video podcast where he talks about this so that brings us to today's reality where the u.s. economy is in or a session in recession to find this declining after tax income year over year net of inflation and the u.s. stock market is percentage points from an all time. but u.s. company insiders know what's really going on going on so it's no surprise to me that insiders that u.s. companies have bought the least amount of shares at any one month and also that the ratio of insider selling is now fifty don't want those numbers that's the most those monthly records of the most by insiders sell by and the least amount of insider buying since we started tracking insiders in two thousand and four that insiders are selling at a ratio of fifty to one but on top of that chairman bernanke he signaled this week that the fix is still ahead in the fed will keep buying four billion of existing bonds each and every training day until they stop when there's no sign of stopping

. so far the mass delusion is holding that money that newly created money is worth just as much as preexisting cash right well up until now there's been no way to take advantage of his lunacy and his money printing policies up until the creation of bitcoin so keep printing ben bernanke and bitcoin will go under two hundred five hundred hundred thousand a million dollars a bit going there's plenty of room for it to go to a million dollars for a bit going so as i said the fed is buying eighty five billion dollars in securities to help wall street out at the same time that we spend here in new york we've hit we've seen the sequester happen so eighty five billion dollars in automatic cuts i happen for the schmucks down at the bottom so i want to see and look a little bit further at this discrepancy between the eighty five billion dollars of free money given to wall street and the eighty five billion dollars in services to the poor first look at hong kong because the you know all the financial centers are

really seeing the balance of quantitative easing hong kong not just eighty four million dollar home sales so this is a home in hong kong max a sold for eighty four million dollars this past week and previously sold in two thousand and six for twenty six million dollars almost tripled in the last six years all the people have the same thinking according to one long thing a real affair in hong kong he said that the government cannot do anything about fuel prices as long as there is quantitative easing around the world people think the price and hong kong will always go higher so he was talking about a new tax on hong kong has introduced a fifteen percent on foreign buyers and of course this was sold to the mainland chinese investor they don't care about that fifteen percent tax because they think they're betting on the quantitative easing continuing right well let's talk about on congress state or the real estate in london or the real estate in new york and prices keep going i and i are the governments are becoming more and more bankrupt bernanke to keep flooding claims that can't possibly be met so the government will

be confiscating those homes. the government will be confiscating those homes in new york and the city of london the government will not be confiscating bit coins that's a huge difference between going and having a fake a loser well tied up in a piece of real estate back in the one nine hundred thirty s. of course america under roosevelt confiscated gold well they can't confiscate bitcoin it's it's immune from government stupidity which is what's making it drive even higher so if you have eighty five million dollars home and on kong you should so and buy bitcoin if you want to preserve your wealth otherwise you're just giving the government a lot of your money. so when you speak of the government intervention in the market now we're going to look at the other side of the people who can afford the full price representing of the cash flowing into the market from quantitative easing so if you're at the screen get of the fed quantitative easing you of course can afford an eighty four million dollar home because that's you're getting the cash first

before it spreads down to the peasants now in china they have built all these ghost cities but this headline in particular i want you to look at. this sixty minutes video of china's ghost cities is more surreal than anything we've ever seen so this is from business insider and they say this is so real this empty city this giant vast city and you see lots of pictures here that they're totally empty and this is government policy but how much more surreal is it than the same government policies of quantitative easing and buying all these mortgage backed securities from wall street how much more surreal is it that all of our reconstituted meet the people who can make nuggets that now the pool in the ikea only takes the horsemeat scandals it's just a surreal the same sort of effect the hollowing out of our you know the integrity of our markets but in the integrity of the food supply yeah those go cities are just like casper a fellow you know nobody lives there because they just build under the keynesian

model to just be activist a broken window theory just break all the. and then rebuild the other one is a brick all they want to revoke in lieu of this economy and this is what their theory is what the academics say this with a ph do you believe this is what the neoliberal model suggests but it's all bunch of nonsense that i mentioned how good it feels to be a bitcoin millionaire yes how do you like this rain and snow and this and the opening up to herald the arrival of the toshi. sarver christ christ is back and he's got good point. well let's look at the bottom you know the sort of workers that used to be part of the economy here in america so outside this bubble of new york city where they have the largest of ben bernanke east eighty five billion dollars keeping this economy afloat where construction is booming where the city is booming where record house prices continue outside of this matrix outside of this

