In 2009 when the last crash when it was just 12 trillion 6600000 unemployed last week thats on top of the you know millions of others in the previous weeks 5. 5 plus its 3. 6 plus blah blah blah so now we have 17000000. 00 unemployed thats over 10 percent Unemployment Rate and of course during this chaotic time during that announcement of the new unemployment numbers we saw the fed introduce some new sort of 2. 00 trillion dollars scheme whereby theyre going to buy high yield the bond e. T. F. I jumped at i e well the fracking debt all that fracking debt thats blowing out right we knew that fracking industry was going to go belly up and that it would require a government bailout we said that was a 100 percent guaranteed and we were right you know us thing but Mainstream Media not only are they forced to be broadcasting other basement but only channel 4 in the u. K. Now bankrupt and for us to be on the street and Speakers Corner blabbering about whoever they may gather in these times of social distancing but weve been right weve been right for 10 years right about fracking right about the fed right about money printing right about the stock market right about the gold market right about the silver market and we would go. In one of the world to tell people to buy big coin of the dollar back in 2011 we made hundreds of thousands of big coin millionaires in 100. 00 Different Countries and thats why were considered to be almost the adam and eve of bitcoin i think in that term on twitter but also on twitter i found this tweet from matt stoller and hes looking at you know were in the middle of an election theoretically that might happen in november 28th and especially biden versus trump and you know you would think during the sort of times the democrats would present plans and what they would do as opposed to what trump is doing well progressive simply cannot internalize that a massive Corporate Bailout just occurred that it will shift wealth and power upward and that their leaders warren and bernie who got popular oppose and wall street supported that progressives have chosen to be irrelevant this is what i dont get about the progressives media so lets talk about jimmy door amy goodman. Juncker sink juncker and to some lesser extent joe rogan right they look at these numbers and they look at whats happening in the economy but they make no connection to the Federal Reserve bank of money printing jimmy doors never mention the central bank the Federal Reserve bank never ever ever ever and yet the progressives if they want to be progressive and they want to progress the dialogue forward they need to talk about the central bank that is the key component of the Global Economy the American Economy and the key crisis that were experiencing today so not to mention it is willfully ignorant exactly we have 2 different categories happening that government and the treasury and on the Federal Reserve and basically neither of them have oversight and theyre pouring trillions of dollars to the Corporate Headquarters of huge corporations not the Small Medium Sized Enterprises that are being funneled into these crazy sort of online systems that dont work but the. Major corporations the multinationals those that are getting bailed out and the big banks and the ordinary worker thats by the way that you know the Left Wing Party is supposed to speak on behalf of their stock on trying to file Unemployment Benefits and those Unemployment Benefits are built on cobol which is a. You know a Software Program written back in the 1950 s. And theres only like a handful of people in the United States that are still programmers in cobol so systems are going down across america and people can apply for unemployment online they have to go in person stand amongst thousands of other people trying to file online right so as the Unemployment Rate is now projected to reach 30 percent in america higher than the Great Depression the stock markets up 30 percent from recent lows and the size of the Central Bank Balance sheet has expanded by trillions so the question is which came 1st the expansion of the Central Bank Balance sheet or unemployment what is the cause what is the effect as weve been saying on the show for 10 years Central Bank Balance sheet expansion causes the unemployment because it causes the deflation that causes the economic duress that creates the unemployment the central bank will say point blank were trying to fight deflation by printing money and yet they caused the deflation by printing money oh in the stock market happens to be up 30 percent oh my and the top 110th of one percent just made a few more 100000000000. 00 its an accident thats a progressive dont understand they they dont or stand back taxes and employment are not necessary as 0 percent Interest Rates and if you can print them borrow hundreds of trillions of dollars at a clip you dont need workers you dont need taxes americans pay 3. 00 to have trillion in taxes last year the fed printed 6 they have trillion in 10 seconds last week right you dont need workers you dont need employment you know if Employment Rights went to 100 percent unemployment the stock market would be a 4050. And on the doubt of course because any time the progressives do fight and they fought tooth and nail to get some a 400000000000. 