emanating from the global empire that is the united states and that is causing a lot of distrust of whether or not our trade deals are any good or whether or not our word is any good whether or not we might invade somebody whether or not we might you know spy on an ally like we did under obama with angela merkel for example like so there's a lot of distrust going on and of course the diplomatic speak is that we're all fine everything's great everything's going to be sorted out and this is just the art of the deal but one thing you can look at and the data you can always point to is not only the invention and creation and the flourishing of big queen for example from 2008 since the financial crisis but also the accumulation of gold and how people are nations in particular are turning to gold the global collapse and trust has driven a secret bull market in gold and this is a tweet from dominic frisby and he is the links to his article that he wrote in

money week and he looks at a new paper $300.00 page and or report that comes out of lichtenstein. called from incremental which is a lichtenstein based investment company and they put out a report called in gold we trust and they have a lot of interesting data we're actually going to talk to one of the guys from there soon but incremental observes that in the west trust is disappearing people no longer trust their governments they do not trust their politicians they do not trust their scientists or there are economists experts are biased the media is biased even systems and processes are no longer trusted whether it's education health care even democracy itself right lot the lack of trust trust is trading at an all time low trust is crashing on the global markets so when that happens people buy gold and nations buy gold countries buy gold central banks buy gold the buying gold the bryant park and gold that's making a new all time highs australian dollars spent them almost a dozen. russian rubles almost denies in canadian dollars almost aizen neuros so

all over the world it's creeping higher because of the trust being eroded as we get from currency war a trade war and then a somewhat positive we get into a more of a hostile situation you also see that those who sit atop the institutions in which we no longer have trust where there is the large banks or the large education systems or the large corporations or indeed the media you know the those who are the talking heads when we begin to lose trust in those institutions they have to either respond with being more trustworthy or they start to attack they start to do things like let's take down you tube there it can't be because of me and my opinion being spouted every night on cable news it has to be because they're going you know they're looking at the consequences of the absence of trust people turning to other

sources of news. as the cause of the lack of trust rather than that they were the ones that started giving them false information like the false information of w m d's in iraq or the false information that everything's going to be ok with the economy and lloyd blankfein and jamie dimon deserve the trillions and bailouts so that was what caused the absence of trust and they have a chart here which is really quite fascinating looking at trust in governments and the percent change since 2007 so right before the financial crisis the blue little diamonds there are what you really want to look at and that's the decline and trust anything below that center line is like they've had a complete collapse and trust in their governments finland has been the biggest collapse in the trust in the government over here is like they've actually increased their trust in their government since and that's in israel russia germany

switzerland all the places with some hard currency hard money are have seen an increase in the trust as this pyramid scheme around the world series to disintegrate well another thing that's crashing is humility. and something also skyrocketing in value is benefiting. so homo sapiens as a species are becoming into a very vain shallow creature that can withstand any criticism whatsoever and anyone who sees anything online remarking in any way that's critical of them their 1st reaction is as a tyrant to banish all discussion that is the response of a narcissist of a tyrant of an ego maniacal cycle and that characterizes not only our leaders but also the average person on social media we as a species are quickly devolving into groups and to grow well of course it's

also fear fear. or what's coming next. and in terms of trust i want to say you know the absence of trust when the complete loss of trust is what in monetary terms will cause hyper inflation because inflation or deflation are caused by you know the collapse or rise and they mount a money printed on the amount of money in circulation around the mount of money being created but hyperinflation is caused when there's just total lack of trust anymore and the ability of the government or central bank or the makers to control the value of their their imaginary money at the exactly right so paper money never survives on none of them have ever survived 300 years we've never had paper money survive. the british pound has been around for a long time but it's lost 99.5 percent of its purchasing power so effectively and also the debt and the gold has been around for a while because the new kid on the block that's what the millennial zx are into because it's native to their digital experience and so those who aren't going to

have the gold or the big going will make the rules you know the banks when they go bust this time as jamieson lump said we're waiting for the point where the banks don't go to the central banks for a bailout they'll come to the big going to mean are you for a bailout because the big community will hope will have the only available funds to bail out the banking system also like at these sort of periods in history it is like a turning point and you do see a lot of the elite turn to sort of which hans or you know inquisitions or very like they react the overreact and very emotional very aggressive very conspiratorial very conspiracy minded ways throughout history so it is something you say and all the conspiracy minded sort of information you see coming out of our you know our trusted institutions in the media you know now google will say for example on you tube that. that you know m s n b c is to be trusted and that's why

