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morning here on our team to national we'll be back with an in-depth look at all of our top stories in an hour's time to see that. kaiser the report still. max your steps because kaiser report was right as always all the time or always right warren buffett has been obviously watching this show he's told he's tuned out of what is c m b c and bloomberg you no longer listens to them because the 1st tweet hear the 1st chart this is what we've been pointing to and this is obviously what warren buffett has been reacting to the fed now own

a total of 22000 $913.00 different securities according to bloomberg it is the world's biggest investor. yeah so a lot of things here that we've been talking about that warren was late to the game you know we've been tracking his tardiness in many of his investment themes like very late apple very late to amazon he bailed out of airlines again for a 2nd time at a huge loss he got into gold very late and of course when he got into his gold stock people are saying well you know it seized on gold you see you know the stock is paying a dividend and he likes dividends but now we're seeing this move into japanese stocks and that confirms that he's getting dashing out of the u.s. dollar because as you point out the fed is them now muscling in on warren's territory right so warren can't go in there with these sweetheart deals and get these bailout deals in the sweetheart deals from these takeovers of acquisitions and huge positions that he builds up because the fed is now outbidding him so he's

got to go to japan now to find deals probably something he reluctantly to do because it signals that his saying is does he always says that never sell america short right well that's of buffett's doing he's essentially selling america short so he bought the 5 largest trading companies in japan these are the huge conglomerates he bought 5 percent of them and he says he may go up to 9.9 percent so this is. again the ongoing temper tantrum he's thrown since april when he told the world essentially that the fed outbid him for the 4 major airlines here that he owned 10 percent about 10 percent of the companies so he was going to rescue them bail them out but very favorable terms to him and has investors he was outbid by the fed who gave them billions of dollars for nothing in return except for keeping

employees you know in in their job up until october 1st and they're using that as a way to get some more free money but here warren buffet was like he was outbid by the fed and he said he's throwing a temper tantrum saying well dumping all his airline stocks immediately the entirety of it a huge loss dumping his bank shares again because the fed is the biggest player there he's not going to he knows that this next crisis that's coming he's not going to be able to do goldman sachs' sort of deals again where he got a huge preferable you know return in exchange for bailing them out in 20082009 so here he's doubly shorting the dollar but he can't like he's warren buffett he doesn't want to get in trouble with the authorities i say he can't just openly short the us dollar they openly kick in a stand on their face but what he's doing is by going along japanese conglomerates and including one of them by the way which is called the itochu and it was founded

in $858.00 but 9 among japanese trading companies it is distinguished by not being descended from an historical group which is the imperial power groups but by the strength of its textiles business and successful business operations and china so in a way it's also him going the us is losing its cachet as world's single superpower what u.s. dollar is losing its status as world reserve currency are moving into a post u.s. dollar as well. servia currency era and so buffett is picking up stakes and hauling out these he's moving to asia especially at the big portion of his portfolio and. deleo who has another huge day when the money management space is got 20 percent of his portfolio he's the world's biggest such fun now in actual gold bullion you know gold bullion surrogates and so that tells you also that the u.s. dollars days are numbered and i read that warren buffett actually bought the shares

just like any normal schmoe coke over on the market he didn't get a sweetheart deal he didn't get to go directly to the you know the board of directors and buy some deal straight from the company like he often will do here so he was like an ordinary investor using robin hood out and just buying up 5 percent of these companies and he said he may do more so it's an interesting thing to look at this is something that max and i have kind of been predicting as you know empires always fall slowly and then thought only everybody goes bankrupt slowly and then suddenly and that's what you're saying but warren buffett as we just recently covered you know he. $560000000.00 with barrick gold the largest gold miner in the world and here's the headline that followed right on this because after meeting with their investment advisors on august 26th this is the headline from $16000000000.00 ohio police and fire pension fund approved

a 5 percent allocation for gold this is to help diversify the funds portfolio and to hedge against the risk of inflation according to bloomberg news all right this is really big news you know in the buffett's investment into gold set the stage for this type of activity institutional money moving into gold he's kind of like the godfather of money managers a lot of ways and what he does that is makes it ok for others to do so the total global $100.00 chilean dollar money management. of funds being managed for those with discretionary funds who need their funds managed is right now a little less than one percent gold and so these pension funds have stayed away from gold because it pays no income but with rates at 0 we're going negative at best the longer negative and the inflation genie is out of the bottle so now they're if they do a 5 percent allocation of gold and you figure this new apply globally to the global

