the u.k. government delays the release of an intelligence report on the alleged threat posed by russia to britain's democratic institutions the document will not be published for over a month as parliament will shut down until december selection. a u.s. court rules a homeowner whose house was destroyed during a police search for 8 people not feel any compensation from the authorities. they proceeded to destroy the whole house until finally they ended up you know because there was really nothing left of the house. and of mixed messages from facebook and some of its apps are found to be. trafficking jihadi groups. other people for using suggestive. dot com has more on the latest headlines

report straight ahead stay with us. this is the kaiser a party of all or that expression if you find yourself in a hole stop digging sounds logical right now for one particular industry. well thing indeed in fact there are 2 industries and we've talked about them often that's the tech industry we have the tech bubble $2.00 with we were left peloton all of those sort of companies and we have the fracking one and that's important for this 1st headline for wall street dot com because he looks at all these bubbles going on what he says is here's what i'm worried about with the everything bubble how cash burn machines power the real economy and what happens to the economy when

investors refuse to have more of their cash burned so he calls it the cash burn machines these are investors willing to just keep throwing money into ever losing operations we work. of course they've been losing money for 10 years or less in the case of we work but they keep on throwing money and they're willing because there's always somebody to flip to they all share $2.00 things in common one they're fabulously efficient finely tuned and endlessly perfected cash burn machines and to investors and these companies count on new cash from new investors to bail out and removing the rate the existing investors otherwise known as a ponzi scheme or a pyramid scheme this is essentially was driving the economy is burning cash yeah it's a beautiful thing because it doesn't cost anything to get all the cash you want from the central bank for free they give it they give you trillions and trillions of

dollars if you're a friend of theirs you get to burn a trillion and you keep a 1000000000 that's the deal so let's say hillary clinton's foreign policy for example the government gives her a few trillion dollars she burns countries down but she gets a $1000000000.00 in fees that's true of hedge funds as true of private equity funds they get trillions of dollars from the central bank they burn everything down their arsonists but they get to keep a nice a souvenir like a $1000000000.00 like mitt romney is a good example of somebody who made a business out of this and. eventually though your run out of the free money runs out in the case of venezuela for example this is a true fact they actually ran out of ink to print the money that they were burning . that was the end of that we've seen over the past 3040 years interest rates have been declining and declining and declining and to climbing so they're always able to roll it over and sell it to another chump because there's always another chunk

at the end of a declining interest rate curve so however what we've seen since the financial crisis since 2008 as not only are interest rates the client ing but the fed keeps giving their friends the free money and hoping that it's going to trickle down well never trickles down because they've kept everything private they kept all of those unicorns as tech uniforms which are on paper they were worth billions and billions and billions of dollars the ordinary chump they thought like hey we're getting free money from the fed so why should we let the ordinary chump get in on this because it's free money for us and we can just keep throwing money at it and raising our own valuation on paper we get to then leverage ourselves up and buy real assets by properties in new york city by land by gold by bitcoin. but now as we hit 0 and even negative in some places it's all falling apart because they aren't able to find these willing investors or who are so easily able to throw

money away so for example many of these shale oil companies are privately owned including by private equity firms and it's hard to get cash flow data out on them but for example just to get a feel for the magnitude of how much money they're burning by sorting through $29.00 publicly traded shell oil companies the institute for energy economics and financial analysis found that between 201-320-1818 extension 1 1000000000 dollars in cash was burned plus is the cash burned by the privately held companies so the total. casper is likely in the neighborhood of 700000000000 bucks right i know i'm our republic that they didn't go through the artifice of creating a public company or a private company they just burned the actual cash in the stove to keep warm here they've created. a bull business model of fracking which is another euphemism for burning cash right because it takes more energy in they get out it takes more

