Thing collapses which is now a dead certainty well speaking of dead certainties of course the air bus doesnt drop out of the sky as frequently as the boeing airplane so now unless we want to pay the 10 or 20 up to between 10 and 25 percent of the various tariffs being applied i believe its 10 percent on air bus products so there is that but also you know its interesting that you mention the printing of money and. Like why is the fact that say for example the e. C. B. Has printed more money than the Federal Reserve bank why is not that considered a subsidy as well like oh are we going to start getting down to that sort of micro level whos printing and cheating more theyre all cheating essentially is what theyre saying but some are cheating faster and harder than others right its a form of cheating again when you leave the Gold Standard theres no way to have an accounting or a Balance Sheet that shows exactly whos trading with who and what a sorts of silly print money to cheat to undermine to try to grab a few extra pennies or euros here and there and that it is part of the scheme and that is what happens when the f. E. M. A. Money and Central Banks and. And and fractional reserve banking and it just ends up into this this huge enormous pyramid of paper that throughout history the past 300 years every single instance of paper money has collapsed 0 without exception now theres another thing regarding this printing of money for the various populations in order to avoid. Acknowledgement of the fact that he no longer have a real economy because of the Gold Standard mostly now one of the things that weve always talked about is the can tell in effect because when theyre printing money it goes to a certain class of people 1st a those closest to the central bank and then that goes basically to the big banks the big multinational banks and they primarily lend to housing speculators right so anybody whos already on the property ladder when all of this thing began. Well they benefited from asset Price Inflation so i want to look at this headline and this is a chart that planet ponzi misfire stein tweeted its the number of years a Skilled Service worker needs to work to be able to buy a 60 meter squared or 650 square feet flat near the city center and i want to look at in particular the top 3 of these cities because in these top 3 cities since 2009 this. Little dark circle on the left for hong kong paris and london is where cost how many years it took to afford a average 65 meter square property in the city center and hong kong it was 10 years in paris it was about 12 years london it was maybe 9 or 8 or 9 years back in 2009 now look at the jump since then hong kong is now over 20 years it was 10 years before and now its over 20 years it takes to afford just an average property in the city center paris its about 15 years now and london has jumped to just under 15 years so what do you when you think of especially hong kong and paris. You think of all the protests going on the very very very similar they both look exactly alike you have Police Shooting out peoples eyes and you have young off sorts of people not just young but like a whole range of classes i those who are outside who do not own already a 65 meter squared or 60 meter square property in the city Center Versus the rest right in a star coincidence that those are 3 of the must widely trafficked and most often used financial hubs in the world these are the 3 biggest of some 3 of the biggest finance hubs in the world so in those areas the cantillon effect as you call it the the ability to keep standing on top of the money pile youre printing yes and so youre you are building your own paper mountain and youre standing on top of that mountain and everything im there standing on our fine art you know that youre buying for 100000000. 00 a crack or a chateau in switzerland or a new lamborghini so youre standing on this mountain of paper money that you just printed for yourself and the people down down river were now in the valley the valley of poverty are theyre throwing rocks with them but youre getting higher up the paper mound so the rocks dont reach so then they have to get more agitated and they get more organized and mal youve got social unrest as you have during moments in history when the underclass decides that theyve had enough and munich is the top of the german cities that is overvalued or at least has jumped the most you know germans or famously dont like to go too much into debt you know i used to be in 2009 it was 5 years and now its its close to 10 years and i think frankfurt is pretty high as well there are also very few assets that people can buy so this is it mean this is the one last investment in our Global Economy its all based on its all basically. As we pointed out before the assoc not where all our entire economies are backed by the value of homes its always worked out as you see in hong kong paris the same way like it always ends up like this so being the French Version of the council in effect and monetizing property in this case Church Property to flood the economy with bad credit bad money and any pyramid scheme in a pyramid scheme so are and were in the new pyramid scheme of the 21st century pyramid scheme and the people that are getting abused by this pyramid scheme are starting to get extremely agitated as ray ballio hes the runs a bridgewater in connecticut biggest as far in the world he keeps pointing out for a couple of years that he hes looking for the pitchforks and the torches the mobs in the street to come after the people like great value hes warning folks yeah you should go read his linked in page and he posts some interesting blogs the guys worth like over 10000000000. 