A hallmark of deflation why was it why is it what why did this happen because of money printing because the money printing gave a lot of cash to the worst actors in the economy the zombie banks pushed out all productive economy and we end up now with an official postmortem to what started in 20082008 was the Global Financial crisis this is part 2 and this is the death you and i were reporting 2007200820 extension 09 through the entirety of the financial crash we started at Something Like 5 and a half percent Interest Rates at the fed so they were able to cut rapidly once bear stearns collapse in march of 2008 remember they did a 75 basis point emergency on the sunday night also Central Banks were coordinating and working together we were not yet in the process of rapid declination this time we are in a process have his ation so though. Gold is very volatile i think youre going to see more Central Banks start to try to accumulate whatever is available for this post crash whatever is going to happen its going to look very different so nobody could genuinely predict what what might happen but i think structurally our economies will have to change in some ways itll be better because jobs will have to be brought back to the u. S. Because of this decomposition and because of the exposure that we were exposed as being very fragile that our economy was held hostage by the fact that we werent able to manufacture personal Protection Equipment example for the Health Care Workers well the 3 days right put on your 3 goggles those 3 days are to globalization the dollar is ation the population and weve been talking about this stuff for a couple of years and the idea that the Central Banks around the world going to start buying more of gold i think they would love to buy more gold now but theres very little to quit or be out there is going to be difficult to buy gold the question is now that the music a stopped whos got the gold and of the last 510 years we know 2 big players have been accumulating hundreds and hundreds of tons of gold and that would be china and russia and when the gold held by some European Countries and the i. M. F. Theyve got equal gold to what the u. S. Has so now weve got gold parity and weve got the ability now to rework the world currency order a new Bretton Woods theyve got to go back to gold as they always do i dont think the us has a particularly strong hand this time but well see again looking at 1929 s. And p. 501029 analog update it is tracking it looks a lot like 1929 and of course after 1929 we had years and years of just tedious side weight ness and long depression i do want to point out that you and i have also been talking about the intergenerational warfare the boomers versus the millennialism generations e. This could see for example. A lot of boomers have to stay in the work force for the next 1015 years beyond what they were expecting if their for a one k. s are wiped out just as theyre getting ready to retire because the youngest of the boomers are only 5960 at the moment so you know they still have 5 years before they can collect medicare and if this crash mirrors what we saw in 2008 then were going to see a 40 percent 45 percent decline if its nearing 1029 then were going to see 80 percent decline how long it stays there however is one thing of course weve never had such an activist central bank but i dont think thats going to be enough i think youre going to see very extraordinary fiscal responses this time so to put this in perspective perspective right you have the 1929 crash which was followed by the depression. You had a massive recession in the 1970 s. Due to the oil shock oil price that time screamed higher and caused a major recession then in 2008 we had the sub prime crisis and that was considered to be the greatest crisis sense the depression and thats how they build this 750000000000. 00 tarp bailout which became closer to 17 trillion dollars what it was all said and done now in 2020 we have what would be historically considered one of the greatest financial crises of the past 150 years and where does it fall into the category where how do you classify it i think were going to see a global depression and to your point how quickly do we get out of it the activist fed the problem there is their prescription thus far have caused the problem so theyre actually the problem there needs to fed the Central Banks need to be removed from the equation because they are the problem i think the Central Banks will be removed and thats something well see over the next few years however we also are in the process of deed lobel is a sham and of course trump is calling. Foreign virus or the chinese virus or the china virus of the one hand virus so lets turn to what this could mean for china this whole day globalization process as i said you know the Central Banks and the governments are no longer working together and especially in the west so when we saw italy start to really enter their crisis and pandemic mode and they had to shut down the entire country this was an interesting situation china is emerging as a Global Public goods provider as the us proves unable and unwilling to lead this is an Important Development and if the trend continues its one with potentially serious consequences for the u. S. Role in the world and he was responding to another tweet which was fax with data about what china was doing to help italy out remember all these other countries like france and germany shut down their borders to italy they wouldnt allow any. Personal Protection Equipment medical mask or anything like that to go to italy because they wanted to preserve it for their own country and a call between 2 Foreign Ministers china agreed to supply italy with 1000 ventilators and 2000000 masks additionally they are donating 100000 respirators 20000 protective suits and 50000 test kits as part of a massive aid package all right well this is interesting because remember when Trump Took Office c. Was very condescending toward the notion of globalization and very condescending