Buybacks which up and told recently were illegal even do a stock buyback so this looks like nosebleed territory but its been this way now for a few years and there doesnt seem to be any stopped any any any any stop sign in the road it does seem to be any end to this for years id say all through the ninetys and the early 2000 most people in the market still had memories of real markets that you would genuinely that there was no fed to rescue everything so since greenspan in the introduction the put you know it took people a few years to realise that any. Time any even a slight i mean when when markets go down 11 points them up but the fed intervenes like so the fact is that. People now are the opposite of what they used to be they used to expect a cycle now they dont expect a cycle every participant in the market does not expect a cycle to ever be able to fulfill itself so that the fed will always tend to be of course i think that makes it probably more dangerous for when they do lose control or when fewer and fewer actual people are participants and so the fact is like we know Something Like you know 85 percent of all stocks are owned by the top one percent so its not like everybody is participating and the fact that we keep on pointing to this thing hey look this magical bowl of you know is glowing and this means something to you but it doesnt mean anything to anybody of course donald trump this is what he looks at hes a new yorker this is what is defines his reality and he says down now is that chasm p. 500. 00 closed at record high so he was super happy about it well for most of the American History there was always a competition for capital. Between labor and wall street main street and wall street theyre always competing for capital and during the reagan years the Reagan Thatcher neoliberal period that we can look back in now look at with some hindsight we see that when reagan fired the air Traffic Controllers any fired the gun to dismantle organized labor in america organized labor has been demolished in america and the average income for americans hasnt budged at all in 2030 years because they were the neutered from their ability to compete for capital labor has no seat at the table labor has no seat at the central bank labor has been abandoned the jobs have been shipped overseas wall street now gets all the capital they get 100 percent of the capital every dollar printed by the fed goes directly to wall street now and bypasses labor bypasses wages just goes to wall street and furthermore the deregulation juggernaut has continued to pace the sense reagan so that all the rules in place to try to keep excesses from developing on wall street have been removed and so the question is is this the end of a cycle its at the top of a bubble or are we going to see dow jones up another 100 percent over the next few years i think everything the way it is now you could see the dow doubling from here because there are the rule of law as been obliterated when it comes to wall street as part of the doctrine put up by eric holder you have Unlimited Money available at 0 percent interest or wall or the fed pays you to borrow money thats not available to anyone else in the labor market and the trend toward taking everything private as ive spoken about on the show many times to face discuss bought out and the number of mergers and acquisitions is continuing to. To go forward trillions of dollars being taken off the table i mean if were all playing monopoly. When all the major pieces on the monopoly board are being owned by one or 2 private equity guys and then everyone else is going to be basically in that one square on the monopoly board called jail were going to get to a headline about the 4 trillion dollars pumping up the stock markets the fed intervening but before we get to that i want to quickly look at this other chart which is the stock market seems to like donald trump more than any president since the 1950 s. Stock Market Performance was number one under f. D. R. Number 2 under truman number 3 under eisenhower and 4 under trump of course f. D. R. s boom was after the crash and the introduction of massive new deal you know giving money to workers to you know build up our infrastructure across america and replant trees and agriculture that had been devastated by the dust bowl number 2 truman he came into power in 1945 right after world war 2 and then he oversaw the Marshall Plan nato the building of nato so its a huge Works Program again i pouring money into lending to europe and also building up the military eisenhower right after truman so again part of that cycle of of this huge money printing for the military and now trump which is just a similar to f. D. R. But the opposite so it makes sense that he would be in the top 4 is like weve had massive money printing and intervention not for the ordinary person but for the oligarchs for the for the wall street kleptocrats it was former chairman of the fed ben bernanke who said the lessons he learned in the Central Banks learned after the crash in the depression were that they have something called a Printing Press memory have a new News Press Conference he made the statement that you know we should have at that point as part of a few trillion dollars and thats what were doing now thats all we do now were never not go stop printing printing is gone x. Exponential and richest rates are at 0 and so they meet every single problem. More printing and more money more credit and theres nothing stopping a bank from loaning into existence any number of billions of dollars they want to because if they ever make a mistake under the last 20 years whats remarkable is that the creditors get bailed out for making bad loans throughout the entire history of mankind the debtors would be having to face getting bailed out for having made bad borrowings so i think that money printing answer works once and thats the only time you could ever use that because then if you have this on the economy that we have now because that all the investors all of wall street is relying completely on this and they know that their buddy at the fed is going to rescue them so theyre front running the entire Financial System thats why all of the gains almost entirely of all gains and wealth in the United States since 2008 is to the top one percent because theyre front running the policies that their own friends are putting into effect here you see it in