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are this is the kaiser report true true yeah we're on lockdown doesn't matter things are still happening things are still going forward to use a still newsworthy and what's relevant is relevant what's not relevant is not relevant. well you know out in my headlines i'm going to compare these stories to the chinese finger trap now i used to love that toy as a game and it worked on me every single time the simple puzzle trapped me and his fingers remember if for those who don't know it's kind of shaped like this and it's made with. bamboo strips but you put your fingers on the 2 ends of the hole and what happens when you do that maddow yeah you get on your finger you have pole and you know what happens is it shrinks in size the tube shrinks in size when how to get out of it how do we escape it is useless and relax and put your fingers

together and the holes expand you know when i can watch this for our we're not a magic show but what is magic is what the fed has been doing what the u.s. government has been doing for the last 20 years any time the debt load gets too big and all the fraud gets too big and the t.v. ofr all of them the dot com crash every single time is met with more money printing but this cycle the fact that it keeps on crashing and keeps on the fraud keeps on building yeah it's like they're stuck in this chinese finger trap they keep doing the same thing then printing is exactly like the little kid pulling their fingers further and further apart in other words they should just like if they find themselves in a hole stop digging that's the western analogue to the chinese finger trap perhaps but you know what the thing is. if they would just relax if they didn't try to micromanage if they didn't try to rescue all their banker friends and commit the

moral hazard if they just relax and said you know you're not to fail that business is going to have to fail that fraud you're going to go to jail you know if they just gave in to what is the natural business cycle and instead of fighting the business cycle the business cycle sitting there right in the middle of the chinese finger trap all they have to do is just relax let it fall apart let it collapse let it go bankrupt right well there is moral relativity and moral hazard associated with what you're saying here in the economy and on wall street in the banking industry they keep. moving the goalposts in terms of what constitutes a moral or even legal activity we've been saying this for a long time now every time they commit an illegal act they simply decide to change the law and say well that's no longer illegal that's how the 2008 crisis was a repeat of the s. and l. crisis of the eighty's under reagan and the reason it was allowed to happen is that

after the s. and l. crisis there was a whole sell re architecting of the laws governing the banks to make what was illegal then no longer illegal and to make it legal and in 2008 what was the legal was legal and they committed that massive fraud and there was that global financial crisis and then after 2000 a week after lehman and bear went bust they said you know what we don't want to leave any of these banking shenanigans behind we need to change the laws again to make even the few things that were illegal now legal and now we have 2021 there's literally nothing in place there's no laws or if there are laurels there is no enforcement and so it's just a chinese finger puzzle really between satan and jamie diamond i thought they were the same thing but that's another story another episode we cover that many times so on this front though you know the kid the. child so you put the strick on they put their fingers at either end and they start to panic they pull harder and harder and

harder and the same thing you've seen this over and over with the us federal reserve and remember it's only been around since 19131914 so it's still a baby compared to say the bank of england which has been around for hundreds of years so what you're seeing is remember we keep on hearing about this conundrum they can't figure out why wages aren't rising they can't figure out why consumers aren't spending they can't figure out why deflation keeps on happening they can't figure out why this money printing the same thing is like pulling so hard i can't figure out why i can't get my fingers out if you're well. you know that construction but i told you about the tubes how they constrict that's like the money velocity collapsing that's the same thing you see that in the trick there the puzzle they're trapped in these in this ivory tower of the new york fed and the st louis fed and the chicago fed and all the sped they're all stuck in this this mind trap of this finger trap of might this show that they keep doing the same thing over and over as cognitive dissonance doesn't they they don't understand that by

doing the same mistakes over and over again they're going to end up with the worse and worse outcome because at the same time they write eloquent op ed pieces for the wall street journal that explain the eloquence and the sophistication and the area dition of these policies from larry summers and others how genius they are from the bowels of the harvard think tanks and why this is of course the right thing to do even though the results the actual proof of what they're doing is cash strapped for the adults in the room like us kaiser report audience kaiser port presenter is where watching the little child amusingly where like laughing but after 20 years it's like chinese water torture started like ok this is just torture and this is like let's help this child out let's talk to them about bitcoin neutral unit of account gold like there's an obvious answer out of your solution that the relaxation is let the business cycle rule let neutral currency

a unit of account that can't be manipulated rule like let that happen prevalent is such an is water torture become waterboarding rights or 20 years ago the drip drip drip of money supply increase was unnoticed but now with these quantitative easing program despite water boarding so the consumer is held down on their back and they have a rag on their face and larry summers and jay powell and jamie diamond they're poor . buckets of water in their face and simulating the act of choking to death and saying this is going to continue until the deflation stops and then until the actual pre you know person on the water boarding table dies and then they'll blame them and now let's look at their the whole economy here that is the global economy is almost entirely shut down and why is because the united states is the number one economy in the walden where the world's consumer so japan and south korea and singapore know how to manage the pandemic and they can remain open and they can

