trip to two thousand and seven when the liquidity crisis began we're seeing this over and over and notice in the news as you look around this notion of liquidity there's a liquidity problem around the world and that's what you first saw in two thousand and seven before the giant crash of two thousand and eight of the financial markets in the banks collapsing in the u.k. they're reporting growth ok we don't know if the figures are based on a round trip in from china we don't know but what part of the growth from last year and you know mark carney and george osborne have been celebrating the fact that the u.k. economy is growing but i want to remind people that it's a lot of round tripping of our own cash that was stolen from us because this first headline is from august of two thousand and thirteen last year p.p.i. compensation spurs a car to me through spending booze banks have inadvertently provided to boost the economy through the vast compensation payments made to customers who are missile payment protection insurance so last year they gave ten billion pounds to the economy which was promptly spent because people felt it was free money hey you guys

still one hundred billion for me and now you're giving me ten billion back i feel rich it's kind of like a casino model well right now today this headline from this week bank customers the missile duf package the calends winning thousands of pounds in compensation so account holders were paying up to three hundred pounds in bogus charges of various things they didn't even know they had on like payment protection insurance sort of stuff and now there's going to be a new wave of round shipping your cash that they stole from me they're going to give it back and this is going to boost the economy so recycling is fraud recycling so the bank commits fraud on the customers the customers try to sue the banks and create the g.d.p. growth. keep in mind that there's g.d.p. growth in the u.k. no matter what the number is that they say the level of debt is growing faster so i mean that's the that's the big joke i mean i was born in carney or you know the mainstream media will tell you that yeah it's growing but the debt is. growing

faster so it's completely unsustainable and there's a bubble being built on old crust yet and what is death of bringing forward future consumption so that's what we're always around because we get to the future tomorrow and we're already spent yesterday it makes more sense to just. stay home and eat chinese pork bones that because there's nothing for you out there it's just rain marmite and fraud. but again you know it's you often mention this casino gulag model and what happens at a casino first of all the house always wins and kasia only some sucker wins some money there at the at the slot machine here we don't know how much it's been stolen from libel or or stolen from for x. market rigging or gold market raking or all these p.p.i. sort of schemes and they decide to give us some of the money back that they stole from us and for some reason it makes you feel good just like when you lose a thousand pounds at the casino and they give you a free drink and then you're like woo part of

a yeah there's no rule of law they'll never have a law enforced where they just b.c. or barclays lloyds royal bank of scotland have to conform to the law but they'll try to shake them down for a few the pennies that they stole and then like the casino people will be happy that they got a free drink after the bank just stole my house well you bring up the rule of law you know there was a headline this past week where the lord chief justice here in the u.k. warns the metropolitan police the police here to stop working for private business they become they're using their public authority as the ability to arrest and season search people's property for on the behalf of that in this case they were talking about virgin media virgin media offered them a deal of twenty five percent of the kickback basically if whatever they could get from these fraudsters they said they could get twenty five percent back so they've been warned not to act as private forces for private business first. dot co dot

u.k. buy yourself a bobby virgin media yeah gray fascism again so we're talking about this round trip and the other thing that's round tripping is of course back to two thousand and seven is we also saw a lot of crises in the emerging markets back then but here we have it again in the turkish lira and we see a beautiful roundtrip here look at this chart and that is after the central bank of the republic of turkey raised interest rates by four point two five percent the lira soared only to crash back down again well remember the turkish lira crisis back in the early ninety's was there just amazing black markets that spring up one dealer was trying to sell me some lira on the black market and he made fun of my shoes so we got into a fist fight and i pulled the guy i mean that's the kind of risk you take when you

have this kind of black market action in currencies trying to find that guy where was it turkey you know bust his chops you sound like a congressman from new york. well it's a new york thing isn't it i mean these people and they go to these countries these black markets whether it's in turkey or venezuela or these other countries that are being financially destroyed by america it's all of these black market dealers is going to give a new york style you know negotiating tactic which is give me my money i'm going to bust your chops you know the problem the turkish lira is first of all goldman sachs said you know though they raised rates by four into twenty five basis points true the fact is that they were only raising it to two hundred twenty five basis points so the markets quickly realized and they round trips back to where it was the other thing is that the fed has announced that tapering and of course this is a round trip the current the money the free sloshing money of liquidity was sent out it all went to the bankers which then sent it to the emerging markets brazil.

