Imax keyser this is the kaiser report and we are talking about the complete absence of gravity thats right gravity no longer exists quite quite quite quite quite quite amazingly so. You know history oh of Financial Markets analysis is filled with people who get the call right way too early and irving fish here may have been right that stock prices have reached what looks like a permanently high plateau of course he said that in 1929 right before they crashed into the bottom of the barrel but maybe you know had he waited around for another 80 years he would have been right so its all about stock prices right hitting new all time highs all the time many times during the course of this year fuelling the trump phenomenon every time his opposition tries to attack him markets make a new all time high and of course everyone likes that look look at markets make new all time highs i like to watch football the weekends i like to watch baseball they like to see that would teams win you know its all very basic winners and losers and the markets are winning and were winning and its a very simple message and theyre making new all time highs and either thats an economic phenomena or theres Something Else going on and if you look at the statistics of the history and the trends it looks like its trading at a phenomenally overextended level. 2 percent of g. D. P. And the stock market which is Warren Buffetts favorite metric to determine valuation overvaluation if you just for stock buybacks is trading for all time record price to earnings multiples right if you were to strip out the stock buybacks which up and told recently were illegal have to do a stock buyback so this looks like nosebleed territory but its been this way now for a few years and there doesnt seem to be any stopped any any any any stop sign in the road it does seem to be any end to this for years id say all through the ninetys and the early 2000 most people in the market still had memories of real markets that you would genuinely that there was no fed to rescue everything so since greenspan in the introduction the put you know it took people a few years to realise that any. Time any even a slight i mean when when markets go down 11 points the fed intervenes like so the fact is that. People now are the opposite of what they used to be they used to expect a cycle now they dont expect a cycle every participant in the market does not expect a cycle to ever be able to fulfill itself so that the fed will always tend to be of course i think that makes it probably more dangerous for when they do lose control or when fewer and fewer actual people are participants in it so the fact is like we know Something Like you know 85 percent of all stocks are owned by the top one percent so its not like everybody is participating and the fact that we keep on pointing to this thing hey look this magical ball of you know is glowing and this means something to you but it doesnt mean anything to anybody of course. Donald trump this is what he looks at he said new yorker this is what is defines his reality and he says down now is that chasm p. 500 closed at record high so he was super happy about it well for most of the American History there was 0 is a competition for capital between labor and wall street main street and wall street theyre always competing for capital and during the reagan years the Reagan Thatcher neoliberal period that we can look back in now look at with some hindsight we see that when reagan fired the air Traffic Controllers any fired the gun to dismantle organized labor in america organized labor has been demolished in america and the average income for americans hasnt budged at all in 2030 years because they were the neutered from their ability to compete for capital labor has no seat at the table labor has no seat at the central bank labor has been abandoned the jobs have been shipped overseas wall street now gets all the capital they get 100 percent of the capital every dollar printed by the fed goes directly to wall street now the bypasses labor bypasses wages just goes to wall street and furthermore the deregulation juggernaut has continued to pace the sense reagan so that all the rules in place to try to keep excesses from developing on wall street have been removed and so the question is is this the end of a cycle its at the top of a bubble or are we going to see dow jones up another 100 percent over the next few years i think everything the way it is now you could see the dow doubling from here because there are the rule of law as been obliterated when it comes to wall street as part of the doctrine put up by eric holder you have Unlimited Money available at 0 percent interest or wall or the fed pays you to borrow money thats not available to anyone else in the labor market and. The trend toward taking everything private as ive spoken about on the show many times to feed just got bought out and the number of mergers and acquisitions is continuing to. To go forward trillions of dollars being taken off the table i mean if were all playing monopoly then all the major pieces on the monopoly board are being owned by one or 2 private equity guys and then everyone else is going to be basically in that one square on the monopoly board called jail were going to get to a headline about the 4 chilean dollars pumping up the stock markets the fed intervening but before we get to that i want to quickly look at this other chart which is the stock market seems to like donald trump more than any president since the 1950 s. Stock Market Performance was number one under f. D. R. Number 2 under truman number 3 under eisenhower and 4 under trump of course f. D. R. s boom was after the crash and the introduction of massive new deal you know giving money to workers to you know build up our infrastructure across america and replant trees and agriculture