United states in the meantime were getting a lot of vitamin d. Were hanging out in the sun outside we have a new report little image here and let us know if you like that but there is something that was in the news a remarkable screen grab from c. N. N. B. B. C. Jim cramers show mad money and it was the epitome of it was basically just one image told the story of a 1000 episodes of chrysler in part what weve been talking about this entire time and heres a tweet can tell on f. X. And it shows the image from c m b c in the background from jim cramer you can see the dows best week since 1938 and at the bottom along the cairo on more than 16000000 americans have lost jobs in 3 weeks as weve been saying for a number of years and it does relate to the content of fact and what does that mean that means that every time the government announces a 6 trillion dollar bailout that means a 1000. 00 for the top 101 percent and a dollar for you and thats the cantillon effect the hedge funds and the private equity guys and warren buffets of the world get the money 1st to bid up their assets and their stocks and their bonds and their wealth goes up and then they get maybe a dollar of that 1000. 00 to the workers who are actually keeping the economy running. Getting workers the frontline workers the Health Care Workers the delivery workers that are considered expendable and when you can toss around tens of trillions of dollars on a whim and the 3 and a half trillion dollars is collected annually in taxes is meaningless then they are expended bowl vats the reality of American Workers have to come to grips with they are expend job all in an environment where the fed can give their friends trillions of dollars with no restrictions whatsoever this is another clear example as well of being an issue of distribution there is no shortage of money there is no shortage of credit there is no shortage of room on the Federal Reserves Balance Sheet we see that now because when the hedge funds and private equity groups when they start wobbling because ever since back in repo something was going on but now we have them there are fracking debts defaulting we have the commercial real estate sector trillions and trillions and trillions of dollars trillions and the fed instantly is able to transfer money to them instantly in the other space where the rest of the 99. 9 percent of the population lives where we all live we have a situation where oh its so hard i dont know we dont have the money and we dont have the infrastructure we dont have the institutions like all these small and Medium Sized Enterprises having to borrow via you know the s. B. A. The Small Business administration that used to be set up during the end of the Great Depression to give money to them instantly and directly from the treasury now it has to go through banks but banks no longer lend to small and Medium Sized Enterprises because everything is about real estate in the commercial real estate and Derivatives Market and free money for them so we have a situation where theres no distribution of the liquidity of all the abundant capital in the system wont remember the soup nazi from seinfeld saying. No soup for you right i mean there was soup available but there was no soup for you so now the central bank has plenty of soup theyve got plenty of cash but no cash for you but why for no reason that makes any sense there and then the fact that they are in the service of a bunch of kleptocrats and are simply printing money for themselves i mean face it if you had a bank and you could print your own money and buy these for 150000000 or an apartment on park avenue for 250000000 as the Hedge Fund Manager ken griffith recently did who also hired ben bernanke he has his pen the condiments to work for him you would do it right i mean everyone would love to print their own money and buy rare arts of work or sites for gray or works of art trying to like your suit their you know. People in this fashion standards high during the pandemic i have a feeling people might not see it because there might be overmodulated in terms of thats why god like laura youre like i am so toshibas representative here on earth i am the bishop of bitcoin well of course were talking about distribution and distribution and how its not a problem of of having no supply theres plenty of supply of money theres plenty of supply of capital its all there we you know all these things are produced all this wealth is produced and its just about distribution because if you dont have this reaction if you have a lot of rocking rotting carcasses and rotting products in the field then you encounter a situation because. You know if a farmer had a Sprinkler System you know going through his entire field and decided well i like watermelons better than i like we saw im going to like favor the watermelons im going to give them all the water and forget that we were not going to like were just going to give them a little bit every once in a while or let it trickle down were going to put it up on the watermelons and hopefully it trickles down to the wheat well then your we harvest gets ruined right so that. Not the way you should be distributing it and speaking of farmers and Agricultural Products and this is the big issue in terms of getting distribution of this and i want to look at this screen grab here this is from a tic toc by the farm cad and thats a field of onions totally abandoned and he has nobody he could sell it to because normally he sells them to restaurants and all the restaurants are closed he points out and in his clip he says basically by closing out the restaurants the bridge is out the road out of here is out and its not for