1 00:00:00,240 --> 00:00:03,000 Speaker 1: Thanks for listening to the best of Coast to Coast podcast. 2 00:00:03,080 --> 00:00:05,640 Speaker 1: Become a Coast Insider to hear the rest of this 3 00:00:05,760 --> 00:00:09,760 Speaker 1: fascinating conversation and check out recent shows where we learned 4 00:00:09,760 --> 00:00:13,200 Speaker 1: about scientific efforts to revive the Woolly mammoth, the latest 5 00:00:13,200 --> 00:00:16,880 Speaker 1: in military drone technology, and the mysterious Shroud of Turin. 6 00:00:17,239 --> 00:00:19,440 Speaker 1: And you can listen to those programs and many more 7 00:00:19,480 --> 00:00:22,560 Speaker 1: amazing Coast shows by heading over to Coast to Coast 8 00:00:22,560 --> 00:00:26,520 Speaker 1: am dot com and signing up for Coast Insider. Now 9 00:00:26,560 --> 00:00:30,600 Speaker 1: here's a highlight from Coast to Coast AM on iHeart Radio. 10 00:00:30,800 --> 00:00:33,640 Speaker 1: Katherine Austin fits with us in the studio. She has 11 00:00:33,680 --> 00:00:36,440 Speaker 1: served as managing director member the board of Directors of 12 00:00:36,479 --> 00:00:39,440 Speaker 1: the Wall Street Investment Bank, Dylan Read and Company. Has 13 00:00:39,479 --> 00:00:43,040 Speaker 1: served as the Assistant Secretary Housing and Federal Housing at 14 00:00:43,080 --> 00:00:46,879 Speaker 1: hud in the first Bush administration as well, and puts out, 15 00:00:46,880 --> 00:00:50,400 Speaker 1: of course the Silary Report, which just came with lips 16 00:00:50,560 --> 00:00:55,040 Speaker 1: on George Washington's head. Catherine, what's that all about? Well, 17 00:00:55,400 --> 00:00:58,120 Speaker 1: the title says, and forced the Constitution or you can 18 00:00:58,200 --> 00:01:02,000 Speaker 1: kiss your money goodbye, and that's just about what's happening. 19 00:01:02,200 --> 00:01:05,440 Speaker 1: George has a big pink kiss right on his forehead. 20 00:01:05,560 --> 00:01:07,720 Speaker 1: Well the wrong, George. I don't have a kiss on mark, 21 00:01:08,480 --> 00:01:10,560 Speaker 1: but that's the way it goes. I had a story 22 00:01:10,680 --> 00:01:14,000 Speaker 1: right before you came in that FICO credit scores are 23 00:01:14,080 --> 00:01:17,120 Speaker 1: at an all time high seven hundred on the average 24 00:01:17,160 --> 00:01:20,039 Speaker 1: for people. That's a good story, I guess, right, Well, 25 00:01:20,040 --> 00:01:21,920 Speaker 1: that's a good story. But I think it it says 26 00:01:22,000 --> 00:01:24,959 Speaker 1: people are have learned their lesson number one, but they 27 00:01:25,040 --> 00:01:28,200 Speaker 1: see where incomes are going and expenses arising. They're saying, 28 00:01:28,600 --> 00:01:31,000 Speaker 1: now it's not a good time to have debt, particularly 29 00:01:31,080 --> 00:01:33,760 Speaker 1: with interest rates going up, so they're paying off their debt. 30 00:01:33,920 --> 00:01:35,800 Speaker 1: Some people are saying that the two thousand and eight 31 00:01:35,880 --> 00:01:39,880 Speaker 1: bubble still could burst again. Yes, I I think it could, 32 00:01:39,959 --> 00:01:43,800 Speaker 1: although the the president of the FED recently said that 33 00:01:43,840 --> 00:01:46,360 Speaker 1: there's no chance for financial crisis in our time. I 34 00:01:46,400 --> 00:01:49,680 Speaker 1: don't know which scared me the most, as if she 35 00:01:49,800 --> 00:01:54,480 Speaker 1: was lying or not. Yeah, interest rates, as you just mentioned, Catherine, 36 00:01:54,480 --> 00:01:57,120 Speaker 1: are inching back up by you know, point to five 37 00:01:57,160 --> 00:01:59,720 Speaker 1: a point every time they seem to get together these days. 38 00:02:00,840 --> 00:02:03,320 Speaker 1: But you know, interest rates were down pretty low for 39 00:02:03,360 --> 00:02:07,000 