Yo, welcome back to another episode of the Jack Mallers Show. I am your host, Jack, and you are listening to yet another edition of Mailbag Monday. Every Monday, 6:00 p.m. Eastern, we go live. We talk all things Bitcoin, macro, and the world at large. How are you guys? I hope you're well. Today, the title of the episode is Europe is screwed.
A little dramatic, but not by much. What we're going to delve into today is: as yields are soaring and everyone's expecting the first body to drop and the financial crisis to hit, what if I told you Europe was going to be first in the Euro system? Not only is that crazy, but what if I told you that this is all the United States' plan, and that Scott Bessent has been planting the seeds to break apart the Euro system, secretly undermine Germany and their exports as a way to reshore America and reorder the global monetary system. Now, this is nothing I'll ever be able to prove as fact, but as yields are soaring, as France's bond market is imploding, I figure why not take a closer look. If anything, it'll be fun. Also, I'm living in Europe for at least a month coming up soon, and I love Europe. I love the people. I love Bitcoiners, and so it felt timely for me as well.
Okay, real quick. Don't mind my voice. I apologize for the scrappiness, and I usually, I would assume you guys will notice I'm a little lower energy. For those that didn't see the Ask Jack episode we released yesterday, it is because I came down with the flu. I'm feeling much better. I'm on the up, but it's not totally gone yet. So, just a heads up so you guys are aware. That's what's going on. Hopefully you can stomach through my voice, and you know if I got some sniffles going on. But man of the people, you got to show up. Consistency is king. This is a revolution. We don't have time to be sick. Okay, with that, let's hit this. Let's get this show on the road, ladies and gentlemen. Time stamp this bad boy. I'm talking to you all at a Bitcoin price just shy of $86,000, at $85,960.
That puts Bitcoin's market cap at $1.73 trillion US. Our all-time high remains at 126,080 bucks. We are 31.8% off that all-time high. We made it on October 6, 2025, which is tomorrow, a year tomorrow, which means it's been 364 days. Not quite a full calendar year, but pretty much. The last block height mined since I hit stream was Bitcoin block 970,086.
Okay, first and foremost, let me take a step back before we get into Europe. Last episode I did a deep dive into fiscal dominance, into why the Fed hiking rates is actually adding to inflation. And it's stimulative because of all the debt that the US has and all the interest that they pay on that debt, and how this isn't sustainable, and whether the Fed cuts rates or it hikes rates. No matter what, we are amidst a sovereign debt crisis. That's why yields are soaring, and there's going to have to be some dollar liquidity, some stimulus provided in order for Pax Americana and the US government as we know it to sustain itself. Bitcoin is arguably sniffing that out as it's approaching 90K. It seems there's a real chance that the bear market is over and that the bottom is in. We went into that in detail. If you don't know what I'm talking about, feel free to watch last episode after this, but I will briefly recap because it leads very smoothly into why although the US is in some pain right now, Europe's in far more pain, France specifically.
So, as a recap, the Fed hiked for the first time since 2023, last month. Since then, 10-year Treasuries have been on a tear. I mean, even before then, 10-year Treasury yields, sorry. Bonds down, yields up. That's bond math, as we've talked about. The 10-year Treasury yield is now over 5.3%. It just won't stop going higher, which means demand for bonds and lending to the US government won't stop going lower.
Mind you, I've told you guys that the 10-year is the instrument that a lot of consumer credit is priced off of. This is how banks help finance your mortgage, help finance your car, help finance your credit card. And so if you look at the 30-year mortgage rates now in the United States, it is over 7%. That is insane, especially heading into midterms. And the 10-year yield is at its highest point since, now when I made this slide it was 2007, but after as high as it got today, this might be the highest since 2002. So it just keeps getting higher, to the highest since, to the highest since, to the highest since.
Now let's just quickly recap. Why does the Fed hike rates? What's the point? Why did they do this? Well, in theory, their theory, Keynesian theory, is that if you hike rates, that makes borrowing money cost more, which should in theory reduce spending because when there's less credit, there's less abundance of fiat, there's less people getting bonuses, building new products, buying more homes, there's less economic stimulus that should theoretically reduce spending and consumption, which then should have an impact on prices, which should bring prices down. And this is a central banker's way of fighting inflation, essentially planning the cost to create more currency, to create more credit, to create more monetary abundance.
Okay, so this is the theory. Now, the problem that I explained last week is, okay, the Fed is hiking rates to punish and restrict borrowers of fiat credit. Okay, who's the largest borrower of fiat? The US government. The US government is over $40 trillion in debt now. And their interest payments alone on that pile of debt is over a trillion dollars a year. And this is what I say: all this debt is stimulative because they're actively paying out over a trillion dollars into the economy every single year. And so when you raise rates, that $1 trillion number is going up.
Mind you, the US government, actually, I get to this in a later slide, but the US government, you can think of their debt as just a pile of individual loans. And those individual loans were initially issued at lower rates, but they need to be refinanced. So the debt will work its way from, the US government deficit will work its way from $2 trillion a year to $3 trillion a year even if the US government doesn't spend more money through certain programs or through military efforts, and even if the Fed doesn't hike rates, because the debt alone, just being refinanced at current rates with the 10-year at 5.3%, with the Fed after their latest rate hike, I mean, the US government is currently spending, I think it's under 4% for its cumulative debt, and as they refinance throughout the rest of this year, I mean, that number is going to go drastically higher, and we could see the deficit explode from 2 trillion to 3 trillion. So this is a huge problem.
Obviously this is what we call fiscal dominance. This is when hiking rates backfires on a central bank that's trying to fight inflation because you can't fight inflation when the largest borrower, who's $40 trillion in debt, is the US government and they're paying out trillion-plus dollars of stimulus into the economy. And the higher you raise rates, the more stimulative the government is to the economy. So sure, you're maybe slowing down economic growth, but you're stimulating the public sector paying out into the economy.
Now, this is a very core idea that I need you guys to understand. It's, you know, once you understand this about fiscal dominance, you can't unsee it. It's one of those things. It's walking yourself into this giant aha moment like, 'Oh my god, I totally get it. This system is screwed.' So, understand what is called the real rate. So, the real rate is what borrowing money, what the government borrowing money actually costs them. So you take, call it the 10-year yield, which is now, we know, I put around 5%, you know, because what if it goes back down, you know, 10, 20 basis points, it doesn't really matter, so call it at around 5%, and then expected inflation at around 2%. Okay, so right now inflation's actually like 2.2, I believe, and the 10-year's at 5.3. So these are fairly accurate. Now, you take the 10-year yield and you subtract expected inflation, and you get what's called the real rate. And that's 3% right now. And this is the highest real cost of borrowing since 2008.
