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 and 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 of this era and wrote about death it 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 are capable of it its not always what david graber would want to show because shes not. And as a public intellectual so you dont want to show that side of yourself too much but privately and walking in me and 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 way is 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 and graber one is stridently procapitalism the other anti but each recognizes 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 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 audience 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 for 5 years ago where he explains the history of u. S. Leverage 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 dr Michael Hudson yet 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 steve 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 a city just 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 war 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 fencer 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 brace now 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 and to a large degree now i have perpetual live at home so the dynamism that would be coming with new household creation is dead in. And to a large degree we have perpetual all money printing money and money printer 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 collective intellectual all that 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 a condom 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. Introduced 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 seventys trap where theres going to be conflict because that where we call them economic compare. Are the ones at the wall are jobs u. S. Trade deficit with china wider that 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 right through these policymakers president s think tanks that are 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 World 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 force congress to put them into the w t o. As a developing nation so they get to impose huge tariffs was because their euro was being introduced and 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 it 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 much more coming your way go orange. Theres a war of the most recently of the police or the most amazing issue to the. Center but it sounds the guy. I am slowly as a name for a list of. The most. And losing this war with them is so cheap that those who dont use it. It boils down to his belief the book with their stuff just doesnt let them sleep he was obviously. By the up in the media of course free. And. Welcome back to the kaiser report im max keiser time now to return to our conversation with tommy cost of crosscut capital tabi welcome back max price 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 both get to the g. O. P. Hala text of us in china also in a 2nd but let me get your comment on this Berkshire Hathaway Warren Buffett they invested 560000000 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 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 of 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 by any means its just its once seen the company that its worth 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 theres no theres not much of a show aside here for only bonce and who cheat. A lot of the environments one turns of her for construction when he consumerist varity strategy i think that the another issue that is also going to be probably in the news very soon is whats happening with the government not 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 ringback 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 i mean history question but certainly that is what were doing prefer to focus on my knee my knee matters in general gold and silver is the pain part of performing today and we have to be called 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 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 nick. Variance say contraction or they have to print some more money up and by keep buying it for themselves to avoid the contraction but this sends 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 would be fighting deflation today its just its 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 even Precious Metals all in the ass. That that serves as as an alternative for the Monetary System so i think to dissolve and he sure in more and more the Federal Reserve will be forced to participate more in this. Debt issuance that were going to see in the government here very soon like i said theres about 5 trillion dollars of bills. Treasury bills senate 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 treatment dollars a fetus or trillion dollars they have for each in cash balance today which you left out if 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 to date 5 i think thats why they are hoarding a lot of cash is to us 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 it doesnt need to be you dont need a few methods ishan to come up with this this is 8. 00 trillion dollar so they would be mature enough less 12 months im wit with going to happen is the Federal Reserve is 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 in treasury any causes you dont surprise we might see an environment where no you dont ride 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 there are still 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 are present 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 taking the bat fraction will produce a greater negative number right because if it was same place it goes to 5 percent and theyre like a battle we want way up top 5 percent subtracting from the g. D. P. Number now youve got to make it a 4 percent right now they it and i right in saying mass and that they there are basically psychotic in their approach tommy 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. Maryland also have a 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 do you see 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 toddy 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. 00 to 16. 00 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 it happened wolf wife has a new up 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 and now its probably close to a clue to a trillion dollars of net debt and so you know and were not seeing any proof that 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 chile 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 the species with a few currency destruction also unfolding and so i think thats kind of the environment it actually looks a lot like the 77 and if you remember youre talking about Commodity Markets you know have having a link with inflation lets think about this if you have any situations where geopolitical issues you 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 Market Reaction power right tabi koster from crest cat capital thanks for being on the kaiser report thanks max really appreciate the invitation and look for talking to you again absolutely ill 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 keiser and stacy arutt like to thank our guest tommy. Crest kept capital if you like get in touch tweet us at kaiser report until next time by your. Was a pandemic no certainly no borders and obliging to nationalities. Has emerged the we dont look like seem. To be. Judging the 2 commentary crisis like this listening to. We can do better we should be better. Everyone is contributing its your own way but we also know that this crisis will not go on forever the challenge is great the response has been so many good people are helping us. It makes us feel very proud that we are in it together. It. Seemed wrong. Just dont call. Me. Yet to shape our disdain to educate and indeed train. The trail. When so many find themselves worlds apart we choose to look for common ground. The world is driven by a dream shaped by one person with those great. Military things. We dare to ask. Trade and investment to become magic spells to come to economic development. Most people think about trade they think about goods and services being exchanged between countries and the invest for a chapter of a trade agreement is about something very different but what one investment leads to toxic manufacturing that destroys sacred sites all ruins the environment. That means local communities that are being poisoned if they object if they do anything that the company feels is interrupting their profits they can be sued. The nationals are taking on the whole nation Philip Morris is trying to use i. S. T. s to stop oregon by implementing new tobacco regulations aimed at cutting domestic smoking rates a fringe company sued egypt because egypt raise its minimum wage democratic choice over trump Corporate Law joining us as we try to find dont want to. Despite germany saying its the refusal of the russian opposition figure out explain of ali was poisoned with russian doctors who 1st treated him claim that special fiction almost show them all this evidence. Senior figure. Rested on the border with ukraine but in different versions of events president lukashenko tries to shed light on the incident in an interview with russian journalists. The british governments handling of the it has forced Many National Health Service to consider quitting to a new poll. For cooler thank you nothing ya think
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