Stocks, especially under price. So engine yell like everybody else. What people are expected to do with the participants in an economy are expected to do through fed speak through the fed manipulate in prices, is that theyre supposed to think that these are the animal spirits. The fed tries to incur, well responded. Actually, stocks are mostly being driven by global q. E. , quantitative easing, which really has one major purpose, which is to raise asset prices. Yeah, weve been talking about this for a while. David blanchflower is one of the central bankers who speaks openly and honestly about whats going on here. So who covers business a lot over there in the u. K. Doesnt want to recognize that stock prices are a function of money printing. In fact, how much our stock price is a function of money for, according to recent analysis, about 50 percent of the dow jones is attributable solely to money printing from earnings, which are in fact going down. But from stock buybacks and other tricks accounting tricks. So this idea that somehow theres going to be a glory days ahead based on economic growth, is fallacious of best, and flower calls it out the way it is. That is for sure, this is all the product of money printing. I mean, its amazing, like this is what we talk about. This is part of the problem that has been going on since 2008 since the 4th turning since the arrival of the new generation into the marketplace of jobs and the economy and they find out its a burnt out wreck of cantillon effect and over priced assets, right that all the young people, the 20 year olds, a 25 year olds having to enter the market with central bankers for the past 10 years, especially 12 years, especially have been pumping up asset prices. Well, that locks out the young generation. So were like, what good is that at the benefit of all the people who the boomers, especially who became of age, who came of age, got their 1st jobs, bought their 1st houses at the beginning of this cantillon effect at the beginning of this ponzi scheme. Since 1071, when the us went off the Gold Standard. So why youre trying to keep that pumped up instead of like, let it shift away from those who are elderly, to those who are young and starting out right with the world. Break this down a little bit, so if you are borrowing money from the bank to speculate in stocks, theyll lend you as much as you want trillions. In fact, if youre trying to borrow money from the bank to start a business, a family business, for example though, would build the klein, your loan. Now what the economists will tell us is that they need to keep pumping money because they need to increase the play ssion. Because for some reason, theres not enough demand for credit out there. What they dont tell you is that when people come to the bank to demand credit or borrow money to start a business or a restaurant, a Family Restaurant or a family business, the bank says no. And why does the banks say no . Because they lend all the mob possible lending capacity, they have to speculators who are expecting laving in stocks, bonds and commodities in an almost no risk situation, because if they get any kind of a loss, of course, the state then bails them out. Now what happens there is the case shaped recovery. Bankers continue to improve, have seen this during lockdown. Trillions of dollars have been made and everybody whos not getting the free money is of course, horribly suffering. So, and thats why we hear this all the time that theyre trying to have the have an inflation target that theyre trying to reach. That is constructed by the fact that they do not lend to the folks that could actually increase the productivity of the economy. They only lend to the speculators. Well, right. As dr. Michael hudson has told the show, thats what after he was an academic, learned how to be an economist. And i was hired at. I think it was citibank, or chase smith, chase bank and manhattan. And he said he went there thinking he was being a banker and lending to business and what he was surprised to learn at the end of the year. And he kept their balance of payments and their accounts. And you say we just lent 2 mortgages like were property, speculation, business and, but thats what they did. They dont teach you that and in business school. But speaking of speculation, this is a remarkable story because one thing weve, weve, weve been covering here on kaiser for years is that mad speculation and financialization of the oil market in the united states, whereby we pump oil and natural gas through fracking. And it has lost money, no matter how high or high the price of natural gas, no matter how price high the price of oil, it was always losing money. But Interest Rates kept on declining. More and more free money was being pumped into the economy, Pension Funds were having to chase yield wherever it was, and that was in these bonds in the fracking sector. Well, saudi arabia bizarrely has the Largest Oil Fields in the world. Kawar has been pumping for like 50 years. And, you know, over the last few say