the play of all the elements that led to the french revolution using financial engineering and securitisation and derivatives to debase the currency and the currency is being debased well you reach an end point of how much the value of the property can go up and with the asset not the french people demanded they print more of these astronauts so that the property prices can continue to rise because they didn't want them to go down so we have that global situation right now it did it was able and possible because we went off the gold standard in $9071.00 at the same time it wouldn't have worked without the fact that the boomers hit the right age they were entering the workforce at that time and that was a massive population so you could create a ponzi sort of scheme here's a headline to prove my theory that what we're seeing right now is a kid in to back at the assoc not in the collapse of the asset not in the strife

that followed the reign of terror that happened here in france banks are now referring people to food bank to help them pay their mortgage this is in australia so it's called food bank south australia has been approached by banks tree for their clients to the charity in the hope that it will prevent people from defaulting on mortgage payments not let them eat oreos but let them eat food bank this is a real up to me moment in another replay so it's got a couple of almost verbatim replays of the revolutionary times of france so not only are they collateralize ing property as you point out it's no fat is nothing reinvented here it's all property backed and now instead of letting them gauge slices of brioche they're allowing the folks to use their foods to know they're subsidizing the food banks to so they are bank will food so they don't default on their. or mortgages these are normal middle class upper middle class an even indeed

upper class people but there is stret they have 10 x. the they might be earning a 1000000 so they're dollars a sisterhood bank to get shewed them food coupon so they don't default on their morgan they're calling it a voucher as these banks the bank you have a mortgage with the bank the bank is concerned that you are not able to meet that mortgage because you're income has not gone up and the prices continue to rise so they're creating vouchers that they give it to the merchant bank virtual to reacted virtual bria as token as it were and other childcare and i c.e.o. yes of brioche yes on the a theory and block shame it's knee are see 20 token then they're throwing it a see we found a use case for earth aerial finally say it's halleck ticket him be happy and have so here again we pad 10 years 20 years and australia to feed this property bubble there to keep that going because if you're

not working in the commodities business in australia then you're your property speculator and you have the asset now so here's the unusual situation food bank south australia chief executive greg pattinson told a.b.c. radio adelaide it was still exploring how the program would work quote that's what we're exploring with some of the banks for the moment it hasn't started yet because we are still working through the process we've never been approached by financial institutions in the past and the banks to their credit are doing the right thing in trying to find a way of keeping people in their houses now in the medieval times you have the church and they have a lot of property and here you have the church of central banks and they're treated as saints an apostle they definitely are infallible banks have been determined and deemed to be infallible they are not punished by anything there is no mortal that can ever punish them because they say this with knights and our whole fabric of

society and the system around us would collapse should we question today too big to fail yes like god god's too big to fail so in the sector but this is what they said at the time pre french revolution that they were infallible these corrupt. priests that were wandering around europe at that time you know they were shaking down people for indulgences and nevertheless here we have another let them eat brioche moment and i want to turn to another part of this this trying to sustain this acid not system that we have around the world and you had predicted here in christ report that cutting interest rates down to 0 and then to negative that it would cause deflation and here's a headline from bloomberg central banks negative interest rates were supposed to increase spending stop deflation and stimulate the economy. they may have done the exact opposite so this is based on a study from the university of bath in england and you had to wait 10 years after

kaiser report told you this would happen and here they're saying yes they don't credit us but we were right writes patrick men and danny blanchflower another economist and former central bankers argued that this type of money printing would create inflation however what it did was it kept the zombie banks alive and they pushed out companies that could create actual jobs and innovation and genuine taxable inflation economic activity and by catering to the zombies of the zombies got bigger and bigger and as such became a black hole of debt so the black hole of debt the cheap rates of negative rates are increasing that black hole of debt in that's deflation and now negative interest rates are soft default on sovereign debt that's also the place but again go back to my theory that this is an asset not they were never ever going to lend to businesses businesses don't exist in this world where financial ice world what

they ran out of was greater fools back in the 1980 s. when we began this bond market bubble when interest rates were at 20 percent and now they're down to 0 and even negative what we had always was a greater fool to roll over your debt who could back in the eighty's you had to you know take out a mortgage to 2 and a half times your income you had to put 20 percent down then they cut the that down to 3 percent down then to 0 percent down and even they would pay you to take a mortgage they would give you the deposit essential and they would loan you the deposit and add it to the mortgage so you came up with that then you could always roll it over and well because interest rates are lower now than they were in the eighty's you could act you don't need to just borrow 2 and a half times your income you could do 5 times and then 7 and then in central london this 12 time. your income so there's always been a fool willing to say ok i'll take out 12 times my income what can go wrong because

