How the Wealthy Leverages Secret Networks and Classified Intel

0:01Hey guys, Eric Su here. So the following is a clip from the Leveling Up Founders Mastermind that happened in Beverly Hills. And you're going to hear from some amazing founders, some amazing marketers and investors. And this was a private event that happened. So again, you'll get a preview of it. If you want to learn more, you can go to levelingup.com slash founders. Once again, levelingup.com slash founders. And without further ado, enjoy the clip. How many of you know who this is? Paul Tudor Jones. Ever heard of Paul Tudor Jones? He's a billionaire trader and he's very well known for predicting the stock market crash of 1987, Black Monday.

0:36And so this is Davos, World Economic Forum's meeting in 2020. Now, I'd like to point out that this was January of 2020. January of 2020. And if I played this clip, they're actually asking about some of the things that concern him. One other thing I'd like you to notice is the stock market was going straight up. They asked him some of the things that might concern him, and he talked about COVID. And if you remember back to January, nobody was talking about COVID. I did a couple videos on it, and everyone's calling me a tinfoil hatter and a conspiracy theorist and all these things. And if I play this clip, you'll notice that he has some extensive knowledge on the R-not values and everything that a lot of people were talking about in like April.

1:18And the announcers, they should be in the know. This is CNBC here. And they're completely caught off guard. Like they don't really know what's going on. You can tell he knows about 100 times more than they know. And so my point here is that usually the financial insiders, the Paul Tudor Jones, the Warren Buffetts, the George Soros, the Stanley Druckenmillers, they're going to have this information long before anyone else, even in the mainstream media, let alone just your average investor. So another thing I'd like to point out here, looking at this CNBC article from just about the same time that emphasizes this point, is business leaders in Davos privately expressed concerns about China's coronavirus outbreak.

2:00This was in Davos. And if you read some of the key talking points down there, they actually set up a private breakfast with Donald Trump to say, hey, this is something that you really need to pay attention to. This is a big deal. So the question becomes, how did these guys get this kind of insider information? It's not illegal. There's nothing nefarious there. But the way I look at it, it's like this network of global intel for this insider information that we just don't have access to. I was talking about this on a video the other day. And I said, it's probably you could imagine that the scientist at the Wuhan lab, assuming that's how it got out, they're scared about this.

2:36They know how big of a deal this is. They call their local politician. The local politician in China calls the higher ups. And then through that chain of communication, that goes out to the Jamie Dimon types, the banksters. They're going to know about this. And all of a sudden, they're calling their best clients and the guys that they're buddies with. And that's going to go to George Soros. That's going to go to Paul Tudor Jones. And what they're going to do is they're going to have their analyst or someone that works for them fly out to China and talk to that scientist directly. How concerned should I be about this?

3:07Is this fear-mongering or is this something legit here? So then the question becomes, once they determine that this is something that they should be concerned with, what do they do? So here's an article that talks about that same time frame. This was a Senator Burr, and I don't want to pick on the Republicans here because the Democrats did this as well. But what they found is they were doing basically insider trading. Now, it was legal, but this guy was the head of the chair for the Senate Intelligence Committee. So this guy has access to information way before we do. And so what was he doing in February when he was being briefed on these things that I would argue Paul Tudor Jones was briefed on back in 2019?

3:54He went to his own personal account, and he sold most of his shares. But I don't think that's what's most important. What's most important is what did he buy? And we can see my arrow right here. Oh, good. February 12th, Burr ordered the purchase of approximately 1.2 million of Treasury securities. of treasury securities. So he sold all of his stocks and he bought treasuries. So why do you do that? Because when you get into a recession or into some sort of financial crisis or black swan event, et cetera, think of the GFC. That's a great example. What you want to own are treasuries. And you want to specifically own the long end of the curve.

4:34Because let's say a 30-year treasury, you buy that at 4%. If interest rates go down to 3%, then you got a 20 % capital gain on that, in addition to the fact that you're getting that interest rate, and there's no counterparty risk. So if you have your cash right now in Silicon Valley Bank, there's counterparty risk, right? If that bank goes under, you're basically a creditor of theirs, and you could take a haircut. And people say, George, FDIC. Okay, great. FDIC has about$180 billion in it, but there's about$18 trillion in deposits in the United States. So FDIC cannot cover that. So again, this is why these financial insiders with billions and billions of dollars, when they see the storm clouds, they're out there buying treasuries along into the curve.

5:18So there's an inverse relationship between the price and the yield. So when there's more demand, the price goes up, the yield goes down, and that's what makes the curve invert.