people should have a good evening because i'm sure the theory would be michael moore. chapter i.x. kaiser. this is the kaiser report so much to talk about high stacy. wow . you're really excited. right, well we have a load of stuff. this is an interesting story that basically we've been prepping for, for the past 10 years here in price report. and that is, is big queen replacing gold futures and fund flows are saying yes, rising futures open interest and investor flows and decline versus the same. declining for gold indicate the cryptocurrency, gaining an edge for price appreciation and our view, that's mike mcglone,

e o. 1 of bloom borer this is really amazing. so what's happening is that the value that goal possesses as a store of value is being diminished by bitcoin because bitcoin is a superior store of value in many, many, many ways as we've mentioned over the years. and so therefore, gold would be training more for its value as jewelry ornamentation or maybe some electronic is which would imply there are just a gold price of maybe 2 to 3 $100.00 an ounce, not 18 or $1900.00 an ounce. and gold is the new aluminum. wow. that's like robert prechter style prediction, price prediction there that he's been predicting for the last, like 30 years. well, i mean, if you look at so versus over has no longer been useful as a monetary metal. and the price has been lackluster to say the least. gold is becoming very least the new silver, while bitcoin becomes the new gold,

it's really difficult to discern what is just for the store of value price movement . and what is all the money printing going on? because there is a lot of money printing going on. i see that stephanie calton was recently tweeting that she was speaking with gary cohn, who is, you know, an insider, former goldman sachs guy who's, you know, becomes part of governments, especially democratic governments. and he says like they're ready to print 2 trillion immediately upon biden taken office, and then another 3 chill in the 1st year. they're also talking about a trillion and debt forgiveness for students who, you know, the stock markets also finally hit 30000. this was something that was predicted back in the late 1990 s. that it would get to 36000. right. and that was a famously bad call because it crashed down to very far down after that. well, the metrics that the government used for inflation are very skewed. so in other words, the stock market is reflecting inflation and the u.s.

dollar is experiencing a hyper inflationary collapse against big coins. and what these financial engineers have done like harry cohn and the others on wall street and around the world is they have financially engineer the world so that when they print the money, it doesn't go down the path toward wage growth. all those paths are cut off using financial engineering pretty much the wages don't go up and then they look at that and they say, look, there's no inflation, we better print more and then the wages don't go up anyway. those, those people are still in poverty stricken, but oh, the asset prices of stocks, they keep on going up. we don't know why that is. it seems like an anomaly, but we just made another few. even one must is now the 2nd richest man in the world . how did that happen? oh, well, also on top of this, we're seeing that janet yellen is being floated as a possible secretary of the treasury under biden. so course she was at the fed. so if there is a merger of the fed and the treasury, which many are suggesting,

especially on the left, over the past few years that, you know, basically m.m.t. should happen and it should come from the treasury for the people. and there is this a central bank digital currency notion of having additional dollar. and that would be basically a merger of the fed and the treasury. so you could be seeing something like this in the next year or 2, but it's still early for big queen. this is psychedelic barto. priced in gold is 10 ounces versus gold market cap. 2.88 percent between islam right very fast. and gold has also been sinking. so it's already changed for it's over 3 percent. now it's like every day, every hour, actually you have to update this, but you know,, it's getting closer. one, once it gets 100 percent of the market, capital b., you know, maybe gold will fall from 9 trillion to say 5 trillion and then bitcoin will rise to about 5 trillion. right? when we've been saying those 2011, initially our price target for big oil even back when it was a dollar,

we said based on the global 4 x. market in the gold market, we could see big going go 200000 dollars. 6 months ago, i said ok, it looks like because it is going to challenge gold. therefore we got to raise our price target to $400000.00. but you're right, you have to also look at the price of gold here because the gold price could get cut in half because people are literally throwing it in the street like garbage like a venezuelan ball of are in there buying because instead of course that could be the ultimate indicator to go along and get bullish. then when everybody hates it, when there's blood in the streets, it could be a good time to buy. you know, it's like i'm going to be buying gold. the 2nd, peter schiff, capitulation started right. and all of the, all points of course, were also booming. so as retail looks on, big queen as all the huge billionaire and you know, the institutional class like blackrock and j.p. morgan with their trillions under management. look at that point and are able, you know, 18020000 is nothing to them, right?

