well look at this story of. just what you know the likes of obama what they think is acceptable in this day and age for a candidate deval patrick foreclosure mogul how the twenty twenty democratic presidential contender helped a republican billionaire rip off the middle class basically they talk about the fact that deval patrick who you know was governor for massachusetts for a while and beloved there despite his entire record he had to help rolan are now who had at one point been under investigation when he ran a long beach mortgage company. for basically predatory practices towards african-american population and then he went on to found after that a company called america so ameriquest was one of the biggest subprime mortgage lenders they basically ran and tire predatory operation of driving a lot of middle class especially african-americans into bankruptcy into foreclosure

losing their homes and this guy developed patrick who is a democrat friend of obama a very good friend of obama he also went to harvard law. here's a guy who's a predatory lender and obama wanted him to be the candidate for the democrats for twenty twenty well it makes sense you know the democrats are always about making sure people have a home and getting them into debt and then to kill that kill their home you know the probes are lemmings games are you know attacking each other you know they don't throw rocks at each other now you throw loans at each other and then hope that the interest rate differential on your loan packages are more advantageous to may then the different interest rate differential on your loan packages for you that you're going to bankrupt yourself faster than i can bankrupt myself and that's what the modern warfare so china lending the us money but then they said well you're just using the money we lend you to wage war in places like africa where we want to build our businesses while we lending you money to wage war and play. they

were trying to build our business and the us is saying well we lend money to all your corporations that are competing with our corporations in the telephony business and so yeah but our debts are exploding at a different right than your debts and so it's a black hole versus black hole it's not equity it's not even debt because debt is an asset according to banks' balance sheets it's more about waging war using. these black holes. financial engineering quantum physics and they're just throwing . concentrated exploding balls at each other to no to no avail it's also another part of this whole neo liberal the uprising against the you know liberalism is neo liberalism uses contracts these are holy sacrosanct documents that you cannot ever you know you know you can contract rules so here they were saying like basically remember after the subprime mortgage crisis saw the largest

destruction of african-american wealth since reconstruction and ameriquest was at the forefront of doing that deval patrick himself was being paid something like close to four hundred thousand dollars by ameriquest to be on their board of directors he himself is african-american as well so he. abided over this system because of this neo liberal like it's the contract that destroyed your wealth it wasn't any individuals it wasn't a system it wasn't systemic that's you know this this predatory lending and theft of wealth that happened it was just like these magical contracts that are holy and divine and brought upon us by some sort of data but i say balls i meant that bomb throwing that bombs at each other and you're right about the contracts and of course the terminology is also used by the mafia and they take out a contract on somebody they're going to whack them and. this is predatory lending as they're trying to cut into the mafia business because the mafia is considered to

have the best business model in the world and so all these corporations are trying to emulate that predatory debt as their number one source of income and then they all do it at the same time they're dating each other to death is what had like a rat trap on an island you know they eat each other and then all the rats are eventually dead so all these corporations and countries are eating each other using debt and they're all going to die rat island well we're doing it to the individual as well we have student debts exploding those student debts for example are not dischargeable you can never escape these debts in the predatory lending sector in terms of subprime mortgages and payday lending we have another headline here because because of the sacrosanct nature of these predatory debts in our economy in our society we have you know the likes of drug runners and drug mafia kingpin sort

of people. entering into the predatory lending sector because the courts are on their side they don't have anybody shooting at them they have the court system protecting them and this is an interesting story a drug smuggler built a predatory lending company while free on bail now the complaints are piling up and they're talking about this former marijuana drug trafficker called jonathan brown he lives in staten island he has a company here in lower manhattan called richmond capital and well he has this huge empire in the seven years that he's been awaiting sentencing for his marijuana trafficking brown has become a major player in the lucrative field of small business lending from an office in manhattan he advanced as money to truckers and contractors across the country at interest rates that would exceed four hundred percent on an annual basis rivals says that he brags about making millions of dollars a month they get around laws against predatory interest rates by saying it's a cash advance rather than

a loan so he's able to charge four hundred percent rather than i think new york caps it at forty percent where you're allowed to charge interest but in terms of this sacrosanct nature how they get around this and how they get the courts on their side is a term from religion confessions basically once a give you this cash advance. you also have to sign a confession a document called a confession that basically gives this. lender to you the right to seize all your assets your confessing that whatever they're saying is true when you don't pay back the debt these extraordinarily predatory rates they can the court will go and seize your assets yes they'll see what every having a bank account they'll seize your house and so the courts are brought in because the courts are sitting on a property that's collateralized by mortgage debt that's been sold off as well so the courts are going to work with the courts and all the judges and all the lawyers

