a bit clients going to 10 x and x 5 years. yeah, yeah, yeah. jamie diamond was critical, a big claim and starting when it was a $200.00 a coin. it's now around $45000.00 coin. it's adding as he points out 10 x from here. so he's looking for up to a point or 52500008 coin. and i've been telling you for years i had this recurring dream about jamie diamond. he would be coming toward me and a deserted match and in the hamptons, and for years he just got closer and closer. and then finally, this week he was in view. he was there on the floor weeping and sobbing, and begging forgiveness. and like a good big corner i forgive jamie and now he's one of us. he's now a bit coin or, and welcome. your daughter was here a lot sooner. she's obviously got her mother's brains. but nevertheless, europe,

you're welcome. i'm showing you this is max kaiser laser eyes at jamie diamond. of course, you know, i said the house that money built is crumbling and we see that all over the place. we've covered that in the united kingdom, the gas gasoline, the petrol prices, and all prices are rising across the u. k. across europe, across america. and we're starting to see shortages, a lot of it the, the shortages of goods and services are caused by the shortage of workers who don't want to work anymore. but often who haven't been able to be trained because of everything being locked down for nearly 2 years now we're, we're heading to the 2nd year anyway. one thing i could say about why, in this sort of situation, we might see jamie diamond going towards bitcoin, is that he sees the house of money crumbling right. and you could see that the fed speak, you know, i have fed speak this option skating all their money printing and the covering up

of the crimes. well, it's starting to meet clubs speak. so here's one thing. that's why jamie diamond might want some unconscious. scalable wealth is the mood, the mindset. we're always talking about, the mindset, the inflationary mindset. well, part of that is this sort of headline berlin votes to target corporate landlords, socialize, 250000 apartments. this was a non binding vote, but it shows you the mood of the people about 60 percent of berlin voted to let basically seize 250000 apartments from big corporate landlords. those who owned more than 3000 apartments, they voted it non binding, but that they wanted to see these properties and socialize them, give them to the people. right. as you mentioned, big one is uncommon, scalable imagination. marie antoinette, bitcoin. she may have not lost her head,

and that's what jamie diamond is thinking about right now. but the people in berlin are facing this huge confiscation of property. property can be confiscated, gold can be confiscated, silver can be confiscated, all the money at your bank can be confiscated. all these things have been r and will be confiscated. there's only one asset guaranteed to increase purchasing power over time. that's unconscious. gay, the ball and that's bitcoin and it's great for people who would just want to get some wealth for the 1st time in their lives, like the folks in el salvador who are putting away 1020 bucks at a at a time. this is the 1st time they've had on campus cannibal hard money, or you're jamie diamond and you're trying to, you know, hightail it out of dodge before the pitchforks and get jane, show up either one. you're both welcome to join the big coin revolution, right? so, you know where we saw an exodus of bitcoin and big queen miners was from china. and now part of it was having to do with him shutting down minors because they said

about electricity and electricity costs. well here's i have mine which does not bode well for the money printers in the west because part of what we've been doing and we've been living off of debt derivatives, piled on top of that debt piles on top of our currency rails. and more and more fed speak more and more fed printing. now the treasury is printing, the government is printing everybody's printing. so everybody's chasing fewer the same number of goods. but the goods are now shrinking in supply to because of energy prices, suppliers in china for apple, tesla intel, in video, qualcomm and x p infinity and a s e forced to halt production amid energy crackdown. the everything shortage keeps promising to keep getting worse amid china, as many crackdowns is

a crack down on energy consumption, motivated by a slew of reasons, including most pressingly spiking prices for coal and natural gas. particularly liquefied natural gas. china is the 2nd largest importer of l. n g behind japan, as europe and asia compete for the supply. the supply of l. 6 a n g for november delivery to japan and korea has exploded to $27.45 per 1000000 british thermal units on the 9 backs up from a $6.00 range a year ago. and here's a chart from the c m e group. here's a year ago and here is now, and that's part of what's driving, what's happening in europe as well, is because right now europe ian prices for l n g are about $1516.00, and it's probably more by the time this air is, you know, it goes up very hourly, so it all the l n g, you know,

it's going to asia and sad because they're paying over $27.00 for their natural gas . they're so, you know, europe had decided to go like on the open market, free, free market, free competition. and obviously it's a lot more there. remember, in the united states with all the fracking ex, excess natural gas, we were down to like a dollar or something. so that's show you how much more they're paying in asia. right? so the supply lines are breaking down and costs are going, the price of energy is going up. you know, this is, has something to do, say, it's what's called inertia. right? so inertia, the law of inertia, things that arrest that stop tend to stay rest at a stop. things in motion tend to be in march and continue in motion. and when you come to a dead stop, like we had in cove, it the energy required to get a moving again, is exponentially greater than the energy required before just to keep it rolling and ticking over. yes. so you have the benefit for decades now of these major

