on the horizon and that this is going to be negative for bonds and markets you know wall street and main street time to go at odds with each other what's good for one is usually not good for the other and if wall street's going to take a breather with rising rates and falling stock and bond prices that would generally mean rising relative strength in wages so those are the voters that put this guy in office back in twenty six tame and they'll do it again in two thousand and twenty if wages are going up twenty eighteen is a little bit more important best than midterm elections coming up to september this november so we'll see what happens there but here's another tweet regarding the markets and the economy and this is real another five billion dollars into e.t.f. last night brings january total to seventy eight point six billion dollars which destroys all time monthly flow record by eighteen billion dollars or thirty percent this is nearly four billion dollars per day pace retail investors are pouring into

e.t.s. you know they really love these e.t.s. the two the top two recipients of the of these funds flowing into e.t.s. where state street's s. and p. five hundred e.t.f. and then i shares s. and p. five hundred e.t.f. so they're going for the s. and p. five hundred eighty s. the next the previous largest inflow of e.t.f. funds was in december twenty sixth seen well it's very dangerous because this a multitude of e.t.s. would have the same stock in their e.t.f. so you'd have multiple claims on the same stock it's a fractional reserve model and so if there is a downturn let's say the market dropped twenty twenty five thirty percent and there's liquidation and you try to liquidate these e.t.f. and ten or twenty ts own the same thousand shares of i.b.m. or general electric or microsoft which one truly has no share. there's none of them

have it for sure and it's a compound ing of the cascade as it drops down into a black hole called a damn a bull market catastrophe sucking sound posing as the grim reaper as they rip aisha's sleaze steal from the millennialists their hard earned cappuccino money in one flail swoop due to their over exuberance brought on by the cheap rates engineering by the central bankers who have no accountability other than their academic overlords who write keynesian based faldo are all in their textbooks based on theories that have never been proven and all was end up catastrophic lee well of course they've been a perfect contrary in indicator these millenniums they have stayed out of the market since two thousand and eight in fear for a crash and now they have finally gone long as we covered in a previous episode they somehow believe that donald trump provides some sort of insulation i have no idea what they mean when they say they think he provides

insulation to the markets nevertheless this is what they're pouring their money into e.t.f. now as somebody selling to them just like working at donald trump rubber mask in a best of all throwing a toaster plugged into the wall and saying i don't know why i got electrocuted i have this donald trump rubber mask on wasn't insulated there is another interesting story out in the past week as well and that was from china and zero hedge covered that chinese stocks tumble as hong kong officials monitor surge in a.t.m. withdrawals parent li there were reports of mainland chinese. citizens arriving in hong kong with like up to fifty bank cards so they would go to machine after researching and withdraw hundreds of thousands of dollars this is been happening according to the hong kong monetary authorities there have been a few robberies they say of people. mainland chinese with having hundreds of

thousands of dollars stolen so there seems to be some sort of capital flight situation we don't know of course a lot of information that comes out of china is hard to interpret well this is as much to do with money laundering a capital flight the liquidation of stocks crypto currency and now mass a.t.m. withdrawals suggest more is going on than the usual pretty new year liquidity hoarding there's a mad dash for cash because the thirty eight year bull market in bonds looks like it's coming to an end inflation is upon us and bond prices are going to fall they're already falling yields are rising of course i've been saying this for five years and others in the financial punditry space have been saying this for five years and i've been wrong for five years so with that caveat i will infallibly once again say without equivocation that i could be wrong again that the bond market will not crash this time it will continue yields will go even lower and negative

yields on various bonds will increase from the multi trillion dollars' worth of negative yielding sovereign debt now the even more multi multi multi trillion dollars of negative yielding sovereign debt and we're going to go down the rabbit hole even further but it's certainly smells like what the panic cash withdrawal in places like china and with the sell off and all these various markets and what the oil prices climbing higher in gold looking better than we've got here an old fashioned reversal it's a rotation and well i want to actually turn to a tweet now that you posted yeah and this is a tweet i found interesting you also sent me some text messages guys over yes but this is a tweet from alex letter so people can go there and look at this and that is max keiser store of value plus liquid means of exchange it's got utility and it's a great investment it's portable fungible divisible and desirable yes that's more of a laundry detergent. and if you look closely you can see that this is

a photo from a u.s. supermarket somewhere the laundry detergent has to be tied down secured with locks and it's not just a marketing gimmick because it's called tide now i didn't mention but even though you could see it i don't want to promote them to that even though the well that's a big in the news a covered people are eating and i forgot to add edible on to that yes at a final edible about this we've covered this actually before lauder detergent like this in poor neighborhoods has been a currency for years and years it's you go in there you snatch some of the laundry detergent and it's highly desirable which is any currency is desirable portable fungible divisible and this is what in the ghetto in the in the slums in the poor areas is used as currency and entrepreneur can go into a bodega oh they can snatch some of this bodega but they go but they go out of

