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tv   Keiser Report  RT  January 11, 2022 11:30am-12:01pm EST

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a crisis with we can do better, we should be better. everyone is contributing each in their own way. but we also know that this crisis will not go on forever. the challenge is great. the response has been massive. so many good people are helping us. it makes us feel very proud that we're in it together. now we have e cigarettes. i just heard that it was a how the alternative to cigarettes a, do we trust tobacco companies with their message that these new products are actually going to reduce these sugars are making the tobacco with the
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max kaiser? this is the report. you know, everybody is concerned about bitcoin being a ponzi scheme, but in fact, that's the only thing out there. there's not upon the game. it's an open source project built by volunteers. it's not a public, but there are a lot of policies out there, stacy? yes, max, we are coming to you again from mexico, and this is our last episode and mexico for so far this year 2022. we had to el salvador next, but i wanted to look at this headline from the web site wolf street dot com. it is not written by wolf, richter, who is our guest in the 2nd half, but he published it with a writer on his website. and the headline is called the problem with pansy's. no, he's not talking about the us dollar. in this particular case, he's talking about what he calls the ponzi sector on the stock market,
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which is the dot com to point know, but they're kind of service companies like pallets on. a lot of the sector that boomed during the pandemic with all the free money pouring into everybody's stock accounts and all the robin hood app thing, all the ones with of fictional sort of income. well, this is how he defines it. this is a whole grouping of companies that has no ability or desire to ever become profitable. instead, these businesses have focused on rapid revenue growth because the stock market has rewarded them for this growth, especially if there are no profits in reality. stock promotion is the core business of the pansy sector. it allows the companies to raise capital and fund unprofitable growth, while insiders dumped stock at insane valuations. now as, as ponzi sector, equities go into freefall, a problem has emerged, and that is the down rounds of max, right? so the underlying business model is traveling because of
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a lot of these companies for every dollar in revenue, or they're wanting to spend a $100.00 to obtain that dollar and revenue through marketing. for example, in the case of less a consumer product. and that obviously is the old joke about the guy who's trying to sell cookies at the bakery and loses on every cookie, but says he's going to make it up on the volume. right? that it doesn't work at the end of the day. the only reason it has perpetuated is that they could go to the markets and res equity. you could, the stock market was being fueled by 0 percent money. so you could go and sell stock to fuel your losing business proposition. and that's a ponzi scheme. and what happens is eventually like bernie made off and any, any other policy operator that ability to get fresh money stops. and so it's like a train wreck. the people who then have to come up with more money to keep you from having to declare instant insolvency. they're going to say, wait a minute,
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we don't want to pay the same valuation we paid last month, because it's now obvious that your access to capital is choked off. so give us a value that is more commensurate with what you really are worth. and of course that as a down round. so they're saying ok, we're going to have to bite the bullet and everybody put money last time, they going to be losing money. and then it starts a cycle of ratcheting down down, down, down like the dot com crash of 2001. the nasdaq, i believe lost 90 percent. they lost 5 trillion dollars, which is 90 percent of what the nasdaq was worth back in 2001, i know 5 chilling dollars is not a big number anymore. like it used to be back in the early 2, thousands, but back then it was really something big. so it's also important to note that bernie made off operated an illegal ponzi scheme he set out to deceive and defraud . this is a sector which he is saying, as pansy economics behind it, it's not,
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none of the companies are setting out to defraud anybody. they are offering a company service. they're often a product a service. and it's the investors who are valuing it at these ponzi sort of all the grandaddy of all this was amazon right. so going back to bad. com period amazon would lose spectacular buckets full of money every quarter to build this impregnable wall anti competitive wall that nobody could compete with them. and then jeff bezos started to report earnings finally. and now he's one of the richest man in the world so that everyone thinks their jeff bezos and everyone thinks they have the next amazon. but it guess what, there's probably not going to be more than one, jeff bezos with amazon, or can certainly be a whole nasdaq full of thousands of them. and maybe just losing money means losing money. right, and the article does bring up amazon and say that everybody tries to be amazon, and that's how they explain to their investors the, you know,
