well i'll go with the big. gimme no it's this and then i'm going out to run eventually get the deficit in betty theo out in the us. by the spirit bogost i'm just trying. to. say yeah use on this wolf approach to some down time stuff for all of us hope indeed i must but i feel a lot of the behind of the out eat noodles on the c.d.'s the council going to the militia and government will. kill them all into it is the food out of this not so be this not to be but i mean. look and you'll.

get to live it up with others. oh hey there i'm max kaiser this is the kaiser report let's talk about credit markets. going nuts. it's almost like you peeked over here and looked at my first headline let's talk about it. this is what it looks like when credit markets go. like this right now at this moment this is it first also you the chart because this is what it looks like you see when you say look at you should have a visual for people to refer to t.v.

by the way. you know look it's visual can you tell what that is looks like guilds yet this this bottom one that you are quoting it is the u.s. ten year treasury yield this on the top during the crisis it was pretty high yields were high on euro junk bonds now they yield on euro junk bonds is trading is lower than the u.s. treasury so what investors are allegedly saying is that there's a greater chance of the u.s. treasury failing to make their coupon payment them the year old junk these junk raided european companies yes well. the markets don't why do they i mean the markets are saying that america has a greater chance of defaulting then european countries no european. but

knees these are job aghadoe not selling on the street somewhere this is like a medium sized enterprise in greece this is a bigger company in i don't know sweden you know so it's no well they're not in the euro zone so let me rephrase yeah the market is saying the u.s. has a greater chance of going bankrupt than a lot of european companies mario draggy is apparently the markets if you read the rest of the articles tomorrow drag. he is saying that he's willing to take all the risk on this bet he's basically doing a john chorus line he's doubling down saying none of these companies are going bankrupt if i have any say in it the u.s. cannot default on these particular bonds because they can always print dollars to pay on the trend near treasury well let's talk about the first sec yeah good because when

a country issues currency and then uses that currency to buy back its own debt that's called debt monetization and it's a prelude to hyper inflationary currency collapse. and america is engaged in debt monetization but they don't call it debt monetization they call it quantitative easing the difference is that in quantitative easing there's an implicit promise that they're going to unwind that debt that the central bank will not hold on their balance sheet forever since we've heard about quantitative easing the central bank has acquired many trillions of dollars worth of terrible debt and they keep promising to unwind the debt janet yellen keeps saying interest rates will start going up meaning they're going to start on winding this debt and yet that never happens in other words the facade of quantitative quantitative easing is a hoax it's a joke it's debt monetization it's

a prelude to hyper inflationary currency that is the u.s. dollar collapsing it has to be hyper inflating against something so if all of these currencies all of these countries all of these central banks are in debt monetizing then it's hard to tell they are all falling from a great height i posit that we are seeing hyper inflationary collapse of the dollar another fee at currencies against bitcoin yes not gold but won't they gold is a special case because they can control it with paper so as i said mario draggy is some say responsible for this you know this merrill lynch high yield bond euro bond collapsing so that now it's yielding two point one six percent. against the u.s. treasury which is two point three three percent as of last week here's another chart

and it's a tweet from daniel coll of the e.c.b. monster bubble e.c.b. these purchases are currently seven times issuance and this is what it looks like this is the huge gap in the euro zone this chart is from deutsche bank and the e.c.b. is buying up everything that's issued all the national bonds all the sovereign bonds across europe and some and beyond so seven times issuance across europe they're buying it up and gobbling up old stuff old junk well let's again look at history and let's look at the why more republic in germany in the one nine hundred twenty s. that issued and then bought back seven eight nine ten fifteen times the paper that they were issuing in a debt monetization scheme that resulted in a hyper inflationary collapse germany says that they remember dearly

the hyper inflationary days of the twenty's which led to fascism and they would never repeat that ever again but here is mario draghi who runs the european central bank which is essentially the bundesbank which is essentially the central bank of germany doing exactly the same thing that its predecessors to in the one nine hundred twenty s. that led to hyper inflationary currency collapse and the rise of fascism and their scapegoating their scapegoating r.t. our show for example rather than looking at you know so the e.c.b. began buying actively from two thousand and twelve what has happened since two thousand and twelve the rise of very far right wing parties the rise of separatist movements catalonia we see in italy that the richest two regions want to become independent as well. and instead of looking at themselves looking at all the evidence and the charts and perhaps what we are doing have some responsibility just

like in the past when we were you know there are different ingredients in it but it was still a monetary phenomenon that call it that came first and then the fascism and then the insanity and then the humiliation and the crises and the violence and everything that came with it so maybe they should look at themselves and said well these policies then in the one nine hundred twenty s. and now since twenty twelve and you point out the rise of right wing ultra right fascist parties and separatist movements was an attempt by the central bankers to bail out their friends yes and at the expense of the economy at large and in so doing the wall that income gap skyrocketed to historic levels which give rise to more separatist movements more violence in the street more lack of social cohesion as the economist magazine might call it it is

