[000:00:00;00] was a. hello america azure this is the kaiser report a man to a quick low dial 180-000-0000 extension 0000 more on this. ok boomer you are a boomer and you sound like

a boomer always loans loans loans debt debt well i want to start this episode with this theme of boomer which has gone viral of course and that's the millennium versus the boomers the millennial. basically rising up ok they're the biggest voting block on the in town and they're searching asserting their power so 1st to put the context of what's going on in america that's ok boomer thing i want to look at this chart and this is only from 79122010 the shows the u.s. national debt and the u.s. annual g.d.p. says he see from when we started our national debt in 17 $9100.00 all the way to just after a while where to we had almost no debt g.d.p. stayed flat and now the least nominally our nominal g.d.p. is going up rapidly but it's almost entirely with debt and as we know from covering

drone powell last week you know that is starting to we were having to create $3.00 a day just for $1.00 g.d.p. said those are going to cross at one point but this is important to understand that this is the boomers and donald trump is the 1st of the boomers the 1st wave of them born in 1906 this is the world they know where everything goes up it's always getting better everything does get better numbers wise even if it's not just dell model they always say number go up let's look at another day 1776 you know in the beginning of what we now know as the united states of america. during that 240 year proximate period of time interest rates have never been lower that's why you have so much debt because the cost of incurring debt is for most people on wall street is a row. of cost anything and used to be going back even 20 years he'd have to pay $5.00 or 6 percent in interest to take on

a bunch of debt now to 0 in back in the in the u.k. recently they had interest rates at a 300 year low price so there's no cost for debt if you don't have to pay for it any just get it for free get a bunch of money deliver your office for free and you can go buy tiffany's with it or you can go buy a big productive utility with it that's guaranteed income or buy huge corporation with it. well there used to be a cost to debt which is why we did not incur any debt which is why we could not as a nation and that's why the g.d.p. stay flat along with the flat levels of debt baby boomers were born in 1946 s. the 1st of them the debt started to rise g.d.p. also started to rise nominally with that $1071.00 of course when the 1st of them or what $2223.00 we went off the gold standard because the cost of debt was real we

had to send several tons of gold to $300000.00 worth at the time to france when they showed up with their naval ship in the new york harbor so there was a cost to it then they got to unhinge it and they of course it was a magic trick right but the boomers have a mentality that they are somehow. in daoud with amazing ability and entrepreneur and wonderful talent and wealth creation when we see the magic trick they were nothing special they were not unique the only thing unique about them is they had no alleged cost to their debt but now we have a new generation who wants a similar trick done for them entering the workforce and there is no trick you know we've were trying things like quantitative easing and negative interest rates we had never been tried in 5000 years and that's not doing the trick yet you know if i'm right and i think anyone richard nixon couldn't afford the war anymore because he had to pay in gold for the money he was borrowing so he cut us off from the gold standard then you entered a world of purely

a selfie of money refers other feet of money it's a bit regress right there all the yen the euro the dollar they all refer to each other and they're all going deeper and deeper into debt so there's no basic there or there there's no stairs no way to measure the debt against something that is good because that are money remember j.p. morgan said only gold is money everything else is credit or debt ok so without that there is no way to measure the debt and there's no at the moment you know my my view is that this is leading to feudalism or you have just a few private equity firms owning 98 percent of all the assets of everyone else's living service on that we're getting back to the dark ages and in my view so we're going to look at a few other stories to suggest yes there is the top 0 point one percent that you talk about but within that structure is allowed because the boomers got in 1st on this ponzi scheme we have

a global ponzi scheme in the boomers were lucky enough to be right there when it started so we're going to show you how they benefited most versus generation x. my generation which came after them and now millennial are doing even worse z. forget them right fraction of us wealth owned by boomers and gen. narration extras when the average member of each was aged $35.00 boomers and 1989 they owned 21 percent of us wealth generation x. in 2008 when they turned 358 percent so dropped by over 50 percent the average millennial turns 35 in 2023 right now they own just 3 percent so it's dropping by 50 percent because the early members of that ponzi scheme have to be fed and there's less and less wealth to share with the bottom mill days when the top 110th of one percent took all the power and money they would put everyone

else into ghettos or they would put them on to service or indentured servants or sharecropper successor here in the modern age of 21st century this is and this is engineering using interest rates so the millennial. the gen x. people they cannot borrow money at 0 percent they have to borrow money if you know on a credit card 151617 percent or they go to a payday loan which is a annualized rate of return in 2003000 percent right so they that's the that's the ghetto of the 21st century is your borrowing costs that are high so you live in a in a what i call interest rate apartheid you live in i'm bantustan of high interest rates and you're never ever going to get out of that because the policy is a is interest rate apartheid that's the policies that are economics and how does that happen how does your credit rating happen how are you redid your social credit score essentially well it's by how much debt you have compared to your income so

