there's more money. more money for you honey something to that effect. paraphrase of course but you know she was the real for me but i was there all the mother for the money people want the money there and so this could be a you know throw the traditional midterm election theme a little bit make it more unpredictable than is usually predictable but there's another one which is the tax cuts have hit a lot of homeowners and places like new york city and san francisco well ok they're normally not going to vote republican anyway but you know pending home sales tumble to a three year low as housing crisis worsens so pending home sales fell four point seven percent in january this usually takes a while to trickle through but the point is that. you know the largest private land owner in the us. the landlord is blackstone group so since there's been a alleged recovery in housing prices since the crash in two thousand and nine but

most of it is gone to the likes of blackstone group and if you look at that house prices actually aside a great chart from i think it was the financial times that price an s. and p. five hundred actually house prices have been declining so it hasn't been performing as well as s. and they've been underperforming the stock market oh my god blackstone arbitrage opportunity you have wrought selves i suggest you short yourselves and borrow money into you eviscerate your own corporate balance sheet and then blow your brains out on live t.v. they gave us all of the kind of fun experience for the financial predatory class. well don't go away much more coming your way after the break so stay right there. hey everybody i'm stephen bach. hollywood guy next. right

american first of all i'm just george bush in our view to say this is my buddy max bemis financial guru when he's a little bit different i'm. going to. go with all the drama happening in our country and have fun every day americans. look to the store to bridge the gap this is the great american. gun some is not is not a quick place is called. good country and. true that's a good bunch of minutes there but some of those stones. visited this but this is. just the future.

of the shores of. checking to see. just where the embers from the rim of them still to be that i'm. able to sleep albums from still. play almost anything for the both of these things that i think kind of odd that john said i'm based on i'm not sure that's what i mean can i do not do that i would just write this poem crap you can i don't i'm not eighteen. cannot. confront and i can you someone must feel right now with the fact that i'm a. good sister to my son enough i was going to show you the sea but only to go to the cities in the michael. boyce is in the sort of the world of the street. and i'm about to go for you know there was this. this was well.

welcome back to the kaiser report imax guys are time now to go to wolf richter of wall street dot com out there in the bubble iest of all bubble markets ever cisco wall welcome back to the guys report thanks max for having me back all right well if you're right that markets are still in denial about the increasingly hawkish thing what do you mean by a hawkish fed and how are markets in denial about the so-called august as well. well first we have to explain that hawkish today doesn't mean what hawkish meant in the early one nine hundred eighty s. when volcker. interest rates one hundred basis points and one meeting and and then the next meeting regimen a hundred basis points i want percentage point each that was hawkish by any

definition what we have today is a fed that raises perhaps. four times in an entire year so one percentage point in an entire year and vocal would have done that in one meeting so the definitions have changed a little bit but. the markets are until very recently were penciling in just two rate hikes this year and even though the fed has been saying we're not going to be three most likely they have been several fed governors who have recently opened the door to four rate hikes. powell and his testimony before congress added to that chorus he opened the door to a fourth rate hike this year the markets are still not ready for that for rate hikes mean it means that mortgage rates are going to be about five percent by the end of the year maybe closer to six percent and it means that the ten year yield

for the u.s. treasury market would be in now and in in around four put in the four percent range and it shuffles the cost of borrowing for companies and for four hours holds so this has a dramatic impact now this doesn't sound like a lot of people you know thinking whoa whoa correction interest rates to one thousand percent well this is not going to happen this time around but they are rising and. you know markets have especially the corporate bond markets have completely blown it off their debt just have not reacted to to the rate hike environment yet but they're going. there you can see the first the first indications that they're getting the message and which you were talking about you on the vestment side but for corporations it makes it barring more expensive for me makes created harder to come by for companies that are junk rated so it tightens up the financial conditions and it'll take a lot of the credit enthusiasm out of the market all right well to put this into

historical perspective as you mentioned back in nineteen eighty paul volcker was a hawk and he raised interest rates up at one point at a time and we got up to the mid teens on the interest rates and but as you point out if in fact we start off at a twenty five percent fed funds rate and that rate goes to one percent or two percent that's a four to eight hundred percent rise which actually on a percentage basis would be greater than the rises under paul volcker and this would cover a much bigger pool of debt so the question therefore is. did it if in fact inflation genie is out of the bottle and the i.s.i. manufacturing days just had a thirteen year high of sixty point eight percent in february it indicates that inflation is roaring back the fed has always told us that they can

