you know after 1602 when we had public stock markets and not only was it did reduce risk for individual very wealthy people that the ship would go down and everything would be lost. but it did wide in the scope of the middle class and the wealth i'm in class so that could be gone soon right the 60 not to date is an important day of course it also kind of is the transition from feudalism in medieval into the modern capitalism and when you take all these things private it all goes back to the hands of a few plutocrats then you're going back to medieval times a week call here neo feudalism ray and what's left for the robin hood app traders is a smaller and smaller chunk of junky companies and really that you get junk and scams it's like they are in the crypto markets when all these i.c.a.o. isn't all queens are listed for those who don't own becoming who don't have you

know ability or have you know they feel like cheated that they didn't get any bitcoin and then they jump into all points well here is like the similar happening in public markets nicola the company kind of based on tesla you know with these electric trucks is estimated to earn $30000.00 in revenue for the 3rd quarter down from 36000 dollars and the 2nd quarter it has a market cap of $12600000000.00 this is 2020 right well what people are trading now are me miss but i've said that before that subtle is mostly valued as a like to fail the fraud was a huge mayme that changed the outcome of the 2016 presidential election tesla is mostly valued as a mean it's a concept elon musk is a cartoon character that is a brilliant marketer and a brilliant engineer but his company is not what $400000000000.00 but as a mean. it is worth $400000000000.00 and what nicola the car company realizes that

they could out me me tesla as i'm am and they introduced their mean like company on to the exchange general motors was poised to buy this me because everyone wants to be in the main business because just like 20 years ago 30 years ago during the age of financialization every company wanted to be in the financial ization business so drug companies car companies manufacturing companies started to trade derivatives and make more money on their cash desk than they were making with the actual product that was listed as their primary source of revenue that all changed now you're going from financialization to mean if occasion and that is part of the neo feudal is ation because all the equity is essentially been stolen and i knew you know when i established the hollywood stock exchange back in 1906 that you could make a huge market trading nothing but means and also that disproves a miser's regression 0 that was disproved by my invention in 1906 but

nevertheless here we are in 2020 and it's means all the way down well you know we started with the headline that companies are taking themselves private eye they're skipping the private equity right there hollowing out their company and bankrupting their pension before the private equity can do so what is private equity do because private equity of course likes to hollow out and swap debt for equity it's like extract your equity and leave you with debt so in this situation of the wall they've created they've created this trickle down of scammer e re and predatory behavior well america's largest landlord to make $550000000.00 bet on trailer parks a decade ago blackstone group became america's largest landlord purchasing tens of thousands of single family homes during the foreclosure crisis now the private equity firm has spotted the next big opportunity as the virus induced recession crushes the working poor that is. adding on mobile home parks so i just want to

point out here a difference between this old crumbling economy this fiat's dark ages that we're possibly exiting and entering a new orange pill sort of future reality of a more fair and just economic system between is here is this group blackstone betting that the situation's going to get washed for you $550000000.00 there are look they're betting because they know because you know these guys running blackstone are close to all the policy makers and they know what policies are in store for you and they're betting that it's going to get bad for the ordinary person whereas if you look at another publicly listed company micro strategy and we're going to be interviewing the c.e.o. next week he's poured about the same close to the same relative you know $450000000.00 into bitcoin so he's making a positive bet on your future whereas this guy blackstone stephens stefan

schwartzman they're making a bet that it's going to get worse for you my interpretation of this headline right michael saylor this company micro strategy is their purchase of approximately 400 $50000000.00 of the big coin the 3rd approximately of their cash or i should say the market capitalization of the company is that represented a 3rd by bitcoin this is an incredibly important and seminal moment in the history of finance in america and bitcoin not tell you why up until now the entire strategy has been don't fight the fed and used the cheap money to buy back your own stock all the stock gains particularly in apple computer have been generated by buying back their own stock and it's made of possible through those 0 percent interest rates from the fed what michael saylor is team at micro strategy are saying is that wait a minute we're not going to use that 0 percent money to buy back our own stock

and give ourselves huge bonuses we're going to protect ourselves against all that money printing. and we're going to buy bitcoin so this is a sea change this is an inflection point this is like steve jobs introducing the smartphone this is incredibly important moment in the history of finance nobody on wall street understands this this company only has 2 analysts on wall street and they have very scant coverage because it's kind of a small cap company it's worth less than $2000000000.00 a that's growing now but once this sinks in that companies in corporate america is no longer taking advantage of the fed but needs to protect themselves from the fed being the key apple computer has got hundreds of billions of dollars in cash then they do the numbers they crunch the numbers and they say you know what micro strategies and michael taylor is correct we need exposure typically ok now because ends at 506-070-1000 extension 00 dollars a going going

