Wealthy and the connected so when weve already covered the trillions going to the banks instantly and the fact that the ordinary person is struggling to read well you know waiting desperately for the stimulus checks to arrive to them the measly little ones you know when the fed is buying these collateralized Loan Obligations you have to realize that 81 percent of them are owned just by j. P. Morgan Wells Fargo Bank of america and citibank just those 4 banks own 81 percent of it so those are the guys getting bailed out by the fed in the meantime u. S. Housing j. P. Morgan chase to raise mortgage borrowing standards as Economic Outlook darkens it just got harder to buy a house from tuesday this week customers applying for a new mortgage will need a credit score of at least 700. 00 and will be acquired to make a down payment equal to 20 percent of the homes value but this is the mantra. Saying concept one of fairness as it relates to the economy and its not really baked into the american system is not designed to be fair because fair is what is fair for one person is unfair to another person and thats a highly subjective term what america relies on is free market capitalism relies on competition and that if you are successful competing then you succeed remember in america possession is 9 tenths of the law now if you dont compete successfully then you get thrown out of the game basically but thats the way it is in the United States and. Having said that when you talk about banks being bailed out by the fed and you talk about all of the high yield bonds being owned by the major banks and they are being bailed out thats clearly unfair but the response cant be that we need to institute more laws because we already have laws theyre breaking the laws in the case of this s. P. V. With that high yielding e. T. F. J m k they broke the law so theres a fairness implies and a justice said this and hes part of the judicial system of courts and laws if breaking the laws is without penalty then the doesnt make sense to introduce new laws in terms of the fairness ok these banks took on bad debts that mostly in the fracking sector and they were doing their part because remember Time Magazine said america the saudi arabia of america essentially that were not one member were no produce there well thats because of all the patriotic investment from these banks into the fracking sector they lost money. Whole time but they were doing it for patriotic reasons and they were getting paid the yield right during these low Interest Rate times and they were me i made a bet a gamble that this risk would pay off well it didnt and now the fed is bailing them out the same thing happened especially since the financial crisis of 2008 is the ordinary american said why need to reeducate myself i need to get retrain myself and you know find a way in this knowledge economy get a degree ok its going to cost 150000. 00 but you know what ill be able to get a job with so they racked up 150000. 00 debt when they graduated from university and lo and behold it all falls apart j. P. Morgan Wells Fargo Citibank Bank of america have their bad debts bailed out the same ordinary 340000000 americans go oh cool so the thankful for my government and the central bank bailing out are bad bets heres my bad. Sorry we dont have enough money for that so that they feel like the ordinary person feels like this is unfair somehow thats jamie diamond you know bad bets get bailed out over and over every single time it crashes my bow bad bets never do yes and thats why on this show kaiser report we have put forward the notion that you will never achieve fairness in the economy thats based on money if its controlled by banks stores and central bankers who can print 10000 for them and one for you and it doesnt and they are free to break any law they want the only riposte is bitcoin and gold particularly big coins bitcoin disenfranchises and d. Capitalizes im not for decapitating anybody but i am for be capitalizing all the wall street bankers by shifting the center of gravity of money from the dollar and fear to bitcoin and thats perfectly within our purview within the current scope as global citizens who wish Justice Justice through free competition and hard money thats the only justice that matters thats sustainable thats real that doesnt rely on politicians venal politicians that are so easily bought and no politician is easier to buy in the world than the american politician you can get a lot changed in america for 100000. 00 European Countries a cost a lot more to bribe a politician in america regarding this j. P. Morgan policy of making it more difficult to get a mortgage heres what a former manager at Goldman Sachs says j. P. Morgan made it harder to get a mortgage today raising borrowing standards to 20 percent down with the Credit Rating of 700. 00 plus thats interesting because boeing has a junk Credit Rating a credit score of 500. 00 and theyre allowed to borrow billions from banks and governor. I revolution is coming funny no its amazing put in the context of again central banking because central banking was supposed to be the lender of last resort and central banking was a buffer to the system so in moments of extremists like a pandemic it should be easier for people to borrow money and to acquire or to preserve wealth or to buy a house but instead its become more difficult because the banks of the Central Banks are heading toward feudalism and well talk to dr Michael Hudson about that later meanwhile look at the Interest Rates for credit cards the money that is borrowed by big banks is 0 it is sometimes less than 0 j. P. Morgan one point last year was paid to borrow money every time they borrowed 500000000000. 