the last decade they have, theyre having to pump more more water in there to get more, more force, more and more oil out. But they have turned to financialization and got wrecked. I mean, this isnt saying the story. Saudi aramco is landmark. I. P. O. Is costing the kingdom billions, the initial Public Offering of saudi aramco that was heralded by Crown Prince Mohammed Bin Salman m. B. s as being a showcase floatation for raising massive new capital for the kingdom. And anchoring a major expansion of its International Equities markets presence has proven only to put iran co into a death spiral and highlighted a myriad of problems in saudi arabia to international investors. Now iran co is digging itself further into serious debt to bond issuance is simply to pay for the huge Dividend Payments promised by m. P. s. There were absolute you choir to persuade anyone to buy into the on the toxic i. P. O. At this rate. The debt taken on by around co and other saudi Bond Offerings to pay for the dividends will be far more than the amount of money raised in the i. P. O. Right . So as you point out, this is the financialization has its limits. The accounting tricks of stock buybacks in money printing have their limits in saudi arabia. We see a brilliant example of what happens when a country decides to go into financialization, instead of what say diversifying into actual productive economic activities. So what the oil price down as it has been saudi aramco society do know, we dont want to accept the lower yields from our oil revenue. Instead, were going to take this whole thing, public and parasols, a dividend, and that dividend will be better than the cheaply sourced revenues from our oil business. Because the oil business is not for vibing, that same level of income. And by the way, theyre already leveraged to begin with, they needed income to pay down that debt to begin with. So they do the i. P. O. What they find is that the different then is unsustainable. Saudi aramco, so to keep that cash flow going, theyre going into the wholesale debt market. So to solve the debt problem, they went into an i. P. O. Initial Public Offering, which has resulted in intensifying the debt problem. And this is the limits of financialization a similar to i. B. M. I. B. M. What back 100 30000000000. 00 of its own stock in the companies now worth like 110000000000. 00, right . So they bought themselves to death. They financed themselves to death. So saudi arabia has financed that some of into oblivion because they swallowed the financialization koolaid to the point now where the entire country is at risk of going under. Because these princes that run the place never put a pencil to a spreadsheet and figured out that you cannot deck yourself into growth. Well, in the fracking sector we have the red queen syndrome, whereby the oil wells deplete after a year or 2 here, their oil field is still go in 50 years later. But we have the bonsall prince said drum where he cant add up. He cant figure this out, that hes, theyre losing money on every barrel now because of financialization, and theyre having to massively cut back cap ex and oil. The oil sector is one of the hugest in terms of Capital Expenditure required to keep these things going. So theyre having to diversify, you know, get out of petrochemical business to cut back on their expenditure to pay these dividends, which is more than their profits theyre making quarterly at the moment. Exactly. Right. You know, thats just that the accounting tricks that work for decades stopped working just like burning, made off eventually, as he said, there is no innocent explanation when they was caught for his ponzi scheme. The Saudi Arabian economy is an oil based policies, game based on ponzi scheme, underlying currency and an underlying Global Central Bank led ponzi scheme. Definite, he managed to turn it into that like using financialization. Well, speaking of, dont go away. Well be back right after this. Is youll be via reflection of reality in a world transformed what will make you feel safe, high salacious community. Are you going the right way or are you being that direct . What is true . What is faith . In the world corrupted, you need to descend to join us in the depths of the shallowness. Always be polite, never engage with a negative, aided or confrontational. Dont get into any conversation or start answering questions. Just ask for an attorney to survive and tear of definitely dont want to be going to try to jump on cops. Youre more likely to walk free if youre rich and guilty, or if youre poor and youve got 2 eyes and 2 ears and one mouth. So you should be seen in here and a whole lot more than youre saying if you dont take that advice, easy going to dig yourself a hole. Were segregated by social class. People in poverty by 1st. If youre born into a poor family, ah, youre born into a minority family. If youre born into a family that only has a single parent that really constrains your life, chances people die on average 15 years younger than you born into generational poverty. Its