we're in denver fifty two hundred eighty feet above sea level behind me is devil's peak and somebody's head famous landmarks that define the skyline and of course this is where john elway plays football casually and he did a while ago and the denver broncos of course no one cares about them anymore because a new england patriots are fricken great tom brady is awesome and even talks about the denver broncos anymore. i've even heard about that is anyone talk about that now anyway let's get into it. this is like a fighter jet so i have just been recalled i must go fight the enemy. so max by the way you did start off with a little bit of cultural appropriation there by wearing the sunglasses you bought in the navajo nation gas station in new mexico in new mexico or somewhere in middle of nowhere great american pilgrimage soon coming to our tea myself stephen baldwin traveled across america on a pilgrimage looking for the real americans like simon and garfunkel on crack. yes

yes that is how many people go to convenience store and there was a man there speaking navajo yeah that was the first time i've heard anybody speak a native american language it was pretty cool it's awesomely large the whole navajo region it's so big and so gorgeous and then when you cross over to colorado it's like somebody pulls up a curtain and you see a wall of money a wall of money a wall of snow amounts do a lot of this we need mexico stop and no money at albuquerque is there of course or so they make mass methamphetamines and the mess labs according to breaking bad we look for that garage with one hundred million dollars we could find now we couldn't find that of course you know when we're going through navajo nation and it is massive it starts in arizona in new mexico i don't know if it spreads into colorado probably not because these people are stingy with that sort of thing they don't like to share maybe buy second hand over to colorado's farming there's cell towers in seattle homes and you know out of that they've got going on over there but it's

clearly make a lot of money was annoying well they just want to obviously this is an untapped resource in the navajo nation the you know let's let the navajos break the treaties look for get the trainees we need these people to help make america great again want to go to the original americans the original native people they know what makes america great again put knowing the white house well that was my thought we were driving through there is i wonder what they think of this notion of make america great again and i'm sure they're like nodding like. any guys messed it up you know that was great to white man showed up i mean basically that was the subtext i can just see the thought bubbles and innate into everyone's thought patterns are in there buying some beef jerky i think and. that's right make america great again that's right we told you remember chief seattle up in washington there's yeah madeleine actually if that's a fake speech. should never happen nonexistent. so you are

a member or do i i don't. but the point is that he warned against the kind of in this face of. the fake speech warned against ecological devastation brought on by white guys ignoring the mother nature and i think the white guys have done a good job of going mother nature just ask those folks in puerto rico or anywhere used in or anywhere else going devastated by hurricanes or tornadoes that's your sunglasses now because those are off put a little audience who can't see your eyes one eight hundred why he did it. one eight hundred why he did it get your freak. for mexico's it was just all the writing. on the cover of florida are we going to you know talk about stuff other than this the fake speech the fake oh yes ok so what i was saying is you know we had talked in the previous episode about puerto rico having the jones

act which restricts them for what they could do because they're from the outside if people don't know the history they can look at the puerto ricans and say why is there economy in a shambles they are no good they don't work hard enough but then you find out that we have these onerous almost like sanction like you know laws on them as a colony that they can't they have to import things via u.s. made manned and flagged ships in america when we're passing through navajo nation i was like this is the most stunning landscape i've ever seen in all my years driving across america and why don't they do something like eco luxury large lodges and charge people fifteen hundred bucks a night to stay here and just see this amazing landscape and you would see they would have a house like a trailer park a little trailer right there on the edge of a canyon with stunning scenery and i thought probably that in their treaty as like

basically colonized people there's some law that they can do this sort of thing that they are not allowed to have any sort of economic commerce. that's what i'm assuming an open air prison like gaza and the west bank. that is the american open air prison that's apparently ok so you get to start a hotel if you're in prison if i don't i mean i can't decide to open up a krispy kreme donut franchise a little rikers island because i think all the prisoners will love these donuts well i grew up in connecticut near the mohican reservation which used to be very impoverished now it has mohegan sun which is a casino which receives more visitors then any individual casino in las vegas so they are able to do things i don't know how they had to get some senator or legislator to overturn some of the treaties but i don't know what the treaties are here but in terms of the rest of the u.s. economy we are often talk markets find a scandal and we have talked to a lot of bears the sort of bears that room in the rockies those beautiful rockies

right behind us we're going to insert some sort of photo where you can actually see the rockies but there are the rockies right there and it's quite spectacular but this big giant cloud is covering it but that's a cloud of marijuana smoke. we have a lot of bears on the show who say everything is a disaster in the u.s. economy this is a story that is kind of god and reported so far on kai's report and that is the latest chicago p.m.i. explodes higher by five standard deviations everything is awesome again in chicago apparently against expectations of a modest drop fifty eight point nine to fifty eight point seven m. and i's chicago business barometer exploded higher to sixty five point two in september his the chart you see is exploding higher things are happening and in fact the digging down into the data zero has finds that under the hood it's also awesome prices paid rose at a faster pace signaling expansion new orders rose at

