hi i'm max keiser this is the kaiser report we're going to talk about a word that means different things to different people depending on where you live what area you live what school you went to that war is inflation so you see yes there is runaway inflation 5 reasons why runaway inflation is imminent according to morgan stanley i might add that in the past week it's emerged that morgan stanley owns 10 percent of micro strategy now so they have a massive bitcoin position they last week when they announced that this would this purchase had been made they also had said of course uses their heads last monday we published the 1st weekly warm up note from morgan stanley equity strategist michael wilson who in addition to warning that the market is ripe for a drawdown as the risk reward has deteriorated may tiriel

a prediction which has yet to pass laid out his most country's arion view about 2021 namely that the big surprise in 2021 could be higher inflation the many including the fed expect currently the consensus is expecting a gradual and orderly increase in prices as the economy continues to recover however the move in asset prices like big coin suggest markets are starting to think this adjustment may not be so gradual or orderly sounds like they're watching kaiser report of course they were. well you know it's. it's the rise of inflation that's coming back into the mix people are talking about it again and it's an interesting con topic because as i said at the top of the show this word inflation means different things to different people and the.

sea. the consumer price index which is the most quoted gauge of inflation is like many things that are generated by the government or by corporations it's censored right so it's the victim of censorship and that number is very carefully crafted to convey a message which you could say is financial propaganda because it needs to hide the fact that behind the scenes things are happening that the government and corporations don't necessarily want you to know about well speaking of censorship and propaganda related to prices this past weekend on orange bowl pod cast we decided we interviewed preston pes you mentioned that the problem with q.e. and this inflation is coming about because of the next step of q.e. q.e. is credit for the banking system where abouts and encounter 3 trillion in new

stimulus on top of the 4 trillion that just came last year so there's another 3 trillion just in the 1st few months of the year then there are calls for you be i or m.m.t. or some sort of regular free money for the people so she mentioned that if we do keep if we do u.b.i. or m.m.t. which we will do is that it has to be met with more q.e. and order to control the yield curve because the fed has to control the yield curve to manage perception so we're going to be unprecedented stuff because it has to happen right. to mean sense the severing of the u.s. dollar from the gold window back in 1971 through the reagan years so the clinton years through the obama years through the trump years it's always been about extend and pretend you know it's been about the federal reserve and other machinations and parts of the system gobbling up all of the. excess liquidity to make it look like

there's no inflation but at some point as we saw in 2008 the total system breaks down and suddenly all these problems rear their ugly head. they were a cure at that time was to quadruple down on these failed policies of hiding the inflation don't tell people the price don't tell any american that the purchasing power of their dollar is going down sharply don't that's the message that they can never let anyone know even though anyone who goes to the store goes to the gas station tries to pay for medical care tries to pay for education knows that the purchasing power of their dollars absolutely crashing rapidly but it cannot be referred to as inflation because only banana republics have inflation like venezuela and other countries and america is not like that it's not inflationary it's something else it's fill in the gobbledygook from the government that is in

a bunch of nonsense sequiturs you know word salad claw wrap it up in academic speak have a rubini or a paul krugman talk about it in the pages of mirror times and you have therefore a very very successful propaganda technique but like all suppression schemes eventually it fails and now it's failing great it's all about perception management so they want to manage your perception so that this a caught the psychology of the people you know you maintain this perception that boom times are here so they do like inflation but they don't want you to get into a mindset of inflation so you know there's that they're hoping i think to have some inflation so you keep on feeling wealthy your stock portfolio or house prices house prices are have gone insane right like they're up something like over 10 percent nationally over the past year despite the lock down but you know who else is seeing that inflation has come. and that he thinks is

a huge risk that investors and the market in general doesn't seem to be prepared for it mohamed el erian this is starting to get to dangerous levels and he notes in particular the roaring stock markets that they keep on going up since march 23rd and that the narrative around why the markets are going at keeps changing it 1st it was trump is going to win and therefore we're going to have more tax cuts and we're having more deregulation and that's great for the stocks and then started to over the summer they merge into well it looks like it's going to be a divided congress and nobody no one party will get any sort of control and that's great for stocks because they can't do anything to mess with us and then when it became clear that it was going to be a biden and ministration then the boom is explained as well the biden mr ations going to print a whole bunch of money and this is inflationary and this is great for stocks but larry and says that when so many narratives are being used to justify price action

