Editor’s Notes: In this lecture, Professor Jiang of Predictive History explores the provocative theory that global financial collapses, including a potential upcoming US economic crisis, are not natural occurrences but are instead carefully engineered by “game masters” in transnational finance. The presentation delves into the historical origins of this system, tracing it back to the 1688 Glorious Revolution and the creation of the Bank of England, which established a model where profits are prioritized and losses are socialized. By examining the 2008 financial crisis and the rise of the Chinese banking system, the speaker argues that capital is currently being orchestrated to shift away from the United States. Ultimately, Professor Jiang suggests that this transition may lead to the engineering of a new economic center, with Israel potentially becoming the next major hub for global trade and investment. (March 31, 2026)
TRANSCRIPT:
Introduction: How Financial Collapses Are Engineered
PROFESSOR JIANG: Today, I want to look at how the global economy will collapse, specifically how the US economy will collapse because of this war. Now the argument I want to make to you today is that financial collapses do not happen accidentally or naturally. They have to be engineered. And this is a very hard concept for us to understand.
So in economics, there’s something called the boom bust cycle, which basically states that in capitalism, you have the economy booming, then suddenly, for whatever reason, it collapses. It’s called a boom bust cycle. And the idea is that if you study economics, they teach you that this is just a natural part of capitalism because in good times, people spend too much money. They become overconfident.
And so then they waste a lot of money, and then it collapses. The economy churns bad, and so you have to focus on being more lean and efficient and resilient. So think of, you know, gaining weight. You gain too much weight, and then you feel bad, so then you lose weight. And that’s the idea of the boom bust cycle.
The problem though is that no one can explain properly how and why suddenly the bubble pops. What is the mechanism or trigger for the collapse? If you study economics, you will never ever know the answer.
A Speculative Exploration
So we are going to focus on speculation today. Again, the Internet will knows this, but I’ve never studied economics. I don’t know much about economics, but I’m curious as to why this happens. Why is it that bubbles pop? How do economies rise and fall?
So I’m not an expert. I’m not even a professor. Yes, I understand. But what I do is I engage in speculation for fun, for entertainment. So just see this as a fun class where we’re going to explore some fun topics that have no scholarly basis. So just keep this in mind, guys.
The Boom Bust Cycle: Andrew Ross Sorkin’s Explanation
So let’s look at very quickly the main explanation for why booms and busts happen. And this is from Andrew Ross Sorkin, who is probably the most influential financial journalist in America. And he wrote a book called 1929, which looks at the stock market collapse of 1929, and he offers a very good explanation as to why it happened.
So, Emma, could you read for me, please?
EMMA: Of course.
“Lengthy uninterrupted booms like the one in the 1920s produce a collective delusion. Optimism becomes a drug or a religion or some combination of both. People lose their ability to calculate risk and distinguish between good ideas and bad ones.”
PROFESSOR JIANG: So again, this is a set explanation for why there’s a bubble burst — because it’s delusional, and then it’s like you fly too high. But you’re not supposed to fly, so then you fall down to the ground eventually. It’s just gravity. The idea of gravity.
But what I want to show you today is there’s actually another explanation, which is that this is all being engineered. There are people behind the scenes who have the power to cause economies to rise and to fall.
How Banks Create Money
So let me give you an example of this. Let’s just say you’re a bank. Your job is to take that money, save it, and then use it properly in order to promote the economy.
So let’s just say we put a million dollars into a bank. What does the bank do with it? The bank then lends it out to entrepreneurs. Maybe I want to start a restaurant, and that’s why I borrowed a million dollars from the bank.
Now, question. How much money is the bank now? It’s going to be zero. Right? If I take in a million dollars and I lend out a million dollars, I should have zero — that’s just basic math. But that’s not the answer. The actual answer is two million dollars.
And what you need to understand is that each bank has the ability to print its own money. The bank is a mechanism for liquidity in the economy. And this is a great illusion — a delusion behind the economy where money is just an idea. It’s a concept. It’s a collective hallucination.
The Central Bank and the Interest Rate Mechanism
Now the problem is there are thousands, tens of thousands of banks everywhere. So how do they know how to coordinate together? And this is something else you need to understand about the system. There’s actually something called a signaling mechanism. So all these banks are separate, but they are linked together into something called a central bank. And what does the central bank do? The central bank signals whether or not to lend money or not to lend money. And this mechanism is called the interest rate.
