Tower economic thinking elite is money printing is going to solve all these pandemic problems now its like the child from ron paul and a lot of ways because he started talking about the problems associated with money printing in the Federal Reserve 2025 years ago during the 2008 crisis people started to more aware of this when big came around suddenly a whole new generation started to understand the connection between money printing and the said and economic weakness and now i think its becoming mainstream knowledge that the problem is the say the problem is money printing the problem is subtle banks and so that problem goes away that expect more pandemics and more financial catastrophes of course the money printing for the past 20 years in particular since the crash of 2002001 the dot com crash has really covered up all of this mouth. Since and and basically stealing from the future all those generations that got to live back and 20 years ago and accumulate assets got to basically pull for the wealth of the generations but i want to look at some of the headlines and the data points that ive been looking at over the past week aside from the pandemic is the pandemic of money printing and currencies because currency markets are the biggest market in the wallet 6 trillion dollars today but there have been moments where theres actually been no the quiddity theres nobody been willing to take the other side of the dollar trade so the 6 trillion dollars in daily Forex Trading has evaporated and weve seen chaos absolute chaos there we see enough strong in dollar fall over 21 percent against the u. S. Dollar in just the past 2 weeks weve seen the euro down 7 percent in just one week its down well over that now or oil prices were down 22 percent then up 25 percent shoot volatility there of course were still kind of on a patch of Dollar Standard so thats also a proxy for the dollar and the Oil Price Collapse has also been part of the situation because its caused a shortage of dollars because every what everybody in the world has to buy their oil in dollars and because the prices collapsed and demand has collapsed there are fewer dollars out there on the rest of the world outside of america which is causing this liquidity shortage last like heisenbergs uncertainty principle applied to be for export it for the currency markets these currencies only exist to the extent that theyre being observed right because they are phantoms they are holograms they dont tie that anything economic theres no Economic Activity to support a 5. 00 to 6. 00 trillion 1. 04 x. Market theres no economy that would support that its purely a. Kind of a manifestation of algorithms that are controlled by computers controlled by banks who have made a terrific profit trading phantom money this money and so now that no ones looking at it theyre looking at their shelves full of canned soup instead because of the pandemic then the family disappears it only exists if youre looking at it no ones a look at it right now. So its gone i want to look at this interesting tweet that happened in the past week from denton pirro were going to actually interview him here on kais report but hes been talking about this dollar the dollar is the problem right now for the Global Financial system thats why you see so much of the chaos it is obviously the pandemic in the fact that everybody in the world out there high watching this you know theyre all at home and trapped in home and not able to work not able to produce and not be able to create wealth but the dollar is the linchpin to this global debt based system which is collapsing deflationary bust accelerating now with oil down 22 percent today 75 percent from january higher us 5 year real rates driving up u. S. Dollars driving liquidation of growth assets time for real donald trump to intervene and for its markets to weaken dollar before it destroys entire system markets not functioning right then a dollar is a runaway Freight Train and you know it goes back to our old from the character when we started doing kaiser report more than 10 years ago the story was icelandic economy collapsing Irish Economy collapsing the swiss a commie was in trouble because of the carry trade so people were doing Interest Rate arbitrage the monks different currencies over the past 5 or 6 years very aggressively people have sold dollars to buy these emerging market currencies because they could get a better yield on those currencies suddenly when all liquidity disappears during doing the heisenberg uncertainty for its market the schrodingers cat of markets everyone is then short dollars they have to buy those dollars back because there are losing catastrophic way in all their non dollar plays in the market and this is causing a runaway Freight Train of the u. S. Dollar going higher which is debt deflationary deflationary which means that the all bond market collapses and im really impressed with the speed and voracity which the bond market is collapsing final. Lee after 5 or 6 years of calling the top of the bond market it looks like weve finally did hit the top of the bond market instead of harassing me i think you meant velocity the velocity of the collapse in the bond market of course what youre suggesting there is that you know people are essentially shorting the dollar by going along all those other markets and this is a huge short squeeze as people try to find dollars to close out their trades or take the other side of the trade or whatever you know as were seeing were seeing like all these sort of bailouts for the consumer coming the citizen under a certain income and thats coming from the treasury the fiscal side congress is really saying that then we have the fed printing a lot of money for bankers printing credit essentially not money and weve seen this pressure for bailing out all these Industries Like the Airline Industry and people its interesting to see on twitter because people are starting to really notice that all the airlines for example spent 96 percent of their pas all of their net cash flow over the past few years on stock buybacks so now theyre seeing what a Balance Sheet a destruction looks like right so just to review a company like boeing or American Airlines or Berkshire Hathaway they give themselves options to buy stock so lets say the stocks are 100. 