Hi there this is the kaiser report im max kaiser lots going on social media investing types stacey oh yeah of course its. A fortnight king of the day traders on social media and he is asking hey even months do something of course harkens back to the 2008 financial crisis 20082009 when jim cramer on the media of that day which was the Financial News cable news fright that was the big place he went for Financial News and he was demanding that the fed do something to bail out because all his friends of bear stearns were losing all their money losing all their wealth losing their jobs they have to do something this is no time to be an academic get a bell out well here day fortnight went long very very long on tesla down 30 percent and just a week right well you know weve been talking about tesla for you know a number wix a few months because it is a phenomenon and the point ive been making from day one is that its a me its a mean that has a market valuation at one point over 400000000000. 00 and it taps into people who trade means and these are generations e. A. A. And the millennial is on the robin of apps and other platforms and means have no fundamental value theres Nothing Better its just its a murmur ation like starlings in the sky they congregate and then they disperse and people congregate around this murmur ation of a stock called tesla and now theyre dispersing and theres no fundamental value to be that would suggest its worth more than you know 80. Percent below its current price or market cap and to show you how easy it is to create a new meaning to take the place of the tesla me nickel nicola. They just did a deal ford and their stock went up by 50 percent based on their mean of electric cars so. You know i mean i dont know what to tell you. This was predictable if all value derives from human consciousness and human consciousness is now so you know attention Deficit Disorder sort of Television ShortAttention Span jumping from idea to idea multitasking and multiprocessor is hundreds of browsers open yes im talking about myself and you know your Attention Span only has a few moment your consciousness of any single me more idea is very limited for a few moments sometimes 3 seconds so this is subject to that so day fortnight i was huge on social media for a few weeks and now hes gone hes over peak does that mean as. Well hero he was like the day of kramer for the jim beam or the jim kramer you know with those green or and you know i mean i mean this is jim cramer had a plastic hammer as well during his in told us you know. Jon stewart who was big on cable to see was a comedian who was on t. V. For a while he ripped james cramer apart in an interview and exposed him as a because he admits he likes to manipulate prices james kramer any has a tape of him saying this and jon stewart replated for him and he felt quite embarrassed but so this is just a repeat of that scene and so who will be the new dave portlands and somebody is in the wings theyll be the new dave portnoy i might add in response to his 3 f on this one tesla announces 5000000000. 00 at the market stock sale. So certainly iran last did a good job as the c. E. O. Dumping on chumps on robin hood out following day fortnight so they dumped right there and the stock collapse plus the market composition i believe triggered a vesting schedule for him thats worth hundreds of billions of dollars alternately. Perhaps so hes and the lot of innuendo and allegations of manipulation in the Options Market in terms of the stock price so you know youre dealing with some pretty sophisticated folks out there and particularly the options traders the know theyve lost billions of dollars theyre trying to discourage people from doing that they did it in a way yeah we cover the Options Market the last episode and they apparently did have some play in the whole tesla thing and it could have been solved bank it could have been all these robin hood traders because Retail Investors were the largest options traders in the world but you know back in the real economy one of the smart guys in the room always has allegedly been dr copper so you know were going to look at this weird copper story out of china and theres a few explanations for it possibly wow check out chinas copper binge over 2000000 tons imported change june to august never seen the scale of by before and you can see its way off the chart this is going back well past 2001 and this chart and there copper consumption has been climbing relentlessly over the past 20 years. There was a huge gap in january and february during the Coronavirus Crisis where theres no imports at all of copper so it could just be making up for that mark malloch over there at incremental he he says that this is basically them shorting the dollar it could be them getting ready for inflation and many of the comments were of course saying suggesting that this could be them preparing for war as well but copper is a strategic metal and all those 3 things could be implied and so to ignore this would be at your peril because this is an important. Feature and they say that the underlying implications for inflation we see that across the board for assets are moving in price and with the exception of oil but that is a very political politicized the potential for set up for a conflict is real because you know nobody outlawed conflict and thats been going on for millions of years the men tend to get in the conflicts and periods of peace are somewhat rare and the i. D. F. Shorting the dollar by hoarding copper is also very real because the copper the dollars were period of dollars ations so if thats the case then youve got to load up on some of these things now and so that should be a very important warning signal terms of the argument for inflation of course the supply chain those weve known for the past few months 67 months of this pandemic have been knocked offline so that