Speaker 1: a long time, so this bump is not unusual, is 40 00:02:07,000 --> 00:02:09,480 Speaker 1: it right? And if you look at you know, if 41 00:02:09,520 --> 00:02:11,560 Speaker 1: you look at where they're inching too, it's still not 42 00:02:11,680 --> 00:02:14,600 Speaker 1: a high rate. So so we could move up a 43 00:02:14,680 --> 00:02:17,079 Speaker 1: hundred to two hundred basis points and interest rates would 44 00:02:17,120 --> 00:02:21,119 Speaker 1: still be relatively very low. The challenge, George, is that 45 00:02:21,360 --> 00:02:23,919 Speaker 1: government is borrowed, sovereign governments all around the world a 46 00:02:24,000 --> 00:02:26,920 Speaker 1: bar tremendous amounts of money, and they've been getting a 47 00:02:26,960 --> 00:02:30,320 Speaker 1: windfall subsidy with low interest rates. With interest rates inching up, 48 00:02:30,360 --> 00:02:33,120 Speaker 1: it's going to hurt them. Meantime, the pension funds and 49 00:02:33,160 --> 00:02:36,519 Speaker 1: insurance companies have been hurt tremendously by these low interest rates, 50 00:02:36,520 --> 00:02:38,280 Speaker 1: are going to get a little bit of relief. You know. 51 00:02:38,320 --> 00:02:40,200 Speaker 1: It's so amazing to Katherine. You and I have been 52 00:02:40,440 --> 00:02:44,239 Speaker 1: doing these programs together for years on the telephone. Primarily 53 00:02:44,840 --> 00:02:47,000 Speaker 1: we are sitting five feet away from each other, and 54 00:02:47,040 --> 00:02:49,000 Speaker 1: we still haven't looked at each other since you've been 55 00:02:49,040 --> 00:02:51,360 Speaker 1: in here. I've been staring at you the whole time, George. 56 00:02:51,720 --> 00:02:56,440 Speaker 1: It's like we're still millions of miles away. But that's good. 57 00:02:56,560 --> 00:02:58,679 Speaker 1: I should mention, by the way, Catherine is in Los 58 00:02:58,760 --> 00:03:02,200 Speaker 1: Angeles for her luncheon series with us tomorrow and I'll 59 00:03:02,240 --> 00:03:04,120 Speaker 1: mention a little bit more about that at the end 60 00:03:04,120 --> 00:03:07,639 Speaker 1: of the aprom excited. Oh, you've got lots of people coming. 61 00:03:07,800 --> 00:03:12,920 Speaker 1: They are, You've got people coming from Virginia in other states. 62 00:03:12,960 --> 00:03:16,240 Speaker 1: That's what driving up for this. This is amazing. So 63 00:03:16,280 --> 00:03:18,600 Speaker 1: we're gonna give them a good time tomorrow, Katherine. But 64 00:03:18,960 --> 00:03:21,200 Speaker 1: I'll tell fun because there's still room for some more people. 65 00:03:22,560 --> 00:03:26,040 Speaker 1: Come on out, come out here. How do you think 66 00:03:26,080 --> 00:03:30,040 Speaker 1: things are going right now? Economically? Yeah? I don't want 67 00:03:30,080 --> 00:03:32,799 Speaker 1: to get into administrations or anything like that right now, 68 00:03:32,840 --> 00:03:35,680 Speaker 1: but just how are things going for people? George? For 69 00:03:35,720 --> 00:03:38,280 Speaker 1: ten or fifteen years, I kept saying the economy is 70 00:03:38,320 --> 00:03:41,160 Speaker 1: gonna slowber and slow bur in the middle classes getting squeezed. 71 00:03:41,160 --> 00:03:44,440 Speaker 1: But we're gonna slow burn along. Now we're coming into 72 00:03:44,480 --> 00:03:46,880 Speaker 1: a period of what I call controlled demolitions. That's what 73 00:03:46,920 --> 00:03:49,320 Speaker 1: I talked about in the annual wrap up. We're out 74 00:03:49,320 --> 00:03:52,160 Speaker 1: of runway and so what you're starting to see is 75 00:03:52,240 --> 00:03:56,520 Speaker 1: pension funds announced, trouble right downs, all sorts of squeezes. 