Now, again, if you study economics, what they will teach you is that depending on the interest rate — if it’s low, maybe one percent, or high at five percent — that would determine how consumers behave.
But there’s actually another explanation, which is that the interest rate is not to signal consumers or homeowners to buy, but rather for banks to lend or not. Because the banks, depending on the interest rate, know that their job is to release more liquidity into the system, release more money into the system, and therefore make it easier to take out a loan. But if the interest rate is high, then they know they must not release too much liquidity in the system, and therefore they will make the loan application hard.
So in other words, the interest rate is not set in order to guide consumer behavior. It is set in order to coordinate liquidity in the marketplace. Does that make sense?
How the World Really Works: Plato’s Cave
So these are two very curious aspects of this system that people don’t really understand. So in order to understand the system, I will explain to you how the world works. And I explained this before, but I want to summarize and apply it to this scenario.
So the first thing to understand is that we live in Plato’s cave. Meaning that we’re all chained to the floor and we’re all watching a screen. And behind is this great fire where the elite create puppets so that we can collectively hallucinate our own reality. And this mechanism that allows us to coordinate our imagination is, of course, called money. So think of money as god. And what money is doing is it’s focusing our minds in a certain way that creates our reality.
The Game Masters: Finance and the Global Economy
So because of this concept, this allows us to create the world that we live in today. So remember how the world is structured. You have the empire, but then you have the game masters. Who are the game masters? They’re the people in finance. And this includes the Bank for International Settlements, the World Bank, the International Monetary Fund, Wall Street, and the City of London. These are different financial organizations that coordinate together, and they are the game masters. And what they do is they control how US dollars — which is the currency of this game — move around the system. And this creates, of course, the global economy.
But you cannot allow people to think that there are a set of people manipulating this game, because people will think this is not fair. It’s not transparent. It’s not a clean game. So what you do is you create multilateral organizations called the rules-based international order, like the WTO and the UN, and you make them believe that it’s these impartial organizations that actually control the game. So it’s fair and it’s transparent. It’s accountable to the people.
And then you reinforce this using media, education, and culture. And together, these three will create the values and norms that make us believe that this is a fair, open, and transparent game in which we can all win. So that when there’s a collapse, it’s not because there are people engineering this collapse behind the scenes. It’s because of gravity. This happens naturally in this game. It’s no one’s fault. It’s just like we were too lazy and corrupt.
Countervailing Forces and the Institutions That Maintain the System
So certain things to remember about the system is that this system is not as clean as you think, because there are opposing forces to it. And these opposing forces are such forces as nationalism, or ethnic identity. Then you have social democracy, individual rights. And then, of course, you have religion. So there are these countervailing forces that try to break apart the system.
So then what happens is that there are other systems that keep the system in place and respond to these countervailing forces. And they are intelligence — spies basically — crime, and science. And behind these three forces are three sets of powerful institutions. These are transnational capital, secret societies, and elite families. Some people call them the Illuminati. And underpinning this elite is something called the occult, which we’ll study later on.
So certain things that stand out about the system that you may notice is that transnational capital is also the game masters as well as the global economy. This is important because remember, this system is the parasite and this system is the host. So transnational capital is both the parasite as well as the host. It’s both the game master as well as the player. And this obviously leads to a lot of corruption.
The Origins of the System: The Glorious Revolution of 1688
So then the question is, how do we get this system? Where does this come from? So let me go into some history.
The year is 1688. And in Britain, that’s called the Glorious Revolution. Think of the Glorious Revolution as a marriage between two empires — the British Empire and the Dutch Republic. At this point in history, 1688, the Dutch Republic is the richest area of the world because it controls the spice trade. In this time in history, spice is the most valuable commodity.
The problem with the Dutch Republic is that it cannot defend itself in Europe. It’s easily invaded. It’s also Protestant. And they are being attacked by the Catholics — Catholic France, the Catholic Church, as well as the Habsburgs, the Holy Roman Empire. So what they agreed to do is combine their forces.
What happens is the wealth of the Dutch Republic goes to England, and creates, in 1694, the Bank of England. This is a private bank that is not accountable to the public. What it does is this: it prints money, and who buys it? Parliament buys it.
