jeff bezos at the time was worth approximately a billion dollars and i think you made the comment that they couldn't possibly compete for us now beys us is worth one hundred fifty two hundred sixty billion dollars and a lot bert's network has dropped below a billion dollars. he was loud and in the financial press as the new warren buffett and i remember that i made the comment at the time that this was not going to be the case because warren buffett's empire is based on berkshire hathaway an insurance company which is the nuts way to make a lot of money if you just stay honest which is almost impossible new insurance or banking industry ninety nine percent are dishonest but warren buffett is just managed to stick to the knitting over there berkshire hathaway just crank out lots of money and then he uses those that cash to buy huge stakes in companies like coca-cola and apple computer etc and that's how he built this up or any lamp or try to base is empire on a junk retailer and kmart retailer so fright from the get go i predicted this was

would fail and i was correct more than that sears did have a huge brand name i remember getting the sears catalog growing up and this was so exciting and i would spend hours as a child going through the sears catalog and it was so magical and well this place that all these washing machines and beds and clothes and shoes and toys and you got to look through it sears itself also was founded in like one thousand before one thousand nine hundred and it had some meaning real estate assets and that eddie lampert was after he had sold those off and you'll find out basically to himself another entity he owned so he don't wait for him he you know on paper he might have gone down to a billion dollars in net worth but he has these assets which i'm sure will become worth more soon over the last several years we have worked hard. to transform our

business and unlock the value of our assets hedge fund owner and sears holdings c.e.o. eddie lampert said with deadpan sarcasm he has hedge fund e.s.l. and related entities or sears holdings largest shareholders and largest creditors and what they have lent the company is secured by the company's best assets so the value of our assets that he has unlocked has already gone or will go to him and e.s.l. you and i were recently in a series in the past year it was bleak it was soviet like it was every all the workers were basically not motivated they were very unmotivated he couldn't find any help we walked around hello hello is anybody here and this was intentional because he already owned the best assets there was no reason for him to invest in any qualified workers for any building any brands here he had the best assets why why do anything more reminds me of serve philip graeme in the u.k. with. arcadia group where he made some acquisitions and then stripped

out a billion pounds worth of equity in his wife's name in monaco and then you know left the arcadia group enormously and that is causing problems so eddie lampert is similarly of course being the largest owner and creditor at the same time another one of these things that used to be illegal in america but through the lobbying efforts and of wall street over the years it's become legal and what the consequences of being pretty predictable where you end up with acid strippers and their do wells like eddie lampert simply stripping out and pocketing lots of money even though he has been accurate as a businessman is provably quite poor in fact wall street goes into basically how he got around the look back clauses that could deal with fraudulent.

so why why obviously sirius has been a dead man walking for years so why did he wait all these years to finally declare bankruptcy right now they're going to go through basically keep in operation through christmas this is the goodwill as opposed to achieve because they're going to keep these jobs through christmas we're going to care about the american population so they're they now have a debtor in possession loan of three hundred million dollars mostly coming from eddie lampert but one of the ways for lampard to get the real estate is to pledge it as collateral for a loan and then have the company default on the loan another way is this serious holding already sold two hundred thirty five of its best stores for two point seven billion dollars in sweetheart deals to sarah tige growth properties when it was still a sears and tittie some of them on a lease back basis ceratin was then spawn off from sears via a rice offering in july two thousand and fifteen lampert is chairman of ceratin and owns a big chunk of it via the rights offering aggrieved investors and sears holdings

filed suit and twenty seven thousand sears holdings a lampard settled for forty million dollars so in july two thousand and fifteen there's a two year look but back clause for fraudulent conveyance so he basically took this property first he sold it to sears a sears holding then took over that sears holding all in his own name so now we're past the two years where he well past the two years for him to basically not have any confrontation with shareholders in court once again property market offering huge ways to ovoid accountability and taxation we cover the story of course with the trump. making hundreds of millions of dollars with real estate scams. real estate scammer but the reason why this keeps going is because the banking industry is the lenders into the scam the market and so they are the top law. yes in washington they him but they populate the legislative branch or they

