max kaiser this is the kaiser report you know in these troubled times are millions of fans all over the world are clamoring for more kaiser reports 3 a week is not enough they're like we want more we want more well you know it's possible but you have to make a big noise and let the people know that you want more max and stacey more kaiser reports yeah they said max we are reporting from our headquarters in the coronavirus zone and you know what the national debt is past 24 trillion dollars and the past week i remember back in those innocent balloon boy started days back

in 2009 when the last crash when it was just 12 trillion 6600000 unemployed last week that's on top of the you know millions others in the previous weeks 5.5 plus it's 3.6 plus blah blah blah so now we have $17000000.00 unemployed that's over 10 percent unemployment rate and of course during this chaotic time during the announcement of the new unemployment numbers we saw the fed introduce some new sort of $2.00 trillion dollars scheme whereby they're going to buy high yield the bond e.t.f. i junk debt i.e. well the fracking debt all that fracking debt that's blowing out right we knew the fracking industry was going to go belly up and that it would require a government bailout we said that was a 100 percent guaranteed and we were right you know us thing but mainstream media not only are they forced to be broadcasting out their basement but only a channel for the u.k. now bankrupt and for us to be on the street and speakers corner blabbering about

whoever they may gather in the times of social distancing but we've been right we've been right for 10 years right about fracking right about the fed right about money printing right about the stock market right about the gold market right about the silver market and we would go. in one of the world to tell people to buy big point a dollar back in 2011 we made hundreds of thousands of big coin millionaires in $100.00 different countries and that's why we're considered to be almost the adam and eve of bitcoin i think he coined that term on twitter but also on twitter i found this tweet from matt stoller and he's looking at you know we're in the middle of an election theoretically that might happen in november 20th 2008 and especially biden versus trump and you know you would think during the sort of times the democrats would present plans and what they would do as opposed to what trump is doing well progressive simply cannot internalize that a massive corporate bailout just occurred that it will shift wealth and power upward and that their leaders warren and bernie who got popular oppose and wall

street supported it progressives have chosen to be irrelevant this is what i don't get about the progressive media so let's talk about jimmy door amy goodman. juncker sync juncker and to some lesser extent joe rogan right they look at these numbers and they look at what's happening in the economy but they make no connection to the federal reserve bank of money printing jimmy doors never mention the central bank the federal reserve bank ever ever ever ever and yet the progressives if they want to be progressive and they want to progress be dialogue forward they need to talk about the central bank that is the key component of the global economy the american economy and the key crisis that we're experiencing today so not to mention it is willfully ignorant exactly we have 2 different categories happening that government in the treasury and on the federal reserve and basically neither of them have oversight and they're pouring trillions of dollars

to the corporate headquarters of huge corporations not the small medium sized enterprises that are being funneled into these crazy sort of online systems that don't work but the. major corporations the multinationals those that are getting bailed out and the big banks and the ordinary worker that's by the way that you know the left wing party is supposed to speak on behalf of their stock on trying to file unemployment benefits and those unemployment benefits are built on cobol which is a. you know a software program written back in the 1950 s. and there's only like a handful of people in the united states that are still programmers in cobol so systems are going down across america and people can apply for unemployment online they have to go in person stand amongst thousands of other people trying to file online right so as the unemployment rate is now projected to reach 30 percent in america higher than the great depression the stock market's up 30 percent from recent lows and the size of the central bank balance sheet has expanded by

trillions so the question is which came 1st the expansion of the central bank balance sheet or unemployment what is the cause what is the effect as we've been saying on the show for 10 years central bank balance sheet expansion causes the unemployment because it causes the deflation that causes the economic duress that creates the unemployment the central bank will say point blank we're trying to fight deflation by printing money and yet they caused the deflation by printing money oh in the stock market happens to be up 30 percent oh my and the top 110th of one percent just made a few more $100000000000.00 it's an accident that's a progressive thought understand that they don't or stand that taxes and employment are not necessary as 0 percent interest rates and if you can print them borrow hundreds of trillions of dollars at a clip you don't need workers you don't need taxes americans pay $3.00 to have

trillion in taxes last year the fed printed 6 they have trillion in 10 seconds last week right you don't need workers you don't need employment they know if employment rights went to 100 percent unemployment the stock market would be a 4050. on the doubt of course because any time the progressives do fight and they fought tooth and nail to get some a $400000000000.00 package in for the ordinary person in america apparently that's not going to a lot of that money one even arrive for months from now but immediately the fed can create money in credit for all of these bankers but every time they succeed in getting 400000000000 for the ordinary joe bag and donuts then the bankers go well we can't disrupt we need to get at least 10 times that bad we need to pull quadruple quintuple 10 topple that well it's designed to disenfranchise every american who's not a friend of the central banks until we have a peasant class like evan saudi arabia and a prince class like they have in saudi arabia jamie diamond is

