max it's almost like you knew my headline before i even got to it that is my first headline in fact the headline reads by big queen overtakes by gold as on line search phrase add big queen to the list of things denting gold's appeal bully on's rally faltered in the past two months as the dollar strengthened and global equity set new records while concerns over breaks and catalonia as push for independence fail to drum up notable haven demand now between surge is attracting investor interest toward the crypto currency and away from the metal the biggest online vaulting service said this is in the united kingdom and they say that crypto currencies have kind of dented the appeal of gold right all the milan eels who grow up online and with apps the app a condom a then a stand technology and they understand bitcoin and they're flocking into bitcoin and right now but going to market cap is about one to two percent that of gold ever

gold is worth seven trillion dollars let's call it a bit coin is in above one hundred billion of trying to get to two hundred billion but that's quite a gap in order to close that gap in order to see it going truly equal gold and market cap we're going to have to see bitcoin trade above one hundred thousand dollars a coin just to get just to get started i think to try to achieve complete parity it actually would trade higher higher than that but you know we've got a ways to go yet but we've made an excellent start in the first few years of because. i mean just think about the price rise kind of gives me the vapors like colin powell remember that is like oh there's no weapons of mass destruction do not look at the vapors son of a look well in fact on the screen you should see a chart here if all goes according to plan in the edit suite and that is the bitcoin outperforms gold you'll see gold is up eleven percent so far this year whereas of course. and has risen seven fold and according to google trends max

global searches for by bitcoin have overtaken by gold after previously exceeding searches for how to purchase silver last month the amount of gold changing hands on bully and vaults online trading platform dropped by almost a third from the twelve month average but it's not just milan else it's also bankers and i think bankers and hedge funders and wall street sort of guys other than jamie diamond of course allegedly he says he's not buying big coin but a lot of people on wall street are buying big time in bitcoin but it's an immutable asset that you can store in your wallet or in a memory wallet that could be worth a billion dollars you can have a billion dollars and it's secure and it's secured by the network and that point is being now taken on board by those looking for safe havens there are the family offices so-called you know these are the accounts managed for

a wealthy families all over the world they're now looking at bitcoin as a way to store a value they've traditionally put money into gold and other assets for long periods of holding part of a multigenerational family wealth once they start buying bitcoin that's going to be another you know trillion dollar market looking at this thing they've got they launched you've got seven thousand and they want to make sure that they have their billions out so you know if bitcoins market cap is one hundred billion it's going to have to go to hundreds of billions us to compensate just to deal with the saudi princes but we have not that much time left so i want to move on to a few other charts and i the next episode i promise everybody will get into what the c.m.e. in the futures contract and goals and what the parabolic moves and the stock market but also the footsie the jam back up they're actually going parabolic back up there but stock markets hit fresh as they continue to go higher after that but you see the parabolic move happening there. course it can continue to go parabolic longer

than any person shorting at as many have been wiped out many headphones have been wiped out trying to guess that this will crash well well you know some history on this so you have the financial crisis of two thousand and eight two thousand and nine market was trading i believe it was around fifteen thousand or so trade back down to nine thousand and once it got back up to fifteen thousand many pond and smelly folks out there were saying ok it's a double top that's it earnings are unsupportable the prices at these levels etc but then it just shahrzad to twenty thousand twenty two thousand twenty three thousand and that is in part to what i've been saying on this show now for several years to those who tell me that it's overpriced and will not go down. will not continue to go up and that is that the entire s. and p. five hundred being taken private these companies are being taken private to mergers and acquisitions they're being taken off the board there won't be stocks to invest in as we know that understand that in another five or ten years they're all going

to be private well you didn't actually know this i know for a fact but that is my next chart really and you won't believe it but it's from schwab dot com and it was an analysis that they had the day before hollowing so october thirtieth and it's the spirit of the season scary charts for investors and vanishing stocks as a section and this is under scary charts here's the chart and that is showing you the vanishing stocks falling numbers of listed u.s. companies the number of companies listed in the u.s. stock markets has been cut in half over the past twenty years going from eight thousand to about four thousand as you can see from the chart the disappearing public stock market is a frightful prospect for active managers left with fewer stocks to pick from and investors concentrating more and more their savings into fewer and fewer stocks so there you have it again that's the scary chart. it's fewer and fewer stocks in