Okay. Now, why does this lead you to such an aha moment? Well, to simplify fiscal dominance and the sticky predicament that the government is in, imagine a man on a treadmill. Very simple. Hopefully you guys have experienced this yourself. If not, hopefully you've run in real life. If not, get your fat ass off the couch. Just kidding. Just kidding. Okay, imagine a man on a treadmill. Okay, the pace at which this man's legs are moving is what is called real growth. Okay, the pace at which the treadmill is moving is called the real rate on the debt. So let's say real growth is 2%. And let's say the real rate is 3%. As we just described, the treadmill is moving faster than his legs. We all know what happens being on a treadmill. If the treadmill is moving faster than you are, you move backwards until you run out of treadmill and you fall and you hurt yourself.
Okay. Now, the point of why this is such an aha moment is: what does raising rates do? When the Fed hikes rates, they one, speed up the treadmill because they're increasing the cost of the debt, right? The treadmill is running, the speed of the treadmill is operating at the real cost of the debt to the United States. So, as the 10-year yield goes higher, as interest rates go higher, the treadmill is moving faster. Now, simultaneously, raising rates also slows down the human's legs, because it slows the economy down. So businesses at higher rates, businesses are borrowing money less, people are buying less, mortgage rates at over 7%. People are buying housing less. Housing market is struggling. Economic activity and new businesses and employment and all this stuff. So taking this analogy, you're slowing down the legs of the man on the treadmill and you're speeding up the treadmill. I mean, that sounds like hazing. That sounds like torture. And that's how you get somebody hurt, knocked off the treadmill, and with a broken leg. And that's the position the US government is in.
Now, on top of that, as I mentioned earlier, you have to understand that the US government's $40 trillion pile of debt is literally a pile of individual debt instruments. It's not like one giant $40 trillion line of credit or $40 trillion Bitcoin-backed loan. It's individual, right? They sell Treasuries. They sell bonds. They sell bills. There's a pile of debt made up of individual loans. Now, these loans need to be rolled over. They expire. And so as the borrow market gets more expensive, so right now the 10-year at 5.3%, the Fed is hiking rates for the bills market, the 30-year, the 20-year, all of these things are highest yields since 2002, 2007, 2008.
As the government, the US Treasury, Scott Bessent, is continually needing to refinance his pile of debt, he's going from maybe paying 2% to then when he refinances it now paying 5%. And so as the US government chews through over the coming years refinancing its pile of debt, that's how you get a US deficit that right now is at $2 trillion but explodes to 3 trillion or 4 trillion with no new spending from the government, no new Fed hikes. The wars could stop, hiking could stop, the government could stop spending, but the debt could still explode because the rates now are far higher than when they issued the debt, and refinancing it is going to be incredibly expensive.
Okay, so not only is the treadmill moving faster than the government running on it, but on top of that, the Fed is hiking rates, which increases the treadmill, and then refinancing the debt increases the speed of the treadmill. So you kind of have this what we call debt spiral where every single lap makes the treadmill faster. So, the Fed hikes rates, that drives costs up, which drives a bigger deficit, which means you have more debt to sell, which makes borrowers want more, which drives rates up, which then drives costs up. And this feeds on itself, and it feeds on itself, and it feeds on itself until you have an utter and complete collapse.
And then you ask yourself, well, why did they raise rates in the first place? Remember this, the earlier slide I put before you? This is their theoretical way to fight inflation. So, if the people don't want inflation, this is the conundrum I've explained to you guys over and over and over for the last year. And that all of us Bitcoiners, you know, I want a shirt that says Bitcoiners were right. Bitcoiners were right. You see, there's a fork in the road. Either inflation is here to stay and they need to devalue debt to GDP, they need to devalue the currency and they need to print their way out. So everything in your life will inflate substantially, including Bitcoin. That's how you see a $20,000 per ounce gold price. That's how you see a million dollars per Bitcoin. But your eggs are going to go up. Your gas is going to go up. Everything in your life is going to go up because there's destruction of the purchasing power in the currency and devaluation of debt to GDP.
The other option is that the US government just flat out defaults because the treadmill is moving substantially faster than they can run and it just keeps getting, it feeds on itself. Every single time it spins it gets faster and it gets faster and it gets faster and then the government's going to fall and face plant and get knocked out and Western civilization as we know it will cease to exist. Those are the two options. I'm being dead serious by the way. I'm, this like no part of this is dramatic whatsoever. This is what we're living through.
And so, you know, another way, another simplified analogy to think about this is normally raising rates is thought of by Keynesian economists and central bankers to be pouring water on the fire that is inflation. It's slowing borrowing, which means less money is leaving the economy, which means pricing cools down. So if inflation is like a fire that is continuing to get hotter and hotter and bigger and bigger, raising rates again, Keynesian theory, central banking theory, central intervention, central planning, it's putting fire out with water. Now the problem is if the government has $40 trillion of debt, then you're no longer pouring water on the fire. You're pouring gasoline on the fire and you're making it worse.
And this is what we've been saying on the show. Somehow, you know, college dropouts and Bitcoiners and stay humble and stack sats stackers are smarter than politicians and central banking wanking government officials. But here we are. I mean, shadowy super coders rule the world. We are the ones that unfortunately have to fix this mess that these people have created. I don't know how they don't know this. I don't know how they can't do simple accounting and simple math, but when the government's $40 trillion of debt, by hiking rates, you're actually pouring gasoline on the fire. You're making it bigger. You're making it worse. You're expediting towards an inevitable catastrophe.
So fiscal dominance, summarized very cleanly, is when what is the expected normal path is that the Fed controls monetary policy. They deem when it's appropriate to quote-unquote fight inflation or allow and encourage inflation. I kid you not, inflation's never been zero. The target's never been zero. It's up to them when to stimulate the economy and set your price of money to low and easy to create more, or harden monetary policy and make it restrictive and make it harder to create currency, which theoretically strengthens the dollar, which then should bring prices down. Normally, the Fed sets that and the government needs to abide by the Fed just like the rest of us.
Now, unfortunately, with the debt this big, the debt is in control of the Fed, where if the Fed keeps trying to fight inflation, then they're going to blow up Western civilization as they know it. And if they try and save the US government and print the money and support the debt markets, well, then that's a self-admission that inflation is here to stay. And everyone get ready for a chapter, probably a decade worth of sustained sufficiently high or record-breaking levels of inflation. And that's when you know that the debasement trade is on. The dollar is being like permanently devalued. Debt to GDP is being permanently devalued and we're living in like a new monetary order. But that decision is rapidly approaching the Fed and this is all because the indebtedness of the US government. That is fiscal dominance.
One more recent thing, the MOVE index. So, how do we know how close they are to having to make a decision? You know, we'll never really know. It's, what I, first of all, I'm not a professional podcaster, but secondly, nobody really knows. But how can I give you guys my best guess? Well, this is the MOVE index. This index measures bond volatility. And the reason it's so important is because theoretically Treasuries are the collateral asset that the world uses, right? The dollar is the world reserve currency, but I would say Treasuries and US debt is the world reserve asset. And as we've talked about increasingly over the last few decades, international trade partners have refused to lend money to the US government and buy our debt.
