new. new and improved right those 2 words trigger a response like oh i might buy something if it's new so the marketers and the profiteers who run america's defense policy. embrace this idea and so like instead of saying new coke is something different and better than coke right they're saying operation desert freedom scale turning desert to glass it says program you know that's new and improved it's then it was the member stormin norman you know all the branding so it's a branding exercise and 70 percent of the american economy is consumer so we live by branding exercises and we live by branding so this is the defense department in the pentagon and bracing to sell the multi-trillion dollar death wave death machine that they love to push into reason it's

a branding exercise well why did they do that branding exercise max because they need the people on their side and to think that we're in a constant change of like we're always progress ing right the vietnam war why we had an anti-war movement is that because they went on and on and on and people are dying and dying and dying it be from the same exact word vietnam here it's like it was shocking our memory invaded iraq with shock and awe then enduring freedom the same thing is like if you keep on telling them we're still in iraq are still in afghanistan still fighting we're still dying people are still dying soldiers are still dying innocent civilians are still buying people might rise up and stop it the same with the fight against the black hole of debt consumer economies you know what they keep on doing is changing the name it's quantitative easing it's operation twist it's deserved it's nerve it's now we have not q.e. q.e. not q.e. with this repo market intervention i'm sure i'm missing a dozen words and then dozen names that they've called it all. for the past 10

years but they keep on changing the name of it for our this is what i was alluding to in my introductory statement is that discounts of the same that the names change and it's a branding exercise so there's only one thing the central banks can do and it's the only policy response safe since paul volcker left and that is to print more and to take interest rates down to 0 and then without batting an eyelash banks in europe decided their central banks in europe decided that 0 wasn't even a boundary we can go into the bank if interest rates but they're really trying to rebranding the exact same policy is to encourage the transference of wealth to the ever fewer top plutocrats and to disenfranchise billions of people around the world and to then claim that the uprisings the global insurrection against banker occupation that we see in hong kong that we see all over a lot america central america america europe france the indignados as you lay joe

sobran vet as being something other than just a response to a plutocratic grab of the globe's resources with free money well max used to pull true. done square that sounds best if we use the full tricks magic tricks right and i think is the preferred you know verb in that case well how do they get away with this over and over how do they get away with forever wars how do they get away with forever printing and the way to get away with tricks you don't want to inform the population right you don't want an informed group of people in front of you performing that trick in times square because then they're going to be like i see how you did that trick that's not fun right you need to distract them divert there is call mr x. and mr i use the word common amongst magicians circles ok well that is mr action is the constant renaming so you can never stay ahead of it and people are busy people working there their pay all their tack. they're paying their obamacare day and they

can't they think it's a different name in a different war must be a different place but they're also according to this shifting expenses to exceed the budget so a budget is agreed they say ok we have $50000000000.00 for this war well what they do is in fiscal year 21000 the trumpet ministration made the practice of shifting emergency appropriations into the base budget over when it introduced new ways of categorizing the department of defense spending relating to the overseas contingency operations this is some of the funding that was previously designated for a specific military operations has now moved into a category called o. c. o. for enduring theater requirements and related missions and another o. c. o. for base requirements so they they shuffle the shells around so you distracted from not only the name but the budget like how much it's costing him right so mr action and major multi-trillion dollar defense budgets has a new name it's called m s n b c who is the sponsor of m s n

b c but the defense industry lockheed martin boeing have ads on rachel maddow show you wonder how they rebranded the same. the same genocide they get rachel maddow to yes track to use mr action the distaff see how they get away with it they've got this talking puppet talking nonsense conspiracy nonsense she's the new alex jones except she's now in the employ of n.b.c. which by the way is owned by comcast which is involved in some nefarious stuff to distract to the to mr wrecked the audience to get away with rebranding the genocide that america perpetrates she's rebranding the cold war the left used to be against . this sort of hysteria and xenophobia but now therefore it's so in a convincing by that that when you have to do by guys like rachel maddow does like adam schiff you know well actually i don't as

