when you know it's all very basic winners and losers and the markets are winning and we're winning and it's a very simple message and they're making new all time highs and either that's an economic phenomena or there's something else going on and if you look at the statistics of the history and the trends it looks like it's trading at a phenomenally overextended level. 2 percent of g.d.p. and the stock market which is warren buffett's favorite metric to determine valuation overvaluation if you just for stock buybacks is trading for all time record price to earnings multiples right if you were to strip out the stock buybacks which up until recently were illegal even do a stock buyback so this looks like nosebleed territory but it's been this way now for a few years and it doesn't seem to be any stopped any any any any stop sign in the road it does seem to be any end to this for years i'd say all through the ninety's and the early 2000 most people in the market still had memories of real markets

that you would genuinely that there was no fed to rescue everything so since greenspan in the introduction the put you know it took people a few years to realise that any. time any even a slight i mean when when markets go down 11 points the fed intervenes like so the fact is that. people now are the opposite of what they used to be they used to expect a cycle now they don't expect a cycle every participant in the market does not expect a cycle to ever be able to fulfill itself so that the fed will always interview of course i think that makes it probably more dangerous for when they do lose control or when fewer and fewer actual people are participants in it so the fact is like we know something like you know 85 percent of all stocks are owned by the top one percent so it's not like everybody is participating and the fact that we keep on pointing to this thing hey look this magical bowl of you know is glowing and this

means something to you but it doesn't mean anything to anybody of course. donald trump this is what he looks at he's the new yorker this is what is defines his reality and he says down now is that chasm p. 500 closed at record high so he was super happy about it well for most of the american history there was 0 is a competition for capital between labor and wall street main street and wall street they're always competing for capital and during the reagan years the reagan thatcher neoliberal period that we can look back in now look at with some hindsight we see that when reagan fired the air traffic controllers any fired the gun to dismantle organized labor in america organized labor has been demolished in america and the average income for americans hasn't budged at all in 2030 years because they were neutered from their ability to compete for capital labor has no seat at

the table labor has no seat at the central bank labor has been abandoned the jobs have been shipped overseas wall street now gets all the capital they get 100 percent of the capital every dollar printed by the fed goes directly to wall street now and bypasses labor bypasses wages just goes to wall street and furthermore the deregulation juggernaut has continued to pace now since reagan so that all the rules in place to try to keep excesses from developing on wall street have been removed and so the question is is this the end of a cycle it's at the top of a bubble or are we going to see dow jones up another 100 percent over the next few years i think everything the way it is now you can see the dow doubling from here because there are the rule of laws been obliterated when it comes to wall street as part of the doctrine put up by eric holder you have unlimited money available at 0 percent interest or wall or the fed pays you to borrow money that's not available

to anyone else in the labor market and. the trend toward taking everything private as i've spoken about on the show many times tiffany's just got bought out and the number of mergers and acquisitions is continuing to. to go forward trillions of dollars being taken off the table i mean if we're all playing monopoly then all the major pieces on the monopoly board are being owned by one or 2 private equity guys and then everyone else is going to be basically in that one square on the monopoly board called jail we're going to get to a headline about the 4 chilean dollars pumping up the stock markets the fed intervening but before we get to that i want to quickly look at this other chart which is the stock market seems to like donald trump more than any president since the 1950 s. stock market performance was number one under f.d.r. number 2 under truman number 3 under eisenhower and 4 under trump of course f.d.r.'s boom was after the crash and the introduction of massive new deal you know

giving money to workers to you know build up our infrastructure across america and replant trees and agriculture that had been devastated by the dust bowl number 2 truman he came into power in 1945 right after world war 2 and then he oversaw the marshall plan nato the building of nato so it's a huge works program again i pouring money into lending to europe and also building up the military eisenhower right after truman so again part of that cycle of of this huge money printing for the military and now trump which is just a similar to f.d.r. but the opposite so it makes sense that he would be in the top 4 is like we've had massive money printing and intervention not for the ordinary person but for the oligarchs for the for the wall street kleptocrats it was former chairman of the fed ben bernanke who said the lessons he learned in the central banks learned after the crash in the depression were that they have something. all the printing press

memory had the news press conference he made the statement that you know we should have at that point as part of a few trillion dollars and that's what we're doing now that's all we do now we're never not go stop printing printing is gone x. exponential and retro straights are at 0 and so they need every single prob with more printing and more money more credit and there's nothing stopping a bank from loaning into existence any number of billions of dollars they want to because if they ever make a mistake under the last 20 years what's remarkable is that the creditors get bailed out for making bad loans throughout the entire history of mankind the debtors would be having to face getting bailed out for having made bad borrowings so i think that money printing answer works once and that's the only time you could ever use that because then if you have this on the economy that we have now because that all the investors all of wall street is relying completely on this and they

