not far from bryant park they had his factory and i made there we made mouth coils very famous by max millen and a lot of other kind of cheap plastic magic tricks until one day i showed up to work and he had disappeared cheap plastic magic tricks is actually a good headline for this episode because the first headline is a tweet the pool of negative yielding debt has risen to a new post twenty seven thousand high of nine point two trillion dollars mind boggling at a time when the global economy is supposedly still recovering this is the market value of bloomberg barclays global aggregate negative debt index as you see negative yielding debt is rising rising rising which suggests that in the real world outside of all the magic that the central banks are. brilliant illusions they're putting forward for the population that the real people behind their curtain the bankers are terrified and they're willing to lose money on lending at

a negative me well up until recently the idea of a negative interest rate was considered a financial all in possibility in economic him possibility it had never been tried for in this tree of economics or finance and ever in the hundreds of years of such things systems of the modern economic reality that we can go back to adam smith and the wealth of nations back to seventeen seventy six actually when that book came out and there's never ever been a try before of a negative interest rate so it's like. they also discovered in the world of physics this past week that they've proven time going backwards right so up until recently that was considered in possibility and now we now we have proof of a quantum physics of going backwards in time this is the same thing as a negative interest rate it's a possibility but yet it's there because it's a fancy way you know effectively of confiscation so banks are imploding their. dying there's bees there instead of allowing them to die as they would have

or should have years ago they've been supported with cheaper rates and now they still are not. voiding collapse so they have to just do wells confiscation which is a mega venture a strain that's coming to your bank account soon it's a soft bell a soft bell innocent effectively yes we've warned people that negative rates are coming in that is a soft balance but they original luzhin i believe happened to you just mentioned that negative as interest rates were considered and possibility that's because every single economic theory and great economists throughout history and you know an economic ideologies were invented before nine hundred seventy one all the austrian school keynesianism all this stuff is actually invented and thought of and theories were proposed prior to one nine hundred seventy one which was the greatest magic trick of all time was when we pulled you know it was them pulling the rabbit out of the hat is like everybody was like ah that for the first time in history

there's nothing backing in there in seventy one there was a bold experiment to try something that had never been done before either that is to have every single currency in the world backed by other money every turn she was backed by other fee out money there was no gold the gold those removed entirely those no currency in the world backed by anything that was the first time ever in history we've had a global economy without any currency of any economy that's backed by anything it's all backed by each other it's called infinite regress so it's just one thing referring to another thing referring to another thing referring to another thing and that's controlled by the bank of international settlements and their world central banks who collude they're involved in a massive conspiracy to pretend as if the banks are collapsing but the banks are collapsing and we have definitive proof of that with the nine point two or nine point three trillion and growing and negative interest rates that's proof that the banks the central banks in every major. whether j.p.

morgan deutsche bank b m p any major bank in the world technically is insolvent why a factor of built hundreds of billions are they technically insolvent because the fact is there's nothing underlying anything it's all one great big magic act and i mean i think what it is is the magic act come on wrong so i know you've done magic acts in times square so i want to magic acts starts to go wrong how do you distract the audience from seeing that you're a quarter just slipped on your sleep like you have to come up with something even bigger to distract them from the failure that failure was part of your magic act in a magic act there is a failure because there's always a way to mr recht right there miss it's infinite mr action and david copper will field made the statue of liberty disappear through mr action the right that mean the statue of liberty did not move but he the illusion was through mr action that it did move and there's a video right now of this young chinese girl who does the famous cup some balls or

chain and she's really done it in a modern way and it's all mr action and it's because she's getting millions of views so that same trick spent fooling people for thousands of years and through mr action but in the world of banking if we know that when in two thousand and eight when it was time to sell some of the bonds our on the books of these banks as a way to pay off these debts we know that the value of these bonds on the market was not one hundred cents on the dollar like the banks are telling us but actually closer to one or two cents on the dollar and that's how we know that this is that the insolvent because there's no about there's no market for these but the bonds are the unsellable if you know if i can say that i own for example all the brooklyn bridge and i and i sell a bond against the brooklyn bridge and i sell a billion dollar multibillion dollar bond against the brooklyn bridge well actually somebody's going to come when they say ok we'll deliver the brooklyn bridge and i say well i can enter on the deed just like in the two thousand. subprime crisis

there were no deeds for the houses that goldman sachs packaged as collateralized mortgage obligations and then sold into the pension market in the wholesale derivatives market because they didn't have the d. they were just making stuff up pulling rabbits out of their hat and selling that as a yielding security to pension funds but there's nothing there all of this mr action and infinite mr action as you refer to it is that they need you to believe that the dollar is good as gold and therefore the global fiat's system and we have the central banks now buying their own debt and japan the japanese government owns something like forty two percent of their own debt the japanese central bank owns forty two percent of the government there so they're buying their own debt to keep you the citizen thinking that everything is ok and one of the things about our participation as you know ordinary in the bottom ninety nine point nine percent of the population is this notion of meritocracy that it's all free market and that you know jamie dimon is a billionaire because he's a hard worker and

