[000:00:00;00] ah ah, who is patients already forced to key for hours to get into hospitals in the u. k. paramedics, one of an absolute, unprecedented crisis facing the ambulance service that the army is put on stand by to help with several protest is reportedly short dads and more than a 100 injured as violence. rocks in the streets of saddam from military takeover reduces the country to pay off on fueling disputes. europe's gas prices seized more rigorous and maj, within the u, both ahead of and during an emergency energy. me think about how to prevent future

print shops. those are the headlines up next to notting international. if the kaiser report ah max guys, you're welcome to the kaiser 40 want the latest max kaiser news. i got a book coming out of my quotes. i've got a piece going on big coin magazine and we're doing a show and i'll salvador and i'll zante bitcoin beach, follow me on twitter. max kaiser. m a x k e i s e r. the address is right on the tire on right under my face. huh. stacy, hey, it's nice to see you with. oh, hey, you know, while you boast about yourself, i'm going to boast of a little bit about myself as well. because here is a photo of me and i had the chance to pose with us monetary policy right here.

oh, it's going, stacy? yes. looks like a central bank on fire. that is the economy, the financial system, the fiscal system. everything is on fire, right? what i mean, our dollar, everything is on fire. so yes, that's what's called a mean. and this mean is going to say, it turns out this week that 1st of all, we have the tragedy of the treadmill. but before we get to that, i want to show you the evidence that big coin is all about piece because it is the language of diplomacy. when we're used to be french, that was considered the language of diplomacy. now it is bitcoin and we have the evidence of that with jo biden's own statement. the administration's statement regarding this new york times reports that the biden administration warned that digital currency is posed a threat to america sanctions program and said in a new report that the u. s. needed to modernize how sanctions are deployed so that

they remained an effective national security tool. basically, i bitcoin forces diplomacy, right? because if you are the only nation in 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 sole superpower in terms of the fee at currency, the settlement layer. and now bit coin makes that said 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 the game theory favors piece over war. so sanctions are being avoided by big coin because nations are simply doing it and run around the dollar to settle. 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 similar to a outline other forms of warfare, no sanctions. it's a form. it's a declaration of war. other forms of warfare could be dropping a bomb. for example, the, you know, america is the only country in the world. they can drop a bomb, 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 equanimity and diplomacy. because you cannot take somebody's bitcoin, it's on confiscated will you can only inquire more bitcoin by offering an open hand and something an exchange that will be accepted in exchange for bitcoin. well, clearly the by them administration is conceding the fact that bitcoin is neutral for real. it can't be gained, 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 question 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 biden administration 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 sarge case, in other cases where the payments companies like pay pal and visa master charge sensor transactions for political ends and 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 one of 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 sensor ball on confiscate

a ball perfect money called bitcoin. right? so, i mean we, we see the how the us dollar as the here. you know, here i was again posing and of that monetary policy. and for all the problems it causes like this is that kaiser report essentially the trip and de la the acidity shap. all of these things are caused by this. all of the wealth and income gap caused by this, this is, this is the photo that cause 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 fall theat system is this, that's it. and we'll show you some more evidence of this. packet 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 at the national guard may be sent in to help off load 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 you can't hide or 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 that they 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 demented minds. and so we've come up with, they've come up with a phrase called di treadmill the, what is the call, the, it's the delayed tragedy 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 delay 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 were on harder and

harder, faster and faster to stay in the same place. that was the set up with the 0 percent interest rate. if the print harder and harder and faster and faster just to stay in the same place, more and more debt to have the same number of g d p growth more and more drilling of fracking to get the same amount of oil that you said just like put a straw on the ground and it would pop out more and more jobs. if with inflation, you have to have like 234 jobs or more and more stimulus checks, all sorts of credits and stimulus checks and programs and policies to like, keep on getting money right. so more accurate description would be the fatal treadmill that you're running on a treadmill to death. the red queen syndrome, in the story, alice in wonderland. it's a metaphor for the hopelessness and 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 for telling the read queen syndrome. it's telling you, this is an a tie. this picture tells a 1000 words a 1000 episodes a kaiser report or contain this is the 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 name of all means. this is the thing 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 mind of the population,

