Report has been right for the past 10 years he dumped many of his banking shares and went long gold miner derek the biggest gold miner in the world so max what do you think about this sea change in his portfolio right well it was obvious that he would have to get into gold gold mining gold bullion at some point he had too much cash he was underperforming the stock market for 15 years he had made an enormous mistake in airlines again for the 2nd time in his career took a huge loss. And you never understood Technology Got in very late and hes got a problem now with all the money that he helped bring into existence by having the government bail him out perpetually not not not not in 2008 was a huge bailout of Warren Buffett and they had a print trillions of dollars he used to base the value of this figure of money the u. S. Dollar and the only protection now we have as a way to preserve wealth is to get into gold so this is the 1st foray into gold and dissipate that within 2 years 20 to 30 percent of the berkshire portfolio will be gold or exposed to gold buffett so burning 90 years you know 90 year birthday on a Spring Chicken anymore think charlie monger is a few years old or so theyve got him out think about preservation of capital they may have tons of mistakes now they decide to salvage what they can of course one thing you can point to this and say is that this is part of perhaps is dispute with the fed because remember he did want to bail out the airlines i in a way that would give him a good deal and a bigger percentage of the big 4 airlines in america but who outbid him that was the u. S. Federal reserve they gave no Strings Attached to their free money to the airlines which is basically never going to have to be paid back so course warren buffet then dumped his airline shares and then down to banking shares in the 2nd quarter and while he was buying gold im buying back at half a 1000000000. 00 with the barrick gold he and i want to point out that colombia a country you know they sold 2 thirds of their gold in june alone so you know they were getting out theres always the money and theres always smart money at the table so if you dont know that the sucker is at the table it could be you. If you were right well you know the fed is out offering buffet right if it were taught fraud how to commit fraud to the central bank you put a lot of money in and buy stocks that go up because youre buying stocks that go up right so he made that game possible and so but the fed figured out wait a minute why are we letting warren take all this fraud money we should get some of those fraud money so now the fed is pumping buffett so is nothing left for buffett to do you know he is entering the game of Precious Metals and Precious Metals is a nonstop sort of manipulated market j. P. Morgan has been fined over the past few years for manipulating the prices gold and silver i think theyre still under criminal indictment actually theyre there theres a comment on that investigation from the department of justice but the biggest oldest going on bank in the world is scotiabank and theyve just been fined 127000000. 00 for manipulating gold prices 3 spoofing this is on top of a 100000000. 00 that they were already fine like one or 2 years ago and then they failed to disclose some information in that settlement so the c. F. T. C. And the department of justice are fining them some more 127000000 but again this is something that kaiser report has had right where the major you know Mainstream Media has wrong where they say its a total Conspiracy Theory to think that prices can be manipulated because for every buyer theres a seller right now thats clear i hope by now that these gold prices in markets all over the world are manipulated using in this case they highlight spoofing you know putting in fake orders to nudge the price up and down it but theres 20. 00 different ways you can manipulate prices and weve talked about it before you know the world is on a Gold Standard has been on the Gold Standard for a 1000 years Central Banks are on a Gold Standard when i settle trades with gold they dont use paper. This idea that we have a fear of money standard is a complete hoax in order for that to be perpetuate. Theyve had to suppress the price of gold manipulating the price of gold somebody banks been fined for this now its such and such a documented historical fact that theyve been implying the price of gold like the gold pulled in 1966 is going to do it for so long and then the market ultimately wins out and now the market saying you know what without the manipulation of the price of gold would be 3000 dollars right now and now we have to go to 3000 and spank you we have to spank you hard really hard and buffett sees the trend and goes i dont want to be spanked i gotta get into gold. And of course you know that part of the resistance to saying that this exists is because a lot of people dont want to say well you know that why would the u. S. Treasury or u. S. Government care the value about the value of the dollar obviously they do they care about the value of all. Currencies but nevertheless you know what theyve been doing is this manipulation by the way its been going on since from 2008 to 2016 this is what scotiabank was fined for even though kaiser reports been covering this nonstop so they were never afraid of being exposed even though we were talking about spoofing and you know what spoofing does is they pretend they put it in order for a massive buyer massive sell mostly usually a massive sell to to panic other investors in the market they think oh my god everybodys about to dump their gold and so they dump their gold fast and the and get a lower price than they what they would have i mean this is a smash and grab but in very sophisticated form because you know if