And the emergence of the petro dollar everything all oil all energy is settled in u. S. Dollars all commodities are priced in dollars and settled in dollars and all happens at the new york fed and everyone around new york gets a lot of money because they are in proximity to the new york fed and thats the way the world works of course the new york fed is the one in charge of the repo interventions at the moment they do say now that there is going to last through the tax season because they have another new excuse it was supposed to last for 24 hours and then 48 hours and then 72 hours then a few weeks and then a few months and now its going to last until at least april they say and we also covered back in may remember representative brad sherman of california hes a congressman from out there he said about bitcoin that big point we must stop it now because what theyre trying to do is replace the new york fed for exactly this sort of thing is what he was forecasting is that we need to control the settlements layer and the u. S. Dollar is the settlements layer when people say oh you know the you. Price neuros and thats a threat to the dollar thats not the threat this threat is the settlements layer so all trade for oil has to settle through the new york fed and this is how theyre controlling that all your you cant exist you have no sovereign rights unless you cut in as the middleman where the middleman you have that we have to approve of everything so that is why we talk about bitcoin and this is an exact lesson and what we were talking about for the last 10 years right this is why we talk about bitcoin exactly because it gives countries and individuals a way to opt out of the censorship that happens on the subtle middle layer of places like the new york fed and you know personally i have no idea why these countries who are being censored by the new york fed and who are being subjected to the empire of debt otherwise known as the United States of america dont simply cross over and switch to bit coin and achieve sovereignty im sure they have some sort of plan they take a while they dont move as fast as an individual can and thats why the individual is actually at a uniquely positioned place at the moment they can move faster the nation states can or Central Banks and governments can say you can get ahead of this this the thing we see coming because remember again you talk about censorship you know there are all these laws and stuff like that introduced its always about the bad guy were just you know these you know the patriot act is just to stop bad guys like bin ladin who does it end up like theres been almost 0 application to bad guys like bin ladin and who gets caught in the net all these good guys like aaron swartz for example he gets caught by all these bad laws that were meant for bad guys but it ends up like aaron swartz who was you know driven to suicide a few years ago just passes the anniversary is of a suicide just passed and look him up and youll see that here. You know when brad sherman said last year when he warned in may that bitcoin was after him like basically replacing the new york fed he said we dont want iran our enemies sees this but here theyre saying were going to cut iraq where we occupy the nation were supposedly some sort of ally at least theyre occupier like you know theres a Certain International obligations to if youre occupying a nation but here theyre saying were going to cut them off right so. What trump was said was that the new york fed has Something Like 30000000000. 00 i think its 3000000000. 00 and carrying a 1000000000 meant ok and he said they would owe him 30000000000. 00 in total if they got 3000000000 in cash parked there yet and he says you owe us 30000000000 and so hes simply going to cut them off and take that 3000000000 sees the 3000000000 and slap him with the invoice for 30000000000 like develop a casino in Atlantic City and he gets all the contractors to build it and says im not going to pay you i think its roy cohn a lawyer affairs at the time to hire a leg breaker like ray donovan they go strange things out right i mean thats the way the world works at the moment and the new york fed is is little private kitty its right downtown from where he has a big office well beyond that because its like he built that casino in your backyard land that you own and youre like wait who told you you could build a casino on my land he said give me 30000000000 for it and youre like ok i you know you give me 30000000000 this this should be the way it where you talk about iraq yes right he just pulled the number out of thin air that this is what you owe. Any respect new york developer would do yes somebody in times square would do that to you they shake you down heres another story i found this interesting because it was from the Guardian Simon jenkins wrote this and its really kind of fascinating because its more Mainstream Media so this is what hes looking at. What is happening in iraq and iran and all this conflict going on and he says Donald Trumps rant against iran is the how of a dying empire all empires stay their declared purpose let alone their welcome all and messily the operative word is all be they roman napoleonic british or soviet all are vanquished not by superior power but by selfdelusion and geography the British Empire had neither the right nor the need to invade far flung parts of asia and africa it was defeated by them the us has claimed the right to intervene in theatres as diverse as south america the far East East Africa and a portfolio of Muslim States justification varies from retaliation and deterrence to selfdefense and the instilling of democracy again this is something that you and i have talked about for 10 years were saying its not just uniquely american its happened to every empire before and thats were just saying history usually repeats. You know they have their own sort of rhythm going on as they depreciate deplete their power via hubris they all get this point they all get this thing