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the losses. but during this period of high inflation, they're starting to really question whether or not this whole business model of ponds economics as possible. and he also points out that the, the way these companies, these ponzi companies are going to have to grow, their profits is actually to shrink not to grow. and that's the opposite of what these sort of investors want. he writes that now i'm not saying peloton which he points out as being their stock prices down 75 percent from an all time high. he says it could go down further, 90 percent, because of the valuation is way over beyond what their actual subscription model brings. in is saying, i'm not saying that palatine has done anything illegal or immoral. i single it out because it doesn't seem to fit the model in most people's minds of a ponzi. yet it is many of the most successful, pansy sector, stalwarts happen, well loved consumer products led by people who genuinely believe improving the world. investors rewarded them for growing fast. so they did. now. patience is
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running thin, especially when investors are losing money on multiple ponzi sector investments simultaneously. logic says that pelettano cannot grow into profits in isa, shrink its way there. that's going to be a nasty and highly dilute of journey. right? well, there's 2 tier price being made there as far as shrinking your way down to sustainability . you need to show comparable earnings quarters or years which can only happen on a capital base. that is not being constantly inflated by selling stock off to fuel your lose money losing business. and so where is the sweet spot where you can actually show quarter to quarter earnings growth and on your business for most of these companies it's, it's that doesn't exist. they're going to go bankrupt just like the dot com era. many, many, many, many, many, many companies just got a squeegee to off the, off the playing board. we don't,
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we never heard from them again. and that's going to be the case with this era of wonder stocks that are field. i mean i saw a chart or something like 300 unicorns from a year ago when there were 30. so that's just basically a bath tub full of broken toys. and then the elizabeth warren and congress filled it with water. you know, liquidity is 0 percent money and all those broken toys floated to the surface until the bond market and inflation starts to rear its ugly head. that's like pulling the stopper on the tub. now, all the water is draining out and all the investors are looking and saying, you know what all i see are broken toys face. now, why would i put any money to any of this garbage? well, guess what? they're not going to, you know, you mentioned congress and that is part of, you know, we had mentioned the likes of bernie made off the sort of ponzi schemes that were illegal and set out with the intent to defraud is that kind of congress and the
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fed have engaged in that in terms of the ponzi economics of the entire stock market and the property markets. it's kind of a ponzi scheme is that they're pushing all this money with the intent of causing the asset prices to increase to make everybody feel good. and so that they spend more and they vote more and they vote for their party. and so there is that because you did see in the past year something extraordinary was just reported while we've been on vacation here in mexico. and that was that $1.00 trillion dollars was poured into the stock market this year from retail investors. and to put that into context, that was as much as the previous 19 years combined. that is part of the cause of the prices pumping. right. and if you combine that information with what we're talking about here is that these companies have no earnings. as a matter of fact, they have losses and they're just sustained by the illusion that elizabeth warren
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is that responsible for of stock price go up based on fee up money creation. now, when the illusion is popped and then people say, hey, wait a minute, these companies actually have no earnings. you know, you're going to have, as we've been saying, i mean, it's very principal, you have a crush. so that's what is called called a crash. so. a there's something else that this model kind of reminded me of, and that is, it's kind of the same model that empires go through. they expand, they because they have to grow because they have a, an imperial population who wants to live like aristocrats. they expand and expand and expand until there's nowhere else to expand to it becomes way too expensive to maintain that marginal unit of like empire at the edge and then it starts to fray. the costs is too high to maintain the costs of that one. more subscriber to get,
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you know, your, your investors happy, the same thing with an empire. and the same thing we're having with the united states, i think, is like in this guy's prognosis of that, these, these policy companies actually have to shrink to become profitable, is that's what always happens with empire. so they, they have to shrink to become profitable again. but as he points out in this article, pansies don't do that, they just expand, expand, expand, and then collapse. and that's what you and i have been identifying in the u. s. as this collapse of empire that we're seeing right now is for the same exact business bottles, same set up here. right? and you know, we were talking about b military industrial complex and the overreach of the cia and the colonial zation of latin america and breaking elections overseas. when going on with the john perkins model of confessions of an economic hit man, they ran out of countries to overthrow they overthrow 15 countries in latin america
