there's an important question to be off now fraud chips as we call them back in england are a crucial staple of any not so healthy diet but as we call them french fries are they actually french all belgium some content we also spawns here inside pizzas but for the troops. who are belgian i don't know where the name comes from but they're belgian hundred percent so i could repeat. could you could process i. don't know could take you for good policy and get me off the hook new food. my. french one hundred percent sure yeah yeah i'm not sure i don't know before you start you need to know what i am here because you know not what. you say it's french belgians as belgium who did it will feel that it's not been a good thing because. it's down surprise but they did have the name you know

destroyed the post was at the end phone signal to address the new with them from the. t.v. only dog was heavy defeat the phone says it but me to visit a fan chimed in france again in front of the right is also going to win but belgians are going to have the fries and. french fries he's from bajor so it should be renamed to bill's and that's yes that's right so maybe the winds can decide the name yes yes we can do that. but that's it for me fine i'll be back with our special coverage from st petersburg next hour you can also of course get all the latest on all social media or website called as they soon for all the latest a lot of.

well you know it's my scousers. time as a report. it makes you look at me a little bit so ho in london you know this. beard stuff growing. beard hoping to get some like is easy top you know yeah and she was a lot sort of look yeah there was a lapse inspired me i'm going to grow a beard needs. it is the way to be a hipster but you know what we're going to talk about basically that's all that's left to be in america as a hipster if you're because there are no jobs there's no nothing really happening there and of course trump is trying to make america great again so we're going to look at two headlines from wall street dot com wolf rector and he's looking at some

the two state of the economy and the true state of some economic policies and trade policies going on including the terrorists which is shocking information that i had no idea about the first we're going to look at a company you and i will have known from growing out and that was toys r us which was a big successful company you know it just sold all these toys for children and it was very it was all over the place but then private equity bought it out and now the company insists no longer well this was in three days the last toys r us store is die m.p.e. firms behind it question mark well on june twenty ninth that's remaining stores in the us closed and then it's over for the iconic retailer one more victory for p. e. firms private equity there plowed into retail during the leveraged bio boom before the financial crisis lowden the them up with debt and washed them collapse and what i have come to call the bricks and mortar meltdown toys r us is just one of them p.

e. firms kohlberg kravis and roberts vornado realty trust and bain capital acquired the publicly traded shares of tories are asked by a six point six billion dollar leveraged bio in two thousand and five they funded the act was just in large part by loading up their. hired company with debt hence leverage buyout and other words the p. e. firm had little skin in the game and over the years extracted four hundred million dollars in fees for themselves while the company collapsed yeah that's right it's the leveraged buyout. catastrophe shifts equity and power to people every cravats of kohlberg kravis and roberts and that's been going on now for thirty years but not all p. e. deals are terrible you know like dunkin donuts was taken over by p. and they've expanded the mole skin franchise was taken over i think burger king was

a no in the hands of private equity so you know but most for the most part they extract the equity they extract cash and they leave the company to collapse all the jobs go missing is part of the repay shows old hyper squat unquote capitalist cancer that plagues america yeah but remember we discussed in the last episode the fact that the central banks and our governments continuously give these sort of guys all the capital of the free capital in order to repair the economy when what they end up doing over and over and over and over and over and over is this they just extract equity take hundreds of millions of dollars for themselves by another you know penthouse on park avenue and another place in the hamptons and another yacht perhaps they park over in larchmont or mamaroneck or somewhere like that and that's what they do that's what they they don't build anything they don't add jobs they don't add value in fact in this case

thirty over thirty thousand employees of the company gone no pension no nothing they get nothing no pay out they've gotten there were some employees that actually had worked for the company for thirty years this is how much they got zero zero dollars for their payout for leaving the company but the other important thing is that this isn't like how we have structured our society. and it's so ingrained this vicious nasty equity extraction form of capitalism that where all these private equity firms get their money is mostly from our own pension funds well among the biggest investors in p. e. firms are public pension funds they provide about twenty percent of the three trillion dollars in assets managed by private equity firms public pension funds like the accounting of investing in p. e. firms these investments are considered illiquid and long term and don't get marked

to market this gives pension funds the illusion of stability during times of market turmoil and they don't mind the sky high fees and private equity firms love public pension funds because that's where the money is and the sky high fees is a symbiotic relationship so here we as a society we are taxes pay for those public pension funds we pay those employees the this upon a public pension fund manager then hands it all to a private equity firm who then destroys the economy around us thus destroying our ability to even pay taxes so it's a stupid game play i mean just paying henry kravitz some money so that he doesn't shoot in the head essentially the private equity firms are gangsters and the pension funds that could be cowper's out there in california are pension funds that . henry kravis goes them and say give us your money so that we can destroy toys r

