Max Keiser - GET READY! IT'S Going To Get WORSE

Max Keiser - GET READY! IT'S Going To Get WORSE

In this video, Max Keiser and Stacy Herbert discuss the effects of inflation on American corporations. They also touched on the macroeconomic conditions, including the US GDP, unemployment, and the politicization of the Federal Reserve Bank (Fed).

According to a report from the Wall Street Journal, TSMC has slowly become the world's 11th most valuable company with a market cap of about $550 billion. The company reported 17.6 billion in profits last year on revenue hard-driving 45.5 billion. Also, TSMC manufactures around 92% of the world's most sophisticated chips, thereby creating a monopoly position.

Keiser terms microchips as the Steel of the 21st century because steel has the primary component needed to build the modern infrastructure, the railway, and tall buildings.

Keiser refers to Jeff Booth's book titled, "The Price of Tomorrow" which explains how the price of technology is dropping faster than how money is printed and the fact that deflation is a permanent feature of the economy.

He adds that the excessive printing of money will have devastating effects on microchips because real inflation is rising rapidly but the central bank is unwilling to accept this because raising interest rates will put their friends on Wall Street out of business. Keiser claims that the Fed will continue the propaganda campaign by denying inflation.

Stacy notes that politicians have abdicated their roles in the growth of the economy. She shows a chart which states that in 1990, 37% of chips were made in the US as against the 12% at present. So, the politicians are starting to notice the discrepancy in the supply chain disruptions and the chaos caused across all sectors.

Stacy observes that the Wall Street Journal points out that analysts aren't confident of a more diversified semiconductor supply chain anytime soon. They attributed this to TSMC's hard driving culture and deep pockets. The industry has become so complex that once a producer falls behind, it becomes tough to catch up.

A Wall Street Journal article reports that over the past years, TSMC has increased its R&D spending which has caused its market cap to become the biggest in the semiconductor industry. Samsung and Intel have experienced a drastic decline.
Stacy says that the US manufacturers use the opportunity of China deflation to move the export of US jobs and hollow out the remnants of technology, Innovation, and production in the US.

Stacy also accuses US corporations of lagging behind in R&D because shareholders won't reward them for that.

Keiser states that every major American company has done a deal debt for equity, increasing their debt profile excessively, making America the country with the most indebted corporations in the world. He terms this act as a theft, citing Intel as a typical example.

Stacy concludes with research from Eric Peters' article from Zerohedge which notes that historically, whenever the Fed steps in to intervene in the economy, there is a high likelihood of a crash thereafter.


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