most o.c. of. hello there max kaiser this is the kaiser report yes we're still in paris oh my love for all things stacey just grows by the minute every time i'm here in the city of lights stacey and the city of love it's called re well you know it while we've been here there has been a new fascinating term use for what you've called financial terrorists and it used to be called financial repression remember all these low res declining rates negative rates quantitative easing was considered financial repression it was repressing all throughout the at conning me for the better of the whole economy

well here is a phrase financial vandals and it's an interesting one pension world reels from financial bendel ism of falling yields and they speak to mark doubting the chief investment officer at blue bay asset management he has he has pension fund mandates and he says about these ever declining rates that quote the true badness is pension funds being forced to invest and assets which will be guaranteed to lose such as in the case of long dated inflation linked to guilt real eales of negative 3 percent he said it is financial vandalism and the government and central banks need to wake up to this my brother my brother but because of what they're sure what could just a people stop me and say you know you know what because so if that's your message yes i'm going to my blue area in fact his granddaughter granddaughter said i look like graham going through blue period but let's talk

about financial by vandalism for a 2nd so you know as you point out there was a term floated about called financial repression when. interest rates were under the inflation rate so people had a negative kind of repressed feeling about how the economy was working and it was couched in economic language in davos speak and how policymakers needed to engage in this type of policy to restore integrity to the banks or some other phrase that they would do is then to morph now into financial vandalism means that the press the mainstream press what we were we were accused of talk about heterodox economics when we pointed out that the phrase financial repression is just a euphemism for stealing and people say oh that's heterodox economics you don't say that on c n b c or a.b.c. or n.b.c. or b.b.c. because it's not orthodox it's not what all of the elite and the economists who go and get their doctorate from universes chicago is not what they think right now the

heterodox are becoming mainstream because of this phrase called financial vandalism so people are out right under recognizing the fact that the policies of in the interest rate setting whether there are 0 or negative it's about transferring wealth up it's about moving trickle up financialization where the bulk of the economy is earnings go to the top 110th of one percent now i have often used the phrase financial terrorism that will probably become in vogue in the next 6 to 12 months we've said that we have a global empire of debt and that is its currency it's a us dollar since 1981 we've had no gold backed global unit of account to spend the u.s. dollar and nobody knows how much they print we can't ever really know how much they print it does give them an exorbitant privilege and we've talked about this being a period similar to previous periods in history or an empire that begins to decline it always happens as hemingway might say slowly and then all of

a sudden it's just it's seems to be coming all of the sudden recently that the empire is. noticeably declining when you have the likes of mark carney saying this to a meeting of central bankers you know mark carney the head of the bank of england saying this to other central bankers and in jackson hole i was inside close enough when he says that so here vandals of course you think of the visigoths of gotham they invented is at the edge of empire and eventually the people let them in and say yeah take everything because you know our emperor doesn't care about us anyway and then. but vandalism in this case they're starting to recognize here these pension fund managers are recognizing that vandalism we think about it is petty willful and destruction of property i would posit that the empire in this case the maker is the dollar and all the central banks that are part of that system

they believe it's their property anyway it might be in your savings it might technically be in your pension fund right now on their balance sheet but they can take it whenever they want and they are taking and right there when there was a book that came out you know 25 years ago barbarians at the gate talking about a hostile takeover of our jr nabisco and so on wall street this idea of barbarianism or financial vandalism or financial or greenmail as it was called activist investor or leveraged buyouts is accepted at a certain echelon of wall street but they've run out of all the assets they can strip so now they've come to the general population the mom and pop out there in their pension account their savings account they are applying the same vandalism to your savings account yet other the barbarians the vandals of wall street are now actively plundering your bank account with a negative interest rate in a sonic amount of policy there's no economics behind it that would chew to any school of economics that has ever existed as dr michael hudson has said since the

bronze age it's just out right barbarianism and we've covered that for years i mean either. the whole retail sector in america you know hundreds of year old retailers like sears are you know they totally collapse once the barbarians get a hand get a hold of the company because what do they do they strip the assets by loading it would that they swap all the equity for a debt all the assets for and that all of their pension funds the real estate they swallow all of it and they just leave a carcass there and it right and then it collapses like this immediately comes from the central bank of the central bank is saying that the reason we keep the low interest rates low is because we need to create inflation now we understand that in fact they've created deflation because by allowing those cheap rates to filter into the barbarians pockets to do the leveraged buyouts they've destroyed all the productive real economy all the real jobs and all that's left are drug dealers

