the headlines this hour vladimir putin tackles the global economy sanctions i'm relations with the u.s. as a top foreign in russia. many guns fails to form a new government and moves israel towards an unprecedented 3rd general election in a year and. how she sent a military police to kill us like animals we're not animals for them to kill us like now that. the death toll in bolivia's and c.q. protests rises to $31.00 as the country's self-proclaimed leader gives the security forces impunity when it comes to dealing with unrest. well those are the headlines for now i'll be back here next hour with another round up town stay with us for a boom bust next year on all to international.

i am i skies are this is the kaiser report on markets to make a new all time highs interesting the money that is being forced into the. markets like grain into the liver of a duck off farm it has to come from somewhere a lot less let's dig into this a little bit more stacey yes as we always say the fed is feeding the ducks on their for farm over and over again but of course we're in new york and one of the good things about being in new york as we always tell the audience we get to watch the cable news we get to watch our so-called competitors and there is no worry here you know i've i've actually rather have our competitors be better because it encourages us to be better but nevertheless also when we're in hotels we get to see the

financial times and you see all that the cable news except for kaiser report is covering and it's really important head of the financial times private equity firm k.k. our lines up 70000000000 dollar buyout of walgreens boots walgreens boots obviously are a consolidation 1 of a pharmaceutical company this little sad emotional there is probably a good. explanation of this whole story so they're taking it private biggest deal in history all your obamacare money well now belong to who is it stephen schwarzman no no he said blackstone take a are painted travis exactly right so this plays into the steam of neo feudalism everything being taken private so what is i mean that means for example walgreen's boats already merger as you discussed there's fewer and fewer competing companies competing with each other they're all being consolidated to an oligarch played them

in a monopoly and then they are taken private so. $1000000000.00 deal largest private equity deal over those deals are going to need to become bigger and bigger will say $150000000000.00 deals with every $300000000000.00 i'm sure warren buffett also berkshire hathaway in a $600000000000.00 deal with some saudi prince at some point but it's all being taken private and that's just another stepping stone along the way of that trend we've been talking about here for a few years and if they're spending $70000000000.00 and it's not their money they're borrowing that $70000000000.00 or $7070000000000.00 against the assets of walgreens boots i.e. the pension funds of all the employees the buildings in which walgreens lives they'll just sell 3 it all off pay themselves a huge dividend leave the $70000000000.00 of debt with the public shareholders when they've bring it back to the market and dump it on our pension for a leveraged buyout just to be clear you're you're pledging the assets of the company to borrow the $70000000000.00 in this case from the central bank that will

charge you nothing for it then you make the acquisition then you make a few spin offs like the pension accounts to pay back that debt and you keep the keep the rest i mean that's what ray dal you know is essentially talking about when he says billionaires like himself or henry kravis or steph stephen schwarzman they get to borrow for free at the fad and then destroy the livelihoods of the bottom 50 to 90 percent of the population sells $500000000.00 in stock i don't know how to pronounce his name kalanick he's the guy who was ousted he gets 500000000 dollars and by the way his new his replacements of course praise thing. m.b.'s you know mohammed bin solomon from saudi arabia essentially he was saying well we all make mistakes about him not chopping up a journalist right of course transforming the taxi business around the world and becoming a monopoly in the taxi business and one of the founders there for half a 1000000000 who was caught doing a lot of nasty things and his successor praising the decapitating m.b.'s. over the

in the study yeah yeah he said because we all make mistakes like in cars and i don't repeat bull he equated it with that here's for the bottom 99 percent this is our life health websites share personal medical data with advertisers so again you're being plundered picked apart is like private equity there plundering your soul your your pension your wealth your dignity this is a case for universal basic income because data is the new oil that supplies the lubricant for the new economy and to have my data stolen from me a all the time without compensating me for that data is set well it's beyond even that i don't i wouldn't sell mine for a $1000000.00 i had i you know and they would only want to give me you know $100.00 but the fact is there is a thing called dignity and one needs dignity before one can be a human so we're either docs on that while gras farm that you started off the top or you're the person sticking the you know the gunk down always have the option you

