For the latest on these stories going to stay with us now though for the kaiser report altering about food banks in australia and if youre watching in the u. K. Boom bust as the financial news. I am asked as are this is the kaiser report where in paris you know so many people referenced the Mary Antoinette quote let them eat cake and then you know historians have gone back and they said you know its actually my cake its brioche brioche you know that so i brought in actual poem my god what a mess we brought in actual brioche this is a brioche is for the sliced there at the patisserie and so this is what she suggested that the peasants this should be eating because they had run out of pan you say this is a brioche is a slice of the nicer version of pan theres a few in a cupboard lets throw that to the peasants and maybe thatll shut them up but. I believe there had been a wheat disaster because of the. Volcano in in iceland had blown and caused bad weather yeah that we learned about that in iceland and thats what they claim they like to claim responsibility for the way we are in the morning once again and then she lazio is barricading at the gates once again and the folks are rising up for a good reason what have you got in your little notes there because we havent actually evolved since then because remember during the french revolution you made a film about this with gold money dot com and about john law and the acid not because acid not was basically a fiats currency here in france that was backed by all the property that they had seized from the Catholic Church is a derivative it was a derivative and nowadays i realised it dawned on me with all these negative Interest Rates all of these crazy economic policies emanating from our governments but at particular from the Central Banks is because we actually do have globally and afaik not because. Most people think that banks lend to businesses and thats what theyre doing and everybodys looking at the e. C. B. To cut rates at that they can lend to businesses and grow the economy but actually over 85 percent of all bank lending is for properties and property bubbles so were stuck with that right i mean thats a transfer payment and they use derivatives these modern channels of banking and conduits to collateralize the property in the modern cars the french government the time simply seized it via the Catholic Church their property securitized it and sold their currency back as such but here in the 21000 era they did they do it using reverse collateralized morgans obligations and fancy wall street products but as you point out so so well there this is a replay of all the elements that led to the french revolution using Financial Engineering and securitization and the riveted to debase the currency and the currency is being debased well you reach an end point of how much the value of the property can go up and with the asset not the french people demanded they print more of these awesome knots so that the property prices can continue to rise because they didnt want them to go down so we have that Global Situation right now it did it was able and possible because we went off the Gold Standard in 1071. 00 at the same time it wouldnt have worked without the fact that the boomers hit the right age they were entering the workforce at that time and that was a massive population so you could create a ponzi sort of scheme heres a headline to prove my theory that what were seeing right now is a kid in to back at the assoc not in the collapse of the asset not in the strife that followed the reign of terror that happened here in france banks are now referring people to for. Bank to help them pay their mortgage this is in australia so its called food bank South Australia has been approached by banks tree for their clients to the charity in the hope that it will prevent people from defaulting on mortgage payments not let them eat oreos but let them eat food bank this is a real up to me moment and another replay so its got a couple of almost verbatim replays of the revolutionary times of france so not only are they collateralize ing property as you point out its no fat is nothing reinvented here its all property backed and now instead of letting them eat slices of brioche theyre allowing the folks to use their foods to know theyre subsidizing the food banks they are bank will food so they dont default on their mortgages these are normal middle class upper middle class and even indeed upper class people but theyre stretched they have 10 x. That they might be earning a 1000000 or so their dollars a sisterhood bank to get shoe them food coupons so they dont default on their mortgage theyre calling it vouchers these banks the bank you have a mortgage with the bank the bank is concerned that you are not able to meet that mortgage because your income has not gone up and the prices continue to rise so theyre creating vouchers that they give to the. Virtual reaction virtual brioche token as it were a lot of child care and i see oh yes of brioche yes on the theory in block change its an e r c 20 token and theyre throwing in a few we found a use case for a ferry and finally say its halleck ticket be happy and so here again we had. 10 years 20 years and australia to feed this property bubble there to keep that going because if youre not working in the commodities business in australia then youre in your property speculator and you have the asset now so here is that unusual situation food bank South Australia chief executive Greg Pattinson told a. B. C. Radio adelaide it was still exploring how the program would work quote thats what were exploring with some of the banks for the moment it hasnt started yet because we are still working through the process weve never been approached by Financial Institutions in the past and the banks to their credit