A bit of all the dotcom boom and the crypto boom of the big boom in the stock market boom so this is been a remarkable period for the wasnt called generation jones the last of the baby boomers born in 1960 s. I was thanks to paul volcker who in 1980 you know started to you know stuff about inflation with a huge surge in Interest Rates and its been basically easy street ever since easy money has resulted in many things and were going to go over that in a moment you and i witnessed some of it in detroit where we were last week where you could see former greatness former beautiful buildings abandoned industry abandoned creation of wealth abandoned because you know you and i can remember a childhood. Any you know any person entering the market since then well thank god it must been horrible back then right but our parents had amazing jobs they got paid well we they were able to own a home and buy a home with one income that they were you know more community. Morse university didnt cost your life you know so here weve had this rolling over of debt over and over all the way down as we talked in the last episode theres been an ever declining utility of debt part of this has been that we need more and more debt in order to grow this fake economy this economy because remember if you look around theres not much industry left here so what if weve been building more piles of debt and im going to turn to some of these headlines for the past week that ive observed to show that you know most people on bloomberg and c. And b. C. Will tell you we want lower Interest Rates this is great for the ordinary american right most americans live paycheck to paycheck no matter how much you earn getting by is still a struggle for most people these days 78 percent of full time workers said they live paycheck to paycheck from 75 percent last year according to a recent report from Career Builder overall 71 percent of all u. S. Workers said they are now in debt up from 68 percent a year ago so you see debt piles are climbing. Of course this is what the fed wants with the lowering rates they want the ordinary american to cripple themselves with debt to make themselves have fewer choices in life because youve got to get that paycheck to meet the minimum payment on your Credit Card Debt right so 40 years ago the transition from industrialization to financialization so people had jobs and the economy reflected a workforce that would earn discretionary capital that they would spend on consumer goods that were made in america then you want to financialization all the jobs one overseas is outside of the states and the only real money that could be made is. On Interest Rates spread Interest Rate arbitrage financialization wall street to zation commodification and so it gave rise to a group of ruling class that had access to the cheaper money so those with the access to the cheapest money became the richest and then if you didnt have access to cheap money loser 0 percent borrowing costs you would end up in the bantustan of a ghetto somewhere thats the Interest Rate apartheid thats been going on for 40 years you mentioned detroit interestingly enough fascinating weve just in detroit and were also just in San Francisco you know heres the tale of 2 cities detroit pick this up by the bootstraps spend money on itself rebuilt downtown and San Francisco the people who made all the money in San Francisco decided not to do anything for their hometown so theyre sloshing around in human feces and needles all day by choice dont think that the people in San Francisco that are not Walking Around in poop by any other factor but their own choice going back to this chart weve had 40 years of declining yields rising bond prices so this has been a bond bubble bonds are at 4000 year highs actually so we have an extraordinary situation which most people think is normal but its outside 4000 years of normalcy of normal rates and normal history so you during this period were also a magician in times square so you know how to create illusions and distract and divert your audience and order to conduct this wealth transfer in this case thats the magic trick that theyre theyve conducted during this period of time so back then i remember when my mom bought a house you put 20 percent down you didnt have to put 2 percent down as you have to do now and thats created the illusion that. Ok so now i work in telemarketing rather than building cars lay and manufacturing wealth like i used to but im able to afford this house well while Household Income has grown over the past decade it has failed to keep up with the increased cost of living over the same period so you know everything is online all the algorithms run all of your data so do you think that youre ever going to get more than 100 dollars a month to put away because the algorithm knows the universities know that they could take another. 50. 00 out of there as soon as you earn 150. 00 extra they just take you 50 the Health Care Industry the insurance industry. They have all your data and they know how much they can take from you and its precisely measured soon as you walk into a casino they know how much they can take from you right thats the American Economy today the financialization its become the casino gulag and all the data is in the hands of the pirates who take nickel and dime folks to death like jamie diamond became a billionaire nickel and dime ing people but even worse and more pernicious would be like a wells fargo got frustrated at just outright stealing money and the gaming people in the casino good luck and just resorted to from peoples accounts of millions of people just their money ripped out of their accounts from wells fargo and Warren Buffett the biggest shareholder laughing yeah but as you know you used to work at banks and you say all the time that