is causing inflation in china and food prices and you know that thats one of the most important inflations to look at this is a headline in july chinese food prices rose by 13 percent year over year amidst trade wars with the u. S. Strongly and swine flu beijing is worried about Food Security she orders food saving drive School Principal shame pupils by demonstrative li consuming food leftovers and this is a chinese teacher is finished. Leftovers to heed shes antiflu do waste call it kind of feels like it should be a good analogy for whats going on in the stock markets and dave portnoy and his followers and the pleading for them to like somebody has to eat these losses right this is the fed policy jim cramer you know one day a day for tonight well go to jim cramer and not not to jim cramer but to jay powerful plead with a palace eat his unused luncheon eat lunch right now hes still in the old school of like capitalism you appeal to the c. E. O. s like do something make your stock price go up he realized that so i must is not where the power lies as with the the fed and youve got to have the fed start eating your own in bags of stocks right so youve got it get see that woman eating that food the principle we have to get a pal to eat Dave Courtneys bag of tesla shares yeah exactly at their 40th on the learning curve you know he hasnt reached the the the head of the state get in terms of the fed he will figure that out but you never are even a year ago 2 enormous problems in the world war over tourism in all major cities and raging obesity everywhere in the world so what Mother Nature do she gave us this cold and virus and theres not a tourism problem anymore in these major cities as a matter of fact americas those in 3000000000. 00 a week in lost tourist dollars and the looks like based on this photo the obesity problem is going to be addressed as well yeah ok but theres a supply issue thats going to continue into this the 2nd you know weve if theres a 2nd wave of this pandemic we have new fiscal policies coming out new fiscal stimulus so who knows how many more chileans are going to be added to our budget deficit which is going to cause more inflation we know that the likes of day fortnight are going to send his army of robin hood apparatus to jay powell and to manage it. I dont hear that because as we have discovered that money printing cant fix supply chains exactly right and so the food is is beholden to the supply chain to a large degree and so no matter how much they print those twinkies might not get into the lunch boxes of folks and therefore they may have a cure for obesity you know im just looking at history and what happened in the Great Depression and if this is like another Great Depression even though the fed thinks they can print to the way you know we saw the same thing with supply chains and disorder in the food market and prices back in the 1930 s. During the Great Depression we saw people leave berlin and germany for example and go attack farmers because they blamed them for the hyperinflation of food prices that it was the farmers fault here is the same situation but what im saying is at the end of the day portnoys going to appeal to jay powell to bail out his his used lunch jay powell will do it because he has to because of the publics perception so hes got to maintain perception for the bag holders that therell be a fed put the fed will buy their bags down theyll do that so theres a way to do it is youve got a classified as a strategically Important Institution for the American Economy thats like all the banks got under that category yes if last a good bench a pile the tesla is a strategically Important Financial Institution then jay powell will be buying tussle stock and bailout day for me but doesnt care hes already bailed out hes already sold all his shares hes got billions and billions of dollars hes got tens of billions of dollars when he had access to the media and he said go on joe rogan you need to go and a party show so therefore he would have to classify tesla as a strategic underlying and valuable asset to get the bailout for dave portnoy and to help his being remember its all about me management well dave portnoy is the jim cramer of this era perhaps we dont know it like. Hes buying also hes been pumping false sorts of stocks and he stocks also some random names so we dont know what what sort of industries he could possibly push to be Strategic Industries and get a bailout from the fed but i think the ballots are coming i think were going to see the equivalent of this this is my last point here with this medium and this analogy that were going to have these principals eating your used lunch and order to that thats what the fiscal stimulus says thats what the fed quantitative easing is its just as absurd as this and desperate theres a sense that theres no real plan theyve even though its a planned economy like they want to have a planned economy and a planned Financial System a plan to markets that are always going up but they dont really have a plan for when that plan goes wrong remember never confuse brains with a bull market. All right were going to take a break and when we come back much more common and i think you know way. In this president ial election cycle both democrats and republicans claim to be tough on china but does that actually meet what does the American Public really know about the china of the day on this edition of the program the attempt to separate this. Again blown listen we or 2 or 3. Probably have a. Chance to be acceptable people to ration before they were rolled out you know you know society because. There is a real risk undermining faith in the fractionation system as a whole and i think governments are under such pressure to introduce a bank she practically good. Because of the willingness to consult and to ensure acceptability somehow to new growth. Back to the kaiser