the the news tragic news from russia. one woman has died and 18 other people are injured. after a blast tore through a bus in the russian town of roneesh, officials are yet to identify the cause and i witnessed it says the explosion, the vehicle strictly hard. the explosion was very loud, so loud i was deaf and for some time and the plus pressure was so high that my car was almost pushed to the other side of the road. taliban says it has seized that 2nd and 3rd largest cities come to her and to head up with the militants wrapping up in their country wide offensive. amid the u. s. troop withdrawal and firefighters and volunteers. battle huge wildfires and rushes far east where

a state of emergency is enforced. smoke and ash have coated huge areas, are corresponded in the secret firefighters have now created this mineralized zone . this and basically the whole purpose of this is that the fire, if you could see it still burning there, you will not be able to pass beyond the stone that does it for me this hour. kevin will be here in about 59 minutes time with the full and fresh news. this is our international. we know you have a choice and where you get your news and information about your with us the max kaiser. this is the cost report. we're going to be talking about some us regulators. yeah. might be interesting, stacy? speculative assets. it's all speculation. right, max?

well 1st of all, i want to say went last week we saw the fcc chair gary gansler. he was on cnbc and what he said was that fcc chair against lar, bitcoin and other crypto currencies are speculative assets. crypto needs investor protection rules. the point is 46000000 americans own bitcoin. right? so this is huge percentage of the population in this is what is targeting and talking about. the other thing is that he's lumping bitcoin and kind of like it's kind of confusing to, especially the way something like cnbc would present it in that he's really 2nd by defy and their london platforms. and the i, c o is and tokens, which could be argued are indeed securities. all right? that's true. they know you've got big coin and then everything else is you could call it a security. so it would fall under the purview of the se, se,

but you don't remember the fcc track record and doing are supposed to be doing, regulating as pretty bad. they knew about the bernie made off scandal, years in advance. they had 3 detailed forensic examinations of that scandal going back years before he was arrested, never did a thing. of course, they were up to speed on other problems in the manipulation of various other markets, the short selling scandals that are on our game stop, for example, that the naked shorting is illegal. the fcc has no ability to push back on that. so it's what's called a captured regulator, it's pay to play it a little dash out the window up the up, you know, write a check and you get along with the guys the venal. well, the interesting thing is of course the c f t c chairman also did his, the commissioner jumped in on twitter and said, hey, scc back off a bit. coins are territory, not yours. it's a, it's a commodity. well, as we said 10 years ago, that big coin is a new asset class completely. it's

a little bit like a stock of bond, a commodity currency, and it's none of those things. it doesn't fit under any regulatory umbrella. they've been struggling for years to figure out, well, who should regulate this thing and even today, in 2021 with big client doing billions and hundreds of billions of transaction, the fcc doesn't know the c s t c is doing doesn't. now, and this other regulator is doing that, and that is the cloud of confusion by anyone who tries to ignore the facts about the claim that it's taking over from the money. it's replacing the central bank, its unconscious cannibal on sensible, immutable, perfect money. and those guys, you know, they can fight it and go insane people who fight brick line and go and say like an i seem to love for example, or john mcafee to people who fought bitcoin and went insane. and a guy gansler, if he continues down this path a year from now, they'll be locking them up and already been, but we're also going to talk about other speculative assets. and one that is not considered to be a speculative asset, is the us treasury bonds. so we're going to talk about that and how that is become

a speculative asset. the 1st, in terms of big point, i want to say that, you know, it is a speculation in a way you're speculating that it's the end of the system. and i think it's a, we think it's a good bet. but everything you do is a speculation right here when you walk out in the street, when you cross the road, you're speculating that somebody is not going to run over you. and they're going to obey the laws and not hit you and things like that uniquely. and crucially, bitcoin is actually not a speculation because it's based on thermodynamics and mathematical equations. and the fact that 2 plus 2 equals 4, and that it exists in a world of the money that's being printed to infinity. so we know that one thing, all the money is guaranteed this model speculation, it's guaranteed to go to 0 and pick coin to guarantee the small speculation to increase purchasing power in many terms. that's a guarantee that's not a speculation. so let's look at the speculation that is behind the us treasury bond,

cuz this is a 10 year treasury chart. and it goes back from the eighty's and you see a clear channel all the way down to the point now where, you know, most bonds and how far are trading in a negative territory, at least in real terms. and the us, the entire yield curve is close to or indeed a negative in real terms if you subtract inflation. so then all of them make an interesting points regarding this because now it is no longer in investment. it is a pure speculate. speculation. you're betting that it might even have further to fall and she puts it this way. and other words, i literally, without exaggeration, speculate to own some dollars federal reserve liable. these or t bills. us treasury liabilities in the chance that these things will spike and value a k risk assets decline and value allows me to buy more valuable things. so if you're holding it, she's saying they're that like you're, you're all,