know that their buddy at the fed is going to rescue them so they're front running the entire financial system that's why all of the gains almost entirely of all gains and wealth in the united states since 2008 is to the top one percent because they're front running the policies that their own friends are putting into effect here you see it in this headline the 4 trillion dollar forced propelling us stocks to record highs this is from c.n.n. and they say the federal reserve's rescue of the overnight lending market appears to be having an unintended side effect it's juicing the stock market the september spike in overnight lending rates revealed that the plumbing of the financial markets is broken banks and other financial institutions simply didn't have enough cash the fed acting as a plumber started pumping in lots of cash to ease the crunch they claim with unintended consequence no that's the policy you know that it's as one been saying for years now the policy is to is financial engineering is financial here

a geisha and they let the water flow of money liquid. he go only to their friends on wall street and labor gets nothing and so is it a one trick pony well it's a system that's in collapse in other words if you if you have a water main break in your neighborhood and nobody stops it the hole they were gets flooded until the neighborhood is finished right so we've got a leak at the fed to get to a leak of the capitol's leaking out there's a flood of capital without any constraint whatsoever there's no dam there's no barrier there are no laws there are no rules there's just flooding the pockets of a few people and it's in the end it will kill the economy that'll get it's killing the economy it's the economy is dead it's dying and this is i believe a trick they're diverting the attention of the media and all participants in the market to look at the rising stock prices because that's easy to create and manipulate what's not easy to hide is

a collapse and pile of debt or collapsing banks so the actual the repo markets and you you know we don't have time to go into that here but just google it research it yourself it's getting worse and worse and there are signs that there's some major major bank about to collapse or perhaps its collapse and by the time this could even air in addition to temporary cash injections the fed reversed course by promising to purchase bonds a ton of them after months of shrinking its balance sheet the fed that would to buy $60000000000.00 with the treasury bills per month through the spring of 2020 as a result the fed's balance sheet has swelled by $286000000000.00 since early september to 4 point 05 trillion dollars i get the warnings but the warning signs been flashing for 20 years and you know they getting worse and worse and worse but that doesn't mean anything because the system already broke a long time ago and all that's happening is that the people who are benefiting from this free money are not stepping up to stop it no one is going to stop getting the

free money and the people that are being destroyed by don't have agency. they don't have political clout to stop it so there's this is just going to continue but as you see donald trump is distracted by the rising stock price many people were very very very simple human beings were simple were simple people as a society we're all going to look at that scene and b.c. is celebrating at c.n.n. is celebrating everybody's pointing at that so nobody's going to look at the that actual what's going on in the repo market except for us and of course we're going to get blamed for it when it all comes crashing down because it's all psychological those say and we psychologically warfare against people and the market so that's in fact with c.n.n. says part of the impacts could be psychological some investors have been conditioned to buy stocks when the fed is growing its balance sheet such a strategy worked well in stocks or during the 1st 3 iterations of quantitative easing known as q e one q e 2 and q e 3 whether it should be considered q.e. 4 or not in the eyes of the markets it's just semantics says peter blute far chief investment officer obliquely advisory group so he says markets look at these

increases and they're going to buy you're going to buy in if the fed's balance sheet is going up you've got to buy don't fight the fed right so without any. rule of law then by crime. it's going up for us we need an e.t.f. . all right well we're going to take a break and when we come back much more coming your way. tonight. in this community there are people who believe that it's ok to sell practically

food on my table it's really hard there are no jobs and you see that i've got kids that ask and as a parent. i can come up with arguments there's a lot of conflict within the game between the 2 most of the conflict i would say over balls around morning and most of them is me. close one of the children's cosimo each other is good business the state of california alone makes $6000000000.00 a year of prison complex just to get some point in your life where. you don't care anymore nobody cares about your so you don't care might anything.

welcome back to the kaiser report i'm max kaiser you know back in 2012 a film of paired called the 4 horsemen and it was incredibly popular and it continues to be popular i knew to this day because it outlines the big problems facing the globe both economically and socially the director of the film is with us right now ross asked prof welcome back to the kaiser report thanks for having me ross you've just returned from a trip to new york any observations to make of what you saw in the greatest city on earth we try to make a trip twice

a year to make programs because when you're broke us and you don't speak to americans are such brilliant orators it makes your job a lot easier. to be some really excellent people one of the things that was really striking for me things firstly the infrastructure around new york really really needs some attention and it does the same. it is getting that now without political 'd will or just miss out misallocated capital 'd you know but firstly the infrastructure is tired 2nd thing is the public she writes that i've seen a scene in noticeable difference over the last 121218 months and also you see the nice little difference. i know retail is getting a battering but it's mold and so the 3 things are still what i would say is the food it's amazing the people are absolutely spectacular and the customer service well when you come back to london having how dacosta so this it's very difficult sort of climate science now what's interesting is that in new york city you have

