the the hi max carter, this is the cause report special summer solutions where we look at the solutions. i'm here with stacy herbert and we've got a special guest, stacy right out there, mccloud of gold money dot com. he writes amazing pieces over there and lots of blog posts, research, and all sorts of stuff. i recommend you check it out, your latest pieces out there are called too much liquidity and inflation assets and

consumer prices. so this is definitely the biggest theme of 2021, and that is inflation. even the u. s. federal reserve is admitting now that there is quite a bit of inflation. the numbers are over 5 percent of the official numbers that they report to the u. s. and however, 1st of all, is this inflation transitory as they say? or do you think this is going to be a bit more permanent? as the head of the central bank of russia has recently just said, i'm afraid it's a bit more permanent. johnson should concentrate. the problem basically is that you can see going back to march last year, how commodity prices just took off. and they took off at exactly the moment that the fed decided to do to a $120000000000.00 a month. and not only us, but as we come out of lockdown, we find 2 things. firstly, there's

a complete logistical followup. nothing is getting delivered. we went into it with just in time inventory management, which means there's nothing on the shelves. and on top of that, we find disclosure, the people having stopped working, they want to go back to work. so you can see that there is not the product available to match all that money been handed to the consumers. and the consequences, quite simple. prices rise and not only do they rise, but they will continue rising until that situation is sorted out at the minimum. but of course the moment translation continues, so will it ever get sorted out? i'm afraid that it's actually a very serious situation, and it will only be a matter i think of a month or 2, or perhaps even a few weeks before the currency markets begin to reflect the fact that interest rates are going to rise in order to protect currencies against the basement,

the way have st so far. so i think as far as the fed is concerned, i think they were trying very hard not to precipitate a situation which is already there. but i'm afraid it is. there. it is not transient, it is permanent, i'm just going to prove to be a supreme expensive for the consumer. so you talk about a $120000000000.00 money parting per month, or q way per month. so my question is this, you know, we, we came to an era of programs, various programs where there's q one, q, e to the tarp bail out after the 2008 crisis. but it seems like we fundamentally entered into new era where they're not even trying to create these programs or just saying if there's an automatic line item every month, 120000000000 printed. and so we ventured into a new era where there is apt actually, this is an outstanding feature of policy. now it's no longer a program,

it's no longer responding to anything. but it's the re interpretation of the economy from the very much from the most fundamental level browser. well, it's donated off in the wake of the layman crisis as extraordinary measures. and unfortunately, instead of the children imagine going away, they have continued and not any have they continued, but they've become yet more extraordinary. i mean, there's no solution. the problem it's, there was a phrase a little while ago about picking the can down the road. i mean, it looks to me, we're running out a road to kick that can done really, i'm afraid that the central banks gotten selves into one enormous mess on this. and it's very, very difficult to see how they can get out of it. and i know that i've mentioned before that really their objective has been to try and keep the show on the road kicked back, can down down the road as it were by puffing out baset values by ensuring that the yields on us treasury bonds don't rise the suppressed that we all get

a wealth effect from rising stock prices to which they've been our cryptic arms is, i mean, this does this so, so we've got to keep fueling the bubble. keep pumping the bubble and that's really what they've been doing. but of course, that comes a point where you can no longer do that, and this is the importance of the inflation message that we're getting because it, well me, the interest rates got arise. what happens to that bubble? the asset bubble collapses. it's as simple as that. now, as soon as that begins to happen, we then look and say, what is the fence response going to be? well, the answer is quite simple. they're going to have to up q a from a $120.00 a month to say $200000000000.00 a month. maybe 250000000000 a month in order to keep the asset bubble inflated. so, i mean, can we mention this? this is yet more extraordinary measures. it is absolutely crazy and there is

actually no way out. they basically run out of road the fed. what they do with this whole fed speakers is about managing perception, trying to stoke animal spirits. but this mind shift in the population, as he mentioned, nobody wants to work. they all got a little bit of taste of what it feels like to be a cancellation air. right. the fed gives you free money here. that is, the treasury is giving them free money and it feels life like who doesn't want to spend time with their family lounge around at home, watch daytime television get manicures and pedicures all day. like well who i don't want to live like that. but the point is that supply chain, like who's going to is china going to continue to send us stuff for this money? when like, it becomes more obvious that the fraud, the underlying fraud of the system is like here that the people printing the money . none of them are having to work like whose, where's the wealth coming from to back this?

