you know what except for perhaps the mightiest army that is never stopped and threatened the earth and that's what we have now so that's why they could go they think they believe they could do this all right i mean it's a good point that up until 971 there was always at least one currency in the world that had a gold backing you know the brain was agreement that was after world war 2 set the american us dollar up as a currency that ultimately had a settlement in gold and then that was stopped in $71.00 then you had c.i. currencies or franc the other feet of currencies and that's how you end up with a global ponzi scheme and you had as nomi prins writes in her excellent book collusion about how the central banks then were no longer competing with each other in the mercantile a system but became their coconspirators in a global monitor a system where each bank was simply passing the hot potato around the world and there was never any moment when interest rates are not being cut over the past 40 years 45 years us never happened one country may have raised

a bit but another country would have dropped by considerably more the net result is now the goal of the globe is their debt to g.d.p. for planet earth is approaching 350 percent well some say that the us dollars bank backed by oil so it always has been backed by something hard. it was liquid oil the other thing that we're seeing however is as michael hudson dr michael hudson an economist who used to work at chase manhattan and when he wrote his ph d. he told us that you know he he told his bank and he told his professors that actually unlike what you say banks don't actually lend to businesses they lend for mortgages so our entire economy our time financial system everything is backed by mortgages so we're going to get to that because this is. remember when during the french revolution we had the currency backed by a property of the confiscated catholic church properties so what do we have there

but hyperinflation as people demanded the prices keep on going up right well here we have denmark which denmark by the way is one of. the most household indebted of all o.e.c.d. nations so their debt to income is 280 percent but denmark's 3rd largest bank is now paying people to take out a mortgage what this means is that if you buy a house for $1000000.00 and pay off your mortgage in full in 10 years you would pay the bank back only $995000.00 no mortgage payments would be due between the purchase and payoff date so effectively a borrower only has to repay principal with a small discount guaranteeing that the bank loses money on the loan and that's a negative point 5 percent right and again what's amazing and ironic about this is that the bank doing this is don's bank and that's not this is actually just bank

i do have a report from don scott bank that i'm going to get to but this is from bank it's the 3rd largest bank. bank is the largest bank in denmark right and you know referring back to that film we did about iceland and i think those 2008 about the ponzi scheme their bank was the one who initially put out this report suggesting that iceland was a ponzi scheme about to implode and now in denmark as you're pointing out here they're using the exact same technique using the hyper leveraged mortgage to real property assets as collateral to create this enormous ponzi scheme so the negative interest rates are a reflection of a ponzi scheme not as economic policy and you know you might end up having 0. mortgage in the bank paying you half a percent a year or percent a year but let's keep in mind that the value of the properties of a job 50607080 percent that's not

a good deal again let's go back to the fact that we have this system that is unique post $971.00 all fiat's but at the end of the day did they have to back it by something whether it's the military whether it's oil whether it's property and in revolutionary france when they had property that asset not backed by property but basically the arena terra followed because people like it went totally mad once the whole thing collapsed here you have the same thing. and it's also similar to 1933 when the u.s. started confiscating gold because we were in the midst of a global great depression we're having the same sort of currency wars it was beggar thy neighbor policies here it's confiscating wealth because how is the bank paying these speculators essentially to buy overpriced housing overpriced essentially especially because of their incomes which are not rising so how are they doing at

but transferring it from savers to these speculators and here's the quote from the chief economist speaking of iceland of course we spoke to the chief economist at coutts thing bank and he had an explanation for why iceland this tiny little nation of what like 300000 people was buying up all of europe major income producing assets because he said they were 3 times as mighty that the workers were 3 times more productive than any other european worker or even the the dutch or the germans or the finns or anything right so here is that they're economists from a bank which is offering this mortgage is another chapter in the history of the mortgage he says a few months ago we would have said that this would not be possible but we have been surprised time and time again and this opens up a new opportunity for homeowners impact. will terms the negative rates will act as a subsidy to the repayment and the repayment portion will become smaller and

smaller as the debt is reduced he said yes i hardly understand it either in fact i said it can't happen but we have figured out how to make a negative rate mortgage. ok right so as you point out similar to the gold confiscation of the thirty's this is another wealth confiscation scheme in switzerland and i think it's u.b.s. if you have a large sum of cash at the bank they charge you a negative 3 quarters of one percent to story or cash at the bank it's a negative interest rate so the bank is taking money out of your account every year to tune of almost one percent they don't pay you to have your money at the bank they take money away now with a negative it mortgage that money is going to a mortgage buyer so they're confiscating wealth from savers and they're giving it to property speculators because the banks of alma's made their bones in property lending their balance sheets arsed are heavy with property and if they were forced

