been warning essential a about this crisis for the past 10 years we've said all of this just in time globalization would basically cause us to be very fragile when one thing goes wrong it all falls apart and we've seen that we've seen that with now the medical supplies all those masks are made in china antibiotics are made in china vitamin c. is made in china all sorts of pharmaceuticals are made in china and they have the monopoly on it so fears of a supply shock are rattling stocks and global markets as outbreak continues investors are more used to dealing with the occasional threat of negative demand shocks an unexpected hit to demand for goods and services but the potential for a negative supply shock and unexpected change in the supply of a product or commodity is more unnerving this is not something we've really seen since back in the great depression days and and world war 2 days you know we're going to go to rationing remember world war 2 rationing became the standard

way of dealing with supply shortages and in the case of medicine and food probably rationing tickets to buy j.p. morgan and jamie diamond that's no good prices they won't be able to make money and they're the ones behind the electronic food stamps right those all jamie diamond so now that's going to go wide jamie diamond food rationing coupons of course the supply shock is being met with a supply of more cash everywhere you look hong kong was giving citizens or residents $10000.00 hong kong dollars i know in china they were giving the equivalent of 15 $100.00 as well to any citizen or resident of han who self reported coronavirus and in fact did have it so they were encouraging people to come forward and not hide amongst the population and in order to get them to stop so they were there was air drops there and in terms of the u.s. of course we're already seeing that as. guaranteed almost that there's going to be

a rate cut in march and there's going to be you know this month and then there's going to be a rate cut 2 more by the end of the year so we're going to going to 0 the treasury yields are obviously at historic lows as well so where we're heading to 0 right so it's the dollar toilet paper arbitrage at some point one sheet of toilet paper will cost more than $1.00 and that point is rapidly approaching bacon airdrop all the money they want and all they're going to do is cause more dislocation especially with the cantillon effect so you'll have toilet paper barons like warren buffet will be sitting on a warehouse with $50000.00 rolls of toilet paper and he'll be out there laughing like try to wife now america and america be like he's a genius for hoarding all the toilet paper he took billionaire of toilet paper and then the big billionaire is going to be like we're not going to lend you money to

bail out your banks member i predicted this a few years ago when they ultimately need the bailout money they're going to come to the bitcoin billionaires and the big point billionaire just say no as libertarians quote unquote we believe you need to learn how to manage yourself better so we're not going to bail out j.p. morgan or wells fargo or h.s.b.c. or barclays you're going to have to learn how to be adults no go away now in terms of supply shocks you and i went through one and that was in the seventy's as the last famous supply shock big negative supply shocks are rare eric nielsen group chief economist at unicredit bank said with the oil shocks of the early and late seventy's often perhaps the most well known examples of their supply shocks would be storm and tsunamis earthquakes wars embargoes and strikes the problem is that there is little that looser monetary policy or additional fiscal stimulus can do to offset the impact because those stimulus measures work by boosting demand yet there air drop in money on. everybody but the fact is that you know there's nothing to

buy i tried going to amazon try ordering hand sanitizer and in there you can't get any try ordering a mask you can't get one like a lot of things are out of added stock at the moment and they're going to keep on pushing more money so you know that's all there solution is a member the 70s it license plate and even license plate that was a way to ration gas and you have these huge lines and this is coming out in time in american history because trust in american government and american institutions are probably out of children 40 year low you know nobody really trust the government and you have one major part of the democrats that spend all day every waking moment discrediting all of government discrediting all of american institutions in an attempt to somehow discords the duly elected president from 2016 and so that's going to be negative going into this crisis because everyone be like oh i don't believe the government i'm just going to grow my own potatoes i've got my shotgun and we'll see what happens of course with this apocalypse this coronavirus

