last time we chased. each one of will carrying 20 kilos 'd of drugs. is the main thing. they have. i. mean. i don't know maybe they'll. make or. break. for. around one.

hi there this is the kaiser report i'm max kaiser lots going on social media investing types stacey oh yeah of course it's. a fortnight king of the day traders on social media and he is asking hey even months do something of course harkens back to the 2008 financial crisis 20082009 when jim cramer on the media of that day which was the financial news cable news fright that was the big place he went for financial news and he was demanding that the fed do something to bail out because all his friends of bear stearns were losing all their money losing all their wealth losing their jobs they have to do something this is no time to be an academic get a bell out well here day fortnight went long very very long on tesla down 30

percent and just a week right well you know we've been talking about tesla for you know a number wix a few months because it is a phenomenon and the point i've been making from day one is that it's a me it's a mean that has a market valuation at one point over $400000000000.00 and it taps into people who trade means and these are generations e.a.a. and the millennial is on the robin of apps and other platforms and means have no fundamental value there's nothing better it's just it's a murmur ation like starlings in the sky they congregate and then they disperse and people congregate around this murmur ation of a stock called tesla and now they're dispersing and there's no fundamental value to be that would suggest it's worth more than you know 80. percent below its

current price or market cap and to show you how easy it is to create a new meaning to take the place of the tesla me nickel nicola. they just did a deal ford and their stock went up by 50 percent based on their mean of electric cars so. you know i mean i don't know what to tell you. this was predictable if all value derives from human consciousness and human consciousness is now so you know attention deficit disorder sort of television short attention span jumping from idea to idea multitasking and multiprocessor is hundreds of browsers open yes i'm talking about myself and you know your attention span only has a few moment your consciousness of any single me more idea is very limited for a few moments sometimes 3 seconds so this is subject to that so day fortnight i was huge on social media for

a few weeks and now he's gone he's over peak does that mean as. well hero he was like the day of kramer for the jim beam or the jim kramer you know with those green or and you know i mean i mean this is jim cramer had a plastic hammer as well during his in told us you know. jon stewart who was big on cable to see was a comedian who was on t.v. for a while he ripped james cramer apart in an interview and exposed him as a because he admits he likes to manipulate prices james kramer any has a tape of him saying this and jon stewart replated for him and he felt quite embarrassed but so this is just a repeat of that scene and so who will be the new dave portland's and somebody is in the wings they'll be the new dave portnoy i might add in response to his 3 f on this one tesla announces $5000000000.00 at the market stock sale. so certainly iran

last did a good job as the c.e.o. dumping on chumps on robin hood out following day fortnight so they dumped right there and the stock collapse plus the market composition i believe triggered a vesting schedule for him that's worth hundreds of billions of dollars alternately . perhaps so he's and the lot of innuendo and allegations of manipulation in the options market in terms of the stock price so you know you're dealing with some pretty sophisticated folks out there and particularly the options traders the know they've lost billions of dollars they're trying to discourage people from doing that they did it in a way yeah we cover the options market the last episode and they apparently did have some play in the whole tesla thing and it could have been solved bank it could have been all these robin hood traders because retail investors were the largest options traders in the world but you know back in the real economy one of the smart guys in the room always has allegedly been dr copper so you know we're going to

look at this weird copper story out of china and there's a few explanations for it possibly wow check out china's copper binge over 2000000 tons imported change june to august never seen the scale of by before and you can see it's way off the chart this is going back well past 2001 and this chart and there copper consumption has been climbing relentlessly over the past 20 years . there was a huge gap in january and february during the coronavirus crisis where there's no imports at all of copper so it could just be making up for that mark malloch over there at incremental he he says that this is basically them shorting the dollar it could be them getting ready for inflation and many of the comments were of course saying suggesting that this could be them preparing for war as well but copper is a strategic metal and all those 3 things could be implied and so to ignore this

would be at your peril because this is an important. feature and they say that the underlying implications for inflation we see that across the board for assets are moving in price and with the exception of oil but that is a very political politicized the potential for set up for a conflict is real because you know nobody outlawed conflict and that's been going on for millions of years the men tend to get in the conflicts and periods of peace are somewhat rare and the i.d.f. shorting the dollar by hoarding copper is also very real because the copper the dollars were period of dollars ations so if that's the case then you've got to load up on some of these things now and so that should be a very important warning signal terms of the argument for inflation of course the supply chain those we've known for the past few months 67 months of this pandemic have been knocked offline so that is causing inflation in china and food prices and

