one side of the business and the other side is ideology. how would i define hollywood if they call it a tree manufacturer which i think's true but i think equally it's a propaganda factory. i'm max kaiser this is the kaiser report you know times are weird all over the world particularly in the sphere of economics that's why as i was when things get really difficult to understand we bring in plotting the world's greatest economist. status here looking. beautiful today well i have my spring like shirt on because i think it's the paper spring we saw

the arab spring and the last financial crisis back after 20082009 all the money printing and all the chaos and that caused the food price inflation and other sort of inflation that led to the arab spring today we're seeing a continuation of that we're seeing a paper spring as people reject even if they know it or not what they're rejecting is this massive money printing we're going to look at some of the headlines talking about what they're rejecting what they are instinctively rejecting in this global insurrection against banks their occupation in this insurrection against paper printing and i have some of my paper here of course here there's 100 euros here is 100 euros who hey pocky have another hungry audience have sometimes you may be. right. so why are card prevailing likelihood that the 1950000000 euros does not exist that's a headline from bloomberg they think perhaps well we looked at our balance sheet perhaps there might not be any money there. that's yes what's up lucky.

crap to very mean to close up my perch where through one find a stripe lucky bankruptcy is the new initial public offering you can't get any better for a stock than to go bankrupt one of whom i rather put up right now. the point i want to make is that if you look at this company wire card is a german company they apparently they can't find a missing young they're auditors can't find 1900000000 euros worth they don't know where it is that might not be there my net not have ever been there might have been stolen who knows right so this is the case if you look at the fed's balance sheet if you look at your government's balance sheet if you look at any of the corporate balance sheets of any company listed on any stock exchange you're going to find the same thing and we're going to look at a staggering number of side hustles everything is a hostile everything is a shake down everything is like times square in 1970 sort of scam. because we have

all this paper printing that has. basically created the moral hazard and the incompetency and the inefficiency in our global system here is masto are looking at a chart that we covered last week from deutsche bank u.s. rising share of companies with debt service and costs that are higher than profits such a fundamentally important char american corporations are increasingly doing business only as a side hostile to their real purpose which is transferring cast from lenders to looters member of the lenders are you know that all of those bonds that are being put on to the federal reserve balance sheets this is what is happening it's being transferred to the zombie companies and they're looting well you know this goes back to something we've been saying for a number of years now that corporations only really have a profits in terms of what they can engineer on their cash desks as they're called

right so you have like a car. companies in america they stopped making money making cars they made money leasing cars and then taking the income from those leases and building derivative portfolios and ponzi schemes and then the executives of buy back their own stock and then the options would go up in value and they'd all become billionaires somehow magically not knowing why even though their car companies were losing money and losing market share same thing with the banks obviously now every single corporation in america pretty much just doesn't do what it says it does a food companies don't make food the car companies don't make cars the computers don't make computers they don't do what they say they're doing all they're doing is they're gaming the system by getting the free cash from the fed if you're part of the privileged class and then rule you know whipping that up to these huge paydays for the executives using as was described here that's just the latest chapter in the latest kind of revelation that you've got a transfer mechanism where the s. and p. $500.00 is just a front for like the money laundering right we've talked about money laundering the

past like a restaurant that's. simply a restaurant but it's actually money laundering hub or a face right so the entire american economy is just a facade for money laundering at this point well it's a facade for money printing so the fact is since 1071 nobody in america not a single person nobody has had to actually genuinely work we just print money the chinese asians europeans send us their goods for our printed money there has been a facade of of having to work well that the pandemic has put a life of that so we're all at home nobody's having to do anything and they're starting to realize their uselessness their lack of value in anything in the economy and that is the paper uprising that is the paper spring well i guess we're in summer now and we know we're in summer because we're almost as hot as the sahara desert not quite as hot as the siberia course because that's the arctic and that's hotter right you know david graber wrote

a book about. all the nonsense jobs in the economy and that none of are really necessary and if people said i'm kind of interests are you know they didn't really take it on too seriously but here the covert 1000 virus has proven that most jobs are completely suppressed for us and unnecessary to the economy and they're just there to keep people kind of sedated there's nothing functionally or kind of constructively that they add to the economy and anyway yes we're transferring from lenders to looters ultimately all that the debt from the lenders goes on to the fed's balance sheet so goes on to the population's balance sheet thus. removing any sort of potential for the future that i think a lot of the stuff is instinctively understand because we are still you know animals primordial goop that we came out of and we understand we have an survival instinct and we understand this and i think this is what this paper uprising is