economy is able to simply print money to keep the wheels or what was a lot of mal investment going even though that lot of these projects, you know, the go cities in china or the white elephant projects to the united states, they were papered over with, with money printing. and then they hit that on movable object called cove. it in 2020 and the believe at the time would be a while we're going to lock everything down and then when it's safe, we're going to open things up and there's kind of in people's minds. this idea that the energy required to get it started again won't be particularly g, a greater than the energy was required to keep it going before the stoppage. but that's completely false. the energy required to get the systems going again, is exponentially greater than the energy required to keep them going. in many cases, the supply lines are going to have to be rebuilt from scratch. absolutely. i mean,

look at the airline industry to get or to look at the trucking industry as it relates to energy. it takes 6 months to train somebody to drive one of those trucks . so if you lose all those drivers for various reasons, due to money printing, you can simply turn the switch and get drivers back on the have a 6 month window that you absolutely have to respect that's, that's going to cause problem just like you can't make 12 year old scotch in anything less than 12 years. that's one of the fact that's but that's a truism and 12 year scotch business. if you have drivers that require 6 months of training before they can drive a gas rig, you can, you know, that's what, that's what it requires. so if you can maybe pull the plug on it now to start it up again, they're finding that if they don't have the energy, it's not a all bought at any price. and what's happening to the price is going up. and by the way, all the money they print that is still flashing around and that's causing inflation

. and so systemically speaking, you know, this is the gym records moment that he spoke about. you know, that that's now flag on the mountain side that starts the avalanche. you know, he's a systems analyst jim records, he's written many books, look them up and i think this is, this is the avalanche. this could be the avalanche and you know, it is the. 4 the house of that money built is crumbling. and it's interesting that you know, if you look at it, the globalized economy built on top of geo politics, nat geo politics base around mutually assured destruction. that's how it keeps it. a consensus model on the politic stage is like not of mutual cooperation, but mutual destruction we have for kill each other. we're on top of this, that geo politics who built this economy that we didn't even realize was mutually assured, destruction happening. that was one piece goes on, the whole thing falls apart. i mean,

it's kind of tied to what warren buffett said about the, the weapons of mass, financial destruction, better, you know, is the spaghetti tying all of the global i system together. and now we're seeing that because of coven and the supply chain disruptions and the disruptions to the education system, not only for children and young people, but also for universities. and for, you know, that sort of schools and training programs that teach the plumbers the, you know, the people who maintain the electric grid or the people who maintain the supply grid, the logistics grid. and those new people are coming online because they haven't been trained for the last year and a half going a, we're nearing 2 years now. you know, what are you going to do? some people say of us go to india, right? well, india, massive fleet of coal plants are running dangerously low and stockpiles, which may, for some asian to buy expensive shipments of the fuel or else risk blackout. they may have to buy expensive shipments of the fuel as we just covered,

china is also out there trying to find expensive shipments and japan. so everybody's re, thing to get some of these. you know, there's panic buying on the nation state level. and the next panic buying will be a big point right. while the incentives and the traditional economy are not well organized because economics is a social science and not a hard science, like physics or chemistry, but big coin is the hard science of money. it is the 1st time you algorithmic, mathematically christine, and perfect money. that's a 1st time in history, and that's why all of this cast sloshing around the system and there's hundreds of trillions of dollars. it's going to all find a way to big coin. and that's how you get to well over $10000000.00 a big point. we're going to take a break and when we come back, much more coming your way the me, ah, ah,

the when our shows seem wrong, when all just don't. i mean you? yes to see out disdain. because the after an engagement equals the trail. when so many find themselves will depart, we choose to look so common ground in live in a try now with so many inputs on a daily basis that are completely related to reality. so think about how in social media filters and they basically present themselves very unrealistic way. and so we come to a fomo, there is and be involved more than that. it's about the sort of envious or

something that may not exist. and it is also really tied to the fact that is humans . we want to be part of the crowd. ah, the latest one, most of the, most of the location of the unit 731 was a unique organization in the history of the world. what they were trying to do was to simply do nothing short and build the most powerful and most deadly biological weapons program that the world had ever known. real to production. but it will show up enough keel to the new new