you're taking the gamble. that stock market crash or property markets crash, and then you'll be able to use those decline and value units of account that treasuries are the dollars and buy more of the assets. the hardy assets like property or, you know, a stop at a cheaper price. so that's why that's the speculation you're making by holding those. because if they are yielding negative returns and then she goes on to say in previous errors when cash t bills yield at higher than inflation, it will serve as both savings and optionality. the optionality being you, you're saving it to have the option to buy something cheaper later. now as deeply negative inflation adjusted real yields, it serves as optionality, but not savings, and not falls into a weird category of low volatility speculation. not this too broad classes of security stocks and bonds. you know,

a company raises money by either selling equity in the form of stocks and therefore diluting the owners of the company. or they can sell bonds, where they're going to not dilute ownership by the parent company, but they have to pay quarterly dividends to the bond holders. a bond by definition pays interest. okay, that's what a bond is when bonds like treasury bonds and i believe the yield curve in germany right now as a negative across the entire government bond spectrum. then it's a misnomer. and global regulator should come out in force and make this change. you cannot by law holiday bond. ok. i know having a study the security fact of 3334 as a registered stockbroker and financial advisor going back from the years, 1983 to 1990 and having sol billions of dollars with the securities and being compliant with all fcc regulations, i can stay categorically that these pieces of paper that are being sold of negative

rights cannot be called bonds. that it, you can, if anyone wants to organize a class action lawsuit and go and make a few $1000000000.00 buy this professional miscarriage, and malfeasance. they certainly should do that. these are not bond. these are essentially speculative as, as carry again far because they're, they're, they're confetti, it's being confetti that's being sold. and the government is claiming that this confetti has value, but the government is sitting on the debt to g d p ratio. they can never be repaid, even if they charged 100 percent of all income and taxes ever. right. the think it's nothing. i mean, i mean we make joke about tearing up money all the time and saying it's worthless paper. but i mean, this is the actual truth about what they're calling a bond. it's actually by definition worthless toilet paper. you could literally

reach and your toilet ball reach out a gob fecal matter and have a great resale value in as a commodity. the nuts in that fecal matter would be valuable to squirrels on a basis greater than a us treasury bond with a negative rate. that's a fact. right. and just a reminder that the german bonds across the entire yield curve art is negative and nominal and then certainly deeply negative in real terms. lynn alden does provide the chart from the fed of that real rates. so nominally you're being paid to borrow, you know, to lend to the u. s. government. but in real terms minus inflation. it's deeply negative. it's a speculative asset, and it's miss allocated capital across the entire spectrum. and i want to look at just a few headlines regarding this mis allocation of capital. first of all, one out of every $153.00 american workers is an amazon employee that's on top of

even with its massive scale. amazon is still a distant 2nd to the country's largest private employer. wal mart, which employs nearly 1600000 people in the u. s. or one out of every $91.00 workers . so this sort of low wage economy is a direct result of this sort of mis allocation of capital and the us dollar system, which has caused the trip in dilemma which has caused us to abandon hard money and then cause us to export our manufacturing. so all that's left is, is very low wage jobs, where you rely on that. and thus you need a lot of inflation to basically disintegrate that, that le cares a trip the i estate prints trillions of dollars that they send to chinese workers. and chinese factory owners who make the world goods that they shipping containers into amazon warehouses and wal mart stores where millions and millions of americans

work at a less than survivor wal minimum wage. and our for the 1st time in america, life expectancy is going down. so they're dying, that's the way it works. now folks that, that's where we're at, and that's what the die off in america is happening. and that's also a fact. well, the interesting thing is we do have the stimulus checks. people are choosing to instead, stay at home for the equivalent of about $17.00 an hour, rather than go to a job where they have to, you're in a, in a plastic bottle at an amazon factory. on the other hand, we have the coven pandemic, still ongoing, and importantly, really unfolding across asia, which has been making all the goods for us to be able to stay home. so, vietnam, thailand, china, china, starting to get hit as hard by the delta varian as well. so whether or not they shut down, we already have supply chain issues. we've,

we've been cataloging that over the past few months. so whether or not that happens, we'll see, and i want to quickly point to on top of all the inflation, the more supply chain issues. and this is pretty alarming. airports from nantucket to california suffer jet fuel shortages. so this is largely to do with the shortage of drivers for is there's no shortage of actual jet fuel. there's a shortage of drivers to deliver the jet fuel to the airport for a variety of reasons, whether it's from the stimulus check. it's also because of new regulations that came in, whereby if you had ever been charged with drunk driving or a possession of any drug, you are not allowed to drive that knocked off tens of thousands of, of drivers, of able to drive the specialized tankers to deliver fuel right, well big thing for 2021 we mentioned at the top of the air was dig a level to zation due to supply chain interruptions, and now we're saying it for in real life. so the,

