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the me. i am at kaiser this is the kaiser re port. you know, you give an inch. i think a mile. never a piece of crocodile lets churchill said, what am i talking about? let's check in with stacy. right max. well the u. s. embassy incapable told to destroy files in case taliban wins. obviously in case is already a reality. but the thing is like on cause report here. we keep on saying over the past year to that it looks like the 70s are coming back. and of course, the seventy's afghanistan was in the news, and that was the beginning of the end for the soviet empire. now the u. s. empire is collapsing there, and i have several things to say in terms of one thing. what people always ask, why does every empire go there to die?

and every empire is the epitome, essential is ation and hedge. a monic power, a single power controlling a lot. and they always disintegrate at the edges of their empire. and of course, the problem with afghan stan for all empires is that it's one of the most decentralized of all nations space, right? there's many, many valleys, many mountains, many tribes within those mountains. and each mountain valley there's another tribe and to try to control all of them with all their little nodes of power. it's impossible in every single solitary, centralized power who only has force at their hands. it doesn't, and never when, once again we've got ourselves into a quagmire, remember that was the popular word during the vietnam era. and the afghanistan is yet another military quagmire. $2.00 trillion dollars. couple of 1000 soldiers died . and for the same reason, there was no clearly stated mission,

there was no incentive to win, right? because all the contractors are getting fat and rich. and so finally, they just had to give up the ghost mainstream media, especially that financed by the likes of raytheon and lockheed martin. they were always on the wrong side of this. they predicted this wrong for 20 years. they got it wrong. the media outside of raytheon and lockheed martin finance stuff that alternative media that is now been violent and, you know, throttled essentially on google searches and youtube and stuff like that. they were right this entire time about what the inevitable outcome was in afghanistan. even if we had stayed there as the raytheon and lockheed martin finance media says like we should say there for another 2030 years. we can never leave. there were no matter when we were going to leave, the inevitable was going to happen and that was exactly, it's going to go back to where we started from. right. and but however, you know, the whole theory this whole time has just been like another surge will fix this

problem. i'm another mother of all bombs. remember the moab that we dropped the bomb and history dropped, and that was gonna scare those taliban off and they would never, they were run away from afghanistan and never know, you know, they would know better than to ever try to take back their country. well, you can apply that to how the same centralized command and control system operating on the us dollar. rails has operated this whole time as it also disintegrate around the same time, 200-2000. and one was the beginning of the end that we've identified here in cost reports. we've been in a, we were in afghanistan since 2000 or one. so at the same time they, there is a parallel that you could tell the same elite are running everything because they keep on having the same bad ideas, whether it's monetary policy or military policy. right? there's a direct analogy to make between the very next quantitative easing round, which will be the biggest yet,

is going to help us achieve inflation and stop all the deflation or the bigger bomb we drop the moab is. it's a bigger bomb than the state of iowa. we're going to drop in and it's going to rattle those caves. and we're going to bring a starbucks in. they are quick. and it's always about escalating to bigger, bigger versions of the exact same thing that got you into the mass. and to begin with, right, there's no way to corral this nation in a way that's been shown throughout history to be an empire killing zone. just like the can't stop inflation by printing money, joe biden. guess what? your stimulus, pri, brock, he said that the expertise or the raytheon told rachel matta that they were going to get out of afghanistan. they just need to drop bigger bombs. well, all the mackenzie and the consultant and the professional talking mouse were saying to joe biden, you just need bigger stimulus, bigger quantitative, amazing job,

l dot, the treasury mover from the fed move over here. you know, bigger wars stock buyback more quantitative easing. right? and the result is, remember, after the soviet union call, it was 2 years after they pulled out of that afghan stand nightmare that the soviet union collapsed. so i think we got to put us on a similar timeline at the clock is ticking. now will it take even take 24 months for the us to go through a soviet union collapse? i don't, i don't think so. i think we're under 12 months. we're now what can to continue? why that might be happening? why this inflation? why this, you know, the very centralized the currency system, part of the disintegration. what's happened over that same 20 years is the introduction of bitcoin that happened midway through midway through this 2001 to 2000, 2021 period was the financial crisis of 2008 to 2009, 10. and we saw hi and introduce that, and that was like the trojan horse into,