a clever guy and exceptionally clever and he uniquely is not the free money from the fed giving him you know behind the curtain of the magic act it's his unique cleverness and brilliance and leadership qualities and the same thing it's reminds me with this huge story going on in america of all these elite colleges if you're smart enough it's you know you can get into harvard or yale or duke you know it's you know it's fair competition this is a way for you your ordinary mary's and the clintons and the bushes like it's all level playing field right and what we found is that in fact there are side doors almost everybody in america has to go through the front door of a university this is what is called front door side or a back door or the front door is for the ordinary joe you have to take your s a t's if the take your a c t's if they take all these standardized tests to show that you're worth getting into duke but. the very very wealthy the super wealthy are

allowed the backdoor and it's considered legal if they give ten million dollars to duke to build a library twenty million dollars then it's natural that their children can go to duke university but we now have a situation where all that time that all these people are getting you know. telling their kids you have to study that to study they have to take extra curricular activities if they compete you have to compete and there's been an illusion this whole time for the last twenty years or people are racking up students out of over one trillion in debt outstanding that is non dischargeable by the way that they have it's been a fake competition there was no competition there's been a side door available only if you have a couple hundred thousand per child to bribe somebody in how does this relate to money and central bank policy of creating infinite quantities of money to keep sake banks of float because they were using as part of their bribes to get their kids into these schools shares of stock so there's a lot of value of course facebook shares and other shares and these shares have

been pumped up by quantitative easing and stock repurchases that were financed by quantitative easing and money printing by the banks so it's a direct correlation if you were to stop the money printing the fake family printing to keep insolvent banks from having to declare bankruptcy it would therefore remove the wampum the funny money the bribe money the fake all this money is being used to use college admissions scandal but i want to say that this is also that infinite mr action you talked about is there's a huge press conference f.b.i. perk walking all these celebrities because to the ordinary bottom ninety nine point nine percent they seem like super powerful people when they're not super powerful they had to use a side door they couldn't even afford to use the back door as twenty five million dollars that the department of justice is saying this is a huge scandal that we've broken but in fact the back door is allowed to stay open right now a lot of people when we see this with millennial voters wanting people like see in

office is that you know there's an there's a rage against the inequality and the rigged machine people are starting to not believe the magician's up on stage so they have to start perp walk in some people and that's going to be those if you're using a side door if you're rich but not. like at least worth five billion ten billion dollars you're going you might end up being perp walks you ok on another side story here is that the idea that the banking crimes it's all a victimless crime doesn't matter that all these banks like j.p. morgan have had to pay hundreds of billions of dollars in fines for a criminal activity that they should have gone to jail for because there were no victims well what the parents of these students are saying is that well you never put jamie diamond in jail you never put lloyd blankfein in jail who you know put wells fargo in jail a bank of america and joe wright there's no there's obviously no law in america if you you pay five will pay the fine just like the banks pay the fine how can you dare now accuse us of committing

a crime and not apply the same standard to all these white collar crooks on wall street right so it's not just about the underprivileged saying there's a two tier society and two tier law system i know the younger the poor and in america right now the original america are saying there's that why should we be as lawless as the bankers but that's what the out warrant this is why we're in the situation we are now past that warning that if you have corrupt people at top it trickles down the entire economy becomes corrupt everybody is going to bribe to get ahead. right and that their way they are around it is to introduce sound money they have to have sound money have to have gold as a coin as your unit of account as your store of value as your medium of exchange or if you allow one group of people to print infinite quantities of money and then you to do the cantillon effects able to just buy. you know there's a hamptons rental this summer for a one point five million dollars just for the summer rental right that that person

that money is just printed out of somebody's bank account it doesn't they didn't come out of the economy i mean they are going to take a break we'll be right back after this don't go away. and say i'm just going to take. a minute and then i'm going to be who committed

to the six. zero officer. who had to get up. to serve begins a. series on the sounds of. june. which to do away from the officer. of his group. the obvious or did they kind of lunge for the web in one smiths and then when it happened on trace one as i didn't i never saw any contact with. any kind of went back to where they were back here there again fifteen feet apart at this point and that's when the officer his gun and he.

