On those stories over on our website we will be back with full roundup of the latest world news in about an hours time right now though it is time for max and stacy with kaiser report. I am i skies are this is the kaiser report our markets are make a new all time highs interesting the money that is being forced into the. Markets like grain into the liver of a duck off farm it has to come from somewhere a lot less lets dig into the us a little bit more stacey yes as we always say the fed is feeding the ducks on their for farm over and over again but of course were in new york and one of the good things about being in new york as we always tell the audience we get to watch the cable news we get to watch our socalled competitors and there is no worry here you know i had id id actually rather have our competitors be better because it encourages us to be better but nevertheless also when were in hotels we get to see the Financial Times and you see all that the cable news except for kaiser report is covering and its really important head of the Financial Times private equity firm k. K. Are lines up 70000000000 dollar buyout of walgreens boots walgreens boots obviously are a consolidation of a Pharmaceutical Company this little sad emotional there is probably a good. Explanation of this whole story so theyre taking it private biggest deal in history all your obamacare money well now belong to you who is that Stephen Schwarzman no no he said blackstone k k r painted travis exactly ok our writes this plays into the steam of neo feudalism everything being taken private so what is i mean that means for example walgreens boats already merger as you discussed theres fewer and fewer competing Companies Competing with each other theyre all being consolidated to an oligarch played them in a monopoly and then they are taken private so. A 1000000000. 00 deal largest private equity deal ever and those deals are going to need to become bigger and bigger will say 150000000000 dollars 300000000000 dollars im sure Warren Buffett also Berkshire Hathaway in a 600000000000. 00 deal with some saudi prince at some point but its all being taken private and thats just another stepping stone along the way of that trend weve been talking about here for a few years and if theyre spending 70000000000. 00 and its not their money theyre borrowing that 70000000000. 00 or 7070000000000. 00 against the assets of walgreens boots i. E. The Pension Funds of all the employees the buildings in which walgreens lives theyll just sell 3 it all off pay themselves a huge dividend leave the 70000000000. 00 of debt with the public shareholders when theyve bring it back to the market and dump it on our pension photo leverage buyout just to be clear youre pledging the assets of the company to borrow the 70000000000. 00 in this case from the central bank that will charge you nothing for it then you make the acquisition and then you make a few spin offs like the pension accounts to pay back that debt and you keep the keep the rest i mean thats what ray dal you know is essentially talking about when he says billionaires like himself or henry kravis or steph Stephen Schwarzman they get to borrow for free at the fad and then destroy the livelihoods of the bottom 50 to 90 percent of the population sells 500000000. 00 in stock i dont know how to pronounce his name kalanick hes the guy who was ousted he gets 500000000. 00 and by the way his new his replacements of course praising. M. B. A. s you know mohammed bin solomon from saudi arabia essentially he was saying well we all make mistakes about him chopping up a journalist. Of course transforming the taxi business around the world and becoming a monopoly in the taxi business and one of the founders there for half a 1000000000 who was caught doing a lot of nasty things and his successor praising the decapitating m. B. s. Over the in the study yeah yeah he said because we all make mistakes like having cars have run out repeatable he equated it with that heres for the bottom 99 percent this is our life Health Websites share personal medical data with advertisers so again youre being plundered picked apart is like private equity there plundering your soul your your pension your wealth your dignity this is a case for universal basic income because data is the new oil that supplies the lubricant for the new economy and to have my data stolen from me all the time without compensating me for that data is set well is beyond me and that i dont i wouldnt sell mine for a 1000000. 00 i had i you know and they would only want to give me you know a 100. 