kaiser report, we've been talking about inflation now for several years. and that's all happening . stacey? right, max, it's fun and exciting times. we're still here down and el salvador. thankfully, because of course, we are escaping the parabolic nature, not only of inflation in the united states, but our numbers up in north carolina are shockingly, who's in terms of the number of coven cases. i want to say that inflation numbers of course, came in at 7 percent. that does not include things like used car prices which went up 37 percent. actual rent prices across us were up nearly 20 percent. but of course, those are not really reflected in the cpi numbers. house prices also went up that i, so we're seeing high inflation across the board. yeah. when you step out the, the fake aspects to the c p number, the actual inflation number is exactly what we said. months ago,

it's 15 percent. people's purchasing power is degrading. 15 percent wages might be 3 or 4 percent, but inflation is up now. 15 percent. so net met, people are losing really losing out. and it's a problem that is intractable because the central bank has a problem that they can rectify. they can't if they were going to raise rate stacey to rectify this problem, they would have done so already. the reason they're not doing so i was because they are simply can't raise right there is a cure for this. this is now the beginning of a hyper inflationary collapse of the money. i'm going to read over this next article. and you might actually think that that's kind of what the game plan is, because for me it only seems like this can possibly be done intentionally. and this is a headline from wolf street dot com. what worked or, and he says about the fed, about these inflation numbers. what he says is most reckless had ever real federal

funds rate. now the most negative ever even most junk bonds have negative reel eels and the fed is still fueling this madness. after a year, a brushing off inflation as temporary, while inflation spread deeper and further into the economy and got worse. month after month, the fed is finally talking about tightening, but so far is just talking about it. it's still repressing short term interest rates to near 0 percent with the effect of federal funds rate, which the fed targets with its interest rate policy as 0.08 percent. and the fed is still printing money hand over fist, though at a slightly slower rate than 2 months ago. right. and is it on purpose? well, of the richest in society of gone from being worth 20 or $30000000000.00 to being

or a $200.00 to $300000000000.00. so clearly there's a group of folks that are benefiting by this. i don't see why you just can't called fraud this. that's what it is. it's, it's a financial fraud. well, it could be intentionally, could be an unintentional, but nevertheless, what we always say, we have warned you about it. and now many other people, leaders of nations like el salvador journalists out there. what they're saying is as game over for fia, i'm going to show you some more data points from this article from wolf street dot com. so you too can come up to your own conclusion, whether you think this is all going to be fine or not. remember that the u. s. dollar is, of course, the world's reserve currency. a lot of trade happens in dollars. all the commodities are price in dollars is the global financial rails and settlement layer . so let's see, we're what wolfram, your points out about the data from the fed. so many are comparing it to 1982 because that was the last time we had inflation rates at 7 percent. so here is what he has to say about whether or not we are in a situation like 1982. meanwhile,

the broadest measure of inflation of consumer price index jumped by 7.04 percent the highest and worse since june. 1982 according to data released by the bureau of labor statistics today. but we cannot compared today to 1982 and june of 1982 inflation was coming down. now, inflation is spiking in june of 1982 the effect of federal funds rate, the e f f r was 14.2 percent. today it is 0.08 percent in june of 1982. the fed did not engage and quantitative easing. today, it is still massively buying assets. so just to put that into perspective what we have right now with the e, f, f r, that effect in federal funds rate is a negative 6.98 percent. yes, let me put this into perspective. so in 1982,

we had an economy that was left over from world war 2. that was the manufacturing economy and saving economy. american wasn't enjoying that post world war 2 boom and paul, volcker to fight inflation raise interest rates into the mid teens, and was effectively able to restore balance to the economy using the central bank tools that he had at his disposal. interest rate policy. starting in the early 19 eighties, we had reagan and deregulation, and alan greenspan, who decided to change the mandate of the 3rd from priced ability to bailing out wall street. so now we've had 40 years activist fed chairman, who's single purpose in life has been to enrich wall street speculators at the expense of everyone else. people who would have normally out for a 5 percent on a savings account that money has been stolen through 0. that's just rights and

