whether or not to help the people of puerto rico out as they would any other u.s. citizen like those in texas hit by hurricane harvey or those in new orleans hit by hurricane katrina you know there's usually more funds forthcoming to help americans develop and get better so i want to look at the u.s. debt situation oh those people who point their fingers to us gross national debt spikes one point two surely in dollars in six months hit twenty one trillion dollars max twenty one trillion dollars. yeah well you know the g.d.p. of america is not anywhere near twenty one trillion dollars you've got a country where the debt is well above g.d.p. it's as a function the assets on the books of the central bank four or five times bigger than the central bank it's way out of control the other way they can manage just to keep interest rates artificially low and of course that creates the wealth and

income gaps that result in san francisco where you've got billionaires and it's our first home most people shooting up smack on the streets that's direct result of the federal reserve bank policies to keep insolvent banks zombie banks like j.p. morgan goldman sachs from having to declare bankruptcy and a result of social unrest results in all kinds of manner of destitution think social banks you pots if the crypto billionaires if the crypto economy if all those young guys like john the thing gonzales from the last episode. they make this the sort of switzerland of the crypto global economy it could be that puerto rico one day is has to bail out the federal government might be the other way around well you know when i talk to people in the crypt community like jamieson a lot for example who's been on our show a few times or proctor who's really a visionary and a genius you know they say that eventually the federal government will come to the crypto community forum. because the grip the community will have the only hard

assets that you can move around with any kind of speed and regularity this brief respite on the crypto market cap down from eight hundred something billion to three hundred billion is one that will be taken to a new high of multi trillion dollars and the sell off of two thousand and eighteen will not be visible on the long term chart just like the previous sixty to seventy percent sell offs are not visible on the long term charts it does give a bit of a showcase for charlatans like nouriel roubini or paul krugman who are establishment lackeys who like to espouse propaganda on behalf of their overlords on wall street sure but those people need to be ignored john oliver over there at the john oliver show you know h.b.o. he is you know throwing shade on a trip though in a way that would not be allowed by law to be in the u.k.

so john oliver like piers morgan before him pack up his bags and go back to the devil's island over there in the north atlantic and leave us free speech loving folks that are building products in the economy that he himself and his countrymen end up benefiting from the shut up and leave and i want to also go back to this debt because remember i said that the original debt the debt that it cumulated and . puerto rico to default on the general obligation bond payments was seventy billion dollars well the u.s. gross national debt in one day last week one day spiked by seventy two point eight billion so that's why it means to have the ability to just print money and just like. on your own. you know permission and ledger to create seventy two point eight billion in new debt and to be outside a system whereby it's not a british permission on us. for all to participate equally here the united states

government the treasury has a permission ledger that only they can control and they get to create as much money as you want but you outside it in puerto rico you have to basically suffer you have that authority you have to do whatever in order to even be let allow you to economically exist if you want to understand. just two charts overlay them one is the u.s. dollar what is the big prize as the u.s. dollar has moments of strength in the otherwise long multi decade bear market. pressure on bitcoin as this bear market and all time lows on the dollar index below seventy you'll see going to a new all time high but the dollar is the devil's currency the dollar is the currency going to. support. and you know it does have a strong day but the trend is to zero and notice

a lot of people on you tube really like my quote about the lionfish being the predator the predator that the u.s. dollar in this post. world post gold standard world of one hundred seventy one they had no predator there's no competition to discuss or tweet a little bit more about the line because it has been read multiple times viral. and comparison to the lines braced by this community globally. aligned when it was an asian. and. an ecosystem that was balance overpopulate and now it got into the lunatic. predatory and it's become ubiquitous and uncontrollable so you really have no predators no really mangled lion fish i think it's a lion fish we sometimes call it the pike. the lionfish has loads of