apocalypse it's hitting our crew here our camera guys and audio guys are like they're laughing because there's almost 0 threat to them and they're just watching and waiting for us to follow her into this pool this dirty pool here because the danger is there but in terms of the structure of our economy as well they might inherit a much better one that. those who are being hit hardest by this coronavirus have a stab of not only the empire of debt and the fragility of our system and the just in time thing but here is a piece from mass still are about what it might look like after this. 19 thing the coronavirus disappears if it ever does and we all escape covert 19 will mark the and of affluence politics the possibility of a global pandemic will reveal our inability to make and distribute the things people need just in time for a presidential election so he's forecasting that this is going to be a very big issue with these were. the upcoming elections obviously when you see

these huge crowds of people in front of the president or in front of all these candidates you do like look at that and think that this is pretty scary in this situation the coronavirus is going to introduce economic conditions with which few people in modern america are familiar with the prospects of shortages after 25 years of offshoring and consolidation we now rely on overseas production for just about everything now in the wake of the coronavirus china has shut down much of its production south korea and italy will shut down as well once the final imports from these countries have worked their way through the supply chains and hit our shores it could be a while before we get more the coronavirus will real and other words a crisis of production and one that's coming just in time for a presidential election of course they always say you know everybody talks about bernie being socialist and socialist like seize the means of production we don't even have a means of production to seize not tell you why the camera crew is laughing in the jency is because they realize that there's coronaviruses for the most part. for

kids right the kids are not getting the children and they're spreading it and it's hitting the boomers you know that ok boomer thing where they are you took all of our money you took all of our property well that's who's dying or it's going to be dying from this coronavirus right particularly men so it's like a stephen king novel that mixes all the hatred and anger for me to. me and you end up with the coronavirus well if we survive you know for my age group is 1.3 percent chance of mortality rate for this disease and for you it's 3.6 percent so and then it gets higher above there but should we pass through this on the other side. let's talk about what this affluence thing is and what it means for our kind of where it was coined and it was coined back i guess during the great depression 1st off we haven't faced shortages of such magnitude for a very long time more importantly we have for decades lived under a political framework known as affluence. term popularized by economist john

kenneth galbraith in the 1950 s. as an affluent society america automatically produces a surfeit of jobs and wealth and the problem is solely one of distributing the bounty under the siren song of affluence we began offshoring critical production capacity in the sixty's for geo political reasons and 1971 economist nicholas caldor noted that american financial policies were quote turning a nation of creative producers into a community of ron t.a.'s increasingly living on others seeking gratification in ever more useless consumption with all the debilitating effects of the bread and circuses of imperial rome and he said that in 1971 of course right when we went off the gold standard imperial rome when it once it started to collapse you know it kind of went downhill pretty quickly the the visigoths and the various other vandals on the barbarians here we have the magic of financialization and the magic of most of 40 is that the kids coming to the kids are coming to infect us right now

this is a personal extinction event. ok we got it. so this is the collapse of this empire which has been going on for near 40 years because of financial ization in the magic of a bond market rally so every single problem that. the romans didn't have the ability to simply print their way out of the barbarians invading because they had to rely on hard money to pay the soldiers and they were coined clipping and this type of thing so there was an endgame here because of the empire of american debt they can just print their way for decades without having to face the music but at some point if all interest rates go negative and you've got a corona weaponize children with the coronavirus looking to everyone who's a boomer or a man a man boomer then that could be you know for a. destruction aeration who will inherit something like 30 trillion dollars of

wealth that's been built up in these affluent bank accounts including probably $150000000000.00 worth of bitcoin so these kids know what they're doing and i i try to make friends with these kids i get in candy and i give whatever they want you know they don't don't don't give me the virus could you know it's like this is like holloway and christmas and everything wrapped into one here take it all just take whatever i can just leave me alone. yes i i did see max handing out some private keys earlier to some kids running around this neighborhood but speaking of wealth in the last little quote here affluence politics is not the politics of being wealthy but rather the politics of not paying attention to what creates wealth in the 1st place that is to say it's a politician ignoring our ability to make and distribute the things that people need since 97 when we're no longer in a gold standard and we've had we forgot what athlon says we forgot how to create wealth and. that's why you're giving your private keys to all these children right