to mark to market the value of their property they would all have to declare insolvency so they clip keep their fee stream going they are engaged in guaranteed property loss mortgages your property will lose catastrophic only with these mortgages because it's a $3000.00 ear bubble at the same time your savings are being confiscated by negative interest rates at the bank so ok switzerland and denmark are 2 different countries so they're not doing it in conjunction but as this plague of this ponzi scheme becomes bigger all banks will coordinate because they're all colluding as nellie prince writes in collusion well in terms of beggar thy neighbor this is the problem globally now is under beggar thy neighbor some countries actually produce the manufactured and created things like most countries did and they have their own a calm. i mean they were competing with each other now it's one giant global ponzi scheme where all of these contracts all these feeder currencies all these

derivatives reference each other and nobody knows where it ends so they're all engaged in this. this crazy i mean here is the chief economist we don't know how we did it but it's still this working here you know also you look at the fact that globally it's a global fee out currency system backed by the u.s. dollar and you see the advantage to that versus europe because europe can't print like the united states can so here they have to in europe they do have to resort to wealth confiscation so the negative interest rates in europe are driven by the e.c.b. 1st who drives those sovereign bonds negative and then forces that pension funds to transfer their wealth to these negative yielding bonds but back to the bank this is a report from november 28th 2018 and here what is what they said danish households are resistant despite record levels of debt they are accused danish households have one of the highest gross debt levels in the world however that is only one side of the equation explains banks private economists luis from hans and he says standing

at 280 percent of net disposable income no other o.e.c.d. has more indebted households in denmark however that is only one side of the equation as high debt loads are balanced by large assets he says you know the property like this is collateral to leverage a system enormous ponzi scheme denmark is the new iceland ok that's almost a certainty at this point we're all the new eyes and canada australia new zealand mojang kong all of these nations have it's all there all over lying just as the revolutionary french did on basically and this is what we have is a global ah sing out of infinite regress all right well much more coming your way after the break not go away.

you know a little bit out of it in florida a little. so what we've got to do is identify the threats that we have it's crazy for indication let it be an arms race is often very dramatic development the only place really i'm going to resist i don't see how that strategy will be successful very critical time time to sit down and talk. why a paradise with some ground turned into

a round the experimentation field but agricultural chemicals we know that these chemicals have consequences they are major irritants there's no question otherwise why would that the chemical company workers themselves be geared up and suited up locals attempt to combat the on regulated experiments that often in day you have many of these people one foot into the biotech pharma and the other foot in the government regulatory bodies this kind of collusion is reprehensible while the battle goes on the chemicals continue to poison hawaii and its people so one has to ask the question whether there is a form of environmental research going on in hawaii whether these companies feel they can get away with lives because the people have less political power. you put them so. they get accepted or rejected. so when you want to be president

and you. want to. have to go right to be close as it was before 3 of them or can't be good get. interested in the waters of. the ship. in this community there are people who believe that it's ok. it's really hard there are no jobs and you see that i've got kids that ask and as a parent. i can come up with lots of arguments and there's a lot of conflicts within the games and between the teams most of the conflict i would say throw the balls around money and most of them money is made. close one on each of those he knows each other is good because the state of california alone

makes $6000000000.00 a year of the prison complex just to get some 20 a life where. you don't care and. so you don't care about anything. welcome back to the kaiser report i'm nice keyser time now to turn to karl denninger of market hyphen ticker dot or car welcome back thank you max all right as all is well and things get into an area that nobody seems to really understand we talk to karl denninger who seems to figure it all out and give us his latest on the news happening around the world karl we're 15 trillion dollars in negative yielding bonds in europe this is recently been climbing at a rate of one trillion per week is this anyway normal what should people understand is happening karo. forced inflation i mean or what is inflation it's the

destruction of purchasing power right mean that's that's the definition of it so what is what is a negative yielding bog so forced inflationary instrument if you bought it you're guaranteed insulation in your moto the negative you. right now. is it part and parcel of what could be called an enormous bubble in the bond market now as people focus on the yield part but if you look at the price part of the bomb the bomb price trading at multi 100 year highs it's even trading a multi 1000 year highs and that same sipping the most overextended bubble busy in any financial market car already thank well course i mean the reason you buy a negative usually on yours is obviously not return your principal because you're not going to get it all back you buy it because you think the price will go even higher and then you can sell it to some other soccer but that means the same to you