provide us with goods and services however we're too stupid right we're stuck in this this finger puzzle we can't figure our way out to most people the wall to all these people and asia who know how to wear a mask we seem pretty ridiculous lee stupid right like there's just put on a mask well you know nature's igs and nature is a and what it is exhibit is a get what exactly a better zag so in the coronavirus it and in nature zig asia principally china hong kong taiwan. when america and united kingdom zagged and the result is one was prepared is going to survive better and the others are not so good well let's look at 2 headlines about what united kingdom and the united states did versus what asia dead when we went into lockdown max and i about 7580 days ago we thought it would be just like a show that it would only work for you know last for 3 or 4 weeks because everybody

had movie not stupid they wouldn't be sitting there 2 months later stuck in the finger chap like we're still stuck in a finger chopped so there was one story at a new york and even though andrew cuomo now is considered a great hero and just because he does a good press conference like what did they do new york centric covering coronavirus patients to nursing homes ok nursing homes in america where the elderly are put they live and we sent recovering patients there but a lot of them weren't recovering they were still infected and the last spread to the most vulnerable population everybody laughed at rudolph the red nosed reindeer that night when santa couldn't say. and he called on rudolph to help them got his sleigh and then all the reindeers loved him and called him a hero. and the point of my little story is that those countries that were once considered maybe too authoritarian or autocratic now are looking like well we know

how to handle a crowd of iris and those that had kind of like an election system that produced the stupidest among us maybe not so smart ok look at japan japan is about 2 percent of the cases that the united states as they didn't have a lockdown they don't do tree saying it's because the people themselves are not stuck in a finger puzzle perhaps you know they're not polish trying to pull the finger humble people that's why they're at their home bill enough to realize they have to act new zealand very humble brilliant leadership america boneheaded egocentric much oh knucklehead there's like. you know the rest of the world knew and you could see it was china will hand 1st they feel they have the virus 1st and what do they do they separated the ill those with the coronavirus into their own separate units they built those tents remember they built those hospitals those field hospitals and they put up the sick there so why suddenly spread it to everybody else so that was quite obvious here when i saw that tweet about new york sending the coronavirus

patients to that old folks' homes well we also sent our jobs to china and now pretend as if we expected a different outcome the same thing the same sort of chinese finger trap where like it was obvious right as soon as you export all your production all your innovation to china that you would end up in a situation like this where we don't have masks partly because maybe we're too stupid too but also we don't even have them so it's not because it's not an option for us because we don't make mascara we have to come up with the stupid reason why we're not wearing masks it's not because you know the red because we don't want to admit that we're so stupid that we can't make our own mass own sense and a world war 2 united states has been the unbelievable winner of the global geographic macroeconomic gambling casino sure with the world reserve currency and really smart intelligent financial engineers and you know software engineers but that lock is running

a that's my thought is that this pandemic has exposed incredible vulnerabilities in the united states and the united kingdom and that's going to be painful it's going to be a very painful next 10 to 15 years you know you just have to relax stop trying to print more stop trying to bail out bad behavior stop trying to prevent the business cycle from happening and maybe our problems. i evil escaped and will have a flourishing economy again yeah all this fingerpointing it reminds me awake you think you know back in the 60s when he drank and you wink you doing me a lot of fun together quite both for a wink you doing. yeah i don't remember i'm a boomer ok boomer got sick upright and when we come back much more coming your way .

we go to work see you straight home. tease khaled el hotep international memorial awards are now open for entries. media professionals are eligible whether you are a freelance journalist work for alternative media or part of a global news platform to participate sunda show published works and video all written for much go to award dot altie dot com and enter now.

you are no offense but you no longer a young woman in fact you are one of the last living survivors of the nazi ellis asked i am aware of it. leverage it all your life. and you can never forget they are going now auschwitz was really like to be in hell because he would never believe that blunt and human can do too as a copy of a course for 32 years and over the curb it it all seems so a lot over by the side to make it right when i get out on the farm saw you know what it's like ma songs were next to you so he can listen and hopefully he bless her heart heard screams.