cash in than they get out it is a literally a bottomless pit of cash that is by definition impossible to make a profit from and in the private market like a we work or other tech companies that are in the private market there's a mass hallucination going on where they've think that well we need to become the biggest energy exporter and producer in the world in the saudis are no good in america's number one energy in the company in the world so we're going to take 567 trillion dollars are going to light it on fire up there in north dakota and claim that we're the number one energy provider in the world the fed who is the one that is giving them this free money. keeps on looking around at the real economy why aren't we just rising why is the economy so weak we just gave our friends 10 trillion 14 trillion dollars since the financial crisis where is all this going they have to watch cars report and learn that literally of the guys are giving it

to are just burning it because they just you're giving them too much they're just trashing it they don't respect it it's free money is not respected the beatings will continue until morale improves or in this case the money printing will continue until inflation improves now you never get inflation from money printing in this way you only get deflation we've been saying that for 10 years even though it's against all economic orthodoxy that's been taught in space the schools for decades they always say print money you get inflation we said actually in this environment you print money you get deflation and that's exactly what's now happening because in this environment the money printing is crowded out all of the viable businesses and kept the unbuyable or invalid bowl or crash companies afloat and becoming zombie companies in the zombie banks and but of course they're going to keep printing and told there's nothing left and we lose supremacy to china. the

money is still printed obviously it's this being printed in the repo markets it's being printed project these people remember used to be $1.00 g.d.p. when you and i were young and entering the workforce $1.00 of debt would create $1.00 g.d.p. or even $2.00 their g.d.p. now it's about $7.00 of debt creates $1.00 g.d.p. that experts allowed on c n b c wag their finger and point their finger at the millennium goals and call them socialists and what are these kids i don't know anything else like they see that her head like wait if it's taking $7.00 in debt now to create $1.00 g.d.p. soon it's going to be 14 and then it's going to be $32.00. and who's going to pay that debt me right like the 19 year old the 20 year old the 25 year old is going to be owing that but the only reason these companies have had such growth is because investors didn't care about the business model profits and positive cash flows all these investors cared about is the likelihood that the cash burning company will be

able to raise new money from new investors such as by sting investors and existing stockholders counted on this new money to keep the company afloat and share prices sky high and i would extend this to the actual generational situation happening here in america is all these boomers and the generation x. after them they kept on spending and accumulating this debt because they thought well we don't need to have $2.00 or g.d.p. growth for every dollar debt because eventually we could just keep on rolling it over to another generation of chums and that will pay us off that will allow this to continue but where add an end point with that in fact if you were to apply the same definition of g.d.p. today as was used 30 years ago or 40 years ago it wouldn't be 7 or $8.00 of debt. it would be closer to $80.00 that needs to be associated with that so it's the same as saying infinite right you don't get any growth. and you don't get any tax

revenue at all because the people who are printing the money don't rely on taxes to get wealthy they're not part of the real economy that's a that's the same thing as saying the rulers of saudi arabia rely on the wages of the people living in saudi arabia to get rich they they don't they just print more or pump more oil so in the america the princes that run our economy just print more money they don't need the workers they don't need their taxes that's why they don't have wage growth why there's been in this aeration because they're unneeded but we're going to turn to a story that kind of ties these all together because the coal industry of course is going bankrupt because of the fracking industry providing natural gas an oversupply of it which is driving. on the cost of setting up a natural gas energy power facility rather than a coal facility but this story of course emanates from west virginia kentucky and virginia all states that voted for troubled and west virginia in fact went for trunk by 42 points the biggest in the history of west virginia over hillary so

m.s.m. we see has not covered this though this is a very much of a worker story that workers united in and got their way against a corporation that was using the the loopholes in u.s. law to basically get you know. short changed on their what they were do after months of protests and turmoil black jewel agrees to pay its kentucky coal miners black you'll see the coal company that had declared bankruptcy earlier their severe and left hundreds of kentucky miners on paid for weeks of work sparking a 2 month long protest and harlan county has agreed to pay roughly $5100000.00 to cover back wages of its kentucky virginia and west virginia miners according to the settlement approved by the u.s. just to court for eastern district of kentucky this week they're going to start sending the checks out over the next week but they the workers the coal miners had occupied like the rail tracks and prevented any of their coal from being sent out it was $23000000.00 worth of coal because they felt it was due for them course

