costs an increased consumer demand. meanwhile, factory gate prices in china rose. busy at their highest clipping more than 2 and a half decade. nations brear bureau of statistics released figures on wednesday showing producer prices rose 13.5 percent year over year. the biggest increase since $995.00 costs for the materials wholesalers buy from producers has been trending up in recent months. as china dealt with coal shortages with the energy crisis, causing upward pressure on commodity with these numbers out pacing analyst expectations, what is the outlook for the worlds to most crucial economy? joining us, discuss our friend tolbert smith is the ceo of transformative research tobin. it is always a pleasure to have you on the show, and i know we beat this drum pretty much every time we talk about inflation. but the bad content, it's all transitory but we keep hearing warnings that it could. we could see high inflation for that least the next 6 months, while goldman sachs issued a note on sunday saying a place it's going to get worse before it gets better. where do you see it had it? well, i never took my newsletter, but just let me tell you what i sent to thousands of people yesterday. which is that when we had low inflation, there was a whole bunch of reasons why we had low inflation. and one was we had a lot of people to work for. second was of course we had e commerce taking prices down, making more competition. we had the go baby go fracking, you know let's, let's drill a 1000 wells a week. even though we didn't know whether we're going to make any money, everything was going right. well now, brett, everything has turned sideways or in reverse. and the fed, as measured by the fed features. if the straight futures we were looking for a rate hikes in 2023. now we have at least 2 rate hikes. one started in july, probably one in december and then september perhaps 3 because the genie is out of the bottle. the fed knows it. now want to panic, but i'd be prepared to keep our values inside the fed room right now because we have sticky inflation. every part of the inflation curve. prices are higher, the band is higher, so we have poor push inflation and we can't push inflation. i've never seen it before, and i've been doing this a long time. and so, but i wanted to clarify something about in place and because i, i respect your genius here on the program. but the reality is we are the prices go up, the inflation rate will eventually come down. but will we ever see those prices actually come down for consumers or is this kind of going to be once we hit that top and we start to level off, is that just the way of life from now on? well, look at in the longer run, you know, the beauty of capitalism is that if, if i can make something cheaper than somebody else can, i'm going to get it out of the market. i'm and again, market share. so yeah, let's take all the industries together. but price inflation, you know, when we were starting this, it was, oh, got rental cars or used cars or, you know, a parallel to china prices have caught up, but it was not systemic now, but if his stomach, and unfortunately the way that you crush inflation is you raise interest rate still point that you take the marginal demand out of the out of the, you know, at cars, home prices go up the whole mortgage, just go up yada, yada, yada. were not there yet, but, but if we're going to start rate him, remember rate there at 0? look at the wage hikes, we have 8 percent 60 percent weight type, but now there is 0 because of the inflation cost, the higher prices to buy food and clothing and water and boom and everything else. so we've lost the wage heights, that's going to people too, who are selling products, who are paying a lot more to put their products out. so they're not making anybody, you know, any more money we so it's going to take years, not months. and you know, the risk here is that if i own a tech stock, it sells for 50 times it's revenues and makes very little profit. and all of a sudden i got a discount. those, those earnings by, you know, 2 or 3 percent. that means those stocks are coming down to and now i want to go to you and you mentioned the chinese producer prices that we talked about there at the top of the show. i mean, is that causing this ripple effect into the u. s. with as we are so reliant on these chinese manufacturing as well. well, it's one of the components, brent, but remember, even if they produce the stuff they can't get it to their customers because of the supply chain delays. and you know, we said this before, when you think about a supply chain, one chicken, that armor slows everything down, and right now the chicken, the armor is as they can produce them, they can get them to the customer if the customer can't get them to then they're going to, the prices of whatever amateur they have on, on hand, are going to go up, add. so it becomes a self reinforcing feedback loop. use that term and think about that because that's exactly what we're in right now. is higher price, but gets a higher price. and then you get into a demand issue right now, strangely, as prices go up, we have more demand. why? because we went through the frickin pandemic and you know, people put off buying a lot of things. people put up a lot of services, so we've never had where are you an actual production prices going up and demand still going up? never seen that. i can remember. and that's what so insidious about this type of inflation push. pull, pull, push, and i know we tend to have you on it with your invest your ackerman on the program or a lot and bitcoin. it's hit record highs early where they just shy of $69000.00 that the inflation data was released as a crypto sector. is this kind of real bull run lately? do you see it as a legitimate inflation hedge? well, i would commit, you know, maybe 