is that it is moral hazard they encourage so imagine when you were a little child and every time you did something wrong instead of getting sent to your bedroom and bouncing your bed across the room or anything like that you know you were given a ice cream cone or you were given some sort of increase in your allowance every time you did something wrong every time you accidently burned down the house or something like that you were rewarded for it rather than punished and that's what you have now is like any time there's bad news 1st of course you know gold spikes market selloff for literally a minute or 2 and then they soar quickly when they realize oh wait what am i doing i'm thinking like the olden days before alan greenspan before there was the fed fighting the investor speculator class so now they they whatever every time there's bad news is always when markets soar the most right well don't forget

eric holder tim geithner remember in 2008 they came out with the holder doctrine so about moral hazard institutionalized moral hazard they said every time you banks commit fraud every time jamie diamond commit fraud we are going to cut those laws out of the books we're going to eliminate laws against financial fraud whenever you commit fraud oh by the way of jamie diamond by citibank or travels corp violates classical oh well we'll just get rid of glass steagall to accommodate jamie dimon because that's the eric holder doctrine that's the jimmy geithner doctor and that's the ben bernanke you doctor and that's the doctor that's a jay powell doctrine is forget all rule of law for people with a lot of cash from the food. in terms of fighting the fed and this war with the fed and this war with economics and business cycles for example. we're in this sort of benign totalitarianism is where they don't have to lock up short sellers for example remember during the financial crisis it always emerged

that emerged in europe and the u.k. and the united states were going to ban short selling because the short sellers i.e. those taking a bet against the markets are the ones causing this well they don't even have to do that anymore they don't have to threaten to arrest anybody or ban anything or throw people in prison they do it themselves because they've been trained through years of abuse and that is nobody is short short sales and the s.p.d. r. s. and p. 500 e.t.f. trust known by its sticker s.p.y. as a percentage of shares outstanding fell to 1 point one percent last tuesday that's the lowest level since january 28th seen before the event known as volley get and sent stocks swooning that's the collapse in short interest so things are heating up we have these trade wars we have these hot wars in the middle east and of course people know that's when the fed is going to punch you hard if you dare do anything like sell off stocks or buy gold or anything that will look jeopardize their their

their one indicator that they care about that's their red line is the stock market price right where we got rid of the top tick rule which dramatically altered the whole short selling industry and the point is not that our stocks expensive are short sellers and are this is the stock trading at all time highs that is in consequential the point as we've been saying for ears that is that everything's being taken private with all of the free money given to them from the fed and we're entering neo feudalism. feudalism. feudalism that's the period that we're entering in act 2 of kaiser report the musical coming to broadway soon it will all be about neil feudalism how you start off with the middle class under eisenhower after world war 2 and. build yourselves all kinds of homes out there on the suburbs and you got a job and one guy the host going to go make a living for the whole family and you go go to ivy league school and you've made

more than your father's because it's. feudalism. feudalism thanks you've destroyed america right oh i'm just going to quickly look at one chart and then move on to the next this is just from 0 hedge and an article actually about morgan stanley where they're saying don't fight the fed it's not worth it central banks liquidity surge could push s. and p. 500 to 3500 morgan stanley had actually predicted the s. and p. 500 would go to 30 to 50 by the end of 2020 it went there in the 1st week or 2 of 2020 so that blew it away and there's a direct correlation and each time the markets were down like that little blurb there back in november of 21000 well it's because the fed's balance sheet shrank a little bit that week so those were people you know the fed controls what happens right now even morgan stanley is saying that who has been the beneficiary of the largest of the federal reserve i may add back in 2008 but again here's another sign

that. people have been turned into dough sile sort of totalitarian state citizens like you see that in north korea they don't know how to question their leader because they don't know of anything else here they are trained to respond to the fed and what is happening the explosion and passive index funds so every if you're not going to fight the fed might not just join it just dump your money and to a passive index don't become a value investor don't be an active investor don't look for things like earnings and growth potential that's ridiculous right don't be trying to be like warren buffett any more even he's like sitting on over 125000000000 in cash because he still has his old notion of like looking for value and he doesn't find any so he sits there in cash and the meantime the ordinary investor is pouring into index funds index funds breakthrough 10 trillion dollars in assets mark amid active

