oh i am max keiser this is the kaiser report truly electrifying experience right stacy well we do have quite an electrifying experience with this episode because i have a lot of charts and they're all from bank of america michael hartnett so. the headline is coming from zero hedge hitchhiker's guide to the investment universe twenty stunning market statistics ten years after central banks launched the greatest monetary experiment in history pushing rates to zero or lower in an attempt to reflate away in the unsustainable debt load while purchasing twelve trillion dollars in securities to prop up risky assets we are back where we started with deflation once again emerging as the biggest threat to the world over ten

trillion dollars and sovereign bonds yielding below zero percent and after a disastrous attempt at renormalizing monetary policy the market is convinced the fed will cut rates and the coming months so with this in this environment bank of america's michael hartnett has published its latest hitchhiker's guide to the investment universe and ok. you want to stimulate the economy do you say. increase wages or b you increase the price of fine art being sold at sotheby's that's the question the federal reserve bank and all central banks around the world choose b. they want to stimulate the economy by jacking up the price of fine art and other collectibles and other assets that are held by an extraordinarily small portion of the world's population who haven't worked in generations their raunchy days they

are the neil feudal class they are the club talkers see but the fed in the central banks around the world don't seem to understand either the economy works or b. that if they keep kowtow ing to a very small group of larcenous pts they're going to get torched. well part of the issue is that governments themselves have abdicated any responsibility or concern for their populations and they've basically delegated. authority over the economy to the central bank and the central bank can only implement monetary policy and monetary policy can only be executed through their member banks so that's why all the very wealthy continue to get very wealthy or the central bank can't send money to the ordinary person like the likes of say steve

king and his policy of quantitative easing for the people that has to be down through fiscal policy remember when george w. bush sent out checks to every american like six hundred bucks. which i never got mine by that i don't mind. my money anyway that reagan was long before george w. bush but so that's why it's only going to the top and then meantime the bottom is not is basically relative to the top which is taking away taking off and you know rising further and further away from zero zero zero zero zero of a comma yeah i'm going to talk about the debt load that is then piling up because the bottom is not able to basically participate in the economy and will come to your comment after at least one chart because i promise people charts one hundred seventy five trillion dollars current value of global financial assets which is two times the size of the global g.d.p. wall street is still too big to fail the total value of global stocks and bonds

outstanding has jumped by eight fold since one thousand nine hundred from twenty three chilean to one hundred seventy five trillion today global asset values are two times the size of the global economy global asset values fell in twenty eighteen from one hundred eighty chile into a hundred and seventy five chilean so everything kind of starts in one nine hundred ninety and you see the debt rise from twenty three. into one hundred and seventy five trillion with your comment well you know they say you say that the governments of abdicated their role in managing the economy they outsource it to the fed and they only see things in terms of them on a tourist lens so there's not much they can do however i would say that they could rot raise the cost of committing fraud so if you know that the banks are committing fraud and we know that j.p. morgan and all these other major banks have paid hundreds of billions of dollars of wells fargo defrauding customers on

a wholesale level they can raise the cost of committing fraud by raising interest rates so that it's it's not you're not incentivizing fraud it would also would not incentivize the perpetual. transfusions of this free money to keep the zombie banks and zombie corporations alive so the central banks do have in their tool box the ability to rectify these economic maladies even within the fact that the governments have abdicated utterly in no longer see themselves in that role the central banks do have ways to rectify the situation well nevertheless they have not taken that option made that available to them so i want to also look at these charts and it's interesting that they continue to use nine hundred ninety as the beginning and to today because nine hundred ninety is really sort of that's the era that generation x. entered the work market that's when we graduated from university and entered the

work market and it's also kind of when you were a few years since here working experience so the end of the baby boomer generation so. to me it's kind of interesting that you know this is all our debt load and the escalation the exponential increase in debt really started once the baby boomers were all in the work field they were already working and they kind of shape the market around them you can see them and then generation x. comes in in one nine hundred ninety s. so that's the end of a generation and the beginning of a new one and all those behind it i mean this is the problem we're having now with this so-called populism whether it's in europe or america is that generation x. millennialism below have basically come in at the end of a debt. also as far as the historically speaking member in one thousand nine hundred seventy you have the plunge protection team come in to save the stock market in one nine hundred ninety something similar happened in the bond market the bond market who actually had a bit of

a swoon at that time and the central banks came in to rescue the bond market so that's when the beginning of the plunge protection team kind of spilled over into the bond market and we've seen the legacy is that now in twenty nineteen twenty twenty where there is no bond that the banks won't buy no matter how much junk it is so again that the value of financial assets went from twenty three trillion in one thousand nine hundred to one hundred seventy five chilean today an eight fold increase the global debt outstanding went from thirteen trillion in one nine hundred ninety to one hundred trillion so debt represents fifty seven percent of global financial assets and the value of global equities outstanding has similar surged from nine trillion in one thousand nine hundred to seventy five trillion today while stock equities tripled in value between the global financial crisis lows in march zero nine to their most recent peak of ninety trillion in january of

