teeth tightening they're starting to ease back i think it's something like their balance sheet is shrunk by two hundred eighty five billion dollars over in japan where they've had something like thirty years of quantitative easing and then they . came along and they jumped it up to q q e qualitative and quantitative economic easing q e party is drying up even at the bank of japan despite repeated speeches to the contrary as of september thirtieth total assets on the bank of japan's elephant tiny balance sheet dropped by five point four trillion yen which is thirty three billion dollars from a month earlier to five hundred thirty seven trillion yen or four point eight seven trillion dollars four point seven trillion dollars is the bank of japan's balance sheet and they said it was the fourth month over month decline and a series that started in december this is what that looks like here is the total

bank of japan total assets that's a little scoop down that it's had but this is where even omics begins that's the q q.e. and that is in two thousand and thirteen now that means crude free potentially so two thousand and eight you had a global credit freeze and then we had a phenomenon in japan because of their rates being close to zero point zero zero zero zero one percent as being the world's first to borrow and then reinvest in low yielding securities to reliquefy the global balance sheet of the global banks in this huge carry trade as it's called and this extend and pretend as if the banks were not insolvent from two thousand and eight to twenty eighteen now and twenty seen if there's a credit freeze like there is happening in japan if interest rates start to go up because banks are lending to each other then the commo know is opened. and the

revelation is seen by all that all these major banks in japan deutsche bank in america are insolvent and that they'll once again come to the central banks and say we need q.e. four we need another bailout we need twenty five trillion freshly printed us dollars or we're going to go into a massive recession and in fact that's not going to happen because the interest rate environment now after thirty two years of going down is entering into a secular bear market for a bond which means a secular move in interest rates higher that could last five to ten years we're heading into bond nucular winter the bond winter the bond market. could go under it could go worst in fukushima it could go worse than godzilla it could go worse than for you know bad sushi on an empty stomach well actually i'm going to skip ahead to the conclusion that wall street offers because of course some might

say oh japan will face a debt crisis but they can't face a debt crisis essentially because they have too much savings in cash i just am by far the most over indebted country in the world their relationship to its economy has decided that there will be no debt crisis a debt crisis would force japan to brutally cut its budget for social services and raise taxes by large amounts to make ends meet japan has decided that it would never come to that instead there may be a currency crisis or an inflation crisis or both which would spread pain more evenly yeah don't you cry so the end if there is say the end is going to be inflated away to make sure that these banks don't go under which means that they carry trade on the basis on the yen the cost goes up even by one tenth of one percentage point thus making an enormous amount of the multi quadrillion dollars derivatives market instantly and solve it so this is always been the point. you

know to mix metaphors even more that tokyo is kind of like the churn noble of the global financial markets and it looks like it's blowing right now it's a mt vesuvius it's another metaphor it's another analogy i've run out of it just to put it into context because remember the united states government mostly i'm sorry not the united states government but the fed has bought mainly government bonds and government backed bonds like fannie mae and freddie macin higher quality stuff. bank of japan has been buying stocks e.t.f. equities all sources but again to put this into context what we've seen with even omics and if they're on winding the b.o.j. has been buying mostly japanese government securities and short term bills but also equity e.t.f. the japanese reads the real estate investment trusts and corporate bonds japanese government securities are the largest asset class on the balance sheet by now the b.o.j.

has acquired about fifty percent of all outstanding japanese government debt from about fourteen percent and late two thousand and twelve this means that the government prints money the yen then they use that money that they print to buy back their own bonds and their own stocks and that's called debt monetization and if you look up definition of banana republic it will say this is a frickin banana republic because a they're buying their own debt but in japan they call that quantitative easing not that monetization with the canard that well it's temporary but it's been thirty years now and it's never going to go away and now the reaper must be made the grim reaper of the bond market has appeared with this with this guy and he's looking at the global bond market and he's going to. in this obama apocalypse it's just. paper and it's. going to be the greatest financial collapse ever

love it of course the bond apocalypse thing that has been a great widowmaker. many people have been waiting for this for decades because it where. we're in a thirty something year bull market in bonds and everybody always promises it's about to finally collapse but maybe it might be that time now but you know what i want to also say that seems to go on forever and ever is another article in the past week or so which is about hard never ending presence in afghanistan because of course we first went bankrupt as a nation in one hundred seventy one when we couldn't pay for the war in vietnam. we were founded because of that you know no taxation without representation that was actually in one thousand eight hundred sixty five eight hundred sixty eight

