on the world was like a dog in class like a dog cat, the dog. so amazon looks like monopoly trays like a monopoly makes money like monopoly behaves like monopoly. amazon essentially controlled the marketplace. it's not really a market, it's a private arena where a single company controls the distribution of daily products and the infrastructure of our economy, the, according to amazon ah, the story sion in cobble an art he crew experiences firsthand the chaos on the i've got capital 10 days off of the taliban sake. so while russia is evacuating 500 people from going to san, including its own citizens and others from one country, among them, topics and ukrainian show of patriotism or a fear of fortune live away us weapon contractors,

schools and continue the friends are gone. mission, critics, editor in chief thanks. think they're all clear reasons why did the was the the mass flow money that went into the wrong pocket. it could only be called corruption on the log scale. because of all it's coming away just a few. i'm at the time you gave us food, but the team and i all back in one. i'll send you a brief update of the global news headline. join us again, but the hi, i'm ash kaiser. this is the cause a report. well, america is crazy frat party. in afghanistan is over, took 20 years, leaving behind quite a mass space. right. and, you know, and there was a great thought piece out this week about the moment of our exit august 15th

2021 from afghanistan. and it's called farewell to bourgeois kings. and the thing is, it really goes with our whole theme that we've been looking at the past few years. and recently where we compared the united states to weimar germany. and it, you know, the hyper inflation of 923 took a few years to actually get to that point. we covered michael burry covering this one money dive. well in this article farewell to bourgeois kings. the author kings cord, he refers to call schmidt, who wrote in 1923 a year of the hyper inflation and germany. and this guy was in germany. he knows that every ruling class throughout history advances various claims about his own legitimacy. without which a stable political order is impossible, legitimated claims can take many different forms and may change over time. but once they become exhausted or lose their credibility,

that is pretty much it. she was talking about the times of the kings. and once the king can no longer the monarchy, the divine rites could no longer be maintain. the people didn't believe it any more . they went for the likes of napoleon and said, right, like once there was a new way of running things and they didn't believe in the old way running things, there was no way to get that legitimacy back. and he's positing that were the moment and terrible is the end of the meritocracy. the reign of meritocracy. so called meritocracy, where all these think tangs and he's cable news stars, you know, with rhodes scholarship that they're somehow like divinely better. and they trust the science and they trust the data and they know how to interpret all this. and you don't write yeah, legitimacy is done. you know, as far as a method of organizing the population, to claim one has a degree of legitimacy over everybody else. because what we're saying and of ghana,

stan, is that all of the folks who claim to have legitimacy. remember, when biden came in the office, the adults were back in the room. yes, i remember back when the soviet union fell. there is a great essay by francis fukuyama called the end of history. you know, supposedly that the west one and capitalism free market capitalism was now going to be the, the only system going forward. you know, that was wrong, but i think, i think now actually the end of history is actually, this is world a legitimate story here in the end, the fall of capital because it's the fall of really the 80 or 90 year post world war 2, washington consensus us style of command control using paper money. so i think that is that's now finished. so we're entering into a new era. and we've, we've speculated with people like dan collins,

what that new era will be like. i think the pendulum of power will swing probably into the eurasia zone. i think that'll be a certainty. so usually they can no longer project their power because nobody believes them that many more. once the monarchy, the french monarchy was gone. that was the end of monarchy. they tried to come back once and the people didn't want them back. and the same thing here, people don't want the meritocracy because they look around them and they see california wasteland. disaster down humanitarian disasters on they. they presented afghanistan as the, the actual lab for this meritocracy that they were going to show you how to turn a backward country into, you know, a liberal sort of democracy. and it never happened using think tanks using billions and billions of dollars. no penny was spared. no money was spared. everything with

was thrown at them. now they, he points out in this article, it is not just the elite classes incompetent. even kings could be incompetent without undermining belief and monarchy as a system. it is that they are so grossly spectacularly incompetent that they walk around among us as living rebuttals of meritocracy itself. it is that their application of managerial logic to whatever feel they get their grubby mit on from homelessness in california to industrial policy to running a war makes that thing 10 times more expensive and a 100 times more dysfunctional to make the situation worse. the current elite seem almost serene, and there wilful destruction of the very fields they rely on for their legitimacy. i remember that talking about frat parties. you know, that movie animal house with john belushi back in the late seventies early eighties . that was part of the series put together by national lampoon. they put