latin america asia so all the money went out that way and now it's retreating it's coming back and that's what you see there now another issue this past week has been the state of the union address by barack obama and he's mentioning inequality now sandy jaitley who i follow on twitter tweeted out this interesting chart of income so if you see here you see wages as represented by the federal minimum wage in money terms that's fallen from one gram per gold hour in one nine hundred seventy to other under point two grams of gold per hour today so it's been declining at four percent a year and obviously you see your wages were nominally rising but in gold terms they were always falling well we've talked about this before that there in the last twenty or thirty years the advent of derivatives for bankers to manage the economy in such a way where they can make asset prices that they own stuff like art go up without allowing for any wages to go up so this is the modern equivalent of a the atomic bomb that was created that was

a totally distorts the relationship between matter and energy here you've got the relationship between risk and reward which up until the derivatives industry was somehow connected through something called supply and demand and liberal economics but now there's been completely divorced there's no connection between risk and reward anymore you can take all the reward and head all of your risk which ends up going into the general population the public domain in the form of no wage growth no wages no jobs and then when barack obama gives his state of the union address again it's all optics there's no substance every single point he made can be counter factually proven to be a fricken lie the guy's the biggest liar if they create a mount rushmore of lies made out of marshmallow and dog poop because this guy is discreet the thing is you mentioned liberalism that we used to have now we have neo liberalism which is you know transactional ism and contracts and trade in fact back and forth which is why we have derivatives hundreds and hundreds a trillion. based on the real economy of a fraction of

a trillion so the same thing with the income is people were spending more and more because it looked on paper like they were making more and more so they psychological that they thought they were earning more but in goal terms they spend declining at four percent a year so this is why we have these this global instability this we're having trip to instability you know the way of the. point being that under truly understand how inequality. has as widened dramatically historically is to look at things through the prism of gold then you'll see the true picture you can't rely on g.d.p. productivity wage numbers anything the government publishes is just different than a lot you can look at you can't use those numbers you can only use those numbers if you're applying game theory to portfolio management and trying to front run the liars with insider trading that's the only good that they're there for if you're

trying to understand the economy can only look through gold and price things and gold understand the true trends in the true distortions and finally that's what why people are nations like china are acquiring gold in my germany as acquiring gold now when we round trip back to two thousand and seven and the credit crisis in the collapse that is coming instead of the bailout we're going to bail and this time wealth wealth tailwinds yes herbert bayliss i mean this is what is just what lloyd's going to give you your money when you just b. c. they don't give you your money that's a big deal it is a beginning of a bill and you say all right we got to go bye. bye. state for the second a whole lot more. to get a lot of. government. funded. and then

a lot of the shelter today be having people rather stay on the street because people begin raped in shelters they get involved right now ironically ironically i'm worth more to the city of new york he told. them personally. when you paid regular people like someone like a lawyer or doctor or some other madison avenue it's boring and sometimes the homeless people do little to inflict the alibi. is the same country rather than the state restraints were. in this city or region city in the world what people. pay money to do is give you. the least anybody to make you feel you know get up. and.

seek. shelter on june sixteenth one thousand forty one we had a graduation party at school and the war broke out. the shops were always full of goods. but in september leningrad was blocked. one day mom went and saw that all the shelves were empty. in november they bombed it but die of steel warehouses where you see 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. the third night it was incredibly heavy bombing. it was a direct hit on that very shelter and everyone was buried underneath. all of them went dead.