And so in order to find purchasers of our debt to continue to kick this can down the road and finance deficit spending and exceeding our means, we have allowed for excessive amounts of leverage domestically, whether through US hedge funds, the US domestic banking system, pensions, endowments. And so you can think of the domestic financial system in the United States as highly, highly, highly levered on US debt. And so if that collateral starts to become volatile, that's when people have to delever, derisk, and start to lessen or completely unwind their position.
So when the volatility of this collateral, of US debt, of bonds starts to spike, you usually get a government bailout because the government cannot afford for everyone to close out their leverage treasury position because then, you know, the 10-year is going to go from 5.3% to 10% to 20% because all the people that are quote-unquote lending to the US government are just collateralizing themselves with Treasuries and borrowing an insane amount of money to support the spending of the US.
And so right now in the last month, the MOVE index, the volatility index for bonds, is up 50%. Today when I checked, it's at 113. Usually where it looks like either the Fed or the Treasury, the US government or the central bank step in and interfere and start printing money is when it hits 130. So we're about 17 points away. And again, it is up 50% in the last 30 days alone. What's the relevance to that? Well, about 30 days ago is when the Fed hiked rates. So, the Fed hiked rates last month and since then you've seen yields soar and the bond volatility index soar. Again, this is fiscal dominance. This is pouring gasoline onto an already lit fire of inflation and indebtedness and stimulus to the economy.
So, this is something to keep an eye on when I say, 'Hey, we're getting pretty close to decision time. Let's see if Kevin Warsh and the Fed are willing to destroy Pax Americana and Western civilization as we know it, or if they're all tough talk, they're inevitably going to print the money and inflation's always been baked in the cake and Bitcoin is going to millions of dollars a coin over the coming decade.' Now, you guys obviously know my opinion. It's the latter. But either way you slice it, the one that bears the cost and the bill is the holder of the fiat, is the dollar holders. And the people that will benefit and be able to afford things in their life and retain any sense of purchasing power are hard asset holders like Bitcoiners. Doesn't really matter how we get there. That's the only destination we're all marching towards.
So, as I mentioned, the Fed can keep rates high. They can continue to try and hike. In fact, the market was pricing in more hikes and Kevin Warsh was like, 'Oh, I don't like forward guidance. We're not going to give forward guidance.' Then all of a sudden, every single Fed member that's ever been a Fed member came out and said that they probably aren't going to hike. Yeah. So much. Again, these guys just talk, talk, talk. They're professional yippy-yapper chatters. Wanker bankers, I call them. All these wanker bankers central planning the wanking banking system. They just talk, talk, talk. But when push comes to shove, we all know what they're going to do. They gave the forward guidance. They cooled the market off the expectation that they were going to hike because they just drizzled a little bit of gasoline on the fire. Exactly what we said was going to happen happened. They know they can't drizzle any more gasoline. They know they're caught in a pickle. They're giving the forward guidance.
So, sure, they can hold rates this high. They can hike rates more. They're going to break the bond market entirely, the largest market in the world that collateralizes the entire world. They're going to shatter it into oblivion, and Western civilization will collapse, or they're going to find a way to stimulate dollar liquidity and print the money to support the debt and give up on fighting inflation. Those are the two doors that they have a chance to walk through. There are no other doors. There is no pausing time. There is no 'wait, give me a second, I want to think about it.' There's none of that. We are rapidly approaching having to make a choice. So, we'll see what they do. And my best guess is this is kind of what Bitcoin has been sniffing out.
Now, with all that being said, if you listen to Scott Bessent or Scotty B, as we call him on the show, the CFO of the United States of America, the chief financial markets manipulator, the chief volatility officer, if you listen to him talk, he says, 'Yeah, the bond market isn't great, but I don't really care as long as it's better than everyone else's.' And you're like, 'Well, what is this guy talking about? He doesn't care that US mortgage rates are at over 7% going into midterms.' Of course he cares. Of course he cares.
But what he, listen, let me tell you guys something. First of all, Scott Bessent is one of the greatest traders, hedge fund managers of all time. And he was very open in taking this role as the Treasury Secretary of the United States of America that he was going to try and financially engineer America out of this problem. And he wanted to kick off a new monetary order, retire the post-1971 US dollar and kick off a new monetary order. And as he is acclaimed and accredited of being one of the greatest financial engineers of all time, there's no bigger Super Bowl, there's no bigger kind of World Cup championship than financially engineering the United States out of the crisis that they found themselves in. That's admittedly what he's trying to do.
So yes, he is actively financially engineering, manipulating markets and trying to get what he needs to happen for the United States to get out of this mess alive where they can reshore their production, their industrial base, their military base and get out of this while the dollar is trusted but tremendously weaker. Okay, I'll get into all of that in a second, but you have to understand that. And so when Scott Bessent says things to the market, he's effectively encouraging the market to participate with him because although he is one of the most powerful people in the world, he's got the US military and the US dollar and the US financial markets behind him in what he wants and backing his interests. That alone will not get him out of this mess. He could use the capital of the private markets. He wants all the other hedge funds and all the other people.
He says on interviews, you guys should listen to this guy talk. He says, 'You know, when I was a hedge fund manager, I used to creep over the top windowsill and see what the politicians were going to decide on, or I would put my ear to the door and try and listen to their strategy and their thoughts because I just wanted to know how currencies were going to trade, how debt was going, what debt level was unacceptable, you know, if gold was part of their conversations.' He's like, 'I just wanted to know that information and now I'm on the other side of the door and these are my thoughts.' He's openly telling you as a market participant what he's going to do because he wants you to participate in it. Like if he wants the dollar stronger, he wants you to long the dollar. If he wants the dollar weaker, he wants you to short the dollar. He wants you to help him manipulate markets and get him to where he wants to go.
Just keep that in mind as I explain what's going on in Europe because he keeps saying, 'Yeah, 7-year mortgages aren't great. It should get better after the Iran war is over.' But what matters more than that is, sure, the US is a little ugly, but you know who's worse? Europe is worse. Why does he keep saying that? Let's take a look.
First of all, understanding what Scott Bessent in the United States wants generally. If you understand the fiat system today, the dollar is the world reserve currency. This post-World War monetary order, specifically World War II, and really specifically after 1971 when the United States departed from the gold standard and just became this kind of debt-collateralized, Treasuries-collateralized system. The world needs dollars. Okay, this is the system we set up as Americans. The world needs dollars because we became the world reserve currency by choice. That means that capital pours into the United States of America. Okay. Now, that also means that the dollar remains expensive. It remains artificially strong because there's, unfortunately for us, there's unlimited and persistent demand for dollars because it's the world reserve currency. It's what people pay their debt in. It's what people get their surplus in. It's how people do currency exchange. It's how you cannot live a life without dollars, especially if you're a sovereign nation.