that's kind of like what you see in france but also how it connects to fracking is remember with tracker is going out of business what they're doing is they're supposed to pay a bond they're supposed to write a bond to the state like north dakota but the cleanup costs and it cost something like $2.00 to $2.00 and a half $1000000.00 to clean up well they're abandoning them and apparently there's not enough bond that they have left to even cover the cost of it so the taxpayer is paying it here at the same thing black jewels bankruptcy also raises questions about the kentucky department of labor's enforcement of the performance bond that is required from new construction of mining companies to cover wages the bond requires mining and construction companies that have been. doing business in the state for less than 5 years to post a bond to cover wages if the companies go under and are unable to pay apparently there was no bond in the situation they didn't have any money to pay these workers when they went bust corporations are always going to abuse workers that's why there

needs to be a law or guys labor now people who are free market boosters will say no no you just let the market decide everything. and i'm all for that but you'd have to include of the central bank as long as the central bank is being manipulated by bankers and there's not a free market in money the price of money is fixed to encourage this type of behavior then there needs to be organized labor that's the that's the flywheel bus the counterbalance to the central bank is organized labor the army is an organized labor is the last group to understand this they they should get their act together and tie their wages to the percentage of money supply printing but also in this case martin luther king jr whatever been able to warn the population of today what this is and tailing i.e. we are divided conveniently for i believe the elites into red team and blue team

you're either in the partisan talking points of the republicans or the democrats so of course the entire democratic media is way bigger than you know there's just fox news in this c.n.n. and most n.b.c. and all the others they they nobody discuss this they're not talking about this and they're unified in the same way they're being they're being exploited and robbed essentially by the same. the same guys rigging their precious metals markets are the same people involved in rigging this situation where workers these guys put in the hours they put in 2 weeks of work and they were never paid for it and then they had to do something about it because nobody else was willing to help them out during could be like a sack a family and look at this catastrophe and say hey this is a great place to sell synthetic opium. right on do all right we're taking a break when we come back much more coming your way.

and we're going to pull through. it focuses possible to the people. you know weeds or butts to the. middle of you. pretty. much a. pretty good group. now you want to 1st. know. all the. big.

football existence to do something to. put themselves on the line. to get accepted or rejected. so when you want to be president. some wanted us. to go right for us it's like the full story in the morning can't be good. i'm interested always in the lines of my. first signal. ok welcome back to the kaiser report imax keyser time now to return and continue with our conversation david margan of the morgan report welcome back their comments already well we're so much the calmer let's try to just dive right into it

following up on our conversation mr morgan about the dollar is ation of the world seems like people are getting rid of the dollar we see that the numbers in terms of dollars being used in global trade it's all been falling for the last 20 years. or all stuff to just stop pricing their contracts and dollars several years ago jim rickards said on this show that when obama weaponized the dollar be a swift it would cause nations to seek alternatives is this part of that move of course is i guess the biggest gas company in russia what do you think i agree that you know the brics have pretty much made a stance that they want to. remove the social dollar as much as possible should all kinds of big trade deals done between china and russia in their own currencies the dollar all together right so dollars ation you see that is in place all happening i do on that score a few months ago congressman brad sherman pointed out that quote an awful lot of

the international power of america comes from the fact that the dollar is the standard you know enough international finance and transactions clearing through the new york fed is critical for major oil transactions do you agree with that and what does it mean that major economies are moving away from clearing through the fed it means a lot i mean there is you who want to so they have a cursory study of the current economic system those that we have the petro dollar everything the oil transactions at one time you'd be cleared by u.s. dollars so put a huge pressure to keep the dollar stable in the number one currency in the world this is of course been changed over the recent times as you've been chosen i just mentioned you're seeing settlement outside of the u.s. dollar so we'll take the dollar down of the. in my view along with so were other things i mean as we said earlier in the segment we could have. inflation we could have a bit liquid depression and of course as an austrian i'm not supposed to so you could have both but you could have a situation where wages are frozen and the prices run away in the cities really harper inflation was just too that the you sensual energy and food doubled in price

