they are insolvent and therefore they're going to set off they are insolvent and therefore they're going to set off a cascade and a contagion. will be a continuation of the tooth out a cascade and a contagion. will be a continuation of the 2008 crisis but much much worse because in the 2008 crisis the response by southern a crisis but much much worse because in the 2008 crisis the response by central banks was to inject 16 or 17 trillion of money into the central banks was to inject 16 or 17 trillion of money into the system and the hope was that this would create growth g.d.p. growth and taxes them and the hope was that this would create growth g.d.p. growth and taxable revenue to pay down some debt but instead the banks simply took that multiple revenue to pay down some debt but instead the banks simply took that money and hoarded it on their own balance sheets and they in turn did not lend it

out into the economy they did not create any meaningful g.d.p. growth and in fact over leverage the economy 10 times greater than it had been in 2000 and out into the economy they did not create any meaningful g.d.p. growth and in fact over leverage the economy 10 times greater than it had been in 2008 so now the debt bomb is exploding or nay so now the debt bomb is exploding and the fed is desperately trying to cover it in the repos market and the fed is desperately trying to cover it in the repos market which is like trying to put that fire in california with a squirt gun so the find it which is like trying to put that fire in california with a squirt gun so the final settlement of a transaction that's that's cash that's gold that's big queen there's no count. party risk settlement of

a transaction that's that's cash that's gold that's big coin there's no counterparty risk these people in the financial markets do not want to swap that for these people in the financial markets do not want to swap that for any instrument with a counter party we're seeing huge rock any instrument with a counterparty we're seeing a huge run on the counterparty market nobody wants any any sort of instrument with a counter party and on the counterparty market nobody wants any any sort of instrument with the counterparty it would seem during the 192221 recession the decline in the monetary base it would seem during the 192221 recession the decline in the monetary base eventually made it into the broader money supply in this cause a significant drop ace eventually made it into the broader money supply in this cause a significant drop in price levels between 13 and 18 percent during the recession

with wholesale prices and price levels between 13 and 18 percent during the recession with wholesale prices dropping as much as 36 percent this is not yet filtered into the market perhaps dropping as much as 36 percent this is not yet filtered into the market perhaps it might not but at the moment even though it's down more than it was in 192021 might not but at the moment even though it's down more than it was in $192021.00 if the monetary base is the climbing then less means to service debt is available and could trigger massive if the monetary base is the climbing then less means to service debt is available and could trigger mass defaults cash becomes scarce and suddenly you have a situation where the fed has the faults cash becomes scarce and suddenly you have a situation where the fed has to intervene and the repo market like it has been over the last couple of weeks just to keep the system mr intervene in the repo market like it has been over the last couple of weeks just to keep. the system

going all right so going back to 2008 when this all started this is why pundits like peter should going right going back to 2008 when this all started this is why pundits like peter schiff got it wrong because he was calling for inflation yes and people like rick ackerman have got it wrong because he was calling for inflation yes and people like rick ackerman who are on our show were saying no this is deflation and now we see that it is a man or on our show or saying no this is deflation now we see that it is a massive deflation deflationary depression where prices collapse and of deflation deflationary depression where prices collapse and this is what we're facing now that's what they're suggesting of course this is the this is what we're facing now that's what they're suggesting of course this is the jump up you see a massive probably the highest percentage increase in monetary base jump up you see a massive probably the highest percentage increase in monetary base in the entire

chart since the beginning of the fed that did happen in 2002009 perhaps in the entire chart since the beginning of the fed that did happen in 200-2009 perhaps they they saw a different outcome that didn't know there was a bailout and it wasn't they they saw a different outcome that didn't well there was a bailout and it wasn't put into the economy they bailed out the creditors thanks to barack obama who made the put into the economy they bailed out the creditors thanks to barack obama who made the $180.00 degree wrong strategic the choice and set the country in the course of $180.00 degree wrong strategic to choice and set the country in the course of epic failure thanks obama and you see by the way that i got rid of that fighter that was epic failure thanks obama and you see by the way that i got rid of that fighter that was climbing down here i think it was left over from. oh the itsy bitsy spider i'm going down here i think it was left over from. oh the n.c. been. spider march more of that coming your way was just. after the. march

more of that coming your way was just. after the break don't go away. break don't go away. in the name of. the night.