00 but the fact is there is a thing called dignity and one needs dignity before one can be a human so were either docs on that while gras farm that you started off the top or youre the person sticking the you know the gunk down always have the option you know i have the option and maintain my dignity or i have the out of the cell my dignity you know but at least give me the option just dont steal my dignity of course if somebody walked into some individual off the street walked into your Doctors Office after you had just been in there and said hey can you give me maximizers data that you just talked about there like that it would be an arrest right that your doctor would be arrested thats its all that stuff there is a patient confidentiality on line somehow its all methods cool you call yourself an internet or Software Provider and suddenly there are no rules that apply do well multiple personality disorder can be profitable because you can self they can be in your multiple personalities thats a good idea of course europe has a different sort of sense of dignity it is where our farms are but for the human europe must rest control of data from Silicon Valley warns Angela Merkel of course they have the rest in control and this is an issue between trump and merkel. He says you know that theyre unfairly targeting Silicon Valley companies and that we have to stop this its all so that adds to be delivered the moment you have the idea of buying something with the credit card that you can afford so that you can have a way to relieve the pain of having an existential crisis of your dignity money without any compensation speaking of pain that segues brilliantly and to my next headline negative yield in bonds turned into punishment bonds remember all those negative yielding bonds weve been talking about well theres been a bloodbath there hasnt covered much in the news except for of course the Financial Press but after peak negative yield absurdity in august bond prices fell the bond of blood bath and the mountain of bonds with negative deals has plunged by 5 trillion dollars or by 30 percent despite negative rates so in the euro zone where the e. C. B. In september cut its deposit rate deeper into the negative long term wheels have risen across the board so member all those people buying 30 year bonds. Switzerland was the 1st to go negative in europe well theyre less negative now so in europe in switzerland it was negative 1 point one percent now its soared by 70 basis points to negative point 4 percent which explains how much her that would be to get back to my comment at the top of the show the all time highs the stock market that cash has to come from somewhere so most of it comes from the money printing going on the central bank but the central bank cant print fast enough to keep dissipating new all time highs so the Market Makers who are driving those prices need to steal it from somewhere else one big place they steal from is the bond market and from the pension market they are forced to buy negative yielding bonds where they are guaranteed losses so that that extra cash that is being offered off the top can go into the Market Making to get those stocks at all time highs and of course those bonds with a negative feel to begin with once they have any kind of down. As volatility comes into the mix and you have comps and downs in the bonds are now down so youve got a loss on top of a guaranteed negative b. Ill and the results are a complete and utter wipeout but those losses are needed those sacrifices by pension accounts that only snag the Building Bonds are needed so all os new highs are the result of those pension councils bondholders dying on the field of negative rates according to wall street so work lets look deeper at this in particular this with swiss situation and what happened to those investors who we were mocking at the time saying this is going to be horrible for them but in switzerland the 1st country to actually sell new 10 year bonds with a negative yield in april of 2015 the 10 year yield had bottomed out at negative 1 point one percent on august 16th and has since soared 70 basis points to negative 0. 4 percent those are true punishment bonds for folks who bought them in mid august for those buyers the annual yields will continue to be negative 1 point one percent until they can get rid of those bonds but now the bonds are also losing value and if those august buyers want to sell the bonds they will also have a capital loss yeah exactly its a lose lose equals a big loss and this was also Insider Trading racket because a negative yielding bond by definition will without doubt be a loser so you can again borrow tons of money from the 0 percent Interest Rate window at the Federal Reserve and short those bonds remember as those bonds go down like we saw on greece there were over a trillion dollars those were made by racketeers who were making bets on the collapse of greece while they were you know arsonist tickly destroying greece and heres another example of that another pain punishment sort of movement here ok boomer stop buying stocks that ality warns Fidelity Investments in its 3rd quarter. Tyrant report has a new warning for its greedy baby boomer clients Portfolio Risk has never been higher as retirees are overly exposed to equities running a serious risk that the next market meltdown could wipe out their retirement accounts their report notes that more than 33 percent of baby boomer clients have exceeded fidelity as recommended allocation to equities so theyre chasing the fed there to chasing trunks tweets about the markets higher theyre chasing their moment theyre acting like momentum traders on this were not right but you know dell of these comments are based on what exactly a few metrics that they are saying historically dont line up well im saying is that historically this is an unprecedented moment where youve got the entire s. And p. 500. 