Over National Security concerns. A colleague brings you another news update next hour dont go anywhere there is kaiser report but if youre away stay with us. Max kaiser this is the kaiser a party of all or that expression if you find yourself in a hole stop digging sounds logical right. For one particular industry. Well thing indeed in fact there are 2 industries and weve talked about them often thats the Tech Industry we have the tech bubble 2. 00 with we were left peloton all of those sort of companies and we have the fracking one and thats important for this 1st headline for wall street dot com because he looks at all these bubbles going on what he says is heres what im worried about with the everything bubble how cash burn machines power the real economy and what happens to the economy when investors refuse to have more of their cash burned so he calls it the cash burn machines these are investors willing to just keep throwing money into ever losing operations we work. Of course theyve been losing money for 10 years or less in the case of we work but they keep on throwing money and theyre willing because theres always somebody to flip to they all share 2. 00 things in common one theyre fabulously efficient finely tuned and endlessly perfected cash burn machines and to investors and these companies count on new cash from new investors to bail out and removing the rate the existing investors otherwise known as a ponzi scheme or a pyramid scheme this is essentially was driving the economy is burning cash yeah its a beautiful thing because it doesnt cost anything and you can get all the cash you want from the central bank for free they give it they give you trillions and trillions of dollars if youre a friend of theirs you get to burn a trillion and you keep a 1000000000 thats the deal so lets say Hillary ClintonsForeign Policy for example they government gives her a few trillion dollars she burns countries down but she gets a 1000000000. 00 in fees thats true of hedge funds as true of private equity funds they get trillions of dollars from the central bank they burn everything down their arsonists but they get to keep a nice a souvenir like a 1000000000 dollars like mitt romney is a good example of somebody who made a business out of this and. Eventually though your run out of the free money runs out in the case of venezuela for example this is a true fact they actually ran out of ink to print the money that they were burning. That was the end of that weve seen over the past 3040 years Interest Rates have been declining and declining and declining and to climbing so theyre always able to roll it over and sell it to another chump because theres always another chunk at the end of a declining Interest Rate curve so however what weve seen since the financial crisis since 2008 is not only our Interest Rates that climbing but the fed keeps giving their friends the free money and hoping that its going to trickle down well never trickles down because theyve kept everything private they kept all of those unicorns as tech uniforms which are on paper they were worth billions and billions and billions of dollars the ordinary told they thought like hey were getting free money from the fed so why should we let the ordinary chump get in on this because its free money for us and we can just keep throwing money at it and raising our own valuation on paper we get to then leverage ourselves up and buy real asses buy properties in new york city by land by gold by bitcoin. But now as we hit 0 and even negative in some places its all falling apart because they arent able to find these willing investors or who are so easily able to throw money away so for example many of these Shale Oil Companies are privately owned including by private equity firms and its hard to get cash flow data out on them but for example just to get a feel for the magnitude of how much money theyre burning by sorting through 29. 00 publicly traded shell Oil Companies the institute for Energy Economics and Financial Analysis found that between 2010 through 2018181 1000000000 dollars in cash was burned plus is the cast burned by the privately Held Companies so the total. Casper is likely in the neighborhood of 700000000000 bucks right i know im our republic that they didnt go through the artifice of creating a Public Company or a private company they just burned the actual cash in the stove to keep warm here theyve created. A bull Business Model of fracking which is another euphemism for burning cash right because it takes more energy in they get out it takes more cash in than they get out it is a literally a Bottomless Pit of cash that is by definition impossible to make a profit from and in the private market like a we work or other Tech Companies that are in the private market theres a mass hallucination going on where theyve think that well we need to become the Biggest Energy exporter and producer in the world in the saudis are no good in americas Number One Energy in the company in the world so were going to take 567 trillion dollars are going to light it on fire up there in north dakota and claim that were the Number One Energy provider in the world the fed who is the one that is giving them this free money. Keeps on looking around at the real economy why arent we just rising why is the economy so weak we just gave our friends 10 trillion 14 trillion dollars since the financial crisis where is all this going they have to watch cars report and learn that literally of the guys are