jamie diamond and more much will always happen slowly and then suddenly and you could have people he hawing ensuring income inspection are on twitter about like it doesn't cool it. doesn't collapse but the thing is just like sears took 1520 years to destroy because they keep on loading it up with more and more debt and making it a negative net worth of the company you know as much as they can until it just evaporates like sand like it just disappear overnight and you're seeing that with these pension funds we did warn that this is where these negative race where quantitative easing because they they signal this by the way and it was like 2011 at davos where they said we need $100.00 trillion dollars with a credit well somebody has to be the other side of that trade right and it's these pension funds because peter borg dorf at dutch fund p f z w blamed that ever lower interest rates for its coverage ratio that now stands at 94.8 percent at the

end of july he said quote the financial situation of peeved f z s w is starting to get dire a pension reduction in the year. 2021 has been threatening for some time but if we have a coverage ratio at the end of this year that is lower than around 94 percent we should already reduce pensions even next year right pension accounts should not have been raided they're going to go back to leveraged buyout artist of the 1980 s. in the barbarians at the gate one of the tactics was to borrow against the pension account of a corporation and then by the corporation and then sell off the pension account and raid you know the company in that way now they've applied that to across the board global pensions everywhere are being raided and through this artificial of the of intra ultra cheap rates to appease the barbarians and the result is catastrophic poverty and to people say they don't see it happening yet i mean when you have people deaf it caving open deaf occasion in san francisco in los angeles i

would posit the you've reached the end game talk about more about this financial vandals because where does that go where is it heading and it's only going to continue to get worse until all of these pension fund monies are gone as they say that positive feedback loop leads to the plunge annealed responding a vicious circle for the industry the squeeze on returns tends to widen funding gaps forcing managers or employers to inject more cash into the plans that's money which would have otherwise been used to fuel business or consumption so economic growth may take a hit boosting calls for even more monetary easing the real economic growth is being squeezed out that's where you would get genuine inflation enough to generate tax revenue to pay down debt but instead they're causing deflation by making money cheap enough to have the vandals in the barbarians buy all the productive assets and steal all the pension money and sues squeeze out the productive economy that's

deflation if you go on twitter and look at bloomberg or c m b c they're saying the same thing that it looks like quantitative easing and negative rates may. because we've been saying on this show for almost 10 years now then we've been called all your heterodox economist now we're just calling it i don't mind being heterodox because that's outside that nobody wants to be orthodox because you become stale you become old keeper cam you don't think clearly and you think this is the way things will always be and that's what that's what has been happening that's why our economy is a disaster but and terms of what j.p. morgan says they said the overall impact is that lower yields can induce households or companies that act as plan sponsors to save even more for their future and our conversations with clients the experiments of central banks with negative rates are viewed more as a policy mistake rather than a stimulus you know when they've always been a policy mistake and they're going to go deeper into negative territory to double down on the mistakes because on again on wall street they've always worked on the

martin bell betting system where you keep betting on red at the roulette wheel and so you win that's great if you have an infinite amount of cash you will eventually when the goldman sachs does this all the time they always report winning trades every single day for quarter after quarter after quarter them no risk but if you do it the overall cost of mean say we're going to keep doubling down on betting on something like deflationary lower rates to stimulate the economy but eventually you do in the case of the real economy you do run out of money you don't have an infinite credit line what we're talking about here is europe europe is the one with negative rates the united states is the only investment grade economy left with positive rates there is actually a yield they pay people there they could mark a day this is it well they are the empire of the debt pyramid they have the u.s. dollar all other currencies reference the dollar euro trades against the dollar not against any of the dollar doesn't trade against the euro if you try to open

a euro bank account in america. you can't do it if you want to have a bank account here in france and deposit us dollars there they will accept it. not in the u.s. we are that yes is the caribbean there where the croupier and we found the barbarians and they also will be more after this short break don't go away. with this manufactured. public wealth. when the ruling classes project themselves.

nor middle of the room.

