declining power always once said pull up the drawbridge when they can no longer compete and win just as the united kingdom did leading up to world war one so here and this story is quite remarkable this first headline because one thing we know that once the us dollar was no longer backed by gold from one thousand nine hundred eighty one what they did is they backed it with oil essentially pricing or oil especially their relationship with saudi arabia to keep the dollar float well washington eyes cracked down on opac legislation targeting opec is suddenly gaining steam and the u.s. congress raising alarm bells for the cartel on thursday about a week and a half ago the house judiciary committee passed a bill that would allow the u.s. justice department to sue members of opec for manipulating the oil market the so-called no peck bill would remove sovereign immunity exposing member countries to antitrust regulators. yeah this little alliance has been going strong sons the

seven days opec remember the quid pro quo was the u.s. would buy saudi oil and saudis would buy u.s. debt and of course the energy industry is capital intensive and all of the banks and energy companies in america generate a lot of debt and they needed some place to park it and they parked it in saudi empire and in return for the oil so this symbiotic relationship apparently is falling apart as we enter into the d. global d. dollar arised world and i think it's quite humorous now you know the saudi flag that green flag of the arabic writing and a lot of people now put in the. to the flag you know that's like the national symbol well they do say that the assassination of jamal khashoggi is part of the reason why the democrats are now pushing for this this sort of bill has been introduced many times over the past few decades but. never gain steam because both

democrats and republicans support the relationship with saudi arabia and of course the whole dollar system is backed by recycling all those other cash gained from sales of oil that saudi arabia has that poor back into u.s. treasuries so it's been a quid pro quo relationship but now as they're falling apart i mean partly it's tied to the population itself we have a democracy so we have a vote and american people have realized that you know they've waited thirty forty years after the end of the gold standard and after that introduction of china to the world trade organization and they've lost lost lost lost as been a lose lose situation for them and now they've elected trump who promised to make america great again and nationalism and shut down our borders and globalization because they've lost that it so here you have a situation where the democrats hate trope and they've been of course a lot of the democratically have been huge winners from globalization and they are

reacting against the population in this way they're like we're going to end this opec relationship in theory so they're saying like saudi arabia own motive to prices which owns the largest oil refinery in the county in port arthur in the country in port arthur texas so that could theoretically be seized now of course the likes of exxon mobil and other huge multinationals are concerned about their own assets in places like nigeria which is part of opec so if there's retaliatory measures introduced but nevertheless this is the sort of conflict we see start to erupt at these periods of transitions of empires or superpowers and usually the empire the guy who has been the the big man the alpha dog in town usually like throws over the monopoly board and doesn't want to play you know well i mean go back to the currency markets. japan that it is zero percent interest rates twenty

years ago so they became a place to borrow money and most money in the world is borrowed from japan and then it's invested in the higher yielding currencies it's called to carry train and high yielding currency carry trades are the backbone of every s. and p. five hundred company in every country in the world as their cash desk as it's called a keeps the coffers full to pay the c.e.o.'s and their minions and the princes the underlying economy how ever at a zero percent interest rate collapses because there's no price for capital capital becomes worthless if the interest rate on capital is zero so i could go to e bay and everything was priced at zero e.-bay would exist any more because it was just collapse because there's no price for anything and you need a price for something for a market to exist with the price of money being zero as been as there are now for twenty years for the elites the price for everything else in the economy is chaotic

there is no price discovery because the yield curve has gone to zero because as of twenty years ago and then exacerbated into the two thousand and eight crisis the entire global economy is in meltdown so now we're just seeing the realisation of this by countries like saudi arabia that for a long time they could just stick a straw in the ground oil would pop out and they fabulously rich but now the whole oil dynamics is and is changing the banking industry is changing interest rates and currencies are changing so as i say you know centuries are to find usually by the fourteenth or fifteenth year into the century you know world war one came in one thousand nine hundred eighteen and beget the bloodiest century ever in history humans had i believe napoleon in the previous year came around and really grew the rat map of europe and now we're seeing now in twenty one thousand the defining characteristics of the twenty first century it means dollar is right now being panic bought as a safe haven. that will give way to panic buying of gold and because very soon and

all these economies it will head into vicious negative g.d.p. spirals and so will world war so the us itself is leading this dollar is ation because they're basically saying well if you're going to do dollar rise then we are the fact is that saudi arabia is opec ok so it does they don't really need all those other nations to raise or lower reduce supply saudi arabia is the only one with that sort of sweet easy to get oil that they could turn it on and off easily. most of their oil is now going to china is not coming to the u.s. or other markets so that relationship is becoming more important because china's a bigger growing economy we ourselves you know the elites of both republican and democratic party sent all of our wealth and our assets and our wealth creation more importantly to china. in terms of whether or not this will happen we are just

