step with the increase in the nasdaq in the stock market because remember from mid september when the repo market turmoil erupted the fed started printing money and in the last 2 weeks of 2019 here we're in 20202020 but they're still printing the last 2 weeks of $21000.00 a printed $450000000000.00 their asset their balance sheet expanded by that so let's look at that fed balance sheet moved up to 4.166 trillion highest level in 14 months over for him to the 6000000000 over the last 4 months quote in no says is this q.e. this is nothing like it jerome powell had said october 8th 2019 you can see that it's a v. shaped recovery in the fed's balance sheet since you know the nasdaq as i said was up 40 percent nearly 40 percent so 60 percent of the gain and the nasdaq happens from that point let's revisit my ongoing theory which is that

you've got really low interest rates now for 10 years near 0 or in some cases negative and there are a few private equity folks that are taking all the stock off the board you know in remember a monopoly. the winner has all the real estate and everyone else becomes a right so this is the same thing nasdaq is just a proxy for monopoly and the players that are winning this are both the bank and park avenue and park place the 2 most valuable spots on the board game of monopoly so. that's this is exactly what i've been saying for a few years now if you keep printing trillions and trillions of dollars and you don't allow it to go into wages you cut them off you you you you you vilify the working person and you just give it to private equity speculators you're going to end up with this enormous bifurcation in the economy of extraordinarily wealthy plutocrats and kleptocrats. surf the surf class the losers the poor bulls i might

add that is also a hedge funds hedge funds play a big part in the repo market that's where they go for funding and then 10 x. leverage up into the markets so that's important because of course as i mentioned here's the fed's balance sheets have been declining it was down 8 percent on the year at one point for the 1st 3 quarters of 2019 it ended the year up 2 percent the fed's balance sheet so those a huge turnaround that's the v. shaped recovery so i'll match that to this tweet here feynman market cap of fresh all time high 5.249 trillion which is almost equal to the combined g.d.p. of france and u.k. as big tech keeps rolling fame in our facebook apple netflix and google so if you look at those chart that's the surge in the fed's balance sheet they're printing money and that's the surge in the famine shares at their so it's they're

going lockstep so to put this in perspective though on a global basis there was never any diminishment of money printing so the fed was down maybe 678 percent of one point over year over year the trend was extraordinarily expanse of maybe a couple of quarters down but globally it's never gone down any at any months the it's never gone down so the global printing by all the globe's major central banks has gone on on this hyperbolic increase which has led to a 38 year bond market rally which is unprecedented and unreasonable and is dangerous for any economy to have that kind of misallocation and the trickles down to the bank stocks in the franc stocks are momentum stocks the you know this discipline overvalued group 5 years ago 4 years ago 3 years ago 2 years ago one year ago one month ago last. week italy and overvalued group in 6 months i can't

get more overvalued because the ratio of at nasdaq to s. and p. 500 was almost twice as high in 2000 during the dot com bubble so those valuations can continue to rise so don't fight the fed and don't fight warren buffett i might add because warren buffett might be even bigger than the fed remember he poured into apple early in 2019 well this is a tweet about the biggest largest company in the world well i guess i am co saudi aramco is now the biggest but apple is the biggest corporation in america in case you missed that apple is up over 80 percent and $21000.00 is best year in a decade largest traded company added $530000000000.00 in market value this year more than the market cap of all 5 comparables in s. and p. 500 twice the market value of intel so that's the price rise in apple and $21000.00 and of course right now the big loser of that well as carl icahn you know

carl icahn was sold to warren buffet at around $14150.00 a share sound close to $300.00 so it's a double since carl icahn and he sold it because he thought it was overvalued the market was overvalued he told everyone to get out of the market he stopped managing private money he only manages like this huge family office fun so he's been dead wrong i mean there's a multi-billionaire there's generally been right going back to the eighty's he was part of the the mike milken crowd of the 1980 s. who were given extraordinarily huge tax breaks and free money as you had some l. crisis and then the drexel burnham crisis but he's been dead wrong you know with apple computer it started off at a very low valuation remember back in the late ninety's when it was less than $10.00 a share adjusted for splits michael dell a dell computer recommended that steve jobs quit the computer business in that he was no good at it. and nobody wanted to buy the stock under $20.00 now everybody

