welcome to the concert for i'm max kaiser do know about the links that go to the stories are at kaiser report dot com we listen to you. like that all right. yes we cover many headlines on kaiser report and port dot com you can find links to the headlines i get asked that all of the time and for example here's our 1st chart why we are likely to see a 4 decade bull market in bonds like this ever again and that's 40 years of ever declining yields ever rising bond prices well that's my life you know i started on wall street 40 years ago and been living in the luxury of life of ever cheaper money ever since literally not having to work a day in my life because the assets bought it 40 years ago gone straight up. and it's gone up every year since then just about and

a bit of all the dotcom boom and the crypto boom of the big boom in the stock market boom so this is been a remarkable period for the wasn't called generation jones the last of the baby boomers born in 1960 s. i was thanks to paul volcker who in 1980 you know started to you know stuff about inflation with a huge surge in interest rates and it's been basically easy street ever since easy money has resulted in many things and we're going to go over that in a moment you and i witnessed some of it in detroit where we were last week where you could see former greatness former beautiful buildings abandoned industry abandoned creation of wealth abandoned because you know you and i can remember a childhood. any you know any person entering the market since then well thank god it must been horrible back then right but our parents had amazing jobs they got

paid well we they were able to own a home and buy a home with one income that they were you know more community. morse university didn't cost your life you know so here we've had this rolling over of debt over and over all the way down as we talked in the last episode there's been an ever declining utility of debt part of this has been that we need more and more debt in order to grow this fake economy this economy because remember if you look around there's not much industry left here so what if we've been building more piles of debt and i'm going to turn to some of these headlines for the past week that i've observed to show that you know most people on bloomberg and c. and b. c. will tell you we want lower interest rates this is great for the ordinary american right most americans live paycheck to paycheck no matter how much you earn getting

by is still a struggle for most people these days 78 percent of full time workers said they live paycheck to paycheck from 75 percent last year according to a recent report from career builder overall 71 percent of all u.s. workers said they are now in debt up from 68 percent a year ago so you see debt piles are climbing. of course this is what the fed wants with the lowering rates they want the ordinary american to cripple themselves with debt to make themselves have fewer choices in life because you've got to get that paycheck to meet the minimum payment on your credit card debt right so 40 years ago the transition from industrialization to financialization so people had jobs and the economy reflected a workforce that would earn discretionary capital that they

would spend on consumer goods that were made in america then you want to financialization all the jobs one overseas is outside of the states and the only real money that could be made is. on interest rates spread interest rate arbitrage financialization wall street to zation commodification and so it gave rise to a group of ruling class that had access to the cheaper money so those with the access to the cheapest money became the richest and then if you didn't have access to cheap money loser 0 percent borrowing costs you would end up in the bantustan of a ghetto somewhere that's the interest rate apartheid that's been going on for 40 years you mentioned detroit interestingly enough fascinating we've just in detroit and we're also just in san francisco you know here's the tale of 2 cities detroit pick this up by the bootstraps spend money on itself rebuilt downtown and san francisco the people who made all the money in san francisco decided not to do

anything for their hometown so they're sloshing around in human feces and needles all day by choice don't think that the people in san francisco that are not walking around in poop by any other factor but their own choice going back to this chart we've had 40 years of declining yields rising bond prices so this has been a bond bubble bonds are at 4000 year highs actually so we have an extraordinary situation which most people think is normal but it's outside 4000 years of normalcy of normal rates and normal history so you during this period were also a magician in times square so you know how to create illusions and distract and divert your audience and order to conduct this wealth transfer in this case that's the magic trick that they're they've conducted during this period of time so back

then i remember when my mom bought a house you put 20 percent down you didn't have to put 2 percent down as you have to do now and that's created the illusion that. ok so now i work in telemarketing rather than building cars lay and manufacturing wealth like i used to but i'm able to afford this house well while household income has grown over the past decade it has failed to keep up with the increased cost of living over the same period so you know everything is online all the algorithms run all of your data so do you think that you're ever going to get more than 100 dollars a month to put away because the algorithm knows the universities know that they could take another. $50.00 out of there as soon as you earn $150.00 extra they just take you 50 the health care industry the insurance industry. they have all your data and they know how much they can take from you and it's precisely measured soon

