you know. something i think i would like to. get more of. a journalist who chooses his former network n.b.c. of trying to impede his pulitzer prize winning exposé of harvey weinstein's alleged sexual abuses and he also names hillary clinton among those standing in the way. i saw families attempt an escape from a kurdish camp in northeast syria after it was struck by turkish forces the pentagon says it is not responsible for the prisoners in the area insisting that is turkey's job. 16 are killed when shooting interrupts friday prayers at a mosque in brooklyn afonso it is one of the deadliest attacks in this. region in months. about 60 minutes time farmer is here with a look back at the week's top stories but don't go away yet the reports coming up

next the latest. hello this is max kaiser this is the kaiser report you remember the wizard of oz and dorothy said if you click your heels 3 times and say i want to be home you get home something like that and of course it's an allegory about the gold standard how apropos anyway just repeating the same entre over and over again has magical impacts stacey yes it has magical impacts throughout history of course during that time was a period of time similar to what ray deleo says we're going through again today then 1920 s. t. in 1930 s. and one of the theories or propaganda that emerged during that time is if you repeat a lie often enough it becomes the truth so with that in mind here's a tweet from paul krugman nobel economics laureate debt is money we owe to

ourselves debt is money we owe to ourselves debt is money we owe to ourselves that is money that it only makes us poor in aggregate if it crowds out investment which is isn't doing that at our level of about the vote that at that at the thought that i see that's the straw man the cowardly lion dorothy or a munchkin you know but paul krugman is making a couple of bold 'd statements there number one that we only know money to ourselves and number 2 it's not crowding out productive investment and this is of all the outrageous really moronically things this guy has said this is got to take the cake well of course on twitter if people write in all caps usually that's a sign of they're not very well up here so i think he seems to be doubting himself even he leaves an exit at the end which when he misspells you know if it only makes

us poor in aggregate if it crowds out investment. which is isn't doing right of course it's crowding out investment you know we've got a country we've covered many times it's a dysfunctional emergency room that takes up 1718 percent of g.d.p. disguised as a country we've got a crumbling infrastructure roads bridges tunnels are not working we've got students that are a massively in debt and probably will never add to the productivity of society all because of this the propaganda that debt doesn't matter we just know it to ourselves but of course failing to mention that as a baby boomer who came on line came into his career when interest rates were 16 percent on the 10 year note thanks to paul volcker he's ridden the wave of lower interest rates this entire time and pocketed that money handsomely and he has some merit to say he's a victim also because this truth is so unpalatable to the unwashed that he would

make more money if he actually told the benefits of what would be a non keynesian approach the economy but he sticks with his kenyan approach and he takes the cut in pay or that their new york times because i'm a victim own plonker argument all these flash economists out there that are actually talking about the real economy or getting paid more than i am are absurd to avert their mobile or growing baby boomers so what age were they in 1981 when we went off the gold standard while they were like 161-718-1920 years old they were the 1st in on this pyramid scheme that became this global system so of course they're going to love the system you don't want it and they've had free money forever but debt is money we owe to ourselves and what he's saying he's not saying ourselves the baby boomers ourselves he's saying generations easy and some of the money else so millennial is are now putting every day items like shoes in sweaters on payment plans of course this is the layaway plan that we all know here in

america if you grew up during this. seventy's you went to sears and you put things on a layaway plan right usually to buy a washer or dryer a big item for your home your sofa refrigerator things like that well here millennial is are now doing that with sneakers or shoes or a sweater so they're putting it on the layaway plan $100.00 item and this is a result of this pyramid scheme where the mantra has been said for the last 40 something years is money putu itself. sells really really really really it is it is there not to mention 30 percent of it or more is foreign creditors so it's not even statistically or factually correct it's just like repeating the same boulder dash over and over again hoping nobody mentions or understands or notices that it's completely nonsensical and he's bankrupting the current generation yet he's a guy who got in early on the ponzi scheme and he's pushing this mean that debt is

only something we owe to ourselves that has no consequences financially even though you see the financial problems developing with your eyes if you're opening your eyes people open deaf it kading in san francisco in los angeles as the infrastructure of society collapses because the investments been crowded out by the rise of the engineer rise in asset prices due to the manipulation of interest rates lower as we've been talking about for quite some time but he seems to think that oh i happened to have some assets that went up a lot in price therefore i must be right. and the fact that i've subtly caused an enormous dislocation and enormous poverty remember infant mortality rate america is up your life expectancy is down this is how pyramid schemes get sold m l m schemes all those. marketing ponzi schemes is because there are indeed genuine winners and if you're in 1st you are a winner and of course they believe it they believe no kids why are you being so

