worse like gymnastics in swimming here, is that documentary? see it on our t. ah . gunfire is heard, clash is robbed and tear. gas is deployed as a crisis deepens on the border between poland and della ruth, that's as a large crowd of migrants and refugees stormed at frontier and to polish territory . the french police officer survives a stabbing thanks to his val approved beth. and an incident that is reportedly being investigated as a possible act of terrorism with vaccine divisions that spark protests in the us after a short attempt to port temporarily block biden administration's plan, composed compulsory coven shots on private ben. those are your headlines this an

hour. i'll be back with another look at about nurse times. there was, this is our international good. i'm match kaiser. we're going to dig into global macro economics. and once again, visit the treacherous path of our central planners who control the money printing? oh yeah, stacy? well, max, i came up with a term saying strap in and get ready for squid. well, for you out there in the world, you might not know about this thing called squid, which is like a digital theat scam, sort of situation, which was a scam coin, digital coin created at a thin air, and it went parabolic. so parabolic,

that it got up to over 2 trillion dollars and market cap and then within a fraction of a 2nd collapse down to 0. that is what i'm saying is where we have to get ready for that. that's like hyperinflation, right? that's what happens. it goes up to like enormous amount. everybody is fabulously wealthy. if you add it all up on paper until the rug is polled. so here's an example of what we're starting to see in the headlines. british pound plunges more than one percent. after shop bank of england decision, bank of england, unexpectedly kept rates unchanged. sterling is now the worst performing g 10 currency. so there you see a quite a plunge in terms of displacement of economic activity. of course, it's a, you know, it's one of the bigger and the top 5 currencies in the world. so, and so a lot of when it makes that sort of move, it's huge ripples. right, right,

right. well, the bank of england unchanged that near 0, near a p and central bank, unchanged it near 0 federal reserve bank of america unchanged, that near 0. that's the latest moves, or lack of lives by these 3 major central banks, that some would argue, control the global economy for the most part because they have the greatest reach. they've got the greatest military strength, the greatest influence post world war 2. and they all are talking about raising rates at some point, the future as they've been saying that for 20 years. but the baseline fact is that you cannot taper a ponzi scheme, right? the money printing is the base layer for this huge permit scheme. that now is spilling over into a hyper inflationary collapse of the viet monies against assets and particularly against big coin. but we're at, we're now in the crack up boom phase. that was articulated by economist time in

minsky. and this is exactly why mar germany where people are fleeing the fee of money into assets like stocks for the time being an escape and the, the result very quickly. now, as we've been predicting now for at least 5 or 6 years here and cars report and documenting every step of the way every lie told by all of the central bankers are all lies. and the proof is in what's happening right now. right. and again, you know, strap and get ready for squid, because the strap in part is like a, it's super exciting. at 1st. it feels great. here. all euphoric, every thing is like, yeah, keep printing, keep printing, keep printing everybody's excited. just like a banker. you know, the bankers get really excited when bad economic news happens because they know they're going to get some more free money. so until it all classes and it collapses, suddenly it doesn't collapse like slowly it collapses. secondly,

and so the economics of these rug bulls is really important, and the psychology of these rug pulls to see like when everything is pulled out from under the economy. and it was during the pandemic, right? we, we literally pulled the rug on the entire economy, locked everything down, shut everything down, so it's still an ongoing thing. it, it is all around us falling apart and we see it. we see that shortage as we see the supply chain disruptions. we see it all, we can see it, but it's, it still feels euphoric and fun, right? because everything's going up. markets keep on hitting all time new highs. but here you're still seeing sort of signs of just like with this squid scam coin that happened what it was, is like it went up to over $2000.00 a point because everybody could buy, but you could not sell it. so this was an interesting take here on the washington post. my latest american airlines cancellations are a window into why people are so upset. quote,

if we want to understand the frustrations of roiling americans and the sudden popularity of let's go. brandon. the cancellation imbroglio is actually a good place to start, so they're calling it skimp lation. so everybody has all these bite and bucks are getting lowes of money. you feel you for, you want to go spend it. but everybody has them, including the crew that work on the ground, put your luggage into the plains, the stewardesses and stewards. they are also getting all these bite and bugs. why do they want to show up to work? so everybody's wanting to spend their money. and everybody including all the workers that would normally prepare the food for you at the restaurant or, or, you know, man, the flights during the there during the actual flight. nobody wants to show up. so everybody is getting angry and frustration is building. right, right. price signals are deteriorating in the economy. and the difference between,