toward all global type of organizations like the United Nations the socalled globalists or the end of may at the same time the leadership in china made a very strong statement saying we are pro globalization we believe in globalization and now 2020 the crisis hits. 2 different schools of thought are in play so america is becoming insular and theyre saying no no we dont believe in globalization risk like were just going to. Our borders and china is thinking well the only way we can grow is if we have a globalized world because were a huge export market and we need export markets to export to similar thinking was in place after world war 2 during the Marshall Plan right america resuscitative europe well yeah it was a nice thing to do but it created a market to sell to and it created a debt market to buy into and sell to and so i think china is thinking more in those terms this happens with the collapse of every empire thats a period of de globalization and then a period of hyper globalization follows as the new superpower empire takes over so the brits when they started to lose their empire they were against free trade and and were all for shutting their borders and contracting and taking what power they have left internally the u. S. Is doing the same i think in the long run i think itll be better for most workers i think because well have to produce our own stuff here so i think itll be better for us in the long term and we can just remove some of our hundreds of military bases overseas and start instead deploying those resources here domestically i think i could be wrong but i think thats going to be the better thing for us at this moment because we went too far in that other direction and sent all our wealth overseas and then heres a tweet this was from about a week ago but it got overlooked in all the other news of the chaos in the markets china Just Announced a 25. 00 trillion dollar room in b. Which is 3. 00 trillion u. S. Dollar plan on Infrastructure Investment yes trillions of dollars into sectors as 5 g. Electric vehicles Cloud ComputingSmart Manufacturing and internet of things as we just discussed you know the u. S. Is retreating that china is planning on expanding and that they go into this as the strongest player they do have a lot of corporate debt and debts as well so i dont know how theyll end up working that out but thats for the next few years to do. Side right there obviously you know gambling for the future and you made an instant point about workers and doesnt benefit workers so looking way back looking from a 1000 years back youd have to go back to the plague years in europe to find something that was equally beneficial to workers you know because of the plague and because so much of the population in europe was wiped out by the plague service at that time for the 1st time out of the go shading ability to and this was the beginning really of the middle class where serfs suddenly could negotiate it was like a massive strike so no workers were available and they had to bid higher for that so in the last few moments here i just want to say that theres another trend that goes with this day globalization and globalization because it is always a volatile period throughout history and i think you and i identified very early on you coined a phrase giago global insurrection against banker occupation because the us is an empire of debt and i think that was what youre seeing and the economist even picked it up now a new Study Suggests the number of mass protests globally has increased by 11. 5 percent per year on average since 2009 thats when exactly when kaiser report started and its been going up 11 and a half percent a year and its also exactly one big point started there for the 1st time in history individuals can be individually sovereign by separating the state from money thats never ever ever been done ever separating the state from money and that fuels the global insurrection against banker occupation anyway were going to take a break and when we come back much more coming your way. A fairly significant portion look at all the little. Ones and use new york at the salon in china style and shirtless to achieve a quick look or feel and i mean with these full bore for your program or now dont i do it and then go for push when i will push yourself or the show going to get us no. Good answers and. If you ask. Welcome back to the kaiser report on my faster time how to get a job ribena Dollar Collapse dot com john welcome back to matts good to be back the fed has injected at least 1. 5 trillion dollars into markets just in the past week here thought this is the most eventful couple of weeks in financial history thats about but i think more is coming its going to be more eventful Going Forward and you know were other than the fact that its a pandemic popping this bubble were following the script pretty well in which we have a gigantic financial crisis because all the debt were taken on and then the Central Banks of the world react by basically letting the system with cash and bailing out everybody in sight and thats the stage were at now where. They know they needa shaka know right now because they know that the Global Financial system and the government actually system are shutting down so while its not clear that there are any financial tools that 6 a pandemic. Is still going to try because the only tools they have are easy money so you know that in the last week or so there are big Conference Calls all over the world with central bankers and prime ministers and president s talking to each other about you know what theyve got to do how big the number house to calm things and so thats what theyre trying to figure out maybe start small with the bed cutting the fed funds rate by 50 basis points and now theyre into q. E. Theyre adding you know huge amounts quickly to the system and well see if that works i suspect not yet but were going to reach a point where the numbers are going to be astounding and the stuff theyre doing will be just experimental to me like were going