sure they were. again fifteen feet apart at this point. the e.u. turns down to some maize request for a three month drugs a delay offering the twenty second of may. with strings attached. president trump says he is ready to recognize israeli sovereignty over the occupied golan heights a disputed area from syria in one thousand nine hundred. dollars question italy's willingness to join beijing's belts and road infrastructure project calling it a tool for chinese influence. these boys are going to stay with us now though for the financial news in the report and in an hour's time.

this is the kaiser report let's find out what's happening in the world with stacy. max you know on the last episode you mentioned that bankers didn't go to jail ok and i want to pick up on that theme because it is quite an important story to think about while you know we've been covering this sort of demise of the us empire and you know of course it's nothing out of the ordinary every every every single empire eventually collapses. partly for the same reasons but one thing that always enters this space is corruption and the pie begins to shrink and the viciousness for the various powerful families the names of people you know in the system start to fight viciously for control of a shrinking pie and i think we see that with with what happened to paul manna for

it when he was found guilty in the two federal charges in two federal cases and then the state of blue states very democratic state of new york decided that they're also going to try him for mortgage fraud and and they've got after him hard and they're valuing that were going to be vicious and violent and aggressive and then dick do with you so it really made me think of a sort of corrupt systems. that we're going to see because obviously then a red state is going to start to fight back and militia slaying capriciously target somebody well known in the democratic party and of course new york in particular the audacity of this i want to point out as you and i have covered the mortgage fraud crisis of two thousand and seven through two thousand and nine the collapse of the global economy of course happened because of wide spread mortgage fraud in the united states not only on the origin ation of these mortgages that the likes of

wells fargo mccovey or pushing but the packaging of those bad debts up by the likes of goldman sachs for example and then sold to pension funds and even though they knew them to be sacks of bleep. reminder that new york eric schmidt neither man the attorney general at the time he led to this headline new york to get six hundred seventy million for mortgage settlement this was from april twenty sixth seen on usa today a five billion dollars settlement monday by the justice department with goldman sachs of the mortgage crisis in two thousand and eight include six hundred seventy million dollars for new york attorney general eric schneiderman said the piece for new york includes four into the ninety million dollars for consumer relief and one hundred ninety million in cash justice delayed is justice denied right to let us play out the game play out the clock and by the time they award the finest already been paid for three or four times in the washing machine that is wall street or

goldman sachs oh yeah it's corrupt i mean corruption is you see this end of empire because actually the thing about money is that it makes you more insecure and more secure. and so as you become more and secure with greater wealth you become more paranoid and you begin to act out and you begin to try to destroy your enemies and so leads to this. type of thinking and a leads toward an empire like the u.s. trying to draw up the drawbridge particularly and we've made this point before after nine eleven the wealthy in america decided we're not playing anymore we're going to just grab as much as we can of the cash out there in the system and put it you know offshore and that's why there is now twenty two trillion offshore and so there you model of credit in the system shrunk the central bank instead of punishing the banks just flooded the system with more of the fia money and then those who are the paranoid have yachts versus the have nots decided you know we're going to put out more offshore so they just keep printing and shipping it off shore

it is completely bypassing the economy and so the economy is getting more starved for credit and the people are getting more restless and you couldn't do your own research by the way just go to google and look for the data for the past twenty years. or thirty years and you'll see quite clearly from two thousand and two thousand and one which not only did nine eleven happen but also bill clinton paved the way for the wealth and income gap to happen for that looting to happen with the commodities futures modernization act. the destruction of glass steagall so all those things were in place and you can see it you can see the plunder happening live in the charts but i want to move on to this other story about you know the college bribery scandal you know it's a small time thing is twenty five million dollars or at least the bits they've identified but there's one person in particular that i want to highlight that was arrested for bing hit the way in for his children to one of these universities but

it brings out bano and this notion of the virtue signalling celebrities and their sort of capitalism their sort of impact investing that is actually covering up the basically the plunder system so i wrote our entire system is one elaborate ruse to keep the peasants from realising that they live in a neo feudal society and this was in response to a tweet stream i read the first one the juiciest most revealing fact in the college bribery story isn't the hollywood celebrities it's a guy named bill who is alleged involvement tells us everything we need to know about our age what is alleged in the scheme is that someone who claimed to be working to change the system change capitalism empowers others helps others rise was working downstream to lock others out of a slot they perhaps deserved but that would instead go to their kids and now the absolute deans of the doing well by doing good industrial complex a man who embodied the faith that the meat of the earth could be saved by private

