Hello america azure this is the kaiser report a man to a quick low dial 1800000 more on this station ok boomer you are a boomer and you sound like a boomer always loans loans loans debt debt well i want to start this episode with this theme of boomer which has gone viral of course and thats the millennium versus the boomers the millennial. Basically rising up ok theyre the biggest voting block on the in town and theyre searching asserting their power so 1st to put the context of whats going on in america this ok boomer thing i want to look at this chart and this is only from 79122010 and it shows the u. S. National debt and the u. S. Annual g. D. P. Says he see from when we started our National Debt in 17 9100. 00 all the way to just after a while where to we had almost no debt g. D. P. Stayed flat and now the least nominally our nominal g. D. P. Is going up rapidly but its almost entirely with debt and as we know from covering drone powell last week you know that is starting to we were having to create 3. 00 a day just for 1. 00 g. D. P. Said those are going to cross at one point but this is important to understand that this is the boomers and donald trump is the 1st of the boomers the 1st wave of them born in 1906 this is the world they know where everything goes up its always Getting Better everything does get better numbers wise even if its not just dell model they always say number go up lets look at another day 1776 you know in the beginning of what we now know as the United States of america during the children 40. Theyre proximate period of time Interest Rates have never been lower thats why you have so much debt because the cost of incurring debt is for most people on wall street is a row didnt cost anything and used to be going back even 20 years he used to have to pay 5. 00 or 6 percent in interest to take on a bunch of debt now to 0 in back in the in the u. K. Recently they had Interest Rates at a 300 year low price so theres no cost for that if you dont have to pay for it in the just get it for free you get a bunch of money delivered your office for free and you can go buy tiffanys with it or you can go buy a big productive utility with it thats guaranteed income or by Huge Corporation with it. Well there used to be a cost to debt which is why we did not incur any debt which is why we could not as a nation and thats why the g. D. P. Stay flat along with the flat levels of debt baby boomers were born in 1946 s. The 1st of them the debt started to rise g. D. P. Also started to rise nominally with that 1071. 00 of course when the 1st of them or what 2223. 00 we went off the Gold Standard because the cost of debt was real we had to send several tons of gold to 300000. 00 worth at the time to france when they showed up with their naval ship in the new york harbor so there was a cost to it then they got to unhinge it and they of course it was a magic trick right but the boomers have a mentality that they are somehow. In daoud with amazing ability and entrepreneurial and wonderful talent and Wealth Creation when we see the magic trick they were nothing special they were not unique the only thing unique about them is they had no alleged cost to their debt but now we have a new generation who wants a similar trick done for them entering the workforce and there is no trick you know weve were trying things like quantitative easing a negative Interest Rates we had never been tried in 5000 years and thats not doing the trick yet you know if im right and i think anyone Richard Nixon couldnt afford the war anymore because he had to pay in gold for the money he was borrowing so he cut us off from the Gold Standard then you entered a world of purely a selfie of money refers other feet of money its a bit regress right there all the yen the euro the dollar they all refer to each other and theyre all going deeper and deeper into debt so theres no basic there or there theres no stairs no way to measure the debt against something that is good because that are money remember j. P. Morgan said only gold is money Everything Else is credit or debt ok so without that there is no way to measure the debt and theres no at the moment you know my my view is that this is leading to neo feudalism or you have just a few private equity firms owning 98 percent of all the assets of everyone elses Living Service on that were getting back to the dark ages and in my view so were going to look at a few other stories to suggest yes there is the top 0 point one percent that you talk about but within that structure is allowed because the boomers got in 1st on this ponzi scheme we have a global free up ponzi scheme in the boomers were lucky enough to be right there when it started so were going to show you how they benefited most versus generation x. My generation which came after them and now millennial are doing even worse z. Forget them right fraction of us wealth owned by boomers and gen. Narration exercise when the average member of each was aged 35. 00 boomers and 1989 they owned 21 percent of us wealth generation x. In 2008 when they turned 358 percent so dropped by over 50 percent the average millennial turns 35 in 2023 right now they own just 3 percent so its dropping by 50 percent because the early members of that ponzi scheme have to be fed and theres less and less wealth to share with the bottom mill days when the top 110th of one percent took all the power and money they would put everyone else into ghettos or they would put them on to serfs or indentured servants or sharecropper successor here in the modern age of 21st century this is and this is engineering using Interest Rates so the millennial. The gen x. People they cannot borrow money at 0 percent they have to borrow money if you know on a credit card 151617 percent or they go to a payday loan which is an annualized rate of return in 2003000 percent right so they thats the thats the ghetto of the 21st century is your borrowing costs that are high so you live in a in a what i call Interest Rate apartheid we live in im bantustan of high Interest Rates and youre never ever going to get out of that because the policy is a is Interest Rate apartheid thats the policies that i know economics and how does that happen how does your Credit Rating happen how are you redid your social credit score