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tv   Keiser Report  RT  October 21, 2021 5:30pm-6:01pm EDT

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ah ah ah i am ash kaiser, this is the kaiser report. did you see? we went past it. they denied or flesh things as to and now they're saying they knew it all along and it's in the track, the ball and it's going to go much worse. you say there was no transitionary period . there was no interregnum. they just went from 0 to oops, facing right. well, the question for the audience is, are you prepared? that is the 1st headline here max,
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are you prepared for the mass re pricing of goods and services? i might also ask that, are you prepared for the mass repricing of risk? because that has been miss price for the past 20 years, especially the past 10 years since the global financial crisis of 2008, 2000. and i, you have mentioned to hear many times about this or at the miss pricing of risk. and i think this is part of the reason why we see this supply chain chaos. we see partly because of all the mis allocation of capital that happened because of the miss pricing or risk for the past decade or so. yep. everyone knows the einstein equals i'm c squared, which was the beginning of the atomic gauge because you separated energy from matter. and a lot of people don't understand that the options pricing volatility formula i guess, is the mid seventies early eighties created an equal atomic weapon in the financial
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markets. because for the 1st time he could separate risk from reward and trade risk separately. and that became, that was the beginning of the modern derivatives market listed options market. and what this allowed for finance years to do was to engage in the practice of underwriting security and training securities in a way where they could package the risk, sell it separately. and lo and behold are about pack address ended up in places where i shouldn't end up like pension funds and other static pools of capital. now, here we are 40 years later, and the risk has accumulated these vast pools that are unable to be absorbed anymore by any of the accounting tracks or financier tricks. and this is causing, as you say, a mis repricing of risk and it shows up in with the repricing of inflation. so
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now we're seeing a quantum jump in inflation really because, but it, but it's been incipient. it's been there for 1020 years just now we're going to see the step change and suddenly we're going to be living in this world war gases. you know, $6.00 a gallon in the united states, not 2 and a half to $3.00 a gallon. and people say, well, how did that happened? well, it took, it took about 30 years for that to be engineered on wall street. right? so the miss pricing risk in my mind cause the misallocation of capital, which caused people to not understand that there was a great, great grave danger and risk in having a pure speculation. pure financial as pure consumer economy in which wealth was not created and which manufacturing and value added was not done here, where innovation was not done here. and we're seeing that suddenly, you know, the signs would have been there in the prices. the price signals were there,
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but since q we, especially since quantitative easing, since 2018, 2009, we've seen the annihilation the slaughter of, of the, of the bond vigilante class. so they would have sent a price signal to tell you this sort of thing. this sort of response is going to happen that this sort of situation of supply chain chaos was on us. and, you know, the inflation, the, the, you know, a was slowly happening and then suddenly, and it only seemed suddenly because they've been trying to control this inflation for so long or hide it in like overwhelming the audience, the people with huge price gains and our stock portfolios and their house portfolios are property portfolios, so they didn't notice the other stuff. so feds bark and says if it turns out that inflation isn't transitory, there's no shame in saying that unless you come on kaiser for them is a huge amount of shame for well, one of the ways that they hide it, of course,
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for the past 20 years is that the, the, the poor in america have gotten poor and they've gotten vastly more numerous. and the billing our class have gotten more 1000000000 airy to a great extent. and, but the government reports and the aggregates. so they always take the poor and billionaire and they put them together. they say to put those 2 together, we don't see any inflation. well, this worked for about 20 years and people were fooled by this, and anyone who complained was considered to be an american. well, now, because of the mis allocation of breast for so long in the ricochet, the boomerang, a verse coming back into the system. we now have catastrophic system failure. and you're going to see a rattling up inflation to reflect this. and it's going to be interesting to see already as i predicted, the contortions being used in the mainstream media. so logic is, i call to explain why. and we hear this from jack to sacking from the white house, trying to describe what inflation is, you know,
