tv Keiser Report RT March 17, 2020 12:30pm-1:00pm EDT
no max kaiser this is the kaiser report well you know things are turbulence and we've got a lot to cover so stay see what's happening yes max we've been talking about this preparing you for years for this this financial pandemic it's not too much of a shock we are seeing very $929.00 or $987.00 sort of like plunges in the stock market and of course those rallies that followed 929 in fact here is the headline from dow jones market watch this plunge looks a lot like the ones that rocked stocks in 192-998-7200 extension 8 if it keeps tracking a lookout well this is an interesting that they're making the 929 comparison
because it reminds me back in 2008 speech made by ben bernanke who was then running the federal reserve he was a successor to alan greenspan and he was doing this great lecture about how they cure the crisis of 2008 because they have something that they didn't have back in 1929 they have the printing press and this began a continuation of what alan greenspan did in the 1987 crash was to print their way out of all problems and the idea was that oh we can stop printing at any time and this is all been proven to be false you can't taper a ponzi scheme furthermore they claim to be fighting deflation by all this printing and yet what they created was deflation and deflation in the sense that what we're seeing now markets are collapsing and the dollar is rallying that's a hallmark of deflation why was it why is it what why did this happen because of money printing because the money printing gave
a lot of cash to the worst actors. in the economy banks pushed out of all productive economy and we end up now with an official post-mortem to what started in 20082008 was the global financial crisis this is part 2 and this is the death you and i were reporting in 200-720-0820 extension 09 through the entirety of the financial crash we started at something like 5 and a half percent interest rates at the fed so they were able to cut rapidly once bear stearns collapse in march of 2008 remember they did a 75 basis point emergency on the sunday night also central banks were coordinating and working together we were not yet in the process of rapid decline this time we are in a process of d. globalization so though gold is very volatile i think you're going to see more central banks start to try to accumulate whatever is available for this post crash
whatever is going to happen it's going to look very different so nobody could genuinely predict what's what might happen but i think structurally our economies will have to change in some ways it'll be better because jobs will have to be brought back to the u.s. because of this decomposition and because of the exposure that we were exposed as being very fragile that our economy was held hostage by the fact that we weren't able to manufacture personal protection equipment example for the stuff for a couple of years and the idea that the central banks around the world going to start buying more gold i think they would love to buy more gold now but there's very little to quit or be out there is going to be difficult to buy gold the question is now that the music has stopped. who's got the gold and of the last 510 years we know 2 big players have been accumulating hundreds and hundreds of tons of gold and that would be china and russia and win the gold held by some european countries and the i.m.f. they've got equal gold to what the u.s.
has so now we've got gold parity and we've got the ability now to rework the world currency order a new bretton woods they've got to go back to gold as they always do i don't think the us has a particularly strong hand this time but we'll see again looking at 1929 s. and p. 501029 analog update it is tracking it looks a lot like 1929 and of course after 1929 we had years and years of just tedious side weight ness and long depression i do want to point out that you and i have also been talking about the intergenerational warfare the boomers versus the millennialism generations e. this could see for example a lot of boomers have to stay in the work force for the next 1015 years beyond what they were expecting if they're for a one k.'s are wiped out just as they're getting ready to retire because the youngest of the boomers are only 5960 at the moment so you know they still have 5 years before they can collect medicare and if this crash mirrors what we saw in
2008 then we're going to see a 40 percent 45 percent decline if it's nearing $1029.00 then we're going to see 80 percent decline how long it stays there however is one thing of course we've never had such an activist central bank but i don't think that's going to be enough i think you're going to see very extraordinary fiscal responses this time to put this sort of perspective perspective right you have an 829 crash which was followed by the depression. you had a massive recession in the 1970 s. due to the oil shock oil price of the time screamed higher and caused a major recession then in 2008 we had the subprime crisis. and that was considered to be the greatest crisis sense of the depression and that's how they build this $750000000000.00 tarp bailout which became closer to 17 trillion dollars what it was all said and done now in 2020 we have what would be historically considered one
of the greatest financial crises of the past 150 years and where does it fall into the category where how do you classify it i think we're going to see a global depression and to your point how quickly do we get out of it the activist the problem there is their prescriptions last far have caused the problem so they're actually the problem there needs to been fed the central banks need to be removed from the equation because they are the problem i think the central banks will be removed and that's something we'll see over the next few years however we also are in the process of deed lobel is ation and of course trump is calling this a foreign virus for the chinese virus of the china virus of the one hand virus so let's turn to what this could mean for china this whole day globalization process as i said you know the central banks and the government are no longer working together and especially in the west so when we saw italy start to really enter
