Politics and geopolitics so he now openly says what was always the truth for example that were there for their oil we werent there to help the women and children of iraq were there to take their oil and that is the truth and that has always been the truth he has revealed this truth he has also revealed that in fact our trade policies since nafta since especially the china rising into the debbie sheo has been a bad deal for the majority of workers in the United States that has been revealed now one of the things that has been going on since this financial crisis and back in 2009 in 10 remember we had many debates here on kaiser report about whether there was going to be inflation or deflation and a lot of people like peter schiff predicted hyperinflation because there would be so much money printing they cant print 14. 00 trillion dollars and have no inflation well shadowstats that John Williams runs was always the one that measured real inflation remember he removed all they had donek adjustments now so we never actually see inflation in the fischel numbers but wealth richter at wall street dot com i think has figured out that where youre starting to see it and that is whats behind the sub prime Consumer Loan implosion these are the good times but why are subprime credit cards auto loans and short term installment loans blowing out ok weve got a situation in sub prime Consumer Loans the delinquency rate on credit card loan balances at the nearly 5000. 00 smaller commercial banks in the United States this means all banks except for the largest 100 is blowing out according to Federal Reserve data and the 3rd quarter the delinquency rate at these banks rose to 6. 25 percent. Thats even higher than during the peak of the financial crisis so the delinquency rate has more than doubled in just the past 2 years delinquency rate means 30 days or longer overdue your payments are. The largest banks have delinquency rate of 2. 58 percent so half of what youre seeing in the subprime sector. And as we cover here one explanation is greed and that these you know they used auto dealers are just pushing loans on people just to get that 20 percent you know Interest Payment for a month or 2. 00 knowing that persons going to go bankrupt so the missing inflation number has been discovered right because as you point out he donek adjustments hid the inflation and when the government reports the Inflation Numbers if something is rising in price a lot they cut it they dont report it they dont put it in the basket of c. P. I. Dont put in the basket of the inflation index that they use to report on Inflation Health Care was getting too expensive so they removed it however americans are now borrowing lots of money for that skyrocketing Price Health Care and we see that now in the defaults on their subprime credit rate and sub prime auto because you need a car to get to work you need a car to get to the hospital and these are things that are not included in the basket so now the missing inflation number has been found its in the collapse of these loans sub prime and auto sub prime. Consumer credit and so now its going to be almost impossible for those out there like that any blood flowers of the world and other fed chairman and other central bankers to say oh theres no inflation is no inflation no thats absolutely wrong heres the hard core rock solid evidence to prove youre wrong ok and were going to go into the 2nd explanation he had his 1st explanation is possible greed by these debt pushers now. Hes saying it could be hidden inflation this is 2030 years have had donek adjustments that are now suddenly revealing themselves not through the actual numbers but the actual default rates and delinquency rates skyrocketing here the other factor in the subprime tormato may well be Something Else prices of goods and services they need that these subprime people need have risen sharply and outpace their incomes and this can happen overnight this includes Health Care Costs and it includes food costs an apartment rentals and cars have gotten a lot more expensive but cars and apartments and cell phones have gotten a lot better too and these Quality Improvements are added to the price think of the move over the years from a 4 speed automatic transmission to an 8 speed automatic or from 2 airbags to 10 airbags or from a basic cell phone to a smart phone i mean look at the i phone for example the i phone 11 its infinitely better in terms of the quality of the video and then the government bureaucrats will say well were going to donna just that yes sure the price is what 121300 dollars and set of 800. 00 that you could buy an i phone just so you know 5 years ago but were going to say that its still 800. 00 because its so much better so thats how they hit dominic leah just this and the fact that in fact people are paying a lot more. Indeed despite their incomes not going up as much were starting to see that they have less and less cash reserves less and less ability to withstand a surprise payment the government has an incentive to miss and under report inflation because of things like payments to Social Security are tied to inflation and they want to keep those payments as low as possible so theyre incentivized to lowball the number they came up with this idea of he donek adjustments into a classic example is an take stake out of the basket of goods that we calculate inflation and put hamburger right thats a classic adamic adjust with it so we say the prices have not gone up. Those were removed the stuff that goes up in price they include stuff Like Electronics built in asia under slave wages as having a lot of influence in the basket of prices because its under really what it would cost to have somebody manufacture that with a real job here in america and you end up with a mis reported number that is used to justify low Interest Rates and artificially low Interest Rates on one hand and number 2 they get the mainstream Financial Press to misreport this number of the Financial Times the wall street journal see n. B. C. They carry this false message fake news that theres no inflation john willing to shadowstats is wait a minute if you were to calculate inflation today the way you did 20 years ago its only an 8910 percent in america thats the truth but they dont do that anymore but heres the proof this default rate on these loans