tv Keiser Report RT March 16, 2021 4:30pm-5:01pm EDT
i am max kaiser this is the kaiser reports. let's check in with stacey. well max the fed. succeeding at what it wanted to do according to this headline from wolf street dot com dollars purchasing power dwindles to another record low the fed is getting its wishes so the latest data shows that durable goods inflation is at 3.3 percent food inflation has a 3.4 percent and the consumer price index rues 1.7 percent in february from a year earlier the fastest year over year increase in 12 months re and the government is claiming that in 2020 inflation rate was approximately 1.6 percent and they are
estimating that for 2021 the official rate of inflation will be about 2 and a quarter percent now if we were to look at the way inflation was calculated just 20 years ago without a lot of the what are called donek adjustments. what we find is that the actual rate of inflation is over 9 percent so that chart from wall street dot com is showing clearly that your purchasing power for the money in your pocket is losing at least 10 percent per year in purchasing power that means you if your wages are not increasing by 10 percent a year that means your standard of living is dropping and what we have united states certainly is a struggle to bring in quote unquote minimum wage to create. livable wages the clearly those wages are not are not expanding so that quality
of life in america in aggregate because of the money printing which reduces purchasing power is causing the standard of living in america to go down that is irrefutable and anyone who debates that is not looking at these very same thing clear numbers yet we're going to look at that chart you mention from wall street dot com that comes from data pulled from the bureau of labor statistics which shows that decline in the purchasing power of the dollar of course the money spigots were opened and poured all over the place last year in 2020 across the board so there was a huge amount of increase of money supply number it wages went up by 14 percent last year in income went up by 14 percent a lot from government transfers so a lot of people got a lot of money a lot of it however was dispensed with this p.p.p. loans which went to multibillion arison billionaires and people worth hundreds of
millions of dollars got to scoop up millions of dollars from the taxpayer so there was a huge amount of money that went out but house prices went up 14.4 percent as we covered food prices or the supermarket prices are going up by over 5 percent some products and that's where that he donek adjustment comes and said like beef was up. 180 percent last summer of course then people say oh you know the fed academic you know economists will say well people stop buying the beef and they buy chicken or pork instead and therefore inflation has actually gone down not risen so that the fed's mandate is to look at wages and prices right so here are the 2 ingredients they're looking at they want the purchasing power to decline they want that that's what they want they want inflation. and the wages are always a difficult thing because they don't want those to rise they never want those to rise they want prices to rise but they don't want wages to rise. the politically
incorrect term for consumer price inflation which is what c.p.i. tracks is quote loss of purchasing power of the consumer dollar and thereby the loss of purchasing power of libor denominated in dollars and the purchasing power of the consumer dollar has dropped to a new all time low in february according to the b.l.s. data today so here is the chart purchasing power of consumer dollar index value not seasonally adjusted so you see it from 2007 declining declining to climbing as of course since. you see the big dip at 1st when the financial crisis the great financial crisis started and money printing started to kick in and they slowed it down for a moment but as you see the decline you persist in power continues the value of your labor continues to drop essentially what you can file with your drops yeah right what you can buy for your labor drops right so that 15 percent incoming crace
you just mentioned is distributed in an equally let's call it so that you've got this multiplying effect on the asset side of the ledger so for housing for example that's going up by considerably more the probably the best mind looked at this is michael saylor micro strategy who points out quite clearly that if you look at an inclusive aggregate of everything in the economy that's the average person is going to encounter including health care housing education of food energy right down the list the actual loss of purchasing power inflation per year right now is between 15 and 20 percent which would map the the amount of money supply per year now that's being pumped up into the system so no labor is going to keep up with that and only people who are speculating in the ass of market have any attempts to keep. up with that and that's why we see so much money going into bitcoin because
it's a direct escape valve away from all this and same money printing but the actual experience of day to day prices now it's no longer easy to hide the fact that food and energy and housing are starting to meaningfully impact everybody in america who's not who's not of let's say the 100000000 and above class where they've got a hedge in terms of assets so that would include 99.8 percent of the population well it's going to be anybody who owns any assets including especially a home so if you earn $75000.00 a year and you have a $400000.00 property and it's gone up 15 percent this past year you've made a lot more than what your stimulus check was especially in terms of how our financial system works is that your equity and the property goes up your ability to
