i think what this really means is a 20 percent increase in prices. thomas will be here with the latest in 30 minutes . i'm max kaiser this is the kaiser report wow. you know what margin debt is racing to new all time highs what's going on here stays right

max remember those days when we have spoken often and that was when we had the bond vigilantes on the gold vigilantes and what they would do is they would battle the government about you know how much the government could spend and then the bond and gold vigilantes disappeared but they've come back as leverage hits vigilantes they're front running all of the disasters that they themselves create as a way to make money it's an easier way to make money than trying to force the government to behave you force the government to go crazy right time to worry about stock market leverage again another what the heck signed the zoo has gone nuts margin debt the amount of money that individuals and institutions borrow against their stock holdings spiked by $56000000000.00 in december after having already spiked by $63000000000.00 in november by far the 2 largest month month increases on record to $778000000000.00 according to finra which regulates brokers and exchanges

since march this measure of margin debt surged by nearly $300000000000.00 of rice 62 percent margin debt and margin requirements of course are something that you have spoken about often as a way for the fed to actually if they really wanted to regulate bankers they could raise margin rates right well going back to the crash of 29 of course that was caused by margin right so people were allowed to put down 10 percent and buy stocks. and so when the 1929 crash happened it started slowly but it caused margin calls because yes more highly leveraged and then they couldn't come up with the cash to meet the margin call and you have a cascading effect in 1987 similarly i was working on wall street and margin requirements under what's called regulation teen what's where the outgrowth of the reforms of the securities act of 33 and $34.00 required 50 percent down

to buy a stock so that was part of the reformation that took place after the crash and but there are many ways using options which had become relatively new at that time to be creek create not only a 90 percent margin but you could you could effectively buy stocks for less than one percent right so when this crash started to happen in 1907 once again the cascading happened and you had it or if it crashed the dot com was similarly it was a highly leveraged situation based on initial public offerings that were manipulated in ways that caused this huge bubble and when the crash happened again a margin related cascading bolivia safin nightmare same thing in 2008 some prime crisis created this enormous leverage bubble once the started to come unglued

another cascade of margin calls remember there's a movie called margin call there is a famous scene in trading places when the duke brothers are faced with a margin call you know this is the dreaded moment i remember in 1907 after the crash the margin clerk the guy who brings you the margin call to the broker who didn't have to call the customer to get the money who's little tray that he rolled around the office was stacked up you couldn't see the guy who was so high that catastrophic days margin calls were so you're saying that no time in history. has there ever been more margin leveraged a market then right now and partly because of that cause and effect that relationship between the wall street banks and the fed and the treasury because they're because the actors on wall street know that they're reckless behavior is

going to force the fed and the treasury to print more to rescue the system so they're able they're basically front running the disaster that they've created you mention the dot com bubble there's the leverage there and the crash we know what happened then the fed had to cut rates all the way down then all the cutting to the rates down caused the subprime bubble that soared that this is the leverage then and then that crashed i know one of your friends who is a very very very multimillionaire had a margin call lost his house remember because like it's climbed so fast you know margin is and the stock excel or 8 or both directions up and down so it could drop way faster than anybody is expecting so as this points out this isn't dollar terms obviously the dollar has inflated away the value has inflated away during this time but is that all time high in dollar terms and it's accelerating rapidly once biden got in because they're expecting more money printing than would have happened other

under say had trump $1.00 so they're just front running the stimulus checks that will be coming through right so as an observer a multi decade observer and student of central banking and what you're saying here is that in the volcker years the paul volcker years back to the seventy's the role of the central bank was to quote take away the punchbowl when the party got to rockets right so they were interventionist to some degree they tried to the experience of the crash of 29 in the 1930 s. or uppermost in their mind and they were trying to mitigate the risk of to my. much margin then alan greenspan came into office and he rewrote the definition of the federal reserve bank and he said we're no longer going to try to stop these problems we could only mop it up after the fact and that was the mandate for greenspan bernanke janet yellen jay powell they they're just there to mop up the problems they're not there to try to stop the problems so you're saying is right