are in deep in debt and they need to pay an interest rate they're part of the debt rat island so they participate with the organized criminals who are waiting to be charged on marijuana charges to get into the predatory lending business you know to truckers in the truckers are moving a lot of the marijuana and they're moving a lot of the material to the bankrupt housing industry and they're totally in debt and their wives are totally in debt and their kids are in school and they're totally in that when you say that the student debts not dischargeable there is another term from the mafia because you discharge your weapon don't you when the bullet casings come flying out and all the students are getting themselves to death and all the mafia is dead in themselves to death and all the judges and all the lawyers are getting themselves a death dead rat island another called america they're going to replace those fifty stars with rats and all those bars are going to be the bars that debt prison and it's going to be a beautiful debt based future and you can sell it right now and collateralize it and earn interest on it again i'm going to go into this confession element to it

and it reminds me of the religion and the sacrosanct nature that we bestow upon these contracts but also the mafia and how they shake down what the how they used to shakedown people in manhattan it's now become legal once you bestow it with the the sacrosanct nature of a contract collecting a debt from a deadbeat borrower used to be time consuming. but some cash advance companies found a way to speed up the process the key is a legal document called a confession of judgment borrowers are often required to sign one before getting a cash advance and by signing they agree to lose if there's a dispute with the lender armed with this paper lenders can go to court secured judgments against borrowers without telling them and then seize their assets cash advance firms have obtained more than twenty five thousand judgments in new york court since two thousand and twelve most of those in the past two years according to the data compiled by bloomberg news richmond capital has filed at least two hundred fifty confessions of judgment and that period remember again new york is

considered like you know very liberal progressive social justice warrior sort of state and here are these twenty five thousand confessions of judgments this is sort of like you know the inquisition sort of level like like torture is like burying you know trying to drown the dead or. the australian to play to sign off on a new account you have to sign off to your right to arbitrate with a jury of your peers you are bound to go into arbitration by the industry itself brokers and bankers and so less than four percent of all the money stolen by brokers on wall street is recovered for that very reason but they have to take it a step further if they have to confess to your lender in a way that they have access to all of your assets if you don't pay the predatory loans after they make the loans using restraints of course usury is against the bible it's against god and so they.

i believe god is in debt and that's why we don't see many more because see so in debt to these predatory lenders on wall street he's hiding somewhere with john mack of the small south american plantation but let's listen to how this is bloomberg business week and how present they. they still refuse to see that wall street is the same exact sort of model because they try to differentiate these two the profits have attracted big money from wall street as well as from shady or operators drug dealers boiler room stock brokers and payday lenders you know they're the same thing they're the same thing if they're operating the same business model they're the same thing you could try to and this is by the way you can apply this to what trump because trump speaks like a new walk like you know a thug from the seventy's from new york from times square you know they they think

that he somehow different from how obama operated somehow when he presses the drone but like it's somehow shady year and dots year and more evil than when obama did it so here they're saying like they're trying to different well wall street when they're you know the white shoe firms and all these sort of posh people they when they shake down somebody when they foreclose when ameriquest it like that is that is an example this drug dealer from staten island this is like tawdry all these women in their territory. wars for the. and every country is doing it every corporation in the world with one notable exception a country that's actually paying down never had lowered russia they were going to take a break coming back right after this don't go away. i've

been saying the numbers. they matter to us is over one trillion dollars and. more than ten thousand dollars fine for them to do. eighty five percent of global wealthy loans to the rich eight point six percent market saw a thirty percent rise last year some with four hundred to five hundred three per second per second and bitcoin rose to twenty thousand dollars. china is building a two point one billion dollar a i industrial park but don't let the numbers overwhelm. the only numbers you need remember one one business shows you can't afford to miss the one and only.

you know world of big partisan movies a lot and conspiracy it's time to wake up to dig deeper to hit the stories that mainstream media refuses to tell more than ever we need to be smarter we need to stop slamming the door on the back 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. seem wrong. wrong just don't call. me. yet to stamp out disdain become educated and engagement close to trail. when something find themselves worlds apart. just to look for common ground.

welcome back to the kaiser report i'm max keiser time now to turn to michael pancho of pancho port dot com michael battle welcome back thank you it's going to war through into long has been achieved yourself under out i think you think couplings

they've got to have a stick like you know what i hear it costs actually wingtip shoes i mean talk about wall street and wing tips users are actually term old school baby fantastic thank you and i are let's get into some heavy duty stuff here now the trump know the yield curve the yield curve has inverted tell us what that means and then what it means so it's very on the three to five year spread ok and from two to five year is completely flat and people are willing to buy bonds on the longer end of the spectrum. then the shorter of the spectrum ok what does that mean why do i care well the last nine times that has occurred we had a recession the last one time since one nine hundred fifty five and i heard some person on c. and b. c i did listen to its volume on a made a mistake this morning i promise not to do that again but this person said it's different this time it does not matter because the yield curve is inverting for technical reasons i say bunk ok the treasury is issuing bonds on the short end of

