SPEAKER_00 0:00

So basically, what's happening is the government is given the ability, the power to run $80 billion deficits. And it doesn't matter what we say or do, they are going to go ahead and do it. They have unrestrained power. Even if we do vote them out, the next government's going to come in and run a deficit as well. So we're just caught in this trap where we can't get to balancing the books. How do we do it? I mean, you got to raise revenue or you got to decrease expenses, or both. So this is this is a vicious cycle. And the government with the central bank is unrestrained. They can print money whenever they need to. And they're always going to tell us it's for our benefit. But what does it do to the cost of living when they do it? And we're seeing the effects. We're living the effects.

SPEAKER_01 0:57

Welcome back, everybody. Welcome back to another episode of the Sovereign Capitalists podcast. I'm your host, Jose Atencio, and I have also George Roth here with me. And today we're going to be discussing the theme of the central bank deception. Central bank is it's something that has been present for decades here in Canada, since 1935, the central bank in Canada. But that's something that we usually don't talk about. Like the only times you hear about the central bank being talked about is when interest rates go up or go down. That's usually the only reason why you will hear about the central bank. And I think that's for a good reason and by design. That's something that we don't hear about, and it's something that we are not supposed to know. So that's what we're going to be discussing today. Now think about this. While you go to work, while you work specifically for every dollar you save, the central bank prints billions for their friends first. By the time that money reaches you, it's worth less, and your grocery bill is worth more. It is a hidden tax, it is a wealth transfer mechanism, and today we're going to show you how to opt out of the rigor game and build your own banking system. That's what we're going to be doing today. So, George, why don't we open with the problem? And uh we, you know, the the problem is complex, but we have basically identified three key aspects of the problem. Why don't we address the first one, George?

SPEAKER_00 2:40

Sure. So the first problem is the life-money connection. So we often say that money is simply a medium of exchange, which in essence it is. However, what does that really mean? It's actually stored life energy. So when the Bank of Canada prints money out of thin air, they're effectively stealing the time that we have spent working for those dollars. Because as we work and turn our time, trade our time for money, that money is worth less and less and less every day. And the reason that our money is worth less and less is because of what the Bank of Canada and in turn the commercial banks are doing. And none of it is in our best interests. So people don't think of that connection very often. But how is what these decisions that are made on high, how are they impacting you and I who are trying to make ends meet? This is this is the crux of what we're talking about today. And it's important to think not just of money as a medium of exchange, but what does that money mean and what is it doing to you when it's worth less and less and less every day?

SPEAKER_01 3:55

Agree, George. That's something that we hardly ever think about. Now, the second, um, the second of the problems is the inorganic trigger. What do we mean by that? So the Bank of Canada has the ability, and the bankers, so the commercial banks in conjunction with the commercial banks, they have the ability to create inorganic money. What does inorganic money mean? Inorganic money is money that's backed up by nothing, basically. It's they call it fiat money, but what that means is that it's backed up by the trust and the faith that people have on that piece of paper because the government says that that piece of paper holds value. But that piece of paper in itself, it doesn't inherently carry any value. It's because the government has said that it has value. If we talk about money, real money in this case we will call gold and silver. And one of the traits of real money is that it's not only valuable because we agree that it has value, but it's it can also be used as a commodity. It can also have other uses. So, an example of gold, it can be used as money, but it can be used for electronics, it can be used for jewelry, it can be used to store wealth, it can be used for all sorts of different things. That is not what happens with paper money. So that's why we call it a fiat currency. Now, when that happens and every new money is created, lowers the value of every dollar that's already in circulation, because the more there is of something, the less valuable it is. So, my question to the audience: how do you guys think that that process of inorganic money creation differs from the fundamentals of a business that creates value? Because when a business creates value, it's receiving dollars as a compensation, basically. But the government doesn't have to produce anything to create money out of thin air. That is a big problem to me. Now the third one, and this one is another big one, the debt trap. And what is the debt trap? Well, simply put, every time the Bank of Canada decides to create money, uh, it increases our national deficit. So think about it as the Bank of Canada is the credit card of the government.