The Three Characteristics of the System
And this is a massive innovation that allows the British Empire to conquer the world. Because before, if you lend your money to a king to fight wars, that was dangerous — the king could die, or the king could lose the war, or the king could not pay you back. But if you lend money to parliament, which is the nation state, then you’re guaranteed to get your money back as long as the nation is still around. And at this time in history, England is the safest area of Europe because it’s an island protected by the Royal Navy.
So this is an innovation that further changes human history, and there are three major characteristics of this system.
The first is the idea that profits are prioritized and losses are socialized. If you’re a rich person in the world, you want to put your money in the Bank of England because there’s no way the Bank of England loses money. If England goes to fight a war and it loses, England pays for it. But if it wins the war, then you get the money for it. So all profits are prioritized. All losses are socialized — picked up by the nation state, the people. That’s the first thing.
The second thing is that in this system, the way you generate wealth is through activity. And what does that mean? It means wars. If I give you money, you have to go do something with it. You have to go make more profit, and the way you do that is through fighting wars. And that’s why the British Empire started to expand very quickly around the world — because it needed to generate profits for the bankers. This includes, of course, the Napoleonic Wars. It includes something called the Great Game, a war between Russia and Britain for control of essentially Asia, and also the conquest of India, and then the conquest of China. So the second characteristic is that you’re always creating more activity.
And the third thing is transnationalism — open borders. It believes that capital should be able to move around from place to place, and it should build systems in order to move capital from place to place.
The Philosophy of Materialism and Its Role in Shaping Society
Professor Jiang: This is great for the bankers, but the people look at this and they think that this is an unfair system, which it is. So now you have to brainwash the people into believing this is a fair system. And that’s why you create a new idea called materialism, or money is God.
So what was happening was that Transnational Capital, Bank of England, was sponsoring major intellectuals to come up with the major ideologies to support the idea that money is God.
These include John Locke, who argued that private property is a God-given right. It is an inherent right as much as freedom, as much as happiness. And he’s a founder of a theory called empiricism. And empiricism states that we can only know what we ourselves experience. It is not feasible, it is not practical, to try to come up with a theory of the world beyond our experience. So don’t think about God, because God is beyond our experience.
Then you have someone named David Hume. And David Hume argued for skepticism. And skepticism just says that everything that you know is actually not valid, because what you know is just based on your belief. Rome is the capital of Italy. Have you been to Rome? Probably not. So where do you learn this? You learn this in school by memorizing this fact. So basically, we should be skeptical of everything we know, because most of the stuff we know is either custom or habit. That’s the idea of skepticism.
Utilitarianism, Liberty, and the Rise of Materialist Philosophy
Professor Jiang: So now the problem is, skepticism and empiricism just means that we don’t really know anything, and God doesn’t really exist. So how can we design society? And so this creates a new idea called Utilitarianism, which is saying that if it is useful, if it gives us pleasure, it must be good. If you take drugs and you are happy with it, it must be good. If you like spending money, it must be good.
This is from Bentham, and then John Stuart Mill will make some adjustments to it. But this becomes the very concept of liberty. Liberty just means that you are free to pursue as much money-making as possible, because that is the ultimate good. That is what gives you the most pleasure in life — spending money. That’s what liberty is. If a country prevents you from making money and spending money, it’s an evil dictatorship. A good country allows you to enjoy the pleasures of making money.
These are the three major philosophers of materialism, of British liberty. Then you have people like Marx come in, and you introduce the idea of dialectic materialism, which says the world is one of class struggle. It’s not between God and us. It’s not between the divine and the material. It’s one between the poor and the rich, and that’s it. So Marx is taking out the divine from the equation.
Then you have Darwin, the theory of evolution, which basically says we’re just animals. That’s all. We’re not divine beings. We’re all just animals. Then you have Freud — sex is awesome, guys. That’s what we should be doing. We should be making a lot of money and then having as much sex as possible, because that’s what we are. We’re just apes. So this becomes the very foundation for the idea that money is God.
Transnational Capital Moves into America
Professor Jiang: So what then happens is that Transnational Capital, which has conquered the British Empire, is now seeking new opportunities for its investments. So where it goes next is, of course, America. The problem is that the Americans just had a revolution to get rid of the British Empire. So the Americans don’t want Transnational Capital. They don’t want the Bank of England or the City of London to come in and conquer them.
