they own homes there is a major shift in the market's composition due to the record shortage of existing homes available about one in 4 homes for sale are now newly built the highest share ever historically new homes make up just about one in 10 but fierce buyer competition is behind that shift prices for new and existing homes are at record highs for a member when we did our 1st show of the year we named 3 things for 2021 degree level ization dollars ation china fixation now here we are in the 2nd quarter of 2021 and it's showing up because one of the primary reason for getting inflation here is the degree level is ation that has put america and china on an antagonistic footing we've got a new cold war here and all the benefits that came to the u.s. economy by shipping all of our jobs over to china has now been used up right so now

because there's some antagonism and because incomes in china have now match those of you the u.s. . that ability to hide the money printing through the labor strength of china has gone so now you've got prices going up for real for stuff like lumber and that's not if the fed says it's transitory. i'm here to say that's a categorically a lie. unless unless globalization picks up again unless china and america start singing kumbaya together and everything is all katie now jakey jakey that could. well remember we were covering in the last episode like the boom in g.d.p. and consumption was a fight that you have to factor in these costs like inflation has also baked into there so if house prices are up $36000.00 if that's over 15 percent you know that's also factored into those numbers so you're starting to see all that inflation and

all of the numbers and it's not just lumber as they point out prices of gypsum which is drywall are up nearly 7 percent for me ergo steel mill product prices are at a record high up nearly 18 percent and march year over year it's used for being sheet metal products and wiring and the price of copper also set a record high this month and it's 27 percent year to date i remember discussing copper prices that were soaring back in the 20082009 financial crisis and that was also part of that supply chains getting knocked out during the global financial crisis during you know it was a liquidity crisis credit crisis right because nobody wanted to lend to each other so the cost of shipping across the world soared now the shipping costs are and freight costs are soaring because of you know the fact that the u.s. economy still shut down and only china is open but the u.s. economy the consumers have so much money now that they're buying all these things

and this is despite the lumber tariffs are still there that trump and should do so despite that the force the like they're paying any price and will factor is always mention that by the way on a wall street i thought that this is a mindset change a psychological change is that usually for the past 20 years like prices go up like this and people stop spending but there is that hyper inflationary mindset is like they have to. get something while they still can maybe they're also signaling they see they understand d. globalization is coming so you know we might as well get a laundry and new launch machine now while we can because you know it might take a few years for factories to set up in america or saw an alternative to emerge right and the inflation numbers are understated not for the reasons that we've talked about like the absence of including things like health care and education and housing and the official c.p.i. numbers the government still says inflation's at 1.6 percent because they're trying

to make it easier to lend money to warren buffett at 0 percent even though they know i'm sure that it's running at 789 percent but then when you factor in shrink life so a lot of people are noticing that their 16 ounce beef is the same price but it's only 12 ounce that the. bars from switzerland are missing some of the little pieces of the candy bar right that's shrunk slice and the prices of the same but you're getting 102030 percent less of the package so he had that together that's that's you now you're talking 20 percent inflation yeah but even the government the fed the fed numbers they did come out and say that the c.p.i. did jump but it's transitory and it's over 3 and a half percent now they are a signal it was a pretty huge jump but in terms of the situation we find ourselves and and so we have the house prices going up at least as some domestic wealth effect and you know

versus all that money the stimulus checks that we're sending to china but here's another interesting data point and chart that i saw this week that is part of that decomposition which is the 33 cities track that we talk about 1 all the time that when a rising nation starts to overtake the previous big power china overtaking the u.s. well you see that and the numbers and you see that i'm. if you trace the hostility between the 2 nations and actually also with this and that is in 2019 the number of chinese firms in the fortune 500 over took the number of american for the 1st time the number of american firms so here's the data going back to 1905 when i was there 0 5 and then we elevated them to the deputy favored nation status and you could see that china is now has more bigger companies than american ones to be fair

you know the article that they're linking to points out that a lot of them are state owned enterprises kind of like fannie mae freddie mac's sort of situation where they're getting a lot of backing from the government and then on the other hand in their defense you know dan collins is often finding out that especially in the financial services sector if and financial and other giants alibaba pay and they're starting to compete with you know the state enterprise or they were until i jack ma then think got went silent for some reason yes comical because it could save us from the white house and in washington the saying that you know. that sounds like antagonistic toward china like the like but but they're just listing companies on the exchange and now they're the huge component of the exchange it's really comical because they are the policy makers in d.c. they're there they don't know what they're doing they're stupid or they're in the pocket of some foreign powers well 8 like i said at the top there are lots of

