what politicians do something to. put themselves on the lawn they get accepted or rejected. so when you want to be president or injury. or somehow want to preserve. it's a right to be present this is what the before last three in the morning can't be good that i'm interested always in the waters in my house. or this is the kaiser report even toil and they're begging for more money you know rates are going up and even toys you know that's why they're going to look at

bringing in a toy helicopter to try to do some helicopter money right stacy that's what you need you need you need to bring in all kinds of liquidity to the system other was things to do you know what i'm saying and so fortunately the fabulous people in toyland. while i worked on the well i was saying i had another headline that didn't relate to helicopters but that looks like a demented helicopter for a demented financial system around the world and i'll start with a headline that might say that we might require helicopters coming soon because of course you know janet yellen the former chad fed chair i was going to chad fed chair woman she recently said that you know that for the next financial crisis that everybody is warning about the next financial crisis coming soon and that the fed should start buying equities actually get it going to the markets and buy a i wanted to cut to the last line because to give you a reason to use that prop and this is from jesse feller he said there have never been so many bonds that are almost junk b.b.b.

be my baby and i know you know exactly here's the chart that's near junk this is the financial crisis these are the outstanding corporate debt so you see there's like almost three times as much outstanding corporate debt corporate bonds issued that's almost nine trillion dollars outstanding right now and most of it is this will be stuff right here it's all junk it's all just it's all going to be bailed out again we're going to the helicopter exactly among those who are going to second to go gosh turn to promote a little toys turn your back on again. earlier . well. that's ok sit down sit down sit down because we have a lot to talk about here and this is stuff that does not get covered over on m.s.n. b c or fox or any of the other news programs like c.n.n. here and this is quite remarkable to me because if you tune into the news here in the united states right now it's all like these crazy partisan politics like

seemingly minor gossip and considering that we're an empire and like lots of crazy stuff is happening and this is a headline that i want to keep track of you and i have been following of course for years the warning about this and now it's starting to happen and that is breaking european union said to set up a legal entity to preserve oil and other business with iran and bid to evade u.s. sanctions a remarkable story right here is the e.u. that has looked at the united states wielding its weapon of having the u.s. dollar and control over the global financial system because all trade mostly settles at some point even for a fraction of a second in the u.s. dollar and so the u.s. dollar. you know the solver and of the u.s. dollar gets to impose huge fines and sanctions and threaten all sorts of nations around the world and at first you know they came for the cubans and the european said nothing because they were not cuban and then they came for venezuela and then

they came for iran and then they came for russia and then they started to impose sanctions on friendlier and friendlier countries europe said enough the u.s. is trying to control the european banking system remember they imposed facta so every single european bank had a report of every single customer every single transaction especially one through the u.s. dollars and the u.s. is opposed their u.s. dollar base has germany all over the world now european nations nations are saying no we're not going to be a part of the pirating more because we need the box we need the money we're not we don't believe in your propaganda we don't think that your sanctions on iran have merit for any reason so we're just going to bypass them because we can because the world is. transforming itself with different payment channels and swift the use by banks is going to being replaced by new systems and europe is breaking part and britain is leaving the you in the e.u. is exert its friends its naming about this whole thing is that of course of puts huge pressure on germany as i've been saying now for

a few years that germany is not really going to be an ally of the us much longer because they will side with the e.u. china and russia and that's the new bloc of power against the us and whoever else they can cobble together but germany is the massive story of twenty nineteen well yeah they're the huge economies of the world or the us germany and china and those are the three superpowers of commerce and superpower of manuf that germany and china make everything the us consumes everything that gives them an outsized power on the world stage germany because of its history has mostly stayed quiet and they just keep on building and put their heads down and try to forget their past and hope everybody else does so they however are now in a bind because they run the e.u. and it's quite clear it's greece and they own the failure of greece has basically expose that lie that somehow it was a union of of twenty seven members and they were all equal and now it's germany that runs everything like everybody had suggested and used to be considered

