stars or this is the kaiser report never forget to watch the kaiser before you need a reminder just put one of these on your head walk around and you're like oh i am i doing this oh i got to watch the kaiser report you know it works trust me right stacy i might say i see your future in your future is watching kaiser report in fact the headline reads good fortunes the us psychic industry has grown fifty two percent since two thousand and five to reach two point two billion dollars in revenue last year thanks to wider acceptance of the supernatural report finds you know i think that's a good metaphor analogy whatever for the u.s. economy whereby you know they all look for this fed speak of what the fed says and and what my future looks like oh i get to buy another two hundred fifty million dollars apartment in new york city thank you thank you for cutting rates this year well you know given a story called precedent for this after world war one the carnage was so bad and there was such a horrific murders and trenches gas warfare and that we had

a rise in american around the world of spiritual ism so people were trying to make contact with their dead grella to they couldn't justify their means they couldn't see you know what the point of all this horrific murder and war was about and you have this incredible rise of spiritual ism and it's very well documented and houdini went after the spiritualists a very ancient story so this is kind of echoing that you have a two thousand and eight crisis which is like a complete devastation of the world economy wiping out millions of people and the devastation is horrific and no it's providing an adequate explanation they don't understand why did you steal our money why the central banks are gods why am i broke so they're turning to psychics or spiritualists and because of the devastation so it's the human nature tries to fill in the gaps psyche they try to make sense of trauma and they have world war one. they all said the spanish flu the

bird flu that went around the world and killed many millions of people so they were trying to make to understand what had happened to them and i think you have that with turning to conspiracy theories as well mainstream conspiracy theories fox news and m s n b c each have their own set of conspiracy theories and you watch it if if you yourself are not traumatized it's crazy to watch it seems absurd but you see that it does provide some sort of comfort to those who are watching it all the way as they want to be watching it so excessively but they are comforted now i want to look at this headline about this sort of money printing that has followed and the you know the the bankers also you know they they're sort of turning to spiritual ism is turning to this all of the central banks who grant them all this good fortune right it's a tweet thread that is we're following the whole thing but we'll go over some of these tweets in this long tweet thread from. and he says some thoughts on silicon

valley's and again we have long said the biggest risk to the bull market is an i.p.o. that is now upon us the first tweet from that goes in two thousand and fifteen venture capitalist bill gurley predicted dead unicorns and that all these private valuations are fake now he has reconsidered his view you have to adjust the reality and play the game on the field there are no more disbelievers except for one guy chain mouth so bill gurley is a memo park he's in but he himself had said like he was going back in twenty fifteen that all these unicorns are going to be dead but now all these unicorns are worth even more and they're all about to go public live and the fact that there are only believers and just one disbeliever the theory is that therefore these are all going to die ok so the private companies that have got a lot of v.c. venture capital funding are ready to go public this year i saw the list they're all going out of forty fifty sixty seventy billion dollars valuation. and so the

prediction here is that it will be the end of this cycle you're going to have a like two thousand and one style crash in nasdaq due to the fact that there's nothing to support the valuations of these companies and very quickly will crash that while this venture capital himself out on market was giving these huge valuations to companies that could never be supported another going to go public so he's assuming that they will have a bad time in the after market in the secondary market that's assuming that the central banks don't continue what they're doing right now that is to say print trillions and trillions of dollars to keep dead unicorns alive to keep zombie banks alive so i don't know why they would stop at this moment i mean why now why why would they continue i don't i don't understand why he's making that thesis not sure well the thesis is like just like say in the bear market when the last bear capitulation says that's it i'm not going to be shorting this market anymore i'm

not going to not buy in fact i've decided to go long after dissing gold say for twenty years now i'm going to go along usually that's the time to start selling when the last bear capitulates so what he's saying is like the last bear capitulated on these these unicorn silicon valley v.c. backed the last bear capitulation there's only one guy left just one so once that guy capitulates then there are no more bears there's nobody to short this thing there's nobody to doubt it and there's nobody to bet against that to take the other side i get that yeah but i also cognizant of a world in which there are no restraints whatsoever on multi-trillion dollar quantitative easing money printing schemes and the only thing i think that will take the wind out of that what i see and i see it happening in the plenty of markets the play be a market is showing some. of collapsing due to the inability to negatively short

