i don't understand why he thinks we're interested in this thoughts he's obviously trying to justify his low returns last year the nasdaq was up 40 percent the stock markets were up in general about 25 percent he himself his isn't best for his only received 0.25 percent i don't know if that even covers all the fees they have to pay him and his crew but he lost money but maybe now he's capitulating that could be a sign of his capitulating is like i'm going to jump into this market maybe he didn't believe in it because a lot of people are intellectualising this and the fed can't control everything the fed can't do this the fed can't do that what he was trying to do perhaps was fight the fed a lot of people try to fight the fed peter schiff tries to fight the fed everybody tries to bite the fed and the fed loses or the fed wins until it will suddenly lose i just don't understand why how can so migrate deleo in a market that's between 25 and 40 percent not even make one half of one percent of thanks all genuine amount of skill to underperform on the level you know it's

a money market fund even at the worst money market offering rates in any bank in the country did better than rebel yell last year this is almost underperform negative yielding bones maybe he is the hedge fund because ray dally of course is worth like $10000000000.00 listen connecticut has bridgewater capital capital which has tens of billions under management maybe he's the hedge fund that the repo market is bell yeah nobody knows why the fed is intervening in the repo market they did suggest while davus was going on that they might actually start lending cash directly to hedge funds maybe he's he's the guy maybe that's the quid pro quo for him that's why he's up there saying don't fight the fed people don't do it i mean i lost you know like maybe he's up there now championing the fed telling people to get into this market at all time highs and you know he's changed his tune well he wrote a book because last year culprits. and in this book he list like

a 100 or 150 of his principles of how he became so successful as a money manager. yielding virtually 0 results and so i think the 1st principle anyone should understand when talking about ray ballio is don't listen to rate deleo that's principle number one if you buy his book you could use it as a doorstop or maybe kindling wood but it has no practical value as a source of information it's a plagiarizing aristotle from 2700 years ago for one thing and it's just a lot of verbiage i mean if you it's a lot of words it's a word salad meaning nothing well you know who do does get celebrated by the market by market commentators by the likes to see n.b.c. is jack welch now jack welch of course ran general electric from 1901 to 2001 the stock price increased by 4000 percent under him but it was a one time trick everybody is now trying to copy him of course what he did is just

hollow out general electric general electric used to being an amazing american corporation that built this country turned us into an industrial powerhouse amazing engineering well he came up with a clever idea of getting rid of all the expertise getting rid of technology getting rid of manufacturing getting rid of all the stuff that germany now controls essentially and just turning the brand in the value of the company turning it into a derivative essentially hollowing out the company turning into a financial organization it instrument and of course the stock to go up 4000 percent and now it's down down down down down. but many of the people at boeing i learned are also they were trained by jack welch so we look at these planes falling out of the sky and you look at this nonstop disaster after disaster they keep on revealing about how the 737 max just can't. be brought back into operation and

probably never will because apparently it's not even designed to fly only the software enables it to fly anybody who has a computer at home or a smartphone why would you ever want to trust software i don't know if lies in a simulator on a video game but it doesn't fly with real planes going through space junk into the sky yes right so you want to get on a physical plane a boeing physical plane to get to what point a to point b. because the software is only good for a video game it's good for your kiddos the video gaming device but it's not for humans to be in a plane that's a you know there are a lot of people the left general electric to want on to become executives other companies with that philosophy of just got the company as much as you can to make yourself as rich as possible you know that's why they call general election jacks but droste it's jackson a droste that was is a little school of thievery over at their general electric in fact david calhoun the new c.e.o. of boeing was trained under jack welch so here we're going to look at

a headline from wall street dot com after blowing $43000000000.00 on share buybacks and 6 years boeing scrambles to borrow $10000000000.00 on top of the $9500000000.00 credit line in october to fund its 737 max fiasco the 1st thing to know about boeing's mad scramble to line up $10000000000.00 or more a new funding by a loan from a consortium of banks on top of the 9500000000 credit line it obtained in october last year efforts to somehow get through its cash flow nightmare caused by the 737 max fiasco is that the company blew wasted and incinerated $43400000000.00 to buy back its own shares since june of 2013 having become a master of financial engineering instead of aircraft engineer ng so the jack welch acolytes who were brought in to boeing since 2011 which was when they were learning let me let me explain this to me the proper 2nd uses ok so boeing boeing becomes a passer mechanism. right so they buy back their own stock with cheap money from

