Oh max kaiser this is the kaiser report boy weve got a shocking story involving a french guy bernard arno oh man during all of this they say well bernard know you know he owns f. E. M. A. Traces luxury goods they do louis v. Tahn and all these other Luxury Brands out of france i remember a few years ago a noted on burn down he was so generous and gave billions of dollars i want to look at this notion of these billionaires increasingly showering us deplorable zz with their benevolent large yes right because bezos also recently hes now worth 130000000000 he recently gave 10000000000 he says towards Climate Change a few years ago about a decade ago it was mike it was microsofts bill gates and Warren Buffett who were then worth about 40 to 60000000000 and they said were going to give all of our wealth away to charity now theyre each worth over 100000000000 and this is the process that were always talking about about the cantillon effect all the money printing is going to these billionaires directly so were going to show you how the cantillon effect is not only help the billionaires but now the Central Banks are directly intervening and gifting these billionaires this money the e. C. B. Bots l v m h bonds to finance tiffany acquisition are no is one of the richest men in the world e. C. Bees q eat as nuts sold some bonds and apparently the e. C. B. Is in the Corporate Bond market just like janet yellen as we mentioned last episode is planning on that or suggests that the Us Federal Reserve does that eventually they change the laws so that the Federal Reserve can buy Corporate Bonds well 2 of the 5 euro traunch as were placed at negative yields meaning investors are paying a single a rated l v m h to borrow money thanks to the e. C. B. I mean this is. Really the endgame because you had a period in Global Finance where banks got in trouble you know in 2008 they may horrible loans and they were insolvent they became technically insolvent so the Central Banks got together and they said lets lower Interest Rates down artificially to near 0 so that banks can borrow unlimited amount of money at 0 percent Interest Rate and recapitalize themselves on paper over all the mistakes and it made a lot of billionaires as you mentioned jeff bezos bill gates Michael Bloomberg say made like a 40 or 50000000000 in the last 10 years based entirely on money printing from the fed and his relationship to the new york fed so now we are in 2020 and bernard are no of a luxury brand wants to so more high priced trent gets to his billionaire friends who have been given billions of dollars so he took the money from the European Central bank that has near 0 percent Interest Rates that bail out the banks and he took that to acquire tiffany so that he can so more high priced truck as to his billionaire friends even a negative Interest Rate so that means that people who have money in pension accounts people who have money in savings are actually digging into their pockets because their savings rate their pension accounts are now yielding close to 0 or negative theyre taking money out of their pockets thanks to the central bankers and theyre giving it to a billionaire so they can buy tiffany so they can sell trinkets to more billionaires this is louis the 16th i believe living off the a labor of the peasants forget about the global insurrection against banker occupation lets talk about a basic global peasant uprising the french revolution was open ultimately started not only because of the enlightenment ideas but because the king opened his books to the people and the people had did not have the imagination to understand just how much money and luxury asli these these the royal family that they were financing how how how luxury as their lives were so again the same thing with with this. When you realize like most people will focus on just what the cable news will tell them the cable news will tell them that our no is so generous and hes giving money toward notre dumb bezos is so generous hes giving 10000000000 to Climate Change he cares about you people same with bill gates and Warren Buffett they wont talk about the systemic structure they wont talk about the cantillon effects they wont talk about the Central Banks giving them trillions of dollars of which they benevolently give you some a few peanuts Mike Bloomberg he went from being worth 3000000000. 00 in 2008 to worth 60000000000. 00 now i think he was worth 57000000000 when he started running for president for the nomination and now hes were 62000000000 i think i see in the last thing so he hes going to give 2000000000 back to the Creative Class to make as for his no doubt doomed campaign but theyll be happy now theyll be generous with him in the future when theyre running offices or think tanks or Political Office and they think like well we should get somebody to help these poor people with Food Stamp Program well give it to Mike Bloomberg will have a trillion and if he gives 50000000000 of it to the people itll look so good i mean thats an exe an exaggeration but this is the sort of this is what canton effect does for psychological warfare because you know people can get over paying in fear but its hard to get over shame so what these billionaires are doing to people is that they are trying to get them to feel ashamed that theyre not rich like them and this psychologically has a very dilatory a suspect in that it creates self loathing and we see other varicose with the thousands of opiate overdoses these are this is the result of the console effect that might bloomberg these encouraging people to take opiates until they are dead if youre in a room of 100 people that is the nation. And the Central Bank Gives you max kaiser gives you 100. 00 to every dollar you give everybody else you no matter what will psychologically come up with an ideology and some think tanks to support your ideology to why you deserve this uniquely its just its just a process of human nature everything around us as human nature but we can change it we can alter the course of this we dont have to continue to give these people money and hope that they trickle down to us i was looking at a story so this pandemic hitting around the world d and of course there will be vulnerable nations i would include the United States in that because of our Health Care System and how expensive it is but the world bank a few years ago when ebola was going on introduce this notion of a pandemic beyond there is a corona virus pandemic bond which should theoretically pay out 250000000. 