passion is the ultimate. going to wells dry no posts were. points your thirst for action. backscatter this is the cars report never get up about never get out above their get off the boat we're going into the heart of darkness all the way up the river and remember never get off the boat stay safe max we've made it to the heart of darkness all of that up this river of money printing that has been going on for the past 20 years we're at that and we've arrived for j. colonel kurtz powell has his acolytes around him the deadest hopper character

the heads on the you know the sky skulls and spikes and all that stuff and you can see that the madness that we had the willard or the marlowe in the case of the joseph conrad's heart of darkness character that we've arrived into this heart of darkness this mad death in the stars hurts filed for bankruptcy so obviously. the price so warners another look at that same chart the market summarized the $1.00 chart chapter 11 company hertz is now worth more than before the bankruptcy what cheap money can do incredible oh oh oh yeah captain well are going up forever into the heart of darkness pursuing colonel kurtz who is in this analogy the central bank he's gone rogue his methods are on sound he's surrounded by heads on stakes as you mention and we're artifacts and jungle creatures and of course that's the balance sheet of the federal reserve bank and dennis hopper is an acolyte

he's hopping up and down talking about fractions talking on fractions you know what does that mean i think you've got some thoughts about that and captain willard would be coin right but coin is now made it to the gates of the sun. jewel bank and chaos just like of course apocalypse now was a remake of heart of darkness and it really reflects the chaos of insanity of the vietnam war america's heart of darkness america's plunge into imperialistic insanity by spending billions to conquer really nothing of vital interest but spending billions and trillions to get their roots are it's a repeat of the insanity but on a much more epic scale exterminate the brutes of course is anybody without any debt the brutes are those without debt and the currents in the situation is and the empire is the empire of debt now however if you look at it with an austrian eye and

call manga says that all value is derived from human consciousness so here you have the photojournalist played by dennis hopper and dennis hopper of course a journalist there in the vietnam war in that case that which has spilled over into the cambodian border is you know the journalist is supposed to be a neutral observer not become a participant in cheering on empire but most of our journalists and most people do have huge piles of debt do believe in the banking system and our central bank system so they are the sort of dennis hopper character so when dennis hopper says it's very simple dialectics write 1390 maybes no supposes no fractions you can't travel in space you can't go into space you know without like you know with fractions what are you going to land on one quarter 3 eights what are you going to do when you get from here to venus or something that's dialectic physics ok so here

we have a situation that is not supposed to happen that the millennial since we are totally post 97 when they're all born from 1900 they've never known sound money they've only known unsound money so to them they're you know we're ordinary people born before 980 anybody born before 1980. before 971 they know what sound is supposed to look like right and they arrive and they see the horror that is the colonel kurtz and all his crazy village and acolytes there so that to the millennial are easy buying on robin hood when they buy hertz. which is a bankrupt company it just filed for chapter 11 and here's the way bloomberg news again old school pretty unsound money pre unsound methods hurt since possibly worthless stock soars in risky recovery bet so there's this notion that

we're in a v. shaped recovery and that also used car prices are soaring so a lot of people on robin hood jumped into it and started buying the shares even though chapter 11 shareholders get wiped out to get nothing but to them in their human consciousness surrounded by currents and all his free money they're like. it's landing out of. a right to dennis hopper character obviously would be rachel maddow but in an economy with a central bank that prices money and 0 then all fundamental our analysis is out the window right because all fundamental analysis of what a security should be worth to school of warren buffett comes from like a dividend discount model or future value versus current value and it's all based around what the cost of money is and particularly the pen year treasury bond and you can do a regression model and figure out well this company like hertz might be worth x. and this company avis might be worth while in washington invest in experts is why

but when the price of money is then all stocks become memes stocks are now means hertz is not a company it's not a stock it is a mean and it's has 0 value and is traded with money that also has 0 value expressed as 0 percent interest rate that's what that means it has no value and people on robin-hood who are accessing that app for free again no value no 0 cost just free so you can freely excess that app with your free money that was given away freely by the government as part of the pandemic relief program to trade shares in a worthless company called hertz i want to 100 percent. and this is what happens in an economy where the central bank like colonel kurtz and apocalypse now has gone rogue and you have to think about ways to right the boat here which would then mean getting captain willard to travel up the river and to terminate with extreme