Now, that has benefits. The world reserve currency status allows for us to have cheap imports and very easy borrowing. So, this is why the United States is a consumption nation. We have very cheap imports. So this has afforded Americans for many decades a higher quality of life than we otherwise probably would have because we have backed the world reserve currency with our military and we've gotten very cheap imports and very easy credit and easy borrowing. But there's always a con. There's always another side. The bad side is that our factories have lost. So I've talked about this on the show. The middle of America is totally rusted out and decayed. All of those jobs, working with your hands, manual labor, blue-collar work, all of that has been exported overseas. That work is in Germany. That work is in China, that work is in South Korea, that work is in Japan.
And so, as the world reserve currency, an expensive dollar hurts your factories. It hurts your ability to export. So, sure, it makes imports cheaper and it makes borrowing cheaper, but it hurts your ability to actually produce anything yourself. And then obviously if you roll this forward a bunch, as the world reserve currency issuer you have to run massive deficits to supply the world with dollars. So the world buys our dollars and our debt. We consume from the world and we import all of their stuff and then the rest of the world has the opposite trade. They import all these dollars and they export the stuff that they're making. Right? And so you can think of countries like Germany, Japan, South Korea, Taiwan, China, and they're making cars, machinery, technology, chemicals, chips. Okay? And so understand that this is the current monetary order.
Now, this is obviously not sustainable because at some point people are going to stop lending money to the US government because they aren't productive. They run persistent deficits. They have a money printer. They bail things out. The currency is constantly being debased. You're losing purchasing power. And you know what happens to falling empires is initially they have very easy, low-hanging fruit productivity gains, but then eventually that exhausts itself. You cannot just print money and export a piece of paper forever. And what happens with empires is that they get ahead of themselves. They get full of themselves. They get cocky. They get lazy. And when they run out of productivity gains, they overextend themselves. They overextend their means. They overextend their indebtedness and they catch themselves in a trap. That's what happened to the fall of Rome and the Roman Empire. Look at the history of all fallen empires and the United States is in the same pickle.
And there's all these ways to measure this like debt to GDP. Usually once debt to GDP gets to 130%, you're absolutely and utterly cooked. There's no country or empire that's ever survived that. The US is at like 120-something%. You're basically there. And so here we are. Okay, this is the world order.
Now, what is Scott Bessent admittedly trying to do? Well, he's trying to undo all of this and start a new monetary order because the United States has fully exhausted its current empire as the world reserve currency issuer that isn't backed by any hard assets. This post-1971, very pro-globalism, cheap imports, excessive consumption with an inability to produce and reshore and export. Okay, that is dead. This is bipartisan by the way. This is not a Republican thing. This is not a Democratic thing. This is an American thing. America needs to bring manual labor back. It needs to not rely on hyper-financialization and asset inflation to hide the lack of real wage growth and real inflation. Like all of this is known. This is agreed upon. This is not contentious whatsoever.
And so how has every other country in the history of humanity done this? Like America between 1945 and 1980 or Japan in the 1980s or Korea, Taiwan and China since the 1990s. How have they done this? Well, one, tariffs is a very common strategy because it keeps other countries' goods out of your country. Okay, where did Trump get his idea of tariffs? Well, it's not a new idea. It's a fairly consistent playbook to run if you need to reshore, if you need to bring industrial production, your military production and base, all of this back. And then the other thing that is absolutely critical, it's impossible to achieve this without it, is you need to cheapen the currency.
So, as I said, because the dollar is the world reserve currency and the world has this insatiable demand, unlimited persistent demand for dollars, that gives the dollar its artificial strength. Like us Bitcoiners say, Bitcoin really should be worth a million dollars a coin. How come it's not? You know, the dollar is artificially strong. The amount of demand and artificial strength that the world is supplying to dollars is strong because it's the world reserve currency. And so somehow the United States needs to cheapen its currency. And you have to cheapen it specifically against who you're trading with, right? You need a cheaper dollar against people that you're importing from.
Now, the United States' main competitor is China. Okay? We all know that. And Trump and his tariffs and competing with China. So as the United States offshored production of pretty much everything, chips, military equipment, rare earths, the United States, it only produces hyper-financialization, leverage, derivatives, exchanges, technology. We have hyper-financialized. The American dream only and solely lives on the coast. You want the American dream, you got to be a venture capitalist. You got to be a hedge fund manager. You got to be on Wall Street. You got to be on Silicon Valley. The middle of America is toast. That's the bottom of the K-shaped economy. They've been getting utterly and completely slaughtered and misled and abused.
And Trump is trying to unwind all of that. Reshore America, bring blue-collar back, re-industrialize, bring factories back, economy booming, so on and so forth, so on and so forth. And that's been the headbutt with China. Obviously, that's a bit threatening to China because China has taken on the role of being the world's factory. But mind you, China's been able to do this because they have allowed for their currency to be persistently and excessively weak relative to the dollar. And the dollar has been artificially strong because it's world reserve currency. So as America tries to weaken its currency and increase its reshoring of production and factories and economic growth, China's kind of doing the opposite. So, they're seeing what America's doing and they're taking their excess trade flows and their excess surplus and they're recycling it into things like gold and they're building wealth domestically and locally through gold and neutral reserve assets.
Now, where's the battleground? Where is China and America inevitably going to compete over who has the better factories, the better products, the better production, the better ability to export? And what land sits in the middle of China and America? It is of course Europe. The battleground, the shared customer that China and America have is Europe. Okay. Now, how does America win the battle over Europe? So if Europe needs energy, if Europe needs cars, if Europe needs, like Elon Musk in America now building their own chip factories, if Europe needs chips, who are they going to import from? Are they going to import from the United States or are they going to import from China? And this is the eventual and inevitable battleground.
And you have to understand that Trump and Bessent and the United States government has very openly discussed this. They want to reshore. They want to bring jobs back. They want to export. The United States for the first time I believe in a long time was net exporters of energy. So you know Europe has always been, you know, naturally poorer than the United States just like land-wise. They're not nearly as rich in oil, in energy, in food. The United States is a wealthy plot of land and it's surrounded by wealthy land as well. Mexico, Canada, there's lots of energy, there's lots of oil, there's lots of food. The problem is just policy and the monetary decisions. The only reason the United States imports and doesn't produce itself is because it's the world reserve currency because it needs to sell its debt based on the current monetary structure.
If the United States transitions away from that, it has everything it needs to produce on its own, to be an exporter, to run a surplus. It can do that if it wants to do that. It was always easier to just print money and cheaply import and just consume. It's why the baby boomers are the wealthiest, highest consumption generation in the history of mankind because they lived in this period of cheap imports, asset inflation. And they were basically through policy commanded to just consume excessively. And my
Generation unfortunately was born at the wrong time, where we were born at the tail end of this, and we have to face all the consequences that's been built up over the decades. And then we have to invent Bitcoin, and then we have to push it to adoption and found Strike and fix all this mess we were born into. I digress. Okay, so let's keep going.
