Offering us a bargain here u. S. Treasury expects to borrow 2. 00 trillion a net marketable debt in april to june quarter 3. 00 trillion dollars more than estimated in february to put not trillion dollars come on down to the feds Bargain Basement to put montreal in dollars order now and get 6 trillion dollars more in 6 months or now just 6 trillion dollar war in 6 months come on down to the fed broader base with high of j. P. L. I print money like a maniac come on down to the feds Bargain Basement ill give you a choice dollars right now because of all baseball cards you got civil civil war you got some old rags that round the house will give you a 1000000000. 00 come on down to the feds money printing shop right now. You know you might want to this is christine the guards money printing go to christine look at well just ridiculous to look at than the one most soon to print how do you know how to reduce. All of movement is all of that good you. 7 can assume. We know that your french is not up to par but were going to say i have 100. 00 euros right on my jacket my velvet jacket im feeling flush unprecedented the u. S. Expects to borrow a massive u. S. Dollar 3 trillion or 14 percent of nominal g. D. P. During the 2nd quarter alone current outstanding public debt is now 25. 00 chilean dollars i think were about halfway there in this room kaiser report never fails to deliver the goods you know weve been saying now for a few years that ultimately theyre going to 100. 00 trillion dollars japans already had on a percent debt to g. D. P. Their feds Balance Sheet kuroda their central banker has already taken their central bank above 100 percent of g. D. P. In terms of debt thats buying a lot of junk lot of assets so america 6789 trillion dollars theyve got another 60 trillion to go the globe is set to go to 100 percent g. D. P. Debt to on the Balance Sheets of the Central Banks so you know theres 100. 00 trillion dollars to go that stock markets are booming in particular sectors its particularly in the Banking Sector a member of the p. P. P. Program from the feds it all went to j. P. Morgan 1st they took their cut which was substantial like 20 percent or more and then whatever was low. Over they dole it out to the poor service and peasants in america here for its like you know people indulgences give us so well give you 10. 00 if you give us 50. 00 in banking fees says jamie diamond im the pope of bad money im the pope of fia jamie diamond my god what a crook well you know they continue to print apparently they us deficit the budget deficit will hit 4. 00 trillion dollars this year i remember the shock only just recently in the last few years here on the part of when the u. S. Budget deficit hit one trillion and we were like oh my god like this is the end but apparently its going to go to 4 chile and thats why theyre borrowing 3 trillion but theyre saying all of this infinite fiats is going to cause infinity war because lets look at this Central Banks pandemic battle could stretch into an infinity war big Central Banks are buying from an expanding menu of government bonds corporate debt and consumer loans to help businesses and households through the coronavirus pandemic and no one knows whether it can stop right well again i was dead right in that the Central Banks are taking the entire Economy Private right they print the money to buy all the income producing assets to buy all the stocks all the bonds all the property all the leases all the markets is everything right so theyre taking the entire Economy Private ive mentioned that 1st as a concept maybe 3 years ago here on kaiser report now you have news reports of Mainstream Media saying oh my god what if they never stop what are they just keep buying everything with all their printed money what would that mean so theres 2 possible outcomes number one is male feudalism where you have a return to the middle ages and all of the economies on by a few oligarchs and everyone else are living on you know peasant indentured servant click farms why click on the ads on the social media to try to when approaching tell the us. The outcome would be pure so with his asian soviet ization of the economy where the state owns everything and everyone is equally poor that would be the other outcome but either one of those 2 are where were headed and or a combination of the book of both so that would be the worst of both possible situations a pure attack a stock or c. But one thing thats not coming back is a free market american capitalism well plucky is coming back because he loves money printing remember last episode we wrote him off we sent the days of are over this is there hell mari all this money printing going on he is of course british thats why hes so spindly like this but hes got to print some pounds here. Thats for the queen thats the queen the queen is financially. Content. Dont birth well in the extreme case that every current virus requires further damaging lockdowns Us Federal Reserve and its peers float the whole boat Government Debt corporate debt perhaps even financing for mortgages and paychecks of course max were going to need a bigger boat right thats sealed saying in jaws land where you know the black hole of debt is. Well i should actually put plus wait a minute here is saying plucky british because that machine toy was loaded with pounds thats the thats not right pluckiest its a red white and Blue American chicken. That would be a big plump one we bought this in when we were in the United Kingdom but you know what so here they talk about the infinity war because of course all fiats is measured just against all their feet so that if theyre all collapsing and theyre all spreading around in a big pile of junk on our you know studio floor here well theres no way to tell which one is more developed in the other theyre all devalued against each other but its also caused a great deal of you know strife in for the American Population not only have we had to export all our jobs in order to export dollars to maintain our reserve currency status but the fed constantly has to intervene for the whole entire world when these crises happen because every time a crisis happens the dollar goes up and therefore all the other economies in the world suffer because theres a shortage of dollars