what is the truth who is writing it and where was it leading to seeking to bearings we seem to turn to the news to take heat for the medium is the message and this most by will mean the planet is now the method for defining collective reality each night if it's not on the news it didn't happen right. you. know the playing. field and big spirit travels with the flame from its best place in greece. joining james

brown for an elemental and epic journey around russia and beyond. where i was to go. welcome back to the kaiser report imax keyser time now to turn to mitt firesign author of this epic classic planet pod is eight minutes welcome back to the report where your dog you're bringing your dog sammy. max i was going to bring sammy but he doesn't like going out in the rain as you can see it's our first official day of winter it's freezing freezing rain out there notice look what sunshine oh my god this is what they call the what's on front can we i.p.o.

it it's worth courting to some twenty billion dollars valuation but let's talk about taper taper and more taper and lack of taper and you can't ponzi it to what's going on because the fed has gone from eighty five billion dollars a month in quantitative easing to seventy five billion now sixty five billion they are tapering they are tapering we said you can't taper a ponzi they are tapering what's going on you can't taper a ponzi max but the numbers aren't what they appear i think if you're to go and look very carefully. the first amount was ninety five billion so it went to eighty five and out of seventy five if there are indeed tapering but the lack of transparency out there is very difficult to tell what they were doing the rest the world happened in effect that the emerging markets are the currencies in these emerging markets like the south african rand the russian ruble argentina their cult of turkey it's all collapsing i think that you know there has been an ongoing currency war that started in two thousand and eleven when the fed the e.c.b. and the bank of england decided to have this lax money policy they flooded the

world with about seventy trillion dollars since two thousand and eleven we've got a couple charts we can flash up here. indian rupee has dropped forty two percent the brazilian reale down fifty seven percent in south african rand down sixty eight percent leaderboard in the in the clubhouse so you know you've seen this in a lot of these markets now people are just starting to talk about turkey and argentina ready to default again i don't know if that's going to be number five or number six maybe. since two thousand and one i think was the last time argentina defaulted but this is all unintended consequences of money printing bernanke on his going away tour his last tour i don't know what it was called said the problem with q it's a direct quote the problem with kiwi is that it works in practice but it doesn't work in theory so now can they taper it i think that they've they've said ok we've done twenty billion in tapering i think now when the stuff starts to become unglued

not as a result of the tapering but just a result of too much liquidity and too much mis allocation of capital ok let's go back to two thousand and eight because two thousand and eight had a credit crisis the credit crunch the sub prime market collapsed they came in with these programs quantitative easing to save american banks j.p. morgan goldman sachs bank of america merrill lynch what. bank of america so they flooded the world with all this money essentially to bail out american banks now five six years later they're pulling back on that liquidity presumably having accomplished their goal of saving american banks now there are only going to let these other countries and these other banks out hang it up to dry it is that is that a an unfair characterization it's difficult to determine where all this money really ended up and i think if you go back and you look and it's on the website the tarp website if you go back you can see that a lot of foreign banking institutions were. beneficiaries of the tarp program and

the bailout programs and i think with guarantees implicit guarantees and everything else they had out there is probably closer to thirty trillion they stocked out there now you had you know president obama did his state of the union address where he said and i'll quote. here are the results of our efforts lowest unemployment in five years a rebounding housing market and eight million jobs created and our deficits were cut by more than half let's look at those three items wait a minute you're taking over the interview i was i going to talk about barack obama's state of the union speech that wasn't on my list of things to talk about you know money and i want to talk about china ok let's go to china right so china everybody's worrying about this round trip and their books are seriously cooked right so there's the shadow banking system just as focused on this whole quantitative easing in the bailouts in the money in the liquid case because china

