tv Keiser Report RT April 6, 2021 3:30pm-4:00pm EDT
2 hedge funds that collapsed and set in motion what would later few months later 6 months later become the global financial crisis when lehman brothers also collapsed you started to see that again the debt crisis has risen again you might say bill wang of arc of ghosts he in his fund collapsed in a spectacular fashion with a massive margin call up to about $30000000000.00 margin call he received and it looks like he's really impacted not only did like c.b.s. but viacom c.b.s. fall by like 27 percent as all his shares are if i had to be sold off by the counterparty banks but the banks themselves i credit suisse have been head credit suisse warns and pre-market statement of a highly significant hit to its 1st quarter results after it began exiting positions with a large us hedge fund that defaulted on margin calls last week so play this as a tragedy or
a comedy you know that's always the question if i go tragic. that would be one way to go down the tragedy path or i could go down the comedy path either one or those tragic comedy there's a big mix of both if i go down the tragedy path things could get woolly so the 1st time was tragedy we cover that 2008 this time is comedy because it's the 2nd time so if it happens again in the same exact way the same exact manner happens over and over the 1st time our financial system almost the last was back in the ninety's with long term capital management remember them that's when the fed intervene to rescue one single hedge fund here we have the same sort of situation and again just like 2000 and they again member i said the financial crisis has risen again and that is it went through europe because what happened was huge amount of leverage using something called contracts. for difference which are
illegal in the us but are allowed in europe so nevertheless it impacted us markets hugely here are the complex bets at the heart of the unprecedented arc ago linked $30000000000.00 margin call losses that triggered the liquidation of positions approaching 30000000000 in value bring to light complicated financial instruments used by european investors that effectively are banned in the united states but still have spillover effects domestically so called contracts for differences were at the heart of some of the massive wrong way bets made by bill wang's capital management max you know because you used to be an options trader so see f.t.'s are the kind of derivative instrument that allow traders to place a directional bet on the price of a security without actually buying or selling the underlying instrument it works much like a futures contract say an index the buyer on the seller agree on the price of a transaction some time in the future at the end date or earlier if they decide to unwind the position before hand only the difference between the actual on the
agreed price will be settled if the price went up the seller pays the buyer the difference and vice versa so you're able to do this with putting down very very very very very little on the actual bet there are structurally no difference between a contract for difference play and a roulette wheel if the feds are structurally absolutely no difference when i say directional bet ok it's either red or black and that's part of the roulette wheel then you could leverage it almost with infinite leverage because remember money is free. because you got 0 percent interest rates if you're an insider and so that would be a number on the real we all like there were $27.00 and so you're making hundreds of millions of dollars or billions of dollars in the bet they spin the wheel and here's the great thing if if it doesn't come on the color that you wanted to come out or it doesn't come up a number that you didn't want to come up. you get to go to the cashier and they pay
you not only how much you lost back and pass but they give you $10.00 times more and they say you got to go back to the real at will and tried again because you are systemically important to the global economy without wristed of us banking terrorists like you over credit suisse and all these other banks then how will we out in the hamptons it will to buy this yacht next month that systemically important how would we be able to justify the 0 percent interest rates that by definition by provable cause and effect a plus b. equals c. . you know you know when i make that face it usually gets nasty right so i don't know whether to go is tragic. or it's comic they may mean i was just looking at some clips of the movie margin call it's a hollywood movie based on this exact event having been played out now several times it's become pantomime is such a trope now that every 10 years they go through the machinations of this global
financial crisis brought on by regulators brought on by a rogue traders that had a fat finger trade and accidentally triggered a multi 100000000000 dollar margin call. and send in the devil that. there's a villain with a twisted mustache. you know what you won't print this true. and then some mop haired short haired white haired which like janet yellin is trying to down for the congress and are all the while not all of them are really all the homes well * then jay powell pair of those top. poem from the 20th century in order to fill up so little rimmel for goes on like that again and again and again and again well let me intervene max because i do believe that it is continuing as a comedy this time around it is comedy it is hilarious and the reason why is so
much more hilarious this time the 1st time was tragedy back in 2008 in 2009 and the reason was because big queen had not yet spread around the world there was no safe haven for ordinary investors ordinary people to save themselves 4 from this financial system which was corrupt this time around as comedy we could we could laugh saying to them have fun staying poor because we have bitcoin and millions and millions of people around the wall now have big point and you know while these people play their crazy games and the central bank will bail these people out sovereign nations will bail these people out back in 2000 the in 2009 credit suisse got injections from i think was the qatari sovereign wealth fund and the government . so they'll have to be bailed out some suckers taxpayers inflation everybody will pay for these suckers in the fi out world but this time around we have bitcoin and i want to say it like this this con the c.f.d. situation. the market watch article interviews a former f.c.c.
