well imax kaiser welcome to the five hundred episode of the kaiser report five hundred episodes of markets finance a scandal covering crimes against capital markets and economies bell ends bailouts and the bond pocalypse class crashes london wales and obamacare m.f. global jefferson county and cyprus manipulating metals librorum for ex them prior squids and tapeworms we've covered it all here on the kaiser report but aside from the bad and the ugly we've also covered the good so over gold and bitcoin the global insurrection against banks to rock your patient aka jumbo move your money and campaign will pay and the most interesting guest of all financial media

mainstream or alternative and the best audience for sure that's you right stacy yes max and of course five hundred episodes of the kaiser report we have an audience out there including a look say t c h q or n.s.a. they've been forced out of the dark by edward snowden and they after only a little bit. that only people who put it that the time clearly here. there we go we started the show in november of two thousand and nine four years later we're at the five hundredth episode and you know i'm going to go over some of the topics the things that we've seen over these years and where we have arrived after four years of this show now the most remarkable is the aftermath of the financial crisis and one graph you see the blue line is financial profits are up fifty nine percent since the beginning of the financial crisis the red is corporate profits up forty two percent green is the s. and p.

and that is up eight percent and pearl. well is employment which is down seven percent the crisis was created by over financialization of the economy in the u.s. and around the world bet is to say that the business of the u.s. and the u.k. became the business of printing lots of bonds and then manipulated those bonds using derivatives that's how the derivatives market got to be six hundred trillion in size on a global g.d.p. of about sixty trillion then you have the crash of two thousand and eight which was a crass of financialization securitization to get out of that crash the government decided along with the treasury and the federal reserve bank to increase financialization which increased the profits of the people who caused the crash to begin with and as we've said on the show along stacey people are not needed in an economy where the top two or three hundred people can just get money for free from

the fed similar to saudi arabia they don't need the citizens of saudi arabia they just they just pump more oil and there's incredible poverty in saudi arabia in america now there's incredible poverty because the people are not needed their jobs are not needed their tax revenues are non-native because the bank of america the federal reserve bank just prints money and therefore it just creates a suit of wealth and income gap actually i'm going to skip ahead to a headline i have there because you mention the derivatives use of derivatives as a what form of wealth confiscation and wealth transfer schemes the typical american family makes less than it did in one thousand nine hundred nine in one thousand nine hundred ninety median american household me fifty one thousand six hundred eighty one dollars in current terms that means that twenty four years ago a middle class american family was making more than a middle class family was making more than a year ago which is fifty one thousand one hundred seven now if you look at the chart you can see the past twenty five years that it rues under the median income rose under clinton but then what happened at the end of clinton administration max

we had the read. glass steagall and we had the commodities futures trading act which enabled derivatives to go global they had the reclassification of derivatives as gambling instruments to legitimate instruments of finance as part of the global financial ization of the economy most corporations by the way are in the business of finance they're in the biz of lending famously g.-mac general motors except as a corporation makes most of the money and not for that g.m. not making cars ok that's just one example there are many examples but just take a look at the last ten years as what happened to one portion of the american population the black population they were told to buy houses under bush they then got caught up in the subprime scandal which was a manufactured crisis they've had the biggest wealth confiscation in their history going back to slave days and they are now feeding into america's person system which is owned by the same financialization the same securitization the same banks

on wall street so the black americans have gone from slave to middle class back to essentially imprisonment and that's all served to the purposes of the top one percent of financialization eyes or so you mentioned one percent and of course the ninety nine percent listen to occupy wall street happened since we began the show we've covered that we were right there covering occupy wall street from the very beginning now here's a headline from forbes on the two year anniversary of that give back yes it's time for the ninety nine percent to give back to the one percent and they say imagine the effect on our culture particularly on the young if the kind of fame and adulation be the lady gaga attached the more notable achievements of say warren buffett or if the moral precepts our don mother teresa went to someone like lloyd blankfein who in guiding goldman sachs towards billions in profits has done infinitely more for mankind well this is a market fundamentalism just like america is now hiring al-qaeda in syria to make