giving it to are just burning it because they just youre giving them too much theyre just trashing it they dont respect it its free money is not respected the beatings will continue until morale improves or in this case the money printing will continue until inflation improves now you never get inflation from money printing in this way you only get deflation weve been saying that for 10 years even though its against all economic orthodoxy this been taught in space the schools for decades they always say print money you get inflation we said actually in this environment you print money you get deflation and thats exactly whats now happening because in this environment the money printing is crowded out all of the viable businesses and kept the unbuyable or invalid bowl or crash companies afloat and becoming the Zombie Companies in the zombie banks and but of course theyre going to keep printing and told theres nothing left and we lose supremacy to china im free to say the money is still printed obviously its this being printed in the repo markets its being printed project these people remember used to be 1. 00 g. D. P. When you and i were young and entering the workforce 1. 00 of debt would create 1. 00 g. D. P. Or even 2. 00 their g. D. P. Now its about 7 dollars of debt creates one dollar g. D. P. That experts allowed on c. M. T. See their finger and point their finger at the millennium goals and call them socialists and what are these kids i dont know anything else like they see that her head like wait if its sticking 7. 00 in debt now to create 1. 00 g. D. P. Soon its going to be 14 and then its going to be 32. 00. And whos going to pay that debt me right like the 19 year old the 20 year old the 25 year old is going to be owing that but the only reason these companies have had such growth is because investors didnt care about the Business Model profits in positive cash flows all these investors cared about is the likelihood that the cash burning company would be able to raise new money from new investors such as by issuing new bonds or new shares so that it could pay off and remunerative the existing investors and existing stockholders counted on this new money to keep the company afloat and share prices sky high and i would extend this to the actual generational situation happening here in america is all these boomers and the generation x. After them they kept on spending and accumulating this debt because they thought well we dont need to have 2. 00 or g. D. P. Growth for every dollar debt because eventually we could just keep on rolling it over to another generation of chumps and that will pay us off that will allow this to continue but where add an end point with that in fact if you were to apply the same definition of g. D. P. Today as was used 30 years ago or 40 years ago it wouldnt be 7 or 8. 00 of debt. It would be closer to 80. 00 that needs to be associated with that so its the same as saying infinite right you dont get any growth. And you dont get any tax revenue at all because the people who are printing the money dont rely on taxes to get wealthy theyre not part of the real economy thats a thats the same thing as saying the rulers of saudi arabia rely on the wages of the People Living in saudi arabia to get rich they they dont they just print more or pump more oil so in the america the princes that run our economy just print more money they dont need the workers they dont need their taxes thats why they dont have wage growth why theres been that this aeration because theyre unneeded but were going to turn to a story that kind of ties these all together because the coal industry of course is going bankrupt because. Of the fracking industry providing natural gas an oversupply of it which is driving down the cost of setting up a Natural Gas Energy power facility rather than a coal facility but this story of course emanates from West Virginia kentucky and virginia all states that voted for trump and West Virginia in fact went for trump by 42 points the biggest in the history of West Virginia over hillary so m. S. M. We see has not covered this though this is a very much of a worker story that workers united in and got their way against a corporation that was using the the loopholes in u. S. Law to basically get you know. Short changed on their what they were do after months of protests and turmoil black jewel agrees to pay its Kentucky Coal miners black youll see the coal company that had declared bankruptcy earlier this year and left hundreds of kentucky miners on paid for weeks of work sparking a 2 month long protest and Harlan County has agreed to pay roughly 5100000. 00 to cover back wages of its kentucky virginia and West Virginia miners according to the settlement approved by the u. S. Just to court for Eastern District of kentucky this week theyre going to start sending the checks out over the next week but they the workers the coal miners had occupied like the rail tracks and prevented any of their coal from being sent out it was 23000000. 00 worth of coal because they felt it was due for them course thats kind of like what you see in france but also how it connects to fracking is remember with tracker is going out of business what theyre doing is theyre supposed to pay a bond theyre supposed to write a bond to the state like north dakota but the cleanup costs and it cost Something Like 2. 00 to 2. 00 and a half 1000000. 