Transcripts For RT Keiser Report 20240713

I am max kaiser this is the kaiser report did you know that there is a growing global helium shortage thats right the world is running out of helium you noticed on running out of paper money right stacy indeed youre not but you know what you need the helium because of all the paper money all the printing of money because helium is not only are the stock prices and everything going up up up like its an a helium balloon but you need the helium balloon for the celebrations everybody celebrating President Trump while weve been here in new york right now where in brooklyn and hes tweeted stock market it says record how i spend your money well you would think that hes inhaling helium and so are the various stocks that make up the s. And p. 500. 00 and dow jones average but when you scratch the surface you find that theres nasty accounting fraud going on and all kinds of wall street derivatives tricks this is a real or just a fake ileum high exactly so stock markets hit all time high. And we know as we were covering a here the fed continues to intervene up to 250000000000. 00 a day and the repo market so is there disaster or is there not why or why is this wall street class right across the river here why are they so coddled why are they such big babies there was actually a banker by the way on the news recently leon cooperman he literally started crying on television because of Elizabeth Warren coming after his money. Losing. Money because the billions of the stuff that goes up and even when she did this is. Who this guy is i would say discrete to the male gender hes a disgrace to wall street is a disgrace as an american so here we have a situation whereby the Federal Reserve bank of new york right here is intervening daily in the repo markets the fed in washington d. C. Is also continuing some 2 we sort of measures we dont know but the stock markets are hitting all time highs and yet you look at the most successful investor ever Warren Buffett Berkshire Hathaways cash pile climbed to a record 128000000000. 00 in cash after reported a 14 percent jump and profit obviously cash is dead money if its just sitting there in a 0 percent Interest Rate war old hes not putting it to use hes not able to find i guess things to invest in but also on the other hand the fed is printing so much money so fastest processor jumping so fast like its hard to even spend it so this is like that the end game of this wealth inequality theres but theres that at the bottom of it we have a black hole like the people running faster and faster just to stay in place and the debt keeps on catching up with them and their Interest Rates are too. 20 percent and theyre falling sinker faster and faster into debt on the other side of the Balance Sheet of course is the top and theyre there earning so much money that they cant possibly spend it as we recently covered this 4. 00 trillion dollars this is 120000000000. 00 of it on Berkshire Hathaways Balance Sheet they cant spend it because its just its just sitting there doing nothing or buffett is bored you know leon cooperman is bored you know when you play monopoly if you own a certain the number of properties theres nothing to do except wait for everyone else to go bankrupt so theyre just Warren Buffett or linux overmen theyre just sitting in their office theyre just collecting all the rent theyre around cas there and they dont build anything they dont invent anything they dont add anything to the economy theyre just wrong t. A. s theyre oligarchs theyre kleptocrats and theyre bored theyre just waiting for everyone else to go bankrupt thats the only thing thats thats the only play left in the global Monopoly Game of which america is the boardwalk and park place certainly Berkshire Hathaway has missed out the stock markets on its here tear i saw somebody i think it was josh brown somebody in the Investment Community here in new york was saying like this is one of the most hated ever all time highs ive ever seen usually theres giant euphoria weve seen it many times people are ecstatic and it can never go down here you have a lot of very very successful big bankers very well known list of the stock market are all worried so i guess you always say stocks are climbing a wall of worry people are generally worried but sometimes when you have these chilling dollar valuations and you have the fed having gone through the printing of at this point over the length of this bull market which started in 1982 i mean suppose they probably have printed close to 100. 00 trillion dollars of cash and given it to their friends on wall street theyre friends of the fed and you just enter a period of lethargy theres really literally nothing left to do theres nothing left to prove theres no corporation that. Hasnt been bought out or merged or acquired in some way and its just a matter of waiting for either a the rebels to come with the torches and the nooses or be to be carried out on a stretcher and put in a box somewhere and forgot about so heres a tweet from melton to mirrors and this is referring to the Berkshire Hathaway 128000000000. 