Never ending up months in the dow jones while hes been in this first year president well its not hard to explain why please explain x. Guys or you know markets tend to go up and down based on things like the Business Cycle which is tied to Interest Rate cycles tied to global trade imbalances and trade cycles but what weve seen in the last twenty years in america and in the last ten years in particular with Interest Rates near zero effectively the Federal Reserve bank has opened the door to the vault of the s. And p. Five hundred it allowed a few corporations to run him and guerrero all stocks at zero cost to them through Mergers Acquisitions stock buybacks this is what i call america being taken private through a massive leveraged buyout financed by zero percent Interest Rates. So there is no i dont i dont think the world there will ever be a down market in that one were we are leaving the era of a free market capitalist system in america were entering me all feudalism so theyll be a few private equity funds a few hedge funds and a few mega corporations that will own ninety five percent of all the equity and everyone else will be especially serfs ok this is donald trump like to say putting all kidding aside is that hes engineered meal feudalism in america those who go with them are not opposed to it because theyre being paid off its like when brits burn it into slavery they did so by paying off the slave masters a huge amount of money here in america theyre ending free market capitalism and theyre doing it by paying off the oligarchs american oligarchs huge sakho money and full stop it well get into some more of the particulars in a moment but i want to turn to another headline regarding tax cuts in the past and you know they call them the tax holidays to encourage corporations like apple which has hundreds of billions of dollars sitting overseas that they repeat treat their money and bring it back into the united sates and the theory under obama on the theory under you know george bush the second was that this tax holiday would somehow encourage more jobs and growth in the economy well it never did firms spent ninety four percent of two thousand and four tax holiday benefit buybacks and dividends so mr dharmapala coauthored a working paper for the National Bureau of Economic Research that found that after companies brought back cast during a tax holiday in two thousand and four they spent seventy nine cents of every dollar on Share Repurchases and fifteen cents on dividends so it just goes back to that you know basically its one percent of the population or the top twenty percent that own. All of the shares of the s. And p. Five hundred so its just going to a few people its giving back money to the oligarchs take notes here because youre making such excellent point. And its mr dharma yes university of chicago this lets talk about the jobs wages of purchasing power so this is not about jobs in the sense that you are creating jobs with wages that are meaningful in any way and additionally because of the massive printing and bailing out of banks. Everyones purchasing power is eroding quite rapidly so they say theres no inflation thats a lie because its a miss smith interpret saying the salient data one needs to look at understand if this economy is in fact growing in any meaningful way this is the stock repurchase that you just mentioned again fueled by zero money i can buy this building easily if i can borrow money at zero percent i can to make any offer in the world i want to make i could offer this studio for a billion dollars make a difference if the interest im paying on my loan is zero i can offer anything if im if im buying a corporation for ten billion twenty billion thirty billion fifty billion dollars using borrowed money and i pay zero on that money then i can make any offer i want i get all the income from the slaves the american slave class the permanent american underclass so dividends the buybacks and dividends most of it went to the rest of it did not much go into Capital Expenditure i invest ment in the future of these corporations here in america and thus wage growth or job growth in fact a lot of the rest went to mergers and acquisitions so i jobs getting cut because usually when theres a mergers and acquisition you see job cuts because thats how they create efficiency they cut half the. So in fact the tax holidays could actually be worse for the number of jobs rather then but its great for the stock market exactly the mergers and acquisitions youre filling in all the details of exactly what im saying there that the d. N. A. The mergers and acquisitions are consolidating to the oligarchs that the jobs are being cut some but job growth which creating jobs ok replace that puckering Little Orange lip with you know a strength or because hes talking nonsense. And the record proves that the data proves that in a reality driven world that thats clearly proven if youre in the stocks youre getting a big payout america is being sold out essentially and it costs a bunch of money and people are taking a sack of money americas dead dead dead dead because of this letter lets talk about the other situation here is that on the one hand you know now the democrats and m s n b c source are saying oh donald trump is horrible and these are you know a giveaway to the oligarchs just as weve just said here but the fact is they reduce our taxes mining yours to what we were paying in the United Kingdom and the United Kingdom has a National Health service they have more of a welfare state than here less so than europe as theyre getting dismantling it but that raises the question well how progressive were our tax rates and are they because all of our taxes now anyway whether theyre forty percent or twenty percent or ninety percent or ten percent all of it goes to the military industrial complexes connected guys to the military none of it goes any way to Health Care System or you know a more equitable distribution or economy it like that protects some of the weakest amongst us so. Why are they not addressing where the actual. Exes go if they want to be progressive you know the democrats are the ones remember it just at the in the budget when back in august or september trump had asked for liking it to ten percent increase and the pentagons budget and they were like no no no fifteen percent you have to take more so they added like billions that trumpet and even asked for so where thats regressive. Why what where they now saying