live.

live. live. live. please. please. liz. liz.

let's. just say clay. play. play. play. very well mark until you're watching us inside. continue watching us inside.

and. rational. rational. designer. was that original of the needy thief.

a thief. more than a financial. more than a financial. if. you

i. knew i. was. going to get. you. to do.

welcome back to the kaiser report on the. welcome back to the kaiser report on nice guys or well we are fortunate indeed to have in the studio guys are well we are fortunate indeed to have in the studio with us in person david morgan of the morgan report david well with us in person david morgan of the morgan report david welcome back to being so i am paid to start when i get them back starts being so i am paid to start when i got there it's a dollar most people even though a dollar is a weight it is a weight of silver that's a dollar most people even though a dollar is a weight it is a weight of silver 371.25 greens of the in the in front of silver which is about 371.25 greens of the in the in front of silver which is about 3 quarters of a troyer so the treasury can't even get it right when they've been p 3 quarters of

a troyer it's so the treasury can't even get it right when they've been the new dollars that's a dollar on them says one dollar it's a 4 ounce which is new dollars that's a dollar on them says $1.00 it's a 4 ounce which is actually about a 25 percent gain around silver so that even though it's a wait it's actually about a 25 percent gain around silver so that even though it's a wait but let's let's get it so thank you so much and cherish this now let us but let's let's get it so thank you so much and cherish this now let us proceed as where you want to do i need to pick your brain proceed as where you want to do i need to pick your brain you know you've been in this business on time we've been doing shows together for a long time working you know you've been in this business on. time we've been doing shows together for a long time worst the worst of all the remember when gold was $2000.00 an ounce.

the 1st worst of all the remember in gold is $2000.00 an ounce. the feds repos operations are rapidly increasing in size and scale as repos operations are rapidly increasing in size and scale should we be alarmed at what's going on we don't know exactly should we be alarmed at what's going on we don't know exactly or are those actually but it's obvious there are some insolvency there's banks going to those actually but it's obvious there are some insolvency there's banks going to liquid the need to borrow and no one wants to go to the discount window of the fed for the liquid they need to borrow and no one wants to go to the discount window the fed for the borrowed money of last resort means something is drastically wrong so let's unpack on a bit now that borrowed money of last resort means something is drastically wrong so let's unpack on a bit because now our son is saying there's an insolvent thing somewhere in the

system and so why are you saying there isn't a solvent sitting there somewhere in the system and so why would and they don't want to go to the discount window right so explain more about we saw what this is all mean with and they don't want to go to the discount window right so explain more about we saw what this is all mean banks so there's an overnight lending rate and that's based mean banks so there's an overnight lending rate and that's based on bank to bank so every bank is required to have a certain reserve of kim bank to bank so every bank is required to have a certain reserve of cash on hand that they don't meet that required but they have to borrow overnight to meet the sasha on hand that they don't meet that required but they have to borrow overnight to meet this the law that's a regulation that's a sense that a certain reserves based on how much you've lent asked the law that's a regulation. that's a sign that a certain reserves based on how much you've lent out in that some sort of bank on

the reserves to maintain your need of some sort of bank on the reserves to maintain your ratio per law correct right seller got it so the issue per law correct right seller got it so to meet that requirement if you're short you go to another bank that might have an excess meet that requirement if you're short you go to another bank that might have an excess and they can loan you that money overnight and you pay a small interest for that loan and they can loan you that money over night and you pay a small interest for that loan and then the next day the books are square and life goes are however and then the next day the books are square and life goes or however if you can't find a bank that will loan you the money you can if you can't find a bank that will loan you the money you can go to the fed and say at the bar of

