just killing myself. to feel normal. that's why it's this way. a shot was so near. star cool under which these guys are going through to it it just means to. need to be helped pushed on by the v.a.'s are as drugs you need to be built. they've really shouldn't be looked at like numbers they should be looked at by people if they go to a veteran center for health should be considered as someone who really needs attention. the eyes to the right two hundred into. the nose to the left four hundred and thirty two. british prime minister treason may suffer as

a crushing defeat to have predicted to force agreement to save the woman he rejected by the u.k. parliament is being called the biggest parliamentary defeats in modern history. i have now tabled a bunch of no confidence. and with may's cracks it till shot down the prime minister finds a self in a fun mobile position as she prepares to face a vote of no confidence and head government on wednesday. reacting to the news of the deals defeat still president of the european council hints at the possibility of the u.k. remaining in the. my colleague were research a joint you next hour with a full news program but for now guides through the world of financial wilderness and stacy habits on the kaiser of course.

this is the kaiser report welcome much to cover here today could this. that is what he said to joe lieberman joe lieberman that dinosaur from the past of the democratic party you know he used to represent connecticut for the entirety of my life living in connecticut and he's saying the future of the democratic party is not a o.c. alexandra cortez she responded on twitter who did this i thought that was a good way to what you understand social media she's native to social media joe lieberman is native to the. you know dinosaurs. and i want to also point out we had a very excellent episode a gonzo gonzo episode two airing just on sunday night you can go over to our tease

you to page and watch it we had a great interview with constantine gird given monterey california born in the soviet union and he has some really interesting things to say about this whole dynamic of the political infrastructure here in america the political space this sort of tribalism and this comparing some groups to the mansion of aix and some to the bolsheviks which was quite interesting so you should go check that out gonzo episode joe you know people love this gonzo series that we've got on our team out to max and stacy traveling across the country and there's put a link to it right on their show they should add it to the show put a link to it on their show there you go that's good yes do it and later on this week of kai's reports i want to talk about what else and said because that fits into this whole. political atmosphere here in america that plays into the economics because the politics and economics are very merged right now we talk mostly about

finance and markets and economics but they're really intersecting right now and you know that's an interesting thing to look forward to but right now i want to look at this. tweet from the internet then the s. and p. five hundred is up seven percent thus far during the government shutdown on pace for its best shutdown performance ever so triumph is the best ever the best shutdown and u.s. government history and shutdowns great again. so the average. how the s. and p. five hundred does during a government shutdown is up zero point three percent his is up seven percent so twice what's up seven percent the s. and p. five hundred up market oh right yeah so his stuff market's doing very well while this government is shut down it could be saying something negative about the government that the markets are doing so well once he shuts his government down well remember jay powell got the meaning of the plunge protection team together

when the markets were down heading into correction territory or bear market territory yes so steve actually who tweeted it he. decided to get the plug protection team together which was a conspiracy theory up until steve nugent confirmed that there is a group within the government that is minute relating markets when needed according to them and set up ever since and you know my government shutdowns are very good is because we have an oligarch here and as princeton university their studies have shown that we have an oligarchies and then in fact voters have very little influence on anything the government does so that the government is shut down i want to show you two headlines here that prove in fact that no matter what voters want because we haven't oligarchies because almost all of our politicians are in the pockets of some big corporation no matter what you want to do no matter what how many how much good you want your government to do it always ends up bad well

oregon of course is one of the most liberal states and has you know a very social justice warrior sort of state and a lot of positive stuff right the good old crunchers. sort of stuff well this is appalling if rents were to increase between twenty ten and twenty eighteen by the seven percent plus c.p.i. limit being proposed by the democratic leaders in salem you'd be paying an average over six hundred dollars per month more today. we need real rent control now so what they are showing is that in oregon the people wanted rent control because you know housing prices there in oregon like seattle are out of control you have a lot of homelessness so the democratic legislature has said let's do rent control because that's what the people want well they because they are in the pockets of property developers and stuff like that they've decided that rent control will be c.p.i. plus seven percent you can only raise your rents by c.p.i.

