Appears to be spot on should be all fear the deep state. Kaiser this is the kaiser report so much so many things that yes. You know i notice that its basically crash season upon us and you could tell that because how dark it is outside all the time in the morning late into the morning that it stays dark and everything on the surface seems a ok but under the surface theres some sort of turmoil brewing in the Financial Markets in oh weve been looking at this repo situation and you know something apparently like at least one bank survived going under in the past week or 2 according to nick. But heres an interesting interpretation as well from Rick Ackerman at Rick Ackerman dot com hes a former market maker and financial journalist and he says repo rumpus foreshadows a short squeeze on the dollar the feds so far 128000000000 dollar intervention in the repo market slipped off the wall street journals front page thursday evening hardly a concern dont be surprised if years from now the squeeze on short term borrowers that cause this flurry of excitement is recall as an Early Warning sign of the Banking Systems coming collapse on tuesday there simply werent enough dollars to keep Short Term Loans rolling this implies that the dollar short squeeze that i 1st wrote about barrons and the San Francisco examiner more than 2 decades ago may have been array the dollar short squeeze the fascinating topic. This would be deflation according to the deflationists out there and how the collapse of the bond market the credit markets. Continued despite all the money printing despite all the attempts to reliquefy Banking System doesnt matter the internal. Of the bond market as its traded internally by banks is continuing to collapse and on the surface this is not reported because its too hard to speak of the fact that a credit markets reach such a state of disrepair disrepair. Its. Causing a run on the dollar and a short squeeze on the dollar in this way but you know rick is probably correct and you know the its just a corpse basically and they they cant keep it animated weve had so much money printing we have negative rates we have all these things to keep the system alive and most people feel like really great about the economy jobs are booming wages are rising house prices are booming everything is ok we also felt like that in 20062007 when we were reporting in the Financial News at that time we did you know i remember you going on france 24 when in january of 2007 there was a flash crash in the chinese stock markets it went down Something Like 1520 percent in one day and everybody around the world including wall street they were all like what is going on so there were like crazy movements leading up to the financial crash of 2008 and. This is before they begin to paper over really violence will he and aggressively but so here were looking at. Similar movements this could be something or it could be nothing but here Rick Ackerman says regarding the run in repose it is curious that a dollar shortage developed in one specific market at a time when dollars remain only lost in the exhaustedly available in so many others mortgage money is not tight nor are percent teaser loans for any credit card holder who is not in prison Big Companies have no trouble borrowing billions of dollars to buy back their shares borrowers in the repo market they are potentially like short sellers of a stock that has suddenly become unavailable which is to say they will be dead ducks on that inevitable day when even a slight whiff of panic wash through the battery of people in the repo market the repurchase agreement business who are putting up collateral for short term ones you know they dont while theres a penny i mean its ok to lose a bunch of people in the Mortgage Market its ok to disenfranchise the entire black community for example a so we did in 2008 for for a laugh its ok to crash the stock market periodical you for stock holders who are unhedged and they get wiped out i mean or its ok to wipe out a country like breaks it is doing because of the interests of Hedge Fund Managers who are looking for the next greece thats off for fun and games but in the repo market its the guys with a lot of money that they want to lose any money so they dont trust each other so the Interest Rates go higher so theyre there theyre unwilling to lose even a penny thats why theyre there theyre charging each other exorbitant rates because theyre cheap i mean theyre only lending for overnight and yet theyre not trusting each other the people in the Mortgage Market credit card. There is those are the dumb money that those people dont have any idea they believe you know all things are great whether they tune into fox news or m s n b c they think life is forever eternally perfect and the fed will always bail them out so theyre happy to spend and spend and spend but these banks have asymmetric information they know a little bit more about the true state of the debt and the derivatives and the deflation that might be coming down the road they also many people are suing that this was perhaps one bank Like Deutsche Bank that was that is insolvent and so we wont know that until later it could be a hedge fund some people are suggesting as well so we wont know the fact that we want now until its too late is part of the problem this time the fed handled the problem without breaking a sweat the next time however the cost might run into the trillions of dollars which is to say more funny money than the central bank can gin up on short notice when this day of reckoning comes the banks wont open the next day nor will credit Card Transactions clear although there is no way that even a prudent person can completely protect him or herself from the fall out it seems likely that those who hold treasury paper and gold