money market business they that means are going from less than $1.00 trillion invested in gold to more than 5 trillion or more and the whole gold market itself is a in a trillion rate have chilean so the demand for gold is about to increase in the in that sense by the managed money business by 500 percent so there's not that much gold around it's finite resource and when you put it against that type of number you can't source it. so we're going to start to see either a gold just gaps open at $4000.01 day or we're going have a global reset as many predict against the dollar as we did during bretton woods or we did the 1930 s. i should say than $1000.00 thirties america revalued its gold by 40 percent yeah well because while the largely the size of the gold market is about 9 chilean dollars just under 9 trillion dollars a lot of it most of it is whole held by central banks who aren't you know that's

not really investable gold for the ordinary person only about a trillion dollars of the market is invest investable so if if a couple you know if hundreds of billions of dollars now interest that market it does drive the price up especially and i day of pandemic where supply is becoming shorter and shorter but in terms of this ohio police and fire pension fund what they're actually even betting bigger than just buying 5 percent allocation to gold is their leveraging their bets because additionally the fund plans on adding the gold stake by borrowing the fund is reportedly increasing its leverage from 20 to 25 percent to make the change so they're betting that if they just put a smaller amount they could just have much bigger gains there they're betting on a huge increase. right wow you know leveraging a pension fund is probably not a good idea and they'll get the big bang for their buck they should just buy more

gold and leave the leveraged to the suckers and so the likes of ray dally oh and stuff well so here's a good assessment of that i found on twitter from garrick moore and he said barbara relic pet rock public enemy number one to gold has begun a major transition buffett is attracted to enormous cash flow and dividend potential beric then reserve bank of india signals higher allocation and now ohio police and fire pension approves the 5 percent allocation so as we've been saying as we said at the 1st of our summer solution series that there's a sea change in the psychology of the global investment community everybody senses you know if the elephant runs away from this the now me you know warren buffett is one of the elephants of the investment world and he's if he's running away from the inflation tsunami coming and ray dally you know the largest investment fund in the world if they're running towards you know away from the tsunami then you know the

ordinary person should not fight the elephant running their instinct is perhaps better than there is a great. novel lena who runs the russian social bank was ahead of everybody by hundreds and hundreds of tons for years now and now everyone's singing her song and again you know this tsunami of inflation coming and by the way also like a tsunami of of deflation of a collapse and all the so-called value that's wrapped up in all of this debt that collapses and inflation soars in the rest of the economy with house prices education as we have already been soaring but also food prices car prices you know that the ordinary materials of life and again that's one of the bets that warren buffett is making with his investments in these conglomerates because there's huge commodity. plays within that so he's he's he's betting on inflation by trying to do it without causing a stampede as much as possible just i'm just doing it for the dividends and things

like that but here's a great chart that keeps on getting updated by cent heinrich and i says what would you do in this situation so m 2 money supply as we have seen has keeps on going up but it's really gone parabolic this year and the money velocity continues to collapse and has just completely fallen off a cliff and the last year as the rich get way richer hundreds of billions of dollars as we cover jeff bezos has made 75000000000 and net worth just from the. gains in the inflation and the stock market here from the fed printing money so it's not circulating you know jeff bezos had a hard time spending 130000000000 when he was only worth that in january is he going to spend 200000000000 you know what's he going to spend it on when we want to see this this overlay of these 2 charts being popping up more and more i mean kaiser report we started to make this comparison 5 years ago just show money

velocity was crashing against money supply with them too and now it's become you know common wisdom has become you know the talking point for a lot of folks and it is the one chart that explains everything they need to know about why the u.s. the u.s. dollar is losing global reserves well we all grew up maybe not kids today but we all grew up playing monopoly and we know what happens when our plate when one person owns all of the real estate on the board and has all the cash nobody else can play right because there's no money to go around and the game is over so that's what happens right here and it's a game of monopoly where the person who prints all has all the money to begin with so they buy all the real stay with the money they're printing and it's a special black lives matter version of monopoly so any black person rolls the dice they go immediately to prison that's the american system or. we're going to take a break when we come back much more coming your way.