to disintegrate. that was the mother of all bound for a real. but the mo, ab, you know, the mother of all bombs that i think it was trump, it had dropped on afghanistan. remember, it was a big thing like, oh, look at the satellite images, you can see this huge explosion and debris going everywhere. and of course, you know what, you don't understand whether it's an a nuclear bomb or moab is the thing is all that debris lands on somebody and kills innocent bystanders. and the collateral damage is the same thing is happening with inflation. so with all the money printing all these yet another q e program, yet another tarp sorta program. yet another every stimulus package over the past year got bigger and bigger and bigger. right? they keep on coming up with bigger and bigger and bigger checks, and that will care of the whole system, the collateral, the same sort of debris, the collateral damage, you know, it hits and then like that nuclear bomb, it takes a moment to then i go home and fall, so you start, you're starting to see,

i mean we've catalog this over the past few months now. the inflation raging like the seventy's started to hit really huge numbers. largest yearly advance and producer price index and history dating back to 2010. the producer price index rose one percent from june to july and 7.8 percent from a year ago. led by services, so services are leading the way up 1 point, one percent on the month. so obviously over 13 percent for the year the producer price index is up. if you count from the yearly, from june to july, you annualize that, that's going to be over 12 percent as well. so those are, those are nice. you 75 numbers, right? you're right about the collateral damage that comes from money printing the inflation and just like a warfare. remember, after the vietnam war, they didn't like to show the pictures. the dead soldiers coming off the plane, right? sure. similarly, they don't like to show the casualties of the money printing. they obeyed over doses, the suicides due to stress and collapse of the moral fabric of the,

of the country. so they don't like to show that stuff, but there, there is the collateral damage from money printing. the financial terrorism on wall street does have consequences, particularly when it's aimed at your domestic population. sadly, they used to just focus on foreign countries, latin america in particular, but now those wall street assassins and arsonist are looking at americans and thinking that the juicy target to go after. and they're killing people, just like they're killing people overseas. and they're all kind of funded by the same folks and they go to their cocktail parties at the world economic forum. they congratulate themselves and they like to count bodies and life. so we climb to the highest prices may as u. s. d, a cuts us supply forecasts also, the weather is starting to, you know, the climate is changing and things are going crazy. and the weak belt. and so you're starting to see supply cuts, but supply chain problems on top of the pandemic. so,

like we've been cataloging like, you know, there are a major shift going on there were major shift happening, post world war 2 that led up to the sixties and seventies and going off the gold standard. you know, these are cycles that kind of go around and around and usually driven by hubris and hard times and good times and all that sort of stuff. so right now we've had the, the good times for so long max, you know, since basically in 1982, when you went to wall street and interest rates have been declining the whole time . so now we're at that and point, we've been cataloging this on the case report for over 10 years than ever the declining interest rates and we've hit the bottom. and now where do we go? and it can only get worse, right? so you mentioned that the afghanistan war costs more than $2.00 trillion $1.24 lives to 1000 of those lives are us soldiers, 20000 injured. and the cost of those $20000.00 that are injured is on this

tab of 2 trillion, which is projected out until 2030 at the cost of taking care of those wounded soldiers. but when you add up the cost of defense and state department fund sunk into operation, enduring freedom and resolute support, resolute support, sounds like a good thing. what the fed is always doing, it's resolute support for the market. yes, this is a war against the market section. team and then throw in the cost of caring for the conflicts. it's as up to 2 trillion dollars, the cost of war project detail. that's most recent estimates. finding that most of the money came out of the $933000000000.00 and department of defense overseas contingency funding. the rest includes $443000000000.00, and d, base budget increases to support the war $296000000000.00 to care for veterans. 59000000000 and they overseas contingency funds. and this is the most important max, 530000000000 to cover the interest on money borrowed of fund 20 years of deployments. don't have to pay the,