regulator amy lynch who says about them that they are extremely risky is how she characterized the f.t.'s as kind of like being able to go into a naked position she said referring to naked bets where investors use derivatives to gain exposure to an investment without owning the underlying assets so the markets are naked they've expends exposed as having no clothes essentially. right yes former regulator no active regulator no active regulator say that openly they want to warn you about this especially at that sort of level where it's like a major bank like had a swiss they're allowed to get away with these things and they just get to say oops oops sorry our bad we'll save everything will print more money and it all goes away but this time i'm saying it's comedy max i am laughing i'm laughing hard inside i might not be laughing right now i can't see it but i'm laughing so hard inside that i could just watch these people like the car crash like it's just like ok this is
like a clown car crash right it's just like car cars filled with clowns over filled with clowns crashing into each other in that fia banking system which is so corrupt now . it's funny it's also funny when people suggest that because it's going to be regulated and you hear that from academics and talking heads on t.v. all the time like we're going to regulate bickley as if they regulate any market right now that they're not just basically it's pay to play in the regulation field right you have the laws you pay for the rules and we've got over a trillion dollars now to pay any regulator we meet it's not going to be regulated there's no regulation going on now well there is and that is these are legal in europe these. c f t's are legal in europe these people can engage in this it's illegal in america but the bankers in america want these illegal things to be illegal to continue legally in europe so that so that they could destabilize the
system any time they want because every time we see it over and over and over look at the wealth and income gap across america it goes up every single time there's a crisis so it's in their benefit to to there's no event sighing for many years that america outsources this financial deal the galaxy to europe particularly the city of london or have things like infinite react off occasion yet and that has loophole hasn't been closed for the very reason that it needs to be remain open to allow for these fraudulent activities again you know so you have a system that has recovered and recovered i remember on the front page of all the u.s. mainstream newspapers and magazines they were like lloyd blankfein and jamie dimon are heroes and they save the system and their gods and powell and janet yellen and ben bernanke the save the system so we'll see what actually saving the system has meant and is part of that c.f.d.
as part of the explosion in leverage that has happened the mark we know for a fact the actual cottony manufacturing wealth creation has not increased at all since 2000 right so what is this all based on and if you're going to have these hedge funds like market goes collapse and possibly take down the system like how fast will all spiral right because let that guy's leverage of course collapse him he doesn't have to pay any of it his company has a hell still be a billionaire and will be all these banks which will eat the cost but the banks then give it the cost to the regulators the central bank the taxpayers and all that stuff so in the united states. february finra margin debt 15100000000 dollars month on month to $813700000000.00 a new record it's up 69.8 percent from last march's low that s. and p.
500 is up 81 percent during that period all good except it is easy to forget during good times that margin debt cuts both ways we are witnessing live the dreaded side of margin calls the collapse of archytas triggered turmoil on the us markets as the likes of viacom which is a many pension funds across america collapsed by 27 percent as those trades unwound yeah you're right it made us tough at this at this juncture to understand at this a supposed to be how we're supposed to be sadder or laughing you know you know you don't really know it's a cycle drama all right a psycho drama is it's where really funny but also where the tragic at the same time there be the people in charge have given an unlimited credit line to the most psychotic recidivist kleptocrats human history has ever known and day and they're just standing back to see what happens and predictably they're destroying the global economy and driving big client to $500000.00
a calling it's basically this time around the 2021 financial crisis and i will go through 202223 it's the monty python version of the 2008 crisis and because we're all going to be laughing and it's going to seem as ridiculous as any enemy is saying as any monte python sketch i can hardly wait for the next stage has funded blow up and for crying to go up to $250000.00. it's a total. the
in every state in the united states we see a fairy sharp increase in the number of people seeking treatment for addiction to prescription opioids and invented america under the banner of medicine persisted with the pain but instead of trying to wean him off though she just goes after dose after dose after dose and really became his drug dealer soon is to blame patients doctors manufacturers all the governments of. welcome back to the kaiser report imax kaiser time now to return to our conversation with lonsdale part independent bester and prolific twitter matt
lawrence nice to see you again i see america thanks for having me on the show and we've been talking about portfolios and how to position and you've got 2 major things one that you don't have any more bond vigilantes giving any kind of true price discovery to the bond market you know have any gold vigilantes giving any true price discovery to the gold market you have a lot of money printing. big coin of course is reflecting that money printing but hat so how do you physician airpark follow the arrow what's the mix that's a great question mark you know last month has traditionally been a gold sun and that's the world it's a problem. it's only about a dozen i got involved in 2013 my 1st away has grown over time and songwriting it's grown over time i think it really depends on everybody's individual risk profile and preferences. you know as i say gold is enlarge money you know it's
