abella, bankers all day long. you create a situation in what you do not have any reliable price discovery. they me economy for any of the components that make up the economy. this leads to both corruption and mal investment, a wealth and income gap. and as we see now, stagflation you have on employment high and inflation, those high. and both of these things are now structural cyclical. they cannot be cured by simply extending and pretend being they can't if the u. s. or to introduce 100 year bonds or 200 year bonds. that's not going to solve it. negative interest rates are not going to solve it. this is now pretty much heading toward a real catastrophe. yeah, and again, one analogy we've made in the past is the cargo called in the cargo. carl was in the south pacific islands who were suddenly confronted by the advanced japanese army, the air force,

and then the u. s. air force. and they saw all these planes arrive and they delivered food and brought all these things. right. and then once the armies left, they thought that the signaling for the plane would deliver all those goods again. and that's what we have with the fed is like, we have some sort of memory of pre $9071.00 gold standard wealth creation we, we remember manufacturing. remember, when we had all that wealth creation, we had wealth, and the wealthy people and wealth, the wealth was measured and money. so if we just print more of this money, things will suddenly emerge out appear, right? and you really seen that with a lockdown. so a lot of people are not working and now we're seeing the shortages but their, their, their response is like the money printing will continue until morale improves. and the shortages therefore will continue until morale improves because ford see,

yo farley says we'll be sure of ki electronic components till the end of next year . so this is another over 12 month period where we're going to have more shortages . ford has shut down production of automobiles because of shortages of electronic components. so the shortages are going to continue. they're going to meet that with more money printing, which is only going to cost more shortages because people will think they're wealthy and they think they have money. but the actual goods and services and the production of those goods and services are what actually create the well, the policy makers think that the economy is this formula. one car that went into a pit stop for a cove it. and that is going to come out of that pit, stop racing ahead back in the race. but in fact, in 2008. and then accentuated and coded the car. hit a brick wall. it crashed. so there's thought you can't just come out of it and

start the race. you have to rebuild the car from scratch. so, because of all the mallet vestment, because of all the crony capitalism, because of all the corruption that basic supply lines of basic tenants are free market capitalism in america have shattered into a 1000000 pieces. and so j pow, of course, after 40 years of fed interventionism by simply extending and pretending and printing a lot of money, they got into this cargo cult. as you call it mentality, where simply waving a flag, you know, that essentially printing more money is going to make all the problems disappear. meanwhile, politically, what we've seen in america is really remarkable. the, the liberal left and their cohorts in the media. even though that this policy is caused incredible human suffering in america, they've effectively marginalized those people, as quote, deplorable and really made scapegoats of the victims of j pow. and they've often said that this is a victimless crime, money printing and extortion that practice at the fed. and yet i looked at those

90000 dead americans last year from opiate overdose. i'd say j pal, you got blood on your hands because that's a direct result of mal investment, money printing, and rogue economics that you're practicing as a charlatan. was speaking of charlotte's hens, max, i do want to bring up another note from, i think was last episode of the episode before we talked about the revelation of what people are calling is insider trading from the various fed chairman's presidents of across america and 2 of them step down in the past week so far. i dallas fed president, robert caplin and boston fed president, eric rose in grand have both resigned to spend more time with their massive stock portfolios. right to the of the central bank chairs in america were caught red handed, stealing, trading on inside information, milking and building the american public, distorting markets, causing financial ma'am. and essentially, operating as, as i've said many for many years, people think it's

a bit of an roger asian. but i think as financial terrorist, i don't think it can make any difference between j. powell and extremism in any other country. this is financial extremism. the results are ideologically unsound, producing and deaths that mean it's, it's a financial terrorist, very versus atlas. compare it to what frederick boss yet said, where you know that when corrupt men come together, essentially they'll create the laws that justify their corruption. and one thing like dallas fed president robert caplin was own like or an act of hedge fund. he was like his own hedge funds. she was actively treating. and now it's important to note that that he's a fred president of dallas and the, and the, the member, the feds, you know, like in dallas, richmond and all these other minneapolis, their private sector. where as j pal at the fed, in new york's in washington d. c is considered like a government worker. so they, they have a little bit more leeway. but he says like, his argument was that he passed all his trades by their general counsel and their,

their rules allowed this. but, you know, in terms of the, the chaos that has been caused by the fed interventions in the economy. i want to point out that, you know, this all started as you mentioned in 2002009 during the financial crisis. and you know, kaiser report 1st came on board, then just tell you what was going on. and one thing we saw in the few years afterward was similar sort of stagflation rising inflation, food, price, inflation, energy, price, inflation, revolutions around the world. and the calls for a one trillion dollar platinum coin. that's back to all that stuff is back right now. it's like it's, it's like a fractal. this is the fractal of economic chaos nonstop. it's getting like more and more the fragile is getting more like this coming faster. right. the 2008 was met with a wall of money, especially for the central bank to buy back

