we're practicing the hustle google that but i think i'll do the feather haircuts unless the people in the audience out there if you say no she should get a permit said well then i'll get a perm but in the meantime i want to say you know inflation is back if you lived through the seventy's you remember the inflation you remember the one lines and you remember the disco well inflation is spreading broadly into the economy amid surging costs companies raise prices and customers pay them despite weak economy $10000000.00 missing jobs the signs of inflation building up in the economy are now everywhere markets in this release of the flash p.m.i. with data from companies in the services and manufacturing sectors added to that pile of evidence and increasingly max companies are able to pass higher input prices on to their customers meaning their customers are not totally balking at paying higher prices and they're not switching to other sources to dodge those price increases that's a mindset that nurtures inflation and that's right that's why we've been talking

about for a while now because all this talk about deflation by the central planners was trying to hide the fact that they were involved in this grand global switch a roo where they made the chinese economy very rich at the expense of the american economy and they kept making the chinese economy very rich by sending them chileans and trillions and trillions of dollars and claiming that there was deflation in america but now that china is rich there's no place to hide the money printing anymore really that was the grand money printing sinkhole of the past 20 years but there it's filled up right that china is filled up get can't any more free cash without causing inflation over there they don't want that so it's going to ricochet back so now. we've got the same money printing but you can't stop because the debt

service is astronomical so they can't stop the money printing you can only increase the money printing sonera going to see real prices go up for stuff and there's no turning back because to turn it back would mean raising interest rates and that would mean an immediate 1971 like u.s. default on its sovereign debt as they did in 1071 and no one's going to do that so the inflation jamie is popping out of the bottle well i think part of the thing that you see is back in 171 we did have huge amount of inflation and the inflation and the increasing debt load forced the government to abandon the gold standard gold went from $97.00 he was worth $35.00 an ounce by 1980 it was 800 $50.00 an ounce so it went up $24.00 x. and that time extreme amount but at the same time what we've had for since 2000 really in the us since the collapse of the dot com bubble 2001 where you're seeing

is increasing credit to the top one percent to the bankers to the elites so it's just credit it's not money printing we've seen in of the magnitude that we had to see back when we were on the gold standard in the late sixty's because of the war leading into the seventy's and the unrest then so what you've seen is yes i mean you could argue it's been deflation because they keep on creating trillions upon trillions of debt for the same size economy and so that was always unstable but all those wealthy people used it to buy huge amounts of assets agricultural land properties all the cities of the world essentially them buying up the madrid leon he's in the picasso as they've been buying up all that art now in the past year as bank of america just came out with a report saying that the u.s. economy is going to go crazy overheating in 2021 because there's so much cash that was given to the population a large part of it has been saved because it there was nothing to spend it on and.

went to a lot of people in just the spray hose fashion because a lot of people they didn't actually need it so it's just sitting in their savings and there's about 3 more so here you're seeing that you're seeing that people have a lot of cash because companies are easily able they say according to these recent data survey that's done for decades you know they're they're saying that they're actually able to pass it on consumers aren't popping they're not stopping purchasing whatever these goods are like lumber lumber is there's actually a shortage of it now they're saying they're having difficulty finding lumber because everybody's fleeing the cities and building homes out in the rest of america because credits easy to come by so the prices are going up but there are builder and you want to go buy some lumber you just put it on credit and the interest on that credit is factored into the equation of your business model where you can borrow against the eventual sale pay down the debt now and you've got a positive cost to carry and all that's great and so we have

a night 2008 type credit freeze as we did in 2008 and that's a guaranteed going to happen probably in 2021 credit comes to an absolute halt and forcing a cardiac arrest in the banking system what you'll be followed by the to figure later of money apply directly to the chest helicopter money trillions piped into people's homes instantaneously at the click of a mouse and that will be yet another chapter in the dimaio of empire up oh all right and in the 1970 s. we had a supply crisis with oil because we had the oil bargo from the arab nations that cut off oil to the west now we have that similar you say lumber in the credit but the fact is there is a genuine supply crunch if you talk to builders and this that market survey did interview. dozens of companies and hundreds of companies across america and

