tv Keiser Report RT December 11, 2018 5:30pm-6:01pm EST
and to the rooms where the servers were took their footage without any. approval from from their from their mistakes and on the floor for for you what you are since national is just catching up to see the red ticket there in the mini box recap of the breaking news we're covering for you french media saying four people killed in a shooting earlier last evening at strasburg christmas market although officially the death toll stands at two at the moment with a level more injured some of them critically prosecutors have declared it an act of terrorism the last hour or so seems a lone gunman opened fire just outside the popular christmas market road eight pm in the evening local time leading to scenes of panic the attack is still crucially at large as we speak tonight the areas under lockdown still including the european parliament which is nearby police say the suspect is known for them twenty nine year old how the criminal record and was on a list of people considered a security risk they have not as yet released his name we'll continue to track the
join me every thursday on the alec simon show and i'll be speaking to guests of the world of politics sports business i'm show business i'll see you then. imax guys are there says their cars are a part going to be talking about predatory oh yeah they're out there. they said they were going to look at predatory lending in this first segment here and you know you could kind of look at china as a predatory lender to america because once again our trade deficit with china has soared them our trade deficit in general is up fifty five point five billion last month so it's. people continue to predatory lending america. you know i
don't know if pay them back but i want to look at this headline because deval patrick has dropped out of the running he was in the running to be the nominee for you know the democrats he was going to run to be the democratic nominee for two thousand and twenty and obama was pushing him so i want to look at the story of. just what you know the likes of obama what they think is acceptable in this day and age for a candidate deval patrick foreclosure mogul how the twenty twenty democratic presidential contender helped a republican billionaire rip off the middle class basically they talk about the fact that deval patrick who you know was governor for massachusetts for a while and beloved there despite his entire record he had to help rolan are now who had at one point been under investigation when he ran a long beach mortgage company. for basically predatory practices towards
african-american population and then he went on to found after that a company called america so ameriquest was one of the biggest subprime mortgage lenders they basically ran and tire predatory operation of driving a lot of middle class especially african-americans into bankruptcy into foreclosure losing their homes and this guy deval patrick who is a democrat friend of obama a very good friend of obama he also went to harvard law. here's a guy who's a predatory lender and obama wanted him to be the candidate for the democrats for twenty twenty well makes you know the democrat. it was about making sure people have a home and getting them into debt and then to kill that debt and kill their home you know the president lemmings games are you know attacking each other you know they don't throw rocks at each other now you throw loans at each other and then hope that the interest rate differential on your loan packages are more advantageous to may than the diff interest rate differential on your loan packages
for you and they are going to bankrupt yourself faster than i can bankrupt myself and that's what the modern warfare so china lending the us money but then they said well you're just using the money we lend you to wage war in places like africa where we want to build our businesses while we lending you money to wage war in places that we're trying to build our business and the u.s. is saying well we lend money to all your corporations that are competing with our corporations in the telephony business and so yeah but our debts are exploding at a different right than your debts and so it's a black hole versus black hole it's not equity it's not even debt because debt is an asset according to banks' balance sheets it's more about waging war using. these black holes. like a financial engineering meets quantum physics and they're just throwing. concentrated exploding balls at each other to no to no avail it's also another part
of this whole neo liberal the uprising against the you know liberalism is neoliberalism uses contracts these are holy sacrosanct documents that you cannot ever you know you know you can contract rules so here they were saying like basically remember after the subprime mortgage crisis saw the largest destruction of african-american wealth since reconstruction and ameriquest was at the forefront of doing that deval patrick himself was being paid something like close to four hundred thousand dollars by ameriquest to be on their board of directors he himself is african-american as well so he. abided over this system because of this neo liberal like it's the contract that destroyed your wealth it wasn't any individuals it wasn't a system it wasn't systemic that's you know this this predatory lending and theft of wealth that happened it was just like these magical contracts that are holy and
