and very well may continue what. is or this is the kaiser report and we're going to get into some really important things here in paris france where we are now so let's bring stacy i'm going to quickly read the 3 have i and i have here because it's all about politics geo politics and geo economics here the 1st one because we're in france i'll start with the french headline because this was from macro and after trump leaves france mccrone warns world is living the end of western hedging moni but we also have a headline from the u.s. that matches this to my mind and it's from bill dudley former head of the new york

fed started in 2009 after tim geithner left until 2016 and before that he was with goldman sachs for about 2025 years the fed shouldn't enable donald trump you know trump isn't a trade war and that's why bill dudley responded to this is like this trade war with china is crazy we shouldn't cut rates in fact we should raise rates if anything he's almost suggesting anything to get rid of trump like we should overthrow the guy well trump's new trade war tool might just be antique china debt collectors of pre communist debt are lobbying the white house to force beijing to pay up president donald trump's next move in an increasingly fraught trade war with china could be one for the history books literally the trumpet ministration has been studying the unlikely prospect of reviving centuries old claims and chinese bonds sold before the founding of the communist people's republic this was a 1911 and it was used to fund the construction of

a rail line between hunk who won and once the communist revolution happened and the people overthrew the though. imperial power in china they said forget the debts but now the u.s. might revive that's because people have bought them buying them like e bay is a collector's item to address micron's comments and bill buckley's comments right this plays into the dual theme we've been talking about for a few months globalization the dollar is a sure. loss of western germany that steamy globalization this came in with trump and 2016 and he the idea of monitor is ation the global central banks cooperating to put out a currency unit of account that was better than gold is a 6070 year experiment that is now collapsing which is leading to d. dollars ation as b. countries like russia move aggressively away from the dollar and buy gold and big

globalization simultaneously as far as these chinese debts that were issued 19 a leaven or $9911.00 and are now being sought after for for repayment i would imagine what would happen is that simply us will default on some bonds to china. approximately a trillion dollars worth and claim that well we're just making good on the debt so you owe us to be used to justify a default again de dollars ation well yes there are some weird people involved in this some crazy texan sort of pastors and stuff like that and they are encouraging that they're claiming that with inflation and exchange rates in history that is actually worth a trillion dollars with by the way happens to be how much debt that china owes that owns of the u.s. so they own a trillion dollars with the treasuries and like let's just cancel it out but you mention the localization and for thousands of years we've gone through globalization and then d. globalization globalization d.

globalization we've we've gone through these constant cycles humans constantly do the siss we do this in markets that's why technical analysis and sort. that sort of thing also when you look at the history of globalization our empires rising and falling as happens we go through in lightman and e.m.i. in meant so i think this is what you're seeing with what mccrone is responding to when he says it's the end of western hedge of money what he's saying is that like the sun kings before him before the us empire that we might not call them emperors or caesar's or our kings but they do act like it with caprice it become very capricious and random and ok we've worked on this you know huge nuclear deal with iran now it's gone forget it you can't deal with them like randomly assigning like enemy status to countries and saying no you have to end all your trade deals with them and destroy your own economy because you're going to use

a dollar and we're going to shut it down so this is part of the what he's responding to de globalization is also the d.m. lightman cycles are natural they happen historical cycles through a 100 year cycles 1000 year cycles the concept of having a central bank like the federal reserve bank is an attempt to neutralize these cycles and say look we recognize there's a thing called the business cycle and the when things get hot we're going to raise interest rates and when things get slow there's a recession when to lower interest rates to mitigate the amplitude of the cycles to have a steadily growing economy with price stability that's the mandate of the central bank but what's happened over greenspan when the markets crashed then he was they went and they created the plunge protection team with a working group on finance to keep a perpetual rolling bull market and to get rid of the business cycle to favor a perpetual nirvana for wall street and this is. a supposed greenspan bernanke

yellen here we have jay powell is now taking it upon themselves not only to get rid of the business cycle but the. actually challenge the president by saying we're going to adjust our interest rate policies in to try to take you out of office so not only if they abandon their mandate of price stability and counter business cycle ball cities but they have been just decided that they are a 5th branch of government right so that's not in the constitution that's a way way off the constitution that is to type tyrannical 1st of all when they since 1970 have the divine right of banks they've established this and it's now solidified that they are divine they have the right to exist beyond all others they don't have to abide by the laws of that common man has to abide by about going bankrupt and things like that the doesn't happen to the sun kings of wall street so it to be clear i know that there are 3 branches of government but i all i often clue the press is the stated force the 4th as i referred them to be the 5th ok