join me every thursday on the alex salmond show and i'll be speaking to guest on

the world of politics sports business i'm show business i'll see you then. welcome back to the kaiser report imax keyser time now to turn to cost over there crest cat capital hobby welcome to the show and that's thanks for having me it's a pleasure to be here craig well thanks for coming on and i follow you on twitter and that's why i get most of my smart sounding sound bites i borrow them from smart people like you now earlier this week you tweeted a chart of tesla versus venezuelan stock exchange and you wrote quote tesla has outperformed hyperinflated venezuelan stocks in the last year this is turning into a banana republic none of us own enough gold all right so this is what caught my

eye here because we've been talking about the venezuelan stock market it's been on a huge bull run people don't understand that what that means except for us so dig into this for us a little bit if you can't. sure more originally from brazil so i definitely went through a lot of what happened in that mid ninety's than brazil was devalued its currency significantly we have actually had to change currencies at the time and that caused a hyperinflation mode in which stocks actually went up significantly at that time and it's hard to say i mean i think i think in terms of the math of all imbalances that we have debt wise valuation wise me were asked we're probably going to meet a nice friendly to something like that at some point i don't know when but at some point we're probably going to go towards that direction i think the comparison with business well is just what we're seeing with a company that makes no money and we're seeing that across the board we have zoomed yesterday crease it is earning significant i think a big increase if you ask that i 32 times but it's still trades at over $128.00

times each yes of 2022 and this is you know a situation where valuations like that is really happening all over the equity markets in the u.s. i think i think it's all a product of easy money that we've seen throughout the years and it's getting a lot worse recently as we heard unlimited if you read from that from powell in the last few months i think that it's just as impactful as it was back in the 1971 when we broke the gold standard here in the u.s. it that was a very impactful moment in which in marked 'd a real lack of fine a show monetary and fiscal discipline in general and which cause a fanatic gold bull market for another 10 years i think we're in a very similar environment today with its recent a fat q e 2 to infinity and i think you know it's a great time on going and i think anybody has any idea what we probably could

happen with precious metals here i think it's very positive for for death space and especially for miners to have been so depressed for so long so there's. a lot of opportunities there to unpack but certainly those are my comments in terms of what's going on with esplanade there are crazy stocks moving in absurd directions parabolic really right now when you look at the venezuelan stock market or zimbabwe or iran you know you have these incredible moves on the up side and these are economies that are experiencing hyper inflation and there's a huge wealth disparity obviously the vast majority of venezuelans are not buying stocks because they're grappling with hyper inflation same thing with the bob way and iran and america it seems like that's the deal happening here right because 90 percent of the stocks are owned by 10 percent of the population and they are the

1st to get the money as a rolls off the printing press but they can tell you the fact. and they go into the stock market because they want to avoid money they want to avoid the u.s. dollar and is it too much of a stretch to compare venezuela and and america right now in terms of what's happening on the stock market versus the underlying currency not the venezuelan all of our but the u.s. dollar is the u.s. dollar and evil have been south america is the u.s. dollar on the verge of of do you see it exhibiting the kind of characteristics one sees before hyperinflationary collapse and there's the confidence evaporates and the currency tabi look a actually have a very different view than a lot of people in terms of the dollar i think race to the bottom of all fear currencies really but perhaps a dollar looks for the mentally stronger than other places in my view and that's

just because the way the world functions in terms of its all around the dollar i think for that change will take you know perhaps a lot more time than a lot of people think what you referred to returns of the ownership of of assets relative to of the population in venice wow a certainly is a case in the u.s. matter fact if you look at the fed this balance sheet in just chart that along with a chart looking at the bottom 50 percent of the u.s. relative to the overall piii can see that those 2 are in 1st correlated you which means the more the federal reserve prints the last money those are going to last they're going to participate of the overall market in terms of being part of the overall pif so i think this is all linked. to the monetary policies we've seen but the federal reserve doesn't have an option here it really is painted into a corner it has 2 options you can keep buying assets and suppressing interest rates given the levels of debt that we have in system and just have gold silver miners

point in some other assets their service is only. hurted if for the monetary system to surge as we've seen so far or you can stop doing it all in the system's going to collapse why because certainly corporate bond yields don't deserve to be where they are today and they're only there because of manipulation by by central banks i just showed a chart of corporate bond yields below inflation rates today you know who in their right minds would ever buy a corporate bond extremely from a sexually indebted company less than inflation when you can buy precious metals or even a minor way to a much better forgetful yield then you can ever find anywhere in the markets growing fundamentally as well so it's you know it's setting up perfectly for this industry but also going back to your question i don't know if the west is headed towards affinis well