their crisis and pandemic mode and they had to shut down the entire country this was an interesting situation china is emerging as a global public goods provider as the u.s. proves unable and unwilling to lead this is an important development and if the trend continues it's one with potentially serious consequences for the u.s. role in the world and he was responding to another tweet which was fax with data about what china was doing to help italy out remember all these other countries like france and germany shut down their borders to italy they wouldn't allow any. personal protection equipment medical mask or anything like that to go to italy because they wanted. preserve it for their own country and a call between 2 foreign ministers china agreed to supply italy with 1000 ventilators and 2000000 masks additionally they are donating 100000 respirators 20000 protective suits and 50000 test kits as part of
a massive aid package right well this is interesting because remember when trump took office c. was very condescending toward the notion of globalization and very condescending toward all global type of organizations like the united nations the so-called globalists were the enemy at the same time the leadership in china made a very strong statement saying we are pro globalization we believe in globalization and now 2020 the crisis hits and the 2 different schools of thought are in play so america is becoming insular and they're saying no no we don't believe in globalization risk like we're just going to close our borders and china is thinking well the only way we can grow is if we have a globalized world because we're a huge export market and we need export markets to export to maine similar thinking was in place after world war 2 during the marshall plan right america resuscitative europe. yeah it was a nice thing to do but it created
a market to sell to and it created a debt market to buy into and sell to and so i think china is thinking more in those terms this happens with the collapse of every empire that's a period of de globalization and then a period of hyper globalization follows as the new superpower empire takes over so the brits when they started to lose their empire they were against free trade and and were all for shutting their borders and contracting and taking what power they have left you know internally the u.s. is doing the same i think in the long run i think it'll be better for most workers i think because we'll have to produce our own stuff here so i think it'll be better for us in the long term and. we can just remove some of our hundreds of military bases overseas and start instead deploying those resources here domestically i think i could be wrong but i think that's going to be the better thing for us at this moment because we went too far in that other direction and sent all our wealth overseas and then here is a tweet this was from about
a week ago but it got overlooked in all the other news of the chaos in the markets china just announced a $25.00 trillion dollar room in b. which is $3.00 trillion u.s. dollar plan on infrastructure investment yes trillion of dollars into sectors as 5 g. electric vehicles cloud computing smart manufacturing and internet of things as we just discussed you know the u.s. is retreating china is planning on expanding and that they go into this as the strongest player they do have a lot of corporate debt and debts as well so i don't know how they'll end up working that out but that's for the next few years to decide right there obviously you know gambling for the future you know you made an interesting point about workers and does it benefit workers so looking way back looking from a 1000 years back you have to go back to the plague years in europe to find something that was equally beneficial to workers you know because of the plague and
because so much of the population in europe was wiped out by the plague service at the time for the 1st time out of the go shaving ability to and this was the beginning really of the middle class where serfs suddenly could negotiate it was like a massive strike so no workers were available and they had to bid higher for that so in the last few moments here i just want to say that there's another trend that goes with this to globalization and globalization because it is always a volatile period throughout history and i think you and i identified very early on you coined a phrase giago global insurrection against banker occupation because the us is an empire of debt and i think that was what you're seeing and the economist even picked. now a new study suggests the number of mass protests globally has increased by 11.5 percent per year on average since 2009 that's when exactly when kaiser report started and it's been going up 11 and a half percent a year and it's also exactly one big point started and for the 1st time in history
through the super cool for sure. there was a news new york. who should be the chief. feeling i used to school for the 2 of them would not only do this movie but i will. show us no. good. blushes and then she chewed the cheek a total horse in the village he cut the horse to a team your he said it's not that it's indeed some shots that always sting against . you did a. beautiful
girls in a circle included at least then you got a little bit i was going to want to have. to show yeah form which we believe you shall is. given to us but to the south korean his wrist oh i'm not to be. summed up. the money or what you call british mr west imo sure because. welcome back to the kaiser report on my faster time how to get a job ribena dollar collapse dot com john welcome back to matts good to be back the
fed has injected at least 1.5 trillion dollars into markets just in the past week here thought this is the most eventful couple of weeks in financial history that's about but i think more is coming it's going to be more eventful going forward and you know we're other than the fact that it's a pandemic popping this bubble we're following the script pretty well in which we have a gigantic financial crisis because all the debt were taken on and then the central banks of the world react by basically letting the system with cash and bailing out everybody in sight and that's the stage we're at now where. they know they needa shaka know right now because they know that the global financial system and the government actually system are shutting down so while it's not clear that there are any financial tools that 6 a pandemic. is still going to try because the only tools they have are easy money