the yield curve because deficits are thirty three percent year on year so they have no choice they can't issue bonds on the long end of the zero curve because there's no demand for that but why are you in the long and falling max let me see is it because or you know trump and paying shell cans and everything is wonderful no because global growth is slowing look at the emerging markets look at germany q three g.d.p. a minus sign japan q three g.d.p. a minus sign and earnings growth here in the united states is going to be going from twenty five percent in two thousand and eighteen to zero or below in two thousand one thousand so people are getting snow ervice bond investors are scared much smarter than equity investors there by along any of the yield curve because the fed has maybe one or two hikes left and then that's that's it they're done and then one and then and then what we have we have a real problem because i asked myself this question coming up here driving up from

central new jersey if the yield curve inverts now and i did between the three and five year curve that inverts ok but basis points but who cares the spread between two intense around is around ten basis points so it's going to happen it's going to happen probably by the end of this year or early two thousand and nineteen but i have to ask myself this question if it does happen again and looks like it is going to happen as far as the recession is concerned you virgins already here and nine ninety percent of the time since world war two it's led to a recession the one time it didn't happen was a brutal slowdown in the economy early ninety's. what is the global economy what are the global elites going to do about it this time so let's say we have a worldwide recession what did you pan going to do are they going to lower interest rates you know they're still it negative on their discount rate their central bank balance sheet is bigger than the entire economy. european central bank balance

sheet is almost fifty percent of their economy we hear the united states four and a half trillion dollars now winding down to four point three but the fed is selling six hundred billion dollars off their balance sheet each and every year they're burning cash max so if you you know if you want to make money in the stock market i would just say like this other guy i heard on the n.b.c. say you just should buy stocks and hold them forever because who cares if there's a recession they're not short not long lived their short lived in nature and the stock market always comes back but the last two recessions the stock market dropped by fifty percent and as i just was alluding to before the ammunition to pull us out of recession just isn't there anymore well that's the point that we should focus on here in other words the you get on the show we've been talking for years now and we're all friends going back to alan greenspan they brought in the thing called the greenspan put right ok so in other words markets were eighty seven crash and

greenspan and reagan and the rubin the treasury secretary they got together they started buying treasury s. and p. futures they supported the market for the first time the federal government was what was behind the plunge the plunge protection team and they became activist fed yes they were no longer the paul volcker if that's still true right then we went over to bernanke we had the bernanke and the janet yellen put thirty years of an activist fed not steering or piloting the economy of the economy they are living on me they are the rest yes they are that's fine so who bails out the person who smokes and he doing the bailing out the less i want to thank god i'm on a show like this i could you know it's like a soundbite show i can actually expound on the so ok so we have something called the business cycle right max ok so you talked about one thousand nine hundred seven let's go back to two thousand and two thousand and eight what happens is there's a lot of debt out there and i saw you talking about it on on one your other shows lots of debt out there well how does that come from primarily from banks and shadow banks near banks ok. banks loan

a lot of money to the private sector consumers and businesses they take out a lot of debt and then when they take on so much debt they can't pay it back it's supposed to happen is a mild recession ok but somewhere along the way the central banker said we're going to repeal the business cycle we are no longer going to allow any recession or even a drawdown or even a ten percent pullback in the stock market ok you know joan your own power ok remember we're going to go we're way away from neutral we're going to go above neutral which means three and a half percent you wall street then wall street has a ten percent pedestrian banal and sippin dull boring correction and trump has a conniption and powell pulls the drain on his whole is whole rate i can command a campaign sort sort of well let me continue on with the business cycle so what happens when the business cycle and we're debt saturated as far as the consumer's concerned then what happens is the government starts to borrow money but who owns the government money because i just said the the personal sector the consumer

sector were chattering disabled well central banks by government debt but they're all levered up they're levered up to the hilt and use mentioned on one of your previous programs that the central banks are to start printing money again i have no doubt that they will they'll stop to a four they'll stop raising rates in the united states everybody else can't stop because they haven't even started e.c.b. hasn't even started bank of japan hasn't even started people's bank of communist china is just a train wreck ok but when they do that you have to ask yourself a question they might go back into q.e. like you do say q.e. four in the united states but what's going to happen will run of occasions when the whole world now knows that interest rates can never get above zero by very much at all and the debt that central banks purchased has been permanently monetized i asked him. are the answer. well the answer is that fia currencies are going to be

