in the world corrupted you need to descend. to join us and the devil. or i'm a going to the shallows. welcome to the kaiser for a dime a minute max kaiser yeah that's right i got strong after last episode stacey throw me in the laundry and shrunk me now i'm only about 8 inches tall station next hand me the little mini racks here because you know if max this max were introducing the show you upright find it pretty creepy probably as creepy as these blow up dolls now filling the empty tables at restaurants here is

a headline that i found actually was geek boy from ireland and he tweeted at us and he said christ report fake customers in the restaurant an illusion of demand there's a kaiser report analogy in there somewhere and he was referring to an arty headline that one german restaurant has found a solution to maintaining social distancing on his reopening manic and a family run businesses fail tables with plastic people in order to keep customers apart and create a vibrant dining atmosphere that is not creepy at all no not creepy. now it's like that film airplane remember they had the blow up pilot who yes. then all kinds of mr fall out catch that film very missing well yes the potemkin villages in northern ireland during the crisis make it look like stuff was going on that there was business activity where there were no business activity so this illusion of demand is key to our modern economy because it's demand 1st then supply

is lay people think about supply 1st the demand like are going to make a really nice corkscrew and if i do a great job there's going to be huge demand for my corkscrew but here in a modern society with the financialization that we're living under the man is created 1st in the form of massive oceans a fee out money that flood the globe and then all that fear money is looking for a home so it ends up supporting supply but because the supply is not genuinely the result of demand you end up with malinvestment you end up with. really kind of dysfunctional economy and the solution of course would be to stop flooding the money with the globe with money but what we hear from the subtle. to keep doubling berowne now let's compare the economy in the economic monetary and

financial system to the situation in germany they are potentially evidence that even lifeless gas can ruin your meal so the same thing with these you know these blow up dolls these manikins of course they can't eat so they can't consume so they can't give you business so the money doesn't circulate however every normal person the world is now getting to see how creepy the world is to the kaiser report for the past 10 years we see the economic metrics and it is as creepy to us as it is creepy to you to sit in a weird restaurant filled with half the customers are mannequins right so half the money supply is the equivalent of a manic and half of well even more than half of the economic activity is just the equivalent of a blow up mannequin sitting there disturbing your meal right because it's disturbing to sit there and look at that's what we see when we look at fracking what we see when we look at negative interest rates what we see when we look at the

fed buying e.t.f. it's the same sort of disturbing feat economy look when you get it negative interest rates and you get negative oil prices here essentially saying the time a stop and space the longer exists so why not in in a restaurant full of lifeless without any animation blow off consumers that are mere representations of life right so we're this is essentially a mark of the plastic army that is descending. now into our lives in all 3 manifestations driven i would imagine by some kernel of ai right so there are conditioning us to accept a blow up doll future it started in the 1970 s. and now it's god's call nation here in the 21st century the plastic army is upon us so here are the blow up dolls masquerading as economic activity in the m 2 money

supply data here's 2 different ways of looking at it is from the st louis fed here you see the money supply boom during the dot com bubble burst and then the 2008 crash but here you can see it in this current situation q jay vast quantities of money so if i remember it supposed to create the illusion of customers in your shop customers eating dinner with all you people it's a festive atmosphere go out and shop great but here's the velocity it's lifeless it's mute it doesn't actually circulate since 1999 as you notice in your restaurant that they blow up patrons aren't consuming anything the solution according to the policy makers would be to make the blow up consumers bigger like to inject more up you know helium or oxygen into the blow up and that'll somehow improve the situation they're not taking into consideration they're dead that they're lifeless that they thought they can't consume just like

the money's velocity number shows us that for now a couple of decades dying and recently the money blossom is now pretty much at 0 it's like the terra cotta warriors in china right there just they on earth this tara conner army. you know lifeless clay soldiers the knowing is really threatened by them but they're kind of spooky if you have a restaurant full of blow up dolls you're not going to book any sales but the government will keep injecting more air into those blow up consumers and telling you that the economy is growing right so that kind of just not beyond stupid right it's it's an attempt to rewrite the laws of physics and. i'll tell you what it is it's creepy a f. you're talking about ai this is creepy a.f. and ordinary people are starting to notice that when i say unemployment numbers come in in the united states and the g.d.p. forecasts come in at like g.d.p.