builders are having an actual physical problem getting physical supply of lumber they can't get their hands on any so therefore you have to delay the house building project you have to delay if you try to find at whatever cost that cost has to go up in order to shake out some new supply of lumber so we're seeing similar supply problems partly perhaps caused by the pen demick but also because of just the shoot rush sudden rush not you know plant 4 years ago about what we're seeing now in america but again you know in terms of the comparison to the seventy's back in the seventy's there were a lot of things that were super cheap right like you could live in an apartment very easily could hitch hike across america i think which i can still eagle probably all across america at this point but you know there were a lot of things that you could do that were super cheap and food was real like it was before the whole process food sort of explosion of innovation and that sector

of giving you flavored goopy stuff so you know you still got your nutrients relatively cheap compared to what you're getting now and the unemployment rate member we had stagflation back then because inflation and product and goods and services were going up but jobs were the recession was hitting hard and there were a lot of unemployed people 'd new york city was bankrupt new york city could be going bankrupt again by the way 300000 people left. manhattan and the last year so inflation pressures despite a weak economy and $10000000.00 missing jobs it is interesting that these price pressures are happening even as the overall economy is not exactly blooming with g.d.p. down 2.8 percent in q 3 compared to a year earlier while 10000000 jobs have disappeared according to the b.l.s. jobs report for december amid a suddenly weakening employment and scenario since late last year you can see that in this chart but of course back in the seventy's we didn't have the printing press

we didn't because we had just gone off the gold standard so they central bank couldn't print money like you can today but paul volcker was not going to write that was a difference at a central banker who knew what the role the central bank was but you know the stagflation is exactly i'm going back to lumber right people are willing to pay the price for escalating lumber cost if they could find it but they can't because then are lying economy is being destroyed due to mal investment due to years and years of all that money printing going into pockets of the economy not being distributed based on supply and demand we had a command of control economy sense greenspan and so you have mal investment and you have kind of a soviet era mishap in the u.s. economy this protracted be papered over with money printing resulting in the current stagflation which is reminiscent of the 1907 days except as you point out there are a few more moving parts here that we have to watch carefully because they could

accelerate or as they say in the arse and business an accelerant to burn down the house a great talking head song by the way burning down the house i suggest you play that while we're talking and it matches up perfectly just like if you watch the wizard of oz without the sound on but play the pink floyd album very famous plane floyd they match up perfectly. interesting and yes thing 1970 s. trivia therefore you yell and says you. must act big on next coronavirus relief package neither the president elect nor i propose this relief package without an appreciation for the country's debt burden but right now with interest rates at historic lows the smartest thing we can do is act big of course that's totally different from what we saw in the 1970 s. when manhattan went broke which did ford say to manhattan drop dead right now now it nobody jobs said all debts are maintained all debts are kept alive all citizens get free money so that's like very different from the 97 is this what i'm saying

but at the top of the show i said history doesn't necessarily repeat but it rhymes so there aren't the exact same things we do have the unrest in the streets that we had in the late sixty's early seventy's we have different obviously it's a spun the wheel around and shook out the people who were protesting in the street in late sixty's and seventy's are now the authoritarian police state themselves they're the cointelpro they're the authoritarians they're the ones on the news for aiding the young people so you know there is a similarity but what yellen also went on to say in her testimony to the senate she said even though the amount of debt relative to the economy has risen the interest burden the amount the treasury pays to service that debt has not due to low interest rates she says she will watch that measure closely as the economy recovers so yelena saying that if the economy recovers and trust rates will go up. yeah

exactly you know the thing about the 70s if they merican economy was still fundamentally strong and it could withstand those shocks but when yellen says we're going to go bait and fine this is going to print scads of war many many chinese war chest understand that she's pouring that money into something that's structurally broken it's like a bucket what the bought of the bottom is missing it doesn't matter how many it's liquidity she pours into that bucket is structurally broken it's just going to come right at the bottom doesn't matter how much she pours and it's this think the economy is fundamentally broken all the distribution all the finance everything every piece of the puzzle has been decimated by the command and control money printing psychopaths that have run the economy since greenspan and that nothing's going to change that in the seventy's we of course had many faction capacity you mention that and from 2001 we started shipping our jobs to china so we don't have. the capacity to convert that those dollars into wealth creation like it just goes in to the economy so that's also radically different from the seventy's so we don't