last resort hey i need to borrow to me and i would go to the fed and say at the bar of last resort hey i need to borrow to meet my reserve requirement loan me the money overnight well that's kind of telling deserve acquirement loan me the money overnight well that's kind of telling the system the banking system at large that. the system the banking system at large that i don't break will loan to me because i don't trust the bank that needs the money. will loan to me because i don't trust the bank that needs the money i have to go to the federal reserve to borrow it so it puts some caution i have to go the federal reserve to borrow so it puts some caution in the system because people or the banking system wonder why in the heck does this been the system because people or the banking system wonder why in the heck does this bank get rejected by every

other bank to borrow i have to go to the fed so a bank get rejected by every other bank to borrow i have to go to the fed so it's sort of the walk of shame to go that was fed by sort of the only one would have been another bend and go that asked the fed to borrow money when another bank or other banks won't do well and this is happening to get going we're going to but again the loan to do well in this and again and again and again as you watch them we get the same damage that we do we get a need a cigarette. tax at that end and we need to repot it extended so now your feeling is that this pertains to one institution so now your feeling is that this pertains to one institution in particular together that that is does not being named that that is having satirizing of all fallible. staying staying out of.

the same could be could be better material in a way the way it could be so could always always been all the banks are in the spirit leads into the compound that there is within their means if it is just means one if it is just goes to one and it goes falls then it hits 2 that it for the 16th there also falls then it hits to that it's. it's 16 they're all interconnected so it could take a door should be going down or like lehman all interconnected so it could take a door should be going down or like lehman where you see this interconnected this of these banking system where you see this interconnected this of these banking system large start to fail one goes down a bit of one who probably took everything with it it wouldn't go back purge started to fail one goes down a bit of one who probably took everything with it it wouldn't go back to the thirty's of critics but it was a very big bank and we really thought much of it core down in the last 2 thirds of

critics don't bet it was a very big bank and we really thought much of it done in austria but that was actually the 1st domino view of the system right and then and lehman brothers of course we are but that was actually the 1st domino view of the system right and then and lehman brothers of course in 2008 was kind of the domino theory. and 192021 there was arson 2008 was kind of the domino theory. and 192021 there was also a similar kind of collapse and. also a similar kind of collapse and. base my 1st 2nd to base money supply has declined by over 23 percent since 20 base my 1st 2nd the base money supply has declined by over 23 percent since 2016th this is by far the longest and deepest decline since the fed was created exchange this is by far the longest and deepest decline since the fed was created in december of 203913 the inflation

in december of 203-0913 the inflation deflation debate could be resolved soon and the winner could be deflation and deflation debate could be resolved soon and the winner could be deflation ok so the base want to supply has been declined 23 percent since ok so the base wanted to. as a client 23 percent since 2016 and that's the biggest decline on record since the fed was create a 16 and that's the biggest decline on record since the fed was created what does that mean what does that tell us well it does in the could it could be deflation is going to stir this created what does that mean what does that tell us well it does in the could it could be deflation is going to start of this career start of the public speaking circuit i was more of a deflation is that inflation rearing started the public speaking circuit i was more of a deflation is that inflation i got turned around so 4 years ago because because

jim did a study of i got turned around some more years ago because because jim did a study of all non backed currencies and everyone in or did excuse me all non backed currencies and everyone in or did excuse me in inflation but if you go back to earlier in the gold backed currency like we had in the foot in inflation but if you go back to earlier in the gold backed currency like we had in the thirty's was the liquidity in depression which is a depression i don't rule the reserves of debt liquidity in depression which is a depression i don't rule out entirely but i think it's unlikely in the game will go that direction well in the entirely but i think it's unlikely in the game will go that direction well in the point here is that they're the base money is the gold in the system today right here is that they're the base money is the gold in the system today right and so using that analogy. if in fact the base money and