twenty eighteen and yet. in this sort of period of time despite all this huge jump these tripling since just two thousand and nine or the increase in debt of nine fold in the past thirty years like still we're seeing larry kudlow you know the chief economic advisor policy advisor to the president saying we need fifty basis point cut in the fed interest rates so why the panic if we're booming and everything looks like boom time of time and manufacturing is increasing and construction you know real estate construction is increasing so why why why the panic and why do we need even lower rates and one of bernie madoff were allowed to force people to buy into his fun. gunpoint if bernie made a fat army and said if you don't buy into my ponzi scheme i'm going to shoot my gun at you even though the ponzi scheme was well known to be a ponzi scheme of the s.e.c. it investigated bernie madoff at least twice before they finally busted him and

they it was a well known ponzi scheme invested by well known people imagine bernie had an army now apply that to the u.s. dollar the u.s. dollar is a ponzi scheme why do people buy the u.s. dollar because if they don't the u.s. military a sense and they're obliterated whether it's iraq or libya or some other place like this around and so that's what paul krugman a set of the new york times rightly said the u.s. dollar is worthless it's backed by violence. so for example europe not america has eleven trillion and negative. denmark is one of the longest suffering of negative you know they have their own currency so you know where why it was worth or is us dollars still the majority of all transactions in the globe are u.s. dollars to post world war two standard economic the measurement is the u.s. dollar and that's why at the moment you have day dollars a shindig lobel ization going on pretty rapidly and you have the the new york times

would say this constant reminder to people around the world whether it's a c.n.n. that just came out recently and warned venezuela to stop playing games so back to the story about bank of america and their charts and looking at the global economy financial assets are now two hundred percent of global g.d.p. back in one nine hundred ninety they were ninety seven percent so the percentage of g.d.p. they're twice as big as the g.d.p. of the global economy now financial assets back in one thousand nine hundred when i first entered the work market was ninety seven percent these are you know psychologically this is a different world this is a different world we're looking at today than when generation x. first entered the work market these are. ways. so when you're seeing millennial is and train the work market for generations easy now like this is that what they're confronting is a global a world saturated with financial assets already now it's at two hundred percent in

twenty seventeen financial assets were two hundred twenty six percent so two hundred twenty percent is the magical number where everything falls apart and it starts to crash that we're a little bit below that we still have a little bit more before we apparently crash again but you know these are this is the dynamics that drive the voter the how they perceive the economy with they look at when they confront the economy boomer generation entered with zero debt in the world the you know probably us debt financial assets were like fifty percent of the g.d.p. by the time i entered it was ninety seven percent and now it's two hundred percent so at a certain point it's saturated and they can't absorb any more debt being. right there is a limit yes and the limit is historically known to be around this level. a an event. a reversion to the mean and you know what has reverted to the mean is the

dot com bubble you were a participant in the first einstein reverted to the meme or returning to the mean i think i said use of mean really is interesting given this is nineteen what years and i forget continue so the past ten years have witnessed the second great bull market in technology in the past twenty five years and twenty eight hundred tech in e-commerce sectors accounted for twenty six percent of total market cap. now down a little bit twenty one percent say rivaling prior sector extreme in the two thousand dot com bubble it was thirty four percent so dot com share of the. financial markets is back to close to where it was in the first dot com bubble still quite a ways to go so whether or not you're looking at this global economy and whether or not like larry kudlow says cut interest rates by fifty basis points can we go a little bit further can we get to those previous extremes and perhaps past them there does look like a bit of extreme left around we can push a little bit more debt into the. economic flogger our farm and we can maybe push

tech shares up a little bit higher when you are entirely how they calculate because i don't think they include banks which have now become primarily technology companies and i'm not even doing any banking anymore but anyway we're going to take a break we're going to take a short one and then when we come back we're going to have so much fun don't go away stay right there. in the world of political much making the european union has long put values before wealth as its most desirable in tribute. to the time it takes for the e.u. to make a policy decision china can set up a whole new industry values that's attractive to potential.