model to new martha. this is ms. nunez warner from new and i got the sale on monday. i wish to know about julie, who i know he didn't more or less than a g. i had a little cold weather and all buddy you nice to do want to on this. she my new on a on all. i isn't all the you know put them out. going to give us the me. welcome back to the kaiser report. i'm max guys. are time at a turn to rick ackerman, of rick picks dot com. rick,

welcome back. always a pleasure. max. thanks for inviting me on. well, you've got some fascinating things you've been writing about on your blog, but 1st i wanted to ask you a couple of things about some current events, every grand over there in china. the 2nd largest property developer in china is melting down. the big debate is whether or not this is china's quote lehman moment . what do you think? well, may be sort of dropped out of the news. and in my car commentary out the other night, i had a picture of a soon on me and we know that before the wave actually hits the tide recedes. and i think we're in that receding tide of a little bit of quietness on the news front. but i think the problem is still very much there was i recall after the 2008 global financial crisis was financial pundents were saying is that the world over cover because of china's ability to expand their balance sheet and be the buyer of last resort. so they carry the ball

for 10 or 12 years, but using the same tricks that were used in america and wall street to create a synthetic environment of activity that was not really real. so basically that they just make the same mistake all over again. no, i think the, you know, china has become, if anything more unpredictable because there, it seems like they're finally doing on his business. you know, they've, the centrally denied some of the, their own bubble stocks access to us capital markets. and in the case of ever grand, there's this appearance of wanting to just let it happen to let it play out. and the bail out has this one possible feature where essentially all the all sure investors get and in case, you know, ever grand could be about to be deflated to 0. and a lot of people who are holding collateral,

that relates to evergreen's portfolio could be in trouble. so, so, but china at last seems to be playing honest, they're doing honest business. and it's, it's a real curiosity, but i had a commentary out a couple weeks ago about how china is going to teach us how to, how to do capitalism the right way. right. well, at around the time of the turn of the previous century, we had something similar in the united states with teddy roosevelt who was called the trust buster. anyone after the robber barons who had become so big that they were influencing government to it, to the extent that folks found unacceptable. so maybe president g is the teddy roosevelt of the 21st century. rick could be, you know, he's, he's gone as far as restricting access to the internet to gamers, essentially upgrading his pool of human capital rather than letting him waste away

on weekends stuck to their video monitors, playing video games. so this is something that never fly in the u. s. biden said, well, you know, we want our, we don't want to kids just getting totally immersed in play station. it all, all hell would break loose. but you know, china just keeps doing the right thing. let's go back to what this meltdown of ever grand might mean globally, you know, we have the contagion in 2008, when layman brothers blew up, and bear stearns blew up. is wall street exposed to this? well, for sure. and we certainly have the experience of the 20089 to symbol the rate pieces spin wise to make people think everything will be all right. but nobody really knows how it's going to play out. they pad, quote unquote, responsible statements put out there that the exposure of some of the american biggies is not that great compared to their total assets. but,

but you really don't know how the dots connect up there, such huge leveraging in the system. virtually any financial asset you or you could own, has been hot 20 or 30 or 50 times over. so even if it seems like they, they are keeping ever grand under control. and even if they succeed, we still know that something much smaller than ever green can ever grand could be the, the catalyst for a big event. right, this brings us to something even writing about on your website. and that's what caught our i hear you ask regarding the feds growing reverse repo facility quote, is this a dry run for the feds rapidly approaching a new invent the phrase here? hyper, i propagated treasury moment. alrighty. so i guess before we talk about the hyper, i propagated treasury mom and you've got to just do a 32nd recap to the audience about what a reverse re power is. well, you have

a market that makes it possible. it's of the market itself and financial derivatives is expanded through repose and swaps. it's basically a way of, let's say, spreading risk over a wider, wider band of investors. and each one has its own needs as far as what they're looking for and a yield curve. and the market in swaps and repos, allow some flexibility in that way. let me mention that the, the latest commentary was written by a guest, a fellow named sean brown, who's a san francisco friend of mine from the hedge fund world. and what he's saying, and we've seen this in the markets, the supposedly blueish blue chip collateral, you can hold as us treasury's, but there is a shortage of them, really. and it's one reason why anybody betting that some ramp and inflation is going to push bon prices down yields up. it's not happening because there's really

