basis points and the forecast for the ten year j g b the japanese government bond yield at the end of two thousand and twenty is a pitiful zero point two percent is the japan a fixation of global interest rates of the past ten years the us continues apace but number five why investors keep getting wrong why they keep thinking interest rates are going to be higher is because they miss the four d.s. and that is for deflationary dees of excess debt bank the leveraging tech disruption and aging demographics explain the consistent undershoot of inflation expectations the inability of monetarism to boost wages and income in the world's largest economic regions is sparking a populist backlash amongst electorates and this is again a theme that we had mentioned in the previous episode and episodes monetarism the monetary policy cannot spark they cannot encourage wage growth they're only encouraging asset price growth and not creating the inflation they allegedly want

in order to plate away all that debt well let's talk about japan ok because japan starting ninety nine ok the nikkei if memory serves topped out at around forty thousand or so dropped down eight thousand i think it's right back to twenty thousand but advantage in what was known as the last decade that became the last two decades which is now the last three decades so japan proves that you don't need interest rates above zero you don't need capital you don't need savings you don't. you don't need inflation right so people like the united states are saying like well why can't we just be like japan why can't europe is saying why can't we just be like japan when nothing bad has happened to japan arrived so why can't the world just be like japan and have no growth no no interest rates and you know this just keep to the last the last decade it's keep racking up one up. the fact is japan had

a mega massive pile of savings that they've been drawing down on for thirty years so it's that huge pool of savings that has been buying all those japanese government bonds for the past thirty years the savings rate used to be close to thirty percent now it's way further down because they don't have they've already depleted their savings but we are also japan does have their kind of front runner in this this notion of the zombie corporation they've had many zombie banks and zombie corporations that kept alive for the last thirty years so that's before i move on to my other headlines that's the last one from the bank of america you know the hitchhiker's guide to the financial universe is there point number nine was that there are now five hundred thirty six zombie companies in the world which is thirteen percent of total all corporations in the world that their their zombies basically they're only being kept alive they're not even earning any money beyond

their interest payments they're not earning more than their interest payments every year they're all kind of like american you know we're we're spending more in interest and debt than we are. earning the savings in the japan have been depleted that's correct and they simply print now they print then by they printed by current and by. right so the us does the same thing they monetize debt the c b does the same thing now they got it in negative interest rates so they print them buy less of what they're printing or they buy more of what they're printing now they buy more of what they're printing actually so they're buying more than they can print fast enough to keep up with how much they're buying so it's negative they're going down a negative rabbit hole but. you know at the same time in order to make this work you've got to ratchet up the surveillance state pretty rapidly as we're seeing in china and now it's coming to the u.s. so that if you're not in your little box and you're out of the casino clicking on facebook you'll be the platform and presumably some. off to the gulag at some point

let's move on to the next headline because they have a headline about oh obamacare you know that's being challenged by again by the trumpet ministration and they're bringing it to the courts to overrule it now donald trump tweeted that the cost of obamacare is far too high for great citizens the deductibles in many cases way over seven thousand dollars make it almost worthless or unusable good things are going to happen typical tweet but mass stoller who writes often about. the consolidation of corporate power responded trump is somewhat right he's a con man trying to sell us a bill of goods but he understands that to con people you have to promise them stuff they want he can deceive afterwards but people do not want six thousand dollar deductibles and narrow network plans and again this is close to twenty percent of the u.s. g.d.p. is on health care which doesn't add anything to productivity it just depletes our wealth it doesn't add to our wealth but the fact is if you did fix it and you say

you restored it to. a percentage equal to say what france has say eight percent of g.d.p. that would lose a lot of the economy right on that because it would if you cut it by half it with theoretically be a huge hit but perhaps that savings the seven thousand dollars deductibles that people don't have to pay for obamacare perhaps they would buy a new car or they would you know invest in a company or buy stocks or buy some of the fine art that maybe they can now afford because you know the average obamacare person if you're on obamacare and unsubsidized you're basically paying a car a year you're paying twenty thousand dollars in premiums right now i don't understand i understand what the government in america has done here they don't want to pay for people's health care so they get me to pay for it so i'm paying more of those people that pays twenty twenty two thousand dollars a year that is about sixteen or seventeen aid. thousand dollars more than than