that they can use in new york fed were going to take your money were going to cut you off from swift germany you cant do that germany you know you might be an economic powerhouse but you know listen to us what we say goes you know they all end up like that its not uniquely you know antiamerican or just like it wouldnt have been anti you know poli onic or anti roman are anti british or into a soviet it was like this is just the inevitability of history it happens every single time for the exact same reason that i get what Simon Jenkins is saying there in terms of the history of empires and they never survive and they tend to crumble from within and i understand that the difference with the american empire of the 21st century is that its constructed entirely out of digits of algorithms out of debt creation out of money printing and the cost of increasing the debt indebtedness to our vassal states which every single country thats not america is right imagine if you were in the prison business and the cost of building the prisons i mean you could build prisons for everyone in the world because your cost is 0 americas built a prison called the world and its the prison its the it runs the prison and the cost of building that prison is 0 because its all based on everyone in the world is still willing to accept dollars trade in dollars a clear through the new york fed and worship the u. S. Dollar wherever you go youll find a. T. M. s in countries where as the local currency and dollars right dollar is god no matter what religion you say you are around the world the fact is you to pray to the u. S. Dollar every day every single empire has also looked like uniquely this time its different this time theyre also powerful nobody could stop room nobody could stop you know napoleon every everyone seems like that until they dont suddenly its usually suddenly. And then all that looking back its like all the signs were there and then i want to look at part of what youre saying here and this interesting chart that divergence of s. And p. 500 and u. S. Nominal g. D. P. Began in the age of Alan Greenspan any coincidence there used to be a relationship between the fundamentals of the noncon me g. D. P. Growth your actual production of goods and services your Wealth Creation and the stock market since greenspan and the intervention by the fed the activist fed who came in the greenspan put that you would never ever lose money if you just continued to believe in the s. And p. 500 because the fed would have your back well you see the divergence really take off that you know nominal g. D. P. Its just been the same slowly rising just like gold over the past few decades since Alan Greenspan but the s. And p. 500 has taken off doesnt care about earnings or anything like that you know because the g. D. P. Is based on consumption and tied to wages and earnings and Economic Activity and manufacturing and things like that are tangible the s. And p. Is based entirely on the ability to as zeros to your earnings statements based on the money thats being given to you by your king god the Federal Reserve bank and so there is no connection and there is no need as ive said before the 3 trillion dollars or so that are collected every year by Americas Internal Revenue Service to fund the budget is is not needed whatsoever they can simply print all the money they need its a token amount compared to the amount of they print 16 trillion and they collect 3 trillion in taxes its a non its done its a rounding error in the b. Needs of money well these 2 are required like the taxes make it feel real so if you didnt have to pay taxes like its all a Monopoly Game but it feels real especially if you might face tend to. 20 years in prison for not giving this money they must think its really important and really real its like gold that that that i think creates the helps them sustain this then money is not doesnt go toward increasing the wealth of the nation it goes toward increasing the incarceration of a nation thats pretty much went to as you said in the beginning you touched the world is our prison well ive done it again well were going to take a break and when we come back much more coming your way. The. Just one magic bullet you could actually come up with some of the top of these baby bonds talking about ways we get Access Capital in capitalism cavils important so we could actually have programs that actually help folks who want to do that but when you give everybody a 1000. 00 im a poor person im going to consume that and then youre rich youre going to invest that equity the wealth the spirit is going to grow because youre not using your money to consume your literally buy more crazy things and then my landlord knowing that i got a 1000. 00 you just go raise my rig so then you get your inflation going on and there. Isnt money. There was a time about what it was it was a bit. More about the. One with the more than the fact that both of them to. See in the car going to him but i mean before when i caught on to him but i. Am now moved on. Leave. Welcome back to the kaiser report imax keyser time now to turn to. Gold switzerland that com egon welcome back thank you max and a bit of a late happy new year to you right on your web site little piece called we just left the 20 tanned the stay decade a fantasy as you call it what is a saw about a decade a fantasy and whats coming up in the next decade the decade of fantasy once the deck was a decade the world managed to artificially all the worlds Central Banks to artificially. Patients who bought it for another 10 years which was absolutely a lot longer than i ever expected was possible but nevertheless by printing fake money by charging 0 or negative rates for it they fool the world who are up for another almost 10 years what actually was 10 years. Ago therefore we are at the peak of bubbles that we are at the bubbles. I think the twentys will not take until 29 like it did in the 1900000 till the whole system collapses i think it will happen a