i am x. kaiser welcome to the kaiser report in ireland this past weekend a group of protesters gathered outside the dell with a simple message don't sell us out by forcing us to work abroad in order to achieve the allegedly falling unemployment numbers which have to impress the troika occupiers the irish government has been sending letters to the young unemployed citizens of ireland suggesting that they leave town go overseas scat scram pound sand get out of our statistical sites get down beat get out of here our choice get don't want to see your poor hungry face in our national accounts no mo. oh

bugger because we've traded you for some ghost ships of debt from and the collateral call has come in so generation emigration get the freaked out of here you know we don't want you no mo stacy is this true max we were in ireland over the weekend of course we did see the representatives of the go ship of death fraud represented by the troika congratulating ireland for cutting unemployment low and behold though you look down below and you see that the young unemployed have been receiving letters from the government suggesting you move overseas he says get at it down well there's statistics and then there's economics and unfortunately the troika because they're guided by academic theory and technocrats on the inside they look at statistics but they don't look at the actual economy on the ground they can't see the forest for the trees they look only at their little screens and they

look at their part charts and they look at their algorithmic trading mechanisms but they don't actually look outside the window and see that people are suffering and that they could benefit from some real economics which would put some premium on a youth that was having an active participation in the economy generating organic growth they don't see that because they're cyborgs because they're half machine because they're they're built in a petri dish somewhere they're not even human and they're trying to advise big lot of conduct of economy is disgusting well it's also the first example you see here of this belief that we don't need human is we don't need real capital we don't need real wealth we just need to go pots and financial derivatives and that will be that's our economy we don't need the human beings we're not leaving assembly to be held and dublin so the young people's assembly met in dublin and advocating on behalf of young people to formulate an action plan to combat youth unemployment force them and gratian a cuts to youth services which amount vixen notices. for

a generation so here's one of their posters by the way max this is the world they've created for us don't let them get away with it as you see they left the get out so i think they need a better education system there to the kids. who didn't spill our. poor kids they bring up a good point which you also showed before as an increasingly more people are not needed to make the economy go because you just print money you just print money at the e.c.b. according to some just formula and you get some growth but the actual new quammen for people working is diminishing again just like saudi arabia they don't need workers they just need to pump oil few specialists inside and the wealth and income gap is just enormous so you have a totally disenfranchised youth population that's increasingly becoming agitated and this is happening in europe now and in the u.k. and around the world for the same reason don't work we just print money go to hell this is what the youth told them there that they will not be evicted from their own

country and you know this brings up the comics festival where you spoke and you had this bizarre situation of these academics and actual central bankers people who were economists for the central bank of ireland the same guy also worked for the u.s. federal reserve and he's now a monetary advisor to the european parliament and there was a big bit of a showdown you might say here's the headline max what's the difference between a comedian and an economist kalka nomics sometimes like a financial pancho whenever they gleefully villainess us pundit max kaiser takes the stage i get an urge to shout he's behind you so apparently you had a bit of a showdown with karl whalen an economist for the central banks around the world who was saying that basically a lot of these economists were suggesting that the problem with ireland is they need to expand credit credit so cheap right now why don't they just expand and there are common we will recover day every single problem to them requires an

expansion of debt and because. the business of helping banks create debt so yeah we had a big showdown at the nomics i was on a panel with how again who was brilliant writer at the telegraph on the sunday of always reading his papers columns every week and then suddenly we looked across the column the the diaster gather and we kind of communicated like let's take these suckers down so we came a bloodbath and these academics were like on the ground tending i've got plucky the rubber chicken made of parents and even he had more to say credible then the professional economists the pal you're discussing you were talking about statistics being pulled out of the bottom of central bankers and these guys including karl whalen was suggesting that they would never lie they're professionals they wouldn't lie about statistics c.p.i. is c.p.i. inflation is inflation we wouldn't lie about the problems of jumping in france like it was a problem with the damage like a car away on a technocrat is that they keep these cars in silos they give