would any reasonable industrialized nation would ask their citizens to pay so i have a solution simply give me a tax deduction let me write that off against my taxes and i'll be more than happy to pay it if you want me to subsidize my neighbor self care ok it's a charitable deduction let me fricken write it off on my taxes i mean what i don't understand why i have to pay for my communities health care something the government says they do and not get a tax deduction that's not acceptable that's taxation without representation who out over fifty percent of all health care in the united states every single dollar that goes into health care over fifty percent is paid out of taxes on medicaid or medicare. partly because they're the only can afford but how you want to pay taxes i already paid for so why people why have you twice why do we do it why charge me for the people who are don't get any cost whatsoever the burden is on me max kaiser

i need that tax break otherwise you're just ripping me off on mercifully well it is going to be always of only ability for the democrats if obamacare exists because it is a very small group of people but nevertheless it's over like it's about two million americans that are forced onto obamacare who pay their unsubsidised so they have to pay the full cost and their deductibles are seven thousand dollars so you pay twenty to twenty five thousand a year premiums that's just sent to the that's my guy hello let me let me continue so you me joe bag of donuts jean you know chris. they all have to pay twenty to twenty five thousand dollars in premiums that is just sent to connecticut where it goes to somehow care executives who have beautiful homes and avon in farmington twenty million dollar homes with their.

thank you very much now you have to before but say you get sick you spent the twenty thousand you would think ok you get some you know medical care no no no no you have to pay a deductible first first you have to pay the first seven thousand dollars in treatment but a lot of people it turns out don't have the money for that because they pay all the twenty thousand and the premiums so that's why you're getting vast you know it's a small but significant because remember hillary only lost by fifty thousand votes and key states all you need is two million angry people and it could throw your electoral college situation out but again i want to move to another art of what is and what is that a minute you're saying the female equivalent of joe baca don't it's jane crystal meth and i couldn't think of another way i could just. anyway we have a woman in the headlines here at this is elizabeth warren says a big agriculture company should be broken up so remember recently we cover the fact that she wanted to break a big tack because they have

a monopoly on the surveillance state and they're able to basically be platform people and essentially remove your first amendment rights because that is the public square now you know twitter if you're not on twitter and facebook you're cut off from the entire community around you in the political conversation so she wants to break up those but now she wants a break a big agriculture this i would love i would love to have a tomato that is as good as any you could get in europe or turkey or russia or anywhere that has like small farmers still democratic presidential contenders elizabeth warren and amy club a char expressed support for strengthening antitrust laws and enforcement to break up big agriculture monopolies you've got these giant corporations that are making bigger and bigger profits and they're putting the squeeze on family farms and small farms warren said at the heartland forum which has focused on rural issues again like this the like dreariness the whole it's like what you imagine during the.

worst of the soviet times the dreary products available on the shelf it's like that's what you get when you go to the supermarket here it's just like bland this they might look different but everything tastes the same as like especially the fresh fruit vegetable who want to turn noble tomato i don't and that's what they've got here now in the us and yeah bring back a million farms a million farms and that would increase wages increase the labor productivity increase the health of the nation so your health costs would drop down dramatically increase the self-esteem of the nation so instead of killing fifty sixty seventy thousand americans a year on opiate overdoses you know people happily milking cows all day needing fresh tomatoes they're not going to be reaching for the cotton. now so of course bring back a million farms well there are a lot of family farms and what happens is that however in the u.s. it's the distribution just like you know when there was talk about aid to africa as part of the problem in africa is distribution there's very bad distribution here

all the distribution channels are controlled by those big three maybe four agricultural companies including one santo so you know they control the distribution so farmers only have them to sell to so that's why they there is an emergency in some areas of you know farmers markets but the u.s. senator from massachusetts called for breaking up some of the biggest farming corporations so that they not only do not have that kind of economic power so that they're wiping out competition so that they're taking all the profits for themselves but also so that they don't have that kind of political power so the political power is the most important as michael hudson said you want to break a big big check at the same time raise interest rates because they've all become financial eyes as we report of the show many times and by increasing the cost of financial fraud you would increase the viability of the economy and the ecosystem ok we've got to take a break when we come back much more farm fresh. free range t.v.

coming your way to go. play. i do think the numbers mean something they matter us with over one trillion dollars in debt more than ten white collar crime happens to. eighty five percent of global wealth he longs to be rich. six percent world market for personal some with one hundred to five hundred three per second per second and when he rose to twenty thousand dollars. china's building two point one billion dollars a mark but don't let the numbers over. the only number you need to remember one one business you know for the mid one and only whom.

i made 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. going to has been the sheriff's most contentious critics say he is the first time i noticed something wasn't right in fleece work 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. we've had more shootings in this county then some states have had collectively children went to this website began featuring comments about his family the sheriff by then . wash you like a bug. you know we should stop then you should say and i'm left in the stuff i

believe what i'm doing also it's ok you know it's your funeral buddy f.b.i. raided p.b.s. and critics in the house. i snuck out of the united states. into russia political. thanks men they know bad wolf.

