you know. i. i'm i. force the suspension of. government to quit the capital. and u.s. intelligence report accusing russia of social media operatives of attempting to sway the 2016 presidential election trumps faith. and the french interior minister over his handling of the fatal islamist attack at the paris police h.q. last week. and check out any of their stories and more on

a website called the cause a reporter is heading your way next. time to give you the latest global news updates. hello there i'm max kaiser this is the kaiser report the show that goes there. days hey max by the way you know it's just a week and a half from today that we will be imposing tariffs big tariffs on european goods this is a bit of a shock in the past came out of the blue we were in these trade wars cold wars civil wars we had all these wars flying back and forth alone behold suddenly we start sanctioning well imposing tariffs on european goods and this is based on a w

t o ruling that they decided that in fact air bus had provided $7500000000.00 worth of subsidies to air bus from the european union nations so we get to impose some and of course child picks out all the nice foods if he doesn't apply you know he famously it likes things like hot dogs and hamburgers and burger king stuff and donal's and junk food so he's applied it to things like stilton cheese ing google and 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 our 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. 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 dead certainty is 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 $10.00 or 20 up to between 10 and 25 percent of the various tariffs being applied but 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 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 us 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 accountable 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 an ounce over 20 years it takes to afford just an average property in the city center paris oh about 15 years now and london has jumped to just under 15 years so what do 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. all sorts of people not just young but like a whole range of classes 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 and it's not a 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 shot 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 who are 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 than al you've got social unrest as you have during a moment 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 . germans are famously don't like to go too much into debt you know 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 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 yes about 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 now for a couple of years that he that he's looking for the pitchforks and the torches the mobs in the street to come after the people like ray dalyell 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 when he says this 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 when people get angry and we split it's a fascist. communis and that's what's happening now and this is part of it this tweet here i have from ben records 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 time low money is not circulating is being forwarded in these properties it's being hoarded by guys like ray dahlia as he points out himself and not just like accusing him he says he can't spend more than that he's already by god 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 speak up so velocity of money means that the

treasury would print a dollar and you'd buy don't it and then the person the donna shop to get your dollar goes and buys a hammer and then that hammer at the hardware store guy goes and buys a and other done it right so it's circulating that yes it's philosophy healthy economy it's moving sir but what has happened sense 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 don't word it yet they keep giving it to people that are unable to spend it so we know the ordinary american is what really paycheck they don't mind without it. small medium enterprises now they let it out to property speculators yes people are buying expensive artwork yes or they put it back on the balance year the fed for an interest rate right so again if the circle

is extremely tight it's 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 re 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 economists 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. congressman ask fed to consider developing national digital currency to u.s. lawmakers want the federal reserve to consider creating additional dollar 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. uncertain 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 have currently developed or are looking into developing a potential currency right i saw that story and that plays into what we've been talking about here because if all these stations create digital currencies script of currencies they 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 countries the velocity of money with skyrocket wages would go up and you would see the club talk or the kleptocracy class would be challenged i would quickly in this last few seconds here say that only big queen is digital gold this is essentially all coin and this will put all those all coins out of business because there's no reason to hold libra there's no reason to hold the ios or ether or any of the other that's allowed to be another impact yet at the

current crop of all coins would become extinct yes. now it's great for because now we're going to take a break when we come back much more coming your way don't go away. in this connection to the last campaign ask for the last company and seeing and on

the rest of the facts from the commission. branson just shoot on disk in the. leeching mom. you know new car so said i'm not going much to you mama it's just back to you and. welcome back to the kaiser report i'm ask either time out of turn about fire style of planet policy that comments welcome back emacs 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 rich my expertise is the 1980s was in the creation and develop new products you really are products oweis the state of the our products macs 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 remark 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 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 the age of bankers we've discussed many times their 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 he said his answer is in 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 are causing 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 harridan aversive 17 trillion 17 trillion dollars in negative you in bonds this is the kind of problem you get unintended consequences that's when the fed steps several hundreds of billions of dollars as they did with 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 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 seems it's 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 liquidity into the market every day so the only market operations that they have will become permanent and it will probably go back and put on by goldman recommended that they dominate by 20000000000 a month so it's good q.b. i don't care what they call me a bit of a you know it entered into a place right now where we will see eventual negative interest rates in america i said this 2 years ago is 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 go. bankrupt is a normal market mechanism that allows insolvent institutions and insolvent corporations to go bust we have. 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

a normal amount of money is the definition of on but because there are so low interest rates and negative interest rates we've got children pouring money into illiquid investments to get some kind of heal so when that happened eventually it's going to span and it's going to end really badly. you know we're one of. you are so you know being slaughtered on people who have been with there's a high you should be trading above 10 percent for you 'd straightening where investment. is reduced 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're all venture capital lies they've got to these 102-030-4050 1000000000 dollar valuations now the market's 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 on congress saying these enormous

street protests is this are these 2 things connected is this a can tell in effect on display image absolutely max but here is the wrong surely join in france you see anywhere mentioned in the media the state. newsmedia it is fate news they don't cover in 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 housing 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 problem is the price isn't skyrocketing so 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 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 if 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 joe biden's $3000000.00 to bed flat 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 it was people who quietly suppressed 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 if you 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 so i 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 gemini for quite a while you a dollar is in the reserve currency for a little over 100 years before that sterling was even for a reason. 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. yes for exactly nothing military you have does have the biggest military and they repay the debt. so we really like you.

and the us and certain other countries where your service much higher than your ruins your ones with it that's when the really negative interest rates. otherwise you will default and so will the flow happen you'll love it because you will from savers the negative you will be on. somalia around the world that's just feelings of seeger'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 go on it goes on so it is born it. will 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 szell security and medicaid excess or medicare it all adds up to 260 trillion and that's that's

an economy the economic base is 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. all right well that's going to do it for this edition of the kaiser report with me max kaiser a safe there would like to thank our guest misfires stein of plan a policy dot com you can catch us on twitter a cause a report or a cause to report dot com until i find bio.

do you really get the. solution what he needs its 1st step. he wants to from the digits of the fixed. costs. to live with finish so smooth over. the mud that you don't know. it. feel. old. girl off boy.

you. freak. thank you. for those collaged along with

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