they do not trust their politicians they do not trust their scientists or their 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 nations buy gold countries buy gold central banks buy gold they're buying gold arrived in gold it's making a new all time highs australian dollars spent almost a dozen russian rubles almost devising canadian dollars almost aizen euro's 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 that 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 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 the 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. something else so skyrocketing in value is benefiting. so homo sapiens as a species are becoming in to 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 psychopath 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 in them out of money printed on the amount of money in circulation at the mount of money being created but hyperinflation is

cause 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 they'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 millennium goals are into because it's native to their digital experience and so those who aren't going to have the gold or the big colin 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 punts or you know inquisitions or various 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 and 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 parading 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 can 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 re talking 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 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 when i who i am an old idea of. 10 or 15 years that's now disappeared completely people have no self reliance and no self worth it's only about are of

who can game the system become a global economy of gaming digital gaming and as our friend brock pearson the crypto space says life is becoming a game we're a 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 try and i try it is 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 new. tens of millions of americans i will be lost in the existential desert not knowing what their value is what their worth is i'm 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 the 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 that's a lot of encrypt a 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 announce 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. you know touga 2017 the german newspaper developed published an article claiming that the european union has lost 30000000000 euros as a result of its a very anti russian sanctions.

particularly affected eastern europe many polish films went broke and even committed suicide. sometimes i can't account for as i doze off on the get a moment. we'll put on the political front on the. young to. get stuck on to the kind of police think it doesn't then let's see in the. song the smiths. and doesn't dance with all the folks and that's what you call. so what we've got to do is identify the threats that we have it's crazy. let it be

an arms race off and spearing dramatic to follow only closely i'm going to exist i don't see how that strategy will be successful very critical time to sit down and talk. we had one man 3540 years old. it also destroyed in the water. some 30 fisherman well destroyed later in his nets. understood. that he's going to want to help me i shall have another man the most of my feet will stubborn and hurt the machine.

i believe that this is none of the therapy is. our charm. absurd it's really harsh things that happen in life. we. 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 max 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 how do the possibility that we go from if that funds rate there supposedly expose a rise of 3 and a hair percent to now saying that we may absolutely 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 we monetize and stuck around really and 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 so you wouldn't just know it's going to be economy it is the yield curve and it's not

in the heel curve is in very massively so you have fed funds rate effective fed funds rate trading at about 2.39 percent and the 10 year no trillion 2.15 percent so 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 and securitized by the banking system all those things are now all those mortgages are squeezed to 0. oh and below so the money supply is shrinking if you will tours invertor and we're headed towards unfortunately a recession but i only say $1.00 thing. oh you know one thing probably ben things in this interview whatever the hell is wrong with it a recession room where is central banks. the notion that they were on god's green earth diminish sure the market started there never has

a downtick 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 backings you $1007.00 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. 4 really in dollars worth of corporate debt is rated triple b. which is just one notch above junk and the lot 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 your will be done point 4 trillion dollars max and when the credit markets rowe 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 debt to create 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 b. space and i mean we were headed for a much worse crisis then 2008 it's been understood this became years that if any 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 it you know we need to start using words like.

up unusual events or exogamous events or chipper or events even basically admit if our. search measure is taking interest rates to 0 percent and here we are and universal basic income. and all these extreme measures new winning streak 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 have 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 leave 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 that there 1st me tell me even having an economy a i have a stock i have a michael good self-explanatory or 97 the stock market drop by 23 percent on monday in one day and if you're months later it was all over with really never 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 could have a crash krish there's a way we're almost one quarter of the value of undervalued stunts was wiped out in $1.00 a day and you know it was laden so it's better wall street but you know what the guy in main street ok well when you have the value refugees 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 going to start a market because if you let. me sell in style events or even one that was a slightly more protracted 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 got a very just thing that and the bank of japan now on equity no assets on their books that are greater than their entire g.d.p. a country of japan. so that's where this is setting fair 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 about to be a 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 the 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 dry action now who wasn't the

economy's end for a recession is rationale wasn't that the yield curve is inverted and money supply is getting stuff out of the banking system and in us consumers about affordability is rationale is rational was you know 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 cured to even a we're going 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 to 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. measures it was your score p c e

inflation but minutes if the fed was kind of cutting rates at this juncture when the stock market is one here times underlying g.d.p. and the middle class is disappearing what would happen in many case would not. exacerbate the difference between the very rich and the worker to even greater extent right you 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 their 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 than my dividend is banker 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. oh streams around the world it's not just united states japan it's europe it's china. even though you were there back with these prices now which are in an echo 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 summer and governments are getting the job borrow money and nobody seems our problem and i are going to comment they're going to take it up and segment facts wrong on this part of the cause report thank you max most are here for this edition of the kaiser report with me max kaiser and stacy herbert i want to thank our guest michael ponto of bento pork

dot com if you want to catch us on twitter it's kaiser report all next time by you'll. be able to. feel welcome you. don't. i'm not a real world will know well you know but what if in your ocean cruise it. was a march. up on the border was to be with the. u.s. . or

the. but i wouldn't tell i don't know what the local was. based on what. you would you would. isn't she. to do with. what politicians do something to. put themselves on the line to get accepted or rejected. so when you want to be president or injury. or somehow want to be rich. but you'd like to be press that's like the full 3 in the morning can't be good. i'm interested always in the waters. there should.

i think you know cubans all over the world you know all all very similar you know west the west in those did not invent democracy you know there's democracy everywhere in world history in india in china if you go far enough back creating inclusion in some of the union the you know after 990 was not a matter of adopting the u.s. constitution it was a matter of finding what works in the cultural context. i . thought that.

the u.s. ramps up the pressure on. iran continuing to accuse the country of attacking oil tankers in the gulf of oman we look back at washington's track record of claims against so-called rogue states. hong kong postpones a bill on extradition to china after a mass protest movement that has received global support including from the u.s. . and several commercials are canceled in britain after a watchdog rules that gender stereotypes are harming society. the pandering to female narcissism in advertising is appalling and part of that is denigration of men we don't want to see stereotype visions and visions of cleaning out.