cheese ing good stuff like that not bring. one. you know this is what happens when you take the gold standard away from the world economy the way that nations try to recreate a gold standard is by imposing tariffs on each other to even things out and it creates an enormous bureaucracy and it creates an enormous need for banks to print . money and contracts and it creates a need for lawyers and it creates a need for all kinds of administrators which is great for them but it's a drain on the economy because that money could go into actually productive parts of the real economy supporting real jobs with real wages and real g.d.p. growth but we are opposed to gold standard of course by many decades now and so the need to create layers and layers and layers of bureaucracy and tariffs now new tariffs is what happens when you take away the gold standard eventually we will go back to the gold standard as we've been saying that will come back as soon as this

thing collapses which is now a dead certainty well speaking of dead certainties of course the air bus doesn't drop out of the sky as frequently as the boeing airplane so now unless we want to pay the 10 or 20 up to between 10 and 25 percent of the various tariffs being applied i believe it's 10 percent on air bus products so there is that but also you know it's interesting that you mention the printing of money and. like why is the fact that say for example the e.c.b. has printed more money than the federal reserve bank why is not that considered a subsidy as well like oh are we going to start getting down to that sort of micro level who's printing and cheating more they're all cheating essentially is what they're saying but some are cheating faster and harder than others right it's a form of cheating again when you leave the gold standard there's no way to have an accounting or a balance sheet that shows exactly who's trading with who and what a sorts of silly print money to cheat to undermine to try to grab a few extra pennies or euros here and there and that it is part of the scheme and

that is what happens when the f.e.m.a. money and central banks and. and and fractional reserve banking and it just ends up into this this huge enormous pyramid of paper that throughout history the past 300 years every single instance of paper money has collapsed 0 without exception now there's another thing regarding this printing of money for the various populations in order to avoid. acknowledgement of the fact that he no longer have a real economy because of the gold standard mostly now one of the things that we've always talked about is the can tell in effect because when they're printing money it goes to a certain class of people 1st a those closest to the central bank and then that goes basically to the big banks the big multinational banks and they primarily lend to housing speculators right so anybody who's already on the property ladder when all of this thing began. well they benefited from asset price inflation so i want to look at this headline and

this is a chart that planet ponzi misfire stein tweeted it's the number of years a skilled service worker needs to work to be able to buy a 60 meter squared or 650 square feet flat near the city center and i want to look at in particular the top 3 of these cities because in these top 3 cities since 2009 this. little dark circle on the left for hong kong paris and london is where cost how many years it took to afford a average 65 meter square property in the city center and hong kong it was 10 years in paris it was about 12 years london it was maybe 9 or 8 or 9 years back in 2009 now look at the jump since then hong kong is now over 20 years it was 10 years before and now it's over 20 years it takes to afford just an average property in the city center paris it's about 15 years now and london has jumped to just under

15 years so what do you when you think of especially hong kong and paris. you think of all the protests going on the very very very similar they both look exactly alike you have police shooting out people's eyes and you have young off sorts of people not just young but like a whole range of classes i those who are outside who do not own already a 65 meter squared or 60 meter square property in the city center versus the rest right in a star coincidence that those are 3 of the must widely trafficked and most often used financial hubs in the world these are the 3 biggest of some 3 of the biggest finance hubs in the world so in those areas the cantillon effect as you call it the the ability to keep standing on top of the money pile you're printing yes and so you're you are building your own paper mountain and you're standing on top of that mountain and everything i'm there standing on our fine art you know that you're

buying for $100000000.00 a crack or a chateau in switzerland or a new lamborghini so you're standing on this mountain of paper money that you just printed for yourself and the people down down river were now in the valley the valley of poverty are they're throwing rocks with them but you're getting higher up the paper mound so the rocks don't reach so then they have to get more agitated and they get more organized and mal you've got social unrest as you have during moments in history when the underclass decides that they've had enough and munich is the top of the german cities that is overvalued or at least has jumped the most you know germans or famously don't like to go too much into debt you know i used to be in 2009 it was 5 years and now it's it's close to 10 years and i think frankfurt is pretty high as well there are also very few assets that people can buy so this is it mean this is the one last investment in our global economy it's all based on

it's all basically. as we pointed out before the assoc not where all our entire economies are backed by the value of homes it's always worked out as you see in hong kong paris the same way like it always ends up like this so being the french version of the council in effect and monetizing property in this case church property to flood the economy with bad credit bad money and any pyramid scheme in a pyramid scheme so are and were in the new pyramid scheme of the 21st century pyramid scheme and the people that are getting abused by this pyramid scheme are starting to get extremely agitated as ray ballio he's the runs a bridgewater in connecticut biggest as far in the world he keeps pointing out for a couple of years that he he's looking for the pitchforks and the torches the mobs in the street to come after the people like great value he's warning folks yeah you should go read his linked in page and he posts some interesting blogs the guy's

