the man who for several hours threatened to go, he had enough explosives in his truck to destroy 2 blocks near capitol hill, surrendered to the police. his ex wife says he was mentally unstable and was upset . my trumps to trouble airport these more as a desperate parents trying to pass their children to us soldiers and hoping to give them a better chance of a new life. and the u. s. military reportedly used to got to the 1st of those matching at the air field saying that the risks being overruns and those are headlines for this. our, my colleague worries you shall be here in about an hour's time with a full fresh look at you know, this is art international. glad have you the

i am max kaiser. this is the kaiser report. we're going to follow up on something we've been talking about for a while and that is lack of leadership, but never ending money print thing, stacy? well, you know, the thing about the trip and dilemma as we have covered, is that this was predicted since bretton woods is that there's always a class between domestic and international policy for the reserve currency because you have to print money and you have to send it overseas, so 1st you get rid of your goal, then you get rid of your manufacturing. so we got rid of that we with, when we got rid of our manufacturing here in the united states in order to support the us dollar as reserve currency. one of the problems is that we no longer really had any sort of domestic policy other than money printing. so this,

the failure of this as being really seen during these global ongoing locked downs over a year and a half into this global pandemic. and so i was asking myself like what would have happened to hoss had trying to not shut down last year? like we got all these thousands of dollars and stimulus checks and most people bought durable goods, washing machines, refrigerators and stuff like that from china. well, we're seeing the clash now between money printing and supply chain. so supply chains hash tag. this is from chicago girl and she's retreating. the story about worlds. second largest container, port mingo z, shan in china, has shut down due to 100 case of a fully vaccinated port worker. serious disruptions to global trade and supply chains are feared. this is the problem because of the fragility of global tre. now we did talk about the idea of d globalization and d dollarization back in january and or seeing the ravages of such an outcome,

play house in the past covered world. and i guess the question is, what would have happened if china in the, you know, had taken a different course of action? i guess the question is, what happens now? the china is vulnerable to shutting down in that? that's the question. right? yeah, yeah, because the delta variance is way more infectious, spreads faster. so it looks like they're going to try to contain that the same way they did last year. last year. they were very successful at it and kept on being able to manufacture and ship everything here. but we're already seeing really high inflation numbers here with the supply chains that were fragile over the past year . but now they're even going to get more fragile. and of course, the white house has mentioned so white house economic advisor, d's says white house trying to address supply chain issues to help curb inflation in an m s. m. b. c. enter you. what can they do? right, china? if they get coven, they're going to have to shut down, right?

so somebody's going to have to do this production. we already in order to maintain the dollars us reserve currency. we had to, of course, send our manufacturing overseas a long ago. so the whole rebuilding supply chains here, which we said last year 12, while 1415 months ago, everybody in the news is like, we need to have some supply chain here. we need to restore some manufacturing that never happened in the whole year and a half. we had to start planning things and so we just kept throwing money because that's the one single way they have to address every thing. well, i'll give you a very stark reality check here. so the washington just is in the process of passing a multi trillion dollar stand stimulus check. i'm sorry, infrastructure bill, which is aim toward that was, should be, you would think at this exact issue. but for some reason it's get held up because of the one or 2 paragraphs that relate to quote,

quip crypto currencies. because why? because they coin is a threat to the us dollar. and the us dollar is the basis of the us empire and all the data. so stay with the us dollar and it trumps any. have the anything to do with manufacturing, right? it's all about keeping the ponds is game going because threatens the policies game . if in fact the right administration was, wanted to solve this infrastructure problem as it relates to global supply chains and infrastructure and that the bill would have been timely and well received as a way to answer the problem that the u. s. as no domestic manufacturing and is entirely reliant on china, but instead they appease the bankers. i said, let's hold up the infrastructure bell for a couple of paragraphs because we are scared of bitcoin and it might threaten wall street and wall street gives us all the money we need to continue our, our reelection campaign. so it's really starkly laid out for anyone who cares to see it. right, well they pass that $1.00 trillion dollar infrastructure bill,

and they're now introducing a $3500000.00 budget. so we're going to go over this, but again, like the fact that the, the elite have no answers for the deplorable other than money printing is the equivalent of let them eat cake. they're just throwing of fluff at them. that like a donut brioche that doesn't actually have any nutritional value and longer because there's nothing backing that dollar any longer. and what like, even that whole crypto currency thing that was introduced into the infrastructure bill when it was really how it was being able to introduce, restore the deduction for the wealthy people of california and places like new york where they have a high property taxes to sustain all those years, like infrastructure, they're all the welfare benefits, all that sort of like, you know, democratic policy in those states, but they get to right, those huge. if you're, if you're paying $100000.00 and, and, you know, property tax on your manhattan apartment, that costs like $3040000000.00,