so you know that in the last week or so there are big conference calls all over the world with central bankers and prime ministers and presidents talking to each other about you know what they've got to do how big the number house to be to calm things down and so that's what they're trying to figure out now but they start small with . the fed funds rate by 50 basis points and now they're into q.e. they're adding you know huge amounts quickly to the system and we'll see if that works i suspect not yet but we're going to reach a point where the numbers are going to be astounding and the stuff they're doing will be just experimental to me like we're going to have to buy equities in the u.s. sure but you bet has been doing for a while now but on a much bigger scale so this story going forward is going to be central banks doing more and more amazing. basically until either we fix. the system and go back to normal growth or the world the occurrence is just
collapse. you know the end gave it is that collapse in n.p.r. currency values because we've created so much money and everybody figures out that it's the policy of their government to make their currency were less and less every year and they just bail on the currency which is the cost or in school of economics practice so we're heading for the question is it do we get it this time around or to replot somehow. so either way to buy ourselves i'm never. you know i i don't think we could do it it's 2000 that's not but that was the end of the system so i'm not a you know a good source of predictions about whether this works or not but it doesn't feel like we could work i mean the numbers are just too crazy and and the numbers are going to get through here so we'll see it but you know we're living through from a finance geek standpoint the most interesting time because it's sort of you know.
history books a century from now are going to devote chapters what's going on right now because this is so amazing and potentially so destructive so i think for the only purpose it's going to be for. the absolutely terrifying one where lay said 2 things there that i want to focus on one you said this is a debt crisis and they also said that we're going to expect the central banks to try all kinds of new things i've never seen before and that's been the story since thank you 97 and the ballad of austrade after the crash of 87 when alan greenspan gave a green light for the plunge protection team but to my question john and that the central banks can try all kinds of new things new financial engineering new quantitative a saying new repo write ballads. but at the end of the day it's just more debt somehow as you say the crisis is caused by that and the solution from these guys
will be to increase that correct you know we're going to battle a debt driven crisis by taking on more debt which is what you said is what we've been doing since the the $990.00 s. at least with alan greenspan bailing out everybody in sight. and there's a limit to that but the limit is much higher than that originally seemed like it was you know because in part because an unlimited central bank printing press is a great tool for what would people in the beginning the world is basically ok and in part because it's global everybody has a fee a currency printed press so all the different countries can watch each other's backs and the fact that they were able to cooperate in this you know essentially of a global long term inflation. has meant a big they will get away with marketing the should have but the cost of massive increases in debt. and there there is a limit somewhere there's a number of weeks yet. but we won't know until after the fact what that number is
you know i suspect it's pretty close to where we are now but chances are that for sure. but yeah from here on out we get more and more experimental we take bigger and bigger risks and i do think the. well bailing out all the industries that are going to blow up because of the 'd coronavirus is one thing that's going to happen and by equities on the grass it was about. now this these things basically short circuit capitalism because you know 2 things in capitalism work to work you need failure you know you need in individuals and companies and industries that make bad decisions to lose to teach the rest of us how not to be a. second at a certain point death stops being stimulus and starts being depressing of economic activity you know becomes deflation. and a bad waves there's really not much less you can do or you know when the marginal
utility of that never was the bag for each new bar a buck drops to 0 and you're out of a emma and we're headed for that you know the line is dropping some topically it's worth 0 and when it hit 0 then it's game over for all of this so it's now a question worth trying to at it because we're really 6 months away from that are we 5 years where. we can't know that and we can't know what'll happen to equity prices on the web maybe if the governments are buying up all the all the common stocks basically doing got a leveraged buyout of the private sector on the part of the government maybe they see asset prices on elevators but little while longer but the cost of basically the end of the wealth creation price signaling mechanism of capital and then that's basically over for the system we've known for all of our lives and you know we're perilously close about what it reminds me of a medieval churches in france they have to throw the corpses into the basement and
