of her in the world. well, certainly the one with the largest debt, $300000000000.00 in debt gone horribly wrong here is from investor pedia, understanding reflexively, reflex city theory states that investors don't base their decisions on reality, but rather on their perceptions of reality. instead, the actions that result from these perceptions have an impact on reality or fundamentals which then affects investors perceptions and thus prices the process, a self reinforcing and tends toward this equilibrium causing prices to become increasingly detached from reality sorrows views the global financial crisis as an illustration of the theory, in his view, rising home prices induced banks to increase their home mortgage lending, and in turn increase lending helped drive up home prices without a check on rising prices. this resulted in a price bubble which eventually collapse resulting in the financial crisis. and

great recession, i believe, was taken from george services, classic book, the alchemy of finance. if i, if memory serves which i read would have 1st came out many years ago. and it's very important point when you live in a post hard money world starting 971 words all fia money ref run saying other fia money. there's no such thing as a fundamental analysis. there's no such thing even as a technical analysis because prices are exist in a dream world. hands my quote, sometimes a cigar is just a cigar, which is taken from freud, who probe the subconscious mind and was able to dig into the dream world and pull out meaning from it. prices are driven by our collective neuroses and it's self referential and self feeding, self reinforcing and as sorrows points out, it creates disequilibrium or price dislocation. this i ever efficient market theory

. fisher market hypothesis is complete holcomb. it was never true but never more untrue. then in the global financial world, we live in today, and this is very misunderstood because in the financial price in the wall street journal and in the financial times and on c, b, c. they still claim to the belief that markets and prices are driven by something called fundamental analysis. that's false. people still looked at so called technical analysis. that's meaningless. as peter lynch said, another famous money manager technical analysis is perfect and predicting the past . right? so this is a not misunderstood point, i think people, the only thing that's really showing this to be a complete waste of time. that is to say, any attempt to value securities or a global economy in any rational way is of course, bitcoin with us, a kind of another point. right. and also it seems like geo politics and also geo economics is all about competitive advantage. they're all trying to study their

enemy, the other side of the board. and of course, the 2 great power is in the world right now. certainly economic powers and united states and china and china is very close. mysterious people don't really understand it. like we're going to go into this ever grand situation. and as dan collins has pointed out here on the show, they've built all these vast go cities across china ever grant being one of the biggest builders of those. but the deposits from the chinese people were real, they paid cash up front. the article points out in the wall street journal that they don't know what the cash is, where it went to. nevertheless, so it's very mysterious over there. whereas in the united states, like it's too much information and you can't tell what is real, what's not. so this, the american dream, that myth of the horatio alger, that everybody can make it, and property seems here looking at the outside from the geo economics,

political chess board of china. you know, they look at the united states and, well, every, the middle class grew because of property prices, right? so, to me that seems like the reflexively here is a think that's the reality of how it all happened. like that's way to the middle class of for their huge population there. and let's look at what they've done. they went a little bit overboard. i would say in terms of how important house prices are to the chinese economy. the article in the washer journal is called empty buildings and china's provincial cities testified to ever grand debacle. the property giant borrowed heavily to develop in out of the way places like lou on. so 1st of all, they had to build and outweigh places because shanghai and beijing are tightly controls in terms of the actual land available for property developers. whereas the secondary sitters cities, companies like evergreen, which is founded in $1096.00, could go directly to the city, you know,

board that runs the city and they would kick farmers off the land and take the land and build a city. so as that was happening, here's the impact of real estate related activities on g, d, p by selected countries. and here's china versus u. k u s. germany and korea. and as you see, it's gone way beyond anything even like the u. k which is heavily reliant on property prices. it's twice who at the u. k. has been and at the worst of time it, they went a little bit overboard in terms of, of, of how important property should be to an economy. yeah, the rules for playing me chinese version of the game monopoly or are quite different. it's actually just open the board, but lighter fluid on the board and set it on fire. it doesn't last long, but it's an exciting game. but nevertheless, the reason for this is the banking system. so unlike amount of these other economies like the american economy or the british economy, where there is diversification, there is a technologies that's growing. there is different sectors that are vibrant and

