Transcripts For RT Keiser Report 20240712

A tiger by the tail here i think were in the midst now pending of the torch from the u. S. To china the through saturday strap is upon us. It just gets more and more evidence coming in stacy well of course we were also well ahead by a decade of everybody and terms of the j. P. Morgan raking the Precious Metals markets that happened to be also warned about to Goldman Sachs and their crime spree and of course that basically over the past few years theyve paid 5000000000 in fines they paid another 2000000000 this past week for their dodgy dealings over in asia and yet they didnt face any jail time now you know because of that crime wave that weve been focusing on and looking at because their markets finance and scandal you know the feds Balance Sheet they now own 22 percent of all marketable securities which is from 13 percent last september 2019 so the feds Balance Sheet is having to expand as the fraud expands and the fraud cant shrink because you cant taper a ponzi right exactly right that the fraud has been going exponential with Goldman Sachs j. P. Morgan and all the banks. This fed has been soaking up all the bad debt that had they kept on their Balance Sheet these banks would have had to declare insolvency. And as a result america is now losing out in the global geo political race to china i think the. A direct connection its a direct connection and now were at a stage where frankly we also broke that point on a dollar on the show you know resurrect the point now in history where the central bank is kim la bella out itself if its the only boat in the water in other words america sprung a leak its sinking im geopolitical stage to china and to bail itself out its its trying to. You know shovel the water out of the boat and then they put it back into the central bank so theyre there doing this thats how theyre bailing themselves out and of course they are sinking again weve talked about this in previous episodes its just an inevitable thing its not like if it were france who are the empire right now they would be doing the same thing if it were brazil they would be doing the same thing this is the inevitability and what were telling you is a spare pair for such inevitabilities this is what happens this is why you know the citys trap is when a rising power always ends up in conflict with a shrinking power and we hit that moment in like 2 years ago when it was clear that huawei and the chinese telecoms giant was way better and faster and better you know their products was a cheaper and better than any product in the west in terms of technology so they were beating us and technology so i want to look at one of the former Biggest Tech Companies in the United States and how we its not like were saying its because thats a good guy or thats the bad guy these are choices that were made this is these are choices that apparently get made throughout history because thats why you know empires always collapse the same way they always make the same sort of choices over the last 20 years i. B. M. Has bought back 136000000000. 00 of it stopped its current market cap is 111000000000. 00 and you can see from their banks of when they bought back a huge amount. In any one given year and imagine if they had just allocated back in 2014 or 2012 you know a 1000000000. 00 of it to their Corporate Treasury into bitcoin would now be worth 300000000000 not 111000000000 all right this is why stock buybacks used to be illegal because the companies is committing countable ism on itself and instead of putting money to work to develop markets develop new Products Research new products theyre just manipulating earnings so that the executives get big payouts and dirks tracting wealth from the company extracting wealth from shareholders theres a clear conflict of interest and this is what a lot of companies are doing apple is doing it by the hundreds of billions of dollars and other companies are buying back their own stock micro strategy under Michael Saylor said you know what were not going to buy back our own stock were going to put our cash on our Balance Sheet into bitcoin so he broke from the pack because he realized he doesnt want to be like i. B. M. He doesnt want to waste all of his cash on stock buybacks and see the stock drop and this is fortunately unlike bailing themselves out by buying their own stock again theyre trying to this is sinking boat i. P. M. So theyre bailing out their bad company by putting the water putting it back on the Balance Sheet and its not working and of course thats kind of mirroring what the fed is doing its essentially buying back the stock of america and hollowing out rather than investing and that is buying all the old bad debts of these same Companies Like i. B. M. Its putting it on to their Balance Sheet for no good like its not going towards any manufacturing in the United States remember were 10 months into this pandemic and we still were still an even like mess the fed is like a giant pawnshop you know people take things to the point when they get cash for a nation come back you know buy it some day later you know in all these companies that have gone to the fed to buy their stock from them to get cash immediate cash to give themselves a huge spending spree and credit spree and executive bonuses. There by the time they go back to the pawn shop the values drop considerably and anytime you have all of your major corporations going to the pawn shop for cash thats a bad signal its a bad sign because speaking of like going to the pawn shop and buying back your own stock and making no economic sense other than decline is this is an interesting tweet and then some data following it china to us west coast shipping is on fire container slots sell out risking holiday ship again no response yet for Trans Pacific container shipping demand frenzy so this is the shipping of goods from china to the west coast of america when we had 12 100. 00 stimulus checks we had 600. 