prejudice which in this case means recalling bitcoin gold silver balance sheets earnings anybody who had any experience with a sound money economy the things that used to matter to a sound economy a sound financial system any of these metrics so even somebody like warren buffett who looks at balance sheets and he's a value investor so for example he dumped all his airline stocks at the bottom there they were bought by robin hood out 1st you know the other side of the trade was the robin hood apparatus they're up 65 percent carl icahn another guy from probably the silent generation perhaps boomer he is you know dumped his hertz stock he owned hertz he saw he owned about 40 percent of it he saw that they were going to declare bankruptcy and he knows and the old system that we've had for thousands of years that equity holders lose everything they lose all their equity so he

dumped everything but this new generation who are only no on sound money only know colonel hearses way this world makes sense to them so they can land on a fraction of the atlanta fed just said the economy in the 2nd quarter down 51 percent. half of what it was a fraction of what it was and yet stock markets nasdaq just had an all time high so for them it makes perfect sense because they can land on a fraction right in fact robin-hood or cash or other and now offers fractional shares of of stocks so they are in fact planning on fractional shares you can buy a fraction of a share and that's something relatively new but you kind of extend the apocalypse now metaphor so a member of the same in the movie where they go passed an old colonial french craddick dinner party and that's where warren buffett is that's where carl icahn are you know they're they're clinging on to the past and they're kind of like on

the way into the heart of darkness you would pass this old french colonial outpost which would represent the buffets and the call icons of the world as you head deeper into the psychosis that is jay powell and everyone who's come before him at the set and the exterminate with extreme prejudice moment is basically you have to end this insanity for this insanity in the financial world and geo political world and domestic world to end because you know here even bloomberg news like i'm saying it's old school finance and they don't have it they're trying to say it very politely like with a british the flop or a lip about like. you know these are possibly worthless stock and they are but who knows they're saying maybe were and who were all that maybe you know all value is subjective and if they think you know if these people buying these stocks want to keep it alive in their own separate parallel universe of a crazy village in the middle of this heart of darkness that we have created that

the fed has created the bloomberg news has supported p.p.p. this is ok they point out that you know those positives the side of the fact that the economy might be recovering it's only down half you know instead of maybe 75 percent so i mean. that's better and maybe there's a better market now for used cars those positives hide hurts as equity holders are still taking on significant risk shareholders rarely recover anything from companies that a file for chapter 11 because under u.s. bankruptcy code all of the company's debts must be repaid in full before stockholders recover anything well you know when i was a stock broker in the 1980 s. this type of situation in the herx stock being traded would not have existed for the simple reason that you would not have anyone making a market in herb's stock because there would be no the quiddity there would be no counterparty there would be no buyers and sellers because a bankrupt company so why is her stock even being traded in their 2020 is because

the market maker that function that allows market orders to happen instantaneous buys and sells and to be the intermediary is funded with 0 percent money and it's mostly done by robots and algorithms so the fact that you've got a bunch of misinformed robinhood traders putting in by orders on what should be a delisted bankrupt companies doesn't change the fact that an algorithm sees the buy orders and dips into a pool of free money to match those orders as part of the counterparty job of a market maker and so it is now the beginning of a mean economy driven entirely by names i mean like pepe the frog was me make a metaphor chan and it basically defeated hillary clinton in 2016 because she was on she was that the french aristocratic party in the middle of the jungle she didn't understand that the world had changed every member dennis hopper's quote is

about dialectics so you know the definition of dialectics the art of investigating are discussing the truth of opinions so opinions are often wrong but markets are always right so in terms of this hurts share price in the pink to class. saying green is robin hood app you know this is an app for americans to buy stocks and cryptocurrency s. and things like that and they're pouring into it as it's going down so is the market right. or their opinions right like so it is the nature of this discussion is especially remarkably that the other side of these trades including american airlines is another one similar to this is that the other side of this trade on the robin hood out are the titans of art world of of investing so it's a remarkable moment a clash of contradictions dialectics look at contradictions within a society and yes i think most of the political class most of the elite media class

and most of the elite investing class like warren buffett are that in that french chateau calmly eating like with their butler serving them in the middle of this chaos right when you strip out all fundamental analysis what you're left with is gambling it's just pure gambling which is part of my model of the casino gulag right so are all locked down on the good leg and we're all on our robin hood gambling is just pure gambling well we've got to go but in the words of kilgore another character from apocalypse now you know some day this war is going to end.

