A steep. In check out our t. Dot com for more news from around the globe because reporters next were here in Washington National and in the u. K. And ireland it is time for boom bust stay with us. I am asked kaiser this is the kaiser report lets start off with a quote from our einstein here who once said that compound interest is the 8th wonder of the world he who understands it earns it he who doesnt pays it this is a remarkable quote from my stein and it has so much to do with todays stock market volatility and the coronavirus all working at the same time and showing what compound interest is all about or what exponential. Algorithmic expediency is up yet stacy with a max were thinking exponentially in this episode a kaiser report during the exponential spread of the pandemic coronavirus were looking at the 2nd half of the chessboard as it is called and i want might want to add that today is my birthday so turning one year older in the midst of exponential pandemic which is hitting the mortality rates go exponential as you get older is not fun to turn a year older in the middle of a pandemic but before we get into the exponential growth of the pandemic lets look at the results of the exponential growth in debt over the past few decades chis report of course has been reporting on this non stop for the past 10 years and i want to look at these 2 charge is the 30 year treasury and the price of oil if you turn it upside down. You see the exponential its going exponential down 30 year treasury yield is well below a one percent oil price obviously wheat collapsed 30 percent on the opening on monday of this week the price of money whether its cash 2 year note 5 year no 10 year note 30 or no is approaching 0 so money has no value whatsoever gold is hitting new all time highs in currencies everywhere in the world that will soon be hitting a new all time high against the u. S. Dollar because it is Holding Steady its all the great it started out at 1. 00 its now you know hovering between 7. 00 and 9000. 00 per because. You know this is the store of value the safe havens that people are going to run to when money becomes worthless and negative rates become the norm so money is worth less than nothing its worth less than the toilet paper people are hoarding as a matter of fact toilet paper percy is now worth more than a dollar per sheet in some instances people are paying 67080. 00 a roll for toilet paper that is an exponential growth in the price of a sheet of toilet paper paper that is indeed correct and of course i do want to remind you we are in the middle of a bit of a pandemic and which youre supposed to wash your hands all the time and not touch your face so please max do not touch your face otherwise that clip will go viral you know everybody who touches their face goes viral i want to add because its my birthday max got me something even rarer than the gold ring youve got its the hanson of ties or that is also in short supply so again that is tied to our hyper exponential growth in sort of globalization that happened for example it was in just one year that 95 percent of the capacity to produce facemasks medical masks met and personal Protection Equipment was exported to china it happened one year in the last 10 years so the. That was an exponential growth in the export of our jobs but now we are left helpless and us so on top of that we have this exponential growth and debt that has left us very fragile the opposite of what nassim taleb would say is antifragile had we had the capacity for example to produce our own medical equipment our own medical supplies our own pharmaceuticals we dont have that so what we have is essentially controlled unplanned central bank run economy and that is where everybody is looking for answers to a pandemic which is just bizarre in the past week before as this crisis was unfolding we saw the st louis fed president bollard says credibility of Central Banks seems to be eroding so comparing it again to 2008 and the 2008 crisis when we saw gold sell off by 30 percent over the course of 6 months i dont think were going to see that this time because as he points out rightly so i believe that the fed has lost credibility and there is nothing but faith in the sense of a fee up currency world so i think Central Banks have been the biggest buyers of gold since 2008 so you have strong Hands Holding gold at the moment rather than those we cans of the hedge funds that had to sell off gold in order to meet margin positions back in 2008 so this is my instinct it could be wrong but this is what my instinct is telling me well you know people are losing faith in Central Banks so Central Banks replaced every institution and society they replace the church they replace the schools they place the markets with no price discovery and so its very this is part of the transformation of the Global Economy in particular the American Economy into whats called the American Market fundamentalism where its pure theocratic fanaticism believing in the sanctity of the central bank and now that disappear and now prices are finding a level. Well that reflects the true supply and demand of a genuine economy and those prices are going to be a lot different than what weve seen in the last 30 years its just bizarre to be in america and watch that this is a genuine fundamentalism everybody from the president to senators to congress to legislators everybodys expecting the fed to rescue the entire like to stop somehow a biological event a viral event that is spreading and killing people and i want to bring this back to because we have always been talking about the pandemic of money printing and the nonstop its exponential growth and that theres been an exponential growth and debt since 2008 mostly from china but also in the corporate sector in the United States especially the fracking and the energy sector. I