that they were unaware that rotting corpses and they death that was underneath them was making them sick as they were praying to go to heaven upstairs in the pit so he kept crying. more debt and throwing it into the basement and i wonder why there's no inflation. you know this idea of creating debt is going to somehow create inflation and set of create more deflation seems to be a point that every major economist in the world missed paul krugman at the new york times doesn't get it danny glass flour never understand this no economist who opens their mouth today seems understand that you this money printing the quantitative easing they say is to fight deflation they don't understand that they're causing deflation but i want to ask you about more of a historical point you know during the 1930 s. after the crash a fine line the market of course went through an 80 to 90 percent crash but that
was punctuated by these rallies the spikes as that we're going to see this time i think john yeah we could easily see more volatility here on the upside as well as the downside and that that's even what happened just back in 2000 where you know the system started to implode because it's approaches and we saw i'm not just steady downward pressure of sucking sausage huge not as big as the ones recently but a lot of all this will be so yeah you know when central banks are in the markets with basically unlimited amounts of cash they can do all kinds of crazy they can make things go 'd up for a while and then it's off to go back and you know all of that happened so that makes the details of what's coming completely unpredictable you know the broad outline that ok we're taking us. now monetary policy is going to try to salvage the
. currency of the world we're going to have you know i think that's kind of big. but how we get from here to there is very unpredictable because it has a lot to do with the decision so you know guy sitting around conference table is under pressure and. and happy extremely colorful tools at their disposal so we don't know how this will play out exactly but we know one thing we know is that the guys with the monetary tools are clueless as they don't understand the power of the playing with and the 2nd is that beyond a certain point when death is a manageable you know you borrow money and you're good about it for a while but then there reaches a point where there's nothing you can do anymore that you only have some kind of a collapse and some kind of extreme pain and maybe you've got a choice of types of contracts for instance we can have a 9 to. deflation or
a depression where all the debts it's way through to solve or we could have one more germany hyperinflation where we attempt to wave over the plate in the way you know those are 2 separate kinds of crazy things and we might still have a choice between those 2 but it's only goes to we don't we don't have a choice somehow getting back to normal organic sustainable growth from here without a huge amount. so yeah we could see extreme volatility we could see that but you have to work it's going through the roof here but it won't be healthy bull markets and stocks or bonds or whatever it will be on the side of a stream papyrology and a prelude to some kind of systemic collapse well one market that's telegraphing the flesh and. it's telling us latin claire that a debt global debt deflation is upon us and that is the us dollar and the us dollar is rallying so john of a now your web site is dollar collapse dot com the dollar has resisted all
downward movement it's high and looks like it could go higher the dollar is saying massive deflation is the dollar the only safe haven out there and i say this in the context of gold because gold it's making no off time highs against every major currency in the world but not so the. dollar one what do you look when you look at here now when you have a dollar has it held up a lot better than it seems like it should have based on just the numbers but in part that's because the real world of the need is an even bigger mess than the u.s. it's so you know relatively good as a place to hide out but not objective because you know the numbers that underlie the dollar or so around this and all the big the up currencies are having the same weight as a very great. as for gold yeah you know so far the dollar has been a better safe haven the gold too as it has a limited time frame because. gold can't be inflated away by rogue central
banks but the dollar can be along with all the other currencies because remember it's not good for us to have an extremely strong dollar in this kind of world because that as you said is deflationary perhaps. and over leveraged economy you know how to play ssion because that means the real cost of your gas is going up as the value 'd of the currency that you got used to pay back your desk goes up. and that is a recipe for mass spec of seeing your ass so you know you've got trouble right now saying. why does everybody else have lower interest rates than us you know why are their currencies weaker than ours hee hee. you know a very simplistic way yes the problem but his solution of course is too aggressive we are going to get us back to the ranks. you know at the back. actually will have to do john a band going to get off their ass thanks for being on the kaiser report. john
roberto has been our guest characterize report he's a dollar collapse dot com my name is max kaiser i was stacy herbert thanks for watching if you want to catch us on twitter it's guys report and select time by all . so what we've got to do is identify the threats that we have it's crazy. let it be an arms race. and spearing dramatic to follow the only i'm going to i don't see how that strategy will be successful very critical. to sit down and talk.
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u.s. markets breathe a brief sigh of relief as the white house unveils fresh measures to protect the economy from the effects of the coronavirus. france declares war on covert 19 even deploying the military into the streets of paris and that as the e.u. increases efforts to contain the pen to make and member states to shut their borders. the borders of the entrance of the european union and the shamans will be close we all full stops like connections to these countries and establish controls at the swiss border without a valid grizzle traveling in and out of the country will no longer be allowed. plus australian special forces are slammed after a graphic video emerges.