your Compliance Officer says just do it because well just pay a 5 later down the road but in this this quarter our options you know that we get paid well make huge money individually so the bank the shareholders will pay a fine if. The Compliance Officer is the best because all they do is sign their names through fraud all day in the they get these huge bonuses christmas every year from soakers and bankers again like they grow them knows how to take every single individual bit of you then you have the propaganda arm on c. And b. C. Bloomberg and m s n b c and for example like what do you think about obamacare well they basically confuse Medicaid Expansion of medicaid which is government run Health Insurance for poor people so theyll theyll confuse the fact that obamacare expanded that. And with what obamacare actually is for the ordinary american so anybody making over 4050000. 00 a year so even those making over 6 figures according to this data so they struggle to make ends meet the report said. Nearly one in 10 of those making 100000. 00 or more so they usually are always live paycheck to paycheck and 59 percent of those in that salary range said they were in the red so again like youre making 100000 say 30 percent goes to the federal government for taxes so that 70000. 00 so you have 2225000 obamacare and thats with a 7000. 00 deductible so you have to hand over essentially 25000. 00 to these insurance executives but you cant use their product because well all of the the the the loopholes they have and the fact that you have a 7000 dollars deductible so again you always are poor it doesnt matter as soon as you earn any money its thats why obamacare prices keep on going out for those who dont arent subsidized its just like they needle and needle you and take every single dime youre ever going to earn so theres no its like calls goal is sort of like john galt right like you know like why earn another dollar because this is going to be taken from the insurance executives you know the lifestyle between someone making 5. 00 a year and so on making 100000. 00 a year in america are about the same if youre living the same quality of life yeah proximately but you know this is amazing how obamacare is basically getting middle class people to subsidize health care for lower class people the Government Forces middle class people at the point of a gun to basically to pay this extortion to obamacare Insurance Companies and were going to give that as Free Health Care to the other folks now and theyre extending that into negative Interest Rates right so if denmark for example they pay you to take out a mortgage they take the money from someone who is a saver so the saver who puts money in the bank instead of getting 2 or 3 percent on the cash they put the bank they are penalized 2 or 3 percent and the person taking out the mortgage is given. 2 or 3 percent in the form of a negative Mortgage Rate so again theyre having the savers subsidize the the the losers so its the losers finally the meek shall inherit the earth thats right in the bible the no savings no job no work ethic no morals no ethics they win in the end in this in this world in a fee system it encourages toll collectors youre either a toll collector or youre paying a toll thats what this situation is in new york for example i just read that one in 3 new yorkers are on medicaid so thats the free Government Run Health Care system in new york. Technically by law its supposed to be capped at 3 percent price rises per year for medicaid but they introduce some loopholes and its allowed to be 6 percent increase per year from the taxpayer to the Health Insurance and Health Racket industry hospitals and doctors and stuff and pharmaceuticals but in fact this year 2019 the prices are projected to go up 15 percent on medicaid spend so is draining from those people who are paying those obamacare unsubsidized raids they actually have to pay those rates where they have 7000. 00 deductible so they cant use their health care theyre paying 25000. 00 a year the taxes are going up to pay for this other part of the racket here where its just draining more and more of the tax revenue 15 percent a year because of course obama did not introduce any caps theres no regulation on spending at all so it could go up and up and up and up and up until every single last penny you possibly could save so you got to keep on running faster and faster to stay in the same spot and lower rates make the situation worse its like the economy blew a tire and trying to answer is to blow the other 3 remaining tires. How that makes economic sense well it doesnt and work it the timing is pretty bad because you know hes setting into the 2020 elections and hes going to looking at it every single president is a. Pyramid scheme so it doesnt matter but final headline lower Mortgage Rates arent boosting u. S. Housing the Residential Real Estate market is less affordable now than at any time since before the financial crisis so 0 percent rate weve driven all the way down to the bottom but at the end of the Looking Glass at the bottom when youre sinking you realize that theres no Wealth Creation theres no real jobs theres just passing the buck and youre either a toll collector or you pay the toll everybodys paid the toll and theyre broke now and the toll collector wants more money so what are we going to do but elect another buffoon it doesnt matter if its strong for whoever comes next or by dont brioche as Marie Antoinette would say hey weve got to take a break when we come back much more coming your way. Need to call tony i dont know. Im one of them but i think ended up getting one when theres a real body. Of an innocent. Victim i dont want or i can just let me as i knew she knew that i got him with me about it yeah i am kind of the little room kid gets killed and how did you feel bad when i say you may have to move out of one of the one that he i want to go to before i dont know. Welcome back to the kaiser report im ask eyes are time that i turn our conversation with well for a tour of wall street dot com wolf welcome back thanks for having me back max bonds bonds ok austria has got a 100 year bond it has soared nearly a 100 percent in the past year argentina there are 100 air bond has collapsed 50 percent whats going on in argentina wealth well argentina is doing what argentina switches its getting ready for another default and. You know. Then i think there should be fault in i think argentina should go to wall street every 2 or 3 years and say ok we change we have a new government now were going to pay this back and we want to borrow more and then issue 20000000000. 