it's going to go even more negative just simply kind of delve into this inflation and deflation if you have a sovereign bond with a negative coupe on that as a say negative interest rate you are in fact destroying capital which on one hand you could say is deflation but. how do you help walk us through the the definitions of these 2 words as they relate in this instance the reality of how monetary process actually works as opposed to what the joy impose of the world was like you believe in the lead guards and everybody else druggy. is said if a government is issuing more insolvent. then their g.d.p. is expanding in nominal terms so for example if you have a 3 percent g.d.p. expansion and you have a super census. you are in

a one percent cisco inflation rate it's just because do you are issuing more debt and more money into the system then your economy is growing so in real terms the consumer who the person who is using those funds is losing money every year. if you don't have negative interest rates on those government bonds what you're socially doing is creating deep excess space for the government to run that cisco deficit is just part of the same scam of running deficits in excess of g.d.p. expansion begin with wish nobody in any civilized nation should allow to happen to be an instant revolt when it occurs because it's test on a scale of that differential from everybody in the economy but you know if you let a tool or to read degree you know you would happen to greece right they ran huge fiscal deficits in excess of g.d.p. it's ultimately people who wrote their hands and said ok enough of this. in

everything all came down crashing around their ears so to try to prevent people from having that reaction do the e.c.p.a. and then a j z g b and then these other nations are going to this other mechanism for a look until it doesn't just like it did in greece in italy and then in spain all right very good now count me out economist an economic historian dr michael hudson if there had ever been negative rate seen in history he said not to his knowledge and he's gone all the way back to the bronze age and never found it so it's quite an unusual development what does the future look like if the entire world go negative in this way carl you know i don't know that anybody knows. if you asked me this 10 years ago i was said this isn't going to be able to happen because you will sell them. but obviously that's not the case we have all these trillions of dollars worth of them and people are buying them. but again i think the real answer is that

we're seeing uses in the longer dated instruments and the reason that they're being bought is because they're not really bought they're used as trading it is trading vehicles so you body a negative yield in 10 year bond and essentially what you're doing is betting on the come to yield on the next one is issued will be more negative and therefore busy is a the price of the one that you bought will go up and you consult make a profit it's it that's like any other bubble you know if i if i buy peace of course a real estate not because i want to build busy cars in that building but because i think that the price will go from $5000000.00 to $7000000.00 and i'm expecting make absolute dollar capital gain on the transaction and that's the entire motivation for doing it. you know that's sustainable right up until the 1st handful of people buy the $5000000.00 building and find out that when they go so they only get 3 all right so there's kind of 2 dimensions to this there's the vertical frog what you

can look at interest rates and then there's the horizontal frog which would be a maturity date and on that score we've got a proliferation of $100.00 arab ons austrian 100 year bond store and 80 percent the past year. you know the question is has time lost value or is the future really looking that bleak that far out caro yeah i think that the reason for extending maturities like debt is that it allows day. you know buy it today and expect do you want to be more negative tomorrow to go on for a longer period of time it was let's face it the easy gap between the actual cash value of a bond and the discounted cash flow value narrows as time of maturity gets close and right i mean that's that's just where bonds work. saw the usual 100 year bond or a lot of time for that game to play out the. the problem with doing it from

a sawyer or your view is to just tell if those yields ever go positive goes up dramatically and so you know somebody's got an obligation interest through a period of time and while i can try to buy them back. at what price right let's talk more philosophically for a moment here still on the surface the g.d.p. and stocks are look you know relatively fine how much of this is about fear of a major paradigm in power shift the decline of u.s. power and perhaps also the end of the current global currency grid a so i guess the question is underneath what on the surface looks to be one set of reality the g.d.p. numbers the stock market underneath there seems to be brewing a potential paradigm shift and by that we're talking about. the whole fi

out currency grid because everything you're talking about right now wouldn't be possible all in the us we had a global economy that worked on currencies whose value is based on reference to other fee currencies so you had this you have a system of infinite regress where the euro is valued based on the dollar value based on the yen based on the pound there's no actual underlying you know for example a gold standard so but are we are we coming to spend a 37 year bull market in bonds with that neo liberalism sense reagan and thatcher are we out to an inflection point on the verge of a major shift a major paradigm shift and a bit of a philosophical question when you think oh oh. i think we're headed more for a major sort of collapse in sorts in net we started out with this there essentially after world war 2. america was pretty much the only manufacturing power

