dollars more than that five hundred billion dollars is about what we pay for say medicare so it's the equivalent of taking care of the health of all the elderly people in america right there just interest not just interest on the dead so when the interest on it gets to a point where your money printing ponzi scheme that is a federal reserve bank fails you then enter a currency collapse you enter a hyper inflationary venezuelan type currency collapse and of course the american ego will tell you that that's impossible here in the land of the free home of the brave you know empires come and go ok let's look at one thing i want to point out that we went off the gold standard in one thousand nine hundred eighty one so in a way i don't blame anybody who runs america for just doing this because why not people are sending you their real goods and services for free essentially so why not rack up these huge debts plus we have to rack up huge debts although wise you can't maintain the u.s.

dollar is the world's reserve currency so if the rest of the globe based on us sending all our manufacturing sending our wealth overseas in order for them to grow the economy globally to grow trade globally to grow the only way that can happen is if we send more and more dollars over there and the only way we could do that is to consume more and more of the stuff and send them these dollars in order to maintain that exorbitant privilege saw us basically end up going off the u.s. gold standard going bankrupt the world kept the sharod the charade going and here we are at this point that we've. all this fake debt based on fake currency so why not yes you know it's a question of the just all this of money you have been going to charade references that i've. you know we should just do this entire show you can charades and from one point and see how far we get into. well there are so many words because i lived

in the u.k. for so long there are so many words i get to and i get into this like kind of conundrum like what do i say the british pronunciation of sharod or do i say charade like an american would say so i get to that point i kind of lose track of what i'm saying because i've got to say either the british way or the american midland to kind of you know accent the medics and with the pope. verbiage now the only thing that would have been better if you're racking up all this debt did that's never going to get paid back but it's based on a fake system anyway it's all feel right so why not build better infrastructure why not build high speed rail across the country from chicago to norland from you know miami to detroit from new york to los angeles when i do that and get the you know overseas parvenus because you know we know from history the car manufacturing lobby doesn't want to have high speed rails or trains to interfere with their car

a lobbyist. by the way the way you describe there are foreign governments needing to cumulate dollars exciter that's of course the trip and dilemma which folks can look that up on google and find out all about this interesting chapter in economics the trip from the lama so let's move on to the next headline is kind of related to the first one said that the u.s. paid five hundred twenty three billion dollars in just interest on all their debt that they've accumulated is something like twenty one trillion dollars since the founding of this nation and it gets faster and faster every year well here's the u.s. budget deficit and that gets added to the debt from previous so this will you know this is the national debt is accumulated over the past two hundred years the deficit is every year how much you're adding to that debt here is the u.s. budget deficit eight hundred ninety eight billion dollars topping forecasts us budget deficit widened to eight hundred ninety billion dollars in the eleven months through odd. yes exceeding the congressional budget office forecasts for the first

full fiscal year under the trump presidency the budget deficit rose by one third in october to august period from six hundred seventy four billion in the same timeframe a year earlier the treasury department said spending rose by seven percent to three point eight trillion outpacing revenue gains of just one percent to two point nine nine trillion revenue from corporations fell to one hundred sixty three billion down by seventy one billion from a year ago i want to point out that's close to how much jeff bezos is worth so that's all that is given by corporations to the u.s. government is just one hundred sixty three billion dollars annually i won't get into how much we the citizens have to pay but it's a lot more than that. well it's apartheid it's american style apartheid this is a remake to that show love american style and they should make it apartheid american style and so families are stuck paying all the taxes and having to borrow

it twenty percent versus the people running the ship are worth billions and pay zero for the money they're borrowing that's interest rate apartheid as a part of american stuff we mentioned in the previous episode that jared pusher pays zero percent in tax and because he buys commercial property which gets to he gets to write off all the taxes gains as personal income i'm going to turn to another headline to show you the mentality of how those wealthy stay while thing get wealthier versus the rest of the population because this is a remarkable story with some remarkable basically quotes here from the people pushing this program thousands i'm not for a zero downpayment subprime mortgages magdalene altered or lost her home to foreclosure during the subprime mortgage crisis but this week she was first in line at a four day event in miami where borrowers with poor credit were offered no downpayment low interest rate loans. the event is one of several being held in cities across