wants to buy the stock at $1.00 trillion dollars valuation you know it's it's a contrarian ism versus the blindingly obvious you know warren buffett pursues the blindingly obvious every a lot of people are like hedge funds are contrary and tend to underperform even a simple vanguard type s. and p. tracking fund well we're going to look at a chart of apple going back 39 years this is it right here is the dot com bubble little tiny blip down there this is the 2008 crash and as you see it's gone hyperbolic since then the fed money printing has done well for them i guess also their powerful state department introducing intellectual property laws and things like that around the world has done well but it's hard to see on this chart but it's definitely going parabolic this year based on that long term 39 year chart

right you know going back to the late ninety's and early 2000 apple was a really hated company because it had lost a lot of people a lot of money after the heyday gone public and then steve jobs left the company if you recall in the stock was a underperformer and people really hated it so as a result you know apple just now on a price earnings multiple is just now becoming closer to the market average on a p.c. ratio it's not overextended like back in the dot com days you have these tech companies are nasdaq are netflix for example or the other frank stocks are trading at 70810120 times earnings or $200.00 times earnings astronomical price earnings multiple the case of apple they're just trading at a market multiple i believe last i checked it's somewhere around 20 up from you know 2 years ago it was 10 or 12 which is extraordinary so you mentioned carl icahn and you mentioned that he had said it was overvalued and of course a lot of these things are overvalued. based on historical metrics but history never

had negative interest rates they never had such activist central banks and the central banks are pretty new and on a global situation the united states got ours in 1913 and of course bank of england has been around for a while but we were on everybody was on a gold standard back then so we haven't had that sort of interim interventionist central bank policy as we see now we're going to get into another chart about that another statement about central banks but of course warren buffett also he does have a metric the one metric he looks at to determine whether or not markets are in a bubble as he said if market cap equals 100 percent of g.d.p. that's when he said he decides to sell and that has happened in the last month of $21000.00 that happened i think it started out december at like 85 percent and that it was like surge so hard into december into the end of december that it hit 100

percent so here's a tweet from karl can tell a fed's balance sheet continues its epic rise up by an average of $101500000000.00 per month since september compared to $80000000000.00 per month during q e 3 quote it's hard not to imagine this influence on stock prices as long as interest rates are near 0 it doesn't matter could be 2030 trillion dollars on the balance sheet here's a thought experiment and a bit of a prediction for 2020 going back to saudi aramco around as it went public just recently at a market valuation and excess of $1.00 trillion dollars i think the one point was toward 2 trillion dollars i think that we're going to see them make a hostile buy of a company maybe facebook for example and it could be the 1st trillion dollar hostile raid in history because they've got the balance sheet now if you've got a 2 trillion dollars balance sheet that means you've got you know the ability to borrow another trillion so you've got a 3 trillion dollar war chest. if you go after an apple or even

a berkshire hathaway of 5 or $600000000000.00 so i work inside go by berkshire hathaway just as a hostile rate and then they own a huge portion of the whole global market the american market why not they've got the balance sheet now they want to diversify away from oil and gas and i think we're going to see a move like that the next 6 to 9 months well i do believe that we could see a doubling like we did in the end of the parabolic move because member alan greenspan had warned that the markets were displaying irrational exuberance he said that in 97 we continue on for 2 more years 1909 as a going to be 85 percent we only went up 40 percent and $21000.00 if this is exuberance and you know the retail investor wasn't really participating in $29.00 everybody hated it everybody was they dissing even big names like carl icahn everybody was out so this could be the year that it's in and that ties to this final headline nobel laureate economist praises truong for stock market rally he creates animal spirits nobel laureate for economics robert shiller sees president

donald trump as the primary cause of wall street's recent strength because he stoking the markets animal spirits schiller a woman nobel prize in 2013 chillers newly found praise for trump is a huge turnaround from the point of view he held back in january of 2018 when he said in an interview he would give trump a grade of one or 2 out of 10 when it comes to economic policy he said he didn't vote for trump in 2016 but he thinks he'll win in 2020 right schiller agrees with me and i've said for 3 years now that a trump instills confidence in people the american economy is 70 percent consumer and you have that's a key component of barack obama never get no one gave anyone any confidence to do anything everyone looked at barack obama and his presidency and his policies and they were like no i think i'll wait for somebody like a trump ok i'm going. take

