welcome to crash concepts where the. . economy energy and the environment are. . explored up next fresh ideas and. . insights into the factors that are. . driving the world at shaping your future. . presenting information you can't afford. . to live without here's Chris Martenson. . Dave column thank you so much for being. . back with us and all our listeners here. . today hey it's great to be here this is. . uh this is a tradition I look forward to. . immensely hold me to and hey I'm just. . wondering based on something you wrote. . in this year's review do we need to. . start with a trigger warning here for. . any listeners maybe remind them that. . their computer has an off button if they. . choose well you know I can keep it clean. . on a podcast so so it's up to them I. . mean if you take me in a direction that. . that that I am or someone is as I. . actually said in the review and said you. . know this is about humor and humor and. . sarcasm someone's got to get hurt it. . might be your turn well you know what. . caught me right up front in part one is. . um because this comes in two parts of. . course was the Limerick king who you. . know we follow each other on Twitter. . really like the guy and he started with. . there was a med chemist named Dave his. . year-in-review is the rave with Epstein. . and Powell in repose most foul his. . comments are sure to be grave that's a. . good yeah i solicit those i so i asked i. . asked oh i tell a limerick king what i'm. . going to talk about you know what's in. . it and I said just whip out a limerick. . for me and then I most years I have Jeff. . Mackey of CNBC Fame without some art but. . as his life is remarkably fallen so I. . actually had my wife do that so I intend. . to open with a cup with a limerick in a. . Mackey original but you got a Candice. . eCornell original is done fantastic you. . know as I was reading through this it. . really feels like this Year in Review. . has a very different flavor from the. . prior ones and I'm wondering if you'd be. . willing to talk about that yeah you know. . it's it's when I write this thing it's. . so I go real deep lizard brain on this. . and as I actually spend more time at the. . opening describing where it comes from. . and how I write it I actually give an. . autobiography so there's always an about. . the author part but I go deeper I go. . back to when I was 12 years old it's. . only a page so you know it's it is funny. . and and but but I kind of explained. . myself part because of the feel that it. . was different so this year I wrote it. . and I wrote it in order of importance. . and so I picked the section I thought. . was most important when I had to write. . then I pick the second one in the third. . one when I got to the end and you know. . you can't write a year in review in May. . right and so so I have to write it all. . at once and I bang out I think this. . one's a hundred and forty-seven pages. . right and so this is you know I'm kind. . of rewriting at this rate of way about. . Buckley at this point um and uh and I. . got to the end and I looked at and I go. . holy cow the entire thing is about. . social change. . and one things it's omitted and I don't. . even know if people be disappointed or. . happy but there's there's not much. . finance actually and the one of the. . reasons is because it feels like we're. . at the top of something and it feels. . like we're on the cusp of something and. . and even if we're not I mean it's just. . getting crazier and to document it yeah. . to document getting crazier just somehow. . didn't make sense to me this year so you. . know there were stupid IPOs and dumb. . debt and all sorts of stuff that's been. . getting crazier and crazier. . at some point yourself to say okay look. . this is the pre-game I'm not going to. . pay attention till the game starts and. . so I've got reams of notes and I sorted. . them and then I just I said look I'm not. . going to write about this stuff this. . year or I just didn't get to it as as my. . priority I don't write about Trump. . because everyone on the planet is. . writing about Trump and impeachments and. . stuff like that so so I went through the. . things that I'd spent a lot of time so. . the thing that the absolutely you know. . passed like a kidney stone for me was um. . was literally 32 pages on climate change. . the second part I wrote was an Epstein. . which I think is far more profound. . then then people are giving it credit. . and and then I go back to share buybacks. . because people are still missing them. . that's kind of financing but my. . conclusion goes very dark because I and. . part of its unsupported in the sense. . that I go dark in ways you go would you. . didn't write about that I go yeah but. . it's on the cutting room floor and a bug. . the crap out of me and so and so uh I. . think we're heading for a strange future. . here and so as you mentioned in our. . pregame discussion that's kind of a. . fourth turning field to me mm-hmm and. . and this is the the what I really want. . to focus on because this has been well. . central in my thoughts and heart as well. . is that I listen bubbles always get. . crazy towards the end right you know and. . there are those like I have this bad. . habit of detecting bubbles really early. . and missing out on a lot of the fun you. . know and because I'm more of a. . fundamentalist and it always amazes me. . that how much longer they can go on then. . seems normal. . right so the housing bubble I was. . shorting very painfully I was in stocks. . in 2007 it took a while before they you. . know turned around in mortgage insurers. . and all that but even here this is this. . is this is like this is the third bubble. . in a row but it's more extreme it's. . everywhere and they're they're doing. . whatever it takes to keep it going and. . all of that and despite all of their. . best efforts and printing these these. . happy-happy stock prices with the help. . of some Trump tweets always well-timed. . you get that sense that there's. . something really dark lurking here as. . well and that people are as unhappy and. . is anxious and is fearful and as. . polarized as they've ever been and so. . that to me is is the potential energy in. . this story like two great static. . electricity sources one positive one. . negative just sort of building hey look. . how great everything is but things. . aren't great do you feel that that I. . mean you seem to be writing about that. . gap and I'm wondering why you think. . that's there at all. . well um god that's so many layers to an. . onion there I happen to just this. . morning catch of a quick video of Adam. . Schiff getting yelled at by guys in the. . audience yes I was wrong all the liars. . oh right and these were not you. . no hipsters from Harvard right these. . were these were salted the earth type. . guys to put it bluntly but but but. . that's a tactic that used to be let's. . say used to be like a year ago or even. . six months ago was a tactic in my. . opinion you're gonna I'm going to upset. . some listeners it was a tactic of the. . left right disrupt the speaker you know. . interrupt people at dinner you know. . stuff like that I don't think the right. . was doing that and and I've been. . watching for it and I'm sure that other. . people see it I don't but but now you. . see that and I we don't want to see that. . either at some level right I really hate. . chef I mean I really hate ship but but. . that when when that stuff starts. . happening that's a bad sign even if he's. . deserving right that's a very bad time. . mm-hmm and what does that a sign of do. . you think why don't assign the people. . are angry right and it's a sign that. . that wall to sign the time politics has. . gotten completely toxic I was what I'd. . call Trump tolerant so I started with a. . shaky hand pulled the lever for the. . Donald in part because he his platform. . was don't bomb the hell out of other. . countries it's why I support Tulsi. . Gabbard don't bomb the hell out of other. . countries and Trump has kind of been. . wavering on that I think he's battling. . you know the deep state to try not to. . bomb other countries too much right that. . sort of thing so I think in some sense. . he's achieving what he set out to do in. . that is I think he's minimizing it but. . there's a bad stuff right now you know. . you watch the warned Yemen and it's just. . a mess um the further along I've got the. . more I see him and this is just going to. . freak out some your listeners but I see. . him as kind of as odd hero figure. . battling some very bad people and in any. . section unlikely package he's like. . Colombo is to law enforcement or. . something but III don't you Trump is the. . evil person he's got his idiosyncrasies. . he's got his flaws he's got everything. . that that I I understand why people hate. . him but the people he's battling I. . really find to be much more dangerous. . well it's I think um you know the time. . you write about this ironically. . don't write about this because it's a. . pandemonium out there I know I know and. . it's it's we're really deep into the. . belief territory you can tell because. . the emotions are so high and of course. . facts and opinions don't really play. . well in that landscape that of course I. . think has also been whipped up by the. . media which is doing I think just when I. . look at it from a PSYOP psych 101 like. . what they're doing to me seems really. . obviously designed to fracture and. . polarize people and so what's. . interesting is you know you see the. . people show up with their pink hats and. . you see and Tifa out there like you know. . beating people up on the street it's. . sort of the you know the retail level. . but you know what I haven't seen Dave. . not once I haven't seen one organized. . protest against health care costs and. . the fact that my premiums went up 22. . percent this year in healthcare CEOs are. . raking in 10 20 30 40 50 60 70 million. . dollars each on a yearly basis just for. . the CEO add up the whole c-suite who. . goes what the numbers are right it's. . it's obscene it's perverse and if the. . media chose they I think they could whip. . up some righteous indignation over that. . travesty and racket but they don't and. . it feels from now it feels rather. . coordinated to me on that front yeah. . well I view the media somewhere on the. . edge of treasonous um in many many ways. . yeah I think that they're I think. . they're part of of a and insidious I. . don't want people lying to me from. . either side right I'd there there's very. . few journalists that just seem to try to. . get it right I've become a super Tucker. . Carlson fan he again is a flawed. . character in many ways but I've seen him. . go at sacred cows on both teams and I. . used to hate him so so somehow people. . think this is just some some doctrine. . that I'm following you know some. . right-wing thing that just follows me. . everywhere I go I hated