tv Keiser Report RT October 12, 2021 5:30pm-6:01pm EDT
ah fresh, lucy still don't love, would you? the god that would focus in spread something you would provide them with the quote that that's net present. never ever paula ruth was from what fin the but on with the feel believe what as to the what like you with luck with community. nice. seems to them often when he's got the west. when not going to want to show what the protocol it keeps coming from, from the news or guy lives with us. that's the thing. mildly media has global. oh gosh, slippery music senior to one wonderful, scared little square lip. john thought of it, but are one. why do you think that us them i mean on i besides in that we still live die.
oh ah. eye on max kaiser. this is the kaiser report, you know, sometimes a cigar is just a cigar. stacy? megs, i think you're talking about george soros is his portfolio. well, certainly his theories on reflex 70 because we're going to talk about this because i think for me it helps explain the situation out of china regarding ever grand, the largest property developer in the world. well, certainly the one with the largest debt,
$300000000.00 in debt gone horribly wrong here is from investor pedia, understanding reflexively, reflex city theory states that investors don't base their decisions on reality, but rather on their perceptions of reality. instead, the actions that result from these perceptions have an impact on reality or fundamentals, which then affects investors perceptions and thus prices the process of self reinforcing and tends toward this equilibrium causing prices to become increasingly detached from reality. soros views the global financial crisis as an illustration of the theory and his view rising home prices induced banks to increase their home mortgage lending and in turn increased lending helped drive up home prices without a check on rising prices. this resulted in a price bubble which eventually collapse, resulting in the financial crisis. and great recession, i believe, was taken from george soros is classic. but the alchemy of finance, if i,
if memory serves which i read when i 1st came out many years ago, and it's very important point when you live in a post hard money world starting 971, where it's all fee of money ref, run, sing other fee out money, so there's no such thing as a fundamental analysis. there's no such thing even as a technical analysis because prices are exist in a dream world. hands my quote, sometimes a cigar is just a cigar, which is taken from freud, who probe the sub conscious mind and was able to dig into the dream world and pull out meaning from it. prices are driven by our collective neuroses and it's self referential and self feeding, self reinforcing and as sorrows points out, it creates dis, eco librium or price dislocation. this idea of a efficient market theory fish market hypothesis is complete holcomb. it was never
true, but never more untrue then in the global financial world we live in today. and this is very misunderstood because in the financial price and the wall street journal and in the financial times and on c, b. c. they still claim to the belief that markets and prices are driven by something called fundamental analysis that's false. people's to look at so called technical analysis. that's meaningless. as peter lynch said, another famous money manager technical analysis is perfect and predicting the past . right? so this is a not misunderstood point, i think people, the only thing that's really showing this to be a complete waste of time. that is to say, any attempt to value securities or a global economy in any rational way is of course, bitcoin with us, a kind of another point. right. and also it seems like geo politics and also geo economics is all about competitive advantage. they're all trying to study their
enemy, the other side of the board. and of course, the 2 great power is in the world right now. certainly economic powers and united states and china and china is very closed. mysterious people don't really understand. like we're going to go into this ever grand situation. and as dan collins is pointed out here on the show, they've built all these vast go cities across china ever grant being one of the biggest builders of those. but the deposit from the chinese people were real, they paid cash up front. the article points out in the wall street journal that they don't know what the cash is, where it went to. nevertheless, so it's very mysterious over there. whereas in the united states, like it's too much information and you can't tell what is real and what's not. so this, the american dream, that myth of the horatio alger, that everybody can make it. and property seems if you're looking at the outside from the g o, economics, political chess board of china. you know,