people moused squatting in their homes and they haven't paid their mortgages or their rent for the past year and pretty much you if you listened in on them they would have they would justify it by hating the landlord that the landlord doesn't deserve their money the landlord is the scum the landlord is the they evil person and they justify same thing here in the debtor owes this creditor money and you know they've been. like didn't deserve my money and you know the same started there basically they're becoming like anti-globalization activists they don't want to they don't have to pay the money that they owe and you have to turn the person you owe money into the bad guy that's the way it happens and then like i've been costello they hated mr fields and billy was their landlord yeah bided and powell are like the new abbott and costello like. how come we're broke you know they're like i don't know jackie gleason and you know it's just

a sitcom basically so america's got a sitcom for government but also comic life i think is actually the best move to make is like to try to extend it pretend for this thing if the fia system is going to collapse you might as well you know act like huffy puffy you're going to pay them one day but you know you know just keep sending me those goods and i'll pay you one day you know just like act like a comic no you won't be from popeye for a hamburger today i'll pay you next tuesday that's joe biden china send us over another $50000.00 container ships full of stuff and we'll pay you next tuesday hey max everybody if we know the system is about to and they know the system is about to end they're going to but if somebody sending you essentially free goods. he got to keep it going i like he got it yes sure lister companies on our side sure bring it over here like you do whatever you can to let make sure the landlord lets you stay another month for free so the us is are such

a squatters in the world economy yeah why not life if it's over you i would do that that's my opinion that's what i would do i would get take as much free rent as i possibly could and that's what they're doing the us borrowed short term money for free for the 1st time since march 2024 week rates on bills are now the most negative since the height of the pandemic with the us paying down short term debt and investors looking to park record amounts of cash was very important because in other words they say that there is deflation and they say interest rates need to be near 0 percent because we need we need to do whatever we can to stimulate this more abundant commie were the interest rates are so low but that's the 2 faced lie because there is a huge inflation and there are the rates should be going up aggressively by say as paul volcker did in the seventy's to stem the inflation that's the way you run an economy but to have the worst of both worlds and say we're going to hyperinflation

take off while we're keeping jamie diamond's free open money spigot from the fed it's 0 percent and warren buffett jolly mongar right that's the recipe for otter fricken collapse a low does anyone care yeah on the one hand signalling deflation but on the other hand it's also signaling that banks like j.p. morgan don't want to lend to ordinary investor ordinary small businesses because they know those are going to be crushed perhaps in biden's tax wonder because the megacorporations well and it's also perhaps showing that inflation's even going to get worse because you know probably this is the fed just buying the treasuries you know debt like it's just the banana republican is and we've covered that with it's happening in canada it's happening. and they and european union and so it's just that it's the same thing it's more chewy it's more shenanigans it's more destruction of price signals. it's maybe testing the waters because it always has

been argued that you know the u.s. can't go negative because people will otherwise the dollar will die so you know that's my assessment all right cool we're going to take a break they will they come back once more coming your way.

but if you work for the team for the world with the chairs. ready to go they see if they do all this is lost just to take a cue into the. bush 90 students that are saying no reason to get the link if you get. to fish number those credits the people who build them water should that is that it's a piece of that issue or a small boat was arrested what's worse appreciate it. what school do. it's this issue of. golf if. you start out the story could get to be at any breach of buyouts of the watches but your meaning you just. saw mama was

a shade but they say you could be a queen you get out of the scott. peterson or chicago's 3 city prison on ottawa she has a mistress. the starter at the garage but he saw you for good and he just knew other than that he meant for us who wanted. to put on the but i reserve going to the poker listless all that business and just. to sort of. move from mining to must do i feel story least of korean missiles in the course of your new year which mrs jenner of ocean has just woken up from apricot feel the culture of. compound interest compassion. we think you minds be

soviet soldiers because of the boots she's wearing. to church so the soul looks like the moon the apostle the canoe more than with the new i'm going to show stuck in the other with some russian police force to just hold. welcome back to the geyser report it's time now to turn to the last man in new york city fire stein let's walk i'm sure have a rash great to see you all right now you wrote a book called plan a ponzi what's of course says was a breakout international best seller and now are at living a plan a ponzi everything is a plan a ponzi just like you predicted mets the people love it so incomes are up 21

