while purchasing twelve trillion dollars in securities to prop up risky assets we're 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 be 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 nail futile class they are the club 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 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 rank 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 right 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 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

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 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 and 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 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 fun. at gunpoint if bernie made

a fat on 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 all of these are occurring as u.s. 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 level 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. 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. 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 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 returning to the mean i think i said you should mean it was interesting given that this was 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 lawyers are learning how to 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.

i know there was a crack seems to do crack when i was a location my day he was like a bust at the so you know i got like what i needed when i was a baby but i had a bad childhood. there's always been single mothers and african american community service and same free. i think it's more of a teenagers having kids in you can expect a fourteen or fifteen year old first daughter now order for and there are far there any check out. the lost their place and. my car end up breaking down i was unable to get to work on time so they let me go with my paycheck that i bring home i have barely enough to pay my car insurance. the gas in my car.

as we continue to grow online with our online identities and personas you will continue to see this mixture of physical crime and internet crime in the mail to a point where they're almost indistinguishable it is you can't really distinguish what all. us 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 there already is several generations of them so i just got this memo from the circular defense offices we're going to attack and destroy the government. and in seven countries in five years americans pay for the wars with them money those lives 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 and easiness. welcome back to the kaiser report i'm max kaiser time now to go to crag camp battles report dot com crag welcome back max it's always a pleasure nice to see you and stay single that's fantastic now krag that binds 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 a 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 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 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 it 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 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 them out or how much exonerating information comes out by the highest courts in america there is still a doubling down by the doraine just lefty loony rachel maddow of the world they have this collective mutual the ranger and send jerome trumped arrangement system. a symptom of what i was trying to say it's. not syndrome syndrome thank you crag and. in the area of the 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 is 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 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 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 this to me 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 macs have been the. 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 both 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 in fact i don't ask this of them 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 does 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 even understand where is anymore 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 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 sideways down. and. well you know what i mean is it even worth a half 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 agents 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 to it the 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 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 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 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 at that equate 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 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 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 rollover and negative interest rates one of them which again it's back to 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 say for this additional to pay for the assignment 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 my studs are in states ever like that our guest greg empty of jeff battles are part if you want to catch us on twitter sky's reports on lifetime bio.

young elephants have come to us. especially brutal budging incidence because sadly the baby elephants often do see their mothers be killed but also be caught up and. i do believe and smile i see it in these little ones the home they should express untamed says. the. same wrong. just don't call. me. yet to shape out this day become educated and gain from it equals betrayal.

when so many find themselves worlds apart. just to look for common ground. desperate for a single purpose. they have a superman. they start training very young. eight months of intensive school. raps. and they save lives. join me every first week on the alex simon sure and i'll be speaking to guest of the world of politics sports business i'm show business i'll see you then.

because what it say's is a press strategy agreed by a court or a new k. to be used in the event wiki leaks founder julian assange is extradited to the u.s. further fueling rumors the whistleblower is about to be expelled from his embassy refuge in london. there in paris police have used tear gas and the rest of more than forty people this protesters gathered for the twenty first consecutive weekend antigovernment yellow vests relics. baltasound opponents of the venezuelan president preparing for a new wave of protests the day their position leaders announced a new plan to top.