a bear it's a bear or security you can take it with you can hide it and lose it in a boat accident it's not necessarily taxable and you know it's got 5000 years yesterday and everybody knows it's money. going obviously this is. your alternative to gold in terms of transfer ability storage costs etc but it's emerging and course as a result it's emerging that's also why it's not just fantastic performances just crossed gold in terms of press performance i do as a role for both and everybody works only oh actually it's got interesting you almost got to look at those the old you know bond stocks model where you know gold is maybe gold is maybe you're you know. if you look at historically since 2011 percent a year which compared to today's. is pretty darn good as measured and in reality stayed the same yes gone down and then declined as your growth stock bank which is
grabbing share from gold but you know as with many growth stocks it has a lot of love and so i think people need to figure out what their wrists profile is like i've often said the only wrong i'll chase the big question is 0 you know obviously single digit percentages are going to make much of an impact but i certainly understand why people don't want to be 100 percent you know i would want to be a 100 percent i mean again you know because i can win in the long run but let's say we have this run up and you know the government says themselves hey you know we are a lot of citizens getting filthy rich off the notion that the currency is failing and we don't want the currency to fail we're going to just float the idea of a 90 percent tax on profits just float it not even get it through just float it. think of the impact on the big question price you know it might not be good right and so you know because of that outside risk i want to be on a percentage point you know i want to have diversity between the 2 s.s.
and 2021 is the 50th anniversary of richard nixon taking the u.s. dollar off the gold standard looking back now lawrence what do you think of been the positive and negative consequences of this to says and what has meant at the time to be temporary how to place out the mess to clean internationally there are a big gold man you know this whole story very well what do you think it was i was there a horrible decision i'm scratching i mean you know if you look at the wealth inequality the you know the wars that it's funded you know i mean it was it was partly done as a result of the vietnam war and i think it's just tragic the implications for society i mean that when you take the 1000000 signing with c.e.o. hollowing out the manufacturing base in the midwest creating you know a lot of. the spare as they call them no to drugs and so. commit suicide i mean you know it's a me so many of the ills that we face in our society are a function of not having some money and you know not having some money i don't
believe it's an ethical issue and there are those who are. you know the whole notion that some people can benefit from look until you know exactly that it steals from the average human beings just trying to live their life work and save money you know this is a as you said it's a tax it's a tax that nobody voted for him it's been horrible for the country and you know it's coming in my opinion it's coming to its own now you know it's going to offer a long time you know we're getting there and you know i i hope and pray that the white will come sooner rather than later because no of our lives are going to and that will return to a some money standard because the right part of this entire story is that on the other side returning to sound money i think society is a whole lot better than it does right now you know as it does. as you pointed out washington is corrupt if you take away their ability to print money you control it running us and washington's going to disappear we don't need. to become pretty obvious i think now on the other side of this some money revolution right you
mentioned the death of despair last year 70000 opiate related deaths in america and those were entirely by design so we had more deaths than we suffered in vietnam war and. you know meanwhile the us is dictating to foreign countries a certain agenda about bringing democracy and freedom to those countries under some kind of washington consensus or u.s. foreign policy but if the us foreign policy were to be applied to america itself wouldn't it make sense for america to bomb itself. yet really were max i mean it's you know we we've been you know look i love america and i love the ideals of versailles i love the founding documents we strayed a long ways away from what was written in those documents i mean that's true says the old soldier as the only acceptable forms of money what happened there right and
you know the vietnam war you know millions of people kill for you know it domino theory i mean it's tragic some of the things this country has done and it's a long list which is not to say that there are many great people in great benefits of this country but you know honestly some of the people that you know that rule and lead the military industrial complex you know i want instead of time i'm like yes it's not a nice group of folks now over the past few years america seen a drop in life expectancy it's an extraordinary outside of wartime and can you relate directly to the consequences of u.s. dollars global settlement layer you kind of match alluded to this earlier that maybe once the u.s. dollar loses preeminence like the quality of life in american actually. the need to have a trade deficit to maintain that status for example to keep the dollar u.s. dollar is or. isn't what it may be better if the u.s. got out of the global hegemony game with the u.s. dollar maybe lawrence absolutely there's no doubt in my mind the room will look