percent just on the transfer payments from the feds printing money stock markets are ending all time highs annual consumer spending the most ever met now. it looks like the wrong twenty's or am i missing something or what's going on if we are lucky it's 1920 you know or whether it's $999.00 max every financial crisis from the beginning of time has happened for the same reason you much debt too much credit she much leverage and we discussed this in play it now a revolving door between washington and wall street is wide open these are not just wells risky. it's created a media a media in every market unlike what we've ever seen before we've got a combination between the governments of corporations or ideological fascists that are running the country truth no longer matters we have comedians marshalling the narrative we have shaped money printing fake sugar reserve shake economic data

shake sure it shrinks away sion media fake hollywood democracy and fake justice system so where the truth no longer matters in silicon valley the oligarchs are the people who are pulling all the strings on behalf of china you have a big problem because eventually people are going to start to get shut out with this because they realize they're being lightship you can only fool some of the people some of the 2. not all people oh tarnished ponzi schemes about to hit a wall in equals are about. right you know you hit on something very interesting going back to the 1920 s. of course we had a mania in the stock market and it crashed in a rush or then the depression but we have something kind of new sense then you know starting in the 1980 s. and then gathering speed for decades we had the securitization of everything in the economy everything that had an income or a yield attached to it was packaged turned into a bond sold hypothecated sold again so we have

a situation which is different than the twenty's and that is not just a stock or even maybe the bond market in a manic bubble but everything's in a bubble like lumber prices $36000.00 added to a cost of a new home just in the last year because lumber because it's been securitized because then financial ised as part of the ponzi plan of ponzi is racing ahead out of control prices are up 15 percent in the u.s. nearly 40 percent in canada for houses compare of the subprime crash or whatever incomes are now up interest rates are at an all time low fed is buying up the mortgage backed securities so they it looks like the twenty's but it actually structurally it's a lot worse than the 1920 s. but it's. oh yes max it's definitely worse and this is going to definitely end extremely bad news for everybody we show you money printing and using and she magic

money tree or modern monetary syria your agent will give $30.00 inch inequalities in one evening that hyperinflation will ramification is just the most is our thing i've ever heard in my whole life. and said this is for us dollar gemini's timing chain and china will probably come up in kind commodities along we will own ship other countries we can exchange look commodities fungible exchange or i don't know who our gold oil in kind of basket of commodities because printing paper that's absolutely worthless the young people are going to realize this is worthless we're going to buy stamps and eventually we'll have a bond buyers strike here and have. bonded get it armageddon in the bomb or it's which we haven't seen yet because you stand out well there she will linger long in the narrative she's going to get really ugly when people realize that this is the biggest ponzi scheme in history you know the book that i wrote obviously it was

a little it warts time but everything in it is still holds a new machine is ready to blow right all started by china for a 2nd you mentioned that you know china still takes our paper money you know people still buy stuff that money ends up going to china you know the incomes in america and alasdair is one from 1000 china 20 for china it's a 5 trillion dollar increase based on transfer payments that is the same money printing from the fed and of course i went out and bought stuff at wal-mart another big box stores which made it just went over to china so china still accepting the paper money from america and the question is. is it the one they're just going to say we're not going to take that money any more. concurrently i have a part of this question is that half of the fortune 500 now in the u.s. or china. yes companies so as our game plan the kind of play possum they say well take your funny money and we're going to buy half of the s. and p.

$500.00 until such time as we all the s. and p. $500.00 and then we will take your funny money more what's going on that's. the genuine is the change there was the dollar but i think they will come out with a terrible currency to replace dollar i think the us as parents is very much a one party system and they need equal they watch tried was so they want it you tried in the democrats fighting with while the biggest plunder and economic system you have china and the oligarchs ishq point in this better than anybody else traitor who will hear all sense or long or they want cheering $1000000000.00 in chad in here in china's or in in chains while you're right the same thing with. china rocks when we are grown and asian moved everything and no china will. probably run who are without a shot being fired is nobody titian's or china nobody and i standing on your

program of years of a chinese the issue russia's line issue all so don't you trouble me china is nobody as we. you know it's very easy because the wrong in your interest rate you make a comment like new zealand in this life by cash and the rest. is your. own use you need to do now and it's very difficult because cheney is throwing bundles of cash and now state and then at some point fannie mae and freddie mac. could be sold to china and then china would be america's biggest landlord and that my rang some bells or maybe not speaking of having people's bell rung joe biden wants to raise corporate taxes to 28 percent from 21 percent and double the capital gains tax to over 40 percent. this is a sound like a wedding formula to compete with china mats what do you think. i don't know i