00 cash trial just cast 0 percent even losing because of them play ssion 3 of the 10 most valuable Public Companies in the world are holding more than 10 percent of their market cap as cash something something about opportunity cost of capital something shes referring to 0 hedges tweet about this and they show Berkshire Hathaways pile of cash theyre passing apple and google now so those are the other big giant holders of cash markets capitalism and capitalism it refers to capital and capital of its not circulating is worthless capital sitting in a bank account of Berkshire Hathaway is like a rotting festering pile of horse manure in lust you spread it out over the field you dont do anything productive with them a new or so warren buffet is literally sitting in a barn full of stinky manure cash holding his nose playing people totally winks with Charlie Munger whatever they do over there and dying from suffocating of the stench of his own cash since the fed has intervened mostly for wall street and all of Berkshire Hathaways companies by the way all the Insurance Companies and all the other banks wells fargo what cobi all the stuff that collapsed during the financial collapse and as we said you know we have negative Interest Rates so many things cant be valued anymore so how do you as an investor even know how to allocate cash if youre a Value Investor like Warren Buffett how to as you point out Warren Buffett is underperforming the s. And p. Underperform because in a way if you simply bought an index fund like over there bankcard with no fees he would be out. They perform himself but that because he thinks hes smart hes underperforming yes and pick or i suggest is a call the reverse hunger games that reverse under games are randomly picked 10. 00 to 15. 00 billionaires every year and strip them of everything get him down to 0 and force him out there naked into the world of commerce and see if they can build it up from scratch again introduce risk back into the American Capital system once you have a certain amount of money theres no more risk youre just clipping coupons for finity and you have no stake in the game whatsoever think Warren Buffett has any risk at this point no hes just aggregating wealth risk list only thats not capitalism thats a monarchy weve got a new monarchy aristocracy in america so you introduced the reverse hunger games randomly picked leone kuperman stripped him of everything stripped him naked and force him into the inner city and say heres mark i see what you can do now well also like what i was saying as well as Warren Buffett calls himself a Value Investor thats a certain sort of investor and that just looks for value long term value theyre going to hold for 5 years 10 years 15 years most investors you see on c. M. B. C. Are not Value Investors theyre tracing chasing the trends theyre momentum traders and theyre trading in and out theyre High Frequency traders most trades are from High Frequency traders Warren Buffett is a Value Investor but value the way to understand value is you need time to have some value so if time no longer has value because of all the Interest Rate the negative Interest Rates around the world it becomes very difficult to even be a Value Investor because all there is is the fake stuff the momentum whatever the fed is creating right go backwards in time to a time when these billionaires were just doing clipper routes and selling sewed on the street for nickels and see how they can regain their wealth from today in a world of negative Interest Rates because as you point out if you were to put Warren Buffett. And say explain the Value Investing in a world of negative Interest Rates i will bet you any amount of cash or he could say absolutely nothing they would be mute if theres nothing to say the value to a long gone the horses jumped the fence j. P. Morgan the biggest bank in america can we be in a situation where like all of these unicorns in Silicon Valley they were held privately they were unicorns on paper only and then they tried to bring it to market and resell investors this time around said right were not paying those numbers. With bitcoin it was the Retail Investor that got in way before bankers here we have a situation where stock market everything seems to be booming Consumer Spending is up everything looks great but j. P. Morgan the biggest bank in america who. If a if jamie dimon cries the fed really answers the phone and they start bailing out stuff but j. P. Morgan pours 130000000000. 00 of excess cash into bonds in major shift quote the bank is acting like the next recession is here everything the bank is doing points that way theyre looking like they think theres a recession coming they could be wrong who knows right now theyre acting like that pouring this money or the Business Cycle which is you 5 in a recession would be up and thats over were now in a period where j. P. Morgan and others like buffett and kuperman are holding up the drawbridge the castle is being closed everyone who is not a billionaire right now is going to be left into the no mans land and are going to be fighting for every scrap of food you can possibly get the oligarchs and it started with 911 this culminating in the air 2020 or pulling up the drawbridge and leaving everyone else out there whos not a billionaire to fight among themselves for the remaining crumbs and cans of soup of course a lot of people are blaming this exact movement j. P. Morgan for causing the turmoil in the repo market so that is one thing that can happen is j. P. Morgan is the way all they were the london whale there the american whale there the whale in hong kong theyre the whale everywhere around the world so if they pull liquidity from the market as they have a huge cash piles well they could cause everything to crash if they are the market