00 extra week on enhanced Unemployment Benefits 75 percent of americans were apparently making more money than theyve ever had well the ships are 100 percent full the containers are 100 percent full you cant get a container built you cant pick up a ship from the spot market the whole container shipping cycle is at absolutely full post exclaimed jeremy nixon c. E. O. Of Ocean Network express the worlds 6th largest container line so were sending were taking this money sending it to china they apparently are still willing to accept an exchange for all the work they do to make these products and send it to us but how do we get that to stay here how do you get some of it to stay in the United States if the whole you know that a u. S. Corporations like i. B. M. Are just hollowing out their company and so you have to go to china to get all your goods right so china is experiencing a the shaped recovery you know kobe had like a meteorite it planet earth boom and some areas of the earth you know that benefit because they that were not hit by the media or in some got hit by the media or right so china did not get hit by the covert media or we can go into the details about their response except or i mean im im just stoically you read remarking on the facts of the key. Im not make a judgment here and as a result they are ship and stuff to the west coast in record amount and of course the trade imbalance is going to get up wide open and this is the beginning of the china century yeah i mean all that data looks like perhaps we could turn around who knows. A lot of this is set in motion by joe biden and the polls suggest hes going to win so i dont know like what hell do to be able to stop it especially you know at this point in his career but some market watchers thought volumes and rates would relent in the wake of the china golden week holiday in early october it hasnt happened yet the transpacific market is still at its peak according to the fritos baltic daily index spot rates from china to the west coast were at 3847. 00 per 40 foot equivalent unit f e u on friday of last week theyve hovered around the same stratospheric level since the last week of september which is triple last years rates so again you know its hard to read all of this data because there are so mets conflicting data and that i think tends to happen as you know you know one ordered disintegrates and another is rising its hard to tell whats going on i mean tripling the rates of 21000. 00 at the same time you would think you know its boom time in the economy or maybe its just like we just have no manufacturing at all so everything must be shipped here now versus last year right well one you know Historical Data point to take a look i would be japan in the mid 1980 s. Writes a panel is going to take over the world the u. S. Is going to fall back and be the 2nd coming of the 2nd tier countries japan is going to rule the world then because of the internet was invented and proliferated it uniquely satisfied the entrepreneurial instincts of the United States and gave us. Amazon google apple right and then the u. S. Took off again so that carried us for 101520 years but now u. K. Down over asian country theyre in a position to to dominate in the u. S. Though because the police have political no no social cohesion is the social cohesion risk is too great right theyve got too much infighting too many sprout is going on i dont think theres going to be an internet this time to save it for a member back in 20102011 we were a car covering that social cohesion and x. That the economist magazine and come up with and they were talking about all the arab spring and certainly you know weve had here similar bizarre situations happening in the media space for home go too much into them but here you know so shipping all or all the goods are coming this way nothings going that way and domestically heres another interesting story kind of feeds into all this buying back our own stock in the disintegration of what happens in the pandemic nobody is talking about it in the Mainstream Media but commercial Mortgage Backed securities traders say 90. 00 to 120. 00 they have delinquencies on commercial real estate loans surging to 30000000000. 00 up from 4000000000. 00 in june as pandemic lockdowns new work rules crush prices an estimated 40000000000. 00 and see m. P. s are in default hardest hit are bonds with exposures to hotels theres you know a rent holiday all over the world then when these are going to have to disintegrate or go bankrupt at one point obviously its going to be transferred for the fed to the feds Balance Sheet because i dont see them actually letting the commercial the holders of the you know mostly in Pension Funds and things like that passive Investors Holding the c. And b. S. I dont think theyre going to let them go bust so were in that cycle that is a doom right well before the covert hit all countries around the world are trapped in a fear. Game theory remember china and the us had a symbiotic relationship and china had all the manufacturing capacity in the jobs but the u. S. Was the consume. And had great credit and could go into debt and these 2 were in this joyous downs but postcode it now its a breakdown and china is breaking away from the pack and its clearly establishing itself as not needing the us anymore in terms of its ambitions for Global Economic dominance and the u. S. With all of these bad debts now in the commercial real estate Residential Real Estate that means that the central bank is going to have to expand their Balance Sheet by another lets call it 15 to 20 trillion. And so that will at some point cause confidence in the u. S. Dollar to evaporate then you have hyperinflation then you have a currency collapse. And then and all that gold that china has and other countries will be a huge factor. This week to point out of course that theyre looking for Bretton Woods to. Well speaking of 2 part 2 coming up right after the break so dont go away. The world is driven by shaped by. Thinks. We. Ask. So what weve got to do is identify the threats that we have its