you are today right ahead. i am max keiser this is the kaiser report 1st of all i got it shout out congratulations to my friend ronnie o'sullivan who have won 6 times now the world snooker championship up there at the crucible all in sheffield that's in england ronnie is the mozart of stoker and as you can tell by american

accent i have no idea how to pronounce snooker but it doesn't change the fact that ronnie is the greatest of all time in that sport that i cannot pronounce congratulations ronnie and i hope to have you back and prize a report soon don't be a stranger ok now let's talk with stacey. i think it's something along the lines a snoop snoop at. something like that anyway you know what max was a champion in predicting this sort of headlines then druckenmiller speaking of london i guess they used to run the quantum fund out of their. the in george soros yeah i'm not sure where they dumb a style probably somewhere waiting. for certainly they did crash the pound and that is this guy's then druckenmiller he was on one of the financial news shows

here in the united states and he predicts inflation and deflation out of the ordinary huge numbers he sees inflation will hit 5 to 10 percent over the next 4 to 5 years and he said that feast on what he heard at virtual jackson hole that the fed is encouraging the government to print more money more stimulus so fiscal stimulus and that's like m m t he said and this is going to cause inflation on the other side he said they're all their asset price bubbles that the fed is stoking is going to cause collapse which will cause a 3 to 5 percent deflation on the other side so both tails he calls it right well i mean this is because it plays into been talking about this for a while for a couple of things 1st of all definitions for the words inflation and deflation this is that the fact that he can say both are happening at the same time or could

happen the same time you have to ask yourself what's the what's the use of even using words like inflation or deflation because a stock doesn't describe the what's going on with the economy we've outgrown those words if the economy is moved beyond those definitions we're in a different type of economy and market completely you know i've called it things like buy flay ssion we've talked about that last year where you have both inflation and deflation we talked about having financial window she. here are the forces of inflation and deflation are butting up against each other and then the the average person is kind of caught middle like you would be caught in a storm a boat in this kind of storm and it's being ripped apart and you're spinning we called it a bermuda triangle of finance where you're flying over the economy and all the gauges are going in opposite directions and there's an inflation of that deflation the my upside down we call it the poseidon adventure of the economy where steve mcqueen is and his band the people escaping the ship are going in the wrong direction because they don't realize upside down we've been this is been

a common theme so stanley drug and miller is that stating what we've been saying now for a number of years that it looks like both but it can't be both it has to be something different and what it is as we've been saying is that it's neo feudalism it's the fed is printing all this money as he points out but it's not inflating the economy because it's being used to take the economy private in a huge leveraged buyout like if michael milken were running the world this is what he would do it's neo feudalism stanley that's that's what i call it by what it really is yeah and it's that command and control in order to maintain that status quo of the neo feudalism whatever you want to call it the interference in the markets which are reflecting just merely nature and including in it time and energy and those are the 2 most important ingredients to measuring you know our economy and time went negative with negative interest rates energy prices went negative in

the past year so it makes sense that you would have that swirling compass telling you are you up or down you don't know anymore because at a certain point you lose track and you could kind of see this in this next chart actually jeffrey gundlach says this could be the charts of the year and what you see is this crisis increased disposable income the bottom line there is despite. civil income. excluding government transfers so social security welfare unemployment benefits anything like that including you see it is a huge surge going back decades this is like a huge surge in u.s. income and totally because of u.s. government transfers so this is the thing that stanley druckenmiller says is going to cause the inflation but it's also extraordinary that you're seeing you know we have gone through the looking glass that started in 2008 that we really had that

a lot of the income. of the ordinary american 18.8 percent in 2008 came from the government and that's when baby boomers turn $62.00 now you have that plus the pen demick plus all this collapse plus the financial collapse plus the negative interest rates and negative energy prices and we have 24 percent of income in america is from the government so we're reaching a some sort of tipping point you know the event horizon is being passed it disposable income is being flooded into the system that's the money printing. and going to lax saying that while druckenmiller saying there is an inflation risk or it's causing prices to go up. simultaneously though you are living on a ship that is sinking due to the implosion of the velocity of money and

therefore the collapse of the bond market and we know that the bond market has collapsed because the only way that america can sell sovereign bonds or government is to buy them back from itself if america wasn't buying back its own debt then no no would be no bid there would be nobody buying the debt and like in 1971 the american government would have to declare bankruptcy or insolvency which is what nixon did when he caused the gold window so net net you have. an economy that would be similar to what you might find at a funeral home it's a cadaver that's being drained of all his life fluids but people are mistaken the formaldehyde of money as a reanimation of the corpse and that we should then put this corpse up on its own 2

