US Empire Cracks; Bitcoin Rises (Jack Mallers Show EP 75)

Jack Mallers analyzes the US government's internal fights, the plan to weaken the dollar, and why Bitcoin's resilience is more important than ever.

Timestamp Overview

[00:00:00 - 00:05:33] Introduction & New Show Format

The show kicks off with a Bitcoin market update, including price ($118,240), market cap ($2.35 trillion), and block height (907,619).
Jack Mallers introduces a new format for the show that will include regular updates on his companies, Strike and 21.
He explains this change is a direct response to audience demand for more information on the businesses he runs.
The show will now follow a structure of Intro -> Strike Update -> 21 Update -> Main Topics -> Q&A.

[00:05:34 - 00:12:44] Strike Updates: Lending & Global Expansion

Strike has launched “virtual accounts” for international users, allowing them to deposit funds that are held as Tether (stablecoins).
The company has expanded its Bitcoin-backed lending services to six new countries, including Argentina, Brazil, and South Korea.
Features of Strike’s lending product include no rehypothecation (your Bitcoin isn’t moved or reused), no credit checks, and no origination or early repayment fees.
Jack shares a powerful customer story about a man who used a Bitcoin-backed loan from Strike to make a down payment on a house with a backyard for his son.

[00:12:44 - 00:18:20] 21 Updates: The Path to Going Public

Jack’s company, 21 (ticker: XXI), has officially filed its S4 registration statement with the SEC to go public by merging with Canter Equity Partners.
Due to the ongoing process with the SEC, the company is in a “quiet period,” limiting what Jack can publicly discuss about future plans.
He emphasizes his focus is on getting the deal closed, which he believes is the best thing he can do for Bitcoin, shareholders, and the market.
21’s proof of reserves is public, showing a holding of over 37,229 Bitcoin, making it the third-largest corporate Bitcoin holder in the world.

[00:18:20 - 00:34:30] Our Parents Are Fighting: The Empire Cracks

This section details the public feuds between top US financial figures, which Jack describes as “parents fighting in front of the family.”
He highlights a sharp exchange between current Treasury Secretary Scott Bessent and former Secretary Janet Yellen, where Bessent criticized her policies and priorities.
Bessent is quoted calling the Federal Reserve “a casino” where the house always wins and the people lose, undermining its credibility.
The segment covers President Trump’s visit to the Federal Reserve, where he publicly questioned and embarrassed Fed Chair Jerome Powell over construction budget overruns.

[00:34:30 - 00:46:25] The Push for a Weaker Dollar

President Trump is shown stating that a “weaker dollar” is better for the economy because a strong dollar makes it impossible to sell American products like tractors and trucks.
Jack explains this is a sign of a major policy shift. An artificially strong dollar (due to its reserve status) has hurt US manufacturing and created a wealth gap.
To bring jobs and manufacturing back to the US (“build America back”), the government must deliberately weaken the dollar.
The discussion includes how countries like Russia and China are already settling trade in gold instead of US dollars, signaling a move away from the dollar system.

[00:46:25 - 00:54:53] AI, Manufacturing, and the Future of the US

The global race to lead in Artificial Intelligence (AI) is discussed as a key challenge for the U.S.
Unlike previous tech revolutions, AI requires immense physical hardware and data centers, forcing the US to rebuild its domestic manufacturing capabilities.
To make this manufacturing push economically possible, the dollar must be weaker to make local labor and investment affordable.
Major players like SoftBank, OpenAI, and Meta are pledging hundreds of billions of dollars for AI infrastructure, which will require significant financial and labor investment within the US.

[00:54:53 - 01:00:53] Bitcoin’s Strength: Slaying the Bear

Jack analyzes a recent event where 80,000 Bitcoin (worth nearly $10 billion) were sold on the market with very little impact on the price.
He argues this proves Bitcoin’s strength and liquidity, debunking fears that large corporate treasury sell-offs could crash the market.
He points out that the combined holdings of most treasury companies are less than the 80,000 BTC that were just easily absorbed.
The segment concludes by showing that while stocks are “up” in dollar terms, they are down significantly when measured against Bitcoin over the last 1, 5, and 10 years.

[01:00:53 - 01:13:00] Audience Q&A

Jack answers questions about the global impact of the US devaluing its currency, explaining that it exports inflation and forces other countries to react.
He addresses a question about longer-term loans on Strike, stating that while he’d love to offer them, finding capital partners for such loans is challenging.
He confirms that Strike is launching in Australia very soon and offers an OTC (over-the-counter) desk called Strike Private for large or custom transactions.
He discusses 21’s strategy, noting that while he can’t talk about future plans, the company’s board (including Tether and SoftBank) gives it unparalleled access to capital and expertise.

Notable Quotes

The Role of Bitcoin
Bitcoin is the only way our kids will have a better life than us. Holding it is the revolution. And holding for when they are older will make their lives better.
Strike Customer

The Federal Reserve
The Fed is the house. It's a casino. The casino doesn't lose money. The players are the ones that lose money.
Scott Bessent @SecScottBessent

Janet Yellen's China Policy
I couldn't even tell you what Secretary Yellen's China policy was aside from consuming beer and mushrooms.
Scott Bessent @SecScottBessent

Monetary Regime Change
What you are seeing is the death of an empire. What you are seeing is an active remaneuvering of capital flows, of monetary relationships, and ultimately monetary order around the world.
Jack Mallers @jackmallers

A Weaker Dollar
When you have a strong dollar, you can't sell anything. It is good for inflation. That's about it.
Donald Trump @realDonaldTrump

A Weaker Dollar
Now, it doesn't sound good, but you make a hell of a lot more money with a weaker dollar. Not a weak dollar, but a weaker dollar.
Donald Trump @realDonaldTrump

AI's Impact
AI is now doing what used to be done by first to third year associates. AI can generate a motion in an hour that might take an associate a week, and the work is better.
Andrew Yang (Quoting a Law Partner) @AndrewYang

Bitcoin Market Resilience
It's going to take orders of magnitude more than 80,000 Bitcoin to stop what's coming.
Jack Mallers @jackmallers

Questions & Answers

Question 1: Can you speak to how the impact of quantitative easing/money printing in debasing of the U.S. dollar will impact the rest of the world/countries in the Commonwealth (Australia, UK, New Zealand)?

Answer: Jack Mallers explained that the U.S. effectively exports its inflation when it debases the dollar. This impacts every country, forcing them to either let their currency strengthen against the dollar or devalue their own currency in response. He believes this global monetary instability will drive capital into neutral, hard assets like gold and Bitcoin, as they serve as escape valves for people everywhere, regardless of their local currency.

Question 2: Since Bitcoin’s price has historically been higher after any four-year period, could Strike offer four-year loans to reduce this risk, or is there a way to structure multiple one-year loans to achieve the same thing?

Answer: Jack acknowledged this is a great idea and a product he would love to offer. However, he explained that the primary challenge is finding capital partners (people with dollars) willing to finance such a long-term loan at a fixed rate. Unlike government-backed mortgages, a 30-year or even a 4-year fixed-rate loan is very difficult to structure in a rational, free-market environment. He stated that while it’s challenging, he will continue working on it. In the meantime, Strike will soon release a feature to make refinancing existing loans easier.

Question 3: When is Strike Australia launching?

Answer: Jack responded that the launch is “very soon.” He mentioned that support for the Australian dollar has already started rolling out in the latest app versions for users in Australia, and a more formal announcement with additional features, potentially including lending, will be coming in a few weeks.

Question 4: Does Strike have an OTC desk?

Answer: Yes. Jack explained that Strike offers a service called “Strike Private” for high-net-worth individuals or clients with unique, large-scale needs. It’s a white-glove, concierge service where clients can get on the phone with Jack himself or other team members to execute large trades, secure large loans, or solve complex financial problems. Interested parties can reach out via email to private@strike.me.

Question 5: What are your thoughts on MicroStrategy’s stretch offering? Would 21 adopt something similar? What alternative monetary vehicles may 21 offer that are better at optimizing Bitcoin yield?

Answer: Jack stated that due to being in a “quiet period” with the SEC, he cannot discuss future plans or potential offerings for 21. He praised Michael Saylor’s work at MicroStrategy as “trailblazing.” Regarding 21’s capabilities, he emphasized that the company’s board, which includes leadership from Tether and SoftBank, gives them an unparalleled ability to access capital and build products. He confidently stated, “we feel like there’s nothing we can’t do,” but said any official announcements will be made publicly after proper filings.

