that i 1st wrote about barron's and the san francisco examiner more than 2 decades ago may have begun right the dollar short squeeze the fascinating topic. this would be deflation according to the deflationists out there and the collapse of the bond market the credit markets. continued despite all the money printing despite all the attempts to reliquefy banking system doesn't matter the internal machinations of the bond market as it's traded internally by banks is continuing to collapse and on the surface this is not reported because it's too hard to speak of the fact that a credit markets reach such a state of disrepair disrepair that it's. causing a run on the dollar and

a short squeeze on the dollar in this way but you know rick is probably correct and you know the it's just a corpse basically and they they can't keep it animated we've had so much money printing we have negative rates we have all these things to keep the system alive and most people feel like really great about the economy jobs are booming wages are rising house prices are booming everything is ok we also felt like that in 20062007 when we were reporting in the financial news at that time we did you know i remember you going on france 24 when in january of 2007 there was a flash crash in the chinese stock markets it went down something like 1520 percent in one day and everybody around the world including wall street they were all like what is going on so they were like crazy movements leading up to the financial crash of 2008 and. this is before they begin to paper over really violence will he and aggressively but so here we're looking at. similar movements this could be

something or it could be nothing but here rick ackerman says regarding the run on repose it is curious that a dollar shortage develops and one specific market at a time when dollars remain only lost in the exhaustedly available in so many others mortgage money is not tight nor are percent teaser loans for any credit card holder who is not in prison big companies have no trouble borrowing billions of dollars to buy back their shares borrowers in the repo market they're potentially like short sellers of a stock that has suddenly become unavailable which is to say they will be dead ducks on that inevitable day when even a slight whiff of panic wash through the battery of people in the repo market the repurchase agreement business who are putting up collateral for short term ones you

know they don't while there's a penny i mean it's ok to lose a bunch of people in the mortgage market it's ok to disenfranchise the entire black community for example as we did in 2008 for for a laugh it's ok to crash the stock market periodical you for stock holders who are unhedged and they get wiped out i mean or it's ok to wipe out a country like breaks it is doing because of the interests of hedge fund managers who are looking for the next greece that's off for fun and games but in the repo market it's the guys with a lot of money that i want to lose any money so they don't trust each other so the interest rates go higher so they're there they're unwilling to lose even a penny that's why they're there they're charging each other exorbitant rates because they're cheap i mean they're only lending for overnight and yet they're not trusting each other the people in the mortgage market credit card. there is those are the dumb money that those people don't have any idea they believe you know all

things are great whether they tune into fox news or m s n b c they think life is forever eternally perfect and the fed will always bail them out so they're happy to spend and spend and spend but these banks have asymmetric information they know a little bit more about the true state of the debt and the derivatives and the deflation that might be coming down the road they also many people are suing that this was perhaps one bank like deutsche bank that was that is insolvent and so we won't know that until later it could be a hedge fund some people are suggesting as well so we won't know the fact that we want now until it's too late is part of the problem this time the fed handled the problem without breaking a sweat the next time however the cost might run into the trillions of dollars which is to say more funny money than the central bank can gin up on short notice when this day of reckoning comes the banks won't open the next day nor will credit card transactions clear although there is no way that even a prudent person can completely protect him or herself from the fallout it seems

likely that those who hold treasury paper and gold bullion as insurance will fare better and those who don't and just does go on to say like. that gold is looking good at these prices and in this situation that is better to get it now while these just little tiny signals the smoke signals are sent out occasionally that you're seeing the early you know the tremors ahead of perhaps a bigger earthquake now it's also interesting to know if it's in the scheme or idea of interest rate apartheid. more you know if you're not part of the in crowd you you have to pay exorbitant fees on your credit cards are living in a bantustan of bad credit by design and it's a way to keep the society in check from uprising right because if you are keeping them all isn't debt and on the short term credit crowd those are high quality

credits and they wouldn't dare take any risk at all and you know i see the same thing in the way food is regulated right because for a lot of a large part of the population they have a certain standard in the food regulatory regime about certain number of rat hairs they allow in your food for example and that's that they're acceptable or but for people who are dining on the short term credit market it was you know on champagne on the highest possible standard you know it's food it's apartheid in the food business all it's up everywhere is apartheid now that's the model whether it's food credit security in from drugs pharmaceutical opiates heroin is just we live in a new apartheid state of course that we have we live in a command and control financial system this is possible under fiat's currency however the problem is that there is always an underlying real economy and real banks and real debt that has to be paid so these are the fact that we have