know i have the option and maintain my dignity or i have the house of the cell my dignity you know but at least give me the option just don't steal my dignity of course if somebody walked into some individual off the street walked into your doctor's office after you had just been in there and said hey can you give me max kaiser's data that you just talked about there like that it would be an arrest right that your doctor would be arrested that it's all that stuff there is a patient confidentiality on line and somehow it's all math and cool you call yourself an internet or software provider and suddenly there are no rules that apply do well multiple personality disorder can be profitable because you can self they can be in your multiple personalities that's a good idea of course europe has a different sort of sense of dignity it is where our farms are but for the human europe must rest control of data from silicon valley or angela merkel of course

they have the rest in control and this is an issue between trump and merkel. he says you know that they're unfairly targeting silicon valley companies and that we have to stop this it's all so that adds can be delivered the moment you have the idea of buying something with the credit card that you can afford so that you can have a way to relieve the pain of having an existential crisis of your dignity money without any compensation speaking of pain that segues brilliantly and to my next headline negative yield in bonds turned into punishment bonds remember all those negative yielding bonds we've been talking about well there's been a bloodbath there hasn't covered much in the news except for of course the financial press but after peak negative yield absurdity in august bond prices fell the bond a bloodbath and the mountain of bonds with negative deals has plunged by 5 trillion dollars or by 30 percent despite negative rates so in the euro zone where the e.c.b. in september cut us deposit rate deeper into the negative long term yells have

risen across the board so member all those people buying 30 year bonds. switzerland was the 1st to go negative in europe well they're less negative now so in europe in switzerland it was negative 1 point one percent now it's soared by 70 basis points to negative point 4 percent which explains how much her that would be to get back to my comment at the top of the show the all time highs of the stock market that cash has to come from somewhere so most of it comes from the money printing going on the central bank but the central bank can't print fast enough to keep dissipating new all time highs so the market makers who are driving those prices need to steal it from somewhere else one big place they steal from is the bond market and from the pension market they are forced to buy negative yielding bonds where they are guaranteed losses so that that extra cash that is being pilfered off the top can go into the market making to get those stocks at all time highs and of

course those bonds with a negative deal to begin with once they have any kind of down. as volatility comes into the mix and you have gobs and downs in the bonds are now down so you've got a loss on top of a guaranteed negative b. ill and the results are a complete and utter wipeout but those losses are needed those sacrifices by pension accounts that only snag the building bonds are needed so all owes new highs are the result of those pension councils bondholders dying on the field of negative rates according to wall street so where let's look deeper at this in particular this with swiss situation and what happened to those investors who we were mocking at the time saying this is going to be horrible for them but in switzerland the 1st country to actually sell new 10 year bonds with a negative yield in april of 2015 the 10 year yield had bottomed out at negative 1 point one percent on august 16th and has since soared 70 basis points to negative 0.4 percent those are true punishment bonds for folks who bought them in mid august

for those buyers the annual yields will continue to be negative 1 point one percent until they can get rid of those bonds but now the bonds are also losing value and if those august buyers want to sell the bonds they will also have a capital loss yeah exactly it's a lose lose equals a big loss and this was also insider trading racket because a negative building bond by definition will without doubt be a loser so you can again borrow tons of money from the 0 percent interest rate window at the federal reserve and short those bonds remember as those bonds go down like we saw on grace there were over a trillion dollars those were made by racketeers who were making bets on the collapse of greece while they were you know arsonist tickly destroying greece and here's another example of that another pain punishment sort of movement here ok boomer stop buying stocks fidelity warns fidelity investments in its 3rd quarter.