negative it's so easy but i mean. i am generation x. after paul krugman of jenner he's the baby boomer generation i know for a fact my costs of going to university and you sail away were a lot cheaper than what they are now i was able to pay for my rent and lived on my own pay for all my books and i was an english lit major and that's a lot of books pay for a university all working part time at a stationary shop and brentwood so i could do that then can anybody do that now no but i did have to pay it like going like i couldn't put it on the layaway plan i didn't put i didn't take out any debt so in a way it seems easier to most young students now it's like oh i'll just take out $100000.00 loan to take out the next 4 years and then you emergence of this burden of debt that never goes away in a deflationary environment right i mean just swap out paul krugman 2 words and put

in you know how bernie made off with say this the one percent return i get every month for 25 years is money i pay myself i want the one percent i make is money i pay myself the one percent i make is money i pay myself as bernie made off so paul krugman is saying bernie made off was a genius bernie made off of his ponzi scheme are the example of how you should run the u.s. economy even though it's causing an increase like i said i mean how does this guy read the other parts of the newspaper that's the talk about infant mortality rising life expectancy declining open definition in major cities across the nation there's even the i mean this is this is the sign of guilt as well i think because there are these things called affirmations that a lot of you know people too much time on their hand tell themselves they feel guilty so they tell themselves affirmations i had i knew a person who inherited a huge fortune and this person then spent all their time telling themselves that i deserve this wealth i am worthy of this wealth i am better than most people like

that this person literally had to tell herself that all the time. no it's all over the house and stuff like that so here again like let's look at some of the consequences debt is money we owe to ourselves debt is money we owe to ourselves german banks start passing negative rates to retail clients now that germany's 2nd largest cooperate of lender has started charging retail customers to account for negative interest rates other german banks are worn warming to the idea bloomberg says berliner vox bond is applying a negative point 5 percent rate on deposits of more than $100000.00 euros deutsche bank and commerzbank indicate they're considering similar moves germany's banks have resisted passing on negative rates to resell clients but have run out of ways to offset the effects on earning so they're coming for this is this is customer a and customer b. they're both german they are ourselves this is debt we owe to ourselves that we owe to ourselves what they're the 2 people are ourselves person a and person b.

and person a has a savings account with 110000 euros in it and we were going to take some of that to pay off all the bad debts of a customer a big that's that's what he means when these are debts we owe to ourselves right and of course that's degrading they savings of the economy it's also causing massive kind of non productive you know of the economy and i mean this is only getting deeper what these negative interest rates are only getting more pronounced are coming to the u.s. as many of our guests predicted yes mark you sco said recently that 38 percent of the companies on the s. and p. $500.00 cannot meet their current debt obligations from current earnings so because they just rack up debt because that is money we owe to ourselves and they just keep on paying it to stay flat you know of course that is that is the mantra of course of fracking as well like they have never made money in 10 years but they just keep

on saying this is money we owe to ourselves and julie and julia and they're never going to wait 20. doing it and that results and things like this have by in the repo market is one of the many side effects of the insane belief from central banks that they can create enormous distortions in markets and somehow prevent the collateral damage is create a tsunami expecting to manage the wave. yes indeed they are creating a tsunami of bad debt and expecting they can manage the results of this catastrophic natural disaster and this is a financial disaster due to the financial pollution of all the junk debt that's been pushed into the economy and causing massive dislocations and there's the i mean the most appalling thing that we're going to saying there is that the debt has been pushed up productive economy when we know for i mean when j.p. morgan is now being investigated for criminal racketeering and that's the biggest bank in the us you know that that's the result of interest rate manipulation and

this montra we only debt that we owe to ourselves jamie dimon is not being investigated as a mafioso criminal racketeer and the new york times and paul krugman is giving him his blessing is disgusting so i mean let's continue on this topic of debt is money we owe to ourselves and the fact that the central banks and the likes of paul krugman these economists that work for the central banks they hire thousands of economists who spend the day sitting in a room at the federal reserve bank of new york of st louis of san francisco of atlanta they sit in these rooms and they say debt is money we owe to ourselves that is money we owe to ourselves and they write it on the chalkboard and this is what they do all day long and they must you know you see this reflection a fractal of everything around us our geopolitics is a reflection of our central bank policy we've created these monsters of debt and we have it has to we keep on telling ourselves it's just money we owe it to ourselves

right it's going to be ok it's going to be ok and they keep on doing all sorts of q.e. for ensure intervention in the repo markets you know asset purchases all sorts of stuff negative interest rates to try to control the disaster that the intervention they had before what we've intervened all over the world geopolitically to sustain also the global economy and there are corporate. if it levels and so every intervention leads to another consequence another nation we must invade another you know so we have these like monster is everywhere we look. holding together this this fragile economy with too much too many interventions and all one has to fit just one has to fail the whole thing comes down and there is paul krugman cheerleading on the sidelines theory who. does a fan favorite will be in the 2nd half to go i stay right there.

