Transcripts For RT Keiser Report 20240713 : vimarsana.com

Fairness that weve seen. Since the intervention is fed days so say in 1907 when the plunge Protection Team and Alan Greenspan came to the rescue of the the bad bets made on wall street chicago. And ever since and weve had more and more and more unfair system it starts off a little bit unfair and as we see like a little change of direction way back then in history becomes a huge gap we see that with the wealth and income gaps and we see that with every single crash and the subsequent bailouts gets worse and worse towards the very 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 mean. Time u. S. Housing j. P. Morgan chase to raise mortgage borrowing standards its 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 we acquire to make a down payment equal to 20 percent of the homes value but this is an interesting 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 its a highly subjective term what america relies on is free market capitalism and it 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 justice said this and hes part of the judicial system of courts and laws if breaking the law is without penalty then it isnt 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 other team produce there well that was because of all the patriotic investment from these banks into the fracking sector they lost money the 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 made a bet again bull 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 2000 and may is that ordinary americans said well you need to reeducate myself i need to get retrain myself and you know find a way in this knowledge economy go 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 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 diamonds you know bad bets get bailed out over and over every single time it crashes my belt bad bets never do yes and thats why on this show as a 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 10001 for you and it doesnt and they are free to break any law they want the only riposte. Is bitcoin and gold particularly big coin 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 our 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 and 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 so they raise the bar when you standards to 20 percent down 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 government revolution is coming funny you know its amazing put in the context of again central banking because central banking was supposed to be the lender of last resort and central bank it 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 neo 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 and sometimes less than. 0 j. P. Morgan one point last year was paid to borrow money every time they borrow 500000000000. 00 they werent charged 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 and 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 we hear 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 use is thrown at the garbage compare that 8102030 trillion thats printed to buyout assets on behalf of the club the 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 well 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 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 propose your scheme stocks 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 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 chair retirement programs leveraged earnings programs opportunity enhancements earnings and fish and c. 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 brand it and theyll say well turnings it has been 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 and has been programmed well theyre 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 they even though theyre a Big Insurance Company but all the major stocks in america have puts 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. In the. Room please. Walk next dont. Give us. Sort of the. 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 head funds and 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 folded out. Their own approaches and their court folios and pasted. 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 but 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. 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 if fracking industry had jumped by boat to go under your head to rescue not the freshers 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. She will bear said. 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 in the financing with all 3000. 00 is not breaking the law the head of the house Tax Writing Committee is. A democrat not representative neil and well 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 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 where the news is whatever it takes that European Central bank does and i think that the motto here whatever it says so that the one who lives in the stock holders dont lose and it. You saw the largest the stock market jump since the in 90 years last week when the bailout for the wall street. 6 percent brilliant Dollar Program sam out and the idea is that the economy has to bear all of the low labor Small Business and industry none of the loss 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 economy something passed and nobodys making that unpleasant calculation so its just a 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 that janet yellen put the ben bernanke he put and the inventor of the Central Bank Put Alan 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 anymore free markets on excess 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 bank. And you have something similar today the question is socialism for a boob will it be socialism for the one percent socialized lockwoods or will it be socialized socialization or the 99 percent you socialize again and spend money into the economy make them maintain Living Standards in wages well obviously were going beyond industrial capitalism and finance capitalism and finance capitalism you have to gain control of the state in order to balance so. You sort of it artificially inflate fucking bond prices so what we have today is asset Price Inflation and its the same time you have wage replay ssion and the equation of prices consumer great place and so theyre there to look kind of mean and to price and 1. 00 for the one percent of their assets in the other the economy and their wages and right. Now the u. S. 