then you get to write it off. it gets your federal taxes, but trump ended that salt deduction. and so they were, they kept it at just $10000.00 that you're allowed to write off. so one of the reasons why they want to introduce the script when they want to take $30000000000.00 from crypto currency sector, an order to give the cover the $50000000000.00 that is going to cost to give the tax break to these wealthy democratic voters for the most part, so we're going to go into this, we're going to look at this, have mind about the more money prancing and white of all of these, you know, the best, the supply problems happening hours after the u. s. senate approved a $3.00 trillion dollar budget blueprint aimed to ease the financial stream on american families. new fishers emerged between the modern and liberal wings of the democratic party over the size and scope of the spending. now quickly i asked in

our treat response to this, reuters pace define this financial strain because household incomes are at all time highs and consumers are an unprecedented spending spree, stock markets and property prices are all time high as well. so why are we blowing our wod during boom times is this just for mid terms or pansy economics? yeah, here make a good point there. they can past me, emergency bills for the crisis, but what crisis the stock market all time i property markets all time. i bond markets all the time. i, what prices are they talking about? the crisis is that they've got a few folks that are missing payments on their turn. ready for the yachts. that's the crisis, but they need more free money from the fed. i also think it's like that turnover moment where the scientist, they're like, everything, it's all fine like there's a meltdown behind them. and like we're containing it, the same thing here is like they, they know the policy makers know. i mean, these guys aren't stupid right?

there are economists and they've been trained and they know that their academic papers are wrong, and they, they see the data and they know that all they could do is print. and so they're trying to convince people that more money printing the money printing will continue until morale improves like they need. they, they know you can't paper a ponzi, right? they know that this is the end game of it. but the problem is, for us, i think, is not only the supply chain issues that are happening and the inflation that are starting to set in around the world in the inflation mindset. but the stories coming out of china makes you very concerned about, you know, what happens next? because if there is a disintegrating empire because of what they said at the shop of a rising empire, rise in power. and china seems to be doing their whole treasure fleet. situation again, so just so you know, for what happens in the with the treasure fleet of china, is that 500 years ago china destroyed its world dominating navy because its political elite was afraid of free trade. and the 1400s,

china owned the greatest c going fleet in the world, up to $3500.00 ships at its peak. the u. s. navy today has only 430. some of them are 5 times the size of the ships being built in europe at the time. but by 1525, all of china's treasure fleet had been destroy, because the political or we were afraid of the, of the actual entrepreneurial business elite. so they destroyed that, and that seems to be going on there again. and of course, china did think then for the next few 100 years, that's the key point. there. the, the china went into became the hermit kingdom, or hydra disappeared off the map after they did that for many hundreds of years. and so they have a propensity to commit financial suicide. when are they doing that again today? because the lead sphere, the rise of the merck and class, the jack mar,

for example. you know, he's been shut down because the leads don't like that kind of competition. are they going to do another burning of the fleet? yeah, that's a good question. as you know, everybody's kind of counting on there's being some big economic forks out there to keep the global trade global economy alive. so if you're going to burn your treasure fleet, of those social media, you know, huge companies like those successful, successful companies like tick, tock or, and financial in the financial sector. or now they're taking down private school owners. we're forced the hand over institutions to the chinese state. so there's like a lot of really successful companies. it's hard to know what's actually coming out of china because there's so much fun in the western press coverage. but you know, we need to get dan calling on to talk about this again, because it does seem like they're burning down their treasure fleet. again, remember right after they burned out, they burned down their treasure fleet, right?

when florence then became the renaissance, the age of discovery, all the vastness and greatness that then the next 2 centuries were european. right? so they handed it over to them even though you know their ships, for example, or 5 times larger than what? you know, christopher columbus had used to sail current before the english british empire, ruled the seas and the son percent on the british empire. that was true in china. 500 years ago. they had effectively conquered the globe through a massive global fleet of ships. they burnt it to the ground because of the elite or paranoid that there are losing a celebrity status to the captains of the ships. yeah, yeah, yeah. they were the, the, the unit generals that were, in fact, the unit general, who was the king of the treasure fleets. his name was admiral zang. he and he was actually wiped from the history book. nobody knew about him for a few 100 years because they erased his name from a history book. wow. that's like

a double unit yet. so just to put this into context of what kinds of report covers in terms of the force turning of the they sit at the shop of these cycles that do happen. but then something like this. a treasure fleet moment where you burn down your source of well the u. s. did the same thing. they that what, when we went off the gold standard, essentially, that was a treasure fleet. moment we were, you know that that's the 5 and power after world war 2 we and now china is in the same place. post coven. wow. oh, wow. yeah. well, we're going to take a break. and when we come back, much more coming your way. the me ah ah ah,