this headline the 4 chilean dollar force propelling u. S. Stocks to record highs this is from c. N. N. And they say the federal reserves rescue of the overnight lending market appears to be having an unintended side effect its juicing the stock market the September Spike in overnight lending rates revealed that the plumbing of the Financial Markets is broken banks and other Financial Institutions simply didnt have enough cash the fed acting as a plumber started pumping in lots of cash to ease the crunch they claim with unintended consequence no thats the policy you know that its as one been saying for years now the policy is to is Financial Engineering is financial irrigation they let the water flow of money liquidity go only to their friends on wall street and labor gets nothing and so is it a one trick pony well its a system thats in collapse in other words if you if you have a water main break in your neighborhood and nobody stops it the hole they were gets flooded into all the neighborhood is. Ministre so weve got a leak at the fed weve got a a leak of the capitals leaking out theres a flood of capital without any constraint whatsoever theres no down theres no barrier there are no laws there are no rules theres just flooding the pockets of a few people and it will kill the economy thatll get its get its killing the economy its the economy is dead its dying you know this is i believe a trick theyre diverting the attention of the media and all participants in the market to look at the rising stock prices because thats easy to create and manipulate whats not easy to hide is a collapse and pile of debt collapsing banks so that actually the repo markets and you know we dont have time to go into that here but just google it research it yourself its getting worse and worse and there are signs that theres some major major bank about to collapse or perhaps its collapse and by the time this could even air in addition to temporary cash injections the fed reversed course by promising to purchase bonds a ton of them after months of shrinking its Balance Sheet the fed that would to buy 60000000000. 00 with the treasury bills per month through the spring of 2020 as a result the feds Balance Sheet has swelled by 286000000000 dollars since Early September to 4 point 05 trillion dollars i get the warnings but the warning signs been flashing for 20 years and you know they getting worse and worse and worse but that doesnt mean anything because the system already broke a long time ago and all thats happening is that the people who are benefiting from this free money are not stepping up to stop it no one is going to stop getting the free money and the people that are being destroyed by dont have agency they dont have political clout to stop it so theres this is just going to continue but as you see donald trump is distracted by the rising stock price many people were very very very simple human beings were simple were simple people as a society were all going to look at that scene and we see a celebrating at c. N. N. Is celebrating everybodys pointing at that so nobodys going to. At the that actual whats going on in the repo market except for us and of course were going to get blamed for it when it all comes crashing down because its all psychological those say and we psychologically warfare against people and the market so thats in fact a c. N. N. Says part of the impacts could be psychological some of esthers have been conditioned to buy stocks when the fed is growing its Balance Sheet such a strategy worked well when stocks soared during the 1st 3 iterations of quantitative easing known as q e one q e 2 and q e 3 whether it should be considered to a 4 or not in the eyes of the markets is just semantics says peter brook far chief Investment Officer obliquely Advisory Group so he says markets look at these increases and theyre going to buy youre going to buy in if the feds Balance Sheet is going up youve got to buy dont fight the fed right so that without any rule of law then by crime. Its going up for us we need an e. T. F. All right well were going to take a break and when we come back much more coming your way. Is you will be a reflection of reality. In a world transformed. What will make you feel safe. Tyson nation build community. Are you going the right way or are you being. Direct. What is true what is right. In the world corrupted you need to descend. To join us in the debt. Or remain in the shallow. Up until recently politics were about policy preferences and ways to implement them that is not the case today your political views are now what define you as a person and there is a moral dimension bias against those who are not politically correct is the last acceptable form of discrimination this is the end of politics. Seemed wrong. Rowles just dont call. Me old yet to stamp out disdain become agitated and engagement because betrayal. When so many find themselves worlds apart we choose to look for common ground. In this community there are people who believe. Its really hard there are no jobs and you see the kids. And as a parent. I can come up with arguments and theres a lot of conflict within the game and between the teams most of the conflict i would say. Is maybe. Close one of the childrens. Is good because the state of california makes 6000000000. 00 a year of the prison complex just to get some 25. 00 where. You dont care. Anything. Welcome back to the kaiser report im max kaiser you know back in 2012 a film a paired called the 4 horsemen and it was incredibly popular and it continues to be popular i knew to this day because it outlines the big problems facing the globe both economically and socially the director of the film is with us right now ross asked prof welcome back to the kaiser report thanks for having me ross youve just returned from a trip to new york any observations to make of what you saw in the greatest city on earth we were trying to make a trip twice a year to make programs because when youre broke us and you dont speak to americans or such brilliant orators it makes your job a lot easier. To be some really excellent people one of the things that was really striking for me things firstly the infrastructure around new york really really needs some attention and it does the same. That its getting that now whether thats political d will or just miss out misallocated capital d you know but firstly the infrastructure is tired 2nd thing is the public he writes that ive seen noticeable difference over the last 1218 months and also sit in a School Different empty unit i know retail is getting a battering but its mold and so the 3 things are still what i would say is the food its amazing the people are absolutely spectacular and the Customer Service well when you come back to london having now dacosta so this its very difficult sort of Climate Science now whats interesting is that in new york city you have projects like the highline which is on the west side of manhattan they converted to an old rail track that connected warehouses in the meat packing district to a public park and they spent about a 1000000000. 