because the report and you now as we continue with the lock downs and the bailouts because of the lot downs from the coronavirus couvade 19 pandemic situation sweeping the world fairness is what justice really is and that was a quote from potter stewart who was a supreme court justice member center day o'connor took over for him afterward fairness is what justice really is so as we look at these bailouts and the lack of fairness that we've seen. since the intervention is fed days so say in 1907 when the plunge protection team and alan greenspan came to the rescue of the bad bets made on wall street in chicago. and ever since and we've had more and more and more unfair system it starts up a little bit unfair and as we see like a little change of direction way back then in history becomes a huge gap we see that with the wealth and income gaps and we see that with every single crash and the subsequent bailouts gets worse and worse towards the very

wealthy and the connected so when we've already covered the trillions going to the banks instantly and the fact that the ordinary person is struggling to read well you know waiting desperately for the stimulus checks to arrive to them the measly little ones you know when the fed is buying these collateralized loan obligations you have to realize that 81 percent of them are owned just by j.p. morgan wells fargo bank of america and citibank just those 4 banks own 81 percent of it so those are the guys getting bailed out by the fed in the meantime u.s. housing j.p. morgan chase to raise mortgage borrowing standards as economic outlook darkens it just got harder to buy a house from tuesday this week customers applying for a new mortgage will need a credit score of at least $700.00 and will be acquired to make a down payment equal to 20 percent of the home's value but this is the mantra.

saying concept one of fairness as it relates to the economy and it's not really baked into the american system is not designed to be fair because fair is what is fair for one person is unfair to another person and that's a highly subjective term what america relies on is free market capitalism relies on competition and that if you are successful competing then you succeed remember in america possession is 9 tenths of the law now if you don't compete successfully then you get thrown out of the game basically but that's the way it is in the united states and. having said that when you talk about banks being bailed out by the fed and you talk about all of the high yield bonds being owned by the major banks and they are being bailed out

that's clearly unfair but the response can't be that we need to institute more laws because we already have laws they're breaking the laws in the case of this s.p.v. with that high yielding e.t.f. j m k they broke the law so there's a fairness implies and a justice said this and he's part of the judicial system of courts and laws if breaking the laws is without penalty then the doesn't make sense to introduce new laws in terms of the fairness ok these banks took on bad debts that mostly in the fracking sector and they were doing their part because remember time magazine said america the saudi arabia of america essentially that we're not one member we're no produce there well that's because of all the patriotic investment from these banks into the fracking sector they lost money. whole time but they were doing it for

patriotic reasons and they were getting paid the yield right during these low interest rate times and they were me i made a bet a gamble that this risk would pay off well it didn't and now the fed is bailing them out the same thing happened especially since the financial crisis of 2008 is the ordinary american said why need to reeducate myself i need to get retrain myself and you know find a way in this knowledge economy get a degree ok it's going to cost $150000.00 but you know what i'll be able to get a job with so they racked up $150000.00 debt when they graduated from university and lo and behold it all falls apart j.p. morgan wells fargo citibank bank of america have their bad debts bailed out the same ordinary 340000000 americans go oh cool so the thankful for my government and the central bank bailing out are bad bets here's my bad. sorry we don't have enough money for that so that they feel like the ordinary person feels like this is unfair

somehow that's jamie diamond you know bad bets get bailed out over and over every single time it crashes my bow bad bets never do yes and that's why on this show kaiser report we have put forward the notion that you will never achieve fairness in the economy that's based on money if it's controlled by banks stores and central bankers who can print 10000 for them and one for you and it doesn't and they are free to break any law they want the only riposte is bitcoin and gold particularly big coins bitcoin disenfranchises and d. capitalizes i'm not for decapitating anybody but i am for be capitalizing all the wall street bankers by shifting the center of gravity of money from the dollar and fear to bitcoin and that's perfectly within our purview within the current scope as

global citizens who wish justice justice through free competition and hard money that's the only justice that matters that's sustainable that's real that doesn't rely on politicians venal politicians that are so easily bought and no politician is easier to buy in the world than the american politician you can get a lot changed in america for $100000.00 european countries a cost a lot more to bribe a politician in america regarding this j.p. morgan policy of making it more difficult to get a mortgage here's what a former manager at goldman sachs says j.p. morgan made it harder to get a mortgage today raising borrowing standards to 20 percent down with the credit rating of $700.00 plus that's interesting because boeing has a junk credit rating a credit score of $500.00 and they're allowed to borrow billions from banks and governor. i revolution is coming funny no it's amazing put in the context of again

