and yet they didn't face any you know jail time now you know because of that crime wave that we've been focusing on and looking at because their markets finance and scandal you know the fed's balance sheet they now own 22 percent of all marketable securities which is up from 13 percent last september 2019 so the fed's balance sheet is having to expand as the fraud expands and the fraud can't shrink because you can't taper a ponzi right exactly right that the fraud has been going exponential with goldman sachs j.p. morgan and all the banks in this fed has been soaking up all the bad debt that had they kept on their balance sheet these banks would have had to declare insolvency. and as a result america is now losing out in the global geo political race to china i think there's a direct connection it's a direct connection and now we're at a stage where frankly we also broke that point in

a dollar on the show you know rather right the point now in history where the central bank cannot bellow out itself if it's the only boat in the water in other words america sprung a leak it's sinking i'm geopolitical stage to china and to bail itself out it's it's trying to. you know shovel the water out of the boat and then they put it back into the central bank so they're there doing this that's how they're bailing themselves out and of course they are sinking again we've talked about this in previous episodes it's just an inevitable thing it's not like if it were france who are the empire right now they would be doing the same thing if it were brazil they would be doing the same thing this is the inevitability and what we're telling you is a spare pair for such inevitabilities this is what happens this is why you know the city's trap is when a rising power always ends up in conflict with a shrinking power and. we hit that moment in like 2 years ago when it was

clear that huawei the chinese telecoms giant was way better and faster and better you know their products was a cheaper and better than any product in the west in terms of 5 g. technology so they were beating us and technology so i want to look at one of the former biggest tech companies in the united states and how we chose it's not like we're saying it's because that's a good guy or that's the bad guy these are choices that were made this is these are choices that apparently get made throughout history because that's why you know empires always collapse the same way they always make the same sort of choices over the last 20 years i.b.m. has bought back $136000000000.00 of it stopped its current market cap is $111000000000.00 and you can see from their banks of when they bought back a huge amount in any one given year and imagine if they had just allocated back in 2014 or 2012 you know

a $1000000000.00 of it to their corporate treasury into bitcoin it would now be worth 300000000000 not 111000000000 all right this is why stock buybacks used to be illegal because the companies just committing countable ism on itself and instead of putting money to work to develop markets develop new products research new products they're just manipulating earnings so that the executives get big payouts and the durex tracting wealth from the company extracting wealth from shareholders there's a clear conflict of interest and this is what a lot of companies are doing apple is doing it by the hundreds of billions of dollars and other companies are buying back their own stock micro strategy under michael saylor said you know what we're not going to buy back our own stock we're going to put our cash on our balance sheet into bitcoin so he broke from the pack because he realized he doesn't want to be like i.b.m. he doesn't want to waste all of his cash on stock buybacks and see the stock drop and this is fortunately i like bailing them so. by buying their own stock again

they're trying to this is sinking boat i.p.m. so they're bailing out their bad company by putting the water putting it back on the balance sheet and it's not working and of course that's kind of mirroring what the fed is doing it's essentially buying back the stock of america and hollowing out rather than investing and it is buying all the old bad debts of these same companies like i.b.m. is putting it on to their balance sheet for no good like it's not going towards any manufacturing in the united states remember we're 10 months into this pandemic and we still we're still an even like us the fed is like a giant pawnshop you know people take things to the point they get cash for and they still come back and i'll buy it some day later you know and all these companies are going to the fed to buy their stock from them to get cash immediate cash to give themselves a huge spending spree and credit spree and executive bonus that by the time they go back to the pawn shop the values drop considerably and any time you have all of

your major corporations going to the pawn shop for cash that's a bad signal it's a bad sign because speaking of like going to the pawn shop and buying back your own stock and making no economic sense other than decline is this is an interesting tweet and then some data following it china to us west coast shipping is on fire container slots sell out risking holiday ship again no response yet for trans pacific container shipping demand frenzy so this is the shipping of goods from china to the west coast of america where we had $1200.00 stimulus checks we had $600.00 extra week on enhanced unemployment benefits 75 percent of americans were apparently making more money than they've ever had well the ships are 100 percent full the containers are 100 percent full you can't get a container built you can't pick up a ship from the spot market the whole container shipping cycle is at absolutely full. exclaimed jeremy nixon c.e.o.