and their wages stayed the same if that were to occur what would that do the average american you know point so you could freeze wages and let prices go up and i've said in a previous show that if you're going to allow the fed to manipulate prices you should allow organized labor because you don't want to organize labor ok fine but they were the manipulators of the fed right so there's a flywheel there's a counterbalance there now you mention the petro dollar of course that goes back to saudi arabia saudi arabia seems like they're a completely in flux 1st of all they are strong around that big state oil company they are not able to sell it and it seems as though they're desperate to sell it because they got a huge debt problem and that's not happening there got a lot of political shenanigans going on and they're being revealed all kinds of atrocities are being performed by an oversight and overseen by the leadership there and i know that you know politics is something not necessarily what you look at

when you look at these markets but. aren't we at kind of in historically speaking when you talk about date dollars ation are we also maybe at a point of d. colobus nation and instead of going with this globalized world economy that we've been in for since world war 2 where it's back to more of a mercantile list every country for south mentality absolutely i mean on the a room coup comment there is you don't close the desert but i met simmons was joan rivers brings to the forum or perhaps we don't really have the reserves that the u.s. would claim and they are in big trouble for social reasons. back to the other comment absolutely i mean i think trump is just kind of the tip of the spear or maybe near the tip of the spear is far as back to nationalization no more globalization every country and you see it throughout the world the political class that a lot of these countries are moving more toward you know me 1st or let's get our house in order 1st before we move into this globalization situation if at all and

it's very important to see the big shift i think that's probably the biggest shift that we're seeing on the on the. in the world right so matt simmons' twilight the desert and talking about peak oil and that was a theme 10 years ago we made a film about it shortly there after the whole fracking boom took off and you don't hear about pick on oil anymore however 2 things number one fracking is net negative it's cash flow negative it's also energy negative takes more energy goes in that comes out takes more cash that goes in the comes out number one so that's a bust that's not true that's a canard so you get back to the peak oil thing and back to matt simmons book so the saudi oil reserves the field being the world's largest sis the idea that that actually is close to depletion or the cost of getting on extracting is prohibitive that where are we on that scale of things was

a new windows but if you read. the book through the moon the amount of water that they have to pump in the good this would film and then the water out to get back to oil as the minutes so i think we're closer most people think that it couldn't agree more through a very eloquent what was that about for record i'm not a fan of for going to fill i'm a friend of true capitalism which you can fly and rarely but if you are producing the last and every barrel of oil or the good of the fracking system that why do you continue. to i don't really know the answer was that my cheap money yeah right ok that cheap money is being enabled by repeated national all the laws of supply and demand side capitalism side economics it's clumped ocracy driven by a poll a p r o of interest rate setters that make the soviet union blush the old guys are rolling in their graves because they're like it doesn't work i. could break your loose we're going to do that well you're trying to recreate the soviet union in america and wondering why it's not working meanwhile russians are embracing america

that i know i have to interrupt you because we're the best exact heard was you know america is becoming russia and russia has become an american i thought houses. and i said that years ago it's 2 ships passing in the night. goodness like eisenhower essentially and that's the period maps and the u.s. is rapidly falling into a soviet ization so let's talk about gold miners they've had a good year but a bad decade on the cheap here your thoughts on the mining sector ok now back to gold and gold mining yes 1st of all let's wake up because gold's been in a deep slumber for years and years through you know we were so all we were we were member of the crash j.p. morgan by silver campaign that's how old we are sort of ok so gold miners what are your thoughts there david morgan or think that they are still cheap or mean barron's does a gold index and i forget exactly when or was before the recent history last couple

of years that was were like of some of the year low so if you want to buy low sort of want to buy the miners in this space has a really was a ratio gold so ratio got to like 19 or something else now it's contracting somewhat. the silver is undervalued on any basis it is a real gold is it your you dyed your hair some are just a few more like a silver guru that's natural oh often. there are so he thought of the conversation . like how do i dig my way out of that now so the still goal so ratio is contracting. you know but as we've been pointing out i think this is the case against every other currency in the world gold making new all time highs right against the euro against the end against the repaying the ruble forget about its like. argentina venezuela magnitudes mag multiple times so what's it going to take to get it in dollar terms do we care really this over miners if costs

