you know when you. seem wrong. when old rules just don't. mean you get to shape out just because get educated and engage with equals betrayal. when so many find themselves worlds apart. choose to look for common ground. a little. like a back to the kaiser report imax guys are time now to get it john have be an hour of dollar collapse dot com john welcome back to stacy now john we've known you for

many years going back pre-budget coing days and well 2020 seems to be there that the queen has driven the dollar to collapse in a way that gold was unable to john what do you think of that i think the dollar was was headed south big time regardless of what other assets were doing what time but you know is clearly playing a role and gold is up sobers up so i think there is clearly money flowing out of financial assets and into real assets now you know how this plays out in terms of which real asset ends up being the winner i wouldn't even venture a guess but i think there's room for everything you know there there is room for gold silver and bitcoin to all go through the roof in a currency crisis because if you you know if you add up the value of the available gold right now and all the silver and all the kryptos you get something you know south of 10 trillion dollars in

a world where total investable capital is something like $300.00 trillion dollars so a couple percentage points flowing out of stocks bonds and real estates real estate and into. real assets like gold silver and big coin will send them through the roof and you know which goes up more i wouldn't even care to venture a guess i think you should go and pretty much everything in that universe if you want to diversify away from financial assets but i tell you what i bought my 1st bitcoin this year finally because the the grayscale. e.t.f. made it easy to do but i've always been loaded up on gold. sober and it's nice to see that finally working out now that we're in 2021 we obviously survived 2020 so we're still here that was said to be the year that was a catastrophe but in the big space as you mentioned it was a remarkable year 2021 we are now in the 50th birthday year of the u.s.

dollar global reserve standard global trade settlement layer so does it survive 50 does it live to see $51.00 you have a website called dollar collapse dot com well like you've had it for a peek at least a decade so you know is is this 50th birthday the final year is it is that the end that's like for more than a decade you know if this is the end it's about damn time you know a little background might make sense for your viewers because you know we as you said we began the fiar currency experiment in 97150 years ago and that basically handed all the world's governments an unlimited credit card they could you know henceforth create as much new currency as they wanted to and you know knowing what we know about human nature inevitably they were going to be abused that privilege and they have debt has soared at every level of every major society and the. the amplitude of the resulting booms and busts has gotten bigger and bigger and so you

know there was always going to be a time when when a bust came along that was so big that it would force the world's governments to bail out everything in sight. and you know the trillions and trillions and trillions of dollars and euros and yen that that would require would shift the pressure from the real economy over to currencies in other words people would figure out well you know if the money supply is going up 20 percent a year and interest rates are negative why do i want to hold this negative yielding asset like a government bond or like a bank account so people would then start shifting into real assets in a big way and that would spell the end of the fiar currency experiment because governments will have lost the one tool that they have to manipulate markets that which is a stable currency so 2021 is looking like a very interesting decision point in this process because the pandemic and more

importantly our response to the pandemic has created that that bust where everything in the world has to be bailed out now so starting next year whatever new government that the u.s. has whether it's all democrat who are divided between democrats and republicans they're going to face this challenge where they've got states and localities going bankrupt the restaurant industry going bankrupt airlines cruise lines commercial real estate hotels everything you can think of almost is dying out there and so we either bail them all out at a cost of you know $5.00 to $10.00 trillion dollars or more or we let them collapse and have a 930 depression you know they're not going to accept the 93 is down depression scenario willingly because whoever's in charge then the herbert hoover of this generation right will remember them forever as the guy who presided over the biggest bust in our lifetimes so they will try to inflate their way out of this

tons of new currency in negative interest rates etc etc and so then the question for next year becomes what do what do we all do about that you know does everybody figure out that the. last place you want to be is in a currency that's being a play inflated away this aggressively and bail or do they continue on as they have kind of oblivious to the whole monetary policy thing and and let the bailouts work to an extent so i don't know which that will be because i i didn't expect us to be able to get through the bailouts of 20082009 without some kind of a horrendous currency crisis and we got through it so you know to that's a long answer to what was a short question is this the end of the dollar. maybe but it certainly could be the beginning of the end this whole question of whether or not the dollar has collapsed or will it collapse it's a bit of a misnomer isn't it because again stocks and bonds the dollar has already collapsed

right there in a hyper inflationary collapse again stocks and bonds and in a whirl of untethered fia money that's flowed against itself without an anchor where the financial establishment the financial industry can financially engineer where that cash flow goes where that money goes and they can direct it away from labor costs they can they go and direct it to stocks so. they've been able to hide the fact that the dollar has been collapsing for the average person it takes. to take a few hours to buy one you know the s. and p. a few years ago now takes hundreds of hours of unit of the s. and p. so clearly your purchasing power in dollar terms has collapsed but in 2021 is it going to be impossible to hide the fact that there is a lot of underlying inflation and we're going to start seeing in the c.p.i.