even a new era which is that wall street realizes that they're going to try to outrightly cause the problems it is whatever way they possibly can knowing that they will get bailed out immediately so this is taken a new twist of fraudulent margin related behavior in fact the reserve is complicit so exciting that they going from being responsible to irresponsible now and in 2021 they're actually causing the crashes they're causing the crashes yeah in a way so you know i don't know if it was like intentionally set out to create the system what happened is the bond vigilantes you know even though the fed is supposed to be independent i think they came under pressure from the government because the bond vigilantes prevented the government from basically doing u.b.i. and free healthcare and all the those things that they wanted for their voters right so the bond vigilantes on wall street prevented that so the fed abused them

they said don't ever do that again or we're going to lose our independence and they started buying up all that debt so it like destroyed the bond vigilantes then the gold atlantics came around and they did the same thing they abused them so what it had left was in encouragement for well if we can't fight them. if we can't force the government to act within its debt parameters. then where going to blow this thing apart like it's almost invited that behavior it was the game theory of this financial system of a fia financial system and courage this this was the inevitable end i guess karl marx kind of said that predicted the financialization would ultimately destroy the capitalist system and it does seem to be that way because there's profit in causing instability even if they're not thinking that like writing it down saying hey let's go cause instability they must understand like in the response keeps on paying them

off every time there's a crash or instability so it just invites sort of rewards that behavior so that it's a system those are the incentives of the system versus a big question which invites the opposite incentivizes the opposite right while they're motivated by their ideology and which now we've officially answered why what i predicted would happen the era of suicide banking right so these bankers and central bankers are committing financial suicide as part of their ideological dictates they're not doing it necessary to make money anymore they're doing it because they ascribe to. a doctrine of of of financial suicide banking and so i would obviously because it is looking at that that's why it's skyrocketing as it is because the bankers have gone beyond just being irresponsible they're actively trying to snuff out the system now well it's command and control right so you're trying to command and control and

know don't bond vigilantes don't point out the truth that we're recklessly printing debt don't do that because you know we need to keep faith in the system so like they they try to stop gap one disaster in the making and create a much bigger one that's happening everything is getting chased hired by speculators wall street points out who are totally indifferent to valuations because valuations used to matter remember warren buffet his metric that his most. important metric when looking at stock markets is if the stock market is more than 100 percent of g.d.p. of that economy it's in a bubble right now the day biden took office it was 190 percent so the valuations obviously bubble according to something that worked for warren buffett for 40 years now but that but it doesn't make sense anymore because he you know he was in a day in age when bob and bond vigilantes and gold vigilantes had power when there

was something like a link to some sort of value whether it was the economic productivity or gold standard but now we don't have any of that so you just have to play the play you have to play are you going to be one of the team that's rescued if you create enough debt and enough disaster you're going to be rescued if you're just go back to donuts with 3 $1000.00 in debt and 0 cash you're not going to be rescued so that's the it's just it's just a sick game essentially it's been game a fight too much money we saw this in greece. greece it was determined by this has been well documented goldman sachs to engineer the false inclusion of greece in the euro to begin with by creating false contracts so high debt yes yes then the troika which is e.c.b. european commission i.m.f. got together to systematically destroy the greek economy while simultaneously taking acro the fall swaps that paid off to a think more than half a trillion dollars in profit so they they killed

a country for profit but that's the thing that's the game theory i'm talking about the credit default swaps on the economy of greece say it's $100000000000.00 conny just for ease of it the credit default swaps the debt versus that 100000000000 and 100 trillion up here well they've got to rescue 100 trillion because that's going to crush everybody so that's why that's how that happens it's not just profit it's just. like. this system over which they they've created this frankenstein and there's it seems like there's no way out now again so you have the fed and you have the treasury the treasury janet yellen is now about to run and this is something that she proposed apparently in testimony to the senate who are questioning her you know getting ready to confirm her as treasury idea of taxing unrealized gains resurface foods as money printing and tense of 5 so all that money printing and all

