Guys are this is that guys are a part occasionally need to reset everything needs to be reset or waiting for a global reset and even intellectual reset we just need to. Reset. Well lets reset this episode of kaiser report. Started again now were actually going to start here again this is a new york city where a kaiser reports we have been here for a few days and i do i do want to say that despite many of the headlines talking about oh possibly on the edge of a recession i see this over and over on twitter many headlines from the Financial News from all sorts of commentators saying that were on the verge of a recession and certainly you could say that perhaps germany and europe might be but if youre Walking Around manhattan and your old in times square area or bryant park what youll notice is that there is a huge amount of shopping here and a lot of i mean its way more than last year for example it seems like more boom time right now and consumers spending more money that they dont have but nevertheless they are out here spending well its all a function of the stock market you know the stock markets up by trillions of dollars and a lot of there are millions and millions of millionaires in america and around the world of course a lot of tourists are here and tourists from other countries were millionaires have been making millions and millions of dollars trillions of dollars based on the boom in stocks and bonds and they come here and they spend it because this is a great place to spend your money but the millionaire class in the Billiard Club has been exploding to the upside and theyve got a lot of dosh even though we were saying at this hotel near bryant park and just an ordinary hotel with an ordinary room it was a 1000. 00 a night on a saturday night so it was that full manhattan is that full right now so there has been kind of a reset that has happened since the financial crisis of 2008 to 20091 of the things we covered at that time extensively was the greek financial crisis because here we saw the troika enter and impose mass austerity measures and they still by the way have austerity measures out until the i can see that they have to. On a primary surplus for example of 3 percent of g. D. P. Which is on heard of in almost all nations theyre maintaining that at the moment but heres a story that is remarkable in light of the fact that consumers are shopping like crazy racking up debt like crazy like they actually have jobs that are paying them great incomes heres the same post financial crash from greece one of the most ridiculous charts and financial history greece got paid by investors for issuing debt they sold 3 month debt at record low minus 0. 02 percent and heres your chart of the 3 month yield on greek debt its now negative max all right well loans kind of imply that somewhere in the mix is collateral right so people are putting up collateral to get a loan so in the country of greece the collateral that is the Greek Economy is being used to put up against these short term debt instruments and theyre getting negative rates which implies that whoever is making those loans hasnt really looked at the litany of the collateral which makes sense because no where in the world today are economists or policymakers or or bankers really taking into consideration the value of the collateral the collateral value doesnt make any sense the only thing that has any value is the ability for banks to publish numbers that are then sanctified by their respective governments to suggest that they are liquid that they are solvent when we know that in fact theyre not solvent so the Greek Economy is insolvent but you can still use it as collateral against these short term debt markets because the pope of finance gives it their blessing and they say that its good collateral so the basic function of economics is no longer at play. Here it goes you no longer need to prove the value of your collateral in any kind of a loan situation so you have loans on loans on loans the fancy word on it is hypothecation and re hypothecation of course in europe still centered in london they have the notion of infinite complication you can lend out the same non liquid security an infinite number of times to get garner an infinite number of fees in cash flow and so that would include greece and it doesnt matter if its a centrally or walking dead economy you can still use an infinite collateral situation where theres no accountability and you have the complicity of a Global Cartel of extraordinarily corrupt central bankers well the thing is that most people will look at that and say yeah everythings fixed its all great again we could all just relax right the economy as we covered all the structural problems within our Global Economy are fixed the structural problems within the euro zone are fixed the fact that germany has an undervalued currency for their economy and greece has an overvalued currency for their economy its all fixed because look its negative rates but this is exactly what weve been talking about here in kaiser report in terms of moral hazard so here we have whoever these investors are at this point im sure is probably the e. C. B. Who is throwing money at this thing will lose money but the fact is weve we have the same situation with argentina remember we covered that 100 year bonds which were oversubscribed only a year ago and now obviously theyre bankrupt again and their currency is class by over 50 percent here with greece is this is a sign of disorder and chaos in our Global Financial system that its corrupted to the point where again we are unable to price risk we are able. To price anything nobody knows the value of anything nobody knows the duration of anything there is mismatch and all of that sort of stuff and thats why people are out shopping as if there are no tomorrow or maybe there isnt now imagine an alphabet with various letters and and vowels and lets say they alphabet starts to