but this really not silent good on the nation what italians are taking to the kidneys to break the eerie quiet as people think up an instrumental simply burst into song as you do in a flash more blue to lift the spirits while stuck at home. sort of good on you could live to see that the testing times keep calm carry on as they say rev you're watching us around the world specially holed up right now at home in quarantine or something like that thanks for watching us take the time that we appreciate it have a nice weekend for me kevin 0 in the rest of the check out of social media. news for me in just over half an hour more programs after this break. but as we talk about trump he's gonna demystified so political space if you weren't clear before like these folks are no better than us so you know i you know you can reach out to friends say you know take responsibility maybe run for office at the

end of the day you know i don't see how we move a lot of system where these people get away with you know misrepresenting us why not step up and do it yourself. max kaiser this is the kaiser report the pandemic it dition special times require special reporting of course because a report has been anticipating so much of what's going down around the world stop a big surprise for those of you who've been watching us for so many years is that

right stacey max it is a continuation of the pandemic and the pandemic response in a pandemic situation we also have the oil wars going on allegedly some oil wars we have russia versus saudi arabia the price crash you know it kind of started with when the opec plus when they met you know saudi arabia essentially and russia and russia decided not to cut any production based on the decline in demand out of china and elsewhere but also right after that saudi arabia offered up to a $10.00 discount per barrel just because i guess. they'd been solomon got a little bit upset and threw a temper tantrum so that's what happened there but you know that seismic sell off a 30 percent and then followed by a like 101213 percent rise and boom bust and boom bust i thought this was an interesting tweet to kind of look at the whole situation is from roy so we went to the last episode and he was so prescient about this pandemic situation when he

predicted sort of a pandemic basically that negative rates were signaling that he predicted that last june or july he says i think we have just witnessed the end of the petrodollar system non us countries will soon see a new unit of account medium of exchange and store of value a new bretton woods that will not be decided in america or by americans right well all the key players necessary for the. are involved right now saudi arabia russia and united states so the petro dollar of course was established in the early 1907 days with america and saudi arabia when america defaulted on its sovereign debt remember richard nixon defaulted on the dollar just halted on the treasury market and we went on the petro dollar standard because america had to close the gold window could no longer fulfill its obligations to its creditors this was the beginning of the petrodollar era and the beginning of all things everywhere being

priced in dollars oil is being priced in dollars all commodities are priced in dollars they gave america the us empire of debt it gave america the world reserve currency it gave america what's called senioritis which is basically they get a cut over every transaction ever done anywhere in the world every coil transit if japan wants to buy all that the buy dollars 1st and then buy oil for example so they have to give america a commission they get a cut that's a huge source of revenue for america not with saudi arabia and the us have been at loggerheads now for a couple of years that relationship has been strained and so saudi arabia as i think you're correct they threw a hissy fit they said we're going to just want the price down by $10.00 for oil because our cost of production is not even $3.00 a barrel and so i think they thought everyone would just step in line but then russia said whoa whoa whoa whoa whoa whoa hold on a 2nd they looked at the numbers and i said wait a minute our cost of production is actually higher it's like $7.00 but america has

$50.00 so and we have no debt the saudi kingdom has a huge amount of debt and we have a lot of gold we can actually participate in this global geopolitical oil poker game very very well we've got 3 aces here and now i think roy is correct i think the u.s. dollar loses its status as a unit of account and world reserve currency something else is coming it won't be u.s. dollar and it could be another country's currency or another consortium of countries developing some other currency backed by somebody else's oil or gold except for a. just to make clear that in russia the breakeven point is about $15.50 because there is an $8.50 cent tax on every single barrel so you have a cost of production is about $7.00 but they add in the cost of the tax just like in the united states about $50.00 is the break even and that includes the tax of about just under $7.00 obviously since we went on the u.s. dollar standard and we were untethered from gold then we could control everything because we could print as much debt as we want and nobody really knows how much

debt we have and that's why we have the repo market situation that's why we keep on having boom and bust that's why we have especially at the bus like radical bust because people are when sort of crisis hits whether it's the subprime mortgage meltdown or now the fracking sector meltdown like people are uncertain how much debt is actually there because nobody knows and now going back to what's happening in the geo political oil space lattimer putin dumps saudi arabia's crown prince mohammed bin salman to start a war on america's shale industry that's bloomberg take i responded with the red queen was at war with shell long before this headline oh right i should mention that as part of the social distancing that we're practicing in the pandemic we've built a studio in an actual tree house slash studio you might hear a couple of birds tweeting in the background because we're living with the birds in a tree to practice good social distancing during the pandemic carrying them as

