is the language of diplomacy. lambert used to be french, that was considered the language of diplomacy. now it is bitcoin, and we have the evidence of that. with joe biden's own statement, the administration's statement regarding this new york times report that the biden administration warned that digital currency is posed a threat to america as sanctions program. and said in the new report that the u. s . needed to modernize how sanctions are deployed. so that they remained an effective national security tool, basically a big coin forces diplomacy, right? because if you are the only nation on the world with one nuclear bomb that you can kill everybody else, there's no mutually assured destruction in that situation, right? so everybody abides by what they obey whatever you command. so we have mutually assured destruction in the nuclear weapons programs around the world. so that's why we have fewer wars between great powers. but here we've had the,

the sole superpower in terms of the fee at currency, the settlement layer. and now bit coin makes that so that they have to go to the negotiating table. they have to deal because sanctions no longer work, right? mutually assured destruction of the atomic weapons is an example of game theory in action with kinetic weaponry. we've never had it in finance before. and now we deal with big coin and we see the game theory kicking in game theory favors piece over war. so sanctions are being avoided by big coin because nations are simply doing an android around a dollar to subtle. so a big coin, the transaction is the settlement. you don't need a 3rd party and it's up and running for 12 years. it's guaranteed. it's going to work. so this is so similar to outlying, other forms of affair. you know, sanctions, it's a form. it's

a declaration of war. other forms of warfare could be dropping a bomb, for example. you know, america is the only country in the world that can drop obama, any other country in the world and get away with it. and no one really questions it . so that's an asymmetric relationship between one country and the rest of the world. so a big coin you're removing america's place as, quote unquote, sole superpower. and you're seeding to a new world order of equity and diplomacy. because you cannot take somebody's bitcoin, it's on confiscated bull. you can only inquire more bitcoin by offering an open hand and something in exchange that will be accepted in exchange for bitcoin. well, clearly by then administration is conceding the fact that big coin is neutral for real. it can't be gain. one party cannot gain control over it, thus they're saying, and the have, i'm from the wall street journal journal, read find in administration, tram use of sanctions and

a foreign policy shift. so they concede defeat, they're saying we can't use this anymore. and in particular, they mentioned that many foreign governments, including some allies, have often criticize the u. s. use as bad policy and long arm justice sanctions. advocates have also questioned their effectiveness and quote, worried about undermining us global power and spurring the creation of alternative financial systems. and the use of crypto currency is beyond us reach, regardless of like war and all that sort of stuff. we pointed this out back in 2009, 2010. when obama took a ran off the swift system, we said alternative would emerge. the wall street journal, while the by the new ministration is now conceding that we were right. the kaiser report was right. 10 years ago. we got it right. yeah. and it also applies down to the level of fancy sanction or anti censorship for payments. and we saw that in the julia saw case in other cases where the payments companies like pay pal and visa

master charge sensor transactions for political ends. and ab remove themselves from the neutrality. they should be just a facilitating payments. now they're being dis, intermediate as well. even peter teal, who was on the founders of pe pals, come out last week and said, i really feel under invested in big coin. and i really thing that this is the future. so you see that to tonic shift. now away from the legacy payment rail systems to this on the sense horrible on confiscated ball, perfect money called bitcoin. right? so i mean we, we see the how the u. s. dollar as the hero. you know, here i was again, posing in front of that monetary policy and all the problems that causes like this is that kaiser report essentially the tiffany de la the acidity trap. all of these things are caused by this. all of the wealth and income gap caused by this, this is, this isn't a photo that cost it off to the mean that constant all way. you know, in terms of the shortages that are happening in this world that was set up the

world set up by the us dollar file theat system is this, that's it. and we'll show you some more evidence of this package jokes the supply chain crisis is the tragedy of the delayed treadmill press. secretary is accused of down playing scandal that has prompted white house to consider sending in the national guard. as the national guard may be sent in to help offload containers to deliver, you know, consumer goods. but the thing is we're also like seeing, you know, wrapping up prices, jumping prices of gasoline, energy of food prices, where they're not, we get food shortages. we'll see. right, inflation has been a problem for many years, but the administration used a bald faced lie too high. the fact they could actually use the term deflation to refer to inflation. and then prices got out of control and he can hide her any more