bullion as insurance will fare better than those who dont and just does go on to say like. That gold is looking good at these prices and in this situation that is better to get it now while these just little tiny signals the Smoke Signals are sent out occasionally that youre seeing the early you know the tremors ahead of perhaps a bigger earthquake now its also interesting to know if its in the scheme or idea of Interest Rate apartheid. More you know if youre not part of the in crowd you you have to pay exorbitant fees on your credit cards are living in a bantustan of bad credit by design and its a way to keep the society in check from uprising right because if you are keeping them all isnt debt and on the short term credit crowd those are high quality credits and they wouldnt dare take any risk at all and you know i see the same thing in the way food is regulated right because for a lot of a large part of the population they have a certain standard in the food Regulatory Regime about certain number of rat hair they allow in your food for example and thats that theyre acceptable or but for people who are dining on the short term credit market it was you know on champagne on the highest possible standard you know its food its apartheid in the food business all its of everywhere is apartheid now thats the model whether its food credit security in from Drugs Pharmaceutical opiates heroin is just we live in a new apartheid state of course that we have we live in a command and control Financial System this is possible under fiats currency however the problem is that there is always an underlying real economy and real banks and real debt that has to be paid so these are the fact that we have a command and control around a real economy thats never works because eventually the real economy rises up and they. They overwhelm the control that you have over it so whether or not were at that moment it could go on another year another 3 years another 10 years but at the end of the day were at the end of a system of this fiats control command and control and you know i mentioned so here you had the repo market big banks primary dealers let lending to each other overnight and using supposedly great collateral as the basis and yet they couldnt even borrow for 10 percent overnight here on the other side heres a story from this talk dot com house flipper lending his 13 year high what can possibly go wrong the dollar volume of financed flip purchases in the 2nd quarter of this year jumped 31 percent annually from 6400000000. 00 to 8400000000. 00 according to adam Data Solutions that is the highest level since the 3rd quarter of 2006 so home flipping is back and lending to home flippers is soaring its up 31 percent in the 2nd quarter of this year he talked about the real economy and how these things impact the real economy well in the real Economy Companies are earning that are going down yes s. And p. 500 earnings have been going down for 151617 years now its masked due to stop buying expect the actual companies losing money retailers are shutting down by the thousands across america you go to the malls now and its half empty and the wages of course are going down adjusted for inflation theyre going down even more the real economy is dying. Its close to completely dead. The financial eyes economy the fake economy the home flipping economy the repo market should jive economy because ive got to make a payment on my yacht in greenwich because im an ex Long Term Capital Management fraudster living in a saloon and i need to quit. They that market is doing great but thats the real economy thats a Market Driven by. Potentates and charlatans and neo feudal meisters sitting on their throne of easy credit spigots thats not real but the repo market signaled something is going on at the very very top those guys own yachts the people not lending to each other werent even able to borrow for 10 percent overnight theyve been motwani however an investor with Iron Gate Development a washington d. C. Area expects to flip about 15 homes this year he says its always smarter to use a mortgage because you get leverage you can do many more deals wright said might want also the banks have become a little bit more easy and lending on this flip business they used to be a lot tougher so the dumb money is pouring in the money is there for the dumb money its easy for them to borrow 1 its easy for them to flip this also happened in 2006 right before they had World Economy the real World Economy went over the cliff 1st we saw this in 2006 which for 10 the 20072008 crash i mean quiddity crisis really quickly crisis q peter schiff were back all right were going to take a little break or i come back much more coming your way. Over situation. Grandchildren or little children ask their 3 grandparents. Is it true that. These cars used to people drove the. Crew crew. Will you. Believe they are putting out 3 more how credible are. You. Cause i. Was. A c e o. C you see he was. 11. Welcome back to the kaiser report imax keyser time now to turn to mark hughes go hes the c. E. O. Of morgan creek Capital Management right here in North Carolina were going to get his thoughts on bitcoin in the 2nd segment but 1st were going to discuss all things the current legacy fear system as it continues to disintegrate but 1st mark i got to ask is it a kind of dressed on monday korea down there it is it is i i for guys in many. A suit to come on my show this just for my casual clothes so i was at all you know watching all your tweets over the past couple weeks traveling around the world youre pretty cash but now youve now your suit. All right us all your socks thats good i got it at the flamingo socks go into any of the flamingo socks flamingo. Flamenco that would be a dance and i would be a dance and if these