a tough fight every day to meet your needs and the needs of your family join me every time. Im sure and ill be speaking to the world. Im sure ill see you then. So what weve got to do is identify the threats that we have. Its crazy. Let it be an arms race off and spearing dramatic development. The only posts really im going to resist. I dont see how that strategy will be successful, very critical. Time to sit down and talk. Welcome back to the kaiser report, imax keyser time. Now to continue our conversation with safety. Intimacy is the author of this instant classic debate. Quite standard. Read by billionaires around the world safety and welcome back. Thank you for having me. Max. How does it . How do you feel like when Michael Saylor over there, michael started, he says he read your book and then he bought 425000000 dollars of the big calling. It did he call you up and send you over a fruit basket or something . As a set me food basket, but you know, i dont eat fruits anyway. I only accept gifts in the form of reply. I regard as, a let us price solemnised over there. Hes the c. E. O. , hes the 2nd or 3rd richest man in mexico. He said, oh i read safety book, its why 10 percent of my liquid per portfolio is now in bitcoin. Has he sent you . Lets say, you know something from mexico . Not yet, not yet. He did only that, hed like to see if i go to mexico. Some keeping that in mind, but yeah, im obviously astounded to have to have so many people read my book. Ive honestly did not think this would be the case when i was writing this book. I meant i thought it would be something that would be popular in small circles of bitcoin. Twitter. I did not envision wall street titans and billionaires hitting me up on twitter and telling me, hey, that was a great book. But here we are friends. Interesting because in the book came out, academics in the intelligentsia around the world were quick to be critical of the book because it did not go down the orthodoxy that they were brought up on. It was, of course heterodoxy, and i would judge that impact by a book of how it actually affects society. And by that measure at this book is all frick and awesome, you know, world changing book. All right, so you got a new book out called the fear out standard, the debt slavery alternative to human civilization. I, i would have, i guess, is a companion book. You know that you go to, i gather, you have a complete way to get your mom and dad bitcoin during thanksgiving. If you are trespass, if youve got a black belt and bitcoin, ive ology by professor safety analysts. So lets talk about black rock. The largest asset manager in the world, they join j. P. Morgan, the biggest bank of the world. They say that because it is displacing goal. Do you think this is true . Is gold 5000 year run over, as peter schiff about to perform serve only all separate coup in the middle of his Trading Floor . Does because market caps own head truly and the dell he says, safe did. It looks like it. I mean, this is the kind of crazy talk that only people like you and me were repeating on twitter a few years ago. Now, all kinds of other, less creative people are eating it. It seems, i think, i think the, the case for becoming to continue to grow is very compelling today because when, as near its all time high, i was almost at its all time high. And the fact that it had such a massive crash and recovered. I think is, is enormous and having done it 3 times, its going to start attracting real attention. I think the silly position of the academics you mentioned to just dismiss it out of hand, is i think the perfect complement to just how completely utterly insignificant the vast majority of academics are today. All of these people are just writing it for each other and with absolutely no relation to how the world is looking in the real world, i think. Yeah, you know, gold is probably the new silver and if you know what i think about silver, i think silver is silver, has been with the monetized 450 years now. Its been crashing against gold 450 years and theres no way back from that because silvers main advantage was that it was used as a secondary scaling solution for gold at smaller levels. But then with the Gold Standard and then with the fiasco, all of that, there was no use for it. So now there are a few people actually use silver as money. And those who do witness the value of their silver generally lose value over time. And i think when we might be seeing something similar with gold, because bitcoin has a higher stock flow than gold and gold is becoming the new silver. Its a higher stock to a lower stock of low now. And i think, you know, the way things are going a bit continues to appreciate. Then gold effectively becomes cheaper in real terms, which makes it more economical to use it in industrial uses. And i know a lot of the gold bugs like to say, well, you know, we can make cufflinks out of our gold, as peter schiff says, or whatever. And they think that thats a good thing, but that is not a good thing. You dont want your money to have