companies want us to feel good about buying their products while the damage is being done far away this is this. i am asked kaiser this is the kaiser report let's start off with a quote from our einstein hero once said that compound interest is the 8th wonder of the world he who understands it earns it he who doesn't pays it this is

a remarkable quote from last time and it has so much to do with today's stock market volatility and the coronavirus all working at the same time and showing what compound interest is all about or what exponential. algorithmic expediency is up yet stacey what's up max we're thinking exponentially in this episode a kaiser report during the exponential spread of the pandemic coronavirus we're looking at the 2nd half of the chessboard as it is called and i want might want to add that today is my birthday so turning one year older in the midst of exponential pandemic which is hitting the mortality rates go exponential as you get older is not fun to turn a year older in the middle of a pandemic but before we get into the exponential growth of the pandemic let's look

at the results of the exponential growth in debt over the past few decades chis report of course has been reporting on this non stop for the past 10 years and i want to look at these 2 charge is the 30 year treasury and the price of oil if you turn it upside down. you see the exponential it's going exponential down 30 year treasury yield is well below a one percent oil price obviously wheat collapsed 30 percent on the opening on monday of this week the price of money whether it's cash 2 year note 5 year no 10 year note 30 or no is approaching 0 so money has no value whatsoever gold 'd is hitting new all time highs in currencies everywhere in the world that will soon be hitting a new all time high against the u.s. dollar because it is holding steady it's all the great it started out at $1.00 it's now you know hovering between $7.00 and $9000.00 per because. you know this is the

store of value the safe havens that people are going to run to when money becomes worthless and negative rates become the norm so money is worth less than nothing it's worth less than the toilet paper people are hoarding as a matter of fact toilet paper percy is now worth more than a dollar per sheet in some instances people are paying $67080.00 a roll for toilet paper that is an exponential growth in the price of a sheet of toilet paper paper that is indeed correct and of course i do want to remind you we are in the middle of a bit of a pandemic and which you're supposed to wash your hands all the time and not touch your face so please max do not touch your face otherwise that clip will go viral you know everybody who touches their face goes viral i want to add because it's my birthday max got me something even rarer than the gold ring you've got it's the hanson of ties or that is also in short supply so again that is tied to our hyper exponential growth in sort of globalization that happened for example it was in

just one year that 95 percent of the capacity to produce facemasks medical masks met and personal protection equipment was exported to china it happened one year in the last 10 years so the. that was an exponential growth in the export of our jobs but now we are left helpless in the us so on top of that we have this exponential growth and debt that has left us very fragile the opposite of what nassim taleb would say is anti-fragile had we had the capacity for example to produce our own medical equipment our own medical supplies our own pharmaceuticals we don't have that so what we have is essentially a controlled planned central bank run economy and that is where everybody is looking for answers to a pandemic which is just bizarre in the past week before as this crisis was unfolding we saw the st louis fed president bollard says credibility of central

banks seems to be eroding so comparing it again to 2008 and the 2008 crisis when we saw gold sell off by 30 percent over the course of 6 months i don't think we're going to see that this time because as he points out rightly so i believe that the fed has lost credibility and there is nothing but faith in the sense of a fee up currency world so i think central banks have been the biggest buyers of gold since 2008 so you have strong hands holding gold at the moment rather than those we cans of the hedge funds that had to sell off gold in order to meet margin positions back in 2008 so this is my instinct i could be wrong but this is what my instinct is telling me well you know people are losing faith in central banks so central banks replaced every institution and society they replace the church they replace the schools they replace the markets with no price discovery and so it's very this is part of the transformation of the global economy

in particular the american economy into what's called the american market fundamentalism where it's pure theocratic fanaticism believing in the sanctity of the central bank and now that disappear and now prices are finding a level. well that reflects the true supply and demand of a genuine economy and those prices are going to be a lot different than what we've seen in the last 30 years it's just bizarre to be in america and watch that this is a genuine fundamentalism everybody from the president to senators to congress to legislators everybody's expecting the fed to rescue the entire like to stop somehow a biological event a viral event that is spreading and killing people and i want to bring this back to because we have always been talking about the pandemic of money printing and the nonstop exponential growth and that there's been an exponential growth in debt