00 to clean up well theyre abandoning them and apparently theres not enough bond that they have left to even cover the cost of it so the taxpayer is paying it here at the same thing black jewels bankruptcy also raise questions about the Kentucky Department of labors enforcement of a performance bond that is required from new. Destruction of Mining Companies to cover wages the bond requires mining and Construction Companies that have been doing business in the state for less than 5 years to post a bond to cover wages if the companies go under and are unable to pay apparently there was no bond in the situation they didnt have any money to pay these workers when they went bust corporations are always going to abuse workers thats why there needs to be a war guys labor now people those who are free market boosters will say no no you just let the market decide everything. And im all for that but youd have to include if the central bank as long as a central bank is being manipulated by bankers and theres not a free market in money the price of money is fixed to encourage this type of aberrant behavior then there needs to be organized labor thats the thats the flywheel bus the counterbalance to the central bank is organized labor the irony is that organized labor is the last group to understand this they they should get their act together and tie their wages to the percentage of money supply printing but also in this case Martin Luther king jr whatever been able to warn the population of today what this is and tailing i. E. We are divided conveniently for i believe the elites into red team and blue team youre either in the partisan talking points of the republicans or the democrats so of course the entire Democratic Media is way bigger than you know theres just fox news in this c. N. N. And most n. B. C. And all the others they they nobody discuss this theyre not talking about this and that theyre unified in the same way theyre being theyre being exploited and robbed essentially by the same. The same guys rigging their Precious Metals markets are the same people involved in rigging this situation where workers these guys put in the hours they put in 2 weeks of work and they were never paid for it and then they had to do something about it because nobody else was willing to help them out there are you could be like a sack of family and look at this catastrophe and say hey this is a great place to sell synthetic opium. Right on do all right were taking a break when we come back much more coming your way. The good news if you like and use the term deep state you are no longer deemed a conspiracy theorist the bad news the deep state is very real and powerful and a danger to the democratic process the deep state as the 4th branch of government does it again counts. Time after time called parisian to repeat the same mantra sustainability. Turkcell are a transition to sustainable prize board sustainability span of a man not a more equitable and sustainable world. They claim their production is completely harmless. Has. It down to something Companies Want us to feel good about buying their products while the damage is being done far away and this is something this must be done to anyone and i need much sleep loses the moves and news to me didnt even an einstein theme that may be based on that understood superman in. Ok welcome back to the kaiser report imax keyser time now to return and continue with our conversation david margan of the morgan report welcome back to commence already well were so much the calmer lets try to just dive right into it following up on our conversation mr morgan about the dollar is ation of the world seems like people are getting rid of the dollar we see that the numbers in terms of dollars being used in global trade its all been falling for the last 20 years. Or all stuff to just stop pricing their contracts in dollars several years ago jim rickards said on this show that when obama weaponized the dollar be a swift it would cause nations to seek alternatives is this part of that move of course as i guess the biggest gas company in russia what do you think i agree that you know the brics have pretty much made a stance that they want to. Move the sofa and gold as much as possible should all kinds of big trade deals done between china and russia in their own currencies sort of the dollar all together right so dollars ation you see that is in place all happening i do on that score a few months ago congressman brad sherman pointed out that quote an awful lot of the International Power of america comes from the fact that the dollar is the standard you know enough International Finance and transactions clearing through the new york fed is critical for major Oil Transactions do you agree with that and what does it mean that Major Economies are moving away from clearing through the fed it means a lot i mean theres you who want to so theyve got a cursory study of the current Economic System those that we have the petro dollar everything the Oil Transactions at one time youd be cleared by u. S. Dollars so put a huge pressure to keep the dollar stable in the number one currency in the world this is of course been changed over the recent times as youve been chosen i just mentioned youre seeing settlement outside of the u. S. Dollar so well take the dollar down of the. Actually in my view along with so were other things i mean as we said earlier in the segment we could have. Inflation we could have a bit liquid depression and of course as an austrian im not supposed to so you could have both but you could have a situation where wages are