Is right up there with us. I am asked kaiser this is the kaiser report lets start off with a quote from our board einstein here who once said that compound interest is the 8th wonder of the world he who understands it earns it he who doesnt pays it this is a remarkable quote from my stein and it has so much to do with todays stock market volatility and the coronavirus all working at the same time and showing what compound interest is all about or what exponential. Algorithmic expediency is up yet stacey whats up max were thinking exponentially in this episode a kaiser report during the exponential spread of the pandemic coronavirus were looking at the 2nd half of the chessboard as it is called and i want might want to add that today is my birthday so turning one year older in the midst of exponential pandemic which is hitting the mortality rates go exponential as you get older is not fun to turn a year older in the middle of a pandemic but before we get into the exponential growth of the pandemic lets look at the result of the exponential growth in debt over the past few decades chis report of course has been reporting on this non stop for the past 10 years and i want to look at these 2 charge is the 30 year treasury and the price of oil if you turn it upside down. You see the exponential its going exponential down 30 year treasury yield is well below a one percent oil price obviously wheat collapsed 30 percent on the opening on monday of this week the price of money whether its cash 2 year note 5 year no 10 year note 30 or no is approaching 0 so money has no value whatsoever gold d is hitting new all time highs in currencies everywhere in the world that will soon be hitting a new all time high against the u. S. Dollar because it is Holding Steady its all the great it started out at 1. 00 its now you know hovering between 7. 00 and 9000. 00 per because. You know this is the store of value the safe havens that people are going to run to when money becomes worthless and negative rates become the norm so money is worth less than nothing its worth less than the toilet paper people are hoarding as a matter of fact toilet paper percy is now worth more than a dollar per sheet in some instances people are paying 67080. 00 a roll for toilet paper that is an exponential growth in the price of a sheet of toilet paper paper that is indeed correct and of course i do want to remind you we are in the middle of a bit of a pandemic in which youre supposed to wash your hands all the time and not touch your face so please macs do not touch your face otherwise that clip will go viral you know everybody who touches their face goes viral i want to add because its my birthday max got me something even rarer than the gold ring youve got its the handsomest eyes or that is also in short supply so again that is tied to our hyper exponential growth in sort of globalization that happened for example it was in just one year that 95 percent of the capacity to produce facemasks medical masks met and personal Protection Equipment was exported to china it happened one year in the last 10 years so the. That was an exponential growth in the export of our jobs but now we are left helpless in the us so on top of that we have this exponential growth and debt that has left us very fragile the opposite of what nassim taleb would say is antifragile had we had the capacity for example to produce our own medical equipment our own medical supplies our own pharmaceuticals we dont have that so what we have is essentially a controlled planned central bank run economy and that is where everybody is looking for answers to a pandemic which is just bizarre in the past week before as this crisis was unfolding we saw the st louis fed president bollard says credibility of Central Banks seems to be eroding so comparing it again to 2008 and the 2008 crisis when we saw gold sell off by 30 percent over the course of 6 months i dont think were going to see that this time because as he points out rightly so i believe that the fed has lost credibility and there is nothing but faith in the sense of a currency world so i think Central Banks have been the biggest buyers of gold since 2008 so you have strong Hands Holding gold at the moment rather than those we cans of the hedge funds that had to sell off gold in order to meet margin positions back in 2008 so this is my instinct i could be wrong but this is what my instinct is telling me well you know people losing faith in Central Banks so Central Banks replaced every institution in society they replace the church they replace the schools they replace the markets with no price discovery and so its very this is part of the transformation of the Global Economy in particular the American Economy into whats called the American Market fundamentalism where its pure theocratic fanaticism believing in the sanctity of the central bank and now that disappear and now prices are finding a level. Well that reflects the true supply and demand of a genuine economy and those prices are going to be a lot different than what weve seen in the last 30 years its just bizarre to be in america and watch that this is a genuine fundamentalism everybody from the president to senators to congress to legislators everybodys expecting the fed to rescue the entire like to stop somehow a biological event a viral event that is spreading and killing people and i want to bring this back to because we have always been talking about the pandemic of money printing and the nonstop its exponential growth and that theres been an exponential growth in debt since 2008 mostly from china but also in the corporate sector in the United States especially the fracking and the energy sector. I suppose thats going to blow up rapidly but other sectors are going to blow up as well and whether or not we can print our way out of that i dont think so i think youll see intervention by the state with fiscal policies instead of monetary policies because no choice but in terms of the way markets can predict things we have this spooky event which was last summer june july when we interviewed royce a bog here and you know negative Interest Rates broke all laws of the physics of finance so we were asking him and