tv Documentary RT July 26, 2018 7:30pm-8:00pm EDT
ponzi if you can buy that you can have a planet named after you janet is it a star or star only a star all right and then i think in my real estate on the moon sure every thought about naming a star or some real estate on the moon after your book i think that certain equities and certain bonds and certain real estate properties are priced as high as the yeah it's also about like the market looks like it's going higher and higher i mean what's happening it's all valuation if you can buy stock stocks back and pay yourself because illions you know borrow money from the fed for free or borrow money at zero interest rate zero interest rates and rebuy buyer shares back the shares go up and you get a gigantic bonus right so does that work it works until it doesn't so right you know like you saw netflix it recently had the earnings announcement and so the stock dropped sixty dollars in the second row you know that's a big problem if you have a big portfolio of something like that if you're prepared for that kind of wild ride volatility you know you buy a stock that has no free cash flow no earnings but the price keeps going up so just
for those who might not follow that exactly let's just walk through it a little because it is interesting so i fear an executive at a company of options to buy that stock in the options are given to you for free and then you can borrow money from the fed first actually fray and buy back your own stock and then the stock price goes up and therefore your option and then you cash out those options into the public marketplace and it just printing money for yourself billions and billions and you've won the lottery mate yeah that's exactly right so the way that it works the simplistic way to explain this is you get your pay is based on the stock performance so if the stock goes up you make more money so you don't care if you cannibalize future earnings you don't care if you cannibalize or fire the employees with you know with to make you what you want to do is try to make that share price go up by any means and buying stock back is the most certain way to do it ok now there's one part of that equation let's look at it mark lustily borrow money from the fed for a new. zero now interest rates are creeping higher they're now at multi-year highs
ten your eyes across the curve as it's called they're getting two percent three percent on various fixed income instruments is this a secular move up in rates or another head fake it's a head fake and it we're not anywhere near normalisation normalization is about six percent and we're far far from that we'll never get there at low cut interest rates before we get even close to that because we're about to head into a recession if we're not in a recession now the other thing about you know that is the share buybacks the biggest problem with that is you know what happens is the stock prices keep going up up up and up but you know you're not going to have any kind of growth in terms of job creation or in terms of moving the company forward so basically it's going to atrophy and die and you'll have a lot of zombie companies that are being supported by these ultra low artificial interest rates corporate debt has never been higher there's never been more corporate debt issued now when people have to have. a resetting of like the loans
for all the real estate and property that we have out there these resets are coming due in the next three years a lot of the corporate debt is rolling over i don't know who's going to buy it and i don't think that there's an infinite demand for this paper and the high yield paper especially you seen a great gap between where high yield paper is trading and regular paper and i think you're going to see people start to shun high yield which could be the beginning of the next crisis which what we're seeing in our emerging markets it could be the lynchpin you see in venezuela hyperinflation you see argentina defaulting on those fine hundred year bonds we talked about and laughed and said anybody who buys there should be fired now they're going to the i.m.f. begging for money you know the whole davos thing was a total scam where the the person in charge of the let me jump in here said i if you talk a macro talk of global trump is now into his trade war is talking to china going to russia. so at the time walk us through how you see that playing out this trade war
those tariffs a lot of people were you know shrieking that this would be horrible so far it doesn't not look horrible looks like a smart thing to do in some quarters or what your thoughts look you have a lot of the globalists want one global government to rule everything and i'm not so sure that we're that far away from that right now i mean with what's going on with the european union i mean italy has four trillion dollars in debt that they can never repay and you've got a government that came in that said well what we're going to do is we're going to restructure that debt which that that's a signal that we're not going to pay that debt back if you look at target to where you look at the amount of withdrawals from the banking system in italy for the past three or four months it's alarmingly high so this indicates that first of all those banks in italy are insolvent they are stuffed to the gills with the worthless italian bonds that are backed by nothing but mario draggy or the european central bank's promises ok so. who's going to be left holding the bag this time cyprus is
the the model for sanction deposit confiscations that's why the italians are pulling all their money out of the banks because they know that these bonds are going to default eventually and what's going to happen cyprus being a bail in versus a bail. would be like in two thousand and eight where the government prints trillions of dollars and gives to the banks to bail them out of bail in is when depositors' get their money ripped out these organizations what happened in cyprus so you're saying it will it only takes it they say anything over one hundred thousand euros you have on deposit we're keeping so if you have any money that playing out in italy i see that playing out everywhere i think eventually when the banks fail next time in the united states as well i think that people are at risk because the f.d.i.c which is a federal insurance deposit corporation only has a minute fraction of what they're supposed to have i mean they could never never ever if there was a systemic banking failure on or the obligations they have to insure all the depositors funds the i.r.s.