are doing the right thing in trying to find a way of keeping people in their houses now in the Medieval Times you have the church and they have a lot of property and here you have the church of Central Banks and theyre treated as saints an apostle they definitely are infallible banks have been determined and deemed to be infallible they are not punished by anything there is no mortal that can ever punish them because they say this with knights and our whole fabric of society and the system around us would collapse should we question today go to a bigger fell yes like god gods too big to fail so in the sector but this is what they said at the time pre french revolution that they were infallible these corrupt. Priests that were wandering around europe at that time you know they were shaking down people for indulgences and nevertheless here we have another let them eat brioche moment and i want to turn to another part of this this trying to sustain this acid not system that we have around the world and you had predicted here in christ report that cutting Interest Rates down to 0 and then to negative that it would cause deflation and heres a headline from bloomberg Central Banks negative Interest Rates were supposed to increase spending stop deflation and stimulate the economy. They may have done the exact opposite so this is based on a study from the university of bath in england and you had to wait 10 years after kaiser report told you this would happen and here theyre saying yes they dont credit us but we were right right patrick then and Danny Blanchflower another economist and former central bankers argued that this type of money printing would create inflation however what it did was it kept a zombie banks alive and they pushed out companies that could create actual jobs and innovation and genuine taxable inflation Economic Activity and by catering to the zombies of the zombies got bigger and bigger and as such became a black hole of debt so the black hole of debt the cheap rates of negative rates are increasing that black hole of debt in thats deflation and now negative Interest Rates are soft default on sovereign debt thats also the place but again go back to my theory that this is an asset not they were never ever going to lend to businesses businesses dont exist in this world where financial world what they ran out of was greater fools back in the 1980s when we began this bond market bubble when Interest Rates were at 20 percent and now theyre down to 0 and even negative what we had always was a greater fool to roll over your debt who could back in the eightys you had to have you know take out a mortgage to 2 and a half times your income you had to put 20 percent down then they cut the that down to 3 percent down then to 0 percent down and even they would pay you to take a mortgage they would give you the deposit essential and they would loan you the deposit and add it to the mortgage so you came up with that then you could always roll it over and well because Interest Rates are lower now than they were in the eightys you could act you dont need to just borrow 2 and a half times your income you could do 5 times and then 7 and then in Central London is 12 times. Your income so theres always been a fool willing to say ok ill take out 12 times my income what could go wrong because i know in a few years time maybe somebody will do it for 15 times but that fool never came along to your point so the lending is spent to property and Property Assets are collateral izing ever greater lending into ever grading misallocated resources into inflated property bubbles yes this is iceland you know iceland the banks lent to the property markets they used the collateral to create this enormous bubble and then a pop in the entire country went bust this is being done on a global scale what we saw in 2008 the world came to a crashing stop iceland went under ireland was faced with near extinction there was this huge multi 100 trillion dollar bailout and now were at the end game about where the Property Values that were inflated to these incredible values where youve got the Citadel Hedge Fund ken griffith buying a flat in new york for 280000000. 00 right so you know if a little short here is the titanic is the World Economy is the titanic in 2008 it hit the iceberg. And started the saying and heres can grip it with us 280000000. 00 it goes up in value. Ok what has perpendicularly thats for now when we reach to a shortage of fools thats whats missing in the world we need to grow more fools and in fact in the United Kingdom when you know theres a help to buy scheme and remember George Osborne introduced that in the u. K. His mom loves the program and the fools that bought that are using it love the program but other people like kaiser report might suggest it was a ponzi scheme we have the us like not and what are they doing with the help to buy scheme 6 years after we called it a ponzi scheme but the fact is the government is having to say well now you can take out a 35 year mortgage because member thats how we had greater fools you had less deposit down you extended the mortgage 3 times and you lowered Interest Rates so now our app and game we know what happened in france may be this could well if you look around the world you see the unrest that its the beginning of that sort of thing when the assoc now falls apart right instead of having one revolution in france or in the Russian Revolution of the american aleutian him a global insurrection against banker occupation. Right and theyre all one joining up forces the g. L. A. Shah will join forces with the folks in hong kong when horses and arab nations and its all the us and not essentially that what they are is going to see you know us and you know currency titanics last nightmare so we have a lot of the 2nd half remember. Dinners