to have to buy equities in the u. S. Sure but you bet has been doing for a while now but on a much bigger scale so this story Going Forward is going to be Central Banks doing more and more amazing. Basically until either we fix quarter the system and go back to normal growth or the world the occurrences of collapse. You know the end gave it is that collapse in n. P. R. Currency values because we created so much money and everybody figures out that its the policy of their government to make their currency were less and less every year and they just bail on the currency which is the cost or in school of economics practice so were heading for the question is it do we get it this time around or do we thought somehow. So either way to buy ourselves im never. You know i think i dont think we could do it its 2000 thats not right but that was the end of the system so im not a you know a good source of predictions about whether this works or not but it doesnt feel like we could work i mean the numbers are just too crazy and and the numbers are going to get through here so well see it but you know were living through from a finance geek standpoint the most interesting time because as you know. History books a century from now are going to devote chapters whats going on right now because this is so amazing and potentially so destructive so i think for the only purpose its going to be for. The absolutely terrifying one where lay said 2 things there that i want to focus on one you said this is a debt crisis and they also said that were going to expect the Central Banks to try all kinds of new things ive never seen before and thats been the story since 1907 and the ballad of austrade after the crash of 87 when Alan Greenspan gave a green light for the plunge Protection Team but to my question john and that the Central Banks can try all kinds of new things new Financial Engineering new quantitative easing new repo write ballads. But at the end of the day its just more debt somehow as you say the crisis is caused by that and the solution from these guys will be to increase that correct you know were going to battle a death driven crisis by taking on more debt which is what you said is what weve been doing since the the 990. 00 s. At least with Alan Greenspan bailing out everybody in sight. And theres a limit to that but the limit is much higher than that originally seemed like it was you know because in part because an unlimited central bank Printing Press is a great tool for what would people in the beginning the world is basically ok and in part because its global everybody has a fee a currency printed press so all the Different Countries can come watch each others backs and the fact that they were able to cooperate in this you know essentially a global long term inflation. Has meant a big they will get away with it martin but should have but the cost of massive increases in debt. And there there is a limit somewhere theres a number of weeks yet. But we wont know until after the fact what that number is now i suspect its pretty close to where we are now but jeffrey thats for sure. But yeah from here on out we get more and more experimental we take bigger and bigger risks and i do think the. Well bailing out all the industries that are going to blow up because of the d coronavirus thats one thing thats going to happen and by equities on the grass. Now this these things basically short circuit capitalism because you know 2 things in capitalism work the work you need failure you know you need in individuals and companies and industries that make bad decisions to lose to teach the rest of us how not to be a. Second at a certain point death stops being stimulus and starts being depressing of Economic Activity you know becomes deflation. And a bafta awards there is really not much left you can do or you know when the marginal utility of that never was the bag for each new bar a buck drops to 0 and youre out of a emma and were headed for that you know the line is dropping some topically its worth 0 and when it hit 0 been its game over for all of this so its now a question worth trying to that is because were really 6 months away from that are we 5 years where. And we cant know that and we cant know whatll happen to equity prices on the web maybe if the governments are buying up all the all the common stocks basically doing got a leveraged buyout of the private sector on the part of the government maybe they see asset prices all elevated but with a lot longer but the cost of basically the end of the Wealth Creation price signaling mechanism of capital and then thats basically over for the system weve known for all of our lives and you know were perilously close about what it reminds me of a medieval churches in france they have to throw the corpses into the basement and that they were unaware that rotting corpses and they death that was underneath them was making them sick as they were praying to go to heaven upstairs in the pit so he kept crying. More debt and throwing it into the basement and i wonder why theres no inflation. You know this idea of creating debt is going to somehow create inflation and set of create more deflation seems to be a point that every major economist in the world missed paul krugman at the New York Times doesnt get it danny last flour never understand this no economist who opens their mouth today seems understand that you this money printing the quantitative easing they say is to fight deflation they dont understand that theyre causing deflation but i want to ask you about more of a historical point you know during the 1930 s. After the crash of 29 the market of course went through an 80 to 90 percent crash but that was punctuated by these rallies the spikes as that were going to see this time i think john yeah we could easily see more volatility here on the upside as well as the downside and that thats even what happened just back in 2000 were you know the system started to implode because its approaches and we saw im not just steady downward pressure of sucking sausage