the crisis period is that in response to that crisis and this was when people were gaming the system of federal deposit insurance to steal money essentially the response by law makers was to make that particular type of crime that was illegal and over fifteen hundred people went to jail bankers went to jail as a result of the inquiry that after the savings and loan crisis they changed the laws so that that type of lawbreaking was made legal and it set the stage for the two thousand and eight subprime crisis sub prime crisis of two thousand and eight was a repeat of the savings and loan crisis people ask how come nobody went to jail because after the savings and loan crisis from the one nine hundred eighty nine period the laws were changed to make that particular type of fraud legal essentially yes the lincoln savings and loans crisis was one of seven hundred forty seven s n l's that collapsed it cost that in total it cost one hundred sixty point one billion dollars

of that one hundred twenty four point six billion was paid by the u.s. taxpayer and then they economy did go into recession in one thousand nine hundred ninety one but here's another phrase another quote that could be straight from what donald trump said when he was just a candidate trump keating was hit with a one point one billion dollar fraud and racketeering action filed against him by the regulators in talking to reporters in april keating said quote one question among many raised in recent weeks had to do with whether my financial support in any way influenced several political figures to take up my cause i want to say in the most forceful way i can i certainly hope so. right another legacy of the s.t.l. crisis was the beginning of the american oligarch class because remember the hundreds of billions of dollars worth of busted banks those assets were put into the resolution trust corporation and then held by the government over a period. time and sold off sold off for pennies on the dollar to the likes of

people like ron perlman who got that all tax free and developed into a billionaire and others who fed at the trough of the s n l fraud became the really the basis for the american oligarch class that's still was us today and plundering the economy john mccain was cleared by a senate investigation of course many in the media then said well can you really can you have senators investigate themselves that was all senators being tried most of them were three of them dropped out and no longer were senators after they didn't run in the next election but john mccain so according to the article after nine hundred ninety nine the only member of the keating five remaining in the u.s. senate was john mccain who had an easier time gaining reelection in one thousand nine hundred two then he anticipated he survived the political scandal in part by becoming friendly with the political press so he became the bag man for wall street

and he saw the two thousand and eight subprime crisis most famously you saw the enron collapse and john mccain and his republican cohorts like the bush family and others were very cozy with ken lay who financed the bush campaigns of the bush presidency and when they got caught committing massive fraud on the same scale as a savings and loan crisis the machinery was already in place thanks to john mccain who's a bag man for wall street for decades yeah to bail those guys out and make them whole at the expense of the democracy slash economy of the united states which is disintegrating but again i want to repeat that sentence because i really think it's quite shocking because it was quite shocking after his death the uniform her the like. assessment by the u.s. corporate media that he was this great hero and only a great hero and can't say anything negative about it he survived the political scandal in part by becoming friendly with. political press so he

continued that all the way for the next twenty thirty years where he would have the press come to his house and he was a good guy he makes great hotdogs he has a great barbecue how can you possibly think anything negative about him we see the same thing on the financial corporate media here they're good friends with jamie diamond they're good friends with lloyd blankfein how can you be hard on these guys because they're good guys they invite you out to their home in the hamptons they are so charming they're great hosts how can you possibly really go too hard on them like john mccain you should have done that and you could see that in the interviews that charles that chris hayes gives for eric holder versus our interview with eric holder eric holder was just recently interviewed on chris hayes this show and it was a softball question after softball question he tried to do wanted to little hard questions but quickly backed off and eric holder didn't give him a great answer oh i need to know about john mccain is that warren beatty was appalled or ok so here's a guy who is friendly with the press who is

a media bore in other words it starts a w. john mccain who at his own funeral is playing hollywood games by having warren beatty as a pall bearer i mean i would have loved to have been the call to warren from his agent like warren we got a job laurie and apparently there they were very very old friends are good friends but sure the other interesting thing was that john mccain's lawyer at the time was john dowd who then became trump's lawyer there all is actually there were a few people that were involved back then the s. and l. crisis getting all these senators and everybody absolved the powerful people who did not go to prison at that time they had these lawyers that are still in power now but also the other legacy of john mccain is he was he was a war hawk despite what the media might have said they call it heroism and a great patriot and many people in the world might consider a war hawk ism so i want to see. like it does work obviously america is very

powerful they have a huge army our dollar since one nine hundred seventy three by the way when the you know john mccain returned to america from a prisoner of war camp which was a horrific experience and he was horribly tortured but he returned in march of one nine hundred seventy three right about the time that. basically we had the petrodollar beginning of the petrodollar so we after forty years we have a lot of hubris and a lot of war hawks and neo cons demand that we use that as a weapon so the dollar has been weaponized and the likes of john mccain and all the neo cons around him that we lead to this headline here from c n b c that anti dollar awakening could be ruder and sooner than most economists predict the united states is currently waging economic warfare against one tenth of the world's countries with cumulative population of nearly two billion people