exodus relentless rise of passive investing has transformed the business of managing assets keep in mind in america life expectancy is down and for mortality is up and the spread between the richest and poorest is widening like you'd expect in the middle ages during feudal times look in san francisco in los angeles you can see what's happening right now particularly in san francisco you've got a huge population the halmos people who are developing medieval diseases that are getting typhus and other types of diseases diseases and clipping coupons a plague which i haven't seen in hundreds of years so i would predict in the next year or so tim cook over there at apple and others will start erecting these huge walls and outside of the wall be a huge moat and that'll be they'll erect castles they'll be genuine castles in san francisco los angeles in in new york surrounded by moats filled alligators and sharpshooters and guns and all the this enfranchise surfs out there that got messed

over by the fed because they engineer this deal for. we'll be out in the no man's land fighting for rats food cooking rats up and possums trying to survive i say go along alligators now get it was cheap because there's going to be huge demand for it but again you know this this cycle of like what came 1st the chicken or the fed and it's there in a. mutually assured destruction at this point so people are pouring money into these passive index funds are just passive speculators and not investors because they don't even know what they're investing in they're just like throwing money at an index they're not like you know warren buffett so there is no discipline in the markets them everybody is just following the fed they're expecting the fed to keep things going up their. companies like something like 40 percent of the companies in the s. and p. 500 are essentially zombies i saw

a data point out this past week where 40 only 43 percent only 43 percent of companies in the s. and p. $500.00 even reported any r. and d. costs at all so they're not even research and develop and there's no investment in the future there's no cap ex this is tolls on b. and just. you know fighting alongside the fed but at the end of the day ultimately one point you know we might realize it's like you know that trojan horse this entire economy is a trojan horse in order to speak in a sensually a command and control system which will disintegrate rapidly oh yeah you know passive investing is like the last choppers leaving saigon right you know the u.s. lost the war in vietnam you had those choppers in saigon leaving and people clinging to the rails like who would assume the camera loses all 4 of the do or they're going to kill me. right so investing in passive in fast passive phones are like the hyper inflation that's happening in health care education and every aspect

of the economy that is not imported from slave wages in china as ricky gervais's pointed out is going up 102030 percent a year it's completely obliterating the middle class and they're saying i want to be going to passive investing fund so that i don't go build up by the camera rouge take me in the shop wrote a song i go on right i've seen this in the seventy's i lived during the seventy's. boomer. boomer and the millennial and the jenna x. sorry but nothing left for you might want to add i think you mean the viet cong rather than keep. close enough going you know and then or in cambodia the cameras right then fields right in right next door to same you know a group of angry disenfranchised yeah kissinger financer kissinger obliterated sort of situation but finally i want to quickly look at this chart here global trade growth is inversely related to the overall strength of the dollar which is

a remarkable again there are no cycles there's only the fed don't fight the fed because this is what the fed does you trade goes up when the dollar is down trade goes down when the dollar is up it's that simple and the fed and our policies control a lot of the dollar is a proxy for global stupidity how why china. russia europe germany france argentina why they own dollars and buy dollars as a proxy for stability. i bet going. end goal. we're going to take a break when we come back much more coming your way. of telling. him.

to. look back. in a world of big partisan newton's laws 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 bats 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.

descriptions sound appetising even for the owners so how to choose the pet food industry is telling us what to feed our pets more based on what they want to sell us then was necessarily good for the pet turns out you may not be yourself. the best people believe we have animals that have you know diabetes in arthritis they have auto immune disorders they cut allergies we are actually creating these problems is a huge of a demick of problems in all of them i believe can be linked to fairy simple problem of diet and some dog orders 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 a $1000000000.00 on it and there's no reason to do that research.

welcome back to the report imax kaiser time now to go to crack hampikian have the 2 f. models report dot com check out the website for some 2020 action predictions for a catholic cetera it's actually crack welcome back max it's always a pleasure happy new year let's talk gold the drumbeat so of war with iran because golda skyrocket above $1600.00 briefly before peace was declared sending gold back around $1550.00 how important technically is this $1550.00 price craig it's a very important level for the after one school peaked out in 2000 lebanon came down and went sideways for about a year and a half $1550.00 on a weekly basis was very important support for about 19 months and it was 50 that was wiped out on friday april 12th 2013 and monday april 15th 2013 down to

