this is the kaiser report i may have to start wearing even wider ties says for going back to the 1970s possibly even a leisure suit powder blue of course stacy cray i know i actually thought of wearing my poncho for this because you know how that how flower child thing was happening in the seventy's and of course you and i remember the seventy's during the oil embargo and then the iranian revolution which caused price spikes in gasoline and shortages here across america and we have them again max and i drove from northern virginia down to north carolina so about a 325 mile drive and as we're heading further and further south there are more and more gas stations without any gas and those that did have gasoline had huge lines

sometimes miles long so it was so weird this time of pandemic and shortages and loads of things like microchips and other in the beginning of the pandemic of course we had food shortages now we also have oversupply and like you know money and treasuries and bonds all over the place that's why we have negative. stuff like that so we have all sorts of price signals mast up and crazy times all right the crisis and so the crisis begins that's the way you used to be now there is just $1.00 crisis on top of another you don't know where one starts and one stops and it's just a multiple crises stacked up you know right there in front of us think of yourself by goodness gracious what happened then you know when i was looking at all these lines at the gas stations i did have a gasoline available i was thinking you know in the 1970 s. at least like we had jobs to go to people or working. had to work for their money

we had stagflation just like we have now but back then like there were no this there was very little welfare available and in fact member when new york city went broke what's in ford say to new york city drop dead said go go broke now nobody's allowed to go broke so there's all this money of course also there are anti gouging laws so even though people were showing up with canisters all over the place filling up tanks huge tanks filled with gasoline the price signal was saying do it like go for it's cheap because your bouts have total shortage right so this price signal is an important fact to wrap our minds around and how do empires collapse arab countries collapse and we saw a fantastic collapse and with the soviet union and they had a similar situation where it wasn't about the price of gold money failing it was about the price signal of manufacturing failing in other words they were keen on

putting out a certain number of farm equipment and tractors no matter what the cost they had no accounting for they just wanted the raw number of farm equipment and that was a metric that they use like we are we we generated x. number of 100000 tractors. and there said no price signals so it collapsed here in the united states the money itself is not driven by any kind of a price signal it's it's the poll bureau called the federal open market committee and they stay fixed prices or they rig prices or they control prices price control for the dollar and so all price signals like in the soviet union have gone nuts and similarly like the soviet union the united states is now collapsing of course we're comparing it to the 1970 s. when we also had shortages due to conflicts happening in the middle east where we're having conflict now but that doesn't impact anything and. price ignorance

back in the 1970 s. we saw huge inflation but we also saw interest rates soaring right so there has points out that the last time core c.p.i. was here the fed funds rate was 20 percent you know the core c.p.i. numbers came in and it's over 4 percent but they're like if you exclude food and energy it's only 3 percent of course there is that base problem where like it's comparing it to last year during the middle of the beginning of the pandemic so they're saying that's why it's higher than it is but again because they just for price signals and the price signal at the gasoline station for example it's all you that there's no problem no shortages plenty of supply $2.85 it's only up like $0.33 since that knock out of the pipeline happened and that whole disintegration we've been talking about the disintegration and the d. globalization and the entropy that happens in a system like the u.s. dollar which turns 50 this year or the us empire which maybe turned 6570 this year

and what you're seeing is the like with this the pipeline being taken out i mean it's hard to get real information about about what it seems like it's like people are saying this shouldn't be able to happen like that the fact that one pipeline provides 45 percent of the gasoline to the entire east coast of america but that they could be taken offline by some sort of hacker pressing an email the wrong link or something right well having a 3 lack of diversity in competition in the oil business as the result of mergers and acquisitions of the monopolization or all of gobble is a shell of the u.s. economy thanks to cheap money and private equity and no regulators and no respect of competition or free market enterprise and now going back to the 1970 s. yes interest rates went up to 20 percent and the bond market crashed because the price signal told the central bank at the time under paul volcker that thanks to richard nixon's. my. the printing and default on the u.s. dollar in the 1970 s.

and the problems associated with the cost of the vietnam war that had to be wrong out of the system there was too much for your money and be wrung out of the system so at that time in the seventy's america was not scared and hiding in the bed about the fact that they would have to actually work for a living and be productive in some way unlike today where people are not working they are there they fear the work has become a 4 letter word in america again is the price signal because as we've covered in many in the media have been covering the fact that you know with government transfers the av you know if you're staying at home and not working out and on and hence unemployment benefits you're making over $16.00 an hour and that is a problem we saw that in the strive up to north virginia and back as we saw help wanted signs everywhere literally everywhere even in abandoned like fields of where used to be agricultural agricultural fields along the rivers you know you saw signs