as you walk into a casino they know how much they can take from you right that's the american economy today the financialization it's become the casino gulag and all the data is in the hands of the pirates who take nickel and dime folks to death like jamie diamond became a billionaire nickel and dime ing people but even worse and more pernicious would be like a wells fargo got frustrated at just outright stealing money and the gaming people in the casino good luck and just resorted to from people's accounts of millions of people just their money ripped out of their accounts from wells fargo and warren buffett the biggest shareholder laughing yeah but as you know you used to work at banks and you say all the time that your compliance officer says just do it because we'll just pay a 5 later down the road but in this this quarter our options you know that we get paid we'll make huge money individually so the bank the shareholders will pay a fine if. the compliance officer is the best because all they do is sign their

names through fraud all day in the they get these huge bonuses christmas every year from soakers and bankers again like they grow them knows how to take every single individual bit of you then you have the propaganda arm on c. and b. c. bloomberg and m s n b c and for example like what do you think about obamacare well they basically confuse medicaid expansion of medicaid which is government run health insurance for poor people so they'll they'll confuse the fact that obamacare expanded that. and with what obamacare actually is for the ordinary american so anybody making over $4050000.00 a year so even those making over 6 figures according to this data so they struggle to make ends meet the report said. nearly one in 10 of those making $100000.00 or more so they usually are always live paycheck to paycheck and 59 percent of those in that salary range said they were in the red so again like you're making 100000

say 30 percent goes to the federal government for taxes so that $70000.00 so you have 222-5000 obamacare and that's with a $7000.00 deductible so you have to hand over essentially $25000.00 to these insurance executives but you can't use their product because well all of the the the the loopholes they have and the fact that you have a 7000 dollars deductible so again you always are poor it doesn't matter as soon as you earn any money it's that's why obamacare prices keep on going out for those who don't aren't subsidized it's just like they needle and needle you and take every single dime you're ever going to earn so there's no it's like calls goal is sort of like john galt right like you know like why earn another dollar because this is going to be taken from the insurance executives you know the lifestyle between someone making $5.00 a year and so on making $100000.00 a year in america are about the same if you're living the same quality of life yeah

proximately but you know this is amazing how obamacare is basically getting middle class people to subsidize health care for lower class people the government forces middle class people at the point of a gun to basically to pay this extortion to obamacare insurance companies and we're going to give that as free health care to the other folks now and they're extending that into negative interest rates right so if denmark for example they pay you to take out a mortgage they take the money from someone who is a saver so the saver who puts money in the bank instead of getting 2 or 3 percent on the cash they put the bank they are penalized 2 or 3 percent and the person taking out the mortgage is given. 2 or 3 percent in the form of a negative mortgage rate so again they're having the savers subsidize the the the losers so it's the losers finally the meek shall inherit the earth that's

right in the bible the no savings no job no work ethic no morals no ethics they win in the end in this in this world in a fee system it encourages toll collectors you're either a toll collector or you're paying a toll that's what this situation is in new york for example i just read that one in 3 new yorkers are on medicaid so that's the free government run health care system in new york. technically by law it's supposed to be capped at 3 percent price rises per year for medicaid but they introduce some loopholes and it's allowed to be 6 percent increase per year from the taxpayer to the health insurance and health racket industry hospitals and doctors and stuff and pharmaceuticals but in fact this year 2019 the prices are projected to go up 15 percent on medicaid spend so is draining from those people who are paying those obamacare

unsubsidized raids they actually have to pay those rates where they have $7000.00 deductible so they can't use their health care they're paying $25000.00 a year the taxes are going up to pay for this other part of the racket here where it's just draining more and more of the tax revenue 15 percent a year because of course obama did not introduce any caps there's no regulation on spending at all so it could go up and up and up and up and up until every single last penny you possibly could save so you got to keep on running faster and faster to stay in the same spot and lower rates make the situation worse it's like the economy blew a tire and trying to answer is to blow the other 3 remaining tires. how that makes economic sense well it doesn't and work it the timing is pretty bad because you know he's setting into the 2020 elections and he's going to looking at it every

single president is a. pyramid scheme so it doesn't matter but final headline lower mortgage rates aren't boosting u.s. housing the residential real estate market is less affordable now than at any time since before the financial crisis so 0 percent rate we've driven all the way down to the bottom but at the end of the looking glass at the bottom when you're sinking you realize that there's no wealth creation there's no real jobs there's just passing the buck and you're either a toll collector or you pay the toll everybody's paid the toll and they're broke now and the toll collector wants more money so what are we going to do but elect another buffoon it doesn't matter if it's strong for whoever comes next or by don't brioche as marie antoinette would say hey we've got to take a break when we come back much more coming your way.

