traded flat for like a whole week. It didn't move. Something's going on. And so how do you control a market? This— I'm about to give you a theory, but this, this, This is it, okay. If Bitcoin trades 1,000 coins a day, you need 45,000 Bitcoin. If it trades 100 coins a day, you need 4,500 Bitcoin. If you can get 45 days of trading volume, then you can control the market. Because what's happening, it goes $69,000, you take your 45 days of trading volume, put it on top, and buyers come in, they try to get through, they can't get through. And then it goes down to $68,000, but guess what? You know who's buying? The Fed then at $68,000 starts to buy. They're replenishing their 45-day trading volume. Then the stock goes up to $68,500. Then the Fed puts their 45-day trading volume on top. They can't get through it. And then it goes down $65,000. And who's buying? The Fed buys down here. They replenish. You're playing against a company, the Federal Reserve, that doesn't want to make money. That's, that's what hurts your head. That's why you can't beat them. They don't need to make money. They print money. They make the money, actually. They actually make it. Not like you and me make it. They make it, right? So Bitcoin is half a trillion, half a trillion, and gold and silver too. So a company with limited funds, JP Morgan, they corralled the gold and silver market for 9 years, and they had limited funds. The Federal Reserve has unlimited funds, and the Bitcoin market's only $530 billion. The Fed spent $120 billion a month for 30 months keeping interest rates down. This is nothing to them. They're controlling their competitors. So the US dollar has to go through a rebranding. Everyone does. You do. I do. If you're a parent, you got to raise your kids differently as they get older. If you're a spouse, you got to rebrand yourself. Everyone has to rebrand. So in the near future, they're going to change to the US dollar. The US dollar is going to go digital, and this is how they're going to do it. So this, this is November. And so the Fed tells you things, they give you hints. This is the hint. Here's just your first hint. November 2022. Hey, we're the Fed. We're gonna, we're gonna try our US digital dollar with Wells Fargo and Citibank. Hint, Wells Fargo and Citibank aren't going to get closed. If you want to bet on a bank, those are the two banks you need to bet on. Because that's a hint, right? They tell you what price is a language. It's telling you something all the time. Okay, then four or five months later, what do they do? The first three banks they close are crypto banks. A coincidence? Hey, we're coming out with our digital dollar, and four or five months later, all you crypto crypto bank crypto bank crypto bank you're dead. They're eliminating— oh geez, I'm getting excited now. They're eliminating all of their competition. Get away from me because we're coming out with our digital dollar. You're gone. They're sending a message. Then they're gonna— SEC is going to file a case against Coinbase just last month, March. Well, a couple months ago. Then March, they're going to go after, uh, they're gonna go after Justin Sun and the crypto entrepreneur. They're going to sue him. And then Next month they're gonna swoop in. They're giving you a message. They're taking out their competition. They're protecting their number one product, okay? They're reinventing the digital dollar. This guy reinvented himself 3 times. You have to do that. You have to, over your lifetime, you have to reinvent yourself or you're gonna be boring, you're gonna die, you're gonna whatever. You gotta reinvent yourself, okay? So there's 4 phases that they're gonna go through. This— and this is theory, okay? It's just my thoughts of how they would do it. All right, here we go. They're going to say, hey, listen, we have a digital dollar, we have cash. You can do— you use both, we don't care. It's a free country. Use the digital dollar, use the— we don't care. Then the next phase, they're going to, uh, they're going to have a— we're— hey, the US is going broke. They're going to create a crisis. Hey, we're going broke. You know we're going broke because we can't collect all of our taxes. There's a bunch of tax cheaters. If we had all our money— this is a lie, by the way— if we had all our money in taxes, we could pay our bills. That's not the truth. They spend too much money, and everyone knows that, right? But that's the crisis they're going to build and sell to the American public. And then there's going to be a media blitz that, hey, if you have a business and you're accepting cash, you're allowing tax dodgers, and that's hurting America. And then maybe in May 2020, 2033, 100 years after the gold conversation, maybe they say, for the sake of the country and to make America strong again, we're not going to allow gold, silver, or Bitcoin. You have to— and no cash anymore because that's tax dodger people. You have to go— everyone has to switch. And then you go, wow, they did it once before. You say they can't do stuff. But can't isn't— I don't— can't's not the right word when you talk about the Federal Reserve. I hear people all the time, the Federal Reserve can't do this. Well, man, they can do a lot of things that I don't know. They're like, they're like a magic wand. Okay, so the phase 4 could happen here. I just put up May 2033 because it's the 100-year anniversary of the gold confiscation in the United States of America that most of you didn't know about. Most of you did not know your grandfather could get thrown in jail for holding 4 gold coins in his pocket. I love this one. This is— I have this poster in my workout room. I love this. It's Muhammad Ali. A man who views the world the same at 50 as he did at 20 has wasted 30 years. That's almost a billion seconds. People say, hey, John, what about China? Is China going to take over? It's back to the US dollar. It's back to the Federal Reserve. It's all— all the weird things in the world come back to the US dollar. Because it's the best, greatest, biggest, baddest product ever invented. People say, well, China's going to take over the world. Really? Okay, let's go through that really quick. China has a weakness and they know it. They can't take Taiwan right now. They know it. They're a net importer of food and oil, and most of their oil comes over the water, and we have the biggest navy. So you invade Taiwan, we can cut off all your oil easy in the Indian Ocean. In 120 days, you're almost out of oil. They know this. That's why they're building pipelines to Russia as fast as they can. And they're also plowing through peach orchards and grape orchards and putting down grain. I mean, they're really doing this. We have the biggest, baddest US Navy in the world. We are a net exporter of food, and we're a net exporter of gas. China knows that they have weakness, and they've got to fix the weakness. China's economy's got some problems too right now.

