actual giant i guess you could say that era and wrote about death it took a point of view which i guess would some would say would be anti-capitalist in a lot of ways in explored that vigorously i remember a very long walks with him through the city of london and he would reveal his extraordinary sense of humor he's a very very funny guy as most highly intelligent people are they do are capable of it it's not always what david graber would want to show because he's known as a public intellectual so you don't want to show that side of yourself too much but privately and walking in may and we have great fun you know playing around with words and concepts and things like that and just probing these things in a very funny way is the right funny man was well he was boring he was 59 years old born in new york jewish and you know he has a lot of humor he was that was the unique thing about him just how funny he was and

how great a listener and you mentioned that he was anti-capitalist before we move on to some of the content of the show because of course he would want us to talk about the world and the economy and the financial fraud and all that stuff is somebody mentioned that in a tweet this guy name rabaul one of the great things about how led and graber one is stridently pro-capitalism the other anti each recognizes real intellect and communes with that so that's what we're trying to do by going orange rather than going dark is you don't want to you know a new dark age you don't want to shutting down if your mind you don't want increase in censorship especially as we enter into deeper level ization because you're going to see more and more censorship of the financial system the banking system the the monetary rails around the world the unit of accounts you see a lot of censorship there you going to see a lot of censorship as we head into this already like both sides are already screaming that it's rigged and they're at the other side going to steal it and it's a legitimate i mean both. both the leading democrats and the leading republicans

are saying that's right one must be like a chameleon and if we get to go orange to keep the message fresh and alive that's what we'll do we're not ones to roll over and play dead and keep giving you the truth every day every hour every minute every block of big coin you got it and speaking of the passing of david graber that is why and where and why i did promise the audience speaking of truth i did promise that we would not wear white after labor day but here we are and that's for him and actually go watch go to this search function on youtube and look for our interview with david greenberger during labor day for 5 years ago where he explains the history of u.s. labor day which was created in order to basically distract and take power away from a day he was a very much in the tradition i would say of dr michael hudson yet another left wing economist you could say loosely but deeply intellectual who makes very compelling

arguments in really broadens the debate and in the credible richness to the debate as you brought up michael hudson i will say that we are going to speak to my thoughts and and see if he we're going to have a kind of memorial here in kaiser report we're going to talk to both of them so that is going to be coming up in the next few weeks now speaking of his book debt the 1st 5000 years here is one of the results of that that continuously unfolds as you look around us and that is a majority of young adults in the u.s. live with their parents for their 1st time since the great depression so as you see 52 percent of 18 to 29 year olds are now living at home yes it's a remarkable statistic and it's just goes against everything that i remember growing up when the objective was to get out of the house as quickly as you can a city just turned 18 where max was at the lowest point when you went living on

your own in new york city started as a stockbroker as my 1st job out of college in 19828 year career you know and slugging it out as a young you know in my twenty's learning a lot embracing life. and so to be in your parents' home during those key years it's it'll bring the american average up to where around the world you see different countries they have this phenomenon and in italy i believe it's in the country in the world were people stay living with their parents told the oldest it's in the high twenty's early thirty's and so i guess in the us is going to be in that category yes the household formation as we've been following you can see it's been declining over the years in the past decade or 2 as that huge accumulation of debt which you know if you look at david greene was book a 5000 years of debt you know it was always forgiven it was always we always wipe the slate clean and we're not doing that anymore because the world is

becoming so you know basically it's this whole thing for ship this is resistant to any new ideas this resistant to change and the wanting to hold all sort of power and that includes like you won't allow these debts to to die because they're they are being held up and therefore all these generations below them and you know we obviously have a pandemic and a lot of young people do live in cities or apartments and part of this trend of them going to live homeless because their parents might live out in the suburbs or you know the countryside and you get some more fresh air and space and you also save a lot of money because you know unlike the previous generations when you were 181020 there was no such thing as work who has no such thing as work from home you can stay at home and live off mom and dad but you couldn't work from home we had to go where the action was so it's either you know wall street or some other place but

refereeing into this strange space you know i think about in the ninety's in the beginning of perpetual copyright and so are copyright essentially laws become perpetual and intellectual creativity is dead. it and to a large degree now after patch will live at home so the dynamism that would be coming with new household creation is dead and to a large degree we have perpetual all money printing money and money printer gober so we have this deadening economic growth because the the printing of the money keeps the zombie companies in the zombie banks alive so we're we're basically burying ourselves them for in perpetuity you know we have reached that we've crossed over a mile in my belief to a point of collective intellectual all that well speaking of intellectual death one of the things that is the mainstay of why all these young

