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tv   Keiser Report  RT  July 9, 2021 11:30pm-12:01am EDT

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your commodity is in all kinds of weird supply chain things going on that's forcing manufacturers to pay way up for whatever they want. so it's really hard to tell how much of this continues into the future, and how much is going to get fixed. for instance, right now, a lot of the, the industrial commodities out there and agriculture commodities are starting to correct, like lumber after quadrupling in just a couple of years and spiking the cost of building a new house is back down by 40 or 50 percent. so the question is, does that, you know, is that the new trend will, will commodity prices start to go down and will that filter through to inflation next year? i make it lower than people expect. i have no idea. but that's all you know, in a way irrelevant because the, the macro longer term trends, all point to rising inflation out there in the sense that we're borrowing so much new money that has to be covered by creation of new currency. and that is
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inevitably going to make the value of all the big currencies go down, which is how most people define inflation. so that's already baked into the k, you know, whatever happens this year is less important than the longer term trends. and they're, they're what they've been, you know, for the last 5 or 10 years, you've been able to point to the macro things going on out there and say that yes, the value of the big c r currencies has to fall going forward. so i don't think we should get too excited about what's happening right now. although there's always a chance that that it spooks, the markets you know, before it moderates does moderate. and that brings about the final price. but you know that there's so many catalysts for gigantic financial crisis out there. any one of which could tip us over the edge and this could be one if inflation stays high longer than the markets can tolerate. so ok, long answer to i guess what could have a short question. i don't really know. i don't know if we have inflation that is
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going to go on from here for a long time, or if it's just a squiggle on the way to something much more serious happening later. well, john, we see some interesting developments. so there is inflation in the system as you point out, it's showing up and this is leading to supply chain disruptions. a lot of shortages . the system as a whole seems to be breaking as well as infrastructure problems. and the inflation seems to be taking of the form that you would see may be in an economy that's starting to rely on rationing. right? because the underlying economy is broken because the infrastructures decaying because the supply line can't be maintained. and so that's another type of inflation, it's not driven by money. printing is driven by rationing, is driven by total breakdown. i mean,
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there's potentially you could say that there's inflation in cuba, you know, because if you try to get a pound of sugar and you don't have a rasping card, you know, it's beyond your rates, you can't afford it. right? and it just seems like that's being under priced at under it. people just have assumed that the, the, the u. s. economy is flowing magical orb that they just tweak at the margins and prices go up and down. but i think the actual thing is collapsing like soviet union collapsing, and this is driving some price increases. and nobody can understand that because they're not told the that aspect to a job. we're not used to that we as americans think it's our birthright, to have a system that works really smoothly that we get what we want when we want it. you know, we make a phone call that refrigerator is delivered the next day. if you plug it in and it worked beautifully and you know, it's not the case so much any more on, on dollar claps dot com. i have a series of articles called welcome to the 3rd world about all the different ways the things breaking down here. and i, you know,
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i think that the broad heading for that story could be called peak complexity. in other words, we've created a system that is just so complex that we can't run efficiently anymore. and it starting to break down, i want to complex system starts to break down. that's not necessarily a gradual thing or it's graduate 1st and then and then catastrophic. one scenario for that to, to play out is that things do start to break down and we don't care what we want. you know, cities start to go bankrupt because their pensions are over funded and they can't maintain their infrastructure and the federal government then feels compelled to step in with insane amount to new money, which is exactly what's happening right now. you know, we're bailing out states and localities who pretty much made their own bad by, you know, implementing, wildly over generous pension plans, among many other things. and we're, you know, so we're creating, trying to new dollars to do that. that affects the financial markets in
