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tv   Keiser Report  RT  December 1, 2020 11:00pm-11:31pm EST

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that advice easy going to dig yourself. an investigative news website claims to have been blacklisted by british intelligence after exposing government surveillance practices declassified u.k. says it's being targeted by g c h q. lawmaker resigned his seat in the european parliament after being caught at a party in brussels the media are describing as a mostly male orgy. diplomats were among the guests. and iran. over the murder of its top nuclear scientist to hunt down criminals and seek revenge. those are your headlines i will be back tomorrow with my colleague.
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time with a full and fresh look at the news this is our future now but at the. skies or this is the kaiser report don't forget to join our tell the group that's. a forward. pill. joining the telegram group right now stacey hey i'm going to show a little clip of a mean we were starring in we get play that i got to play the cat the cat dancer in the bongo. player yeah. that was really fun i liked it oh yeah i get to play the cool bongo player you know nato hey and
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a few more things to keep you informed of and that is that you know we do have a huge spanish speaking audience or so well and there is going to be a conference in which we are avatars speaking along with james la jimmy song a bunch of cool people andreas on to not bliss in virtual space but from argentina or somewhere a lot in america at le big comp dot com l. a b. i t c o n f dot com and you could register for free there and the all the tracks are in english and will be subtitled there dubbed into spanish as well so exciting lamone looking for the love being an avatar now yeah avatars are better because like you know my hair the situation with my hair 10 months until out down people commented on it a la in the comments on you tube and it's a big topic of discussion stacy's hair should have its own twitter feed.
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right speaking of twitter i saw this little dialogue happened between andrew neil and danny blanchflower and as a b.b.c. presenter i think he's now gone off on his own he's a journalist from the spectator and other you know right wing conservative sort of press in the u.k. and danny blanchflower was a member of the open market committee in the bank of england for many years so ok he's a bet he's a central banker down the blanchflower and an economist an academic at dartmouth and i really like him because he's always so open and honest. he doesn't try to be depleted us about what they do as central bankers he agrees with what we've said here on price report essentially so andrew neil had 1st tweeted dinner tonight with somebody who thinks he's a great market do room said it is mad that the dow passed $30000.00 and current circumstances i said no equity prices reflect future not past 2021 will be a great rebound i'm optimistic u.k.
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stocks especially under price so engine yell like everybody else what people are expected to do with the participants in an economy are expected to do through fed speak through the fed manipulating prices is that they're supposed to think that these are the animal spirits the fed tries to incur well dennie plash responded actually stocks are mostly being driven by global q.e. quantitative easing which really has one major purpose which is to raise asset prices yeah we've been talking about this for a while day by far is one of the central bankers who speaks openly and honestly about what's going on here so engineer who covers business a lot over there in the u.k. doesn't want to recognize that stock prices are a function of money printing in fact how much our stock price is a function of money for and according to recent analysis about 50 percent of the dow jones is attributable solely to money printing not from earnings which are in
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fact going down but from stock buybacks and other tricks accounting tricks so this idea that somehow there's going to be a glory days ahead based on economic growth is fallacious of best and flour calls it out the way it is that is for sure this is all the product of money printing i mean it's amazing like this is what we talk about this is part of the problem that has been going on since 2008 since the 4th turning since the arrival of the new generation into the more. place of jobs and the economy and they find out it's a burnt out wreck of cantillon effect and over priced assets right that all the young people the 20 year olds the 25 year olds having to enter the market with central bankers for the past 10 years especially 12 years especially have been pumping up asset prices well that locks out the young generation so we're like what good is that at the benefit of all the people who the boomers especially who became
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of age who came of age got their 1st jobs bought their 1st houses at the beginning of this cantillon effect at the beginning of this ponzi scheme since 1071 when the us went off the gold standard so why you're trying to keep that pumped up and set of life let it shift away from those who are elderly to those who are young and starting out right with the world break this down a little bit so if you are borrowing money from the bank to speculate in stocks they'll lend you as much as you want trillions in fact if you're trying to borrow money from the bank to start a business a family business for example though would build the klein your loan now what the economists will tell us is that they need to keep pumping money because they need to increase the flay ssion because for some reason there's not enough demand for credit out there what they don't tell you is that when people come to the bank to demand credit or borrow money to start a business or a restaurant a family restaurant or a family business the bank says no and why does the bank say no because they lend
