the share buybacks the plundering of the assets that had been developed by the company for years this is the beginning of course of financialization also happened really kicked off in the mid ninety's that released some shareholder value for a moment and then it's been plunging ever since so it looks like g.'s going to go the way of the dodo bird very soon you know when this bull market is over and that looks like is fast approaching that chart will be its epitaph. that's all you need to know. general electric there's an old saying on wall street as general motors goes so goes america well that's not true so much anymore but with general electric it is true it's one of the generals general electric general motors and that is an example or a chart that shows what happens when a company is engaged in pure financial engineering and accounting fraud for the benefit of the c.e.o.

and others of that ilk at the expense of shareholders the expense of workers the expense of the financial integrity of a nation that's the death of a nation financially engineer by jeff l. mult and his predecessor who i can't remember the name anymore and the current guy who is a guy who is very famously read the verdict and he's the one that sets the motion of course he set this in motion the spike on us financial engineering it certainly excited shareholders who got all the dividends that extracted the the wealth of the company yes well it created a whole group of billionaires but that that those billions recreate at the expense of the bible corporation an integral part of the american economy that's now going bust because remember it was also bailed out in the two thousand a crisis because general electric is mostly profitable b.s.

of the its financial arm its lending facility its trading desk on wall street like so many corporations and in two thousand and eight it was about to go bankrupt but stock got down to single digits they cut the dividend i believe dollars and now it's back down there it was bailed out even though it should not it should have been allowed to die then but this is moral hazard is a moral hazard is the federal reserve bank comes along and bails out all the losers it's anti-capitalist is anti free market it's. not even doesn't even qualify. as america chronically as communism i mean this is clipped crap to zone where it's just a corporation with very wealthy c.e.o.'s very well connected in washington but a gun to the federal reserve's head where there's ben bernanke here janet yellen or alan greenspan and saying print fifteen trillion dollars or you know the country's going to get whacked in two shots to the back to you know. we get it we get the

image but you know the fact is they will perhaps in the next headline find some hope for their own stock price defense contractors unfazed by democratic gains as republican deficit hawks lose influence the companies that make jets bombs an aircraft carriers for the u.s. military are telling investors that the defense business will still be booming under a democrat controlled house of representatives even as a split congress threatens a return to partisan gridlock the defense contractors namely raytheon chief executive officer this past week was telling shareholders that it's great news that the democrats are in congress because that the money spigot will be open for them they'll be getting a lot of money of course you know in most parts of the world it's not considered progressive or liberal sort of economics and politics to be bombing other people but that's what they're suggesting is that the democrats are very happy to go rescue people around the world by killing them five hundred thousand people dead in

yemen even more dead in iraq all of these are like supported by democrats and raytheon is saying that this will be a good thing you know his ads that they buy between rachel maddow is commercial breaks those will do well in this economy couple of good points there in the m s n b c crowd is funded by the military industrial complex so they're not quote state run but they're run by the pentagon which well they're run by. raytheon there financed by raytheon and received on here is saying to their shareholders that democrats their political party who dispense taxpayer money and they're saying that that taxpayer money government funds will flow to raytheon and raytheon then continues to buy more ads on m.s.n. b c that's there's a middleman between rachel maddow this program and the u.s. department of defense and the government but here in the ok race leon is the

middleman between the out right. but it's a private corps pentagon run media outlet and most of the scene there at middlemen called raytheon the second point there is good on that the democrats are really the war party because they believe in infinite deficits right i mean where's the republicans and least make a nodding reference to the fact that actually you need to balance the books and maybe it's a waste of money they have another concept of hard money occasionally which serves them well where the democrats are always about there is no such thing. as a limit we can print and that extends to the war machine and that's why hillary clinton is a warmonger and the democrats are easily conned into spending trillions of dollars in the defense industry and why they control the house defense stocks went up they mean is there any clear indication that the democrats are the party of war this is

the c.e.o. of raytheon and i'm going to rescind quotes from him because the fact is that three of the biggest deficit hawks in the house of representatives which who are republican tea party sort of guys who did hold up previous budgets for defense spending they wanted cuts and this is the c.e.o. speaking in chicago he said one concern that we did have was relative to deficit hawks chief executive thomas kennedy said at the robert w. baird industrial conference in chicago and it turns out that most of the deficit. hawks are in the house and on the republican side he went on to say that the democratic takeover quote changes the equation relative to conversations around the national debt the environment is actually nice now because it's settled we know exactly what it is the uncertainty has been taken out and we know that we don't have this issue with the deficit hawks moving forward so we're actually very very optimistic insert a little side note pertaining to a long running contention regarding this deficit hawk and military spending