So what happens is the City of London, the Bank of England, they use agents in America. And these agents include John Rockefeller, Carnegie — Andrew Carnegie — JPMorgan, and Vanderbilt. They will by themselves monopolize different industries with the resources and the capital of the City of London and the Bank of England. John Rockefeller monopolizes oil.
And then what will happen is that these very powerful agents of the City of London will get together, and they will create a system modeled on the Bank of England. And this, of course, is called the Federal Reserve System. 1914. And strikingly enough, after the Federal Reserve System is created, three things happen. The first is that America enters World War One. Then you have the 1929 stock market collapse followed by the Great Depression. And then 1941, America joins World War Two.
So the Federal Reserve System means that, like Britain, America is now controlled by Transnational Capital. It’s the same system now where profits are prioritized, losses are socialized, and where it’s important to open the country up to capital movement.
America’s Unipolar Moment and the Road to 2008
Professor Jiang: As we know, America wins World War Two, and what it does now is that it tries to move the system around the world, specifically Japan and Europe, where it is able to control the territory. And eventually, it fights a Cold War with the Soviet Union, but then it wins. And then, basically, after the collapse of the Soviet Union, for the next twenty or thirty years, it has complete control over the world — something that we call a unipolar moment.
And during the unipolar moment, what happens is that manufacturing from America shifts over to China, and the market completely focuses on finance. This leads to the 2008 Great Financial Crisis.
The Subprime Mortgage Crisis Explained
Professor Jiang: So let me provide some background about the financial crisis. You don’t have to know everything. I’m going to give you a lot of details, but I just want you to understand the basic structure of it.
What allowed the Great Financial Crisis to happen is something called subprime. Subprime just means that you’re lending money to people who can’t pay you back. In this context, it’s lending money to poor people to buy homes. And before, banks didn’t want to do that.
But there are certain things that happened to make subprime happen. The first thing is that Bill Clinton really wanted to increase minority ownership of homes. He wanted Black people to buy more homes. But Black people were historically poor, so the banks didn’t really lend money to them. And that’s why Bill Clinton encouraged the government to help minorities buy homes. That was a noble goal.
The development that happened, which is more important, is that in 1999, Bill Clinton repealed something called the Glass-Steagall Act. The Glass-Steagall Act just said that if you are a retail bank and you take money from depositors, you cannot engage in risky lending. But if you’re an investment bank, a private bank, you can engage in risky lending. It was trying to mitigate risk in the system.
But by repealing the Glass-Steagall Act, what you do is you combine retail and investment banking together. And so these banks now become very large. And once they become very large, they need to create financial vehicles in order to generate more profit.
The Yen Carry Trade and the CDO Machine
Professor Jiang: At the same time, because America has the unipolar moment, everyone wants to invest in America because they think America is the safest place to put your money. This includes the GCC, China, Europe and its pension funds, and also Japan. Japan is investing in America because of something called the yen carry trade.
And this is one of the dumbest things in the world, because at this time in history, Japan is suffering from deflation. No one’s spending any money. So what the government does is that it lends money out to institutions at zero percent interest. Now the institutions are supposed to take this money and promote more liquidity in the system, but instead what they do is they take this money and use it to buy US treasuries, which provide five percent pay. So you’re borrowing money at zero percent and then lending it out at five percent. That’s the yen carry trade.
So there’s massive money coming into the US financial markets, and they need to create more investment vehicles for investors. And this creates something called CDOs — Collateral Debt Obligations. But basically, it just means subprime.
The idea is that mortgages are a good investment because people have to pay a monthly mortgage. Therefore, you’re guaranteed certain money at the end of the month. The problem, of course, is that subprime could lead to default. But at this time in history, no one was concerned about default because of the idea of “too big to fail,” which means the system is structured so that everyone is involved. And if these homeowners default and the banks default, then the entire economy collapses. So the idea is too big to fail — the system will keep on going.
Does it make sense, guys? So this is one big Ponzi scheme.
Why the 2008 Collapse Was Not an Accident
Professor Jiang: We know for a fact that in 2008, this system collapsed. And for the longest time, what we believed is it’s because the defaults were too many, too much, and so this system had to collapse. But if you look at what happened, what you will discover is that’s not true.