SPEAKER_00 6:41

I would say they have a third option as well. They could actually cut expenses and try and balance the budget without increasing taxes, but that is not a very popular move either.

SPEAKER_01 6:52

George, I that's something that it did it did not cross my mind because it seems so foreign to me. Like you wouldn't expect that to happen from the government. So but you're absolutely right. That's what you know, if we live in if we will live in a rational environment, that's essentially what would you expect. And that's what happens in your own household. Like if you are in your household and you are spending more than what you earn, you have a problem. You're gonna have you're gonna have to cut down on the expenses, but they they don't they don't need to do that because they have they have us as slaves to to power their system. Um just to close on on that subject, uh essentially every time they create that money, that additional money that's created out of thin air, it's a tax because it reduces the purchasing power of every dollar that you have saved so far. And just so you guys have an idea, 2026, the government just released the uh budget, and for 2026, they expect that $80 billion deficit. Now, the total debt in Canada, it's $1.2 trillion. That's a public debt, $1.2 trillion, and that's since the inception of the Bank of Canada in 1935. And just so you have an idea, that's $1.2 trillion. In 1999, that was $600 billion. So half of that debt, it has been created in 25 years, so it's just accelerating the rate in which they are creating money without us even realizing, because a lot of Canadians don't understand what what a deficit means, and and even less this this kind of stuff. And that's why we're here talking about it, because everybody needs to know what's going on.

SPEAKER_00 8:44

I just uh just to kind of put put uh put what is you know inflation, put it put it into perspective, put it into terms that people can understand. So back in the Roman times, the the currency was gold, gold and silver, right? It was actual physical gold and silver and they created coins. It was too difficult to carry around you know big chunks of gold and silver, so they created gold coins and silver coins. And when the emperor of Rome wasn't getting enough money in the form of taxes and wasn't feeling like he was rich enough, they went so far as to cut corners off the coins so that it had it may it had the same, it was given the same value, but there was less gold in the coin. And then they made gold coins with less gold, same value, less gold, to the point where it wasn't even gold anymore. Wasn't silver. They were they were putting in other impure elements and metals, so it's no longer they were no longer gold and silver coins. And once the people figured it out what was going on, there was a revolt. And it is said that it's one of the causes of the fall of the Roman Empire, is when the people realized what was happening to their currency. So if we, in modern day terms, understood what was happening, but the value of our dollar, which no longer is is in the form of coins, but it's in paper and actually just digital numbers on a computer screen, if we actually understood what was happening and how the system is being manipulated, and we are always the ones that pay the price, we would have a revolt. If people truly understood what was happening, they would rise up, there would be a revolt. So uh it's important to understand because the mechanism for all this to happen is through the central bank. The central bank manipulates, and the reason that interest rates go up and down is because they're trying to control the money supply. Ultimately, that's what they're doing. And if we just look at COVID, we'll talk a little bit more about this in a minute, but if we look at COVID and the amount of money that was funneled into the economy in all countries, not just in Canada, and what came after COVID, the worst inflation in decades.

SPEAKER_01 11:15

I guess while yeah.

SPEAKER_00 11:16

And why? Why was there so much inflation um you know, two, three years after the influx of all this money supply, just just free money just flying everywhere, right? Because it was COVID. Um, and businesses were shut down, et cetera, et cetera. You know, they always wanted to blame the supply chain, they always wanted to blame the war in Ukraine, all these reasons that we have inflation, uh, but ultimately it was because there was so much money dumped into the system, our dollars were worth less and less, right?

