Is paying a dividend and he likes dividends but now were seeing this move into japanese stocks and that confirms that hes getting dashing out of the u. S. Dollar because as you point out the fed is them now muscling in on warrens territory right so warren cant go in there with these sweetheart deals and get these bailout deals in the sweetheart deals from these takeovers of acquisitions and huge positions that he builds up because the fed is now out beating him so hes got to go to japan now to find deals probably something he reluctantly to do because it signals that his saying is to as he always says that never sell america short right well thats a buffetts doing hes essentially selling america short so he bought the 5 largest Trading Companies in japan these are the huge conglomerates he bought 5 percent of them and he says he may go up to 9. 9 percent so this is again the ongoing temper tantrum. Hes thrown since april when he told the world essentially that the fed outbid him for the 4 Major Airlines here that he owned 10 percent about 10 percent of the companies so he was going to rescue them bail them out but very favorable terms to him and has investors he was outbid by the fed who gave them billions of dollars for nothing in return except for keeping employees you know in in their job up until october 1st and theyre using that as a way to get some more free money but here warren buffet was like he was outbid by the fed and he said hes throwing a temper tantrum saying well dumping all his Airline Stocks immediately the entirety of it a huge loss dumping his bank shares again because the fed is the biggest player there hes not going to he knows that this next crisis thats coming hes not going to be able to do Goldman Sachs sort of deals again where he got a huge preferable you know return in exchange for bailing them out in 20082009 so here hes doubly shorting the dollar but he cant like hes Warren Buffett he doesnt want to get in trouble with the authorities i say he cant just openly short the us dollar they openly kick in a stand on their face but what hes doing is by going along japanese conglomerates and including one of them by the way which is called the itochu and it was founded in 858. 00 but among japanese Trading Companies it is distinguished by not being descended from an Historical Group which is the imperial power groups but by the strength of its textiles business and successful Business Operations and china so in a way its also him going along the end of this u. S. Empire and the rise of i dont know if itll be an empire but a chinese superpower right right exactly so theres a changing of the guards the u. S. Is losing its cachet as worlds so. Well superpower what u. S. Dollar is losing its status as World Reserve currency you are moving into a post u. S. Dollar as World Reserve currency era and so buffett is picking up stakes and hauling out these moving to asia especially the big portion of his portfolio and. Deleo who is another huge day when the Money Management space is got 20 percent of his portfolio hes the worlds biggest such fun now in actual gold bullion you know gold bullion surrogates and so that tells you also that the u. S. Dollars days are numbered and i read that Warren Buffett actually bought the shares just like any normal schmoe coke over at on the market he didnt get a sweetheart deal he didnt get to go directly to the you know the board of directors and buy some deal straight from the company like he often will do here so he was like an ordinary investor using robin hood out and just buying up 5 percent of these companies and he said he may do more so its an interesting thing to look at this is something that max and i have kind of been predicting as you know empires always fall slowly and then suddenly everybody goes bankrupt slowly and then suddenly and thats what youre saying but Warren Buffett as we just recently covered you know he bought 560000000. 00 with barrick gold the largest gold miner in the world and heres the headline that followed right on this because after meeting with their Investment Advisors on august 26th this is the headline from 16000000000. 00 ohio police and Fire Pension Fund approved a 5 percent allocation for gold this is to help diversify the funds portfolio and to hedge against the risk of inflation according to Bloomberg News all right this is really big news you know in the buffetts investment into gold set the stage for this type of activity institutional money moving into gold hes kind of like the godfather. Or of Money Managers a lot of ways and what he does that is makes it ok for others to do so the total global 100. 00 chilean dollar Money Management pot of funds being managed for those with discretionary funds who need their funds managed is right now less than one percent gold and so these Pension Funds have stayed away from gold because it pays no income but would make rates at 0 were going negative thats no longer a negative and the inflation genie is out of the bottle so now theyre if they do a 5 percent allocation of gold and you figure this new apply globally to the global money market business they that means are going from less than one trillion invested in gold to more than 5 trillion or more and the whole gold market itself is a in a trillion rate have chilian so the demand for gold is about to increase in the in that sense by the managed money business by 500 percent so theres not that much gold around its finite resource and when you put it against that type of number you cant source it. So were going to start to see either a gold just gaps open at 4000. 