does the missing inflation this is what the rubber hits the road this is it all that has been hidden is being revealed right now for example the repo markets its hit in only a few select bankers know whats actually going on the fed the new york fed rescuing the system know which bank or banks are in trouble somebody is in trouble somethings in trouble somethings happening but were not allowed to know it but its being revealed this crisis is being revealed through the interventions here in the in the markets were starting to see the that the stress in the credit markets the subprime credit markets which are which are the same as during the financial crisis when there were millions of jobs lost and therefore people couldnt make their payments here we allegedly have a great economy jobs are plentiful the Unemployment Rate is that all time low wages as the fed has even pointed out have not been rising so sharp but during these sort of times is when we see why the truth gets revealed is because if were having a massive rise in inflation and of course for example rentals Everybody Knows that because of the disaster of 20082009 theres an all time low in terms. The amount of americans who could afford their own homes so they rent blackstone and all these private equity own all the properties rental rates are up to 10 percent a year in some places and that is causing stress but the fed doesnt count that into c. P. I. The government doesnt count that into c. P. I. And said they do own or quibble interests and thats way low or Something Like one percent or 2 percent a year rather than the double digits in many places and so you can see that for example wolfert to points out remember his background is in auto sales and stuff like that so he really focuses on that he said with used cars for example you can see that the most the feds the governments own data the c. P. I. For used cars has declined by 11 percent since 1905 but actually used car prices have actually soared since then there had donek adjustments for the Quality Improvements in these cars suggest that in fact is down by 11 percent if you count how much better this car is than no car you could buy in 1905 right there the default rates are not occurring because of an economic downturn but if they did previously and thats understandable the default rates are happening now at record highs because of the hidden inflation not been reported and of course any time the Mainstream Press will report on this they will characterize it as a product of greed which is foolish because in a capitalist free market capitalist society runs on greed right socialism runs on bureaucracy capitalism runs on greed to cant be cant. Fault greed and any aspect to free market economy especially from banks and corporations that are imposing monopoly pricing as blackstone is doing in the rental market thats beyond greed thats a kleptocracy then the problem is a kleptocracy blaming people are trying to get by day to day is greedy when the fact is intrinsically and empirically what were seeing is the hit Inflation Numbers that the New York Times as a report that no other Mainstream Media outlet reports because theyre in the bag on the payroll theyre in the jig is specially when is as i said that masses higher hierarchy of needs you know nobody needs an iphone but they do need a house and rental units are going up they do need health care especially the law changed to you have to have these Health Care Products those are going up by double digits a year every year for the last 567 years and maybe somebody dips into their reserves and you know they could afford it the 1st year well technically you know just struggle to get by and we every year we keep on seeing these signs of like oh the average american only a 600. 00 for an emergency now is 400. 00 now its 200. 00 because theyre eating into their own reserves to afford these basic necessities i saw a tweet from this financial analyst luke grown men he said just got my Health Care Renewal no change in coverage no change in Health Care Status knock on wood premiums up 20 percent this year to 1286. 00 a month with 812500 dollars deductible this was 450. 00 a month and 2014 with a lower deductible as he points out thats a 1000 percent annual inflation rate that hes suffered since 2014 and thus monopoly pricing trusts. In America Running rampant beyond even during Teddy Roosevelts era this is become a huge scourge which is destroying the economy in a big way and the way to break that up into. Sector would be to do the exact opposite of what donald trump is suggesting dont trump is saying we should take rates into negative territory that that encourages the zombie banks and the kleptocracy to prey on americans even more so were going to see more opiate deaths were going to see more violence on the border were going to see more social unrest because thats what negative Interest Rates do donald trump if you want to really do battle against the kleptocracy you need to raise the cost of financial terrorism by raising Interest Rates full stop what is being revealed is the bankruptcy of the situation so its like that Ernest Hemingway quote from i guess as the sun also rises where theyre talking about he went the character went bankrupt slowly and then suddenly so as well for your points out about this whats going on in the subprime market and that doesnt mean that these people dont have jobs somebody could be earning 200000. 00 a year and theyre subprime because of a Health Care Cost or Something Like that caused them to miss a payment or to you know be unable to make one 100000. 00 payment for their air helicopter that came rescue them after you know a car accident or something so he says this goes increment by increment what might have worked last year suddenly doesnt work anymore this year these consumers with jobs that have been living from paycheck to paycheck suddenly find themselves confronted with a 20 percent increase in Health Care Insurance premiums or a 10 percent increase in rent or both so its these increment by increment as you saw with that grow men he had to find 200. 00 over 200. 00 a month extra thats 2400. 