bubble we see american c. biggest monthly income drop in twenty years personal income decreased by five hundred five point five billion dollars in january or three point six percent compared to december on a cecily adjusted an annualized basis that's the most dramatic decline since january one thousand nine hundred three this is the cycle be it monetary policy first get rid of all the workers let's get rid of all the savers let's get rid of all the people all the breathers the eaters and just keep all the money for ourselves and trayvon to the each other and bikes are five thousand times less price meanwhile the toshi in the pit going army is taking them on and these people's days are numbered well and the other interesting thing is that the article then goes on to kind of. say here the bright side of things is that if you just take on more debt you'll be fine because i said all of that said ok you don't have a job but consumers are benefiting from

a housing recovery and rising stock prices you know that consumers are taking on more debt than ever the stock market's up on record that housing is up on record that the economy is up on record that the bubble and other side of the dollar against it going to come in the next the dollar's going to crash against gold and silver then the dollar's going to crash against oil so the bubble is is our cereal bubbles are popping but cohen's leading the way it's showing what can happen. it's like a fake currency like the dollar you put up against a real current like fitzroy and now this is the beginning of the year for the bernanke piece of the world who have been out there just talking talking talking nonsense they're on the way out yet only in this sort of ben bernanke the keynesian sort of freak do we see where they say it's better for consumers that your house prices are rising that it's more expensive to buy a house that it's more expensive to buy shares warren buffett the richest man in the world the richest man in america as well he said that what he's been quoted in

the past saying why would i want to buy shares when they're high why would you want to buy expensive shares when you buy them when they're not and here they're trying to tell no one lavish consumers whose income who savings by the way has dropped to two point four percent down from six point four percent in december straight this time of day because of the saying is that a straight at the house prices go up because that can be used as collateral for a loan to go out and buy the issuer of the loans that are backing the house that you're using as collateral are issued by banks whom have no collateral j.p. morgan's balance sheet of ninety three trillion dollars of derivatives versus its tangible marketable assets is negative forty you know ninety trillion dollars they're ninety trillion dollars in negative equity over j.p. morgan they're the people backing the mortgages that supposedly are getting your house price higher so you should be used as collateral to out and buy stuff that you don't need from china who stole your jobs until the bubble pops then they'll

say well we never saw it coming the bubble happened we don't know what was going to happen maybe should put more money all of course there are psychotic there lunatics they've taken over the the levers of the of the machine and they're going out of control only to toshi the cyber crimes with bitcoin is going to save us and he's doing a fantastic job and very much i love being a bit coy millionaire all right and it's great and it and i mention it's great being a bit coy millionaire stacy thanks so much ring on the kaiser report thank you max all right don't go away much for coming in. stay right there at. my juggling job. do hack work and get caught when

lobbyists money and lawmakers are combined together that's where the problem of corruption comes from. i don't know the document's. keep up a smart look. there is also. another well behind that which is how to influence things in twosomes steer clear of provocations don't answer any question. came into the office and found banners hanging around the office and lots of strange faces around someone and said what's what's happening will somebody please tell me what's going on and they said oh we've come to occupy your building. possibly they want to do a confrontation possibly they wanted me to ring up the police and have the police come in through the mount but it didn't seem to be a good idea to learn the european way with brussels business. in the ocracy

it's one person one fault but in brussels business it's one euro one fault. for some people the extreme cold is the chilling threat to life or imminent death it's a cooling if you look you can see that the water in via the rates in my body feels really warm now and this is good for you. they plunge into icy water to make them sell. strong you can't get used to the cold if you will but you can told aerated and you can struggle with. people of snow and ice picks is a frost. having the cold. welcome back to the kaiser report imax keyser time now to turn to charles two smith

of two minds dot com charles to smash welcome back to the kaiser report thank you max all right charles use ref global stock market capitalization rose from eleven trillion to in one thousand nine hundred to sixty five trillion in two thousand and seven while global assets also rose from fifty one trillion to nearly two hundred trillion at the same time what do you what does this data tell us about the global economy actually telling us the central banks and their cohorts in central states have farm created credit as a substitute for wealth so we see these gigantic asset bubbles around the world. that aren't really translating into greater prosperity to the same degree you know like g.d.p. goes up a few percent and in these asset bubbles are quite dribbling right well in there in the case of a few technology executives are making billions of dollars in the case of warren