the past 20 years off. and that's the problem if they are money. yeah. and chief credit is that as long as the interest rates are going down, then the interest payment on that debt is going down or provide you room to borrow more. that's the single greatest reason why america isn't gap down staff for 20 years is because the federal reserve bank and last year banks have kept interest rates there 0 to extend and pretend to make it seem like the cost of the war was getting cheaper and they gave no value to human dead soldiers, 0 value. thank you. have a great janet, gal and j pal, the value our soldiers that nothing. thank you so much. thank you. years. thank you for your service. your money printers. oh it's it's, it's sad, it's grotesque. it's america. oh america. you forgot been bernacki, and i my ad. there were only, there were 2000 us soldiers killed and there were tens of thousands of f danny's killed. and now their country isn't chaos just like libya isn't chaos just like yemen isn't chaos just like iraq is, you know,

perhaps coming out of some of their chaos, but also chaotic and so we have a similar situation. the decentralization has beat incense. so as ation, once again and the center did not hold and it will not hold. and therefore the only choice to save yourself is some bitcoin. yeah, you can't taper upon this game and that's all that kind of a war time party game. all right, going to take a break when we come back, what mark coming your way? the me, what we've got to do is identify the threats that we have. it's crazy foundation, let it be an arms race is on often very dramatic development. only personally, i'm going to resist. i don't see how that strategy will be successful, very critical of time. time to sit down and talk to join me every thursday on the alex simon show. and i'll be speaking to guess in the

world, the politics sport business. i'm show business. i'll see you then. me the me welcome back to the kaiser report. imax guys are time out to go to wolf rector of wolf street dot com wolf. welcome back. re max space for him. me been reading your work lately. it's like you've got eyes on the thinking of the titanic. things are spitting out of control. you as always, are doing a forensic look at the data. what stands out in your mind? well, the big thing right now is inflation and it's every war and it's cropping up in places where he didn't expect it and it's getting worse in different places, further behind the scenes. and so that's why i'm looking at so inflation is

something that is difficult to predict how it manifests where it pops up. as you say, the data is interesting because you see it occurring in places that nobody has prepared for. and is this the beginning of a secular moving violation? or as we're being told, it's transitory when you look at individual items, you can definitely see that that day would have to be transitory. i mean, some of the price spikes were so crazy that many just know they're going to unwind and used cars. is one of those. i mean, i used car price increases a 40 percent on the retail side and, and higher than that on the wholesale side, year over year. with this just complete enough people are paying more for a used car than for new car. the whole market has gone totally nuts and, and that, and they started going here. so we now have seen on the wholesale side, the 1st 2 months in a row of declines. so that is starting to, to unwind

a little bit does to declines in the whole sense either going to be on the retail side in a month. okay, so we'll start seeing next. now new car prices are going up. when they used car prices are gone down, so that's, that's a consequence of the trade in value. so that's that sort of a follow through, you know, any trade in value learned and car dealership checking up their prices or new car. so while one of them goes down a little bit, the other goes up a lot. so we've, we've got that wacko most situation. we've got all kinds of transportation costs spiking because of a number of reasons. and they're being gradually passed on all of that and passionate. that's the thing. you know, the companies passed on little by little and, and so they're lagging behind the margin shrinking and the pressure and, and so they're taking the time but they are asking these on. and so we have all these precious filled up in the pipeline that have manufactured themselves. you know, we already have to speak, and i think this is, this is going to play out for

a lot longer than anybody expects. and we've got huge monetary stimulates, we've got huge fiscal stimulus going on at the same time. so nothing is being done in any way to slow this down. so i don't see this could be incurred. they look at the individual components, really the logistics of everything, the supply chains. according to the headline, they appear to be on the brink of collapse. you've taken a look at supply chains. what exactly is happening with shipping and ports are out there on the west coast in the san francisco area. so you have a good understanding of that. certainly the asian, the us shipping, what's happening there. so this is a combination of things we've had this always stimulated economy where consumers couldn't spend money on services because they were shut down such as vacations and cruises and stuff. so that bought stuff. and this bought material. these goods are being imported from asia and that's started last year. and so now that was the