virtue signaling the how progressive and liberal and and how they care about the poor people like what why now and why did they focus all of their media air time on a foreign country over there in russia they didnt focus on domestic policy nobody even knew about this stuff until it happened look the Corporate Tax rate in america for this and p. Five hundred adjusted for tax tax avoidance and tax loopholes that last year was roughly five percent yeah post this tax reform will be roughly five percent their taxes are going to exactly be exactly the same they dont pay taxes General Electric at a seventy thousand page tax return that they filed and they paid zero tax as a matter of fact they got a tax rebate so the tax rate for corporations will be the same but this idea of lowering taxes is a vote grabber its propaganda its well its probably get passed through taxes for small and Medium Sized Enterprises its not general logic its not a pass through apple is not a pass through Fox Corporation news corp or not pastors these are mom and pops these are like people with one hundred thousand two hundred thousand three hundred thousand dollars sort of income there yes but i was the point is made before is that theyll simply raise the obamacare premium any tax yeah other words youre not youre not going to see that day now youre not going to get in your pocket as it was whatever gain well have always have to go to Lockheed Martin and rate the fact that thats what we have here. You also mentioned savings and i wanted to bring this up this is a tweet from the st louis fed a tweet. From them this is before christmas but you know i was so busy hypnotizing you say no and youre so reason unburdened of that hundred thousand because that was weighing down on my conscience well this is from the st louis fed im talking about savings and and the economy remarkable negative Interest Rates may seem ludicrous but not if they succeed in pushing people to invest in something more stimulating to the economy i think government bonds so theyre floating negative Interest Rates and that this may be a good way to get people out of government bonds and into something more stimulating to the economy like what whats more stimulating to the economy at this point more more Lockheed Martin some more drones surveilling us or what the debt for households in america if you have the National Debt the unaccounted for debt like Social SecurityMedicare Medicaid the corporate debt and yet all that debt together i havent seen the numbers lately but its something in excess of five hundred thousand dollars per household and because the debt sellers wall street packages that sells makes money and profits and fees from debt they feel like they need to make even greater profits they have a big fat cattle prod that they stick to everyones back and they say negative Interest Rates are good for you go buy more go give us more of your money go into debt go buy a margin going to give us more so this is abusive essentially wall streets been given a cattle prod and a noose and you can take your pick either you get electrocuted dear death or were going to kill you and crops like make america more larcenous thick and more deadly thank you trump. Hes the last american president i predict a zero state turn for the second half a lot more coming your way. A robot governments can be much more rational and much more compassionate than the. Oligarchs human governments and. People will be more happy with the new situation than they are with the it was because. In two thousand and sixteen the panama paper has shown the world with a tax haven the secrets two trillion United States dollars pass through most. In the amount of time that weve been in Panama Papers exposure thats what it shows a lot of money it really is. Journalism its an act of journalism looking at things that people want to keep secret and asking why would they want to keep these things secret. Millions of. Dont you months where examine. All the people we basically have tried to get an advantage out of this thought it was used. And probably other politician which were. Other politicians the media were quick to find their targets such as the kings of morocco and saudi arabia the president of argentina several prime ministers. And russian president Vladimir Putin of course. That had so i have sued so many newspapers to defamation some things dont just happen by chance he was very striking there were no more americans to go specially along. Off people from the brics countries specially brazil russia and china that their special project reveals what was missed in the media coverage. The panama chronicles. Global was selling you on the idea that dropping bombs brings police to the Chicken Hawks forcing you to fight the battle to stop. The new socks for the tell you that somebody gossiping tabloid lifestyles of the most important. Off the bat telling you are not cool enough and lets invite their. Kids are the hawks that we along with our loved ones. I am welcome back to the kaiser report im max kaiser ai or here with michael found out my call how are you im doing great thanks for having me back max i should mention you were a cunto port so penta portfolio strategies penta port your money manager i do youre a gold lover you are kind of hedging your bet during these gold times of flatness to juice the returns a little bit so youre in the market inflation deflation portfolio doesnt just buy gold and short stocks all the time not a stopped clock here we do this so i have dividend stocks yeah i think the market has a few more months of fumes to run on or run over the cliff before falling a wiley coyote before they drop for christ actually craters lets talk a little bit about that so the market is defying expectations by continuing to trade higher whats driving it i mean come on the whats rival take a guess its built at what point now its fifteen trillion dollars of artificial little money printing from the Federal Reserve yet from the from the c b from the d. O. J. And you know the t. B. O. See you have silly you know lets just talk about how overvalued this this market is the market cap of stocks as a relationship to the economy is now a hundred and forty two percent maxwell one hundred forty two that has never happened outside of the very tail end of one nine hundred ninety nine and just before march of two thousand yeah ok so we are about as overvalued as weve ever been in the history of the market the average of that ratio was