i know in a few years time maybe somebody will do it for 15 times but that fool never came along to your point so the lending is spent to property and property assets are collateral izing ever greater lending into ever grading misallocated resources into inflated property bubbles yes this is iceland you know iceland the banks lent to the property markets they used the collateral to create this enormous bubble and then a pop in the entire country went bust this is being done on a global scale what we saw in 2008 the world came to a crashing stop iceland went under ireland was faced with near extinction there was this huge multi 100 trillion dollar bailout and now we're at the end game about where the property values that were inflated to these incredible values where you've got the citadel hedge fund ken griffith buying a flat in new york for $280000000.00 right so you know if i did all short and here's the titanic is the world economy is the titanic in 2008 it hit the iceberg.

and started the saying and here's ken griffith with us $280000000.00 it goes up in value. ok what has perpendicularly that's a that's for now when we reach to a shortage of fools that's what's missing in the world we need to grow more fools and in fact in the united kingdom when you know there's a help to buy scheme and remember george osborne introduced that in the u.k. his mom loves the program and the fools that bought that are using it love the program but other people like report might suggest it was a ponzi scheme we have the us like not and what are they doing with the help to buy scheme 6 years after we called it a ponzi scheme but the fact is the government is having to say well now you can take out a 35 year mortgage because member that's how we had greater fools you had less deposit down you extended the mortgage 3 times and you lowered interest rates so now our app and game we know what happened in france maybe this could well if you

look around the world you see the unrest that it's the beginning of that sort of thing when the assoc now falls apart right instead of having one revolution in france or in the russian revolution of the american analysts in him a global insurrection against banker occupation. right and they're all one joining of forces the g.l.a. shah will join forces with the folks in hong kong when horses and arab nations and it's all the us and not essentially that what they are is going to c.e.o. us and you know currency titanic's last nightmare so we have a lot of the 2nd half remember. it's a danger to the news into the christmas day just for this terrible day is that simple

compared and simple to deal with climate change as compared to making the triple and terrifying so is it dangerous to do this and to think that if we thought the planet being full just for those people who got to do the sums here. during the great depression which i'm old enough to remember there was most of my family were unemployed working. there wasn't it was bed you know much worse objective listen today but there was an expectation of the things were going to get better. there was a real sense of hopefulness there isn't today today's america where shape by the turn principles of concentration of wealth and power. reduced democracy attack solo doubt engineer elections manufacture consent and other principle holds according to no i'm chomsky one set of rules for the rich opposite set of rules for

. that's what happens when you put her into the hands of a narrow sector of will switch will is dedicated to increasing power for itself just as you'd expect one of the most influential intellectuals of our time speaks about the modern civilization of america. well you know the part they were kind of adopted because we're all pirates there's a lot. i mean there in the small bold steps in a hard pull of ships and it's standing. on top and. the little self to big told fish already 90 percent of it don i need to call on the collar. to conduct 15 scoops

$75.00 tons tune up and they do it several times a day with a big fleets of power you get an idea of the ocean the fish. we have to understand we can not stay still and just. be witness the deal going to disaster. i'm doing this because i want the future world to future generations to have and enjoy the ocean we have. a clue. welcome back to the kaiser report i'm max keyser time now to turn to mark the lack who publishes the annual in gold we trust report we're going to get into this

massive tome quickly mark welcome great to have you on now you're from lichtenstein 1st of all i like the way you say like the time how do you say it listen in the sand call affair like i'm in a crazy movies are they well we are in paris you are from vienna so you're austrian . in more ways than one many of our guests here on kaiser reporting who watch the show call themselves a part of the austrian school of economics are you an austrian school of economics person or what does it mean to you well i would say so i mean it's quite important for our develop and test been very deport important the austrian school of economics i think helps to really see that this is in the term the 2 for way to view the monetary system so it's not only central banking it doesn't have to be central banking necessarily but like mainstream cannot mix just takes that as a given and i think that's perhaps one of the biggest atlanta just if one studies

the austrian school of economics just that one really realizes a this can be another way and the central banking may not be the holy grail for a day or big fan also of the big standard that book saved in the most i am yes and he goes into detail into his view of the austrian school of economics and he's a real he really hates keynesian and and their idea of printing money ad infinitum into that point there are over 17 trillion in negative yielding bonds in europe in what school of economics is this or do negative yields defy the laws of time and space and finance and now the words. this is definitely not austrian school definitely not i think it's basically a function of that based momentary system which we have which basically. brings us to a point where we have an ever expanding amount of that and then we need to central