suppose thats going to blow up rapidly but other sectors are going to blow up as well and whether or not we can print our way out of that i dont think so i think youll see intervention by the state with fiscal policies instead of monetary policies because no choice but in terms of the way markets can predict things we have this spooky event which was last summer june july when we interviewed royce a bog here and you know negative Interest Rates broke all laws of the physics of finance so we were asking him and hes a great thinker he runs full money im in a dot com and what he said that could possibly be the case is that. Negative rates were predicting a mass decline in population a mass extinction sort of event he didnt know whether it was going to be by choice people would just stop having children because it was too much debt for example or some sort of pandemic and its interesting that the markets the hive mind of the markets saw this coming like no matter how much humans think were above all other creatures on earth whether theyre insects that or the amazon rain forest or the creatures the 95 percent of species that we wiped off the face of the earth the fact is were still connected to them and we see we see this coming and we see that we have this 1000000000 year old instinct for survival and for whats coming so i think like where that herd stampeding or cross the serengeti there is the hierarchy theres only guy and guy is mother earth and its all one were all one all one living organism and humans started to behave as a cancer and so a guy is trying to push them out of the ecosystem and they can do this in 2 ways the one they have fears because which kills off the money and i believe the problem with money and Central Banks today is the presence of because which is the apex predator or in the universal cosmic economy and then coronaviruses just other obvious example of gaia depopulating planet earth the rice of. Intuited this you know with negative Interest Rates and it brings us to the 3 d. S. Remember look at the economy using your 3 d. Goggles diggler bill is a sion d. Dollars ation d. Population i dont think it necessarily had to be that situation i dont think that was the obvious outcome of this but i think it was because of the exponential growth in debt that we had no choice in the us and we also were unfortunate have trump as president at a time where he only believes in the price of the stock market whatever that is and it must go up exponentially. At all costs the fed seems to believe that as well as do all of the bankers that they serve because we there was a any time the market started to correct even a little bit they had to intervene and you know all that exponential debt is also playing out in the you know the political sector because what exponential that is is not only did we have negative rates in which time had no value but exponential debt was stealing from the future and we got so far into the future now theyre trying to issue a 100 year bonds and thats like stealing generations that havent been born but at the moment where theyre the boomers are definitely colliding with generation z. And millennial is and you see that in the political space you know the choice between neil liberal status quo biden continue as it is and Bernie Sanders he wants to tear it out down and bring in basically redistribute the wealth or redistribute at least some of the risk and all of that debt put it back on the Balance Sheet of the boomers from which it came but i think this is also that collision and in terms of political events you know hyper inflation is the most political event of all remember in 20082000 i report we covered everybody in the gold and money sector work saying well is it going to be inflation or deflation with all this money printing some a said it might be hyperinflation but there was never that doubt as bollard says you know that theres doubt now theres a lack of faith in the Central Banks looks as a fed has lost control 10 year u. S. Yields collapsed after fed 50 basis point emergency cut and its fed has ramped up the Balance Sheet there you see when they try to taper the ponzi scheme last year now theyre having to expand the Balance Sheet but at the same time again the hive mind the Bond Investors never believed that that was like if you turn it upside down that was exponential growth and basically the 10 year yield of the Central Banks of the cassar you know they approach it like a citadel and so theyre taking all that stuff into into. The citadel and are not yet at the point where were declaring that victory over Central Banks because they have the ability to expand their citadel exponentially and the boomer plague the coronavirus it targets 6070 and 80 year olds thats a way to pass on some hope to the Younger Generation also the boomers tend to hate bitcoin. So here we have a pandemic of the corona virus and the pandemic of bitcoin all targeting the 607080 year olds thats trying to pass the baton on to a younger more enlightened generation i might add that. I mentioned his Organization System risk they say he says for a new 50 year olds they should all not go outside at all thats gaia floria of course hes 60 or so anyway stay tuned much more coming your way dont go away. What is the difference between embarrassing gaffes and elder abuse joe biden certainly excels at the former and maybe is the big name of the latter we were told mention of Mental Health is limited to what degree is the public the right to know. No not ones that. Someone might have the definitions and. Then you cant really believe. How we think. Yes it would be if this. Didnt you know well that beach that you see. In the sketch still a miss one meaning i love this i not be deep but let me say this now tokyo find it is going to happen going to get. It is what it was because did a piece of dancing