spits on your duck. awesome voice. now watch. done the for me at that a bull up. my pizza is emily. apple's goody of sham sheila? this is kim sylium. shes thought city assist the y fi, ela abram co desk. my thought watching in the, in the you fortune pretty up my be a lot about this morning after search financing. ah ah, ah ah.

hello and welcome to cross stock were all things are considered. i'm peter lavelle . the law of unintended consequences is in play. and in a very big way, the west attempt to seriously damage the russian economy through sanctions is very risky and dangerous. those most enthusiastic, the sanction are beginning to understand the same sanctions will hurt their own economies and citizens, ah, cross sucking sanctions. i'm joined by my guest, jim rogers in singapore. he's an international investor and author in london. we have mich firestick. he is an investor in author of the book planet pansy and in los angeles, we crossed up i. e. and he is a strategic planning consultant, a private equity advisor, an independent, he can amik analyst our job in cross hoc rolls in effect. that means you can jump in any time you want. i always appreciate jim, let me go to you 1st. here is the biden administration attempting to sanction or

secondary sanction, half the world economy, because that's what it looks like to me. go ahead. any politicians all over the world and bureaucrats love sanctions, either. i have written about it in broadcast about it. they really don't work other than maybe for a short period of time because the few people i know of know in the case that we're sanctions have worked ok. that's a very good citizen who quick answer from you mid to the same question. do you because that this really is a, you know, we have to put it all into context. i mean, russia is a member of the g 20, at least still, and you know, the, it's being sanctioned and it's something of an economy this size. it's never been done before. this isn't the ran not panama? it's not honduras. it's russia is it's going to work. go ahead, mich. well, i think we've got to examine all the points here. i mean, this is a multi polar world, and a lot of people still believe it's a unipolar world. so there are long term consequences for every action. and you

know, the 1st couple things we need to think about free speech and due process and rule of law are paramount to any democratic society. and i things have changed so drastically in the past 2 years and things are moving so quickly. it's difficult to see what's going on sanctions and secondary sanctions, as jim rightly said, i don't see where they've ever worked before. except now we have a form of 3rd party coercion trying to regulate all global transactions. this is playing fast and loose the due process. in the rule of law, we already have inflation because of the green new deal through the back door and net 0 that's pushed oil prices up to 100 percent from november, 2022 before the conflict in the in february. so they are already up to 100 percent, they can go much higher. and i think what's happened is this is become counterproductive because what you've got now is you've got russia, china, iran, india, brazil, saudi arabia, u e,

and africa on one side. and there's pope massive polarization going on, and the west is trying to coordinate their team together. so i think cooler heads need to prevail. i think that there, there is no need to have a war. this could have been a big compromise in advance. where we got you today. it's concerning. pot pie the same thing to you. i mean that, again, that they, this global grasp is quite a amazing here. again, historically sanctions don't work, or least they don't work at for very long. because economy suggests consumers adjust as well. but i mean, it, we take a country like germany, and i agree with mit, cherry, and i mean, everyone's getting their camp organized. but i mean, if you're totally, if you're significantly dependent on outside energy as germany is on russia, i mean, that's almost like turning off the switch. i mean, this is, this is difficult to grasp the magnitude of this go ahead, bye. yeah, the west is engaging in a fist fight where the eurasian blocks keyword block were just fighting back with i

quito or judo. namely, using the force of the opponent against the opponent, meaning the east has done its homework. the blow back from these sanctions can significantly harm non sanction financial entities. and the global derivative space is dangerously complex enough as it is to where financial press certainly isn't gonna explore viable risks preferring. they're just going to want to do a wait and see stance. copy in order to just prevent panic that we don't do that here. no one knows the size of exposure in off the books, euro dollar markets. so if one of the parties is made a liquid due to these sanctions, it could cause exposed banks to fail, restrictions piled on russian banks would block counter parties from meeting derivatives, contract obligations under i sta agreements. and the trick then becomes how to close out highly leverage positions containing just on an indefinite open