divine and brought upon us by some sort of data but i say balls i meant that bomb throwing that bombs at each other and you write about the contracts and of course the terminology is also used by the mafia and they take out a contract on somebody they're going to whack them and. this is predatory lending as they're trying to cut into the mafia business because the mafia is considered to have the best business model in the world and so all these corporations are trying to emulate that predatory debt as their number one source of income and then they all do it at the same time they're dating each other. as what had like rats trapped on an island you know they eat each other and then all the rats are eventually dead so all these corporations and countries are eating each other using debt and they're all going to die. island well we're doing it to the individual as well we have student debts exploding those student debts for example are not dischargeable
you can never escape these debts in the predatory lending sector in terms of subprime mortgages and payday lending we have another headline here because because of the sacrosanct nature of these predatory debts in our economy in our society we have you know the likes of drug runners and drug mafia kingpin sort of people. entering into the predatory lending sector because the courts are on their side they don't have anybody shooting at them they have the court system protecting them and this is an interesting story a drug smuggler built a predatory lending company while free on bail now the complaints are piling up and they're talking about this former marijuana drug trafficker called jonathan brown he lives in staten island he has a company here in lower manhattan called richmond capital and well he has this huge empire in the seven years that he's been awaiting sentencing for his marijuana trafficking around has become a major player in the lucrative field of small business lending from an office in
manhattan he advanced us money to truckers and contractors across the country at interest rates that would exceed four hundred percent on an annual basis rivals says that he brags about making millions of dollars a month they get around laws against predatory interest rates by saying it's a cash advance rather than a loan so he's able to charge four hundred percent rather than i think new york caps it at forty percent what you're allowed to charge on interest but in terms of this sacrosanct nature how they get around this and how they get the courts on their side is a term from religion confessions basically once a give you this cash advance. you also have to sign a confession a document called the confession that basically gives this. lender to you the right to seize all your assets your confessing that whatever they're saying is true when you don't pay back the debt these are extraordinarily
predatory rates they can the court will go and seize your assets yes they'll see what every avenue bank account they'll seize your house and so the courts are brought in because the courts are sitting on property that's collateralized by mortgage debt that's been sold off as well so the courts are going to work with the courts and all the judges and all the lawyers are in deep in debt and they need to pay an interest rate they're part of the debt rat island so they participate with the organized criminals who are waiting to be charged on marijuana charges to get into the predatory lending business you know to truckers in the truckers are moving a lot of the marijuana and they're moving a lot of the material to the bankrupt housing industry and they're totally in debt and their wives are totally in debt and their kids are in school and they're totally in that when you say that the student debts not dischargeable there is another term from the mafia because you discharge your weapon don't you when the bullet casings come flying out and all the students are getting themselves to death
and all the mafia is dead in themselves to death and all the judges and all the lawyers are getting themselves a death dead rat island another called america they're going to replace those fifty stars with rats and all those bars are going to be the bars that debt prison and it's going to be a beautiful debt based future and you can sell it right now and collateralize it and earn interest on it again i'm going to go into this confession element to it and it reminds me of the religion and the sacrosanct nature that we bestow upon these contracts but also the mafia and how they shake down what the how they used to shakedown people in manhattan it's now become legal once you bestow it with the the sacrosanct nature of a contract collecting a debt from a deadbeat borrower used to be time consuming. but some cash advance companies found a way to speed up the process the key is a legal document called a confession of judgment borrowers are often required to sign one before getting a cash advance and by signing they agree to lose if there's a dispute with the lender armed with this paper lenders can go to court secured
