the main goal of destroying terrorism and then was it achieved? yes. and no. ok to essentially no longer exists good for us. but there are certainly other terrorist groups that are worse than the president biden against the host, the reception from the american public. i mean, i get over his handling of the gun it's done. pull out the 20th anniversary of $911.00 approaches. he explored the legacy of america was tara, in series of special reports. we hear from families this whole lot was killed in a recent us trans tries in comp time the head of the family that has lost 10 of its

members. this is not a mistake of america. this is a crime. and travel as the u. k. threatened to withhold millions of count on mr from because loans and claims says no agreed in trying to stop a lot of my gross crumpling the english channel. the headline for you up next to nothing to national. it's the kinds of reports and for our u. k. years it's been passed the max kaiser. this is the kaiser report. stacey? right, well max, you know what? 2 things i want to point out. our guest in the 2nd half michael hudson, he was right. death can't be repaid, won't be repaid. and secondly,

you are right over the past 2 years of kaiser report where you said that the fed is causing deflation through all of their money printing and their negative interest rates. ever a driving interest rates down the headline reads the rich get richer and rates go lower. maybe it's not about demographics after all. so this is a financial times piece. and it's looking at a recent report that i guess came out of the same week as jackson hole, the virtual jackson hole. and what they find is that the argument use in the mainstream media normally is that this wealth gap is caused by the boomers, right? that they have all the wealth. what in fact the data shows from the feds own data is that it's actually just the very, very wealthiest, even higher than the top one percent are gathering all the gains from the past

203040 years of gross. yeah, yeah, that's right. the top 110th one percent are capturing almost all the gains and that trend x l rating over the past 20 or 30 years. and the nomenclature use that the fed is fighting deflation by money printing. as we've been saying now for a long time is actually the exact opposite. they're causing deflation. so in this case, to understand what deflation means in this context, it would be suicidal collapse. because when you allow for the top 110th of one percent to simply move trillions from the public, the economy, the publicly owned economy, into their private pockets year you are fostering societal collapse. and that is for sure, deflationary, when, when a society collapses, you can definitely call that deflation. well, even before it collapses,

what happens is what they, the data shows is that as manufacturing was sent overseas and wealth creation, normal wealth creation for ordinary people was sent overseas. all you had were racket right and ponzi schemes available here. so whoever had the 10 to an effect, whoever was closest to the fed got the cheapest money, whoever already had the huge assets when the ponzi schemes started, i believe in august 15th 1971. when whoever have that got to gain the most of all the money printing all the credit pushed into the economy, whereby the bottom didn't. and they do ask and they, they look at the point that why didn't all of the savings. so all the vast savings, the savings glut is actually with the top point one percent of the population. they have massive ones. wealth jeff bezos has $200000000000.00. his ex wife has like

6575000000000. she can't give it away fast enough, right? there, for the most part, those people are not investing into productive assets in this economy, because obviously we don't have that like china produce as everything. right. so that means that they, they're the biggest debt holders. they all the muni bonds, treasury bonds, all that sort of stuff. they own all of that. so the government and the bottom. 99 percent. oh that the top point one percent. all their money and they're paying more and more of their income to them. and they're gaining more buying more assets, but also that capital that's going from the bottom to them is obviously a sucking sound causing deflation for the vast majority. not for that top point one percent, which is enjoying a very high inflation rates in their assets, right. the, the way the us carbon responded is through the issuance of treasury bombs. and they

pay the interest on those bonds by collecting taxes. who owns most of those bonds, if not virtually all those bonds, the top 110th of one percent. so the government simply becomes a pass through mechanism for people to pay money from their pockets through something called taxes that are just a fig leaf that hides the transmission mechanism of your money through the government into those who own these bonds and because they own so many of these bonds, the interest rates available are quite low for them to go out and borrow and to speculate. and oh, guess what? whenever they make a mistake speculating, they get bailed out again and again and again. so it's, it's deflationary in the sense that society in america is collapsing. we haven't seen a society collapse on this scale since the soviet union collapsed. and this is exactly what we're seeing in america right now. right. and the inevitable doom loop,

and maybe this is just something that has to happen throughout history. why we have like slaves. why, why a new leader or a new government, or regime hassle wife way all those old tests because it gets to this point of a doom loop and the doom loop. they point out that and the names of these, the researchers are man strout and susie, who they released the paper that argued that it's not demographics, but it's actually the rich getting richer that is causing all of this chaos. they disagree about why there are more ever more saving sloshing around. it is not because the huge baby boom generation is getting older and saving or a trend now will change direction soon anyway, when they all retire. rather, it's because a larger and larger slice of national income is going to the top decimal of owners, because a person can only consume so much the wealthy few tend to save much of this income,

