And you know what happens is it shrinks in size the tube shrinks in size when how to get out of it how to escape it is useless and relax and put your fingers together and the holes expand you know when i can watch this for our were not a magic show but what is magic is what the fed has been doing what the u. S. Government has been doing for the last 20 years any time the debt load gets too big and all the fraud gets too big and the t. V. Ofr all of them the dot com crash every single time its met with more money printing but this cycle the fact that it keeps on crashing and keeps on the fraud keeps on building yeah its like theyre stuck in this chinese finger trap they keep doing the same thing then printing is exactly like the little kid pulling their fingers further and further apart in other words they should just like if they find themselves in a hole stop digging thats the western analogue to the chinese finger trap perhaps but you know what the thing is. If they would just relax if they didnt try to micromanage if they didnt try to rescue all their banker friends and commit the moral hazard if they just relax and said you know youre not to fail that business is going to have to fail that fraud youre going to go to jail you know if they just gave in to what is the natural Business Cycle and instead of fighting the Business Cycle the Business Cycle sitting there right in the middle of the chinese finger trap all they have to do is just relax let it fall apart let it collapse let it go bankrupt right well theres moral relativity and moral hazard associated with what youre saying here in the economy on wall street in the Banking Industry they keep. Moving the goalposts in terms of what constitutes a moral or even legal activity weve been saying this for a long time now every time they commit an illegal act they simply decide to change the law and say well thats no longer illegal thats how the 2008 crisis was a repeat of the s. And l. Crisis of the eightys under reagan and the reason it was allowed to happen is that after the s. And l. Crisis there was a whole sell re architecting of the laws governing the banks to make what was the legal then no longer illegal and to make it legal and in 2008 what was the legal was legal and they committed that massive fraud and there was that Global Financial crisis and then after 2000 a week after lehman and bear went bust they said you know what we dont want to leave any of these banking shenanigans behind we need to change the laws again to make even the few things that were illegal now legal and now we have 2021 years literally nothing in place theres no laws or if there are laurels there is no enforcement and so its just a chinese finger puzzle really between satan and jamie diamond i thought they were the same thing but thats another story another episode weve covered that many times so on this front though you know the kid. Child who you pull the trick on they put their fingers up either end and they start to panic they pull harder and harder and harder and the same thing youve seen this over and over with the Us Federal Reserve and remember its only been around since 19131914 so its still a baby compared to say the bank of england which has been around for hundreds of years so what youre seeing is remember we keep on hearing about this conundrum they cant figure out why wages arent rising they cant figure out why consumers arent spending they cant figure out why deflation keeps on happening they cant figure out why this money printing the same thing is like im pulling so hard i cant figure out why i cant get my fingers out if youre well. You know that construction but i told you about the tubes how they constrict thats like the money velocity collapsing thats the same thing you see that in the trick there the puzzle theyre trapped in these in this ivory tower of the new york fed and the st louis fed and the chicago fed and all the spencer all stuck in this this mind trap of this finger trap of might this show that they keep doing the same thing over and over this cognitive dissonance is that they they dont understand that by doing the same mistakes over and over again theyre going to end up with the worse and worse outcome because at the same time they write eloquent op ed pieces for the wall street journal that explain the eloquence and the sophistication and the area fission of these policies from Larry Summers and others how genius they are from the bowels of the harvard think tanks and why this is of course the right thing to do even though the results the actual proof of what theyre doing is cash strapped for the adults in the room like us kaiser report audience kaiser port presenter is where watching the little child amusingly where like laughing but after 20 years its like chinese water torture youre starting like ok this is just torture this is like lets help this child out lets talk to them about bitcoin neutral unit of account gold like theres an obvious answer out of your solution that the relaxation is let the Business Cycle rule let neutral currency a unit of account that cant be manipulated rule like let that happen brett what is the chinese water torture become waterboarding rights of 20 years ago the drip drip drip of money supply increase was unnoticed but now with these Quantitative Easing Program just for like water boarding so the consumer has held down on their back and they have a rag on their face and Larry Summers and jay powell and jamie diamond are theyre poor. Buckets of water in their face and simulating the act of choking to death and saying this is going to continue until the deflation stops and then untold the actual pre you know person on the water boarding table dies and then theyll blame them and now lets look at their the whole economy here that is the Global