But theres a for me my colleague kevin i want to be here in about an hours time with news from those stories in the headlines so you can head to our team dot com but right now its time for. I am max geyser this is the kaiser reported ever that movie the 6th sense and the big line the money line was i see dead people this is going to make more sense but 1st we need to talk to stacy well certainly we do have a zombie economy thanks to the never ending parade of free money from the fed and the growing pile of debt because you know this past week we saw the global debt pile hit over 250. 00 trillion 255. 00 chilean to be exact is probably up another chilean or 2 by the time this airs so the fact is we have a lot of debt and its piling up stock markets are hitting all time new highs some even Yahoo Finance is starting to connect the pieces that maybe all this debt and all this free money is driving the stock markets but even your own powell and testimony he said the debt is growing faster than the economy its a simple as that you nominal terms and that is by definition unsustainable ultimately you will have to get it to where the debt is not growing faster than the economy and its growing faster in the United States by a pretty significant margin so as you say its growing faster than g. D. P. Is growing faster than g. D. P. It takes 3. 00 of debt to induce 1. 00 g. D. P. Growth right you know it reminds me of the story about the martin who is pumping formaldehyde into the corpse and saying that no matter how much formaldehyde i pump into those corpses breathing doesnt get any better and then of course the obvious observation would be well its a corpse the corpse is dead. It doesnt matter how much formaldehyde you pump and so 3 in the case of the Global Economy and in the u. S. Economy in 2008 it does there was a credit crunch as you recall and the solution was to pump formaldehyde in the what is called money but its not money like gold its money its debt its debt right all the quantitative easing all the money printing all the bailouts debt with interest costs associated with it and that interest cost now is approaching in terms of a line item the equivalent of the u. S. Military budget so when krugman says its only money we owe ourselves hes wrong of course the United StatesFederal Reserve bank cannot create assets they cannot create treasuries that is up to the u. S. Treasury the congress to create treasuries so they cannot if youre looking to this guy before looking to jay powell or droom pal yes have 2 names everybody gets confused right if you were looking for him to you know basically stop flog all he could do is flog a dead horse hes a Monetary Policy guy hes not a fiscal policy guy theres nothing he can do to change the situation that the horse is dead its only you know you have to keep the horse from dying what in the treasury is debt its a its a short term loan its a 30 day loan or a one day loan its still debt if you look at your dollar bill it says a Federal Reserve note note if you look that up in the best pedia itll tell you its debt debt is a note right there not creating this stunt has nothing to do with money its created is for mal the high its monetary formaldehyde and theyre trying to and theyre complaining that the corpses and breathing and they just are failing to acknowledge that the Global Economy died in 2008 fall stop everything like the titanic even. I made this analogy before just because stocks that would be the stern of the titanic is going up doesnt mean that the titanic will shortly sink to the bottom of the ocean and of course who is that rough child who says that the markets can stay or astral longer than i ne but he can stay solvent of course it could go on for another year or 2 years or 3 years until after trump is reelected or whatever you know these markets can continue to stay high of course the democrats are hoping that it all crashes and there are a lot of people hoping for a big crash but right now we dont know it keeps on hitting all to time new highs and it probably will continue to hit all time highs because nobody actually seems very concerned about the growing pile of debt or the moodys yes what do you want to say before i get to that headline. Right if you were to do it adjustment to stock for stock prices removing the stock buybacks that have been enabled by the creation of trillions of dollars of debt money the stock market would be struggling to stay above 10000. 00 would not be hitting you know close to 30000. 00 so once again its not a function of the economy or earnings its a function of the neo feudal is ation of the American Economy these companies are being taken private with the free debt given to the plutocrats and the oligarchs so could go to 70000 on the bell but the stock market as we know it for many decades will cease to exist well lets continue with this theme of the Federal Reserve bank led by Jerome Powell and what he is able to do to flog the horse and everybody can agree that you know he can perhaps shock it and make the legs kick a little bit the horse is still dead but the legs are kicking and that is the stock market rising so people keep on celebrating oh yeah its all great but were all that debt downgrade warning by moodys a world debt downgrade warning which is called w d d w has been issued by Credit Rating agency moodys due to deepening. Global geo Political Uncertainty and risks so moodys says issued a debt downgrade warning to the entire world on fear is that severe political turmoil from london to hong kong poses a threat to the Global Economy before i get to the other points lets stop and discuss that because of course its not the debt theyre warning of that the 255. 