00 and the executives are given free options to buy stock of a 100. 00 and the value of that option might be 1. 00 you get a 1. 00 option to buy the stock at a 100. 00 then the company borrows lots of money from the fed for a 0 percent Interest Rate 0 cost and they buy back their own stock so makes them look earnings look better because earnings are now distributed or applied to less shares of stock so the stock goes up 2030405100 percent so that 1. 00 option is that worth 567080. 00 and you got it for free so they just cashed out and theyre just taking all that money especially from the company its Insider Trading and its also. Counting frog and its head it was used to be illegal until 1902 when reagan came in and made it legal suddenly and i want to point out because were not going to go too much into stock buybacks because i want to talk some more about the observations during this pandemic because weve talked a lot about stock buybacks but the important thing here is theyre not only taking Credit Credit is one thing you can go bust you can just the fault on your loans that you owe the fed whatever but here theyre using cash actual cash from their Balance Sheet the most precious thing of all cash is king as were saying in this class you cant conjure it up out of thin air and the fed can only print you more credit they they cant give you cash they cant give you earnings they cant give you real money and thats really important to you know well continue looking at the story Going Forward but in terms of like the grocery business thats a great cash Business People go in there and get cash for real goods and commodities that they need to eat to sustain themselves so i want to you know tell the people an interesting point i heard this week from an Investment Adviser i know and they were looking at the grocery sector as a whole all the huge supermarket chains that you could think of in the United States listed on the stock market they have already reaped achieved their profit hopes for the entirety of 2020 by march 15th so that can suggest a whole bunch of Different Things either that every american has 9 months worth of supply that they have bought so because if youve already achieved in the 1st quarter that means all the next 3 quarters theyve already bought all the food that they were ever going to buy you know humans cant eat more calories than they are designed to eat you know you eat 2000 calories a day its not a youre going to like suddenly 6000. 00 calories a day so either everybody has bought 9 month supply gallaghers have bought loews a supply and theyre selling it reselling it on amazon or e. Bay it could mean like a few of those people who fled manhattan to live out in the hamptons turning this that theyve bought 6 years supply or 5 years supply each. You know or it could be of course theres a law. Out of high margin products in the supermarket shelves like all the packaged foods beer wine all that sort of stuff that people are just buying whatever so there will be some winners in this chaos those who are able to deliver food in a way that makes sense in a pandemic are going to generate a lot of revenue so the 2020 revenue goal were met already in the 1st quarter 2020 for a lot of these a Grocery Stores i think amazon obviously they had to hire 100000 people to kit to to pick up the demand in their warehouses so it be it the distortions in the. Way that the economy in the stock market is buckling and doing all kinds of you know some are going to be some winners and some losers just as you could see from the Great Depression you also had a very similar thing which was the Cereal CompaniesEverybody Knows kelloggs cereal that survived the Great Depression because it had cash on hand that it was willing to spend on advertising everybody you know is a snap crackle pop Rice Krispies well that advertisement went out across radio stations across america in 1933 that was when they took over they were became the only big Cereal Company left and the out there caught that their competitor nobody remembers their name at the moment but it just they disappeared because they retreated they pulled back they didnt have the cash they were unwilling to spend the money on advertising but you know in terms of whats happening in the world one thing i want to point out in terms of the structure of our economy and the Financial System is that generations e who are between the ages of 4 and 24 at the moment they might have a really Good Opportunity not only for you know really low stock prices is like buying in 1033. 00 or 9034. 