oh max kaiser this is the kaiser report 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 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 acquired 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 be 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 and you guys 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 applies and the justice said this and he's part of the judicial system

of courts and laws if breaking the laws 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 2003 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 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 jamie diamond's 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 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 $10001.00 for you and those 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 a 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 school meant sachs says j.p. morgan made it harder to get a mortgage today raising borrowing standards to 20 percent down with a 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 to 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 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 borrowed $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 the 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 sum to a 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 the mob 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 krauts so member 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 in 200-2001 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 remember that the federal reserve is supposed to regulate these banks and they're supposed to somebody supposed to oversee these corporate. and go ahead. i would like put on my next billboard site down but that will be interesting to look at you can't say for apologies game 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 but boeing is junk read it 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 not share buybacks now you say stock buybacks won't stop they'll be rebranded my guesses on rebranding is share retirement programs leveraged earnings programs opportunity enhancements earnings and fish and see programs net result exactly the same a stock buybacks equally fraudulent. stock buybacks won't stop there is some talk on mainstream financial news like oh we can't possibly just keep buying back our stock and just use the money to pay ourselves dividends and reward ourselves huge increases in salaries oh that's very unseemly so they will rebranded and they'll say well it's earnings have asked for 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 been in the hands turnings this quarter but they won't mention the stock buyback by name but that will. the the earnings announcement program 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 call that insurance they 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. so anyway we're going to take a break and when we come back much more coming your way. she manatee is on the edge of a precipice thanks to a continuing destruction of the natural world.

you do seem laid out a lot of clues lots of. losing much of a later period of. the members. of the new. that or the war. or the. dealing. with the same people. and stuff and. hit 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 building just don't 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 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 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 s p v s 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 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. 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 and sort of taken over the presidency and the financing of 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 there are simply you know. the congress is then basically bought out and they are in the position the president thinks you 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 and south 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 so that the one who lives in the stock holders don't lose and it. you saw the largest stock market jump since the in 90 years last week when the bailout for the wall street. 6 percent brillion 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 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 these are going to go under and at the same time below the

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 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 anymore free markets down 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 what system are we have exactly used to be called state socialism in the late 19th century when you had germany have a kind of 3 way integration between the government the military and heavy industry and the bank. and you have something similar today the question is socialism for who will it be socialism for the one percent. the losses or will it be social socialization or to be made in one percent you socialize again and spend money into the economy to maintain living standards and wages well obviously we're going beyond industrial capitalism and to finance capitalism and finance capitalism has to gain control of the state in order to ban went so far out to sort of it artificially inflate the stock and bond prices so what we have the day is asset

price inflation and at the same time you have wage. and equation of prices consumer price inflation and so they're there to look kind of means and to price index is $1.00 for the one percent there has that's and the other the economy and their wages and the prices they are 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 am an empty moderate monetary theory for the bankers people are asking why they even need to pay taxes if the government and fed compress so much money and are we have so you know here's. other ideas you've been talking about m m t a 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 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 net the 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 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 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 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 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 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 written notes and then the band is going to fold do and the restaurants and small businesses they work work 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 homelessness will 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 that 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 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 not very 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. you know it's been replaced by bankers because rent is now big essentially by mortgage interest to the bank and the idea.

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 be. right. there on t.v. 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 nafta 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 mess 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 guests dr michael hudson and look them up if you don't read as books you probably don't know anything join catch us on twitter it's kaiser report the next time. this.

is the release. they can receive usually to the police when. they. walk next don't. you see. there are a lot of lawmakers in the state of missouri that we know received huge financial contributions from agricultural industry groups those are the groups that opposed proposition b. and there is no doubt in our minds that those same groups pressured lawmakers to overturn proposition b. 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 paid

off as made a dramatic difference for this i mean just the fact that over almost half these facilities are out of business who could have envisioned that things are definitely much improved with many of the worst operations eliminated but you still have chronic while leaders who are operating you still have any humane treatment of the animals and you still have this defiant attitude that some folks believe they can do whatever they want there are so many issues on the 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 meet them at the grocery store. this is.

i think for the public. you have a choice in the. going to try to fix it. if you can't.