ah, with all of shape, that's what we're pretty spells out. and that's how some in paris that come to view base, a per suburb is up in arms over the construction of a wall designed in theory to keep drug addicts out saying it is in humane and in practice only makes matters worse than any military chiefs saw the pandemic as a chance to success propaganda on citizens, according to a troubling army report. and us senators roast facebook after leaks, internal research suggests the company's instagram platform could harm childrens wellbeing to look at your headlines for this hour. my colleague andy farmer will be

here in about an hour's time with a full and virtual continuously with the international ah hi, i'm max kaiser. this is the kaiser report. ladies and gentlemen, we got a stacy? yes, maxwell, you know, in the last episode we were talking about fashion and the house that fear built is crumbling the house of fear money. that is. and you can tell that in what max finally convinced jamie diamond here big point. price could 10 x and the next 5 years says jamie diamond ceo of j. p. morgan chase, of course you and i have covered him for years here, even before bitcoin,

about the shenanigans going on at. if you can call it that shenanigans will say a politely, you know, at cheap you morgan. but he was dissing bitcoin in 2013. 201420. 15. 20. 16. 20. 17. 2018. 20. 19. 20. 20. and now in 2021, as you predicted, he capitulated and he's saying a big one is going to set x in the next 5 years. yep. 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 245-250-0008 coin. and i've been telling you for years i had this recurring dream about jamie diamond. he would be coming toward me on a deserted mansion 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 corner. and the welcome. your daughter was here a lot sooner. she's obviously got her mother's brains. but nevertheless, you're, 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 fee up 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 also 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 viet money crumbling. right. and you could see that the fed speak, you know, how you have fed speak this office 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 why jamie diamond might want some on confiscated bal 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 not binding, but that they wanted to see these properties and socialize them, give them to the people. right. as you mentioned, bitcoin is unconscious cannibal. imagine if marie antoinette had bitcoin, she may have not lost her head, and that's what jamie diamond's 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 guarantee to increase purchasing power over time that's on confiscated ball. and that's bitcoin. and it's great for people who would just wanna 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 your

jamie diamond and you're trying to, you know, high tail it out, a dodge before the pitchforks and guillotine 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 coin, minors was from china and out part of it was having to do with m shutting down minors because they said about electricity and electricity costs. well, here's the headline, 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, piled on top of our fia currency, rails. and more and more fed speak more and more fed printing. now the treasury is printing, the government is printing. you know, 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, invidia, qualcomm, an x p infinity and a s e forced to halt production amid energy cracked down. the everything shortage keeps promising to keep getting worse. amid china's 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 ellen g behind japan as europe and asia compete for the supply. the supply of l. 5 a n g for november delivery to japan and korea has exploded to $27.45 per 1000000 british thermal units on the 9 max up from a $6.00 range a year ago. and here's a chart from the sammy 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 european prices for l n g are about $1516.00, and as probably more by the time this air is, you know, it goes up very hourly. so it all the l n g, you know, is going to asia and said 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. and remember in the united states with all the fracking ex, ex us natural gas, we were down to like a dollar or something. so that show you how much more they're paying in asia. right, so supply lines of breaking down and costs are going up. price of energy is going up. you know, this is something to do say it's, that's called inertia. right? so inertia, the law of inertia, things that arrest at a stop tend to stay rest at

a stop. things in motion tend to be in motion, continue in motion, and when you come to a dead stop, like we had in cove, it the energy required to get 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 economies able to simply print money to keep the wheels of what was a lot of mal investment going even though the lot of these projects, you know, the go cities in china or the white elephant projects in the united states they, they were papered over with, with money printing. and then they hit that unmovable object called cove. it in 2020. and the belief at the time would be a while. we're gonna lock everything down and then when it's safe, we're gonna 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 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. 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 act. that's that that's a truism in the 12 year scotch business. if you have drivers that require 6 months

of training before they can drive a gas reg, you can, you know, that's what, that's what it requires. so if you cut, if you 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 available at any price and what's happening to the price, it's going up. and by the way, all the money they printed is still sloshing 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 snowflake on the mountain side that starts the avalanche. you know, he's a systems analyst, jim records, even many books look them up. and i think this is, this is the avalanche. this could be the avalanche and, and you know, it is the, the. 4 the house of that theat 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 is based around mutually assured destruction. that's how it keeps it. a consensus model on

the politic stage. it is like not of mutual cooperation, but mutual destruction. we have full kill each other. we're on top of this, that geo politics. you built this economy that we didn't even realize was mutually assured, destruction happening. that one piece goes on, the whole thing falls apart. i mean, is 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 this global i system together. and now we're seeing that because of cove it 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, this 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 6th grade. those new people are coming a line because they haven't been trained for last year and a half going a,

we're nearing 2 years now. you know, what are you going to do? some people say, let's go to india, right? well, india is massive fleet of coal plants are running dangerously low on stock piles, which may force the nation to buy expensive shipments of the fuel or else risk blackouts. 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 racing to get some of these. you know, there's panic buying on the nation state level and the next panic buying will be a bit quite right. while the incentives in 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 yeah, algorithmic, mathematically pristine of 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, it trillions of dollars. it's going to all find its way into bitcoin. that's i 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, ah, ah, ah, ah, ah, ah,

