that is the end of it for the teeth of fun now the mountains of moist only grow while. the united states could potentially be smuggling weapons to militants in syria according to documents obtained by journalists. from reporter meets asian leaders on the 2nd day of the eastern economic forum and spoke with the iran nuclear deal high on the agenda and. our team. speaks exclusively with the malaysian foreign minister on the sidelines of the forum he expresses his country's concerns over the probe into the downing of flight m.h. 175 years on. some people. making excuses ship the investigation listing the week on the deal with saddam

for some quite the same to accuse a particular country the latest on these stories you can head to our t.v. dot com kevin owen he is coming in about 59 minutes from right now but in the meantime stay with us for the financial news in the. or this is the kaiser report where in paris you know so many people referenced the mary antonov quote let them eat cake and then you know historians have gone back and they said you know it's actually my cake it's brioche brioche you know that so i brought in actual poem my god what a mess we brought in actual brioche this is a brioche for the sliced there at the patisserie and so this is what she suggested that the peasants this should be eating because they had run out of pan you say

this is a brioche is a slice of the nicer version of pan there's a few in the cupboard let's throw that to the peasants and maybe they'll shut them up but. i believe there had been a wheat disaster because of the. volcano and i in iceland had blown and caused bad weather yeah that we learned about that in iceland and that's what they claim they like to claim responsibility for the way we are in the 29th same in this year lazio is barricading at the gates once again and folks are rising up for good reason what have you got in your little notes there because we haven't actually evolved since then because remember during the french revolution you made a film about this with gold money dot com and about john law and acid not because acid not was basically a fiat's currency here in france that was backed by all the property that they had seized from the catholic church as a derivative it was

a derivative and nowadays i realized it dawned on me with all these negative interest rates all of these crazy economic policies emanating from our governments but at particular from the central banks is because we actually do have globally and afaik not because. most people think that banks lend to businesses and that's what they're doing and everybody's looking at the e.c.b. to cut rates have that they can lend to businesses and grow the economy but actually over 85 percent of all bank lending is for properties and property bubbles so we're stuck with that right i mean that's a transfer payment and they use derivatives these modern channels of banking and conduits to collateralize the property in the modern cars the french government the time simply seized it via the catholic church their property securitized it and sold their currency back as such but here in the 21000 era they did they do it

using reverse collateralized morgan's obligations and fancy wall street products but as you point out so so well there this is a replay of all the elements that led to the french revolution using financial engineering and securitization and the riveted 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 one $1071.00 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 for. 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 another replay so it's got a couple of almost verbatim replays of the revolutionary times of france and not only are they collateralize ing property as you point out it's no fat there's nothing reinvented here it's all property backed and now instead of letting them

eat 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 mortgages these are normal middle class upper middle class and even indeed upper class people but they're stretched they have 10 x. that they might be earning a 1000000 or so their dollars a sisterhood bank to get shooed them food coupons so they don't default on their mortgage they're calling it vouchers 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 your income has not gone up and the prices continue to rise so they're creating vouchers that they give to the. virtual reaction virtual brioche token as it were and as a child care and i see oh yes of brioche yes on the theory and block chain it's near c 20 token and they're throwing it i see we found a use case for a ferry and finally say it's halleck it can be happy so here again

we had. 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 in 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 then 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 ass ignaz 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 right patrick then 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 a 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 1980s 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 have 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

is 12 times. 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 full 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 and 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 they're 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 can grip it 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 kaiser report might suggest it was a ponzi scheme we have the us it now 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 may be 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 revolution in a global insurrection against banker occupation. right and they're all one joining up 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 see you know us a new currency titanic's last nightmare so we have a lot of the 2nd half remember. after

almost 2 decades of war knocking patient american military involvement in afghanistan appears to be winding down a deal with the taliban will see majority of american troops leave while still allowing a sizable contingent to remain just what exactly is washington's geo political interests to be in afghanistan america's longest ever. welcome back to the kaiser report i'm max kaiser time out of 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 grace to have you on now you're from

lichtenstein 1st of all i like the way you say lichtenstein how do you say it the listener. call affair like i'm in a crazy movie something 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 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 development detest being very deport important the austrian school of economics i think helps to really see that this is in the turn a twofer way to view the monetary system so it's not only central banking it doesn't have to be central banking this is there a leap of like mainstream economics 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 safety 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 keynesians 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 other 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 key. to very little starkweather's a little bit of face so inflating out of debt so 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 this 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 and 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 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 franc 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 this that's or obviously they missed it in equities bones less and less in the turn a tiff 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 the 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 seeing 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 quite a few indications that this kind of social contract in german it's called to get other to once felt the lack which is also quite interesting work is somewhat breaking down and people are also losing kind 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 the 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 less where 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 than these birth rates have been shining 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 in 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 went through it and every single page has some good stuff in it incremental is the company any way to get this but as a p.d.f. yes it or they can contact i guess the name of the report is gold in the aid 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 to things that are. the social contract these are all dissolved in real time and this is now reflected in the price of gold you publish 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 of the euro i think

one has to differentiate very much with one lives so 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 no 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

a 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 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 will never hit the e.c. bay. hermanson germans would never allow 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 say versus i

mean also that is declining a little bit busy but still it does 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 want to have nominally negative interest rates then then people really think. i'm not happy so 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 coing trust is a big word because it's trust. 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 it quite 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 correct yes i think it's important to to not neglect generally the technological progress which is going on on the crypto currency 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 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 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 that even the ha the money of the gold in the medium term so so it would be really an interesting measure of value so i think $1.00 needs to follow it closely 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 the kaiser report thank you well that's going to do it for this episode of the kaiser for with me max kaiser and stacey 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 for a few let's get in touch with us as kaiser report on twitter or mac. as report dot com and i stand by all.

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there the litter bugs are throwing this away industry should be blamed for all this waste the company has long promised to reuse the plastic. that's. a special project funded. on the disease. but for now the mountains of waste only grow higher. a loading welcome across top where all things are considered i'm peter lavelle after almost.