take those toxic assets off their balance sheets and return them to the marketplace without causing all kinds of market may have is that possible wolf. i think it's important to realize what the fed is trying to do and the fed is trying to tighten up financial conditions which means raising year olds which means by definition falling bond prices so the fed has also talked about the elevated valuations in the stock market certain fed governors have talked about price bubbles in commercial real estate which is back before trillion dollars in debt that are sitting on the banks hold and that. commercial mortgage backed securities are or are backed by and so you have various fed governors look at

various. pricing or valuations out there and they're discovering and that's tied in a study and a half ago and that discovering that after years of key and zero interest rate policy that asset prices have gone out of whack and so that purposefully trying to lower them that's what that's what it means to tighten financial conditions and make make it harder to borrow money bring valuations down a little bit and so they're you know that targeting asset prices with us and that's just by definition so the question is that you asked whether they can do that whether they can low asset prices without causing a lot of mayhem in the markets and i don't know you know it i think their plan is to do it very gradually without made him so spread it out over the years that's why the interest rate hikes have been so slow this in this cycle extraordinarily slow and you know biggest i know that asset prices are way out of whack and they know

that there's this huge amount of debt out there at all levels governments in a simple government corporations consume us and it's very difficult for for these entities to digest high interest. traits and everything has been picked on me as your interest rates so i think trying to create a soft landing for markets and our history in trying to create soft landings is very spotty so i'm not sure that they're going to accomplish a soft landing or that it's going to be some other landing here. you know the history of the bond market going back to again to nineteen eighty was the beginning of this twenty six twenty seven air bull market and bonds interest rates have ban on balance going down for twenty six there's two generations of americans and people around the world have never known an environment of falling bond prices in

a big way and rising interest rates in a meaningful way and they central banks including the fed are trying to engineer something that is in my view an m. possibility because they are going to signal to this massively over leveraged global bond market and stock market and asset markets that are controlled by trigger happy hedge funds with hundreds of trillions of dollars that buying power at their disposal that they are going to ask them not to panic sell their bond portfolios in a rising interest rate environment that's absurd of course there'll be a panic sell of bonds of course they'll be a bond crash in the very near future if the market thinks that rates are going up to the levels you're talking about i think the question we have to ask ourselves is when will the fed choke every single time the markets come down in a big way the fed has backed off and they've become accommodative they've given

wall street what they want more free money remember this is a global ponzi scheme that we live and engineered by crooks at the central banks wealth how much of a bond crash will we need before they capitulate and say. we understand we have no control the situation and wall street is our master want to be a twenty percent fall twenty five percent fall in the bonds before they roll over and play dead once again wolf i think we can look at energy as a model so oriel topped in two thousand and fourteen the price of oil and and then came down by two thousand and fifteen and two thousand and sixteen energy companies small ones were going bankrupt and their loans and bonds were defaulting and credit froze up and in the lower rated spectrum of those energy junk bonds year old spiked to over twenty percent and companies that needed to roll with debt meaning their

bonds came due to the material they had to pay him off and they couldn't raise any more money to do that yes so they went bankrupt and so credit froze up on that level and this is when the fed came out and said we're going to stop you know your member of the december to force on you some a two thousand fifteen hype their rates the first time and so when this whole thing with credit froze up in january two thousand sixteen for these energy companies and it started to spread a little bit to other sectors the fed came out and said essentially we're going to stop these hikes and they started flip flopping big time again and. and that was in essence every action to the bond market not to the stock market you know they're really worried about credit freezing up in a credit dependent economy and so when that happens that would that will back off to some extent now they didn't lower rates back then you know they didn't change

that insta restart key all they did is stop raising rates and so this could be the model if if junk bond yields blow out and created freezes. across these great company. and they having trouble raising money you know you've got chip will see your eight year olds and above twenty percent it may very well be that the fed will say ok we're going to hang on for a while financial conditions have tightened enough that's what they want to do is tighten financial conditions but not too much you know that's what the mean right well it looks like well if i mean ok the credit freeze and energy market they've backed off and there is a credit freeze in two thousand and seven two thousand and eight that caused the global financial crisis and they backed off and they bailed out the creditors and not the debtors they're in the pockets of the banks and although they stopped easing money as you point out their friends in other countries like the e.c.b.