essentially well its by how much debt you have compared to your income so the boomers they were born right after world war 2 we had no debt here our economy the g. I. Bill like finance everybodys Free Education all everybody was educated the suburbs were built like you know these are. Basically government plans helping to build and facilitate these structures then now the generation x. Y. They dont have a home by. 35 years old its because they have all that student debt so they have a lower Credit Rating just theyre born subprime theyre born with that so therefore their rating their Credit Rating is lower meaning their Interest Rate is higher than what a boomer can because a boomer got in 1st on this pyramid scheme of a economy and they have more equity than anybody below them so its just is this natural anybody in 1st in a pyramid scheme has more equity theyre getting a bigger income stream from those coming in the response from the left. Is to go after the billionaires and say we need to raise our taxes. And the billionaires because they have all the power will resist and i can see that happen but what they should do you know give them the recipe now to increase their power is that they need to get a seat at the Federal Reserve bank they need to get majority on the fed and they need to raise rates. To restore equilibrium thats how they will get a piece of the pie when when donald trump says the fed needs to lower rates or go negative that should be the tip off thats the vulnerability thats his weak spot to put it in terms that the millennial understand pretend this is star wars and the death star has a weak spot and luke has to fly in and hit that exactly exposed to blow up the death star ok so the weak spot for the death star that is the Federal Reserve control Global Economy is Interest Rates if you can control seats on the Federal Reserve board or the federal open Market Committee and get rates to go up then trump collapses the republicans collapse the concentration of wealth collapses the wealth and income gap is restored to normality and you have agency once again of this economy that is the only if thats the only spot you could try to hit there and hit their hit there and you can look great doing it but that is going to be ineffectual well heres another way and the wall street journal in fact is suggesting thats because im curious because you know the top one percent own all the stock market that helps their wealth on paper look enormous the average boomer why theyre ahead of the in that discrepancy in the wealth its almost entirely down to 0 house prices they were 1st in on this house price to member when they were 1st entering the market they had to put 20 percent down now its down to one percent or 2 percent that you have to put down in order to leverage up and keep those high prices on homes so that the ordinary boomer feels wealthy well the wall street journal points out boomers are about. Its a flood the market with homes will anyone want to buy them the headline of their actual article reads ok boomer who is going to buy your 21000000 homes baby boomers are getting ready to sell one quarter of americas homes over the next 2 decades the problem is many of these properties are in places that millennial dont want to live so you know this is power youre theyre forced sellers youre the unwilling buyer just dont buy dont buy from them and there that that ponzi scheme collapses this is the thing about pyramid schemes about ponzi schemes lets call it a pyramid scheme in this case its just own was accidental it became accidental d and now its intentional to try to keep it afloat well they have a career on wall street my minute response would be to acquire all these Distressed Properties by the millions and package them as an offering that would get congress to pass a law that would enable this to be sold off as a tax write off right so youre converting losses in a tax write offs and youre going to give the top 110th of one percent a way to shelter income remember during the Resolution Trust corporation when the s. And l. Market blew up the wall street got congress to package all the bad banks and sell them to people like ron perlman and carl icahn and others as tax write offs and they didnt pay taxes for 2030 years and they made another few 1000000000. 00 so im not i mean ok im not sure im merely i figured out a way to make money on that the way that would kill it is if Interest Rates were higher and you could you raise my cost of borrowing now suddenly my net worth has to be marked down because its all based on mine its all based on having access to capital at 0 cost thats the problem is house prices and bubbles can only sustain itself if people can keep on rolling over the debt weve been rolling over the debt since night you know Interest Rates have been a lower and lower and lower. Since the boomers were 35 right you know since then Interest Rates have been going down now we get them retiring from this pyramid scheme and Interest Rates are already near 0 so the problem is how how can we get the pyramid to continue for that of the 20 years where they dont these 21000000 homes pay less in wages and open up with a global no baby market able to expand the debt in order to keep their prices that they have in their head for their of times you can expand the debt well ok lets see that you know i think well as an up it never extended this like 23 well thats because youre a boomer audience know how i do is guess a ok boomer thats what you relied on for your entire life i dont give you the recipe to fight back millennia old jonesey you know but youre not going to do it because you want to be like i want to take a break when we come back lots more coming your way. The Economic System known as competent as in has generated more wealth than any other system in history in many ways it is defined maternity itself hundreds of millions have been lifted out of poverty however competent lism has also witnessed growing income inequality the appeal of socialism currently on the rise can count pollution. In this community there are people who believe that its ok to sell fracking who dont like its really hard there are no jobs and you see that ive got kids and ask and as a parent. I can come up with lots of arguments theres a lot of conflict in the game between the 2 most of the conflicts i would say revolves around money and most of them money has made. Us want to know each other does he know each other is good because the state of california alone makes 6000000000. 