welcome back to the kaiser report imax keyser time now to go to preston pish he is over there at the investors pod cast dot com i follow him on twitter he's always got lots of insightful things to say great to have you on preston max i'm thrilled to be here man stacey thrilled to be here so you are the founder of buffett's books where the slogan is how to invest like warren buffett so buffett's been in the news lately so i want to pick your brain on this in the 1st quarter buffett lost $50000000000.00 at his annual meeting he seemed to blame the fed so your thoughts on these losses its concerns about money printing why he hates bitcoin but let's talk about this so warren buffett is interesting spot in his career he did something people were not expecting he dumped a huge position in the airline stocks people were expecting him to be more products

are a and look for bargains etc what you seem to be a scholar of buffett to some degree can you give us an idea of where he is and what's going on there the big thing that's happening particularly with the airlines is this code it's going to change habits just going to change the behavior in the way that people who think about travel i could only imagine the income statements across the whole u.s. as everyone found out that they didn't have to go travel as much as they used to and that was a major expense on their income statement so i would expect that that's how he's looking at it i know that's how i'm looking at airline stocks is that whatever free cash those were kicking off before i think it's going to be drastically different moving forward in heat i mean let's face the fact he didn't have big gains on any of those picks that he had so there was no tax capital gains friction there so i think he was just looking the offload it it's interesting for those who have been observing. buffett for decades i'm in that camp about following him since i

was a stockbroker starting in the early early 1980 s. so it is interesting he's got this huge cash position 138000000000 or so and he did buy into airline stocks as early as february millions of shares and then dumped them a few weeks later and he was in airlines in 1989 u.s. air he lost money on that it dumped out of that and he vowed never ever to buy airlines ever again and he made a few jokes about it and then he got caught up in the airlines again and as far as buffett goes is his style of investing is it still you know they go to style to invest are are is it a bit dated at this point and we're kind of entering a different era out what different skill set i think that you're bringing up a really important point because in this debate at unprecedented levels type world that we're in. you see a lot of value investors really kind of struggling with the approach in so and

where i think it's really. representing itself is in buffett's portfolio in particular because all the stuff that he's been acquiring in the last decade 2 decades have been very capital intensive businesses so like the railroad thing i mean my god the tangible assets on these balance sheets are massive and so when you're going through this situation where currencies being the based and if you're using that currency as your unit knew marron order to do economic calculation all the sudden you you start seeing that the way in the style of investing is struggling relative to other businesses that are 1st to receive that cash it's being employed straight back into businesses that are achieving these digital network effects and then have a substantial amount of intangible assets on their balance sheets relative to the things that. he's investing in so yeah i think you're i think you are seeing some

of that play out now that doesn't mean that in the future if we if we transition into a currency that is actually stable and isn't being the beast unprecedented levels maybe that style of investing might come back and be a really beneficial way to to see the world but right now in what we've seen in the past decade it has not been that case at all so on buffett not to focus on the man but on his style of investing i think we get into some bigger points here to your point here isn't capital intensive industries whether it's railway airlines mining that might not be the a place to be as we head into a world of social networking in the cloud and things that are intangible and he's got 138000000000 or so on the balance sheet and he hates gold and he hates bitcoin and we might be answering a period where a negative interest rates were suddenly that cash is a liability and he's boxed himself out of even buying gold 'd because he's been as

orthodoxy has been anti gold for so long and he say he hates bitcoin as he painted himself into a corner do you think yeah i think he has i think when you say something to yourself enough times it starts to become very true to you even on a subconscious level and i think that when you look back it how he has said so many times i mean people have read the. article that he wrote about if you took all the gold in the world and you could put it in on the infield of a baseball it still wouldn't do anything and he gets into this cash flows analysis of how he looks at gold and subsequently bequeathing and so i think that that has that has set him up to a position where he's going to have to go back on what he has said for all these years in order to navigate what in my opinion and i know what your opinion is kind of in the coming 2 years how i. the timeline the kind of play out the next 23 years

he's going to really have to go back on a lot of things that he has been saying in order to navigate to instill outperform the market now when i think the part that a lot of big coiners might be. you know maybe maybe underestimating is once let's say that the way that you and i both see this is going to go max which is that because it is going to step in it's going to be the new unit new marriage for all economic calculation is soon as you get a large business so let's just take amazon for example let's say amazon started just doing a media clearance for all their sales straight in the big going and now you're looking at because if we talk if we took the 10 k.'s for amazon for the last 10 years and we go back and we did nominate those and because the top line revenue just as an example when you look at what the top line revenue for amazon looks like over the last 10 years it's denominated in because it's going down the revenue is going down so if these businesses start dealing in big korean moving forward all

the sudden now the revenues going to start looking like it's going up their free cash flows are going to be in a positive trend now you can start doing discount cash flows on what that looks like and all of a sudden you might actually have an equity that's outperforming big going because they're actually selling it in increasing their amount of free cash flow on their on their books so i think that's the thing that a lot of people aren't thinking because it's probably 2 to 3 steps from where we're at right now but when that happens equities to me are going to look a whole lot more exciting then then definitely than they are today right so your point there article a hypothetical a big retailer or an airline by simply changing their unit of account from dollars to pick quite some late their revenues look a great right just at that simple stroke of a pen suddenly they don't look as bad as they were doing and markets so much is driven by cosmetics right so much as driven by perception and momentum and