a break and when we come back much more coming you know what. so what we've got to do is identify the threats that we have it's crazy confrontation let it be an arms race is on the off and spearing dramatic development the only posts really i'm going to resist i don't see how that strategy will be successful very critical time time to sit down and talk. good food descriptions sound up the even for the owners so how to choose his pet food industry is telling us what to feed our pets really more based on what they want to sell us then was necessarily good for the pet. food may not be associated

as people believe we have animals that have you know diabetes in arthritis they have auto immune disorders they've got allergies we are actually creating these problems and it's a huge epidemic of problems all of them i believe can be linked to very simple problem of diet and some dog owners so heartbreaking stories about their pets streets the larger corporations are not very interested in proving or disproving the value of their food because they're already making it a $1000000000.00 on it and there's no reason to do that research. and we're going to fulfill the repeated purposes of politics to the people i promise to be you know we've all pots. pretty rough.

now you want to work correct that. no. be cut cut cut. cut cut cut cut cut link up. or.

a. welcome back to the kaiser report time out of turn to mitch stein author of planet ponzi dot com bitch welcome back great to be here for us in england so let's get into this you know the markets are defying all who were looking for a pullback these last 2 or 3 years we seem to be heading to 30000 on the dow what's going on. i'll tell you max i'm pretty i'm pretty surprised actually you know we called it wrong this year i'm 1st to admit it you know the nasdaq is up close to 40

percent its year what we have an all time highs for the decade we've got stocks bonds property credit markets big debt markets corporate debt stock buybacks c.e.o. lows valuations we are all time highs on central bank g.d.p. elation and i think if that's the story we also have the new lows which are interest rates at historic 600 year lows trust in our government trust in big tech space book twitter google politicians media the government the f.b.i. n.s.a. congress all new lows so the next decade going to be a ripper we're going to see the next decade massive amounts of opportunity that will make the 40 percent gain nasdaq look small i think we're talking about a big correction that we'll see in the distortions that the central banks that put forward for the last 10 years during the next 10 years 2020 is going to be a real key guinea of the next decade and

a turnaround for where markets are going going on central bank magic in the i guess you'd have to make the comparison to 1990 my i was very involved in the dot com era at that time you were managing money you observed it 1st hand it is it similar to 1999 yeah the nasdaq was up 80 something percent that air. greenspan had in 1906 and warned of irrational exuberance and then went on to catapult higher yeah the i.p.o.'s that were being launched at a 50 to 60 percent 1st day pop if you remember that was the big thing i remember when i was at the hollywood stock exchange we were about to go public a barrister and barbara streisand was calling me asking to get stock in the i.p.o. you know things are crazy is it similar to 99 which i mean it's similar to 1999

only 199-1929 max i think the valuations are in the stratosphere. on the metric that you know university uses. all time historic highs only have to have in 1990 are so many $1000000000.00. or. and. dollar unicorns the. dollar. amount of the files that. amazon. and apple are the valuations that are a little bit ridiculous right now but they keep or not they will not mean it is free for the sad fact that. the european central bank. has been buying it. and is buying them hand over fist the swiss national bank

and over for me it's just a matter of time before the fed starts buying equity for the i think that it will see more clearly i think they have no other chance but to think for the markets they've proven. markets. in the stratosphere the problem is we're doesn't know what it. is it's a problem as i've said for a couple hours it's impossible that it would stop a bubble and you can tell we're going to probably have. $13000000000.00 and we're still yet to make a profit. and have a. seat at an all time high making the valuation of test i think the. auto companies in the world. moving cars and. it's not over the outs. and it is finding out with their move.

the big technology in those vehicles is the battles. and frankly needs rare earth metals so those metals not come from china i doubt china is going to be very helpful in for moti american companies over their own movies. force everybody is getting into the game with the east now so that's what i think will come. in school. in russia. and i am. for to signal to the maps the best are within the test drive my test which is not in the best aramark in this case it was the millennial so far on their robin-hood stock app that were right they've been buying tesla for the last 3 or 4 years and the stock just man a new all time high the professionals were shorting it and now there's a shared shorts quasar mascot kind of a thought exercise there because in an era now where the rumor is that black rock

and blackstone are going to merge to create a multi-trillion dollar financial buy a myth and have got a ramp go saudi aramco went public a stab in a $1.00 trillion dollar valuation my as i thought exercise is it possible that around cow could do a hostile raid of a company like a facebook and add a trillion dollar takeout well we say potentially the 1st trillion dollar deal as a hostile deal that is that a possibility you know if they want to diversify why not met each well i think. trade as you saw the stock drop this is you know i was very skeptical about the valuation when i poor as i was very skeptical about newark's valuation at 57. 7000000000 and i think i said it time last january's that work was a ponzi scheme and we were turned out to be on those guys or in and out well i