they push they're trying to push now more of that onto the audience rather than you know the ones that they actually legitimately believe are more real but as far as incremental men any like minded gold or bitcoin bug is concerned this loss of trust in our institutions and in each other is leading up to the humdinger a loss of trust in money itself indeed that's why big point was designed in the 1st place at a global level this is manifesting itself in mutual distrust among central banks some have repatriated gold held overseas while others have been increasing their gold holdings and what is known as the dollar is ation of the economy hungary has increased its gold holdings 10 fold for example that's extreme but most nations are at it and here's a chart of the trend in global reserves since the financial crisis right there it's

gone up and of course at the same time has also gone up no matter what sort of rating of the the deplorable people that make up the society around you at the bottom 99 percent they're the deplorable those we're told by the elite and they saw what you did they recognize what happened in 2007 to 2009 and they know and they understand and you could try to propagandize them all you want about how it was all for their own good and whatever but the data shows that they understand exactly what happened or i talk about now people questioning what is money and of course you could throw into the question what is so for alliance and what is the point of labor so was it so long ago or people didn't think so much about money as i thought about their value a society in what they could contribute. with their labor or if they're artisans of

some time they knew that they could always get a job if they were great you know the central skill woodworking or cabinet making or ironing you know they could always get a job and money was something that well you know it's nice to pay the bills but my value is one i who i am an old idea in the last 10 or 15 years that's now disappeared completely people have no self reliance and no self worth is only about are of who can game the system become a global economy of gaming digital gaming and as our friend brought pearson the crypto space says life is becoming a game were you're constantly earning power ups and you're getting bonus points right that's your just game you're playing a game all day long and that's what that's pretty much were the economy is at the moment yes but as the power center of the world the empire disintegrates and trust disintegrates this is also why i think since that period of time 2007 to

2009 you see the emergence of a hysteria around identity because people do not understand what their identity is within this new disintegrating system there it is fear people are afraid to that they might not actually understand who they are within the global economy in the global the new the new paradigm that might be emerging who knows what's happening nobody knows what's happening nobody can predict the future but we can see the past in the past is that you know our governments work for a very small set of people so who are we where part of this society or part of this economy who are we if we're if we're not part of it right even a skill like truck driving which is that it's a skill a driver an 18 wheeler i mean you tried i tried as hard to do you know got to actually know stuff and but that's all disappearing down that's almost a 3rd i'm sorry 20 percent of the economy in the united states is truck driving a truck driving related and now that's all. being automated away so now it's

another you know millions tens of millions of americans i will be lost in the existential desert not knowing what their value is what they're worth isn't being asked to play video games to survive along with everyone else wall street is a video game the federal reserve is a video game. all corporations they make most of their profits trading on their cash desk their proprietary trading desk that's a video game so if you're supposedly making food or a beverage or manufacturing or you make caterpillar tractors most of the profits come from your cash desk playing video games so video games are really the only game in town and as you said you know you try to earn power ups you're trying to work your way into the center of the game and become super powerful imprint the game pieces us a lot of in crypto space with these new tokens is about being the king of the coin and being issuing the king coin at the middle of the coin game and speaking of you know the tokens the accumulation here is russia's reserves you know kind of accumulating every year up until 20072008 financial crisis and sword they put

together a chart of imagining what china is they only officially announced some of it and it's looking very parabolic as well also since 200-720-0820 extension 09 again those who are behind you know basically writing the algorithms that are the game that is the financial system around the world in the monetary system those who are coders of this game if they're buying gold and they're buying hard assets and they see that their players are losing faith and the quality of this game. you know it could be time to basically buy some gold and buy some big court and you know i would love to see block one take some of the $4000000000.00 they raised and put 2 or 3 or 4000000000 of it into gold that would make sense i wouldn't be surprised it's a turn for the 2nd half a lot more coming your way. after

a breakdown in negotiations presidents and she may soon again meet to hash out a trade deal the stakes couldn't be higher both sides need a perceived win failure could witness the global economy divided into rival blocks and. internet world. to get up off the ground began to down. heard them frogs on the sounds of. grown man like wrestling essentially. through his. wish to do away from. the obvious or did they kind of lunge for the weapon once missed and then when it happened on tree swung. didn't hit them i never

saw any contact with. any kind of went back to where they were so the officers back here there try again 15 feet apart at this point and that's when the officer and his gun in a tree. on a. thank. you. welcome back to the kaiser report imax keyser time now to turn to michael pant port