seven hundred sixty five when our monarch the british empire was basically bust for from after several wars and they needed some taxes so you know attack never ending wars tend to end empires so if the dollar and the us dollar bond and all its minions through. the japanese bonds and stuff like that if this is all falling apart if that. empire debt around the world does collapse we are still in afghanistan it would be quite fitting because afghanistan has been not a widowmaker but. an empire the death of empire it's been a murder of empires for many for the past hundred years or so. are we still doing in afghanistan and spending forty five billion dollars a year and erik prince once every dime apparently erik prince is back

and this guy never goes away he's always there with a mercenary army ready to go in and he's proposing quite something quite amazing so according to the senate subcommittee on federal spending oversight we are spending about forty five billion dollars a year in afghanistan about one billion of that amount is spent for economic aid to afghanistan and five billion is being spent on the afghan forces according to the report that leaves thirteen billion dollars we're currently spending on the u.s. military forces in afghanistan and twenty six billion on so-called logistical support it's that thirty nine billion dollars say erik prince has his eye on so he wants to send in two thousand five hundred of his own special forces to replace fifteen thousand american military troops who you know by the way have the whole backing of the u.s. military and the navy but he's somehow going to do it on the cheap with these two thousand five hundred mercenaries collect the full amount the thirty nine billion that we're spending now but he says he's going to reduce the bill for the american

population oh yeah well the price just. barely cost thirty five billion for him to commit genocide and you know afghanistan of course is the number one source for lithium and that's why america stays there because collectively the population is going insane and they need the lithium just to keep some cells balance for another day. the other interesting thing there is that what he wants to send in two thousand five hundred to. place our military but he also proposes that his force of six thousand private contractors in total that would be there would be supported by air through a fleet of contracted aircraft flown by joint teams of afghans and contractors according to the times this is a curious one as well he's got he's alleging that he has some sort of private air force that he could call upon which is probably quite expensive component of

our entire military apparatus. you know the air the aircraft and the aircraft landers i suspect erik prince in fact died. been really animated in a video game and with a little artificial intelligence has gone rogue so the avatar erik prince in this video game atmosphere of war craft is dictating terms to supine us military pentagon budget administrator and authorizing tens of billions of dollars to imaginary forces to get that lift you know why because he's insane it's apocalypse now to the root of apocalypse now this makes harvey keitel in you know bad lieutenant looked like the flying nun. well i mean i also want to point out in the last minute here that we also have the fact that pakistan has gone to the i.m.f. for some more money billions of dollars they need pakistan and afghanistan but particularly pakistan are quite crucial to china's belt road policy and that is you

know. you have to look at the long term we as a nation don't have economic policies beyond the next trading day but political and military policy they are looking at long term and long term they only see china so if they're you know if they're. white we might be there it might not be about saving taxpayers money like erik prince things it's more about containing china containing china seems to come back to containing china. well ok let's take a break and when we come back let's do more of good stuff. north korea's history. seventeen years we are one of the only few countries

that has seventeen years of peace to go to the met with them we are. nuclear free status country and this policy is working for us and we're trying to communicate you know this denuclearized you know situation may contribute much spitzer to their security then the. nuclear you know progress. i did the war planning for the principle force provider command in the united states military or for years i've worked on this region for years i do not understand this saudi arabia is the greatest state sponsor of terrorism in the world still today and yet we all here on that we lie when we say that

we right blatantly lie when we say that and moreover we know where the lie. pranking gave americans a lot of job opportunities i needed to come up here to make some money i could make twenty five thousand dollars as a teacher or i could make fifty thousand dollars a year truck so i chose. to drive trucks people rush to a small town in north dakota was an unemployment rate of zero percent like gold rush is very very similar to a gold rush but this beautiful story ended with pollution and devastation a lot of people have left here i don't know too many people here anymore just slow down so much they lost their jobs got laid off from the american dream is changing

that's not what it used to be. and it's a tough reality to deal. welcome back to the geyser i'm max kaiser so i'm going to turn to susan blum to find out more about susan powell's susan. thank you max keiser and i'm delighted to be here at fantastic you know we i've been seeing you know for years of years wherever i go and a couple space there is susan poole well there you go there so what like what do you do in the spaces yeah i'm doing a lot of different things i work for you know corporate america in the software industry and i got it a big point a few years ago and i literally went all in with my career and create a whole new career work for myself i do advisory consulting there's an app to do before in your career where you just literally got swept off your feet and just

