most know coal mines left. the job to grow all the coal was assured that there was a lot of these people the survivors of 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 how it's happened. the headline is the leaders of russia turkey germany and france meet to lay the groundwork for peace in syria and serious differences remain over how to tackle extremist groups in the northwest of the war torn country if radical militants oppose this if they make publications from inside the it live zone but russia will reserve the right to help the syrian government should eliminate this threat of a military offensive by the syrian regime and its backers on the list would have an

acceptable security few minutes here in consequence a gunman bursts into a synagogue in the u.s. state of pennsylvania shooting dead eleven people and wounding six others. and the european court of human rights rules that insulting the prophet muhammad is not protected by freedom of speech upholding a conviction against an austrian woman and. we can read all about those stories you have on our website r.t. dot com i'll be here with the headlines once again in an hour's time in the meantime it's the kind to report. a low. this is a report that's right you got the place right now time to get educated.

says max we're going to talk about dead meat walking this is sears you and i have talked about this for many years because eddie lampert a hedge fund manager bought sears many years ago we need turned it into a hedge fund basically a private equity fund in which he extracted equity from sears for many years sears used to be one of the biggest manufacturer retail outlets in america perhaps the biggest for a while and now it is going to be no more dead meat walking why sirius will be liquidated bankruptcy can only restructure debts it cannot revive mutilated brands and bring back malt customers this follows the script of the brick and mortar meltdown of retailers that were bought by wall street and subsequently subjected to asset stripping and cost cutting which ruined what little was left of their brands mired down in survival mode those retailers failed to build a vibrant online presence and fulfillment infrastructure as sales withered and losses ravaged the company debts became unmanageable but the bankruptcy of sears

holdings as you have so much richer and the restructuring in bankruptcy has a zero chance of succeeding for you have a response to that i want to show you this chart this is the store count which is on track to zero from two thousand and eleven down down down when eddie lampert there it is all sears kmart merger he was worth three to four billion dollars. jeff bezos at the time was worth approximately a billion dollars and i think he 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 of bert's net worth has dropped below a billion dollars. he was loud 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 has 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 bill is up already lampard try to base his empire on a junk retailer and kmart retailer so fright from the get go i predicted this was would fail 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 in one thousand nine hundred and it had some meaning real estate assets and that

eddie lampert was after he'd sold those off and you'll find out basically to himself another entity he owned so he don't wait for him he paper he might have gone down to a billion dollars and that 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 left 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 grey 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 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 conveyance 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 it's supposed 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. years

holding already sold two hundred thirty five of its best stores for two point seven billion dollars in sweetheart deals to ceratin age growth properties when it was still a sears and tittie some of them on a leaseback 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 lamp are settled for forty million dollars so in july two thousand and fifteen there is 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 passed the two years for him to basically not have any confrontation with the 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 lobbyists in washington they in but they populate the legislative branch so they constantly either changing the laws or passing new laws to make this type of scam of property nightmarish developers and court illegal or they can get away with it so until you get rid of those lobbyist see there's nothing going to stop this speaking of lobbyists in d.c. saudi arabia spends more than any other nation on earth probably any 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

true then dismembered accidentally 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 of the best are 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 holding thousands of americans activist groups like say they took down like fifteen hundred. 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 him in the fall they would 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 and accidental murder in 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 film this would be you know there is the plucky saudi oil. the plump saudi royal fighting the truth and for the price of oil not to go up oh well i'm just 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. from has been coming up with a lot of statements saying that the arab states will go should take care of the middle east or other we're still committed to the middle east so there's there's a lot of incoherence there 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 his kind of commentary on the. killing i think that's the end of the day it's not going to change the status of america's polls because of you the.

i will prefer to say. the human space is must become terry wish me instead so we have a leaving in the solar system. and for sure we should expand on. this the solar system i see these and so weigh all bring in and developing more technology new technology so that's becoming even man. increase. in improve the quality of life on earth.

welcome back to the kaiser report i macs are 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 it's a today's 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 to take 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 look at physical coat 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 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 are 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

now so what interest rates or anyone does while not situation happens the currency has had it is exactly the same thing that happened to the jewish walk all the sudden 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 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 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. bases parity bases it is already larger than the u.s. in terms of this economy. 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 the korean will that was 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 or it is spending money in road to carry beer is extraordinary how far trying is 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 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 trying to bragg's it anyway ouster you know you talked about time. 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 this court. 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 it 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 summer i don't know how they get out of that because the saudi arabia is such a controlled place i mean you. the leadership control everything 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 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's 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 see the credit cycles on the turn allison 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 adamic 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 so wonderful complex them out that's the essence of it well 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 treasure that's going to do it for this edition of the kaiser report with me max cousins they see her like to thank our guest allister macleod of gold money dot com if you want to reach us

on twitter you can do kaiser report or download the r.t.e. app and watch our show on your phone not a great idea until next time by. put

themselves on the lawn. to get accepted or rejected. so when you want to be president. or some want to. have to go to beatrice this is what before three of the boys can't be good that i'm interested always in the waters about how. this should. all. come on of welcome two worlds apart the killing of saudi journalists in istanbul introduced a compelling into the middle east policies of several key players.