and time out of work or road skills business failures destroy wealth and depress investment cheap money and cash transfers risk fueling asset bubbles that white in the gap between rich and poor as weve talked about the cantillon effect and the rise of the cantillon air class yeah thats right the canceling our class people to just shake down the fed like Warren Buffett but even that has limitations like a fed really denied warren buffet you know he was trying to shake down the Airline Industry during the crisis of the past couple of months and get sweetheart deals and freebies and guarantee profits and the fed stepped in and said no were going to be buying airline shares and in front of warren buffet they front run warren buffet the ultimate front runner give you an idea because the fed is now much bigger than Berkshire Hathaway its much bigger than any of these private equity groups and thats the purpose is to take everything private for the people who own the Federal Reserve bank of america. Which are about 20 or 25 families. So importantly you know with ken telling our class with can tell in effect what happens as you know basically would have warned you about this corruption spreads right the corrupt class consolidates its wealth and and basically feeds each other the free money and one thing i was told in confidence i cant give the source but in the past week somebody has told me that they used to work with it basically with somebody within the new york fed and any time there was a crisis like this like the government was about to tell airlines that they couldnt fly at all and they were going to shut down all Airline Flights normally what would happen is how they get around that Insider Trading is theyre saying were calling you know where the new york fed and were calling the experts were going to call all the experts out there like that just because we want to help you the ordinary people who are not until millionaires so were going to call Warren Buffett and say hey warren we know you own 10 percent of the big 4 Airline Stocks in america what would you think if we had to shut down all flights theyre signaling to him this is coming theyre not giving him inside information theyre saying theyre just asking this benevolent ukulele playing guy to give some free advice that ordinary people write if you do a forensic analysis of buffet deals over the past 30 years youll find a similar quid pro quo in virtually all of them its all inside Information Inside Information is the hardest. Crime to prosecute of all major crimes and their way to get around it are almost infinite and that what you just described is one way to get around Insider Trading law and buffett dough is having trouble because he helped fuel the rise of this monster of the fed and now its attacking him they say like the frankenstein perv you know the movie frankenstein is about the Mad Scientist dr frank. Stein the monster had no name so dr frankenstein or in buffet created the monster created the fed this mame was money printing robot contraption that is putting everyone out of business and nobody can stop it but also in the last days of empire as weve catalogued here in chronicles here on report for the last 10 years you do get hyper partisanship and were having hyper partisanship and warren buffet is a well known democrat and he sponsors democrats he clearly doesnt like trump and therefore hes not getting those calls steve minu chin is not calling Warren Buffett to say hey what would happen if we shut down the airlines clearly Warren Buffett who said the ultimate insider the infinite fee insider he had no idea this was coming because remember before he dumped all his sheriffs he bought more delta shares 1000000 on february 27th so he clearly was not given any warning about this and thats something we need to dig into a little bit because youre saying in this case due to political partisanship he was not tipped as he always has been or usually is and this would make sense then in retrospect because he dumped those airline shares like a petulant child yes he had just bought delta a 1000000 delta a couple of weeks before at an all time high of my debt and then suddenly because he wasnt tipped on the inside information he became a brat and said well i dont care im going to blow it all out and i dont care whos hurt the hardworking men and women of america the hell with them he said on his Conference Call he Still Believes in america while he stabbed in the back america and now hes losing horribly his reputation is trashed and finally max it gets to the question at what point are we worried with just how much a role the fed is playing said catherine judge a Columbia Law School professor who studies Financial Markets if they are the only actor and people are worried about liquidity access to finance how much pressure comes to bear longer term it is due. Its concerts hanging right how much work they have not going to stop as weve been saying the cows report for years they will not stop insult every last stock and bond a piece of property in america and other places around the world is bought by this private consortium of bankers called the Federal Reserve bank and we are going into neo feudal times mixed with a little soviet ization to give it some nice flavor well im going to take a break and when we come back myself and plucky and stacey wont be here itll just being me and a guest dont go away. So what weve got to do is identify the threats that we have its crazy. Let it be an arms race is often very dramatic developments only really going to exist are they will see how that strategy will be successful very critical time to sit down and talk. Thousands of american men and women choose to serve in the countrys military and the decision. Every song came to a complete. The day that i was raped. You know told a shot to kill me and i see how it destroyed my life many screamed at me and he made me come in the gram my own arm and he raped me with his birth thinking if you take into account that women dont report because of the extreme retaliation its probably somewhere near about half a 1000000 women have now been sexually assaulted in the us military is a very very traumatizing thing tat happen but ive never seen trauma like ive seen women who are veterans