what is inflation?her.ere at the bureau of labor statistics, they measure inflation, in a sense, with the consumer price index, totaling the costs of goods and services, then comparing them from month to month and year to year. inflation has affected everybody. some look back nostalgically to the three-cent postage stamp. when prices go up a little, we're not surprised. but when they get out of hand, we take notice, as we did in the late 1960s when prices began spiraling upward. what caused that spiral? as the country grew in the 1950s, no one was worried about inflation. then late in the decade, the economy cooled down. that became a factor in the 1960 elections. i'm not satisfied to have 50% of our steel mill capacity unused, or when the united states had last year the lowest rate of economic growth of any major industrialized society. president kennedy called for a new frontier, a new era of energy and spirit. the election may have been close, but there is general agreement that a supreme national effort

lou prices are going up energy prices are going up health care costs are going up inflation real inflation in the u.k. this is what they don't tell you real inflation if you look at stuff that people buy actually the shops is running at six to seven percent a year the government says it's running at zero maybe two percent a year that's another lie cameron lies about that the inflation is running at actually almost eight percent real inflation in this country right now people are getting hammered they're losing a dollar or they're losing a pound in their mortgage they're paying two or three pounds more for stuff at the shops they're being drained of their capital they're being a vis rated this is it's a poll grown and so finally what my thoughts here are that here you have this situation where you know bloomberg is suggesting they all quickly settle for like thirty billion dollars quickly with all the civil litigants that's obviously not going to happen but this is the reality of what george osborne and mark carney face and here they pretend that it's a big deal that the banking system need

food prices are going up energy prices are going up health care costs are going up inflation real inflation in the u.k. this is what they don't tell you real inflation if you look at stuff the people buy actually the shops is running at six to seven percent a year the government says it's running at zero maybe two percent a year that's another lie cameron lies about that the inflation is running it actually almost eight percent real inflation in this country right now people are getting hammered they're losing a dollar or they're losing a pound in their mortgage they're paying two or three pounds more for stuff at the shops they're being drained of their capital they're being a vis rated this is a poll grown and so finally what my thoughts here are that here you have this situation where you know bloomberg is suggesting they all quickly settle for like thirty billion dollars quickly with all the civil litigants that's obviously not going to happen but this is the reality of what george osborne and mark carney face and here they pretend that it's a big deal that the banking system needs a re

inflation to get themselves out of their debt problem but not so much inflation that investors are simply unwilling to hold the currency and all of a sudden start to dump it wholesale and then you lose control the currency vigilantes still have power even if the bond market vigilantes don't and if the currency village vigilantes really get going then countries like the u.k. that have horribly unbalanced economies that import far more than they export they are going to see their purchasing power of their currencies devalue so dramatically it will reach the man in the street instantaneously and just like in argentina you'll have might even have policy reactions such as blanket caps on food prices which will create shortages there are counterproductive policies as well we're deep into a mess here a crisis of confidence which is linked to the crisis in confidence in money itself and that has been caused by policymakers they're responsible for what is sadly an escalating level of uncertainty in the world that could under certain circumstances morph into something bordering or in fact actual hy

inflation to get themselves out of their debt problem but not so much inflation that investors are simply unwilling to hold the currency and all of a sudden start to dump it wholesale and then you lose control the currency vigilantes still have power even if the bond market vigilantes don't and if the currency village vigilantes really get going then countries like the u.k. that have horribly unbalanced economies that import far more than they export they are going to see their purchasing power of their currencies devalue so dramatically it will reach the man in the street instantaneously and just like in argentina you'll have might even have policy reactions such as blanket caps on food prices which will create shortages there are counterproductive policies as well we're deep into a mess here a crisis of confidence which is linked to the crisis in confidence in money itself and that has been caused by policymakers they're responsible for what is sadly an escalating level of uncertainty in the world that could under certain circumstances morph into something bordering or in fact actual hy

inflation to get themselves out of their debt problem but not so much inflation that investors are simply unwilling to hold the currency and all of a sudden start to dump it wholesale and then you lose control the currency vigilantes still have power even if the bond market vigilantes don't and if the currency village vigilantes really get going then countries like the u.k. that have horribly unbalanced economies that import far more than they export they are going to see their purchasing power of their currencies devalue so dramatically it will reach the man in the street instantaneously and just like in argentina you'll have might even have policy reactions such as blanket caps on food prices which will create shortages there are counterproductive policies as well we're deep into a mess here a crisis of confidence which is linked to the crisis in confidence in money itself and that has been caused by policymakers they're responsible for what is sadly an escalating level of uncertainty in the world that could under certain circumstances morph into something bordering or in fact actual hy

