Davos Elites Know The OLD SYSTEM Is Breaking

0:00Hello, everyone. The global monetary order is breaking and we are entering a bipolar world. Contrary to popular belief, AI may create a labor shortage, stablecoins are crushing legacy payment systems, and we're going to dig into whether Bitcoin just becoming way too corporate these days. We're live today from the desk of Anthony Pompliano.

0:27Before we get into today's episode, I need your help. My goal is to get to 1 million subscribers on YouTube. The people are saying we're not going to get there, but with your help, we're going to accomplish the goal. Hit the subscribe button and let's get into today's show. Our first question today is what are your thoughts on global leaders and what they're saying at the World Economic Forum? Now, I think that there's one major message is that the elites know that things are breaking. And I got two examples to show you. The first is Howard Lutnick. He explicitly said yesterday that globalization has failed.

0:57Take a listen. We are in Davos at the World Economic Forum. And the Trump administration and myself, we are here to make a very clear point. Globalization has failed the West and the United States of America. It's a failed policy. It is what the WEF has stood for, which is export offshore, far shore, find the cheapest labor in the world, and the world is a better place for it. The fact is it has left America behind. It has left the American workers behind. And what we are here to say is that America first is a different model, one that we encourage other countries to consider, which is that our workers come first.

1:47We can have policies that impact our workers. Sovereignty is your borders. You're entitled to have borders. You shouldn't offshore your medicine. You shouldn't offshore your semiconductors. You shouldn't offshore your entire industrial base and have it be hollowed out beneath you. You should not be dependent for that which is fundamental to your sovereignty on any other nation. And if you're going to be dependent on someone, it darn well better be your best allies. Now, on top of that, at Davos, the WEF co-chair and BlackRock CEO, Larry Fink, the big dog of finance, he openly acknowledged that the global elites have lost public trust as well.

2:33Take a listen to this. We believe that outside the United Nations, this is the largest gathering of global leadership of the post-COVID period of time. For many people, this feeding feels out of step with the moment. We hear all about the elites. And how does that play out in an age of populism? How does an established institution make a difference in an era of deep institutional mistrust? But it's also obvious that the world now places far less trust in us to help shape what comes next. If the World Economic Forum is going to be useful going forward, it has to regain that trust. So why exactly is Howard Lutton saying that globalization has failed?

3:25Why is it that you've got Larry Fink saying that all of a sudden the elites and the institutions have lost trust? Well, Ray Dalio has got a pretty interesting way to think about this. He believes that the global monetary order is breaking. What he's talking about here is that there is going to be a bipolar world. We have the United States and the Western Hemisphere pulling one way. We've got China and the Eastern Hemisphere pulling a different way. Take a listen to what Ray thinks is happening and why it's important for your portfolio. The monetary order is breaking down. OK, what I mean by the monetary order is that fiat currencies and debt as a storehold of wealth is not being held by central banks in the same way.

4:10And that there was a change. The biggest market to move last year was the gold market, far better than the tech markets and so on. And the U.S. markets underperformed foreign markets because of the fact you could see it in the numbers of the central banks and so on. So let's just look at the fact that on the other side of trade deficits and trade wars, there are capital and capital wars. And so as we're looking at that, and you reported what the stock market and so on, but you didn't report that the gold market is also up three. We did say that earlier this morning. It's up to record levels again.

4:52And silver. If you look at what is happening and why it's happening and who's buying it. Now, it's pretty interesting to hear Ray Dalio talk about this. He obviously went back and he studied debt crisis and looked over centuries what's happened in financial markets. Now compare Ray Dalio, who seems pretty bearish on what's occurring and the fact that central banks don't want to hold those U.S. bonds. Compare that to Trump, who literally said this morning he thinks that the stock market is going to double. Take a listen. I mean, our stock market took the first dip yesterday because of Iceland. So Iceland's already cost us a lot of money.

