imax stars are this is the kaiser and for you remember monopoly it's great to have photos on boardwalk and park place. well we're entering answer big monopoly hey max something that we predicted quite a few years ago is once again coming true and that is that you know as the city's trap happened and as china continues to rise in power that what happens with empires is they tend to influence the behavior of many other countries around the world and we're seeing similar story happening today i believe this is my theory about what's happening in the united states and that's essentially you know we don't have ghost cities like they do in china but we have ghost homes and that is because of a similar situation of too much credit not a great you know environment for investment opportunities for ordinary people and

it's a great way to leverage your way out to vast you know tens of thousands of dollars every year on house price gains so we're seeing something happen over the past year the explosive surge of mortgages for 2nd homes housing bubble math no housing market can produce enough homes when homes are massively used as vacant investment speculations this creates an artificial shortage so what we're seeing and this is from wall street dot com you're going to be interviewing well for sure in the 2nd half so i thought i would give him the honor of us talking about one of his headlines and this so we're going to go over the charts and it shows that there's been an explosion in 2nd mortgages. and 2nd properties essentially so. there's a growth and speculation and enjoyed of course are building those go cities you know in anticipation of growth in their grew into them and they built the gross transportation system and they grew into it. and then here in the u.s.

we're having are these ghost estates ghost houses ghost cities. you have the economy contracts and people are anticipating a collapse in the fear money the u.s. dollar so they're trying to protect against that by putting cash to work in something that they think will move up we see this all the time and in venezuela and other countries that are suffering from hyper inflation there's a mad rush into trying to front run all that money printing and as a way to preserve wealth in the u.s. you have another some very sticky problem and this is true around the world too is that gold and the price of gold is is not allowed to seek its market price right you have the complete breakdown in price discovery so you have houses going up you have to clean obviously going up and other other collectibles going up baseball cards i saw a game boy from the 1980 s.

complete in its sealed package recently auctioned off for $600000.00 that was originally retail for probably less than $20.00 yeah i had one of those i wish i had left on opened now but before i go on while i was reading that headline did you under your boat i had to because it was choking me and i hears. from getting a seizure of often. successfully because at the end of the day i am the consummate professional. well if that's from the 1980 s. again you could sell it along with a gameboy perhaps this is from 1980 s. when i was working on wall street i often wore a bow tie this is vintage 1980 s. bow tie and i have a few of those still hanging in my in my wardrobe and i like to wear them occasionally to bring back that gordon gekko feel well apparently it could be selling for quite a lot but again going back into this story about the surge of mortgages for 2nd homes in. is that we've reported recently on the record margin debt in the stock

markets here is a great way to margin op even harder where you could earn even more especially in places like california or outside new york and stuff like that where house prices are rising rapidly. that total number of. according to wulfric terror is that a share purchased mortgage applications of february for 2nd homes and investment property has soared to 14 point one percent of the total purchased mortgage applications according to data by the mortgage bankers association cited uncharted by the wall street journal so here's the here it is on a chart going back to 2010 as they see a huge explosion and the number of people buying 2nd homes right is like the game and once you have a certain critical number of homes you basically win the game of monopoly and you get that privilege in monopoly from rolling the dice in ways that you land on the desirable homes and you're also drawing from the community bank free money

a lot of times you go around go and you collect $200.00 free you know that's free money that's like universal basic income more modern monetary theory and it just happens to go into the hands of a few who then use their monopoly position to bleed the rest of the players into bankruptcy right there's only one winner in monopoly everyone else especially goes bankrupt there's a 2nd place so that's similar to what's happening in the u.s. people are just using the free money this is a continuing effect of course they're getting monopoly positions in the economy they're bleeding everyone else to death and they're doing so the extreme prejudice are doing so in a way that shows a kind of prejudice that is beyond that that we normally encounter from day to day this is more of a systemic draco nian if this aeration of the middle class by a few one point to make is that this monopoly game. you know keeps everybody at the

table all good participants in the economy and the government is the house really the treasury the fed so to keep the game going they often wipe out huge amounts of debt like the student debt and they look like they're going to wipe that out favoring some players in the game more than others and. you know house price speculators are usually favored over most other people in the economy obviously bankers are number one but if you're going to be in the game of monopoly you know you as a house owner or multiple house owner tend to have more power with your elected officials so especially now if you look at you know if you have commented on the fact that the government basically underwrites almost everything 60 percent of over 50 percent of health care in america is actually paid for by the government medicare medicaid student debt is probably going to be wiped out so all those administrators got to collect hunches of thousands of dollars of salaries per year

