tv Keiser Report RT November 9, 2021 7:30am-8:01am EST
i am max taiser, we're good. dig into global macro economics, and once again, visit the treacherous path of our central planners who control the money printing? oh yeah, stacy? well max, i came up with a term saying strap in and get ready for squid. well, for you out there in the field world, you might not know about this thing called squid, which is like a digital theat scam, sort of situation, which was a scam coin, visual coin created at a thin air, and it went parabolic. so parabolic, that it got up to over 2 trillion dollars and market cap and then within a fraction of a 2nd collapse down to 0. that is what i'm saying is where we have to get ready for that. that's like hyperinflation, right? that's what happens. it goes up to like enormous amount. everybody is fabulously wealthy. if you add it all up on paper until the rug is polled. so here's an
example of what we're starting to see in the headlines. british pound plunges more than one percent after shop bank of england decision, bank of england, unexpectedly kept rates unchanged. sterling is now the worst performing g 10 currency. so there you see a quite a plunge in terms of displacement of economic activity. of course, it's a, you know, it's one of the bigger in the top 5 currencies in the world. so it's a lot of when it makes that sort of move, it's huge ripples. right, right, right. well, the bank of england unchanged that near 0, near a p and central bank, unchanged it near 0 federal reserve bank of america unchanged, that near 0. that's the latest moves, or lack of lives by these 3 major central banks, that some would argue, control the global economy for the most part because they have the greatest reach.
they've got the greatest military strength, the greatest influence post world war 2. and they all are talking about raising rates at some point the future as they've been saying now for 20 years. but the baseline fact is that you cannot taper a ponzi scheme, right? the money printing is the base layer for this huge permit scheme. that now is spilling over into the hyper inflationary collapse of the viet monies against assets and particularly against big coin. but we're at, we're now in the crack up boom phase. that was articulated by economist time in minsky. and this is exactly why mar germany where people are fleeing the fee of money into assets like stocks for the time being an escape and the, the result very quickly. now, as we've been predicting now for at least 5 or 6 years here and cars report and documenting every step of the way every lie told by all of the central bankers of
the all lies. and the proof is in what's happening right now. right. and again, you know, strap and get ready for squid, because the strap in part is like a, it's super exciting. at 1st. it feels great. here. all euphoric, every thing is like, yeah, keep print and keep printing, keep printing everybody's excited. just like a banker. you know, the bankers get really excited when bad economic news happens because they know they're going to get some more free money. so until it all classes and it collapses, suddenly it doesn't collapse like slowly it collapses, certainly. and so the economics of these rug bulls is a really important and the psychology of these rug poles to see like when everything is pulled out from under the economy. and it was during the pandemic, right? we, we literally pulled the rug on the entire economy, locked everything down, shut everything down, so it's still an ongoing thing. it, it is all around us falling apart and we see it. we see the shortage as we see the
supply chain disruptions. we see it all, we can see it, but it's, it still feels euphoric and fun, right? because everything's going up. markets keep on hitting all time new highs. but here you're still seeing sort of signs of just like with this squid scam coin that happened what it was, is like it went up to over $2000.00 a point because everybody could buy, but you could not sell it. so this was an interesting take here on the washington post. my latest american airlines cancellations are a window into why people are so upset. quote, if we want to understand the frustrations of roiling americans and the sudden popularity of let's go. brandon. the cancellation imbroglio is actually a good place to start, so they're calling it skimp flay sham. so everybody has all these bite and bucks are getting lowes of money. you feel you for, you want to go spend it,
but everybody has them, including the crew that work on the ground. put your luggage into the plains, the stewardesses and stewards. they are also getting all these bite and bugs. why do they want to show up torque? so everybody's wanting to spend their money. and everybody including all the workers that would normally prepare the food for you at the restaurant or, or, you know, man the flight during the, during the actual flight. nobody wants to show up, so everybody's getting angry and frustration is building, right, right. price signals are deteriorating in the economy. and as the difference between, let's say, a capitalist economy in a socialist economy. and in this economy where money is being printed and handed out without any concern in terms of the economic impact, what happens is you get mis allocation of capital, which generates more bad price signals, which policymakers look at and then misinterpret. and then there are responses to