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say one after americans. so for the past 20 years, the cia, it's been spying on americans and the tech companies have been stealing money from americans. so america is the new, banana republic carnosione. but now they've run out of americans because they killed a lot of them through drug overdoses. there's not a lot of americans left to steal from. so that's when the empire collapses. so the insider's selling on these ponzi sector stock market. so he saying it's just a, it's a stock scheme, right. it's a stock pumping scheme. and you've had the same over the last decade or 2. when you look at the most powerful politicians in america, the truck was the only one that's a boomer. all the rest are actually silent generation. they're older than boomer. and they've been trying to maintain this flow to this high valuation on their portfolio at the expense of the generation z. the generation millennium, i put this in the context, the amount of money that was stolen from pension accounts, by artificially keeping interest rates low,
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was $5.00 trillion dollars. so grandma grampa, they are missing 5 trillion dollars of passive income that should have been in their retirement account at 4 or 5 or 59 percent income. that was taken down by jamie diamond and his friends the near 0. so they could take that 5 trillion and do a pump. it dumps game in the nasdaq elizabeth warren, even though her and that one pelosi trade on inside information i make money on. they're complaining about the people around the companies that didn't have a free wanting to get their caching out with their policies game. and that's the end of empire and you know, goodbye. we've not going to miss you. don't shut the door on your way out. well, they need to shrink the empire debt in order to save the viable parts of the economy, burn the village, to save the village, which is the 18 to 45 year olds. those people, the number one cause of death, overdose the number to cause a dest suicide. that should not be happening. that's a failed ponzi economic model. britain did it right? they shrunk down, and now they're just, you know, hanging out and they, they don't care too much anymore. all right, we're gonna take
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a break and when we come back, much more coming your way with with what we've got to do is identify the threats that we have. it's crazy confrontation, let it be an arms. race is often very dramatic development only personally, i'm going to resist. i don't see how that strategy will be successfully, very difficult time. time to sit down and talk to world is driven by dream shaped bankers. and those with
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who dares sinks, we dare to ask in ah, welcome back to the kaiser report i max or time that turn to well rector of wall street dot com wall. welcome back, carmax. thanks for having me back now, you call it the most reckless fed ever be the federal reserve bank in washington, d. c. elaborate on why and how? well, the fed has still is still in refreshing interest rates to 0, and it's still printing money even though it's a slower right. them before. and it's doing so even while inflation is measured by
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regular c p, i is now nearly 7 percent in this measured by c p w, which is for urban wage earners. it's, it's over 7 percent. and there are no indication that this inflation wall somehow go away on its own. i'm in this thing has started for the flood gates of open. yeah, this thing is going at the fed is instituting the most negative really interest rates ever. and it's not really, it's brushed off and that's inflation search of the last 12 months. i've been ranting and raving about it, but if it doesn't listen to me, and so now we've got it, we've got these low interest rates. we've got this huge and surging inflation and the fed is now way behind the car. other central banks have jumped ahead of it now . they've deployed and make an interest rate high over the past few months. and
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so the fan is gradually coming to grips was or is really saying that it's coming to grips with, with the fact that this is not going away on its own. and this is just regular, somebody, it's just totally reckless to do it that way. yeah, it's totally reckless how to describe it. exactly. so the, and when the inflation comes in at these levels, the job of the fed, one of the only jobs, the said, the reason it was created is to raise rates that when inflation gets to these levels, when it's, when inflation was at these levels last time in 1980 paul volcker raise rates to 1516 percent. as a matter of fact, inflation starting hotter than it was in $1081.00 rate when paul volcker raised raise to 16 or 17 percent. so he, he was doing the job of what the central bank should do, and people say, well, gee, that must have been painful and yet was but a set the stage for the reagan thatcher. eighty's revolution, if you will, and,
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and a great space of growth. so i don't get it, i mean if you had, i just understand that they're, they're not doing their job and i don't understand how to describe it. do we describe it that there's only a few choices either day. as you say, they're just recklessly out of control b, there's some political machinations involved here and see, i mean, we have to consider that they might be under the control of a foreign power, right? because they're doing something that's completely anathema to the health and safety of america. well, the biggest beneficiaries were of this whole policy were, are the biggest asset holder. so those are maybe globally, but particularly united states. and those are the beneficiaries of this policy. asset prices have searched because of the fed policies and those that hold the most acids that benefited the most. so, you know, that's,