are the flamingos ok well more about that later but 1st lets discuss oh i shouldnt do that my sound guy hates it but its too late now sorry about that. Market what is it and how unusual are the events of the past few weeks and what in your mind is it telling us well its telling us that there is a shortage of dollars around the world how could that be because i thought they just print them up all the time willy nilly i think that is the common misperception is that they are just printed out of thin air and i think the challenge is that you know when massive debt is issued or incurred and then issued by the government someone has to to buy it and what happens is the money then transfers to the treasury and the treasury then hoards those dollars and so other people around the world have to scramble for dollars and i think thats what were in the midst of here is a global scramble for dollars twice a little more strength in the u. S. Dollar than we probably would have. Anticipated given that theyre devaluing it every single day by printing more of them but the one other piece that i think is interesting here is the information content of the fed having to intervene in the repo market it was that oh its not a big deal. 300000000000. 00 is a big deal i dont care you know who you are who you want but its a big deal and i think what it tells us is one of the banks perhaps more than one of the banks but at least one of the banks has a capital shortfall and thats whats having to be shoring up here is this the beginning of quantitative easing some have speculated that this is just the 1st steps that yes they actually government the coming in in there theyre on the short end but eventually this become the medium and longer and this is kind of the beginning of human 40 you agree with that i think were in q. E. For ever forget q. E. For me its q. E. Forever my x. It was less good than your North Carolina access fine were going to go another question because you make of that some badly let me ask you about this Dollar Strength for a 2nd so i know i said i get to pick one later but i got to ask this now you know because it has become a risk safe haven asset you know generally speaking thats thats the mean thats been circulating i simply so if the Dollar Strength is causing a little headwind because youre seeing because it is bent 10000. 00 back to 8000. 00 spend stalling gold also stalling and you know people are making the equation between gold and because being somewhat lower. So a Dollar Strength it poses some headwinds to both these assets yes or no correct absolutely and one of things that should occur in a. Environment where where the dollar weakens right that all should weaken if theyre creating more of them that should actually be good for real assets but to your point were seeing the exact opposite were seeing scramble for dollars Dollar Strength and a weakening across the board of real tangible assets gold Oil Commodities and because so that signals on a big macro picture here if we can extend this a little bit deflation. Yes regular days i talk about the killer disease all the time so we have bad demographics every single day in this country 10000 people turned 65 same thing in europe so we get too many people who are older non productive non spenders not enough working age population growth we have debt massive debt in fact the deficit and debt more ds are rising at an alarming pace because of the fiscal d irresponsibility in washington and brussels and elsewhere actually in tokyo as well so you have massive debt in the developed world and that all leads to ultimately deflation and whats interesting if you go back to the original quote i think was Thomas Jefferson who said if the American People ever allow banks to issue money. They will be theyll have their future stolen from their children 1st by inflation then by deflation so we had the inflationary spike in the seventys now i think were in the deflationary death spiral ok deflationary dust by this has been with us for a while now and the answer going back 10 years going back to 2008 was you know were going to put a lot of money to bail out the banks and some economists out there were saying well that will cause inflation well see a gold spike didnt happen happen and in fact weve seen increased amount of deflation and the deflationary death spiral as youre calling it is seems to be exacerbating and can we therefore conclude that this idea of printing money is not fighting deflation but are at the point where you can say its causing causing deflation absolutely theres no question that if you print more of something you create more of something again out of thin air it will devalue it and that has been the playbook really since the turn of the century i have this great chart that i talk about all time from 7 176. 00 to 913. 00 the dollar was. Roughly worth a dollar now had ups and downs around though the wars civil war cetera but from 1913 to today you know weve turned a dollar into a nickel so theres a joke from jay leno he says it was a rumor that the treasury wants to convert from paper money to a coin where to have its called a nickel and so you know theyve been doing a good job and to your point if you think about the issuance of currency particularly in the q. E. Form to bail out banks thats what the Central Banks do thats their job ok back to her 2nd enrich themselves when youre bailing out the banks and banks that should not get bailed out because im a horrible loans im a travel Business Decisions if we live in a free market cap of society they should go bankrupt in a way replaced with Competitive Bidding but by feeding the banks as theyre called youre crowding out those businesses that could create productive wealth generating businesses and jobs always right so that money pri