a lack of products theyre supplying here its about getting the stuff to the city and i cant get enough to the city so its going to be left there in the field to rot while people sitting here at home and lock down they might be you know desperate for some onions for their meals but we saw plenty of foreshadowing of this in the markets you know markets give great signals doesnt mean people respect the signals or cant hear the signals so we had 2 remarkable signals in the last 3 or 4 years that people ignored number one companies that would be perpetually unprofitable going public for huge valuations like nuber and others that stated in their prospectus we have no expectation of making money and yet they went public for billions and billions of dollars that shows that failure was being monetized and capitalized and bid up to extraordinary valuations we also had another incredibly insightful prognosticating market signal if you were listening to it and that would be negative Interest Rates negative Interest Rates a provably false. Invention of ersatz financial leisure domain that somehow game currency in the sovereign. Banks around the world even though it was a guarantee last so why shouldnt agriculture be a guaranteed. Luser is just mimicking the corporate world in a sovereign bombero and so the agricultural world is following suit they grow food that nobody eats this like they have companies that never make money and bonds that never show positive returns well in fact i did tweet out here that say u. S. Banks are preparing to seize Energy Assets of Shell Companies theyve lent to which are now on the brink of insolvency j. P. Morgan Wells Fargo Bank of america and city are each in the process of setting up independent companies that own oil and gas assets of course those are members of the Federal ReserveBanking System j. P. Morgan bank of america citi bank and wales far right to fracking industry being an industry that weve been saying now for 10 years is cash flow negative from day one energy negative from day one takes more energy and then comes out more cash goes in then comes out and now its going to be hardly supported by the federal government how is that different than soviet union 1950 it isnt its exactly the same so again were talking about supply and. Demand but supply and distribution of that supply there was no shortage of suckers this in these past 10 years no shortage of them why because Interest Rates were in 0 they kept going to 0 and negative in some places so they need to deal that any cost because we have these boomers about to retire on these huge promises given to them 2030 years ago that will give you way more than is possible under how much wealth and our economy creates now but if we collaborate lies the next 2 generations you know theres plenty for you but this is the conflict where you get in right now because the distribution of that wealth well the people who youve already taken their wealth theyre like hey what about my well thats my well so were seeing that intergenerational conflict because of the distribution of their wealth that was taken without their participation and that contract i mean thats a point that needs to be repeated so its their percent Interest Rates to keep the bailouts rolling back. To collateralize and monetize ever more greater pools of commodities in future revenue like Student Loans for example the reason you have so much student debt is to create tradable security to give boomers Retirement Income same thing across the board thats why you have health care being commodities and turned into Financial Instruments to give boomers today who have 0 percent Interest Rates but they need 6 or 7 percent in their retirement account to keep their standard of living at the same place thats why its packaged as a loan the collateralized obligation but it destroys the future so now students are destroyed and the health care is destroyed and the economy is destroyed been paul krugman thinks thats a good idea but at the end of the day nothing changes unless. Thats always the problem flower it was in the arab spring and member was caused by the price increases in member 20092010 after the financial collapse Oil Prices Went up 147 everything became expensive the egyptians couldnt feed their people were riots same in haiti same around the world same in revolutionary france if if the peasants couldnt get in that was caused perhaps by of ok now but heres a question asked by the Evening Standard have you struggled to find flour all that was made on april 9th 2020 on march 29th 2020 i tweeted supply chain collapse watch try to find a single bag of wheat flour only option is e. Bay at a 10 x. To 12 x. Mark up are there going to be food riots in america soon were not that sort of people but you look at those tens of thousands of people showing up in cars lined up at these food banks in San Antonio Texas down in florida all over the United States outside of vegas theres huge thousands of cars lining up philadelphia lining out to get products and some of the articles did mention that part of the reason is not only have millions lost their jobs but they cant find any products on the shelves in the super. Markets right its a lagging indicator if you will so that the fine art market which i think is a great market to give an indication of where prices are and where theyre heading the fact that fine art of sothebys and other auction houses has gone up dramatically over the past 10 or 1520 years spectacularly so its not reflected in the price of bread until it is and now its starting to be that way so that inflation that we saw in the High End Products is down going to end up being in the staples