was growing at these extraordinary amounts but their shadow banking system grew even more robustly and now they've got some genuine credit crunch crisis happening potentially in china so that again this is a result of this tapering idea is it so is this china and mirage now about to implode well the china mirage will implode i mean china has a billion people i mean china is gigantic it's got a massive engine they deal with things a lot differently in china than we do in the west so as you saw this morning the h.s.b.c. p.m.i. came out for the first time under sixty it showed a contraction in business which which is is fairly bearish in china that's that's right the chinese g.d.p. p.m.i. came out this morning so can you believe the g.d.p. numbers in china is the question and i don't know what where we go questionable i mean official from the chinese government came out i guess it was eight months ago

in the press and somebody said well look we're going to compare these statistics this is before we get around turns we're going to compare your statistics to your consumption of power generation of power compared to g.d.p. and the two numbers don't match and the official said wall our g.d.p. numbers are for reference purposes only you know whatever that means i'm not really . sure so the round the round turning with the hong kong customs i'm sure it's probably going on yeah around shivering in the aga khan customs outside to break that down a little bit so in other words they are reporting on these numbers erroneously fallaciously because they're double accounting and double chipping and they're not really explain the round trip you know it's the road tripping basically from what my understanding of it is is is the difference between what china is. reporting as an export and hong kong as reporting as an import and then they try to reconcile the two and it goes back to china so i mean it's the same thing that's going on in

greece starting next october where they've changed the methodology of the way they're going to calculate g.d.p. so you're going to see as a result you're going to see their g.d.p. boosted by three percent now they're just magic in the numbers they did the g.d.p. numbers they change the basis for calculation in the united states that's why i was going to talk a little bit about the way the unemployment is calculated and how that skews the market because the politicians will come out and tell you oh well unemployment is getting much better it's improving but they're not including what they do is once you're done with your benefits and your drop off the payrolls it's not that you're counted as unemployed you just don't exist any longer the employment picture got a lot brighter in the u.k. as you know when everybody was crowing about the numbers mark carney included was crowing about the employment numbers and he's changed his strategy in terms of raising interest rates he said well that forward guidance is out the window so he's come up with a bunch of the other terms that he has like escape velocity which is

a meaningless term so if you look at the seven point one percent number in the u k . out of the jobs that were created in two thousand and thirteen in the first quarter one thirty three to thirty percent one third of them were created in the property markets and for the entire year i think one in five was created as a result of the property bubble markets so these are in real estate now i think there's over close to five hundred fifty thousand people employed in that sector so that has to spawn off some sort of revenues but we're not generating the type of growth through the quality type of jobs and part time jobs don't count to buy these massive million pound for you guys don't take creation of thirty's new jobs or in the real estate sector realtors selling properties to other realtors that are pumped up by osborn's help to buy scheme you know this is especially financial masterbation so they're going to corning on financial masturbation and they're saying look we're economy is growing they're not pointing out the fact that it's

the feeding mobius strip of fraud it's a ponzi scheme and this ponzi scheme otherwise known as a so but i want to get into the whole big picture here here because. two thousand and eight credit crisis they flood the world with liquidity to balance the zombie banks they still do now in the u.s. i believe they feel that these banks are safely reliquefy they're pulling back these other countries are seeing their currencies collapse because they're taking away the punchbowl fact of lee because of the fed is the really the global central bank in defense they're raising those interest rates so turkey is raising rates and these other countries are raising their rates which of course is the death toll for all the real estate speculation is going on which brings us to these two other commies the u.k. and the u.s. so let's look at the u.k. for a second the u.k. has been living on cheap rates in real estate speculation will this emerging market trend of raising rates to defend themselves against the u.s. tapering will it come to britain will britain at some point have to bite the bullet

