max kaiser this is the kaiser report and this is central bank monetary policy yeah i get it to get. stacey. more money they might call it it is so much money m o a r money more money and you know it max now some people say all that money printing is going to cause inflation and i devalues everybody else's currency but they're

offering us a bargain here u.s. treasury expects to borrow $2.00 trillion a net marketable debt in april to june quarter $3.00 trillion dollars more than estimated in february to put not trillion dollars come on down to the fed's bargain basement to put in dollars order now again 6 trillion dollars more in 6 months or now just 6 trillion dollar war in 6 months come on down to the fed broader base with high of j.p.l. i print money like a man to come on down to the feds bargain basement i'll give you a trillion dollars right now because of all baseball cards gets a pulse of or you've got some old rags that round the house will give you a $1000000000.00 come on down to the printing shop right now. you know you might want to this is christina guards money printing go to christine like that well just ridiculous to look at than the one most soon to imprint how do you know how to rid of.

all of movement is all of that. you. 7 can assume. we know that your french is not up to par but we're going to say i have $100.00 euros right on my jacket my velvet jacket i'm feeling flush unprecedented the u.s. expects to borrow a massive u.s. dollar 3 trillion or 14 percent of nominal g.d.p. during the 2nd quarter alone current outstanding public debt is now $25.00 chilean dollars i think we're about halfway there in this room kaiser report never fails to deliver the goods you know we've been saying now for a few years that ultimately they're going to $100.00 trillion dollars japan's already had on a percent debt to g.d.p. their fed's balance sheet kuroda their central banker has already taken their

central bank above 100 percent of g.d.p. in terms of debt that's buying a lot of junk lot of assets so america 6789 trillion dollars they've got another 60 trillion to go the globe is set to go to 100 percent g.d.p. debt to on the balance sheets of the central banks so you know there's $100.00 trillion dollars to go that stock markets are booming in particular sectors it's particularly in the banking sector a member of the p.p.p. program from the feds it all went to j.p. morgan 1st they took their cut which was substantial like 20 percent or more and then whatever was low. over they dole it out to the poor service and peasants in america here for it's like you know people indulgences give us so we'll give you $10.00 if you give us $50.00 in banking fees says jamie diamond i'm the pope of bad money i'm the pope of fia jamie diamond my god what

a crock well you know they continue to print apparently the u.s. deficit the budget deficit will hit $4.00 trillion dollars this year i remember the shock only just recently in the last few years here on the part of when the us budget deficit hit one trillion and we were like oh my god like this is the end but apparently it's going to go to 4 chile and that's why they're borrowing 3 trillion but they're saying all of this infinite fiat's is going to cause infinity war because let's look at this central banks pandemic battle could stress into it because we want to help you the ordinary people who are not until millionaires so we're going to call warren buffett and say hey warren we know you own 10 percent of buffett deals over the past 30 years you'll find a similar quid pro quo in virtually all of them it's all inside information inside information is the hardest. crime to prosecute of all major crimes and their way to get around it are almost infinite and that what you just described is one way to

get around insider trading law and buffett dough is having trouble because he helped fuel the rise of this monster of the fed and now it's attacking him they say like the frankenstein proved you know the movie frankenstein is about the mad scientist dr frankenstein the monster had no name so dr frankenstein or in buffet created the monster created the fed this nameless money printing robot contraption that is putting everyone out of business and nobody can stop it but also in the last days of empire as we've catalogued here and chronicled here on kaiser. poor for the last 10 years you do get hyper partisanship and we're having hyper partisanship and warren buffett is a well known democrat and he sponsors democrats he clearly doesn't like trump and therefore he's not getting those calls steve menuhin is not calling warren buffett to say hey what would happen if we shut down the airlines clearly warren buffett

who is that the ultimate insider the infinite fee insider he had no idea this was coming because remember before he dumped all his sheriff's he bought more delta shares 1000000 on february 27th so he clearly was not given any warning about this and that's that's something that we need to dig into a little bit because you're saying in this case due to political partisanship he was not tipped as he always has been or usually is and this would make sense then in retrospect because he dumped those airline shares like a petulant child yes he had just bought delta a 1000000 delta a couple of weeks before at an all time high of my debt and then suddenly because he wasn't tipped on the inside information he became a brat and said well i don't care i'm going to blow it all out and i don't care who's hurt the hardworking men and women of america the hell with them he said on his conference call he still believes in america while he stabbed in the back america and now he's losing horribly his reputation is trashed and finally max it

gets to the question at what point are we worried with just how much of a role the fed is playing said catherine judge a columbia law school professor who studies financial markets if they are the only actor and people are worried about liquidity access to finance how much pressure comes to bear longer term it is disconcerting. how much work they have and not going to stop as we would say macau support for years they will not stop until every last stock and bond of piece of property in america and other places around the world is bought by this private consortium of bankers called the federal reserve bank and we are now in into neo feudal times mixed with a little soviet ization to give it some nice. flavor well then take a break and when we come back myself and plucky and stacy won't be here it'll just be me and a guest don't go away. the

bard is the in haiti will you please do you think this is. more of an operation in dying water some of the wealthier neighborhoods it's been far more contained and the numbers are much lower than some of the more a neighborhood since our city. if anything we're working with can source outside of the state because they're just so 'd if they were here so i think that it was.