what you've. just. said that it's so. close. to the moon with tradition.

so what we've got to do is identify the threats that we have it's crazy confrontation let it be an arms race off and spearing dramatic development only personally i'm going to resist i don't see how that strategy will be successful very critical time to sit down and talk. welcome back to the kaiser report i'm max kaiser it's time now to go to fan favorite alister michael out of gold money that com as always for this cause or i am an investor in this company alister welcome back hello max already let's get

into this so alistair nobel economist paul krugman says that debt is money we owe to ourselves and it keeps repeating this like a rhesus monkey over and over again debt is money we owe to ourselves some kind of nervous breakdown or what have you but he keeps repeating this over and over again what is he trying to say they're your thoughts well i say i saw the tweet as well my response to it was he's got to believe because without believing that the whole of any argument he has just falls apart i mean what he ignores is the fact that you know debt is owed by different people. to different people and you know a debt is a debt simplest thus. you know the homes saved. you know this debt these debts are being pushed on to future generations and as we talked about the 1st half of the show the current generation and the future generations are having to inherit this debt so it's not debt that they owe ourselves i mean

a step that they have to be cleaned up by the future generation so he's just pushing the kicking the can down the road and a most kind of greedy way allister precisely that he obviously works on the basis that he thinks debts never need to be repaid and in a sense this is what people think you know they take and they don't think it needs to be ripped repaid and the people who are most of course are governments right and of course. i don't understand why i keep repeating this mantra of some kind of self-hypnosis i gasp as you point out if they if they were to shatter the illusion here there are a whole paradigm what would cry. bull now let's move on to german banks for a 2nd they are now passing on negative interest rates to their retail customers you have been warning about this for a while isn't this what paul krugman is talking about customer a is made to pay the debts of costs or maybe be through as actually wealth confiscation the banks simply doing while confiscation for one guy giving it to

another guy alister you're absolutely right negative interest rates basically rob the save-a and pay the borrower 'd to borrow is this complete lunacy. right so let's talk about european banks because i guess the idea was these negative rates are going to help european banks but in fact they're hurting european banks and if the timing the banks why are they keep doing it even if the bank of international settlements just reported that the bond buying programs are distorting markets alfre well with entirely i mean you know if you if it hurts when you bang your head against a wall stop banging your head against the wall i mean you know it's complete lunacy what they that and i mean we know that reducing interest rates doesn't work but it plays to this idea that interest rates are an unnecessary costs for borrowers

progress however you want to define it i mean that's complete nonsense interest rates reflect the future possession of goods compared with current possession is his time preference but of course central banks don't understand that they merely think it is a cost of money they think it is usury they would rather do away with interest rates completely they have a right and whether of course they find that there are consequences i'm afraid we're all going to find out in the next year or 2 probably in the next month or 2 i mean this thing is speeding up quite rapidly i think yeah let's talk about. well your latest piece and your latest piece your research can be found on gold money dot com and these are a must read pieces especially in these times where you've been talking about what we now see unfolding you've been preparing folks for it now it's all happening you predict an inflationary depression how is that even possible aren't all depressions

deflationary. well no it depends how you define deflation i mean deflation is should be contracting contracting quantity of money but of course it's used to define if you like a an implosion a slump in business activity which is actually a very different thing you can quite easily have a slump in business activity while a purchasing power of a currency goes down the toilet and that i'm afraid is what we're likely to see because the central bank's response to a slowing economy an economy that's threatening to move into all of the slump because of the credit cycle happening at the same time as the trade tariff war between america and china. the response from central banks will be to print print print and one of the things that they will do at the same time is they will reduce

interest rates to the lowest level of possible in order to inflate asset prices in order to inflate the valley government debt and it worked for their time but sooner or later 'd people will wake up to what's happening to their money and they went by the government debts at 1.5 percent 10 years in the case of america or minus whatever percent it is in germany they'll stop doing that and they will realize that actually government debt is only as good as the promise from government and when they begin to doubt that promise from government then we're all going to be in deep trouble right so it sounds actually like stagflation as i understand stagflation you have a business slowdown with prices going up sounds that sounds like stagflation and i think i believe if i'm not mistaken this is what we saw on the 1970 s. and oil price was going up do the big oil embargo causing prices to go up but

it caused the economic activity to. slowdown is that a fair comparison well i mean you may you may call it stock face but if you look back to the weimar republic i mean these those are exactly the conditions they had at that time and we should worry about that to get our terms correct here i mean every time we talk about and if apply for our conversation about inflation and deflation and stagflation and how do you define the is it the quantity of money entering the system is it prices of stuff at the cash register you know this idea of inflation i'll throw in another idea hair inflation versus hyper inflation hyper inflation is one trust in the currency evaporates y. mar republic comes to mind so people just don't trust the system anymore and that would be hyperinflation so they if i'm correct and and that's when you see currency collapse and so the primary currency that seems to be under the gun right now the