a lot of these movies together, satirical movies and afghan. stan has become really the latest and the national lampoon style satire. and the cab ball disaster. it's can only be seen as comedy and a john below she, i think if he had flown in in a helicopter and made some funny faces, i think would have been a little bit more entertaining. instead, they have some dower faced, 5 star us generals, playing the part of john belushi would have cast this differently. but to have the saigon air lift off, the embassy read ducks. you know, a sequel. i think maybe spielberg could direct to this better, or even able ferrara would have directed this fantastically in it much more entertaining way than the current crop of did the joe biden is not a good film director, and as a result, it's not that entertaining. well, certainly the story,

they told us the story that was told on the media by the rhodes scholars at emerson, b. c. by the children up. what you saw was they, they failed to tell the story over and over, and they never look back whether it's in new york times, whether it's a washington post, whether it's m, s embassy, whether it's the and then they got a sound wrong, they got it. iraq wrong, they've got libya wrong, they got syria wrong, they got yemen wrong, they get the financial crisis wrong. they got all of it wrong. all of our stuff was always right. looking back in hind sight. now you can look at the track record. there are new tube that's part of probably why they try to memory a whole so much of the alternative media while keeping their own content up there. so that's a story they told them that the failure of that so called meritocracy. the smartest men in the room, whether it's from enron, or cnn, or m s, b c, or any of these, you know, j. p. morgan, or goldman sachs. they all failed. all the smartest guys in the room always fails.

so we're going to look at, you know, the data, which we've pointed out that you know, why my germany, what happened was 19202122, the people their loved the failing elite. and they loved them because they were printing money and giving it to them, and they kept up with the inflation. and they, everybody felt wealthy. things were buzzing. that it was a bit of a herat time until the hyper inflation had in. so right now, like this seems similar in the last, gast of the legitimacy, they're looking for any sort of legitimacy and point. the people love them when they get those free stories. they love them when they get all that free money and they don't have to work anymore, they get to work from home. i'm are germany had the same thing by the way. they had a passive resistance movement to resist the french and belgium occupation of their coal area to pay for reparation. so they, they told the people, basically not to work, job passive resistance to, to the occupation by the french and the belgium. well, let's look at just

a few of these headlines and the last few moments here of these n days of this sort of last gasp of the legitimacy of this marital prosy. first, ex afghan president, ash ghani reportedly fled country with a $169000000.00 and emerges in u a. e. course, you know, we've installed him, he was our puppet that some minor max's taxes that he stole. and he took there and escaped into e. well, you know, this, this is just one guy. got to still 169000000. many billions more are also stolen by entitled people like this. like the thing tankers, like the military industrial complex, like the pansies, all of these people just plundered our taxes in the name of their marriage shop to craddick project. right, and the bankers, they print the money. now they keep it all, essentially the warlords in america. they are, they print bombs,

then they go people with it, you know, but they get money for based on the number of bombs they may manufacture, right? they get, they get paid on the gross. so the defense contractors in america get paid on how many bombs and bullets they produce and boon dog goals and projects that don't make sense and how many countries they invade that they get paid on the growth, right. it's like a hollywood movie. they don't get paid on the net, they don't get paid on any profit. they don't get paid and whether it makes sense, they just get paid on the budget, the gross it. so that's why these wars, like it's a 2 trillion dollar warm, $2.00 joined our warm people say, well, we didn't get anything out of it. but the producers of the war got paid on that to point. they've got a percentage of the 2.2 trillion, like 10 percent or what have you. so for them it was again, this is the biggest hollywood spectacle. i mean, this is a $2.00 trillion dollar hollywood bomb, where the producers may so much money. this guy who just flew to wherever,