the but they go into the bigger and they have a nice british is sandwich e.e.o. and they run out of the shop with their per law and law detergent you can quickly exchange for a little crack or something and then mark that up for a few bucks and you're not for sure you're on your way to being the next on trump i think trump this is where you got to be where it is actually all of those tied together in the next headline because we have deutsche bank which donald trump owes three hundred million dollars to we have crime running away with ill gotten gains and we have a fungible transferrable get out of jail free card for these bankers and the headline reads from reuters business u.s. c f.t.c. orders deutsche bank unit to pay seventy million dollar penalty penalty yes well this is a c f t c and they have basically fined deutsche bank a civil fine of manipulating that is the fix benchmark between january two thousand and seven a may twenty twelve so you know may two thousand and twelve long. after they

appeared before the public and prostrate themselves and said we'll never commit these crimes again we will never commit these crimes again well of course that is the fix market is a many many many trillions if not quite jillions of dollars mark and they rigged it for their own benefit to profit for the bank to profit on their own derivatives positions so here they are paying a small fine we don't know they didn't they didn't say in their statements how much they gained from regaining is the fakes but they're paying a seventy million dollar fine and to the ordinary person who's running off with some laundry detergent as their own fungible transferrable trainable currency well they think well seventy million dollars well that sounds like. that's like thirty five three hundred fifty thousand gallons of liquid laundry detergent as you point out this is coming after all these banks promise not to do all these crimes again going back to the two thousand and eight period you know what index or fix hasn't been rigged is live for forex gold and silver now multiple banks have been finally

era vocally area few to bully convicted or frowned to be guilty of fixing those prices and they pay a fine now if you apply the same justice to the people that were stealing the larger detergent from various shops in the ghetto you would go to them and say hey man don't steal everything from the store and they would give you like ten bucks and say here's my final ten bucks fine leave me alone don't don't bother me i got stuff to do and then they would do this crime these prison population in the cost of persian population would die would go down substantially if they apply the same sense of justice to people stealing stuff from stores as they do when they allow banks to commit larceny and wholesale theft willy nilly without any deterrent whatsoever think of the jails would be only half empty or a quarter empty just all you know charge people a small fine and allow them to go steal from your moms and grandmother to pay that fine like the banks to pay the fine it is by. steal in the open market from each

other from the public from their families from donald trump they're serial fraudsters and that's what they used to pay their fines and the regulators say i love you so much for the way that you're abusing me because i'm a child and i don't know how to respond to the way that you prank or temps illegally. you know a serial repaste us but if it wasn't for fraud there would be no economy and we got to go to second have to go away stay right there. ran out of the close to the first out of the tilted. to the

concepts was preparing to perform i had to actually prepare myself to die i. don't know said he'd well. sorry trust me. i don't give a slow and homo stuff her. scanty was. she had the goods sewed on. so we'll see if you think. what it was that he could with us to. yes get the permission. to finish the. b.s. get.

some on my boy and. have become good in our culture we have children grow up playing. on the computer this boy has somehow been to mystic cited as entertainment to russian there's nothing funny about it if this show is serious russia will be the last to keep the nuclear weapons because russia regards nuclear weapons as the bow. against inflation no more like a superior competition for. welcome back to the guy's report imax guys are time now to go to chicago and type with a mish shed lock of mish talk dot com miss welcome back there pleasure be back on macs for saying some fireworks their little. one i think that's going to do to all

the. european shorts own volatility how you get smashed on his droid racks yeah that's an interesting idea there is ban a trade on the for how few years now in the head trying to community in particular where they are short volatility they're short the vix and this has been highly profitable for a few years and the vix made a huge leap on the upside and i guess what you're suggesting there is you've got some blood in the street now at that particular trade where it was so where do you see this market going mesh and depends where they typically what we've seen is just a one day pullback and then renewed highs we're seeing market down a few days in a row of dollars we're talking years down far more it's not sure where it's going to close that's that's a pretty significant moves down over three hundred points couple days ago so we're

seeing the start of something here ruble what these are hedge funds or during max as their attitude is whenever volatility sparks they're just short more and more of well max if you keep doing enough that you're eventually going to get blown out of the lot and i actually think that's going to happen right there say martin gail system of betting yes that's exactly what it is yeah get it out yeah turn it out yeah you're constantly doubling down on a betting out red at the roulette wheel with the idea that eventually you will when before you run out of money but this is what yeah better environment where you can borrow money from the fed at zero percent interest rates. and you can borrow virtually unlimited amount of money from the fed and zero percent interest rates the martindale strategy of betting is a winner because you never run out of money and that's why we've seen these incredible dislocations in these markets and a collapse of capitalism as we know of the let's talk about g.d.p.