tyrant report has a new warning for its greedy baby boomer clients portfolio risk has never been higher as retirees are overly exposed to equities running a serious risk that the next market meltdown could wipe out their retirement accounts their report notes that more than 33 percent of baby boomer clients have exceeded fidelity's recommended allocation to equities so they're chasing the fed they're tracing trumps tweets about the markets higher than chasing their moment and they're acting like momentum traders on this right right but you know the delegates comments are based on what exactly a few metrics that they are saying historically don't line up well i'm saying is that historically this is an unprecedented moment where you've got the entire s. and p. $500.00 being taken private and it doesn't matter what price that is taken private that if the money you're using to borrow it to take it private is free the stock

market could go from 28260008 doesn't make any difference if it's just being all taken private with free money shockingly 10 percent of all boomer clients have given up on traditional retirement accounts and have allocated 100 percent of their savings into stocks and i saw actually speaking of boomers allocating 2 stocks bill gates himself they said that he gave away 35000000000 dollars last year but he made more than that on his stock portfolio because he's 60 percent allocated to stocks analysts of course were surprised retirement analysts for surprise he had so much allocated to stocks but 100 percent 10 percent of boomers have 100 percent of their wealth in stocks the fact is that a you know no load index tracking fund as it exists or reconstructing constituted as such going back 40 years performed every money manager and hedge fund except for maybe one or 2 and that's the bottom line best

effect. stocks on average go up 78 percent a year for 40 years the stock market goes up to that of every 3 days for the past 40 years that's the fact well again past performance doesn't necessarily equal future performance and for the past 40 years we've had an all female post gold standard system so one day and we had interest rates up to 20 percent now they're down and 0 percent so maybe it'll keep on working for the next 4 and my own hudson says they can go to negative 20 percent that's 70000 on the dow all right we're going to take a break when we come back much more of company a way to go way. join me everything on the alex simon sure and i'll be speaking to us of the world of politics school business i'm sure business.

tough and i mean on the full entire system i found a way to go through a suit because the ballot itself mukti it i. was in this way got to doubt it so hard not to think of the mother disappeared this moment the work of a coward and i know from the start then if. this is the only thing that we do is music because everybody fights in his way. through our you can talk the 50 out of this will persuade you that you have all the ability to put the payment on the. what i think is this is the funds that is a constant.

thought. welcome back to the kaiser report imax guys are time now to go to bottle of unchained capital some call him what the carl sagan on the pickaway wow that's pretty tall anyway welcome drew thank you max so this is some fascinating stuff you've been working on aside from your day job over there don thank apple you but really studying a lot of the big issues surrounding big coin big coin astronomy what is this wow it's you're right it's something that i do outside of my day job but i think it's something that compels me i think anybody's day job no matter how passionate they are about it koren or whatever they're doing day to day can get repetitive sometimes it's fun to zoom all the way out and for me that is thinking about because on the longest time scales like $100.00 plus 20300 years from now what has

it done to our economy here on earth but also in adjacent places like mars the rest of the solar system assuming or presuming that we even continue to expand in those directions all right i as i've said often you know it's a big big point changes yes indeed it has this way of really working the way people think about things and you come up with an interesting metric care just to skip to this bit because it pertains to this this center of past what is that and why does it matter what analyzing big point. that it's most like the most. silly idea but also really really deeply central if you're willing to take seriously the idea the big one could survive for hundreds of years and still exist when humanity is spreading out to the planets so let's take that as a given the idea is basically saying where it is because mining happen on average you know any distribution of mass or matter in the universe you could calculate the center of mass kind of where it would balance if you're put your finger right underneath and similarly you can kind of ask where most of all the hash rate miners

mining because transactions where is the geometric location in space and it's the center of all that weighted by how sure. today if you were to do that calculation and surprisingly you're going to find that it's somewhere near the center of the earth maybe it's because for china. over time as we spread further and further away from the center of ash here at the earth it becomes more and more disadvantageous to mind because again this is not really anybody's problem today we're all basically a light 2nd away from the center of hash but what if we have a civilization that's growing on mars will they be able to use big quinn turns out i think the answer is yes they'll be very much be able to be 1st class citizens and users and hard learners of decorum will be able to mine because the answer is no and it's fundamentally because they're far away from the center of hash there are some mathematical properties that are big in the big core and that interact rather poorly with the fact that the speed of light is finite it takes 45 minutes for a round trip signal to get between mars and earth sounds like a kind of a pain in the but more importantly it prevents mining entirely on the planet mars