construct and commenters you go go go ok since we're talking about the fed i'll say this us president donald trump's trade war with china keeps undermining the confidence of businesses and consumers worsening the economic outlook this manufactured disaster in the making presents the federal reserve with a dilemma should it mitigate the damage by providing offsetting stimulus or refuse to play along if the ultimate goal is a healthy economy the fed should seriously consider the latter approach and he actually goes on to say it like there's even an argument that the election itself falls within the fed's purview. but you know before you comment on that i want to say that because i'd like to compare it for what is going on in france and where we are where home here in paris and france and you know when the divine right of kings and it here and it was a very brutal ending to the divine right of kings will say when this sort of situation when france was on the verge of bankruptcy thanks very much france because they went bankrupt because we there was

a gold standard then and they used their gold to finance the american revolution but that was good for us but they went bankrupt and what john lost suggests they do . you open the books he show the books of the divine casing to the people they publish and all the people of france read it and suddenly the king is like an ordinary person out you know he bought some toilet tissue he went. to safeway or tesco it you know there was an ordinary thing but also like the extravagance of his life and the courts life was suddenly so shocking to the people so here's that fed basically opening up their books it's like oh we're independents and we're like the clergy we're just you know funneling the messages from the economic gods but now they're saying no we're going to read the system we're going to overthrow the government we're going to like install our own puppet banker right the fed would like us believe that there is policy and economics behind what they do yes and they have dots and they get all of the dots yes and they get together these concepts

like jackson hole and they discuss economics when in fact they're politically motivated hatchet guys who are there to protect the bankers and make sure that their friends do not obey the rule of law and not sure it's about the king being shown his true accounting so much as opening the kimono oh yes they are revealing that this kooky theater of central banking is a very unpleasant looking gangly before so you know how each nation has a unique cultural sensitivity to things that have traumatized them in the past so germany germans are very sensitive to inflation because they know where it took them as a people russia is very insensitive to invasions they've been invaded by napoleon by by the nazis they don't like it and in france they're very sensitive to the people rising up and bringing out the getting and so finally ending on mccrone he

says the world order is being shaken like never before it's being shaken because of errors made by the west and certain crises but also by the choice. is made by the united states in the past few years and not just by the current administration and he then went on to say pushing russia way from europe is a profound strategic mistake essentially suggesting we're doing this because of us politics and not about pushing them into the arms of china which is going to be a disaster for europe but we don't live in paris many years you know there's more statues sirup thomas jefferson maximillian robespierre don't find anything max millionaires they are now the one in the 19th or something and yet he's the architect of the revolution the reign of terror some could say he went a little bit too far he did what had to be done. he equated. read it read his work and the will is you lay tional pick up the mantle of war that's the rub spear that's my question that's what matt ront that's what macro on is worried about and

that's what he's seeing and yes you show it he's having to plan his own survival so this was going off saying i mean you know get a get out the you know either leave the country or face the consequences i mean that everyone here is on the cusp of this type of revolution god bless them i support them i'll be won't be here of course he'll be rope spear modern day blog but i support oh you got to go take a break and when we come back it'll be like a drop of a good scene on this and then we come back in a roll answer the 2nd go. tries to make sure that the british.

stopped russia was so you see. it is easy to see why i pushed a long. time and now look what you've seen in our best teacher come over to me for sure i. want to talk to you so if you're my it's your bonus for to be who you. are mr ellsworth supporters are still with spirit over there is this interview are you going to use to teach the student actually a person to revoke or should. just let them speak. and their pain years and cross talk started 10 years i think it's time to shake things up maybe change the branding maybe the format here is what i've been thinking about

next season related episodes filmed on an island 10 experts fight it out for a trophy what do you think ok a more affordable option $25.00 to experts. and one red rose another suggestion geopolitical jeopardy parity no political cookout where we will literally. be elites. late night show it's a rare format piece face and it's chief all you need is an old microphone in a printed banner but to leave me with one of my guess i can do this campbell after politics gone wild like music. ok crosstalk is not about hype it's about meaning 10 years of talk and still going strong. peter if you want to change something why don't we get rid of the bow tie you know that is too much.