The banks could just choose to roll over the default. Meaning, okay, you owe me a thousand dollars for the mortgage, but you can’t pay me. What do I do? I say, pay me back next month. Next month, can’t pay me back? Don’t worry, pay me back the month after. I can have the system keep on going. Remember, this money is just based on an illusion.
But it collapsed. And that’s something that we’re going to look at today.
As you can see from this chart, at first, what was happening was that the government was the one issuing out loans — the light blue. But then, because this industry was so profitable, private banks started to come in and issue their own loans, and these became very risky loans. And this led, of course, to 2008, when the entire thing collapsed.
Who Profited from the Collapse?
Professor Jiang: So the big question is: why did the financial market collapse? This is the CDO issuance. As you can see, it’s generating a lot of money for these private banks. And then suddenly, in 2008, there’s this massive default. It collapses. The question is, why did this happen?
You’re taught in an analyst class that this is just a law of gravity — if you go too high, you’re going to fall. But what people don’t tell you is this: there are actually people who made a lot of money because of the collapse. John Paulson. How much money did he make in this collapse? Twenty billion dollars, guys. That’s a lot of money. How did he make his money? He made his money by betting that the housing market would collapse.
So think about this. I lend a million dollars to Amber. Everyone has to pay back ten thousand dollars. But then suddenly, Amber can’t pay me back. If I tell Amber she can’t pay me back, she has to give me her home. Then I lose my investment in her. So I don’t do that. I keep on letting her live in the house, pretending that she’s paying me back even though she can’t.
But then Vincent says to me, “Hey, I bet you that Amber will not default on her loan, because she hasn’t defaulted in the past ten years.” He’s so confident. So I say, “Sure, Vincent, I’ll take this bet with you.” Now what do I do? Now I make Amber default, because now I can make a million dollars from Vincent.
And that’s how it worked, guys. You think it’s a very complicated thing. It’s not. It’s all a giant scam, because only a few people control the entire system. This is how you make twenty billion dollars in this game. There are people buying mortgages from you. But there are even more people who bet that you will not default on these mortgages. So you take your money from the least informed people, and that’s why the system collapsed — because you’re going to make more money from collapsing the system than just letting it go on.
Consolidation After the Crash
Professor Jiang: This is John Paulson. This is Jamie Dimon, and he also profited from the bank collapse. Why? Because when these banks collapse, you can start to consolidate the banking industry. JPMorgan started to buy these other banks that were losing money, and JPMorgan is now the largest bank in America.
Also, guys, look at this. Before 2008, most homes were actually owned by individuals. This is 2008. The gray represents just individuals — they might have one home, they might have ten homes.
The Bank of International Settlements and Global Financial Power
PROFESSOR JIANG: Okay? But they’re basically individuals. The blue are those who own more than a thousand houses. And then the dark blue are those big banks that own, like, a hundred thousand of homes. Okay?
So before 2008, you can see, like, most people were in the gray. Okay? These are just individuals. But then at the collapse, you see the blue and the dark blue go way up. Why?
Because these homeowners lost their homes. And so these banks and these companies could come in and buy them on the cheap. Does that make sense? So the great financial crisis of 2008 destroyed millions of lives, but it made it profitable for a few powerful individuals and institutions. Okay?
The Private Equity and AI Bubbles
PROFESSOR JIANG: Alright. A major consequence. So then you’re like, okay. No. No. No. No. Mister Jiang, you don’t get it. It’s gravity. Eventually, a bull has to collapse.
Well, okay. Well, today, we have two bubbles. We have something called the private equity bubble, private credit bubble, okay, where private banks lend money to private companies. And people say it’s two trillion dollars, and it hasn’t collapsed yet. Why?
Because the private banks allow the private companies who are losing money to keep on going. Do you understand? The private banks don’t come and say, “Hey, you guys are losing money. You should declare bankruptcy, and I’ll take whatever you have.” Well, I think they would lose a lot of money that way.
Okay. Do you understand this idea? These folks can keep on going forever. Don’t have to collapse.
Another big bubble today is something called the AI bubble. Right? These companies, NVIDIA, OpenAI, their AI products don’t actually make any money. Like, ChatGPT does not make any money. In fact, it loses money every time you use it. Okay?
Because it’s more expensive to run ChatGPT than it generates in revenue. But it’s a huge bubble, and it hasn’t collapsed because these are just a few companies lending money to each other. Okay? That’s all it is. It’s a giant Ponzi scheme. It’s an inside game.