frozen and you have prices runaway indices really harper inflation was just see that the use sensual energy and food doubled in price and their wages stayed the same if that were to occur what would that do the average american you know point so you could freeze wages and let prices go up and ive said in a previous show that if were going to allow the fed to manipulate prices you should allow organized labor because if you dont want to organize labor ok fine but they were the manipulators of the fed right so theres a flywheel theres a counterbalance there now you mention the petro dollar of course that goes back to saudi arabia saudi arabia seems like theyre a completely in flux 1st of all they are strong to sell around that big state oil company they are not able to sell it and it seems as though theyre desperate to sell it because theyve got a huge debt problem and thats not happening there got a lot of political shenanigans going on and theyre being revealed of all kinds of atrocities are being performed by an oversight and overseen by the leadership there and i know that you know politics is something not necessarily the what you look at when you look at these markets but. Arent we at kind of in historically speaking when you talk about date dollars ation are we also maybe at a point of decon lobel ization and instead of going with this globalized World Economy that weve been in for since world war 2 where its back to more of a mercantile list every country for south mentality absolutely i mean on the a rim coo comment there is you dont close the desert Barnett Simmons is joan rivers brings to the forum or perhaps you dont really have the reserves that these big claim and they are in big trouble for social reasons. Back to the other comment absolutely i mean i think trump is just kind of the tip of the spear or maybe near the tip of the spear is far as back to nationalization no more globalization every country and you see it throughout the world the Political Class that a lot of these countries are moving more toward you know me 1st or lets get our house in order 1st before we move into this globalization situation if at all and its very important to see the big shift i think thats probably the biggest shift that were seeing on the on the. In the world right so matt symonds twilight the desert and talking about peak oil and that was a theme 10 years ago we made a film about it shortly there after the whole fracking boom took off and you dont hear about peak oil oil anymore however 2 things number one fracking is net negative its cash flow negative its also energy negative takes more energy goes in that comes out takes more cash that goes in the comes out number one so thats a bust thats not true thats a canard so you get back to the peak oil thing and back to matt simmons book so the saudi oil reserves the field being the Worlds Largest sis the idea that that actually is close to depletion or the cost of getting on extracting is prohibitive that where are we on that scale of things was a new windows but if you read that i was sure you probably read the book put in the amount of water that they have to pump in the good this would film and then the water out to get back to oil as the minutes so i think were closer most people think that it couldnt agree more through a very eloquent what you said about for record im not a fish in a frog im going to fish im a friend of true capitalism which you can flood rarely but if you are producing the last and every barrel of oil or the good of the fracking system that why do you continue. To i dont really know the answer was that my cheap money right ok that cheap money is being enabled by repeated national all the laws of supply and demand side by side capitalism side economics its clumped ocracy driven by a poll d a p r o of Interest Rate setters that make the soviet union blush the old guys are rolling in their graves because theyre like it doesnt work i. Could break their loose were going to do that well youre trying to recreate the soviet union in america and wondering why its not working meanwhile russians are embracing america that i dont have to interrupt you because were the best exact heard was you know america is becoming russia and russia has become an american i thought houses. And i said that years ago its 2 ships passing in the night. Putin is like eisenhower essentially and thats the period maps and the u. S. Is rapidly falling into a soviet is asian so lets talk about gold miners theyve had a good year but a bad decade on the cheap here your thoughts on the Mining Sector ok now back to gold and gold mining yes 1st of all lets wake up because golds been in a deep slumber for years and years you know we were so all we were we were member the crash j. P. Morgan by Silver Campaign thats how old we are ok so gold miners what are your thoughts there david morgan nor think that they are still cheap or mean barrons does a gold index and i forget exactly what it was probably recent history last couple of years that was what has some of the year low so if you want to buy low sort of want to buy the miners in this space has it really was a ratio of also ratio got to like 19 or something and now its contracting somewhat. A silver is undervalued on any basis as a result of gold is it your you dyed your hair some or just a few more like a silver guru thats natural. There are so he thought of the conversation. How do i go how do i dig my way out of that now so the still goal so ratio is