equity barons has been indicted for rigging the opportunity against a disadvantage so this is a guy from a private equity firm called t.p.d. and he and bondo have a segment at this private equity firm called. impact investing that these wealthy oligarchs these billionaires these guys who have received all the free money that can tell in a fact from the fed all these people who are the losers and all these people who are the winners you know the friends of hillary clinton and bill clinton that they with their impact investing they can help the poor around the world through their investing they'll invest in these people get a return but they exclusively will be able to deal with the situation so here's a guy was prancing around the world the bonnano saying you know we're going where billionaires and we're going to help everybody buy you know through our investment philosophy but behind the scenes he was actually basically undermining the whole

system removing the latter for your children to get a leg up by bribing his own children way ahead of your own children right will you mention by now and you know of course to see pano showing up places like dad you know dad say annual gathering more people reinforce their virtues signaling while they pillage the global economy this recent post there was a guest who showed up who started to point out that davos was a fraud in that they never talk about raising taxes or anything that could actually meaningfully help the people that they say that they're helping and they guy was you know throwing you know a cat amongst the pigeons and i was like oh what is this wake up call and then he ended up on the tucker carlson show and then brought even more truth to that show and then that segment was never aired so. that's the problem again with being

wealthy is that it breeds insecurity so you have to go to these events or these other contracts or get your kids into school all are ivy league schools because if you don't you begin to kind of dwell on the fact that. if the very superficial money that defines you as your person is taken away you have nothing left you're an empty shell you're just a mechanism to channel this nonsensical paper money through to. keep those that are in the business of this council in effect of getting the early benefits to themselves in business so we have a shrinking pie and there's a very huge political civil wars going on red team blue team you know the red team is the republicans and they're nasty and they don't mind being nasty they're they they're out front with it then you've got the social justice warrior side the blue team the democrats the hollywood the wall street and they all do good they they

give to charity all of the celebrities that got caught out in this scandal felicity huffman and lori loughlin they gave hugely to charity to charities that help disadvantaged children and yet they themselves were actually behind the scenes pulling the stepladder away from anybody to be able to even get on to the latter in this case this guy is pointing out that bill mccall ashen who is a pit in my eyes is the modern fantasy that the rich people who read the modern world who monopolize the american dream for themselves are the solution to rejet our injustices and obviously bano is a very huge friend of many of these celebrities of all the billionaires and all the presidents of the united states and he gets to hang out with these people and he gets to basically allocate your taxpayer funds towards. things that will make him feel better about avoiding all of his taxes for example in iowa he doesn't pay any taxes but he gets basically the u.s.

state department allows him to be so wealthy through the u.s. state department strong arming everybody in the world through trade deals and basically patent and copyright in force mints that he gets huge monopoly rights essentially in the whole creative space there's a marvelous there's a predatory monopolist as is bill gates that's why the bill gates and hang out because they're both predatory monopolists you know it's a variation on the old fame of white washing you know people understand what the phrase white washing means but then we had. a green washing where you pretend to be an environmentalist destroying the environment like an exxon or mobile then you have blue washing where you pretend to be doing something good with the u.n. while you're doing something bad like abusing kids overseas then you agree mailing became very emotional blackmailing you know corporators of the one nine hundred eighty s. they have rebranded themselves of activist investor right so essentially you know it just comes back to this idea of white washing you know you're committing morally

questionable acts whether you're bought to go or whomever and but you can whitewash this in one way or another through various schemes and mechanisms you know it all starts off with well meaning people like probably bottom feels like he's a really good guy and he cares about people and he probably gives. a lot of money to charity but the fact is like this system as this guy's final twee in history hm points out is what is alleged in this scheme is that someone this private equity guy working with bondo who claim to be working to change the system change capitalism empower others help others rise was actually working downstream to lock others out of a slot that they perhaps deserve but that would instead go to their kit you know this is actually the whole system there are all the side doors. that are probably the louder somebody is shouting about. you know wanting to help others and do good

for others you know you can think of big global churches there you know the more they're shouting about how good they are and how much they care about poor people and are helping people often it's just covering their own guilt about opening the side doors just further insecurity security that's why i see all these elaborate schemes for example and serial killers you know they try to whitewash or to the contacts for their murders ok these guys are morally corrupt and they're bankrupting people and they're cutting off access for for success for many people but even add to that level of actual no good neck like paul manna for it the fact is the new york justice department basically enabled a much shooter fraud trillions of dollars in the mortgage market back in two thousand and seven they continue to cover it up and now they get to throw you one guy who they said they're going to destroy and see their what their tough crime yeah sounds like a brazen con anyway we're going to take

a break and when we come back much more coming your way. america's policy in iraq has never been a smashing success but apparently there's still room to make it worse the secretary of state's recent visit to the region was full of bold pro-creation. reversals what is trump's policy in iraq. honestly i had left it and i thought this wasn't.