need to call tony i don't know. i'm one of them but i think ended up getting one when there's a real body. of an innocent. victim i don't want or i can just let me as i knew she knew that i got him with me about it yeah i am kind of the little room kid gets killed and how did you feel bad

when i say you may have to move out of one of the one that he i want to go to before i don't know. welcome back to the kaiser report i'm ask eyes are time that i turn our conversation with well for a tour of wall street dot com wolf welcome back thanks for having me back max bonds bonds ok austria has got a 100 year bond it has soared nearly a 100 percent in the past year argentina there are 100 air bond has collapsed 50 percent what's going on in argentina wealth well argentina is doing what argentina switches it's getting ready for another default and. you know.

then i think there should be fault in i think argentina should go to wall street every 2 or 3 years and say ok we change we have a new government now we're going to pay this back and we want to borrow more and then issue $20000000000.00 in bonds and then a year later asked the i.m.f. for help because they can't deal with this 20000000000 dollars dollar debt and that i may have lend some another $30000000000.00 and or $39000000000.00 at this point and then you know you get another government coming in saying no we can't pay this debt and we're going to default and you know this is hard kena has always done things i think investors need to be just. taking through the wringer on this and so have learned the lesson you just don't ever lend dollars a year owes to argentina and that's still a lesson there should have been warned decades ago and you know they they see the 8

percent yield or the 10 percent yield or whatever and they buy this arjan time argentine debt and you know they trade out of it a salad job on fun and then make some money the 1st time around and and then you know 3 years later that dad starts selling off because reality comes home you know and this is a cycle that argentina goes through time and time again and. i think as long as investors are willing to give argentina dollars and euros argentina should just go around and default on the us every time until investors finally give up yet there's no is really no other help i mean argentina has default it's all many times it's just part of it's operating procedure in there's always a new generation of investors that thank god this time it's different we're going to make some money on this and the 1st year they do it in and that's alan to somebody else and then you know to some bond fund in some form a and and when it's sitting there and. chariots and. you know you have.

a government that came a promise to market oriented policy a few years ago and they went on my bar and binged barton in dollars and euros because she can't bar and argentine pesos you know that it's just a horrible garbage currency it with right now with with 50 percent interest on it in a against the value and crashed on a daily basis you nobody wants to lend you money in pesos they have to borrow and dollars and euros and yen or whatever hard currency they can borrow and and then they can't buy it back and so that's why they did it in a year after they went on this barring binge they already had trouble and they asked the i.m.f. i helped i.m.f. came in with a reform package that said he got to make the central bank independent a little bit more independent you know because it's part of the finance ministry it was part of the finance minister it was just print the money and you got to make some other changes and the government said ok we'll do that and that's right now $39000000000.00 from the i.m.f.

so they've got you know the money they raised to the bonsai got 39000000000 from the i.m.f. and now the government is. the people have voted in and in a primary election and expressed very great dissatisfaction with this government's policy and. giving for an end as from the end as government. very high likelihood of coming out. coming out ahead of the october election which will change everything and. it's just no more just part of the operating procedure in argentina and and as long as foreign investors follow this stuff i think argentina just going to keep doing this while i love to repackage that 3 minute answer in tonight's rap song. yes play it over and over again all over the world it summarizes our global economy and i'm still all that i remember when i was working on wall street in argentina 1st went bankrupt in the eighty's you know and that was an exciting time you know wall markets rates are near all time lows and yet

sales of homes continue to decline so are central banks pushing on a debt string at this point can lower rates help the debt saturated shrinking income consumer right so you know. having reached the end game you know the stimulus of lower interest rates like any heroin or coke addict or junkie financially run out of stimulus because you're dead so he at that point but in some markets especially on the west coast or in some markets in the east coast your prices are really high the low interest rates are secondary now yeah i mean you know when you pay $1700000.00 for a median house and meet you know houses in a small little rink you think how some moreno. you know you have other problems because now you need to have some $100000.00 in income to live in that kind of

house and we have that kind of income do you really want to live in a median house you know don't you want to i mean some nicer and and so you have. this problem or by are i'm not sure anymore that they really want to do this and. mortgage applications are rising and not they didn't spike or anything but they're up a little bit from what they were last year at this time and and. so those some increased interest from from home buyers in the united states foreign investors have largely been scared off and we've seen that in a number of state appointed now and that's that has a big impact like in the bay area and in some of the expensive areas where foreign investors. and. you know invested handle it ok let me jump in here for a 2nd sun san francisco you mentioned hey you know they tech billionaires want nicer homes but you know talking about possible endgame here let's talk about the we work i.p.o.

