From the u. S. Government this story actually hits here in North Carolina while way long relied on suppliers like corvo incorporated the North Carolina maker of chips that are used to connect smartphones with cell towers and sky Work Solutions will burn massachusetts based company that makes similar chips it also used parts from Broadcom Incorporated the san jose based maker bluetooth and chips and Cirrus Logic Incorporated in austin based company that makes chips for producing sound theyve replaced all the ships with their own or other alternatives now well id love to see america get back in the race but youd need entrepreneurial ism and you would need the this aeration in scorched earth tearing down of all the zombie banks that are there only because of cheap rates right and they suck up 3040 percent of the g. D. P. Of the economy of the United States of america so theres no room for entrepreneur alyssum anymore not a not on a world class basis i mean you have people coming up with. You know a great ways to you know pocket fisherman or Something Like that you know novelty products that we sell out here in the u. S. But nothing serious in fact nothing serious is in this next headline again ray dally you know and i believe hes been watching the kaiser report because i noticed that keeps on coming out with statements or newsletters or blog posts or conversations on stage that basically just steal our stuff and im pretty sure hes doing that so send us a signal next time like blink 3 times fairly fast or send an a u. F. O. Going faster in the background because you have always are always good for ratings really here is the headline and Paul Tudor Jones is back ray dal you and Paul Tudor Jones warner we will kill each other if our broken Economic System isnt fixed on stage i think it was in connecticut and said because the world is looking for yield companies can sell dreams rather than earnings the number of companies that produce earnings is the lowest since the dot com bubble in terms of their need because you can sell a dream as a result of the accumulation of the money at the top in technology we have a situation where naturally those who have a lot of money also have a lot of money in credit but it doesnt trickle down and as a result we have a situation with a large wealth gap justify stolen from me from just a few shows ago i explained stories sell in the case where we work the story was were going to have a certain percentage of the Global Real Estate market and theres so much credit free credit out there you can get a few billionaires to market the value that story or dream 48000000000. 00 but its actually theres no revenue theres no earnings its there its a complete ponzi scheme so thats a problem we have identified when you have unlimited trillions of elbel to folks that are board like in connecticut or a dahlia and Paul Tudor Jones are board billionaires Paul Tudor Jones well Paul Tudor Jones there would be no ray deluge paul. Tudor jones invented the modern hedge fund the modern approach to trading. Rebellion now capitalize on and makes a big fund out of it but when you have board billionaires in connecticut who are lounging around on their yachts or at the Bell Haven Club sipping my ties and they have nothing to do they have like i heard a story about a company thats going to take over a Global Real Estate or you know i heard a story about you know some guy whos going to launch title lysaght of his pocket using a cheese grater you know give a 1000000000. 00 whatever we have to many billions because we get it for free it when the cost of money is or 0 the value of money is their own if the cost of money is negative then the value of money is less than 0 but hes agreeing with you is a great what hes not suggesting they raise rates though he doesnt make that suggestion hes unwilling to make the proper response to his comment and simply quoting me on his newsletter is not enough the end also needs to offer a solution as well you cant just if the guy you 1st of all hes overrated is performances horrible and he just gets a lot of cash because he rips our stuff off well hes kind of suggesting m. M. T. Like a quantitative easing for the people i think thats kind of a suggestion because he says there are 3 things that exist today that havent existed since the 1930 s. A wealth gap thats driving populism on the left and right the absence of effective Monetary Policy and an emerging world power china challenging an existing world power the us and i think that last bit is the most important thats always the most important because no great power wants to give up their power they always turn violent and we saw that basically all these world wars that weve had in the past century are a result of that he said that in my opinion were in the end in the late stages of our reagan served currency system its a Monetary System not only do we have negative rates but were going to have much bigger deficits and thats not half the story because the. Larger story is unfunded liabilities those are pension liabilities and debt liabilities so he believes the dollar is that end of the u. S. Reserve currency status around the world and of course he can still that from us ok so why is this significant aside from the pilfering going on by rate dahlia of our content its because c. Has a was a 200000000000. 