People and Organizations Mentioned

Jack Mallers: The host of the show, CEO and founder of Strike and 21.
Strike: A financial services company founded by Jack Mallers, offering Bitcoin services like buying, selling, and Bitcoin-backed lending.
21 (XXI): A company founded by Jack Mallers that holds a large Bitcoin treasury and has filed to go public on the stock market under the ticker XXI.
SEC (Securities and Exchange Commission): The U.S. government agency that oversees securities markets. Mentioned in the context of 21’s S4 filing to go public.
Canter Equity Partners Inc.: The company with which 21 is merging to go public.
Janet Yellen: Former Chair of the Federal Reserve and former U.S. Treasury Secretary. Mentioned in a public dispute with Scott Bessent.
Scott Bessent: The current U.S. Treasury Secretary in the transcript’s narrative (in reality, a prominent hedge fund manager and economic advisor to Donald Trump). He was quoted heavily criticizing the Fed and Yellen.
Jerome Powell: The current Chair of the Federal Reserve. Mentioned for being publicly confronted and criticized by Donald Trump.
Donald Trump: The 45th and current President of the United States in the transcript’s narrative. He was featured heavily for his criticism of the Fed and his desire for a “weaker dollar.”
Federal Reserve (The Fed): The central bank of the United States. It was a primary subject of criticism for its policies and alleged incompetence.
U.S. Treasury: The executive agency responsible for promoting economic prosperity and ensuring the financial security of the United States.
Fox Business & CNBC: News channels mentioned for broadcasting interviews and reports on the political and financial events discussed.
Ben Bernanke: Former Chair of the Federal Reserve. Mentioned briefly as a predecessor to Powell.
President Xi: President of the People’s Republic of China. Mentioned in the context of Trump’s trade battles.
Andrew Yang: American politician and entrepreneur. He was quoted sharing a story about AI replacing the work of junior law associates.
SoftBank: A Japanese multinational investment holding company. Mentioned as a key partner and board member for 21 and a partner in a major AI project with OpenAI.
OpenAI: An artificial intelligence research organization. Mentioned for its multi-billion dollar AI infrastructure project.
Mark Zuckerberg: CEO of Meta. Mentioned for pledging hundreds of billions of dollars towards AI data centers.
Meta: The parent company of Facebook and Instagram. Mentioned for its massive investment push into AI.
Galaxy Digital: A digital asset and blockchain financial services firm. Mentioned for reportedly executing the sale of 80,000 Bitcoin for an early adopter.
MicroStrategy: A business intelligence company known for its large Bitcoin treasury, led by Michael Saylor. Mentioned as a pioneer in corporate Bitcoin strategy.
Michael Saylor (Sailor): The Executive Chairman of MicroStrategy. Referred to as “Sailor” and praised for his trailblazing work in raising capital to acquire Bitcoin.
Tether: The company behind the USDT stablecoin. Mentioned as a key partner and board member for 21.
Pomp (Anthony Pompliano): A well-known technology investor and Bitcoin advocate. Mentioned for a tweet about the stock market.
Chase Bank: A major U.S. bank. Mentioned as an example of where funds from a Strike loan can be instantly withdrawn.

Transcription

Jack Mallers [00:00:09]: Yo! Welcome back to another episode of the Jack Mallers Show. it is Monday happy Monday Mailbag Monday proof of closet ladies and gentlemen that’s how we kick this show off this is unlike any other corner the Internet you hang out in this is our corner of the Internet a bit coiners corner of the Internet welcome back to Mailbag Monday this is episode 75 titled our parents are fighting the Empire’s cracking but bitcoin doesn’t care honey badger ain’t give no crap let’s get started My lovely, lovely, lovely audience, I’m talking to you guys at a Bitcoin price of $118,240. Bitcoin’s market cap remains well above $2 trillion at $2.35 trillion. All-time high is still $123,000. We’re about 4% off high, so we are really consolidating just below the all-time highs. For those that are sick of this concept of time we’ve used up until this point, and you want to track time in Bitcoin blocks, I’m talking to you all at Bitcoin block height 907,619. Without further ado, let’s get this show on the road, because I have a tight schedule today. Okay, a little update. to the format of the show. And I’m not talking about my haircut. I can see the comments now. Wow, Jack, what a beautiful haircut. You’re such a charming, handsome young man. That’s not what I’m talking about. It’s not what I’m talking about. What I’m talking about is the fact that, for those that don’t know, I’m Jack. I’ve been in Bitcoin for 13 years. And I’m the CEO and founder of two businesses. One is called strike. We’re Bitcoin financial services company. Another is called 21. We have filed with an intent to go public in the capital markets and be the best place for the capital markets to get exposure to this whole Bitcoin thing. Okay. A lot of the Q and a on this show. is about, hey Jack, what about this strike feature? What’d you guys just launch? How’s it going? Can you answer my question about your business? Or, what’s up with 21? We don’t get enough updates. Now when I started the show, it was sponsored by me. Still is. It’s a self-hosted thing. I clearly am not a professional podcaster. I don’t have a big swooping team that’s helping me do all the fancy stuff. And there were no ads. Never have been, never will be. So I was always hesitant to talk about my own businesses in an upfront way. But you guys demand it. You guys demand it. So we’re going to try to go from intro, where I’m laying in the middle of my closet, proof of closet, We’ll do an update on Strike, an update on 21, and then we’ll get into the show of Macroeconomics, Bitcoin, News of the Week, and then we’ll end with Q&A. But I hope this addresses some of the questions you guys have wanting to hear about the businesses, because I really appreciate it. Many of you guys are customers, and it means a lot. If you guys do want to support me, you can be a customer of Strike, you can be a shareholder of 21. And so, we’ll see how this goes. You guys will give me feedback in the comments. If you like the updates on the business because so many of my listeners are also interested in my companies, great. If you guys are like, this is the worst episode of all time, I won’t do it. Okay, so with that, Off to the strike stuff. So very recently, we’re going to blitz through this. I don’t have a ton of time today. Strike, we recently launched what we call virtual accounts, which is if you are not, if you are not in the United States, in Europe, in the United Kingdom. So that means if you’re a strike user, you’re probably in Korea. You’re probably in Latin America. You’re probably in Africa. We launched this idea of virtual accounts. It allows you to deposit into the app with a virtual bank account okay and we receive it and hold it as tether all of our customers in latin america and africa they love tether they love stable coins they do not want to store their money in the naira they do not want to store their money in the argentin peso they do not do not do not and so this gives everyone access to deposit and withdraw lots of money so you can have instant bank withdrawals you could withdraw to a virtual account, you could deposit to a virtual account. The reason we did that is because we also enabled lending in a lot of these markets. So our latest announcement news, we enabled it in six countries, Argentina, Brazil, South Korea, Costa Rica, and El Salvador, New Zealand as well, but only for business accounts. And so now we are not only a Bitcoin backed lender in the United States, We allow you to borrow money against your Bitcoin in Latin America. New Zealand is pretty cool. Central America with Costa Rica and El Salvador. We continue to push the boundaries of Bitcoin financial services around the world. So for me, this is a very cool update. Bitcoins taught me a lot about how big the world is and the different financial needs of everyone It’s remarkable the amount of privilege I’ve been born into so building tools for other markets has been a pleasure It’s been a joy And this is the biggest request we’ve had for those that have been in these other markets the only way to get money into strike was a debit card or a credit card that’s no way to deposit