a good sign because this is a sign that spring is here and perhaps we don't know but then perhaps the couvade 19 coronavirus could disappear. yeah so with the shell industry in the us like i pointed out recently you know there's no reason why russia should subsidize american shale industry if there were russia's been saying now for 20 years you know let's be friends let's do business let's grow together and about america needed a scapegoat. war hillary loss and 2016 and everything that's gone wrong with the u.s. they like to blame on russia and now they're in a very tough spot because russia is not going to be lobby to help them bail out america's shale industry ok fine i mean that's russia's position i think it's a smart position and the u.s. as you point out the shell industry has been a negative cash flow negative energy industry since its inception shale ministries never made money summer made profit doesn't even make revenue but let alone profit

the amount of debt required for shell is all was the interest on the debt is always been greater than any any of the any of the cash that's come out of these things and it takes more energy in for a shell rake than energy comes out its energy negative we cover that extensively on our show of course we then got blamed for a russian gay and d.n.i. report says you know that because guys report talked about the shale industry but the markets are telling us that we were right as we see with this headline here crash in energy junk bonds s. and r g 2027 bonds dropped by almost 50 percent following oil price ads that looks like the bond market which are supposed to be the smartest investors of all that they decided that well you know what kaiser report was right all of this time you know a lot of people criticize a big point as too volatile but look at the o.l. junk bond market for the shale industry it's incredibly volatile it's going to go

the way of enron remember enron was worth $80000000000.01 day and then it went to a big fat goose egg the next day worth 0 the shell american shell industry junk bond market's going to 0 because this was a farce this is the shell american shale hoax it was and it's just going to 0 that's all of us do it now going to bail it out print tons of money probably that's just going to make the dollar worth even less than it is right now world markets and jack the price of gold up who owns a lot of gold home. russia also put this into context mohammed bin solomon has overthrew an uncle or cousin he's got like 5000 uncles and cousins who are princes and so he's got to keep that economy stable because he's got 5000 people and his family wanted to overthrow him and replace them just as he had overthrown somebody else i think he's in the process of executing 4 of his cousins around close at the moment you know it's so he has a situation that's precarious there and he has

a huge population that needs to be fed so you've got that situation and lots of debt in russia you've got loads of 4 x. reserves loads of national wealth resurface loads of gold and loads of resources and you know saudi arabia relies on 87 percent of their imports are our exports sorry are our oil and about 53 percent and russia is oil and energy related so they're a little bit my more diverse it should probably be more diverse but in terms of the u.s. and all of this debt like we could we could have thrown it we didn't get a free ride ok we got a lot of free stuff but at the cost of manufacturing and. you know instead of building boondoggles like this fracking which never made sense we could you know we have loads of episodes you can go look at the past episodes where we go extensively into why it makes sense but instead of wasting half

a trillion dollars that investors are lost in fracking we could have built you know infrastructure we could have built high speed rail we could have. spent on you know electric power grids everywhere we could have done something else that would be useful in the long run and then stiff everybody else with the bill you know mostly china and japan that own all our bonds so we could have done something else with it it just seems a little bit ridiculous that we didn't write let me explain. america is run by and glorifies salesman. and europe and the rest of the world tends to respect bureaucrats civil servants there's a big difference so the key to sales is developing urgency to get someone to believe that there's an urgent reason for them to act for them to buy what you're selling in the case of how did america get wrapped up in the biggest boondoggle in american history the half

a trillion or trillion dollar shale fracking boondoggle is because the sail from a wall street bank was so compelling and the pitch goes like this i can sell you a 1000000000 dollars at the shell projects right now by by simply giving in the following pitch stacy write a crisis america needs to be energy independent. because of the terrorists. now that's all i need to say and you're going to start writing checks and by the way we're going to sell bonds of pay 12 percent 13 percent 14 percent you're going to make a killing right in that stupid cell technic unfortunately the joke well there is some value of course i think in for national security for any nation to have energy security any nation to food security and that as well it has no food security they import everything puerto rico imports everything that leaves you totally vulnerable to a global debt market so anybody should consider that but they haven't been honest and

a lot of people have thrown money into it how they said this is like a war bond this is a national security bond this is an energy independence bond you know you might lose everything but we're going to be number one no no no. it's energy independence was the sale and the but energy independence could have come from the same amount of money by building renewables sure the money that went into junk bonds for fracking could have built a sustainable renewable energy infrastructure in america of solar wind hydro well i did because the pitch for energy renewable energy is not exciting to a wall to a drunk wall street broker hangout of harry's bar in wall street it's not exciting to hear about renewable energy it doesn't get them and it closer to having exciting times at night guaranteed by the fracking salesman well that sector is seemingly dead now and finally i want to turn to you with the saudi aramco of course because you talk about bankers and that was sold to the public markets just recently oil

price melt down saudi aramco has lost almost $500000000000.00 in market cap from its all time high in december nobody knows the oil sector better than the saudis and they were dumping at the right time of course this is very volatile now up and down but $500000000000.00 is. a little bit more than. the loss is cumulative and the facking sector by the way right well imagine reisa bog earlier he said when that thing spike that was worth almost 2 trillion that this is the greatest short of his lifetime once again he was right this is it's a short sale today it's going to. sound he's a picture of oil anyway we're going to take a break and when we come back much more coming your way.