So, Back to this.

What people tell me, well, the yuan's going to take over the world. Really? Last 35 years, the biggest, baddest country that's grown the fastest over any country in the world is China. They went from 0.2% to 2.7% of the world currency. That's in the 35 years of growth. So what you're telling me is on that chart, if they are still the fastest growing country from now for the next 30 years, They'll go to 6%? It's like this. If me and you, and we all agree, and this— I love Arizona, but I'm just going to give Arizona as an example. If me and you all agree that all the water in Arizona is bad, okay, we agree that it's all bad. What do you want to do? You want to replace it with Gatorade? Okay, let's look around the world. There's not enough Gatorade in the whole world to replace all the water, right? It's always compared to what? Right? So even though the U.S. dollar has its problems, compared to what? So Federal Reserve, you got to, you got to get, you got to go through this. Look, this guy, everyone complains about Jerome Powell. Listen, he has an alternative. He has a U.S. Congress. It's like, it's like a couple. One person makes all the money and the other couple or a partner, the other person spends all the money. And the person that spends all the money says, make more money. And if I was the Federal Reserve chairman, I'd just be like yelling at Congress, stop spending money. I'm doing the best job I can over here. The Federal Reserve is protecting their product, but Congress keeps spending tons of money. But guess what? China spends more than— China prints more money than we print. That's why they go down faster than we go down. It's compared to what? So when you have to get this theory in your head, when the Federal Reserve says we want to have 2% inflation, You can't believe— that's what they're telling you. Think about this. What if they really, really, really wanted 9% inflation? Could they tell that to you? No. They have to tell you we want 2%, and then they overshoot it. Then they say, we're sorry, it was transitory, we made a mistake. And they just needed to go up. Why? Because they need to strengthen the US dollar. They need to show Saudi Arabia it's a good thing. You didn't take that yuan for that oil. Because now you're US— when we give you US dollars for oil, you can now take your US dollars and put them into Treasuries and make 4 or 5%. What can you do with the yuan? See, it's a nudge. They're nudging. It's a huge game. They're nudging. And all problems come back to the inflation strength of the US dollar. So Where am I at here? Long list of US, Germany companies. Oh yeah, in the last 3 or 4 years since China has been trying to buy oil for the yuan, there is a— my data shows there is a plethora of countries from Germany, Japan, United States have left their manufacturing in China. China's unemployment rate for the youth is over 25%. It's bad. It's like 1929 stuff bad. What is the US doing? They've told all their companies, hey, listen, we're going to be putting the pincers on because these people— you know why we're going to go after China? They want to buy oil not using US dollar, and we can't allow that. So we're going to pinch them. We're going to pull back our orders. We're going to put orders to Vietnam and Korea and all these other places. You're going to be unemployed, and you're going to one day— hopefully they're going to try to get orders back from us, and we're going to say, you know what, we'd love to send you orders. Now you can. All the sanctions are gone. You can send your orders back, we'll start buying stuff from you again. You got to buy oil in US dollar. So, the Fed sends messages always. It's always a message about their number 1 product. In real estate, you have 3 rules: location, location, location. In investing, you have 3 rules: don't fight the Fed, don't fight the Fed, don't fight the Fed. Eventually, they get their way because They actually make money. All right, so what I want you to remember: negotiation. I trust you, Aunt Betty. I just don't trust your children's lawyer. Okay, you can negotiate with size. A fund can do that for you. You can give loans for 8%, and you can still make 18%. A question. How can I do that is a negotiation tool that you need to always use. Not always, but most time use because it allows your party that you're negotiating against to see your side because they have to answer your question, and most of the time they can't answer your question, and therefore your negotiating goes much better. The Fed protects and promotes the number one product of all time, the U.S. dollar. The Fed seeks to control all competitors: Bitcoin, gold, and yuan. The Fed is communicating. Price is a language. It's a code. It secretly tells you stuff. And they protect all strange things. Okay, think about this. President Biden gets elected. He turns off the Keystone Pipeline. You're like, why? Why are you turning off the Keystone? That doesn't make any sense. We have oil in Canada that comes down here. It's great. Oh, if I turn the Keystone Pipeline off, then we have less oil. We as a big country, rich country, has to buy Some oil from Saudi Arabia, because we— if we bought zero oil from them, we couldn't tell them they couldn't sell the yuan. We have to buy. So all the strange things in the news, if I watch strange things in the news and I go, that doesn't make any sense, but then I put the US dollar in there and I go, oh, oh, now it makes sense of why they do this. My purpose here today, to transfer knowledge to a younger generation. Not just for fun. I was going to do the fun thing on you, but I decided not to. You know, my purpose today is to transfer some knowledge to me. Bridger doesn't pay me to be on the stage. I just thought if I could come today and help you figure out life, funds, how things may work, and how to, how to, how to look at things through probabilities rather than predictions. Don't try to predict the future, try to run probabilities. You can get rich quick in 1 billion seconds. That's what I did. It only takes a billion seconds. Stand up, stand up. I'm not afraid of being poor. I'm not afraid of being old. I'm just afraid of being old and poor at the same time. Thanks for attending.