Himself and a great author and you know thinker who explores ideas and is willing to be challenged just like david graber was wrote David Greenberger he was a real intellectual very real not one fake cell in his brain not one fake bone in his body he thought independently he was monstrously original he had intellectual courage the world seems much smaller today than before september 2nd david rest in peace yeah he is a intellectual giant i guess you could say that era and wrote about death he took a point of view which i guess would some would say would be anticapitalist in a lot of ways and he explored that vigorously i remember a very long walks with him through the city of london and he would reveal his extraordinary sense of humor hes a very very funny guy as most highly intelligent people are they do. Who are capable of it its not always what david graber would want to show because hes known as a public intellectual so you dont want to show that side of yourself too much but privately and walking in mean we have great fun you know playing around with words and concepts and things like that and just probing these things in a very funny ways a very funny man was well he was born he was 59 years old born in new york jewish and you know he has a lot of humor he was that was the unique thing about him just how funny he was and how great a listener and you mentioned that he was anticapitalist before we move on to some of the content of the show because of course he would want us to talk about the world and the economy and the financial fraud and all that stuff is somebody mentioned that in a tweet this guy name rabaul one of the great things about how led and graber one is stridently procapitalism the other anti but each recognize his real intellect and communes with that so thats what were trying to do by going orange rather than going dark is you dont want to you know a new dark age you dont want to shutting down if your mind you dont want increase in censorship especially as we enter into deeper level ization because youre going to see more and more censorship of the Financial System the Banking System the the monetary rails around the world the unit of accounts you can see a lot of censorship there you going to see a lot of censorship as we head into this already like both sides are already screaming that its rigged and theyre at the other side going to steal it and its a legitimate i mean both sides both the leading democrats and the leading republicans are saying thats right one must be like a chameleon and if we get to go orange to keep the message fresh and alive thats what well do were not ones to roll over and play dead and keep giving you the truth every day every hour every minute every block of big coin you got it and speaking of the passing of david graber that is why and where and why i did promise the audio. Speaking of truth i did promise that we would not wear white after labor day but here we are and thats for him and actually go watch go to this search function on youtube and look for our interview with David Greenberger during labor day 45 years ago where he explains the history of u. S. Labor day which was created in order to basically distract and take power away from a day he was a very much in the tradition i would say of a dr Michael Hudson yes another left wing economist you could say loosely but deeply intellectual who makes very compelling arguments and really broadens the debate and adds in the credible richness to the debate as you brought up Michael Hudson i will say that we are going to speak to my thoughts and and see if he were going to have a kind of memorial here in kaiser report were going to talk to both of them so that is going to be coming up in the next few weeks now speaking of his book debt the 1st 5000 years here as one of the results of the that continuously unfold as you look around us and that is a majority of young adults in the u. S. Live with their parents for their 1st time since the Great Depression so as you see 52 percent of 18 to 29 year olds are now living at home yes its a remarkable statistic and its just goes against everything that i remember growing up when the objective was to get out of the house as quickly as you can assume he turned 18 where max was at the lowest point when you went living on your own in new york city started as a stockbroker as my 1st job out of college in 19828 year career you know and slugging it out as a young you know in my twentys learning a lot and bracing a life. And so to be in your parents home during those key years its itll bring the american average up to where around the world you see Different Countries they have this phenomenon and in italy i believe its in the country in the world were people stay living with their parents told the oldest its in the high twentys early thirtys and so i guess in the us is going to be in that category yes the household formation as weve been following you can see its been declining over the years in the past decade or 2 as that huge accumulation of debt which you know if you look at david greene was book of 5000 years of debt in no it was always forgiven it was always we always wipe the slate clean and were not doing that anymore because the world is becoming so you know basically its this whole thing or ship this resistant to any new ideas this resistant to change and the wanting to hold all sort of power and that includes like you wont allow these debts to to die because theyre they are being held up and therefore all these generations below them and you know we obviously have a pandemic and a lot of young people do live in cities or apartments and part of this trend of them going to live homeless because their parents might live out in the suburbs or you know the countryside and you get some more fresh air and space and you also save a lot of money because you know unlike the previous generations when you were 181020 there was no such thing as work who has no such thing as work from home you can stay at home and live off mom and dad but you couldnt work from home we had to go where the action was so it was either you know wall street or some other place but registering into this strange space you know i think about in the ninetys in the beginning of perpetual copyright and so are copyright essentially laws become perpetual and intellectual