worth like over $10000000000.00 and he's just as an event he's a successful investor and what he says it's like i just look at history i'm just looking at this objectively and neutral i'm not taking a side i'm just telling you that this is very similar period of time right now between you know the 1920 s. and 45 essentially the late 1000 twenty's in 1905 is why people get angry and we split it a fascist and communist and that's what's happening now and this is part of it this tweet here i have from ben rickert and it shows that the velocity of money is the frequency at which one unit of currency is used to purchase domestically produced goods and services within a given period of time in other words it is the number of times $1.00 is spent to buy goods and services per unit of time all time low the rise in the circulation the velocity of money people spending more money congress happened exchange happening the trickle down effect happening was in the ninety's up to 2000 and then

it's been down ever since and it continues to hit all the. money is not circulating it's being forwarded in these properties it's being hoarded by guys like ray dahlia as he points out himself i'm not just like accusing him he says he can't spend more than that he's already i got so many chateaus and yachts that he can't buy anymore he would forget about them you lose you know ya you forget you have a house in you know in mustique or something yeah the economy is being choked out so here's a unit of currency this is a dollar this is the dollar you speaking up yes the velocity of money means that the treasury would print a dollar and you'd buy done it and then the person the donut shop to get your dollar goes and buys a hammer and then that hammer at the hardware store guy goes and buys a nother don't it right so it's circulating that yes it's philosophy and healthy economy it's moving slower but what has happened sense and all the bailouts of 2008 is that the central banks keep printing more money and they print trillions of

these things but it gets stuck at the primary dealers and jamie diamond's j.p. morgan because it gets choked out they don't they don't lend it out they don't circulate it they keep it they can word it yet ringback they keep giving it to people that are unable to spend it so we know the ordinary american is literally paycheck they don't mind without it small medium enterprises now they lend it out to property speculators yes people are buying expensive artwork yes or they put it back on the balance here the fed for an interest rate right so again if the circle is extremely tight it's not a wide circle of the entire economy it's a little minuscule microsurgical like the tip of your pinky where the money is circulating only amongst 3 or 4 people and they keep getting wealthier and wealthier and that's why we as ray dahlia points out the tipping point of huge revolutionary social unrest yeah because also of course what happens is. all this

stuff all of our economic problems are caused by these economy. yes at the central banks is this false thinking that somehow they are superior and understand the world better than all these schmucks out here in the world in the real world so that is part of one issue that central bankers and bankers have is that if that money does circulate down and ordinary people the bottom 99 percent start raising their living standards they freak out like that is the scariest thing to them and they think that it's going to be like oh my god you know this is this is going to cause inflation and so they seem to prefer mass deflation as we have they hate gold because they don't want anyone to have proper savings because they have economic sovereignty they don't want the law exposed as well and they don't want their ponzi scheme and pyramid scheme destroyed that's what gold does to paper money ponzi schemes and finally you know speaking of paper dollars you know that used to be backed by gold well u.s.

congressmen ask fed to consider developing national digital currency to u.s. lawmakers want the federal reserve to consider creating additional dollars in a letter sent to the federal reserve chairman german pow representative french hill republican of arkansas and representative bill foster outlined concerns that they have risks to the u.s. dollar if another country or private company creates a widely used crypto currency and ask whether the central bank is looking into creating its own version we are concerned that the primacy of the u.s. dollar could be a long term jeopardy from wide adoption of digital currencies internationally the bank for international settlements conducted a study that found that over 40 countries around the world of currently developed are looking into developing a digital currency but i saw that story and it plays into what we've been talking about here because if all these stations create digital currencies crypto currency is it would increase the velocity of money and it would get countries away to move away from the dollar and the dollar is feeding the very specific ponzi scheme so it because it is digital gold because in a would be a crease velocity and there is incredible there's very very little friction between

these digital currencies amongst the. trace the velocity of money with skyrocket wages would go up and you would see at the club talking at the kleptocracy class would be challenged i would quickly in this last few seconds here say that only big coin is digital gold this is essentially all the coin and this will put all those all coins out of business because there is no reason to hold libra there's no reason to hold the 8th or any of the other vessels out to be another impact yet that the current crop of all coins would become extinct yes good for a bit coming now it's great for because we're going to take a break when we come back much more coming your way don't go away.

on this conventional moment allows him to ask for the past 70 and seen and done today for the french pro who should. soon. be in the long. beach you. know new car so sit on the open much to mama it's just that.