of ocean network express the world's 6th largest container line so we're sending we're taking this money sending it to china they apparently are still willing to accept an exchange for all the work they do to make these products and send it to us but how do we get that to stay here how do you get some of it to stay in the united states if the whole you know that the u.s. corporations like i.b.m. are just hollowing out their company and so you have to go to china to get all your goods right so china is experiencing a v. shaped recovery you know kobe had like the media or hit planet earth boom and some areas of the earth you know that benefit because they that were not hit by the media or in some are it got hit by the media or right so china did not get hit by the covert media or we can go into the details about their response except or i mean i'm i'm just stoically you read remarking on the facts of the case i'm not making a judgment here and as a result they are ship and stuff to the west coast and

a record amount and of course the trade imbalance is going to get up wide open and this is the beginning of the china century yeah i mean all the data looks like that perhaps we could turn around who knows. a lot of this is set in motion by joe biden and the polls suggest he's going to win so i don't know like what he'll do to be able to stop it especially you know at this point in his career but some market watchers thought volumes and rates what relent in the wake of the china golden week holiday in early october it hasn't happened yet the trans-pacific market is still at its peak according to the fritos baltic daily index spot rates from china to the west coast were at $3847.00 per 40 foot equivalent unit f e u on friday of last week they've hovered around the same stratospheric level since the last week of september which is triple last year's rates so again you know it's . it's hard to read all of this data because there are so mets conflicting data and

that i think tends to happen as you know you know one ordered disintegrates and another is rising it's hard to tell what's going on i mean tripling the rates of 21000 at the same time you would think you know it's boom time in the economy or maybe it's just like we just have no manufacturing at all so everything must be shipped here now versus last year right well one you know historical data point to take a look i would be japan in the mid 1980 s. writes a panel is going to take over the world the u.s. is going to fall back and be the 2nd coming of the 2nd tier countries japan is going to rule the world then because of the internet was invented and proliferated it uniquely satisfied the entrepreneurial instincts of the united states and gave us amazon google apple all right and then the us took off again so that carried us

for 101520 years but now u.k. down over asian country they're in a position to to dominate in the u.s. though because the police have political no no social cohesion is the social cohesion risk is too great right they've got too much infighting too many sprouts going on i don't think there's going to be an internet this time to say that no member back in 20102011 we were car covering that social cohesion and x. that the economist magazine and come up with and they were talking about all the arab spring and certainly you know we've had here similar bizarre situations happening in the media space home go too much into them but here you know so shipping all or all the goods are coming this way nothing's going that way and domestically here's another interesting story kind of feeds into all this fighting back our own stock in the disintegration of what happens in the pandemic nobody is talking about it in the mainstream media but commercial mortgage backed securities traders say 90 to 100. 20 they've delinquencies on commercial real estate loans

surging to $30000000000.00 up from $4000000000.00 in june as pandemic lockdowns new work rules crush prices an estimated $40000000000.00 and see m.p.'s are in default hardest hit are bonds with exposures to hotels there's you know rent holiday all over the world then when these are going to have to disintegrate or go bankrupt at one point obviously it's going to be transferred for the fat to the fed's balance sheet because i don't see them actually letting the commercial the holders of the you know mostly in pension funds and things like that passive investors holding the c. and b. s. i don't think they're going to let them go bust so we're in that cycle that is a doom right well before the covert hit all countries around the world are trapped in a fear. game theory remember china and the us had a symbiotic relationship and china had all the manufacturing capacity and the jobs but the u.s. was the consumer and had great credit and could go into debt in these 2 were in this joyous downs but postcode it now it's

a breakdown and china is breaking away from the pack and it's clearly establishing itself as not needing the u.s. anymore in terms of its ambitions for global economic dominance and the u.s. with all of these bad debts now in the commercial real estate residential real estate that means that the central bank is going to have to expand their balance sheet by nother let's call it 15 to 20 trillion. and so that will at some point cause confidence in the u.s. dollar to about 3 then you have hyperinflation then you have a currency collapse and then and all that gold that china has and other countries will be a huge factor for the i.m.f. this week to point out of course that they're looking for bretton woods 2 so well speaking of up to we have. part 2 coming up right after the break so don't go away

. so what we've got to do is identify the threats that we have it's crazy confronted he shouldn't let it be an arms race in his own spearing dramatic development the only really i'm going to resist i don't see how that strategy will be successful very critical time time to sit down and talk. and sort of amazing country with so many friends in russia and i'm very excited to be here. i love that idea

i think i can do that. different nice to make a lot of money with the same millions and hundreds of me. here is the nice what. a great wall and nobody builds a lot better than me believe and i'll build a very inexpensive like a great great wall. 'd just in case you're worried about who's going to pay for it mexico will pay for. it we'll see what happens who knows i always say who knows what we'll see on the field it will be success. the world is driven by a dream shaped by one person. no

dares thinks. we dare to ask. welcome back to the kaiser report imax keyser time now to go to andy had struck he's a wealth manager a hard money into this yes and he's the author of the blazingly brilliant book why buy bitcoin n.d. welcome to the kaiser report thanks for having me max great to be on with it already had a chance to be on with you on a call on another podcast recently and you know you're in the wealth management business even talking to people about bitcoin for a while many heirs have got