bankers to kind of try to inflate the way out of this and we lend that at the point where we're pretty much at the end of the road in terms of. youth's into the in terms of interest rates and we really need to know that the central bankers have to really try to reflate the the system in a new kind of way and there's all kind of interesting debates going. currently which is quite interesting to follow i think we are at the verge of the new period to go with this reflation will really hit the new. late to start mother's little bit of face so inflating well out of debt money is constantly created to pay down the debt that you're creating and you create more money to pay down more dad and there's a vicious cycle and if you know it we know because they can't tell a fact if you're a friend of the banker and you're the 1st in line to get that fresh money you can make a lot of money in buying assets you know you can buy

a chalet in liechtenstein you can buy fine art but if you are not part of that group by the time the money gets down to you you're paying more for groceries you're paying more for gasoline so you experience that price inflation and it creates us an enormous gap between the haves and the have yachts and the have nots right and south but this negative rate seems like more of a defaults an outright default on a bond then an attempt to inflate one's way out of debt i see you nodding your head what do you think you know i think one can make the argument that it's kind of a. soft the fold i mean you get you know $0.09 on the dollar bakewell even less if you have a negative one percent so that's basically a partial default sure but i think the main intention is really to push this

currency on force and really i mean in switzerland and least on where we have the swiss run we have pretty negative interest rates already and this is a huge huge problem obviously for us that managers for for all these pools of funds they really need to do something with. or obviously they missed that in equities bones less and less an alternative corporate bonds listen listen alternative and once this kind of hits the u.s. dollar i think really that this really an interesting environment for for gold and bitcoin you know it's almost like statutory financial all crime being foisted upon let's say pension fund managers who are obligated by law to buy government debt if that government debt is a negative yielding debt it's a negative interest rate that they have no choice they have to buy that debt even though it means that they're bankrupting all these pensions and so where do they

get away with this because the social contract you know where in europe right now we are in paris where in home of really the whole idea of the social contract and the idea of the enlightenment and if the social contract is broken according to john locke the people must revolt you know we're saying that we see this is all we see in hong kong we've seen occupy wall street we've seen this all over the world what we call the global insurrection against banker occupation would you would you put it in those terms i get asked this question because we are europe it's a bit of a highfalutin question but however is it a. break in the actual social contract that is girding society together i think so i mean the quite a few indications that this kind of social contract in germany it's called to get other to once fair to the uk which is also quite a interesting work is somewhat breaking down and people are also losing tons of the

trust in this social contract i think one of these indications also would be like dropping birth rates so people really have to take care of themselves if they're one to live that kind of life with which they were used to growing up and they really don't know how to manage that was like 2 or 3 kids even that's why you've got birth rates was scratching at one actually in germany and even in countries like like france and spain which traditionally had. higher birth rates that these birth rates have been running during the last 10 years especially so so that's one of these indications in other indication i think is the whole crypto phenomena which is obviously embraced by the younger generation more and they think perhaps ok who knows if really this whole field system collapses down the road when

i when i'm at my pension age i may be able to save myself from economic point of view if i have a few bitcoins right so that's also i think a part of this mistrust in the social contract right well let's turn to this mass of report last seen a lot of reports on monday but i've never seen a report like this it's huge and been through it and every single page has some good stuff in it. meant to miss the company anyway if you get as bad as a p.d.f. yes it or they can contact i guess the name of the report is gold in the age of a roading trust the very thing we're talking about dollars now on the upswing all of the institutions the family as you just mentioned banks things that are. the social contract these are all dissolved in real time and this is now reflected in the price of gold you published just in may in just 2 weeks ago mark carney confirmed this trust has gone globalisation is over what next for what people are

familiar with and that is fear out money fiat's currency like the dollar the euro i think one has to differentiate very much when one lives so ready which kind of culture one has in terms of currencies we say we in central europe for instance in switzerland again and austria germany we were brought up with a relatively stable money and relatively stable purchasing power which is declining now not perhaps in terms of consumer price inflation but in terms of purchasing power of real estate so people now starting to question a little bit. the system also from from the field money side if you are on the other side living in south america or living in the middle east i think you've got a completely different. view of money you already were much more skeptics and so