frances macro recently said quote, the europeans must stop being naive when we are under pressure from powers, which at times harden their stance. we need to react and show. we have the power and capacity to defend ourselves, vold words, but does europe have the political will to actually defend itself? ah, welcome back to the kaiser report. i'm max kaiser time at a turn to rick ackerman, of rick's pix 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 ever 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 they'll may be? it's sort of dropped out of the news and in my car a 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 were in that receding, tied a little bit of quietness on the news front. but i think the problem is still very much there was i recall after the 2000 rank level financial crisis, what financial pundents were saying is that the world will recover 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 checks that were used in america and on 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, you know, china has become, if anything, more unpredictable because there seems like they're finally doing on his business. you know, they've essentially denied some of the, their own bubble stocks access to u. s. capital markets. and in the case of ever gran, there's just appearance of wanting to just let it happen to let it play out. and the, the bailout has this one possible feature where essentially all the, all sure investors get. and in, 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, 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. all right, well at around the time of the turn of the previous century, we had something somewhere in the united states, a teddy roosevelt who was called the trust buster, anyone after the robber barons had become so big that they were influencing government to and it to the extent that folks found unacceptable. so maybe president g is the teddy roosevelt on the 21st century. rick could be, you know, he's, he's gone as far as restricting access to the internet to gamers. so 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 you never fly in the u. s. biden said, well, you know, we want are,

we don't want the 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 every grand might mean. globally, you know, we have the contagion in 2008, when layman brothers blew up in various turns, blew up. is wall street exposed to this? well, for sure. and we certainly have the experience of the 20089 to a symbol, the right pieces spin wise to make people think everything will be all right, but nobody really knows how it's going to play out. they've had a quote unquote, responsible statements put out there. 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, you could own, has been hawk 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 could ever grand could be 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. all righty. so i guess before we talk about the hyper hypothesis, treasury mom and you've got to just do a 32nd recap to the audience about what a reverse repo is. well, you have a market that, 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 a 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 and 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 on brown who's a san francisco friend of mine, from the hedge fund world. sh. and what he's saying, and we've seen this in a markets the supposedly bluish blue chip collateral. you can hold as u. s, treasury's, but there is a shortage of them really. and it's one reason why anybody betting that some ramp inflation is going to push bond 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 so when the collateral was actually needed to get through some crisis,

a lot of the holders of that 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 clear, sean brown on your side was making these points and that's really opening up a interesting line of query. you know, we've been talking about this for quite some time. the problems of re i papa cation, you know, in the united kingdom, for example, they have infinite rehab, popping cation. there's no limit to how much you can re hypothesis and lend data security. and then re landed, landed over again as you say, somebody securities of atlanta 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 u. s . and have the same exposure here through that 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 hyperlink, the cation move to the london markets, which were less regulated. 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 brokerage accounts. yeah, exactly. and, and we also say 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 is straight up accounting,

they is a model they'll say, well they say carries 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 the stuff. so this hyper, i propagate a 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 an infinite negative collateral. if that even can, it can get into that. if, if that makes sense, well, you know, every time you use the word model, it's kind of using a tongue in 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. cale risk that no one's calculated, even in some of the stress tests that they do with the banks. so, you know, we're,

we, and it's also possible say nobody really understands these markets. everybody has a, let's say, a niche understanding of some feature of it. let's say you could have an expert at citibank, who knows how to take the living in reverse floaters and, and turn them into, you know, billions and hundreds of billions of dollars worth of negotiable. and it's a digital instruments. but even that person doesn't really know how all the things connect up. and again, as i mentioned earlier, as we all know, the systemic risk. is there a relative to some very small things that could happen? we're kind of looking at ever grand, 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 trigger event all right, so we know that the riveted tvs are printed and the hundreds of trillions that

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 the relative training in the globe. so why do i have my people pay taxes? you can simply for, you can spend 3 minutes press a button and cover that cash. why to people pay taxes? i via myself the same question, you know, if they really wanted to stimulate why not just have a tax moratorium 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 the 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 the 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 can paid on whether the movie makes money or not. that you're so right, budgets are huge. so if you're a bank and you can create a half a quad join in derivatives, you get a percentage of that. half a co 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 incentivized to just create more of them. right, rick. right. and something similar is happened in the markets themselves. you know,

the, the people who regulate them, i guess, see the, the realm that they regulate as there was called a fif them in the larger it is, the more trading volume you, you have, the more responsibility they can impute to themselves. i had this is fascinating. we're going to have to carried over to a park to thanks for being on kaiser report. thank you very much for inviting me, your max. and i was going to do it for this edition of kaiser report with may max kaiser and stacy herbert want to thank, i guess, rick ackerman, of rex pecks. until next time i ah, ah, ah. well, the pandemic, no, certainly no borders under nationalities. and you face has emerged, we don't have with the we don't on the vaccine,

whole world needs to be ready. people are judgment, common crisis with we can do better, we should be doing better. everyone is contributing each in their own way. but we also know that this crisis will not go on forever. the challenge is great. the response has been massive. so many good people are helping us. it makes us feel very proud that we're in it together with ah thompson, with

normal quote. yes, please. it's your book and you can use not sure i talk with .