bucca back to the kaiser report i'm max keiser time now to speak with lawrence apart he is over there at the equity management associates you can follow him on twitter i follow him on twitter he's got a lots and lots of really good stuff to find out all by his words on hard money wisdom accent or a large swath come to the kaiser report thank you max honor to be with you guys are next it's basic for years i said before you guys are the o.g.'s of sound money so it's i'm honored to be with you now call while already let's get into it sell a large you write in your latest newsletter of the rubicon has been crossed and the u.s. government does goes direct with helicopter money elaborate on this what is helicopter money in this case and what happens from here sure as i'm sure a lot of your listeners know i mean in 2008 they started increasing credit and printing money and we also i print place which follow and we were wrong and some of

us suffered as a result of that what they did was they really plug the hole that created by the collapse the debt structure and the housing market and money didn't make people the money made into the stock and bond markets so we created a bubble there and he fell and so he didn't although inflation is understated as we all know you can really see the inflation we expected in that particular cycle and the reason is the money it really gets to the people and in this particular case that certainly has changed i found it fascinating that you know for the covert crash you know the notion of of printing money or giving money to people or or being out running large deficit was somewhat enough to so many people and you know enter yang and bernie sanders were considered you know nut jobs and course the minute or the minute the stock market at one percent on. one is threatened with a liquidity in a crash and you see although you know the risk our guys go out of business they

certainly figure out a way to get money to the people and so all of the checks are a pittance you know the direct myself the corporations and and all the money that they're using are renting and distributing that represents the helicopter money that friedman talked about so many years ago on them that were actually your responsibly so it was a possibility going forward and were there and of course once you start that you can never stop and everybody listening us already knows that and so it will only grow and as my good friend dan oliver says this time we're going to get inflation you know good and hard you know it's coming. so and even to the degree we get short term deflation in something like price of oil. it doesn't really matter because i would submit and this is kind of the lazy hans argument that all of blasio is going to create is going to you know protect the money i would submit that what's going on really here is what i call cease which just currency substitution inflation and

if we're going to start to see that you know the dollar's not good i mean if you look at it if you look at the united states government you look at their deficits you look at the balance sheet you realize that it's just completely bankrupt this government is is beyond bakra and so as a result of that it's just a matter of time until people wake up and they realize that having savings that are dollar denominated where they get cash or bronze it's just going to be a very place that they and all it's going to take is a breakout of the gold price from something north of 702-1800 we're still high net into the 200-3000 range and then gresham's law will take over in my view and you know it will be will be on a road to what i sadly think is it is a y. more like out i might i hope they're smart enough to maybe try restructuring or that. looking at politicians that we have in office today i can't i can't with good conscience say that's a high likelihood sorry it's a long answer. actually i want to search right while don so we're going to get into

this money velocity number and chart in a moment but i just wanted to come back to what you're saying there in terms of the expectation in 2008 with all the money printing would be inflation we didn't have that inflation we actually had more deflation and now looking back now it does make sense that we would have more deflation because looking at the big picture lawrence starting in 1971 when the us closed the gold window and we went into a global see after her and see land where all money is issued without backing and so it can be said that all fear out money is debt money it's all brought into existence as debt and so if in fact the debt money which does have an interest rate attached to it is floods the economy and then the need to pay interest on that debt means do you have to issue more debt money to pay off the existing debt money well then you're going to have

a situation of perpetual deflation because you're flooding the economy with debt and debt results and deflation when that debt can't be paid when you have a debt default the u.s. defaulted on its economy on its notes ensemble gaston's and 1971 and they replaced gold with fiat money nonsense and now that defaults 4045 years later. and after going through the crisis of 2008 has metastasized into the crisis of 2020 which is 10 to 50 times bigger so what i want to get into here is all the terms being is inflation versus deflation and these 2 terms are defined differently by different camps out in the economic study however one chart and one graph and one data point has been resolute in depicting