transmogrify before your very eyes and instead of having a bunch of different letters and bowels lets say the letter a starts multiplying and pretty soon most of the letters are the same letter the letter a and then every single letter in the south bed is the letter then everything written in that alphabet would be completely unintelligible now imagine the economics you have Interest Rates that are different for short term medium term long term you have very securities that are structured in a way that make reference to those Interest Rates and you have investors who are looking for a risk reward based on the risk list rate of return which is a short term treasury market and the whole thing is built on having all different kinds of varieties of maturities and all different kinds of securities and the ability to try to sort your way through that to create the language of finance well now we have a situation where one letter in that our financial alphabet 0 percent Interest Rate has taken over to become the only letter in the alphabet of financial finance everything is now written in the key 0 percent Interest Rate or the letter of 0 percent Interest Rate and so nothing has any value anymore so if you say that youre going to give a negative Interest Rate to greece you could say that you could equally say that every olive in greece were going to claim according to Goldman Sachs or whoever is worth the same as a. Brick of gold you could make that statement and you could blend against it theres no one to stop you from making that obviously fraudulent statement theres no one stopping anyone from bankers making the obvious lee fraudulent statement that. You can have a negative rate increase because there is no variety in any of the characters that make up Global Finance any more everything is that 00 is is predominating every single conversation that comes out of the mouth of every financial writer in the press and on television is 0 every security is now based on 0 and the entire mix of this phantasmagoria of Global Finance is is all blending together into one huge void of worthless. Crud essentially that has no value cry it is a good point to spin into my next headline with crude oil because. What were also seeing is here we have a polish bureau a command and control of the value of money the price of money which no longer time no longer has value with this money in order to bail out certain sectors of the economy certain bondholders certain economy certain banks the command and control situation in that emanated from venezuela is kind of in the story about haiti because haiti is back in the news and you know this is in our hemisphere over here in the u. S. Just off the u. S. You know florida coast out there in haiti we have yet more disaster and it reminds me of course of 20082009 number all those protests in 2010 and 11 as inflation reared up and the price of food staples and things like that roared ahead and oil prices and stuff like that so we saw unrest in various economies all over the world and right now were seeing the same thing by haiti is really having a lot of on arrest here explainer was behind haitis deadly protests and possible outcomes opposition leaders and their supporters in the nation of 11000000 are calling for the resignation of president jovan l. Moyse 51 amid anger over fuel and Food Shortages a steep currency devaluation and corruption allegations this is the longest stretch of demonstrations against noise since they broke out last year at least 17 people have been killed and 189. 00 injured according to haitis National Network for the defense of human rights and where crude plays into this is so theyve raised the price of fuel and why that has happened is that haitians are angry at fuel shortages since the collapse of the Petro Caribe Program under which venezuela for a decade offered aid and cheap financing to several caribbean nations to bias gasoline diesel and other products the cash strapped country has. Struggle to import and off market prices gas stations are regularly out of fuel for days at a time and blackouts increasingly common the shortages plus government attempts to reduce fuel subsidies have caused prices to soar exacerbating an already dire situation half the population lives on less than 2. 4 dollars a day they have market failure in crude you know thats been true for a number of decades now for 2 reasons number one the financing of that industry is been done with ever cheaper money due to the trend that we just talked about the manipulation of rates toward 0 so therefore the crude oil has failed and 2nd of all there is no cost for the extra analyses of the industry the environmental catastrophes that should be borne by the executives of the Energy Companies not just allow the planet to become ecologically failed so those 2 things have contributed on the periphery to a country like haiti then again taking them being the catastrophe from venezuela which is the part of them closer to the catastrophe that is saudi arabia and the us and the petro dollar that goes back to the seventys in the seventys a petro dollar which introduced the idea that there would be a false artificial market for saudis oil products based in the false artificial market of u. S. Dollars and after 30 years 50 years of this its created a situation of a failed dollar market and a failed trued market which failed venezuela and is now failing haiti but you know in the us you have price discovery based on true supply and demand and you wont have a functioning economy you can have only a failed to manage control economy when they ought never work either so as long as everyone gathered around the campfire of 0 trying to warm their hands on fake fire which they never seems to work because it doesnt exist that nothing is ever good its only gonna get worse. And the situation is this similar to greece similar to argentina similar to all these ever nonstop disasters is that the petro curry program included a fund for infrastructure and social projects in member countries opposition politicians say no serious projects were ever completed so there are allegations in a report by the superior court of auditors of the embezzlement of billions of dollars that were meant to be for infrastructure spend of course haiti had that massive earthquake a few years ago that killed 300000. 