here's the. result of. that the. legality of this reasoning. has got a. look and listen to the please show. this manufacture consent to public wealth. when the ruling classes protect themselves. with the fine.

be the one percent. can all middle of the room signal. the real news is really.

max keiser this is the kaiser report countries around the world are struggling to get a grip on the twenty first century things are happening climate change massive storms krypto let's check in with stacy and find what she has to say stacey what do you have to say yes you know governments just don't know how to deal with this global i citizen and the people around the world who have some sort of sovereignty they want to do monetize they want to ban crypto ban big coin but right now there's kind of a game theory going on with crypto because no nation seems willing to completely ban it because they want to maybe they don't want another nation to get a first mover advantage so that's kind of interesting to watch china has a few times like we were last year they said the exchanges weren't allowed to have the off ramp into the banking system and that caused the crash and then it kind of stabilized and they never did anything with that then they clamp down on these i c

o o's we don't know where it's going to go and the initial coin offerings and the big question in the area of space. but a story that you and i have been covering for the past few years is this notion of de monetization i governments wanted to get rid of cash because apparently there's so much corruption out there and they need to protect you from terrorism terrifying and saying from rich people of aid in taxes well we have now the results from india and. guess what it's been a disaster movies anti-graft drive hit after indians return ninety nine percent of band notes indians have deposited nearly all the currency bills voided by prime minister narendra modi denting the central bank's profits and delia blow to his drive to unearth unaccounted wealth banks have received fifteen point two eight trillion rupees which is about two hundred thirty nine billion dollars or

ninety nine percent of the currency invalidated the reserve bank of india said in its annual report last wednesday the government had initially estimated about five trillion rupees would it be declared following the sudden move on nov ninth indicating that this was cash stashed away illegally to avoid tax the cash ban prompted the central bank to print new currency reducing its profit and cutting annual dividend payout to the government i half expected to make a huge profit on it because i thought these thirty percent of the currency outstanding was being hidden or laundered or used for terrifying us and so nobody would turn it in these bad guys wouldn't turn to them but they did you know he gets advice from the male liberals economists like robert shiller goofball. to advise russia after the collapse the guy with. the other guy the one. we saw our harvard economist yes they he listen this guy he also listen to all these

are going to con him out yeah i like larry summers and psychopath so what the way they pitched it to muddy was like look people get gift cards like starbucks gift cards are you know various little pieces of plastic gift cards that five dollars or ten dollars forty four billion dollars worth of those gift cards have never been cashed in and you say we're going to come back today and i will we are my interviewing somebody the second half is it that guy from the jersey now so anyway . this will cover the consequences of it the consequences are politically he's actually benefited because the poor actually think maybe it's fake who's that they're getting but the poor in india actually think that this is worked and targeted that they themselves suffered and they themselves had a bad situation and many people died but they think that the rich suffered under this but they didn't win them a lot of bombers to kill themselves because of months and

a really happy to so let's go over what from another headline from bloomberg what was expected and what failed to happen based on the theories from the white tower called the economist where the economist live they say this is the high tower where they think they know better than the rest of us moody's biggest move is a total bust eliminating eighty six percent of the country's currency has had zero benefits some said that eight months on no argument advanced by the government or its backers in favor of the monetization has been validated some officials argued that the piles of cash the prime minister spoke of would be extinguished representing a transfer from black money hoarders to the reserve bank's balance sheet which the government could use say to recapitalize india's struggling banks that has not materialized and in fact the r.b.i. has given far less than usual to the government this year in fact as i said is down

fifty percent remember these are some of the arguments that were used in the west when the federal reserve bank or the e.c.b. starting gauging in all this quantitative easing and bailing out banks them and buying up mortgages that the government would was going to profit from this and. they never do that this is the disaster unfolding in india just like a disaster in the us and the e.c.b. i love the word extinguished it's like wells fargo you know they they read thanks to the money out of two million of their customers accounts then they found over there to another million then they defrauded people no mortgage market and they defrauded people some other way you know and warren buffet you know one of the biggest sellers a while fargo is like gee i don't i make money by reputable off i still people's money i'm more buffett i'm a thief i'm a thief i want i'm a thief i don't care i'm a thief i think i think you know that's their business so they wish people's money that's the business by whether or not they're fraud and people they're robbing people ask warren buffett so again another claim they made and then the exact