feet and ask it to walk out of the funeral parlor which is asking too much of a corpse this american economy diving 2008 there's been a lot of formaldehyde pumped in through the system but it's still dead it's dead today as it wasn't 2008 and these professional money managers obviously by their statements are utterly lost in the woods i have no idea what they're saying i have no idea what they should be doing well part of the situation we find ourselves in of the topsyturvy them where we can't tell up from down is that we do have a bifurcated economy where of neil feudalism right and because we have the u.s. dollar we can print it we don't need the bottom 99 percent so the top one percent in which stanley druckenmiller lives they get. the fed money that's the credit that is printed remember it's credit is not money only the u.s. treasury can create money they can issue bonds and they can print currency so the

ordinary 99.9 percent of americans live and that other economy where they have to rely on the treasury you know to and the government for tax policy business policy fiscal policy all of that stuff that would create in a real economy and obviously you know sense since nixon but especially under bill clinton we shift all of our economy to china right and and the top 1 point one percent have been able to live off all this credit so they get free credit for which they can buy up all the assets of the world and have an income stream based on that based on the real goods and services produced by the rest of the world and you know part of the military industrial complex and the intellectual property complex they get to get that stream based on all the credit created whereas the real ordinary person lives and that that all their economy and you're seeing like

you know that huge rise in income. is now hitting them because of this corona virus and that that's also going to cause turmoil we don't know how it's going to play out but it could play out in this election because people have savings for the 1st time go online read it you could see people talking about having savings for the 1st time in their lives because of all this stimulus money that's being sent to them the enhanced unemployment benefits so you know there is something going on something snapping we won't know until it actually happens and we can look back and hindsight but it's something interesting or that's an interesting point to make this possible income is going up but it doesn't mean that income is being disposed of. that if people are saving it they're not actually spending it we have main that's why the money velocity is down also is because yet disposable income if you are described as disposable income is up but people are saving it they're not disposing of it so you don't see people people don't believe that the secada me is

coming back so they're saving now this is also called the paradox of thrift and it's of reviled by the keynesians in the money and the debtors out there who believe that you need to spend spend spend or the economy collapses but you know that is only true if you have a sound monetary policy and we don't if interest rates are 0 as you point out then the michael milken the kitchen of the economy is in full swing that is taking it private the mergers and acquisitions will continue until the meetings stop or the the beatings the mergers and acquisitions will continue until morale improves animal spirits improve right until animal spirits come back and if they never come back and we find ourselves with oh my god only 5 people own mind the 9.8 percent of the economy how did that happen well you know if you watch the show for the last 10 years you would know how it happened yeah and fact when he said that people are saving americans are saving all this cash in this huge savings rate it's like

chinese level savings race and why did the chinese save some. well because there is no sort of they have a really nice feudal system where this a concentration of wealth is vast so they want to save it in order to be anti-fragile of course because health care costs things like that might wipe out their family's wealth so they have to save a lot because of the precarious precariousness of the whole situation so of course like your experience over the last few decades where you haven't had savings for for decades because you have to work or work and work 2 or 3 jobs member as george bush has said like uniquely american well of course like you want to you're still you have post-traumatic stress disorder from that from these stressful years and you finally could say ok here it is i've got some savings right the depression generation were great savers yes yes my mom would you know say for pennies on her nickels and put them in depend wrappers and take them to the bank and get cash

around every few months right there in that was something she learned as a child of the depression these young millennial and generations e or child are children of you know the debt apocalypse you might call it that this is what stand talking miller had talked about in terms of the deflation he's expecting he's expecting and asset prices of the fed controlled economy not the treasury you know control the economy the people that have to live within the treasury and some their checks to the treasury for their taxes and stuff like that are received income from the treasury so this is these are 2 different economies and they're about to collide this could be like a neutron star colliding very soon they weren't happens when new tron stars explode it gives us gold yes we're going back to gold we're going to take a break after this to try on star explosion and a meteor or hits and when we come back we will be here at all it'll be complete obliteration don't go away.