rather than spend it. this pushes rate down directly when the savings are invested, drive and asset prices up and yields down and indirectly by fact, bang aggregate demand. so there's their deflation they're causing. now that consequent deflationary economy for the vast majority leads them all into debt, whether it's credit card debt, mortgage that student, that housing, that all, that stuff is owned by that top one percent. i remember, as you've pointed out as well, they get all of that reward, all of that reward. we get none of the risk of that deflationary economy for the 99 percent, one of those debt collapse. they just take the pile of contracts and go here for head, but on your balance sheet. so that's why it's gotten even worse. that's why it's like, don't parabolic at the moment, right? and as dr. michael, us and points out, and there's many books, you know, the, the us went through a transition from manufacturing base economy to a pure financial ization. right. and i witnessed, at 1st hand,

starting in the 1900 eighty's under the reagan factor, the regulatory boom. and so now we have a raunchy, a economy that's 99 percent of the u. s. economy is the top 110th of one percent charging interest on everything. if you notice, just about everything out there. now the prices are going up because the ron ca, economy, feels that they're in an older gar kicked position. there is no push back by regulators and there's no manufacturing competition. there's nobody competing with anybody in the financial markets. it's all big, been turned into a very small oligarchy, and we have oligarchs. we have the same thing again, the back to the soviet union, america as an oligarchy problem, there's too many oligarchs, not enough actual productive jobs. well, oligarchs tend to arise out of like the commodities business, so you're blessed with this huge abundance of gold or oil,

or any commodity that just there to be taken. there is no wealth creation needed, like you don't need to be super sophisticated vent a great technology or anything. you just take it out of the ground and sell it right. that's what we have in the united states as we just, there's no an amazing technology beyond the printing press which was invented very long ago. it's not something new and it doesn't add any productivity or g d p growth for real, real g d, p growth to the economy. and in terms of like, where this does, the societal sort of breakdown. i mean, you do see it maxima, you're starting to see it where everybody is. on one hand, it's like maybe an atlas shrugged sort of thing is like, well there's, there's no getting ahead. there is no meritocracy and i'm not going to ever be friends with the new york fed. i'm not going to be friends with john williams. he's not going to give me free money. so i might as well just stay at home, eat bond bonds and watch kaiser report like there's a set 1st sense of that and you see it at all the retail jobs and the retail sector

. if you have to go to the supermarket, if you have to use the pharmacy, you'll notice that there are no workers there and it's total chaos and ramshackle supplies, empty shelves. all that stuff like you talk about what happened at the end of the soviet union. and on the other hand is kind of what, you know, you have the national problem of this well gap, but also international. so americans are, and some of the western economies are able to stay home, not locked down and get paid more. but somebody's paying for it somewhere like that the, the gap between us and what they can do in latin america, or parts of asia, or africa, is that's also starting to, you know, apart, right? and you have to remember, of course, that the money printing is causing inflation to rise. a lot faster. purchasing power is falling apart faster than people are getting transfer payments from the government. now if you're hank paulson or john paul san,

or any one of the said fund managers out there, you can insulate yourself and profit by this unfortunate circumstance where the finance hairs are captured, the rest of the economy. but for the vast majority of folks out there, they simply take the brunt of it. they simply have a quality of life adjustment down. and they and they're getting angrier and angrier and, and one would understand why americans are getting angry because they're going from ameristock or sea to neil feudalism. right. or as gerald salenti calls it the slab slave landey a slave landing. well, yeah, it happened. it's too late. and they're only just beginning to notice that, and that's what the f t opinion piece concludes with that they say that a further no, i think if these are me on strike, but soupy are right. the political implications are particularly nasty inequality and their view is self perpetuating. with the feedback loop running through low

rates, access savings of the rich depress rates, low rate push asset prices up, the rich get richer. still, many governments, however, are engaging and monetary policies that in all likelihood make the fly, we'll turn faster, right? so what we're going to have in the us starting right now is class war. and we've lived in europe. we lived in the u. k. u. k is mired in class war, you know, and that's and mistaken ball. and it's, it's pernicious and it's ugly. and, and let's look at what they say on the news. the cable news is they're part of the top one percent. obviously rachel, matto, for example, is making 30000000 a year for one show a week. right. so that puts you in the top one percent. keep on saying is the fed needs to keep printing to help the poor to help support to help the poor. we're just doing it for you, hurt us more than it hurts to. so that's that the propaganda to continue this policy that the data shows as causing a strive. exactly, well, we're going to take