know what sort of inflation this is going to cause what could happen with what bank of america and other big banks are saying that we're going to see paul saying or it was on the news just this week so yeah we're going to see 70 style inflation well remember follow the yellow brick road follow the yellow brick road we're gonna take a break and we'll be back right after this. 24 do you know bloody revolution of you tube the demonstrations going from being relatively peaceful political protests to be creasing the violent revolution is always spontaneous or is it you know here i mean you know i live put pretty good pretty me in the in the blues and i knew pulling me to the former ukrainian

president recalls the events of 2040. those who took part in this to do over $5000000000.00 to assist ukraine in these another goal that will ensure a secure and prosperous and democratic. elgood forward to talking to you all. that technology should work for people. must obey the orders given by human beings except where such orders that conflict with the 1st law show your identification or should be very careful about artificial intelligence and the point only use the great transfer of the shia. areas johnson with artificial intelligence will summon the demon. the obama's protect its own existence.

secret prisons are not usually what comes to mind when thinking about europe however even the most prosperous can be deceived within this 0 song there were 2 view houses were. prison were located and the only. access to the story investigators sure held the uncovered the darkest dealings of the secret services but i mean. the great ignore. for. crying for justice on r.t. . what does the let stand for today not long ago the less stood with working people and civil liberties now it appears to prioritize and in a carry over issues we hear the word would be a lot but not

a fall of kenya is there a place for america you know politics anymore. welcome back to the kaiser report imax keyser time now to go to lunch leppard he is an investment manager at equity management associates lawrence welcome back to madison so there's great to be reading selami. but a tweet from a guy about grier it's of gold switzerland dot com said recently in a tweet there can't be any clearer sign that price discovery is a possible this totally fake paper gold market whilst fake paper gold is trading 70 trillion dollars a year annual mine production is a mere $213000000000.00 and your thoughts just go through point i mean i wanted to know that the gold market is not a real market. you know it's essentially playing tool and you can see that they bomb it at certain times and you know no price discovery or no person who's

interested in real price discovery sells the way they sell it or she points in time so i completely agree with you interesting thing which i'm sure you've observed to talk about a lot on your program is that you know because somebody votes you know when you know they're hyper inflation rather blatantly and you know something they can do control it and you know they go real problem here you go crackers and they go up and it's a share the crack up boom south this was i believe postulated by hyman minsky the problem of printing too much money is that eventually a people like we saw in the 1920 s. they jacked prices up to astronomical levels 'd and they used the collateral from those jacked up prices to finance more speculation and it's a self feeding phenomenon it's an incredible bubble i've been thinking that we are in kind of a 1920 s. bubble at this point all the rules and regulations of the 1920 s. that were absent that were then imposed during they cleaned up phase in the

thirty's those have all been removed you know you got rid of the uptick rule for short selling you got rid of glass steagall you got rid of. pretty much everything that was imposed after the crash of $29.00 to stop the crash it's back it's being abused much much worse so are we looking at a $929.00 ask crash at some point lawrence it certainly feels that way and the records i mean you know we're going to need a record commissioner riddle oh you're right a serial being eliminated sarah will also go through much more late markets a lot more technology so you know there is aggression i mean you can see you know really work it's early no real crisis we're going on here and 'd you mcgregor going to so and so many ways are in syria. we wonder song it you know koreans make people or you know they're smarter you know they're your money it's 3 percent to buy a real asset on leverage so it's a smart move and you know it's it is very similar to twenty's and i think it's

going to go the same way it's going to try let's talk about what's happening recently a company called game stop but it's a listed company the there's a big short position on the stock from hedge funds because they're a dying industry it's a retailer business is down so the short interest is quite high what the robida traders i figured out is that you can put pressure on the hedge funds by engaging what's called a short squeeze if they buy the stock then the short sellers have got to buy the stock also to close out their shorts and the stock was up 100 percent 150 percent it was halted trading 5 times in a single day there was speculation on the downside speculation on the upside remember hertz was bankrupt and it was trading to new highs right so don't the regulators who are concerned about big kohain and opening their pie hole and bleating nonsense should maybe concern about their own backyard i mean there their

