incredibly tense situation. donald trump pours cold water on global diplomacy as the president calls the new u.n. resolution on north korea no big deal not a big deal those sanctions are nothing compared to what ultimately will have to happen. nationwide protests in france that turned violent as people throw projectiles and flares to counter my brand new labor law that is due to come into effect in just a week. islamic states and the territory in syria crumbling the race is on to retake oiled fields from terrorists with russian assisted and the u.s.

backed forces of both closing it. and will be back in about an hour's time to complete look at the day's top stories with my colleague. but for now it is the report with a look at the recent to molt in india's economy plus what is next for gold stay with us. much faster this is the kaiser a fourth countries around the world are struggling to get a grip on the twenty first century things are happening climate change massive storms. let's check in with stacy and find what she has to say stacy 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's 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 point offerings and the big question and theory and 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 aiding 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 who's a goofball. to advise russia after the collapse the guy with. the other guy the one no crotch we saw our harvard economist yes they have 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 modi was like look people get gift cards like starbucks gift cards are you know various little pieces of plastic gift cards 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 work 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 all the farmers who kill themselves because of months on a really happy too 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 economists 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 and all this quantitative easing and bailing out banks and 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 u.s. 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 in our mortgage market then 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 their business well not the 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 cast taken and the prime minister himself argued that de 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 into they have a central bank and their own bank of india supports a fee on money system that is open to all terrorist them. and actual terrorists 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 oh right let's go to our car 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 on to 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 to monetization well it may have eliminated 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 to 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 won't 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 in 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 are pretty. arius gays economy sort of jobs because those are can be papered over with this feel currency 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 they enact 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. 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 of 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 you 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 i just feel sensible because i want to go like click click

click click you know it's going to be animated see all this is grew up on cartoons ok. i did some of your project and i've done my fault you're projecting some people don't grow up on cartoons the world didn't grow up on cartoon two dozen 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 says the note banned decision has signalled 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 the gym a quarter quarter so again however this is actually less crazy this is well for you this quarter voters are crazy voters seem to see voters are but i keep mine 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 on to a break watch it learn something come back and then only learn it ok. they're bred for a single purpose. they have a super power. they start training very young. eight months of intensive school. they're rats. and they save lives. in.

syria paradoxically. compadres and was a situation like israel and palestine is not a country where i meet a lot of people without hope though everybody agrees this humanitarian situation in syria is a very serious situation people have been much more affected than in any other active conflicts to date. credit as one of the basic instruments to drive an economy but it can also lead to tragedy i did i took the whole gist i came to god and meant that the text i came to go out and inspire now on trial on. many lives have been broken relief excessive to

the banks culture into. the normally big bankers got big. government by the banks but i didn't think of the ordinary man and the last morning through the back under don't buy creditors people see no future bad face from have you become ill you do to a job your relationship breaks down you become a casualty as does a lifelong trap or is there a way out of those actually trying to bit or no right to judge bill for. a few more. welcome back to the kaiser port imax 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 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 domination notes they thought that people were treated like a starbucks reward card and forget about it you know forty four billion dollars in those little reward cards that just people threw away in the indian mode he 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 to get 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 where 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 a thread to raise rates that's four can just get kicked further and further down the road so believe i firmly. leave that after the next recession which is coming very quickly if you see housing is already rolling over you see autos 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 in

a quarter right now one one in the quarter on the fed funds rate we can bring them down to zero as i 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 at 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 a negative interest rate that come from the inflate the inflation adjusted real

rates which is by understating inflation and it but if the economy says it's doing two percent but it's actually the real inflation was three percent right it's negative and you've been negative and you've got deflation you've got negative rates right negative real interest rates a referral 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 go to in 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 mad. civilly negative real interest rates what a loser you're going to get it so therefore not you personally right in society i mean capitalism runs on capital and capital in order to work mates 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 we listened

when you talked 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 goals in 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 like i said 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 when i do that money printing that going on about 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 yes 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 loss of the 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 go out and buy some more bonds 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 and as well the jobs are disappearing robots are coming in automation is coming in as if arrested on 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 get a job you know you make one tenth of the used to make and you're not working poll part time you're working part time you've got no benefits you've got no where 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 there phillips curve adherence 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 of spam and i mean the air coming over can 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 currency in 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 want to take a bag of gold down to my you know in a wal-mart and buy some generators to protect me from hurricane irene peter schiff was on joe rogan isolate the 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 go ahead it's real heavy millennialism never actually held gold 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. no except 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 socks but i don't want to but i graduated yeah graduate aggress. this is so much fun to. 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 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 the same thing we always hear every single bit of freshman they come into office and they go 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 congress is all bottled up is the same thing on just what it is you know you had candidates from 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 thrown 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 you know it he reminds me of billy mays remember billy mays band t.v. selling venture maddux really mary sarah. lower than just a reality t.v. star he's a horrible barker. 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. the bank i'll do a show stephen baldwin zero zero zero zero zero great american held about right here on our say ok i want to be on the show i would love to do i judge i'm going to travel across america and find out try people voting the way that i'm going to get

started thanks for being on the show me back. that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i thank my guest michael parks all the strategies money manager stuff in new jersey check it out guy catch us on twitter it's kaiser report until next time i. would hope to. put themselves on the line to get accepted or rejected. so when you want to be president. wanted. to go and.

see what was before. the good. i'm interested in the war. candidate donald trump ran on a campaign that not only question many foreign policy board to dogs he's but also lashed out against new conservative views the world today the president just surrounded by men in uniform. this soft coup. this is a story of one of africa's giants. know his teeth aren't that sharp. and his neck isn't that long.