For some quite the same to accuse a particular country the latest on these stories you can head to our t. V. Dot com kevin owen he is coming in about 59 minutes from right now but in the meantime stay with us for the Financial News in the. Or this is the kaiser report where in paris you know so many people referenced the mary antonov quote let them eat cake and then you know historians have gone back and they said you know its actually my cake its brioche brioche you know that so i brought in actual poem my god what a mess we brought in actual brioche this is a brioche for the sliced there at the patisserie and so this is what she suggested that the peasants this should be eating because they had run out of pan you say this is a brioche is a slice of the nicer version of pan theres a few in the cupboard lets throw that to the peasants and maybe theyll shut them up but. I believe there had been a wheat disaster because of the. Volcano and i in iceland had blown and caused bad weather yeah that we learned about that in iceland and thats what they claim they like to claim responsibility for the way we are in the 29th same in this year lazio is barricading at the gates once again and folks are rising up for good reason what have you got in your little notes there because we havent actually evolved since then because remember during the french revolution you made a film about this with gold money dot com and about john law and acid not because acid not was basically a fiats currency here in france that was backed by all the property that they had seized from the Catholic Church as a derivative it was a derivative and nowadays i realized it dawned on me with all these negative Interest Rates all of these crazy economic policies emanating from our governments but at particular from the Central Banks is because we actually do have globally and afaik not because. Most people think that banks lend to businesses and thats what theyre doing and everybodys looking at the e. C. B. To cut rates have that they can lend to businesses and grow the economy but actually over 85 percent of all bank lending is for properties and property bubbles so were stuck with that right i mean thats a transfer payment and they use derivatives these modern channels of banking and conduits to collateralize the property in the modern cars the french government the time simply seized it via the Catholic Church their property securitized it and sold their currency back as such but here in the 21000 era they did they do it using reverse collateralized morgans obligations and fancy wall street products but as you point out so so well there this is a replay of all the elements that led to the french revolution using Financial Engineering and securitization and the riveted to debase the currency and the currency is being debased well you reach an end point of how much the value of the property can go up and with the asset not the french people demanded they print more of these astronauts so that the property prices can continue to rise because they didnt want them to go down so we have that Global Situation right now it did it was able and possible because we went off the Gold Standard in one 1071. 00 at the same time it wouldnt have worked without the fact that the boomers hit the right age they were entering the workforce at that time and that was a massive population so you could create a ponzi sort of scheme heres a headline to prove my theory that what were seeing right now is a kid in to back at the assoc not in the collapse of the asset not in the strife that followed the reign of terror that happened here in france banks are now referring people to for. Bank to help them pay their mortgage this is in australia so its called food bank South Australia has been approached by banks tree for their clients to the charity in the hope that it will prevent people from defaulting on mortgage payments not let them eat oreos but let them eat food bank this is a real up to me moment another replay so its got a couple of almost verbatim replays of the revolutionary times of france and not only are they collateralize ing property as you point out its no fat theres nothing reinvented here its all property backed and now instead of letting them eat slices of brioche theyre allowing the folks to use their foods to know theyre subsidizing the food banks to so they are bank will food so they dont default on their mortgages these are normal middle class upper middle class and even indeed upper class people but theyre stretched they have 10 x. That they might be earning a 1000000 or so their dollars a sisterhood bank to get shooed them food coupons so they dont default on their mortgage theyre calling it vouchers these banks the bank you have a mortgage with the bank the bank is concerned that you are not able to meet that mortgage because your income has not gone up and the prices continue to rise so theyre creating vouchers that they give to the. Virtual reaction virtual brioche token as it were and as a child care and i see oh yes of brioche yes on the theory and block chain its near c 20 token and theyre throwing it i see we found a use case for a ferry and finally say its halleck it can be happy so here again we had. 10 years 20 years and australia to feed this property bubble there to keep that going because if youre not working in the commodities business in australia then youre in your property speculator and you have the asset now so heres the unusual situation food bank South Australia chief executive Greg Pattinson told a. B. C. Radio adelaide it was still exploring how the program would work quote thats what were exploring with some of the banks for the