tv Keiser Report RT November 6, 2018 7:30am-8:00am EST
cable news here in america from the hotel room and it's still crazy like three four that i feel like maybe the altitude is a little bit too high i'm not sure if i'm hallucinating what i'm seeing on the news here but it's pretty bonkers and one thing they never mention ever is not only do they not mention yemen but they don't mention china and they don't talk about what's happening with china because i think they don't understand it they're afraid of it or they want to ignore it and they don't know how to deal with it so i'm going to look at this headline from marshall our back who is a genuine progressive there aren't very many genuine progressive's in america there's a left wing there they call themselves left wing because they're socially liberal but there are very few that are actually. liberal in terms of imperial vision and what goes on so he's looking at this trade war going on with china and says this so far the big trade war loser is china not the us it's early days but so far the
constellation of economic data that has come out of both countries suggests that it is china not the us which is bearing the brunt of this particular skirmish and so long as the us economy continues to grow the corollary is that we should stop regarding these protectionist measures as temporary aberrations in america's internationalist policies especially on free trade rather this is the new normal an expression of a rabid nineteenth century style nationalism reversing decades of globalization and shifting the worldwide economy into a series of competing regional blocks and alliances in the process maybe even a new cold war with china this time not russia well marshall is agreeing with what i've been saying here this is neo mercantilist. all countries competing with all countries no more globalization no more central bank domination no more national monetary. world bank united nations colluding in back rooms and davros to continue
to corrupt the global economy now so trump is right obama i think you've got to say i was wrong member bamma said you can't just redo trade we're stuck in this global was world and there's nothing we can do about it so we just go to you know wake up to the fact that we're slaves to the globalists you know obama's like i don't think so marshall but quite tellingly is agreeing with me thank you it was trump who said no i don't think so that we're you know victims of globalization and we just can't do anything about it and in fact marshal all back does talk about that his own way where he points out that it was in the one nine hundred eighty five plaza accords where the u.s. really decided not to ever even concern themselves with the u.s. manufacturing and went totally only all foreign policy and foreign trade deals were about financial services and copyrights so this is the only in the only two industries that they've ever protected since one thousand nine hundred five the plaza accords is when all those the powerful nations of the world came together and
they basically helped. devalue the u.s. dollar so it's all been about financial services since then right and greenspan famously said that the world economy is getting lighter and what he meant was that because it's going toward intellectual property in this type of economy monetarist policies that those things are made up of atoms and not actual stuff like cars and boats and things that have weight the plaza accords was one thousand nine hundred five and that was the u.s. devaluing against the dollar each mark which was in existence back then and the yen and the meeting was between france west germany japan and the united states they came together under reagan and then he points out that when robert rubin came in next after reagan was out and clinton came in then it really just went all financial services and so for the past forty years all we've had as a policy towards manufacturing sector is just a slow rot and then now that those people of the forty years later are in. hey
we you said it was going to get better and it sucks in our livestock and the only response so far from the democrats has been well you guys are deplorable zhan loser that's all they have for them right the big difference in the media is back in the eighty's you had mainstream media and legitimate journalist on networks and then the fringe was on something called public access cable a bit now and twenty eighteen you've got like rachel maddow who is like the ugly george public access cable circa one thousand nine hundred three who has a video pack and run ring around aimlessly screaming into the wind nonsense and that's considered news now that's the big difference between then and now i think news wise marshall are about points out that also since eighty five and the basically the commitment of all u.s. policy towards financial services has been that. free trade is not a means to an end but that and itself so here trump has come in with the opposite and he said when you start from the premise that free trade in and of itself is not
. good but part of an america first strategy to make american manufacturing great again or even allow free trade considerations to be superseded by national security considerations it almost invariably follows that trade negotiations will be less benign and more aggressively unilateral even with so-called allies as both justin trudeau that punk little kid running canada called them and angela merkel are now learning more over the lowest possible cost considerations the usual and game and trade negotiation and might well not represent the primary objective and the overarching framework of a new agreement with trump trade policy under trump as designed to revive u.s. manufacturing so as in the words of. two quote steer us firms to build resilient supply chains based in the americas not in china's industrial heartland all this is
absolutely correct and it means higher wages in the us it also means the global central banks are no longer going to be cooperating they as they have been since the eighty's which means that the bond market loses because interest rates will start ticking up as we are now seeing interest rates are now breaking out of a thirty seven year bull run in terms of what prices have been and that means we're going to have enormous economic dislocations all over the world it'll be like these people are making the comparison in one nine hundred sixty eight in terms of chaos and we're approaching that level of chaos although ninety six today was magnitudes more chaotic than twenty eighteen but i think that given trump's tearing up of the globalist monetarist attempt to transform the economy into something that's algorithm really generated by a few guys on wall street the actual jobs people banging on his. bending metal benders and in factories is going to cause an enormous worldwide upheaval so again marshall auerbach looks at what has actually happened and that china pears to be