Jack Mallers [00:05:34]: a thousand bucks, five thousand bucks, ten thousand bucks, a hundred thousand bucks. And so now if you are a whale, if you are someone that wants to buy a little bit more Bitcoin, borrow against that Bitcoin in these markets, you now can. We’ve seen some loans come through the coolest, you know, for me Argentina is one of the more fascinating markets. They really pioneered stable coin adoption, tether adoption, and they’re very sophisticated in the way they use Strikes. So it’s been pretty cool for me. And then just our lending product. Almost every single episode you guys are asking me about our lending product, so I figured I would just revisit it, throw a little bit of info in the start. Maybe I’m answering your questions. If not, put them in the chat. I’ll answer them at the end. But, you know, I think we have the best Bitcoin-backed lending product in the world. The only problem that we’re actively working on is that it isn’t available everywhere. That’s the only thing. It’s only a few months old. We’ve already issued hundreds of millions of dollars worth of loans against Bitcoin. And we’ve already become one of the biggest Bitcoin-backed lenders in the world. Here are some of my favorite features. No rehypothecation. So your Bitcoin just sits there. There’s no such thing as it moving. We don’t do anything with it. We only make money on the interest that we charge. There are no credit checks, no origination fees, no early repayment fees. So a lot of these other services will say, Yeah, you know, we have rates similar to strike, but there’s an origination fee of 2% to get started. That’s not us. You do not pay a fee to get a loan open. You do not pay a fee to close your loan. You just pay the interest fee. That’s it. No rehypothecation, no credit checks. You can take a loan of any size. You can have five loans at once. We’re also about to release refinancing the loan in the app. So you literally click a button the way I use our strike loans, and I’m going to release a video because you guys said you really want to see a breakdown of how I use the product. I borrow against my Bitcoin. It’s a fraction of my total stack. So if there’s a bear market or something, I can always post more collateral. There’s no rehypothecation. I have no concerns whatsoever. And then I just refinance, refinance, refinance. It just never closes. I keep rolling it. I keep rolling it. Bitcoin outgrows the interest I’m being charged. So we’re going to put that refinancing capability as a button in the app. We’re also going to have products like that look more like a margin loan where you can continue to extend and add to a loan. So, I mean the fact that we have, I mean we’re a financial services company, so you can get your direct deposit into Strike, you can pay bills with Strike, you can smash buy Bitcoin, DCA for no fees, there’s target orders, you can withdraw cash instantly to a bank account. So like I’ve had instances where I have a big fiat bill to pay, I borrow whatever, 30 grand against my bitcoin, I instantly have that 30 grand in a Chase account and boom, boom. It’s a remarkable product, it doesn’t shock me, it’s the fastest growing product in strike history, it does not shock me we went from not having this product built to being one of the biggest lenders in the last few months. So, amazing. And I’m glad that more markets have access to this. As far as the United States, I already know. I don’t even want to read the chat right now. I already know what you’re asking. When this day? When this day? When New York? When California? I promise you. I spend almost all my waking hours getting these lending licenses. Whether it’s a minimum you’re upset about, whether it’s state access you’re upset about, it’s almost always regulation. Guys, look at me. Do I look like the kind of guy that wants to restrict your access to my products? What, are you shitting me shithead? Shout out Danny Boy Hustle Hard. You shit me shit head, I would never. It’s almost always regulation. So we are pounding pavement. We stop at nothing to get you guys access to this product. So we are in about a little over half of the United States for individuals. We are in over 40 states for businesses. If you have an LLC, if you have a business, there’s plenty more access if you have a business in the United States. We’re also working on Europe. We’re also working on the UK. I’ve got some exciting things to announce about Australia in the coming weeks. So that’s my lending update. I wanted to show you guys just how people use it to change their lives. I tweeted this earlier. So if you follow me on Twitter, sorry for the redundancy, but I’m going to read this out loud. This was sent in to me by a customer. I mean, the relationship I have with all you guys I don’t take for granted. It really is so special to me. This podcasting stuff isn’t my job. I just enjoy being part of this Bitcoin story with you guys. Thought this would be cool to share. I asked for his permission. He said as long as I don’t dox him. So no dox, but this was special. He wrote, Jack just wanted to thank you. I’ve been living in a one bedroom, one bathroom apartment for years. My son couldn’t really go out and play because there was nowhere to go out and play. And from time to time, I’ve thought about selling to just buy a small home with a backyard for him. But I never could. Not for greed, because we know where the price is going, but because of the meaning behind holding. Bitcoin is the only way our kids will have a better life than us. Holding it is the revolution. And holding for when they are older will make their lives better. While I really wanted a backyard for him, I wanted more that he will have the options I didn’t. Regardless you solve my problem when you launch Bitcoin back loans and I say you because I know others have them But in this part of the game trust is inevitably required and I don’t trust anyone else in the industry to keep our coin safe except for you Maybe it’s that we’re in the same generation. Maybe it’s your transparency Anyways yesterday we put an offer on a small house, and it was accepted He already tested the backyard and was at first surprise that we were letting him some freedom to go play as where we usually have been We couldn’t just let him run around the down payment just settled from strike Thank You man fellow bitcoiner with not a single dollar to his name except the down payment for this month salute Man, that’s respect right there, that’s love. That’s how we change the world, one Bitcoiner at a time. None of this DeFi shit, none of this smart contract nonsense garbage, Solana Dogecoin bullshit. That’s an honest, hard-working man that just needed a way to save for his future and build something for his family. That’s what Bitcoin enables, right there. That’s why I founded this company. right there. Listen guys, I’m not perfect, but I am here for you. I try my best to do that. We have customer support. We have an active phone number you can call us. You can buy Bitcoin. We even have a way for you to buy it with no fees. You can withdraw to cold storage for free. You can get a loan, access that wealth without parting with your sats and change your life. Borrowing and taking out debt is not for everyone, but if it is for you it can change your life And I have your back, okay? Next 21 this little business called 21 of mine I’m just going to reference a press release we put out three weeks ago at this point, maybe a little over that. Canter Equity Partners Inc. in 21 Capital Inc. announced filing of draft registration statement on form S4 with the SEC. So for those that don’t know, in April we announced an intent to file. This press release is us announcing to you all that we did file with the SEC. We did file our S4. So what that means is our paperwork is sitting with the SEC and we’re working on our ability to go public via merging with counter equity partners. We’re working on the deal closing and being accepted. What that would result in is our stock, which is ticker XXI. Clever, I know. You don’t have to compliment me, I know. It’s 21 in Roman numerals. That would allow us to list that stock, XXI, on a stock exchange. So when people say, what’s the update? What’s the update? That’s the update. That’s about as much as I can tell you guys. Obviously, when I’m sitting with an active deal, an active merger that’s in the hands of the SEC, there’s what’s called a quiet period. Imagine telling me to be quiet. I’ve got one of the loudest mouths in the world. I’m not saying that’s a good thing. That’s just a true thing. So that’s the reality of the situation. We’re in what’s called a quiet period. And at the end of the day, listen, I can crack jokes. I can make fun of whoever and run my mouth. But at the end of the day, accomplishing anything big is really just the story of a bunch of small wins every single day. That’s how I run my businesses. There’s no such thing as a grand slam that scores 100 runs in one swing. You can’t do that. It’s physically impossible. You have to win the day over and over and over and over again. Fall in love with the proof of work. Fall in love with the process. And where 21 is in its process is we’ve built an incredible business. We’ve kept this process clean. We’ve done everything asked of us. And where I am right now is getting this deal closed with the SEC and with my partners. It’s the best thing I can do for Bitcoin. That’s the best thing I can do for 21 shareholders. That’s the best thing I can do for the SEC, for the United States of America, for this new administration, so on and so forth. So that’s my focus. It’s a quiet period. I need to respect that because it’s the best thing I can do for everybody. And that’s pretty much that. I mean, listen, we will have more announcements. I will announce them when I announce them. Like, I’m not going to sit on Twitter or on YouTube and tell you guys anything different than I tell the SEC. So when I go to announce something and I go file, everyone will know about it. If you are interested, about our Bitcoin, how much we hold. We have proof of reserves at 21. I fundamentally believe for proof of reserves, if you cannot withdraw the Bitcoin, proof of reserves is invaluable. At 21, a lot of the value of the business that our shareholders prescribe in our company is predicated on the fact that we own the Bitcoin, we say we do. And so we publish proof of reserves. There’s a very easy view of it at xxi.mempool.space. You’re more than welcome to go there. Here’s a little screenshot of a view. We currently hold 37,229.7 Bitcoin in our proof of reserves. That is spread across five addresses. You can see there in the bottom right, you know, this is going to be a tiny view. I encourage you to go look at the screen yourself if you so want to. and that is our proof that we have the third largest Bitcoin holding in the world and as we acquire more we will prove it by adding it to this website and proving it on the Bitcoin blockchain. I will make proper filings and I will announce it. That’s really what I have to tell you guys for 21 at the moment. But we are very hopeful about an approval. We think it could come as soon as this quarter, which is Q3. And we’re excited about all the progress we’ve made. And in many respects, we haven’t even been allowed to get started. So Tether, myself, SoftBank, all the partners, the board, we are tremendously excited about what we can bring to Bitcoin in the capital markets and being allowed to play. Put me in coach. I’m ready to play today Someone clip that send it to the SEC All right, enough about me. On to normal parts of the show. Give me feedback if you guys like the updates on my business. If you don’t, I’m sure some of you aren’t a customer of mine, and you’re like, what the fuck? I’m sure some of you found that really valuable. I’ll see what the comments have to say. But almost half the questions that you guys have are about my companies, which I really respect. You guys are so supportive of me, and I really, really appreciate it. So, trying to engage a bit more there. I don’t want to look like a salesman, though. I really don’t. Like, that’s not what this show’s about. So, give me the feedback. Okay. Chapter one of this show, our parents are fighting. Who are our parents? Donald Trump, Janet Yellen, Scott Besson, Jerome Powell, the U.S. Treasury, the Federal Reserve. Those are our parents. Listen, if your parents are fighting in front of the family, I would say that means things are going poorly. Family is stressed out. Someone is sick. There’s financial woes. If your mom and your dad are screaming at each other and fighting in front of the kids, no good. I would say that would mean a relatively unhealthy household, okay? That’s what feels like is happening for the United States having the President of the United States the US Treasury Secretary The old chairman of the Fed the current chairman of the Fed all kicking and screaming and food fighting and throwing shit at each other It’s embarrassing. It’s a mock and to me it it just feels like classic parents fighting you know listen I don’t know how you guys grew up When I grew up, the couple that was fighting on the playground when I got out of middle school or when I got out of elementary school, it was embarrassing. Kids were embarrassed, like, dad, mom, what are you guys doing? At least do it in private. That’s how I feel as an American right now. It’s hilarious. And, you know, at the end of the day, Bitcoin doesn’t care. But to me, it’s signaling end of an empire, change of the guard. The post-1971 dollar is dying, OK? let’s kick off our parents are fighting with this tweet honestly I can’t even believe this one but I’ll read it just for the humor holy shit Janet Yellen took a shot at Scott Besson and he absolutely buried her okay I’m going to read the screenshot This is a question to Janet Yellen. Do you talk to Treasury Secretary Scott Besant at all? She replied, no, I don’t. He has succeeded in undoing everything that was a priority of mine at Treasury. This goes well beyond China. And she goes on to list all sorts of things that she thinks Besant is doing wrong. Besant, when asked to comment, said, Sadly, these bitter comments come as no surprise. Secretary Yellen’s greatest priority, when she actually visited the Treasury building, was leaving me and the American people with the largest deficit to GDP in American history when our country was not at war or in recession. The Trump administration and I have engaged China in a respectful but fulsome manner rather than being lectured and cowered. I couldn’t even tell you what Secretary Yellen’s China policy was aside from consuming beer and mushrooms. Mike, drop. Mike, drop. What? Guys, on what planet are we living in? Is this Earth, or has Elon successfully teleported us to Mars? This is the current Secretary of the U.S. Treasury, the CFO of the United States of America. Just dunking and shitposting the former chair of the Fed? and the former US Treasury Secretary? Are we kidding right now? Are we kidding right now? I couldn’t even tell you what Secretary Yellen’s China policy was aside from consuming beer and mushrooms, shitposts, dunked on, mic drop. What? Okay, next. This was Besant last week on Fox Business. Listen in.