like wheat bread food chicken i just saw somebody post a image of a chicken for sale somewhere that price was up 100 percent the problem is is all that money and that causes inflation or deflation or hyper inflation but the distribution mechanism remember the fed only has the ability to feed to the bankers to feed to take market wells fargo citibank and bank of america only feed to them so all of their artwork like our wonderful piece here for sale for whatever you want to pay but they could distribute easily to them but its the fact that nothing goes down into the bottom and therefore those products dont get made nothing gets me even the Food Products for the poor right or the money goes to the top it doesnt go to the bottom and so the efficiencies at the bottom collapse so all the industrialization collapses and then you have the prices skyrocket because its all parties and all your blood being arties all bread is artesian all at some point because all the bread factories are shut were going to take a break more supply of kinds of report after the break dont go away. Were going to be good on the growth rate if theres going to be one can be expected through the pandemic is going to. Come host the beginning changed accounting. Is the only chance of returning to pretend india. Told them that is to be some cycle. The link he says sometimes you can see jordan the police want. To take the safe rule sets off the next you dont. Give us an emotional safety feature on your mobile she was one of the. Welcome back to the kaiser report im max keyser time now to turn to Steven Mclaren hes a former bond trainer turned bitcoin investor with the appropriately named exponential capital stephen walt of the kaiser report thanks for having it all right lets get right into it the fed has promised wall street that there is quote no limit to the amount they will print they are now buying junk bonds and c l os that would be collateralized Loan Obligations thus bailing out j. P. Morgan wells fargo citibank which own 81 percent of these what comes next even you know digging into the fed announced last week on junk bonds theyre essentially bailing out any company thats a fallen angel so if they were a investor grade corporate rate it on a. Shell to below Investment Grade which by the way every airline in the u. S. Except for so west is no below desperate they going to sicily by those parts the question is whether or not they start moving into things like equities or high yield bonds that are junk rated so you know thats big really proving that you know theyre discounting crude investors at the start theres a concept that has been floating around for quite some time called moral hazard that is if Companies Make mistakes should we really bail them out of course covered 19 is a pandemic that nobody saw coming however these airlines fail to put any cash in reserves as a matter of fact theyve been using free cash to buy back their own stock to give their executives huge payouts and they brought this on themselves in many ways so should the public be bailing out. Praful get Airline Executives soon are acting in a way that well used to be called fast. Well youre right you know a lot of a lot of these airlines have been you know mismanaging their their their body buying back their equity in order to you know. Give greater bonuses to their investors and to their to their executives some of the airlines are a little bit more prudent. For instance Southwest Airlines is a good example you know theyre there theyre much better at Cash Management theyre much better asleep management. They are its one of the reasons why theyre still better great credit for instance but you know it at a time like this even though im im a libertarian and dont believe a whole lot of Government Intervention if the governments going to you know for shutdowns or Public Safety then there should be a limited amount of of a bailout in my opinion or limited about relief and help. You know it all depends on how they go about rates so so so Many Airlines like delta they theyre only days away from being and so they have no assets they have very little cash left in a lot of debt but some of the other airlines like you know ive mentioned southwest or jet blue or even alaska. Have been much better in the past management much better saving for a rainy day so to speak but i but i believe disappoint time where a lot of big airlines really should just go ahead and file for chapter 11 American AirlinesUnited Airlines delta thats really the only way theyre going to get out of a lot of the obligations they have with the unions ok well the fed vice chairman Richard Cleary does says the central bank has the tools needed to keep the u. S. Out of a deflationary trap what tools do you think hes referring to and while they work some of the things that you know that are there that are obvious or are by got assets right so you know new tools really were the massive bond backed by programs that occurred 10 years ago and the new tools today are buy junk bonds and other Corporate Bonds as well as when its a power if you remember 10 years ago. Oh there is the build america Bonds Program where sort of by Municipal Bonds to the Balance Sheet of said you know the u. S. Government i decided to actually insure a portion of the coupon for build america bonds and they made them taxable instead of tax exempt so that other people would buy that their stock up thats calories of course but buying the muni bonds is its an ok idea but i think reviving perhaps the little barack Obama Program is a better idea im curious to see if the fed will start doing things like education history where theyre actually you know over