5 years ago i would not have but i think the 2 things you know, we've talked about of bitcoin is number one. if you believe in it, you believe in like a religion. and there's $7200000000.00 people connected to the internet, who for a dollar can buy bitcoin. so if you then go to make the 2nd leap, that since there's a fixed amount of bitcoin and an unlimited amount of currency, that it's the true, you know, gold, digital gold. that case has been made pretty well right now. right? so gold is going up. silver's going up, because going up, those are classic inflation. real estate, those are all classic inflation deals. i feel like back to 70. get my goal. i'm buying homes again. we're investing in the home builders because it's changed, man, it's changed tobin smith. i know we tried to solve all the world problems and we probably didn't do it today, but we put our best effort in gilbert smith of transformative research. thank you so much. always a pleasure and a follow up to one of the worst ransomware attacks in us history. the us justice department has charged to man accusing them of being involved in a cyber attack in july of this year. that effective as many of $1500.00 clients of technology provider can say at court filings on monday show you're a swab basinski who was arrested in poland last month and your guinea, pollyanna, and were charged with conspiracy to commit fraud and conspiracy to commit money laundering along with several other offences. according to the justice department, the 2 were acting as operatives for the hacker group are evil, which was also allegedly involved in the ransomware attack against global meet supplier j b. yes. the charges come in. the united states has made dealing with cyber crime, a huge priority after these 2 high profile situations, as well as the attack on colonial pipeline. joining us our discuss what we've learned from these latest charges and some other cybersecurity news of the day is morgan, right? chief security analyst at that no one and former senior advisor, the us state department, anti terrorism assistant program, morgan, always the pleasure to have you on the program. i want to start with this. i mean, what did we learn from these new charges? did we get any insight into the tactics of how these cyber criminals were actually operating? no, not really, brent. i mean, this is, i don't want to discount this, but this is the equivalent come equivalent of d coming out saying, hey, we just arrested 7 guys for someone to if we got to 8 balls, if we just stop drug trafficking, as we know it in north america, this is not any words near close. they got $6000000.00. that is nothing but a rounding error. and when you look at the amount of money and we're talking to the billions of dollars that has been lost ransomware, so does it strike fear into the heart of other ransomware operators? maybe a little bit. but the thing that's more interesting about this is extradition has always been one of the biggest issues you can indict all the people you want. but if you cannot expedite them and bring them back to the united states, nobody wants to come to the united states. pablo escobar learned that nobody wants to come to the united states, l. chapa, learn that well. we've got to start applying that same mentality to ransomware people and the fact that they were been committed to ukraine going into poland or some places like that. that means that we're sharing information and intelligence. so that's good, but are we going to stop this? i don't think you're going to stop it because these organizations still operate in places. we can't touch them and somebody will if that i appreciate you coming on and actually give an offense straight talk to her as well as that. maybe this isn't as big as they make it out to be. some analyst pointed out that going after affiliates of these organizations, like the 2 men who have been charged, can be very effective because of their skill set knowledge of the situation. saying it's even better than maybe going after are able themselves again, maybe they're patting themselves on the back. but does that make any sense? you know? no, not really cuz guess why this? there are so many affiliates out there. so they got one little branch of a multi branch, you know, organization, all these affiliates could they have some unique skill sets that if they weren't able to apply those, that might slow this thing down. i will tell you, here's, here's what i noticed. i didn't notice that i didn't notice a change at all and the number of rants more tax occurring. so they arrested these guys. what's changed? quite frankly, the answer is nothing, nothing is changed. nothing's changed until you can actually take out the organizations or the other thing we have to do. brent is start changing our terminology. we got to quit talking about responding and recovering. and we've got to start talking about investing in technologies that stop and prevent otherwise, you get the equivalent of a fire alarm in your house. it says, congratulations. your house has successfully burned down. i don't need that. what i need is something that stops the fire from occurring in the 1st place, stops the ransomware attacks from happening. that's the only thing we can control from a country standpoint, from a critical infrastructure standpoint, is to stop the attack. we will never stop people from wanting to launch the attacks against these and is the answer. they're really money. i mean, when it comes to like a private company, i mean, we know that they're basically doing the bottom line situation where there is technology experts who are say, know, this is how much money we need to spend in the company saying, well, we're willing to spend this much and there go okay, well that puts you 5 years behind the hackers. so is that really the