since 2008 mostly from china but also in the corporate sector in the united states especially the fracking and the energy sector. i suppose that's going to blow up rapidly but other sectors are going to blow up as well and whether or not we can print our way out of that i don't think so i think you'll see intervention by the state with fiscal policies instead of monetary policies because no choice but in terms of the way markets can predict things we have this spooky event which was last summer june july when we interviewed royce a bog here and you know negative interest rates broke all laws of the physics of finance so we were asking him and he's a great thinker he runs full money and then a dot com and what he said that could possibly be the case is that. negative rates were predicting a mass decline in population a mass extinction sort of event he didn't know whether it was going to be by choice

people would just stop having children because it was too much debt for example or some sort of pandemic and it's interesting that the markets the hive mind of the markets saw this coming like no matter how much humans think were above all other creatures on earth whether they're insects that or the amazon rain forest or the creatures the 95 percent of species that we wiped off the face of the earth the fact is we're still connected to them and we see we see this coming and we see that we have this 1000000000 year old instinct for survival and for what's coming so i think like where that herd stampeding or cross the serengeti there is the hierarchy there's only guy and guy is mother earth and it's all one we're all one all one living organism and humans started to behave as a cancer and so a guy is trying to push them out of the ecosystem and they can do this in 2 ways

the one they have fears because which kills off the money and i believe the problem with money and central banks today is the presence of because which is the apex predator in the universal cosmic economy and then corona virus is just other obvious example of gaia depopulating planet earth the. intuited this you know what they get of interest rates and it brings us to the 3 d.s. remember look at the economy using your 3 d. goggles. dollars ation d. population i don't think it necessarily had to be that situation i don't think that was the obvious outcome of this but i think it was because of the exponential growth and debt that we had no choice in the us and we also were unfortunate have trump as president at a time where he only believes in the price of the stock market whatever that is and it must go up next the. at all costs the fed seems to believe that as well as do all of the bankers that they serve because we there was

a any time the market started to correct even a little bit they had to intervene and you know all that exponential debt is also playing out in the you know the political sector because what exponential that is is not only did we have negative rates in which time had no value but exponential debt was stealing from the future and we got so far into the future now they're trying to issue a 100 year bonds and that's like stealing generations that haven't been born but at the moment where they're the boomers are definitely colliding with generation z. and millennial is and you see that in the political space you know the choice between neoliberal status quo biden continue as it is and bernie sanders he wants to tear it out down and bring in basically redistribute the wealth or redistribute at least some of the risk and all of that debt put it back on the balance sheet of the boomers from which it came but i think this is also that collision and in terms of political events you know hyper inflation is the most political event of all

remember in 20082000 i report we covered everybody in the gold and money sector work saying well is it going to be inflation or deflation with all this money printing some a said it might be hyperinflation but there was never that doubt as bollard says you know that there's doubt now there's a lack of faith in the central banks looks as a fed has lost control 10 year u.s. yields collapsed after fed 50 basis point emergency cut and it's fed has ramped up balance sheet there you see when they tried to taper the ponzi scheme last year now they're having to expand the balance sheet but at the same time again the hive mind the bond investors never believed that that was like if you turn it upside down that was exponential growth and basically the 10 year yield of the central banks of the cassar you know they approach it like a citadel and so they're taking all that stuff into. the citadel and are not yet at the point where we're declaring that victory over central banks because they have

the ability to expand their citadel exponentially and the boomer play the coronavirus it targets 6070 and 80 year olds that's a way to pass on some hope to the younger generation also the boomers tend to hate bitcoin so here we have a pandemic the coronavirus and the pandemic of big oil all targeting the 6070 and 80 year olds that's trying to pass the baton on to a younger more enlightened generation i might add that. i mentioned his organization that does system risk they say he says for a new 50 year olds they should all not go outside at all that's gaia floria of course he's 60 or so anyway stay tuned much more coming your way don't go away.

the world. in the united states presidential candidates debate the future of the u.s. and the world. max kaiser and stacy herbert dig into the burning questions of this election cycle one topic every week will tax student debt trade wars corporate money universal basic. and more. with what's front running this

sunday exclusively on. seemed wrong. but old rules just don't. let me. get to shape out these days you can't get educated and engaged with equals betrayal. when so many find themselves worlds apart. just to look for common ground. welcome back to the kaiser report imax keyser time now to turn to steve keen he's the author of the bunking economics he's got an amazing patriotic page at profess

or profit steve kean where you can basically become a student for much cheaper than going to any university away on the universities are no good steve welcome back good to him actually i like the resume that i do lakisha now let's talk coronavirus you recently wrote that we need to start thinking exponentially in order to can tain the coronavirus elaborate on this what does thinking exponentially look like steve well it's it's actually a great old analogy max that there's 2 of them want to do is imagine you go. willy growing on a pond and it dials and saws every day and it gets to be coming out are sent on it will kill off off if you get to the stage that it's 50 percent of the on how much longer if you've got one mode so if you do a lie it you know it's not big enough it will end with it within the last 4 days it will increase by the factor of 6 am and you'll be overwhelmed and i want to remind knows that the king who has a mathematician to help him win