ah ah, ah ah, ah, i so what we've got to do is identify the threats that we have. it's crazy for patients. let it be an arms race is often very dramatic. developments only personally, i'm going to resist. i don't see how that strategy will be successful, a very critical time. time to sit down and talk the me welcome back to the kaiser

report. i'm back time now to return to our conversation without a cloud of gold money dot com. ouster. welcome back. nice be back next. now we're picking up where we left off are talking about a pretty seismic event in the gold world. anyway. this is new bible 3, a guide answered pertaining to leverage in the system and derivatives and then the stable funding ratio will be adjusted. and so this has implications for all markets, all banks. and of course, goal is still base. money is still a tier one. money is still the basis of the global banking system. now, even though we don't have an official gold standard as such, it's still the currency, the money that's used enter the central bank. it still does subtle all global business at the end of the day. so just to get into some of the finer points there, what's, what's the difference between forwards and futures?

so it's basically a bilateral agreements between 2 parties dealing in the not in solar, on standardized count contracts, whereas futures are standardized contracts on the regulated exchange. and i think the important point to understand is those funds which and investors and investment management businesses who are regulated well deal almost entirely on a regulated exchange. anything they do and they're but the count, the market is very, very limited. if they can do is told so that 2 completely different markets and the participants in the same market are basically, you know, high net worth individual sovereign wealth, central banks, other banks, and so on and so forth. so one is regulated the other reasons. one is standardized and the other isn't forwards. it's just not that one other word for over the

counter market. these are deals that are negotiated between 2 parties and they're not on the formal exchange. and so this is banned. let's, let's look at the 50th anniversary of the nixon shock, which happened on a sunday night, august 15th $971.00, the end of bretton woods effectively. recently the m f called for a new bretton woods. alrighty, what's, what's your expectation there? when you look at what the central banks are trying to do, you can see they can lost their way. they've got themselves into a bit of a cold sack and they're wondering how to get out of it. what we have had is, you know, from the end of the bretton woods, and particularly from the 1988. he's onwards. we have had banks moving from doing what they should be doing, which is lending money to businesses to expand their production and all. ready the rest of it, they've stopped doing that. what they stocked expanding in that direction. they've expanded into purely financial transactions. now that ended up with

a blow up if you like, but the layman crisis, very, very obviously there was a sheet risk of complete contract contagion throughout the world from that blow up . and the authorities, if you like, in the form a t 20 instructing the bank of international assessment said we can't have this risk, please deal with it. so the basel 3 regulations are the results. but now it seems to me that what basel 3 is actually doing is it is limiting the further expansion of banks into the financial activities effectively calling a whole to that expansion. so we've gone from the situation in 1971 going off bretton woods then we had the face in the seventy's and then we had all that sort of financial stuff that is now coal bin, cold killer,

hold. so where the banks go, i think that what the central banks are now doing is they're looking at a reset, if you like, which will probably involve central bank, digital currencies. now this is something that they would be planning to do over a period of time because no central bank can introduce a digital currency without massive testing and all the rest of it. so that is not something that will happen very quickly. but do note that the bank of its national sacraments is coordinating all the research on central bank digital current space for the ho central banking system. so you can see that the 2 things appear to be tied together. and i think that's what is evolving is a potential escape route from commercial banking, providing the expansion bank credit for business in the general sense to central

banks getting more involved in it. so we could find that if everything goes to plan, which of course, it is another issue that over the next 5 to 10 years, this social evolution as of current commercial banking as being central, if you'd like to a fed monetary system that is probably going to come, we're going to see that's coming to an to see where i think that roughly is the sort of game plan does. some of the major central banks have. so in other words, you know, they've been making all the credit available to bank spent. banks have not been lending right money velocity is collapsed, so your central banks are the bank of international. so i'm sorry, the, the b i s simply saying that calling time on these bank the saying we're actually going to just come up with our own central bank digital currency cut you out of the equation. we're just going to deal directly with the, with the public as

a war and throw the bank on the bus because they, they decided to keep all the money. they won't, they won't lend it out. yes, i mean, it is the that is the set. if you like the drift, if you like, of where the policy is going. and so it's sort of, i think it makes it makes one feel that we're almost at the position of peak banking. i mean, what happens from there? actually, it's not a simple, massive because banks being bypassed by central banks, lending digital currency, direct to borrowers direct to consumers to go and consume it and all the rest of it and managing where that consumption is. i mean this is rated so many questions. and this is going to be something that i think is going to take some time to implement . right, right now, stacy has a fairy that it will be like a sunday night massacre like like the next and sunday night shock. it'll all be dumped on the world and surprise, you know, one sunday night, you know,