it's interesting that the deficit hawks are republican and now with the democrats in the house they're going to go spending willy nilly now donald trump the president states the one way to do an end run around this democratically controlled house will spend another few chilean dollars of taxpayer money go to foreign countries and kill babies is to pull out of nato which is something overtures again in france with trump at the world leaders for the world or one centennial celebration maybe again the point that we don't want to fund nato anymore and that's going to be a huge saving so the democrats can fund lockheed martin marietta and all the war contractors all they want but jump saying ok we're just going to pull out of nato one thing that has animated the democratic base is the. you know the militarization of the border which is a bad thing but it's so bizarre to me as kind of an outside observer of these two

party system is that they don't seem to care that what raytheon actually makes what like things like tomahawk missiles that they seem to think that they genuinely have no. impact on the ground when they drop like that there's no dead people and dead infrastructure annihilated infrastructure that a connelly's in the middle east are ruined like it is just seems a weird disconnect between the two sides that they can care so much about one set of children on the border with mexico but not another set of children and say yemen it just seems so weird disconnect was a good part of this are hypocritical starting to hillary clinton has an image of a tomahawk that explodes and lollipops and sunshine come out of the copy of the constitution is passed around and join hands and sing kumbaya ok but again here's another here's an investment letter that went out also right after the midterms and

this is from jeffrey's investment and again they see the democrats holding the house as really good news for defense contractor shares and just think about that for a bit like what that means and what they're saying but you know i know most people won't because they're partisan and wednesday morning note to investors and title it's always a party regardless of party jeffries investment analysts she. noted the two thousand and six midterm election which democrats used to house at the height of the u.s. war in iraq defense company's shares climbed an average of eighteen percent during that year i guess you could expect defense shares to go forward i know g.e. does do some defense work as well so perhaps that will rescue in oh the company for a bit but of course with the money they make they'll just buy back more shares and hollow out the company and and. in no obviously you don't really have to compete if you're connected to the government if you're

a defense contractor you don't really have to innovate so i don't know if it will rescue g.e. in the long term certainly in the short term you could have a boom thanks to the democrats now willing to dispense money to go fight some more as the general electric is a scam going that claims to be a utility coin but in fact it's an unregulated kleptocracy and yet if it probably will rebound on the death play and does pay hefty dividends and some hedge fund activists has fun while we still call green mailers back in the eighty's will come in and build a big position and it will be the story and they'll make some money but remember at the end of those profits are dead babies actually g.e. shares are down over fifty percent this year and ameritrade and other online brokers discount brokers were retail investors go in robinhood and those sort of apps were showing that it retail investors were the number one buyers of g.e. all the way down and now they're the number one sellers so it doesn't make sense

that they're selling to somebody and it's probably hedge funds building up big positions and then lobbying democrats to give g.e. more money well it's the end of the year so you got to sell your losers for tax losses they have a so-called january effect when the tax selling is over some point the next day weeks they'll be a rebound so it will make easy money and the babies by g.e. on the tax selling loss low and play the january effect. well it was i'm not sure that these were sophisticated investors doing their tax losses at the end of the year but they held on all the way down and now they're you know the good thing is they will have tax losses to write off perhaps against their big gains that they sold at exactly it's a was a winner all around we've got to take a break but when we come back we're going to have much more coming your way so don't go away.

you know world of big partners. 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 smart we need to stop slamming the door. 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.

so what we've got to do is identify the threats that we have it's crazy confrontation let it be an arms race off and spearing dramatic development the only move really i'm going to resist i don't see how that strategy will be successful very critical time to sit down and talk.

