president trump warns of drastic action against north korea if it continues to make nuclear threats against the united states he has been very threatening. beyond a normal state. and as i said they will deal with five year period and frankly power the likes of which this world has never see before. for american mercenaries involved in the shooting in iraq that left fourteen civilians dead their convictions overturned a decade on from the massacre. the russian lawyer who's meeting with donald

trump's song coastal storm of speculation over alleged russian meddling has spoken exclusively to our take. i understand that the whole story surrounding my meeting with trump has been manipulated by whom i see only one answer to this question. well you can watch that interview in full in one thousand minute's time here on our team to national it's the concert for predicting a new show to the global financial system. i am excalibur this is the kaiser report even one of the themes explore on the show often as the crimes of wall street repeat themselves under different names now going to talk to you about the clatter was debt obligations remember those c.d.o. those while they've been reinvented it's the same scam but they've got a new name we're going to talk about that in a moment but first late breaking knows about some german woman stacey i want to

show you this headline which is just remarkable how empires and they choose to just shoot themselves in the head they're like. they're threatening the rest of the world but actually they're holding a gun to the head if if you don't know by obey biassed we're going to kill ourselves germany threatens retaliation if u.s. sanction harm their firms merkel is threatening retaliation against the united states for their russia sanctions so they the u.s. congress you know the both the senate and the house of representatives voted overwhelmingly for this bill to sanction russia but now it looks like the u.s. might be sanctioned by germany oh well that is exactly what i said for the past two years while america heats up this and russia rhetoric and increases the sanctions they're pushing germany a key ally nato into the arms of russia now america is fighting germany russia and china in a trade war in a world war in

a time of war who knows where this is going but imagine you've got the u.s. and the bridge or the u.k. on one side versus germany russia and china on the other side hum i wonder how that's going to go all the explanations of the chorus verse is america's creditor china america's biggest exporters china and germany plus throw russia in there as the biggest you know atomic weaponry that sounds like a formidable proposition but you know maybe maybe. the butterflies though the snowflakes the social justice warriors the transgender bathroom follows of peoples and whatever will be up for this fight anyway let's turn to some stories that are also in the headlines in the financial news and while we were gone of course the f.c.c. came out with a report about you know these i c o z's initial coin offerings in particular they mentioned the dow which is one of the earth the first smart contract the first i.c.a.o. essentially on the theory in block chain that all collapse when

a hacker stole some coins and that resulted in the split in theory i'm exactly a year ago so you know that was the f.c.c. said that is a security and they're going to regulate it so the f.c.c. is crucial to the next story about regulating and these threats of regulation because the sequel to the global financial crisis is here this is in the financial times and they say the central coper at this time is a collateralized loan obligation like its earlier esoteric cousins a c l o bundles risky low grade loans into attractive packages and high credit ratings and may there were two deals of more than a billion dollars each and experts estimate that seventy five billion dollars worth are coming this year alone ontario's capital recently closed a two point one billion dollars c l o the largest in the u.s. since two thousand and six and the third largest and history although most of the

loans underlying these deals are of quote junk status more than half the new debt is rated triple a sound familiar max yeah well it's reversed drug dealing you know typically if there are drug dealer you cut your drug with like you know baby powder or something a baby laxative and you extend your drugs do so more of your drugs here you start off with a really horrible collateralized loan obligations that are junk that are toxic financial instruments. you reversed but you put in some aaa rated government bonds to give it a higher content and so that is the same story from ten fifteen years ago and then the ongoing story that here you have a group of charlatans on wall street and around the world that are pushing onto the investment public securities that are not going to last and it will cause terrific pain but and then will buy the central banks that keep interest rates low so the

cost of fraud is always going down and as i've said before the show if you want to stop financial fraudsters on wall street and around the world you need to raise the cost of fraud the know if you're trying to stop gun crime for example raise the cost of guns if you're trying to raise a stop fraud on wall street raise the cost of fraud the interest rates of got to go up to make fraud less appealing for fraudsters until that happens we're just going to have more of the same so going back max to those c.d.o. is a clatter eyes that obligations back in two thousand and six seven eight those were mostly backed by mortgage backed securities that were sold to pension funds they blew up and the whole system collapsed so this time they're saying that during the early two thousand and similar highly rated deals called collateralized debt obligations were popular first they seemed harmless or at least not so big that their collapse could cause financial contagion but when regulators ignored their growth they became more opaque and more profitable with credit ratings disconnected

from reality like cracks in the building's foundation the risky miner at first behind ratings hid the instability of the entire structure until it was too late of course back then what happened we had new legislation more legislation for the american people because they pretended that it wasn't illegal to sell these fraudulent sacks of but as goldman sachs called it as they were dumping it into pension funds no they said that was not illegal so we'll make this a legal doubt should they ever do this again it will be illegal and they called. the new law dodd frank dodd frank was supposed to stop these credit rating ploys but the securities and exchange commission has permitted the agencies to dodge that law while dodd frank imposed liability on the agencies for false ratings the f.c.c. exempted them likewise congress barred the agencies from getting inside information about issuers they rate but the f.c.c.