industrial uses in the ideal money has 0 industrial uses and is a purely monetary good. Because the more industrial uses you have, the less of a market, the less of a monitoring medium you are actually using. And the more industrial uses you have, the less the lower the stuff to flow racial because because a lot of that stuff starts getting used up in jewelry and in industry and effectively its like youve put it underground again, its no longer part of the stockpile because you know, if you want to get gold out of electronics, you know, the cost of mining that is probably higher than the price of the cost of mining it out of the ground. So the more gold goes into industry, the lower the goals stop the flow racial becomes and therefore it becomes more and more of an industrial metal. And you know, when i, when i wrote the big points down, it was much less confident in this happening. But i think the last 23 years, you know, we see it can continue to rise and gold continue to just essentially languish in this, you know, in this price range between 13 and 18 or 19 under whatever this continues for another 567 years, the gold will overtake bitcoin i think, let me ask you this censure professor and whatnot mises regression. There im in it and seems to think that, you know, you have to go backwards in time to a point where there was utility value and gold had utility value. And thats important. But it seems like its that goes against mangas thought about having purely subjective value and to your point, because because it doesnt really have any you tell any value other than the fact that its a Perfect Store about you. Its much more in keeping with the Austrian School as originally envisioned by the founder of the Austrian School. Yes or no, i dont entirely because i think it goes along with both. And i think people misinterpret, amazes theorem as, as saying that this is how i think the important thing to keep in mind that with mrs there was throwing, she was showing how the market could produce a money without government having to mandate. And that was really the key point, and so thats the, thats really the important point within that context. And so you could say that today, you know, bitcoin doesnt need to start off to bootstrap itself through the phase of going through being a market commodity 1st. In order to become money because we already have a money and so we can price bitcoin in money. But i think even, you know, you do, you dont have to go this far. I think theres a bit less a fear of still holds because bitcoin was not used as a medium of exchange in its 1st transaction. In the 1st ones actions because people were accumulating bitcoin and holding it and exchanging it for its own sake. Not as a medium of exchange, so people were expanding Processing Power in order to buy bitcoin and then they kept their private keys on their computers. So they went through the cost of homesteading, bitcoin effectively in order to hold it. So thats a market thats a good if you. But you know, if you, if its actively can think about it as digital homesteading. You, you go to an empty land and you put a fence around it and you build your home and that becomes your land. Because if nobody had claimed it, and now youve claimed then and now its become a scarce economic good that you own the same thing. Happened with bitcoin before because it was used as money. So then after about a year and a half of people trading bitcoin back and forth between january and may 28th, 2009 in may, 2010 may 2010 is when we 1st had somebody use bitcoin as a medium of exchange where somebody paid for those pizzas. So before that, bitcoin was a market good, people were buying bitcoin directly from one another. People were mining bitcoin and keeping it with one another. Only after that did they use it as a medium of exchange . So i dont see how it contradicts mieses. They are him and also doesnt contradict them because even though bit quinn has no industrial uses in the outside world, because it does have one nonmonetary use which is unique bitcoin to pay the transaction fees of the bitcoin network. And thats the only, thats the only unsensible network in the world. So, you know, its, its, theres the suez canal have values the only place where you can go from europe to asia without having to go around africa. Its a scarce resource. And if you want to go through it, its valuable. People pay for that. But what about this is being unimpeachable. The fact that big point separates money from the state and that would seem to be in the history of money the 1st time weve really had that. And i mean, you could say gold is not necessarily bad gold. d there are less a centralized by the state. Your thoughts, you know, to be fair, like the gold under a gold coin standard before a Gold Standard than the one when when people just using the physical coins, i was pretty decentralized. I think they, the more decentralized, the more you go back in history, the more decentralized it was, anybody could make their own coins. And maybe the best example might be