issue? you know, it's the mentality. brentley. i actually, i have a meeting coming up with some folks from both sides at the all coming up this weekend and my message to them is going to be the problem. is that the problem? the problem is the way we think about the problem and that's not even what counts the way. the problem is the way our adversaries think about the problem. and that's what we're really behind, we're behind on the way our adversaries think about the problem about how the hackers think about the problem. so if you're going to spend money, spend it on investing in newer technologies that can automate responses to these things. would you rather have the old version of the fire department where they ring the bell? 5 guys run out, hop onto a horse drawn carriage and come out and pump the water into your house. or do you want that fire suppression system that automatically detects it? and stops the fire from spreading. that's the mentality we got to get to unfortunately, federal procurement and some traditional procurement is still buying the old stuff . so it's the joke of yesterday's technology tomorrow. we'll solve all our problems . not really on that. and that's what i would say is, does that technology exists? it is readily available for, you know, especially critical it. and so it does. okay, there you go. now i have a couple of one more point here about are able, before we move on, if we have time here. because the groups involved in these 3 or 3 of these recent high profile hacked, including are evil. and now they were actually shutting down operation shortly. afterwards, you actually believe that or are they just scattering to start under new name? now, gan crab, the one of the most successful wrench, more organizations of the world got $3200000000.00 our we're going out of business now. they're back. i mean, this is, you know, all this is, is, this is under new management. they think if they re brand, you take the focus off of the old name, and now we have a new name. but it's, it's, again, i go back to drug trafficking organizations. this is similar, sinaloa cartel, one day's marrying. cartel the next. it's the cali cartel. we still have the same problem. it's just under a different name. that's not going to change. what happens. you can change all the names you want. we still got a problem with ransomware, morgan, right? i really appreciate you coming on the show to delay bear these issues that fortunately it just sounds like we're say no, nobody's prepared to handle this. it's going to get worse before it gets better. but i do appreciate your insights at it. you bet rent and time out for a quick break, but when we come back, the last week has been less than stellar. for the world most valuable car company, a pest with the heel on month. we way on the companies stock will break down. what is happening. investors should be worry that's going to break. here are the numbers in the quote a they're starting to say things like, we're gonna do exactly what we've done here at the u. s. government by blowing trillions of dollars on white elephants on billing da goals, and somehow that's going to cure inflation. of course, it's just going to exacerbate in place and there this is a recipe for, for more inflation. so it's financial literacy mixed with state sponsored propaganda over there at the major american networks. as a korea professional sport is much tougher on some than others with everybody. so why would somebody be lead me? i was just running a price upgrade to, to, to achieve really was, was trying to read on the paper this morning. usa swimming coach, arrested literally had sex with the 12 year old girl. this happens almost every way we get calls at the office. i get informed about one of my greatest fears is someone is going to start linking all this together is going to be a 60 minute documentary about youth coaches in sports like gymnastics swimming. is that documentary? see it? oh, naughty. if we can now look into people's minds, read the thoughts. the question then is what kind of consequences we could take from this? i think you take the example of like it would prevent us from like we wouldn't be able to lie anymore. if everything becomes transparent level, we're thinking welcome back of it's been a wild couple of days for elan la scan, the stock of tesla. first, let's talk about tesla, which saw it stock closed down almost 12 percent on tuesday after ceo ellen must over the weekend proposed selling 10 percent of the his shares in the electric vehicle business as a result of teslas doc dropping mosque himself lost $50000000000.00 in just 2 days that i wanna repeat that $50000000000.00 in just 2 days. it's the biggest today decline in the history of the bloomberg billionaires index and the biggest one day fall after jeff bezos is $36000000000.00 plunge. following his divorce from mackenzie scott and 2019 to discuss, let's bring in boom, but co host ben swan and christy i. christy, i want to start with you here, break down for us. what happened to teslas dock and how much tweets have actually impacted bet? it doesn't share down sharply after the result of must twitter poll came out with his followers telling him that yes, he should sell out so much cars locally opposed this entire point to plan to tax capital gain. but he has said that he would abide by the results the pull, whichever way it goes. so while it kinda looks like he's giving his loyal twitter or twitter followers, a choice, they really didn't have a choice here because much was going to sell one way or another. so i do think it was kind of genius to try to give the people the illusion of choice as if he was beholden to a dom twitter pulse. so no matter what the results of the pole would be, must would have likely started selling millions of shares this quarter, given the