tv Keiser Report RT November 16, 2021 5:30pm-6:00pm EST
well, you know what, if you thought the highest inflation numbers and 31 years was bad? well, wait until you see the producer price pipeline. now you know how in the world of energy, everybody concerns themselves with leaks from oil pipelines are natural gas pipelines. and this is a risk. well, nobody was looking at the producer price pipeline because coming through that pipeline, are a lot of leaks. we're seeing the money printing all of that trillions of dollars over, especially the last 18 months is starting to pour out further up the producer price . pipeline inflation reach is at over 20 percent heading for consumers. massive price increases now building up in the pipeline. max, well, that's right, and sewer prices are going to be up again sharply because the stuff that companies
buy to manufacture those consumer prices is rising at a rate even faster. they want being reported as a consumer price for cpi inflation. and those prices are going to be passed on to the consumer companies don't like to do that. they like to internalize those costs or whatever they can, usually through accounting machinations through doing off balance sheet accounting tricks or by outsourcing this or that, you know, they don't like to because you know, they're competing for the consumer dollar and they'd like to compete on price but when you have a situation, as we do now, after many, many years of rogue central banks around the world, hitting the print button for every single problem that's ever comes down. the pike solution is always the same. print, print, print, and then the central banks try to hide it by hoarding all the cash on their balance
sheet. well eventually the system breaks and cove. it kind of was the straw that broke a camel's back. so all of that cash sat. nothing. this coven, a supply line breaks, it's about upsetting this huge vad this reservoir of, of liquidity, this now spilling out and slashing out, and causing what i believe to be the beginning of a secular inflationary period. that's going to be lasting for years. yes, because importantly, as we'll richter, points out in this article in the mindset is changing. so people normally when prices are rising, when car in autumn used automobile prices up like 20 percent, people pay it. flights up hotel rooms up all costs up meet prices were out. something like 8 percent in just one month, beef prices and the i says people paying it, they don't care. they're not bargaining. they're not,
they're not head donek adjustment. they're not replacing it with burger. instead of puts us into perspective. people in america were willing to forego experiencing inflation that would come from allowing for high paying factory jobs to stay in america. pay more for stuff, but have a higher paying jobs. they're willing to make a bargain and saying, well, we're going to send our factories and our jobs to china. because for us, it's more important to get cheap stuff at wal mart and other big box stores. well, okay, that's the devil's bargain, because now they're in a place in america. they can't even manufacture masks during the pandemic. there's no manufacturing base anymore. china holds all the cards. the cost of rebuilding the factories and jobs here is prohibitively expensive and they're, they're out of the, of any wiggle room to do that. anyway, it's finished. so this was a bargain that was may 2025 years ago under clinton. as a matter of fact, when they brought china into the world trade organization, w t o,
this was the quid pro quo that we're going to essentially give america a huge break on flat screen tv. within 2025 years, we're going to bankrupt the country and that's what's happening now. well, the ordinary consumer, the one who pays these increasing consumer price index, the $1.00 subject to the 6.2 percent increase that we're seeing year on year. they feel good. they feel happy, they fell rich, they got lots of bite and bugs before that trump box. they've got lots of money, they got cash, they got debt. now debt is exploding, so they're willing to pay it. they feel happy right now. they think good times are here. their stock portfolios are up, everything is up even, they're used, car price is up, so they're feeling good right now. that's the way they are. they're consuming, like mad people. so nevertheless, the prices are increasing and eventually it's whether or not this mindset,
the old mindset used to be workers where to increase their pay, right? they would demand increases in their pay when inflation back in the seventy's went up 10 percent. well, our, our salaries went up 10 percent, but people aren't even working anymore. they're not working. so that's likely to cause a spot in inflationary spiral, but the fact that they're willing to pay whatever and an increase or debt, whatever, you know. so this is from last week, remember just to remind you in case you're unaware of what happened in u. s. in terms of inflation, a u. s. inflation was up 6.2 percent in october over a year ago. that's a highest inflation and 31 years. inflation was up 0.9 percent and october alone, a much higher increased than 0.4 percent and september and 0.3 percent and august prices are rising for food, energy, shelter used cars and new cars. right. well, you know, let's keep in mind the prices are rising and arrayed faster than the government and counterfeit more paper money. so the net effect is not one of joy in the valley.
