360 Horizon: Bonds

Stacy and Max start the show with a look at the world's feudal lords in a rentier society: Banksters. They look at massive "rent seeking" and "financial dislocation" as the money lenders chase new alpha through higher rents of their massive REO inventory.

One beautiful phrase which Max uses: he calls Zero Interest Rates, which excludes 99.9% of us from the benefits within, as "Financial Jim Crow Laws".

As Max explains, if you're on the inside of Zero Interest Rates, or the Big House (as he aptly calls it) you're the first in line borrower of cheap money at Zero Interest. But if you're one of the 99%ers, you're out there in the fields, fighting for your meals, shopping at the "company store" (i.e. Walmart, Tedsco, etc.) you're going too pay through the nose with "interest charged" to buy your necessities of life.

Max also covers the "Bond Bubble" and what is about to happen in that realm when the bubble pops. He claims that KKR's move into offering new products to low net individuals is "a bell being rung" at the market top for the bond bubble. As he expalins, KKR is taking its long term security risk, packaging it for a gullible public of small investors, and the public will be, in essence, buying into KKR's long term interest rate risk. Max claims anyone buying into this new KKR scheme will be losing 75 to 90% of their investment, while KKR's risk will be insulated by taxpayers.

The last part of the show, Max interviews Ian Williams a specialist in gold/silver who says you want to buy silver in the coming precious metals bull market. Watch the video to see Williams reasoning.