tv Keiser Report RT November 1, 2018 6:30am-7:00am EDT
fine to look at. so we're going to turn to some financial news because that's what we cover chis report markets finance scandals and it's perhaps just says you know it's a little bit light relief i think yes why i think that ugly october in stocks was just a preamble the crybabies on wall street are already clamoring for the powell put allegedly you know markets are down there been falling in october while we've been traveling across the country i didn't even really notices but. you know market participants are once again very terrified very scared calling for the fed to put put put a put another they're going to help us with more free money we can't stand taking actual risk we're bankers we just like profit we like risk so does the everybody you know at the same time i saw barack obama is campaigning on the stump and he's like this great economic recovery in stock markets all due to my efforts which of
course is false just to correct the record barack obama printed about sixteen to seventeen trillion dollars for his banking buddies with the help of timothy geithner and he simply glossed over the problems and made it possible for the wealth and income gap to skyrocket so now you have the greatest concentration of billionaire wealth ever that's thanks to barack obama bailing out the banks instead of the actual debtors so we had to suffer in this enormous dislocation in the economy getting back to the top of the show you talk about all the violence emerging coast to coast and i have a lot to do with the fact that many people america millions of people feel disenfranchised thanks to barack obama's policy of bailing out i mean it's not like . well i think it's just like you know science ability it just happens upon cheney asleep and happened or it happened because a george w. bush happened because of ronald reagan and bill clinton. makes a decision not to balance the debtor's and make historic unprecedented move to bail out the creditors but it was the slippery slope to what we have today ok but in the
u.k. they also did that and they don't have mass shootings there so there is like disconnect there's something going on here and that's another story but i want to talk about what's going on in terms of the markets falling just to put it into context because the bankers themselves are acting very extreme and they're all scared and they're asking the fed to help them out the dow was actually well behaved in october f.l. about three percent for the entire week and is about flat year to date nothing special the dow is only eight point four. went off its peak and compared to a year ago it is still up five point four percent is not a crime for stocks the flat year to date stocks might actually be down for the year and they might be down for years but people have forgotten and younger people have never experienced that in their life after a decade of blate in market manipulations by central banks they have created the centrally planned everything bubble that is now gradually deflating it oust rick
lot of the show from gold money he spoke about the credit cycle turning interest rates were going down for more than thirty five years he postulates that interest rates are starting to go up that means that we're not just heading into a situation where the fed can bail out stocks because the situ in a situation of five or ten or years or more of rising interest rates like the seventy's where you had year over year declines of stocks for a whole decade practically number one number two to say that the stock market is not overvalued to begin with is is erroneous because if you strip out all the stock buybacks with all the free money given by the fed and if you were to strip out all of the kind of financial engineering that again isn't enabled by the fed and if you strip out the four or five technology stocks that make up the bulk ninety percent of all these games for the last ten years if you take away the top ten performing technology stocks and the stock buybacks the stock market would not have made any move at all for ten years at all for ten years that's all been
artificial it's all been lubricated by free money and by the old compositionally ny state's economy by amazon apple facebook that have destroyed the better of playing field and open the groundwork for what we're seeing now which is total and utter collapse well it's not our collapse yet and that's what will for sure assumes that it's going to fall by the way michelle also said on his blog that you know markets can have another five to ten years going down now and this is this could just be the beginning. but in particular wolf looks at one sector that. really went. boom boom boom be under trump the trump you know explosion and stock markets was the property and the building sector so looks at that in particular and looks at how bad that has done in october especially as the rhetoric meets reality that the free money isn't actually coming because remember they all bet on that one point
five trillion dollar spending plan infrastructure spending plan he talked about on the campaign trail but that never actually happened so building in construction stocks surged by fifty percent after the election and hopes for a mega construction boom based on the story of a one point five trillion dollar infrastructure plan much of that one point five trillion would be distributed to these companies that was the height when markets realized that this was a head fake these stocks started to crash so he takes a look at the power shares dynamic building construction e.t.f. which is plunged thirty percent since january twenty third and is back to where it had been right after the election this shows the trump bump and operation soaring on wall street hype and crashing on reality there is the hype and there is the reality right construction stocks and housing stocks are hyper inflated but is it going to be like the subprime crisis that ignited the two thousand and eight crisis no probably is going to come from something like the student crisis student loan