us all these other companies and destroy jobs we're going to blow your brains out and you're going to get nothing and they threaten them and that's the predatory nature of markets are working today he has a nice suit but he is like i just saw a photo of someone pulling like a forty inch leech out of their nose you know henry kravitz is that leach off line that photo for it like that so every crevice use that authority is a leech and then. those of america but you can't pull them out these embedded and so much is about that illusion the illusion that the public pension funds like that they don't mind paying real wealth taken from pensioners give it to these guys in order to maintain the illusion that they're somehow doing a job that they are somehow actually. getting out eight nine percent annual returns when they're not the illusion of so much of our economy when you drive across america as we have when the illusion is that nafta and all these trade deals have

helped the american people but we drive across america to find out do this is like a disaster is known here and that is the next headline with wall street regarding these auto tariffs that trump wants to apply to europe and china and i thought ok the guy's deranged right what is he doing but actually there's some support behind it according to what wall street says is beyond the hysteria about auto tariff mageddon. president obama's threat to impose tariffs of twenty percent or twenty five percent on auto components of vehicles imported to the u.s. is causing a bout of hysteria that is splattered all over the media but the fact is the e.u. imposes a ten percent tariff on all cars s.u.v.s compact s.u.v.s mansome pickups imported from the us the us only imposes a two and a half percent tariff on imported passenger cars s.u.v.s compact s.u.v.s and vans from the e.u. and a twenty five percent tariff on imported pickups which is a tiny share of the e.u. market again that's so the e.u.

imposes ten percent on our cars that america ships to europe and we only impose a two and a half percent tariff on them china imposes a twenty five percent tariff on all imported vehicles but offered to cut this to fifteen percent as a goodwill gesture in the trade war to get around the chinese tariffs and sell vehicle so the one point three billion chinese consumers all global auto makers have invested billions of dollars in china has set up a large manufacturing facilities and required joint ventures with often state controlled chinese companies and have submitted to the required technology transfers g.m. now makes and sells more vehicles in china than it does in the u.s. and this is what he says we need to do with china as extracted this wealth creation they've forced these companies start start creating wealth inside china through their tariff system and this is what china is trying to do so well you know let's revisit a concept that we've discussed on this show many times prices are wal-mart are

cheap because people have given up their jobs to chinese manufacturers who can do the same thing for you know ninety eight percent cheaper and so the illusion is that the american lifestyles are falling apart because even though you're making a lot less you are getting the same stuff at a much reduced cost the illusion again you're right the illusion so now if the game . name of that particular trade nightmare and what trump is saying hold on let's move those jobs back to america by imposing tariffs to equalize the trade picture and move toward a post china extraction model you know where as private equity extracts wealth using leveraged buyouts china's but extracting wealth using the leverage trade shenanigans so this is just the reverse of that and trump as i hear in some people's voices starts to make a little bit more sense that people don't understand that this guy actually

understands more than people are giving him credit for yet like i've seen in the streets and i believe the streets again just like i believe the shrieks of how the fact that hillary would win the same people told me like this is all streak were they and there's that trump is drange and these are our allies i never heard from them and i did not know for example that the e.u. imposes ten percent tariffs on us and we only have two and a half percent and that like that doesn't seem fair it seems why do they do that in order to maintain their own knowledge base manufacturing base wealth creation base in germany and the way to get away with it domestically to say this is great for you the consumer yes yes right that you're in another way that the left is pushing back against trump is by saying wait a minute consumer prices are going to go up people will be able to afford stuff like they could before and so the quid pro quo is well it means that they do get a high paying job again so they will be able to for the stuff because i'll be

making more right so the left is financially illiterate and they buy into the consumer market compas now let's just do a deal now this guy over at wall street dot com our friend wolf richter wolf richter right here is laying out those numbers clearly and you know you got your big fan of walford there i read wolf richter so anyone who follows this and as politically aware you know starts to look through the numbers and. you start to understand things in a slightly different way like we started at the top of the show this is our us economy is private equity is its k.k. are is blackstone is all those people just extracting equity and leaving a hollow shell what we're seeing here is probably a better model i think let's discuss it nobody discusses it on the news in america but the purpose of tariffs is not to make products more expensive for consumers though that can be a consequence the purpose is to motivate manufacturers to invest and produce more in the us thus changing the equation for offshoring that corporate america has

pursued with relentless passion for decades this aspect of the tariffs is going to last in much like the hysteria and worse nancy pelosi on this earth maxine waters on this where are the left democratic leaders on this you know why are they elected in far left socialist democrats now you know because they just refuse to look at the basic numbers and obviously put a high paying jobs back into america increasing people's wages they can still buy the same stuff but they have the dignity of not being heroin addicts because a frickin liberal nonsense all right well we got to take a break well it back don't go away. they gave us national camera. roughly once the show some new play you for the.