predators in harmony with the economy in the sea and oceans of asia pacific then somebody dumped one into the the ocean off of like pensacola and now it's exploded in population because they have no known predators there but now it's like consuming all so they're able to gobble gobble gobble gobble they dominate they are the emperors of the sea there because there is nobody who can compete with them and made a toxic environment because of that just like our global economy we have a toxic global economy because of the monetary system didn't allow competitors now bitcoin has stored that is a predator that is now been introduced into the monetary system big coin is the apex predator now they're in there and you've got to you know you've got to shape up you've got to start acting better if you're going to be a central bank competing with this new monetary system could agree more great

analogy and people are gravitating toward it and i think it makes a lot of sense so you know the united states. record amount of new debt added in boom times theoretically boom times and yet the government is issuing record amounts of debt so who do they owe most of the debt to china so i want to look at in these last four minutes here at the future of what the chinese run more pull economic powerhouse might do about their bad debt or because of course here puerto rico where the bad debtors to the u.s. mainland now u.s. is bad debt or to china china will ban people with poor social credit from planes and trains starting in may tiny citizens who rank low on the country's burgeoning social credit system will be in danger of being banned from buying plane or train tickets for up to a year according to statements recently released by the country's national divel.

in the reform commission with the social to credit system the chinese government rate citizens based on things like criminal behavior and financial misdeeds but also what they buy say and do those with the most porous get have restrictions but if you're bad debt or if you have a lot of debt and you haven't made enough payments. you you are you get bad social credit so. if you apply that economic level what is that going to look like it's going to look pretty bad so in other words like tuber or even a there's a rating that's generated not by a fellow users but by the government and everyone in the country is given a rating by the government and if you do something that's anti-government like question the government your rating goes down if you lionize the government and salute the government and genuflect before the all knowing glorious government you get a social rating boost and this is very interesting in china because on the way up during the capital's boom there were all adam smith and free market but now that

the debts become burdensome and their economy is shrinking it's back to mal limon and a few million you know you've got to be capitalist all the way this can't be a capitalist on the way up and slaughtering folks on the way down. but while they were building manufacturing plants in order to feed american consumers it was all great but now that americans owe them four trillion dollars let's see how they are because again i'm going to turn to a story how they treat their own citizens previously the chinese government had focused on restricting the travel of people with massive amounts of debt like echo and farraday future founder g.r.u. tang who made the supreme people's court blacklist late last year the system as it stands is opaque citizens are seemingly just as likely to be flagged for minor infractions like leaving bikes parked in a footpath or issuing apologies that are deemed insincere as major credit defaulters like china doesn't understand them because. a lot of times people get

into debt because they start a company and it doesn't work and so those people need to be encouraged to try again because they are risk takers what matt was saying i mean china is that we don't want risk takers we want a p.d. an authoritarian loving bootlickers and that's not the way to build an economy so your economy that shrinking because you're too far into debt is not going to go into freefall because your don't understand what it takes to be an entrepreneur here in puerto rico they're saying you know what we've got enough american kind of spirit here because we're close to the frickin silicon valley and new york and money center banks that we understand that you encourage on federalism in failure is not the negative stigma that you think it is it's the beginning of an entrepreneurial career to build an economy that's why this place is going to see g.d.p. in florida is going to eclipse china well in ten years because here they're not afraid to be honest when you're i can't believe i've ever had an egg roll i can't stand anyway enough of that let's take a break and cool down a little bit and come back in the second half and see if we can make sense of this

bill go away. the most expensive fish in the will each one selling for tens of thousands of euros it continues to grow its entire life if it was thirty years old you might have a two ton fish out there and yet they don't get that big today because we're way too good at catching. it so we set off a much larger mission was once there that was much more widely distributed we have politicians that are in office for a few years they have to get reelected everything is very very short term our system is not suited and is not cleared for long term survival and that's why we have to contest the season. when you don't. see the. why to get

a court to live to at least not through only ten. maids. let alone they. said. no servant is vastly better. alex you speak french. those are. the same downfall to. talk of. the council itself. when lawmakers manufactured them sentenced him to public wealth. when the rooming closest project themselves. with the famous merry go round lives only the one percent.