creativity is dead. It and to a large degree now after patch will live at home so the dynamism that would be coming with new household creation is dead and to a large degree we have perpetual all money printing money and money preacher gober so we have this deadening of Economic Growth because the the printing of the money keeps the Zombie Companies in the zombie banks alive so were were basically burying ourselves them for in perpetuity you know we have reached that weve crossed over a mile in my belief to a point of of collective intellectual death well speaking of intellectual death one of the things that is the mainstay of why all these Young Americans 18 to 29 years old are still living at home with their parents is all of the debt that they have had to incur in order to get a University Degree which you need for most jobs in this icon even though they dont actually have like the technically he wouldnt he shouldnt need a degree to do a job like management donald but nevertheless you need that here because of the whole financialization of the economy so you have that debt but you also have what was set in motion under bill clinton and you know you could be de platforms in this economy for even talking negatively about bill clinton but the fact is like he did. Introduce biden by the way and many other you know huge politicians of our day today because of course they still stay in power 20 years later but the fact is that they sent our jobs they allowed for our jobs to be sent over to china and this is the like the intellectual yes it the intellectual yet idiots as not seem to have calls it is this weird paradox and conundrum with china in which were in the middle of a 3 cities trap where theres going to be conflict because that where we call them economic compare. Who are the ones at the mall or jobs us trade deficit with china wider than may 2016 when donald trump accused china of the greatest theft in history the u. S. Trade deficit with china was 9. 15 percent wider in july 2020 than may 2016 when President Donald Trump accused china of ripping the u. S. On trade brighter days policy makers president s think tanks their idiot savant but mostly it is very little savant yet so you know here you can bluster all you want but the fact is if we end this trade deficit with china we end the us dollar as worlds reserve currency and if we end the us dollar as worlds reserve currency we and the exorbitant privilege that the intellectuals on twitter in the think tanks in washington d. C. The lobbyist they lose their exorbitant privilege the ordinary american does not they dont get to enjoy the exorbitant privilege certainly not at this point for a few decades they did enjoy lower and lower prices at walmart but that is at the end as we see because even Monetary Policy has to go negative they have to give away free cash because because of this situation but here if we close close that trade deficit with china how do we get dollars to the rest of the world its not possible like our part of the reason why. Bill clinton forced them into the detail force congress to put them into the w t o m a as a developing nation so they get to impose huge tariffs was because their euro was being and traduce and b. If the euro is being introduced the dollar was going to have a problem being reserve currency because they needed people to take dollars they needed overseas you cant have a reserve currency without that so you have to run a trade deficit thats why china doesnt want the u. N. To be the walls reserve currency because they dont want a trade deficit right and people want to assign blame for something that happened in the last 12 or 18 months but you really have to look at the past 3040 years to understand fully how this thing got so messed up were going to take a break and when we come back 6 much more coming your way go orange. Join me every thursday on the alex im unsure when ill be speaking to us of the world of politics sports business im show business ill see you that. Seemed wrong. Why dont we all just dont call. Me. Yet to see how this day comes after. And in detroit. The trail. When so many find themselves worlds apart we choose to look for common ground. Well the pandemic no certainly no border is just blind to nationalities. As americans we dont come with territory we dont have the facts in the whole world peace to be the chief. Judge of. Common every crisis at least. We can do better we should. Everyone is contributing each in our own way but we also know that this crisis will not go on forever the challenge is creating the response has been masked so many good people are helping us. It makes us feel very proud that we are in it together. Welcome back to the kaiser report im max keiser time now to return to our conversation with tom because of crosscut capital toddy welcome back. Rights are going to get into you know how you play it right because youre youre a money manager and you allocate capital and youve got to get exposure and increase folks wealth and well talk about where youre allocating capital but to pick up on some of these themes here so wont will it get to the g. O. P. Hala ticks of us in china also in a 2nd but let me get your comment on this Berkshire HathawayWarren Buffett they invested 560000000. 00 of barack resources the gold company the ohio police and Fire Pension Fund voted to allocate 5 percent of their of 16000000000. 00 portfolio to goal you got rate dahlia out hes into gold i believe 20 percent in gold bullion Paul Tudor Jones isnt a gold and bitcoin so. This is what the smart money is doing and i take it this is also what youre doing right absolutely i think those news that you refer to are all very symbolic for this area for this industry and whats important to note here is when you look at the mighty space today and you aggregate all the market cap of this entire industry still more than 3 and a half times moderate and then just more apples Market Challenge and this is not perhaps. Just a punch on apple but by any means its just its one Single Company this worst 3 and a half times and entire industry that is the only industry the should benefit from all this economic numbers that were hearing you know i think i think everyone see that there is no theres not much of a show up side here for only bonds and what sheen. A lot of the environments one terms of her full construction when he consumerist varity strategy i think that another issue that is also going to be probably in the news very soon is whats happening with the Government Debt issuance weve had somewhere close to 8. 