judgments against borrowers without telling them and then seize their assets cash advance firms have obtained more than twenty five thousand judgments in new york court since two thousand and twelve most of those in the past two years according to the data compiled by bloomberg news richmond capital has filed at least two hundred fifty confessions of judgment and that period remember again new york is considered like you know very liberal progressive social justice warrior sort of state and here are these twenty five thousand confessions of judgments this is sort of like you know the inquisition sort of level like like torture is like burying you know trying to drown the dead or. the australian plane to sign off on a new account you have to sign off to your right to arbitrate with a jury of your peers you are bound to go into arbitration by the industry itself brokers and bankers and so less than four percent of all the money stolen by
brokers on wall street is recovered for that very reason but they have to take it a step further if they have to confess to your lender in a way that they have access to all of your assets if you don't pay the predatory loans after they make the loans using restraints of course usury is against the bible it's against god and so they. i believe god is in debt and that's why we don't see many more because see so in debt to these predatory lenders on wall street he's hiding somewhere with john mcafee small south american plantation but let's listen to how this is bloomberg business week and how they. they still refuse to see that wall street is the same exact sort of model because they try to differentiate these two the profits have attracted big money from wall street as well as from shady or operators drug
dealers boiler room stock brokers and payday lenders you know they're the same thing they're the same thing if they're operating the same business model they're the same thing you could try to and this is by the way you can apply this to what trump because trump speaks like a new walk like you know a thug from the seventy's from new york from times square you know they they think that he somehow different from how obama operated somehow when he presses a drone but like it somehow shady or and dot year and more evil than when obama did it so here they're saying like they're trying to different well wall street when they're you know the white shoe firms and all these sort of posh people they when they shake down somebody when they foreclose when ameriquest it like that is that is example this drug dealer from staten island this is like tawdry all these women in their territory. wars for the pie in every country's giant every corporations in the world with one notable exception
a country that's actually paying down that never had lowered that russia they were going to take a break coming back right after this don't go away. i've been saying the numbers. they matter us is over one trillion dollars in debt more than ten thousand dollars fine can't be. eighty five percent of global well you want to be old bridge. to pursue the markets or thirty percent it's one of your own with four hundred to five hundred. per second per second and twenty rose to twenty thousand dollars. china's building two point one billion dollars a industrial park but don't let the numbers overwhelm. the only numbers you need to remember one one you know for
a minute the one and only. welcome back to the kaiser report i'm max keiser time now to turn to michael pena of pancho port dot com michael battle welcome back thank you it's going to war it's been so long it has been achieved yourself under other thank you thank you the conflicts they got i wish to thank you but i don't write or coughs actually wingtip shoes let me talk about wall street and wing tip use those are actual temples full of baby fantastic thank you karl is going to some heavy duty stuff here now the trial know the yield curve the yield curve has inverted tell us what that means and then what it means so inverted on the three to five year spread ok it from two to five year is completely flat and people are willing to buy bonds on the longer end of the
spectrum. then the shorter of the spectrum ok what does that mean why do i care well the last nine times that has occurred we had a recession the last one time since one nine hundred fifty five and i heard some person on c. and b. c i did listen to its volume on a made a mistake this morning i promise not to do that again but this person said it's different this time it does not matter because the yield curve is inverting for technical reasons i say bunk ok the treasury is issuing bonds on the short end of the yield curve because deficits are thirty three percent year on year so they have no choice they can't issue bonds on the long end of the zero curve because there's no demand for that but why are you in the long and falling max let me see is it because or you know trump in paying shot cans and everything is wonderful no because global growth is slowing look at the emerging markets look at germany q three g.d.p. a minus sign japan q three g.d.p.