SPEAKER_01 11:51

Yes. But they will never that they will never say it or confess that, but that's that's a truth that we want to bring to you. Let's talk about the implication now. Some of the implications of this central bank deception system that we have. The number number one implication I want to bring to the table is the cantiling effect, which you can also call that the reverse Robin Hood. This essentially means people think inflation hits everyone equally, but this guy, Richard Cantilum, prove otherwise. This is what happens when new money creation benefits the insiders first. So when new money is created by the Bank of Canada and by the bankers, when that new money is created, that new money is not distributed equally amongst all Canadians. That money hits and reaches the hands of insiders, that would be bankers, investment bankers, the government, officials, etc. That money hits them first, and by definition, that money they have has the same purchasing power because that money is still not in the market. But once they start spending that money, and that money trickles down into the economy and eventually gets into the hands of the regular Canadian, at that point, the prices in the grocery store, the prices of utilities, the prices of goods, they are already reflecting the fact that this new money was created. But that doesn't happen until the money gets into the kin the regular Canadian hands, and that's this effect. So it were like the the whole inorganic money creation game, it works wonders for them. Uh but the one that pays the cost, it's every one of us. So that's number one. Do you want to talk about the next one? Signal distortion, George?

SPEAKER_00 14:09

Sure. So signal distortion or malinvestment. And what does that mean? So we follow and believe in Austrian economics. And Mises, who is one of the um main individuals in the um Austrian economics movement, taught that interest rates are price signals. So when the central bank artificially suppresses rates, and again, COVID is a perfect example of when that took place, they're tricking entrepreneurs into building things the market doesn't actually want or need because the money is so-called cheap. So what they're trying to do by suppressing rates artificially is get more money into the economy and have people spend more and businesses invest more. But if the if the supply and demand is not matching, now things are being created that aren't actually needed or wanted. And this is what's causing truly the boom and bust cycles. So we constantly have ups and downs, booms and busts, and we've seen it over history. And they always follow what the central bank is doing with interest rates, because that is how they're actually managing, in their words, managing some might call it manipulating the money supply. And it's causing the boom and bust cycles. And this goes against Austrian economics, because they're not even they don't follow Austrian economics, they follow Keynesian economics, uh, where they believe in borrowing and spending is the way to go.

SPEAKER_01 16:03

George, think I I want to do this exercise really quick here with you. Think that think you are an entrepreneur uh during COVID, like the pandemic was just starting, and you know, lockdowns everywhere, the government was telling people to stay at home, all that stuff. And now would you do you think that would be a great time to start like a new branch or a new investment? What what would you be doing with your capital at that time?

SPEAKER_00 16:31

Not spending it, not spending it, right?