sell the play be a market that could be the beginning of a massive unwind i'm not sure this is a this is going to talk about venture capital funds this is tying in with the money printing in the wall street and you know the fed keeps on saying that they need to print more money because there's nothing there's no money out there there's no money we need to get people to we need to cut interest rates in order to get people to invest what i'm going to show here is that there's billions of dollars on heard of amounts even for silicon valley they cannot they have too much money they can't possibly even spend it and they're saying they have more money than they possibly need and yet the fed is saying we need to print more because it's not circulating right here they talk about it four to twelve and thirteen he says because of q.e. capital was abundant but now had nowhere to go and be productive because the world was still in a downturn the scarce asset was growth and so have created a bubble in the riskiest long duration assets venture backed companies as lesson

puts it technology was a bubble of last resort soaring tech valuations are really more a commentary on the plummeting value of capital than the value of tech companies themselves this is now changing money is becoming scarcer and the cost of capital is rising you know i'll go over some of the fall is going to pop the dot com bubble was that it was a realization that band with cost were not plummeting at the rate that it was assumed at the time of it and that bandwidth was proliferating at the rate that was assumed at the time there was an extrapolation of bandwidth that growing at forty percent a month and so this was going to drive ubiquity in the internet and then suddenly somebody came along and said you know what actually it's not growing anywhere near that rate and so every valuation crashed ok but that was tied to an actual fundamental plank of that industry band with here this is tied to something that is unprecedented in modern times have to go back to medieval times to find any any of

our log and that is unchecked. money printing to the tune of trillions of dollars and there's nothing to stop it there's nothing to stop it and the last dot com bubble that popped in two thousand and two thousand and one that was actually building out the infrastructure a lot of those billions of dollars that blew up actually went to laying cables all over the world this time around almost all of these unicorns have all of that risk of building their infrastructure on to a commie workers who are building these so but however the vcs again i mentioned that there's so much free money just for the billionaire class here's some of the numbers so he says vcs are raising ever larger funds at an increasing pace despite a lack of viable opportunities sequoyah raised eight billion dollars largest ever by a u.s. venture firm it's easier to raise money than any time i have been in business said david rubenstein of sequoia does not bode well for future returns and then he also

skips forward to there has been a ten fold increase in v.c. stage investment by mutual funds and just three years with more than two hundred fifty funds now holding positions in private tech companies so of course this is one of the theories is that like everybody who wants to be invested is already invested more than you like has ever been needed there is an eight billion dollars worth of of of investment opportunity we saw that with i.c.a.o. is people wanted to invest they had some money from their white paper and there was nothing actually there so this is what he's seeming to suggest is that a lot of these v c's are raising money but there are no opportunities to invest right well i have the same argument about the dow jones when it was trading at around nineteen thousand on the dow jones that the last bear had capitulated so therefore using contrarian thinking we must believe that the dow jones has in fact

topped out well now it's pushing twenty six thousand right so that i understand the country an art. mynheer but given the broader context of unchecked unlimited money printing by the trillions there's nothing to suggest that the bubble is going to be popped up this time a lot of those sort of contrary and bats in the last bear has capitulated the last bull is capitulated and blah blah blah and you can never have negative interest rates that was before the cult of the central banks so central banks we don't know how much of the shares they're buying we know in japan openly the swiss national bank the bank of japan are buying up all sorts of equities and bonds and stuff but i also want to point out the other problem for the u.s. he's pointing out is that saudi arabia now has a bad reputation not only did they chop up this guy melted down and cook you know that jamal khashoggi the journalist for the washington post but and now it is looking like they had a whole hit squad killing all sorts of people you know americans you know the media doesn't care about that m s n b c maybe doesn't care so much about that but because

it's not you know and we so-called enemy nation venezuela china russia but saudi arabia is the single largest funding source for u.s. startups funneling at least fifteen billion dollars since mid twenty's sixteen s kara swisher said if you remove the saudi it's eleven billion since two thousand versus saudi arabia's fifteen billion right and if bad reputation were trading on the new york stock exchange it would be them highest capitalized stock on any exchange anywhere in the world bad reputation doesn't. matter what is so ever on people's money flows of anything it helps and the saudis they could just bite the bullet and take around co public that's a trillion in cash right there so again there's no a limit to the free unlimited trillions being printed if you have the right friends in the central banks and finally quickly this last tweet here to show you the

juxtaposition between silicon valley the most privileged of america versus west region. at the least privilege of america oh my god west virginia lawmakers have sided with dow chemical and agreed not to implement stricter water standards recommended by the department of environmental protection why look at their reasoning they argue that the e.p.a. encourages states to incorporate state specific science and that because west virginians are heavier their bodies can handle more pollutants and that because they drink less water than the average american they are less exposed to the pollutants so this is what it's like to be at the end of that toxic river a free money that starts out goes to silicon valley for free they get to invest in all these uniforms and you get fed toxins because you're fat go along body bags all right well we're going to take a break when we come back much more. sound

