The i. M. F. Is like bailing out half the world over there i made a good job themselves of it because theyve become somebody in this world you know the i. M. F. From from being almost completely marginalized and worthless well back about 100 years ago we had this notion of communism and socialism and the workers would gain all the power and the workers would gain all the wealth but now weve discovered that nobody actually has to work theres no work anymore and we find out when everybodys quarantined because nothings being made right there is and still like the economy their stock markets are floating up higher and higher and everything seems ok right now but now everybody has discovered the magic of the Printing Press and this is the danger of here its like well they could just print out money like what was all that stuff about with greece why were they forcing austerity on them when apparently they have a trillion dollars like how does the i. M. F. Which cant produce wealth right they dont have any land mass they dont have any workers how do they produce wealth how do they get a trillion dollars fire power well allegedly largest percent about 1718 percent is from the United States which has busy like printing trillions for bankers why did they put the greece through austerity if we know we knew then and we certainly know now that they can print up trillions and trillions of dollars on a whim you know why did they forests ireland to restructure their economy in the way that they did. Why dont they allow 4 countries a lot america and mexico in brazil to have a more free flowing. Experience with their economy another so in other words theyre using money i think the answer is theyre using money as a political weapon and also the moral hazard because remember in 1908 the fed and the treasury worked together to bail out one Hedge Fund LongTerm Capital Management and the you know 6 or 7 banks that they owed a lot of money to if they went under and then of course when the dot com crash happened they were incentivized to intervene more but that was Silicon Valley they dont care so much about all the people in Silicon Valley and the normal job at the donuts participated in that huge dotcom boom and they didnt care that they lost all their money but then 2008 came and all the banks were going to collapse because of all their dodgy fraudulent derivatives that they wrote up because they knew that they would get bailed out because theyve seen it already with Long Term Capital Management that your derivatives bets go bad the fed will bell you out and sure enough they did but here now well see this the scale is now like everybodys joined in that are outside those banks the private equity hedge funds because 2020 is not 2008 Central Bank Interventions to stop the Capital Market crisis are far larger than those to meet the banking crisis of 2008 here you can see 2020 versus 2000 a looks very different we were broadcasting in 2008 and during that period and what we said was i mean to have to go for the cigarette ok barack obama was the president and his team which included summers and other guys. They couldve belt out the debtors that would be the mortgage holders and the credit card holders but they chose to bail out the creditors the banks. And with that bell which they said was going to be roughly 3 quarters of a trillion dollars which became 16 or 17 trillion more expensive than that then had they bailed out if they paid out every mortgage in america and every credit card in america and we said look the problem here is that all youre doing is youre expanding the credit line of these corrupt bankers to do the exact same thing but 10 times worse and probably within 1011 or 12 years theyre going to blow up again and that was in 20089 we set ok so here we are 2020 and what were saying is that people are really remarking that 2020 is a mirror image of 2008 its the exact same problem banks over levered blew themselves up and are now demanding a bailout at the point of a gun from the fed and other such will banks and except this time the dislocation in the economy combined with the coronavirus is so great that weve tripped over into medieval ism thats so messed up this is where its neo feudalism thats all screwed up this is exactly but you know this constant more hazard the fed bailing out people and theyve become obvious like the wizard of oz the curtain has been pulled back and everybody could see that they could just print money for whoever they want so there is a sort of sense like this whole notion of ever returning to normal is like when you make the people forget that they know you could just print out as much money as you want if you have the will and the desire to help that particular group the u. S. Government is crafting a plan to pay shale drillers to keep oil in the ground to support prices and jobs a lot of long held concepts are getting turned on their heads these days the latest the idea that low oil prices are a net good friend for the u. S. She was referring to a tweet that u. S. Ways Oil Output Cut by paying drillers not to produce of course this bailing out the actual drillers and the. Acar dudes out in the fields of north dakota and texas and oklahoma but its also bailing out in particular was free and all those c. L. O. Is a squatter lives alone obligations and the whole junk bond market that is the fracking industry just so sad if you look at countries like japan they have an industrial policy the government subsidizes manufacturing and they become world beating manufacturers and they send over their electronic stuff and their stoneys and their cars and they their economy grew right then have china theyve got a an industrial policy the government subsidizes manufacturing and they make sure that their currency doesnt get too high so that they can keep exporting their way