00 trillion dollars is the fact of the cantillon a fact that all of it is going to buddies of german pow and the e. C. B. And the bank of england and the bank of japan is going to the top one percent is going to those who own the Financial Assets that are going up hitting new all time highs that is causing the unrest and thats what theyre saying is like your own policies to your own pal this unsustainable debt that you admit is unsustainable but its all going to increasing the wealth socalled wealth of the very wealthiest which of course that wealth can evaporate overnight once these people see the barbarian storm the gates and and demand the fed stop printing money to continue on my formaldehyde and corpse analogy the cantillon effect describes the role of warren buffet or jamie diamond as the mortician they get paid to inject the formaldehyde into the corpse and they get paid a lot they get paid billions hundreds of billions to do this job but the fact is that the entire world now is having its debt downgraded this is important for 2 very Important Reasons number one the presence of aaa rated government is shrinking rapidly like the ice caps and therefore its useless collateral is evaporating very rapidly which means that most or all debt or debt in general is all trending toward junk and the history of junk is that almost you know preponderant portion of it goes to 0. The 2nd. Paul if the World Economy debts being downgraded the prospects of planet earth being the subject of a leveraged buyout by lets say a martian or someone living in a parallel galaxy degrades rapidly it hasnt downgraded the debt its downgraded the outlook for debt and its entirely im going to go over the other points its entirely because of the deplorable people its entirely because they dont understand that we have the divine right of the day pushers like these the wall street has a divine right to this free money and the deplorable people just dont understand this because moodys said political and geo political turbulence is exacerbating a slowdown in national and global g. D. P. Growth aggravating structural bottlenecks centered on massive banking and sovereign debt and increasing the risk of economic or financial shocks moodys identified the emergence of influential quote populist movements and suggested this is undermining the effect of ness of domestic policy weakening institutional strength and compounding social and governance risks you notice how they have that all backwards is the populist movements who are undermining the effectiveness of domestic policy not the Federal Reserves not the Central Banks of the World Printing money and bailing out bankers if thats not the cause of these populist movements that are out of the sense of injustice and you see those are the sort of words they use across the world wherever it is and lebannon are spun this began with occupy wall street and it morphed into what we call the global insurrection against banker occupation is causing this global that downgrade and to be clear downgrading the outlook for debt and downgrading debt as far as the market is concerned are equivalent because it in genders assail and means prices go down well markets dont seem to ever respond to negative news is that they like it seems to be warning them do something about your population whether its lie. D. Platform everybody dont loud them you hear any news dont allow them to watch guys report you know do something to make them you know prevent them from stopping our game where we always win the sovereign debt in places like argentina and venezuela to name just who is crashing propitious lee and its also this debt is if you take away the extension of the maturity and you focus purely on the number of bonds that were sold 10 years ago 15 years ago theyre all crashing well i do notice you have on your tie there are some computer monkeys who are famously part of that experiment whereby these 2 monkeys side by side in a cage theyre very happy being fed a cucumber a piece of cucumber by the scientist and then the scientist gives the monkey to the right a grape where suddenly what you know the monk the up both monkeys were happy with just a cucumber and then they see they get the grape on the right and what happens the one on the left the one on the left is preserved and then he wont take any more cucumbers and threw them at the scientist and angry that at the injustice that why this guy to my right why does he get or she get a grape and i dont so there thats the situation were at where people are angry that the fed is giving free money to a certain class of people the top one percent and the bottom 99 percent get austerity and the effects of meltdowns well thats human nature you know and starting 27 hours of you know. Monkey human nature and starting 2700 years ago people like socrates and plato try to even that was something called philosophy in attempt to imbue into humanity a sense of a higher purpose and here we are in the 21st century and it appears that thats impossible that we will never escape our nature as wild beasts well. The economists in this final tweet and chart here we have them encapsulating whats gone wrong these socalled populist movements that we need to stop the wealthiest 10 percent of adults own 82 percent of the worlds wealth the bottom 50 per cent account for less than one percent so this is the important chart here is millions of millionaires so their numbers are rising around the world all that and the dark blue on the left is the number of millionaires that we had preety 2000 and then from 2000 remember bill clintons last days in office he got rid of glass steagall and he introduced the commodity futures modernization act which allowed this separation of risk and reward where the top one percent got to keep all the reward and the risk got to be put on to the rest of the population and all the fed interventions have happened since 2000 weve seen a rapid dest deescalation of of Interest Rates theyve been declining rapidly so you see this huge surge in millionaires that has happened since 2000 right and its