00 doing so and then all the real state along. On this 2025 block stretch on the west side of manhattan the laurel west side has been blown and turned into a multi 1000000000. 00 development has been a huge boom of course after 911. 00 the downtown area in the Washington Area as had multiple building projects theres a huge boom there are the Billionaires Row on Central Park South which has the more billionaires than one building probably anywhere else in the world that is a boom but at the same time the the subway system is in decay is falling apart they cant seem to build any decent subway Public Transportation is is in disarray so its a mess like its an in a capsule ation of whats going on in the rest of the country and a rest of the world theres a concentration of billionaires at the top and theyve got luxury skies pentasa in the sky everyone else aims of paying theres no funding has no funding for transportation is not a funny accent or a it is that a Fair Assessment you think. You are the guys a. Guy called henry george and he talked about the line question this is exactly the same thing happened in london with the cheap illegal and and as soon as you put Public Infrastructure in place which is page full of the text what you do is uplift all the land values so that piece of Public Infrastructure serves now if you will example of doing it properly and doing it well and having the infrastructure pay for itself hong kong did it by using loans are now if youre not going to tax unearned increment. Lift and learn values youre going to get a billionaire class that you go and i was the sound as says everybody and that is a policy error well if he wants. An area to focus on to reform the tax system to capture the understanding criminal and then socialize that socialize those rents then infrastructure is exactly the place. We should look right you mentioned one kind there and of course up until 1907 it was part of britain are am some kind of state of britain and then they they changed in the pan and now youve got a situation there where they had enormous wealth theyve had property prices bombing but that youve also had social unrest and youve had an enormous pushback by folks on the street they just had an election 75 percent of the states are now held by the Democracy Movement what do you see happening in han kang is that is the death a good theyre what we call the global insurrection against banker occupation our job oh they they is this again is this a flashpoint in the global struggle of the people versus the bank stars ross yeah but look its happening everywhere so theres some wind in chile the famous sign the woman was holding is saying near liberalism was born and this is where it will die well she got a near liberalized the color of it you then start to get the billionaire class and all the Socio Economic indicators going the wrong direction because we know the rules are free. Under our society in the near liberals have. Only world this ideology which is inherently unsafe human. But its very pro banks as you say so as soon as you get a new liberal arts economy youre going to get this on going so decades and hong kong is just one canary in the mine chile is another south America Cross south america and remember this that what were seeing in hong kong is really pushed by the Mainstream Media because they have a narrative they have an editorial line and they want people to see those protests notice how serious protests you see in paris for instance or the chelation again protesting no fuel hike theyre protesting near liberalism they dont want this enable why is they living paycheck to paycheck. And quality of life is letting him prove the media will trump it will sort of protests ignore another because it suits their agenda for a mess in chile there of course they also have a 911 and that was 911 back in 1973 when their democracy was overthrown by basically u. S. Led. And their liberalism or that the doctrine of Milton Friedman has introduced and this was really a Monetarist School of economics i just tweak the money supply and somehow this leads to growth and we have the result of this now 4045 years later where the Central Banks who are controlling the monetary spigot the monetary policies they have this great prop policy where they print trillions of dollars they give it to their friends on wall street 1st who buy assets with it and there trickles down through the economy every single layer where it doesnt what doesnt well what ill do what i was going to say was that it has the effect of becoming available to other parts of the economy but at higher and higher Interest Rates so yeah i get a payday loan loan at 3000 percent annualized return it started off as a 0 percent loan to a billionaire on wall street but youre point the money doesnt trickle down is not a fact of money velocity which is a kind of a measure of how how much the money is trickling down is at historic lows its almost at at 0 and we see a lot of distress in these Financial Markets what do you have you been following the repo market and the new york fed is bailing out the market the same to seems like q e 4 theyre just not calling it q. E. For its multi 100000000000. 00 programs every week what do. You call it q e well well what is it could you read the whole market that was centrally planned. Sheet will carry so what it is. Carry infinity because like pringles once you pop you cant stop and youre in the u. S. And the u. K. Across the vertical is the japan if occasion is intensifying and we have in thoughts when we talk about a laundry who was ousted and killed in chile and then british a put in place and set off to that piece in the film which as you rightly refer to as the 1st 911. 