you know, he's either actually a hollywood producer. he's the, he got paid to be a participant in this incredible bomb and, and why hire extra when you can just kill actual people? you know, it saves, saves money for these guys. they get, they don't have to hire people to play dying victims of war. they just kill people . you know, julian assigned later on up 10 years ago. and so this is just welfare for a cluster crab and one of the lords but the movies over for now and i gave it a c minus i thought it was terrible. i give this movie a horrible review. i think the laugh ghana stanny pull out from biden and crew was one of the least entertaining of america's boone bottles. i gave it a f adult diapers or in the room. and you could see that in the final weimar, germany headlines here, because importantly, weimar germany did not have a global reserve currency, the us dollars a reserve currency. so can tell an effect in action,

global 1000000000. our wealth has increased more in the last 17 months. and over the previous 15 years combined by bet, queen, and as a response here, biden, they adult diapers are in the room, right biden. to increase food stamp benefits by 25 percent. the largest hike in the programs history. but importantly, look at the international, sorry, 25 percent increase in food stamps. well, 31 percent. the soren cost of food is forcing families to scrimp at the table. food prices in july were up 31 percent from the same month last year. according to the index compiled by the united nations food and agricultural station. so food prices got 31 percent. your benefits going up 25 percent is going to drive food prices up even higher for all those globally. and this is the last gap of legitimacy of meritocracy. they just, all they know how to do now is throw money out of problems. that's what happens when you print lots of money. you know, you're, you're going to create the inflation rate that is, are ever expanding faster than your purchasing power on that expanded money. so

it's exact, it's exactly the opposite of what we had the last 20 years, where you had the labor cost shrink, but the cost of goods from china was getting even cheaper. so you have the illusion of prosperity. now it's flipped. so the adult diapers are in the room and things bad, stinking. well, that's real. it's real thinking. we're going to take a break and when we come back, so much more coming your way. the me ah, the

ah, 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 political time. time to sit down and talk or military mission against them will conclude on august 31st, i was assigned to who did a go to what i thought the quote unquote

a young girl who will bundle you so much. you got to be a southern company. so the cut, the cut over the whatever the month. okay. that was the quote things alicia. very good. this was the right weapon against the right and the local. no, no, no, but i keep somebody filled out a through z o o z the, the signing of the us to all about agreement and laid the groundwork for the road ahead toward a lasting peace in afghanistan. and i know that i'm a dunaway and does i have the

the, the the me welcome back to the guys report, i'm at kaiser time now to turn to entrepreneur and business band for part 2 of our conversation with dan collins. dan, welcome back. a thanks. let's talk about china, post cub id, or perhaps it's better to say it endemic, never ending variance covered world. it feel they are in the same position as the us post world war 2 and other words, us came out of world war 2 intact. and they went on the american century is china same, they come out of it better than anybody else. there's that a good analogy. very good analogy. 1 if you look at the ports, the ports on all over the world are clogged with chinese ships and chinese goods trying to get product out of china and in the united states. they're the r

factories of not been bombed by wars, but have been bombed out by money printing and d, incentivizing the production and manufacturing industries and united states. you know, if you can remember 20 years, no academics have been telling us we're going to sell burgers to each other and everything's gonna be fine. is not fine, but we've been de industrialized the infrastructure rotted. o p o. demick. we have all kinds of social issues that have grown on this, but china is the 800 pound gorilla, the global economy. you can look at it from anything. and it's not just manufacturing anymore. 3 quarters of artificial intelligence patterns over the last decade of come from china. they're leading in quantum computing, mobile payments, e commerce markets $2.00 to $3.00 times the size of the united states. so their economy is just a juggernaut and it's a good reference. i mean, the next 50 to 100 years belongs to china. if they don't screwed up, you know, we're in kind of a postcard with era. the phrase of the day is new variance, right?

so this is what people are talking about and not getting into the virology out it. but does, there's no variance scenario. how does it play out? because i saw a headline that china just closed a big city due to a new variant. the. so a micro, the 1st option is they go into some kind of locked down and supply chains get paralyzed, be they get through it or not. what are you saying, dan? tweed it out and i expected that this delta various china may not be able to stop it. they did basically incredible control originally or the alpha variance. people don't have a clear picture on what china does. they have what's called 0, call it policy. so if one worker and a hotel gets it, nobody is leaving the hotel for 2 weeks. they go in, they give you meals, you're basically stay in there recently. what were, what you were mentioned?