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and the verbal gymnastics used to try to put this together for the lay audience is amazing and frightening, but entirely predictable. so i went to brainy quotes. ok, you can either listen to jen. pesach eat up there at the the spokesperson for the white house. or we can look at brady quotes to look at some, some people throughout history and up to today have said about what inflation is, their quotes about inflation. so we'll start with the white house, you know, with the treasury, the executive branch, and remember at the fed has said there's no shame in saying that there's that inflation is no longer a transitory well janet jaelyn. so this is their mindset, right? this is what they're thinking at the executive branch. to me, a wise and humane policy is occasionally to let inflation rise, even when inflation is running above target. that's the executive branch of the white house. we'll go back to 1st. we'll start with vladimir lennon and k,
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what he said about inflation away. he thought it did. the way to crush the bourgeois see, is to grind them between the mill stones of taxation and inflation. so then we're going to go to 2 economists upon which a lot of the world we see right now is based off of their ideas and their disciples are in 2 different branches, one, canes and one. hijack ok. so 1st we'll start with a hyatt. i do not think it is an exaggeration to say history is largely a history of inflation, usually inflations engineered by governments for the gain of governments. and then john maynard keynes, he said by a continuing process of inflation, government can confiscate, secretly and unobserved. an important part of the wealth of their citizens. so
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there's high, a can canes to kind of office it ends of the right versus left sort of spectrum. especially as they've trickled down to, to day. and they're both agree that inflation is away for said for governments to seize the wealth of their citizens. right, well, it's important to understand what we're talking about here with inflation. and it would be one thing if the money printing was evenly distributed. so that would be one factor that would be one approach. but of course, that's not the way the money is distributed. the money is distributed through the primary dealers of which are, i think, 18 of them now on wall street. and for they, yes, essentially 10 for every one that ended up in the pockets of people working on, let's say the minimum wage or are in the lower wage category. so
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they, it's not evenly distributed. so that's a factor that is completely overlooked or not talked about. and without a shadow of a doubt, it undermines purchasing power. we see it even in labor mcdonald's, i saw a sign, they're offering $21.00 an hour to work at mcdonalds, even 6 months ago. they were fighting to raise to 15 from the single digits that it was before. if the, if the minimum wage had been keeping track of in real inflation for the past 2030 years. the minimum wage with already in america b, $50.00 an hour. that was, that's how it would be to, to map the money printing. but the, because of those financial engineers who were able to do a separate risk from reward starting in the 1980s. they were able to keep labor completely out of the mix. so labor has been, hasn't had the benefit of all that quantitative easing until recently.
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well, you know the thing about this slowly and then suddenly why people, nations, individuals go bankrupt slowly and then suddenly, is because everybody loves inflation at the beginning. just like everybody loved bernie made off and the reason why they loved very made off because they thought he was scamming or defrauding somebody else and giving them a cut and it was all play and in good society. well, the same thing here is everybody thinks they're getting wealthy with the beginning of inflation with the beginning of the misallocation of capital. who does i want to just sit at home and shop all day and you know, instagram all day and make your life seem like amazing who doesn't want that right . and then suddenly you have something like a pandemic. and you realize that nobody at all in your country is able to manufacture a mask, because nobody wants to get out of bed for less than $10000.00
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a day. so who wants to go do that grind of the actual work of manufacturing? but it's the manufacturing process itself, which is where you have innovation and happens on the factory floor. a thank god for a lot, even though we dis, i'm all the time. he's one of the few companies in america left that actually still manufacturers something here. and even then, like because of this, this misallocation of capital that has happened where people don't understand the whole process of wealth creation any longer. you the, that he was driven out of california. and he was tweeting about that in the past week or 2, where he's now gone. he set up headquarters for tesla in texas. he left as the legislators in california say, good riddance, go. they said that to him a year or 2 ago during the pandemic when they didn't want him to have operations running. and there you go. you know, this is the sort of mentality of mis allocation of capital. if you forget how
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wealth is created, right, you have to either have a command control economy where you're fixing prices as you would find in a socialist communist economy. or you have a free market economy. the worst would be what we have in america today, which is that you just print money without any rules or regulations. and you let the cluster crab on the oligarchs do whatever they're going to do. and that's resulting and social cohesion risk as the economy plus the economist magazine likes to call it what we would call rioting. and we're seeing of the country collapse questions and that's what he wants to apply any standards of accounting to their money. frank thing they did system this system certainly is collapsing. i mean it's good for our content, right? just like donald trump is good for political news. this is good for financial news . so it's certainly good for our show. that's why we have fresh flowers,