now it's now at negative 48 percent your economy's cut in half is half dead your unemployment numbers are like 20 percent they say officially like 15 percent but everybody knows it's above 20 percent and what are the markets do soare well that's the blowup doll of the markets right this is a depiction of the economy and natural terms this is if max kaiser were depicted in the true size of the actual economy it would look at this this this dimension right everything else beside this. was plucked is on the shelf behind me taking a nap quiet down. well you know that fake macs i like him kind of like getting a better view so he's in the show and it isn't and people could be creeped out you know i noticed that fake max has a barefoot just like me saying that it's verisimilitude life imitating art

imitating life imitating art so of course all of this fakery is based on a u.s. dollar backed by oil and you know that the oil price is gone negative because of the financialization and the fraud rampant in our economy front. running ichi austan and you know destroying an ordinary investor well here is a part of this story of the global collapse of the economy despite all the blow up dolls in the monetary system the u.s. dollar short is nigeria running out of foreign exchange amid oil price collapse even with the recovery the nigerian government's revenue and its access to u.s. dollars through oil exports is less than half of what it was at the start of the year so the oil export nations especially places like my only because of the oil collapse they're suffering a shortage of dollars and somebody's response to this commodities trader woman an analyst and with some of the math now it's his estimate so it's not totally accurate and maybe not perfect but i did rough math

a while ago and estimated that u.s. dollar oil transactions will be down $1.00 trillion dollars in 2020 versus $21000.00 from approximately $1.00 trillion down to $800000000000.00 demand collapse plus price decline that's a lot of lost us dollars so part of the deal that was struck the 1971 all oil transactions are priced in dollars right so if you're nigeria or you're japan if you want to buy oil have to buy dollars 1st right that's american style global colonization right so merica has an empire our colonies are places like japan or nigeria and we colonized these countries using the dollar in terms of it's connected to the oil market the energy markets for the petro dollar system so nigeria at one of america's colonies because of the collapse in oil price finds itself on able to buy enough dollars out there to keep itself from going into

utter collapse and that's not going to change all these oil exporters that are american colonies venezuela is a colony let's face it of america. are going to go the way of the dodo right they're going to come become extinct unless they very very very quickly introduce hard money into their economy either gold but. you know more easily and more up to the minute would be bitcoin so nigeria if you want to stay a country with bitcoin or you're dong well in the meantime we have this will feed system and the operator of the system the wizard of oz of this system is the united states federal reserve bank and the federal reserve bank because this decline in the dollars available overseas through real prices and real you know economic activity they're going to have to create a mammoth huge blow up doll of

a monetary system to pretend that this thing can stick together and you see that you know max and i have looked at. the fracking system which you know if you just look at it if you look beyond the big blowup doll of the headlines of like we're number one where the number one oil producer and if you look just at their own returns their own financial filings on the stock market you see that they don't actually make any money and they call it takes more energy to extract a fast barrel of oil than it is to produce but nevertheless here we have stealth bail out shovels millions of dollars to oil companies sell bail out so we can all see a freaky creepy blowup doll it doesn't really exist we are not a number one producer of oil this is its fake and we see it's creepy plus it's a poor use of the word stealth i think the word they're searching for is obvious this is an obvious bailout it's not there's nothing stealthy about it it's another

obvious bailout look i mean you know in the middle ages as people began to question catholicism or i noticed the cathedrals got bigger right so it has same thing with the dollar as people question the u.s. dollars ferocity as a unit of exchange in the unit of account the money printing is blowing up you know it's a huge jupiter like saturn like proportions to try to block out the anyone's doubts that maybe this is a joke being played on the world and that some point. that it's not going to be good is not going to be good and that that point is arriving very very quickly a look at the open interest on futures trading a bit quine that's paul tudor jones you know a year from now the biggest guy in bitcoin or a gal will be paul tudor jones so have many much much more than the winklevoss much more than anybody and you can see that in the open interest and to quote features right now this is what's happening right now this is the this is what's happening right now this is what we've been saying for 10 years but finally you know i want

to point out that again this blowup doll the creepy blowup doll economy. and monetary system in terms of oil what you're seeing here is they're turning why they're why it's a stealth bailout isn't that the bailout package the so-called stimulus again you know stimulus that word is just a blow up doll it's not real it wasn't stimulating anything but nevertheless they've companies are able to turn all those losses that they've had for the past few years and turn them into tax returns so they get tax credits from the taxpayer for all those losses right very own remote create sin upon people. this is not a pipe. anyway we're going to take a break when we come back. looks rude. don't go away.