as of those are those are the. authors of the list. you can check them sam is very keen. on your games have a resume and then and we can't do you can meet in texas says the boys in a sniper's nest encouraged them to. do so. welcome back to the kaiser report i'm max kaiser time now to return to our conversation with carl benatar of market hyphen ticker dot org car welcome back thank you very much vexed by the way i should mention that whenever our people stop in the street they say what do you have in karl back on and out this is karl

denninger jersey our favorite guest anyway let's get into it so the notion of am and seen modern monetary theory has swept much of the american left recently first of all what is it and then we get into way think of it but what is it supposed to me i guess you could just call it startle ism which is sort of what it is as art which sounds an awful lot like charlatanism and that's essential which got it's the premise that the amount of currency and debt that you issue is of no consequence to the economy dead the government essentially uses taxes to mop up excess liquidity and not finance its operations and the only poultry that you will pay for using too much of this is a higher inflation rate. it's is that they leave that last part kind of in the footnotes. but that's where the real problem comes from with that the thing that

doesn't make much sense to me is that basically you're still relying on a group of people at the center of this kind of command and control m.m.t. style of doing business to somehow manage the economy based on their. their their their their thing their kind of intellectual ability but not but not relying on market signals say not using market signals anymore you're using a group of people's judgment and their subjective judgment went to it's kind of like worse than keynesianism maven it's like keynesianism but much worse carl well keynesianism at its core was the premise that during boom times you increase taxes and you fill the coffers with with money and then during busts you used to use that surplus to try to level out the system the problem the gains you newsom has is that

human nature is that during booms you won't raise the taxes you won't put away the money you'll immediately spend it on various programs because of course there's a problem there's no reason to save anything because everything is going well it's all swimming and then when things go bad there's nothing to do it with so you add more debt on so keynesianism in practice ends up being a mentee. but empty is just a flat out fraud and the problem with it is did it it puts forward the idea that you can print value and that of course is impossible you can't push a computer button and emit cars or cause a surgeon to operate on you and take out your diseased gallbladder there isn't any way to do that and so the premise that you can somehow push a button to make these things happen as opposed to actual. human labor making them happen is nuts and kind of repudiate the whole idea of modern economics going

back to you know adam smith an invisible hand and all enlightenment as a matter of fact so i would i would posit that you are probably not a big fan of a oh say and her i.d.'s but the question i want to ask why as you know can you blame millennium goals and the younger generation for wanting to knock down the corrupt pyramid scheme that ponzi tilting while from the young to the all you know they then millennialists they're getting the short end of the stick they had the baby boomers like myself took it all as a r.c. is holding out something that they believe will be the election or the cure of all this so can you blame them caro oh of course i can blame them if you have massive aid in your back. drug pusher hands you a bunch of pain pills and says you know here this will fix your problem but you weigh four hundred fifty pounds and you're eating five bags of the readers a day or. two and have cases of coca going down your pie hole. you know if you got

rid of the extra two hundred fifty pounds your back probably wouldn't hurt so much so what are we really playing with your we're playing with people who have have a this does kanye and it goes on throughout millennia it is not just the millennial that do this it's been done dozens of times over throughout human history instead of actually looking at what's happened and say ok the fraud in the scams must stop somebody ins you a cheap easy way out whether it's the drug dealer on the corner or it's see this is here just take this it'll all be fine. and that sounds attractive it's especially attractive when you have a very attractive very physically attractive young woman that's pushing this montreaux instead of the evil old hag like hillary clinton and so i'm not surprised that it's taken off but it's going to it's extraordinarily destructive you know

this interim tea thing several years ago i was on a segment with lauren lyster would she she used to be on her t.v. and we did this with one of the proponents of this this promise at the time she wanted me to have a no one on one debate with him and i did i don't remember the gentleman's name but basically what i did was i took a twenty dollar bill on a year tour half instant see i just doubled your wealth now you're to. see. the impact was instant is that we don't even see the silo but wait a minute no you didn't. but see that's that's what you look sort of the i.o.c. and others are trying to offer here yeah well done on that i remember the show and it kind of shut down that debate pretty quickly but you know it's interesting is that they are saying she's the i.c.u. isn't the banning in congress recently took on an executive from wells fargo wells

fargo and she was asking trying to make a connection making the point that about a pipeline causing some environmental damage and saying in a basically said wells fargo take some responsibility for this and that was fargo executive was pointing out that you know they're not the managing the pipeline they're just funding this pipeline and you know they're not they're not the person to talk to any yet. we if she dug a little deeper you know and the question became remember the exxon valdez when blast masters invented the current the false wop exonerated them from that problem using derivatives mr banker is a wells fargo in a fact and we can make the case you fund the pipeline taking responsibility for it but you and we know this from what's going on the industry and insulated yourself from rescue making a risk less bet or risk us underwriting this pipeline and it's another she's she

