tv Keiser Report RT May 6, 2021 5:30am-6:01am EDT
so max kaiser this is the kaiser report well you know of the whale is turning to right back to where we were 100 years ago let's find out more from stacey max it has dawned on me that the roaring twenties are back yes history is actually seemingly repeating itself in fact not just rhyming so you know incomes are up 21 percent since last march and up 33 percent from 21000. consumer spending highest ever stock markets all time highs and let's 1st look at charlie monger he's a partner with warren buffett over at berkshire hathaway and of course is from the 1920 s. he was born in 1924 so he will remember as
a little child baby flapper you know that the wrong twenty's charlie monger on bitcoin today quote i should say modestly that i think the whole them development is disgusting and contrary to the interests of civilization she owns banks that launder billions per year and have been charged criminally give me a break says anthony promptly i know right right palm makes a good aftermath of their you know 75 percent of the berkshire hathaway portfolio he break it down is banks and the banks are the 1st in line from a central banks to get all the bailout money member berkshire hathaway's been bailed out twice without those bailouts they would have been bankrupt long ago they're under performing even. with the bailouts they're still underperforming the s. and p. and nasdaq for more than 10 years these guys are their bombs their charity cases right so then you say income is up 30 percent to be clear that's not wage that's
income so it's people getting minimum wage plus government transfer payments that are being stuffed into their mailbox as well charlie munger and warren buffett their income is by billions because a study getting $800.00 or $2000.00 from the government they get $101520000000000.00 from the government but they're no different then the because they've never invented anything they've never built anything they just sit in their chair omaha nebraska and wait for the government to send the money and that's all they do in their bombs and their parasites the thing as it does expose his statement doesn't expose 1st of all he said you know big claim he hates the success of back line and with the success of does is exposed the entirety of the lie of the financial system of weights he has benefited enormously but it also shows too that for all their smarts and all their value investing and looking into digging into the books and examining the books of these companies and meeting the c.e.o.'s and
doing all the due diligence like that's a waste of time and money in a roaring twenty's when money is being thrown out the door like spankie back in the twenty's and the little rascals throwing money out the window 'd well that's what the government is doing and so you don't you don't need to be any smarter than a monkey and some people say charlie munger kind of looks like one but you know the fact is you anybody can make money and that is shown in as you mention warren buffet buys more of his new favorite stock berkshire hathaway but is a net seller on market as s. and p. $500.00 set record highs and the buffett indeed. ada raises the alarm total u.s. market cap is now equal to 226 percent of us g.d.p. way above 1 the 100 percent that buffet sets as his bubble threshold so over twice
as high anybody who bet on the bubble is winning of course says value investors are the sort that will get out of the market thinking of this is a bubble you know he would have got out at 100 percent certain scaling hour and it's now doubled since than but this is the roaring twenty's right well this is where it gets permission to send ugly in the fia money world war monger and buffett because they use the billions that the government gives them to lobby the government to do things like repeal glass steagall under the clinton administration or to get rid of the laws that prevented companies from buying back their own stock which is what happened under reagan because it's patently market manipulation and stock manipulation to buy back your own stock and when you can do that with money that the government's giving it for free or to 0 percent interest rate here clearly in a predatory position that's bankrupting large swathes of the economy and causing unemployment
and causing these deaths of despair the number of opiate overdose deaths last year up 520290000 thank you charlie and sank you warren obviously here they have like $150.00 more than $150000000000.00 just sitting there like a melting ice cube and their treasury just sitting there doing nothing because they look around and they see nothing worth investing and but this is the thing and of the past 20 years since they did lobby for the repealed last eagle the hollowing out of the u.s. economy and. in fact he also mentioned at this point by the way he was at the shareholder meeting this past weekend that. she you know half way j.p. morgan and some others were going to take on the health the health care sorry the health care racket in america and fee said something along the lines of well this racket is bigger than us right it's 17 percent of the u.s. g.d.p.
and there's we couldn't they these powerful multi-billionaires money in the financial sector couldn't make inroads into it because of their of the predatory those sort of motes that they set up around their racket very telling that buffett referred to america's health care system as a racket and you know a lot of people describe america as an emergency hospital waiting room disguised as a country yeah well i thought i might have thought words in his mouth by saying he said iraqi but that's how i read what he said is that it was a total racket that even the likes of he could not i rather thought it was something he mentioned that the health care 70 percent of g.d.p. yet it's a huge percentage of the global g.d.p. and that too. he did refer to old copple a that it was hard to move that it was hard to make an impact on that it's an entrenched oleg off a list cartel that 17 percent of g.d.p.
