30000 troops and 16 nations nato starts its largest military exercise in decades with the alliance claiming the drills in albania are transparent and defensive. tempers are fray in the waters off jersey with britain sending in its navy has a dispute over fishing rights with france boils over. and parents in the u.k. are sounding the alarm about their government's approach to long. on the way in about 60 minutes time right now though it is time for the kaiser stay with us.

this is the kaiser report well you know of the whale is turning her back to where we were 100 years ago let's find out more from stacey max it has dawned on me that the roaring twenty's are back yes history is actually seemingly repeating itself in fact not just rhyming so you know incomes are up 21 percent since last march and up 33 percent from 21000. consumer spending highest ever stock markets all time highs and let's 1st look at charlie monger he's a partner with warren buffett over at berkshire hathaway and of course is from the 1920 s. he was born in 1924 so he will remember as a little child baby flapper you know that the wrong twenty's charlie monger on

bitcoin today quote i should say modestly that i think the whole them development is disgusting and contrary to the interests of civilization she owns banks that launder billions per year and have been charged criminally give me a break says ethen he promptly on 0 right right path makes a get out survey should there you know 75 percent of the berkshire hathaway portfolio he break it down is banks and the banks are the 1st in line from the central banks to get all the bailout money member berkshire hathaway's been bailed out twice without those bailouts they would have been bankrupt long ago they're under performing even with the bailouts they're still underperforming the s. and p. and nasdaq for more than 10 years. these guys are their bombs their charity cases right so and you say income is up 30 percent to be clear that's not wage that's income so it's people getting minimum wage plus government transfer payments that

are being stuffed into their mailboxes well charlie munger and warren buffett their income is by billions because instead of getting $800.00 or $2000.00 from the government they get $101520000000000.00 from the government but they're no different than the because they've never invented anything they've never built anything they just sit in their chair omaha nebraska and wait for the government to send the money and that's all they do with their bombs and their parasites the thing as it does expose his statement doesn't expose 1st of all he said you know big claim he hates the success of back line and with the success of big question does is expose the entirety of the lie of the financial system of weights she has benefited enormously but it also shows you that for all their smarts and all their value investing and looking you know digging into the books and examining the books of these companies and meeting the c.e.o.'s and doing all the due diligence like 2

that's a waste of time and money in a roaring twenty's when money is being thrown out the door like spankie back in the twenty's and the little rascals throwing money out the window well that's what the government is doing and so you don't you don't need to be any smarter than a monkey and some people say charlie munger cow looks like one but you know the fact is you anybody can make money and that is shown in as you mention warren buffet buys more of his new favorite stock berkshire hathaway but is a net seller on market as s. and p. $500.00 set record highs and the buffett indicator raises the alarm total u.s. market cap is now equal to 2. 226 percent of us g.d.p. way of of 1 the 100 percent that buffett sets his bubble threshold so over it's price is high anybody who bet on the bubble is winning of course says value

investors are the sort that will get out of the market thinking oh this is a bubble you know he would have got out at 100 percent certain scaling our and it's now doubled since then but this is the roaring twenty's right well this is where it gets pernicious and ugly in the fia money world war monger and buffett because they use the billions that the government gives them to lobby the government to do things like repeal glass steagall under the clinton administration or to get rid of the laws that prevented companies from buying back their own stock which is what happened under reagan a because it's patently market manipulation and stock manipulation to buy back your own stock and when you can do that with money that the government's giving it for free or at a 0 percent interest rate here clearly in a predatory position that's bankrupting large swathes of the economy and causing unemployment and causing these deaths of despair the number of opiate overdose

deaths last year up 520290000 thank you charlie and sank you warren obviously here they have like 150 more than $150000000000.00 just sitting there like a melting ice cube and they're treasury just sitting there doing nothing because they look around and say they see nothing worth investing and this is that the end of the past 20 years since they did lobby for the repealed last eagle the hollowing out of the us economy and. in fact he also mentioned at this point by the way he was a shareholder meeting this past weekend that he you know halfway j.p. morgan and some others were going to take on the health the health care. that sorry the health care racket in america and fyi said something along the lines of like well this racket is bigger than asra is 17 percent of the u.s. g.d.p. and there's a weak couldn't they these powerful multibillion are running the financial sector

couldn't make inroads into it because of their of the predatory those sort of motes that they set up around their racket very telling that buffett referred to america's health care system as a racket and you know a lot of people describe america as an emergency hospital waiting room disguised as a country yeah well i thought i might have put words in his mouth by saying he said iraqi but that's how i read what he said is that it was a total racket that even the likes of he could not read this quote it was something he mentioned that health care 70 percent of g.d.p. it's a huge percentage of the global g.d.p. and that too. he did refer to old copple a that it was hard to move that it was hard to make an impact on that it's an entrenched oleg off a list cartel that 17 percent of g.d.p. want to ship by by any industrialized standards country that should be more than 3 or 4 percent of g.d.p.