which to basically try to poor all the assets of this huge baby boomer population retiring into the markets those half the amount of us stocks foreign stocks have increased by just as much but there you have it not right all this is executive talking about that the actual number of stocks available to buy has been cut in half and so in that that'll become half again if interest rates remain as zero percent looked at amazon's purchase of whole foods they did so with money that cost them the zero percent financing they quire amazon the earnings one were a creative they were a threat to the bottom line they start making more money they won they cost them on the financials zero and the market cap went up higher than the value of whole foods that is to say thirteen billion dollars on that purchase so here you have amazon that's already an entrenched monopolist that's an octopuses us giant squid penetrating every facet of the economy and it's being financed by money that they

can borrow in purpose perpetually and zero percent and buy anything without any trust regulations bumping into them whatsoever so then you apply that to maybe five or six giant companies and five years from now you're going to have just five or six giant companies their share prices will be exorbitant like they're a google or amazon this or a berkshire hathaway's the stock prices over two hundred thousand dollars a share so berkshire hathaway in five years of say the stock five hundred thousand dollars a share so in order to participate in the stock market and not be a wage slave your whole life you've got to pony up five hundred thousand dollars for one share of berkshire hathaway you know what was that berkshire hathaway shares when you were working out what i thought it my ira in one thousand nine hundred two it was two thousand dollars a share so that shows you how much that's gone up but again you mentioned that so i just showed you that chart of number of listed companies has fallen by half well even those that remain and you said that you know they. those have declined but

they will continue decline and here's another chart showing the evidence of that and this is the biggest buyers of u.s. stocks are who would you guess who is the dotted line the companies themselves those are called share buybacks you of course knew this you knew the answer because you've been talking about this that the companies have been borrowing money and buying themselves back thus boosting the stock price that's boosting their own christmas bonus for coming to the christmas bonus season all those other like nine lines there rest of world households have been declining in terms of ownership of shares and institutions have hold even less so those are like the banks and rightly so you know if you're an executive at a company and you work yourself an option to buy stock let's say the stocks are one hundred and you give yourself an option to buy that stock and if the cost for that offers a dollar and then you borrow money from the fed for zero and then you buy back your own stock reduce the supply of stock the stock close to one hundred two hundred

fifty so now your option that you awarded yourself for a dollar is that are worth fifty one dollars. in the space of one year so now you cashed out and now you've just made a quick billion two billion five billion dollars by something that just a few years ago was just centered completely illegal it not allowed to do that even a few years ago but then if you have your fresh billion dollars you can buy a u.s. senator or congressman for one hundred thousand bucks to change the law to make this game go on even further yes so when you worked on wall street in the eighty's it was illegal to buy back room chairs like this in the way that they're doing i believe so yes so everybody is often on c.m.t. see you saying you're missing out you're missing out missing i got to get in you got to get in but the only ones buying as you say everybody else is not participating in this rally this parabolic rally by donald trump as they're calling it the trump rally but it's all been in share buybacks. you know perhaps they feel

like maybe his cut cut cut tax bill is going to somehow help them or maybe that his fed because he's going to basically point five f.m. see members so they're going to depart to determine what the value of money is u.s. dollar so maybe they feel like they're going to keep it cheap may he's going to appoint some people because he's he's already on the record saying he likes cheap money he likes borrow cheap he likes you know here's a guy who's gone bankrupt many many times cheapening going bankrupt even cheaper or keep in mind that if you have a lot of money and you're buying stocks for two or three percent of the value of that portfolio you can insure against any losses so you can buy options and futures contracts on a million dollar portfolio and i spent two percent of that value the portfolio if the if the market dropped fifty sixty seventy percent you'd only lose two percent so that's what you can do if you have the wherewithal to do so if you're not in that category any put let's say ten thousand dollars of the stocks and there's a correction and you lose fifty or sixty percent it was fifty or sixty percent

that's that's the reality of it and then the time it takes to make it back to where you started from could be five ten fifteen years so there's a top. asymmetry if you don't have the where with all the hedge yourself as i just described then you're playing a loser's game and that's why less and less people actually own stocks those are getting priced out cut out the. price and meanwhile those who can afford the portfolio insurance insurance you could call it are are running away with it well anyway that's it for this episode i wanted to just bring your attention to those charts as we enter the scary season and the christmas season when they all want to look for their big bonuses. you know people are buying big queen they're not participating in the financial markets it seems they're participating instead in the bitcoin market and they're moving away from silver and gold and typically you know assume a big year end rally you know typically anyway we got to go to the second half don't go and stay right there.

will be war zone you on the idea that dropping bombs brings you to the chicken hawks forcing you to fight the battle. you saw for the tell you that will be gossip to topple. saddam off the bad guys and tell him you are not cool enough like their product. or the whole. order will walk. eating should just have to keep it as i live it he can feel confident. about it. nina. hardly need to. be young.