lumen, imports our record, trade deficits for the 9 states movement import. and the shipping industry had just consolidated their went through a crisis in 2015, 2016. so they have different acid. and so now we're into container shortages. we run into port problems backlog at the port of the s boards in the chinese portage that just sit down another major report in china due to corporate infection there. so you've got this chaos going on when you talk to individual ship companies and trying to get a container anymore. it's a nightmare, even locating and people trying to find a route and then the 6 to re routed because it's backlogs, and, and, or problems. so this is just, it's really chaotic out there and everybody's trying to figure out how to get the merchandise across pacific. and for us, export is it means that they're having trouble exporting this stuff because they can't find empty containers to ship back. because there's such

a price of containers in asia that they're being shipped back empty, faster. so you've got this phone chaos going on out there right now in the container world and, and that's been going on for a while since since last year. and, and it's not temporary, you know, it's not going away. it's august now, and it's still as bad as it was worse. joe biden said something recently that he's begging, unpacked to increase supply because he's worried about the price of gas. now, is it more accurate? shouldn't he be asking the federal reserve bank to decrease the supply of money printing if he really wants the price of gas to go down, he needs to increase the purchasing power of the dollar. right? i mean, but how does the guy like that get to be president and not know this basic fact think is doing both. and because you already had a sen through that craddick center,

come out and said that fed should increase it acid purchases sooner. right now it's actually pushing up inflation. so that was an official letter here on to the federal reserve. and himself said that he just decided to take control inflation when, when it starts pay more than january, inflation is, is, is a political. and, you know, the carter has found this out, you know, you cannot run inflation by consumers for a long before they get really frustrated and, and now, you know, they're, they know that. so they are going to work both ways, you know, and i think my theory is that in the end by we're back to raise interest rates and inflation control big as high inflation rate. well, well scott and his agenda,

you know, and she won't be able to be frustrated and, and i think there will try to get the sense lower there. you can down on inflation and you know that the gas thing gas prices are what american see a lot. but of course, united states is a huge producer of oil. and you know, that share on industry has cut way back. so production in the united states is actually way down from what it was. and i was kind of funny to ask opec to increase to actually, while in the united states, you know, production's been way down. well, you make the jimmy carter analogy there. of course, we saw a period under the carter administration with oil shock as it was noun. and in came paul walker, who raised rates dramatically to stop inflation. and right now, inflation is earning out about the same rate where volker saw needs to raise rates

to the 14 to 15 percent range rates are still around one to 2 percent. if they come in and they jack rates the 14 percent to stop inflation, that means given the leverage in the system, every bank and insurance company in america is technically installed and it was just going to go home. when they do that, there is, i don't seem to sense, you know, as you pointed out, if they bring, i mean, is there any, it's that broad short term right up to 5 percent up to the rate of inflation. that's still stimulus to the rate the short term interest rate being just below the rate of inflation and that is stimulated. so that will be 5 percent short term. and long term rates will be somewhat higher than that at the fed would have to start loading its balance sheet to do that. so selling bonds out, right? you know, that would that, i mean, if you get long term rates of 6 or 7 percent,

that would be major upheaval. and so i think the very leery of going there and, and, you know, short term, me to put this into perspective, going back the 70, the fed wasn't leveraged at all today. the fed is library. 60, the one it's leverage more than enron was before. enron blew up. so there is no 5 percent in the future. there's no even 2 percent on overnight rates coming in the future. so this is really an amazing crash. what was once a superpower look at these numbers, steal up 23 percent. how prices up? 23 percent. wholesale prices up 7.8 percent. you know, this is out of control. inflation in the inflation mindset is then, as you point out, used cars are selling more the new cars, you know, the car markets in blackboard, asian wolf, you know, who would have thought that was even possible. well, anyway, the job number opening the number of unemployed is also telling us something people