the front running the parabolic front running of the stimulus checks coming to the people well you know it's caused stock markets to get 190 percent of g.d.p. so the treasury janet yellen looking at that and say well we could tax that of course that's going to evaporate as soon as she tries to let me ask you this will those who would be most impacted by having on realize gains tax the so-called wealth tax would they not be incentivized to do agree style collapse and profit from the credit default swaps but on america and we always said that once they were successful in destroying greece they would move on to other countries in europe and it would eventually get to the u.s. is that day now approach and we hear now i think it's cisco to be like a game of monopoly i told you i mean this is the overly game of fide and we're at the point where. you know it's me right and the game is over and there's no there's

no way to continue this this fraud right this the fraud of a of an entire system right so i think they're just going to have to i think that's why the institutions are buying bitcoin i think that they're going on to plan b. they are already like they know this they're front running at the edges like with all this margin debt. and their plan is an exit so i think in a way yes because i think that will end up destroying the dollar of this this will end up destroying the dollar because there's only so much debt you can keep on rolling up into you know future generations 50 year debts or bonds or 100 year event like eventually. it's really up to china whether or not they agree to keep on participating as the the the giver of goods to us like oh i be like warren buffet and put all your money into japan. all right we're going to take a break and when we come back much more coming your way.

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was under make no certainly no borders and just bought into nationalities. as americans we don't come with the we don't look like seeing the whole world needs to be. judged as coming every crisis swiss system to the moment. we can do better we should be. everyone is contributing each of our own way but we also know that this crisis will not go on forever. the challenges created with the response has been so many good people helping us. it makes us feel very proud that we are in it together.

welcome back to the kaiser report m.x. guys are time now to turn to ferric ahmed is the founder and c.e.o. of web design company our technologies as well as big coin association of pakistan for a welcome to the kaiser report thanks for having me all right pakistan is putting government funds into bitcoin mining is what we hear this made international headlines what do you think and what do you know about this. you know 1st of all pakistan is a huge country by population it's the 4th largest country in the wood and a lot of people here. the population it's young people and you know it's. most of the people what can it tech industries if you know who i think so mrs related to college she is in to i'll send the wood and when it's come to that comes

to a client and a top chain here in pakistan. and put that put a bad on it clancy is in 2018. and dad you know let the. government to shut down mine and so on. it klein industry in pakistan but if they can stop it it will keep you know adoptions in quezon people keep using this as a new technology and it's growing in the in the region. right we see this happening around the world countries different countries are coming in typically in different ways and at different rates and you've got an interesting. dichotomy going on here because there are governments that are trying to ban it and some countries are trying to embrace it but for a get same zajac what we're learning now is that it's impossible for any one

government to ban it and that includes even in the united states janet yellen made a comment recently that she's against big coin you have christine legarde over at the e.c.b. suggesting it needs to be regulated but. we're we're we're we're in a post financial regulatory era there's nothing they can do for it and so is this the growing consensus in pakistan that this is a runaway train that you need to get on. exactly you know pakistan it's the it's the largest country. with its population in the country so. you know try to protect people. when they have it because there was a lot of scam rate in the country a lot of people don't know about you know they have to have

a good education about the industry so. the best way bowman's you know what the and on the indian point to to protect the people but it's not work it's not what people keep moment moment entered into the industry there. and they want to get in and businesses are a lot of good people what can we have to go home and to to get the regulations in place so they can take businesses with us and this is a lot of good people in the in the komen actually also went to the government to make their regulations so that international in recess can come and we can have you know crypto exchanges in pakistan and also you know a business is to say then how do you pitch. your friends and family and associates in pakistan how do you pitch it to a town why should they get into we tell them it's

a new industry its citizens tell technology that's where it's moving on fastly and pakistan should do as well it's not a get quick wits came as a lot of people know that you know a lot of people think that it's some kind of a get rich quick scheme it's a scam or something like that but we don't we close them to send you to college c. and we did because. it's you know the banking networks that it's now. and the insulin issues system and everything it's. 'd you know it's better so. 'd that's what we tell them it will chew you know for the for the for the people to what end. quite in services to the out so would and technology and so that people can accept like it's a fuss payment network as well they can accept the payments from from anyone in the