hes a great thinker he runs full money and then a dot com and what he said that could possibly be the case is that. Negative rates were predicting a mass decline in population a mass extinction sort of event he didnt know whether it was going to be by choice people would just stop having children because it was too much debt for example or some sort of pandemic and its interesting that the markets the hive mind of the markets saw this coming like no matter how much humans think were above all other creatures on earth whether theyre insects that or the amazon rain forest or the creatures the 95 percent of species that we wiped off the face of the earth the fact is were still connected to them and we see we see this coming and we see that we have this 1000000000 year old instinct for survival and for whats coming so i think like where that herd stampeding or cross the serengeti there is the hierarchy theres only guy and guy is mother earth and its all one were all one all one living organism and humans started to behave as a cancer and so a guy is trying to push them out of the ecosystem and they can do this in 2 ways the one they have fears because which kills off the money and i believe the problem with money and Central Banks today is the presence of because which is the apex predator or in the universal cosmic economy and then coronaviruses just other obvious example of gaia depopulating planet earth the. Intuited this you know with negative Interest Rates and it brings us to the 3 d. S. Remember look at the economy using your 3 d. Goggles diggler bill is a sion d. Dollars ation d. Population i dont think it necessarily had to be that situation i dont think that was the obvious outcome of this but i think it was because of the exponential growth in debt that we had no choice in the us and we also were unfortunate have trump as president at a time where he only believes in the price of the stock market whatever that is and it must go up next the. At all costs the fed seems to believe that as well as do all of the bankers that they serve because we there wasnt any time the market started to correct even a little bit they had to intervene and you know all that exponential debt is also playing out in the you know the political sector because what exponential that is is not only did we have negative rates in which time had no value but exponential debt was stealing from the future and we got so far into the future now theyre trying to issue a 100 year bonds and thats like stealing generations that havent been born but at the moment where theyre the boomers are definitely colliding with generation z. And millennial is and you see that in the political space you know the choice between neoliberal status quo biden continue as it is and Bernie Sanders he wants to tear it out down and bring in basically redistribute the wealth or redistribute at least some of the risk and all that debt put it back on the Balance Sheet of the boomers from which it came but i think this is also that collision and in terms of political events you know hyper inflation is the most political event of all remember in 20082000 i report we covered everybody in the gold and money sector work saying well is it going to be inflation or deflation with all this money printing some a said it might be hyperinflation but there was never that doubt as bollard says you know that theres doubt now theres a lack of faith in the Central Banks looks as a fed has lost control 10 year u. S. Yields collapsed after fed 50 basis point emergency cut and its fed has ramped up Balance Sheet there you see when they tried to taper the ponzi scheme last year now theyre having to expand the Balance Sheet but at the same time again the hive mind the Bond Investors never believed that that was like if you turn it upside down that was exponential growth and basically the 10 year yield of the Central Banks of the cassar you know they approach it like a citadel and so theyre taking all that stuff into. The citadel and are not yet at the point where were declaring that they carry over Central Banks because they have the ability to expand their citadel exponentially and the boomer plague the coronavirus it targets 6070 and 80 year olds thats a way to pass on some hope to the Younger Generation also the boomers tend to hate bitcoin so here we have a pandemic of the corona virus and the pandemic of bitcoin all targeting the 6070 and 80 year olds thats trying to pass the baton on to a younger more enlightened generation i might add that. I mentioned his Organization System risk they say he says for a new 50 year olds they should all not go outside at all thats gaia floria of course hes 60 or so anyway stay tuned much more coming your way dont go away. No not ones that. Dont want. To finish and. Im back in the. South. Pacific. And then youre going to believe. Me think im. Right. One means i love just not enough. One tokyo plant it. Does work with because did it because he didnt seem critical. With the coronavirus now officially declared a pandemic the world faces the additional burden of an Oil Market Collapse this comes at a time when demand for crude was already low some are calling this the ultimate perfect storm how this all. Plays. Welcome back to the kaiser report imax keyser time now to turn to steve keen hes the author of the bunking economics hes got an amazing patriotic page at profess or profit steve kean where you can basically become a student for much cheaper than going to any university away on the universities are no good steve welcome back good to him actually i like the resume that i do like to share now lets talk coronavirus you recently wrote that we need to start thinking exponentially in order to can tain the coronavirus elaborate on this what does thinking exponentially look like steve well its essentially a great old analogy max that theres 2 of them want to do is imagine you go. Willy growing on a pond and it dials and saws every day and it gets to be coming out or sent on it will kill off the pot if you get to the stage that its 50 percent of the on how much love you got one more died so if you do a lie it you know its not big enough it will end with it without a loss for that is it will increase fire a factor of 6 saying and youll be overwhelmed and i want to remind knows that the king who has a mathematician to help him win a battle and he says ill give you anything you want and the bosses well i want this one granted ross on the 1st where the chess board 2 on the 2nd 4 on the eccentric cetera and by the time it can go so that this things square what he thinks he has a bogen he realizes discuss going to take over the entire kingdom so he hasnt bills thats whats going on with the friend of ours it doubles at the moment by the looks of things about every 5 to 7 days which means that they will be every way theyre fossils many cases so if theres they say if you get to the size were off the world is infected lets say 25. 