Theres nasty accounting fraud going on and all kinds of wall street derivatives tricks this is a real or just a fake ileum high exactly so stock markets hit all time high. And we know as we were covering a here the fed continues to intervene up to 250000000000. 00 a day and the repo market so is there disaster or is there not why or why is this wall street class right across the river here why are they so coddled why are they such big babies there was actually a banker by the way on the news recently on kuperman he literally started crying on television because of Elizabeth Warren coming after his money. Losing. Money because the billions of the stuff that goes up in the when she did this is who this guy is i would say discrete to the male gender hes a disgrace to wall street is a disgrace as an american so here we have a situation whereby the Federal Reserve bank of new york right here is intervening daily in the repo markets the fed in washington d. C. Is also continuing some 2 we sort of measures we dont know. The stock markets are hitting all time highs and yet you look at the most successful investor ever Warren BuffettBerkshire Hathaways cash pile climbed to a record 128000000000. 00 in cash after reported a 14 percent jump and profit obviously cash is dead money if its just sitting there in a 0 percent Interest Rate war old hes not putting it to use hes not able to find i guess things to invest in but also on the other hand the fed is printing so much money so fast as processor jumping so fast like its hard to even spend so this is like that the end game of this wealth inequality theres but theres that at the bottom of it we have a black hole like the people running faster and faster just the same place and the debt keeps on catching up with them and their Interest Rates are too. 20 percent and theyre falling sinker faster and faster and today on the other side of the Balance Sheet of course is the top and theyre there earning so much money that they cant possibly spend it as we recently covered this 4. 00 trillion dollars this is 128000000000. 00 of it on purpose or how to raise Balance Sheet they cant spend it because its just its just sitting there doing nothing for buffett is bored you know leon cooperman is bored you know when you play monopoly if you own a certain the number of properties theres nothing to do except wait for everyone else to go bankrupt so theyre just Warren Buffett or linux superman theyre just sitting in their office theyre just collecting all the rent theyre around cas there and they dont build anything they dont invent anything they dont add anything to the economy theyre just raunchy asr oligarchs theyre kleptocrats and theyre bored theyre just waiting for everyone else to go bankrupt thats the only thing thats thats the only play left in the global Monopoly Game of which america is the boardwalk and park place certainly Berkshire Hathaway has missed out the stock markets on its here tear i saw somebody i think it was josh brown somebody in the Investment Community here in new york was saying like this is one of the most hated ever all time highs ive ever seen usually theres giant euphoria weve seen it many times people are ecstatic and it can never go down here you have a lot of very very successful big bankers very well known list of the stock market are all worried so i guess you always say stocks are climbing a wall of worry people are generally worried but sometimes when you have these chilling dollar valuations and you have the fed having gone through the printing of at this point over the length of this bull market which started in 1982 i mean suppose they probably have printed close to 100. 00 trillion dollars of cash and given it to their friends on wall street theyre friends of the fed and you just enter a period of lethargy theres really literally nothing left to do theres nothing left to prove theres no corporation that. Hasnt been bought out or merged or acquired in some way and its just a matter of waiting for either a the rebels to come with the torches and the nooses or be to be carried out on a stretcher and put in a box somewhere and forgotten about so heres a tweet from melton to mirrors and this is referring to the Berkshire Hathaway 128000000000. 00 cash cow just cast 0 percent even losing because of them flay ssion 3 of the 10 most valuable Public Companies in the world are holding more than 10 percent of their market cap as cash something something about opportunity cost of capital something shes referring to 0 hedges tweet about this and they show Berkshire Hathaways pile of cash theyre passing apple and google now so those are the other big giant holders of cash americas capitalism and capitalism refers to capital and capital of its not circulating is worthless capital sitting in a bank account of Berkshire Hathaway is like a rotting festering pile of horse manure in lust you spread it out over the field you dont do anything productive with them a new or so warren buffet is literally sitting in a barn full of stinky manure cash holding his nose playing pivotal winks with Charlie Munger whatever they do over there and dying from suffocating of the stench of his own cash in the fed has intervened mostly for wall street and all of Berkshire Hathaways companies by the way all the Insurance Companies and all the other banks wells fargo what cobi all the stuff that collapsed during the financial collapse and as we said you know we have negative Interest Rates so many things cant be valued anymore so how do you as an investor even know how to allocate cash if youre a Value Investor like Warren Buffett how in the as you point out Warren Buffett is underperforming the s. And p. Underperform because in a way if you simply bought or index fund like over their bank are with no fees he would be out. They perform himself but that because he thinks hes smart hes underperforming the s. And p. Or i suggest as a call the reverse hunger games that reverse hunger games are randomly picked 10. 