a minus sign and earnings growth here in the united states is going to be going from twenty five percent in two thousand and eighteen to zero or below in two thousand one thousand so people are getting snafus bond investors are scared much smarter than equity investors they're by along any of the yield curve because the fed has maybe one or two hikes left and then that's it they're done and then one and then and then what we have we have a real problem then because i asked myself this question coming up here driving up from central new jersey if the yield curve inverts now and i did between the three and five year curve did invert ok but to basis points but who cares the spread between two intense around is around ten basis points so it's going to happen it's going to happen probably by the end of this year or early two thousand and nineteen but i have this myself this question if it does happen again and looks like it is going to happen as far as the recession is concerned you versions already here and nine ninety percent of the time since world war two it's led to a recession the one time it didn't happen was
a brutal slowdown in the economy early ninety's. what is the global economy what are the global elites going to do about it this time so let's say we have a worldwide recession what did you pan going to do are they going to lower interest rates you know they're still it negative on their discount rate their central bank balance sheet is bigger than the entire economy. european central bank balance sheet is almost fifty percent of their economy we hear united states four and a half trillion dollars now winding down to four point three but the fed is selling six hundred billion dollars off their balance sheet each and every year they're burning cash max so if you you know if you want to make money in the stock market i would just say like this other guy i heard on the n.b.c. say you just should buy stocks and hold them forever because who cares if there's a recession they're not short not long lived their short lived in nature and the
stock market always comes back but the last two recessions the stock market dropped by fifty percent and as i just was alluding to before the ammunition to pull us out of recession just isn't there anymore well that's the point that we should focus on here in other words the you get on the show we've been talking for years now and we're all friends going back to alan greenspan they brought in the thing called the greenspan put right ok so in other words markets were eighty seven crash and greenspan and reagan and the rubin treasury secretary they got together they started buying treasury s. and p. futures they supported the market for the first time the federal government was what was behind the plunge the plunge protection team and they became activist fed yes they were no longer the paul volcker if that's still true right then we went over to bernanke we had the bernanke and the janet yellen put three years of an activist fed not steering or piloting the economy of the economy they are the army they are the rest yes they are that's fine so who bails out the person who smokes
and he doing the bailing out the less i want to thank god i'm on a show like this i could you know it's like a soundbite show i can actually expound on the so ok so we have something called the business cycle right max ok so you talked about one nine hundred eighty seven let's go back to two thousand and two thousand and eight what happens is there's a lot of debt out there and i saw you talking about it on your other shows lots of debt out there well how does the debt come from primarily from banks in shadow banks in your banks ok. banks loan a lot of money to the private sector consumers and businesses they take out a lot of debt and then when they take on so much debt they can't pay it back what's supposed to happen is a mild recession ok but somewhere along the way the central banker said we're going to repeal the business cycle we are no longer going to allow any recession or even a drawdown or even a ten percent pullback in the stock market ok you know john your own power ok remember we're going to go we're way away from neutral we're going to go above neutral which means three and a half percent and you wall street then wall street has
a ten percent pedestrian but now incipit dull boring to correction and trump has a conniption and powell pulls the drain on his whole is whole rate i can command a campaign sort of sort of well let me continue on with the business cycle so what happens when the business cycle and we're debt saturated as far as the consumers concerned then what happens is the government starts to borrow money but who owns the government money because i just said the the personal sector the consumer sector were chattering disabled well central banks by government debt but they're all levered up their levered up to the hilt and use mention on one of your previous programs that the central banks didn't start printing money again i have no doubt that they will they'll stop to a four they'll stop raising rates in the united states everybody else can't stop because they haven't even started the c.b. hasn't even started bank of japan hasn't even started people's bank of communist china is you're such a wreck ok but when they do that you have to ask yourself
a question they might go back into q.e. like you do say q.e. four in the united states but what's going to happen we're in a round of occasions when the whole world now knows. that interest rates can never get above zero by very much at all and the debt that central banks purchased has been permanently monetized i asked carly and i have the answer well the answer is that fia currencies are going to be traded like currency crisis all over the globe it's not going to be the dollar against the yen or the or the pound or or the swiss franc it's going to be all of them but we are going to lose their value against gold like they never had all gone lost their value before hand because because because what is gold love low interest rates and falling fee currencies you're going to have that like you've never seen before right now as a money manager because that's your day job yes that is you know you but i don't