committed yourself wildly to something like that is it a new thing that's ever happened before it's a brand new thing and you know i was in the software industry i missed the wave of social media i miss google i heard about big point i'm like this is why i missed both to go in a big car and all and you know i believe that there's something on the aesthetic side of because where it's very beautiful the way that the incentives are balanced and the way that it tends to turn everyone into a maximalist and do you feel that as well in other words you are in the software industry you understand technology but as a human being were you attracted to what i would call the aesthetic of because your thoughts on this idea i absolutely was my motto at the beginning and i love my i thought i was a bit naïve i recognize now it was banking me on banks right for me because i was banking the unbanked was probably the first presentations i heard in an event and i realized like i could be part of something that can change people's lives you know software changes people's lives but this is on

a one on one situation. and i thought naively like that's that's how that's going to happen like everywhere now almost it's just so silly i was a so hopeful and starry eyed and now you know. a couple of years later i see the infrastructure is the technology is the distributed apps being built that hopefully will enable that and such types of applications and uses for the most disadvantaged people in the world yeah there's a sujoy idea that oh yeah big help to disadvantaged people of the world and then there's a huge group of disadvantaged people in the world called americans and they've been cut out of hard money now since one nine hundred seventy one and there are millions of them in dire straits living in abject poverty without any health services and what about right here in america there seems to be a blockade against allowing people to have individual sovereignty and access to hard money like big going what about right here in the good old usa susan pool how are we going to get this message through ok well i want to give you like up my two

cents on the state of what it is and why it is that way you know my whole career is in like sales and business development and somebody was either seeking to solve a problem or to get rid of a pain i don't see a lot of people understanding like how to get rid of the pain of that with bitcoin so there's a gap there are a good point so in marketing you're either escaping the pain or seeking to solve a problem pleasure seeking pleasure or going away from pain essentially is the essence of sales and every ad on t.v. are either you know headache medicine or a car exactly. the bifurcation those are the the two rude stored marketing so the supply is typically it's not obvious what problem it solves at the moment because people are very happy with money very happy with credit cards very happy with the system the inflation is somewhat dulled it's only one or two percent a year ok lose ninety seven percent over one hundred years but over five years

don't really notice it so you don't have the urgency go to countries like venezuela argentina where they do have the urgency and they are quickly adopting hard money. so i guess that would that would be your point is that they've got the urgency that they're getting there escaping the pain of fear i mean their pain could be death their pain is the worst pain ever their pain could be starving even though we do have quite a disadvantage part of our society in america are about people individuals in america there's food pantry you know there is just a bit different and i think you know to personally motivate yourself. you can motivate yourself but then life can motivate you and in those countries their governments are motivating the urgency around with the coin speaking of different governments so you are part of an e.u. regulatory forum how does the e.u. compare to the u.s. or are they just looking to the u.s.

for guidance well this is a great topic because you know you probably know this as well but every country in the world wants to be or every entity every country domain whatever wants to be that entity where they get the most out of block pain and quite right and so just like many americans complain that a lot of technology is going to leave the country because of regulations or a lot of regulations europe is looking like that korea is looking like that and everybody wants to have the landscape for infrastructure builds and lead the way and so europe is no different than any other entity like well yeah there are number of countries that are vying to become quote so let's roll and including switzerland yes. rico switzerland different territory what do you see on the regulatory front what countries are doing the right thing to doing it right and will attract critical mass obviously getting it wrong. well i would see most of the conversations i have of people is that they're americans are concerned that america

is going to get it wrong and having worked. in a prior role i got really exposed to just how much. learning is required for people in the regulatory structures to catch up to all of us who've been in the center three immersed right so they're still managing their current monetary systems and now to try to catch up so it's hard for a second because in america regulations are not necessarily an impediment to grow for example violent or all kinds of regulations and they became a billion dollar company who have other companies like. like uber economies. they're not. flouting all kinds of regulations or they've become a billion dollar industry so in the finance space people don't abide by regulations and they create for example the birger of citi group travelers insurance corporation was illegal at the time but they changed the laws to accommodate it in

after it was consummated so why would we. just you know. the. full speed ahead forget the regulations we're just going to take this to where we need to get it in let god sort it out well it's such a great question and i believe the major differentiator there is that those were centralized entities for profit and big as we know being decentralized like who is the we to lead that charge all of us are doing it individually by being involved in it i use to coach teach. classes for free on saturdays here in las vegas just to do my bit of like some people what a multi-state while it is you know so that scales to everyone we could all collectively have that force but i don't see the force in those kind of things were too large entities merged or somebody built a new or that just kind of went viral i'm queen so it's just of the debate

