the answer this is the kaiser report you know we talk a lot of various topics on the show and one topic that we don't talk enough about is love you know love makes the world go round with love nothing is possible i'm so fortunate to be so in love with stacy. ok well that's quite interesting that you bring that up because actually our first topic is all about hate and how hate drives huge profit hate and fear and it's all about the american huckster so you know that the right wing in america the republican base has was kind of you know rallied into a passionate fervor with the tea party once obama won and it was all about irrational fear of obama who were supposedly born in kenya as a muslim and was

a secret muslim taking over the united states and it was going to introduce shariah law sort of crazy well now the left wing has gone the so-called left wing has done the same thing we've turned into you know the democrats have turned into another american huckster class so i'm going to read you this headline from the daily beast about. you know the resistance the hash tag the resistance and all of the groups. you know the political action committees that have erupted around fighting donald trump and saving the republic from the new world order of donald trump cash for coalition against from going into consultants pockets instead as chump ran for president the group democratic coalition against raise money promising to stop him while dedicating more than ninety percent of its expenditures to paying its own members to surround a guy on twitter cuts got to work and he's got

a huge following now because he's leading the resistance along with louis' mansion aaron garland and all these crazy wacky conspiracy theories send us your five bucks right now and we'll fight trump on your behalf i'm convinced the connection with hate and hucksterism is one where the hucksters in this case are instilling hate hate the other side the two minutes of tape they're trying to get people to hate irrationally toward the republicans coming from the resistance side of the equation the they're not instilling hate the hate is already there and they're like you know they tickling that hate they themselves have no emotion they're just like looking for somebody to plunder to pick their pockets and send us five bucks a snake oil here will help you get rid of your shaky legs and it works every one hundred percent of the time here they're like just send us your five bucks and we'll help defeat trump will help keep you from you know you know we'll we'll see

we'll we'll we'll seek vengeance for hillary it was her turn she should have had my guess is the right term for it i mean this is the basis of the american experience it's goes back to p.t. barnum it goes back to wild bill hickock it's part as it's thomas edison it's a lawn musk is the end of the day a bit of a lobster there's a spectrum. upon which hucksterism is a you know some of them actually don't get it steve jobs these are for canucks they happen to be able to of sweet talk their way into australia raise a few billion dollars introduce technologies that became world beating but without that make it and fake it to make it mentality that is so american there would be nothing that's what donald trump represents so these people don't understand what they're fighting they're fighting ben franklin they're fighting the constitution the fight in the revolution of seven hundred seventy six they're fighting alex jones for gosh sakes and nobody beats alex jones he's got to be everyone's become alex jones twenty years ago oust jones was the fringe guy in media now everet

there's no more walter cronkite there's no more mainstream media anchorperson isn't even brian williams the last of the tribe was obliterated now you have rachel maddow everyone of mainstream media katie couric whoever they're all trying to catch up to challenge alex jones is the gold standard in american news and the crazier the conspiracy theories from maddow becomes the more she sells now on alex jones of colonial silver and guardian and account sort of stuff but on her show it's just as wacky sort of opioids and by aggro and you know erectile dysfunction has been she's been shown that the goop which is the product of that shiksa lewis powell charlie opposite of oh gosh i did not have sorry but she's got goop which is the same stuff in it that they sell over at info wars and erectile dysfunction gosh you know if only they just were able to cure baldness like they were trying to

do originally i mean then we would need a d. woodley because we're just too good looking i saw a horrible video of donald trump apparently is i completely bald and has these weird patches all over its head i think i never does the greens at his golf courses did his hair do you know that brought in some kind of greenskeeper did come up with that hair do it i mean if you get lost and there are three. it's a two stroke penalty but it makes no sense for the president to look like that as kind of an outsider to these two groups of hucksters victims of hucksters right wing left wing red team blue team you know democrat republican because we've lived outside the us for so long and then it's quite funny we were mocking the tea party and and that they were being plundered by all sorts of hucksters and now it's funny to watch the left wing the soca left wing the people who how at the sky and the people who are like having breakdowns over you know two hucksters running against each other they were to various forms of hucksters versus clinton they're both

