talk to you. face. of me. despite him being elected. sitting on a. bus in a. product you all know what. we know they do this for money. period over the grain of piracy. people.

find themselves on the receiving out. those are your headlines this hour. many many more stories to take a peek. at. this is the kaiser report imagine. the poor. thing. what happens a lot of bad stuff those books. and to some all make sense very shortly jason yes

we're going to look at some lessons from history and if the lessons of history are to apply to today that you should buy gold buy silver and buy bitcoin because there's always like this calm before the collapse everything seems fine you expect that marie antoinette is going to keep her head every day that czar nicholas is going to rain just as the romanovs of rain for 300 years until suddenly they don't all the calm before the storm happens so i'm going to look at some of the stories over the past week or 2 as this coronavirus hit as you know a lot of the as we've covered the baltic dry index copper * all the real economy collapsing stock markets booming in america so there's all sorts of like conflicting chaotic sort of symbols going on but there are some really telling details and some of the stories that happened during the time now i said history lesson so we're going to start in school this is a story from toronto teachers stay home as toronto school struggles to quell

coronavirus fears fear and confusion over the coronavirus have caused chaos at a toronto private high school made up entirely of chinese international students with teachers refusing to show up in class and some students being sent to the local hospital there's no evidence of anyone at the school having contracted the virus and 5 students sent to scarborough health network burch mon hospital on friday had been cleared to get back to my boats and right after the 21 crash the government put in a lot of anchors to the financial system they reduced glass steagall their news the securities act of 33 and 34 there was gold as an anchor in over the past 203040 years we've had de regulation the fatter removal of any connection to gold and as the crisis gets more and more we have more deregulation. and we have less of a banker and we have less tethered to something of substance and now in 2020 we

have a global potential pandemic here and people's fear is compound and by the fact that nothing in the global economy is anchored to anything solidity and so you have this marsh roaming paranoia by just orientation in a world bereft of any kind of solid anchor and it's only going to get more chaotic it is a good analogy you have said this and so is jim rickards that the pandemic in the health and medical system can be compared to a pandemic in the financial system so in 2007 to 20082009 remember we had a liquidity crisis nobody knew if any of these derivatives were worth anything so all banks all products all trade all acquitted he stopped because nobody knew what was safe and what wasn't here is the same thing the hospitals and toronto are

saying people are showing up in the emergency room without any symptoms at all they're just showing up saying do i have the corona virus and they don't have a fever they don't have a runny nose they haven't been to china they haven't encountered anybody from china but they're terrified of this the same thing happens in the financial markets when people show up is this the equivalent of the coronavirus this derivative that you're trying to sell me this package of mortgage backed securities we don't know what it is and they financial media has engaged in a wholesale misinformation and the lying and accounting fraud is rampant in the s. and p. 500 so people now are trained not to believe what they hear not to believe what they see particularly as economies become mostly financial ised and so we rely on those types of numbers to understand what the anchor is to anything and that's all been proven to be false so in a crisis like this happen. in the virus space in the medical space people already trained not to believe a single thing they see or hear on t.v.

because they know that is completely false and going back to 2008 when there was a global financial crisis because there was a complete disconnect between anything i'm anchoring the global economy like gold the policymakers in washington like obama's codger a timothy geithner and those guys they have the boat there's no anchor a sense of one thing i can instead of putting the son of lowering the anchor and to try to get back to reality they said here's a solution we're going to build wings on our boat and we're going to fly the boat into derivatives so see you're right so there's flying boat out there supported by derivatives and you know working so we saw a lot of videos emerge from china we saw people being locked into their apartments a whole buildings being surrounded by police and military equivalent happened in the financial system in the united states in 2008 we quarantined all of these products whatever they were whether they were good or bad in the federal reserve's

balance sheet it should have been just as stark and it still is stark the fact is that it's still quarantined on the fed's balance sheet and we don't know with this next financial crisis should it happen and this week next month next year a few years from now but when it does come in as it will have to come because all we do is boom and bust and now we don't do like normal business cycles we do boom and bust so now that we've quarantined the rest of the economy is vulnerable to it larry summers is the new ticker it's all us is advising governments on how to make boats fly into the stratosphere is not working well of course that's also comparing that analogy to the financial markets is that's why they say when there's blood in the streets is when is the best time to invest because of course everybody does doubt everybody does show up at the emergency room i think my product is is sick. my product is faulty i think my stock price you know that whatever the entire