00 a year of prison complexes you get some point in your life where. You dont care anymore no i care about your so you dont care mind anything. Welcome back to the kaiser report im max keiser time matter return to our conversation with ross ask rafis the director of the 4 horsemen 2012 hes also got his own show out there renegade i think and a its a must must must must see viewing if youre interested in this show your love that show ross welcome back to max good to see ross are heading into 2020 or living 2019 ers ending with us stock markets at all time highs for Political Office rising across the world are these 2 connected what what are some of your thoughts heading into 2020 everythings fine max by making those Investment Decisions its never been better because thats exactly the my room when you dont you dont go like everybody else mad and buy into this mania youre sort of if youre shoeshine boy moment when you know the shoeshine boy so its your bow which silky well whether hes got whether hes longer or no so i think that were in the most precarious position and i think this euphoria is a mosque and i think people should be very very careful over 2020 because so many are saying its going to be the year of reckoning they hear of reckoning although i sounds a dramatic so lets break it down they have a specific points that we should be looking ahead for 2020 some predictions some some insights are off i think the 1st thing to say is that 20202020 will be the year is looked back on when people realise the Mainstream Media at last has lost all its trust specifically goes ations at the b. B. C. They were recently call and seeing footage to sort of crush the people that they think they should be presenting and it will cause its way. The public on cheap and social media. Bloke is out there who are really watching really catholic and not being manipulated by these big media but he will say any more all right so tight area were going to say man same in finally get its come up and even though they have worked doggedly platform so many independent media splash sources out there were seeing a lot of big names get the platform no longer in the media landscape but the same thats going to save Mainstream Media because their fascist collusion with their own racketeers on wall street and the kleptocrats of a Political Center as it is is on on tenable by the small ideal and this generation is e who have come up with this new me new catchphrase call of note paper where ok i sell a book or story video at our being slandered by the by these youngsters look at whats d happened look at the intergenerational story thats going on so you and if you think about it the b. B. C. The average age of the b. B. C. Wont here is about 58 average age of b. B. C. 20 in the u. K. 66 the Mainstream Media got a massive problems and the new independent media shows like yours really aiding and others telling our reason the viewing figures are all going in the right direction is because were actually reflecting what d people are feeling in their lives were not telling people which is what the m. S. M. The Mainstream Media do all the time theyre very didactic they tell you how to think what you should be thinking we should be looking out what you shouldnt and that when you go screens now in the world people will go and seek out the veracity of each story and make their own mind up and i can only be a good thing for democracy and society as a whole so i think keep Mainstream Media with us or to segues into Something Else and it segues into the sort of prolonged to kind of occasion of the west so thats another prediction i just think that the stagnation. Its just going to continue and grind on and all in all i think it was shiller one of the german royces said you know man can survive anything but a succession of days and thats basically what were going to see over the next couple of decades because as you can see now this ongoing stimulus that doesnt have an effect on the real economy is laboring under massive amounts of private debt some a 2nd prediction is only going to confiscation. Across the develop worst yeah what about the bond vigilantes remember them they is still to sell the bond market off when the inflationary pressures are starting to rear their ugly head and inflation has been outlawed a thank effectively because the Central Banks have an infinite budget to buy all the bonds that they need to for eternity to keep Interest Rates low to to kill the bond vigilantes to make it a shangrila a la de da economic environment where wages that are go up at stock prices never go down and i dont see any reason why that cant continue in 2020 because the Balance Sheets of the Central Banks theyre there at roughly havent seen the numbers in the last few weeks for lets call 50 trillion dollars they could easily go to 200. 00 trillion dollars ross why why why not what is this logically and every central bank basically owns everything right and only jump in 1st 2nd ross because in my view thats exactly the end game its called taking the World Private wall street with the help of 0 percent Interest Rates are taking all these companies private all these big deals all these big mergers you know i see feel the packers are going to be hostile rated by xerox tiffany being bought by l. V. And european luxury goods its all going private ross thats where it ends and the dow 07000 so what does it really be out sooner and through everybody in the Federal Reserve and runs the world from the feudal feudalism male. Feudalism do you think that the public having been smashed to pieces decades certainly austerity in this country do you think the public are going to say yes because the public has been proven time and time again to be easily pandava with key programming and and cheap calories with cheap food and they have no a but ok then me to seem to sell 2 the the public is is stupid but i do see some bright spots with like elon musk and jack dorsey combining forces to come up with new technology a new emphasis on dig dig lobel ization the dollar is asia and theyre