a combined gross domestic product of more than fifteen trillion dollars these include russia iran venezuela cuba zimbabwe man maher the democratic republic of congo north korea and others on which washington has imposed sanctions over the years but also countries like china pakistan and turkey which are not under full sanctions but rather targets of other punitive economic measures. right the dollar is an instrument of war it's a been weaponized and weaponized and the empire that is the us is expanded and controlled through the world's dependence on dollars to survive and that's to post world war two order that's to the legacy of the bretton woods agreement and this is what countries are now fighting to to get out of this constraint out of this choke hold of the dollar but it's a classic set up a first they came for the communist and i didn't say anything because blah blah blah so here they first they came for cuba and i didn't say anything because i

wasn't a communist are our country wasn't communist then they came for venezuela and then they came for iran and then they're starting to use that weapon that power that hubris the emperor the empire gets less and less happy that you might betray them in any way so this is what we're at the point now where you know the u.s. has decided again to impose sanctions on iran and europe you better abide or we're going to sanction you it's like you know those big icebergs break away from the arctic or the antarctic and they float away it's like the rest the world is breaking away from the u.s. dollar it's been frozen under the yoke of u.s. dollar germany and now it's breaking up we're going into and i have coined this phrase neo mercantilist you know i was the first to call this and he would just like i was the first to measure because in two thousand and eleven i'm the first to mention the american to listen in twenty seventeen and twenty eighteen we're going back to nineteenth century global economies again so i want to say that this is the

sort of neo con hubris stick sort of what is called patriotism by some after john mccain stephan all of the bits where he's for him but some could say it's called imperialism from the outside they might see it as very aggressive a neo con like and and our we here in kaiser report have warned of this but. this is c.n.n. b.b.c. saying it and we've never even put that into context of just how much of the world economy is under sanctions by the u.s. because from a u.s. perspective each one of the economic entities is targeted for good reason be it human rights violations terrorism crime nuclear trade corruption or in the case of china unfair trade practices and intellectual property theft but in recent months it seems that america's unwavering commitment to fight all of the world's scorches has brought all of those governments and the wealthy individuals who support them to a critical mass joining forces to create a parallel financial system which would be out of reach of america's long arm

should they succeed the impact on america's global posture would be transformational absolutely and this is what they're on the cusp of a post u.s. dollar a germany world and this is in transition right now and this is makes these very exciting days that's what i'm saying is like john mccain yes he was a patriot is a great patriot in fight fight yeah we're actually sizing our power but you can only exercise your power responsibly otherwise it comes back to john mccain lit the fuse yeah on the death of the dollar yes especially and now his passing is coincidental with the dollars passing especially in the same twenty four month period john mccain and the u.s. dollar will both die in there because he could only exercise that power once or twice our guest jim records has said this as soon as a sanctions people and cut them off swift that the u.s. had the ultimate authority to do that and as soon as they pull the trigger they set

in motion an alternative to it because the soon as you do that you have to have an alternative boom time to take a break don't go away and be right back. move to move. would not be enough they would see to it. it was alive alls from soon as. i came back the community. people we obvious found in on the road look at me oh look at us all bible dogs hand. to live for a little while i was up all. the

way to. see. she's going to look to see morning doubting that any of us all that. it should be books don't. know we all knew this. was the fact but doesn't last i am not touching me in my life. i see a man have to die. i've been saying the numbers mean something they matter to us is over one trillion dollars in debt more than ten like colored prime stamping each day. eighty five percent of global wealth you longs to be ultra rich eight point six percent market saw a thirty percent rise last year some with four hundred to five hundred three per circuit first second and bitcoin rose to twenty thousand dollars. china's building two

point one billion dollars a i industrial park but don't let the numbers overwhelm. the only numbers you need to remember is one one business shows you can afford to miss the one in only. four men are sitting in a car when the phipps gets. in the hands. of four different versions of what happened one of them is on the death row there's no way he could have done it there's no possible way because the us did not shoot around a corner. in a world of big partisan movie lot and conspiracy it's time to wake up to dig deeper to hit the stories that mainstream media refuses to tell more than ever

we need to be smarter we need to stop slamming the door on the bath and shouting past each other it's time for critical thinking it's time to fight for the middle for the truth the time is now for watching closely watching the hawks. welcome back to the kaiser report imax guys are time now to turn to allison macleod of gold money dot com full disclosure maks us a c.e.o. and shares a gold mining alister welcome back to the kaiser report hello max all right so let's talk about trump the markets are responding incredibly well moving up a new all time highs is it a melt up is there a what's going on here we're going to see a meltdown what's your what is what are your thoughts alister. looks like a bit of