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all the mot possible lending capacity they have to speculators who are expecting laving in stocks bonds and commodities in an almost no risk situation because if they get any kind of a loss of course the state then bails them out now what happens there is the case shaped recovery bankers continue to improve have seen this during lockdown trillions of dollars have been made and everybody who's not getting the free money is of course ha. probably suffering so and that's why we hear this all the time that they're trying to have the have an inflation target that they're trying to reach that is constructed by the fact that they do not lend to the folks that could actually increase the productivity of the economy they only lend to the speculators well right as dr michael hudson has told the show that's what after he was an academic learned how to be an economist and i was hired at i think it was
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citibank or chase smith chase bank in manhattan and he said he went there thinking he was being a banker and lending to business and what he was surprised to learn at the end of the year and he kept their balance of payments and their accounts and you say we just lent 2 mortgages like we're property speculation business and but that's what they they don't teach you that and in business school but speaking of speculation this is a remarkable story because one thing we've we've we've been covering here on kaiser for years is that mad speculation and financialization of the oil market in the united states whereby we pump oil and natural gas through fracking and it has lost money no matter how high or high the price of natural gas no matter how price high the price of oil it was always losing money but interest rates kept on declining more and more free money was being pumped into the economy pension funds were having to chase yield wherever it was and that was in these bonds in the fracking
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sector well the saudi arabia bizarrely has the largest oil fields in the world kawar it's been pumping for like 50 years and you know over the last few say the last decade they've have they're having to pump more more water in there to get more more force more and more oil out but they have turned to financialization and got wrecked i mean this isn't saying the story saudi aramco is landmark i.p.o. is costing the kingdom billions the initial public offering of saudi aramco that was heralded. by crown prince mohammed bin salman m.b.'s as being a showcase floatation for raising massive new capital for the kingdom and anchoring a major expansion of its international equities markets presence has proven only to put around go into a debt spiral and highlighted a myriad of problems in saudi arabia to international investors now iran co is digging itself further into serious debt through bond issuance is simply to pay for the huge dividend payments promised by m.p.'s that were absolute you cryer to
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persuade anyone to buy into the on the toxic i.p.o. at this rate the debt taken on by aramco and other saudi bond offerings to pay for the dividends will be far more than the amount of money raised in the i.p.o. right now as you point out this financialization has its limits the accounting tricks of stock buybacks in money printing have their limits in saudi arabia we see a brilliant example of what happens when a country decides to go into financialization instead of what say diversifying into actual productive economic activities so with the oil price down as it has been saudi aramco decide to do no we don't want to accept the lower yields from our oil revenue instead we're going to take this whole thing public and parasols a dividend and that dividend will be better than the cheaply sourced revenues from our oil business because the oil business is not for inviting that same level of income and by the way they're already leveraged to begin with and they needed
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income to pay down that debt to begin with so they do the i.p.o. what they find is that the dividend is unsustainable saudi aramco so to keep that cash flow going they're going into the wholesale debt market so to solve the debt problem they went into an i.p.o. initial public offering which has resulted in intensifying the debt problem and this is the limits of financialization a similar to i.b.m. i.b.m. what back $130000000000.00 of its own stock and. companies now worth like 110000000000 right so they bought themselves to death they financed themselves to death so saudi arabia has financed itself into oblivion because they swallowed the financialization kool-aid to the point now where the entire country is at risk of going under because these princes that run the place never put a pencil to a spreadsheet and figured out that you cannot deck yourself into growth well in the
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fracking sector we have the red queen centrum whereby the oil wells deplete after a year or 2 here their oil field is still going 50 years later but we have the bonsall prince said drum where he can't add up he can't figure this out that he's they're losing money on every barrel now because of financialization and they're having to massively cut back cap ex and oil the oil sector is one of the hugest in terms of capital expenditure required to keep these things going so they're having to diversify you know get out of petrochemical business to cut back on their expenditure to pay these dividends which is more than their profits are making quarterly at the moment exactly right you know that's just that the accounting tricks that work for decades stopped working just like burning made off eventually as he said there is no innocent explanation when they was caught for his ponzi scheme the saudi arabian economy is an oil based politics game based on ponzi scheme underlying currency and an underlying global central bank led ponzi scheme
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he's definitely managed to turn it into that like using financialization. well speaking of bones don't go away we'll be back right after this. he's not. he had tom i can. that. will. give.
