Those are this is the kaiser report whats happening in the global world well max you know theres been a lot of topsy turvy. Especially emanating from the global empire that is United States and that is causing a lot of distrust of whether or not our trade deals are any good or whether or not our word is any good whether or not we might invade somebody whether or not we might you know spy on an ally like we did under obama with Angela Merkel for example like so theres a lot of distrust going on and of course the diplomatic speak is that were all fine everythings great everythings going to be sorted out and this is just the art of the deal but one thing you can look at and the data you can always point to is not only the invention and creation and the flourishing of bitcoin for example from 2008 since the financial crisis but also the accumulation of gold and how people are nations in particular are turning to gold the global collapse and trust has driven a secret bull market in gold and this is a tweet from Dominic Frisby and hes the links to his article that he wrote in money week and he looks at a new paper 300 page and or report that comes out of lichtenstein. Called from incremental which is a lichtenstein based Investment Company and they put out a report called in gold we trust and they have a lot of Interesting Data were actually going to talk to one of the guys from there soon but incremental observes that in the west trust is disappearing people no longer trust their governments they do not trust their politicians they do not trust their scientist or there are economists experts are biased the media is biased even systems and processes are no longer trusted whether its education. Health care even democracy itself right larc the lack of trust trust is trading at an all time low trust is crashing on the Global Markets so when that happens people buy gold and nations buy gold countries buy gold Central Banks buy gold theyre buying gold arrived in gold its making new all time highs australian dollars spent almost dies on russian rubles almost dies in Canadian Dollars almost aizen neros so all over the world its creeping higher because of the trust being eroded as we get from currency war a trade war and then a somewhat positive we get into more of a hostile situation you also see that those who sit atop the institutions in which we no longer have trust where there is the large banks or the large Education Systems or the large corporations or indeed the media you know that those who are the talking heads when we begin to lose trust in those institutions they have to either respond with being more trustworthy or they start to attack they start to do things like lets take down you tube there it cant be because of me and my opinion being spouted every night on cable news it has to be because theyre going you know that theyre looking at the consequences of the absence of trust people turning to other sources of news. As the cause of the lack of trust rather than that they were the ones that started giving them false information like the false information of w m ds in iraq or the false information that everythings going to be ok with the economy and Lloyd Blankfein and jamie dimon deserve the trillions and bailouts so that was what caused the absence of trust and they have a chart here which is really quite fascinating looking at trust in governments and the percent change since 2007 so right before the financial crisis the blue little diamonds there are what you really want to look at and thats the decline and trust anything below that center line is like theyve had a complete collapse and trust in their governments finland has been the biggest collapse in the trust in the government over here is like theyve actually increased their trust in their government sense and thats in israel Russia Germany switzerland all the places with some hard currency hard money are have seen an increase in the trust as this pyramid scheme around the world series to disintegrate well another thing thats crashing is humility. And something also skyrocketing in value is bennett. And so homo sapiens as a species are becoming into a very vain shallow creature that can withstand any criticism whatsoever and anyone who sees anything online remarking in any way thats critical of them their 1st reaction is as a tyrant to banish all discussion that is the response of a narcissist of a tyrant of an ego maniacal cycle and that characterizes not only our leaders but also the average person on social media we as a species are quickly devolving into groups and to grow well of course its also fear fear. Whats coming next. And in terms of trust i want to say you know the absence of trust when the complete loss of trust is what in monetary terms will cause hyper inflation because inflation or deflation are caused by you know the collapse or rise and they mount of money printed on the amount of money in circulation at the mount of money being created but hyperinflation is caused when theres just total lack of trust anymore and the ability of the government or central bank or the makers to control the value of their their imaginary money at the exactly right so paper money never survives on none of them have ever survived 300 years theyve never had paper money survive. The british pound has been around for a long time but its lost 99. 