stock option, he was awarded in 2012 coming to expiry. so the gains on those chairs total just under $20000000000.00. so in order to exercise them, musk has to pay the income tax on the gain since the options are taxed as an employee benefit or compensation. so the total tax bill on his options at the current price would have been about $15000000000.00. and since ceo's have a limited window in which to sell stock, musk would have likely had to stagger the sales over the next 2 quarters in order to pay that tax bill. so a sale was inevitable either way. it just that now he looks like he's the good guy for abiding, with a public opinion poll. unfortunately for it has the stock, though it's reacting as any stock would to an insider selling a huge block of shares. and the market is now preparing for a flood of new shares to drive the price down in melbourne when it comes to the social media side. a lot of this job seems to be tied to those most tweets as a courtesy just pointed out. but how much do between really impact a company that actually has so much upside right now? well, i think it impacts it in exactly what kristi. you said there's one of 2 ways. so either you don't say anything you just started selling and then the price falls even further. i think you would see a much further dropped than just 12 percent. if all of a sudden the founder of tesla begin selling huge numbers of shares and no one really understands why, because looks bad. but if at the same time you've already gone through and it is a charade, to an extent, you've gone through the charade of putting together a twitter pole. you've gone to a charade of allowing the people to speak and decide. should i sell? and they're like, yes, so all right, i'll do it for you, but you're not doing it for them. you're going to have to do it anyways. so in, on some levels stem the tide of fear in the market to say, oh my gosh, why? the why must selling well, there's this twitter pole, he's doing that because if people told him to that sounds better than i'm exercising options that i have to exercise from a contract that's almost a decade old. so i think there is certainly a way of using social media in this way. look up whether you like him or not. and who does that project basis? but what do you like him or not like? he is a genius when it comes to utilizing social media to either drive the price of crypto currencies and coins that he likes to drive the price of test lead to drive the thought. mean he is very good at utilizing social media in a way where the fcc can't really do anything because it's not really seen as giving insider information. but he does it just enough to build a loyal following. so i think he played it about as well as he could have chris if you agree with beds assertion there that i mean it would have dropped any way bigger because it would have been like, oh no, the ceo of tassel or some whale for that matter. it's selling, you know, basically 10 percent of their shares. so would that have happened? had they not done this? absolutely, it would have dropped a lot further because everybody would have known it has to be a must because one, nobody has that many shares to begin with to sell 10 percent of tesla. he is one of the biggest shareholders ever. so he has to be, the de facto will not to mention as a fee of a company. you actually do have to declare every single time you plan on selling it . and you do have to start them every single quarter. because as we said, you have limited windows and weeks in order to sell, you can sell them a form or earning calls, etc, because that would be considered market manipulation. so because of that, now people actually have a reason, and that's the thing. people like having reasons for why a some x y, z name or crypto current. these either going up or down uncertainty is the biggest fear in the market when the market doesn't know what's going on when it doesn't have any explanation for whatever movement. that's when people have fear and panic, and that's when you have a lot of volatility in the market. but when you do have something to point the finger to such as this twitter pulled, that looks like all the people actually have some sort of say or opinion to make really now do their bidding. that's actually very powerful. so i agree, even though not the biggest fan of month, i agree that this move on, his part was absolute genius because it paint him as the good guy. he's doing what the people wants him to do. he's doing it for the people, apparently not for himself in order to sell out of a huge chunk in order to exercises, even, even though the new firms out of court christy, do you feel like i mean with this situation? obviously people on the top and we're just trying to get out with as much money as they could, knowing that this would eventually happen. so will that stock will eventually rebound anyway, after all of this plays out? correct? i think the stock will rebound, but let's not forget that. tesla is a big momentum name. and the reason why it's a big momentum name is because the law must, has post themselves as a figure head of this entire company. i was 10 percent of his shares. it's not that much. it still means that he is less vested in the company, so i don't think it diminishes him in any respect from tulsa. but i do think that as time goes on, if he starts showing more and more shared people will start getting the image that, oh, tesla is no longer the baby, maybe is focusing more towards space acts and he no longer becomes that influential . because let's face it if we're actually valuing tesla based on the actual market share based on sales of actual cars. it's not the, it's not worth that much. there's no way the stock should be this high. so a lot of this is because a cult momentum in the name of the law must that propels the