Economy is almost entirely shut down and why is because the United States is the number one economy in the world and where the worlds consumer so japan and south korea and singapore know how to manage the pandemic and they can remain open and they can provide us with goods and services however were too stupid right were stuck in this this finger puzzle we cant figure our way out to most people the wall to all these people and asia who know how to wear a mask we seem pretty ridiculous lee stupid right like theres just put on a mask well you know natures igs and nature is a and what it is exhibit is a get what exactly a better zag so in the coronavirus it and in nature zig asia principally China Hong Kong taiwan. When america and United Kingdom zagged and the result is one was prepared is going to survive better and the others are not so good well lets look at 2 headlines about what United Kingdom and the United States did versus what asia dead when we went into lockdown max and i about 7580 days ago we thought it would be just like asia that it would only work for you know last for 3 or 4 weeks because everybody would be not stupid they wouldnt be sitting there 2 months later stuck in the finger chap like were still stuck in a finger chopped so there was one story at a new york and even though andrew cuomo now is considered a great hero and just because he does a good press conference like what did they do new york centric covering coronavirus patients to Nursing Homes ok Nursing Homes in america where the elderly are put they live and we sent recovering patients there but a lot of them werent recovering they were still infected and the last spread to the most vulnerable population everybody laughed at rudolph the red nosed reindeer that night when santa couldnt say. And he called on rudolph to help them got his sleigh and then all the reindeers loved him and called him a hero. And the point of my little story is that those countries that were once considered maybe to authoritarian or autocratic now are looking like well we know how to handle a crowd of iris and those that had kind of like an election system that produced the stupidest among us maybe not so smart ok look at japan japan is about 2 percent of the cases that the United States as they didnt have a lock down they dont do tree saying its because the people themselves are not stuck in a finger puzzle scraps you know theyre not pulling trying to pull their fair humble people thats why theyre at their home bill enough to realize they have to act new zealand very humble brilliant leadership america boneheaded egocentric much oh knucklehead theres like. You know the rest of the world knew and you could see it was china will hand 1st they feel they have the virus 1st and what do they do they separated the ill those with the coronavirus into their own separate units they built those tents remember they built to those hospitals those field hospitals and they put up the sick there so why suddenly spread it to everybody else so that was quite obvious here when i saw that tweet about new york sending the coronavirus patients to that old folks homes well we also sent our jobs to china and now pretend as if we expected a different outcome the same thing the same sort of chinese finger trap where like it was obvious right as soon as you export all your production all your innovation to china that you would end up in a situation like this where we dont have masks partly because maybe were too stupid too but also we dont even have them so its not because its not an option for us because we dont make mascara we have to come up with the stupid reason why were not Wearing Masks its not because you know the rest because we dont want to admit that were so stupid that we cant make our own mass own sense and a world war 2 United States has been the unbelievable winner of the global geographic macroeconomic gambling casino sure with the World Reserve currency and really smart intelligent financial engineers and you know Software Engineers but that lock is running a thats my thought is that this pandemic has exposed incredible vulnerabilities in the United States and the United Kingdom and thats going to be painful its going to be a very painful next 10 to 15 years you know you just have to relax stop trying to print more stop trying to bailouts bad behavior stop trying to prevent the Business Cycle from happening and maybe our problems. I will escape and well have a flourishing economy again yeah all this finger pointing is a mafia when you think you know back in the sixtys when you think and you wink you think and may always have a lot of fun to get a quick draw both through wink you think. Yeah anyone remember that im a boomer ok boomer got to take a break and when we come back much more coming your way. 54 jets and more than 1300 military personnel are headed to heal some air force base in alaska where is that to say come on ill show you whats the reason for any type of enhanced u. S. Military presence in this area russia. What is it suddenly about the South China Sea that makes it so that it 11000000000 barrels of oil. Take a look at this map who really owns what kind of says no it belongs to us india says no we claim that that belongs to us both of these countries have Nuclear Weapons capabilities there is reason for concern so thats why were going to drill down on the story for you today right here on the news with rick sanchez where you know as we always like to say we do believe by golly its time to do news again. No offense to you no longer a young woman in fact one of the last living survivors of the nazi. Im aware of it. All you like. You can never forget. Was it really like to be in jail because she would never believe what its going to ask. Cause for 3 years of the curve it. Seems so logical for you to make it. When i get out im going to find somebody you know im going to take my son to the next you so he can listen and hopefully bless her. So what weve got to do is identify the threats that we have its crazy. Let it be an arms race. Theory Dramatic Development that only really exists i dont see how it will be successful. To sit down and talk. Welcome back to the kaiser report imax keyser time now to go to preston pish he is over there at the investors pod cast dot com i follow him on twitter hes always got lots of insightful things to say great to have you on preston max im thrilled to be here man stacey thrilled to be here so you are the founder of buffetts books where the slogan is how to invest like Warren Buffett so buffetts been in the news lately so i want to pick your brain on this in the 1st quarter buffett lost 50000000000. 