losing this trade war despite what much of the mainstream media has said you know they basically looked at i mean obviously trump does speak and behave kind of a radically i guess that is part of his trade negotiation style his art of the deal but they fell for that they they themselves the mainstream media who are supposed to be the ones that explain world policy and economic policy and political policy and geopolitics to the population they missed what happened and marshall our points out why trump won this chump's position visa v beijing is not rocket science despite how the fact that the mainstream media missed it ok the administration to simply take in the view that a large economy with a trade deficit like the u.s. has greater bargaining power than smaller economies with trade surpluses in spite of its growth china is still smaller in market exchange rate terms by cutting the
overall trade deficit the big deficit country stimulates domestic growth and employment via import substitution meanwhile the surplus nation loses a big chunk of its foreign market leaving it with an overbuilt export sector moreover it is politically easier to build new factories in the former deficit country than to have mass layoffs and idle factories in the former surplus country that is what the president means when he says that trade wars are good and easy to win that's why we've been saying for a while now it's remarkable those of marshall. as you say he's a progressive yes and he's talking sense is spent on our show and i have talked to him despite being is. a maple leafs fan a perennial loser he talks good sense of it comes to economics and then what's remarkable also is that the democrats would not understand what this means they're
all financially illiterate obama hillary bill clinton they would read that maybe like i don't get it were my free words my free money like just listen to marshall and you can come up with a plan for twenty twenty but you never will because you go after ratings you don't go after data you're going after the big spotlight you're not going after a win because you're morons and again so the mainstream media and actually also the blogosphere and i think michele bloch would agree with the opposite of this like he got it wrong in terms of this what marshall says is who's going to win from a trade war because the mainstream media will say well prices are going to get higher and the consumer loses but here's what marshall says about this trade war the dirty secret of globalization driven cheap labor offshoring is that it has boosted profits by much more than it has lowered consumer prices the claim is that consumers will be hurt but in the first instance it is likely that the huge profit
margins of the offshoring firms get whittled down first they'll still make profits but not the same kind of windfalls from cheap labor that's also one of the implicit quid pro quos embedded in the corporate tax reform margins compress so stocks go down and bonds are already going down so you're going to main street win over wall street so the pendulum swings toward main street so as long as wages are increasing faster than inflation then they'll have a sense of doing better than they were before so michelle you know we had a debate with michelle like and somebody else was there all down in general damage or so carl did your appears to be correct in many wise allow parkwood agreeing with them that you know that at least for the short term because he does say in the long . we might not win because of this america first and losing all our allies like germany and stuff like that but i also want to point out that in terms of how the chinese leadership is responding to this that's quite interesting the text of this
next paragraph that i'm going to read here right now the chinese leadership is trying to figure out whether they try to appease trump or wait him out and use all of their wall street allies of convenience to make their case and help elect a democrat in two thousand and twenty much to beijing's consternation the usual carrot stick approach of making concessions and threats on financial services or farm goods haven't worked wilbur ross robert light and peter navarro are not bob rubin larry summers hank paulson or timothy geithner well bill ross spelled out like two or three times already you know but they're also you know they they believe in american manufacturing and robert rubin larry summers tim geithner they they thought the only deplorable do manufacturing and it should be financial services so these guys like hisor wilbur ross and peter navarro are very very much
like we need an industrial heartland we need to is also a matter of national security because even say look at venezuela venezuela is a basket case now because they have to import all their food and if you have to import all your food you're at the whims of the global markets and and somebody sending the food and you have to pay for the food and not in your own currency so here the same situation is america is vulnerable anybody is vulnerable if you're you have no manufacturing capacity at all don't take chances within is like with like your shoes or four leaf clovers watch kaiser report after the break we're coming back with a lot more so don't go away. i've been saying the numbers mean something they matter the u.s.
has over one trillion dollars in debt more than ten white collar crimes happen he did. eighty five percent of the global wealth he longs to be all for rich eight point six percent market saw a thirty percent rise last year some with four hundred to five hundred trades per second per second and bitcoin rose to twenty thousand dollars. china is building a two point one billion dollar a i industrial park but don't let the numbers overwhelm. the only number you need to remember is one one business show you can afford to miss the one and only boom but. there's now a build around pray here in rwanda to know why is this terrorist. bad memories of. twenty four years ago this country song
a real look at end of the world. after the genocide there a mom women in rwanda that man. it fell to women to fix what the men had broken. in a world a big part of the new law and conspiracy it's time to wake up to dig deeper to hit the stories that mainstream media refuses to tell more than ever we need to be smarter we need to stop slamming the door on the back and shouting past each other it's time for critical thinking it's time to fight for the middle for the truth the time is now for watching closely watching the hawks.
