RUSH TRANSCRIPT Hilary thank ░░░░░░░░ very much we ll ░░░░░░░░ to you real soon ░░░░░░░░ is a little bit ░░░░░░░░ calm of course after ░░░░░░░░ boj sent that message ░░░░░░░░ the market is getting ░░░░░░░░ little bit aptcy again ░░░░░░░░ again here It underscores ░░░░░░░░ vix I want to ░░░░░░░░ about what the vix ░░░░░░░░ showed us So we ░░░░░░░░ about this the vix ░░░░░░░░ fear index You want ░░░░░░░░ see how important the ░░░░░░░░ market is These are ░░░░░░░░ in the vix in ░░░░░░░░ years Ukraine invasions big ░░░░░░░░ U S banking crisis ░░░░░░░░ spike Hamas attack big ░░░░░░░░ Boj changing the way ░░░░░░░░ do business rocket spike ░░░░░░░░ of record breaking spike ░░░░░░░░ that is why one ░░░░░░░░ the reasons because Japan ░░░░░░░░ a is a what ░░░░░░░░ call a net international ░░░░░░░░ right They own positions ░░░░░░░░ around the world The ░░░░░░░░ happens to be in ░░░░░░░░ U S Out of ░░░░░░░░ trillion yen one trillion ░░░░░░░░ in the United States ░░░░░░░░ if they start to ░░░░░░░░ money out of our ░░░░░░░░ out of their investments ░░░░░░░░ it is going to ░░░░░░░░ us That is why ░░░░░░░░ unraveling of the so ░░░░░░░░ carry trade hit our ░░░░░░░░ really really hard I ░░░░░░░░ to bring in a ░░░░░░░░ who kind of knows ░░░░░░░░ stuff here Daniel lacalle ░░░░░░░░ have some of your ░░░░░░░░ up here Life in ░░░░░░░░ financial markets freedom or ░░░░░░░░ some of the other ░░░░░░░░ and I just want ░░░░░░░░ talk about this bank ░░░░░░░░ Japan thing You put ░░░░░░░░ a very compelling tweet ░░░░░░░░ still don t think ░░░░░░░░ audience understands It is ░░░░░░░░ complicated It is also ░░░░░░░░ of weird that Japan ░░░░░░░░ of Japan would have ░░░░░░░░ much influence on our ░░░░░░░░ and our stock market ░░░░░░░░ s talk about this ░░░░░░░░ outlined how we got ░░░░░░░░ In the beginning the ░░░░░░░░ of Japan started printing ░░░░░░░░ amounts of money Absolutely ░░░░░░░░ starts printing a lot ░░░░░░░░ money Charles Then it ░░░░░░░░ the largest holder of ░░░░░░░░ in Japan creating a ░░░░░░░░ bubble that investors feel ░░░░░░░░ going to be a ░░░░░░░░ bet they re full ░░░░░░░░ lot of investors are ░░░░░░░░ to start taking bets ░░░░░░░░ our finance with cheap ░░░░░░░░ in very low rate ░░░░░░░░ and ultimately they re ░░░░░░░░ risk and risk builds ░░░░░░░░ but happens very fast ░░░░░░░░ right And what happened ░░░░░░░░ that after printing so ░░░░░░░░ money the bank of ░░░░░░░░ found itself with a ░░░░░░░░ that was at the ░░░░░░░░ level in 40 years ░░░░░░░░ it decided to intervene ░░░░░░░░ the market It put ░░░░░░░░ than 30 billion to ░░░░░░░░ of stablize the yen ░░░░░░░░ by doing that it ░░░░░░░░ its own carry trade ░░░░░░░░ the central bank of ░░░░░░░░ created its own bubble ░░░░░░░░ burst it Charles right ░░░░░░░░ led the entire market ░░░░░░░░ it Charles so let ░░░░░░░░ I put up the ░░░░░░░░ here right This is ░░░░░░░░ bank of Japan Their ░░░░░░░░ folks This is their ░░░░░░░░ percentage of etfs which ░░░░░░░░ stock right I mean ░░░░░░░░ bank our central bank ░░░░░░░░ t own stock To ░░░░░░░░ s point it sort ░░░░░░░░ has been coming down ░░░░░░░░ lately Of course the ░░░░░░░░ that hurt their markets ░░░░░░░░ our markets They panicked ░░░░░░░░ the panic Overnight they ░░░░░░░░ we ll goring to ░░░░░░░░ cool The yen falls ░░░░░░░░ 40 year lows The ░░░░░░░░ of Japan ironically blames ░░░░░░░░ aren t they inducing ░░░░░░░░ buying nvidia buying U ░░░░░░░░ treasurys aren t they ░░░░░░░░ all this speculation and ░░░░░░░░ does it mean for ░░░░░░░░ own Federal Reserve seems ░░░░░░░░ be in a sim ░░░░░░░░ valley lar with regard ░░░░░░░░ the next move It ░░░░░░░░ a lot Who is ░░░░░░░░ bank of Japan has ░░░░░░░░ with the money they ░░░░░░░░ in their own economy ░░░░░░░░ the stock market leading ░░░░░░░░ higher and at the ░░░░░░░░ time creating the incentive ░░░░░░░░ investors to take a ░░░░░░░░ more risk Now what ░░░░░░░░ the problem for the ░░░░░░░░ Reserve here The problem ░░░░░░░░ the Federal Reserve is ░░░░░░░░ this enormous carry trade ░░░░░░░░ in the other side ░░░░░░░░ the spectrum is affecting ░░░░░░░░ very significantly its holdings ░░░░░░░░ right Of treasurys and ░░░░░░░░ holdings of mortgage backed ░░░░░░░░ If the Japanese start ░░░░░░░░ mortgage backed securities then ░░░░░░░░ is going to be ░░░░░░░░ Charles by the way ░░░░░░░░ love how you ended ░░░░░░░░ you think this is ░░░░░░░░ markets I don t ░░░░░░░░ the free market ship ░░░░░░░░ sailed any way on ░░░░░░░░ of Pacific I love ░░░░░░░░ way you explained it ░░░░░░░░ is complicated but obviously ░░░░░░░░ is a huge a ░░░░░░░░ issue Thanks a lot ░░░░░░░░ All right Charles Charles ░░░░░░░░ a look at this ░░░░░░░░ is super micro that ░░░░░░░░ the chart overnight okay ░░░░░░░░ is the kind of ░░░░░░░░ you might take I ░░░░░░░░ t know years for ░░░░░░░░ stock to make that ░░░░░░░░ of move How about ░░░░░░░░ happened in minutes Reminds ░░░░░░░░ of the recent outer ░░░░░░░░ movies Beth kindig to ░░░░░░░░ it all down We ░░░░░░░░ talking about the gyrational ░░░░░░░░ moves that defy logic ░░░░░░░░ How many By now ░░░░░░░░ Must be 23 years, four