but a lot of ordinary people have that price price by us, and they're going to get wrecked. but it's a lesson, don't go in there like barnacles on a whale, and they're along for the ride. and then sometimes the whale scrapes up against a pier or a boat. all the barnacles get scraped off and wrecked. but the whale keeps going. well, that's one way to look at it and of course, getting wrecked as they call it in the crypto market is a good way to learn. it's a good lesson. and we have many good lessons in this episode because we have professor safe, you know, most in the 2nd half. and so you have is dropping knowledge on you, the audience in the 2nd half about that. but, you know, in america, this is part of that racket. the inflation racket, the neo liberal racquets, all the rackets going on that we always quote basti out, frederick basti out and how plunder becomes a way of life at the, for the men at the top of the society. and it trickles down and it becomes codified into law. well, you know, since 2009 is when the u.s.

federal government stepped in and basically under all student loans. so we're going to look at some of the consequences that because by, in the saying he's going to forgive a chilean dollars through executive order. but here's the actual data taxpayers face $435000000000.00 in student loan losses already baked in, leaked education department study shows. in 2009, the u.s. government entered the business of reckless no matter what. lending to students even to older students with subprime credit ratings and to students at iffi for profit colleges with dubious degree programs and then tuitions soared and student housing went upscale and became a global asset class with its own commercial mortgage backed securities. c m. p. s . that are now experiencing record delinquency rates and apple and textbook publishers with everyone began feeding at the big trough with students just being the conduit for this money. student loan balances on the government's financial

statement skyrocketed from $147000000000.00 in 2009 to $1.00 trillion at the beginning of 2020, despite the 11 percent decline in student enrollment since 2011 in chart form. this is what that looks like. hope and change arrives and boom, those are the government debts that the taxpayer is underwriting. but they're saying that because you only have to pay a certain percentage of your student loan back and then you get it for 10, 20 or 30 year policy, essentially repayment. and at the end of that $1020.00 or 30 years, you don't have to pay any principal left after that. you know, if you've been paying 10 percent of your salary after tax salary. so $435000000000.00, this new study that was leaked from the education department for into the $35000000000.00 is already not ever going to be paid back. and this is only the beginning of the program. well, for tourist pointing out that it only started in 2009 and already $4.35 of it will

never be paid back for. this is the problem of money is that it encourages malinvestment and the destruction of your economy and your society. you know, look at, look at what happened in the subprime market. money printers were out of control. it was the biggest disenfranchisement of black america since slave days. look what happened to the medical industry, the health industry in america, money and private equity run amok. america went from being one of the top one or 2 best health care systems in the world to barely making it into the top 30. right? that's often money. predatory financier's. ok. here we have the student market. here's a population of students, the young of america. you know, there's an old saying america eats young, and this is a perfect example of that. let's just cannibalize this whole 2 or 3 generations by loading them up with debts for wall street's profit. and then when they can't pay, it will throw money at the bus. it's disgusting,

it's deplorable. it's very clinton esque, if you, if you want to ask may and it looks like we're going back to those days, but bizarrely also in these u.s. elections and 2020 in 2016. the big, big, big, massive dividing line has been between those with a university education and those without. so those, with out a university education went for trump. those with a university education went for the democrat. these are the people with the university education and all the debts that they're you know, they claim that the other side are deplorable. is that the and yet they're the ones that are questing all of their bad debts on to the deplorable is on to the rest of the population. and it is a system of plunder. whereby if you're having a standard, as you know, our guest in the 2nd half safety analyst talks about, it does lead to plunder. and this becomes the mindset of how to play the system. if