00 when this pandemic hits but its not yet a pandemic and not enough people have died and the bankers were able to set the terms of when this pays out and its almost impossible to reach the world bank has paid 115000000. 00 in premiums and banking fees for this bond that probably wont pay out and but they come up with these elaborate schemes always the elaborate schemes always give wall street or bankers or the elite more money you know its all about fees on for products that never pay out we saw the gold inside straight and many many products that all failed they even made bets against their own customers who took their own products because they knew they would fail before the us Healthcare System and they get the fees they get the fees but to your point look i understand what youre saying that if you give 100. 00 people or a few people excess of killings of dollars i mean you cant blame those people for taking that free money what im saying is what stops a peasant revolt and what stops the peasants from revolting is toxic shame that comes with the money from the central bank because they put up a message to folks there m s n b c and c. N. N. That if youre not down with the billionaires its because youre a shameful individual thats very hard psychologically to deal. Max and i have this unique ability to observe the world outside of a partisan sort of nationalistic bent and just look at the facts and the data and say this doesnt make any sense and. About maybe 78 years ago we started looking at fracking and saying this doesnt make any sense they seem to be losing money over and over and as we keep on reporting over the years the losses could greater and greater and fracking investors are losing money. Mostly Pension Funds buying their bonds stockholders of course in the these companies are down 90 percent those are different class of investors those chumps lost and however fracking continues and continues so heres a paper out of finland from the government backed research and they found that Government Agency warns Global Oil Industry is on the brink of a meltdown they found that we are not running out of oil theres plenty of it but that its having to go to extremes to extract it whether deep deep water or fracking and what they Peer Reviewed report calls for the European Commission to consider oil as the worlds most important critical raw material despite offering a scathing critique of the conventual Peak Oil Theory the report arrives at the shock conclusion that the economic viability of the entire Global Oil Market could come undone within the next few years so they point out that fracking has like yes provided some oil but its created the delusion that this is continue this could be possible to continue and the credit only quantitative easing and free money i fracking can only continue if the money keeps some pouring for free and if the money keeps pouring for free we have all these distortions like the stock market bubbles like these generous billionaires who get wealthier and wealthier and wealthier and wealthier and told the entire system becomes so fragile that it falls apart once again the Global Economy of the Global Oil Industry is mimicking soviet union. Remember in soviet union it wasnt about doing something economically it was about just delivering units more units give us more units and then well figure out the economics someday and then they went bankrupt so here the oil industry is saying we dont care that fracking doesnt make any money we dont care that its actually more energy and more energy out were just want units we want to deliver barrels we want to be able to show that we have more barrels of saudi arabia until that day when they say oh by the way its collapsed so this is a global collapse thats now baked into the cake the soviet union already been there thats why theyre positioned probably better than anyone right now russia to deal with the global collapse because theyve been working post collapse already unlike america has to go through its collapse now unfortunately but thats part of growing up now there is a book called the empire of debt and this is part of what is going on here with this story is that its the economy our economy of the us dollar since 97. 00 you want to structured around debt so that is always the answer is just printing more and more debt and eventually. We run out of the capacity to pull forward the real world consumption that is starting to hit all over the world whether sees viruses or antarctica melting or things like that so we see what they say is the plateau ing of conventional crude Oil Production in january 2005 was one of the triggers of events leading to the 2008 Global Financial crash according to the report as debt built up in the subprime mortgage sector the crude oil plateau drove up the Underlying Energy costs for the entire economy making that debt more difficult to repay and eventually resulting in catastrophic defaults they report warns that unresolved dynamics of the Global Energy system are only temporary relieved due to quantitative easing the creation of new money by Central Banks correction is now overdue and warrants and like what you talked about with jim councilor in the 2nd half is this magical thinking that allows us. A situation where we dont even try to come up with alternatives because theres always more debt we think to keep on adding and adding and the debt seems to work theres no fiscal policy theres no industrial policy theres no environmental policy theres no long term policy we dont do any long term planning we have to think more and more to the nanosecond because thats the only thing we can control and we cant think about tomorrow we can think about the next say weve gone the opposite of Scarlett Ohara theres never tomorrow like dont think about tomorrow well as mark famously said now now now all right were going to take a break and when we come back much more coming your way. And the only. System of. Action or anyone knowing. And theres no known she knew not. All of