hi there i'm max kaiser this is the kaiser report you know the stock market as a subset of the economy has undergone a transformation and become a plaything for speculators fueled by incredibly egregious money printing by a rogue central bank and this is causing all manner of dislocations mal investments in societal changes for more let's turn to stacy herbert hey well you know what something that you predicted would happen is happening and it's coming true billionaires lining up to take their companies private so what will robin her dish trade when everything has been l b. right so as we've been saying on the show for a number of years all this money printing in the strategy of companies taking

themselves private or buying back their own shares with the 0 percent interest rate would end up with a economy and a stock market that doesn't exist anymore because it's all been taken private remember during the 1980 s. michael milken introduced the revelation in the revolution in leveraged buyouts the l.b.o. they borrowed money they acquired companies they sold off asses they kept a difference and they made many many billionaires the 1st huge wave of billionaires in america thanks to jackson burnham mike milken in the leveraged buyout down 2020 we've got the end game every single company is a private equity firm berkshire hathaway's a private equity firm all hedge funds are private equity firms all private equity firms or private equity firms are all borrowing money and 0 percent interest rate they're all taking all the pieces off the board every house and hotel the monopoly board called america is being bought in taken private and not available to trade by the robin hood traders just look at a chart of the number of shares outstanding for apple computer ok that shows shares outstanding going straight down in told there won't be any shares outstanding.

it'll be a private company at 0 percent interest rates so we'll be back to priest 1602 when all of the wealth was in the hands of a few people and 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 of one 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 and 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 in scams it's like in the crypto markets when all these i see oh isn't all queens are listed for those who don't own because you 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 that 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 means as i've said before that satellite is mostly valued as they like to fail the fraud was a huge mayme that changed the outcome of the 2016 presidential election tesla is

mostly valued. azeem mean it's a concept iran mosque is a cartoon character that is a brilliant markets are and a brilliant engineer but his company is not worth $400000000000.00 but as a mean it is worth 400 $1000000000.00 and what nicola the car company realizes that they could out me me tesla as a me 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 has 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 the mises 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 betting 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 pilled sort of future reality of a more fair and just economic system of decline 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 big coin 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 his company micro strategies their purchase of approximately $450000000.00 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 things 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 news team at micro strategies 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 of 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 calling 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 fear out 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 you're going to be living in a double wide soon 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 answers you know facebook stay on facebook it will give you a free trailer park that's the model going forward it's called the casino gold act

and so here's 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 it but what you're going to get is no government intervention and you're going to get instead continuing central bank interview. and that central bank interfaith bench and 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 there 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 tharman shanmugaratnam garbutt man 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 good commie 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 is 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. national debt spiked by $4.00 trillion dollars in one year and now totals $26.00 charlie and 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 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 the 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 micro strategies the stock market the fed and the casino go like

ok we're going to take a break and when we come back much mark on your way. elderly forward to talking. about technology should work for people. must obey the orders given by human beings except we're such orders that conflict with the 1st law your identification we should be very careful about artificial intelligence and the point all the great. areas with artificial intelligence will summon the demon. the robot must protect its own existence with.

all forms or among. those cherished. page changed already served. his 1st words were at a lower seer a challenging post you've got 2 years to live. i have no doubt that what happened was scriven. that's causing trademark it is a $1000000000.00 industry these companies have a huge financial motivation to sow these products there are numerous stocks showing that doctors were keen to test facts re concentrate straight infectivity on the patients won't give them doctors the wrong stoplight. turn the stomach why they would give me consecutive dose years day after day and people still die i don't

know if question or so i tried being allowed to live when so many have. one else shows seemed wrong. when all were all just all. to me the world yet to shape out does they become agitated and engagement equals betrayal. when so many find themselves worlds apart when you choose to look for common ground . welcome back to the kaiser report i'm max keiser time better return to our conversation with dr michael hyde sand author and economist dr my thoughts in

a while 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 asked jobs you know jobs or just busy work that are not really necessary now under this lockdown globally work from home is be taken often but apparently it seems a very few jobs are actually essential a kind of prove to status 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 notice that the employment by universities the professors fully employed have been going down and down but the bureaucracy the deans and the managers and the some managers and the assistants some managers have

all been growing more and more income has been paid to the university presidents the 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. of. jobs 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. dock to another to pick up something to put them back each they have to run to put in a package how do we speed up the production line well it all ends up looking 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 they're the demise of labor unions in the united states and the idea of squeezing out as much money as you can by leaving the financial. 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 this 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 in the banks do not want the government to simply. we 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 hokus own living standards in whole society instead of hoping the one percent to make society worse and worse right and we should imagine 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 you know you never know when a simple phrase is going to just sort of take off but that really 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 the 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 life is 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 especially 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 oh 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 has have to after sharing the loss of your caravan and you're robbed 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 society 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 its debts give us back the land. and it didn't work or the other 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 but 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 while weighing 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 the the 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 superior 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 instead of low priced or russian gas by our high priced technology but most of all we we want europe to use information technology but it 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 emails and so america's furious it says we cannot have the insecurity of not being able to read everybody's email and if you used chinese technology then we're not able to spot on

americans that makes us feel very insecure and we can't even spy and europeans that used 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 to break i cause report dr michael hudson always good to be here all right that's going to do it for this edition of kaiser in part with me max kaiser stacy ever like to thank our guests dr michael hudson and so nice. so what we've got to do is identify the threats that we have it's crazy on sunday should've let it be an arms race.

start this hour a minute early as the russian president vladimir putin is now giving a video address to the u.n. general assembly we've been hearing from a number of world leaders are already let's listen in to what he's going to say. at the video address that's being given to the u.n. general assembly right now he's being introduced by a representative that's at the u.n. general assembly actually in new york of course not many people have been able to go there personally because of the restrictions due to cope at night but he's about to start and that means that we can go ahead and tune in and listen to the speech your colleagues. ladies and gentleman. this year so that the international community celebrates too without exaggeration historic anniversaries the 75th anniversary of the end of the 2nd world war so and the establishment of the united

nations. the importance of these 2 forever linked events so cannot be overemphasized in 1945 not system was defeated the government the ideology of aggression and hatred was crushed and the experience and spirit of the lions as well as the awareness of the huge price that had been paid for peace and a common victory will help to construct the post-war world order it was built on the ultimate foundation of the un charter that remains the main source of international law to this day. and i am convinced that this anniversary makes it incumbent upon all of us to recall the timeless principles of interstate communication enshrined in the u.n. charter and formulated to drive the founding fathers of our universal organization .