crazy. Let it be an arms race. Period dramatic developments only really. I dont see how that strategy will be successful very critical time to sit down and talk. Welcome back to the kaiser report imax keyser time now to go to andy had struck me as a wealth manager a hard money into is yes and hes the author of the blazingly brilliant book why buy bitcoin n. D. Welcome to the kaiser report thanks for having me max great to be on with you all right i had a chance to be on with you on a call on another podcast recently and you know youre in the Wealth Management business even talking to people about big point for a while many heirs have got a book out their year experiencing what people like Michael Saylor who i is just now experiencing is talking to other people about this asset class and here are a pretty well versed in it and let me ask you firstly about whats happening now in this in this market you know back in 2017 we saw the foam 0 fer of missing out from the Retail Sector really the mom and pops out the small the fringe players the internet crazy people they drove it up to 20000 we had a big correction and now looks like were in the midst of what you might call corporate fear of missing out corporate famo do you agree where is this going andy yeah i agree with you max the corporate photodynamic caught a lot of people by surprise myself you know included to be honest i mean Michael Saylor came right over the top as you mentioned you know i did now system is set up and how he 1st purchased well 1st bought because then purchased shares to get people that werent interested. In this Shareholder Base and then purchase more becoming and then of course we saw jack and the crew at square follow through so yeah for sure the clock is ticking me of the starting gun has been fired by a sailor and you have to believe there will be others and so of course as you talked about it in the past theres all these various. Sort of independent adoption with you know the retail which comes and goes and waits which means new hard liners you know theres the Hedge Fund Managers and Family Offices and theres the corporates and eventually you know governments and theyre all on their own time scales but i definitely think that the starting gun has been fired for the corporates and i do expect that more companies are going to buy that coin and put it on the Balance Sheet for sure bitcoin is full of ironies is full of paradox paradoxes i guess is the plural of paradox and you know in this case back going back 220112012 when i stacey and i are 1st getting into bitcoin people were really looking at it as for payments and thinking about in terms of competing with pay pal and better bit pay was one of the very 1st companies out there and theres going to be the pay pal of bitcoin but here we are in 2020 and we find out actually that corporations not think about this in terms of payments theyre thinking about it in terms of assets on the Balance Sheet as a way of a store of value and thats like a complete twist to the narrative that nobody saw it coming really and now were in this period as Michael Saylor of micro strategy who put 425000000000 of the companys cash into big quite recently pointed out on another podcast there are about 10000 billionaires in the world which include individuals and corporations and theyre all sitting on this i see calls at the melting ice cube that has cash in a world where every central bank in the world has said were trying to deceive were trying to inflate away the value of that cast by a least 2 percent here of course if you look at the numbers its a lot higher than that and the market for this is staggering because a 2210000000000. 00 asset versus literally 100. 00 trillion dollars available to try to find its way in that because youre a wealth manager where does that take us yeah and this is where i try to with my clients. Max to just simplify the story and right now thats not difficult to do you mentioned that earlier in its evolution or its adoption because one was you know thought to be useful for payments and you know in my book i lay out several sort of cite cases or reasons to a big point but far and away the clear leader in the year 2020 when as you say you know all the all the banks center banks are printing tons of money and inflation is coming the clear narrative is digital gold and its that simple and thats what i tell my clients i mean i talk about hard money assets but you know gold is the leader there because we will take share by the way i happen to think that gold as an investment is probably going to do well in the next few years and thats good news for bitcoin because as you point out as these corporate treasurers and these c. E. O. s figure out that the purchasing power of the dollars and other currencies they have on their Balance Sheets is getting frittered away is getting inflated away theyre going to want to own the hard money asset and bitcoin is the hardest money that ive ever seen given a huge Money Management firm Like Fidelity has come out a statement saying oh you know people should put up the 5 percent of their portfolio into bitcoin ok now they matter theyre up there in the bulge brackets you know their top i think its got to be a trillion or more fidelity theres a few its not really its theres assets under management and thats well over a trillion and then theres the assets that custody including retirement plans right for one k. Plans thats Something Like 6 or 7 trillion i want to say its huge numbers palter jones of course im asking you these money managing questions because thats we share that interest for sure having it myself a background in it so i see somebody like Paul Tudor Jones is you know back from the 1980 s. A was the golden child and call that 987. 