they are the cup talkers say 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 ng 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 have say steve keen and his policy of quantitative easing for the people that has to be down 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 children to one hundred and seventy five children so everything kind of starts in one nine hundred ninety and you see the debt rise from twenty three chilean to one hundred seventy five trillion with your comment well you know this you say that the governments of abdicated their role in managing an economy that outsources. 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 caught 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 that it would also would not incentivize the perpetual. transfusions of this free money to keep design be

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 error 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 and that 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 could 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 it 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 the charts look like 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 fund. gunpoint if bernie made a federal me 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 earning because u.s. dollar is 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 globalization 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. there 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. weights. so when you're seeing millennial is entering the work market are 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 the we're a little bit below that we still have a little bit more before we apparently the dynamics that drive the voter the how

they perceive the economy with they look at when they confront the economy a boomer generation entered with zero debt in the world the you know probably u.s. 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 just darkly 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 is going to the need i think the news of mean really is interesting given that 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 eighteen tech in e-commerce sectors accounted for twenty six percent of total market cap. now down

a little bit twenty one percent say rival and 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 higher when lawyers are only how they calculate the because i don't think they include banks which have now become primarily technology companies and 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.

us veterans who come back from war often tell those same stories. were going on for the people who were killing civilians they were not interested in the well being of their own soldiers. there are 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 without knives if we were willing to go into harm's way and willing to risk being killed for a war surely we can risk some discomfort for an easy

for. the world of political much making the european union has long put values before wealth as its most desirable attribute. in the time it takes for the e.u. to make a policy decision china can set up a whole new industry. to potential. i mean more doogan is an outstanding person because he took on the most powerful agency in this county for you'll be to stay if you look at it from the analogy. marc was the day that when he was. going to spin the sheriff's most contentious critic for a year is the first time i noticed something wasn't in. pretty much when i first started the corruption in palm beach county is not something that you can smell it

seems like it's a nod and a wink it wasn't what i wanted to do. in this county then some states have had a collective thing to go and went to his website began featuring comments about his family the sheriff's wife and. wash you like a bug and you know i wish you'd stop when you said they're life and stuff i believe what i'm doing ok you know it's your funeral building. the f.b.i. raided p.b.s. and critics doogan this house. i snuck out of the united states. into russia political science.

welcome back to the kaiser report i'm max kaiser time now to go to craig hampton f.t.'s metals 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 is you might recall a couple of years ago janet yellen famously said we never see another financial crisis in her lifetime remember that one. 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 you what's 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. 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 and they 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 economy began to slow the middle 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 it had to get 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 kearney 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 drain just lefty loony trumped arrangement system. a symptom of 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 answer craig this is 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 idiot and brags it will happen right just print more money craig right. you know i'm actually summed it all up right there my friend.

that's exactly it larry kudlow who our 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 and well that makes sense for a guy who's got his reputation crack well ya. i mentioned earlier the bond markets only this 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 they're all 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 are goes up and your quarterly for n.k. 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 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 august and 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 write things 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 know if you don't have capitalism what is a cigarette what is this economy what do you call it aside capitalism is not socialism is it just a crack a stock or say is it a club talk or say is it just now is it futile is all 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 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 devalue 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 the values the dollars are basically stealing from you and not on stuff that was created from nothing kleptocracy is the 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 and a 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 either side 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

a sideways down. and and a half what 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 age and 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. with the links where 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 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 does 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 out before 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 all of 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 prices of construction continues to boom and manufacturing is increasing we have about a minute left all job are for another segment but can you comment on that track well the other second the other part of that max that they have to put in first is that what we call the war on cash i mean it i mean just follow the headlines every day you'll see little snippets here and there of these stories that that equate holding cat. ash physical currency hundred dollar bills with been a drug dealer or you know a bookie only these illicit activities require cash so therefore we should get rid

of it's a lot easier just to flash a 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 have all told you this that everything is going to be available in the tool box as they say the next time the economy's rollover and negative interest rates one of them which again effect a clip up kleptocracy 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 pay for the site with the ass crack for being on the kaiser report. all right and that's going to do it for this edition of the kaiser report with me my skies are unsafe ever like that our guest greg empty of j.s. battles are part if you want to catch us on twitter sky's reports on exile by l. .

after the previous stage of my career was over everyone wondered what i was going to do next the ball different clubs on one hand it is logical to sort of go from fields where everything is familiar on the other i want to the new challenge and the fresh perspective i'm used to surprising us all why not give. up football not be or else you can think i was going to go. by the way ways and such like here. but the thing the numbers mean something they've never us is over one trillion dollars in debt more than ten white collar crime families each day. eighty five percent of global wealth he longs to be ultra

rich with six percent world market those thirty percent some with one hundred of life would prefer chicken per second and this one rose to twenty thousand dollars. china's building two point one billion dollars a i industrial park but don't let the numbers over. the only number you need to remember one one business show you know bored to miss one and only boom but. young elephants have come to us after. myspace sleepers so pledging incidence because sadly the baby. elephants often do see their mother as not only be killed but also be caught up unfortunate. i do believe the elephant smile i see it in these little ones they are home safe so they express and changes

. the game. what politicians do something to. put themselves on the line to get accepted or rejected. so when you want to be president. or somehow want to. have to write the book for us as a white woman for the three of them or can't be good that i'm interested always in the waters of my college. course it. would lol make us manufacture consent instead of public wealth. when the ruling classes hundred checked themselves. in the financial

larry your realm lives only the woman said. to ignore middle of the room signals. to leave the room very real news for the world. wiki leaks obtains what it says is a press strategy agreed by door in the u.k. to be used in the event wiki leaks founder julian assange is extradited to the u.s. for their feeling rumors the whistleblower is about to be expelled from his embassy refuge in london. police in paris use tear gas and arrest more than twenty people as protesters gather for the twenty first consecutive weekend of anti-government rallies. plus support the end of the venezuelan president are preparing for a new wave of protest on saturday all the opposition leader announces

a new plan to topple nicolas maduro. but he was troubled.