know for many years you are a big old advocate and we are in a period where gold underperformed so how do you as a money manager i'm curious because i worked on wall street too for many years how do you kind of keep nursed opposition along while still having exposure to the stock market even though you don't believe stocks are priced in a way that's sustainable you still have to participate as a party manager money that you can nurse so i have a way that is i have a tell you when i run sort of a hedge fund is an r i a but it's like a hedge fund so i have the ability to have a model that i created to twenty point model inflation deflation an economic cycle model and that model said being underweight gold for the past few years and believe me only only five or ten percent position in gold was horrible was horrific so actually in the minors it really hurt your performance but the model tells you when to go long gold when when interest rates are falling in real terms and when fi
currencies are losing their purchasing power to seriously at all yes you have you've got a lot of short so what i've been i've been long utilities i've been along the u.s. dollar i was short emerging markets and just today. nine thirty in the morning i went short on some inverse e.t.f. that we were very successful when i bought them in september really yes ok so this isn't the model for you here it was short the market yes i did but that portfolio the way you're describing there is kind of like with the pack it's not all that you know what i mean well whether it's it appears that well let me say with that how do you know the fact is it was three packages i'm going to tell you that i can beat the s. and p. five hundred that's what everybody does and they're going to charge you a huge fee and then eighty percent of the time they don't do it if you just go out and buy yourself s.p.y. as well you have to do and you're going to be eighty percent or less or more of money managers but what i try to time the market you can time the market you have to know what sector we are between inflation deflation and the economic cycle hit the news that i'm going up to ok so now when the market has these turns let me
guess talk the yield is inverted yes a cyclical that ain't one of my composure you know my you your portfolio is ready to outperform in a big way because you you are you go you go ahead yes now you're going to go ahead be sure in a short and are going to go long gold and if that all plays out you guys are going to shoot the lights out yes so i have the twenty but you know you want to buy me lunch and actually because i knew lots of the last three times you know you aren't even for their ideas on a story you know interest rates is long besame out if they see comes along a buy you breakfast lunch and dinner ok that she's got a new jersey yeah that's fast i'm going to watch you like i got to watch you closely come in here to the slick outfit the suit and next thing you know you don't have any you brad and breakfast with us. michael pena. does continue this last line clinics while you get your place can i just mention something to you the
problem with the with the u.s. market and the global economy in general has almost nothing to do with tariffs how did this start. it already which i know i can see we're simpatico i know you know so china was slowing down profusely before we even had to talk about tariffs why because china took on between the year two thousand and today they went from two trillion dollars in debt so forty trillion dollars in debt credit card debt problem the usa have there is no country on planet earth that took on thirty eight that percentage of debt thirty trillion as a percentage of two ok in that span of time in twenty years i mean the point is they seen us. between the us and china for global supremacy the problem china has too much debt relative to the us and then we have the where the what the will the most wonderful china where the jury what we are the amoeba with the highest i.q.
is what i look what i like to say but when china went to you know they had also wanted to repeal the business cycle so they sayd to build empty cities you know i said this is a shocking statistic i did make this up to secure twenty percent twenty percent of all edifices in urban china already right ok so when they had their fill of paving china they start paving over with their belt road initiative the entire. eastern european nations and taking over their ports and their roads ok this is a nation that is in deep deep trouble china is no longer growing bold words from michael pant of plant pork dot com i predict he'll be outperforming just about everybody on wall street the next twelve months except bitcoin. well thanks for watching the kaiser four with me max kaiser and stacy ever like to thank our guest michael petro ports dot com if you want to catch us on twitter it's kaiser report and so next time.
u.s. secretary of state mike pompei always declared multi-lateralism in international affairs a failure what is needed according to him is a new liberal order led by the united states such an order calls into question some important issues does this mean the universal is ation of american law and limited sovereignty for the rest of the world. since you were pointed to the losses since canada comfortable. impressed me with. what was going to happen when you got to what. the fuck you're. doing you doesn't.