the max kaiser. this is the kaiser report stay think. right, well max, you know what? 2 things i want to point out are getting the 2nd half michael hudson. she 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 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 of 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 suicidal 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 the controlling 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, what 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 produced 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. they, the way the nearest garbage responded, 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 regime hassle wife way all those old tests because it gets to the point of a doom loop and the doom loop. they point out that and the names of these, the researchers are man strout and sushi 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, 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 a savings are invested, driving asset prices up, and yields down and indirectly by fact, 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. i remember, as you've pointed out as well, they get all of that reward,

all of that reward the 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, the us went through a transition from our 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 ron t, 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 oligarchy 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 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 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 and i'm not going to ever be friends. with 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 $0.40 for 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 in 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 break apart. right? and the 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 sam, or any one of these hedge fund managers out there, you can insulate yourself and profit by this unfortunate circumstance where the finance airs 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, they're getting angrier and angrier and, and one would understand why americans are getting angry because they're going for meritocracy to neil feudalism. right. or as gero salenti called it the

slab slave landey a slave landey a 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 me an straub and 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, ups 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 ball. 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, is making 30000000 a year for one show a weak. 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 support to help the poor we doing it for you, hurts us more than it hurt to. so that's that propaganda to continue this policy that the data shows is causing the stripe. exactly. well, we're going to take a break and when we come back, dr. michael hudson, don't go what? the me ah, ah september the 11th 2001 day that reshape to the modern world. i remember watching the world trade center burn on

a tv at the cia and i was standing there like this just looking at it. and a colleague of mine was standing next to me and he said, my god, did they have any idea what they've done? we're going to kill everybody now. everybody, the, the live tv images promote the us into declaring its war on terror. began to bomb afghans, villages and homes, and get people hurt and, and killed the main goal of destroying terrorism and then was it achieved? yes. and no. okay. to essentially no longer exists good for us. but there are certainly other terrorist groups that are worsted on having alternate realities to experience or even live in like a role or does my idea, you know,

especially during and where you can go anywhere in the game world, go everywhere, choose the game that you want any open roll game, choose it, and you are now on a vacation in a place where you're like flying helicopters or you're, you're on beaches, you're, you're in a city drive, you know, whatever you want. you name it these, these are getaways. the war on drugs started as a way to come back, a great problem. what's the one? it's part of the attitude of the nation, not just of north dakota. and it got to be something that you could get elected. this time, the fight against drugs took a check and told us that and there was competence, short form. this is way too dangerous for him to be doing. clearly, they put him in harm's way. a rural college student does interest get shot in the

head and found in a river like something else had to be happening. the me welcome back to the kaiser report. i'm about to 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. 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. united states went off bowl and at that time, people were wringing their hands and saying, oh, now that the us and was told of walk the civility to control of the country. and i

pointed out that one countries in central banks didn't gold anymore. the cash and 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 by replacing bold with us treasury securities meant that other countries are international reserves by financing the u. s. military balance and payments that was because all throughout the 190906 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 that well, this little creative react to be supported by socialist left dollar is resist the

dollars, but a mediately upon publishing that book within a month term and con, asked me to join and the defense department gave the institute $85000.00 grant, much more than i got the book for me to explain to them how a very it was worked. and herman come so that i would explain how american and monetary and realism was running rings around british colonial imperialism, and of the biggest ministry. and instead of being spurring and a reaction on foreign countries, not so dollars, it became a how to do a defense department. ca. i was brought up to the white house to meet treasury secretaries rather than everybody. and they said she would have

thought of leaving noah, crated old forces. other countries in by us dollars was all and was a dollar inflow. so the more we spend abroad, whether on military spending or reading this rate, all this money, recycled. and actually it's the balance of was financing the domestic budget. what is foreign countries by us treasury. so there it goes. they don't buy corporate stocks work or not. so this is an explanation of how the us use the international monetary fun to control. and the operation other countries and make better countries, it can be one u. s. foreign policy. it's shown how the world back out against other countries independent and their own food had to rely on us agriculture. showed us control of the world. great organization was designed to break or,

and markets and especially united states had, eventually set out during world war 2 story england and a rival 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 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. it's one where to maintain a trade. we have to maintain a trade 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 just report it. 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 to foreign countries. only 10 percent of what america 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. it's profits, it's rents, 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 demo stand of 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 the military industrial complex, basically all the government things, you know, we need to make our profits and in boy labor, by building these weapons choice, you can either drop the men to the pacific ocean or you can drop them into work. so it drop the weapons into a piano, sam, and as far as the military is concerned, ok, we've already spend 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 to them. so they've left the minute

dana span, who knows what kind of stands for use them, or certainly is not going to use the airplanes or helicopters states. the us doesn't care. all the carriers aid the campaign contributors the military 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 to the contractors and all the generals who got rich shops. so you make the point that 90 percent of the $2.00 trillion dollars 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 what's interesting now is dr. michael on 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 its days at the banks that doesn't actually rate reach the people, but 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 in 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 out of stan 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 get an enormous amount of money to renters and mortgage borrowers so that they don't get, well, they give them money for the renters. pay the landlords. so the landlords pay the banks on the mortgages that they've taken out to buy that 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 in 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 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. in the united states, to talk about your book, super imperialism. that's coming out of 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, an apple empire. ok. how do they do that? that's exactly the point. how is that? the united states can rule is a creditor against the 3rd world countries that american bondholders control europe and other countries by being better. it controls them by saying, well, all of your foreign reserves are now held in the united states. for instance, layla held us bold and united states and reserves united states simply brad, and it's doing the same understand almost

always research. united states said, well, we don't wait here. 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 have, 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. so the dollars they say now that we have to hold our money and dollars the 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 dollar right? the area, the dollar area will be shrinking united states europe, so that you're not run a budget deficit ends in style. so, without running a bunch of deficits, there aren't euro securities for people to buy out. they're going to pick it up on a 2nd segment back to michael out of thanks for being on as a report. and that's going to do for this edition of kaiser report with me. my guys are in, stacy, herbert want to think, i guess dr. michael hudson, and so much time via the me, ah, 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 a monarch,

many things i'm the head of a family member. can, can they attacked up and killed our children and they will never forgive them for leave this place to my, what the united states was doing. and then they were bringing people to this torture site. i scanned, ordering and abusing them outside of the law allows some of them to go back home and they would go home and tell people, this is what the americans did. we not look at it. it was a pointless exercise. when our show seemed wrong. when all just don't the rules. yes, to shape out the thing because the after an engagement equals the trail. when so many find themselves worlds apart, we choose to look for common ground in

the the me ah, the $911.00 anniversary and he's been looking at the lasting impact of the us led war on terror. they will be hearing from the british army veteran on the devastating toll of the 20 afghan conflict. off to many people for a situation which we just gave a point. so i had to tell about this new government for afghan. this done including a terrorist on the f. b i most wanted list washington left with no option but to cooperate with the incoming leadership.