a battle and he says i'll give you anything you want and the bosses well i want this one granted ross on the 1st square of chessboard 2 on the 2nd 4 on the eccentric cetera and by the time it can go so that this thing's square what he thinks he has a bogen he realizes discuss going to take over the entire kingdom so he hasn't bills that's what's going on with her head of ours it doubles at the moment by the looks of things about every 5 to 7 days which means that they only every way they're fossils many guises so if there's they say if you go to the size we're off the world is infected let's say 25 weeks with 26 everybody's got. and therefore you really have to move as early as you can just slowed down and if. i'm going to start wife mother will you by doing that you increase the doubling talk or you might say one way to which and that has an enormous difference on how long we have to react

and we really have to increase doubling by some or the order to wait 2 months if we do that we might actually go do it what was that saying before everybody gets that it's interesting they say people have difficulty in conceptualizing in a exponential way problem like this you know particularly interesting when you consider that for the past 25 years the entire global economy of the entire global stock market has been driven by social media companies that are driven by the so-called network effect which is the exponential bureau of the network of the social media they refer to these things as growing like viruses and this is really defines our world is the network effect virus effect like growth of social media so then we get a biological virus and suddenly people get stupid they're like i don't get it how can it double and how going to double in size every few days is i don't understand

this seems to be a massive disconnect but anyway you have a plan steve keen to basically give everybody. a some money to stay home and stop the spread of the disease i believe this is already being done in places like china tell us more this is one case where the capitalist system which works brilliantly when you try to get as i want to study the bios will break down because this simply know why the market system will function this through a period where you have to offload everybody but something like a months and it's particularly bad now because we have so many people on precarious contracts who have the lucky to have for 2 weeks of income kind of for it not to be connected so for wakes we have people paying mortgages with a load of mortgage that household debt compared to what it was back at the time of the loss and then which was back in the spanish flu in not tonight saying we have 4

times the level of household at that stage so if we went says the title for an act that none of this government and all the sins what would happen is the huge proportions of population to rent would file the pay their rent they would face eviction which would make the infection worse because they'd be on the straights and possibly the loser out we'd have a mortgage it would be most days they would be evicted from their houses the people who are the most withdraws would find that their debts are no longer worthwhile so they draw down their assets ought we can have a financial intelligence that makes the coronavirus us and in that situation a policy that i have put forward about a decade ago to say we usually remnants of the 2000 that financial crisis what are called a moment to aaa that i think is now i never thought that nature has this thing in a minute but i think now because we have this intentional one month right which we need to start with our simply play that one month reich would have to be cut by

government giving money to everybody to say is enough cash to pay your rent pay. a mortgage small businesses not just all when they when they go i just miss the restaurants being an obvious example and. created money and bank accounts well francis well coles people spot a side of easing that's what we need to get over this process if we don't do it then the financial effects may be as devastating as it is itself right now you make an instant point there we are witnessing central bankers and leaders of the i.m.f. and financier's and people associated with wall street go on television and talk about ways to curb the coronavirus by printing money for them by bailing them out by giving them more quantitative easing by lowering interest rates around the world as we saw at the fed the fed

a statement in at the treasury the united states says we're going to fight coronavirus by job owning jay powell at the federal reserve to cut interest rates by 500 basis points and to your point. that money could go toward. having people stay at home which would actually curb the virus by giving bankers more money and by the way during these press conferences they're touching their face they're blowing their nose they're spreading the virus during the press conference asked begging for more abella money when they could just give money to people and stop the spread of coronavirus you know this is like 2008 as you said back then there could have been a quantitative easing for the people bell out the debtors instead of the creditors and here we are again in 2020 instead of bailing out the people that are sick by keeping them home the response by the kleptocrats is going to big hey let's give more money to jamie diamond again isn't there

a connection can't you say that the malfeasance and poor judgment of bailing out the banks in 2008 actually led to the rise of coronavirus by. instituting malinvestment around the world and now we have the result of that they've gained i wouldn't blame us on q. and a i wouldn't blame it on global warming and climate change a that want to blame it on the scene the coast climate change and that's it human pressure putting on the environment because that is by preparing locals to us given this global warming now with the same recent studies saying that the the the mass of animals on the planet all that mass 90 percent of them are either humans or animals that humans very upset h. and o. use it in a lot of oceans so with might associate because they pose for a pathogen by putting too much of a strain on the planet there's no read that it is know why that of ours is going to