they look at the united states and where every, the middle class grew, because the property prices right. so, to me that seems like the reflexively here is a think that's the reality of how it all happened. like that's way to the middle class of for their huge population there. unless look at what they've done, they went a little bit overboard. i would say in terms of how for in house prices are to the chinese economy. the article in the wall street journal is called empty buildings and china's provincial cities testified to ever grand debacle. the property giant borrowed heavily to develop an out of the way places like lou on. so 1st of all, they had to build an ad away places because shanghai and beijing are tightly controls in terms of the actual land available for property developers. whereas the secondary sitters cities, companies like evergreen, which is founded in 1996, could go directly to the city, you know, board that runs the city and they would kick farmers off the land and take the land
and build the city. so as that was happening, here's the impact of real estate related activities on g, d, p by selected countries. and here's china versus u. k, u s. germany and korea. and as you see, it's gone way beyond anything even like the u. k which is heavily reliant on property prices. it's twice what the u. k has been and at the worst of time they went a little bit overboard in terms of how important property should be to an economy. yeah, yeah. the rules for applying the chinese version of the game monopoly or are quite different. it's actually just open the board, but lighter fluid on the board and set it on fire. it doesn't last long, but it's an exciting game. but nevertheless, the reason for this is the banking system. so on like i'm out of these other economies like the american economy or the british economy, where there is diversification. there is a technology space that is growing. there is different sectors that are vibrant and
contributing to the economy in the chinese economy. it's, it's all about housing because that's what banks are comfortable lending against banks. chinese banks are not comfortable lending against entrepreneurs necessarily . they only want to lend against real estate speculation. so this is created the biggest real estate bubble in history that's now collapsing. and i should note that kyle bass, who has been talking about this for several years and getting a lot of flack, looks like he was absolutely correct. i would point your attention to 989 and japan and tokyo, that was a pure real estate bubble driven phenomenon. it popped in 1989. and that stock market the new k dropped 808590 percent. and the countries now 20 years and to a deflationary recession. so i think it's actually more spectacular in china. we don't know yet if kyle bass is right. we do know for
a fact that the chinese government is indeed, and the proof is in the pudding they are cracking down on many of the oligarchs of their economy, the very multi billionaire wealthy. and that is impacting the, the markets in terms of property like ever grand as dan collins points out, the actual citizens within china, basically paying cash. they don't pay with leverage. they don't pay with borrowing unless perhaps they have a 2nd or 3rd property. but their 1st primary property, they have to pay cash. it's in every grant goes to the international market to lever themselves up. and that's a way for people because it's hard for an overseas investors to get access to china because of their regulations are around having to have chinese you like chinese citizens, have to own the land or own the property and stuff like that. yeah, yeah. 2 examples, i gave the japan example on 1989, the various corporate board members sat on each other's banks. there was tremendous
collusion at the top that led to that spectacular collapse. i would also point your attention to iceland around 2008 or so the collapse of the icelandic economy in the old icelandic banking sector because the icelandic banks were doing something so more now than ever grand is doing. and other chinese property companies are doing they're using debt not only just to create leverage, but to then cross collateralized the debt with other debt players in the system. and so the leverage looks like there might be 50 or $60.00 to $1.00 of those, probably $500.00 to $1.00. it's also important to remember that this is going on a mit the global pandemic emits a di dollarization globally emits d globalization as we have pointed out. so the energy crisis that is happening apparently from the signals that are being sent out of china, that there is an energy crisis. part of it has to do with their trade conflict with australia. so they stopped importing coal from china and from australia, which is now apparently they're secretly also offloading some coal from australia
to mitigate that. but nevertheless, the article here in terms of the reflex city of looking at america and kind of copying it. but going a little bit overboard, essential to ever grants, expansion was a real estate economy across china in which people from developers to finance, ears, to the leaders had an incentive to perpetuate the boom. ever grand found a market for its projects among a range of buyers, including corporate employees and farmers seeking to move to more urban areas who believed values would rise no matter what an assumed beijing will protect them against decline. the same thing happens, and the housing bubble of 2005, 67, that popped in, caused a global financial crisis. everybody assumed fannie mae and freddie mac would have the back of the bond holders. many of them overseas. many of them in china that, that they would bail out the system. i think it was a confucius who once said, never smoke your own belly button lint, i think was a confucius famous saying,