report imax guys are time now to go to david the want of a bit wiser and best friends david welcome hello max its a pleasure to be here big fan of the show well where a big fan of yours may fall you on various social media got some great things are writing about you write that metallic money did not survive the age of globalization and nation states because it did not scale well so lab rate on the set of scalability how does that relate if it all to what were saying at the moment in the global fear out currency grid davids thats an awesome question and a pretty broad topic ill try to get this custis in brief but i think its always one thing i always like to think about why the Gold Standard failed and i actually how the Gold Standard say ok because i think sometimes we like to think that after 97 we 71 with 11 and c s currency world and that before that it was just the Gold Standard but i taste at the realities that were a number of different Gold Standards that were implemented over the years and some are just as the add as currency but usually when those sound money and it was the asked salt about the Gold Standard they usually refer to this state called the classical Gold Standard which was basically oration a dead end mids lee 1800. 00 and thats basically lasted until world war one after that it has been only downhill for gold we went to a Gold Exchange standard it at least in my view 1971 was just a natural consequence. Of that whole process but i take the point i was trying to make. That taxed is that gold has these amazing monetary corrector a stakes that we are all aware os whats regards to fungibility divisibility and scarcity but one thing that gold severely lacks is the ability to transfer and i believe that had this started to become an issue over time especially as commerce the came more and more globalized so then we started to see people he said ill say exchanging. Gold bullion they started to use gold receipts and from then on. The shia takeover off the system was was a lot easier to do so i think that was a very very short and reason why the Gold Standard failed and this is exactly where i think one of the points 10 x. Prove mints are right we all know that basic point is extremely easy to transfer if you can transfer it over to enter nat without introducing any 3rd party risk in order for us to do that we with node we have to introduce a lot Else Congress party rest that over time leads to centralisation off the Monetary Base so you have a lot of gold stored in and say no place which and thats why it doesnt have to be best way and i believe this is why not the big big big losses that the white house over go simply put gold is really having and as a result you have to store it in places and that tends toward centralization is what you just said and when you have a big store of gold centralised then you need people to protect it and ive got a military on hand to protect her golden now in the military. Not only have you got a family currency thats probably a fraction of the gold circulating and that causes problems when ive got a bunch of soldiers with guns hanging around and the days off you know theyre out there are doing stuff that they shouldnt do and anyway you get to pick coin when its essentially solve this problem you save got a 10 x. Advantage over a gold to 10 x. Advantage thats a big advantage david tell us more well i think i was there for a basically 2 it is at least an order of magnitude better rate i do think sad bitter and dont get me wrong i love go actually i say go does great i just they thout big winners better. And in a number off way and in some ways that point as mentally better than those but i do think that on this transports ability requirements are on the stress or ability aspect i do think that were talking about orders of magnitude off you prove meant as as you just said how you can transfer between extreme easily while i go there is the smoky it has all these problems that you have mentioned i take away when we look at history the golds didnt die suddenly rake goes the gold Monetary Base is starting to become more and more concentrated over time like from gold coins to gold and then to go to bars and gold bars soared in Central Banks this whole process off monetary centralisation is walk makes gold relatively fragile to a takeover orts to be caught by governments in the future and i think basically has see an order of magnitude at least advantage on that side while the last terrorist acts in hall meeting form a bank of england had mark carney. One u. S. Dollar no longer fit to function as a global unit of account do you agree and are we about to see a Bretton Woods to point out what does a post dollar monetary and trade system look like david wow thats thats a big question i think my heel on that i not i thank to be maybe a bit simpler on that side i think for now i dont know whats going to happen i do think that the dollar will be the leading currency in the world for a long time but one thing is for sure in my view were shifting from a unit of polar to a low tipler currency system right so right now as it probably doesnt make a lot of sense and china advice and energy from russia they have to do this transaction on u. S. Dollars and ultimately settled as at the Federal Reserve off new york of course both parties are not interested in doing that so they have been doing their transactions and not their currencies and actually get they a large part of off that. Sort of transactions are or are not happening to us all as a new war so i definitely believe that there is this change from like having only the dollar to having most of hope will settlement naturally exclude one way when i my bet is is of course on but point over time but just simply the fact that we are starting to see nice competing platforms i thanks nat enough for people to start paying attention this is the sort of stuff that br