you know that that's one of the most important inflation's to look at this is a headline in july chinese food prices rose by 13 percent year over year amidst trade wars with the u.s. strongly and swine flu beijing is worried about food security she orders food saving drive school principal shame pupils by demonstrative li consuming food leftovers and this is a chinese teacher is finished. leftovers to heed she's antiflu do waste call it kind of feels like it should be a good analogy for what's going on in the stock markets and dave portnoy and his followers and the pleading for them to like somebody has to eat these losses right this is the fed policy jim cramer you know one day a day for tonight we'll go to jim cramer and not not to jim cramer but to jay powerful plead with a palace eat his unused luncheon eat lunch right now he's still in the old school

of like capitalism you appeal to the c.e.o.'s like do something make your stock price go up he realized that so i must is not where the power lies as with the the fed and you've got to have the fed start eating your own in bags of stocks right so you've got it get see that woman eating that food the principle we have to get a pal to eat dave courtney's bag of tesla shares yeah exactly at their 40th on the learning curve you know he hasn't reached the the the head of the state get in terms of the fed he will figure that out but you never are even a year ago 2 enormous problems in the world war over tourism in all major cities and raging obesity everywhere in the world so what mother nature do she gave us this cold and virus and there's not a tourism problem anymore in these major cities as a matter of fact america's those in $3000000000.00

a week in lost tourist dollars and the looks like based on this photo the obesity problem is going to be addressed as well yeah ok but there's a supply issue that's going to continue into this the 2nd you know we've if there's a 2nd wave of this pandemic we have new fiscal policies coming out new fiscal stimulus so who knows how many more chileans are going to be added to our budget deficit which is going to cause more inflation we know that the likes of day fortnight are going to send his army of robin hood apparatus to jay powell and to manage it. i don't hear that because as we have discovered that money printing can't fix supply chains exactly right and so the food is is beholden to the supply chain to a large degree and so no matter how much they print those twinkies might not get into the lunch boxes of folks and therefore they may have a cure for obesity you know i'm just looking at history and what happened in the great depression and if this is like another great depression even though the fed

thinks they can print to the way you know we saw the same thing with supply chains and disorder in the food market and prices back in the 1930 s. during the great depression we saw people leave berlin and germany for example and go attack farmers because they blamed them for the hyperinflation of food prices that it was the farmers fault here is the same situation but what i'm saying is at the end of the day portnoy's going to appeal to jay powell to bail out his his used lunch jay powell will do it because he has to because of the public's perception so he's got to maintain perception for the bag holders that there'll be a fed put the fed will buy their bags down they'll do that so there's a way to do it is you've got a classified as a strategically important institution for the american economy that's like all the banks got under that category yes if last a good bench a pile the tesla is a strategically important financial institution then jay powell will be buying tussle stock and bailout day for me but doesn't care he's already bailed out he's

already sold all his shares he's got billions and billions of dollars he's got tens of billions of dollars when he had access to the media and he said go on joe rogan you need to go and a party show so therefore he would have to classify tesla as a strategic underlying and valuable asset to get the bailout for dave portnoy and to help his being remember it's all about me management well dave portnoy is the jim cramer of this era perhaps we don't know it like. he's buying also he's been pumping false sorts of stocks and he stocks also some random names so we don't know what what sort of industries he could possibly push to be strategic industries and get a bailout from the fed but i think the ballots are coming i think we're going to see the equivalent of this this is my last point here with this medium and this analogy that we're going to have these principals eating your used lunch and order to that that's what the fiscal stimulus says that's what the fed quantitative easing is it's just as absurd as this and desperate there's

a sense that there's no real plan they've even though it's a planned economy like they want to have a planned economy and a planned financial system a plan to markets that are always going up but they don't really have a plan for when that plan goes wrong remember never confuse brains with a bull market. all right we're going to take a break and when we come back much more common and i think you know way. in this presidential election cycle both democrats and republicans claim to be tough on china but does that actually meet what does the american public really know about the china of the day on this edition of the program the attempt to separate this.