00 at his annual meeting he seemed to blame the fed so your thoughts on these losses its concerns about money printing why he hates bitcoin but lets talk about this so Warren Buffett is interesting spot in his career he did something people were not expecting he dumped a huge position in the Airline Stocks people were expecting him to be more products are a and look for bargains etc what you seem to be a scholar of buffett to some degree can you give us an idea of where he is and whats going on there the big thing thats happened in particularly with the airlines is this code its going to change habits just going to change the behavior in the way that people who think about travel i could only imagine the income statements across the whole u. S. As everyone found out that they didnt have to go travel as much as they used to and that was a major expense on their income statement so i would expect that thats how hes looking at it i know thats how im looking at Airline Stocks is that whatever free cash lou those were kicking off before i think its going to be drastically different moving forward in heat i mean lets face the fact he didnt have big gains on any of those picks that he had so there was no tax Capital Gains friction there so i think he was just looking the offload it its interesting for those who have been observing. Buffett for decades im in that camp about following him since i was a stockbroker starting in the early early 1980 s. So it is interesting hes got this huge cash position 138000000000 or so and he did buy into Airline Stocks as early as february millions of shares and then dumped them a few weeks later and it was in airlines in 1989 u. S. Air he lost money on that it dumped out of that and a valid never ever to buy airlines ever again and he made a few jokes about it and then he got caught up in the airlines again and as far as buffett goes is his style of investing is it still you know they go to style 2 and vast are are is it a bit dated at this point and were kind of entering a different era out what different skill set i think that youre bringing up a really important point because in this debate. At unprecedented levels type world that were in. You see a lot of Value Investors really kind of struggling with the approach and so and where i think its really. Representing itself is in buffetts portfolio in particular because all the stuff that hes been acquiring in the last decade 2 decades have been very capital intensive businesses so like the railroad thing i mean my god the tangible assets on these Balance Sheets are massive and so when youre going through this situation where currencies being the based and if youre using that currency as your unit knew marron order to do economic calculation all the sudden you you start seeing that the way in the style of investing is struggling relative to other businesses that are 1st to receive that cash its being employed straight back into businesses that are achieving these Digital Network effects and then have a substantial amount of intangible assets on their Balance Sheets relative to the things that. Yes investing in so yeah i think youre i think you are seeing some of that play out now that doesnt mean that in the future if we if we transition into a currency that is actually stable and isnt being the beast unprecedented levels maybe that style of investing might come back and be a really beneficial way to to see the world but right now in what weve seen in the past decade it has not been that case at all so on buffett not to focus on the man but on his style of investing i think we get into some bigger points here to your point here isnt Capital Intensive Industries whether its railway airlines mining that might not be the a place to be as we head into a world of social networking in the cloud and things that are intangible and hes got 138000000000 or so on the Balance Sheet and he hates gold and he hates bitcoin and we might be entering a period where a negative Interest Rates are suddenly that cash is a liability and hes boxed himself out of even buying gold d because hes been as orthodoxy has been anti a gold for so long and they say he hates bitcoin has he painted himself into a corner do you think yeah i think he has i think when you Say Something to yourself enough times it starts to become very true to you even on a subconscious level and i think that when you look back it how he has said so many times i mean people have read the. Article that he wrote about if you took all the gold in the world and you could put it in on the infield of a baseball it still wouldnt do anything any he gets into this cash flows analysis of how he looks at gold and subsequently bequeathing and so i think that that has that has set him up to a position where hes going to have to go back on what he has said for all these years in order to navigate what in my opinion and i know what your opinion is kind of in the coming 2 years how i. The timeline t