the real news is that plane. oh max kaiser this is the guy's report you know it's amazing somebody came up to me at the crypto conference here in puerto rico. this guy created. and handed me a chain and said thanks so much for supporting the economy and it's a very rare. token and there's going to be more about this coming up in new york in a few short weeks a brick cited by the stay tuned for that let me well let's stick to puerto rico for a second stacey what's happening what is your name weaponize that's the thing all means are weaponized and the battle of the mind as brought tears told me we are

constantly fighting the demons in our mind that we are the heroes of our time i think there's a famous song. that brock likes to play very well to breakfast i want to talk about debt as you know puerto rico had the seventy billion dollars of debt when they first went bankrupt and defaulted on their general obligation bond payment of two billion dollars on july first twenty sixteen than the hurricane maria hit and right before that and they have about ninety five billion dollars worth of damage on the island so a lot of debt a lot of debt and people in america you know as congress debates 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. spike's one point two surely in dollars in six months hits 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 now 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 a 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 central banks you pots if the crypto billionaires if the crypto economy if all those young guys like china think and solace 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 that 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 has been on our show a few times or proctor who's really visionary and ingenious you know they say that eventually the federal government will come to the crypto community for a bailout because the crypt 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. 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 the john oliver show you know. 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 back to go back to the devil's island over there in the north atlantic and leave us free speech loving folks that are building the products in the economy that he himself and his countrymen end up benefiting from the shut up and leave but i want to also go back

to this debt because remember i said that the original debt the debt that it cumulated and cause. 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 big spiked by seventy two point eight billion so that's what it means to have the ability to just print money and just like create a lead 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 a ledger 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 to have a stair to you have to do whatever in order to you know even be

a let allow you to economically exist if you want to understand how big going trades just put. overlay them one is the us dollar what is the big prize as the u.s. dollar has moments of strength in the otherwise long multi decade bear market to oblivion you see a pressure on bitcoin as the dollar will resume this bear market and its new all time lows on the dollar index below seventy you'll see it going hitting new all time highs but the dollar is the devil's currency the dollar is the currency that supports the establishment that supports the charlatans and you know it does have a strong days but the trend is zero and us a lot of people on you tube really liked my quote about the lionfish being the predator or the quibbling to the predator that the us dollar in this post bretton woods be out world post gold standard world the one nine hundred seventy one that they had no predator there's no competition to it let's discuss or tweak

a little bit more about the lionfish because it has been retreated now multiple times and it's gone viral as your insight and comparison to the lionfish is now braced by this community globally you are saying that the line fish when it was asia had no predators and around predatory yet in an ecosystem that was balanced and yeah didn't overpopulate and gold now it got into the atlantic and it has the predators that it's become ubiquitous and uncontrollable so you're saying big coin really has no predatory no mangled that the lion fish i think is the lion fish we sometimes call it the tiger fish the line on a stick. it's the lion fish it has loads of predators it's in harmony with the economy in the sea in the oceans of asia pacific and 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 are able to gobble gobble gobble gobble and they dominate they are the emperors of the sea there. because there is nobody who can compete with them and it's 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 between has stored that that is a predator that has 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 couldn't agree more in a great analogy and people were you know we're gravitating toward it and i think it makes a heck of 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 poll you know 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 chinese 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 development a reform commission with the social strata 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 low scores 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. it's going to look pretty bad so in other words like tuber or e-bay there's a rating that's generated not by a fellow users but by the government and everyone in the country is a 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 soldier 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 delaminate a few million you know you've got to be capitalist all the way you just can't be a capitalist on the way up and to tell terry and slaughtering folks on the way down . to budget 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 default it's 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 the shrinking because you're too far into debt is not going to go into free fall because you're 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 fricken silicon valley in new york and money center banks that we understand that you encourage on federalism in failure is not the negative stigma they think it is it's the beginning of an entrepreneurial career to build an economy that's why this place is going to succeed they go to g.d.p. in puerto rico is going to eclipse china well in ten years because here they're not afraid to be honest when you're a camp lately 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 all bill go away. the most expensive fish in the world each one is selling for the 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's only remnants of a much larger mission was once there 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 geared for long term survival and that's why we have the catastrophes. that your sudden passing i finally just learned you worry yourself in taking your last long term. care act up to us we all knew it would i tell you i'm sorry. so i write these last words in hopes to put to rest piece things that i never got off my chest. i remember when we first met my life turned on each.

and my feeling started to change you talked about more like it was a key still some more fun. those that didn't like to question our arc and i secretly promised to never again like it said one does not leave a funeral the same as one enters the mind gets consumed with death this one differs i speak to you now because there are no other takers. to claim that mainstream media has met its maker. looking back to the guys report imax guys are time now to go to harry dead author and i guess you could say futurist for the most well respected names and transformed casting very welcome great to have you know 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 of 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 can you 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 in areas like that because you know that two thousand and prices set 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 filled with 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 but that's what they're doing it's a temporary measure now we're living on quantitative easing i mean if it be one

thing a day to 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 of perverts the system we're just getting all this money is going into speculation when in the end come out of the so-called banana republics you know you. talked about it's failed economies and they say you know i think out of that 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 it 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 peninsula institutions not retail investors or foreign investment companies are the only net buyers out there buying their own stock they're issuing stocks 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 percent a smi 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 in japan their financial the yen japan's running out of bonds the buys of their mind their stock market and corporate bond soon i mean this is treason biz there are risks and you follow cycles that you follow eighty year cycle and hundred years cycles let's talk about a multi hundred euro cycles 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 that sly theory now your theory the economy likes to rebalance it likes the d. leverage with had the greatest debt bubble in history i can compare it to the one of the roaring twenty's this is so much bigger debt causes financial asset bubbles asset bubbles have to burst i mean real estate is getting so an affordable that it did people in hong kong living in sixty six square foot closet apartments that's crazy so so it's bad for the con the con of the likes to rebalance governments did not let that happen when it crashed into the. they deny that was the great depression that our economy is like to rebalance soon 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 by by repudiate the business cycle by artificially keeping it going beyond its lifespan 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 your thought yeah i think they're they're running out of stimulus and ammunition and the final thing has been just tax cuts and some this is more something for nothing corporate profits are the highest they've been in all of this be compared to the p.c. and he's giving them talks time. on wall street now he's rolled back a lot of the reforms ok some of 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 is soon as they knocked out we've got this great bubble the tech bubble now we've had bubble after bubble 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 crypt the market is at a kid's show a 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 it 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 down to the soothing side.