dot com michael welcome thanks so much for having me back on x. all right michael markets are expecting up to 3 to 4 rate cuts by december your thoughts. well my main issue will want is it wasn't it just a few months ago that we're talking about 3 or 4 rate hikes isn't it amazing that people still have confidence in our central bank that they have any earthly idea what is going on in the economy got it possibility that we go from if the end funds rate they're supposedly expose a rise of 3 and a hair percent to now saying that we may actually cut rates and also the balance sheet which is very very important which was a monetization of $3.00 trillion dollars worth of counterfeiting contain we're supposed to go back down from there near chile and down closer to 2 trillion is now

going to be permanent only not it's not and stuck at around 3 and a head out trillion dollars of based on the supply so i don't know why anybody has any credibility your feet or hole in the federal reserve knowing what's going on with the economy and say what does know it's going to be economy is the yield curve and it's done the hill curve is inverted massively so you have a fed funds rate effect in fed funds rate trading at about 2.39 percent and it's 10 year no trillion 2.15 percent so in the shadow banking system which borrows money from the primary dealers and bodies in the 0 reserves and we're just back securities and all these instruments that are processed in securitized by the banking system all those things are now all those mortgages are squeezed to 0. and below so the money supply is shrinking yield here is inverted and we're headed towards unfortunately

a recession but i only say $1.00 thing. we don't want in probably many things in this interview but what the hell is wrong with it a recession really where did central banks. the notion that they were on god's green earth jim is sure that the market started there never has a down take and now all recessions are one when you write well i mean let's take a look at us the old car for a 2nd so short rates are higher than long rates and. you know tell me what it says is that banks don't trust each other because the banks know that they're insolvent the federal reserve is flooding the system with cash to avoid a credit for it and they will be unsuccessful the short rates are telling us that the banks are in fall vant my call and that part of the crisis from 2008 is about to hit ok so let's see back in 2007 i haven't dared wait for this and this is

absolutely factual so back in june 2007 the amount of so run and mortgage debt was $1.00 trillion dollars out of a pool it's 10 trillion dollars worth of us mortgages and want to ben bernanke he say about so prime mortgages back then did he tell you watch out be worried be very afraid because banks owns you was at risk he said that the subprime mortgage crisis if there was a crisis was negligible and we have nothing to fear but i'll tell you one data point. there are. $4000000.00 worth of corporate debt is rated triple b. which is just one notch above junk and below so here is the amount of the

original homes which are worse than high yield bonds with no come up and then you have jumped at and then you have will be fun point 4 trillion dollars max and when the credit markets row has in late november and december of 2018 and no issuance was made in the high heel northcott inch one to 5 percent of the russell 2000 companies are deemed to be zombie companies meaning they have to issue new to play interest on existing debt and the credit markets froze we were headed into $5.00 trillion dollars worth of defaults or some vast majority of those defaults in the high heel leverage loan interval be space and could mean we were headed for a much worse crisis then 2 $1008.00 if it understood

this they can't use an epiphany christmassy has or hasn't had time and that's why now we've gone from a less high grades so it's really impressive the fed 1st rate illustrating the belge because this was a one time emergency operation which will never again happen in our lifetime. the words coming out of your own how is that you know we noticed not using words like. up unusual events or exogamous events or chipper or events even basically admit if. such measures taking interest rates to 0 percent and here we are and universal basic income. and all these extreme measures new reading street an extreme emergency measures from the federal reserve are going to be regular practices from our central bank and even those from around the world yeah ok let's look at

a tweet that you recently posted quote when the total value of equity it was roughly half of g.d.p. a like a was from the mid 1970 s. through the mid 1990 s. the economy was able to lead the stock market but when money printing pushes stocks to become 1.5 times the value of the economy it is stocks that leave the jaideep a labyrinth on this a little bit the difference between even having an economy of a stock i have a michael american still explanatory or $97.00 the stock market drop by 23 percent on monday in one day and if you're months later it was all over with read a recession in 1987 because then it was the value of equities the financial world was a very small part of the overall economy riyad you know a little bit more of a manufacturing economy back then we had an economy that existed outside of wall street back then and you can have a crash crash there's