plus seven percent so that would be nine percent a year right now that you can increase rent and that shows the chart of where rents are right now versus what if the red line is if they would have been able to increase that extra seven percent more per year plan well why can they raise a more than seven percent above the rate of inflation in other words rent control should be tied to inflation should be able to raise more than fleischmann so you should be able to raise more than two percent so by saying oh it's inflation plus seven percent you're just saying oh we're going to give this sector of the economy bonus for no particular reason other than we're corrupt it goes both ways so first of all you know they'll set a minimum wage and it's really low so basically all employees employers do is they say ok instead of getting ten dollars an hour you're only going to get seven dollars an hour because that's what they set the minimum wage at here they're saying they're setting the rent control way higher rather than what the solution should probably be is to allow more building but because

a lot of the progressive people there want they like their house prices going up by thirty percent a year they don't want that to stop because that's real wealth they think in their pockets so they're they're like ok well make sure you prevent any new home building in oregon make sure that does not happen but let's like let's throw a bone to these poor people here who can't enter the market will let them have rent control. only going up nine percent a year so we're good we feel good and you know i've been absolved by the markets by my good deeds oh yeah it's financial illiteracy and we like i said about cortez i mean she's brilliant she'll be president twenty twenty four she doesn't know what she doesn't know so here in oregon they're saying ok let's raise rents by inflation plus percent but then the federal reserve bank will say you know what there is no inflation in the economy we have to lower rates because we need to stimulate demand because there's no inflation so which is it is there no inflation or you're going

to have rent control with inflation plus seven percent. well the fact is that if you were to add stuff like housing to your c.p.i. inflation is running at five six seven eight percent in the united states of america and interest rates according to the federal reserve to be at five percent today anything less is a giveaway from the pensioners who have money on deposit trying to earn interest to the kleptocrats on wall street and that's the last twenty years and that's what you palace continuing because he's not going to taper the ponzi scheme he's in the pocket of the bankers it's the powell put just like the greenspan put the yellen put the bernanke you put of course if interest rates were higher at the federal reserve bank property prices would not be increasing at twenty thirty percent a year that would be more effective then you know this this shows you this whole neoliberal sort of virtue signaling sort of economics where a lot of progressives will say they want zero percent interest rates that that is

good but you're seeing the absolute devastation of populations the rise of homelessness across america is directly tied to these property bubbles and these you know the restrictions on building new new right there are in control idea is a symptom of that because the gallows is the upstream is the fed and i refuse to act the fed because they don't think money is something they want to talk about over there in the progressive party it's been. them goes are signaling their social justice credentials and bona fides as being n.p.r. listening granola eaters it's about the central back to you fred it is yes it may be a o.c. we'll talk about that soon so i want to show another headline where again it proves that the oligarchs run everything that they have total control over what your government does no matter who you elect now everybody in the democratic party will say obama was a social justice warrior he was so progressive he was like the perfect president in

history of course he introduced obamacare and again a lot of. democratic voters will say well this was. fantastic because it expanded medicaid and some people are held. of the middle class and those who have to pay the unsubsidised price of obamacare all these health care policies well another new study is out and this is us health care spending highest among developed countries americans on average continue to spend much more for health care while getting less care than people in other developed countries and the chief reason is not greater health care utilization but higher prices according to a study from a team led by johns hopkins bloomberg school of public health research so they looked at the numbers all during this obamacare thing and they found that prices in the united sates are the sole reason why. in general twice as much for health care

here in the united states compared to the rest of the o.e.c.d. than the second highest health care spend per capita is switzerland and that's thirty five percent less than what americans pay but it simply because of price prices going up and life expectancy in america is going down and mortality is going up and macare is looting in the same way that the fed loot pensions by bailing out bankers and giving them all kinds of money that belonged in the count of the pensioners same thing with obamacare they took money from a few million middle class folks and they gave it to the health care industry were without any benefits of having better health care and then saluting and no sort of price like these c.e.o.'s did these health care i mean their health insurance but it doesn't actually provide any insurance for health care so they're making forty million dollars a year but nobody in europe is and that's why as johns hopkins points out it's just

the higher prices these higher paid executives higher pay doctors more expensive hospitals and in fact they said that anderson and his colleagues noticed one big difference. between two thousand and three in two thousand and sixteen a widening of the gap between what public insurers and private insurers pay for the same exact health care services and order to lower per capita health care spending the authors recommend that the us should focus on what private insurers and self insured corporations pay since they pay significantly more than public insurers so that's what i'm saying is like just like that rent stabilization the rent control. that answer is right in front of their face of what what is the solution here they're saying that there's a widening under obamacare of what private suckers forced into the private insurance sector have to pay between and what medicaid or medicare will pay so that's a widening of the wealth an income gap. creating inequality and distress for no

reason whatsoever in order to try to sustain another just like the rent control service is staying for another day these outsized returns for private equity and all those invested in the in the property market here is trying to. basically back a rent seeking sector obamacare was a bailout for health insurance companies and yes companies or a gift more likely to say to position it as and all the bailouts were a gift to wall street so if you're a health care executive or a bank your costs like getting a gift from the federal government of millions hundreds of millions trillions of dollars if you're not part of that cobol you are the one paying for it yes and that's why there's a lot of social unrest that's the yellow vest movement in france and around the world it's the global insurrection against banker occupation is coming to america in twenty nineteen so get your yellow vests and your torch and let's party on do because it's all about the revolution stay tuned for the second half want for insurrection coming your way.