welcome back to the kaiser report i'm ask eyes are time that a return to part two is correct and if t. f. metals report krag welcome back nice to see a max according to the bank of america the us corporate bonds hit an all time high versus commodities in june of two thousand and seventeen exceeding the prior year highs set in one nine hundred thirty three so there they're still near this all time high what does this mean craig max i mean again you get these things like these data points like this is just really makes you realize just how messed up things are. that's just another one i've seen charts that show commodities versus the s. and p. kind of commodities in general as the s. and p. being it you know multi-decadal oses well. i don't you know

a lot of this guy get back to the fact that so much now is driven by computer i mean there's very few carbon based traders like you and i that affect things anymore and everybody just writes or computer code and then unleashes it out into the you know the high frequency trading world and so you get all these these these aberrations if you will in these extremes you get hit because the computer is a just run with it they keep getting the same inputs telling to do one thing and not do something else and then you get just these wild extremes you see across the equity markets you see in the currency markets you see it in precious metals markets and to tell you what it it leaves you scratching your head sometimes about you know how what to eventually snaps things back to you know like a reversion to the main only interesting to see if it ever happens well just to be clear so corporate bonds prices are moving higher you know typically because people

are buying corporate bonds because corporations are making some much of. money because the economy is so robust but at the same time commodities the thing that goes into the activities of the corporation are trading at lows right so there's this huge disconnect like how can how can these two these are mutually exclusive you know so you're suggesting that. as we were saying earlier there is you know data is meaningless and in a world where there are there is no there is no situation that's not met with the exact same response the print money doesn't matter what the data is doesn't matter what the economy the saying doesn't matter who's the president doesn't matter what war is going on where it doesn't matter what social justice movement is alive or dead doesn't matter who's being exterminated or not it's just print money that's it that's the only that's the only response ever to everything now the same report

indicated that thirteen percent of all companies are zombies corporations only alive thanks to cheap money again this is already been happening in japan for thirty years and now it seems to be the fashion everywhere right to this data point specifically about corporate bond continuing to rally again that's just a symptom of what the central banks have been doing for the last decade and if true this is why the long rates continue to crash when the fed kept telling you now for the last five or six years that things are going to normalize right that they were going to hike the short end the fed funds rate and then the whole current respond you know in that ten year note was going to go back to five percent and long bond going to go to six and but they've created so much money so much cash that it's constantly sloshing around the planet looking for a home and when you're already you know you get negative rates and the ten year bond in germany is negative if you go out even to twenty years in switzerland before you get even

a one basis point positive return well money is going to go someplace and so even though corporate bonds i mean you could be a really terrible. credit and you think well i don't want to you know i would normally buy that but if i can get you know four percent or three percent versus you know one basis point in a blue and ok i'll take my chances and so there's this constant bid for even this garbage fixed income stuff and again that's part of what the central banks have done meanwhile there's actually no bid for actual garbage if there was that we would be dying from this ecological disaster we're all suffering from now you know crank signals market signals are key to understanding our financial ised world what we're saying is that the signals bond prices etc are warped and we're so therefore we don't have a clear picture of what's happening and that mass chaos confusion social unrest and riots are the result that i want to focus on one item and the price of this one

particular item and what signal this may or may not be telling us you've written about this and i think we're going to go down a very interesting rabbit hole here and the commodity is palladium the prices are higher than gold or platinum there's a guy rocketing they've been volatile recently they're in the fourteen to fifteen hundred dollars an ounce recently up forty five percent the past year so there's a couple of things going on here as we've been saying the connection between commodities and industries seems to be disconnected so you have to understand ok what's happening and palladium then you have ok only one major supplier russia so are they attempting to corner the palladium market like the hunt brothers tried to corner the silver market and then finally and to your point what i think this is interesting is played the i'm going to be the first commodity to to have the paper market behind it destroyed by people demanding physical delivery of their

futures contracts on these features exchanges well let's hope x. is the. palladium would be palladium bullet. that could kill these vampires in the meaning the banks and expose what they do how they price these precious metals and industrial metals and almost everything else through futures contracts palladium is interesting at present has it gotten all the way up to six hundred dollars an ounce and then fell back sharply over a period of a couple of days here recently we saw you know two of the things that were clearly driving palladium and clearly indicated a physical supply squeeze was extremely straights meaning in london meaning say max i needed to deliver one hundred ounces of palladium to somebody because i had you know made a promise to future delivery by short and i don't have any so i got to come to you and you have some and i say i need this hundred ounces delivered you say ok i'll