a dog i think glenn beck co-opted it on fox and yet a brilliant career and then he moved over to some other network on his own accord because you want to bug you know once you go by guy you can start to go back you can slip down the rabbit hole and go insane alex jones glenn beck and is rapidly losing all connection to sanity it seems like back from the days of harry houdini like it seems like the bug guy thing is like i don't know who gets convinced by that like. see all you see telling that you know the people who works for would be the guy who ran the hell bob comic cult yeah gotta be white as they were in the comet and then they are jim jones from the ghana massacre those types of serial massacre perpetrators out in the jungles around the wilderness or adam schiff got the bug i think right he's trying to have a democratic party commit mass suicide right so he's got the bug he's got the bug i think. this is really working because the democrats are going down that rabbit all

they won't you know when you have a static stop digging oh my my theory is that if as soon as you see the bug they're telling you they don't even believe their stuff they're pushing out there like most likely they're knowingly put on a life circle let's go back to that comparison to the financial war because the financial war is an ongoing forever war as well and this is never going to end interest rates are always going to keep on going down like michael hudson says it could go to negative 25 percent because there is a forever pile of debt the bankers the you know whoever runs the world these top one percent who get to issue all these derivatives thanks to bill clinton introducing the commodity futures modernization act in 2000 they get to print more c i'm doing the debt the bugeye so you understand that this is true. so oh i'm sorry that was another crazy ok or of these oh i'm reading the headline the fed slaps down negative interest rates the minutes for the f o m c meeting on october 29th the 30th shed some light on the laundry list of

discussions arising out of the fed's current review of monetary policy strategy where it figures out how to line up the tools to be used during the next crisis and which tools line up so basically again they use the gobbling of the military industrial complex systems the finance the monetary industrial complex well basically they're saying play terms is that the negative rates in europe are crazy and insane and we're never going to go that far but they are because they'll have to because we're in a forever war. they do say that in the next financial crisis they'll basically go to 0 that's essentially what they're going to they're going to do but they won't go negative they say they don't want people to rush out of the dollar too fast right day jay powell finds the idea of a negative race you know apparent yes repugnant but he'll do it do it because he's a general right you've got to follow orders this is a big issue right now in the united states who set who if you're commanding officer tells you to do something to commit suicide with your monetary policy you've got to

do it and that's what he's going to do that whatever is head of the fed at that point they're going to do what they're told to do and their bosses in that case are probably while street banks right is j.p. morgan it's goldman sachs it's whatever banks still exist 0 hedge says in a bizarre admission e.c.v. warns its policies threaten financial stability and could lead to a crash so while that low interest rate environment supports the overall cami we also know an increase in risk taken which could create financial stability challenges said e.c.b. vice president louis to go and buy because it came to zombie banks alive ok so we were saying now for at least 6 years and we also have been saying categorically that lowering rates does not fight deflation it causes deflation and now the european central banks are finally figuring that out but it's too late but this is also they're admitting that it's killing the civilians that there's a lot of collateral damage just causing those who aren't normally risk takers like the pension funds to take on bigger and bigger risk without any sort of reward civilians i've got the solution more formaldehyde all right well we're going to

take a break and when we come back much more coming your way. lead . the 4 leg. length. leg length play. live.

plenty . plenty. plenty. oh. please. live. lists lists lists lead. lists. playing. and very well might continue watching on since last.

always still got units are 2 types hanging d. that's one good clean sneak. on diplomatic record over the intercom a description of the new you come. into could want to think about getting out of your canadian each room until one look at him as all of. them do eat too much haha good to be a good told. me to get to fail when i'm in a good job until i'm the thought that you can fire one next time you don't come fall through the marketing.

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house of representatives has wrapped up its 1st round of impeachment hearings against president trump but it's not done with trying to oust him with new impeachment proceedings ahead is impeachment of viable strategy against the president. welcome back to kaiser report i'm ask eyes are time now to return to a cloud of gold money dot com as allas i must inform you that i'm an investor in the company also welcome back nice to be back max the erratic all money dot com that in a post titled 150 years of bank credit expansion is nearing and. in it you write

that iran is slated to be at the business the origin of the boom and bust cycle is found in the bank in bank credit. let's get into the skin into this house or elaborate at the 1st point i really i think is absolutely it desperately important is to understand that a cycle of business boom and bust is actually not a cycle of business boom and bust it is driven by expansion and then a rocket contraction of bank credit what you're looking at with business is going bust periodic actually is rather like the relationship between spots on your face and measles you know the spots of the disease the disease if you like is fog deeper and it really does come back to the expansion and contraction about credit and in that article in the 1st section i go through the cycle of how the cycle develops