a conspiracy theory but now it's obvious they are they are the main power they run the central bank they run they have the power so you know there are a number of things that they are starting to see that there is so therefore because germans are ultimately on the hook for any collapse of the italian banking system or the french banking system or the spanish banking system they want to make sure that these fines member the fine imposed on bank pair of friends of ten billion dollars like two days after france said that they would not abide by sanctions on russia. i was opposed for ten billion on bank parable for dealing with iran and so . hard all that. sort of stuff they if they saw that as well you know we don't want to suffer and then the north stream too you know that the u.s. wants germany to force them to take us liquefied national natural gas which would cost like two or three times more for them to consume than the russian gas forget the u.s. consumer by the way which you know certainly rachel maddow would never ever tell

her viewers that. you know she encourages them like we're going to frac we have all this natural gas we're going to ship it overseas we're going to be great but she doesn't tell the u.s. consumer that if if your natural gas producers are able to sell it for like eight dollars whereas like two dollars here that means your price that you're paying here has to go up to eight dollars to you know compete with the europeans who will buy it i want prices of the national energy have been protected for years yes artificially low yet we go to the world market then it'll probably triple you mention iran and this is the story about iran and you know there remains have been at the u.s. the u.n. general assembly i was going to say the u.s. general assembly which it really is at the end of the day but iranian officials to trump one lower oil prices keep quiet and stop tweeting so that was the airing opec representative hussein casm pour so he said that area and he says you know that he's the one that that trump is the one that keeps on tweeting stuff to push opec

into volatile situation that he should maybe stop tweeting i saw that trump is also tweeting at rouhani basically that they have to change and then you know but he seems like a nice guy a lovely guy he calls a lovely guy i think would get along so it's kind of at that stage where we were on the brink of war with north korea and got into a tweet war with kim jong un and kim jong un called them so we could be at that sort of stage of our geo political story right now with iran now while the mother of necessity invention could force. between the u.s. and around just for economic reasons because u.s. can't afford the empire anymore they've got to reach out and make friends where they have traditionally been shunned well i think that's a little bit of a you know in correct in terms of the fact that people you know empires never can afford to maintain the edge of empire because it's very expensive it's far away but all empires before ours had gold backed currency they actually had to genuinely pay

value to maintain that empire. we've got away with not having to pay any real money we have just the dollar and anybody takes it right but the problem is what has happened is that that has relied on everybody else believing in that us dollar having value so we forgot after forty years of having no u.s. dollar backed by gold we now have hubris that happens to every empire that's part of the reason why they fall that apart that we think like it's always been like this and that germany has no choice china has no choice iran has no choice venezuela has no choice you know certainly obviously cuba medals well i had no choice because they were small and not powerful but here you know the rest of the world once we once we got away with you know threatening china threatening venezuela and cuba and smaller nations like that then we only had the big guys left and they were like oh yeah looking at us like that like you're doing right now in

that very germanic way and they're like i don't think i'll think this anymore and then your empire gets too expensive right but i still believe that is forcing trump in this case you know to reach out and form alliances that he would maybe not consider because he's on the back because the us dollar is being shunned yes and as an empire we're going to look kind of like that airlifting out of that's you know that's right when we were still like at the very end of our backed by gold us dollar that's the equivalent to what we're seeing and trump is kind of the guy in the in the helicopter. helicopter down there just sort of here so so that's the point we're at in this sort of this this phase is where is where where airlifting where airlifting are goods out of the. t.v. with children or dogs or still helicopters you know those words great in rehearsal

while you're getting that to work i do have. other stories here because you know consumer confidence has been booming. so work. is a. way out this is you know certain things you have to doing that audience have can't just get you to do that and much let it go let it go let it go this am where you go there it's like a business related by just. ok so markets are hovering and will they crash like your helicopter adjusted so the dow jones may be at an all time high but the smart money flow in docs has been flashing a bear signal since the last correction in february the smart money is never really returned since february and this is the bloomberg is their smart money flow index and the markets are the blue line as you know we continue to hit all time new highs

the white line down on the bottom that's the smart money and it's never actually returned to the markets since february so this is all the millennial this is the people in the robin hood these are the young people and the retail investors pouring into the markets i continue to pour in to markets at these sort of inflated numbers but the smart money index which is how they count by the way just so you know what they consider smart money bloomberg is that it's the you know the money buys in the morning smart money buys in the afternoon at the close of the market so they wait until the end they sell overnight they sell to the money in the morning and then they they buy in the afternoon and sell it to them in the morning well you know we're both of the stock markets are designed to move money from the impatient to the patient that's very good but you know because the they the dull money is in the markets and they're driving the markets higher one more chart from bloomberg bloomberg consumer comfort hit sixty for the first time since january two thousand and one since one thousand nine hundred five it's only been this high from february