there documents show that they're losing $5200.00 per customer which is $28.00 times what goober loses per customer. so in other words the business model of san francisco driving house prices are to lose as much per sale as possible and in the case of we work they live $5200.00 per customer and so is that is there going to be a day of reckoning there i mean. eventually if you're generating exponential losses at in fun i doubt it's going to be hard to sustain that for buying multi multi $1000000.00 homes all thinking around here is that. we're approaching the end this is bigger than 1909 was. reset will be bigger in locally yeah the nation might not feel it that much but it

will be a local thing for sure and you know who are these companies that keep burning cash companies that are 10 years old they have thousands of employees and have billions in revenues you know they keep burning cash and it's ok for a start up to bring cash but these are not startups you know these are companies and the business model they have is just expand expand expand and no matter what the cross the new investors have been funding this notion this is are no longer willing to fund this these companies are going to run out of money and they're having to cut back and that's already that case i mean we hear in that now constantly a different job. or it's else who are you know that unofficial hiring freezes in place and from companies like that that they're cutting back their projects and have bay area so far from an architect we've kind of the same thing you know it's a. project to have 5 faces you know the finishing phase one and there's long phase

2 down and then canceling phase 3 and surviving and so this is not happening and. you know we're i think in. the bay area we've sort of. into that point or you know it can't go on like this for ever read that 1990 dot com bubble inflection point nasdaq lost a quick 5 trillion dollars i was workin on technology at that time you know wealth san francisco has more billionaires per capita than anywhere on earth but has a homeless population to rival any 3rd world country considering silicon valley is also the epicenter of virtue signaling you know they love to talk a good game we just came back from detroit where the quicken empire they've put 56000000000 into downtown and i don't see any human feces on the street there's not a homeless population in the downtown detroit they reinvest in their own community because they was an act of really self preservation by helping the community how

come san francisco billionaires are so greedy and shortsighted and virtuous signaling idiots that they prefer to wallow in human feces then to clean up their own mess wolf big differences between detroit and servants is going to the cost of housing you know and in detroit it's one of the lowest in the country in terms of major cities and. oh dear friend. the bay area in 2009 and and a $70000.00 in gas 4 for a huge loft in downtown detroit. $70000.00 buys doesn't buy a garage and it's got so. detroit has lost a lot of populations in a very different. phase of its life for those of us employed but won't go off the road to have to incomes the house prices our power passu is a wall street term in other words you've got to want a smaller but this scaling is the same amount of wealth of income house prices as

you could you could map that is safe for all to the same the question is not relative house price. vs salary the question is why in detroit do highly successful bill billionaire corporation choose to help their community where in silicon valley they choose to literally death akkad on their community somewhere that is a little exaggerated. and so i don't really have to wait need kneedeep throughout the season even when there aren't some some streets but they're not everywhere but it is a huge problem with homelessness in san francisco's one percent of the population it is a huge problem there were most of them a polite nice people but they're just just crazy the homelessness problem here and and you're right it does it it does try to deal with it has spent half a $1000000000.00 on it and it's just getting worse. now to go in or out of time but we'll get pick it up next time i get your point let's say goodbye thanks for being

on the cause report thanks for having me max that's going to do it for this edition of the kaiser report with me max kaiser stacy everett like to thank our guests all threats are of wall street dot com he's got an excellent podcast to try to catch us on twitter it's kaiser report or kaiser report dot com so next time. why a paradise with some ground and into the experimentation field but i agree cultural chemicals we know that these chemicals have consequences they are major here tens there's no question otherwise why would 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 boys in hawaii and it's people. so one has to ask the question whether there is a form of environmental racial tension going on in hawaii whether these companies feel they can get away with it because the people have less political power. so what we've got to do is identify the threats that we have it's crazy confrontation let it be an arms race is often squaring dramatic development only really i'm going to resist i don't see how that strategy will be successful very critical time to sit down and talk.

as an officer of the road to get up off the ground after begin to pay down the. democrats on the sounds of. the grown man mislead essentially. through his return. to push through away from the officer. of his group. the obvious or did they kind of lunge for the web in one smiths and then when it happened on trace one as observations didn't hit them i never saw any contact between the 2 any kind went back to where they were so the answers back here they're try again 15 feet apart at this point and that's when the officer pulled his gun and he bit on 3.

from crisis talks to military deals the presidents of turkey and russia meets a list sidelines of the 2019 months or a show taking place near moscow with discussions ranging from syria to the purchase of ground to russia. also coming up in oklahoma judge finds the pharmaceutical giant johnson and johnson guilty of fueling the u.s. state's opioid epidemic and causing a surge in drug related deaths. johnson and johnson will finally be held accountable.