you know, thanksgiving dinner prices are incredibly high compared with the last year or even in the last 20 years. and people are going to feel it at the around the thanksgiving table. and you know, grandma is being rash and some stuffing and gravy. and everyone else has to go without. this is more like christmas. you know, christmas a santa claus, gave it a for a give people lumps of coal. that's how bad inflation is. you'd be lucky to get a lump, a coal this christmas. what's the inflation transit? they're going in this direction, but nevertheless, you know, this is something that's not going to stop on a dime, this not transitory. no way. well, at the moment the mindset is changing. people fell rich. what grandma is getting a bigger social security check. you know, there's lag time between all these things. you see, you're a, you know, your social security check go up by like almost 7 percent a month. you're like, yeah, which, you know, it takes you a while to realize that it's going,
it's not going as far every month. so grandma might take until like maybe february or march of next year to realize like that that doesn't mean anything. but also the other thing that people might realize because humans are like primates, right. and we get envious and jealous and we see that yeah, like my paycheck is going up or my income my, you know, the transfer payments from the government are going up 67 percent a month. but lo and behold, what's happening out that the very, very top well, that's why i have my crown here. oh wow, beautiful. even the i m f is realizing the error of their ways, and they're saying, oh, my bad, let them have brioche, right? so the i m f tweeted that pandemic has made the richest household richer. and the u. s. net wealth for the top one percent rose 7 fold more than households in the
bottom 50 percent. they give us some nice charts showing how much the net worth of the top aristocrats of america have done like 7 fold, 7 times, 10 times more of the money that was printed and spewed that the pipeline of money that just was sprayed all over the place. most of it was captured by those with a giant net of like high. so the i m f as is copying that to this, that they caused this so wealth and balance. also, the bank of england, the bailey, the guy runs a bank of valan racially, made a public apology for causing the inflation by printing money. well, the i, m f doesn't run anything, but certainly they are an organization that is, you know, multinational sort of like overseeing these institutions of how every other the, all the poor countries, the bottom 50 percent of poor countries should behave and what they should do with
their money. meanwhile, the top 0 point one percent of nations are spewing money all over the place. the inflation is trickling down all the way down across all the poor countries of the world. food prices are rising at the fastest pace since. well, the last time we had a global financial crisis in the last time, there was global revolution. and that's one thing i want to point out in this chart, which is a kind of, you know, and i am a complicated chart to look at. but one thing you do see that the saving of wealth in the time of coven, so wealthier households in the u. s. saved more in, gained more network the pandemic. so they look at like, how it was, how it is a normal times on the top bit, and then how it is during coven. so during normal times, the, the, the top one percent gain, you know, that percentage share, it's like 10 over 10 percent. but look at, look, if you compare them to the next 9 percent, the next 9 percent,
those from the top in the top 10 percent, but not in the top one percent. those are the most important to keeping this sort of system in place. those are the people you when you tune into the cable news, those are the think tankers. those are the washington elite. these are the next, the, the, the wrong below the top one percent. the finance here is the hedge funds and private equity. the tech giants that those people are the ones. right. so using a futile as a model, the money printers of a king's and these would be the, the priests, the, they're like the raj, they keep the people in order. they, they tell you through their think tanks, they tell you through academia, they tell you on the news every night how you should feel happy about the situation . but in the coven thing, they lost the most relative to the, the wrong above them. so they were always getting a little bit more than the south one percent. now, because of coven, they're getting less. so they're the ones likely because they are social climbers
as well to get very angry about when they realize how difficult it's becoming relative to the wrong above them about how much they ran off with it. so right, so couple things. so the inflation is changing the attitudes, which is going to lead to panic, buying, which will increase inflation. so it's a self reinforcing loop. the class right above the top class, when you anger them, they tend to stage revolutions. we saw that the american revolution and the french revolution and every other previous revolution, food cost about getting to 40 percent of disposable income. that's what we saw during the arab spring, which created the arab revolution. then you have the ongoing problem of a sinkhole of debt that is still gobbling up to global g d p by 10 to 20 times that number, which is not set to decrease at any time soon. back by derivatives in the quadrillion that have a net value of 0. so you put this all together and it's going to be a new year's eve like non other chopped top top top is what you'll say. member.