all the remaining trillions and trillions of dollars goes to the repay surest kleptocrats at the top who are literally stealing trillions and this was the primary reason america's become a laughing stock in my view well i'll tell you who's laughing that is the people of this huge nation and they are celebrating their series and it is the roaring twenty's for the people so let's look at these. wrong 20 sort of numbers this is amazing free money stimulus blowouts consumer income and spending on goods for a glorious what the heck chart of the year this is just freaking nuts says will factor it explains the record trade deficit bottlenecks she. shortages and inflation pressures among other distortions so what the heck overshoots personal income all. this is a remarkable now this goes back to 2015 and this is

a personal income that includes the government transfer is but like these are normal times these are the good times right markets we're hitting all time highs every year all throughout the 20152016171819 and during a global shutdown all production said down here here is the income of america collectively all 330000000 people this is the household income everything included right so to understand why this is a problem and why the comparison of the 1920 s. as important is because at the end of the 1920 s. you had the crash in the depression and what fuel of the speculative but bull market on wall street in 1920 s. was that for margin people to buy stocks for $0.10 on the dollar and this ballooned up to unsustainable levels and it crashed and we have a depression so how is the debt you already mentioned that this 200 percent debt to g.d.p. debt stock market valuation 26 percent right so that's one indication of how much debt it's way past where i was in the 1920 s. how about the federal reserve bank where the federal reserve bank they say they've

got something like 7 or 8 trillion dollars of the baskets on their balance sheets the resale value of those assets is is is maybe maybe $0.50 right because that's being very often right because they technically those those assets of 0 value they if they put them on their books at $0.10 on the dollar but they had to buy him from bankrupt institutions they would have had to declare bankruptcy like j.p. morgan instead they swap to the insolvent junk on their balance sheets for fresh treasury bills liquefying the banks like warren buffett that's how he made his billions stealing from america and they put it on the fed's balance sheet until such time as it like is a huge warehouse full of a loafer. all nitrate plutonium in $13.00 sitting next to a fireworks factory right at some point those 2 come together and go boom right but the ordinary people you're going to love this is the phase of

a ponzi that you love you don't say no to this right how do you say no to this your income collectively everybody around you was 19 trillion and 21000 just 2 years ago today it's 20 over 24 trillion right ok that's a lot more money 21000 children up to 24 trillion best income across america a lot of it printed up so you know sold to the fed it's a pretty you know a whole banana republics aren't they care is the consumer durables purchases chart again here is going back to 2008 that's a financial crisis when a defense look at that the what the heck the chart of durable goods these are like washing machines or refrigerators and all that sort of stuff. so all that money is being spent by a lot of people a lot into the savings but a lot into these there are a bill and that's why you see this huge congestion and the freight business all the

goods all the money being thrown like spankie at the window of the little rascals at china cheer china take my money if china sends over you know a refrigerator for you or a washing machine or the income from $1024.00 trillion times 2019 that's 5 trillion dollars we know from tracking the. cargo ships between here in asia so that $5000.00 we sent to china. essentially a lot of it because especially because in the past year a lot of services which you obviously are harder to export but you know so if you get your haircut school rents all that sort of stuff that's counted under services people have been paying their rants they haven't been paying their mortgage i mean even that income doesn't account doesn't count for the fact that you haven't also been paying any of your debts you haven't been paying your mortgage or rent or your school loans like there's been a moratorium on all of that so they're doubling you like wealthy there's a double roaring twenty's like this is just like because it's like having the

roaring twenty's plus all those programs of the 1930 s. of the you know. f.d.r.'s programs of the new deal oh i get it you're saying they take all the new deal and you combine it with the twenty's we're enjoying speculation and debt yes put it together yeah i may have to come up with something different than the roaring twenty's it has to be something like the psychotic 20 because like you know it's going to crash because that's what happens a crack up boom and the whole thing collapses like i'm in minsk he says and i'm in minsk of course saw that coming and still lost everything in the great depression so you know there is that but here they're saying like oh this is going to crash so we might as well just implement the programs now it's to. get it they're doing the after your rollout and half that's my job i've been comparing the f.d.r. and they refer mystery letters now whatever his middle name is as jay something big they think he's like a l.b.j. f.d.r.