00 being taken private and it doesnt matter what price that is taken private that if the money youre using to borrow to take it private is free the stock market could go from 28260008 doesnt make any difference if its just being all taken private with the free money shockingly 10 percent of all boomer clients have given up on traditional retirement accounts and have allocated 100 percent of their savings into stocks and i saw actually speaking of boomers allocating 2 stocks bill gates himself they said that he gave away 35000000000 dollars last year but he made more than that on his stock portfolio because hes 60 percent allocated to stocks analysts of course were surprised retirement analysts for surprise he had so much allocated to stocks but 100 percent 10 percent of boomers have 100 percent of their wealth in stocks the fact is that a you know no load Index Tracking Fund as it exists or reconstructing constituted as such going back 40 years as a performer every money manager and hedge fund except for maybe one or 2 and thats the bottom line best effect. Stocks on average go up 78 percent a year for 40 years the stock market goes up to that of every 3 days for the past 40 years thats the fact well again past performance doesnt necessarily equal future performance and for the past 40 years weve had an all female post Gold Standard system so one day and we had Interest Rates up to 20 percent now theyre down a 0 percent so maybe it will keep on working for the next 4 and as Michael Hudson says they go to negative 20 percent thats 70000 on the dow all right were going to take a break when we come back by far away to go away. What explains the bipartisan commitment to under ending wars in Foreign Military interventions recent polls show the majority of veterans who fought in this centurys foreign wars say you wasnt worth it in 2016 gain traction for doubting foreign adventures to date is doing the same why are the leads so a lot of. Ways. They could still move to. Closing this weve got to do nothing in the disarray this. And i dont think. This is the only thing we do is music because everybody fights his way. Through or you can. Leave it at that but. What i see is this is the that is what. Welcome back to the kaiser report imax keyser time now to go to basel of unchained capital some call him what the carl sagan on the pickaway wow thats pretty tall anyway welcome drew thank you max so this is some fascinating stuff youve been working on aside from your day job over there don thank apple you but really studying a lot of the big issues surrounding big coin big coin astronomy what is this wow its youre right its something that i do outside of my day job but i think its something that compels me i think anybodys day job no matter how passionate they are about it koren or whatever theyre doing day to day can get repetitive sometimes its fun to zoom all the way out and for me that is thinking about the longest time scales like 100. 00 plus 20300 years from now what has it done to our economy here on earth but also in adjacent places like mars the rest of the solar system assuming or presuming that we even continue to expand in those directions all right i as ive said often you know change big oil and big coin changes yes indeed it has this way of really working the way people think about things and you come up with an interesting metric here just to skip to this bit because it pertains to this this center of past what is that and why does it matter what analyzing big point that its most like the most. Silly idea but also really really deeply central if youre willing to take seriously the idea the big one could survive for hundreds of years and still exist when humanity is spreading out to the planets so lets take that as a given the idea is basically saying where it is because mining happen on average you know any distribution of mass or matter in the universe you could calculate the center of mass kind of where it would balance if youre put your finger right underneath and similarly you can kind of ask where most of all the hash rate miners mining because in transactions where is the geometric location in space that its the center of all that weighted by house and. Today if you were to do that calculation and surprisingly youre going to find that its somewhere near the center of the earth maybe its because for china. Over time as we spread further and further away from the center of ash here at the earth it becomes more and more disadvantageous to mind because again this is not really anybodys problem today were all basically a light 2nd away from the center of hash but what if we have a civilization thats growing on mars will they be able to use big quinn turns out i think the answer is yes theyll be very much be able to be 1st class citizens and users and hard learners of decorum will be able to mine because the answer is no and its fundamentally because theyre far away from the center of hash there are some mathematical properties that are big in the big core and that interact rather poorly with the fact that the speed of light is finite it takes 45 minutes for a round trip signal to get between mars and earth sounds like a kind of a pain in the but more importantly it prevents mining entirely on the planet mars is this a problem i dont know certainly again not today in the future it might be if you were a martian. Putting martians aside for a 2nd theres a lot of billionaires