a faster pace signaling expansion employment rose in the direction reverse signaling expansion inventories rues in the direction reverse signaling expansion supplier deliveries rose at a faster pace signaling expansion. production grows at a faster pace signaling expansion order backlog zeros at a faster pace signaling expansion business activity has been positive for twelve months over the past year number of components rising versus last month seven so the chicago p.m.i. is saying that actually this. in the company the tempest area in the stock market is booming that is actually trickling down something seems to be happening at least in the latest chicago p.m.i. p.m.i. the purchasing managers index yes manufacturing internet which is another variation on the on the inflation index right on consumer index c.p.i. yeah and you know what is janet yellen but trying to don't. like an inflation index of the wholesale level yet so it's showing prices are going up right to play

leverage orders are increasing deliveries are increasing it's not just prices yet like orders are coming and people want more and they want this give it give it give it give it to us like things are happening ok so if the economy's increasing in velocity that we've been saying for a while that is double aussie that means that interest rates are going to go up because if the demand for credit is going higher than the price of credit that is to say an interest rate that's going to go higher if the demands going higher despite all the efforts of the central banks to kill the economy by keeping bankers solvent when they should have been declared bankrupt years ago the index is showing that interest rates are going to go higher this means two things number one property market's going to crash and number two bond market's going to crash the stock market might not crash as such but it will probably do poorly but interest rates have been the genie that have been kept in the bottle through now by some estimates twenty five trillion dollars worth of financial oprah that is to say

moving money from savers and workers to bankers on wall street if that starts unwind in an aggressive manner then the bond market collapse that i've been mis forecasting for five years now. many people have been mis forecasting it for thirty seven years well at least five years some ten years but every so every financial pundit in the financial punditry space has been wrong about bonds for a good five years but you know much just might be the bond pocalypse we've been waiting for to be fair none of them imagined that central bankers would get sued jury and blow away all the textbooks and do things like quantitative easing negative interest rates not at that was never in any realm obviously they weren't imaginative enough these people who were bearish on on bonds who thought that the bond market would collapse they didn't predict they never

could see into the mind even some of the like the the people who already see central bankers as crazy they didn't think they were that whacked they thought that was not even possible i never saw native interest rates yet and nobody saw of the e.c.b. which is especially the old when this bank and the german central bank becoming a money printing you know nut case given their track record with inflation that led to such a horrible horrible this was the last century but that all happened now you mentioned that if interest rates start to rise i want to quickly in the last two minutes here i want to know less than two minutes i'm going to mention that we're in denver obviously because you can see those. the rockies no you can't but the rockies are there so the u.s. cities with the biggest housing bubbles so we have the term housing bubble to describe the housing market that peaked in two thousand and six and imploded spectacular effects has been gradually fading out of use the current theme is that years of asset price inflation have healed the housing market and that the crazy

peak of housing bubble one is now just some sort of normal base oh my well he shows this is from wall street dot com and he shows this is one of the booming is towns in america this they kind of missed out on the last housing bubble this is two thousand and six this is their forty four percent above in real terms house prices here well that's what happens when you mix easy credit with marijuana. ok we've got people down at the bank. playing like smoke in a big bad doobie saying you know let me two million dollars for this garage my neighbor wants to sell me with complete with the price of coal and the bankers like . they have the credit munchies they get the credit munchies and then they you know the credibility is followed by the credit you know down the down slope on the down low you know get down on the down low you know i recommend if you're suffering from the down were trajectory post credit munchie credit default swap induced nightmare

play a lot of parliament funkadelic you know the funk or james brown because that's what gets you back into your funky space brings you back up good foot on that one we are the want. on that note we got to go the second half they were there. in the us a child can choose an army course in school. with retired officers as teachers we don't. recruit will says to you if the cadet is interested in going in the military but we don't recruit ourselves. the pentagon is funding a program to boost interest in the military among teenagers your chance to step up

to an apollo so that comfortable with yourself. things yourself you can't go wrong with the military it's a great stepping stone for whatever career you want to do but some veterans are willing to tell enthusiastic children a little more they ask me call of duty is a very popular first sure video game. it's play and that's because the military like call of duty to turn off call of duty oh yeah or you can turn off the war and lot of these kids just don't hear. the darker side does the pentagon allow them to be told or does it just need more recruits. los angeles the city of luxury and fame but also an alarming number of people living in the streets. the simple fact in l.a.