who ignore middle of the room signals. the real news is. the world. but come back to the guys report imax guys are time now to go to harry dent's author and i guess you could say futurist for the most well respected names and transform casting very welcome great to have you great to be here been following your work for quite a number of years and you've been the author of some really great box best selling author the latest book well talk about your what you are presentation want to see here in puerto rico but i want to talk a little bit about your latest book zero hour and going to give us an overview of what the what's what that's about yeah i mean you know we continue to talk about

this financial crisis that is you know is inevitable governments are trying to push it off with quantitative easing and fake policies and i think it's going to come to have the next few years so that's number one looked out if you think two thousand and eight two thousand and nine was bad this is going to be worse because governments obstructs the stock market up anyway it's like because you know that two thousand a crisis said and we had an extraordinary actions by the federal reserve bank tim geithner came in they came in with tarp and they came in with a bailout and they came in with an extraordinary basically just build the top back up with water and where do they get up out of thin air you can't create growth in productivity and well by printing money out of thin air put out what they're doing it's a temporary measure and now we're living on quantitative easing i mean if it would be one thing if they did come up with a million you know a trillion dollars when the first crash happened and then stop just to make sure the banking system didn't totally fall out but to constantly have the system perverted by free money negative and zero interest rates it perverts the system

we're just getting all this money going into speculation it's not going to mean don't end economies so-called banana republics you know you. talked about it's failed economies and they say you know if they got into debt monetization they're buying back their own debt and that's of course that's always a recipe for disaster and it is not quantitative easing the only difference between debt modification of quantitative easing is that quantitative. think reportedly for what they tell us as an expiration date but that expiration date never comes so isn't this just debt monetization it is governments are issuing and press them out the debt and how are they doing that they're buying their own debt since the markets would never take at all and they're pushing the interest rate down the design adjusted for inflation and sometimes negative so so they're making it affordable for them to float all this debt by artificial means now it gets worse than that corporations are the only net buyers of stocks not no financial institutions not retail investors or foreign investment companies are the only net

buyers out there buying their own stock they're issuing stock they're buying them back to to leverage the earnings per share in a slow growth economy g.d.p. has grown thirty eight percent in the last nine years of the boom and yet stocks have gone up three hundred thirty one protégés three illegal to buy a back on stock it should all of that should be the only exactly in the central banks also buying stocks right now japan their financial the yen japan's running out of bonds a bunch of their mind their stock market and corporate bonds too i mean this is treason this is their risk and you follow cycles that you follow eighty year cycle and hundred years cycles let's talk about a multi hundred euro cycle called feudalism is it possible that these banks central banks will buy back all the equity with the zero percent money to the point where you've got a few oligarchs with everything and a bunch a service that are with nothing what do you think about this life area now your theory the economy likes to rebalance it likes to deal leverage with had the

greatest debt bubble in history of i can compare it to the one of the roaring twenty's because there's so much bigger debt causes financial asset bubbles asset bubbles have to burst i mean real estate is getting so an affordable that of the people in hong kong living in sixty six square foot closet apartments that's crazy so so is bad for the kind that connally likes to rebalance governments did not let that happen when it crashed into. they deny that was the great depression that our economy is like to rebalance that is the way capitalism natural so you eat out the losers out the loon and you have a business cycle and it's painful so bye bye repudiate the business cycle by artificially keeping it going beyond this life span year of you is now or set up for a bigger problem a crash bigger than two thousand and eight and it's coming pretty quickly areas that you thought yeah i think they're they're running out of stimulus an ammunition and the final thing has been just tax cuts in time this is more something for

nothing corporate profits are the highest they've been in all of this be compared to g.d.p. and he's giving them talks try what he learned on wall street now he's rolled back a lot of the reforms ok some in the political arena would say this is what's needed because the banks are being constrained others would say well you know one thing i read a glass steagall and they got rid of some of the other regulations that just gave them fuel so in gauging a lot of predatory behavior how do you weigh in on this that bill clinton repealed this it was set in place after the great depression to prevent it from happening again and then in the ninety's politicians i know we don't need this and a court of law that's exactly when we need it as soon as they knocked out we've got this great bubble the tech bubble now we've had bubble after bubble after bubble how many bubbles can you have bubbles only do one thing in history believe me i've studied them everyone they burst and they don't correct they go down ninety plus percent they don't go down even fifty or sixty they were going to the biggest bubble burst in history ok well here's a here's a question for you we're both attending