all paper that paper almost overnight become worthless and so gold them without their house all be repriced against gold as it always happens throughout history and then we have a totally different paradigm were going to take a break and when we come back and much more coming your way so dont go away. And there was only something. I just got out of prison for. 41 games. Im sorry to hear and so. I got arrested for attempt something to. Go on like this everything was taken out of. My work and. It was. Meant to snow man it looks a little bit like me. About. Homicide want to come. Now. Were tough and. Youre going. To go. On the front trying to frighten. Us no good something right to. Welcome back to the kaiser report im asked as are time to go to Alison Macleod of gold money dot com as always i should mention away our investor in that company. Welcome back. Hello max already so global debt is now at 225 trillion muti says issued a world debt downgrade warning u. S. Stocks however continue to hit new all time highs whats your thought about this world debt downgrade warning i dont recall seeing one of those before whats going on. Madness is the i think. Wed be talking about this for the last 67 years the fact is that governments are in a debt trap and moodys are just woken up to it i mean whats going on. Now i mean. You know im thinking what what if some extraterrestrial show up and offer a the buy planet earth an elaborate buyout were going to get a terrible price because moodys keeps downgrading our planet. However going to sell ourselves to the aliens number one number 2 yeah i guess. I think i think we better take the aliens off because they were a bit better want us to show its just an odd situation really because its. Its a global world debt warning. But theres no policy out there that would say thats not fueling the debt right there when you when you print money when you engage in quantitative easing. Youre adding debt right so why does moodys one of the why they even say anything right there the other thing is though everyones adding debt its terrible we just acknowledge that theyre adding debt were really like brain damaged over here moodys we dont know why everyone pays us to come to work we have no idea and that Warren Buffett owns us were effectively brain dead like why does anyone care at this point the world is its like drowning in plastic and debt and theres nothing thats going to stop it. I fear no but the serious problem with this is the very little of this debt is productive i mean if you look where it goes it goes to governments that is that destroys money it goes to speculators hedge funds i mean wheres all that money come from basically its come from. Credit expansion and central bank printing thats a waste of time and money as well is going to the consumer in the consumers now max dose i mean how much of it actually goes into genuine production of goods and services that were prepared to pay for it seems to me i mean i dont know the figure but it seems to me theres a minority of all 255 trillion and we should worry about us right well to your point doesnt go to go to the services because goods and services are too costly to produce right if im a factory if i make cars why would i want to expand my car factory using real money when i can just give the free money from the government to my cash desk and theyll go speculating in the carry trade market to make me money right so its just too expensive and somehow i never even though its too expensive to manufacture stuff were still drowning under the plastic i guess i guess plastic i guess the you know the engine egyptians left pyramid. Were going to leave plastic thats it the future aliens will find plastic and thats all theyll find her i did think x. To ritually so fast it would feature in his spirit so youve introduced a rather interesting dimension to it yeah its a good place a plastic pyramid scheme filled by paper money thought up by air heads like jay powell although jay powell seems like hes putting up at least a mock you know trumps trying to go get him to do negative Interest Rates and hes playing the damsel in distress you know hes out there teasing the shows a little fi and hes like oh yeah i might cut rates i might not and he goes oh oh my big brother go negative rants you know its like this very bizarre courting exercise and then trample eventually when i suppose it will be beaten to some degree to lower rates because i do believe hes going to be resistant to negative rates. Well i mean negative rate. Completely wrong because it just stands time preference on its head we now have what they Say Something like 1617 trillion of bombs around the world on a negative yield i mean how do you climb down from the past its a complete nonsense the only way you climb down from that basic a is there is a massive massive collapse of confidence in Government Debt or alternatively a massive expansion in the quantity of debt which governments need to race due to a recession slump perhaps what what happens under those circumstances is. Governments dont get any tax revenue. Welfare liabilities go up and suddenly a one trillion deficit in the states is looking like 2 or 3 i mean this is potentially on the cards and i i really do think that. Trumps attempts to persuade powell to. Move towards negative Interest Rates is so misguided it really is because apart from anything else its going to put america into position from which he cannot get out and the other thing about negative rates with the dollar is it immediately puts the whole off the commodity complex including Precious Metals into permanent backwardation i mean it is just complete lunacy right now to review our backwardness nation back or nation for Precious Metals out the that the forward contract is trading at a premium to to a more. The level of the further on the on the maturity scale it shows a certain panic buying