international inspectors arrive at the side of an alleged chemical weapons attack in syria amid concerns that the scope of the investigation is to limit. north korea nuclear and missile tests ahead of a meeting between kim jong il and donald trump. and the u.s. admits to funding arming the lebanese military despite warnings that the weapons could end up in the hands of hezbollah fighters. for the latest on these stories you can go to our t.v. dot com so with us now for the kaiser report finding out who has been benefiting the most from us corporate tax cuts.

this is the report. oh so sick max in the second half you have mitch firesign who has lots of charts but in the first half we have lots of data you know the empire state manufacturing survey came out and it looks like for the next six months looking into the future many factors in new york are not so optimistic but actually the i.m.f. who is also meeting in washington d.c. well there they've revised their forecast to look more optimistic for u.s. growth they've increased the u.s. growth rate for twenty eighteen by point two percent so they're saying everything's looking good through twenty twenty through the next elections but we're going to get to that in the next episode this episode i want to focus on the tax cuts so who's right the empire meant state manufacturing survey or they i.m.f. well wage growth well short of what was promised from tax reform the latest employment situation report from the bureau of labor statistics shows weekly

employee earnings have grown seventy five dollars since tax reform passed well short of the four thousand to nine thousand dollars annual increases projected by president and house speaker paul ryan so the tax passage basically americans have seen on average six dollars and twenty one cents increase in their weekly earnings which obviously false it's like three hundred twenty three dollars a year they had promised forty six thousand nine thousand dollars that don't sound so good now it's all about optics sounds good but you know there's a lot of gatekeepers and intermediaries in those generally are the big corporations that will always glob the majority of possibile gains by anyone. that's right and we'll actually get into that so in a in the next headline about how basically all the tax cuts indeed did inject well

over a trillion dollars and it cost over chilean dollars most of it is gone to the top but back to the bottom we're assuming a full fifty two weeks of work the six dollars and twenty one cent. increase in weekly earnings would result in a three hundred twenty three dollar annual increase nowhere near the minimum four thousand dollars promised on a nine thousand dollars potentially annual increases projected by president and speaker ryan a significant cuts were made to corporate tax rates whether or not that's going to lead to anything we don't know but there were those thousand dollar bonuses that doesn't count those things that happened like from the likes of wal-mart gave one thousand dollars to every employee american airlines delta airlines all these airlines gave a thousand dollars to employees so this doesn't count that as well yeah to me it's a weekend beer you know party but other than that it's meaningless and i've said all was now for many years that the way the system should work is that every stock bond security underwritten by wall street or any bank in america one percent should be carved out and put into social security so that americans whether they have

a job as minimum wage workers or whether they're c.e.o.'s all across the spectrum everyone gets to participate in this thing called the american economy because if you don't own stocks you're not part of the american economy that's true most of it is owned by the top ten percent but let's go into one of the specifics so you know there were a lot of headlines that were captured in the first few weeks of the year and that was that you know thousand dollar bonuses that was the big number right so let's just show how paltry that actually was compared to the savings that these companies had so they talk about navvy and they announced that it would be giving a thousand dollar bonuses to ninety eight percent of its six thousand seven hundred employees paying out nearly seven million dollars in bonuses while that may seem generous it pales in comparison to naveen potential tax savings using navea its two

thousand and sixteen net income is twenty sixteen effective tax rate estimated annual tax savings of nearly two hundred million dollars and it it's announced bonuses we can. he late that announced bonuses represent less than four percent of navvy hence potential tax saving so we give them you know hundred million and they give four million away and i was in my teen years to do magic in times square and to watch the three card monte guys very carefully and the tourists would come in and they'd lose thousands of dollars but it's very important when you're doing three card monte in times square to avoid having a tourist beat you up to let them win once you know particularly at the end so they may lose five thousand bucks but if they win twenty bucks at the am in their minds they're thinking see i'm a winner i'm a winner i beat the guy same thing in this instance they take millions and billions of dollars worth of fraudulent tax engineering but they give you one thousand dollars and in your mind you're saying see i'm