So the United States needs to weaken its currency. It needs to reorder global flows and monetary order and global trade so that it can reshore production, have factories again, bring blue-collar work back, potentially solve for its debt and its deficits, one day somehow run a surplus. It needs a cheaper dollar to get there, specifically cheaper than the euro. It needs a dollar cheaper than the yen, the yuan, and the Taiwanese dollar. And it also needs Europe to act as separate countries, not one giant block. Now, let me explain why that's the case.
Well, first let's get into... Now, this is speculation. I'm just having fun with it, okay? As I'll get into in a sec, France is literally falling apart. It's combusting and exploding as I'm talking. And so I'm just kind of, you know, some of these ideas are inspired by Lyn Alden or Luke Groman or Arthur Hayes. You know, I'm just... there's lots of different ideas as to who's pulling the strings, what everyone's master plan is. I'll never be able to prove it. I have no proof. It's just speculation. But I think that there's some truth to what I'm about to say, or else I wouldn't say it. And I also think it's fun to make sense of the world and try and figure it out. So here's the thing.
Actually, I think I put this slide... Okay, let me do this slide first. So Japan... Japan has this problem where they've had the yen that's so cheap historically, and famously Japan has had interest rates at zero or at once negative, like they will pay you to buy that. That is a very, very cheap currency. And again, a rational person, especially an American, would be like, why would they want their currency so cheap? Again, that helps their export market. So a strong dollar helps us import, makes imports cheap, but it's impossible to export. And eventually that luxury runs out and we're in the position we're in. Japan was opposite. Against the dollar, the Japanese yen was incredibly cheap. Incredibly, incredibly cheap. But eventually chickens come home to roost and Japan gets inflation and they need to fight inflation.
And you can see the screenshot on the screen, and for the listeners that aren't watching, the screenshot news title reads: Morning Bid: Japan is calling capital home. They want to repatriate the capital back. So think about it. Japan owns assets. So you know you're running a surplus against the United States, that the United States is running a $2 trillion deficit. That means there's $2 trillion worth of surplus out there in the world. We know that China is a trillion of it, but that surplus is predominantly made up of Taiwan, China, South Korea, Japan, Germany, maybe a little bit of India. Okay? And that, you know, all of the United States trading partners, for every deficit, there's a surplus. And with that surplus and with the dollars that people are getting, they own assets.
So these countries, Japan Inc., call it just to be simple, Japan Inc. owns treasuries, they own equity, US equities, US treasuries, they own assets, right? Now when they say we need to call that capital home because we need to strengthen the yen, which fights inflation, right? So with near zero rates, that's really cheap yen. That's pricey energy imports. If the currency gets too low and too weak, then you get inflation. Then you get energy inflation. And then you get a population of people that are saying, 'You're just destroying our lives and our purchasing power for your ability to export to the United States. We want to have families. We want to have energy. We want to have housing. Strengthen the currency.' And Japan says, 'Fine. We're going to call some of this capital home.' That's literally the title of the news article.
So the Bank of Japan has slowly started to hike rates and they're demanding that these assets be repatriated back into the country, which will strengthen the yen, which will cool prices down. Now, when Scott Bessent hears something like that, what does he hear? He hears, 'Fuck.' Japan is saying, 'Sell US treasuries, sell US equities, and bring that money home to the Japanese yen.' So back over the summer when you're hearing like Japan needs an intervention, Japan needs the United States' help, this is because Japan knows that if they just start dumping treasuries and dumping US equities, they're going to cause a stock market crash. They're going to cause a treasury market collapse and the United States is going to be pissed and not help.
You know, everyone that neighbors China is terrified. They rely on the help of the United States. I don't know if they actually should be terrified. I don't know if there's a real threat of hot war, but Japan instead called the United States and said, 'Hey, this is the situation we're in. We have to start fighting inflation. Our currency has been weak for too long. We need to repatriate some of this capital back, but most of our capital is in US assets because you guys are the world reserve currency. You have the strongest financial markets. You've got Meta and Google and Microsoft and all these companies there. We own all that equity. We've been the ones lending to you guys over, you know, the last 30 to 50 years, and we need to bring this capital home.' Okay. So Scott Bessent then intervenes in the Japanese yen markets and he did a very specific thing.
Now, traditionally what the US government would have done is say, 'Hey, don't sell these assets because again, you sell bonds, that's going to spike yields. That's going to ruin everyone's mortgage rate and their credit card rate and their car loans and their ability to go to college through debt and student loans. You're going to ruin Americans' ability to consume. You're going to blow up the debt markets. You're going to kill Pax Americana as we know it. And you're going to crash the stock market. Don't do that. Instead, we'll give you loans collateralized by these assets so you don't have to sell and we'll just print dollars and give them to you.' And again, this is where the printing money comes from. This is where the stimulus comes from. This is when Bitcoin goes on runs like from 3,000 to 70,000, is when politicians intervene in free market activity and start printing money out of thin air to protect their desired outcome.
However, instead of Scott Bessent saying, 'Here's a bunch of freshly printed dollars which would have... and you use these dollars to buy the yen, which would strengthen the JPY, the Japanese currency, and weaken the dollar,' instead, he sold a bunch of euros to buy JPY, Japanese yen, which is insane. So I'll read this screenshot on the right for the podcast listeners. It reads: 'US Treasury Secretary Scott Bessent directed a rare joint foreign exchange intervention on July 31st, 2026, using the US exchange stabilization fund to sell euros to buy Japanese yen after the yen fell to a 40-year low.' Again, the Japanese currency was far too low. That causes inflation. It's very expensive then to import energy. The people end up getting pissed because they realize they're the suckers at the table. Japan has to strengthen the yen. They need America's help because if they just start dumping American assets and ruin Pax Americana as we know it, they think that they're going to be... So they call Scott Bessent. What does Scott Bessent do? He doesn't weaken the dollar and print a bunch of dollars. He sells a bunch of euros out of the US exchange stabilization fund.
Key details of the intervention: a handwritten to-do list on Bessent's desk: 'Buy Japanese yen, 5 to 10 billion.' First signaled market action. The intervention marked the first time that the US has bought yen to support Japan's currency since 1998. Again, if you guys think that the Secretary of the Treasury of the United States is just leaking photos of his notebook, you really think that Scott Bessent writes in a journal what he has to do today and a reporter happened to take a peek at it? Guys, he's forecasting what he's going to do so that he can get the rest of the market to participate with him. He needed help strengthening the yen. He needed the world to know that he was going to intervene. Japan needs a stronger currency and to follow his lead because guess what? Everyone wants to get rich. Everyone wants to get money. And if we live in this Ponzi clown world, you bet your ass everyone on Wall Street and all these hedge fund managers are going to listen to the dirty, conniving politician who's basically calling all the shots.