so using that analogy. if in fact the base money is declining rapidly and you have an institution that's in distress or many institutions declining rapidly and you have an institution that's in distress or many institutions that are in distress and they can't meet their requirements then that's a set up for some to fall in or in distress and they can't meet their requirements . armin's and it's a set up for some defaults you know there's built in the system as you see we'll know it's you know there's built in the system as you see will know that if you can't pay a bond in to default on it interest rates will start shooting you know that if you can't pay a bond and you default on it interest rates will start shooting up which means the value of the bomb comes down drastically like what happened in the 1981 both up which means the value of the bomb comes down drastically like what happened in 1900 when booker was in charge which is hugely flay sure i mean think about interest

rates going to 10 percent who was in charge which is hugely flay sure i mean think about interest rates going to 10 percent no one could beat their debt obligations from the government side and you'd have a he sent no one could beat their debt obligations from the government side and you'd have a huge deflation in the value of those bonnes and so i don't again don't rule out a huge deflation in the value of those bonnes and so i don't again don't rule it out i think it's still a debate i think it's still open and i think it's to one of the other side of the inflation i think it's still a debate i think it's still open and i think it's to one of the other side of the inflation deflation cawing is something called hyper inflation right send otherwise it's not all deflation cawing is something called hyper inflation right said otherwise it's not all that fun bad for gold and silver investors to have deflation if it means you have a currency collapse on bad for gold and silver investors to have deflation if it means you have a currency collapse correct and so we've seen currency collapsing all over the

world gold's made new all time high correct and so we're seeing currency collapsing all over the world gold's made new all time highs against just about every currency in the world except the u.s. dollar we're already seeing guys against just about every currency in the world except the u.s. dollar and we're already seeing currency collapse right now and it is benefiting gold and silver exactly in the further you're poor and see a collapse right now and it is benefiting. well that's all or exactly in the further your point if you read the golden concent by professor jester him his whole point is the golden age if you read the golden concent by professor jester him his whole point is that gold is best and deflation have taken into account that would be most of the study had to do with the gold is best to deflation have taken into account that would most of the study had to do with the gold backed currency in most of the sectors of the study but nonetheless it's a good bet currency in most of the sectors of the study but nonetheless it's a good point to keep in mind inflationary depression adult liquid and depression

aren't that much more to keep in mind an inflationary depression than a deliberate in depression aren't that much different in one you lose faith in the currency altogether you just absolutely different and one you lose faith in the currency altogether you just absolutely don't trust it at all and in a debt liquid in depression currency becomes valuable again don't trust it at all and in a debt liquid in depression currency because the al you bowl again and people of course trust it so you can restart the system morally in my belief and then people of course trust it so you can restart the system morally in my belief the liquid the precious x. more and more of that inflationary pressure right because the bad the liquid the precious x. more and more of that inflationary pressure right because the bad guys. thanks but thanked for having thing and. all. ball in current. company. banks on their own b.

just banks banks saying they're just backing up a lot kept alive through new machinations as a nation the fed is adolescent and then just and type in that tiny to be a penny and. these people need to be punished you know. for me the idea has always been nominated to do no good. i mean the idea has always been the number and idealists as you know max believe me listen if you know my experts believe me writing just the rights to see succeed is also so grossly to write failed to fit because right now these guys write bad loans or do the wrong thing they should be punished i mean the markets should be able to work both were bad loans or do the wrong thing we should be punished i mean the markets should be able to work both ways that's why obama should have bailed out the debtors not the creditors right. that's why obama should have bailed out the debtors not the creditors right son who i say also macleod of gold money dot com recently suggested that china could soon announce it has 10000 myself from