way for a pipeline for saudi or. abia than forbes magazine points to a financial terrorist like warren buffett who's in the securitization business financialization business who has done more to destroy the american economy than almost anyone except for lloyd blankfein they've all been caught and gazed in massive fraud they've had to pay small civil fines as part of rigging the judicial system and the legal system with the money they make in this financial life ponzi scheme and forbes magazine is a shameless promoter of market fundamentalism or market terrorism this is an article that said in pinion piece a commentator an outside commentator who posted this on there he's an iran fanatic so he's looking at the profits the so-called profits that lloyd blankfein has stolen from the rest of the population through fraudulent warship mortgage backed securities to front running markets through high frequency trading and he's saying that this is in an absolute objectivist fundamentalist way that the profits are

all that matters and the fact that he stole it from you from your granny tough luck that's that's capitalism and his version of it well we've seen this with other fascist regimes and as the wealth confiscation gets more pronounced those who are doing the stealing whether it's the nazis in the thirties or warren buffett in the twenty thirteen period they scapegoat the losers so the losers are being scapegoated i've already mentioned the black community america's being in prison a record amount of the prison population in america is the fastest growing population the prison population in absolute terms is higher than any other country in the world and that's forbes is assisting in this scapegoating of and pretty soon prisons become concentration camps and they become extermination camps that's the final solution to the debt bomb created by the federal reserve bank mark my words you'll see it america in the next five years the other thing that we've been covering is the global insurrection against banker ochs occupation but of course that is nothing has been able to stop the rise of the banks for class i was as we

see in the numbers that we just cover the. median household income is down the wealth and profits of the fate of the financial sector is up lehman's legacy of inequality james saft of reuters when lehman went down five years ago it set in train forces which could easily have led to the failure of many financial institutions face of the possibility of take a large sways of the banking system into effective government control first the bush and later the bomb administrations chose instead to shelter institutions and executives from the consequences of their actions that involved creating a variety of policies which subsidize large banks and helped to dig a moat around the businesses this went hand in hand he said with monetary policy and put this in the context of the guy who wrote a commentary on forbes dot com where he's saying that lloyd blankfein his profits make him a holier than the ninety nine percent when as james saft envoy here is pointing out is government policy it's manipulation through the fed that is giving me that has built a moat around goldman sachs and enabled them to profit at the expense of everybody

else but this is a failure of all markets due to market fundamentalism the collapse of lehman was a market said no that should should have alerted the government and everyone participating in these markets that their massive reform was needed but instead they interpreted that market saying bill as a way to make the situation much worse again i made the comparison to theocratic fanatical religious extremists who misread their fundamentalist texts and everything they read suggest that they should blow themselves up and other people same thing as lloyd blankfein and warren buffet everything they read says i should blow everything up i should commit mass terrorism that's the message that they get from the thing from the price signals that they receive it's a breakdown in capitalism unfortunately and that's predictable because unfortunately the price of money is close to zero and access to money is ubiquitous by the stock are seen in america ruled by the least qualified not to mention the kleptocracy on wall street this is again what they point out is that there's

a huge. subsidy that hasn't worked in the last five years since we started doing the kaiser report there's a massive subsidy and that these banks goldman sachs j.p. morgan any of the other surviving banks they know the investors know that they have a guaranteed subsidy is that the government will bail them out no matter what and he points out we also have an effective subsidy or rather multiple subsidies to an industry which has proved itself remarkably immune to the power of technology to bring down costs and improve products despite what the guy on forbes said is not bringing innovation and efficiency to our economy is actually slowing it down it's the king up the wheels of capitalism well our frequency trading which is a technological innovation finance is used to steal money from the new york stock exchange you put a computer colocated next to the floor their stock exchange algorithmically your front runner trades on the exchange and that money goes into the pockets of banks like goldman sachs with zero risk that's siphoning cash from the economy had zero