a tweet away from you know pack becoming law of mally of the rapidan energy group told that financial times but now he said that legislation could lead to more volatility and lower prices if opec was unable to restrain supply after a good dose of no pact if it was successful we would end up begging them to reunite get back into business and start controlling supply because of course there are a lot of great jobs in the fracking industry here in america those are jobs that are paying one hundred thousand dollars a year only other option is working out wal-mart for ten bucks an hour when i look at all the globalized institutions that are breaking apart now opec the e.u. nato. nafta un un bodies are breaking apart because some nations recognize parts of palestinian cultural sort of things and. and so we're. devolving back into five times or evolving depending on how you look at it back into five times and tribes and all those tribes eight interoperability and i

suggest an open source triple accounting currency by the name of a coin. but like i say i think it's just the west who have been the winners so far in the last hundred two hundred years and where the if you look at china they're deeply trying to integrate with all of the rest of asia and all of europe that it's in their benefit if they want to write they can't rise to power as an isolated entity. so we don't know if this will become law we don't know if this will happen finally but there's a likelihood that it could because as he said we're just one tweet away it just takes time to be angry about the situation here's another in terms of disconnecting from the world and kind of the signals you're seeing from the rest of the world it's always hard to tell winter inside that fishbowl of empire of a declining empire what's going on in the rest the world what your actions are in

the rest of the world what your you know the praetorian guard as it were out in the edge of empire what they're doing but russia to disconnect from the internet as part of a planned test so russian authorities a major internet providers are planning to disconnect the country from the internet as part of a planned experiment the reason for the experiment is to gather insight provide feedback and modifications to a proposed law introduced in the russian parliament in december of twenty teen a first draft of the mandated that russian internet provider should ensure the independence of the russian internet space room net in the case of foreign aggression to disconnect the country from the rest of the internet so you know between accumulating gold as many nations the further and further east you go those nations are accumulating gold remember i'm saying that china is the center of this new rising power they want to connect and integrate the u.s. as the declining empire who is like wanting to ban and put tariffs and stop opec

and stop huawei and stop all these things and at the edge of the empire they're staffing gold and they're starting to make plans for being attacked from the. global grid whether it's swift or whether it's the internet russia is preparing for the worst and if it doesn't happen i'll be in good shape because i have no debt lots of gold bees rising they've got now there's so i think of the second or third biggest agricultural export are in the world with the wheat that they grow in their fertile lound so there are hard hardening up and they're buying gold contrast to the united kingdom that's been selling their gold they sold half their gold under gordon brown. and also sold half their gold it works in one thousand tonnes now so some nations are stacking gold i think the closer they are see the falling empire you know i'm not even trying to say that there's any like this this country's great in that country is bad it's just facts like this is this is then

the same cycle that has happened for thousands of years of the rise and fall of empires there's hundreds of books and fantastic books written about the rise of falls empire and they always do they might not be exactly the same but they often rhyme in what they and how they rise and fall and these are classic signs of of them rising and falling right then look at the stock market russian stock market hitting new all time out of so the clearly there whether the facts on the ground resonating with those hundreds of trillions of dollars of investment will funds are looking at russia and saying no that makes a lot of sense for the us the smart money is going into russia well stock markets are just it's really the wealth creation that you're seeing is more important and look at manufacturing to look at agricultural production and look at things like that in order to determine things of how much the nation is building wealth. right and exactly so we're going to take a little bit of a break and when we come back much more coming your way.

when the make this manufactured sentenced to public will. when the ruling classes protect themselves. with the final merry go round be the one percent. we can all middle of the room sick. i mean real news is. on. the list and. i'm sad

as that is it. so there are those still. in the him mission without a. lot. of the little guy we. don't want out of the modern i don't worry about. some of his. own of the. art of a shuffle stemming with. this i don't.

welcome back to the kaiser report i'm max keyser time now to head over to new york city and talk to misfire stein of planet policy dot com welcome back mitch glad to be here max oriya pretty good now mitch first time we've been talking for a number of years now and tracking quite a said you a slave the role the fed plays and other central banks in the economy and they have threatened over and over again to raise interest rates only to be. contradicted by their own reports and their own words by not raising interest rates and we evolved and said you can't taper a ponzi scheme now it comes at the finally what you've been predicting all along according to the fed and their recent discussions that quantitative easing is not