want to ship by by any industrialized standards country that should be more than 3 or 4 percent of g.d.p. all that remaining trillions and trillions of dollars goes to the replaces kleptocrats at the top who are literally stealing trillions and this was the primary reason america's become a laughing stock in my view well i'll tell you who's laughing that is the people of this huge nation and they are celebrating their steamy ways and it is the wrong twenty's for the people so let's look at these. wrong 20 sort of numbers this is amazing free money stimulus blowouts consumer income and spending on goods for a glorious what the heck chart of the year this is just for. freaking nuts says well factor it explains the record trade deficit bottlenecks shortages and inflation pressures among other distortions so what the heck overshoot personal income all of sports says this is
a remarkable now this goes back to 2015 and this is a personal income that includes the government transfer is but like these are normal times these are the good times right markets we're hitting all time highs every year all throughout the 20152016171819 and during a global shutdown all production shut down here here is the income of the of america collectively all 330000000 people this is the household income everything included right so to understand why this is a problem and why the comparison of the 1920 s. is important because at the end of the 1920 s. you had the crash in the depression and what fuel of the speculative bull market on wall street in 1920 s. was that or margin if you could buy stocks for $0.10 on the dollar and this ballooned up to unsustainable levels and it crashed and we have a depression so how is the debt you already mentioned that this 200 percent debt to g.d.p. debt stock market valuation 26 percent right so that's one indication of how much
debt it's way past where i was in the 1920 s. how about the federal reserve bank where the federal reserve bank they say they've got something like 7 or 8 trillion dollars of the bass that's on their balance sheets the resale value of those assets is is is maybe maybe $0.50 right because that's being very often right because they technically those those assets have 0 value they if they put them on their books at $0.10 on the dollar but they had to buy him from bankrupt institutions they would have had to declare bankruptcy like j.p. morgan instead they swap to the insolvent junk on their balance sheets for fresh treasury bills liquefying the banks like warren buffett that's how he made his billions stealing from america and they put it on the fed's balance sheet and so. such time as it like is a huge warehouse full of a lot. of nitrate plutonium in $13.00 sitting next to a fireworks factory right at some point those 2 come together and go boom
right but the ordinary people you're going to love this is the phase of a ponzi that you love you don't say no to this right how do you say no to that your income collectively everybody around you was 19 trillion and 21000 just 2 years ago today it's 20 over 24 trillion right i think that's a lot more money 21000 trillion up to 24 trillion best income across america a lot of it printed up so you know sold to the fed you know the whole banana republic started thing here is the consumer durables purchases chart again here's going back to 2008 that's a financial crisis when adepts look at that what the heck chart of durable goods these are like washing machines refrigerator isn't all that sort of stuff. so all that money is being spent by a lot of people a lot into the savings but
a lot into these durable goods and that's why you see this huge congestion and the freight business all the goods all the money being thrown like spankie at the window of the little rascals at china here trying to take my money if china sends over you know a refrigerator for you were watching the show the income went from 19 to $24.00 trillion $1.20 that's 5 trillion dollars we know from tracking the. cargo ships between here in asia so that $5000.00 we sent to china. essentially a lot of it because especially because in the past year a lot of services which you obviously are harder to export but you know so if you get a haircut school rent all that sort of stuff that's counted under services people have been paying their rants they haven't been paying their mortgage i mean even that income doesn't account doesn't count for the fact that you haven't also been paying any of your debts you haven't been paying your mortgage or rent or your school loans like there's been more tory and so on all of that so they're doubling
you like wealthy there's a double roaring twenties like this is just like because it's like having the roaring twenty's closs all those programs of the 1930 s. of the you know of f.d.r.'s programs of the new deal oh i get it you're saying so you take all the new deal and you combine it with the twenty's were in chinese speculation and debt yes put it together yeah we have to come up with something different than the roaring twenty's it has to be something like a psychotic 20 because like you know it's going to crash because that's what happens a crack up boom and the whole thing collapses like i'm in minsk he says and i'm in this if course saw that coming and still lost everything in the great depression so you know there is that but here they're saying like oh this is going to crash so we might as well just implement the programs now it's to. get it they're doing they have to roll out half that's why joe biden can barely f.d.r. and they refer mystery letters down to whatever his middle name is as jay something
big they think he's like a l.b.j. f.d.r. and j something big so they're combining the they're taken the worst qualities of those 2 decades and they're combining it into one decade called the psychotic twenty's we asked so we are like in the wrong twenty's literally and figuratively and. this could have a lot further to run we could out to the 1920 s. we already stock markets are already more overvalued than they were in 1921 by many different all the metrics that matter and so we're already past that how do we double that from there like warren buffett kind of based it like his theories of like once the stock market capitalism. there's only one thing that hasn't got a. and if you're a paper staff twitter you know what it is that's gold gold yeah yeah and that well that's the reason why we can continue this bubble by the way for