one that's in the crosshairs more than any other current say i would have to be the dollar right. yes well i mean all the major currencies are in the crosshairs i mean if you look at the race of growth of money in china for example has been running at a compound rates i estimate of about 12 percent in the u.s. it's been running about 9 a half percent i mean tooting incidentally the money not in circulation which is basically the bounce sheets of the central bank the race of increase in japan is somewhat less i think about 4 or 5 percent in the same sort of rate in in the euro said i mean the fact of the matter is that. and japan have been pushing on a bit of string they've reduced interest rates to negative figures you would think if keynesian economics had any relevance in the real world that the race of

expansion of money supply in japan. and europe would be considerably greater than it is say in china which has had has the highest interest rates of the 4 and america which is a next highest of the 4 but this is this is not what's happening i mean the fact of the matter is they will print they don't understand the printing does not work all it will do is it will bite time for business says which are on the verge of bankruptcy an important point to realize this inflationary depression if you like is that we are moving into a slump borrowers who are marginal if you like and in terms of productivity sorry profitability are finding that life is getting more and more difficult the banks are loaded up with junk desks and put all this together what happens people start backing off and when the banks start backing off from the marginal borrowers the junk in a race it junk then i'm afraid that the whole thing's knoebels and i really do

think that we are potentially on the edge of that chasm right now i imagine why mari public your thoughts let's talk about rate ballio i'm sure your read has staffie. runs the biggest had from the world in connecticut is very prolific puts out a lot of research he said we are entering a similar period and the result will be similar to fascism communism period of the 30 so he's making a big an analogy between the 1930 s. and current situation your thoughts. well i think it's right to compare the economics of the 19th thirty's with one big exception in the early 1930 s. we had sound money in the form of gold the dollars that you used where exchangeable into gold before 933 so it was sound money and that is why prices collapsed this time it is different every time there's just the stress of what the central

bank has called deflation you will find they just print print print the result at the end of days more likely to be a weimar tough situation where they had no backing for the currency and they used to them as a means of funding the government deficit just like in america today just like in a in the other nations as well but using it for that purpose basically means that you do degenerate into a hyper inflationary situation and the other thing to bear in mind is that government law ellipses are rapidly escalating you may recall back in 2012 laurence 'd kotlikoff well the net present value of america's future welfare bill it says we're talking about health and so on and so forth was $220.00 trillion dollars now that was the highest estimate of a lot but if you were if you just pause for a moment and think how that is cut to late it is calculated on the basis of current

interest rates now if we're going to see interest rates go to 0 then effectively those long term liabilities become infinite and someone should surely wake up and understand the arithmetic of this it's actually quite a crazy situation well our of the and salty thing is that krugman tries through talents one of the most egregiously outrageously and unbelievably on hands from reality as he claims that good businesses are not being crowded out by all this cheap money funding all these banks and. that of allowing it to flow into the real economy and that's just so horrendous to make that comment when clearly. i'm sure from where you are over in the u.k. and from where i am in the us all i see are zombie corporations and zombie banks being fed by this cheap money and all the productive capacity the economy is definitely being squeezed out alister yes i mean that the political consequences of

hyperinflation or you know real loss of currency is going to be extremely unsettling and just just bear in mind what happened in europe in the 1930 s. i mean the comparison we've got to look at how small this is what happened in germany. you know if you like what happened in america all right let's back it up there on that point in another segment thanks for being on the cause report ouster that's my passion that's that's going to do it for this edition of the kaiser report with me max kaiser and stacey herbert i guess douse michael out of gold money dot com if you want to catch us on twitter skies are important i like somebody else.

would hope to do something to do. put themselves on the line they did accept or reject. so when you want to be present. want to be. 2 going to be approached this is what the 3 of them will be good. i'm interested in the want. to. join me everything on the alex salmond show and i'll be speaking to guests of the world of politics sports business i. also you.

know there are 142006 i was substituting for a 5th grade class all of sudden it's kids come bursting in a library really agitated one of the boys to the health and on the way he collapsed the next morning syngenta was denied denied tonight we were not spraying anything but the teachers had actually gone out and taken pictures when all this chaos was going on the school and students were being and they were spraying right in the fields right adjacent to. a follow up study was done on that $32.00 page study the last 4 pages or the chemicals that they have found. we have shown an association between organophosphate exposure as measured by those metabolites in the mother's urine during pregnancy and shorten just station abnormal neonatal reflexes.