as for exports surging above forecasts they russian oil and gas companies are having an absolutely fabulous year said alexei pushkov general director of citi group global markets they earn more per barrel than they did even during one hundred dollars a barrel oil prices these guys have exorbitant profitability that's right because of the quirks of the way oil is priced in dollars. so russian oil producers are raking it in i guess. goes against the narrative that we're applying some kind of sanctions that hurt them well it also goes towards explaining the cost of production is a lot lower when you don't have to frac refract requires fracking requires heavy artillery you don't just you know stick you know traditional oil donkey one of those things that you always say the classic donkey you know just pumping the put a straw in and oil comes out you have to go down across blasts

a whole bunch of clean water a whole bunch of sand and chemicals in there and then take it out hydraulic fracturing yes so it obviously requires a lot more work it's you don't have to you know you have to be like in serious cognitive dissonance if you can't see that just the sheer mechanics of it would require more work and thus more cost another senior analyst at one of russia's leading banks said russian oil and gas companies are flooded with cash they don't know what to do with it ross neff russia's top crude producer and the world's largest listed oil company kicked off russia's oil reporting season in november with a tripling of net profits and both the third quarter and the first nine months of the year as well as a more than quadrupling a free cash flow one of the key numbers looked at by investors we're going to look at some of the headlines comparing that so ross that's the largest listed oil company in the world and russia's top will producer a tripling of profits and

a quadrupling of the cash flow remember cash flow and as the financial times points out to financial investors who know this that is one of the key numbers looked at by investors except except in the u.s. where cash flow doesn't even cover the costs of production in fracking oil here is to have mines first one is from august twelfth twenty eighteen. in wall street journal frac or is burning cash to sustain us oil boom many us trailer staff increased spending but not production forecast pointing to possible slowdown the other is also from austria journal may seventeenth while it's above seventy frak are still struggle to make money most of the top twenty shell oil producers spent more than they made in the first quarter that's called negative going yes that's right and the point being that fracking industry is short term unsustainable too costly and environmentally unsound but the competitive nature of

the oil market being what it is the low cost producer like in russia saudi arabia saudi arabia you know their costs like under five dollars a barrel you know still in the gallery or oil field you know as you point out sure i mean this is remarkable that while the fracking industry in the us a sustained by monetization is to say it's debt based that they've they've survived on zero percent interest rates that's the only reason why it's been able to maintain because. to all the pension funds it was attractive the yield they were offering on those bonds that kept rolling over you know the share prices themselves have been down but the bonds bond investors have been there because interest rates because they've been repressed by the federal reserve yeah i guess my point is that everyone says well the u.s. is producing a lot of oil and gas now or energy independent word yet as big as russia and saudi arabia but the point as you're making there is that they're actually losing money

on every barrel that that's a key distinction you need to make that it's adding to the debt pile less on the u.s. debt goes to twenty trillion twenty two chilean thirty trillion thirty five trillion or so they keep in gauging these money losing you know businesses like fracking well some nations you know there are reasons to choose sometimes to lose money the military doesn't make any money. this money. is on didn't make money for many years it shows to lose money to build market share but you don't do that in the oil business well they're building market share but they're not but they're losing i mean i'm just suggesting that you have to read between the headlines maybe you're being propagandized by the night like of newsweek or any of these people who hail in us some great you know oil producing nation you are producing a lot but whether what the cost is and whether or not other oil producers whether it's norway or nigeria or saudi arabia russia they kind of understand what your costs are and they are not worried but perhaps you know when you hillary took over

libya she was going to see their oil reserves because it light sweet crude it's got really good oil really good oil i thought that was there i thought there was something strategic about her her destruction of the government i think she wanted them knocked off so that the factors could have you know if with out on the market that drives the cost now going to take it over libya for less money than the cost that the cost they don't want the oil they want control of the oil market and to control the oil market you have that the big factories and the factories need high prices and zero percent interest rates so this want that off the market they don't want the people on the market because ironically you know our barrel oil most interesting is that with the saudis caught now in the journalist explaining scandal it's to talk is that they've lowered the price of oil to throw a bone to trump to get them off and their back i don't think it has anything to do a saudi arabia the price of oil crashing it doesn't i don't know but it's called a debt deflation collapse coming and it's called tapering