let's say, a capitalist economy and a socialist economy. and in this economy where money is being printed and handed out without any concern in terms of the economic impact. what happens is you get mis allocation of capital, which generates more bad price signals, which policy makers look at and then misinterpret and then their response is to print more money. and the whole negative loop gets exacerbated to the point of systemic failure. so this is exactly the case if you had, let's say the engine of your car is a little bit of a rattle starting in the engine. you hear it rattling and then it reinforces itself over the course of 20 or 30 miles. and then the engine is systemically broken and then you go to a dead halt, the dead stop. so the economy, a suffering, something similar, the price signals, the mechanism, the transfer of how to allocate resources between 2 parties and the free market

capital a system is broken and now we're coming to a dead stop, right? and we're all bite. and buck gurus, we've got all these bucks these free bite of bucks, and we want to spend it the same happens, however, across the entire spectrum. so all of us in a think we're getting to live like a private equity or hedge fund guy who only has to work one hour a week, calls up the fed, should anything go wrong and money gets printed. so, you know, on top of that you're, you're seeing that, that, you know, the actual mean sort of stocks where it's all a figment of our imagination, the entire it can be a tire economy is a figment of our imagination, really at this point, as if or a figment of jo biden's imagination will come back for a 2nd. labor is really having a moment here because they're exercising their collective bargaining position 1st time in decades. and i've often said many times that as long as the central bank is

able to change the price of money, so interest rates outside of a free market mechanism. labor should be able to demand a wages that are higher, you know, minimum wage. they should be able to increase minimum wage if you want to get rid of the minimum wage, then you also have to get rid of the central bank. but you can have a central bank for the plutocrats to scan the system and then prevent labor from getting a wage commander with the money printing. if the hourly wage in america right now, if it kept track with the money printing for the plutocrats would be $50.00 to $60.00 an hour right now. that's where it should be in this environment. so now labor figured this out there saying, you know what, we should get 50 or $60.00 an hour and we're not going to go to work. and because we're strategically important, just like the banks in 2008, remember they said we're systemically important. you need to balance out. now workers are saying we're systemically important. you need to give us money and we'll just stay home and that's fine. you know, one of the threats that has always happened to them is a, we're going to out source your job. obviously we're, so we have pandemic permanent locked down. that's difficult,

right. and all of the cargo ships being totally backed up for miles on ends. you know, that's not a really good threat anymore. and the other was that we would replace you with robots or a i. so i want to look at a story about a, i and the failure of a i, you know, so in much of the western world we have the property speculator. usually it used to be the mom and pop started. property speculator, buy a property, fix it up and flip it while then zillow got into the game. and that's an app which gives you as estimate of what your house might be worth. and people got obsessed with that and fixing up houses and stuff. so zillow got into that game in 2019. they started actually buying properties because their algorithm, their a, i knew better just like all the quantity back in 22008. they knew like how to package up all of these sub prime debts into something that would actually be aaa right?

well, zillow quit home flipping business sites, inability to forecast prices at going back to your story about capitalism like to be able to predict prices that you never can imagine the subprime that was this idea that you could predict the market going out 5 or 10 years and package subprime mortgages, that would be acceptable to the market. it totally blew up cause a global financial crisis. long term capital management, same thing, nobel prize. when economists, they were in the hedge fund business, they had it all figured out and blew up, required a massive bail out. alan greenspan at a lower rate, $987.00 stock market crash. it was, we figured out how to get the features mark in chicago and the cash market, new york, and we've created a product called portfolio insurance. well, they blow up because the quantity blew it again. a, i does make people smarter. a, i just makes people get, be stupid, auto, you know, with, with, with an automated stupidity. it's an automated stupidity. so now zillow is,

once again, you know, getting into a situation. we've seen dozens of times where they thought they could beat the market, the market stop pounding them some a say this could be another subprime crisis. they've got to unload 7000 properties . the company is going on, you know, is, is in dire straits. but once again, it to your point, you know, relying on a i or our outsourcing to robots and computers. it just, it transfers because are designed by humans. it just transfers human stupidity to a machine. you know, machines can be equally stupid. it's also a system and a network and reflects all of nature around us. we are but a fractal of everything around us. so observing the algorithm is observing human behavior and observing what the price should be. but we're all also motivated to sell our house. and we see what the price is going to be. so we, we change our out, we change, we change the outcome of the alpha right us. so zillow was a, i was telling zillow that they should buy

a house cuz the price is going up. so they bought the house and the price went up and then the a, i said, well the price just want to buy another house. yeah. so they're, they're smoking, their own belly button lint in this virtual circle of self reinforcing their idiocy . and al collapsed. exactly like subprime, just like long term capital management, just like a socket question. i've been a, some the bank rush of 1993 and it's all happening. a i g, the 2000 right bear stearns, lehman brothers. it's all hubris. it's all the same exact thing. over and over again, chuck prince citibank said, as long as the music plays, we're going to keep dancing. then the music stopped and it was a huge crash. the music all was stop. these are just, it is armed with computers to magnify their idiocy. right? and wealth richter said about this story, by the way, that it was wall street that was driving this from the very 1st day. the very 1st house. they tried to flip in this program on zillow. they lost money and wall street. however, i didn't care that they were losing money, they wanted volume, so they encourage the company to keep buying more because they were willing to lend