a repeat of the one nine hundred twenty s. but they don't call it debt monetization because if they did people would start jumping out of windows and saying oh my god we're all doomed instead they called quantitative easing because that sounds like you know much more user friendly of course comparing the one hundred twenty s. to today back then john maynard keynes did after the first sight treaty say like he wants nothing to do with this because the humiliation of being in possibility of paying off those debts that they were demanding from germany would cause. would wreak havoc that they don't you know they have no idea what's going to come he seemed to suggest that we saw the same thing in two thousand and seven through two thousand and nine and ten when many of our gas were warning the same thing that this. rescuing the banks and you know the elites can tell themselves all they want that by rescuing our kind cool really groovy friends who have progressive social

values that these guys are good they're just going to help you by saving them you can see the economy but what it created and we see that everywhere we look in the west everywhere in europe and the us where all these banks were bailed out as you see. class of people the bottom ninety nine percent who feel humiliated who feel angry and who feel better and you know it's popping up in different ways left right and. just crazy yes at the time we explicitly informed the public that barack obama was making a colossal and catastrophic mistake and george bush both of them by the way in the past week in the news in the us being hailed as great leaders and we didn't understand how great george bush was and we should have understood that we warned that by bailing out the creditors he was setting up for a why more republican like hyper inflationary collapse which we now see against bitcoin the us dollar is collapsing ninety eight percent against bitcoin and the

social unrest that follows the separatist movements fascism is run amok in america quite obviously corporations and the government using fusing corporatism has run amok corporate which is a user friendly way to say fascism. oh i think of fascism as being like the brownshirts smashing people's knees and like actually using violence to what is variance on our road trip across america hyper balik cops now here in the us ok we talked about european central bank mario draggy buying up all those bonds i remember at the june fourteenth meeting of the federal reserve bank janet yellen had promised that there from october first they're going to start to unwind q.e. and then on september twentieth they said again they reiterated that they were going to unwind quantitative easing they would shrink the fed's balance sheet i

balance sheet normalization. headline here's the actual data here's the actual evidence of the fact that they are not unwinding because they said they're going to star october first ok is the fed getting cold feet about the q e unwind last week the fed released its weekly balance sheet for the week ending october eighteenth we're now two and a half weeks and three weekly balance sheet releases into. the q e unwind period how much has the fed actually reduced its balance sheet total assets on october fourth four point four six trillion total assets on october eleventh four point four five nine trillion total assets on october eighteenth four point four seven trillion you read that correctly since october fourth the balance sheet gained ten billion dollars all of it in the week ending our tobar eighteen so i remember they were supposed to reduce for the first three months the fed's balance sheet by ten

billion and then they were going to escalate to fifty billion so they increased their balance sheet by ten yes as i've said on the show repeatedly all over and says janet yellen about balance sheet reduction are. lies lies lies it's a cannot taper a ponzi scheme janet yellen is bernie made off in a skirt you cannot reduce the level of phony money in the system by even a dollar without crashing j.p. morgan crashing wall street crashing the property market crashing planet earth economy and also keep in mind that janet yellen and mary are draggy and kuroda and mark carney in the u.k. i forgot about weren't together her and the global central bank balance sheet is skyrocketing in debt we now have three and

a half time gold bull g.d.p. in debt thanks to debt monetization by central bank oh well stay right there. the goal was rock. the boat. what holds a hinge to shut it up to. put themselves on a lot. to get accepted or rejected. so when one of the first injury. or some water rushed. up to the right to be first to see what the floor three of

them or ten people that the bible understood was in the waters of. the ship. about your sudden passing i've only just learnt you worry yourself and taken your last wrong turn. you're out caught up to us we all knew it would i tell you i'm sorry i could so i write these last words and hopes to put to rest these things that i never got off my chest. i remember when we first met my life turned on each breath. but then my feelings started to change you talked about war like it was again still some more fond of you those that didn't like to question our ark and i secretly promised to never be like it said one does not leave a funeral the same as one enters the mind gets consumed with death this one might

differ. speech because there are no other takers. to blame that mainstream media has met its maker. welcome back to the kaiser report imax keyser time out to talk with michael pant. port dot com the oracle of secaucus was already thursday are you take two is where i live i should say that really my office is in kohl's nick but i live in the oracle of cold snap yes the whole snack colts neck oh well that's a neck of a colt oh fantastic neck so i hear this from donald trump your wardrobe this must be a bull market because your wardrobe has an uptick yeah i finally upgraded to cufflinks if well these are like very fancy cufflinks and you've got the initials on your

