oh max kaiser this is the kaiser requires the response has been overwhelming people are demanding for stacey's pro way kaiser report and you know as we continue with the lock downs and the bailouts because of a 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 sandra 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 the bad bets made on wall street chicago. and ever since and we've had more and more and more unfair system it starts off 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 mean. time u.s. housing j.p. morgan chase to raise mortgage borrowing standards its 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 we acquire to make a down payment equal to 20 percent of the home's value but this is an interesting 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 it's a highly subjective term what america relies on is free market capitalism and it

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 justice said this and he's part of the judicial system of

courts and laws if breaking the law is without penalty then it isn't 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 other team produce there well that was because of all the patriotic investment from these banks into the fracking sector they lost money the 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 made a bet again bull 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 2000 and may is that ordinary americans said well you need to reeducate myself i need to get retrain myself and you know find a way in this knowledge economy go 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 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's you know bad bets get bailed out over and over every single time it crashes my belt bad bets never do yes and that's why on this show as a 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 10001 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 coin 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 our 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 and 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 so they raise the bar when you standards to 20 percent down 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 government revolution is coming funny you know 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 bank it 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 neo 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 and sometimes less than. 0 j.p. morgan one point last year was paid to borrow money every time they borrow $500000000000.00 they weren't charged 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 and 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 we hear 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 use is thrown at the garbage compare that 810-2030 trillion that's printed to buyout assets on behalf of the club the 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 well 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 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 propose your scheme stocks 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 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 chair retirement programs leveraged earnings programs opportunity enhancements earnings and fish and c. 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 brand it and they'll say well turnings it has been 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 and has been programmed well they're 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 they even though they're a big insurance company but all the major stocks in america have puts 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.

in the. room please. walk next don't. give us. sort of the. 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 head funds and 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 folded out. their own approaches and their court folios and pasted. 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 but 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. 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 if fracking industry had jumped by boat to go under your head to rescue not the freshers 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. she will bear said. 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 in the financing with all $3000.00 is not breaking the law the head of the house tax writing committee is. a democrat not representative neil and well 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 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 where the news is whatever it takes that european central bank does and i think that the motto here whatever it says so that the one who lives in the stock holders don't lose and it. you saw the largest the stock market jump since the in 90 years last week when the bailout for the wall street. 6 percent brilliant dollar program sam out and the idea is that the economy has to bear all of the low labor small business

and industry none of the loss 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 economy something passed and nobody's making that unpleasant calculation so it's just a 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 that 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 anymore free markets on excess 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 bank. and you have something similar today the question is socialism for a boob will it be socialism for the one percent socialized lockwood's or will it be

socialized socialization or the 99 percent you socialize again and spend money into the economy make them maintain living standards in wages well obviously we're going beyond industrial capitalism and finance capitalism and finance capitalism you have to gain control of the state in order to balance so. you sort of it artificially inflate fucking bond prices so what we have today is asset price inflation and it's the same time you have wage replay ssion and the equation of prices consumer great place and so they're there to look kind of mean and to price and $1.00 for the one percent of their assets in the other the economy and their wages and right. now the u.s. 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 the. other idea you've been talking about m.m. to me seems to be that the 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 them through hyman minsky and all of this 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 one flyman to raise living standards to finance public infrastructure spending so they would never get private. and so basically the economy grow

and this was all attacked by the monetarist and so listen wait a minute if you can create money for the people you can create money for us but 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 just 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 in minnesota for 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 they're 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. certainly going to catalyze that they don't organize it means that they're 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 their life span chart that's really the alternative they simply cannot live imagine what's going to happen in 3 months when all of a sudden they haven't been employed all of the rent 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 pay rent anymore and they're going to be forced to sub subsistence living of clicking on ads on facebook for a protein pal if your vast knowledge of economic history etc is this 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 they were the landlords the descendants so the

military contrary soon made it england and europe who ended up with all of the surplus in the form of land rent and the day the role of the landlords and the one thing sent. it's been replaced by bankers because rent is now big essentially by mortgage interest to the bankers and the idea. debt. should be increased to the point where all we leave is the minimum expense of living now unlike serfdom and you know as i'm the. mayor and they want you papers can live wherever they want but who are they when they're going to have to pay mortgage interest to buy a home for 2 thirds of the population or are they going to have better rents 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 service did not the quarantine you could argue that they actually had us appear your lifestyle anyway dr hudson thanks so much for being on the kaiser report it's always going to be a tremendous day and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert like to thank our guest dr michael hudson 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 so next time by all.

humanity is on the edge of a precipice thanks to a continuing destruction. the natural wild. you just seem laid out a lot of good results. losing much of a lady a few. feet away. from everything you can hold up. for but. i think that all of the war. or the. only dealing in the muslim lands as a people both here. and stuff and. ship them see that.

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 to a good and moral. the world is driven by shaped by those with. thinks. we dare to ask.

there are a lot of lawmakers in the state of missouri that we know huge financial contributions from agricultural industry groups those are the groups that opposed 'd proposition b. and there is no doubt in our minds that those same groups pressured lawmakers to overturn proposition and before the session even started there were bills that were pretty filed to do just that you feel bad because it was repealed but you know all of your work. has made a dramatic difference for this i mean just the fact that almost half these facilities are out of business you could have a vision that things are definitely much improved with many of the worst operations but you still have chronic while leaders who are operating you still have treatment . and you still have the. believe they can do whatever they want there are so many issues out show many porton issues and

everybody is struggling in their own way that we don't necessarily want to pick up the other guy struggle eventually i have to go back into my town and face this neighbor and face the other neighbors and i will meet them at church i'll meet them at the grocery store a meeting at the restaurant at the sale barn and i'm responsible. and i think this is. where the buck ends we individually have to take responsibility as producers and also as consumers but i mean i think for the public very clearly you know you have a choice in the product that you buy at the store. you hear of a problem in your own backyard if you're by.