contributing to the economy in the chinese economy. it's, it's all about housing because that's what banks are comfortable lending against banks. chinese banks are not comfortable lending against entrepreneurs necessarily . they only want to lend against real estate speculation. so this is created the biggest real estate bubble in history that's now collapsing. and i should note that kyle bass, who has been talking about this for several years and getting a lot of flack, looks like he was absolutely correct. i would point your attention to 989 and japan and tokyo, that was a pure real estate bubble driven phenomenon. it popped in 1989. and that stock market the new k dropped 808590 percent. and the countries now 20 years in to a deflationary recession. so i think it's actually more spectacular in china. we

don't know yet if kyle bass is right. we do know for a fact that the chinese government is indeed and the proof is in the pudding. they're cracking down on many of the oligarchs of their economy. the very multi 1000000000 are wealthy, and that is impacting the, the markets in terms of property like ever grand. as dan collins points out, the actual citizens within china, basically paying cash. they don't pay with leverage, they don't pay with borrowing unless perhaps they have a 2nd or 3rd property. but their 1st primary property they have to pay cash. it's in every grant goes to the international market to lever themselves up. and that's a way for people because it's hard for an overseas investors to get access to china because of their regulations around having to have chinese like chinese citizens have to own the land or own the property and stuff like that. yeah, yeah. 2 examples, i gave the japan example 1989, the various corporate board members sat on each other's banks. there was tremendous

collusion at the top that led to that spectacular collapse. i would also point your attention to iceland around 2008 or so the collapse of the icelandic economy and the old icelandic banking sector because the icelandic banks are doing something so more now than ever grand is doing. and other chinese property companies are doing they're using debt not only just to create leverage, but to then cross collateralized the debt with other debt players in the system. and so the leverage it looks like there might be 50 or $60.00 to $1.00 of those, probably $500.00 to $1.00. it's also important to remember that this is going on amidst the global pandemic. b emit, said d, dollarization globally emits d globalization as we have pointed out. so the energy crisis that is happening apparently from the signals that are being sent out of china, that there is an energy crisis. part of it has to do with their trade conflict with australia, so they stopped importing coal from china and from australia, which is now apparently they're secretly also offloading some coal from australia

to mitigate that. but nevertheless, the article here in terms of the reflex 50 of looking at america and kind of copying it, but going a little bit overboard, essential to ever grants. expansion was a real estate economy of cross china, in which people from developers to finance. years to city leaders had an incentive to perpetuate the boom. ever grand found a market for its projects among a range of buyers, including corporate employees and farmers seeking to move to more urban areas who believed values would rise no matter what, and assumed beijing would protect them against decline. the same thing happens, and the housing bubble of 2005, 67, that popped in, caused the global financial crisis. everybody assumed fannie mae and freddie mac would have the back of the bond holders. many of them overseas. many of them in china that, that they would bell out the system. i think it was

a confucius who once said, never smoke your own belly button lint, i think was a confucius famous saying, you know, this is an example of what's called your grasp it exceeding your reach. right? what is being attempted to grasp is well beyond the reach, right? you, there is only so many pounds of trash. you can fit into a 5 pound bag of trash in the spot more than 5 pounds. and it just hit the physical women's, it's, it's a tilt til game over this things get the suckers going to happen in a way, you know, snake oil is easier to sell than something that's real. reality is harder to sell than the fiction because you can make up stuff with the fiction. if the proof is right there, like it's harder to sell something that's not there. so in terms of like this, this, the, the economic miracle or the, the boom times of china is like this city lou on which,

where ever grand built extensively, they huge go city there. one thing is like the average salary, their per year is $3000.00. so these are like apartments that are starting at a $140000.00 an up that they're trying to sell to people or who are in $3000.00, right. we saw the exact same thing in the sub prime crisis in america who had no income yet, or $3000.00 in income were being given $5670000.00 mortgages. it with the hope that they get bailed out in america. they did belma, john paulson and hank policy, excuse me, and timothy gardener and ben bernanke, he just wrote a multi $1000000.00 check to bail out. jamie diamond they are, it's still unclear whether or not the assumption is that beijing will bail out, at least domestically the situation. they might stiff foreign creditors who knows, but nevertheless, that something's going to be rectified here. we'll see. we'll, we'll watch it play out. fascinating. well, we're going to take