00 trillion dollars worth of treasury so be maturing in the net in bed in a 2021 what does that mean theyre going to have to roll those as they roll those someone is going to have to participate in this market if there is not enough funds that want to participate in this you can be sure that if every Service Going to have to be forced into buying some of that in which means monetary expansion to suppress long term rates we call this a super charge environment as were as we get into a very very challenging period of no Economic Growth at all in the u. S. While weve probably beached some sort of credit exhaustion here locally in terms of how much debt is in the system already so it is a history of question but certainly that is what were doing prefer to focus on my knee to my knee matters in general gold and silver is part of Performance Today we have what we call buy gold and sell stocks idea which is if youre looking for growth if youre looking for something that would be probably the next growth stock type of investment that probably will be your tech stocks in the next decade or so i believe strongly that whats going to be that its going to be the mining space and so i think if im right there is it doesnt need a lot of influence in terms of capital to move the needle it completely change this industry i think were on the Inflection Point for that right lets talk about this term credit exhaustion and in the context of what you just said there the Federal Reserve bank and the u. S. s all the major Central Banks in the world have this problem of maturing debt that they have to either let expire and knicks. Variance a contraction or they have to print some more money up and by keep buying it for themselves to avoid the contraction but this ends up being a giant ponzi scheme as weve talked about on kaiser report for many years as youve talked about it weve said he cant taper a ponzi scheme so he now that the decision of these bankers will be to print more and keep monetizing their own debt quantitative easing is the wrong term because that suggests that its a temporary measure but we know now that its a permanent measure and that its debt monetization which again is something characteristic of a quote Banana Republic this is what america used to criticize south american countries for doing oh youre buying back your own debt thats up and our republic and i heres america and all these other Central Banks doing the exact same thing now the fed owns about a 3rd of all the bonds backed by home loans and youve tweeted about this whats the problem here thats a big issue especially with regards to Inflation Expectation in which the Federal Reserve owns about over 20 percent of them market so the Federal Reserve almost is capable of manipulating Inflation Expectations if not im not talking about c. P. I. Im talking about what the market price is in this as expectations of inflation i was joking around you know lets say youre in mars for 5 years and you come back to earth and i ask you look max you know we just printed somewhere close you 3 trillion dollars in the last few months we took rates to 0 and we have deficits now in the year of world war 2 levels. Would you ever think that policymakers will be fighting deflation today its just that certainly were seen as just this dovish this on top of what weve done already and given the imbalances we have in the system its you know its hard to not home gold in an environment like this or any Precious Metals d all in the ass. That that serves us as an alternative for the Monetary System so i think dissolve and he sure in more more of the Federal Reserve will be forced to participate more in this. Debt assurance that were going to see in the government here very soon like i said theres about 5 trillion dollars of bills. Treasury bills and today which is a record level it really isnt precedent weve never seen anything close to that in the past and you would think why are they not you know issuing a lot of Long Term Debt given Interest Rates are so low i dont know that answer either but there is also another thing that is happening because of that that the treasury is also hoarding a lot of cash to deliver cash balances almost as large as what its going to be probably closer to trishul in dollars a think it should remain in dollars they have for each in cash balance today which the last time he did that was also an all nighter or wait which was also a period of when they issue a lot of treasury bills i think were in similar place today 5 i think thats why fearful reading a lot of cash is still to e. T. S. They need the money for having issues to issue those those freshens and grow the debt but this is going to become a problem in the next year and it doesnt need to be you dont need if youre a mathematician to come up with this thesis 8. 00 trillion dollars that they would be mature even last 12 months away with going to happen is the Federal Reserve its going to have to explode to the upside in order to hold those if we do see an environment where large funds and investors in general are starting to run away from treasury markets this is an important point because as you start to sell a treasury causes you dont surprise we might see an environment where no no you dont surprise but gold can actually go up in an environment like this why because thats just people getting our treasuries to buy Precious Metals there is a very. Thats probably the most probable scenario here that we can see in the following months its that type of dynamic happening in the markets lets unpack this a little bit because you mentioned that they print and print and print but theyre still to deflation now lets talk about the. Lets talk about Interest Rates right because Interest Rates are now negative and you get there by taking the g. D. P. And subtracting the inflation rate that they state lets call it the c. P. I. Just for the sake of argument and you end up with a negative number and that negative number is going to as you say put a lot of pressure on holders of bonds 1st i want to dump their bonds and thats the flame i think we can agree that that is