a book out their year experiencing what people like michael saylor who i is just now experiencing is talking to other people about this asset class and here are a pretty well versed in it and let me ask firstly about what's happening now in this in this market you know back in 2017 we saw the foam 0 fer of missing out from the retail sector really the mom and pops out the small the fringe players the internet crazy people they drove it up to 20000 we had a big correction and now looks like we're in the midst of what you might call corporate fear of missing out corporate famo do you agree where is this going andy yeah i agree with you max the corporate photodynamic caught a lot of people by surprise myself you know included to be honest i mean michael saylor came right over the top as you mentioned you know i did now system is set up

and how he 1st purchase well 1st bought because then purchased shares to get people that weren't interested only because it's shareholder base and then purchase more because it of course we saw jack and the crew at square oh through so yeah for sure the clock is ticking me on the starting gun has been fired by a sailor and you have to believe there will be others and so of course we as you talk about it in the past there's all these various. sort of an independent option with you know the retail which comes and goes and waits which makes you hard liners you know there's the hedge fund managers and family offices and there's the corporates and eventually you know governments and they're all on their own time scales but i definitely think that the starting gun has been fired for the corporates and i do expect that more companies are going to buy that coin and put it on the balance sheet for sure bitcoin is full of ironies is full of paradox paradoxes i guess is the plural of paradox and you know in this case back going

back 220-1121 i stacy and i are 1st getting into bitcoin people were really looking at it as for payments and thinking about in terms of competing with pay pal and bit pay was one of the very 1st companies out there and there's going to be the pay pal of bitcoin but here we are in 2020 and we find out actually that corporations not think about this in terms of payments they're thinking about it in terms of assets on the balance sheet as a way of a store of value and that's like a complete twist to the narrative that nobody saw it coming really and now we're in this period as michael saylor of micro strategy who put 425000000000 of the company's cash into pickling race they pointed out on another podcast there are about 10000 billionaires in the world which include individuals and corporations and they're all sitting on this i see calls at the melting ice cube that has cash in a world where every central bank in the world has said we're trying to deceive we're

trying to inflate away the value of that cast by a least 2 percent here of course if you look at the numbers it's a lot higher than that and the market for this is staggering because a $2210000000000.00 asset versus literally $100.00 trillion dollars available that try to find its way in the big coin you're a wealth manager word is that take us yeah and this is where i try to with my clients. max to just simplify the story and right now that's not difficult to do you mentioned that earlier in its evolution or its adoption becoming was you know thought to be useful for payments and you know in my book i lay out several sort of cite cases or reasons to a big point but far and away the clear leader in the year 2020 when as you say you know all the all the banks said the banks are printing tons of money and inflation is coming the clear narrative is digital gold and it's that simple and

that's what i tell my clients i mean i talk about hard money assets but you know gold is the leader there because we will take share by the way i happen to think that gold as an investment is probably going to do well in the next few years and that's good news for bitcoin because as you point out as these corporate treasurers and these c.e.o.'s figure out that the purchasing power of the dollars and other currencies they have on their balance sheets is getting frittered away is getting inflated away they're going to want to own the hard money asset and bitcoin is the hardest money that i've ever seen given a huge money management firm like fidelity has come out a statement saying oh you know people should put up the 5 percent of their portfolio and typically it came out they matter they're up there in the bulge brackets you know their top i think it's got to be a trillion or more fidelity there's a few it's not really it's there's assets under management and that's well over a trillion and then there's the assets that custody including retirement plans

right for one k. plans that's something like 6 or 7 trillion i want to say it's huge numbers palter jones of course i'm asking you these money managing questions because that's we share that interest for sure having it myself a background in it so i see somebody like paul tudor jones say is you know back from the 1980 s. a was the golden child and call that 987 traffic cetera he calls it the fat. the source of the race he's a do diligent guy you know the headphones come in that's another multi-trillion dollar market so thought coming up in fact the supply of big coin coming off the miners on a daily basis 100 percent is gobbled up by these huge buyers more than 100 percent there's actually we're developing a situation where there could be a shortage of pick coin in fact for the retail crowd because potentially the big players could buy it directly off miners for

a premium is that do you think that's a possibility or retail the retail market for pick like a dry up you just can't find it just can't find him for example i can't i can't buy a fractional piece of a medical yani you know they pay $460000000.00 apiece i've got to pony up that money or not i can't buy i can't rip off a piece for a few 1000000 can i is the retail market for that's going to dry up potentially but of course you know it's that it's a 4 year having cycle and it's just this mechanistic you know brutally simple system whereby the issuance gets cut and so far every having cycle you know you get you get this fica and then there's some period of some months where it kind of hangs out and then at some point yes that demand starts to outweigh the supply and you get the move now as to your question about you know is it too late for retail basically on the one hand of course this is the one asset in history at least in