well, it's the wealth comes by being transferred from a very people who it's meant to benefit. i mean, it's crazy if you, if you dilute the purchasing power of a currency, then obviously you're using everybody's salary savings and everything else. now, they're all compensating factors. if you use the dilution to puff up the asset values of one stocks, then people who got stocks of got a benefit, but the people who haven't, don't benefit of anything, they end up paying for it. and it really does disadvantage the position of everybody in society who is the lowest level. it is, it is the reverse of what socialism meant to do. it is it is financially crippling for actually everybody. i mean, the prices that are rising at the moment very obviously are of a central, i mean you're looking at energy for example, you're looking at the food commodities. yeah. like, you know,

live hogs and quinn know are, and all the rest of it, these, all the basic things that people need and not having to pay through the nose in order. so guess it. and the reason that this is the case is not because so there is so much as a specific problem with quinoa or with live hobbs or whatever it is. it is because the best thing part of the currency is going done. and the thing that's fascinating is that the keynesian crowds who of the establishment it does seem to spotted this, i mean, they just deal when they talk about things like copper prices rising, is always specific to copper. they never realize that it's purchasing power of currency that's going down because it's a common factor amongst all the commodity over list of commodities. so this is, this is not good. it really is. and the only way the progresses, while it 2 ways of progress is either the fed does something for which it has no

mandate whatsoever. it stands back and says though we're going down the wrong path, we got to stop this. we're going to stop money printing. and everybody's just going to make their own arrangements. now, i really cannot see that 1st of all, they've got the guts to do that. and secondly, that they've got the mandate to do that. and probably the mandate is the most important thing. the other alternative is to just continue accelerating printing. i just hope but you know, the problem, the problem with this printing, it's not so much a rerun if you'd like the presentations that we saw off of the 1st world war in europe. it's more of this john lowell situation, where they have specifically used the currency to increase its quantity in order to go into the market and buy stocks, buy bombs, and puff up arsic prices. and we know what happened with john laws, mississippi bubbled it best. and this is despite the fact that he was control of

the currency in france. he was able to print as many lever as he liked. and still the bubble pot. i long for if dust, to my mind is the precedent for what we're saying. now, let's talk about something else slightly. and that would be not only a failure of policy, but guess you could call it a failure of intellectual in that the model itself because you talk about there being too much liquidity. so the sand and the treasury are saying that more money printing would lead to more supply, but there's been expansion of production, and without that, there is no supply. because all the money print thing is causing to mis allocation . the capital, the supply chain is breaking down. and so the, the point here is that they, this is part of their, their model, their belief system. not, not only are they printing too much money and it's causing problems. but they also

suffer from acute mental dishonesty, intellectual dishonesty. why can't they just say that they're failing? why? why can't they see that? and why don't they correct their course? is it, is it faith? is it faith? it's driving us off the cliff or is it just rank suicide mission? i think it well. lemming, the lemming and instinct. i think it's it's, it's intensely human. i mean, when, when you are embark on a policy for which you have committed entirely, you follow that to the better read the even though there is conflicting evidence, suggesting that you should have stopped pursuing this policy. i mean, i've done this myself in the past in life. we've all done it to an extent when it's so much easier to observe it in others. and you've got this sort of thing, you know, all these guys on the f o m c. and we've got the equivalent in the u. k. here with monetary policy committee. you know, they're all reinforcing their own beliefs every time they make,

they tell the same story to themselves, almost as it is to reassure themselves that they are right and everybody else is wrong. and so i think the answer to what you're saying, max is it is an intensely human situation. and unfortunately, i just don't see how they're going to change from this. i think it's a great bit because they're just destroy. i'm just imagine if you suddenly got no dollars, if you have no dollars, i'm no dollars in the sense that the money doesn't buy anything. then you don't have any pounds. you don't have any euro because everything depends on the dollar. the dollar goes, it all goes, this is going to be if it happens and assuming that so they don't take action to stop it. this is actually a disastrous scenario. we're talking about, all right, we're going to take a break and only come back much more. 1000 mccloud, gold money dot com. don't go away. the i

the planets, and jupiter we found 25 years ago, took only 4 days to go around the stars, which means to finance is very close. so that was really the big surprise. and we have learned since then, own system is maybe one among many. that's not the archetype that's not the standard way to our planet. another shot because everybody was expecting the planet to look all the same as part of the international mega science with that project. neither is being built into, it's going to allow the scientists to study matter. they believe it exists is just the big bang, good form. ah,

there were more flu shane in the origin for the delivery authority here. the one you want to deal if you chose a country the montage moment some go out and we'll just go play that mika evolution 0. i hear from go that i don't want to even move this who just place could use that as the me the news the me welcome back to the guys report, i nice guys are time now to return to the sphere of london. the great knowledge

base i called money dot com, allister mccloud. welcome back to the part to all right, so after, let me ask you this. so what we're describing here, it seems like it's an institutional blindness. as you pointed out, there's a lemmings or jumping off the cliff, but we have some dissenters. so el salvador, a small country in latin america, has decided to adopt bitcoin as legal, tender. and the president openly says that money print things are fraud. well, the 3rd richest man in mexico has come out and said, money printing is a fraud. the dollars of fraud. there are also leaning toward bitcoin. and let's talk about russia. they divested completely out of us dollars. and you know, they're making moves now to suggest that they are concerned