you see every passage of the death of something all passages involves some kind of conflict in between where one is trying to reconstitute the old way of doing things but it doesn't work as a therapist i'm often working with people in those in between so again the key is how do i find my path through all of this and where do i find it it's in those moments we have to start beginning to trust what is coming from within. welcome back to the kaiser report imax guys are time now to go to matt firesign

author of plan a poncy welcome back mitch great to be here matt. already i've got an interesting introduction for you here today the whole idea of plan a ponzi of course goes back to 1987 crash and the beginning of the federal reserve put under alan greenspan the idea that the central bank as an act of a central bank was always going to come to the rescue because ultimately this was one big enormous ponzi scheme now this past week or so we've had the death of mach's on the sea though a famous actor and his famous scene was playing chess with death in the movie the 7th seal i would like to possibly suggest that right now the policy of bailing everybody out from the central bank is similar it's like playing. chess from the movie the deerhunter where it's russian roulette

essentially and eventually of course the end is the same complete obliteration mich is this russian roulette basically gone wrong and the constant bailing out of central banks around the world as part of this planet ponzi that you've been documenting for so many years mitch you can never see her on the back you know and all that happen is the enormous amount. of increased exponentially so now the federal reserve is a panic. move coming in and they cut interest rates by 50 basis bank followed suit by cutting rates their bank of japan buying all equities central banks think they can make the coronavirus the. away by buying equities spending more money this is a fallacy it'll never work the problem that we have that we need to identify the fly shock and demand shock simultaneously the same time coronavirus was the

trigger it was. in the tinderbox that the central banks around the world have homes with liquidity aka petrol all high school object to all and now it's gone up in flames we're seeing a whole back in stocks right now i think we've got a long way to fall towards the bottom it's not a good big you lie good bye. i think valuations were way too high we've discussed this before buyouts like word and credit will be the one wall words we've already seen corporate bond market he's off a bit but i think things are going to get much worse there's always somebody tide goes out we're going to see. the precipitous decline in oil prices it's going to accentuate the collapse of the ponzi. shell oil that.

i think we've got a lot of components here look at right it is a big one and i think the lack of liquidity in the markets want to get involved those 2 is going to make the decline even larger and more losses even larger which will cause bankruptcies in a cascade of bankruptcies i mean italy is a lot them martial law they go or trillion dollars in debt they were never going to repay before this now the country is closed for business and as we know their g.d.p. for the past 18 years has been. the worst in the world. so but their debt is the highest in euro problematic many different. view now we've got to see about a way out of the problem you know like the bad. larry summers and the same people that created this mess bankers want to tell you it's all. coronavirus but it's

absolutely not. moral hazard caused by the global central banks in april and reckless lending practices to companies organizations and. entities were not we're not we're that's why we're seeing your lowered interest rates again and this ratio of the middle class we've seen wealth inequality and shatter new record right let's talk about this idea the difference between a demand shock and a supply shock so everyone is familiar now to say wall street bankers with a demand shock and lowering interest rates and flooding the market with more cash cures a demand shock there's no absence of people looking to get on debt and expand their credit cards and expand their debts on their balance shave if we just make money

available for a as far as this global pontius game they will always be people lining up to take the free money but this is this is different now this is as you point out a supply shock when the supply lines from china are cut and stuff is not apple store you can't print that you can't you can't solve the problem by printing money because it doesn't matter the goods are simply not there mitch they think that they can buy all the 3 d. printers and create stuff i think is absolutely ridiculous what they think i mean with the supply and when you think about it this was the whole idea behind the obama you're where they are. such a good idea so they outsourced 98 percent of the inner chemical components antibiotics to cheaper production in china so we are we are actually relying on china to buy the necessary men that we need and we could cut off any time

production around the world shut down and everybody throw my. beholden to china that's not a good position because the politicians in washington strom and westminster strom were too busy with other matters that were not relevant not helping needed by the all the lying there are pockets rather than ensuring that the people they represented which they did represent would be out of harm's way should we have the siege and he planted which we don't this is a much larger problem we've got critical infrastructure industries that now are all outsourced to china where this problem originated as you call it the ruhani virus you're a race right well i mean i don't know why they call lyme disease lyme disease because the start of the lyme connecticut and most diseases are named after their origin where they come from but let me ask you this because you're in the banking business