a bell start really only what's so interesting in this max is that everybody's been so bearish about everything ever since the lehman crisis this is still trying to talk the market down and you the market is up and open up this to me is as irrational as the run in the u.s. stock market between one hundred twenty eight nine hundred twenty nine but we're still going up in my view all right let's talk a little bit about the difference of pain stocks and bonds here for a second because interest rates are going up and as a result bonds are going down and however in that kind of environment you usually see stocks also go down is it how much is driven by the stock buybacks out there i mean if got like the swiss national bank buying apple stock you've got apple buying its own stock have got all these ways of corporations buying back their own stock adjusted for all the stock buyback stocks are trading at thirty thirty five times earnings which would be all time highs is that

a big factor well i think we almost ignore that i mean the fact is there is so much money to run i mean so much money was printed in the wake of the lehman crisis not only in america but also also in europe as you go to school is cash running around i mean you've got so much money on deposit it's going to try and find a home to get some sort of return and i could almost if you go to yield of say point. one percent on. a ten year job and bought. you know u.s. treasuries look attractive could go to that little bit of a digression air so i just saw folks now in germany of course they have negative interest rates and now the big german banks are starting to charge customers. for holding their cash as a way to offset what they're being charged by the central banks are negative interest rates are now hitting deposit accounts i would think this would be an excellent environment for gold alison mccleod else talk about gold for us like

a mighty thousand contracts are short gold futures shorts over ninety thousand contracts put this into context for us and what does it mean well if you're bullish about the dollar and i would argue that everybody nearly everybody has been buying the dollar recently and you sell everything including your own grandmother in order to buy it and that's basically what they've been doing they've been selling cars they've been selling current since they've been selling gold they've been selling so i literally every thing they can possibly find to sell they sell in order to buy dollars and that is why. you go prices going down and as you say the net short position amongst the haitian funds is not precedented ninety thousand contracts we have never seen anything like this before so you know will it correct course it will because a soon as the dollar starts going up and go stops going done you then get a better squeeze and already we have seen dance in the price go from around about

sixty currently is trading about twelve ten so you know we're getting this technical squeeze and i think that that squeeze can only get so far more vicious against us right you know you've got same situation over and total global output of silver or something like seven hundred fifty million ounces and yet the short position with naked short these are on collateralized short. positions just printed by wall street to make free money is in excess of a billion yes got actually more short contracts than the annual production of some are very similar in gold you've got more short in the market then there are actually being ounces produced by the world on an annual basis that's not economic south or what do you call that i mean i mean why worry be fraud by it is it just pure fraud or is there a any economic or financial justification at all there's no economic no financial

justification is just crazy i mean first if you would i could use people are so bullish about the dollar and that's that's what's driving it and sooner or later that's going to reverse because there is actually no real reason to be bullish about the dollar zero zero than perhaps is a better year to bait a bill on u.s. treasuries than there are against the equivalent sokol riskless investments in other currencies such as japanese bought government bonds and german government bonds but that's about anything i mean we've got a trade deficit which is running at around about seven or eight hundred billion dollars a year. other currencies like the yen and the major costs like the end of the euro trade surpluses so the run of the play actually is going against the dollar and i suspect a little later on once these trade tariffs start to affect prices in america the fed's going to have a huge great problem because can it really race race to do with

a rising race of price inflation driven in part by tariffs and i think they've got a real problem coming up on this and it's likely to be destabilizing i think rather than how i'm saying in terms of the dollar. talk about trade as second by just sticking on the us dollar idea for a moment with a snake and shorts and shorting in the marketplace and our right what i would. senator to be a fraud you have a situation where investors come to a fork in the road and they can chose to go down the path of buying dollars or they can choose to buy gold but there at the gate of the gold road is a naked short gun pointed to their skull right a blow their brains out this is not symmetric market making this is not price discovery this is ridiculous they're there they're not buying dollars because they're crazy they're buying dollars because the path to gold is being guarded by

the equivalent of a man with a gun as paul krugman likes to say when describing american style capitalism he says it's basically just men with guns thank you paul krugman ellis close to over to the curve so we hear about a flattening yield curve and we'll talk about trade a second but i want to talk about the old curve what does this indicate alister should anyone be worried. well under normal circumstances a flat you normally would indicate there's a recession in the offing or a very at least very strong chance of a recession in the offing but we've never seen this situation before i mean the idea that it flat you please into recession basically comes about because nobody is borrowing money with long maturities simply because you know let's say that the economy is no longer following through whatever whatever. but this time it's not quite like the u.s.