the mochrie to. Last night and most of that yeah it was about today only. At large. That im going to. Even. Give the nod now to you. What the how do we. Know do you need the whole corn to go forward. Well i would not and you know all that and i think she was just an honest one. Welcome back to the kaiser report time now to go to jim counsellor now he is the author of a new book called living in the long emergency its a follow up to his smash hit the long emergency published in 2005 the book will be available in march jan consular welcome back a pleasure to be with you max and stacey so weve been talking to you for a while and you have a said you a sleigh and accurately predicted all of the chaos and mayhem that we are currently living in unfortunately have been absolutely correct now before we get to your book lets talk about the coronavirus its cutting off supply chains turns out theres a great deal of our medical supplies are made in china so theres a shortage of medical masks in the u. S. Hospitals is this part of one long just in time globalized emergency jim well it sure doesnt look good you know i got an email from a lady i correspond with up in toronto actually and shes actually a great military and naval analyst for you know someone whos just a basically a canadian grandmother but shes very concerned about her family and. Theyre trying to lay an insulin supplies and insulin out there is only like 35. 00 a month insulin down here is a lot more expensive. You know we have no idea whats going to happen with that whole scene with the supply chain seeing but the most interesting feature of all that at the moment is that theres no chatter about that in the media or the news its like just another day at the beach for america you know we dont seem really that concerned about it its interesting that they outsourcing of jobs and manufacturing to china has led america into this illusion that there is no inflation but once they supply lines get cut suddenly things that people are thinking are worth are buying a 0. 10 on the dollar so they skyrocket and were going to see some of that i think now the subtitle of your new book is called the Global Crisis the failure of the futurists and the early adopters who are. Showing us the way forward so lets start with the future as the future is a failed why they failed well mostly because they think that the future is going to be a continuation of what were doing now you know i came from a place where i was studying the growth and development of cities and writing a lot about cities and suburbs 2025 years ago and im still involved in that area and you know youve got people like ed glaeser at harvard you know who are saying that well just our cities are just going to continue to be bigger and higher denser larger you know more spread out with more of the worlds population in them you know i think that ideas like that are pretty. Out of scale with reality and that in fact you know were going to see our cities contract substantially this scale of them is going to have to get much smaller it is going to have to be consistent with the resource and capital realities of the future and you know people like that dont see it at all just like people today have no idea what will happen when supply chains start to break down and we really cant put anything together anymore you know whether its you know parts for our hydroelectric dams or the electric grid our you know all the motors that are running everything in america you know just about anything you can think of yeah i see that you have a little pet gecko there maybe i do for the folks at home i want to see that all right. Here you know this is one of my ornaments in the in the office well and this happens to be easy to the Democratic Party are. So lets talk about take oil for a 2nd so this is got to be something that would have your name all over because you were talking about this for a while ago and really laying out that the case for this and the problem the peak oil story is not necessarily that their world is running out of oil its that the world is running out of oil that is affordable to drill and this was put aside for a few years with the fracking explosion but now its very much back on the table you know that was the subject of their book the long emergency of public 15 years ago so quantitative easing and 0 percent Interest Rates helped keep this fracking boom going and extended the life of oil but it looks like now way are at the point im seeing more and more headlines to the effect that the cost of Energy Extraction and fossil fuel extraction is now at the point where its were looking at a complete and complete breakdown what was the current status there we went through this 10 year period and thats a long period and people really got to get their minds right about it because you know for 10 years theyve kind of been sandbagged and guess lighted about the Energy Situation the bottom line is we spent 10 years proving that shell oil is an unprofitable business that the Shale Oil Producers cant make a buck producing shell oil and the this stunt worked it was a financial stunt you know the whole thing was based on. A lot of low interest lending and the problem is now that theyve demonstrated they can make any money theyre not going to get more lending in the future to continue. Operations that theyre theyre doing and they have to keep them going incessantly because the depletion profiles of the wells is so steep you know its way different from the old conventional oil that oil you know cost about 4 100000. 00 per well in todays dollars for the old you know texas 150. 00 well and it produced for 30 years and it produced thousands of barrels a day and the new shell oil cost between 6 and 12000000. 00 per well yet it produces maybe a little more than 100. 