So both don’t have to collapse. They collapse when it’s profitable for a few individuals to make it collapse. Alright? Okay.
China’s Rise After the 2008 Financial Crisis
PROFESSOR JIANG: Another idea I want you to understand is that after the 2008 great financial crisis, this created problems in the global economy. And so what happened was Transnational Capital decided to save the global economy by allowing China to rise. Okay? So this is not known. But one major consequence of the great financial crisis is that Transnational Capital encouraged China to print money.
Okay? So I’m going to show you how. But first, let’s talk about the main mechanism to allow this to happen. It’s called the Bank of International Settlements. Okay?
The Bank of International Settlements is in Basel, Switzerland, and it’s considered the central bank of central banks. So every nation has a central bank, okay, that determines interest rates, but the BIS is the central bank of central banks, which coordinates all central banks. Alright? And it is the most powerful bank in the world. Alright?
And you think that, okay, this must be public. No. It’s not public. It’s managed for the best interest of powerful people in the world. Okay?
The BIS and Nazi Germany
PROFESSOR JIANG: Alright. So this is from the book, Basel, Tower of Basel. Okay. Can you read?
“Despite Hitler’s bluster and planning, Nazi Germany had not achieved autarky. It needed to buy vast amounts of raw materials to manufacture armaments and to feed, heat and clothe its population. Swedish steel, Romanian oil, Portuguese tungsten, even South American beef, all had to be purchased and paid for in hard currency. Nazi Germany needed a financial channel to the neutral countries. It ran through Basel, which is the main reason why Nazi Germany did not invade Switzerland or Sweden. These neutral countries were far more useful to the Third Reich as monetary hubs on the transnational financial network than as extra swaths of German-controlled territory.”
Wait. So what this means is this. In his speeches, Hitler promised independence from the global financial order controlled by the British. Okay? But you can’t really do that because you just have to buy things from other places. But then you’re like, I need a bank to lend me money to buy things, but also help me process specific transactions. Okay?
And this is the idea of Transnational Capital. And Transnational Capital, they don’t really care if you’re evil. They don’t care. All they care about is how can I make money?
So this bank, the Bank of International Settlements, and Transnational Capital, was helping to fund the Nazi war machine because it was profitable to do so. Okay? And you’d think, okay, after Hitler lost, the Americans would surely say, the Bank of International Settlements is evil because they helped the Nazis. Therefore, we should destroy the Bank of International Settlements. Okay? But that’s not what happened. After World War Two, the Bank of International Settlements became even more powerful. Okay?
The Marshall Plan and the BIS
PROFESSOR JIANG: Alright. Can you read, Amber?
“Marshall Aid came at a price, remodeling European societies on the American model of consumerism and consumption. Hoffman’s propaganda arm produced pamphlets, posters, leaflets, radio programs, and even traveling puppet shows that extolled the American lifestyle. The American dream — a house in the suburbs, a car, and numerous household appliances — was projected as a near-guaranteed benefit of American-styled freedom. The key to this was increased productivity on American-style production lines in a transnational free market. For that to happen, and for the money to flow freely, new mechanisms of international payment had to be constructed with the BIS at the center.”
Okay. So the world is run for money. Okay? The world exists. These organizations exist in order to facilitate the easy, fluid movement of money around the world and make money god. Okay?
Shifting the Center of Gravity to China
PROFESSOR JIANG: So after 2008, the Bank of International Settlements had a problem in that the global economy was slowing down. Europe had lost a lot of money. America had lost a lot of money. So their solution was, let’s shift the center of gravity from America and Europe to China. And you’re like, okay. How do you do that then?
You do that with something called the exchange rate. Okay? Exchange rate is very simple. Renminbi to USD. Okay?
So remember how the interest rate in a national economy is a singular mechanism as to whether or not to increase or decrease liquidity. The exchange rate in the international marketplace is a signaling mechanism to tell other nations whether or not to trade with another nation. Does that make sense to you guys?
Let’s look at what happened. So for the longest time, the Chinese currency was trading above eight to the US dollar. Because, remember, the US dollar is the main mechanism of global trade. And then, starting around 2008, it started to increase in value. Okay? And so now the world knows, oh, I should trade with China.