traded like currency crisis all over the globe right it's not going to be the dollar against the yen or the or the pound or or the swiss franc it's going to be all of them but we are going to lose their value against gold like they never had all gone lost their value before hand because because because what is gold love low interest rates and falling fee currencies you're going to have that like you've never seen before right now as a money manager because that's your day job yes that is you know you but i don't know for many years you are a big gold advocate and we are in a period where gold underperformed so how do you as a money manager i'm curious because i worked on wall street too for many years how do you kind of keep nursed opposition along while still having exposure to the stock market even though you don't believe stocks are priced in a way that's sustainable still have to participate as a money manager money that you can nurse so i have a way to use i have to tell you when i run sort of

a hedge fund is an r i a but it's like a hedge fund so i have the ability to have a model that i created the twenty point model inflation deflation economic cycle model and that model said being underweight gold for the past few years and believe me only only five or ten percent position in gold was horrible it was horrific so actually in the minors it really hurt your performance but the model tells you when to go long gold when when interest rates are falling in real terms and when fi currencies are losing their purchasing power seriously at all yes you have you got a lot of short so what i've been i've been long utilities i've been along the u.s. dollar i was short emerging markets and just today. nine thirty in the morning i went short on some inverse e.t.f. that we were very successful when i bought them in september really yes ok so this is a lot of four years it was short the market yes i did but that portfolio the way you're describing there is kind of like with the pack it's not all that you know what i

mean well whether it's it appears that well let me say with that how do you know that this is how it was three packages i'm going to tell you that i can beat the s. and p. five hundred yeah that's what everybody does and they're going to charge you a huge fee and then eighty percent of the time they don't do it if you just go out and buy yourself s.p.y. as well you have to do and you're going to be every eighty percent or less or more of money managers but what i try to time the market you can time the market you have to know what sector we are between inflation deflation and the economic cycle here for years i'm going up to ok so now when the market has these turns let me guess talk the yield is inverted yes a cyclical that game one of my component of my you your portfolio is ready to outperform in a big way because you you are you go you go ahead yes now you're going to go ahead be sure in a short and are going to go long gold and if that all plays out you guys are going to shoot the lights out yes so i have the twenty but you know you want to buy me lunch and actually because i knew lots of the last three times you know you aren't

even for the use of a story you know interest rates is long besame out if they see comes along a buy you breakfast lunch and dinner ok is that cheese you guys in new jersey that fast i got to watch you like i got to watch you closely come in here went to. the slick outfit the suit and next thing you know you're having an uber have breakfast with us. michael pena. does continue this last likely actually while you get your place can i just mention something to you the problem with the with the u.s. market and the global economy in general has almost nothing to do with tariffs how did this start down actually was. it already which i know i could see were simpatico i know you know so china was slowing down profusely before we even had to talk about tariffs why because china took on between the year two thousand and today they went from two trillion dollars in debt so forty trillion

dollars in debt i think your debt is a problem the usa have there is no country on planet earth that took on thirty eight that percentage of debt thirty trillion as a percentage of who ok in that span of time in twenty years i mean the point is they are seeing us. between the us and china for global supremacy the problem china has too much debt relative to the us and we have the where the what the will the most wonderful china where the jury what we are the amoeba with the highest i.q. is what i look what i like to say but when china went to you know they had also wanted to repeal the business cycle so they decided to build mt cities you know i said this is a shocking statistic i did make this up to secure twenty percent twenty percent of all edifices in urban china already right ok so when they had their fill of paving china they start paving over with their belt road initiative the entire. eastern european nations and taking over their ports and their roads ok this is

a nation that is in deep deep trouble china is no longer growing bold words from michael of penn to port dot com i predict he'll be outperforming just about everybody on wall street the next twelve months except it going. well thanks for watching the kaiser for with me max kaiser and stacy ever like to thank our guest michael petro ports dot com if you want to catch us on twitter it's kaiser report and so next time. join me every thursday on the alex simon show and i'll be speaking to us from the world of politics sports business i'm showbusiness i'll see you then.

prosecution will need to become almost in this show the fault is all in court where you push us off the threat of fines come or somebody no longer seemed to i mean yeah i mean i mean did our political pressure on that god you finally mind controlled you know through security jenison knows what to call your kind of business models he was my american corporations jadhav lossing conflict is sold on good mental disease as an abuse control scheme i know was on the scene and the solution. lies up an association between. no two can he sell some dollars it is just simply his ability to maintain an investigative documentary. ghost war on oxy.

yes there is a saying. i think there will be chief justice and then through and through all that country stuff let's ideas they're right to scold us comfort he said fifty give them everything slip to the past. leave this country. this is what we don't understand how we are poor in such a country. let us into the ones at the same time. noticing how. the soon to run up or lose similar similar. because if you feel if the middle of on board not that god can we believe again with the phone about the future with the plane. would come back to the place story

if you have to see. to. move. move move you. subscribe to roughly boston get in for just twelve euros fifty per month. this house wants to sit. sparing herself a major defeat the british prime minister cancels a crucial vote on the brakes it triggering more colds but to ease the maze resignation.