and at the same time it would seem that the commodity cycle is turning e.c. copper or the grains are now moving in much higher in price even silver is moving higher price and so there's a cyclical turn in commodities plus inability to mask the fact that the dollar's been inflated away in its own special way for years and years do those forces come together in 2021 and suddenly people notice that food and energy for example doubles and triples in price john maybe well i think you said the quality cycles tour so i'm suddenly it's not just starts forms in real estate that are going through the roof which is to say the dollar's collapse or next to those things but you've got all kinds of foods like iron word copper going up dramatically right now and that feeds back into. what the official inflation rate measures in other words it feeds back into the cost of living for the average person so if all of a sudden we seeing prices of the stuff that we have to buy every day go up by 3 or

4 or 5 percent then then that's inflation you know that's inflation as people define it and we will consider ourselves as a society to be in an inflationary environment but like you said we already have been it's just it's really narrowly focused environment or inflation now it's going to be broad based and that's that's another interesting turning point if people come to the conclusion that their prices are going up by 3 or 4 or 5 percent but their bank account is yielding 0.5 percent their bond fund is yielding next to nothing. and basically everything connected to their currency is not doing very well then that's the kind of phase change in market psychology that could have a big impact on the dollar so yeah you know that that could feed into the and the process of people giving up on the currency you know in the austrian school of economics there's a concept called the crack of the which is the point at which

a critical mass of people realize that it's the official policy of the government to make the currency worth less and less year after year and they act accordingly they bail on the currency by converting it into real stuff so this could be the year when that happens we're at a minimum it could be the year when it begins to happen when we see that as a notable trend in the financial markets and if so then then it becomes a question of how do the the market manipulators react to it you know the big banks in the governments of the world how do they handle that and it's not clear there's any way to handle it once it's it's going because we can't raise interest rates you know we fixed a currency crisis last time we had one of the 1970 s. by raising interest rates to almost 20 percent and can. you imagine what would happen if we tried to do that now you know would bankrupt everybody with variable rate debt which is to say almost everybody you know this is them would just freeze up in a heartbeat so we can't fix it once it starts we are in 2021 joe biden is about to

take office he seems to like m.m.t. he certainly has a lot of people around him like this modern monetary theory so what happens with that because that will you know there will be demands for it free money you know the bankers had free money for quantitative easing for over a decade now why not give it to us we have this experiment of the pandemic everybody got it has unemployment benefits and stimulus checks why not give another you know $5000.00 a month to every american a what happens if that happens. well. modern monetary theory is one of those rationalizations for bad behavior that comes along towards the end of a binge you know when you've been doing something that you know shouldn't do but you really can't stop and you start making up reasons why it's ok that's what modern monetary theory is and you could make the case that we're already there we're just we're doing some things in terms of terminology basically but let's hide

the fact that we're doing it but basically what we're doing now is the government spends whatever it wants the fed issues new currency and buys the debt that the government issued in order to spend whatever it wants and then the fed rebates the interest on those bonds back to the government so in effect the fed is financing the government directly so we're already kind of doing m.m.t. when the time comes that we actually admit that we're doing it that is one more data point for people who are paying attention to look at and you know used to complete the puzzle that they're completing bit leads them to conclude that we're destroying the currency and so yeah you know it could be that we officially adopted them to next year but we really don't have to because we're already doing it in effect so one way or another the government borrows a ton of money the fed finances it and we keep on keeping on so you know we'll see i don't i don't know whether. i don't actually don't know whether biden believes

that i'm going to you know i might be the kind of thing that he's fooled into kicking and screaming because he's at heart kind of. an inertia based politician where he doesn't really want to make any big changes you like the world just as it is so it could be that that change in terminology is a hard sell or are coming government hey let's take a breath and when we come back more with john rubino don't go away. has changed american lives but pharmaceutical companies have a miraculous solution. based drugs to people who are chronic pain and believe that their opioid prescription is working for them in the remedy. to. price at the. close of dependency and addiction to opiates the long term use that really isn't

scientifically justified and i'll study actually suggest that. the long term effects might not just be the absence of benefit but actually that they might be causing long term. l. look forward to talking to you all that technology should work for people. must obey the orders given by human beings except where such orders would conflict with the 1st law show your identification we should be very careful about official intelligence and the point of view c. is great. everyone of them shia. very chummy with artificial intelligence will summon the demon. a robot must protect its own existence its existence.