welcome back to the kaiser report imax keyser time eh to go to chicago and talk to mr shed lock of miss talk dot com miss welcome back they always a pleasure to. get into it stock markets have been plunging perhaps not yet on the two thousand and eight scale but we've seen a huge losses in the fact stocks in particular that would be facebook apple amazon netflix and google is this a normal correction or recession on the horizon what it what do you think right now it's it's an earnings scare of course i do think recessions are coming up but i don't think those fears have been built in yet ok i just did a poster chart apple's down about sixteen percent or something so you know we're nearing what they call bear market territory here at at down twenty percent but. if you look at

a monthly char these declines of just barely started on a cyclical e. adjusted b. basis cape here. and bit by by show or stocks are more overpriced now than they were nineteen twenty nine the only period that beats where we are now right now is pretty much the tech bubble so we're ahead of the housing bubble right here i don't think people see what's coming it's going to be pretty brutal max all right i'm just looking at general electric hitting new lows and there's a company that is a bellwether for sure and they were engaged in a lot of stock buybacks and other accounting tricks doesn't seem to a paid off in the end but i want to move on so oil prices falling at a record pace miss what's that telling us about the global economy. there's a lot of headwinds here first off china is slowing europe is slowing we've got

bragg's it concerns we've got elite concerns so far the u.s. market has managed to shrug debt stuff off for the most part but max i mean this theory in two thousand and seven was that if you recall trying to was going to de-couple from the global economy i looked at that and said that's absurd the theory now is the u.s. is going to do so max didn't happen then and going to happen now let's talk about the bond market for a second so some are suggesting that the credit cycle is turning down that's after a thirty seven year bull market. and that would portend interest rates possibly entering into a secular change that would be interest rates rising for a an extended period of time was it is one possible outcome this is the biggest question in global finance by far it's

a question that many have got wrong for many years calling the top of the bond market knowing to be fooled by mr market so i i ask you mash to weighed in on this one is this the end what are your thoughts it's possible if we look at what trump is done here with the. deficit if we look at it with the fed hikes we've had here now. in a few years we're going to be paying more on interest than we are on trial runs for military spending that's the path we're on. if we sink in terms of how the fed is going to react when the next recession hits i think there's one more wave down here in bonds bond yields and that'll be the end of it you you won't want to be on them there's

a decent case for saying you know what i don't know i'm just going to step aside but actually i find long term bond yields attractive here just because i think the global economy is slowing the fed's not going to keep hiking trevor and that's that's what's pushing long term yields up right now so to your point there the interest on u.s. debt is that over five hundred billion dollars is for jack to rise to nearly a trillion dollars and. that is certainly going to be a drag on the economy could is serve the line item on the budget from the military spend certainly going to be an enormous drag on the economy but the rise in rates over the past year or so has basically primed the pump so that the fed and various central banks and come back and do q.e. for effectively quantitative easing for so if i hear what you're saying correctly

you think that there's the probably the odds are that we'll see something like q.e. four was one last hurrah and that will be extend this bond market rally a bit more miche and there will be my call like i said i mean we're all guessing here max. a lot of people claim they know where things are going. i been one of the perennial barn bowls and correctly somi people were predicting hyperinflation for so many years. it's clear that's not going to happen. and least he errs till you know how many of these times these calls that we use a oh by two thousand job i do their name i do one and sixteen for sure the problem with all of these forecasts is everybody looks at the us as if it's in

a vacuum but if you look at what's happening to the banking situation in china in europe particularly it only they have more leverage than us does the italian euro banking system is insolvent at sixty two percent of the of the dollar index here so the idea that the dollar is going to crash and interest rates are going to start soaring there's just too many other problems elsewhere i think max for that to happen now bought on the other hand i do think a global financial crisis is coming it's not too far off we're going to see where it starts it could start in china could start in japan right now. it looks kind of like italy to me that's a lot on tact there mash them let me take take a look at it again while you're saying so in other words if you've got the dollar

is rallying the dollar is moving up that would suggest that there's still a flight into the dollar by some of these other economies that are suffering. bigger problems than the u.s. so on a net basis you've got the u.s. with trouble but ron relatives bit late speaking it's. less problematic with the most fingers in a sudden speak so it takes a take that into consideration for the mom it and the idea of inflation or hyperinflation never materialized because the credit market the bond market and these other economies is collapsing faster than the us is printing money and the net the net effect is deflation and we see that in arising dollar correct yeah look at what the fed did the friend bernanke he came they had his armageddon set a scenario you wouldn't trade you know demanded congress allow him to pay interest