future uncool videos during the boom. and someone with the broccoli string and. down more on string i don't really don't t.v. . like the many clubs over the years so i know the guy even 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 billionaire owner has been spending to get a twenty million. it's an experience like nothing else not to because i want to share what i think of what i know about the beautiful guy but great so what chance with. going to.

welcome back to the kaiser report i am max kaiser you know at this this is twenty four karat gold and that's spent jewelry. this is something very special and we're going to be talking about this shortly but first let answer to royce a bob the founder of gold money and then a royal welcome back thanks for having me max great to see you again sir you two ok now well it's great to have you on because you travel the world you're well studied economist entrepreneur our. deep thinker so we like to pick your brain as well as get your thoughts on some late breaking is now interest rates have been rising trade wars are breaking out everywhere why hasn't gold jumped on the safe haven

buying roy i think it's because rates are actually rising and you know a lot of the fears that the gold camp have had about the rates rising causing deflation nasa deflation haven't materialized yet that's the operative word yet thus far we've seen the federal reserve raise rates very aggressively the two years gone from zero point seven percent to two point seven percent in about ten months and we have seen little to no reaction in terms of the debt markets you know they've tightened up a little bit but i do markets still roaring and we've seen some really really good economic news out of the united states assimilated in part by some of trump's policies in terms of taxes we've also seen a big uptick in. capital spending on the part of companies something that people have been waiting for for a long time so i think that. ultimately these rates rising will cause

a great debt deflation and recession and it will probably start around august of this year when people start to see the size of the deficits on the u.s. budget spending compared to their historic tax revenues because of course their tax revenues now begin to decline significantly in august as out. axis tax revenues are on on the wane and let's talk about this idea about rates rising because i just read nomi prins as books as a book of collusion to talk about central banks colluding something that you know we've talked about something that's known pretty much in the in the community that when one bank is tightening others vaal get more accommodative easing e.c.p.a. bank of japan federal reserve bank so is this cycle what's being called quantitative tightening in the us is it being completely offset by other central banks doing the reverse and so the. net amount of money printing in the

world continues to go up ours is a genuine contraction it's a great question i would argue that the answer is no you see trump has been a wrecking ball not just in terms of his u.s. political race he's actually reminded countries that they start they have to be selfish again we're seeing it in trade we're seeing it in economic policies and i think we're even beginning to see things say in italy where it's starting to break apart from the e.u. it's talking about nationalization it's talking about a different currency so i would argue that the great fear in terms of the next time there's debt deflation or asset deflation is that you will not see a concerted effort on the part of the central banks because these various countries no longer have a type of political will that's sort of game of you know i'm loosening you're tightening i'm tightening you're loosening i can't really tell that only works if there's a global coordinated elitist effort like what christine legarde fielding phone

calls between everyone but i actually think that trump has wrecked that game theory that game theory no longer exists so the what the u.s. is doing is is playing forty chess they're raising rates very aggressively they've lower taxes and now they're starting to take out a sniper rifle and. shoot all of their trading partners with a very very intelligent research reciprocal trade policy said it well when tom says make america great again a lot of people are saying it out sounds isolationist there's another side of the argument as you are describing is clearing the board and saying we want to compete globally and we want to reset the table so it's not only isolationism it's about engaging the world economically and with trade with a hold a set of rules well he's one hundred percent right in that the trading partners the united states have been taking advantage of the u.s. for the last thirty years and it seems to be attributed towards very very dumb

trade deals we know that's true in the case of trade between the e.u. and united states so all he's doing is he's pushing for reciprocity but he's realized very early on that is counter parties are not taking him seriously so now i think that he in a piece navarro who's the economist that's advising him are getting even more aggressive but the key is trump said this once and i think it's a very intelligent comment he said you can't lose a trade war when you already have a trillion dollars in trade deficits and that seems to be something that no one else has quite figured out. like if you owe the bank one hundred dollars you've got a trouble but if the bank or a billion dollars is their trouble right i just i don't think it's the same thing because remember trade is a is a function of flow it's not debt so we've debt you if you owe the bank debt you have to pay it back trade everyone wakes up in the morning and decides at that moment if they want to cooperate with each other they don't have to and i think that the u.s. has been abused for

a very long time so if we go back to this whole story of rates rising right now we're seeing economic growth united states but remember there is another side of this coin which i think is is very relevant to our conversation over the last eight years since the federal reserve begin to engage in extraordinary monetary policy we've seen a tremendous amount of new debt being issued. something in the order of twenty trillion dollars debt if you take a look at say a company like mcdonald's ten years ago it had one quarter of the amount of debt that it has its net income hasn't grown much maybe by about fifteen percent but its debt is exploded by maybe four hundred percent so as rates begin to rise mcdonald's has to begin to think i have to pay more in interest servicing than i did a year ago two years ago i'm not going to spend as much in capital expenditures so my theory is that you've seen the bomb from the capital spending incentivize tax cuts but you're going to start to see companies have to divert their capital