food prices are going up energy prices are going up health care costs are going up inflation real inflation in the u.k. this is what they don't tell you real inflation if you look at stuff the people buy actually the shops is running at six to seven percent a year the government says it's running at zero maybe two percent a year that's another lie cameron lies about that the inflation is running it actually almost eight percent real inflation in this country right now people are getting hammered they're losing a dollar or they're losing a pound in their mortgage they're paying two or three pounds more for stuff at the shops they're being drained of their capital they're being a vis rated this is a poll grown and so finally what my thoughts here are that here you have this situation where you know bloomberg is suggesting they all quickly settle for like thirty billion dollars quickly with all the civil litigants that's obviously not going to happen but this is the reality of what george osborne and mark carney face and here they pretend that it's a big deal that the banking system needs a re

food prices are going up energy prices are going up health care costs are going up inflation real inflation in the u.k. this is what they don't tell you real inflation if you look at stuff the people buy actually the shops is running at six to seven percent a year the government says it's running at zero maybe two percent a year that's another lie cameron lies about that the inflation is running it actually almost eight percent real inflation in this country right now people are getting hammered they're losing a dollar or they're losing a pound in their mortgage they're paying two or three pounds more for stuff at the shops they're being drained of their capital they're being a visceral did this it's a poll grown and so finally what my thoughts here are that here you have this situation where you know bloomberg is suggesting they all quickly settle for like thirty billion dollars quickly with all the civil litigants that's obviously not going to happen but this is the reality of what george osborne and mark carney face and here they pretend that it's a big deal that the banking system needs

inflation to get themselves out of their debt problem but not so much inflation that investors are simply unwilling to hold the currency and all of a sudden start to dump it wholesale and then you lose control the currency vigilantes still have power even if the bond market vigilantes don't and if the currency village vigilantes really get going then countries like the u.k. that have horribly unbalanced economies that import far more than they export they are going to see their purchasing power of their currencies devalue so dramatically it will reach the man in the street instantaneously and just like in argentina you'll have might even have policy reactions such as blanket caps on food prices which will create shortages there are counterproductive policies as well we're deep into a mess here a crisis of confidence which is linked to the crisis in confidence in money itself and that has been caused by policymakers they're responsible for what is sadly an escalating level of uncertainty in the world that could under certain circumstances morph into something bordering or in fact actual hy

real inflation in the u.k. this is what they don't tell you real inflation if you look at stuff the people buy actually the shops is running at six to seven percent a year the government says it's running at zero maybe two percent a year that's another lie down or lies about that the inflation is running it actually almost eight percent real inflation in this country right now people are getting hammered they're losing a dollar or they're losing a pound in their mortgage they're paying two or three pounds more for stuff at the shops they're being drained of their capital they're being a vis rated this is it's a poll grown and so finally what my thoughts here are that here you have this situation where you know bloomberg is suggesting they all quickly settle for like thirty billion dollars quickly with all the civil litigants that's obviously not going to happen but this is the reality of what george osborne and mark carney face and here they pretend that it's a big deal that the banking system needs a reset and

inflation to get themselves out of their debt problem but not so much inflation that investors are simply unwilling to hold the currency and all of a sudden start to dump it wholesale and then you lose control the currency vigilantes still have power even if the bond market vigilantes don't and if the currency village vigilantes really get going then countries like the u.k. that have horribly unbalanced economies that import far more than they export they are going to see their purchasing power of their currencies devalue so dramatically it will reach the man in the street instantaneously and just like in argentina you'll have might even have policy reactions such as blanket caps on food prices which will create shortages there are counterproductive policies as well we're deep into a mess here a crisis of confidence which is linked to the crisis in confidence in money itself and that has been caused by policymakers they're responsible for what is sadly an escalating level of uncertainty in the world that could under certain circumstances morph into something bordering or in fact actual hy

good arguments why inflation is understated there are also good arguments why inflation is. overstated for example quality improvements that are not adequate to captured in the price index and other reasons but if i had a large inflation is under control and whoever you talk to who independent experts very very knowledgeable people will come. will confirm that fact so we are not yet in in a financial bubble not know yet not yet not yet we have no hearing which we are not yet. we are not yet in that situation i am was it about it i am again one of us i am not saying that this is the best of all worlds it's possible that a year from now or two years from now we will be seeing the manifestations of inflation and of a financial bubble and then the central banks will be under a lot of pressure to tighten quickly and we could have a major problem on our hands but i want the central banks held actually maher is on he wanted to go to hong kong fair time i just say that's a it's wrong i mean the thing is generally i want a grievous add actually on most things inflation is a real prob