00 package in for the ordinary person in america apparently thats not going to a lot of that money one even arrive for months from now but immediately the fed can create money in credit for all of these bankers but every time they succeed in getting 400000000000 for the ordinary joe bag donuts then the bankers go well we cant disrupt we need to get at least 10 times that bad we need triple quadruple quintuple 10 topple that well its designed to disenfranchise every american whos not a friend of the Central Banks and told we have a peasant class like evan saudi arabia and a prince class like they have in saudi arabia jamie dimon is a prince and the central bankers on the bankers on wall street are the prints class in this neo feudal period and everyone else is part of the peasantry what you call the middle class are becoming peasants theyre living out of their trailers theyre getting dog food they cant scrape enough to get by theyre like haitians trying to pick worms out of dirt and thats the way its designed we also designed the situation in haiti of course right whether its disenfranchisement of haiti or bombing in iraq or the war in afghanistan or the attack on south american countries on the quds thats all off broadway production of what became a broadway production here in america you know people cheered the bombing of iraq and then Mainstream Media and this n. B. C. Rachel maddow c. N. N. Yeah lets bomb iraq not realizing this is a off broadway production of whats coming to america within 2 or 3 years now we are experiencing the full frontal attack of our government attacking us now youre watching many shows across america on cable news and on the me on the networks as well people are reporting from their basements and their attics and their moms bedroom and what youre seeing is that theyre still gossiping its all essentially you tube channels of people gossiping about its various. Little figures whereas they ignore the entire elephant in the room which is the fraud that is ongoing here well show 2 tweets about the Federal Reserve bank and what theyre doing on behalf of their clients who are the big banks on wall streets of the biggest experiments in monetary history Central Banks buying government bonds like crazy to monetize the public debts will not work indefinitely no one can say exactly where the Tipping Point is if the Balance Sheet exceeds a certain level Inflation Expectations will skyrocket and you see in the chart there that top line is of course japan where the Central Bank Balance sheet as a percentage of g. D. P. Is 109. 91 percent the fed is that blue line down on the bottom and theyre at 26. 75 percent of g. D. P. 43. 68 percent the bank of england merely at 21. 7 percent this idea that there is an endgame to be that monetization that they choose to call quantitative easing is problematic because in a world of 0 percent Interest Rates an infinite credit they can keep buying government bonds they can keep buying junk bonds they can keep buying stocks they can you know in japan the amount of the Balance Sheet of the bank of japan is in excess of the g. D. P. Of japan and theyve got close to 300 percent that the g. D. P. As a country america on that basis combined other 15 trillion dollars worth of bonds and stocks and the endgame is not a collapse due to policy and an economic model thats unsustainable the end game is that you have a prince class that owns all income producing assets in the country and you have a pauper class or a peasant class that is living in the dirt its neo feudalism by design its not a mistake in policy and the answer is it has to do with understanding that the central bank is at the center of it all the answer is watching kai street. For in knowing about gold silver and because you dont need to participate in the system you will be a loser in the system sure keep on turn tuning into cold air and the view and Rachel Maddow and get your bread and circuses and say bull bernie bull trump and that might make you feel better it might help you get through the next hour but how do you get through the next decade the next 2 decades and youre gonna have to step away from the bread and circuses and youre going to have to wake up because what theyre doing is they are buying junk e. T. F. So i didnt think theyd go there said john briggs head of strategy at nat west so even the bankers didnt think that the Central Banks would be so brazen and helping them out like that well youre absolutely right the only way to escape this is golds over a big line because it has already made a move from a 1. 00 277008000 based on its anticipation of this fraudulent behavior by Central Banks it was designed to fight Central Banks and it made a move from a dollar to the 7000. 00 way 2100001 its way 2400000 its doing exactly what it was designed to do gold is that now not only making new all time highs against every major currency the world but now about to make a new all time high in u. S. Dollar terms so gold is not fools gold is down creeping higher plus l b m a n comix are caught short gold and theyre about to go completely bankrupt well those 2 entities do exist in a paper walled controlled by the Central Banks so they could print money as much as is required to deliver because they could do force majeure and not have to deliver physical gold but again you know bit coin as you mentioned when it went from a dollar when did it go from a 1. 