could dig one level deeper into the into the rabbit hole and start to pick apart the system a little bit you know as if she has actually become dangerous carl you're assuming that she understands enough to be able to do that art harris suspicion she doesn't . is a socially just parroting things and on top of that she should be very careful where she goes with their sort of a line of questioning and thought because let's just say that her or one of her protege you know was with warner somebody like that wins presidency in two thousand and twenty as sort of put some of these policies in place and they bankrupt and kill sixty million americans to she hang on the national mall at noon for promoting the policies to the children fifteen million americans i buy that same sort of derivative standard i think she gives a date with the gallows ok well yeah i know i'm always willing to talk about the gallus you know it's always an interesting conversation but we got to move on so

what what if you were giving them advice exactly what can we tell them you know they say millennialists you know what can we give them to do and tell them like how to fix this i mean i got some ideas in a car what would you say you have to stop the medical scam for starters that's the very first thing because that's twenty percent of the economy right now it's one dollar and five and it's going to bankrupt the nation within the next six years if we don't stop this. when it becomes exposed the government's funding model is going to be severely disrupted and there is a risk it may collapse now either way you're going to see extraordinary increases in cost of living across the board applied to everybody and the people that are going to get hurt the worst of the people that have the least i just the way it works so that needs to stop and it needs to stop now and then the other thing that we need to do is we need to take a very close look at this so-called clickthrough consent model that we have with really essentially everything today and that needs to go away. and i've got some

thoughts on that and some stuff that i'm working on it's difficult to craft in such a way that it doesn't become un-american really but at the same time the idea that essentially these extraction based business models are all that's left and we need to put a cork in there because true innovation gets crowded out by bad investment and if we don't find a way to make innovation worthwhile real innovation we're going to handle any and that and productivity is is what drives the world in the end reisa my clicks consent to talking about it's every easy to click the times i can send you a grant it to the terms that teens say. of this model and within that myriad legal document if they actually are giving away a lot of rights and you hear your ear and posing this jacqueline futile layer into the economy they've got about two minutes left new york is going after

a lobbyist palm out of form for mortgage fraud you covered the role of banks and industrial scale robust signing another mortgage fraud back in two thousand and eight karl tell us about the role of new york in giving cover to the big banks for their trillions of dollars of crimes of all metaphors going to prison and is going to probably go to prison again under new york's law because he was an associate of donald trump's there the number of people who pulled something at least. equally egregious is what he did in the mortgage market and got away with it not just in two thousand and eight and just prior to that but all the way to today is literally without the ability to count so you've got one guy that gets busted and you know then the state of new york sees that well you know he didn't really get along at all since the way we kind of see things at the federal level solicit charge him as a state prosecutor with the state crime that sort of thing is ruly and it's nasty in we as a body politic you'd better put a stop to that because if not that could be used against anybody so we're entering

into a period now where these big platforms like as you point out the click consent model getting back to the monopoly discussion we're having you know they're abusing their power that's an abuse of power and they are becoming political hammett's and so either you use posit you say let's just enforce the law against these big tech companies or need to break them up but where who's going to enforce the law carl it seems like the entire system is corrupt how do how do we go about enforcing it we've got about fifteen seconds i don't see anywhere right now unless the people in this country rise up and demand it and are willing to enforce that it's going to happen because there's just no impetus are either side of the aisle to actually go stop what so this twenty twenty alexion coming up it looks like the democrats are don't have much traction anybody on the outside that looks interesting to you karl you know and that's that's a shame because real competition is something that we are having elections and i i

would think so totally agree with thanks so much for being a once again on the cause or part carl that i'm sure if you already and that's going to do it for this edition of the kaiser apart with me max kaiser and stacy herbert want to thank our gas karl denninger of market hyphen ticker dot org if you want to catch us on twitter it's kaiser report until next time i'll. during the great depression which i'm old enough to remember there was most of my family were employed. there wasn't it was bed you know much worse objectively than day but there was an expectation the things were going to get better. there was a real sense of hopefulness there isn't today today's america was shaped by the

turn principles of concentration of wealth and power. reduced democracy attack solo doubt engineer elections manufacture consent and other principles according to no on. one set of rules for the rich opposite. that's what happens when you put her into the hands of a narrow sector of will which will is dedicated to increasing power for itself just as you'd expect one of the most influential intellectuals of our time speaks about the modern civilization of america. america's policy in iraq has never been a smashing success but apparently there's still room to make it worse the secretary of state's recent visit to the region was full of bold proclamations and quiet

reversals what is trump's policy in iraq. we shouted to the former soldier that i. have begun i've got to close that one but honestly i'm not going to another good kind of once in a month. in office anyway i was just some would not i'm a classic i think it was to just make sure they're ok so motionless on his own by the ocean of the foot of. the. doesn't up.