central banking because central banking was supposed to be the lender of last resort and central banking was a buffer to the system so in moments of extremists like a pandemic it should be easier for people to borrow money and to acquire or to preserve wealth or to buy a house but instead it's become more difficult because the banks of the central banks are heading toward feudalism and we'll talk to dr michael hudson about that later meanwhile look at the interest rates for credit cards the money that is borrowed by big banks is 0 it is sometimes less than 0 j.p. morgan one point last year was paid to borrow money every time they borrowed $500000000000.00 they were in charge interest on it they were paid interest on it meanwhile credit cards are still on average 20 percent they never changed and yet those that matrix of interest starting with the fed funds that discount rate and the prime rate mortgage rate should all be moving in tandem with each other the

fed funds go down that's the purpose of a central bank so it shows quite clearly that the central bank is not operating on any level of adequacy on any in any sense of what it was chartered to do it's now been co-opted entirely by the kleptocrats who are simply using it to steal assets by printing money and then buying those assets with the free money they get and they have no interest attached to that money disenfranchising and creating a new serf class or peasant class in america when you're about 1x7w2xw people unemployed that's great because those we need those peasants to do peasant jobs but we don't need a middle class in the not not when the 3 have trillion that's collected in taxes is used as towards the garbage compare that $8102030.00 trillion that's printed to buy out assets on behalf of the club to kratz. so remember what i said is like it started back in 1007 with a little bit of intervention and then it goes to a little bit more intervention and 2002001 and then of course even more

intervention in 2008 and now we're in 2020 and so if you look at this round of global q.e. as just unprecedented and you can see this is 2020 versus 2008 huge difference of of magnitude orders of magnitude it gets exponential you're going to see this exponential growth in the assets being taken private being taken away we've seen that with the share buybacks member of the federal reserve is supposed to regulate these banks and they're supposed to somebody supposed to oversee these corporations and go ahead. i would like put out my next bill that i was down but that will be interesting to look at you can't say for a policy scheme songs go higher well in fact you see that little tiny taper they try their little tiny tiny tiny taper and it caused it to help caused this collapse we just saw we'll need of goldman sachs say that j.p.

morgan is toughening standards to the ordinary person but boeing is junk redid and they're getting free cash well boeing is junk rated because they hollowed out their balance sheet through share buybacks $100000000000.00 in the past 5 to 6 years and that led to them being unable to build airplanes that fly because they had to fire all the engineers in order to make all those share buybacks and now i want to point out that something that you've said you know because they are getting bailed out boeing airlines and all these other industries that hollowed out their balance sheet through share buybacks well they are being bailed out and there's theoretically there's no way to enforce this there's no enforcement clause but they're supposed to. share buybacks now you say stock buybacks won't stop they'll be rebranded my guess is. rebranding is share retirement programs leveraged earnings programs opportunity enhancements earnings inflation see programs net

result exactly the same a stock buybacks equally fraudulent. stock buybacks won't stop there's some talk on mainstream financial news like oh we can't possibly just keep buying back our stock and just use that money to pay ourselves dividends and reward ourselves huge increases in salaries oh that's very unseemly so they will break branded and they'll say well it's earnings and passed on programs so on c n b c they'll say this week you know berkshire hathaway decided to engage in earnings and has been programmed and they expect to have an enhanced earnings this quarter but they won't mention the stock buyback by name but that will be the earnings announcement program also called something else and they so-called progressive press will never mention it because they don't keep track of the stuff and of course berkshire never paid out on the covert insurance and even though they're a big insurance company but all the major stocks in america have put on catastrophe so they've made out on their insurance. sector anyway we're going to take a break and when we come back much more coming your way.

join me every day on the alex salmond sure and i'll be speaking to the world of politics business i'm sure business. so we've got to do is identify the threats that we have it's crazy. let it be an arms race. spearing dramatic to follow only. i don't see how that strategy will be successful very critical time to sit down and talk. humanity is on the edge of a precipice thanks to continuing destruction of the natural wild.

region seem laid out a lot of bills lots of. losing myself and only if you. let them everything you can hold up. for but. i think that all of the war. or the. dealing in the muslim world as a little boy can sit around and stuff and shit the same thing that disables the. human activity has brought us to the brink of the world's 6th major extinction of it and the people in this film just come take it anymore.