in america now that are looking off terra firma planet earth as a way to what they perceive to be a big problems here on earth and youve got billionaires building rockets building spaceships youve got a lot of what is tesla into orbit with a space man jeff bezos at amazon hes worth over 100000000000 hes talking about space travel i think were going to be colonizing the moon pretty soon mars is you know a skip but a jump from there so you cant take gold because its too heavy. And figure out money has a horrible track record in reputation so big going could very well be the interstellar money and its this is not necessarily outside the realm of the near future not Science Fiction but this science probabilities and ive always speculated that people watch the show know that i look at the sas rate of decline and its been over 100. 00 quintillion have. As per 2nd our calculations per 2nd is the biggest a shit Network Computer network ever drew in the history of the world by huge factor and its aims almost as if its whats driving it is something more than just coming up with unconscious datable money its come its theres Something Else behind it i have i have spoken that actually the protocol because protocol is almost as if its hacking humans that humans are on a course toward selfdestruction and if this protocol can get into our brain sufficiently we could change course and save ourselves or wait were not going to make it and you could say 100150000 price point but humans will become extinct. You know thats a possibility as well so youre a physicist by training so how close are we to make a voyage to mars ok so weve definitely been to mars and we as humans were not quite made it there i mean i almost wonder if these billionaire driven attempts to colonize it might get us there before anything that nasa puts together thats just an interesting market versus government exercise there this point its happening man like one of my favorite conspiracy theories is that every product that one must build is actually secretly something he wants to use on mars right so the Battery Technology is for the things out there at the Boring Companies so that he can build tunnels in the crater rim so you can have spin gravity these are silly ideas and want to conspiratorial but in the end as little as 20305100 years things like Nuclear Fusion things like actually children being born on other planets it can happen it could have already happened we just decided that there wasnt money to be made in space for a bit and we gave up i think were starting to see that theres a lot more thats interesting out there wants more maybe were just terrified of what is happening on planet earth and this is a 2nd chance that some of the wealthiest of us will seek to grasp i dont know but going back to your comment about big. Changing us. And i think one of the unique aspects about the coins thats one of the truly scarce things that you can envision material goods gold dimes and these are things that exist all over the solar system in the universe more generally a big point its a game we play and weve chosen to make it the most scarce possible thing that can exist thats extremely interesting because its also tied to Something Else to scarcity were less in touch with and thats energy and we live in a bountiful era of tremendously cheap energy are energy thats cheaper per unit than has ever existed in history before and that messes with us as a society to it leads to consumerism and and short term thinking in a lot of ways and an addiction to that cheap energy thats really hard to break off as we consider things like the oil industry and Climate Change and so on so i so they figured it would bring him into more of a philosophical question so you do have on a relative basis cheap energy the density of petroleum is very high as compared to other forms of energy from history you know for whale oil and going back you know before the coal and these type of things and so that cost for b. T. U. Drops precipitously and but it has led to this over consumption and then my product being this ecological disaster in the plastics and the ocean thats incredibly cheap cheap cheap this of Oil Essentially how cheap it really is and a lack of investment in new alternative and even more dense Energy Sources like Nuclear FusionNuclear Fusion isnt a pipe dream and its always a joke that its always 30 years away but if you look at how much funding Nuclear Scientists ask for and how much theyve actually received and you look at how much private investment is going to be a power its tiny compared to what it might have been if we hadnt had cheap abundant and Global Energy supplies in oil so its a big one is surely scarce and as you point out these other minerals and Precious Metals are available in another places in the solar system and in the universe and not so what with big going it could be that the scarcest come on. Any that we have ever come across and the desire to own it is quite powerful and the hashing acquirement gets to a point where the ship cant keep up and you see a hybrid human and then android. Merge and so that hash starts infiltrating our collective unconscious is what im saying is that the hash about that 1020102000 extension 00. Could tap tap into our collective unconscious and use our minds as a collective