as basically glorified government officials now because if the government wipes out all the debt for the student loans them well those administrators of these universities got to be very highly paid government officials now you have with the mortgages and remember u.s. government taxpayer basically underwrites most mortgages through fannie mae and freddie mac. so they're also underwriting these people getting to speculate or willing to speculate on 2nd properties because you know you put down 500018500000 dollar home you could possibly gain 100000 in equity here with the house price gains as everybody gets in on this taxpayer underwrite it speculative scheme so the government has of course been subsidizing these mortgages for 2nd homes and investment properties but fannie and freddie are now beginning to impose restrictions in terms of how many of these mortgages they buy from lenders going forward they will limit these types of mortgages to 7 percent of the dollar amount

of their overall purchases freddie has already imposed the 7 percent limit and fannie has given lenders until june 1st to comply according to f.h.a. officials cited by the wall street journal writes the ecosystem of fraud i guess you could call it because fannie mae. and sallie mae which are government lending into the student market are not true government entities they are private banks and that this is a bailout this is another bailout of the private banking sector is not really a government agency and it's great to have lobbyists that you can go to washington and get laws passed and laws written to allow for the subsidy subsidization subsidies that they should subsidy subsidies dacian subsidization. off your eye care. system they should subsidies that were such.

a fantastic show anyway due to that event you know you've got. a completely under undermining. what we consider to be the rule of law but still it's called at the least a moral moral you know. but i think you know using the game of monopoly is a good way because you know you cheat at monopoly right you're playing with your brothers and sisters and cousins how heated monopoly each of monopoly face to each i like that was the thing is like as soon as your sister had to get up to go to the bathroom he would take a few you know but i got number 2 well in america i know the dice are loaded and if you are certain. you end up getting a better result. right. this is i mean your brothers and sisters are cheating you and you felt like the dice are loaded against you but you know the point is that

with this that. the government is underwriting this thing and in terms of fannie mae and freddie mac. they were government sponsored entities remember that was the big thing in the 2008 crisis triggered by the subprime mortgage meltdown so the government kept on coming out and saying fannie mae and freddie mac. are not backed by the government they're not backed by fred but by the government we we guarantee you this and of course what happened they ended up being backed by the thousands so since 2008 in the meltdown they are mostly because of china again where mimic in china wary of selection of china china own to shoot quantities of fannie mae and freddie mac. bond so they essentially. owned a lot of the mortgages in the united states so we had to step in and i believe in no during that time in order to rescue that relationship and continue china buying our bonds and sponsoring this entity because there was a huge conflict with overseas and yeah in

a way that you know which end up with this this again this insidious relationship between those getting bailed out those taking out the loans those printing the money isn't the government is not and somehow it always ends up in the same result that the top 110th of one percent just going to the bailout continuously rolling bail out every year no one else is getting defrauded and bankrupted no matter how they position or and what language they use are how they construct their ponzi fraud it's all of the result is always the same. so that certain the dice are loaded well in this situation here as street dot com points out of course the housing market the property market is very illiquid when things go wrong as soon as the psychology changes and people don't think they can start flipping these homes and and earning free money it's very hard to offload one home let alone 2 homes so you have all of those taxes the assurance all the costs of maintaining

the property it's a depreciating asset essentially you know it costs so much to maintain so all those costs that once that goes wrong. will probably go horribly wrong right it's a rush motto especially monopoly play with the rush what else every space on the board is just a bigger roach motel and the dice are loaded and it encourages speculation and people are plowing all their feet of paper money and by the way when monopoly came out in the thirty's the game you know the original paper money from beta original game is actually held it's value better than the us $1.80 actually u.s. dollar money ritual monopoly money which is a start simply worthless piece of paper but as a collectible. it's worth more then 10 then the dollars it's supposed to represent so that gives you an idea what happens to money every single $1.00 of history has gone to 0 or lost 99 percent of its purchasing power so we know that the dollar the end the euro. anyway we're going to take

a break when we come back much more coming your way. but i can't. be the 1st one to. produce. a 100 words. that shows

me just because. you think if it was national. i thought. the it. was a shipment to pull from some. of these critics one of the from the middle east because they've been. pushing into life to be smeared. all over the city if you go to. the polls someone. because of the style if you will it's pretty easy.

