struggling to hold on to its ceasefire the conflict between armenia and azerbaijan sees only sparing moments of shelling attacks continue to hit areas in and around. armenia is accused of bombing in azerbaijan the city outside the immediate conflict zone leaving 9 dead and dozens injured or to exclusively interviews armenian president. we should not. forget. the real start to this stage of war but it was. clearly. russia's coronavirus vaccine is poised to complete the final stage of our correspondent is among the volunteers taking part. in the british prime minister

was a complex set of new set of rules to counter with partial lockdowns in the north of england but there is growing public over the government's handling of the christ. our exclusive with the armenian president will air in full here on our team international in the coming hours for more details on the interview the conflict and what is happening in your part of the world you can. i am max kaiser this is the kaiser report i'm here with guillermo who is a bit of one of those for many years since we visited mexico city hello vo nice to see you again carol want to let you know that there is a telegram group max and stacy telegram group and you're invited to join just go to t a forward slip orange pill and you're in that's all that is by saying that

correctly now suzanne you're well as for a task i guess i got it right stacy what are you up to. i have to say when you say that you know the report the telegram group we get inundated with people especially from cuba and venezuela lots of audience members there you know the 25th amendment of the united states is in the news this past week and because you know nancy pelosi saying we should have a running commission to determine whether or not any of our leaders are the lead and i thought you know what that would be really cool if we have a 25th amendment for our financial system and the heads of the central bank years of low interest rates made the current economic crisis worse says fed's rosengren boston fed president aircrews in red said years of low interest rates that encourage wrist speaking are making the current economic downturn worse he specifically cited low rates persisting for an extended period even after the

economy had made progress in the recovery that can create problems well this is obvious you know as i've been saying you can't have capitalism without capital you can't have capital without giving people an interest rate to incentivize them to save. and the reason to do that is that if there is a downturn like a covert then there's plenty of state stuff there's plenty of capital in your family system to smooth it out but if you debase the currency and you interest rates are 0 and there's no incentive to say therefore there's no capital then you don't have to apples and any more you have a club talk or see run by central banks and the worse it gets the more they pay themselves and of course lower interest rates re the crisis worse because low interest rates drained the economy by all capital and without it you will at the 1st. encounter with

a pandemic like cove it you all have an existential threat and maybe or maybe not the us survives it's up it's an open question whether or not the monetary system survives is what is being called into question and here they are doing the equivalent of oops my bad even the report has been warning about this for years they could have listened to us and said they have a slew of overpaid economists in ivory towers that tell them whatever they want to hear and perhaps that's the problem perhaps the set up perhaps because there is no 25th amendment where the people can take out these you know economists and the heads of the various feds across america who keep on getting it wrong he's like my bad clearly a deadly pandemic was bound to badly impact the economy however i'm sorry to say that the slow build up of risk in a low interest rate environment that preceded the current recession likely will make the economic recovery from the pandemic more difficult it is making it more difficult but then another fed economist is telling you how difficult it's going to

be it's going to be difficult for everybody because what's their answer always money printer go prove top that economist says another $3.00 trillion dollars in q.e. is needed senior fed economists and deputy director of the banks financial stability division michael kiley and according to a paper published. by kiley the fed will need to monetize deficit part in purchased bonds equal to 30 percent of g.d.p. or $6.00 trillion dollars in order to offset the impact of the 0 lower bound and since the fed has already purchased a record 3 trillion in bonds since march that implies another 345 trillion and q e is needed well you know how it is coming up so let me give you an analogy in an example using hollowly you know when you're a kid and you're out there trick or treating and got a bag and you're putting free candy into the bag and you're like this is great i'm getting free candy well after about a half hour 45 minutes you get bored with getting free candy you want to move on to

hanging out with your friends and enjoying the free candy in the period of collecting the free candy gets somewhat boring you're on set of eyes to get a more free candy you want to actually eat the candy or do something with the candy so here in america they've always taken the position that we just give away free money and that will never stop anyone from being incentivized for more handouts or more free money but history tells us that at some point the entrepreneur class says you know what if you're just going to give people money it's not fun we're not competitive we're here to compete to give away all the free money we're going to like under obama obama was very on inspiring and entrepreneurs' were not doing much during the obama administration they're kind of sitting on the sidelines waiting for something else to come along and that's the problem you need to have an incentive to compete to save to be capitalistic if you give away the free candy in the free money then the entrepreneur sit by and they move somewhere else so they just sit home and play tiddlywinks just on college competition usually drives

