hi i'm max kaiser this is the kaiser report i wonder what we're going to talk about today let's find out talk with stacey stacey what are we talking about today well we're talking about ponzi schemes because there's been a big ponzi scheme that was. you know unveiled last week in america out of hollywood of all places and so i'm just looking at the psychology of this and how ponzi schemes continue to operate whether on an individual scale or all the way up to the central bank level and here was the 1st tweet i saw in my stream the day that this broke last week mid week and is blowing my mind that this quad say

rand was able to raise 2 $127000000.00 from investors for a scam production company when there are literally hundreds of real indie producers struggling to get real movies made how are investors this stupid this was an actor called zack avery 34 who was arrested last week and in fact the ponzi scheme was 690000000 but he managed to you know he was paying off previous investors with new investors so he managed to get away with 227000000 that he failed to pay back but if you look at that headline of like here's this ponzi guy how did you raise 690000000 when real production companies with real products. don't get made just like in our economy where real manufacturers we're real wealth producers real content creators like they get they don't get anywhere whereas those who are fictional fake pushing a dream you know have no actual income stream 0 revenue in fact huge losses

those get valued more right so we're going to explore that well you know reading for that digital singularity yes you mentioned that before and so this is a good example of it because why you know the idea of meatspace where you go and hire actors and shoot films and then edit the films it takes a lot of time there's development costs of these producers editors there's all kinds of support there's craft services that kind of feed people right and that's all from the 20th century 19th century where in the ditch at all events arise and has been crossed and people understand that when the digital world you don't need any of that meets based stuff you don't need anything analog it's all digital so having a digital representation of a fantastical nonexistent movie production soul to nonexistent viewers on a nonexistent area of planet or area 51 is perfectly fine in the minds of many

and so hundreds of millions of dollars are raised on lost but remember all money that's lost whether it's a fantastical ponzi scheme film sales company or that hedge fund that just blew up that crack to go this arc ago remember that the central banks will immediately replace the cash immediately with no questions asked right because they are cost of capital 0 and they consider everything systemically important whether say ponzi scheme in hollywood or a hedge fund arctic coca-cola it doesn't make any difference they're all systemically important in the minds of the fia money printers and people understand this and they may have lost everything in this process game but they might make it all back in another ponzi scheme does nothing that's not a ponzi scheme partly because the individual has a very. amazing. imagination that's what humans are blessed with but also cursed with they you know if you actually see the the drudgery of producing sausages or producing hollywood films or manufacturing cars you know that's why automobile

manufacturers who actually produce like tens of millions of cars here are valued at way less than those who don't produce that many cars a year it's like the imagination of what could possibly happen now in this case the headline and the daily mail read d. list actors ak every $34.00 is arrested for masterminding $690000000.00 hollywood ponzi scheme and forging netflix and h.b.o. licensing deals to fool investors so his his ponzi scheme was exactly what i used to do for years work in film sales and he claimed that humanise are a $690000000.00 for alleged film sales that he was doing just the latin america which was our tiniest market we did film sells outside of the u.s. so the whole world outside the us latin america was like the entire region you sold the film project to all of latin america in one deal and set of say like you don't sell it to all of europe you sell it to france germany spain you know all the countries so. that's the tiniest market of the malek it's

a puny markets hardly any money so how anybody thought there is anything in hollywood that could make $690000000.00 and latin america but you also need like huge debts like that's that's why our company ended up like after 1520 years gone bankrupt because you get a lot of money upfront they keep on having to service the film for years and years and years with promotional materials recording box office chasing various distributors for the money that they're owed and blah blah blah so it's a huge amount of cost so like the people who got defrauded from this were not individual like ordinary investors they were hedge funds and something that you would think would do due diligence right now in this environment the more. a fraudulent something sounds the easier it is to sell and the more the higher the possibility of making a quick buck is so the standard now for an investment is how fraudulent it sounds and how fraudulent it is most of us funds engage in wholesale fraud you know like

warren buffett's a famous guy for making investments but he got bailed out several times because he is engaged in illicit activities so the more illicit the more fraudulent something is the greater it is the easier it is to attract capital if you have an actual business like you're a girl scout selling girl scout cookies you know you're going to get thrown into the you know the bin of a trash bin because who wants to actually engage in something that's real for somebody who's real that might have a real future but if you can throw money away a fantastical nonexistent nonsensical ponzi scheme in a heartbeat you'll do it because there's a chance that that will make a great profit and you can just invest in 20 or 30 of them one of them is going to hit and you know we've often talked about how the entire. beast debt based global economy is based on the ponzi scheme nice can see it in that sort of behavior as you mention that any any company with real cost of producing their product they get really penalized and that's