5 percent of its purchasing power so effectively it also this debt and the gold has been around for a while because the new kid on the block thats what the millennial zx are into because its native to their digital experience and so those who arent going to have the gold or the big going will make the rules you know the banks when they go bust this time as jamieson lump said were waiting for the point where the banks dont go to the Central Banks for a bailout theyll come to the big going to mean are you for a bailout because the Big Community will hope will have the only available funds to bail out the Banking System also like at these sort of periods in history it is like a turning point and you do see a lot of the elite turn to sort of which hans or you know inquisitions or very like they react the overreact and very emotional very aggressive very conspiratorial very conspiracy minded ways throughout history so it is something you say and all the conspiracy minded sort of information you see coming out of our you know our trusted institutions in the media you know now google will say for example on you tube that. That you know m s n b c is to be trusted and thats why they push theyre trying to push now more of that onto the audience rather than you know the ones that they actually legitimately believe are more real but as far as incremental men any like minded gold or bitcoin bug is concerned this loss of trust in our institutions and in each other is leading up to the humdinger a loss of trust in money itself indeed thats why big point was designed in the 1st place at a global level this is manifesting itself in mutual distrust among Central Banks some have repatriated gold held overseas while others have been increasing their Gold Holdings and what is known as the dollar is ation of the economy hungary has increased its Gold Holdings 10 fold for example thats extreme but most nations are at it and heres a chart of the trend in Global Reserves since the financial crisis right there its gone up and of course at the same time has also gone up no matter what sort of parading of the the deplorable people that make up the society around you at the bottom 99 percent theyre the deplorable those were told by the elite and they saw what you did they recognize what happened in 2007 to 2009 and they know and they understand and you could try to propagandize them all you want about how it was all for their own good and whatever but the data show that they understand exactly what happened re talking about now people questioning what is money and of course you could throw into the question what is so for alliance and what is the point of labor so was it so long ago or people didnt think so much about money as i thought about their value a society in what they could contribute. With their labor or if theyre artisans of some time they knew that they could always get a job if they were great at you know the social skill woodworking or cabinet making or ironing you know they could always get a job and money was something that well you know its nice to pay the bills but my value is what i am an old idea of. 10 or 15 years thats now disappeared completely people have no Self Reliance and no self worth is only about are of who can game the system become a Global Economy of gaming Digital Gaming and as our friend brought pearson the crypto space says life is becoming a game were a youre constantly earning power ups and youre getting bonus points right thats your just game youre playing a game all day long and thats what thats pretty much were the economy is at the moment yes but as the power center of the world the empire disintegrates and trust disintegrates this is also why i think since that period of time 2007 to 2009 you see the emergence of a hysteria around identity because people do not understand what their identity is within this new disintegrating system there it is fear people are afraid to that they might not actually understand who they are within the Global Economy and the global the new the new paradigm that might be emerging who knows whats happening nobody knows whats happening nobody can predict the future but we can see the past in the past is that you know our governments work for a very small set of people so who are we where part of this society or part of this economy who are we if were if were not part of it right even a skill like Truck Driving which is that its a skill of driving 18 wheeler i mean you tried i tried as hard to do you know got to actually know stuff and but thats all disappearing down thats almost a 3rd im sorry 20 percent of the economy in the United States is Truck Driving a Truck Driving related and now thats all. Being automated away so now its another you know millions tens of millions of americans i will be lost in the existential desert not knowing what their value is what theyre worth isnt being asked to play video games to survive along with everyone else wall street is a video game the Federal Reserve is a video game. All corporations they make most of their profits trading on their cash desk the proprietary trading desk thats a video game so if youre supposedly making food or a beverage or manufacturing or you make caterpillar tractors most of the profits come from your cash desk playing video games so video games are really the only game in town and as you said you know you try to earn power ups youre trying to work your way into the center of the game and become super powerful imprint the game pieces us a lot of in crypto space with these new tokens is about being the king of the coin and being issuing the king coin at the middle of the coin game and speaking of you know the tokens the accumulation here is russias reserves you know kind of accumulating every year up until 20072008 financial crisis and sword they put together a chart of imagining what china is they only officially announced some of it and its looking very parabolic as well also since 2007200820 extension 09 again those who are behind you know basically writing the algorithms that are the game that is the Financial System around the world in the Monetary System those who are coders of this game if theyre buying gold and theyre buying hard assets and they see that their players are losing faith and the quality of this game. You know it could be time to basically buy some gold and buy some big court would like to see block one take some of the 4000000000. 00 they raised and put 2 or 3 or 4000000000. 