her box wiped out level out below it ever sense what's most 7 years now this is the 2nd week in a row we've closed above that level technically that's important but i want to stress though because there was a lot of talk here once the war stuff kind of simmer down the gold had only been going up as like a safe haven that's not true at all gold was up 3 percent from december 20th to january the 2nd before the stolen money assassination raid attack whatever so it was a 8 and a half percent from december night through january 22nd so metals were moving for good reason they were looking ahead to all the central bank activity and everything else is coming up this year it wasn't just a reaction to see a play that's important for people to remember from reading that billionaires and multi-millionaires are hoarding gold in record amounts are building safe bunkers in their basements in the hamptons and they're filling it with gold bricks this is

happening. all over the world people are sensing that the safehaven play of gold is upon us and that the days of the dollar could be coming to a close what about the fundamentals of called krag what about something other than just technicals driving the price higher what do you say on the supply demand the more the fundamental side that's the dichotomy max that seems to get wider every year you mention high net worth individuals goldman had a big report about that back in december all the demand for gold getting taken off grid out of the banks hands let me lay this what on 2018 the global central banks bought 651 metric tons of gold it was a most since 1989 the year after the london globe fail and then in 2019 it appears they topped that $670.00 metric tons of physical metal it taken out of the banks hands well the same time the way the stuff is priced through futures trading the

open interest on the comix went up by over 300000 contracts which means the banks created about a 1000 metric tons of paper goal so there is this widening gap between actual physical demand and then this paper supply if that can stretch the system far enough things could really get interesting but for now it presents you know an interesting to say opportunity. you understand how that works to maybe make some interesting forecast and prepare for you net kind of end game that maybe those elites are talking about against other major currencies gold already making new all time highs just about every other currency out there in the world gold making new all time highs but not against the dollar and the fall money you know incident of of recent time has proven that the us is the sole had germany in the world that it can do pretty much anything it wants no other country has much in terms of recourse

and as long as the empire is intact then the empire can act unilaterally blow people out of the sky what not without any repercussions i don't see and in response the rest of the world buys dollars you know that it's like that old saying the beatings will continue until morale improves well now the america says to the world our bombings will continue until you stop buying the dollar and they don't get the message they keep buying dollars so i think on the macro scale i don't see a big change there the rest the world cowers at the foot of america and that'll keep the price of gold from hitting new all time highs against the dollar any time soon i think this year maximum we already had the best gains since 2010 encounter your 200-1000 which you know every time we we met and talked in 200-1000 that's what we forecast we thought that to be a good year i did you know i wouldn't expect gold to skyrocket this year absent you know some major crisis but if we keep moving higher it at once or both $1551650.00

becomes a dollar target maybe even $750.00 it is important otoh if you did that gold has made a new all time highs in almost every other major currency so in a sense you kind of feel like the dollar is eventually going to get there too but if gold keeps turning higher and silver keeps trending higher i think it opens up the door to some money making some feel good making possibilities if you're. actually the oddest of all 'd places that's mining shares which is just i mean a terrible place to have your money for the last 6 or 7 years you want to trade make some cash mining shares might be the place to be because if the global asset managers you know the institutions the hedge funds even the central banks like the swiss national bank if they start looking at the sector seeing the gains in the metals seeing the shares in their indices start to break out and be a lot of money flowing through a very small hospital into

a limited amount of investment opportunities and so i there's probably a better opportunity make gains in 2020 and actually in the mining shares and there is in the axis of all the problem with gold mining is that it doesn't scale very well when you compare to what you can get in alphabet the parent company google or apple or tesla even or facebook you know they just add a couple of servers and there's another $5000000.00 customers and the cost of scaling is miniscule and they're welded into the u.s. pentagon as is the case with amazon they have a guaranteed contract pipe flow due to all the work they do for the pentagon and those the companies are getting bigger and bigger you know becoming trillion dollar companies to do a goldmine if got to hire workers you gotta buy huge excavating machines the got to dig you got to refine you've got a whole lot of mercury and acid in there to get it out you know the margins in gold