00 junkie comes in also and then we go to an animation about vietnam me and how it loses its purchasing power over time by the people who really needed at the bottom in the real economy and i said about him i mean the bottom of the triangle the people in the real economy the teachers the farmers the nurses the people who actually have barely touching power of that money at that point has diminished so much that they have to go and take on private debt to augment that noted salaries and also the value of that money so those people at the top of the pyramid the guys that you mentioned the bankers the central bankers cetera giving its a left friends they have a i mean its not even a headstone or an advance its total no no. And its ironic isnt it Warren Buffett who often refers to gold as the barbarous relic isnt it interesting that throughout his career he has been the recipient of this money right at the top as it as it comes out the spigot and then deploys in different areas of the economy its no coincidence that hes sitting on the cash policy setting will now why because very simply the game is rigged so buffett has got a big cash pile a 14050000000000. 00 aside hes got nothing to do with it and austan so i just came out recently that just under 5 trillion dollars a sitting in bank account ceiling 0 doesnt nobody knows how to do it theres more money as an economist the classic liquidity trap they say theres always going to happen you know. It did and this money is stagnating the night she came out of a meeting today. Bunch of investors in london and theres a lot of american money now chasing any kind of do not even really doing that you diligence they just want to deploy capital because they have to and that means that really bad ideas get funded and this is classic you know this is misallocation of capital not only in a curious about right back to the crisis instead of letting banks go bust and drill and clearing out the deadwood what we did is we prop them up and again now from that moment from that decision. So now were going to continually miss allocate capital week in week out and the repo market back to that is just the canary in the line you know and of course they cant call it q. E. Full because it would go because the markets would tremor but i feel pretty nervous and and itll work until it doesnt you know in your film the 4 horsemen thats its kind of like a infection all Fictional Television we have cells like the wire or the dish where they show multi dimensional aspects to a problem in the 4 horsemen which they mount 22. 00 obvious showing the multi dimensional aspect of this so the bankers do it the bankers do but they cant do it without what we now now jamie diamond as involved as per the recent filings and prosecution a racket theres a racketeering amongst all the elites in the political the banking and the media class are involved in a racket ross yeah look you know as i said it works until it doesnt i mean you know were here in the u. K. In the u. S. The systemic strolled and the malfeasance that has gone on is simply staggering we were here in a program where it was going to go ding under uncovering. Picture old one of the banks over here working with one of the police and Crime Commission has. When you tell people we working with the lawyers on it they just simply dont believe you because this. Of this is is just is it is own sizeable that is the Business Model d now that is the asset stripping the political favors. That it is getting in bed with various Political Parties to be able to milk the Financial System so youll gain rent seeking changing rules this is now apparently business as usual and overseas are going to end well obama doesnt get away scot free by the way he had that meeting with those bankers and he said listen only thing standing between the public and you pitchforks basically is me that was him and what did he do you decide its a bailout of wall street not main street massive mistake and were still living with the consequences of that now thats why well of the reasons why inequality is going through the roof while just like the 4 horsemen i am mesmerized by your expertise i must hold you off for another segment if thats ok ross yeah all right thats going to do it for this edition of the kaiser report with me max kaiser and Stacy Herbert like to thank our guests ross asked roth if you are a just on twitter at kaiser report and i signed by ill. Join me every thursday on the alex salmond show and ill be speaking to guest of the world of politics or business im show business ill see that. Special something we can thank the many. Yeah but it also elsewhere. You want to hold dont think in russia think was over forget it so part of the formula for. Us who have lost their summer muscles and. Russian outlets eligibility for the international committee. Is at stake this includes events like the Tokyo Olympics and the fifa world cup in qatar if i am in the early as last. Year when you can win you know just as it was 4 years ago in moscow antidoping plavix at the center of the scandal so he tampered with the doping samples database and one does greegor you want to give have to do with it and you know. What is was done to pull zameen is not. About the little sportsmen that use the push on the machines that you will ship but to expose me in the ocean touch a little to see the pollution are doing is not. My feeling with this world its worse now as were so confused and fearful and theres a certain generation thats controlling all the Politics Around the world when that generation dies off and children are brought off the smooth freedom really are less materialistic dont really care about these things dont even more automobiles want to live by the side job want to ride a bicycle this movement is global and its going the world is going to has to go with the star action and its going to change. The. U. S. House democrats really set their report in the next chapter of the donald trump impeachment inquiry outlining claims the president abused his position for personal political gain. Nato leaders that gather in the u. K. To celebrate the military alliances 70th anniversary but while some hail its success others question its relevance today and. We are we have proving every day that is said on and says this is on trial it is active on its the neighboring mogul and even though it stands for. The u. S. President tries to force the hand of his french counterpart in support