. and they said it was transitory, that's a lie, as we said on the show, it's now structural and systemic, and secular, it's going to be with us for a number of years. i also said that the language would become obtuse and there would be much pretzel logic, as i called it, to describe all the contortions are there, would use verbal contortions to try to get people to either deflect away from the fact that there's this runaway inflation or to try to describe it in a way that somehow makes sense to their demented minds, in this case literally demanded minds. and so we've come up with, they've come up with a phrase called the treadmill the, what is a call the, it's the delayed treadmill, delayed treadmill, a delayed treadmill. think about it, that those are 2 words. you put them together and they absolutely make no sense as i say, as i warned you, as i told you many, many weeks ago that the language you get more off the charts ridiculous. so delayed treadmill to describe the problems of inflation that were predictable,

given the money printing and price single destruction through market manipulation. you know, where are we going to go with this, this, this undermining of language and destruction of language? i will tell you again, this mean, this is the economy. this is the financial system. this is the monetary system on fire, the treadmills, think of one and a metaphor we've used often, the red queen sent them if they're on harder and harder, faster and faster to stay in the same place. that was the set up with the 0 percent interest rate. you have to print harder and harder and fast and faster just to stay in the same place. more and more debt to have the same number of g d, p growth. ok more and more drilling of fracking to get the same amount of oil that used to just like put a straw on the ground and it would pop out more and more jobs if with inflation. yeah, of like 234 jobs or more and more stimulus checks,

all sorts of credits and stimulus. jackson programs and policies to like, keep on getting money. right. so a more accurate description would be the fatal treadmill that you're running on a treadmill to death. the red claim syndrome in the story, alice in wonderland. it's a metaphor for the hopelessness, an existential angst that comes with modernity. but that red queen didn't die on the treadmill. whereas america is going to die on the fatal treadmill brought on by money printing that many have warned about. but they won't say money printing. well, i even have if you look closely, i have a crown on in this mean. so that is foretelling the red queen syndrome. it's telling you this is an entire, this picture tells a 1000 words a 1000 episodes a kaiser report or contain this is rosetta stone of names and kaiser report.

understanding this me what stacy wearing a crime. i don't know if you've seen it a close enough or not, but that stacy wearing a crown in front of a burning building. this is the key mean of all means this is think constructing all you need to know about our modern life in this mean. so i also want to turn to it, you know, this inflation mindset. we brought it up almost a year ago that once it sets in the mind of the population, then you start seeing the rapidly escalating inflation numbers because people start demanding higher salaries, they start consuming faster. you get thousands of tankers, of container ships stuck outside the long beach port. you know, these things are part of the whole mentality of the mindset of inflation anything. so in terms of this, this, you know, that was supposed be transitory is obviously becoming permanent. the supply chain problems are supposed to be transitory. they could be permanent. if you look at the

wash at the washington post. one of the, you know, papers that all the washington d. c elite abide by. here's their opinion piece about the supply chain problems. don't rant about short staffed stores and supply chain was all i can do is hope for the best, like everybody else and keep those expectations reasonable. eventually the supply chain will get straightened out. american consumers might have been spoiled, but generations of them have also dealt with shortages of some kind gasoline in the seventy's food rationing in the forty's. housing in the twenty's when cities such as detroit were booming. now it's our turn to make adjustments. so have lower expectations, max well, you know, having lower expectations. that's very jimmy carter, like a member during the 7 days he asked people to deal with the malays that had set in in america life. this gave rise to the reagan faster era, surely thereafter,

because people were unwilling to hit the break. and anyway, so i think so. similarly, we may see this moment of pause followed by rapid nationalization and hyper capitalization, a neo liberalism, an attempt there anyway. but of course, china might have another opinion. i think the queen has another opinion and it's too late to adopt any other is them? bitcoin is the last is a put that in your pipe and smoke it. hey, we're going to take a break. and when we come back, what's more coming your way with ah,

and i make no borders line to case and you face as emerge. we don't have authority. we don't to look back seen the whole world leads to take action and be ready. people are judgment. 2 common crisis with we can do better, we should be doing better. everyone is contributing each in their own way, but we also know that this crisis will not go on forever. the challenge is great, the response has been massive. so many good people are helping us. it makes us feel very proud that we are in it together with oh, driven by drink shaped bankers and those with

dares sinks. we dare to ask oh, if you want something done, right. do it yourself. the acronym d i y, i do it yourself, has now become the name for a new genre of online videos. we do popular with more than a year away. i need some acres. yup. school that he like no one you can't. the was more than any more that up. so the book a deal if people use scrap materials and whatever's at hand to rig up all kinds of

stuff from household items to pump action. squid guns, furniture company from scratch ramon, the stove must be out of my own little pool. with the best part is people want to watch. millions of viewers spend url is seeing how a person they've never met. and who's half way round the world assembles the contraption? no one else needs me. talk to a corporate arrange to filter for i can which could just move my feet when you minute cities like user d, looking at the clock. will you flew to like watching which cuz it's still pretty ah, welcome back to the kaiser report. i max taiser time now to turn to charles hugh swift. he's got a website called of 2 minds dot com. it's a mastery charles,