a winner on the big winner at the table and it's sad that they use such base psychological tricks to fool millions of americans into thinking that they're not getting completely wrecked over the coals but it does work well it's also not a thousand dollars to most americans remember we know that something like sixty five percent have less than four hundred dollars in savings for an emergency well you know it's on a relative basis then that might be a lot of money but the fact that the likes of nabby answer collecting ninety six percent of a bonus and only four percent go to the bottom ninety eight percent of their employees well that's the income gap and that wealth gap and america that's the problem not necessarily how much money you know when you when you talk about all the billionaire that that wealth and income gap people say well the poorest americans are doing better than the poor you know the richest africans in you know somalia or something like that so i think it's well within the society and that's

the that's the problem i think in the long term for economic growth is that income gap but in terms of just how much of this tax cuts over to. in dollars and tax cuts are going to the top well tax cut savings float to company stockholders trickle to hourly workers and the first three months of twenty eighteen investors received one hundred nine point two billion dollars in dividends more than eight percent from the one hundred point nine billion received in the same period a year earlier according to s. and p. dow jones indices in fact the s. and p. five hundred quarterly dividend payments set a new record and on top of that j.p. morgan has come out with an estimate of what the share buybacks this year will be and that will be a new all time high which is eight hundred billion dollars eight hundred billion dollars and share buybacks about a trillion dollars in tax cuts financial part whether it's the way interest rates

are structured to penalize the poor or a why their dividends are structured to enrich the coptic rat its version of financial apartheid we live in an apartheid state in america engineered by wall street so eight hundred billion dollars a share buybacks this year five hundred twenty seven billion was the number last year this also by the way you know reduces the amount of shares outstanding that the public can own so it's taking more and more stock off the stock markets by the way were also your pension funds have to invest so there's less and less available for anybody to participate in the public stock of this the stock market's being taken. with the help of artificially cheap interest rates and after this capitalist failure comes feudalism and on top of that by the way they're also they're not just buying their shares back with cash they're buying back with debt and part of that

is tax like apple has hundreds of billions of dollars overseas but the only way to get. back without being taxed on it is to issue debt here and buy share backs they want to alternately go it goes from bank a a bank bait a bank say to bank data foreign bank to bank to bank you all where the federal reserve bank how did they get multi trillion dollars' worth of debt oh is it financial engineering and financial part time who will bail out the federal reserve bank oh it'll be a bill in that's right all her savings will be given to the new federal reserve chairman because otherwise there would be a humanitarian crisis we need to avoid any humanitarian crisis so another story to put into this context of workers' hourly wages not increasing and i'm not seeing any benefit to the tax cuts but the tax cuts will add to the deficit and the

national that in a big way but here's another story out from truth in accounting and they're looking at the us if they had to provide accounting like all other humans and corporations and and cities do and that is us government spending may exceed sixty percent of g.d.p. us federal government spending is expected to bloat to over four point seven trillion dollars during fiscal two thousand and twenty according to congressional budget office data released this week however aggressive accounting may be hiding a far worse situation total spending by the trumpet ministration this fiscal year may be more than double what the nonpartisan cabo admits worst overall us federal state local government spending may exceed sixty percent of g.d.p. and will go into how this is calculated but basically all those social security and medicare payments actually are are not counted now but the debts the they actually

cost now but the debts are written they create debt which doesn't isn't paid off. a couple decades from now so they pretend it didn't happen this year all right they say that the federal debt is twenty twenty one twenty two trillion dollars but if you account for the total debt picture it's sixty seventy eighty trillion dollars so donald trump i have this message mr president tear down that wall that wall being the interest rate apartheid wall i think you are saying that well the debt that wall of jet. adjusts the internal financial apartheid state first and then go address these other problems in mexico and syria and all the others foreign adventures that the founders warned us against so the warning comes here from sheila weinberg and she's the c.e.o. of truth in accounting government budgeting works on a cash basis she says that enables them to leave many of their expenses and

