they hillary somehow despite the obvious absence of any you know passionate support for her they believes the polls that still she would miraculously win here they believe the wrong polls that people would be against these tax cuts but all you need to do is put fifty cents in their pocket and they feel what fifty cent and it is again to put fifty cents in your pocket. is not a fifty cent in your pocket is happy to say me what's going on here he seems like everywhere this guy now i get it so like the money in your pocket is very convincing you know you got a thousand bucks i remember when i was back under reagan i was a proofreader in a rubber stamp factory and reagan changed the withholding tax and i got an extra fifty bucks in my paycheck and i are probably. get paid every two weeks and i don't think going to wow and i remember very distinctly my coworker this lovely lack woman who was looking at this my coworker and. there is

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 other for the iraqi 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 gods of the likes of blackstone group and if you look at that house prices actually i saw 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 of 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 work coming your way after the break so stay right there. are you do believe he can mimic will resume funding in the realm of education the

right to education is being supplanted by the right to access educational loan 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 models of the regime look good it's also the truth a little it could be. what is the place of students in this business model for college i was born now and i'm extremely bored education the new global economic war. where you could you let your daughter you know that's another flood plain and one. million people die and die and. he killed people in vain b.c. even begun.

now no one stole from tulane everybody's around him and god said.

welcome back to the kaiser report i'm ask eyes are time now to go to wolf rector of wall street dot com out there in the bubbly asked of our mobile market san francisco walt 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 haka she said what do you mean by hawkish fed and how are markets in denial about the so-called hoggish ness wall 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 then the next meeting regimen one 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 local would have done that in one meeting so the definitive is 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 in 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 four 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 you know. in in around four in the four percent range and it shuffles the cost of borrowing for companies and for four households so this has a dramatic impact now this doesn't sound like a lot of people you know thinking whoa whoa corrosion 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 of completely blown it off they're just have not reacted to to the rate. environment yet but they're going to they're you can see the first the first indications that they're getting the message and which you were talking about the yield on the investment side but for corporations it makes it barring more expensive and he makes credit 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 do put this into historical perspective as you mentioned back in nineteen eighteen paul volcker was a hawk any raise 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. the 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 a 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 died 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 they're purposefully trying to lower them that's what that's what it means to tighten financial conditions 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 the 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 inches. traits and everything has been picked on me as your interest rates so i think that 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. right you know the history of the bond market going back to again to nine hundred eighty was the beginning of this twenty six twenty seven year 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 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 in possibility because they are going to signal to this massively over leverage 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 will be of panic sell of bonds of course they'll be a blond 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 of the situation and wall street is our master would 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 it as a model so or will cop. in two thousand and fourteen the price of oil and and then came damn 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 and the lower rated spectrum of those energy junk bonds year old spiked over twenty percent and companies that needed to roll over that debt meaning

their bonds came due in 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 and 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 it's junk bond yields blow out and created freezes. across to create a company and they having trouble raising money you know you've got. to pull c rated yields 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 that means iowa . well if i mean ok the credit freeze and energy market they've backed off and there was 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 stop 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 supplies 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 and 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 gun fight with a knife. 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 are they 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 is j.p. morgan h.s.b.c. b.n.p. in france or a bank in germany has been allowed to operate a insolvent institution purely on the largest of the public's free money anyway we gotta go thanks for being on the kaiser report here. all right that's going to do

it for this edition of the kaiser report with me max kaiser stacy i would like to thank our guest well fred her of wall street dot com if you want to write us on twitter it's guys report that i found by all. your column say that. something is good. oh but. fall for. whatever. the principle is good of the principle is bad has to be applied equally and that is being done. in the heart

of the swiss alps this is a place probably more secretive than the pentagon more mysterious than the cia and guarded than forty six customs are here permanently all the science is controlled by them and they impose the opening to. the possibilities from the procedures in place of the strictest in all europe must to pieces by artists like and modigliani i can't and soon inside this warehouse that's where the report comes in it covers the deals with naturally discreet commercially discreet but also discreet secrets they concern fraud. some of those paintings are linked to dark secrets nobody knows how many of these secrets they kept inside the geneva freeport strong position that you'll never obtain an inventory of all the works in the freeport who knows how

many there are three hundred three thousand three hundred thousand it's a matter of confidentiality only is it the world like the our business. breaking news president from signs an order imposing tariffs on steel and aluminum imports into the united states this by international condemnation. multiple casualties have been confirmed after the terrorists shelled civilians trying to escape from eastern guta through a humanitarian corridor or that's according to the russian defense ministry journalists were also called for in that shelling. the u.k. home secretary confirms a former russian spy and his daughter were poisoned with a nerve agent from our politicians and media took up the kremlin's possible role rules out speculation. this investigation we must avoid

speculation and allow the police to carry on that investigation. so joining us this hour this is r.t. international. the us president has signed an order imposing tariffs on steel and on the minium being imported to the united states but in a concession to america's neighbors the tax will not supply to canada or mexico today i'm defending america's national security by placing tariffs on foreign imports of steel and aluminum the american steel loman image astri has been ravaged by aggressive foreign trade practices. it's really an assault on our country. ok let's go stateside now to speak to r.t. samir a current is in washington d.c.