00 weeks with 26. 00 everybodys got. And therefore you really have to move as always you can just slow down and even though it seems selfish to cite august i wife mother they told you by doing that you increase the doubling talk you make the government say one way to wage and that has an enormous difference on how long we have to react and we really have to increase doubling some of the order to wait to amount if we do that we might actually go to develop a vaccine before everybody gets that its interesting that you say people have difficulty in conceptualizing and a exponential way problem like this you know particularly interesting when you consider that for the past 25 years the entire Global Economy and the entire global stock market has been driven by social Media Companies that are driven by the socalled Network Effect which is the exponential of the network of the social media they refer to these things as growing like viruses and this is really defines our world is the Network Effect virus effect like growth of social media so then we get a biological virus and suddenly people get stupid theyre like i dont get it how can a double and how can a double in size every few days does i dont understand there seems to be a massive disconnect but anyway you have a plan steve kane to basically give everybody. A some money to stay home and stop the spread of the disease i believe this is already being done in places like china tell us more this is one case way that the capitalist system which works brilliantly when you try to end it i want to study the bios will break down because this simply know why the market system will function this through a period where you have to offload everybody but Something Like amounts and its particularly bad now because we have so many people on precarious contracts who have the lucky to have for 2 weeks of income they kind of for it not to be connected so for wakes we have people paying mortgages with a load of mortgage that Household Debt compared to what it was back at the time of the loss and then it which was back in the spanish flu in not tonight saying we have 4 times the level of Household Debt that at that stage so if we went says the title for iraq that none of this government donaldsons what would happen is the huge proportions of population to rent would file the pay their rent they would face eviction which would make the infection worse because theyd be on the straights and passing that those around you have a mortgage it would be most days they would be evicted from their houses the people who are the most withdraws would find that their debts are no longer worthwhile so they draw down their assets ought we can have a Financial Intelligence that makes the coronavirus us and in that situation a policy that i have put forward about a decade ago to say we usually run as of the 2000 that financial crisis what are called a moment debt aaa that i think is now i never thought that the nation has this thing admitted but i think now because we have this intentional one month reich which we need to start with are simply that one month reich would have to be cut by government giving money to everybody to say is enough cash to pay you rent by. In mortgage Small Businesses not just all when they when they go i just miss the restaurants bring in obvious example and. Created money and get your goodies back asked what francis well coles people spot as head of easing thats what we need to get over this process if we dont do it then the financial effects may be as devastating as it is itself right now you make an instant point there we are witnessing central bankers and leaders of the i. M. F. And financiers and People Associated with wall street go on television and talk about ways to curb the coronavirus by printing money for them by bailing them out by giving them more quantitative easing by lowering Interest Rates around the world as we saw at the fed the fed a statement in at the treasury the United States says were going to fight coronavirus by job owning jay powell at the Federal Reserve to cut Interest Rates by 500 basis points and to your point. That money could go toward. Having people stay at home which would actually curb the virus by giving bankers more money and by the way during these press conferences theyre touching their face theyre blowing their nose theyre spreading the virus during the press conference asked begging for more of bell out money when they could just give money to people and stop the spread of coronavirus you know this is like 2008 as you said back then there could have been a quantitative easing for the people bell out the debtors instead of the creditors and here we are again in 2020 instead of bailing out the people that are sick by keeping them home the response by the kleptocrats is going to big hey lets give more money to jamie diamond again isnt there a connection cant you say that the malfeasance and poor judgment of bailing out the banks in 2008 actually led to the rise of coronavirus by. Instituting malinvestment around the world and now we have the result of that theyve gained i wouldnt blame us on q. And a i wouldnt blame it on Global Warming and Climate Change a that want to blame it on the thing that coast Climate Change and thats it human pressure putting on the environment because that is by preparing locals to us doing this Global Warming now with the same recent studies saying that the the the mass of animals on the planet all that mass 90 percent of them are either humans or animals that humans very upset h. And o. Use it in a lot of oceans so with might associate because they pose for a pathogen by putting too much of a strain on the planet theres no red it is no why that of ours is going to survive and prosper by infecting toggles because were watching that theyre dying out of us dying out on this guys the place for a host of the vote is humanity now it isnt and again with what ive seen to a sustained practice is yet another ineffective policy by people who are in shock and out of the sand a system they run and that was it was just an accent because the money from kuwait which is about a trillion dollars e. A. M. Drilled into the a real economy maybe about 100000000000. 