Okay, I continue reading the mechanism. The Treasury sold existing foreign currency assets held in the exchange stabilization fund, specifically euros. So the United States specifically dumped euros through execution via the New York Fed and major banks like Goldman Sachs and Morgan Stanley to purchase Japanese yen. Justification: Bessent defended the move in response to Senator Elizabeth Warren, arguing that extreme disorderly yen volatility could trigger forced position unwinds, destabilize global markets, and raise US borrowing costs because Japan is a major holder of US treasuries. Okay, we got everything we needed right in that screenshot. Why did Bessent intervene? He did not want Japan selling US treasuries in what he called destabilizing global markets and forcing position unwinds. They dump treasuries, yields spike, the United States goes into an utter and complete crisis and the government can't afford itself anymore.
Okay, now the question is why did he choose euros? Now I go back to this slide and reintroduce this idea that Europe is this battleground that inevitably the US and China will compete over, and it is the weakest link that is being thrown under the bus. When Bessent does that, he's signaling to the market: we need to strengthen the yen. Everyone follow my lead if you are private profit-seeking investors and you want to make money. But in order to strengthen the yen, what is going to go down? It's not yet going to be the dollar. It's going to be the euro. I want to crush the euro. So what deal does he strike with Japan? What's his game plan? What's his potential idea? Japan sells Europe, not the United States. He wants Japan to sell European bank stock, European debt, not US debt, not US securities, not US equity.
Okay. Who's the weakest link that matters inside of Europe? Like thought to be one of the stronger economies and nations that's going to crack? It's France, which we'll get into in a second. If Bessent can convince everybody to sell Europe, and I'm not just saying sell euros, but sell European debt, run out of, flee European debt, flee European bank equity, flee the euro, then he will break France. If he breaks France, then the euro will fracture. If the euro fractures, then Germany is stuck with a strong currency. I'll get into this in a second, but Germany has benefited tremendously from the euro because they're a crazy strong country that runs a massive surplus that has a crazy export market, but they get to hide and benefit from a weak currency because the currency they use is shared with a bunch of weaker economies and weaker countries. So it's like you get the benefits of being an exporter and a wealthy nation, but you don't get the cons because you get to share a weak currency with everybody else, right? It's getting the best of both worlds. The euro has tremendously benefited Germany.
So let's continue to walk through this plan. Bessent in an interview last month with CNBC, and I quote, says: 'Yes, I mean because you know, I mean the funding needs I think are daunting to a lot of folks. The dependence on foreign bond holders, for instance, we saw the intervention in the Japanese yen and that's erased a lot of the progress there. And so there are kind of all these worries at once about what's going to happen ultimately with these holders of treasuries.' Bessent then responds: 'Well, again, people have bad information. I have asymmetric information, so I think the market should think, well, why would we have joined the Japanese in the intervention at this time? Do we know something that the market doesn't know in terms of being willing to do, you know, what I would call a Treasury twist here in terms of the bond market? What do I know that the market doesn't know?' So I think the market's probably gotten a little ahead of itself. A lot of people don't have much to do in August.'
Again, he says, 'I have asymmetric information. What do I know that you guys don't know? I used to be a hedge fund manager. I used to be putting my ear to the door. Now I'm the one inside the door making the decisions.' He's asking the market to follow on with him. He's asking the market to piece together what he's trying to do and what he's doing so that they participate with him. So the idea is Japan needs to bring money home because Japan needs to strengthen the yen because Japan needs to fight inflation because such a weak currency has made their imports very expensive, specifically energy. Okay. Bessent says, listen, don't sell the United States. Don't sell our treasuries. Don't sell our equities. I will help you and the United States will have your full-on support. Instead, dump Europe.
And Bessent kicks this off by supporting the Japanese yen as the United States by taking a pile of euros and dumping them at market and sending a signal to the world, going on this media tour and saying, 'Hey guys, if I were you, I would do what I'm doing. I was you once. I was on Wall Street. I was a hedge fund manager begging and pleading to understand the financial engineering that the government was trying to do. I'm telling you right now what I'm doing and why I'm doing it.' Okay. So Japan starts selling Europe right now. Who's the weakest link in Europe? Where will we start to see this stress? It's France. France has every single weakness at once. France has massive debt, massive deficits, a huge government. The voters in France refuse to fight for cuts, like budget cuts, and France's debt is owned almost all by foreigners. It's not domestically owned. It's owned by Germany. Like Germany's buying French debt. Japan is buying French debt. And the problem with foreigners owning your debt is when foreigners need money themselves, that's what they sell. So it's cool when they buy it, but it hurts when they sell it.
And then the last thing that France doesn't have that the United States has is it can't print its own money. Again, the ECB, the European Central Bank, and the euro is shared amongst the European Union. And so France can create as much debt as it wants, but it can't print its own money to bail itself out. The United States has that luxury. The United States has the Federal Reserve. There is no French central bank. There's just the ECB. And so when money gets picky in Europe, France gets sold first.
Okay, just to double-click on France. Okay, all French debt owned by foreigners sized against their economy as a percentage of GDP. In 1999, it was 46%. Today, it's 111%. It's over 100%. Around 60% of France's government debt is owned by foreigners. Over 70% of France's bank debt, so the largest banks in France, is owned by foreigners. So if foreigners start selling French debt, they're selling French government debt and they're selling French bank debt. And that would be a huge problem. How would we know that this is happening? How would we know that there's a crisis brewing and everyone is piling in on Europe and within Europe the weakest link is France? Well, there's three charts that I would look at.
One is the euro traded in Japanese yen. If we're right and this is happening, then the euro should be falling against the Japanese yen because the Japanese yen should be getting stronger. Again, this was the goal for Japan. They needed to strengthen their currency to solve for inflation. Well, the euro is down 4%, which is a massive move in currencies, by the way. It's down 4% against the Japanese yen since. Okay, that has already started to fall. Tick check number one. Number two, there's the spread between French debt and German debt because if all these markets are healthy and everyone's creditworthy and everything's going well, then it's not that big of a deal, you know, the creditworthiness between France and Germany. But if people are really worried about something blowing up and don't want the counterparty risk with a sovereign that's about to blow up, then they're going to rotate their capital out of France, sell French debt, and rotate into what they consider a stronger place or a safer place like Germany.
The spread between France and Germany is 135 basis points. Look at this chart in the middle here, the blue line. It's going hockey stick vertical. This looks like a Bitcoin bull run. This is crazy. So France's yields are spiking more than anyone else. The French debt to German debt spread is blowing out. And then the last one, France's biggest bank. Let's check how their equity is doing. It's down 10% since. So the euro is down against the yen. France is blowing out against Germany. And the biggest bank is cratering like a shitcoin.
Hey, I'm never going to be able to prove all of this, but you can't call me crazy. I know parts of this are absolutely true. Absolutely true. And so what I think the United States is trying to do is, well, firstly, you know what's going to happen? Well, the ECB eventually is going to have to step in and bail France out. But they're not going to do it yet. There's all sorts of like political tensions in France. Listen, I'm not French. I'm not European. I don't know the details probably as well as some of my European listeners, but you know, you guys can summarize it exactly how you'd think. Too much debt. You can't cut spending. You can't raise taxes. So you have to print money. The people are rioting in the streets. They refuse to cut spending. They refuse to pay more taxes. They're only going to elect someone that wants to print money. And so printing money is the only way. That's going to be how the debt gets paid.