20 as i said during those glory days when you know the biggest hoax on earth was balloon boy now we have the hoax of these battle outs and stimulus that are total hoaxes they say theyre helping you heres 400000000000. 00 presidency might not get it until next year in the meantime we. Just created 40 trillion for bankers because of the notion that how dare somebody even think of helping the peasants so right back to coin anticipated this thats why i said multi thousands from a dollar and now as more people realize wait a minute this big quite thing was actually right mike kaiser report was right then they start to make a move 2800000 up 2400000 we tell you 1st and Stephen Colbert is in his basement and looks like a frickin trailer park trash on talent an unfunny idiot a cut stay tuned for much more coming your way. Is your media a reflection of reality. In a world transformed. What will make you feel safe. Isolation for community. Are you going the right way or are you being led. Direct. What is truth what is faith. In a world corrupted you need to descend. To join us in the depths. Or a maybe in the shallowness. Welcome back to the kaiser report imax keyser time now to go to mark hughes sco of morgan creek capital welcome back mark max thanks for having me always great to be with you this is a once in 100 year event i think and so just walk us through how you handle that your frontline money manager guy so this hits what happens i appreciate the placing us in the front line and i i definitely would would not put us up there with the the angels and saints on the true front lines and in the Health Care Situations but also you know its the food delivery workers its the food prep or prepares its the people who are cleaning up and keep in building safe then and germ free so that other people can do their job so theyre the real frontline but but i like the fact that look we do have to keep capital safe and we are at theres a bigger threat d to what we do in terms of the Asset ManagementBusiness Today as any time ive seen in my career in my lifetime we probably have to go all the way back to 1930 to see a similar type threat and sure well talk more about that but the real issue today is its not the virus thats the threat weve got lots of viral threats around the world some that are actually worse than coded its the response the unprecedented response both to shut down the Global Economy but now worse the response from fiscal and monetary stimulus around the world that is i think sowing the seeds of a greater demise Unemployment Rate of skyrocketing and some projecting at the rich 30 percent i think of the depression of the 1936 at 2 maybe 25 percent so an Unemployment Rate thats higher even than that time however there are some key differences some back in the thirtys we had a Gold Standard we had also. We did not have the kind of activist fed that we have now that is the buyer of 1st order instead of being the borrower of last resort we also have 0 percent Interest Rates which are unique almost in history we also have negative Interest Rates which are definitely unique in history so when the unemployment number comes out and its skyrocketing by 30 percent projected but the stock market goes up by 30 percent. Thats you know thats an interesting situation so its only made possible by 0 percent Interest Rates or when you cast kerry said recently at 60 minutes infinite. Infinite amount of money printing so thats different than the 1930 s. Or is it mark its interesting that you and i seem to get together on these historic days right we were we were together when kashkari made his famous infinity comment and you know i told you about this hash tag q. E. Forever for a long time and i think you need made at the label of our last show and here we are again on this historic day where i tweeted out earlier that were at the Tipping Point capital t. Capital p. Where weve now turned the dollar into toilet paper right we basically said it doesnt matter how much we print were going to keep printing in till the bleeding stops and i think what were experiencing and and the reason im not sure its going to work and why i do think we are at risk of a greater depression is if you think about how commerce works right there have to be people employed there has to be a volokh city of money and if i have a dollar and then i go get my haircut and then the haircut or goes out and buys a shirt and a shirt seller goes in and gets a meal and the restaurant tour goes to the butcher and the butcher goes to a hotel then that money is actually circulating in the economy and we get g. D. P. Growth we get profits growth and we get real. Well if i just printed dollar and its sitting in a bank account somewhere and it would print another dollar and is just sitting in a bank account somewhere actually all weve done is reverse is decreased the value of that currency by half because now we have more dollars without any increased circulation and i think thats where we are in that if you go back to the Great Depression from 129. 