coral cultural shift from the premise. Welcome back to the kaiser report imax keyser time now to turn to steve keen hes the author of the bunking economics hes got an amazing patriotic page at profess or profit steve kean where you can basically become a student for much cheaper than going to any university away on the universities are no good steve welcome back good to him actually i like the resume that i do like to share now lets talk coronavirus you recently wrote that we need to start thinking exponentially in order to can tame the coronavirus elaborate on this what does thinking exponentially look like steve well its its actually a great old analogy max that theres 2 of them want to do is imagine you go. Willy growing on a pond and it dials and saws every day and it gets to be coming out are sent on it will kill off the office if you get to the stage that its 50 percent of the on how much longer if youve got one mode so if you do a lie it you know its not big enough it will end with it without a loss for that is it will increase by the factor of 6 dame and youll be oh well and i want everybody on knows that the king who has a mathematician who helps him win a battle and he says ill give you anything you want and the law says well i want this one granted ross on the 1st where the chess board 2 on the 2nd 4 on the eccentric cetera and by the time that he gets to that assistance square what he thinks he has a bogen he realizes discuss going to take over the entire kingdom so he hasnt kills thats whats going on with the current of ours it doubles at the moment by the looks of things about every 5. 00 to 7. 00 days which means that they will be every way there fossils many guises so if theres they say if you go to the side right off the world is infected lets say 25 weeks with 26 everybodys got. And therefore you really have to move as early as you can just lie down and if you. Decide im going to stay wife mother will you by doing that you increase the doubling talk or you might say one way to which and that has an enormous difference on how long we have to react and we really have to increase doubling by some or the order to wait 2 months if we do that we might actually go do it what was that saying before everybody gets this interesting they say people have difficulty in conceptualizing in a. Exponential way problem like this you know particularly interesting when you consider that for the past 25 years the entire Global Economy of the entire global stock market has been driven by social Media Companies that are driven by the socalled Network Effect which is the explanation of your oath of the network of the social media they refer to these things as growing like viruses and this is really defines our world is the Network Effect virus effect like growth of social media so then we get a biological virus and suddenly people get stupid theyre like i dont get it how can it double and how going to double in size every few days is i dont understand this seems to be a massive disconnect but anyway you have a plan steve keen to basically give everybody. A some money to stay home and stop the spread of the disease i believe this is already being done in places like china tell us more this is one case where the capitalist system which works brilliantly when you try to get as i want to study the bios will break down because this simply know why the market system will function this through a period where you have to offload everybody but Something Like a months and its particularly bad now because we have so many people on precarious contracts who have the lucky to have. 2 weeks of income like qana for it not to be connected so for wakes we have people paying mortgages with a load of mortgage that Household Debt compared to what it was back at the time of the loss and then which was back in the spanish flu and not tonight saying we have 4 times the level of household at that stage so if we went says the title for an act that none of this government and all since what would happen is the huge proportions of population to rent would file the pay their rent they would face eviction which would make the infection worse because theyd be on the straights and possibly that those around you have a mortgage it might be most days theyd be evicted from their houses the people who are the most withdraws will find that their debts are no longer worthwhile so they draw down their assets ought we can have a Financial Intelligence that makes the coronavirus us and in that situation a policy that i put forward about a decade ago to say we usually remnants of the 2000 that financial crisis what a cold mutton debt aaa that i think is now i never thought that n. H. S. This thing in a minute but i think now because we have this intentional one month right which we need to start with are simply play that one month reich would have to be cut by government giving money to everybody to say is enough cash to pay you rent by. A mortgage Small Businesses not just all when that when they go i just miss the restaurants bring in obvious example and. Created money and get your goodies back asked what francis well coles people spot as head of easing thats what we need to get over this process if we dont do it then the financial effects may be as devastating as it is itself right now you make an instant point there we are witnessing central bankers and leaders of the i. M. F. And financier and People Associated with wall street go on television and talk about ways to curb the coronavirus by printing money for them by bailing them out by giving them more quantitative easing by lowering Interest Rates around the world as we saw at the fed the fed statement at the treasury the United States says were going to fight coronavirus by job owning jay powell d at the Federal Reserve to cut Interest Rates by 500 basis points and to your point. Th