a ponzi as we called the last episode is about tapering a policy that's crashing i want to also turn to some more headlines quickly in the last five minutes here outstanding student loan debt approaches one point five trillion dollars outstanding student loan debt increased by thirty seven billion in the third quarter and so that one point four four trillion as of september thirty. twenty eighteen according to data from the federal reserve bank of new york eleven point five percent of student debt was ninety plus days delinquent or in default last quarter a substantial increase from the second quarter so again i'm talking about debt deflation these these are the realities we've you know the student debt like exploded since the financial crash and a lot of that has to do with the fact that it was all taken off the balance sheet of the banks like j.p. morgan chase which is a big player in student loans it's now all owned by the u.s. taxpayer so they've plowed it in and helped as a way to extend and pretend that the financial crash didn't happen for the army

person they gave the money go to school you know everywhere you go around here at u.n.c. duke there's all the student housing being built because they're getting free money for a few years until they default well that's all coming crashing down soon ok so you can't say for a ponzi the debt deflation is a is happening the pocalypse is on the folding. answer coming home to roost that's more powerful than saudi arabia and these forces these cyclical forces the secular change in interest rates moving up now are assuring in a new financial reality for the world's economy and then for the tracker is it because as this crashes and oil prices crash of course if they weren't making money at seventy they're now making money at fifty and they're not going to be making money at forty or thirty or twenty and now another headline again because i know you did a second segment on buying grier it's and this is really relevant to what you're

talking to him about with gold and the alternatives to swift and they are rainy and sanctions and that this is something we could all it for to perhaps in our future once the dollar starts to disintegrate and it's always a chaotic time and when no one knew when an empire collapses and there reserve currency fails has happened quite a few times in the history. and this is a sort of headline that one sees during those times iran executes sultan of coins who is convicted of hoarding two tons of gold coins iran has executed the so-called sultan of coins and his accomplice for hoarding gold coins and other hard currency signaling zero tolerance as it tries to shore up its currency in the face of an economic crisis so they were hanged last week they were accused of manipulating coin in hard currency markets through illegal and off unauthorized deals as well as smuggling the two tons of gold two tons two terms of goes over to johnny cash they know that's obviously a case or cryptocurrency right there you could just put it on the hard drive and

skip town without getting what they do let's get him fry and beat him up dismember him they hung him hung him. saddam hussein hanging you know it's a tried and true is it again this is from an australian newspaper so again terms of propaganda it's hard to really know what sort of information is coming out of around but this is what they're reporting is that they hung this guy now he had two tons of gold as i said arrhenius have stocked up on gold coins and other safe haven investments as the local currency has plummeted in recent months amid renewed u.s. sanctions following president donald trump's withdrawal from the two thousand and fifteen nuclear deal in may they rein in reality plunged to one hundred thirty five thousand to the u.s. dollar from last year's rate of about forty thousand five hundred this sort of chaos will continue i think as more and more sanctions get applied trump obviously is a bit of a bully and i'm sure now that he as in the you know his executive authority the

legislative won't give him what he wants domestically but they executive authority of putting sanctions say on all these nations and dropping bombs and and cutting off people from swift that sort of thing i think will start to wield more and more in the next two years and also as the next crisis happens and unfolds and more currencies start to fall against the dollar. trades on wind like that. i know if we'll see executions or hangs but you never know in the states. act like i got right there on the front lawn of the white house and hanging it not like a good thing in a stray currency manipulators bring him out front. so he's did start some justice anyway speaking a restoration will be restoring the narrative on this show shortly but a little break comes between that and here so stay tuned.

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welcome back to the kaiser report time now to get a switzerland and return with our conversation with uganda grier's of gold switzerland dot com you got a lot of back thanks max good to be back again let's talk more about gold fabulous gold we love golf and we like it because as j.p. morgan said only gold is money everything else is credit speaking of credit egon is a krazzy credit cycle turned in other words have interest rates ended their thirty seven year move down which would say that are we now entering into a bond bear market egon what do you think absolutely yeah been saying there for

a while that interest rates turned what couple of years ago now thirty five year with thirty six year cycle it's very clear and we know that cycles don't last forever and they changed change duration but nevertheless they do looks very clear i you know forty five was the low eighty one was was the high and i remember that extremely well that goes on so the first mortgage rate go up to twenty one percent you know today nobody in in europe could afford three or four percent interest rates on their mortgage we had to go with twenty one percent the cycle is turning back and it's going to go fast because the amount of debt and at some point there will be debt liquidation the governments will or central banks will loose control of interest rates. because the long end of the bond market is going to be sold off and i'm sure that china one day will sell off their treasuries and they won't care