a longer and bigger than what's happened in the last roaring twenty's like this is the wrong twenty's right now it's repeating but the it's going to start to ryan instead because it's going to get way bigger while this is often like on the way this could be the best year ever say to you for the 2nd half a lot more coming your way. right now all the. people who are overweight or obese it's profitable to sell through this he's crazy and sugary insulting and addictive it's not at the individual level it's not individual willpower and if we go on believing will never change this obesity epidemic that industry has been influencing very deeply the medical and scientific establishment. isn't what's driving the obesity
epidemic it's corporate profit. pisces. and there are things i would say i'm not a mirror to but americans help really. war to cure the depression carson show should concern prosperity of course i'm sure . for the for all of us the whole world it would end it. historical really really ever since world. or 2 to foment the cold war against russia against communism. so you call me. close to. the
world war 2 has been the story right oblique angle american media and that's because they want to diminish the rule russia. and stone who actually defeated hitler. welcome back to the kaiser report imax kaiser time now to return to our conversation with legendary james turk of gold money dot com james welcome back thank you max ok to follow up on our conversation about the new numeric nummi are needed on any economic system you need hard money you need a unit of account i want to hypothetically put you in a radio control tower at the airport and the airplane is about to come in so land
and ready hasn't james james i need a runway can you give me a runway and your answer is well walk walk run runway would you feel like landing on. does that make any sense and is that what jay powell effectively is doing as leader of the fat. that's a good way of describing it max you know it gave me chuckle but yeah you know new rare is a fixed unit and that's what you need in order for your calculation brotherson ounce of gold announce a silver but you know some kind of precious metal to determine how you calculate the price of goods and services that's why i always like to use this example of you know kudos over the last 70 years today an ounce of gold buys the same amount of crude oil it did 70 years ago but it dollar buys you know just a fraction of what it was 70 years ago because of inflation so you need that numerary without it your lust just like that airplane trying to land you know
there's a great debate recently between frank just try and michael saylor of micro strategy is the goal versus bitcoin debate and one point that came up which i thought was interesting is that frank in talking about all the saying look i've got 10 percent of my part follow you know in gold as a hedge. and michael saylor was saying look the reason i buy that and the reason he's got that in there is a head is because of all the money printing and the irresponsibility now i think we're talking about here michael saylor saying look the reason i own because i own is it's more than a heads it's actually a solution to this problem. you know what here yeah it's a good way of looking at it you know. he said then the other time we were chatting out earlier that you know we've known each other for 15 years and you know back years ago when become was 1st getting started. you know you and i had a number of conversations and it took me
a little bit to get over the hurdle of what it was but you know when it reached $100.00 i became a believer that you know was a and i've said it in subsequent interviews. that can be found on the internet that it was the curse of the future and i still believe that because it is proven to be an escape currency it's a way of getting your purchasing power into something that's relatively safe but i'd like to make a point you know comparing it to gold because you know people try to say that they're. antagonistic to one another but in fact they're complimentary to one another because the weaknesses of gold are the strengths of bitcoin and the weakest is the big question of the strength of gold and by that what i mean is that you can hold a gold coin in your hand you can't do that with the bitcoin but gold because you can hold it in your hand can be confiscated but you can't confiscate becoming because it's distributed throughout the world in the internet so the 2 are really complimentary to one another and if you feel like you need to own gold in your portfolio and everybody should as a hedge you might also want to consider
a crypto currency in your portfolio as well like bitcoin yeah you know i know 3 people out there called money jam star rice. and they are chefs talking about all the back line 2 of those paint balls same really informed and keyed in on exactly what's going on. here chef does not and he's the most vocal. how does he can never talk about let's move on so james turk 2 the i.m.f. recently argued that we need a new brighton a woods agreement a great reset. historical you know some historical lessons there bretton woods after world war 2 the united states took over our u.s. dollar was the world reserve currency was backed by gold our. 2021 everything's gone. to the garbage going to try a new brand what one of the going to do yeah you know bretton woods was just
a government organization to bring trying to create a new rare for the international monetary system. that was the principal thing but the secondary thing that it did was to try to remove gold from the international monetary system to remove that discipline that kept central banks from getting too much money too much currency you know history of money and 20th century is trying to separate national currencies from gold because central banks and governments didn't want to live within the discipline that don't gold imposes on the monetary system and you know we now have a monetary system nationally internationally without any kind of discipline which is why we have these problems today and why run this path to hyperinflation. it's interesting because bretton woods came just. closing the world war 2 but the other example is world war 2 that was in my mind interesting to explain a little bit about monetary history and imports of gold is what happened in west