that also adds to inflation very pressures in terms of scarcity. so how much will people pay for toilet paper? you know, we say we, we know that they'll pay a lot for toilet paper, and then we'll call it inflation. but if you're paying $500.00 for a roll of toilet paper, that to me seems like inflation. what i think you're describing there as a speculative asset, you're saying that toilet paper is a speculative asset. let's watch this part of the show and go to the break. when we come back, watch, mark coming your way. the me ah, ah, ah, lose

a lot of the the british and american governments have often been accused of destroying lives in their own interest. what you see in this, these techniques is the state devising message to end to essentially destroy the personality of an individual by scientists means this is how one doctors, theories were allegedly used in psychological warfare against the prisoners deemed a danger to the state. that was the foundation for the method of psychological interrogation, psychological torture,

disseminated within the us intelligence community, and worldwide among allies for the next 30 years. and how the victim say they still live with the consequences today. the me welcome back to the kaiser report, i max kaiser time, not to return to our conversation with mark invalid of increment tongue mark, welcome back i'm. it's good to be back. all right, well like all fears and wonder is thinkers and men of our times. you calling phrases and invent language and things like that. you've got a great one here. you've come up with monetary climate change in relation to what has happened since the pandemic tells about the monetary specifics of 5 profound economic changes starting with government as big spenders.

yeah, so a monetary climate change that was the motor, more motive of this is in go with trust reports and monitoring. so i'm a change i think has been going on for quite a while and has been in cruise increasing. so especially triggered by the cobit stimulus. and basically the big, big government's standing spending, which has been going on again already since the financial crisis. but also again this time has been shifting up. it's $11.00 or 2 or 3, not just so government is now responsible for taking care of basic moral as everything i almost had to say. so the perception of, of, of the responsibilities of government during this time, the pen pen, the pendant and amendment is, has, has increased so,

so governments spending just exploded us that i think within 2 years went from slightly over 20 trillion to almost 29 trillion and this is also real for all the west on countries. so the government that this exploding and this is being enabled by central banks which have been printing money to finance that explosion. ok, so government has been expanders, but you know, as we talked about the previous episode that people can learn about if they can do a simple search online. in the case of germany, the yield curve has gone negative, so negative rate rates are now all across the spectrum in germany. so government has big spenders, the money that they're spending about, their friends, their pet projects, and their boon da goals. so that's not necessarily government is big spender, right. us government as big lar, sadistic faith, mark. yeah, well, the,

the government can produce anything. it can only real ok resources. i think that's a very important starting point. so it can take some resources from the productive sector and, and, and reallocate, and usually it's inefficient by doing so. and also obviously it's a political process and a lot of people benefit to well, connected to the government. so yeah, we can, we can argue that this is kind of safe, which is going on. i mean my, my personal view and that's obviously then gets a little bit political. i think government that works best if at all is a very small region on the regional scale. i really like the swiss model where, where really the regents can decide what kind of relocation takes place and you have some kind of a social control. if, if these resources are being sworn,

those are really something sensible is being done with it, but the more relocation goes on, the higher scale, the more wandering probably will take place. and the more corruption basically will also take place during the process. so that's, i think, very critical, right? you mentioned this with model the various canons in swiss and the way you're describing there is that there are somewhat in autonomous and they have the ability to make policy. and in america, we have the states and the states also are somewhat economists that we have the ability to make policies. and a lot of laws are found on the state level. and then they work their way up to the federal level. but in the e. u, it's one big top down, federation run out of brussels and it's a one size fits all policies that don't work. so let me, let me ask you about point number 2, you make under your monetary climate change, essay or tweet. you talk about the monetary and fiscal policy are

merging. ok, this is very interesting. what does it mean? yeah, so since the demand for big government obviously is here at least government just implemented it regardless of the demand this year last the monetary policy really needs to enable this huge spending spree and the us so so it's been more and more actually in that i think is being quite a game changer demanded by by central bank because in fact that the government spends more more money and funds and resources. i mean, initially for instance, again, if you take at least a conservative sandra bank like the bonus bank or even the c p in it's early days, they were kind of ob and joseph some somehow of fiscal conservative.