risk so naturally people are increasing the rate of poverty there's an increasing rate of poverty in america if you have a bank that's actually got a computer parked next to the exchange that's siphoning off the money and then you're going to have a lot of poverty out there and of course you have to add let's scapegoat the people that were victimizing to make it a true fascist trifecta thank you lord like life so finance went from fifteen percent of g.d.p. in one nine hundred eighty to twenty two percent today and so they are able they're too big to fail they're able to get away with massive crimes and and why is i why are they able to why are they able to scapegoat people and part of it is the media because you can't have these crimes without propaganda and i saw a tweet this past week from dennis kneale of fox business and he says hey guys another day another fine on j.p. morgan what's bugging me tweet us is the government's assault on j.p. morgan going too far is the government assault on j.p. morgan not the j.p. morgan's assault on the american population the global population to libel rate

rigging through municipal bond. rate breaking through the collapse of jefferson county through the front running of markets through manipulation of silver gold energy markets no j.p. morgan financial terrorist embraced by fox and c and d c just like they now embrace al-qaeda to fight their wars and in syria you know twelve years ago out that it was bad oh nine eleven blew up other bad now they're out there a lovely friends we want them to run that i'm still not surprised they don't buy one of these guys around the bank the federal reserve bank just go out and hire a terrorist out right drop the facade hire hottest to run the federal reserve bank of america warren buffett you've got influence all right stacy ever thanks much for being on this very special five hundred episode of the kaiser report five hundred more max. all right states over the second half a lot more. think

you need to review economic downturns in the final months stay the. night and the rest because i think the case will be a prickly. dramas that can be ignored. stories others who used to know.

phyllis's changing the world lights now. old pictures posts. on to and from around the globe. up to. fifty. welcome back to the kaiser report imax keyser with this five hundredth episode of markets finance and scandal time now to go to ecuador and speak with professor steve came who was on our fourth episode of the kaiser report so it's time to check in with professor kane welcome back to the kaiser report serve makes a lot of being able items are still going to grow the most popular show on the finance and growing around the planet professor king has been five years

a sense lehman brothers collapse are we any better off today is the financial system more stable no way no way there's a great tragedy of this is the dish it has been a final soft blowing the debt bubble and i mean private primarily message for the global economy when the crash happened and because the politicians become so i walked up on the belief that yukon have a viable economy to shoot out a lot financial sector and they spent this fine reviving the financial parasite rather than reviving the economy to parasite it actually brought to its knees so in fact we've now got a soul's back on another unsustainable trend probably of rushing product that new america for a while feeling the same sort of thing with that ludicrous i go to the sale oh see this golf course get another ball out of it the same apparently happening in a strike or does he simply have low interest rates so that blowing bubbles one small and the system is much more fragile was a scary much la-la jeweler did right and it was before the last process began ok now you mentioned something there that we stacey and i talked about the first half

that is that the lehman brothers collapse is a price signal and if the capital system were working normally that signal would have been circulated as we need to reform the system but instead that price signal was attempted as we made to double down again on fraud correct i think it's correct and it says ruefully. i or i blame the private sector if it is follow but i blame the thievery the public sector a fool not doing what it should have done and saying will you guys you could use french ideas would side with as many would be. the economy and it's now time you try to prosper doing it your way you walk out you know real one holes go your head where you post and we're going to put bill black on you and what if you were in jail for through it was clear that i had to be involved in what you did none of that happened i became totally psyched fanfic for the financial system so i just talk about a military industrial complex aching over america i would actually happen is the

political financial complex the second i have not just america been taught when to imagine that you blame the private sector more than the public sector the public sector of course being the government now when you hear debate about this on the mainstream media you see it or you hear a lot of finger pointing so the private sector will say look we wouldn't be engaged in this massive fraud if the public sector or the government didn't didn't allow us to engage in this fraud in other words if you want to stop then you need to pass laws to stop us then the government or the federal bank the reserve bank in washington will say well we can't stop the fraud because if we do it'll cause a problem in the private sector all the banks will collapse so we have to keep the fraud going with artificially low interest rates and quantitative easing they keep this ponzi scheme going so there is this figure pointing by the way everyone in government is getting fabulously rich everyone in congress has participated trading

