i think has figured out that where you're starting to see it and that is what's behind the sub prime consumer loan implosion these are the good times but why are subprime credit cards auto loans and short term installment loans blowing out ok we've got a situation in sub prime consumer loans the delinquency rate on credit card loan balances at the nearly $5000.00 smaller commercial banks in the united states this means all banks except for the largest $100.00 is blowing out according to federal reserve data and the 3rd quarter the delinquency rate at these banks rose to 6.25 percent that's even higher than during the peak of the financial crisis so the delinquency rate has more than doubled in just the past 2 years delinquency rate means 30 days or longer overdue your payments are. the largest banks have delinquency rate of 2.58 percent so half of what you're seeing in the subprime

sector. and as we cover here one explanation is greed and that these you know they used auto dealers are just pushing loans on people just to get that 20 percent you know interest payment for a month or $2.00 knowing that person's going to go bankrupt so the missing inflation number has been discovered right because as you point out he donek adjustments hid the inflation and when the government reports the inflation numbers if something is rising in price a lot they cut it they don't report if they don't put it in the basket of c.p.i. don't put in the basket of the inflation index that they use to report on inflation health care was getting too expensive so they removed it however americans are now borrowing lots of money for that skyrocketing price health care and we see that now in the defaults on their subprime credit rate and sub prime auto because you need a car. to get to work you need

a car to get to the hospital and these are things that are not included in the basket so now the missing inflation number has been found it's in the collapse all of these loans sub prime and auto sub prime. consumer credit and so now it's going to be almost impossible for those out there like that any bush lauer's of the world and other fed chairman and other central bankers to say oh there's still inflation is don't pleasure no that's absolutely wrong here's the hard core rock solid evidence to prove you're wrong ok and we're going to go into the 2nd explanation he had his 1st explanation is possible greed by these debt pushers now he's saying it could be hidden inflation this is 2030 years have had donek adjustments that are now suddenly revealing themselves not through the actual numbers but the actual default rates and delinquency rates skyrocketing here the other factor in the subprime term may well be something else prices of goods and services they need that these subprime people need have risen sharply and outpace

their incomes and this can happen overnight this includes health care costs and it includes food costs an apartment rentals and cars have gotten a lot more expensive but cars and apartments and cell phones have gotten a lot better too and these quality improvements are added to the price think of the move over the years from a 4 speed automatic transmission to an 8 speed automatic or from 2 airbags to 10 airbags or from a basic cell phone to a smart phone i mean look at the i phone for example the i phone 11 it's infinitely better in terms of the quality of the video and then the government bureaucrats will say well we're going to donna just that yes sure the price is what $121300.00 and set of $800.00 that you could buy an i phone just so you know 5 years ago but we're going to say that it's still $800.00 because it's so much better so that's how they hit dominic leah just this and the fact that in fact people are paying a lot more. indeed despite their in. comes not going up as much we're starting to

see that they have less and less cash reserves less and less ability to withstand a surprise payment the government has an incentive to miss and under report inflation because of things like payments to social security are tied to inflation and they want to keep those payments as low as possible so they're incentivized to lowball the number they came up with this idea of he donek adjustments in a classic example is and take stake out of the basket of goods that we calculate inflation and put hamburger right that's a classic hit donek adjustment and so we say the prices have not gone up because we removed the stuff that goes up in price they include stuff like electronics built in asia under slave wages as having a lot of influence in the basket of prices because it's under really what it would cost to have somebody manufacture that with a real job here in america and you end up with a mis reported number that is used to justify low interest rates and artificially

low interest rates on one hand and number 2 they get the mainstream financial press to misreport this number of the financial times the wall street journal c n.b.c. they carry this false message fake news that there's no inflation john williams shadowstats is wait a minute if you were to calculate inflation today the way you did 20 years ago it's only an 8910 percent in america that's the truth but they don't do that anymore but here's the proof this default rate on these loans is the missing inflation this is what the rubber hits the road this is it all that has been hidden is being revealed right now for example the repo market it's hit in only a few select bankers know what's actually going on the fed the new york fed rescuing the system know which bank or banks are in trouble somebody is in trouble something's in trouble something's happening but we're not allowed to know it but it's being revealed this crisis is being revealed through the interventions here in the in the markets we're starting to. see the the the stress in the credit markets

the subprime credit markets which are which are the same as during the financial crisis when there were millions of jobs lost and therefore people couldn't make their payments here we allegedly have a great economy jobs are plentiful the unemployment rate is that all time low wages as the fed as even pointed out have not been rising so sharp but during these sort of times is when we see why the truth gets revealed is because if we're having a massive rise in inflation and of course for example rentals everybody knows that because of the disaster of 20082009 there is an all time low in terms of amount of americans who could afford their own homes so they rent blackstone and all these private equity own all the properties rental rates are up to 10 percent a year in some places and that is causing stress but the fed doesn't count that into c.p.i. the government doesn't count that into c.p.i. and said they do own or quibble interests and that's way low or something like one

