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tv   Keiser Report  RT  October 12, 2021 11:30am-12:01pm EDT

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i think you're talking about george soros is his portfolio. well, certainly his theories on reflex 70 because we're gonna talk about this because i think for me it helps explain the situation out of china regarding ever grand, the largest property developer in the world. well, certainly the one with the largest debt, $300000000.00 in debt gone horribly wrong here is from investor pedia, understanding reflex, 70 reflex, 70 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
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illustration of the theory, in his view, rising home prices induced banks to increase their home mortgage lending and in turn increased 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 i was taken from george services, classic book, the alchemy of finance. if i, if memory serves which i read would have 1st name 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 sub conscious mine and is able to dig into the dream
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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 dis, equal librium or price dislocation. this idea of a efficient market theory, fisher market hypothesis is complete hope 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 and 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 at predicting the past. right, so this is a misunderstood point. i think people,
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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 and 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 closed. 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 west the cache is where it went to. nevertheless,
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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 if you're looking at the outside from the g o, 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 they think that's the reality of how it all happened. like that's way to the middle class 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 testify to ever grand debacle. the property giant borrowed heavily to develop in out of the way places like lou on. so 1st of all,
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they had to build an ad away places because shanghai and beijing are tightly controlled in terms of the actual land available for property developers. whereas the secondary sitters cities, companies like evergreen, which was 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 the 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 what 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 the chinese version of the game monopoly or are quite different actually just open the board,
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put 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 about these other economies like the american economy or the british economy, where there is diversification, there is a technology space that is 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 1989 and japan and tokyo, that was
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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 and 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 the 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 let for themselves up,
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and that's away 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, the 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 were 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 emits a d. dollarization globally emits
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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 across 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 happen. and the housing bubble of 2005, 67,
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that popped in cost of 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 bail 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's only so many pounds of trash can fit into a 5 pound bag of trash and the stock more than 5 pounds. and it just hit the physical women's. it's, it's a tilt til game over this thing is the suckers are going to happen in a way, you know, think oil is easier to sell than something that's real. reality is harder to sell
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than the fiction. because you can make up stuff with the fiction. if, 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 has 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 who are in $3000.00, right. we saw the exact same thing in the sub prime crisis in america who had no income or $3000.00. the earned income were being given $5670000.00 mortgages, with the hope that they get bailed out in america. they did belma. john paul saying, hank paul, excuse me, and timothy gardener and ben bernanke, he just wrote a multi $1000000.00 check to bail out. jamie diamond they are,
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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 when we come back much more coming your way. ah, ah, [000:00:00;00] ah, [000:00:00;00]
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a oh. oh, oh. oh oh oh i ah, when i see black marriage i see part of my so when i was growing young black america spoke to me when white australia did not. those who say black
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lives matter is a movement we are importing from america. know nothing of who we are. i lived in a world where white lives mattered. and i was not white. like ms. newman and i wasn't known from black america. i learned how to speak back to whiteness. aboriginal people here are more, every die were out. wanted them now will that the police were out war with she states, i'm scared that more children are going to grow up in the country that think says no racism, but they're more likely to end up in the criminal justice system. then they're all the feller friends in daycare ah, well,
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go back to the kaiser report. i max kaiser, i'm out of turn to craig, m k f t 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 boy and back. but yeah. why don't bowl i it's, it's been a heck of a year in the precious metals that's for sure and that everything that we thought with dr. price 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
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banks, and they have for every ounce of gold to 50000 ounces of paper gold. they don't want the price to go higher. they're going to enter 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, know that that market in correction for price is not going to last. i mean, it's loud k minus last 45 years since 975 when 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. i mean, it's kind of like this battle. see the trillion dollar platinum going right. just another step along hasn't losing confidence in t r in eventually, and then all the sudden, but i want go too. and at that point,
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the price is going to be $1750.00 announced and so on both and you know, for their specific reasons and then wait for this all to play out. talking about this of 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. busy in the constitution that allows this fraud to take place. but why not just conjure up a 30 trillion dollar platinum going 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 it. 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 fuzzy, had academics and bureaucrats the think tanks. they all exist in this kind of closed off world. you know where everything, yes, like theoretical physics,
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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 i, there's restrictions, you can't, i mean the whole system as 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, hey, this is a trillion dollars. i mean that is a fatal blow to the confidence of god. i wish he'd try it max, i, i think you'd be remark, hilarious. to watch the aftermath, but she's, i was on twitter real 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 then? yeah, go for it. let's see what happens. the only way could come up with