a risks. these are forbidden issues to be discussed in financial press. western firms could lose control over close our valuations for terminated transactions. after 2014, the, my don and, and crimea and everything. the international derivatives body gave sanctions, specific language designed to minimize disruptions. but counterpart is haven't even worked them under their contracts. i don't know if it's laziness or they have other risks that they're trying to alleviate, but you know it's heads up. now. liquidity is deteriorating, and sanctions kick in on 7 russian banks this saturday. so trading out of positions was much longer maturities will not be easy. i sense there something systemic approaching. okay, well that i want to jam jump and go ahead. i just want to say, you know, the russians have also impose sanctions. i were talking like that only the west. no, but the russians have also enclosed sanctions. they're not gonna work either. this academic studies would show, i haven't read them, but i read about them. i could make studies show the sanctions do not work. holla,

cation like for p r for publicity. i say love, we did it, we did it. we could do a week later. everybody's forgotten about it, including the sanctions and the market always finds a way to get around. thanks mitch, do you agree with that? yeah, well there's always way around sanctions. i agree, but this time i think we've got a bigger problem and i mention is years ago, back in 2014. i think, 1st of all, you can never taper a ponzi scheme and we've never gotten through the 2008 credit crisis. now. we just have new crisis is to wallpaper over the lar jess and the printing of trillions and trillions of dollars that the the world has become a wash too much money and they're trying to assign the blame in 2019 in december, somebody asked me i did an interview and they wanted to know, i thought the most significant coming event would be in the coming decade. and i

said, the u. s. dollar will lose its reserve status. i think that's on the cards now a lot sooner than anybody thinks. because what we have is an unprecedented food energy and scarcity crisis right now. and the problem with the group of, of, of countries now russia, iran, and china is the oil prices, which are already trading at $100.00. $16.00 right now in the us of pushed energy prices to the point of affordability for most americans, that price can be tripled or even higher. should iran decided to close the strait of hor moves, and this is also something that people need to look about. these unintended consequences, it could be a result of these sanctions because we started with the currency war and then we moved into a trade war situation. and the bad result of that could be a hot board. we're nobody's a winner. and that's why we need people to de escalate, deescalate is what we really need the escalation,

which it seems to me that we've had a lot of escalation going on in know the escalation. yeah. well i, i, i think again it's as caught heads and they're ideologically possessed that are pushing this here. hi. i mean, this is very, a catastrophic, a place that we're at here. but you know what, i'm listening to all 3 of you. and i have to because of my job, watch a lot of cable tv. no one is saying what you 3 are saying. why go ahead pi? because it's, it's somewhat of both the gym and mich reference. it's a confidence game, a confidence trick that's decades old. that was ratcheted up 51 years ago after nixon took us off the gold standard, which is essentially a global default. ah, but you know, they've been and reinventing had reinventing the confidence trick. and it's hit a wall now the collateral risk and a systemic risk issues are vastly they're too large to be even hinted at. so most

presses just saying, well let's wait and see what happens. like high inflation already existed pre february 24th. ok. and on collateralized trades raised funding and credit valuation adjustments for banks spiking hedging costs due to soaring spreads on russia. linked assets. this in turn, strains, liquidity, people don't understand like that. institutions are far worse off than they advertise dismissing libel or a few years ago as a swap reference ray doesn't help with funding risk transfer either. so if russia stops exporting energy to europe, for instance, than european corporate already under cost squeezes from inflation, are going to face credit crunches. if for some say, when russia defaults on $150000000000.00 a sovereign debt, then we're talking lehman brothers and even 1914 level systemic risks. russian doesn't want to default, i mean, it's not their intent. but western banks may force it to begging questions over whether or not there's a deeper sense of control demolition and asset calling going on here. okay,