And China is like, well, okay. My exchange rate is higher than before. Therefore, I should buy more things from the world. Okay? But not only that, but now that I have access to commodities from the world, I need to promote my economy to use these resources. So I should spend more money on infrastructure. I should build more high-speed railways. I should build airports. Okay? And that’s what China did.
You see how in 2008, just as the American and European economies are suffering, the global economy is suffering, the Chinese economy started to have a higher exchange rate. Okay? And it kept on going higher and higher and higher. And then what are they trying to do with it? Trying to buy stock from around the world with it. Okay?
Again, this is a signaling mechanism where the Bank of International Settlements is saying to the world, you can now sell to China. We will guarantee China. Alright? And that’s because the BIS said, let’s try to buy more things from the world.
And this happened starting around 2008. Right? This massive surge in imports. And because all the commodities were coming to China, trying to spend these commodities, it started to build infrastructure. Right?
And how did it finance the building of this infrastructure? Bank loans, guys. Bank loans. Alright?
China’s Banking System
PROFESSOR JIANG: So this is China. Right? Look at this. Two thousand and eight, basically, China, US, Japan, Europe, their economies were about the same. The bank systems were about the same. But starting with 2008, wow. Look at this. This is all being orchestrated by the Bank of International Settlements, by a few people working behind the scenes. Look at how crazy this is. Alright?
So what does this mean? It means that today, China has the largest banks in the world. This is JPMorgan, the largest bank in America. This is Chinese. This is Chinese. This is Chinese. This is Chinese. This is Japanese. Okay?
The top four banks in the world are Chinese. Why? Because in the banking system, debt liabilities are also assets. Do you understand? All this money that the Chinese banks have are just liabilities. Okay? So this is how the system works. It’s all just an illusion.
The thing about the Chinese system that prevents it from imploding is the fact that all debt in China is localized instead of nationalized. Alright? So even though these Chinese banks are heavily in debt, they’re doing debt in local areas, not national areas. Okay? And all this means is that the Bank of China does not have that much debt relative to, say, the Bank of Japan. Okay?
So debt in Japan is nationalized, debt in China is localized. Right? Okay.
China’s Manufacturing Dominance
PROFESSOR JIANG: So another major consequence of the growth of the Chinese banking system is that China started to export its goods around the world more. Okay?
So as you can see, in the year 2000, America really dominated the world in manufactured exports. Okay? But by the year 2024, look. It’s basically the entire world buying Chinese exports. Alright?
And so this is a deliberate strategy of Chinese Transnational Capital to move the center of economic gravity from the United States to China. But the problem with China, the reason why China has not become a hegemon, is that China is not interested in being a hegemon. In other words, military power.
Also, as China is expanding its manufacturing capacity to the world, who’s upset now? The United States. Right? And so what the United States does is impose tariffs. Okay? Does it make sense? Alright.
The Shift Toward Israel
PROFESSOR JIANG: So in other words, okay, even though in theory the goal of the bankers is to maintain the game. Okay? That’s all they care about. So they want to switch from America to China, but it didn’t really work because China doesn’t really want to take responsibility of being a global reserve currency as well as having military bases overseas. Alright?
So China doesn’t want to do this, and America won’t let China do this. So your only option now is Israel. Okay? And that’s why I believe that this war in Iran, what it will do is shift the center of gravity from America to Israel, because Israel wants to be the center of the world, not China. Okay? Does it make sense, guys?
Engineering a Financial Crisis
PROFESSOR JIANG: Alright. The other thing you have to understand is that for this to happen, Transnational Capital needs to first collapse the American economy. And there are different ways they can do that. Right? They can collapse the private credit bubble, then collapse the AI bubble, and collapse both at the same time.
And why would they want to do that? Because as a banker, as Transnational Capital, you make your money through activity. Right? When people go and do stuff, whether it’s entrepreneurship or starting wars, they have to go do stuff. And right now, America has a lot of problems. Okay?
So let’s look at America’s problems. First is aging, where the elite are now older and older. Therefore, they are less active. They are less energetic. They’re less entrepreneurial. Okay?
Then you have something called quantitative easing, which is like too much money in the system. You have too much money in the system that people do stupid things like gamble. Okay? Alright?
And the last problem in America is you can’t win wars. Okay? Like, this Iran situation is showing that the American military is not as strong as you think it is.