about and another headline a staggering number over 18 trillion dollars in global stimulus and 202021 percent of world g.d.p. so bank of america chief investment officer michael hartnett concluded that there's just there's just one bull market to short and that is mainly credit i.e. the debt markets he says they are a 500 year bubble and it's a perfect one to short however the fed will not allow you to do that so don't fight the fed and therefore we have this absence of truth so this notion of people like fake news and this this this battle with the truth like our history is the truth is some of it is interpretation what is that real what is not real what is truth what is not truth why we're knocking down all these monuments i think it's part of this paper uprising is that we have all this fluff and people still have genuine needs for food shelter you know. love community and all of that is coming

together because of this the absence of price discovery over the since $1071.00 the absence of any real value says scientists everyone i think this is the culmination of all of these this is my interpretation this is our conversation our philosophical conversation about this that alright so this is the culmination you think this is really 20 twentieth's when all this stuff comes together you know you mention the fact that interest rates are very very low in that the bond market in america is at a 240 year high innocent and over 300 year high in great britain the bonds have never been this high in america or great britain in the hundreds of years and actual interest rates have not been this low going back to base actually more than 3000 years so this is truly an epic moment you know inflection point if if if since fact is the moment of come up and and it is the time it which this paper spring comes crumbling down and then the other side of this would be probably would have

to compare to mount vesuvius exploding or the tsunami disaster in indonesia or other such great natural disasters that it could potentially be a whirlwind of paper that would have such magnitude in force and create such chaos throughout the global economy as to possibly eviscerate half the world's population well it is a staggering number 20.8 percent of global g.d.p. has been injected in stimulus in just the past 3 months so you know how we can get past that i don't know but it's i think that the paper uprising that we're seeing is a rejection of it and i think whatever happens next and it might take 2 years it might take 5 years it might take 10 years for this them on routing numbers are huge right so the global g.d.p. is almost i $100.00 trillion dollars and the amount of money that they printed recently was $20.00 trillion right to 20 percent of global g.d.p. they they just blew into the economy with this fake money right and that numb. as

expanding almost exponentially so we as we've been saying on this show going back to dabis a few years ago they were preparing a credit facility with the i.m.f. the in a national monetary fund of 100 trillion dollars right so that sounds like we're about to enter in arrow when the $100.00 chilean dollars debt loads are the new norm we already have a global debt which is almost 300 percent debt to g.d.p. of the globe that structured debt just dumb money printing so then you put the money printing on a similar track and now it's 102200 trillion in money printing even with interest rates at 0.0001 percent the interest on all this money would be greater than the g.d.p. of the united states or greater than the g.d.p. of china right so that's this is a cataclysmic event where we go through kind of the event horizon and everything becomes completely as we've mentioned before we call this bespeak speak

edification of the global economy through the event horizon of quantum money printing and the quantum money printing has led to this paper uprising in my opinion and part of it is because we've realized that we've all stayed home nothing is happening nothing is being produced and yet everything is finite the stock markets are all time highs everybody is eating they're getting the food stamps are getting their paychecks and this also exposes the paper ponzi the paper that the illusion under which we have all been living since 1971 just an incredible story in the times poverty fell in april and may per one study because of the massive federal welfare expansion including expanded unemployment which was the extra $600.00 a week and $1200.00 checks even as the economy fell into a black hole so as we see everything around us has been closed down shut down no traffic no air traffic no nothing nothing's happening for 3 months and yet poverty

has declined because. this free money all of this paper being sent to people like rates i guess i should he has the money they these all kind of stick together so get out they've spent all this free money and people realize hey wait not only do i have that leisure time that's been promised by all these efficiency gains and advancements in ai and robots and technology i'm sitting home i got all this money let's shop right it's amazing people would say you know america has got 100120 1000000 people at or below the poverty line and other countries would say that's impossible wall a 3rd of the country or 40 percent of the country is poverty stricken. and yet this is the proof that that data point is correct that's just a few 100 extra dollars a month suddenly average wage skyrocket you know it shows you that people living in their car working 2 jobs and a mouth and the high fructose corn syrup it's not a healthy situation and i want to say in the last few seconds here that you know

just like the french revolution was sparked after the people the peasants realize they got to see that the king's books right that was. an attempt to quell the population and they saw how the king lived this by sending them $600.00 a week extra plus a $1200.00 stimulus check people are starting to say wow these are this is why jamie diamond's a billionaire this is why the way blank finds a billionaire i could be a billionaire to the fed clucky could make me a billionaire and he's chosen all this time not to make me a billionaire when all he has to do is throw me some money and i'm a billionaire why is that it was so easy this whole time bookies never been so excited well we're going to take a break and when we come back much more coming your way. to. join me everything on the alex simon short and obviously. in dick yes of the world of