entity of my company mcdonald's tesla you know boeing exxon whatever the company is everybody thinks it's all sick and they sell everything so in that time there will be some that aren't that are perfectly fine and perfectly healthy now ex-pats across china flee as virus fears mount this was in the early days of the quarantine and again this is part of the de globalization everything is just in time and this is all great and you know the past is like predicting the future that things have been going so well trade with china is going well stock prices always go up everything's perfect until suddenly you realize that wait none of the stuff around me. maybe it isn't as ordered and structured and absent of any black swans so you see what happened in china was that some foreigners feared being trapped indefinitely as airlines canceled flights and countries quarantine or limit entry for people who recently set foot in the country meanwhile many of the costly

private clinics catering to foreigners have started to turn people with fevers away raising concerns among the ex-pat community they would have to rely on local facilities if they needed medical care so there is the top one percent the top 10 percent the globalised traveling sort of intellectual knowledge worker in class and they think it's all they're all safe and this is going to be fine and they can travel and live wherever they want until suddenly they're trapped and stranded overseas and where they can't speak the language and they thought their private polish clinic was going to be there for them and then suddenly it's not want to go if that happened in davos like so many they got cut off from. modern conveniences medical assistance and even food and then all these billionaires and world leaders and influencers and all would have resorted to cannibalism and rats you know that type of thing. i think i would have paid to see that that would have been funny but of course this is also

a good analogy for anybody out there who thinks like well i'm american or are middle class are upper middle class i'm a doctor i make 200000 a year like watch better than all my neighbors i make more than them the feds going to take care of me so at the end of the day there's only a few select people party members that get taken care of and you're probably not one of them if you're sitting at that poker table and think you're going to be the one treated by the private fed you know the private feds going to take care of goldman sachs they could take care of j.p. morgan they could take care citibank and bank of america they're not going to take care of you they're not going to take care of your local bank and anything like that perhaps and probably well having lived as an ex-pat myself in different countries around the world for decades over over the years you know that us passport doesn't really work like a magic trick right once you are stuck in a foreign country and you are not able to exercise the rights to come with your

u.s. passport you know you have a big like wake up call the rest the world is a lot different you know america takes a lot of stuff for granted here it's easy street even the poor people in america i mean compared to other poor people there are living like kings of course with last week or the past 2 weeks when they did. fly planes there to go help ex-pats out of the country it was only the us when we had to pay big bucks to get on the plane the french and the europeans and the brits sent free planes to go collect their citizens but i also want to look at another story that from history and there is no more important document in history than the magna carta and this is really important to the whole big point space and to all the stories about d. globalization d. population d. dollars ation because one thing we've been talking about with d. dollar ization is that the u.s. dollar is part of the reason why. people are dollar rising is because the weaponization of the u.s. dollar and the increasing use of sanctions against even allied nations like germany

so here was a story a british man found guilty of trying to steal priceless magna carta now he said he thought it was fake but it was real it was and falls very cathedral but there was a line in there of course that reminded me of how important it is to today because we think everything is stable we think everything is going to continue as it is that the u.s. empire is the mightiest empire in history and nothing will stop and nothing can replace the dollar but remember the magna carta in june 2015 the despotic king john accepted the demands of rebellious barrens to curb his powers and agreed to the charter at runnymede meadow by the river thames west of london so here was a despotic king who had all sort of power and he took too much power he was too capricious and he was too. you know violent towards his allies the barons and they felt he finally had to give the rights that are now the is basically that led to

the enlightenment all of the rights of liberty that we have but because he went too far he abused his power he had to give up his power and i think that's what again i'm sure he thought he and his heirs and for the next several 100 years would continue to be able to be despotic until they weren't i guess the confusing bit today is that the property that was amassed by monarchs in the past as room been replaced by mind share by architect monarchs of the present they own our minds they socially and big part of our minds and it's hard to fight against that because you have to know your own mind and have to go back all the way back 2700 years ago to socrates and the ancient philosophers to regain your mind and i recommend anybody who's looking to regain familiarity with their own mind to start reading socrates and other of the philosophers who have the same problems back then and they cured them they fix them. inventing something called philosophy and in the last 32nd here

i want to say that you know it the ironic thing is of course the magna carta defined our rights in paper and this guy including in that paper was that you would be tried by a jury of your peers and this guy was found guilty by a jury of his peers so it was quite fitting that's ironic yeah plus it's already on the block chain so what's the point but. i guess that's going to do it for this particular portion of the show and we're going take a break and when we come back much more coming your way. as the election cycle rages on the media highlights or even invent what they deem to be important even radical what they don't tell you is how the political center is collapsing in today's campaign is what voters think about the status quo.