print, more money, and the whole negative loop gets exacerbated to the point of systemic failure. so this is exactly the case then if you had said the engine of your car, the little bit of a rattle is starting in the engine. you hear it rattling and then it, it reinforces itself over the course of 20 or 30 miles. and then the engine, the systemically broken, and then you go to a dead halt, the dead stop. so the economy is suffering something similar. the price signals the mechanism, the transfer of how to allocate resources between 2 parties in a free market capital a system is broken, and now we're coming to a dead stop, right? and we're all bite in buck gurus. we've got all these bucks these free bite bucks and we want to spend it. the same happens however, across the entire spectrum. so all of us in a think we're getting to live like a private equity or hedge fund guy who only has to work one hour a week,
calls up the fed, should anything go wrong and money gets printed. so, you know, on top of that, you're seeing that, that, you know, the, the actual mean sort of stocks where it's all a figment of our imagination, the entire e can, the tire economy is a figment of our imagination, really at this point, as if or a figment of jo biden's imagination will come back for a 2nd. i know labor is really having a moment here because they're exercising their collective bargaining position. yeah . first time in decades, and i've often said many times that as long as the central bank is able to change the price of money through interest rates outside of a free market mechanism, labor should be able to demand a wages that are higher, you know, minimum wage they should be able to increase minimum wage if you want to get rid of minimum wage, then you also have to get rid of the central bank. but you can have a central bank for the plutocrats to scan the system and then prevent labor from getting a wage commensurate with the money printing. if the hourly wage in america right
now, if it kept track with the money printing for the plutocrats would be $50.00 to $60.00 an hour right now. that's where it should be in this environment. so now labor figured this out and they're saying, you know what, we should get 50 or $60.00 an hour and we're not going to go to work. and because we're strategically important, just like the banks in 2000 and i remember they said we're systemically important, you need to bail us out. now workers are saying we're systemically important. you need to give us money and we'll just stay home and that's fine. you know, one of the threats that has always happened to them is a, we're going to out source your job. obviously, we're, so we have pandemic permanent locked down. that's difficult, right. and all of the cargo ships being totally backed up for miles on ends. you know, that's not a really good threat anymore. and the other was that we would replace you with robots or a i. so i want to look at a story about a i and the failure of a i, you know, so in much of the western world we have the property speculator. usually it used to
be the mom and pop started. property speculator, buy a property, fix it up and flip it while then zillow got into the game. and that's an app which gives you as estimate of what your house might be worth. and people got obsessed with that and fixing up houses and stuff. so zillow got into that game in 2019 they started actually buying properties because their algorithm, their a, i knew better just like all the clients back in 22008. they knew like how to package up all of these sub prime debts. into something that would actually be aaa right? well, zillow, quit home flipping business sites, inability to forecast prices. at going back to your story about capitalism like to be able to predict prices that you never can imagine the subprime that was this idea that you could predict the market going out 5 or 10 years and package subprime mortgages, that would be acceptable to the market it totally blew up cause
a global financial crisis, long term capital management, same thing, nobel prize winner economists. they were in the hedge fund business. they had it all figured out and blew up, required a massive bail out, alan greenspan at a lower rate, $987.00 stock market crash. it was, we figured out how to gear the features mark in chicago and the cash market, new york. and we've created a product called portfolio insurance. well, they blow up because the quantity blew it again. a, i does make people smarter. a i just makes people get be stupid, auto, you know, with, with, with, with an automated stupidity. it's an automated stupidity. so now zillow is, once again, you know, getting into a situation, we've seen dozens of times where they thought they could beat the market, the market stop pounding them. some say this could be another subprime crisis. they've got to unload 7000 properties. the company is going on, you know, is, is in dire straits. but once again, it to your point, you know, relying on a, i or outsourcing to robots and computers. it just,