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a case where the site work is that the m encroaching surveillance day becomes so pervasive that we effectively have the state not only controlling the fee money supply, but also getting involved in price pricing of the if you know price 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 or something because the, nobody could dissent, nobody rebel because otherwise you would be executed. how about saw america? is this the course americans i'm like, here's a trillion dollar coin it's, it's literally the biggest joke ever and economics and bloomberg isn't on it. but if you dissent, you going 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. look at the central banks are desperately rushing to cook up the central bank, digital currencies. i mean that's,
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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 like to have something tangible because they can eliminate cash and make it, you know, your ability to transact things, buy and sell things or, or own a business and trade with others. if they can control that medium or exchange, sure they just zeros and ones. they can take it all away from you in a keystroke. and so i don't know, i think this is all a sign of where we are at 2021. this is not even a creeping authoritarian or 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, we finally got full. now. this is the cultural revolution. there's no descent every, it must be lock step with the social agenda socialism already so now in $971.00,
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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 didn't largest ever on record. but that seems to be more tangible. what are your thoughts? i mean, it's just all parts symptoms the same problem. you know, it on my side 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 and 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 and 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 you any more these crazy ideas like this trillion dollar coin all in an
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attempt to keep the plates spinning in this place, like i said are, are mainly just confidence, you know, confidence that, you know, there's going be some value in this currency tomorrow or next week. and a lot of this, again, matt, i'm sorry to kind of go off on a tangent, but 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 that fails that's. that's when you get full buy more, right. even the charge of the, of the mark in the weimar republic. yeah. got worse. and inflation got worse and evaluation currently got worse, and then just those articles 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,
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it by did 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, 0, one offs, you know, lumber, iron, or steel and copper and natural gas. crude oil. is it 7 or 8 your highs? i mean, these are all a function of the central bank policies. all of this cash has been created around the world, not just me well 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 cold in craziness was always going to be stagflation were never going to be get back to where we were economically and 1819. at the same time. inflation was about to take over and that's exactly where we're headed out signs of that are everywhere. and that's,
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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, it's a boy, it's 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 end of the sound money that i own. and yeah, the price fluctuating would be quicker to $40000.00 couple, which 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 it is all playing out stacked last. and of course, back in the seventy's when nixon did close the gold window. and you had an attempt to pay for the vietnam war by mass of money printing cause
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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 i'm what he said. we're all keynesian now. knock. 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 next felony in keynesian 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 happened. l. salvatore and then the very day between all 10 percent. we think that was coincidence. max. i mean the bankers are going to fight is every, you know, everything everywhere they can just to give you the updated numbers. now they all, salvador, $30.00 per chiva wallet. air drop is now all in profit. and the amount of people
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adding to those accounts in el salvador is greater than what's being spent. so i'll, salvador is becoming a hyper bitcoin and ization 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, but 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 a coin use in the place, a goal. you know that you're providing a sound backing to your currency. our elation sound alternative. so more power to my father. i just what i can, what i'm very much concerned with is the risks around the globe. the energy prices that you mentioned, macs are going to be a real problem all winter long, especially in europe, where they live out of russian natural gas. the, 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
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a book and 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. critically, europe really around the plant is energy press you so high. and again, that all comes back to the seat of the central bankers, the politicians, and that comes fraught with danger. ah geopolitically, that all is stop. and i like where we're going, we're de 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. 5 correct. being on the cars report, my pleasure. good. seeing you back. all right, that's gonna do it for this additional dekaiser report with may max kaiser and stacy herbrich want to thank our guys, craig, happy of the gf battles report until next time bio ah, ah
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ah, ah, ah, ah, [000:00:00;00] ah, ah ah, ah, it's open ethical, most basic what price you, i believe go, he did, who bought, i bought a dial to them all a couple of these on your weight, but i know from politicians to athletes and movies don't to musicals, does it seems every big need in the world has been here less yoga bismark office
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goes to school. ah, wish them wasn't when you get the go for anything. ashwood brooklyn was let's give me a glover new school. but use you? said basil makes dreams come true. but every one who falls in love with a luke with these people learn from their own experience, how vulnerable of business is to the bank. so you push my business over the age, pushes me right to the bankruptcy. now i realize we will group. this isn't just the back. it may be involved in this is the concept. see,
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firms is the lawyers. these people have got want on their stories at a walk kind of whistle blower. tell people's marriages have broken up. it lost their family homes. it is spectacularly devastating. for people's lives, they have committed suicide, but left behind north, the explicitly state that it was the constant intimidation and billing by buying coffee sauce that late them to i took the spy, this obscene these people up, nor saw a case of double standards. one of germany's most read newspapers build leaps to the defense of a covered discussion panel whose content was removed by youtube, but previously that same newspaper mercilessly patched r t german ortiz, german news service, as it struggled with a similar issue with you to a u. k. committee report says the government botched its response to the coven pandemic,

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