welcome back to the kaiser report i'm max keyser time now to turn to alstom a cloud of gold money dot com full disclosure i am an investor in gold money al so welcome back my pleasure much january 2020 is phone over and your

thoughts on 2020 so far out there what's your big picture there's a little picture here we've got independence i have to say this is my 2nd independence day the 1st was when i was a teenager in kenya when week a senior independence not we've got independence from the e.u. so perhaps it is done and dusted and all we've got to do is set the terms of trade and that will be done by the end of this year i the no deal well affectively. all the e.u. will come up with something being while we're negotiating with everyone else that we can negotiate with i reckon it's about 2 thirds of the world's economy. so for this country it's exciting but now there's always a but the problem is that the credit cycle is done with and we know what happens when the credit cycle turns you get contracting bank credit or

a tendency for it to contract you get central banks and again you get commercial banks going out of business getting rescued you get unemployment rising and so on so that really is the global background against which our wonderful new post. environment will develop well let's focus on the credit cycle there for a 2nd so. sure i guess you could say the credit cycle is turned but there doesn't seem to be any any shortage of credit 9 you know you've got the repo market expanding by trillions and trillions of dollars. and you've got a response to the to the corona virus in china. the chinese government injecting trillions and trillions i mean there's no end to the challenge of dollars and of course now you've got 4 trillion dollar companies you've got microsoft amazon

google and apple whose combined market capitalization i might add is approximately 3 times that of great britain and growing congratulations on being not quite as big as a big american company out there but nevertheless moving on. we've got a lot of money being it injected into the system when is the term going to come in the credit cycle i see is lots and lots of credit ouster what you're seeing is the response of the anticipate patient if you like from central banks they think my goodness things are not good we've got a profit up to stop it falling over so what you're seeing is credit not credit but money coming out of the central banks it's print print great print we cannot afford a credit cycle to turn negative a so that's what they're doing and you're right to mention coronavirus ish big down the chinese economy which is the 2nd largest sin the world on the p.p.

basis it is actually the largest in the world and what happens we just ignore it i mean the world has gone mad and today as we speak wall street is out of that does up $400.00 plus. you know i mean it's it is absolutely bizarre you're absolutely right to mention. the repos today are twice what they were on any day last week it's getting worse the liquidity shortage is getting worse and that is despite an extra 5 and a ha trillion dollars of money in the system post lieberman so who are ready i mean we've already consumed that credit. says things are getting tight and tough we see the baltic dry and back to new lows money velocity is that new lows oil is down substantially copper is that incredible a low prices $13.00 straight down days and so what what we don't have is

a physical world anymore upon which to base an economy we have a virtual world i mean take the case of tesla right tesla is a company that sells electric cars it's worth now $12830000000000.00 it's up over 400 percent the last 6 months the stock price that is and my point that i make about tesla is that it's a great brand and they could some virtual tassels on a block chain for the same $60000.00 that they sell real tesla's on to drive around town with it still great brand or in a virtual world why the stock could easily be worth a trillion dollars because a solid branded driven there's no there there right auser so there's no end to the money printing there's no end because the 0 percent interest rates and without a gold standard and you don't need copper anymore you don't need workers anymore you know anyways anymore you just need this open spigot of free cash from the

central banks and i don't see that closing as i've been arguing for 5 years that every time somebody tells me the bond market speaking the stock market speaking i say well who's clews closing the taps who's closing all the free money from the fed i don't see that happening and i don't see that happening today elster the problem is that if you print money that basic 8 you change that think out of the money that you're printing. so far they've managed to conceal less effect through inventing something called the consumer price index which begs no relation to what what's happening in prices prices in america off or linked the purchasing power of the dollar in america is falling by rough. 10 percent per annum and nobody bothers to notice i mean it's it is so crazy crazy situation and i think there's something more dangerous in the whole thing i recently wrote an article which i've researched very thoroughly before i get to find

a power level with what's happening now with some time in the past and surprisingly what i came up with was the john law mississippi bubble the key point to understand is that we are ramping financial asset prices including bunz equities at the same time as the currency is being printed to wrap now the problem is that if you leave these 2 things together then one false they both fall so what we're likely to see at some stage and i don't think it's far away when markets turn it'll start undermining the value of the dollar big time and then the whole thing goes into reverse you will have a real problem with government financing because they are in a debt trap i mean already something like 40 percent of. the budget deficit is committed to paying interest on existing debt just imagine what happens if the u.s.