a break and when we come back, dr. michael hudson. don't go what? the me ah me who make no, you know board is the end of my teeth. you emerge. we don't have a therapy. we go to the back seat. the whole world leads to take action and be ready to people. judge governors, crisis, we can do better, we should be better. everyone is contributing each in their own way, but we also know that this crisis will not go on forever. the challenge is to

response has been massive. so many good people are helping us. it makes it feel very proud that we need together in what we've got to do is identify the threats that we have. it's crazy foundation, let it be an arms race is often very dramatic. development. only personally, i'm going to resist. i don't see how that strategy will be successful, very political time. time to sit down and talk the the me welcome back to the kaiser report

i'm time out of turn to dr. michael hudson is the author of super imperialism which is about to be available once again. it's 3rd edition and coming out at the end of the month, dr. michael watson. welcome back to be back. all righty. so the book is called super imperialism, the origin and fundamentals of us world dominance. when did you 1st publish it? or in what's the main faces? i published it in september of 1972. just 13 months that united states went off bowl. and at that time, people were wringing their hands and saying, oh, now that the u. s. law told a lot of stability to control of the country. and i pointed out that one countries in central banks didn't them gold anymore to action, the us balance of payments deficit which isn't higher late military, there was nothing they could do with the same foreign reserves,

but by us treasury security. and my argument was that the replacing bowl with us treasury securities meant that other countries are international reserves by financing the u. s. military balance and payments. because all throughout the $9906.00 days and end of the 7 days, the entire us balance of payments deficit was the result of the war and southeast asia and elsewhere around the world. the private sector was exactly in balance. so when people talked about the dollar glove, this is the dollar coming out from military spending abroad. well, i wrote the book thinking, well this will create a react to be supported by social left. dollar is resist the dollars. well, immediately upon publishing with book within a month term and con, asked me to join and the defense department gave me an

$85000.00, much more than i got the book for me to explain to them how very it was worked. and herman, tom said that i would explain how american and monetary and ariel engine was running rings around british colonial imperialism, and was the biggest, great. and instead of being spurring and a reaction on foreign countries not to dollars, it became a how to do a department ca. i was brought up to the white house, the secretaries rather than everybody. and they said she would have thought of leaving no alternative old forces. other countries in by us dollars was all, it was a dollar inflow. so the more we spend abroad, whether on military spending or the buyer rate, all this money is recycled. and actually it's the balance of the financing,

the domestic budget. what is foreign countries by us treasury so it goes they don't buy corporate spots work or. busy not so this is an explanation of how the us use the international monetary fun to control in the operation other countries and make better countries. it can be one u. s. foreign policy. it shows how the world bank brought out against other countries independent and their own food had to rely on us agriculture. it shows how us control world, great organizations was designed to or, and markets, and especially in the united states, had essentially set out during world war 2 story england ends arrival imperialist power and taken over the british empire by basically using that

leverage over like later years. ridge again we just heard reports recently that the u. s. upon evacuating capital. busy left behind, $85000000000.00 worth of the us taxpayer weapons put this into context for us because it sounds like what you're talking about here. since 1971. what america went off the gold standard. you wrote that your book and super imperialism in 1972 . you're talking about foreign exchange rates and it's relation to the military and ok. so it seems to me that this is a good example of what you're talking about. so being on a dollar standard as we happened now, since $971.00, a money standard, i should say not gold back allows america to do stuff like just shower money all over the world because it just printed right. and that,

that has no accountability. and as just printing money, number one, and number 2, the wars in these foreign territories, you mentioned the south east asia, which of course is vietnam. and what we're seeing in the mid east and america's empire is one where to maintain a trade. we have to maintain a trade a balance, right? a stacy is always saying to keep the dollar as world reserve currency. so you're suggesting, of course, that this is, this is why we have so many wars and so many military bases. and so is it, is it too far to say that the us dollar promote is all based on war since $971.00 for sure. well, the us trade balance is not anywhere near as bad as it's reported. for instance, when we import oil, that looks as if it's a big problem in the balance, but hardly any money we pay for oil is actually paid. the foreign countries only 10

percent of americans pays for oil. met ends up being paid abroad because it's paid all of the oil is imported, american oil companies, and this money that we pay, the oil companies really never leaves us entry profits. it's rent, it's machinery that we use to produce the oil. so the trade balance and the investment balance is really a bunch of different military spending. well, up regarding your question about a m, a stand that was supposed to cost $2.00 trillion dollars. hardly any of this was given to us. it was all spent in the united states. so basically because of all of that is the military industrial complex. and the military industrial complex basically operates on a cost plus basis. in other words, it, it maximizes the cost of the weapons that reduces like the $35.00 and