the atlanta fed says a q one twenty eighteen will show a pretty remarkable five point four percent growth your thoughts pretty remarkable . how about in a remarkable attard oh i suppose by some perversion it can happen i mean you are not responsible for being able to measure this thing they are good at what we've typically saying three hundred rower or maybe even four out of pocket you know when a parent comes out early and they. are only in the early to start of the quarter with these remarkable forecast you know they were they were worse than at the start of the last one was again a two point six dollars five point four percent i look at every time these reports come out max that i have you know as like i'm betting on a spread you over underline it at a football game in the n.f.l. and i made my typical comment here about the atlanta fed model it was a own take the under way are under you know if this is an all rounder bottom line

and the line is five point worse than max i don't thanks well it does courts and some inflation and we've had a thirty eight year bull market and bonds going all the way back to one nine hundred eighty volcker was a federal reserve chairman reagan was in office and we've added a bull market in bonds ever since then and we have a zero wrenches traits we've talked about in some countries dial interest rates are negative but so the question is whether a stab climbing higher is this finally the end of that bull market way say they're mish i don't know but i don't. thanks though the polar climbing go gross has claimed i believe this is the third time now max the end of the bond bull market well maybe he's right this time but maybe he's not certainly we're seeing an inflation scare if nothing else here may be the real deal and maybe the real deal

for a while maybe the real deal for a quarter but what happened was. the fed hikes once too much starts a recession as the next recession has baked into the cake they're going to blame it on the fed for hiking one time too much and that's not what's going to have done it it's going to be all the excesses the fed has created in this bubble just like a credit the dot com bubble in the housing bubble and now the everything bubble maxed so i agree we're going to say are we raise rates one time to manage or probably blame it on they the. new incoming fed chair by all by this this was baked in the cake either janet yellen. baby steps just as greatest band did until adding bubble finally blew up did the same thing under yellen so what's going to happen though here this is a question max if we get an asset bubble if stocks are falling and more importantly if commercial real estate and all prices start falling again what second to do the

bank profits the second to do their gallery then we're going to become banks are going to come cap on terror or we're going to be in the same situation or similar situation we were an in two thousand and seven asset prices prime no one wants to buy loans borrow money so. what's the fed going to do during the current rates that's how i see it and actually if the asset bubble gets big enough actually think we're going to see outright deflation so do they fed's move maneuvers to prevent deflation or what's going to cause it ripen right after that many times they. fed's attempt to fight deflation actually causes deflation and de bread flour all this jumps and on twitter and says that's crazy talk but. you know that that's exactly what's going on but let's return to this martin gail betting theme which is that you can keep doubling down on a bad bet until it becomes

a winning bad you mention that stocks pull back on a one day situation then hit new highs you talked about the housing bubble in two thousand and six two thousand and seven it looks like a returning to that kind of era and all of this if you were to point to one common theme or this source for all of this global asset inflation and you'd have to come back to the bank of japan you know bank of japan has been the go to currency the driving this entire bubble a nomics and the top of everything and now they've recently said mesh they're proposing to spend quote unlimited amounts buying their ten year bonds a point one one percent so if that is that still if they're going to still doing that meshed and then the yeah this is just going to continue on for a while right there wasn't even a new announcement max foster funny thing they came out inside and three days ago right i haven't i haven't we heard this message your report now and did we debtor i went back there and i looked and i found

a they said the same thing in our financial times report it was our biggest i think last year when they said their profits not report that somehow they've drawn the line exam x. it's zero point one one percent i sat in my blog yesterday and i said what's the message here that is that i am can't stand it any one basis point rise. in bond yields are ten years as a g.d. ten year note in japan must be really attractive at point one one percent have all of these fund managers you know. in japan want to hold on to these things no one else in their right mind has them anywhere else in the world so out. as you know bro i did a sarcastic post maxim on my blog and i said i didn't write as japan you know strategy you know just buying all of these at this floor was

a ruse do it max go out there and just buy every pot why not they you know of course some foreign managers might not want to give up those attractive yield one point one point one one percent yielding bonds on ten years flies though the way they can get them to release them max is if they tax and they want to hold bonds that one percent wow these guys are losing a percent a year on these banks we're going to blow the banks in the math and math bank of japan can buy them all up every one of them now looking to beauty of this max we can finally test m.m. to a monetary theory that the government spending doesn't matter and we all want to ourselves after they buy them all up they can cancel all of the debt null and void let's do it max what do you say let's test m m m m see now what do you sell the fans at the