stirrers one huckster perhaps he's a bigger huckster but nevertheless he still won the most votes or the most electoral college votes for sure hillary is not a huckster bill clinton is a huckster you know hillary is like leona helmsley she's a word that rhymes with rich i think that was her direct quote but that doesn't make her a huckster unfortunately oh she won while she was riding on the coattails of the huckster and here again they talk about the democratic coalition scott torque and they paid more than half of the money it raised last year to its employees of their consulting firms according to the federal election commission records dorchen the bulldog finance group was the chief beneficiary john more than one hundred thousand dollars from the democratic coalition the breakdown of twenty sixteen when the democratic coalition declared his goal was who making sure that don't trump never became president was even starker that your dorchen and other staff members received more than ninety percent of all the democratic coalition's expenditures either personally or through a consulting company according to f.e.c.

records it's a common theme throughout u.s. literature poetry culture yellow tabloid journalism through history ideas i think oil a little research on that actually came over with the chinese immigrants who were building the railway and they had actually chinese oils snake oil stud were good for art right. is sore muscle pains of things like this and then the american huckster was able to adapt that and americanize it so that they just used opium alcohol and some other fancy ingredients cocaine in a bottle and sold that as a pain reliever and is still going on today the biggest opiate crisis in american history is just a snake oil repack is from the days of the chinese immigrants selling snake oil on the plains across america sosa memorably in without us it's never change we've never not had this plague of hucksterism and that's what america's all about donald trump is as american as the flag and apple pie again here is some more reason quotes from the daily beast article the apparent self dealing in large legal

expenditures of the democratic coalition against trump have left some donors to the organization angry with what they see as a waste of money and energy it's also left democratic operatives worried that money is being sent to organizations that are engaged largely in self promotion at a time when resources are needed for midterm election contests and the state advocacy against trump hucksterism flourishes in the political arena when we are no longer really citizens where consumers we want to buy somebody who will do our work for us so do our advocacy get out there with our placards go out there and vote go out there and agitate and go out there and harass you know not harass but like you know be a citizen and call your congresspeople call your local officials call the party representatives and say do this or do that and said if we want to just like just like with charity which is also filled with hucksterism you send bob geldof ten bucks or you know one of those sort of organizations headed by a celebrity front person you know you send them money and you think like now i feel

better and i'm just going to go you know plunder resources around the world with a feeling a little bit better that my military plunders their resources but at least i gave twenty dollars to some charity that allegedly helped some people who are start you know the child laborers that diamond mines in somewhere in africa george washington . jumped out of cherry tree. it all depends on what your definition of is is right bill clinton and they get away with it because america loves it america low's the and you know that's what got us to the moon i'm sure if we went back up to the moon we'd find that all that equipment up there was made by somebody other than they said it was going to maybe they weren't drinking tang and it was just all of a way to get over on some date somewhere on planet earth it's all about get no is hugh hefner ism written large or go to the moon to be you and you know shades of

hucksterism everybody's a huckster in this sort of a commie certainly in a consumer capital society and crony capitalist society you've got to be a c.e.o. he's got to be selling and you gotta sell somebody and then you have to flip your house to some chump faster than they could understand that i don't understand why people don't like trump i mean they like self hating americans like don't they realize that they that's who they are they think americans think of they are barack obama they think they're you know marvin gaye you know out there smooth as silk just smooth in it and man like yeah go daddy did he go daddy yeah man lead got it all would work in it and it's dats who we are we're american we're smooth you know but we're that's not us americans are crude ruthless huckster golf playing sharks that's who we are and those who don't trump is that's why i don't like a barack obama that's what i love trump so again most people that i don't like to

look at themselves as victims especially when a huckster is doing you over a ponzi scheme operator defrauded you you don't nobody likes to admit that so you can look at the other side and you can see how they're. look at those tea party scam they've been scammed by all the hucksters so let's look at the other side because the democrats of course are pristine and smart in a way to a leading edge of. kate and i retirees and eating but they mention here that we saw the rise of scam packs during the obama years where grifters would tap into anti obama sentiment to raise mostly small dollar donations from grassroots conservatives and then pay themselves consulting fees rather than use the money to support candidates or causes brandon fisher the director of federal f.e.c. reform programs at the nonprofit campaign legal center said in an e-mail the democratic coalition seems to be using a similar playbook only here they are tapping into anti sentiment but i'm sure are like you are so smart and you're on n.b.c. and m s n b c and you're way smarter than to be by these terrorists there is