a prince and the central banker is on the bankers on wall street are the prince class in this neo feudal period and everyone else is part of the peasantry what you call the middle class are becoming peasants they're living out of their trailers they're getting dog food they can't scrape enough to get by they're like haitians trying to pick worms out of dirt and that's the way it's designed we also designed the situation in haiti of course right whether it's disenfranchisement of haiti or bombing in iraq or the war in afghanistan or the attack on south american countries on the quds that's all off broadway production of what became a broadway production here in america you know people cheered the bombing of iraq again mainstream media m.-s. n.b.c. rachel maddow c.n.n. yeah let's bomb iraq not realizing this is a off broadway production of what's coming to america within 2 or 3 years now we are experiencing the full frontal attack of our government attacking us now you're watching many shows across america on cable news and on the me on the networks as

well people are reporting from their basements and their attics and their mom's bedroom and what you're seeing is that they're still gossiping it's all essentially you tube channels of people gossiping about various. little figures whereas they ignore the entire elephant in the room which is the fraud that is ongoing here we'll show 2 tweets about the federal reserve bank and what they're doing on behalf of their clients who are the big banks on wall street the biggest experiments in monetary history central banks buying government bonds like crazy to monetize the public debts will not work indefinitely no one can say exactly where the tipping point is if the balance sheet exceeds a certain level inflation expectations will skyrocket and you see in the chart there that top line is of course japan where the central bank balance sheet as a percentage of g.d.p. is 109.91 percent the fed is that blue bind on the bottom and they're at 26.75

percent of g.d.p. 43.68 percent the bank of england merely at 21.7 percent this idea that there is an endgame to be that monetization that they choose to call quantitative easing is problematic because in a world of 0 percent interest rates and then for the credit they can keep buying government bonds they can keep buying junk bonds they can keep buying stocks they can you know in japan the amount of the balance sheet of the bank of japan is in excess of the g.d.p. of japan and they've got close to 300 percent debt to g.d.p. as a country america on that basis combined other 15 trillion dollars worth of bonds and stocks and the endgame is not a collapse due to policy and an economic model that's unsustainable the end game is that you have a prince class that owns all income producing assets in the country and you have a pauper class or a peasant class that is living in the dirt it's neo feudalism by design it's

not a mistake in policy and the answer is it has to do with understanding that the central bank is at the center of it all the answer is watching kai street. for in knowing about gold silver because you don't need to participate in the system you will be a loser in the system sure keep on turn tuning into cold air and the view and rachel maddow and get your bread and circuses and say bull bernie bull chomp and that might make you feel better it might help you get through the next hour but how do you get through the next decade the next 2 decades and you're gonna have to step away from the bread and circuses and you're going to have to wake up because what they're doing is they are buying junk e.t.f. i didn't think they'd go there said john briggs head of strategy at nat west so even the bankers didn't think that the central banks were be so brazen and helping them out like that well you're absolutely right the only way to escape this is

gold's over a big line because it has already made a move from a $1.00 277008000 based on its anticipation of this fraudulent behavior by central banks it was designed to fight central banks and it made a move from a dollar to the $7000.00 way 210-0001 its way 240-0000 it's doing exactly what it was designed to do gold is down not only making new all time highs against every major currency the world but now about to make a new all time high in u.s. dollar terms so gold is not fools gold is down creeping higher plus l b m a in comix are caught short gold and they're about to go completely bankrupt. well those 2 entities do exist in a paper world controlled by the central banks so they could print money as much as is required to deliver because they could do force majeure and not have to deliver physical gold but again you know bitcoin as you mentioned what went from a dollar when did it go from a $1.20 as i said during those glory days when you know the biggest hoax on earth

was balloon boy now we have the hoax of these bailouts and stimulus that are total hoaxes they say they're helping you here's $400000000000.00 peasants you might not get it until next year in the meantime we've just created 40 trillion for bankers because of the notion that how dare somebody even think of helping the peasants so right back to coin anticipated this that's why it's a multi thousands from a dollar and now as more people realize wait a bit this big quite thing was actually right mike kaiser report was right then start to make a move 280-0000 up 240-0000 we told you 1st and stephen colbert is in his basement and looks like a frickin trailer park trash on talent an unfunny idiot a cut state job for much more coming your way.

that is just every small cycle don't put away your 18 months of.