a break. let me go back much more coming your way. ah ah, with all ruin bedroom shaped bankers and those with

dares sinks. we dare to ask in with these people learn from their own experience. how vulnerable a business is to the bank. so he pushes my business over the age, pushes me right to the edge, bankruptcy. now i realize we will group. this isn't just the back that it may be involved in this is the concept. see, firms? it is the lawyers, these people have got one of their stories at a walk kinda whistleblower. tell people's marriages have broken up, lost their family homes. it is spectacularly devastating for people's lives. we have committed suicide, but left behind north. the explicitly state that it was the constant intimidation

and billing by bank officers that led them to i took the spear, it's obscene. these people up nor sold for well go back to the kaiser report. i max kaiser, it's i'm out of turn to craig, i'm k, i g f for frank. welcome back max, my friend, nice to see j. p. morgan says their institutional clients for, for a big going to goal. not just their high net worth client, but actual institutions want bitcoin instead of gold as a hedge against inflation. your thoughts? i don't understand what i mean if that's what you're trying to accomplish. and i would just say j. p. morgan perhaps has a little bit of a conflict of interest there. you know, they what's known about their position as a bully and back. but yeah. why don't bowl i it's, it's been a heck of

a year in the precious now that's for sure. and then everything that we thought would drive christ hires instead during price lower. and i suspect that will change once we get into 2022. but man, yeah, why not own will be my answer to that. the answer to that is that there's no price discovery in gold that's not allowed to trade freely. it's monopolized by the central banks and big banks and 1000000000 banks, and they have for every ounce of gold to 50000 ounces of paper gold. they don't want the price to go higher, because it's in a free market. that's why the institutions want, they want inflation hedge that's sensitive to the market. they don't want to inflation hedge that only peter shift, thanks works. peter shift notwithstanding. i'll still hold my flag though that that market in correction for price is not going to last. i mean it's loud k minus last 45 years since 975 where they started treat futures. but at some point there

will be enough of the crisis that people will demand, physical gold or the currency system will collapse like they will have to pass and gold will have to be rebellious. it's kind of like this. the trillion dollar platinum going right. just another step along after losing confidence in t, r in new in eventually, and then all the sudden anybody want go too. and at that point, the price is going to be $1750.00 announced and so on both and you know, for their specific reasons and then just wait for this all to play out. talking about this a trillion dollar platinum coin, which of course became talked about quite well known in the world during the 2008 crisis. it's back and play. and so they conjure up a one trillion dollar platinum coin that apparently there's a loophole in the constitution that allows this fraud to take place. but why not just conjure up a 30 trillion dollar platinum coin and get rid of all the debt? great,

exactly. it's like got the always the argument about raising the minimum wage. well, you can reach jane, want to make it 25. want to make a 50. i mean, because there are economic restrictions to doing that in this idea, the platinum point man always was he had academics and bureaucrats, the think tanks. they all exist in this kind of closed off world. you know, where everything is like theoretical physics. they divide some formula that completely ignores reality, but in their formula it seems to work. yeah. ok, fine. you can find a maybe a place in that in the constitution that says you can do this. but in the real world, for god's sake, there's restrictions, you can't, i mean the whole system is i. then i said this b r systems dollar based system is based on confidence. there's nothing back in the u. s. dollar or your treasury bonds and notes other than confidence. you don't printing a coin and just say here, this is a trillion dollars. i mean that is a fatal blow to the confidence and i got, i wish you try it, max. i,

