A murmur ation like starlings in the sky they congregate and then they disperse and people congregate around this room aeration of a stock called tesla and now theyre dispersing and theres no fundamental value to come but be that would suggest its worth more than you know 80 percent below its current price or market cap and to show you how easy it is to create a new meaning to take the place of the tesla mame nickel nicola. They just did a deal ford and their stock went up by 50 percent based on their mean of electric cars so. You know i mean i dont know what to tell you. This was predictable if all value derives from human consciousness and human consciousness is now so you know attention Deficit Disorder sort of television shortage 10. Span jumping from idea to idea multitasking and multiprocessor is hundreds of browsers open yes im talking about myself and you know your Attention Span only has a few moment your consciousness of any single me more idea is very limited for a few moments sometimes 3 seconds so this is subject to that so day fortnight i was huge on social media for a few weeks and now hes gone hes over peak does that mean as. Well here he was like the day of kramer for the game or the jim cramer you know with those green or and you know i mean i mean this is jim cramer had a plastic hammer as well during his in told us you know. Jon stewart who was big on cable kids he was a comedian who was on t. V. For a while he ripped james cramer apart in an interview and exposed him as a because he admits he likes to manipulate prices james kramer any has a tape of him saying this and jon stewart replated for him and he felt quite embarrassed but so this is just a repeat of that scene and so who will be the new dave portlands somebody is in the wings will be the new dave portnoy i might add in response to his 3 f on this one tesla announces 5000000000. 00 at the market stock sale so certainly iran must did a good job as the c. E. O. Dumping on chumps on robin hood out following day fortnight so they dont fight there and the stock collapse plus the market composition i believe triggered vesting schedule all for him thats worth hundreds of billions of dollars alternately. Perhaps so hes and the lot of innuendo and allegations of manipulation in the Options Market in terms of the stock price so you know youre dealing with some pretty sophisticated folks out there particularly the options traders the about theyve lost billions of dollars theyre trying to discourage people from doing that but they did it anyway. Yeah we covered the options mark in the last episode and they apparently did have some play in the whole tesla thing and it could have been solved bank it could have been all these robin hood traders because Retail Investors were the largest options traders in the world but you know back in the real economy one of the smart guys in the room always has allegedly been dr copper so you know were going to look at this weird copper story out of china and theres a few explanations for it possibly wow check out chinas copper been over 2000000 tons imported change into august never seen the scale of by before and you can see its way off the chart this is going back well past 2001 and this chart and there copper consumption has been climbing relentlessly over the past 20 years. There was a huge gap in january and february during the Coronavirus Crisis where theres no imports at all of copper so it could just be making up for that mark malloch over there and comments and he he says that this is basically them shorting the dollar it could be them getting ready for inflation and many of the comments were of course saying suggesting that this could be them preparing for war as well but copper is a strategic metal and all those 3 things could be implied and so to ignore this would be at your peril because this is an important. Feature and they say that the underlying implications for inflation we see that across the board for assets are moving in price and with the exception of oil but that is a very political politicized the potential for set up for a conflict is real because you know nobody outlawed conflict and thats been going on for millions of years the men tend to get in the conflicts and periods of peace are somewhat rare and the i. D. F. Shorting the dollar by hoarding copper is also very real because the copper or the dollar theres where period of dollars ations so if thats the case then youve got to load up on some of these things now and so that should be a very important warning signal terms of the arguments for inflation of course the supply chain those weve known for the past few months 67 months of this pandemic have been knocked offline so that is causing inflation in china and food prices and you know that thats one of the most important inflations to look at this is a headline in july chinese food prices rose by 13 percent year over year amidst trade wars with the u. S. Strongly and swine flu beijing is worried about Food Security she orders food saving drive School Principal shame pupils by demonstrative li consuming food leftovers and this is a chinese teachers finish. Leftovers to heed shes a food waste call it kind of feels like it should be a good analogy for whats going on in the stock markets and dave portnoy and his followers and the pleading for them to like somebody has to eat these losses right this is the fed policy jim cramer you know one day a day fortnight i will go to jim cramer and not not to jim cramer but to jay powerful plead with a pal to eat his unused lunch on eating lunch right now hes still in the old school of like capitalism you appeal to the c. E. O. s like do something make your stock price go up hes not realize that that. Is not where the power lies as with the the fed and youve got to have the fed start eating your own and bags of stocks right so youve got it just get to see that woman eating that food the principle we have to get a pal to eat Dave Courtneys bag of tesla shares yeah exactly the fortys on the learning curve you know he hasnt reached the the the head of the state get in terms of the fed he will figure that out but you never are even a year ago 2 enormous problems in the world war over tourism in all major cities and raging obesity everywhere in the world so what Mother Nature do she gave us this cold and virus and theres not a tourism problem anymore in these major cities as a matter of fact americas those in 3000000000. 