the eroding trust which we this report also mainly refers to i say western societies which still had generally the feeling that this is a stable system but this is i think now also on this way down let's talk about the e.c.b. the airplane central bank it's really mostly the old. bank right and it became the european central bank it's german germans the biggest economy in europe and it's basically just the germany is running the show and yet member a few years ago when people were aghast at the balance sheet expansion of the fed and they were saying well this all never had to pay it. hermanson germans were never allowed this type of monetary maddest and yet they certainly want to have did that and now the results are pretty obvious i mean i would think the german people . are starting to get

a bit nervous if not quite upset about the germans definitely nations of say verse i mean also that is the coming a little bit busy but still it is is more in the genes than in other countries and savers in terms of saving in the bank account and not investing so so they really get a problem if they have negative interest rates so they were kind of ok with interest rates which they've been living with for quite a few years actually so that's in real terms negative interest rates anyway but if you once you have nominally negative interest rates then then people really think. i'm not happy. so that would really be i think the point when when when a broader potentially a broader wave of unhappiness regarding the c.p. will rise the key word in all this course is trusts trust is the key word and you

know in crypto and big coin trust is a big word because it's trust less trust isn't needed the transactions are solved verifying you don't need a 3rd party to apply that stamp of approval and in this in this report gold in the age of eroding trust you put big question right up there with gold it's especially gold and because in our together in your view of how to play this collapsing a world of collapsing trust. yes i think it's important to to not neglect generally the technological progress which is going on on the cryptocurrency side generally which is obviously also being followed. and try to being taken advantage of from central banks so so so it's just important if you really want to see the whole picture too to follow what's going on but when it comes to bitcoin. i mean this discussion is always interesting one of the.

bitcoin versus gold gold is. obviously a physically metal it's an internal metal it's just never dying and bitcoin is a man made system so so that would be one fundamental difference but then again from from a from a term of money bitcoin one can make the argument is even harder money than gold in the medium term so so it would be really an interesting measure of value so i think one needs to follow it kills right we're an interesting camp of being both gold and pickle and we're going to talk about that some more in another segment if you can hang on but thanks for being on this episode of kaiser report thank you well that's going to do it for this episode of the kaiser 4 with me max cousin stacy herbert like to thank our guest mark of alec incremental this is the thing you've got to get the p.d.f. it's very few let's get in touch with us as kaiser report on twitter or matt kaiser

report dot com and i stand by oh. ready ready ready ready i am sure of this movie to stop it from continuing to grow. i just never felt very good about the idea of bringing shoulder room with him to the world because i didn't feel like things were. they're in very good shape that the wife was just going to be a lot of software programs. but. there's no reason the more. you take things that already made me look there's no reason to make something else that need

to get loads of everybody's scared to talk about it certifiable is truly dependent on us addressing this issue and if we can't even talk about it and reach anyone have a conversation about it then. we're in trouble all. ready of the day there are good terrorists and bad deadens the bad terrorists and those in yemen who the united states deems to be a threat the looked at those who work in syria the cia and the us military were engaged in covert actions really throughout the world. where they were assassinating populist leaders they were backing up right wing military juntas funding an army just was there's not anymore because there's always a small income for a really good. profit. seemed

wrong why don't we all just don't call. any new world to be yet to shape out disdain to become educated and engagement equals betrayal. when so many find themselves worlds apart when she's to look for common ground. what politicians to do something to. put themselves on the on. a get accepted or rejected. so when you want to be president or injury. or something i want to be honest. that's why the press has allowed the for last 3 of them or it can't be good that i'm interested always in the waters of our. question.

she stressed to. this or that the british at the book should out that if you have the will to. stop the solicitor you'll see taste that these traditions have a cia which quite a long. time look what you've seen the member states teacher come over to me for sure i. want to talk to you sort of you know my it's your bonus for c.b.s. you. get to mr ellsworth support of our little spirit to pull through this interview but you believe it is to teach the student actually the person the person has to be vocal or should stop them spilling. spiced she.

used. the united states could potentially be smuggling weapons to militants in syria according to leaked documents obtained by a bulgarian journalist. about them a person meets asian leaders on the 2nd day of the eastern economic forum in fact in full stop with the iran nuclear deal high on the agenda. altie speaks exclusively with the malaysian foreign minister on the sidelines of the forum expresses his country's concerns over the probe into the downing of flight m.h. 75 years on. sunday people will very quickly be making it can see should davis to get should want to believe on already it will solve them.