different to me so right so where does this leave regulations in this space are they going to need to create new regulations. some have suggested just for this new asset class or somehow fit into. the current scheme well i think if i had that answer would be very popular you see the tea leaves reading the tea leaves ok which way you think this is ok i like that question well i have a lot of contacts in d.c. and the f.c.c. right now is very open to people with entities like coming in and talking about you know they go with their lawyers and they're saying we're thinking of doing this so they're open to information the regulatory structure is i believe. yeah. sorry forgot the question that's ok oh repeat and summarize it would being the professional journalist i'm not so in other words you got your ear in d.c. and they're open to hearing they're talking to folks at the f.c.c. and they are trying to i think be at the same time accommodative of the steel

industry but they've got to adhere to securities like this thirty three and thirty four as i have said many times before technology people come to me into the question of technology very come to me and they say my interpretation of the securities law is that we figured out how to bypass it with soft or some of the something else i'll say you know it's for you and your interpretation of securities law it's up to the f.c.c. in their interpretation of security out and they've come down quite hard said you know what there's nothing j. clinton said there's no way c.e.o.'s that he's seen this new security that's pretty clear that he's now believes that this you see this dominion over every single and they're out there pulling back on these i see young people have to send the money back what's your take on the boom of twenty seventeen i mean what did you think when you were seeing that i was completely stunned they had people from all over the world contacting me on linked in saying we'll give you one hundred thousand tokens if you will like pump our i c.e.o.

and i turn down one hundred percent of them i try to put things simply like if my family was going to get ripped off by this would i want to even. think of doing that and i didn't have time to vet any of them so i just one hundred percent know. but what's the weirdest question is why do we never hear about all the people who lost all their money in i.c.u. or all their big quaint i never hear them complaining anywhere do you well this is known on financial circles that people who are victims you know tend to stay quiet because it's not something you want to make you know brag about but on the other hand we have this you see because putting pressure on i.c.a.o. companies and offerings they are quietly returning all the cash. and this is happening in dozens of. the cash being returned and we also have instances where companies are converting the token into equity nice there's a lot going on. i've always asked that question because i'm thinking i'm sure

people i know i've had that situation but they don't talk about it and i also want to say obviously there's some great innovation through some of these i c.e.o.'s and you know it's hard to tell which ones are good and which ones are fake or which require an enormous amount of due diligence and you know you get like a thirty or forty of these fish tax in a day. cycle happened so spent a lot of time in vegas you live in vegas i spend a lot of time here i have a few places where i hang my hat because i travel so much and yeah i was going to mention one of the thing on ice you know so you know now i'm getting what i like about this year is now i'm getting and she's coming coming to me that are public companies saying you know we're interested in you being an advisor because you have a network of service providers and can you connect us and we trust you or someone you know what i mean and so that's exciting for me now i'm interested in the i'm interested in those i have one that the c.e.o. took a company public he wants to tokenize something in his vertical market wow so kind of like the next wave in my view of the tokenization and. so according to susan

poole we have entered a new wave in the tokenization market which is the experimentation phase is behind us and we see. to be getting into a more institutional or friendly marketplace and so this form of fundraising is seems to be not going to go away which you say that's a fair statement i don't see it going away i think the regulations will play play a role in who is going to do it i mean do you have to be highly financially savvy or you have to be tech savvy so who's going to do those i c o's will change depending on regulations and where their time but also i want to say you know it's interesting that corporations you know in america are interested in digital assets and tokenization and now they're coming to this community to say who do i talk to where do i go and i mean publicly traded company three you know the mash national baseball league is offering tokenized bobbleheads as of people who come to the park

and it's a huge hit in a something like that could really force adoption anywhere at a time susan full thanks for being on the kaiser report well thank you very much already that's going to do it for this edition of the concert for us being nice guys from station every want to thank our guests for joining kansas on twitter as kaiser for the next time i. don't have to do this government official love president i don't have peace in the system. i've got it so i'm too liberal for the system designed for people like. bloggers. different people who are here for different reasons but also john we also hope.

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just read you'll find yourself by the number one place you do i mean yeah i mean i mean political pressure on that god you've. told enough security to mr knows when to pull your bundled up business models used by american corporations. he's sold them good mental disease has been able to use. the solution. in association with. newton he saw as it is just somebody with deleted data and investigative documentary. ghost war on oxy.

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