going to become permanent they will never ever ever be an normalization of rates we have truly entered plan a ponzi misfires on. that's that's exactly right max i mean what we have are a bunch of economic charlatans masquerading as central bankers who get it consistently wrong and people still listen to what they have to say as i said and i've been saying it's mathematically impossible for them to ever raise interest rates you know like mark carney who was at the bank of england came in and said he was going to raise rates about six or seven years ago he's never rate when he came there he's never raised rates temporary emergency lowering of interest rates has now been on the books for ten years we've learned absolutely nothing whatsoever from japan's forty year debacle or thirty five year debacle where their low interest rates didn't stimulate anything it caused economic malaise and the collapse of the asset prices which is what we will see here you know the fed has

the nerve to tell you that we're at full employment but if we look at you know i think we have a chart of the labor participation rate the labor participation rate hasn't been this bad since the one nine hundred seventy s. so what this tells us is you've got ninety ninety to one hundred million people that are out of the workforce so once they're out of the those statistics from the bureau of labor and spin bureau of labor and spin department they just no longer exist so it's not that they're unemployed so the fed keeps coming out and saying oh we're going to raise we're going to raise we're going to raise to boost market spirit and then when they when the stock market drops a couple hundred points they freak out and they come in and they boost markets by saying oh we're going to add more stimulus they you know i think these trades worked for a long time and most of the traders who were in their twenty's just keep trading on momentum valuation doesn't mean anything any longer earnings don't mean anything you have bad earnings numbers you've got bad earnings forecasts you've got mark to

fantasy accounting i think most of the reported numbers that came out they haven't even submitted audited audited accounts yet so you know events. ali the rubber is going to hit the road people are going to realize these valuations are in sane and then markets will come back and become grounded again right ok first plank of ponzi is that central banks are never going to raise rates again and that now it's been codified by the central banks themselves they have said publicly they will never raise rates anymore it's impossible because the global economy is that now in a death spiral and there's really nothing we can do about it let's go to a plank to another posit of plan a ponzi your book is coming true and being caught a five and being legitimized and being hard coded and that is the fact that central banks bought more of gold in twenty eighteen then in nineteen seventy one when they were us off the gold standard they bought six hundred fifty one tons and they're

expected to buy a least six hundred tons more this year misfires time. will look i mean eventually people are going to get tired of the u.s. dollar and as i said in the book and as i've told you and we've discussed repeatedly what's going to happen is interest rates are going to go up by an exotic event now nobody can predict when that's going to happen when an extraordinary event will happen interest rates will go up on their own you know the dollar could collapse i think as we've also said i've also said u.s. dollar gemini is finished because what you've got going on right now when the markets understand and figure out that the united states debt is about two hundred fifty trillion dollars with a t. which is about almost four times global g.d.p. it can never be repaid so when interest rates go higher and they use think about all the bonds that have been issued the incoming revenue streams don't even match what they need to pay on interest on those loans so you can have an insolvent

insolvency of event because the debt service is so enormous but you know you've got a new congress that's coming in. promising wild things like oh more printing more money certainly doesn't matter look it's not different this time folks it's never different this time it's always the same and this will end very badly what we need to do is become fiscally conservative and figure out how to get rid of the debt in under the radar people are talking about a goal to make and close to or add new all time highs against the australian dollar canadian dollar and enter a pathway so it's make a hedge against against all these other currencies in dollar terms that's about to break out to new all time highs now russia and hungary adding to their gold positions quiet quite enormously siding absence of counterparty risk and goals heads against changes in international finance system do you think we're headed to changes to the international finance system where the brentwood after world war two

we have the plaza accord in the eighty's you know occasionally and we do see huge changes is there a big change coming as far as time yeah i think there is a big change coming as i said u.s. dollar germany is going to be finished so what will the new currency be it's going to be you know as i my best guess would be something that's tangible exchangeable i mean if you have a defacto gold or silver or copper or element to it where you can take your paper and exchange it it's good for some kind of. fungible commodity then then it will have value but when you have a paper that's worthless it's problematic but i think the the downside here is you have a lot of countries that are going to start with this let's get rid of currency and compel people to put all their money into depository accounts and then you put it into a depository cow and then what happens is when the banks fail this time or next time

they just sees your money like what happened in cyprus cyprus is the going forward business model for sanctioned deposit confiscation. right they call it a bell and they just outright confiscate money from a bank account and of course they give interest rates cover nine trillion dollars and governments bonds all over the world that number is growing so that negative interest rates are going to trickle down to the retail bank customers as well so just putting your money in the bank means that giving the bank license to take money out of your account to pay this ongoing ponzi scheme doesn't seem to be any you know appetite to put the bankers and jale except maybe over an adult in the prime minister salvini recently said the government should seize control of the central bank of italy's gold supply the third largest sovereign holding in the world what's happening in italy match. italy has been a problem for a long time italy's got four trillion dollars worth of bonds that they can never repay and you know the european central bank has been the buyer of last resort and

