the prisoner swap between russia and ukraine is hailed by the 2 countries' leaders as a vital step in restoring relations russian journalist a kid. who's it released was widely called for by liberty groups is among the 35 to arrive in moscow just numbers were returned to q. u r a department admits it tried to bribe the captain of the running oil tanker at the center of a diplomatic round so they could seize a vessel. and a foreign owned businesses are looted in the south african city of johannesburg wave of anti immigrant. and complying funding planned to have them been prevented from the dead both sides of the scale much afraid speeds on that have flooded

schools about does it for me for the latest on these stories you can head to our t.v. dot com my colleague 7013 here in about 59 minutes time with news right now stay with us for the financial news and cultural. oh i'm max guys are this is the kaiser report and we're going to get in the some really important things there are embarrassed rounds for we are now so let's bring states you know i'm going to it quickly read the 3 have ions i have here because it's all about politics geopolitics and geo economics here the 1st fun because were in frowns i'll start with a french headline because this was from macro own and after chump leafs trads mccrone warrants world as living the end of western hedge a moni if we also have a headline from the us that match is this to my mind and it's from bill dudley

former ahead of the new york fed started and 2009 after tim geitner a left until 2016 them before that he was with goldman sachs for about 2025 year is the fed shouldn't and the able donald trump do 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 trumps new trade work tool might just be antique china debt collectors of pre communis debt or a lobbying the white house to force beijing to pay up president donald trump's next move in an increasingly fraught trade war were china could be one for the history books literally the trumpet ministration has been studying the unlikely prospect of were reviving centuries old claims on chinese bons sold before the founding of the

communist people's republic this was a 1911 and it weighs used to fund the construction of our rail line between honk who and shows you won and once the communist revolution happened and the people over through the 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 like e bay is 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 asian right so the loss of western germany that's a global ization this came in with trump and 2016 and he the idea 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 u.s. will default on some bonds to china. proximal a trillion dollars worth and claim that well we're just making good on the debt so you owe us to use 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 it's 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 d. globalization we've we've gone through these constant cycles humans constantly do it assesses 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 enlightenment 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 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 that 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 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 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 way way off the constitution that is to type tyrannical 1st of all when they since 1907 we 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 that's ever for them to be the 5th of patients and commenters you can go go go hey 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 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 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 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 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 be full 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 and 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 i don't find any maximally there now he won 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

with his you lay tional pick up the mantle of war that's the rub spear that's my question that's what my best one macro on is worried about and that's what he's saying and yes you say he's having to plan his own survival so this was going off a 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 team and then we come back in a roll and through the 2nd row. the

world is driven by. today there's things. we dare to ask. during the great depression which i'm old enough to remember there was most of my family were employed. there wasn't it was bed much worse objectively than 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 was shaped by the 10 principles of concentration of wealth and power. reduced democracy

attack solo doubt engineer elections manufacture consent and other principles according to no i'm jones to one set of rules for the rich ops etc. 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. welcome back to the kaiser report imax keyser time matter return to our conversation with mark malloch who publishes the annual gold we trust report look

at this player that's not last time it's. very least you could 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 the increment welcome back hi nice to see you again let's get into part 2 here i want to touch briefly on the interest scene 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 big crowd some and because of 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 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 sell peter chef who's a prominent anti bitcoin and go. person will say will of is a just another fee out money he has a see it as hard money as commodity money at all so and you are business think big

quite in 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 in the turn of the store of value. is kind of the final insurance policy for central banking system which has 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 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

a spot of store over the and i won't be from a put 40 a minute shipment 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 of them have to bet the house an idea of these so it's 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 is tangible all it's divisible it has every quality you would have 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 the us 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 native interest rates during his time and there was nothing called pick on him based cryptocurrency so he is he's been trumped by big quine now let's move on so russia russia central bank has been buying all quite aggressively month after month year after year what do you think's going on there well that'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 within the next month so they're very little debt and they have very little of us doubt that to g.d.p. right so so that's quite an interesting 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 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 as asian people or russia are saying look we don't want to be in the dollar america. as it's. we're tired of the censoring you know we want to do business and there's a school of that war 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. and 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 to me 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 really 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 they're 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 i saw 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 yeah you have to does it 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 positioning themselves for a post dollar world at the good dollar eyes 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 jerome 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 from 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 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 1000 and so on so so nixon 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 still this whole discussion is overblown because i think. at the end of the day the market is pushing the fed so if the youth in which it has 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 yield curve

it's really flashlights going on sources 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 politburo 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 of the flash and that'll create some tax revenue it will pay off our debts 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. that's. 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 asset value to borrow

money to inflate the ass of again until you have that minsky moment of a crash where there was 987 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 everything bubble is perhaps the hostage of a series of bubbles which would shoot. 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. austria-hungary empire going back a few 100 years that the interest rates have not been this low in the bonds or 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 only 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. anybody to enter the u.s. you might discover their core 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 economic. some things just cover briefly imagine stock. in this kind of a cross crosses between big gold what is it how is important and how's important

because in particular the other it's a good point and that's perhaps one of the very central points of why we view gold differently than for instance mainstream banks mainstream banks if they arrived in though this is about gold they usually have it in their commodity commodity in the assist department and this is just like supply and demand then the penalize supply and demand but the big difference is obviously that gold supply is huge the. 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 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 annual flop because the happening coming up in 2020 that the mining output is which

is the flow versus the hoarding stock people have. that goes through a significant event correct write it off every 4 years and basically it's the inverse of inflation i think that's a perp's an easier way to start to realize it it's like 1.5 percent in with gold and austrian economists dream this is dream currency not to mention high and steady inflation everybody loves it even lunch in china i 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. like this guy well we have to say goodbye but thanks for being on a concert for place where we are that's going to focus this another cause reports me max kaiser is. mark ballas but our guest incremental get this but you get it for free and 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 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 programs. there's no reason the more. you take things that are to me the. movie 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 if we can't even have a conversation of that it. ready is this is a stick from the water bottle phone in the stomach of the fish the brand is spawns of the coca-cola company which soon is millions of bottles of soda every day the idea was that let's tell consumers they're the bad ones they're the litterbugs are throwing this away industry should be blamed for all this waste the company has promised to reuse the plastic. look absolutely. essential kind of just fun to me. on the new.