coming up but max and stacey discuss the debt inflation and all strain economy and the kaiser report. welcome to the kaiser report i'm max kaiser and i'm here to tell you that we are living in a post industrial cargo cult once a cargo cult you ask according to wikipedia a cargo cult is a religious practice that has appeared in many traditional pre-industrial tribal societies in the wake of interaction with technologically advanced cultures the cults focus on of chaining of the material wealth i.e. the cargo of the advanced culture through magic and religious rituals and practices kind of like pressing control pre print print print today we are all post industrial cargo in a cult called keynesianism the ritual act of printing money itself we are told by our cult leaders like jim jones and his kool-aid i mean ben bernanke and his printing will lead to a future of material wealth and prosperity for all all on board the hale bopp comet maybe and it is banking transactions at an ever increasing rate which mimic a real booming economy it was real businesses are being built and growing that

because back in the services yeah the that was when you actually add inflation well the united states of debt addiction sixteen point seven trillion dollars that is our current national debt twelve point eight trillion dollars that is the amount households carry in mortgage and consumer debt we are now addicted to debt to lubricate the wheels of our financial system there is nothing wrong with debt per se but it is safe to say that too much debt relative to how much revenue is being produced is a sign of economic problems again you know back during world war two during these original cargo cults we had a lot of debt government debt but it was going into building goods and services and infrastructure and now it's just all we've got rid of all that the things that might lead to wealth production eventual instead we just have the debt and we think accumulating the debt will somehow make us well things i mean this is the idea of doing need more aggregate demand or do we need some good supply so the keynesians out there believe that it's all about aggregate demand because seventy percent o

seventy's yeah but that was when you actually add inflation well the united states of debt addiction sixteen point seven trillion dollars that is our current national debt twelve point eight trillion dollars that is the amount households carry a mortgage and consumer debt we are now addicted to debt to lubricate the wheels of our financial system there is nothing wrong with debt per se but it is safe to say that too much debt relative to how much revenue is being produced is a sign of economic problems again you know back during world war two during these original cargo cults we had a lot of debt government debt but it was going into building goods and services and infrastructure and now it's just we've got rid of all that the things that might lead to wealth production eventual instead we just have the debt and we think accumulating the debt will somehow make us wealthy i mean this is the idea of doing a more aggregate demand or do we need some good supply so the keynesians out there believe that it's all about aggregate demand because seventy percent of the economy is going sumptio

the real inflation airs now just around eight percent for people who are shopping in the high street for food and energy not the two point seven percent that the government it really is sleeve reports so now we go to the normal human individual the participants in the economy they are in a post industrial economy they forgot how to create wealth how to make a living so they're out. they're on the runway with their fake signals hoping that and this is the act of using credit cards right because they don't have jobs since one nine hundred seventy one jobs have plummeted real income and wealth have plummeted in the united states this is not the return of disco. you know this is this is a cargo cult symbolic messenger of degradation it was disco we could go for real genuine inflation because back in the seventy's yeah the that was when you actually add inflation well the united states of debt addiction sixteen point seven trillion dollars that is our current national debt twelve point eight trillion dollars that is the amount households carry a mortgage and consumer debt we are now addic

because back in the services yeah that was when you actually add inflation well the united states of debt addiction sixteen point seven trillion dollars that is our current national debt twelve point eight trillion dollars that is the amount households carry a mortgage and consumer debt we are now addicted to debt to lubricate the wheels of our financial system there is nothing wrong with debt per se but it is safe to say that too much debt relative to how much revenue is being produced is a sign of economic problems again you know back during world war two during these original cargo cults we had a lot of debt government debt but it was going into building goods and services and infrastructure and now it's just we've got rid of all that the things that might lead to wealth production eventual instead we just have the debt and we think accumulating the debt will somehow make us well things i mean this is the idea of doing a more aggregate demand or do we need some good supply so the keynesians out there believe that it's all about aggregate demand because seventy percent of the econo

we saw the same thing during roman times when they cooked the coins that's inflation well changing the basket the composition of the balls to see ok so how can you so you're saying a moment ago that the average person doesn't experience a higher inflation i know that they wouldn't let's say be experiencing education fees going up sort of ten fifteen percent year on year they're obviously experiencing it but they're not experiencing it to the degree the other people might be experiencing it but there will be a point there has to be a points. where i hope there's a point where they do stop and say what the hell are we doing what i think we're fighting if i may i think we're saying is becoming normalized it is becoming enormous so there's because they're becoming desensitized to this deflation a level twenty seconds ago currency wars lost on japan they've obviously debased and the china and korea are pissed off about it and they're actually getting it looks like they're in a war on a war footing china's japan you know these two they don't like each other so then japan is saying. we're tak