modern history that i'm aware of where retail got the 1st shot at it right where where institutional money was like. but you know it's to still money can take time but eventually they figure it out so yeah i agree with you there's going to be institutional buying pressure coming in what that means for praise i'm obviously very bullish and i do think that retail will continue in the next in the next bull market it will just be. the demand that was already there will be additional incremental in my opinion when we you know hit an all time high you know the smart retail folks are stacking their stats right now and they'll continue and then yes as the as the corporates and the other you know it's judicial players come in though just be that much more pressure so it's not too late it's never too late would be quite right because you put it on next year tell people abided a dollar or they too late it $10.00 or they did it waited $100.00 i don't think so all right i'm going to read to you 9 words and get your reaction here we go the

i.m.f. is calling for a new bretton woods a tweet about this i think this is one of the most ridiculous statements i've ever ever heard in my life and i'll tell you why. bretton woods which occurred in basically the mid 1940 s. after it was clear that the allies and it's simply the united states had won world war 2 was a point in time where there was there had been a war there had been a clear victor and it was about constructing a new system in which the victor was dominance and you know most of the world was falling in line with the developed world ok that system is nothing like what we had today right back then the u.s. was i don't know 40 percent you know close to half of world g.d.p. . europe was in ruins essentially that looks nothing like the world we have today oh and then the last piece with the debt levels right debt as

a percent of g.d.p. both in the us and globally was actually far lower even right after the war right we we know that we know that governments go into debt in order to conduct war in order to finance war and yet even after world war 2 the debt to g.d.p. ratios were significantly lower then they are today so yeah i think today's world 'd does not look you know hardly at all like what the bretton world the bretton woods world did at that time. it might look you know what could actually happen among countries could we see something like apply as accord maybe my expectation is it's is it's basically just you know financial anarky currency in monetary anarchy everybody's just going to keep printing and i think this notion of a bretton woods you know a coord everyone comes to the table and implement some new monetary system is a complete fantasy and it's a harsh oh you know hard to harm movie that people poor people are getting x.

to bath or they're being fed into a wood chipper and then some lucky folks find an escape hatch so here you have a central banks they realize they were out of reset like a present woods you know it's too much debt we got to go back to the table because we're all going to perish. and meanwhile the smart money saying well you know actually we're just going to buy a bit coin because it's completely outside of your control it's on confiscated all it's the hardest money ever it's better than golf and i mean when you hear the bank of england come out with a statement saying that we're going to come out with the big gold because people don't want they want something backed by by the government right there so clueless it's shocking i guess that's to the point you were talking about earlier that it's still very early on because considering it's at 111-2128 half 1000 if it gets power with gold or talk and 400000 above right that's exactly right it's such it's it's

among the clearest you know investment theses that i've ever seen in my career as you mentioned you know i started my career wall street i worked for hedge fund it worked for private equity fund you know before i did wealth management and yeah it's the upside is so big and all big point has to do in the next few years is take significant share from bolt as you described i mean it it will be great if you know it takes your feet out it will be great if people use it as the swiss bank account in ocket it will be great if there were there are all these new use cases that are built on top of it you know that's all the sort of icing on the cake and that's the longer term story but for the next few years yeah taking market share from gold that's all we need ok well fantastic and it hurts from thanks for thanks for being on the cars report pleasure is mine max thanks for having me all right and that's going to do it for this edition of the kaiser apart with me max kaiser stay here but i want to thank our guest andy edstrom who is the author of love why

buy pickle wine it's a darn good book. catch us on social media if you can until next time. so what we've got to do is identify the threats that we have it's crazy. let it be an arms race. spearing dramatic development only. exists i don't see how that strategy will be successful. to sit down and talk. congo. the maternity town the slums go in and you may never get out so it's all good he was good.

by teenage gang rules here. you know one of you to move then you're letting my goat you know you were through with it but. the navy will. kill. you. minus a merry ground 0 it. was. but now it was in for the yeah well i knew you. and melanie when not when. you were you know mccain who. i see. in the 1920 s. and thirty's several 100 african-americans moved to the soviet union and many of

their descendants still live in russia. or going at the coast because you know no rush for us though up most of us have got worse akong things on your way. back home but i can merican suffered from racism and a complete lack of prospects. is that lump us about the real. one by elsa store on her by doing. so they decided to leave everything behind and start a new life in a country about which they knew almost nothing at all some of. who were through during the night. around great crowds. moulay a golf you know going to call. you and now almost a 100 years. history is repeating itself my great grandfather george time i went to russia. probable worst time to go anywhere why not me.

when i come here. for headline stories this hour from warning citizens in muslim countries to be vigilant. defended the ride to show controversial cartoons of the prophet. felt across europe those restrictions beginning to. italians albion ignoring an overnight curfew to vent their anger on the street. as you can see italy is rebelling this government has decided to suppress the italian people to starve them to death. while donald trump accuses rival joe biden of making millions of alleged deals we look at nepotism claims involving both of us don't.