Carlson before. . and so it was a real conversion for me. . and uh but I I think the guy's amazing. . in many ways and so he's won a few guys. . well you can't predict which way he's. . going to go until he goes there I like. . that then there's things like that you. . know the Fed is so unmoored there's just. . so many things out there that are. . unmoored the digital world is taking us. . to this digital gulag in my opinion it's. . I don't think I'm being hyperbolic I. . think I think I think we're heading for. . very very bad places and it's not any. . one thing right it's of course it's too. . much debt and it's it's you know. . ridiculous Fed policies but is well. . lurking away on the other side is in. . fact you know 80 percent of the insects. . are gone and we don't know what's. . happening to all the fish in the ocean. . but they seem to be getting you know. . destroyed and and on and on and on so I. . have this theory that humans is an. . organism where we are evolutionarily. . designed to be reactive and sensitive to. . our environments which makes a lot of. . sense particularly for an adaptive. . species like ours you got to know when. . it's time to go to the next Valley if. . you've sort of played this one out and. . we don't have there's nowhere to go. . there's no next Valley and we're sort of. . playing this one out and we don't really. . have a plan for that except more more. . more more more of the same which has. . gotten us to where we are so I think. . that's at least part of the anxiety. . people are feeling is this sense that. . maybe we're not all going to go to Mars. . after all and you know that's also. . applies to the American Empire a lot of. . people somehow think you know American. . exceptionalism which by the way was a. . Stalin term American exceptionalism we. . build an empire but we had what at the. . time was unlimited capacity to move west. . and so we had strong immigration. . programs because we could populate any. . amount of territory and not run out and. . now we've hit California right and now. . you look at California it's like a. . tsunami of craziness building up in. . California right and we're piled up out. . there. . they're doing insane stuff in California. . my opinion politically and and socially. . and and and and we are at we are now at. . the boundary of our expansion now again. . we still have a lot of acreage per. . capita compared to a lot of countries. . and stuff like that but um but we're. . also the system veronik right socialism. . has totally invaded our thinking right. . we've got an entire generation of. . younger adults who think socialism sign. . right. . i I understand where it came from but I. . also understand that that it is a system. . that has failed without fail right miss. . failed every time well let me put my. . view in which is I think we were already. . running socialism it's just socialism. . for the 0.1% that's all right but but. . but then but so the 2020 elections is. . going to be you know now that's my turn. . right the doom that we that I wrote a. . lot about modern monetary theory yeah. . because it's gonna be about now you're. . gonna print money for us and and I. . understand their anxiety I've written. . hastily about bankers and central. . bankers and corruption but the problem. . is I go but that's going to cause more. . trouble not less that's a problem but. . I'm sympathetic to it I agree that it's. . gonna cause trouble but I'm sympathetic. . to it because yeah young person you say. . well gosh you've been printing up money. . and handing it out to Jamie Dimon why. . not us you know let's just put the fire. . hose this way instead of that way it's. . our turn III get it right and it's gonna. . totally get it it's gonna oh well yeah. . it'll sell brilliantly it'll sell. . brilliantly because it because there's. . truth right. . you know if Lizabeth warned by the way. . it stayed on let's get the bankers he'd. . be the front-runner mm-hmm right yep but. . so no I agree with that now before we go. . too much further I gotta return to the. . title which is his year's Year in Review. . is Epstein didn't kill himself which I. . am so enjoying the memes like like so. . this really broke through I think this. . was a seminal thing because it broke. . through into the larger consciousness so. . I go to all these social media sites. . like Reddit and they're usually highly. . allergic in a very corporatized way to. . conspiracy theories so if you go to like. . the the subreddit for news or world news. . you know they just poopoo and. . immediately shut down anything that. . smells like you know mentioning that you. . know kerosene can't melt steel or. . something like that right so right but. . this one broke through cracked by that. . yeah this one broke through that you now. . find this meme in all these clever ways. . of people of spelling out Epstein didn't. . kill himself you know in public and. . all of that it really broke through. . because it was just completely obvious. . that he didn't kill himself right grande. . totally I'm impossible and almost right. . yeah to the nearest integer zero yeah so. . you know my my PhD to do the little. . background of meets in pathology so I'd. . do autopsies we did some stuff we did. . some forensic pathology I can tell you. . that to break those three hyoid bones. . you know I went out and looked online. . looked at all of all of the you know. . case reviews of that let let me put it. . this way if the police showed up in your. . wife was found with three broken bones. . in her neck you're going to jail for. . strangulation because 99.9% chance. . that's what happened you know it's just. . it's just such a signature injury for. . strangulation not a slump hanging off of. . a bedpost it's just completely obvious. . there is no bedpost in that cell there's. . nothing to hang yourself from and that's. . all I've read all about the various. . aspects of those you know safety cells. . and there's no posters no rails there's. . nothing there's your sheets tear your. . clothes tear you cannot kill yourself in. . one of those cells there's no doorknob. . there's no nothing huh so take us. . through it. . you know Elsa so here's the death let me. . tell me so so so everything's wrong with. . the obscene story right I don't know. . where I when I write about it I it was. . this the second topic I wrote about and. . that's the hierarchical column way and. . and and there's the obvious stuff that I. . think most people know there's a bunch. . of pervs some people know that you know. . Epstein was hired by Bill Maher's father. . bill birnes father has intelligence. . connections right but people don't know. . that. . Epstein suppose he went to Wall Street. . and with no bachelor's degree made a. . billion dollars and so you go yeah of. . course that's pretty easy to do right no. . one on Wall Street knows him right no. . one knew him no one could say there's. . actually wasn't like Madoff they knew. . Madoff right but where does Epstein in a. . billion dollars well it turns out he had. . one client Leslie Wexner and Wexner has. . always Intel. . hodgins ties and so as we as you know I. . know there's this woman named Whitney. . Webb who kind of pulled it all together. . where it turns out Epstein was it's been. . an asset for intelligence possibly. . multiple intelligence agencies for first. . entire adult life and and he is you know. . it is only Maxwell who i tastelessly. . nicknamed jizz she her father was Robert. . Maxwell one of the most famous Israeli. . spies of all time right and and he fell. . off a yacht and died right in the middle. . of something that wasn't very tasteful. . and and so so so it turns out that the. . web does this great job of connecting. . Epstein with with this whole idea of the. . honey trap the whole idea of of. . compromising politicians and. . compromising people of power but but. . then what you do and this is where. . Michael Krieger said something to me. . that made really sense is that you don't. . blackmail them per se you just give them. . more power and so that you you. . compromise them but then you pull them. . into your fold and then use and by the. . way we're going to elevate you we're. . going to help you here we're going to. . help you there and senator senator so so. . where this all connects is that it turns. . out that the Mossad has a huge number of. . former Mossad agents popular popular in. . Silicon Valley it appears to me that. . Israel's remarkable tech industry which. . they're it's not well known there is. . knows a great package that's probably. . sort of a hundred percent intelligence. . probably a hundred percent you know. . national security and and and so there. . subroutines being wedged into various. . programs stuff like that but hey who'd. . Barack is amazingly prominent in in. . Silicon Valley and so this whole story. . is a story about this this web of. . international intrigue after EPSA gets. . convicted of pedophilia his his his his. . uh his exceedingly prominent of. . associates like like Prince Andrew and. . Barbara Walters and Stephanopoulos all. . these people Charlie Rose they don't. . to sodam right I mean if you were a. . public figure never seen guy convicted. . to pedophilia. . you're saying to him hey Jeff sorry I. . can't be seen with you now right you're. . you're toxic and and he was not and they. . sealed up all the cases how do you do. . that so so every one of these stories. . where every single shred makes no sense. . I'm going to disagree with one thing. . that you said that is and I get today I. . don't think he's dead hmm I think he's. . in witness protection because I don't. . think you could kill him it's real. . simple right if he's been collecting. . dirt on powerful people and not getting. . assassinated himself which means. . therefore he wasn't threatening them. . with it right you could killed if you're. . threatening people with it and and so. . he's got all the certain and he's. . sitting in a Cell he's going to say look. . get me out of here alive or I release. . the hounds right that's how Daniel. . Ellsberg released the Pentagon Papers. . that's what you do is call the suicide. . switch and the guy has been doing this. . for 40 years knows what a suicide. . switches and so so if you wanted to off. . Epstein you couldn't do it because you. . trigger a wave of flying across the. . globe mmm so you have to protect them. . fact the most dangerous thing for them. . would be if Epstein got whacked by. . someone who wanted that release to occur. . that would be the risky thing and so I. . think that I think they staged the whole. . the whole thing the hyoid bone just. . keeps us chattering with they're happy. . to have us sing someone off them right. . when we throw it on the Clinton. . body-count laugh about it right. . that's nothing they don't care about. . that they don't care about of offing. . Epstein in a Cell they care about a. . revealing on this massive web