00 and hes just as an event hes a successful investor and what he says its like i just look at history im just looking at this objectively and neutral im not taking a side im just telling you that this is very similar period of time right now between you know the 1920 s. And 45 essentially the late 1000 twentys in 1905 is why people get angry and we split it a fascist and communist and thats whats happening now and this is part of it this tweet here i have from ben rickert and it shows that the velocity of money is the frequency at which one unit of currency is used to purchase domestically produced goods and Services Within a given period of time in other words it is the number of times 1. 00 is spent to buy goods and services per unit of time all time low the rise in the circulation the velocity of money people spending more Money Congress happened exchange happening the trickle down effect happening was in the ninetys up to 2000 and then its been down ever since and it continues to hit all the. Money is not circulating its being forwarded in these properties its being hoarded by guys like ray dahlia as he points out himself im not just like accusing him he says he cant spend more than that hes already i got so many chateaus and yachts that he cant buy anymore he would forget about them you lose you know ya you forget you have a house in you know in mustique or something yeah the economy is being choked out so heres a unit of currency this is a dollar this is the dollar you speaking up yes the velocity of money means that the treasury would print a dollar and youd buy done it and then the person the donut shop to get your dollar goes and buys a hammer and then that hammer at the Hardware Store guy goes and buys a nother dont it right so its circulating that yes its philosophy and healthy economy its moving slower but what has happened sense and all the bailouts of 2008 is that the Central Banks keep printing more money and they print trillions of these things but it gets stuck at the primary dealers and jamie diamonds j. P. Morgan because it gets choked out they dont they dont lend it out they dont circulate it they keep it they can word it yet ringback they keep giving it to people that are unable to spend it so we know the ordinary american is literally paycheck they dont mind without it Small Medium Enterprises now they lend it out to property speculators yes people are buying expensive artwork yes or they put it back on the balance here the fed for an Interest Rate right so again if the circle is extremely tight its not a wide circle of the entire economy its a little minuscule microsurgical like the tip of your pinky where the money is circulating only amongst 3 or 4 people and they keep getting wealthier and wealthier and thats why we as ray dahlia points out the Tipping Point of huge revolutionary social unrest yeah because also of course what happens is. All this stuff all of our economic problems are caused by these economy. Yes at the Central Banks is this false thinking that somehow they are superior and understand the world better than all these schmucks out here in the world in the real world so that is part of one issue that central bankers and bankers have is that if that money does circulate down and ordinary people the bottom 99 percent start raising their Living Standards they freak out like that is the scariest thing to them and they think that its going to be like oh my god you know this is this is going to cause inflation and so they seem to prefer mass deflation as we have they hate gold because they dont want anyone to have proper savings because they have economic sovereignty they dont want the law exposed as well and they dont want their ponzi scheme and pyramid scheme destroyed thats what gold does to paper money ponzi schemes and finally you know speaking of paper dollars you know that used to be backed by gold well u. S. Congressmen ask fed to consider developing National Digital currency to u. S. Lawmakers want the Federal Reserve to consider creating additional dollars in a letter sent to the Federal Reserve chairman german pow representative french hill republican of arkansas and representative bill foster outlined concerns that they have risks to the u. S. Dollar if another country or private Company Creates a widely used crypto currency and ask whether the central bank is looking into creating its own version we are concerned that the primacy of the u. S. Dollar could be a long term jeopardy from wide adoption of Digital Currencies internationally the bank for International Settlements conducted a study that found that over 40 countries around the world of currently developed are looking into developing a Digital Currency but i saw that story and it plays into what weve been talking about here because if all these stations create Digital Currencies crypto currency is it would increase the velocity of money and it would get countries away to move away from the dollar and the dollar is feeding the very specific ponzi scheme so it because it is digital gold because in a would be a crease velocity and there is incredible theres very very little friction between these Digital Currencies amongst the. Trace the velocity of money with skyrocket wages would go up and you would see at the club talking at the kleptocracy class would be challenged i would quickly in this last few seconds here say that only big coin is digital gold this is essentially all the coin and this will put all those all coins out of business because there is no reason to hold libra theres no reason to hold the 8th or any of the other vessels out to be another impact yet that the current crop of all coins would become extinct yes good for a bit coming now its great for because were going to take a break when we come back much more coming your way dont go away. On this conventional moment allows him to ask for the past 70 and seen and done