the really peace is fine it can be said you should be hooded if you don't believe. you do a decent a cool shops walk next you don't. get a solution safety feature and you move on to the sort of the. welcome back to the kaiser report imax guys are time now to go to mark hughes sco bargain craig capital welcome back mark max thanks for having me always great to be with you this is a once in 100 year event i think and so just walk us through how you handle that your frontline money manager guy so this hits what happens i appreciate

the placing us in the front line and i i definitely would would not put us up there with the the angels and saints on the true front lines and in the health care situations but also you know it's the food delivery workers it's the food prep or prepares it's the people who are cleaning up and keep in building safe then and germ free so that other people can do their job so they're the real front line but but i like the fact that look we do have to keep capital safe and we are at there's a big 'd threat to what we do in terms of the asset management business today as any time i've seen in my career in my lifetime we probably have to go all the way back to 1930 to see a similar type threat and sure we'll talk more about that but the real issue today is it's not the virus that's the threat we've got lots of viral threats around the world some that are actually worse than coded it's the response the unprecedented

response both to shut down the global economy but now worse the response from fiscal and monetary stimulus around the world that is i think sowing the seeds of a greater demise unemployment rate of skyrocketing and some projecting at the rich 30 percent i think of the depression of the 1936 at 2 maybe 25 percent so an unemployment rate that's higher even than that time however there are some key differences back in the thirty's we had a gold standard we had also. we did not have the kind of activist fed that we have now that is the buyer of 1st order instead of being the borrower of last resort we also have 0 percent interest rates which are unique almost in history we also have negative interest rates which are definitely unique in history so when the unemployment number comes out and it's skyrocketing by 30 percent projected but the

stock market goes up by 30 percent. that's you know that's an interesting situation so it's only made possible by 0 percent interest rates or when you cast kerry said recently at 60 minutes infinite q.e. infinite amount of money printing so that's different than the one $930.00 s. or is it mark it's interesting that you and i seem to get together on these historic days right we were we were together when kashkari made his famous infinity comment and you know i told you about this hash tag q.e. forever for a long time and i think you need made at the label of our last show and here we are again on this historic day where i tweeted out earlier that we're at the tipping point capital t. capital p. where we've now turned the dollar into toilet paper right we basically said it doesn't matter how much we print we're going to keep printing in till the bleeding stops and i think what we're experiencing and and the reason i'm not sure it's

going to work and why i do think we are at risk of a greater depression is if you think about how commerce works right there have to be people employed there has to be a volokh city of money and if i have a dollar and then i go get my haircut and then the haircut or goes out and buys a shirt the shirt seller goes in and gets a meal and the restaurant tour goes to the butcher and the butcher goes to the hotel then that money is actually circulating the economy and we get g.d.p. growth we get profits growth and we get real. well if i just printed dollar and it's sitting in a bank account somewhere and it would print another dollar and is just sitting in a bank account somewhere actually all we've done is reverse is decreased the value of that currency by half because now we have more dollars without any increased circulation and i think that's where we are in that if you go back to the great depression from $129.00 to early 19 $130.00 we fell 30 percent and then there was

a series of events where the president hoover at the time came out and said everything's great ever is going to go back to business america is awesome we're going to america 1st we borrowed that from the german we're all homeland and all this great stuff was supposedly going to happen the market rallied 1820 percent oh and then we realized that wait a minute if we didn't if we put up barriers to trade like the whole the smoot tariff bill and we you know go against immigration then we do all the things that slow economic growth and slovo loss of the money we destroy capitalism and what happened we all know the end result we went down another 550 percent over the next 3 or 4 years and we turned a garden variety recession into the great depression and you said you know we didn't have 0 interest we actually did we also had q.e. we also were buying our own bonds because back then we were an emerging market run

by a gang at the mafia was basically in charge no would buy our debt so we started buying it ourselves so q.e. is not new 0 interest are not new we had all during that you know great recession which turned into the great depression and i fear we're on the verge of that again if we make bad policy decisions what's your portfolio mix i may not get too technical here but you know a classic portfolio max bang stocks bonds cash a little gold and you introduced really to the institutional investors out there the idea of getting off a 0 with bitcoin i think that's probably held up well for your client. took that advice because it's become one of the least volatile assets to hold and this time certainly less volatile than oil and so how do you handle this on the on the portfolio allocation side they just raise a lot of cash or you forging ahead into buying the dip or what how do you position what we're doing is the same thing we've been doing since january of 2018 you're right before valma get the 1st one which the recent bout of volatility makes bomb

again look like a you know a bump. so what we started doing back then was you said look we fear that hooverville is coming and i actually wrote a paper on it 3 years ago when when trump was elected saying look he was just like hoover an inexperienced president who had all these bombastic ideas about america 1st and how it was going to be so great but what he laughed was leadership and experience i was worried that we were going to have a repeat of hooverville and the great depression and so what we told clients was we've got a different way of looking at the world and i took a lot for this in fact people would say you know you can have clients leave and i said very clearly which i took a lot of for to as i said i'd rather lose half my clients than half my clients' money and i think that's really true so back in january 18th we built a portfolio and it looks like this got 6 pillars so about 15 percent is cash