the boomers they were born right after world war 2 we had no debt here our economy the g.i. bill like finance everybody's free education all everybody was educated the suburbs were built like you know these are. basically government plans helping to build and facilitate these structures then now the generation x. y. they don't have a home by. 35 years old it's because they have all that student debt so they have a lower credit rating just they're born subprime they're born with that so therefore their rating their credit rating is lower meaning their interest rate is higher than what a boomer can because a boomer got in 1st on this pyramid scheme of a economy and they have more equity than anybody below them so it's just is this natural anybody in 1st in a pyramid scheme has more equity they're getting a bigger income stream from those coming in the response from the left. is

to go after the billionaires and say we need to raise your taxes. and the billionaires because they have all the power will resist and i can see that happen but what they should do you know give them the recipe now to increase their power is that they need to get a seat at the federal reserve bank they need to get majority on the fed and they need to raise rates. to restore equilibrium that's how they will get a piece of the pie when when donald trump says the fed is to lower rates or go negative that should be the tip off that's the vulnerability that's his weak spot to put it in terms that the millennial understand pretend this is star wars and the death star has a weak spot and luke has to fly in and hit that exactly expand to blow up the death star ok so the weak spot for the death star that is the federal reserve control global economy is interest rates if you can control seats on the federal reserve board or the federal open market committee and get rates to go up then trump

collapses the republicans collapse the concentration of wealth collapses the wealth and income gap is restored to normality and you have agency once again of this economy that is the only if that's the only spot you can try to hit there and hit their hit there and you can look great doing it but that is going to be ineffectual well here's another way and the wall street journal in fact is suggesting that's because i'm curious because you know the top one percent own all the stock market that helps their wealth on paper look enormous the average boomer why they're ahead of the in that discrepancy in the wealth it's almost entirely down to who house prices they were 1st in on this house price to member when they were 1st entering the market they had to put 20 percent down now it's down to one percent or 2 percent that you have to put down in order to leverage up and keep those high prices on homes so that the ordinary boomer feels wealthy well the wall street

journal points out boomers are about. to flood the market with homes will anyone want to buy them the headline of their actual article reads ok boomer who is going to buy your 21000000 homes baby boomers are getting ready to sell one quarter of america's homes over the next 2 decades the problem is many of these properties are in places that millennial don't want to live so you know this is power you're they're forced sellers you're the unwilling buyer just don't buy don't buy from them and there that that ponzi scheme collapses this is the thing about pyramid schemes about ponzi schemes let's call it a pyramid scheme in this case it's just own was accidental it became accidental 'd and now it's intentional to try to keep it afloat well they have a career on wall street my minute response would be to acquire all these distressed properties by the millions and package them as an offering that would

get congress to pass a law that would enable this to be sold off as a tax write off right so you're converting losses in a tax write offs and you're going to give the top 110th of one percent a way to shelter income remember during the resolution trust corporation when the s. and l. market blew up the wall street got congress to package all the bad banks and sell them to people like ron perlman and carl icahn and others as tax write offs and they didn't pay taxes for 2030 years and they made another few $1000000000.00 so i'm not i mean ok i'm not sure i'm merely i figured out a way to make money on that the way that would kill it is if interest rates were higher and you could you raise my cost of borrowing now suddenly my net worth has to be marked down because it's all based on mine it's all based on having access to capital at 0 cost that's the problem is house prices and bubbles can only sustain itself if people can keep on rolling over the debt we've been rolling over the debt since night you know interest rates have been

a lower and lower and lower. since the boomers were 35 right you know since then interest rates have been going down now we get them retiring from this pyramid scheme and interest rates are already near 0 so the problem is how how can we get the pyramid to continue for in that of the 20 years where they don't these $21000000.00 homes pay less in wages and open up a global noble labor market able to expand the debt in order to keep their prices that they have in their head for their of times you can expand the debt well ok let's see that you know i think what hasn't happened ever extended this like 23 now that because you're a boomer is the audience know how ideas is going to say ok boomer that's what you relied on for your entire life i don't give you the recipe to fight back millennia old jonesey you know but you're not going to do it because you want to be like i want to take

a break when we come back lots more coming your way. in the special something we can thank you so many of them. but it also helps when. you talk to home don't be can russia think was over forget it missile parts of the formula talked about earlier come to the shore we have them all steal someone's muscles and. russian outlets eligibility for the international competition says that state this includes events like the tokyo olympics and the fee for world cup in qatar if i am in delhi as my show you know it's just not there when you come in you know just as it was 4 years ago moscow anti-doping plavix at the center of the scandal so who tampered with the doping samples database and what does greegor you want you guys have to do with it and you know she still is restartable as i mean