buffett he's making billions of dollars there the fortune four hundred less that's quoted every day on c n.b.c. the billionaires who are making billions they're doing great. yeah i know absolutely does this thing of blowing asset bubbles is terrific for those people who own the assets which as we know are most of the top one tenth of one percent but the top ten percent of sort of technocrats there they're doing pretty well too because they own a little piece of bad asset bubble so that's why you don't hear too many complaints from the elites in in the state fight fiefdoms and academia and you know the whole conventional economics bureaucracy it talk about asset bubbles but we've had a whole generation now that has no expectation of really pam meaningful part of this economy so they wouldn't call it a bob all that's

a sara lee they would just call it the new normal they don't seem to be fighting this at all they simply accept the fact that they've been cut out of the of the equation and there's no pushback against it why would that why why wouldn't a cyst continue as it has because this generation has pretty much shot themselves and that i think. that it is what we're seeing is the complete failure of conventional economics you know like creating credit in the banks and then we're supposed to borrow and become a debt service and by a lot of junk we don't want or don't really need we may want it because we've seen too many ads. i think it's the complete conventional economics and we have a failure of imagination of people who look looking around they'd like another model but there doesn't seem to be any model because both socialism and capitalism have pursued this. debt as the solution to all of our troubles and so they're both

failing. rights. of being involved in debt ism has replaced both socialism and capitalism we now live in an age of debt is a much an extension of the middle ages or dark ages and replete with the what and keeping with the science of the dark ages. we have the shadow banking system which you also point to in some of your charts is growing pretty strongly tell us about it you know i think oh you mentioned the dark ages and i think it's true we are in the neo feudal global economy we are the vast majority of people were toiling away as debt service to the central banks and their cronies and the shadow banking system is part of this system that has exploded in terms of size it now rivals. entire national issues g.d.p. and it's all happening sort of under the surface it's poorly regulated and in

places like china nobody really even knows how big the shadow banking system is right and you mentioned that you believe that in this nail feudal neo colonial era of financialization and debt and. we have a great unwinding yet to take place but i guess the two options would be either some kind of grassroots revolution like we saw during the french revolution perhaps or going back even further we had the black plague in europe which wiped out half the population and finally gave some purchasing power to the survivors so either we have a plague or a revolution which you think is more probable. i'd like to see a plague wipe out the financialization if you could only wipe out all the phantom assets and the phantom money then at least we could start with. start from a base where we knew what we actually had and then we could look at distributing

the. the resources of the will a little more or even we rather than then increasing the inequality in the world with financialization that would be one place to start just just lower the cost of living make wiser choices with the resources and assets we do have instead of malinvestment and increasing you quality yeah i'd like to see a plague hit the bankers as well but we don't have that instead we have jamie diamond making comments recently basically unzipped as fly and wave is waiting for the crowd sidelines bigger than yours and the crowd applauded wildly and even now we have the tools to decimate j.p. morgan by buying sell for their remarkably short sell for we could we could completely obliterate that terrorists but people are they love jayme they love is winning waving retain they love is what everything that jamie represents so i don't think the the tools of the plague are there to wipe out the terrorist bank stars

but the people same to enjoy their golden shower more now into this mix comes obamacare a major gift to the mega insurance corporations how does this fit into this financialization end game scenario. i think that obamacare is like the perfection of crony capitalism that's been sold as being something wonderful for the for the people and by the by the profession of crony capitalism i mean that it insanely expensive care provided by cartels. have totally opaque pricing and then are in cahoots basically with this central state that supposedly regulates them they're charging you know seventy thousand dollars for a few tests and the basically the debt service and taxpayers are having to pay these cartels these insane fees that are like mouli ten to one hundred times beyond what