constantly either changing the laws or passing new laws to make this type of scam of property nightmarish developer and korea illegal or they can get away with it so until you get rid of those lobbyist in the sea there's nothing going to stop this speaking of lobbyists in d.c. saudi arabia spends more than any other nation on earth probably and more than any corporation on earth and lobbying and because of their lobbying they have a lot of goodwill in america despite accidently torturing to death some journalist who they then dismembered accidently and flushed down the toilet so here's the headline speaking of dead man walking endeavor pulling out a four hundred million dollars saudi arabia deal endeavor is a talent agency and in hollywood owned by ari emanuel who is rama manuals brother well endeavor is trying to extricate itself from a deal with the saudi government to invest four hundred million dollars into the

company the hollywood reporter has learned the move comes as pressure mounts for hollywood to take a stand against the kingdom in the wake of the disappearance and possible murder of saudi journalist jamal khashoggi who wrote for the washington post at the time of this article written you know basically he was disappeared but here i want to point out that also these companies by the way saudi arabia also finances much of silicon valley they're shooting but they're the number one investor actually as outside investors and startups there they basically are huge investors in the atlantic council which then gets to determine whether or not you the ordinary citizen in america whether you're content is allowable to be posted on facebook since since they accidently murdered and dismembered a journalist they are also still in charge of basically eradicating wiping out memory holing thousands. of americans activist groups like say

they took down like fifteen hundred and. you know basically cop watchdog groups that look at cop murders and misdeeds all those have been eradicated so. by the atlantic council who are financed partly by saudi arabia the thing about saudi arabia is they use the oil as a weapon you know if they get too close to investigating what's going on over there they push the price of oil up now on the last ten years because of fracking in america america position to self as energy independent and no longer subject to the political pressures that can be borne upon them from opec and the saudis so we're going to see a real test of this because. all of these a litany of horrors coming out of saudi arabia is making people puke i mean of hollywood which would you know not known for their cultural sensitivity not known for their you know selectivity when it comes to taking

money let's say if they're not taking saudi money that would indicate that saudis are having trouble finding buyers of their allies anywhere in the in the western hemisphere so they try to push the oil you know if you use the oil as a weapon this would be a real test of america's fractures first of all they did threaten to use oil as a weapon but obviously things are cooling down memories are very short hollywood is better than anybody at propaganda basically they could do not zero dark thirty which was an oscar winning film i think that basically made our our own actions of torture an accidental murder and accidental murder in iraq her roic here they could do dark bull they could create

a sort of omagh to m.b.a.'s you know mohammed bin solomon he had already met and fetid in hollywood had dinner at rupert murdoch's house all the big wigs of hollywood with their. i'm sure he's got plenty of money m.b.'s means rocky i mean what an epic sell message being you know there is the plucky saudi royal. the plump saudi royal fighting the truth and for the price of oil not to go up. to waiting for this this is going to be epic but we must wait a little bit longer because a break is happening now and then it will be back with rocky two very exciting film in development now don't go away.

cranking gave americans a lot of new job opportunities i needed to come up here to make some money like me twenty five thousand dollars as a teacher or i could make fifty thousand dollars a year trucks or chose to truck people rushed to a small town in north dakota was an unemployment rate of zero percent like gold rush is very very similar. but this beautiful story ended with pollution and devastation a lot of people have left here i don't know too many people here and just slow down so much they lost their jobs got laid off the american dream is changing that's not what it used to be. it's a tough reality. has

been coming up with a lot of statements in the states of the goetia take care of the middle east or other we're still committed to the middle east so there's there's a lot of include incoherence. but i think saudi arabia is hugely important to the united states and i think trump understands that and this is this is exactly what was driving is kind of a commentary on the. killing i think that's the end of the day it's not going to change the status quo of america's policy so if you don't go. out. there. while give easy val find this us. and. the union said yeah yeah it's rational and.

desirable of the feel. that the new. people in the zuma. to them should. be a lot of. more than a financial. welcome

back to the kaiser report i maxed their time now to return to al from a collapse in the u.k. talking about his latest report the credit cycle is on the turn out their welcome back i don't max i'm going to quote a little bit from your piece and it says here that the world's total government nonfinancial corporate consumer debt increase from sixty four trillion in two thousand two hundred five trillion in two thousand and eight you say today is probably one hundred eighty six trillion. you know in one nine hundred seventy one we rolled up our debts into the new all feel dollar and this is set the stage for what you think could be a reversal in the credit cycle interest rates starting to go up the cycle is turning and i would imagine this would have an impact on the gold market out there tell us about it what's interesting about this max is that i have seen this before as a school this when i was a young stockbroker back in the early seventy's and it was particularly in the u.k.