given to speculators how much? $5000000.00 in america, 50, killing dollars globally. and now we're saying the world we reaped this horror. and now we're, we're reaping the whirlwind of this horror and structurally speaking, i wold make those point once again the duration risk on the underlying fundamental basis of the american economy. the 30 year treasury bomb is essentially been leveraged to such an extent that any uptake and rates whatsoever, even the half of one percentage point would immediately cause insolvency for every bank and insurance company in america and globally. therefore, there will be no res and rates. all talk of raising rates is a joke. it's, it's impossible, you cannot do it. we are entering into hyper inflationary collapse against all fear money, including the dollar. and you should prepare yourself, the faster source of the race. obviously from paul to it of jones is bitcoin. right . so a midst,

remember we noted that last year in 2021. we had 70 new all time highs in the stock market. that was not happening in the 1980s either. so when you look back over the past 4050 years, 6070 years, and the charter, i'm about to show you is like when the a lot a lot of these cycles. and we're in an extraordinary moment, never before has the, the effect of federal funds rate been so negative at a time when it's a boon tie, right. everybody's property portfolios are soaring, stock portfolios, soaring. everything is soaring and everybody feels rich. nobody needs to work because they are there. so boom times. so never in all this chart. when we look at this data has, has, like such extraordinary measures been introduced during this sort of time. i mean, the only thing you ever saw was during world war 2, when we were fully fighting a global land war against the nazis. but now what did they fighting? right?

so now we have the bizarre situation where the e, f, f, r is 0.08 percent, and the c p i. inflation is 7.04 percent making the inflation adjusted if half hour or real e f f r is a negative 6.96 percent the most negative real e f, f r in the data, going back to 1954. so here's what that looks like going all the way here. maxine talks about this because as 19 eighties that's paul volcker, there with it. when he raised rates up to near 20 percent. and that's that 40 year bond bull market, you see as the rates get ever more closer to negative and now they've plunged into a negative, right? it's called extend an pretend. so every time america's got into some financial difficulties, they've re capitalized the economy with long maturity bonds and pretended like some day tax receipts of go up to the point where we can start paying down this debt. well, that's never gonna happen because even if americans tax rain was

a 100 percent, the number of years it would take to pay down, america debt would be a more than $2.00 generations. so in last year, willing to commit ceremonial supper, her aunt, maybe that's why i mean, we had royce a bug on a couple years ago. and he said, these negative rights are telling us of div population a mean that ultimately that could be the solution. is that you've got to cut global population and have to take care of this depth problem. well, it's not a solution, it's always been a disaster when they do that sort of thing. but that might be their plan, of course, and it's a very bad solution. and all back fire on them, but i want to say in their solution right now has been further and further negative rates, repression. and on the final note here, the data, what they've said, the real interest rate on savings accounts. and cd is similarly negative in the negative 7 percent range. the real yield of short term treasury bills is similarly

negative in the 7 percent range. even the 10 year treasury yield now at 1.7 percent is negative $5.00 and real terms. even most junk bonds are traded with yields below the rate of inflation. the average double be rated real junk bond yield is a negative 3.3 percent. taking more risk, the average be rated, real yield is neg, have 2 percent supposed to have long memories about the film market? remember back in the 7 days we had a film called the poseidon adventure. and shelley winters was stuck in the cruise ship that had flipped over, and they thought that they were going toward the exit, but they were actually going deeper into the problem. that's it. that's beside adventure. economy in america, all policy makers tell you they're pursuing policies to help the economy. they're actually doubling down on the exact same policies that cause the capsizing of the global economy due to too much debt. and it's not going to stop folks prepare

yourself. it's not going to stop, it's statistically impossible, mathematically impossible for the interest rates to go up. they will only print us into oblivion. venezuela, the united states of america, iran joined the club. there is no escape. there is no exceptional country. there is no exceptionalism. there is no escape, right? is called game over for fear. and that's the point. that's why you gotta buy bitcoin because bitcoin fixes us. and in the next episode we're actually going to go into one of the largest investment banks of the world. fidelity wrote a report essentially about this and saying that the game theory now is to start stacking up coin. so we'll cover that as we covered again, the goal, global hash war, as i said 2 years ago, was upon us. we're going to take a break and when we come back much more coming year away with