is this a problem i don't know certainly again not today in the future it might be if you were a martian. putting martians aside for a 2nd there's a lot of billionaires in america now that are looking off terra firma planet earth as a way to what they perceive to be a big problems here on earth and you've got billionaires building rockets building spaceships you've got a lot of what is tesla into orbit with a space man jeff bezos at amazon he's worth over 100000000000 he's talking about space travel i think we're going to be colonizing the moon pretty soon mars is you know a skip hop a jump from there so you can't take gold because it's too heavy. and figure out money has a horrible track record in reputation so big going could very well be the interstellar money and it's this is not necessarily outside the realm of the near future not science fiction but this science probabilities and i've always

speculated that people watch the show know that i look at the sas rate of decline and it's been over $100.00 quintillion have. as per 2nd our calculations per 2nd is the biggest a shit network computer network every injury in the history of the world by huge factor and it's aims almost as if what's driving it is something more than just coming up with an confiscate it will money it's come it's there's something else behind it i have i have spoken that actually the protocol because of protocol is almost as if it's hacking humans that humans are on a course toward self-destruction and if this protocol can get into our brains sufficiently we could change course and save ourselves or wait we're not going to make it and you can see 800150000 price point but humans will become extinct. you know that's a possibility as well so you're a physicist by training so how close are we to make

a voyage to mars ok so we've definitely been to mars and we as humans we're not quite made it there i mean i almost wonder if these billionaire driven attempts to colonize it might get us there before anything that nasa puts together that's just an interesting market versus government exercise there this point it's happening man like one of my favorite conspiracy theories is that every product that one must build is actually secretly something he wants to use on mars right so the battery technology is for the things out there at the boring companies so that he can build tunnels in the crater rim so you can have spin gravity these are silly ideas and want to conspiratorial but in the end as little as 20305100 years things like nuclear fusion things like actually children being born on other planets it can happen it could have already happened we just decided that there wasn't money to be made in space for a bit and we gave up i think we're starting to see that there's a lot more that's interesting out there wants more maybe we're just terrified of

what is happening on planet earth and this is a 2nd chance that some of the wealthiest of us will seek to grasp i don't know but going back to your comment about. changing us. and i think one of the unique aspects about the coins that's one of the truly scarce things that you can envision material goods gold dimes and these are things that exist all over the solar system and the universe more generally a big point it's a game we play and we've chosen to make it the most scarce possible thing that can exist that's extremely interesting because it's also tied to something else to scarcity we're less in touch with and that's energy and we live in a bountiful era of tremendously cheap energy are energy that's cheaper per unit than has ever existed in history before and that messes with us as a society to it leads to consumerism and and short term thinking in a lot of ways and an addiction to that cheap energy that's really hard to break off as we consider things like the oil industry and climate change and so on so i so they figured it would bring him into more of a philosophical question if so you do have on

a relative basis cheap energy the density of petroleum is very high as compared to other forms of energy from history you know for whale oil and going back you know before the coal and these type of things and so that cost for b.t.u. drops precipitously and but it has led to this overconsumption and then my product being this ecological disaster in the plastics in the ocean that's incredibly cheap cheap cheap this of oil essentially how cheap it really is and a lack of investment in new alternative and even more dense energy sources like nuclear fusion nuclear fusion isn't a pipe dream and it's always a joke that it's always 30 years away but if you look at how much funding nuclear scientists ask for and how much they've actually received and you look at how much private investment is going to be a power it's tiny compared to what it might have been if we hadn't had cheap abundant and global energy supplies in oil so sceptical and it's truly scarce and as you point out these other minerals and precious metals are available in another

places in the lower system and in the universe and not so well with big going it could be that the scarcest come on. any that we have ever come across and the desire to own it is quite powerful and the hashing acquirement gets to a point where the chip can't keep up and you see a hybrid human and then android. merge and so that hash starts infiltrating our collective unconscious is what i'm saying is that the hash about that 102-010-2000 extension 00. could tap tap into our collective unconscious and use our minds as a collective computer to ask i mean big corners will do that as a scientist is that even you know him i totally off base there let's put into 2 categories like the hash rate must go up in because that's what the coin wants it's obviously not going to consume 100 percent of all our energy that would be