a khana me because who wants labor cost or parts cost like anything it the more fictional your your business model is the more it's the easier it is to raise capital but it's also like the the whole structure of the scheme so here he managed to pay off like over $300000000.00 to previous investors by taking and new money and many say that's how our whole system is based whether it's social security or indeed the entire bond market right since the 198-1981 interest rates have been declining for 40 over 40 years so you have the rolling over new investors paying off old investors and then you're out the points where. like as all these schemes on unravel you have to either about create these fake letters from netflix and h.b.o. which is what this guy this delist actor is ak every he was when when his investors

were complaining why he wasn't paying them their monthly payment he he said oh you know he could and he fabricated letter saying that they were the ones that h.b.o. and netflix were slow in paying him like how they didn't know this that he did these products weren't being distributed in latin america i don't know they noticed it that's what made it appealing because it's obviously a fraud so there's no films there there's no letters in the case the bond market there are no bonds that sort of negative interest rate is the no bonds there now we've got a multi-billion dollar n.f.c. market non fungible token market in the so-called art market where there's no art there is no original art there's only copies which can be copied and incidentally with absolute fidelity so there's no original art then there's only copies of the art and there's no original art but now it's a multi-billion dollar industry obviously a ponzi scheme obviously a fraud but now it's multi-billion dollar industry as is this ponzi scheme as is the bond market as is the fear of money it have to greed possible investment opportunities on the level of potential fraud if it's very very high then it's

a must do if there's actual people involved with real jobs making real stuff stay away because the possibility of doing anything profitable is 0 the only exception being because it's kind of calling time on this whole thing and that's why it's so high in price but you know more on that later right and they equivalent and the fear out debt bond world. of fabricating these letters of proof of like somebody owes you money is the fed buying the treasuries so quantitative easing like buying up all the debt it's like that's like fabricating. like demand like there's no actual demand for any of this that just like freeze dried water just add water. and then after don fungible token it's art just at the art. here's a token for $100000.00 all you need is the art to go with it but you've got the token just you don't have the art just at art it's freeze dried art it's freeze

dried bonds it's freeze dry productivity it's freeze dried money it's sold as if it's something in a can they just need to add what it is that the says it is yeah again the ponzi like nature of it is long as people continue to believe it and you can keep on finding new investors that's you know whatever you can keep it going and when the fed chair person comes out and does their fed speak you know that is a fabricated letter as well that's a fake letter they're telling you everything is ok keep buying we need new investors to roll over this threat but are these people making an investment if the cost of their investment is ill because that's the interest rate fed is offering it can you really call that investment if you say i'm going to buy a non fungible token for $60000000.00 with the money i borrow from the central bank the cost me nothing is i really an investment or is it money laundering or what is it exactly other than a ponzi scheme and i ask what it is yeah i think it's

a ponzi scheme i'm not sure i like how many people it's like but people they keep on being able to flip it you keep on being able to rule over your bond there is always for 40 years there has been a new chump to come along so at a certain point you forget where it came from that it's not real and you feel like it's real it feels it feels like there's demand allegedly so you feel like you know maybe this is all great like the say these hedge funds probably would have kept on rolling over this debt and giving this guy more money as long as they kept paying the interest every month and kept you know making principal payments as well then it's like they don't ask question ok so wise bernie made off in jail well because because once it stops like that's the problem if if if the central banks can't keep the scheme going if if they if people totally lose faith in it like. for example you mentioned the 30 year green greece just sold some bonds at a lower interest rate than america is able to get right now but it's about

a much better credit than united states they've got tons of olives and they've got more all of the grapes then and america combined all 50 states have the same number of all of that they have a growth that's why they're able to borrow money cheaper than united states of america grace makes sense well me again this this fictional if it's all in your brain if it's all your mind if you just imagine that greece might not go declare bankruptcy well. what. does it mean. i do i do oh. 2 what a clownfish that woman needs to be seriously reeducated about how economies work or she needs to be sent to all of picking plantation in greece we're going to take

