A potentially breakthrough u. S. Vaccine was deliberately held back until after the election. Are your headlines, my colleagues, youll be hearing about an hours time with a look at your news until then stay with us. This is our international i am max kaiser. This is the kaiser re port lots to get to stacey. Yes. Well, you know, weve been talking about the cantillon, our class over the past few years since the money printer started going postal. The central bank started printing credit for the bailout, the Global Financial system. And now soc gen society in general has actually quantify how much just how much of trillions of dollars has been transferred to the top one percent who own the vast majority of stocks and bonds. So how much of the stock markets rise over the last 11 years . Is due to q, e, here is an estimate. The s. And p. 500. 00 will be trading closer to 1800. 00 without fed bond buying says society in general. Right now, is that 3500. 00 it should be at 800. 00 if it werent for the fed buying up all the basically the bad assets off the banks balance sheets. Yeah, this has a lot of implications. Ok, so without the money printing, the markets would be 5060 percent lower. Ok, thats point number one. Point number 2, is that asic until in fact, that means myself. I own stocks, bonds, and gold. And because that means that the markets exist as a transfer mechanism, so the fed can just print money for me individually. They print it so that executives buy back their own stocks of stocks that i own. And then i benefit accordingly. And as you point out, 90 percent of the population doesnt have stocks, bonds, and these types of assets to the extent that those like myself and others might have. And so thats the next point is that companies who back their own stock and the executives around these companies say, remember if you have options on your stock and the stock and you know, guarantee theres no risk. The stocks will hire. The options can go from a 1. 00 to 100. 00 or 300. 00, so an executive can make 5000200000000. 00. Thats why we have so many billionaires in america is by playing this game of guaranteed upside by money printing and owning the options on your own stock. And so if you strip out those numbers, you would have markets that are a lot lower. Youd have a lot more parity between classes in america, you would have the wealth and income gap. You wouldnt have the social unrest and you wouldnt have a lot of all these other problems. So its very stark, very plain to see for those who want to say, hey, were going to show you some charts to show you visibly how big it is. But in terms of kind of a lean duck, president coming and biden whos you know, very, very old and doesnt have the senate. And his leader says majority. And the Congress MemberJerome Powell, had said last week that we need more fiscal stimulus. Because all i can do at the fed is create these can tell you an heiress. And so here were having a situation where there will be, you know, free money for the people because theres no, you know, you dont have a populous, vibrant young leader who might be around for many years. And youre going to like, you want to be in his favor if youre in the senate, might want to do some deals. But there is no will to do some deals because you dont want to give the lame duck president any, you know, points that you, yourself, when youre in power want to achieve. So you know, the soc gen data. Again they said, so the stock market, the s. And p. 500, is that 3500 it should be at 800 and they say that the nasdaq should be closer to 5000. Then 11000, which is totally remarkable. And just to show you the charts on the s. , this is the s. And p. 500. 00 where it is. And thats where it should be the red line. It if it werent for q. E. And nasdaq 100. 00, you see the huge gap there. And of course gaps usually close should this quantitative easing ever, and if it ever can, and right, that, thats like a whole nother story to cover. But lets compare biden. He comes into office potentially. And this means that i believe were going to see a repeat of 2008. Remember, Obama Took Office and because obama was a pretty young guy at the time and didnt come through finance. And he was a law student and very good with constitutional law. But he didnt know anything about wall street. He kind of threw the keys of wall street over Larry Summers and all these other folks. And they went ahead and they created the Global Financial crisis. After a fact that seemed to benefit the can tell you, theres a remarkable way. Remember the billionaires after the 2008 crisis, all quadruple or more of their wealth, while vast swathes of American Population went bankrupt or lost their house. So im pretty sure going to see a repeat of that by, thats why they say from 11 years ago, 2008 when obama was elected, thats the point where it starts, and thats those that the trillions of dollars, you know, that gap represents trillions of dollars, trillions and thats why theyre so wealthy and youre not. And of course, like as weve already covered on Election Night when, you know, its like a few days afterward to determine, you know, to declare a winner. But at that night when trump was ahead, chinese currency crashed. And then when it was biden, it soared. So you know, that is something that ordinary, you know, the deplorable people across this country have to consider that this is the system theyre stuck with for the next 4 years. China continues to eat your lunch and you arent even going to get free money. There is going to be no m. M. T. For all. Theres just going to be more can tell you, created, and soc gen also looks at the bond market. And theyre saying by the way that you know, its the fed by saying all these bonds that drives the risk appetite, which is it indirectly then causing the stock market to soar. So in the bond market, this is what the 10 year treasury should be. Instead, for their part the soc gen analysts using a mix of wheat glee, Macro Economic indicators running back to 2005 took a stab at estimating the effect of the feds bond buying effort. On the benchmark, 10 year treasury yield, no, they concluded that q. E. Likely knocks around 180 basis points or 1. 