[OTE131] On the Edge with Charles Hugh Smith

We interview Charles Hugh Smith about the global economic meltdown!

31 comments on “[OTE131] On the Edge with Charles Hugh Smith
  1. Silverstreamist says:

    Chinese ratings agency threatens US with new debt downgrade

    • Head of ratings agency issues warning in TV interview
    • Fears of renewed budget deadlock in Washington


  2. What-me-worry? says:

    Is that “….capital is free to roam….” or “capital is free to Rome….” ?

  3. What-me-worry? says:

    Or both? i.e. roam back to Rome.

  4. don middleton says:

    A very pleasurable interview.
    Currency wars might be a ruse, thank you Charles.
    As for propaganda, “the invisible hand” being “the market” was the greatest coup in mind control ever perpetrated if Smith meant “Providence”. Acorn plus providence equal oak 🙂

  5. MirrorMirror says:


    Remember all that Nuclear Waste dumped in the Oceans ?

    … coming back to haunt us ? :



    2:46 mins

  6. Angelo says:


  7. Van says:

    There’s a rumor going around that “Lord Monckton” is Borat, Sacha Cohen’s greatest creation, but…I was thinking maybe, just maybe, Sacha has gone even further…
    Borat is “Max Keiser”–ha ha “That’s niiice”.

  8. mzchief says:

    Finally! Thank you Max and Charles for addressing this topic and cutting through the key myths global financialization perpetuates to get their way.

    OT– The shadow international government wants to bring back cluster bombs (http://bit.ly/v4Tymh) and continue the promotion of genocide of an indigenous people (http://bit.ly/v5hxLq). We are very near 0.5 million signers who say “NO!” to both just in time to present the massive petitions to G8/G20 frontpersons in time for Monday’s meeting in Geneva. Let’s do it!

  9. swell says:

    The depths that they plumbed their discussion, the eloquence with turn of phrase striking such clarity, indeed, made their conversation a positive delight.

  10. whitemale08 says:

    Thanks Max for another FANTASTIC INTERVIEW!!!

    One of the best summaries of the current crisis and the simple solutions to deal with it.

  11. wtf says:

    Thanks Max for another insightful, brilliant interview and guest.

  12. wtf says:

    BTW – What’s all this about China’s rating agencies?!?! I thought all those manipulators (Moodys, S&P) were in NY?

  13. Jayme says:

    A 2000 page bill is a bad joke. The U.S. Constitution is only about 7,000 WORDS long. NO one even reads most of these bills and it is unethical/immoral (non-representative and fraudulent) to sign these documents that have not even been read by those signing. Doing so or requesting someone to do so is a crime against the people.

  14. Sacramento Joe says:


    Don’t you think Charles Hugh Smith looks like the brother of Steve Keen? In ideology as well. I have saved this interview in favorites….

    Keep spreading the truth!



  15. Jayme says:

    Nice interview.

    So, if we go into debt Jubilee, will we still see currency collapse (or re-valuation), a gold standard, and rising prices of precious metals?

    Personally, I’d rather see a better economy than higher prices for gold and silver. Most people I know don’t have any.

  16. Evolutis says:

    The monetary pig pushes us down steep, dark back alleys that we cannot navigate. When in the midst of all the darkness one thinks of sleep; That’s right, roll over, pull the blankets up Dr. Bliss has the intravenous propofol drip. do not connect the dots, do not deal with the required triage.

    There is talk of debt forgiveness … trust me I’m a doctor, yep that sends the right message, now doesn’t it? LOL The absurdity of this entanglement makes things seem even darker … trust me I’m a doctor I have PHD in economics.

  17. stacyherbert says:

    Jayme – rising prices of precious metals is collapsing (perceived) value of the fiat currency in which it is priced

  18. ronron says:

    best guest in weeks.

    The best way to make a saucepan, is to ‘explosion’ form annealed thin Silver sheet into a saucepan profile, abraid the outer suface (ultra-fine crushed glass shotblast) then “Electroform” a thick coat of Copper plate to the exterior. Rivet a brass handle (Gold plated if U like) …That way minute quantities of medicinal Silver is incorporated into every meal cooked with that Silver-lined saucepan….It would surely be a best seller at Christmas, and make a nice present to put under the tree! Sherbert might like a set herself?

  20. BTW ~ I note The Indian Institute of Technology “I.I.T. Bombay, have conducted extensive research into Explosive Forming….Also aqueous jet inert-cathode (carbon or Titanium) can deploy regular Copper Sulphate solution (weak sulphuric acid) as the ‘electro-forming’ method, A polythene tank filled with scrap bright copper wire replenishes the Copper Sulphate in a continuous process. (Polyester Filtration essential) This is an ideal ‘Low-Tech & ‘Low Tooling Cost’ cottage industry, suitable for India. Explosion forming as you can read, provides superlative dimensional integrity. The ‘explosion’ itself, can be generated by a high electrical discharge under water, as illustrated. ….Any entrepreneurs in India reading this please take note.

  21. Mot of the people that seem to have called themselves neo-classical liberals are nothing like the classical liberals.

  22. SilverCondom says:

    Stacy:”rising prices of precious metals is collapsing (perceived) value of the fiat currency in which it is priced”

    I noticed lately that the PMs prices move in the same direction as the DOW.
    PMs paper market took over price discovery mechanism for Physical PMs?!

  23. bammbamm says:

    Roma ibi tibi sedes ibi tibi amor

    At Rome you live; at Rome you love. It’s a Latin palindrome.

  24. Ricin3000 says:

    Great OTE. You know, I sometimes like OTE better than KR because it goes more in dept (no,no, not debt!).

    Happy to hear the word that I’ve tried to get resonating… JUBILEE!