permitted that to as c.e.o.'s grow the cracks are spreading again so as are saying just seventy five billion dollars worth of these c l o deals coming up this year those are being dumped into pension funds the article points out later seventy five billion and yet there's just been one billion and initial queen offerings in the crypto space and the f.c.c. is we've got to protect people about this and we're going to crack down and we're going to make an example here to throw some of these people in jail. yeah the f.c.c. is a protectionist racket they protect fraudsters that's as we documented on this show for years and has been documented around the world there's no a quick question about it they're they aid in this fraud and the size of the deals are now getting to the point where it will capsize the global economy once again and the pension funds of course are where people go to dump their toxic debt and those people's retirements will be obliterated and they're already quite harmed

through low interest rates that enable the packaging of these things you know i talk about how when i started on wall street the early one nine hundred eighty s. there was a lot of behavior that was dubious that that was on the line or crossing the line of what's legal and not legal and as i've pointed out what regulators did was that they changed the law to make what was illegal legal this is another variation on the c.d.o. crisis which is a variation on the savings and loan crisis is the same crisis is the same scam it's packaged. junk given a rating cell to pension accounts this is the third or fourth generation people meanwhile the wages are stagnant the economy is being undercut the chinese germans and russians are taking over and americans are sitting there with their foam up their is venturing watching politicians in washington who are in the pocket of these regulators and the result is catastrophic of course we all went to the voting booth in two thousand and eight and we're like obama says hope and change and he's

going to change is an approach these people and tell him we keep on going to the voting booth and say yes we're going to elect politicians that will do something about and of course they did something about that they introduced the dot frank because we're never going to let this happen to you again but these are elected regulators at the f.c.c. say oh we're going to get a donor who have just exempt it so anybody who might be out there ordinary americans who want to create a bank to compete with these horrible banks they're all they'll have to abide by those rules they can't cheat so of course they can't compete with you because you can just cheat and defraud many small banks across america have gone out of business because of dodd frank because of the regulations and dodd frank that the big banks are being exempt from actually having to abide by them on top of that they mentioned that last christmas eve the so-called risk retention rule of a dot frank took effect we coring that arrangers of these complex deals keep a slice of the downside but clever find answers arrange for third parties to take on this risk and that risk the club or the third party that has taken on the risk.

it's you it's me it's all of us it's the pension funds for it once again let us review some key points here how billionaires become billionaires in america for the most part is by taking the risk of engaging in this fraudulent system and putting it on to somebody else's shoulders you take ever since the nineteen eighties when you had options market begin trading formally it's impossible to trade risk separately from reward this is a been separated using mathematics and that risk once it gets cleaved off from the head fund or a private equity group or warren buffett it's then dumped into the public domain as toxic securities and it pollutes the public domain in the form of an economy that's not competitive lost wages and busted pension accounts it's not by accident it's not from failed economics it's not from poor policy choices it's from fraud and i

would posit financial terrorism as i've said many times before in the penalty should be death and ok and so you know last time what they did is they had packaged up all these mortgages that were given to people out with so-called liar loans remember the banks they couldn't have possibly known these were liar loans it was those fraudulent horrible americans those tens of millions with those underwater mortgages they're the ones that defrauded these poor bankers right so this time again there are already setting it up that you chump americans you with those pension funds it's your fault and the reason why it's your fault is because you need yielding you're chasing yields some experts say this time it is different earlier this month. a managing director of madison capital funding a subsidiary of new york life told a roundtable of c o experts they should not worry about defaults and twenty

seventeen quotes the appetite for at. for roche this he said pension funds insurance companies and university endowments are demanding both safety and high returns c l o's seem to offer both he said that's the rhetoric of. ideologues like jim jones drink the kool-aid cyanide it'll kill you but you're thirsty right now i mention a penalty before you seem to put it but if you don't have a deterrent and right now there is not a term for fraud well they could put the bank out of business they could kill the bank but they don't you know that the banks know that they will not be put out of business like the wells fargo a serial fraudster they did this week again caught this way you need to turn it and oh and losing one's life i think is an adequate deterrent for wells fargo and the c.e.o. well we got it we got to go the second half we could debate this in the comments if you want i'd like to see the blood spilt stay tuned for the second i have no go it