that had been devastated by the dust bowl number 2 truman he came into power in 1945 right after world war 2 and then he oversaw the Marshall Plan nato the building of nato so its a huge Works Program again i pouring money into lending to europe and also building up the military eisenhower right after truman so again part of that cycle of of this huge money printing for the military and now trump which is just a similar to f. D. R. But the opposite so it makes sense that he would be in the top 4 is like weve had massive money printing and intervention not for the ordinary person but for the oligarchs for the for the wall street kleptocrats it was former chairman of the fed ben bernanke who said the lessons he learned in the Central Banks learned after the crash in the depression were that they have something. All the Printing Press memory had the News Press Conference he made the statement that you know we should have at that point just turn to the few trillion dollars and thats what were doing now thats all we do now were never not go stop printing printing is gone x. Exponential and richer straights are at 0 and so they meet every single problem with more printing and more money more credit and theres nothing stopping a bank from loaning into existence any number of billions of dollars they want to because if they ever make a mistake under the last 20 years whats remarkable is that the creditors get bailed out for making bad loans throughout the entire history of mankind the debtors would be having to face getting bailed out for having made bad borrowings so i think that money printing answer works once and thats the only time you could ever use that because then if you have this be economy that we have now because that all the investors all of wall street is relying completely on this and they know that their buddy at the fed is going to rescue them so theyre front running the entire Financial System thats why all of the gains almost the entirety of all gains and wealth in the United States since 2008 is to the top one percent because theyre front running the policies that their own friends are putting into effect here you see in this headline the 4 chilean dollar force propelling u. S. Stocks to record highs this is from c. N. N. And they say the federal reserves rescue of the overnight lending market appears to be having an unintended side effect its juicing the stock market the September Spike in overnight lending rates revealed that the plumbing of the Financial Markets is broken banks and other Financial Institutions simply didnt have enough cash the fed acting as a plumber started pumping in lots of cash to ease the crunch they claim with unintended consequence no thats the policy you know that its the one been saying for years now the policy is to is Financial Engineering is financial irrigation they let the water flow of money liquid. He go only to their friends on wall street and labor gets nothing and so is it a one trick pony well its a system thats in collapse in other words if you if you have a water main break in your neighborhood and nobody stops it the hole they were gets flooded until the neighborhood is finished right so weve got a leak at the fed to get to a leak of the capitols leaking out theres a lot of capital without any constraint whatsoever theres no down theres no barrier there are no laws there are no rules theres just flooding the pockets of a few people and it will kill the economy thatll get its killing the economy its the economy is dead its dying this is i believe a trick theyre diverting the attention of the media and all participants in the market to look at the rising stock prices because thats easy to create and manipulate whats not easy to hide is a collapse and pile of debt or collapsing banks so that actually the repo markets and you you know we dont have time to go into that here but just google it research it yourself its getting worse and worse and there are signs that theres some major major bank about to collapse or perhaps its collapse and by the time this could even air in addition to temporary cash injections the fed reversed course by promising to purchase bonds a ton of them after months of shrinking its Balance Sheet the fed that would to buy 60000000000. 00 of the treasury bills per month through the spring of 2020 as a result the feds Balance Sheet has swelled by 286000000000. 00 since Early September to 4 point 05 trillion dollars i get the warnings but the warning signs been flashing for 20 years and you know they getting worse and worse and worse but that doesnt mean anything because the system already broke a long time ago and all thats happening is that the people who are benefiting from this free money are not stepping up to stop it no one is going to stop getting the free money and the people that are being destroyed by dont have agency. They dont have political clout to stop it so theres this is just going to continue but as you see donald trump is distracted by the rising stock price many people were very very very simple human beings were simple were simple people as a society were all going to look at that see and we see a celebrating at c. N. N. A celebrating everybodys pointing at that so nobodys going to look at the that actual whats going on in the repo market except for us and of course were going to get blamed for it when it all comes crashing down because its all psychological those say and we psychologically warfare against people in the market so thats in fact a c. N. N. Says part of the impacts could be psychological some investors have been conditioned to buy stocks when the fed is growing its Balance Sheet such a strategy works well in stocks or during the 1st 3 iterations of quantitative easing known as q e one q e 2 and q e 3 whether it should be considered q e 4 or not in the eyes of the markets its just semantics says peter blute far chief Investment Officer obliquely Advisory Group so he says markets look at these increases and theyre going to buy youre going to buy in if the feds Balance Sheet is going up youve got to buy dont fight the fed right so that without any. Rule of law by crime. Thats going up because we need an e. T. F. All right well were going to take a break and when we come back much more coming your way. In this community there are people who believe that its ok to sell fractional who dont like tables its really hard there are no jobs and you see that ive got kids and ask and as a parent. I can come up with a logical argument theres a lot of conflict in the good. Between the 2 most of the conflicts i would say. Theyre. Close one on each others each other is good because the state of california alone makes 6000000000. 