on inside information the net worth of the average congressman senator every one of the administration has doubled tripled quadrupled every of the bankers in the private sector same thing their net worth of doubled tripled quadrupled everyone's making money in this unholy alliance this fascist alliance between government and wall street and all the one holding the bag of course. are the average person who's not part of the kleptocracy but they believe they are participating through the housing market particularly here in britain where george osborne believes that by re-inflating the speculative housing bubble he will bring social economically back to the economy of britain is this a good idea professor steve came it's long so you know we're going to short term this is a great tragedy max because as you say it's obviously the politicians in the financials that made the biggest bottle out of this process we went across if you get sucked up by the housing bubble they think they're getting better off because only those

that got houses were to go to the guy and for coming out ahead what you get is social division coming out of this and ultimately badly says i should write down as well so it's assurance and tactic you fools you for a while and it collapses in a heap of a later stage and we're back in the same bloody stock again so it is a great tragedy to get a chance to reform the financial fraud of capitalism which senator wife might make more money out of the financial form of capitalism and to even further involved in the finances in the process what we've seen over the past ten to fifteen years is a global bubble and bust economy driven by low interest rates we had the asian financial crisis we had the dot com blow up we had long term capital management we had the housing bubble subprime bubble and burst now we're into what looks to be a sovereign bond a government bond bubble but there is a a rotating musical chairs of bubble and bust and we've talked before about the real estate market in australia and the real estate market in canada it looks like mark

carney is old country canada is either it right in the middle of or about to experience a major real estate collapse or thoughts yeah i think it's sort of it's good to go and that's the bubble looks like a good bit of extra makes them a lot some of the debts are the most rigid numbers that was still driving process off. when you when you look at the level they've reached a kind of years now and we've gone from being. loaded country and over just to have to have medium to high good country and overeaters and you always have a boss at some point they can rescue it again is it risky to the american both of us now rushing once will but you have to have a crash and they certainly have you and you've been trying to issue a while ago and you know if you skyscraper and crying and crying country so are you in a sense that having developers of massively articulated will competing to be the first aussie open the front tool and i think good that they won't be the last one to have to arrive in the door to the bank and said i think about this walk again but it may be quite another year ok let's talk about one of your favorite economists hyman minsky and i should point out your book debunking economics is

a must read for anyone who wants to get a good picture a good view on exactly all the dimensions that are contributing to this massive global fraud but let's talk about i mean minsky for a second because i'm immensely of course the minsky moment is something that he came up with and it has to do with the self referring bubble mentality so we see it right now in the u.k. because house prices are up the people who are part of the bubble believe it's been due to their own ingenuity and genius b.a.v. or they buy into the bubble this is part of the minsky moment this self-referential what i call financial narcissism where it becomes patently obvious that the bubble must be real because i'm part of the bubble and this is part of what contributes to and there's different levels of those different parts of the minsky moment cycle i wondering if you could review that for a moment so we can have an idea of where the u.k. is now in this delusion well it's actually good what i bring up next because one thing we saw the spike of at great length was what he called euphoric expectations

and he said if you have a capitalist economy it's always going to be cyclical nobody wins they'll be boss even without in the finance sector on soft when you do have the finance sector on top people get to you know good might borrow too much money they've got to refight some of the during a slump so the economy slows down and listen it's totally in terminal slump like a great depression or government comes in and does this ridiculous spiral out of the financial. like i've done this time around because i'm the only stossel studied the laws because it starts to study the laws people stop as they get the previous crossers so they're willing to borrow money on small so the bubbles out cycling off once will and once the dollars what's actually driving economy out is the rising level of dead and everybody who is driving by selling assets on a rising market cools by rising dead as you cite financial gnosticism that because all they genius there doesn't is really the fact it would be borrowing money and buying second as well they shot the dross the process up so they had to decide to completely euphoric and they guys had absolutely total rage and in the eyes of rich