recently got approval just within the last twenty four months to seize people's passports if they feel that they are in arrears on their taxes for as little as fifty thousand dollars and initially there was no action now in the last few months they've said they've seized or canceled almost three hundred fifty thousand american passports so is the i.r.s. now it would be similar to what you're saying they're simply seizing people's assets that the debts are there as you point out the debts and never been higher the interest on the debt is climbing all the accounting tricks been burnt out plan a ponzi and so now they're just outright taking stealing grabbing assaulting folks well there's a couple things here like i say in my book don't take my word for anything i have in here ok i walk you through the numbers and i use the government's own data so by my by my calculations and by others calculations our debt the united states is probably somewhere around. two hundred fifty trillion dollars. off balance sheet
well this it no not just national no knock off balance sheet items not including off balance sheet items where i'm talking about social security medicare medicaid and a host of other entitlement programs that the government is legally sound but are not included in their official in the twenty trillion or twenty one trillion that we have a lot of they don't include that that's like saying what are your liabilities and you tell me what your liabilities and your assets are and you exclude the five million dollar mortgage you have on a property that's worth close of all the live build it's called legally binding obligations hundreds something two hundred fifty trillion probably which is almost what three times or four times global g.d.p. so i mean this is a joy norma's amount so this is why interest rates if they go above four percent makes it technically impossible for the treasury to service the amount of debt that they have that's why i'm concerned about the rollover of corporate debt and high yield to coming due in the next two to three years ok so our plan and policy they
drill our plan they drill for money by going debt and they gel negatively into negative interest rates that's that's the drilling that goes on plan a ponzi right which is another form of wealth confiscation rights i've asked three forms of confiscation we've identified the last few minutes number one would be this i.r.s. money grab number two bell ends by banks taking the positive cash number three negative interest rate correct so that there's a whole array of institutionalized money grabbing techniques that are now being rolled out globally and people of course are being disenfranchised as as you know san francisco is down need deep in human feces right because of the economy is gone bifurcated to the point of dysfunctional utterly and so is there any end to the drilling down into the plan a ponzi money grab by the corrupt government and banks well you know look if you see what's going on the most glaringly obvious problem we have is the. diversion
that we've got to for d.s. divert deflect deceive and deny they've got this whole thing with trump going on in the media. it's russia russia russia everything is russia russia russia there's no evidence there's nothing and what they do is just put this on the airwaves they don't tell everybody about the dire financial circumstances across the globe right now and we're about to fall off the end of the precipice and of course like they've done with everything else they'll blame that all it's going to be the pump be dumpy trumpy you know they pump the markets up people all the smart money is dumping all the equities at these prices and they're going to blame trump so pump you don't be trumpy is the place where buzzword of the day sounds good t. shirt and blue ponzi humpty dumpty tromping there you go i mean let me ask you a quick like thirty thousand feet looking down at the numbers does this or does it not make sense trumps in recently that he is concerned about funding made particularly with germany involved in nato and while they simultaneously a are
selling getting gas from russia right the money is going to nato directly to russia but the purpose ostensibly for nato is to defend these european countries from russia that's the purpose of supposedly this is ak and a correct assessment i mean your money manager you're in big business finance well is that make sense tell us about it here's what i think about that look nato was a really good thing after post world war two when there were a lot of cold war tensions going on in the one nine hundred fifty s. one nine hundred sixty s. how much is the world changed since then and really you can push a button and the world do you really need to the military industrial complex is pulling all the strings in washington there is a deep state we've established that so this is what happens these guys want war war is big business look at boeing shares look at lockheed martin shares look at all those military industrial complex scares they've gone they've skyrocketed so these
guys want to keep themselves in like flint and so all right so in other words the nato is out. lived its purpose and i think it's got to be modernized and i remain and i owe him because resources yeah i don't think america should be picking up ninety one percent of the tab especially with germany like laughing at it so you know germany's going to pick up some of the tab the other countries need to pick up some of the tab or mean that's only right i mean do you want your taxes to go to pick up your number i mean my thought is this that with trump in south korea and pulling troops out of south korea there's fifty eight thousand troops and germany that's part of nato and the whole mideast fandango right and he mentioned during a recent press conference after the summit that putin tromp we're deep into the israeli middle east equation so the trump looks on americans balance sheet you mention are he's debt is fifty cents of every tax dollar going to the pentagon and
he says you know what i can cut that in half if i simply pull out of germany pull out of south korea and finally solve the middle east and banco i'm going to save one point five trillion dollars in a year right i mean and lose what i'm not going to lose anything the real problem max and nobody's focusing on this and people eventually pick up on it but china owns washington and china is the military threat china is the threat china is the threat to america russia's g.d.p. is under two trillion dollars or around two trillion dollars china is the biggest competitor from a military perspective in from a trade perspective the u.s. has that's what the focus on washington should be but china's not an idealogue i mean there it's all about cutting deals are not like you know. chairman mao anymore it's about making bucks i don't think china can be trusted at all and i think that there is a huge problem with china's economic data and the way that they've pumped up their economy with printed money we got to cut off their mitts thanks so much for being
on the kaiser report thanks for having me and that's about it for this edition of the cause report was made last kaiser stacy am i to thank misfires stein of planet policy. that's where we all live feel like i'm just on twitter it's kaiser report until next time by you all. right we're all set to start in five yes to the studio has a signal. he's not going to talk about. just maybe right after the war's explorers were moved would have their new. food record. last week.
ok in this room full welcome to sophie and tell aunt sophie shevardnadze and today we've got lots to talk about in our program and our gas. good luck little. u.s. president's national security adviser confirms a second trump putin summit has been postponed until after the russia which is over . claims russia will interfere in the upcoming midterm elections to help his rivals the democrats. the tenth annual brics summit of emerging economies is underway in south africa with america's trade wars high on the agenda and also to come.
over six hundred migrants forced their way into spain after storming through a border fence between the country's enclave. and the rock dozens have been left into. good evening thanks for joining us this is our international. u.s. national security advisor john bolton has confirmed a second meeting between donald trump and putin will only take place after the end of what he called the russia witchhunt comes after the secretary of state was grilled in the senate over the recent meeting in helsinki between the two leaders has the president told you what he and president putin discussed there.