through that tariff system and this is what china is trying to do so well you know let's revisit the 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 that 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 endgame 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 were as private equity extracts wealth using leveraged buyouts china's but extracting wealth using 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 the streets and i believe the shrieks 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 drained 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 right yes right there in the now the 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 on the force. stop 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 afford the stuff because i'll be making more right so the left is financially illiterate and they buy into the consumer market compas let's just do a deal now this guy over that wall street dot com our friend will factor wolf richter right as he's laying out those numbers clearly and you know you're a big fan of wolf work 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 this our u.s. economy is private equity is its k.k. are is blackstone is all those people just extracting equity leaving a holiday l. what we're seeing here is probably a better model i think let's discuss that 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 u.s. 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 electing 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 we'll be back don't go away. across europe municipalities. so taking their water supply back from private

companies to me to people this is the simple song alone even some company else with they invite private companies to take over the utilities anybody else throw blows up the lab so miss you guys you've got. to go buy been pieces of us to quote them out. of more use of the lift bill locals are ready to stand up for the basic human right of access to water it's about water but it's also a much more than water it's about the hurt and the redistribution of all or whether it's. a date downwards we want our. politicians to do something to. put themselves on the line to get accepted or rejected. so when you want to be president and you. want to be.

to going to be press this is what the four three of them or ten people are. interested always in the water. welcome back to the kaiser report i am max kaiser you know at this this is twenty four karat gold and 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 could be 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 our 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 us books has a book out called collision you 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 acid 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 your 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 you know it 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 really 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 of in 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 and pete navarro who's the economists that surprising 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 got 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 with 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 in 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 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 finest a company saying a lot of debt at these historic low rates has been is 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 of 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 be. 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 into latin tune so that's why people always misunderstand japan to the fur. cause 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 two negative interest rates while the u.s. has three percent rates that's simply won't last and it's often action of just

a us 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 for 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 bear stearns or sacrifice the other was the will to cooperate

ultimately lehman was like no 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 where 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 prices because i think that the euro is so vulnerable you know spain raised debt the other day at zero point three percent. you know a reserve or a zero point three negative rate that that makes no sense but argentina's 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 or 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 late ninety's where i took hold i 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 if you can stay for another segment sure ok that's going to do if this is just on the cause report with a max keiser and stacy her or i think our guest reisa bach is the founder of gold money and then a if you are a just on twitter it's kind of

a report and so much time for you all. right we're all set starting five to seven to see here has a signal. it's not going to talk about. just

maybe right after the mars explorers one who would have their new. record. to say last week. ok let's. call them to sophia and tell i'm. not saying today we've got lots to talk about in our program and our gas who. good luck that.

this could be. i thinks events like. this one and give you thing that you. miss. if you don't know. but if you take. this you dog. up even. if the last fifteen years increase in their release we could call a spontaneous emergent track global track of water and it's politicians

which goes in the opposite direction taking water back into public happens only a few years ago the problem was the only game in town. has recently. come up but he she leaned. from forth and. in the case of. the thank you. and i thought all these how to make use of people base but if i needed to call beasts what is the locals the matter is that i guess it's becoming more and will. become highly profitable might be tradeable those people who see everything as something to investigate they want. they want our.

water is the driving force of life. let's guess natural results to which one out of ten people on us have no access. to the sky so it becomes management of it that is who provides water to big cities becomes more significant. for more than half a century this was a domain of private water companies however since two thousand things have begun to

change. ninety four cases of this awful fronts and i think that this is quite important as a transfer especially because france is the country that has invented with the proposition as we know it today the country that those water brought out is a should best. be and yet look at all this on the resource like on. stupid to. heat up your community source and comply. not at all and you need companies in your are digital risk if they don't this it could all upon you consent mistrust you it's just you and you have enough to do is bunk you don't. know when if i don't as you know there are only going to decisions as a decision each year and that easy. so do you. live are you separate

a party or. the successes to that era are today's french multinational companies veolia and suez two of the world's largest private water corporations. do you see. this to see. you. stoic and see in. your. local more lessons scenario. a yes. this was all cindy looked more. developed morsels or.

was bought out but i put it on the full issue and it was for me to call them what would you have been seen qualities. is to start a new. jaxa deadworld only breed you should have. a fair good libby did know our junior fast. a precaution. or be to shoot a d.v.d. says you deeply deeply if you're very excited about it all but donna. he's appalled that they're not by. to leave it was a trade unionist and veolia when he started to publicly condemn company practices. that cost him his job and led to a long legal battle that ended with him because owner rated and rehired by veolia.

going to give us up on that mack video eve did you daily mail for decided to mention last year extraordinary something to me on the all. demo i think the field shows. a protest on that. it include moon do loop until just the emotional see the call by the lake top. it off then it how many ma owns that it would sound it will them or is truly key fail is reduced astraea liverpool to the neon i phone it. is suss it will pose us physics that stick to employed by them and then they get

a piece. of on the inside of the tall tall dougal see little down to postpone i do it courses from. new on up at pretty you she owned bottom and there it is that's when the only person see it big enough zoom out on this when i. close down says all still cool all in new for i'm going pretty bleak. did a guest show ibut to try to see who of course he had to go along to this or not don't lose each see the family. the b.s. you know there is a unit out there that pounding we. might miss. when he's not on our.

way. in that side nines or not nicest person i know and since i was in the lead in the only possible gun and yet i'm political satire. this newsgroup. do this fun get. this to do such and this must be done. as a display towards them and my heart goes out to. the teachers and sledged. and . now this all does lidy want to we once allowed to go and meet him but if you'd said if it's yes it. can barely no matter between ricky preventives it wouldn't and i would ask him.

it could be never chaffed it i'm just one billion up the first one out there does not believe. for sure it had this affair for infant i see. sure it why does in their living space and when they shouldn't and wish to put it out to see it all neat militia thought that. colin to show the social democratic m.p. and balance parliament asked for and was granted permission to read the contracts between the state and the two companies. she was led into a windowless room where she wasn't allowed to copy anything more. even bring a pen to take notes. to soak them out.

no matter what in public private partnerships are tough. that's is in my p.p.p. is all. ready they lean out and bellina niche could move us at michigan to give us our poppy harlow is calmness did new york then given these it first knowing that undoes had had alley it went on in there and she had skittish and got high in those sheets good taste angles when we as indecent to typify taken all kinds of beauties and she's going to just want guy like this could talk to one see how from that land i live in and ellis lies fear and gallon they're given a thousand. valid gas is i can cliche i can tell on janish slower navasky been kind for tough on tyson yon as a dismissal of prima shift.