don't know why it took down soft and easy and fun going back to. i don't think that's an apple that i think we'll see another oil company. him out in such a while valuation and it. down to about $100000000000.00. after or something and i think i think ridiculous especially with the lack of transparency you know ram financial. i think people are chasing. all these. negative. trillion dollars in negative debt now. you know could never guarantee what i feel. is the body is negative you want

and hope that the maturity in those months now we're going to change with the pension fund is we should not allowed to buy an instrument a lot will last for the answer and this is just exploitation and it's it's win from saver for savers to the bank we're going to fund many of its own and you know this is. the next ok oh it's going to blow. on and be all over the world civil unless we sense that the reduced wealth in the central bank actions were superheated by lowering interest rates and hundreds of trillions of dollars into. its credit which is now that's a bad day losing money on a negative interest rate bond of course you can still use them for collateral and f. all the central banks are captured as they are and you can invest in

a carry trade where you're going to end up with a positive carry because you essentially have own all the central banks and the central banks are private corporations are not government institutions you know they can see how people would be abusing that market now mitt you are right however about the fact that you can taper a ponzi scheme as the fed tried it and then the fed lost trying to do it after cutting its balance sheet by 8 percent for the 1st 3 quarters the fed ended up in the air up 2 percent on the on the balance sheet meaning the fed is that when the money printing spray not that the rest of the world ever stop printing money but the fed actually put some lip service to tapering upon say for a few months they failed they went right back in the money printing so i would assume your thought there is that that's only going to continue i think what we're going to look at is why are interest rates and the millennial generation are trading now. all that. trading that they don't understand is a function of interest rates.

and traders where tripoli which we. are totally distorted in every possible ask. if. jacket. now. that's not hundreds of dollars of negative debt it's that's. not. the reason why interest rates around the world are its lows because if they go up. will still be able to service it so that interest will be hungry to find a new tool to suki the phone once you know.

what yeah i get it i get that whole scenario which we've been talking about for 4 or 5 years and meanwhile the deals get keep getting bigger and bigger so if you have a half a trillion or one trillion dollar hostile raid that'll perpetuate this ponzi scheme and less like what he out there to be investing in and the scarcity value of equity goes up because all of it's becoming private equity. and i think we're just about out of time but misfires stein we're going to keep you over for a 2nd segment because we love to pick your brain and find out what your insights are thanks for being on the cars report. not to fall into the excess and that's going to do it for this edition of kaiser report with me max kaiser and stacey everett like to thank our guest mitch firesign a plan apology dot com want to reach us on twitter it's kaiser report until next time by.

the by the but if he when you post the budget and i do the dishes at the bottom or the g.'s and you speech and you see me we need to you. about that come up and when you die g.p.s. will be home and he knew that he dies with an infantry ball. a lot of people see slowing as it fights about to try to both harden. but as you get instant. sheriff as if archer. is very. biased. here in chief if you will that cabinet 5 days doing it.

in english 38 for people who simply do so in new. england in total. time after time corporations repeat the same mantra sustainability very important. transition to sustainable transport sustainability stay number man on a more equitable and sustainable world. they claim their production is completely hamas. because. companies want us to feel good about buying their products while the damage is being done far away and this is something this must be done to anyone and i mean look. this is the mills i mean listen we didn't do nieminen and. understood so when in.

israel media a reflection of reality. in a world transformed. what will make you feel safe. high salacious community. are you going the right way or are you being led so. what is truth what is faith. in the world corrupted you need to descend. to join us in the depths. maybe in the shallows. that was. nothing new to.

iran classifies the u.s. armed forces other terrorist organization in response to the killing of tehran's top commander that as huge crowds gathered for the funeral of kasim soleimani meanwhile u.s. house speaker nancy pelosi announces a resolution because of donald trump's ability to attack a broad even though similar restriction was removed from the defense bill passed by congress last month. putin meets the syrian president in damascus in the middle east braces for further instability. on the new gangster film the gentleman farts a debate over racism and censorship give us the use. we can tell you some of the most. disgusting racist lot.