tv Keiser Report RT May 9, 2019 5:30pm-6:01pm EDT
headline we might have some say a clown joe biden called him a clown in the white house and he's wreaking havoc via tweets with tariffs and trade or some market crashes and then market on crashes and things like that but central banks have always got the bankers back central banks have almost eliminated recession's venture capitalists says this is from c. and b. c. central banks have created an environment where both major downturns as well as expansions are almost impossible said venture capitalist. last week he said i don't see a world in which we have any form of meaningful contraction nor any form of meaningful expansion we have completely taken away the tool kit of how normal economies should work only started with q e i mean the odds that there is a recession anymore in any western country of the world is almost next to
impossible now save a complete financial externality that we cannot forecast and then. talked about in a positive or negative way are you saying it's a negative way because he's seeing a japanese like future for us that will never be able to therefore grow above one percent because of the fact that we can't have a recession which is normally part of the business cycle where companies that can't deploy capital efficiently companies that can't build innovative products get destroyed and all the things that go with that including the job losses from that company but when they are destroyed then that capital can be redeployed towards companies that can use that capital in a better more efficient manner and you know build things and create wealth instead we have a zombie's kept alive and he's saying that you know it's being sold to the public as well never have a recession again. and no matter how horrible your company is you know it's
a very soviet like system where you're like no matter what you have a job you have a job guaranteed for a life your income will your wages will never increased by more than one percent because the growth will never increase by more than what's interesting is that is it's not a new revelation i mean this is something that it's been a problem for twenty years now and when you have like charles charlie monger at the berkshire hathaway annual report commenting on wells fargo a saying that the when they opened up a million fraudulent accounts and they stole money from people when he says that's a quote honest mistake right that that's the result of a guy who's confident in his ability to cover over every every every fraudulent activity that berkshire hathaway has been a party to with free paper money from. very very corrupt central bank right so and as boss as. yet said back in the eighteen hundreds if
the if the society is run as a as a looting society evoluting is permission to buy. berkshire hathaway buy buy war i doubt if it's that. if looting is allowed and applauded or ignored then yeah ballooning throughout the entire society so i mean clearly the medical establishment is looting and they're killing clearly the banking establishment is looting there's very little part of the economy is just not right looting and if they're raided by a corrupt central bank ok fake news is in the news all the time people are talking about propaganda and they tune in to one of their partisan propaganda channels whether it's fox or c. and b. c. or c.n.n. to hear the propaganda they want to hear that sue them and what i'm pointing out here is here's a venture capitalist a multi-billionaire who. is invested in some of the biggest companies on earth and
what he's saying is yeah you know your candidates running for democratic primaries or donald trump will tell you that low interest rates remember don trump is saying we need to slash interest rates by another have a hundred basis points what they're not telling you is who that's good for people the people being harmed by this are the ones actually cheering for the hardest and the deepest they're the ones that cheer for a medical system and a health care system that is totally fraudulent and cost them three times more than anywhere else on earth but somehow they're sold a package of goods here he's saying that central bankers have lost all intestinal fortitude to actually put a country through a recession because it's actually regenerative and useful even if they had the wherewithal to do it the political infrastructure will just completely absorb that intent so we are probably not save us something crazy going to see massive massive negative growth except in countries that are so fundamentally crippled that they tip over the entire world that western economies have safe spaces
everywhere and we got to the point where we are so afraid of bad words are bad economics are you know a recession anything that's negative has to be eradicated and thus we have a situation whereby will never be able to grow it's just states this is just like nothing out of jail also get us on the global macro level for psychotics so for americans they have this delusion that money is given away and for free and they like that ok so the global trade though is countries grow through export trade and if your currency is being debased constantly like china just rocketed down their currency because of this trade war that's heating up turkey's currencies in freefall various other countries currencies are in for argentina venezuela because the u.s. is not allowing its. currency that any traction in the global economy they're
letting it free fall ok so americans are like well we don't care because the warren buffett says it's a good idea charlie munger loves it so there are unseen b.c. that must be ok so the currency is in freefall there is no gold standard there's no way to reconcile this in the in the world so every other country is competing it's a race to the bottom at the same time it's fair to say that there is now several countries that you could i think characterize as being on a war footing so the u.s. by saying well we don't have a recession anymore and we don't have any any pretty the lection to defend our currency value in any way they are opening the door in a big big way to extremely violent global conflict ok that's what the u.s. is stoping what this forget about the economics for a second there stoking an incredibly violent reaction or it has never been possible we've covered this the safety statements about gold and how that at least made war
