you keep on saying because you know a lot of the headlines in the news today are reflecting what we've been warning about are saying or predicting might happen over the past 10 years well this is from the washington post and their editorial board wrote this equations boom won't defer on the dollar but that doesn't mean there's no danger really really 0 won't affair on the dollar they say. like a 1st there's a few paragraphs of just really old fog that you and i have already experienced many times oh yeah they're getting nervous and you know it for these types of editorials to appear marks the beginning of a new phase where the folks that are in charge the elites now as they're called are starting to wake up to the fact that the world order that they've grown up with is being challenged by a threat to rex threat to the u.s. dollar and of course i like the way the statoil sets up by warning people at the beginning of it don't worry that dollars safe and then they go on to say well

actually it might not be that safe then i expect to see the same editorial written in all the liberal elite media outlets in the united states and around the world because remember because it is taking down the fia world globally and it's supported to remember the exorbitant privilege of the u.s. dollar is only an exorbitant privilege for a very small percentage of the population the vast majority of the population do not benefit do not gain any privilege from the u.s. dollar as a reserve currency in fact they lose that's why you have mass dnd just realization across america is exactly because of the u.s. dollar as a reserve currency so most people don't benefit from it but here the elite sense they are about to lose their exorbitant privilege and i'm going to read 2 paragraphs that you'll see see clearly they're very very worried and almost begging janet yellen at this point the last bastion between you know the fed's already destroyed the dollar and now they're. like hoping that janet yellen can do

something so in public policy terms the best reason to focus on big coins rises what it tells us about the risks that may be bubbling up amid the federal reserve's commitment to 0 interest rates the justified purpose of that policy and acted due to the coded $1000.00 outbreak was to counteract economic collapse by encouraging investors to risk their money on job creating activity. rather than park it in government bonds given limited opportunities for productive investment though many have chased yield through speculative vehicles because very much included of course there's been no investment in jobs for decades that's an absurd thing like that you anybody in the elites can sit there and think well if it only cut interest rates and will have more jobs people produce more and you know invest more in the economy and like when have they ever done that in the last 2530 years they haven't nodded

off and this idea that 0 rates appear to fight the cove it is also fallacious this ill rates have been in play for more than 20 years the greenspan put which is the equivalent of a 0 percent interest rates went into effect in the 1980 s. under reagan and the express purpose is to as you point out a very small minority of the exorbitant privilege of having the world reserve currency u.s. dollar benefit benefit by 0 rates and they have for decades so that article is replete with misstatements and obfuscation right and of course you know we've covered before that china itself doesn't want to reserve currency they're happy for the united states to do this because it's they know. it's easy for the elite to sell out the mass for this but it destabilizes this

society and that's why china doesn't want to have the reserve currency not that they even could buy who knows but right now like we are in a quagmire we are in a global quagmire and that's why we keep on referring to the fact that the i.m.f. itself is the one that called for a new brand woods so here however the elites with the exorbitant privilege all of the privilege of the economy and clued in the exorbitant privilege they go on to say for some in fact it would be crazy not to hedge against 0 rates which are actually less than 0 when adjusted for inflation tesla basilan musk was quite candid about this quote when he had currency has negative real interest he tweeted only a fool wouldn't look elsewhere and mr musk whatever else might be said about him is no fool nor is treasury secretary janet yellen which is why she pledged on friday to keep a close eye on big queen and other speculative phenomena we urged her and other regulators heed what these markets reveal about the war real world consequences of

current monetary and fiscal policy positive and negative intended and unintended so they're picking up exactly what we had said only a few weeks ago in kaiser report the big queen is revealing the truth of the situation all around us you know all the most participants in this economy gets fed speak right which tries to obfuscate and of course the fed speak is intended to keep animal spirits alive and just keep consuming keep buying so this is revealing the true state and that's that's what people are concerned about who are in the exorbitant privileged class right wave christine legarde mean what you said is offering an escape valve yes right so what musk is doing is a scaping these negative interest rates the 0 percent interest rates. by buying because the same thing as michael saylor who kicked off a trend in the c.e.o.