liabilities off the books so they calculate her group calculates that the federal government's unrecorded social security medicare and other debts have increased by four point seven trillion dollars a year on average for the past decade that's on top of the unfunded liabilities and then there's the national debt and then this the national deficit so right now they're saying the deficit that our budget shortfall per year is four point seven trillion but in fact they're saying this truth and accounting is saying that actually it's closer to ninety billion a year that we're spending which is almost like what our g.d.p. is thirteen trillion ok so to be clear this is talking about the deficit yet not the debt the debt which includes unfunded liabilities that i made reference to is many more chileans of dollars then we are led to believe yes this is attacking the deficit office episode being told the deficit is your annual budget how would you go over your annual budget at the end of the year the year has ended and

a new year starts so you put the four point seven trillion or there in this case nine charlie on top of the debt the national debt so that goes back on to that pile that keeps on going. higher and higher in terms of the unfunded liabilities and total the national debt what they say is that is one hundred to one trillion at september twenty seven eighteen less fifty four point two trillion when calculated on the same basis at the end of twenty seven so the debt the deficit is rising the debt national debt is rising rising rising all right and campbell in other and the payment on the even of these low rates is hundreds of billions of dollars an escalating incredibly anyway we gotta go to a break don't go away stay right there. in july twenty second team on and i'll set up a freelance journalist watching his own t.v.

militant show me in syria. the only sacrifice quality has established a hold on such a memorial they will recognize war reporters who often risk the sake of the truth comes through the piece you can submit to your published works in a video form britain form go to a war don't go on t.v. don't come into no. four men are sitting in a car when the fifth gets shot in the head. for different versions of what happened one of them is on the death row there's no way he could have done it there's no possible way because the owners did not shoot around a corner. if you go through street mankind it's been cruel and destructive over and over again and somehow our cities have come back and many are quite beautiful and wonderful

place and. if you look in the middle east in places like syria it's it's i agree with you it's totally. depressing and. and i wish that the political issues involved with it could be resolved but i think until that is done has very little hope that the cities will be able to turn the tide of. people. welcome back to the guy as a reporter i'm ask either time now to turn to mitch fire stein he's the author of the internationally acclaimed planet ponzi now available in. various languages

mitch welcome back hey great to be here why did you bring your pen around this time this one that breaks you know that's a very expensive pen and how many of these of my broken so far michel lives. it's so tough to come on this show i think thinks that it's great you know credit month blank is fantastic show the people your shoelaces. before the end of the show them that let's go to the summit interesting topics or mistrust on the federal reserve balance sheet. you know because this explains everything you are the man of the charts you really you brought some charts what's happening we've got some charts today yes the first one we're to look at is if the federal reserve's five trillion nearly five trillion dollar balance sheet this explains how we've got the most grotesque asset bubbles in history so the fed just keep printing money and that's why markets keep levitating and we've seen the most grotesque bubbles in bonds stocks property and credit markets that you know in

history around the world and the other central banks like the bank of japan european central bank and the bank of england have jumped on the money printing bandwagon to jump in for a second because you talk about asset bubbles but it also leads to mal investment because there's no accountability if some industries know that every mistake is met with more free money and thinking about the military and the defense contractors who do very well by just bombing people with no accountability then i go to congress then i go to parliament they don't ask to bomb people they just bomb people because they know that there's no end to the money there's no accountability and there and at the central banks in a large way is that a fair statement you know well i mean look at some of the military industrial complex characters like boeing and lockheed martin there are. couple of them that are almost two thousand percent since the war on terror but the war on what is the war on terror really it seems to more like it's a war on democracy and look i mentioned this on the show a long time ago first what you have is a currency war which we had nine eight or nine years ago we're still seeing

currency wars currency wars lead to trade wars and trade wars lead ultimately to hot wars now the war on democracy i mean this is propaganda squared i mean you can't believe anything that's in the traditional media anymore c.n.n. for example you know own c.n.n. turkey which is a propaganda network c.n.n. america's not much better in terms of propaganda but we never say the u.k. the u.k. think about the propaganda b.b.c. and think about what to reason may and boris the liar johnson have done to bring a war into syria and the events in cells bury where they said oh the russians did it after five hours and then of course assad bombed people you don't need evidence anymore to start a war they don't go to parliament they don't need the people who say it's ok if they want war war it is in the military duster a complex makes money and we lose the taxpayers lose ok and to keep this in the frame of the kind of my perspective that i'm trying to put across here is that