a lot higher yes michael saylor we are going to interview him next week here on kaiser report michael saylor of micro strategy and i want to say you know going on with this theme that you're blackstone very well connected kings of fi outs kings of the economic system and the constant bailout from the fed they're betting that neo feudalism as we call it will continue and it will get worse this is their bet they've bet on that that you're going to be living in a double wide sand right the trailer park business i predict that they will give you the trailer park for free as long as you stay in there and click on ads for social media it's like click on ads with you know facebook stay on facebook and we'll give you a free trailer park that's the model going forward it's called the casino gold act and so here is another headline looking at where the ordinary person as blackstone's betting against you that they used to turn to the government for some sort of help and. but what you're going to get is no government intervention and

you're going to get instead continuing central bank intervent. and that central bank interfaith vention well cause inflation so here is what we see out of singapore ok why the hopes for a solution to out of control government debts won't work this time rapid growth is no longer possible and inflation is not going to be tolerated in societies with slow wage growth head of central bank of singapore it has been said out loud it has been said out loud now they're speaking honestly at least some people are some of the truth is trickling through and we you know in response to this us national debt climbing climbing climbing he also says rising inflation and high economic growth works during the decades after the 2nd world war in bringing down debt levels and highly indebted countries such as the us but it won't work this time said carmen

shanmuga garbutt men a senior minister in the singapore cabinet chairman of the monetary authority of singapore singapore central bank and deputy chairman of the government of singapore investment corporation singapore sovereign wealth fund he was speaking at the opening day of the virtual singapore summit so there was just a virtual conference and the head of the central bank of singapore said that the debts are out of control governments can't spend any more because they can't cause the inflation because people are on conley low wage jobs so you know he looks back at the war world war 2 and he sees that this seems to be the plan for all these governments it's like hey let's cause huge inflation that'll just inflate away or debts like we all these economies came out of world war 2 with huge debts and they inflated away but wages were increasing as fast as inflation back at that time they don't increase now because feudalism they don't have any choice like is amazon going to increase wages now right they have monopsony power they control them the

labor market as does wal-mart so us. that spiked by $4.00 trillion dollars in one year and now totals $26.00 trillion so. these fine days back here when it was under oh is only like 15 trillion now it's 27 chilly and that was like. when it was still early in its 1st 2 years it was way back there and now it's way up there but another huge inflection point as the central bank of singapore is pointing out and then what he's saying is that the global g.d.p. is roughly $100.00 trillion dollars and the amount of assets bought by these top central banks around the world is approaching $100.00 trillion dollars and going over a 100 trillion dollars what so imagine this you're pouring water into a bucket and the water is filling the bucket and then at some point it reaches the top of lip of the bucket in a starts to cope or out of the pocket and that's what we're at now another

inflection point you there is no capacity for earth economy to carry anymore debt we're at the saturation point now every dollar that these central banks print will go directly into consumer price index inflation is going to see it at the cash register immediately and that's going to cause incredible social unrest in singapore as a comma country with very little social unrest and it's a very different type of political system in companies countries like the us however oh boy well in the last minute we have here and i do want to say again we're coming up to an election we have this system where some of the elites like by sound are betting on more neo feudalism that this is the future for you that there will be no more spending there will be no more that it's not possible to rack up any more debt and that's going to have consequences for these generations e. and millennial they're already out in the streets protesting and. what they have designed for you is the gulag of these mobile homes this is they are free sure

they're building for you they think they're going to be happy with that i reckon it's not going to be like that and some people are betting on a positive outcome for you like this company micro strategy they're betting that it's going to be better for you because there is this alternative financial monetary an economic system and global unit of accounts and settlements layer that trade might be become fairer that manufacturing might return all the sort of things that are going to happen with a lower time preference that trumps this time preference under which we've lived in which neo feudalism appears to be the outcome absolutely well said and we're at that inflection point is really important awake in the history of bitcoin micro strategies the stock market the fed and because you know go like ok we're going to take a break they only come back once mark on your way. the