SPEAKER_01 16:35

Yes, and if you are not that that's the natural response from every business owner, like you know what, let's hold for a bit. I don't know what's going on. I want to be in cash, cash is skin, cash is secure, I want to wait up a bit and wait and wait to see where things are going. And that's just the natural response of the market. But what happened, and and if if we will let the market itself decide the price of money, with and the price of money is nothing more than the interest rate. If we will let the market decide, then if that's the sentiment of the entrepreneurs that they want to hold into cash, what will happen to the interest rates? They will go up. Right benefits the saver. Now, right if it's a saver, which in that at that point would be benefited the saver, yes. Correct. So it will send to the market the signal that hey, this is not a time to put money out there, this is a time to save. Okay, and if you want to have access to this capital, well, it's gonna cost you this much more because you know, and now if you need access to that capital during those times, then your business venture during those times, it better be profitable because you're gonna have to pay and like high interest rates if you want to have access to that capital, right? So you see how that works, but now what happened is that the Bank of Canada lower the rates against what a savvy entrepreneur will do, which is hold. And therefore, and now that's that that is sending the wrong signal, and that's how we create this mess, you know, and we are long overdue for a correction, and the more the more we play this game, the nastier it is that correction, and and which that correction will happen. Everybody is you know, on the everybody thinks no, the market is just always going up. Like everybody forgot the the the last crash, but it's happening. It's it's not a matter of if it's it's just when. Yeah. Uh now we spoke about that signal distortion. I hope that's clear. Now, the next one is moral hazard. You flip a coin. If it's hats, they win. If it's tails, you lose. I would say that if you think about it, it could even be hats, you lose, tails, you lose. And everybody, and all it's always they win. Why do I say that? Like commercial banks and the central bank take massive risk because the commercial banks know that the central bank of Canada is the lender or last resort, and that that's the whole reason why the central bank was created as a safety net to the commercial bankers. How crazy that is. Right. So, what happens here is that in case of a bank failure, they're just gonna socialize the losses. And what do I mean by socializing the losses? Whether that's a bail-in or a bailout to the bank, it's the Canadian that's going to pay the consequences, not the bankers, not the government. It's the Canadians. And why do I say that? Well, if we do if if a bank fails and we do a bail-in, it means that now probably the the bank is going like what happens with a bail-in is that the bank takes all of the assets of the depositors, the money, right? They take they take those deposits and they redistribute that amongst the depositors. So if if they do a bail-in and you had a thousand dollars inside of your banking account, after the bail-in is complete, you might end up with $500 inside of the of the of the savings account. And people might might say, oh, but those in those deposits are insured, sure, up to a certain amount, but what happens if a couple of banks fail? Where does that money come from? Like, yeah, let's first start talking about that, where that money comes from. So, what happens, guys, once the CDIC starts paying for those insured deposits? Like the CDIC doesn't have an unlimited wallet. Yeah. Once, like if we have a very serious failure, it will it could happen that the CDIC is just overwhelmed, and now we have to find money somewhere else, and we either do a bail-in, which I already explained, or a bailout. And if we do a bailout, that money, guess where that money is gonna come from? The central bank of Canada. And once they do that, we already explain what happens. Every time they fire the print impresses, your money it's worth less. So that's that moral hazard that we explain. George, the last one of the implications.

SPEAKER_00 22:04

The enabler of unrestrained power. So here's the uncomfortable truth. Without a central bank to monetize debt, governments would have to tax us directly for every war or lockdown. Is the central bank the primary reason the state has been able to expand beyond the consent of the governed? So what does that mean? The central bank is the reason the state has been able to expand beyond the consent of the governed. So basically, what's happening is the government is given the ability, the power to run $80 billion deficits. And it doesn't matter what we say or do, they are going to go ahead and do it. They have unrestrained power. Even if we do vote them out, the next government's going to come in and run a deficit as well. So we're just caught in this trap where we can't get to balancing the books. How do we do it? I mean, you got to raise revenue or you got to decrease expenses, or both. So this is this is the vicious cycle. And the government with the central bank is unrestrained. They can print money whenever they need to. And they're always going to tell us it's for our benefit. But what does it do to the cost of living when they do it? And we're seeing the effects. We're living the effects.

SPEAKER_01 23:27

Yeah, and those effects, we live through that every single day, unfortunately. But you see, I think we as Canadians have the power to turn things around. Absolutely. I don't think it's already too late. Okay? And I'm an immigrant. I wasn't born here, but I lived through socialism. I lived through a country that used their own central bank to print the currency to oblivion, where we had people making art out of paper bills. That was the norm, right? And if you study history, if you look at um the Weimar Republic, which was uh Germany before World War II, this is exactly what was happening, right? Like people were using paper bills to go and use as a heating source at home, for example, because it was cheaper, yeah, it was cheaper to burn money than to pay for fuel, and and they had to carry the money around in wheelbarrels because they needed so much of it.

SPEAKER_00 24:40

Correct. Correct.