Scott Bessent [00:21:06]: The Fed is the house. It’s a casino. The casino doesn’t lose money. The players are the ones that lose money. And I’m not going to comment. I’m like you. I don’t really understand what’s going on with the size, the scope, the cost of the building renovations. One can ask, was it a good idea to start the renovations for an enterprise that’s losing $100 billion a year? So 100 billion because of a mismatch in the bond portfolio from the short-term rates. And I think that the Fed should undertake an internal review because I think all the other operations are endangering its independence of monetary policy. As I said, monetary policy should be kept independent. It’s a jewel box, should be walled off. but by undertaking all these other activities, then you come in for criticism, just like you’re seeing here, that might impinge on monetary independence.

Jack Mallers [00:22:17]: The Fed is a casino. They’re the house. They always win. Who loses is the people. Direct quote. Direct quote. Do you guys understand the Fed is the central bank for the US dollar, for the World Reserve currency, and the United States is going to great lengths to undermine any ounce of credibility that they’ve ever had? Can we just appreciate what we’re living through right now? Let me put you this way. If I were to tell you, let’s say, whatever, a year ago, five years ago, 10 years ago, yeah, so the US would start rotating out of being the world reserve currency. The post $71 is destroying America. It’s destroying its culture. It’s destroying its ability to manufacture. It’s destroying its reproduction rate. It’s destroying its metabolic health. It’s destroying everything about the great country that was. And so they’re going to rotate out of it. You’d ask, well, how are they going to do that? Well, Trump’s going to win in the popular vote with a mandate to stand up for the everyday American that’s been getting crucified on the other side of asset inflation. So his administration is going to go to great lengths to tarnish any reputation that the Fed ever had. buy into the fact with the American people that the Fed shouldn’t exist, that they are the house, they are the casino that always wins. They need to be eliminated. Their role needs to change. We all of a sudden need to audit them. The US and the Fed are going to get remarried, spark a new relationship with new rules, and they’re going to send rates and market as if rates need to go as close to zero as possible. You’d go, yeah, that sounds That sounds reasonable. I mean, there’s no way around it besides dollar debasement. And, you know, we’re living in fiscal dominance. The U.S. government’s in charge. $37 trillion of debt. There’s not a lot you can do. But to be living through it? Like, that’s literally what’s happening. Our government is in so much debt. No one else’s opinion matters. You have to debase your way out. Oh, that guy’s not on side? That guy doesn’t like our plan? Okay. Goodbye your reputation. Goodbye any credibility you’ve ever had. Actually, goodbye to the independent central bank that was. It is a get with it or get out of the way. And what is get with it? Get with it is the dollar has to get weaker. Let me shut up because I’m not the only one saying that. Next video. This was the CNBC reporting that the president of the United States was headed over to the Fed to demand what rate he wanted. Sorry, I’m just gonna say that again. This is CNBC, national news in the United States, reporting that the President of the United States was going to walk over to the Federal Reserve and demand how much, how expensive he wanted money to be.

Kelly Evans [00:25:41]: of his former economic advisor, Ben Bernanke. That was as Fed chair. Eamon Javers is in Washington with a closer look at this trip. What are they telling us is going to happen on this trip, Eamon? What’s it for? What’s he going to look at? Who’s he going to talk to?

Eamon Javers [00:25:55]: Kelly, we’re expecting something of a spectacle here this afternoon as the President, who’s been harshly critical of the Fed chair, travels to the Federal Reserve to view their office building construction. That is a project that’s been going on for years in Washington, D.C. It is well over budget. Take a look at some of the pictures there. You can see the headquarters building, the adjacent building on Constitution Avenue, and a third building behind those two, which has already been completed. But you can see this is an enormous It’s disrupting a couple of city blocks in downtown D.C. It has been for years and years. Did the research on this. The earliest inspiration for all this came back after September 11, 2001, when the Fed thought it needed new security and then kept adding and adding and adding to the scale of this project until it gets to be what you see today. The President’s been harshly critical of the cost overruns for that project, which the Fed has acknowledged. But Kelly, we don’t know what we’re going to see this afternoon. We don’t know who’s going to be greeting the president to tour him around the site. We don’t know if we’re going to see a handshake between Jay Powell and Donald Trump. We don’t even know exactly who’s going to be accompanying the president on this trip. But we do know that it puts more pressure on Jay Powell. It emphasizes the president’s point that Powell is irresponsible with funds, whether that’s the funds rate or whether that’s the funds to do the construction. And it continues to put pressure on Jay Powell, who the president likes to have some leverage over. We saw Secretary Besant, the Treasury Secretary, yesterday sort of dial back a little bit these calls for Powell to resign.

