So what the h is going on in this market right now, let's talk about tesla, china and sec putin and his rubles, and let's start first of all before all that with the united states, putting out a pr notice saying that they're considering releasing 180 million barrels From the spr now the spr is the strategic petroleum reserve of the united states. It's intended for emergencies, hurricanes wars when you really need oil and you can get it elsewhere. That is not an emergency. Lowering prices does not really qualify as an emergency, but this administration did it before in fact, twice releasing 30 million, releasing 50 million.

So now, they're, basically saying well the first two times this thing has completely failed: all prices didn't drop. So let's do it again. This is like homer simpson level of logic, not to mention the fact that you're really screwing with the risk management, because look beyond the fact that 180 million barrels is going to be the biggest release in the history of the spr. The problem is that the spr is already kind of dwindled down it's right.

Now 568 million barrels, the lowest it's been since 2002, so we're already at the lowest level in the past 20 years of reserves of oil, and now we're going to take one third of that and release it not because of emergency because of a political need to Reduce prices because the plan is, if you have a notice, is to release 180 million battles over six months, which means one million a barrel all the way until midterms. That's a nice coincidence. Isn't it political shenanigans instead of emergencies and that's how you, with the old reserves of the united states? That's great now, look whether you agree or you disagree. The question is: will this thing be effective? Now the political argument, let's say that it's right that it's wrong doesn't matter.

The question is: will losing these reserves will give us lower gas prices in the united states? Now we're talking about one percent of the world's global daily consumption of oil, now, historically speaking, releases of spr oil had impact but very minimal and very short-lived. It's like going on a crazy diet for two weeks. You lose some weight, but then you gain everything back and some in a month. So basically, every time this happens, prices drop like today, but then over the long term, the market prices, and the fact is that the problem was not solved.

This is not a solution. This is a band-aid, so eventually the market prices back in the supply chain, shortages and the prices climb back up and we just lost one third of our reserves. That's great now, i do want to point out the fact that the united states may be doing this. Just for the faith just for the head fake, because look all you need sometimes is for people to think that you're about to do something to get the desired results.

If the u.s is saying hey guys we're going to release so much oil we're going to flood the market with oil, what happens the prices drop if the prices drop, then maybe you don't have to go back and actually do the thing that you just written to Do interesting so if that's a political ploy like a political head, fake sure why not if they actually release it, my goodness anyways, that's my two cents about that! I do want to give you an update about tesla tesla has notified that they're shutting down the factory in shanghai all the way through friday. So the crunch of the end of quarter is pretty much screwed for tesla and it's not going to have a huge impact on their numbers globally annually. But it's not a good thing. It actually kind of chips away the theory that china is not going to go to full lockdowns because they have a way of keeping things going, even in call with restrictions like people sleeping in the factories, bubbles and whatnot.

So if tesla is shutting down, that's not a good sign, but we have to wait and see, because this is just a one week delay, let's wait and see how this develops before we decide now. What's interesting is that putin seems to be losing his game of chicken with the eu. It seems so about. A week ago vladimir putin came out and said, hey dear eu.

We would love to keep selling our gas, but from now on, you're gon na pay us in rubles. Yes, this currency, nobody wants or cares about you're gon na pay us in that currency, and essentially this was uh a shot at the dollar and in the euro. Basically, when you create a demand for a currency to buy commodities or energy, you devalue and weaken the currencies that are no longer used, and i have a whole video about that about how the dollar is the world's reserve currency because of the petrodollars. Now i initially said in multiple times, including on my show, with justin: oh called money talks.

I said that i think it's a game of chicken, because i don't think putin can't afford to with this money as much as the europeans need. The gas to survive. Putin needs their money to survive as well, because the us froze his war chest. So it seems like a very weird game of chicken where no party can afford to lose now.

Surprisingly enough, the dude cracked first, so reports are coming out from russia that putin now offering a compromise after the eu basically said: hey you we're not gon na pay. You on freaking rubles, you crazy. We have a contract, so he could either breach the contract or he could basically back down, and this is exactly what's gone, so he offered the compromise and check out this compromise. Hey you pass in euros right, passing euros and then, when we get the money we will convert it to rubles for you, so the europeans are like looking at each other like did he? What did she just offer? What sure go right ahead? Convert it to rubles.

So basically, europeans will pay to russian bank and euros, and the russian bank will convert it to rubles for them and will purchase the commodities. I mean it's a it's a bluff that was called by the eu, and this compromise is probably one of the funniest. I've heard now before i sign out very important, update gary gensler, the scc both came out and let everybody know hey you better cool these things with china, i mean we ain't got no deal yet we're still in the position where chinese companies will be delisted at The end of 2020, 21 20, i think 2023, so it's three years and the law was implemented at the end of 2020. So i'm thinking three years end of 2023, so he basically said hey nothing changed! We're happy to see that the chinese government is willing to invest time and resources and energy into working out this problem, but so far, there's no progress and until we get to review and audit these chinese companies they're going to get it delisted, i mean we're not Going to budge on this at all, so he's basically saying hey this whole thing from china is just a pr stunt.

We haven't seen anything on the ground, yet you better be careful with these things, because the chinese have started this idea of basically pumping their stocks by issuing these pr notices. That basically mean nothing. I just want to kind of point out that the last time that we heard this they basically said hey, we promise to stop being evil real soon and we will work with the u.s to find a way to resolve this compliance problem. Now, look, i don't buy any of this chinese propaganda and i don't take the award for it because they've proven again and again that they're not going to keep their word now.

The biggest problem for me is for people who claim will tom chinese companies are being audited by the big four, which means kpmg, why the pwc and deloitte um, and if they say that they're compliant with u.s gaap? I mean these are big four companies. Obviously they are well if they are sure if they are compliant. Why do they refuse to let the actual regulator of the u.s gaap to review their compliance if you're so compliant? What's the problem whenever somebody says hey, i'm good, but you can't search me. Imagine you're.

If you're a cop right, someone says hey, i don't have any guns on me, but don't search me. I don't agree for a search. I mean obviously you're within your right to do that, but i'm within my right to be skeptical of you know what you have on you so to speak. So not trusting the chinese on this and again this has nothing to do with chinese people.

The chinese culture. I love china and i absolutely have no issues with any of my chinese friends. My issue is with the ccp, the chinese communist party and how i think they're trying to play a fast one on u.s investors, just my opinion, hey sure i could make a whole video today, i'm dealing with some stuff, as you noticed i haven't been on for The past 30 days still dealing with stuff, but i wanted to jump on and kind of give you a quick update. Also, we have some big news about money talks which we will post today so watch today's money talks.

We have a big big update, which i think you guys will really really like we're going to cut this minute, just 10 seconds shorts before the 10 minutes. So we don't have extra ads.