opposite happening we're going to go into now some said that counterfeit currency would be exposed in fact it's less than zero point zero zero zero seven percent of the cash taken and the prime minister himself argued that the monetization would quote break the back of terrorism by cutting off sources of funding thin stead this is then among the bloodiest summers for indian security forces in kashmir this week jaitley who is the finest secretary argued that the move would change indians behavior encouraging them to use digital payments instead of cash but as i've pointed out in the past demonization is the exact opposite of what caste sunstein would call a nudge monday's a put down the pipe. i think you're confused if you hadn't called i'm a cultural mixer and blunder like

a coin mixer over there but narrow but anyway this guy modi he doesn't understand that the fear of money produced by his own bank of india is the central bank of india the bank of intent that they have a central bank your own bank of india supports a fee on money system that is open to all terrorist info. it's a terrorist to print and buy arms and kill each other and they call the g.d.p. growth korea paul krugman york times is g.d.p. growth not far from nine eleven o'clock paul krugman celebration nine eleven as a g.d.p. booster is like all right let's go to our viewers who are well of course indian people themselves are the biggest holders of gold so they at least were a little bit more i mean you to the ravages of the economy in the financial system of the monetary system which economists and the brilliant geniuses of harvard inflicted upon them whether or not merican their europeans are going to be as well protected when their schemes these q.e. and all this sort of nervous stuff unfold but now let's look at some of the

consequences max exactly how disruptive was d. monetization well it may have a limited over five million jobs is certainly ensure that growth slowed for weeks hundreds of thousands of small businesses struggle to find working capital many of them may have gone out of business permanently there was so little cast that agricultural prices crashed and as a result protesting farmers began the demand that their debts be written off the government may give in with dreadful consequences for india's fiscal position ok so those five million jobs lost ok a lot of people can be dead just busted like the bus or why will they die oh this must lesser out the money system lose five million jobs which you know we can replace the robots and we're going to mess with the farmers again who are controlled by monsanto and those people are going to be like dead dead people dead indians they will be breeding like worst in bhopal let's calm

down a little bit and go into some of the details because you know this is this is a similar situation that we've seen in the united kingdom and europe and the united states jobs have been lost real wealth creating jobs have been lost and all that has been has been replacing it our purpose. arius gaze khana me sort of jobs because those are can be papered over with this current say they keep on thinking that they're just going to come up with a new crazier scheme to deal with the consequences of their previous crazy scene so modi you know what i have to go on to something even crazier because we've seen this now in japan we've seen this in the united states we've seen this in europe that they have to every crazy plan and act causes so much disaster that they have to come up with an even crazier plan on top of that whether or not you know it first started out as tarp in america that we needed queuing that we needed nor there. i don't know what money printing central banks is that that paper over every

mistake of more paper and it requires more and more paper the amount of g.d.p. growth as a result the money printing in america used to get a dollar for every g.d.p. growth every two two dollars and fifty cents with the money printed now takes eight or nine dollars of printed new money to create what all are simple stuff to be saying this is a mission i put sensible non-sensible i put on one stupid it's a crazy stupid stuff ok because i just feel sensible because i want to get like click click click click you know it's going to be animated see all this is grew up on cartoons ok. it's not my project that's dumb our fault you're projecting some people don't grow up on cartoons the world didn't grow up on cartoons who doesn't worship bugs bunny. so exactly how slow how much the economy has slowed again here are some of the figures on that a raft of economic data since the note banned decision has signaled that the two

trillion dollars economy was hurt by the cash clampdown raising fears that the economic growth would stall growth in the quarter ended march twenty seventeen slowed to six point one percent from a year earlier and expanded seven percent in the previous quarter again though corner of jimmy quarter quarter so again however this is actually less crazy this is well for you this quarter voters are crazy voters seem to see the voters are about to keep on and see we know it is saddest manufacturing consent if you put voters in the front of a t.v. gun with nothing but garbage they're going to do stupid things that's why this is the shows a corrective it corrects all the psychosis of the psychotic pyramid schemes are going to go to a break watch it learn something come back and then only learn it ok.