huge not as big as the ones recently but a lot of all the still business so yeah you know when Central Banks are in the markets with basically unlimited amounts of cash they can do all kinds of crazy they can make things go d up for a while and then its off to go back and you know all of that could happen so that makes the details of whats coming completely unpredictable you know the broad outline that ok were taking us. Now Monetary Policy is going to try to salvage the. Currency the world are going to have you know i think that had a bit of a kick but how we get from here there is very unpredictable because it has a lot to do with the decision so you know guy sitting around conference table is under pressure and. And having extremely colorful tools at their disposal so we dont know how this will play out exactly but we know one thing we know is that the guys with the monetary tools are clueless as they dont understand the power of the playing with and the 2nd is that beyond a certain point when death is a manageable you know you borrow money and youre good about it for a while but then there reaches a point where theres nothing you can do anymore that you only have some kind of a collapse and some kind of extreme pain and maybe youve got a choice of types of types of collapse for instance we could have a 9 to. Deflation or a depression where all the debts its way through to solve or we could have one more germany hyperinflation where we attempt to wave over the plate in a way you know those are 2 separate kinds of crazy things and we might still have a choice between those 2 but its only goes to we dont we dont have a choice somehow getting back to normal organic Sustainable Growth from here without a huge amount. So yeah we could see extreme volatility we could see that but you have to work its going through the roof here but it wont be healthy bull markets and stocks or bonds or whatever it will be on the side of a stream papyrology and a prelude to some kind of systemic collapse well one market thats telegraphing deflation. Its telling us latin claire that a debt global debt deflation is upon us and that is the us dollar and the us dollar is rallying so john of a now your web site is Dollar Collapse dot com the dollar has resisted all downward movement its high and looks like it could go higher the dollar is saying massive deflation is the dollar the only safe haven out there and i say this in the context of gold because gold its making no off time highs against every major currency in the world but not so the. Dollar one what do you look when you look at here now when you have a dollar has it held up a lot better than it seems like it should have based on just the numbers but in part thats because the real world of the need is an even bigger mess than the u. S. Its so you know relatively good as a place to hide out but not objective because you know the numbers that underlie the dollar or so around this and all the big the up currencies are having the same weight as a very great. As for gold yeah you know so far the dollar has been a better safe haven the gold too as it has limited time frame because. Gold cant be inflated away by rogue Central Banks but the dollar can be along with all the other currencies because remember its not good for us to have an extremely strong dollar in this kind of world because that as you said is deflationary perhaps and a an over leverage economy however if you play ssion because that means the real cost of your gas is going up as the value of the currency that you got used to pay back your desk goes up. And that is a recipe for mass spec of seeing your ass so you know youve got trouble right now saying. Why does everybody else have lower Interest Rates than us you know why are their currencies weaker than ours hee hee. You know a very simplistic way yes. But his solution of course is too aggressive we. Have to get us back. To you know at the back. Actually well have to do john a band im going to get it off there and thanks for being on the kaiser report ok thanks max john are being has been our guest here on kaiser report hes a Dollar Collapse dot com my name is max kaiser i was Stacy Herbert thanks for watching if you want to catch us on twitter its kaiser report and so next time by all. Those initial subjects to show yes and. I say oh shes for the for. The detroit improved for. Each of my parents. Never to try it. Just because the global was going to have to close to the city obama would. Have looked like the bicycle business for. You and youre fighting with the left looking out. The left coast approaches about 4 to 6 months because. Im going to fulfill the repeated promises apologise to the people and promise to be you know weve all pots to. Be. Pretty. Pretty good bertha now you want to 1st. Know. Paul. Chose seemed wrong why dont yall just dont call. Me lol yet to see power these days comes to catechize and in game training equals betrayal. When so many find themselves worlds apart we choose to look for common ground. You are no offense but you no longer a young woman in fact you are one of the last living survivors of the nazi ellis asked am aware of it. All you like. And you can never forget there you go no auschwitz was really like to be inhaled because he would never believe it was a human to do to as an operating cost for 30 years and most of the burden of it it all seems a lot over by the side to make it to work when i get out on the farm saw you know what its like ma songs were next to you so you can listen and hopefully bless the heart hurts. Feeling shot a continent the u. Announces the closure of its external borders for the next 30 days as europe tries to turn the tide against the coronavirus. Meanwhile the white house scrambles to shield the us economy from a further stock market battering over coronavirus fears unveiling a huge stimulus package. An Australian Special forces face a backlash after graphic video emerges showing you soldier shooting dead an unarmed afghan man in the street which. Is. A very warm welcome to the