    Not much more to add really. Best wishes to all,


  25. Jayme says:

    Thanks Stacy.

  26. Got Silver? says:

    In the same direction of the DOW. That would be because the SLV and GLD thangs are just paper stocks and not generally redeemable for physical. I notice the only reason the USD goes up is safe haven. Must be frustrating to buy USD when you know it produces nothing and employs no one. Why would people buy paper when the problem is with paper. geez. Now if the “Industrials” would actually do something industrious there might be some jobs. oh! almost forgot…over at Harvey Organ’s today it mentioned there are 3 million tech and brainy guy jobs going unfilled in America. ‘Shoulda stayed in College.” I don’t get it tho’ there must be some kid that took a decent course like Chemical Engineering.

  27. Danny Cunnington says:

    I like the term debt jubilee. Even F. Beard is vindicated as the principle of jubilee is written in the old testament book of Leviticus. The principle applied by the ancients roughly followed a formula of never allowing repayment terms for loans to go past 7 years. The parasites used “rollover” to try and get round this. The answer was to announce time periods in which debt went to zero with no exceptions. Silver denominated debt went to zero every 25 years and gold based debt every 50 years.

    What this meant was that oligarchs could never consolidate enough to become all powerful through debt enslavement which was based on extraction, to the detriment of production. It also meant that a class of financial operators living off the backs of the oligarchs in their attempt to become “Gods on earth” could not consolidate.

    Back then all money was a commodity money. The hard exchange in trade was metals. the soft currency were goods such as stored grains, salt and various oils and spices. Most of the local producers of the soft currency consumed them and took opportunities provided by surplus to acquire a hard currency. The reason for this was that the hard currency was needed for “exotic” imports which the local producers couldn’t replicate but desired.

    The soft currencies were only really practical on a local level and needed to be made portable. You can still look at the volume measurement of a bushel and then break it down into measurement of grains and you will see that the same measurements exist in gold and silver.

    I advocate debt jubilee and the removal of banksters and the failure of these institutions which are unfit to act beneficially to society as they have become corrupt and self serving.

    I have little to gain personally from debt jubilee. I saw this shitstorm coming down from about 2004 and took action. My whole plan was to get out of debt and build surpluses. If we have a debt jubilee, some neighbours with nice large houses and a couple of nice cars will be big winners. I welcome that even though I’m on the debt free part of the trade. The reason is because it’s not enough for me to be free through prepping up. I can’t really be free unless everyone else is.

  28. Al Kyder says:

    Ah the Washington Consensus. This is now losing traction in China as the Rightists are being squeezed out by the New Left.

    Persuading people they are middle class, pr “upper Middle Class” is the job of corporate media.

    Turning the media into a global business did not produce the kind of quality journalism and social responsibility that Adam Smith and Hayek describe the hidden hand producing.

      Keynes economics whose starting point was that not all future events could be reduced to measurable risk implies that mathematical models can be used to predict the economy. The Asian knows its like horse racing. That its an act of faith. This is the gulf between east and west. For a Taoist uncertainty is all that is really genuine; the Taoist would expect “huge systemic mistakes” to be more likely and common.

    Advantage China !

  29. Juan Moment says:

    Great interview indeed, Charles Hugh Smith always worth listening to. Thanx Max for bringing him on every so often.

    On the issue of debt jubilee though, I still can’t see it happen. For government debt, yes, but for every debtor, be that student loan, mortgage, overdrawn bank accounts, credit cards, car loans, monies owed to the tax offices, to have their slate wiped clean whilst at the same time be able to keep all assets purchased with that debt, no way.

    Again let me put forward the notion that a debt jubilee of that kind would encourage reckless borrowing and send the complete wrong signal.

    Take the example of two work colleagues, Tom and Dick, both on the same low income and planning to buy a house. Tom recognizes that real estate in his area is over priced and with job security not being all that rosy and considering his meager income, he concludes that it would be best for him and the family to sit on the side lines, don’t take on huge debt and and keep renting instead. Dick on the other hand thinks so what, I want my house now, not when prices have dropped to affordable levels in 5 years, if I lose my job I just get another one and the low doc interest only mortgage the broker from down the road offered is just too good. So he buys himself the $400’000 house.

    Bang, three years later, both lost their job, neither can find a new one. Dick’s house has dropped in value by $50k, he is in arrears with the mortgage, stopped paying months ago. Tom is still renting the same modest place and owes no one a cent.

    Now, coz too many mentally challenged politicians and their financially ignorant counterparts in the private citizenry took out way more debt than they could ever afford, the solution bandied around is a full blown debt jubilee, press the global reset button on all balance sheets. Hurray, all is forgiven, drunk as skunk debtors throwing massive jubilee parties, and crushed creditors are left holding the bag.

    What lesson will Tom take away from this when he makes his next rent payment, and how will that lesson be different to Dick’s who now 100% debt free owns a $350k house, and what is the most likely conclusion a third party observer will come to?

    I maintain that a general debt jubilee would reward irresponsible behavior, manifest economic injustice and set a modern day precedent for the easy way out, making one wonder how long the cycle will be before the whole reset procedure will need to be used again. Blow up bubble, forgive debt, blow up bubble, forgive debt, rinse and repeat till kingdom come.

  30. cgould says:

    globalization benefits every 0ne %

  31. walbury says:

    I’ve got this great new idea!! It’s called capitalism! If a company makes an incompetant decision and can no longer can pay its way it ceases to trade! Yep, it goes broke, kind of like (in fact a lot like!) PanAm. And better run companies step up to the plate and take up the slack. In fact these better run companies GET A CHANCE to step up to the plate.
    Don’t ask what happens if we let it go broke – ask how much you
    are hurting everyone by not letting the more competant have a shot when it does go broke.