the government here is printing free money into the system of a certain class of people that get to be the elite, it's the ones that can get access to this free money from the government and pretend they're going to pay it back. i mean, this is the whole system, right? bankers. you think all those quadrillions and derivatives are ever going to be paid back. do you think any of the quadrillions and debts are ever going to be paid back? it's all a game right. there is a wink wink like for the insiders like we're not really going to pay this back, but we get to live at large like this. so people say there's no downside to m.m.t. and money printing. go back to this, for example, like a disenfranchisement of black america, 2008. now we have record high black incarceration, the disenfranchisement of those who were entitled to adequate medical care. now we have record medical related bankruptcies and homelessness. and now we have a student class that will see incredible rise in opiate addiction. those are all engineers by the money printers for one simple reason galligan profits from the,

from the society. but seriously like the students, they are flying. they got $1.00 trillion dollars of free money from the taxpayer, from the deplorable that work in the meat processing factories from the deplorable that work at mcdonald's from the deplorable that our farmers from the deplorable zz that live in the midwest, they got 1.4 trillion in free money got to live like a rest to crass because they got, oh, all we live in college town area. huge luxury apartments all over the with that free money paid for with that free money paid for by the deplorable. so you know, that is the truth of what this student loans are causing bad is joe biden created that situation. joe biden did that. he was there in office in 2009 when this bubble was created. and now he's pretending like he's going to rescue the system. and make it all disappear. this clinton biden, eric holder nightmare is back. and that means our ratings are going to quadruple

again. don't go away much more coming your way. is you'll be a reflection of reality in a world transformed what will make you feel safe. isolation community, are you going the right way or are you being what is true? what is in the world corrupted, you need to descend to join us in the depths or remain in the shallows.

it's been decades since the fall of spain's fascist regime, but old wounds still haven't healed and that's because so many from you know, to me in the past at the source mean older than just the same question which we know of newborn babies were torn from their mothers and given away and forced adoption. and only to this day mothers still search for grown children for their birth parents. welcome back to report. i'm max keiser time now to go to safety. and i'm a author of the instant classic, the pickling standard, the book that codified into plain language. why you should been by between us all

time, why it's going to change the world and how it's just making all these other economists like nouriel roubini look like idiots. they've been welcome to the kaiser report. thank you for having me. max. always fun. you've got a new book coming out, so let's talk about it. it's called the fear standard, the debt slavery alternative to human civilization. when and why did the fia standard actually begin if you asked them to began in world war one. when i would like to choose the starting point as the point which the bank of england suspended normal reading of the redemption of english of their starting found in into gold. and if i actively there was never and during world war one, there was no official suspension of redemption. it's not like the bank of england went up and said, you know,

we're getting rid of this gold standard. the gold standard doesn't work. we figured out this brilliant new idea, we can just print all the money in the world and finance the war. nobody ever made that nobody ever made an argument for the fee standard itself. and every time that the standard came about, it came about as supposedly a temporary measure where we were only suspending gold redemption for a short period of time. and it was always, always a promise that we would be going back to gold. but then we never went back to gold and these kind of temporary measures have been dragging on for a century, but hopefully bitcoin will stop them from going on for much longer. right. same thing happened in $1071.00. the u.s. went off the gold standard and they were supposed to top. you can see that on line richard nixon saying that's a temporary suspension, of course, and never went back. and we've had the money explosion, sense then, and causing all kinds of trouble. but imagine the bank, a bank of america,

that period around world war one, that it brings up this idea where the money, our money supply is controlled by centralized authorities that are for the most part unaccountable. and they act under own volition. and there are doing stuff with the money. you know, this is a fax, everyone's lives every 2nd of every day. because i mean it's remarkable all in that it's decentralized for one. and it's governed by an algorithm. number 2. so it's not a guy at the bank who decides one day, oh, you know what? i'm just going to stop the gold standard today, and i'm not going to talk to anybody say. yeah, absolutely. i think if you remember the big one standard, the central idea in the book was to examine bitcoins, saleability across time. and that's where the measure of the stock to flow comes in . and my idea was based on the way that gold bugs talk about gold. you know, they explain gold's monetary properties through the stock to flow, meaning that because the stockpile of gold that exists is very high compared to