left in the world we blew all the rest of them up and so we had a tremendous advantage not so much because we were better named by else but because we're the only ones that still had any factories left. so as of now got rebuilt. we had a lot of oppression to the 1960 s. by the federal reserve did its part of why they thought they could get away with it over the last 30 years or so is that they did it 150 s. they forgot that when they got away with the 1950 s. the reason they got away with it was. everybody else was blown up it's so as we've gone forward over asians lobbied governments to do things they give them advantages that they could not or wise have in you know it seems we've seen a some both ends of the curve in the labor curve on the low end you have sleep 1000000 plus illegal immigrants in this country who are here specifically because they can be abused by employers. and that lowers their costs ok on the other hand

you have the actual beholders who it certainly appears the government's logical atlee argued that this was a diversity operation when in fact what it really was was suppressing wages for people with a lot of skill and a lot of ability so you have a sleaze on both ends of the bell curve of human capital. accrues to the top 100 to one percent and the government does this and goes along with it because it wants to be able to spend in deficit and the only way to do that is just lost all sides are wise if you have to pay computer programmer $150000.00 a year because that's what the market demands for that skill instead of $40000.00 you get instant wage push inflation and reach the law and the side can ignore it and so we have to prevent that from happening so what are we going to do we're going to bring in a bunch of indians on each one b. visas that makes 30000 dollars a year to live 6 in an apartment and so this has been going on all over the

developed world we claim there's a chinese miracle there is no chinese miracle we just offshore in the pollution to china and hot sun. you know employs children threatened someone else to put nets up around their buildings because people get so just fawning over the working conditions they try to commit suicide i mean it's so point just grates ok and massive what we see now is it almost are getting to the point where they are literally putting out negative interest rate on as a way to try to extend the global one more target play well you know you can do it for a while but i have a soul we just will stop working and i think we're getting to the end of that right now to get back to this inflation point we're talking about inflation the existence of inflation which is everywhere except wages right south this is the miracle of the 21st century is that financial engineers have engineered a way wages in their economic models and that's part of

a part of the problem we have about 30 seconds left on your thoughts on gold central banks have begun buying gold and greatest amount sense we're on the gold standard we've got about 30 seconds where you think it's well they're doing an awfully good job it's busting you know price signals but if you look if you want to play a bubble you don't want to be a go go play ball you want to play common stocks that's what the data says i just don't know what it crashes and where it goes i don't know if you're going to see gold go up in price all right fair enough well we're going to have you on for a 2nd segment to pick your brain some more i were there at the karl denninger headquarters i like all the screens in the background very reassuring thanks for being on the cause or report. thank you all that's going to do it for this edition of the kaiser report with me max kaiser and stacey arab i want to thank our guest carl denham juror of market hyphen dot org if you want to catch us on twitter as kaiser reports and i stand by a. good

move for the suitable to sleep for. my little course on the syria. rolls going to say the board of business with the most into it will be. listening with. a lot of slow slow slow slow slow motion i am.

ok see that because the way that nobody else busy to look at the model you put is diplo it's most of the it's moved to shows just the fluid so almost. new when you want. to. join me everything on the alex salmond show and i'll be speaking to guest of the world of politics sport this list i'm showbusiness i'll see that. cast calendar is dark alfonzo any longer and there's changing to a change dart served. his 1st words were added i will see you're a challenging post you've got 2 years to live.

i have no doubt that what happened was scriven on. the sites concentrate market is a $1000000000.00 industry these companies have a huge financial motivation to sow these problems there are numerous stocks showing that doctors work keen to test facts right concentrates right infectivity on that patients won't give them doctors the wrong stoplight. term the stuff why they would keep going through security procedures day to day and people still die and i'm always question or so i tried being allowed to leave when so many have. when lawmakers manufacture consent instant of public wealth. when the running clubs assume protect themselves. when the financial

merry go round lifts only the one percent. that's not doing all middle of the room signals and. doing. real news is brutal.

ministration. reauthorize a. surveillance program. u.s. release to seize an iranian oil. supreme court ordered its release earlier this week the vessel was a british royal marines in the mediterranean last month. and the family of a young girl blocked from joining one of germany's most famed boys'. discrimination cases thrown out.