76 00:03:56,600 --> 00:04:00,280 Speaker 1: Illinois is going to be the poster child for next 77 00:04:00,360 --> 00:04:02,920 Speaker 1: year of what's happening both with with state and local 78 00:04:02,960 --> 00:04:06,640 Speaker 1: pension funds and UH and local government. But I think 79 00:04:06,680 --> 00:04:08,880 Speaker 1: we're in for a period where we're gonna have a 80 00:04:08,960 --> 00:04:13,080 Speaker 1: real re engineering of institutions and it's going to be very, 81 00:04:13,200 --> 00:04:16,200 Speaker 1: very painful for the American middle class. Well that's not 82 00:04:16,279 --> 00:04:19,200 Speaker 1: a good good sign. No, no, it's not a good sign. 83 00:04:19,240 --> 00:04:21,680 Speaker 1: It's it's a it's a tough period. And of course 84 00:04:21,760 --> 00:04:23,680 Speaker 1: that one of the ways the Fed is dealt with 85 00:04:23,760 --> 00:04:26,920 Speaker 1: this for a long time is to keep essentially very 86 00:04:27,000 --> 00:04:30,200 Speaker 1: quietly printing money. By what they're doing with they're basically 87 00:04:30,279 --> 00:04:34,160 Speaker 1: debasing the currency and that's been pushing up assets on 88 00:04:34,279 --> 00:04:36,719 Speaker 1: you know, so we're watching inflation in the balance sheet, 89 00:04:36,720 --> 00:04:38,200 Speaker 1: and you know, because you're here in l A and 90 00:04:38,240 --> 00:04:41,080 Speaker 1: you see the property prices. So I just got back. 91 00:04:41,240 --> 00:04:44,200 Speaker 1: I just got back from Sydney in Hong Kong, and 92 00:04:44,240 --> 00:04:47,000 Speaker 1: it's all around the Pacific Rim. The property prices are 93 00:04:47,040 --> 00:04:49,240 Speaker 1: just bubbling. And a lot of that is the central 94 00:04:49,240 --> 00:04:53,680 Speaker 1: banks policies of currency debasement. But that's hurting many, many 95 00:04:53,720 --> 00:04:56,719 Speaker 1: middle class all around the world. Don't don't boast people 96 00:04:56,920 --> 00:05:00,200 Speaker 1: inform lands when they buy a house, don't they hey, 97 00:05:00,240 --> 00:05:03,760 Speaker 1: cash and where do they get it? I don't hear anymore. 98 00:05:04,000 --> 00:05:07,760 Speaker 1: I don't hear of mortgages in other countries. Well, I 99 00:05:07,800 --> 00:05:10,000 Speaker 1: think I think certainly in this area, you've had a 100 00:05:10,040 --> 00:05:12,840 Speaker 1: lot of foreign cash coming in and buying properties. So 101 00:05:12,920 --> 00:05:16,360 Speaker 1: that's how they're buying cash or investors. So we've we're 102 00:05:16,400 --> 00:05:20,039 Speaker 1: seeing a migration from a world where seventy percent of 103 00:05:20,080 --> 00:05:26,440 Speaker 1: Americans are homeowners to seventy are so so seventy percent 104 00:05:26,480 --> 00:05:29,480 Speaker 1: of Americans are were headed towards the world where they're 105 00:05:29,480 --> 00:05:33,719 Speaker 1: going to be renters. I think, uh, in Toronto, in Canada, 106 00:05:33,760 --> 00:05:36,560 Speaker 1: they've got like a ten percent tax on FOURGN investors 107 00:05:36,760 --> 00:05:39,760 Speaker 1: if they buy property, right, So you're seeing you're seeing 108 00:05:39,839 --> 00:05:44,520 Speaker 1: municipalities do things to really discourage foreign investment. I mean 109 00:05:44,520 --> 00:05:46,520 Speaker 1: you go to some places. You can go to some 110 00:05:46,600 --> 00:05:49,479 Speaker 1: areas of New Zealand where a significant amount of the 111 00:05:49,480 --> 00:05:53,640 Speaker 1: housing stock is empty because it's owned by foreigners. That Catherine, 112 00:05:53,680 --> 00:05:58,520 Speaker 1: what about war? If something happens North Korea, does the 113 00:05:58,560 --> 00:06:03,840 Speaker 1: economy flourish or well? War is our number one risk, um, 114 00:06:03,880 --> 00:06:07,520 Speaker 1: you know, not just economic risk, but obviously physical risk. 115 00:06:07,560 --> 00:06:10,960 Speaker 1: And I think war is a very serious concern