SPEAKER_01 24:42

So I personally saw a lot of that stuff happening, and I I don't want that to happen here, and that's why we are creating this podcast. This is why we are talking about this stuff, because I want every everybody to know what's going on, and we won't go down without a fight. Okay. And the goal here is to bring this conversation to the parliament in Ottawa. That's that's the end goal. But before we can reach to that, we have to hit critical mass. And hitting that critical mass is building that 10% that we have discussed before. What does that mean? If we can get at least 10% of Canadians to cut ties with the banking system to start flowing their assets, their money, their capital into the insurance sector, then we have a chance at winning this fight. And why would that make a difference? Because the insurance sector cannot print inorganic money. That is a key difference here, and that's what we're trying to achieve. To move money into a financial sector that does not have the ability to print the new money and to continue this inflation madness. Not only are that, not only not only that, but it's also a sector that doesn't like the speculation that happens in Wall Street and Bay Street. So they're not part of that. So they're really good at mitigating risk and protecting assets. Okay.

SPEAKER_00 26:19

Here's uh here's a couple words that I I that I really like, um, Jose, when we talk about the solution. The sovereign pivot. That's what we're talking about. Sovereign pivot.

SPEAKER_01 26:37

Love it. It is a pivot. Yeah, it is a pivot. And it starts with you. It starts with you there listening to first of all educate yourself to investigate mode. Like, don't take a word for granted. Go out there and start asking, like, fire it up a chat GPT session if you want, and start asking questions about central bank and how that works, you know. That's how it starts. Like, you need to educate yourself and know what's going on, and then take action. And by taking action, not only are you going to be in a better financial position, but you're also gonna be part of that 10% where we are building a movement that's gonna take back control of our future, our financial future here in Canada. So I say to people, hey, we don't we don't need to wait for an election to fix it. Like you could actually vote with your wallet. Yes. So we want to pivot. We're doing this, yeah. Pivot to infinite banking and doing it with a doing it with purpose, right? Like know exactly why you're doing it. That's a key.

SPEAKER_00 27:49

Because it's the only logical escape from the rigg system, right? As as Jose talked about, we have to move from move our capital from the banking system into the insurance system. So we build the infinite banking firewall. So we've established that the central bank manipulates interest rates and currency value, and they do it by design. So we want to move our capital into the private contract of a whole life policy, and we can structurally insulate as sovereign capitalists from these risks. Because we are now protecting ourselves against inflation. We are guaranteeing the growth of our capital, we're guaranteeing the ability to put our capital to work, protect it, grow it, keep it, use it. And we're taking all those risks away that we've been exposed to unknowingly, unwittingly, um, or maybe uncaringly.

SPEAKER_01 28:51

Doing so in one of the most tax-advantaged, if not the most tax-advantaged instrument, financial instrument in Canada. Absolutely. Absolutely. It's just the best the best place to do that. Because you some of you may think, okay, why don't we use crypto for that? I mean, crypto is still it's not seen as currency. And all the growth that happens in crypto, it you could incur in capital gains or capital losses. Like it's it's not highly speculative. Highly, highly speculative. Like highly speculative, right? Yeah. And it doesn't have, for example, uh the great benefit of a tax-free debt benefit that goes to the next generation. Why don't we use gold and silver? Well, gold and silver is part of our portfolio, but it's not something that you can easily leverage. Like you need to go and liquidate, or you need to go and ask for a line of credit backed up by gold and silver. And because it's a volatile asset, again, you're not gonna get access to 100% of your value in gold and silver. So you see, there's some constraints. That's that's why that's why participating in dividend paying whole life insurance policies always come up as the first option to make this happen. George, anything you want to say before we close this uh episode?

SPEAKER_00 30:08

Yeah, I mean, um we want to be we want to create our own signals, we want to start the silent revolt. So we want to pivot into a different system, create your own personal banking system, create capital that you can put to work. And in in our previous episode, we talked about the perfect investment. Well, this is exactly what we're talking about. It has all the attributes that we want to grow, protect, and transition our capital to the next generation.

SPEAKER_01 30:45

I love it. Well, thank you everyone for listening, and uh, I'll see you all on the next episode. Thank you. Thank you. See you later. This episode of the Sovereign Capitalist Podcast was provided with the understanding that the staff and contributors of Asteris Capital Advisors are not herein engaged in rendering tax, legal, or financial advice. For such matters, please consult your own tax legal or financial advisor.