is there's just not enough shelter even if people on the streets right now decided to come in there's nowhere to come in it's been a struggle. this man phoned his own response to the problem and constructed dozens of tiny homes for people in need of shelter when you have nothing in order to go. you know having something like this may as well be a castle but do the authorities accept such solution. on a city parking space is not a solution. someone wanted touring the site otherwise it'll be a free for all they're a better alternative to end the homelessness crisis. welcome back to the kaiser report with me stacy herbert max kaiser is on the road with

stephen baldwin i am here with ellen brown author web of debt we get to speak in person we're up in aspen great to be here and we had altitude sickness and i didn't notice that the juice yeah i had some days i had it no dizzy so but you know you came in from los angeles and i want to talk to you about something happening there that you've been talking about for a long time and i know this because of my friend alex schaefer the artist of burning banks fame well he's been very excited about the fact that apparently there's some sort of legislation passed or a motion passed and the los angeles assembly about creating a public bank yes in the city of l.a. so be an l.a. city bank and when there are two big reasons for the push is that there is this big divest movement where they wanted to do it with some bunch of young people of

these young people they've got so much enthusiasm for the troops. because i was there when the reformers are. currently these people right here only here on whether or not an opioid. hopefully anyway so. there is a movement to divest from wells fargo of course as in many other cities which have actually passed what was it why were they saying we got to get rid of wells fargo ok because they did these two million accounts for one thing and they were forcing the employees to do this or else. leave and so some of those people were actually wells fargo employees. and so they managed to get. the city council to agree to do today divest from wells fargo but then the question is where do you put your money if you don't put it in wells fargo and so the obvious answer is a public bank really there know they're being set want. big city money any more that

you know there actually winds up well based on really lend their deposits and they use the republic and then you know they just they just create the money first and then if they need to liquidate liquidity they can go to the repo market or wells fargo is a california bank. i know they have the stagecoach on the side you know it's west that is a good point and the other thing that's motivating it is this whole push for a cancerous drink. january first cannabis is legal for the shops will be open for anybody to buy not just medical cannabis and so they're anticipating a seven billion dollar business and one billion dollars in taxes this is a thing that has gone so crazy since i lived overseas for twenty years and since i came back never things like amsterdam here. well that's in the states and then you had this fed thing see that their federal state. going to be very difficult to set

up a cannabis bank they've tried it in colorado and the feds have just they just want to allow it and of course you need to be in the federal system to be a bank. that was have a public bank they want to create there is a public bank in north dakota north dakota we have one on the wednesday don't bank california has a bank but it's an infrastructure bank it's not a depository bank it doesn't take deposits and so this create money on their books which is what we're talking about so this public bank in los angeles would take deposits there is two. lines of thought and that the bank of north dakota model takes like two percent. individual deposits mostly it's the state's own deposits so it's really a bank it's really a banker they partner with the local banks and then the local banks go out and find the customers and do they give low cost loans but they largely. operate through the

local banks and that's the model that we've talked about but if you're going to take cannabis cash that's you've got to change your model but there are a lot of downside to that too so they're kind of two factions still working that out so that state treasurer had a big piano. and setting up a state owned banks specifically for taking the cannabis cash because they want to tax money and there were many. great testimony but there were two opponents and the one that was quite compelling unfortunately it was that bankers association in colorado and he said we wanted those deposits i mean these are in that this is not a banker objecting to a public bank he said we really try to get those deposits and the fed wouldn't allow it i mean if you want to be in the fed. that was under obama's fad now we have trump but jeff sessions runs cracking down. get

worse. so it seems to me that the real answer it's got to be litigation or congress i mean either congress has got to change that or we should litigator and states rights because there are a lot of states raised issues right now the feds have really gone overboard in taking over everything that the states used to do like regulate banks for when you used to have a state bank regulator and now it's all but of course in the constitution many people like ron paul who's just outside the store right now he will talk about the fact that the constitution mentions gold and silver as money but really what it was about was about the states the federal government didn't want the states. creating huge debt that might draw draw the us into war as a nation because one nation one state goes bust and therefore if you're going to issue any debt it had to be backed by gold or silver so how does the public bank fit into that sort of model of not wanting to create too many overseas debt obligations or whatever well that would be at

a federal level but i think they should turn the federal reserve truly federal bank for me right now it's just. it's composed of twelve branches all of which are one hundred percent owned by the banks in their district led by the new york federal reserve which is obviously wall street so they pretty much control the banking system but. if it were actually designed to then required to serve the interest of the public not just preserve the banks so that we actually had a public bank i think that they should lend directly to the government it's been done before right now they have they have to they can only they can only buy government bonds on the on the open market which means that there was the banks or the the bond get their cut and and then what the federal reserve holds in terms of debt they return the interest to the government there's this whole concern about well even though right now we're at

a crypto currency conference so yeah i was just going to actually go to that because you're talking about the wall street banks control the whole monetary system here in the united states so it appears the people came up with their own end run around it instead of like begging officials and lobbying government to please change the law please let us have a public bank please let us have a more like get outside of the wall street banks we don't want to pay them a toll every time we engage in our economy what do you think about cryptocurrency in terms of what structures have you seen there i don't know how new or not you are and how long you've been following the cryptocurrency sector but how did instead and. do you think if it's ensure public bank model last. removing power from wall street well wait particularly interesting i don't know where you would actually put bitcoin per se but but the whole cryptocurrency black chain.