the islamic dinar of a decentralized currency because it was popular. Its still being used as been used or all over the world for around 1400 years now. And its still a unit in which people actually conduct transactions. If you want to get married, are you pay your dowry in gold coins and a lot of transactions are being done in that islamic do not, which is a specific weight of gold that anybody can issue anywhere in any way you can verify anywhere on the sea is not as easy to verify as it is with gold, as it is with bitcoin, but it was effectively decentralized. Yes, islamic states where in charge of it and they minted in, they put sometimes they put the name of the caliph on it. But anybody could mint a coin like that and anybody could use it and it has been in use for 1400 years all over the world. So its not entirely the bitcoin separates the money from the state money is existed before the state, but it separates this current iteration of money from the state because the state was able to take it over because of its ability to control clearance. A settlement the central banks. Ok. Speaking of states and world organizations and other World Economic forum wants a great reset, is beginning it, theyre going to get a bitcoin. Thats what the coin does because it is the great reset. They just dont know it yet. What do they think theyre going to get . I dont know. They want to give people a whole bunch of soil burgers and windmills and you know, test and trace and endless drugs and vaccinations and lockdowns and im not quite sure what theyre trying to get at. Its a whole bunch of stupid, pseudo scientific ideas that are popular with people who have far more money than sense. Somehow apparently, you know, using all these incredibly unreliable and extremely expensive sources of energy like solar and wind is somehow going to replace modern civilization which is reliant on hydrocarbons. Good luck with that. Id like to see somebody from the people who wants to impose this greatly said go one year just one year without using any products from hydrocarbons. And then once theyve completed and survived that year, and they can manage to get online without using hydrocarbons, they can send me an email and tell me here i did it. And then i will, you know, i will gladly admit, im mistaken about this, but until then these people are just, so im just delusional. We cant get rid of all of those things. But a big point, standard image of twitter, where ive never read books anymore, is actually i book i read cover to cover. So i would imagine that the fear of standard sequel by safety analyst is equally compelling. Now, how can i get my hands on it . Im surprised, i dont have an advance copy right now. That was a glaring over oversight on the staffs part. But how can i get a copy . How can everyone get a copy of whats going on . Well, if yes, that is not finished yet, im finalizing it as we speak. But you can subscribe on my website, say 15 dot com and you will be getting a chapter from it every 2 weeks. And as i allys it and put it into print, itll be out in print around the middle of the 2021 until then im looking to be sending out emails to go to my website. If you do not subscribe and youll get this book and you will also get my other book, which ive been working on for the last 2 years, principles of economics, a textbook in economics. And you would also get access to my 4 online courses in australia. Can all mix as well. All of that on safety dot com floor, 15. 00 a month or 100. 00 a year. Thats a fricken bargain. I can tell you that right now. Anyway, saved a thanks so much for being on kaiser report as always. Thank you so much for having me. Max. Always a pleasure. All right, well thats going to do it for this edition of kaiser report with me, max kaiser and stacey. I would like to thank our guests save data. Most writers books by calling standard in the field standard the next time by all high social class people if youre born into a poor family, if youre born into a minority family, if youre born into a family that only has a single parent that really constrains your life chances people die on average, 15 years old, born into generational poverty fight every day to your needs and the needs of your family. Thank you. Tom by the market will dictate us getting enough book as a composer. Good luck to you. If you come within a month up in the middle of the job Center Holding up as a youngster, the need to get an image abroad. Not ever buy a book about one or youll remember are part of our number one. If you wanted me to some of the on investigative news website claims to being blacklisted by British Intelligence officer, exposing government surveillance practices says the classified u. K. Says its being targeted by a hong gallery along who resigned his seat in the European Parliament off to being porter. At a party in brussels at meijer describing as a mostly male orgy to e. U. Diplomats were among the guys and there on the out into the open the mud to all the top scientists to brown wings to hunt down criminals