a conference there for america and the market has had a huge correction i think is the nicest thing you could say about it in twenty eight tame you are a market historian you follow trends in the cycles i've given let's say you're not a crypto expert or say but what does this smell like what is your instincts tell you where are we in this cycle with crypto harry. this looks exactly like the internet bubble the internet bubble was only one year at the end of the tech bubble from ninety five to two thousand we came in the last year it was much greater it was going up eight to ten times in a little over a year and then it crashed ninety three percent not sixty not seventy ninety three percent but that shook them to suit the solid companies and those companies turned around and end up creating the greatest boom in technology in history called the internet and amazon went dropped five fifty from one hundred thirteen and now it's at sixteen hundred dollars so so to me this is the beginning of

a technology revolution blocked change is real i don't know about most of the coins but that is real and that the internet has gone as far as it can go in communications we can't handle financial transactions and things of value so that we need an internet two point zero on that block chain and it's just emerging but it's going to be volatile and it's going to be more the shakeout and then you're going to get down to the real company and that's that's the only way nature knows how to let a lot of thousand flowers bloom and then pull out the rug and see who's still standing tall in this nation where the essential banks are because of it no bailouts so you work you know i heard a presentation and you really focused on cycles and i guess you're like a connoisseur of cycles site when i was listening to it speak today like i found a cycle recently is the cycle and i talking about the price a cucumber is a nine hundred forty seven vs the i do replacing tires of one thousand nine hundred three and they were the price isn't demographics so that's what drives your work but well i was always

a cycle guy i just happened to trip on demographics in the early eighties just before this massive baby boom way i said look at that holy smoke people have no idea it was about to hit our economy this generation of massive and they're going to cause the greatest boom in history and so i came up with demographic cycles but i'm i was in a demographic expert at the time i became one because i realized this is important it is the most important cycle technology cycles are important again that's why this i see. block change is like the internet on an eighteen year lag that's the way i see it is the bell thing the same way we're in the early stage and it's going to have to settle down and then it will be along with will be a big boom and now cycles of course are predictable and so they're not and that you had an event in twenty eleven nine eleven which really gave kind of threw everything upside down and a lot of ways that better reserve bank dropped interest rates correct magic play and frankly restart the economy and how did that factor in because if you could call it a black swan ok which is

a term from another author i hate the word black swan ok let's this is all right tell us there are black swan happens when you don't understand the cycle and what the way my work goes i started with demographics very powerful cycles nobody's ever done that and i come out and then that nine eleven hit in a change the stock market the stock market was only going up half as much and that's what happens in geopolitical cycles when the world gets risky the risk premium brings down stock valuations so i added that cycle and then later i out of the technology cycle and finally i added a boom bust cycle around sunspots of all things and it's very good cycle right sunspots it sounds a bit arcane yeah ok i got a lot of slight advantage but if it works it works right works and eighty eight percent of recessions happen in down sun's one cycle eleven out of eleven major financial crisis in the down cycle there's no way that's what police also say at the top of your presentation that human nature is never going to change you can't

fight may chair and when governments are trying to which is down is not to do it right before the french revolution there's a huge volcano i believe in iceland which caused the price of bread to go up because the difficulty in growing the weights in france and when the bread got to a certain price it triggered a revelation the links are there but you have to be disciplined to find them and so your work is to. have a discipline to find that what's the biggest risk for you what's the biggest challenge you have because here you know we have about a minute you know a better nap. or what do you what do you constantly battling as a as an analyst what's your biggest risk that you have a real question about it is this quantitative easing the central banks have hijacked the free market system which are natural forces that's what i studied i studied that know that better than anybody in the world but now they take over and what demographics doesn't matter as much when they're just constantly pumping money

