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 and 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 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 you can 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 they 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 you 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 in that was the end of that we. 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 eunuch arms 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 asses buy 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 2010 through 201-8181 1000000000 dollars in cash was burned plus is the cash burned by the privately held companies so the total cash burn is likely in the neighborhood of $700000000000.00 right during the 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 us. danceable 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 and 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 whereas all fiske own they have to watch kaiser report and learn that literally of the guys you're giving it to are just burning it because they just that 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 the 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 i'm free to say 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 dollars 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 millennial and call them socialists and what are these kids i don't know anything else like they see that in 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 in positive cash flows all these investors cared about is the likelihood that the cash burning company would be able to raise new money from new investors such as by issuing new bonds or new shares so that it could pay off and remunerative the existing 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 chumps 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 that 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. the fracking industry providing natural gas an oversupply of it which is driving down 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 trump and west virginia in fact went for trump 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 this year 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 kept 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. destruction 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 organized labor now people of those 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 subtle 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 fly we all that's 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 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 the 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 star you could be like a sack of 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. to get a good. deadens the bad news in yemen the united states deems to be a threat the good those who work in syria the cia and the us military were engaged in covert actions really throughout the world. where they were assassinating populist leaders they were backing up the right way military funding and arming death squads there's no phones anymore because there's always a small income for a really good that's good for profit.

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 of time time to sit down and talk. israel media a reflection of reality. in a world transformed. what will make you feel safe from. thyssen nation full community. are you going the right way or are you being led so. direct. what is truth what is faith.

in the world corrupted you need to descend. to join us in the depths. aura maybe in the shallowness. 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 to commence alrighty 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 in 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 as i guess the biggest gas company in russia what do you think i agree that you know the brics of pretty much made a stance that they want to. remove the social and gold 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 means a lot i mean there's you who want to leave 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 clear the bar in 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 seen 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 see that the use 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 especially 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 if 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 to sell around that big state oil company they are not able to sell and this 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 there 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 the 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 rim coup comment there is you don't close the desert met simmons jones bridge over brings to the forum or perhaps you don't really have the reserves that the east 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 symonds 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 peak oil 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 extracting is prohibitive that where are we on that scale of things was a new windows but if you read this i was sure you probably read the book for the moon the mount 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 thank you very eloquent what you said about for record i'm not a fin afraid i'm not a fish i'm a friend of true capitalism which you can flood rarely but if you are producing the

loss with every barrel of oil or gas you good the fracking system the why do you continue. i don't really know the answer was that my cheap money yeah right ok that cheap money is being enabled by repeated action of all the laws of supply and demand side by side capitalism side economics it's clumped ocracy driven by a poll 'd 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 if it doesn't work i. could break their 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 don't 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 that period maps and the u.s.

is rapidly falling into a soviet is asian so let's talk about the 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 a member of the crash j.p. morgan by silver campaign that's how old we are 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 has been recent history last couple of years that was what has some of the year low so if you want to buy low sort of want to buy the miners in this space has it really was a ratio gold so ratio got to like 19 or something else now it's contracting somewhat. a silver is undervalued on any basis as a result of gold is it your you dyed your hair silver just to be more like

a silver guru that's natural. so he thought of the conversation. how do i go how do i dig my way out of that the saw the still go also ratios 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 its 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 again to go up i don't like that for a bull case is 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 this fracking thing is going to last a whole long i'm not talking about my lifetime but maybe you know to maybe only 5 years it's hard to forecast the point is you've got to factor that in as well but you're correct about something that could have a severe and 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 and put it in the dust with a grid and it takes quite a bit just for those to mysen our 1st conversation you gifted me this maybe wasn't gifted but it is now been commandeered this point so explain the story this point again so 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 a mortgage head dollar mortgage had down to the dollars away to $371.00 greens of

the funds sober it was really point $77.00 troy out so you know roughly 3. has been else hugo also had a surprise in mexico he's been trying for years to get mexico to go to a silver standard and he has an enormous really brilliant plan to do so kind of creative to subtly to currency system and to rollover into becoming a silverback currency over time through and as you point out it's quarter in a 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 we 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 the silver standard in mexico a good idea as you go sell on his price and we're going to see him in a few months is this correct david morgan of the morgan report before soft good are

fairly close and yes it would have a huge benefit i mean anything more 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 lining in the tarp plan it is not rewarded for that reliance room capital exactly 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 west we flew to athens during that and the greek financial crisis and we made a presentation to the government about solver because they have similar and they foolishly took on the troika and they went that way and the economy went down the tubes were go back to the pyramid i mean the bankers are really at the top of the pyramid and they're not going to give up the monopoly to get something for nothing meddling with the forces of the universe again. 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 mortgage market report dot com thanks for making the house report about source of pleasure thank you that's going to do it for this edition of the kaiser report with me max kaiser stacy ever like to thank our guest david margan of the morgan report if you like to catch us on twitter at sky's report. dimension. 635 if you have a career and career involves using your eyes on your computer and things like that in an office. perhaps you sort of killings in excess are kids. going to have to stop doing all this in this kind of you look at the minutes before. my world became smaller and smaller and smaller until i ended up living it in

a box. very strong magnetic field on my head. like a real hard pressure on my skin and that wireless access point. just continues on saying with our students in the schools. we are just continually bathing our citizens in this microwave radiation it is certainly electro small and it's getting worse. so what we've got to do is identify the threats that we have it's crazy. 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.

thousands of american men and women choose to serve in. country's military and the decision. every song came to a complete. the day that i was right. you told a shot to kill me and i see how it destroyed my life any screamed at me how many graham my arm and he write me with his birth. 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 thing tat happen but i've never seen trauma like i've seen from women who are veterans who suffered military sexual trauma reporting rape is more likely to get the victim punished than the offender and almost 10 year career or chose 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 tower and violence male sexual predators for the large part of target whoever is there to prey upon whether that's a man or woman. this hour's headlines stories a u.s. military called the boy killed was under fire in syria from turkish militants we look at other grouping including functions once fiercely promoted. turned into. mcdonald's far as one of its most successful c.e.o.'s ever after he admits to having a consensual relationship with a colleague our guest debate the subject of so many and inappropriate occurs in the world. you know being a c.e.o. i don't know how much time this guy had on his hands to meet people but do you know the world we live in this is an era right now of matt lauer and me tonight i do know the.