like delivery driver needed urgent and that brings me to the other problem with what is happening with the gasoline is that apparently there's also c.n.n. was already warning for example before this pipeline shut down and that was that there would be shortages the gasoline at castrations because there's a huge shortage of delivery drivers because it's a very specialized field but you to be able to drive you know a tanker filled with feel so there are the shut the pen demick shut down the schools that trained the younger ones coming online but there's also new regulations that were brought in in january 2020 whereby if you've had any sort of drug or alcohol related conviction you're not allowed to drive so that kicked off between 40 and 60000 people that wanted to be delivery drivers but they can't be because of these past records so there is this is a general entropy and disintegration like everything it's. not one thing goes wrong

everything goes wrong and right well the problem with billionaires is not that they . buy some don't pay enough taxes the problem is that they got to be billionaires by hollowing out the economy by destroying the infrastructure by stealing from pension accounts from destroying the moral fabric of the country people like warren buffett or jeff bezos or bill gates successor etc they did so they achieve their wealth at the expense of the common good they literally threw the country under the bus and now we're dealing with the consequences of really starting with reagan and thatcher and the deregulation and central banks became activist under greenspan bernanke yellen and now jay powell where they do the bidding of the oligarchs and america has a very nasty oligarch problem and we need a leader that can deal with the oligarchs clearly the current policy leadership in the washington has no way to deal with oligarchies in america that's sad so going

back to the 1970 s. and comparing the situation to then we're 50 years since the us dollar began and a global reserve standard in 1971 when nixon took us off the gold window so full circle like we started this year saying the u.s. dollar turns 50 is that going to make this year and of course the entropy sets in the entropy sets in the human being when you turn 50 things start going wrong you know it takes you longer to recover from certain things the same thing i believe is happening and you can see this and i get another is there a hedge headline that is rainbow bank richard nixon was the last u.s. president to face a major economic crisis involving soaring inflation and gasoline and supply chains and the middle east emma superpower rivalry and the us dollar itself so you're starting to see all that the cycle turn the 4th herding all the stuff the entropy is setting in the disintegration is happening and i might say like again on the drive you know you could do it. anybody could go to the drive if you could buy some

gasoline and what you'll see is bizarrely which i had not been expecting is the trump 2024 bumper stickers and yard signs all over the place i was a little bit surprised to see that because i hadn't really read about it so you know the 70s also featured disco and. a in abandonment of the rock n roll era. which was a net benefit i think to some degree because we have they had to endure what's called progressive rock and we fortunately came to the church of iggy pop who. pumped us out of the nixon malays so he had a new iggy pop or bring back iggy pop i just saw a minute you with a parrot singing some song that's all we need we need to get back. what we have better than 80 pop we have bitcoin and that's in the news because we've also been covering sandrock and miller who's been pretty active warning about this like you

started back at the end of the summer when all the money printing was becoming quite apparent and he was expressing his concern and it was telling everybody and we told you that he was saying that he's very very very short of the u.s. dollar and he's even further short the us dollar he actually was on c n b c this week and he said that he doesn't think the u.s. dollar as a reserve currency will survive for another 15 years so again that's sounding like us he's one of the most legendary of hedge fund managers in the world was part of the soros quantum fine when they shorted the pound and forced them out of the exchange rate mechanism he also said center offer miller 5 years ago i said crypto was a solution in search of a problem well now the problem has been clearly identified as jerome powell and the rest of the world central bankers there's a lack of trust but you can trust kaiser for we've been telling you all this time he didn't see it 5 years ago we told you 5 years ago now he's saying yes stacy and

max are right 5 years ago this stuff this is causing all the money printing it's cost her 10 years and we said the problem with such a bank's yes we did hear yes a stance that the mellers like oh finally i figured out you know had you been doing it we have been doing stand your performance would have been a 1000 times better he would be losing money like re dahlia so back in the seventy's when we were talking about when this all began then we had paul volcker to who is the one that took interest rates up to make iggy pop head of the central bank he's the new call if they could be the new paul volcker look because it is the solution for all problems i see this all occurred. in the middle east again you know everyone was on a pickling standard peace and love a break out and we could finally get over this curry easiness but you know everyone to learn their own time and i'll pay what they deserve for because i going to take a break and when we come back much more coming your way.

we 1st like when you on the us come to and spoke to. if somebody would have been to spend my life playing committees i'll talk to story corps in the solti was clearly seen. every night although we were attacked by the arabs or we will attacking them and we will extremely shocked. saying that's not possible i'll meet doesn't do such scenes and then disorder simple myself from the work of some of those books the house without the prison or with all the god of the world they all are. really much 2nd class citizens in the on call. it was like and i think in my head

that there is no way to be able to live together without. passing. by the pandemic no sin you know borders i'm just blind to nationalities. as obliged to deal with the we don't look like seem to be saying. judgement is coming close is just something to. do better we should be better. everyone is contributing each way but we also know that this crisis will not go on forever the challenges for the response has been masked so many good people are helping us. it makes us feel very proud that we are in it together.