any ordinary joe back down a said this they would be doing you know 102030 years in prison but here they get a fine who knows how much their gains were by the way and well never know because they settled with with the authorities right let me let me in a little secret right there is no such thing as money and there is no inflation and there is no deflation and the only thing there is to think about are Interest Rates and Interest Rate apartheid the value the money is important relation to gold and you can keep Interest Rates near 0 so that if you are a white guy like jake im on wall street your cost of borrowing is 0 if youre a black guy living in the ghetto your cost of borrowing is 2000 percent its called Interest Rate apartheid and its practice right here in america and all over the world ghetto of high Interest Rates if you dont borrowing money to 0 percent of the strike you live in the ghetto and thats the fact ok so if you cant build it then youre going. I have to maybe go to a psychiatrist and adjust your thinking so you can perceive the truth in its fullest straight off speaking of perception and Market Participants is Something Interesting has been happening over the summer and that is tesla as rocketing continuing to rockets up 5 and a half percent since march but the interesting thing is they really went off on a tear when it was a did a stock split which if you know just like the people piled in on the bankrupt Companies Like hertz and Whiting Petroleum even though they were going to lose everything here is like splitting your stock does it add any value to the company but it makes people feel wealthier because they have instead of having 100. 00 and they have 400. 00 shares right now theres a couple of stories there 1st of all tesla is i mean thats worth close to 400000000000. 00 in the main economy and ive been saying that for years now you dont cant find an auto company its not our Technological Company its a mamal that is embraced by the robin traders and other main traders around the world and has a 400000000000. 00 me thats what its worth thats how you value it 2nd of all its funny people are saying oh tussles up on the stock split it is and they dont mention that all that Apple Computers up on stock split news Apple Computer splits its stock for for want and its up by 30 or 40 a 1000000000. 00 much more in dollar terms than tussle was purely on a stock what is this is an old wall street saw stocks go up on stock splits thats been going on for 100 years white house was being pointed out versus apple i dont know but tesla is more importantly a name it exists as a name thats pretty much its value so i also here did mention test lever other than apple because tesla you know grab the headlines and its and it does drive people crazy because you know apple sells a lot of products and tesla doesnt necessarily sell so many products so the fact that they just keep. Going up despite being like such a target unlike my twitter stream i dont see a single mention of apple up on split i see thousands of mentions of tussle up on split so just like a my twitter as a as a analysis of what the perception is out there for some reason people dont say that the there isnt that Something Else going on. So there was also big big news while we were away in the Bitcoin Space and that was this guy dave portnoy from barstool sports bought some big calling after the winkle by went out there to talk him into it and dumped it 2 or 3 days later and that was the end of the story he did say interestingly he did tweet that he is perhaps going to enter back into the Bitcoin Space with half a 1000000 dollars because simply because he likes that means hes a typical trader of all coins a 3rd call and he got sucked in. Into a garbage going and won the pretense of being after the big question and he was suckered into that coin through the window why who have an exchange that trade a lot of junk as does coin based these are on regulated casinos in america should be regulated ask to see those to comply with the law but theyre not for some reason and just like if you can go into a casino to get a free drink and then they take all your money theyve put in a he went into the casino saying oh this is big going and within less than 3 days he was losing money on the casino of terrible all coy things you know now because hes being the poster child of getting wrecked hes like oh wait i need to redeem myself as a me and im going to go back in get wrecked again and saw this wrecking so the wrecking cycle is about to chew up this guy pretty badly i might add that Something Like 97 percent of all investors and decline have made money with whatever price you bought so theyve said hes done. Good job losing money and finally like while we were away we also started a new podcast called orange pill podcast as a long deep dive into all sorts of stories that are really important to as like a mix of Summer Solutions and chis report and our old podcast truth about markets and like its a whole assembly its a camera its a kind mera of fun and shenanigans arent spells there is orange tells us the next thing you take after the red pill and you know if were in entering a new renaissance as we had said in the 1st of our Summer Solutions that this is the place to go to understand what the rebirth will look like and what options we have coming forward unfortunately we dont have it in spanish dubbed in spanish because we know we have a huge audience out there for kaiser report in the Spanish Language it is the biggest best audience in the world i have to say this is the number one reason we do kaiser report is for the Spanish Speaking audience hey we got to take a break when we come back but your coming your way. Seems wrong. Like old rules just dont hold. Any world yet to shape out the attic. And