welcome back to the cause report time now to continue our conversation with john rubino of dollar collapse dot com now john during these past elections americans of course are busy fighting each other in the straits meanwhile the i.m.f. announced that they want a new brinton woods tell me what flavor are they looking for what kind of bretton woods what does this mean john tell us. well with these guys it's anybody's guess they did say bretton woods but they didn't say anything else beyond that so who knows when they get together i mean it. jim rickards has a theory of good the next system will be based on special drawing rights of the i am. which. you know i can understand that as a sequential process as that's the next thing but all special drawing rights are is

a currency based on a basket of existing currencies so if the existing currencies are no longer function was reserved assets then i don't see how a basket of them turned into a security hold be the s.t.r. does you any good you know i think we would have to go all the way back to or to get something that works we'd have to go back to some variant of the gold standard right or you could think that basically they're stealing from wall street which had a bunch of toxic mortgages and what were they going to do with it that's the situation of the dollar right now and well they packaged up into fancy collateralized debt obligations mortgage backed securities and sold them to pension fund so in a way you know this is just rolling out into a different debt instrument hoping people don't notice you know you saw that when the euro was introduced like a lot of countries like italy and greece like suddenly use that as an opportunity to jack up all their prices of coffee and the public transport and things like that

it's got everything gotten you know confusing at that transition over to a different currency so i mean maybe that's a way to dump a lot of new debt and create a new credit facility as they have been warning about since that was 2011 when they said you know that they need $100.00 trillion dollars in new credit they already signaled that back then but you know tying this into the world economic forum davros you know they also came out of the same time about the same week that the i.m.f. suddenly like let slip while most americans weren't looking that when the i.m.f. slip that they want to do grand was ringback the world economic forum also said we need a great reset so like it seems weird that americans don't really know about this happening on the world stage that there's like plans for the demise of this u.s. dollar and the demise of the empire. what do you think it actually ends up looking like what does it look like for the ordinary american right now right today if we

no longer have an exorbitant privilege would it matter to them or anybody at all it would be catastrophe for for most americans because remember we we don't live within our means in the u.s. we are able to borrow trillions of dollars a year from the rest of the world because we can give them dollars which they consider to be valuable and they give us real stuff in return so if we had to live within our means we would basically have to cut the average person's living standard by a 3rd or so and that would be brutally painful for people who are just now getting by so yeah i don't know how you go from being the world's biggest debtor to being a country that has to live within its means like everybody else except that it would be incredibly painful so you know what's coming has to be painful you don't get out of this kind of debt without a really brutal stretch of of living to live living with a new reality learning to live with the new reality so our question now our choice

now is between. crazies you know we can have a deflationary crash or we can have aggressive inflation or we can have some other kind of crazy thing happen but they're all going to be painful for a lot of people so it's a question of allocating the pain and i don't know what they'll choose i mean i think we lean towards trying to inflate our way out of stuff like this but if we lose the ability to do that because of the world changing its attitude about the dollar then you know there's no way to do this without chaos and if we thought the . the summer of 2020 civil unrest in the u.s. was an extreme you know era defining event wait until we see what happens when the public sector pensions get cut in half or most you know medicare or social security get scale way back which is kind of what you'd have to do mathematically if the currency doesn't work the way it does now so all of that stuff is coming some

combination i have no idea what the combination will be of but very bad big things have to flow from borrowing this much money and you know you know we also can't know about the timing but the coming year could be a time when a lot of when a lot of decisions are made the set the stage for the the really bad big things that come next right and rhetorically speaking we have a similar comments on the world economic forum they're looking for a great reset. like a brain was like language that they're using there and you mentioned about the pain and how it will be shared at the table of course the rights of all bretton woods came after world war 2 and america was the winner and you know you could argue that america won the brentwood agreement of the early forty's because we won the world war 2 here in 2021 america has spent its entire goodwell and world war 2 dividend if you well it's all gone so when they go to that table

now and they found a figure out who gets the most pain i would say that america's got a very weak hand at this poker table john what do you think yeah i think so you know that i think the. the consensus around the world will be that the guys who cause the trouble are the ones who are going to have to suffer most in order to fix the problems and and you know the developed world you can make the case that ok we got to use up all the oil and all the other natural resources to just live these great lives and it's time for us to live smaller in order for everyone else not to have to suffer the way they would if we equally allocated the pay in based on you know 2022 xl levels of lifestyle or whatever but. i don't think we'll accept that if we don't have to you know so there will be conflict. and you know hopefully not