01 day or were going have a global reset as many predict against the dollar as we did during Bretton Woods or we did the 1930 s. I should say the 1000. 00 thirtys america revalued its gold by 40 percent yeah well because while the largely the size of the gold market is about 9 chilean dollars just under 9 trillion dollars a lot of it most of it is whole held by Central Banks who arent you know thats not really investable gold for the ordinary person only about a trillion dollars of the market is invest investable so if if a couple you know if hundreds of billions of dollars now interest that market it does drive the price up especially and i day of pandemic where supply is becoming shorter and shorter but in terms of this ohio police and Fire Pension Fund what theyre actually even betting bigger than just buying 5 percent allocation to gold is their leveraging their bets because additionally the fund plans on adding the gold stake by borrowing the fund is reportedly increasing its leverage from 20 to 25 percent to make the change so theyre betting that if they just put a smaller amount they could just have much bigger gains there theyre betting on a huge increase. Right wow you know leveraging a pension fund is probably not a good idea and theyll get the big bang for their buck they should just buy more gold and leave the leveraged to the suckers and so the likes of ray dally oh and stuff well so heres a good assessment of that i found on twitter from Garrick Moore and he said barbara relic pet rock public enemy number one to gold has begun a major transition buffett is attracted to enormous cash flow and dividend potential beric then reserve bank of india signals higher allocation and now ohio police and fire pension approves the 5 percent allocation so as weve been saying as we said at the 1st of our summer solution series that theres a sea change in the psychology of the Global InvestmentCommunity Everybody senses you know if the elephant runs away from this the now me you know Warren Buffett is one of the elephants of the investment world and hes if hes running away from the inflation tsunami coming and ray dally you know the largest Investment Fund in the world if theyre running towards you know away from the tsunami then you know the ordinary person should not fight the elephant running that their instinct is perhaps better than there is great and noble ina who runs the russian social bank was ahead of everybody by hundreds of hundreds of tons for years now and now everyones singing her song and again you know this tsunami of inflation coming and by the way also like a tsunami of of deflation of a collapse and all the socalled value thats wrapped up in all of this debt that collapses and inflation soars in the rest of the economy with house prices education as we have already been soaring but also food prices car prices you know that the ordinary materials of life and again thats one of the bets that Warren Buffett is making with his investments in these conglomerates because theres huge commodity. Plays within that so hes hes hes betting on inflation but trying to do it without causing a stampede as much as possible is just im just doing it for the dividends and things like that but heres a great chart that keeps on getting updated by Fenn Heinrich and i says what would you do in this situation so m 2 money supply as we have seen has keeps on going up but its really gone parabolic this year and the money velocity continues to collapse and has just completely fallen off a cliff and the last year as the rich get way richer hundreds of billions of dollars as we cover jeff bezos has made 75000000000 and net worth just from the gains in the inflation and the stock market here from the fed printing money so its not circulating you know jeff bezos had a hard time spending 130000000000 when he was only worth that in january is he going to spend 200000000000 you know whats he going to spend it on when we want to see this this overlay of these 2 charts being papa got more and more i mean kaiser report we started to make this comparison 5 years ago just show money velocity was crashing against money supply with them too and now its become you know common wisdom has become you know the talking point for a lot of folks and it is the one chart that explains everything they need to know about why the u. S. The u. S. Dollar is losing Global Reserves well we all grew up maybe not kids today but we all grew up playing monopoly and we know what happens when our plate when one person owns all of the real estate on the board and has all the cash nobody else can play right because theres no money to go around and the game is over so thats what happens right here and its a game of monopoly where the person who prints all has all the money to begin with so they buy all the real stay with the money theyre printing and its a special black lives matter version of monopoly so in any black person roll the dice they go immediately to prison thats the american system or. Were going to take a break though we come back much more coming your way. Just to. Say that the british. Terror. Watch. List. For sure. Its a mistake. For sure. Throughout its history with the selfproclaimed Islamic State terrorist group have recruited up to 30000 foreigners from all over the world to find. Sounds of russian citizens left their country to join the terrorists often bringing wives and children with them. Mall in utah. Hundreds of children and we do is welcome to come to disappear. In russia childrens families willing to. Welcome back to the kaiser report imax kaiser time now to turn to cost over there a cress cat capital hobby welcome to the show and next thanks for having me its a pleasure to be here craig well thanks for coming