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me. one or you'll. need to. welcome back to the kaiser report imax keyser time now to continue our conversation with safety the most is the author of this instant classic debate quite standard read by billionaires around the world safety and welcome back thank you for having me max how does it how do you feel like when michael saylor over there michael
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started he says he read your book and then he bought 425000000 dollars of the big calling it did he call you up and send you over a fruit basket or something. as a set me food basket but you know i don't eat fruits anyway. i only accept gifts in the form of reply. i regard as a let us price solemnised over there he's the c.e.o. he's the 2nd or 3rd richest man in mexico he said oh i read safety book it's why 10 percent of my liquid per portfolio is now in bitcoin has he sent you let's say you know something from mexico not yet not yet he did only that he'd like to see if i go to mexico some keeping that in mind but. i'm obviously astounded to have. to have so many people read my book i've honestly did not think this would be the case when i was writing this book i meant i thought it would be something that would be popular in small circles of bitcoin twitter i did not envision wall street titans and billionaires. hitting me up on twitter and telling me hey that was
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a great book but here we are friends interesting because in the book came out academics in the intelligentsia around the world were quick to be critical of the book because it did not go down the orthodoxy that they were brought up on it was of course heterodoxy and i would judge that impact by a book of how it actually affects society and by that measure at this book is all frick and awesome you know world changing book all right so you got a new book out called the fear out standard the debt slavery alternative to human civilization i i would have i guess is a companion book you know that you go to. i gather you have a complete way to get your mom and dad bitcoin during thanksgiving if you are christmas if you've got a black belt in tae kwon i ology by professor safety analysts so let's talk about black rock the largest asset manager in the world they join j.p. morgan the biggest bank of the world they say that because it is displacing gold do
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you think this is true is gold 5000 year run over as peter schiff about to perform serve only all separate coup in the middle of his trading floor does because market cap still ahead trillions as the delta he says safe did it looks like i mean this is the kind of crazy talk that only people like you and me were repeating on twitter a few years ago now all kinds of other less crazy people are repeating it it seems i think i think the the case for becoming to continue to grow is very compelling today because in as near its all time high as almost of its all time high and the fact that it had such a massive crash and recovered i think is is enormous and having done it 3 times it's going to start attracting real attention i think the silly position of the academics you mentioned. to just dismiss it out of hand is i think the perfect complement to just how completely utterly insignificant the vast majority
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of academics are today all of these people are just writing in for each other and with absolutely no relation to how the world is looking in the real world i think yeah you know gold is probably the new silver and if you know what i think about silver i think silver is silver has been would be monetized 450 years now it's been crashing against gold for a 150 years and there's no way back from that because. silver is main advantage was that it was used as a secondary scaling solution for gold at smaller levels but then with the gold standard and then with the fiasco. all of that there was no use for it so now there are a few people actually use silver as money and those who do witness the value of their silver generally lose value over time and i think when we might be seeing something similar with gold because bitcoin has a higher stock flow than gold and gold is becoming the new silver it's a higher stock to
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a lower stock of low now and i think you know the way things are going a bit continues to appreciate then gold effectively becomes cheaper in real terms which makes it more economical to use it in industrial uses and i know a lot of the gold bugs like to say well you know we can make cufflinks out of our gold as peter schiff says or whatever and they think that that's a good thing but that is not a good thing you don't want your money to have industrial uses in the ideal money has 0 industrial uses and is a purely monetary good because the more industrial uses you have the less of a market the less of a monitoring medium you are actually using and the more industrial uses you have the less the lower the stuff to flow racial because because a lot of that stuff starts getting used up in jewelry and in industry and effectively it's like you've put it underground again it's no longer part of the stock because you know if you want to get gold out of electronics you know the cost of mining that is probably higher than the price of the cost of mining it out of