again blown listen we or 2 or 3. probably have a. chance to be acceptable people to ration before they were rolled out you know you know society because. there is a real risk undermining faith in the fractionation system as a whole and i think governments are under such pressure to introduce a bank she practically good. because of the willingness to consult and to ensure acceptability somehow to new growth.

back to the kaiser report imax guys are time now to go to david the want of a bit wiser and best friends david welcome hello max it's a pleasure to be here big fan of the show well where a big fan of yours may fall you on various social media got some great things are writing about you write that metallic money did not survive the age of globalization and nation states because it did not scale well so lab rate on the set of scalability how does that relate if it all to what we're saying at the moment in the global fear out currency grid david's that's an awesome question and a pretty broad topic i'll try to get this custis in brief but i think it's always one thing i always like to think about why the gold standard failed and i actually how the gold standard say ok because i think sometimes we like to think that after 97 we 71 with 11 and c s currency world and that before that it was just

the gold standard but i taste at the realities that were a number of different gold standards that were implemented over the years and some are just as the add as currency but usually when those sound money and it was the asked salt about the gold standard they usually refer to this state called the classical gold standard which was basically oration a dead end mids lee $1800.00 and that's basically lasted until world war one after that it has been only downhill for gold we went to a gold exchange standard it at least in my view 1971 was just a natural consequence. of that whole process but i take the point i was trying to make. that taxed is that gold has these amazing

monetary corrector a stakes that we are all aware os what's regards to fungibility divisibility and scarcity but one thing that gold severely lacks is the ability to transfer and i believe that had this started to become an issue over time especially as commerce the came more and more globalized so then we started to see people he said i'll say exchanging. gold bullion they started to use gold receipts and from then on. the shia takeover off the system was was a lot easier to do so i think that was a very very short and reason why the gold standard failed and this is exactly where i think one of the points 10 x. prove mints are right we all know that basic point is extremely easy to transfer if

you can transfer it over to enter nat without introducing any 3rd party risk in order for us to do that we with node we have to introduce a lot else congress party rest that over time leads to centralisation off the monetary base so you have a lot of gold stored in and say no place which and that's why it doesn't have to be best way and i believe this is why not the big big big losses that the white house over go simply put gold is really having and as a result you have to store it in places and that tends toward centralization is what you just said and when you have a big store of gold centralised then you need people to protect it and i've got a military on hand to protect her golden now in the military. not only have you got a family currency that's probably

a fraction of the gold circulating and that causes problems when i've got a bunch of soldiers with guns hanging around and the days off you know they're out there are doing stuff that they shouldn't do and anyway you get to pick coin when it's essentially solve this problem you save got a 10 x. advantage over a gold to 10 x. advantage that's a big advantage david tell us more well i think i was there for a basically 2 it is at least an order of magnitude better rate i do think sad bitter and don't get me wrong i love go actually i say go does great i just they thout big winners better. and in a number off way and in some ways that point as mentally better than those but i do think that on this transports ability requirements are on the stress or ability aspect i do think that we're talking about orders of magnitude off you prove meant

as as you just said how you can transfer between extreme easily while i go there is the smoky it has all these problems that you have mentioned i take away when we look at history the golds didn't die suddenly rake goes the gold monetary base is starting to become more and more concentrated over time like from gold coins to gold and then to go to bars and gold bars soared in central banks this whole process off monetary centralisation is walk makes gold relatively fragile to a takeover orts to be caught by governments in the future and i think basically has see an order of magnitude at least advantage on that side while the last terrorist acts in hall meeting form a bank of england had mark carney. one u.s. dollar no longer fit to function as a global unit of account do you agree and are we about to see

a bretton woods to point out what does a post dollar monetary and trade system look like david wow that's that's a big question i think my heel on that i not i thank to be maybe a bit simpler on that side i think for now i don't know what's going to happen i do think that the dollar will be the leading currency in the world for a long time but one thing is for sure in my view we're shifting from a unit of polar to a low tipler currency system right so right now as it probably doesn't make a lot of sense and china advice and energy from russia they have to do this transaction on u.s. dollars and ultimately settled as at the federal reserve off new york of course both parties are not interested in doing that so they have been doing their transactions and not their currencies and actually get they