them. or if they bought more, right? because the currency, the underlying dollars, the fear money, there wasn't providing a signal to tell you to stop being an idiot. keep doing in india because are going to keep pumping out morphia money. and now we're at the verge of global financial collapse, park to after the 2008 globs. all right, and we're going to take little break and only come back much more coming your way. ah ah ah

oh, driven by dreamer shaped baston cursed out of those with airs, sinks we dare to ask ah, welcome back to the kaiser report, i'm ash kaiser time now to return to our conversation with marshall r bock. he's

a market analyst over there at the levy institutes for research. marcia, welcome back. thanks. read me back again. it's always great to see it all righty. so stacy herbert came up with an interesting idea the other day talking about the current economic conditions in the west and elsewhere. it's kind of like a live experiment of m m j, monetary monitor, money theory, and one month. yeah, yeah. and, and so we're seeing how will play out and it doesn't look like it plays out well. so is that a fair statement to make and what are your thoughts on that? well, there are 2 aspects to modern monetary theory and empty. there is a description of how the monitoring and financial i'm fiscal it's operations of government actually work. there's also a normative side to it. and they have the image tiers have quite rightly broaden the scope for discussing what can be done in terms of physical capacity.

because they pointed out that a lot of the so called financial constraints are no longer there. so now that we're no longer operating under a classic old system that you know that you only have to get currencies. and if you have the capacity to create currency, if you considerably more latitude in terms of fiscal policy, the issue becomes however, that when you have that power, who are the type of people that are, are deploying the believers of fiscal and monetary policy. so the risk is that if you don't have any kind of political constraint built into the system, then a lot of bad in happen as well. that's not the fault of m and t per se. that's just i'm, i would say a flaw in human character, but you know, if you have a guy like donald trump running to government and he just does uses all that new found physical capacity to bail out, is cronies and all the rest of it. and that's not going to lead to a particularly good outcome. and that's the risk we have right now. you know,

al salvador, recently, after thinking about this problem, decided to outsource their entire central banking function to pick coin and lead pick coin be there legal, tender. as are, is all things are really making a positive change in el salvador in the whole regions, looking them adopting a big coin standard it's, it's similar to a gold standard but a lot better. and it gets to your point that without constraints, it's virtually impossible to come up with a system that is not open to the availability of humans and humans interacting with each other in ways that so far we've never seen it ever work over over time at scale never so yeah, what it is, is bill kelly, the president of el salvador on to something here? well, he certainly right in the, in the sense that he says there he has for, for a fee, a currency system to work. you have to have unimpeachable. there has to be a degree of political sent in the population that your institutions work,

their fair, and that there are functioning properly. if an element of them is function starts creeping. for example, if you don't believe any more that the governor is going to be collecting taxes fairly or to be abused in the system, then it undermines the value of that. it currency is, for example, if you don't, if people, if government can force their own io use and then force taxes. and you could get a very dangerous situation economically and politically. so the president of el salvador has taken the view that i'm going to be politicize this through the introduction of a crypto currency. and you know, it's an interesting experience. you have, this actually works. i mean, let's see it through a full economic cycle. i have some issues with currency but which we've discussed before, but i will say that the onus is now going to be on people like us. right. well said ok, so let's talk about those folks that are going to dallas every year. they've been

pushing for this notion of a quote, great reset. they seem to know what dr. michael watson has been suggested for many years. a debt that can't be repaid won't be repaid. so what is the great reset? is this code for a big jubilee? that's what you would think of. clearly they want to get ahead of this because either way they're going to get screwed. i mean that the people that go to dab us, they most of the are in the credit or class. so of a form of a debt jubilee or some sort of debt, right? it means that they are going to take a hit. the question is, do they take the hit in an orderly way because the government basically says we're going to have a debt you believe we're going to have you're going to pick or take care cars where you get like $0.50 on the dollar or does it come through in ation, which erodes the value of the they the asset they actually have. so i'm not sure

that they're actually prepared to go yet towards a debt you believe that they're trying to get out in front of the issue. so they can state got as much of their wealth as possible, but at the same time because of a degree of social stability so that people don't come up with pitchforks. right, so to put us in contact with part one of this interview, you think that the lease will hit the hyper with the inflation button always because that's the easiest way to inflate away the debt. and they're not willing to go through the political pain of a debt forgiveness. let me ask you this. so you're up there in canada. and so comment on the u. s. elite media elite. it would be like the, the top bill for us, you know, and the, the foreign looking in on the american country here. they seem to have lost their mind, the american media late. their idea is they want half the population imprisoned or worse. does not bode well for the economic future in terms of having the ability to