was. that yours. is your second. welcome back to the kaiser in part i'm max kaiser time now to turn to karl denninger of market ticker dot org if you're looking for this on the web it's market hyphen tucker dot org carl welcome back thank you max you recently wrote

that it won't be a repeat of two thousand and eight elaborate for us what the next crash will be like it sounds like it might be worse karl much worse debt levels are higher income has not advanced in even nominal terms by any meaningful amount. and so you have all this malinvestment that has been fueled by the federal reserve and the federal government's policies all of which by the way is congress's fault because congress is the one that enables this kind of nonsense to go on it's not the feds and you know their own internal saying and do when the bill comes due it's going to be absolutely unpayable we are looking at sometime in the next four or six years medicare exposing the entirety of their underfunded status to the federal budget in the form of deficit and debt that is a proximately a seventy five percent underfunding so you're going to have roughly. eight

hundred billion will be a trillion by the time it gets there a year that's going to just magically instantaneously appear in the deficit numbers let's look at the medicare a second i want to focus on something you said there about mal investments and i think this is a point that needs to be talked about a little bit in other words all this fee at money that's being pumped into the system to camp these insolvent banks alive it has some corollary effects it has some ancillary effects i would point to for example this recent college admissions scandal involving some hollywood celebrities where they're throwing a lot around millions of dollars to get their kids into school all and they're using in some cases inflated stock price stock shares that were inflated due to stock buybacks that was an amount vestment and another mal investment and the corruption just kind of a seeps into the economy as a hall people have been saying for years well why should we care about these banks

and their and their bailouts and all the crimes they commit because it's a victimless crime but it's and has a very insidious effect on the society carl your thoughts you look at all of these so-called you know mavens of the new world to steal something from from jim cramer back or forward two thousand blow up they're all extractions in extortion schemes. you know take for example air b.n. b. lift it firms like them the company that allegedly has all its values create all value takes no risk and so it gets a cut off the top the individual driver that has a car that wants to drive for one of these organizations he gets told what he has to charge what kind of couriers to have what kind of condition it has to be in and he takes all of the risk and he gets a he has none of the entrepreneurial reward for him gauging any activity but what you're describing there i'm trying to think of starkly yeah one small group i pay

paul with access to on. i'm have funds taking no risks and then you have a huge proportion of the society taking all the rest and getting peasant like a wage is wait a minute that sounds like feudalism it sure does and you know it sounds an awful lot like what happened just before the housing blowup too right we had all these people that thought they were getting the the american dream we're going to be just wonderful we're going to go out we're going to refinance four five six times will use the money to go to cannes cood and you know whatever. hoops the spigot gets turned off and the bank keeps all the money in that they stole through these fraudulent schemes selling all these bonds off everything else and the person who took all the risk gets thrown out of their house the fed has indicated in the event of another financial emergency. they may consider negative interest rates and isn't this just another banking trick to keep the ponzi scheme alive karl of course

here's the reality you can print dollars with their credit or physical pieces of paper you can't print value so if when push comes to shove do you know the federal reserve says well you know we're going to do this we're going to do that and you need to go see the doctor because you have a thorn in your foot and the doctor says well you know what i'm not going to take that because the minute i take that it gets discounted by the federal reserve by ten percent because they have a negative interest rate. oh what else you got and your answer is nothing and he says i'm have a nice day having to go and see hundred other crass to sell is it fair to say that the two thousand and financial crisis that ever stopped and never ended we just had a big multi-trillion dollar band-aid put on to a very corrupt banking system that and but the pos and the loses and the disease is coming out again so presumably they won't try me negative interest rates are a way to go confiscate while directly from people's bank accounts it's not even

trying to hide it behind some policy initiative that they've created a person economic theory and some school of economics is just outright confiscation karo far as i'm concerned if somebody you know puts a gun in my face and says give me all your money. i probably will because they've got a gun in my face but if they tell me they're going to do it before they pull the gun in most states in this country it's perfectly legal to shoot them first because they've declared the intent to commit armed robbery armed robbery is a serious felony you have the right to defend yourself against that so if the federal reserve was to do something like this i don't know what i believe the correct response would be the seven hundred seventy five just like concord you know if the american public. grows a pair then you know somewhere between us around thirty million of us then we could go four times we solve that problem but i don't see that happening you're talking about a potential some war which. i think given the high of. political

rhetoric and and you know it seems that there is something a certain three song is in the air first sure let me let me ask you about this recent comment by liz about warren she has an idea to break up the tech giants. facebook briefly banning her for posting this idea on her paying and ok so let's myth warren. he's brought up the monopoly card. karl what do you think well she's right but she's wrong. there is there is a monopoly problem there's there's been a series of articles written about the anniversary of the internet and some of the people who are founders that originally designed the protocol have