. welcome to. one employer. it's. the source of. chemical discoveries over the last century made easy to watch cost this is syria was exceptionally sick.

no wonder it's confidential. this is just three years old industrial giants reaps the benefit. by chemical production. as if these people aren't just experimental animals. the toxic environment continues to poison lives and we found these astronomically high levels of dioxin levels that my staff think maybe some of the highest levels ever found in the united states for almost thirty years this very serious problem had not actually been addressed what will that investigation into the chemical industry secrets revealed. to. the earth. welcome back to the kaiser report i'm not it's end of michael hudson author of many

books including the classic killing the host michael welcome back. it's good to be back next all right first i want to talk about your recent post on your site michael dash hudson dot com the post is call dads many proverbs he has some of these in prison why was your dad in prison who sent them there this is a story we haven't heard what's going on here michael well i grew up in minneapolis which was the only city in the world where being a trotskyist was a pure advancement ability and my father was a labor leader one of the minneapolis seventeen cents on under the smith act the day before pearl harbor. essentially the democratic party wanted to turn the teamsters union who said it was in minneapolis or to the mob who promised support of the democratic party and they really were terrified that the prosecutors

in minneapolis were going to take over the labor movement and the stalinist so also were buying against the trust yes they were urging the death penalty for the smith act that ultimately was used against the. communist party itself and so the attorney general bill framed up the cross theist's for advocating the overthrow of the government by force and violence the front is heading the books of marx and lenin on your book shelf. and. my partner and his colleagues at the un was calling the national guard and protect the straightening workers from the minneapolis police that were working for the local corporate gangsters and walgreens at the other local users of the things there is and there was a general strike and a minneapolis and one thousand three or that was one of the high points american

labor history my father was right the middle of it so he was sent to jail. well you know the trotskyist and the mostly federal penitentiary not local so federals where you want to be because i don't criminals they were mostly joe who was witnesses who were conscientious objectors during world war two and my father and others his colleagues recruited the mole in the drugs because party and my father were in the library and compiled out this group of robber he also compiled a list of everything lenin and trotsky had written on various topics but somehow that got lost in no one of their moves yeah this is incredible history i encourage everyone to take a look at it you know when i'm listening to their i had a thought i want to ask you more philosophically the labor movement in america any workers' movement of course has had trouble gaining agency in this

capitalist economy in this capitalist world and they also are constantly fending off entreaties from organized crime as well as corporations that seem to be in league more more often than not what the government. well how come labor are a left wing has never really come up where an adequate way to fight capitalism i understand obviously wef the communist manifesto and the works of marx there is a critique of capitalism but i start necessarily a roadmap of here's how you create a parallel system as far as i can tell but can you comment on that it or maybe my question is just completely off base well this is exactly what the trustee as we're trying to do in minneapolis my father under his party name of jack ranger wrote

next a labor party when he pointed out the impossibility of the labor movement trying to work within the democratic party it was basically a link between wall street and the mafia in the corporate sector he said they need their own ari and the government systematically not only in the smith act but later through the f.b.i. is cointelpro tried to move against any kind of an activist in the labor movement tried to be really independent either of the mafia controlled unions is bob finch wrote a whole book on on on there or in the end of democratic party so you ended up having that a.f.l. c.e.o. affectionately call that f.l. ca becoming the main and because of the war in vietnam. war against the socialism of america you had to leave the union leadership move to the right with the government moving to remove the get rid of any labor union leader

who didn't make a fatal deal with the vested interests to prevent a real labor party so now you're through nineteen fifties nineteen sixties the whole argument was over what is it that makes the labor movement think that yes there were. within the democratic party and finally now that we see a fight between up bernie and now we see that in the open the impossibility of the democratic party really representing the interests of labor or even of industry and i look back to the one nine hundred seventy s. where you had a bear market on wall street stocks suffer terribly but wages went up because they were tagged to inflation and america's wage earners actually that was a golden era at the nine hundred seventy z. if you work out a car wash you can still afford a home and you have some financial independence so shouldn't those seeking greater

