In Part two of our discussion with Mel Mattison we explore the role of the securities entitlements during financial crises. This is a subject brought to light by David Rogers Webb in ‘The Great Taking.’ In times of crisis, corporations implement backup strategies, like plan B for drastic situations where the insolvency of major financial institutions might trigger the verge of collapse for derivatives. In the event a financial entity fails to honor winning bets in derivative markets, creditors can seize securities in brokerage accounts as collateral. This scenario, referred to as ‘The Great Taking,’ elicits concerns over asset confiscation, affecting not only stocks and bonds but also tangible assets like property and vehicles.

The Bank for International Settlements (BIS) advocates for Central Bank Digital Currencies (CBDCs). CBDCs preserve the fractional reserve system yet provide benefits such as instantaneous settlement and seamless cross-border transactions. Central banks perceive alternative payment systems like stablecoins as competition due to their existence outside the banking sector.

Russia’s move to distance itself from Western financial institutions and prioritize gold as a reserve asset signifies a break from the US dollar system and a possible resurgence of gold as a monetary metal. Central banks have resumed buying gold after decades of disposal, possibly contributing to an increase in its value. Gold provides advantages over digital assets like Bitcoin due to its untraceability and absence of intermediaries or complex accounting on the blockchain.

Mattison underscores the significance of possessing assets outside the present financial framework with minimal risk. Tangible assets such as real estate and precious metals like gold, silver are favored alternatives for maintaining worth during a dysfunctional system. The speaker expects continued expansion in the stock market’s speculative phase but anticipates instability upon the onset of the crisis. He suggests farmland or open land as a more secure alternative to residential property. Despite his confidence in Trump, he acknowledges that Trump alone cannot remedy the fundamental issues. The political landscape is intriguing with various forces influencing events.

Time Stamp References
0:00 – Introduction
0:28 – Securities & Great Taking
7:00 – Bail-In for Banks
9:29 – CBDC Plans & Implementation
14:30 – Russia & Banking System
18:18 – Solutions
22:00 – Crypto & Privacy Attacks
28:05 – Protecting Wealth
33:55 – Optimism & Trump
40:00 – Religious Symbolism
44:23 – Palantir & Peter Thiel
48:48 – Concluding Thoughts
51:37 – Wrap Up

Talking Points From This Episode:

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• Concerns around seizing of assets as collateral when a financial entity defaults on derivative bets.
  
• Central banks consider adopting CBDCs for benefits like instant settlement and seamless cross-border transactions, while viewing stablecoins as competition. The Lummis-Gillibrand Act mandates stablecoin storage at Federal Reserve Depository Institutions for data access.
  
• Central banks are resuming gold buying and Russia prioritizes it as a reserve asset, contributing to its increased value due to untraceability and absence of intermediaries.
  

Guest Links:
Website: https://www.MelMattison.com/Quoz
Twitter: https://twitter.com/MelMattison1
LinkedIn: https://www.linkedin.com/in/melmattison/

Mel Mattison is a writer, investor, and financial services veteran. Leveraging over twenty years’ experience in the realm of high finance, he brings real-world authenticity to his fictional narratives. Mel combines this insider knowledge with a critical eye toward the economic forces that shape all our lives. With a knack for deconstructing jargon and making the complex understandable, he sheds light on the sometimes dark and confusing corners of finance. Mel holds an MBA from Duke University and studied creative writing at Loyola University Chicago. His recent novel, Quoz: A Financial Thriller, delivers an epic ride packed with action, intrigue, and a healthy dose of economic realism.