00 crass accent or a he calls it the. The source of the race hes a Due Diligence guy you know the hedge funds come in thats another multitrillion dollar market so thought coming up in fact the supply of pick coin coming off the miners on a daily basis 100 percent is gobbled up by these huge buyers more than 100 percent theres actually were developing a situation where there could be a shortage of pick coins in fact for the retail crowd because potentially the big players could buy it directly off miners for a premium is that do you think thats a possibility or retail the Retail Market for pick like a dry up you just cant find it just cant 5 for example i cant i cant buy a fractional piece of a meticulous. You know they pay 460000000. 00 apiece ive got to pony up that money or not i cant buy i cant rip off a piece for a few 1000000. 00 can i is the Retail Market for thats going to dry up potentially but of course you know its that its a 4 year having cycle and its just this mechanistic you know brutally simple system whereby the issuance gets cut and so far every having cycle you know you get you get this fica and then theres some period of some months where it kind of hangs out and then at some point. That demand starts to outweigh the supply and you get the upward move now as to your question about you know is it too late for retail basically on the one hand of course this is the one asset in history at least in modern history that im aware of where retail got the 1st shot at it right where where institutional money was like. But you know its to still money can take time but eventually they figure it out so yeah i agree with you theres going to be institutional buying pressure coming in what that means for price im obviously very bullish and i do think that retail will continue in the next in the next bull market it will just be. The demand that was already there will be additional incremental in my opinion when we you know hit an all time high you know the smart retail folks are stacking their stats right now and theyll continue and then yes as the as the corporates in the other you know its usually players come in though just be that much more buying pressure so its not too late its never too late would be quite right because you put it up next year tell people abided a dollar or they too late it 10. 00 really did it weighed 100. 00 i dont think so all right im going to read to you 9 words and get your reaction here we go the i. M. F. Is calling for a new Bretton Woods i tweeted about this i think this is one of the most ridiculous statements ive ever ive ever heard in my life and and ill tell you why. Bretton woods which occurred in basically the mid 1940 s. After it was clear that the allies and its simply the United States had won world war 2 was a point in time where there was there had been a war there had been a clear victor and it was about constructing a new system in which the victor was dominance and you know most of the world was falling in line with the developed world ok that system is nothing like what we had today right back then the u. S. Was i dont know 40 percent you know close to half a world g. D. P. Europe was in ruins essentially that looks nothing like the world we have today oh and in the last piece with the debt levels right debt as a percent of g. D. P. Both in the us and globally was actually far lower even right after the war right we we know that we know that governments go into debt in order to conduct war in order to finance war and yet even after world war 2 the debt to g. D. P. Ratios were significantly lower then they are today so yeah i think todays world does not look you know hardly at all like what the bretton world the Bretton Woods world did at that time. It might look you know what could actually happen among countries could we see Something Like apply as accord maybe but my expectation is its is its basically just you know financial an arche currency in monetary anarchy everybodys just going to keep printing and i think this notion of a Bretton Woods you know a coord everyone comes to the table and implement some new Monetary System is a complete fantasy and its a harsh oh you know hard to harm movie that people poor people are getting axed a bath or theyre being fed into a wood chipper and then some lucky folks find an escape hatch so here you have a Central Banks they realize they were out of reset like a present woods you know its too much debt we got to go back to the table because were all going to perish. And meanwhile the smart money saying well you know actually were just going to buy bitcoin because its completely outside of your control its on confiscated all its the hardest money ever its better than golf and i mean when you hear the bank of england come out with a statement saying that were going to come out with the big gold because people dont want they want something backed by by the government right there are so clueless its shocking i guess thats to the point you were talking about earlier that its still very early on because considering its at 111212 half 1000 if it gets power with gold or talk and 400000 above right thats exactly right its such its its among the clearest you know investment theses that ive ever seen in my career as you mentioned you know i started my career wall street i worked for hedge fund it worked for private equity fund you know before i did Wealth Management and yeah its the upside is so big and all big point has to do in the next few years is take significant share from bolt as you described i mean it will be great if you know it takes your feet out it will be great if people use it as the Swiss Bank Account in ocket it will be great if there were there are all these new use cases that are built on top of it you know thats all the sort of icing on the cake and thats the longer term story but for the next few years yeah taking market share from gold thats all we need ok well fantastic and it hurts from thanks for thanks for being on the cars report pleasure is mine max thanks for having me all right and thats going to do it for this edition of the kaiser apart with me max kaiser stay here but i want to thank our guest andy edstrom who is the author of love why buy pickle wine its a darn good book. 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