welcome back to the kaiser report time now to go to dr michael hudson economist historian author and blogger dr hudson welcome back it could be back next debt jubilee is finally happening only it's exclusively for headphones of private equity your thoughts on the trillions of dollars of bailout for bankers and corporations i think they have a wish list of all sorts of things that their lawyers lobbyists grown up and just hold out. their own approaches and their court folios and paste. coronavirus billowed on it but. build out disease isn't bailed out the workers

aren't bailed out the small businesses aren't bailed out as you say it's all going to the major campaign contributors and they don't replace a wall straight. laws and rules don't apply. if wall street is caught breaking the law they bypassed small fine or they rewrite the law here's a good example of it the fed's balance sheet has passed 6 trillion dollars and they've set up in s.p.v. a special purpose vehicle to buy a high yield junk bond e.t.f. that's an exchange traded fund with the stock ticker symbol j. and k. for junk now this was completely illegal for the fed to do this but they decided to set up this s.p.v. on the side to bypass the law fracking industry had jumped by boat to go under your head to rescue not the fricker they're not rescued you have to rescue the investors in the directors you have to rescue the bankers and the bondholders and that's the model when all of this is. sheila bair said in the obama bailout

it's all about. what about boss the ad who said if there's looting at the top expect looting at the bottom i mean they're just. breaking the law. i mean if i go into the liquor store and i rob all the money and then i say well no actually i put the money into a separate bag held by a banker and they put s.p.v. on the bag so therefore it's legal why do they think that this kind of example of wholesale law breaking and say and favor a is good for society and dr michael lots of you know what president nixon said when the president does that it's not breaking the law and now i read it sort of taken over the presidency and the financing for the whole $3000.00 is not breaking the law the house tax writing committee is. a democrat not representative neil and he said the 1st thing you did was go to look. you know robert rubin

what to do and his major backers are the financial sector the securities and investment real estate so well there are simply you know. the congress can spend basically a lot o. and they're in the position the president thinks they can break the law if nobody stops you over there in japan they invented this idea of quantitative easing they've been leading the world and lowering rates down to effectively 0 their size their balance sheet on the bank of japan us out more than 100 percent of the g.d.p. of japan and america the balance shape garbage that they've bought back from australia to bail them out is about $5.00 to $6.00 trillion dollars worth but the g.d.p. of america is over 20 trillion so can we expect the central bank to buy another 15 trillion dollars or so of junk to keep the ponzi scheme going the word they use is

whatever it takes that european central bank does and i think that the model here whatever it said so that the one who lives in the stock holders don't lose and it. well the largest stock market jump since the in 90 years last week when the bailouts for the wall street. 6 percent brillion dollar programs him out and the idea is that the economy has to bear all of the low labor small business and industry none of the last should be suffered by real estate or the banks because the loans written by a real estate bank. it's amazing that this is not more drove the bailout is not wrong and the sharks terms it's really black and white and they look the banks and main thing all of. the should go bad because obviously

a lot of something needs are going to go under and at the same time below the economy something passed and nobody's making that unpleasant calculation don't just bank says that there's no such thing as a free market anymore goldman sachs said something very similar last week when they recognize that the stock markets had hit bottom because of the fed and they had to roll powell put which of course is a continuation of the janet yellen put the ben bernanke he put and the inventor of the central bank put alan greenspan the idea that they're in the business of keeping the dow jones going higher and not in the business of protecting the purchasing power of average americans but my question is that. progressives they have been saying that the solution to this capitalism problem is socialism but the capitalists are saying capitalism doesn't

exist any more free markets don't exist anymore so where does that leave us dr michael hudson we're not in a capitalism anymore and we're certainly not of socialism anymore. what system are we is exactly the used to be called state socialism in the late 19th century when you had germany had the trying to reweigh integration between the government the military and the industry and the banking. and you have something similar today the question is socialism for whom will it be socialism for the one percent socialized lockwood's or will it be socialized socialisation or the 99 percent you socialize again and spend money into the act on the make them maintain living standards and wages well obviously we're going beyond industrial capitalism and finance capitalism and finance capitalism have to gain control of the state in order to

balance so. the sort of it artificially inflate stock and bond prices so we have today is asset price inflation and it's the same time you have waged replay ssion and the equation of prices consumer price inflation so they're there to look kind of means and to price and one for the one percent their assets and the other the economy and their wages and rates and now the us budget deficit is due to head 3.8 trillion or 18.7 percent of g.d.p. on top of the trillions being created by the fed appears we have an empty modern monetary theory for the bankers people are asking why they even need to pay taxes that the government and fed can print so much money and are we have so you know here's another idea you've been talking about m m t a it seems to be a banker said yeah i like that idea but only for us right to steal dr michael