00 to early 19 130. 00 we fell 30 percent and then there was a series of events where the president hoover at the time came out and said everythings great ever is going to go back to business america is awesome were going to america 1st we borrowed that from the german were all homeland and all this great stuff was supposedly going to happen the market rallied 1820 percent oh and then we realized that wait a minute if we didnt if we put up barriers to trade like the whole the smoot tariff bill and we you know go against immigration and we do all the things that slow Economic Growth and slow velocity of money we destroy capitalism and what happened we all know the end result we went down another 550 percent over the next 3 or 4 years and we turned a garden variety recession into the Great Depression and you said you know we didnt have 0 interest we actually did we also had q. E. We also were buying our own bonds because back then we were an emerging market run by a gang at the mafia was basically in charge no would buy our debt so we started buying it ourselves so q. E. Is not new 0 interests are not new we had it all during that you know Great Recession which turned into the Great Depression and i fear were on the verge of that again if we make bad policy decisions whats your portfolio mix i mean not to get too technical here but you know a classic portfolio max bang stocks bonds cash a little gold and you introduced really to the Institutional Investors out there the idea of getting off a 0 with bitcoin i think thats probably held up well for your client. Took that advice because its become one of the least volatile assets to hold and this time certainly less volatile than oil and so how do you handle this on the on the Portfolio Allocation side they just raise a lot of cash or you forging ahead instead to buying the dip or what how do you position what were doing is the same thing weve been doing since january of 2018 youre right before valma get the 1st one which the recent bout of volatility makes bomb again look like a you know a bump. So what we started doing back then was you said look we fear that hooverville is coming and i actually wrote a paper on it 3 years ago when when trump was elected saying look he was just like hoover an inexperienced president who had all these bombastic ideas about america 1st and how it was going to be so great but what he laughed was leadership and experience i was worried that we were going to have a repeat of hooverville and the Great Depression and so what we told clients was weve got a different way of looking at the world and i took a lot for this in fact people would say you know you can have clients leave and i said very clearly which i took a lot of for to as i said id rather lose half my clients than half my clients money and i think thats really true so back in january 18th we built a portfolio and it looks like this got 6 pillars so about 15 percent is cash because cash is king in this environment another 15 percent in bitcoin and well talk more about that im sure another 15 percent in a proxy on Bitcoin Mining so the best i could do there was a m d. Then had 15 percent number to market because i thought emerging markets where if youre going to own equities you want to own the cheap equities emerging markets were cheaper 15 percent in long treasuries and then 15 percent in hedge equity in rerun a hedge equity portfolio here its long shore is actually only down about. 3 percent march down 2 percent for the year so if you look at that portfolio over the last 12 months and why do i talk about the last 12 months well 12 months ago i was on c n b c and was talking about this type of portfolio and literally got laughed off the stage you know how could you own big corn for clients and how could you be in bonds and you dont you know stocks always be bonds well over its actually over last 20 years long bonds of beat stocks and over that 2 year period where stocks are down about 5 percent that portfolio that i just described is up about 22 percent so thats pretty good people are feeling pretty good about that i think its unprecedented to have Central Banks so aggressively buying stocks in the open market theyre buying junk bonds the Swiss National bank is the more of the biggest holdout of apple stock and right now they seem to be complete going with Donald Trumps message that the only thing that matters in this world are people for a one k. Accounts and getting that stock market back up higher and if you can borrow all the money you want to percent interest and youre buying all the stocks you want without any limitations at all and youve got a lot of hedge funds who are front running that action with a lot of money theres a lot of cash out there the saudi royal funds huge than the and the wage and wealth 1. 