one thousand nine hundred eight. until january two thousand and one of course we all know what happened back then which was the great dot com crash was in progress when it crashed back then but consumer confidence at all time high demand can have a consumer economy without consumer confidence well we've got to take a break and when we come back a lot more coming your way don't go away. after the war a nazi doctor was still like to rich in the nineteen seventies cretonne had as the chair of its board a man convicted of mass murder and slavery. a german company developed. a drug that was promoted as completely safe even during pregnancy. it turned out to

have terrible side effects what has happened to my baby is anything paul you know she said is just cut short arms minix a little mind victims i have to this day received no compensation they never apologized for the suffering their not only want the money i want the revenge. unfortunately cranial government destroyed their country i don't know maybe they don't understand this but they destroyed the country they lost not only crimea but they lost their own people in two regions crania us and russia they really have started very deep roots and to cut these roads and to try just to show yourself that you are absolutely separate and different. from russians this is absolutely stupid the way this is the way to nowhere.

plug them back to the kaiser report i'm nice keyser time now to go to washington state and speak with david morgan of the morgan report david walk him back max it's good to be back thank you all right and we'll talk about precious metals but first let's talk about the bond market it got rising interest rates and you have got the yield curve not inverting people ascribe significance to the s. what's your feeling about the bond market david marr again it seems like what that ten year above three point three percent now it something's happening i think david what do you think i agree max with above three percent it's a breakout you're going to see probably increases in interest rates i'm probably not alone in that if you think so and the group probably get twenty five basis

points out of this if whimsy meaning this taking place as we speak and we probably will get it boosted up a little further and maybe then retraction and then maybe even higher obviously they can't go very high because of a crash economy but the bond the debt bomb is something i wrote about in the silver manifesto years ago and this debt problem isn't going away the inverter the yield curve will take place or it's heading that way one day does make a market but we are in a situation where the u.s. dollar is still the king currency and this goes along with my thoughts about how this whole system will unravel and it's contrary to a lot of belief systems all right well talk about this invented and very detailed car for a second so tell people what that means oh isaac why is it significant well if your long term interest rate is at three and a half percent and your short term interest rate is at three point six percent then

people will seek the yield and they will sell the long end of the curve and jump into the short end of the curve and escrowed inverted yield curve so that. really distorts the market whenever we've had that type of situation there has been a recession following it so we're heading that direction right now and the reason it happens is because the short term money is hot money needs to be borrowed in the marketplace and this is something that again this happened in the past so it is heading that way even if it doesn't invert totally i think a recession is absolutely going to take place sometime during two thousand and nineteen so what it means is a recession is ahead of us right now so far in the past. paul volcker era the federal reserve bank starting with alan greenspan recessions have been outlawed the central banks have printed all the money they need to keep banks afloat even though it destroys the economy destroy social cohesion they think will see quantitative easing for a q.b.

for if the bond market sells off a little bit more if the stock market sells off even two or three percent while the fed just step in and start printing money as they have now for twenty five years i do think you'll see a q e four but not at those premiers that you outline a think you'll see a q e four when you have let's say a ten or maybe even twenty percent correction in the stock market and perhaps a very big inverted yield curve and that's both plus those i don't think they'll step in. you know two percent or three percent correction in the stock market although they could i doubt that's where they would make that move i think they would wait until things get there usually actually follow what's happening in the marketplace they really don't lead although they give the atmosphere of the projection that they do they really are followers not leaders for most foods are yeah john allen just reiterated the fact that they don't manage they don't lead they react to the catastrophes they create by creating a market pass phrase that what about corporate bonds there's nearly twice as much corporate debt today as i was in the tooth thousand and seven two thousand and