come down through deflation and the currencies collapse that would be like a turbo charged case for the miners because their overhead their costs are going to drop. and that their margins are going to skyrocket because the prices of call it's over a going to go up i like that for a bull case it's a lot of good but we also come back to oil i mean it's energy to get the stuff on the ground and if there is a contraction in the oil supply which i think could happen and this fracking thing is going to last a whole long i'm not talking about my lifetime but maybe you know 2 in the maybe you only 5 years it's hard to forecast the point is you've got to factor that in as well but you're correct max i mean it could have a severe i think it's going to go the other way because across more and more you know it's energy and energy out as kind of how i think of things these days and how much energy does it take to get that out of silver not only out of the ground but to refine it and put it in the best of grid and it takes quite a bit not just for those who miss and our 1st conversation you gifted me this maybe

wasn't gifted but it is now been commandeered this point so explain the story of this going again some people have a knowledge of the you know money used to mean money used to be in precious metals so what is this again what's the mortgage head dollar mortgage had down to the dollars away to $371.00 greens of the funds sober it was really point $77.00 over troy ounce so you know roughly 3. where is one else to go so at this price in mexico he's been trying for years to get mexico to go to a silver standard because he has an enormous really brilliant plan to do so how to create a subtly to currency system and to rollover into becoming a silverback currency over time through and as you point out it's quarter in the way and then that is a way to establish a accounting system in that economy that would benefit benefit wildly that mexico's a country seemingly i believe that would benefit from maybe

a re architecting the financial system in a way that they can start to cure some of these problems that they're having is going to silver standard mexico a good idea as to the sell and its price and we're going to see him in a few months is this correct david morgan of the morgan report before good are fairly close and yes it would have a huge benefit i mean if anything was or oil silver timber any main commodity that's in abundance is your wealth i mean by definition because these are real things needed in the real world and yet someone like rescue of the sometimes number one or 2 silver mines in the tarp plan it is not rewarded for that. little bump locked up exactly they they've got the number one or 2 silver lining in the world and they're not benefiting from this in mexico exact this is outrageous david morgan in the morgan report. you know last time we are westy ago we flew to athens during that and the greek financial crisis and we made

a presentation to the government about solver right as they have similar and they foolishly took on the troika and they went that way and the economy went down the tubes go back to the pyramid i mean the bankers are really at the top of the pyramid they're not going to give up the monopoly to get something for nothing meddling lot of forces of the universe again trying. working people find their work more good for dot com really is it then is. hi farai i think i'm just morgan report the wardroom are going to port back up thanks radio because report back source of pleasure if you that's going to do it for this edition of the kaiser report with me max kaiser stacy over like that i guess david margan of the morgan report if you like to catch us on twitter it's kaiser report.

we were told there was no such thing as the deep state now we're told to adore it also arms control is done we should all be worried and concerned and why samantha power hypocrite. thousands of american men and women choose to serve in the country's military and the decision. every song came to a complete. the day that i was right. you know to show what they'd kill me and i see how it destroyed my life many screamed at me and he made me come in the gram my arm and he write me this berthing area if you take into account that women don't report because of the extreme retaliation and it's probably somewhere near about half a 1000000 women have now been sexually assaulted in the us military rape is

a very very traumatizing have happened but i've never seen trauma like. women who are veterans who have suffered military sexual trauma reporting rape is more likely to get the victim punished to be a friend and almost 10 year career which shows very invested in and i gave a sex offender who was not even put to justice or put on the registry this is simply an issue of power and violence male sexual predators for the large part of chart. whoever is there to prey upon whether that's a man or woman. greetings and salutations over the weekend thousands gathered on the banks of one of them india's most sacred waterways that you move in a river to pay respect.