of. . connectivity that it goes to the church. . goes to the Beltway goes to Silicon. . Valley goes to Israel goes to everywhere. . this is a web of people of power and. . influence and its massive and I think. . it's the biggest scandal in history and. . they are furiously trying to put it away. . even Prince Andrews interview disaster. . makes no sense that was such a disaster. . I don't sweat what was that I don't even. . understand what I think I think he had. . he. . take one for the team but I don't know. . how that fits into the plot there's not. . that there's no logic in it so until you. . can see logic and doing that interview. . you you don't understand well here's how. . I know just how dirty this whole thing. . is it wasn't until I think two months. . after he had allegedly killed himself. . for a month after that the FBI finally. . viz raided his Island you know which was. . just sitting there for the whole world. . to know about like right and that they. . as far as I know they still haven't gone. . to his New Mexico ranch right so you. . know in what world when you are you know. . you have child porn all over the place. . and by the way thank you media for. . making me so mad at you again because. . the media was always with this underaged. . women thing yeah we have another name. . for that you know child rape kit kids. . right underage women God in PR did that. . you're an adult petting zoo is what I. . call it love I love this slide I put in. . the time where he said you know I have. . to make fun of it kisses so sad but I. . said I have the bed I said boskie plane. . de plane and then the Ricardo Montalban. . guy responds yes unshackle the girls it. . and then there's their stuff like how do. . you how do you seal up a civil case in. . which the women in the civil case are. . saying this guy raped me I know for a. . fact that that they that the judge in. . that case is by law required to pass. . that to the authorities right and they. . didn't they sealed it and it was you. . know it was this secretary of what was. . was it was across the secretary this is. . a cabinet member would come yeah. . Secretary of Education or something like. . that though labor yeah yeah and then he. . would he retires he says okay I'm out of. . here. . yeah and he had admitted that he sealed. . the case because Epstein was. . intelligence and where's his Elaine. . Maxwell right why isn't she being. . interrogated why isn't gersowitz under. . the hot lamp yeah there's one of the. . women in the in the in the in the in the. . and the transcript said Dershowitz she. . put right into it. . yeah and Bill Clinton or no one's. . counting any of them a hundred other. . people who should all be in and you know. . this with him if this was at your in my. . paygrade down here you know the FBI. . would be having us hauled up and putting. . us down under under oath and taking. . statements right we're gonna go they're. . never gonna do it yeah so so that's why. . I think this is such importance because. . because it now broke into the public. . awareness to the point where people are. . getting oh my gosh there's two sets of. . rules in play here obviously and of. . course we saw you know we always know. . that that justice is a two-tiered system. . but it's now becoming more obvious and. . it's really starting to grate on on. . people more and more right you know and. . so let me point out one thing I'm not. . gonna divulge it and then I don't know. . if you got to that part yet or not but. . um the question then is well then who. . was the dead guy in the gurney and I'm. . gonna make your readers read it okay the. . dead guy in the gurney there there's a. . theory of who he is that's so funny you. . will wet yourself when you read it all. . right I'm gonna go hunt that down soon. . as we're done here because I'm super. . interested in that yet you know I saw I. . did see the pictures of him allegedly. . being wheeled out on the gurney and and. . somehow the nose and the ears don't. . quite line up and all I could yeah well. . there's a guy who whose nose and ears do. . line up and you're just gonna whack. . yourself when you see who that is and he. . died three weeks earlier he died three. . weeks earlier cause unknown oh okay. . well I had to go through this crazy sort. . of thing of like well maybe he died and. . you know fell on his face and his nose. . in his ears got smooshed I I was like I. . couldn't make sense of it cuz they don't. . line up with now the him if that's a. . real picture anyway so all right well. . well speak into this two-tiered thing. . you know you were writing on gold. . manipulation you wrote that quote two. . employees were put on leave while Jamie. . Dimon was not nothing ever happens. . a prosecutor closed a five-year silver. . manipulation case abruptly five days. . later he was in private practice. . defending the very same JPM metals. . manipulators end quote I mean this is. . just it is just so blatantly in your. . face that mean act it's a corrupt. . at this point in time and so you spent. . some time sort of chronicling all of it. . but it's almost too much to keep up with. . at this point really well so that that. . again with in finance I think I'm going. . to return to the financial topics when. . stuff starts happening and when the. . system starts breaking again then then. . it's going to be pandemonium right now. . all I can do is write about things that. . just look wrong and I can write about. . things that look incredibly risky and I. . can write about Howard world record. . awfulness in so many ways but the. . average person looks at therefore one. . can says look I'm up 20 percent this. . year right so I just said look go go. . read last year's it's gotten worse. . that's it yeah yeah it is just getting. . worse and worse and of course some of us. . just sort of bubble dynamics and you. . know I can't figure out when the plug is. . going to get pulled on all this I for. . one think that the Fed is just. . absolutely freaking out I'd like to turn. . now to the whole idea of what's going on. . with this repo madness and and I think. . the best explanation I've heard so far. . just came out recently from Martin. . Armstrong and he said look nobody. . actually really has a clue what's going. . on here right now we just know. . something's not quite right the easiest. . all we needed all you need to know when. . the repo markets blowing out is that the. . four big banks in control of most of it. . aren't interested in lending to other. . parties even overnight. . that means Trust is broken we don't know. . what it is and the cheap seats yet but. . to me the Fed is obviously panicking and. . either lying about it or being ignorant. . about it either way I don't feel. . comfortable with any of that stuff what. . do you think's going on there well I. . wrote a lot about it I listed all the. . theories that I've been able to collect. . over the year and I put out an APB on. . Twitter and I got all sorts of highly. . authoritative answers that vary all the. . way from zero heads conspiracy theory to. . – Hillary – Donald – – Jamie diamond. . shaken down Powell. . they're just a gazillion things I still. . think the best theory and it's the one. . that I opened with and then had everyone. . tell me I was an idiot is that the. . banking system is an emergent system. . which means it basically has a mind of. . its own and it and and once in awhile it. . just goes crazy right it just is it's. . like you know when the fish also wash up. . on shore by the by the hundreds of. . thousands no one knows why that happens. . right and and and so everyone so while. . the banking system just has a coronary. . and I think in this case it's not just. . the banking system it's the shadow. . banking system I think you're right I. . think Powell's terrified and and if he's. . not then he really is an idiot but I I'm. . suspecting he's terrified and they keep. . kind of normalized truly extraordinary. . behavior and so this smacks of the. . tremor right this smacks of a you know. . sort of San Andreas Fault stuff and uh. . and they're trying to furiously put it. . away they're trying to they're trying to. . find a way to calm it down but but you. . know if it's metastable it's just a. . matter of time right and they say the. . banking system stable they say the. . banking system took much better shape. . because of dodd-frank bla bla bla bla. . bla I go okay right now thirty-nine. . percent according to gun lock. . thirty-nine percent of corporate debt is. . chunk now I'm not sure he's saying this. . rated junk but he says his garbage and. . he had to leverage low markets but. . thirty nine percent of corporate debt is. . junk and and when that chunk goes bid. . 'less how's the banking system going to. . be doing well there's that and there's. . all the cuff light and leveraged loans. . which don't give him a lot of attention. . I'm crap I'm it's just super crap it's. . super garbage yep and we had the BIS. . last year come out and say hey not for. . nothing maybe you should pay attention. . but one in eight companies is a zombie. . meaning they can't even write their. . operational cash flows don't even cover. . the interest payments so they have to. . keep tapping that that endless credit. . market you know to to keep the bid going. . and so that's what I think the Fed is. . trying to do here is just make sure that. . the credit markets are always sampling. . supplied but the longer they do that the. . more junk piles up and so we haven't had. . a brushfire and I think we're facing an. . Australian crown fire at this point you. . know if anything does get started and. . they don't want anything to get started. . so everything has to keep going up it's. . just such a ridiculous system why do you. . think the BIS is so honest. . the BIA seems to be the only source of. . of none. . ochio like pronouncements it's a. . fascinating question you then they the. . kind of the bank of bags right there. . they're kind of at the top of the food. . chain they should be in some sense the. . Dark Lord's right but but they come out. . say stuff you go whoa whoa that should. . scare people. . right yeah I agree I agree some of the. . best papers I've read came out of the. . BIS including you know one that they. . said that talked about openly the the. . ways in which banks central banks can. . hide their tracks so that they can more. . effectively manipulate currencies. . because bla bla bla bla using proxy. . agents like they laid the whole thing. . out like you know these are the things. . we've studied that work well and so I'm. . thinking if you know the central bank's. . a decade ago we're using proxy agents. . such as JP Morgan at all to go out and. . manipulate currency markets. . what other markets would you think are. . off-limits to central banks who decide. . that they is a small unelected cabal of. . people know best what the prices of. . stocks on to be gold currencies I mean. . everything