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a lot of pernicious ways, and instead of helping it accelerates the process of societal breakdown. so you can make the case that's all happening to, you know, basically when you are away too much money, stuff like this is kind of inevitable. you know, things just don't work right anymore. so we're, we're in that stage of the process where we, we reach the, the rewards of inflation early on when we went to a pure field currencies and just created huge amounts of new money. and i was just, just like, if you were, i started, you know, maxing out a bunch of credit cards. we'd have a lot of fun with that at 1st. but then we'd have to pay the piper at some point in the future. and this is that time, you know, when things just aren't going to work right anymore. and you can point to lots of specific, you know, sector specific or cities per sepik or government specific things that are going on . but they, they're all happening because of that root cause created
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a wildly over complex system with insane amounts of new money. and it's beyond the point of fixing right now. so you know where this happens and how it plays out in terms of timing is anybody's guess, but it definitely feels like we're heading into that stage of the process. and i don't think there are any fixes. you know, right now i think the government would, would try to convince you that they've got it under control and that they, if they do this, you know, if we have the right interest rate and the right corporate tax rate will be ok. but none of that is true, you know, when a complex system starts to break down, the, the fix is become beyond complicated and they become impossible. and here we are, you know, we could be entering that time. well, all 3 of us were around since 1971 when we went off the gold standard with how these good times. but we're, you're starting to see part of the money printing issue that has always happened since, and certainly domestically is that we have that you said it is trap of china rising
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in power and our conflict with them, causing this d globalization that you're starting to see we also have that generation coming up generation z who are pretty smart and they kind of see that like that. it's the last one in, on this ponzi scheme. and there's a sense that they don't want to pay that. so is their mindset changing? is there, it feels like the boomers and generation acts like we kind of sensors at last, hurrah is like, let's, let's you know, before you declare bankruptcy, spend as much as possible because you're going to declare bankruptcy anyway. you might as well get a whole bunch of stuff. all those new cars people are paying, matt, they're paying over sticker price for cars at the moment. like people are just like spending wildly. why, while they can, because the solution is the next generation coming out of age and deciding, we're not going to pay. there are 2 or 3 ro here. important points in that one is that it does feel like we're at the kind of
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a blow off stage where we've just given up on any concept of fiscal sobriety. right? and you know that the u. s. government gonna run the 3 trillion dollar depths of this year while we have 4 or 5 or 6 percent inflation. and what's the unemployment rate now like 6 percent of the us are 5 percent, some below number. you know, that usually coincides with fed tightening, but not this time. right. and as you mentioned, yeah, people are doing crazy things with their own money at the same time. the housing market is just baffling to me, you would think that in a, in a recession which we had last year, home prices would at least stop rising, but they've just been spiking this whole time. and yes, cars, whatever you can think of right now, people are paying up for it and that's okay. that could be a societal breakdown in a car market. now we're saying something here we're used cars of some models are trading above the price of new cars. but the same model,
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if that new car is unavailable right away, people are buying a used version of it and paying more. so i've never seen that before. and it's almost as if the car market is in backward ation. which is something that you only see in the commodity markets. right? you know, the, the, the crazy things we've seen these markets like negative oil price, we saw last year, remember, price, oil, it negative. we saw on negative interest rates, which is absurdity. now what is trickling down to the mom and pops out there where they're paying the, the law of economics don't seem to apply in any facet of the economy anymore for anybody, john, move the car thing. that's kind of like the housing market. why in the world, do you even need a car if you're on lockdown? right. you would think car sales would fall off a cliff in a pandemic lockdown, but that didn't happen. everybody was out there buying cars in houses. i've. i don't know so much of this is only explainable by some kind of
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a psychotic break down there. there is no real financial reason for any of that stuff happening now. so you know, if it, if it's not happening because of straight forward financial and economic reasons, the reasons and causes than the outcome is kind of hard to predict. so i don't know . but, you know, one other thing from, from stacy's question, the younger generations that are coming along ought to be really angry. because the baby boomers have just screwed up the world. you know, my generation as basically inherited a reasonably solid financial system and then proceed to just ruin. and now we're looking at them and saying, well, ok, you know, we're retiring now get ready to pay for medicare and social security. so i think that's kind of a generational conflict coming when, when we start making our demands and we ratchet up our demands. and the guys who are expected to pay for, it's just a now sorry, you know, i think there's a,