contracting. You know but as weve been pointing out i think this is the case against every other currency in the world gold making new all time highs right against the euro against the end against the repaying the ruble forget about its like. Argentina venezuela its magnitudes mag multiple times so whats it going to take to get it in dollar terms do we care really this over miners if costs come down through deflation and the currencies collapse that would be like a turbo charged case for the miners because their overhead costs are going to drop. And that their margins are going to skyrocket because the prices of call its over a going to go up i like that for a bull case is what he said a lot of good but we also come back to oil i mean its energy to get the stuff on the ground and if there is a contraction in the oil supply which i think could happen does this fracking thing is going to last a whole long im not talking about my lifetime but maybe you know 2 maybe you only 5 years its hard to forecast the point is youve got to factor that in as well but youre correct about something that could have a severe i think its going to go the other way because across more and more you know its energy and energy out as kind of how i think of things these days and how much energy does it take to get that out of silver not only out of the ground but to refine and put it in the dust with a grid and it takes quite a bit not just for those who miss and 1st our 1st conversation you gifted me this maybe wasnt gifted but it is now ive been commandeered this point so explain a story thats going to get and some people have a knowledge of the you know money used to mean money used to be in Precious Metals so what is this again whats a mortgage head dollar mortgage that dollars a dollars away to 371. 00 greens who have done the one fund sober that is really point 77 over troy out so you know roughly 3. Where is one else to go so at this price in mexico hes been trying for years to get mexico to go to a Silver Standard and he has an enormous really brilliant plan to do so how to create a subtly to currency system and to rollover into becoming a silverback currency over time through and as you point out its quarter in the way and then that is a way to establish a Accounting System in that economy that would benefit benefit wildly that mexicos a country seemingly i believe that would benefit from maybe a re architecting the Financial System in a way that they can start to cure some of these problems that theyre having is going to Silver Standard mexico a good idea as to the silliness price and were going to see him in a few months is this correct david morgan of the morgan report the 1st off good are fairly close and yes it would have a huge benefit i mean if anything was coiled silver timber in the main commodity thats in abundance is your wealth i mean by definition because these are real things needed in the real world and yet someone like rescue of the sometimes number one or 2 Silver Lining in the tarp plan it is not rewarded for that. Capital up locked up exactly they theyve got the number one or 2 Silver Lining in the world and theyre not benefiting from this in mexico exact this is outrageous david morgan in the morgan report. You know last time we are west we flew to athens during that and the greek financial crisis and we made a presentation to the government about solver right as they have similar and they foolishly took on the troika and they went that way and the economy went down the tubes go back to the pyramid i mean the bankers are really at the top of the pyramid and theyre not going to give up the monopoly to get something for nothing really meddling a lot of forces of the universe again. Working people find your work more good for dot com really is it then is. Hi federalizing or just morgan report the Mortgage Market report dot com thanks for making the house report back so its a pleasure thank you thats going to do it for this edition of the kaiser report with me Max Kaiser Stacy ever like to thank our guest david margan of the morgan report if you like to catch us on twitter its kaiser report and i signed by. You know world of big partisan. And conspiracy its time to wake up to dig deeper to hit the stories that Mainstream Media refuses to tell more than ever we need to be smarter we need to stop slamming the door on the back and shouting past each other its time for Critical Thinking its time to fight for the middle for the truth the time is now were watching closely watching the hawks. There are good terrorists and bad dead its the bad terrorists and those in yemen who the United States deems to be a threat the good. Lord in syria the cia and the u. S. Military were engaged in covert actions really throughout the world. Where they were assassinating populist leaders they were backing up right away military windows funding an army of death squads theres no any more because theres always a small. Really good. Profit. This is boot. Books broadcasted around the world and covering all aspects of our Global Economy in the 21st century on bridgeboro. Billing and washington heres a look at what we have on just for you today soft bank stock has slumped on its recent troubles with its we work investment and now the c. E. O. Has reportedly slammed the thinking project r. T. Correspondent and cautiously brings us the latest on the situation in los angeles and where the japanese may get investors goes from here with a flailing firm plus i could use a virtual