government is forced to borrow last one and a half to 2 percent 345 percent that is quite likely by this year end the way things are deteriorating so what i'm saying is that not only are we likely to set be setting ourselves up for a crash in. financial markets but also it will undermine fit currencies and that is a very very important point to understand i liken it to what we saw in iceland you remember back in 2008 or so the icelandic banks were lending money to themselves to buy stock in themselves. it was a huge ponzi scheme and then when one side of the equation cracked the whole thing cracked open and iceland went into an unbelievable contraction and so we're seeing this on a global scale banks effectively are lending money to themselves to buy stock in themselves a mention that the purchasing power of the currency is going down with all this

money printing that's true there's a bit of a more nuanced answer though and that would involve they can't tell in effect because although the purchasing power is declining in aggregate the fact is that the recipients of that printed money 1st in line to get that printed money become these trillion dollar behave that's become the newman arkell class and where we have a new world of monarch some you're familiar with that of course over there in england thank god you got rid of all the on elected officials and the a you say can now have your own elected official in the queen elizabeth but that's another story but but my point being ouster that you've got a monarch a class emerging and why don't they just i see in and they are reducing hours on some of the training exchanges why don't they just continue reducing hours on all exchanges and just just box people out the free market enterprise we don't need

them just go private just go private just go full monarchy right you already got one over there you're already ready for it that's it breaks it's all about you're ready for it so why not just have every country go full monarchy at this point allister what also especially. but. seriously i cannot say there's any way out of the dilemma within which we put ourselves a central banks have already got in there is no option but to keep the system propped up and not just going to mean print print print i can't see where the alternative is so we will end up in a west crisis as a result i don't think that managing to delay this crisis the idea that. hal. the raid which we'll be talking about since the lehman crisis that is now coming to an end i think the whole situation is actually very very serious blow lots to talk about the gold market for a 2nd so now we've got the official gold reserves on the nation state level are now just 10 percent below their all time high of 38491 tons was day chiva

1966 for the last 20 years now they've been aggressively buying gold principally china and russia and other countries have been buying lots and lots of gold south in a world of this fiame where they're just printing by the trillions and. hoping to solve virtual cars in cyberspace for $50000.00 a pop on the block chain are these central banks missing the point i mean what are they going to do with all this heavy worthless nobody likes a gold alister the gold is not held in the same hands as it was. you know we were last time it sort of between 30 and 40000 tons of money tree gold in the central banks in those days it was basically. the u.s. treasury that held it. fed had its in on its balance sheet under a note now it's so it's of course it's all in asia

a lot of it in asia the central banks that have been adding up the chinese the russians in particular the various downs that. look at the bank of england what's the bank of england the bank of england hasn't bought any gold whatsoever so we're not prepared for. a loss of purchasing power if it currencies we have got nothing relative back in syria america has but america has hung on this cave's you an idea that we must never ever invoke the pet rocks again so there's going to be a huge weight transfer mation all thought process before even that it's mobilize. i used to help out with current see but i just don't see that happening in fact britain has sold half of its gold more than 300 tons under gordon brown former chancellor of the exchequer in some dodgy deal with goldman sachs as i recall to bail out somebody somewhere but yeah you guys are aware woefully underprepared for

the fianna apocalypse but thank god you've got your independence now alister we're going to have to acquire this over to a 2nd scintillating episode so thanks for being on this up a. very much my pleasure that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert like to thank our guest austan macleod of gold money dot com if you want to reach a song twitter it's kaiser report until next time by he'll.

join me every thursday on the alex salmond show and i'll be speaking to guests of the world of politics or business i'm show business i'll see you then.

the be . one of the 6 says she should. like to have the benefit of that. service.