welcome back to the kaiser report i'm max keiser time now to go to a very special guest the emmet of all david morgan of the morgan report david welcome back to school too long thanks for having me. right i know i'm just figuring out which one of us is getting more gray hair i think you might be winning that race but i'm a close 2nd now let's move on dave i got to ask are you having flashbacks of the 1970 s. gasoline shortages everybody on employed what next. very much so it

does remind me of the oil crunch i lived through it i was pretty young in those days and you filled up based on your license plate of food in there with of the even or an odd number lot of tension in the air a lot of uncertainty and we're back at the same place only it's on have global scale i know it's u.s. based primarily but it's worldwide based on a lot of things primarily the reserve currency being the dollar and of course it's been off quite a bit with the what's going on the trip to world that you're much more familiar with the me and the people that refuse to use the dollar in an actual commerce in the sort of committed to swiss system so lots of things playing out this time that didn't exist the last from the faces from the crisis yeah exactly a lot of things that were not present back then are going to be adding to the dimension of this particular period as you point out the u.s. dollar of course world's reserve currency and that seems to be spreading this 1970

s. like stagflation and everything assess in a way that to a global basis rata 50 year anniversary the dollar people like stan truckin miller and others don't think the dollar is even going to get to august and even get to a 50 year anniversary and you know this is all coming together in a kind of a convergence of disaster and. you know you do mention the u.s. dollar there and there is a global rejection seemingly of the u.s. dollar and there's a lot of pieces of that puzzle how do you approach that. well you know it's probably been overstated max good approach is based on the debt bomb you know it's all confidence it's complete condie aim if you don't trust the dollars you know 6 months out why would you buy a 30 year treasury so it's this back and forth yield curve you know that just been

so way that they can the financial eyes everything and make people continue to play the bond market basically on a trading vehicle basis rather than on investment basis is starting to wear thin as you well know and i think we don't have a lot longer ricer the room itself from the same category as growth kamil are but i would say august seems a little early i certainly wouldn't rule it out we're seeing the last vestige of hope for the central bankers to push this through dr and see further and that's why you see the competing currency needs to go strong with big court in the other trip those people are looking for a way out very typical the end of a few of the experiment that's got a sad because myself and others have been talking about some things like how the u.s. economy has gotten hollowed out. 0 percent interest rates remember back in the seventy's it was illegal for companies to do stock buybacks for obvious reasons it's rank

stock manipulation and yet starting in the eighty's starting with reagan and the deregulation that became legal and companies don't manufacture anymore they don't hire decent wages anymore yes they buy back their own stock to manipulate their own stocks that they have can make hundreds of billions of dollars and so that the economy and the country if you look at the infrastructure fails the roads and bridges are failing that the gas is unavailable all it's it's it's been hollowed out i mean i don't i don't think it's too too far a stretch to say were answering similar moment as the soviet union did. and it collapsed i think it's for the similar reasons it's just the economy is much too fragile the leadership is essentially an oligarch at this point there's no democratic rule of overall of law is that too far stretch. no it sounds

very demure gloomy but i have to say i think you're doing a reasoned response to the real situation and knows it could add further max and you did a great job is glass steagall i mean if we had that intact where commercial banks let the farmers and builders. built out infrastructure and you didn't have to play russian roulette with the best food markets we might have a stronger economy but once under the clinton administration i'm bipartisan i did all politicians but. i think that we don't really have a different economy but once we everyone started playing this investment banking game whether they wanted to or not it distorted the misallocation of capital that we talk about in the mood we're in together so many years ago and this continued to go down that trail in the road i think you know could commit down down the road at the end right of course at the end of the 19 $170.00 s. at the end of it and stagflation or

a period paul volcker. jack rates the bond market collapsed and that was probably the last time the actual price discovery in a major market in america because starting in 1980 s. and particularly after the crash of 87 to our grasp and robert rubin reagan interceded and started to buy stocks for their the house account in washington d.c. say you haven't had price this governor has been price fixing as spend the price of money itself or interest rates as a pole of bureau of bureaucrats in washington that establishes those rights and now 5th you know 40 years later it's predictable way a predictable collapse because they haven't had free market capitalism in 3540 years in america it's been oligarchies and the oligarchies this billionaires they didn't do it because they're smart they did it because they stole it you know warren buffett's got to be probably the the guy who has transferred more wealth say hey. personally but views ing accounting fraud and market