00 a week in lost tourist dollars and the looks like based on this photo the obesity problem is going to be addressed as well yeah ok but theres a supply issue thats going to continue into this the 2nd you know weve if theres a 2nd wave of this pandemic we have new fiscal policies coming out new fiscal stimulus so who knows how many more chileans are going to be added to our budget deficit which is going to cause more inflation we know that the likes of day fortnight are going to send his army of robin hood apparatus to jay powell and to manage. Because as we have discovered that money printing cant fix supply chains exactly right and so the food is is beholden to the supply chain to a large degree and so no matter how much they print those twinkies might not get into the lunch boxes of folks and therefore they may have a cure for obesity you know im just looking at history and what happened in the Great Depression and if this is like another Great Depression even though the fed thinks they can print to the way you know we saw the same thing with supply chains and disorder in the food market and prices back in the 1930 s. During the Great Depression we saw people leave berlin and germany for example and go attack farmers because they blamed them for the hyperinflation of food prices that it was the farmers fault here is the same situation but what im saying is at the end of the day portnoys going to appeal to jay powell to bail out his his used lunch jay powell will do it because he has to because of the publics perception so hes got to maintain perception for the bag holders that there will be a fed put the fed will buy their bags down theyll do that so the way to do it is youve got to classify tesla as a strategically Important Institution for the American Economy thats like all the banks got under that category yes its lost a good bench a pile the tesla is a strategically Important Financial Institution then jay powell will be buying tussle stock and bailout day for me but doesnt care hes already bailed out hes already sold all his shares hes got billions and billions of dollars hes got tens of billions of dollars he may have access to the media and he said go on joe rogan you need to go on day 40 show so therefore he would have to classify tesla as a strategic underlying a valuable asset to get the bail out for dave portnoy and to help his being remember its all about me management well dave portnoy is the jim cramer of this era perhaps we dont know it like. Hes buying also hes been pumping false sorts of stocks and he stocks also some random names so we dont know what what sort of industries he could possibly push to be Strategic Industries and get a bailout from the fed but i think the bailouts are coming i think were going to see the equivalent of this this is my last point here with this mean and this analogy that were going to have these principles eating your used lunch and order to thats thats what the fiscal stimulus is thats what the fed quantitative easing is its just as absurd as this and desperate theres a sense that theres no real plan theyve even though its a planned economy like they want to have a planned economy and a planned Financial System a plan to markets that are always going up but they dont really have a plan for when that plan goes wrong remember never confuse brains with a bull market. All right were going to take a break and when we come back much more common and i think your way. Elder forward to talking to you all. That technology should work for people. I robot must obey the orders given to a human beings except where such orders would conflict with the 1st law your identification we should be very careful about Artificial Intelligence and the point all of you seem to crave trust arguments here. Late on very chummy with Artificial Intelligence where something that even. The robot must protect its own existence is existing. Gumbel used as a war of the most least multiple leader the most amazing issued in the. Center but its almost the guy who. Was almost as a name for a list of those almost moved closer and. Listen this war was the real story is still the sheep dog those of you saw. The pointless movies used to move the book with their skulls discovered that those that would use up this is a 1000000000 years removed by the up in the media of course free. The world is driven by dreamers shaped by frank person. Who dares thinks. We dare to ask. Plug them back to the kaiser report imax guys are time now to go to david the want of a bit wiser and best friends david welcome hello max its a pleasure to be here big fan of the show well big fan of yours me follow you on various social media got some great things youre writing about you write that metallic money did not survive the age of globalization and nation states because it did not scale well so lab rate on the sets of scale ability how does that relate if at all to what were saying at the moment in the global fear out currency grid davids thats an awesome question and a pretty broad topic ill try to get this custis in brief but i think its always one thing i always like to think about why the Gold Standard failed and actually how the Gold Standard say ok because i think sometimes we like to think that after 97 we 71 with 11 and c s currency world and that before that it was just the Gold Standard but i taste at the realities that were a number of different Gold Standards that were implemented over the years and some are just as the add as currency but usually when those sound money and it was the ast saw the Gold Standard usually refer to this state called the classical Gold Standard which was basically oration a dead end mids lee 1800. 