moment it hasnt started yet because we are still working through the process weve never been approached by Financial Institutions in the past and the banks to their credit are doing the right thing in trying to find a way of keeping people in their houses now in the Medieval Times you have the church and then a lot of property and here you have the church of Central Banks and theyre treated as saints an apostle they definitely are infallible banks have been determined and deemed to be infallible they are not punished by anything there is no mortal that can ever punish them because they say this with knights and our whole fabric of society and the system around us would collapse should we question today too big to fail yes like god gods too big to fail so in the sector but this is what they said at the time pre french revolution that they were infallible these corrupt. Priests that were wandering around europe at that time you know they were shaking down people for indulgences and nevertheless here we have another let them eat brioche moment and i want to turn to another part of this this trying to sustain this ass ignaz system that we have around the world and you had predicted here in christ report that cutting Interest Rates down to 0 and then to negative that it would cause deflation and heres a headline from bloomberg Central Banks negative Interest Rates were supposed to increase spending stop deflation and stimulate the economy. They may have done the exact opposite so this is based on a study from the university of bath in england and you had to wait 10 years after kaiser report told you this would happen and here theyre saying yes they dont credit us but we were right right patrick then and Danny Blanchflower another economist and former central bankers argued that this type of money printing would create inflation however what it did was it kept a zombie banks alive and they pushed out companies that could create actual jobs and innovation and genuine taxable inflation Economic Activity and by catering to the zombies of the zombies got bigger and bigger and as such became a black hole of debt so the black hole of debt the cheap rates of negative rates are increasing that black hole of debt in thats deflation and now negative Interest Rates are soft default on sovereign debt thats also the place but again go back to my theory that this is an asset not they were never ever going to lend to businesses businesses dont exist in this world where financial ice world what they ran out of was greater fools back in the 1980s when we began this bond market bubble when Interest Rates were at 20 percent and now theyre down to 0 and even negative what we had always was a greater fool to roll over your debt who could back in the eightys you had to have you know take out a mortgage to 2 and a half times your income you had to put 20 percent down then they cut the that down to 3 percent down then to 0 percent down and even they would pay you to take a mortgage they would give you the deposit essential and they would loan you the deposit and add it to the mortgage so you came up with that then you could always roll it over and well because Interest Rates are lower now than they were in the eightys you could act you dont need to just borrow 2 and a half times your income you could do 5 times and then 7 and then in Central London is 12 times. Your income so theres always been a fool willing to say ok ill take out 12 times my income what can go wrong because i know in a few years time maybe somebody will do it for 15 times but that full never came along to your point so the lending is spent to property and Property Assets are collateral izing ever greater lending into ever grading misallocated resources into inflated property bubbles yes this is iceland you know iceland the banks lent to the property markets they used the collateral to create this enormous bubble and then a pop in the entire country went bust this is being done on a global scale what we saw in 2008 the world came to a crashing stop and went under ireland was faced with near extinction there was this huge multi 100 trillion dollar bailout and now were at the end game about where the Property Values that were inflated to these incredible values where youve got the Citadel Hedge Fund ken griffith buying a flat in new york for 280000000. 00 right so you know if theyre all short and heres the titanic is the World Economy is the titanic in 2008 it hit the iceberg. And started the saying and heres can grip it with us 280000000. 00 it goes up in value. Ok what has perpendicularly thats a thats for now when we reach to a shortage of fools thats whats missing in the world we need to grow more fools and in fact in the United Kingdom when you know theres a help to buy scheme and remember George Osborne introduced that in the u. K. His mom loves the program and the fools that bought that are using it love the program but other people like kaiser report might suggest it was a ponzi scheme we have the us it now and what are they doing with the help to buy scheme 6 years after we called it a ponzi scheme but the fact is the government is having to say well now you can take out a 35 year mortgage because member thats how we had greater fools you had less deposit down you extended the mortgage 3 times and you lowered Interest Rates so now our app and game we know what happened in france may be this could well if you look around the world you see the unrest that its the beginning of that sort of thing when the assoc now falls apart right instead of having one revolution in france or in the Russian Revolution of the American Revolution in a global insurrection against banker