america this year run by the nonprofit boston based brokerage neighborhood assistance corporation of america or naca bank of america is back in the program with ten billion dollars they're offering fifteen to thirty year fixed rate loans which at four and a half percent which is below market rates that a subprime borrower normally be able to get but the difference in this program is that investors can't be they can't be investors they have to live in the home so in terms of the mentality how the risk get richer and the poor stay poor get poorer here's a quote from the guy who's putting this on like i said his name is marx mr marks from. people have skin in the game in a real way the people that walk away are higher income people who look to home ownership as an investment just like buying stocks and bonds working people look at their investment in home ownership for their family for their neighborhood for themselves so he's saying don't worry people aren't going to walk away from these

mortgages like they did in the last financial crisis because the last financial crisis was caused by investors who don't who look at their home as a way to earn money and speculate and get rich or these people these poor people that were given these loans to are just looking to build you know they're not looking to get wealthy from it there's just looking for a community and things like that that's how they end up getting poor and people speculating and rigging the system and playing this system get wealthier old wine new bottles you know is propaganda of course the this is the it's different this time i mean this is the famous old saw on wall street this time it's different the banks are engaged in fraud in lending practices as they were in two thousand and eight as they have been for thirty years as they get caught and as banks pay massive fines whether it's wells fargo j.p. morgan or any of these other credit facilities or. the laws or chain. to make it

no longer illegal to make fraudulent loans this of course will create a huge credit crisis once again and the banks will get bailed out and the people who are engaging in the speculation with these fraudulent loans that they're unfortunately having to endure will get wiped out but the thing about it is we know from history that people continue to make babies and as long as babies are born the banks of customers to rip off well again like i don't blame the u.s. for going into huge amount of debt because they have to in order to maintain their exorbitant privilege of having u.s. dollars a world reserve currency like and they're getting stuff for free so why work hard and try to actually pay real money for the stuff people are willing to give you for free here these people are will are able to line up and get a four and a half percent thirty year mortgage unlike the subprime crisis when they had those adjustable rate mortgages that suddenly went from having a five hundred dollars a month mortgage payment to two thousand so they're not going to get that here

they're getting free money and they get a house so the worst that could happen is they get to walk away in two years or three years when the property market crashes there's no reason why they shouldn't do this it's absolutely make sense not to itself this is basically i think they're providing some greenwashing for bank of america because it's under a neighborhood assistance program and they themselves get three thousand dollars per mortgage that they filter through this system the other thing is look at this main stream media this is what they say is different this time than during the subprime crisis remarkable another big difference today is the housing market itself home prices have been rising strongly and there is a critical shortage of entry level homes for sale for barbara finds themselves in financial straits it is far easier today to sell the home quickly altered or remember the woman i said mentioned at the top who is applying for one of these loans is confident she can make the loan. monthly payments this time around

a small price she says for something far more valuable i think a home ten fifteen years from now that's an investment she said home ownership is freedom. and willing to go on record and predict these loans from bank of america with then twenty four months they will discover. something they didn't see that the loans are actually there's a contingency that they become invalid during certain credit events like rising interest rates or something like that and a crisis will ensue and bank of america will say we had no idea we couldn't see this coming up in we don't know and then they'll get a bailout and this poor idiot woman will be homeless you know shooting up smack on the street in san francisco somewhere wondering what happened what happened is interest rate apartheid dear you live in an apartheid state and you're on the wrong neighborhood you're living in the bantustan except it's

a four percent anyway speaking of bantustans we've got to take a break and when we come back much more coming your way. you'll. come. along to open. 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 good truck so i chose to drive truck people rush to a small town in north dakota was an unemployment rate of zero percent like 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 in the mountains just slowed down so much they lost their jobs got laid off and the american dream is changing that's not what it used to be. and it's a tough reality to deal with. you know world of big partisan movies a 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 bats 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 i'm max kaiser time had to go to blighty talk to alpha macleod of gold money dot com the credit cycle is on the turn that's the title of his latest report at gold money dot com and as always full disclosure i do own a small business and gold money out there welcome back to the kaiser report and their max all right so i've read

a lot of your research over the errors and occasionally you hit one out of the park with that's a baseball expression by the way for you brits might not know what i'm saying this is really a seminal piece this is a very major piece you've put out here the credit cycle is turning interest rates are rising they have been falling for over thirty years alister you say the cycle is actually turning so tell us about what indicators do you see is this really happening well the best indicators all this that is they can't really go below zero i know that they try to put it blows zero but i mean that's a little nonsense. so you know. so the first thing it can't really go any lower after the next credit cycle the other thing that worries me is that if you look at the rate of inflation in america it is very understated we all know that c.p.i. says something like three percent we believe it but actually if you look at you