a little piece of the puzzle to work on to justify that little piece of the puzzle they never see the big picture so so it is like a professional money manager or somebody who's in the journalism you see the bigger picture and you see the results of having little siloed men little men in their silos doing little jobs coming up with little algorithmic formulas when they add all that up is the banality of evil is it you hand out with kind of a financial tell terry ism generated by little men with their little calculators in silos with no light from the sun well exactly somebody at the troika was focusing on unemployment numbers in ireland and the number of looks better better not counting the fact that all the youth the future possible wealth creators for ireland have fled the country sometimes at the behest of their own government so this article here about the calc anomic festival points out humility soon evaporates as every one vice to demonstrate how wrong other economists are you see the professor karl whalen and dirigible kosky tried discussing the nuances of

economic forecasting. riser responds by taking a rubber chicken out of a bag this is not a metaphor he takes an actual rubber chicken out of a bag hey i'm a government official my name is plucky do what i say he says in a high pitched rubber chicken voice well rubber chicken voice max oh i'm not going to speak for plucky. but plucky is a better economist than just about anyone out that festival but it makes an important point and that these economists will typically come onto an irish stage and tell people that have been abused by debt that debt doesn't matter this is like jim jones saying drink the kool aid don't don't look at the law on the cyanide because we're going to a better place valhalla we're debt doesn't matter it's on hill bought comit just drink the sign and will go to a better place they're cool just they're dead cultists they're dangerous now and of course they do mention as you're saying here you have the world of the academics

and then you here you have the real world with a younger being told to get the hell out of our country and they say that audience member shouts support for kaiser and lambast poor wail and answer the question you're wrong they yell because of course they see the real world beyond that statistics and the academic saying just expend credit it's that simple to fix the situation when plucky used to look like karl whalen but after years and years of being wrong he now looks like plucky you see it i'm saying like there's dozens if you can just go throughout your entire life by saying bromides and anna done statements referring to nothing in the hopes of concocting mating something without first understanding that you cannot create truth from that which is pulled from one shrink thing. otherwise you end up like plucky plucky learned his lesson. well now i want to go back to a headline this is from one thousand nine hundred sixty four and it's an a.p. business he said at first somebody linked to it on zero heads and i thought it was

just like an onion piece of one thousand nine hundred sixty. but it appears to be true because there was really a business analyst at the a.p. called sam dawson high cost of living not inflation say economists the cost of living continues to rise they were noting but the government economists assure us that this is not inflation this can be confusing to americans who look upon inflation in terms of consumer prices with the cost of goods and services go up they call it inflation or put it the other way around when the dollar buys less the last year to them that's inflation government economists are saying with considerable evidence to back them up that times are different now and so are the terms to describe conditions good good call because over the past decades and really after the old post-war period. economists writing in mainstream media outlets try to convince the public that what they see is not true don't believe your eyes listen to what we have to say on the pages of these editorials describing

what the truth is even though people in their gut and in their heart know that they're being alive to the difference today is you've got other media outlets you've got other social media outlets that are confirming what people know in our hearts that are being flipped up the shrinks trying hard and they want recourse they want answers importantly these are government economists they were working for the government and why they were saying that debt is now a really good thing and sometimes it is but here they're saying specific situation they're saying all of this also is tied into the new thinking on federal financing the federal debt will rise and the annual interest on it but the general prosperity makes up for it and we're this is what we heard all around the world alan greenspan said it the politicians and bankers here the same thing in ireland the celtic tiger remember it was like sure our debt is growing astronomically but so are our house prices so we're all getting wealthier

everything's going to be fine goes back to what we've been talking about. on this show which is the interest rate apartheid where you've got one side of the apartheid wall able to speak glowingly of the benefits of having asset price bubbles due to cheap rates that only they can qualify for many people on the other side of the apartheid wall who are living in a slum in a ghetto in the mud because rates for them are sixteen twenty twenty five percent or in the case of payday loan or five thousand percent so for them of course it looks great but they refused to take in to the big picture so once again every decade remember after world war two america debt to g.d.p. was enormously high but they had set the stage for world domination because all their competitors were annihilated and they transformed from a war economy to a manufacturing economy today america's debt is higher than it was after world war two except what they've done is they've decimated their old economy and enfranchise