but again, jim that cannot be good for what western financial institution seeing russia default. go ahead, jammin singapore. well, i don't really want to go back to what we said before you go with, you know, the america shooting itself and, and put as far as us dollars. that's for the us dollar is the world reserve currency and medium of exchange with the world's memory. shane is supposed to be neutral, you can use it for anything. go friend by a bow. anything you want. that's what it's supposed to be. but now the us is changing the rules and they're making it. you know, we don't like you. we put saying, you cannot use us dollars. well that's making a lot of people say, well, wait a minute, even friends. so when we got to find something else, as already moved by china, russia, india, brazil per around, and other countries to come up with an alternative. this is only a seller, i don't like saying, i'm going to america. but this is accelerating. the move away from the us dollar as

worlds medium of exchange match. we've got 40 seconds before we go to the break. talk about the dollar. go ahead mich. well, i think the u. s. dollar has as jimmy's right shot itself in the foot. but i think that's been a long time coming, coming with the money printing. and you've got, you know, as i explained in my book that the entire government debt situation globally is the biggest ponzi. ready ready steve ever seen the planet ponzi, it's so much debt that it can never be repaid. and you can, you can never taper upon the scheme. and this one's the biggest of all. so, you know, when that happens, people lose faith in the currency. but i think what will happen is will be a currency based a currency that's based on exchangeable commodities and that will. ready the winner up going forward. okay, well that we're going to go to a short break gentleman, and after that you break, we'll continue our discussion on the sanctions war affecting just about everybody in the world state with artie.

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that you oh, is your media a reflection of reality in the world transformed what will make you feel safer? isolation community, are you going the right way or are you being that somewhere? direct? what is true? what is great? in the world corrupted, you need to descend ah, to join us in the depths will remain in the shallows.

ah ah, welcome to cross stock where all things are considered. i'm peter real well to remind you we're discussing sanctions. ah. okay, let's go back to los angeles. i want to see, but i mean all 3 of you guys are really, really smart and i want to see behind them. what's going on here? i mean, if we see a fragmentation of the financial system, are we going to see like a very defined trading blocks? now, i mean, you know, we've, i've lamented globalization ever since they invented the term, okay. it is this kind of an anti globalization process where we're going to have a, your ration block, we're going to have the u. s. why is this what we're going? go ahead perhaps that en route to something a little bit more integrated of via a multi polar rather than unipolar even bipolar world of

a just i wanted to just go back to mac and jim were referencing the dollar issue. i just wanted to pose the question elect to what extent is this 48 year old picture dollar reserve recycling arrangement, enabling liquidity fixes against systemic risks. you think about 19971998 long term capital management, 2000 in a financial crisis as steep as they were there were means of being able to bounce back, perhaps because of the innards of what the dollar and petra dollar a standard has been i asked, because putin, as you all know, just ask for gas payments and rubles, and, and, you know, an act that is actually not prohibited by the sanctions is completely loud. and it's being very quietly considered across europe. and yet it's clearly aimed at tweaking dollar her gemini, possibly triggering insolvency contagion out west while providing an energy currency alternative. that's also tied to like a $132000000000.00 worth of russian gold stored in russia,

which are like 21 percent of the russian reserves. so it's, it's, they're playing go, the west is playing checkers. but i sense that everyone knows that there's a shelf life to the petro dollar standard, and the, to the dollars reserve currency standard. and the east is just being a very shrewd and trying to replace it while minimizing damage to itself. and so it's such an excellent question. what is the future of the petro dollar? i mean, we've, we've gotten so wedded to it. are we seeing the, it's final gases? go ahead. peter, just recently the chinese said to other people, saudi arabia, listen, we're going to pay you en route and red mending. so in the end, the saudi is said, okay, we'll take red men be sorry to have been a great friend of the american with lots and lots of dollars euro dollars. petro almost all kinds of dollars. but now the chinese has said to this,