girls many of the products they take on are actually losing money and then what happens once i saw some lose money they got of our own money just tight to have to stave off bankruptcy they can keep on doing it one of these sides is going to be for someone to go slightly too long they miss one and bang that bankrupting the whole thing comes crashing down once more and that's the will of the politicians in the financial sector that are giving us a lot of the night and sixty's when we were talking about taking off to the moon in rocket ships we're not taking off to the moon in day. yeah i saw an interesting statistic today and i will quote this paraphrase it a bit but the house price average house price in the u.k. is increasing by one hundred pounds a day whereas the average median income in the u.k. is roughly eighty eighty pounds a day excuse me but you see right there a huge disparity the house prices are moving up quite a bit more rapidly than what people are being paid on a daily basis additionally i saw an interesting statistic that said that in the

u.k. over the past several years you've got your ten thousand dollars a year you have in the bank has lost purchasing power down to the eight thousand pound level just over eight thousand pounds so once again they say there's no inflation they say they need to keep interest rates low they say the housing market is not a bubble and yet the average person is losing purchasing power they're not participating in the bubble and they're and they're creating social unrest so this is a recipe for i guess either as a societal collapse or societal of people where your thoughts. yeah the trouble of us aside it is dicey when no one here is over not just as we used to be back in the not in thirty's and forty's because of this stuff that happened back then when you had strong trade unions and militancy in the working working class and you also had here let's show security you couldn't afford to put up with it people would be on the streets to get actually see political demonstrations against it these days in some way social security that was the bottles as moscow to that level of political

revulsion that people should have of what's happening right now so i could organize the politicians continue getting away with it the outcome ultimately i think is more like turning japanese without the benefit of being gentle nice so you stop getting out of a stagnant economy because there's this process can only work for a short while for fools back into it all the slop and you didn't have usually isn't possibly day it's a slow growth meaning people convert into the workforce in the first place they certainly combine a house and over already ready run out and you don't get a depressed society that can generate depression i think is more the outcome rather than a you know explosive reaction to it i would like to see the explosive reaction but the trouble is normally when those things come they don't come from the people they come from a fascist movement and i think when more and more likely to see that happen i would sign and frankly this is the same way you'd look kind of crap back in the 1930's it just happened foster back then right well we're already seeing it in grace with the

rise of the name of fascist party challenging the i.m.f. and other financial terrorists now i know you're working down in ecuador at the moment steve keen so your thoughts on emerging markets how have they done in the past five years into this debt crisis and i've got about a minute left. yeah they do some of the legit markets themselves appear to be getting back into a bottle again certainly china isn't a viable would it has more of a capacity with the state's finances and it strikes at the speed that got them going and definitely side i wouldn't gamble on this one it will actually find pretty interesting progress to the country mary where there's still the stuff i'm trying to stop themselves being taken out of by the financial sector and doing a lot of attempts to build innovative genuine capitalism down here rather than the fraudulent stuff that's running and wastes so there's some glimmers of i've been there do it in emerging markets but let's not gamble on them let's get back to being a really productive industrial capital society one of these guys all right well save came thanks for visiting us on our five hundred episodes you were there on our

fourth episode we've been tracking your work your career now for a number of years and it's great to have you back on the kaiser report. right she'll be in touch with you guys i love you both dearly and that's going to do it for this edition of the kaiser a four with me max kaiser and stacy herbert i'd like to thank our guest professor steve king author of debugging economics if you like to contact us tweet us at kaiser report and we're looking forward to another five hundred more episodes for you it's a lifetime backscatter saying by all. we're going to do it. did you know the price is the only industry specifically mention in the constitution and. that's because a free and open press is critical to our democracy allmers. in fact the single biggest threat facing our nation today is the corporate takeover of

our government and i was proud cynical we've been hijacked my handful of transnational corporations that will profit by destroying what our founding fathers one still just my job market and on this show we reveal the big picture of what's actually going on in the world if we go beyond identifying the problem. rational debate and a real discussion critical issues facing our defunct ever ready to join the movement then welcome to the big picture.