a lot of assets. if you're running one of the regional central banks, it's very tempting a front run, those buys with insider trading. and the fact that general counsel has given a blessing to their crime wave it just because they passed a law. it's like, you know, and city bank bought travelers insurance, they broke glass steegal, the law has been on the books for decades and then they reco actively made illegal when you have a group of terrorists in america, running the banks like you do now. j. powell, they have no adherence to the rule of law because they have an ideology that says that if we kill somebody in the name of our profit, we're godly. ok, that's america today. that's america today and it's a big problem world. well, i think it's like the fiano system, it encourages that and it's, and it's basically has caused the situation that they say that they wanna stop. for example, like warren buffet a, he's oh it. first of all,

he's always talking about like, oh, how he pays fewer taxes, less a percentage of his income taxes than the secretary? yet he doesn't like willingly pay more. in fact, he always like strives to like pay less and taxes. well, on top of that, for that of a few decades, he pointed out what was true, which was that share buybacks as a bad thing because you're betting against america. and, you know, you could, you could use that money. usually the debt money to buy your share. spec or you could invest in america and invest in production. well, he's one of the top 10. berkshire hathaway is for sure. top 10 share buyback. queens big tact except intel big banks except wells fargo buffet incinerator most cash ever and q 2, the rest lags funded by debt since 2012 share buybacks have totaled $5.00 trillion dollars and corporate debt sword by 4.7 trillion. so in q 2,

the top 10 companies, they did share buybacks of $85000000000.00. they accounted for 43 percent of the total. here's back to 2012, how much they've bought. you see it's accelerating as the project city of the system accelerates apple. facebook, google, berkshire hathaway, microsoft, oracle, j, p, morgan, bank of america, city, and charter are all the ones that bought back the most. but we'll fix your says even today as crazy as this sounds, the 5.5 trillion that the s and p 500 companies incinerated on buying back their own shares is a lot of money. they could have been invested in expansive projects in the u. s. and in labor, in the u. s. rather than in cheap labor overseas and in training or, god forbid the companies could have tried to somewhat less aggressively dodge u. s. income taxes and pay a little bit more given that the u. s. government deficit has been horrendous. for years and has become more horrendous with a corporate tax get of 2017 and has become a lot more horrendous, starting

a march 2020 with a pandemic. but as he points out, they've been borrowing heavily and stead further destabilizing the system further enabling the fed to justify their money printing. and lo and behold, the cycle continues, right? i see, ideology to, to justify the money printing. let's be clear. the $5000000.00 used to buy back stock by warren buffett and others was money that was gifted to them from the central bank at 0 percent interested. in some cases, a negative interest rate. they were paid to borrow money, as you saw in europe, with di elvia made buying tiffany for money that the european central bank gifted them on top of the 0 that they were charging for that money. so this dana, i'll say this again, i'm sorry, but this is the reality folks, this is financial apartheid. we've got to borrow money at $17.00 or 18 percent on our credit card. warren buffer borrows money at 0. there's no difference between that and living in have been tuesday and being cut off because i know that the

results are poverty and that because the part, life expectancy is down, infant mortality is up, wealth and income gap is increasing. thanks. j. palo, atrocious. i want to come back much more coming your way. ah. if you would expect to be of longer meant to be in the image of liberty. oh, see, i'm sorry. this is a wrong expectation. you will have to see a peculiarity. you can't impose the democratic system of the wall and the political order with

a a a ah, with ah and with

new quote is researchable can listen to can he's not live too. sure. right. ok. ah, welcome back to the kaiser report, i max kaiser time. not to return to our conversation where the rec ackerman of

ricks picks wrecked. welcome back. thanks for inviting me on max. who is a pleasure? all right. i wanted to continue talking about the topic from the previous episode in terms of inflation versus deflation. you point out that you've got a situation where the global, the relative markets for is, rests on a bed of us treasury bills. and these u. s. treasury bells are in short supply and they are being printed as well, quickly as possible. but the result is that this is not causing inflation per se, but deflation. dig into it a little bit. it looks to say it's building a deflationary juggernaut that will be far bigger than any inflationary effect we get from. let's say stimulus packages right now. and there's a lot more that's being leveraged out of treasury's, you know, there's been a big bet on the energy patch. and so there's no telling how much of those,

how much of the action and derivatives has been leveraged out from energy resources . but it's no accident, no coincidence that we see oil prices moving up, seemingly irrespective of demand, the cold crude market has become kind of a big play on leverage and inflation ok hold on. so that's not inflationary is, let's say it sits on actual eyes deflation. we keep having to stimulate more and inflate more simply to avoid deflation. but deflation, when it happens, is going to happen so precipitously that there'll be no mechanism really for, for counter acting it with whatever you know, you could get out there with an announcement that everybody, so savings accounted every bank in america, has added 3 zeros to it. but you can understand why that wouldn't do the job. so and $11.00 point that i made the truly basic is that why do we need a quad 2 plus quadrillion, dollar financial edifice just to support