I mean I think they feel like. . they're responsible for setting the. . prices of everything without studying. . history and discovering that price. . setting is not usually an optimal way to. . go right it's it's it's the way the. . Soviets try right the Soviets set prices. . right and the Fed thinks they're in. . charge of setting prices. . the Soviets actually were trying to. . cheat because what they were doing is. . setting the price is watching us prices. . and saying okay we'll just we'll just. . covertly just set our potato rates at. . the same as the US then and therefore we. . can kind of fake it and uh and and not. . recognizing that will maybe potatoes in. . Russia are the same price right that. . maybe the supply demand curves different. . so it didn't work right but now you have. . the central bank they think they're in. . charge of climate change they think. . they're in charge of ah they think. . they're in charge of brexit they think. . they're charged then you got that step. . back you wacky wacky bill Dudley memo. . they did he wrote a former head of the. . New York Fed right write some memo right. . to an op-ed in The New York Times saying. . that to the extent that the president's. . risk to the economy it's it's it's the. . feds jurisdiction to worry about his. . president that was extraordinary and and. . then in the Wall Street Journal came out. . wrote this up and said holy cow this. . guy's trying to tell us that the Fed is. . politically independent and then Dudley. . writes that the Wall Street Journal was. . absolutely unambiguous in their shock. . the Dudley would right there and then. . Dudley backed up he says this is not. . about the deep state this is just my. . opinion there's no cabal there's and I'm. . going to dude thou doth protest too much. . right so the questions why did he do it. . why did he do it why did Mark Carney. . talk about the dollar losing reserve. . currency service why did why did Dudley. . talk about about you know throwing the. . president what is going on because they. . don't yeah it's how oddly buttered it on. . stage like jboden. . Dudley edited an op-ed yeah which was. . vetted you sure up and down the street. . and uestion is you you say you're the. . feds job is to make sure we have the. . right president what is stunning our bed. . from a former New York Fed president. . 2018 that's a doddering old fool well. . you might be an old fool but he 2018. . when you step down yeah this is fresh. . stuff ya know it's it's it's clear the. . feds wildly political obviously and. . they've they've you know whatever that. . nose of the camera went under the. . proverbial tent the Fed has been getting. . more and more and more active and. . interventionist and sort of I get the. . sense that they feel like they're in. . charge of everything they're responsible. . for setting all prices and that they. . know what they should be higher usually. . and and they've been absolutely immune. . so I'm on this one-man campaign on. . Twitter to try and you know bash the Fed. . now I know I have a little bit of quite. . a few fellow travelers on a 2-man at. . least right but here's what I mean why. . does not one journalist say mr. Powell. . your policies are directly fostering a. . wealth gap right now five people have as. . much wealth as half the world we're. . wondering where's the line where do you. . stop is it when those five pieces and I. . own a hundred percent I didn't know how. . can they they you're not allowed to deny. . something that's like that's the Ted. . Bundy denying what he was up to you. . can't you know the evidence is there is. . plain as day you you print money and you. . shovel it. . to the markets and it goes you might as. . well wire it directly into the point one. . percents bank accounts right you might. . as well so he's responsible for that and. . why does nobody ask him the most simple. . of questions which is you are playing. . with social fire here you are burning. . people you're a redistributive. . organization you don't create wealth but. . you do print up purchasing power which. . means it came from somewhere where did. . that come from. . Oh everybody else and you handed it to. . who these guys here's what would happen. . you know what would happen first of all. . he would never expose himself to a real. . interrogation right it would all be. . orchestrated if he was ever for example. . giving a speech somewhere and they had a. . you know let's take questions which I. . don't think you would ever do but if. . someone said that he would then give an. . answer that was some canned answer like. . you know we've got lowest unemployment. . the little guys been helped by Fed. . policy you know what they'd say mm-hmm. . right and then you would not get the mic. . back and therefore that would be the. . final word that's the problem you need a. . scenario where he says it and then you. . come back you say no you're full of crap. . for these three reasons please clarify. . and he won't expose himself to that and. . if you were a journalist you ask that. . question of course he would never be. . invited back and you'd be out exactly. . you'd be out that's journalism is the. . problem yeah yeah remember it was Janet. . Yellen who you canned I think it was. . Pedro de Costa just kandan because he. . dared to ask a question about some. . insider junk that was not cool we're an. . outside firm was getting early. . intelligence from the Fed and he tried. . corn or Janet Yellen with that and she. . just turned away from being the kind. . grandmotherly persona into into an Iron. . Lady all of a sudden that was it he was. . out doesn't so I ran a free Pedro. . Twitter campaign that dapsone out of. . that and I set up a free and I kept all. . day long I just venomous tweet free. . Pedro blah blah blah you you skanks you. . know I just a dork I've so mad and then. . and then at night I got an email from. . Pedro and he said you know that was. . really meaningful to me I appreciate you. . doing that and uh and and so but he's. . now not asking fed questions right he. . lost his job he quit I think because he. . got so what happened was after that. . was was was the free Pedro campaign was. . when the next Fed meeting occurred the. . head of the Wall Street Journal the. . other Wall Street Journal walked into. . Pedro's offices you're not going and. . Pedro said why he said you're not going. . and so the the Wall Street Journal got. . told de castas not allowed that's when I. . stood the free Pedro he then set into. . motion I even I think that day to quit I. . think he's at the Peterson Institute or. . something now but he he was so mad you. . know and in any event yeah and and I. . mean he's not even the most militant but. . but but you can't do that right you're. . now challenging the elite power. . structure you're challenging the people. . who the one thing they all agree if they. . all want to be powerful still they want. . to retain their power they want to be. . elite by the way here's here's a thought. . on the UM the retaining elite is I do. . not want to talk about impeachment with. . the exception of one thing if that to me. . the smoking gun in the impeachment trial. . was Sandland was one and the reasons. . that Sandlin de San London in the. . morning gave a speech that basically. . said Trump and all his buddies are all. . guilty as guilty can be if you listen to. . speech I heard it I heard it I was. . driving somewhere I was on a trip or. . something and I heard it I go wow that. . guy just Al Trump and then in the. . afternoon on cross-examination he said I. . don't know anything I didn't hear. . anything I didn't see anything I just. . presumed it the guy was lying that the. . guy was lying either in the morning or. . at night right in the afternoon there's. . no chance that that same person gave. . those two so so if you or CNN person you. . heard him hammer Trump if you were a fox. . person you heard him declare that he. . knows nothing and it was the same guy. . and I'm going how is that possible and. . then I realized here's the smoking gun. . he gave the two sides their talking. . points and so the Democrats could say. . blah blah blah the Republicans could say. . blah blah blah and and and neither. . talking about him committing perjury. . they. . each got their talking points and the. . reasons because they all agree whether. . it's whether it's shift or whether it's. . Jordan they want to be reelected yeah. . and they got their talking points. . there's no way someone's testimony makes. . sense by a normal model I think he gave. . of the two sides with it's like the. . Muller report right the Muller report. . came out and said not guilty then put. . this stuff in and so both sides screamed. . about how how they won mala rapport with. . head it's like you know the classic. . you'll be lucky to get this person to. . work for you line right Mahler handed. . both team something to talk about yeah. . what a travesty that report that was. . though and I mean two and a half years. . generally it was a I think he found. . nothing I think the report generally. . came to the conclusion that there was. . nothing there and now you know there's. . Horowitz report stuff so so so said yeah. . Trump is anti fragile. . every time he they attack him and heat. . they don't bring him down he gets. . stronger so if you're a Trump hater this. . should bother you to no end because he. . is like the guy with the glowing eyes. . and Star Trek right he is getting. . stronger and stronger every time they. . fail to bring him down well I'm just I'm. . a little bit shocked that the so-called. . deep state so you got clapper Brennan. . all those people they're just openly. . openly lying about stuff call me and. . then nothing happens you remember was. . under Brennan I think that you know the. . CIA even got caught like hacking into. . Senate staffers laptops I mean domestic. . spying worst of the worst he lied about. . it in front of an open committee and. . then later it turned out that he had. . been lying and nothing happened he's. . still he's still you know an eminent. . person and I have to watch him on CNN. . from time to time and it's just it's. . astonishing to me the level of brazen. . rule breaking law breaking criminality. . that can exist at that level with with. . nothing no consequences so here's what's. . happening so if you go to MIT the. . conclusion of my annual write-up I go. . super dark alright let's take the tool. . all of this I go through all of this. . even though I didn't write about it all. . because because and I. . talk about the digital the digital. . gulags that they're setting up you know. . I'm really bothered yeah sort of like my. . lowly innopolis who's a hateable guy I. . find him fascinating but I understand. . why people hate him I certainly why the. . left hates him profoundly but they've. . been able to erase him so he has he this. . guy was able to find microphones. . everywhere they have