the rest of the world is to reverse the world war two americas aside to say we don't like the idea of winning a war let's lose a world war and that's where we are today enormous debt no manufacturing capacity and they've emboldened their competitors and now they're ready to lose what's now the currency war world war three it's pluckiest world we just live in it well max porkies with peter schiff right outside waiting to come in i figured all right states over the second half a whole lot more. side . i think corporation trying to. do and trying on all about my. family pick for competition right in the last. week right. here just to pledge. today

by. cop. welcome back to the kaiser report imax kaiser time now to turn to our investment advisor radio show host and you tube superstar peter sifton if welcome to the kaiser report thanks for having me on macs all right fantastic so peter schiff of the many right calls you've made very publicly one of the recent ones was this idea

that the fed would not taper the idea that the fed was thinking about cutting back on their monthly quantitative easing from eighty five billion a month but in fact they did not taper and so tell us about what's going on there while they they ever intended to taper i think they were waiting for the right time to come up with excuses as to why they weren't going to do it but they still have to maintain the false pretense that they're going to do it because what they can't tell the markets is the honest truth which is that we don't have a genuine recovery it's phony it's one hundred percent dependent on quantitative easing and if they remove those monetary supports even just a little bit the whole economy will implode right and this is in fact the setting for prospering janet yellen is coming in to replace ben bernanke and i believe you and others think that they could expand that program from eighty five billion dollars a month well they will expand it in fact when the fed first started talking about tapering i said no the next move is going to be to increase not diminish q.e.

that task is going to be left to janet yellen she is going to come up with some reason maybe she'll say inflation isn't high enough we need more inflation the job picture is still too bleak but the problem is we're not going to grow the economy we're not going to create jobs by creating inflation by debasing our money it might make the stock market go up it might make the real estate market go up and so we can delude ourselves into thinking that we actually are growing the economy but we're just growing the bubbles and growing the debt and because the economy will never recover because the fed won't let it restructure and then the unemployment picture is going to continue to get worse which means we're going to get more and more q.e. and they're going to keep on increasing the dose in till we overdose because we have a currency crisis and then it's over. the structure of this it looks like a ponzi scheme in a lot of ways in other words it is ok it's in the pond this game is that they've got a lot of banks a lot of bad debts they're not mark to market these debts are marked theory or mark

to what they say that these bonds are orthe but they if you try to sum on the open market they would get a lot less than what they say they're worth so this is like a huge ponzi scheme but the u.s. is not the only one involved in this ponzi scheme because they had to make a bank of england the new governor mark carney is speaking from the same playbook he's saying you know we've got to basically keep rates low they're artificially low he wants to take bank debts which are four hundred percent of g.d.p. he's publicly said he wants to take them to nine hundred percent of g.d.p. and take lower rates the e.c.b. the european central bank has cut their rate from a half percent to a quarter percent so this is the same story around the world it's a ponzi scheme built out of ponzi scheme you think about ponzi schemes as they have to keep on growing and if they don't grow they implode because you keep you need bigger supply of new investors to cash out the old investors i mean look at the u.s. treasury bond market we have a seventeen trillion dollar national debt although you know that's just a tip of the iceberg we actually have one hundred trillion plus in total debt

seventeen trillion is just where there are treasury bonds outstanding but the u.s. government has lots of obligations beyond the treasury debt but if you just focus on that where does the u.s. government get the money to retire all the maturing bonds every year trillions of dollars worth of treasuries mature the government doesn't have that money it relies on new buyers to cash out the old buyers and in many cases it's the same holders the people that hold the debt just roll it over so we never have to pay it back but nobody wants to acknowledge the simple truth that repayment is impossible all we can do is borrow more money to pay off the maturing debt but then the debt stack keeps getting bigger and bigger and bigger because of the compound interest and because the guy. it borrows more money every single year right you mentioned a moment ago about reform there due to delaying deformed and not reforming so reform can take two basic avenues here there's going to be either government reform