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the ground so the more gold goes into industry the lower the gold's stock to flow racial becomes and therefore it becomes more and more of an industrial metal and you know when i when i wrote the big points down i was much less. confident in this happening but i think the last 23 years you know we see it can continue to rise and gold continue to just essentially languish in this you know in this price range between 13 and 18 or 19 under whatever. and this continues for another 567 years. the gold will overtake bitcoin i think let me ask you this answer professor and whatnot mises regression there i'm in it and seems to think that you know you have to go backwards in time to a point where 'd there was utility value and gold had utility value and that's important but it seems like it's that goes against mangas thought about having
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purely subjective value and to your point because because it doesn't really have any you tell an evaluation other the fact that it's a perfect store about you it's much more in keeping with the austrian school as originally envisioned by the founder of the austrian school yes or no i don't entirely because i think it goes along with both i think people misinterpret amazes theorem as. as saying that this is how i think the important thing to keep in mind is that with mrs there was throwing she was showing how the market could produce a money without government having to mandate and that was really the key point and so. that's that's really the important point within that context and so you could say that today you know bitcoin doesn't need to start off to bootstrap itself through the phase of going through being a market commodity 1st in order to become money because we already have a money and so we can price bitcoin in money but i think even you know you do you
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don't have to go this far i think there's a bit less a fear of still holds because bitcoin was not used as a medium of exchange in its 1st transaction in the 1st one's actions because people were accumulating bitcoin and holding it and exchanging it for its own sake not as a medium of exchange so people were expanding processing power in order to buy bitcoin and then they kept their private keys on their computers so they went through the cost of homesteading bitcoin effectively in order to hold it so that's a market that's a good if you. but you know if you if it's actively can think about it as digital homesteading you you go to an empty land and you put a fence around it and you build your home and that becomes your land because if nobody had claimed it and now you've claimed and now it's become a scarce economic good that you own the same thing happened with bitcoin before because it was used as money so then after about a year and
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a half of people trading bitcoin back and forth between january and may 28th 2009 in may 2010 may 2010 is when we 1st had somebody use bitcoin as a medium of exchange where somebody paid for those pizzas so before that bitcoin was a market good people were buying bitcoin directly from one another people were mining bitcoin and keeping it with one another only after that did they use it as a medium of exchange so i don't see how it contradicts mieses there him and also doesn't contradict that because even though because it has no industrial uses in the outside world because it does have one. non-monetary use which is you need bitcoin to pay the transaction fees of the bitcoin network. and that's the only that's the only unsensible network in the world so you know if it's does the suez canal have values the only place where you can go from europe to asia without having to go around africa it's a scarce resource and if you want to go through it it's valuable people pay for
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that but what about this is being unimpeachable the fact that big point separates money from the state and that would seem to be in the history of money the 1st time we've really had that and i mean you could say gold is not necessarily bad gold 'd there are less a centralized by the state your thoughts you know to be fair like. the gold under a gold coin standard before a gold. standard than the one when when people just using the physical coins i was pretty decentralized i think they the more decentralized the more you go back in history the more decentralized it was anybody could make their own coins and maybe the best example might be the islamic dinar of a decentralized currency because it was popular it's still being used as been news there all over the world for around 1400 years now and it's still a unit in which people actually conduct transactions if you want to get married are you pay your dowry in gold coins and a lot of transactions are being done in that islamic do not which is
