i've 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 nation nations are saying no we're not going to be a part of this empire anymore 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't because the world is really 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 u.s. much longer because they will side with the e.u. china and russia and that's the new block of power against the. u.s.

and whoever else they can cobble together but germany is the massive story of twenty nineteen well yeah the huge economies of the world are 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've failed failure greece has basically expose that lie that somehow it was a union of of twenty seven members and they were all equal and stuff 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 that 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 paragon 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 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 and 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 mentioned 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 a 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 window tired 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 a 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 the 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 don't 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 foot because the u.s. 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 u.s. 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 there we're trying to do 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. those who work there is

a. way out this says you know certain things you have to doing that audience. can't just. let it go let it go let it go this am where you go there it's really 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 dumb 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 eighty. 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 i don't all time high so can a consumer economy without consumer confidence well we've got to think a break and when we come back a lot more coming your way don't go away. don't accept the story of the stars right to live it's. like. me it. was somebody who doesn't know it's

a mask you never know what's happening and what they're shooting whether it's here . and mistrust out of the. love of. your. posts which would mean you must be just because of that interview but i meant because if you omit it that's and in the muslim to all these put it when the. so what we've got to do is identify the threats that we have it's crazy. let it be an arms race. clearing dramatic development the only really exists i don't see how it will be successful. to sit down and talk.

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 hello david welcome back max it's great to be back thank you all right we usually 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 you're feeling about the bond market david margan 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 but few 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 inverted 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 in

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 crossbows 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 who are most suits are yet john allen just reiterated the fact that they don't manage they don't lead they react to the catastrophes they create by creating markets asked for is 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 i think 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 clever ation see 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 clients are making up these math only as a new 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 junky economics and phantom stock prices an algorithmic nonsense there is and i think statistic that much of the corporate debt 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 four horsemen 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 and 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 your 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 press medals isn't a good time thing that they have been so boring for so long as it's the calm before the star maurice the permanently broke and shattered doll never coming back margaret 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 but what we have now

is this shift that's going to take place and i think will take place probably next year meaning that you'll see stocks start to weaken and you'll see precious metals start to strengthen but before that all happens if you go back to a lot of the work that i did based on john exter and the inverted pyramid exter pyramid it's referred to sure look it up and this is where the dollar gets stronger and stronger and stronger and this is you know puts pressure on the gold price but there'll be a run to what people trust and most people are no concept of monetary history or what gold means in financial or monetary system all they know is that a dollar can be trusted this is why you know when you're in these conditions of the emerging markets with the lira brazil argentina then as well and they're all using u.s. dollars actual physical bills as the safe haven so the run of the dollars of the night expect to happen which means we should gold prices in the final run will be out of the dollar and into goal and that's the last phase that will take place so

when is that going to happen is really hard to pinpoint but i think that's the process we're going to cease a lot of people think you know dollar collapse yes i think the dollar will but i think before it does that they'll be a lot more strength in the dollar and this is this going back to the yield curve in the debt. interview part that we talked about you'll see interest rates going higher which means more money around the world is going to see yield and they're going to go on the u.s. markets because there's yield even though everyone knows that that debt cannot be paid back they're going for the short term not for the long term it's somebody else's problem when the. system fills in the bond market crashes here's a market that has trillions of dollars of negative yielding corporate government bonds or governments are actually selling bonds guaranteed to lose your money and yet there's a huge market for it and of course gold price than any other currency but the u.s. dollar is at or near all time highs are make a new highs in the case of argentina venezuela all kinds of these economies that

are a freefall so only against the u.s. dollar has it failed to make a new all time high but dynamics can change pretty quickly and speaking of dynamics russia and china of course still accumulate massive quantities of gold and so they why they doing that david morgan well they know what's coming and so they have to do because u.s. dollar in the said you can now is gold i mean this stew this is terms with those years ago as a good target saying but do you see what's going to know whether or not they'll be a try to go directly with the chinese you want a room b. remains to be determined i somewhat doubt it but it could take place i think if it were to take place is going to be imminent i would say is probably at least a decade away but those are my thoughts currently sub change. you know you mentioned the empire about the u.s. dollar and of course the advantages one has when one has the global empire but countries like china russia and iran are you know figuring out ways to escape the

empires grip you know european countries are now figuring out ways to continue to do business with iran outside of the sanctions that the u.s. are imposing has the emperor been exposed as having no clothes other words the dollar as paul krugman of the new york times admitted is backed by nothing except men with guns so if that threat is removed and people don't take those men with guns seriously anymore like they shouldn't it is we're going to are we going to see this action over in europe ignoring the iranian sanctions that figure out ways to do business in iraq. is that going to open up a pathway toward a more egalitarian global economy less dominated by the big war machine in the us david i think it will think it's happening next you will know i watch not a lot of your stuff not all but the asian if the structures bank 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 brics that have been used to circumvent the dollar and this will continue if you look at the silk road was 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 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 a crypto thing i've know i've been kind of 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 is security there still in my view strong on some security issues surrounding the platforms in some cases right well we'll have a twice i can make a quick comment on that. issue with medals backlog of currency of course is they still have to verify via a third party the veracity of the medal it's 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 cars 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 as a report until next time by all. and that to scott like he. had to get that out. of his image and that to the money at the when the money the two. did it. didn't come i think. that is out there in his home up to

a mile and i think i'm going to once i'm not doing a lot about how to hand brawling so aren't i meant. to been out of them out so out i'm out of a pool of. doubt about them and i could see have a say yes by the. good that they did they speed them things up at the top and side up and after i did that i had a bad day but even though that's an olympian film and the look young siad. young. man. at least

he is and. you know world a big part of the model 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 back and shouting past each other it's time for critical thinking it's time to fight for the middle for the troops the time is now for watching closely watching the hawks. cooked additional note of what was announced at the killings are some of these it's a fist of blood you're looking it's not the. least you want to. see him do you see him if you don't know show person. look with a showing at the brentwood ship is going to win the chit. he think it will shoot

the movie if this keeps the live. well which of shipping. you up and most of the book is the work of the person you will still lose you know i don't know what the will of the earth. was the latest news in the put this. stuff no worries i'm all right so yeah that's right this was the. lyricists three syringe story. it doesn't. it's hard to imagine decades after the war. was still active and rich in the nineteen seventies crittle had as the chair of its board a man convicted of mass murder and slavery at ashwood a german company developed. a drug that was promoted as completely safe even during

pregnancy and it turned out to have terrible side effects what has happened to my baby anything. you know she said is just cut short arms minix a little mind victims i have to this day received no compensation and never apologized for the suffering that not only want the money i want the revenge.

but. it's it's called right now moscow headlining this at the u.n. general assembly russia's for. mr wright held against the political blackmail economic pressure brute force he says western governments used to maintain global. police use force against pro independence demonstrators in catalonia just two days

before the first anniversary of the region's independence referendum.