. at that time the rate of inflation went from something like five or six percent up to a hive twenty four percent at the same time as that was happening the go price went up from so five dollars to one eventually it ended up to a one fixed eight hundred fifty dollars which was a twenty four times multiplication so the important point fars go to is that the idea that rising interest rates is that to go is not right and the reason it's not rise very very simple if you know it says it will go out you're actually comparing it with cash physical cash and if you're looking at futures locations then you're looking at least rates and things like that there is an interest rate on go if you want to lend it. to basically the idea. higher interest rates is that the goat is completely wrong if anything higher interest rates because they reflect

increasing price inflation is good for gold the currency a if if if it loses confidence you have a lot of confidence in the current say and interest rates are going up big to try to restore confidence the markets can sometimes react very negatively to that as we've seen in venezuela argentina and other countries they have a full blown currency crisis and so interest rates are immaterial in that in that environment because people want to just have something that's not going wildly into the garbage pail and they turn to gold now as the dollar has been rising elster emerging market currencies especially the argentina's pace and the turkish lira they have been selling off quite heavily do you expect a debt crisis emerging in even more profound ways in these emerging economies could this be i guess the bigger picture here is it could this be the pen that if pulled becomes like the subprime crisis if it becomes the touchpaper of an of the

financial crisis that's just coming into the for today elsewhere i think not basically. the emerging markets problem problems are. problems with emoji markets and it's currency mismanagement is economic mismanagement everything you like i think the point that gets you touched on which is absolutely vital is to understand the relationship between money and prices is to focus first of all we all know those monitors will tell us that if you increase the cost of money then you're going to increase price inflation but there is another thing and that is with a fit currency it depends far more on confidence in that concept if people begin to lose confidence in the currency which is what's happened in venezuela. so basically there is no hope for the currency it has done the pound and it doesn't matter so what interest race war anyone does while not situation happens the

currency is how it is exactly the same thing that happened to the jewish walk. to the market in one thousand twenty three so i would say that it's the same problem but it's not it's origin if you like as far as the dollar is concerned will not be from emerging markets where you have this on palatable message going out there that confidence in the u.s. dollar could be. in a critically waning endgame if you will and this is not a message people want to hear and it just seems that it's almost impossible to envision a situation where the fed can come to the rescue you know when it comes to forcing . countries to accept dollars and to accept. being the buyer of first and last resort of american debt you know the u.s.

as always relied on the military for that you know when countries try to get out of the dollar what could be iraq could be iran could be a russia could be china you know they start saber rattling south the u.s. still has a huge military doesn't this give them some protection out there not really because here's the real problem if you like and that scale isn't libya and gadhafi it's not iraq saddam hussein is china and china are also i mean if you look at china p.p.p. basis currency bases it is already larger than the u.s. and in terms of this economy. there is actually nothing the americans can do to stop the if you like the you want suit seeing the dollar as the currency of trade. throughout asia and so the dollar effectively has lost that story and this is the problem you know they can't force

it anymore there is a parallel that i would like to draw to your attention max and that is if you go back to when the london go pool failed in the late one nine hundred sixty s. the reason it failed was because there were too many dollars abroad side america as a result of the vietnam war before that it was the result of korean will that is all financed by dollars which were just exported and given that it was the old french indochina we have it now was it was france that ended up with an awful lot of dollars france said we don't want dollars anymore we're going to redeem them for goat which they were entitled to under the bretton woods agreement that was a major turning point when it came to the dollar i think that we're facing a similar situation today obviously things are circumstances a very different but you've got all these dollars i was referring to earlier which are in foreign ownership you have got china which is taking over. the world economy

as it were in terms of trade anyway. china has already got the host sub-saharan africa and its pocket it is spending money in latin america areas spending and money in road to carry beer is extraordinary how far china's tentacles have got is doing exactly what america did in the one nine hundred fifty s. and one nine hundred sixty s. and america what their response their response is make america great by becoming introspective i mean they're trying to sort of. isolate themselves if you like from the rest of the world and so the only one way for the dollars to go and the lesson was what happened way back in one nine hundred sixty seven now we might be a kind of isolationist and all that bellator not try to bragg's it anyway ouster you know a tiger mattei. de dollar rising and i think one of the obvious. kind of telltale