on and i follow you on twitter and thats how i get most of my smart sounding soundbites i borrow them from smart people like you now earlier this week you tweeted a chart of tesla versus Venezuelan Stock Exchange and you wrote quote tesla has outperformed hyper inflated venezuelan stocks in the last year this is turning into a Banana Republic none of us own enough gold all right so this is what caught my eye here because weve been talking about the venezuelan stock market its been on a huge bull run people dont understand that what that means except for us so dig into this for us a little bit if you can tabi. Sure more originally from brazil so i definitely went through a lot of what happened in that mid ninetys than brazil was devalued its currency significantly we have actually had to change currencies at the time and that caused a hyperinflation mode in which stocks actually went up significantly at that time and its hard to say i mean i think i think in terms of the math of all imbalances that we have debt wise valuation wise me were asked were probably going to meet a nice friendly to Something Like that at some point i dont know when but at some point were probably going to go towards that direction i think the comparison with business well is just what were seeing with a company that makes no money and were seeing that across the board we have zoomed yesterday crease it is earning significant i think a big increase if he asked that i 32 times but he still trades at over 128 times yes of 2022 and this is you know a situation where valuations like that is really happening all over the equity markets in the u. S. I think i think its all a product of easy money that weve seen throughout the years and its getting a lot worse recently as we heard unlimited. From that from powell in the last few months i think that its just as impactful as it was back in the 1971 when we broke the Gold Standard here in the u. S. If that was a very impactful moment in which in marked d a real lack of fine a show monetary and fiscal discipline in general and which cause a fanatic gold bull market for another 10 years i think were in a very similar environment today with its recent a fat q e 2 to infinity and i think you know its a great time to on go in and i think anybody has any idea what we probably could happen with Precious Metals here i think its very positive for for death space and especially for miners to have been so depressed for so long so theres. A lot of opportunities there to unpack but certainly those are my comments in terms of whats going on with tesla not there are crazy stocks moving in in absurd directions parabolic really right now when you look at the venezuelan stock market or zimbabwe or a round you know you have these incredible moves on the upside and these are economies that are experiencing hyper inflation and theres a huge wealth disparity obviously the vast majority of venezuelans are not buying stocks because theyre grappling with hyper inflation same thing with the bob way and iran and america it seems like thats the deal happening here right because 90 percent of the stocks are owned by 10 percent of the population and they are the 1st to get the money as a rolls off the Printing Press but they can tell you the facts and they go into the stock market because they want to avoid money they want to avoid the u. S. Dollar and is it too much of a stretch to compare venezuela and in america right now in terms of whats happening on the stock market versus the underlying currency not the venezuelan ball of our but the u. S. Dollar is the u. S. Dollar and evil have been south america is the u. S. Dollar on the verge of of do you see it exhibiting the kind of characteristics one sees before i for inflationary collapse and theres the confidence evaporates in the currency tabi look i actually have a very different youve been a lot of people in terms of the dollar i think race to the bottom of all fear currencies really but perhaps its all i look for the mentally stronger than other places in my view and thats just because the way the world functions in terms of its all around the dollar i think for that change will take you know perhaps a lot more time than a lot of people think when you curse. Her t. V. Terms of the ownership of the assets relative to of the population in venice florida certainly has a case in the us matter fact if you look at the fed Balance Sheet and you just chart that along with a chart looking at the bottom 50 percent of the us relative to the overall piii can see that those 2 are inverse correlated you which means the more the Federal Reserve prints the last money those are going to last theyre going to participate of the overall market in terms of being part of the overall pif so i think this is all linked. To the monetary policies weve seen but the Ferry Service and have an option here it really is painted into a corner it has 2 options they can keep buying assets and suppressing Interest Rates given the levels of debt that we have in system and just have gold silver miners point and some other assets their service as own target if for the Monetary System to surge as weve seen so far or you can stop doing it all in the systems going to collapse why because certainly Corporate Bond yields dont deserve to be where they are today and theyre only there because of manipulation by by Central Banks i just showed a chart of Corporate Bond yields below inflation rates today you know who in their right minds would ever buy a Corporate Bond extremely from a sexually Indebted Company less than inflation when you can buy Precious Metals or even a minor way with a much better forgetful yield then you ca