and well a couple things so because it is proving itself to be a safe haven like goal so bitcoin a store of value and safe haven as we've been saying on this show for 10 years finally the markets coming around to that point of view the idea of big going as a medium of exchange a need to emphasize the transaction ability is false and that's why something like that quaint cash is a nonstarter however let's look at this other idea you talked about 2008 what happened in 2008 while the markets were constrained somewhat because of the plumbing of the way markets work the pipe that delivers cash or liquidity from the central bank to the primary dealers to wall street to commercial banks is somewhat well known in terms of the architecture involved there in 2008 with tim geithner and ben bernanke and all those president's men they decided to expand those pipes to be $23040.00 times bigger to accommodate much more money printing and we're

still seeing the benefit of that because they went ahead and printed almost $20.00 trillion fresh dollars that they swapped with banks for their junk and they put that on the balance sheet of the fed which town has many trillions of dollars worth of junk as do all central banks around the world the question is how fat are those pipes can they another 20 trillion and joan and i posit that they can so we're this is a got a long way to go and these wars only stoke the money printing which means much higher prices yes of course in the you know dropping bombs just waste money right there over $100000.00 each misao and that sends some of our inflation overseas but i think now that we're now officially in 2020 all he does is of course look at the stock market that's his entire gauge for all that he does so anything to keep the stock market up. that's why you're going to see now not only do we have that china

trade deals on no it's off yes it's on no it's off because of course it's he's trying to manipulate. the prices on the stock market send some sort of investment move here the same thing we see with this war it's going to be war is on worse off or is on or is off i think for the next few months leading up to the election you're going to see that sort of thing because you see this wall street rallies around war threat work khana me rages on because remember the markets fell right after the monday after the weekend assassination of solomon e. but then they soared towards the end of the day and that was because on that letter that was fake no it wasn't fake it's real no it's not we're not really leaving iraq remember that whole letter so you going to see more of that sort of stuff as we go on and it's all about this these pipes that you talk about encouraging the fed to print more money because remember trump is also not only looking at the stock

market but he's always looking at the fed and what shape jay powell is doing it he's not printing enough money and if he's not printing enough money for me i'm going to drop a bomb so he has to print more money exactly people always ask me about trump and i say it's a new york thing trump is a new york this and he looks at the global picture and he sees the challenge in the middle east he sees iran doing a dance with their neighbors and there's like you know what let's just cut to the chase it's just i got a guy in iraq and we're going to get more money printing right away because i want to make my yacht payment this weekend a wife thoughts around this is the new york way of doing things i said it when they 1st got elected it's like ave york on the white house and having a new york around the world i'm a new yorker. i got to tell you i love it it just go to times square and look at the. in there and how crazy it is and you'll see. who are going to make them you know new york. you go to forget about it right so this is trump and it's you know this is the way the world needs a new yorker to come. samit new yorker you know also i want to point out that in

2007 march of 2007 member general wesley clark said that the plan was that the u.s. is going to invade 7 countries in 5 years ending with iran so at that time though and i want to look at these charts this is lockheed martin and raytheon so they provide all the aerospace sort of weaponry that you know we go at war from air now we don't send in troops because the population be against it if too many soldiers die but not until we actually killed general could offie in 2011 october of 2011 right then is here you see 20 years of records not much going on in defense contractors until that point because that was one of the nations that general wesley clark had said after rock and and somalia and sudan and then it would be libya and ultimately iran would be the last one so i think people

investors started to price it in as we're actually going to go to iran so they've known this since then i believe that's my interpretation markets are discounting mechanisms and they tend to discount the future and so you see a stock chart like that and you can tell that yes the markets are starting to tell us that in iran and beijing or and then ran event there at war with iran is imminent so that was telegraphing this months in advance and the defense contractors there's no greater waste of money right there are no. more inefficient corporation and they're more inefficient at hollywood studios to give an idea how inefficient or lockheed or raytheon are and that's a brilliant if you want something out there that's sucking up half of every tax dollar collected in america half of the 3 trillion or so collected goes to defense contractors in america and if you want to print another $5610.00 trillion dollars let these guys loose and just let him go out there because it's going to require another 10 to 15 trillion of money printing i mean the stock market's got another.