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 the. Other idea youve been talking about m. M. To me seems to be that the 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 1950s them through hyman minsky and all of this universe you know sirius and the city we all wanted to use the governments ability to run the deficit spend money into the economy to push up to a cheaper one flyman to raise Living Standards to finance Public Infrastructure spending so they would never get private. And so basically the economy grow and this was all attacked by the monetarist and so listen wait a minute if you can create money for the people you can create money for us but one percent and the one percent looks at the economy industry and the people is over it always people just wanting our money you know just to live on when the money really should be for us and for our wealth workers who are getting sob living wages and meat packing or in Delivery Services are getting economy a are now in a position to raise their wages youve got a long history in minnesota for and just such kind of worker activism our workers out a point where they can start to bring back organized labor and bring back wage you know with the power of collective bargaining are they going to blow it theyre certainly motivated to simply over the issue of Workplace Safety and protection against the the virus and and the fact that they are being laid off it will buy the employers with really no. Backup so you think that the whole health plan. Of the points raised by bernie sanders. Certainly going to catalyze that they dont organize it means that theyre just going to surrender quietly and make the economy end up looking like greece everybody. Is poorer and poorer they get on happy they commit suicide or they emigrate and their life span chart thats really the alternative they simply cannot live imagine whats going to happen in 3 months when all of a sudden they havent been employed all of the rent and then the band is going to fold do and the restaurants and Small Businesses they were worth cant afford to open because they cant afford to pay their rent which is their largest expense for the last 3 months well theyve been shut down theyre going to be wholesale unemployment almost no small increase if this doesnt trigger people acting in their self interest i dont think anything well my theory the max keiser theory of neo feudalism that we are returning to the state of a feudal political style stanek out amik model where youve got now peasants and oligarchs and thats it has certainly the banking all the arcs are just being. You know flooded with trillions of dollars and people can pay rent anymore and theyre going to be forced to sub subsistence living of clicking on ads on facebook for a protein pal if your vast knowledge of economic history etc is this is this a possibility that we end up with a neo feudal model Going Forward dr oz if i think thats exactly the model the difference is that in feudal times they were the landlords the descendants so the military contrary soon made it england and europe who ended up with all of the surplus in the form of land rent and the day the role of the landlords and the one thing sent. Its been replaced by bankers because rent is now big essentially by mortgage interest to the bankers and the idea. Debt. Should be increased to the point where all we leave is the minimum expense of living now unlike serfdom and you know as im the. Mayor and they want you papers can live wherever they want but who are they when theyre going to have to pay mortgage interest to buy a home for 2 thirds of the population or are they going to have better rents that cover the mortgage interest paid by the absentee owners. For their mortgage and so anyway we have a mobile population they can live everywhere they want but all the money in their paycheck over and above what basic living costs food and clothing. Are going to go so the Financial Insurance and real estate sector the fire sector in the form of debt service rent various forms of insurance because the service did not the quarantine you could argue that they actually had us appear your lifestyle anyway dr hudson thanks so much for being on the kaiser report its always going to be a tremendous day and thats going to do it for this edition of the kaiser report with me max kaiser and Stacy Herbert like to thank our guest dr Michael Hudson look them up if you dont read his books you probably dont know anything join catch us on twitter its kaiser report so next time by all. Humanity is on the edge of a precipice thanks to a continuing destruction. The natural wild. You just seem laid out a lot of good results. Losing much of a lady a few. Feet away. From everything you can hold up. For but. I think that all of the war. Or the. Only dealing in the muslim lands as a people both here. And stuff and. Ship them see that. Human activity has brought us to the brink of the worlds 6th major extinction of it and the people in this film just come to a good and moral. The world is driven by shaped by those with. Thinks. We dare to ask. There are a lot of lawmakers in the state of missouri that we know huge financial contributions from Agricultural Industry groups those are the groups that opposed d proposition b. And there is no doubt in our minds that those same groups pressured lawmakers to overturn proposition and before the session even started there were bills that were pretty filed to do just that you feel bad because it was repealed but you know all of your work. Has made a dramatic difference for this i mean just the fact that almost half these facilities are out of business you could have a vision that things are definitely much improved with many of the worst operations but you still have chronic while leaders who are operating you still have treatment. And you still have the. Believe they can do whatever they want there are so many issues out show many porton issues and everybody is struggling in their own way that we dont necessarily want to pick up the other guy struggle eventually i have to go back into my town and face this neighbor and face the other neighbors and i will meet them at church ill meet them at the Grocery Store a meeting at the restaurant at the sale barn and im responsible. And i think this is. Where the buck ends we individually have to take responsibility as producers and also as consumers but i mean i think for the public very clearly you know you have a choice in the product that you buy at the store. You hear of a problem in your own backyard if youre by