borrow goes up and buy other assets going up in value so those who don't own any property are as you pointed out in the last episode of course further and further away from being able to acquire an asset from which they can then leverage and accumulate more assets but of course we do have the situation whereby the income went up. but your costs went down significantly because there's a rent moratorium on pretty much nationally mortgage moratorium on pretty much nationally that's part of the reason why our house prices are going up so much is there something it's close to 14 percent of properties are in arrears on their mortgages are not paying at but they can't be kicked out so if this goes on for another year and they keep on extending out the this moratorium because who knows what happens when that bill comes due the rent hasn't been paid by some people for over a year now so. luckily i mean our largest landlords in america is black rock is number
one then we have warren buffett these are more time with my billionaires so they have plenty of money but they're not getting paid so we're that comes into play and what when that cracks who knows like. that that could be a next catastrophe but they seem fine right now maybe blackrock is being actually you know let's not say them but maybe some of these landlords are being paid through that same taxpayer facility of these p.p.p. loans and stuff like that there's programs from the taxpayer to pay for this the same money printing that makes the rent be paid by somebody different and then you know this the the data on gold because you know how do you how do you protect yourself during these times writes how do you acquire the assets that the fed or the government or it's going to allow to go up in price and can't stop from going up in price right so we've talked over and over recently about the bond vigilantes
no longer can exist we talked about the gold bugs that used to also cause the government to be honest like they weren't allowed to print so much money they kept integrity to the money printing machine well some data on the gold situation because like $1.00 trillion dollars is now just printed on this past week and what does gold do. down right slowly then all at once big queen flips gold at $550000.00 to keep your eye on that but just looking at the comparing bequeathing to gold over the last 12 months gold is now is 0 percent is falling back to where it was at the beginning of the pandemic beginning of 4 trillion printed by the government last year 1.9 trillion printed today so that's 6 trillion dollars it's been printed in those 12 months 6 trillion the market cap of gold is only $8.00 to $9.00 trillion so it's printed all of that nothing hasn't moved between is up 574
percent probably about in line with money supply growth or proves again that the price of gold does not enjoy a free price discovery. whereas because it does so because it is proving what many have said for years going all the way back to the gold antitrust action committee when we 1st started talking about them 18 years ago the price of gold is manipulated it doesn't have true price discovery and because it doesn't equate to showing you what the money printing stilling now when you have assets on your books and all the money printing is allowing those assets to go up in price is that good i mean you can't take your house down to the grocery store and eat it right it's good because you can borrow against it. and if interest rates are near 0 then you've got the ability to print your own money remember living in the u.k. during the housing boom people had their house tied to their bank account and every month the value the house was said to go up another 2 percent and the bank would
let you borrow another 2 percent right out of your bank account and charge you a low for fairly low rate of interest and so interest rates have created a divide and if and really the grounds for a new civil war i think because those who are allowed to get those 0 percent interest rates are get them through political favoritism not through merit those who are being subjected to high interest rates and and being cut out of the asset market it debt is also a political ploy by those in power to get more for themselves and to destroy the fabric of the economy and that's heading into serious trouble well i will and this will wrap this up on a more positive note in terms of what this also could indicate in terms of decline versus gold because the final chart as well as the queen at a new all time high versus gold so it's now $33.00 ounces it cost to buy $1.00 big quine and that is the transfer of what paul tudor jones said why he's a gold investor but he's also a big queen investor because bequeathing is
a bet on the future of humanity and the future of human ingenuity and if we are you know part of the. problem with the global financial system especially in the us disintegrating at the moment is the boomers dying off and their ponzi scheme disintegrating whereas the millennial generation see coming on line you know they're the big question or is there this is them choosing to not try to hold up the boomers ponzi scheme they're saying forget that like what why go into like why rack up $150000.00 in student debt so that grandpa might sell his house or the fictional price he thinks he could do it i'm not going to do that right. it's one country but 2 systems chains were rising up before all right we're going to take a break they want to come back much more coming your way.