another word for the c n b c types and the rachel maddow m s n b c and that's communist. clearly they're a communist threat there's a communist infestation of this country a lot of back to the original want to another american huckster joe mccarthy and with her i think that's right who's watching some videos from paul robeson that guy was down i mean he set the stage for everything you know he he saket to whiting in a very elegant way with that voice creaminess everyone should watch paul robeson get an education hey we gotta go to the second half stay right there it don't go away.

thanks. for the total it's. what politicians do something to. put themselves on the lawn to get accepted or rejected. so when you want to be president or injury or somehow want to grips with . what to do like to be for us this is what the before christmas tree in the

morning can't be good that i'm interested always in the waters of how the. first sip. welcome back to the part imax keyser it's time now to continue our conversation with mark hughes go he ron is morgan create capital all right here in north carolina it's like billion dollars in stuff welcome back marc thanks for having me first of all two quick points carry over from our last chat your guy is the bitcoin gold equivalency it's a very dashing tie and second of all you put out a four hundred thousand dollars price target for bitcoin because you believe it is gold two point zero if i'm not mistaken just to finish that point mark digital gold i think it's the preferred method for storing value for the millennial generation and if you ask anybody under the age of thirty three in gold they look at you like

you have two heads if you ask me bitcoin or theory i'm oh my gosh of course so if you think about gold as a market it's an eight point four trillion dollar market there are twenty one million bitcoin now there aren't there eighteen or nineteen whatever the number is but eighty four a point forty five or twenty one is four hundred thousand that's over a decade not tomorrow and actually do you want to compound a greater return on that big number i need to do that yes it gets a good one but if you look i right i was going to buy your fund but now here that you and i mean to be we'll get to the warren buffett bet a second that we you know he berra said you could observe a lot just by watching if it was in the dow jones soar for the past year what have you observed i have observed that we are in the euphoria stage of a bubble that we are in the melt up phase of that euphoria stage which means we're getting very close to the end and you can never predict the end date you know a great economist once said tell people when or what never together so i won't do

that but i think that i have observed were highly valued in traditional stocks and bonds around the world and it's time to look at alternative assets and cryptocurrency and those things are return of assets morgan creek are you. it to be fully invested or can you take a heavy cash position how do you play this is really important question we are not obligated in a sense that you know we do have flexibility to to go to cash i would say even amongst our clients who are very sophisticated in who are who are great many of them still feel a little weird when we say go to cash in one of my heroes the investment business seth klarman today is forty five percent cash just like it was in zero seven just like it was in two thousand and go back to two thousand they thought the guy had lost his touch he didn't know what he was doing as a value investor value was dead could raise any money over the next decade s. and p. was negative one point nine percent he was up seventeen percent compounded i think we're close to another decade like that coming up talk about legends in the

business bill miller yes one of the guys to beat that down for a long long time many years eleven twelve years and kiwi recently took a huge bitcoin position well he started small it became large when it went up a lot last year about ten fold j.p. morgan has come out and said finally that we actually kind of like bitcoin despite what our guide jamie diamond says it's a non correlated asset yes now why is that important market non correlate of assets reduce the risk in a portfolio one of the things about wealth right is all great wealth comes from concentration every great pool wealth came from somebody being concentrated business ownership stock position real estate position all great wealth is preserved through diversification in the say how do you create a small fortune start with a large one and stay concentrated so what correlates of ass it does is it lowers the risk and the market's won the nobel prize for this when you take bonds and you add stocks risk goes down at hedge funds risk goes down and venture capital risk