today for the french pro who should. Soon. Be in the long. Beach you. Know new car so sit on the open much to mama its just that. What holds an institution. They put themselves on the line big get accepted or rejected. So when you want to be president and you. Want to. Have to be right to be 1st this is what before 3 of them or cant be good that. Im interested always in the waters about how. They should. In this community there are people who believe that its ok this other excellent food on my table its really hard there are no jobs and you see that ive got kids that ask and as a parent. I can come up with lots of arguments and theres a lot of conflicts within the games and between the teams most of the conflict i would say throw balls around money and most of their money is made. Close one on each other because he knows each other is Good Business the state of california alone makes 6000000000. 00 a year of the prison complex just to get some 20 a life where. You dont care anymore no i cares about you so you dont care about anything. Welcome back to the kaiser report im ask either time out of turn about firestone of planet policy that comments welcome back here max great to be here all right 1st lets remind the audience what exactly you do or what you did or what you do when you are a wall street banker briefly what is your area of expertise mitch my expertise is the 1980s was in the creation and development of new products you really are products oh hes the state of the our products max as weve discussed in the past. So. Looking for opportunities where there are no other competitors in less crowded fields i think that there are too many people in a crowded space like all of the people are jumping in on the fang stocks weve just had momentum over the past couple years all right so youre a contrarian youre early and to all kinds of Different Things are embedded in the wall street heart for many years and as someone deep in the heart of global fiat what do you think when you see events that happened in the repo market over the past few expect well i wouldnt for value so you know when i see something wrong in the repo more repurchase agreement market it reminds me of what happened with drysdale securities back in the 1008 we had a real problem a disconnect in the repo market so theres d something very wrong and if you ask the experts and speak with them on wall street folks know you that is certainly technical but i dont know that it is true he technical i think that there are a lot of the Big Money Center banks that are too big i mean look to asia bank which he discussed many times the Balance Sheet the dollar rotten derivatives that they have on it truly trillions of dollars in derivative products j. P. Morgan too big to fail too big to bail out too big to exist oh whos that is that never really broken up its fed has entered into the markets every central bank on the planet has added lemons and trillions of dollars in with quickly and that means guarantees for certain different Asset Classes the Central Banks have caused the problem max this product is just one of the ancillary issues that we may be seeing now when they when you create so much liquidity and carry purse of 17 trillion 17 trillion dollars in negative you in bonds this is the kind of problem you get unintended consequences side thats when the feds step several hundreds of billions of dollars as they did at this. Rape maneuver just recently is this the beginning of quantitative easing is it the same as quantitative easing is it there for the quantitative easing i look for the smells like quantitative easing on the short hand that is why what how does it differ well i did the permanent open market operation so theyre going to be adding liquidity d and eventually theyre going to come in and whether they want to call it q e 4 q e 5 weve discussed this before its genius vanity they will have to do q. E. And theyll have to do it for the end of the year as repo issues not going to go theres a shortage with enough market the fed as to come in and do something the only thing they can do is keep adding work with it into the market every day so the open Market Operations that they have will become permanent and it will probably go back to the on by goldman recommending that they dominated by 20000000000 a month or so is good q. B. I dont care what they call me been today you know it entered into place right now where we will see eventual negative Interest Rates in america i said this 2 years ago why i think that were in a whole load of change i think we should have done back during the credit crisis is never will go bankrupt is a normal market mechanism that allows insolvent institutions and insolvent corporations to go bust we have those back in january i highlighted the we were ponzi scheme months later atlanta i said theyre trying to sell this for 47000000000. 00 they lose the normal amount of money it is the definition of on but because there are so low Interest Rates and negative Interest Rates because children pouring money into illiquid investments you get some kind of the yield so if that happened eventually its going to hit its fan and its going to end really bad. No. You say you know theyre being slaughtered. People who have been with theres a high you should be trading above 10 percent fine d you straightening where. The world is. Already covering a lot of ground there lets just review some of the thoughts that you have so you are saying that quantitative easing for our q e 4 is baked into the cake were going to see that very soon youre also saying that negative Interest Rates are coming to the United States what that means is that as least in europe what weve seen is that people get a negative Interest Rate on their savings account ultimately at the bank which is the same thing