. did. happen. back to where they were back here again. in terms of mr why go home he's played a useful role but i think that the mistake he's made thus far has not announced that he would not stand for president so to say to the venezuelan people in the

international community i've done my role which i believe is a constitutional one as the interim president but don't look for me to run i think if he were to do that the situation in venezuela be perceived as less than one of the united states school. desperate for a single purpose. of a super. training very young. eight months of intensive school. reps. and they save lives.

welcome back to the kaiser report imax guys are time now to turn to michael pence of pentode port dot com michael welcome back thanks for having me back on max well all right let's get into it since we spoke a month or two ago michael the fed has continued to rock however there are now claiming that q a is permanent and that in fact negative interest rates may be next year thoughts michael pent up. well you know i find it amazing max that you know you have to come on shows like yours that actually tell the truth and sarah is that the fed has admitted that they have her minutely monetized a little over a three trillion that's what she trillion dollars worth of consenting of their debt of the money they print x. neela ok out of nothing and that that was something i remember mr fischer of the

dallas federal reserve once said that the federal reserve of the united states would never go down the road of a banana republic and rick hundreds of billions or even a trillion of its own units of currency but we just printed three point seven trillion dollars coming out of the great recession. and we're holding dealer to drain and maybe about six or seven hundred billion dollars of that there's going to announce very quickly very soon here exactly the final size of its balance sheet but let me make this clear the federal reserve of the united states is now acting like a banana republic has printed wellmost words trillion dollars and will currently monetize over three trillion dollars oh it's assets all right when quantitative easing was first announced a lot of people said mike us that is debt monetization and isn't that what banana

republics do and the answer was no because it's temporary and big a while we can start reversing this at any time ben bernanke has said we could reverse and fifteen minutes so here we are several years down the road and they've just announced that it's permanent it's not temporary and every time they try to reverse it they can't because you can never taper a ponzi scheme so. even if we are to we're not a banana republic because everybody else is doing the same damn thing i mean you know maybe what a banana republic did its currency collapse because it was a world's reserve currency so let me be the heir to the export prices go through the roof the currency collapse you know hyperinflation but everybody's doing the same thing the e.c.b. is doing the same thing the bank job is doing the same thing so maybe we're not going to have an isolated hyperinflation like we had in say ya zimbabwe but maybe

we're all going to look like rome. rome is the world's reserve currency they have a thousand and he will percent next year the fed prints money out of nothing and gives banks something called bed credit which is actually. just good is cherish its base money but by saying to the central to your commercial banks by the central bank saying to the commercial banks. our three trillion dollars worth of base money and permanently monetizing what they've said is we have no ability to take those ha high powered reserves that high powered money out of the system which is a fractional reserve system genndy multiply by ten times or more especially when you figure x. factor into the sweeps of the men deposits into long term deposits so what i'm saying is is that inflation could run intractable and the fed is

basically a minute that we can do nothing about it we have no ability now to take those reserves out of the system and we have no ability to raise interest rates any longer because we we've given up that right to that's how they raise interest rates you know they sell assets grey money out of the money market and interest rates rise they don't have that ability they're really diminished by three trillion dollars they can't take at money at any longer and that also means that they have less ability or willingness or desire to fight the asset bubbles the massive asset bubbles in equities and in fixing them that they have created so good by middle class right now during the two thousand and eight financial crisis eric holder the attorney general barack obama famously came out and said look these big banks we can't prosecute them they're too big to fail and we have to look the other way when they're committing fraud and by doing so he opened the gateway to having that

double standard of law apply. to the central banks the way you're describing is a situation where the central banks are now too big to fail there's no economic law that applies to them the gravity doesn't apply to them they're simply printing money out in fun item in what could i think be characterized as a ponzi scheme but to your point i think is is the main point is that the middle class gets it vests aerated right and then you get people like you see coming on the scene and exposing things like modern mater modern monetary theory you know that's what the central bank of this yet of the united states of america is doing they're actually doing this modern monetary very random they are printing money out of nothing buying assets and they're kids ling those assets their kids singles as it is it never existed. ok that's