welcome back to the kaiser report imax keyser time now to turn to longtime guest super author of plan a ponzi mitch fire steinmetz welcome back how are you max great to be here so we're on our guns a trip so taken some time out to do a kaiser interview with you here in texas you know in texas home of the energy industry in america home of the fracking industry but before we get into that i want to talk to you about the credit cycle it seems as though this thirty seven year bull market in bonds is coming to a close the united been affiliated with wall street for about that length of time this would be the first time in our careers that you've got maybe a cyclical change in interest rates and a move up and bonds of course then moving down tell us what this means misfire stein well i think what you have you've got the federal reserve saying that they're
going to taper a ponzi scheme and raise interest rates but we know that that's impossible so i think what will happen is you're going to see and what we're seeing now around the world we're seeing a recession in europe we're seeing a recession in china and in asia broader really and the emerging markets are submerging they can't afford to pay or service the debt that they have the u.s. dollar denominated so eventually the worm is going to turn and you're going to have a recession or a probably the greatest depression and quite events in america which is going to have the federal reserve cut rates max so it will we might see a big bond rally when that happens we'll have a q four number saying i can't count that high but that would be the response but if the cycle has turned and it's a cyclical cycle no amount of financial engineering will stop a move toward higher rates it's like shoveling sand against the tide right well yeah exactly but i think what we're seeing and what we've all got to realize is the
central bankers have been. eyeing the they don't know what they're doing and what they've been trying to do is talk and jawbone markets back to nor normal but you can't pay your way out of debt with borrowed or printed money this has never worked it will never work so nothing's different this time and it will end in failure but this time it's going to be a catastrophic failure that even the interest on the u.s. debt something like half a trillion dollars and that's getting close to anyone all tax income so if the interest on that that can't even be met by revenue from taxes that gets into hyper inflationary currency crisis yes well will happen is you can have a period of time where we can't afford to pay service our debt but then they're going to print more money and what'll happen you know china is not going to buy as many bonds other countries are going to stop buying bonds so they've got to issue an inordinate amount q four this year they're issuing more debt than ever the treasury to fund the ponzi machine there's
a lot of currency crisis yeah that's exactly right why it will have a currency crisis but we're having a debt crisis so i think that what we have are grotesque asset bubbles in the bond market the stock market and the property markets but one fuels the other you have a currency crisis which will lead to a. trade war which leads to a hot war things are let's talk about something else political all markets and how they answer mix and where we are in these cycles in the bond market is all financed using bonds for the fracking industry they're heavily in debt based financial industry and yet the energy industry is beholden to the big energy players like saudi arabia and so you've got a combination of politics and markets here so first on the fracking business we've been saying for a while now it's not economical and what the price is at the current level is that still the case what's the prognosis for fracking here we are in denton texas which is the first state and first city to do fracking and politically what do you think
could happen with the saudis and the political machinations with the price of oil mitch well i think look what's going on for fracking has never been profitable oil popped up a bit now i think you had the death of one journalist that was rather unfortunate and saudi arabia was behind it and they came up with six different stories in four days or something to try to explain that away i think the biggest problem is what people aren't addressing the saudi arabia is no friend of america saudi arabia was involved in nine eleven saudi arabia will push oil prices lower but at the end of the day no matter what the rhetoric is coming out of washington or coming out of britain that they're going to do something about it they're going to do nothing because the united states is sowing one hundred ten billion dollars worth of weapons of war that basically are blowing up school buses in yemen and blowing up weddings in yemen and britain is the second highest participant in that so i think
you're going to see oil prices as a result of the recession the global recession go down to the thirty's or even twenty's which will crush fracking and pretty much crush mostly all of the oil production industry but i think you're going to see some kind of big changes in saudi but not driven by the u.s. that's an interesting switch. on the theme from the one nine hundred seventy s. where we had the saudis hit the oil as weapon but by jacking prices up here because all this industry's debt based they can hurt the u.s. by forcing prices down as well yeah i think that that's that's a that's a big part of it max i agree but i think that what they're trying to do by pushing prices lower is try to placate the politicians and make things better for americans they can have cheaper gas for their cars so will forget about the journalist that was cut up into little pieces and these to live were able to find his body and will continue sowing them weapons they can cause disruptions in the middle east by some goodwill they're so low are trying to rise some good well off i think that they own