don't think he's running the show i don't know if he knows it he bernie sanders and in kamala harris and a.b.c. that are behind the scenes here he's going to end in disaster because the economy is not better you can't there is no recovery it's a state recovery just like we have the shake shrinks lation and there are lying about the information numbers the employment numbers all you have to show 13 money and this money is needed look like there's an easy as good as it gets beginning of this year was as good as you're going to see everything's going to have a bush if it is declined from now on and raising taxes is just going to she will of fire things worse because it doesn't help profits it doesn't help we're not we don't have part to video we have this money thing in order for economy. we need to make products and 80 nothing standing money that we're changing and that's you know you can sustain this ridiculous farcical. shows or claims that we have right now

warren buffett underperformed the s. and p. 500 for the past 20 heiress and charlie munger now say that it is that co i am not feel what's not only quote disgusting but i threat to manchester of civilization what do you think of the greater threat charlie munger innisfail or bekele i'm let's. janet yellen running the treasury is a bigger threat than all of them i mean look she can get it right it's no reserve i did a presentation insincerely and zoom and were a couple slides here's one of them about general yellen when she is at the central bank machine instruction in central banks right now she's paid $8000000.00 by lobbying organizations and big guy that's where she got the treasury she who she looking out for she's already said she's going to declare war on what exactly will be as i've said many times

a little more going on is an alternative asset class with all juniors extremely high and it's i think it's binary sheer if you go to a 1000000 or you go to 0 and so people should have it worse in their only or it should be part of it we should we shouldn't buy into any investment if they can afford to lose money on it in the short term because there's no guarantees wonder that you can tell you is that evaluations of the stock more than apple it you lose 4 trillion in these companies that are valuing what you change dollars is the most bizarre thing we history of this universe the same thing you can't tesla it's never made a profit you know profits are right it's in a profits made. trading between doing other things and not selling cars which is the primary business you on my scheme shelf of a $100000000000.00 it has made a $100000000000.00 in in calendar 2020 and this is an indication that machine and or far off you know it was the. bubble let's turn into media i own take

a while digress and hair you know because i'm not a full on solving it we have a lot of chats and stuff song i go with us so you're a new yorker i'm a new yorker and the news that they have on moscow saturday night live was as a new yorker thing. because the cast members to panic and suggest they wouldn't be on the show for some salsa justice warrior thing i'm not sure exactly what. but is that doesn't that kind of say no to you as it does to me that america in a new york is kind of the cultural center of america has lost its mojo like this is so sad net what are your thoughts. well look i think you got the social justice you don't understand that there's a difference between justice in germs or justice for all and in terms of liberty

and in terms of democracy and social justice this is just you know what happens when you have 40 years of indoctrination in school system and it's interested in shack it rather than corporations it wasnt where we should jackson who is in charge of the e.g.a. all 8 ministers of the e.t.n. were obama and his apple she's all these people you know it's part of washington wall street a play a revolving door so they go to regimes like apple and they run them all season air after being. alone now it's all about social justice and is it any and i shot it you know last it's going to be on saturday night live what he bought his way in there he's one of the richest allies in the world will his empire come crumbling down well he used the internet to get worry is used on social media it's all is it's smoke and mirrors and maybe all comes crashing down when you lot of people lauren michaels like and a cough from the asses say that and that the answer as thing there anyway we got to

wrap it up mitt's now senator sam person again thanks for being on a cause report as you know you need the next file has got a definite suggest not the kaiser report with may max foster and stays there but want to thank our guest met firesign author of plan a ponzi and so nice time by the. americans love buying homes. and this was a fundamental part of how our political leadership and our country at large understood the bargain you get a hope and then you know rebel right that's the things you don't revolt if you have a stake in the system. really interesting to dial it back and think about

the longer deeper history housings men in the united states not just that old question of the american dream but the bigger question of who the dream is and for . the world is driven by a dream shaped by some person of those. thinks . we dare to ask.

do you. think. there are things i would say i'm not american but americans help out really. world war 2 cures the depression farce the united states is concerned prosperity of course and store. led. elites. for the for us the whole world what it what and. historical rewrite ever since world war 2 to foment the cold war against russia against communism and. socialists nish closeness to the soviet army out to all just a swath of the earth so you could call them go. all i think world war 2 has been the story credibly by the anglo-american media and that's because they wanted

to minish the role of russia. and stalin who actually defeated hitler. so we can stories here without city france schools from using awoke to flushing all the fun. avoids sexism. divided about whether reforms are in fact needed. we must include everyone for me it's bland. and ricing is something you have to take into account. speech. over 200 people and a number of offices. in jerusalem with police apparently also taking exception to.