affluence is the absence of risk so now we're seeing the risk come back as it should if you're trying to have a fair market we're going to take a break and when we come back i'll share for a painter xstrata there will be with us don't go away. thousands of american men and women choose to serve in the country's military and the decision. every song came to a complete. the day that i was raped. you know told to show what they'd kill me and i see how it distorted. any screamed at me and he made me come in and he grabbed my arm and he raped me with his birthing theory if you take into account that women don't report because of the extreme retaliation and it's probably

somewhere near about half a 1000000 women have now been sexually assaulted in the us military is a very very traumatizing have happened but i've never seen trauma like i've seen women who are veterans who have suffered military sexual trauma reporting rape is more likely to get the victim punished than the offender and almost 10 year career or chose very invested in and i gave a sex offender who was not even put to justice or put on the registry this is simply an hour and a violent male sexual predators for the large part of target whoever is there to prey upon whether that's a man or woman. as the great american momma dolly once said he who is not courageous enough to take risks will accomplish nothing in life risk averse is one thing that is not from being a key member of the mit blackjack team to investing in promising migrant into print

. but what is a risk and how do you know if it's worth taking. good food descriptions sound up to tell using even for the owners so how to choose the pet food industry is telling us what to feed our pets really more based on what they. sallust name was necessarily good for the path churns out and put food may not be a soap the people believe we have animals that have you know diabetes in arthritis and they have auto immune disorders they've got allergies we are actually creating these problems and it's a huge epidemic of problems in all of them i believe can be linked to fairy simple problem of diet and some dog owners so heartbreaking stories about their pets streets the larger corporations are not very interested in proving or disproving

the value of their food because they're already making a $1000000000.00 on it and there's no reason to do that research. welcome back to the kaiser report i'm max kaiser time to turn to alex schaffer artist extraordinary alex welcome back well welcome you all back to l.a. and this wonderful city i can't believe it's been it's been over 2 like since 2012 right you know back in 2008 when the financial crisis hit the big one the part one you started a fantastic paintings of banks on fire burning banks so very graphically illustrating the point that these banks are social ill the coronavirus back then was wells fargo the coronavirus back in 2008 was j.p. morgan it was h.s.b.c. and barclays these were the pandemic of fraud and fear money that was incinerated

in the global economy and you capture that brilliantly in your paintings and nothing has changed except your painting value goes up because the more they print money the more valuable your paintings become alex i know. the the thing that's blowing my mind is that all this time has still gone by and people are completely. in my opinion angry at the wrong parties you know. and i see a little bit of progress but at the same time nobody wants to give trump anything credit of anything good happening but you know we did have wells fargo have to pay that huge fine right whatever that was a big amount of money yeah but where does that money go that's a question i got for you when a bank gets a big fine and you're like who justice served ok then what where does that $1000000000.00 go does it just vanish into the treasury box or something goes back

to the bank to the base yeah. in other words to say wells fargo's find us a $1000000000.00 they borrow it from the central bank and 0 percent cost ok they pay the fine ostensibly and then the and then the central bank makes a 1000000000 dollar loan the next day right but but they don't pay that to the government no they don't pay anything now so it's just it's all but just the boogie theater designed to assuage people's fears that maybe were run by a club talk or see and write a stock or say and the worst kind of torture burying economic haul far soonest so that the world has ever known but now we're with the markets crashing the way they are it's like warren buffett said when the tide goes out you see who's down wearing a bathing suit well now what the markets crashing the fraud and malfeasance is becoming as prominent as mount rushmore so you've got jamie dimon is like on the mount rushmore of fraud along with the head of you should do