projects like the highline which is on the west side of manhattan they converted to an old rail track that connected warehouses in the meat packing district to a public park and they spent about a $1000000000.00 doing so and then all the real state along. on this 2025 block stretch on the west side of manhattan the laurel west side has been blown and turned into a multi $1000000000.00 development has been a huge boom of course after $911.00 the downtown area in the washington area as had multiple building projects there's a huge boom there are the billionaires row on central park south which has the more billionaires than one building probably anywhere else in the world that is a boom but at the same time the the subway system is in decay it's falling apart they can't seem to build any decent subway public transportation is is in disarray so it seems like it's an in a capsule ation of what's going on in the rest of the country and

a rest of the world there's a concentration of billionaires at the top and they've got luxury skies pentasa in the sky everyone else seems a ping there's no funding as the funding for transportation is now funny accent or a is that a fair assessment you think. you're the guy's a birth guy called henry george and he talked about the line question this is exactly the same thing happened in london with the cheap illegal and and as soon as you put public infrastructure in place which is page full of the text what you do is uplift all the land values so that piece of public infrastructure serves now if you will. example of doing it properly and doing it well and having the infrastructure pay for itself hong kong did it by using loans x. now if you're not going to tax unearned increment. lift and learn values you're going to get a billionaire class that you go and i was bernie sanders says everybody and that is

a policy error well if he wants. an area to focus on to reform the tax system to capture the understanding criminal and then socialize that socialize those rents then infrastructure is exactly the place. we should look right you mentioned one kind there and of course up until 1907 it was part of britain are am some kind of state of britain and then they they changed in the pan and now you've got a situation there where they had enormous wealth they've had property prices bombing but that you've also had social unrest and you've had an enormous pushback by folks on the street they just had an election 75 percent of the states are now held by the democracy movement what do you see happening in han kang is that is this death a good they're what we call the global insurrection against banker occupation our job oh they they is this again is this a flashpoint in the global struggle of the people versus the banks stars ross yeah

but look it's happening everywhere so there's some wind in chile the famous sign the woman was holding is saying near liberalism was born and this is where it will die well she got a near liberalized to cull of it you then start to get the billionaire class and all the socio economic indicators going the wrong direction because we know the rules in free. or in a society in the near liberals have. only world this ideology which is inherently unsafe human. but it's very pro banks as you say so as soon as you get a new liberal us economy you're going to get this on going so decades and hong kong is just one canary in the mine chile is another south america cross south america and remember this that what we're seeing in hong kong is really pushed by the mainstream media because they have

a narrative they have an editorial line and they want people to see those protests notice how serious protests you see in paris for instance or the chalets you know again they're protesting. a fuel hike they're protesting near liberalism they don't want this enable why is they living paycheck to paycheck. and quality of life is letting him prove the media will trump it will sort of protests ignore another because it suits their agenda for a mention chilly there and of course they also have a 911 and that was 911 back in 1973 when their democracy was overthrown by basically u.s. led. and their liberalism or that the doctrine of milton friedman has introduced and this was really a monetarist school of economics i just tweak the money supply and somehow this leads to growth and we have the result of this now 4045 years later where the central banks who are controlling the monetary spigot the monetary policies they

have this great prop policy where they print trillions of dollars they give it to their friends on wall street 1st who buy assets with it and there trickles down through the economy every single layer where it doesn't what doesn't well what i'll do what i was going to say was that it has the effect of becoming available to other parts of the economy but at higher and higher interest rates so yeah i get a payday loan loan at 3000 percent annualized return it started off as a 0 percent loan to a billionaire on wall street but you're point the money doesn't trickle down is not a fact of money velocity which is a kind of a measure of how how much the money is trickling down is at historic lows it's almost at at 0 and we see a lot of distress in these financial markets what do you have you been following the repo market and the new york fed is bailing out the market same to seems like

q.e. 4 they're just not calling it q.e. for its multi 100000000000 dollar programs every week what. they call it q.e. well well what is it going to be the whole market really of a centrally planned. she will carry city what it is. carry infinity because like pringles once you pop you can't stop and you're in the u.s. and the u.k. across developed economies the japan if occasion is intensifying and we have in thoughts when we talk about a laundry who was ousted and killed in chile and then british a put in place and sale after that piece in the film which as you rightly refer to as the 1st $911.00 junkie covers it off and then we go to an animation about vietnam and how it loses its purchasing power over time by the people who really needed at the bottom in the real economy and i said about him i mean the bottom of the triangle the people in the real economy the teachers the farmers the nurses the