a lot of it can be accounted for by having an economy that has no accountability and that not accountability and mound that's when it goes back to the central bank because there's an actual bank is not hewing to any known standards of accounting that would require for example tying at tying what they did with gold for example as they have done in the past they simply print with reckless abandon there's a new guy in charge jerome powell at the fed took over for janet yellen what's the story with him now well i mean he is janet yellen except you know he's just wearing a different mask so he's the bernanke yellen they've just shifted the baton let me just again. jump in we're talking about central banks now russia you mentioned russia they have a central bank from elvira is the first time i remember a last name i love the first time how would you contrast these two central bankers because a lot of people like james records for example says that there's such

a bank woman to leave the russian central bank is the best the world wide as they say that well i think you know if you look at the economies you can't compare the united states economy to russia's economy and you know you have to identify you have to analyze and identify what are you know the global threats and what are not global threats and if you look at what's the economy in russia it's under two trillion dollars in real terms united states economies around seventeen trillion to one thousand trillion depending upon what numbers you look at it's miniscule but the united states has debt to the magnitude of around two hundred fifty trillion dollars when you include all the social welfare and total net programs like social security medicare was the commonality of america it's negative what's the book value of bankrupt what's the book value of russia there's no there's no real debt positive to russia as a positive book value america as a negative book is value what i'm getting at there's not really a lot of debt which is really significant in the in the global scheme of things so if you disrupt the global narrative which is what we have going on right now

globalism is a big narrative if you look at what happened you know going back digressing a bit to the central banks of the central banks supporting the zombie institutions with low interest rates so you've got a bunch of companies that should have gone bankrupt tesla is a perfect example that lives off of government sector subsidies and the fat of the land if you didn't have a zero percent interest rates in the european central bank meddling in the corporate bond markets and the swiss national bank buying equities you wouldn't have support like this but then you've got you've got other you know narratives in the background that are running to try to run globalism have the military industrial complex and the characters of the deep stay. pushing propaganda out to everybody who will believe it let's talk about the dams and the system you know you put up a dam it cross a river and the water goes over that dam and it produces hydroelectric power. the reason i mention that is by way of analogy to get to my next point and chart which

is money velocity here's a dam in the works of finance that's not producing any energy is producing kind of like constipation in many ways my evil us of a we've talked about it before it's still trending lower despite all of this money printing walk us through it right well this is this is this illustrates that we're in an environment where eventually we'll have hyperinflation and it will not be controllable by the central banks who think they know everything and this is going to catch a lot of people off but look you can never pick as i've said before at the top of a bubble but i can tell you we're definitely in a ball war right now and you know in every market if you look at the chart on the velocity of money you'll see that it's crashed to low levels not even seen in one nine hundred fifty nine yet the governments keep telling us that we're in economic recovery so it's a fake economic recovery the narrative is a total lie and most of the people watching the show will realize that things haven't gotten better economically and there is lots of asset inflation so if you

take for example the prices of tuition up two thousand percent from the one nine hundred eighty s. but your real wages when you inflation adjuster stagnant so how do you explain that risk or the circle ok let's say the small to medium enterprises that are the lifeblood of any economy they can't get loans from banks but if i walk and see a big money center bank that's getting his money from the central bank and i need a billion or two billion to buy a multi-billion dollar property on central park south else i sure they'll give it to me well because in other words it's crony capitalism writ large and what we have here is a situation where the money is not. flowing to the economy to support small to medium enterprises because the banks simply don't want to take any risk whatsoever they hoard the money they participate themselves in these loans as merchant banks you know they've all become merchant banks they're all becoming equity holders in the money that they're lending you know out to capitalize on the inflation of the