is you'll be via reflection of reality. in a world transformed. what will make you feel safe from. isolation or community. are you going the right way or are you being led so. direct. what is truth what is faith. in the world corrupted you need to descend. to join us in the depths. for a mate in the shallows. the big. one else seemed wrong why don't we all just don't all. the world

get to shape our disdain to come to advocate and engagement equals betrayal. when so many find themselves worlds apart we choose to look for common ground. welcome back to the kaiser report imax keyser time now to go to jeff booth these entrepreneur checked later author of the price of tomorrow why deflation is the key to an abundant future this book is getting huge traction everywhere it's causing quite a stir geoff booth welcome thanks for having me max all right so it's just the stablish

the basic premise here so sense the 1990 s. and the introduction of the internet and the answer doc sharon of the new network economy that relies on the digital economy where the underlying asset digitization the cost is falling exponentially the cost for storing processing and storing processing and the band with for this new economy the price is always collapsing toward a price point called 0 that a some pot a curve that's deflation and you're pointing out that jobs are kind of being discerned to mediated out of existence and you're also positing that the central bank to make up the difference is engaged in massive money printing and the end of the result of all this will be an extreme society of overlords at the fed in the central bank and everyone else is basically unemployed is that

a fair assessment sir you've pretty much nailed it that's ok so the title of the book is the key to an abundant future right so the abundance here would be the abundance of these free. economy that's essentially free what what kevin kline wrote about in his book in 1905 the increased return economics and so where do you take it from there take it from there sir. so you know you said it we have massive declines in prices coming because of technology and i can see. why is it that isn't a good say if you look at your phone just about every hour on it is free you have more more more and more and more abundance all the time my 1st phone costs 2 $1000.00 and our 1st phone bill for cell phone bill cost $1200.00 and all it is made phone calls now if you think about the power that you have sitting in your phone from a camera 2 or virtual assistant everything it's just all coming down that are crazy

costs you can buy it doesn't make you stop buying the newest phone either it's not a place in like we used to see where people stock purchases we line up. the apple store for an the new phone when we can buy last year's phone for $50.00 an implant . and all of that is coming as it is so that's one giant force driving into society that's making prices come down and iscariot coming against another giant or salute which is a money printing machine which is just in those forces competing against each other are driving essentially asset prices. and all of the secondary taxes. anxiety or anxiety loss of hope people people in iraq race trying to we're. trying to work harder and harder to keep up with rising our prices to be that are created in the 1st place by the center governments trying to stop slashing and 1st

course right ok so i think the forces they lay out the book i mean it's pretty well established now he can see a structural unemployment as now being part of the economy and almost a permanent underclass in the face of these tech overlords who are wielding this economic a bully stick that is driven by their free kind of access to this new way of economy but let me ask you this the pentagon just apparently released a study and this was reported by the answer sept it's called the z. belly and the threat is that the generations a those born after 1996 are on to the game they feel they've sussed it out they figured it all out now particularly how the fed is connected to all this and so they're buying bitcoin and big quaint being a hard money equivalent to gold and a way to have an confiscate a ball immutable wealth as a way to fight back and this is kind of new in they pop the popular culture is just

getting wind of this but this is been going on now for a few years so generation the he is going to war against the tech overlords do you see that happening and what are their chances of winning. yeah 1st of all i see their claim as a likely candidate for a very likely candidate or a world reserve currency so i see it as as a really good chance of winning over time because it works on a network effect. and and as it increases the current currency is only trust and not an obligation so so why do you trust the us currency it it's not that facing zeros on the currency you trust the obligation of the government to have an exchange of value and as parents do more and more to erode the exchange of value all over the world something will emerge and decline seems to be that one

that's emerging as something that the people trust more and so currency is it can go on trial a long time like when they break they break her majesty and so a loss of loss of face happens in an instant would you say this is ray of hope for jhansi in other words. the there on this robin hood app which is easily accessible app they can trade stocks they can buy pick coin they have really done something remarkable while warren buffett was dumping his airline stocks and panic selling that these guys on kids jhansi and robin hat have been buying same thing with hertz as as carl icahn was puking out his cert stock at the low jhansi on robin at was buying it up they prices have double triple quadruple then they're rolling profits over in typical i mean are they now masters of the game have they figured it out and you know i say this there were a lot of bad yes so i hope so the but but i would say that i would say this this is

a structural problem and and governments all over the world are trying they're creating actually more problem by trying to fight typical policy response was a structural problem that deflation is a good to technology technological deflation is a good today. i don't know why if we're fighting so hard that's actually the core reason i wrote the book because isn't it good whenever we're in places so isn't that what we want and if it traces we're led to follow that natural order of things we wouldn't require the same amount of jobs because the more they show more people don't show up so off from from nothing and trying to trying to pay for food and housing and education that's artificially in prison or in play that so that's that's why i wrote the book it's in seems insane to me if a gravity because there's no way central banks are going to win and right on that subject isn't great if prices fall well you know in our economy in america it's on