signs there is that they've been hoarding gold they've been buying gold hundreds of times i think they've been preparing for the day when they need to walk away from the dollar and also they've been encouraging chinese people to hoard gold so any consequences that might suffer from a dollar collapse will be made up for locally in the chinese community in china by the fact that they own lots and lots of gold i want to skip ahead to for the first time saudi arabia has threatened to use oil as a weapon ok this harkens back to the one nine hundred seventy s. now this after they accidentally tortured a journalist to death quote unquote and then chopped him into pieces by accident apparently does this threat mean anything should we monitor this saudi back in the new. alister well obviously we do have to monitor it but at the moment everybody's trying to get into damage limitation i think it's going to be very difficult so this one to be brushed off in the same way as you know the traditional over the

spies or the you know the terrorist and followed up i mean that basically is the story that they're trying to push every time that you know an intelligence to discourse. murdering someone you know that is the story the state produces is not believable is the short answer and it seems to me that there is even more evidence to come out of the turkish government hands because just did it bug the concert which incidentally is a vent is an invasion of diplomatic premises but. that i think is a story that is going to get worse before it gets better and it has enormous consequences i think for. b.s. moment in some and i don't know how they get out of that because saudi arabia is such a controlled place i mean you. the leadership control everything and the idea that the leadership was not aware of what was going on in the consulate in.

istanbul i mean it just doesn't wash until they are control freaks in that country oh let me ask you this question then go off script for a second because i know you're over there in the u.k. and he therefore would be watching the b.b.c. . is the b.b.c. covering what's happening with the saudi scandal with the same vigor that they've been covering russia the so-called russia gate phenomenon ouster i think that probably giving it less attention but that is probably because bret cities dominating the news here what i would say is that in front garner middle east correspondent and security correspondent they have got an extremely good man and his reports of credible and worth listening to and it is absolutely fair for more he says that this is a story which is extremely unfortunate extremely difficult for everybody concerned

and we haven't heard the end game back to come out of saudi and the u.s. and the petrodollar and you know tromp said something to the effect of we're going to give the saudis the benefit of the doubt because after all we sell them one hundred twenty billion dollars at the farms every heir and so he and those that means a lot of jobs and you know trump has been very good so far in counting everything in terms of jobs and growth and stock market growth do you think that that dog will hunt as they say in the south do you think that all that will go over is do want to know i mean he comes in a bit of a difficult position here because he's got a bit term elections coming up i think he's got his eye on that more than anything else so anything he says i think is with you. jeopardising republicans. sorry let me let me just jump in because i've got about less than

a minute so i just want to summarize kind of your report here let's draw people's attention to it they should look to the credit cycles on the turn out so macleod is the author it's a major piece in my view because he may ouster may be the only economist in the world to actually call the turn in the bond market after almost everyone else has failed in doing so interest rates are on the rise and that the reason being that inflation which has been hidden through donek adjustments and bad financial reporting can't be hidden anymore and once the inflation genie is out of the bottle then you're entering a new cycle of higher rates do crude i agree with ups yes i mean it's tribal complex them out that's the essence of it i mean if they want a complex version they can listen to the whole frickin interview anyway we gotta go right thanks for being on the kaiser report that was my pleasure that's going to do it for this edition of the kaiser report with me mexico's or as they see her like to thank our guest alister macleod of gold money dot com if you want to reach us

on twitter you can do this report or download the r.t.e. app and watch our show on your phone it's not a great idea until next time. prosecution will need to become almost. a full design. where you push off the threat of fines. by the number one place you do i mean yeah i mean i mean political pressure on that god you. are no clue securely jenison knows when to pull your bundled up

business models he was my american corporations. he's sold on could be mental disease or use he controls the scene and the solution. lies up in association with. newton he saw as it is just simply his ability to maintain an investigative documentary. ghost more on oxy. i would prefer to say that. the human space is must be come into the ground and terry push me instead so we have a leaving in the solar system. for sure we should expand to. all this all the solar system i see this way all bringing them developing more technologists new technology so that we can even learn. increase

in improve the quality of life on earth. runs of the globe the best out of the jewels of. the concerts those preparing to perform i actually prepare myself to die i. don't know so i need one of those sorry trust with. you. in the home of. her mother. this country was. she had the good. fortune to show you a bit. more deep mission. education

a. very good job. the leaders of. germany and france get together in an attempt to move this syrian peace process forward to. the discussion. by police shooting up a synagogue in the u.s. state of pennsylvania the gunman has now been detained. and the european court of human rights throws out an appeal which sought to use the freedom of speech did.