markets are a joke it's a farce because they the regulators are in bed with the well you know they're the problem well they're completely exhausted i mean you know let's look at all. saying so $1000000.00 speaking fees only illustrated she's supposed to have been regulating units it's so great that maxim made in that particular case it's shocking to me i mean how is sure shares of her shares available i mean i knowing syria i mean really you know only one of you i was under the understanding she had i was sure to borrow in order to sell it sure met me has a larger short research and then shares outstanding it's all a mystery to me and it's a function of the bubbly crazy environment you know non-working environment we live with me this is just i was around 2000 this is an order of magnitude worse than rats i have a short more stock than there is an existence as a piece of rag shall i believe it's called where at the end of the day this must be a mark to market and an accounting of what shares are where look at the case of numbers figure out who's got what but the regulators down to that they pushed that

they put there they say they're understaffed and they're they can't comply with a lot remember eric holder and obama said bankers are above the law so everybody rasul capable and bomb a function back in office down washington right so we're back say a law is a fair for what i call financial terrorists some people just call them lloyd blankfein friends and there's going to be in the law and so this abuse by regulators will continue and again back to gold for a 2nd so the reason why because it is being gold so badly is because there's no price discovery in gold lawrence it's a better market i mean you know i mean there's there's a you're just very goldman sachs and one point you bristle just the way a reporter you know your contacts are going to go allows that exist and i suspect loads larger and so you know it's not really crass that our staff people like peter schiff ok i understand it's a cold fan and he doesn't like decline but he never mentions the fact that gold is a captured market that doesn't have true price discovery just pass a spec going so it's a same place remarkably intellectual

a you know bereft of any rail analysis here yet is overwhelming and the banks are pleaded guilty to manipulating the market multiple times they've paid. hundreds of millions of i'm just not billions and nothing has been no nobody's going to jail nothing changes for them it's across a big us. i mean they're doing 5 yet is the cost of doing business and the and let's talk about the national debt is not $21.00 trillion dollars which is more than the g.d.p. some economists are saying we need even more debt usually when a debt goes a pot of g.d.p. at that's generally a bad sign lawrence yes very much so i mean if you look at just real countries that have got into a position you know unless they're able to quickly balance their budget which aggressive we're going the exact opposite direction. at least to some of your currency debasement of regulation and to me only question is just going to come how fast is it coming how bad is it inflation is growing or nukes are the alternatives

place very collapse of the thirty's and that a reset that's entirely possible but i don't think they're going to do that what i find most interesting no matter what's going on right now is how trendiest people are they know that it's rather they know they're in a pickle and so you see what are coming out you know you see and memory bitcoin you know say it's right there and you see yellow and you know then you see there's a guy or roast roast off i think it was or the professor car broke off camera guy just rode off army yeah you see all those guys know now and you know they know they're in trouble i mean they know they've got a failing system and you know it's i got a real sense of schadenfreude here i mean you know like they're growing up we're basically you know well you know we know covering this for 1015 years really and calling out names and pointing fingers and it's great to see them squirm it's great to see a ravinia christine legarde the bank of england governor right now squirm squirm in their little bags of co because they know the game has up and to see them go down

is so satisfying because they've done nothing but undermine the economy and cause massive problems so let's go on from here china. right the foreign direct investment into china has passed the u.s. from last year when the u.s. resumed his number one spot after the covenant or are we saying a permanent shift lawrence you know i'm not much so next run china to be honest with you i mean i think that. you know there's got a lot of problems as well. you know i think all the rubble including chinese missile lower to china and i don't know suitable rule last we've got some i'm not a shadow there are no excitable leader and i tend to just look at the whole you know rhesus own money argument and i'm absolutely convinced soundman it we're right so. you know that's what i focus on well one admiral quality about china is when they find dirty bankers they execute a sad this time thing in the u.s.

