the max kaiser. this is the kaiser report. stacey? right, well max, you know what? 2 things i want to point out are guessing the 2nd half michael hudson, she was right. that's i 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 of the mainstream media normally is that this wealth gap is caused by the boomers. right?

that they have all the wealth, but 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 growth. 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 print thing. 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 societal collapse. because when you allow for the top 110th of one percent, to simply move trillions from the public economy

that the publicly owned economy into their private pockets, you are fostering societal collapse. and that is for sure, deflationary when it, 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 a can tell an effect, whoever was closest to the fed got the cheapest money, whoever already had the huge assets when the ponzi scheme started, i believe in august 15th $971.00. when whoever had that got to gain the most of all the money printing all the credit pushed into the economy, where by the bottom didn't. and they do ask and they,

they look at the point that widen all of the savings. so all the vast savings, the savings go watch is actually with the top point one percent of the population. they have massive amounts. 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 are 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 this 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 are right. the, the way the us government funded is through the issuance of treasury bonds 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 pastor 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 a 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 me, an strout and sushi who they released the, 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, flashing around it is not because the huge baby boom generation is getting older

and saving more, a trend that 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, driving asset prices up and yields down and indirectly by sac bang aggregate demand . so there's that 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. 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 debts collapse,

they just take the pile of contracts and go here for head, but it on your balance sheet. so that's why it's gotten even worse. that's why it's like going parabolic at the moment, right? and as dr. michael, us and points out in his many books, you know, the us went through a transition from a manufacturing base economy to a pure financial ization. right. and i witnessed it 1st hand starting in the 1980s 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 old gothic position. there's no pushback 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 all the guards, we have the same thing. again,

we go back to the soviet union, america as an oligarchy problem, there's too many oleg marks, 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's 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 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 max and i are 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. i'm not going to ever be friends with a 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. there's a set of 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 wealth 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, that 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, break 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 sen, or any one of these hedge 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 meritocracy. to neil feudalism. right. or as gerald salenti calls it, the slab slave landey a slave landey. oh, well yeah,

it happened. it's too late. so 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 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 depressed rates, low rates, 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 live in the u. k. u k, is mired in class war, you know, and that's and mistaken goal. and it's, it's pernicious and it's ugly. and, and look, 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, making 30000000 a year for one show

a week. right. so that puts you in the top one percent that they keep on saying is the fed needs to keep printing to help the poor to help the poor to help the poor we doing it for you, hurts us more than it hurts to. so that's that propaganda to continue this policy that the data shows is causing the strive. exactly, well, we're going to take a break and when we come back, dr. michael hudson, don't go with the me. ah ah, ah ah,

ah, i will. i 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 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 arts and 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 at last, the civility to control of the country. and i pointed out that one countries and central banks didn't gold anymore to action. the us balance of payments deficit which isn't higher late military, there was nothing they could do was saved by foreign reserves, but by us treasury security. and my argument was that the by the replacing bowl with us treasury securities meant that other countries are international reserves by financing the us military balance and payments. because all throughout the 19

fifties and 960 days. and after 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 created react, be supported by socialist left out, arise and resist the dollars. but 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 worked. and herman, tom said that i would explain how american and monetary and serial 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 so dollars. it became a how to do a department ca. i was brought up to the white house, the treasury secretaries rather than everybody. and they said she would have thought of leaving noah. creative 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 renders rate, all this money, recycled, and actually it's the balance was 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 fund to control in the operation other countries and make better countries. it can be one u. s. foreign policy. and it's, it shows how the world back out against other countries independent and their own food had to rely on us agriculture showing how us control world great organization was designed to break or, and markets. and especially united states had, eventually 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 the yearbook 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 he's 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 has no accountability. and it's 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 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 companies, and this money that we pay,

the oil companies really never leaves this country. 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 problem. almost the entire problem with the american balance of payments, like the budget deficit is military spending. well, regarding your question about a piano stand that was supposed to cost $2.00 trillion dollars, hardly any of this was given to us that 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 cost plus faces. and other words, it, it maximizes the cost of the weapons to reduce like the f $35.00. and the markup on how much it's able to spend. so the military industrial complex basically told the government, you know, we need to make our profits and boy labor,

by building these weapons you choice. you can either drop them in to the pacific ocean or you can drop them into work. so it drop the weapons into a piano, stan, and as far as the military is concerned. okay, we've already spend the money on the weapons, given the profits right down and boeing and the other companies, us companies. so it doesn't matter what happens. so they've left a minute and a standard who knows what kind of stands going to use them, or certainly is not going to use the airplane. so states the us doesn't care. all the carriers paid the campaign contributors the military for the, for the, for these weapons. and it's sort of a circular, circular flow between the us government and the military producers and all of this

and the contractors and all the generals who got rich shops. so you make the point that 90 percent of the $2200000.00 for at the afghan stan 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 is what's interesting now is dr. michael, that 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 it stays 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 us 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 private, the prime directive, the federal reserve, and the procedure is that the banks and the one percent and not lose the money, any money. and so we're a great now because christ. so they said we're going to get 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 wireless. so they go to mortgage and buy a home, but can't pay because of it all this money that's been given to help our 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 banks, 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 states. talk about your booked super imperialism. that's coming out in the 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 gold by 960 and had become a debtor nation. and yet the united states is built history is most powerful and apple, an empire. okay, how do they do that? that's exactly the point. how is the united states and 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, held us gold in the united states and reserves, notice they simply grabbed it and it's doing the same thing. understand almost always research united way. so we're going to grab all of your reserves. now you can't have it. and the united states and 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 around,

and other countries dollars. they say, now 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 in. 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. alright, kyler, they're going to pick one second segment, dr. michael. lots of thanks for being on report debate. yeah, 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 time via the me to be with me ah ah, i use

the the service play by a whole set of different rules. it's going to force us in your words to get mean 30 and nasty in order to take them on. right. we'll use all tools at our disposal to do so. my name is same on our committee, so i'm the head of a family member can come up and killed our children and we will never forgive them for lead this place. i put in my what the and i think that was doing a furnace that they were bringing people to this torture site. i scanned ordering and abusing them outside of the law and allowing some of them to go back home and they would go home and tell people, this is what the americans we know and look it up. it was a pointless exercise. it's an open secret that private military companies have been playing a role in om complex worldwide. u. s. government doesn't track the number of

contractors that uses in places iraq or afghanistan, the united states army. and the military in general is so reliance on the private sector. i would call the dependency, but we don't know who's the on the ground presence of these companies overseas. we just don't know. the western private military companies can, in their turn, use so called sub contractors from countries with trouble past the piano. quite good. that had also been soldiers. i was, i was my drug professional drug is working with long limited malone. ship imagery to be merciless killing machine. now they fight and die in other people's was people carol, lot one or a dead soldier or dead marine shows up in this country and we started asking,

why did they die? why do what were they fighting for? nobody bothers down by the contractors. i had all the 911 anniversary and all memory ensuring impacts of the us war on terror. today we'll be hearing from a british army veteran on the devastating toll of the 20 african we do offer to many people the situation which we just give a also a heads a ton of on veil to the new government down on including a terrorist on yesterday i just wanted let washington's left with no want to cooperate with him coming leadership and a doctor in florida was, is outraged by refusing to treat patients who have been.