who have suffered military sexual trauma reporting rape is more likely to get the victim punished to be a friend and almost 10 year career or chose very invested in and i gave a sex offender who was not even put to justice or put on the registry this is simply an issue of tower and violence male sexual predators for the large part of target whoever is there to prey upon whether thats a man or woman. Baka back to the kaiser report on max keiser time now to speak with lawrence apart he is over there at the Equity Management associates you can follow him on twitter i follow him on twitter hes got a lots and lots of really good stuff to find out all by his words on hard money wisdom accent or a large swath come to the kaiser report thank you max honor to be with you guys are mexico stacy for years i said before you guys are the old geezer sound money so its im honored to be with you how cool while already lets get into it sell a large you write in your latest newsletter of the rubicon has been crossed and the u. S. Government does goes direct with helicopter money elaborate on this what is helicopter money in this case and what happens from here sure as im sure a lot of your listeners know i mean in 2008 they started increasing credit and printing money and we also i print place which follow and we were wrong and some of us suffered as a result of that what they did was they really plug the hole that created by the collapse the debt structure and the Housing Market and money didnt make people the money made it into the stock and bond markets and so we created a bubble there and a lot of the fell and so it didnt although in places understated as we all know you couldnt really see the inflation we expected in that particular cycle and the reason is that might really get to the people and in this particular case that certainly has changed i found it fascinating that you know for the covert crash you know the notion of of printing money or giving money to people or or being out running large deficit was somewhat enough to so many people and you know andrew young and Bernie Sanders were considered you know nut jobs and course the minute or the minute the stock market at one percent on. Owners threatened with their liquidity in a crash and you see although you know the risk our guys go out of business they certainly figure out a way to get money to the people and so all of the checks are a pittance you know the direct myself the corporations and and all the money that theyre using are renting and distributing that represents the helicopter money that friedman talked about so many years ago on that or knack ear responsibly so it was a possibility Going Forward and were there and of course once you start that you can never stop and everybody most of us already knows that and so it will only grow and as my good friend and oliver says this time were going to get inflation you know good and hard you know its coming. So and even to the degree we get short term deflation in Something Like price of oil. It doesnt really matter because i would submit and this is kind of the lacy hans argument that all of blasio is going to create is going to you know protect the money i would submit that whats going on really here is what i call cease which just currency substitution inflation and were going to start to see that you know the dollars no good i mean if you look at it if you look at the United States government you look at their deficits you look at the Balance Sheet you realize that its just completely bankrupt this government is is beyond bankrupt and so as a result of that its just a matter of time until people wake up and they realize that having savings that are dollar denominated where they get cash or bronze its just going to be a very bad place and all its going to take is a breakout of the gold price from something north of 7021800 were still 5 minutes to the 2003000 range and then greshams law will take over in my view and you know it will be will be on a road to what i sadly think is it is a y. More like out on my i hope theyre smart enough to maybe try restructuring or that. Looking at politicians that we have in office today i cant i cant with good conscience say thats a high likelihood sorry its a long answer. Actually i want to come. Right well done so were going to get into this money velocity number and chart in a moment but i just wanted to come back to what youre saying there in terms of the expectation in 2008 with all the money printing would be inflation we didnt have that inflation we actually had more deflation and now looking back now it does make sense that we would have more deflation because looking at the big picture lawrence starting in 1971 when the u. S. Closed the gold window and we went into a global currency lammed where all money is issued without backing and so it can be said that all fear out money is debt money its all brought into existence as debt and so if in fact the debt money which does have an Interest Rate attached to it is floods the economy and then the need to pay interest on that debt means do you have to issue more debt money to pay off the existing debt money well then youre going to have a situation of perpetual deflation because youre flooding the economy with debt and debt results and deflation when that debt cant be paid when you have a debt default the u. S. Defaulted on its economy on its notes ensemble geishas and 1971 and they replaced gold with fiat money nonsense and now that defaults 4045 years later. And after going through the crisis of 2008 has metastasized into the crisis of 2020 which is 10 to 50 times bigger so what i want to get into here is all the terms being is inflation versus deflation and these 2 terms are defined differently by different camps out in the economic study however one chart and one graph and one data point has been resolute in depicting whats really going on and that would be the money velocity chart which i think has really given us a clearer picture of whats happening can you tell us what that money velocity chart is and what its telling us sure its a function of how much money is moving through the system and its been going down consistently in lacey hunt was rarely in making this an understanding what it implies and you know id like james church