00 and the structure of the economy is obviously going to have to change the crisis in america is a crisis because its quite clear they were lying to us or were keeping quiet or not really warning everybody. Not only because like senator richard burr here from from North Carolina had to sell and dump his stocks 1st but what you saw is that america doesnt make any crucial vital Manufacturing Products like all the medical supplies so we dont have any of those so all of the manufacturing is so much money factoring is going to have to return and that could be better for the next generation josh hawley who is a senator from missouri maybe his congressperson but he said to any multinational corporations that come to Congress Asking for taxpayer money you better come prepared to explain how you move supply chains and jobs back to america if you want my vote yeah any major crisis depression world war theres a group of folks that rises to the occasion and they define that generation you know one a great novel that came out during world war 2 was Joseph Heller catch 22 which showed the insanity of war and how some people within that situation were profiteering and doing great and making tons of money you know this isnt one of those situations where its a catch 22 except it might be catch 23 anyway were going to take a break and when we come back whats more coming your way. To what weve got to do is identify the threats that we have its crazy confrontation let it be an arms race in this on off and spearing Dramatic Development only really im going to lose east i dont see how that strategy will be successful and very critical time to sit down and talk. You know when im going to get there so i dont think about it i dont mean a distant room in knocking and or for. I kind of but i wonder. If they now want and its higher than our. Members of the african mafia has grown ways them safe and quick passage to europe but once they. Leave they count speech util. Will not some of them maybe a mom and i couldnt you know if this unit can get out if. Somebody. From the chain quit. They sold the. Lease its all gone court of the united. Because the persona that a kid even thought all. Go. A little bit messed up by our d. N. A. In some way over. Im not sure this is such a great thing you know im sure you look better now than when you have. Well its nice of you to say so but i went when i was 25 and wasnt so great. Welcome back to the fort im max keyser time now to turn to Alistair Macleod of gold money dot com and as always i should mention that i am an investor in gold money i also want them back to the program max already lets talk about some important things here the u. S. Dollar has absolutely soared over the past 2 weeks some major economy currencies like the british pound or the Australian Dollar are down double digits against the dollar whats going on alistair well the instinct i think is just is to rush towards the dollar in times of trouble. That if you like is the up to the full the full the full will be when the foreign as who already weve said this before on your show around about 25. 00 trillion dollars the problem is that they lack a quiddity theyve got the dollars they need to raise the liquidity out of their existing dollars which they will do by selling us. Assets in the full d mo Portfolio Investments and us treasuries and so on so full so there will be off to this a liquidation wave of the dollar right lets talk about oil and how that relates to the some have suggested that the crash of oil prices has led to a dollar shortage if thats what you do you agree with this can you walk us through the relationship between oil price the oil d price crass and the dollar if any ouster well the Oil Price Crash has certainly been engineer it to an extent i think by russia deciding to withdraw from any cooperation with opec saudi arabia which needs the money i had no excuse no alternative but to follow as far as the effect on the dollar itself is consent i mean you know you. Sort of play around with numbers about how you know sort of the value of oil imports will fall actually i think youre in if youre actually selfsufficient in oil no i dont see theres any real connection between whats happening in the dollar and oil oil is the separatists you but nonetheless important because it will have a lock on effect on the whole of the shoah business and consequently i suspect that there will be major bankruptcies in the last area some people say that this is a deliberate act on. The possibly russia i dont know i think probably less reading too much into it as far as the dollar itself is concerned i think there are bigger forces at play and those are to do with payments payments through the support through all the supply trades if you look at the total value of all the transactions that go up to make g. D. P. Thats in capsulated and something who grows it now that truly does capture all in numbers gross output is around about 38. 00 trillion dollars in america so what is happening is happening in that sort of number its a very very big deal you are right yes just to preclear for the audience than the saudi arabia started this kerfuffle in the oil paths and theyre highly indebted and they kind of poke the russian bear and of course russia doesnt have any National Debt and is buying all my thousands of tons. Keep in my mind now presumably the 3 major bubbles and crashes weve seen in the past 20 years are a sign instability and for gelati of the fee at system and youve been writing recently that you see the end of the fi out era so talk about that alistair yes we have come up with really a real real crisis and they see a template for this is an interesting. None of that was john roll 300 years ago france mississippi bubble at the tail end of 7019 he was trying desperately to puff up the mississippi bubble before backing it with a bone cryo which that state was effectively the French Central Bank now he had control over the printing of money off that bank and he he puffed up the share price by printing money the currency started to fail 1st and then the major failed and when the measure failed by september 17th 20 there was meant to be some value in the share price like it had fallen from a bus 11000. 00 libra down to around about 2000 lever but tellingly the value of the libra itself in the foreign exchanges was a 0 there was no exchange for it so in other words the whole thing got wiped out all that model in less than a year a