young elephants have come to us. especially brutal budging incidents because sadly you so often do see their mother as. killed but also be caught up unfortunate. and smile i see it simply someone's. express untamed says. welcome back to the kaiser report i'm max kaiser time to go to craig hampton f.t.'s battles report dot com crag welcome back max it's always a pleasure nice to see you and stacy will that's fantastic now krag the headlines

from the u.s. manufacturing and construction spending jumps in march europe however continues to contract how long can the u.s. race ahead of the rest of the world drag you know the first thing that comes to mind max when you say that it is you might recall couple of years ago janet yellen famously said we never see another financial crisis in her lifetime there are the. and then she said i think we're just back in january so what even a couple of months ago she said oh you know europe might lead us through the whole world into recession. i think she dropped a few cards on the table there tell us coming yeah and in the u.s. has clearly slowing too there are some as we speak some so there's an occasional positive data point in the u.s. but everything else retail sales durable goods employment report yeah you name it

the first quarter g.d.p. everything points to a slowdown and as we spoke the three of us back in january i think this year ends up looking a lot like the counter year two thousand and ten where we had come out of the great financial crisis in two thousand and nine in a had the fed had done this one off policy is least that's what we were told of quantitative easing it was going to be a one time deal wasn't monetizing the debt don't worry about that known in a or is it a one time deal. and then the economy began to slow the little two thousand and ten and by the end of two thousand general doing q.e. two and now you know it's endless. and i think that's where we're headed again here people are quickly figuring out that there will be no rate hikes this year in fact the bond markets telling you the next was going to be a cut and all of this stuff is becoming apparent here as we start the second quarter you know pregnant colonel may that time has stood still

is standing still and what i mean by this is that the u.s. and the u.k. in particular are stuck on stupid we have plain advents of this with both drags it and the russia game hoax bragg's it as they've said on this show for several years it's a logistical and political and possibility it's like removing h two hydrogen from water it's an it's like heart it's like corralling unicorns it's stupid and exactly what's happening now is what we said would happen for years utter political paralysis and chaos the russia gate hoax no matter how much exonerating information comes out by the highest courts in america there is still a doubling down by the doraine judged lefty loony rachel maddow of the world they have this collective mutual the range of unsent drome trumped arrangement system.

symptom and what i was trying to say. not syndrome syndrome thank you craig and. in the area of economics it doesn't matter what data is published it doesn't matter what manufacturing data is published it doesn't matter what the employment data it doesn't matter no data it's all nonsense because the matter what anyone says if the response is always the same as larry kudlow has said the fed needs to come rates by fifty points and that's always the end. they're krag that's where we're stuck on stupid the world is dead it died in two thousand and eight we just need to keep feeding blood to the corpse and everything will be fine and feed blood to the brain and rachel maddow will stop being a propagandist tokyo rose any it and brags it will happen right just print more money craig right and i am actually summed it all up right there my friend. that's exactly it larry kudlow who are member from bear stearns he was known as

father snow on wall street had a horrible reputation you know he says we need more drugs well that makes sense for a guy who's got his reputation crack well ya. i mentioned earlier the bond market selling is too i mean the way rates hiv flattened out and come down just since the last two weeks after the most recent f o m c i mean is telling you what's coming but you're right i mean max have been that. we've been in a zombie economy that's the best way to put it since two thousand and nine everything died. the fed the c b bank of japan i mean you go around the world there but they've all printed trillions and trillions of their own currency to try to reliquefy their banks and manage to keep it on life support and meantime you've got all this other nonsense you know to distract everybody and keep the political fighting going. that's a whole other story i suppose but in the meantime as long as the stock market goes

up and your quarterly for one case statement is higher than it was the last time then the masses are mollified in and all of this continues you know i actually i was just writing for my subscribers again today in reminding them that it is now been about one hundred days ago as the stock market in the u.s. around the world was crashing in december suddenly there is a meeting of the u.s. working group on financial markets which you know we like to call the plunge protection team an emetic i mean look go to google and type in president's working group on financial markets isn't like some crazy conspiracy theory this is a real thing and back in the day at this time that is crack cocaine one of the major food groups is heroin one of the major food groups and i get healthy by injecting peer smack all day i think so you know i can have capitalism without

capital and how can you have capital without a savings rate that i care encourages capital formation in other words i don't have capital formation if you don't have interest rates at least two or three percent to encourage capital formation and savings you're not you don't have capitalism what is a cigarette what is this economy what do you call it aside capitalism it's not socialism is it just a pack of stock or say is it a club talk or say is it just now is it futile is the what is it i don't understand where is the name or what do you call this economy it just looks like. crack ism. i was like kleptocracy for the you know the root meaning of you know cleft o. stealing and that's that's what i have which i you know ever said you go back to one nine hundred thirteen when the federal reserve is created and you look at how much the value of the dollar has been devalued and when you print more dollars and do you value the dollar you're centrally stealing from all the people whole dollars i mean you know i stay see everybody listening to us that works

whatever we have left over after repair bills is savings that's an accumulated storage if you will of all of our efforts and it's held in dollars and so as the fed devalues the dollar they're basically stealing from you and when they steal from you they give it to the banks which then use it to create more dollars and charge interest on stuff that was created from nothing kleptocracy is the term i that i like to use at least right well according to economics we're told that supply and demand are a factor in determining prices and yet in the paper market in the bond market and the government bond market the supply of paper has never been higher and the prices go up meanwhile in the gold market demand demand has never been higher our should hasn't been high the science fifty years and of course prices are stagnant so again supply and demand all matter you have in the gold market now you've got with.