white collar shirt there were the michael pentode m.p.g. drawers my middle name you took the triangular shape there i don't have a big coin but no i don't and the year who's dressing who's right is like i've. been a lousy right he was not a b c today talking about bitcoin and he said exactly why it's great he said there's no such a bank there's no bankers involved there's no regulations and that's why it's great but for that reason he thinks it should be a thing just like enron even though enron was heavily regulated it was fed by the free money from the central bank and imploded because dimwits like while the wad who got bailed out in no way you got bailed out by you know when i call stacy and say stacy intervene there's something with i wasn't good ali what he wadi i was saying something important about your time worth it from all this is st jude this is a st st jude tie when they do that who's the maker of that title organization started

by oh my god i can't believe life of danny thomas danny thomas or organization for children with cancer and fantastic and some some people don't even use it but yes they take donations they get a hospital if they can. ok fair enough let's move on enough of this and cure is very depressing so far interesting so far so forbidden point in st jude but saints was a great cause so low they pray to big calling those kids would be a lot of wealthier today then they would be had they just relied on donations from you know cranes neck new jersey stockbroker range that flexing their muscles that mean my going to get known so my girlfriend to aside from being there say you know you put out some great research or you've got a piece out right now you can look it up lemmings in full gallop toward the cliff talking about. how the stock market is potentially poised for a bit of a poll. but you are also you know you manage money so you can't you can't fight the

tape yeah right so the model portfolio is done well the last couple years but that doesn't mean that i'm not scared out of my pants or what's going to happen i think i don't want. no i pad man who are usually those weinstein arrow we can say things like that i guess i guess max you know if the deputy of north korea says we're on the verge of world war three. that's a reason to take the market's all time highs and the reason is the matter what you can throw at this market how about this of. q one earnings year over year fourteen percent q two eleven percent q three chord into fact set not michael pence a one point seven percent year over year earnings growth world war three lack of earnings growth. slow slowing g.d.p. growth nothing seems to kill the market and i guess this proves that if you print fifteen trillion dollars and still on the pace of one hundred twenty billion

dollars worth of counterfeit confetti every month from global central banks nothing else matters but that and i got to say this man this it drives me crazy you know janet yellen and the fed kind of admitted that they have no idea where inflation comes from even though they've they pray to the god of the phillips curve they still have no clue where she mentioned that her last us yet you know we have no idea where inflation comes from maybe we've got to rethink our models but where did all of the trillions of dollars go that they've printed well want to look at first let's look at the housing market six point one one percent annualized over the past five years the stock market's now at a hundred and thirty nine percent of g.d.p. normal is around fifty or sixty percent decade after decade the stock market capitalization is fifty to sixty percent of the economy now it's one hundred forty percent of the economy stuff right there i want to dig in the way you're talking about here so you say in your report. that this is not like the typical nine hundred seventy style inflation that drove the c.p.i.

which is the you know in the price index because they were price index of fifteen percent and of course wages one a lot are. my big question is get into some of the mechanics here because we talk about this on the show am curious what your expert opinion is in other words when they print all that money from the economy and causing price inflation right and wage inflation but now we're in an era when they print lots of money. and mechanically why does it bypass how does it bypass those areas ok so when i mean so when would a central bank controls normally and some at the fed the normal mainstream central bank see c b b o j they buy assets from primary dealers so the credit from nothing by fee or by decree they buy an asset from a bank now the bank has this credit now they've they've lost the asset well what do they do they can either make a loan to the general public which increases the broader money supply which causes inflation or if the public is debt saturated as we are in the case today you know

household debt is a record high corporate debt is serves there's really not the demand for money what do these private banks do they buy assets they buy more bonds and that is why is one reason why there's eight trillion dollars worth of negative yielding sovereign debt and one point six trillion dollars worth of corporate debt a corporation can sell a bond and pay you back less in principle. that's because central banks and private banks working together ok and they and that's were all so let's just let's wrap everything up in a nice ribbon where did the inflation go where to go it's not that the money supply doesn't matter anymore that's by the way it causes inflation an increase in the money supply the money supply would ever growth there is has all gone into real estate bonds and in equities ok now this is reflected in the chart tracks money velocity correct because velocity is the what you're talking about normally that money that's created will be lent into the system and then that's

a real inspiration as in the base money in the broad rag and then we see that collapse is collapsed right now you said also something i want to dig into a little bit here you said because there is not any real great demand for credit right now i want to explore that for a second because in other words there are millions of small businesses across america and it's the number one driver of economic growth in america and employment growth right and they all want credit so how is it that this is portrayed as there is no demand for credit well a business is not going to take a loan out to expand the productive capacity if there's no demand from the public so the public is not going to buy their goods and services why would they expand but the consumer do spending. on this they are spending i'm talking about you talk about the ratio between the central bank credit and the broader aggregates ok that ratio is collapse i'm saying there isn't my supply by the way is growing we're