because cash is king in this environment another 15 percent in bitcoin and we'll talk more about that i'm sure another 15 percent in a proxy on bitcoin mining so the best i could do there was a m d. then had 15 percent number 2 markets because i thought emerging markets where if you're going to own equities you want to own the cheap equities emerging markets were cheaper 15 percent in long treasuries and then 15 percent in hedge equity in rerun a hedge equity portfolio here it's long shore is actually only down about. 3 percent march down 2 percent for the year so if you look at that portfolio over the last 12 months and why do i talk about the last 12 months well 12 months ago i was on c n b c and was talking about this type of portfolio and literally got laughed off the stage you know how could you own big corn for clients and how could you be in bonds and you don't you know stocks always be pawns well it's actually over the last 20 years long bonds have beat stocks and over that 2 year period where stocks are down

about 5 percent that portfolio that i just described is up about 22 percent so that's pretty good people are feeling pretty good about that i think it's unprecedented to have central banks so aggressively buying stocks in the open market they're buying junk bonds the swiss national bank is the more of the biggest holdout of apple stock and right now they seem to be going with donald trump's message that the only thing that matters in this world are people for a one k. accounts and getting that stock market back up higher and if you can borrow all the money you want of their percent interest and you're buying all the stocks you want without any limitations at all and you've got a lot of hedge funds who are front running that action with a lot of money there's a lot of cash out there the saudi while funds huge than the and which in wealth $1.00 is huge there's a lot still a lot of the pockets of trillions of dollars out there if they get into the front

running game and it's by just keep buying these stocks to help the people for a one k. plans is it prudent to not kind of follow the trend there it's such the question max and that's why i love getting together with you as you've always got the question for the time that we're in and you know the reason that is the question is look everything that we've talked about up to this point about how it could be a repeat of the 1930 s. and the great depression or the greater depression that's only one scenario and is sort. says the idea that you can predict the markets precisely is falling you have to think in some mario so it's a non-zero probability that we're in the verge of another great depression there is a non-zero probability that everything you described about the fed and the fiscal stimulus actually getting into the equity markets and pumping up nominal stock price is the key word there is nominal what people forget is that rising asset

prices are not necessarily a good thing and they're definitely not a good thing for the 49 percent of people in this country that don't own any assets they don't own stocks they don't own collectible porsches they don't own fine wine they don't own great real estate so what's happening here is kleptocracy and it's been going on for decades and this is the plan right q.e. was not designed to create economic growth q.e. was designed to impoverish the 99 percent and enrich the one percent and everything that's been going on in the last couple weeks is greater degrees of that you know the idea of m.m.t. a year ago people said well as ridiculous and people like trump who talked about it were stupid well he's still stupid for talking about it but now we're going to live it it's actually happening there is a belief now that we can print as much money as we want we can buy any asset right it's actually illegal as we sit here talking it is illegal for the fed to be buying

corporate bonds and high yield bonds but they're doing it they set up an s.p.v. funded by the treasury to get around it that is that is illegal activity why do we allow it to happen and yes the swiss national bank on the banks japan buy stocks and the fed would like to buy stocks janet yellen is saying we should buy stocks no we shouldn't but they actually do something called the plunge protection team and they operate from 10 o'clock in the morning to 1130 every day and what they do is the primary dealers get their bomb. bought from the fed and then they give the loans to the hedge fund or to leverage speculators or to the bank balance sheet themselves and they go buy equity so look at the stock market every day from 10 to 1130 just go straight up and then we got to meander in the middle of the day and then from 2 to 3 o'clock it goes up again because that's when buybacks happen now buybacks are down so it's not happening quite as much but then it 330 that's when

the smart money trades that's when the institutions trade and if you look over the last 6 months they've been selling they've been distributing not every single day but by and large the smart money is selling and makes it possible that all of this you know cronyism and crony capitalism that is funneling money into the top one percent could make the stock market go up yep it's definitely possible it's a scenario we have to consider well don't forget that at 4 o'clock it's cocktails at paris at hanover absolutely all right mark hughes go thanks so much for being on the kaiser report thanks max and ecstacy love being with you guys and can't wait to have a cocktail with you out of isolation so we can have a virtual online anyway that's going to do it for this edition of kaiser report with may max kaiser and stacey abbott want to thank our guest mark morgan to create capital if you want to catch us on twitter it's kaiser reported to lifetime.

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