percent or 2 percent a year rather than the double digits in many places and so you can see that for example wolfert to point out remember his background is an auto sales and stuff like that so he really focuses on that he said with used cars for example you can see that the most the feds the government's own data the c.p.i. for used cars has declined by 11 percent since 1905 but actually used car prices have actually soared since then there had donek adjustments for the quality improvements in these cars suggest that in fact is down by 11 percent if you count how much better this car is than no car you could buy in 1905 right there the default rates are not occurring because of an economic downturn as they did previously and that's understandable the default rates are happening now at record highs because of the hidden inflation dumpbin reported and of course any time the mainstream press will report on this they will characterize it as a product of greed which is foolish because in a capitalist free market capitalist society runs on greed right socialism runs on

bureaucracy capitalism runs on greed to him it can't. fault greed and any aspect to free market economy especially from banks and corporations that are imposing monopoly pricing as blackstone is doing in the rental market that's beyond greed that's a kleptocracy and then the problem as a club talker see blaming people are trying to get by day to day is greedy when the fact is intrinsically and empirically what we're seeing is the hit inflation numbers that the new york times as a report that no other mainstream media outlet reports because they're in the bag on the payroll they're in the jig is especially when is as i said that mouse knows higher hierarchy of needs you know nobody needs an iphone but they do need a house and rental units are going up they do need health care especially the law changed to you have to have these health care products those are going up by double digits a year every year for the last 567 years and maybe somebody dips into their reserves

and you know they could afford it the 1st year well technically you know just struggle to get by and we every year we keep on seeing these signs of like oh the average american only a $600.00 for an emergency now is $400.00 now it's $200.00 because they're eating into their own reserves to afford these basic necessities i saw a tweet from this financial analyst luke grown men he said just got my health care renewal no change in coverage no change in health care status knock on wood premiums up 20 percent this year to 1286 a month with 812500 dollars deductible this was $450.00 a month and 2014 with a lower deductible as he points out that's a 1000 percent annual inflation rate that he's suffered since 2014 and thus monopoly pricing trusts. in america running rampant beyond even during teddy roosevelt's era this is become a huge scourge which is destroying the economy in

a big way and the way to break that up into find. sector would be to do the exact opposite of what donald trump is suggesting don't trump us saying we should take rates into negative territory that that encourages the zombie banks and the kleptocracy to prey on americans even more so we're going to see more opiate deaths we're going to see more violence on the border we're going to see more social unrest because that's what negative interest rates do donald trump if you want to really do battle against the kleptocracy you need to raise the cost of financial terrorism by raising interest rates full stop what is being revealed is the bankruptcy of the situation so it's like that ernest hemingway quote from i guess as the sun also rises where they're talking about he went with the character went bankrupt slowly and then suddenly so as well for points out about this what's going on in the subprime market and that doesn't mean that these people don't have jobs somebody could be earning $200000.00

a year and they're subprime because of the health care cost or something like that cause them to miss a payment or to you know be unable to make one $100000.00 payment for their air helicopter that came in rescue them after you know a car accident or something so he says this goes increment by increment what might have worked last year suddenly doesn't work anymore this year these consumers with jobs that have been living from paycheck to paycheck suddenly find themselves confronted with a 20 percent increase in health care insurance premiums or a 10 percent increase in rent or both so it's increment by increment as you saw with that grossman he had to find $200.00 over $200.00 a month extra that's $2400.00 a year that you suddenly have to find to get the same exact product the same exact product your same exact health status and still it goes up by 2400 a year so speaking of hemingway your chums going to rerelease old man in the sea

going to call it make fishing great again all right we're taking a break when we come back much more coming your way. it's a let me. ask i would name will. take i could not predict that could not trouble getting low. can you love who you know nothing. to do make it a secret is don't want to come. to what they were all of the kook on the standards of that not as you hijacked angst. in the local think political entity. i knew of those damone.