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in a world transformed. what will make you feel safe. tyson nation community. are you going the right way or you. want to strike forces. in the world corrupted you need to descend. to join us in the death. or remain in the shallows. while come back to the kaiser report i'm max keiser time out to go to our conversation with rick ackerman of rick ackerman dot com he's

a former market maker and he's also a stock picker and newsletter publisher rick walker back thanks for having me one max all righty wreckless kept from finish up what we were talking about inflation versus deflation we've been talking about this for a few years i think the brakes are from me on this conversation listening to you again and you've been right about this now for years for a lot of other people have been wrong in that you've been really saying the dominant theme here is the flame. is the fact that and we'll touch on it now again you say ok it's one thing to reflate stocks and to boost stocks and to buy bonds but when the pension system starts to collapse like you're saying in illinois and presumably that will spread to other states that's a that's a deflation and all of a whole nother magnitude can you can you pick up on that and talk a little on it. sure i think you need to look at deflation as a process by which many many zeros are going to disappear from the ledger you know

anybody who's 0 dollars is not going to get paid those dollars and of course there's a whole sort of daisy chain there of other people get paid once you get paid so those zeros will be wiped off the books much more quickly than the fed could conceivably replace them and i often go back to the why more hyperinflation of 921-2223 as an example it was a completely different kind of inflation in that the german government was literally sending out box cars filled with money so that the employers would not have riots on their hands when payday came and they couldn't pay their workers so so that you can toss out there why more hyperinflation and also the fact that it was hyperinflation in a local currency rather than in a global reserve such as the dollar so so the dollar edifice as it were is so

huge that it cannot possibly be back up when it reaches that critical threshold of implosion. all right so in a talking about the debts the fall faster than the money can be printed i mean you're talking about debts default many say disappearing zeros they're saying that pension funds well simply default they have they won't pay they go bankrupt and in their interest in response to that there won't be enough money printing to fill the gap in a lap and i would imagine that once that gets going it happens with a great speed for one thing and there's a compression of the crisis instead of a rolling default that we've had for 20 or 30 years there's i guess do you see a capitulation at some point where people realize that you know what this is the end none of us going to get paid let's just a fault and it's a different phase of the crisis rick i think that's it's going to happen so quickly really that people have to acknowledge it in the way that you just you just said

you know with respect to illinois. we're talking about literal had helicopter money to kind of counteract that it would require the federal government to say to to to send out pension checks to $2600000.00 let's say illinois retirees the checks would vary in size from $500.00 to $2500.00 a month perhaps so obviously when they start doing that new york california connecticut and 20 other states are going to come there with their hands out looking for the same bailout and you can understand that it can't go very far because of the federal government gets into that area bailing out. with literal helicopter money. it it would be it would be a height that would be a hyperinflation and of course the own oil guy who gets $2000.00 check that check won't even buy a bag of groceries if the government is bailing out everyone else and also keep in

mind whenever i use the word government in terms of the government's going to do this it's going to bail this out a bill that out i think you have to substitute the word taxpayer. to understand that that that the money or at least the promise of money has to come from somewhere so what do you call it when you see prices they're saying cost push right in place and you know prices the stuff are going up the commodities are going up prices are going up health and education and. other costs are are are moving up some people are feeling that the vet purchasing power of their dollars are decreasing so what do you call that that's how do you position that within an influence within a deflationary picture right now how do you what do you call those costs that are going up the people not because they're not there in purchasing power for the dollars not going up so that they're not feeling the deflation right there fail in inflation how do they manage to get to the worst things going simultaneously.

well you know the people who forgives the inflation side have. and cheating for years and years and years by not see is not specifying what kind of inflation we're talking about in may they kind of want you to believe that it's in 1970 s. inflation which was i think you could call that an organic inflation it was a wage push inflation the wage earner was never quite catching up with increasing prices but it did have its as its basis higher and higher paychecks and that in part drove inflation but we're not really talking about that at all the e.q. see where the 1970 s. inflation could just keep going and going and going and going in fact it did until it met paul volcker but in this case it's not that kind of inflation at all it's really just an asset inflation with let's say moderate inflation in the lead

a spend you know a grocery bill and fuel and things like that but you can see where we're the things that are most inflated are not sort of going and going and going and keep on going they are in bubbles that could implode and that is pure deflation so so we don't have anything like the 1970 s. inflation we've essentially got an asset bubble. in the 70s you had wage inflation and this was still in there and their. labor when you had the ability to organize wages and that was of course was dismantled by ronald reagan right now we don't have waves pressers anymore particularly since we outsourced all our jobs overseas to asia to china in particular so what you're saying is that within this deflationary big picture you've got asset bubbles so these are bubbles that when they pop will add to the deflationary pressure and i guess what you're saying now let's talk about something here well again we've been talking about it for years

let's revisit that and that would be a gold according to. your latest comments at rick ackerman dot com which is an excellent website by the way i've been visiting it for years in end. i think you're in the camp of it's so hated at this point at that as a contrarian play he might see some juice here or what rick is that what's going on . well i'm recommending a what i would call a barbell strategy on his parishioners a friend of mine a financial advisor in boulder named doug banfield he's done very well by his clients since the 1977 since the eighty's by sticking with bonds and he's had phenomenal years you know a little bit a decrease in interest rates so on a short end of the curve gives you enormous capital gains if you're out there 102030 years in bonds so i like gold versus bonds right now is a barbell everybody hates them both you know bonds that are in such