lot sooner. Will is likely to start this this year and any time now the risk is at a maximum. Things dont always turn when you expect to but it could happen it could happen this week or next week or it might take a bit longer but i dont i dont see these bubbles last in for much longer this is banned the story for a number of years as you point out weve been talking about this for 10 years that on a valuation basis on a price Earnings Base basis on historical basis the markets are over a value certainly the bond markets in a 300 air bubble in the. Not a kingdom its a 240 year high in the United States or bubble in the United States and yet there doesnt seem to be any end to this down during the 10 years i just talked about there the Federal Reserve bank in the us alone printed over 16 trillion dollars to keep the zombie banks and zombie corporations alive remember a lot of these corporations report no earnings at all theyre only kept alive through stock buybacks and cash infusions from the central bank but my question is i dont see that ending anytime soon because the Central Banks could very easily buy another 15 to try to 20 trillion dollars worth of bad assets they all Work Together that all the major Central Banks Work Together they dont theres no sense of competition in the world like David Ricardo talked about in during the 1st years of nail classic economics its all collusion theyre all buying horrible junk and theyre all working together and they have Printing Presses a so why with this and any time soon things dont always end when you expect them to and as we just said this bubble has been going on for 10 years you should have collapsed 2009 at the latest or 7 even if you didnt and you know the theory is very simple if you if you grow 2006 when the Grocery Store to world global debt was 125 trillion since then another 140 trillion has been printed so we are around 20665 true you know and remember all of that is just its bubbles its nothing to do with real money and that money has been invested into main in the stock market is not going into the real economy so then manufacture. Fake money and created fake well now ill long you think the world can continue to live on just scenario or on fake money and fake asses i think we are not a reach to point one that sheer weight of the debt will actually mean that this is dont call absent in the next it could be this year or include obviously will take a few years but that the start will be this year now while you call fundamentally argue that its going to happen now technically markets now and the stock market big stream evaluable are just yesterday. You know you are looking at a massive negative divergence on the new highs and the dow on the s. And p. For example new highs in the stock market is not confirmed by momentum indicators now that doesnt mean that it will turn immediately but that means that the market now is at a very very high level of risk and for it is likely to sometime in the near term future i dont think that Central Banks can continue the game of fake money fake assets you know lets remember that this is that theyre printed under the 40 trillion roughly in the last in the last was in 13 years by that and that has created the same fate as when i made a calculation in one of my articles to say that that extra. Money that they have printed which which is says that 19 hours is 2006 that extra money of about 70. 00 or lets say near 70 trillion. That equals 2 years oh and neil global output of actually every everybody in the world is 3000000 there are 3000000 workers in the world. Today was supposed to be 33000000000 workers in the world today and their output over 2 years equals the money printing that we have seen since 2006 so the world has just created 2 years of our foot by printing money and thats why im saying that is not sustainable that doesnt mean that either fundamentally it will collapse today or tomorrow but technically in my view marcus looks extremely vulnerable on the timing. The cycle set of that i look we could have. Talked in the market at any time now starting a downturn whether the downhill will be slow initially or whether it will start with a crash it doesnt matter risk is at a maximum and from our point of view our company we look at risk we dont look at the follow file of rise in the market and trying to catch that we look at protecting the downs of because the upside is maybe a few percent the downside is 95 percent in my view i think that go if we measure the stock market against real money which is gold because i think we are going to see the dow for example or the s. And p. Follow around 95. 00 at least against gold him and thats not that would only take it down to the level of the one. That is in the dow he was one down equals one gold just like he was in or one hour ago just like it was in 981. 00 gold was a 50 on the dow they did that was their racial 1. 00 to 1. 00 also that of the dow gold ratio i think were going to go down at least to one again and i think we probably go below one but going down just to one would mean a full 95 percent of the day against real money go and i think thats going to happen now i cant say exactly how well but i think the risk is that today and i think you know people should be protected today saw the staff called on the. Asters are suffering from this that i think all the investors are looking at this bubble really more out of curiosity because gold in fact says the air 2000 has outperform stocks gold in fact against every major currency in the world is making new all time highs except the us dollar Gold Investors are doing great thank you very much so i think they its more of a curiosity here because the stock market bubble fueled by all the money printing is really a once and no ones ever seen this before ever in the history of the world has there been so much injection of ersatz fake fee out money to support. Really companies that dont make any profits the companies that are going public dumb a cafe profits they have