the fed and it goes through the company ostensibly to help the company but as stott it's disenfranchising the company and then on the other side of the executives who are getting that money from the fed directly into their pocket they use the company as a pastor mechanism and what happens is it leads to incredible malinvestment so boeing now is no longer a viable company so bad in fact that and the debts are so onerous in fact that even money at 0 percent is not going to help them recapitalize this this this garbage company now boeing that's worthless essentially it's insolvent and so what do you do now because there are a lot of companies in the s. and p. 500 zombie companies that are like this the executives stole all the equity through a pass through of cash from the fed at 0 percent interest rates disguise the stock buybacks and now they're just a walking zombie and it's all fun and games are no victims according to eric holder but if you're in a ball in a plane and you fall out of the sky and now you're dead eric holder i would say

that's a victory so i'm going to compare it to charts here's general electric this is about when jack welch is brought in this is what he did remember back in the ninety's you'll remember him on the front of all this fortune forbes he was hailed as the great savior merit he is that the champion he was like as great as warren buffett he was like the man. and this is the company ever since and they've received bailout after bailout they received bailouts during the 2008 financial crisis here's boeing. 2011 you know this is when they brought in the 737 max as a response to air bus out competing them here is when vesper starter rewarding them for turning into financial engineering from 2016 to 2017 they fired 8000 employees at the company including 1332 engineers and look what of course happened to the stock price investors tell ya keep doing this get rid of those engine. they cost too much it's too slow we want results this day to day within the

hour we want the stock price to keep on going up and of course it didn't keep on going up but eventually of course if you don't have engineers then you can't design and engineer a plane to fly in the sky right the barbarians and the vandals have penetrated the enterprise that was once called the united states of america and they can't print this garbage feel money quick enough just like the roman empire started clipping their silver coins and they couldn't afford to pay their soldiers anymore and you had a collapse of that empire you went into the dark ages america's clipping coins by printing money to give the barbarians the executives at boeing and general electric and the s. and p. $500.00 inflated workless money so they could go out and live somewhere else overseas not in the future it collapsed shell of a country that once known as america and this is not going to end well this is just the beginning boeing used to be at least over 7 percent of u.s.

exports so they're very important to the us now it's a shambles and you mention the debt the 2nd thing to know about boeing's mad scramble to borrow another $10000000000.00 is that it already has a huge amount of debt and other liabilities that it's total liabilities $136000000000.00 exceeds its total assets of $132000000000.00 by about $4000000000.00 as of september 29th teen meaning that it has negative net equity that the share buybacks have destroyed its equity which is what share buybacks due to the balance sheet passed through free money goes to the executives the company is collapse under shell of its own debt right it's what we saw philip green do it with top shop in the u.k. 5 or 6 years ago he loaded a company up with a 1000000000 took it out lives in monaco and topped off down right this is lettuce is an event. and the leverage buyout in england you know 50 years ago and now it's

the endgame yet but that's just clothing this is retail here is the heart of any giant industrial power is manufacturing is this to have that technological know how to get rid there's 1332 engineers that were fired disappeared what are they doing now they're probably working in china and building china's new competitor to boeing because what if you don't have the technological know how financial engineering cannot replace that and that's why you know rest of the doubt is not that the debt exceeds the equity they're technically insolvent they stock is 0 today it's worth 0 if you went out there to try to sell boeing today you would get nothing for it's worth nothing but it's kept alive by the central bank who is in the service of currency. terrorists right in my view these are the terrorists as i've said many

times i mean people would argue with me but give me your arguments and i will shoot them down because you're wrong and we take a break when we come back much more coming your way after this. but it will be it could seem to think oh boy did i but if. you don't know who's going to. go into my. new home you know on the outside i get a good show about the movies. if i'm listening to mickelson on the field in show up

unless. it is not so much because of my hands it is a constant that he was excited to puff a millions. i. actually don't think monopolies per se are the problem it's monopolistic access that monopolies have to credit or to politicians and public but with the crony financial ism crony capitalism that's the big problem. the world is driven by dreamers shaped by those great.

snow dares thinks. we dare to ask. welcome back to the kaiser report imax keyser time now to go to market morgan creek capital he's one of the earliest if not the earliest money manager to get his clients into a bit climb mark welcome back of thanks for having great to be with you all righty i'm going to ask you some porton market related questions here since you're such an expert in what not the new york fed has been intervening in the repo market sense the 4th quarter of last year what do you think is going on. q

e 4 ever if it has to pay for it q e 4 number 4 ever they don't they don't call it q.e. but it is in the government is monetizing debt too much debt no demand people are selling debt around the world people are buying it as much in the u.s. so they've got to you got to be a buyer buyer last resort the fed so the fed is doing everything they have buying t. bills intervening in repo market and the big problem of the repo market is there's a supply demand problem right they've got these funds that are all levered up and they're the only ones buying equity right now so if they don't provide them with the juice the equity market would go down which is that's just not allowed today because really people say the economy's not the market there's a thought now that maybe the market is the economy i mean you know if you're going

to do that that's a fascinating point now you're a money manager and did you know that the biggest buyer of negative yielding european bonds are american pension funds who are possibly buying these things in there for a one k. plans without even knowing it such a great stat such a great stat and you know the tweeter in chief right our president was in davos saying that he could get used to negative interest rates biggest rates might be might be the worst creation in the history of finance. probably some of the things that are gradually mal's confiscation clearly what f.d.r. did to hold confiscation yes this is they could quibble into that in the financial eyes world or not on the gold standard and or so they don't take gold away because it's not part of the economy as it once was but they do negative interest rates as another way to do wealth confiscation to feed the plutocrats of davos who are basically run ca's right there just cleaning the creaming the top consistently and that's how you have this enormous wealth gap but i want to get back to this q.e.