what happens they will try to do it before they're worthless and japan probably will have to do it one day also so you know and that will put upward pressure on and. and obviously short record low rates will be short rates are so we're going to see rates at least in the teens again and probably a lot higher if if there is massive bunny printing which has to be when when the debt markets collapsed so not a good story max and a tough few years ahead and that's the consequence of what the central banks have done in the last hundred years over the last fifty years whenever it were and whenever you want to start counting so we're going to all have a pretty tough time you know the swift system for moving money around the world interbank money movement system costs weft they it has become politicized and they use it now to sanction countries like iran and they use it to threaten other

countries i understand that in the e.u. they're going to develop a swift replacement and that's happening now what are you hearing about this if anything on well i haven't heard much more than you have a nose of course you know that about russia and china working on the same thing. and absolutely you know it will happen it has to have that we cannot have you know the us controlling all the payments across the world you know i mean there was an example recently of somebody in sweden bought a borrower in denmark buy something from from from somebody else in denmark but he wanted payment in dollars so that when the us and they didn't like the transactions or they stopped them for us the money you have and domestic transaction that has to go by a swift because it was dollars and then us us to lots of transaction is ridiculous so therefore clearly there will be alternative systems

and i think in the end the us will have other pressures and we lose that that privilege of being to stop payments going all around them. oh which is nothing to do with. so you know it's inevitable that we will have other payment system both european one in the sense that the russia china one and i hope the sooner the better i mean we always tell people we are moving you are aware of this never ever make a payment in dollars if you don't have to because it always goes by in new york and it's always scrutinized. by legal payment of the money he knows but but but even legal payments is a us you know how does the ability to stop payment which is totally wrong yeah i don't know it's taking this country so long it's obvious now for more than ten years that the us has a choke all done all global payments in dollars and if you don't escape swift then

you are a vassal state so in out buck up countries it doesn't take much to build more of the systems you now it can do a weekend just get get your stack together and declare independence but no you like being a vassal state don't you anyway speaking of the central banks the bank of england is refusing to hand over venezuela's gold here's another situation of own country imposing a financial you know imposition on another country your thoughts i've talked about those annoying i think is just incredible here there because i mean the the u.k. has to hold back the venezuelan gold because the us tells them so. because their house prices are terrorists i think. and. you know i'm telling people don't keep your goal in a bank don't keep it in a central bank don't keep it in the mint keep it outside keep it in private moments because you know governments will try to interfere with everything that can

interfere with sure they can confiscate gold so that is privately held but it's much less likely i don't think they will but it's a but it's more likely that they will try to control gold which is a within the banking system like they're doing with the venezuelan gold we will see much more of that we seeing more and more every week now. people who want to transfer gold from from a bank to a private polls to our private malls for example and the bank is trying to stop them using any means to stop and they don't have any legal right to stop them but try to get on the same when they're making products for the banks or questioning transfers and saying that he can't make that transfer to that bank even within europe and so and another back to say if you want to take out more than five hundred thousand so as francs you need board approval people need a cruel by the bought up to take out their own money you know what it was this was happening here you know i'm going as far to say that i as i said before that i

wouldn't take i would not any matter mate your money in the bank i don't trust the banks anymore and they won't call because you know restrictions but at some point they'll be bail ins at some point they'll freeze the money in the bank because they were needed for who bane is what to say the bank and so therefore people should be careful you know i'm not so. i'm not a prophet of gloom and doom all i am is someone trying to measure risk and i know the risks are greater than ever in the financial system and the risk are greater that that governments and central banks will do things and that will jeopardize that the assets that you have in the banking system so that for you to be careful i tell people where you are you put your money on your own your. your esson not easy they'll get out of the system you know everybody can't just whole goal. you know you should think about how you hold your assets and so you have an insurance in the form of gold or silver out of the banking system you know because that's the risk

is higher than it's ever been in history in my view right you know ever since the lehman brothers collapse and the kickoff of the two thousand and eight financial crisis the question has been who's going to be the next lehman brothers because of course there will be another lehman brothers because none of the problems that contributed to the collapse of lehman brothers have been solved they've only been papered over with a lot more credit which in fact guarantees another layman like catastrophe and the betting seems to be endorsing bank don't you bank seems to pay like the most likely candidate to implode the stocks at a new low all time low the problems with downscale bank and terms of money laundering are grave we know their balance sheet has over a quadrillion worthless derivatives this looks like a black call of accounting nightmare do you hear anything on this guy and i realize it's a bit of a politically sensitive topic but can you add any details of this at all well i've . been following a woman or many i was been following closely for quite