suites of corporate america and the fact is as we've been saying now for 10 years or more that capital will always flow to where it gets the best return. that's a law of nature just like the sun rises in the east capitol will go where it's treated best what we have the last 25 years or so is collusion on the global central bank level who kept interest rates low and offer no competing rates anywhere else in the world and nomi prins writes about this in her brilliant book collusion but because he came around and offered that escape valve and now there's no putting the genie back in the bottle now there's a way out of the collusion and the 0 percent interest rates and what became what started as a trickle is becoming a torrent it's becoming a tsunami moving into because and i think it will for society as a whole get better once this is unleashed because of the gaslighting that happens

where europe whereby you're told that there is no inflation it's all in your head that's that's a really negative consequence to individuals families communities cities the entire nation state it's telling you that what you see in front of your face what you experience all around you every day is not real that's so that's the definition of gaslighting it's to undermine your faith in the system around you so where did the where did the loss of faith come from but who is the one that cost that you know it's this sort of fed speak maybe their intentions were fine they were trying to make sure everybody didn't panic and there was no irrational fear and they were so they kept on over stoking the exuberance and math the only thing that they felt good with and you know so eventually you end up in the situation where there is it's all dishonesty and nobody even the people at the top don't know

what is the honest truth and you can see that in that editorial from the washington post is there starting to doubt is like are we really not benevolent deployers of this exorbitant privilege don't. we care about the people don't let you know they're starting to doubt their own reality right that's charlie munger the partner of warren buffett said show me the incentive i'll show you the outcome so when it comes to was a paradigm or was it purposefully done to ratchet late down to 0 percent fact is it does benefits use corporations fantastically he used all the cheap money to buy back their own stock in a war themselves executive stock options that were guaranteed to increase 510-2030 x. and that's where all the wealth in america has come from gaming the system and now it's time to put toys back into the toy chest and let markets do what they do well you know who saw the last. break in the matrix of the financial system and the

exposure of a flaw in it where he can make money the big short michael burry so he's back and of course signaling something in his tweets that is the underlying cause of this and what everybody is starting to sense just like any collective of people group of people mass group of people we all sense what's coming and he was talking about hyperinflation and why my germany everybody is talking about weimar lately and that's because everybody sense census exactly what happened in terms of a great power loosing control of their monetary value and he points out that in particular in general say that like the sudden collapse the hyperinflation moment happened just as max and i have said several times out of the past few years it happened suddenly but it's happening slowly 1st he points out he catalogs that it was in fact going on for 9 years before a sudden collapse so it and everybody there are quite

a few people that seem just like remember last year 2020 and america all those billionaires how much money they made like enormous amounts that's exactly what you saw and why marcher me leading up to that short brief hyper. inflationary moment i'll read you one of his tweets here the life of the inflation and its ripening stage was a paradox which had its own unmistakable characteristics one was the great wealth at least of those favored by the boom many great fortunes spring out overnights the cities however had an aimless and wanton youth prices in germany were steady and both business and the stock market were booming the exchange rate of the market against the dollar and other currencies actually rose for a time and the mark was momentarily the strongest currency in the world and inflation's eve great if this is of sense why marjorie there's been

a lot of work done in what's called chaos theory and systems analysis so in the ideas which snowflake starts the avalanche in other words the avalanche is already the energy of the avalanche is stored on the side of the mountain. when all i need is one snowflake to release that catastrophic energy so here you have the energy of hyperinflation is already stored in the system it's already there in the form of the fed's balance sheet they've got trillions and trillions and trillions of paper that is going to come out in a flood and suddenly this will happen globally and suddenly purchasing power and confidence in the currency collapses and you have a hyper inflation and here is his final conclusion to this and what he's saying is 2010 to 2021 is exactly the same period so he's saying throughout these years the structure was quietly building itself for the blow as he said the side of the mountain building up the snow germany's inflation cycle ran and not for

a year but for 9 years representing 8 years of gestation and only one year of collapse written in 1974 this book that he's cataloguing arre 1914 to 1923 was there hyper there inflation and then hyperinflation period and for america 2010 to 2021 is the gestation so just like we've predicted 2021 is in accordance with this that his analogy is right this is the blow up here and we predicted that it might not last the dollar might not hit 50 years old which is august of 2021 think about this stacy what if equation is not the bubble but the pin. well we're back after this don't go away. it's been decades since the fall of spain's fascist regime but old wounds still haven't healed. in the times when you and. me from