more difficult to do if you wanted to engage in war you had to give up all your wealth here there is no wealth there's no wealth creation isn't an objective anymore in our economy because without a gold standard you can't measure wealth so here even again like i'm saying the bottom ninety nine percent will like scream out of control in front of the white house saying we want interest rates cut we want lower interest rates and they have no idea what they are talking about because here is the dutch central bank admits their rich get richer when we print money and yet every ordinary person will tell you most ordinary people those who watch kaiser report will have a different opinion and understand it differently but they'll say print more money print more money print money we need more money we need more money the netherlands central bank has just published a fascinating new paper titled monetary policy and the top one percent evidence from a century of modern economic history they looked at one hundred years of data they find that loose monetary conditions strongly increase the top one percent. income and vice versa and fact following an expansionary monetary policy shock the share
of national income held by the top richest one percent increases by approximately one to six percentage points there's no economic benefit it doesn't increase capital expenditure it doesn't create any meaningful manufacturing jobs it does nothing to enhance the economy it doesn't create savings you don't create capital which is the basis for capitalism the only objective for money printing is to put it into the pockets of the top one tenth of one percent that's who demands the money printing that's you benefits from the money printing the average television watcher of cable news watcher in america they work as maize or as help caretakers for these people getting all this money and they may get an extra twenty bucks for christmas they like to see this policy is great because i can go out and buy a hypodermic needle of myself up at starbucks this is a fantastic economy you know for every billion dollars they give some shyster in the club talk or see some idiot caretakers make an extra twenty dollars bonus
a christmas and they're like i love it meanwhile the rest of the world doesn't even get twenty dollars they don't get anything and they're in extraordinarily stressed out situation historically we can identify as being the preconditions for some nasty stuff again back to these stories here we've said this this is no known fact cantillon you know came up with this theory and he noted that this would happen that those who get the free money first because when you're printing money it's going directly to the bankers because the central bank can only give money to the bankers to wall street and they distribute it usually to their own savings account i k that's why that happens that's the cantillon in fact when you print money the rich will get richer head of world's largest hedge funds as adoption of an orthodox monetary policy is inevitable so this is ray dahlia oh he's the head of the largest hedge fund in the world he's the highest paid hedge fund there in america and he's looking around. he has benefited or nor mislay that's why he bought i think he was
lying about that two engine and thirty six million dollars apartment in new york now that was ken griffey that's ok these hedge fund guys are able to spend two hundred fifty million on an apartment that was one hundred million just a few years ago they don't care somebody will buy five for five hundred million the more money you print an order because the population demands that the central bank prints more money to save the economy because that's what they're told or not told more importantly by rachel maddow on m s n b c they tune in there and they don't see all that money printing going on but he's saying that there are some people some millennia old are noticing you know those who are struggling to get by on their student loan debt and rents are so high in health care costs are prohibitive so they're the ones that are demanding m.m.t. the monetary modern monetary theory and beyond. predicts something called m p three which is a monetary policy. plus fiscal policy to give these people more money because they
do see their wealth and income gap and they want their for free money that's right they think best of people's bailout as m.m. say is that somehow that people are going to get a huge cash benefit like the bankers got a huge cash benefit through quantitative easing i think this is their version of it but it's you know it's obviously a nonstarter because you're relying on a group of people to make intelligent economic choices and that historically has never ever ever ever ever ever worked hundred thousand two hundred thousand years of human history this is going to these guys wall street controls our financial system and our government so they're not going to allow money to be printed for the ordinary person because then that causes hyper inflation they want to print money just for themselves of his just for the point zero one percent of the economy then they can contain inflation by basically austerity. like pulling more away from you
and benefits so that's the way they can like control their wealth fascinating when we come back much more coming your way peter schiff oh peter schiff les stay tune. join me every thursday on the alex simon sure and i'll be speaking to guest of the world of politics sport i'm sure i'll see you then. when the first century both of these. elements. and of the moment. people would like to interact with the team which is happening to. facebook through to another interacting with. it's going to.