00 to 15. 00 billionaires every year and strip them of everything get him down to 0 and force him out there naked into the world of commerce and see if they can build it up from scratch again introduce risk back into the American Capital system once you have a certain amount of money theres no more risk youre just clipping coupons for finity and you have no stake in the game whatsoever think Warren Buffett has any risk at this point no hes just aggregating wealth risk list only thats not capitalism thats a monarchy weve got a new market aristocracy in america i say you introduced the reverse hunger games randomly picked leone kuperman stripped him of everything stripped him naked and force him into the inner city and say heres mark i see what you can do now well also like what i was saying as well as Warren Buffett calls himself a Value Investor thats a certain sort of investor and that just looks for value long term value theyre going to hold for 5 years 10 years 15 years most investors you see on c. M. B. C. Are not Value Investors theyre tracing chasing the trends their momentum traders and theyre trading in and out theyre High Frequency traders most trades are from High Frequency traders Warren Buffett is a Value Investor but value the way to understand value is you need time to have some value so if time no longer has value because of all the Interest Rate the negative Interest Rates around the world it becomes very difficult to even be a Value Investor because all there is is the fake stuff the momentum whatever the fed is creating right go backwards in time to a time when these billionaires were just doing clipper outs and the selling sewed on the street for nickels and see how they can regain their wealth from today in a world of negative Interest Rates because as you point out if you were to put Warren Buffett. And say explain the Value Investing in a world of negative Interest Rates i will bet you any amount of cash or he could say absolutely nothing they would be mute if theres nothing to say the value has a long gone the horses jump the fence j. P. Morgan the biggest bank in america can we be in a situation where like all of these unicorns in Silicon Valley they were held privately they were unicorns on paper only and then they tried to bring it to market and resell investors this time around right were not paying those numbers. With bitcoin it was the Retail Investor that got in way before bankers here we have a situation where stock markets everything seems to be booming Consumer Spending is up everything looks great but j. P. Morgan the biggest bank in america who. If they if jamie dimon cries the fed really answers the phone and they start bailing out stuff but j. P. Morgan pours 130000000000. 00 of excess cash into bonds and major shift quote the bank is acting like the next recession is here everything the bank is doing points that way theyre looking like they think theres a recession coming they could be wrong who knows right now theyre acting like that pouring this money on the Business Cycle which is you 5 in a recession would be up and thats over were now in a period where j. P. Morgan and others like buffet and leon cooperman are holding up the drawbridge the castle is being closed everyone who is not a billionaire right now is going to be left into the no mans land and are going to be fighting for every scrap of food you can possibly get the oligarchs and it started with 911 this culminating in the air 2020 are calling up the drawbridge and leaving everyone else out there whos not a billionaire to fight amongst themselves for the remaining crumbs and cans of soup of course a lot of people are blaming this exact movement j. P. Morgan for causing the turmoil in the repo market so that is one thing that can happen is j. P. Morgan is the way all they were the london whale there the american whale there the whale in hong kong theyre the whale everywhere around the world so if they pull liquidity from the market as they have a huge cash piles well they could cause everything to crash if they are the market essentially i know you have in the past have been the market and its a bad place to be right well look in j. P. Morgan again proving the point and just so its not a. Liquidity crisis of insolvency crisis j. P. Morgan is insolvent as is Deutsche Bank its not a liquidity issue there are insolvent they have that are a 1000 times greater than any possibility of ever paying well exactly because the you know j. P. Morgan is the largest creditor in the world they all they own us they own americans and americans are in debt and they cant pay anything so essentially thats why theyre also bankrupt j. P. Morgan is insolvent that your bank is insolvent all Major Money Center Banks in the world are insolvent and all the money printing in the world is not going to solve the problem because at the end of the day were running out of helium well go shop thats what donald trump says oh fabulous well dont go away stay right there coming back in a minute. Oh. And very well might continue watching on since last. Welcome back to the kaiser report im not at cern professor steve cain is the author of the instant classic deep funky economics hes also got a patriotic page where you basically are like you know taking lessons right from professor steve kean steve welcome back to be him why the patriots ounds call its going very well its a good its may be a new public intellectual without having to worry about a Single University bureaucrat or University Meeting and i can research what i want to research and i can do it in europe where most of the activity in both economics and environment is happening and thats those much 2 areas a lot of really im very grateful my patron you know its fantastic and lot of people signed up to your patron for steve k. And its a heck of a deal now tell us mr mr professor steve king the u. S. National debt is now 23. 