you know, this is an example of what's called your grasp it exceeding your reach. right? what is being attempted to grasp is well beyond the reach, right? you? there is only so many pounds of trash can fit into a 5 pound bag of trash and the spot more than 5 pounds. and it just hit the physical woman's. it's, it's a tilt til game over this things. the suckers are going to happen in a way, you know, think oil is easier to sell than something that's real. reality is harder to sell than the fiction. because you can make up stuff with the fiction. if, if the proof is right there, like it's harder to sell something that's not there. so in terms of like this, this, the economic miracle or the, the boom times of china is like this city lou on which, where ever grand built extensively, they has huge go city there. one thing is like the average salary,
their per year is $3000.00. so these are like apartments that are starting at a $140000.00 an up that they are trying to sell to people or who are in $3000.00, right. we saw the exact same thing in the sub prime crisis in america who had no income yet, or $3000.00 in income were being given $56700000.00 mortgages, with the hope that they get bailed out in america. they did belma, john paul said, hank policy, excuse me, in timothy gardener and ben bernanke, he just wrote a multi $1000000.00 check to bail out, jamie diamond, they are, it's still unclear whether or not the assumption is that beijing will bail out, at least domestically the situation, they might stiff foreign creditors who knows, but nevertheless, that something's going to be rectified here. we'll see. we'll, we'll watch it play out. fascinating. well, we're going to take a break when we come back much more coming your way.
ah, with these people learn from their own experience, how vulnerable of business is to the bank. so you push my business over, the age, pushes me right to the bankruptcy. now i realize we will go this isn't just the back that may be involved in this is the concept. see, funds is, is the lawyers. these people have got you want all their stories at a walk kind of whistle blower. tell people's marriages have broken up, lost their family homes, it is spectacularly devastating for people's lives. we have committed suicide,
but left behind north, the explicitly state that it was the constant intimidation and billing by buying coff resource that late them to i took the spy. obscene these people up nor sold join me every thursday on the alex, simon, sure. and i'll be speaking to guess of the world of politics, sport, business, i'm sure business. i'll see you then. mm. ah. well go back to the kaiser report. i max kaiser it's i'm out of turn to craig, m k f t f for frank. welcome back max, my friend, nice to see j. p. morgan says they're institutional clients for, for
a big going to goal. not just their high net worth client, but actual institutions want bitcoin instead of gold as a hedge against inflation. your thoughts? i don't understand what i mean if that's what you're trying to accomplish. and i would just say j. p. morgan perhaps has a little bit of a conflict of interest there. even they what's known about their position as a bully and back. but yeah. why don't bowl i it's, it's been a heck of a year in the pressures now. that's for sure. and then everything we thought with dr. christ hires instead during price lower and i suspect that will change once we get into 2022. but man, yeah. why not only will be my answer to that. the answer to that is that there's no price discovery in gold. this not allowed to trade freely. it's monopolized by the central banks and big banks and 1000000000 banks, and they have for every ounce of goal to 50000 ounces of paper gold. they don't want the price to go higher, because it's in a free market. that's why the institutions want they want and inflation hedge
that's sensitive to the market. they don't want to inflation hedge that only peter shift, thanks works. peter shift notwithstanding. i'll still hold my flag, know that that market in correction price is not going to last. i mean it's loud k minus last 45 years since 975 where they started treat futures. but at some point there will be enough of the crisis that people will demand, physical gold or the currency system will collapse like they will have to pass and gold will have to be rebellious. it's kind of like this. the trillion dollar platinum going right. just another step along the after losing confidence and fee, i knew it eventually, and then all the sudden nobody wants to do. and at that point, the price is going to be $1750.00 announced and so on both and you know, for their specific reasons and then just wait for this all to play out. talking about this a trillion dollar platinum coin,
which of course became talked about quite well known in the world during the 2008 crisis. it's back and play. and so they conjure up a one trillion dollar platinum coin that apparently there's a loophole in the constitution that allows this fraud to take place. but why not just conjure up a 30 trillion dollar platinum going and get rid of all the debt? great, exactly. it's like got the always the argument about raising the minimum wage. well you can reach 15, want to make it 25. want to make a 50. i mean, because there are economic restrictions to doing that in this idea, the platinum point man always does. he had academics and bureaucrats, the think tanks, they all exist in this kind of closed off world. you know, where everything is like theoretical physics. they divide some formula that completely ignores reality. but in their formula it seems to work. yeah. ok, fine. you can find a maybe a place in that, in the constitution that says you can do this, but in the real world,