these policymakers, they're not known for, their nuance are they, they tend to be kind of hand pamphlets about things. but if in fact they, they implement such a thing and by the way, i believe simon dixon, i frank to the future was the 1st to kind of for forecast this. and he started talking about this maybe even 3 years ago. that means that we have a new kind of world in which central bank digital kern, these are the norm. and we also know that they're talking about these new central bank digital currency. it's coming with an expiration date that you have to spend it within 18 months or it expires worthless like an airline, frequent flyer miles. are you hearing similar things? yes, indeed. and if you read all of the stuff on the bank from settlements website about, you know, the research and all the rest of it, the central banks have done that is one of the options which central banks have very, very keen on that is for sure. also the i m f, of course, has

a sound currency. it's called a special drawing, right. and they increase the supply by triple. it's over near 600000000000 now. and it seems like there's something in motion there. one of the theories put forward over the years has been that the central bank give themselves a bell out by swapping all of the junk that they swap with wall street for a new f d r. so now s t r's become the reserve, the central bank system, which is problematic because it means for a democratic countries like the united states, you have one more layer of government and probably end up paying taxes, the local, state, federal and then global. i think the problem for the united states is even greater than that. the united states loves hagaman a through the dollar. and i don't think the united states is going to want to give that one out. beasley, these, the rule in which i think mean the whole thing is actually up in the air and we don't quite know how this stuff done. and of course,

the other thing is that the largest manufacturing nation in the world is now china . and what they will take for payment and what they will pay out for the commodities and all the rest of it is likely to have a pretty large say in how this evolved. and they've done their own research in terms of their own central bank digital currency and have been so advanced with it . they've actually done some testing on it. so this, i think this so many questions being raised by this move questions and answers by a long way. and let me ask you this because you're kind of my go to guy on geo politics finance history. so i've been saying this recently, i want to get your take on it and then help me if i'm not saying that correctly. but it seems that after a couple of decades of china, fixing their exchange rate and building this huge economy through exports, subsidized by the us taxpayer, the u. s. worker, etc, that they now feel pretty confident that they can, if they have to open

a trap door under the dollar and get destroyed that symbiotic relationship that's existed between the consumer and america and the producer in china. they've been buying ball by crazy. they seem to be stretching their legs, jail, politically and looking territory, actual territory to it, to the, to expand its china, getting ready to pull the plug on a dollar or, or what do you think? i didn't think so for the simple reason that i didn't think china wants to be blamed for the dollars collapse. what we don't know is to what extent she's already hedged her dollar position. she's got roughly 3 trillion dollars amongst in a sort of bank deposits and us treasuries and all the rest of it. so actually for the, for her to trigger a collapse in the, in the dollar is very much financial nuclear action. and i just didn't see her doing this. what she has done, i think she's used to dollars cash dollars very much to lend to her suppliers. i

mean like the african countries and so on. and so she has golf. there is long term assets. if you like, coming back to her in dollars. i'm sure in some cases that she's probably tied to the redman b rate. that wouldn't surprise me at all. but i just don't see that it is in her interest to collapse the dollar. i think what she's doing instead is that she has taken the chill from the way things developed to try and build her presence in asia as she's doing this, particularly through the shanghai cooperation organization. and things have been coming her way. i mean, iran, for example, that is an interesting situation and not any that, but i've got to stand by because now pulled up that is now coming together as far as china is concerned. she's already talking to the taliban. and the idea that basically is the shanghai corporation organization level,

the taliban will probably be central, ensuring that muslim terrorism doesn't spread from afghanistan into neighboring stumps. so you can see that the whole of this mac kinda paradigm is all coming together for china and russia under the shanghai cooperation organization. and in terms of their in economy. she's also trying very, very hard, i think, to ensure that it doesn't go but heat. and so she has been that we had a while we have been trying to stimulate our economy. she's been actually slowing down. meanwhile, of course, massive massive trade deficits and barracks terrible. so the u. k. basically as a result of government budget deficits means that china is still has massive exporting business to, to the west. right? gotta cut it out there out there. thanks so much for being on time report. my

passion max. all right, not going to do it for this edition of kaiser report with me max kaiser and stacy herbert want to think, i guess the algebra cloud of gold money dot com into a lifetime by the me, ah, join me every thursday on the alex simon show and i'll be speaking to guess in the world, the politic sport business. i'm show business. i'll see you then me the annex painted upside of the pandemic. kenya's experiencing. and elephant baby boom. 250. why this can you have so many cars? and how has the panoramic impacted people's lives? is andree will have fairly big long in any fact he end up killing himself.

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becomes the after kid and engagement equals the trail. when so many find themselves well, the parts we choose to look for common ground in the me with ah hello in welcome to cross top where all things are considered. i'm peter lavelle. remember the great 964, a film doctor. strange love. you remember the subtitle of the film, it was how i learned to stop worrying and love the bomb. well i haven't.