i thought i was doing my best to get back to. the strongest appeal. yellow vest on t. government to activists recruit in paris for the phos time since the knocked out leading to a brutal standoff with police on hundreds of arrests all correspondent was the. story to get a look at but not close to over here gas as people are not trying to move away from . russia accuses ukraine of disregarding free speech after it all stopped going to remove russian media content from the country's top story. on britain for pads to limit gatherings of more than 6 people in corona virus cases as

the w.h.o. tells all t.v. the fog the spikes are inevitable. well. that's all from me for today kevin i would we'll be here at the top of the hour with the very latest in global politics so join him on next turn on t.v. the kaiser report enjoy. hi there this is the kaiser report i'm max kaiser lots going on social media investing types stacey oh yeah of course. that's a fortnight king of the day traders on social media and he is asking hey even mosque do something of course this harkens back to the 2008 financial crisis 20082009

when jim cramer on the media of that day which was the financial news cable news freight 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 have 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 to 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 other than 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 a peak the mean as. well hero he was like the day of kramer for the jimmy market at the jim cramer you know those green are and you know i mean i mean this is jim cramer had a plastic camera 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 cramer and he 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 day for going to somebody is in the wings will 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 i think so they don't 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 particularly the options traders the now

they've lost billions of dollars they're trying to discourage people from to say you 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 you 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 machine 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 an 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 a suggesting that this could be them preparing for war as well but copper is a strategic battle and all those 3 things could be in play. 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 of what the exception of oil but that is 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 into 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 or the dollar there's where 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 arguments 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's finished leftovers to heed she's

a food waste call it kind of feels like it should be a good analogy for what's going on in the stock market some 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 fortnight i will go to jim cramer and not not to jim cramer but to jay powell plead with a palace eat his unused lunch on eating lunch right now he 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 different i thought on that learning curve you know he hasn't reached 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 to 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 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 launch 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 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 the way to do it is you've got to classify tesla as a strategically important institution for the american economy that's like all the banks got under that category yes a mosque a good bench a pile that 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 he may have access to the media and he said go on joe rogan you need to go on day 40 show so therefore he would have to classify tesla as a strategic underlying and valuable asset to get the bail out 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 if he's buying also he's been pumping

for all sorts of thoughts 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 bell outs are coming i think we're going to see the equivalent of this this is my last point here with this mean and this analogy that we're going to have these principles eating your used lunch and order to that that's what the fiscal stimulus is 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.

i. suppose. last time we chased. each one of them carrying 20 kilos 'd of drugs. first offense. blues that. is the very we have maintained the money. they have this is the this is for me. me. i don't know maybe don't. make or.

break. for. now or. the world is driven by a dream shaped by one person. thinks . we dare to ask.

back to the kaiser report i max keiser 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 big fan of yours me follow you on various social media got some great things you're writing about you write that metallic money did not survive the age of globalization and nation states because it did not say well so lab rate on the sets of scale ability 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 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. a natural consequence. of that whole process but i take the point i was trying to make. that tax is that gold has the amazingly

monetary correct or a stakes that we are all aware os what's regards to fungibility divisibility and scarcity but one thing that gold severely lacks 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 exchange. 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 they 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 does it have to be this way and i believe this is why not the big big big losses that the twin has 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 race i do think that 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 transport's ability requirements are on this trust 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 but point extremely easily while i go is the smoky it has all these problems that you have mentioned i take away when you look at history the golds didn't die suddenly right to go to the gold monetary base it started to become more and more concentrated over time like from gold coins to gold and then to go to bars and then gold bars soared in central banks this whole process off monetary centralization is walk makes gold relatively fragile to a takeover warts to be caught by governments in the future and i think basically has see nor hear us magnitude at least and benefits on that side while i last year's tax and hall meeting former 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 $2.00 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 psych 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 polar to a low tipler currency system break 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 hers and you know more so i definitely believe that there is this change from like having only the dollar to having most of the whole global settlement match or exclude one way when my bet is is off worse 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 kind of breaks very sound 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 shy . you alter what you and gain is done to be that things are changing on that strong

safe and yeah we can all see that it is and will be major for sure i think that point is a great some tender i think gold is a good one tender 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 is it all currencies so it's going to be an interest see 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 that says her you know 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 but but 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 that 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 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 i and i.i. i'm not very sure when we're going to see the consequences these actions but 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 point or so who are a combination of these assets today's making more and more sense right now he just said 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 and if i want to say that the sad prints money what they usually do as they kind of withdraw chakra bomb 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 looked like a technicality but 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 started paying interest on these research so actually if we look at if we plotted chart how these accessories serves that are are the sad are looking like you're 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 max thank stacie 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 look. a bit why if you want to get in touch with us do so until next time. you just have to fly between 2 kinds of those fast as you can. the producer push for the. first time the other.

stories important. rushes in racing is competition in the extreme to have a full lose the specified route between the lines with the fastest time. there. so what we've got to do is identify the threats that we have it's crazy confrontation let it be an arms race. spearing dramatic to follow only. i don't see how that strategy will be successful very. time to sit down and talk.