Jack Mallers [00:27:25]: All right, I know the video is quiet. I couldn’t find a lot of video. But the point is CNBC reporting that our president was going to walk into the Fed building, demand how much money should cost, and just slap around the Fed. Just, again, tarnishing the credibility. And the CNBC is reporting. They’re saying the whole thing about budgeting this building is about questioning the Fed’s competence. Besant had a comment earlier about how incompetent they must be over there. It’s that these guys are stupid. These guys are stealing from you. They’re the casino that always wins. Their role needs to change. They need to be audited. I need to walk over there and start making the decisions. It’s just undermining, undermining, undermining. Again, think of a playground. Parents just fighting, kicking and screaming at each other. It’s just embarrassing. At this point, it doesn’t even matter who’s right or wrong. It’s the fact that they can’t come to an agreement behind closed doors just goes to show how bad it really is in the house. Imagine how bad it is in the parents’ bedroom if they have to take it to the kids’ playground to fight. You pick up what I’m putting down? Okay. So what did President Trump do? He literally walked over to the building, got in front of a camera, and embarrassed the shit out of the current sitting Fed chair, the chairman of the Central Bank of the World Reserve Currency of the United States of America. I mean, I know you guys have probably seen this clip. We got to watch it. I mean this was I Couldn’t believe my eyes pick your jaw up off the floor type shit

Donald Trump [00:29:02]: Taking a look at what’s happening, and it’s a it’s a tough construction job there building basements where They didn’t exist or expanding them and a lot of very expensive work. There’s no question about it and Tim has been with me for a long time, and you’re in charge

Tim Scott [00:29:18]: of the committee. Indeed, one of the reasons I wanted to see it was the overruns of the expenses, wanting to figure out why.

Donald Trump [00:29:26]: So we’re taking a look, and it looks like it’s about 3.1 billion. It went up a little bit, or a lot. So the 2.7 is now 3.1. I’m not aware of that. Yeah, it just came out.

Jerome Powell [00:29:41]: I haven’t heard that from anybody, the Fed.

Donald Trump [00:29:43]: Yeah, it just came out.

Jerome Powell [00:29:48]: I’m not excited about 3.1 as well. 3.1, 3.2. This came from us?

Donald Trump [00:29:53]: Yes. I don’t know who does that.

Jerome Powell [00:29:58]: Are you including the Martin renovation? You just added in a third building is what that is. That’s a third building. It’s

Donald Trump [00:30:06]: a building that’s being built. No,

Jerome Powell [00:30:07]: it was built five years ago. We finished Martin five years ago. It’s

Donald Trump [00:30:11]: part of the overall work. So we’re going to take a look. We’re going to see what’s happening. And it’s got a long way. Do you expect any more additional cross-over runs?

Jerome Powell [00:30:25]: Don’t expect them. We’re ready for them. But we have a little bit of a reserve that we may use. But no, we don’t expect to be finished in 2027. We’re well along, as you can see.

Donald Trump [00:30:38]: Nice to take these off, everyone.

Jack Mallers [00:30:45]: Again, fighting in front of the kids sends a message. If they really cared, they could take that, go in the attic, go in the backyard, go in your bedroom, close the door, hash it out like adults. That wasn’t about understanding what the total budget was. Of course it wasn’t. What was that about? Undermine the Federal Reserve, undermine what they do, undermine why they exist, imply they’re stupid, imply they’re incompetent, imply things need to change. I don’t know how else I can say it on this show. We are living through a monetary regime change. The post $71 is dead. It’s over. It’s killing the United States of America. We walk through it every single Monday at 6 p.m. Eastern. Don’t get it twisted. There’s going to be a lot of memes. There’s going to be a lot of jokes. There’s going to be a lot of shitposting. What you are seeing is the death of an empire. What you are seeing is an active remaneuvering of capital flows, of monetary relationships, and ultimately monetary order around the world. The US dollar as we know it is functionally changing. They are maneuvering themselves to a point where it is politically okay to restructure how the Federal Reserve works. Now, don’t get it twisted. Am I against that? Audit these motherfuckers. Are you kidding? I can audit Bitcoin every 10 minutes for free on my laptop. But do not misunderstand what you are living through right now in the profound implications that it has. It could not be more clear. Next. Okay. Right after they went stormed into the Fed building, first of all, the US Treasury says the old US Treasury ran up deficits, and their China policy was beer and mushrooms, then goes on Fox and says, the Fed’s the casino. The House always wins. We need to audit them. And actually, they probably shouldn’t exist. Let’s shut the casino down. Then the president walks over just to humiliate the Fed chair. After all of that, we think the Fed is going to cut rates. US Treasury Secretary Besant, the Fed should be cutting rates now. Trump comes out and says, Powell’s a good man. I like him. He’s gonna cut rates. Pathetic. Pathetic. Our parents are fighting. The empire is collapsing. Pathetic. Pathetic. Unbelievable. And if you zoom out, whether you think Trump is right, or Powell’s right, or the left, the right, the up, the down, the this, the that, No human, no government, no company, no nation state should be responsible to manage our time and energy as a collective species. How is this not enough for people to realize? There is no one trustworthy enough. There is no company, no nation, no any, no bank. Money is our time and energy in an abstracted form. It is the thing that we all work to acquire and then later exchange for the things that we need in life. Nobody should be responsible managing that. Nobody. This is a sitcom level joke. If you were to play these clips and tell me it was Saturday Night Live, I would believe you. Hand to God, I swear to you I would. That had to have been a joke. That is the real timeline we are living through right now. outrageous next to parlay all of that next chapter you can’t sell anything if the dollar is strong direct quote from the president of the united states obviously i’m talking about trump but just let this sink in for a second you can’t sell anything if the dollar is strong That’s a quote from the sitting president of the United States of America. Now, let me play you this. Of all the clips I’m playing you today, and one of them was the president openly humiliating the sitting Fed chair on camera, this, to me, was the most jaw-dropping. Take a listen.

Fox News Reporter [00:35:28]: Why has the dollar fallen so much, and are you concerned about that?

Donald Trump [00:35:31]: Well, you know, I’m the person that likes a strong dollar. But a weak dollar makes you a hell of a lot more money. Hate to tell you. I don’t know if you study it, but I study it. And if you look at the yen… I went to

Fox News Reporter [00:35:44]: Penn and Wharton so I know this.

Donald Trump [00:35:45]: You understand. Oh, you did go to Penn. Well, that means you’re a smarter guy than I even thought. And I know you’re smart. So, when we have a strong dollar, one thing happens. It sounds good. But you don’t do any tourism. You can’t sell tractors. You can’t sell trucks. You can’t sell anything. It is good for inflation. That’s about it. And we have no inflation. We’ve wiped out inflation. But it’s an interesting question. So I will never say I like a low currency. But you remember the battles I had with the yuan, with China, and with Japan. Japan being the yen. They always wanted a weak currency. They’re trying to get a weak currency now. Now, it doesn’t sound good, but you make a hell of a lot more money with a weaker dollar. Not a weak dollar, but a weaker dollar than you do with a strong dollar. And the first people that are going to notice it are the manufacturers of trucks and various other things. Like, look at Caterpillar, how well they’re doing now. When you have a strong dollar, you can’t sell anything. It’s only good for inflation. And it’s good psychologically. It makes you feel good. But with that being said, I love strong dollars. But you make your money with a currency. And I had so many different fights with President Xi, with — I mean, between Japan and China. All they want to do is have a weak currency. They’re always fighting for a weak currency. And that’s how they really dominated over the years. So when I see it down there, I don’t lose sleep over it, let’s put it that way. In fact, sometimes I go to sleep very happy. You understand.

Jack Mallers [00:37:33]: Uh, guys. You can’t sell anything with a strong dollar a Strong dollar just sounds good. It doesn’t achieve anything. I Don’t want a weak dollar. I want a weaker dollar.