be seeing the results of. a recent report from the u.k.'s foreign office highlights in detail the persecution of christians around the world in the middle east the cradle of christianity christians face extinction why is it deep politically incorrect in the west foundational religion. welcome back to the kaiser report i'm asking as our time now to go to international provocateur a trouble maker all around nice guy premier money manager and famous money guy peter schiff peter welcome back to the kaiser report thanks max as i bet on the
kaiser report i'm glad to be back ok let's get into it so g.d.p. was up three point two percent on employment and forty nine year low markets are at a new all time high while peter schiff was right in two thousand and six two thousand and seven what did you get wrong about the aftermath of the two thousand and eight two thousand and nine crash peter schiff well i think the main thing that i got wrong was i assumed that the fed would not succeed in their efforts to reflate the mobiles i thought that before they succeeded the bottom would drop out of the dollar that investors around the world would figure out what was going on and i got that part wrong so instead of just sick attempting to reflect the bubbles they actually succeeded but that simply means that the ultimate collapse is going to be that much worse i think the problems that i correctly identified at that point haven't been solved in fact they're bigger than ever so i think the u.s.
looms on the precipice of a much greater crisis now because we successfully kick the can down the road and the laid the day of reckoning all right now despite trillions in money printing sense to crash as you point out there's been a lot of money printing they reflected the bubble gold has barely responded what about this peter well again that's part of the optimism of people still believe that the fed solve the problems they still don't understand the you know the situation as it exists so you know gold has gone sideways imber gold went up dramatically leading up to the two thousand and eight financial crisis it went from under three hundred to one thousand then it pulled back. the crisis hit and then when q.e. one was launched and people started to worry about inflation and the fed creating too much money gold moved up to one thousand one hundred but then it pulled back when everybody began became convinced that the fed was going to be able to successfully unwind the program they were going to be able to normalize interest
rates and shrink their balance sheet and so all of that caused the dollar to rally cause people to take profits in gold but i think the next big move is going to gold and gold is going to coincide with the realization that that was all a bunch of nonsense that the fed could never under why in this policy that we're never going to normalize interest rates that the balance sheet is never going to shrink by any meaningful way in fact the balance sheet is going to balloon to new highs and the fed is going back down to zero and i think the fed began that process earlier this year when in response to a sharp decline in the stock market at the end of last year the fed did a complete about face and basically called off future rate hikes and said that quantitative tightening would end prematurely with the fed's balance sheet pretty much where it was when it started what has so ordered a sense the financial crisis is bitcoin there's a new campaign out right now has to drop gold by bitcoin definitely
got i think tension a lot of gold bugs out there it's bugs versus versus the crips your response peter schiff well you know i saw the commercial which i thought was kind of ridiculous you know because it depicts people lugging around big huge bricks of gold which if they actually existed would be multimillion dollar bars i mean these things are enormous and somebody is pushing around a shopping cart full of them like you know tens of millions of dollars like the average millennial if he put his entire net worth in gold it could be his pocket and nobody would even notice it was there so it's not that people are being loved by gold i mean it's a farce. but of course you know i don't think it quiet has anything in common with gold i mean it tries to pretend to be gold but i think it's fool's gold to make sure i mean you know it has some of the monetary properties of gold but none of the commodity properties and you can't be money unless you're commodity first by definition money is simply the most liquid commodity and bitcoin has no intrinsic
value other than the fact that people are willing to buy it because they think they can sell to somebody else at a higher price that's a lot of money that's a ponzi scheme right you make the point that gold in your view has utility whereas that client does not have any utility the only use for bitcoin is in syria as as a trading vehicle i mean you can potentially use it as a media of exchange but it's very expensive to do that and very cumbersome you know you could trade it so you could trade anything you know until the bottom drops out i mean people were trading you know beanie babies and you know they bid him up although least i guess that's not a great example because beanie babies do have some utility i mean they're kind of cute you can you know you can you know you can hold onto all and you know you throw my your bed and you know kids can play with them but you can't do any of that with because i was looking at some recent analysis by. various academic studies exciter and they're pointing out they do the research and in the case of gold of