a form of government some way or a form of banks talk a little bit about this idea because some i think are curious about the split because there's one camp that says just go after the banks and there's another camp i think you would be in that camp saying go after the government well part of the government is money and we need monetary reform and when we have monetary reform then we'll take care of the meaningless monetary reform well meaning that money has to be real it has to be legitimate and savings have to come into existence based on under consumption right now we're we're the investment is financed is from central bank printing money but that's not legitimate what you need is to have resources that are not consumed that are saved better then available to finance legitimate capital investment so you two ideas will say the banks and government they have recourse is a lot going along those lines a they could go to a sound money policies they could go saying no we're going to go back we're going to incorporate gold maybe not a pure gold standard but a partial gold standard with some reference to gold some reference to hard money or

b we're going to take the tools we have a tool box now in over at the fed and the months our policies are going to raise rates we're going to start raising rates to give some value to the dollar so those would be the two avenues right that would that the government would pursue that you would look at as being bringing some restoring some balance to the to the system correct yes and we sure any of it would be an improvement to the pure fee out system we have now so if we can't go back to a pure nineteenth century style gold standard just going back to something debt imposes monetary discipline so you just can't create money out of thin air so you have a real rate of interest and then what that will do is a lot of the banks will fail under that scenario because they need this cheap money to prop them up the whole finance. well sector will shrink but what that will do is it will on relief and industrial sector because we're starving main street for capital while we're propping up wall street and so if we have legitimate savings

and legitimate underconsumption and you know you have a realistic market price for money then we're going to have the type of capital investment that actually produces more consumer goods and creates jobs ok what about this what about banks who are constantly caught the big banks we know the names they're conflict caught in gauged and malfeasance accounting fraud misselling what if instead of just going after civil fines we started applying penalties railed going after them in criminal penalties if bankers are prosecuted instead of just saying well the government's allowing them to game the system they're giving them a lot of cheap money and the government doesn't prosecute them so we can't they're blameless because again i don't think the government wants to discourage this activity they just want their cut that's all they want to keep it all going so they want to slap them on the wrist when you look at some of the fines that these banks are paying yes they're big but in comparison to all the profits that they made gaming the system is very small so they just they just have to cut in the

government on what they're able to steal illnesses based on monetary policy is their business model their yes yeah they know they're only going to be fined up a dollar for every time they steal yeah so why not do it now you're in the investment business i mean euro pacific capital very successful business in the united states and these are your colleagues get gold out of my colleagues there they are a colleague of mine there you know the action now but i mean that they have their pain they're giving the industry a bad name a little bit dutch and fail as though they're that the big guys on wall street j.p. morgan is a goldman sachs are they kind of tainting the business do a lot of absolutely i don't know if they do they make it more difficult for smaller firms like mine because the f.c.c. and finra they crack down hard on the little firms to show that there are tough cops on the beat you know meanwhile the real criminals get away with you know everything. and and all of that regulatory you know might comes crashing down on these smaller firms and you know they're failing left and right and of course that's music to the ears of these gigantic too big to fail firms because they get

to pick up the pieces every time the regulators crush whatever smaller competitors they're there to absorb you know whatever assets they had or hire some of their their employees or they just get bigger and bigger and bigger ok here's another idea folks say that all of quantitative easing is not trickling down to inflation and price inflation now there's two answers to this one is that there actually is price inflation as you've done a brilliant video on you tube you can look it up it shows that if you actually look at the prices of stuff really at the cash register not how the government reports that inflation in the u.s. is running at nine percent not the two in the quarter or three percent that stated and the other the other idea i want to bring up is and you touched on this before about employment because employment and wages are not going up there's no inflation there isn't there in inflation in fraud in other words they're printing all this money while simultaneously gaming the system and figuring out ways to channel the money that goes from the banks to the commercial banks and then it goes right into acid prices and it bypasses the general economy the real economy there's an

inflation of fraud is not a way to look at it in some way you know you could call it you know you never trickle down economics this is trickle down monetary policy right if you just print enough money and handed out to the banks somehow it's going to trickle down and it's going to benefit everybody else it just rains inflation on everybody else to be sure quantitative easing can jack up the stock market but for average americans that are just earning a wage all it does is make those wages less valuable it destroys their savings the cost of living goes up they pay more for food their utility bills go up and you know the government doesn't acknowledge how much inflation is there it doesn't acknowledge the effect on prices because of the way the c.p.i. was engineered not to show it and then. the government comes out and says oh look inflation is so low here's the c.p.i. that's the problem it's not low enough we need more inflation as if the problem in america is that the cost of living is not going up fast enough that the way to