crisis one point five trillion in student loans non-recourse loans are going to start defaulting on mass corporate debt defaulting on massive junk bonds defaulting on mass tunnel set off the next global financial crisis the extension of the two thousand and eight global financial crisis the global financial crisis was the beginning of a global economy that was kept to alive through transfusions of cash administered to an economic corpse the global economy has been dead since two thousand and eight and through the transfusion of a lot of money it's been animated and kept alive and looked like something was going on there but now there's transfusions of cashier. are ending because interest rates are going to start ticking up so now the rotten stinking corpse of the global economy is going to start smelling really bad people are going to start bailing out of stocks technology stocks housing stock. semiconductor stock yeah right this is like sell sell sell sell sell sell sell and then of course you could have market down twenty thirty forty fifty sixty percent and then it'll still be in a long term bull market that stock market can drop sixty percent in the long term
multi hundred year trend would still be bullish you could still have a sixty percent drop and still have a bull trend going back one hundred years keep that in mind many in the audience watching this many participants in the stock market you know retail apps the ordinary investor. listening to people like you and alistair macleod or peter schiff or michelle a lot the older guys who remember some of what a bond market with rising interest rates looks like when i don't if there was a bond move down had a bond collapse in ninety four and it was a bomb atsic massacre in ninety four you know is a financial crisis in the late one nine hundred ninety s. you had of course dot com as of two thousand you had the cycling crash which i remember well because i was working on wall street one hundred eighty seven and we're overdue for a major crash the only question is where it's going to come from is probably going to over the junk bond market the corporate bond market that will crash horribly and that was set in motion the contagion will see a major bank probably going to bank declare bankruptcy the fact is most people
don't believe this is ever going to happen because. you guys have warned that this is what it will look like but nobody has a memory of that nobody has a memory of what it could possibly look like because they do believe in the greenspan put the bernanke he put the janet yellen put and now the power they do believe that the fed can come to the rescue because that has happened over and over because you mentioned the things that have happened like the one thousand nine hundred four bond market sell off and then what happened the fed came to the rescue didn't they because things resumed interest rates resumed down you could always roll over your debt you could always accumulate more debt and remember that mantra is always that it doesn't matter how much debt we all have because it's our servicing how much it costs a service that debt and that servicing the debt keeps on going down other than for the u.s. government remember we showed that a few weeks ago where because they accumulate so much debt even despite low interest rates they're servicing costs are going up every airline servicing cars for us just a half a trillion and rising and if their interest rates rise by one or two percent then
america technically is insolvent and look a man the predictions of a bond market collapse you know for last three or four years and so when peter for myself or others say bonds or by the collapse they don't collapse you know people are saying they're you know desensitized to this information and they don't believe it some are going to happen but the thing about the fed is that can only control short rates they can't control long rates and here's the difference between this crisis of the previous crisis is that it's going to be a u.s. dollar crisis i want to mean by that is people around the world like china russia and others are going to lose confidence in the u.s. dollar the u.s. dollar once it loses confidence by these other countries the u.s. dollar will crash and that will be something that the humpty dumpty won't be able to be put back together again because china and russia have been buying gold hundreds and hundreds and hundreds of tons of gold and raiding and they're preparing for a u.s. dollar collapse and loss of confidence in the u.s. dollar and the fed can't do anything about that and they can't do anything about ten year twenty or thirty year rates they're completely impotent when it comes to
managing the long rates and if the cycle has turned and credit cycle is go. going to go negative there's absolutely nothing you can do it's like spitting into the ocean you can't stop the tonic plates of financial market mr market will always prevail mr market always prevails it could just be power whatever the fed chairman's name is robert powell her own pastoral powell you know he is he has nothing he can't stop it we have pointed out here in order at least many of our gas have is that one thing that will be different when this next crash comes and it does come because we only do boom and bust now. they get more and more compressed but the thing is that the central banks have always coordinated together and to respond to a financial crisis so i think perhaps you know with china emerging as such a giant economic force and an economic power whether or not that they considering
how much gold they have and we don't know nobody knows for sure how much gold they have they might just be happy for it all to disappear a chinese population has been purged by gold yet it is waiting for the dollar collapse and under trump administration there is no cooperation most central banks now he's dick lobel ization yes and he's written a zero mercantile ization and there's an enemy no cooperation to me all for against all the right and the us dollar sitting there with like shooting blanks that the u.s. dollar is like bang bang bang nothing coming up with confetti and china and russia they're like ha ha ha ha ha we've got all the gold ha ha ha ha ha well much more coming your way after the break don't go away. or. join me every thursday on the alex salmond show and i'll be speaking to guest of the world of politics school business i'm showbusiness oh so you have.