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a political market bitch now, for somebody running for president who says, you know what, we just can't do this. we can't take all the money that 25 year olds make and hand it to 70 year olds. we just can't do it. so we're just going to scale back those benefits really dramatically. all right, we've got to cut it right there, but we'll be back right after this message. don't go away. the me join me every 1st day on the alex simon show. and i'll be speaking to guess in the world, the politic sport business. i'm show business. i'll see you then me as part of this international mega science with that project can neither is being built into. it's going to allow the scientists to study matter. they believe it
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existed adjusted to the big bang good form. ah, the tires were more flu shane and the more did further chillik authority of 1913 delivery perfectly to teach as a country the montage boma some go out and we just got that mika emotions here from gulf that i could almost even move this we could use both. maybe that is the ah, the ah ah
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the me welcome back to the kaiser report more with jon robina of dollar collapse dot com. john, i want to follow up a little bit on the dysfunctionality of the markets and the appearance of the economy to be broken. you know, here's the problem. what say i find a vending machine somewhere. if i just push a button, it spits out a candy bar, right? i never have to put my quarter in, or my dollar belen, i just push the button that it gives me a candy bar. the reason i bring this up is we're in an economy right now where
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a lot of people know it's broken. and those people have access to borrowing money and 0 percent. and they're placing pads on how broken the economy is whether they're on wall street or there are private equity firm. it could be warren buffett . and so they're throwing gasoline on the fire. right. instead of some, somebody standing up and saying, hey, wait a minute, let's fix the economy because otherwise you're going to drive off a cliff. you've got a lot of people now who's 24 hour day job is to try to make it as worse as they possibly can because they're stealing. that's one of the problems with excessively easy money, which flows from currency. there's not back by anything you create. what's called moral hazard, which is a situation where people start behaving in ways that they wouldn't otherwise, but because it's been made so attractive by the artificially low interest rates or otherwise easy money. and the whole world has become a place like that. now it's
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a casino, where everybody's borrowing insane amounts of money at extremely low rates and then doing things they might not have done otherwise. to make, you know, little tiny profits over and over and over again on a scale because they can use borrowed money that inevitably leads to some kind of a crash. the problem with was today is that you got the whole world doing it. you know, every country has a currency every financial sector in, in every developed country as people doing all the steps that leverage speculating . community is no longer this little tiny sliver of the world. it's now the, the tail wagging the dog out there. so you can't stop the process like we can't ever raise interest rates again in the us. because we start out by getting a tape or tantra from the markets, which is the markets responding to higher interest rates by crashing. but now what we get is a pre taper tantrum like we had just lately here, where the fed announced that it was thinking about raising interest rates
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a tiny little bit 2 or 3 years in the future. and the stock market started to fall . so they had to walk that back. so basically it's never ending. and i think the big psychological change comes when people realize that these emergency measures that we put in place in 2008, 2009 or the new normal. and they start thinking through the implications of that. so we're already seeing the super rich do that. for instance, who's the biggest buyer of agricultural land, farmland and america, bill gates, you know, a tech millionaire who probably doesn't know how to drive a combine or a milk, a cow. but now he's our biggest farmer. why? because he sees what's happening to the financial system and it's shifting his money into real assets that don't depend on the currency for value. and what about lack rock and, you know, the other big hedge funds out there, they're buying houses for the same reason because the house is
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a real thing that can generate cash flow. and that doesn't depend on the way a government bond doesn't depend on the value of the currency. so their front running this process, their intention and their expectation. and i think, you know, in reality what they're going to get is that they will be our landlord and our grocery store when the time comes. and the rest of us will be debt slaves. which, you know, is a shame on a lot of levels. but the biggest shame is that the people who are hurt by the few who trust the governments of the world by holding cash and bonds and other things that come on the currency. they're the ones who end up being hurt. while the, the guys who already got rich in the run out of the financial system are setting themselves up to benefit from us eventually crash. you know, they're going to wind coming and going and they'll be even richer in relative terms than they are now. while the 99 percent will be poor her in relative terms, so that's a recipe for chaos. but we also,