all the politicians in washington which is a fundamental problem and you know when you get the mainstream media that's a propaganda bullhorn because it's financed by the saudis that's part of the problem well how do you pivot i mean of all the mainstream media like m s n b c is put all their political capital into hating russia and it's ours out there the enemy is actually saudi arabia they how do they pivot to that if they don't bother tending to that we never hear that story wise that well they just put rachel maddow on and she goes right not russia russia russia but saudi is doing actual harm you know that's exactly the problem the real culprits in this smacks of people who have culpability and have i mean the nine eleven investigation disappeared. and now when you had this thing it's just going to slowly fee go with it and they're going to come back if the if i don't know what's going to happen in the midterm elections but if the democrats win they're going to certainly and i don't think they will they definitely won't win the senate but i think that the what they're going to do
is try to triple down on the russia russia russia you know it's two years later we haven't seen one shred of evidence one fact based bit of information released i mean it's been entirely made up all right let's switch gears a little bit and talk about markets and talk about a group of stocks you've been following for a while the fangs socalled. facebook app all netscape google all. maybe there are that in there so these stocks of that remarkable runs and now they've pulled back pretty dramatically on this market pullback so. what is your thought on this market at this juncture mitch well you know i think it's one of the grotesque asset bubbles and the last time we spoke which was i think in the end of september we talked about slam is on i'm sorry i mean amazon and it was trading at two thousand dollars a share and i said anybody who buys amazon shares at a trillion dollar valuation should be quite ready to lose a substantial amount of money and in one month amazon shares dropped twenty eight
percent from peak to trough so this is what you're going to see those are going to be illustrated big losses bigger losses to come it's just the beginning yeah i remember during the dot com period we had cisco was highest market cap at the time with five hundred billion or so or six hundred billion and there was talk it's going to go to a chile and then you have the dot com collapse and cisco declined sixty or seventy percent or more and stayed down in the basement for a while so it seems like a repeat of that kind of collapse of a highly. hyped sector in the stock market and there are too many people in the marketplace today like i heard some kids talking in new york saying oh my portfolio is down because of facebook and amazon and apple are down a bit but i'm not worried about it because they're going to triple in the next ten years and i was just thinking to myself oh my god what are these guys thinking i'm going there in the dot com era it was a oh well everyone yahoo yet they want to own a.o.l.
they're like oh you know i love this i want to buy stock in iowa and then a collapse you know here when i'm in a hipster cafe suddenly i see everyone song go bang bang bang meaning minister robin hood app and alerts people in their stocks are down five percent or more and i see as many as i want to get their phone like oh no. you know they get all them thinking. this could be the dot com crash this could be the stock market crash of eighty seven united boss experience that right could be the bond market crash of ninety four could be the subprime crash of two thousand and eight why is the memory of participants in the markets so short how do people never ever learn that there is a cycle to these things and the idea is to buy low sell high not buy high as sell low you know we're very late in this cycle and i think what you're seeing are a lot of the senior participants have never seen a bear market in the least and as you rightly pointed out one thousand nine hundred one was a peak in interest rates where you had the metric for all of risk which was the ten year government treasury trading at around fifteen eighty three that went almost to
zero over the course of one thousand nine hundred one to recently and i think that big precipitous decline is what's going to happen with these grotesque asset bubbles that have been inflated as a result of reckless central bank policy and i think that these carnival barking central bankers will be exposed for the economic charlatans that they really are are let's play pin the tail on the disaster so if there is another financial collapse coming it's got to come some somewhere so give us some choices you tell me if that's how hot or warm we're going to get as that is the ground zero of the next collapse of student debt yes warm warm very warm one point one point five trillion corporate debt very very very warm four trillion sovereigns say central bank balance sheet over leverage ridiculous how about that that's in the stratosphere now it's can never be repaid china debt ponzi ponzi big red ponzi so all four of
those are pretty happy i think in that central bank balance sheet is central banks need to be bailed out the same way wall street need to be bailed out two thousand and eight but how do you bailout that global central banks if they're the ones who are doing all the bailing out to begin with who bails out the bailer outer if you know what i mean the the other ancillary issues that we've got to look at that we've forgotten are. emerging submerging markets who have dollar denominated debt so as their currencies implode like you see turkey's currency has imploded brazil's as imploded argentina is ready to default for i don't even know what time it's going to default who's going to bail out the central banks nobody but it just tells you that currency paper currency is going to become worthless and u.s. dollar germany's going to be finished that's a very important point so the u.s. dollar gemini world reserve currency status ernest your book plan of policy is kind of like the how to guide for how this all blows up it's available in english i think it's also available in german german russian russian chinese chinese so you
have no excuse if you speak those languages you should if you haven't read plan a ponzi and you get burnt by the ponzi ponzi stock don't don't come crying to us i will thank so much for being on the kaiser report thanks for having me and that's going to do it for this edition of the kaiser report with me next kaiser and the author of planet ponzi firesign it generates us on twitter it's kaiser report and so next time. in twenty forty you know bloody revolution two to crush the demonstrations going from being relatively peaceful political protests to be creasing the violent revolution is always spontaneous or is it just the lawyer. book video.
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