annual production. that means that annual production is never really going to inflate the supply significantly every year in gold. and that means that gold will hold onto its value into the long run better than everything else. and that's why it tends to accumulate more value. and that's why, by the end of the 1000 century, gold was really the only money have used all over the world. in the field of standards, i instead focus on the concept of saleability across space. i think if you want to understand the rise of you know, said ability across time, houses understand why gold came along about. but saleability across space is what helps us understand why fia came along because we were as global trade became really, really elaborate and sophisticated and intensive. and people were trading with suppliers and consumers all over the world. they needed money that could travel very quickly and gold couldn't do that physically. and so it had to be locked up in

central banks. and then you have to have essentially credit for gold being true, being used as money. so you were having to trust other people you were no longer using and monetary asset that didn't have any that was not encumbered by credit claims, which is the whole point of gold. once you're using gold to settle internationally, you're, you have no choice but to have the, essentially, the did the have to trust in the honesty and in the credit worthiness of your local central back. and that's, i think because of gold's lows saleability across space. so the astonishing thing about bitcoin is that it improves on gold's saleability across time. and it improves in gold saleability across space and also improves and settled at the across space because it allows us, you know, between us to clear a $1000000000.00 halfway around the world in a few hours, which you can't really do with anything else. and so in my mind, the central idea of the fee on standard is how thinking about how saleability

across space and brought us the fiasco ended. and whether bitcoins improvement and saleability across space is going to be enough for it to unsettle or a matter of moving a $1000000000.00, because i'm quite is a lay in terms of time. and it's also quite cheap. i just saw a $1000000000.00 transaction go through at a 5 dollar fete they cheapest. i've seen any bank offering. that service would be a $1000000.00. so that's an incredible disruption to that business. you know this, this term saleability. it's a, it's a term way all kind. i think we know what it means. it's used by economists, what was the short definition for folks just how they can and put that into their thinking. i like to go with me mangas definition. also, i'm tell forget this definition, you're a member and to forget of course, i think the way to think about it is the saleability of a good. the higher the say, the ability, the less slippage you get when you want to sell this goods. the less it's price

will decline when you want to sell it. and when you think about saleability across time, you're thinking about how much the price of a good will decline, say 5 years in the future. when you try and sell it 5 years later. if you try and sell it, how much will the value that you put in decline because of the decline of a bit because of the lack of saleability in the goods. so it could be that for instance, the e.u. don't find a liquid market for it. and you don't find demand for them, so you have to sell it at a discount to find somebody who'll take it off your hand. that's not a very saleable good. but i think, you know, in terms of distance, you can also think about in terms of the transaction costs, sending a $1000000.00 halfway around the world in terms of gold will, you know, you're going to lose a significant chunk of that gold by sending him there. you're going to lose as a small chunk of by sending there, but you don't lose, i think an even smaller chunk of bitcoin,

if you send it so you can think about it as just how much of the value was lost when years of being used as money because what ends up being used as money is the thing that offers the least loss of value when the holder wants to dispose of it. now, of the tenor of the big coin standard, you know, it gets sent to keynesian economics and i can, i can only describe some of your critics as being savage. i mean, you really ripped the keynesians apart and not, and any gentle way. and a case of the title of this book is called the fear that standard. i mean, already, i'm think and if you're going to rip, rip some heads off here, it is that similar in tone to the pickling standard, are you just ripping to shreds all of the guardians of keynesianism in the gatekeepers of the money? garbage. is that what's going on here? if it is, i can hardly wait, is the 1st one was entertaining us back? well, i'm a little bit older and i have a loon with more grey hair,

so i may not be quite as feisty as the 1st one. also, i've got a lot of people telling me, you know, a, your book was good enough without any of that feisty stuff. you need to stoop down to that level. but you're making me reconsider max. i should probably add a little bit more spice to it. i know there's a will, there's a loop low enough that's my motto. stoop low or when i go go, i go lower. that's what my montra are. let's continue on or sell. you also talk about money. it invites bad decisions. what's a lady? even a worse outcomes? all right, so we see examples of this all the time the, the incentives are bad with fiat money and some of the outcomes are bad to have money saved in. absolutely. so the 1st chapter of the 1st section of the book is divided into 3 sections. the 1st one is similar to the last section of the bitcoin standard, which was the technical stuff that explained how bitcoin worked in an intuitive way the 1st section of the fiesta and explains how fiat's works in the same kind of way