so called enhanced interrogation techniques used by the u. s. officials were basically designed as techniques to break down the human mind. if you force a human being to stay in a certain position doesn't take very long to the pain involved to become absolutely excruciating, but nobody's going finger on you. you are doing it to yourself. and we started adopting those techniques when i was stationed in mosul. among them were stress positions, sleep deprivation. and using hypothermia is already beginning to be evidence that these old techniques are now being used on immigrants and children, whatever you do or more comes home. nobody has been held accountable for the

torture that happened in the past. and the moral authority, the made america war later sacrifice. but the shimmer of effective interrogation wanda makes no sense. you know, born is a tease. and you as a merge we don't have a therapy. we don't on the back seat. the whole world needs to take action to be ready. people are judgment, come in crisis with we can do better, we should be 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 ah ah, welcome back to the kaiser report, i max kaiser time now to churn, to oust mccloud oh, gold money dot com ouster welcome to 2022. my pleasure max. so i guess we should do the obligatory big picture out. look for 2022. of course we've got a lot of global money printing going on and some supply chain disruptions. one other things, are you looking at ouster? the principal thing to look at his interest rates this year,

interest rates will rise. why will arise, they will rise because of all the money printing, but typically that's happened over the last 20 months. since i think march last year, u. s. money supply m $2.00 is increased by roughly 40 percent. and if you take into account also the increase in reverse repose, which temporarily sucks in liquidity. you're looking at gross closer to 50 percent . that has yet to work its way through into prices in the u. s. and we've also seen the ca msn price is rising strongly, for example, w t, i all is up about 50 percent, 54 percent natural gas is up to, but 60 percent plus, i mean these are big rises, which are still got to work their way through right, well after any united states, we just had an inflation print on a, c, p, i have 7 percent. when you add property in to the max out of the say people's homes

. the number is actually 15 percent. now the last time in america, inflation was running. this high interest rates are already over 11 percent. no, they're currently under 2 percent. but in the fed is an acting that they haven't acted. they haven't taken an action over many years, even though the inflation is been a problem for many years. why would we think that suddenly the central banks are going to do their job? i mean, it seems like the path of least resistance would be there simply double down and print more ouster. i think the problem that came in from the fed and almost everybody actually in the investment community has, is they don't understand the role of interest rates. the role of interest rates is to compensate people for the loss of purchasing power, currency and the loss of possession of that currency called time preference. so if you look at it that way, the idea that you try and manipulate demand for money by pushing interest rates are

down sideways is complete nonsense. it doesn't actually have anything to do with concurring the quantity of money. the quantity of money is actually controlled by monetary policy, and this is really on the back of government spending in excess of what they receive in taxes is financing the deficits and facets the source. and the problem on top of that, of course, central banks who decided to stimulate economies by pumps of easing. so, you know, i mean it's the whole thing is really a mess. and if you don't understand the role of interest rates, how can you actually run an interest rate policy? and that i think is what we're going to discover in 2022. yeah, wow. fair by we've got some other problems here. and united states, for example, a lot of the politicians are owners of stocks and they are very friendly with

j pal or with the federal reserve bank. and they've been, you know, we have one politician, nancy pelosi, who's worth over a $100000000.00 trading on, you know, inside information. let's call what it is. they have an incredible influence on interest rate policy. and when you have a club talk are sienna and corruption, this deep as we do in the united states. and there's no pushback. the current administration is the least popular ever in my life time of over 60 years. no one's been this on popular and 60 years in america. so obviously you have corruption, so i don't know interest rates are really change corruption. ouster. i don't think there's going to be a raise and interest rates because it won't take away the punch ball. there's too many people getting fat and they're corrupt ways in america. it's as simple as bad . allister, yeah, i agree with you totally. and it's not just america. i mean i put out a piece on the juris and today and the c b. i mean, when i looked into the figures, i was actually staggered to find that the banks,