a cloud of gold money dot com recently suggested that china could soon announce it has 10000 perhaps 20000 tons of gold is this force crazy things 1000 part of a skull the whole world what are your thoughts is this crazy as a possible what were your thoughts well you know not super close but you know we have our program talks down and then i don't think it's crazy well you know not super close but you know we have our program talks down and then i don't think it's crazy i don't want to go with 20 but 10 i don't think is the question but their answer is no one really don't go with 20 but 10 i don't think is the question but their answer is no one really know those ok but at the but promised this a priority list that has that been saved the secret leaking accumulating in here huge stockpile of gold as kind of the nuclear option against the dollar in the us if if this has to challenge the net go pickler option against the dollar in the u.s. if if this trade talks of china go badly china can whip out this nuclear option to say you know what we actually got $1015.00 badly china can whip out this nuclear

option to say you know what we actually got 101-5000 tons of gold and dollars now finished and we're gone to russia and somebody else maybe are going to go to a gold backer and see you know forget it you're toast 1000 tons of gold and dollars now finished and we're gone to russia and somebody else maybe are going to go to a gold backer and see you know forget it you're. doust one fine point very well bill about the amount of gold china is $15.00 point very well below about the amount of gold that china is asking the wrong question when they report the amount of gold which has happened asking the wrong question when they report the amount of gold what has happened is it's asked specifically how much gold is held in that bank in china and he gives it's asked specifically how much gold is held in that bank in china and they could give you the answer instead of asking the correct question which is how much gold everywhere in view the answer instead of asking the

correct question which is how much gold everywhere in china is held under the national name they don't ask that question so the child is held under the national name they don't ask that question so the chinese are actually answering a very explicit question very explicit way so no one really needs or actually answer in a very explicit question very explicit way so no one really knows the the amounts because they don't rex to report everything the reported what's asked for really knows that the amounts because they don't rex to report everything the reported what's asked for the biggest gold miner in the world probably the chinese and do we ever see the biggest gold miner in the world probably the chinese and do we ever see a gold and get all the chinese stamp on it or well the i mean you see these to ensure that my gold and get what the chinese stamp on and there are well the i mean you see these to ensure that might allow the export and only if so they're right plus

they're bought a lot of export and only if so they're right plus they're buying everywhere exactly and they they that buy official resigning everywhere exactly and they they that by official reserve we're number their number 2 or 3 thing and they can enter for number their number 2 or 3 thing and. they could easily be number one on a stealth stealth basis to be number one on a stealth stealth basis so china's changed course from a more secretive they're now more public about the gold holdings but even so china's changed course from a more secretive they're now more public about the gold holdings but even so they seem to be opening their camano to mix asian countries a bit they seem to be opening their camano to mix asian countries a bit to maybe telegraph that this is coming if they continue to pressure to maybe

telegraph that this is coming if they continue to pressure us you know we're going to start to leak information into the marketplace that you know we actually have a little bit more us you know we're going to start to leak information into the marketplace that you know we actually have a little bit more than you thought no actually it's quite a bit more like they're playing this cat and mouse game on trade this or than you thought no actually it's quite a bit more like they're playing this cat and mouse game on trade that does trump. does the understand that like what he even does trump. would dizzy understand that like would he even does he have the intellectual chops to understand it like if somebody came to him and said you know what china could have the intellectual chops to understand it like if if somebody came to him and said you know what china could you know now they've got 152-0000 ounces i'm sorry tons of gold you know now they've got 152-0000 ounces i'm sorry tons of gold what do you know what that means i would have to do would have to explain that to him or he probably would be or at

least would he know what that means i would have to it would have to explain that i would probably would be or listen to tbilisi would go my view but nonetheless i think he would need the decent to do what he would go my view but nonetheless i think he would need the details to make a you know correction decision could be the could be the harm to his to make you know correction decisions could be the could be the pearl harbor of the 21st century it's possible. there could be a while for about 21st century it's possible that there could be a while. so last week president g. over there in china said that he and we so last week president g. over there in china said that he and we china should implement block change technology across the economy again is this part of the distance china should implement block change technology across the economy again is this part of the disintegration of the u.s. dollars or weaponize global financial grid so president you sheet aggression of the