i'm back to the kaiser report imax kaiser time now to turn to royce of gold money dot com and many a dot com full disclosure we are investors and both of these fine establishments roy welcome back thanks for having me max it's always a pleasure to be here yeah it's awesome because we talk about macroeconomics and then we talk about markets because you have a background in trading and you also have now i guess you could say or a start up guy with minae is really a start up in the gold space which is interesting but let's talk kind of a macro because really want to get your thoughts on this and dig into the royce of grain sack here mark carney the head of the bank of england u.s. allies says and i paraphrase the u.s. dollar is toast and the world needs to prepare an alternative ok one central bank

to criticizing another central bank what are your thoughts on this it's interesting it's sort of the new phenomena you wouldn't think that someone would be. about criticizing the world's reserve currency is he right he's probably partially right but i think in his case i had a tweet the other day which expressed my view that i just think he's one of these revolving door types that sees an opportunity to leave the bank of england and get a big fat paycheck from one of these new crypto you know what is thrown down the gauntlet right away or the corrupt out the way to get the crypto religious holder so i think this was sort of you know a clarion call but you know his bank account is open to the highest bidder like a central bank for hire right it came from bank of canada that it was a moved over to bank of england it came with george osborne and ladies friends of tam i think he sees that there's a sea change and now he's up to as you say it's

a revolving door and you know. with this is just a they get of that because the revolving door between wall street and washington is quite profound shifted know it so that's why it's so washington to silicon valley so the new the new wall street is so a convoy you know wall street is is the ninety's nearly 2000 but post occupy wall street we now have silicon valley is the new ok of us i think so like you had you know goldman sachs all as their finger in every pocket type of thing they you know what you meant traditionally you would join up with the world bank or the i am out party become an advisor to some country and so they had this matt taibbi called it the vampire squid so you're detecting a shift a little shift now and that's lower value didn't tell you more about that well the new goldman sachs's you know facebook or google or. and you can see it in the way that these corporations behave you can see it in how they've

tried to initially start with all these ideals like don't be evil and one little political cycle has already destroyed that you know they're no no longer doing town halls and google and i just think that they've become far too powerful too quickly in the american system based on a fiar currency and sort of these infallible central bank thinkers and academics leads towards power being concentrated in the most efficient way and i think that especially in this day with the internet and our attention spans the power isn't in controlling cop at all in sort of a classical sense but in controlling information and so these 3 or 4 organizations today not only control information but have become very good at manipulating information which in turn minute manipulates the minds of the people so yes they're the new one obvious example of that i guess would be

a labor rights of faith. but they trend that trying to transition now from a social network and connecting everyone you know their motto for so long sense of it to getting into actual money creating a money and different central banks around the world have come out and voice their objection to this like oh my gosh you know they're painting with the central banks and i guess that would be the most depressing you know biggest example of that what you say why i think that shows sort of how powerful they've become that they'd have the audacity to create their own currency and do so in sort of an open way even while they're being you know investigated by the government for all these great violations. it's too early to tell where the libor is going to go my initial read is that it won't go anywhere and it'll just kind of fizzle out because there are still intelligent people in the military industrial complex and the treasury

department i think that understand the importance of having a sovereign currency even if the people at the federal reserve are seeing dollar signs by revolving out of the fed into some of these companies i still think there are a core group of legacy individuals at the treasury and other departments that will never allow it to happen in the central bank realm for for the central banks. you know you over there a cold money. have been talking about this for a while and we see central banks are buying a lot of gold they would also seem to be agreeing with mark carney that when there's a move away from the u.s. dollar as world reserve currency if they're buying so much gold what we thank you i agree i mean i was here with you last year exactly at this time and i think that i made a few predictions some of which panned out some of which did not but on the whole i think that the greater predictions i made the bigger ones did in fact

a lot of the things. depending on in-form work soward way. who would have thought that one year later there'd be all this political upheaval in places like hong kong and all over europe and even the united states i think that you know the way i try to think of the world being contrary and when my views become mainstream i try to sort of take another notch and become more contrary and so i would say at this point in history it's already settled that the u.s. is in decline it's already settled that the u.s. will lose its dollar status and now it's time to sort of take the edward given the decline and fall of rome approach and say well where are we because are we at the civil war ready stage yet you know are these shootings is the tenor of the shootings are happening you know by leftists and people on the right wing it could that be perceived as a civil war at this point in the history of america and so the way it feeds back to central banks decisions to own gold on