ridiculous we need to do things like record shows and travel and eat food and survive so there's going be a maximum amount of energy because we can consider is a big point was energy here giving it anthropomorphic quality you're referring to it as a as a or as a hungry hands it's a already in many ways it is ok it is it says he and is and isn't self-aware i've for i posited that iran block 300000 became self-aware it reacts in that way it's alive right it's build it has a certain aspect of homeostasis built into it rebalances itself based on global efforts by billions of human beings well maybe millions of us who actually know about it today so that sense it's reactive i don't know that it's a lot or that it ever would or that would even be an advantage but i do see it lifting us up in very many ways maybe it helps push us towards cyborgs that are hashing all the time as they think and walk around or maybe just incentivize us to go get energy cheaper faster and better than we've ever had to for because today if you were to unlock a big supply of energy in some location what could you do that you need to market

to sell that energy and make when is this ever increasing for of a market that no matter where you harvest the energy if you can burn. by mining big point you can get revenue from that so if there's energy in space that we're not harvesting we could collect it and turn into big corn if there were nuclear power plants that we could invest in to build that might be something we decided to do because it helps us get picked on and this is a story of people who understand that actually because it is green it is ceo's is renewables and it goes and seeks out where there's excess energy and that's not being or it can be green i think because x. and it forces us as an ecosystem to go collect energy in the most efficient and at ways we can and there's a lot of headroom in renewables and alternative energy sources because we haven't had investment to go out and get those as much as big ones prompting us to finally do there's a lot of work and study and writing that it is a living organism it's mistakes energy yeah and it's adaptive it has all many qualities that want to scribes to a living organism or maybe the organism is because the miners the users the society

it's embedded in and the 1000 year long millennia story of decline is the expansion of that organism to new locations in space to harvest new amounts of energy well there is a 3rd of the gaia i'm not sure if really with yeah sure the 2nd are all part of the same living organism the rocks the trees the animals and salt has a heart beat him it's own a cosmic heartbeat if you will that big point somehow is is the engine is emerged as a way to nervous system it well i think to tell you the truth it's coeditor created the universe in my opinion as trying to find their way back in because they became anonymous and they went on to create some other stuff and were unaware and then they look back and they said that whole thing i did that the earth is turning into a cesspit i need to hack my way in and reprogram human brain because it's going down the garbage and this is this is a big coin this is the ashtray and that they were going to be reprogrammed and one

whatever block number it is we're going to we're going to take a different angle toward law. i am a scape our destiny as it is right now and of death and we certainly be i think hyper pickling ization is sometimes trotted out at this word that means that because yours will get rich because because we were thought that might be one of the things that happens in the context of it but i think the word itself to me is weighty because it means so much of what we do a society which is driven by incentive structures money the exchange of value contracts all of that can change and doesn't say if a coin works we won't need money. i don't think money will think about it differently certainly well being a part of the collective. if we go from the west back to the east will be just a good thing on the way of our own collective enchantment all the way to the stars to any non muslim oh well we got to go are you heading back to austin texas which by the way the symbol of the logo is keep it where indeed and here over there

unchained capital which i understand is an emerging institution that's. breaking all the rules and getting a lot of traction so congratulations with that thanks for being on the kaiser and thank you max that's going to do it for this edition of the kaiser bar with a mask guys or stacy herbert want to thank our guest drew the bonzo all of unchained capital if you want to catch us on twitter at kaiser report but i found bio.

and very well now can see you you'll want to know since just. over the last 3 decades the european union has seen its enlargement as a way of helping its eastern neighbors democratize well keeping them firmly within its geopolitical all but as the e.u.'s mantra the bigger the better proven to be the case of. what politicians to do something to. put themselves on the line to get accepted or rejected. so when you want to.