percent to go on the upside despite their low ratings this is good news for m s n b c because remember you know many of their commentators on there are actually former defense officials former raytheon lockheed martin executives former intel cia f.b.i. all these are the people that are pushing war so this is good for them of course lockheed martin certainly i think also raytheon take out ads against these important shows pushing people you know to accept war is and this is always right back to world war 2 it is to paint pictures of pin ups on the bombs you know able was a threat to get out of gable exciter and now they put rachel maddow so you know i want to also say as you point out this money printing because there is the other war and that's the financial war the economic war the class war against the bottom 99.9 percent suffer the consequences of not only the war in the middle east there the soldiers that have to go over there but also the war. to maintain the

zombie banks and the zombie economy is the money printing because remember again this week we've had the fed doing more emergency repo nobody knows what's going on only a few in the war room know which banks or hedge funds or and titties are in trouble well the fed plans to consider permanent ways to keep money markets stable remember how we always like go into iraq it's going to be temporary afghanistan is going to be temporary yemen is going to be temporary and then we end up with these permanent bases how i don't know how many bases we have in iraq this this whole notion of like we're going to leave we're going to stay we're going to leave we're going to stay we're going to leave we're going to stay we're still in germany 60 something years later this is now what started as a temporary measure is a permanent measure but this is again a new york thing right there instead of saying the fuss about and say maybe we're going to raise rates re we're going to lower rates maybe we need to be prudent

maybe we need to think about wages maybe we think the economy maybe we have a job to do you know they're like you know we're just going to print money out in front of it we're going to open the spigot and walk away there's no policy there's no economics there are no economists we just open up full blast and walk away that's the way to do it you're right in the wall street salesman you just gotta get them to answer the phone or open the door you stick your foot in the door and say i'm just going to take a minute of your time if you don't like this vacuum cleaner i had to sell it to you you can just kick me out for you get in there and he schmooze them and you sell them on this and then it becomes permanent and that's what they're saying this is a permanent situation well the fact in cleaner cells one famously barges in sadar and then throws a bag of dirt on your floor yes and you know you need him to clean up this dirt and by the time he's cleaned up the dirt he has sold you a vacuum so the fed is saying we're going to dope a ton of money. in for night and into the economy it'll. create malinvestment it

will create defense contractors roaming the world bombing innocent civilians for in for giggles for fun just because they look their their fancy houses in the outskirts of washington d.c. and then once they've followed these places then there's the they don't those countries like iran or wherever they're like oh my god this is terrible let's do something back and they'll blow up a building here or they'll blow up a building there and then they you also say oh my god we're going to print more money and we got to say did we were right so it's a self-fulfilling prophecy of money printing and by the way australia is expendable you mentioned hollywood earlier and they say that d.c. is hollywood for ugly people so the fact that what we're seeing and the past. few days a week last week and we can have is team america you know that's why they could they they reflect each other l.a. and washington d.c. so you saying like you know you can't get this out we trashed your country we

destroyed babylon and you know what if we kicked us out you're good at the pay the billions of dollars that we spent trashing your country or we're going to destroy these art of your cultural artifacts well all of that was predicted 15 years ago under bush you know with team america so this is a reflection of each other they they act like they're so high and mighty in hollywood as ricky gervais's a point out and he said don't make political speeches because you have no right to because they are the same because most people in washington and in the liberal media elite the new york times washington post c.n.n. are informed almost entirely from south park the simpsons and bad hollywood b. movies that's their source of education that's their view of the world anderson cooper knows what he knows by watching south park and he comments about this nightly on c.n.n. is there any wonder then that we're just bombing people to get money printing so that we can get them to hit us back remember they have to hit us back the other

countries have to have both of us now so that we can justify what we just did if we're going to print more money to keep the stock market rolling that's a necessity of chorus very poor only here did you hear you can taper a ponzi so we had said this back before the fed tried to taper the ponzi and by raising interest rates i remember jay powell when he raised rates in 2018 and december caused the huge crash the markets fell by almost 20 percent and then he turned on the spigot again so this is they admit it and this article about the permanent facility another way the fed has been managing interest rates is by growing its bond portfolio again the central bank. says its purchases aren't economic stimulus and that its renewed purchases are meant to correct the excessive reduction of its balance sheet size again like i said we look for this going

forward remember where leaving iraq now we're staying in iraq the statement from the department of defense is like we don't expect iran to retaliate for this but that's why we're sending thousands of troops there because we expect them to like they say all in one they all do fed speak now right and who was the audience the trump sought when he droned this guy dead in iraq jay powell anyway we're going to take a break when we come back much more coming your way. time after time corporations repeat the same mantra sustainability. it's accelerating the transition to sustainable prize board sustainability spain overmanned a more equitable and sustainable well. they claim their production is completely

harmless. because. it does not the companies want us to feel good about buying their products while the damage is being done far away and this is 2nd eldest as he went on even as i am really in love. with the moon and news limited on time eamon and i'm stunting them in the best understood so going in. the world is driven by shaped by the broker so that there is. no dares thinks. we dare to ask.