computer to ask i mean big corners will do that as a sign is that even you know my tallie off base there lets put into 2 categories like the hash rate must go up and because thats what the coin wants its obviously not going to consume 100 percent of all our energy that would be ridiculous we need to do things like record shows and travel and eat food and survive so theres going be a maximum amount of energy between can consider is a big coin was energy to give you an anthropomorphic quality youre referring to it as a as a or as a hungry hence its a already. So it is it says he and is and isnt selfaware ive for i posited that iran block 300000 became selfaware it reacts in that way its alive right its build it has a certain aspect of homeostasis built into it rebalances itself based on global efforts by billions of human beings well maybe millions of us who actually know about it today so that sense its reactive i dont know that its a lot or that it ever would or that would even be an advantage but i do see it lifting us up in very many ways maybe it helps push us towards cyborgs that are hashing all the time as they think and walk around or maybe just incentivize us to go get Energy Cheaper faster and better than weve ever had to before because today if you were to unlock a big supply of energy in some location what could you do with it you need to market to sell that energy in liquid is this ever increasing for of a market that no matter where you harvest the energy if you can burn. By mining big point you can get revenue from that so if theres energy in space that were not harvesting we could collect it and turn it a bit quiet if there are Nuclear Power plants that we could invest in to build that might be something we decided to do because it helps us get picked on and this is a story of people who understand that actually because it is green it is ceos is renewables and it goes and seeks out where theres excess energy and thats not being or it can be green i think because x. And it forces us as an ecosystem to go collect energy in the most efficient and at ways we can and theres a lot of headroom in renewables and alternative Energy Sources because we havent had investment to go out and get those as much as bequest prompting us to finally do theres a lot of work and study in writing that it is a living organism its mistakes energy yeah and its adaptive it has all many qualities that want to scribes to a living organism or maybe the organism is because the miners the users the society its embedded in and the 1000 year long millennia story of to coin is the expansion of that organism to new locations in space to harvest new amounts of energy well there is a 3rd of the gaia theyre not sure if really what that yeah sure the 2nd are all part of the same living organism the rocks the trees the animals and salt has a heart beat him its own cosmic heartbeat if you will the big point somehow is is the engine is emerged as a way to nervous system it will i think to tell you the truth its who are created the universe in my opinion has trying to find their way back in because they became anonymous and they went on to create some other stuff and were unaware and then they look back and they said that whole thing i did that the earth is turning into a cesspit i need to hack my way in and reprogram human brain because its going down the garbage and this is this is a big point this is the ashtray and that they were going to be reprogrammed and one whatever block number it is were going to were going to take a different angle toward law. I and scape our destiny as it is right now out of death and we certainly be i think hyper pickling ization is sometimes trotted out of this word that means that because yours will get rich because because we were thought that might be one of the things that happens in the context of it but i think the word itself to me is way too because it means so much of what we do a society which is driven by incentive structures money the exchange of value contracts all of that can change and doesnt say if a coin works we wont need money. I think money will think about it differently certainly a part of the collective. If we go from the west back to the east will be just grooving on the way of our own collective in chapman all the way to the stores to any non muslim well we got to go are you heading back to austin texas which by the way the symbol of the logo is keep it where indeed and here over there unchained capital which i understand is an emerging institution thats breaking all the rules and get a lot of traction so congratulations with that thanks for being on the kaiser thank you max thats going to do it for this edition of the kaiser report was a mess guys or Stacy Herbert want to thank our guest drew the bonds all of unchained capital if you want to catch us on twitter at kaiser report the next on. Over the last 3 decades the European Union has seen its enlargement as a way of helping its eastern neighbors democratize well keeping them firmly within the scioto political as the e. U. s mantra the bigger the best person to be the case. And the longer you know one of the normal. No no free shipping. Appreciate. All they have and its not so for the moment im not faulting us once and im going to have been its a bit. Of product the 2nd best