because 116 00:06:11,000 --> 00:06:15,440 Speaker 1: we're having to change our financial and economic models. And 117 00:06:15,520 --> 00:06:18,159 Speaker 1: we've been working with the Central Banking warfare model for 118 00:06:18,200 --> 00:06:20,920 Speaker 1: five hundred years. Changing a model that big and deep 119 00:06:21,040 --> 00:06:23,599 Speaker 1: is very difficult. And the place you see it is 120 00:06:23,640 --> 00:06:26,320 Speaker 1: in the is in the federal budget. So the new 121 00:06:26,360 --> 00:06:29,559 Speaker 1: administration came in and a lot of what they've wanted 122 00:06:29,600 --> 00:06:33,599 Speaker 1: to do has stalled around the budget because, uh, there's 123 00:06:33,760 --> 00:06:36,880 Speaker 1: great concern or there's a great tension about how we're 124 00:06:36,880 --> 00:06:40,080 Speaker 1: going to re engineer the federal budget. So the President asked, 125 00:06:40,160 --> 00:06:44,800 Speaker 1: instead of re engineering the whole military presence and how 126 00:06:44,800 --> 00:06:47,520 Speaker 1: we're going to do the military, he just decided to 127 00:06:47,640 --> 00:06:51,120 Speaker 1: increase the budget. And now we see Senator McCain saying, No, 128 00:06:51,279 --> 00:06:55,160 Speaker 1: fifty seven billion increases not enough. We need another hundred billion. 129 00:06:55,640 --> 00:06:58,840 Speaker 1: And the danger, George, is that that hundred billion then 130 00:06:58,880 --> 00:07:03,240 Speaker 1: authorizes you to engage in warfare around the world. Now 131 00:07:03,279 --> 00:07:06,279 Speaker 1: the economic pressures to do that, but it's not in 132 00:07:06,320 --> 00:07:09,960 Speaker 1: America's best interest. Catherine Austen fits with us. That is 133 00:07:10,000 --> 00:07:12,920 Speaker 1: the voice you are listening to right now. And Katherine, 134 00:07:12,920 --> 00:07:16,960 Speaker 1: you're also going to participate in our Coast Insiders chat tomorrow. Yeah, 135 00:07:17,160 --> 00:07:19,520 Speaker 1: we're chatting on a half and you're going to do 136 00:07:19,600 --> 00:07:21,600 Speaker 1: the other half hour and that will be fun. You're 137 00:07:21,600 --> 00:07:26,240 Speaker 1: gonna find the Coast Insiders extremely knowledgeable, yes, they are 138 00:07:26,360 --> 00:07:29,800 Speaker 1: just about everything. Yes they are. So I want to 139 00:07:29,800 --> 00:07:33,760 Speaker 1: get into after the break enforced the Constitution or kiss 140 00:07:33,760 --> 00:07:36,720 Speaker 1: your money goodbye, want you to explain what that all means. 141 00:07:36,720 --> 00:07:39,240 Speaker 1: But since you've been doing coast to coast with us, 142 00:07:39,280 --> 00:07:42,120 Speaker 1: and you've been doing it for years, you've been through 143 00:07:42,160 --> 00:07:44,880 Speaker 1: the evolution of the economy. You've seen it go up, 144 00:07:45,360 --> 00:07:51,360 Speaker 1: down and up again. What's happening with most Americans today? 145 00:07:51,400 --> 00:07:55,640 Speaker 1: Are they okay? No? Financially, I would I would say 146 00:07:55,840 --> 00:07:59,680 Speaker 1: most Americans are not okay. They're being squeezed um. And 147 00:08:00,080 --> 00:08:02,520 Speaker 1: we're coming into a period when we have very heavy 148 00:08:02,560 --> 00:08:06,000 Speaker 1: retirements and the pension fund arrangements we made for those 149 00:08:06,040 --> 00:08:10,400 Speaker 1: retirements are not adequate. So and that, and that's creating 150 00:08:10,720 --> 00:08:14,040 Speaker 1: a really significant problem both for the retirees as well 151 00:08:14,040 --> 00:08:17,400 Speaker 1: as particularly state and local government in some corporations. But 152 00:08:17,440 --> 00:08:20,120 Speaker 1: here's what's happened, George, Because the first show I ever 153 00:08:20,200 --> 00:08:22,400 Speaker 1: did with you, I was in Montana and it was 154 00:08:22,440 --> 00:08:25,720 Speaker 1: two thousand five, and I started talking about the financial 155 00:08:25,760 --> 00:08:27,720 Speaker 1: coup Dayton and all the money that was going missing 156 00:08:27,720 --> 00:08:31,560 Speaker 1: from the federal government. Right and it's now it's now 157 00:08:31,640 --> 00:08:34,520 Speaker 1: over ten, it's twelve years later, and we literally have 158 00:08:34,600 --> 00:08:38,200 Speaker 1: had over forty trillion dollars shifted out of the federal 159 00:08:38,240 --> 00:08:41,440 Speaker 1: government by bailouts. Are literally eleven point five train going 160 00:08:41,480 --> 00:08:44,199 Speaker 1: missing in two thousand fifteen, the d O d O 161 00:08:44,200 --> 00:08:47,560 Speaker 1: autit was missing six point five trillion dollars. How could 162 00:08:47,559 --> 00:08:50,240 Speaker 1: you miss that kind of money? With securities fraud, that's 163 00:08:50,240 --> 00:08:53,520 Speaker 1: how you can miss that much. So it's absolutely feasible 164 00:08:53,600 --> 00:08:57,040 Speaker 1: to to see you can't miss it. It has to 165 00:08:57,080 --> 00:09:00,200 Speaker 1: be engineered out. So um So I've been talking, working 166 00:09:00,280 --> 00:09:02,960 Speaker 1: for many, many years, including on coast to coast, about 167 00:09:02,960 --> 00:09:05,960 Speaker 1: a financial coup Dayton. Now we see a push now 168 00:09:06,000 --> 00:09:09,719 Speaker 1: starting last year, to try and get a constitutional convention 169 00:09:10,200 --> 00:09:12,760 Speaker 1: on the theory that we need to change the constitution 170 00:09:12,960 --> 00:09:17,600 Speaker 1: and force a balanced budget amendment. And my issue, George, 171 00:09:17,640 --> 00:09:21,959 Speaker 1: is if you balance the US budget using our properties 172 00:09:21,960 --> 00:09:24,800 Speaker 1: and resources but not the forty trill and you just stole, 173 00:09:25,520 --> 00:09:31,400 Speaker 1: guess what happens, Well, you know we get right, Well, 174 00:09:31,440 --> 00:09:33,640 Speaker 1: we get to plug the hole with your well, your 175 00:09:33,679 --> 00:09:36,920 Speaker 1: personal wealth. So if I empty out the store room 176 00:09:36,960 --> 00:09:38,959 Speaker 1: and plug the hole with my personal wealth in a 177 00:09:39,040 --> 00:09:44,120 Speaker 1: leak like a sive. So so what I've said to 178 00:09:44,160 --> 00:09:47,080 Speaker 1: everyone is, look, we don't need to change the Constitution, 179 00:09:47,160 --> 00:09:50,520 Speaker 1: we need to enforce it. And by enforcing it, I 180 00:09:50,520 --> 00:09:52,720 Speaker 1: mean we need to figure out where that forty trion 181 00:09:52,800 --> 00:09:56,520 Speaker 1: went and get it back. They stole it. But here's 182 00:09:56,559 --> 00:09:59,480 Speaker 1: the reality. If you look at the law related to 183 00:10:00,120 --> 00:10:02,800 Speaker 1: the management of the federal budget, both the Constitution the 184 00:10:02,800 --> 00:10:06,479 Speaker 1: financial management laws, there are ways to get the equivalent 185 00:10:06,520 --> 00:10:08,959 Speaker 1: of that money in the form of assets or common 186 00:10:09,000 --> 00:10:12,040 Speaker 1: law right of all set back. So if we're going 187 00:10:12,080 --> 00:10:15,200 Speaker 1: to balance the budget, let's put that forty trillion and 188 00:10:15,280 --> 00:10:18,200 Speaker 1: those assets back on the on the budget before we 189 00:10:18,280 --> 00:10:21,480 Speaker 1: try and budget balance the budget. Listen to more Coast 190 00:10:21,480 --> 00:10:24,199 Speaker 1: to Coast a m every weeknight at one a m. 191 00:10:24,320 --> 00:10:27,200 Speaker 1: Eastern and go to Coast to Coast am dot com 192 00:10:27,320 --> 00:10:27,720 Speaker 1: for more