for god's sake i, there's restrictions, you can't, i mean the whole system is i. then i said this b r systems dollar based system is based on confidence. there's nothing back in the u. s. dollar or your treasury bonds and notes other than confidence. you don't printing a coin and just say here, this is a trillion dollars. i mean that is a fatal blow to the confidence i got. i wish you try it max. i, i think you'd be remark hilarious to watch the aftermath. but she's, i was on twitter real this week and that guy we all from bloomberg was tweet natalie saying, oh no, this is perfectly fine to do. i'm like, what planet do you live on? yeah. do you want to try that? yeah, go for it. let's see what happens. the only way could come up with a case where the site work is that the same encroaching surveillance day becomes so pervasive, that we effectively have the state not only controlling the fee money supply, but also getting involved in price pricing of the product, pricing,
everything in the economy and controlled command control it in, let's say, in malice, china they could print a trillion dollar coin and make believe it was worth something because the, nobody could dissent, nobody rebel because otherwise you would be executed. how about saw america? is this the course americans i'm like, here's a trillion dollar coin it's, it's literally the biggest joke ever and economics and bloomberg isn't on it. but if you dissent eager to go like, i mean that's the only way this works. and so it's, it is probation, it's everywhere in, take it all the way to the money supply will get out. the central banks are desperately rushing to coke up the central bank, digital currencies. i mean that's, that is the extension final extension of this war on cash to you. and i've been talking about for 10 years. it was, you know, the reason why i like to have something tangible because they can eliminate cash
and make it, you know, your ability to transact things by itself. things are or own a business and in trade with others. if they can control that medium exchange. sure, they just zeros and ones. they can take it all away from you in a keystroke. and so i mean, i know, i think this is all a sign of where we are in 2021. this is not even a creeping authoritarian. it's word terrorism anymore. max, i mean it is jack booted walking, you know, right torch. it's here. i think that's trying to apply them. coin is like they, they the symbol of american authoritarianism. in the 20th century, you find the gone full now. this is the cultural revolution. there is no descent every, it must be lock step with the social agenda socialism already so now in $971.00, of course it's all started when we defaulted on our debt in the united states, close the gold window. it didn't seem to matter at the time. however, the us trade deficit just sit and largest ever on record. that seems to be more
tangible. what are your thoughts? i mean, it's just all parts symptoms the same problem. you know, it, i'm, my site is, you know, we're in our tagline is when it's been preparing for the end of the great change in experiment. and this, you know, john maynard keynes just had this debt based system that you know, worked as long as you could always continue and service the debt. we got that point in 1971 where we could no longer have sound money anymore. because we couldn't continue and grow the economy in a point where you can continue to service a debt and things are just gone exponential ever since. we're 30 trillion dollars now in the debt that we know. and so as we get to 40 trillion and 50 trillion there you get more these crazy ideas. like this trillion dollar coin all in an attempt to keep the plates spinning in this place, like i said, are mainly just confidence, you know, confidence that, you know, there's gonna be some value in this currency tomorrow or next week. and i know
a lot of is a good match, i'm sorry to kind of go off on a tangent, but a lot of this is geopolitical to, you know, all the craziness exiting of afghanistan back 68 weeks ago, gets to confidence in the us. and by extension the u. s. is financial system and so that means we're just taken arrows left and right and competence. and that fails that's. that's when you get for my mom, right. even the charge of the, of the march in the weimar republic. yeah. got worse, and inflation got worse and evaluation currently got worse, and then just those vertical at the end like a hockey stick. and that's when you lose confidence. and that man, that's there, no doubt. that's where we're headed and it just gets it. we're heading there faster and faster because the exponential quality of this, you know, it, it just, it by day very definition. and it works that way. speaking of vertical death prices up 40 percent. that's a vertical move. is that a harbinger of things to come?