00 they were in charge interest on it they were paid interest on it meanwhile credit cards are still on average 20 percent they never changed and yet those that matrix of interest starting with the fed funds that discount rate and the prime Rate Mortgage rate should all be moving in tandem with each other the fed funds go down thats the purpose of a central bank so it shows quite clearly that the central bank is not operating on any level of adequacy on any in any sense of what it was chartered to do its now been coopted entirely by the kleptocrats who are simply using it to steal assets by printing money and then buying those assets with the free money they get and they have no interest attached to that money disenfranchising and creating a new serf class or peasant class in america when youre about 1x7w2xw people unemployed thats great because those we need those peasants to do peasant jobs but we dont need a middle class in the not not when the 3 have trillion thats collected in taxes is used as towards the garbage compare that 8102030. 00 trillion thats printed to buy out assets on behalf of the club to kratz. So remember what i said is like it started back in 1007 with a little bit of intervention and then it goes to a little bit more intervention and 2002001 and then of course even more intervention in 2008 and now were in 2020 and so if you look at this round of global q. E. As just unprecedented and you can see this is 2020 versus 2008 huge difference of of magnitude orders of magnitude it gets exponential youre going to see this exponential growth in the assets being taken private being taken away weve seen that with the share buybacks member of the Federal Reserve is supposed to regulate these banks and theyre supposed to somebody supposed to oversee these corporations and go ahead. I would like put out my next bill that i was down but that will be interesting to look at you cant say for a policy scheme songs go higher well in fact you see that little tiny taper they try their little tiny tiny tiny taper and it caused it to help caused this collapse we just saw well need of Goldman Sachs say that j. P. Morgan is toughening standards to the ordinary person but boeing is junk redid and theyre getting free cash well boeing is junk rated because they hollowed out their Balance Sheet through share buybacks 100000000000. 00 in the past 5 to 6 years and that led to them being unable to build airplanes that fly because they had to fire all the engineers in order to make all those share buybacks and now i want to point out that something that youve said you know because they are getting bailed out boeing airlines and all these other industries that hollowed out their Balance Sheet through share buybacks well they are being bailed out and theres theoretically theres no way to enforce this theres no enforcement clause but theyre supposed to. Share buybacks now you say stock buybacks wont stop theyll be rebranded my guess is. Rebranding is share retirement programs leveraged earnings programs opportunity enhancements earnings inflation see programs net result exactly the same a stock buybacks equally fraudulent. Stock buybacks wont stop theres some talk on mainstream Financial News like oh we cant possibly just keep buying back our stock and just use that money to pay ourselves dividends and reward ourselves huge increases in salaries oh thats very unseemly so they will break branded and theyll say well its earnings and passed on programs so on c n b c theyll say this week you know Berkshire Hathaway decided to engage in earnings and has been programmed and they expect to have an enhanced earnings this quarter but they wont mention the stock buyback by name but that will be the Earnings Announcement program also called Something Else and they socalled Progressive Press will never mention it because they dont keep track of the stuff and of course berkshire never paid out on the covert insurance and even though theyre a Big Insurance Company but all the major stocks in america have put on catastrophe so theyve made out on their insurance. Sector anyway were going to take a break and when we come back much more coming your way. Join me every day on the alex salmond sure and ill be speaking to the world of politics business im sure business. So weve got to do is identify the threats that we have its crazy. Let it be an arms race. Spearing dramatic to follow only. I dont see how that strategy will be successful very critical time to sit down and talk. Humanity is on the edge of a precipice thanks to continuing destruction of the natural wild. Region seem laid out a lot of bills lots of. Losing myself and only if you. Let them everything you can hold up. For but. I think that all of the war. Or the. Dealing in the muslim world as a little boy can sit around and stuff and shit the same thing that disables the. Human activity has brought us to the brink of the worlds 6th major extinction of it and the people in this film just come take it anymore. Welcome back to the kaiser report time now to go to dr Michael Hudson economist historian author and blogger dr hudson welcome back it could be back next debt jubilee is finally happening only its exclusively for headphones of private equity your thoughts on the trillions of dollars of bailout for bankers and corporations i think they have a wish list of all sorts of things that their lawyers lobbyists grown up and just hold out. Their own approaches and their court folios and paste. Coronavirus billowed on it but. Build out disease isnt bailed out the workers arent bailed out the Small Businesses arent bailed out as you say its all going to the Major Campaign contributors and they dont replace a wall straight. Laws and rules dont apply. If