goes down at bitcoin risk goes down not up because it moves countercyclical that's a really good important point that actually adding this part of fallujah reduces the risk because you're diversifying in a non correlated out. and this point will be written large amongst the many thousands of hedge funds out there they've got a huge buying power huge and they're going to be coming in here stumbling around on a market that doesn't have a lot of volume for those guys and something's gotta give and that something has to price right the price is got to go up the howlers are going to say feel bad make it make it a so easy making this money go four hundred thousand dollars now i did the math quickly in my head wow are sitting here the compound rate of return we're talking about as one percent a day and like that number yeah you know what i'm actually i just made that up because it was going to run that far today it's not that far off and here's the funny thing so on twitter i'm out actually on twitter too at mark hughes go and i think a lot of grief because people so how much you putting of your client money in this i say look we talk lance all along one percent in national crypto currency is

another one to three percent in the picks and shovels you know the coin bases it cetera and well if you think it's going to go up so much why not more so well because there's still a non-zero risk i think is a very low but a non-zero risk that it could get displaced by a better technology i don't think that's going to happen i think the miracle of bitcoin was going from point six cents two hundred dollars the fact that happened was the miracle one hundred thousand not a miracle thousand to ten thousand not a miracle ten thousand to one hundred thousand not a miracle so but it's still not zero that something could come in the open source makes that better the risk is lower because something great comes out we can take copy paste that new technology onto the big block chain so i do think that over time i'll get more confidence to have a bigger position but like anything in life you start small when things go your way you double up it was one of the things that julian robertson one of my mentors great hedge fund manager was amazing at he said you never average down losers

average losers you always double things go up tend to go up exactly go down tend to go down exactly now year you've got a billion or so an amount of spent sounds like a lot but actually in the grand scheme of things that's not a lot of enough to eat. top dude over there as a whole i am. maneuverability yeah so you can move around whereas a large pension funds large as additions they have a board they have a committee bitcoin won't be on their radar for a year to three years i think it's a great great point and we're talking to a multi you know tens of billions of dollars pension funds i'm going to class now who is going to going i'm going to guess in the guise of the guy had to go to what we would like to be is that in between that allows an institution to get access and we're talking this pension fund and they would love to get involved but they can't write smaller than one hundred million dollars check what's the chatter out there and the pension fund business you know best kind of the motherlode in this industry and what's the chatter they know that they want uncorrelated assets you're talking

about earlier that's one of the benefits is where j.p. morgan put up the bible of crypto currencies this morning because they want to base it up as they want because there's no matter what jamie says the fact is that shareholders want profits of course jamie is just talking pension funds have a problem if you look at everybody's forecast of traditional assets over the next decade where the p. a q our research affiliates are g.m.o. even vanguard is telling us you're going to make low single digits you actually assumed rate of seven so you're not going to get there so you've got to find these one core of the assets with the private investments to give you an illiquid the premium real estate venture capital center or something like crypto currencies big going to syria and center where you're going to get this lift from the network effect that's such an incredible pitch to say that interest rates have been artificially low for years and the errors due to the bailouts that are ongoing for the banking sector your pension rates are as we thought they'd be seven percent but they're actually one percent and the save the day to save america it's got to be bitcoin i mean who would have thought that this was going to be the so there is now

let's talk about the vix the vix is the volatility index and what happened with associated e.t.f. products recently regarding these products your thoughts. short selling. not that that. leverage not that bad leverage plus short selling can be bad and so what we had here was everybody and their sister started selling volatility because it was a one way bet in a q.e. world selling volatility seemed riskless last year the s. and p. had its highest sharp ratio in history but a lot of history more than one hundred ratio is the ratio of return to risk the standard deviation return of a buy standing ovation minus the risk free rate the standing ovation last year was the lowest ever at three point eight percent the sharp ratio was four point five the normal sharp ratio is zero point five so nine times less volatile so it was only

a matter of time before volatility spiked and when volatility spikes and you're levered short you can lose everything which we saw and it is he reminds me of the make it puts that were being written in one thousand nine hundred seventy yes some of us are old enough to remember frightening stat more than half of hedge fund managers are less than five years in business well i think that so they don't remember eighty seven and they don't remember two thousand but if you think about portfolio insurance and what it did it was a pro cyclical strategy right it does more of what's working and what that insures is like passive index funds what does that in short means you have the maximum exposure to exactly the wrong thing when the turn happens and that's exactly happened fix time a warm buffet or so and i totally accepted a one million dollar bet with warren buffett you said has found a lot before in the s. and p. five hundred of the next ten years why do you think he'll win this time when others have lost well look the last ten year bet that he made a ted sadie's was was