from a bank from a banking point of view and you know it's a mixture of of the initial expansion creates a feeling of well being in the economy and bankers see that and they confuse that with things actually improving and so they expand their balance sheets even more and they end up as we all know in a sort of a sort of stage where we got to in 2007 where everybody has. all the banks have expanded their balance sheets and that case even expanded. off. she's had it with securitizations and all the rest of it and all you need is just something to happen all the slowdown. and then some only the banks get frightened because. fractional reserve banking gives you wonderful profits when things are going up by goodness they really kill you what they've done so the 1st thing you do as a banker is just run for cover all the banks do it at the same time and that's why

we have a banking and systemic crisis want separate i don't know anything between 7 and 12 yes and i think would you another one but it's not always been the case because you know going back 40 years or so where you had more the economy was less consumer driven and more manufacturing driven the cycle was driven by inventory and inventory build up say that the factory would get more efficient in producing a certain widget the supply of widgets would go up and the prices would come down and then there'd be a slump and that would be the business cycle but it's during the deregulation period starting in the eighty's we left the manufacturing floor and we entered the era of financialization so it is a relatively modern phenomenon because really because it's only been recent that the banks the product of the of the western economies is credit that's that's the product they're selling us our loans we don't buy stuff anymore the stuff is

worthless for from a business perspective it's only the interest attached to the loans that drives the bankers revenue you know their salaries right so it's a relatively from recent phenomenon isn't there it's not it actually started in the wake of state bank shot at of $844.00 we brits were responsible for it when the bench off. field was it was an act it britain basically was the most powerful nation in the world and sterling backed by gold. it was the most powerful currency and so what we did in banking was effectively the model for everybody else before that 844 charter back charter act it was generally acknowledged that if you took a deposit to deposits you know someone's cash and stored it if you like it was a custody or faction function and it was not something for the bank to take and

then to play with at its own discretion but it went worse than that because the point about the bank charter act is it is a large banks to create money to loan money into existence and it did that basically by. giving someone a credit if you like on their account and as they draw down on that account and they pay other people that money suddenly materializes in other people's deposit accounts and so that way they have literally you know if if i learned a 1000000 pounds i am loaning a 1000000 pounds into existence and that whole thing was legitimized and i think it was 848 when case law found very clearly that bad could do what it damn well wanted with your money and has been doing so ever since what you're referring to about manufacturing and all the rest of it i mean obviously over the decades and

indeed the one enough centuries the character of borrowing has changed very radically i mean when we would go back to over and go on a which went bust in 866. and drove bank rate up to 10 percent and remember bank rate was was was in gold at that time. you know that basically was a discount house which started to do what. investment banks like j.p. morgan do today they go and invest in other things which they don't necessarily understand. and in that case it was investing in railways you know a bank which is the leading discount house never buys anything more than 6 months suddenly is investing in railway companies come on it doesn't know what it's doing and the result was there was that crisis bearings in 8090 same thing what they did was that they got to the point where they were doing so well the

domestic economy they thought well you know let's look at broad so they went and invested not in argentina argentina went wrong and the problem pretty good investor abroad is that you don't necessarily have a legal title you don't have control of collateral and all those sort of very basic things. and at that time brazil was also in a bubble all that collapsed and bearings was just about wiped out in fact they had to be saved by a consortium of london banks and nathan ross child who was of the family at the time said that if that rescued barents the whole london banking system would have collapsed so there's nothing new in what we're seeing in this millennium this is been happening ever since $1844.00 when this process of loaning money into existence was legitimized under the bank. ok fair enough i mean that's

a great synopsis really have 150 years of banking and to your point your time the boom and bust cycle to to bank credit cycle say and you're suggesting that the banks that they make credit easy at very inappropriate times entered extends bubbles and they pull back at the worst possible time and they make contractions worse right so we're relying on bankers too much and we are removing actually the forces of the free market which would be much more efficient in rectifying some of these excesses in the marketplace by giving that. to a few bankers and they've done a terrible job at it for you know hundreds of years i guess you could go back to 1694 i think is when the bank of england was chartered so you know that probably kicked off the whole nightmare right there well yeah it was it was a bit different in those days ok ok well we'll get into that next next time but let's move on so you also write about the resolving creeping communism it seems