00 Percentage Points off the 10 year yield. So again, putting it into this historical context, the 10 year yield in an American Economy that is capitalist and is foundationally constructed on a central bank and Banking System feeding into the not for normal class. The long term rates are traditionally, and you can make a strong case for them to be without equivocation around 4 to 5 percent. That give savers enough money to save for retirement if they work hard in the economy. When the fed started buying back these bonds and dropping raise to near 0, they transferred trillions of cash from savers. You know your mom and your dad out there. They probably have grandpa, they called you up and said, hey, you know, my retirement account dropped 8090 percent of income. That was this wholesale thievery going on by moving that capital to wall street and then use it to speculate. And as i point out about their comment about risk, the d. Risking of the economy never was if you know beforehand before the roulette wheel stops that its going to land on red. Then, you know, were going to put a lot of a lot of money on red when wall street knows that. As, as was said during the 2008 crisis, the news that Goldman Sachs got ahead of everyone else of the bailout was coming, allow them to put go all in, and they quadrupled their wealth overnight again. So that, thats money thats been extracted from the real economy using this machination of a passthrough mechanism that looks like a market economy. But its actually a rigged kind, a way to feed billions to your friends. Of course, when you just talked about grandpa, you know, and their pension being eaten by the feds, quantitative easing policy, i thought of cenk uygur of the young turks. He tweeted that he was so glad to have like a grandpa in office. And i say this guy still has to work because of the feds q. E. Policy. Like thats why we have this, you know, this gerontocracy as they call it here in america. Remember, theyre replacing capitalism based on supply and demand free Market Economics with what they call progressivism like so theyre trying to base an economy. Progressivism, just bad economics. They wanted to do mt, theyre not going to be able to do that. But remember on the campaign trail in the very last week, what were buying and then harris having to say they love fracking, they love fracking, and this is the bad economics that again, kaiser importance been right for years on this. Because not only did the fed encourage this, the growth, not even encouraged, but created the growth of this, can tell you our class and encourage risk taking and forced Pension Funds into risky assets. And they forced Pension Funds into private equity funds that were invested in what shale ok, well, you know, biden love shell, but ill tell you what, exxon mobil, which used to be the Biggest Company in the world, the biggest American Company in the world. And now its being displaced by high tech, of course, but exxon warns of 30000000000. 00 shale right down a decade after buying x t o. Again, this goes back to that 2011 p. R. In 11 years ago. Here it that all this cheap money, the quantitative easing drove people into the shale sector, which never made money ever, even when Interest Rates are 0, even when oil prices were over 100, even all of that stuff and they never, ever made money. So, you know, people tell us were wrong and theyll tell their wrong for 30000000000. 00, you know, how much exxon, how much, how many shares are in Pension Funds in grandpas pension fund. You know, theyre having right down there, shale investment because of the patriotic fervor that was happening that and, and this delusion that there was somehow that this was that a great investment because the yields are so high and blah, blah, blah, 70 percent of our fracking rigs. Begin life, negative cash flow and never make money. The remaining 30 percent end up losing money within 3 years. The industry as a whole is cash flow negative and is only exist for one reason to allow wall street to create junk bonds to sell into Pension Funds. And they miss out, they do not state that those bonds. If you look at those junk bonds are pension for shayla history and those that theyre all catastrophic down and they all go to 0. And then what will the politicians say, particularly those who are saying we love fracking . Oh thats right, they forgot to take the pencil and a piece of paper and add 2 plus 2 and come up with for the politicians whoevers novice will say 2 plus 2 is actually were not sure. So sorry, but sorry if youre sorry that youre poor, i guess thats the best the mean with awake right now, are your poor . No, its called have fun staying or have fun staying for the main with awake. So if youre in the shell business, have fun staying for well, Energy Stocks have lost 50 percent more value than the s. And p. 500. 00 has the biggest drop of any sector going back to 1928, which was like just the decade before biden was born. So i think its like, its quite interesting that this is like a full circle that this, this industry, this era is over. Were at the end of feet out at 0 percent where 0 pounds, where weve hit 0 dollars over biden came into office 97. 