00 a year of the prison complex just to get some 25. 00 where. You dont care. Welcome back to the kaiser report im max kaiser you know back in 2012 a film of paired called the 4 horsemen and it was incredibly popular and it continues to be popular i knew to this day because it outlines the big problems facing the globe both economically and socially the director of that film is with us right now ross asked prof welcome back to the kaiser report thanks for having me ross youve just returned from a trip to new york any observations to make of what you saw in the greatest any on earth we try make a trip twice a year to make programs because when youre broke and you dont speak to americans or search britain or it says it makes your job a lot easier so are you going to be some really excellent people one of the things that was really striking for me things firstly the infrastructure around new york really really needs some attention and it just the same. That its getting that now whether thats political will or just miss out misallocated capital you know but firstly the infrastructure is tired 2nd thing is the public she writes that ive seen noticeable difference over the last 121218 months and also sit in a School Different empty units i know retail is getting a battering but its mold and so the 3 things are still what i would say is the food its amazing the people are absolutely spectacular and the Customer Service well when you come back to london having how dacosta so this its very difficult sort of Climate Science now whats interesting is that in new york city you have projects like the highline which is on the west side of manhattan they converted to an old rail track that connect the warehouses in the meat packing district to a public park and they spent about a 1000000000. 00 doing so and then all the real state along. On this 2025 block stretch on the west side of manhattan the laurel west side has been blown and turned into a multi 1000000000. 00 development has been a huge boom of course after 911. 00 the downtown area in the Washington Area as had multiple building projects theres a huge boom there are the Billionaires Row on Central Park South which has the more billionaires than one building probably anywhere else in the world that is a boom but at the same time the the subway system is in the chaos falling apart they cant seem to build any decent subway Public Transportation is in disarray so it seems like its an in a capsule ation of whats going on in the rest of the country and at a rest of the world theres a concentration of billionaires at the top and theyve got luxury skies pentasa in the sky everyone else aims of paying us now funding has no funding for transportation is now a funny accent or a it is that a Fair Assessment you think. You are the guys that birthed a guy called henry george and he talked about the line question this is exactly the same thing happened in london with the cheap illegal and and as soon as you put Public Infrastructure in place which is page full of the tax code what you do is uplift all the land values so that piece of Public Infrastructure serves now if you will example of doing it properly and doing it well and having the infrastructure pay for itself hong kong did it by using loans x. Now if youre not going to tax unearned increment. Lift and learn values youre going to get a billionaire class that you go and i was the soundest says everybody and that is a policy error well if he wants. An area to focus on to reform the tax system to capture the understanding criminal and then socialize that socialize those rents then infrastructure is exactly the place. We should look right you mentioned one kind there and of course up until 9097 it was part of britain our am some kind of state of britain and then they they changed in the pan and now youve got a situation there where they had enormous wealth theyve had property prices bombing but that youve also had social unrest and youve had an enormous pushback by folks on the street they just had an election 75 percent of the states are now held by the Democracy Movement what do you see happening in han kang is that is the death a good theyre what we call the global insurrection against banker occupation our job oh they they is this again is this a flashpoint in the global struggle of the people versus the banks stars ross yeah but look its happening everywhere so theres some wind in chile the famous sign the woman was holding is saying near liberalism was born and this is where it will die well she got a new liberal laws the color you then start to get the billionaire class and all the Socio Economic indicators going the wrong direction because we know the rules in free. Society in the near liberals have. Only world this ideology which is inherently ansi human. But its very pro banks as you say so as soon as you get a new liberal arts economy youre going to get this on going so decades and hong kong is just one canary in the mine chile is another south America Cross