in terms of gold but you know one of the uses of all the money thats being printed is too and this has been proven time and time again anyone you know is that the gold price is. Are kept cheap you know by flooding the market with paper and even though theres record demand by Central Banks and the demand side and gold is having historic highs. The price of stock in this in this range because of the you know jamie diamond. Morgan is caught racketeering right they said it with a car racketeering on gold prices they know and the reports been warning for 10 years its true we caught a racketeering and then you know the response was to borrow more money of course because that there are. Their debt debt on holic so i dont know so so out there in a recent blog post you wrote plans for global dystopia you write quote Global Policy planners intend to deliver replacements for both dollar gemini and fossil fuels what are you talking about here. Well basically i think the way in which. Q. E. Is moving is not just to finance governments not just finance but sort of if you like favorite businesses in places like europe but also there is going to have to be a massive amount of investment in renewable to and this is something which is is written into policies in europe. And i can see that Christine Legarde is going to push q in that direction so its not just bailing out governments of bailing out banks which is the original intention of q. E. But it also i think its likely to be used to finance through monetary inflation a lot of the investment that is on to supposed to go into renewables right so im not sure i followed all that in other words. The dollar germany is the Current Situation your suggestion that Christine Legarde of the i. M. F. Are coming out with replacements so theyre actively working. Against the u. S. Even well even though theyre in nato right now the nato countries are breaking off from the u. S. What sounds like a what world world war is broking and then finding ideals are going to be subjected to Renewables Finance through this breakaway currency but thats the good thing right well perhaps i thought misunderstood what you know where youre coming from. If were talking about an alternative to the dollar then nobody actually has the answer at the moment and nobody i dont think will want to introduce goat simply because of the restrictions only a matter of of inflationary financing that you have once you have gold backing i mean basically all youre left with is the cycle of bank credit they Central Banks cant do anything so i dont think thats going to happen immediately and i know that theyre talking about it using crypto currency isnt all the rest of it but to what end we dont know yet i think that. You know the point the inflation point that im i was trying to make about europe is that when Christine Lagarde she is now head of the e. C. B. As of this month and i think that being a very Political Animal she is likely to use the facility to do what they call asset purchase programs of easing to you and i are going to use that i think not only to continue to bail out government finances bail out the banks as well but shes also going to use it to invest through pure inflationary makings in. You know it in renewables and you know the sort of the greening of everything and one of the things thats driving this i think is a realisation that russia effectively has. A growing monopoly on the Hydrocarbon Energy she is the largest exporter of oil and gas. In the world and because of various mistakes from the west we find that iran which is another big producer is not within that sphere of influence. And you know we can see that we could in time be beholden if you like to. To to russia and other asian states to a persona nongrata. And that i think is one of the things that is driving this whole move towards renewables. As well as obviously you know the sort of the Climate Change stuff and all that. So i mean when trump says that jay powell who runs the fed is americas biggest existential threat because hes not taking Interest Rates to negative territory youre pointing out that the e. C. B. Had krissy the guard who actually control the 17 trillion a bigger trading block than america is actually this is the true threat and trump never makes any comment about this in terms of you know transitioning to a post carbon coast post fossil fuel economy i mean this is going to have to happen one way or another i mean theres a lot of saber rattling when it comes to russia and the existent all that nonsense but the fact is theres got to be a transition its got to happen now the plastic is already babies are coming out of the womb plastic basically plastic babies these days because of the petroleum toxicity. We want to give up our humanity and become plastic people we got to make the transition now anyway we got a hold over for other segments of say goodbye but well say good hello again in just a moment alister ok and thats going to do it for this edition of cars report with me max kaiser and Stacey Herbert like to thank our guest out from a cloud of gold money if you want to get in touch with us at twitter its kaiser report until next time by. Young elephants have come to. My space leap through so putting incidents because sadly the baby elephants often do see their mother as need be killed but also be caught up unfortunate. I do believe the elephant smiled and i see its in the missile lands a home run express and changes. The. You know world a big part of the new law and conspiracy its time to wake up to dig deeper to hit the stories that Mainstream Media refuses to tell more than ever we need to be smarter we need to stop slamming the door on the bad and shouting past each other its time for Critical Thinking its time to fight for the middle for the truth the time is now for washington closely watching the hawks. Broadcasting around the world and covering