it tells you that the price action reflects something else completely and the person interviewed am then asked so what's the real reason for record high stock prices and this is important in terms of the context of what we're talking about in terms of perception and perception management when you are an institutional investor and you put a lot of money in an investment you ask yourself always one final question after you go through the fundamentals the valuations and everything else who is going to buy after me as a buyer after you as someone with a printing press and the basement who has a willingness to use it. doesn't care about valuation and isn't buying to make money that is incredibly reassuring. a right well a case we know that in markets and bear markets the narrative changes to fit your bias you have a bias on the upside you change the narrative so you get that bias so they see the same thing in geopolitics make countries go to war for one reason and then after

they start losing that war they change the narrative famously america and vietnam they change the narrative every year or 2 to make it sound like there was a justification for being in that war but it's the same thing in financial markets so this is a. truism that is being restated and it's absolutely correct and the point being though that with the asset prices going up you mention housing you could look at it from the point of view well it takes more dollars to buy that house in other words the purchasing power of my dollars fall and that's across the board now it's been hidden from people or propagandized away for the most part and people blame themselves for some reason my god my purchasing power is collapsing i must be horrible they don't blame the government because the government surrounded by propaganda but now when this money printing likened $1516.00 trillion dollar economy like the u.s. if you print 3035 trillion like we're seeing now you're actually going to start

seeing it at the point of purchase like the food and stuff you know your twinkies are suddenly going to be more expensive than to be like what was going on here and then at that point the tools available form the central planners and that's what they are central planners stop capitalism remember run out and there's no way to stop today louche and it's famously referred to as when the inflation genie escapes the bottle there's no putting it back and that's where we're at now so the markets are starting to reflect this in terms of commodity prices are starting to zoom higher entering a secular bull market. after being in a secular bear market decline obviously been blowing the whistle on this fake scheme from the various central banks for a decade now all theocracies and hyperinflationary collapse against because it's the only true price discovery in the world but now people are going to start to feel you know for real their day to day lives right and he's then asked what are the implications of this change and you and i have been talking about this for the

last year or 2 as it's becoming quite obvious when you have the likes of the i.m.f. calling for a new bretton woods when you have the world economic forum calling for a great reset what they're they're they're signaling that something has to change and that they're there they're reaching you know they're the exit is blocked they have no way to exit the system and that's what mohamed el erian says he says there is abundant evidence that the beneficial economic implications are low and the cost include irresponsible risk taking higher inequality distortion of financial markets such as negative interest rates and mills missed allocation of resources there is abundant evidence but no one knows how to exit every time central banks even hint at existing the markets become disorderly so that's his polite way you know he's a bond trader at the head of. global you know. pimco so you know he can't say it in the same way we do but what he's saying is the same thing

that tyson report says so he's saying that this is causing the can tell you the facts as destabilizing economies and societies around the world and but central banks on the how to get out of it right this is the equivalent of a davos man and he is a davos mouth sure essentially hitting the panic button and so some blogger out there might be screaming and yelling and doing a tap dance on their kitchen table and saying the exact same thing but it is the exact same thing this is as panic stricken as the davos man can get the message is the same the problem is the same the money the dollar. is in jeopardy just talking a reset a new bretton woods admission that the dollar has reached the end of its world reserve status so. we're heading into that storm and so he's trying to tell us folks over there at the davos a conference you know we need to attack need to adjust course he did but he laments

that he sold it too soon in the 20000 range so well you don't watch enough kaiser report. unfortunately you are only back after this.

join me every thursday on the alex salmond chill and i'll be speaking to guest of the world of politics sports business i'm show business i'll see you then. welcome back to kaiser report with me max has a stay here but time now to return to our conversation with out of gold money dot com ouster welcome back thank you max it was recently mentioned that the quantity of the paper of gold has increased as parabolically as the price of big coin and that shows that the demand for gold is met with more paper gold

rather than price discovery right so in other words there's huge demand for gold but it's met with paper gold the naked short selling in these other types of things so the price discovery is mute you don't get it traction in the market because it's there's nothing there where is the the amount actually of paper that's being issued to keep the price of gold flat relatively. on a percentage basis what he call the rise of bitcoin so a comment on not a lot about if you count is a bit difficult i think to make a simple comparison is that when i was looking at the commitment of traders figures for gold today and the last figures which were for the 29th in fact the c. f.t.c. has made a complete mess of the numbers so we don't actually know the numbers all we do know is the numbers from from comix and. we have seen.