a command and control around a real economy that's never works because eventually the real economy rises up and they. they overwhelm the control that you have over it so whether or not we're at that moment it could go on another year another 3 years another 10 years but at the end of the day we're at the end of a system of this fiasco control command and control and you know i mentioned so here you had the repo market big banks primary dealers let lending to each other overnight and using supposedly great collateral as the basis and yet they couldn't even borrow for 10 percent overnight here on the other side here's a story from this talk dot com house flipper lending his 13 year high what can possibly go wrong the dollar volume of financed flip purchases in the 2nd quarter of this year jumped 31 percent annually from $6400000000.00 to

$8400000000.00 according to adam data solutions that is the highest level since the 3rd quarter of 2006 so home flipping is back and lending to home flippers is soaring it's up 31 percent in the 2nd quarter of this year he talked about the real economy and how these things impact the real economy well in the real economy companies are earning that are going down yes s. and p. 500 earnings have been going down for 151617 years now it's masked due to stop buybacks but the actual company is losing money yes our retailers are shutting down by the thousands across america you go to the malls now and it's half empty and the wages of course are going down adjusted for inflation they're going down even more the real economy is dying. it's close to completely dead.

the financial eyes economy the fake economy the home flipping economy the repo market should jive economy because i've got to make a payment on my yacht in greenwich because i'm an ex long term capital management fraudster living in a saloon and i need to. pay that market is doing great but that's the real economy that's a market driven by a. potentates and charlatans and neo feudal meisters sitting on their throne of easy credit spigots that's not real but the repo market signaled something is going on at the very very top those guys own yachts the people not lending to each other weren't even able to borrow for 10 percent overnight they've been motwani however an investor with iron gate development in washington d.c. area expects to flip about 15 homes this year he says it's always smarter to use a mortgage because you get leverage you can do many more deals wright said might

want also the banks have become a little bit more easy and lending on this flip business they used to be a lot tougher so the dumb money is pouring in the money is there for the dumb money it's easy for them to borrow 1 it's easy for them to flip this also happened in 2006 right before they had world economy the real world economy went over the cliff . in 2006 which for 10 the 20072008 crash the real quickly the crisis really acquitted a crisis so q peter sure if we're back all right we're going to take a little break want to come back much more coming your way.

live. leg. length. live. live. live live. live . live. live. oh. please.

list some lists live. lift. and a very warm welcome to you watching on since last. it will round up with a lot of other companies out of. the set up one among them. a fine after 98 to hide nasty hi i'm i said.

months in the sun shone. from totally unknown to me but a lot of. then that it is someone who did the board. welcome back to the hazari part imax keyser time now to turn to mark used to go he's the c.e.o. of morgan creek capital management right here in north carolina we're going to get

to his thoughts on bitcoin in the 2nd segment but 1st we're going to discuss all things the current legacy if system as it continues to disintegrate but 1st mark i got to ask is it a kind of dressed on monday korea down there it is it is i i for guys in many. a suit it come on my show this just for a minute casual clothes so i was at all you know watching all your tweets over the past couple weeks travel around the world you're pretty cash but now you've now your suit. all right us all your socks that's good i got i got the flamingo socks going to the flamingo socks flamingo if i'm flamenco that would be a dance and i would be a dance and if these are the flamingos ok well more about that later but 1st let's discuss oh i shouldn't do that my sound guy hates it but it's too late now sorry about that. market you know what is it and how unusual are the events of the past few weeks and what in your mind is it telling us well it's telling us that there is

a shortage of dollars around the world how can that be because i thought they just print them up all the time willy nilly i think that is the common misperception is that they are just printed out of thin air and i think the challenge is that you know when massive debt is issued or incurred and then issued by the government someone has to to buy it and what happens is the money then transfers to the treasury and the treasury then hoards those dollars and so other people around the world have to scramble for dollars and i think that's what we're in the midst of here is a global scramble for dollars twice a little more strength in the u.s. dollar than we probably would have. anticipated given that they're devaluing it every single day by printing more of them but the one other piece that i think is interesting here is the information content of the fed having to intervene