it transfers because are designed by humans. it just transfers human stupidity to a machine. you know, machines can be equally stupid, is also a system and a network and reflects all of nature around us. we are but a fractal of everything around us. so observing the algorithm as observing human behavior and observing what the price should be. but we're all also motivated to sell our house and we see what the price is going to be. so we, we change our out, we change, we change the outcome of the alpha right us. so zillow was a, i was telling zillow that they should buy a house cuz the price is going up. so they bought the house and the price went up. and then the, i said, well, the price just went up to buy another house. yeah. so they're, they're smoking, their own belly button lint in this virtual circle of self reinforcing their idiocy and al collapse, exactly like subprime. just like long term capital management, just like a soccer question. i think they some, the bank rush of 1993 ever. it's all happening, a i g, the 2000,
right. bear stearns, lehman brothers. it's all hubris. it's all the same exact thing over and over again . chuck prince citibank said, as long as the music plays, we're going to keep dancing. then the music stopped and it was a huge crash. the music all was stop, these are just, it is armed with computers to magnify their idiocy. right. and well, richter said about the story by the way, that it was wall street that was driving this from the very 1st day, the very 1st house. they tried to flip in this program on zillow. they lost money and wall street. however, i didn't care that they were losing money, they wanted volume, so they encourage the company to keep buying more because they were willing to lend them. or if they bought more, right? because the currency, the underlying dollars, the fear money wasn't providing a signal to tell you to stop being an idiot. keep doing an idiot because they're gonna keep pumping out morphia money. and now we're at the verge of global financial collapse park to after the 2008 globs. all right, and we're going to take a little break and when we come back, much more coming your way. ah
oh, is your media a reflection of reality? in the world transformed what will make you feel safer? isolation, whole community. are you going the right way or are you being led somewhere? direct. what is true? what is great? in the world corrupted, you need to descend, who join us in the depths or remain in the
shallows. as a korea professional sport is much tougher on some than others. mission with the euro . she might by everybody. so why would somebody believe me? i was just a little girl to price upgrade to to, to achieve really was was proud to read the paper this morning. usa swimming coach, arrested leslie had sex with a 12 year old girl. this happens almost every way we get calls at the office. i get informed about one of my greatest fears is someone is gonna start linking all this together is going to be a 60 minute documentary about youth coaches in sports like gymnastics swimming, is that documentary? i see it on our tea with
both. ah, welcome back to the kaiser report. i'm as you guys are time now to return to our conversation with marshall r bock. he's a market analyst over there at the levy institute for research. marcia, welcome back. thanks for having me back again. it's always great to see it all righty. so stacey herbert came up with an interesting idea the other day talking about the current economic conditions in the u. s. and elsewhere. it's kind of like a live experiment of mt. monetary monitor, money theory, and one month. yeah, yeah and, and so we're seeing how would play out and it doesn't look like it plays out well. so is that a fair statement to make and what are your thoughts on that?
well, there are 2 aspects to modern monetary theory and empty. there is a description of how the monitoring and financial on fiscal operations of government actually work. there's also a normative side to it. and they have the image tiers have quite rightly broaden the scope for discussing what can be done in terms of fiscal capacity. because they pointed out that a lot of the so called financial constraints are no longer there. now that we're no longer operating under a classic old system, they know that you only have t at currencies. and if you have the capacity to create currency, if you considerably more latitude in terms of fiscal policy, the issue becomes however, that when you have that power, who are the type of people that are, are deploying the believers of fiscal and monetary policy. so the risk is that if you don't have any kind of political constraint built into the system,
