we recently spoke about that on kai's report but here are some new data points to look at soaring a lumber of prices at $36000.00 so the cost of a new home and a fierce landgrab is only making it worse so a lumber prices so far this year since january 1st of 2021 are up 67 percent they're up 340 percent from a year ago and you know part of the reason well we we have discussed all the money printing that's causing inflation on this is part of that but the other part of course is with all the free money in stimulus comes the desire for many to move out of the cities they don't want to be stuck in a turtle pandemic lockdowns going off in the next ferris so there's a land shortage because. very few people. who haven't been paying their mortgage for the past year or their rent to the landlord don't there are

moratoriums on kicking them out so they're stuck in there so this shows up in the the supply the actual supply why there's a record number of people trying to build new houses because there's a shortage of supply of previously owned 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 a fierce buyer competition is behind that shift prices for a new and existing homes are at record highs for a member when we did our 1st show of the year we name 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 reasons for getting inflation here is the degree level is ation that has put american 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. it has now been used up right so now because there's a man tagged as a and because incomes in china have now match those of use the us. that ability to hide the money printing through the labor sank in china has gone so now you've got prices going up for real for stuff like lumber and that's if the fed says it's transitory. i'm here to say that's a categorically a lie because unless unless globalisation picks up again unless china and america start singing kumbaya together and everything's all katie now shaky now jakey that . well remember we were covering in the last episode like the boom in g.d.p. and consumption and stuff like that you have to factor in these costs like

inflation baked into there so if house prices are 36000 dollars if that's up 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 ship and 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 for sure is always mentioned that by the way on wall street i found that this is a mindset change and 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 laundry 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 buffet at 0 percent even though they know i'm sure that it's running at 789 percent but then when you factor in shrink so a lot of people are noticing that they're 16 ounce beef is the same price but it's only $12.00 ounce that the law and loan bars from switzerland are missing some of the little pieces of the of the candy bar right this shrank slice and the prices are the same but you're getting 102030 percent less of the package so he had that's a gather that's. 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 so they are 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. he says 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 all 1 the time that when a rising nation starts to overtake the previous big power. overtaking the u.s. well you see that and the numbers and you see that i mean if you trace the hostility between the 2 nations and actually also with this and that is and 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

there is 0 and then we elevated them to the deputy 0 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 pointing out that especially in the financial services sector you have 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 if statements from the white house and in washington the saying that you know. that sound like the antagonistic toward china like to like them but but they're just listing companies on the exchange and now there's

a bit huge component of the exchange it's really comical because they are the policy makers in d.c. are there they're they don't know what they're doing they're stupid or they're in the. 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 landlords of the landlord doesn't deserve their money the landlord is the scum the landlord is the they evil person and they justify the same thing here in the debtor owes this creditor money and you know they become like that doesn't deserve my money that you know the same start 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 a bad guy that's the way it happens and then like abbott and costello they hated mr

fields and billy was their landlord yet oh you go by the event 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 sadly but also comically 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 want to be from popeye for a hamburger today i'll pay you next tuesday that's joe biden china sent us over another 50000 container ships full of stuff and we'll pay you next tuesday hey max everybody if we know this system is about to end 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 list your 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 our side say squatters in the world economy yeah why not like if it's over 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 u.s. 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 us paying down short term debt and investors looking to park record amounts of cash was very important because another worth 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 cami where the interest rates are so low but that's the 2 faced lie because there is huge inflation and there are the rates

should be going up aggressively like say as paul volcker did in the seventy's to stem the inflation that's a way to run an economy but to have the worst of both worlds and say we're going to what hyperinflation take off while we're keeping jamie diamond's free open money spigot from the fed at 0 percent and warren buffett jolly mongar right that's the recipe for odder for it them collapse a low does anyone care yeah on the one hand a signaling 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 and biden's tax blunder 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 cook we're going to take a break they will they come back once more coming your way.

through at the garage or at least so you can each other the human body. but on the better side going to the brooklyn sissel that this is from you soon you do consider to. be able to share learning 2 months ago if you'll still released the cleanest little cynical spring the busiest of ocean is just located if you go chill the culture.

business compassion. eastlink he minds be soldier deep is also the boot she's wearing. the trench so alone so looks like to move the opposing opinion with. the sure stuck in that summarizing the police force send us all the. welcome back to the kaiser report it's time now to turn to the last man in new york city fire stein let's welcome thanks for having rash. 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. 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 192940 like 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 too much leverage and we discussed this in play and now the revolving door between washington and wall street is wide open these are not just well it was a risky it's a it's created a media

a media in every market unlike what we were 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 to take money printing fake federal reserve shake economic data shake sure it shrink felician shape media fake hollywood fake emma 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 let's. not all people all over time in this kanzi scenes about it all in these bubbles 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 and it ushered in the depression

but we have something kind of a 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 it's not just the 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 compared to the subprime crash however incomes are now up interest rates were 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 in the senate definitely and extremely bad news for everybody money printing and getting an energy a magic money tree or modern monetary syria that your agent will turn to internet quantum's of one even that hyperinflation will ramification is just the most bizarre thing i've ever heard in my whole life. except this short us dollar genovese tony jr and china will probably come up with any kind of commodities along we will own shit other countries with an exchange will commodities fungible exchange or i don't know who our gold 'd oil kind of basket of commodities because printing paper it's actually witnessed the young people are going to realize this is worthless we're going to buy and eventually we'll have