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new flowers and was area we upgraded? yeah, i mean if you're stuck like a bloomberg you've got to talk about minting, trillion dollar platinum going oh, whoa to them. well, i'm going to take a break and when we come back, much more coming your way with russian strategic patience with the west, particularly with nato and the you appears to have come to an end. the west is hell bent on lecturing. moscow negotiating and dialoguing among equals hasn't been part of the equation for a very long time. the west is making a serious strategic error. die
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and i cried. and i just had slapped the whole time out there. no one really thought anything different is all about. i just didn't feel good on the way for the surgery, his lungs failed. 30 seconds for the killed him. i had gotten stuck with so many needles that day. in 2019 doctor started talking about a new wide spread disease that caused severe lung damage. there's a few points that were really hurting all of the patients were diagnosed with a lung injury associated with using electronic cigarettes or facing products. he pulled this out. he really felt holy crap. his him died. oh no,
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he's be better. it was, i wouldn't want my worst enemy to every go through god. it was out of breath with the me. welcome back to the kaiser report. i max kaiser time now to return to our conversation with nick jam, bruno independent analyst of all things, geo politics and economics. nick, welcome back. remax. great to be with you. all right, we've been talking for a number of years now. the big trends that we were talking about are coming to fruition, unfortunately,
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because we have been warning about things like supply chain interruptions, supply shortages, inflation, money, print thing, the shortcomings of gold. all of these things are starting to see actual shortages . now, neck chip shortages are shutting down auto production, and apple is just recently forced to warn they would be unable to manufacture enough iphones to meet demand. so where are we in the cycle next? yeah it's, it's a very strange time and given all that's going on it's, it's, it's, it's almost impossible for anybody to keep track of all these moving pieces. now there are genuine supply shortages. no question about that. now, there are, there caught me and this is a man made issue. this is not something that came out. you know, some sort of natural occurrence or some sort of natural disaster, either from policies that these politicians enacted on these, you know, these ridiculous shut downs and coven policies have caused
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a lot of this. now that being said, i also think there is an element of them over inflating the supply chain issue and also maybe deflecting it from their money printing because now they can see no inflation and, you know, the rising prices that's not from our money printing that's from the supply chain disruption. so i think there's part of that going on there too. i mean there's obviously some, there's a lot of truth in that there is supply chain destructions. but there's also these central bankers that are trying to look to pin the blame on something else to write . well, there is a tangential relationship between the money printing and the supply chain disruption. and that all the money printing line to horrible mal investment and rewarded the worst economic actors and penalized those who are actually efficient and doing good work. so now it's a co terminus. death of the fam, money system that we're witnessing in real time. you know, it's funny because even 6 months ago, official policy makers never used the word inflation. they were so worried about
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deflation. they were so saying, you know, we have a problem to inflation, we have to keep rates low. we have to keep printing money because of all this deflation. and suddenly we're in a period of inflation that they now claim as good. and they claim, as transitory but neck isn't the risk really, that they're going to be on. they're going to be behind the curve and fail to mention the $800.00 pound gorilla in the room. and that is hyperinflation. absolutely. now i gotta clarify something because inflation is one of the most misunderstood concepts and all finance economics. people don't realize that the word, inflation, the meaning of the word inflation, has changed forever. you know, look in the dictionary. it's an incredible story ever since webster's dictionary was founded in like 1828, up until 2003 inflation was defined as an increase in the my supply kind of makes sense. you inflate the money supply that inflation after 2003,
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they changed the definition. you look in the dictionary and it says like a general increase in price levels. now that might seem like a subtle change, insignificant change, but it's massively significant that that'd be like redefining a robbery to magically make the robber disappear, the person who's causing the action to happen. so people are massively confused about inflation. inflation is totally, it always is a political phenomenon. it's caused by politicians. it's caused by, i don't like to con policy makers like on central planners. cool. but it's caused by these people. it's not caused by the what's your, the car maker, the home builders. it's caused by money printing, plain and simple. so by trying to manipulate words, change the definition of words and confuse people. this is realistically, this is a sophisticated propaganda operation by chance trying to change how people think of things being said, yes. so there's a lot of confusion about inflation. you know, 1st they tell you there's no inflation, then they tell you it's transitory then they say, oh, it's not transitory. it's actually a good thing. i mean,