much of this news for learning one to you from the. so would you hire a commodity tied to use into a good. joke. to me when i meet you house on the net. join me every thursday on the alex i'm unsure and i'll be speaking to get us to the world of politics sports business i'm show business i'll see you there. so what we've got to do is identify the threats that we have it's crazy on sunday shouldn't let it be an arms race is on offer and spearing dramatic development only personally i'm going to resist i don't see how that strategy will be successful

very critical time time to sit down and talk. israel media a reflection of reality. in a world transformed. what will make you feel safe from. the isolation full community. are you going the right way or are you being led. directly to. what is true what is faith. in the world corrupted you need to descend. to join us in the depths. or a maybe in the shallowness. welcome

back to the kaiser report imax keyser time now to turn to dave column he's a professor of organic chemistry at cornell university so he must be smart he's also a libertarian who writes an annual must read year in review in which he looks at the economic financial and cultural trends rocking society dave welcome back hence is a troll will be back this is less material for me all right awesome so dave last year at this time markets were tumbling this year jerome powerless handing out free money to the crybabies on wall street markets are at all time highs as the result i know you suck at math but can this fed q e not q

e sustain itself dave not forever if it does it'll be the 1st time anyone print their way to prosperity so. i don't know if i found it in your 10 years or so to say i know what it's going to be for what bank of america predicts quote quantitative failure that more monetary easing will never answer the real economy and only push more asset price bubbles so do you agree with that and what does that mean exactly dave the economy has certain needs. and i don't think taking credit even lower will cost them to build yet another factory or earn another house or buy another car and on top of that since everyone's pretty much up to their talents and debt. and they learn from the last crisis that kills so so that's that's else which is working anymore so i think we're probably being

conservative they're trying to get and will do some slowing. but i don't think it's going to work on a whole companies need more capital and those are started and when you look at the plumbing of wall street and the banking system. we noticed that in the repo market which is kind of one of the base layers of how the financial ponzi scheme a stacked there seems to be a stress going on there that they're seeing it looks like waste what we saw during the 2000 a crisis but a lot worse what do you make of the repo market and the current crisis happening there dave identify the serious you know battle of fear with the bar i'm trying to figure out what the republic is no way for people who haven't noticed this it turns out the best the market where banks lend to each other and and the rates fairly steady you know for 10 years now and it's smoothly. and all of a sudden the right plan for around 2 percent to 9 percent enough in

a heartbeat metaphor and you slice your party out this was looking at always how it was fat and then it happened again and so so there's some sort of. some sort of cardiac arrest going on inside the pipes of the bank i reached out to many many people trying to find out what this is a spent 2 hours talking grant williams on the phone on a saturday night we can quote none of us know what's going on there's about 20 different theories. there's something wrong inside the pipe is that frustrating as a professor at cornell university to have to admit that you know nothing my history goes back far no you guys actually know a little bit of it. i have wallowed in their grants for for 64 years now and have no intention of stopping so frustrating it all sounds very socratic you know you kind of open to the truth and you ask a lot of questions but all kidding aside here are your tweets stream on twitter is

full of interesting nuggets and insights and i curse people to follow that and let me continue on here so nobody knows nothing about the true state of central bank intervention we see nation states stockpiling gold and others like poland and slovak. are repatriating their gold so although it's hard to establish what's happening in the repo market because there's a lot of opacity there gold market is pretty straightforward people buy gold when they're worried about what's going on and these countries around the world are stockpiling gold they're repatriating gold what do you read into that if anything dave would go down for the better part of a decade now at lease term russia china. you know germany color all its gold back. i think holland just did them are i think there's back now and so on and as you said poland doubled its gold stash almost overnight so i think what will frustrate

people is that even a good play like buying gold during stressful times so i can apply a quick way it's going to take years but i think we go market is telling us that there is something going wrong. we would be the threat would system when the dollars are currency and that there are some evils forming in our future let me try to summarize the conversation we're having so far we we both agree that there are a lot of warning signs out there the financial plumbing since the falling apart people are panic buying gold but at the same time there's also record levels of complacency. you know you i think you know it's hard to make a call because this is been going on for much for 10 years we've been saying this buildup for 10 years it's really hard to you nobody wants to go out on a limb and say well there it is there is a problem it's all going to blow up in the next 6 months because that calls been wrong for 10 years people have been saying the bond market's going to blow up for

10 years and has it keeps going up etc you know there's a lot of complacency out there dave in the markets and in academic circles is it is it. it's a dangerous complacency sometimes as it's best not to do anything and to just sit back and sometimes it can be the worst thing in the world to be is to be complacent what do you think people should do should they just throw up just shrug their shoulders and just see what happens or should people be actively protecting themselves against what could be a pretty severe financial event well whatever you do there after you are they have to go and they can sweep way and and so if someone for example jumps out of that market. and then it keeps going up and it fries real crimes and they jump back in is the fisa purpose so they really have to come to terms with where the rat if they jump out of the markets weathers the gold market or an energy market or equity