no hope of ever making profits a lot of the listed companies 60 percent of the list of companies are not making appreciable profits right so this is a profit less prosperity fed by all this money printing they have the nasdaq up 40 percent last year but it could be you know on the verge of war in these situations like 1909 where you do see a final blow off on the nasdaq another 85 percent jump in the nasdaq would be in keeping with the recent manias on your thoughts on that as we know market and extent that. We everything is possible but you know you have to remember max that the nasdaq is up 7 times since 2007 ton this is a bubble now we choose equal to the 2000 i did for cause at the time. That. You were in the almost just before the great and i think i can say is going to do more of course i can but i can say that the risk is not a level which is totally unacceptable and should be unacceptable for anyone. Most people will hang on just like they didnt do that was in 2002 while the nasdaq fell 90 over 90 percent so i see the people who now hang on i think theyre going to lose the biggest part of their fortune or at least a fortune on the wealth of avid stock market so im not you dont get catching that last bit you know i remember every x. But everyone in the world whether they were. Cattle station or gas station attendant or whether they were had threats or whether they were you know a wealthy person whatever everyone was an expert on the nasdaq in 1900 and everybody jumped on the bandwagon the last year and then they lost it all and that was in the next but to be found in 2001 or 2 when the market crashed and i think its not just sure you can have been i dont think is worth waiting for i think we are its imminent but i might be wrong i mean i dont care if it happens today or this week or next week or examples in 6 months time the risk is there and as you said you know the dow gold for example looked at the quarterly jump shot yesterday and the dow go on a quarterly basis has now turned down on the what is called m a z d which is a trending indicator you know thats a term that turned down is the 1st time in 9 years that hes turned ive been at going up since since 2010 and now is turned down that is a very strong sign that the stock markets now are in real time against gold going to turn down to see that to me is very significant so i think were there almost there and i dont really care if it goes up a bit because i certainly wouldnt recommend anyone to ride that but i know that all investors are in the market today theyre going to think that the fed is do just mentioned before it got fed and all the other Central Banks are going to continue to pump in money but i think the market will soon realize that this money you know this was theres no. Money make money that they print it is just it just creating fake and therefore the money in the us is a fake and thats what the world is going to be experiencing in the next few years that all of that money all of those fairly bad news i just going to disappear out of the market it will be for a lot of investors and theyll be in much the well destruction im not a person is just reading risk and im just reading the markets and hes inevitable that this will happen in my view while this moving average of the i may say days are fast ending i think we should talk about that and next segment if you can stay with us well do another segment thats going to do it for this edition of kaiser apart with me max kaiser and Stacey Everett like to thank our guests. Switzerland dot com if you want to reach us on twitter its kaiser important to like side by. You are no offense but you no longer a young woman in fact you are one of the last living survivors of the nazi. Im aware of it. Relieves redact all your life. And you can never forget. To be inhaled she would never believe what you meant to ask. For 3 years ago for the. Very best. For you. When i get out on the farm so you dont want to take my song to her next door so he can listen in hopefully bless her. Good food descriptions sound up to tell using even for the owners so how to choose the pet Food Industry is telling us what to feed our pets really more based on what they want to sell us than was necessarily good for the pet turns out pick food may not be associate missed people believe we have animals that have you know diabetes in arthritis they have auto immune disorders allergies we are actually creating these problems and its a huge of a demick of problems all of them i believe can be linked to fairy simple problem of diet and some dog owners so heartbreaking stories about their pets less treats the larger corporations are not very interested in proving or disproving the value of their food because theyre already making it a 1000000000. 00 on it and theres no reason to do that research. And. Wisdom is the output of the cold knowledge in a rope or your ways in novel cause its right if you learn a particular scenario being a class could be a variance and you encounter that exact same scenario knowing what to do is just memory thats not wisdom the thought learning its just memorizing some wisdom comes when you are facing a brain new context and you can draw upon the walls and floor of the other contexts systematically to know what to do. With. It. From the plus lead new source of why is because of the salaam to you or for me to do the focus all of us to do so he. Wanted to get what. You see in the book to tell most of us because. We dont let us. Know what it. Was. But to mark look. Up the dramatic scenes the french president has rushed out of a paris space under a hail of boos as furious protesters chanting mccrone resign trying to confront him. With. A russian Computer Program arrested in greece at washingtons request pleas for help claiming hes been tortured and denied his basic rights. And russia mark 77 years since the end of the siege of leningrad one of world war 2 his most appalling humanitarian disaster
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