world is driven by shaped by. saying. we dare to ask. well look forward to talking to you all. that technology should work for people. i robot must obey the orders given by human beings except where such orders would conflict with the 1st law show your identification should be very careful but of social intelligence to the point all of us. he is to trace a transfer of the shia. plates to various jobs and with

artificial intelligence will summon the demon. robot must protect its own existences excuse the. cash cow and is drawing alfonzo along his darned his chosen page his dard served. his 1st words were at a lower seer a challenging post you've got to use to me as. i have no doubt that what happened was criminal. offense concentrate market is a $1000000000.00 industry these companies have

a huge financial motivation to solve these problems there are numerous stocks showing that doctors who are keen to test facts are a concentrate straight insights of its own that patients want gives them doctors the wrong to play golf term stuff why they would keep me from secure those years day. and people still die and i'm always question or so i write being allowed to live where so many have. one else so it's seemed wrong. when old rules just don't hold. any new world but yet to stamp out these they become advocates and engagement equals betrayal. when so many find themselves worlds apart when she's to look

for common ground. room welcome back to the kaiser report i'm max keiser time and return to our conversation with dr michael hyde sand author and economist dr michael hudson awhile come back good to be back all right etaoin we're talking about our friend our mutual friend david graber who sadly left us recently and you know one of the other things he was writing about is the kind of the predominance of what he called be ass jobs you know jobs are just busy work that are not really necessary now under this lockdown globally work from home as be

taken often but apparently it seems a very few jobs are actually essential a kind of prove his thesis and oh what a lot of ways what do you think. oh certainly that's the case in academic every university that i hear oh say they noticed that the employment by universities the professors fully employed had been going down and down but the bureaucracy the deans and the managers in the some managers and the assistants some managers have all been growing more and more income has been paid to the university presidents that deans their administrative staff. and they're paid for squeezing more incoming work out of the professors so they figured well that we can make more income for ourselves. hiring only part timers who get maybe $3000.00 to corson's instead of $70000.00 or under those through professors get so you have

really the university in academia being turned into a kind of managerial set. ups but i think what david was really talking about was not simply a socially unnecessary. but jobs that are are are unnecessary but are just made really really unpleasant by having efficiency experts mainly financial planners come in and say how much can we squeeze out of the workers say in amazon warehouses how can we make them work faster and faster they can't just walk from one. doc to another to pick up something to put back each they have to run to put in a package how do we speed up the production line when it all ends up working like charlie chaplin's modern times where he's trying to keep up with the machine going faster and faster so you have this rise in productivity that should enable people

to be more and more relaxed and have more and more enjoyment out of the charms and then more and more creativity when they can think what they're doing or even at least relax if it's a really boring job like putting books in a package but instead they're just squeezing everything out and there's the demise of labor unions in the united states and the idea of squeezing out as much money as you can by leaving the plant show. the private capital industry to take over companies and then just essentially strip them. squeeze out labor i think that's part of the d generation of labor in modern times you know with all this money printing going on during the crisis the cava crisis a lot of people are asking why do we pay taxes you know why don't you know that's

obvious they can print trillions on a whim why why do we pay taxes what why why do we pay taxes dr michael hudson. we really don't need to pay taxes we pay taxes because the financial sector and the banks do not want the government to simply create the money on its own print press we pay taxes as a way of keeping down labor of texas labor and industry we don't tax real estate we hardly tax finance at all and we don't tax monopolies were large enough to have offshore banking centers to where they don't pay taxes we pay taxes so that one percent can push the whole tax burden on to the 99 percent and prevent it from rising in the economy which prevented from having economic power that it might turn into the political power to make productivity hopeless own living standards in

whole society instead of hoping the one percent to make society worse and worse right and we should mention that this term 99 percent and one percent came out of the occupy wall street and david graber coined yeah. basically thought up by. the phrase and it took off i mean i think it he mentioned it you know you never know when a simple phrase is going to just sort of take off better than it really is is what it was and but of course then we found out it was a 0 point one percent more than the one percent but he rounded off to one percent right now american incomes have sort thanks to the enhanced unemployment benefits and stimulus checks 20 percent of the population saw their income double many have been paying down their debts so is this a kind of a debt jubilee what are your thinking on this well let's put it this way. every economy reaches