i've been saying the numbers mean something the matter to us is over one trillion dollars and. more than ten going over the. eighty five percent who will do the old bridge the six percent market so on thirty percent is one of your. some with four hundred to five hundred trees per second per second and one rose to twenty thousand dollars. china's building two point one billion dollars ai industrial park but don't let the numbers overwhelm. the only numbers you need to remember is one to one business shows you can't afford to miss the one and only.

president donald trump is repeatedly said the u.s. will withdraw from syria it would seem he's the only one in his administration backing this move is trump in charge of his own foreign policy are john bolton and my campaign actually in the show. when i came back from iraq oh mary was her was cocaine methamphetamine so anything that's altering trying to get us out. that bad mindset using a chemical that would be so. i want to be drinking and drinking ino noon just killing myself. hollings don't drink to get drunk alcoholics drink to feel normal. that's why it's this way drug addicts to. shop while

still going and their. star cool under which these guys are going through to it it just means to. need to be helped and not good pushed on by the v.a.'s are as drugs they need to be built. and they've really shouldn't be looked at like numbers they should be looked at like people if they go to a veteran center for health issues be considered as someone who really needs attention. welcome back to the kaiser report imax keyser time now to turn to wolf rector of wolf street dot com wolf welcome back to cause report thanks max for having me back oh all right first thing i've got to ask is about jerome powell the new fed chairman it keeps using this word patient like oh yeah we've got all the patients

in the world it's very very patient let's be patient what's he talking about why is he keeps saying this. well you know the poor old guy got on a incredibly heavy pressure from wall street and from the white house. to back off just a little bit with their miniscule. glacial rate hikes and her slow balance sheet unwind so they're going to be patient you know that word cropped up in the minutes and it's cropping up now every time a federal reserve governor talks so this is a consensus that word has been decided upon you know and as a consensus for two years just like they decided years ago to use toward gradual in every speech so that gradualism turned to patients.

you know the thing we have to look at is that the fed is trying to tighten financial conditions quote unquote financial condition as is. its award to describe a broad spectrum of things that happen in finance including widening spreads between treasury securities and high bonds and those kinds of things and the markets and that's the market's reaction to monetary policy and the market have actually brushed off monetary policy for like two years and suddenly and october last year they started the credit markets started reacting to it and. parts of the markets and sadly the spread so why the yields are are shooting up you know junk bonds are are so again more expensive i mean. cost of borrowing is getting more expensive for john grady companies leveraged loans are

starting to come down hard and these are the kind of things are reaction to monetary policy and that's what the fed wanted to accomplish when it started this and so finally it's getting some results. so from that point of view and i looked at some of the data you know and those financial conditions have come up from totally lucy goosey a couple of years ago to being you know almost neutral so. you know that was a big move and it came within four months of five months so it makes sense for them . to sit there for a few months and watch how this goes because you know the financial condition is two years to react to this so we don't really know how much more they're going to react even if it doesn't do anything this is big i add so damn i could gin you to react even if the fed stops. raising rates and so i think it makes sense to be patient and and to look for a few months to see where this is going. and you know given the market reaction

last year late last year. you know the fed didn't want to cause a collapse of anything and i don't want to collapse of anything you. do or they have to go it back into some really crazy experimental monetary policies to to keep the financial system in this house of cars that we have to keep it a bright and so i you know i'm i'm ok with the word for for right now yeah right but take a look at the last ten to fifteen years the cash flow generated by the s. and p. five hundred has banned coming from the fed there's no end transit are things by any of these big corporations they're engaging in accounting fraud with stock buybacks with borrowed money that two thousand a crisis generated all that bad money they banks are insolvent they claim that

there are elected and they got the fed to bail them out so if the fed is going to turn off the balance of money turn off the taps than there is no liquidity they can't. solve that problem by hoping it goes away and by wishing that there won't be a catastrophe they have kicked the can down the road for twenty years every single time the chairman comes in they engage with stone as the greenspan put then the bernanke he put then the yellen put and now we've got apparently the jay powell put my wrong. no i don't think you're wrong but. you know i think you do what you don't want is a collapse of the financial system begins that that creates all kind of kinds of crazy reaction by the central banks and so on as we don't have a collapse in the financial system. the fed can be.