i would like to say you mention that the car commission after the 929 crash during the 1930 s. many many bankers went to jail during the s. and l. crisis during the 1980 s. many bankers went to jail then suddenly under obama it's like we love terrorism we love terrorism to give them all money give all credit you know and i'm like wait a minute obama you fricken ending it you know want that to happen right but he's like no it's great you know i agree most for obama but when he saw her as a stronger search area we were screwed your point about other countries 30 bankers more harshly and only example iceland when i slowed down the bank when i go out i mean they were you know they were taking a razor or worse and worse and. miserably guys in jail i mean people know what's going on here we're being massively screwed by the financial elite and anybody you can seduce is absolutely wind and you know the only way for them to lose and they will lose is through were able to become worthless investment process about as you know and as i do now christine legarde over there at the c.p.a. talk to my pick as being the escape valves right so this is the way out if anybody

wants to escape the central banking nightmare and this is the air that the u.s. dollar turns 50 no. no paper money has ever survived never an s. train without losing 99 percent of its purchasing power just going out right bust is this year the us dollar goes completely off the wall states goes bust you know it's hard to say i mean certainly alastair and egon think us the case i think it could be the case i'm not smart enough to know exactly how quickly it happens i think i think there's a chance that it happens within a 2 year window pretty quickly because as you know and as i know gresham's law is going to kick in here at some point they're in a lot of trouble right now when gold goes through 212202 the story in between goes through 50 or 60 which it's imminently going to do you know that and then you're going to really see the bond market start to say hey what are we doing here and they're going to look at the fed you know with your group control say so to you here's the whole market and so it's

a balance he's going to go from what 7 trillion to 27 trillion i mean if that's not hyperinflation i've never seen it so in my view you know it could happen very quickly i can't guarantee that though and i course you know i thought i was going to happen in 2009 so what the hell do i know i'm an idiot now but they stank to happen quickly sat with you know a member enron was what 80000000001 day were at 0 the next day you know we have many assets as a starting date 2000 and crisis that suddenly with end a 2 days there was a global credit freeze banks were not lending to each other and short term right so it skyrocketed and it all happened very very quickly because of the leverage right you have got hundreds and hundreds of percentage points of leverage versus g.d.p. you know i want to ask you about the i.m.f. called for a new brand woods what's out all about i don't know much about either i mean i saw that and i don't know what they really mean at all what it indicates to me is that they all know they've got a real problem i mean for those of us on the sound money side to think they're not

game you know gaming this out is is naive i mean there they are trying to think of every possible solution because they're in deep doodoo and obviously bretton woods in a restructuring you know they might figure out. so the least painful way to make sure the religious are you can be sure the financial elite want to maintain the privileges of the place finds all these guys you know there's a way to lose this if the currency becomes worthless we all lose of course that they really lose so right we got to hold yellin for a 2nd segment that's ok lars but thanks for being on this edition of kaiser report thank you rosemary nice to be with you all right that's going to do it for this edition of kaiser report with may backscatter and stacy herbert like to thank our guests lawrence will upper or lower part if you want to contact us placed on tax time by.

join me every thursday on the alex salmond show and i'll be speaking to guests of the world of politics sports business i'm show business i'll see you then. focus is going on the phone lines small why don't they can put them in the moment one of them for appointments you know them better than one so it doesn't tend to get a. lot of fun at all but i did just that they had that. she

really is or was he making a. noise you know you're slam. dunk come back from the sun on my last book you go to the british course they're going up i've been roughed up. i mean we got the war done in the course of the war. if you. take. let's measure that everything that we've learned all the world see it's not right so as we learn more and more because we are learning more and more solid growth now as any good island geologist surrounded by an ocean in this case is the ocean off the unknown of stuff we do not know. and a paradox of learning and this is why the boy did she said yes the island grows.

between what he's known and what i just thought known is also growing. pains are called the vaccination camp. to a halt in parts of the country as supplies run out to question. concerns that apparently those countries didn't purchase vaccines had a higher price than the european union have not experienced such delay. we're not at all satisfied with the current situation for the british prime minister is grilled in parliament over his handling of the pandemic as the death toll soars beyond 100000 the nation braces for him.