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it brings to mind the old saying that, you know, don't sit on my goods and tell me it's raining. that's what these people are doing . you see these headlines in the new saying, oh, inflation is going up, but don't worry, that's a good thing. like, you know, people's cost of living going down is what kind of a psychopath thinks that's a good thing. so yes, inflation is a terrible thing. it's a poisonous think it's, it's well 3 distribution from savers to the politically connected. basically, it's a horrible, horrible thing. and anybody who thinks inflation is good is either a full or somebody benefits from the system. yeah, you know, i say, hash tag empty shelves, joe is trending on social media. people are starting to notice that shelves are empty because the ravages of hyperinflation, inflation, and mismanagement. and it does remind some folks of the soviet union. and i, i think back to our friend dmitri orloff, who wrote maybe 1516 years ago now,
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an essay called the collapse gap. which basically foretold that the u. s. would follow the soviet union down into a collapse pretty much for the same reason over militarization. and with americans, 6 or $700.00 military basis around the world having just lost 2 african in afghan, leaving $85000000000.00 worth of weapons behind. it seems like he's got a point. is the u. s. collapsing neck? yes, i think it's undeniable. the us is collapsing on yet. look at every metric. where is it not collapsing? it's collapsing, geopolitically it's collapsing economically. it's collapsed collapsing. culturally it's collapsing socially in any kind of metric you look at and it's going in the wrong direction. clearly, you know, commodity prices are soaring. usually this is good for developing nations like our tina, which are big commodity exporters. what do you say in there? yeah, you know, look, it's a tug of war between the money printers here in argentina and rising commodity
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prices. i mean, they're pretty, you know, as bad as the u. s. is and all the other countries are urgent. tina they are printing bulls of currency here and they always have it's nothing new people are used to it. and especially in political season when the politicians want to print money and not to voters by votes through money printing essentially. so if you opposing forces. yeah. argentine is a huge commodity producer there rising commodity prices great for argentina. great for the pay. so in money printing, i don't know what's going to went out here. it looks like the money printing is, is overpowering the effect of the rising commodity prices. so it's kind of mixed, but in any case, nobody use, i mean, you know, the only a fool would hold their money and pesos here. they use it for, you know, they have to because it's legal, tender, they're forced to know what he saves their money. piece those, not even the dentist argentine saves their money and they all exchange it to dollars, which is relatively harder. i mean it's all john coffee currency,
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but it's a relatively harder fiancee. however, argentina has a big built an advantage in that regard because it has like a quarter to a 3rd of the economy is this informal, underground economy. even large corporations that operate here operate on the informal economy to and that can easily be reachable. instead of going into dollars, it's going to harder currencies than harder money than the dollar can easily going to be. in fact, we see a lot of that here too. and in argentina, you can see a lot of folks who deal in this informal economy are turning to big point and it could very easily be re tool the right way describing there some call the curse of natural resources, right? countries that with a great natural resources or energy, they get overly dependent on those natural resources and leads to policy failure. this in africa, for course a 100 years or more. but africa is now leading the world in bitcoin adoption. let me repeat africa is now leading the world in bitcoin adoption. places like nigeria
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are turning, you know, a bog into a feature. they're now leading the world in many ways. a sion argentina take a page out of what's happening in nigeria right now in terms of pick one. 0 absolutely, and i see them doing that in many ways. so, you know, here in argentina they have, you know, different exchange rates. there's a blue rates in an official rate. the blue rate is the market rate, of course, and the government kind of says, hey, the piece on the dollar. this is the exchange rate. we don't care what the market says, but of course, that is a price fixing and it doesn't work. so there's this black market that develops in the people who are exchanging these, this money on the black market, which i mentioned before is huge. they're going, adopting big point and so big point is getting infused into this informal, which is really the more dynamic part of the argentine economy is the informal and it big, they're really picking up big point. you know that way. so they are taking a page out of it, they don't have a book. healy who will, you know,