desperate for a single purpose. they have a superman. they start training very young. eight months of intensive school. raps. and they save lives. here's what people have been saying about rejected a night with us actually just full on awesome the only show i go out of my way to launch you know what it is that really packs a punch at least yampa is the john oliver of hearty americans do the same we are

apparently better than food. and see people you never heard of love back to the night my president of the world bank though hates. me please send us an e-mail. welcome back to the kaiser porno mags guys i know before the break i said i would be talking to a famous guy from new jersey not. not bruce springsteen not joe piscopo but the inimitable the well informed michael ponto from going to a portfolio or been to a poor dot com welcome back michael thank you for having me again ready siri get into it now i want to talk about global issues because i know as a polymath money manager and interested in all things global and money you would probably have some opinion on this in india they went through this whole de monetization scheme where they took off the high did omniscient now if they thought

that people were treated like a starbucks reward card and forget about it it was forty four billion dollars in those little reward cards that just people threw away in the indian motif thought you know what we're going to try to do the scam and we're going to make money doing this by ripping our people off and if you work ninety nine percent of the people do the exchange anyway so you know what. the motive was his reply off the indian people well you know what you're right but probably will mourn the fareast in that there's a whole global lurch towards getting rid of cash we want here is why in the world would the powers that be the elite illuminati central banks want to get rid of cash and the reason is because it makes negative interest rates a whole lot easier if i cannot take my money out of the bank and you can make interest rates anything you want as negative as you want there's nothing i can do but spend money that's what we're going i think the next recession but by the way

just the same way to we're talking a little bit less time. you know how many times of the central bank the united states say that we're going to raise interest rates now we're supposed to four times last year and every time they threaten to raise rates that's four can just get kicked further and further down the road so i firmly believe. that after the next recession which is coming very quickly if you see housing is already rolling over you see ordos x. harvey and irma are rolling over we are very close to going into another recession here it's been very very long in the tooth. when our next recession comes there just isn't enough room to lower interest rates were one and a quarter right now one one and a quarter on the fed funds rate we can bring them down to zero one can do much of anything and we already learned that q.e. is not lasting does not sustain us above two percent annual g.d.p. growth so the next recession is going to be very very deep very very brutal they're going to have to deploy something called helicopter money and negative interest rates and that's why they need to start to eliminate cash ok negative interest

rates it's really an interesting topic because it just popped up in the last few years and up until then no economic textbook in the history of the world had any chapter on negative interest rate is a complete invention of the twenty first century and what it means and that's rawest form is when a government will sell bonds that short of parity you're actually get guaranteed a loss now you're buying a thousand dollar bond for nine hundred fifty bucks and you're guaranteed to lose money on it in nominal terms and nominal terms yes and then you have the negative interest rates that come from the inflate the inflation adjusted real rates which is by understating inflation and if the economy says it's doing two percent but it's actually the real inflation is three percent right it's negative you've been negative and you've got deflation you've got negative rates right negative real interest rates a liberal if you have inflation inflation minus the nominal rate so if the nominal rate right now which was the ten years two point two now and it is two point one

percent now and if you have three percent inflation your real interest rate is negative one percent but if we are doing a negative nominal rate your guess at the start of the contract is i am going to loan you money and i know i'm going to be a loser from the start and you top of that and inflation you have talking about really matter. of li negative real interest rates what a loser you're going to get so therefore not you personally right in society i mean capitalism runs on capital and capital in order to work means to pay an interest rate to attract more capital and if you don't have an interest paying on your capital you don't have capital that's not capitalism right where you listen when you talk about very intelligently about price signals why would you look i have a look of shock on your face as if i would say something intelligent inconsistent with the normal been going here and then i got the three done that is this is something done they don't even have to bring that up but you talk about pricing this is an economy what price signal do you want to take away so you can blow