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as you mentioned that intergenerational thing, i do note that the rent moratoriums are being extended yet again. so all those renters, the young people who can't get on the housing ladder because black rock and blackstone and all these huge guys own all of the property, well, nobody's having to pay rent anymore. so it's a weird kind of futile system. but that relies on, as max was pointing out about the supply chains, is he and i just went for the 1st time to an electronics store. one of these big ones and shelves were empty all over and has signed saying this product, unavailable. and is because of the semiconductor chip shortages. so we, at the end of the day, even the likes of bell gays and black rocks and blackstone in the united states rely on the kindness of china and the rest of asia to provide us with our goods. so where, what, how does that resolve itself? you would think that we would just build a bunch of ship factories here. we don't seem to be doing that. yeah. but that's
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usually the way a market works. so the question is, is this still market, you know, is there still a system out there that responds to price signals? where if new production and i'm still program to think that that's a fairly easy fix, just because for my entire lifetime, that's how it works. you know, if there is a shortage or something then, well, huge profit is to be made by going out and supplying that need. and so we'll see in the next few years, it's possible that we're just so broken in terms of our trade relationships and technological abilities that we can't do that i still think we will, and i still think we that part of the broken supply chain will be fixed, but it will be fixed at, at higher prices, right? because we make chips in the u. s, they're probably going to have to be a lot more expensive than if they're made by slave labor in china. so that's
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inflationary, right? that means the cost of all of those things that we now have access to finally, after 2 years of not being able to get them. the cost is suddenly 50 percent higher and that leads to problems in other aspects of society. so it's not a fix to, to get access to these ships as a way, you know, we can expect to over the next couple years. it's just something that exacerbates a different problem in a different part of society. and you know, it doesn't seem to be an end to that because every fix that, that you can reasonably see for one aspect of the mass that we're in right now causes problems in other parts of society. and i don't know what the solution for that is. i think that there are no real fixes in the long run from a hyper leverage society that is on the verge of going off finance one possible price discovery rectifying. and that would be a dollar collapse,
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but before talking about that, you know, he mentioned bill gates, some other billionaires in the news recently, charlie monger and ilan mosque were both coming out this week with comments. lot in china, you know, charlie monger over there, berkshire hathaway, talking about he wishes there was the chinese censorship style in the u. s. b line gods mosque talking about how you know, how great china is. and, you know, there's a great concern about how china is now dominates the hollywood. the output, it's actually curtailing movies to fit their local market. so we're seeing already, it seems like they're softening us up to accept more of a chinese style communism. here in the u. as i mean to your point that the end result would be a kind of a neil feudalism or some kind of slavery model. it seems like they're already telegraphing that john for somebody like no gates or warren buffet. a talk down clause, i dictatorship doesn't sound like
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a bad deal at all because 1st i'm in part because they already kind of sort of have something like that. they can pretty much do what they want right now and impose whatever they want on the rest of the country. and 2nd, because they think it would be run correctly because it would be run by people like them, you know. so that's, and that's as old as human history where you have a handful of very rich, very powerful people who believe it is they're not just, they are right, but their duty to run the country or run the world and remake it in their own image . so this shouldn't be a surprise because they're kind of comes with the territory. but the question is, getting from here to there is likely to be incredibly messy, no matter what. and then the end result is not going to be what they thought or, or maybe it will be what they think it's going to be, but it's gonna be horrendous for everybody else. so normally when you screw up your finances, you screw up your politics and we're seeing that now we're seeing a rising aristocracy. at the same time, we're seeing a,