manipulation that is what n s 3 right he's never invented anything he's never done anything productive he's only been on the receiving end of major all of our tax fraud in america and now it's the chickens are coming home to roost and he'll be gone him and charlie will be in the they'll be gone soon hell what do they leave behind but isn't norma's garbage of a mess it's disgusting of your guts and you're on the scene you're straight forward a snatch i always have been you i really can't add on to it except that to say you know we've got to have the right attitude we have to accept those facts you just outlined and understand with the consequences of that you know there's a. there's a law you know it's a law of you not to read. the repercussions of what you sow and we've shown bad seed for a long time we've faith to only do it we are under it all 'd of our control and now

we're going after pay the price on a societal basis and the more your able to understand that the better you able to cope because of this point there's really no way out people that fuel what do we do or say get away for to bottom i think we're not going to be deep down the hill you know crass to the you know bottom but you know that possibility exists i don't want to be too gloomy here max but the point being what's going on there you know north carolina where you are with this pipeline situation this these complex societies have problems a compound you know when the oil doesn't flow then the transportation doesn't say and the people start hoarding then you get more fear in the system and then they start thinking well maybe you know what's the next thing to be short of and this is have a way of let's say exploding exponentially before you know it. yeah you know i'm watching the fed here under jay powell and they. even crease the money supply in

the last year or so in terms of the entire history of money supply in america they've increased it by 25 percent or so just in the last year so if i got to believe that they know kind of what they're doing it's like one of those teen movies where the teenagers find the parents liquor in a cabinet and they decide to go crazy for the weekend they know they're going to get in trouble but they do it anyway so i think the fed knows that these are the last days of disco that the party is over and jay powell is just like before collapses i'm just going to do one last super multi 100000000000 dollar injection to my friends am i being cynical or is he urs he simply just before he retires or starts working for jeff bezos or starts working for these guys or citadel capital where of course ben bernanke he is and he oversaw the game stop fiasco it's not engineered right is it is he just doing

a one last push to get that big big big job once he once he leaves affect the central bank david. i asked the most truthful answer i give you max is i don't know but i certainly agree with your metaphor your analogy i think it's extremely accurate there is no exit act point with most mainstream economists what's hyperinflation most of us give it our rule of thumb of about 20 percent when you've increased the money supply 25 percent as you so eloquently said we know we are in dire straits we know where if you have the game and yet they'll have the let's say guts to get on that issue like t.v. and say if inflation starts to rear its ugly head we have the tools to put it back in a box which is ludicrous there's absolutely no way so i'm looking for a stagflation ery depression some things will be going up like everything we need like food and energy housing and everything we don't need like the 3rd big screen t.v. that's you know 100 inches by 2 other or whatever this nonsense goes

a little you know i phone 27.2 lot of that stuff not is going to be there but a lot of stuff that we don't know if it's there we need to survive it's probably will come down to price which you could say is the place sherry but the stuff we really need to live is going to continue to go our right said david that for you know a long time we might sell that place and 1.6 percent just got some data now they're saying oh it's 4.6 percent that's still seems the way i understand it david margan well i didn't hear it to john williams and i try to seek truth in all aspects of my life and john calculates the inflation rates based on how the calculation was done in 1980 if you use those metrics and used to do netaji the 2 things people need the most you have about a 9.7 percent inflation rate right now and they could be so holder who are a little bit further just answer this question for one of my members so while i'm worried about this inflation thing i know it's good for the metals but then higher

interest rates push the gold price down as a pretty simple answer you have to look at what is the true. you inflation rate and what's the interest rate and look at those terms so what i'm saying is you have nothing to fear as it is straight to about 9 percent because that's the true inflation rate when volcker came in it just rates by the c.p.i. which was accurate 1980 was 13 percent you push interest rates up to 20 percent which gave you a delta of 7 percent real yield that killed the gold market help the body of trust the bond market will put the country back on track in the best he doesn't he could make for the last 40 years was a long ball on those days are over and the point i'm making and he should reemphasize max is they can't do that again we don't have the margin to do it you put interest rates up to probably 45 percent the interest as owed on the national debt would be so astronomical you can even make the interest rate all right we're

going to have to cut it there for the 2nd segment david thanks man kaiser report my pleasure thank you and that's going to do it for this edition of kaiser report with me max katherine stacy herbert want to thank our guest david margan of the margaret park until next time buy a. home . run ellen so it's seems wrong. wrong just don't call. me i'll get to see how he's going to come after him and in danger because the trail. when something is find themselves worlds apart. just on the common ground.

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every morning here in moscow and in our headlines this morning the number of victims grows as israel's shelling of guards or enters a 2nd week party speaks to a 10 year old girl who witnessed the destruction of her own neighborhood. every day at night our evening in through here the missiles in the mornings we hear the cries and screams of people oh i'm just playing it with a china sob myself up. i pass. the time air raid sirens continue to sounded israel with pension is particularly vulnerable to attack. me you all don't really know if. it's holiday in town that keeps me strong.