a way we're almost one quarter of the now you are undervalued starts was wiped out in one dollar a day and you know it wasn't there so it's better wall street but you know what the guy in main street ok well when you land the value records to equal one and a half times the total underlying income of the nation which by the way is funny because most of the income and activity in consumption of u.s. g.d.p. is a derivative of 0 free money or basically free money then you have a huge problem on your hands then that is why. donald trump and jerome powell are my only focus on every dollar until you get the start market because if you let. me sell in style events or even when i was a slightly more attractive let's just say the market lost 30 percent of its value the market is the economy it is leading the united states economy at this juncture

because it is such a huge part of it wall street has usurped main street and it's got a very just thing that and the bank of japan now on equity you know assets on their books that are greater than their entire g.d.p. a country of japan. so that's where this is adding to it out there point is that there is no underlying economy there is only money printing and the speculation now since 2008 the financial crisis the labor share of the economy has continued to shrink significantly while capital share has increased with quantitative easing i think it matters that consumers are earning an ever smaller share michael of course that's where miller the middle class the road to perdition for the middle class is very small and very well you know i heard steve moore today max on c n b sheet and student moore was actually he's one of your guy who knows what he's talking

about he was interval part of trump's. tax cut package and he was the n.b.c. telling viewers their families are should be lowering rates by even more than $25.00 basis points maybe even a 100 basis points one percent right away and his drive action now who wasn't the economy's bad for a recession is rationale wasn't that the yield curve is inverted and money supply is getting sucked out of the banking system and in us consumers about affordability is rationale is rationale was there we're missing and. asinine inane inflation target of 2 percent not by a lot by 50 basis points so so middle class is now characters even would want to one of my heroes at one time was steve moore and this individual was it not for that as

a member of the effort i went see their open market committee for the federal reserve is there now saying that shell money a strong dollar and stable prices is now somehow equivalent you know into personal inflation target as the. measures it which is core p.c. inflation but minutes if the fed was kind of cutting rates at this juncture when the stock market is one in here times underlying g.d.p. and the middle class is disappearing what would happen in many case we. exacerbate the difference between the very rich and the we're to even greater extent right now are not only you seem to be worried about that now well let me ask you something so let's say or the same of a fortune 500 corporation and you've got 2 choices there 1st choice you are going to go hire

a lot of people and are going to populate some factories that are going to manufacture stuff and are going to sell it hopefully at a profit or you're going to take that money the feds printing at 0 percent interest rate buy back your own stock and boost the price of a stock and players options and billions of dollars of the bonuses with which which choice would you take well also if i could borrow money at a lower rate then my dividend is bangor and it really pays off to shrink the share count everything is this world of order racial interest rates is worrying and distorting a hold. letter up of things around the world not just the united states japan it europe it's china. even though you were there bakeries it's whole race is now resorted to go bubble and of course if the fixed income market merits a letter in trillion dollars worth of sovereign debt around the world. is and has

a negative sign in front of it in other words center and governments are getting the job borrow money and nobody seems our problem the guy we're going to cause they're going to take it up and segment surf x. ray and that's part of the cause or report thank you max let's go there for this edition of the kaiser report with me max kaiser and stacy herbert i want to thank our guest michael ponto of bento porque dot com if you want to catch us on twitter it's kaiser report it's all next time. so you say that preexists the end of the series if we could just let josie marino walk away so we decided to treat host to a very special farewell to. the.

interesting part of the team but this time to go back to the punchline thanks for putting on sister good body. with the red carpet the only thing that i didn't enjoy was my dancing on ice in moscow my dancing. on ice. thankfully we nailed it literally there we go. you know to the 2017 the german newspaper developed published an article claiming that the european union the last 30000000000 euros as a result of its very anti russian sanctions.

particularly affected eastern europe many polish farmers went broke and even committed suicide. sometimes i'm a cancer convert or as i was of on a good time i would. put on the ground around the. room select. people and these are younger than do you have to be on the horse longer going against the dolls and on to other kind of a no harm and then let's see in the arm in the pool in different if one swung the smith. on doesn't dance with all the faults and that's what you call.

the. u.k. call delays an extradition hearing for julian a song there were 2 weeks co-founder could face up to 175 years in prison if sent to the us. the crew of an oil tanker which caught fire in the gulf of amman say they were hit by a projectile apparently contradicting u.s. claims that a wrong planted a mine on the vessel. what's wrong here it's back out the american delegation. houston the u.s. dubs target diplomacy. and tech giants are accused of sonnenfeld speech they don't like the softer you choose blue music video by a project in verity detailing the way social media interest allegedly censors conservative viewers.