things. Welcome back to the kaiser report im max kaiser time out of turn to mark the lack who publishes the annual in gold we trust report were going to get into this massive tome quickly marc walk im grateful to have you on now youre from lichtenstein 1st of all i like the way you say like the time how do you say it listen the. Affair like im in a crazy movie something well we are in paris you are from vienna so youre austrian. In more ways than one many of our guests here on kaiser reporting who watch the show call themselves a part of the Austrian School of economics are you an Austrian School of economics person or what does it mean to you well i would say so i mean its quite important for our develop and it has been very deport important the Austrian School of economics i think helps to really see that there is in the term the 2 for way to view the Monetary System so its not only central banking it doesnt have to be central banking necessarily but like mainstream economics just takes that as a given and i think thats perhaps one of the biggest atlanta just if one studies there was just cool of economics just that one really realizes a this can be another way and the central bank can may not be the holy grail for a day or big fan also of the big standard that book saved in a most i am yes and he goes into detail into his view of the Austrian School of economics and hes a real he really hates keynesians and and their idea of printing money ad infinitum into that point there are over 17 trillion in negative yielding bonds in europe in what school of economics is this or do negative yields defy the laws of time and space and finance and other words. This is definitely an Austrian School definitely not i think its basically a function of that based momentary system which we have which basically. Brings us to a point where we have an ever expanding amount of that and then we need to central bankers to kind of try to inflate the way out of this and we lend that at the point where were pretty much at the end of the road in terms of. Youths into the terms of Interest Rates and we really need to know that the central bankers have to really try to reflate the the system in a new kind of way and theres all kind of interesting debates going. Currently which is quite interesting to follow i think we are at the verge of the new period to go with this reflation will really hit the new. To a very low start of others a little bit of face so inflating out of debt so money is constantly created to pay down the debt that youre creating and you create more money to pay down more dad and theres this vicious cycle and if you know it we know because they cant tell a fact if youre a friend of the banker and youre the 1st in line to get that fresh money you can make a lot of money in buying assets you know you can buy a chalet lichtenstein you can buy fine art but if you are not part of that group by the time the money gets down to you youre paying more for groceries youre paying more for gasoline so you experience that Price Inflation and it creates us an enormous gap between the haves and the have yachts and the have nots and stuff but this negative rate seems like more of a defaults and outright default on a bond then an attempt to inflate ones way out of debt i see you nodding your head what do you think i think one can make the argument that its kind of a. Soft the fold them in you you get to you know no in cents on the dole a bake will even less if if you have a negative one percent uks so thats basically the a partial default sure but i think the main busy intention is really to push this car and see ol for sit out and really i mean in switzerland and and least its done a where we we have to the swiss ruck we have pretty negative Interest Rates already and this is a huge huge problem or obviously fullest that miniatures for for all these pools of funds the really need to do something with with with this its or obviously they missed sit in equities bones more less unless in though to un a tiff corporate bones listen listen though to on a thief and once this kind of hits the u. S. Dollar i think really that the cirie the an interesting environment for for gold and beat quinn you know its almost like statutory a financial all prime being foisted upon lets a Pension Fund Managers who are obligated by law its of by Government Debt if that government dead as a negative yielding debt its a negative Interest Rate that they have a choice they have to buy that debt even though means that their bankrupting all these pensions and so where do they get away with this because this social contracts you know where or in europe right now we are in paris where are in home of relayed the whole idea of the social contract and the idea of the enlightenment and if the social contract as broken according to john locke the people all must revolved you known are seeing that we see theres year lays own we see a in hong kong we seen occupy wall street weve seen thats all over the world what we call the global insurrection against bank her occupation would you it would you put it in those terms i get the asked this question because we arent europe its a bit of a high falutin question but however is it a break in the actual social contract that is girding society together i think so i mean the quite a few indications that this kind of social contract in germany its called to get other to once fair to the uk which is also quite interesting work is somewhat breaking down and people are also losing tons of the trust in this social contract i think one of these indications also would be like dropping birth rates so people really have to take care of themselves if theyre one to live the kind of life with which they were used to growing up and they really dont know how to manage that was like 2 or 3 kids even less where