00 of it into gold that would make sense i wouldnt be surprised if they turn for the 2nd half a lot more coming your way. In a world in which there are the americans that the chinese the indians the russians etc europeans can only really be a player at that global top table by standing united and we are already united on the economic front and we increasingly understand that we have to do so also on the defense front. So what weve got to do is identify the threats that we have its crazy confrontation let it be an arms race. Spearing Dramatic Development is only going to exist i dont see how that strategy will be successful very critical time to sit down and talk. Welcome back to the kaiser report imax keyser time now to turn to michael pant port dot com michael welcome thanks so much for having me back on x. All right michael markets are expecting up to 3 to 4 rate cuts by december your thoughts. Well my main issue will want is it wasnt it just a few months ago that were talking about 3 or 4 rate hikes isnt it amazing that people still have confidence in our central bank that they have any earthly idea what is going on in the economy how did it possible be that we go from if that funds rate there supposedly expose a rise of 3 and a hair percent to now saying that weve made a clear cut rates and also the Balance Sheet which is very very important which was a monetization of 3. 00 trillion dollars worth of counterfeiting contain were supposed to go back down from there near chile and down closer to 2 trillion is now going to be permanent only not its not and stuck around really and pay out surely in dollars of based on the supply so i dont know why anybody has any credibility your feet or hole in the Federal Reserve knowing whats going on with the economy and say what does know its going to be economy is the yield curve and its done the hill curve is inverted massively so you have fed funds rate effective fed funds rate trading at about 2. 39 percent and its end here no trillion 2. 15 percent so in the shadow Banking System which borrows money from the primary dealers and bodies in the 0 reserves and were just back securities and all these instruments that are processed in securitized by the Banking System all those things are now all those mortgages are squeezed to 0. And below so the money supply is shrinking if youll care is inverted and were headed towards unfortunately a recession but i only say 1. 00 thing. We dont want in probably many things in this interview but what the hell is wrong with it a recession really where did Central Banks. The notion that they were on gods green earth jim is sure that the market started there never has a down tick and now all recessions are one when did it happen right well i mean lets take a look at us the old car for a 2nd so short rates are higher than long rates and. You know tell me what it says is that banks dont trust each other because the banks know that theyre insolvent the Federal Reserve is flooding the system with cash to avoid a credit for it and they will be unsuccessful the short rates are telling us that the banks are in fall vant my call and that part of the crisis from 2008 is about to hit ok so lets see back in 2007 i havent dared wait for this and this is absolutely factual so back in 2007 the amount of so run and mortgage debt was 1. 00 trillion dollars out of a coolant 10 trillion dollars worth of u. S. Mortgages and want to ben bernanke he say about sub prime mortgages back then did he tell you watch out be worried be very afraid because banks owns you was at risk he said that the subprime mortgage crisis if there was a crisis was negligible and we have nothing to fear but ill tell you one data point. There are. 4000000. 00 worth of corporate debt that is rated triple b. Which is just one notch above junk and below so here is the amount of the original homes which are worse than high yield bonds with no come up and then you have jumped at and then you have sure will be fun point 4 trillion dollars max and when the credit markets rowe has in late november and december of 2018 and no issuance was made in the high heel northcott inch one to 5 percent of the russell 2000 companies are deemed to be Zombie Companies meaning they have to issue new to play interest on existing debt and the credit markets froze we were headed into 5. 00 trillion dollars worth of defaults or some vast majority of those defaults in the high heel leverage loan interval be space and could mean we were headed for a much worse crisis then 2008 if they understood this they cant use it if any Christmas Eve or around that time and thats why now weve gone from a less high grades so its really impressive the fed 1st rate illustrating the belge because this was a one time Emergency Operation which will never again happen in our lifetime. The words coming out of your own how is that you know we noticed not using words like. Up unusual events or exogamous events or tipperary events even basically admit. That such measures taking Interest Rates to 0 percent and here we end universal basic income. And all these extreme measures new winning streak an extreme emergency measures from the Federal Reserve are going to be regular practices from our central bank and even those from around the world yeah ok lets look at a tweet that you recently posted quote when the total value of equity it was roughly half of g. D. P. A like a was from the mid 1970 s. Through the mid 1990 s. The economy was able to lead the stock market but when money printing pushes stocks to become 1. 5 times the value of the economy it is stocks that leave the jaideep a labyrinth on this a little bit the difference between having having an economy. Of a stock i have a michael american selfexplanatory or 97 the stock market drop by 23 percent in one day in one day and if youre months later it was all over with read a recession in 1987 because then it was the value of equities the financial ringback world was a very small part of the overall economy riyad you know a little bit more of a manufacturing economy back then we had an economy that existed outside of wall street back there and you could have a crash krish theres a way were almost one quarter of the value of the undervalued starts was waved out in 1. 