aren't really looking to get a job when they get the free money from uncle sam. right? that's not going to change anytime soon. well, you know, if you don't have to pay your rent because of an eviction moratorium and get extra unemployment benefits from the federal government plus the state benefits you're better off than you were before. and you know, it's very, we, we, we have unemployment plus the extra federal unemployment, other people could pay their rent and could make them more rich, famous. and then we said, ok, well can you get this extra money to make it mortgage payments around payments. but you know, you don't have to make those payments and people just sat on the income and, and it's a lot of income. yeah. may places much more than i had before. and expenses are way down because you don't have to pay the rent anymore for now. and, and it says logic or human behavior and you don't want to get off that gravy train and, and why it's ending, you know,

so we're going to see the extra unemployment benefits and in early september some days. and it's more towards may or may not. and people are going to have to deal with these issues at some point, you know, and that will change the labor market. so hopefully these people join the labor market and most are working. but, you know, the employee aside is going that's with people trying to fill jobs and they keep the company started from job and that can phone and that causes all kinds of pricing pressures, right? i see target department stores offering new hires college degrees. they're really, you know, this is what their chickens are coming home to roost. you know, to, to paraphrase malcolm x. you know, all of this garbage policies are really turning into a nightmare. you know, because essential workers, dock workers, meat packers, food workers getting food out the into the stores there. they know there's nobody

showing up, they're staying home. so what, what are people going to go to turn to cannibalism? i mean, it might make a real good reality tv show american cannibalism, you know, but is that what there is that the game plan was to have a comment on that? my, my wife works in the supply chain with meat. and so she has been going to the office throughout the pin demik. she is working directly. her company is working directly with me. backers, is i ism stories, what, what's going on to me, packers, and they have problems. obviously, putting people, getting people in to work, and so they're filling the jobs with the biggest volume. so were they getting the high volume cuts out? if, if you want specialty cuts and that's where my company, my wife's company's is, is largely involved in their having huge price increases to having trouble getting them. i mean, some of the prices are doubled they, they can get some of the cuts because the guy that used to cut he's,

he's now out and there's no one else to replace him. and all kinds of stories is just crazy stories. we look at my will still be marks, you know, i ordered them in june and i've been told while they're not going to produce the blank marks until november, and i just got word and now they're not going to do that either. it's going to be january before they produce the line, the mug shortage or wall street dot com though i'm concerned now with the best independent financial research anywhere. go to wall street dot com. i encourage you . thank you will of richter, thank you max. all right, not going to do it for this edition of kaiser report with me. max kaiser and stacy roberts, special thanks or i guess wolf rector of wolf street dot com until next time. bye. all the me ah, now we have cigarettes. i just heard that it was

a healthy alternative to figure out how do we trust tobacco companies with their message that these new products are actually going to reduce? are these, these are making the tobacco wars ah ah, in the annex painted upside of the pandemic,

kenya is experiencing an elephant baby boom. 206. why does kenya have so many allison carves and how has the pandemic impacted people's lives? there's a wall, it's a very big along in any fact he end up killing himself. i don't believe nearly and then you got one via well, and i will make the little was no did media group if they get they didn't say lucky to me. mean it will because at that of the, when i'm going to the they didn't even notice whether they call to go look, say no, we come in just to speak with an order with

the evacuation flights resume and cobbles made airport as tens of thousands, desperately seem to stand now under taliban rule after the disastrous withdrawal of us troops. meanwhile, during the chaotic pull out, the western coalition also leaves ammunition for the insurgents, including advanced weaponry, from aircraft to armored vehicles and even biometric devices. also this, our americans claim that they are being refused a life saving treatment if they haven't had a cold with vaccine even if their condition means they can't be inoculated. we put the issue up for debate. why you all we actually trying to.