then a lot of bad in happen as well. that's not the fault of m and t per se. that's just i'll, i would say a flaw in human character, but you know, if you have a guy like donald trump running the government and he just does use his all that new found physical capacity to bail out, is cronies and all the rest of it. and that's not going to lead to a particularly good outcome. and that's the risk we have right now. you know al salvatore recently, after thinking about this problem decided to outsource their entire central banking function to pick coin and lead pick coin be there legal, tender. as are, is all things are really making a positive change in el salvador. and the whole region is looking them adopting a big coin standard it's, it's similar to a gold standard but a lot better. and it gets to your point that without constraints, it's virtually impossible to come up with a system that's not open to the availability of humans and humans interacting with each other in ways that so far we've never seen it ever work over over time. at
scale, never. so yeah, what it is, is bill kelly, the president of el salvador on to something here? well, he's certainly right that in the sense that he says there he has for, for a fee, a currency system to work. you have to have unimpeachable. there has to be a degree of, of political sent in the population that your institutions work, their fair, and that there are functioning properly. if an element of is function starts creeping. for example, if you don't believe any more that the governor is going to be collecting taxes fairly, or if you have these in the system, then it undermines the value of that. it currency is, for example, if you don't, if people, if government can force their own io use and then course taxes, and you could get a very dangerous situation economically and politically. so the president of el salvador is taking the view that i'm just going to be politicize this through the introduction of a crypto currency. and you know,
it's an interesting experience. you have, this actually works. i mean, let's see it through a full economic cycle. i have some issues with with currency but which we've discussed before, but i will say that the onus is now going to be on people like us. right. well said ok, so let's talk about those folks that are going to dallas every year. they've been pushing for this notion of a quote, great reset. they seem to know what dr. michael watson has been suggested for many years. and debt that can't be repaid won't be repaid. so what is the great reset? is this code for a big jubilee? that's what you would think of clearly they want to get ahead of this because either way they're going to get screwed. i mean, the people that go to tablets, they mostly are in the credit or class. so of a form of a debt jubilee or some sort of debt, right? it means that they are going to take a hit. the question is,
do they take the hit in an orderly way because the government basically says we're going to have a debt you believe we're going to have you're going to pick or take care cars where you get like $0.50 on the dollar or does it come through in ation, which erodes the value of the assets they actually have. so i'm not sure that they're actually prepared to go yet towards a i do believe that they're trying to get out of the issue. so they can say got as much of their wealth as possible, but at the same time, preserve a degree of social stability so that people don't come up with pitchforks. right? so to put us in contact with part one of this interview, you all think that the lease will hit the hyper with the inflation button always because that's the easiest way to inflate away the debt. and they're not wanting to go through the political paying the debt forgiveness. let me ask you this. so you're up there in canada. and so you know,
comment on the u. s. elite media elite. it'd be like to talk mil for us. you know, and the, the foreign looking in on the america country here, they seem to have lost their mind, the american media late lesson their, their idea is they want to have the population in prison or worse. there's that bode well for the economy, economic future in terms of having the ability to even deal with these many crises . marshall. well, the problem is that, you know, there are heterodox use such as your cell. but for the most part, media is high, heavily concentrated it by a corporate ownership, which is controlled by those very same elite that control the political politics in this country and increasingly control the political discourse. and you're seeing this through a heavy concentration social media and increasingly the people that run the social
media platforms, whether it be google, facebook, twitter, or judge jury and executioner. so they tell us where we can and cannot hear the tara, what's response? what's not responsible. so that thanks you for the down the road to liberalism and you combine that with a lot of the, the so called the know woke culture, which i think is a convenient way to escape discussions of the real structural problems that we're facing. it seems ok and if you just take an e in front of your bank for like jamie diamond did, does, that's okay. but it doesn't really deal with the underlying issues which gave rise to protest in the 1st place. right. ok, fair enough. now here's a question i'm going to read verbatim because it's a very precise question. the rise of china, the us open, the states that china is an economic competitive threat and that in order to stop it, getting further ahead of us, our allies should stop trading with them. how does this through acidity is trap?