americans 18 to 29 years old are still living at home with their parents is all of the debt that they have had to incur in order to get a university degree which you need for most jobs in this a condom even though they don't actually have like the technically you wouldn't shouldn't need a degree to do a job like management dominants but nevertheless you need that here because of the whole financialization of the economy so you have that debt but you also have what was set in motion under bill clinton and you know you could be de platforms in this economy for even talking negatively about bill clinton but the fact is like he did . introduce biden by the way and many other you know huge politicians of our day today because of course they still stay in power 20 years later but the fact is that they sent our jobs they allowed for our jobs to be sent over to china and this is the like the intellectual yes it the intellectual yeah idiots as not seem to

have calls it is this weird paradox and conundrum with china in which we're in the middle of a 3 cities trap where there's going to be conflict because that where qui called them economic compare. are the ones at the mall or jobs us trade deficit with china wider than may 2016 when donald trump accused china of the greatest theft in history the u.s. trade deficit with china was 9.15 percent wider in july 2020 than may 2016 when president donald trump accused china of raping the u.s. on trade brighter days policymakers presidents think tanks their idiot savant but mostly it is very little savant yeah so you know here you can bluster all you want but the fact is if we end this trade deficit with china we end the us dollar as world's reserve currency and if we end the us dollar as world's

reserve currency we and the exorbitant privilege that the intellectuals on twitter in the think tanks in washington d.c. the lobbyist they lose their exorbitant privilege the ordinary american does not they don't get to enjoy the exorbitant privilege certainly not at this point for a few decades they did enjoy lower and lower prices at wal-mart but that is at the end as we see because even monetary policy has to go negative they have to give away free cash because because of this situation but here if we close close that trade deficit with china how do we get dollars to the rest of the world is not possible like our part of the reason why. bill clinton forced them into the force congress to put them into the w t o and. as a developing nations so they get to impose huge tariffs was because their euro was being introduced and if the euro was being introduced the dollar was going to have a problem being reserve currency because they needed people to take dollars they

needed overseas you can't have a reserve currency without that so you have to run a trade deficit that's why china doesn't want the un to be the walls reserve currency because they don't want a trade deficit right and people want to assign blame for something that happened in the last 12 or 18 months but you really have to look at the past 3040 years to understand fully how this thing got so messed up we're going to take a break and when we come back much more coming your way go orange. the world is driven by shaped by.

the day or thinks. we dare to ask. is you will be a reflection of reality. in the world transformed. what will make you feel safe. tyson nation will community. you good. right away or are you being. direct. what is true what is faith. in a world corrupted you need to descend. to join us in the depths. in the shallows.

if. you just have to fly between 2 kinds of low and as fast as you can. achieve the producer with the push for the. first from the latest the. stores in 1st no sense of ice water rushes in racing is competition in the extreme to have a follows the specified route between the lines with the fastest time just. freeze normally. would you shoot. your dish 1000000000 plus lou should move did you really try.

welcome back to the kaiser report i'm max keiser time now to return to our conversation with tom because of prescott capital toddy welcome back. rights are going to get into you know how you play it right because you're you're a money manager and you allocate capital and you've got to get exposure and increase folks' wealth and we'll talk about where you're allocating capital but to pick up on some of these themes here so won't both get to the g.o.p. hala ticks of us in china also in a 2nd but let me get your comment on this berkshire hathaway warren buffett they invested $560000000.00 of barack resources the gold company the ohio police and fire pension fund voted to allocate 5 percent of their of $16000000000.00 portfolio

to goal you got rate dahlia he's into gold i believe 20 percent in gold bullion paul tudor jones isn't a gold and bitcoin so. this is what the smart money is doing and i take it this is also why you're doing right absolutely i think those are those news that you refer to are all very symbolic for this area for this industry and what's important to know here is when you look at the mighty space today and you aggregate all the market cap of this entire industry still more than 3 and a half times smaller it and then just more apple's market check out and this is not perhaps. just a punch on apple but by any means it's just it's once seen the company that it's worth 3 and a half times and entire industry that is the only industry the should benefit from all this economic numbers that we're hearing you know i think i think everyone see

that there's no there's not much of a show aside here for only bonce and what sheen. a lot of the environment's one turns of her full of construction when he consumerist varity strategy i think that the another issue that is also going to be probably in the news very soon is what's happening with the government not debt issuance we've had somewhere close to $8.00 trillion dollars worth of treasury so be maturing in the net in bed in a 2021 what does that mean they're going to have to roll those as they roll those someone is going to have to participate in this market if there is not enough funds that want to participate in this you can be sure that the federal reserve's going to have to be forced into buying some of that in which means monetary expansion to suppress long term rates we call this a super charged environment as we're as we get into a very very challenging period of no economic growth at all in the u.s. while we've probably beached some sort of credit exhaustion here locally in terms