a large part of off that. sort of transactions are or are not happening to us all as a new war so i definitely believe that there is this change from like having only the dollar to having most of hope will settlement naturally exclude one way when i my bet is is of course on but point over time but just simply the fact that we are starting to see nice competing platforms i thanks nat enough for people to start paying attention this is the sort of stuff that breaks very stout least relationships are usually tend to have in our mind strike i thought i believe these are big events that we were vertebrates were in for many many years if not decades so i'm not i'm not very. or what the end game is done to be that things are changing on that strong safe and yeah we can all see

that it is and thankfully cations will be major for sure i think that point is a great some tender i think gold is a good tender by saying we're probably going to see a number of different alternatives that have the us dollar there's the chinese currency we're going to have maybe some of the central bank there's i don't care and see so it's going to be interesting to see how this will play out right now at this year's virtual jackson hall jay powell fed chairman said he is quote willing to tolerate more inflation you know this is a statement best in our rife with where there's a lot of ways but what do you think it's definitely a historic. speech or a good and we're actually a bit wiser right about that right now i think there's a number of things that we need to keep in mind 1st i think that's extremely dangerous i don't think that history will judge this decision as

a wise one. but what's the relationship between a few things so for example the relationship between the federal reserve balance sheet side and inflation to say it is a lot less transparent than it used to be i remember you guys mentioned this in a previous show but a lot of these when we say that the threat fed prints money they're actually preaching bank reserves that banks might or might not lend rake and that could or could not be inflationary from a price inflation perspective in the short run that there were some important differences in the on the operating framework that the federal reserve operates on after the global financial crisis so that this relationship is becoming weaker and weaker but having that's sad. i think does that mean that all those sad little man marries and the microcosm he wants and does that mean that they have solved the

business cycle that they are going to be able to tame the business cycle i think the answer is a clear no and who i am not very sure when we're going to see the consequences these actions by i'm pretty sure that this is not the end well many oxley's. many of these measures they have been taken in the past the difference right now is they're mad right and these things never end well as we now see i think that's why having at least one flood and. that is outside this whole financial system. or best point or so for a combination of these assets today's making more and more sense right now i have to set something and i want to focus on it here because i think the audience probably their parents. picked up and they would appreciate

a deeper dive into the us you said that they the central bank prints bank reserves and that the bank may or may not lend those reserves this is an interesting point it's a subtle point and i think the audience might been. helpful to dig into that a little bit david in the time we have remaining so i think so in this i want to say to the sad print money what they usually do as they kind of withdraw chakra bond themselves these accounts that banks have with the chatter reserves this is what we call the bank reserves or the fed funds. was so well so the sad can like for example by the. treasury from a bank and in exchange they will credit these reserves for a back and these reserves the banks can use to do fractional reserve banking and land to the economy. one thing that has changed significantly

this mike look like it's acme 1000 people actually i think it's a very very important point is that. in the past the banks usually didn't have a lot of these access reserves or at the federal reserve basically because they didn't pay any interest they paid 0 interest one thing that has changed after the global financial crisis is that in order for the sads to be able to do a limited amount of t. re they they they started paying interest on these research so actually if we look at if we plotted chart also how these access reserves that are are the sad are looking like a looming and and they're growing a lot and that's basically one of the big reasons why this money is not slowing the economy and why we're not seeing a lot of price inflation frank david perfect route of time but thanks so much for

being on kaiser report. thank you matt thanks stacy well that's going to do it for this edition of kaiser report with me max kaiser stacy arbor want to thank our guest david lavonne of bit why if you want to get in touch with us do so until next time by al. problem drugs don't always come from unscrupulous dealers but from pharmacies to in every state in the united states we see the very sharp increase in the number of people seeking treatment for addiction to prescription opioids it invaded america under the banner of medicine persisted with the pain but instead of trying to wean him off though she just goes after dose after dose after dose and really became his

drug dealer who's to blame patients doctors manufacturers the government. can be used as a workable is the more fleecing of the. major issues of the. songs . as a name for. those . to use the book with the discussion of those with he was a visible. but. of course. german

lawmakers clash so to the country's response to be allowed to poison a position activist alex you know follow me but some pointing the finger at moscow had a fiery debate in the foot of the stock. why does not only need such a level of protection most security services political motive is part of the putin system why would the russian government be so stupid that even left no money flying out to germany instead of hiding him in russia. for all its recalled almost 10000 coronavirus cases in a single day the highest figure so far testing some to struggle to cope with him on . microsoft accuses russia china and iran of trying to madeline.