a lot better when you know the monetary playing field as we have a neutral reserve currency you know we're not exploiting our jobs overseas things are priced directly all way around farmers actually do make a decent living is that right the one thing we all need i mean is the distortion of the restaurants are every good and service in this were 8 created by you know the u.s. monetary policy and the u.s. military industrial of it gemini is is gross and has hurt and it's hurt and show many many many people in my opinion it's just an opinion i could be wrong but i you know based on studying us 3 it's what i've concluded and so you know leslye as i've always said if i'm successful in my investment 0 in my you know i view my remaining last work is to try and restore sound money. to you know to the world because i think it's good you know my hashtags where is there somebody thinks the world and i
really believe i think it's the i think it's the fundamental underpinning of a lot of the problems in our society since most people don't see it it's unfortunate now in the last episode we discussed inflation and how it of course is taxed it's taxation by a different name the other tax free after about is actual taxation so. biden plans a massive tax increases how's that going to play out well he sure does and you know and some people say well that's like goals going down the government's going to get its act together like a plan and it's about a $3000000000.00 increase over 10 years so it's $300000000.00 a year i'm sorry 3 trillion over 10 years so $300000000000.00 a year now you know we're running deficits that were last year require one year for that one this year i got leave for maybe. you know if you really think that a $300000000.00 or $1000000000.00 tax increase is going to start to close the
government you know no it's just not now you know my slow down the economy and obviously you know be satisfied as a resident is also the richard bag perhaps some of them well but. to me it's all just noise it doesn't really impact if you look at the numbers it's just not meaningful you know they mean i couldn't believe it wasn't even dry on march 7th back in he came out and said well we might need one in 8 i mean this is just nothing it's never going to happen and so you know and the reason it can't end is because you can't you know it's a positive you have to keep increasing the amount of money shoved into the system or the system collapses i mean that's the that's what all of us in the sound money community see and understand and that's why we placed our best the way we place them you know it's inevitable now the timing is you know the chinese are going to wrong i mean obviously goals and rushing out. but you know i've been doing this
since always i can wait you know if i think anyone in a certain weight chair i say our assistant just walk down and ok yes my dog wants the dogs now this one this one is this is a grow rosy and say well yeah. yeah now i should probably want to go over probably go over the door a letter oh yes i did say i understand isn't a big calling and rosie aren't talking right now that's right no no no no max there's no bigger going phantom a oh i bought my 1st 2 or 300 but i just give up on gold and i just see just all the young people that are 100 percent going you know just keep in mind you know the volatility or even i mean really are not i get it they would be a mark investing if when you said that you are on the verge of tears. but anyway. yeah property prices are up over 10 percent this year wages are up 14 percent thanks to government transfers a new car prices are up over 15 percent right so so you're saying that all those
price like those that are real aren't helping gold but the ponzi mentality in the superstitions out there that somehow the bite administration's going to fix the economy is is dropping the price of all i what kind of oh i know what kind of drugs america is on but obviously that's like a stock going to going to go for a long as at this delusion i don't think so i really don't i don't see how and i think we're very very close to the end of the straw down in gold i'm going to look at all the sentiment indicators which are very good cycles and you know they're just throwing it out right now and by the way they're being you know they're being held by the banks and being held by the b.s. the probie go to new york you know except for such i mean they need to they need say a goal and done it they've done it very well you know they're trying to take the eyes off going to use all of our say something negative about it and so yell and say something negative about another when they leaned on india and said you know i'm
going to ban it so indians are left are we try our policies and out you know they just banned it right and they can still bit crime they just can't ok i gotta go lawrence thanks so much for being on kasa report thanks for having me honest source on and that's going to do it for this edition of. as a reporter with me bags kaiser and stacy herbert want to thank our guest lars. by all. is you'll be a reflection of reality. in a world transformed. what will make you feel safe.
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move show you this look beautiful little the media who looked or a good. muslim also who is dull so we do films to go good. to go to shows look but do you distribute blue. sure it's good to go. to starts to get to needed though it was the little one wished they'd say look it is it's. just not a chance to just meet the mashed old truck stop the president and please introduce washington to. those who have petitions to listen to snoop to come up to new york because that was the girls who were his supporters to your machine station shouldn't be you should cook door for the one who's doing business.
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