a global economy that does it perhaps a 10th of that and actual goods and services. so the answer is, of course, that the business of planet earth is no longer getting your hands dirty, making things. it's really just shuffling paper. so we built this immensity, everybody sort of living off and supposedly growing wealthy by the, the financial market. but it's so much bigger than what we actually buy and sell that, that sort of that shows you where we're headed. it to that point. what do you make of recent reports that the hands of the largest bank, that our investment groups in america, reportedly made with the hands of the peoples bank of china and senior chinese government officials last week regarding this exact situation that you're talking about this. so it looks on the face of it anyway,

that wall street is trying to get china the bail out, the latest round of bankrupt wall street banks. rick were to get china to at least appear to bail it out in a way that they know will to come in investors. you know, i think it's good that they're talking about how china should spend this whole thing. but we should have learned by now, the child is going to do it its own way. and heaven forbid one of those ways might be to simply let the chips fall where they may, which is not the u. s. way of doing it. ok, let's get back to your phrase on actual eyes deflation. you know, we've been talking about inflation versus the inflation now for probably 10 years. and it's an interesting kind of debate because as you point out the, the global g d p is not driven by making stuff anymore. it's all been financial eyes. and so it's really well operating under a different set of rules. i, you know, i liken it to flying through the bermuda triangle or all your dials and on the dashboard are spinning wildly in different directions and you're completely lost in

there and pretty soon you crash because you don't get good price signals if. if the central bank, you're just printing money for any reason without any economic justification whatsoever. yeah, mal investment. you have no real price signals telling you what's really going on. so you're describing this says essentially fake inflation on actual eyes deflation . and if you have this plane that's flying in this soup of derivatives, but it's actually, if you were to take a step back, it's crashing into the ocean. that just hasn't hit the ocean yet. right? you know, i came across old e mails that it was an exchange between myself and a fellow named fred half good, who used to put some very interesting blog items out on the web. and i, i was saying, you know, i give this whole banking system. we're going to collapse within the next 6 months . what do you want to bet? and of course i wrote that back and i think it was 2008 or so. so with reason

people say, oh you guys have been talking about, the sky is falling for so long. why should anybody believe you? but simple common sense will you, that we're not headed in a good direction that it can't possibly in well, and i guess the, the only thing i could say in defense of my st. my own premature call on disaster is that i lack the imagination to see how pump things could get. and one of the reasons for that is everybody benefits like goal that the one percenters are all getting richer for doing nothing all the time. and it's, it feels sort of like when, when, when everybody wins, except of course, the middle class and, and the have nots. so that's why it's persisted for so long and why folly and hubris could dominate without being challenged, as long as it has. but it, but if you just sort of apply your common sense in what you were just saying,

talking about the, the spinning dials and everything were, were absolutely positively getting there the all the have nots versa they have yachts as me, thanks. all right, so you also right quote, we are in a 4th generation war, not on like klaus is 4th industrial revolution. ok. who's klaus what, what, what, what are you saying there? again, this is an interesting shown brown metaphor. and it is sensually saying that the industrialization or the industrial revolution took place in a way where nobody could have predicted the outcome. it was big. and no one really had the big picture initially, but it just sort of grew and grew and grew and, and is subsumed whatever reality you lived in. so we have the same thing. we've got a financial edifice that nobody understands. we've grown

a system that so radically different from any capitalism that adam smith or david ricardo would have imagine. and we're, we're going to reap the consequences. i have to push back on that. it seems like nothing new under the sun and economic is always comes down to incentives. and when you have the state take away those incentives by printing money, visa v socialism, you have failure and we are free market capitalism that breathes more compact competition. you have economic growth and genuine g, d p. spread throughout the economy. but i get your point. let's talk about supply chain issues that seem to be growing worse. i mean, i'm re the news every single day and i my pops up in unexpected places like, oh, are running out of helium, you know, we can find a ne lithium, you know, or, you know, chips are missing from manufacturing cars, your areas, they wouldn't,

you know, you wouldn't, you didn't know were at risk, you know, are vulnerable. but, you know, these are the, that, that's how supply chains crack up. they, you know, it's like the, like a wheel missing on a shopping cart. you know, it's just like suddenly it doesn't work. it and talk to us about what you think. well, i read that, does that hit the auto makers are going to taken to $22.00 to 2022 will be something like $220000000000.00 because the shortage is and the price of new cars and delivery times have been pushed way way up, you know, you pay a $15000.00 premium for getting a new car and i'll give you like a november delivery date. i think that we had such a swiss watch intricacy of just in time deliveries and inventory that the screwing up that's happened. so far is going to permanently impair the supply chain. i don't think we're ever going to get out of this and it would be very optimistic to say