a form of modern monetary theory by the way max if they couldn't reverse what they've done in an emergency you know after two thousand and eight if they were able were able to really even choose the excess reserves at all basically on the mortgages will you be able to do it because don't forget central banks around the world are at zero percent interest rates they have no room to lower interest rates so the next downturn which by the way we're pretty much in the middle of right now if you look at earnings per share on the s. and p. five hundred negative look around the world is really no growth anywhere in this recession that occurs what's going to happen forget about your skinflints ritually and we're going to be in multiple trillions of dollars to the federal reserve balance sheet and guess what everybody is you know where it ends it is intensely leaving all those reserves in the system flooding the baton system making the

banking system healthy blowing up assets be ultra rich and with no possibility of taking that away or we're just going to continually monetize debt exponentially as time goes by and as each recession waxes we're pernicious because. well we have a new concept in the mix of that would be negative interest rates so there's nine point three trillion worth of bonds that are sovereign bonds or the kind of gori of negative interest rates the thinking and that they money on deposit at the bank will not yield you point zero zero one percent but actually give you a negative yield so it just becomes a confiscation scheme that is the cessna t. to keep the banks from having to implode which the government and the central banks will say we can't possibly let happen so you're going to have to tie you're going to have to give part of your money to the banks to keep them afloat. how is that

different than in medieval days when we had to give a tie have to the king michael so they've tried to surrender you don't such as that were we might be going to make it a race here in the united states they have negative rates right now negative deposit rates so the excess reserves that are held by banks in europe they lose money by holding them at the european central bank and the idea is hank don't keep your reserves this is what the e.c.b. is saying to the merchant banks in europe don't you dare keep your excess reserves that we're created on our balance sheet because you're going to be losing that money you better get out there and lend it so if you lend it you don't lose any money but if you keep it there you lose money but guess what banks in your aren't lending money really willy nilly because we are in a condition or debt saturation across the entire planet so it's a very sure the e.c.b. rather than make a loan and have it go default that you have to go completely default and then lose

all my capital. so you know that there is no free market anymore max and there is no easy solution other than having the currency and the debt and the jubilee and reset everything let's start over all over again that's the only hope we have left before we enter into a condition where i call global intractable inflation in a program basis case a global stagflation that's was coming in the next couple of years right and to do a global race and of course you would need something to stop a against and the name that comes up of course all the time would be gold and i want to talk about gold and palladium here for a moment so give us your take on gold and also play to him because palladium is a record record high for palladium you know if you look at precious metals i'm a little dumbfounded in the fact that they are soaring right now i mean they are doing very well compared to what they're doing in two thousand and fifteen but max when you have global central banks don't forget he's seen be threatened to raise

interest rates in the summer a year ago now where are. they going to another third round of t l g r o ok so are targeted long term refinancing operation now the bank of japan which owns almost fifty percent of their it's higher equity market never even threatened to be able to raise interest rates or even stop. so you know if you look if you live in a world where nominal interest rates are around zero or even below in most major center about central banks and after you are in just for insulation they are negative reply only negative and will be coming even more negative over time then how could you not buy gold physical gold take it in your possession in least ten percent of your portfolio at this point should be in physical metal and then you should buy some gold stocks ices some silver some play the i'm. and.

i'm sure you've read the i here is so we got about forty seconds left but i do want to get your reaction to a thought that's being posed is that palladium is getting hit with a massive short squeeze from people taking physical delivery and something i haven't seen in gold and silver where they've been settling in paper palladium could be the first in a domino of precious metals to face actual comix physical delivery calls your thoughts like i've been saying three years you must take physical possession of your precious metals that's right not your kidneys not your gold all right thanks so much bring on the cause report michael pent up. thank you guys all right that's going to do it for this edition of the kaiser report was made max kaiser and stacey i would like to thank our guest michael pentel of pentago port dot com if you want to read just on twitter it's kaiser report by l. .

the tense situation in venezuela is still all over the news the problem in venezuela is not that socialism has been poorly implemented but that socialism has been great only implement inside venezuela things look different we're going to announce sanctions against petroleum to venezuela so see you don't. have a son of a moment. that. battle scene on the back of the mad plane henry kissinger to tell him that it would not be tolerated that system could take hold and therefore the policy would be to make. the chilean economy scream so once and make the economy of venezuela screed.

the great tragic comedy known as russia gate is slowly becoming part of history the resistance continues to resist but clearly the president has the wind at its back now is a time for a great awakening what are the lessons to be learned and can the liberal media cover from this fiasco. but.

one of the richest companies certainly and now it's one of the poorest countries of the was company not country did a slip of the tongue exposed president real thoughts on venezuela way up the evidence. ship hijacked by migrants who were pulled from the mediterranean arrives in malta more than one hundred people are on board including children. they are not castaways they are pirates. and an online campaign demands a u.s. drugmaker return billions of dollars.