again. i wish we had one of things in the smiles and this is it well for everyone and why some peoples also take our things all the power just for themselves and to see how that. will. apply to many clubs over the years so i know the game and so i got. the ball isn't only about what happens on the pitch to the final school it's about the passion from the fans it's the age of the super money kill you narrowness and spending to

get to the twenty million fly a. book it's an experience like nothing else i want to be true so i want to share what i think what i know about the beautiful game my great so well chance with. and thinks it's going to. welcome back to the kaiser report i'm max keyser time now to turn to dave column is a professor at cornell university who writes a yearly year in review for peak prosperity and zero heads dave welcome and am thanks for inviting me this is this is one i get to take up my bucket list now that's fantastic how did we end up on your bucket list dave i mean i've been

following you guys for years. trying to figure out if your is kind of this crazy off screen as you are on but i don't have any data yet so if you're on a college campus and universities are ground zero for the new hysteria against free speech what do you think this is about including the attempts by the democrats and m s n b c to shut down alternative media voices on the left and arteta what do you think about this i think it's sherry and i think it's probably part of a. bigger anger thing across the globe a little bit i think the students are. in a good day notoriously kind of crazy but but now now because of this this this this blanket of hysteria it's got a point where i largely blame the adults for not finding a way to contain it better and cornell university of course is famous for a lot of student suicides more or less in the last couple years well i got even clarify that point in terms of cornell famous for dramatic suicides there the

suicide rate is actually below the national average. one things we did do enough as we put these mash nets underneath the gorges and so you can't actually jump the gorge and i actually think it worked i think i think. i think a number of the suicides of college campuses are kids who do something spontaneously so kid who jumps the bridge is conceivably when they walk on the bridge the first time they don't they don't realize they're going to jump that's my suspension in the nets prevent that from happening so it's like an apple factory fox come in china they get the the anti-suicide nets as a professor at cornell what are you a professor and what is your what do you do that what do you teach. well i'm an organic chemist specializing in the organic chemistry of lithium. and i teach or get

a chemistry both graduate and undergraduate i just finished being chair so i have been in the lecture room for quite some time. but i will reenter the last lecture and soon in my research is organic chemistry so so now you're it got kind of a side job if you all are you're well noted for delving into economics and people i need to have going to have got a video up now talking about price gouging which is kind of interesting so do you see a connection between organic chemistry in economics or economics it's just a hobby or it's what how can we what was the context there dave. well you know there is there is an odd connection i find that i find that thinking about economics which includes neuro psychology and various subdisciplines history . it i think it does influence the way i think about science and certainly. science influences the way i think about economics because because i spent

a better part of my day debugging things so ideas that were very complicated turn out to be correct and so when i look at the economists and they say something and i have this natural capacity say well i think you're wrong and lot of people have trouble looking at an expert saying you know i don't believe you because they say well they're an expert i don't defer to expertise comfortable right of course chemistry is what's called a hard science relies on of empirical evidence except for a whereas in economics it's a soft science as marcellus theological psychological do you agree with that. i do and i think that where goes off the rails is when it tries to pretend to be hard science i think it's some senses a subdiscipline of history in that. and that to me economics is you you asked the question you know we've been here before. what happened next and said ok

now you look you say well we've now got massive amounts of debt what happened next and then there's using answer out there in the distant past that people dismissed but usually the answers a good start and so i think it's a lot about history knowing knowing the past knowing how it. played out going forward ok so let's talk about what have any else south people that i think a sense of if your background in iraq's protégés and you've got a video out of price gouging and i think the premise of the video is you are making the bullish case for her. i scouting in areas that say that are hit by a storm and they the rates on the over taxi might go up a quite a bit and it looks like they're price gouging and say your position basically is that this is your bullish on this idea is that is that correct and my characterizing that correctly and going to tell us

a little bit more about what you're thinking that what goes into that thought well it is sort of a free market idea if you look at it you could disasters of the past. people rushed to the scene with supplies and goods and help and now we've got fame and i'm sure the three of us can all agree that it's seen as a disaster and then they're dysfunctional and if it's trumped good design fee will we be better off. and so anything that inhibits the flow goods and services into the disaster zone is problematic and price gouging laws which say you can't charge more keeps people from you know bringing a truckload of chainsaws and five gallon cans of gas and saying look we can help you and they have a risk and they have expenses and yet the price logic goes laski people from from do and if you do it you get arrested you're not coming back and so so i am a fan of not having price gouging laws i don't think local stores i don't think the