relationship banks butts recommend trouble couples to keep talking to each other this advice would also apply to president putin and president trump on the eve of the second meeting is it enough to pull the u.s. russia relationship out of crisis. i've been saying the numbers mean something they matter us of that with one trillion dollars in debt more than ten white collar crimes happen each dish. eighty five percent of global wealth if you want to be ultra rich eight point six percent market saw thirty percent from august last year home with four hundred to five hundred three per second per second and bitcoin rose to twenty thousand dollars.
china is building two point one billion dollars ai industrial park but don't let the numbers overwhelm. the only numbers you need to remember is one one business showed you know ford to miss the one and only. this one did i took it to us i live the good yourself in. front. i wish we had many things in this world this is you know. why some peoples also take our things all the power just for themselves only to see a bad. mood.
welcome back to the kaiser report max kaiser time not to go to bill barr id's the c.e.o. of. bill thanks for coming up my pleasure thanks for having me yeah all right here in los angeles and behind us is los angeles you're here in los angeles and average as a wallet right if you're trying to wallets just describe usually the product to the people yeah so average is really easy to use crypto while it's meant for the retail investor we have users in like a hundred countries around the u.s.
but spreading quickly throughout the world allows you to hold up to thirty crypto currencies as investment contracts and the apps like invest in ripple. white corn recording cash. g. all of them basically all the big ones anyway through the af you can exchange between them in real time you can use your bank account to get money you know to be app in dozens of countries u.s. europe singapore canada etc. and the number of countries we support for banking night is growing all the time and now we're working on adding more investment classes to the app so the first thing that we're focusing on is index products yeah so this is a new product and this is this thing because this product is kind of been developed in parallel as folks have been trying to launch an e.t.f. on wall street's right and i know you are scheduled to do a talk recently called w.t.f. the s.c.c.a. or something to that effect in other words it's all full steam ahead it's kind of like an e.t.f. tell us about it yeah so the average index token is exactly that it's one of these
investment contracts in iraq that looks and smells like e.t.f. but is actually a big coin collateralized contract which is really cool but that mean that english is getting invested exposure to eighty percent of the cryptocurrency market in one token using big coin to do that contract for me and that includes all of the top ten kryptos in partnership with a company called bill. wise bit wise is creating effectively with looks like an e.t.f. for institutional investors large accredited investors abbott took their investor methodology and applied it to our retail contract so it rebalances every month you get all the benefits of what they're doing but with as low as five dollars investment in the after app and you can even take some of your ripple for example and convert it to the index corner you can take some of your index corney convert it back to big court and say it's not quite as the unit of account that's right for ambra and everything amber does so you're already well down the path of hyper bit quantization we have no plan b. we are all in on the current average right this idea
a way into the future now you know everyone is a big client space is quite fascinated by how the old line mainstream economists are freaking out and i saw you recently on pound nuria roubini and you know he really starts becoming outraged and he's like a rageaholic or something seems unhandy just well you know and i you're on stage with them and you're just making eminent sounds just going over the basics there what is going on with people like nouriel roubini and paul krugman what why are they having these breakdowns well i think first of all you've got to put it in context right i mean he's it old school economists is trying to have an up to date modern brit so by attaching him to the crypto space which he's not an expert in and being being the naysayer it allows him to have a modern brand which he propagates on social media unfortunately now that having been said some of the points he makes about where the quote is from a scale ability perspective i think you can actually have if you wanted to an intelligent conversation about those things be chooses not to do that he just uses nonsense in earth because there are areas that are you can be critical ah but he