00 a year that you suddenly have to find to get the same exact product the same exact product your same exact Health Status and still it goes up by 2400 a year so speaking of hemingway your trumps going to rerelease old man in the sea going to call it make fishing great again all right were taking a break when we come back much more coming your way. Im going to fulfill the repeated promises apologise to the people and come on you know weve all pots be. Ready for a. Pretty good burka now you want to 1st crack that. No. Balls be cut. Join me every thursday on the alex simon show and ill be speaking to guests of the world of politics sports business im show business ill see you then. Welcome back to the kaiser report im max keyser time now to turn to dave column hes a professor of organic chemistry at Cornell University so he must be smart hes also a libertarian who writes an annual must read year in review in which he looks at the economic financial and cultural trends rocking society dave welcome back this is a troll will be back this is less material for me all right awesome so dave last year at this time markets were tumbling this year jerome powerless handing out free money to the crybabies on wall street markets are at all time highs as the result i know you suck at math but can this fed q e not q e sustain itself dave not forever if it does itll be the 1st time anyone print their way to prosperity so. I dont know if i found a bigger tent here. So to say i know what its going to be for which bank of america predicts quote quantitative failure that more monetary easing will never answer the real economy and only push more asset price bubbles so do you agree with that and what does that mean exactly dave the economy has certain needs. And i dont think taking credit even lower will cost them to build yet another factory or earn another house or buy another car and then on top of that since everyones pretty much up to their talents and debt. And they learned from the last crisis the debt kills so so thats thats else which is working anymore so i think were probably being conservative theyre trying to get animal juices flowing. But i dont think its going to work. Companies need more capital those are started and when you look at the plumbing of wall street and the banking system. We noticed that in the repo market which is kind of one of the base layers of how the financial ponzi scheme a stacked there seems to be a stress going on there that theyre seeing it looks like waste what we saw during the 2000 a crisis but a lot worse what do you make of the repo market and the Current Crisis happening there dave identifer the scariest you know battle if youre with the borrower im trying to figure out what the republic is no way for people who havent noticed this it turns out the best the market where banks lend to each other and and the rates fairly steady you know for 10 years now and its smoothly. And all of a sudden the right plan from around 2 percent to 9 percent enough and a heartbeat metaphor and you slice your party out this was looking at always how it was fat and then that happened again and so so theres some sort of. Some sort of cardiac arrest going on inside the pipes of the bank. I reached out to many many people trying to find out what this is a spent 2 hours talking Grant Williams on the phone on the saturday night we can quote none of us know whats going on theres about 20 different theories. Theres something wrong inside the pipe is that frustrating as a professor at Cornell University to have to admit that you know nothing my history goes back far no you guys actually know a little bit of it. I have wallowed in their grants for for 64 years now and have no intention of stopping so frustrating it all sounds very socratic you know you kind of open to the truth and you ask a lot of questions but all kidding aside here are your tweet stream on twitter is full of interesting nuggets and insights and i curse people to follow that and let me continue on here so nobody knows nothing about the true state of Central Bank Intervention we see nation states stockpiling gold and others like poland and slovak. Are repatriating their gold so although its hard to establish whats happening in the repo market because theres a lot of opacity there gold market is pretty straightforward people buy gold when theyre worried about whats going on and these countries around the world are stockpiling gold theyre repatriating gold what do you read into that if anything dave has been going on for the better part of a decade now at least them russia china. You know germany color all its gold back. I think holland just did then mark i think they call theres back now and so on and as you said poland doubled its gold stash almost overnight so i think what will frustrate people is that even a good play like buying gold during stressful times so i can apply a quick way its going to take years but i think well go market is telling us that theres something going wrong. We would be the threat would system when the dollars are currency and that there are some peoples farming in our future let me try to summarize the conversation were having so far we we both agree that there are a lot of warning signs out there the financial plumbing since the falling apart people are panic buying gold but at the same time theres also record levels of complacency. You know you i think you know its hard to make a call because this has been going on for what for 10 years weve been saying this buildup for 10 years its really hard to you nobody wants to go out on a limb and say well there it is if there is a problem its all going to blow up in the next 6 months because that calls been wrong for 10 years people have been saying the bond markets going to blow up for 10 years and has it keeps going up etc you know theres a lot of complacency out there dave in the markets and in Academic Circles is it is a. Its a dangerous complacency sometimes a space best not to do anything and to just sit back and sometimes it can be the worst thing in the world to be is to be complacent what do you think people should do should they just throw up just shrug their shoulders and just see what happens or should people be actively protecting themselves against what could be a pretty severe financial event well whatever they do the afternoon whatever they have to go they can sweep way and and so if someone for example jumps out of that market. And then it keeps going up and it fries real crimes and they jump back in is the fisa purpose so they really have