00 barrels a day for the 1st year and then it goes down by 60 percent and after 3 years its gone so the whole thing was really a fabulous financial stunt that really messed with the minds of america and were going to wake up very shortly to find out that you know that the Shell Oil Companies are going out of business and that were not going to be able to maintain this level of production i have to add finally that it was a fantastic stunt you know they produced a lot of oil i meant it was for real didnt happen to be great oil it was a particular kind of ultra light oil didnt have a lot of diesel or Aviation Fuel in it but you know we produced a lot of it and it was a very steep journey up that new peak probably going to be a pretty steep journey back to where they have their 5 debt right because they say that debt is not to worry about it that you can incur as much stat you know that maxed out deference pa krugman at the New York Times says well its only debt that we owe ourselves it doesnt same to think that future generations matter they in other words some kind of debt assistant genocide oh my god is something wrong no i think youre right because what weve essentially been doing is buying tons of money from the future in order to run America Today you know in order to run Walt Disney World the interstate highway system suburbia has superball and. Military you know weve been buying from all the generations to come and were you know were not to be able to pay that money back and theyre going to be stuck with you know the debt doesnt go away in one way or another its going to theres going to be a work out and the worked out will probably be in the form of a much poorer society in the decades ahead so lets just chat a little bit more about those coronavirus and its implications on the economy we know that biologically and the health in a considerations are quite dire but on the economy when you have china going through what is going through now they the response so far Major Economies around the world have said yes we believe coronavirus is a threat so were going to print more money and apple has said yes our supply lines will be cut but were going to buy back more of our stock some other words or seem to be a disconnect between human life and stock price like they have tim cook at apple he doesnt seem to think that. His idea of being humane is to install more suicide nets at the slave camps in china right he doesnt the same to all the stock prices going up because you look at mit more a financial fraud and the people like the debt dont matter it seems to be an incredible disconnect between human life and stock price jim you know the distortions in perversions that have been introduced into. Financial and Banking System in the last 20 years or so extreme that its now its no surprise that theyve just produced a lot of disorder not only in the Banking System itself and in the whole infrastructure of lending and paying money back but you know this is sort of bled over into our moral system in our value system and you know that its tremendously disorderly what. I think people also ought to keep in mind that many of the political disorders of the moment you know the the insanity the democrat. Atic party and by the way im still a registered democrat the insanity of the Democratic Party and you know whatever mr trump represents is also kind of a manifestation all of these disorders and as far as the virus goes i think one thing were not planning on is it looks to me like we are on a direct course for the virus to develop into a problem outside of china and possibly in the United States around the time of this summer and fall when we had the nominating conventions and the election and im beginning to wonder if were going to be able to hold the conventions you know people are not going to want to get on airplanes theyre not going to want to be in a big hall with 5000 other people breathing the same air and i wonder if we can hold an election if there are some kind of quarantines in effect and that might sound kind of extreme but you know we got to think about that now you know before it happens rather than you know 3 and a half days before it happens you know its interesting these democrats are going into meltdown theyre still grieving over the loss hillary suffered twice 16 and we can look at the 7 stages of grief one of them i think as a 2nd or 3rd has to do with bargaining so the democrats saying that to be bargaining with bloomberg like we lost to a billionaire all of our son now were going to bargain with us all the billionaire all dark right and theyre just going through the 7 stages of grief maybe they should just get over it and start thinking of some policies you know you mentioned also the early adaptors showing us the way forward give us some examples of who an adapter would be and how they are showing us the way forward the middle of my book is a set of profiles of about 7 individuals who are leading alternative lives and making alternative careers for themselves some of them are kind of strange you know i actually interviewed a White Nationalist because its out there and i thought that people. Ought to be and would be interested in seeing what it what thats about really and what it represents i interviewed a guy whos a distiller up in vermont who dropped out of Corporate America to buy a farm grow his own grain and make just old spirits and raise a family so hes leading an alternate existence is. A wonderfully brave woman up in vermont in up in the med river ski area who has been running a an artisan bakery for the last 10 years or so 20 years actually i think if you include her adventures in new york states and theres. A black intellectual living in the baltimore ghetto i wrote about these are all interesting figures you know homesteaders. Silva cultural lists people who believe that we should be growing a lot more tree crops than grains. You know its kind of an odd selection of people who have encountered and really confronted the disorders that we face and made some interesting choices sounds fascinating at sonic a good rate jam concert thanks so much for being on the kaiser reports a pleasure to visit with you always and thats going to do it for this edition of the kaiser report with a max keiser and Stacy Herbert want to thank our guests jim constant hes got a new book out eat gotta check it out living in the long emergence a if you want to catch us on twitter its kaiser reported by. Lead. The nominated actress in order to name a selection. And none of mr other me and you know nanae buried him on this im going to work on it this young. Frenchman. Surely cant. Suppose. The other how can i tell you. So when i think
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