they would what they could cost in another nation without. crony capitalist cartels why are liberals like ariane huffington so brain dead on this issue. i think. they're fixated on some sort of national health care system like say for instance canada's or france's. and they think that obamacare is actually some version of that and they have been hoodwinked by the mainstream media in all those people profiting from obamacare you know talk about the bankers i mean how much do these hospital chain and insurers c.e.o.'s make don't they make like i guess it's only fifty million a year instead of five hundred million so i guess we should feel fortunate time magazine just ran a cover story detailing over thirty pages of hospital executives and health care professionals repeatedly financially raping to near death the average health care

consumer in america but again the average american seems to enjoy that sort of thing what about. what could possibly go wrong charles shoesmith what the so called housing recovery underway twenty thirteen. i think housing is symptomatic sort of like obamacare that. it's it's like this powers that be you know the central state in the central bank they have decided to reflate housing to try to get the debt service to feel wealthier so they can take on more debt and buy more junk they don't need and so there's just literally pulled out all the stops i mean the feds print trillions it's five trillions of dollars of mortgages it's low interest rates to basically lessen inflation to try to get people to buy a house and become indebted for the rest of their lives to the banks and so there's sort of pushing on a string though that there's just not enough people with enough income in the

younger generations to buy all these houses and so what makes sense for a young person is to share a house or into a co-op housing or buy a house with five other people that this is what makes sense and were the cost of their housing from one hundred percent of deaths or some to like you know twenty percent and so this of course would pop the hood financialization bubble because once people stop. buying houses for these insane prices and indenting themselves for the rest of their lives then then. the bubble will collapse and they will feel they won't feel richer from phantom assets they'll feel wealthier because they actually have their own cash. i know you've done a lot of work looking at the japanese economy and spent some time living in japan certainly a lot going on there now they have basically fired the central banker and brought in a guy who is going to answer to the president with a mandate to print money what is going on there. i think. as this

global competition is heating up you know back when the housing bubble was expanding globally and china was booming in the two thousand there was enough sort of that the glue pot i was was increasing at such a rate that every nation could get a nice chunk of the market and profits and that's why you see corporate profits were soaring everywhere japan the u.s. china you know europe you name it and so now the glue is contract and because the this whole idea of substituting debt for for wealth this is failing in search of pan is now at and t. in the game about they're trying to recapture their global market by depreciating the yen and of course this is triggering. great unease because everyone else is going wait a minute you know the price shrinking we've got to we've got to do something that's save our share of the market so they're going to try to depreciate their currency but as we know everybody can't appreciate their currencies together somebody has to

be left holding the bag with a stronger currency and that maybe they that maybe the united states. because nothing's better than taking stuff like oil from other people in there handing him weight fake money you know people money in exchange and that's a terrific trade so the u.s. dollar will probably rise as everybody else tries to bigger neighbor and but that's that's obviously a self destructive process so serious reface up over to the united kingdom for a moment they're talking about going to negative interest rates which would mean that the the banks are now going to charge customers a percentage to hold their cash so instead of getting a zero percent interest on the money you have in the bank you're going to get a negative rate of money you have at the bank this will be two from the central banks of the commercial banks initially but then the commercial banks will probably extend this offer to their customers and say you have to pay us an annual fee to keep your money at the bank so savers not dealing not only with zero percent

interest rates but they're being taxed effectively one or two percent every year just for the privilege of giving them money to the banks how is this going to work . max it's an incredible i think this the banks have learned from the fed and the other central banks who have been playing the same scam that if you buy tracery bond from you know in the u.s. you're get like a tenth of one percent interest a short term treasury and of course inflation is two and a half percent officially so you're basically paying the tracery you know two point four percent for the privilege of owning this is tracery bill and so maybe the banks are simply copying the central banks because hey if people are willing to pay to an after cent for a sovereign bond why not to have two and a half percent for a savings account and it's of course it's just the same sort of. that is the basis of financialization everything is a is

a constant scam we are human sums of money are being concentrated into like at the top of the pyramid right you could call it a scam or i could just call it rent seeking which. is pat let us all three laws against that kind of thing anyway trousers spread throughout a time thanks for being on the kaiser report thank you so much max all right that's going to do it for this edition of the kaiser if you are with a max kaiser and stacy herbert i want to thank my guest charles hugh smith of two minds dot com if you are some e-mail please do so have ties to reported r t t v dot are you thanks guys i'm. been living this way since the seventeenth century. strict. communities.

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