erased him from the. . public forum they took him off Twitter. . they took my facebook they took him off. . everything because they didn't want him. . there anymore. . and they took off Gavin McInnes who by. . the way was nowhere near as polarizing. . as that he was made out to be he's gone. . he got vaporized you know and they blew. . Roger stone who by he's hittable from. . both sides in my opinion but but but but. . but you you can't boot them right the. . next person who boot will be you mm-hmm. . because they'll say but your opinions. . are not worthy I got oh I got in that. . thing where they booted my YouTube I did. . a qtr podcast and they YouTube booted it. . now I didn't give a damn it's like so. . what well good you had many feathers in. . your cap this year and I think getting. . banned off of youtube that's one of them. . that was great but they're a bunch of. . Nazis and by the way YouTube's changing. . and people I really people noticed. . YouTube has these new rules and says you. . know the little guys if they're not. . earning enough money we can boot them. . right mm-hmm. . you know that means that it's gone it's. . corporate though it's not the word you. . no longer matters the word you is gone. . so if you I know there's videos that. . used to be on YouTube if you search them. . you can't find them what you can find. . our news stories to have the video. . innama but their corporate news stories. . and so YouTube is no longer about you. . this is this is this is this is an. . encroaching Stalinism I really don't. . think I'm being hyperbolic here it's. . just ism. . it's corporatism I don't think it's just. . that though because this is speech now. . you know talk through digital right we. . communicate through digital we don't. . write letters to the editor anymore we. . go to. . Facebook we go to youtube we got a we. . get we got a Twitter and the fact that. . they can I you know through the years. . right Standard Oil Exxon US Steel you. . know all the major industries they were. . powerful right they built an empire but. . they were powerful never did I feel like. . they controlled me and and these new. . companies control me it's not that they. . know everything about me I've long since. . given up on that nor do they control me. . here's a story that I tell in China and. . if you if it's in China now don't think. . it's not going to make it here in China. . they're talking to a couple of expats. . they're saying tell us about life in. . China gods really know Obama one then. . one guy says well you know because of. . all the cameras and facial recognition. . the other day I crossed the road and by. . the time I stepped on the curb I got a. . text message that said you just. . jaywalked. . we've deducted this much from your bank. . account mm-hmm I don't want to live in. . that world you know that's that's I. . don't want to live in a world where if. . you do 31 and a 30 you get deducted from. . your bank account I don't want to live. . in a world where where they can catch. . you doing anything right we're all. . married right we've got someone watching. . over our shoulder enough we don't need. . we we don't need a digital overseer. . overlord I want to get have to get. . caught I don't I don't want Volvos. . putting out a car that monitors your. . driving if they perceive your driving is. . distracted they alert the authorities I. . will never buy a Volvo if that's the. . case but then the other cars will do it. . this is beta testing yeah I don't this. . is horrifying to me we give up civil. . liberties one at a time cash right they. . want to get rid of cash I did add Kaiser. . report the other day and I was unaware. . this he says Michael Hudson thinks. . they're going to take Newark they're. . gonna take negative interest rates too. . before this is done negative 25 percent. . I said it will be a cataclysm if they. . take interest rates to negative 25. . percent right. . that that will be and and what's. . happening in the world right now. . violence is trending that's the problem. . violence is trending how many countries. . in the world are there other violent. . protests doesn't mm-hmm Hong Kong's get. . in the press but Portland organist is. . always flaring up that the yellow dress. . in France this is this is first world a. . third world yep violence is trending at. . some point the people say now I've had. . enough and once it starts how do you. . stop it. . not only is currency Fiat but government. . is fear the government declares they are. . in charge until the people say oh no. . you're not and then they've got a. . problem yeah and and they're really uh. . you know of one of my little quips. . yesterday on Twitter was I said if. . band-aids could cure cancer I'd be. . totally behind what the feds up to right. . we have these structural issues that. . that papering over with another half. . trillion of liquidity before year-end. . just just can't address you know and. . this is the part that I think is leading. . to so much of the stress and and some of. . it we can just look this always happens. . in the in all of the ancient religious. . texts they had this concept of a jubilee. . and if they had debt based systems where. . you know there was interest involved. . they understood that over time. . compounding systems get away from you so. . what was a Jubilee it was seven periods. . of seven that's 49 years mmm and that's. . about how long it takes before a. . compounding system really gets away from. . you and here we are approaching nearly. . the fiftieth year of of coming off the. . gold standard it's been a fun ride but. . look what's happened right we are now. . entrenched in a system where we are. . compounding our debts at more than twice. . the rate of income growth even on a. . nominal basis let alone real there's. . nothing you can do about that except to. . keep lowering rates so you get to zero. . and then you have to get stupid and say. . well maybe we just go into negative. . territory is if is if that waves a. . linear extrapolation of what we've been. . up to but everything goes wonky in. . negative territory because it doesn't. . make sense. . because fundamentally it says the out. . productive output of your excess surplus. . is is has a negative value right what. . what kind of right how do I make sense. . of that. . I don't even know what to do with that. . time I didn't timers have negative value. . too right so time is available. . why would I lend someone money to get. . less back by the way there's a gun in my. . dream explain who's buying all the. . negative interest rate bombs in a clip. . and I said who's buying those things. . right and it turns out that these bond. . funds are set up just like equity funds. . where they're sort of market cap. . weighted and so the city set the equity. . funds that the fangs just get bigger. . bigger bigger proportion because the. . higher their price the bigger their. . market cap more money to something to. . those shares and so you get this. . virtuous cycle off which will become a. . vicious cycle out the bumpers do the. . same thing and so apparently as as the. . bond you know approach zero and the the. . the price of the bond goes up apparently. . what's your cross zero it goes finance. . so yeah this negative interest rates are. . just insane and and that was a really. . big story coming in through the middle. . of last year seems to have come back a. . little bit but I mean yeah we're still. . talking ten trillion a negative yielding. . interest rates so I want to get to the. . conclusion of all this though because I. . do believe in this fourth turning aspect. . and I think where you went is where my. . mind and heart has gone which is to say. . that there's it's gonna get darker. . before it gets better and that's just. . trend extrapolation for me because the. . people I have I have to confess I have. . lost friends or former friends who have. . who have taken on emotional views that I. . can't I just can't follow and I see this. . gap getting wider and wider and wider. . between the various parties and in my. . mind I now actually begin to understand. . something that I was reading this. . article by this Colonel who whose job. . was to foment civil wars and. . insurrection in various countries you. . know welcome to the Empire it ain't. . right. . they have this whole model and they. . characterized and they said look there's. . eight things that you we would do or. . that you would need to see before you. . could reliably you know get a get some. . sort of a civil war started or an. . insurrection going and and he said his. . concern was he saw. . the United States had six out of that. . eight and I think with this new. . polarization we're seeing I think we're. . up to seven so I'm beginning to. . understand you know I think we already. . have an intellectual civil war but I'm. . beginning to understand how sides can. . become so entrenched and separate in. . their views that there really is no. . reconciliation available until some sort. . of catharsis is that where you're you. . were sort of heading with all this yeah. . yeah and and you know when you're. . watching a video and some guys are. . beating the tired of antifa and you're. . rooting for them you realize that you've. . jumped on the train and and and so you. . know as I was watch the guys scream at. . shift which I'm the one in a highly. . sympathetic to him I was more alert to. . this and I said you know Dave if you're. . rooting for these guys and you're kind. . of rooting for this armed and direction. . approach to to life and and and I think. . we're going there and it will not work. . well right it never does revolutions. . never work out for the little guy. . they're always sold to you as as you. . know we the proletariat we the we that. . we the people are going to take back our. . government and then guess why you just. . hand it to it to a dictator it never. . works well except with the exception of. . things like the American Revolution or. . shaking off shackles from across the. . pond but civil wars don't work out well. . at all right right so well yeah that's. . right that's where my brain is headed. . totally yeah and there's really no. . resolution I don't think to the sort of. . financial mess we've gotten ourselves. . into or the fiscal mess or the monetary. . mess you know and all of these things. . just feel like what we did here's my. . larger view look we right around 1913 is. . when we came up with this brilliant idea. . that we could just sort of like hey well. . just do this really really entrench this. . fractional reserve thing that's right. . about the time oil was coming online and. . then it all worked magically but. . correlation is not causation and it just. . happened to be that we were. . coincidentally going into deeper and. . deeper into debt as we had more and more. . of this tasty tasty fuel to do things. . with it was a lot of fun but now that. . that sort of nosed over