oh i max guys are this is the guys report you know what's amazing somebody came up today at the crypt a conference here in puerto rico. this guy created. and handed me the 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 the birds cited by the stay tuned for that let me stick to puerto rico for a second stacey what's happening what's your name weaponize that's the thing all memes are weaponized in the battle of the mind as brought tears told me we are constantly fighting the demons in our mind we are the heroes of our time i think there's a famous song. that broad 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 heads 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 u.s.

gross national debt spikes one point two trillion dollars in six months hits twenty one trillion dollars max twenty one trillion dollars well 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 of 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 hours homeless 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 thanks 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 bailout 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 israeli visionary and ingenious you know they say that eventually the federal government will come to the crypto community for a bailout because that trip 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 her in a way that would not be allowed by law to be in the u.k. so john oliver like piers morgan before him just back up was 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 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 step because remember i said that the original debt the debt that is the accumulated 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 spikes by seventy two point eight billion so that's what it means to have the ability to just print money and just like 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 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 let us allow you to economically exist if you want to understand. just put two charts or relay 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 to oblivion you see a pressure on bitcoin as dollar would assume this bear market and its new all time lows on the da. and it's below seventy you'll see it going hitting new all time highs but the dollar is the devil's currency the dollar is different 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 spread the would be out world post gold standard world of one nine hundred seventy one but 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 predatory around predatory yet in an ecosystem that was balanced and yeah didn't overpopulate and soul now got into the atlantic and then has the predators and it's become ubiquitous and uncontrollable so you're saying coyne really has no product or no you toiling mangled that the lion fish i think it's a lion fish we sometimes call it the tiger fish the line on a stick. it's a 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 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 bitcoin has we stored that that is a predator that is now been introduced into the mine. an atari 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 in a great analogy and people were you know were 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 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 i'm a 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 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 lie. nies 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 elliman and a few million you know you've got to be capitalist all the way you just can't be capitalists on the way up and to slaughtering folks on the way down to. a buddy 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 a major credit default it's like china doesn't understand often oil is 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 freefall because you 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 but we understand that you encourage us from the realism 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 succeed. p.d.p. employer it was 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 cast 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 they'll go away. if i'm in a surgeon on a terrorist group enjoys fun and sanctuary move no matter how much melissa he put

i show you put on them they will be in the one way on to really hibernated themselves calmed by the time it would be like counting days as i'm not taking the loops. apply to many flips over the years so i know the game and so i got. the ball isn't only about what happens on the pitch to the final school it's about the passion from the fans it's the age of the superman each kill the narrowness and spending to get to twenty million one player. it's an experience like nothing else not to because i want to share what i think of what i know about the beautiful game but great so one more chance with. the piece it's going to.

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 what business model helps to run a prison now we just do or don't like us there's no b.t.o. visitation i don't know one comes anymore we don't have to serve them anymore is cost effective that's what they want to do that loan they don't give a damn if you did so it's on that they're actually paying us to put it back and. the louisiana incarceration rate is twice as high as the usa bridge what secret is behind such success. but come back to the guys report imax guys are time to go 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 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 three 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 the government's obstructs the stock market up in areas like that 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 but that's what they're doing it's a temporary measure and now we're living on quantitative easing i mean to 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 of perverts the system we're just getting all this money is going into speculation like one in indonesia and economies so-called banana republics you know you. talked about is 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 bought at the station a quantitative easing is that quantitative. you think purportedly from 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 unpleasant amounts of 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 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. is growing 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 your own 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 to i mean this is crazy this is their risk and you follow cycles and you follow eighty year cycle and hundred years cycles let's talk about a multi hundred year cycle called feudalism is it possible that these banks central

banks will buy back all the equity with this 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 as life area now you're out there and the economy likes to rebalance it likes to deal 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 have good 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 and he likes to rebalance governments did not let that happen when it crashed into the. they were naive that was the great depression that our economies 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 by repudiate the business cycle by artificially

keeping it going beyond this life span year of you is now are 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 running out of stimulus and manumission 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 g.d.p. and he's giving them the top struck. 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 really 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 don't need this am a court of law that's exactly what we need at this since they not that we've got

this great bubble the tech bubble now we've had a bubble after bubble their 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 am 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 sue 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 drop 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 block 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 communication stuff we can't handle financial transactions and things of value so 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 this 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 in a nation where those special bank from a client as in no bailouts sell your 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 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 wait 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 i wasn't 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. see block change is like the internet on an eighteen year lag that's the way i see it is the belting the same way we're in the early stage and it's going to have to settle down and then we'll be along with will be a big boom now cycles of forests that are predictable and so they're not and that

you had an event in twenty eleven eleven which really gave kind of throw everything upside down and a lot of ways that better reserve bank dropped interest rates or a magic play in trying to 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 the new plots all right tell us there are locks one 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 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 ok i got

a lot of light and bad and if it works it works right works and eighty eight percent of recessions happen in down funds one eleven out of eleven major financial crisis in a down cycle there's no way that's a cooling you also say at the top of your presentation that human nature is never going to change it can't fight made share 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 cause the price of bread to go up because of 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 say your work. 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 better nap. 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 it is constantly pumping money in and then people are constantly speculating in dualist up 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 from 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 to take that's insanity but they're doing it right to make it centered on that front finally now you live in quite a rake out you know and you're not part of the wave that combine 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 while i've been coming here coming here 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 this to 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 of big 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 that you know my place. so they want to buy up land and up a crypto city you know i think that's a great idea if they can pull it off because you are stuck a design a country it's a i have the territory of a bigger country kind of a country town and. if that is the politically it's like other going to overcome

those challenges well again and you know the government welcomes this i think they need a shot myanmar and the farm industry was the old one now that's gone the toxins and and so so they need this and they're going to support it my only question ok because i mean demographics are poor repos lost fifteen percent of the population is tending towards twenty percent can they survive that demographic hit and do these people come back because that's a big demographic and i've only survived specially up to this version and only one on that cliffhanger sorry dan thanks so much for being on the continent i was going to do it this edition of the guys report with the bass guys are safe ever like i guess harry dent authors latest book it's called zero hour if you want to catch us on twitter it's kaiser report of the likes of by l. . the most expensive fish in

a 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's only when it's all for much larger mission was once there and 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 geared for the long term survival and that's why we have the catastrophes that. russia has gone through the highs of suzi zero sum to the use of grief over the camera for the tragedy. the largest expulsion of russian diplomats from the west. how will you really.

feel judged by the needle my dad. and i mean i'm not here. in the mood to. email people who just have images to see so if you want. to get a little bit of an actual again i've got to go to a large city because the. patient is. an old school and i think kids will use it change the rules allow for.

russia tells sixty us diplomats to leave the country and closes the american consulate in st petersburg announces to washington's expulsions over the script. of the u.s. state department says it reserves the right to respond even further. sources close to wiki leaks to the ecuadorian embassy has blocked julian assange has internet access to stop and tweeting about issues this friend british fashion design of us were told is it's essential to get back on line. really important that he's got i access to the world but all the. money just to june. netflix uses of threatened to boycott the online entertainment john says that appoints.