pressure expel sixty u.s. diplomats and shots the american consulate in st petersburg copying washington's move over the sprint phone case while the state department says it reserves the right to respond further. sources close to wiki leaks say the ecuadorian embassy has long julian assange internet access to stop people tweeting about catalonia and design if you must one says you must get back on line. it's really important that he's got access to the world by all the expos your money. and netflix users threatened to boycott the online entertainment giant as a points president obama's former national security adviser to its board of

directors. my colleague rory satiate joined you for an in-depth look at today's top stories well coming up now it's the kaiser report. oh america eyes are this is the guys report you know what's amazing somebody came up to me at the group the conference here in puerto rico. this guy created. a chain is it thanks so much max 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 birch cited by the stay tuned for that let me stick to puerto rico for a second stacey what's happening what's your mean weaponize that's the thing all

means and weaponized in the battle of the mind as broad purists only 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 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 to us gross national debt spikes one point two trillion 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 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 our worst homeless people shooting up smack on the streets that's a direct result of the federal reserve banks policies to keep insolvent banks

zombie banks like j.p. morgan goldman sachs from having to declare bankruptcy and result in 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 if they make this this 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 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. 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 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 a lead on your own. you know permission 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 letter 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 because it's 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 pressure on bitcoin as the dollar will resume this bear market and its new all time lows on the da. and. 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 tweet 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 when it was asia had no predators and around i'm going to predatory yet in an ecosystem that was balanced and the added overpopulate goal now 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 product or no mangled that the lion fish i think is the lion fish we sometimes call it the tiger fish is a 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 bitcoin has stored that that is a predator that has now been introduced into the my. monetary system big point 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 a 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 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 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. in eyes 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 than free market but now that the debts become burdensome and their economy is shrinking it's back to mal eliminate 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 slaughtering folks on the way down it. 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 obedient 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 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 frickin silicon valley and new york and money center banks that we understand that you encourage entrepreneurs 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. g.d.p. in florida is going to eclipse china well in ten years because here they're not afraid to be our friend or i can't play i've ever had an egg roll i can step away and out 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 don't go away.

apply to many clubs over the years so i know the game and so i got. the ball isn't only about what happens on the pitch for the final school it's about the passion from the families it's the age of the superman kill the narrowness and spend the tribute to the twenty million and one player. who gets an experience like nothing else going to because i want to share what i think of what i know about the beautiful game a great so one more chance with. the base. level one hard selling you on the idea that dropping bombs brings peace to the chicken hawks forcing you to fight the battle is going. to stop to try to tell you that the beach gossip the public myself of the most important day. of my advertising telling you i'm not cool enough to buy their product. on the

hawks that we along with all the walking. then walk by wagon that he will go by car go up. or yours will pull you out of a. good obit and him off and then what about and i didn't do it will always be the good is it also. or no poem to house hold. on a politician over the. internet and. keep it or done or don't let you be come up with the truth. keep on telling him how to get about the irony of an abbott that grama the money on his i'm. not bad was the intended but oh november bit of icing i give them the

edge on a little point about on it and without al the old being as has it and is about. 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 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 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 anyway it's 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 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 would 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 monetization 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 in that buyers that they're 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 fire back on stock it should all of that should be exactly in the central banks also buying stocks right now in japan their financial the yen japan's running out of bonds buys so they're buying their stock market and corporate bonds to mean this is treason 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 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 all of you all of darks with everything and a bunch a service that are with nothing what do you think about this life area now you're out there and 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 this was 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 of con and he likes to rebalance governments did not let that happen when it crashed into. they deny that was the great depression that our economies 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 by by repudiate the business cycle by artificially keeping it going beyond its lifespan 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 you thought yeah i think they're they're running out of stimulus an 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 g.d.p. and he's giving them talks trying 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 in the governance of these other regulations it 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 what we need at this since they not that 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 if 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 cycles i've given let's say you're not a crypto expert or say but what does this smell like what does 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 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 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

communication stuff 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 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 have a little lot of thousand flowers bloom and then pull out the rug and see who's still standing in the nation where the essential banks are make light 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 kind of sewer of cycles what i was listening to speak today they're like i found a cycle recently it's the cycle and i talking about the price a cucumber is a nine hundred forty seven versus 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 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 ice. the block chain 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 it threw everything upside down and a lot of ways that better reserve bank dropped interest rates for 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 all right tell us there are lots 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 after 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 a very good cycle right sunspots it sounds a bit arcane 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 it 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 say 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 better half. 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 is 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 slice the natural cycle i mean like mario drugs in the kitchen sink i will point is much money to take so that's insanity but they're doing it right to make it centered on that front finally dahlia live in puerto rico you know and you're not part of the way the economy north of the john paulson benefit or shift if coming up at a race that like you've been here for twenty years twenty five years while i've been coming here or coming here any 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 flavor 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 rake out how far it'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 that this country small enough and in the country in the industry still an example where you can really prove the concept out you know like likely. so they want to buy up land and have 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 house a territory of a bigger country kind of a country kind of thing if it is not politically it's like other going to overcome those challenges are well again and you know the government well consists of getting the need to shot me on the right in the farming industry was the old one now that's gone the toxins and i'm so so they need this and they're going to support it my only question ok because i mean demographics are good when rico is lost fifteen percent of the population is headed 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 especially up the desert and only one on that cliffhanger harry dent thanks so much for being on the continent i was going to do it this edition of the kaiser report with a nice guys or as they say 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. . most people think just stand out in this business you need to be the first one on top of the story or the person with the loudest voice so the biggest story in truth to stand down in the news business is just the dance the right questions demand the

right answer. questions. the russians are coming for well over the last year and a half this is the message western audiences have been served up twenty four seventh's what is behind this hysteria what does this message aim to achieve always russia is supposed to react importantly are we facing a possible conflict. and there are some for some it's all of them. i don't know just to. be able to do a little critique. i'm not critical of what. you know down the road you but.