all the banks need to be recapitalized in italy so there's a gigantic problem in their banking system with solvent see who is going to lend money to recapitalize those banks absolutely no but it you might have a central bank that does that but is it is it going to end badly yes it will end badly and the people who invested in those bonds are going to lose money that end of the day the central banks have caused the problems the central banks are not the solution the central banks are the problem so salvini might have it right and what's going to happen is when everything goes terribly wrong next time people are going to blame the central banks however the bond or the horses have already run out of the barn so to talk about it now i mean you've just got to be proactive and make sure that your posture and you have a percentage of your portfolio diversified out of dollar some in dollars some in silver some in gold some in precious metals but i think the stock market at these valuations is madness i think property is madness i think bonds are madness because

the valuations are just way too high so when you they say that there is no inflation or inflation is below two percent. c.p.i. is a lie so the way they calculate it is you know it's goal seeking they figure out what the number is they want to get to and they make the numbers fit accordingly so if you look at asset prices even tuition prices the way that they have skyrocketed two thousand percent since the one nine hundred eighty s. real wages have been stagnant people aren't stupid and they realize now like you're seeing is you they show in france you're seeing people are wising up and saying the middle class is gone we've been eviscerated we can't pay our bills we can't afford tuition we can't afford medical care quality medical care so why has this happened and how has it happened and it's all because the central banks created the largest wealth inequality in the history of the planet by these ultra low interest rates so banks borrow for negative interest rates and they lend people predatory interest rates with credit cards at twenty five or thirty percent so people are tired of it

doesn't end well is just the beginning in france brags that trump all of these things are symptoms this is these are symptoms of a rotten system that needs to change so you know after occur after grace collapsed people are trying to speculate who would be the next in europe to collapse the likely candidates rather spain or italy it looks like italy could be the one to collapse in the wake of the greek collapse what it as a thank you. well i've always thought italy or france or germany germany might turn around after they give merkel the boot because she's on her way out germany might just say what look we're not going joint severally liable for all the profit at southern european nations that can never repay their debt we're out and then you could have a euro that's x. germany so i don't know exactly how that will work but the single currency euro is a failure i wouldn't hold any euro's most people have been selling euro's and buying swiss francs but swiss the swiss franc in and of itself is

a problematic currency i mean one of the largest speculators in u.s. dollar stocks on the planet and they're one of the biggest holders of apple so you know i don't think that position is looking very good for them considering that you know it's down substantially from the peak and. about that for a second so on march twenty ninth there is scheduled for. at the moment there is no plan there was ever never a plan and so what's your betting on that. as a money manager a fiduciary what how do you. know how do you manage your accounts ahead of that aside going to be a volatile session i would imagine match oh look i i it's no secret i haven't liked sterling since it was one seventy two the u.s. dollar look at sterling go back to two thousand and eight or seven sterling was trading at two point zero eight to the dollar and it's dropped precipitously it

dropped in two thousand and seven two thousand and eight from two point zero eight down to one forty now we're trading at around one twenty eight i still don't like sterling so the big move in sterling was when the bank of england decided to print money that was the big decline in sterling now they're trying to make believe it's because of bragg's it go back and look at a chart and you'll realize that it happened when they printed all this money they didn't have and bailed out the banks in england that was the problem the problem with bragg's it is to resubmit was a remainer so she was the wrong person to get england out of the. we'll dot it is first i think should be on the kaiser report thanks for having me that's going to do it for this edition of the kaiser in court with me max kaiser and stacey harbor try to catch us on twitter it's kaiser report until next on.

the must lead to a little boy is no keep the slow you force me to do. you still. want. to see the film pretty. good movie did. you. know what. i would sit here with you in terms of what obama has done personally i think he has not done enough i think in syria for example in two thousand and thirteen when

there was a threat and we knew that the us invasion was about to use chemical weapons on a wide scale like he has done in. the obama administration should have responded with force and eliminate the capacity of the cd and to use helicopters and other if forced to trouble but it bombs on people that. came here. in many us states capital punishment is still practiced convicted prisoners can spend years waiting for execution but most of the time. very much in favor the death penalty there are some people because of what they did give. us some. how many more. before we as

a society realize that this is not working and we actually do something about. legally. with it but if you. see a. series of these. if you do that it's only. the league. the headlines in our say that to me is that russia is ready to respond to threats this new hypersonic missile system stressing though it's a purely defensive. reaction to threaten to retaliate by targeting

western capitals with his own new weapons but a confrontational step quite a confrontational speech anyway. since nature of. the democrat led committee is questioning the nature of us after a new report reveals washington's poised to transfer sensitive nuclear technologies to riyadh that has the white house. as a global threat and a statute in florida.