city and young joe, they had, i think maybe a 100 cases. they locked down an entire neighborhood. nobody's leave in. 10000 workers are standing to support the people that are quarantine or get meals. they're getting whatever, but they're not leaving for 2 weeks. so at this stage it looks like they have stopped a little bit of this bill to various spread. there was one work or found in the near port, but i've talked to people there. this port should restart monday or tuesday. but in the reality, yeah, when, if china ever gets locked down, holy, you know, forget about it. you're not getting christmas. guess the world will stop because everything is coming to china. so it's still, it's still a game in progress. we'll see if they can control or not. and right behind delta, lambda and every other variance that come, you know, i mean there's 2 issues there, the virus and then there's the response. and the virus is doing whatever the virus is going to do. and then different countries have different responses,

and the fact that they don't match up creates a lot of friction in a world that we used to talk about in terms of globalization and how things are frictionless. and just in time, this is really completely changing that paradigm completely. and i guess we'll see who's reno can, who's prepared for who can handle it. it certainly has led to supply chain disruptions you to it it, that chip shortages worse than ever. no. and inside the cost could go want half a $1.00 to a one percent of g d p or a trillion dollars. i'm assume we're talking about america, they're elaborate on this. what's going on? tell us how the shortage is also encouraging a high industry, a big industry in fake chips that's as bad. it's also increasing inflation. so i've talked to a lot of people that you know, fortune 500 companies that buy chips actually yesterday as a conversation and not getting any better. it's become a brokers market. there's

a lot of big chips coming out. ships are showing up and they're not working, they're, they're, they're pirated goods. as i mentioned, it's up to a trillion dollars in global g, d p is going to be loss. it's spiking inflation. so if you just look at what's been in the news with the car makers, detroit has a 1000000 cars sitting in parking lot right now waiting to get chips retrofitted in the vehicles. but they've already front loaded their pricing. so you can see the price. there's skyrocketing for used vehicles and new vehicles, their front loading all this inflation, but yet they still haven't taken all the costs hits on the, on the supply side yet. and you're seeing record profits out of everybody, which is a bizarre situation with, with all the supply chain shortages in detroit right now, goes to rolling, shut down every 3 weeks. this plans close next 3 weeks. that plans close. and that's just an example of the automotive industry is industry after industry. we

are, you know, basically, you know, in a big, big supply chain prices right now. well, my understanding is that 80 percent of all the chips in the world, a manufacture in taiwan. ah, no comment. let's move on to steel. steel prices are also 23 percent in the past year. and now the biden administration is about the past. the trillion dollar plus infrastructure plan. can they execute those play without still? and where will they get that steel? dan, well, that's an interesting side point to the china, us relationships. so we know the infrastructure package, we're going to need a lot of steel promise. we don't make much steel. china makes 10 times the amount of steel that we make to make the boat roughly a 1000000000 times a year of steel. they've just announced a new policy literally going in the same time. we know it's our infrastructure plan, that they're going to limit steel exports. they put a 25 percent tariff on anything leaving the any steel product, leaving the country. they're going to go back to domestic use. why steel takes

a ton of or to import is very a polluting industry, a lot of carbon emissions and it's low profit. so chinese kind of get not of it just when we need to import all this feel. so it's going to, at the very, you know, it's going to be just one more area of severe supply supply chain crisis united states as we try to rebuild back better is, is the bite in administration says, right. you mentioned a lot of iron or to make steel. i get a minor standing is a lot of it comes from australia and australia is going through it. we mentioned that different countries are responding and different ways to carbon australia seems to be on it. really a unique path in some ways, i don't know if you, you know, look much in australia, but they, they made the lock downs in china same mile by comparison. it seem seemingly. what is your view on that? if you have one, as you mentioned, is all different, different countries. i've been very draconian along with the u. k and the u. s. not so much in the u. s. we've seen that we did, i think, well,