and bank of japan open the spigots of money in a huge way the net global growth of money supply has been increasing year over year over year and the debt to g.d.p. of the world is at skyrocketing levels of three hundred four hundred percent global debt to global g.d.p. hey this is an enormous ponzi scheme there's no escape from this enormous ponzi scam the best they can do is try to scare the market into not crashing a little bit but look out is that's impossible nobody nobody's going to be able to is to talk cancer away there's a cancer in the market you can just ask it to walk away and not attack the cancer is over leverage speculative jihadi financial terrorist with too much money to speculate on these bond markets and the fed has nothing to do about it they're going to and i fight they're going to a gunfight with a knife roll off how they're going to do you honestly believe that they're going to be able to manage this exit from quantitative easing without

a catastrophic bomb collapse and we have about thirty seconds and then hopefully i can stay for another segment well i certainly hope so because when there's a catastrophic on crash there will just restart the whole mess all over again and it will make this situation worse so my wishful thinking is. that yes that will be able to engineers some kind of acceptable ending and spread it out long enough to war you know companies that i have good credit can survive it and that the zombie companies are allowed to die off yeah well that hasn't been the history so far there is no zombie company that has been left behind every single insolvent bank whether it's j.p. morgan and just basing b.n.p. in france or deutsche bank in germany has been allowed to operate as an insolvent institution purely on a large share of the public's free money anyway we gotta go thanks for being on the kaiser report q all right that's going to do it for this edition of the kaiser

report with me max kaiser and stacey i would like to thank our guest well for ector of wall street dot com if you want to write to us on twitter it's guys report that i stand by i'll. play too 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 or the funnel school it's about the passion from the fans it's the age of the super money kill you know spend spend two to twenty million on one player. it's an experience like nothing else not to because i want to share what i think what i know about the beautiful game. three to one more chance for. peace it's going to.

the new global economic war is unfolding in the realm of education the right to education as being supplanted by the right to access educational loans higher education is becoming just another product that can be bought and sold but it's not just about education anymore it's also about running a business and what you're good at bruges look good is also. a fellow economic. want is the place of students in this business model before college i was born now and i am extremely more higher education the new global economic war. is a. church secret indeed just like priests accused of sexually abusing children can get away with it quite literally i like to call this the do

a graphic solution so what the bishop needs to do then he finds out that the priest is is a perpetrator is simply moves him to a different spot were the previous standards not the highest ranks of the catholic church help conceal the accused priests from the police and justice system to that it is as old as the eye and then i conclude that it is this sad and. it is felt.

the headlines in r.t. the u.k. home secretary confirms a former russian spy and his daughter were poisoned with a nerve agent but while politicians and the media talk of the kremlin's possible role a rod rules speculation if we are to be rigorous in this investigation we must avoid speculation and allow the police to carry on that investigation the saudi crown prince is given the red carpet treatment by downing street as protestors outside to denounce riyadh bombing of yemen and racially motivated hostility and crime against native germans are on the rise in berlin that's according to the city's interior minister.

welcome is just gone seven pm here in moscow you're watching r.t. international start this hour with the news this just in from series eastern ghouta because terrorists have shelled a large group of civilians who were near the exit of the besieging russia's reconciliation center says that nearly three hundred families were in the convoy both russian and international journalists are also said to have come under shelling there is no information so far though on casualties were all this is just hours after a humanitarian convoy was temporarily prevented from entering east and on thursday to military developments on the ground the situation in the area remains die.