to become the biggest economy in the world ok now we come to america they havent policy know they have a kleptocracy based on banking and the tragedy is that instead of subsidizing fracking which we as weve pointed out now for 10 years its a cash negative business from day one and never ever ever ever makes money its a loser from day one they couldve had an industrial policy and they could have said you know were going to subsidize alternative energy solar wind in hydro to become Energy Independent in the world and that by now thats would have been the state of affair and by the way creates 5101520 1000000 high paying jobs but you know america is run by the worst possible people you can imagine its a caca stock r. C. Well i just dont think you can have an industrial policy and Monetary Policy in a few system like this because theyre at odds we have a financial i system and. You know what does private equity do they target companies with any cash on the Balance Sheet and any pensions on the Balance Sheet because they will attack it wipe it out need it just like a locust thats their model they dont go after like in debt. Companies they go after companies that are robust because thats the only you know if youre a predator you dont want to scrawny little mound nourish thing you want something thats right for it just like tearing apart and eating it and then lets look at our Agricultural Policy again this headline really puts you back into this sort of Great Depression days a says something we havent seen that since the Great Depression dont milk smashed eggs and plowed vegetables coronavirus pandemic leaves staggering amounts of food waste 3700000 gallons of milk each day are being dumped a single chicken processor smashing 750000. 00 unhatched eggs every week and go into a supermarket and finding eggs for example you cant but because 3 months later we still are not for all the talk we cant like we cant rejigger the entire supply chain we dont have the ability partly because of all the regulations but we just apparently because we cant make the things like new egg carton so the eggs are being dumped because these these actual distributors manufacturers there are distributing to hotels and restaurants and stuff like that big consumers so dont have like a 12. Egg package so to get make this 12 packages theyre probably a suit presumably made in china so to get them all i changed in imported and they kissed impossible to do so and so were just dumping it in the meantime you see thousands and thousands and thousands of people lining up in cars all over the United States for you know food pantries we dont have a policy we have a faberge a policy. I mean the problem with having like david geffen on is 3100000000. 00 yacht floating around inquired and taking selfies of him so for those drone and having a flotilla of choppers come in and out its not that hes a rich guy and its the problem is that he got his wealth through this money printing system right he hasnt been productive in 1015 years theres just been money printing and hes willing to pay 50000. 00 for a dozen eggs and it doesnt mean anything to him theyre all faberge eggs to david geffen but on the supply china all that means that if you can get eggs youre going to be paying quadruple what you were last year and a lot of people wont get any eggs at all its called inflation stagflation coming right so. Oh well i guess the sign to take a break and when we come back were going to crack some more eggs and open your mind. This is a story about what happens auster a stray bullet kills a young girl in the streets. What happens to her family and daughters in florida know the mother daughter is buried in a cemetery it is healing messes with your head what happens to the community the public was screaming for a scapegoat the Police Needed a scapegoat so why not choose a 19 year old black kid with a criminal record who better to pin this on than him and what happens in court be. Shot after shot as far as society we feel. We dont know still just screwed on. The end of this trial unfortunately you too will still not know what childress. Welcome back to the kaiser report imax guys are time i have to go to someone who can help make sense of the oil sector for us jasc rami is the cofounder of gold money admin day to companies in which we are invested is also former Goldman Sachs commodities economist josh welcome back i know x. And stacy good to be good to be back all righty joshua last year we saw in negative Interest Rates thats a positive that time had no value this year weve seen negative prices on some Oil Contracts and so does i mean energy and matter have no value anymore just certainly Interesting Times so i think the most the thing thats important to understand about an Oil Oil Price or any commodity price the differentiates it quite quite a bit from say a stock price or even up on price is that the price of a commodity is actually a curve because you need to produce and consume or produce a transport and store commodity before you can consume it typically people buy a contract in the future for delivery so when we see the headline price as being negative for us specifically types of crude products its because the very near you know the very near dated future the most the nearest delivery is actually negative be because we have no place to store the commodity so it doesnt mean that we have free your cheap oil because in fact your gasoline prices in some ways could end up going up because of whats happening in supply chain so we can brit we can dive into all of that but its important to understand 1st and foremost that a commodity price is very different than a than a price of stocks and bonds futures trading i think it dates back a few 100 years to japan for rice farmers you know they get figured out this way that they could lock in a