that seems but then we just have a policy of letting it burn through the population. china has done a lot of non vaccine stuff to can all call the mobile apps. you know, everyone has a mobile app. they can have you been any positive case, your mobile phone number gets loaded up and through the telecom network you go in, you can tell if anyone with cold it's been near you within the last week. so they're doing it. they're doing a lot of the different initiatives to control it outside of just vaccines and just let them plow through the population. australia they've done, you know, basically draconian locked down, but you have to make the decision. how long are you going to make people locked down already in the year 2 and this thing? yeah, i guess getting back to the chinese economy. so one thing we always talked about for years is the, the chinese currency and how they use it to boost their exports by kind of managed to get in a cheaper way. this would make import expect expensive. and so the chinese middle

class were, couldn't afford, you know, the middle class lifestyle because they were busy at the factory shipping stuff that china now is a dynamic change recently did have now been emerging middle class is there in fact, wage parity between america in the us, do we see that happening? because when joe biden 1st was talking about china entering the world trade organization, he said they'll never amount to anything. they'll never make any money the they'll never know how to get a middle class. what's the, what's the current look at that? china has a massive middle class. now it's actually larger than the entire united states population. they identified their targets 20 years ago to have what they call a mildly prosper, prosperous economy. and i think that's like with 250000000 people is making more than 20000 a year. but obviously $20000.00 goes a lot farther and china does in the us chinese workers. i actually ran a steel plant year decade ago in china. we paid workers a $100.00 a month eventually, but 3 years later, we're paying them $800.00

a month. now days chinese workers easily can make 150-2008 month. so now, but it's much, much, you know, you have to go back 3040 years ago trying to have the economy of subs here. and people were live and nothing barely had one set of clothes were eating me. i mean, it was been incredible. the economic transformation has happened, but the, their middle class is booming and you know, there's kids are studying. they had the private tutoring companies even killed off because kids are studying from 6 am to 10 pm at night is too much. so they've gone through this renaissance, the economy is going to continue growing. they may put, they may, they may make a lot of mistakes on the way, but the trends at this point are so unstoppable. it's almost impossible to see how they're going to reverse. while i look around the world and i see protest all over the world, particularly in europe in france, around europe, you see people on the streets actually protesting. you see a lot of police action in these areas as well. what the social cohesion element in

china, it is, it has its own culture. it's a communist country. it's huge 1000000000 plus people, as you point out, is technologically networked, with great precision and it's all controlled from the center of the government. what is the vibe on the street in terms of social cohesion, just for the average work or the average chinese man or woman? what was their feeling? oh, china is very cohesive. it's largely homogenous, is extremely nationalistic, patriotic. there is. you know, if you're, if you are going to, if you are an alien and you came down, which countries are going to class 1st china, the united states in be $100.00 to $1.00 in favor, the united states collapsing 1st. there china is no way going to break apart or be socially torn apart. the us intel agencies are trying that with ridiculous claims and she's young and things like that because that is the one province of china that

ethnically different fits of 50 percent of people are weavers from young, 50 percent on chinese. been a lot of terrorism and things like that. they're in the past. they're trying to break that area off a china decree. you know, greatly often china, basically. so the terms of overall social he's no, china is basically full speed ahead. as far as i know, there are times of time there are certain issues people get upset about, but it's nothing like what we see in the united states at all. the same buildings getting burned down in china while every country is going to have to make deal with what they have, you know, going forward again, that area of d, globalization and lot of it's based on character and history and we'll see how it all works out but it's going to be interesting. next 20 to 30 years. dan, thanks so much for being on kaiser report. thanks a lot. all right, not going to do it for this edition of kaiser report with may max kaiser and stacy herbert want to thank our gas, dan collins. and so next time, by all the me

look forward to talking to you all. that technology should work for people. a robot must obey the orders given it by human beings, except when the shorter the conflict with the 1st law show your identification. we should be very careful about artificial intelligence. at the point obviously is to great truck rather than fear take on various jobs with artificial intelligence, we'll summoning the demon a robot must protect his own existence with.