to come to terms with where the rat if they jump out of the markets weathers the gold market or an Energy Market or equity market whatever you can find its very hard to get back in i mean sitting on the sidelines on the equities for quite a long time. And im white knuckling it theres no chance of me and ill go to my grave without my activities unless the same some back to a decent valuation. But you have to wrap your brain around you you cant just say oh max so me or dave told me this that i got to get out of equities if you dont fully understand what that means you will fail. 5 sitting on a stock pile of cash and and stocks and im trying to make fine tune my part follow though thats one consideration around the world these issues that were talking about the banks committing fraud they Financial Markets in disarray countries and large corporations hoarding individuals hoarding gold thats being is expressed or manifest and what we call the global insurrection against banker occupation hong kong lebannon venezuela argentina the 20 countries that inflames protesting an extension of what we saw in occupy wall street the worlds population is waking up to the fact that the Central Banks are out to kill them essentially and steal their money are those people wrong well you know we hear the trade phrase markets are forward looking and i would have to say this if that phrase the true and then therefore the paradox where if markets were so forward looking why wouldnt they know that theres a crash coming. But more to the point that even the markets are looking past that or or theyre not forward looking i think a some point were going to have a real mess on our hands and i dont know when but its a much scarier world to me now than say you know 2000 i think 2000 was dotcom bubble the world seemed like it was in great shape now it doesnt feel like its in great shape at all and the door is very polarized both politically within countries and between countries so i think its unfair for turning them on i guess what folks who are in the business of fine tuning their part follow the as and trying to front run the fraud which is the primary occupation here in america for the billionaire class i guess what theyre trying to figure out at what point is enough enough because i may have like Michael Bloomberg tripled my net worth thanks to fed bailouts but if the people with torches come and burn my house down and get sent to a good team and i might not be worth it in other words i will point to people the billionaires have stolen all money at what point did they did they reconsider that maybe their health is of primary consideration more so than their wealth you listen to the socalled billionaires a lot of them are out there talking about how they feel really bad their own billionaire son and youve got ray dahlia constantly and guy they all seem to be going to see why a on there well i dont actually blame the billionaires if the market there is the way to translate the markets is simply a free market response to the Monetary Policy so the guys i believe are central bankers and he says the billionaires tweak the central bankers i dont blame the millionaires but but if im buying you know David Einhorn or great value or someone and im watching the fasm else. Ok best again were going to make me cry out why they do you know while we get bill yeah i know i understand that and the question i guess would be that its theyre like ok the feds going to give us free money were silly not to take the free money but on the other hand there are riots and uprisings around the world that are becoming increasingly more violent so at 1. 00 point this rate ballio say you know what im going to insist that the fed raise rates to raise the cost of financial terrorism because if i dont my own entire towns going to be burnt to the burnt to the ground i mean its ok to front run the fed and and steal billions as rape dahlia does but at some point hes going to probably start to think more strategically and we only get about 20 seconds left the whole show or for another segment but. You know it in other words is see a suicide capitalist think so but theres no way to get from here to to normal without paying and so i think great dalyell is theory a risk even if its a sad if the system or to try to correct were going to correct for our value that i dont think are going to cut off their oil keep you know were for another segment thanks for being on the kaiser report thats going to do with a subset of kaiser report with me max kaiser and Stacy Herbert like to thank our guest dave column if youd like to get in touch tweet us the kaiser report until next time by yall. Facebook and google started with a great idea and great ideals unfortunately there was also a very dark side. They are constructing a profile of you and that profile is real its detailed and it never goes away turns out that google is manipulating your opinions from the very 1st character that you type into the search bar it will always favor one dog food over another one comparative Shopping Service over another and one candidate over another they can suppress certain types of results diced on what they think you should be see if they have this kind of power then democracy is an illusion the free and Fair Election doesnt exist for the more growth we give them the sooner we all handle. This in the individual i think very much i have to do what i think is right i have defended to defend my values have to defend my principles and if i feel the state is not doing it according to what i think is the right thing them i have to stand up and say its not good enough and if i as a humanitarian feel that the next to me is not respected and treated in a dignified way then i have to also stand up in this regard so yes we have to do it despite that it is maybe a very long term fight and we are not necessarily winning the. U. K. Prime minister Boris Johnson is on course for a landslide election victory according to exit polls. Expels 2 german diplomats in a tit for tat move amid a dispute over a murder investigation. Magazines person of the year in 2100. Well look at the rapid rise of the 16 year old. Broadcasting live direct from our studios in moscow this is our Team International and certainly glad to have you with us for an exit poll
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