Jack Mallers [00:37:53]: Hello. Is there even a point to the show? Let’s close the show. It’s a wrap. There it is. There it is. It’s over. What do I have to prove to you guys anymore? They’re going to weaken the dollar against golden Bitcoin. And he clearly is talking about bringing back the ability to produce our own stuff to America. You can’t sell things. And what if I said time and time and time and time and time again? If you are the world reserve currency, it gives artificial strength to your currency. Why? Because everyone naturally has demand for it. They have to use it. So there’s persistent demand for your money, which gives it artificial strength. Artificial meaning it is only that strong because of its reserve status, not for any other reason. Okay? Because of this exact reason. So we run twin deficits and other trading partners of ours run trade surpluses. It also gives artificial strength to your assets. If someone like China is running a trillion dollar trade surplus, they then come shopping in the United States. They have to take the trade surplus and come shopping back into the United States of America. Their trade surplus is like US store credits. At the end of the day, when they have a bunch of profit from being the world’s factory and exporting stuff to countries all over the world, they just have a bunch of U.S. store credits, and they have to spend these U.S. store credits. So what do they get? They buy a bunch of the Mag-7 stocks. They buy a bunch of real estate. They buy a bunch of farmland. They buy a bunch of gold. But the reason the U.S. wealth gap is what it is is because we have an artificially strong dollar. which disables people from having jobs in this country. Because you do not have factory jobs. You now have things like the Rust Belt. Because manual labor, manufacturing jobs, the ability for us to produce things in this country, all this country has is the ability to produce technology, produce public, you know, we’ve hyperfinancialized. So if you’re on Wall Street, if you’re a Mag-7 founder, it’s great to be American. If you’re in the middle of America, if you’re part of the Rust Belt, your job is now in China. The strong dollar disables your job. It ruined. It stole your job. That’s the wealth gap. On the coasts, Silicon Valley and Wall Street have made tons of money because China’s bidding up their assets, asset inflation. If you’re in the middle of America, look at the election results, guys. Where did Trump struggle? New York, California. Where did Trump win the popular vote? Everywhere else. And it’s not a slight against Wall Street or Silicon Valley. It’s the reality of what we’re living through. And just how unsustainable one country, one central bank, one person is at controlling how much our time and energy should be worth and how it should be exchanged. It defies the very property rights we have to be born with. So now, America is lying on its deathbed. It has to be resurrected. We’ve exported our culture. We’ve exported our jobs. We’ve exported our manufacturing. We’ve exported our health. We’ve exported our reproductive rate. Everything has left this country except the ability to hyperfinancialize a company and sell its stock to China. And this is the path to building America back and resetting the world on neutral money. When the President of the United States gets back from the Federal Reserve building after humiliating the chair, in ruining any credibility he has, in destroying his reputation, in demanding the Fed gets audited, in demanding the Fed is repurposed, and then walks right back in front of the media and says, we cannot do anything on a strong dollar. A strong dollar, in fact, just sounds good. That’s it. The future is a weak dollar. What am I going to say, guys? What am I going to say? Us at the Jack Mahler Show and all the listeners that have been with me for a while, we’re never the people, ever. We would never say, I told you so. That’s just not who we are as people. But if we were, we would say, I told you so. Next. On the idea of us exporting everything away, the inability to produce our own stuff, This tweet from Luke Groman, let me get my head out of the way, big deal. Critical signposts starting with the common investing saw that the US military ultimately backs the USD. This was 12 days of medium intensity combat against a non-peer adversary. This is because of USD Dutch disease, which is who needs factories when we can print dollars. Okay, this is in reference to the rare earths. This was in reference to the idea we talked about on this show, that China was the one that stopped war in the Middle East, that the US cannot sustain war for a long period of time right now because we do not have rare earths. And the broader concept is the US cannot sustain itself because it can’t produce its own stuff. It is now wholly reliant on other people to export stuff to the United States in exchange for these printed pieces of paper. And a lot of our trading partners don’t want our debt, don’t want our paper, they want gold, they want Bitcoin, that couldn’t be more clear, and we all of a sudden, it’s not up to us whether our military is involved for a sustained period of time. Is it true that China was the one that didn’t want war in Middle East, not America? Seems like that is likely. Seems like that happened. But the bottom of this tweet is the signal here, guys. USD Dutch disease, meaning why would we build stuff if we can just print dollars? That’s the disease. That’s the Triffin’s Dilemma. is that you’re importing real shit in exchange for a piece of paper you print. Inevitably, that’s not gonna scale. One day, that’s gonna fail. One day, that’s not gonna work. You’re not gonna get rare earths and food and precious metals and industrial equipment and all the stuff that we consume. This microphone, my computer, this espresso, like all of the things that I consume. One day, the people that produce it aren’t gonna want the pieces of paper that we’re printing. And at this point, it’s a national security threat. At this point, it isn’t about left, right, blue, red economic policy, low rates, high rates. It’s about the United States is severely threatened at the moment with its inability to stand on its own two feet. And that starts at the currency level. If you want the ability to produce stuff yourself, the currency has to get weaker. We have to be able to invest locally and employ locally. Implied in that is the U.S. not being the world’s reserve currency. Like I said, it all starts with the reserve status. I could tell you how to solve the problem. I can’t tell you how to get reelected. Solving the problem is easy. Don’t be the world’s reserve currency. Gold, Bitcoin, devalue the dollar. All of a sudden, manufacturing jobs, manual labor jobs, we’re reproducing again, bringing back jobs out of China to the United States, but the dollar has got to go down a lot. Gold and Bitcoin have to go up a lot. Is it politically popular? They’re working on it. They’re working on making it politically popular. They’re trying to take Bitcoin and gold and put it in your 401k. They’re trying to regulate around it. They’re trying to politically maneuver headlines and stories about how the Fed is stupid and it’s their fault. They’re trying to make it politically popular. Whether it’s going to work or not, I don’t know, but that’s the solution, guys. Next. From Bloomberg, Russian precious metal sales to China hit 1 billion. I thought this was funny and I’d throw it in here because this isn’t a sale. China’s not buying gold from Russia. They’re settling trade with Russia in gold. Say that one more time. The American mind and the American media can’t wrap their head around what’s happening. Bloomberg reported that China is buying precious metals from Russia. No. They are settling trade between each other in a neutral reserve asset. And who knows how much of it is being settled in Bitcoin. We’ve already been reported on this show that they’ve explored settling in Bitcoin. This is settlement in gold. This is not purchasing from. We already know that China imported a thousand tons of gold last year. We already know that. The relationship between Russia and China when it comes to gold and the BRICS nations is about settlement. They’re settling outstanding balances in a neutral reserve asset, not the US dollar. The American media still has not wrapped their head around this, guys. Still has not wrapped their head around this. Next. On to AI. This chapter is called the post-1971 dollar must die for the U.S. to win A.I. A hallmark for the United States resiliency has always been being superior when it comes to technology. The biggest threat to that idea right now is if the U.S. can win the A.I. race. Part of this story is the fact that AI is not just software, it’s also hardware. Hardware bleeds into the idea that the United States has not been able to produce stuff and has not been producing stuff for decades. For decades. You need to have the ability to host massive compute to win the AI race. It isn’t just about who builds the most popular social network, who builds the best way to index the internet, which is Google. How do you find information? Oh, a US company. How do you connect on the internet? Oh, a US company. But AI brings back the physical realities of the world. Needing physical compute. needing data centers physically, not outsourcing it to another country. If we’re going to win the AI race, it has to be here. The AI race is so important because it cements, again, the idea that the United States has not been able to produce anything because of the Triffin’s Dilemma, because of its World Reserve status. And this is bleeding in to monetary policy and the reason Bitcoin is going to go to the moon. They’re going to have to print so much money to finance our ability to invest in Rare Earths, to invest in physical AI centers, physical. This is not a software game anymore. Let me explain. First of all, this tweet from Andrew Yang reinforces a lot of what I’ve been saying on the show. A partner at a prominent law firm told me, quote, AI is now doing what used to be done by first to third year associates. AI can generate a motion in an hour that might take an associate a week, and the work is better. Someone should tell the folks applying to law school right now. Again, my thesis, and I’ll keep reiterating it, I think AI empowers the artist, and it replaces the lawyer. What do I mean by that? Are all lawyers gonna have no job? No, not at all. Am I saying, like, I hate lawyers? No, not at all. I work with them all the time. We have a love-hate relationship. At the end of the day, I love them, okay? What I’m saying is, I believe that AI and Bitcoin are going to spark an art renaissance. Because the money is broken, being an artist, being a teacher, being a historian, these are uneconomic in today’s society. You cannot sustain a reasonable life being an artist, being a creator, unless you become Drake, unless you become Taylor Swift. The amount of growth that industries like accounting, legal and lawyers have seen is just out of pure desire to have enough income to sustain life. So if we fix the money and we enhance artificial intelligence to carry out the mundane tasks of everyday life, we can get back to creative work, to inspirational work, to passionate work. That’s my opinion. That’s my thesis. If you were to chart the lawyer profession since 1971, it’s growing like a hockey stick. And in a post-Bitcoin, post-AI world, I think we’ll have less lawyers and we’ll have more creative work. AI has no taste. It has no taste. It empowers the creator. It allows them to work faster. It allows them to work better. It allows them to work stronger. It replaces a lot of the mundane work. I’ve already told you guys how I’ve personally used different AIs. Have it analyze my blood work. Have it draft a legal document. Have it file my taxes. Food for thought. Food for thought. I think it’s a way better world, like a new art renaissance empowered by technology. That’s my thesis. One day I’ll give a talk on it. Now, on to some of the more practical news. I talked about how AI is a forcing function if the US is going to continue to cement its technological dominance and win the AI race, like it won the internet race. American exceptionalism in the US, this is so important to us strategically. We’re bringing in a physical component. It’s not just about software. AI requires hardware. Wall Street Journal, SoftBank and OpenAI’s $500 billion AI project struggled to get off the ground. Okay? We’re going to start to see this. There were tons of announcements when Trump got elected. For those that don’t know, Trump and SoftBank and OpenAI went to the White House. They announced this half a trillion dollar project. but there’s been some difficulty and if you read the story it’s in financing it it’s in decisions at the margins of where to put these listen the point is not to get over critical of anyone the point is there’s a lot of money and a lot of real work that has to go in to building stuff ourselves. It’s not going to be like flipping a switch. And by the way, I don’t think America is serious about building stuff itself until we do have manufacturing jobs, again, that are being paid as much as, you know, lawyers. We need less lawyers and more people building stuff here. And I think you’re going to start to see that equilibrium. You know what AI can’t do? Build physical shit. So is China winning the AI race? I think this is going to continue to be a headline. It’s going to continue to be a story, because the US has limits when it comes to the physical nature of producing stuff in the country. So not only this, but now Zuckerberg. This one’s from Reuters. Metta Zuckerberg pledges hundreds of billions of dollars for AI data centers and a super intelligence push. So we’re going to keep seeing these headlines, but what does this require? This requires employing people locally. That means the dollar needs to get weaker for this to be sustainable. If you have a strong dollar, then local labor is not economical. Again, this is a very long way of me saying the AI race is important. America needs to remain superior on the technology front. It has to win the AI race, but the AI requires physical power as well. The dollar has to weaken so that Zuckerberg, OpenAI, SoftBank, these people can employ folks locally in the country. You’re hearing it from the President of the United States. Lower rates as close to zero as possible. The feds reputation is dead. We’re re-architecting the global financial system I like a weaker dollar a stronger dollar only sounds good. We’re getting a weak dollar We have to start producing things locally Again and again and again and again again I’m saying the same message over and over and over but they’re now saying the quiet part out loud all these news articles all of Besson’s appearances on the TV screen all of Trump’s Media appearances walking into the fed building. They’re all telling the same story guys. They’re all telling the same story next Last just a Bitcoin section. This is Bitcoin news Slaying the killer bear. Well, okay for those that don’t know There was an OG Bitcoiner that supposedly sold 80,000 Bitcoin, which is worth over $9 billion at the time. Galaxy came out and reported that they executed this. It was the largest trade in Bitcoin history, blah, blah,