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change the laws, but on a more ground, a local level, i'm more grassroots level. they are, it's moving in the right direction. right. so getting back to america as the new soviet union and is a collapsing, i saw the interesting number here. so i'm more than 4000000 americans voluntarily quit their jobs in august. you know, in inflation is now officially running a 4.5.4 percent, but we know it's actually if you are to include stuff that people actually buy the inflation an american i was running over over 15 percent. so, why would people quit their jobs on again? well, in a couple of things, 1st, let's look at the inflation. you know, they shouldn't, you don't, we should never, ever use the cpi which you're referring to as, as inflation because that's a government statistics. and that is highly manipulated. i mean, it's completely ridiculous. it measures the basket of goods for, you know, 330000000 individuals. that's ridiculous. your basket of goods is different than my best of goods. is different than somebody who is in manhattan. different than somebody who lives in nebraska and so forth. it's like trying to like take the
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national average weather temperature, an average of the weather temperature across the whole country and say, well, you know, the average national temperatures this i'm going to wear shorts today. i'm gonna wear jeans so it's patently absurd on all levels. this, this and of course, the manipulate it, they take what they, you know, they overstate some things and understate some things. so it's a complete sham. that being said, why are people working and where they're leaving because they're getting free money, they're getting and you know, they're basically there's been a back door to a universal base income, which is also funded by money printing. so it's kind of look, there is no way out of us now. now this is a self reinforcing political cycle where you have this class and a lot of people who are dependent on money printing and the money printing is making their situation worse. and they want, which makes them demand more money printing. and it did this is that there's no way to escape this. it's politically impossible to roll the stuff back. and that's just, you know, looking at the, you know, voters and, but also you look at the debt, the u. s. has, they can't raise interest rates. i mean,
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if they raise interest rates, they're going to go bankrupt on the interest payments. so they really, really have no option but to print more and that's what's going to happen. right? like it's always prices. we've got like natural gas exploded, 40 percent higher in one day. that looks like beyond just you know, commodity reflecting money, printing. it looks like the market failure neck. certainly there's all sorts of stuff going on. the money printing is a big part of it. yeah. and there, there could be market feel, you know, there could be disruptions and work in the workforce to, you know, the scope and stuff as disrupt the workforce in many ways. yeah. there's a lot of things going on in this uncertain time. you know, it's hard to be an investor with, i mean the markets are insane. valuations. we have this terrible macro back draft that we've been talking about. why would anybody want to invest in this? i mean, really, you've just got to look at safe havens. and me, big coin is, is that top of that list?
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all right, great. well, nick jam, brenda, looks like we're talking to in the basement of a church, which seems like a safe place. well, actually in your, in argentina, and that's the style of architecture here. it's, it's just a regular home. thanks to bring on kaiser report. thank you max. oh, all right. that's going to do it for this additional kaiser report with may max kaiser and stacy herbert want to think, i guess thank jam bruno until next time bio ah, ah, russia strategic patience with the west, particularly with nato and the you appears to have come to an end, the west is hell bent on lecturing. moscow negotiating and dialoguing among equals house have been part of the equation for a very long time. the west is making a serious strategic error. ah,
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the rather before us to point the closely within the daniel's trulia with the basilica, thought the other mother like melissa was assumable. it was just blue. say that him and then you would you that is images, moves up was good for supposedly gonna have my did some i would say again or spend your music in, which is sprint. so we come up with her, was out of the to get the vote. if i give all of your rooms there some way up, all of the fella we value you didn't leave the to the shelf. little push up with
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a president. putin says he believes moderate conservatism, the most reasonable policy approach in today's turbulent world and an hours long q and i, it rushes val di, discussion platform. from my point of view, moderate conservatism seems to be the most reasonable policy for the upcoming time period of re imagining the world. and it could last some time as the final design is on cost. this policy is going to inevitably change massive supply disruption. and star shortage is i had across the united states, oblique morning from the federal reserve. but president biden refuses to accept responsibility instead blaming his predecessor and rival republicans and tempers. fray between the e. u and member state poland over whether the blocks law should take precedence the
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route dominating this week. summit in brussels.

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