in the repo market it was that oh it's not a big deal. $300000000000.00 is a big deal i don't care you know who you are who you want but it's a big deal and i think what it tells us is one of the banks perhaps more than one of the banks but at least one of the banks has a capital shortfall and that's what's having to be shoring up here is this the beginning of quantitative easing some have speculated that this is just the 1st steps that yes they actually government the coming in in there they're on the short end but eventually this become the medium and longer and this is kind of the beginning of human 40 you agree with that i think we're in q.e. for ever forget q.e. for me it's q.e. forever my x. it was less good than your north carolina access fine we're going to go another question because you make of that some badly let me ask you about this dollar strength for a 2nd so i know i said i get to pick on later but i got to ask this now you know because it has become a risk safe haven asset you know generally speaking that's that's the

mean that's been circulating i simply so it's a dollar strength is causing a little headwind because there seem to quite as bent $10000.00 back to $8000.00 spend stalling gold also stalling and you know people are making the equation between gold and because being somewhat lower. so a dollar strength it poses some headwinds to both these assets yes are not correct absolutely and one of things that should occur in a. environment where where the dollar weakens right that all should weaken if they're creating more of them that should actually be good for real assets but to your point we're seeing the exact opposite we're seeing scramble for dollars dollar strength and a weakening across the board of real tangible assets gold oil commodities and because so that signals on a big macro picture here if we can extend this a little bit deflation. yes regular days i talk about the killer disease all the

time so we have bad demographics every single day in this country 10000 people turned 65 same thing in europe so we get too many people who are older non productive non spenders not enough working age population growth we have debt massive debt in fact the deficit and debt more d's are rising at an alarming pace because of the fiscal irresponsibility in washington and brussels and elsewhere actually in tokyo as well so you have massive debt in the developed world and that all leads to ultimately deflation and what's interesting if you go back to the original quote i think was thomas jefferson who said if the american people ever allow banks to issue money. they will be they'll have their future stolen from their children 1st by inflation then by deflation so had the inflationary spike in the seventy's now i think we're in the deflationary death

spiral ok deflationary desk. this has been with us for a while now and the answer going back 10 years going back to 2008 was you know we're going to put a lot of money to bail out the banks and some economists out there were saying well that will cause inflation we'll see a gold spike didn't happen happen and in fact we've seen increased amount of deflation and the deflationary death spiral as are calling in this seems to be exacerbating and can we therefore conclude that this idea of printing money is not fighting deflation but or at the point where you can say it's causing deposits deflation absolutely there's no question that if you print more of something you create more of something again out of thin air it will devalue it and that has been the playbook really since the turn of the century i have this great chart that i talk about all the time from $776.00 to 1913 the dollar was. roughly

worth a dollar now had ups and downs around though the wars civil war cetera but from 1913 to today you know we've turned a dollar into a nickel so you know there's a joke from jay leno he says it was a rumor that the treasury wants to convert from paper money to a coin where to have it's called a nickel and so you know they've been doing a good job and to your point if you think about the issuance of currency particularly in the q.e. form to bail out banks that's what the central banks do that's their job ok banks are outnumbered 2nd enrich themselves when you're bailing out the banks and banks that should not get bailed out because i'm a horrible loans i'm a travel business decisions if we live in a free market cap of society they should go bankrupt in a way replaced with competitive bidding but by feeding the banks as they're called you're crowding out those businesses that could create productive wealth generating

businesses and jobs always right so that money printing if it went into a multiple velocity of money there was a real business creation s.-a m.-e. small the medium enterprises then you might get an uptick in the economy but it keeps going to the zombie banks of course that that's the only people that get access to fed funds i was the people to do borrow fed funds well no do you get your mortgage in fed funds rate no everybody else has the problem that the banks borrow from the fed and buy treasuries that is a risk list trade they levered up you know $1112.00 times j.p. morgan last year had 0 negative trading days. trading implies taking risk you can't have 0 negative trading to as well because they're not trading they're just levering of treasuries so it's all a big ball of bank in kabul and the problem is it's run by the bankers themselves right the people who control the central bank are the heads of j.p.