Jack Mallers [00:55:32]: Again, I don’t know if you guys follow me on Twitter, but I wanted to give you my take. I tweeted, the market absorbing 80,000 Bitcoin, which is around $10 billion, in days with barely a blip is a big deal. Bitcoin isn’t fragile. Armchair analysts warning about treasury sell-offs crashing Bitcoin might want to think again. It’s going to take orders of magnitude more than 80,000 Bitcoin to stop what’s coming. My point is what we hear all the time is that all these treasury companies are creating systemic risk in Bitcoin, and when they blow up, they’re going to crash the price. Well, newsflash. At 21, we hold the third largest position in the world when it comes to Bitcoin corporate treasuries. Micro strategies number one. We own 37,000. I just went over this in the beginning of the show. A little over 37,000 in our proof of reserves. Strategy over 600,000. All these other companies are too small to matter. If you were to take all of these companies and add them all together and say they all sold at the same time, it would be less than the 80,000 that was just sold all at once. The notion, and I call them armchair analysts, that say, ah yes, this looks frothy, this looks hype, this looks like tulips, this is surely going to blow up the Bitcoin market. Oh, riddle me, how the hell did someone just market dump 80,000 Bitcoin, we went down like four or five percent for a day, and we’re right back to where we were beforehand. Explain to me again if you have a brain cell how these treasury companies are causing systemic risk to Bitcoin seriously explain that to me This is a huge deal that Bitcoin could take ten billion dollars of sell to the face and not even flinch Because by the way guys a lot of money managers position their size based on liquidity There’s a lot of people with a lot of money to manage that only have 1-2% of their capital in Bitcoin because it was never clear how liquid Bitcoin was for them. How Bitcoin would fare if someone had to get off a lot of Bitcoin to the market. I guarantee you people are reposition sizing after this and the notion that treasury companies are causing systemic risk It is now an objective fact that you’re going to need orders of magnitude more than 80,000. So not 81,000, not 85,000, not 95,000, not 100,000. You’re going to need hundreds of thousands of Bitcoin to be sold at market at once for maybe Bitcoin to flinch. But we don’t even know that. I mean, sailors out raising billions of dollars, it feels like a week. The ETFs might have $100 billion under management by the end of this year. You’re going to need a lot of Bitcoin to stop what’s coming, and I just do not see it. The whole idea is there’s a supply-demand imbalance. I do not see the sell-side supply part that’s going to match the amount of demand. I just do not see it. And all the people that think they have it all figured out and the next bear market is going to be caused by the treasury companies. Guys, I’m doing the math. Go pull up, you know, whatever the website is, bitcointreasuries.net and add up all the companies that you think are going to blow up. They don’t come close to totaling 80,000 together. They do not come close. So I would say that these companies aren’t big enough to cause systemic risk to the downside, but they are important enough to cause pressure to the upside, because all of us together are buying Bitcoin at once. But each business carries independent risk. Each business has different leverage, different risk, different balance sheet, okay? It’s not like when one treasury company blows up, we all blow up. That’s not true. Like, 21 is managed incredibly well. We have no fears. And everything is public. File everything with the SEC. So just wanted to say that out loud. Thought it was a great example to prove how just ridiculous the idea that all the armchair analysts on TV have figured this bear market and bull market out. Fuck out of here. And then the last one, Pomp tweeted this screenshot from what looks like the Wall Street Journal. Why are stocks up? knows and he says there are more buyers than sellers I just want to remind everyone stocks aren’t up if you measure in dollars they’re up but us here on the Jack Mallers show we don’t measure in dollars this is stocks against Bitcoin in the last year down 32% this is stocks against Bitcoin in the last five years down 81% this is stocks against Bitcoin in the last 10 years down 99% So going back to the tweet, why are stocks up? Correction, they’re not up. Actually, they’re down a lot. Depends on what you’re measuring in. So it’s not that there are more buyers than sellers. It’s because they’re printing money. That’s why they’re up. Hot shot. That’s why they’re up. They’re not up. They’re not even close. Over the last 10 years, they’re down 99%. All right. That’s all I got for today. Let me pull up some Q&A. I’m running a little late. I do have to go. Let me check in with Dylan here and see what time, like what my hard stop is. But at the very least, we’ll get off some rapid fire Q&A. I’m not going to leave you guys hanging. I would never. I would never, ever, ever, ever, ever, ever. All right. Let me pull this up. Not for you guys to see. uh… okay let’s do as quick as we can some q and a uh… macro can you speak to how the impact of quantitative easing slash money printing in debasing of the u s dollar will impact the rest of the world slash countries in the commonwealth australia u k new zealand yes so i mean listen uh… first of all you know the u s exports inflation right debasing the dollar impacts everybody uh… I’m not gonna stick to just Australia, UK, New Zealand. I would say just more broadly, debasing the dollar either strengthens your local currency relative to the dollar or you have to debase as well. So what you typically see is QE across the board. A lot of countries, they rely on a weaker currency. Trump talked about it, like China, like Japan, to produce stuff locally. So U.S. is exporting this inflation, which is very unfair. It affects monetary policy locally, and it usually drives a wealth gap. It usually makes people poorer in real terms, not in nominal terms. It usually drives asset inflation. So I think the story across the board is pretty simple. Gold and Bitcoin are going to skyrocket because they are the escape valves. They are going to absorb all of the liquidity. What is neutral? What is hard and how hard is it to make more of what is accessible to everyone? Where is all of this capital going to flow into you? That’s the question at the margins. Maybe some real estate at the margins. Maybe some company stock but in swaths What’s the popular vote? it’s going to be gold and Bitcoin and that doesn’t matter where you live or who you are and And then, yeah, it depends how your local country is going to manage currency relative to the U.S. Like Switzerland, for example, the Swiss rank that’s been incredibly strong. The dollar is down against the Swiss like a lot, a lot. They have not changed monetary policy. It’s been one of the stronger currencies as of recent. And so but that compared to China, China is not going to let the U.S. weaken against They’re going to debase, debase, debase, debase, debase. They want to be the world’s factory. That’s been their position. That’s what they’ve been working on for decades. But the point is the U.S. is going to export the inflation. I think real rates are going to be negative on treasuries. The sucker at the table are those holding bonds, those holding dollars. And the winners are those stacking sats and staying humble. That’s really the, you know, that’s really all you need to know. It’s that simple. Listen, it’s politics, man. It’s politics. I mean, when did Trump appoint Powell? Almost 10 years ago? It’s politics. I mean, what happens behind closed doors and why these decisions are made, you know, is never for rational, common sense reasons, right? There’s lobbying, there’s Congress, there’s politics, there’s, you know, handshake insider deals. Why was Powell awesome 10 years ago and not now? I mean, the Fed is clearly political. Powell’s clearly political. When did Powell, you know, start despising Trump and, you know, hating him and trying to go out of his way to prevent him from getting reelected? Don’t know don’t care. This is kind of the point of Bitcoin is like You know people struggle with just how simple Bitcoin is as an idea like all you have to do is stay humble stack sats and exit the system and It’s a good question. You know, what what’s the background behind Trump and Powell’s relationship? I don’t know but The point is, I don’t have to care. That’s the best part. Lending question. Since Bitcoin’s price has historically been higher after any four-year period, could Strike offer four-year loans to reduce this risk, or is there a way to structure multiple one-year loans to achieve the same thing? Yeah, so listen, guys, I wish I could offer you a 30-year loan, like a mortgage, against your Bitcoin. That would be the best. I would love that product. The unfortunate reality is, you know, It’s tough to find someone to give me dollars to finance that for you. You know, at the end of the day, who’s financing a fixed rate 30-year loan to Americans? It’s the government, right? It’s not real. It’s not like a real rational economic actor that’s doing that because it makes sense. It’s the government that’s doing that to try and prop up the system. Like fixing a rate for 30 years? Where’s the dollar gonna be in 30 years? Is there even gonna be a dollar in 30 years? You’d have to be out of your mind to give America and all of its citizens that deal. But they do. And so the reality is, you know, what we do at Strike is we serve all you Bitcoiners and you guys want things like a loan against your Bitcoin and I go and find people that have lots of dollars that are willing to connect the two. and so right now the market I can only find these 12 months you know I think two years might be possible four years would be really challenging but I’m gonna stop at nothing and we’re just gonna keep going and keep going and keep going so I understand why you would want it