chooses not to focus on any of those and he instead he goes with his broad strokes on areas that are completely off base right nor does he understand or make the case that all technology improves exponentially over time right because it at its core is simply software and of course the software is going to be radically better ten years from now. just like it's better now taking from ten years ago right here nobody in his world seems to appreciate that just like truman didn't appreciate that the unit itself was going to scale up better twenty years later then he did when he was comparing to a fax machine yeah exactly rubini completely missed the significance of the answer not just like paul krugman completely missed the significance of the era now also the east columnist tend to be fall in the category keynesians where they love to spend other people's money they're not really advocates of hard money right and they are accountability and reason with with bitcoin it is the hardest money
ever occur according to safety now most of his book his book the standard of it's a task but yet he calls it the hardest money ever so yeah speak about them well because i think that's something that's very important these days of hyper inflated deficits and fragility to the global economy right i use this concept in my talks about why it's time for a new commodity standard globally right it is specially if you look at what q.e. one two and three have done to the hyperinflation of the u.s. dollar and you compare that to the hyperinflation of currencies that have been hyper inflated out of existence right like the venezuelan both are i mean i have to say that those charts look eerily similar right now my saying that i guarantee that the u.s. dollar is going to go away imminently but it's not looking good i mean you can only hyper of played your currency so far before people realize hey you could create ten x. where the which used to have something in theory it should be worth ten x. less than what it used to be and that's what we're blindly doing with the u.s.
dollar it makes no sense at some point right there paul krugman argues that well the sea agrees the dollar is not backed by anything except the pentagon right and but that trick doesn't work all the time really don't want to bomb could be a russia for example or china where they might reject the idea of being by. just support you know i don't think our government sees the dollar as hard money i think they see it as as the center point for a managed economy right now it's even worse because to me what are the ethics of passing on debt to great grandkids who aren't even born yet so if you want to call it the center of a marriage economy what it's like hartley nobody in their right mind can call the u.s. dollar in government got money hard money right so if that's the case who gets to side with the ethics are a passing aren't trillions or whether in the next hundreds of trillions of debt on to people who aren't born yet should be right they don't save and give that any thought not that they're just the data stacking up so in crypto you have two things
going on in this i think listen a lot of people got technology and economics right and there's a revolution in both simultaneously right that's where we get lost because you have critics on both sides who are misinformed and they get lost in the middle so you came to the space really did you come to the space oh god i've been working in this kind of world for thirty years or the cryptographer at the cia i was a quantico woman and i worked in a lot of fixed income stuff which helped me at abbey road to design the kind of the synthetic currency using because when i worked on certificate authority projects at netscape in the mid ninety's when we created s.s.l. rights only jump in there for science you know people say oh you know the internet was born when the netscape moment that skate went public and suddenly the browser was born and all that could that was part of that again became that i'm going to bolt has big point had that netscape moment is agra that that netscape moment is the extraordinary easy apple you know while it you can get in the crypto wallet are
kind of like to the crypto what browsers are the internet is your gateway into is this is this going to be that the gateway to take us into that netscape moment the admiral while i hope so let me give you two perspectives on that one is ease of use of course but the second is what is because in its core relative to how people are going to use hard money in the future i see big coin as t.c.p.-ip for money or. a lot of the types of investments in banking applications that people will do with average three four years from now they won't even know they're using because right so they're going to make payments invest in stocks commodities even whole you know not hard money like dollars all using because so the netscape moment will come when there is easy to use apps that hide the complexity of private public keys to the consumer in the background and enable really simple retail basing applications brocker said something interesting that big quiet it's the protocol versus the internet works we're really bunch of apps writing on the protocol what they call in