spending budgets towards interest repayment and that's for the aaa companies let's begin to talk about some of these idiots that have been buying real estate at three four percent capital on the for the at its final state so companies they get a lot of debt at these historic low rates has been used often to buy back their own stock but the idea now is you're saying that that's going to be diverted to interest rate payment on this debt and that this a lot smaller companies however when it comes to their exposure to debt but they are taking on a lot of debt how is this going to play out kind of on the wholesale market i mean you take a country like japan there are three hundred percent debt to g.d.p. a they have run through all their domestic savings now they're out looking for more credit they're credit starved if you look at the geopolitical picture what's there really daily. i mean italy is obviously a basket case but isn't like japan potentially where things start to get in trouble well people have been calling for the demise of japan for thirty years trade has

been a widow maker i my view on japan is that they have a very large surplus of water and grains and then they have taken over critical parts of the supply chain for the automotive industry and they also have very important off to agreements for all the most important metals whether it's copper is in the lead in tune so that's why people always misunderstand japan the first. because is japan is an export driven country so people need their exports and i think that's what allows them to always devalue the yen but if we take a step back to your comments the single most important thing there is that i don't see a scenario where the rest of the world can have zero to negative interest rates while the u.s. has three percent rates that's simply won't last and it's often action of just the u.s. dollar rising versus these currencies they're really begins to be a question of what companies can afford to pay three four five six percent at tesla bonds are trading at nine percent and he is already losing all this money there's

no way he can build out his dreams with nine percent interest rates on thirty forty billion dollars of debt so i do believe that while the gold bugs have been wrong about this idea that rates couldn't rise to three percent and by the way i was one of those people that didn't think rate rates could rise to three percent i have openly said that i believe rates are too high i think they've raised rates way too high way too fast and i don't think you're going to see rates go much higher because because i believe that it takes a few quarters for the oil in the sprockets to essentially grind to a halt and that's what you're seeing so it so rates have risen people are starting to think about these things it's also affecting the way market participants allocate capital why would you allocate capital towards high risk investments when you can make a three percent risk free yield today five percent b. plus bond yield so i genuinely believe that the gold story as it as it relates to

gold is right is where right now gold can easily drop to maybe twelve hundred dollars an ounce maybe even eleven fifty but at a certain point in the next three to six months it's going to be clear that we can have no more tightening we can't tighten anymore and we have to start dealing with the next crisis and the next crisis is going to be very very interesting because you don't. i have a global coordinated desire to cooperate you have everyone looking out for their for their own self every country looking out for their own and you have a very very aggressive trump who by the way he's also implementing ten twenty year plans you know we haven't seen that in u.s. politics for twenty eight twenty two thousand and eight we saw something similar where lehman and the best friends were sacrificed the other was the will to cooperate ultimately lehman was like no and we don't want to be part of this bailout so they were sacrifice they are saying this could happen out on a global basis but the central banks to say you know are actually in it for

ourselves not going to go i don't think the euro will survive the next crisis because i think that the euro is so vulnerable you know spain raised debt the other day at zero point three percent. or zero point three negative rate that that makes no sense what argentina one hundred year bond well again argentina is one of these basket cases where you know every few years they just devalue the peso and they just destroy their labor force and they destroy their populations ability to achieve any form of long term prosperity but i think the euro is more interesting because there are cracks beginning to manifest in the relationship between the various members of the european union and i think that when they say that europe simply cannot work with three percent rates greece can't work italy certainly can't work spain can't work so so the next crisis could almost in a weird way see the united states to ok they will have

a debt deflation you will have a real estate bust like we haven't seen in a very long time but it could be like the early ninety's of the late ninety's where you know some of these real estate guys just get wiped out finally because they got bailed out last time but where the real shocks are going to emanate from e.u. emerging markets you know sort of like we saw with the asian crisis. i believe in the weight ninety's where i get hold of thought you know we were going to get very close to the goal but this is just a big set up it's setting the table now we're going to dive into gold and you can say for another segment sure ok that's going to do if this is just on the guy's report with a max keiser and stacy her or think our guest reisa bob he's the founder of gold money and benet joinery just on twitter it's kaiser reported so next time you all.

put themselves on the line to get accepted or rejected. so when you want to be president. wanted. to go to press this is what was before three of them or can't be good people. interested in the walks in the.

the u.k. has a new foreign secretary. it's all over the prime minister's approach leaving the e.u. . a swedish. taken to court for allegedly violating a medical confidentiality after exposing patients claiming to be. being. played belgium in the semi final showdown. on another rival french. i don't know where the name comes from but there. is.