definitely deflationary at the bond markets collapsing in a negative rates or president people are not incentivized to own bonds but heres the question. This central bank say they want to avoid this deflation they want to avoid these negative rates but by encouraging the c. P. I. And encouraging Inflation Numbers to go up. There darron ting that that fraction will produce a greater negative number right because if that lets say in placing goes to 5 percent and theyre like thats what we want way up top 5 percent subtracting from the g. D. P. Number now youve got a mega 4 percent right now they in my right im saying mass and that they their are basically psychotic in their approach yet its also the g. D. P. Deflator houses its an issue there but it i think its again all linked to commodities markets and in terms of that i think its going to be very difficult high Inflationary Forces if we get to an environment where commodities certainly the. There are a lot also i mean i think thats that think thats thats a good answer now i mean to skip ahead to that china here for a 2nd because they promise to talk about china and theres a little theres a lot of geo Political Tension there and deceit to globalization accelerating over the coming years as the u. S. And china tension increases as both chinas tech supremacy grows and is that trade relationship with china unravel Going Forward so how do you see the china u. S. Relationship Going Forward tabi yeah well i think that the city strap idea is certainly a play in place here and from group grand allison in which 12 rising powers power challenges the established power in 12 to 16 times weve had a war i think that thats probably the case here again probably more of the cold war environment in which if you start seeing especially Domestic Social unrest it would force a lot of other khana be stupid to bring up this nationalism idea to kind of ease up on the issues domestically i think thats very possible to happen world wife as a new arch friend i think ill so you know this whole idea of the chinese credit bubble he might view probably one of the largest bubbles its seen in history the whole premise of that. Its the amount of debt that they have built up especially in and Housing Market in china in my view weve seen Property Developers losing money every quarter while they accumulate over almost an hour its probably close to a clue its which trillion dollars of net debt and so you know and were not seen an improvement when you reach that level of credit exhaustion i was referring to its really hard to translate you know credit growth into Economic Growth and thats certainly the case in china today which has being responsible for over 60 percent of the Economic Growth weve had is it will financial crisis so if china cant grow anymore as in the same wow that it was growing before with does that mean for emerging markets emerging markets overall especially places like brazil that actually export a lot of products to china often have issues too so theres going to be a lot of problems in terms of that might view as as all this issue swiss if youre a currency destruction and also unfolding and so i think thats kind of the environment actually looks a lot like the seventys and and if you remember youre talking about Commodity Markets you know have having a link with inflation lets think about this if we do have any situations where geopolitical issues he started heat up that certainly can create a dysfunctional. A supply environment for commodities too weve had many wars actually cost commodities like oil use search in the past the could be certainly the case here again so i think commodities are poised to move a lot higher and i think precious mows are probably going to be the leader of. This this Market Reaction all right Tommy Costner from crest cat capital thanks for being on the kaiser report thanks spex i really appreciate the invitation and look for talking to you again absolutely be following you on twitter my friend all right and thats going to do it for this edition of the kaiser a par with me max kaiser and state fair it like to thank our guest avi. Cost of cress cat capital if you like to get in touch tweet us at kaiser report in the next time i go to. Use theres a war of the more 1st musical new music. That sounds. Only isnt there you clearly missed. The. Boat both of you so. The point was to be used to move the book with. Those with use of these is the belief. But. Of course free. Trade and investment to become magic spells to conjugate cannot make development. Most people think about trade they think about goods and services being exchanged between countries at the end of fast chapter of a trade agreement as something very different but wont when investment leads to toxic manufacturing that destroys sacred sites all ruins the environment. That means local communities that are being poisoned to thing object if they do anything that the company feels is interrupting their profits they can be certain. Of taking on the whole nation Philip Morris is trying to use i. S. T. s to stop the oracle by implementing new tobacco regulations aimed at cutting domestic smoking rates. A fringe company. Egypt because egypt raise its minimum wage democratic choice but trump corporate long joint says we try to find dont want to touch it. You just have to fly between 2 kinds of moon and as fast as you can. Do much any closer to the produce which the british or the. Mass nature for from the nature. Of the engine restores importance to the spent force moral russians in racing is competition in the extreme whoever follows the specified route between the ones with the fastest time just beautiful utah is reasonably good youre going to go there but you should check it is really cool should be read literally. In the headlines this tuesday russian doctors who treated opposition activist Alexei Navalny and dismissed german colleagues darknesses of knowledge of poisoning as fictional they were doing it would have killed him within hours moscow meanwhile points out boylan has yet to provide any factual proof. Most british doctors plan to quit the National HealthService Using government failures in handling coronavirus according to a new study. From the court thank you nothing yeah. The number of assaults known as spits out of British Police doubles during the pandemic