00 fund something enormous. Here is actions move markets right as george soros would would would refer to as a reflexive. City reflexivity you know your actions will create prices you know youre not falling prices are creating prices and so thats why this is significant if you believe this to be true and he were to suddenly go well i understand he did make a very large bet on a negative bet on the s. And p. Futures i think he put one or 2 percent of his portfolio in denies that he just says its a had rights as the rest of his sport ok fine enough but on the margins you know as a hedge you know thats where he has the Biggest Hedge Fund right there when youre he could be building a position right so youre putting on also he cant tip a san and say im going negative because then he was going to front runner a dahlia right so hes going to say well its ahead at 2 percent if that could be a position hes building it could be 10 to 20 percent negative this Time Next Year if thats the case then he by virtue of his actions yes and people be down thats the problem with the one percent that actually the 00 point one percent taking away all you know running away with all the wealth is that when you have like j. P. Morgan for example its a massive bank like it dwarfs all others and one of the theories about the repo market is that its them having all the liquidity that caused the crisis theyre here dahlia was saying yeah there is a large bet relative to everybody else in the market that the s. And p. 500. 00 will crash but its only a small small tiny percentage of my huge Largest Hedge Fund in the world and were just heading our position but just his. Tiny percentage of his wealth could distort the entire market but if you want to go 1020 percent negative in the fund he couldnt do it all at once you know what the size of the fund hes got to take steps hes got to build a position over time so its going to be a lot of fake news coming out or a dell you know and he loves to be transparent socalled with a huge reports and is book of theories and facts which is like hundreds and hundreds of rules or a dahlia which can be summed up in 2 simply buy low sell high thats the entire rate of any money manager thats ultimately all you need to know and so he could be building a huge position but hes like a tell us because he has his customers as clients that he asked to serve not us his solution is kind of quantitative easing for the people which steve kean has presented on this show and the other thing that steve king has always said is a government deficit is on one side of the Balance Sheet and its the benefit of somebody else as an asset for somebody else on the other side of the Balance Sheet usually the population the households in that economy but again when you have a oligarchic up top or c. And a corrupt system here it goes to the top 0 point one percent and Paul Tudor Jones mentions that he insists its not markets that its not just the markets that are running away but its the 5 percent budget deficit in the u. S. That has caused us stocks to outperform he said clearly asset prices today whether its us stocks or its Interest Rates or its the dollar is all priced off of in my opinion a 5 percent budget deficit with this incredibly overly stimulative fiscal policy combined with overly stimulating Monetary Policy is creating this us exceptionalism that one day like if we normalized our deficit to levels more popular in europe where they have 3 percent a budget deficit we see completely different valuations of the stock market the dollar excess waste pointing out something weve pointed out on the show is that the banks are making junk loans and for corporations to consolidate and to create these a behavior of some private equity firms that are. Making the World Private and eliminating Public Markets and for their sins the central bank absolves them by printing more money so remember back in medieval days if you committed the papacy you could buy your way out of going to the netherworld by giving the pope some money and you could with an indulgence write you paid your indulgence and you could buy your way into heaven all the people are trading Financial Center in america can buy their way into having a private jet. On the tab of the u. S. Taxpayer by making an indulgence with the Federal Reserve but the dollar currency money a supposed to irrigate the entire economy is supposed to nourish the entire economy and this is what you have when you have a corrupt system is not only does Monetary Policy that does the spigot go directly to the very wealthiest but if it appears also fiscal policy is thats all we know is to give money to the top one percent and hope it trickles down but it never has trickling down the simple solution for this obviously is to a let some of that money trickle to wages but they wont if you eliminate wages and you eliminate organized labor then you will only have money flowing into the oligarch class says if we dont fix it youre going to have a revolution and were going to kill each other right thats not a populist movement if you want to say thats populism then so is the declaration of independence the constitution of the bill of rights ray what country are you living in you for a composer all right were going to take a break and when we come back much more coming your way. Im going to fulfill the repeated promises possible to the people and promise to be there with all but be. Ready for a long. Time. To perk up now you want to work. No. All. I can link up my. Facebook and google started with a great idea and great ideals unfortunately there was also a very dark side. They are constructing a profile of you and that profile is real its detailed and it never goes away turns out that google is manipulating your opinions from the very 1st character that you type into the search bar it will always favor one dog food over another one comparative Shopping Service over another and one candidate over another they can suppress certain types of results diced on what they think you