welcome back to the kaiser report imax keyser time not to go to wall fracture of wall street dot com one of the best market analyst on the web you check him out wolf welcome back my pleasure max all right now the biden ministration just passed a $1.00 trillion dollars package stop planning a $2.00 trillion infrastructure plan another church elements to me less and to wipe out one showing of student debt how's this all going to work out it's going to be ok. if we just passed i have $28.00 trillion dollars. national debt of the united states $28.00 trillion dollars is. i mean that's happened $4.00 trillion dollars from a year ago so now we're looking at another i don't know 5 trillion dollars. a year to to add to this. so far it's been ok you know so far so good.

but it is starting to be a ceasefire and. you know. what are we going to do with it in the future so so far so good means right now we're ok obviously the yields are pretty low the central bank said it's control and that can control it. but. when external and here you know michael burry who did that story about the big short he was the big short they made a movie about it by going start the subprime market in 2008 he's coming out very aggressively suggesting or adding to why mark germany's type of hyper inflation based on all this money printing. what do you think well the signs of inflation are no every we're in there are increasingly bizarre signs of inflation that i haven't seen before with 'd with some really erratic price

increases in different things. you know hyper inflation is. it's empty seats in i don't know that we're headed that way but the massive inflation of a 10 percent even 6 percent would be very disruptive we don't even have to have a 1000 percent inflation you know for this to be a problem with inflation i think the issue is when and how will the said start attacking it and when the fed does start attacking it there will be some major consequences for for the markets are around. you know i did this signs of inflation i just no longer he can or will there just everywhere they're there in the pipeline they're right in front of their building up in services they're building up in manufacturing yeah we have been on the retail side so we no longer can say that inflation is somehow below talking i mean it may be below the fed's

find it because of the inflation measures but you know when he looked at reality it is massive yeah yeah earlier we covered your article about the explosive surge in mortgages for 2nd calmest it would appear that american individuals and. companies are levering out faster than the government is that correct yes i don't know which is faster but the corporate sector is definitely levering out dramatically in. homebuyers this could be institutional homebuyers deller bring out. so there is a leverage now. getting built into. the economy if at all levels we've seen enormous amount of leverage in the stock market so i mean that's what cheap money does. cheap and plentiful money you know he just leveraged and that's the issue you know i asked so let me ask you this. do you have this enormous split between the op or the upper wealthiest and you have

a growing permanent underclass poverty is rising mortality rates are crashing infant mortality is rising and house prices are now up dramatically people can't afford housing they can't afford education they can't afford health care so if you have this barbell approach where you've got the concentration of all that the very top while at the bottom you have. a draining out a kind of a let. a bleeding out of all of the economic activity in the middle class is disappearing. can you therefore say well inflation is running at one or 2 percent because somewhere in the middle between hyper reds the new poverty yeah you can say inflation's i want to 2 percent and they can say that doesn't make any difference as long as you don't consider the fact that you're creating a 150000000 zombies in america the walking dead right i mean that's how they get

that that that inflation number of one to 2 percent they just figure that the zombies forget the zombies at that wanted 2 percent is that how they come to that number. more of the reasons that come up with that number is these days don't include so prices so what they include is a rent factor and that's about 2 thirds or one 3rd of the of the c.p.i. in rents can't go up as much because consumers can't pay for it so their kind of sticky end and home prices have been soaring and not included in in c.p.i. is lots of other reasons why our rent our inflation measures are so i you know i tracked one myself which is which i call back and forth 58 camry price index which tracks the prices of these vehicles going back to the late 1980 s. on a yearly basis and you know how they have grown out pick up trucks have gotten incredibly

expensive and we have a set index for c.p.i. for new vehicles that has barely budged over the last 10 years or 20 years you know as an r.v. has gone up at all so. it was called the dawning price adjustments on quality adjustments and all kinds of other measures to bring down the actual price increases in the vehicles and it was a big purchase you know that's a big budget item that people engage in every few years and they have to sort and it's showing up at the end this year showing up in used vehicles showing up and used in the end and so these price increases down real people get hit with them they're being pushed out of the market. because if those price increases but don't not showing up in our measures or we talk about inflation one of the percent you know it excludes all these so it's not picking them up right so they're not yours they don't include automobile they have the right and the prices are skyrocketing they're not including housing. prices are skyrocketing many would argue myself