you know that i meet money velocity falling actually if you look at hyperinflation of the past the last the fall in because its just so damn much money out there that you dont need that you know you dont need a lot of bossidy to keep the economy were it isnt and so what youre really done is you shove more money into the system and you know that there are very forces going on. You know and we have other place you think septicaemia china that china price and internet and technology and so forth and so as a result you know its been somewhat masked but as you pointed out different people view inflation deflation in different ways i mean i think in Consumer Prices were going to have a mixture of both i mean i know for example we have a lot of inflation the price of eggs in my town or 300 percent but weve got a lot of deflation in the price of gasoline and so you know thats to me not whats really relevant in this picture here for all of us and busters i think that the relevant area to look at is is the asset. Area and thats where i got to my c. C. Thought which is laid up next to one report which is that you know were going to put your savings are going to sue me youre really half serious many dont certainly the government doesnt have any but 2 or 3 should have said if you have legitimate asked where you want to be were treated are Going Forward basis and i would strongly i know the 2 of you agree that you know the Precious Metals and pointer are really the 2 obvious places you want to be fair let me just read for a 2nd lawrence because i want to follow up on what comment you made there that the money velocity shows that too much money is in the system so lets unpack that for a 2nd because we did a stablished that were talking about debt and debt is not the same thing as money money is only really gold or bitcoin when you have a fact currency thats debt based you knew have a flood of that into the economy then we see the money velocity go down if this were actual money if the money if the free out if the currency of the dollar were backed by gold there would be a natural competition to own the gold to own the money and people would work to accumulate more money more gold and they would be answer part entrepreneurial and banks would lend business says and that money would end up in the system being lent out to new businesses and money velocity would go up because people are competing for gold backed or money backed by gold but because its only paper thats backed by nothing and the way to get it is to petition the bank to get a bail out and they print it for nothing and its worth nothing then you get this money velocity collapse because theres no competition anymore and america its all about positioning yourself in washington and proximity to the fed to get the free paper nonsense money and thats what theyre going to have a lot. City shows that to your point about gold bullion on the gold bullion is making new all time highs every major currency in the world by leaps and bounds bikes huge huge amounts except the u. S. Dollar because the u. S. Dollar is reserve World Reserve currency and has particular attributes that prevented from hitting new all time highs today but you believe it will be hitting new all time highs in u. S. Dollar terms soon and could be heading in between the 6. 00 to 20000. 00 per ounce level based on what exactly lawrence going to dig into that for us absolutely max i mean whats going on here is theres a very tight relationship between the federal budget deficit and the growth in the gold price and in my report which im sending out for free you can see that already and macro has done a very nice job of capturing that and what you see is that the federal deficit last year was about a trillion dollars this year at a run rate its running at about 6 trillion dollars so theres a 5 trillion dollar increase and the price of gold goes up 500 dollars for every 500000000000. 00 or a 1000. 00 for every trillion budget deficit so basically what this math says if this correlation holes is that the price of gold is going to go up by 5000. 00 as this deficit im full so that would imply 6700. 00 gold price you know basis todays price and you know i think its its likely to happen and historically looking at the charts if you overlay debt over a gold price going back 40 years they always go together except the last few years where theyve done an amazing job of breaking that relationship it looks like that relationship coming back which would imply 6000. 00 plus per ounce of gold yes absolutely and i think the reason they were able to break the relationship was they started another credit cycle and theyve been extremely effective it using tools. You know we all know they are to create paper gold and suppress the gold price which they know is the canary in the coal mine so the system theyre running cool now how do people get in touch with their newsletter lawrence are you giving away copies i hear yet copies of the newsletter are free just because i want more people on the side of the trade its my email address is l r o l l p a r g e m a to Edward Markey also send me to email which on a list every quarter i write something explaining how im doing the situation talks about gold stocks except and bet going to because as may not be quite as gold thanks for being on the kaiser report thank you very much max thanks they should check thats going to do it for this edition of the kaiser report let me max kaiser and Stacy Herbert want to thank our guests lawrence low part you can find him on twitter you can find us on twitter the kaiser report the next time. All that sugar has created excess body fat in the majority of people worldwide and that impairs immunity and therefore makes us more vulnerable to infection and during this period when were more isolated in our arms. We. Want to eat more sugar thats really the worst thing people can do to jennas coming in is is clearly is is just very clear that its those that her. Symptoms of over fast today out of committees and its those individuals that are coming into the hospitals its those individuals that are certainly leaving us. And. Ultimately because they missed all of this regulation its possible that there were medical health
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