then you start seeing the rapidly escalating inflation numbers because people start demanding higher salaries, they start consuming faster. yet thousands of tankers. if 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 is that was supposed to be transitory, is obviously becoming permanent. the supply chain problems are supposed to be a transitory they could be permanent. if you look at the, was it at the washington post? one of the 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 woes. 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 by 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 i remember during the 7 days he asked people to deal with the malays that had set in in america life. and this gave rise to the reagan thatcher era, shortly thereafter because people were unwilling to use hit the break in any way. so i think, and similarly, we may see this moment of pause followed by rapid nationalization in the hyper capitalization and neoliberalism, 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 ism that bitcoin is the last ism 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? ah, ah ah ah, oh yeah, it said it has to be rash to be able to afford any time and find the luxury head for sure. despite having the most expensive health care system in the world,

we have poor life expectancy. we have higher infant mortality. we have more deaths from treatable causes. so americans are suffering every day from it. it's as if these people don't count. i saw how they can choose your customers and dump a sick so also right and satisfy their wall street investors. no parents should have to see what i saw. so if you're denying payment for someone's care, your make life and death decision and determine to get to live and who dies to me, that's best getting away with murder. ah, welcome back to the kaiser report, i max taiser time now to turn to charles to smith. he's got

a website called of 2 minds dot com. it's a must re charles, welcome back. thank you, rex. always, my pleasure. now, in a low key kind of way, you've become the oracle of why your predictions. i've 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 the 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 set maximizing profit as a small organization, 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 the problem of having all the, ga, please, or monopolies. and without competition, you end up with agility in the system. and when it breaks, it breaks catastrophically and the time to take to rebuild a competitive element of this economy or talking decades. and in the meantime, we're going to looks like we're in for some tough times down nearly 2 years into the global pandemic shortages are getting worse, not better. the white house calls that the tragedy of delayed treadmill, which is, or 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 gas crisis of 973, where there were long lines and you know, a panic and an oil and gas shortage of 7979. so 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 a will. we can, you know, it's shocking jive 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 to maximize their own private gain, then you strip out all the redundancy and resilience out of your supply chain. it's

going to take quite an effort to rebuild those from the ground up. yeah, the incentive in the 1970 s crisis from the middle eastern countries was exceptionally just extortion. and there wasn't any game 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 try to extort anybody, but because it's extremely fragile and it couldn't withstand the kind of shock that we had and cove it. and now we've got this as you've say, systemic problems also leading into chip shortages are hitting manufacturing. according to 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. it. unfortunately, these things never seem to happen

a goal. we would love gold at market failure years ago. so get the 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 has happened in china's immersion says the largest economy in the world by, you know, some measures is 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 to hundreds or thousands. and of course, these are a massive development use, a huge amount of concrete and copper and iron and all those kind 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 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 g, 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. and it's actually a hospital disguise as a country. now with china, you've got a 3rd lover,

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, year or 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, the, you know, real estate section. and also put a collar 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 u. s. 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're 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 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 of that developing but not a wholesale wide scale thought about people becoming more localized and self sufficient, growing their own food, etc. what, what's 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 is 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 change, atrophied, you know, that you don't just have no warrant 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 sort of 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 dead knew how to keep it going. then then there's nobody that knowledge has been washed and so we also have that problem in the u. s . yeah, in china, getting back to china for a 2nd. there's 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 off. yes. you know, max, it goes back to some, some of our 1st conversations we had in paris in 2000, i don't know, 10 or 11 when we, you and i were talking about this, these 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 pressure 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 the, 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 a dignity in being part of a 100000 year culture, which they're a part of. but in the us, of course, we don't have that. it's just the theory. either you're wealthy or you're 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. max is are always my pleasure. all right, not going to do it for this edition of kaiser report with me. max kaiser and stacy herbert want to thank our gas charles to smith of 2 minds dot com is his website until next time via ah,

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