Financial system

He mentioned cryptocurrency, so he's actually just talking about Bitcoin, uh, and o- and other assets, and this is...

And somebody asked him, "All r- Why don't you just do this all at once?" He said, "Well, I don't wanna crash the entire financial system-"

[laughs]

"...

the world financial system." So e- even he's admitting, uh, how dangerous this is.

Now think about this, Dave.

The reason that we've gotten where we are now with the loss of purchasing power and the dollar so catastrophic since 2022, I mean, it is, uh, the, the worst, uh, years for the dollar.

But outside of that, manufacturing, um, industrials, technologies, all of them are down in terms of jobs numbers.

And then we've also got the bond market, which of course is the base layer of the financial system.

So when you see the bond yields rising fast, it's actually in a very real way ripping apart large chunks of the financial system.

Like commercial banks, their bond portfolios, which is their collateral, collapses in value, so lots of unrealized losses.

And then you've got the stock market, which is just debt fueled.

Obviously, you've got gas prices now in the US where they was back, I think it, they might be above twenty twenty-two.

So a lot of people struggling.

Uh, and at that point, things start to break, uh, not necessarily in the financial system.

What's at the heart of this is a lack of faith in America's ability to keep its economy under control.

[clears throat] I guess, uh, aligned with that as well, you've seen America tend to resort to sanctions using its financial superiority, its firepower within the world global financial system, to impose sanctions on countries like Iran and Russia.

And, you know, like you might go, "Well, those definitely needed to, uh, have those sanctions imposed." But when you are the global reserve system, and then you start using the system to penalize people who rely upon it, it makes pretty much everybody step back a little and think, "Well, what if, uh, there's a US president in power at some stage in the future who just takes a personal dislike to my country or to me as a leader? Um, maybe we should start to look for alternatives to get ourselves out of the US system." And, um, China have really diminished their, their, uh, exposure to US government debt over the past 10 years or so.

Uh, they've been selling down the US government debt.

Yes, we haven't seen sanctions in the same way meted out, but it's not a particularly, uh, large leap to think that at some point that would be an option that he would look at if, for example, the war with Canada continued to heat up.

Um, that if he had some sort of access to overseas assets of Ca- of Canada, that perhaps he would look at, um, uh, sanctioning them in some way or, or, or freezing those assets.

So you can understand why, uh, why some countries might be thinking, "Well, how do we mitigate that risk? How do we potentially, um, hold assets that are difficult to sanction or to freeze?" Uh, whenever this question comes up, though, about, well, is there an alternative to the US? And, and, you know, the US wasn't always the, the backbone of the global financial system.

The UK fulfilled that role for an extended period as well, and we saw this transition, what, through the 20th century when the US became the predominant power.

Um, first of all, I just wanted to emphasize that we have been through different stages of developing the current economy, starting from building the resilience that back in the early, uh, nineteen seventy and eighties, th-the focus back then was building the infrastructure o-of the human capital of the, uh, of the Omani economy, starting from health, education, and other institutions that are related to it.

Then we went into a legal framework, the financial system, the regulatory factors as well.

Then we went into developing what connects Oman with the outside world, and that period was characterized by launching all the mega projects when it comes to infrastructure, be it ports, be it airports, be it all connectivity that differentiates Oman today.

And fast-forward to twenty twenty, most of us still remember that period, with the fiscal consolidation, uh, risk management, balance sheet, uh, r- balance sheet strengthening.

They could affect the momentum with, in term of the diversification story, but they're not necessarily going to change the direction.

And the direction here, at least according to the latest eleventh, uh, five-year development plan, is to focus on manufacturing, tourism, and the digital economy.

But to focus on, to direct investment and to grow these sectors even further, what we need is def- definitely deeper financial system.

But luckily, we already have a very deep and solid banking sector.

The financial system is something we created.

So now it's time to create a financial system that will enable us to make better use of our ecosystem, and to regenerate the function of those ecosystems needed on the planet to live well, you know-

Mm-hmm

... from a food perspective, from a climate perspec- perspective, and of course the most important thing is keeping up with the biodiversity that, that is basically the only thing we have here.

Yeah.

Yeah.

It seems like we live in a, in a, a system, a global financial system that's, that rewards extraction more than regeneration.

Yeah.

I'm Shaun Aylmer.

Australia's financial system is enormous.

APRA, the Australian Prudential Regulation Authority, supervises banks, insurers, and super funds holding more than $10 trillion on behalf of Australians, and the risks facing that system are changing quickly.

Cyberattacks are becoming more sophisticated, artificial intelligence is creating new opportunities and new vulnerabilities, and geopolitical tensions are rising, adding to economic uncertainty.

So there's a set of risks that you know of and you try to, uh, you try to mitigate.

Uh, but there's a- another set, which is the unknown set, which is something that you always worry about.

Do we-- Have we got that covered? Uh, you know, have we asked enough questions? And I think the big thing that you always worry about in APRA is what if some of these risks manifest at the same time? And, um, you know this idea of can you imagine a world where you have a cyber event, uh, at the same time as you've got a geopolitical crisis, at the same time as you've got a slowing in the economic climate? So what does all that mean for the financial system? So we worry about all of that.

D- I mean, we'll get to some of those specifically in a moment, but broadly, as you look at the financial system today and in next year and the following year, et cetera, what is it that you are most worried about? Is it the fact that you can have a bunch of seemingly unrelated events happening at the same time? Or is it cyber? Is it AI?

And depending on the conscious frequency, how this will determine exactly how things play out.

But one of the most prevalent that they're saying is we're pretty much on this trajectory is how the financial systems are going to collapse.

how we are going to continue to have more and more weather patterns that are very disruptive, more tornadoes, more floods, and not all of these things are natural made.

We're going to have more earthquakes, we're gonna have more volcanic eruptions, and that there is a very high possibility that as more and more people open up and embrace who they are, that we begin to create the frequencies that allow our galactic families to more easily make contact with us.

That's, None of it's real.

None of our current financial system, the global financial system, is a scam.

It is a system, like our elections, that is designed to defraud under the color of legitimacy.

And so, no, I don't think we have to pay down the debt.

I'm in a bad mood now thinking about what because the reason I'm in a bad mood about it is because they all know.

Yeah.

The people, we're having arguments about whether or not the American people can have tariff dividends and people are relying upon facts within the current financial system as their evidence for why President Trump can't do what he's saying he's going to do.

Now, that may or may not be true, but those facts... that you're relying on to make your argument are, they're not real.

But how do you actually get millions of people to move their hard-earned savings into the investments that you want them to? Well, you start by creating new investment accounts, new incentives.

You centralize supervision of the financial system itself.

And again, that's not a theory.

This is the official plan coming from the Savings and Investment Roadmap.