you know. what's up with the sports. and that is the push on the richest guy he was up by to expose some innocent that's a little too little so the bullshit initiative in the book. what politicians do something that. they put themselves on the on the big get except the reject. so when you want to be president or injury. or somehow want to be rich. it's a going to be prosperous what will befall scree in the morning can't be good good i'm interested always in the waters of our. first sit. welcome back to the kaiser report i'm max keiser time matter return to our

conversation with ross ask rafi's the director of the 4 horsemen 2012 he's also got his own show out there renegade i think and a it's a must must must must see viewing if you're interested in this shell you love that show ross welcome back good to see ross heading into 2020 or leaving 2019 ers ending with us stock markets at all time highs for political office rising across the world are these 2 connected what what are some of your thoughts heading into 2020 everything's fine max by making those investment decisions it's never been better because that's exactly the my room when you don't you don't go like everybody else mouth and buy into this mania is sort of if you're shoeshine boy moment when you know the shoeshine boy so it's your bow which silky well whether he's got whether he's longer or no so i think that we're in the most precarious position and i think this euphoria is

a mosque and i think people should be very very careful over 2020 because so many are saying it's going to be the year of reckoning the year of reckoning although i sounds a dramatic so let's break it down they have a specific points that we should be looking ahead for 2020 some predictions some some insights are off i think the 1st thing to say is that 202-021-2020 will be the year is looked back on when people realise the mainstream media at last has lost all its trust specifically as asians at the b.b.c. they were recently cool and seeing footage to sort of brush the people that they think they should be presenting it will close its way. the public on cheap and social media. bloke is out there who are really watching really catholic and not being manipulated by these big media but he will say any more all right so

tight area we're going to say mainstream in finally get it's come up and even though they have worked doggedly platform so many independent media splash sources out there we're seeing a lot of big names get the platform no longer in the media landscape but the same that's going to save mainstream media because they're fascists in collusion with their own racketeers on wall street and the kleptocrats of a political center as it is is on on tenable by the small ideal and this generation is e who have come up with this new me new catchphrase call of no paper were ok i sell a book or story video at our being slandered by the by these youngsters look at what's happened look at the intergenerational story that's going on so you and if you think about it the b.b.c. the average age of the b.b.c. won't here is about 58 average age of b.b.c. to the u.k. $66.00 the mainstream media got

a massive problems and the new independent media shows like yours really aiding and others telling our reason the viewing figures are all going in the right direction is because we're actually reflecting what people of feeling in their lives we're not telling people which is what the m.s.m. the mainstream media do all the time they're very didactic they tell you how to think what you should be thinking we should be looking out what you shouldn't and that when you go screens now in the world people will go and seek out the veracity of each story and make their own mind up and i can only be a good thing for democracy and societies as a whole so i think create mainstream media with us or to segues into something else and segues into the sort of prolonged your kind of occasion of the west so that's another prediction i just think that the stagnation. it's just going to continue and grind on and all in all i think it was shiller one of the german royce he said you know man can survive anything but a succession of days and that's basically what we're going to see over the next

couple of decades because as you can see now this ongoing stimulus that doesn't have an effect on the real economy is laboring under massive amounts of private debt so my 2nd prediction is only going to kind of situation. across the developed worst yeah what about the bond vigilantes remember them they is still to sell the bond market off when the inflationary pressures are starting to rear their ugly head and inflation has been outlawed thank effectively because the central banks have an infinite budget to buy all the bonds that they need to for eternity to keep interest rates low to to kill the bond vigilantes to make it a shangri-la a la de da a economic environment where wages that are go up at stock prices never go down and i don't see any reason why that can't continue in 2020 because the balance sheets of the central banks they're there at roughly haven't seen the numbers in the last

few weeks for let's call 50 trillion dollars they could easily go to $200.00 trillion dollars ross why why why not just as logically and that every central bank basically owns everything right and only jump in 1st 2nd ross because in my view that's exactly the end game it's called taking the world private wall street with the help of 0 percent interest rates are taking all these companies private all these big deals all these big mergers you know i say feel the packers are going to be hostile raided by xerox tiffany being bought by l.v. and european luxury goods it's all going private ross that's where it ends and the dow 07000 so what does it really be out sooner and through everybody in the federal reserve and runs the world from the feudal feudalism male. feudalism do you think that the public having been smashed to pieces decades certainly austerity in this country do you think the public are going to say yes because the public has