saw these america's great friend lestrade and read mandy. i did say they say, well, what is the implications of that gym? again, it's more and more that is some of the seller rated move away from the u. s. dollar, but yeah, i'm american theater. i don't like thing does, but i can see that america making a grave mistake with this quote, sanctions to hit people and it's hurting us. it's going to be and my children more than it's going to hurt america. mich, in the implications of this for europe, are really immense because i would go far as to say, and no one of the program has to agree with me. but i will just say what i think. i mean, this whole gambit with ukraine is basically directly to regime change in russia. but i would posit this will see regime change in europe all across europe. if it continues go ahead, mich, well, look, i don't know about that. i know that that's what they'd like, but you know,

this regime change stuff never worked before either, but it worked out worse than the sanctions have worked out. because look at our examples that we had in either in iraq where it didn't work out in libya, that didn't work out either. but as far as what's going on now, it's boring a fact and i couldn't agree more. this is a busted flush. it's a bad trade, one of the biggest problems that we have peter throughout europe in the united states now is we've got massive censorship. and we've got a crazy social media in the past 2 years that put so much propaganda and disinformation and misinformation out there. you've got fake fat checking, and you're only allowed to say certain things. if you say the wrong things, your social credit score goes to 0 and your, you know, your shun from polite society. all kinds of all actions have consequences. we live in a world now we're all, you know, the sovereign immunity and j jim can attest to this because he's an old timer like me. he can attest to the sovereign immunity of the central bank that is sacrosanct

that no longer exists. so when you get rid of due process and the rule of law, what do we have left? how are we trading things? how do you have confidence in the system that does that? and i agree with jimmy. i'm look, i'm american to and for me it's difficult to understand why they're doing this because it seems like they're just shooting themselves in the foot. and it's not working out some kind of compromise arrangement because this is not the russia of 1950. and i think that this is a big underestimate by a lot of people on the other side of this. and if it's a blah bluff, it's a busted flushing telling you and it needs a rhythmic ok, j. i say you're just wanting to jump in, go ahead, real quick. go ahead. you know, we're talking about sanctions. i get to repeat what i said before, the market always finds a way around sanctions. i remember 40 years ago i met a guy and i said, what do you do? he said, i'm a sanctioned buster. i said what? and what great glee. he explained to me whenever somebody puts on sanctions in his

guys get together and figure out a way to wash the sanctions. i mean, they've never worked a good publicity for a few days, but in the, in the market finds a way i'm in all peter. i've travelled around the world, many job the, you know, and i cannot tell you how many times i've run into sanctions busters and black markets and everything else. the market is smarter than bureaucrats. get 1st year, particularly government officials. ok, popeye. where is this all going? i mean, i obviously, i live in russia, we're beginning to feel the effects of some of the sanctions here. i don't know if it's the beginning of something or if i do it, this is what's really what we're gonna have to deal with. we can live without mcdonald's and netflix. yeah, i can tell you that here. but i mean, why should the, why should russia really engage in that with the west? any more? i mean, they, they tried for 30 years after the cold war. it's, it's a busted flush is already been said on this program. that's why i know that the

future is to the east. i mean, rush has given up on europe. i mean, where is it going, is that regardless of the west, meaning the trans, elana cook community collectively, certainly the private banks and central banks will need to resort to printing money vastly at up vastly higher rate then again, pre february 24th and it were already experiencing to real rate of inflation and the double digit chair in the u. s. but in response to potential cut off of energy, a counter steps taken from the east currency war. there will be just, you know, and despite raising of interest rates, there will need to be a variant of a quantitative easing re introduced that will just further tweak the dollar. and i think collectively fia currencies because the east is figured out how to go back on