a bond buyers shrike here and have. want to get it armageddon in the bomb or it's which we haven't seen yet because you still got people where she pulling a long narrative she's going to get really ugly when people realize that this is the biggest ponzi scheme in history now the book that i wrote obviously was a little short time but everything in it still holds a new money she is ready to blow right all started by china for a 2nd imagine 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 in the last 3 years on from 1000 china 24 china's a 5 trillion dollar increase based on transfer payments that is the same money printing from the fed and of course they went out and bought stuff at wal-mart other big box stores which means 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 competence so is there a game plan the kind of play possum they say will 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 won't take your funny money anymore what's going on that's. a genuine where is the church is the hour when i think they will come out with a parable to replace the dollar i think you asked as harrah's is very much a one party system and they made their watch try to say they want it you tried in the democrats fighting while the biggest funder of economic system you have that state was china and the oligarchs ishq point in this better than anybody else. twitter google search long america they want sharing 1000000000 new customers in

china and they're in china's all in chains while you're right saying you know must china rock when we are quote everything and you know china. has probably won the war without a shot being fired is nobody. china nobody and i standing on your program years ago the chinese the issue russia's line issue was. problem in china is nobody as we. you know it's too easy because they're wrong in your interest rate to make a comment like new zealand english live by cash and the rest. as you. want news you need to do now and it's very difficult because cheney is throwing bungles cashing now thank them 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 running 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 or lump it he bernie sanders and it will harrison 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 recovery just like we have the shake shrinks lation and there were lying about the wonders the employment numbers all you have is a shed 13 money and this money is needed look like yours and yours is good as it gets you're getting of this year was as good as you're going to see everything's going to have a ship that is declining from now on and raising taxes if you will of the fire

things worse because it doesn't help profits it doesn't help we're not we don't have our charity or we have this money in order for an economy to try we need to make products we're making nothing we're standing on it returned to us you know you can sustain this wooded hills farcical. those are claims that we have right now warren buffett underperform the s. and p. $500.00 for the past 20 heiress and charlie munger now say that it is it and not feel what's not only quote disgusting but i threat to mantras of civilization was serious think of the greater threat charlie munger and his fear or bet climb 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 her presentation in switzerland. and there are a couple slides here's one of them about general jaan is use at the central bank

machine instruction in central banks right now she's paid $8000000.00. lobbying organizations and big banks that's where she got the issue treasury issue who she looking out for she's already said she's going to declare war on because we won't know jack we will meet as i've said many times and we're going on is an alternative asset class we've also used it should be high and it's i think it's binary shit if you go to a 1000000 or you're going to 0 it so people should have it were sitting in there or only or should be part of it but we shouldn't 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 markets and apple if you want 4 trillion in these companies that are violating what you're training dollars just the most bizarre thing in the history of this universe the same thing you test test it's never made a profit you know profits on our rigs and they make profits with. trading

bits we're going to do other things we're not selling pause which is the primary business you are musky himself to the $100000000000.00 it has made a $100000000000.00 in in calendar 2020 and this is an indication that machine and froth is the. bubble that's turned into media i am take a while digression here you know because i'm not a fraud we have a lot of chats and song i go with us so you're a new yorker i'm a new yorker and the news that they have on moscow's case saturday night live was as a new yorker. because the cast members to panic and suggest they wouldn't be on the show for some salsa justice farrior fang a lot sure exactly what. but is that doesn't that kind of say no to us 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 that you what are your thoughts. well look i think you got into social justice they don't understand that there's a difference between justice in terms of 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 shorter years of indoctrination in school systems and it's in chess to ensure it rather than corporations it was where we should jackson who raised in charge of the e.p.a. or a good history of the e.t.n. were obamacare was ackles she's all these people you know it's partly washington and wall street play the revolving door so they go to regimes like apple and iran that all season there are you're gay you're alone now it's all about social justice and is it any and my shot it almost is going to be on saturday night live what he bought his way in there is one of the richest national will will his empire come

crumbling down he used the internet to get worry is used on social media to get where he is it's all is it's smoke and mirrors in walton's crashing down when a lot of people lorne michaels like and a cough from the asses say thing that the answer as thing there anyway we got to wrap it up mitt's now senator sam person again thanks for being on the cars report . no you need a gnat's file has got a death of us a test not the kaiser report with may max foster and stacy everett was like our guest misfires time author of plan a ponzi and so much time by the. while

give easy vile son this us. war union one slide yes south. rational a south and. desire for one community the feel. that the new doc was among the is small which. is him yeah full. of them should select cities says the. small fortune in the beginning to your. fortune for the outnumbered

a lot of both. more than enough to show us things natural. law. was a pandemic no certainly no borders i'm just delighted to nationalities. so much we don't come with me we don't look like seem to. be just sick. of judgment is coming every crisis is sometimes a moment. we should. everyone is contributing each of our own way but we also know that this crisis. will not go on forever challenges for the response has been much so many good people are helping us. it makes us feel

very proud that we are in it together. in. france by and schools from using a modified version of the french language that supporters say avoids sexism people to bitterly divided over about whether all forms are really needed. we must include everyone for me it's a bit bland to the issue of sexism and racism is something you have to take into account sleaze is useless it complicates speech. over 200 people and a number of police officers are injured in clashes in jerusalem with security forces taking a tough line on journalists filming the armrests. the day to go until moscow stages its annual victory parade we join the assholes in the sky.