you know somewhat hesitant in dealing with these problems once again once once things started to collapse like they did during the financial crisis when really the global financial system was on the verge of just going down you know then. once you have that kind of problem you know things just go haywire i do think there's liquidity out there but it's just a lower price you know liquidity always comes out of the wood war and once prices drop far enough and that's the problem you know people said it's not only quit it well there is always liquidity if the prices drop enough and so that's the thing that people are afraid off to find out what that liquid it is you know you may in uncertain market conditions you may have to go down a lot to find at least quiddity and that may be a test that we're looking at in future years i think when you look at the s. and p. five hundred how it went up over the past and down two but up essentially over the

past twenty years you can compare that to have a nice piece out there including you know the chinese stock market the japanese stock market the german stock market the k. stock market i mean all these indices. aren't they've had their peaks you know ten twenty years ago they haven't gone back and india has a as an all time high given that its currency is down a bit to quite a bit in terms of inflation you know part of that is currency and part of that is actually stopped allegations but most other. amit have seen the high either before the financial crisis or before the dot com bust and in the euro area the dot com bust coincide with the euro the end of the euro boom when people fall before two thousand you know that the year would solve all the problems and so there's a big bubble going on in europe at that time that was up in two thousand so you know this p.

five hundred stands out and it has never done that in history you know you're going to go back to the to someone or the mean and the mean is closer to or the other averages are in stock market averages and a lot lower than they were ten years ago or or twenty years ago so you know i think there is a real test out there and i think it will take a long long time to get this worked out and i have found often i mention europe let's talk about germany for a second it is an quote technical recession what does this mean and for europe and the world economy wolf. germany had. one quarter already with quote unquote negative growth so the third quarter g.d.p. declined. from the second quarter that's the first time that happened in a few years technical recession is one there are two quarters of negative growth in growth in a row we're getting some really awful data now out of germany for the fourth

quarter including industrial production and and new orders notes kinds of things and for germany which is an industrial powerhouse also does important numbers and they're starting to look like you're going to have another negative order at the end of the year so the fourth quarter which will get soon you know that date is probably a negative two so yeah two quarters in a row of declining g.d.p. in germany and that would be a technical recession for a recession to be called out it'll take a little more than them for an official recession but on a technical basis i think in the fourth quarter that's what that's what will i do you look at and you know the government and analysts have cut the estimate that's for german g.d.p. growth in the fourth quarter quite a bit but i don't i just don't think i have cut it enough to still a lot of wishful thinking going on but given how much industrial production has plunged in germany in in. which we just got

a few days ago i mean that was just a very substantial drop and it's been dropping for several months in a row so i think it's going to look pretty lousy i will feel been chronicling the silicon valley and san francisco property bubble which has far outrun the last bottle of two thousand and five of two thousand and seven so how much bigger is this bubble and is a pop finally. i mean this is. you know i live out here so i can just i'm surrounded by it and and i can see it with my own eyes. this is a huge bubble and it's still in terms of the activities you know where we're getting the first indications on an anecdotal bases that some projects are being cut back by some of these big tech companies you know that. starred for faces of being canceled or some projects you know that's a moon shot projects are getting and when i mean for just just announced for good

zero for my company i just announced that it closed at silicon valley in san francisco startup ceria which is right share a company you know so that was one of forward silicon valley and san francisco endeavors you know that bought that company to get into mobility you know what not and and this stuff is getting shut down now that these marginal operations some of these companies are starting to have trouble getting funded by the v.c. community. you know the biggest entities out here the air b.n. b. . and so forth they're trying to get i.p.o.'s this year so they're trying to get out the i.p.o. window before it closes and these are going to be huge mega i.p.o.'s if they fly if that actually takes place now i think some of those will take place this will put a lot of money into people's hands here you know the employees and investors and

some of this money is coming from all over the world you know go somewhere else but some of it of people who live here and so it could be that we're going to get a little second wind here in this bubble but indications are that on an anecdotal basis you know this is about as far as we go in terms of real estate we're already see some pretty significant downturns from the peak earlier this year and so that's already happening in that respect all right i've got about thirty seconds left quick comment on warren buffett's bet on a. apple he's made berkshire hathaway's portfolio twenty five percent of it is this you know the stocks are down forty percent from the high was just a mistake on his part wolf we've got about twenty seconds. yeah it would be a mistake and you'll recognize it now what he did with burlington north and is it bought the whole company when it turned out to be in this day and i don't think you can do that with apple it's too big so i think they'll take a big loss on the fair enough i guess he really doesn't know anything about

technology again but that's been proven again all right well for thanks so much for being on the casa report humax already and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert like to thank our guest wolf rector of wolf street dot com if you want to reach us on twitter it's kaiser report until next time are. here how much you. more. of the. people. you know.