that historically the sort of thinking emerges after extremes of plutocracy ok so in other words we have established that there's nothing not natural about this boom and bust cycle it comes from an artificial credit cycle that is driven by horribly inefficient and to some might argue a criminally minded bankers and but now the reaction from the populace is moving toward communism that's to go to grab i'm going to we're going to come socialist that seems to be what they think always go for. it was there a direct link and historically is that a repeat is that what we always see i mean if you have on sound money by that i mean the ability to buy off anyone who says you know i have got a complaint or i've got an interest in it you know i deserve the money i deserve to be paid i deserve this i deserve this out of society. if you have that culture

which is essentially a weak money culture then you're going to go in that direction i mean the only way socialism can be. direct and funded is basically through inflation through monetary inflation because you know the rest of us actually you know who all socialists have to work for a living and we have to look after all our affairs we have to make sure that we don't. live beyond all me ok let me just for a 2nd how come it's so difficult to communicate to folks. that the problem is with these being and these bankers and what they're doing you know we talk about it on this show for years and years but we don't we don't make any headway because the response from the from the folks that are being victimized by bankers is to go socialist they don't want to punish the bankers right i mean during the reign of terror in france they got rid of a lot of bankers quickly you know and that seemed to work for

a while walk and there's no muscular response against the plutocracy why is it always well we quit let's become socialist and grow our own vegetables the problem with baucus is their license by government and not only that but they are integral to the financing of government debt so then they're going to knock at the bankers i mean they're there for a purpose we think that they're to help us you know produce things in industry no they're not that is a secondary thing that is the excuse but actually the reason that is to enable governments to borrow money to do things which they could not afford to do if there was no monetary inflation so they're not going to stop this cycle this cycle is going to have to stop a bit so and i think that is probably about to happen which is why not also but i reckon that after 150 years of this. fraud it is really a. monetary fraud i think the whole cycle is likely to end this time

and ok job it is that stroke of money if that's the case and we have about a minute left where you see gold in 2020 well it's not a question of gold it's what happens to paper money paper money is going down backs and so that's reflected in the high price for gold it's the same with it call it if you like that would do almost exactly the same thing as far as i can see i'm not sure how to take that it sounded big us but alan and i thought oh if i let the audience figure that out because i don't want that we have a 20. it's left what about the settlements layer we talked about this a bit in the last episode does the u.s. china u.s. trade war hasten the arrival of the alternative to the dollar and the will this be revealed in 2020 we've got 10 seconds. that polling best maxed out it's going to get worse i have no faith in the policy coming to some sort of agreement.

quite simply a financial wall generating into something worse well we're out of time thank you so much else from acclaim for being on the kaiser report by precious already that's going to do it for this episode of the kaiser report with me max keiser and stacy i would like to thank our guest alsa macleod of gold money dot com if you like to get in touch twitter surprise reform tax on bio. young elephants have come to us. especially brutal budgeting incidents because you so often do see their mother as. killed but also. smile i see it simply someone's home for the express untamed says.

the. nato military alliance is a relic from the cold war back then and it was relevant in even necessary today it is an alliance in search of a mission that's sure as almost we hail eastern expansion towards russia but a lingering question remains is the average american and western european interested in a war over the summer the stone. in this community there are people who believe that it's ok. it's really hard there are no jobs and you see the kids. and as a parent. i can come up with arguments and there's a lot of conflict within the game and between the teams most of the conflict i

would say overall is around money and most of them money is made. close one on the children's clothes seen on each other is good business the state of california alone makes $6000000000.00 a year of the prison complex just to get some $25.00 where. you don't care anymore nobody cares about you so you don't care might anything. 6 that.

is. nothing compared to the. president trump announces a restart of peace talks with the taliban in afghanistan during his 1st visit to the country. the french president doubles down on his criticism of nato after describing the military alliance as brain dead. and a german court rules that a convicted murderer can have his online details are raised under the e.u. and right to be forgotten we put the issue up for debate. when you stop so i could stomach events then adds another dimension this person trying to better themselves the trying not trying to raise the past the trying to be given a fair shot the way of thinking you know what clean slate start again.