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an expanding political movement that is aimed at that. you know, populism in all its forms. shared is one characteristic which is the belief that a small group of people are screwed over the rest of us. and that there's a politician out there that can make it right to can go back and get what's been stolen from us and, and put things back to where it should be. so that's going to be the nature of politics going forward. you know, donald trump's is going to be followed by kinder, gentler, but maybe more effective versions of donald trump. bernie sanders is going to be followed by a younger and more energetic versions of bernie sanders and are all gonna aiming there politics. interactions at trying to impose anti trust laws on big company is wealth taxes on rich people. asset forfeiture is you know, you name it there will be trying to do it to take money away from the rich. and
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that's kind of a recipe for civil war, right? you know, we're, we're headed for a time when, when people find it very easy to humanize each other and to use the fact that they don't consider the other side to be completely human, to, to impose their will on these kinds. so, you know, it's going to be a mess and a lot of different levels, but the political side is especially scary right now. my 5 and watching a series about empires. and one thing you notice is that all empires rise the peak and then they crumble and they crumble usually pretty fast. the crumbling part happens rapidly. it just seems like it's that, and we're dealing with you know, end of empire. so in the final moments here, your site is called dollar class dot com in a post dollar out world. are we ever going to have another system because it seems like the fundamental underlying problem was identified decades ago during breton was they said, the trip and dilemma. what happened?
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the trip and that happened. that's why we went off the gold center and 71. and that's why we had to export all our manufacturing overseas. will we ever have dollar system like this? again, a fee out system hooking, you know, the fee system. i mean, there are, there will have to be some kind of a reserve asset that, that people can trust to maintain its value for long periods of time. go did that for 3000 years. there are those who say bitcoin will do it going forward. so there has to be money, there has to be a monetary system. there has to be a basic asset that everybody agrees upon as a store value. now, how we get from here to there again, is going to be incredibly messy. but, you know, i think the monetary reset, part of this is really the, technically most easy to understand in the simple as you know, all the rest of it is chaos. but we can absolutely just name something else. is our reserve asset and then start valuing everything else in those terms. we can do that
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and then hopefully we do it without a civil war. but i suspect that the people who are going to be hurt by this process are the ones who least deserve to be heard. and that's, you know, into that sucks. i wish it was done in a just way, but i, i don't think it's going to be, i think it's going to be done in a chaotic where that impoverish is a lot of people who are already right on the edge. but john, or be know of dollar collapse dot com. thanks for being on kaiser report. thanks max. thanks. i'm not going to do it for this edition of kaiser report with me. my guys are in, stacy. herbert, want to think, i guess, john robina dollar collapse dot com until next time by the me. ah, the people with diabetes or number raises whether it's adequately
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managed or that they have some immune problem. then their risk of infections and something like the coven 19 pandemic. was very bad news, the people diabetes and we considered as one of the very high risk situations in terms of people being in the last the end appears to be near washington 20 year. however, 2 nation bill and f denison was always going to end this way, a complete and total failure. it is doubtful. the corrupt government in kabul will last long after the american withdrawal of dennis and remains broken and the american people poor and no one is held to account. ah,
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i supposed to meet the teacher, julia control the traditional moving. but she's a sheet se, if you see the one doing the best for me was she said for me to in the last with metro. okay. sheet. yeah. so this is what i need from the new new new new which and what is the new executable? football. what's it when i pull it up when i got it up on that got mixed up with me.
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ah ah, the thought about celebrate sweeping games across i've got to include in another board crossing the us president confirmed troops will be out of the country by the end of next month. you know, mission accomplished. right. in responsibility that can people alone decide their future and how they want to run their country. while as refugees continue to flee the country for a new life in europe, the brutal rape and murder of a 13 year old girl, austria at the hands of an african margaret, one again for the issue of immigration back in the spotlight and the haitian government of the us and us to send troops to help protect the countries key infrastructure.

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