and say oh my goodness. because of the fed's tapering we're running out of money on our ponzi scheme we've also got to raise rates which means really the whole real estate bubble in the u.k. collapses well that's an interesting point of contagion rates in the u.k. shores that's my question two of the biggest problems with two of the biggest problems are right now it as long as too big to fail exists no one can trust the financial system because that's basically heads heads i win tails you bill me out and that's not capitalism but we understand it and they shouldn't but they give them all that free money to keep the zombie banks alive right so but that's what happened the u.k. is still ristal zombie apocalypse headquarters well well well the contagion come to their story it's on the shores already because we're seeing we're seeing on the beach and being you know violating the capital is two different things here look at that building that you know that million pound five what what's happening now in the markets as i can see is you've got

a tulip mania you've got people that are stepping up ten to twenty percent to buy flats that are already ridiculously overvalued because of the george osborne mark carney liquidity and the help to buy ponzi scheme ok so what happens is you know you can keep putting money out there in liquidity and the united states learned with fannie and freddie by allowing them to go hog wild and that blew up now president obama getting back to that for a quick second said the real estate market is recovering but if you look at who the buyers really are what you've got are a lot of hedge funds and you've got a lot of banks that are buying bank funded and indies that are buying single family homes to rent them out so that it's turned into more of a marketing you know the next best investment and goldman just came out with a securitized program to sell bonds on these which we've seen something like this before when it blew up the first time like timberwolf and the other subprime investments i mean this is just the same stuff recycled because the market has

a very short life and does not hurt america. foreign policies if latin american countries go belly up due to tapering because you know they were very upset when the us invaded iraq they took their eye off the ball in venezuela and all the argentine and the other banana republic so they've been manipulating for decades now with tapering the economies are these currencies are crashing so it opens up the possibility of cia you know get on the airplane go over there venezuela you know once again they run the show so isn't this part and parcel of their kind of a global geo political strategy that's all idea well we're just going to bankrupt these countries again as we've done in the fifty's and sixty's and seventy's we did it was in iran in the fifty's you know it doesn't help them geo politically they want to control latin america again they hate the fact that latin america has gone capitalist and without the u.s. getting a major play doesn't help them going to reestablish a beachhead in latin america well i think the united states has a bunch of problems i think there's no chance that they can pay back and my book explains that the two hundred twenty trillion that they have in debt and

entitlement social welfare entitlement programs venezuela as an example going to south america as their currency has declined seventy four percent you see that that's a big problem argentina had to raise prices thirty percent but it's a big problem because they're not the end up being rolled by the cia again because as they were before the fact that they were a we got to go we've got to go we're going to cut to come back what we read of the clock says a lot of time mistress time thanks for being once again the kaiser report thanks mike that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert of like to thank our guests mitch firesign of planet ponzi dot com if you'd like to get in touch tweet us a kaiser report until next time but. even

a few hundred a day coming across the country. i'm going to go. we've got people coming in with criminals. people from who knows where in the world this is the united states i'm very tough by the way you know. i was worried that they may not know why they live on mars you know mars. so we pick up things like. turbans prayer rugs and we know that they're coming from the middle east a concentration. concentration camp. hasn't the right not even one in school the fact that. a stranger.

a century ago this year the first world war started to fundamentally change the global political order later in even weakened international system set the stage for the second world war since the end of the cold war the global order has been in limbo under american domination in the twenty first century just how stable our world politics. are london. the whole. country. in the end. of the court that building at the end of the street another one the more transparent society gets the money or the puppet tears become we see military and state police forces mobilized against people who blend into the city the city the more people trust electronic devices the more defenseless they are.

fear that has a thousand on. sigrid lumber tour. was to build a new most sophisticated. anything tunes mission to teach music. this is why you should care only.

takes the forefront at a security conference in munich. what does incitement own. violent street protests have to do with democracy meanwhile russia's foreign minister hits out of the e.u. . for its view of the riots that have split the country right in the middle. of his no food nothing to eat or drink the militants are inside. the cell of the prophet who want this to stop. being a rebel held palestinian refugee camp in syria has received its first food aid in months often dozens of people died from starvation. i mean flame goes to the very top of europe's highest peak just us.