big chains will price gouge the p.r. stew but i think what the price gouging laws do is keep outsiders from coming into the area with goods and services right sell it talking about i guess we could call it the price discovery mechanism and if you're a market it got buyers and sellers demand it supply and there's a an invisible hand and a price is set by the price discovery mechanism and so in the case of a disaster zone the price for water might go up but if we're to believe in the free market in our free marketeers we need to accept this price gouging as a corollary of the free market and not sure it is that is that basically true. yeah and you know if people in hurricane areas found that the price of plywood rose before the hurricane they might start preparing instead of waiting till the week before the hurricane to go by their plywood know by their water go by their chainsaws and

a hurricane or two in which in which prices reflected availability and prices reflected the ballot. they were theirs and you know it's time to gave you examples of the woman who got the last generator do the generosity of someone who's going to get it and it was because her father was going to die and the point that i make is that any idiot who could die owing to lack of electricity should have already owned a generator that i was just stupid ensoul i think that i think price gouging was. not existing would help people think well maybe out of buy my book bought a water in advance maybe out of storage in the basement i keep a couple hundred pounds of relatively cheap food in the basement because you don't know what's going to happen you can have an e.m.p. you can have a ice storm you're going to have a cyber attack and and i personally would rather know that i'm not going to star over the next month because i saved myself one hundred dollars on the the face of it what you're saying there is

a logical free market needs to function in a free market society so my question is how do you account for or how do you balance or what do we do about the fact that in america if got a mixed economy if got in some cases the free market where prices are discovered by supply the man and then at the macro level you've got an institution like the federal reserve that issues the free market economics and instead impose a top down call of bureau like dictatorship in may in setting the price of money with their interest rate policies and causing enormous financial dislocation and hardship through. oh that form of financial repression as it's called are tearing me out how do we how do we get over the fact that in this economy in this country we've got two three separate belief systems working in parallel and we can't decide

which one to go at our way going to get out the path of socialism or capitalism we can't seem to figure that out dave yeah yeah i fear that we are figured out we're going down the socialism that. the federal reserve as you have stated there is a problem. to me the most important market in all of capitalism is the money market where people who want to either borrow or land money meet they had to lower the price and so if i'm willing to defer savings defer spending for a while not i have savings i'll loan it to you so that you can build a factory or something and so the price of capital is really the most foundational part of capitalism yet the fat decides that well we do not like what the free market is doing to the price of cattle right now so we're going to change that and so the fad is pretending to be you know the politburo in moscow and saying that the

price is wrong we're smart the free market stupid and we're going to set a new price and what you get when you set prices arbitrarily you get. you get shortages you get access to get malinvestment as you pointed out you get down you get a huge huge boost in the inequality so people who are in a position to benefit from from these arbitrary pricing do so and and then there's people who are just getting clobbered the person who's paying more for a loaf of bread that person is paying war for their rents rents have been soaring and writes. either say we've got about a minute left so in order in order to make all this work out. why can't we work a system where if i'm in a. or disaster style and the price of water goes up three or four percent or a thousand percent then that difference in price will be subsidized by those who are gaming the fed and extracting hundreds of billions of dollars from the economy

immorally illegally in a socialist capacity completely against the tenets of free market and america is saying i'm saying like i care i guess or your ear argument for price gouging but those who pay those prices need to get a subsidized by the fed who's a socialist mal actor and all this to make up for the difference so your thoughts yes i did i don't agree but i think you don't either that the senate shouldn't be competent lives right center jobs so shallow if if the prices went up a thousand percent when i guarantee you what happens next and there's a hurricane people below to buy a water cannot be run down there make some money and they would be a natural price arbitrage all right if we got a cut there out of time but hopefully you can stick around for another segment if that's ok you got it. right well that's going to do it for this edition of the kaiser report may max kaiser stacy ever like to thank our guest dave calm he's a professor at cornell university generates on twitter it's kaiser report and so

next time by all. prescribed medication is widespread on the u.s. market the. a frequent cause of death and up in my life i just felt like everything was ashes my family was literally coming unglued i had actually planned. to commit some sight what or who has made antidepressants so commonly used we were doing what

the doctors told us to do we were being responsible and what the real side effects . was chemically altered what i did was done on a cocktail of legal drugs. just because something's legal doesn't mean it's safe. i think. the old. coming stand. is they are not in favor of it made toys coming. out of the border but the other side i think if they came back the old repression of confrontation that's a mistake on the western side especially by the americans but also on the other side.

thank. you thank you thank you. thought. theory. for one theory. such an effort and says the us if it's free speech by forcing all t. to register as a free. already agents i think edited for time the response from russia is on the table. riyadh's power play in the middle east intensifies as saudi arabia the balkans yemen's defense ministry also being accused of declaring war on

lebanon and. cia whistleblower john kiriakou is removed from an e.u. parliament in the last minutes simply folk on post.