course less than ten percent of gold is used for any itself hereon purpose. more than ninety percent is strictly as a store of value and that utilitarian purpose electronics for example a lot of us being substituted now so the utility value of gold right now is less than ten percent of the gold out there and it's dropping to go it's going to go away but the overwhelming majority of gold is held for. as a store of value and the overwhelming majority of bitcoin to sell as a store of value. to the max there's no. value store and big coin i mean the fact that gold does have a use and it's ironic that the big quine's that are mind are mind using chips that have a goal of side the people who use big coin on their smartphone the smartphones all have gold i mean gold has a real views and when you're storing gold you are storing that use i mean that
meaning that you can melt down your gold and use it for any purpose at any point in the future but when you store your because there's nothing that can be done with big going today and so there's nothing that could be done with it in the future and so when you're storing it you're storing nothing it's an ongoing debate and but the market seems to be favoring this new gold two point zero zero and like tronic versus the gold certainly in places like venezuela argentina and that are much more accessible and as a store of value to preserve wealth they're going to bed klein i don't i don't see that happening back so they're certainly not using it as a medium of exchange it would be far too expensive for people down there to actually utilize it as a medium of exchange so i mean this is wishful thinking on the part of people who are hoping that that big one becomes money although a lot of people have given up the hope that will actually become money and they think it's just going to be a store of value but i get i don't see what value your story if the only function
it has is to hold onto it and hope that you can sell it to somebody else at a higher price and i just get the compared to go all the value of all those demesne amiss and fading it's not to minimize it all gold is the most valuable the most useful precious metal or metal that exists on the planet earth and that is going to al you know i mean that's a sound and not an element sound as a store of value that if you go and it's stores value that's what it is for you know if gold were less expensive it would be utilised more frequently there is real world demand for coal and that will always exist it always has existed that's why it became money in the first place because it was such a highly valuable commodity. he wanted it was a luxury good it was a it was a valuable commodity for him probably centuries before it became money but big quine was nothing until somebody discovered it and it's never been used for anything other than as a speculative vehicle for you know for a gamble that's it people are buying it and hope and hoping they can sell it
similarly the price of a coin came down and the base of users went up dramatically and i got his additional participation fidelity other institutions coming on fatalities get it back but only gave up on it they blew out of their quick go investments they basically canceled their plans to use it you know my company that i'm involved with gold money which you know about they had to give up all of their crypto prop they were initially allowing their customers to transact in court though but the compliance cost went off the charts the regulators were cracking down on them and they couldn't afford to stay in the business you know this is a quick update that fidelity just announced that they are launching just now and that late breaking news is they are getting into new krypton a huge way they're offering those are not client yeah they are that may just that's just late breaking news they can update your files on that as well as other institutions are also starting to offer it as well because the market demands it so we and i'm sensitive to the market the market sense to. show some direction beyond
what any and in anybody might think of my do it's the market rules the markets clearly marline a lot of people who own a lot of big coin have a reason to want to get more buyers into the market so they can sell i mean i get that but i just don't see enough new buyers coming out there i you know i will say i'm going to this conference you know in las vegas as a lot of institutional type people the sky bridge alternative asset conference i'm going to be doing a debate you know on gold versus bitcoin we'll see what kind of appetite there is i mean i know that people on wall street hate. i want to buy stuff that's hot i mean these guys will pilot anything if they think it's going to go up but of course you know they need to get out before the music stops and wall street doesn't have a good history of doing that when you know they get into bubbles but they rarely get out before they pop ok fair enough i just so they can do a search for the citadel they offer a script a currency trading within a few weeks this is on may sixth it's kind of late breaking news as we know