about then other words, they've opted out of the system are days in good looking ahead into the future. will these 2 countries be remembered as the smart ones? well, time time will tell, but the one thing that is absolutely care, and for this, we must note what bitcoin has done. is it the last it people who otherwise would not be alerted to? what the central banks are doing? nowhere bitcoin or you know, another cryptic currency is an escape from this only time motel. and it's up to people to select the money rather than, let's say you were i or politicians in low salvador and so on. but the one thing that is absolutely clear to me is that people this time runs a learning fall earlier in the d basement process. that cur receipts all being debased. and i think the consequence of this is that once the purchasing power of fair current is rarely begins to decline, i think it will be

a far more rapid process. as a result of this understanding, we're talking about the summer solutions to this. so i want to ask you, is just the natural cycle of life going to be the solution i, we have a generational shift the ponzi scheme that the likes of us say that all the out us dollar world is that started in 1971 it turns 50 in august that the boomers in america are retiring, they've got these huge they, they own all the portfolios you were talking about, the stock market. the property markets are up 25 percent. they own the vast majority of these paper assets that have gone up tremendously. the new generation of the and miles they have nothing from that. so the revolution is that they're just going to opt out of that from, with bitcoin, with gold, with just a different lifestyle like that. and their vote, of course,

because as the boomers die off they, they have less and less impact on the, you know, politicians and how they allocate all this free money. so is it just, is that natural change in generation? is that going to end this ponzi scheme want them for all that could have something to do with it, but i think it's, it's a lot more to do with the fact that i think we look at what happens to manage translation, perhaps in 2 phases. we since $971.00, when we came off the last remnants of gold standards, they dollar has last certainly measured in gold bursting power over 98 percent. now, i don't think many people are aware of that loss of purchasing power. it has been a gradual thing and we have sort of managed to compensate for it by buying property carrying out property with mortgages by buying stops,

and so on and so forth. so we've managed through the assets to create an offsetting welf effect. now that is fine, so long as a loss of purchasing fair currency is a gradual and continual unvarying phenomenon. but when you get a situation where suddenly the purchasing power of the currency starts to cloning more rapidly, i think we enter a different phase. and this is what i'm detecting. no, i mean i can see that the amount of money that's being printed in the name of creating or financing the government's budget deficit is really taking monetary information into a new level. and this is likely to undermine confidence in his purchasing power. partly because of what we were just discussing now about the realization that modern generation exactly what the central banks are doing. and when this rarely

happens, i think the way then in a different phase, because you will see the asset values which protect joe in the past. start losing value, and they start losing value because it's a completely different set of dynamics. i mean, for example, when you look a property in a hyperinflation property moves from being a protector of for the individual against monetary inflation to being a liability. i mean, when your rentals can keep up with the basement of the currency, and when the cost to maintain property is greater than you can possibly afford because it is rising so rapidly, then suddenly, your property is a lot better. it's no longer an acid knox. there is obviously a value in having a roof of your own head. i mean there is a, the rich utility in that,

if you like. but suddenly you see that this, this, the, this huge, great fit. if we refer back to what happened in germany, back in 1923. what pushed up property prices in local currencies was foreign interest. you had foreigners who had dollars, which were convertible into go. and you could buy a very large house in a lovely sub berlin for a $100.00, which was slightly less than 5 onto the gold. and that was the sort of price that you're paying in the beginning of $923.00. and also there was dollars coming in the whole time because you had to speed economy. you had the economy which were ready from export, which and dollars coming in. you had the capital inflows from foreigners taking advantage of the if you like, the poverty of the middle classes. and they were able to buy property states, nor respite. now, this time around, if we have a collapse of paper currencies,

we don't have that foreign influence. so suddenly we're looking at something which is potentially a lot more disastrous than what germany experienced in $192223.00. now if outlined here, 3 point, so you're talking about us, our prices are protection typically by for the rich against inflation. but that could be running into trouble because in the case of property, the maintenance costs and etc are going to strip out or not keep up. so that becomes a liability, not an asset as you point out. the 2nd thing is that on the other end, you cannot make spectrum for poor people. this phenomenon that's happened with the money printing has, can come concurrently with, in the case of america, out sourcing labor to china. so in america, they don't necessarily, on the poor side, speculate on property, but they have a benefit in cheaper goods, cheaper electronics, cheaper clothes, cheaper gas. right now there's, that's the poor man's asset. appreciation is getting cheap stuff from abroad,