and i been in and out of banking and finance for 30 years and so i'm curious what your thoughts are because they will come back with some kind of package of financially engineer solutions and we've seen negative interest rates in the last few years that was a new thing that was invented just a few years ago it had never existed before what i want to get a bit reach into the bag of tricks what kind of programs are inventions well they come up with trump is proposing a cut in payroll tax that seems very minimal going to do much to get steve a new kitchen a former i believe is a goldman sachs guy he's a financial engineer they will charge some outlandish absurd financially engineered solutions to this any and can you give us any idea what might be cooking in the back rooms i've mentioned this before and it's pretty much happened in europe and throughout asia and the bank of japan which is the major. purchaser of the e.t.f.

products is exchange traded funds stocks and national bank fine stocks e.c.v. will start buying stocks and save or buying stocks or buying on right now that it's not a long time from now until the fed says well we're going to start buying equities so this is a problem because it's not capital with. we're all we've got to intervene and the need to lay price action you know the buyout of 2 pennies 5 l. of the mh with our new i thought negative you're going to bond markets so that means the e.c. we pay rates is rich is made to 5. 1000000000 dollars in low how does that help main street it doesn't this the big problem is that self interest you don't care what happens to main street does burn down long as they get paid what's next thing to pull out of the bag of tricks you know i told you you get

a marginal marginal return for that increment you know now they have to spend $3.00 to make it makes no sense whatsoever they're burning the house down they don't realize they are burning down and we're not and very well right you mention the e.c.b. financed the takeover of tiffany's by showing a negative response effectively having the public financing kleptocratic concentration of wealth but what about the fracking industry it's never made any money if the cash flow negative energy flow negative and there are i think a trillion dollars of the junk bonds associated with that industry how they're going to handle that manage you're going to have a cascade credit fall and and oil prices should go much lower because you don't have demand we have and we're going to have an economic recession which we're probably in already or an economic depression which is going to push prices even lower now there's no war between saudi arabia and russia on the oil prices saudi

arabia's plan was to drive all the shell oil producers back from it and they will succeed if oil prices stay down here then they'll be able to control the price if you like opec again dries out is all this healthy for go bankrupt we need 200000000000 worth of bonds starts to fall thing and we'll have bond armageddon we've been tracking. for a number of years deutsche bank they have a lot of exposure to these bankrupt energy companies a sarnie a very troubled bank and by some measures you can say it's an insolvent institution is deutsche bank going the way of enron in the near term midge i thought you might have a lot of problems at one point they're off balance sheet derivatives 70 trillion so germany going to bail them out i'm glad the u.k. was smart enough to write and we see you but all the 27 other members of the club will get to pick up part of the bailout which is a big problem but i think the german government will try to i lost. doing the last

couple of years the problem is you see the repo market added to 'd 100000000000 it's still functionally broken recall mark doesn't work any more and they will tell you why. discount window or borrowing the repo market it's a big secret what we've got to do is and the federal. not a federal organization the fed got nothing federal government and it's not a bank we've got to sions because they're just wrote have fun right we've got about 20 seconds left one quick question. if you can the petrodollar this is the relationship between america and fatty arabia we don't have time to get too deep into it but is it over well i think that's over but when joe biden gets elected michelle obama is right we're going to see things really. oh wow there it is misfire stein calling joe biden michelle obama when ticket and 2020 you heard it

right here in the cars report mention thanks for being on the kaiser report thanks for having that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert want to thank our guests mentioned last time author of a seminal important and translated into many languages planet ponzi try catch us on twitter it's kaiser report and select on. so what we've got to do is identify the threats that we have it's crazy confrontation let it be an arms race is on off and spearing dramatic development the only posts really i'm going to resist are they'll see how that strategy will be successful very critical time to sit down and talk.

good food descriptions sound up the even for the owners so how to choose his pet food industry is telling us what to feed our pets really more based on what they want to sell us than was necessarily good for the pet turns out food may not be as sophie as people believe and we have animals that have you know diabetes in arthritis they have auto immune disorders allergies we are actually creating these problems and it's a huge epidemic of problems all of them i believe can be linked to fairy simple problem of diet and some dog owners so heartbreaking stories about their pets less treats the larger corporations are not very interested in proving or disproving the value of their food because they're already making it a $1000000000.00 on it and there's no reason to do that research.

to unleash the full power of the federal government of this effort today i am officially declaring a national emergency the u.s. them stepping up. which could cause the u.s. . and in other news. for the 2nd time in a week even 5.