the pension funds in the insurance companies, all not paying these government deficits. it is the e, c, b in its entirety. so the e, c, b has actually gone for rudolph, have his time. what they're doing is they're transferring well from the fiscally prudent to the spendthrift. and yeah, how long is this gonna last? i mean it to last until the whole thing falls over on the thing that will make it falling over, or the thing will make it fall over is rising interest rates. i mean, inevitably, because rising interest rates will not financial asset values and not any will it not financial asset values, but it will not the collateral of banks have against loans and you know, one way the other, you know, you're going to find the bank credit starts contracting very, very seriously. and you got a crisis on your hands and i think this is the point which a lot of people missed. they think that will be a crisis when they talk about, you know, there's going to be a reset. the rest of it. they obviously understand there's a problem,

but there's not going to be a reset in that sense. what's gonna happen is there's a crisis in this time. i don't think that the authorities will be able to handle it . because the only thing the only response they know is to just print money, you know, just just right open tracks to keep banks guy. it's not going to work this time. this is very serious. it will destroy the occurrences in my view. and if you look at the situation with the euro, it is but technically disastrous, right? well, imagine a c k there. i'm reminded the last year, i guess there was one of the richest men in the world who owns alvi. i'm h, a huge luxury brand, bought america's tiffany jewelers and he got the money from the bank to charge them nothing for it. so again, it's just this incredible corruption that we're fighting and not economics, but there's 2 ways interest rates can go up now, or they can go up as a policy decision or the bond market can collapse and you have higher rates that way. it seems that the more likely scenario is that the bond market simply

collapses due to over printing. and that's how we get higher interest rate. i'll start. yeah, i think you're right basically if you, if you go back to the seventy's and i remember that vividly because i was a stock broker through that, the whole of that period. and basically what is that the market begin to lead the central banks by the nose and the central banks got no option whatsoever. there was a difference in those days because in those days the central banks went as independent as they all know, not that dependencies in someone's imagination. but you know, the bank of england, for example, took his instructions from the u. k. treasury ministry, and it was the politicians are completely clueless and service the treasury because there was they were pains to a man. remember the canes actually worked for the treasury. so certainly before the, the, the 2nd world war and a bit off the 2nd world war. so they were all sort of into the sort of keynesian stuff and consequently they,

they just didn't understand markets and it was market basically the whole thing done. and we had 3 stocks which had 15 percent coupons. there was a 1515 percent, a 15 and quarter percent, an a 15 and a half percent treasury. just to mention, if the fed had to introduced us treasury's with coupons even half that. what that would do to finance is in the government. finance is what it would do to financial asset values in america. i mean, this is actually what we faced, which is why i say the thing that's going to master in 2022 is interest rates. all right, you mentioned the bank of england there, and of course that's the grandaddy of all central banks. i think they were chartered fact and 16941696 if i'm not mistaken. and interest rates in the u. k. a 300 year low. recently, but i guess they're, they're starting to take higher. what can you tell us about what's happening over at the bank of england? are they going with the crowd of the globally,

are they making any kind of a stand against that? i mean, you're right there. what's, what's coming out of their office? i think the 2 things to consider. i mean i listened very closely to what andrew bailey has been saying and is clear to me. he has no clue economics, i'm sorry to say, but that is the situation. moving can no road king how to fall back. right. you can always. but bailey, basically, i think, is being put in place is a safe pair of hands and by safe as we made some that someone was part of the amorphous blog, that is all civil service. so you know, that's not looking good from, from, from the top. we've got rising interest rates in sterling and we have got rising interest rates in a dollar. but what we don't have it with the euro. the n is we have got a problem and interest rates because they have negative interest rates. and if you're going across the river, come from negative to positive. this is a whole new ball game and we don't know what the effect of this is kind of bay. but