5:26But that dip is peanuts compared to what it's gone up. And we have an unbelievable future in that stock. That stock market is going to be doubled. we're going to hit 50 ,000 and that stock market's going to double in a relatively short period of time. So there you have it. The theme of WEF, the World Economic Forum this year, is that globalization's failed. The elites and the institutions, people don't trust them anymore. Ray Dalio thinks that the monetary order on a global basis is breaking and Trump thinks that the stock market is going to double. Regardless of what you think, now is the time to pay attention.

6:00We have a lot of things changing and we've got a lot of different pieces of volatility in financial markets. So keep your head on a swivel out there. Geopolitics and finance, they're coming together. They're getting thrown into a blender. And my guess is the world's gonna look very different 10 years from now. For our second question today, we have a great one. Will artificial intelligence destroy jobs? I look at this two different ways. What's gonna happen in the short term? What's gonna happen in the long run? In the short term, I do think that a lot of people are gonna struggle, especially people who are new to the workforce.

6:30If you just graduated college and you don't have a really technical degree or you don't have a lot of work experience and you haven't been somebody who's a self-starter, gone on the internet and actually built a portfolio of work, you're gonna have a hard time because most entry-level jobs, they can be done by software now. And if you don't believe me, just go onto X and search around to see all the different demos that people are posting. You can go and do sales. You can do really light legal work. You can do marketing. You can create content. You can do all kinds of things with these AI agents.

6:57And so people who are young and not having a lot of experience, they're gonna struggle in the short term. But also in the long run, I think the answer is very different. And this is not something people are really talking about. I originally saw this from Jonathan Ross, who's the founder and CEO of AI chip company, Grok. He says that he doesn't believe AI is gonna destroy jobs in the long run. He actually thinks the opposite is true, that we are going to need more humans working, that there's gonna be a labor shortage. Here's exactly how he thinks this is gonna happen. There's three things that are gonna happen because of AI.

7:26The first is massive deflationary pressure. This cup of coffee is going to cost less. Your housing is going to cost less. Everything is going to cost less, which means people are going to need less money. Because you're going to have robots that are going to be farming the coffee more efficiently. You're going to have better supply chain management. And what that means is people will need to work less. The jobs that are going to exist 100 years from now, we can't even contemplate. 100 years ago, the idea of a software developer made no sense. A hundred years from now, it's going to make no sense, but in a different way because everyone's going to be vibe coding, right?

8:03And influencers, that wouldn't have made sense a hundred years ago. But now that's a real job. People make millions of dollars off of it. So what jobs are going to exist a hundred years? So number one, deflationary pressure. Number two, opting out of the workforce because of that deflationary pressure. and number three, jobs and companies that couldn't exist today that were going to exist and are going to need labor. We're not going to have enough people. So this is pretty interesting to hear from Jonathan. He basically thinks that AI is deflationary, that there's going to be people who opt out of the workforce because of AI, and that you're also going to get a bunch of new industries that emerge that need new people with new talents that it can go to the work and actually build these companies.

8:43Regardless of what you think about artificial intelligence, this is the story of the labor market. Short run, I think that there's a headwind, especially for entry-level workers. Long run though, I actually agree. I think that AI is going to create more human jobs. I think that people are going to have choice whether they want to work or they don't. And Elon Musk recently talked about the idea of universal high income, an age of abundance. I think that artificial intelligence, synthetic superhuman intelligence, that's what's now available in your computer. That is going to change the world in a very interesting way.

9:13And I think that investors need to pay attention because the winners and losers of the past might not necessarily be the winners and losers of the future. For our third question today, stable coins have become very popular. What is driving this adoption? Now, I don't think people quite understand just how popular these assets have become. I recently saw this stat from Binance Research. Stable coins, annual transaction volume hit$33 trillion. That's nearly doubles Visa's volume of$16 trillion. So think for a second here, we have stable coins that are now two times the annual transaction volume of Visa, the most popular payments network in the legacy system.