occupation. Right and theyre all one joining up forces the g. L. A. Shah will join forces with the folks in hong kong when horses and arab nations and its all the us and not essentially that what they are is going to see you know us a new currency titanics last nightmare so we have a lot of the 2nd half remember. After almost 2 decades of war knocking patient American Military involvement in afghanistan appears to be winding down a deal with the taliban will see majority of american troops leave while still allowing a sizable contingent to remain just what exactly is washingtons geo political interests to be in afghanistan americas longest ever. Welcome back to the kaiser report im max kaiser time out of turn to mark the lack who publishes the annual in gold we trust report were going to get into this massive tome quickly mark welcome grace to have you on now youre from lichtenstein 1st of all i like the way you say lichtenstein how do you say it the listener. Call affair like im in a crazy movie something well we are in paris you are from vienna so youre austrian. In more ways than one many of our guests here on kaiser reporting who watch the show call themselves part of the Austrian School of economics are you an Austrian School of economics person or what does it mean to you well i would say so i mean its quite important for our development detest being very deport important the Austrian School of economics i think helps to really see that this is in the turn a twofer way to view the Monetary System so its not only central banking it doesnt have to be central banking this is there a leap of like mainstream economics just takes that as a given and i think thats perhaps one of the biggest atlanta just if one studies the Austrian School of economics just that one really realizes a this can be another way and the central banking may not be the holy grail for a day or big fan also of the big standard that book safety in the most i am yes and he goes into detail into his view of the Austrian School of economics and hes a real he really hates keynesians and and their idea of printing money ad infinitum into that point there are over 17 trillion in negative yielding bonds in europe in what school of economics is this or do negative yields defy the laws of time and space and finance and other words. This is definitely not Austrian School definitely not i think its basically a function of that based momentary system which we have which basically. Brings us to a point where we have an ever expanding amount of that and then we need to central bankers to kind of try to inflate the way out of this and we lend that at the point where were pretty much at the end of the road in terms of. Youths into the in terms of Interest Rates and we really need to know that the central bankers have to really try to reflate the the system in a new kind of way and theres all kind of interesting debates going. Currently which is quite interesting to follow i think we are at the verge of the new period to go with this reflation will really hit the new key. To very little starkweathers a little bit of face so inflating out of debt so money is constantly created to pay down the debt that youre creating and you create more money to pay down more dad and theres this vicious cycle and if you know it we know because they cant tell a fact if youre a friend of the banker and youre the 1st in line to get that fresh money you can make a lot of money in buying assets you know you can buy a chalet in liechtenstein you can buy fine art but if you are not part of that group by the time the money gets down to you youre paying more for groceries youre paying more for gasoline so you experience that Price Inflation and it creates us an enormous gap between the haves and the have yachts and the have nots right and south but this negative rate seems like more of a defaults and outright default on a bond then an attempt to inflate ones way out of debt i see you nodding your head what do you think i think one can make the argument that its kind of a. Soft the fold i mean you get you know 0. 09 on the dollar bakewell even less if you have a negative one percent so thats basically a partial default sure but i think the main intention is really to push this currency on force and really i mean in switzerland and least on where we have the swiss franc we have pretty negative Interest Rates already and this is a huge huge problem obviously for us that managers for for all these pools of funds they really need to do something with this thats or obviously they missed it in equities bones less and less in the turn a tiff Corporate Bonds listen listen alternative and once this kind of hits the u. S. Dollar i think really that this really an interesting environment for for gold and bitcoin you know its almost like statutory financial all crime being foisted upon lets say Pension Fund Managers who are obligated by law to buy Government Debt if that Government Debt is a negative yielding debt its a negative Interest Rate that they have no choice they have to buy that debt even though it means that theyre bankrupting all these pensions and so where do they get away with this because the social contract you know where in the europe right now we are in paris where in home of really the whole idea of the social contract and the idea of the enlightenment and if the social contract is broken according to john locke the people must revolt you know were seeing that we see this is all we see in hong kong weve seen occupy wall street weve seen this all over the world what we call the global insurrection against banker occupation would you would you put it in those terms i get asked this qu