in again trade equals betrayal. When something find themselves worlds apart. Just to look for common ground. In the troubled 19 seventies a group of killers rampage through parts of Northern Ireland that was coordinated loyalist attacks protected only catholic population and tens of thousands were forced to flee their homes and what was striking to put these attacks was that the are you see the Police Actually took part in the attacks so instead of preventing it they were active participants in the burning of full streets in belfast at that take more than a 100 innocent civilians with that as the interview can seniors and we found out more i was surprised about the extent and its occurrence which the collusion was involved in some of those cases that killers would later be named. In the gang i think it went to the very very top i think it is for all the water where all the taste you on the go ahead. Welcome back to the kaiser report imax keyser time now to go to craig happy over there t. F. Our report dot com welcome back krag imax you know this episode airs of kaiser report virtual jackson hole has just ended now were going to talk about your own pow do you expect hell have actually said anything consequential in any way or it ultimately just be about the idea of central bankers have again and again money printer go berzerk and what do you think about these guys over there jackson hole and virtual jackson hole starting up a new punk band called virtual jackson hole in the wannabes. As pretty i mean theyve missed out of their big trip this year they go out there every year you know nay have a little hoedown have their fun it can do that this year and will it be consequential i guess it depends on how we define consequential but i i think the tea leaves have been out there to be read trial balloons have been floated least for the last month gold and silver really took off on july 17th they want chart look at that and also on july 17th in the wee hours the morning an article magically appeared on bloomberg stating that a major policy change was going to be coming from the fed and soon and that policy change was going to be too full when it was going to be a reassessment of how hot the inlet inflation go before they start hiking rates and because they cant rates go up there on the long term theyre also going to combine some form of yield curve control with it that institutionalizes really sharply negative real Interest Rates and i know you and i have talked about this the past help bullish that is for the Precious Metals and that happens and thats why we rallied so sharply late in july and in early august so well see other reports have indicated. This speech is coming and thats what hes going to be talking about and then weve got the next to follow him see meeting in. Guests 3 weeks from now 2 and a half weeks from now so i think all this stuff is pending for september which is if you kick start it lets focus on something here so you might have a it institutionalizes negative Interest Rates ok so lets unpack them a bit because for people to think that they might be confused because the standard objection is to raise rates or to raise inflation to 2 percent or higher right thats the stated objection and in so doing theyre going to create more negative Interest Rates right so explain how that works well negative real or inflation adjusted Interest Rate says the key the key metric here you know the whole nominal rate so i mean a 10 year treasury note is yielded under one percent now since april and it almost looks like someone or somebody has already put any on her control because any time it falls below but 60 basis points are to magically goes back up and if it gets above 75 it goes back down this go through the mathematics here in other words if in fact rates or if in fact inflation is stated a 2 percent breda gets a real rate as you take that numbering subtracted from the nominal rate right and you turn it in turn that bond into a guaranteed loser from purchasing power standpoint and you might think that one but let me just walk through this for a 2nd so they say ok want to increase inflation. And they have a target of inflation thats higher than where it is now that will guarantee absolutely guarantee that theyre going to go down the rabbit hole of more negative rates which is in fact inflation so they are stating a categorical why that theyre trying to create inflation by increasing the rates of inflation that will cause real rates to be absolutely negative so by yield curve of management right thats an attempt to say well we know actually what were saying is false that were going to create inflation by raising rates because it actually creates an in negative Interest Rates so were going to therefore. Expand the remit of the fed from the short term discount window the discount rate were now going to say we control everything we control the 10 year the 20 year to 30 year we control it all and you out there in the world no matter what you see a its false because now we own it all the fed and we control the horizontal and the vertical we control everything right so they then other words are signaling at the tate or ship right now thank you good night thats it yeah more or less we could be in a more centrally planned Global Economy than wed have at that point i mean there are new Market Forces left and i think you nailed it then i dont see any other way out max i mean they dont want to call it modern monetary theory at this point but in all sense thats what it is i mean we are printing dollars in every single nation and every single nations are not dollars but currency and every single Nation Central Bank is monetizing it in here in the u. S. Some its there monetizing basically every single new issuance of debt and so is it modern monetary theor