that i used to study bitcoin so in, you know, when i studied between i have this very complicated thing and i try to communicate to somebody who doesn't have a background in economics or in finance or computer science. and with, i thought i do the same thing. and so i analyze in how it works and then having established how it works and how the system functions with an allergy to bitcoin. then we're able to think about the implications of that. so the 2nd part of the book is called life. and the looks of the implications of, well, what happens if you take a society and you give them this kind of monetary system where the supplies constantly increasing and where you essentially, you know, the tokens on the network are not produced through proved work there, produced through essentially, political theater, any government can make any, you know, with every block on the fia network, government can come and add or take out any balance from anybody. and so think

about the implications of something like that 1st of all. you have the implication of time preference, wherein because people expect the money supply to continue to increase, they have less of an incentive to save less evidence and the future becomes more uncertain. and so people become more present oriented, which was a very popular concept in the bitcoin standard, which i touched upon briefly. so i dig much deeper into that. and the causal mechanisms of how time preference affects all kinds of things in society like food and technology, and family and so on. and the other mechanism i think is also the fact that the market economy is massively distorted by the fact that there is an actor in the market economy who basically can just conjure up tokens on the network out of thin air. so, you know, you can have 100000000, people trading on that network and one participant can come in and make as many tokens as they want and buy whatever it is that they want. and so, you know, being friends with that entity becomes far more productive than trying to make

valuable and useful things in most cases. because whatever valuable useful thing you make to others, it can be taken away from you because your tokens are not yours. on the fia network, because you know it's not going and because the people behind of the miners, the fia miners, can just make an infinite supply as much as they want whenever they want. that's corruption, which they have money. and it tends to aggregate in society's worst actors, the warmongers, they money, printers, the banking thing. they end up with printed money. and they way out is that i wouldn't even, i wouldn't even call it corruption because corruption, you know, and in the entail something that was working in a certain way and then it got corrupted. but i think with that that's but that's a feature not a bug, it's meant to be so that people can generate tokens out of thin air. that's the main feature of the system. wow, we're going to carry this over to a 2nd segment, but tell us, how can people get the figure out standard,

do that by the book. do they subscribe? what would tell us? yeah, go to my website, say 15 dot. com and you can subscribe and you will be receiving a chapter of the fee out standard every $2.00 weeks. and you can also be receiving a chapter of my other book principles of economics and economics textbook you will receive that also every other week. so get in a chapter for me every week, and you'll also get full access to for my 4 austrian economics online courses on the website, only for $15.00 a month. so go to 16 dot com. i mean i've read the stuff and it blew my mind. i had to put it down for a while and then it blew my mind again. all right, well that's going to do until the next episode of this show with safety. thanks much brain on the kaiser report. thank you for having the next say, 10 for the 2nd part coming up in the next episode until next time.

i'm not ruled by the board with the blood of an all around us. cornish and do you seriously believe there are these ships that are hoarding del, i don't know, i just see in the local bush in the basin like, oh boy here, i'll walk around with your means to see just to start to look at your bullshit. i

mean, if you look as i wish you the future, we will see that, you know, it is michael moore's carrying out your philosophy was join me every thursday on the alex simon show and i'll be speaking to guests of the world of politics, sports business. i'm show business, i'll see you then we are segregated only by social class. people also in poverty by 1st. if you're born into a poor family, ah, you're born into a minority family. if you're born into a family that only has a single parent that really constrains your life, chances people die on average, 15 years old. if you're born into generational poverty, it's

a tough fight every day. so you meet your needs and the needs of your family. run to the knowledge of nations that it reserves the right to defend itself after its nuclear scientist is killed and will tehran is branded an act of state terror to a full french police officers all suspended after this video of them bring to a black man, goes into the new security ability to protest across the country and even in neighborhood my screams, he called me and asked what's going on, explain and been attacked. remember, one of them called the police, but it was the police who commits outrages with the world on the cusp of a.