even deal with these many crises. marshall. well, the problem is that, you know, there are heterodox use such as your cell. but for the most part, media is high, heavily concentrated it by the corporate ownership, which is controlled by those very same elite that control the political politics in this country and increasingly control the political discourse. and you're seeing this through a heavy concentration social media and increasingly the people that run the social media platforms, whether it be google, facebook, twitter, or judge jury and executioner. so they tell us what we can and can on here. they determine what's responsible, what's not responsible. so that takes you further down the road to liberalism and you combine that with a lot of the so called them know, woke culture, which i think is a convenient way to escape discussions of the real structural problems that we're

facing. you know, it seems ok if you just take it in front of your bank for like jamie diamond it does. that's ok. but it doesn't really deal with the underlying issue which day prior to those approaches in the 1st place. right. ok. fair enough. now here's a question i'm going to read verbatim because it's a very precise question. the rise of china, the u. s. only states that china is an economic competitive threat and that in order to stop it getting further ahead of us, our allies should stop trading with them. how does this through city is trap? that is to say, the rise of china as a global empire versus america has, is play out. marshal, well, we're already in the cold war 2 point. oh, that's clear. and, and in some ways, the problem is that the soviet union was never really a significant economic competitor, even though they had a significant degree of nuclear weapons. china is unusual because in terms of

economic development, it's, it's, it's improving very rapidly in some areas. it's actually a head of the un, certainly in areas like a i, for example, drone technology. there, there are right up there right now. so yeah, it, the question is therefore, how do you handle this with my own feeling has been that you know, you, if you continue to offshore a substantial part of your manufacturing capacity to countries that may not have the same kind of economic and political interest is you then you're asking, you know, you're effectively as, let's say you're, you're, you're giving yourself a room with which to hang yourself. and people talk about, for example, the efficiency of, of re domiciled in domestic supply chain. so that with me, we should be producing more. they are being, you know, it's, it's inefficient to produce all the semiconductors at home because it can be done in taiwan. but if i wasn't a, to buy china, they're going, you know,

50 percent plus of the, of the memory chip capacity. and that throws the u. s. chosen global economy into mass recession. so, economists like to talk about the virtues of free trade. they don't seem to talk about the economic efficiency that come from war. i think you diminish the chance of having complex, when you actually build in a degree of domestic resiliency into your economy, which also gives you a lot more. hi. hi, pay. how the paid high school, how the skill jobs, which you, which need to be brought back home. that's the way i would rather see this country go to the us and canada by extension. as opposed to seeing as some heightening confrontation and increasing military exercises. and that part of the building and bring us an extra bit towards a comp where nobody will win. right? i think the rope quote it was karl marx, not letting you know what can we can go through the library and check on that and memorize. yeah. nevertheless, you know, war is a hugely profitable business, you know,

half of the american tax dollars goes to the pentagon. this is true around the world. it's a hugely profitable business. so the winning ourselves off war would kill the economy instantly. and, and so i guess another quantify what, what, what would it, capitulation if we were saying we have to degrade chinese economic capacity in order to compete for them. i mean, that's effectively an admission of failure. you're saying we're not going to compete with them or try to be better than they are at producing various things. we're going to try to degrade their capacity to enrich themselves and to grow economically. because that's the only way we can beat them that's, that's effectively what the wide mid ministration is saying right now. i mean, gina remote and the commer secretary said that about a couple of months ago, she said, you know, we've got actually, we can't trade with them because we have to degrade their economic capacity. otherwise they're, they're, they're going to beat us. yeah, it's the tonya harding approach. yeah, exactly. i've used that analogy. that's exactly what it is. lets me cap them. yeah . and, and that's the way we're going to beat them. yeah, i, when i read that i was kind of shocked because the american like even whether show

or not, they like to think of themselves as you know, the frontier people out there fighting for the right to compete and b. yeah, this seems like a complete repudiation. everything that america it thinks itself as. and it was quite shocking to hear that. and it's completely wrong because it hurt everybody, but mostly it hurts the united states. you know, you met you have trouble a little while ago. you know, a lot of the reason why trump is hated in the united states is from the blue check, blue, blue democratic hillary clinton crowd because you got rid of the salt cap on their taxes. they can't right off their taxes against their real estate and particularly hit media elite in new york. and now i'm looking to reverse that. it just goes to the one percent or the top 110th of one percent is purely pure example of cronyism. we have about 10 seconds. am i in the right track there?

yeah, yeah, you got the democrats like talk a good game. but at the end of the day, they like the republicans, are slaves, and i don't a class and that's always going to drive their actions. first and foremost, all right, marshal, are back long time frustrated. toronto maple leafs fan, thank you for all right. i was going to do it for this visual the kaiser report with may max kaiser is days here. we're going to think, i guess marshall our back of the leave, the institute until next time bio ah, ah ah, with a with

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