people who actually have barely touching power of that money at that point has diminished so much that they have to go and take on private debt to augment their noted salaries and also the value of that money so those people at the top of the pyramid the guys that you mentioned. the bankers the central bankers cetera giving it to left friends they have a i mean it's not even a headstone or an advance it's total no no. and it's ironic isn't it warren buffett who often refers to gold as the barbarous relic isn't it interesting that throughout his career he has been the recipient of this money right at the top as it as it comes out the spigot and then deploys in different areas of the economy it's no coincidence that he's sitting on the cash polity sitting on now why because very simply the game is rigged so buffett has got a big cash pile

a $14050000000000.00 aside he's got nothing to do with it and austan so i just came out recently that just under 5 trillion dollars a sitting in bank account ceiling 0 doesn't nobody knows how to do it there's more money as an economist a classic liquidity trap they say there's always going to happen you know. it did and this money is stagnating the night she came out of a meeting today. bunch of investors in london and there's a lot of american money now chasing any kind of do not even really doing that you diligence they just want to deploy capital because they have to and that means that really bad ideas get funded and this is classic you know this is misallocation of capital not only in a curious about right back to the crisis instead of letting banks go bust and drill and clearing out the deadwood what we did is we prop them up and again now from that moment from that decision. so now we're going to continually misallocated capital we can we count on the repo market back to that is just the canary in the

line you know and of course they can't call it q.e. full because it would go because the markets right tremor but i feel pretty nervous and and it'll work until it doesn't you know in your film the 4 horsemen it's it's kind of like a infection all fictional television we have cells like the wire or the dish where they show multi dimensional aspects to a problem in the 4 horsemen which they mount $22.00 obvious showing the multi dimensional aspect of this so the bankers do it the bankers do but they can't do it without what we now now jamie diamond is involved with per the recent filings and prosecution a racket there's a racketeering amongst all the elites in the political the banking and the media class are involved in a racket ross yeah look you know as i said it works until it doesn't i mean you know we're here in the u.k. in the us the systemic strolled and the malfeasance that has gone on is simply

staggering we were here on a program they were going to go ding under uncovering. picture old one of the banks over here working with one of the police and crime commission has. when you tell people we working with the lawyers on it they just simply don't believe you because this. of this is is just is it is own sizeable that is the business model 'd now that is the asset stripping the political favors the you know that it is getting in bed with various political parties to be able to milk the financial system so you'll gain rent seeking changing rules this is now apparently business as usual and overseas are going to go obama doesn't get away scot free by the way he had that meeting with those bankers and he said listen only thing standing between the public and you pitch folks basically is me and that was him and what did he do you decide it's a bailout of wall street not main street massive mistake and we're still living

with the consequences of that now that's why well the reasons why inequality is going through the roof while just like the 4 horsemen i am mesmerized by your expertise i must hold you off for another segment if that's ok ross yeah all right that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert like to thank our guests ross asked roth if you are a just on twitter at kaiser report that i. am special it's something we can thank the many. yeah but also elsewhere. you thought the whole doping in russia i think was over for get it. over to before me i'm talking about us who have lost they are some of the models of.

russian outlets eligibility for the international competition season state this includes events like the tokyo lympics and the people world cup in qatar from miami that he has last real chance that you know where he's coming out just as it was 4 years ago moscow anti-doping clapper said to say. of the scandal so who tampered with the doping samples database and one does greegor you want to give have to do with it and yet she still does restart the ball doesn't mean you know. about the little spots will not use a push on the machine at the dealership might expose me in the ocean touch a little bit so the polish you know the notion of. thinking of getting a new trick on the ones we got in here shows no problem was as he didn't know until he was trapped in this tiny little wired coach you don't need a crane with him the wall just. reaching out into the wall when it's freedom

anywhere near. a leading dogs or caged in the into lane conditions on puppy farms i mean 67 years you know they've been locked up in cages outside you see no protection from the weather the heat you know the cold air the rain the snow the funder nothing they have no protection. you can't get what you. get through kid. across the u.s. cruel puppy mills are supported by dog shows and pet stores most of the puppies that are coming from these large scale factory farming kind of operations are being sold and at stores even giant a good businesses are involved like cargill among santa there has been a shocking amount of organized opposition to adverts to increase the standards of care for dogs bred in commercial rating for so many most of that opposition is coming from huge agricultural groups and industries that have nothing to do with jobs don't buy dogs on o.t.

. and we're going to fulfill the repeated purposes of politics to the people i promise to be you know we've all bots the people to. be ready for a. now you want to. know.

this hour's headlines stories nato leaders gather in the u.k. to celebrate their military alliance 70th birthday but while some hail it's all there is question its relevance today and we have probably. the most successful laws in the history of the. head all of the some of the trumpet ministrations frightens walnut member nation with crippling tar of tension making the event even more awkward it's focusing on french. bipartisan u.s. tech companies. also ahead 2 people were killed in a democratic republic of congo where demonstrations against the u.n. .