a point where economic activity is interrupted like it's being interrupted today now we know that low surplus economies like schumer and babylonians couldn't afford to have. everybody fall into bondage when their economic activity was interrupted so normally you have the laws of hamurabi that introduce the concept of an act of god when something occurs from outside the normal economy again and that prevents people from paying their debts or paying their rents then. then rather than have them fall into bondage rather than have them lose their land rather than have lose their their homes and a sense really lose their livelihoods you say ok nothing nobody has to pay rents and best until economic activity resumes to be normal and also the hammer obvious said well if a business has a business interruption or you're

a trader and you're a ship or and you're pirates robbing you don't have to pay the creditor it's the creditor as i have to after sharing the loss of your caravan and your rug by robbers and you don't have to pay. the creditors have to share in the loss of the debtors otherwise you're going to have decided polarized well that's not that's not today's law we're following roman law and that is if there is an act of god and you can't pay the rent then you lose your home and your better bit and you're homeless you lose your savings your lose whatever property you have and that is essentially it happened again and again and antiquity and that's what rome had 5 centuries of revolution about saying you know cancel it that's give us back the land. and it didn't work. the one percent was there and it looks like the one

percent is. going to win today and right now all of the rents that haven't been paid for for 5 months all of the deaths that haven't been paid are accumulating and they're all going to fall due in november or december right after the election and all of a sudden there's going to be a wave of the fall of bankruptcies and a social dislocation that will be larger than that i think thirty's because in the 1930 s. at least most people couldn't run into debt except for housing debt because nobody would lend to poor people but today everybody is in debt and everybody's in danger of losing whatever they've gained in the last few decades michael you wrote the book super imperialism what do you think about banning qual way in the 5 g. technology what's going on there it's very hard to see what will happen because china. has made such

a large proportion of essential information technology goods that if they they stop the trade there than china will say ok. we won't use yours and you won't use ours american americans will lose the china market and if they lose the china market that's going to exacerbate that a depression here the real fight is over what is your going to do right now in europe european governments are sort of a subordinate to nato and they're basically nato. proxies and the question is whether china is going to have its so carrier technology used by europe and europe eurasia will be using a. fish and hyper low priced technology or whether the american monopoly is going to tell you. europe buy our high priced gas and not

a low priced or russian gas buy or a high priced technology but most of all we we want europe to use information technology that has our spy systems part of it and the chinese system isn't a system that the national security agency gets to read all of your e-mails and so america's furious it says we cannot have the insecurity of not being able to read everybody's email and if you use chinese technology then we're not able to spot on americans that makes us feel very insecure and we can't even spy any europeans that use chinese technology and for all we know the europeans might do something that we don't like. it would be the end of the end forests my head is spinning but we must go bang on cause report dr michael hudson always good to be here all right that's going to do it for this edition of kaiser a part with me max kaiser stacy ever like to thank our guests dr michael hudson

until next on. the war we've got to do is identify the threats that we have it's crazy confrontation let it be an arms race. very dramatic development only really i'm going to resist i don't see how that strategy will be successful very critical of time to sit down and talk. cast calendar is drawing alfonzo a long day and there's changing to a change dart served. his 1st words were that allow a c.

or a challenging post you got 2 years to live. i have no doubt that what happened was criminal. thoughts concentrate makis $1000000000.00 industry these companies how does a huge financial motivation to sow these products there are numerous stocks showing that doctors were keen to chest x. ray concentrate straight in fits of its own that patient won't give them doctors the wrong stoplight. turn the stomach why they would give me sick each of those years day. and people still die and i'm always question or so i write being hard to live where so many have. time after time called her ration to repeat the same mantra sustainability it's

very important to excel or a transition to sustainable transport sustainability stay number man or a more equitable and sustainable well. they claim their production is complete the hamas. has no models and it does not the companies want us to feel good about buying their products while the damage is being done far away and this is something i'll just keep going to anyone and i mean look. this is the mood in the us and we didn't even and einstein seemed to be best understood so when in. seemed wrong. just don't hold. any you get to shape out these days to come as a kid and in detroit equals betrayal. when so many find

themselves worlds apart we choose to look for common ground. in the headlines this tuesday europe's seen as a major surge encoded in factions forcing the return of restrictions as poorest sections of the population. fortunately. also this hour russia gets ready to start clinical testing of another coronavirus vaccine across the country. and britain is opening its 1st camp after a surge in the but local good mixed reactions to the. we don't want to keep up some would you know safe to leave a little bit deeper the plight of babies will be a joke you know i didn't have much of sleep to get to jews.