welcome back to the kaiser report imax kaiser time better return to our conversation with mark baloch who publishes the annual gold we trust report look at this point it is not last time it's. that look very least you can hold the door open and it should read it as chock full of goodies it's available for free as a p.d.f. just contact these folks of increment welcome back hi i see you again let's get into part 2 here i want to touch briefly on the interest seen in rivalry between the gold bugs and the crips the bugs versus the crips and you know you have folks that are hardcore gold bugs and they don't like the crowd some and because the throwing rocks or whatever at the gold bugs you are straddling both worlds what are

they getting wrong well. i try not to be dogmatic in the sense in this debate at least so. i think bitcoin is an obviously a great invention it has done a lot for men con already in my view at least if not. at least if not it will become perhaps in like one part of the extreme scenario a new global reserve currencies but if that shouldn't materialize and it goes to 0 because there is something better comes up but we go back to gold so whatever it did least has brought up a huge conversation to the young people what for your money is what money is and i think ideas actually form future so it's important that people really think about their ideas so so that i created a lot well let me play devil's advocate for a 2nd or in this case i only play peter schiff the advocate. peter chef who's

a prominent anti bitcoin and gold bug person will say well of is just another fee at money he has a see it as hard money as commodity money at all so and you are business think big quite an institutional accounts i mean they're buying a lots and lots of it in the institutional money is pouring into because this is not no it's not a hobby for. cypherpunks anymore this is becoming a factor in global finance it's changing the global financial architecture so what do you what do you say well i think in both cases like an alternative store of value is kind of the final insurance policy for the central banking system which are going crazy so if if if you have negative rates and never negative for you then bonds more and more 17 trillion and increasing by the day then you need some place to hide and then people really i

think think about what is money what could service money. in terms of stock the flow rate should both it's really very hard money. people realize ok this this could serve a spot of store over the and i won't be from a put fully a management if you want to be dogmatic i would be pragmatic and i think one can play this very well in the combined book folio one other than have to bet the house an idea of these. actually quiet. easy thing to play and i think these debates look goes back to austrian school of economics doesn't mean it's calm anger as an idea of money what is money if it it's all subjective anyway and if the market says because it has money and it has the attributes of gold and that's it's a limited supply people use it as money and it's fungible as tangible it's divisible it has every quality you want of gold then it is money it's just

a fall if you claim i don't understand how austrian school economic honest can not see this as money yeah i agree so many to say exactly what you just know told to you so i think the sometimes mieses regression theory mistaken as like a counter argument because mrs kind of stated that you need. a commodity 1st something that which is often called to my view falsely called intrinsic value you need some some good which has a value 1st to that then it can perhaps become money but i think the main garion argument actually trumps that i think so too darn it i like to go on record that mrs argument i think a short sighted and clearly he didn't see 2 things there was no such thing as negative interest rates during these years this time and there was nothing called pick on and based crypto currencies so he is he's been trumped by big quine now

let's move on so russia russia central bank has been buying gold quite aggressively month after month year after year what do you think's going on there well it's very interesting i mean that's developed that this development has been going on for 10 years now they feeling this very on the consequences basis and they're actually going to overtake italy and france is number. 3 and 4 of international gold holders in within the next month and there's very little debt and they have very little of this doubt that to g.d.p. right so so that's quite an interesting busy development i think that will be big news when russia becomes the 3rd largest gold hole this probably at the end of the year beginning of next year sometime then you have really u.s. germany and russia china is not that transparent obviously with their holdings there could be a little bit ahead already know this is a big story with the globalization and the dollar as asian so people are russia are

saying look we don't want to be in the dollar because it's. we're tired of the censoring you know we want to do business and there's a school that was thought that tells you that putin's main objective sense of taking the presidency in russia is to do deals he's a pro-business he wants to do deals around the world that's his primary objective because he realized that's how to grow g.d.p. in that. everything he does reflects that and if he's censored by the spurious sanctions based on extraordinary thin political grewal he's like ok forget it we'll just dump the dollar will be used gold will be like gold will seek other ways to do business we just want to do business you would think america being pro-business there would be a natural alliance but america seems to be kind of reverting into a shell of no business but you know i know when people on the 1st. episode that we did you know of course there are going to be comments in there that

says this guy sounds like arnold schwarzenegger now you must get that a lot and why is that correct yeah. some comas somebody even said i'm out so they go for strong economic so i'm ok with. it did with achieved quite a few things so you have to get a that's not a bad thing. all right so not only did mark carney call for a post dollar world right so mark carney central bank said he said get out of the dollar ok this is after russia's been accumulating gold and position themselves for a post dollar world at the good dollar rise world now mark carney at the bank of england saying we need to get out of the dollar as a world reserve currency and he's looking at crypto what do you make of this idea that in america the federal reserve chairman your own power all know you know it is bill dudley the former new york fred he wrote an op ed he says you know we got to stop trying from winning we can't lower rates so this is beyond activist fed this