00 a day and you know it wasnt there so its better wall street but you know what the guy in main street ok well when you know what the ballyhoo records to equal one and a half times the total underlying income of the nation which by the way is funny because most of the income and activity in consumption of u. S. G. D. P. Is a derivative of 0 free money were basically free money then you have a huge problem on your hands then that is why. Donald trump and Jerome Powell are my only focus on every dollar until going to start a market because if you let. Me sell in style events or even when there was a slightly more protracted lets just say the market lost 30 percent of its value the market is the economy it is leading the United States economy at this juncture because it is such a huge part of it wall street has usurped main street. Got of interest thing that and the bank of japan now on equity no assets on their books that are greater than their entire g. D. P. A country of japan. Thats where this is adding doubt fair point is that there is no underlying economy there is only money printing and the speculation now since 2008 the financial crisis the labor share of the economy has continued to shrink significantly while Capital Shares increased with quantitative easing i think it matters that consumers are earning an ever smaller share michael of course thats where the mill the middle class the road to perdition for the middle class is very small and very well you know i heard steve moore today max on c n b sheet and student moore was actually hes one of your guy who knows what hes talking about he was interval part of trumps. Tax cut package and he was the n. B. C. Telling viewers the families are should be lowering rates by even more than 25. 00 basis points maybe even a 100 basis points one percent right away and mr ryan actually now who wasnt the economy said for recession is rationale wasnt that the yield curve is inverted and money supply is getting sucked out of the Banking System and in us consumers about affordability his rationale is rationale was there we are missing and. Asinine inane inflation target of 2 percent not by a lot by 50 basis points so the middle class is now characters even a 101. 00 of my heroes at one time was steve moore and this individual was it not for that as a member of the effort i went see their open Market Committee for the Federal Reserve is there now saying that shell money a strong dollar and stable prices is now somehow equivalent you dont insure yourself inflation target. Measures it was your score p. C. T. Inflation but minutes if the fed was kind of cutting rates at this juncture when the stock market is one here times underlying g. D. P. And the middle class is disappearing what would happen in many case would not. Exacerbate the difference between the very rich and the worker to even greater extent right you are not only you seem to be worried about that now well let me ask you something so lets say or the same of a fortune 500 corporation and youve got 2 choices their 1st choice you are going to go hire a lot of people and are going to populate some factories that are going to manufacture stuff and are going to sell it hopefully at a profit or youre going to take that money the feds printing at 0 percent Interest Rate buy back your own stock and boost the price of a stock and players options and billions of dollars of the bonuses with which which choice would you take well also if i could borrow money at a lower rate than my dividend is banker and it really pays off to shrink the share count everything is this world of order racial Interest Rates is worrying and distorting a hold. Letter up of themes around the world its not just the United States its to pay and its europe its china its even though you were there back with these issues well grace is now tornado bubble and of course its the fixed income mortgage mess a letter in trillion dollars worth of sovereign debt around the world. Is and has a negative sign in front of it in other words sentiment governments are getting the job borrow money and nobody seems our problem the guy were going to cause theyre going to take it up and segment turner thanks for being on this part of the cause a report thank you max lets go there for this edition of the kaiser report with me max kaiser and Stacy Herbert i want to thank our guest Michael Plante off the top or dot com if you want to catch us on twitter its kaiser report its all next time. So you say that preexists the end of the series if we could just let josie marino walk away so we decided to treat those to a very special Farewell Party by going to. Interesting parts of the dream but this time to go back to the punch line and thanks for putting on such a good body. With. The only thing that i didnt enjoy was my dancing on ice in moscow my dancing. On ice. Thankfully we nailed it literally. What politicians do. They put themselves on the line they get accepted or rejected. So when you want to be president. I want. You to go right to the press was like a Beautiful Tree in the morning cant be good. Im interested always in the waters about how. This should. Not just about a fluke of much stuff you know stick even to the pee havent you told us the school the children could have been trying to go for the matching emotion that. Pictured you this post for about the cost of course you know you. Think it means not a. Joke to me. I will pursue some commotion but for you. And i will tell some of the commissioners from bush the great and i thank him and thought it was. Because she was honest and. Well thats. Just it was also of course others