and by the way. . conventional oil peaked. . years ago and we're replacing it with. . this ultra expensive stuff that by the. . way doesn't pencil out economically you. . know every every shell company I follow. . us losing money and has already burned a. . quarter trillion dollars it is not. . coming back out of the ground we can. . throw more money in holes in the ground. . but that's a different story so so now. . we're at this awkward part of the story. . where we have this entire entrenched. . system of constant exponential growth of. . money and credit and claims and we don't. . have a system that can they can. . accommodate that in the real world so. . it's really a human derived fantasy. . model which is fun because it gets to. . entrench power and you know it you know. . it's great and the reality of the world. . which is oh we're you know it can't it. . just can't can't support that level of. . growth anymore. . combined with the idea that China and. . India together are coming online to. . bring forward a billion middle-class. . people to more than Eclipse the entire. . middle classes of both Europe in the. . United States and their demand on. . resources that's the story I I really. . see as shaping up coming forward and. . nobody knows how to make sense of that. . and you know the status quo is just busy. . trying to pretend as if you know we can. . just persist that to me is the conflict. . our narrative doesn't doesn't work. . anymore just doesn't work oh I saw some. . crazy stat I'm going to make it up this. . is not true but it was something like if. . that if the country of we'll call. . country X produce no you know produce no. . co2 let's you see a – is a proxy for. . economics right in to the extent that. . energy burns the economy you burn energy. . to grow to grow the economy the the. . country acts if it put out no co2 that. . that would be the equivalent of what. . China puts out in ten minutes. . so some crazy stat like that and and so. . so so the the the the tragedy of the. . Commons is taking place on a gargantuan. . scale as India and China do what we are. . attempting to for better for worse. . whether logic or not reverse well this. . has been one of my chief critiques about. . about the climate change movement is. . that you know I read these articles to. . say you know we need to be zero carbon. . by 2030 or 2050 right. . I just pencil that out and I say cool. . just tell me which half of the people. . you think should die because we can't. . feed them Yeah right or or or or 90%. . right well 99 or you know you know which. . are you know how many which 10th 9 out. . of 10 jobs should go away I mean it's. . just the idea that that will just sort. . of comport ourselves by other means. . because we've decided that we should be. . able to use wind towers still still. . still misses the fact that if you watch. . a wind tower getting put up and you see. . the hundred thousand pounds of concrete. . and steel go into the base and then you. . see that the giant Tower go up in the. . nacelle and all the all the blades. . there's fossil fuels on every single one. . of those components just dripping off. . can you get that back or not from a wind. . towers is it energy negative no matter. . what I don't know because we have no. . closed-loop system that says we entirely. . use the energy from a wind tower to mine. . and produce all the components my my. . guess is a lot in life you can count. . that one well I would if they being. . counted I don't know how you would. . actually so it's just such a hyper. . complex interconnected system like where. . do you draw the lines in that study. . right like rocks. . chipping the stop and everything right. . yeah the sandwiches it's a trucker eight. . or did sandwich come from you know how. . about the roads that they drove on what. . were those made out of so for your. . listener I put in thirty two pages into. . climate change hmm and and and I'm not. . qualified to evaluate climate change. . right you have to be wildly broadly read. . and you have to be incredibly smart and. . diverse and a polymath and everything. . else under the Sun and then spend 10,000. . hours but what I what I've tried to do. . is to it to adjudicate it like maybe. . like a judge would adjudicate a case. . where they're not really qualified. . either but they just listen the two. . sides argue and then say okay here's my. . decision and the climate change story is. . a very complex one one thing what I can. . guarantee you is the you're being lied. . to in a profound way in the climate. . change story there's just so there's so. . much fibbing so much politics there's. . there's so many things there's so many. . vested interests it's not just Exxon. . there's vested interest. . 600 billion dollars is being put per. . year into climate change 600 billion. . dollars if you being counted across all. . the different stuff and so. . hypothetically let's say climate change. . turns out to be a dud right I don't. . doubt the year model which by the way we. . first met years and years ago but we. . first started communicating you were. . probably a third of the way through the. . crash course I remember you're going. . Jesus I'm going to listen to this I go I. . think they will but but I'm a big. . resource depletion Hawk and things like. . that I totally agree with everything you. . say about the pollution the plastics we. . don't need to pack everything in plastic. . what kind of garbage you know to call is. . that everything comes in plastic you. . know and and but but I don't think the. . climate is going to be our problem. . that's my conclusion and and if climate. . changes a dud here's the problem here's. . the biggest conflict of interest of them. . all if it's a dud that 600 billion goes. . poof right that's 600 billion. . departments on campuses agencies and. . governments subsidies for for various. . kinds of energy which I support various. . kinds of energy I love the tech I love. . this except for Facebook and and and I. . support doing all that but but but the. . push goes poof if climate change turns. . out to be a dud what are the odds of. . climate change is going to be a dud by. . that model the answer is zero they're. . not going to let 600 billion dollars go. . poof it's too important and so they're. . going to lie their ass off and here as a. . scientist and you're a scientist too as. . a scientist I watched the arguments i. . watch for emotional arguments i watch. . for database arguments i watch for i. . watch for plots that are rigging date. . and will plots that are cherry-picking. . start points and stuff like that it. . appears to me that the climate change. . crowd are the frauds. . I'm the deniers I'm not picking up the. . lies out of the deniers I'm not picking. . up the conflicts out of the deniers at. . all and I spent a lot of time and I. . could be wrong. . – really I haven't read a lot of the. . primary papers right all I've done is. . looked at the arguments as though we're. . a Harvard debate club right but but the. . specious arguments are coming out of the. . changers the ones are I can point to and. . say that's crap right there that's crap. . yeah and and and I read plots for a. . living right my day is staring at plots. . mm-hmm and trying to tease information. . out of them and when I see when I got oh. . man that is just a chart crime right. . there yeah well you're a scientist I'm a. . scientist so we've spent a lot of time. . looking at these things and we. . understand that that scientists are. . people and that cherry-picking data is. . very easy to do and confirmation bias is. . a thing and so you're as a scientist I'm. . more skeptical of science than most. . people I think right particularly yeah. . but typically in areas where I know. . there's vested interest so you want to. . get me started on something like any any. . sort of like healthcare study you know. . I'm just immediately suspicious like oh. . you know we we analyzed 17,000 kids and. . discover that there's no negative. . correlation – to screen time you know. . put your you know I know like yeah I. . need to know who funded that study it is. . so easy to screw up one of those studies. . – impulse by God polls oh my god are. . they corruptible and things like that so. . yeah yeah you really here's the thing. . that's so frustrating to me is you can. . reach a point where you believe nobody. . and you literally believe nobody and. . Daniel Ellsberg warned Kissinger of that. . when Kissinger was about to get top. . security clearance. . Ellsberg said Henry you're about to see. . stuff that's going to amaze you you're. . gonna be elated and then you're going to. . be talking to some guy who thinks he. . knows he was talking about but he. . doesn't know you know and then you're. . gonna realize that he is wrong because. . he doesn't know what you know and then. . you're gonna stop listening to people. . and then you're gonna be a bonehead. . [Laughter]. . that's pretty smart I like that and I'm. . afraid of reaching a point where someone. . will say well here's a study I go I. . don't believe it Yeah right and that's a. . dangerous place – but I'm getting close. . to that the whole climate thing is. . so I've never seen such a profound. . conflict of interest and it's not X ugh. . I said step X on doesn't need to be. . conflicted because you and I both know. . that they're going to sell what I bought. . whatever oil they can get out of the. . ground right yeah they're not gonna. . they're not going to not be able to hock. . oil their spirit. . wind wind power is not going to compete. . with Exxon they're not afraid of. . hydroelectric they're not afraid of. . geothermal because they know there's the. . best game in town by a mile as long as. . by the way I read exons 1980 here's one. . for ya I ran exed the 1982 report on. . climate change. . yeah yes did you pick up the one line. . that was important in there where they. . mentioned that that in the worst-case. . scenario so I thought it was a brilliant. . report I thought it was incredibly. . scholarly balanced and there's at all. . this is evidence X I knew that climate. . change was a prop ago no they were. . evaluating the published literature. . publicly published literature and trying. . to figure out what it all means but. . there was one line and it caught my tent. . I'm going oh that's a Chris Martenson. . moment here they said in the worst case. . scenario the co2 problem could become a. . problem before resource depletion and. . I'm going I think that's the first time. . I've seen a big oil company referred to. . they're running out of resource you. . probably have heard it you probably. . heard it as you know these guys yes so I. . was I served on this UN panel for a. . while there was a gentleman there who. . was a former president of US shale and. . there's a couple years ago when Peak Oil. . is dead Peak Oil is dead you know the. . media's just drunk oh my god okay what. . do you