00 and thats basically lasted until world war one after that it has been only downhill for gold we went to a Gold Exchange standard it at least in my view 1971 was just a natural consequence. Of that whole process but i take the point i was trying to make. That tax is that gold has the this amazing monetary corrector a stakes that we are all aware os whats regards to fungibility divisibility and scarcity but one thing that gold severely lacks the ability to transfer and i believe that had this started to become an issue over time especially as commerce the came more and more globalized so then we started to see people he said ill say exchanging. Gold bullion they started to use gold receipts and from then on. The shia takeover off the system was was a lot easier to do so i think that was a very very short and reason why the Gold Standard failed and this is exactly where i think one of the points 10 x. Prove mints are right we all know that basic point is extremely easy to transfer if you can transfer it over to enter nat without introducing any 3rd party risk in order for us to do that we can with node we have to introduce a lot Else Congress party rest that over time leads to centralisation off the Monetary Base so you have a lot of gold stored in and say no place which and thats why it doesnt have to be best way and i believe this is why not the big big big losses that the white house over go simply put gold is really having an as a result that you have to store it in places and that tends towards centralization is what you just said and when you have a big store of gold centralised then you need people to protect that and ive got a military on hand to protect her golden now in the military. Not only have you got a family currency thats probably a fraction of the gold circulating and that causes problems when ive got a bunch of soldiers with guns hanging around and the days off you know theyre out there are doing stuff that they shouldnt do and anyway you get to pick coin when its essentially solve this problem you save got a 10 x. Advantage over a gold to 10 x. Advantage thats a big advantage david tell us more well i think i was there for a basically 2 it is at least an order of magnitude better rate i do think sad bitter and dont get me wrong i love go actually i say go does great i just they found big winners better. And in a number off way and in some ways that point as mentally better than those but i do think that on this transports ability requirements are on the stressed or ability aspect i do think that were talking about orders of magnitude off you prove meant as as you just said how you can transfer between extremely easily while i go there is the smoky it has all these problems that you have mentioned i take away when we look at history the goal didnt die suddenly rake goes the gold Monetary Base is starting to become more and more concentrated over time like from gold coins to gold and then to go bars and gold bars soared in Central Banks this whole process off monetary centralisation is walk makes gold relatively fragile to a takeover orts to be caught by governments in the future and i think basically has see an order of magnitude at least and benefits on that side while the last terrorist acts on home eating former bank of england had mark carney. One u. S. Dollar no longer fit to function as a global unit of account do you agree and are we about to see a Bretton Woods 2. 00 what does a post dollar monetary in france system look like david wow thats thats a big question i think my heel on that i not i thank to be maybe a bit simpler on that side i think for now i dont know whats going to happen i do think that the dollar will be the leading currency in the world for a long time but one thing is for sure in my view were shifting from a uni of polar to a low tipler currency system right so right now as it probably doesnt make a lot of sense and china advice and energy from russia they have to do this transaction on us dollars and ultimately settled as at the Federal Reserve off new york of course both parties are not interested in doing that so they have been doing their transactions and not their currencies and actually get they a large part of off that. Sort of transactions are or are not happening to us all hers and you know more so i definitely believe that there is this change from like having only the dollar to having most of hope lobel settlement naturally exclude one way when i my bet is is of course on but point over time but just simply the fact that we are starting to see nice competing platforms i thanks nat enough for people to start paying attention this is the sort of stuff that breaks very stout least relationships are usually tend to have in our mind strike i thought i believe these are big events that we were vertebrates were in for many many years if not decades so im not im not very. For what you and gain is done to be that things are changing on that strong safe and yeah we can all see that it is and will be major for sure i think that point is a great some tender i