00 to just after we went off the gold standard. So this is just coming full circle and were going to sleep and who beats us in high tech, of course, is china and thats what the market said is where. Thats what the market said. It has been decided in this election thread. I think the current whoever is in the white house Going Forward this a bit of a poisoned chalice because theyre going to be in power during the worst collapse ever in history. I think theres a 99 percent chance that well, theres a 100 percent chance were going to take a break and when we come back, much more coming your way. Media claimed joe biden to be president elect obama group. Thats not how it works. Fine. Go towies, make that determination. We are in there, you lose the election. And what is the possibility of the country played the election was still is you will be a reflection of reality in a world transformed what will make you feel safe, isolation or community . Are you going the right way or are you being led away . What is true . What is faith . In a world corrupted, you need to descend to join us in the depths or remain in the shallows. During the vietnam war, us forces are also bombs, neighbor, unless there was a secret war. And for years the American People did not know until our mouth had rebound country per capita. All human history, millions of unexploded bombs still in danger. Lives in this Small Agricultural country, jordyn, we dont think its happening there. Even today, kids in laos full victims of bombs dropped decades ago. Is the us making amends for the tragedy in laos. What helped to the people need in that little land of mines . Welcome back to the kaiser report. Imus ties are time now to go to lynn, all the lynn, all the investment strategy. Linda, welcome to the kaiser report. Thanks for having me. I love your show. Oh, excellent. So Jerome Powell is, as were having this interview, hes testifying before congress and his one of his comments. I want to get your comment on. He says that fiscal policy is absolutely essential. Here. Hes kind of throwing it back to congress and saying, you know, we need to do a dress festival policy. So what does he mean when he says that some of that has to do with the transmission . The transmission mechanism for, you know, the asset purchases that he wants to do. So, for example, when the fed buys, you know, treasuries, Mortgage Backed securities, or apple bonds, or whatever the case may be, that doesnt make it out to the average person, right . So that, thats, thats mostly, you know, a liquidity boost up asset prices. But you know, you know, large fiscal deficits, whether its in the form of stimulus checks or other things can get out to the, you know, the average person. So basically that, you know, the Federal Reserve here, theyve already done, you know, wait, wait a Punch Program for monetary policy. But they cant really target, you know, to individuals the way that the treasury caps, which is basically saying is, you know, if they want, you want the treasury to do more of the targeting. And then the federal would be to, you know, to finance that, to buy the bonds as needed to maintain a little liquid treasure market. Its an interesting phenomenon because he has been doing money printing over there at the fed by the trillions and trillions of dollars. Hes saying now that we cant get individuals, youve got to work on that over there and congress concurrently with that, we see that the velocity of money has been collapsing for years. Up until recently, maybe theres a slight james, we can comment on that. What does that tell us when the fed saying were trying to create inflation by printing trillions for years, but if the velocity keeps going down, they hock and they keep doing that, whats going on here . Well, so if you look at money velocity that you know, that most refers to the broad money supply and the federally has partial control over that. So when they print money, that mostly gets in the Bank Reserves and the 2 ways that, that broad money supply can increase our either banks, lend it to individuals and corporations and use the broad money supply that way. Or the federal government runs these massive deficits that are monetized by the fed. And of course this year we saw the 2nd of that so we saw, you know, the treasury ran very large deficits. And a large portion of that chese issuance was purchased by the fed. So instead of extracted from the economy somewhere from taxes or lending and then put back an economy somewhere else, it was extracted from nowhere as extracted from new dollars and then inserted elsewhere in the economy. So we saw this big increase in the money supply, but we havent seen it. You know, weve seen a g. D. P. Decrease this year because of the pandemic. And because of, you know, theres a variety of factors there. So theres wealth concentration generally results at lower velocity. And also aging demographics in technology increases. So were seeing basically that broad money supply is going up a lot faster than g. D. P. Over the long run. And thats a recent philosophy got out. He missed a couple of things there about bank lending and wealth concentration. So the banks are not lending back. Frank philosophy, one bank, a lines to bank, b. And then bank bailouts. The banks say that i creates velocity of money and with Interest Rates of 0 percent. And with no blending from bank to bank, velocity goes down. That would suggest that theres no demand for money. Theres no demand for credit. And here in the united states, there are millions of entrepreneurs who are always looking for capital to start businesses. And then you mention a wealth warning. And so my question is, are banks courting wealth in a way that theyre not making it available to small to Medium Sized Enterprises . Which is walk us through how theyre able to do that. Because if Interest Rates are so low as they are today, and we know that there are millions of entrepreneurs who want to try to do business, what are the banks doing . How do they get away with that . It seems to me like theyre doing something that is economically on the sound or on the dodgy side of things, or what do you say to this . Well, yeah, the challenge is that when the banks perspective, they just want to maximize their profits. And so whenever they look at a loan, theyre looking at the risks and the potential rewards from it. And so when you have very low Interest Rates, you know, the overall upsides pretty much kept were as the risk is still meaningful, that they could lose