00 trillion dollars of past 22. 00 trillion in february reading about a trillion dollars every 8 or 9 months i like to move my shoulders around i say that as the chilean dollar debt dance is a sustainable whats going on here yes it is. We obsess about the level of government did we ignore private debt and as myself and Michael Hudson in a small band of rana go to college in saying for a long long time Government Debt is not a problem private debt is the reason being that the government owns its own bank and it is creating when its creating dead its tiny creating money but it spends into the into the physical economy we use government not just government created to put government mandated money as a form of commerce so we need it to be produced boss someone the government produces of the mirror image of that is the debt that it came the lights on the other hand when we borrow money if you borrow money from a bank the money they give you comes with a debt you owe back to them when the government spends money the government accumulates the debt you get the cash so part of a functional capitalist economy is money created by the guy. And theres all sorts of austrian projects of money etc etc but capitalist commas con happen without money and the government creating money creates money which the receiver gets without debt the government carries the day it doesnt matter that the government created money loses its purchasing power continuous this is one of the hassles people have if they want to think about the functions of money which will get money as a unit of account as a store of value and a means of crime and we obsess about the store of value but in fact the most important function of money is that it is the means of payment now if you obsess about the store of value you worry about money losing its value of atomics the trick cetera but if money is losing its value 1. 00 thing youll do as a result of that is spend it and part of that spending is actually whats stimulates Economic Activity hoarding money means you get less exactly productivity out of money so a certain degree of depreciation of money over time actually encourages spending you get obsessed with about it has a store of value you dont spend you get a lodge amount of cash and 0 economy but a lot of people critical of the fact that money is loaned into existence along these lines that the basis of capitalism should be capital and capital is something that accrues an interest that people are putting in the bank and therefore using too fractional reserve out in the case of the fractional reserve Banking System so without capital you cant really have capitalism so what youre describing it doesnt sound like capitalism per se what how would you describe that system scrub of the real world i mean a lot of people say we should have gold should be money bitcoin should be money all these other old cent is money because they dont like 1st of all government being involved in creative mining and they also dont like dip being opposed to government it is not a factor the corporate debt the bank debt is a factor here and debt of this of the of the private sector going up is a problem. And we see that trend exacerbating all over the world to this day in the sense we know check in place for that is the dangerous one because its a level of private which is partly private gets stimulates the economy because when you borrow money you dont borrow for the ship pleasure of being in debt you borrow to spend and that spending should be the top of Capital Spending or talking about where you borrow the money to establish a business to make goods and services to sulfa money and thats what gives you a functioning circulating capitalist economy instead what weve got now is bankers lending money for us to borrow and go and buy an assett and drive its process up and speculate on the process sold and that gives us a form of Financial Capital rather than a healthy industrial capitalism that i want to get back to and that process of of borrowing money to gamble on asset processes has driven us into the hospital of private debt in history so you whining about 22 trillion with those with the government did it but i think the level of of for profit didnt america is not to the dead of the nonfinancial American Economy households and Industrial Companies to the Financial Sector is 150 percent of g. D. P. Which means its about 40 trillion dollars so the real worry is level of private debt thats ignored by conventional economists and thats what actually causes the crossties of capitalism. And to manage this pile of debt theres an urgency to keep rates low to go to the 0 bound and in some places in the world to go negative now youre a guy whos in a book called the banking economics an