right. so you're saying that this is also now under threat because prices at wal mart and prices at the gas station or, or petro court as i believe you call it, are now going up for real. i mean even the, the highly manipulated c p i is that 5 percent and with the actual numbers at 10 to 12 percent. and so you've got to double side dilemma, which i think is different based than any other dilemma before. because we didn't have that great outsourcing of labor that came when with china became america, became the global factory. so i guess that's adding to your thesis here that even the hyper inflation of the germany in the twenty's could pale by comparison because of this kind of a double whammy to put it in colloquial terms. the ouster. yes. that's,

that's i think, right? and we can encapsulated with a very, very little observation, the law says that there will continue to be demand for human life centrals. i mean that's, i think we can all agree on. but when it comes to non essentials, which could be computers or whatever. then under those circumstances, then there's no point in manufacturing them if people are not going to buy, but so you can see that the vast amount, particularly services services in the chase will behave very, very hard by this loss of purchasing power of currencies. so again, back to solutions is the solution going to be the end of the us dollar as a reserve currency because underlying all of this is really that trip and dilemma. the problem of the trip and dilemma is that if you have a domestic currency as the international reserve currency, the domestic economy, in this case, the u. s. has run massive trade deficits with causes so much instability

domestically at home. but also in the trade situation, does that have to end to provide the ultimate solution to the situation and what is, what does it look like post us dollar? yes, well, i mean, the tripping dilemma always ends with a crisis because you are forced to, as a country providing the reserve currency, you are forced to undertake or undergo economic policies which are destructive of your own economy. and it comes a point where the world goes enough, and at that stage it starts going into reverse. and we have this now. i mean if you look at the treasury tick figures, you'll see the foreigners and $31.00 trillion dollars. that's one and a half times us g d p. now this, under any circumstances or on the any analysis is far too much. so we know the problem is how do we stopped selling it? and the only way we'd stop selling it is to pay them in an enough interest for them to hang on to that dollars. but that destroys the markets. and this is why i feel

that it's a very different scenario as far as assets to confirm this time run financial assets in particular. but it's also true of residential property, other property, and so on, so forth. i mean, i can remember not even in this sort of situation, but back in 1975 in this country. when the banks were bust, you could have bought an office bought block in london in the city for nothing. why? because somebody had to pay money to keep the utilities going in that office block . you know, that is the sort of situation which we run towards when money actually buys you nothing. i think the way it will come out of it is that central banks can only do one thing. you have, the collapse is not at all at some stage. central bank say we've got to mobilize alco reserves, and they then turn the currency into credible. i mean,

it will have to be credible gold substitute that will stabilize the situation, but we're talking about perhaps in dollars the go price, bear with $300000.00 or something like that. i mean, this is a long way from where we are now, but it can happen very, very rapidly. i lived in london for a while and now the property ladder is almost religious sperber. is that mentality changing in the u. k? or are people still dying to get on the property ladder? still dying to get onto the proxy ladder. and this co good thing in the suspension of stumped duty has just driven prices up, hugely. but also note that price is probably price isn't a biker of driven up. it's if you'd like the initial effect, i think, of monetary d basement. but there will be that secondary effect when the d basement rarely hits . and people then begin to think, well, i've got an investment property here. i've got to sell it in order to do it. i mean, yeah, we got to hit it. thanks so much. alex mccloud from global dot com for being on

kaiser report. that's my pleasure. all right, and i'm going to do it for this edition of kaiser report with re max kaiser and stacey everett want to think, i guess, from mccloud of gold money dot com until next time by the me. ah, today industry prefers been millions of euros in all the regulations. i will be all about making money. i think it's about big corporation, international markets. import export. do you imagine the number of the diseases are in every family today? it's, you know, due to new viruses or new microbes, not true. so it is due to environment. they're not going to take either the momentum. they simply command on much time with the security guard only come in

today. mostly they don't allow us. the food industry is successful for create more jobs, it will create more value added, it will create more. so i don't see why we shouldn't also fight for the interests of the industry that we have regulation. we want the regulation as the industry. and if we don't have, then yes, that's fine. the last, the end appears to be near washington's 20 year. however, to nation bill and f denison was always going to end this way, a complete and total failure. it is doubtful. the corrupt government in kabul will last long after the american withdrawal of dennis and remains broken and the american people poor and no one is held to account. the

headlights are on our team and us president joe biden admit the taliban is stronger than it's been in 20 years. that doesn't mean afghanistan will fall to milton. declaimed america's mission in the country has been accomplished and it is time to go home. the higher is refusing to reveal to algeria the locations of radioactive waste dumps 6 decades on from colonial frog conducting nuclear you toast tucker carlson claims vienna. they spied on his communications and leaked private emails to journalists, alleging that is all because he tried to get an interview with a russian president. ah,

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