Now, if Europe starts to decouple from one unified union and starts to splinter, okay, France, Italy, Italy extremely indebted in a really shitty spot, Spain, Portugal, Greece. If they all start printing money, creating insane amounts of leverage and bank reserves to support their debt and bail themselves out, that leaves Germany holding the strongest currency in Europe, and its exports all of a sudden get expensive, which allows the US to compete with Germany on a factory basis of producing goods. You see the US's long-standing plan of how do we get a weaker currency than those that we're competing for. If the US can find a way to splinter Europe because right now the euro is masking Germany's extreme strengths and ability to export. The euro system is just a giant bribe. Really doesn't make any sense.
And the United States is arguably... well, listen, again, I can't prove this, but if I listen to what Bessent is saying and I'm watching what he's doing, like why is this guy going out of his way to help Japan by just dumping euros? Like what a dick. That's an insane thing to do. Why would he do that? And you start looking into it. Oh, he's trying to blow up the whole euro system. He's trying to splinter these countries, get them to kind of siphon off a little bit and force Germany to... And you know, Germany, Europe's in a shitty spot. They have deflationary pressure against their exports, right? Like if Germany is a major exporter of cars, let's say they're exporting cars at 50,000 euro and China is now building the same cars. Maybe they're a little bit worse and they don't have the German label on it, but they're a fifth the price. That's deflationary pressure on German exports. And then there's inflationary pressure on imports, like importing energy. There's inflationary pressure on that. And so it's a shitty spot to be in.
And America is really trying to call them out, blow up the Euro system so that they're in a better position to compete for Europe and against major exporters like Germany and against major exporters like Taiwan and South Korea and China and Japan. But first, they have to blow up the Europe system and maybe cause France to go kaboom before they start weakening the dollar.
So this is another reason that because people are asking why the hell Bessent and Wars are way too smart. These guys are financial engineers in their hearts, in their prime. There's no way that anything I'm saying is news to them. There's no way, you know, Bitcoiners, we stay humble. There's no way that we are better financial engineers and we're better at accounting and math than guys that have... I mean, Scott Bessent blew up the Bank of England. If anyone knows, he knows.
And so you have to ask yourself why are they pouring gasoline on an already lit fire in the United States of America? Why did Wars hike interest rates? Why is Bessent allowing the 10-year to get to 5.3%? Allowing mortgage rates to be over 7%? Why is he allowing the move index to potentially cause a financial crisis? Well, in theory, if the US has high rates, that strengthens the dollar and brings money into America. Money would continually leave Europe. The dollar will continually get stronger and Europe will continually get squeezed. And this is why he keeps saying, 'Yeah, I know the American bond market is facing, you know, a little blip, but I don't worry if we're just going up. I worry, are we going up less than everyone else, like Europe?' He keeps saying that and he's telling the market to follow on his trade.
He's blowing the euro system up because he wants to leave Germany in a far more vulnerable export position so that he can compete eventually to devalue the dollar, which we all know, as I mentioned before, has to happen at some point. He probably wants to bruise up Europe, specifically Germany and the euro system, a little bit before he weakens the dollar and tries to reshore America ultimately to compete against China. Okay. So you can think of phase one as the Fed tightens, the dollar strengthens. The weakest crack, and that weakest right now is France. And I have these charts pulled up on a daily basis just to... I'm literally watching France fall apart in real time.
And then phase two can look like, oh no, something's broken. Oh no, Europe needs our help. Oh no, Japan needs our help. Oh no, the bond market needs our help. Then that's when the Fed and the Treasury step in, team up, print the money, the dollar weakens. That's when Bitcoin goes on an absolute historical tear. And that's when the US has the door open to fully reshore their production, unwind from this whole post-1971 and offshoring of manual labor and military equipment and rare earth. And the Trump administration kind of proceeds with their plan, but maybe they're making a pit stop in splintering Europe and destroying the Euro system. And unfortunately, France looks to be like the casualty, the weakest link that's getting lit on fire.
And you know, really at the end of the day, it's Germany that the United States wants to eventually, you know, because if all of this goes down, then Germany all of a sudden has the Deutsche mark again. And that's what they don't want. They love the euro because they get a currency that's shared with a bunch of, you know, weaker countries, but they have the export strength and, you know, wealth of, you know, a much stronger country. You know, they're getting the best of both worlds because of this shitty, corrupt euro system. You understand?
And so at the end of the day, Bessent wants the dollar to remain trusted. So he wants the dollar to remain the world reserve currency, but he wants it cheaper. And this is again, you got to just listen to what the guy is saying. People are saying, 'How are they going to do this while retaining the dollar as the world reserve currency?' Well, they make a distinction between the dollar being trusted and the dollar being strong. They think that it could be trusted still, but it could be cheaper and devalued against its debt, against the yen, the yuan, the euro. And that's their game plan. And I would not put it past, you know, I wouldn't put it past these financial engineers from Wall Street that are here to try and fix America's problems to basically light France on fire and destroy the euro system in order to better position the US to kind of in a sly roundabout way devalue the dollar and become a major exporter again of goods and services and produce stuff.
Crazy, right? Crazy. Again, a lot of this is speculation, you know? Some of it's not. Like you guys pull up EUR/JPY trading pair. Pull up the spread between France debt, the France 10-year and the German 10-year. Pull up the equities of the biggest banks in France. I mean, again, 60% of French debt is internationally owned. 71% of the France bank equities is internationally owned. Bessent did dump euros purposefully and specifically to strengthen the yen and told the world about it and said, 'Hey, check my notes. Here's my to-do list for the day. Follow me.' That's crazy.
So anyway, you know, if you don't care about any of this, which, you know, I wouldn't blame you for that. I mean, just buy Bitcoin. All roads, all I'm talking about, all these currencies are weakening, all these people needing bailouts, you know, all of this debasement and devaluation, all of it leads to Bitcoin going up. And you know, why is Bitcoin going up in the way that it is? Why is Bitcoin rising even though 10-year yields in the US are 5.3%? Listen, I don't know. I never will. It doesn't matter. At the end of the day, it's all supply demand. If there's more people interested in buying Bitcoin than selling Bitcoin, then inevitably that results in a higher price.
But if I have my own show with no ads and no sponsors and I'm just here to hang out with you guys and make sense of the world and develop interesting theories and push this revolution in the right direction, I found it interesting. I found it interesting. Okay. Lastly, some Strike updates. So you guys have been tweeting at us and at me for a long time now. So I'll read some of these. 'I'd like to have a cash position accumulating interest while I use that cash to DCA hourly on Strike. Interest on cash paid in Bitcoin.' 'I just need Bitcoin interest paid on my cash on Strike and then Strike will be my bank.' Oh, I love this one. 'Hey Jack, I need Bitcoin interest on cash. I just moved six figures of cash into Strike to defend against margin calls. So that cash is sitting waiting to be used. Bitcoin interest on cash would be very beneficial. This would make your great products even better. Keep it up, brother.' So you guys have been asking, asking, asking. I could have pages of these screenshots.