9:48Now, what Binance Research calls out is that the velocity of stablecoins is about 110x. That's the turnover per year versus traditional Fiat M2 money supply velocity of 1.4x. So when you think about this, it basically means that stablecoins have become popular because they're available 24-7. They can be used at any time. They can actually be used from anywhere. And there is high liquidity and low friction. That means that you're reducing friction in the system. So of course, people want to use this more. It's cheaper, it's faster, and frankly, it's just a better experience. And it can be done by anyone in the world at any time.

10:24Compare that to the legacy system. If you've ever tried to go and send a wire or go and actually do an ACH, sometimes you even have to tell the bank what you're doing with the money to get your own money out of the bank. All of those friction points are obviously things that slow down the velocity of money. They slow down the usage of fiat cash. But now what we've done is we've taken that fiat currency, We've simply digitized it in the form of a stablecoin. We've put it on a blockchain on the internet. And we said, anyone with an internet connection, have at it. More liquidity, cheaper, faster, available 24-7 from anywhere in the world.

10:54No wonder stablecoins are winning. And my guess is that there's a lot of panic going on at these legacy firms because they realize where the world's headed. Don't view this entire system in a static mode. Yeah, of course, stablecoins are two times bigger than Visa on an annual transaction volume. But imagine 10 years from now, You may not even touch any of the legacy fiat rails. That's how fast this stuff can change. And there is disruption on the horizon. I think that's why you see Visa, MasterCard, and others trying to figure out, what's my crypto strategy? How do we use stablecoins? And what are we going to do to cut this threat off before it takes on our business?

11:28For our last question today, do institutions hold too much Bitcoin? I think this is a very important question. Now, there's two ways to look at this. You can look at the total amount of Bitcoin that's held by corporations and institutional holdings. Binance Research went and they put it at 1.1 million Bitcoin. That's about 5.5 % of the total supply. Of that 1.1 million Bitcoin, about 700 ,000 is held by strategy. Now, when you look at that, they started at zero just a couple of years ago. So there has been a very fast growth from 0 % or so to 5.5 % of the total supply. That's what you would expect as institutions who have a lot of money start to adopt Bitcoin.

12:02On the other hand, they only own 5.5%. If you look at the total supply of money in the world, obviously the institutions and the corporations, they got a hell of a lot more money than let's say individuals do. And so to only own 5.5%, that means that about 94 % of the total outstanding supply is still held by the people. And so the question is not whether they hold too much today, it's that five, 10, 15 years from now, institutional ownership of Bitcoin is going to continue to increase. If Bitcoin's good enough for people, it's gonna be good enough for corporations and central banks. So you're gonna see them, that's what mass adoption is.

12:34But where is the line? Is there a number that we should be uncomfortable with? Is that number 10%, 15%, 20 %? Nobody really knows. But one of the things that I would do is I would look at the legacy system and see what the distribution is between corporations and institutions compared to individuals. And if Bitcoin ends up being more individually held, then that's an improvement from where we were. Of course, I want people to benefit from Bitcoin. I think that a decentralized digital asset that has the ability to resist not only debasement, but also seizureship and censorship. It's a good thing for people.

13:06It gives them back their freedom and gives them back their time. That's why I love Bitcoin. But ultimately, I think that we need the institutions. We need the corporations to adopt this. If you want true mass adoption, that means you got to be comfortable with everybody. Good people, bad people, big people, and small people. Everyone is involved in Bitcoin. And that's what we're getting. I think that's why Bitcoin continues to win. And I don't think that there is a level that we are anywhere close to that is too much corporate or institutional holdings. But again, at some point, we may trigger that line.

13:33And so you've got to decide for yourself. Where would your line be? For me, we're not anywhere close to it. That's it for today's show. Thank you guys so much for watching. Please remember to subscribe on YouTube and I'll see you guys live tomorrow from the desk of Anthony Pompliano.