politics small business i'm show business i'll see that. for a good. one. but on the but i'm going to the book on useless all that business i'm just. learning t.m. to do i feel still really stuck or your muscles in the course of your knee. chill the. compassion that. we think he minds be soldier dicky's off the boot she's wearing. to church so the soul looks like to move the opposable opinion

more than like it on the shore stuck in the summer watching the police force. welcome back to the kaiser report imax keyser time now to go to conor brown he has recently written a fantastic blog post at bitcoin reserve dot com titled bitcoin a bold american future we're going to get into it but 1st connor thanks for coming on thank you so much for having an accessory to be here so you've read some interesting things here so how is big coin and matter of national security let's get into that a little bit connor plays certainly so national security from a broken down to a couple different elements but the ones i focus on here is energy independence and the ability or

a nation to have its you know control of its own money supply and i think that 1st energy independence decline is is very important because it can sort of reignite our energy sector are seeing a lot of issues in the energy sector reese you know bunch of malinvestment you know a bunch of. energy companies that aren't necessarily as profitable as certain you know prices of oil and so that coined by my own accord instead with that natural gas and this sort of digital i ply you can actually get much more money out of your oil and natural gas and you can also take things such as nothing and the sorts of excess parts of the production process and you can you can vent that off and sort of you know using it and just going into the atmosphere you can actually capture it and mind to clean with it so this is this is really important because you know you want to be a part of this sort of new monetary system but at the same time you also want to give life to this interview and sector and you know therefore you know sort of create a whole new robust economy around stronger energy grids and more advanced energy

production and more profitable to do all right this question of energy and bitcoin is an interesting line i think widely misunderstood last i saw the figures something like 70 percent of energy going into mining is renewable and yet you bring up. point stary now so many times you see photos of gas wells being burned off right there and that energy is just wasted energy that could be captured also because mining is portable you can go where the cheap energy is whether it's let's say hydro electric or solar so it's a lot more mobile a lot more agile so you end up with you know true energy independence at a much more efficient cost and that's a huge good you know a huge get for for a bit coin you also write about the dangers game of debt a company called in a wire cart has collapsed into a whole heap of nothing $2000000000.00 went missing or it was never there to begin

with. you know could something like this happen to our entire fiat's system because the same type of wire cart is just symptomatic of a much bigger problem conor yeah i mean i think this is something we need to really have an honest conversation about the united states has been increasing its debt burden for a very long time and debt is growing much faster than g.d.p. and the amount of additional productivity we get from each dollar is decreasing it has diminishing returns and so we're kind of seeing this in game begin to play out where more debt you pile on the less you get out of it and eventually you know we all know that it's unsustainable model you can't have a level of debt rising beyond economic growth for any same period we've seen it happen now for about 50 years which you know coincidentally happens to be about the length of time going to last so i think that we're seeing sort of the in stages here and you know the coronavirus just popped in to be. an incredible chastity

economically speaking right when we didn't need it and so i think this is really accelerated this in game bush afford a few years old now it is going to be completely 'd and. right said the problem or the big problems of say out money and having a central bank that prints trillions and trillions of money is that you take away all the incentives in an economy in a capitalist economy you would hope that the incentives or the competition. breeds excellence but here it seems to be the opposite now in the u.s. because the things that are let's say the zombie companies companies where the interest cost on their debt is exceeds the profit of the company that we now have 20 percent of the s. and p. 500 classify as zombie companies that number is growing growing a lot and so it's up you know i'm a private simply isn't that part of the problem you've removed the incentive to be a profitable all with a central bank that will write trillion dollars checks at the drop of

a hat right yeah i mean anything it's not just removing incentives it's completely reverse the units and when you have money printing and you have this fresh money hitting the economy there's going to be the most profit to be gained it right there where it hits the economy. we all know that but think about the 2nd order effects of that that means that the best profits are going to be right there at the beginning of the month so people that in a capitalist economy are in a sound money economy we should be taking you know and going to school going to you know a big school getting a good education and then saying you know the best way i could profit off of the skills i produce is to go and build a proper business and create a product that consumers like a good cost and with at you know sort of new insight and new market action i can really make some money for myself but it can't be honest i pour money into a very specific point in the finance sector means all those great minds as talented people that wouldn't want to make great companies they're deciding actually to us when i can profit is going to sign it and so we're seeing this financial industry