everything into an asset bubble that stocks real estate or dimes everything into a bubble you take away the backbone of capital capitalism which is the interest rate that's the price and the cost of money and that's what they central bankers have done so i said a fifteen trillion dollars one hundred fifty billion new every month when that goes away reality will hit until then just look for the gap between the very wealthy and the poorest of society to grow why would i do that money printing that going on eight by fifteen trillion dollars over i also look at a chart called money velocity this is the mesquita which money circulating the economy banks lending to banks lending to banks and that's near all time low broad money supply one is one direct so now isn't that telling us that banks are purposefully not lending the money that they're being given by the fed right they are they therefore in collusion with the fed you mentioned the luminati you

know the. words that trigger certain conspiracy however. it's obviously in the interest of the top top top one tenth of one percent not to have individual sovereignty they don't want people with savings they don't want people being independent and outside of the matrix of student debt debt medical. and all right. one of your other programs i was listening to the trench and gap between the rich and the poor so what the federal would central banks can control is what's called base money which is physical currency and credit bad credit so when i create when i counterfeit money as a central banker and buy a bond or a stock from the from the from a private bank they can decide whether they can make a loan or not and if there's no demand for loans because the private sector is so in debt it's a debt disabled world that we live in seventy trillion dollars of additional debt since two thousand and eight it does not meet us in the kenzie good people at mckenzie. well there's no demand for loans then the broad money supply and the

velocity will drop but asset prices what do i do with it as me as a primary dealer when i get that fed credit and i say what what should i do i'll go out and buy some more bonds i'll go back and buy some stocks because i know they've got the central bank behind me that's what's happening in the euro land and in japan as well the jobs are disappearing robots are coming in automation is coming in as if for inside a radio where they don't need workers they just pump more oil with a few guys and so in america they don't need workers they just print money from the central bank so they've got princes in washington and they've got slaves everywhere else yeah it's the gig economy that's why you're not seeing a lot you know that if you look at the initial claims on joblessness not so bad because when you get laid off from being a high paying manufacturer with great benefits you can just go to lift ruber and get a job you know you make one tenth of the used to make and you're not working pole part time you're working part time you've got no benefits you got nowhere for one guy you've got no pension but you're employed and then the central bankers will

look and they go oh my god look at the unemployment rate it's four point four percent hyper inflation is coming at any second because people are actually working i mean i would love i would love to ask janet yellen or or i think fischer just resigned to recently i think he's going to. when is that october is he going to you know he's on the way and on the way out i love the estes keynesians and there phillips curve in here and point to point to the economy on the planet that hyper inflated itself to armageddon because too many people had a job when did that happen well let's see in this country back in the late seventy's we had a a big case of stagflation and people unemployment rate was over ten percent that's a good point i mean the because wages and jobs are no longer part of the fed's matrix of data that they look at to determine what's happening in the global economy they only look at stock prices and they're stupid models that don't work right and the stupid miles don't work now gold of course has been the go to asset for woke money managers like yourself you know something for the millennial you

know to get into gold gold matters you know so is it breaking out now gold because it spent and i mean the. world i think he you know he's got to be talking off the ledge a lot of times you know eric to use a good friend of mine but he's like every day every week is hyperventilating is this the breakout is just a breakout is is this the breakout i believe it is you know a big fan of gold especially in full disclosure i own a company called gold money it's a wonderful company that actually turns the perfect form of money which is gold into the perfect turn see you know you can gold yes and i own it i'm moderately i own i own in my portfolios full disclosure so that's the big rap against gold is that well yeah it's great but if i want to go and buy something with it i'm like take a bag of gold down to my you know to the wal-mart and buy some generators to protect me from hurricane irene peter schiff was on the rugged isolate may show the gold my debit card i want to if i if i don't have whitney but would you go freak out like

