that will define the economy but if it doesn't we will look at stagflation. a very slow and sluggish economy with the gdp at 2 percent annual rate. maria: we are expecting a deal in us and china but now meeting between the chinese president and present travel not occur until april china made by more soybeans opening to financial services but the big-ticket issues like it theft, forced transfer technology, espionage has not been addressed. where are you on issues around china? . >> i am right where you are. they have not been addressed. and to understand what this is all about basically tariffs are an excise tax. if you impose tariffs on goods ultimately you create a system which is imbalanced. the trade wars for both parties because they are creating taxes the country that wednesday trade war that the ideal state of the economic system of the powers that are nonexisting that with the united states is an original source of revenue. maria: which is why the chinese economy has seen an impact with the slow down and you have to believe ultimately the us has an imp

enter into a condition where i call global intractable inflation in a profound basis case a global stagflation that's was coming in the next couple of years right and to do a global race and of course you would need something to stop a against and the name that comes up of course all the time would be gold and i want to talk about gold and palladium here for a moment so give us your take on gold and also play to him because palladium is a record record high for palladium you know you know if you look at precious metals i'm a little dumbfounded in the fact that they are soaring right now i mean they are doing very well compared to what they're doing in two thousand and fifteen but max when you have global central banks don't forget he's seen be threatened to raise interest rates in the summer a year ago now where are. they going to another third round of t l g r o ok so are targeted long term refinancing operation now the bank of japan which owns almost fifty percent of their it's higher equity market never even threatened to be able to raise interest rates or even stop. so you know if you look

one at the end of until 1982.m 1979 the word that defines the economic troubles of this time is stagflation, inflation mixed with a stagnant, slowly growing, if not, not growing at all economy. and rising unemployment rates. you see inflation by 1974 hit 11%. it dips down in 1978. by 1979, it goes back up again. inflation in the u.s. economy begins in the late 1960's. the economic pressures of the vietnam war, coupled with the great society, put pressures on the u.s. economy. once a country experiences inflation, it can be devastating. not just economically, but another example of losing faith in the institutions. in this case, losing value of the dollar. very high inflation erodes the value of the dollar and sake in -- faith in the dollar. the mid 70's recession coincides with the great oil crisis, when opec, the organizing nations, mostly the middle east, also including venezuela, nigeria, put an oil embargo on the u.s. for u.s. support of israel in 1973 yom kippur war. it is a retaliation for the u.s. siding with israel. it's at this time the u.s. really comes in on the side of israel, i