wood digitally and kuwait into the kess that is the whole. ranks out of touch on that the remittances market it's a 24000000000 dollars last year and i would imagine that that would be a huge use case in pakistan because for remittances correct correct that's correct ah a lot of pakistan is working outside of what different countries and they send money to do household their family in pakistan and you know me as well my family members or what can a different countries they send us money and it takes a lot of you know some time and it was so close is high so if we have our infrastructure. and this network they can use and they can send money quickly and easily you know so it's a whisper. so tell us about the little bit about pakistan's monetary system in the

central bank the pakistani central bank what wanted to have a issued any any thoughts about big coins at all what is the monetary policy there as far as you know. with the monetary plus polisi is not its slike not different than other countries you know it's the pakistani who pay its back by us so they can actually print more. you know keep your are they have to ask to the united states and it's not like a back by the gould as a lot of people misconceptions and in the country so it when it comes to the this is just not it's ikhwan. actually it's not the band put on the olympic quine it's not i mean it's by the state and. they are restraint. people because

once it is and they have put a ban on this they went to the script spam court and they are at the bank in the country to shut down a trade trace it if you if you see any trade happening in the banking chat to the big consist it should be better right so the state bank has an opinion it's not a sound that governments opinion the prime minister of pakistan emraan khan as he said anything about this yes a lot of good people and they end at. they are and they were not you know promote the option of fake when and legalizing the industry. it's a coincidence pakistan and a lot of member was dad. working with decorum and he actually got. one of us to. the mining legalising in in the in the region and it's

working and you know they have made a lot of progress in the towns and the energy costs in fact us and you know a big kind mining is dependent something like maybe 8 and 90 percent of the cost is actually the energy cost can it get cheap energy in pakistan. exactly and as he is no relatively cheap you impacts them but there are some you know we don't have much and you see you know shutdowns is a normal thing because we have less and consumption is moved and we put this in producing less but the other factor is in the no other areas of pakistan we have some different opportunities to generate electricity by ourselves like businesses they can have a hypo true bines they can set up and it will be relatively cheaper than an as whale of a country so and i'd say it's not an issue it's you know it's investments coming in

and this is a company they want to question if they regulations and plays i think the industry with. phosphate right so the northern regions you find the hydro and things like this it's cheaper energy and so that's very fine a lot of mining i've heard reports that. pakistan is got a pretty significant percentage of the overall hatchery of big kohain globally and do you think they'll will get to a time when countries start to start thinking about regulating decline and start thinking about they need to get into the hash race they need to get as much big coin in mining as possible to compete in the 21st century do you think that will be a shift in the way governments think about decline and if we find in pakistan if the government and the state bank decide that wait a minute we've been looking at the soran we need to actually get as much big as possible all it's our it's our escape out of the us dollar gemini which is

something i think pakistan's been trying to do for decades do you think that moment of clarity will come soon for a definitely it's going to be you know it's going to be that that waste it's just starting right now and it's just you know in 'd issues. stages of getting and realizing that we need to have we need to go to this financial system because you know clearly we have very few people in the government that think. alike that but you know we as we you know see there are a lot of a lot of people that are understanding. that this is the future and we should 'd you know this way and go men would be way much you know how when where and when. they understand. the network and the collar off this new technology and that's definitely not going to be the case and i would thank our we should get

into the. war too to capture as match you know quite as a one so definite yes all right for a command of the decline association of pakistan thanks for being on kaiser report thank you thank you have a great day and that's going to do it for this edition of kaiser report with me max kaiser and stays there but i want to thank our guest for a come out of the big clown association of pakistan until next time by all. the world is driven by shaped.

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epidemic it's corporate office. in the headlines this hour the russian and u.s. presidents holding their 1st phone conversations since joe biden are duration covering a raft of topics from the weapons reduction to the current demick. rather proves that russia's vaccine and now plans a joint production in an exclusive interview with r.t. the country's foreign minister tells us why iran is backing split mcvie. separately india says it isn't nearly ready to approve the russian vaccine and with it the countries of moscow envoys saying he has all.