So as Transnational Capital, you see these three things. Okay? The population is getting too old. There’s too much money around, so people do stupid things like gambling. And the American military is not that great. Then you’re going to shift your capital from America overseas. Okay?
But before you do that, what you want to do is engineer a financial crisis so that you can make as much money as possible. Just like the 2008 financial crisis. Okay? So we don’t know when it’ll happen, but we can be sure that it will happen. It’ll be sudden. Okay? Does that make sense, guys?
America’s Long-Term Strategy
PROFESSOR JIANG: Now you’re like, wait a minute here. Why would Trump and Americans allow this to happen? They must know this is coming. And the answer is because it is in the long-term best interest of America for the economy to collapse and for Transnational Capital to go elsewhere.
And this is something we’ll discuss next class. Okay? What the long-term American strategy is. Transnational Capital is leaving America. So then they’re going to be like, “Oh my god. Bank of England, City of London, these parasites are leaving? Thank you. Get out of here, man.” Okay?
And what will happen is once they leave, America will probably have a much brighter future.
The Great Reset: Transnational Capital and the Shift Away from America
Q&A Session
AUDIENCE QUESTION: So it seems like America is in a disadvantaged situation, but they know what they are doing and they are just sending parasites outside of their country and having a more long term benefit. Is that right?
PROFESSOR JIANG: Okay. So this is something we’ll discuss next class. Okay? But this is not a deliberate strategy. Alright?
Because if you think about it, any of the collapse will destroy a lot of wealth in America. It will probably create conditions for civil war in America. It will create a lot of pain. But for certain people, for example, Donald Trump, believe that this pain is necessary in order for America to become great again. Okay?
He said his motto is what? “Make America great again.” And how do you do that? You get rid of these parasites. But to get rid of parasites, guys, it’s a painful, painful process.
It’s like a cancer. Right? Have you guys been through cancer treatment? It’s painful. Chemotherapy, they do surgery on you. You have to eat this crappy food all the time. It’s a painful process. Okay? So transnational capital, it’s a parasitic force. It’s a cancer on the American host.
They have to get rid of it, but it’s going to be a very painful process that’s going to take a long time, years, possibly decades. Okay?
Israel as the Next Hub for Transnational Capital
AUDIENCE QUESTION: So if transnational capital is leaving America, then how would you think this shift would impact the global economy, or would it at all?
PROFESSOR JIANG: Yeah. Okay. Alright. So this is something we’ll discuss later on. Okay? But let me just show you how this shift happens. Alright.
So right now, you’re in America. And the best place for you to shift is Israel. Okay? Why? Because you’re interested in activity. You’re interested in putting your money in a place where it’s going to grow. Right? And why is Israel growing? Well, because of the Greater Israel project.
Right? They want to conquer the Middle East, but then it has to rebuild, right, after the war — rebuilding. And then what it’s going to do is become the hub of global trade. Right? Because Israel controls Africa, and this is something we’ll discuss next class.
Okay? So this is why you want to invest in Israel for these three reasons. Why? Because you’re going to keep on fighting wars to achieve the Greater Israel project. Wars are profitable. Wars are the most profitable enterprise in the world. Okay?
Second is that they have to rebuild after all this destruction, so they need capital. The third is they will control global trade because of the location. Okay?
So this is why Israel is a smart investment for transnational capital. I’m not talking about us, okay, with a thousand dollars. I’m telling you, trillions of dollars will probably go into Israel. Alright?
Economic Collapse as a Tool for Capital Flight
PROFESSOR JIANG: So, to leave America, what you want is a stock market collapse. Okay? An economic collapse. Why? Because economic collapse not only allows you to leave with as much money as possible, but also allows you to buy out distressed assets. And when I mean distressed assets, I mean resources, which include water, oil. Okay?
So you want to create as much damage as possible because then it’s easier for you to buy these resources. Does that make sense? Alright.
So these guys plan decades ahead. But transnational capital, what they do is they’re trying to create as much chaos as possible because in chaos, there’s profit. Like, if I’m sitting around doing nothing, you can’t make any money. Okay? But if you are fighting each other, there’s blood on the streets, you can make a lot of money. Alright? Does that make sense?
Okay. Any more questions, guys? Okay. So we’ll talk about what happens after this financial shift next class. Okay?
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