for descriptions sound up or tell using even for the owners so how to choose the pet food industry is telling us what to feed our pets really more based on what they want to sell us than what's necessarily good for the pet turns out that food may not be as healthy as people believe and we have animals that have you know diabetes in our stratos they have auto immune disorders allergies we are actually creating these problems it's a huge epidemic of problems all of them i believe can be linked. very simple problem of diet and some dog owners so heartbreaking stories about their pets streets to large corporations are not very interested in proving or disproving the value of their food because they're already making it to 1000000000 dollars on it

and there's no reason to do that research. welcome back to the kaiser report imax kaiser time out of turn to michael pentode of bento port dot com michael welcome back thank you for having me max and happy new year to you we've got a lot to cover here michael gold rocketed on trump's war in the middle east other than the sort of black swans however what is the case for gold at the moment if any michael well it is really a goal never changes marriage is always a matter the direction of real interest rates and real interest rates are flowing and they're throwing at a faster rate as here to that to that the fact that our annual deficits are now a trillion dollars and going much higher there is a great time to buy gold oh by the way the dollar is also in

a topping phase those 3 conditions spell your better go all right fair enough let's move on how are you positioned at the moment in terms of defense stocks our defense secretary marc asperger's was previously a lobbyist for the likes of raytheon and lockheed martin your thoughts on this sector if we go full blown war much bigger than just the recent iraq incident. well i'd say i mean i've owned aerospace and defense stocks in the portfolio for the past 68 months in the portfolio it's a 10 percent position so this is not a new position for me at all they are not massively overpriced you know the entire stock market is massively overpriced and she's hard for me to imagine that we're going to cut back on defense spending when we could have the whole middle east into complete conflagration so i mean if you want to look at something that's recession proof and something that of course republicans love and even some democrats and the

deep state are enamored with completely it's defense spending so that's you know that's something you really should have as part of your portfolio but i want to just add this really quickly max you know. 2019 was a pretty good year for stocks yes and p. 500 was up about 28 percent but people seem to forget that the 4th quarter of 2000 . was a very bad quarter for stocks as a matter of fact it's been 500 lost about 20 percent in 2018 this 4th quarter of 2018 so why did stocks appreciate so much in 2800 it was all about the same thing it was all about central bank counterfeiting. the federal reserve. $500000000000.00 ahead for trillion dollars to its balance sheet from in september till today and they printed $57000000000.00 just

on january 2nd to make sure we had a nice kickoff for 2001 ok and then to money supply was growing at 3.6 percent in the beginning of last of 2 there's 18 it close less year growing at 7.6 percent year over year annualized rate so please don't mistake me or you as a permit here i don't want money here ok i am not constantly shortstops or what i am saying is that the foundation of this economy and the global economy us economy and the local county is faltering it is fracturing because it is predicated upon siskel and monetary madness. so i run stocks like this one run by management. i try to make money in all markets but are most concerned about preserving your principle and making sure that we can make money when the real prayers are right

it's a calculation really i mean they did the move to take out this iranian fella in iraq obviously they did the math and they figured that it would not upset the money printing in the us to paper over anything any problems they might have geo politically around the world and i don't see for see any problem arising short of a meteor striking planet earth that would stop the money printing and they have room to print another 2525 trillion so they have a long way to go on this runway and it's great to be cautious but america at this point is proving that the u.s. dollar can be printed in for an item and the rest the world has can't do a darn thing about it now michael what are your thoughts about the fed might do if the war escalates i've just stated that i believe that the matter what happens they're just going to have enough room to print money but former chairman bernanke

is recently quoted as saying we could go negative without causing harm so there you have it they could go negative well that's that's my point michael you differ. but i mean you know europe is this is not an experiment there's never been tried before you niecy be there be central bank has a negative interest rate and their banks are flow through it in a very short manner so i mean as a 0 percent or negative interest rate helped anybody in the world as voters or economic growth is concerned no i mean how can a bank made money when they're paying interest on their deposits and essentially it would end with the spread between their loans but then there's a because it is and their lives are basically the same thing there's no more. net interest margin and there's no. no in the bank you make money if they can't make money they don't lend so they keep their money at the central bank and pay them to do it because people are saturated situation i mean look at it i mean let's just

look at the corporate jets an area here in the united states and around the world let's just talk about the ice age for a 2nd you know the i.m.f. said that if we have a recession that is one half as bad. as what we had in 2840 percent of the entire 2 built world's corporate bond market would be own but owed by somebody could ration it's ok so corporations that don't have the cash flow to pay interest on their debt they have to borrow more debt just to service their debt 40 percent max what are we going to do in the next downturn that's why the federal reserve is going to be cutting rates in 2020 they only they only got to 2 and a half to adequately retreat to want to have their their panic about is. a more his inflation rate that they just can't get to 2 percent we have to be at your percent and way above it because we were below it for so many years and you know that's