growing at six percent year over year on them too so there's no money supply growth and there isn't that there is no inflation i'm saying the nucleus of where that inflation has gone has been into asset prices and so there's no inflation i said that's where all the right but listen lion's share but the reality of them i had a car wash somewhere in the middle of america and it's doing well people are buying cars through right and they get those cars washed and they are cash busy. it's a money making business it's a fairly robust business the car washing business i want to open a second car washing business and so you're telling me that there's no demand for credits no money i should say and say no demands in the relatively speaking in normal times instead of in the in the inflation that we had in the seventy's and if you look at other inflationary outbreaks across the world the demand for money is equal commensurate with the build up in the months every base it's not the case today we're seeing less of a demand to get a loan from a bank and more of

a demand from the private banking institutions to buy assets that they are they're more interested so easy for them just to take that money used you central bank you printed money and you've taken away my bond you've taken away my stock you've taken with my corporate bond i'm going to buy another one because that's where all it's of mania it's of athena and this ok where all the money is going to most i'm done trying to bring this message just like the mainstream america said other words let's say there's approximately ten million millionaires in america and approximately last nights they spent there was probably ten million and in other words so they have a lot of purchasing power they make a lot of money they have big stock portfolios and so the banks are service saying the population part of the banks customers are acid buyers the stock buyers part of them are small businesses at that local bank level are banks by gazing in what you're talking about essentially favoring those who are the investor class over

those who are the working class. is the great question you know the answer i mean class is being eviscerated ok and that is only intended these banks are between the very rich and the very poor is growing not only in this country for a cross the globe listen as a nation we have total debt so you look at total debt three hundred fifty percent debt to g.d.p. it's never been higher that's pretty much an all time record high. that is why there isn't a demand for money out there people are borrowing money to start businesses they're not even borrowing the cash out of the house in the same rate that they used to ok that used the house as an a.t.m. this money's being hoarded by primary dealers big banks. to buy stocks and bonds and blow up their balance sheets but my point is that and by by hoarding the cash not only are they causing markets to be stretched evaluations that are unsustainable and unhealthy but there are essentially depriving their leaving out

of the economy that money to grow absent as right years ago is poor the demand side of this is wrong to say that there's no demand read it no demand for the newsletter for granted is relatively less i mean there's a demand for it but the barriers to access that credible both can be true maxwell can ok so is fourteen point two trillion how in household that all time record high never been higher ever in history of ever ok so that's that's attenuating the demand for money but also banks are making decisions do i go out there and make a loan to grow the economy or do i just fatten up my balance sheet and that's what yeah ok that's the point i wanted to articulate yes and i just wonder why did very well i would like to say that a guy who uses a word like continually it ends up wearing expensive silk shirts and ties like this ok i don't use a word like attenuated and i have the same time now for seven years now ok so. what about this idea we've got going at you can i first second segment i would love

to so we've got about a minute and change left i'm just looking at stacey now she's in the director's chair and she gives you know only joking she does love yelling cut for life. so let's go on to the circle to beast to fit the square you would say square the story i want to square the circle circle you know that something has to give and of course people to the u.s. dollar as potentially vulnerable in a scenario where printing printing printing printing but the dollar is not collapsing there is no hyper inflationary currency collapse in the last you were to look at the dollar versus bitcoin. everything very. well i'm going to have to say what i want there it would normally be the case if every other central bank on the planet wasn't more insane than our fed is currently going to continue this in part two we've got to say goodbye for now ok all right that's going to do it for this edition of the kaiser report with me max kaiser stacy herbert want to thank our

guest michael pena port dot com if you want to catch us on twitter it's kaiser report until i stop by. when i'll go. big. is this sunday i'm going to run. out of sitting but he theo i know there's no subtlety but i was going to borrow his temperature. yeah used in this will surprise you sometimes i want something to go much but if the i want to be behind of the out. she just the ground she don't need the militia

i'm going to. give them a little bit is the dead of this going to be this going to be but i mean. look you. get to live it up with. here's what people have been saying about rejected in the senate is full on. the only show i go out of my way to lunch you know what it is that really packs a punch to sleep yeah it is the john oliver of party americans do the same we are

apparently better than food. and see people you never heard of low down to the next president of the world saying so very. seriously send us an e-mail. coming up on our team america classified government documents around the j.f.k. assassination are about to be disclosed but will we learn anything new. then president called the opioid epidemic a national health emergency find out what that means for federal policy on opioid medication. and a ban by twitter are now affecting this network all of this and more coming up on our team america. it's thursday october.