a really interesting bet and for the first five and a half years buffett was behind it was only when q.e. started that the s. and p. had this low volatility melt and hedge funds underperformed sounds like a dog ate my homework you know it's what it is what it is is. not buying it no i mean buffett is buffett and he knows that over a cycle like ten years time the fed is always going to come in and print money because their constituencies are the banks and they hate is inside the banks he was the chairman of solomon for years he like bailed out goldman sachs his dad was a stockbroker he's an insider he's not going to make a trivial bet like this i completely agree with you so why you haven't is why i went buffett are you a glutton for punishment no because valuations are so extreme today that when now the dent into the story is i did talk to him i did think he was going to take the bet three days later he sent me a letter saying his age preclude him from taking the bet so my guess is he's never

going to take it but he can't win a chicken dow or a big fat. plucky tail plucky my chicken my pet chicken because talk about that all right well that's the status and so some of the bond market now we've been a bull market you know since i started in law straight back in the early eighty's you know bond markets have just gone up thirty five he says thirty five years and is it ever going to end in fact i was just listening on the ride over here to carol sokol off and if you ever talk to him but you should he's run some called thirteen d. research and he wrote a book in one thousand nine hundred two inflations ending are you ready to think about one thousand nine hundred two where inflation was thirteen percent nobody thought inflation was going and everybody was buy in equities not bonds and they should have just held them long bonds over the past thirty five years have crushed equity returns come power terms much i really just don't know how to be long bonds yeah duration twenty or. thirty year there's areas on bond there's be the s. and p. over there it's i was correct it is correct and hoisington runs

a phone in austin texas that has a track record to prove it now the key is from here what he was saying is that he believes we've seen the secular low now guys event who isn't and would defer they think is not a twenty twenty one but we're get. close to that secular low in rates and at that point bear market is going to take over and it's not going to be pretty i don't know where we had a bond sell off you know vicious is going to eclipse that it would be way worse if it occurs i argue that it can be tough to occur because just like japan we have a demographic problem every day in this country ten thousand people turn sixty five sixty five eighty five year old people turns out don't spend a lot you know buy a lot and they buy bonds so i think there's going to be more of a bid for bonds and people anticipate because of the greying and it goes back to one or you know conversation fame's right we got thanks we have the show now thanks for having us on of course it's fun to show ever thanks this is the show anyway we got to go thanks for being here and watching the kaiser a par with me

a mask guys or stacy her special guest was mark hughes go there morgan creek capital they're fantastic exposure to vic oh if you're that middle tier you know not the going to catch us on twitter it's kaiser report. i. just. certain i want to do things that show everybody is doing really be very clear. the way. management. and they are they they are what they have and they have.

given you need to feel the. sun yeah what do you how much. do you. mean that we could measure. with more make this manufacture come sentenced to public wealth. when the ruling classes project themselves. with the famous merry go round the sun neither will. ignore middle of the roots to. dilute the real news.

is getting international recognition with the help of israel at least in the world . of zoos and nimble physical fitness should do it long before your committee this isn't my cup of tea is going out local study hall maybe you know chalk it up tell. me the only palestinians who gets the most help from its jerusalem counterparts i don't think there's some of those who in the world under the oak vision not only could get it. and know it is all of your knowledge to how to display any of the muscle that you had i'm going to continue muslims you know do more camillus also don't piss off.

the. syrian pro-government forces and to the northern region of our friend then immediately come and shell fire from the turkish army which is currently fighting against kurdish militias. both samples of a russian and lympics that list in south korea have tested positive for a banned substance this is being confirmed now by russian sports. and in japan recently discovered state documents revealing mass forced sterilization of prompted victims to break their silence at stake my parents told me their time was operated on and now i cannot babysit my father didn't agree to the ration he was forced to sign documents by my teacher and while foreign forces.