wall street is caught breaking the law they bypassed small fine or they rewrite the law heres a good example of it the feds Balance Sheet has passed 6 trillion dollars and theyve set up in s. P. V. A special Purpose Vehicle to buy a high yield junk bond e. T. F. Thats an Exchange Traded fund with the stock Ticker Symbol j. And k. For junk now this was completely illegal for the fed to do this but they decided to set up this s. P. V. On the side to bypass the law fracking industry had jumped by boat to go under your head to rescue not the fricker theyre not rescued you have to rescue the investors in the directors you have to rescue the bankers and the bondholders and thats the model when all of this is. Sheila bair said in the obama bailout its all about. What about boss the ad who said if theres looting at the top expect looting at the bottom i mean theyre just. Breaking the law. I mean if i go into the liquor store and i rob all the money and then i say well no actually i put the money into a separate bag held by a banker and they put s. P. V. On the bag so therefore its legal why do they think that this kind of example of wholesale law breaking and say and favor a is good for society and dr michael lots of you know what president nixon said when the president does that its not breaking the law and now i read it sort of taken over the presidency and the financing for the whole 3000. 00 is not breaking the law the house Tax Writing Committee is. A democrat not representative neil and he said the 1st thing you did was go to look. You know robert rubin what to do and his major backers are the Financial Sector the securities and Investment Real Estate so well there are simply you know. The congress can spend basically a lot o. And theyre in the position the president thinks they can break the law if nobody stops you over there in japan they invented this idea of quantitative easing theyve been leading the world and lowering rates down to effectively 0 their size their Balance Sheet on the bank of japan us out more than 100 percent of the g. D. P. Of japan and america the balance shape garbage that theyve bought back from australia to bail them out is about 5. 00 to 6. 00 trillion dollars worth but the g. D. P. Of america is over 20 trillion so can we expect the central bank to buy another 15 trillion dollars or so of junk to keep the ponzi scheme going the word they use is whatever it takes that European Central bank does and i think that the model here whatever it said so that the one who lives in the stock holders dont lose and it. Well the largest stock market jump since the in 90 years last week when the bailouts for the wall street. 6 percent brillion dollar programs him out and the idea is that the economy has to bear all of the low labor Small Business and industry none of the last should be suffered by real estate or the banks because the loans written by a real estate bank. Its amazing that this is not more drove the bailout is not wrong and the sharks terms its really black and white and they look the banks and main thing all of. The should go bad because obviously a lot of something needs are going to go under and at the same time below the economy something passed and nobodys making that unpleasant calculation dont just bank says that theres no such thing as a free market anymore Goldman Sachs said something very similar last week when they recognize that the stock markets had hit bottom because of the fed and they had to roll powell put which of course is a continuation of the janet yellen put the ben bernanke he put and the inventor of the Central Bank PutAlan Greenspan the idea that theyre in the business of keeping the dow jones going higher and not in the business of protecting the purchasing power of average americans but my question is that. Progressives they have been saying that the solution to this capitalism problem is socialism but the capitalists are saying capitalism doesnt exist any more free markets dont exist anymore so where does that leave us dr Michael Hudson were not in a capitalism anymore and were certainly not of socialism anymore. What system are we is exactly the used to be called state socialism in the late 19th century when you had germany had the trying to reweigh integration between the government the military and the industry and the banking. And you have something similar today the question is socialism for whom will it be socialism for the one percent socialized lockwoods or will it be socialized socialisation or the 99 percent you socialize again and spend money into the act on the make them maintain Living Standards and wages well obviously were going beyond industrial capitalism and finance capitalism and finance capitalism have to gain control of the state in order to balance so. The sort of it artificially inflate stock and bond prices so we have today is asset Price Inflation and its the same time you have waged replay ssion and the equation of prices consumer Price Inflation so theyre there to look kind of means and to price and one for the one percent their assets and the other the economy and their wages and rates and now the us budget deficit is due to head 3. 8 trillion or 18. 7 percent of g. D. P. On top of the trillions being created by the fed appears we have an empty modern monetary theory for the bankers people are asking why they even need to pay taxes that the government and fed can print so much money and are we have so you know heres another idea youve been talking about m m t a it seems to be a banker said yeah i like that idea but only for us right to steal dr Michael Hudson this idea as im going to create it for our own private fifes im well at the irony that the founders of m. M. T. From the