of how much debt is in the system already so i mean history question but certainly that is what we're doing refer to focus on my knee to my knee matters in general gold and silver is part of performance today and we have to be called buy gold and sell stocks idea which is if you're looking for growth if you're looking for something that would be probably the next growth stock type of investment that probably will be your tech stocks in the next decade or so i believe strongly that what's going to be in that instead of be the mining space and so i think if i'm right there it doesn't need a lot of the slowest in terms of capital to move the needle it completely change this industry i think we're on the inflection point for that right let's talk about this term credit exhaustion and in the context of what you just said there the federal reserve bank and the u.s.'s all the major central banks in the world have

this problem of maturing debt that they have to either let expire and nick. variance say contraction or they have to print some more money up and by keep buying it for themselves to avoid the contraction but this sense of being a giant ponzi scheme if they've talked about on kaiser report for many years as you've talked about it we've said he can't taper a ponzi scheme so he now that the decision of these bankers will be to print more and keep monetizing their own debt quantitative easing is the wrong term because that suggests that it's a temporary measure but we know now that it's a permanent measure and that it's debt monetization which again is something characteristic of a quote banana republic this is what america used to criticize south american countries for doing oh you're buying back your own debt that's up and our republic and i here's america and all these other central banks doing the exact same thing now the fed owns about

a 3rd of all the bonds backed by home loans and you've tweeted about this what's the problem here that's a big issue especially with regards to inflation expectation in which the federal reserve owns about over 20 percent of them market so the federal reserve almost is capable of manipulating inflation expectations if not i'm not talking about c.p.i. i'm talking about what the market price is in this as expectations of inflation i was joking around you know let's say you're in mars for 5 years and you come back to earth and i ask you look max you know we just printed somewhere close you 3 trillion dollars in the last few months we took rates to 0 and we have deficits now in the year of world war 2 levels. would you ever think that policymakers would be fighting deflation today it's just it's certainly are seen as just this dovish this on top of what we've done already and given the imbalances we have in the system

it's you know it's hard to not home gold in an environment like this or even precious metals all in the ass. that serves us as an alternative for the monetary system so i think to dissolve and he sure in more more the federal reserve would be forced to participate more in this. debt assurance that we're going to see in the government here very soon like i said there's about 5 trillion dollars of bills. treasury bills and today which is a record level it really isn't precedent we've never seen anything close to that in the past and you would think why are they not you know issuing a lot of long term debt given interest rates are so low i don't know that answer either but there is also another thing that is happening because of that that the treasury is also hoarding a lot of cash so if you look at the cash balances almost as large as what it's going to be probably. close to 2 trishul in dollars a fetus or trillion dollars they have for each in cash balance today which you left out if that was also an all nighter or wait which was also

a period of when they issue a lot of treasury bills i think we're in similar place to date i think that's why fearful we're being a lot of cash is to us to e.t.s. they need the money for having issues to issue those those freshens and grow the debt but this is going to become a problem in the next year it doesn't need to be you don't need a few methods ishan to come up with this piece is 8.5 trillion dollar so they would be mature enough less 12 months which going to happen is the federal reserve it's going to have to explode to the upside in order to all those if we do see an environment where large funds and investors in general are starting to run away from treasury markets ringback this is an important point because as you start to sell in treasury any causes you don't surprise we might see an environment where no no you don't ride but gold can actually go up in an environment like this why because that's just people getting our treasuries to buy precious metals there is

a very. that's probably the most probable scenario here that we can see in the following months it's that type of dynamic happening in the markets let's unpack this a little bit because you mentioned that they print and print and print but there are still deflation now let's talk about the. let's talk about interest rates right because interest rates are now negative and you get there by taking the g.d.p. and subtracting the inflation rate that they state let's call it the c.p.i. just for the sake of argument and you end up with a negative number and that negative number is going to as you say put a lot of pressure on holders of bonds 1st i want to dump their bonds and that's the flame i think we can agree that that is definitely deflationary at the bond markets collapsing in a negative rates are present people are not incentivized to own bonds but here's the question this central bank say they want to avoid this deflation they want to