you know, we try to convince you this, the system of colleges, you know, they try to commissioner, all one offs, you know, lumber, iron, or steel and copper and natural gas. crude oil. is it 7 or 8 your highs? i mean, these are all a function of the central bank policies. all of this cash has been created around the world, not just in the us for the last 18 months, but really even some 1828 years. and that's what's driving it's, i mean the, the end result of this escape dealing with the coded craziness was always going to be stagflation were never going to be get back to where we were economically and 18 or 19 at the same time. inflation was about to take over in, that's exactly where we're headed now. signs of that are everywhere. and that's, that is, i mean, it's really problematic for the vast majority of people, whether it's in the us or europe around the world because you're just getting squeezed in so many different directions by stagflation and now that creates even
more economic and, and societal unrest. and so it's a boy, it's a very awkward place where we are here in late 2021. and so you know, i look at that coin, i look at the hard money that i own, the end of the sound money that i own. and yeah, the on the price fluctuate, you know, what between go to 40000 a couple weeks. i don't care when i know where this is all headed. and so we just kind of keep your eye on that longer term picture and, and be aware of the certainty of, of how this is all playing out stagflation. of course, back in the seventy's when nixon did close the gold window and you had an attempt to pay for the vietnam or by mass of money printing cause a lot of inflation. and the economy was a stagnating. so you have this stagnation, i believe, even richard nixon at the time made a nod to canes in ism, when he said, we're all kinsey and now he's not so he was aware of it as well.
and now we're at the end in all of this was the emergence of a leader of another country, all salvador. who said, we're going to put this nick sony in keynesian era to an end. we're going to restart the global economy on a big coin standard. and that, of course, is el salvador is el salvador, the new america, you know, noticed the rally up to that point when it officially happened else, or in the very day between all 10 percent. that was coincidence, max, i mean, the bankers are going to fight is every, you know, everything everywhere they can just to give you the updated numbers. now they all, salvador, $30.00 per chiva wallet. air drop is now all in profit, and the amount of people adding to those accounts in el salvador is greater than what's being spent. so i'll, salvador is becoming a hyper bitcoin, an ization because bitcoin is to the concepts that were prevalent in the
constitution. the bill of rights and the declaration of independence. el salvador is a new america boot. kelly is the new george washington. this is the new century. it's happening in el salvador. thanks to pick. going craig, back to where we started max. i mean, it's a little bit of what the g p morgan thing was in el salvador, at least the coins using the place a goal. you know, there you're providing a sound backing to your currency or at least a sound alternative. so more power to my father, i just what i can, what i'm very much concerned with is the risks around the globe. the energy prices that you mentioned backs are going to be a real problem all winter long, especially in europe, where they live out of russia natural gas. the politicians in the central bankers are going to deflect the blame that is solely on their shoulders. and they're going to look for a book and you know who that's going to be. they're going to blame it on. in the meantime, i'll get it going to be a long, whole close hard winter for people like it should be different. you're really
around the plant because energy press are so high. and again, that all comes back to the feet of the central bankers, the politicians, and that comes fraught with danger, geopolitically and then all of the stuff, you know, i like where we're going. we're now making steps to getting some freedom back. but man in between now and then it's, it's going to get worse for it gets better out of time. thanks for being on the cost report. my pleasure. good. seeing you back. all right, that's going to do for this additional kaiser report with may max kaiser and stacy herbert want, i guess, craig, happy of the ts battles report until next time bio. ah ah ah,
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