a mt rushmore. commissioning not prior to that out of the painting them out rushmore of from. another thing that that i'm that i'm seeing is well i mean obviously the homeless problem in l.a. here isn't getting any better and you know they just had the martin case settle what happened well that was where this guy was suing boise saying it's unconstitutional to say i can't sleep outside if you don't have sufficient facilities so. it went all the way to where they kicked it up to the supreme court because they were saying well yeah it's unconstitutional you can't tell someone they can't sleep you know on the sidewalk and the supreme court said they're not going to look at so now every you can sleep on the street you know because there aren't sufficient facilities in l.a. it's so frustrating well if the economy doesn't favor the kind of productive

society that one equates with a free market capitalist system right you've got a clipped ocracy. and you've got the bankers they steal the 99 percent of all the money they print and they buy art like yours i mean this is a great hedge against jamie diamond and other the kleptocrats is that the value of the art goes up faster than their ability to print money that's why because those are trading at all time highs that's why fine art and chateaus switzerland are trading at all time high prices because they're going up faster than the central banks ability to print to try to imprison everyone who's not a central bank or into a system. right so you've got this new class of debt slaves yeah they can sell fees in front of $150000.00 bananas. down there in florida miami what's your take on that because you know if you're going to be the art up so that was obviously a big moment for list 3 it's the richland every artist i know on facebook had their

opinions and whatever but what is your take my take is that it's not enough to bankrupt and create a whole new class of poor people they want to humiliate them as well yeah by saying look we paid $150000.00 for this banana with gaffer tape on it so it's like not only do we steal all your money or we did it with impunity and you can't do anything about it so they're laughing and that's that's generally what happens right before a society goes into an insurrection right so that's why a lot of these absurdity these hedge fund managers are worried about getting torched or heading into the good scene now and that's why they're buying these very expensive bunkers because they realize the end is nigh and chrono viruses weaponized my children obviously to go after these guys. corona virus or by the way i gotta get some masks yoko and since we're talking about supply side here let me give you. since we're talking about supply side shortages you know this might be you know like a $20.00 mask these are days are going to be rationed at some point can you do some

art on the mask and even improve value like that well have you seen you know what they're doing even better is there you could get your face on your branded on the mask so that you can unlock your phone with the mask on right because if you can't interact with your phone then stock will collapse oh yeah sure you know and i would be like mount rushmore collapsing more than batek and suddenly collapsing the high church of consumerism and hyper vanity yeah narcissism on steroids would disappear and therefore the old economy would disappear but now what's happening in you know you're in downtown l.a. and you've been painting this whole time yeah and you know what what have you as an artist how. have you like grown. out there or what is your what kind of what kind of how is your art like it is just basically keeping on the same

theme or are you digging deeper into what about the colors what colors are you into now i mean i see a lot of green here you know if you look at it you'll it is yellow good the yellow and picasso went through his blue period yeah i mean i notice you're going around period right now i mean i love a lot of color if you go to my instagram page with alex that's my instagram you what i'm actually doing a bunch of paintings of just 2 prongs of people in a chaotic rush to the exits right and it just fills the canvas and they start in total chaos but i do take my glasses with a broom and then i block these like just disaster pieces in and start to find the find the people and in the crowd but that's to me feeling like the energy that i'm getting is this chaos overload right now this painting back here the wells fargo bank. on fire you know i could add $10000.00 to that right now and value all you

need to do is in the foreground have a kid with a book of matches and printed on the book of matches the bitcoin logo oh yeah and you to get a big claim billionaire with a big money for the family i know i keep thinking there's got to i know i know for a fact that there are people that got big coins for a dollar a pick or something else and this shows us what he said before the buy and they might have like thousands of them so they could get a painting for one bitcoin to accept because i do i don't want to put a big coin reference in that painting and tap into that because i'm building a market like a little q code or something like that yes trace mayor told me he would buy 10 at $100000.00 apiece if they had to quite associated with as a way to restore. his reputation recently torched that really could be a picture of trace mayor's reputation back. oh my god you know i don't know exactly who that is but that's fine you don't need to know it is