avoid these negative rates but by encouraging the c.p.i. and encouraging inflation numbers to go up. there darron taking the bat fraction will produce a greater negative number right because if it was same place it goes to 5 percent and they're like a battle we want way up to 5 percent subtracting from the g.d.p. number now you've got a mega 4 percent right now they it and i right in saying mass and that they their are basically psychotic in their approach yet it's also the g.d.p. deflator houses it's an issue there but it i think it's again all linked to commodities markets and in terms of that i think it's going to be very difficult high inflationary forces if we get to an environment where commodities certainly the. there are a lot also i mean i think that's that think that's that's a good answer now i mean to skip ahead to that china have for a 2nd because they promise to talk about china and there's a little there's

a lot of geo political tension there and deceit to globalization accelerating over the coming years as the u.s. and china tension increases as both china's tech supremacy grows and is that trade relationship with china unravel going forward so how do you see the china u.s. relationship going forward toddy yeah well i think that the city strap idea is certainly a play in place here and from group grand allison in which 12 rising powers power challenges the established power in 12 to 16 times we've had a war i think that that's probably the case here again probably more of the cold war environment in which if you start seeing especially domestic social unrest it would force a lot of other khana be stupid to bring up this nationalism idea to kind of ease up on the issues domestically i think that's very possible to happen world wife as a new arch friend i think i'll so you know this whole idea of the chinese credit

bubble he might view probably one of the largest bubbles it's seen in history the whole premise of that. it's the amount of debt that they have built up especially in and housing market in china in my view we've seen property developers losing money every quarter while they accumulate over almost an hour it's probably close to a clue to a trillion dollars of net debt and so you know and we're not seen any proof that when you reach that level of credit exhaustion i was referring to it's really hard to translate you know credit growth into economic growth and that's certainly the case in china today which has being responsible for over 60 percent of the economic growth 'd we've had is it will financial crisis so if china can't grow anymore as in the same wow that it was growing before with does that mean for emerging markets emerging markets overall especially places like brazil that actually export a lot of products to china often have issues too so there's going to be

a lot of problems in terms of that might view as as all this issue's with if your currency destruction also unfolding and so i think that's kind of the environment it actually looks a lot like the 77 and if you remember you're talking about commodity markets you know have having a link with inflation let's think about this if you have any situations where geopolitical issues you start heat up that certainly can create a dysfunctional. a supply environment for commodities too we've had many wars actually cause commodities like oil to search in the past the could be certainly the case here again so i think commodities are poised to move to la i are in i think precious mouse they're probably going to be the leader of. this market reaction right tabi koster from crest cat capital thanks for being on the kaiser report thanks max really appreciate the invitation and look for talking to you again absolutely i'll be following you on twitter my friend all right and that's

going to do it for this edition of the kaiser a par with me max keiser and stacy arutt like to thank our guests abby. crest cat capital if you like to get in touch tweet us at kaiser report until next time by ya . was a pandemic no certainly no blood is just blood into nationalities. has emerged little to with the we don't look like seem. to be. judging. commentary crisis like this sometimes. we can do better we should. everyone is contributing each of their own way but we also

know that this crisis will not go on forever the challenges created the response has been masked so many good people are helping us. it makes us feel very proud that we are in it together. is your media a reflection of reality. in a world transformed. what will make you feel safe from. isolation or community. are you going the right way or are you being led so. direct. what is true what is faith. in the world corrupted you need to descend. to join us

in the depths. or remain in the shallows. trade and investment to become magic spells to conjure economic development. most people think about trade they think about goods and services being exchanged between countries and the investment chopped or a trade agreement is about something very different but won't when investment leads to toxic manufacturing that destroys sacred sites all ruins the environment. that means if local communities that are being poisoned if they object if they do anything that the company feels is interrupting their profits they can be sued now the nationals are taking on the whole nation philip morris is trying to use i.s.t.'s to stop oregon from implementing new tobacco regulations aimed

at cutting domestic smoking rates a french company sued egypt because egypt raise its minimum wage democratic choice of a trunk call for. joining us as we try to find don't want to. there's a wonderful public but we're freezing of the whole you. should hear the. sound of them going. along isn't there a need for a list. of appeals so let's meet both of you so. the point was to use the book with the discovering that those that would use of

these visibly you see with me you know of course the. headlines this late tuesday morning the diplomatic route was surrounding the sudden illness of russian opposition activist elected novelli sees the prevalent thing up a terribly accused and despite a lack of definitive proof pressure now mounting today to punish moscow a ditching a major gas pipeline project. saudi arabia commutes the death sentences of those convicted in the 2080 murder of journalist jamal khashoggi rights groups outraged over it noting those who ordered the killing on being punished at all and. so the court think you know yeah. sure the number of disgusting assaults no.