gold prices are you know sideways down. and. well you know what i mean is it even worth. it what can we say about gold i mean yeah it is it's money it has no counterparty risk central banks like russia china are buying hundreds of tons of gold central banks are buying for the first time in fifty years but chinese public is buying it but i guess americans. if they own gold that would give them political agent say an individual sovereign say and then they might exercise freedom of speech and there might be a political awakening in america right so by keeping gold cheap it's like giving the population of america stupid pills right. max i could i could send you

a link you've probably seen it. wiki links when they call it we keep cables whatever was that they dug up and released up to three years ago showing electronic communication right back before the futures market in gold was introduced as it did december thirty first one nine hundred seventy four how they're going to design this so as to discourage physical gold ownership the volatility the price suppression all that kind of stuff we get people to not want physical gold in the u.s. for the very reasons that you just mentioned and then you think who has actually own gold you mention i mean you go in the east from turkey to india china to russia they're holding physical gold in the west anybody that does actually own it own some kind of alchemize guards you know whether it's a futures contract or a share of the g.l.d. there are some out unallocated account at a you know

a canadian bullion distributor i doesn't matter they you don't actually own gold your own gold exposure and while the banks can create as much of that exposure they want in a kind of a twenty first century alchemy that allows them to measure prices like this that there are going to eight hundred seventy four right on that note the european central bank just stated last week that member nations need to get approval from them to manage their national reserves so that's obviously a another attempt to keep gold you know to give the masses stupid pills now the fed has recently suggested that negative rates are in the cards in the event of another financial crisis what are they talking about when this house when the house price of construction continues to boom and manufacturing is increasing we have about a minute left the whole job or for another segment but can you comment on that track well the other second so the other part of that max that they have to put in first is that what we call the war on cash i mean aig i mean just follow the headlines every day you'll see little. snippets here and there of the story is it

that he quake holding cash physical currency hundred dollar bills with been a drug dealer or you know a bookie only these illicit activities require cash so therefore we just get rid of it's a lot easier just a flash card when you go to starbucks anyway if you can eliminate cash physical currency then then off how easy it is to impose negative interest rates on it which is just another form of this wealth confiscation money confiscation from the banks that's where we're headed the central banks of all told you this that everything is going to be available in the tool box as they say the next time the economy's roll over and negative interest rates one of them which again it's back to clip up left ocracy let's us could devise all the different ways we can to steal from the masses and enrich the few and that's where this is headed all right well let's have for this edition ought to be out for the site but that is credit for being on the kaiser report all right and that's going to do it for this edition of the kaiser

report with me max kaiser and stacy ever like thank our guest krag happy to finals are part if you want to catch us on twitter sky's reports next time i don't. u.s. veterans who come back from war often tell the same stories. were going after the people who were killing civilians they were not interested in the wellbeing of their own soldiers either they're already several generations of them so i just got this memo from the search that says we're going to attack and destroy the government and seven countries in five years americans pay for the wars with them money on those with their lives if we were willing to go into harm's way and willing to risk being killed for

a war and surely we can risk some discomfort for an easy for. china has arrived in europe in a very big way and not everyone in the west welcomes this italy support of china's belgian road initiative is a game changer the washington consensus that has dominated the world for the past seven decades is being challenged but turned to the east continues. i think more doogan is an outstanding person because he took on the most powerful agency in this county or you'll be to stay if you look at it from the analogy. marc was the day that when he was five. do going to spin the sheriff's most contentious critic for a year is the first time i noticed something wasn't right in the east were pretty

much when i first started the corruption in palm beach county is not something that you can smell or see like that it's a nod and a wink it wasn't what i wanted to do. more in this county then some states have had collective drug and went to his website began featuring comments about go to the sheriff's wife and. wash you like a bug. then you should say unless mr i believe what i'm doing ok. it's your funeral. critic. of the united states. into russia political. men they know bad wolf.

the u.k. prime minister begs europe for yet another delay this time until the end of june e.u. members say they are ready to take a tough line. supporters of wiki leaks founder julian assange hold a vigil outside the ecuadorian embassy in london after reports that he could be expelled from the building. and the u.n. security council calls on libya's rival factions to avoid bloodshed as a commander from the east of the country advances his troops towards the capital tripoli. the latest on the stories you can.