survive and prosper by infecting toggles because we're watching them that they're dying out of us dying out this guy is the place for a host of the vote is humanity now it isn't and again with what i've seen to a sustained practice is yet another ineffective policy by people who are in shock and awe to send a system that runs and that was it was just an accent because the money from kuwait which is about a trillion dollars a year drilled into the a real economy maybe about 100000000000 dollars a year through into the salaries and bonuses the finance sector itself. will gain is that just a claim as i got to claim the mantle again his successor etc so it was a trivial and analysts trivial amount of a lodger amount if it inderal economy guy to some growth but massively inflated asset processes that set us up for a problem now because they balance sheets of banks into the interest of companies late on the value of the stock market which if this keeps on going the profit of

ours it will plunge that may banks might go bankrupt because that balance a combi propped up by the fed reserve enable so you really have to side throughout the end effected by. states give money to the people directly which is what they need to get through the one month which are not oss marcion that has. allowed companies to go bankrupt and still function because we caught in forcing all rules of the market right now and directly by ship is the same why the japanese central bank has been doing for some time by those who support the market rather than giving the money to the finance sector in the hope that she is because at some point they want help with the money and run and they're going to have a lot without an engine and the japanese central banks on 70 percent of the stock market that's it a situation of having a stock market crash a financial sally got the payment system writing down and basically end up not in max foster territory going to the mad max territory just to follow up on my comment

about 2008 because it plays into later talking about environmental pressures lead to coronavirus going back to 2008 the bailout of the creditors that destroyed market signals that destroyed the ability for the market to communicate through price signals where it effectively allocate funds in that case it would have bent toward fighting environmental pressures but that never happened hence we had to run a virus but let me ask you about the supply chain just in time globalization has left us helpless in the face of shortages of things like face masks what should be the response there steve this is a real problem of modern capitalism but last time we had this process which are spanish flu that in the end of this the end of the 1st world war back in those days there were imports and their exports but you didn't have to buy in the modern mass of imports to produce what you're producing in most countries the supply chain was very sure the manufacturing system was just off to the invention of at the

invention of the model say for that and the beginning of the production line and back in those days what you have is enormous stocks at sod the factory which we wish all use for the manufacturing so you have if you thought. now with gone with the damning brought in the unit remarkable i different proving manufacturing quality go to the just in time system but what it means is you're incredibly bendable on precisely time deliveries that you don't hold any stocks and on top of that american capitalism since the not in a.z. has been taking advantage of cheap labor chiefly in china of course and really cutting production to world countries so they are going to thing lobby i have a lot of thought and i'm going to damn it the off of an american product is made in about 30 countries most of which is china now if you can no longer transport goods because very sensible raisins same and will refuse to board ships where they're going to be stuck in confined spaces with 50000 people want to have the virus well

it's time to get to the other side they're all going to have the virus some of them could deal and it is shit at end up doing a drastic drop and crashing into the into the wall on the line because that happens dead in that situation the supply chain breaks down completely and manufacturing concise it isn't just that china at will start manufacturing because its current gaining its own people that will say sort of the american production system and me goes out be produced as well so this is a classic indication of what the same to late goals the fragility of modern society was on a society which was when everything was going smoothly and if all its files assessed of any for jodi and we're going to see the impact of that and i doubt anything goes anywhere around that we are going to see it right down the supply chain steve cain thanks so much for being on the cars report thank you max tried to talk as i said it's a terrible topic but let's get what out and well that's going to do it for this episode of the kaiser report with me max kaiser and stacy herbert want to thank our guests

dave kane check out 6 his patron at page 3 on dot com for profit steve king homeschool yourself. get smart and so like psi max kaiser stacy herbert saying by all and check us out on twitter earth kaiser report.

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and very well can see you you'll want to know since last. former army intelligence analyst on the whistleblower chelsea manning days in hospital after attempting suicide in jail she's been refusing to testify further when the u.s. government's wiki leaks probe. europe struggles to find a common approach to tackle the corona virus outbreak which is now classed as a global pandemic by the world health organization. could be. used as a pundit meat. and experimenting with explosives in britain can be unlawful also the supremes cortically is a man of terror related charges we discussed the ruling. you know it was just experimentation it was just learning as the supreme court said you know self learning.