he's been following events there samir a lot of people would say this is a bold step from trump because he's ignoring the warnings from many experts that this could start a global trade war what's the latest. well he has signed this section two hundred thirty two proclamation on steel and aluminum tariffs announcing a twenty five percent tariff on foreign imports of steel and a ten percent tariff on foreign imports of many of saying that this will encourage companies to buy american now trump also says that protecting these in industries will guarantee economic and national security but even though trump received some domestic applause from unions the world wasn't too happy let's take a quick look. at

your shit you're. choosing a trade war is surely the room prescription for china will certainly make it appropriate and necessary response we will defend our interests if need come. i'm convinced that increased terrorists will hurt us all in the long run trade. and easy. what's interesting is that trump has stated in the past that there is nothing wrong with trade wars but while the u.s. has imposed these tariffs other allies are threatening to impose tariffs on peanuts juice alcoholic cetera now this move has been met with backlash from both republicans and democrats who say that it actually harms u.s. national security so it looks like trump is ready to take the risks but it will be interesting to see how china and the e.u.

react to this write up today the latest status america in washington thank you earlier on we heard from economist. told us that the new terrace will hit the pockets of ordinary consumers. people who are really going to come out worse from this are american consumers including the u.s. military i mean they're importing a lot of steel for the u.s. defense budget from south korea and one of the reasons that trump has given for this policy is strategic defense reasons is so dumb it just doesn't add up. in terms of proportionate responses from the e.u. in china and so on i would argue and a lot of my colleagues would argue that it would be equally dumb for the e.u. to impose tariffs on things like harley davidson motorbikes because again the people who come out worst of that ever come soon as being calculated for example

that for every one job saved by this tariff in position for steel allowed you minium in the united states the u.s. economy will actually lou lou five jobs that adds up to one hundred forty six thousand jobs that are a risk because of this policy by trump. multiple casualties have been confirmed in syria. after terrorists shelled a large group of civilians who were trying to flee the besieged enclave that's according to russia's defense ministry says nearly three hundred families were in that convoy of russian and international journalists are also believed to be targeted by the shelling. of looks into the story. according to the russian military the three hundred families had allegedly gathered together to leave eastern ghouta crossing the frontlines is always dangerous so it's best done when there's a safe window with the agreement of both deliverance the syrian government was

waiting for them the rebels this he knew what was going on and shelled them they reportedly shelled the procession of civilians i mean a kilometer before they were out of east ghouta and then to top it all off they shelled the relatives and journalists waiting in the syrian side at the end of the corridor nothing's changed they aren't allowing civilians to leave just like the islam islam is brother and did in aleppo. and then he. started it that. he never said here it wouldn't have. got to. look at. what they said about even any is. actually in some sour city kind of thing. yet here in washington tell it you don't mention that they think it's joke like we're russia

has called for these jokes like humanitarian corridor wars russia needs to just do what the united nations had agreed to and voted on and that is a countrywide ceasefire freeing civilians would mean less human shields it would be a p.r. blue people don't want to stay with the rebels they'll talk say all sorts of horrible things about life and the jihad ists they'll challenge the narrative why let them leave too many problems take also rebel shelling of damascus blind aimless shells peppered damascus daily for years now so many dead and still. dying still to die yet you won't see any hysteria about that in fact you won't hear much of tool they won't admit that rebels are keeping people hostage because that justifies

assad's operation as do those that die in rebel shelling so why mention it it ruins the narrative it's so much simpler when it's all black and white but most of the united states press is clearly on the side of the rebels they believe that assad is an evil person who is running an evil regime and they'd like to see it all and therefore stories about the suffering of syrians in damascus because that rebel argument don't make much impression and occasionally they get through the stories but they are they're not they're not the overriding story which is that this is a brutal regime and refuses to make compromise and sleeting to a very lopsided narrative. well that was just hours after a humanitarian convoy was temporarily prevented from entering. the military

developments on the grounds of monday shellfire forced another convoy to turn round and leave the enclave situation in the area. of think.

a former russian spy of these dogs are all believed to have been poisoned with a nerve agent according to u.k. police so again you are in a critical condition after being found unconscious in the city of souls on sunday the country's top counterterrorism officer says that the were deliberately targeted . this is being treated as a major incidents involving attempted murder by administration of a nerve agents i will not be providing clear information at this date about the exact substance that has been identified so basically pal used to serve in russia's military intelligence in one hundred ninety five he became a double agent passing data to the united kingdom russia call script file in two thousand and four later convicted him of revealing the identities of russian secret agents in europe he was sentenced as a result to thirteen years in prison but he only served four of those before being

released as part of a high profile.