a dog. me coffee to market economies above all to me on the bus at us as mean older than us and that's important to you know cells and have newborn babies were torn from their mothers and given away and forced adoption only. for feaster my own role as a fellow mentor to this day mothers still search for grown children while adults look in hope for their birth parents. is your media 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

led. away. what is true what is faith. in a world corrupted you need to descend. to join us in the depths. or remain in the shallows. the british and american governments have often been accused of destroying lives in their own interest or you see in this these techniques is the state devising methods to him to essentially destroy the personality of an individual. by scientists. this is how one doctor's theories were allegedly used in psychological warfare against prisoners deemed a danger to the state that was the foundation the method of psychological interrogation psychological torture of the cia disseminated within the u.s.

intelligence community and warm water among our allies for the next 30 years until now the victims say they still live with the consequences today. welcome back to the kaiser report i'm ask eyes are time out go to mark valid incremental already mark welcome back they mix all right janet yellen said the u.s. government did not spend enough last year to counteract the downturn however money supply did increase by 25 percent 2020 how much money printing is going to offset

this some plotting ponzi scheme mark who well if i knew that well so janet yellen was put into the position of. father's minister of the united states it's called secretary of state the president's top fused this is quite a symbolic. act i think because she uses for well head office ceteris she she knows i guess that this point has to be sustained and she's almost you know full fledged keynesian now she's in the position to do. politics which actually are needed to keep this going and totally agree with your implied question this system needs more spending otherwise it will implode and i guess it's more i don't know if we need 4 trillion this year and no

deficit so would it be rather 5 to 6 trillion i would guess it would be some way of the syria right but the other tragedy here is that the same so equate money printing with somehow managing this catastrophe and doesn't seem to understand that the money printing cost the catastrophe chase aims to have some circuitry in her mind that were there as secretary of the treasury and operable malfunctioning she's now functioning as a government bureaucrat and misses and we have a president who also seems to mouth function. in their head you know legendary had fund investor stan druckenmiller says he is now very very short the us dollar so he hears a janet yellen says and he thinks he's going to go very very short the us dollar he cites the money supply growth as the reason does the dollar survive to see its 50th birthday this august mark it's coming up yeah pretty soon i guess it will

survive it's though. question is going forward what kind of form will it take and will it. be less and less important than internationalist speeches reserve currency for which i would say will be around for me as a medium of exchange and in the shorts and perhaps in the medium term to 0 as you bring up frequently bring up the relative points that 'd people are more and more questioning the status quo and and also questioning the dollar as reserve s. it and i think. this is going to be very important in this day kate people are talking about we're entering into a why mar germany like period of hyperinflationary collapse for the u.s. dollar and other after and sees over there lichtenstein a mere stone's throw from germany. and you are an academic a scholar

a monetary historian a gold expert a big coin expert. is this are these worries unfounded or do we see the beginning of this type of y. mar republic like hyper inflationary collapse mark well i've said last time i was on your show that i'm definitely in the inflationary camp and sticking to the coal i think since summer when will show was when i was in the . nikkei this. morning to keep this point to the scenario for the i 'd mean just look at the commodity prices that are rising look at all kind of different financial indicate this phone won't you get a rising. so i think we're getting close into a inflationary scenario but hyperinflation i think still is this is a few steps away since i put into nation requires quite quite

a few things. at the same time basically. hyperinflation in germany was a very very extreme case i wouldn't root something like that out in the long term effects even in the medium term but in the short term i think we are still far away from from such an extreme scenario well one similarity the paper points as during that weimer republic days there were just because the currency was collapsing and there was speculation in the stock markets in the stock market went ballistic obviously gold 'd went from one to one ratio against the the rice market the deutsche mark at that time it ended up having to a trillion to one so that people who are owning gold certainly were protecting themselves but there seems to be a mad dash in speculative for fervor and things like stocks and and property and the. and this is how people are sensing it is