welcome back to the kaiser report i'm max keyser time now to turn to end dependent jail political analyst nick jam bruno welcome back great to be with you max the u.s. government just printed another 1.9 trillion dollars stimulus on top of the 4 children dollars stimulus last year and yet gold is flat year on year oh what's going on. yeah a lot of stuff is going on 1st we have you know people throw trillion here trillion there yet to really understand how big a trillion is think about it you know how long a trillion seconds ago word is back 230000 b.c. so if you are around 30000 b.c. so if you're talking trillions in how big a trillion it's in comprehensibly big why hasn't gold responded i don't know but
it really it really should be between us responded a lot of huge leaks as we record this point is up more than 10 top way more than 10 times i don't have the exact number off my head but it's more than 10 times since it a year ago when all of this even more money printing started it so it looks like a lot of that store of value demand has been diverted to big point i mean look at that point market changed in over a year that's a lot of store of value demand that might have otherwise gone to gold so i think big queen is a part of the equation and one of the drawbacks of gold of course is that it's not really that portable you write for the international man what's been your experience trying to cross border with some gold compared to decline well i don't try to do it because i've heard too many horror stories crossing borders with gold even a small amount so i personally don't do it big point declaring that you know how do
you know somebody has bitcoin they just can memorize 12 words and if you can memorize 12 words you can store billions of dollars worth of value so there's no comparison there yeah it's a fact is a pick calling is kind of taking market away from golf it's taking market away from fab money it also takes market away from the so called alt coins and i guess the 2nd biggest coin or one of the biggest old coins out there would be the theory i'm . and you've written a piece for casey research quote a rube goldberg of buzz words 7 reasons to sell all your theory him today and by bitcoin right we don't usually talk about all kinds but this piece is pretty compelling tell us about it. yes well a lot of people who are new to the space they lump or don't know about the space they want bitcoin in with the theory and these altman's but the reality is they're
not even in the same universe it's completely inappropriate to want them in some oh i don't think anybody is looking at a syria mess and store of anybody serious looking at a theory must store of value so what i did in this piece is i just took a deep dive homme it and looked at what is that what what really is it and what attributes does that have and compared them to big point in short period is not immutable it can be censored it has a monetary a flexible arbitrary monetary policy that is hard audits and is controlled by developers who prefer inflation. it has its network decentralized its network infrastructure is centralized into this company called info insurance so it's not the centralized in the same way as bitcoin is it is unclear use case because he has a crystal clear use it's a hard money monetary system that is accessible to anybody and controlled by nobody
but what real world works bitcoin works in the real world and it's probably mankind's biggest problem which is storing and exchanging value that's what bitcoin solves what is a theory. as far as i can tell i haven't seen it anything built on a theory him that has added any kind of economic value or solve any kind of real world problem now it's clearly a pump and dump scam you know they have this enormous pre-buy which is something again you know if i want to claim but with a theory i'm they've got tens of millions of these coins lying around and then they go on these massive pump and dump schemes that could be i.c.'s it could be i. it could be and now you've got this and after a craze it's just clearly a money laundering pump and dump in theory and lead. it looks to me like money laundering and i believe last i checked that's illegal but there's a lot of people who are vested in it and the it looks the pretty mind right it's
pretty big. yeah well that if you're him pretty mind there's a lot of problems with this i mean this is similar to do you know if people don't know basically pretty mind is something where people who are creating cryptocurrency create units of the cryptocurrency before it's mind the 1st block is might be just traditional in how new supply is entered into the system so a theory i'm had an enormous pre might it's very similar to the shenanigans you'll see in the penny stock market with pump and dumps where insiders get them so paper them up paper themselves up with cheap paper and then dump it on to the public now the thing with the theory i'm that is problematic with this is it's ownership centralization. ownership of the theory and has been and always is and always has been centralized in so this group of people who participated in 3 months and to this day had a pretty mind i think it exists as it is to the current y. of a theorem is over 60 percent still to this day but there's another problem with 3 months
is that there are effectively offerings of on registered securities and that tends to get the attention of government agents. and yeah you know a lot of people know that because in cash and declines to toe shish and are exit scams written by you know created and managed by narcissists than megalomaniacs but a lot of people don't realize how bad the theory a mess and how risky it is and what the probability is of them getting shut down for selling unregistered securities but people do silly things and so i think that would fall into the category of silly things now with go all the central banks of the world have all the pre-modern you could say they own most of the gold regulate paper markets i watch the prices controlled and you know call that a lot of ways is is another all to coin at this point it's got so many job acts which were not obvious because until becoming came around people that really