on banks max you know and i know that that was to bail out the banks so look at what he did so we got to pay interest and it's free money in the banks right and. he just hundreds of billions of dollars every year. meanwhile over in europe mary o. draggy does something completely different he cut interest rates into negative territory so meanwhile they were they launched a q e in in europe loaded up on all the assets lot of the money out there and then charge banks interest on it so burned iraqi backhandedly bailed out the u.s. banking system burned iraqi exasperated the problems in the. bar with negative interest rates i'm not saying i agree here i don't think we should have bailed out

the banks they all tried to do it but guess what bernanke he succeeded the u.c.b. failed max yet an interesting side note from that bell out history hank paulson was against this all bailout of citibank at the time he wanted to nationalize citi bank we find out it was barack obama who rallied to the defense of the big banks on wall street a lot of people don't understand his role in that particular part of financial history and also i should note that the swiss national bank just sold from what i understand they're apple holding they had a very large business and apple stock they've said they're selling that stock central banks have been buying stock unusually now they seem to be on a winding that stock that could put some downward pressure on the markets if they start on why these positions what about gold mess it's not doing much except trading treading water any thoughts it's been turning water now for almost two

years z z. it's started to rally late two thousand and fifteen and i think that is certainly that's one gold mine or there's a bottom and they took off and many are two and three times a head some of the juniors are four and five even more times ahead and they gold corp is a just a there's some real problems there somewhere because it's hardly rallied at all but outside of that gold is pretty much a reflection on faith and central banks you know people look at it as an inflation hads if you asher if you pull up charts it's not if you compare the price of gold to. the ups and downs in goals the long term movements you know we had a crisis in one nine hundred eighty volcker came in and raised interest rates faith

and the fed was was restored golf all the way from eight hundred to brown's bottom in two thousand when the bank of england decided to diversify out of gold right at the bottom of you know two water two hundred fifty two hundred fifty dollars an ounce i believe the then we had the dot com crisis and people started thinking well you know what does central banks don't ever they're going to control gold rose all the way to nine hundred box they burn akki came out with the statement right about that time if this was when the fears that the eurozone was going to break apart he said believe me he said we will do enough to save the euro and believe me it will be enough that curiously he didn't do anything max didn't do a thing all he did was make that statement q.e. did not come for two more years after he made that statement but it was enough to put face back in the euro face back into central banks. when when

gold bottomed around to two thousand and fifteen or so faith and central back. thanks again came into question i think it's going to come into question again back thing no it will the question is is timing and as soon as the fed doesn't get as many rate hikes price stand. as as they have i think that's when gold really lifts off for the next time right well it's interesting that america's biggest creditors. you know some are speculating that there's a lot of faith in the dollar they're buying gold anyway miche we got to a close it out there will maybe have ya for another segment thanks so much being on kaiser report max always a pleasure to be on the chairs or show i'm ready for another segment right now oh that's good news bish well that's going to do it for this edition of the kaiserin for it with me max geyser and stacy ever like to thank our guest mr shad locke

miche talk dot com if you want to catch us on twitter at kaiser report until next time i. download. the dollar by dollar here's what i think. we got carried away here we care the music with us. we were dragged here. by us going to get rid of those who will not go away who will not die quite. real the hard work we do is that.

it's hard to imagine decades after the war a nazi don't it was still active rich in the nineteen seventies cretonne had as the chair of its board a man convicted of mass murder. and slavery ash was a german company develops in the demise a drug that was promoted as completely safe even during pregnancy it turned out to have terrible side effects what has happened to my baby is anything. you know she said is just. silly to mine victims have to this day received no compensation they never apologized for the suffering. not only want the money i want the revenge. nobody could see coming that false confessions would be that on the spot the way

shape or form for conviction. had any interrogation out there what you'll see is threat promise threat promise threat why a lie a lie the process of interrogation is designed to put people in just that frame of mind make the most comfortable make them want to get out and don't take no for an answer don't accept their denials she said if i would. say i stayed there i would be home by that time the next day there's a culture on accountability and police officers know that they can engage in misconduct that has nothing to do with all their cry.

a. little. bit. british prime minister to resume a battles to get pages to back her draft plan that is key members of her cabinet including the man who held negotiate the deal quit alaska m.p.'s to consider the national interest and give it their backing the withdrawal agreement represents a huge and damaging failure the deal that is already dead in the water newly declassified documents reveal that the cia experimented with so-called.