been proven time and time again to be easily pawned with key programming and and cheap calories with cheap food and they have know about ok that made it seem to sell the the public is it is stupid but i do see some bright spots with like elon musk and jack dorsey combining forces to come up with new technology and new emphasis on digg glug digg lobel ization the dollar is asia and they're trying to rework recreate the world by making everyone individually sovereign and using technology and solar panels and things like that but if that doesn't take off i just see a return to the dark ages and saw him there anything after everything from the enlightenment going forward would be just a bad dream we're back to feudalism and and serfs and kings i mean the public what defense is a public have what how are they going to fight that the 1st things 1st the longest

the so those windows are on the truck right so he's busy and jack dorsey says so all that shiny new shiny bunning out on threats or so the 1st 2 things that need addressing this are far as certain equality it's really interesting what's happening in the u.k. when you talk about serialism because n n if you heard about it there's a guy called prince andrew. and that's not a prediction that's when he 20 i think he's going to start sweating again and if you when you when when system starts you can look you know people make really big errors he's made one recently and really it's made what is ordinarily a very very proud and pro-military country really question the structures that we live under and i don't see this economic conditions deteriorate and get worse i don't see that questioning is not the center. going away however much the mainstream media china russia so i'm probably a little more hopeful and i think that you need this level of creative destruction

and economic crumbling if you like before the green shoots can come through but i do hate you about the monopoly effect that the central bankers have you know sonny with the money supply and also the terrible terrible political decisions that we are all enjoying at the moment but i don't think the public will take it for what about global that table a you know that's a that's a big yeah interesting set of what is what are your thoughts on that i mean we've just been interviewing andrew ross and he wrote credits oprah say now the embers of occupy are still burning they're still glowing and when you realize that senate many so many students in america are so indebted that actually they can't answer in syria the norms of the economy norms of society you realize that you're going to have to strike all that debt so for a global debt jubilate yes we need to get rid of all the private debt but when it's

a start and bernie sanders is very good own nest writes a star is a student debt jubilate because if you want your future and if you don't want your kind of the cation of america which you're getting at the moment and you know what that leads to intergenerational mortgages which is more debt more private debt bigger juiced asset prices i'm all going to says for people like jamie diamond if you don't want that what you going to have to do is get rid of all that debt and i tell ye the way to do it is firstly cancel it and secondly if you're going to use corporates are going to be using students that are coming out of those universities increase all the taxes on those guys and use that sax dollars to pay for students in the 60 statuses to burn their draft cards whitewash instead in some 21st century burning their student debt obligations and his the key point on this right you can't do it as a student watching that individually you have to organize 1000000 students every

year. it's their fault i'm counting on make those payments as a huge amount no one really knows about because because people are going to be ashamed of their will it talk about their financial woes so what they have to do is everyone has to organize and collectively you get that debt structure all right well it's hard i mean during the ok the vietnam war protestations if you saw your friends coming back in body bags it was easier to get a softball movement going by here and it's like a victimless crime because you don't really see the carnage we're told it's a victimless crime and there's always going to be some students that are going to be like well i'm going to play the game theory hair and i mean hey i want not to burn my dad and i'm going to java j.p. morgan and i'm going to be running a company one day right so yes how do you get folks to act in their own self-interest as a group trustee or explain to them that there isn't this isn't victimless it there's the down side to all of this is also really

a society's ruin but on the way all the mental health issues that go with it there are people there are serious a great surge going through the roof there is a total shunning of entering into society because students have sales surged disenfranchised the glass rates going down all is indicates is socio economic indicators going the wrong direction so this isn't great symbolists this is very well organized and we know who the organizers are so what you do is you say you explain that to people and maybe some outliers want to go off to j.p. morgan 'd and you know straight to their life away looking at spreadsheets but others who ones are on value start businesses create the entrepreneurial class really what in the real economy do all the things that give meaning and purpose explain to them that actually they have a lower level of geisha not supposed to step. moral obligation not to pay the debt

ross astronaut thanks for being on the kaiser report it's a city that's going to do for this officer the kaiser report with me mask guys or station i would like to thank our guests ross abstract of the renegade inc and the filmmaker behind the global smash hit the 4 horsemen in that film by the way probably the best part anyway if you want to reach us on twitter it's kaiser report until next time by. join me every thursday on the alex salmond show and i'll be speaking to guests of the world of politics sports business i'm showbusiness i'll see you then. when there is only johnson. and i just got out of prison for.

41 has. sent me to his home. i got arrested somebody to. go on like this everything was taken out. i was working. think it was. meant to snow man and look you know took him back maybe. about. homicide. now. we're kind of tough through this. so you're going.

to go. thank you.