fifty percent so were stream we dangerous here and it doesnt have much longer to go before absolutely craters in my opinion ok so im going way way so right so so right because you really should be hedged right now if you just if youre a buyer and hold situation be hedged i got a question for you speaking about Central Banks stanley miller. Who was thirty percent annualized rate of returns george soros as money manager considered to be one of the best you know of all time he was on t. V. Recently and he said that the fed should stop their engineer deflation and deflation and they because all theyre doing is causing i suppose engineer deflation other words by keeping Interest Rates low right they are engineering the deflation in that they are keeping the zombie banks alive and design the banks were to collapse that oh it would collapse and then the bond market would collapse and Interest Rates would go to a more normal four percent five percent on the on the treasury bond well i tell you what the fed did do along with the other e. C. B. As they destroyed the entire free Market Worldwide there is no more free market when they did that by pretty existing trillion dollars taking Interest Rates to zero percent why so you and i can borrow a lot more money you know that the spent the savings rate on consumers now has plummeted to three point two percent used to be ten percent for decade after decade but people are not buying mind the velocity of money is that the savings rate is three point two percent its bad acts max weve weve powered on as a nation eleven trillion dollars of debts since two thousand and eight. Were loaded with debt and for every one percent increase in Interest Rates mr druckenmiller says ok lets let Interest Rates rise which is what would happen if Central Banks that the way the german boom is thirty basis points what the hell is it doing at thirty basis points should be four percent look at nominal g. D. P. Thats where the ten year should be the ten years thirty beeps one third of one percent should be four or five hundred basis point right ok for every one hundred basis point one percent move up in Interest Rates we pay an extra two hundred billion dollars in interest expense ok consumers paid seven point four billion dollars in credit. Card interest just because the fed raises raise rates four times ok we cannot tolerate real Interest Rates because this overvalued bloated stock market would come cratering down i advocate i defend mr druckenmiller we need to get back to reality in the stock market let the markets dictate where Interest Rates should go right but dont be fooled we would have a deflationary depression that would pervade across the globe and im all for it because thats the only were we to get back to a sustainable viable economy in the world im a little bit worked up a little bit upset because of this because people are being. Theyre crying over their crowded into these bubbles which are extent all over the globe and theyre going to get crushed and the sooner they burst and they will burst its inevitable the sooner they burst the less people get injured well its beyond that because and Merry Christmas but yes and when joy our figgy pudding. But its too late you know because theres not going to be a gradual all rural ization of Interest Rates is going to be in a horrific crash because if ever they bail out the creditors in two thousand and eight and they just gave more money to build more leveraged ponzi schemes in the sky with v. M. Money and fractional reserve banking and multiples and stock buybacks in a stock buybacks to be illegal on the other legal and so this one falls off again itll be catastrophic that we already have so i mean i understand youre positioning yourself you know youre hedging yourself youre ready to go short you think gold is something to go to in rational rationalization of markets right. Now though we have all about ten percent of the portfolios in gold because gold is not like rising real Interest Rates so right now you know we have mr mr powell coming on to the fed genuine is less stand is going to be today if you will today which is a recorded interview but she was going to raise rates again today december thirteenth that were recorded interview she was supposedly going to raise rates three or four more times in two thousand and eighteen mr powell will be the one doing that not janet yellen and that means nominal rates or will be rising real Interest Rates will be rising and thats not very good for gold which is one the reason why bitcoin is outperforming gold because because you heard a big point that being i was there i was trying to get your you know nice and not bring up it going but you brought it up i did you think you know nose under the tent. Now are sort of. I mean. Well i mean its good for you congratulations oh come plenty great job only because ive been ive been asked about big point for two years now yeah over two years ive been dead wrong ok but bitcoin is not gold two point zero its not gold zero point two big coin if you understand a little bit Technology Behind it i think you have a price. Vicky you got a public key what are they its just about sixty four numbers in letters numbers and letters are endurable numbers and letters arent rare numbers and letters arent money unless theyre backed by the taxing authority of a government or the or the us is military might. Theres a thing about it is anothers if these numbers and letters were backed by gold or oil which some private blog chains do then they have money but theyre certainly not rare theres a thousand plus of these currencies out there and if i was you im going to give you my early Christmas Present take some profits ok that thats your thought. On one couple of points so one aspect about because it gains a lot of attention people like about it is that they can divorce themselves from the Financial System they dont need to be associate with a bank they dont need to have anything to do with the Banking System right theyre completely outside of the Banking System thats extremely appealing for a lot of i understand completely ok and we all know that you know that the value of something is what someones going to pay for it absolutely and the price to get out of the Banking System and into big coing is that currently what the price is number one decentralized it in the digital did they didnt feel as action speaks to the security of bitcoin he said that theres nothing particularly sacred about the