that it's not going to get worse. so i think we're in real trouble and you know everything from surfboard blanks to styrofoam blanks to make surf boards to you name it the by the most crow shortages labor. and i think the labor shortage is causing the whole american system small business, which is has always been the backbone backbone of the u. s. economy. small businesses are collapsing, you know, i just drove 9000 miles this summer. took a long roadie and you go into something like maryland house to get a snack and 5 of the 6 snack places are closed. nobody can get help. and we know they're out there. there are people who could fill all those jobs, but obviously the government stimulus packages have have dis, incentivized work. so the supply chain things including the problems including the labor shortage. they're just going to get worse. and it seems like it's getting crazy. dangerous. for example, drivers needed to drive gas, you know,

big gas tankers around to fill gas stations. they're in short supply. so they're gonna change they requirement from getting that 6 months of training that you need to learn how to operate. one of those regs to just, hey, you know, you got a driver's license here, you go drive an oil rank. he was gonna drive gas, right? right. okay. i mean, that sounds like such an infrastructure collapse and such a disregard for, for safety that and you know, we're going to start to see like, what you might call an a but an apocalyptic breakdown. i mean, it gets, it's going to get bad right? there would same, i absolutely agree and you know, the, the old you just can't find good help anymore. but i'm sure you've and everybody else is noticed, no matter where you go, whether it's a restaurant or some place where there's a counter and someone's on the other side trying to help you. the help is getting worse. they're less knowledgeable at the, at the online level. you can't get support for anything. every company is avoiding

talking to its customers because they don't have the manpower to talk to them. and everywhere you get that message. it says, you know, we have an unusual long wait time too many. keep too many customers bowling is the fact is that's not the problem. the problem is to few people to support those calls . so you know that this isn't any hypothesis. everybody you seeing it all around them. now that just businesses are doing business and sloppier and sloppier ways. yeah. and the meat is comically not covering any of this. the, it's really they, i'm at m s and be say, nbc, abc, cbs, they really become product like in their ignorance and they total, you know, non coverage of anything that's happening out there. they just carry these headlines to happy talk headlines and how it's early. it's rick nutty. it's crazy. yeah. well they all come out of our better j schools, columbia, northwestern, and missouri. and you think that the, the teachers have never, you know, spend

a day in real journalism. they're just sort of, i was, i reading the other day. it was about the idea of reparation journalism that we were we, we've already become apologetic and in the way we govern. but now the newspapers are supposed to essentially turn advocate and not only just trying to redress perceived injustices of the past. but objectivity is being essentially lost in journalism. the idea is that a reporter should go out there and, and make a ruckus according to his, his idea of injustice his or her. so it's, it's a very, very bad trend when, when journalist can't even cover the news or all out there advocating for whatever break ackerman the legend over there are ricks picked newsletter go for the options, training. stay for the philosophy. rick, thanks. bring on kaiser report. great. pleasure. max again. thanks for inviting me

. all right, that's what i do for this addition of the kaiser report with may max kaiser. stay therapy. one thing, i guess, rick ackerman of rex pix. until next time i all ah join me every posted on the alex simon. sure. i'll be speaking to guess in the world. politics spoke business. i'm show business. i'll see you then. ah. he bought no one. no, sir. no, no. admiral hooker, no, no. what go more shrill than what they should end up unit

73. 1 was a unique organization in the history of the world. what they were trying to do was to simply do nothing short and build the most powerful and most deadly biological weapons program. that the world had ever known and grill. oh, you know, to production with it gives you, oh sure. did enough fuel to when you saw new rochelle you on more more general market thought is meant nguyen from all one of our new and i got the much sale. i got your name. i got on monday. i wish to know about joy. oh, new i love food in room or got more polish dinner jr.

let's. i had to put the mother on all our buddy built a couch. nice. oh boy festival. to go. that is your oh, what the on this the wow. she my a new order. i'm all, i can send more on all said mom, good student, i don't the you know a lot on or put them out. thank you. bye. look forward to talking to you all that technology should work for people. a robot must obey the orders given by human beings. where's that short or is it conflict with the 1st law? sure, i then just in asia, we should be very careful about artificial intelligence. at the point obviously is too great trust rather than fear. i would like to take on various jobs with artificial intelligence, real summoning with a

robot must protect its own existence. with a, from 10 to tankers, brittany calls in the army to alleviate pressure at the petro pumps. as people panic by fuel, full say the public blames the media for stroking hysteria, although many points to the government. the news is the need on playing the media with media. with me, while europe, the gas prices, had a new hi with the german government, wanting people to prepare for a chilly month ahead. at the same time as the countries, the energy regulator is still yet to grant a license for rushes north street to gas pipeline. and a paramount.