essentially i know you have in the past have been the market and its a bad place to be right well up in j. P. Morgan again proving the point and this is so suit 1008 its not a. Liquidity crisis of insolvency crisis j. P. Morgan is insolvent as is Deutsche Bank its not a liquidity issue theyre insolvent they have acquired debts that are a 1000 times greater than any possibility of ever paying well exactly because the you know j. P. Morgan is the largest creditor in the world they all they own us they own americans and americans are in debt and they cant pay anything so essentially thats why theyre also bankrupt j. P. Morgan is insolvent Deutsche Bank is insolvent all Major Money Center Banks in the world are insolvent and all the money printing in the world is not going to solve the problem because at the end of the day were running out of helium well go shop thats what donald trump says oh fabulous well dont go away stay right there coming back in a minute. Your government our government and all the other major governments of the world know whats going to them when its go. But they havent told you and they havent told me they havent though. Imagine something as big as the earth. Is going to cause tidal waves earthquakes volcanoes are going to wrapped and its going to chill. So very for a while right. My great grandfathers quote. Nobody would care about the law or prison so youd have wallace the shooter of. A turtle between the. Led. Led. Police to the field for a specific. Welcome back to the kaiser report im not at cern professor steve cain is the author of the instant classic deep funky economics hes also got a patriotic page where you basically are like you know taking lessons right from professor steve keen steve welcome back good to be him why the patriots sounds call its going very well its a good its maybe a new public intellectual without having to worry about a Single University bureaucrat or University Meeting and i can research what i want to research and i can do it in europe where most of the activity in both economics and environment is happening and thats as much 2 areas a lot of really im very grateful my patronage you know its fantastic and a lot of people sign up to your patriotic steve k. And its a heck of a deal now tell us mr mr professor steve king the u. S. National debt is now 23. 00 trillion dollars of past 22. 00 trillion in february reading about a trillion dollars every 8 or 9 months i like to move my shoulders around i say that as the chilean dollar debt dance is a sustainable whats going on here yes it is. We obsess about the level of government did we ignore private debt and as myself and Michael Hudson in a small band of renegade a comment in saying for a long long time Government Debt is not a problem private debt is the reason being that the government owns its own bank and it is creating when its creating dead its still tinys to creating money but it spends into the into the physical economy we use government not just government created to put government mandated money as a form of commerce so we need it to be produced boss someone the government produces of the mirror image of that is the debt that it came in lights on the other hand we borrow money if you borrow money from a bank the money they give you comes with a debt you owe back to them when the government spends money the government you can email its the debt you get the cash so part of a functional capitalist economy is money created by the guy. And theres all sorts of austrian projects of money etc etc but capitalist promise con happen without money and the government creating money creates money which the receiver gets without did the government carries the day it doesnt matter that the government created money loses its purchasing power continuous this is one of the hassles people have if they want to think about the functions of money we talk of money as a unit of account as a store of value and a means of time and we obsess about the store of value but in fact the most important function of money is that it is the means of payment now if you obsess about the store of value you worry about money losing its value of atomics the trick cetera but if money is losing its value 1. 00 thing youll do as a result of that is spend it and part of that spending is actually whats stimulates Economic Activity hoarding money means you get less exactly productivity out of money so a certain degree of depreciation of money over time actually encourages spending you get obsessed with about it as a store of value you dont spend you get a lodge amount of cash and 0 economy but a lot of people critical of the fact that money is loaned into existence along these lines that the basis of capitalism should be capital and capital is something that accrues an interest that people are putting in the bank and therefore using too fractional reserve out in the case of the fractional reserve Banking System so without capital you cant really have capitalism so what youre describing it doesnt sound like capitalism per se what how would you describe that system scrub of the real world i mean a lot of people say we should have gold should be money bitcoin should be money all these other alternatives money because they dont like 1st of all government being involved in creative mining and they also dont like dip being opposed to go into it is not a factor the corporate debt the bank debt is a factor here and debt of this of the of the private