joe is freaking out because it's made of the actual metal and it's real heavy as well anyone ever actually held gold yeah they've heard about it they never and they feel that way they're like wow this this is real tangible it's real this is as real as my gun it's not it's not numbers and electrons in a digital. you know what's up is the periodic table number seventy nine and every single gold bar has a frickin serial number and less than one is there by a third party to say that serial number is good gold it might as well be tungsten sox but i don't want to but i graduated yeah graduate aggress. this is so much fun i want to go talk about obamacare and it's boring. let's go. if they can't repeal replace obamacare what are the chances of having a real pithy tax reform done in washington d.c. we can talk about that this time what they mean this home ministration of the what's your thought on it. you know i voted for trump because i was really afraid

of the alternative but i'm even an advocate fan has to be a little disappointed on what he's been able to accomplish so far but isn't it the same thing we always hear every single ministration they come into office and they do if they make a president can do is foreign policy so he goes kills a bunch of people overseas he can't do anything domestically because the congress is all bottled up is the same thing going to what is you know you had a candidate trump and you've got president trump can this candidate trump wanted a really strong dollar and he wanted higher interest rates oh yeah president trump yeah is now a really big fan of debt and he loves the weaker dollar to mechanic is a real estate developer and the last real estate developer the water higher rates was taken on a stretcher and shot in the back of the head and fell into the east river so basically he didn't really drain the swamp he got swallowed up by a swamp as i was saying he's a real estate the he is a terrific you know what he reminds me of billy mays remember billy mays ban t.v. selling venture maddox really marries their. lower than just a reality t.v.

star he's a horrible. peals pocket fisherman guy you know it's like trump steaks you know i love steak you're going to love steak but anyway i'll be reelected though because the democrats are even worse yeah right now that crazy well. i don't know i guess then i think the democrats next time going to they've learned their lesson and they're going to put some kind of superstar like you know alec baldwin or oh you know in for you know a stable job on the bank i'll do a show stephen baldwin oh well you know the great american poet right here on our take ok i want to be on the show i would love to be legit we're going to travel across america and find out tribe of people voting the way that oh we got to go darn it thanks for being on the show thanks for having me back. and that's going to do it for this edition of the kaiser report with me max geyser and stacy herbert i thank my guest michael portfolio strategies money manager stuff in new jersey check it out and i catch us on twitter it's kaiser report until next time.

you seen years ago i traveled across the united states exploring america's deadly love affair would be gone if a bad guy tried to get to one of my family members he would have better luck with that i don't know i think they are inheriting whenever my my baby says my book was published in the year two thousand when the whole for a million americans have been killed by phones in the us how to thought to me as i did this is a middle school we go through drills and we put ourselves some real scenarios it was interesting to see who actually got here. i just saw it to return to the subject to track down each gone on to who i'd met and goals those

years ago. but we are not. what hopes is to. put them so. a lie. to get accepted or rejected. so when you want to be president and three more somehow want to be preached. to the right to be press it's like well before three in the morning can't be good. i'm interested always in the waters about how. they should. credit as one of the basic instruments to drive an economy but it can also lead to tragedy i did it i took a line just i came to god and meant that the debts tie came to god and it was.

many lives have been broken by excessive debt and the banks got you into trouble i know only big bankers go. there i think on the government by the banks but i just didn't think of the ordinary men who lost money through the back under don't buy credits as people see no future bad face and how you know you become ill you due to job your relationship breaks down you become a casualty is dead a life long trip or is there a way out i was actually going to bed governor would be right to ditch a bill for so much for a few somewhat. by

. the u.n. security council. adopts new sanctions against north korea after the resolution was changed from a tougher u.s. drafted version. with still controlling only fifteen percent of syria the race is on the to retake oldfield's from the terrorists as russia assisted an us bank forces both close in. and there are fears islamic state finds as good now easily get into europe with german authorities believing the group's got its hands on thousands of stolen blank syrian passports.