focused on the fact that hey you know what gold is actually a horrible story. value in a medium of exchange as a medium of exchange is quite awful as a store of value it's not it's not as bad as khoury shells or storing old telephone books like peter schiff does he's got a whole warehouse full of old telephone books that i think his whole wealth is stored in but you know it compared to cohen it's really quaint falls fall short. now would you ever use goal is ahead. in this year a government or central bank i mean what were your big k.c. is big on gold is c. totally going to switch over to pick point entirely now r.'s or is casey still stuck on gold nick. well the thing is is that what we're interested what i'm interested in is money what has the best monetary properties were not for ticket i'm not particularly wedded to anything i want something that has the best monetary properties and i want to look at that with open eyes and analyze that i'm not
reading off a bull completely but you're right looking going down the list of all the attributes of money and money is not that hard to understand money is just something that stores and exchanges the well that's all it is it's not complicated so what look at the attributes of gold in bitcoin and analyze them on its ability to store and exchange value now most people can't wrap their minds around this because gold has really never had any competition for thousands of years the human history now it has a serious competitor that could destroy it and the most important attribute of gold is well you look at the history of money the history of money is the hardest money wins big crime is now harder than gold it's better at gold than go and what i mean by hardness is resistance to inflation lot of people think hardness is something tangible it has to be a metal it has to be something physical that's not what hardness needs hardness
means hard to produce so in other words resistant to inflation and why was gold money always it's because gold was the one thing the one commodity that was most resistant to inflation that's what made it a good money because and how do you measure hardness you measure hardness with the stock to flow ratio and that is what measures hardness and bitcoin now is harder than goal according to the stock the flow ratio so in that category gold's most important attribute because it beats it wow lucky met you hate being wiped out by now anyway neck. here in argentina and the inflation rate just at 40 percent which is the definition of hyperinflation women talk about argentina for years we turned on a lot of people and went as iris around argentina to put coins save their lives probably thousands hundreds of thousands of people what's going on in argentina is
about to crash forget. well you know it's nothing new under the sun misses a regular cycle what happens in argentina almost like clockwork they elect politicians that promise freebies the politicians print money to finance the freebies in the currency collapses and then they start the whole cycle all over again it says predictable as the seasons of the year here and that's what's happening so arjan signs are used to it most are very fluent in having alternative ways to store value and i mean look at the argentine economy the argentine underground economy unofficial economy is huge relative to the above ground economy so yes it's unfortunate inflation hurts people it hurts the most vocal all normal people inflation is criminal in my opinion even one percent is toxic it's a cancer one percent inflation 2 percent inflation as they want to have here in the us and europe that's cancerous shivs no inflation inflation is
a reduced on. involuntary redistribution of wealth towards the people creating the month's horrible thing so yes that's what's happening the good news for argentines is they're used to it they've seen it before all right now we've got about a minute or so tell us about your concept of oligarchic money you've been writing about it what you mean. well actually i was referring to worker lewis who wrote about what it's all like bhooter it said about bitcoins bitcoins hard this is where he showed his preference for inflation he called the hard cap on bitcoin all of dark vitali the founder of syria and what parker louis said is that it's actually he's got it completely backwards and version of reality it's not all dark what you have is a level playing field when anybody even the poorest person in the world could be on
the same level playing field as these new york hedge fund billionaires by owning a piece of money supply that nobody can alter your owning 6 piece of the money supply that's not all of our cake that's very equal that's if everybody has equal rights there's no cantillon effect and bitcoin in other words so i think vitali gruden had it exactly wrong oh yeah well if you look in the dictionary under charlatan barry is the tally when is that all the unicorn t. shirt all right nick thanks for coming on the kaiser report as always we got to come down there and visit you in argentina soon i hope thanks again for being on the show they thanks max we'd love to have you all right well that's going to do it for this episode of the kaiser report with me max keiser and stacy herbert like to thank our guest nick jam but oh no you have to say it like that but it sounds better and so next time.
i'm going to let him but i don't catch him in there and keep an. eye and flew to china for a trial fall down there and. living. below the world and i was going on a show little subtle. and mild. members of the hey how not doing . this whole fool. the i knew you didn't pay off the term interior has said. he she ought to have a. model for the name after the couple fucks around mr hates it for jim and then boy i hope that our family in the course. of the world.
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