highest at the g.d.p. they got the highest at two. versus you know their central bank oh ok canceling it now yeah well yeah and so all the growers are going to buy of all these bonds bonds cancel that debt marry start with a clean slate let's do it let's go for it and i propose one more step was around why don't they just buy up all the debt of corporations so given those are buying all these stocks well you know it was is what the swiss national bank yes by all max this is what mt sounds really can do i'm ready for a test well i made ok. just a follow up on that the reason why the that the problem there is that these deaths have been re hypothecated and pledged against other assets in banks all over the world so cancelling japan's debt would in effect put the global economy into a freefall and it would immediately come to

a grinding halt because of the fraud that happens on the set of you know that max and i'm no add a remark that i that this isn't about the m.m.t. thing or say oh yes isn't. this let's mills a class give them let's give them their i want to before we have to leave now let's talk about something that's i think the most ridiculous lay off the charts nonsense i've seen in quite some time and you know i know you tweet a lot about because i talk a lot about decline you know you see big point as being a fantastic all and not worthy of comment but compared to this story mesh it makes a big clay look like a triple a gilded bun ok in your own state of illinois they have a plan to fill the pension black call by selling under seven billion bonds and then using the proceeds to buy stocks that are now all time highs i mean this a what are you smoking over there in illinois i don't know max we talked about this

a little better a few days ago out there. it is kind of amusing when i proposed i don't know what their idea was going to flow on hundred seven billion in barns and they're going to use it to buy stocks now my guess is the interest rate would be seven percent probably greater i think the bar market's partially right now but let's assume they could borrow these things at six percent they would need to have a sex percent returns just to bring you my proposal was some of the bank of japan was most to buy those bonds and do something different you know you don't throw billion dollars in the month on next. that's not going to sign we're going to iraq i got never made a fortune next month they're already going to docs i know that's not what they want to do they want to buy this money and do the same wall behind me where i don't know why it is pensions or about forty percent foreigners are actually it's worse now i believe that's what the clients but the next downturn is going to kill oh yeah we

get it. again by mess we gotta say goodbye we're going to pick us up and right that's we always run out i know because you know you've got a wealth of information but we just are out of time thanks for being on my pleasure max all right well that's going to do it for this edition of the cars are it for us i mean ask as or as stacy ever like this i guess mish shad luck if you want to find us on twitter go to kaiser report on twitter yeah until next time. despite its turbulent history. has dominated international sport however this is not about the use of those champions from the. right on the shoulder of.

the room we'll be there with the board because you are going to do through this go through what would you like was the first to be reserved for you if you were the first some of you to limp with nine hundred fifty two with a clue did seeds of a concentration camp prisoners and from slime soldiers put your baby in the good we here with your shoes because you are much too good to be sure you can give me because you're worth but you're the one who. i'm going to put out a call with you if you think that we're going to look at. those shoes you'll push through for the group of. enthusiasm moved over when you do when you're at the ocean we're going to do three you're there with a few winters here we are in the woods guys you know can we.

win gold may get us manufacture consent to consistency of public wealth. when the ruling classes protect themselves. with the financial merry go round if assume even one percent. of time we can all middle of the room sick. from the real need. that's in american interest to not see any russians die in terrorist attacks as it is in russian interest to prevent any terrorist attacks in the united states or elsewhere in the world so i don't think there's any dispute on that in congress and i think maybe some of the posturing is frankly political as opposed to substantive .

well i. was not. done. i'm glad i'm not in. the headlines on the international the french defense minister says. evidence to prove the syrian government has used. for general elections far right supporters clashing with police in

a city that suffered a racially motivated shooting last week we hear from the increasingly popular rightwing northpark. with homes. in the next election the people use it. and this is the only way. to movement it is accused of sexual misconduct by two men. i see joining us here on r.t. international just now eight zero one on saturday morning here in moscow. the french defense minister says there is insufficient evidence of chlorine gas used by the syrian government that contradicts previous claims by a number of western officials including france's foreign minister when i designed

a guess you push jesus you are higher. level but do. absolute. results do kill. the french defense minister saying that there is no reliable evidence to suggest that koori mail was used by the syrian government contradicting what we heard just a few days ago from the french foreign minister who had stated that that chlorine attack it being carried out by the syrian government. in the syrian government has been accused of carrying out or in attacks in areas in the country in january it was accused of doing so by a number of groups including the syrian observatory for human rights which some people have questioned the organization which is run by a businessman in.