because back in the seventy's yeah but that was when you actually add inflation well the united states of debt addiction sixteen point seven trillion dollars that is our current national debt twelve point eight trillion dollars that is the amount households carry a mortgage and consumer debt we are now addicted to debt to lubricate the wheels of our financial system there is nothing wrong with debt per se but it is safe to say that too much debt relative to how much revenue is being produced is a sign of economic problems again you know back during world war two during these original cargo cults we had a lot of debt government debt but it was going into building goods and services and infrastructure and now it's just we've got rid of all that the things that might lead to wealth production eventual instead we just have the debt and we think accumulating the debt will somehow make us well things i mean this is the idea of doing a more aggregate demand or do we need some good supply so the keynesians out there believe that it's all about aggregate demand because seventy percent of the ec

we saw the same thing during roman times when they clipped your coins that's inflation well changing the basket the composition of the balls to suit ok so how can you so you're saying a moment ago that the average person doesn't experience a higher inflation i know that they wouldn't let's say be experiencing education fees going up sort of ten fifteen percent year on year they're obviously experiencing it but they're not experiencing it to the degree the other people might be experiencing it but there will be a point there has to be a points. where i hope as a point where they do stop and say what the hell are we doing i think if i say if i may i think we are saying is becoming normalized it is becoming the norm so this because they're becoming desensitized to this deflation a level twenty seconds ago currency wars will start to pan they've obviously debased and the china and korea are pissed off about it and they're actually getting it looks like they're in a war on a war footing china is japan you know these two they don't like each other so and japan is saying. we're taking our y

the benefits of inflation are going to the very top. that's a that's i'm saying the the trolls and their clients under the bridge are grabbing all the money is a rolls off the press and they're stuffing in their pockets and a stock getting into the real economy incomes are deteriorating in the u.k. there are more jobs being created the last twelve months but these are part time jobs these are minimum wage jobs and they they are not generating the taxable income sufficient to pay down a any of the deadmau5 debt is going up the deficit is increasing all the metrics of an economy are deteriorating and george osborne the slimeball is looking all smug and content that he's going to double down well actually forgot the most important part of that equation why the debt is rising people aren't they say there are more jobs being created but george osborne is including in that the free workers you know for this job back to work program they're forcing people to go back to work at powell land and various service sector jobs for free but they're co

the benefits of inflation are going to the very top. that's a that's i'm saying they have the trolls and their clients under the bridge are grabbing all the money is a rolls off the press and they're stuffing in their pockets and a stock getting into the real economy incomes are deteriorating in the u.k. there are more jobs being created the last twelve months but these are part time jobs these are minimum wage jobs and they they are not generating the taxable income sufficient to pay down the any of the debt modify the debt is going up the deficit is increasing all the metrics of an economy are deteriorating and george osborne the slimeball is looking all smug and content that he's going to double down well actually forgot the most important part of that equation why the debt is rising people aren't they say there are more jobs being created but george osborne is including in that the free workers you know for this job back to work program they're forcing people to go back to work at powell land and various service sector jobs for free

♪ inflate! inflate! inflate! inflate! (laughing) marcus, look!oing to like them even more than before. (crying) this is what we in the prankster business call a backfire. (crying) i know, i know. ♪ marcus, that was awesome. did you see how far i kicked that thing? yes! oh my gosh! hey, marcus. jess, you made it. hi paul, hi emily, the guys are on the way. oh...whoa! i know! the electric company wishes you a happy fourth of july. marcus, did you do that? yeah, with a little help from my friends. it's amazing, but how on earth... it's a long story. i think we have a couple of hours before the fireworks start. ok, so, i was walking through the park and i see a bunch of rebuses all over the place... can you help me? ♪ boom! prankster planet! ♪ ♪ kapow! prankster planet! ♪ ♪ the wordsuckeruppernator is sucking up words ♪ ♪ so it's jessica and marcus to the rescue! ♪ ♪ there are 13 buttons to shut it down ♪ ♪ but pushing them all is up to you! ♪ ♪ boom! prankster planet! ♪ ♪ kapow! prankster planet! ♪ meanwhile, in the city... well, well, well, if it i

good arguments why inflation is understated there are also good arguments why inflation is. overstated for example quality improvements are not adequate to captured in the price index and other reasons but if i had a large inflation is under control and whoever you talk to who independent experts very very knowledgeable people will come. will confirm that fact so we are not yet in in a financial bubble not know yet not yet not yet we're going to be hearing which we are not yet. we are not yet in that situation i am was it about that i am again one a celeb i am not saying that this is the best of all worlds it's possible that a year from now or two years from now we will be seeing the manifestations of inflation and of a financial bubble and then the central banks will be under a lot of pressure to tighten quickly and we could have a major problem on our hands but i would not essential bank here how it actually maher is johnny on its go to hong kong fair time i just say as i say it's wrong i mean the thing is generally i want a grievous expert on most things inflation is a re