distributed ledgers ledger is that i'm not sure that you can even use a distributed the i mean i've read that different banks say that that the distributed ledger wouldn't really work for commercial trades if you're talking about one global distributed ledger because it's slow and expensive but you can have like sort of blocks of ledgers that then speed. each other and this would definitely simplify things i mean just for the banks' own interest they're doing it now i think there's seventy five banks that have signed up to ripple or whatever so and there's a wrinkle now i think you know there's a lot of lawsuits really i don't know. it's how they operate everything we can strawman with them and then talk about essential being digital currency which i think is actually a good idea from the point of view of the central bank currently issues five percent of the money which is paper money and that's it and then they have their

own digital currency but it only banks are allowed to bank with this with the federal well certainly with a block chain sort of system like i'm sure you saw because this is a sort of story you follow that the bank of international settlements central bank for central bankers recently just announced in the past few weeks like oh by the way there might be fourteen or thirteen trillion dollars more debt than we thought there was and that's because we forgot to add all these four x. derivatives and like you know like all of the block chain everything's yes so it would be marvelous that you could track that's a nice if it talks about this forty trillion dollars that have gone missing or twenty one thousand nine hundred. ninety i mean if you can't check it back at least you could track a forward it can't happen again you could make things transactions very fast so you don't have all this counterparty risk in different ways you can sure you could get rid of a lot of derivatives the derivatives that are all about changes in you know the

value of money just in the time it takes for a transaction here in the united states it's like the banking system is way less advanced than europe even india even or kenya yeah because they didn't have to break through this big in frustration actually coming back here from europe which doesn't have the legacy of the powerful very very power. for bankers even the united kingdom is not as powerful as the british as the english american bankers so here it's so slow like molasses and old fashioned. that's been the hardest to get used to being back here other than the health care system and i don't know why if people could understand like how much easier faster and smoother it is in the rest of the world i don't know but you know i don't see how jamie diamond i know he's leading a campaign against the coin is of i think he understands what the threat of laci and bitcoin is to his model. but you see it being stopped here where

if they had any sense they'd leave it alone pat i know i'm on a panel coming up next and the first question is what should the central banks do about crypto currencies well if the question is should i would say do nothing and you know that the market decide that but what they probably will do is either regulate it. for example the chinese have now said no more i see those which are the equivalent. initial public offerings but it's initial coin offerings which aren't regulated so and the security six and exchange commission i guess is going to regulate that and i think china's coming out with their own crypto that's. a lot of countries i think are coming out with their own central bank digital currency which would be good in the sense that it's easier to do fiscal stimulus good for them and it's good it's actually a good way to do the the dollar and we've only got five percent money anyway and

you're not going to i mean you have a rebellion on your hands if you try to get rid of the five percent i think but the ninety five percent is already digital and it's already somewhere in bank accounts it would be if if if the fed opened up both its lending window and its deposit window for the general public so that we could all bank there they've got a deep pocket we don't get rid of insurance we can get rid of that part of the repo market is that they are to service. people that have more than two and if you're you know that the funds and stuff that have more than two hundred fifty thousand dollars and they're looking for a place to put their money i mean they're just many more efficiencies you can get rid of bank runs and well that's a good way to end this episode i hear ron paul trying to get into this room take over our room here so thank you so much alan brown for being on the kaiser part ok time to read a bit here herbert report do you like that he did. that's. for this episode of the

kaiser for it with me stacy her m.x. guys i think star guest ellen brown author web of debt if you'd like to get in touch with us tweet us likewise report until next time. it's taken these children's homes. now it's ready to take their future. for. the volcano here could erupt again at any time. most people have a strong choice to. live in poverty. what's going to. put some a following a different. place

so i want to leave. that point that hope for a better life. here's what people have been saying about rejected and that it was you know i was actually just pull along awesome was the only show i go out of my way to launch you know a lot of the really packs a punch at least yampa is the john oliver of r t america is doing the same we are apparently better than bluebell things but i see people you've never heard of love redacted tonight my president of the world bank so take your. because you are going

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still. ok a. pro unity activists hold rallies across spain including in the cattle on capitol barcelona at the same time catalans in favor of secession launch a petition to pressure regional officials into declaring independence also. the president is the one that's keeping the world from chaos. president trump is a force for peace that's the message from the white house as the u.s. leader tweets that there is only one solution to the north korean crisis and it is not a diplomatic. and wiki leaks founder julian assange offers a blistering critique of journalism.