welcome back. thank you. rex always my pleasure. now in a low key kind of way. you've become the oracle of a white eat your predictions of all come true. supply chains are breaking down as you predicted long before the pandemic, but now there is an actual crisis. what do the supply chain issues we are seeing everywhere? tell us about the economy. charles. ok, maxwell, that's a great question. and i guess my answer is that what i bring to the table is, is like trying to look at things as a system, right. and so then you look at like, how is this system structured and is that going to be resilient system, or is it going to be a fragile system? and so if you're going to offset maximizing profit as a sole organisation goal of your system, then you're going to end up with a fragile system which is why we have what we have. and so, you know, in other words, to maximize profit, you end up with one supplier of certain components. and then when that supplier

gets trashed or shut down for whatever reason, then the dominoes start falling. busy all the way from that one, supplier near fukushima, japan, all the way to the local wal mart. right? so it's the problem of having all a, ga, please, or monopolies. and without competition, you end up with fidelity in the system. and when it breaks, it breaks catastrophically been the time the take to rebuild the competitive element of this economy we're talking decades. and in the meantime, we're going to looks like are in for some tough times. down nearly 2 years into the global pandemic shortages are getting worse. not better. the white house, paul's, that the tragedy of the delayed treadmill, which is the one of the most awkward phrases i've ever read coming out of the white house. usually they're a bit more poetic than that, and yet the administration is also sending in the national guard to help out what happens if we get actual shortages of food and gasoline. charles?

yeah, exactly. and those of us who are a little long in tooth, remember the, the gas crisis of 1973, where there were long lines and you know, a panic. and then oil gas shortage of $7979.00. so in america had these sort of short term crises, but what i think we're totally unprepared for is a long term crisis of scarcity. you know, the systemic. it's not just like, oh, well we can, you know, shock and drive our way through this and can weeks. it's all going to be fixed. no, that's not, that's not the situation we have. so as to your point, if you set up a system of oligarchies controlling everything and maximize their own private gain, then you strip out all the redundancy and resilience out of your supply change that's going to take quite an effort to rebuild those from the ground up yeah,

the incentive and the $970.00 crisis from the middle eastern countries was extensively just extortion. and there was an endgame. they were going to choke the system until they get their money here. it's different in that the systemically the system is breaking apart and not because somebody purposefully tried to extort anybody, but because it was extremely fragile and it couldn't withstand the kind of shock that we had in carpet. and now we've got this as you say, systemic problems also leading into chip shortages are hitting manufacturing according to a yahoo finance. there are only $20000.00 tons of copper left of the london metal exchange, which is about what china uses in one day. so here is like another dimension to this, you've got the london metals exchange talking about actually running out of copper, that market hitting market failure. unfortunately, these things never seem to happen to gold. we would love golden market failure years ago. so it gets a price higher,

but for some reason that never happens in goal, but it is happening in copper, charles, right? and so i think we have to look at what one of the big changes that's happened in china's immersion says, the largest economy in the world by, you know, some measures. and it's certainly equal to the u. s. by any measure. and so the problem here is that china's economy is incredibly dependent on building new high rises in new residential towers by the hundreds or thousands. and of course, these are a massive development use, a huge amount of concrete and copper and iron and all those kinds of resources. and so if you're building like $70000000.00 units per year or 2, you're going to dominate the global supply chains, right? and, and so in china is kind of put the world in advice as well as their own economy is

because if they stop building those tens of millions, the units, their economy falters and, and then you get a supply chain shock of suddenly there's reduce demand and then the price craters and then producers can't make a profit, so they just let the copper or see sit there in the mine raise their days. if you can't make a profit, then you're not going to produce the copper. and so then you get a shortage from a collapse of, of price. right? i guess put this into perspective, you know, china is incredibly relying down the property, mark sector for g d p growth in the us in russia for example. i think with 12 to 15 percent of g d p as energy related in the united states, up to 20 percent of g d. p is health care related in america. that's actually a hospital disguise as a country. now with china, you've got a 3rd lobe or a 3rd of the entire g, d p is related to property real estate,

financial activity that goes along with that. and we're hearing a lot of things happening in china. every grand, for example, and there's 2 schools of thought that this is going to be a local contained issue, or it could be another layman moment global contagion here. so far west in the united states, you're actually close to the east. you can, i'm sure, as you can see china from your window that's how far west you are america. so is this, or is there any validity to this charles? well, you know, max, i have visited china from the year 2000 and i'm, so i have a little bit of personal history and we have a lot of, you know, chinese friends with experience in their economy and their state. so i have a little bit of perspective, i'm not an expert, i don't read mandarin, but i can't say that i see. i see president, she's effort to really kind of orient the chinese economy as,

as profoundly correct. in other words, his reading of it is a these, you know, a symmetries and imbalances are not healthy for china's long term future. and so he's trying to raise a kind of correct the course of the economy by trying to shrink the, you know, real estate section. and also put a color on the tech oligarchs, which he rightly perceives as, as threats to their communist party saw control. so he's trying to course correct here, but it's going to be difficult because when you allow your economy to become dependent on one sector, when that sector has to shrink, then your whole economy is going to shrink to. and of course, here in the us, as you say, sick care is 20 percent of the economy. and that if the idea that that would have to shrink to, you know, right, the ship here in the u. s. is, is, is impossible. so china has the advantage of, of a leadership that can be decisive,