know a costard basket of prices is closer to ten percent as independent analysts have said and there will come a point where when bond you start rising when the fundamentals behind the dollar suddenly are accepted as not being actually good for example you go to a trade deficit running to your list it's going to get up to a billion dollars trillion dollars. and that's a trillion dollars of net selling of of the dollar also the foreigners already who need to. dollar i mean i think this is on us figures they already. twenty two trillion dollars of interest if you like of which four korean dollars seventy four trillion dollars is cash and that was in the middle of two thousand and seventeen they will have more no that is for sure what's being driving the dollar has really been the interest rate differential between. the euro you borrow

in europe the interbank races minus point three percent something like that you can . borrow at three months by u.s. treasuries virtually zero to two point two percent you go to two and a half percent strip to take out of that you geared up ten times because that's the quality of the asset that you're buying and you've got twenty five percent only money you know what's not to like about it and that basically is what's been driving the dollar nothing else really i mean this idea that. the u.s. economy is absolutely marvelous and it's going to be good for equities it is it is strong the u.s. economy is strong because there is a huge deficit driving it there is an awful lot of course going into it this doesn't happen elsewhere this is created the distortion when that distortion unwinds in the dollar starts falling then i think you'll find that not only is the dollar forming but the foreigners no longer buying u.s.

treasury debt and under those circumstances the use long you will continue to rise and rise substantially and then we ask the question what is the rate of inflation in other words what i'm saying is there will come a point where people start thinking very very differently now we know the rate of inflation is closer to ten percent in st sent so what should interest rates be watch of the union new year's treasuries be so you can see how we can rapidly from a low interest rate environment into a high rate interest rate. environment and that's basically my thesis all right well let's look at this you know using what i would call the coloring book. you know analysis of broad stroke so you talk about the credit cycle turning which would mean that credit interest rates start to move higher and of course that's a big negative for bonds and that begs the question why now

because over the past five or six years major financial pond and surround the world have called for a top in the bond market and they've gotten it wrong year after year after year and so why why now alister i mean if you're right you would be the only guy in the world to get the timing correct and i'm talking about the smartest guys in the world have made this room miss they call it the widowmaker you know the absolute horrible they've gone short bonds way too early so why now alistair what what is it what are you seeing the timing why now schwab see no basically because the year old along the u.k. has gone up very substantially in the last week or two and if you look at the ten year it was usually about three percent is it ran up to three point two two percent of the tail end of last week and backed off a little bit the moment which show you no one can understand but when you get moves

like that along that you. start undermining assets and particularly equity asset values and this is something i think that nobody wants to see but you know the relationship is always the same you get you know bonds feet first able to speak second properties then. and so if the financial assets that is the problem that we face at the moment and i think that we're going to see high use in the bond market that will undermine. in equities and then of course that starts spreading into the underlying economy people start looking at their business plans and they think oh a minute we've got interest rates rising so our racial assumption in terms of return on capital to go to revise those we're finding that costs are rising input costs are rising faster than we thought we didn't expect them to really rise very much but they are definitely rising we're not making any money on this new plan we

got from making this which it will that which it so you can see that suddenly business starts turning round and being less optimistic and then starts cutting back on planned operations and it's at that point at the backstop to get worried what i'm describing is that is the chassis end of cycle and credit cycle development i get that we're at the end of a cycle and at the end of a cycle you see a reverse and in this case that would mean higher rates but we're also talking about the fact that we live in an era starting with alan greenspan and continuing through ben bernanke janet yellen and perhaps the current fed chairman and central bankers around the world that are huge to the orthodoxy of what became known as the greenspan put and that is the say activists central bankers who do not respond to cycles they simply keep plugging markets with fresh money when ever there is

a danger of a bond market move down so what would stop the central bankers around the world who recently expanded their balance sheets by trillions of dollars the u.s. went from less than a trillion to something like five trillion on their balance sheet the e.c.b. has got trillions of euro's on their balance sheet that's sucking up all these bad bonds and preventing ales from rising what's the say that we won't just have another round of maybe quantitative easing four or you know a massive bond purchases by. central banks to the tune of fifteen or twenty trillion dollars worth once again like what stops them from just doing more of the same alister. well i can see it is dream on the problem they face is that you have got pent up price inflation building time and this is why i mentioned the fact that the way the the c.p.i.