being one of them is that the reason to lie a new stuff astri to. talk about one and 2 percent inflation is to keep interest rates low so that when the head fund blows up like we just had last week another huge multi-billion dollar head fund blew up and they just basically were able to quickly a bail them out very very quickly because the cost of money is 0 right so i mean is that why they lie just to bail out these had fun guys is that the reason for the law you think and i think there are systematic reasons that story decades ago to understate c.p.i. including on c.p.i. adjusted. engine plan such as social security and other things you know this is one way. bringing down these cost of living adjustments is to. understate systematically understate c.p.r. and yes. you know. if if you understate inflation you

overstate automatically inflation adjusted g.d.p. and some other things that makes economy look better and so there's lots of reasons for doing staking out autos because you don't have a extensive background in the auto and analyzing a lot of the auto manufacturers are shutting down production at the moment due to a chip shortage i just saw story recently where they're shipping their cars and say we're going to add the chips later so i don't know how that's going to work but that's what they're doing that's another extraordinary event which in normal times of probably cause market turmoil but things just keep going on what's your take on this this image conductor shortages is real and it's a real problem and and one of the drivers behind it is that we have this sudden boom in durable goods sales in the united states now that countries do when people got. blocked from spending money on services such as vacations and cruises and

restaurants and things and they ended up buying durable goods with their their money and they sat at home and they were experienced up to home and they bought new vehicles and and they got the stimulus money isn't always a bank so we have this is story expire in durable goods sales in the united states and nobody expected it manufactures one grave for it so this goes up the supply chain is all kinds of problems in shipping now there it's hard to get a container from asia to the united states because of all the issue is so this is because doctors were just caught right in there and you know the manufacturers have been ordering these chips for for their products in chips and everything then toasters if cars are computers on wheels there is a chip in every little thing in your car in maine even if you opened the if you drunk you know that it was a chip. days so no you know each just missed one little bit chip some more and he

can't finish the car the whole plant has to shut down waiting for this chipchura and this as this is if the car hits a particular hard because you know their pride themselves and just in time in mentor management and they're really tight supply chains and and so when when these things started cropping up nobody in the inventory and and. so nowadays lots of financial downturn really in the united states and japan and in europe because if there's just shortage now we have this is seeping into the lots now with shortages cropping up on beer goals we've all received prices explode on the used vehicle side were we have cost of those roxanne's and so to use dealers so i mean this is riddling now through automotive sector and it's it's pretty crazy have

never seen anything like that right that does this us think this falls under the heading of what's called a cost push inflation am i right yeah so that's our we could even have moderate demand will get inflation because of the issues we have to supply chains you know that's interesting this topic of inflation because there's a lot of. talk about deflation and how it's technology technologically driven our friend jeff both a wrote a book the price of tomorrow talks about deflation and how the no matter how much money printing it goes on we'll never make up for this. trend in technology and so deflation will always be with us but it seems that a some point though the amount of money printing actually kind of breaches over the wall of that the flesh that a trap and and you get rail inflation how do you weigh in on this to me out about 30 seconds how do you how do you see that developing there was a trend with many. actually getting more efficient and being off shortage in

countries and products you know durable goods getting cheaper and better over time you know in the years that may have made it and we were reports coming out of china indicating that that may have ended that china is no longer exporting deflation and that may play into this you know durable goods have just jumped in prices and and that may vs structural permanent change that we're looking at you know i was going to have a 2nd segment ever thanks for this episode of the kaiser report and here i'm not going to die for this edition of the kaiser par with me max kaiser stacy abbott want to thank our guests well for ector of wall street dot com it's a nice time by all. of us assume some of them so moving. and good news was

before. much of those who heard the preview are almost never seen him with the north we will go. move. move. move show you the stupid you are for the police and school collector who are. more muslim also these girls will give you phones for go good girls. don't go to school so look what do you distribute belonging to show the story to actually go. to the top to order from to get through to fill it with the middle of the most dates you look at is a. contest not a chance to just meet the national trail to stop the president on the international committee of.

there's real issues to go through some. of those the. issues shouldn't be you should cook. segregated. people in poverty they 1st. if you're born into a poor family you're born into your own minority family if you're born into a family that only has a single parent that really constrains your life chances people die. in years old if you're going to generational poverty. it's a lot of stuff by every day so you meet your needs and the needs of your family.

going on while it's in this country is an epidemic president biden announces a executive orders to quell gun crime but his moves are preempted by the state of arizona which has already taken steps to block the reform. european court of human rights rules that it's legal for countries to force vaccines on children in a case that raised fears of compulsory covert shelves. and the european medicines agency sticks to its line that the benefits of the astra zeneca coby job outweigh the risks but the regulator says blood clot should now be listed as a very rare side effect of the drug.