00 in bonds and then a year later asked the i. M. F. For help because they cant deal with this 20000000000 dollars dollar debt and that i may have lend some another 30000000000. 00 and or 39000000000. 00 at this point and then you know you get another government coming in saying no we cant pay this debt and were going to default and you know this is hard kena has always done things i think investors need to be just. Taking through the wringer on this and so have learned the lesson you just dont ever lend dollars a year owes to argentina and thats still a lesson there should have been warned decades ago and you know they they see the 8 percent yield or the 10 percent yield or whatever and they buy this arjan time argentine debt and you know they trade out of it a salad job on fun and then make some money the 1st time around and and then you know 3 years later that dad starts selling off because reality comes home you know and this is a cycle that argentina goes through time and time again and. I think as long as investors are willing to give argentina dollars and euros argentina should just go around and default on the us every time until investors finally give up yet theres no is really no other help i mean argentina has default its all many times its just part of its operating procedure in theres always a new generation of investors that thank god this time its different were going to make some money on this and the 1st year they do it in and thats alan to somebody else and then you know to some bond fund in some form a and and when its sitting there and. Chariots and. You know you have. A government that came a promise to market oriented policy a few years ago and they went on my bar and binged barton in dollars and euros because she cant bar and argentine pesos you know that its just a horrible garbage currency it with right now with with 50 percent interest on it in a against the value and crashed on a daily basis you nobody wants to lend you money in pesos they have to borrow and dollars and euros and yen or whatever hard currency they can borrow and and then they cant buy it back and so thats why they did it in a year after they went on this barring binge they already had trouble and they asked the i. M. F. I helped i. M. F. Came in with a reform package that said he got to make the central Bank Independent a little bit more independent you know because its part of the finance ministry it was part of the finance minister it was just print the money and you got to make some other changes and the government said ok well do that and thats right now 39000000000. 00 from the i. M. F. So theyve got you know the money they raised to the bonsai got 39000000000 from the i. M. F. And now the government is. The people have voted in and in a primary election and expressed very great dissatisfaction with this governments policy and. Giving for an end as from the end as government. Very high likelihood of coming out. Coming out ahead of the october election which will change everything and. Its just no more just part of the operating procedure in argentina and and as long as Foreign Investors follow this stuff i think argentina just going to keep doing this while i love to repackage that 3 minute answer in tonights rap song. Yes play it over and over again all over the world it summarizes our Global Economy and im still all that i remember when i was working on wall street in argentina 1st went bankrupt in the eightys you know and that was an exciting time you know wall markets rates are near all time lows and yet sales of homes continue to decline so are Central Banks pushing on a debt string at this point can lower rates help the debt saturated shrinking income consumer right so you know. Having reached the end game you know the stimulus of lower Interest Rates like any heroin or coke addict or junkie financially run out of stimulus because youre dead so he at that point but in some markets especially on the west coast or in some markets in the east coast your prices are really high the low Interest Rates are secondary now yeah i mean you know when you pay 1700000. 00 for a median house and meet you know houses in a small little rink you think how some moreno. You know you have other problems because now you need to have some 100000. 00 in income to live in that kind of house and we have that kind of income do you really want to live in a median house you know dont you want to i mean some nicer and and so you have. This problem or by are im not sure anymore that they really want to do this and. Mortgage applications are rising and not they didnt spike or anything but theyre up a little bit from what they were last year at this time and and. So those some increased interest from from home buyers in the United StatesForeign Investors have largely been scared off and weve seen that in a number of state appointed now and thats that has a big impact like in the bay area and in some of the expensive areas where Foreign Investors. And. You know investe