sector going up is a problem. And we see that trend exacerbating all over the world to this day in the sense we know check in place for that is the dangerous one because its a level of private which is partly private gets stimulates the economy because when you borrow money you dont borrow for the shia pleasure of being and it you borrow to spend and that spending should be the top of Capital Spending or talking about where you borrow the money to establish a business to make goods and services to sulfa money and thats what gives you a functioning circulating capitalist economy instead what weve got now is bankers lending money for us to borrow and go and buy an assett and drive its process up and speculate on the process sold and that gives us a form of Financial Capital rather than a healthy industrial capitalism but i want to get back to her and that process of of borrowing money to gamble on asset process has driven us into the hospital of private debt in history so you whining about 22 trillion with those with the government it but i think the level of of for profit didnt america is not to the dead of the nonfinancial American Economy households and Industrial Companies to the Financial Sector is 150 percent of g. D. P. Which means its about 40 trillion dollars so the real worry is level of profit thats ignored by conventional economists and thats what actually causes the crossties of capitalism. And to manage this pile of debt theres an urgency to keep rates low to go to the 0 bound and in some places in the world to go negative now youre a guy whos in a book called the banking economics and youre familiar with the work of dr Michael Hudson anothers and the point is that not since the bronze age to today have we ever seen an economy where theyve entered is negative Interest Rates never happened its like negative entered writes being generally applied on the deposits that the profits banks have with the central bank and this is the 1st level of a malfunctioning system you get that you. Point there now we actually have a negative mortgage rights in denmark which often absolutely absurd so were triggered this need for these negative rates is that this service the ever piling in of escalating dial up pile of debt was the way to commit what would be an accounting front and theyd have Interest Rates rain that time has no value of effect time as a less than 0 value now i mean unless youre going backwards in time this is just counted in a surprise it is a sign of a crazy dysfunctional system and its happened because fundamentally the economists who are running Central Banks and making Economic Policy dont regard private debt as mattering at all i think the level of private debt has no real impact on the Macro Economy so they click the dot of what they nor it was people like myself in model house and say private it actually is part of demand part of aggregate demand when you borrow money you borrow it to spend so that credit actually increases aggregate demand the mainstream economists think that you borrow money off another person whos also a nonbank and therefore that person spending power goes down yours goes up when europe the opposite happens overall they dont think the level of private debt matters theyre wrong because when you borrow money from a bank its not borrowing from somebody elses bank account its creating debt on one side which pushes up the banks assets creating money on the other which produces a billet is which is your deposit account you then spend that money so if credit is positive it boost demand it creative negative it reduces demand and thats been driving the actual malfunctioning of the American Economy for the last 30 is completely ignored by mainstream economists so we want to get at it to the level it was back in the fiftys and sixtys when profit was about 40 percent to 70 percent of g. D. P. Thats sustainable because we ignored it its now it reached 170 percent during the financial cross now 150 percent were living in a credit stagnation well have too much profit right anyone what this a socalled minsky moment where the debt is used to finance these assets that are used to coax collateral to increase the debt by. And it goes on until it collapses just giant ponzi scheme what do you make of the fact that there is close to 5 trillion dollars held by you know one percent of their call that are yelling basically 0 its money that is dead money its not circulating at all theres a side that there needs to be a continuation bailing out of the economy with these low rates these artificially low rates these negative rates and yet that money is just sitting collecting dust its not circulating 5. 00 trillion dollars worth in the u. S. Economy. Why is that is how come its not why is the velocity of money which is you know the bank lending so to bank based on the reserves of the other bank except for i thats a its a chart you can look it up velocity of money itself of Business Activity its at record lows why why is that. Because people are carrying so much individual dead your reaction to that level of debt is still going to spend less and save money so that i can pay my debt off but if you if the individual level you can save by ending the spending list and you want but at the aggregate level your spending is somebody elses income so if you put in for a 2nd so that the 4. 7 trillion it would create more Economic Activity in the hands of the bottom 50 percent of the 2 trillion in wealth that would be spent the Multiplier Effect would see the stock price of the top one percent probably increase by more than that what 4. 