i know i actually thought of wearing my poncho for this because you know how the 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 the beginning of the pandemic of course we had food shortages now we also have oversupply in like you know money and treasuries and bonds all over the place that's why we have negative yields and stuff like that so we have also surprise signals mast and crazy times oh right the

crisis and the crisis begins that's the way used to be now there is just one 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 in your thinking is soft my 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 and had to work for their money we had said 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 a ford say to new york city drop dead 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. no

people were showing up with the 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 you're about to have total shortage right so this price signal is an important fact to wrap our minds around in how do empires collapse arab countries collapse and we saw fantastic collapse. with the soviet union and they had a similar situation where it wasn't about the price signal 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 it 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 so no price signals so it a collapse 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 rate 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 these price tag mills 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 course e.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 in 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 is selling here that there's no problem no shortage is plenty of supply $2.85 is only up like $0.33 since the 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 now i mean it's hard to get real information about it but what it seems like is 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 sometimes right well having a lack of diversity in competition in the oil business as a result of mergers and acquisitions on the floor novelization or all of gobble is a shell of the us economy thanks to cheap money and private equity and no regulators and no respect of competition or free market enterprise now going back to the 1970 s. u.s. 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 the. money printing in 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 money had be running out of the system so at that time in the seventy's america was not scared and hiding under 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 they're they fear the work has become

a 4 letter word in america again is the price they can all 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 enhanced unemployment benefits you're making over $16.00 an hour and that is a problem we saw that on this drive up to north virginia and back is 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 that kathleen asked nations 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 on line 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 general entropy and disintegration right it's like everything it's not one thing goes wrong everything goes wrong right well the problem with billionaires is not that they. 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 accent or etc they did so they achieved 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. when comparing the situation to then we're 50 years since the u.s. dollar began and a global reserve fia standard in 1901 when nixon took us off the gold window so full circle like we started this year saying the u.s. dollar turns. 50 is it going to make this year and of course the entropy sets then 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 0 hedge headline and that is radio 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 turning 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 yourself anybody could go do the drive if you can find 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 seventy's also featured disco and. a an 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 supported only came to the church of iggy pop who. pumped us out of the nixon malays so he had a new iggy pop for 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 iggy pop we have bitcoin and that's in the news because we've also been covering stan truckin miller he's been pretty active warning about this like he 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 the us 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 1 as a reserve currency will survive for another 15 years so again best 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 stan druckenmiller 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 you like 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 no this is causing all the money printing is cause for 10 years and he said the problem with such a bank's yes we did hear yet so stand 2nd milers 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 you would be losing money like ray dally oh 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 of ok he could be the new paul volcker look because it is the solution for all problems i see this on a curfew. in the middle east again you know everyone was on a pick line stander peace and love a break out and we can finally get over this curry easiness but you know every want to learn their own time and i'll pay what they deserve for because i was going to take a break and when we come back much more coming your way. by the demick knows you know born is just lying to nationalities.

this summer with the we don't look like seem. to be. coming very close is. that we should. everyone is contributing each of our own way but we also know that this crisis will not go on for ever the challenges created with the response has been so many good people are helping us. it makes us feel very proud that we are in it together. be 1st like on your own that is coming through in spirit. if somebody would have been put to spend my life to thank you get to the 2 story corps who would have sold it was clear. every night

we were attacked by the arabs we will attacking them and we will extremely shocked . saying that's not possible oh make those moves into such scenes and then the soldiers and myself can sneak into. the holes with all the pools of war we've all go over they all. believe much sick and close citizens in the. roost like lightning in my head that there is noone to be able to do to the.

welcome back to the kaiser in fort i'm max keiser time now to get a very special guest the end of all david morgan of the morgan report david welcome back i still 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 you 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 out based on your license plate of food in there with the even or not number lot of tension in the air a lot of uncertainty and were back at the same place only it's on a 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 what's going on the trip the world you're much more familiar with the me and the people that refuse to use the dollar than 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 time we face is from the crisis yeah exactly lots 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 it a way that to a global basis read a 50 year anniversary of 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 peace it's a that puzzle how do you approach that. well you know it's probably been overstated max the approach of based on the debt bomb you know it's all confidence it's complete clonidine if you don't trust the dollar 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 an investment basis is starting to wear thin as you well know and i think we don't have a lot longer i certainly wouldn't put myself in the same category as him grow 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 with the central bankers to push this theocracy even further and that's why you see the competing currency mean so strong with big corn 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 law is that too far of a stretch. i know it sounds very do me a 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 us that markets we might have

a stronger economy but once under the clinton administration on bipartisan i did all politicians but. i think that you know we have a different economy but once when 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 this continued to go down that trail and if it were good not a road i think you took it in the town down the road at the end right of course at the end of the 1970 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 the 1980 s. and particularly after the crash of 87 who are greenspan robert rubin and reagan interceded and start to buy stocks for their the house account in washington d.c. you haven't had crisis coverage 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 these 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 is transferred more wealth say hey. personally but views ing accounting fraud and market manipulation and s. 3 right is 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 tourists and he'll be gone him and charlie will be and they'll be gone soon hell what do they leave behind but isn't norma's garbage of

a mess it's disgusting i love your guts and you're on a senior straightforwardness match 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 you have to read. the repercussions of what you sow and we've shown bad seed for a long time we faked it we phony did it we are under it all of our control and now we're going after pay the price on a societal basis and the more you are 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 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 this complex societies have problems a compound you know when the oil doesn't flow then the transportation doesn't say when the people start hoarding then you get more fear in the system and then they start thinking well maybe 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've increased 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 dollars jackson to my friends am i being cynical or is 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 the fed the central bank they. 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 exact point with most mainstream economists what's hyperinflation most of us given our rule of thumb of about 20 percent when you have

to increase 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 like t.v. and say if inflation starts rears 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 200 or whatever this nonsense goes with the you know i phone 27.2 lot of that's just not is going to be here but a lot of stuff that we don't necessarily need to survive probably will come down to size which you could say is the place sherry but the stuff we really need to live is going to continue to grow our rights said david that for you know a long time we were told in 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 insulation rates based on how the calculation was done in 1980 if you use those metrics and use brunetti the 2 things people need the most you have about a 9.7 percent inflation rate right now and they can be so bold move on 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 this is pretty simple answer you have to look at what is a 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 that interest rate to about 9 percent because that's a true inflation rate when volcker came in interest 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 christ 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 then i should reemphasize maxed is they can't do that again we don't have the margin to do it you put interest rates up probably 4 by percent the interest as owed on the national debt would be so astronomical you can even make the interest but all right we're going to have to cut it there fareed over the 2nd segment david thanks back as the report my pleasure thank you and that's going to defend us edition of kaiser report with me max katherine stacy herbert want to thank our guest david margan of the market report until next time.

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york is really what america is about. when our mayor took office she was elected because of his campaign on our city being a tale of 2 cities the haves and the have not and those who have not are usually the ones who wind up being very hard out of the city has always wanted to forget about iowa city has wanted to forget about the people who are buried there wanted to forget about the fact that there is a potter's field but there is a place where difficult stories are hidden the fact they were using inmates to maintain this act is burial site where 1000000 souls are buried where so much of new york city history is fareed is the cement of the inequality that existed in this city for centuries.

the number of victims grows as. the 2nd week in the program we speak to a 10 year old girl who witnessed the destruction upon. every day and night. even here in the middle in the mornings and hear the cries and screams of people i'm just trying every day. myself but. i have. meanwhile. continue to cross israel with pensioners particularly. the time. when you have almost a minute. if. it's holiday time it's not what keeps me strong.