the protocol is leading the revolution chase it became first right i mean in one thousand menu one you had to install it the c.p.p. the stack on a windows computer in order to use the internet so you had to know something about it today nobody knows that they're using it and i think that's what's going to happen a big point over time right so becomes imbedded and you're really unaware of it and it's running the underlying economy institutional investors will still drive liquidity right which is what we need for absolute average we need to be liquid in one hundred fifty countries for amber to work correctly but the consumer doesn't have to understand that they just know that it works in our app store an investment contract in a stock or in dollars or whatever asset they're holding now here at the headquarters of the concert party now we're doing a special project we're traveling across the country a project called guns and we are spreading the word of crypto and we're spreading kind of the word of hard money and we're taking a look at the america what makes it tick the you know the the freaks the charlottes and the geniuses the flim flam man you know is donald trump an aberration or is he
actually a reflection of who america for it is right. now we need we need we're going to be looking for folks to come onboard and get give us a little bit of a sponsorship we'd love to have average come on board it would you consider that absolutely look i mean i think that part of my job is. c.e.o. right is to evangelize the fact that we need a new commodity based standard to manage the next generation of stored value investing hard earned money or wealth in some way the average public doesn't understand that money is money is a government managed economy it is not a hard money in any sense of the word if we can educate the next generation consumer that this opportunity exists right that is something that we want to be a part of i'm dedicating a big chunk of my life around to evangelizing wisconsin yeah we're on the road i'm gonna dent evangelizing white soon there you go here that's
a problem with that is to push this hard money message on the streets anywhere i can go amen brother get it out there to convert people now have to be on the journey but you may have to double up because you're a small close area like pumping gas and stuff like never whatever it takes you know what the catering i've got to start as i speak to floors so it's all good excellent well bill bar i saw the app is after app you can do the apple store own app store logical place to or right at the top the charts and banking it's doing really well so it's easy to find yeah yeah that's true download right to download and easy to sign up yeah you know actually you can start using the app without even providing any your personal details you can deposit because if you have it doesn't even ask you who you are and so you went to your bank details call and then saw the product the new product is the i ten or the if it ten bit ten so you get it because it's the top crypto exposure to eighty percent of the entire
market with a one with especially one investment one best is like an index and just a bit ten so while that sounds freaking awesome we're going to try to get as many people in the address possible my goal is you get you one hundred thousand new users thank you what's doing about that i think is fantastic all right well that we got to run a nice man counterpart our pleasure all right that's super well and that's it for this edition of the kaiser part of maine that. they see her and i think our guest bill farai is the c.e.o. of abba going to go just on twitter at kaiser reported so much you know. this is says holland kentucky. boy says he was very funny.
a co money city with almost no coal mines left. the jobs are gone all the polarizer said i'd. love to see these people the survivors of a world disappearing before their eyes. i remember thinking when i was younger that if anything ever happened to the coal mines here that it would become a ghost town but i never thought in a million years i would see that and it's happening it's happened. in twenty forty you know bloody revolution to tikrit the demonstrations going from being relatively peaceful political protests to be creasing the violent revolution is always spontaneous or is it just go ahead i mean you know i live with video and they believe as i do split needle the former ukrainian president recalls the events of twenty fourteen. those who took part in this today over five billion dollars to
assist ukraine in these and other goals that will ensure a secure and prosperous and democratic. you know world a big part of the lot 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.
while give easy vow fantasize. and yearn for union said yeah yeah yeah. rationing a south. possession love need the fear. that the new doll cause i'm not. dumb the pull me up my pizza in the zimmer full. of them. is a small fortune in that indeed your good. fortune for the outnumbered a lot of both. more than enough to show us financially.