assets that they hold in their own balance sheets which then bump the stock prices higher which pumps the option prices higher which pumps the compensation for guys like jamie dimon lloyd blankfein higher so they by putting attorney get on the economy by stopping the economic flow by dropping money. velocity does their oh they have inflated their net worth in the story quite right they have but i mean what's worse with that problem and what the government should be doing is they shouldn't be playing paying banks interest the federal reserve shouldn't be paying excessive reserve interest and they should receive retool that entire corrupt system where the banks make money by holding excess reserves that are from money printing so and to get it to be clear that not only is the banks cost of borrowing zero exactly it's. creative pay to borrow money for the banks borrow money from the

central bank and then they put it on deposit at the central bank so the more they borrow them or they make so there were the risk reward and the whole idea of capitalism of taking a rest for we were is inverted here you're saying that the more risk we take the more. rewards we make without any penalty whatsoever well if you look at look we had we did a program with briggs it for example when they had regs that you remember what the fear mongers were saying theresa may was one of them saying it would be the end of the world markets would crash sterling would go to zero look sterling is right back at one forty four where we were when bragg's it began yet the stock market's twenty percent higher and today it was announced in the u.k. that they had record low unemployment not seen since since one thousand nine hundred seventy one so can you believe is that credible is any of it credible absolutely not so you know that the situation the production situation hasn't improved that house house prices have skyrocketed there and to bubble territory

everywhere in real wages haven't gone up so what's happened the banks lend money as you said to real estate property developers at ridiculous low rates but they take a piece of the action and as these apartments get build built three years later down the road they're not going to sell any of them and the special purpose of vehicles that they developed are all going to go bust but this time there's going to be no will to bell them out and that's going to happen in the united states as well as in. united kingdom right the real wages as you say are not live whatsoever so if you get to a gig economy job and you're delivering a bicycle full of food at a minimum wage and you're out there and dodging traffic for it before you get head and end up in the n.h.s. i mean they count that as job a job growth however when you add back all the variables into this equation you end up with the average wages that dating are depreciating but the numbers on the top line are being showcased as being proof of recovery and yet there is no proof of recovery ok so let's talk about the shiller national home price index tell us about

that what's going on you've got a chart right we've got a chart here that explains house prices from one thousand nine hundred seven to two thousand and eighteen and basically if you look at the increase in prices you know ben bernanke he said that subprime was not a problem don't worry it's all under control and then you saw prices i guess two thousand and six start to peak out and then dropped down quite a bit all right i want to jump in because i want to cover to think rental prices in new york city are tumbling what's your quick take on that well i mean there's too much supply not enough demand of high paying jobs of course they're going to keep keep collapsing as i've said to try continuing to down thirteen percent already yeah i think i think real estate prices property values can drop up to eighty percent or even what eighty percent really tokyo only one hundred that's exactly right that's like primates the price isn't right let's move on to thirty seconds gold gold gold is the only chart that we have that is not an asset bubble and

prices are realistic on gold and will keep going higher so physical gold is really a place that everybody should look to hide out ok well you heard it here first eighty percent drop in property prices a tokyo ask collapse in manhattan is coming and author of plan a ponzi the internationally acclaimed tome that is translated into over two languages and that's going to do it for this edition. come on the shoes show should take a look at this to this ship believe the ship let's look at this look at this this is where your money manager famous in new york this is the kind of show you where ok keep that money. you can find us on twitter or a cause or report until next time.

you never know what's around the corner you never know what's in the pub even to walk into excitement it's not knowing that's where the adrenaline in much comes from. and you can easily be going to finish him in the extreme so will. the violence he's a punk and. a schizophrenia. where you can do all these things and behave badly. important people of hospitals a little. more soulful with a long lost. son this man infirmed. role. in this thought. i would roll the way and if i figure out a really good uphold i don't want to get. meaning in these music beef if you don't involve these constantly evolve and.

you go through history mankind has been cruel and destructive over and over again and somehow our cities have come back and many are quite beautiful and wonderful places. if you look in the middle east in places like syria it's it's i agree with you it's totally depressed. and i wish. good the political issues involved with it could be resolved but i think until that is done there's very little hope that the cities will be able to turn the tide i. think.