and j something big so they're combining the they're taken the worst qualities of those 2 decades and they're combining it into one day called the psychotic twenty's we asked so we are like in the wrong twenty's literally and figuratively and. this could have a whole lot further to run we could out to the 1920 s. we already with the stock markets are already more overvalued than they were in 1921 by many different all the metrics that matter and so we're already past that but how do we double that from there like in warren buffett kind of based it like his theories of like once the stock market capitalization or solaris is that there's only one thing that hasn't got out and if you're a peter schiff twitter you know it is that's gold gold yeah yeah and that well that's the reason why we can continue this bubble by the way for a longer and bigger than what's happened in the last roaring twenty's like this is

the wrong twenty's right now it's repeating the it's going to start to ryan instead because it's going to go way bigger while this is often like on the way this could be the best year ever say to you for a 2nd half a lot more coming your way. the world is driven by dreamers shaped by one person those with. no dares thinks. we dare to ask.

them. while give these evolve and this us. into. war union. rational assaults. those that are full of need to feel. that the new doll cause i'm not. zooming up. to them. for. good. fortune for the outnumber.

more than a financial. welcome back to the kaiser report imax keyser time now to return to our conversation with legend there james turk of gold money dot com james welcome back thank you max ok to follow up on our conversation about the new numeric nummi air needed on any economic system you need hard money you need a unit of account i want to hypothetically put you into a radio control tower at the airport and the airplane is about to come in so land and it radios and james james i need a runway can you give me

a runway and your answer is well walk walk run runway would you feel like landing on. does that make any sense and is that what jay powell effectively is doing as leader of the fed. that's a good way of describing it max you know it gave me chuckle but yeah you know new rare is a fixed unit and that's what you need in order for calculation mothers announce a gold announce a silver but you know some kind of precious metal to determine how you calculate the price of goods and services that's why i always like to use this example of you know crude oil over the last 70 years today an ounce of gold buys the same amount of crude oil it did 70 years ago but it doesn't quite as you know just a fraction of what it was 70 years ago because of inflation so you need that numerary without it your lust just like that airplane trying to land you know there's a great debate recently between frank and michael saylor of micro strategy

as a goal versus bitcoin debate and one point that came up which i thought was interesting is that frank in talking about all the saying look i've got 10 percent of my part of all you know in gold as a hedge. and michael saylor was saying life the reason i buy that and the reason he's got that in there is a head is because of all the money printing and the irresponsibility never thing we're talking about here michael saylor saying look the reason i own because i own is it's more than a heads it's actually a solution to this problem. what yeah it's a good way of looking at it you know. he said in the other time we were chatting it out earlier that you know we know each other for 15 years and you know back years ago when become was 1st getting started. you know you and i had a number of conversations and it took me a little bit to get over the hurdle of what it was but you know when it reached $100.00 i became a believer that you know when was it and i've said it in subsequent interviews.

that can be found on the internet that it was the curse. and i still believe that because it is proven to be an escape currency it's a way of getting your purchasing power into something that's relatively safe but i'd like to make a point you know comparing it to gold because you know people try to say that they're. antagonistic to one another but in fact they're complimentary to one another because the weaknesses of gold are the strengths of decline and the weakness is the big question of the strengths of gold and by that what i mean is that you can hold a gold coin in your hand you can't do that with the bitcoin but gold because you can hold it in your hand can be confiscated but you can't confiscate big going to because it's distributed throughout the world in the internet so the 2 are really complimentary to one another and if you feel like you need to own gold in your portfolio and everybody should as a hedge you might also want to consider a crypto currency in your portfolio as well like bitcoin yeah you know i know 3

people out there called money jam star rice. and they are chef talking about all the back line 2 of us pay paul same really informed and keyed in on exactly what's going on. here chef does not and he's the most vocal. how does that nevermind how you want to talk about let's move on. james turk the i.m.f. recently argued that we need a new brighton or woods agreement a great reset. little historical give us some historical lesson stare grand ones after world war 2 the united states took over our u.s. dollar was the world reserve currency was backed by gold our. 2021 everything's going to. the garbage they're going to try a new brand what what are they going to do yeah bretton woods was just a government organization to bring strive to create a new career for the international monetary system. that was the principal thing