just compare the top 2 numbers there in normal times that the 9 percent just below the one percent get most. as you say, they've dropped versus one percent. so i say that's why you should look at coin. stacy has spoken. wow, that's the most obvious sign of neo fatalism. i've seen. we're going to take a break that when we come back, mar, coming your way. ah, ah,
it really is something that cause right on police report can in december 2020 a group of anti finishes, fill out a film crew access for 3 months. so like if people organization, if an idea that it must be a pose, that channel out the gate while they make their faces. but they can say what they believe in. we believe in helping our community. yeah, we believe that fascism is one of the major threats to united states has gotten proven. this is a chance to see who on t for really off in order for me to extract my 1st amendment right and say that my life matters have to be on to the teacher to that hallmark is we can't trust the police. we can't trust the government, we can't trust anyone except or so to protect ourselves in with
ah, welcome back to the kaiser report time now to return to our conversation with carl denninger of market dash sticker dot org car. welcome back. thank you max. all right, now we left off our previous conversation on the interesting point. i wanted to pick up on that. so, you know, we're talking about the american economy. capitalism versus socialism talking about the political economy, talking about how these to relate to each other, how they bleed into each other, how to separate the 2. you know, in the united states, we have free market. capitalism is kind of the model. but since the fed has been allowed to dictate interest rates, that is to say, price controls on interest rate, that's the say that interest rates are not determined by their free market. they're determined by a polar bureau of policy makers for 5060 years now. and since the fed post vulgar
as adopted the greenspan doctrine, which essentially means that no market correction won't be met with a massive flood of new money. you know, we've, we've entered into a different era and that era rewards meritocracy destroys the, the, the, the meritocracy that you one would expect from a free market. and it's now causing predictably inflation. now, is inflation transitory. carl? well, no, right? no structural. then that's what makes it so dangerous is that we have built it in 2 places in the economy that are going to be very hard to get it out of. one of the most important, and one of the points that i raised in my book, moved back more 10 years ago, is that behind every unit of g, d. p, of course there is a unit of energy. so if you raise the input costs on energy, on a deliberate basis by, for example, restricting the use of fossil fuels and say that we're all going to do this,
to windmills and solar panels. which by the way, use a lot of energy to bake. so then you have gone ahead and said, we're going to raise the input cost. everything that goes into the economy will, that's inflation. ok. because that inevitably comes out the other end in the form of price and was anyway around us. so one of the buy demonstrations 1st access to shut down keystone. now they're starting to shut down line 5, which is another pipeline. and that has been a flash point in northern michigan for oh, good lord for at least 10 years i, you know, every time i went up there i see the signs all over the yards and things like that . and it was rather amusing to see those people doing that up there because just on the other side of the mac and all bridge up in the you, an awful lot of those people are relying on propane and fossil fuels for their heat in the winter time. and so they don't have the privilege of being up there as
a chicago person with a lot of money. all you know will just come up here in the summer when it's really nice was 20 below 0. you're really glad you have a full propane tank. and so these, these cost inflation bill components that have become part of the government's mantra, along with constricting supply in general, have led to a spiral and as expected it takes time for to show up in price, but now it has. and so if you to stop it today, you just turn all the sauce, it's ok. we're not doing what a stupid thinks. it would be another year and a half or more before you actually saw the indices start to come back in. it's not going to happen immediately, even if you were to change course. what happened to fracking, you know, just like maybe a year ago or less that america was the number one energy supplier in the world for our producer. and did the magic of the fracking technology, is that still going on? i missed a, what's going on there? well, fresh. when that became the so called savior,