we go to work. straight home. you are no offense but you no longer a young woman in fact you are one of the last living survivors of the nazi yellow asked i'm aware of it. leverage all you like. and you can never forget they are going now auschwitz was a day in the life to be inhaled goes you would never believe that one. can do to as

a cop did it cost for 2 years of both and be a good purpose it all seems a lot over time you decide to make it to work when i get out on the farm saw you know what it's like ma song to her next to you so he can listen and hopefully bless my heart hurts me. you know you just like to make your children you know when that should grow. wrenching you say study is a corner in the way it's an experience we have no stations a corner and sing about what you have to. welcome back to the kaiser report mike kaiser time out of turn to tyson slocum of public citizen tyson welcome back always great to be here let's talk about this

this price war that saudi arabia has started or tried to get involved with in the oil the oil patch and it looks like they started the war and they're getting crushed by it because it appears as though even though their cost of production is roughly $85.00 barrel dollars a barrel which you would think would give them a strategic edge it appears as though those on the other side of the trade were able to engineer negative $38.00 a barrel in the futures market. and this kind of changed the whole dimension of price wars and geopolitics and in a matter of a couple of hours on the futures market here in the united states tyson what do you think absolutely you know national oil companies always appear to lose when they

try to take on oil traders and this is just another example and nobody surprisingly enough seem prepared for negative pricing t.i.i. west texas intermediate and smart price and the problems continue to persist in fact there was a stirring letter written by the republican chairman of the independent u.s. agency that regulates this market o.b. commodity futures trading commission basically reminding exchanges and other key marker to suspend it's that they need to be vigilant about their duties and responsibilities to keep these important benchmark products oldman so what we really have here is a lot of market disciplines are saying away from.

some of these other key. benchmark products because they continue to be concerned about prospects of negative pricing which is obviously not a good thing if you're an investor but i think as part of a transformation of a united states economy in the global economy away from stuff that has a say away from the tangible wealth and the transition to the financial ised world in the supposed going on since alan greenspan was running the federal reserve bank in washington c d c when he commented that the world trade is getting lighter you know he is referencing the fact that more and more of world trade depends on trading paper or . around the world are not actual goods and commodities so you have what you're describing there is market failure and that the actual producers of this energy that is used to fire up the world economy is in jeopardy because markets have the price discovery of these commodities has now fallen into

the hands of. pirates basically tyson you know you're absolutely right and what happened was those pirates didn't anticipate the fact that they would actually have to be liable for physical receipt or delivery of crude oil because embedded into the contracts is an option to sell the contracts with physical delivery and as the contract neared expiration 24 hours for contract expiration it was panic time with all the speculators because all of a sudden they were like we might actually have to physically tape vs tens of thousands of barrels of oil but we're trading on a per and right now all the storage is full so they panicked getting out of the contract and they cause the prices to go negative so this had nothing to do with.

you know actual supply demand pricing by energy producers in energy consumer this had everything to do with speculators and retail investors like. exchange traded funds that were dominating most of the trading volume and then got spooked when. the prospect of settling those contracts with physical delivery could have been one of those e.t.f. for a moment the ticker symbol as you ask as a new asshole oil and that one points take a. control of something like 25 percent of the oil market and this brings up a number of questions 1st of all as you point out there's a lot of retail participation in this product so if oil trading has become weaponized and saudi arabia is perceived as the bad guy

then retail investors on robin hood by buying us though are in open conflict with saudi arabia by trying to put them out of business so there's that side to it the other side of this is that they e.t.f. which is regulated of course they blew past any position limits that they're supposed to abide by. and flagrant lawbreaking there but nothing new so is this e.t.f. this us e.t.f. is it the poor man's way to launch an attack on saudi arabia tyson i don't know if the the retail investors view it that way but functionally that's how it's working and i just think that we've got serious problems with these e.t.f. semi's other retail products and futures markets that