solve our economic problems is to make our money less valuable so that people who have money have to spend more of it to survive how is that an economic policy you know i was i'd see a v.c. you're up a couple days ago and one of the announcer said that he thought that inflation not being high enough was going to put stress on the consumer i mean stress is relief if prices went down that would relieve the consumer what stresses them out as when the prices are going up and you're right what are the prices that aren't going up is the price of labor their wages because the economy is so screwed up because of all this quantitative easing because we don't have a legitimate savings and investments we can't have real increasing productivity people are losing productive good paying jobs they're being replaced by part time temp jobs and hospitality and leisure and restaurants and they can barely survive and the government says oh wages are low therefore we can keep printing money and all that does is add to the burden of the employed and unemployed because

everything they need gets more expensive and the other reason that we can't see how bad it is is because we've managed to convince the rest of the world to import a lot of our inflation we export our money and they send us goods and so prices are kept in check here but inflation is getting worse all around the world when the world decides to stop importing our inflation and they let the dollar go down that's when it's really going to come back and bite us that with the inflation are going to be so enormous that has to be no way the government can pretend it doesn't want to touch on that we have about twenty seconds but unlike the seventy's when wage inflation went up they had wages go up they started inflationary spiral as it was understood since that time china entered through the world trade organization and cheap labor got exported. china they also became the world's biggest creditor nation they've got a whole you know three to four trillion in reserves when the balance is tipped and that that money they decide you know what we have is that our risk reward profile

is we're going to put that money back into the economy velocity suddenly picks up where it was absent and then you have that sudden surge in inflation that's been basically nasa and or hidden for a few years and then just you know gold goes to four thousand prices or doubling or tripling and then people like paul krugman all say well we never saw it coming it's a once in a hundred year flood in full ahman on and never see it coming and you know the crazy thing is that the the problem is bigger now than the housing bubble yet the same people who are oblivious to the last problem are equally oblivious to this one in many ways it's even simpler to understand but they have you know that they have to build a wall around themselves cognitive dissidence to not see the reality and yet when it does happen you know who knows what they're going to say they're probably going to tell peter schiff oh he's a stopped clock he's been saying this for years you know so the fact that it finally happened doesn't mean it was right just another peter schiff was right video another one of these classics all right we're out of time peter schiff thanks so much for being on the kaiser report

a thanks for writing that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i'd like to thank our guests peter schiff if you like to get in touch tweet us at kaiser report until next time magazine bio. on june sixteenth one thousand forty one we had a graduation party at school and the world program. shops were. always full of good. words in september leningrad was blocked. one day mom went and saw that all the shelves were

empty. in november they bombed the diversity warehouses we saw it was the main storage place for all the food in the city people eating the earth because it had small traces of sugar in it i tried to eat it as well but i couldn't. get the bird like incredibly heavy bombing. it was a direct hit on that very shelter and everyone was buried underneath. all of them were dead. i know c.n.n. m s n b c news have taken some not slightly but the fact is i admire their commitment to cover all sides of the story just in case one of them happens to be. something. that was funny but it's closer for the truth and might think.

it's because one full attention in the mainstream media works side by side the joke is actually on here. at our teen years we have a different thread. because the news of the world just is not this funny i'm not laughing dammit i'm not good. at. you guys sort of jokes well hand of this stuff i've got. or not psych to an active campus had a long time ago where patients are forced back to the months after announcing their strike never turned the world's attention to the place that some jobs gulag of our

times. were. what is up guys i might be martin and this is breaking the set so guess what mom and pop store is so generous that it's actually forking over turkey and mashed potatoes to all its employees on thanksgiving that's right longer only because of the opening the door on black friday just isn't enough anymore nope wal-mart's actually forcing its underpaid employees to work on things giving now so you know stuff even dumplings i guess is the least a store can do that conveniently overshadows the other headlines wal-mart has made this week like in an unprecedented move more than fifty wal-mart employees were just arrested in l.a. protesting the company's notoriously low wages.