i think you'd be remark, hilarious to watch the aftermath, but she's, i was on twitter or this week and that guy we all from bloomberg was tweet natalie saying, oh no, this is perfectly fine to do. i'm like, what planet do you live on? do you want to try that? yeah, go court. let's see what happens. the only way could come up with a case where this might work is that the same encroaching surveillance, they become so pervasive that we effectively have the state not only controlling the fee money supply, but also getting involved in price pricing of the product, pricing, everything in the economy and controlled command control it in, let's say, in malice, china they could print a trillion dollar coin and make believe it was worth something because the, nobody could dissent, nobody rebel because otherwise you would be executed. how about so america is the course americans. i'm like, here's

a trillion dollar coin where it is literally the biggest joke ever and economics and bloomberg isn't on it. but if you dissent eager to go, like, i mean that's the only way this works. and so it's, it is probation, it's everywhere in, take it all the way to the money supply will get out. the central banks are desperately rushing to cook up the central bank, digital currencies. i mean that's, that is the extension final extension of this war on cash to you. and i've been talking about for 10 years. it was, you know, the reason why i liked on something tangible because they can eliminate cash in make it, you know, your ability to transact things by itself. things are or own a business and in trade with others. if they can control that medium exchange. sure, they just zeros and ones. they can take it all away from you in a keystroke. and so i, man, i know, i think it's all a sign of where we are in 2021. this is not even a creeping authoritarian. it's word terrorism anymore. max, i mean,

it is jack booted walking. you know, right torch. it's here. i think that's trying to apply them. coin is like they, they the symbol of american authoritarianism. in the 20th century you find the gone full. now. this is the cultural revolution. there is no descent. every one thing must be lock step with the social agenda socialism already so now in $971.00, of course it's all started when we defaulted on our debt. in the united states, close the gold window. it didn't seem to matter at the time. however, the us trade deficit just sit in largest ever on record. that seems to be more tangible. what are your thoughts? i mean, it's just all parts symptoms the same problem. you know, it, i'm, my site is, you know, we're in our tagline is when it's been preparing for the end of the great change in experiment. and this, you know, john maynard keynes just had this debt based system that you know, worked as long as you could always continue in service. the debt. we got that point

in 1971 where we could no longer have sound money anymore. because we couldn't continue and grow the economy in a point where you can continue to service a debt and things are just gone exponential ever since. we're 30 trillion dollars now in the debt that we know. and so as we get to 40 trillion and 50 trillion there year, any more, these crazy ideas, like this trillion dollar coin all in an attempt to keep the plates spinning in this place. like i said, mainly just confidence, you know, confidence that, you know, there's gonna be some value in this currency tomorrow or next week. and i know a lot of is a good match, i'm sorry to kind of go off on a tangent that a lot of this is geopolitical to, you know, all the craziness exiting of afghanistan back 68 weeks ago, gets to confidence in the u. s. and by extension the u. s. is financial system and so that means we're just taken arrows left and right and competence and is that fails that's. that's what you get for my more right. even the charge of the,

of the march in the weimar republic. yeah. got worse, and inflation got worse and evaluation currently got worse, and then just those vertical at the end like a hockey stick. and that's when you lose confidence. and that man, that's there, no doubt. that's where we're headed and it just gets it. we're heading there faster and faster because the exponential quality of this, you know, it, it just, it by day very definition. and it works that way. speaking of vertical death prices up 40 percent. that's a vertical move. is that a harbinger of things to come? you know, we tried to convince you this, the system of colleges, you know, they try to commissioner, all one offs in lumber, iron, or steel, and copper and natural gas. crude oil, is it cemetery your highest? i mean, these are all a function of the central bank policies. all of this cash has been created around the world, not just in the u. s. for the last 18 months, but really even some 1828 years. and that's what's driving it's, i mean the,

the end result of this escape dealing with the code in craziness was always going to be stagflation were never going to be get back to where we were economically 18 or 19. and the same time inflation was about to take over and that's exactly where we're headed now. signs of that are everywhere. and that's, that is, i mean, it's really problematic for the vast majority of people, whether it's in the us or europe around the world. because you're just getting squeezed in so many different directions by stagflation and now that creates even more economic and societal unrest. and so it's going to a very awkward place where we are here in late 2021. and, and so you know, i look at the coin, i look at the hard money that i own, the sound money that i own. and yeah, the price fluctuating would be quicker to $40000.00 a couple weeks. i don't care when i know where this is all headed. and so we just