entrepreneurship and innovation and we have seen that for sure we personally have seen it here in kaiser report when we do our interviews because of the existence of zoom because you start started to eat microsoft's skype's market share we've seen that skype when they bought. it is from then the dutch company you know a decade ago they did nothing with it like the technology was horrible it's started to degree once they've bought it well then soon came along and what happened well they had to up their game and skype has been coming out with all sorts of innovation the same across the board tick-tock all these chinese companies want are much they see that the united states is vulnerable because of all the loops from central banks because we did not have a 25th amendment to take out the insanity to take out the insane policies to take out the q.e. to take out the money printed to take out there are clearly the 25th amendment would apply exactly this room saying this is my idea you know i put no ideas i'm an

ideas person you know really good and clearly the current chairman like the previous chair people would qualify as needing to be sanctioned or institutionalized for criminal insanity believe that you incentivize people by debasing the currency so much that nobody cares about her anymore and that's clearly an insane concept well exactly and i'm going to tell you so you know we were you brought up. the fed has been trick or treating this whole time like you know giving treats to a certain group of people and that's i can tell you a fact and that's what we see with the wealth and income grat gap growing but they've been tricking everybody else into believing the stock market means like the economy is good that the house prices going up is a good thing for anybody needing shelter so they'd have a trick or treating but i'm going to show you something that shows you they are one of those like jason or free krueger sort of hollow and lean that need to be

sections that they need the 25th amendment and you can see that in this basket of chart data that shows how scary and terrifying it is but what is scariest and not that the fed will continue monetizing every single dollar of u.s. debt issuance for the foreseeable future or perhaps indefinitely which considering this. b.o.'s latest forecast means a long long time well this is federal debt held by the public 1800 to 2050 as a percentage of gross domestic product my color printer the ink looks really colorful lock the contrast there the off white lie and soft gray but the i mean it tells 1000 words the audience will get to see the full graph well but. they have it's trick or treat it's trick for me and think for them by saying what's going on is that the trick is can you comment on that chart that of course i'm a professional you know what it shows shows like world war 2 is back here that was the last time that there was so much federal debt now it's off the charts by 2050 s

with the congressional budget office is predicting the only way monetizing all this that doesn't cause inflation is if you have a debt sink to hide it so in america right for example they like to send soldiers out around the world to die and that's the way to get rid of a lot of debt and let's be honest they've got a lot of collapses going on the bond market but that's bought by the central bank that hides to the inflationary impact but at some point you get to a saturation point and you can no longer put that debt into a debt sink and so the money printing results in a runaway currency collapse like the weimer republic and so we're getting we're on the edge of that right now and that is sadly what that that short clearly showed exactly right. when you said money printing i thought you said bunny printing yes that films are on during easter ok here we're focused on hollowing christmas after the thanksgiving metaphors ok well 5 he fear is the final headline and kind of goes

with this whole trigger tree and the need for the 25th amendment for the money printers bleak outlook without stimulus more layoffs anemic growth president donald trump's move to cut off talks on other government aid package will further weaken the economy. they said obviously as soon as the markets crashed you know that's that's what that's what trump response to either he gets like trick or treat that's his his boo but the ghost jumping out of the forest you know i mean if you're saying kabuki theater a new movie theater japanese ancient japanese theater it's all style in no plot right the plot is not there's no plot it's the same story over and over again but it's just about the style of it it's about the costumes and it and it's about the gestures it's the highly stylized it's extraordinarily stylized but there is no story there in the kabuki theater that is that it everyone doesn't already know before they go into the theater right exactly and so this is the equivalent in the

pot do i think is to say the dance between those who are claiming that we need tighter restrictions on monetary and fiscal prophecy and those who are going to just print money the net result like in the book is it or it's anti-climactic because you cannot taper a ponzi scheme the answer will always be more money printing that's that's always the end the only thing different is what color hat nancy pelosi is wearing or what color tie donald trump is weren't during this kabuki esque but highly stylized dance of of the of the mediocre and so it was not the end oh another 5 showing the money printing that's that's always the conclusion well i'll tie that also with back to our metaphor of hollow mean the day of the dead you know the do those marches where they wear the skeleton thing and carry the yeah so if your mom is ready for day the debt well that's the day the debt is our markets right that's our

monetary system and our markets and right now it all looks fun it looks like we're having trick or treat and we're all getting free candy and we're having you know a kooky theater of fun but at the end of the day when we all realize we should have sectioned suspension bankers years ago. basically in 20082009 i went when well when decline came around because chances are i'm going to 2nd bailout for banks that's that was a big question section and the central bankers that's a big point it degree of fact i am. certain you are well said well thanks for watching and the 2nd half are going to talking to pierre rashard in an excellent side but they won't want to miss.