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that's war or the beneficiaries are now we've got inflation and inflation is hitting the purchasing power of labor and, and so people are paying for this that never benefit from it. and, and i consider this reckless, i don't, i don't know where the political on it seems like biden is going to have a huge, massive problem on his hands because of this inflation. and he's probably going to be begging the fed to raise interest rates and do something about this thing. because you know, and the white house going to get stuck with this. again, it's going to get aren't going to tighten fed up with, with this inflation thing that we've got now. so yeah, there is, some of these are some of the politics in it, but i think it was just motivated by money yet that wanted to, to, and rich baset holders. and this policy is called the wealth effect as an official policy of central banks. and particularly off the fed,
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said has disgusted many times in the past and papers. and so they have pursued this policy of the wealth effect making that wealthy, wealthy, or at work the wealthier than wealthy, got wealthy, you know, a lot wealthier and, and so now we've got this problem, i and, and it's not going away. let's talk about elizabeth warren 1st. second, she's blaming grady ceo's for inflation. again, the question is if you can add 2 plus 2 and come up with 4, she doesn't understand that debasing the money increases inflation. i don't think she's bad. cor someone who with a less than a 2nd grade education, i don't think she's dom, i don't think she's functionally illiterate and a moron. i mean, she has to have a few brain cells up there. it was. her story is she who she working for inflation is a psychological thing. in addition to being a monetary thing. and the psychological thing is that people are paying those
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prices. and we've, i've seen that in new and used vehicle market a year ago. you know, suddenly people are starting to pay crazy prices for, for new and used cars. and those are discretionary for purchases. you know, people don't have to buy a new vehicle now they can wait, i can drive what they have. most people can drive with one of the year, so this was discretionary, this was a decision they made to go ahead and pay those prices. so that psychological and that's when my fears about runaway inflation that triggered when i saw that i came out of the car industries. i watched it very closely. and so that's the 1st time i've, i've seen that that people, i absolutely crazy prices voluntarily. equally that shopping for a position to buy these vehicles at these prices. and i thought, oh my god, we're going to have a problem with the mindset has changed to whole mindset has changed. and what brock's inflation is, people refusing to pay the price, and that, that didn't happen this time. it was a flush with cash to form this money printing bench and companies of flesh with
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money. and they're paying the prices without, you know, without griping a trying to negotiate better deals and, and so they're passing those price increases on and, and yeah, it's in agree always motivates pricing decisions. but it's the resistance to price increases that keeps the screen in check. and that recess disappeared, satellites gone, there's no more resistance to price. it resembles pie companies are paying, consumers are paying, you know, everybody's paying and government is paying. and so now we've got this situation where there is nothing to stop. great. and, you know, great, it is just half what the equation you need to half the other half, which is resistance to higher prices. and that's good, that's fall in the way that's just disappeared. and that's what this thing accomplished. you know, it and the government stimulus in to some extent to, you know, they thank you story, any resistance among businesses, consumers to higher prices. and now we've got this price increase is not running
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while. yeah, i just don't get it. i mean, during the world war 2, the nazis air drop, british pound or english pounds in england to hyper inflate the economy and destroy the economy. you know, here, america, analyst with warren, are doing it to us for ourselves. i don't understand why that's not considered heresy. i don't good. now, in the meantime, the wealth gains for eli moscow authorized by 200000000000 since the pandemic jeff bezos. similar games the fed zone data shows that's the one percent who have gained from the pandemic printing. again, those assets are held outside of the american on taxed, and yet democrats continue to insist we need to print more. again, this is a strategy used in world war 2 to destabilize countries, not to enhance countries, so they're using the same strategy used by our enemies and world war 2 to 2 to destabilize america. is it something i missed something or is wildly printing money
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into oblivion? i good thing, i don't. well tell me. i don't think there's anything to do with foreign interference here. yeah, this is just a self my problem. and i, you know, i, i, i think everything is going out of whack now. and because of this dual stimulus from the federal government, and from the federal on, by 10 trillion dollars in 22 months of stimulus and fiscal and monetary stimulus and something is going to break. i mean, we knew that something big was going to break after this kind of massive stimulus and, and it broke. now we haven't, you know, grow and you know, i don't know how to, i mean the way to fix it is you crack down on, on, on stimulus, you know, he erase interest rates about the rate of inflation. you start unwinding the fence balance. she did bring up long term rates. i mean, the long term rates are substantially about the rate of inflation. i mean,