is cost is it is a sort of evolving bosket designed to reduce the a term rate of inflation there is going to come a point where people begin to think hold on a minute this is not right the rate of inflation price inflation is actually far higher as the official statistics tell us and when they get hold of that idea basically the idea that you could if you like fringe money get out you'll get out of jail that way that is no longer an option because of the inflationary consequence is that you don't talk of all that money that's being printed the last ten years ok so just summarize that a bit so in other words we know what's been going on and we now also now that the modus operandi day for allowing this to go on has banned the misrepresentation of the actual inflation numbers the c.p.i. numbers they are constantly adjusted through what are called quote donek adjustments except margaret thatcher was big during at this back in the faster era

she famously would recalculate how inflation was calculated that was carried on now a sense the thatcher reagan era and so this idea of inflation being at two percent is a complete falsehood is saying it's actually closer to ten percent but it's hidden because you have the ability through mass media etc to kind of hide this fact but so you're saying that the ability so the crux of your argument is that the ability to hide inflation has run its course and that will trigger a reversion. to the mean correct. yes i mean another way you could put it far more simply is that you can prove anything you want with statistics except the truth and the program this people will wake up to that very to the if you like the reality is very simple a person right so just walk us through what this means in an interest rates rise how will the financial world around change in a way that we haven't seen in more than thirty five years so what walk us through

you know what actually happens your average guy suddenly you've got a thirty five year trend reversing bond prices are now on the way. down instead of up which is different than the past thirty five years to how to how does this reverberate through the system well the first thing that happens max is that bond you start rising substantially and governments have difficulty funding that that debt they will be behind the curve as it were when it comes to funding and you find that debt auctions will always be disappointing so you've got higher high you still have equity markets going down and down and down and the general air crisis will gather and that will happen at a time when is virtually impossible in fact it will be impossible to central banks to print enormous money just chop money at the problem like they did. during the

lehman crisis so this crisis is going to be very very difficult different if you like from from the lehman crisis so we're looking at a world where we run into inflation and the inflation is going to continue and that is going to continue to be a problem and that is going to be the root of undermining asset values and particular use where there is a lot of borrowing supporting the price is right we've got less than a minute and there we're going to have for other segment if that's ok but in the remaining forty seconds. let me tell you what donald trump recently said he said the fed is crazy for raising rates your thoughts well is a politician isn't. he you know i mean everybody you know that they don't like high rates but the fact of the matter is that the race has to be appropriate for the conditions and i'm afraid mr trump this indulging in wishful thinking and incidentally there is

a convention of politicians do not interfere with the central banks of the management even though you and i know that they tend to screw it up because it didn't stop criticizing fair enough all right now a segment forthcoming but thanks for being on the kaiser report that's my question max all right that's going to do it for this edition of the kaiser report with me next kaiser and stacy herbert like to thank our guest also because of gold money dot com if you want to reach us on twitter it's kaiser report until next time i. run. the blood flow the best out of the georgia dome of. the concepts

that i was proposing to perform i had to actually prepare myself to die i. don't know so he did what i'm sorry i'm sorry but. it was slow in home or go out of. this country was. really good so don't see. saw. what traditionally if ever it was any good would the west if. yes get more here can be patient. education in all of them a couple so kind of toilet b.s. i mean are you. up. for. all to seventeen years of war in afghanistan the country is stuck in

a vicious circle of violence elections assassinations and reconciliation talks with the world around afghanistan changing the country be able to escape its bloody cycle the. prosecution will need to become almost please show. where you push us off the threat you'll find somebody known to us you do i mean yeah i mean i mean political pressure on the gold you've concluded to secure a dentist who knows when to pull your bundled up business models used by american corporations doubtless wasin completely is sold on good mental disease as you use the control scheme i don't want to see. the solution. in association between. newton can he sell some of those it is just maybe he's

affiliated to an investigative documentary. ghost war on oxy. this is says harlan kentucky. we've all read this group boyce's it was very funny using. a co money city with almost no coal mines left. the jobs are gone all the coal was a said i'd. love to these people the survivors of a world disappearing before their eyes. i remember thinking when i was younger that if anything ever happened to the coal mines here that it would become a ghost town but i never thought in a million years i would see that and it's happened it's happened.

so it's going to rub people also good for just twelve euros fifty a month. deadlines are not a series of bomb threats continues for a second day in the us that is president trump and the american media over who's to blame. the media also has a responsibility to set a civil tone had to stop the endless hostility and also become a u.s. appeals court freen states and or suits against my.