trying to rework recreate the world by making everyone individually sovereign and using technology and solar panels and things like that but if that doesnt take off i just see a return to the dark ages and saw him there anything after everything from the enlightenment Going Forward would be just a bad dream were back to feudalism and and serfs and kings i mean the public what defense is a public have what how are they going to fight that the 1st things 1st the longest the still those windows are on the truck right so hes busy and jack dorsey says so all that shiny new shiny bunning out on threats or so the 1st 2 things that need addressing this are far as certain equality its really interesting whats happening in the u. K. When you talk about serialism because n n if you heard about it theres a guy called prince andrew. And thats not a prediction thats when he 20 i think hes going to start sweating again and if you when you when when system starts you can look hard you know people make really big errors hes made one recently and really its made what is ordinarily a very very proud and promilitary country really question the structures that we live under and i dont see this Economic Conditions disappearing get worse i dont see that questioning or not dissent. Going away however much the Mainstream Media china russia so im probably a little more hopeful and i think that you need this level of Creative Destruction and economic crumbling if you like before the green shoots can come through but i do hate you about the monopoly effect that the central bankers have you know sonny with the money supply and also the terrible terrible political decisions that we are all enjoying at the moment but i dont think the public will take it from what about global that table a you know thats a thats a big yeah interesting set of what is what are your thoughts on that i mean weve just been interviewing andrew ross and he wrote credits oprahs now the embers of occupy are still burning theyre still glowing and when you realize that senate many so many students in america are so indebted that actually they cant answer in syria the norms of the economy norms of society you realize that youre going to have to strike all that debt so for a global debt jubilate yes we need to get rid of all the private debt but when its a start and Bernie Sanders is very good own nest writes a star is a student debt jubilant because if you want your future and if you dont want your kind of the cation of america which youre getting at the moment and you know what that leads to intergenerational mortgages which is more debt more private debt bigger juiced asset prices im all going to says for people like jamie dimon if you dont want not what are you going to have to do is get rid of all that debt and i tellee the way to do it is firstly cancel it and secondly if youre going to use it corporates are going to be using students that are coming out of those universities increase all the taxes on those guys and use that saks dollar to pay for students yeah and the sex they statuses to burn their draft cards whitewash instead in some a 21st century burning their student debt obligations and his the key point. On this right you cant do it as a student watching it individually you have to organize 1000000 students every year. And its their fault im counting on make those payments theres a huge amount but no one really knows about it because because people are going to be ashamed of that it will it talk about their financial woes so what they have to do is everyone has to organize and collectively you know get that debt structure all right well start i mean during the vietnam war protestations if you saw your friends coming back in body bags it was easier to get a softball when going by here and its like a victimless crime because you dont really see the carnage were told its a victimless crime and theres always going to be some students that are going to be like well im going to play the game theory hair and i mean hey i want not to burn my dad and im going to job a j. P. Morgan and im going to be running a Company One Day right so yes how do you get folks to act in their own selfinterest as a Group Trustee explain to them that there isnt this isnt victimless. Theres the down side to all of this is also really a societys ruin but on the way all the Mental Health issues that go with it there are people there are serious a great surge going through the roof there is a total shunning of entering into society because students have so so disenfranchised the bliss rates going down all is indicates is Socio Economic indicators going the wrong direction so this isnt great symbolists this is very well organized and we know who the organizers are so what you do is you say you explain that to people and maybe some outliers want to go off to j. P. Morgan and you know straight to their life away looking at spreadsheets but others who wants or value start businesses create the entrepreneurial class. Really what in the real economy do all those things that give meaning of lucas explain to them that actually they have a lower level of geisha not simply to step right in general obligation not to pay the debt ross astro thanks for being on the kaiser report pleasure good to city all right thats going to do it for this of a sort of the kaiser report with me max Kaiser States or would like to thank our guests Ross Ashcroft other renegade hank and the filmmaker behind the global smash hit the 4 horsemen in that film by the way probably the best part anyway if you want to reach us on twitter its kaiser report until next time by all. The European Unions tendency to believe that is and only represents europe has long been a major gripe for russia but as the e. U. Experiences significant internal difficulties it is starting to reassess what it is and what it stands for what does that process mean for the countries sharing the continent with. The be. Los angeles the city of into. A short drive down hill from the hollywood dream they South Central one of the most notorious addresses on the planet. Like its famous neighbor South Central has made its place in the imagination and then. Beyond the fictional reality of his residence wives are seldom touches the t. V. Screens in movie theaters of the wire or. Non