morgan goldman sachs morgan stanley city you know the new york fed and the treasury so those 6 people as i like to talk to about them the plunge protection team you know they get together on sunday nights and they decide who they're going to bail out they bail out their friends and their cohorts the banks and therefore banks then don't make loans anymore so people have to get loans from fin tech companies from peer to peer organizations so if you look at the velocity of money as you describe it has been plummeting for decades and it's not going to get better because bank reserves that don't get lent don't create inflation the way that some of those economists were worried about to your point it creates deflation and then the economy is a car and the banks are like got a big hose and a siphoning off the cash the guess well in fact it's worse you watch stranger things sure show strange things so you know everyone knows the story about the wizard of oz was really about gold standard and and the president taking off the

gold standard so what's interesting i was going through watching stranger things and the mind flayer you know the big thing that sucks the life out of billy at the end and i started thinking wait a 2nd i've seen that before somewhere in 1010 a guy wrote a book about the creation of the fed and he had a picture of this octopus that has tentacles around the companies and then all of middle america and the banks and then out of his mouth he was up chucking money into the banks in new york and i women they look exactly like the mind flayer and this you know octopi look exactly the same and then i look. at the federal reserve bank building and it looks like the national labs building 'd from stranger things right there is a little freaky they crossover between pop culture and finance you know robert proctor used to write about this a lot you know he was big in the eighty's with the elliott waves there and you do

see some interesting connections and a lot of times pop culture reflects what's happening in the economy in a vice versa so this brings us to course the big question is ok what is the cure because when. we forget that before we get to hard money what would be if you were running the fed would be the cure well to shut down the bad banks being would be my cure and because what about raising rates that's a good cure to his neck that right absolute disgrace rates because now the people who are only survive on cheap money because they don't have a viable business would go out of business yes well look. that was absolutely the cure percent agree with you and it's so funny back when yellen ms young was still fed chair i was on. one of the mass media outlets and they asked me what do you think she's going to do tomorrow and i said i think she's going to do nothing but what she should do is raise rates from 0 up to 3 percent and you know literally melissa like crazy what do you mean. that's what she should do but she won't do it

because that would put a lot of people out of business and cause a recession and people are afraid a recession is for some reason recessions this thing hashtag m.r. ga on twitter you know make recessions great again recessions are not bad they're not evil right they cleanse the bad businesses it's like every once in a while they burn you know around he had a little ism has ups and downs ok socialism is flat you know ups and downs but everyone's equally poor right ok. and happy and right yeah yeah these up it but you need the downs are orient up with just as flat kind of economy where you have a kleptocracy at the top who are fed with these low rate was your point about about pop culture right it's about zombie companies zombie apocalypse we had zombies on t.v. all the time. everywhere at this hour and so we have we have. 38 percent of the s. and p.

$1500.00 so the $1500.00 biggest companies could not in the last 3 years service their debt with their habit to forget paying off the debt they could never do that they can't even service their debt being a like a just a cash flow exact right so they aren't they can't even serve can even ask their own death of my their cash for they but there are things going on because they're buying back their own stock oh look apple bad company good products made the same amount of money last quarter as 2015 exact same amount of money but their earnings per share went up 20 percent because they issued debt and bought back so much stock with that stuff. q we if you look at buybacks it is just through the fed is not allowed to buy stocks like it's swiss national bank or bank of japan so i believe the treasury in the got there washington went to the big companies that will cut your taxes on one condition you have to take the money and buy back stock to keep this ponzi go. right ok we're going to take going to carry this over to other side when we're going to say goodbye for now thank you for being on the show thanks for

having me always great to be with you and that's going to do it for this edition of the kaiser report with me back skies are stacey i require to thank our guest mark morgan craig capital johnny cash just on twitter at kaiser report until next time i yell. because they call you so good that even such a bad clock be sending. i'm not. finding the next. top live on. something she went on plenty of.

the click some. of the deflection board for you to say. that is a good deal better than i got up from idiots are. going to laugh. about that that you can bank on. monologue you don't want to bottom this up in the streets alone control cannot. handle one new person and. move $100.00 gandhi the new normal gandhi. on the seas trust me to keep you know to you then again i'm ok you didn't even join you.

would hold his hands to you so. we put themselves on the line to get accepted or rejected. so when you want to be president and should. want to. have to go on to be prosperous what will befall 3 of them or can't be good that i'm interested always in the waters of our. first sit. oh bill bill bill. broke. the law. and. you know now.

has us democrats rallied to protect a whistleblower whose claims have triggered an impeachment inquiry we look at how they previously sought to prosecute those who were filled uncomfortable truths. i said norman of so-called flying shaming could reduce global air travel according to a new report we get 2 different views on the law so. i think the main focus is that you should be traveling friendlier if you can rather than getting on the plane they seek to restrict or freedoms or liberties to travel. completely and utterly unacceptable. there's the world a moment as a british museum warns art lovers about strong imagery in an exhibition of 19th century drew.