Jack Mallers [01:06:42]: totally get it and Yeah, I mean listen. I’m just gonna keep trying but the reality is you know a lot of the loan terms that you’ve seen in other markets from Chase Bank or from the US government They’re not rational. They’re not economical. They’ve been had they’ve gotten bailed out a kajillion times right so anyways Feature requests when is strike Australia launching very soon very soon I mean we’ve started to roll out support for the Australian dollar if you’re in Australia and using strike Download the latest version from the app you might have this support, and we’ve got some more stuff for Australia coming So we’re really excited we do support the US dollar for Americans the euro for Europeans

Jack Mallers [01:07:24]: the pound for those in the UK and the Australian dollar will be our fourth major currency to support and so we’re excited about that it might already be live for you and then I’ll make a formal announcement with some other features as well like potentially lending in a few weeks probably. Does Strike have an OTC desk? Yes. We call it Strike Private, but Strike Private is our white glove concierge service. If you’re dealing in really large size or if you have a unique problem that you need to solve, you just reach out to private at strike.me. It’s actually an incredibly popular service, so much so that we’re launching its own splash page and website. But the point is I’m on the strike private team. There’s a bunch of other strike members We’ll get on the phone with you enter group chats, whatever you need. We’ve had customers that need a loan fifty million dollar loan We’ve had customers that want to sell five hundred million dollars worth of Bitcoin So if you have a unique situation if you deal in large size, you want custom pricing you want our help You need help solving your problem private at strike dot me. You’re likely gonna interface with me I’m happy to personally help And we’ll solve the problem for you. So that is what I would call our OTC service. It’s a white glove concierge personal touch service where a Bitcoiner will get on the phone with you. And obviously at strike, there’s just nothing we can’t do at this point. We can help you buy a lot of Bitcoin. We can help you sell a lot of Bitcoin. We can help you borrow against your Bitcoin. We can help you send Bitcoin into another currency on the other side of the world. We can help you pretty much do anything that your heart desires. And that’s why customers reach out to us. So private at strike dot me. And then last one before I got to go is a 21 question. What are your thoughts on MicroStrategy’s stretch offering? Would 21 adopt something similar? What alternative monetary vehicles may 21 offer that are better at optimizing Bitcoin yield? Listen, um, I can’t talk about the future tense of 21 right now given where we are in our process in the quiet period So I cannot really go out of my way to sell the future of 21 at the moment You guys know where our proof of reserves is, you know How much Bitcoin we have when I have something to announce that will be filed publicly and I will announce it on Twitter and So at the moment that’s about as much as you’re gonna get out of me, but trust me It’s what’s in the best interest of all of us and then as far as micro strategy I mean listen what I think sailors doing is cool. It’s building a yield curve on top of Bitcoin He’s again trailblazing so There’s a lot of things I’m kind of curious to watch and see what works and what doesn’t but what I will say on the 21 side as it relates to whether it’s Metaplanet or micro strategy or anyone I would say that at 21 we feel like there’s nothing we can’t do That’s I’m allowed to say that and what I mean by that is if you look at our board our board consists of tether Softbank and myself that is some of the best and brightest and most successful builders in Bitcoin over the last 15 years and that is one of the greatest technology investors of all time, so At the end of the day, we’re all competing over access to capital, ability to raise that capital and an ability to produce value as a business, build products, build cash flow. So I would say between Tether and myself, we have a tremendous amount of experience and we’ve had a tremendous amount of success in building high growth, high margin cash generating businesses in this industry over the last 10 to 15 years. And then the combination of tether and soft bank. I mean we have access to deep deep deep pools of capital So I don’t know if there’s a more talented board and talented leadership team when it comes to Bitcoin in the capital markets our experience The access we have to capital our ability to produce value as a company kind of you know my tagline and what I’ve cleared with my lawyers is. You know we feel confident that there’s nothing we can’t do now what we decide to do and when you know we’re excited to hopefully get approved someday and show you guys the proof of work but. The team we’ve put together, the balance sheet we have already, the access to capital through Tether, SoftBank. I mean, we’re very excited. So I think there’s just, again, there’s just nothing this team can’t do. There’s a lot of capital to access. There’s a lot of products we’ll be able to launch. There’s a lot of products we’ll be able to build. We’re excited about the future prospects of having cash flow and what that will mean for us. So yeah, exciting times all around, but it all starts with the ability to list our stock on stock exchange. And that’s where we are now. We’re just focused on getting that done. Cool? Caprendo? Capiche? All right. I’m late, per usual. Becoming part of my personality, that’s not a good thing. So I’m out of here. Appreciate you guys. Much love. Give me some feedback, OK? Give me some feedback. I introduced a chapter on striking XXI. If you guys want that to be a weekly thing, let me know. You want me to move it to the end. You want me to remove it altogether. Let me know. But I noticed not as many strike questions, so that’s good. Not as many 21 questions, so that’s good. So leave the feedback. Don’t be shy. You can’t hurt my feelings. I just want this to be a kick-ass show. So just be honest with me. I’m a man now. So with that, I’m out of here. Much love. Stay humble. Stack sats. They’re debasing the dollar. Don’t be fooled. Peace out.

Signup For Non-Investment Grade Email Updates

US Empire Cracks; Bitcoin Rises (Jack Mallers Show EP 75)

Meta Data

Table of Contents