kind of keep your eye on that longer term picture and, and be aware of the certainty of, of how this is all playing out stacked last and of course, back in the seventy's i, when next, and did close the gold window. and you had an attempt to pay for the vietnam war by massive money printing cause a lot of inflation and the economy was a stagnating. so you have this stagnation, i believe. even richard nixon at the time made a nod to canes in his own. what he said were all keynesian now. not so he was aware of it as well. and now we're at the end in all of this was the emergence of a leader of another country, all salvador, who said, we're going to put this nic sony in canes, in era to an end. we're going to restart the global economy on a big coin standard. and that of course, is el salvador is el salvador, the new america, you know,

noticed the rally up to that point when it officially happening outside in, in the very day between false 10 percent. we think that was coincidence, max, i mean bankers are going to fight as every, you know, everything everywhere they can just to give you the update of numbers. now they all, salvador, $30.00 per chiva wallet. air drop is now all in profit. and the amount of people adding to those accounts in el salvador is greater than what's being spent. so i'll, salvador is becoming a hyper bitcoin is ation because big coin is to the concepts that were prevalent in the constitution. the bill of rights and the declaration of independence. el salvador is a new america boot. kelly is the new george washington. this is the new century. it's happening in el salvador. thanks to pick going craig, back to where we started max. i mean it's a little bit of what the g. p morgan thing was in el salvador, at least the coins using the place a goal. you know that you're providing a sound backing to your currency. our lease is sound alternative. so more

power to my father, i just when i can, when i'm very much concerned with the risks around the globe, the energy prices that you mentioned backs are going to be a real problem all winter long, especially in europe, where they live out of russia natural gas, the politicians in the central bankers are going to deflect the blame that is solely on their shoulders. and they're going to look for a book, man, you know who that's going to be. they're going to blame it on. in the meantime, i'll get it's going to be a long, whole close hard winter for people like it should be different. you're really around the plant because energy press are so high. and again, that all comes back to the feet of the central bankers, the politicians. and that comes fraught with danger, geopolitically and then all of the stuff, you know, i like where we're going, we're day making steps to getting some freedom back. but man in between now and then it's, it's going to get worse work. it's better out of time. thanks for being on the kaiser report. my pleasure. good. seeing you back. all right,

that's what i do for this additional because a report with may max kaiser and stacy herbert want, i guess, craig happy if it's yes, battles report until next time, bio ah a wrong when all proofs just don't hold any world that you have to shape out the same because the african and engagement equals the trail. when so many find themselves worlds apart, we choose to look for common ground. ah, with the most basic look good. i see you back, please go visit us. i bought

a dial to them. a couple of these on your weight, but i know from politicians to athletes and movies. does the musicals? does it seem to every big name in the world has been here with ms. you can check out this. could i see a budget when you get the call when you finish with what does not give me a glover you spoke with said basil makes dreams come true that every one who falls in love with people like what mm . beautiful ocean was time on what it was. i middle august will still out with any initial i can leave the vehicle with

you to get that with. because if that's something you would preview them with the cool got that's an actual percentage of your properties was for what fin the but only the feel for years. right. what that's for the what like you with nice seems to them often when he's got the west, when i called them. so will the show most of for phillip keeps coming from the, from the news book. i live with us. that's still the same. i mean, just this global. oh gosh, slave to 3 years of senior to one. subscribe little squiggly. ah, some coaches of what are one. what do you think that us them, i mean, on, i be certain that we certainly

do. oh, no headlines, a swanny u. k. power plant wants load the suit, the green turns out to be the country's biggest carbon dioxide emitter, made a blistering energy crisis ongoing in the country. twitter tests a new feature in a bit to make conversations more healthy by warning uses. things could getting 10 so hated. we put that plan up for debate they long ago lost control of their product. this is just another laughable way that they're yelling in the breeze for off worst that has long ago left the bar. they can kick you off, they can put up signs, they can.