parity of agency in this economy want to see the stock market crash want to see interest rates go up to help the stock market crash walk in the not cheerleading for a crash in the market because this will never wall street suffers labor benefits that's been the dynamic going back decades i feel they're not being told this i think there's a disconnect between the stock market and the rest of the economy so the stock market going up and down those not really have anything to do with the conditions of labor or why labor is not increasing it so wages we've discussed before in this show greenspan theory of why leaders not increasing as wages and it's because of the workers can't afford to go on strike if they don't have enough savings and their one paycheck away from missing a credit card payment or a mortgage payment that's really the problem the stock market is going up for completely different reasons that have very little to do with the economy at large

it's all really financial engineering not industrial engineering or not really something social with all the right way bring up an interesting point there about debt so an average worker would go into debt to buy a wasting asset like a house or a car whereas a wall street financier will go into debt. to buy him a deadly yani a picasso a chateau in switzerland things that go up in value so they're getting a leverage on their debt and the average worker is getting hammered by their debt and this interest rate apartheid is where we see the enormous cleave in american society michel well the workers didn't think of their houses being a wasting asset for fifty years after world war two houses were going up in price and the rising price of housing is what created the middle class in america all have concurrent end and the stock market managers are by their really not buying some of the you know he says are up junk are likely end in wormholes they're buying

their own stock corporate stop buybacks what you're seeing now is the stock market becoming part of the d.m. bust realization process instead of being a leading indicator which the national bureau of economic research used to call it is a reverse indicator of the economy this is not markets going up mainly because companies are buying back their own stock and they want their earnings and dividends instead of investing to increase output instead of hiring labor they're downsizing and were at the cannibalization and the looting states of american finance capitalism and the corporations realize the game's over ok so there's some talk in washington now about helping like amazon and google and apple all violating antitrust laws getting to pay becoming furnish us pervasive monopolists is this going anywhere is it just

claptrap or are we actually going to see some reform here the whole economy is becoming a runty economy the what you're seeing is not only amazon and the other companies and information technology you're having a vote for companies in every sector whether it's of for airlines for the for biggest banks or the floor because. panini's the roman operates and what they're really getting is not rockets and production but economic monopoly rents and the whole economy is now being built to room extract the monopoly rents whatever they can charge and in order to do that the corporations that have to take over the government and disable the antitrust agencies disable the treasury department this able almost every. every department of government and that's what we're having we're having a takeover that's not military but if a financial takeover that is turning the economy away from a profit in wage economy into a rent expression economy let's talk about banks for

a second so wells fargo of course that recently was caught stealing money from millions of customers they have now been caught in several other scams insurance scams there's no deterrent there's no penalties i've made the point that sense my days on wall street the things that were considered illegal in the eighty's have been made illegal so the message that these frauds communicate to washington is change the laws to make what the illegal activities that we're doing now legal so we can do them again but much bigger michel you don't have to change the law mix all you have to do is not apply it remember what donald trump said his secret of getting rich it's not the law isn't the important thing the judges are the important things and what he realized when government is that if he can do what obama did and people in the justice department and the treasury department that refused to apply the law the law doesn't matter you have the do nothing and obama

was the one who really showed all of this appointing the attorney general who were refused to prosecute and the federal reserve refused to apply the laws and the f.c.c. that is the punish companies for on you know right down the line. you're having a century late crooked judges put in charge of every department of government and that's the genius of this you all without changing the law at all you don't have to even do this i hope eric holder as a billion dollars scorer all the way somewhere because he certainly was complicit in fraud that covered many many billions of dollars hundreds of billions of dollars if he didn't not only is he corrupt but he is a moron what i have a staunch especially if that's the case i mentioned donald trump there let's talk about america and trump nomics is there such a thing as trump a nomics you touched on it briefly what's the current state well if there is such

a thing is nobody know what it means because he keeps changed it's not ideas he hasn't given any economic speech spelling it out basically economics is financialization it means out turn over the economy but industry lobby so it's government by lobbyists you know it's open press putting the class war back in business and that's what we're seeing a class war is back in business with a vengeance like s. and at any time in my life where i speak in a class war this obamacare is remarkable because we're paying two thousand dollars a month and all day long we look at people that pay nothing per month so how is that not class war how's that not you know festering and fostering you know uprisings of the straight the middle class war does not invoke employing leaders like that used it in both financial class war financial war against labor by.

medical care and by squeezing them for rent all right fair enough michael hudson thanks so much for being alakazam report and throughout and that's going to do it for this edition the cars are part of the mask as are states here but i think our guest dr michael hudson racist on twitter because reports like signed by a. thank you for new to the game this is how it works now the economy is built around corporations corporations run washington washington controls the media the media control over the voters elected businessman to run this country business equals power you must it's not business as usual it's business like it's never been done before.