give you one ounce of it you've got to pay me back one hundred ten or one hundred twenty that is a clear sign of shortage right well that was one thing you know part was what we call backwardation on the futures board where the spot prices are well in excess of the futures prices those two things combined are one hundred percent universally recognized an indication of physical shortage well and i tell you all this because both of those conditions eased right before the recent price mash of about ten or twelve percent from the haas so i don't know maybe somehow you know the banks are going to survive this one maybe somehow some physical plate image finally shaken free at a certain price level we'll just have to see but what i'm hoping and as you and i have discussed in the past is that the palladium market will break in that and what i mean by that these banks that run the play the market they also run the gold markets a silver markets a copper markets

a platinum markets you name it and then they run it through derivative contracts promissory notes obligations for feud. you delivery that sort of thing and if you don't have the physical model then that whole scheme. can't you and it's pincers and that's what it was beginning to happen and played and we hope it resumes because what would be nice is if the investment world then were to wake up and realize and go wait a second hold on just a minute if the polarity of market can crash in this way and prices you know skyrocket to some point where they have to price has to be determined through physical transactions or maybe gold and silver prices way too and we might finally shake free from the claws of these evil banks but like i said it is you and i speak it almost appears as if that squeezes easing a little bit so we're going to have to watch and see what happens in the weeks ahead well a few years ago of course we did crash j.p. morgan by solver and we took the rise from fifteen dollars to fifty dollars and we

were on the verge of breaking j.p. morgan and then j.p. morgan got the government to relax the rules in a way that allowed them to flood the market with even more and they could shorts and paper solver and they government gave them a way to exit. the the campaign but with palladium what you're see what we're suggesting here is that it's like crash the banking system by palladium but it wouldn't be a bunch of retail investors around the world buying silver to crash j.p. morgan this could be an orchestrated campaign by a state that perhaps could be saying that we want to break the dollar we want to break the u.s. control of the global economy we can help you do that by crashing it in the form of getting played him up to three or four thousand dollars an ounce that would certainly take redefine the global economy in a big way now moving along here you know gold and silver at the same time have been

down and you know i think we kind of know why the fed has recently suggested that negative rates are in the cards. they know in the event of the financial crisis again i'm negative rates this is just confiscation it's a bell and by another name it's just the government taking money out of your account it's like the old roman coin clipping back in the day when the denarius was reduced and silver content is just the the state overreaching in india or black pocket cregg when we were first went down the road this road in two thousand and sixteen was the last time we had this you know more than ten trillion dollars of global debt with a negative yield and we're tarmac then max you and i about i mean this was the the greatest fundamental reason for individual people in europe us everywhere to actually own physical metal because member that's what we're

always told on c. and b. c. in other places why would you own gold it doesn't pay a dividend well hells bells no dividends better than negative two percent right so i think in the end this could be you know negative yildiz and war on cash all this stuff is a fundamental driver in the more physical metal that we pry from the hands of the banks you know that leverage it and hypothecate it and do all that you know all the other jazz that they do the more we take away from them the more of a squeeze it puts on. their own again though what my concern you know i just draw this back to play in for a second is this type of thing is an unprecedented another term people can google is a the main potato disaster or whatever you want to call it from back in the seventy's where there was a default in a futures market you know it would not surprise me and i'm sure when surprise you either max if if the palladium story completely exploded it was all over the

headlines for about twenty four hours and then just want to let you know everybody just turned right back to talking about how you know apple's earnings are going great and you know that kind of thing so. you'd be nice to see these markets explode or implode or whatever due to factors like what we discussed and plenty about man maybe i'm just jaded after all these years of following at the bills like . what it's going to take to finally break the backs of these banks yeah well i think jade prices are up so you might be making money on that are a cry can't be thanks for being on the kaiser report you bet max good to see you are writing that's going to do it for those edition of the kaiser report where the me max guys are in our guest training camp if medals are for i'm using my radio. if you want to catch us on twitter it's kaiser report and so now it's time to buy y'all.

just manufactured two sentenced to the public will. when the ruling classes protect themselves. with the fine merry go round lives and be the one percent. we can all middle of the room sick. leave. for use but i think. this is your. new show the first one to the finished goods.

which is. to listen to this who do want to. thank you for your was myers in the car can you pull off. a couple of. the pretty to talk a little. it's a look which of them performs. a. little pull supports the border of these products one of these mythical you'd be near the roof because the. assertion you don't want to reduce me a. little bit you. know pull someone you into believing it because you've got a story you know it's easy. to

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