the markup on how much it's able to spend. so very complex, basically, all the government things, you know, we need to make our profits and in boy labor, by building these weapons, you have a choice, you can either drop them in to the pacific ocean or you can drop them into in the state. so we drop the weapons into up dana, stan, and as far as the military is concerned, ok, we've already spend the money on the weapons. we've given the profit, so write down and boeing and the other companies, us companies. so it doesn't matter what happens. so they've left the minute dana span, who knows what kind of stands going to use them, or certainly is not going to use the airplanes or helicopters states. the us doesn't care. all it carried is aid they can and contributors for the, for the, for these weapons. and it's sort of a circular,

circular flow between the u. s. government and the military producers and all of this and the, the contractors and all the generals who got rich shops. so you make the point that 90 percent of that $2.00 trillion dollars for at the half down stand war state essentially in the u. s. and so the money is printed and it's basically gifted to the military, industrial complex, the defense contractors, etc. and but what's interesting now is dr. michael watson is that we see the exact same thing happening with the banks and their relationship to the government in terms of the money they're supposed to be distributing for programs like food stamps and other transfer payments. 90 percent of its days at the banks that doesn't actually rate reach the people that it says they're supposed to rate. so here you have 2 sectors of the economy, military and banks, which are probably by extension you'd have to say that would be more than 50

percent of g. d. p is probably closer to 75 percent of the entire g. d. p of the united states is based on 2 major industries that are engaged in this fraud of inducing the government to print money and then keeping it as and they use, i guess the propaganda is, they're going to afraid the people of i get data stand by keeping $0.90 of every dollar they print and they're going to, they're going to help the poor people in america by keeping $0.90 of every dollar they print or so. is that about right? yes, the price of the prime directive, the federal reserve and the treasury is that the banks and the one percent and not lose the money, any money. and so we're a great now because it's priced, so they said we're going to give an enormous amount of money to renters and mortgage borrowers so that they don't get, well, they give the money to the renters, pay the landlords,

so the landlords can pay the banks on the mortgages that they've taken out to buy the property. and essentially, it's a circular flow, by way of the renters, and by way of the families that are borrowed they go to mortgage and buy a home, but can pay because of all this money that's been given to help us homeowners and rogers is paid all ends up getting paid right to the bank. so the renters and the homeowners are simply intermediaries for the reserve, the transfer money to the bank, to make sure that the banks don't lose any money on the mortgage loans which take up about 80 percent of bank lending. and the united are talk about your book super imperialism. coming on to 3rd edition sin, it's a classic, but it's a great book. so you right, quote, in 1949. the united states held 3 quarters of the world's gold. by 960 and had

become a debtor nation. and yet the united states is built history is most powerful, an apple empire. ok. how did they do that? that's exactly the point. how is the united states to rule is a creditor against the 3rd world countries that american bond voltage control europe and other countries by being better, it controls them by saying, well, all of your foreign reserves are now in the united states. for instance, layla held us both in the united states and reserves united states simply brad and doing the same almost always research. united states said, well we don't wake up. so we're going to grab all of your reserves now you can have it. and then i can tell other countries in europe, japan, china, other countries, any holdings, you go to the u. s. banking system we,

we can grab any plan and we can grab it through your swiss settlement system. and that's finally leading china, russia, iran, and other countries dollars. they say now that we have to hold our money and dollars to guns that they were still, but now they're not as good as gold. and so china, russia and other countries instead are buying go and keeping it at home. not like way to the bank that grant it to the americans, they're keeping their way. and so you're saying that the world fracture between a dollar area and the area, the dollar area will be shrinking united states europe, so that you're not run a budget deficit engine style. so without running a bunch of deficit, there aren't euro securities for people to buy out. there are going to pick up on

a 2nd segment, dr. michael out of thanks for being on as a report. and that's going to do for this edition of cause a report with me. my guys are and stacy herbert want to think, i guess dr. michael hudson. and so much time via the me the me ah ah ah, i will. i

will join me every thursday on the alex simon show and i'll be speaking to guess in the world. the politic sport business. i'm show business. i'll see you then me this is boom. but the one business show you can't the board a miss branch a board and i'm rachel watkins in washington coming up. the fcc is continuing as pressure campaign against the crypto currency sector by threatening to point. we'll discuss the latest claims in the ongoing cracked out plot. australia as high court says media companies are responsible for the comments made by the public on their post. we'll take a look at what the major ruling could mean for the future of social media. and in the wake of a coup in guinea.