germany when the allies the french germans the french british and the americans created their predecessor for the bundestag when they did is that made the biggest bank completely separate and distinct from the government so the biggest bank could say no to buying government bonds because what happened was is that government allies realize that in order to fight a war you have to have control of the currency and they just won 2 wars against the germans they didn't want to fight a 3rd so they made sure there was that clinical discipline between the buns bank and the government and the irony is that they didn't impose it on themselves they really imposed on germany and it worked very very well the bundestag did a remarkable job of managing the national currency the deutsche mark up until the euro but now the bonus bank has become. you're elegant relative to the european central bank which is a political control so that's the lesson of the 20th century men actually have to remove the currency process from government control right now governments are 100
percent in control of the currency and they're heading in the wrong direction yeah the budget bank was really sensitive and very disciplined then. draggy was over there at the e.c.b. and the c b s i actually took over from the abundance bank when the introduction of the euro and then he started to do all this quantitative easing ally policy and expanding their balance sheet dramatically and so they lost all their discipline and they become a basket case just like the u.s. dollar you know one of our colleagues alice of a cloud over there called money always excellent alison mcleod you know he says he thinks the dollar is going to affect him collapse you know he said he doesn't even think it's going to make it to the 50th anniversary this august stan druckenmiller has quote very very short the dollar so there's one thing to say all the dollar's fading away and it's going to be replaced by that for some very smart people they
think it's actually on the within months ali collapsing how do you weigh in on that . but i agree with alice or i think we're very very close. on easy so is the greatest to come since try this century came up with this term called a crack boom you know he saw the hyperinflation in austria after the 1st through war and typically you have 6 to 12 months when the currency collapses when syrian hyperinflationary cracka. and i think we probably have already started to crack a boom in most countries around the world today including the united states which is why everything is going sky high you know people exit the new currency it may take longer than 6 to 12 months though because we have more regiment taishan and more controls and people today than there were in a. it's true after the 1st world war so maybe it's going to be a 12 month or 24 months you know. but if we don't get off this road toward hyperinflation if we don't stop turning us government paper into currency dollar
will hyper inflated price stand talk to meller stick on him for a 2nd he also says he's very long asia as they are the only economy left standing after coated they did not have to increase their money supply at the same pace is china to the post covert era as de us was to the post world war 2 era chants. yeah you know it's interesting you know that your politics and everything and the only issue that i have with china is the rule of law is not well established private property rights are not well established and that's a concern to me because you know in a free market in a free market economy the key the core element is private property rights so yeah you know. i think an alternative investment area i wouldn't put all my eggs them on basket you know i would diversify you know globally which is i think really the
best strategy you know not only invest in your home country but you know with some of your purchasing power in a variety of different countries that friday different vestments around the world for a while even warren buffet has just put a huge amount of capital as his farm into japan and south asia going on there the u.s. james wants to stop the belt and road initiative which one could argue is similar to a post world war 2 marshall plan how do you think this city's trap will play out to say the rise of china and the fall of the u.s. you know we've seen these kinds of musical chairs amongst empires now going back thousands of years. does that does the u.s. engages china in hot war in other words is all this is us is going to go quietly as china moves up to the top dog are going to be a hot war. can't predict that one actually hope that it's going to be you know quiet and no wars i think conventional wisdom is that eventually there will be a war but i'd take the contrary point of view and say there isn't going to be
a war because everybody knows how bad it can be you know we seen it we know what can happen and i think everybody wants to avoid it so let's hope that that's the case but there is a point here that is important that you know empires die when the currency ties and i think again coming back to the dollar if we don't get off this road you know the american empire which just in supposed to be an empire anyway as opposed to the republic. you know there's there's some serious issues going head in terms of geopolitics if we don't fix this currency right thanks to current state james turner if all you are running the fed james you know life is better for everyone thanks for being on kaiser report thank you very much track stars great to be with you all right well that's going to do it for this edition of kaiser report with may max has earned stacey herbert want to thank our guest james turk of gold money dot com until next time.
researcher at the least so you are good in each other than the human. but on the better side going to work with the soul that this isn't just. me emotional learning to. go if you'll still be stuck with muscles from the course of your knee which mrs cheney has just woken up to go to the church. business compassion that. we think he minds be soldier because off the boot she's wearing. huge which to the soul looks like to move to a possible opinion with will be done you're going to sure stuck with some russian
stories forced to dust all the. headlines this thursday lunchtime from moscow facebook's power is questioned again and without his ations of censorship and stifling free speech as its oversight boards held a ban on donald trump we'll tell you i'm all. big focus on this will make or may not kick off tempos for a in the waters off jersey with britain sending its navy to that island territory now as france threatens to pull the plug on electricity there and fisherman blockade a local pause plus nato starts its largest exercises in decades in albania with officials claiming they are transparent and defensive despite not being right on russia's doorstep.