when the mills this is going extinct back you know that's how one percent well of the wealth in this cut in this world now owns 50 percent of the of the well costs that's why the top one percent of the wealthiest people on this planet own 30 percent of the well and their wealth is growing at 5 times their income growth is 5 times that this 3 way tiles in the middle class size times faster and ways that because central banks around the world are in history in the middle class by bringing up energy prices why who are why inflating their housing costs and their education costs energy costs clothing costs well the riches of us and among us own stunts and bonds and real estate and become wealthier and wealthier and that is why i may seem like a kermit bear i'm not i'm just saying that economic structure this is what you say

to we point out that the sound asian underneath the global economy is predicated and based upon sand yeah but i wouldn't i was. i'm a perma realist i mean they mention the top 20 percent their wealth growing at 5 times what the middle 30 or 40 percent is growing at but you don't i mean i look at the top 20 percent and i see an extraordinarily rapacious and ugly group of craven psychopaths look they're willing to sacrifice australia on the altar of money printing right australia is the victim of central bank policy and ignorance of what that does to your ecology and what that does to your economy they're willing to throw australia onto the bonfire of their vanities what where will they end where will it stop it won't like all intel all the wealth is hold by 5 or

6 people and that's not going to stop nobody's going to stop it because none of these other countries are going to stop using the dollar because they're cowardly but let's move on you are invested in gold at the moment michael but in fact you're not a gold bug but what are your thoughts on the fan stocks facebook apple amazon that flicks and google ok well 1st of all i mean my portfolio we've been long russia we belong utilities long bonds long gold so you know we're not upset here about what's going on we're just trying to make money in all situations but i do think we're you know you mentioned bank so let's just look at how explicit the market is so at the peak of the media in the y2k 2000 as they bubble wilshere 5000 as a percentage of the economies of the wire the widest measure of stocks as a percentage of the actual underlying economy was 140 percent. so there is

a 152 percent of the underlying economy and i will submit to you that the underlying economy is artificially goosed by money that is free so the journey was much more the underlying economy was much more see back in the year 2000 and is in the year 2020 so so if you're with your with an advisor has warned spending ok were you want to throw markers or facebook app or nam's on google or you just long the s. and p. $500.00 because you just got a dollar cost average don't you know. you're in for a huge shock because what you're doing is you're only seeing the japanese nick and out in 1909 which is still down 40 percent 30 years hence and you're owning chinese shares the shanghai shares in 2007 which is still down 15 percent. from

2007 ok messenger julie you words out ticking and ethnic bubble in u.s. stocks and in you and us economic growth predicated upon free money which will absolutely implode when the corporate bond market implodes were the idiotic federal reserve achieves its 2 percent inflation target or whatever number because you know they measure inflation at 2 percent it's really closer to 8 right how would you like to buy gold the 250 dollars an ounce though i wasn't a 1000 well if you look at gaul versus the global debt situation it's cheaper today than it was at 250 in 2000 and you have never seeing gold under this cheap and probably 100 years relative to the global debt that's the other way to look at it but anyway michael thanks so much for being on the kaiser report and we'll see you soon in new york i hope i hope so too max a little stacy oh yeah definitely and that's going to do it for this edition of the

kaiser report with me max kaiser and stacy herbert want to thank our guest michael pent up pent up port that comics you want to catch us on twitter it's kaiser report until next time by. old was told to by z. but if he warned you press the button i do know who to shoot at the bottom or those g.'s and you'd be speaking to see me. as and about that time of when he died c.t.'s will be. in the news that he has or that in fact involve. a lot of people see sawing in as if i took the 2 kids out to both more schools tell me truth and she simple. resonating with them instead of.

the. less. ear in chief if you will that cabinet i thought they were days doing. a english stadium for people who simply do something new to manipulate in. reality has mandates of its own that go beyond what our wishes and preferences are . and our utopian visions maybe we're going to get a new deal but it may not be the green new deal that people are expecting will get the green new deal that we have we deserve rather think we are going to get a green new deal because the green you're dealing compas is things beyond just right infrastructure health care is in that new deal there are other elements if you go back 20 started in 2006 that we are going to get and that are popular in this country.

and this footage is unique because there's a tribal lands on normally off limits to the public eric's allowed in because he's this is personal don't. people here know him simply is don't to eric he's rich famous some always on the move saving yachts and flying in a croft that. he's considered one of the best neurosurgeons in brazil. that's happened i'm a song. allergies so since going to busy doing nothing is going to do the population not because it's going to people on the phone.

from. the headlines nazi iran admits it shot down ukrainian passenger jet on wednesday thinking it was a cruise missile the country's president says it is an unthinkable mistake iran's foreign minister has blamed washington's adventurism to the tensions that led to the timing of the u.s. secretary of state is grilled by reporters over the killing of iran's top general and the german chancellor hold full truth not only putin in moscow touching on issues from the iran crisis to energy supplies to europe also i am. a set ablaze in paris where riot police used tear gas as

a protest against pension reforms.