mining are terrible when it compared to the weightless digital economy that we're in now but i mean i understand that they are a leveraged play on gold but the money flow is going to people like elon musk you know elon musk even though the company is that $80000000000.00 or so twice is bigger than the 2 other biggest car companies in america combined it's not it's not that big when it apparent apple right apple's 1.3 trillion. dollars and elon musk's company is only worth reich 80 or 90000000000 so he's got a long way to go to catch up to apple and why not he's reinventing the globe just like steve jobs dead well that's all true max no doubt about it but i i think there's opportunity in those shares though as people diversify i mean the global asset allocation of the sector the precious metal sector is less than one percent i mean if it goes to 2 percent which is still under the historical norm that's a doubling of the amount of cash and so you look at ata what what does

a net an asset manager look like something look at something like nuance big big miner their earnings are growing $34.00 times versus year over year and they pay a 2.4 percent dividend and that beats the heck out of the 10 year treasury so i you know i'm not you know if the market keeps going up the central banks keep flexing this cash i mean what the the fed increase their balance sheet all the way back up over 4 trillion in the last quarter means that cash going to float around the planet i'm sure apple and tesla and the rest will keep going up but i think offer diversification sake we could see a rush of cash into the mining sector and if the g. actually goes from 30 to 50 that's pretty good move you know so anyway more of the story is i think the fed keeps kryten cash the e.c.b. keep printing cash they're monetizing the debt direct around almost directly through one extra step there directly monetizing the debt there's no other way they're going to have money cash to fund the government deficits and all the everything else that goes with it so i think that continues this year i think the

metals continue trending higher and anybody waiting for like some major debt to buy is going to be just right you mentioned g.d. x. there just to point out that t.d. x. is an exchange traded fund it covers a group of mining stocks g.d. x.j. is a similar except it has more of the junior mining stocks and then there's one with the ticker symbol s l which covers the. over mining sector so these are all ways for people to diversify into the mining sector instead of trying to pick individual winners in the mining sector you might have the grapes and greatest. play on gold and silver ever but if you're in the wrong company and that company runs into trouble you have missed the bull market so the the best way to do it is to play the play in the e.t.f. market i would agree with you on on that and roughly one percent of the globe's assets there's about $100.00 trillion dollars of investable assets around the world

in family offices and high net worth individuals and for a one k. plans and charles schwab accounts about one percent of that money is in gold believe it last i checked is that currently the situation and all we have to see is that to move to $2.00 or 3 percent crag and gold would very quickly get to $2500.00 an ounce and u.s. dollars greg that's just it max i mean is it you any good any oranges you know you name it if you get a vast amount of increasing amount of money chasing a finite amount of goods the price goes up i mean that's econ $1.00 of the one so i just you know again yes a trillion dollars you go from one percent to 2 percent that's a trillion dollars coming into the sector in half of that $500000000000.00 would basically have the entire sector of the whole g x o g x. g.l.d. i mean all that stuff so that's what i expect i think we get a point this year once it becomes clear that the shares are breaking out that

they're just a big rush of cash into the sector people just looking for precious metal in all their forms as a hedge as whatever they get makes for a big year so i don't i just i think people need to recognize what happened last week understand that the metals are already moving for a whole different set of circumstances before the geopolitical stuff kind of perked up the geopolitical stuff going to underpin the market all year now and i think this makes for a pretty. going to environment for the crush just to reiterate that point the market capitalization of facebook is roughly 500000000000 so you're saying for the market capitalization of facebook one company you could own the entire mining sector the entire the entire sector exactly right answer i mean crying out loud that's just screaming investment opportunity and so you know we're all waiting for the world in but gosh this could be a really good year for people makes it sounds like a novice cust all song anyway we got to go craig hamby thanks for being on the cars

report my pleasure max well that's going to do it for this episode of the cass report with me max kaiser and stacy herbert like to thank our guest craig hampton of the t.f. metals report dot com if you want to catch us on twitter it's kaiser report it's all next time by. repeated promises. to the people come on. do with what's. really really.

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next as a financial survival guide stacey let's learn a salad fill out let's say i'm not so i get. the fight straight spot thank you thank. you sorry that's. slavery. please.

but i'm opposed to nominates a new prime minister. whose triggered revolutionary changes to russia's services in recent years coming up we'll tell you more about the man who's looking to bring tech innovations in the forefront of politics now. it's important that the young generation whose future taxpayers to morrow use the finger user interface which is suitable for their words to our western media downplaying president putin's proposals to delegate more power to the russian parliament as the evil plot coalesced to extend his time in the kremlin. now that. iran's press t.v. gets pulled from you tube in the u.k. again just hours after an earlier about it being really.