what holds an institution. they put themselves on the line big get accepted or rejected. so when you want to be president and you. want to. have to be right to be 1st this is what before 3 of them or can't be good that. i'm interested always in the waters about how. they should. in this community there are people who believe that it's ok this other excellent food on my table it's really hard there are no jobs and you see that i've got kids that ask and as a parent. i can come up with lots of arguments and there's

a lot of conflicts within the games and between the teams most of the conflict i would say throw balls around money and most of their money is made. close one on each other because he knows each other is good business the state of california alone makes $6000000000.00 a year of the prison complex just to get some 20 a life where. you don't care anymore no i cares about you so you don't care about anything. welcome back to the kaiser report i'm ask either time out of turn about firestone of planet policy that comments welcome back here max great to be here all right 1st

let's remind the audience what exactly you do or what you did or what you do when you are a wall street banker briefly what is your area of expertise mitch my expertise is the 1980s was in the creation and development of new products you really are products oh he's the state of the our products max as we've discussed in the past. so. looking for opportunities where there are no other competitors in less crowded fields i think that there are too many people in a crowded space like all of the people are jumping in on the fang stocks we've just had momentum over the past couple years all right so you're a contrarian you're early and to all kinds of different things are embedded in the wall street heart for many years and as someone deep in the heart of global fiat what do you think when you see events that happened in the repo market over the past few expect well i wouldn't for value so you know when i see something wrong in the repo more repurchase agreement market it reminds me of what happened with

drysdale securities back in the 1008 we had a real problem a disconnect in the repo market so there's 'd something very wrong and if you ask the experts and speak with them on wall street folks know you that is certainly technical but i don't know that it is true he technical i think that there are a lot of the big money center banks that are too big i mean look to asia bank which he discussed many times the balance sheet the dollar rotten derivatives that they have on it truly trillions of dollars in derivative products j.p. morgan too big to fail too big to bail out too big to exist oh who's that is that never really broken up its fed has entered into the markets every central bank on the planet has added lemons and trillions of dollars in with quickly and that means guarantees for certain different asset classes the central banks have caused the problem max this product is just one of the ancillary issues that we may

be seeing now when they when you create so much liquidity and carry purse of 17 trillion 17 trillion dollars in negative you in bonds this is the kind of problem you get unintended consequences side that's when the feds step several hundreds of billions of dollars as they did at this. rape maneuver just recently is this the beginning of quantitative easing is it the same as quantitative easing is it there for the quantitative easing i look for the smells like quantitative easing on the short hand that is why what how does it differ well i did the permanent open market operation so they're going to be adding liquidity 'd and eventually they're going to come in and whether they want to call it q e 4 q e 5 we've discussed this before it's genius vanity they will have to do q.e. and they'll have to do it for the end of the year as repo issues not going to go there's a shortage with enough market the fed as to come in and do something the only thing

they can do is keep adding work with it into the market every day so the open market operations that they have will become permanent and it will probably go back to the on by goldman recommending that they dominated by 20000000000 a month or so is good q.b. i don't care what they call me been today you know it entered into place right now where we will see eventual negative interest rates in america i said this 2 years ago why i think that we're in a whole load of change i think we should have done back during the credit crisis is never will go bankrupt is a normal market mechanism that allows insolvent institutions and insolvent corporations to go bust we have those back in january i highlighted the we were ponzi scheme months later atlanta i said they're trying to sell this for $47000000000.00 they lose the normal amount of money it is the definition

of on but because there are so low interest rates and negative interest rates because children pouring money into illiquid investments you get some kind of the yield so if that happened eventually it's going to hit its fan and it's going to end really bad. no. you say you know they're being slaughtered. people who have been with there's a high you should be trading above 10 percent fine 'd you straightening where. the world is. already covering a lot of ground there let's just review some of the thoughts that you have so you are saying that quantitative easing for our q e 4 is baked into the cake we're going to see that very soon you're also saying

that negative interest rates are coming to the united states what that means is that as least in europe what we've seen is that people get a negative interest rate on their savings account ultimately at the bank which is the same thing as confiscation i don't know how else you could possibly phrase it and you're also saying that the unicorn market in the venture capital bit is where they didn't have the benefit of a public price for these stocks for many years they were all venture capital lies they got to these 102-030-4050 1000000000 dollars valuation is now the market finally saying hey wait a minute it's really 80 or 90 percent cheaper or in the case that we work it looks like they're going to go bust it looks like this company is going to go to 0 this looks like the enron of venture capital mitch but you know in the 1st half we covered your chart about the housing bubbles the top 2 cities in terms of the jump since 2009 in the length of time required to afford a home or hong kong and paris both of these cities are now mired and on