military conflict but certainly political conflict as this plays out when when the rest of the world asks a lot of us and we really don't see any reason that we have to to give it up that is you know. the political side of this i think is going to be dictated by the financial side if the financial markets descend into chaos. then that's going to drive the agenda for everybody else and i think at some point see right now nobody wants to go back to a monetary system that constrains the power of governments to print money because that's just a great power to have who would give it up voluntarily but i think the financial markets are going to force our hands in coming years and we're going to have to go back to some kind of a monitor of a monetary system where the currencies of the world are linked to something real that has a limited increase in supply nobody's going to want to do that but i think we're going to have to and i think that will be the you know hopefully i mean if we don't

have a nuclear war or anything then the big monetary reset will be did indeed finding events of the next few years and hopefully they see it as the least painful of a series of painful options sooner rather than later instead of being forced into it by global chaos they just decide to go ahead and do it you know some sunday night may be the treasury and the fed announced that henceforth the dollar is just a word a name for 110000th of an ounce of gold and then on monday morning that's that's where we are you know everybody has this huge burst of inflation in the cost of living but then we go forward with a monetary system that's sustainable that is the least painful option but there are a lot of other options and they're there brutal so i hope we don't choose the other ones i hope which is it mention italy or war and that is another story that we've been focusing on is the thesis that if the strap we see china especially in 2020 i

mean they're the only economy running the only huge economy running at this point they survived relatively unscathed just like the united states survived world war 2 relatively unscathed when it became a american century effort that now we see not only are they up and running like the economy of china but we also see them like leap frogging. just like all sorts of tech developments that is insane they're on their own 60 we still haven't rolled out ford 5 g. in america they're landing you know missions to the moon there you know they have this new nuclear power plant that is like a song on an artificial sun like it's all sorts of new advancements in artificial intelligence everything like that so i mean it seems like this might be the year i assume is they. want status and the competition for 5 g. it seems like they got very almost violent then and where do you think that's going in 2021 the year that we're in right now well that's really one of the big

challenges of geopolitics how does an existing empire accommodate a rising empire. with out all out war and historically. they don't they they fight that war and then they find out and usually the rising empire because the existing empire and that's that. if we tried something like that now you know the weapons that we have developed don't even really belong on planets you know this is star trek level stuff that we've got you know these hypersonic beings and these drone you know drones managed by stuff like that so we we can't have another war an all out war between superpowers we just can't so i really hope we can avoid it but it doesn't seem like the guys in charge of big countries are trying hard to avoid this you know it seems like we're we're using geopolitics as a way of distracting our citizens from our own mismanagement you know you create an enemy out there and they tend to cut you some slack why you're contending with that

enemy and you know governments have done that since the beginning of time. but sometimes that leads to actual war and i just can't imagine what it would be like this time so you know it we should all be hoping that the the great powers come to their senses before we start shooting because nobody knows what's going to happen once that starts right rather pick up online poker game analogy at the poker table so the u.s. has lots of debt and around the world different countries seem to be preparing for this i china's been buying a lots and lots of coal russia has been buying lots and lots hundreds of tons of gold and it seems like they're moving their finances into position for a possible showdown at the bretton woods corral the reset corral are these countries better positioned than what is that this america have any member in the

in the eighty's john it was the japan which had take over american economy and they went in america kind of when vent. the internet suddenly and japan couldn't keep up and america took over again you know they did a hockey stick save to use another analogy an ice hockey analogy does america have a rabbit to pull out of the hat to save itself from what looks like a horrible hand ok maybe you know a relatively free society tends to be more innovative authoritarian society so that's how we've leapfrog the soviet union in japan maybe we do it again with china but who knows you know this could be a very different time all right well this was a fine after starting off 2021 on a bang maybe a dollar collapse dot com might actually comes through this here after 20 years at it john or being one of our oldest friends he's been on the show going back years and years so so great to have you on john to get your perspective a very very valuable thanks for being on kaiser report thanks max thanks to you see

i enjoyed it. already well that's going to do it for this episode of cause report with me max keiser and stacy herbert want to thank our guest john of being out of dollar collapse dot com say next time. the way of life the reindeer herding is leading a traditionally nomadic lifestyle of the tundra is similar to a parallel reality. a. lot of them in drive the hoods women carry the weight of the household look on their shoulders to show them the truth that one also lets she'd. sit you close no thank you that's not however in the vast expanse of russia there. were a housewife could secure

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