the world i pointed out to people that all you're doing by fracking is increasing the depletion rate of the woods. if you have this much oil, is this much gas in a particular piece of rock on the ground. if you frack, you get it out faster. if you don't change the total amount is there. ok? so if you continue to sink holes into the ground, provided that there is more resource to extract, you can get more of it, certainly by using that technology. but one of the things that i pointed out about 10 years ago was that we have a path available to us in the form of a nuclear technology that we've known about and been know how to use as the 1960 s . we refuse to exploit and that is the use of for him as a 1st of all fuel. in a high temperature reactor environment are safer than what we used today. and we could use the coal as a means to obtain liquid hydrocarbons. which is what powers most of our economy, whether we like it or not, we haven't done it. and so now we're in a situation where we're getting squeezed. prices are going up. that's what happens
when it gets harder. you know, you, you burn up all the cheap, loyal, all the easy to get oil. we're not oil, we have an awful lot of it left. it's just not cheap anymore. so the congress passed the one trying down a plus infrastructure about, was there anything in there for atomic energy as if that line just down? know that i'm aware of the fact that couple of them who are using things that are in there is number one, a pilot program to look at taxing people by the number miles they. i've read today, we do it indirectly. so fuel taxes, of course, if you have an electric car, you don't pay those. so one of the things that is likely to happen though, because this is the history of taxes, is that the fuel tax will not go away. so you'll get if you own an internal combustion vehicle, you'll pay twice. if you own electric vehicle, you'll pay once that's a thumb on the scale that shouldn't be there. but then in addition to that, we are also consider infrastructure. mandatory breathalyzer is built in all new vehicles, 3 years from now. the technology do that doesn't exist by the way,
but it's actually in the bill now whether it was in the one that passed. i'm not sure, but it was in the bill that was proposed originally on the subject of taxes. and i know this is really going to tickle you. the democrats have flooded the idea of taxing unrealized capital gains. ok. and then again, your thought, well, you want to crash the stock market a lot with real estate area and do that. you know, the problem that comes along with that is that of course, data will tax on realized gains, but you will get back dollar for dollar under unrealized losses, right? because that's never how it works. so today if you have a loss, you can carry forward 3000 dollars years as you know, as, as a carry forward until you use it all up. of course, if you list $3000000.00, that may be several of your lifetimes, right? before you can consume it all, a taxing on realize again, is one of the silliest ideas that i've ever seen in my life. because you want
people to make investments and hold them for long periods of time. you want to incentivize that. we try to do that by having a capital gains rate, as opposed to an ordinary income rate. we do a very poor job of it, by the way, because we let people cheat in all sorts of fashions. but making that worse is not to anybody's benefit at all you're going to do is have people sell every that was, you know, salary thing on the 31st of december and in that kind of environment. i mean, you may as well take against tournament because you don't know what they're going to be tomorrow. a line mosque immediately twisted that he was going to dump 10 percent of his tesla stock holdings are roughly 20 to 23000000000 worth. and it does that really the, the point of this, this initiative called well, i don't know what the, what congress thinks they're going to get out of doing that. i mean it's, it's one of the points that i've made several times in the past is if you text everybody that made over 1000000 dollars, 100 percent on everything they made over a $1000000.00. you could actually close the federal deficit for one year. the problem is,
is that the next year everybody would make $999.00 and then go sit on the beach or drink fight ice. because why would you earn anything more than that? you don't get to keep any of that. and that's, that's the problem with doing things like this is that, well, you could say, well, it will earn this much, but you're assuming people's behavior won't change. it will change. and in ways that are not to your benefit. so you're never going to get the money that you think is going to be there. it's not going to happen, but they're gonna, they're going to try and they're pushing it under the banner of let's call welcome . now, although now this phrase is being military is being a weaponized in any word that hints at true underlying discrepancy and injustice immediately becomes and you know, in the u. k l, in the u. k. kyle: i just was reading that trolling on line saying being mean to an aristocrat. think like put you 2 years in jail?