think about Peak Oil he goes all. . a totally real. . like we're in the business of looking. . for oil trust me we know we know exactly. . how hard it is to find and we've scoured. . every inch of the globe and and there's. . a few basins where we think we there's a. . little left over in Africa and maybe. . down to South America but but it's. . pretty well punched through right so for. . somebody who's in the biz there's no. . question about what's happening none. . whatsoever. . at the bottom of the Gulf of Mexico. . cow to get oil if it's easy to get right. . that is the bottom line your deer you're. . squeezing the last drops out of a sponge. . right and boy this is a long time back. . when we're when when it was all about. . Hubbert's P and Matt Simmons and boy boy. . that seems like an eternity ago the. . picot I was actually getting the. . attention now it's calm because they. . found a way to frack us back into oil. . and as you've said a million times the. . fracking wells don't last and the fields. . are getting drained now is it possible. . that there's there's there's shale type. . oil all over the planet that we haven't. . discovered is it possible that stuff. . exists yeah they're in very different. . price we may know about a few of those. . basins right and there's the vaca muerta. . in Argentina it looks pretty good. . Russia's got a pretty big play that. . looks pretty good so it's there you know. . in China but it but it's it's not. . unexplored as a point no when identified. . in your opinion pretty good sense of it. . at this point in time but you know we'll. . probably find some more I still think. . Africa is probably the last big prize. . because I don't think it's been sort of. . picked over the way everything every. . other play says I mean Africa's huge. . right it's like basically the size of. . all the other continents you care about. . in one you know and so now 50 years from. . now what's happening are we have we. . somehow bridge to some energy or are we. . gonna be living in a smaller footprint. . I'm going with smaller footprint on this. . one because you know it it's the the. . amount of energy it would take to. . develop ourselves so here's David Dylan. . here's where I would suddenly become. . hopeful instead of pretty cynical if. . suddenly you know our government came. . out and said hey look we got a lot of. . oil cuz you know we can still frack some. . more but it's not infinite we think. . there's X quantity we need X minus y to. . just build out towards this new future. . and that's what we're using it for so. . you know this new future is gonna be. . more local more electrified yada yada. . probably looks a little bit like Europe. . with their green belts and cities and. . all that stuff right or whatever but at. . least there's a plan to say we think. . it's going to take an allotment of. . energy to build a new thing a new system. . and we. . use it for that and then the rest of it. . go ahead you know put it in your f-150. . and take your kid an hour away to soccer. . practice right have at it. . but this a lot bent over here is for. . getting us into this new future but. . we're not doing that yeah so you use the. . seed corn to plant seeds yeah yeah and. . so they lose out so can we do this can. . we transition without hitting the nukes. . we can write we can I don't know it. . seems to I think we got it. . do the nukes and the problem is as I see. . it for us the local boys is that we're. . not going to hit the nukes fast yeah in. . China a place like that are well if we. . get the thorium reactors going I'd be. . even more hopeful China India working on. . it pretty hard that that seems like a. . pretty decent fuel cycle I've. . investigated that a bunch and the lifter. . reactors that that that there is there. . is something there but again you'd have. . to get started on it right now so here's. . my predictions for the United States. . we're not gonna get started anything. . we're gonna pretend like we can just. . keep driving our f150 s and Tahoe's and. . all that other stuff and then then there. . is a crisis right somehow and we all go. . oh gosh now we're short on energy but. . guess what that's a bad time to start. . trying to make your plans right because. . it that'll make your island right there. . we cut down the last tree yeah at that. . moment you know you you you have this. . towering pile of debt which was all. . predicated on an infinite future and. . something that's revealed as a fantasy. . and so your entire financial system goes. . into disarray which means I think coming. . up with a giant capital intensive very. . technologically interwoven build project. . that's larger than anything we've ever. . undertaken that's a you know crisis is a. . bad time to sort of envision and execute. . something like that that's how I look at. . it I totally agree but the problem is. . we're so close to a financial crisis now. . that we may we may be way way way past. . the failsafe on yeah we we don't have 50. . trillion left in us in my opinion mhm. . to do this without doing some serious. . damage to the dollar into the to the. . economy and all sorts of stuff III just. . don't see it I think we've got all these. . unfunded liabilities that we have to pay. . or or face the consequences of and. . they're they're enormous or. . fantastically enormous on the pensions. . are all underfunded at the top of a. . bubble in them that the Social Security. . is a disaster we promise so much medical. . help for everyone that it's now. . profoundly expensive by the way you know. . is making a fortune in this and this. . medical thing you mentioned it I've been. . trying to find a where all the money's. . bleeding mm-hmm and I've made the. . argument I think in your podcast before. . that if you actually look at the firemen. . they're profitable but but but. . collectively the big ones you don't you. . can't find unsightly and you can't find. . unseemly profits you find good healthy. . profits the insurance companies are. . going nuts. . insurance companies are printing money. . they have found a way to make the higher. . health care cost even more profitable. . yeah I know they're really disgusting. . immoral shameful people and I'm hoping. . for the public humiliations to start at. . some point in the future because it's. . really awful what they're doing just I. . would like where that one yeah I know. . yeah I know a boy can know so well what. . do you see you know in the closing. . moments here so you went dark at the end. . you you you think this gets a little. . worse before it gets better but what are. . you actually seeing in the next few. . years coming forward well at some point. . we're going to have a recession and then. . we're going to find out if Dave is right. . or wrong and his economic forecasting. . because I'm sort of in the John Hussman. . Club of overvaluation and you know. . overextended and I see all these guys. . who say yeah but on a blow-off top you. . got to stay invest and I got you know I. . don't care about that I mean if you tell. . me that in five years we're going to. . have buildings burning to the ground. . economically I'm happy to step aside now. . and and and and and they're kind of. . talking that way now the blow off top. . lingo is the way of saying stay invested. . stay invested don't jump out because. . this is where you're going to make a lot. . of money I go yeah that that's that's. . dumped I'm I'm not buying that model I. . think we're going to end up in the next. . recession whenever it comes and this way. . overdue in my opinion we're going to. . find out where the dead bodies are. . buried and then the question is if it's. . a generic recession I'm wrong. . and I think it's going to be a mean one. . I think it's going to be an awful one. . and I think the people are going to be. . mad it's going to have social unrest. . associated with it because the gimmick. . guys are going to go I lost my job again. . and now you're asking me to bail out the. . banks again how is this possible right. . mm-hmm that's what they're going to try. . to do and and we're not we're there some. . farmer said quit talking down to us. . we're smarter than you think and that's. . correct that is our collective wisdom is. . unbelievable. . yeah we're reading this year about how. . the Syrian chlorine gas attacks hmm. . you're a fraud I wrote about that last. . year Twitter totally debunked them right. . the populace knows this stuff now you. . can't miss this stuff if you're paying. . attention and now I've a sudden it's. . like and we knew that combing these guys. . has lied their asses often the Horowitz. . reports not a shock to me not a shock to. . you know right we knew they were lying. . and at some point at some point Joe. . Sixpack sis that's it I've had enough. . and I don't know what happens I don't. . know what happens I I keep thinking. . you're gonna tell me because you are so. . much more sort of up to speed on the. . social societal stuff but I can't. . picture how it's sort of like a person. . with you know stage 4 liver cancer go. . well what next I go you're gonna die. . right and and you can't wrap your brain. . around it well here's the thing you. . mentioned a government by Fiat and it's. . by the consent of the governed and of. . course we've been fairly willing with. . our consent for a long time but that can. . break quickly like that school officials. . like turning left and then we have a. . system of money by Fiat and it's really. . a faith based system and credit really. . operates on trust well we don't have. . that that's what we're taught that's the. . general theme here to me is this loss of. . trust and it's the erosion of that. . institutional trust in fact it's worse. . than that people now trust that the. . healthcare executives are going to be. . greedy shameful pigs who are gonna do. . everything they can to screw them right. . or wrong right we know that in the. . media's letting us top that city it's. . got mattered the most. . the media is letting us down. . completely and that that bothers me to. . no end because they're kind of the. . sheriff's on the beat yep right they're. . supposed to be out there watching and. . writing about this and doing their. . Woodward and Bernstein thing and there. . are some good ones like Cheryl Attkisson. . there's some good but there's some that. . are just so bad and and this is where. . Trump is correct when he attacks the. . media now the people hate Trump again I. . get it but the media is awful and. . they're constitutionally protected they. . don't deserve the protections get up on. . the bench bring someone off the bench. . and give them here by the way you know. . some guys that Starbucks you want greed. . the Starbucks CEO just got offered a. . fifty million dollar bonus if his shares. . three years from now who beat 80% of S. . irrespective of whether it's there up or. . down and here's the offer I'd make I'd. . find some smart potential