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a specific weight of gold that anybody can issue anywhere in any way you can verify anywhere on the sea is not as easy to verify as it is with gold as it is with bitcoin but it was effectively decentralized yes islamic states where in charge of it and they minted in they put sometimes they put the name of the caliph on it but anybody could mint a coin like that and anybody could use it and it has been in use for 1400 years all over the world so it's not entirely the bitcoin separates the money from the state money is existed before the state but it separates this current iteration of money from the state because the state was able to take it over because of its ability to control. clearance a settlement the central banks ok speaking of states and world organizations and other world economic forum wants a great reset. is beginning it they're going to get a bitcoin that's what the coin does because it is the great reset they just don't know it yet what do they think they're going to get i don't know they want to give
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people a whole bunch of soil burgers and windmills and. you know test and trace and endless drugs and vaccinations and lockdowns and i'm not quite sure what they're trying to get at it's a whole bunch of stupid. pseudo scientific ideas that are popular with people who have far more money than sense somehow apparently you know using all these incredibly unreliable and extremely expensive sources of energy like solar and wind is somehow going to replace modern civilization which is reliant on hydrocarbons good luck with that i'd like to see somebody from the people who wants to impose this greatly said go one year just one year without using any products from hydrocarbons and then once they've completed and survived that year and they can manage to get online without using hydrocarbons they can send me an e-mail and tell me here i did it and then i will you know i will gladly admit i'm mistaken about
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this but until then these people are just so i'm just delusional we can't get rid of all of those things but a big point standard image of twitter where i've never read books anymore is actually i book i read cover to cover so i would imagine that the fear of standard sequel by safety analyst is equally compelling now how can i get my hands on it i'm surprised i don't have an advance copy right now that was a glaring over oversight on the staff's part but how can i get a copy how can everyone get a copy what's going on well if yes that is not finished yet i'm finalizing it as we speak but you can subscribe on my website say 15 dot com and you will be getting a chapter from it every 2 weeks and as i. analyze it and put it into print it'll be out in print. around the middle of the 2021 until then i'm looking to be sending it out in email so go to my website if you do not subscribe and you'll get this book and you will also get my other book which i've been working on for the last 2 years
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principles of economics a textbook in economics and you would also get access to my 4 online courses in australia can all mix as well all of that on safety dot com for $15.00 a month or $100.00 a year that's a fricken bargain i can tell you that right now anyway saved a thanks so much for being on cass report as always thank you so much for having me max always a pleasure well that's going to do it for this edition of kaiser report with me max kaiser and stacey i would like to thank our guests safe data most writers books because they stagger in the field standard and i stand by all. at this point no one knows when the cold crisis will invade however it is
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undeniable that this whole crisis has negatively impacted the economy what does it mean to return to normal is that even. it will the divide separating the rich from the 4 continue to will be. always be polite never engage with a negative a good or confrontational also. don't get into any conversation or start answering questions just ask for an attorney. to survive in terror a geisha. a. definitely don't want to be. in the jumpsuit one cup. you're more likely to walk free if you're rich a guilty or if you're poor and so. you've got 2 eyes 2 ears and one mouth. so you should be seen in here and a whole lot more than you're saying if you don't take that advice easy going to dig
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yourself the whole. purpose. this is the one business show you can't afford to mess up their montecito been washington coming up to me much to theodore stream to german russian pipeline plans to restart construction later this week and nearly 100 percent of funding has already been provided and cyber monday hit record sales of $10800000000.00 we'll tell you what the forecast is for the overall holiday season but a retailing and into my science professor have a lot to get started. after a year is delayed germany said construction of its nord stream to pipeline will resume this week a german agency and the candidate may have found
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a way to skirt u.s. saying so.


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