a lot of demand for this collateral. but what the commentary says is that when the collateral was actually needed to get through some crisis, a lot of the holders of collateral are going to find out that they only own a very small fractional piece of it. and even that they won't be able to get their hands on. right. ok, so to be claire shawn brown on your side was making these points and it's really opening up an interesting line of query. you know, we've been talking about this for quite some time. the problems of re i publication, you know, in the united kingdom for example, they have incident re, high publication. there's no limit to how much you can re, hi, papa gated lend data security. and then re landed, landed over again as you say, somebody securities every month, hundreds of times, the same security. so i guess in the united states now, as is so often the case, anything that's happening in any other jurisdiction can be piggybacked by the us

and have the same exposure here through the derivatives market, right? because that's the channel through which all these markets communicate with each other regardless of jurisdiction. so it's always about whatever jurisdiction has the weakest protections for the investors. that's the jurisdiction that ultimately is running the global market. and right now that jurisdiction would be the united kingdom. so you much, you mentioned london and you know, after the collapse of 2007 and $8.00, a lot of that re high publication moved to the london markets, which were less regulated. you know, the u. s. markets, particularly leveraging out of real estate, came under such close scrutiny that london seemed to be the ideal place, especially for high pasta kading the supposedly idle balances had sat and a lot of broker accounts. yeah, exactly. and we also see this evidence and what's called mark the model

instead of mark the market. so at the end of the day, brokers they're supposed to kind of give a glimpse of what their books are and where the assets are, where the liabilities are. but they don't actually use straight up accounting, they use a model, they'll say, well, the securities are worth x, y, and z, depending on a model that we have not the actual valuation in terms of what somebody might buy for this stuff. so this hyper i propagated treasury analysis or theory or by shawn brown. so it's not enough to say that these markets have 0 collateral. what we're saying is that the markets have almost infinite negative collateral. if that even can you get into that. if that makes sense, well, you know, every time you use the word model, it's kind of using it tongue and cheek. we all do because we know these models really are designed by crackpots with no real understanding of the markets and whatever. you know, however many segments they want to send,

send the tails out. there's always that, that, that immense tail risk that no one's calculated even in some of the stress tests that they do with the bags. so, you know, we're, we, and it's also possible say nobody really understands these markets. everybody has, let's say, a knish understanding of some feature of it. let's say you could have an expert at citibank, who knows how to take the bolivian reverse floaters and turn them in to, you know, billions and hundreds of billions of dollars worth of negotiable instruments. a digital instruments. but even that person doesn't really know how all the things connect up. and again, as i mentioned earlier, and as we all know, the systemic risk is there relative to some very small things that could happen. we're kind of looking, never gran, but the system is so intrinsically unstable, pulled by forces, not the least of which is the fed mandate to keep,

to inflate or die that nobody knows really how it's going to settle out, or what could be the triggering event. all right, so we know that derivatives are printed in the hundreds of trillions. the total derivative markets are in the multi quadrillion. and i look at something like us tax receipts collected by the i r s last year, approximately 3 and a half trillion. that's literally not even 10 minutes worth of derivatives trading in the globe. so why did people pay faxes? you can simply for what you can spend 3 minutes press a button and cover that cash. why? the people pay taxes? i b s myself the same question. you know, if they really wanted to stimulate why not just have a taxed more tory him for the year, 2022 or $23.00 because the sums that are involved, the actual taxes collected are much, much less than is being played with in, in kind of digital hypothetical way in

a big picture. so i guess the reason for that is because the taxes pay for real things. for one, medicare and social security, everybody gets the checks and i've always use as, as an example of why when a big one hits the fed will not be able to re inflate the system. because so much of it will be imploding systems where real checks go out to millions and millions of, let's say state pension, pension recipients, and people like that, that takes real money, and that's why we still have taxes. right. and the answer to is that bankers get paid on gross not making profits, gross quantity of debts and derivative created. it's like the hollywood model. you get paid on the size of the budget. you get paid on the movie makes money or not. so right, budgets are huge, so if you're a bank and you can create a half a quad join and derivatives, you get

a percentage of that happening. trillion doesn't make any sense if they make money or if they're even economically viable. but that's how you get paid, so the incentivize just trade more of them. right, right. right. and something similar is happened in the market themselves. you know, the, the people who regulate them, i guess, see the, the realm that they regulate as they're, that's called a fif them in the larger it is, the more trading volume you, you have, the more responsibility they can impute to themselves. right? you right, this is fast. we're going to have to carry it over to a part to. thanks to bring our cars report. thank you very much for inviting me your max. and i was going to do it for this edition of class or part with me, max kaiser and stacy herbert want to thank i guess, rick ackerman of rex pix. and so next time via the me

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