youve got birth rates was scratching at one actually in germany and even in countries like like france and spain which traditionally had. Higher birth rates than these birth rates have been shining during the last 10 years especially so so thats one of these indications in other indication i think is the whole crypto phenomena which is obviously embraced by the Younger Generation more and they think perhaps ok who knows if really this whole field system collapses down the road when i when im at my pension age i may be able to save myself from economic point of view if i have a few bitcoins right so thats also i think a part of this mistrust in the social contract right well lets turn to this mass of report have seen a lot of reports on monday but ive never seen a report like this its huge and been through it and every single page has some good stuff in it incrementally as the company anyway if you get this but as a p. D. F. Yes it or they can contact i guess the name of the report is gold in the age of a roading trust the very thing were talking about dollars now on the upswing all of the institutions the family as you just mentioned banks things that are. The social contract these are all dissolved in real time and this is now reflected in the price of gold you publish just in may in just 2 weeks ago mark carney confirmed this trust has gone globalisation is over what next for what people are familiar with and that is fear out money fiats currency like the dollar the euro i think one has to differentiate very much with one lives so which kind of culture one has in terms of currencies we say we in Central Europe for instance in switzerland again and austria germany we were brought up with a relatively stable money and relatively stable purchasing power which is declining no not perhaps in terms of consumer Price Inflation but in terms of purchasing power of real estate so people now starting to question a little bit. The system also from from the field money side if you are on the other side living in south america or living in the middle east i think youve got a completely different. View of money you already were much more skeptics and so the eroding trust which we this report also mainly refers to i say western societies which still had generally the feeling that this is a stable system but this is i think now also on this way down lets talk about the e. C. B. The airplane central bank its really mostly the old. Bank right and it became the central bank its german germans the biggest economy in europe and its basically just the germany is running the show and yet member a few years ago when people were aghast at the Balance Sheet expansion of the fed and they were saying well this all never had the easy pay the. Hermanson germans would never allow this type of monetary maddest and yet they certainly want to have did that and now the results are pretty obvious i mean i would think the german people. Are starting to get a bit nervous if not quite upset about the germans definitely a nation of savers i mean also that is declining a little bit busy but still it is is more in the genes than in other countries and savers in terms of saving in the bank account and not investing so so they really get a problem if they have negative Interest Rates so they were kind of ok with Interest Rates which theyve been living with for quite a few years actually so thats in real terms negative Interest Rates anyway but if you want to see a phenomenally negative Interest Rates then then people really think. Im not happy. So that would really be i think the point when when when a broader potentially a broader wave of unhappiness regarding the c. P. Will rise the key word in all this course is trusts trust is the key word and you know in crypto and big coing trust is a big word because its trust. Trust isnt needed the transactions are solved verifying you dont need a 3rd party to apply that stamp of approval and in this in this report gold in the age eroding trust you put in right up there with gold its especially gold and because in our together in your view of how to play this collapsing a world of collapsing trust. Yes i think its important to to not neglect generally the Technological Progress which is going on on the cryptocurrency side generally which is obviously also being followed. And try to being taken advantage of from Central Banks so so so its just important if you really want to see the whole picture too to follow whats going on but when it comes to bitcoin. I mean this discussion is always interesting one of the plan to just bitcoin versus gold gold is. Obviously a physically metal its an internal metal its just never dying and bitcoin is a man made system so so that would be one fundamental difference but then again from from a from a term of money bitcoin one can make the argument is even harder money than gold in the medium term so so it would be really an interesting measure of value so i think one needs to follow it closely right were in an interesting camp of being both gold and pickle and were going to talk about that some more in another segment if you can hang on but thanks for being on this episode the kaiser report thank you well thats going to do it for this episode of the kaiser for with me max kaiser and Stacy Herbert like to thank our guest mark of alec incremental this is the thing youve got to get the p. D. F. And stray in lets get in touch with us as kaiser report on twitter or matt has a report dot com and i stand by. Lead. Player. Lead. Oh. Please. Play. Lists lists lists. List. Playing. Very well now continue watching on since last. Water bottle found in the stomach of a fish. Of the Cocacola Company which sells millions of bottles of soda every day the idea was that. Litterbugs. Industry should for all the company has to reuse the plastic. Only grow