join me every thursday on the alex salmond show and i'll be speaking to guest of the world of politics or business i'm showbusiness i'll see if. the world is driven by a dream shaped by one person. thinks . week here to ask. we're going to update on the cease fire negotiations in moscow on the issue of the

border. is a war on coal but also home for populism on the left and right. welcome back to the kaiser report imax keyser time now to turn to pierre irshad who is not only famous a bit coin space but our all around great content provider a nice guy pierre welcome to the kaiser report thanks for having me max happy to be here big news and big calling we got the jack dorsey company square in out this week that they bought 4709 bitcoin worth about 50000000 dollars for their treasury what does the company statement tell you in regards to the reasons for buying because this is obviously in the wake of micro strategy and michael saylor doing this is this the beginning now of the 4 trillion dollars worth of cash sitting on

a corporate america's balance sheet being looked at and possibly other c.e.o.'s following suit with a fair missing out or a full mo in the corporate space here yes it is but i would also highlight that this actually began a very long time ago which is that in 2013 slash 2014 fortress investment group became the 1st publicly traded company to hold big client on their balance sheet and i remember because i'm an accountant and i read financial statements and that was interesting to me because i was also a big corner. and then it's fun out in it became no regrets you know that. galaxy so it's it started a very long time ago but it did it at the time it did not gain acceptance and that's why fortress had to spin it out because the investors were not happy about the losses going on there because anyway fast forward to this year we have

this current of virus hysteria or pandemic whatever we want to call it and. you know it became apparent that central banks were. going to let the markets do what the market is supposed to do right which is reflected the real economy and the really kaname has been crippled by governments responses to the current a virus or the crown virus itself depending on who you ask. and they papered over those problems by q.e. infinite money printing right globally and it became apparent to michael saylor that you know if he's got cash on his bouncy and he's got us dollar denominated you know investments. cash equivalents as the accounts call them which i find to be heretical but any any case so he's looking at this saying he's

wondering what does cash even mean what does the u.s. dollar even mean if they can just create as many as they want and that actually came off as subtly different than jack dorsey is reasoning with this latest announcement of 50000000 where jack is really looking at it from a. kind of a values perspective rather than a value perspective and so he's interested in and empowering individuals and you know increasing the economic justice in the system and it's interesting because you know jack b. can buy 1st of all offering the sale and purchase of decline through the cafe. and then he moved into open source with square krypto which was also continues to be very successful and now he's moving into holding it and i kind of see this as the the trifecta of being involved in becoming as i said 1st of all increasing because of quiddity is crucial you know liquidity is the only utility of any money

ultimately and then improving kind of the engineering fundamentals of it so that we can really push it forward as a technology and serve actually holding it by. lots of it and that to me is the triple play that jack is doing that is fantastic now i think that his. his reasoning and if i contrast their compare it to for example paul tudor jones or michael saylor i kind of think it reflects that there's 2 camps in decline and i don't think they are intact mystics rewards each other or anything because i actually think that they're moving in the same direction which is that you have people who have an ideological tilt towards it and others who are just doing it because it's in their rational economic self-interest and so it's kind of a idealism versus pragmatism so. that it's an interesting dichotomy now

obviously we all have some idealism and some pragmatism to varying degrees but i think in decline it's there's 2 camps developing where on one side you know it is that politically engaged idealism which you know came out in the spat between brian armstrong and jack dorsey as well it's a thread the goes through a number of different interrelated narratives but i've rambled on long enough max let's go back to the fortress comment you made there so fortress being sexually money management farm and big coing is seen as an asset a new asset a financial asset it's not. it's not you know much of a stretch i would say for them to consider putting some big coin on the books that was understandable but what what what sell what michael saylor is saying is

that he had a choice to make he and his board want was to buy back stock boost the price boost executive stock option value at the set the what's being done across the board in corporate america. principal apple the biggest of all or by bitcoin so it pivots on what they believe the fed is up to and it seems to may and based on michael sales comments they believe that the fed is that an inflection point where the inflation genie is about to come out of the bottle and all the stock buybacks in the world are not going to save you and you need something that's going to protect you against inflation and it debasement of the currency the dollar and there's only 2 choices gold and bitcoin and the fastest horse in the race as paul tudor jones is set is bitcoin now having said that let me pick your brain you

mentioned you were to some degree still are an accountant you have got advanced degrees in accounting you've worked at the highest level of the profession of accounting you've been in a lot of boardrooms you've talked to a lot of c.f.o. than c.e.o.'s let me ask you this right now in corporate america what the 4 trillion dollars of cash sitting around the conversation i want to get your thoughts on this isn't that conversation almost by legal obligation being discussed in this is to wait across corporate america about should we be buying big going because not to have that discussion could be construed as malfeasance and that would be of course a shareholder issue that boardrooms are keen to avoid yes i agree because frankly any competent financial planner would tell you that you should not hold a material amount of cash because of inflation and that you need to put that cash