is that something like that going to end up in the us? no, we have a 1st amendment whether they like it or not. i don't see any way for that to go away. it's the 1st amendment actually allows you to a spouse. communism it doesn't allow you to impose it, but allows you to speak in favor of it. and boy, boy, do we have some people in congress that seem to think that that's just a lovely idea, right? of the 1950s, we actually passed a lot of criminalize that that was thrown out on 1st amendment browser, justly so well said ok, let's talk about the big global picture. some are here. so micro chips shortages. so micro chips are really the oil, the 21st century. there are shortages, supply line problems, and china, of course, looks like they're making a move on. so i want, i want is 80 percent of back micro chip manufacturing capacity. so that would be interesting. what tell us, walk us through the global micro chip market. karl? well, we did a don't thing in the united states. and so as the rest of the world, we allowed, i want semiconductor g s, m, c to become essentially the linchpin in everything is a processor. so, you know,
we all think of a computer is having a, c, p, u and it, because that's how intone and you would like us to think of those things. your phone has a processor probably made by clock on, but there are hundreds of other ships that have to be there for that thing to be of any use whatsoever. and they are in everything they are in your microwave. they are in your door lock. you have an electronic lock, they are in literally every piece of equipment that you own that have it takes power. it has a display or uses a button or whatever, have you. they're all over your car and is a huge percentage of those come out of one conglomeration of firms and one firm in particular, d. s. m, c, and time one. china has not made a mistake, has not made any bones about expecting that some day taiwan will be part of greater china. they've been saying this for very long time. and we allowed ourselves to hitch, basically hitch ourselves to a communist government over there. and that was likely
a very serious mistake. the u. s. military run and burns a lot, hydrocarbons you know, and if the price of fuel keeps going up. well, the u. i saw the pentagon effectively be less stranded, as they were in afghanistan with tens of billions of dollars worth of equipment that just left behind. can us even afford to keep their military machine going at this point with the gas prices and energy prices? the way that they're up on energy is not the biggest part of the component there. it's just we, we spend a ridiculous amount of money on very expensive weapon systems and technology that as we found out in bosnia and other places sometimes get defeated by a couple of guys with a $50.00 microwave that they still out of a bombed outhouse. so, so, you know, we, we seem to think we're so bright, we are to a point, but it is not going to be the defining factor for the u. s. military projection of power is just simply the amount of debt that we're printing off. and very similar
to what happened to the u. s. s. are united soviet union was, was essentially go into an arms race by ronald reagan that they couldn't afford. yeah, absolutely. this comparison to the collapse of the soviet union is coming up more and more and more. now, actually the one point being made is that soviet union effectively collapsed and fell out of a one story building or in the u. s. once it collapses, it's like falling out of a wanting story building. we've got about 20 seconds left. what do you think of that? is probably true. we have a whole lot more interconnectivity. we have to have to maintain our way alerts and they did. right. all they, all the school system and the transportation and things like that were up and running and people were living in their own houses by the government center. it was horrible, but it was also not like going completely bankrupt with a highly leveraged economy. as we say in the u. s. so karl dana, jerry over there at market dash ticker dot org. it must visit site if you want to keep up on the true economic stories around the world. thanks for being on the kaiser report. thank you, ma'am. have
a good day. all righty. and that's going to do it for this edition of the kaiser report with may max kaiser and stacy herbert mar, thank i guess carl denninger of market dash ticker dot org until next time a . i bought a water around the china seal island, that's in contention between canada and the united states, where the government has suddenly become optimal for lost or population years exploded. one of the most valuable fisheries that ever existed. suddenly you had me in canadian fishermen in these waters at the same time jousting for position in
tensions or high violence is bound to happen. this is the last land border dispute between canada and the united states. it could be magnified to the point where there could be costs that would be significant to post countries. border disputes don't go away. they just fester. something's going to happen. ah. when there are problems like the energy crisis, europe, illegal immigration on poland border or even when the wrong political party or politician winds. there is a culprit, always waiting in the wings. and that's russia. scapegoating. russia is the excuse used by failing western elite or new york. it's really what america is about ah,
when our mayor took office, he was elected because of his campaign on our city, being a tale of 2 cities, the haves and i have not. and those who have not are usually the ones who weren't being buried on hard i. the city is always wanted to forget about city is wanted to forget about the people who are buried there. it's wanted to forget about the fact that there is a potter's field that there was a place where difficult stories are hidden. the fact that we're using inmates to maintain this active burial site, where 1000000 souls are buried. where so much of new york city history is buried is documents of the inequality that exist in the city for centuries. ah, ah,
in a cannon and tear gas are deployed by poland. that continues to resist attempts by my going to store the folder from bella bruce in order to reach the youth of russian defense ministry. some cus, as hypocritical off the washington, criticize moscow for testing a weapon in space when it's done exactly the same. well, nobody likes to pay more, on average, we have the money to do so. as mainstream u. f. media outlets repeated, we claim that american fall better off on the joe biden despite inflation. hey, think a 31 year.