fidelity and we know that their initiative there is substantial and they'll be offering this in a big way but i take your point so in vegas there's a debate coming up barry silbert people can look for that another exciting chapter in this ongoing big gold debate let me get your thoughts on nine trillion dollars a negative yielding debt in the world right now peter schiff did you ever imagine that was even something possible i mean you've done a lot of writing on the history of money the history of economics i mean negative yielding debt up until a few years ago it was never ever considered it's what's going on here peter well it just shows you when you go from the extreme that there are through the ridiculous when you're talking about negative rates but this just shows you the extent to which the banks the central banks are going to try to you know preserve this narrative that the answer to every problem is to lower interest rates because they keep lowering them and the problems keep getting worse and then when they get to zero they end up going negative but clearly this is
a creation of government no where in a free market would somebody loan money at a negative rate of interest i mean why would you do that just hold on of the money the idea behind making a loan is to gain interest on your money so that you have more money it's not to lose money so this is all ridiculous this is going to end a disaster and you know by the way even in other countries where you have some type of a positive yield like the u.s. in real terms if you adjusted for inflation in taxes the yields are still negative so you know nobody is getting a positive rate of return by under consuming by saving by loaning out there. the money they don't consume and that is a huge problem for a market based economy because in a real free market savings and investment are the source of all economic growth they're the source of capital investment and increased labor productivity but without a positive incentive to save you don't have investment and that's why you have this
you know phony economic growth that's why you have this widening them between the very rich and everybody else because the government is maintaining this type of monetary policy but this really is an ideal policy for gold because gold is actual money all of these currencies are money substitutes but for quite some time people preferred the substitutes because they did get a positive rate of return and there was no interest of bailable on gold if you put your gold in a safe return no interest but clearly zero interest is better than negative interest. and pain are going to have much competition now we have a fair are going to cut it there for a thing called jennifer otherside meant thanks for being on this episode peter schiff and that's going to do it for this edition of the kaiser report with may max kaiser and stays there and like to thank our guest peter schiff of europe the staff and capital if you want to reach us on twitter it's kaiser report and so next time by all.
is this is a stick to from the little phone in the stomach of the fish the brand is sponsor of the coca-cola company which zooms millions of bottles of soda every day the idea was that let's tell consumers they're the bad ones they're the litterbugs they're throwing this away industry should be blamed for all this waste the company has long drawn is to reuse the plastic. onto the shelf as the seeds to collapse and six thousand is found in maine that seems nonsensical something to classes on land. the new phones that special projects funding he tells. me on i knew that that is the end of a footy team but fun now the mountains of waste only grow higher. during
the great depression which i'm old enough to remember there was most of my family were unemployed working class there wasn't it was bed you know much worse objectively isn't today but there was an expectation that things were going to get better. there was a real sense of hopefulness there isn't today today's america was shaped by the turn principles of concentration of wealth and power. reduced democracy attack solo down to engineer elections manufacture consent and other principles according to no on chomsky one set of rules for the rich opposite. that's what happens when you put her into the. narrow sector of will switch will is dedicated to increasing power for chills just as you'd expect one of the
most influential intellectuals of our time speaks about the modern civilization of america. pressure mounts the seventy four thousand of us free of the end of the second world will save crowds. in a tribute to the loved ones. and karsten. on red square. the victory day parade took center stage there this morning with more than thirteen thousand troops and dozens of all meant big bills passing through the iconic signs . in other news this thursday wrong sat silent its nuclear deal ultimatum.