00 a year through into the salaries and bonuses the finance sector so that land will gain is that just a claim as i got to play in the mental game is it cetera et cetera so it was a trivial and analysts trivial amount of a lodge amount that fit inderal economy guy to some growth but massively inflated asset process that set us up for a problem now because they Balance Sheets of banks into the interests of companies late on the value of the stock market which if this keeps on going the profit of ours it will plunge that may banks might go bankrupt because that balance a copy propped up by the fed reserve enable so you really have to sayto throughout the infected by. States give money to the people directly which is what an a to get through the one month which are not oss marcion that has. Allowed companies to go bankrupt and still function because we caught in forcing all rules of the market right now and directly by ship is the same why the Japanese Central bank has been doing for some time by those who support the market rather than giving the money to the finance sector in the hope of the shares because at some point they want all pocket the money and run and theyre going to have a lot without an engine and the japanese Central Banks on 70 percent of the stock market thats it a situation of having a stock market crash a financial sally got the Payment System writing down and i see that we end up not in max foster territory we end up in mad max territory just to follow up on my comment about 2008 because it plays into later talking about environmental pressures lead to coronavirus going back to 2008 the bailout of the creditors that destroyed market signals that destroyed the ability for the market to communicate through price signals where net effectively allocate funds in that case it would have bent toward fighting environmental pressures but that never happened hence we had to run a virus but let me ask you about the supply chain just in time globalization has left us helpless in the face of shortages of things like face masks what should be the response there steve this is a real problem of modern capitalism the last time we had this process which are spanish flu that in the end of this the end of the 1st world war back in those days there were imports and their exports but you didnt have to buy in the modern mass of imports to produce what youre producing in most countries the supply chain was very sure the manufacturing system was just off of the invention about it the invention of the model say for that and the beginning of the production line and back in those days what you have is enormous stocks at saw the factory which we were slow use for the manufacturing so you have huge profit. Now with gone with the damning brought in the unit remarkable i different proving manufacturing quality go to the just in time system but what it means is youre incredibly bendable on precisely time deliveries that you dont hold any stocks and on top of that american capitalism since the not in a. Z. Has been taking advantage of cheap labor cheaply in shiner of course and really cutting production to world countries so theyre going to thing lobby i have a life and im going to damn it the offer of an American Products is made in about 30 countries most of which is china now if you can no longer transport goods because very sensible raisins saemon will refuse to board ships where theyre going to be stuck in confined spaces with 5000 people want to have the virus well its time to get to the other side theyre all going to have the virus some of them a good deal. And other going on a drastic drop in crashing into the into the wall on the line because that happens dead in that situation the supply chain breaks down completely and manufacturing can say such it isnt just that china at will start manufacturing because its current doing its own people that will face or to the american Production System and make was out be produced as well so this is a classic indication of what the same to late goals the fragility of modern society was on a society which was going to be working smoothly and therefore its file system any for jodi and were going to see the impact of that and i doubt anything goes any way around that we are going to see it right down the supply chain steve cain thanks so much for being on the guys report thank you max tried to talk necessary its a terrible topic but lets get what out and well thats going to do it for this episode of the kaiser report with me max kaiser and stacy herman i want to thank our guests dave came check out his patron at page 3 on dot com for profit steve king homeschool yourself. Get smart and so next time max kaiser Stacy Herbert saying by all and check us out on twitter as kaiser report. We have to realize we are all living on a small fragile spaceship together and its really no different than a bunch of people in a harsh environment trying to and rely on each other to survive we we are interconnected on this planet we rely on each other to do or around the world to survive as a species. Something seemed wrong. Just dont hold. Me. Yet to stamp out this day to come as a kid and in detroit equals betrayal. When so many find themselves worlds apart we choose to look for common ground. No. No no. But trying to. Say to me. And then yesterday when you. And your you know enough for you guys have. Done. With. The dancing video. This morning this is when they deal with