but the secondary thing that it did was to try to remove gold from the international monetary system to remove that discipline that kept central banks from getting too much money too much currency you know the history of money and 20th century is trying to separate national currencies from gold because central banks and governments didn't want to live within the discipline that don't gold imposes on the monetary system and you know we now have a monetary system nationally internationally without any kind of discipline which is why we have these problems today and why run this path to hyperinflation. it's interesting because bretton woods came just close your closing of world war 2 but the other example is world war 2 that was in my mind interesting to explain a little bit about monetary history and imports of gold is what happened in west germany when the allies the french germans how the french british and the americans created their predecessor for the bundestag with they did is they made the biggest

bank completely separate and distinct from the government so the bank could say no to buying government bonds because what happened was is that the government allies realize that in order to fight a war you have to have control of the currency and they just won 2 wars against the germans they didn't want to fight a 3rd so they made sure that there was that political discipline between the buns bank and the government and the irony is that they didn't impose it on themselves they really imposed on germany and it worked very very well the bundestag did a remarkable job in managing the national currency the deutsche mark up until the euro but now the bonus bank has become. you're elegant relative to the european central bank which is a political control so that's the lesson of the 20th century max you have to remove the currency crisis from government control right now governments are 100 percent in control of the currency and they're heading in the wrong direction yeah the bunda spank was really sensitive flash and very disciplined then.

drag it was over there at the e.c.b. and the e.c.b. essentially took over from the abundance bank when the introduction of the euro and then he started to do all this quantitative easing ally policy and expanding their balance sheet dramatically and so they lost all their discipline and they become a basket case just like the u.s. dollar you know one of your colleagues alister mcleod over there called money always excellent alister mcleod you know he says he thinks the dollar is going to affect him collapse you know he said he doesn't even think it's going to make it to the 50th anniversary this august stan druckenmiller has quote very very short the dollar so there's one thing to say all the dollars fading away and that's going to be replaced by that for some very smart people i think it's actually on the within months ali collapsing how do you weigh in on that. faggy with alistair i think

we're very very close. and he sees it was the greatest to come since try this century came up with this term called the crack boom you know he saw the hyperinflation in austria after the 1st world war and typically you have 6 to 12 months when the currency collapses once you're in hyper inflationary cracka. and i think we probably have already started to crack a boom in most countries around the world today including the united states which is why everything is going sky high people exit the new currency it may take longer than 6 to 12 months though because we have more regimentation and more controls and people today than there were in all. it's true after the 1st world war so maybe it's going to be a 12 month or 24 months you know cracka but if we don't get off this road toward hyperinflation if we don't stop turning us government paper into currency dollar will hyperinflation right stan talk a mile or stick on him for a 2nd he also says he's very long asia as they are the only economy left standing

after cove it they did not have to increase their money supply at the same pace is china to the post covert era as de u.s. was to the post world war 2 era james. yeah you know it's interesting you know that you have politics now everything and the only issue that i have with china is the rule of law is not well established private property rights are not will establish and that's a concern to me because you know in a free market in a free market economy the key the core element is private property rights so yeah you know. i think an alternative investment area i wouldn't put all my eggs them on basket you know i would diversify you know globally which is i think really the best strategy you know not only invest in your home country but in you know with some of your purchasing power in a variety of different countries that friday to finesse it's around the world for

a while even warren buffett has this but he's amount of capital says ferment that japan and south asia going on there the u.s. james wants to stop the belt and road initiative one could argue is similar to a post world war 2 marshall plan how do you think this city's trap will play out to say the rise of china and the fall of the u.s. you know we've seen these kinds of is built chairs amongst empires now going back thousands of years. does the u.s. engages china in hot war in other words is all this is us is going to go quietly as china moves up to the top dog ours are going to be a hot war. can't predict that one actually hope that it's going to be you know quiet no wars i think conventional wisdom is that eventually there will be a war but i'd take the contrary point of view and say there isn't going to be a war because everybody knows how bad it can be you know we seen it we know it can

happen i think everybody wants to avoid it so let's hope that that's the case but there is a point here that is important that you know empires die when the currency dies and i think again coming back to the dollar if we don't get off this road you know the american empire which doesn't suppose to be an empire anyway as opposed to the republic. you know there's some serious issues going head in terms of geopolitics if we don't fix this currency right thanks to current state james tarak of all you are running the fed james you know life is better for everyone thanks for being on kaiser report thank you very much track stars great to be with you all right well that's going to do it for this edition of kaiser report with a max hazard stacey however want to thank our guests james turner of gold money dot com until next time.

hello and welcome to cross talk where all things are considered time peter lavelle every president is obsessed with the issue of legacy the historical benchmarks or f.d.r. and l.b.j. joe biden is no different he is being encouraged to go big and fast and that he is there's just one problem f.d.r. and l.b.j. had massive majorities in congress and public opinion jochen think big.