a true mark that hyper inflationary collapses really loss of confidence and the and the currency that's what it's really not a economic phenomenon some. people just lose confidence in the money and they're like you know what this money is not worth anything and they try to get rid of it as fast as they possibly can isn't this rally in the stock market kind of pointing to this or speculative fervor people are this stocks are certainly inflating at a rate that would suggest that people have lost confidence in the u.s. dollar mark you're right and the great movement from isa's coked excepted this phenomenon cutlass to the most in the horse kind of catastrophe food market and i think in that sense we are seeing some some kind of indications that this is going on i don't know how foolish mr really is in art i think he sensing things what you mention the. purchasing power in dollars in the

oak to your currency is definitely is is a big factor when it comes to investing it doesn't even matter if one decides to put one's capital into bitcoin goals or equities for that matter but i think people are really aware of the fact that the purchasing power is melting and so that they have to do something if they have some savings and i think to debt extent we are seeing some kind of couple still in force one could argue that agree in oh another interesting parallel if you go back to the preceding the weimer republic you know you had the best sites treaty and the reparations that were applied to germany that were onerous and draco in and set up a train of events that were catastrophic you know we have something somewhere in america in 2008 obama forced the public to pay reparations to wall street to pay reparations to ben bernanke considered our capital and can griffith

and alos had funds and they. we the taxpayer had to pay the $1516.00 trillion dollars in reparations after the 2000 a crisis that was caused by the very same hedge funds is that a fair analogy in your mind. well it may be in fact it's perhaps a little bit of a stretch but yeah the system requires more more theft and i also think that keynesianism basically is. tries to. pet you hate this this does this based monetary system i think it's the function well kane's perhaps implicitly realized that 'd one needs of the system needs more and more debt and that's what these people are doing loading up on. public debt and they're also trying to incentive to incentivize the public and also the corporations to take on

more more steps because if they wouldn't do that as you mentioned the beginning this whole. that scheme would implode so 'd so we're really trying to to to to keep it going as long as possible at the end of there will probably see some kind of a rehabilitation in. various real asset prices it can or is that it is already in on the forefront of this. i think it was because you have some kind of monetary zation factors but also gold and real commodities will have to. reprice relative to this whole fear that money amount to nami which is being printed so i stuck about gold it had a new line 2020 but i spend choppy ever sence kind of fell back despite all the money printing despite all the lock downs what's going on with gold what's what sirrah forecasts for 2021. correct we're their all time high some are 2000 or

2020 and since then we are actually moving lower consolidating i think wintering and quite an interesting phase of the cycle because the gold is quite sensitive to youths especially real yields but nominal results were drifting slowly drifting higher since mid to 20 twentieth's. generally the expectation is that since hopefully the coal requires is being somewhat under control in the near to medium future that this economy rufe back i think this is perhaps similar 220132014 where actually the gold price. fell because of the channel expectation that the economy will be back on track. the

fed back then worst able to pull a rabbit out of the hat and was able to curious people that there will slow 'd the stop the money printing and eventually or some normalize policy and we will face that point i think pretty. the soon when the fed also again has to has to show their cards. that i think it will be very interesting to see if they were be able to men effect another bluff because at the end of the day last month it was a bluff they weren't able to mount normalize. the rule have to try to to commence their midst meant community that they are doing something i think but it's very very difficult because the action really counts because of that that situation so let's see what kind of rabbit that will try to brew of of the at this time well why did gold investors even listen to the fed you know the picket lumber

had a new all time high in a 1000 coppers screaming to the upside oil's birmingham they don't they don't seem to look at what the fed's doing they they just hide because they know inflation is going well i think the traditional gold investors do not listen to the said because they are convinced they don't need to be coincident in moss well i think the marginal side of gold is actually probably the institutional investor in the united states still in the east people to my knowledge are not very highly allocated to gold as still and investors so so i think these nice investors need to be basically loose to confidence and so far they have not i mean sampan here marcus right time apologies for a 2nd segment diceman i kaiser report welcome looking forward and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert want to thank our guest mark baloch of incremental until next time by al.

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