think gold is a good one tender saying were probably going to see a number of different alternatives that have the us dollar theres the chinese currency were going to have maybe some of the central bank theres i dont care and see so its going to be interesting to see how this will play out right now at this years virtual Jackson Hall Jay Powell fed chairman said he is quote willing to tolerate more inflation you know this is a statement that says her you know rife with where theres a lot of ways but what do you think its definitely a historic. Speech or a good and were actually a bit wiser right about that right now i think theres a number of things that we need to keep in mind 1st i think thats extremely dangerous i dont think that history will judge this decision as a wise one but but but the relationship between a few things so for example the relationship between the Federal Reserve Balance Sheet side and inflation to say it is a lot less transparent than it used to be i remember you guys mentioned this in a previous show but a lot of these when we say that the threat that prints money theyre actually preaching Bank Reserves that banks might or might not lend rake and that could or could not be inflationary from a Price Inflation perspective in the short run that there were some important differences in the on the operating framework that the Federal Reserve operates on after the Global Financial crisis so that this relationship is becoming weaker and weaker but having thats sad. I think does that mean that all those sad lonely marys and the micro konami wants does that mean that they have solved the Business Cycle that they are going to be able to tame the Business Cycle i think the answer is a clear no i and i. I. Im not very sure when were going to see the consequences these actions but im pretty sure that this is not the end well many oxleys. Many of these measures they have been taken in the past the difference right now is theyre mad right and these things never end well as we now see i think thats why having at least one flood and. That is outside this whole Financial System. Or best point or so for a combination of these assets today so making more and more sense right now i have to set something and i want to focus on it here because i think the audience probably their parents. Picked up and they would appreciate a deeper dive into this you said that they the central bank prints Bank Reserves and that the bank may or may not lend those reserves this is an interesting point its a subtle point and i think the audience might been. Helpful to dig into that a little bit david in the time we have remaining so i think so in this i want to say that the sad print money what they usually do as they kind of withdraw chakra bond themselves these accounts that banks have with the chatter reserves this is what we call the Bank Reserves or the fed funds. Was so wet so the sad can like for example by the. Treasury from a bank and in exchange they will credit these reserves for a back and these reserves the banks can use to do fractional reserve banking and land to the economy. One thing that has changed significantly this mike look like a technicality but i think its a very very important point is that. In the past the banks usually didnt have a lot of these access reserves or at the Federal Reserve basically because they didnt pay any interest they paid 0 interest one thing that has changed after the Global Financial crisis is that in order for the sads to be able to do a limited amount of t. Re they they they started being interests on these research so actually if we look at if we plotted chart how these accessories serves that are are is that the sad are looking like youre looming and and theyre growing a lot and thats basically one of the big reasons why this money is not slowing the economy and why were not seeing a lot of Price Inflation frank david perfect route of time but thanks so much for being on kaiser report. Thank you max thank stacie i was going to do it for this edition of kaiser report with me Max Kaiser Stacy arbor want to thank our guest David Lavonne of bit why if you want to get in touch with us do so until next time. So what weve got to do is identify the threats that we have its crazy. Let it be an arms race. And spearing dramatic to follow only. I dont see how that strategy will be very critical. To sit. In. Trade and investment to become magic spells to conjure economic development. Most people think about trade they think about goods and services being exchanged between countries and the in fact chapter of a trade agreement is about something very different but what when investment leads to toxic manufacturing that destroys secrets into the environment. That means local communities that are being poisoned jacked if they do anything that. Company feels its interrupting their profits they can be sued no multinationals of speaking on the whole nation Philip Morris is trying to use an i. D. S. Dia to stop tour of the way from implementing new tobacco regulations aimed at cutting domestic smoking rates a fringe company sued egypt because egypt resists minimum wage democratic choice over trump Corporate Law joining us as we try to fund for the 2. Yellow bus down to government activists regroup in paris for the 1st time since the meeting to a brutal scoundrel put police on hundreds of arrests a correspondent was that. Story to get a look up but not cloud all over syria gas as people are now trying to move away from the arts. Russia hughess ukraine and disregarding free speech after it ill stop will to remove all Russian Media content from the countrys op stole. On britain footpads to make gatherings
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