market whatever you can find it's very hard to get back in i've been sitting on the sidelines on the equities for quite a long time. and i'm white knuckling it there's no chance of me and i'll go to my grave without buying equities unless the same some back to a decent valuation. but you have to wrap your brain around you can't just say oh max so me or dave told me this that i got to get out of x. what you just if you don't fully understand what that means you will fail. 5 sitting on a stock pile of cash and and stocks and i'm trying to make fine tune my part follow though that's one consideration around the world these issues that we're talking about the banks committing fraud they financial markets in disarray countries and large corporations hoarding individuals hoarding gold that's being is expressed or manifest and what we call the global insurrection against banker occupation hong

kong lebannon venezuela argentina the 20 countries that inflames protesting an extension of what we saw in occupy wall street the world's population is waking up to the fact that the central banks are out to kill them essentially and steal their money are those people wrong well you know we have a trade phrase markets are forward looking and i would have to say this if that phrase was true and then therefore the paradox where markets were so forward looking why wouldn't they know that there's a crash coming. but more to the point is the markets are looking past that or or they're not forward looking i think a some point we're going to have a real mess on our hands and i don't know when but it's a much scarier world to me now than say you know 20082000 was was it dot com bubble the world seemed like it was in great shape now it doesn't feel like it's in

great shape at all and the door is very polarized both politically within congress and between countries so i think it's unfair for turning them on i guess what folks who are in the business of fine tuning their parts all the as and trying to front run the fraud which is the primary occupation here in america for the billionaire class i guess what they're trying to figure out at what point is enough enough because i may have like michael bloomberg tripled my net worth thanks to fed bailouts but if the people with torches come and burn my house down and get sent to a good team and i might not be worth it in other words i will appoint the people the billionaires have stolen all the money at what point did they did they reconsider that maybe their health is of primary consideration more so than their wealth you listen to the so-called billionaires a lot of them are out there talking about how they feel really bad their own

billionaire son and you've got ray dal you know constantly and buffet you guys they all seem to be going to see why a they're well i don't actually blame the billionaires if the market there is the way to translate the markets is simply a free market response to the monetary policy so the guys i believe are central bankers and he says the billionaires tweak the central bankers i don't blame the millionaires but but if i'm a mom you know david einhorn great value or someone in and i'm watching the fat then i'll. ok best again we're going to make me cry all quiet now do you know while we get bill yeah i know i understand that and the question i guess would be that it's there like ok the fed's going to give us free money or silly not to take the free money but on the other hand there are riots and uprisings around the world that are becoming increasingly more violent so what point is right dahlia oh say

you know what i'm going to insist that the fed raised rates to raise the cost of financial terrorism because if i don't my own entire towns going to be burnt to the burnt to the ground i mean it's ok to front run the fed and and steal billions as dahlia does but at some point he's going to probably start to think more strategically wheeling about 20 seconds left the whole show or for another segment but. you know it in other words is see a suicide capitalist think so but there's no way to get from here to to normal without paying and so i think great dalí o.c.r. a risk even if it's a fad if it's a system or to try to correct we're going to correct for our value that i don't think are going to cut it off there i'll keep you over for another segment thanks for being on the kaiser report that's going to do with a subset of kaiser report with me max kaiser and stacy herbert like to thank our guest dave column if you'd like to get in touch tweet us the kaiser report it's all

next time by yelp. facebook and google started with a great idea and great ideals unfortunately it was also a very dark so. they are constructing a profile of you and that profile is real it's detailed and it never goes away turns out that google is manipulating your opinions. from the very 1st character that you type into the search bar it will always favor one dog food over another one comparative shopping service over another and one candidate over another they can suppress certain types of results diced on what they think you should be see if they have this kind of power then democracy is an illusion the free and fair election doesn't exist for the more growth we give them the sooner we are all pain

. as in the individual i think very much i have to do what i think is right i have defended to defend my values have to defend my principles and if i feel the state is not doing it according to what i think is the right thing them i have to stand up and say it's not good enough and if i as a humanitarian feel that the next to me is not respected and treated in a dignified way then i have to also stand up in this regard so yes we have to do it despite that it is maybe a very long term fight and we are not necessarily winning the.

you know world of big partners through a lot of things and conspiracy it's time to wake up to dig deeper to hit the stories that made stream media refuses to tell more than ever we need to be smarter we need to stop slamming the door on the back and shouting past each other it's time for critical thinking it's time to fight for the middle for the truth the time is now for watching closely watching the hawks.

russia german diplomats and a mere response to berlin amid a spot over a murder problem. also this hour russia could be put on the list of state sponsors of terrorism bill making its way through congress. plus a chinese restaurant in new york opened up by a white woman shuts down after just 8 months amid a backlash over cultural appropriation. once again this is a busy body of. white liberal preoccupation i think they have to police the world and stand up for all the minorities out there was. only did indulge in a few stereotypes.