to a credible a gold standard. a but oil on gold is i wrote a paper 7 years ago, a prescriptive paper centrally. is it linking the most valuable commodities on the planet and to the re conception of what money is? okay, so came, what does that mean for western economies? okay. i mean, as we've heard on this program twice already, that the east is figuring it out, you know, and having a credible currency. again, it goes back to the petro dollar, and the financial ization of the economy. what is the future of the western economies? peter, you're not old enough to remember with a pound. so the last in status of the world, reserve currency and england went down the tubes even when bankrupt, literally bankrupt in 1976. that's why the world had many reserve currencies throughout history. none of lasted more than a 100150 years. now the u. s. is forcing itself us off the us dollar standard and the world's going to have to find something else. and when you lose

that status better, as england found out, you lose a huge, a huge amount of prosperity, privileges, et cetera. it doesn't happen over night. but anybody who is young today is going to see dar consequences just as the english lost many privileges and status after they started losing out steps that let's go to mitch in london. you wanted to react to what jim was saying there. go ahead mit. yeah. as i was just saying that unfortunately, we've got as a perfect storm set up, because we're already about to hit head into a recession, you've got the federal reserve. it's still doing unprecedented quantitative easing by buying a $120000000000.00 worth of assets a month. so in that stops the, the parties over when that stops, and i think the stock market's gonna collapse. and i think every asset class is gonna correct. so the people who are postured appropriately going into this next

decline will be the ones who are very successful and those are over leveraged are going to get slaughter and how bad it gets depends upon the availability of energy and food stock. i see this can get very, very bad very quickly because inflation in the u. s. right now is around 17 percent . when you, when you use the 1980s basic right to calculate it to him, he wanted to jump in real quick before i go to pi, a want to say with this, this is a show about sanction. these sanctions rushes and americans are pushing more and more asian countries together. get out a globe. peter, you push 3bb would be people together. that's going to have a powerful effect on all of us down the road. and that's one of the things that the sanctions are doing. another reason sanction should be done away with, always throughout history. you know, pie is go back to los angeles here. and so again kind of where is this going here? i mean, from what all of you said here there's,

i see no silver lining whatsoever. i mean, i, i don't know what asset you said we should all be owning right now, because it looks like there's no escape. go ahead in los angeles a because this was not just a rush to judgment or to action on february 24th. and because there you're asian block and partners had done their homework well enough in advance. dotting every i crossing every t a anticipating every thing thrown at them fiscally and otherwise. ah, there will be, i reiterate a re, it's already happening, ricocheting effect back against western institutions. and a neo conservatives in charge of policy between london, washington, new york, brussels and elsewhere. ah, that is the foremost a pressure point and point of danger is because there rabid cheryl and very unpredictable. they want everyone to know that. and they're willing to pull out all the stops in, in order to try. i lie with i got a we,

we have 15 seconds. this sounds like a form of suicide. to me. am i wrong? there's always an opportunity where wherever there is anything going on, there's an opportunity. you've got to look for the silver lining in every dark cloud. people need to be optimistic, but you need to have cooler heads, prevail in a situation like we have today. yes, glen should be escalating, we don't, we don't have cooler heads. they're not prevailing. that's for sure. here. that's all the time we have for this very pessimistic edition of the program. many thanks with my guests in singapore, london, and in los angeles. and thanks to our viewers for watching us here, r t c, an ex library member process rules. ah ah, you must understand the lead to large some kind of democracy in

a little group in a all fresh was bottled water. a oh, crazy joe biden says those are w m d f dot imminent in the ukraine. well, he would know, of course, because pulse flags are an american speciality, one of the last remaining american specialities all the way from the gulf of tonkin in vietnam through the iraq war all the way to syria. the stars and stripes

are done false black, and then the weak, where mr and mrs. julie and i said, we're finally able to get married or be in reduced circumstances. we look out what the future holds for the new happy couple. it's all coming up on this, but nick, to speak with ah

ah, done. he has to public forces claim to taking control of a district in central. mario paul and the evacuation of civilians is underway or correspondent with people who would trust in the war tone. city now get think you monetary nate are out in the outskirts of our evil song. a lot of these people have lost their homes. they spend the last couple of weeks hiding in the basement under sharing mass rally we across europe over.