rest this year they saw in paris obviously and in hong kong we're seeing these enormous street protests is this are these 2 things connected is this a can tell of the fact on display image absolutely max but here is the wrong julie joy in france you see anywhere mentioned in the media the state. newsmedia it is fate news they don't cover of the real important stories you go back to the beginning and go into the housing bubble it isn't sample of central banks gone wrong using the world's largest hence funds speculating in markets and what they've done are inflated the most protest as a well in the history of this plant which will cause the next credit crisis which will be a crisis of the fleet now going back to the correlation between house prices and income since the beginning of time there has always been a correlation between housing prices and income if you take it in terms and you

look at them from 1981 and you inflation adjust their flat to negative to up small whereas house prices have skyrocketed exponentially it's an example of a bubble so in a lot of these cities this is creating jobs because of the ancillary instructions services and everything around that surrounding that the volume is the price of skyrocketing so you you walk down main streets which are decimated in the high streets in england and the rent has gone up so much that the mom and pop stores are all gone so you know they say to reasons that amazon is that the prices have gone up so much that it's not it's not cost effective to own a business anymore you go back you gave spencer much on your rent so there's the correlation has blown out so something has to happen nobody has the money because all the good paying jobs don't exist anymore to buy weeds $3000000.00 to bed flats

where you have massive oversupply so what's going to happen with that you know protests in homes on a protest in paris because the most of the population can't afford to live anymore and they're going to raise that of everything and so their protest and so what do they do in france for that marathon has outlawed protests now so you don't see it on t.v. anywhere you. hear about it those people who quietly suppress it so there can't be any more i think you know the to a larger extent the same thing happening in the u.k. with over 1194 days ago the people 52 percent of the people gave a mandate you are meant to leave here and they still haven't left because parliament doesn't want to leave yeah exactly well you know i predict that it will never happen it's a simple fact that they don't have a constitution so that a constitution the stoic if they get anything as complicated as that out now let me

ask you this about mark carney the bank of england he recently warned from jackson hole of all places that the us dollar is toast that it's no longer works as a global reserve currency this is interesting because he's a central banker and it seems like he's breaking ranks with the other central bankers by calling out the u.s. dollar we've got some interesting in warfare in the central bank class match what's going on here lou we've been speaking about u.s. dollar a gemini for quite a while you have a dollar is in the reserve currency for a little over 100 years before that sterling was even for a reason this is right now. america has $260.00 trillion dollars so eventually people are going to say well what's her. promise like dummies to repay the debt. yeah back on nothing military us doesn't have the biggest military in they repay the debt. so we just really like you.

and the us and certain other countries where your debts are. much higher than your revenues your ones with it that's when the really negative interest rates because you realize that otherwise you will default on the debt so will the flow happen you'll love it 'd because you will from savers the negative you will be on. somalia around the world that's just stealing from seaver's it's long been a lot of fun here in italy 4 trillion dollars in debt never won't be said the people are laughing awfully well this. is all just going to go on it goes on so here is more to. be clear when events in the u.s.'s $260.00 trillion dollars and that they've got about 20 or $22.00 trillion officially and that and when you add in the unfunded liability of style still security and medicaid excess or medicare it all adds up to 216 trillion and that's that's

an economy that economic basis 17 trillion so that's unsustainable and so that's why you see interest rates going negative is because we're in that deflationary death spiral of doom heading to op salute that apocalypse metric we're going to have to carry over to a 2nd segment because we're just so darn interesting thank you very much all right well that's going to do it for this edition of the kaiser report with me max kaiser as they say i would like to thank our guest misfires stein of plan a posse dot com you can catch us on twitter a cause to report or cars to report dot com and i find bio.

seems wrong. but old rules just don't. mean you get to shape out just to become educated and in detroit equals betrayal. when so many find themselves worlds apart. just to look for common ground. so what we've got to do is identify the threats that we have it's crazy one foundation let it be an arms race is spinning dramatic development only hastily i'm going to resist i don't see how that strategy will be successful very critical time time to sit down and talk. why a paradise with so much all year round turned into a round the experimentation field but agricultural chemicals we know that these

chemicals have consequences they are major irritants there's no question otherwise why would that the chemical company workers themselves be geared up and suited up locals attempt to combat the on regulated experiments but often in day you have many of these people one foot into the biotech pharma and the other foot in the government regulatory bodies this kind of collusion is reprehensible while the battle goes on the chemicals continue to poison hawaii and its people so one has to ask the question whether there is a form of environmental research going on in hawaii whether these companies feel they can get away with this because the people have less political power. and. it's.

not. the wrong joins the chorus of condemnation of turkey readies for a massive offensive against the kurds in northeastern syria with reports suggesting ankara has already bought into the area and deploy its military hardware on the border also ahead. it's revealed that senior u.k. doctors were aware that blood donated in the u.s. and given to british patients in the 1970 s. and eighty's could have been infected with hiv and hepatitis we hear from the son of a victim affect. the department our.