conservative isn't, but this is not going on. so actually these presidents of the central banks, we said to, to the states, go on and spend more, we need the spend spending programs so, so, so the world really has turned upside down and, and really the state and the central banks act into who's that's at least of you. right, well i know in the united states there's no pretense of a separation. jana gallon is now a treasure, a part of the cabinet. she was formerly at the federal reserve bank, she and j pow run the economy. there's no separation of powers. there's no independence, it's run directly out of the treasury now, and the treasury authorizes the money spends and then the federal reserve, prince, all the money that is authorized. and we've got an absolute catastrophic situation as a result. so this is happening all over the world, is what you're saying. essentially, in all these banks around the world, the central banks, they don't act independently, either. they act as one, they are

a pos, they are in collusion correct rides. i mean, they have formal and informal meetings and they, they meet regularly. so they debate what they're going to do. so basically, i think again, that goes back to the fact that we are living in an, a debt based monetary system. all of all of these central banks tried to orchestrate this piling up an inverted pyramid of that and they are, none of them may lead to a period jeremy implode, because that would mean it's a, it's a deadly that inflation, which would be very unpleasant. a granted, so the only opportunity they see and perhaps the only a put into the system gives them to grow this pyramid higher and higher so. so this is basic in the game. they are all in and they coordinate this, this kind of,

that central banking, a monetary expansion together and they're trying to manage it as well as possible. right now you also have listed under your monetary climate change. new tasks for are being introduced for a monetary policy, elaborate on this mark, but perhaps the most obvious one, at least the most local one, which we are hearing here in europe and i was the think it's very similar thing in the u. s. is climate change? i mean, the topic is only present and may be, rightly so may not be rightly so, but the point what which we want to try to make is it's, it's really beyond the scope of a central bank to, to try to make the comments in this, in another direction and the more tasks central bank takes on the less

probably it will focus on its initial and main task which it really can manage, which is disability of, of the, the currency of the burgeoning power. so we see this very critical, and that's also that led us also to choosing that somewhat provocative title of monetary climate change. we want to point the spotlights to the monetary system and to the sustainability of the monetary system. as nobody's talking about that. ok by central banks only have one tool and that is to print money. so that means ok, the indonesian boxing days to nami, of a few years ago, that devastated the region and help people we to understand now that christine in the garden, jerome powell, would be on the beach, is throwing money at this. tonight, me to stop. it is, are they really that insane mark? are they there? are they just playing stupid?

no, i don't think they play super the i think again, i think the root cause for, for, for this actually is, is this that based nature of our current system, they actually are doomed to increase the monetary supplies and due to increase the debt. because if they don't they, they will pay some kind of implosion, some kind of a deflationary implosion and let deliberately not be feasible. and that's why they have to inflate. they only can go forward, they have to inflate and hide the inflation whole. nobody seems to inflation, but i mean, it is pretty obvious by now already, and i think the longer the situation keeps being this way and the longer this inflation number keep being that elevated, then perhaps even keep increasing the other. the past will be for them to hide this

on sustainability of the system, right? we should know and let people know that when they talk about transitory inflation, they're lying because the loss of purchasing power caused my money printing is permanent. that's why the purchasing power of off the money has collapse bye. between 99 and 100 percent for the last 300 years without exception including them . the british pound. ok finally the new ice age of cold war 2 point oh this sounds dicey. tell us more. yeah, i mean that has been building for probably also a few decades or obviously got very, very obvious during the, the past us administration from president trump obviously made china a huge topic. and some of the analysts or commentate observers, so that that may change with the new administration, which in my view did not because it's a cheer pull it picking a striking for,

for supremacy at the end of the day. it is also, there is also begin to play between this the monetary system, actually the u. s. dollar centric monitor is them. so we are of the opinion that this, this new kind of cold war situation is, is, is also part of the monetary climate change. since you have this new and some to some extent old blocks again polarizing and, and we see as we saw in the case of russia, very evidently, russia didn't. that doesn't hold any us dollars anymore. china is decreasing the holding of us dollar reserves. and this is, this is going to have repercussions or so again, for, for the dollar and for the stability of currency. hey, thanks so much. bring on cars report. you're welcome. thanks for having me. all

right, and that's going to do it for this edition of kaiser report with me, max kaiser and stacy herbert want to think, i guess mark valid of incremental come until next time via the me ah, me by the make know, you know, borders and my number is emerge, we don't have authority, we go to the back seat, the whole world needs to take action and be ready and not a joke. people are judge. 2 governors crisis we can do better, we should be better. everyone is contributing each in their own way, but we also know that this crisis will not go on forever. the challenge is paid for

the response has been massive. so many good people are helping us. it makes us feel very proud that we need together in the and annex painted upside of the pandemic. kenya's experiencing. and elephant baby boom, $250.00. why does kenya have so many allison carves and how has the panoramic impacted people's lives? is andree will have fairly big long in any fact he end up killing himself. i don't live on a lease and then you go buy a car. well, and i will make a little was let me get, you know.