overthrow the guy well trump's new trade work tool might just be antique china debt collectors of pre communist debt are lobbying the white house to force basing to pay out president donald trump's next move in an increasingly fraught trade war were china could be one for the history books literally the trump administration 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 is a 1911 and it was used to off fund the construction of our rail line between hunk who and szechuan and once the communist revolution happened and the people overthrew the 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 on like e bay it's a collector's item to address micron's comments and bill buckley's comments right that's plays into the dual theme we've been talking about for

a few months globalization the dollar is a shoe right so the loss of western germany that steamy globalization this came in with trump in 2016 that 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 dig globalization simultaneously as far as these chinese debts that were issue 19 a leaven or $99911.00 and are now being sought after for for repayment i would imagine what would happen is that simply u.s. will default on some bonds to china. approximately a trillion dollars worth and claim that well we're just making good on the debt say you owe us to use to justify a default again dollars ation. well yes there are some weird people involved

some crazy texan sort of pastors and stuff like that and they are encouraging that they are claiming that with inflation and exchange rates and the 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 globalization and for thousands of years we've gone through globalization and then d. globalization globalization globalization we've we've gone through these constant cycles humans constantly do this this is we do this in markets that's why technical analysis and sort of that sort of thing also when you look at the history of globalization our empires rising and falling as happens we go through enlightenment and dmae in mint so i think this is what you're seeing with what mccrone is responding to when he says is 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 caesars or kings but they do act like it with caprice it become very capricious and random and ok we've worked on the 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 neutralize these cycles and say look we recognize there's a thing called the business cycle and the when things get hot. 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 happened to greenspan when the markets crash then he was they went in 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 her in the business cycle but to 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 have they abandoned their mandate of price stability and counter business cycle ball cities but they have 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 that 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 gone bankrupt and things like that the doesn't happen to the sun kings of wall street's it to be clear i know that there are 3 branches of government but i all i often clue the press is the more stated for the for that rather for them to be the 5th of patients and commenters you can go go go may since we talk about the fat out 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 for what is going on of france and where we are were 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 did john law suggest they do open the books he showed the books of the divine king 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 and 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 the 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 in this group. the 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 macro 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 choices 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 u.s. politics and not about pushing them into the arms of china which is going to be

a disaster for europe well you don't live in paris many years you know there's more statues sirup thomas jefferson than maximillian robespierre that don't find anything max millionaires now he won 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. will pick up the mantle oh well that's the rub spear that's my question that's what matt ront that's what maccarone is worried about and that's what he's saying and yes you should say 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 you'll be rowse fear modern day blog but i support their. well we 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 the role and through the 2nd to go.

oh. and very well now can see you watching us in such.

she stressed to make sure that the british and the bill of books set up. shop pressure was so here she. could use these. to which she does have time and look what you've seen the member states future. for sure and. want to go to the source of your money if your bonus for tribute. to mr ellsworth supporters are still welcome to the spirit of this interview but you believe that it's a studio actually the most powerful group of people pushing. them speed. the world is driven by shaped.

thinks. we dare to ask. welcome back to the kaiser report imax kaiser time now to return to our conversation with mark malloch who publishes the annual gold we trust report look at this plan it is not. and 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 nice to see you again let's get into part 2 here i want to touch briefly on the interest seen in the 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 bitcoin crowd some and because throwing rocks or whatever at the gold bugs that you are straddling both worlds what are they getting wrong well. i try not to be dogmatic in the sense in this debate the 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 into the young people what for us 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 shifts the advocate cell peter chef who's a prominent anti bitcoin and gold bug person will say well of because is a just another fee at money he doesn't 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 big going 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 but they 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 as a spot of store for the and i won't be from a put fully a management view want to be dogmatic i would be pragmatic and i think one can play this very well in a combined book folio one other than have to bet the house an idea of these so it's

actually quite. 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 is tangible all 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 austrians call economic on a mistake and not see this as money yeah i agree so many to say exactly what you just know told to you so i think 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 in my view falsely called intrinsic value you

need some some good which has a value 1st 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 mazes this time and there was nothing called decline in base cryptocurrency 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 this development has been going on for 10 years now they feeling this very on the consequent basis and they're actually going to overtake italy and france is number. 3 and 4 of international gold hold us in within the next the month and there's very little

debt and they have very little of this doubt that titchy d.p. right so so that's quite an interesting busy development i think that will be big news when russia becomes the largest gold hole this probably at the end of the year beginning of next year some time then you have really us germany and russia china is not that transparent obviously with their holdings there could be a little bit ahead already knows the big story with the globalization and the dollar is asian people are russia are saying look we don't want to be the dollar because it's. we're tired of the censoring you know we want to do business and there's a school of 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 coma's 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 yeah you have to doesn't 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 powell no you know it was 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 my personal view is that the independence of the central banks really hasn't existed. for a 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 and so so nixon even going back to nixon this is this was always like a little bit of

a game which now is. busy 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 right well on that point i must interject my thought here so

to some degree the the central banks are a bit of a polar 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'll 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 minsk in hysteria that markets start to feed on each other and you use the plated asset value to borrow money to inflate the asset again until you have that minsky moment of a crash where was 1900. in the bond market 93 dot com in 2001 sub prime mortgage 2008 and i think we're at a minsky moment right now do you agree with that and if so where will it pop up

where will we see it we and others have been talking about the everything bubble and everything bubble is perhaps the ha stage of a series of bubbles which. a few of them you mentioned 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. for capita that were.

high higher than cut cut cut or i guess oh 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 call me in the middle of the night and send 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 in this kind of a cross crosses between big gold what is it how is important and in the house important because in a particular way of 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 always the. gold supply is huge the. grown supply is huge that's basically the stock you're referring to. where is like oil or any other commodity you really just produce to. consume right so you hoard your 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 that people have. that goes through a significant event correct right it hops every 4 years and basically it's the inverse of inflation i think that's

a purpose and easier way to start to realize it it's like 1.5 percent in with gold just an austrian economists dream. is a dream currency not to mention high steady inflation everybody loves it even lunch in china i love big point 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 the concert for place where we are that's going to focus 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 need to stop at the 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. you take things that are to me the. there's no reason to make something. to everybody's scared to talk about it certifiable is really dependent on us addressing this issue and if we can even talk about it if we can even have a conversation of that it then.

ready compared to centuries of chinese history 2 years is nothing unless budgets 2 years of done. with yet another round of terrorists being added to the us trade war this last week china strategy of waiting out the enemy likely to work with the current american president. i'm. going to give you.

a major prisoner swap between russia and ukraine is hailed as an important step by the international community moscow and kiev also heralded as a significant move forward. russian journalist carol admissions whose release with y. be called will bind of the troops is among the 35 to arrive in moscow the same number were returned to clear. the news this saturday the u.s. state department confirms it tried to bribe the captain of the iranian old tank and the center of a diplomatic route so they could seize the vessel. and ongoing is an.