to work now you mentioned you know give it back to the shareholders or or or keep it on the balance sheet right let's just start with that we want to and say what asset on the balance sheet. and then we have to turn to. why do people hold 'd cash in the 1st place well it's and why do large corporations hold cash it's to hedge or to minimize uncertain future cash flows or to manage that risk right of uncertain future cash flows now for an apple or for a microsoft what are uncertain future cash flows well the major one is m. in a activity right so are they going to have opportunities to acquire competitors or companies that are not competitors today but you know synergistically become this massive conglomerate and really you know cash on the balance sheet is about having the ability to execute on their corporate strategy long term and it's not

necessarily the case for apple or microsoft that they're going to have an acquisition opportunity that is interesting within the next 5 years right it might it might take 15 years or 20 years for them to identify a company that they would like to to acquire and so to they have to hold something they have to hold some kind of cash now people say well they don't need to hold the cash they can just give it back to the shareholders right here's the problem when apple or microsoft has an acquisition opportunity and they're not holding any cash that means that they have to go to the public markets to raise funds right so they have to get financing from the public markets now sometimes the public markets are not providing favorable financing even to large corporations right so what if apple microsoft wants to make an acquisition you know at the bottom of the crisis in 2009 and they need to go to raise $50000000000.00 in the marketplace and they can't do

it right without begging to warren buffett and getting praise selling preferred shares so that's where having the optionality of holding on to cash is crucial now then which cash to hold right because there's lots of. different currencies one to hold usually you want to match or your currency with the liability right what is the cash outflow going to be so it's not clear that in 20 years that will be using u.s.g.s. the cache outflow for making a large acquisition right if we project out 20 years maybe the us all are going to exist anymore and because it will be the standard you know you're talking about cash in the balance sheet and its nature in terms of corporate environment and what is good for and but what i'm saying is that what michael saylor and micro strategy seems to be saying is that were early having the era of the so-called greenspan put or bernanke he put or janet yellen put jay powell put where the fed will bail

everybody out always and there will be no real price discovery and are entering into i guess you could call it not they central bank put but more of a central bank call so you're buying bitcoin as a way to play the fact that central banks have failed it's a bigger bigger story than just oh strategically we want cash on the books because they might make an acquisition i mean i'm asking in your opinion is this a repudiation of current fed policy and have the recent inflection point and as we get ahead now toward an inflationary environment and see some serious serious problems with the world reserve currency the u.s. dollar certainly warren buffett is getting out the dollar he's a 1st flying in to japan he's buying gold mining stocks and he's saying the dollars is doomed how do you see this emerging yourself i would say it's a continuation of the process of monetizing every asset in the world right because ultimately that's the only thing the feller's are of can do so they've they've

monetize bank deposits right that was the 1st thing they monetize then they recently in this past financial crisis they monetize money market funds and so they said hey you know you can break the buck anymore ok. they're monetizing the bond market so when bond yields are 0 percent they're just saying that treasuries are cash right they're just saying that that is now money because ultimately it's going to get paid back in dollars anyway now they're also monetizing the stock market and so now we have like tesla being monetize real estate in prime markets like london and new york has been monetized as well right people use real estate as a store of value and so people are hoarding these assets as as savings but not really as investments and we even see this kind of at the retail level where people are buying low cost index funds right at this passive investing trend all passive

investing means is that you are using stocks as your store of value you're not really investing because you think this business is going to grow you're investing because frankly you don't have any other choice right if you hold us dollars are going to get diluted out right when it doesn't raise but it goes back to why ma republic of the twenty's and the rice mark went to a trillion to one from one to one against gold right so this smells like hyperinflation to me but pierre restart thanks so much for being on the cars report thanks for having me on max this is fun and that's going to do it for this edition of the kaiser report with me max kaiser stay sarah but want to thank our guest pierre rashard going to find him on twitter you can find us everywhere so next time by all. over the forward to talking to you on. that technology should work for people. i

robot must obey the orders given human beings except when such orders to conflict with the 1st launch show your identification we should be very careful about social intelligence and that point all v.c. to the great transom. if you're. going to run various chozen with artificial intelligence will some of the. robot must protect its own existence as. is your media a reflection of reality. in a world transformed. what will make you feel safe.

isolation or community. are you going the right way or are you being led somewhere. 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. a dark industry comes to life in los angeles every night. dozens of women sells their bodies on the street many of them under-age. los angeles police reveal a taste of their daily challenge no if you're going to exploit our child here in los angeles there we're going to come out to see officers going undercover as 6 workers and customers to fight the 6 trade.