a new gold rush is underway in ghana thousands of ill equipped will goes off flocking to the gold fields hoping to strike it rich is the book. that. children o'toole in between gold. was very poor i thought i was doing my best to get back to school which side will have the strongest appeal. was a pandemic no certainly no borders and is blind to nationalities. as america we caught up with the we don't have the facts in the whole world needs to be. judged. commentary crisis

with this system things. we can do better we should be. everyone is contributing each other own way but we also know that this crisis not go on forever the challenges create the response has been so many good people are helping us. it makes us feel very proud that we are in it together. welcome back to the kaiser report i'm max keyser time now to go to the to the oracle of secaucus the scene here of bayonne they want to only michael pentel of pent up port dot com michael welcome back. good to be with you tremendous to see

you. oh is a good time with michael pent all right let's you know usually we talk kind of macro stuff and i wanted to dig into some what's happening in your industry folks that are doing what you do and trying to make money in these markets and start with warren buffett you know he's dumped all of his airline stock recently most of his bank shares he went long barrick gold that's quite an interesting move there and japanese conglomerates shorting america the thing that he said he would never do michel this is a traditional emblematic person who says you know just buy and hold america and now he's buying gold so i guess you can teach an old dog new tricks he no longer believes in the sanctity and the purchasing power of the u.s. dollar so he selling dollars by interest metals i love the movie i think is very wise and he's welcome aboard my team he has to be nimble that's one thing you need

to be in this industry is them ball you know you don't make money by sticking on to a sinking ship now a stamp druckenmiller another famous money manager worked with george soros for a long time more of the best in the business he he made entering statement he thinks that inflation could easily hit between 5 and 10 percent because according to him we've got this to fact or modern monetary theory going on at the same time he thinks you could see deflation in terms of asset bubble bursts right so this is like 2 conflicting forces in the economy. all at one time it sounds i guess vaguely like stagflation vote what do you make of that michael i mean i like mr druckenmiller been easier is a little bit conflicted there there are 2 different investment strategies i have a 20 point model over the inflation deflation and the economic cycle model and makes a heck of a big difference if you want to be hedged against stagflation or inflation or

hyperinflation where if you want to protect against just inflation and deflation so he better make up his his mind. classing it collapsing hasn't prices would be very deflationary and you need totally different strategy than for one that's you know as i said a 2nd derivative increase in inflation i am heads right now towards just inflation and deflation and recession. i was hedged for a stack lation from march to say august and i've changed wait until late august i change the earlier strategy because we have a massive fiscal and monetary cliff that we're going over and for those that believe like mr powell that you could just say i believe that we should bail have a chilling to hear percent inflation target instead of a jew percent target that we just can't reach as we measure it based on the coup or you see deflate. you know doesn't mean you can reach it. as

a cent we had a $3.00 trillion dollar deficit in fiscal 2020 that was borrowed money that was printed by the federal reserve and now this balance sheet that went from. 800000000000 in 2007 to 7 trillion in 2020. it increased by 3 trillion dollars in a matter of a few months the balance sheet max is now shrinking if you look at the past bomb the balance sheet has shrunk by $100000000000.00 that's a big difference that increasing at the rate of about $500000000000.00 a month that's a huge transient gap in the exhilaration of the monetary base and when you say that the fact that there's no more helicopter money no $1000.00 checks going out of mr bernanke is helicopter as they're often the 1st time in this country universal

basically this is what caused the stagflation in the middle of this year but now again like i said even bear mr druckenmiller just inflation deflation and recession intil the monkeys in d.c. decide to. i think courage to borrow trillions of dollars more bankrupt the nation even further and have the courage mr powell to print it all you know this modern monetary theory or universal basic and then the side in it sounds like this election coming up and it sounds like it's an election about whether america wants to be a socialist or not is that a fair characterization what's fiscal and monetary policy has ever been in place that has ever been any country not only i see any country in the world that has been able to be successful and remove i mean just didn't deserve a policy for decades and they're still there and you read your is at 0 interest

rate policies and in to me we got off our observer policy for maybe a man a nanosecond and then we're already panicking and cutting rates in 2100 muster for anyone ever heard of the one virus they cut rates 3 times in 2100 remember that we were backed into q.e. when the report market. so barely started we jumped the shark we entered into the threshold in the new era of u b r and modern monetary theory where we just say you know what you stay home and we'll send you a check to do anything and if the democrats get in. trouble harris who is on the democratic ticket as the vice president as espoused oh munder in $20000.00 per. judy every family virtually every family that's not or a quote rich ok so yes that's how you get that is how mr howell is going

to finally achieve is core p.c. if you were to have presented place in for many many years or at least as many years as it was below 2 percent and that is there the holy union between fiscal and monetary policy where you get money not just sent to wall street so they can gamble away you know so the robber traders can also join and you send money to j.p. morgan and you send money to run to the traders through their $1000.00 checks that arrive in the mail and that's how you get paper stagflation and that's probably where we're headed if that's where v.c. wants to be in across the world and china may have got some tensions rising. looks like they're going to reduce some of their u.s. bond holdings does it doesn't matter that china starts dumping bonds more u.s. bonds more aggressively i mean can't the fed just print more money and buy them why is that a big event there michael well i think it's a big event for the u.s. dollars has your money and it's world's reserve currency status by more than $7.00