you can see that the authorities, both in the e, c, p and the bank of japan are actually terrified to the situation on the market or taking the view that they will not be able to go with the fed. however, when it comes to sterling self, evidently we've got the same sort of courtesy characteristics and military policy characteristics as, as america. so we will go with it and i think this is why sterling actually has been strong currency. i'm is rallied from 11322137138. i mean, this is quite a reasonable pickup in sterling before that it was ready going down down the pun. but this interest rates environment i think has changed things to the bank of england. and i can see the changes in that saying, well, now that sterling estallion has gone a bit better, perhaps we don't need to increase interest rates quite so much and all respite. so this debate i think is going to run a run. but i think at the end of the day,

both central banks, even though they can raise interest rates in theory, i think what they're going to do is i think they're going to be led by the nose, by the markets. as you pointed out earlier, max, i think these rates have got a long way to go, and there is absolutely no way anyone's talking of anything more than maybe one and a half 2 percent. i mean that is absolutely crazy. it's just not. all right, well we've had 2 generations that never seen and higher interest rate environment, so it's going to be a shock to them. let me ask you more globally speaking, you know, you and you do look at the global macro situation. what's going on with the supply chains? because i think china is going back in the lockdown center. there's a lot of problems there at some point, you know what you're to just developing for chips and very key components and all these parts. is that a situation that resolves quickly or is wants to kind of breaks, doesn't break for a protracted period of time? well, it's interesting because we've never really seen this before. i mean,

bearing in mind that the world now works on the japanese practice of just in time infantry, when nobody's really got and it stuck on the shelves in case something like this happens. so the problem i think is that manufacturers are tingling to have to sort of run to try and catch up with the situation where they just don't have chips or whatever it might be. components to put into cause. the problem with motor vehicles is that basically it's not manufacturing it's assembly, you got thousands and thousands of ups go into mexico and if we're a truck and if a supplier and for some reason you know, the stuff hasn't arrived like it's stuck in a ship somewhere then the whole thing hasn't shut down until it actually arrives. so it's not just chips, it's everything. and i think this is going to continue. i think for quite some time i'm from what i can understand. the coven regulations in china are still keeping ports either shots or working below capacity. you've got truck is you are shorter

to truckers because they've got cobit and all rest miss. and i look outside here and i know we've got to see about 3 miles away. and we're, we're, we've got a container ships at anchor. and when you look at your app, because you get an up to see all these things. i mean, where are they going? they going to the mediterranean, and they're anchoring here. i mean, obviously soon as you can't get through, so it's not. so i think the answer to your question back is that this is going to run and run and run. but i would also say something else, and that is the idea that these a supply chain issues are the only reason we have got price is rising. i think we've got to dismiss that because there's milton, as milton friedman said, in the seventy's he said, you know, inflation is everywhere. always the monetary, you know, a monetary problem effect. and i have to come there and carried over to a part to i'll sort of get more of a 2022 insights. thanks for being on kaiser report. my question and i was going to

do for this addition of kaiser report with may max kaiser and stay, sir, but thanks for i guess now mccloud of gold money dot com until next time bio ah yes. yes. i didn't know where you will, at least the typical there's only 9 but already a diversity students that away man slash a new modest appointment. let's see. yep. you've got the, there's dos padilla a pepsi. could i feel good? so the loss of money to somebody is quoted yahoo that he may come from no recalls. he really shows control studies program, use them now brochure, nebraska of course with level you're special,

but i'm the yeah. my i was thinking what the plan was to get on the she was, anyone shipping this i'm dealing with with his teacher was reason is balise, we'll coordinate. 6 ribbon by train, shape based, concur some of those with there's things we dare to ask

a top stories, and i think the sad world to 10 riches people double that. well, while millions if cove it a damning report from oxfam says the pandemic has increased inequality across the globe. the pandemic has really exposed inequality is over the last 2 years. it's been really exponential. so we call it a billionaire for land or so to come. who's the victim? a judge says that a 17 year old boy and sexually assaulted a girl and then transition to the female should not be sent to jail for fear of being victimized. critics say that the case is making a mockery of america's criminal justice system. and another u. k. politician appears to break cope with restrictions this time pictures of britain's opposition leader have emerged sharing in drinking with colleagues while the country boys in lockdown public patience.