are 1 driving a lot of the volume as you say low in through the position let's remember position limits reform was one of the cornerstones of. the american federal government's response the last financial crisis of 2008 when congress passed in 2000. what's known as the don franc acts and one of the cornerstones of dodd frank was mandating strong new position limits in commodity futures products like crude oil and you know it's a decade later and we still don't have through position limits it's been one of the most absurd carnivals. lack of adequate federal. remake where we still do not have in the fact. is issue limits rules and so as

a result these retail investors continue to go wild. right well american culture is based on lawlessness right it's the frontier was. was opened up through the wild west and the outlaws of that era the hollywood is based on celebrating the crime crime syndicates of the mafia no banker or broker on wall street has ever followed a law jamie die. means considered an antihero because he breaks he's a serial lawbreaker i mean it's so baked into the american psyche is even the american pastime of baseball can be won by somebody hitting a ball out of the park wright said you know european game has features a game a sport features a game where you can win by hitting the ball out of the park right that's thankfully american trait is let's break the law because at 19 those who are breaking the law are considered heroes. so how do we ever anticipate

that any law will ever be followed in the financial markets particularly when the end result seems to be a slap in the face of america's mortal enemy saudi arabia tyson these are all excellent points you know we do think that even with poor track record of regulatory oversight we do say that there are elements of dogs if they're implemented. particularly around position limits. weekend start to ration in some of the excessive levels of speculation of course speculation plays a healthy necessary role in all markets the question is whether or not speculators are dominating. the fall human trading in a market that's designed to be a. hedge against price risk for busy actual physical producers and

users of that commodity product so why oil prices traded natively for the 1st time in a 100 years the price of money that if they say interest rates went negative for the 1st time in 5000 heirs and you know you've got this fracking industry now that relies on negative interest rates to convince investors that they will lose money from slower then just holding cash so that's the value proposition of fracking you will lose money flow are then holding negative interest rate paper but has the negative price impacted the industry as a whole or is it entered into a post mark to market economy where only the goal of not losing money for quickly is the objective will be the fracking industry 2 which is. structural fighting in szell problems for a very long time was left. clearly exposed here by. the

chain of events around covert night where their entire business model has been exposed to be a complete sham they are not going to make any money and in fact one leading c.e.o. of a big frack or that has a big presence in ermey and basin in texas and new mexico. testimony before texas regulators when texas regulators very briefly flirted with the idea of imposing production limits on texas producers as a way to go after the russians and the saudis this c.e.o. this fracking company came out and said listen the problem isn't russia or saudi arabia it's not. we have done a coup or job with investors capital we've wasted it and. until

we start to fix our problems nothing's going to save us the problem is is that i don't see anything fixing fracking structural financial problems at any time it's a losing proposition and hopefully we've got a growing number of policy makers that now finally recognize that fracking is not going to be the engine that is going to be able to drive the u.s. economy in fact it's one of the big shams that's actually holding parts of the united states that won't stop the money printing and that is the basis of the u.s. economy tyson slocum thanks for being on the kaiser report that's going to do it for this edition of the kaiser apart with me max catherine stays here ever again thanks for i guess tyson slocum of public citizen if you want to catch our sunday live periscope go to twitter check out kaiser report on twitter yeah it's on. there

the next time. join me every thursday on the alex salmond show and i'll be speaking to guest of the world of politics sports business i'm showbusiness i'll see you then. 'd come. ringback to live from sharon says lou said you could.

just look up one. piece in all these shows all the stuff the phone. was faked fixing to force you to put stinky in the body we know it's. a very mall. we. used to think the police in the. bronx is likely to shoot his interest but not. just for. years a new cold war isn't played this time which again chimed one of the terms of engagement what does it mean to win this conflict an all out war possible how did the us and

its alliance find themselves in this situation. the u.k. government made a choice to leave current holdings although tested for corona virus so it could focus solely on the n.h.s. but the admission sparks outrage among relatives who lost 'd loved ones. on mt sinai she wasn't worthy of having to tax. residents in. the past why we need some answers as to why this is going out and while in france prosecutors open probes into the deaths of some care of home residents or relatives lay the blame squarely at the door of those running the facility.