dot com forward slash max keiser it's more resistant to censorship so you should check us out there oh yeah definitely we know you've got to stay agile and in the words of the of nasima or not seem to love depending on whether you want to count as they incorrectly answer for jodi would include a certain amount of agility and so we want to get off platforms that are prone to censorship and move toward the world of being on censored also of course this is 2020 and things are crazy and some great minds have been exiting the world speaking of minds but also speaking of nassim taleb he wrote a great tweet eulogizing david grouper who was a friend of mine a friend of ours a friend of the show he's been on the show many times he's the author he was the author of debt the 1st 5000 years and i think nassim taleb who is an intellectual himself and a great author and you know thinker who explores ideas and is willing to be

challenged just like david graber was wrote david greenberger he was a real intellectual very real not one fake cell in his brain not one fake bone in his body he thought independently he was monstrously and original he had intellectual courage the world seems much smaller today than before september 2nd david rest in peace yeah he is a intellectual giant i guess you could say of this 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 and he 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 she's not. and as

a public intellectual so you don't want to show that side of yourself too much but privately and walking in me 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 a very funny man was well he was born 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 and graber one is stridently pro-capitalism the other anti but 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 sides 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. leverage 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 and really broadens the debate and adds 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 steve 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 as one of the results of the that continuously unfold 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 and bracing a 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 war 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 of 5000 years of debt in no 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 fencer ship this 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 was either you know wall street or some other place but registering into this strange brace now 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 and to a large degree now i have perpetual live at home so the dynamism that would be coming with new household creation is dead in. and to a large degree we have perpetual all money printing money and money printer gober so we have this deadening of 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 he wouldn't he shouldn't need a degree to do a job like management donald 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 . introduced 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 yet 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 seventy's trap where there's going to be conflict because that where we call them economic compare. are the ones at the wall are jobs u.s. trade deficit with china wider that 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 ripping the u.s.

on trade right through these policymakers presidents think tanks that are idiot savant but mostly it is very little savant yet 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 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 it's 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. as a developing nation so they get to impose huge tariffs was because their euro was being introduced and if the euro is being introduced the dollar was going to have a problem being reserve currency because they needed people to take dollars they needed it 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 u.n. 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.

there's a war of the most recently of the police or the most amazing issue to the. center but it sounds the guy. i am slowly as a name for

a list of. the most. and losing this war with them is so cheap that those who don't use it. it boils down to his belief the book with their stuff just doesn't let them sleep he was obviously. by the up in the media of course free. and. welcome back to the kaiser report i'm max keiser time now to return to our conversation with tommy cost of cross-cut capital tabi welcome back max price 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 text of us in china also in a 2nd but let me get your comment on this berkshire hathaway warren buffett they invested 560000000 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 what you're doing right absolutely i think those of those news that you refer to are all very symbolic for this area for this industry and what's

important to note 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 moderate and then just more apple's market challenge and this is not perhaps. just a punch 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 who cheat. a lot of the environment's one turns of her for 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 ringback in this market if there is not enough funds that want to participate in this you can be sure that if every service 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 charge 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 prefer to focus on my knee my knee matters in general gold and silver is the pain part of performing 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 that it's going to be the mining space and so i think if i'm right there it doesn't need a lot of influence 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 sends up being a giant ponzi scheme as we'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 were 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 that serves as as an alternative for the monetary system so i think to dissolve and he sure in more and more the federal reserve will be forced to participate more in this. debt issuance 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 senate 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 to deliver cash balances almost as large as what it's going to be probably closer to treatment 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 5 i think that's why they are hoarding 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 this is $8.00 trillion dollar so they

would be mature enough less 12 months i'm wit with going to happen is the federal reserve is going to have to explode to the upside in order to hold those if we do see an environment where large funds and investors in general are starting to run away from treasury markets 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 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 top 5 percent subtracting from the g.d.p. number now you've got to make it a 4 percent right now they it and i right in saying mass and that they there are

basically psychotic in their approach tommy 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. maryland also have a i think that's that think that's that's a good answer now i mean to skip ahead to that china here 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 do you see 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 $12.00 to $16.00 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 it happened wolf wife has a new up 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 and now it's probably close to a clue to a trillion dollars of net debt and so you know and we're not seeing 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 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 chile 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 the species with a few 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 started heat up that certainly can create

a dysfunctional. a supply environment for commodities too we've had many wars actually cost commodities like oil use search in the past the could be certainly the case here again so i think commodities are poised to move a lot higher and i think precious mows are probably going to be the leader of. this market reaction power 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 guest tommy. crest kept capital if you like get in touch tweet us at kaiser report until next time by your .

was a pandemic no certainly no borders and obliging to nationalities. has emerged the we don't look like seem. to be. judging the 2 commentary crisis like this listening to. we can do better we should be better. everyone is contributing it's your own way but we also know that this crisis will not go on forever the challenge is great the response has been so many good people are helping us. it makes us feel very proud that we are in it together. it.

seemed wrong. just don't call. me. yet to shape our disdain to educate and indeed train. the trail. when so many find themselves worlds apart we choose to look for common ground. the world is driven by a dream shaped by one person with those great. military things. we dare to ask.

trade and investment to become magic spells to come to economic development. most people think about trade they think about goods and services being exchanged between countries and the invest for a chapter of a trade agreement is about something very different but what one investment leads to toxic manufacturing that destroys sacred sites all ruins the environment. that means 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. the nationals are taking on the whole nation philip morris is trying to use i.s.t.'s to stop oregon by implementing new tobacco regulations aimed at cutting domestic smoking rates a fringe company sued egypt because egypt raise its minimum wage democratic

choice over trump corporate law joining us as we try to find don't want to. despite germany saying it's the refusal of the russian opposition figure out explain of ali was poisoned with russian doctors who 1st treated him claim that special fiction almost show them all this evidence. senior figure. rested on the border with ukraine but in different versions of events president lukashenko tries to shed light on the incident in an interview with russian journalists. the british government's handling of the it has forced many national health service to consider quitting to a new poll. for cooler thank you nothing ya think.