standing number of contracts increase some watched over the last month or 2. certainly it is true that demand for gold has been if you like locked up by expanding the amount of paper and it has been an enormous impediment to the price of gold the market in gold is very very different from bitcoin what we're seeing in because it is actually fascinating because when bitcoin originally went up to round about just under $20000.00 a few years back and then crashed and we saw that that was if you like very much a well you know the 1st phase of something quite extraordinary and the reason i say it was the 1st phase is that the people that participated in it basically were people who understood because they were techies they were and there were a few people on the site you know who sort of souls saw something rising 00 or

better join in on this and had a bit of fun lost a bit of money whatever. but always you get a 2nd phase and in this i mean i'm just talking dow theory no more than that and that is when the serious money begins to come in and buy it and that's what we're seeing now is seeing institutions waking up to this extraordinary combination where you have got. a real cap on the supply of something like bitcoin whereas at the same time the amount of currency being printed is. is expanding as a massive rate so what you do this is obviously reflected in the relationship between bitcoin and fit so what institutions and i doing is they getting into the game because almost a well they begin to understand the story or half understand it they don't understand actually that is the dollar going down rather than bitcoin going up but they do buy into this relative supply argument so that is a very different situation from goat with gold. the whole of the establishment

basically keynesian they reject goat i mean otherwise they would actually own it the ownership of gold and sushi is very very low i mean it's less than one percent probably less than half a cent. they probably have a few goats substitutes as pumps but the point is they never look at gold as money they look at go to something well if it's going to go up because the dollar goes down then what we will do is we will buy some gold we will trade it in order to sell it for dollars at a later stage now that is the way you look at a speculation or an investment is not the way you look at money money is something you hold onto now i think that what's likely to happen is that if we get the collapse in the purchasing power of the dollar and other thing that currencies which i predicted in your last segment then on that basis we're likely to see the price of gold rocket or more correctly the relative difference between the

purchasing power of gold increasing relative to the purchasing power of the dollar which is collapsing and under those circumstances you can begin to understand why gold is sound money it also has the left so i'll have a cloud offering pick cotton is sound money. i have 2 problems with that could i see because it is an excellent store of value while this crisis progresses and that is what we're seeing and i wouldn't be surprised if it could've went consider. hired them this in fact i would be very surprised if you didn't go considerably higher than this but the problem with bitcoin is ready to phone fescue the central banks don't which is something that you alluded to in the 1st segment but they do in goat says the only thing that they can actually use as a last resort is their go preserves and the 2nd problem max is that if you. borrowing money in order to invest in the production of something then you need to

know what the final value of that money is when you come to production so if you're going to borrow bitcoins say for 12345 years to make cars all whatever it is then you have no understanding you have no idea what that final value is likely to be it could be that a rising value for bitcoin means that the price you get feel final product actually fools very substantially now that would rule the use of bitcoin if you like as an investment medium industry let me ask you isn't saying that non financial non economics and but it does relate to because in this conversation i think you know a year and a half ago or so digital currency grew up in new york came out with an ad campaign called drop gold and by the coin and at the time the gold community was aghast at that how could anyone make such a ludicrous suggestion now we know from the data according to blackrock and others

there's been a tremendous amount of outflows from gold e.t.f. so stupid coins principly digital currency grips greyscale big client trust right there they're not number one beneficiary so the question is how important is marketing today when it comes to gold because i and an understanding everything else. around us because it seems like that was a genius move from a public relations and marketing side and or it was that an inconsequential it's kind of just happened to happen and it was not really important in the grand scheme of things what do you think alister a marketing campus wait people to do. anything and marketing certainly has an effect so we could give them some sort of money and that basically means they

can monetize the only thing they have which is known fish and that is goat and i think it's a simple and as a practical money you need flexibility is the key point is you don't want the quantity it goes to be decided by the government you need to be decided by the free market and that flexibility is terribly important it comes from 2 sources 1st of all is mind supply the other thing is that probably only about half of above ground gold stocks is actually held if you like for money or quezon $1.00 tree purposes the rest of it is in jewellery you know sort of various other bits and pieces so. you can draw on that jury if you like if there is a demand for gold from the market then that that can be fulfilled by an expansion of the quantity of scrap we have a bit of a paradox air out there because yours you've alluded to the fact that when it comes