a pile of of issues that we have there 'd but you know i think it's very possible have some might best case scenario where i think it's going to happen is just you know there is you know precious metals have lost their space in terms of asset allocation among large allocators and i think that that's about 4 a change and so you know the real hope respect. of the world those large funds to happy doing that for so long i think that's about a change in precious metals who started to become more of a particular bit more in terms of that and the other thing to point out is that when you don't have any economic or get a konami growth which is the case in us and there's no company fundamentally wrong with me aside from a very few exceptions. you know most investors are going to start looking for where is growth happening in this market in certainly is in the minors space so i think there's again a lot of impact in this answer as well i don't see necessarily the same sign is

probably the same resolution of those issues you know you asked for a place like this. well you know that you know the political environment is very different we're you know even though it's a terrible political environment we're going through in the u.s. certainly you can't rank in the same level of places like brazil and even this well or even china so i think i think there's a difference even though i think we're in a race to the bottom with all future currencies so the real question is which ones are going to be the worse so gold is probably the best assets won't environment like that and gold ringback begins up leading to a lot of other assets to grow big point or silver miners and so forth so i think there is you know it's the big giant market that moves all the other things and as a domino effect and so i think there's a lot of opportunity it's doesn't mean we're certainly bearish an economy global economy general that there's not a lot of opportunity better fx quite the opposite i think there's

a lot of good things that could have come out from all this in terms of of investment in alternative of making money to chapel lies and from this environment right ok look jesse fell there on twitter i follow numbers and prices up 16 and a half percent chase prices up 7.3 percent lunchmeat up 8 point one percent diaper prices up 8.8 percent laundry detergent prices up 9.2 percent that is real inflation i mean is that going to cause i'm restless way of saying and south america yes i think in relative terms no but however what we're seeing certainly is very similar to what we saw in even in brazil you know obviously again in relative terms what's happened even as well it's hard to compare with but it certainly is is is is significant what's happening in terms of the social unrest in the political environment there were seen any west i think what you refer to in terms of the

c.p.i. and some of the numbers there are probably manipulated as we all know to the downside and understated in terms of with. inflation and in this environment i think there is also another thing that is even more employ there's a major reason why we haven't seen real inflation area or says in my view in the u.s. and what i'm not going about you know the rise in real estate market the rise in rental properties in general medical costs that is all you know given everyone knows that those are extremely high right now in terms of prices and cut and costs for those but i'm talking about not just any goods and services they're actually being impacted by a lot of the technological advances that have the not foreseen it's a deflationary environment in some of the places you can example back in a business take care of for a lot mower money than we do today with hoover that's just one example of many i think who really allowed

a lot of those companies to survive in this environment and provide goods and services at those extremely cheap levels truly has been certainly the. environment right the record low 'd ios that we've seen in the world but the 2nd major piece of this commodity commodities market f. nothing have done nothing but gone flat and down for the last decade or so and so i think that has an impact on the prices of goods and services and we'll i'd highly doubt that commodities hard assets in general who have such a terrible decade as we had in this last 10 years in the next 10 years i think it's going to look very different and with that i think that the change in c.p.i. for his would be tremendous i suggest anybody to take this t.d.i. number from the federal reserve website and the number and make an average just a normal historical average of 5 years rolling average and then in it in the same

chart but on commodities commodities index and that chart and you can see it follow each other very closely in other words if we have a pickup in commodity. if we had asked of me shoes in regards. globally in which people were investors who can looking for forms to protect those they're very fast and by looking for hard assets i think that's going to create an environment where commodities will be trading at much higher levels and also i think precious metals are the ones to lead that that pack at least that's that's what tends to happen the sort and then you have those disruptions because as the social unrest in not just in the west but other places in the world i think the geopolitical environments going to eat up this well essentially between china and he wes right hey great cut off point we're going to keep it for a 2nd segment to pick up on that point us china relations in a 2nd segment but thanks for being on the 1st segment tabi thank you for i was

going to do it for this edition of the kaiser report with me max kaiser and stacy herbert want to thank our guest tabi cost of press cap capital if you want to catch us on twitter at kaiser report until next time. you just have to fly between 2 blue pounders fast as you can. watch article i.i. section of the produce to push through the procedure as. an explanation for some of the bleachers and. the engine stories important. of course more russians in racing use competition in the extreme to have a full use the specified route between the lines with the pastor's time just

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