a. horrific bear market yet it's hard to see the end of it with the federal government talking about $2.00 trillion dollars you know 2 trillion dollar stimulus packages and things like that so i really like gold and bond bonds and i think if you sort of extrapolate the logic of the deflation or even a hyper inflation you're going to do just fine in one of the other i think you're going to do well in both of those investments right yeah that you couldn't pick it to. last attractive less favored investments right now and of course that is the key in many times and finding winning opportunities because you have to go and really where the crowd is not right so the crowd is 11 point and so the idea being that any gains have been picked over pretty good because the crowds been there for a while and they've certainly hit into the tech stocks have had a terrific run in terms of tesla what is really a poster child for for tech stocks now for a few years you know you have an opinion on it off and on for

a few years it's around $700.00 post split at the at the moment any thoughts on attack as a sector and tesla and protecting the rock. it's really crazy you know if you start thinking of valuations food these these stocks even the most optimistic ideas about musk and tesla and what they're capable of with with the satellite communication system and and you know we'll let tronic electric cars the expansion of moorcock is optimistic issue could be tesla still overpriced i think and the same could be said of all of the fang stocks you know that they have crazy valuations because once the portfolio managers get get stuck going to theme they just keep going with it and go on with it until they beat it to death right now i remember when i started on wall street in the early days people were still talking about the nifty 50 back i guess

on the 60 that was a basket of stocks including xerox and polaroid and names that were capturing people's imagination then we had the dot com bubble burst spectacularly in 2001 and these are definitely areas that that attract bubble like valuations but in the case of. you know he's working on that neural link project or a stopping directly in their brain it could be a new phase of propaganda where people don't mind so much to know what's happening in the inflationary or deflationary world because they're in must land living on a virtual reality farm. in oh it's that they cover that record is that not in your belly wink. no i mean we don't know back for sure whether we're not already getting things beamed into our heads right now to make a stew the crazy things that we do but i think musk is great but but you know even he has limits yeah sure enough and so so he got this barbell approach of the

portfolio and your macro theme about time of knocking zeros off the bond market and going into why spread to fault that it won't be like why mar republic because they won't be able to get the cash out there fast enough but they are coming out with central bank dental currencies and they're going to see the same ing lee change the way the central banks interact with the public and they could actually be doing helicopter monley directly into people's wallets into their crypto wallets into their digital wallets with that to give them the ability to do the helicopter money fast enough to counterbalance the implosion in the economy rick. i think the opposite would be true when people see the debt capability to inflate everybody's bank account adding a couple zeros to your checking your savings but when they see that capability exists in the fed's actually using it then i'd have to admit you probably be on

a hyperinflation course hyperinflation being kind of a state of the mind where you think i'd better just buy stuff here because this money is not going to be worth anything in a week right this chinese central bank digital currency is talking about piping money into people's wallets that has an expiration date like frequent flier miles that simply go bad if you don't spend them rick we gotta go thanks for time thanks ray i kaiser report thank you max always a pleasure and that's going to definite is this enough kaiser report with me max kaiser states there are like to thank our guest right back around to rick ackerman dot com check it out and so next time buy a. the industry prefers to spend millions of you know the. nation's

business is all about making money making profits in some of the corporations international markets import export do you imagine the number of chronic diseases that are in every family it is not due to new viruses all new microbes that's not true so it is due to environment. to simply. really. come in to see them to be. deployed to see the sky if the so food industry is successful it will create more jobs it will create more value added it will create more growth so i don't see why we shouldn't also fight for the interest something into st oh except that we have regulation we want regulation i was in just belief we don't behave any aspinall to just find. out.

what's needed national you know when the ability to muster that solicit it. regular morgue or your own or your partner are going to provide. odd law oh. ya bush or strike you all but us lucifer mr delicious that. is not my achievement mr davies our 5 year plans were conceived. and carried out by the people themselves if how they would produce or even flirted with the idea of making a film like this they'd probably be branded as crazy. that was the sentiment during the war the soviets were brave heroes resisting the nazis that's going to. and of course after the war once the cold war begins. i.

think that hollywood is a free. this is strictly defined by the business and the other side is. how would i define hollywood is they call it the dream manufacturer which are things true but i think equally it's a problem in the fact. there's been a force nights of unrest in minnesota where anger over the killing of dante ride by police shows no sign of easing off. its motto is that it is the most trusted media outlets but secretly film revelations by a c.n.n. director admitting the channel is spreading propaganda for the network slogan into question. one and

a half 1000000 french citizens are getting an unfair share of the country's vaccines.