a fee at currency standard in a fractional reserve bank standard in a central bank backed standard it's not on a gold standard and in america we have capitalism based on the credit cycle which is driven by a boom and bust and driven by greed so we want entrepreneurs to be really greedy bara lots of money which we make shape with through the facts system and fractional reserve system and we like inflation for that very reason so that we can we can create economic growth above a natural corowa if due to population and innovation exciter ah we want to have you know be the king of the world and we need credit to do that we and then gold it is too limiting for us so we have the out money so when you say prices going down it's great that's true but it's not the american system unless we go back to gold unless we go back to create bitcoin as the standard and we have sound money as long as we

have junk money we're not going to have anything but with this worshipping this keynesian worship of debt all right that's the american religion so how do you change that so i completely agree with you that inflation is is is just wealth transfer. and so that wealth transfer tips a certain class of people and now that wealth transfer with greater and greater greater and greater printing to stop deflation is actually just moving up the curve it's moving up to more and more so now middle class is caught in it if you have assets and people are and if you're getting you're winning. billionaires the billionaires just in the u.s. just gained 565000000000 since over started because of the because of the printing . is hitting society and people are fed up so it's going to break no matter it's going to break no matter what now actually we're causing it to break in

a disorderly way. so so you could have if you backtracked 20 years ago you could have bought a system failed and gone through a recession and then and then back to growth again today it's going to take a deep deep pression and that depression is going to come either way it's going to be the depression is going to come now if say if us said we're going to go to sound money and debt is going to be destroyed or it's going to come through a currency crisis that creates hyperinflation and then sound money but we're going through a depression we're going back to sound money no matter what you being attacked giant i think it's fair to say and that co-founder of a multi $100000000000.00 behave with of technology you are a traitor a silicon valley for sure hat what do you tell your friends when you get together around the high tech table and you say hey my name is jeff both and the reason why i write heading into problems is because the central bank did this that message

carry in silicon valley are they look at you like jeff you hear you're crazy what is the central bank have to do with anything i think anybody that understands kind of a bill would look at 1st principles and know and a lot of tech entrepreneurs would look at 1st principles they understand how to how deflationary teka how you. oh how exactly how efficient technique make sense and they understand how fast is moving into society or efficient hosen says moving into society so most of the technology and technological taxation is beyond that that we've been talking about so far and all its 2nd order effects to society we're looking at a point in time now looking forward because tech is it is exponential nature looking forward the amount of printing needs to double every 2 years this or amount of debt creation printing whatever you low globally to try to keep us it even on that scale so most of the tech entrepreneurs that i would talk to actually agree

with me that they would say this is happening and what do we do about it i wrote the book so we can start having a conversation about what we could do about it. because because it seemed like you maxed stacy i you've been talking about this for a long time and i've been talking about this for 10 years and watching these trends and i just saw my kids are going to grow up in a different world and i grew up going without any of the chances without any that thing out because we're going to go into revolutionary war if if if if the 1st principles are discussed in a debate how to transition to a better future fair enough jeff gerth thanks so much for being on the kaiser report thank you all right and that's going to do it for this episode of the kaiser report with me max kaiser and stacy herbert like to thank our guest jeff both the author of this book the price of tomorrow check it out it is really making waves

out there and if you like to get in touch with us on twitter it's kaiser report until next time. right there. where it could be in this house right now. it's hard. to make minimum wage he can be recruited.

and sell drugs and make hundreds of dollars a day. listeners so when a person is still throat it's in. sin if you don't know how. it's flying to say this. is one of. they can't find somewhere else because they have a criminal record. because they don't have the money. anyway. they. want black people simple thing might want one black or they want one black person they want one black abyss and one black. economic. reason it is often imprecise in almost always open to see what you want

to see in many ways to economics remains an armed robber in the mix situations. is much more than about our politics it's about the way we live for this foreseeable future are we witnessing the recovery is so trying to predict. good use of must i think is real bestowed a lot more than that but you wish it may be it will stop daniel geale especially in the wicked would cause him to produce a mistake in the we were due to his wisdom morsi myth if that's a good deal with national congress again if she added nothing to it that one could love them you know we buy the if you believe a she you believe she needs you in the chanels. but they will actually squish them and then when you guys. look at the sea life to consider somebody's 60 feet asked by the shoe.