a simple change like that would please change the perception and could you know change the way people are investing in. in the stroke of a pen i think it's a genius idea you've come up with there and but just to finish up on buffet for a 2nd you know in the comments he made during his annual meeting about his dumping of airline stocks accent or a he seemed to suggest that part of the problem he was having is that when he went to buy stocks when he was getting phone calls from folks and about to pull the trigger he was outbid by the central bank the central bank has become such a huge stock buyer these days they're out bidding warren buffett and buying these stocks and i think that's got to be a problem in the long run because their balance sheet now is as incompetent as fragile 'd as anything in the economy which of course is a huge problem now another investing legend paul tudor jones also came out slamming

the fed monetary printing policy your thoughts on paul tudor jones getting into bitcoin i think it's massive i think that. i mean he's such a huge name in the space and i think you have so many wall streeters that. have just written it off is this super of alltel thing that goes up sometimes because all these crazy people are involved in it then it goes down and they just they haven't done the hard work to try to actually understand how the protocol executes currency and so now that you have a guy who has a massive net worth has probably one of the best reputations on in all of wall street stepping into this and stepping into it and i would tell you an aggressive way at 2 percent of his of his holdings i think you've got. the people who who are much quicker to use do the critical thinking are saying hey i need to take a closer look at this because there's obviously something here if this guys get involved so i think this is bigger news and people realize right absolutely out of that now foresee also owns gold but he says that because it's the fastest horse in

the race i take that to mean that for every dollar in gold appreciation going to get $3035.00 upside and because it just to get the gold and decline parity. trade established at around 8 or 9 trillion dollars in market capitalization but this of course has reignited or ignited the gold versus bitcoin debate aside from peter schiff being wrong every year 1st 9 straight years what can you add to this debate if anything i think a lot of gold bugs out there are not going to like me and they're not going to like my response bit the way i see this is you have something in this is all going to come down to speed of transaction so anybody who reads history and sees you know 1920 s. germany it would it would by the time you take your money down to the store to buy something the price had doubled or tripled or whatever people were not accustomed to that type of scenario playing out because i've never seen it in their entire

life but for people that have read history and they look at that scenario playing out you then realize that we're about to go through all comes down to the speed at which you can transact so if you've got money in you're trying to send it over to a big coin exchange and it takes 2 days to close out the sell order you had for equity x y z and then you got to wait for another if you do a wire it might get there by the end of the day those 3 or 4 days in order to just get money on to a big $1.00 exchange is going to literally feel like for months now picture yourself owning a bar of gold that you have dug up in your backyard and securing it finding a buyer somehow securely sending it to that buyer right in order to conduct the transaction meanwhile the fastest horse which is literally transacting near immediate transaction clearance of payments on the block chain is pumping out a 1000 percent return measured in the last year because i think

a kind of suspect that's what going into 2021 and in through 2021 is going to look like as far as percentages right so you're going to be sitting there watching that and if you're trying to sell that gold in order to. put a little bit on the big point train it's going to literally feel like a decade went by while you're trying to get clearance of payment on it so i think that this is going to be where i think that this concern in this risk is going to hit its apex is probably around christmas time frame of this year when big queens up there trying to go beyond its previous all time high of 20000 i think that that's kind of the. the moment where people who are holding physical gold are going to literally soil themselves because they're going to be there and they're going to realize that they're in a very bad position relative to the buying power that they could have over into quite right so they found money is being debased the gold is just too clumsy and hard to move around takes days that leaves really only pick going in this

environment where speed counts anyway thanks so much for being on kaiser poor preston pish max such a pleasure stacy thank you so much i love you guys well on that note we got to say goodbye and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert gonna catch us on twitter it's kaiser report every sunday at 1 o'clock eastern standard time on the kaiser report twitter periscope handle watch us live for 45 minutes i bake cakes stacey does various exotic dancing it's the greatest thing on twitter until next time. during the vietnam war u.s. forces also. there was

a secret war. and for years the american people did not know. about our film my skin is officially. country per capita. millions of unexploded bombs still in danger lives in this small agricultural country. even today kids in laos fall victim to bombs dropped decades ago because the us making amends for their tragedy and loss. to the people need in that little land of mine. so what we've got to do is identify the threats that we have it's crazy. let it be an arms race. here in dramatic development only personally. i don't see it. will be successful very. time to sit down and talk.

the 19th in the headlines today several french schools are forced to close again just days after reopening as new code cases have been detected. as world health organizations decision making body meets to work on the next global efforts to tackle the pandemic ongoing president trump threatens to permanently its u.s. funding. belgian health care workers turned their backs on their prime minister in protest over the government's handling of the pandemic as the country. measures we speak to one of those medics. found at this location where the prime minister. was the right again.