a while and you know they're alone but for their derivatives as you say. and basically the bottom like many other banks is bust you know need be and that's what the stock market is showing. i have a view that don't your bank is not going to be the first to go because you've done your bank goes so does germany and so does the the euro and i think that you know the big door to bank is like all of the german establishment virtually every single german has money in deutsche bank every single bank in the world has transactions. with deutsche bank and for the german government under german bund this bank is likely to say temporarily dortch a bank out

a massive cost if it comes under pressure so i don't think these are the same with barclays in the u.k. which is also hasn't got the best about sheets i think that these big banks will be saved initially it won't in the end it will fail of course but i think it's more likely that a smaller bank go all in all a small or a smaller entity collapses first you know the system is no. waiting for that final little snowflake to grow up for the avalanche of a large to start and that can start from anywhere he doesn't have to be a big bank because the system is so fragile anything any little thing because that in motion and i think that's what's going to happen in the next you know in the next two three years with that two thousand and eight and delights of bank and the who had some problems with the over leveraged banking sector they were able to isolate greece politically and then launder their debts through grace so they got the greek economy to absorb deutsche bank's debt and that's how they pal themselves

out by forcing their debts on to another country my question is this. it looks like brags it if it goes throw well isolate the united kingdom more than they've ever been isolated during they era of the wouldn't it be tempting therefore for the you and your bank to do something similar to the u.k. as what they did to greece launder all their losses through the u.k. economy forcing austerity in the u.k. and absolving themselves on the ramifications of being over indebted it gun actually does the biggest disaster remember it imo i followed quite closely. their way that they are manipulating the brussel the lead a minute edging the us government of course the reason made falling for it. it's sadly either we don't we haven't seen the end of this and no one knows are going to

and but it will be a problem i. am a great believer in independence in not being part of the big five hundred million block where you have an unelected and unaccountable accountable elite in brussels deciding over five hundred million people i believe in smaller units like in switzerland even smaller counties where the councils decide not the central government so i'm totally for breakfast the u.k. must suffer for a while i thought you know the u.k. banking system whether without the e.u. no no one you know paris believe are they going to replace that there's no chance whatsoever that the french could ever or when i something that has been set up over at least five hundred years and the same with frankfurt so i think that you go back it's just a will still be. the dominant system together with new york if the dollar survives where i think it will fair enough great that kay got thanks so much for being on

the kaiser report rata time thank you so much i thought it marked as always thanks a lot all right super well that's going to do it for this. on the kaiser report with me max geyser states ever like i guess you got a bag of gold switzerland dot com if you want to catch us on twitter it's gaza report and selected by a. u.s. veterans who come back from war often tell the same stories. were going up for the people who were killing civilians they were not interested in the wellbeing of their own soldiers either there already several generations of them so i just got this memo from the circular defense office says we're going to act and destroy the government and seven countries in five years americans pay for the wars with them

money on those with their lives if we were willing to go into harm's way and willing to risk being killed for a war surely we can risk some discomfort or uneasy for. what politicians do so. they put themselves on the line they get accepted or rejected. so when you want to be president. some want to. have to go right to the press this is what the four three in the morning can't be good. i'm interested always in the waters in the house.

when a loved one is murdered it's natural to seek the death penalty for the murder. i would prefer and it means to live the death penalty just because i think that's the fair thing the right thing research shows that for every nine executions one convict is found innocent the idea that we were executing innocent people was terrifying who's just new leader who hasn't been there we're even many of the times families want the death penalty to be abolished the reason we have to keep the death penalty here is because that's what murder victims' families what that's going to give them peace that's going to give them justice and we come in and say. not quite enough we've been through this this isn't the way. to.

get moved up by even up when he got to be no good to try to get it but it's a bloody good at the plate. of. this is what the decision is all about on the floor of the united states senate passing a resolution this point that it would have heard that these were encouraged to raise a splits emerges in washington over america's stance toward sunny arabia with the senate calling for an end to ending the gulf kingdom's war effort in yemen something the white house vehemently opposes also ahead.