And so here we are, ladies and gentlemen. Now, I tell you guys all the time, don't ruin my announcements. If you listen to the show and you tune in live and you support the show, you're always going to get the announcements first because I just can't help myself. But this will probably go out, you know, you guys will probably get access to it tomorrow. I don't know when we'll announce it, either tomorrow, Wednesday, or Thursday, but it's a this-week thing. 3.6% is where, you know, we have been and where we should start. You know, with the recent Fed hike, I'm seeing what I can do in regards to getting that a bit higher, but at minimum, we'll be at 3.6% interest on your cash paid out in Bitcoin.
Hey, don't look now, man. Strike, you know, we lowered our highest fee tier to buy Bitcoin on the platform is 0.89%. So we've got to be like the cheapest place to buy Bitcoin. No fee DCA, no fee. When you get your direct deposit paid in Bitcoin, you can borrow against your Bitcoin. You can get a line of credit against your Bitcoin. You can pay your bills with your cash or your Bitcoin. So if you want to make Strike your bank and pay your credit card bill and your mortgage and your electricity bill and your car note, this is all the things I do. By the way, Strike is fully my bank. I do everything on Strike. I pay my bills. I get my paychecks into Strike. And then if you have your cash sitting there to pay your bills, you're earning bitcoins on the cash just sitting there.
It's all you guys can see based on the screenshot. It's FDIC insured up to $250,000. So the interest is generated from sweeping it into the Fed funds. I've talked to you guys about potentially paying 5, 6% interest on cash. That is once we get some specific licenses. So just be patient with me. Unfortunately, I wasn't legally allowed to do that without these licenses. So we've been applying and we've been on the path to get there. But in the meantime, 3.6% and potentially higher, maybe closer to 4% is where we'll start. And you've got all the... I just think Strike is just the best Bitcoin bank in the world. You know, I think sometimes...
I don't know, a lot of this stuff I hate to admit it because I'm pleasing the haters, but I take this stuff personally. Like people said, 'Oh, he's just a kid. He's a glorified podcaster. He'll never build a real business. They'll never generate revenue. They'll never turn a profit.' Well, I think we're the highest revenue generating Bitcoin-only startup in the world. We're profitable. We have 1,600 Bitcoin on our balance sheet. And then they say, 'Oh, he's not serious. He can't build serious banking functionality. No one's going to take him seriously.' Well, you can get your direct deposit into Strike. You can pay bills with Strike. You can now earn interest paid in Bitcoin on Strike. You can get a 12-month loan in Strike. You can get a loan that's volatility proof where you can't get liquidated on Strike. You can get a line of credit on Strike.
Every single time people come up with a new thing against me and against Strike, and I say, 'Okay, game on. Let's do it.' It's like entering a new... It's like a new chat. It's like, you know, in a video game where you hit a milestone where you respawn and they come up with a new monster, with a new bad guy that you have to defeat. It's like, okay, here we go. So anyways, I hope you guys are happy. I love building stuff for you guys. It's my favorite thing is to just listen to what you want and just, you know, work hard and get it to you. So that's exciting.
I also, this is a secret that I won't tweet for a little bit, but right after this, we'll be launching our stacks feature. So this is a feature again directly from you guys where a lot of you guys have told me like, hey, I do have another account at this other provider, but it's because I need to separate, you know, my wife's Bitcoin and my Bitcoin, or the Bitcoin I'm saving for a really long time versus the Bitcoin I'm okay to sell, or the Bitcoin that's for my house versus the Bitcoin that's just for stacking. And you guys have said if I can create like separate wallets inside of Strike where I can say this is for my house, this is for my firstborn child, this is for my wife, this is for the DCA, but I'm okay selling this, or this is for the eventual loan that I want to take out.
And so I have stacks on my phone. I've been using the feature. So I created like, this is the bitcoins that I'll pay my wedding bills with. So I have the feature. It's awesome. You guys are going to love it. We just don't want to launch too many awesome things at once. So right after we roll out interest on cash paid in Bitcoin, I'll turn on the stacks feature for you guys. And then after that, hopefully we should be getting some really cool custody stuff. So there's some really cool custody technology we've been working on. And you know, there's potentially some proof of reserve stuff or some custody services for you guys. So, you know, as we continue to invest and explore that, just, you know, tweet at me if you guys don't think I read the tweets or you don't think we care as a company what you guys have to say. You just don't know us.
Obviously I just showed you guys all your tweets. I bookmark them all. I show them to the team. So tweet at us, leave comments, let me know what you need and what you want. I got your back. Cool. Okay. Last thing this week on the show, listen, disclaimer, I'm sick, so I'm going to try and get a unique piece of content out to you guys every single day. Ideally, this is how the show works in perpetuity. I'm not opposed to having guests on, but I listen to all the other Bitcoin podcasts. They're great, but you know, they have a lot of the same guests that say a lot of the same things. It's not their fault. And I don't know, I think we have a chance to be different.
You know, I also, this is not my business. This is kind of like a fun hobby for me. I really enjoy hanging out with you guys. And you know, I have a separate business that makes money and pays my bills. So, you know, I don't have to sell ads. I don't have to be driven by business interests. I can just shoot the be real, be signal, be honest, and have fun. And so hopefully pending I feel good enough to get all this out, we'll have a new animated video. So, you know, we try and take big ideas, explain them visually in a way that's easy to digest and easy to share with friends and family. Those should always be on Tuesday. I'm trying to get to a once a week at minimum cadence for those.
On Wednesday, I'm planning on releasing my Bitcoin 101, Bitcoin versus altcoins. So what's the difference between Bitcoin and altcoins? How does Bitcoin differ from everything else that you see on your phone screen? Thursday, Bitcoin history. So you guys have been liking these a little bit of history. This Bitcoin history episode is what led to Satoshi's discovery. So before 2008, what was the state of cryptography, of proof of work? Satoshi took a bunch of existing technologies and basically discovered Bitcoin by combining them together and understanding cypherpunks and cryptography and proof of work before Bitcoin, I think is cool. It's culturally relevant and hopefully educational.
And then Friday is always Ask Jack. So our new Q&A format where you guys can call in, you can be anonymous if you want, ask me whatever you want, and I get to hear your voice. I play it on the show and ideally upload those on Friday. And that's at ask.jackmallers.com. All right. I can't believe my voice lasted this long. I love you guys. If you lasted this long, I really appreciate it. And it means that even though I sound gross and I got the snuffles, you love me anyway and I very much appreciate the support. So with that, enjoy the fresh sats from the cash that you have on Strike. If you guys have any issues or any feedback, you can always DM me. You can always tweet at me. We're here for you. And I'll see you tomorrow with a fresh animated educational video breaking...