00 people and theyre still trying to recover from that so you know we know the u. S. Role in plundering the billions of dollars that were meant for economic recovery after that earthquake so there are certain economies that just are dont have the institutions or the my or the power to stand up to the plunderers right jim politics for decades and totally dominated by the Energy Sector and the Energy Sector because its so reliant on capital is reliant on the corrupt banking sector. Anyway were going to take a break when we come back were going to continue. Dont go away. There are no official statistics in india concerning children who have been lost or separated from their parents some are to estimate that every 30 minutes in the country a child goes missing. You know. What do you call it. The National HumanRights Commission stated that 44. 00 minors go missing every year while the police quoted. The United NationsChildrens Fund has described the situation as genocide and various sources suggested in india there are several 1000000 missing women and children. Is this is a sticker from a water bottle found in the stomach of a fish the brand is part of the Cocacola Company which sells millions of bottles of soda every day the idea was that lets tell consumers there are the bad was there the litter bugs are throwing this away industry should be blamed for all this waste the company has long promised to reuse the plastic. Special projects funding. On the. Phone now the mountains of waste only grow higher. Welcome back to the report special edition back to the stacy part to stay see what it well we ended the 1st half on talking about haiti and whats going on in haiti because there are many protests and the news doesnt cover that of course because there are other more i mean you only have so much time on the cable news to cover it and you want to talk about your geo political enemies and stuff like that and haiti there have been billions of dollars have gone missing and i want to compare that to what we have the situation in america because we have this farce on the cable news of everybody pointing their fingers at each other its kind of like you know Quentin Tarantino film theyre all pointing fingers at each other of whos the most corrupt but theyre all corrupt i mean theyre all working. And across situation all the children of the sons and daughters of politicians the nieces and nephews of politicians and in haiti there was a quote from economists at her and neil who said that the days of lockdown have paralyzed the Economic Activity and made it worse but at the end the main concern is that the government is not able to give an appropriate response the country is out of control so i want to follow up on this the absence of an appropriate response like we see that here in the united sates we see the Democratic Party has no appropriate response to the humiliation the utter utter and deep you really ation that hillary suffered at the hands of donald trump and 2016 they have no appropriate response they cant look at their own economic policies and look at themselves and say what did we do wrong what was like what were their perceptions of corruption with my own family and my own funds and were we any less or more corrupt than trump and all of his sleazy stuff absence of an appropriate response this is what they say in haiti and this is the problem in the u. S. They say it was the u. S. Like haiti and then you read a piece like we just read from matt taibbi in Rolling Stone who is suggesting that in fact the u. S. Is undergoing a position or a transition right now where theyre not going to wait for the next election and certainly look who is a permanent coup and so we see this in countries that are in permanent chaos and haiti would qualify as a country of this type so the u. S. Is now entering into a permanent chaos a permanent coup and no appropriate response should be given to the democrats democrats dont seem to understand that there is a ballot box that happens every 4 years and thats the way its set up and unless you want to change the constitution you know theres nothing else you can do so they just theyve opted for what you see. The end countries like haiti are better as well or myriad other countries we can mention panama or you know theres dozens of them usually protectorates of the us you know they undergo coups right so the us is now in permanent coup and this is the kind of language or people are using to describe the us we covered that a few months ago talking about the Yellow Vests Movement in france there was a philosopher and author who wrote about the fact that the elite whether in paris or london or los angeles or hong kong theyre in a bubble where they they are on able to come up with appropriate responses to the needs of the people because they themselves are so divorced from not only their economy and politics but they theyre close to the Printing Press theyre getting the free money their house prices are going up and they dont know how to respond they are like Marie Antoinette they dont know what these people want and the only solution they have a sore throat them conspiracy theories you know brioche well whats quite unnerving and subversive is that the worst things get the cheaper money gets you know the solution to all problems is cheaper money and used to be 50 years ago 100 years ago there were other institutions in the in america there was the church there was the Education System there or there was similarly there were communities there were civil actions in ba