a global basis is i think they're preparing they're basically building a storehouse of wealth that basically is not tied to the bretton woods system anymore to the u.s. dollar system so it's more dig a little is ation d. dollar is a sham neo liberalism is finished an hour into a new period and that period seems to be going to be as many are punctuated or announce with some kind of civil war or pretty. violent uprisings are now happening globally in a seems to be all connected there was only a few months ago that our friend our not barry silbert over at his fund in new york to scale greyscale thank you. you know he launched that drop gold campaign it seemed almost to the minute mark a bottom in the price of gold you know you mentioned contrarianism this sometimes is when you find a signal out there amongst the noise when someone is selling

a shore of wonder. action markets can go in the other direction so now a sense than gold has been on a tear and it's all right it's hitting new highs and currencies all over the world i guess the british pound against the euro against the yen against any new pay almost every made up currency except with the dollar and it looks like it'll be hitting new highs against the dollar sent so i think i'll put it i have we had a new bull market in gold or is it the 3rd leg of a bull market that started in the year 2000 yeah that's kind of the academic debate let's put that aside for a 2nd we 1st of all the drop gold campaign i think will go down as one of the worst calls in financial history you know here you have this you know guy with all this hubris who's waging a war against an element i knew that was a mistake to begin with i didn't think that he would mark the bottom as you say but i think it's going to go down in history is just

a terrible call foolish call and i saw it as sort of my position to respond to that and just because i want to make sure that while the crypto world is doing what it's doing and i'm i'm certainly very happy that it's succeeding for all the reasons i've mentioned the past what i don't want to see happen is people in crypto miss out on having an allocation to precious metals and then if for whatever reason the crypto dreams don't materialize the way that all the eventually leave they will have missed out on owning gold and so if you're a diehard crypto fanatic you should still own some gold and what i thought was foolish about the grayscale campaign was they were trying to use gold ownership as a funnel into bitcoin demand so so i'm happy that i've sort of sparked the conversation and in a way it's almost sad the colds gone up so rapidly because already anyone that's

listened to that advice. has missed out on sort of a great diversifying position gold right well here at kaiser before as you know we have a tom a golf 1000 sent for 10 years. in the 400 i believe then when the big story became active in 2011 we were very much on that story we've always said that both deserve a place in a portfolio because they kind of a fellow similar roles when i look at silver and i look at that gold silver ratio which i got to like 90 are something which is historic divergence and i remember back in the bull run the one that made a move from 15 to 50 and they conditions that favor gold silver and because i've only now become more pronounced silver you know to me seems like. it seems cheap yeah it's been on terror and i've actually gone long a lot of silver and i see our clients getting along a tremendous amount of silver so i agree when when precious metals begin to move

silver and platinum and even palladium move as well and i think ultimately gold and silver will do the best in this period i don't know how high silver will go but i certainly agree with you 1000 dollars feels like 2 i think could easily have 30 or $40.00 on this let's talk about macroeconomics for a 2nd because especially in summer because people say they're buying it. because not because of inflation but because of affair of currency collapse hyper inflation what do you think about that i think that people buy silver for speculative purposes but because it's an industrial metal when speculative fervor returns to silver there just isn't as much supply and so it's sort of a very volatile and leveraged version of gold and i think it often coincides when

real returns or real opportunity costs for. returns is diminishing so all of a sudden you see someone like paul tudor jones buying silver he wouldn't be buying silver unless the chart told him to buy so i would jump in his eye warren buffett got 130 or 40000000000 in cash this was a huge cash position yet and we're in a world of negative interest rates is buffett going to sit there and get a negative return as cash and still talk the talk and be anti gold or is he going to swallow hard and say i was wrong i should be buying gold and silver and put that money to work in gold and silver and stop being such an ideological. sitting on that horrible cash i don't know you have to ask and that perhaps you can arrange an interview i can write a letter but in other words but. if you're a shareholder you if you would be say why study i cash to be buying gold and gold and silver well the shareholders of the religious cult otherwise known by the name of berkshire hathaway follow whatever the leader says so they're not going to

revolt in any way but you agree that the sitting i cash is not a great place to be of course not but i'm not sure if you're aware but mongerer recently in the last 6 months came out and said well even gold is better than big coin in other words he changed his view on owning gold when it's compared to something like a crypto currency right now that's interesting that is it we're going to pick up with that a 2nd to take a break have a front segment thanks for being on this segment of course and that's going to do it for this edition of the kaiser report with a mate max geyser and stacy i would like to thank our guests reisa wagner of gold money dot com and nominate dot com you can catch us on twitter at kaiser report or kaiser report dot com until next time by oh.

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