should be see if they have this kind of power then democracy is an illusion the free and Fair Election doesnt exist the more growth we give them the sooner were all. Welcome back to the kaiser report im max keyser time now to return to our conversation with dave column he is a professor of our data chemistry at Cornell University were talking to him about his year in review newsletter he puts out a very extensive very pithy very insightful year end review thats full of nuggets of wisdom dave welcome back i think i will be back you used the phrase quote a rolling lone gathers no loss now that we are near 0 rates some much lower do you think us rates can go and Michael Hudson who dont know if you know Michael Hudson very respected economists been on the show many times he thinks predicts a negative 25 percent on on rates if the intention is to bail out creditors what do you think theyve column cray hes wrong. But theyre trying to set us up to go for it or try to soften a target for negative rates i think theyre trying to soften targets for our for massive q we. No matter what the fed will ever admit theyve just blown it and so dont just keep doing weird stuff. Or am. I count to 3 quarters of us gold homers are going to do really well they drop their rates down there youre a chemist over there at Cornell University a professor and you must have some instinct for the laws of nature and what do you think of time having 0 value or less than value any value if we see negative Interest Rates time has less than 0 value with a negative Interest Rates dave column how does that how youre a physicist area chemist how does that work seem stupid to me i cant imagine why you would lower money but that the credit markets are so messed up theyre no longer about you know creditors and borrowers meeting to haggle over price and so on. You know if the feds going to provide all the capital and whatever needs they dont need my capital so they know i dont need an Interest Rate and i think i probably dont need to retire either as a separate issue so. I think theyre screwing up the system i think i think the central bankers are so too big for their britches they believe the boy when he they skew i want to say ah i think im smarter than i am by recognizing that i dont know what im doing now but if time has a negative interest then were going backwards in time is this so banks on wall street can go back in time and steal from customers from decades past because theyve already looted every customer they possibly can Goldman Sachs and others been caught looting from their own customers their own customers or have been bled dry they want to go back in time and loot from the customers in the past is that what negative Interest Rates are all about to scientists to explain this to me. Yeah maybe i have disappearance or needs it. If there are people who are paying interest on loans. To get to buy debt that they have to pay interest on it that. They can sell it to some other india i think thats the system or if that is got to be happening with all those negative Interest Rate loans if there are people on the margin who by the bye debt thats thats returning negative numbers take the square root of negative one for all i care right its just stupid and i think it will destroy the Banking System i keep hearing the bank system start by the low it low negative Interest Rates then why are they the Banking System sir i do believe the transition back to normal going to be a bloodbath so i think theyre afraid of that yeah i think the reason they do it even though it hurts them is very simple its an example of suicide capitalism and weve been saying this develop over the past 20 years where the terrorists there their theocratic fundamentalists or their wall street fundamentalists theyre both looking to blow themselves up for their ideology one follows a religious ideology and one follows a misreading of adam smith but theyre both terrorists now Michael Bloomberg was worth 30000000000. 00 in 2008 now hes worth 52000000000 dollars 10 years later hes running for president to stop people from taking all that free money the fed gave to him through asset Price Inflation do you blame the population for being angry about the unfair redistribution of wealth to the top in here dave youve got a lot of students i would imagine you who are actively are the other students beginning to realise that their future was robbed from them by the likes of Michael Bloomberg i guess i dont know if they know who did what but you can walk into a satellite and find a person who feels like it and rob and so i dont know if the students realise a bit of rob because they havent yet found themselves unemployed d. And so i dont know if theyre aware d. You know you manger in social justice. And you somehow think some employers going to actually hire you what employer would hire someone made for him in social justice i think that would be a toxic job applicant for me. Somehow sought you know its such a complicated story that again it keeps coming back to the central bankers who are the only ones who really have a financial so to be adults in the room and theyve blown it and so theyve theyve handed over the control of the asylum to see to wild speculation and to blame the speculators for spotting opportunity and speculating and im not inclined to do i also would question the use of the word redistribution. I think it is the distribution of wealth its flawed saw i think that weve missed price capital when labor so so capital so cheap now that that labors expensive relative way south i think thats hurting the system and i think if if the system was distributing wealth correctly and 2nd to be fair and you go