idea because you say repo markets the repo market is q e by any other name it's q a now this is very interesting because talk about donald trump for a 2nd does he understand that the repos expansion of the last few months is quantitative easing and it is the fed being expansive because he's criticized criticize the fed and says they know they need to lower rates because the dow be 10000 points higher so this is cognitive dissonance he doesn't understand really that the dow at 30000 is a the last 20000 points have been because the fed expansion correct ok and q.e. 4 is fed expansion repro market is fed expansion abs so is it is he is he playing stupid or is he stupid yes. version i think he is playing but i actually think he has to look for math is hard and most of these guys have no idea

how to do math and they can't make it all pieced together but the one thing the put across of the kleptocrats is i like to refer to him one thing they do understand is the game in nz if they're forced to actually. paid the debt so the only way to support a ballooning debt caused by a trillion again with a t trillion dollar every 2nd for 31710 years that's a lot of money a dollar every 2nd that is expanding our national debt every year by that amount because our deficits a trillion dollars so the only way you can service that amount of debt whether it's in the us europe or japan 3 developed markets is by lowering interest rates to their natural extreme which is 0 but then you can actually go further to negative interest rates and confiscate wealth to pay off that debt and basically

what you're doing to your point is creating wealth inequality which is the whole dictator playbook you get to the top you and your cronies take the wealth the bulk of assets i think 85 percent of the u.s. stock market is owned by the top 10 percent of people 49 percent people own 0 stocks so don't care that the dow's up to 30000 has no impact on their life the people at the top really like it and then you slowly devalue the currency which upin is done which europe has done and now the u.s. will eventually do and ultimately what rises in that environment is the substitute for fia krypto let's go back to a point made there 2nd ago about is it the economy and is versus the stock market who's driving who really is the tail wagging the dog so i take it your feeling is that the stock market now is the economy it's the tail wagging the dog of the economy is the stock market and they follow that up with what you were just saying

about this debt that's in the economy it makes the difference or only makes a difference when asked be paid off correct but so in a financial eyes economy as you point out does multi multi trillion dollar financial as a con with a 0 percent interest rates my posit sitting. i posit and curious what you think about this is that the this this is a scheme where the 0 percent interest rates on the stock buybacks that used to be illegal is effectively to those plutocrats or private equity firms are taking the entire stock market private yes so they're they want ever have to pay off those debts because they are essentially pulling the plug on the stock market in $5.00 or 10 years time they might have a few future stocks traded here and there but the s. and p. 500 will by and large be gone a lot of things to talk about their one on buybacks just more q.e. right stealth q.e. basically the government ok the fed can't buy stocks it's against the law they can

do it in switzerland swiss national bank can do it in japan bank in japan basement in 75 percent of all the ts in japan crazy so they're allowed to do that can't do in the u.s. so what do they do the administration goes to big corporations boeing apple cetera and says here's the deal we're going to cut your taxes going to cut corporate taxes in exchange you can't hire any new people you can't invest in r. and d. you can't put any money into the economy you have to buy back stock. hundreds of billions of dollars of buybacks and stock at higher prices with boeing boeing down 33 percent since they start buying back stock crazy stuff well not only got in the 1st line because boeing started buying back their stock and they cut back on r. and d. they cut back on safety they cut back on engineers they cut back on basic business standards yes and people started falling out of the sky and die and they re engineered a engine for a different plane to go on a $737.00 that everyone told them wouldn't work and turns out it didn't work they

tried to fix the software which didn't work how is that not negligent homicide what is ok you have i would agree that it is they don't get to have to go to court. they contribute a lot of money to the admin. ration and that's how it all works said of the paid a place of her oh works really really well you know it's kind of like the whole warren buffett never would think sees the nice benevolent grandfather well really he plays the system he makes huge contributions he gets things that he wants he gets pipelines delayed so his tankers can carry oil he gets you know deferred taxes on his very nice structure so there are a lot of things that people do in this pay to play world that you and i couldn't get away with we didn't up until but they get not only is the economy bifurcated between the have nots and the have yes oh i love that right but so do you know that