a big coin is anonymous to a degree yeah i'm a proud pearcey pay a $1000000.00 i know enough guy who's worth a 1000000000 dollars i mean i may have been 80 it when it comes to the 6 point things are you stacking sat's i'm not why not have a cash app on your phone is so easy even alex jones has now been a big coin convert he resisted it i told him to buy it at a $1.00 and $10.00 and 100 dollars 1000 dollars they said no to george soros plot finally he's given up his resistance and he's fallen into the reality that his big going is now buying it with his wife erica they're buying big going every day they're stacking sets ok i mean yes if i almost cried when he heard about it peter schiff cried. and it was really really sad to see peter schiff agreeing they have a beef he does have both he east coast west coast do you know do you guys do you know kind of chest bump and when you get round i'm sure he smiles and yes wouldn't

think of you guys like that time to get beat but so far about performing every one of his clients by a factor of 1000000 person i know and it's funny i got i'll bring up big korean and people be like oh yeah i didn't crash it saying it crashed you know and there's still the news is so so i know i know it's like 189 $1000.00 it's unbelievable right now especially bellinger people who were getting it back in the day because they were trying to buy adderall illegally and they inadvertently would buy it to so they could trade on the dark web and then suddenly it goes up and they're like oh she's i got $300.00 bitcoins because i don't adderall addiction i think i'll save these now we're selling or whatever our own well yeah people are hotaling them that's another hoddle h o d l that's another artistic thing you can be exploring in your. and then hold. for dear life yeah hold on for dear life i thought it was interesting that you pointed out maga which was microsoft apple google amazon yeah that that's what they should

call those stocks right maggie can i never make predictions but this would be a prediction is the market's got to go down it's ridiculous lee priced so. for existential and philosophical reasons this is a great excuse to drop a lot of the price out of the market but the fed is going to come in and poor a bunch of money on it and it'll go up and up and up between now and november and everyone will forget and then trump will be like it's going the fed has essentially a big bucket full of pain and their fear money right this is good i want to work on this bright and they go oh this is actually. worth $1000000000.00 he said and then jamie diamond comes around and he says oh if that's worth a $1000000000.00 then everything that i bought the last 3 years i mark that up to a $1000000000.00 i mean i can use that as collateral to pay myself a $1000000000.00 and then go buy a place that happens for half a $1000000000.00 and that's how the economy grows by using fake assets to create

fake collateral to create fake loans more need to print more money and so we end up with this bubble but as you point out there is no bubble that will not be met with more money printing right because there's no cost of printing money it's a crime against the artwork now it's gone up i think on average 2022 percent a year you know i got i mean one of the greatest and aren't selling better than ever right so if you want to start an art collection you know you don't have to start with a picasso for $50000000.00 you can start with an alex shaffer print or an original artwork for 1015000 dollars now let me tell you our friend here when we do this beautiful show with the lemon tree she just bought 5 for $25.00 apiece love it let me tell you some part of the play in the long game fine art world if you want to get in some good collections and i just recently had a piece sold into the. beth do with art collection she's on the board of trustees at the whitney museum she's got her own museum in florida she bought

a burning wells fargo exploding with an american flag in front of it so you might end up seeing one of these paintings in a in a show so i mean look don't sign this too that will add another. $30000.02 yeah we're collaborating now right so that doesn't actually answer. 35000 this original base are what is done is yours alex shaffer as the artist who has been chronicling the bank collapse now for 10 years if you want to reach us on twitter he can do so at kaiser report i want to thank you for watching i want to thank stacy herbert i want to thank big coin and i want to say goodbye goodbye. to you.

oh. yes to all this is all the. little. he. joined me every thursday on the alex i'm i'm sure and i'll be speaking to guests of the world of politics sports business i'm show business i'll see you then.

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