soprano it's to another governmental policy an act meant it's total deadlock they're totally wed to keynesian economics they're totally in debt and the idea of them allowing the free market to take over and not them on to everything that they stand for at the moment and it would put countries like russia and china in a much better position globally so that's that's one side of the equation and the other side of the quezon you're saying that the central banks if they don't have money have. all the daemonic ties by because they go out of business and so do the central banks the sort of the governments and there's a large body of people around the world who would say that's great because they are completely in deadlock they have ceased to be relevant and they are no longer fulfilling the social contract i mean going back to the 707 john law let's let's mention john locke and then crash of a social contract that's been completely obliterated so maybe my question is maybe

it's time for the central banks and the centralized governments to go the way of the dodo become extinct and we have a true free market based on because i know this is quite a leap but alistair what are your thoughts tensional banks have created so much misery for all of us by transferring wealth by basing the currency. that there is absolutely no they do not know what they're doing they mean this the hotel chains and rubbish has been disproved so many times but nobody is prepared to listen except to last but in a practical world governments are going to continue to exist and in order to exist they need financing so they will grab what they can in order to do that they're not going to just i mean we're not going to just have a sort of a compete on a cake but the main point behind it is that for governments to continue after a currency collapse what they need to do is to accept the fact that money is going to be just decided not by them but by the markets that is down to the markets it

could be the markets decide that bitcoin is the pharao form of money compared with gold i mean we don't know this we don't know this for certain all we can do is prove noster case. and the reason i'm suggesting that goat is likely to be the money of the future is not only has it always been the money of the past when everything fails but central banks have it is the only means in which they can get their current seat. again says that government can continue the other side of this coin of course is that they do need to cut government spending things like you know blues defense budgets welfarism the idea that ordinary people should be looked after by the nanny state all that has got to change and this is a major shift if you like in western government thinking it's not going to be an easy transition but the alternative is nothing so they will do it they will do it

probably when the dollar has fallen to one percent of today's value i mean you know the advantage of having an existing fish currency is that you can turn it into a good substitute merely by changing the arrangements whereby people can actually cash them in full gold as a fixed rate that is easy enough to do the difficult bits of getting over this psychological thing of thinking that you can print for ever you can inflate to finance anything the government wants to do that's got to stop and the 2nd thing is you have got to stop all these geo political games which have done very much at the expense of people. countries perhaps who don't want to use the dollar all dispirit sort of want to opt out of the dollar system they get punished if they do that the american state has enormous control of the rest of the

world by virtue of having that dollar again many says i really think that there will come a point where reality if you like impinges on the government slightly to be a lot further down the collapse of currency road than it would otherwise be but that is the nature of it fair enough to go out thanks so much for being on kaiser report as my pleasure thanks max for this edition of kaiser report with me max kaiser. and stacy herbert want to thank our guest alsa macleod called money dot com until next time. i can't show you my but i'm going to teach you must story in 1993 this man was

sentenced to death. charged with capital murder even though he didn't have the gun didn't pull the trigger didn't intend to kill anybody imagine living in your bathroom for that week with his telephone 23. i doubt that i'd be. confined within 4 grey walls. using. them to leave this room.

i got this 8 millimeter film purely by accident. time period 963 to 65 place damascus. i don't don't know why young. i've watched it many times a man posing the monuments and all poster of the hollywood premiere of town without pity and a fight in a mock so without bruises. i had my doubts if i should waste my time on this but i came back to that film over and over again tracing a sequence of events happening in syria at that time and most of those who worked there the wood on the. ground in you know what you'll see in the new deal curiosity

is like a perpetual motion machine it lives on without a lunch break and then suddenly i saw him stop let's take another look now at low speed this is key like 0 on a super spy who some consider a national hero and others an evil villain an israeli double o. 7. because it's but it's them and they at the. at the on shore still. let's come together impeach the president not just about impeachment anymore it's about canceling it he is a clear and present danger to the u.s. house of representatives voted to impeach president trump for the 2nd time after an impassioned debate while many on the floor can't wait to see the back of him this

to say it's more a battle with a niche than justice all sides to come to south. bend the lies then torched hundreds of rise to such a brussels police station on fire after an african immigrant dyce in custody.