name. i oftentimes good question, the idea that tesla is the most valuable company or car company worldwide. when they sell, you know, a fraction of the car, say toyota does band before we go mosque. recently tweeted that he would prefer to stay out of politics, but his lobbying efforts and tweet indicate that may not be the case. i have about 45 seconds left for you. yeah, i mean, you, i'm up is not interested in politics. he's actually pretty political, but he is. so, is he's not partisan and i think you have to separate those 2 things. you must, his lobbying, the, i think $2000000.00 is what they spent the last year between test once they, which is a lot of money. but at the same time, it's not a lot of money in comparison to how much money they that company actually makes. as a result of government policy, we talk about tesla and the value it has its real value comes from either being able to get tax incentives and being able to get government money or, or government programs that are driving everyone towards that. that's the real value of it, but i do think that you love for his part is pretty non partisan. he's an equal opportunity offender in many ways. he gives to both sides. he criticizes both sides . i think what he wants is to be able to lean into politics when it's convenient for him. but he also doesn't want to draw the eyer of government too much, which he seems to be on one hand draw personally. but again, all of his companies benefit magnanimously, as a result of government intervention and government taxpayer dollars. why he is the richest man in the world. i was gonna say it seems like he doesn't want to pay taxes that he definitely wants to make sure space x tesla is involved in whatever government contracts or bidding they can get. boom by been swat. christy. i think you both get and finally made your acquisition in the world of entertainment. as iconic director peter jackson is selling most of his digital effects to the weather, to unity for $1600000000.00. now, unity makes one of the most popular game engines for video game development. and where does technology has been used in blockbuster films, including the lord of the rings and avatar as part of the deal? jackson studio will be split up with the assets being sold to you to unity as digital. well, the visual effects company. what are the facts will remain separate, but is expected to become one of the biggest clients. the companies say the deal will quote, democratize the industry, putting the quote incredible exclusive and sophisticated visual effects tools in the hands of millions of creators and artists around the world. and that's it for this time it gets boom, bust the on demand on the portable tv app available on smartphones, tablets, google play in the apple app store by searching portable tv, portable tv can also be downloaded on samsung, smart tv and roku devices or just check it out at portable, that tv will see you next time on boone buttons. i bought the mic. no shit, you know, born is just like to tease and you fresh as a merge. we don't have with the we don't have a vaccine. whole world needs to take action and be ready to people are just, you know, coming 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 to response has been massive, so many good people are helping us. it makes us feel very proud that we are in it together with they would same with every passing day, were allowed to openly discuss fewer and fewer topics. the events on capitol hill on january 6 is one of them. what happened that day is a 3rd rail. was it a riot or an insurrection? even asking, this is inflammatory? it shouldn't be. join me every posted on the alex simon. sure. but i'll be speaking to guess what the world politics sport business, i'm show business. i'll see you then. mm. they're starting to say things like, we're gonna do exactly what we've done here at the u. s. government by blowing trillions of dollars on white elephants on boone da goals, and somehow that's going to cure inflation, which of course, is just going to exacerbate in place. and there this is a recipe for, for more inflation. so it's financial literacy mixed with state sponsored propaganda over there at the major american networks were empowering ourselves to be more efficient or quicker with our transactions. we can make mobile payments from our sons. the truth is that every device is a potential entry point for security attack, i think, okay, but i don't want to mention that actually with anything but only eventually there's malware that thousands, maybe sometimes millions each day. they use the cyber, they use the think apology as an extension of traditional artificial intelligence has not many main threat. this is due to the 3 laws of robotics. one of the things that's happening as a mini cyber implants. right now i'd be where they're very worried about it. most people would equally be you can put a chip in my brain. so there has been a lot of progress from the hacker side using ai and using other advanced technologies to there has been on the defensive lighten. i moved in with who you want to be when you grow old hunger and suffering at the border between bella russo, poland, where thousands of migrants including children, remain stranded while trying to enter the e. u. a group of nobel prize winners is demanding human rights organizations are allowed immediate access to the area a display of arrogance and impunity. the russian foreign minister blasts the use approach to the unfolding migrant crisis. and in other news, a world renowned lawyer says a recent guantanamo trial described as a stain on the moral fiber of america, could hopefully set a precedent for other victims of abuse at the hands of us agents. this is the 1st time that everyone got to hear in any.

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