u.s. dollars didn't lose that status i don't think is going to crash against the renminbi or the yen or the euro but he could lose a lot of its purchasing power even against other floyds the i currencies but i think china made decisions that i mean couldn't outrun just rain 80 and default on back we're going to treasuries that's owed to china that's a big risk for china also the chinese are not really getting a huge interest rate on a 10 year note you know the 10 year treasury is yielding 0.6 percent. and it could be a very to 0 like the rest of the developed world maybe sure this is gee why am i going to invest my trade surplus in a bond that pays me nothing in the principal can be defaulted on. i decree from the president so maybe i'll do the smart thing and put my currency surplus in things that really mean something white precious metals i got to ask you this question

you're a keen observer of markets and global finance this story about tech stock is fascinating so chinese has a company called tick-tock social media company and dot com mandates as emperor of the world that the china must sell america tick-tock where this come from is this unprecedented in your lifetime or what's going on here michael well i mean i'm certainly not an expert in tech talk but i can say this we have a president who again i'm a political i didn't vote for the man but he seems to be not only him but him and the federal reserve seems to be stretching the boundaries and limitations of what government is supposed to do so you're not supposed to tell companies a few will oversee his you're going to pay huge tax if you develop your products overseas a very important back here in the united states you use tax that doesn't really sound like capitalism to me although you know he's trying to fix the trade deficit by the way we did the biggest trade deficit this country united states has the

biggest trade deficit is ever had in the last 12 years. in the last most traders it was largest remember that so. for all the bluster about trying to balance our trade deficit with reza wrote it just hasn't not work but you know you want to say china spies on us like not a big admirer of big government of china maybe they do i'm sure sure that's the case and turn and trump by decree can say guess what you're selling that company or your band from this new age so nothing surprises me anymore by the way just in time the internet will bow i think if they did the federal reserve was not allowed to buy junk bonds i should think that would be ridiculous but guess what jury in your emergency we have learned one thing jury room and emergency our government in our stead change you. forget about the constitution yeah i mean a center just driving on their driving a semi tractor through every legal barrier on the books that i mean i've seen the

wall street for 40 years and ignore the law but this is getting pretty absurd so let's mean you're got a hot hand over there pent up pork dot com again this year looks like we're going to have another big year over there in india you've got your 20 point model to guide you through these turbulent markets and you you know if you make a mistake it shows up the next day so you've got to be on your toes a way like talking to you. let's talk portfolio management for a 2nd barack all done the gold miners in general they seem awfully cheap compared to the price of gold michael are they dirt cheap or am i crazy well you might be crazy and they could be deferred cheap you know they're not mutually exclusive. but yeah you got to buy gold to my portfolio consists of 3 things right now utilities precious metals and assurance those are 3 things that might work for

you and that is the case has been the case for the last 2 weeks about about the last 2 weeks. because this is we're going over this message just live i still hear people talking about the don't you know the state has your back well the thing with 0 this is race but look at the 2nd derivative change in the monetary base and will so hurt there's plenty of fiscal so we're from the economy no there isn't all those drama to traders that used their $1000.00 checks. but all options on just one big bird and there's no further checks coming so wall street has a huge fiscal and monetary cliff a reality check not to mention the election chaos coming november 3rd eye is exciting i want to carry this hour to a 2nd segment if that's ok with you thanks for being on kaiser report michael wonderful all right when i'm going to do it for this edition of the kaiser report with me mike's kaiser and i want to thank our guest pressure michael pentode pent up for tat calm and stay tuned for

a lot more coming your way my all. in the list but it was opposed to some of this of a. lot so you know it just before. last time we chased. each one of them carrying 20 kilos 'd of drugs. forced

a fence down. they just step boy. it's a. 3 will remain there. they they have this is the this is for me. i. mean. i don't know maybe they don't make or. break right. now well i'm right. i'm proud i'm right. will justice be done in a london court not only is joining us on trial but so is freedom of speech and profession of journalism what explains this farce media trial why haven't more journalists been is the sun is being used as far as you need same with those channels as the beat.

of. the european union describes the poisoning all russian opposition figurehead election of ali. the nation 10 calls for evidence they put forward claiming the incident simply a pretext for site. opposition leaders and independent journalists in russia are not safe it is time to stop putin this impunity if there was none of on the they would have come up with another reason to impose additional sanctions also where the ears foreign minister talks all penalties against the bella russian president over the recent disputed election the low seems confused about which country alexander lukashenko is actually the leader all. good.