lamented the wonderful free open internet that we had in the one nine hundred ninety s. in the late one nine hundred eighty s. and you know it's all gone away because of these wonderful tech giants. in some ways even got all simers or is waxing nostalgic for something that never existed. the real yeah the real problem axis is the data theft this goes on in the collection and how easy it's gotten to amass these huge amounts of data and then use it to screw people and i don't think you can solve this simply breaking up companies you have to put something in g.d.p. ours an attempt to go there at the european union level didn't go anywhere near far enough i get that it's tough to throw elizabeth warren a lifeline because she is not somebody they would want to give a lot of oxygen because. overall the policies seem completely divorced

from let's say market realities and however the problem of monopolization of the tech sector why there is apple computer. you know facebook alphabets last google it seems it seems you know palpable it seems real you know there there are there's a pricing problem going on i mean look at we've talked about amazon karl i mean amazon certainly is becoming a predatory monopolist now has on its been a predatory monopolist for a long time are you i will remind everybody that one of the first things they did when they were just a bookseller was they spammed my customer base. you know i made a lot of noise about the fact that i caught them at it and they tried to go oh no we didn't do what you spammed me personally guys i mean come on. so i mean it's not like they're you know this is a new thing. in the games he's played with this distribution centers and gaming the

tax code and things like that this is what monopolists do but breaking up firms by itself without addressing the underlying issue which use the collection coalition and sale of personal information without. consent without informed consent because you can't possibly give informed consent you look at what happened with twenty three and me for example you send in your d.n.a. to get a some kind of analysis and then the firm partners with glaxo smith kline a pharmaceutical company. how could you have possibly given consent in advance to that combination but you can't the companies are acting in ways that would suggest that they have no competition now there are you know. a.o.l. or facebook i'm sorry facebook is. how i'm dating myself by referring to a.o.l.

there for a second. facebook is. they're censoring people you know with a political agenda it would appear because there's no there's no competition so i mean that's kind of where the monopoly situation that's how others with one would seem to have a point there we need some some competition and i think back to teddy roosevelt you know the trust buster and you know there was a need for a trust busting at that time and i would posit you know i'm curious what you think about that and you know you get cheap prices a lot of people say well the cheap prices are cheap and we want cheap prices there we let this one out please continue but it seems like a sometimes you've got to break up the monopolies carl a lot does not say that price injury has to happen in a way that you can quantify in order for the conduct to be a legal fifteen united states code is very clear any answer to monopolise restrain trade. in any enters in any any area of interstate commerce or international commerce is a felony it's not a civil first it's

a criminal offense and there's this interpretation floating around that people have that well let me unless you can prove it makes prices go up then it doesn't count that's not what the law says and so this was warren is correct in the. the act of monopolization is illegal the attempt is illegal it doesn't matter whether you succeed it doesn't matter whether they can see it well but you know amazon has the cheapest price all of you know want to detergent this week it doesn't make a difference they are suggesting that simply apply the law and they all have to have you over for the segment karl isn't getting interesting thanks for being on the kaiser report thanks max all right that's going to do it for this edition of the kaiser apart with me max kaiser and stacy herbert want to thank our desk carl data that's over there mike market hyphen ticker dot org if you want to catch us on twitter it's kaiser report so i stopped by all.

during the great depression which i'm old enough to remember there was most of my family were employees working class and it wasn't it was bed you know much worse objective listen today but there was an expectation of the things were going to get better. there was a real sense of hopefulness there isn't today today's america was shaped by the ten principles democracy attack solo down engineer elections manufacture consent another principle holds according to no on. one set of rules for the rich opposite several from. that's what happens when you put power into the hands of

a narrow sector of will switch will is dedicated to increasing power for chills just as you'd expect one of the most influential intellectuals of our time speaks about the modern civilization of america. everyone wondered what i was going to do next the multiple different clubs on one hand it is logical to sit in the home fields where everything is familiar on the other i wanted a new challenge and the fresh perspective i'm used to surprising people and us old or not so you think. i'm going to talk about football not the or else you think i was going to do. by the way ways of the flying here. you'll find all. kids crazy

oh. we have been a real gunshots to begin murders controls all life. becomes or in the last communities young people are deciding if they want to be not like their parents not like ten liberals. the blacks are always drug school again you always have problems but you are going to focus a lot it's the most ubiquitous known out there most police departments use it almost overstayers in the school tell them they could get their hands on a gun was in twenty four hours. through it teach nice kids of both racism about police brutality taking pride in them they are these kids are a part of all history.

varying priorities was facebook to church but to swift to secretly silence a calling so political views it deems all the savory. if i put certain stories about certain political issues i am shadow. so that's what my concern is when they continue to ban these kinds of things can ban this kind of stuff that only going to shadow ban. coming up on the program the government called occupation of its offices in the u.s. position members for control of buildings in washington and new york.