is so to the rule of law there's 2 sets of lost there's laws for of course the private equity group there's laws for everyone else i was able to different countries and was being taken private was pretty money from the fed yes the other people are that infant mortality rate is higher life expectancy is dropping yes and we have a sensually a return to medieval times can even go further with the hope you would crisis we create products at the top by paying off the people who should be looking at the safety net to see if those drugs those opioids but now 40000 but that number sink in for 2nd 40000 people a year in the u.s. die from opioid that's more soldiers than we lost it not absolute so if we're killing a vietnam sort of americans every 2 years to make one family the sackler family in connecticut billionaires millionaires who then contribute back to people who get elected so places let's talk about ray dahlia for a 2nd so he's

a contemporary right yes all those little more successful i as a bigger fun but in the same business yes man it's a big fuss last year he had a very poor halogens a very challenging year i think it was less than a point $25.00 a quarter of a percent ok. the market by the way was up 25 percent nasdaq was up 40 percent and he's just come out and said basically that cash is trash and he doesn't understand because unlike peter schiff doesn't respect quine so he said i'm going to buy gold instead because i don't i wrote a book called principles or whatever but the idol was which is like him winching for 500 pages about stuff that you could read in aristotle from 2700 years ago that's you know raising reprint plagiarising us and but his performance stinks and he won't spend 10 minutes to understand because so in all of that he says buy gold in your thoughts he said cash is trash at davos in 2018 within i think

a week we had the vol spike and you know pretty significant crash when the fed really started to intervene back in 18 to try to bail us out $1000.00 still was a lousy year down 6 percent in the markets. and so then we had the flash crash at the end of the year and i think the problem for ray right now is the key is in a phone in he's got this giant fund and he's trying to play in markets basically levering stocks and bonds it's a balanced portfolio of stocks and long bonds levered called risk i mean risk. challenges if long bonds are a preteen and stocks are up 31 how do you go a point 25 you must not be actually doing what you say your doing. that would be the 1st is the level of assets under management where expectations for performance are diminished with the bigger the fund in other words he so big size is the enemy of alpha always has money is an enemy of alpha writes alpha being performance so why doesn't he just understand that obvious point in his book of

principles and break it up into 10 different fonts to get some alpha because he's boring everyone to tears with his winge ing and going on in these principles what is performance thanks but here's the thing the principles book aside it's great but your point just aristotle you reimagined or plagiarized i like that word i love that but the problem today is to say cash is trash misses the whole point right if if you think about warren buffett highest cash level he's ever had his history. people are usually the most famous you know best investors well why would he have the most cash in history if race is the trash why would race a buy gold when you could have the advantage of gold as a store of value in digital form because because you understand your point and spend time on the same reason the charity monger warren buffett says it's ready to ship here's a whole different animal right peter is going to go down with his bullion ship you

know to bottom of the ocean like a spanish galleon because he's just stubborn right he actually came on pumps web i mean i talked and i tried to pierce it to my pick on a 10 dollars exam his house in connecticut i 1st missed day and he's like allergic to this anyway i've got to go take a break come back thank you for being on this segment thank you that's going to do it for this edition of the kaiser report with me max kaiser stacy ever like i asked mark used to go of morgan creek capital if you want to read just on twitter it's kaiser important. is you'll be d. a reflection of reality. in a world transformed. what will make you feel safe.

isolation the focus need to change. are you going the right way or are you being led so. direct. what is truth what's his fate. in a world corrupted you need to descend. to join us in the depths. or a maybe in the shallows. and . my uncle with a kid same compensate oh boy tonight nobody. can see them no prove nothing and they can. go into. the county. illinois

move on which i didn't get showed up to move this because of a mess and in from the local going to be as you can show. them we must. stay still not so much because i consider they tons of it because you must say i'm ideas. on. trade and investment to become magic spells to come to economic development. most people think about trade they think. about goods and services being exchanged between countries and the investor a chapter of a trade agreement is about something very different but what one investment leads to toxic manufacturing that destroys sacred sites all ruins the environment. that means local communities that are being poisoned to thing object if they do anything

that the company feels is interrupting their profits they can be sued. the nationals are taking on the whole nation philip morris is trying to use i.s.t.'s to stop tour of the white from implementing new tobacco regulations aimed at cutting domestic smoking rates a fringe company sued egypt because egypt resists minimum wage democratic choice trump corporate. joint says we try to fund don't want to touch it. my. dad.

revealing his hands on trump is finally about to let the world in on his plan to bring peace between israel and palestine despite international concern the u.s. president has already made too many concessions to israel. and the clinton lashes out at facebook's mark zuckerberg for quote intending to reelect. while keeping everyone accountable for her 2016 u.s. presidential election victory. i always thought many people i know a lot of thought that he was part of the state that he was on her side he's against her. so the u.s. denies the taliban statement that it brought down the pencil.