in and then people are constantly speculating and do all this stuff and negative interest rates and zero interest rates my models don't work as good so and so but but the way our discipline works every time something happens that i don't anticipate with my present model i know i've got to come up with a new cycle or a new model for really how do i incorporate this quantitative easing because this is never been done before where you just literally supply the natural cycle i mean like mario drugs in the kitchen sink i will point is much money as it takes that's insanity but they're doing it right to make it send it on that front finally now you live in puerto rico and you are not part of the wave that come in with that that john paulson to the peter schiff coming up at a race that like you've been here for twenty years twenty five years old i've been coming here coming when the eight years i've been living here for about two i was kind of part of that way but but i think i came here because i discovered clever and did those two beautiful islands off here and i bought a big lot in the clip right now at the event you've met the jimmy unity and they're

very excited to be here they think this could be a hot spot for innovation of quite a breakout a farce that's going to be challenges how do you rate the prospects for that happening for our trip out and pick going to puerto rico to puerto rico become a hot spot i think is perfect because it's a way to have a test case you know this country small enough and then they come in the industry still an example where you can really prove the concept out you know like like like this. they want to plan a couple crypto city you know i think that's a great idea if they can pull it off because you are stuck on a country it's a i have the territory of a bigger country kind of a country kind of thing if that is the politically it's like i think i've overcome those challenges well i didn't and you know the government will consist of getting the you need a shot in the farming industry was the old well now let's go on the tax incentive so so they need this and they're going to support it my only question ok because i mean demographics are one repots last fifteen percent of the population is heading

towards twenty percent can they survive that demographic hit and do these people come back because that's a big demographic because i've only survived especially after the birth and only one on that cliffhanger all right dan thanks so much for being on the kaiser i was going to do it this edition of the kaiser report with a vast geyser it's a fair bit like i asked harry dent authors latest book it's called zero hour if you want to catch us on twitter it's kaiser report if i stop by l. . how does it feel to be a sheriff the greatest job in the world it's as close to being a king as any job there is good business model helps to run a prison now we do or don't like they're scared you know b.o.b. is the case and they don't no one comes anymore we don't have to sarge them anymore is cost effective that's what they want to do that at the moment they don't give

a damn if you do the chores or not actually paying enough to put it back into. the louisiana incarceration rate is twice as high as the u.s.n. breach what secret is behind such success. for a world cup twenty eight team coverage we've signed one of the greatest goalkeepers of all time but there was one more question and by the way who's going to be our coach. guys i know you are nervous he's a huge star two months and a huge amount of pressure to come out so you have to go i mean eighty percent of the beach but how would you and will stroll all the great to get the british to get

you out of the rock at the back nobody gets past you we need you to get the ball going let's go. a low i was just i want to know and i'm really happy for a draw and out to go for the two thousand and three and world cup in russia meet the special one i was also appreciated needs to just like the reno p.r.t. team's latest edition to make it up as we go so i need to just say look. then what i can tell you well there but i'll go on. or you will pull you out of. bed in the mountains in what about and i did india it will always be good if it also. helps hold. on a partition. to. keep it or don't automatically

come up with a group of. kenyan men about the holonomy haven't had the best them and the money because i'm. not bad with the internet but oh november they give us a rise of i'm there a general point about it but i have the only. and it is about. what you really sure. about the summer that's one o'clock it was nothing but look.

at. this hour's top headlines on our t.v. international i made escalating tensions with russia the u.k. adopts a new national security strategy ranking moscow alongside islamist terrorism on its own list of main threats. with many countries joining britain in expelling the russian diplomats over the souls of m.p.'s in neighboring island voice their opposition to doubling its decision to take part in the action on the program we gauge reaction in the irish capital. i think it's a needless threats to our sovereignty i just sort of look for the proof and i haven't heard any i think it's crazy because we're supposed to be a neutral country and it's gonna be on it's just it's totally on me some of what they're doing tens of thousands of parisians have joined a silent march and on or mode of holocaust.