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mortgage rates of 8 or 9 percent. that's what would what cracked on, on inflation. yeah. but that's not going to happen. so right now they're pussyfooting around it, you know, they're, they're going to raise a little bit next year maybe, and then maybe a little bit more you asked of that and, and you know, it's not going to be enough. and so there's a flash, it's just going to keep on dragging on the way to return to normal to raise rates. i mean, there's a great video of may in rotterdam from 3 or 4 years ago, pleading for the fed to raise rates to stop the insanity. it's gotten millions of years around the world that the answer is not. it's not a secret that the way to stem it is to raise rates. that's what, that's how the system works. it's like if you go to the barber, because you want to get your haircut, there's only one thing that's going to happen at the barbara, the barbara can cut your hair. the barbara is not going to give you a foot massage to help you cut your hair. right. i mean, it's a very axiom paddic. it's the truth. there is no equivocation. wall rates now. it's been clear for 567 years. rates have got to go up, and if, by not doing it you're,
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you're causing hundreds of thousands of americans to overdose and then commit suicide. i will let you know. i mean the interest rates and says that is probably a little bit more indirect than that. but, but definitely right, has never been this allowed to begin with interest, right. so there's never been below the rate of inflation. inflation was running at 2 percent plus, you know, based on c, p, i. so short term interest rate should have been about that. and then war for little while and then again and long term interest, i should have been much higher than this cost a whole bunch of problems. and since march 2020, of course, the problems have gotten a lot worse with this huge bout of money printing of this are interest rates. and it's, it's global. you know, the, it's hard for the united states to raise interest rates when they have a major economy, such as in the euro sound and in japan and elsewhere,
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repressed interest rates this year on or into the negative. you know, they have to raise their rates and they are responsible for the big issues. we've got. inflation is a global issue. now asset price inflation is a global issue. and so it's in response to the central banks around the globe. and so, yes, lots of central banks have already started raising rates megger steps. so the big ones have not, you know, the, the bank of japan is stopped. key in marketing made as credits, i'd stop printing money. the e c. b has now finally decided to cut in half it's money printing and the fed slowing it down a little bit. but yeah, they have raised rates that need to raise rates together. you know, they need to raise and bow off. and i mean, inflation is even coming to japan and that's amazing, but it's happening right now. well, we know those banks will start printing again. so. all right, well thanks so much bring i kaiser report. thank you max. all right,
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i was going to do this addition of kaiser report with may max kaiser and state or thank are guess well for rector. until next time i'll ah join me every thursday on the alex simon, i'll be speaking to guess in the world politics sport. business. i'm show business . i'll see you then. mm. now we have e cigarettes. i just heard that it was a healthy alternative to cigarettes, and do we trust tobacco companies with their message that these new products are actually going to reduce these sugars are making the tobacco up into the workforce? while our officers are facing in increasingly dangerous environments,
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we are seeing a growing debate about so called warrior cops, a term that i've heard in the militarization of police. this is an app vehicle we acquired through the 1033 program, very free program with the government program that funnels military property that is no longer use to local law enforcement. we're building an army over here and i can't believe people aren't seeing those thing an agency allen with terrorism here because it began appealing that ahead. you have to deal with our practice, who you putting in the uniform of the beds is a powerful thing from time is like money in play tricks and people mind they think they got bad notice, but what was out the door very bad trends are common. good news. you have job security because the world desperately needs what you have to get in touch
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with tonight says eyes turned to brussels for the next round of russia. security. talk to the west. we look at the groundwork that's been laid over the last 24 hours for it. more problematic partying for the british prime minister. then it leaked email is revealed a 100 that an extra stuff were invited to a boozy get together during the 1st national loft. the ramifications of that coming up, plus, ah, a sprite in germany do another round of demonstrations against strict new cobit measures. a hello, there, life mart international. well, the central mosca, welcome to our world today me.

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