economy is in just concentration that is actually going like a train as you know powerless reisa on this the problem really is there's just so much money around the idea that you can compare a situation where there is a limited quantity of capital in the system which is a situation where there is over one hundred percent of deposit money in the system sooner. compared with the private sector g.d.p. i mean a small dollars in g.d.p. in the private sector this is a this is not unprecedented situation and i do think that you can really look. into cases such as the u.k. as has been reliable as being a reliable indication of what's going on but what we do know in the american economy is that skill shortages are beginning to impact labor markets. anybody who's it global in america basically is you know can get a joke so the economy is i think in

a pretty advanced stage credit cycle i don't think we can really i mean you keep talking about all this money sloshing around the system and the fact that we have failure of price discovery at the same time you can't really call that money money historically is a store of value or a means of exchange but we're talking about family by the central bank that's used for political favoritism and for political outcomes that's not money that those are coupons that are printed by a centralized autocracy to further their power structure but it's not quote money as we understand that term and the everything you're saying it kind of buttresses that point the flattening ailed curve is an economic indicator that would help you determine oh are bonds expensive or are they is a market but again we're not talking about money are we were talking at about a private coupon issued by a club talk or say for the benefit of

a plutocracy at that that you're man of a democracy and they were all and result is a lot of more polysyllabic words strung together and fricken awesome sentence i have to repeat that i replied all right so see n.b.c. is worrying that the anti dollar awakening could be ruder and sooner than most economists predict in other words the world is not a food old by this funny coupon money that's not really money. and the world is a three jack thing the dollar. do you think that the increasing deployment of sanctions embargoes and cutting off nations from swift were result in total rejection of the dollar and if i had a lot or alister well a time i think yes because really you don't weaponize that currency and deploys in that fashion like if you do that basically you just read mistrust and we're seeing this with. the russians who. got rid of their fuel their treasury

salute not quite a while but they've reduced it to a pretty low level i guess will it be buying instead of being buying goat i think that they've actually got the right idea and i says i suspect is the dollar gets into trouble the russian if you like the raising folks for the russian economy is likely to improve quite significantly i think they know what they're doing it doesn't make sense i mean precisely as you say max the pay the money the surat is just that is just paper is just currency. it does not retain it is value and death toll in the long run it's of no use i mean people just don't seem to understand that since the nixon crisis would show all the way to the end if they ended the bretton woods arrangement the dollar against goat is lost ninety seven and a half percent of this actually now that means this is literally any two now percent

of the one hundred seventy one dollars left measured in goat and i would say the most at the goats that expensive so we're not exactly taking a you know the worst moment to value the dollar right alice are going to at the holiday our first second segment to pick their brain some more if that's ok that's my pleasure and that's going to do it for this edition of the kaiser par with me max kaiser and stacey however i'd like to thank our extra special guest for all blighting alice. in a cloud of gold money if you want to catch us on twitter it's kaiser report until next time. you know. that i'm going to learn how to know that i'm not out of luck though they're not

that i'm not out of the i'm out of the money that they're letting him and. this was a good time to. try to move. them out loud to get my little money not why not. why x. chanting in the hall people we believe in the beer. bottle of my kids i don't want the bumper so johnny follow the moment a little more than having a little accuser is a little odd i'm a little like you might be old enough to go out to the people i don't want to put out in the most party when i don't know them of the brother to. join me every thursday on the elec simon short and i'll be speaking to guests of

the world of politics sports business i'm show business i'll see them. pranking gave americans a lot of new job opportunities i needed to come up here to make some money i could make twenty five thousand dollars as a teacher or i could make fifty thousand dollars a year truck so i chose to drive trucks people rush to a small town in north dakota was an unemployment rate of zero percent like the gold rush is very very similar to a gold rush but this beautiful story ended with pollution and devastation a lot of people have left here i don't know too many people here anymore slowdowns for much they lost jobs that laid off the american dream is changing that's not what it used to be. and it's a tough reality to. chose

seemed wrong all right all told just don't call. me. yet to stamp out this thing because etiquette and indeed from an equals betrayal. when so many find themselves worlds apart we choose to look for common ground. oh when we die it's our. future. to marry someone else and there is. through.

the power of dialogue washington declassifies hours of conversation between former u.s. and russian president bill clinton and boris yeltsin. a lucky escape for all on board a passenger jet which overshot the runway in court fire in southern russia leaving eighteen people injured also this hour. fifty. years of tear gas canisters israel uses live ammunition and tear gas as palestinians continue to protest israeli occupation of the gaza border. and pre-election polls in sweden show a growing split over migrant numbers as euro skeptic and right wing parties rattle the ruling social democrat.