israel strikes twelve targets in southern syria after damascus downed an israeli fighter jet for the first time in thirty six years. meanwhile turkey's president says one of his country's military helicopters has been downed near the syrian border where he's carrying out an offensive against kurdish militia. thank. a far right surge is causing concern in italy ahead of a general election anti-fascist activists rallied in several cities after six african migrants were injured in a shooting. and kim jong un's it sister invites in the south korean president to visit north korea in the latest sign of improving relations between the two countries. for the latest on the stories you can head to our team dot com stay with

us now for the kaiser report looking into the ongoing turmoil on the global stock markets. i am x. cause or this is the kaiser report let's talk about the overall economy how's it doing max we're talking about the g.d.p. now forecast atlanta office of the federal reserve predicting a five point four percent g.d.p. in q one two thousand and eighteen preston j. byrne response wow these are reagan early one nine hundred eighty s. numbers that's a lot of growth brought on by a policy is that would stimulate growth so what is the opposition going to say to try to make this sound bad i don't know well i imagine you're

a guest in the second half is going to say the atlanta fed has always had an outlier saying wow the economy is booming and in fact they'll have to revise it down to like two or three percent right now they're saying it's five point four percent it could just be a parting gift for janet yellen who was the chairwoman of the federal reserve i can pull up my collar in honor of her you know as she can or something i have no idea but she does seem to prefer putting her little collars up not in town suits she wears pantsuits again with the pantsuits look all this growth is also being reflected in the rising ills of the bond market or falling prices which is an indication of inflation and of course that would put the kobayashi on a thirty eight year old bond the bull market and that brings all kinds of new wrinkles and twists and turns to the stock and bond markets of course the markets

have been kind of tumbling relative to what they're used to they're not real tumbles of the one nine hundred eighty seven magnitude that you're you. which would be a six thousand point drop but you know markets or it certainly the media gets quite hysterical when it falls at two hundred dollars two hundred points which is a fraction of a percent so when the markets have responded negatively to make the positive job numbers that also came out last week the g.d.p. forecasts being forecast higher all of these you know bonuses that major corporations are giving their employees the tax cuts those were all priced in last year and now they're kind of i guess some say seeing inflation 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 they'll do it again in two thousand and twenty if wages are going up twenty eighteen is a little bit more important 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 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 to the top two recipients of

the of these funds flowing into egypt 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. the next the previous largest inflow of e.t.f. funds was in december twenty sixth scene 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 like one asian and you try to liquidate these e.t.f. and ten or twenty eighty s. own the same thousand shares of i.b.m. or general electric or microsoft which one truly has those shares 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 dame 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 fell swoop due to their over exuberance brought on by the cheap rates engineer and 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 and catastrophic lee well of course they've been a perfect contrary and 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.s. now as somebody selling to them 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 as well. that was from china and zero had 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 miss chain 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 of 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 cryptocurrency s. 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 certainly smells like with the panic cash withdrawal in places like china and with the sell off in all these various markets and with the oil prices climbing. gold looking better than we've got here an old fashioned reversal it's a rotation and 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 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 is 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's right even though the well that's a big in the news i was it covered people are eating and i forgot to add edible on to that yes at a fundable 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 degas but they go out of the day go to go into the big dig and they have a nice british is sandwich e.e.o. and they run out of the shop with their pearl oil and a lot of 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 a way to being the next on trump i think trump on 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. a 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 i'm a twenty twelve so you know may twentieth while the 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 course that is the fix market is a many many many trillions if not quite jillions of dollars market 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 rigging is the fix but they're paying a seventy million dollars fine and to the ordinary person who's running off with some laundry detergent as their own fungible transferrable tradable 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 bore for x. gold and silver now multiple banks have been finally error vocally irrefutably 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 laundry 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 bunk. say here's my finder's 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 prison 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 family and allow them to go steal from their moms and grandmother to pay that fine but the banks to to pay the fines these banks steal in the open market from each other from the public from their families from donald trump their 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 pranksters attempts. you know a serial rapaciousness 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. in my mummy boy and entertainment have become clear that it can pop culture and we have children grow up playing playing games on the computer this war has somehow been to mystic hatred as entertainment to russia just there's nothing funny about it is so serious russia will be the last kick of nuclear weapons because russia regards nuclear weapons as the bow. of the against inflation a waltz by superior upstart cultist.