7 percent other words it may actually get a money were greedy and you wanted to get your stock prices go higher you would let you give that 4. 7 trillion as a helicopter money to the bottom part of the economy and then go out and spend it as they did because im not going to go buy a picasso for 200000000 yeah theyre going to buy maybe a house with their money that they get and they have to put furniture in that house and they have to the other you know buy food for that house etc household formation which is at a record low and at a low it would increase in the mix to lie in the sense that dead money like that is dead money because money should be turning over the course Economic Activity as your site. If you look at theres a wonderful measure by the louis Federal Reserve in this in the fred dot about as they call it called the velocity of money of 0 maturity which is the best measure we have the money turning over and you look back in the ninetys and fiftys and sixtys money to about 1. 00 tons per year so roughly 2 times a year so one trillion dollars would cause 2 trillion dollars worth of Economic Activity it rose rapidly during the high inflation period 3 and a half times so one trillion quizzers do interior apathy its u. P. D. Because were actually ignored the fact that its now turning about one point want to 1. 2 so one trillion dollars worth of cash is only causing about 1. 00 trillion dollars worth of g. D. P. Its because people are worried about the debt level they have if youre juiced the debt level and all that money also back into the hands of the poor it would be turning of a trois she year out than wants and would have to have all of the economic i so theres a write off the debt like student debt 1. 00 trillion i believe or want to play 1. 00 trillion dollars you can either strike that off 0 or you could dump 4. 00 trillion or 4. 00 trillion in cash into the economy either one stimulates the economy and has no impact whatsoever on any corporations bottom line because the corporation would actually get more cash coming in through the door right to fire you think at the aggregate level we if we extrapolate from now individual situation to say that should be gov it is only ask you this in america there isnt we dont have health care universal health because the racism its always been the case that the white population doesnt want the black population to have Good Health Care thats why we dont have health care in america thats the unstated truth but as is this true process possibly in economics we could release a 4. 00 trillion or just under 5 trillion dollars of cash into the market but it will lot of it would go to the black population and the racism the hardened cultural institutionalized racism would be would want a lot of that to happen here from outside of the u. S. You observe these things as an outsider your thoughts on that no because that within in the European Union would. Have the same problems and adults have the same problem to solve the same obsession about saving money at the aggregate level but youll saving at the aggregate level actually reduces income at the at the individual level reduces income at the aggregate level and thats thats the fallacy of composition the kind spoke about back on the not in thirtys and people slipping about the heads around that idea look at the machinery in the plumbing of the markets in other words in the repo market the overnight lending rate is busted and if you got 10 percent on the ever seen it distorted before it is this a problem you have is happened a few times before but whats actually happened is that what used to be whats called a chordal system book or color system for the right of interest of the central Federal Reserve say it so they have a small amount of reserves existing and then they simply supplies musher was necessary to keep the right you know point 25 percent in either side of the interest right theyve got when you have the financial process been enki increase the amount of money reserve money in the economy from trivial levels to church rogans rates road and dollars with our i got a car up there steve came professor steve came the instant classic bunking economics also patriotic is available for you check it out thanks for being on the kaiser report good to be the next thank you for being on the kaiser report audience and so next time ask eyes are stacy who are saying by l. Those who consume Corporate Media will believe the bolivian harmony rightfully overthrew the democratically elected president of bolivia the word coup is not mentioned but this is exactly what the tried and tested Color Revolution playbook was on display for anyone paying attention to libyas democracy is in retreat. I am in touch. Now on this one im not yeah i. Am i can join at the top and im on the top of the not my. I get is exhausted. And then i boarded and then you come from i was originally for this to genius and my name is come to this my nice well meters are number. Are known around operation months destroying my home so must insist doing yoga again goodness. This mountain top removal man and. This is the time to do spiders just last week. This is what theyre doing some order beyond. Significant share of the soft ration and theres a lot of loose lance theres a lot of pollution in sa this is what its doing with the water. Of muscular