what's really going on and that would be the money velocity chart which i think has really given us a clearer picture of what's happening can you tell us what that money velocity chart is and what it's telling us sure it's a function of how much money is moving through the system and it's been going down consistently lacey hunt was barely making this and understanding what it implies and you know i'd like james church you know that i meet money velocity falling actually if you look at hyperinflation of the past the last the fall in because it's just so damn much money out there that you don't need that you know you don't need a lot of aussie to keep the economy were it isn't and so what you're really done is you shove more money into the system and you know that there are places mary forces going on. you know and we have other displacer things happy to me china that china rice and internet and technology so forth and so as a result you know it's been somewhat masked but as you pointed out different people

view inflation deflation in different ways i mean i think in consumer prices we're going to have a mixture of both i mean i know for example we have a lot of inflation the price of eggs in my town there are 300 percent but we've got a lot of deflation in the price of gasoline and so you know that's to me not what's really relevant in this picture here for all of us and busters i think that the relevant area to look at is is the asset. area and that's where i got to my seasick thought which is laid up makes you want to report which is that you know we're going to what your savings are going to sue me you're really half serious many don't certainly the government doesn't have any but 2 or 3 should have said if you have a legitimate asset where you want to be were treated other going forward basis and i would strongly i know the 2 of you agree that you know the precious metals and pointer are really the 2 obvious places you want to be fair let me just read for a 2nd lawrence because i want to follow up on what comment you made there that the

money velocity shows that too much money is in the system so let's unpack that for a 2nd because we didn't stop us that we're talking about debt and debt is not the same thing as money money is only really gold or bet coin when you have a fact currency that's debt based you knew have a flood of that into the economy then we see the money velocity go down if this were actual money if the money if the free out if the currency of the dollar were backed by gold there would be a natural competition to own the gold to own the money and people want to work to accumulate more money more gold and they would be answer part entrepreneurial and banks would land business says and that money would end up in the system being lent out to new businesses and money velocity would go up because people are competing for gold back or money backed by gold but because it's only paper that's backed by

nothing and the way to get it is to petition the bank to get a bail out and they print it for nothing and it's worth nothing then you get this money velocity collapse because there's no competition anymore and america it's all about positioning yourself in washington and proximity to the fed to get the free paper nonsense money and that's what the motive was. city shows that to your point about gold bullion on the gold bullion is making new all time highs every major currency in the world by leaps and bounds bikes huge huge amounts except the u.s. dollar because the u.s. dollar is reserve world reserve currency and has particular attributes that prevented from hitting new all time highs today but you believe it will be hitting new all time highs in u.s. dollar terms soon and could be heading in between the $6.00 to $20000.00 per ounce level based on what exactly lawrence going to dig into that for us absolutely max i

mean what's going on here is there's a very tight relationship between the federal budget deficit and the growth in the gold price and in my report which i'm sending out for free you can see that already in macro has been a very nice job of capturing that and what you see is that the federal deficit last year was about a trillion dollars this year at a run rate it's running at about 6 trillion dollars so there's a 5 trillion dollar increase and the price of gold goes up 500 dollars for every $500000000000.00 or a $1000.00 for every trillion budget deficit so basically what this math says if this correlation holes is that the price of gold is going to go up by $5000.00 as this deficit i'm full so that would imply $6700.00 gold price you know basis today's price and you know i think it's likely to happen and historically looking at the charts if you overlay debt over

a gold price going back 40 years they always go together except the last few years where they've done an amazing job of breaking that relationship but it looks like that relationship coming back which would imply $6000.00 plus per ounce of gold yes absolutely and i think the reason they were able to break the relationship was they started another credit cycle and they've been extremely effective it using tools. you know we all know what they are to create paper gold and suppress the gold price which they know is the canary in the coal mine so the system they're running cool now how do people get such of their newsletter lawrence are you giving away copies i hear yet copies of the newsletter are free just because i want more people on the side of the trade if some of my email addresses l r o l l p a r g e m a to edward markel for 2 got some email which on a list every quarter i write something explaining how i'm doing the situation talks about gold stocks. and bet going to because as or not decline as gold thanks for

being on the kaiser report thank you very much max thanks they should check that's going to do it for this edition of the kaiser report let me max kaiser and stacy herbert want to thank our guest lawrence lockhart you can find him on twitter you can find us on twitter the kaiser report the next time. time after time corporations repeat the same mantra sustainability very important to accelerate the transition to sustainable prize board sustainability sustainable manner more equitable and sustainable well. they claim their production is completely hama's. leave. it to

congress member. companies want us to feel good about buying their products while the damage is being done far away this is something else this doesn't want anyone else i know. news knew we didn't dream and i'm stunting them understood it's a good. please . keep you. on.

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