numeric alphanumeric keys etc but it is an encrypted protocol that is secured by network of nodes that audited every ten minutes that give it. Anticensorship qualities no government no i look at your about income in there as you can and muck about i love that number two ok number three yeah there are other cryptocurrency but nothing at this particular configuration of all the elements that make up the Technology Just like gold is number seventy nine on the periodic table. You just money dont you dont use you know. Plutonium as money for reasons because it doesnt have the physical qualities you would want in money as gold and silver and same thing with these other cryptocurrency is there theyre out there but then again with gold you have other Silver Plating and platinum slimline i know that theyre not making new elements every day. But but somebody i know its essential as when somebody decided hey lets fork this thing and lets make good coin gold big point and then you have a theory and i like pointed out biggest in the market right well i know the whole thing is three because three hundred billion dollars one third the size of Apple Inc Inc is a very small market and it was an n. B. C. Has a much lower as big going week this week oh its. You know everybody has an opinion about because bitcoin theres been here but a commentator said fifty trillion money printed yeah theres a bail out banks that are out what value did that money have in physical reality if you were to stick it all into a room and you were to examine it in terms of its Intrinsic Value beyond the printing on the paper we comparing currency with bitcoin if t. Ireland of worthless junk its disgusting its big if you know your just about the pen the defending currencies if you need them to pay taxes and theyre backed by the military of the country heres my problem and the biggest problem with crypto currencies is this and im going to ask you a question as i might i want your opinion on this if the government wanted to shut down the currencies i believe they could do it very easily now and let me explain i know they couldnt shut down the entire network but could they been bitcoin exchanges if they did so which they could do coin base and all these and they could do it very easily liquidity evaporates over night. Then they could make it illegal conduct commerce in big point you need an application to use your big point very public application if if i could see it the government can see it so much going to risk fines or imprisonment why is the government and i another Conspiracy Theory person max but why is the government allowing so much rope for cryptic currencies to hang themselves with i believe the government understands that were going for another recession slash depression like weve never seen before in the globe and theyre going to need to abolish physical currency and they want the public to get used to using Digital Currencies were going to get something called the fed coins in the near future which will allow them to impose negative nominal Interest Rates in the Banking System and thats the reason why theyre letting this crypto currency craze get so out of hand you bring up some great points and and youve done some reading since the last time you were on the show well you know i just starting to. Bubble this up to your no not really to unpack some of the points that youre making first of all i would agree that the exchanges are a point of vulnerability because the on ramp from fee out to crypto around these exchanges the exchanges are vulnerable in two ways dumber one that as you point out they could be outlawed in some way or shut down by the government number one number two we have a lot of banks out there that have been seeking and have been granted various patents and under patent protection and patent law they could claim that these exchanges have to be shut down under intellectual Property Rights and i know having bans myself in this area how that could happen absolutely the other point in terms of migrating everyone off into digital coin or those digital coins that fed coin would be would be a coin that has a time element to it like either you or your you get money but your money expires like a coupon and thats one way to get people to spend it to get out of doors or to. Negative internet made interesting right so thats a built in to that the need to have an interest in this then what about philosophy the loss of your money skyrocketing yet where inflation well it would because youre going to find Something Like that max max well i agree versal basic income zirp nerve oh oh oh oh oh oh oh out there minute we got to go can we pick us up at a certain excitement this is a real cliffhanger oh wow theyre right there. Oh no i gotta go but. For now thank you Michael Pancho thank you for being on the show this is by the kaiser reporter can catch us on twitter a cause a report and. Bio. In some American Cities the police have built themselves cling to reputation people who walk on the street to be United States who are at risk from the very people who are supposed to protect that poor people and no more afraid of police than if. You can see something happening and this is like i dont want to call the cops let that happen rather than call the cops in those young black men lose their lives chasing the good with the thing goes on the trigger you never know better safe than sorry i dont know that someone else is going to gun yet unfortunately around around here we end up killing our guns all good dont steal from so much preclusion this place to. What politicians do something to them. They put themselves on the line to get accepted or rejected. So when you want to be president or injury. Or somehow want to be. The two going to be close its like well before three in the morning cant be good. Im interested always in the water out. There should. But. Look. Theres no problem with a neat little. President piercing confirms an explosion at a supermarket in some was a terrorist the timing. Of the attack is still unknown. To his from his city families in iraq who were previously held as slaves by islamic states the bulk of those abducted remain missing. I was pregnant but i was so terrified lost my child my husband and my family were captured i was left alone with my mother so we took the boys and i decided it was better to die. And facebook reveals it has a unit to assist politicians in their campaigns boasting that it helps the Scottish National party and its law