CEO I say. . here's the deal we'll give you a job you. . work for free and if Starbucks has read. . these metrics which have nothing to do. . with share price share prices cancer to. . the system you give the CEO the chance. . to stay here to work for free for three. . years and if you get these metrics of. . real wealth creation to this level you. . get to keep the job but you're going to. . work for free till then and there'd be. . people who would say deal I'll take it. . I'll take it I'll take it you don't have. . to give a guy a huge salary and a fifty. . billion dollar bonus some people would. . just love that job well I would hate it. . actually like he's so incompetent but. . there's people who take a say Yeah right. . I don't need money I need a company I. . want to run a company right so so the. . reason he's getting a 50 million dollar. . bonus regardless of what the share price. . does as long as he beats the other guy. . think how much corruption that's going. . to create think how much think how much. . you know the insider crap and the. . buybacks or something he's going to do. . because he's got a 50 million dollar. . bogey he's gonna hit. . and he will rig it till he hits it. . there's no there's no chance he cares. . about the shareholders long-term he'll. . get the share price that's not long-term. . someone's going to get screwed if you. . pump the price up we know that's true I. . want a person who runs companies well I. . don't want a person who who just focuses. . on chip rest share price is a false. . indicator mm-hmm well and as we've seen. . you know when the reason I think this is. . going to be a barn burner of a recession. . because it's not really a recession the. . recession is a business cycle this is a. . credit cycle that's gonna burn itself. . out and when credit cycles end it's like. . lights out right all those c-suite. . decisions are like how many chairs are. . we gonna buy back well they just decide. . that afternoon no more right and you. . know all sorts of things that were sort. . of running flawlessly and forward just. . grind miserably into reverse you know. . and you know it's just it's really fast. . that was my learning from the last two. . bubbles you know when pets calm closes. . its doors down it happens pretty much. . overnight and everybody's fired right. . it's really fast whereas in a normal. . recession you know the business cycle. . starts to turn and Ford says well maybe. . we've got a little bit too much. . inventory it just takes months to sort. . of wind things down and mothball stuff. . and make painful firing decisions but. . when your credit runs out and your. . zombie company it's lights out that next. . day you know it's just it's it's over. . right yeah 10% of the S&P; 14% are said. . to be zombies 14 that's a James grant. . number 14% of those major companies are. . said to be zombies meaning their cash. . flow doesn't pay the interest on their. . debt those are going to be auctioned off. . on the courthouse steps mm-hmm. . when we hit the next and as you as you. . put it when credit cycles end you end up. . in in yeah I'm not afraid of deflation I. . am afraid of a deflationary collapse you. . ready to write deflation is fine if we. . had let deflation do its thing we'd be. . in great shape but no we don't but the. . deflationary collapse is a disaster. . right that's Great Depression 2.0 yeah. . yeah but we're not tough like we were in. . the thirties no but I you know what I. . know some people are trying to get tough. . because if they see it coming so. . it's it's kind of a there is a little. . bit of a movement out there amongst at. . least the people I hang with to become. . more resilient and get in shape and. . learn how to grow a few things in your. . garden because we might need to might. . need those skills back here on this next. . one so I'm just you know my summary is a. . pox on both houses and and shame on the. . institutions that are failing us so. . badly be at the Fed or the media but. . that's really on us you know those are. . self-inflicted wounds at this point in. . time and so you know I guess I'm okay if. . those chips have to fall where they're. . gonna have to and just you know. . hopefully it's not too bad my fear is. . that it is too bad and that you know it. . once things really begin to collect. . correct and go into collapse of. . financial system that's where. . politicians bring out their worst sides. . they blame China they say it was Russia. . they just make crap up and next thing. . you know there's missiles flying to. . speak of a different sort of a nuke I'm. . really worried about that possible. . outcome because because listen the DNC. . had a chance to say wow we put up. . probably the single worst person in the. . universe and they actually lost a Donald. . Trump we need to look in the mirror and. . not do that again and instead they just. . stopped bringing her back instead god. . please. . and instead they said oh it must have. . been Russia and came up with this whole. . thing that was easily debunked by people. . with with an a functioning computer. . inside of minutes and somehow you know. . that evaded the entire superstructure of. . commentators and and journalists and. . it's just a mystery to me that it anyway. . if we lack the ability to have even that. . level of introspection around these. . things III don't I don't I'm not too. . positive for how we're gonna respond. . when the next crisis starts yeah now I. . totally agree and so I that they're. . there and I think that's what the Fed. . sees so if I'm going to give them credit. . but by the way watch out this is a. . totally a tangential thing but the world. . hasn't picked up on this one there was a. . model put out by the saint who was fed. . for for a change in various reserve. . habits and and and that with the Fed. . proposed to do was to let was to let. . banks sell non reserve assets to the Fed. . it will. . and that would encourage them to keep. . their reserves to a minimum and it was. . put forth by this guy named David and. . Alfaro who has actually supposed to. . debate and then he bailed on me. . unfollowed me on Twitter apparently. . didn't like the fact that I've been. . hammering the Fed relentlessly but uh. . but but but what what they're trying to. . do is they're trying to give the bank's. . the power to do QE at will mm-hmm and. . it's it's got no press it's the end of. . ATO Trigg model it's got no press no he. . got mad at me when he was saying looked. . at what they'll do is they'll sell their. . Treasuries they'll they'll they'll take. . their excess reserves and they'll buy. . Treasuries now I think the model was. . that would allow them to them unwind the. . Fed balance sheet right because their. . excess reserves would be used to buy the. . Treasuries of the Fed to keep selling. . into the marketplace but I said but. . David what they're going to do is. . they're not going to buy Treasuries. . these excess reserves are just going to. . use to leverage up elsewhere and they. . will become non excess by statute they. . will become you don't they don't lend. . reserves they lend against reserves when. . you have excess reserves you have excess. . lending capacity and they will do that. . instead you're going to lever up the. . system you got mad and but watch for. . that because I think they're going to. . have QE on demand is is what I would. . call that model and it wrote quite a bit. . about that and it got no press it got no. . press that I can see but I think it's. . coming well it's just if you know you. . know we're gonna try more and more crazy. . things anything right to keep this whole. . thing sort of going and of course. . without a plan a master plan that says. . hey if we do keep this all going here's. . how it resolves you know you know here's. . what growth returns here's where here's. . when we finally pay stuff down because. . it's never a good time to pay stuff down. . during the expansion hey guys should we. . and then when it when the correction. . comes hey now is a terrible time it's. . always a bad time so you just keep. . pushing this further and further but. . eventually you know the big math problem. . here is people go oh oh 300 trillion. . dollars of Exton debt plus four times. . that in unfunded liabilities and all of. . those only make sense if we can have a. . future that's larger than the present. . well how do you get a larger future oh. . you gotta burn more oil you got to make. . more cars you got to build more houses. . takes resources so sooner or later. . people go oh we don't even have the. . resources to to make this square the. . circle in this story and and that's just. . so painfully obvious to me I don't know. . why it isn't even so I quoted you when. . you said I think was not too long ago. . actually where you said we've doubled. . our global oil consumption since the. . 1990s. . how many more doublings do we have left. . and and that's exactly right to the. . extent that doubling the oil consumption. . is is not only a proxy for doubling the. . economy but it's it's it's a mandate for. . not only the economy right you burn oil. . to to grow your economy um you can't. . keep doubling right I go all the way. . back to the original crash course where. . you had a puddle in the infield in the. . stadium that fills the infield by noon. . right and you can't keep doubling the. . exponential function the Albert Bartlett. . moment it doesn't work and that's that. . was the great insight of the crash. . courses nothing nothing that's. . exponential is sustainable right right. . well thank you for that and it's listen. . we're out of time i we let's do this. . again let's do it again okay we got a. . lot more to talk about this has been an. . absolutely fascinating romp and thank. . you so much for of course taking the. . time it's a real public service I think. . writing your year-in-review and this. . one's a doozy yes really good and I. . think people actually really need to. . spend some time with it and to think. . through not just what are the. . implications if this fourth turning. . comes as it seems to be coming and what. . are the social implications of that but. . also what are their responses to that. . going to be how are they going to. . personally you know what actions you can. . take nothing something and so I there's. . a lot here to chew on a lot to consider. . and it's funny too. . so thanks for making it many moments of. . levity in there great quotes it's. . perfect so you're welcome thank you for. . having me. . all right dip until next time. . people you can find the Year in Review. . of course at peat prosperity and we'll. . have the link right at the bottom of. . this podcast so take it read it read it. . over a couple of mornings and let's have. . a great conversation about it at the. . site Dave thanks again you bet thank you. . you
Great crunchy crust and great texture. But only the day of the bake! Next day texture is weak.