where we are so in thrall to only garbage oligarchy. so we're just stuck in the mud . we can't seem to change in any systemic fashion, right? for the us economy to get better. that's be a large percentage of the population that actually gets healthy and that's not likely. and good point. so if for years talked about localisation as a solution and we see pockets about developing but not a wholesale wide scale thought about people becoming more localized and self sufficient, growing their own food, etc. what was the current thinking on that? well, that's a great topic. maxon, i'm glad you bring it up because you know, a lot of people and myself included, talk about it, but it's all like, well, how does that actually happen? how do we make that happen? and of course, the scarcity is a pretty good driver. because if you can't find any toilet paper or fresh apples or anything else in your local store, you might start wondering, well, gee, why don't we make that stuff here?

you know, and of course, we know the reason why we don't make anything here or grow any apples or that we used to in various places in the global supply chain said, hey, we can ship this same item 5000 miles. and we're going to make a dime more profit per pound or item, so we're going to do it. so. so then all the local supply chains atrophied, you know that you don't just have no warm people growing food or no plans making toilet paper locally. you also have no distribution for right, all the distribution is set up to come through long beach from china or from mexico or wherever. so, in other words, the infrastructure that allowed for localization has atrophied in the u. s. and so to read, you have to rebuild the whole supply chain. and of course, that also includes people, you know, that where you lay off all those old guys that knew how to run the plan and all the, the elderly people like that that knew how to keep it going. and then there's

nobody that knowledge has been washed. and so we also have that problem in the us. yeah. in china, getting back to china for a 2nd. there is a quote laying flat movement or young people decide they would rather not work and just lay flat and play video games in the stag question of the seventy's, are we talking about the seventy's people were desperate to work. now there are 10000000 jobs available, but no takers. right? so it's like a flip side of the 1970s. what about this labor shortage? oh, the only solution seems to be that they're gonna have to start paying people more money or off. you know, max, it goes back to some, some of our 1st conversations we had in paris in 2000, i don't know of ken or 11 when we, you and i were talking about this, this large, like from a marxist perspective. you know, and i think that what it's really clear that labor has been degraded and diminished

for at least 40 years. right. in other words, as you say, it's wages, but it's also working conditions. you know that the working conditions have become abominable and across the entire spectrum from, from highly paid, people being pressured to work, you know, all the time to speeding up a fast food, you know, production, everything is now much more skewed against people working and the labor force and it's all skewed to the benefit of the billionaires and, and the oligarchs. and so that is why i think there's laying flat in china and why there's the great resignation. here in the u. s. people are just sick and tired of working longer and harder and getting less for their money and not getting any respect. yeah, now respect and dignity, which in america is particularly dangerous because there's no cultural history. so

in europe, people might not be working, but they have dignity in being part of a 100000 year culture, which they are a part of. but in the us, of course, we don't have that. it's just the theory. either you're wealthy or a piece of garbage essentially. but anyway, we're going to take a little high interest and told segment to but for now thanks for big on kaiser report. thank you so much matches are always my pleasure. all right, not going to do it for this edition of kaiser report with me. my skies are stacey herbert want to thank our gas charles to smith of 2 minds dot com is his website until next time bio. ah. so what we've got to do is identify the threats that we have. it's crazy even foundation, let it be an arms race is on offensive bearing dramatic development only personally and getting to resist. i don't see how that strategy will be successful,

very difficult time time to sit down and talk. ah i mm. he died. i cried.

and i just kind of slept the whole time. i was there. no one really thought anything different. you just all thought i just didn't feel good on the way for the surgery, his lungs failed. 30 seconds when i killed him. i had gotten stuck with so many needles that day in 2019 don't to started talking about a new wide spread disease that caused severe lung damage. here's a few points that were really to turn in. all of the patients were diagnosed with a lung injury associated with using electronic cigarettes or facing products. he pulled this out. he ripped out. holy crap, he's gonna die. oh no, he's been better. it was, i wouldn't want my worst enemy to ever go through that amount

of breath. with this hours headline stories with patients all ready for stick queue for hours to get into hospitals in the u. k. paramedics warren, of an utterly unprecedented crisis facing the ambulance service that says the army put on stand by to help cope with the winter rush. we hear from a doctor on the problem. around 5700000 people on waiting lists with which it se complicated to get worse before it gets better. several protesters are reportedly shots and kills, and more than a 100 injured violence rubs on the streets of sudan for a military takeover. reduces the country to chaos and

fueling disputes. europe's gas.