price for their rice in the future. By selling off the potential appreciation to a speculator today and thats carried forward all the way its its today and it relates to commodities and commodity savate definite cost weve got a fine and weve got a growing youve got to transport them its not like a stock or a financial future the way you could just add zeros indefinitely as the Federal Reserve bank is doing now what about the Federal Reserve bank and their kind of quantitative easing and this idea that they can buy every asset under the sun to prop up markets is that going to extend to the energy do you think if Energy Prices got down low enough that you could say Central Banks start to hoard oil as a way to to prop up that sector josh yeah you know its a great question and its actually why weve got here indirectly so what that again but the whole futures curve the price of oil going up in the future is now not necessarily free right because people still have to have to produce oil in the future big to be able to get it you know good to us in time so whats happening is the price is collapsing in the near term because its the price signal is telling us we have to shut in Oil Production we have to stop producing it because we cant consume anywhere while demand has fallen anywhere between 20 and 30 percent globally for short term short or more oil so the problem is when you have Central Banks getting involved d in these markets and typically they get in via the credit markets is they artificially try to lower the price of of debt or credit for the economy to try to some stimulate demand so while they did this for almost a decade coming out of the last financial crisis you particularly the u. S. You had shale drillers just going crazy with with tippit taking cheap debt to taking cheap capital and over producing and over and over drilling in oil and gas. So this is actually a revenge of what Central Banks had done previously because we need to actually break and bankrupt this economy this oil economy to try to stop trying to slow down the supply and so this is the problem is alternately in the physical Economy Economic gravity always comes back come back comes back into play you cant you cant just you know print new Storage Capacity for oil would be very very difficult for central bankers try to correct their previous mistakes through their monetary policies so what youre describing there sounds like oil vigilante and what i mean by this is we used to have a thing called the bond vigilantes and we heard about it during the clinton years and if the banks are printing so much money it with signal inflation and the bond market was sell off dramatically but sent Central Banks then started buying bonds through quantitative easing we no longer have that Market Segment it gave them Carte Blanche to print trillions and throw 2 price signals out of whack all over the market even down to the level of the commodity market the oil market and ive got negative rates on oil futures at the moment which is clearly a distortion of the market brought to you by era sponsible central banking and what youre saying there is that there is a wall that will be hit with that kind of market manipulation and am i correct in saying that this is the revenge you could characterize it as oil vigilantes just you know i like that i hadnt heard that term youre very good at coining these these new terms for the market and thats exactly whats right it really thats exactly whats happening is is that you know Market Participants are shorting or oil spreads the difference between the may and the june contract is because people know that the expiring may contract nobody wants it nobody wants to take that oil and store it somewhere. So theyre all over it vigilantes are shorting that spread there theyre selling main theyre buying theyre buying june right and so and so yes that this would be very similar to a bond vigilante commodities as you point out its very different than financial flows ation Financial Products because there is a brick wall called Reality Earth only has so much on the ground theres. This thing called physics that has to be a encountered and taken into consideration and lot has come out is trade in relation to each other so we know that for years people have looked at oil and gold and theyve said you know what. Oil and all the usually theres like 20 or 30 barrels of oil so an ounce of gold i just looked at the numbers recently that something amazing like 100. 00 barrels of oil actually more because the price of oil is dropping around the Single Digits approaching even a dollar so you could say its over a 1000 you know barrels of oil so an ounce of gold what does this tell us if anything josh this is actually incredibly important signal im glad you brought that up ive been trying to tweet about this and talk about this a lot because Central Banks of have got in and distorted the market so significantly right now right now in equity markets you have basically year over year prices and equities are flat which is absolutely incredible as were approaching 20 percent unemployment again probably 2030 percent drop in in in demand for things like oil and yet equities are flat year over year and of course we were increasingly have more and more currency volatility as well so its important to actually use something that gets in the real economy as as a signal so i look at the gold to oil ratio particular not from month price again not a whole oil curve but the but the near stated futures contract we can actually look at that oil to gold ratio going back you know hundreds of years and so even if and basically that. Regardless of the monetary regime. Regardless of the political regime weve seen that essentially oil prices have traded between usually between 10. 20. Barrels per ounce for and that was true in the 1920