00 is huge theres a lot still a lot the pockets of trillions of dollars out there if they get into the front running game and its buy just keep buying these stocks to help the people for a one k. Plans is it prudent to not kind of follow the trend there its such the question max and thats why i love getting together with you as youve always got the question for the time that were in and you know the reason that is the question is look everything that weve talked about up to this point about how it could be a repeat of the 1930 s. And the Great Depression or the greater depression thats only one scenario and is sort. Rose says the idea that you can predict the markets precisely is folly you have to think in certain ario so its a nonzero probability that were in the verge of another Great Depression there is a nonzero probability that everything you described about the fed and the fiscal stimulus actually getting into the equity markets and pumping up nominal stock price is the key word there is nominal what people forget is that rising asset prices are not necessarily a good thing and theyre definitely not a good thing for the 49 percent of people in this country that dont own any assets they dont own stocks they dont own collectible porsches they dont own fine wine they dont own great real estate so whats happening here is kleptocracy and its been going on for decades and this is the plan right q. E. Was not designed to create Economic Growth q. E. Was designed to impoverish the 99 percent and enrich the one percent and everything thats been going on in the last couple weeks is greater degrees of that you know the idea of m. M. T. A year ago people said well thats ridiculous and people like trump who talked about it were stupid well hes still stupid for talking about it but now were going to live it its actually happening there is a belief now that we can print as much money as we want we can buy any asset right its actually illegal as we sit here talking it is illegal for the fed to be buying Corporate Bonds and high yield bonds but theyre doing it they set up an s. P. V. Funded by the treasury to get around it that is that is illegal activity why do we allow it to happen and yes the Swiss National bank in the banks japan buy stocks and the fed would like to buy stocks janet yellen saying we should buy stocks no we shouldnt but they actually do something called the plunge Protection Team and they operate from 10 oclock in the morning to 1130 every day and what they do is the primary dealers get their bomb. Bought from the fed and then they give the loans to the hedge fund or to leverage speculators or to the Bank Balance Sheet themselves and they go buy a quick look at the stock market every day from 10 to 1130 just go straight up and then we got to meander during the middle of the day and then from 2 to 3 oclock it goes up again because thats when buybacks happen now buybacks are down so its not happening quite as much but then it 330 thats when the smart money trades thats when the institutions trade and if you look over the last 6 months theyve been selling theyve been distributing not every single day but by and large the smart money is selling and makes it possible that all of this you know cronyism and crony capitalism that is funneling money into the top one percent could make the stock market go up yep its definitely possible its a scenario we have to consider that well dont forget that at 4 oclock its cocktails at paris at hanover absolutely all right mark hughes go thanks so much for being on the kaiser report thanks max and stacey love being with you guys and cant wait to have a cocktail with you out of isolation so we can have a virtual online anyway thats going to do it for this edition of kaiser report with me max kaiser and Stacey Abbott want to thank our guest mark morgan to create capital if you want to catch us on twitter its kaiser report until i stopped by a. Thinking of getting a new phone the ones we got in here shows no problem was he didnt know until he was trapped in this tiny little wired we dont need a crate with the wall just. Freaking out and he will want to spray him anywhere near and thousands of breeding dogs are caged in inhumane conditions on puppy farm i mean 67 years you know theyve been locked up in cages outside you see no protection from the weather the heat you know the courtier the rain the snow the thunder nothing they have no protection. To let you. Know its ok. Across the us cruel puppy mills are supported by dog shows on pet stores most of the puppies that are coming from these large Scale Factory farming kind of operations are being sold and at stores even joined a Group Businesses are involved like agoa mom santa there has been a shocking amount of organized opposition to adverts to increase the standards of care for dogs but in commercial rating for so many most of that opposition is coming from huge agricultural groups and industries that have nothing to do with dogs dont buy dog on o. T. Humanity is on the edge of a precipice thanks to a continuing destruction of the natural world. Were just seeing lately a lot of bills also. Losing much of a later period. Of pianos and it. Lets them having it can hold up. To the new. I think that over the war. Or the. Only dealing in the muslim world as a rule book you can sit around and stuff it and ship them through that. Human activity has brought us to the brink of the worlds 6th major extinction of it and the people in this film just cant take it anymore