hudson this idea as i'm going to create it for our own private fifes i'm well at the irony that the founders of m.m.t. . from the 1950s hyman minsky and all the best of the universe. you know sirius and the city we all wanted to use the government's ability to run the deficit spend money into the economy to push up to a cheaper $1.00 for a month to raise living standards to finance public infrastructure spending so they would net the private. and so basically help the economy grow and this was all attacked by the monetarist and so listen wait a minute if you can create money through the people you can create money for us the one percent and the one percent looks at the economy industry and the people is over it always people just wanting our money you know to live on when the money really should be for us and for our wealth workers who are getting sob living wages

and meat packing or in delivery services are getting economy a are now in a position to raise their wages you've got a long history minnesota 1st and just such kind of worker activism our workers out a point where they can start to bring back organized labor and bring back wage you know with the power of collective bargaining are they going to blow it certainly motivated to simply over the issue of workplace safety and protection against the the virus and and the fact that they are being laid off it will buy the employers with really no. backup so you think that the whole health plan. of the points raised by bernie sanders are certainly going to catalyze that they don't organize it means that they are just going to surrender quietly and make the

economy end up looking like greece everybody. is poorer and poorer they get on happy they commit suicide or they emigrate and there lets them start that's really the alternative they simply cannot. imagine what's going to happen in 3 months when all of a sudden they haven't been employed all of the written notes and then the band is going to fold do and the restaurants and small businesses they were worth can't afford to open because they can't afford to pay their rent which is their largest expense for the last 3 months well they've been shut down they're going to be wholesale unemployment almost no small increase if this doesn't trigger people acting in their self interest i don't think anything well my theory the max keiser theory of neo feudalism that we are returning to the state of a feudal political style stanek out amik model where you've got now peasants and

oligarchs and that's it has certainly the banking all the arcs are just being. you know flooded with trillions of dollars and people can't pay rent anymore and they're going to be forced to suffer a subsistence living of clicking on ads on facebook for a protein pal if your vast knowledge of economic history etc is this a is this a possibility that we end up with a neo feudal model going forward dr oz if i think that's exactly the model the difference is that in feudal times it was the landlords the descendants so the military contrary soon made it england and europe who ended up with all of the surplus and the form of land rent and the day the role of the landlords and the 19th century you know it's been replaced by bankers because rent is now being paid essential a by as a mortgage interest to the bankers and the idea that the debt

should be increased to the point where all the leaves where is the minimum expense of living now and like sir. and you know as i'm be. they want you papers can live wherever they want but who are they where they're going to have the mortgage interest to buy a home for 2 thirds of the population or are they going to have bedrooms that cover the mortgage interest paid by the absentee owners. for their mortgage and so anyway we have a mobile population they can live everywhere they want but all the money in their paycheck over and above what basic living costs food and clothing. are going to go so the financial insurance and real estate sector the fire sector in the form of debt service rent various forms of insurance because the surface of

nafta quarantine you could argue that they actually had us appear your lifestyle anyway dr watson thanks so much for being on the kaiser report it's always good to be writing and that's going to do it for this edition of the kaiser report with me back to kaiser and stacy herbert like to thank our guest dr michael hudson and look them up if you don't read his books you probably don't know anything join catch us on twitter it's kaiser report that's next time. wrong. just don't. get out. and in again. will supply. chains to look for common ground.

thinking of getting a new book on the ones we got in here she's found out why he didn't know until he was trapped in this tiny little wired how much we're going to need a crane with the wall. freaking out and he will want to spray him anywhere near and thousands of breeding dogs are caged in the in human conditions on puppy farm i mean 67 years you know they've been locked up in a cage outside you see no protection from the weather the heat you know the courtier the rain the snow the funder nothing they have no protection. to get what you. get through kids. 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 in stores even joined a good businesses are involved like agoa mom 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 dog on o.t. . that is just a resource i call don't listen. to the link these 2 guys they can be sued usually the clue for. you to defend a cool ship fly off to sit next you don't. assume i shall say the. sort of the.

not like. the german government prepares to gradually lift the nation wide lockdown and saying the. right is under control however the refugee shelters that have seen infections drive for the last 6 to cup. as large as face phosphorus and to mix this is the 3rd or 4th pandemic that came out of china u.s. politicians continue to blame china with one republican senator pushing washington to respond with sanctions and. see how the fire is lit in jerusalem he said separations to get underway although

thousands of churches around the world stand.