luck. 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

max we're seeing some fireworks here little. one i think that's going to do to all the you know european shorts own volatility how you get smashed on his trade max yeah that's an interesting idea there is ban a trade on the for how few years now in the head try 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 in renewed high we're seeing market down a few days in a row that dollars we're talking years down far more it's not sure where it's going to close that's not that's

a pretty significant move is 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 and max. 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 there 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 you have it or an 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 key one twenty eighteen will show a pretty remarkable five point four percent growth your thoughts pretty remarkable . how about an awesomely remarkable attard oh i suppose i some perversion it didn't 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 and 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 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 over underlined at a football game in the n.f.l. and then 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 of course sand that 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 had a bull market in bonds ever since then and we have a zero wrenches traits we've talked about in some countries dollar interest rates are negative but so the question is where the rates stack climbing higher is this finally the end of that bull market way say they're mesh i don't know but i don't. thanks for this source for all of this global asset inflation and they'd have to come back to the bank of japan and a bank of japan has been the go to car say the driving this entire bubble anomic

sent 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 was the funny thing they came out inside at three days ago right as a rule haven't haven't we heard this message you're before now and did we did i went back tonight and i looked and i found a they said the same thing in. financial times reported i think it was august i think of last year when they said it probably sent before that so now they've drawn this line exam x. it's at zero point one one percent so i sat in my blog yesterday and i said room what's the message here that is that japan can't stand it and eight one basis point rise. in bond yields on 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 interest and want to hold on to these things no one else in their right mind has them anywhere else in the world so i don't. know that you know so i did a sarcastic post maxim on my blog and i said i did that why does japan and you know strategy you know just buy all of these at this floor was there is do it max go out there and just buy every pot why not they you know of course some fund managers might not want to give up those attractive you know one point one one point. percent yielding bonds on ten years so i said the way they can get them to release their max is is if they tax anyone who holds bonds at one percent now these guys are losing a percent a year on these things we're going to have

a load of things in the mass in mass the bank of japan to buy them all up every one of them now looking to beauty of this max we can finally test them to empty their monetary theory that government spending doesn't matter and we owe it to ourselves is after they fire 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.t. now what do you sell the pants at the highest debt to g.d.p. they've got the highest debt so. versus you know their central bank oh look yes well i get mad yeah oh yeah man so yeah all the groups are going to buy of all these arms bonds chancel that debt nerd start with a clean slate let's do it let's go for now and i propose one more step while around why don't i just buy up all the debt of corporations too given that they were buying all these stocks well you know it was as. though the swiss national she

asked oh man x. this is what him t. says re can do i'm ready for a while i made a case 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 and banks all over the world so cancelling japan's debt whatever the fact that the global economy into a freefall and it would immediately come to a grinding halt because of the fraud that happens on a such a now you know that max and i'm know that a remark that well this isn't about the m.m.t. stires say oh yes isn't. this let's mills a collapse give them let's go. yeah i want to before we have to leave now let's talk about something that's i think the most ridiculous play off the charts nonsense i've seen in quite some time and you know i know you tweet

a lot about bakelite i talk a lot about they call on you know you see big line is bang fantastic all at and not worthy of comment but compared to this story mesh it makes big clay look like a triple a gilded bun a day in your own state of illinois they have a plan to fill the pension black all by selling a hundred seven billion bonds and then using the proceeds to buy stocks that are now all time highs i mean this award is smoking over there illinois i don't know max we talked about this a little better a few days ago up there there. it is kind of amusing when i proposed i don't know what their idea there 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 barn 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 break even my proposal was some of the bank of

japan's proposal was to buy those bonds and do something different you know you don't throw a billion dollars a month on on the next best it's not going to sank we're going to rot i got them and made a fortune this month there are already going to donna i know that's not what they want to do and i want to buy this money and do the same will bury me where i don't know i is pensions or about forty percent foreigners are actually it's worse than madly that's what the clients but it's the next downturn is going to kill off. measuring else again by mess we've got to say goodbye we're going to pick this up in iraq x. we all are thrown out i don't know because you know you've got a wealth of information but we did. out of time thanks for being on my planet all right well that's going to do it for this edition of the kaiser report it was me max geyser and stacey i would like to thank our guest miche shad luck if you want to find us on twitter go to cause

a report on twitter yeah until next time. 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. here's what people have been saying about rejected in the senate it's full on awesome the only show i go out of my way to find you know what it is that really packs a punch oh yeah it's the john oliver of our country americans do the same we are apparently better than the blue. sea people you never heard of love jack to the next president of the world bank very. seriously send us an

e-mail. clone welcome to worlds apart for decades russians have both laughed and despair that the inadequacies of their system also struggling to accept this same kind of criticism from foreign theirs and when russia decided to hold a mirror to the west only imperfections including by setting up this child it turned out western tolerance to criticism is even more why is it so difficult to communicate pointing out what's wrong with one another well to discuss that i'm now joined by tony cab and a former diplomat and the author of

a book called return to moscow well mr cavanaugh it's a great to have you in the studio thank you very much for your time and happiest charlie a day thank you very much. now when you say australia in the russian context it conjures up an image of a beautiful faraway land with bright sun blue sky a beautiful beaches with friends.