that is outstripping the growth of any other sector of the economy just because it's most profitable there and you know it's not to hate on the people in the finance industry they're simply acting based on the set of incentives and given which is you can make the most profit if you go into the money business they can tailor a factor the cantillon a fact as i call it here on the show it is the result of the money not being distributed evenly when a rolls off the printing press as a tends to go to the people who are closest to the fair. and those tend to be bankers who buy back their own stock and watch their executive stock options go for years or so this whole money printing and it really goes back to alan greenspan and they bail out of the stock market in 1987 it hasn't caused really social unrest but now it has you can even look at these black lives matter of protest or occupy wall street or the arab spring over there in the middle east you know all around the world wherever there's money printing there's now social unrest and bitch

a powell says emphatically no there's no connection d.-o. great no i mean of course we're seeing these flashpoints and each one are going to have a specific social cause and a specific social occasion but the fact of the matter is that these tensions have been building for years and years for a certain reason and that's because people know there's something wrong in the feels like they're being ripped off it was like something's not unfair if you can't get ahead in life and you know it's easy to blame it on a specific corporation or a specific you know social problem in a specific location but the reality is these are happening worldwide as money printing is happening worldwide and because that dislocation of capital is happening and those incentives are being formed around it means that you know what would normally happen in an economy where people gradually over time as humans become more productive and we say did we invest we make better products we've still our lives improving over time but the reality is because money printing has sort of take him these these games and going to them all it's a very specific class of people it's made so people feel like they're actually

going backwards in life that they're not living the same already of life of their ancestors and that's deeply troubling and that was a bunch of on russell you know horrors over in a specific happening certainly generational a they millennialism agendas a way less wealth at this point of their lives than the boomers to it that's for sure and those of society that about marginalized for 100 years or 200 years or longer have been increasingly even more marginalized and so those trends are. are increasing you know you've written something recently which is fascinating and you talk about the gold rush now what i know about the gold rush i believe is 1849 you have the 49 er's and they went up to the west coast and we have the gold rush now you put this into context of how this impacted the economy as a whole how this relates to bitcoin can you speak on this conor yes certainly so the gold rush happened in the late 18th forty's and was very important point for the american economy because right before that we had really the 1st great russian

and because we had just been piling more and more debt and more state investment projects. many states on bankrupt you know 830 s. and it causes really serious malays though going came in and people like oh my gosh there's this thing that separates i'm just going deeper into debt we can actually make something productive something external yourselves and we can become rich off of this and that was a really great thing for the economy it created about 15 years of just really unprecedented and i think we're looking at an extremely similar situation today represents a sort of extreme no way that we can profit we can revamp our energy sector like i was talking about before and this weekend you know sort of general selves out as debt trap that we've been forcing ourselves into this sort of external stimulus you can have an actual you know great economic moderation where we can have sustained growth we can have true rise it will be living standards and we have an actual true incentive to revamp our energy production and energy production is really the life

force to the rest of the productive economy so there's really all these great benefits you can have a sort of 2nd gold rush if we really recognize a coin for the amazing technology is and go all source 'd right let me expand on that a lot of bad in china back here reginald point you're making about national security and energy independence and let me posit a theory here and get your reaction to it this is a bit of out of the box thinking. but in my view it seems to me a that similar to what happened in the 1960 s. and the sputnik moment when suddenly russia had put a satellite up into space and america said oh my god we're losing the space race so we got to enter the space race and you know this launched of carson decade of technological innovation and in a way americans landing on the moon and we don't we all know the story but is it possible that instead of this fear that governments are going to outlaw because i

isn't of the path of least resistance for actually we could get into a global what i call the hash war where countries are racing to get as much mining as possible and get as much of this big going on their national reserves as possible what do you think of this you know i thought about this a lot and it's really the ultimate prisoner so you know in the cold war we had the choice for destruction or mad where you know anyone moves and everyone's not only in decline it's a complete opposite singularly assured destruction is you don't print money to buy the corn and you are rich sure you yourself are destroyed and i call it a sad theory and i think this is really important because it completely changes the way we think about monetary workfare you know the 1st country that realizes there is a huge asymmetric advantage adopt a standard it went and simultaneously defeat oh others you know currencies so it's the open office of indecency so really the only logical outcome is the 1st one did adopt it when it's going to be the winner and i noticed you know that iran i

believe has something like 3 percent of the hash trade and they somebody over that because they've been victimized by all of the censoring. money in the dollar in this system was censored because the dollar's been politicized so they said wait a minute you know how about a non sensible money like bitcoin maybe we should get into that of course they have a lot of cheap energy should that ruby ring you know alarm bells be ringing in the state department yes i think he just should see the opportunity for what it is this is a chance to get back in you know change our finances for the better. or and really the american economy brown thanks for being on the kaiser report thank you so much max all right well that's going to do it for this edition of the kaiser report with me max kaiser and stays there but like to thank our guest conor brown if you want to reach us on twitter it's kaiser report next time by all. i know no crowd. no

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