is gone cuckoo my personal view is that the independence of the central banks really hasn't existed. at least a few decades for instance going back to george herbert walker bush him blaming greenspan for not being reelected because he didn't he didn't lower rates in one. and so on so so nixon and even going back to nixon this is this was always like a little bit of a game which now is. very obviously going on in one can just follow don't tweet easily so the president always wants lower rates generally speaking and sometimes the fed resists and sometimes it doesn't so in my view i think this whole discussion is overblown because i think. at the end of the day the market is pushing the fed so if the you could. test. the this is

a much higher pressure than than any president pushing for lower use because really the main target of the fed or 4th of all the central banks is to keep the party going on and you really can't keep it going on if you have an inverted. curve it's really flashlights going on so so so i think this is this is politics and a lot of power structure going back and forth but the end of the day the market has to see what right well on that point i must interject my thought here so to some degree the central banks are a bit of a pull at bureau you know they're setting the price of the money and they have their thought was if we lower the price the money will create some inflation and that will create some tax revenue it will all pay off our debts and instead they created deflation and they are sinking the global economy as now pundits are recognizing that negative interest rates and low interest rates are causing

deflation not fighting deflation so it's not necessarily a market signal that they're getting it's more of a panic signal or let's say the minsky you know i'm in minsky and hysteria that markets start to feed on each other and you use the plated ass about you to borrow money to inflate the ass of again until you have that minsky moment of a crash where was 1900. in the bond market 93 dot com in 2001 subprime mortgages 1008 and i think we're at a minsky moment right now do you agree with that and if so where will it pop up or will we see it we and others have been talking about the everything bubble and everything bubble is perhaps the hostage of a series of bubbles which. a few of them you mention just know that everything bubble is probably in its sent to the bones the bone bubble and if you have 17 trillion bones with with negative feuds what if not that is

a clear indication of a bubble right so i mean us austria-hungary empire going back a few 100 years that the interest rates have not been this low and the bonds are at a higher price than they've ever been in 300 years so lichtenstein's been around for what 300 years you've never had a bond bubble this big in your entire history as a country where you think about that well the good thing about it doesn't have that so. there's a lot of people live there 38000 was the average. per capita that were. high higher than cut cut cut or i guess wow we're moving similar similar anybody to enter the u.s. you know i just go there go when there is a brick and think and regine anyway look this book here has a lot of charts it has so many charts that mitch firestone called me in the middle of the night and said rush me a copy immediately because i'm dreaming about all the charts in this book to get

back to kind of a global talk about rates and economics and things just cover briefly imagine stock to flow ratio and this kind of crossed crosses between big gold what is it how is important and in the house important because in a particular well that's a good point and that's perhaps one of the very central points of off why we view gold. frankly than for instance mainstream banks mainstream banks if they arrived in though this is about gold they usually have it in their commodity commodity analysis department and this is just like supply and demand and allies supply and demand but the big difference is obviously that gold supply is huge. and grown supply is huge that's basically the stock you're referring to. where it's like oil or any other commodity you really just produce to.

consume right so you whole lot you hoards gold and the really good thing about gold is when you when you hoard it you keep it keeps its. prize i got above ground stock . in because i am because the happening coming up in 2020 that the mining output is which is the flow versus the hoarding stock people have the 1st that goes through a significant event correct brought it hops every 4 years and basically it's the inverse of inflation i think that's a an easier way to to realize it it's like 1.5 percent about in with gold and austrian economists dream. is a dream currency not to mention high steady inflation everybody loves it even at lunchtime they love to coin now that's why we're moving there and getting a chalet and shots of these kind of pay for and because you can like this guy well we have to say goodbye but thanks for being on a counterpart place where we are and that's going to finish this one of the cars

reports me max kaiser stacy herman marc valid but our guest incremental get this but you get it for free and you catch us on twitter account as a report or kaiser report dot com and we'll have a link to this book where you think about that it's all next time. i. ready ready ready ready need to stop it for continuing to grow. i just never know very good about the idea of bringing children into the world because i didn't feel like things were in very good shape that a life was just going to be

a lot of software program. there's no reason the more kids you take things that are to me the. most is a myth something else that. everybody's scared to talk to that is certifiable is really dependent on us addressing this issue and if we can even talk about it every chance even have a conversation or that it then. we're in trouble ready .

they're not going to get. was. a major prisoner swap between russia and ukraine is hailed as an important step by the introduction. community school in kiev also heralded as a significant. russian journalist whose release was widely called for by liberty groups is among the 35 to arrive in moscow the same number of people were returned. in other world news this the u.s. state department confirms it trying to. help in all the uranium oil tanker at the center of a diplomatic route so they could see. shocking scenes in south africa ongoing riots there us for a.