former russian spy and his daughter of belief have been poisoned with a nerve agent according to u.k. police say. remain unconscious and in a critical but stable condition according to the home secretary after being found unconscious in the british city of seoul spray on sunday the country's top counterterrorism officer says the pair were targeted deliberately this is being

treated as a major incident involving. straight. i will not be providing credit for mostly. about the exact steps. so let's give you some background. he used to serve in the russian military intelligence service but in one thousand nine hundred five he was taken on as a double agent by the u.k. russia court in two thousand and four and later convicted him of revealing the identity of russian secret agents in europe he was sentenced to thirteen years in prison however he served only four years before being released as part of a high profile spy swap. with the u.s. he was later flown to britain here's what the u.k. home secretary had to say today in parliament. is a brazen. act but if we are to be rigorous in this investigation we must

avoid speculation and allow the police to carry on the first occasion well that was her updating the house of commons on this case and she cautioned against speculation and not just speculation in the media it's something that now the politicians are doing as well many of them have pointed the finger of blame squarely at last and some are even using it as an opportunity to push for more defense spending take a listen to the circumstantial evidence against russia very strong who would harm. the. defense the first use of the room and spending two percent on the fence it's not enough there will come a time for tribulation and there will be consequences and there will be further information that follows but now i'm concerned about the incident and the consequences around and actually speaking in an interview this morning the defense secretary gavin williamson pulled that thread as well he refused to say whether or

not he thought moscow was behind the attack on sergei script but almost in the same breath he also referred to russia as an ever greater threat despite the home secretary's appeal for everybody to keep a cool head about this news stories about sergei script pollen the therese just keep on coming one media report has even linked him to the intelligence that came up with that so-called dodgy dossier on donald trump so some pretty wild theories swirling around in the meantime the police are getting on with the police investigation somewhere where they might act. a few facts it's now been divided into three separate sites that investigation the script house home the pub where they were drinking on sunday with their daughter and a pizza restaurant where sergey skip allen his daughter are thought to have eaten

and the police say that they came in through all the c.c.t.v. footage that they have and they're building a detailed timeline of events they've got hundreds of officers working around the clock trying to find out who it was that used that nerve gas on sergei script powell and his daughter and why so as polly mentioned there ben the script incident is dominating the news in britain at the moment and although little is currently known about exactly what happened reporters are wasting no time in speculating it was orchestrated by the kremlin a claim moscow strongly denies former u.k. police officer peter cook and believes the media hype does not help the investigation. speculation in the media speculation by politicians is never helpful to an investigator when you get any sort of hard profile case you'll find that the media are going. going quite quite loudly about what their theories are and all the rest of it we've had it with hate crimes and crimes and various other things

terrorism sort of a big thing that exhorts of the barrel it's not helpful to us to go to officers investigating officers know that they shouldn't let themselves be swayed by that they follow the evidence it's obviously not helpful. now the u.s. secretary of state is on an official tour of africa the moments with ethiopia his first stop head of the trip though rex tillerson did claim the continent is being exploited by china an issue that's expected to dominate the upcoming talks russia's foreign minister who's also on a tour of africa had this to say about to listen to remark. again there's no. i didn't know that rex tillerson is an expert in africa china relations but i think it's a little tactless when on a visit to talk about the relationships of your hosts with other countries especially in such a negative way. you go to dan of takes

a closer look now whether africa well actually becoming a stage for rivalry between the u.s. and china the united states wants africa back in its pocket which is all things considered a bit of a tall order just a few months ago african nations learned that according to trump they well to paraphrase the president kind of stink now the state department is on a bridge building mission we're partnering with our workers by incentivizing good governance to meet long term security and development goals. this is a stark contrast to trying as approach which encourages dependency using opo contracts predatory long practice is a corrupt deals china you see is something of a major headache for washington beijing has been courting african nations for years the asian powerhouse is involved in crucial infrastructure projects there it's invested billions of dollars in

a railroad linking the continent from east to west effectively opening the door for pan african trade kenya is one country in particular that has benefited from china's cash injections it got its own railway the largest infrastructure development since its independence more than half a century ago but even this pales in comparison to a chinese construction firms in bishan in south africa to build an eighty four billion dollar city. hundreds of millions of dollars worth of aid education investments a chinese t.v. channel for the african audience beijing is going all in here it's soft power strategy has already made china second most popular destination for african

students and its military is in africa to last year china opened its first overseas base with a facility in djibouti the same year it held joint drills with tanzania chinese soldiers have already been here for a few years its peacekeepers have been involved in missions across central africa so is it really that much of a surprise that some african nations prefer the chinese way over america's sweet talk the chinese has been front and center in providing us with roots this country . developed op to mock a posse in this regard so we're working very hard to give and we believe that walking to gether would bring about a beneficial relationship china has become successful in africa because china tends to favor intense distrust civilian projects some years ago the first president bush said the united states had more.