that is to say, the rise of china as a global empire versus america. how's this play out? marshal? well, we're already in cold war 2 point. oh, that's clear. and, and in some ways, the problem is that the soviet union was never really a significant economic competitor. even though it had a significant degree of nuclear weapons, china is unusual because in terms of economic development, it's, it's, it's improving very rapidly. in some areas, it's actually a head of the un, certainly in areas like ai, for example, drone technology. there, there are right up there right now. so yeah, it, the question is therefore, how do you handle this with my own feeling has been that, you know, you, if you continue to offshore a substantial part of your manufacturing capacity to countries that may not have the same kind of economic and political interest in here that you're asking, you know, you're effectively as, let's say you're, you're, you're giving yourself
a room with which to hang yourself. and people talk about, for example, the efficiency of, of re domiciled in the midst of supply chain. so that with me we should be producing more, they are being, you know, it's, it's inefficient to produce all the semiconductors at home because it can be done in taiwan. but if i was invaded by china, they're going, you know, 50 percent plus of the, of the memory chip capacity. and that throws the u. s. jose global economy into mass recession. so, economists like to talk about the virtues of free trade. they don't seem to talk about the economic efficiencies that come from war. i think you diminish the chance of having complex when you actually build in a degree of domestic resiliency into your economy. which also gives you a lot more high, high paid, highly paid high school, highly skilled jobs which you, which need to be brought back home. that's the way i would rather see this country go to the us and canada by extension. as opposed to seeing of some heightening
confrontation and increasing military exercises. and that part of the building and bring it an extra blade towards a. com, where nobody will win. for i think the rope quote it was karl marx, not letting you know what can we can go through the library and check on that. never asked. yeah. there was a class you know, war is a hugely profitable business. you know, half of the american tax dollars goes to the pentagon. this is true around the world, is a hugely profitable business. so the winning ourselves off war would kill the economy instantly. you know, there. and so i guess another quantify what, what, what would it, capitulation if we were saying we have to degrade chinese economic capacity in order to compete for them. i mean that that's effectively an admission of failure. you're saying we're not going to compete with them or try to be better than they are at producing various things. we're going to try to degrade their capacity to enrich themselves and to grow economically. because that's the only way we can beat them that's. that's effectively what the biden administration is saying right now. i mean, gina remote and the commer secretary said that about
a couple of months ago, she said, you know, we've got actually, we can't trade with them because we have to degrade their economic capacity. otherwise they're, they're, they're going to beat us. yeah. it's the tonya harding approach. yeah, exactly. i've used that analogy. that's exactly what it is. lets me cap them. yeah . and, and that's the way we're going to beat them. yeah, i, when i read that i was kind of shocked because the american like even whether it's shoe or not, they like to think of themselves as you know, the frontier people out there fighting it for the right to compete and b. yeah, this seems like a complete repudiation. everything that america it thinks itself as. and it was quite shocking to hear that. and it's completely wrong because it heard of everybody, but mostly it hurts the united states. you know, you may have trouble a little while ago. you know, lot of the reason why trump is hated in the united states is from the blue check, blue blue democratic hillary clinton crowd because he got rid of the salt cap on
their taxes. they can't right off their taxes against their real estate and particularly hit the media elite in new york. and now i'm looking to reverse that. it just goes to the one percent or the top 110th of one percent is purely pure example of cronyism. we have about 10 seconds. am i am i on the right track there? yeah, yeah, you've got the democrats like to talk a good game. but at the end of the day, like the republicans are slaves and i don't a class and that's always going to drive their actions 1st and foremost, all right, marshal, are back long time frustrated. toronto maple leafs fan, thank you for all right. i was going to do it for this visual, the kaiser report with may max kaiser is days here. we're going to think, i guess marshall arrow back of the levy institute until next time bio. ah,
we're empowering ourselves to be more efficient or quicker with our transactions. we can make mobile payments from our stands. this truth is that every device is at potential entry point for security attack mitigation, i think a eventually there's a thousands, maybe sometimes millions each day. they use the cyber, they use the technology. it's an extension of traditional artificial intelligence has not many main threat. this is due to the 3 laws of robotics. one of the things that's happening at the mini cyber implants right now, i'd be aware that really worried about it. most people would really be you can put a chip in my brain. so there has been a lot of progress from the hacker side using ai and using other advanced
a just leave the area now for we we were both to brag. several 100 microns, including children, remain stranded on the bellow, russian polish borders. they tried to reach the e. u while warsaw recuz's men skipped escalating the refugee crisis on purpose. it's off for a day of flashes, tear gas, and chaos of the border. the groves of migrants trying to break through fences and in other news behind closed doors in an unprecedented security movement. the new zealand parliament locks itself in as hundreds protest outside about vaccine mandates and locked up and rushing. developers come up with a brand new invent.