u.s. dollars a weapon as global financial grid so president you she of china you know they've been flip flopping back and forth their command say you know actually with of china you know they've been flip flopping back and forth their command say you know actually we like block chain block chain is a threat to korea brad sherman in california to block chain block chain is a threat to korea brad sherman in california the threat to the dollar not china saying we like blocking your thoughts i think part of the dollar. not china saying we like. yes i think part of the whole crypto thing is in the because probably the prime example has to do with the whole crypto thing is in the because probably the prime example has to do with the cast of society i really think that's the big move for the bankers i mean a lot of p.s. a society i really think that's the big move for the bankers i mean lot of people get really mixed up in politics and that's ok with me i let people be themselves

but people get really mixed up in politics and that's ok with me i let people be themselves but i love to show the slide that i put in most of my talks these days now listen have to do with know the sort of life that is right put in most of my talks these days and that has to do with the movie thrive in that movie as you appear there in the movie it showed that your pretender of the bid and the pyramid as a political class last that there were i think every other think big city leaders of . got the power to be all that is power all that but above of that it is your. you're a huge huge could go on big big corporations and take you back to the movie network where i forget the character's name but he says there's no chechens and takes you back to the movie network where i forget the character's name but he says there's no chime there's no us there's no mexico there's only a t. and t. 3 m. and this is the truth and there's no us there's no mexico there's only a t. and t.

3 m. and this is the truth and then above that is you commercial banks and above that your investment you know they're all but the universe with a bit above that is you commercial banks and above that your investment you know they're all but the. price they bear. they're going to pick up in a 2nd segment if you can stay oh yeah i'm going to leave at the top of. spec if you can stay i'm going to leave till 4 don't spend on your share we what we were we talked about mechanically what they were to betting on the right day but we're not sure spending all right that's if that's going to deficient in the dallas area for the car without misremember for start with as many things are said and surveyor wants nothing in iraq we want to thank our guest david morgan on the morgan report catch us on twitter at kaiser report and i sign as david morgan on the morgan report catch us on twitter at keiser report and i stand by.

i'm going to. i'm going to fulfill the repeated promises apologise to the people and promise if you will feel the repeated promises apologise to the people i promise to be you know we've all bots you know. there's no weeds or buts in this. place.

we really owe. you a great deal we really owe some. pretty good bertha now you want to 1st crack that. free beer bertha now you want to 1st crack that. no. no.

ball the. ball be cut cut cut. cut cut. cut cut cut. cut cut link i link i link up my yard. is your media link i can link up my. israel media a reflection of reality. a reflection of reality. in a world trance. in

a world transformed. what will make you feel safe. formed. what will make you feel safe. isolation community. isolation community. are you going the right way or are you being led. by you going the right way or are you being led to. direct. what is true what his faith. direct. what is truth what is faith. in a world corrupted you need to descend. in a world corrupted you need to descend. to join us in the depths. to join us in the depths.

or a maid in the shallows. or a mate in the shallows. russia's

foreign minister says the us invasion of europe. russia's foreign minister says the us invasion of iraq led to the rise. in the group's leader killed by the americans last week was washed led to the rise and the group's leader killed by the americans last week was washington's own creation. we know the creation of the uniting to his own creation. we know the creation of the united states islamic states

most of the illegal invasion of iraq in the collapse of states islamic states most of the illegal invasion of iraq and the collapse of the iraqi state when extremists who were held by the americans were set free. from the iraqi state when extremists who were held by the. set free. the concern over alleged interference from russia may have stopped it noticing the concern over alleged interference from russia may have stopped it noticing homegrown threats we report on an undercover investigation that lifts the lid on a homegrown threat we report on an undercover investigation that lifts the lid on a polish internet troll for. internet troll farm. i know and to the unrest chile can. i know and to the unrest

chile can.