eight period much of it selling just barely above john so this seems problematic david thank you absolutely it's reminiscent of the thirty's i mean when the great depression took place there were very few corporates that held any weight but there were a few corporations to the opportunity to borrow money cheap i mean money is a commodity like potatoes and if you can get it cheap you're going to get it cheap in a lot of these corporations have some taken the money and done what they bought their own stock back to get their stock prices higher because there are those as are predicated on how well they do to start market i mean it's such a ponzi scheme fiasco circus. these days as far as financial markets i mean almost everything is run on algorithms these quotes are making up these math only real as and computers are trading against each other and there's really no correlation between the physical economy and stock prices of the more sure there's a few exceptions here and there but generally speaking there is

a disconnect between the number that you see on the mainstream financial channels and what's really going on so i think a lot of those corporates if we go into the next recession and it turns out to be a big one are going to go to the by and by they are junk and the yields will shows because some of these corporations will be unable to service the debt on those farms and also make it a chunk economics and phantom stock prices and algorithmic nonsense there's and i think statistic that much of the corporate that was spent on share buybacks which half of the first time ever passed the amount spent by corporations i capital expense as that of spending money on building out their business says they're spending now more money on just buying back their own stock which for historians in the markets if they recall used to be illegal for very obvious reasons that what does this tell us about who corporate america thinks what they think about the future of the u.s. economy david well max i don't like to always refer back to the foresman film but

we're both in that and really it's the end of the age empire mean basically at the end of the game where things are collapsing that it's not an overnight event the the elites the top tiers of the financial system do every trick in the book to keep their greed satisfied and they'd they don't have avarice beyond belief so they continue to play these financial games that a lot of the let's say less sophisticated investors are aware of the general public at large has no idea what's going on and they're just stuffing their own mattresses it's not helping the economy in any way shape or form but this is typical throughout monetary history that you see this kind of behavior right now let's move on david margan to gold and silver so. what's going on with the process metals is a good time thing that they've been so boring for so long as it's the calm before the star maurice is the permanently broken shattered doll never coming back market david margan. i do not think it's. a market to give up on it's certainly been

a longer correction than i thought it would be and many others well we have now is this shift that's good aided by the big war machine in the us david i think it will think it's happening max as you well know i watch not a lot of your stuff not all but the asian if the structures bank yes i would be a believe you know i mean that plus if circumvented the swiss system as you know so there's all kinds of telltale signs that are just fiction or reality that have been substantial changes in the bricks that have been used to circumvent the dollar and this will continue if you look at the silk road what's going to take place between europe and china this is highway metaphorically that will take place and will really kind of push the u.s. baby out of its superior position so there are massive changes going on and then if you look at what's you know really out of the conspiracy left field but i'll take it on is what's going on with the fed reserve alan large meaning what would happen

if the fed was audited what would happen if the treasury took over the printing of the united states no instead of the federal reserve i mean i'm assuming that's going to happen but if you go deep down the rabbit hole you can find words and music to that effect so there's a lot going on here i don't think you're going to see the same financial system you have now five years from now of course back to you kind of the leader there in the crypto side because this is a competing currency and i'm all for competing currencies on the crypto thing i've done i've been trying to late to the party and i think number one the level that took place with bitcoin in the theory i'm. trying to set the base and i see the next leg up being precious metals back kryptos but you're starting to see a fair amount of those big concern for me still the security there still in my view a strong one so security issues surrounding the platforms in some cases right well we'll have about twenty seconds left les make

a quick comment on that the issue with metals back trick of currency of course is that you still have to verify via third party the veracity of the metal its aims to me to be a bit of an oxymoron in that regard but i understand there is a market for it anyway david morgan thanks so much for being on the cause report maxine mckew alright and that's going to do it for this edition of the kaiser report with me max kaiser and stacey everett want to thank our guest david morgan of the morgan report it's a must read catches on twitter account the report until next time.

mother who used to leak school was lonely garden. slug. and when you. look at the distant cousin wasn't it a book called new to this a but. it's going strong still it's about seeing i mean yeah there's. just

a little. less . i. guess. it's a little. the headlines on arch international in a fiery address it to the u.n. general assembly russia's foreign minister rails against

a deep political blackmail economic pressure and group force he says western governments are using to maintain global dominance. after a dramatic emotionally charged committee hearing that donald trump orders an f.b.i. investigation into the claims that sexual assault leveled at his supreme court nominee brought.