Transcripts For RT Front Running 20240713

Owed to the government so that means that the government could wipe out all the student debt and it wouldnt hurt any creditor at all it could be wiped out without any disruption of the economy and in fact unless its wiped out the economy will be distorted because as steve cain just said if you have to pay a lot of money in student debt you cant afford to get a Bank Mortgage to buy a house of your own and theyre going to end up living with your parents you know awol dr Michael Hudson here according to moodys erasing student debt would be a small stimulus but would it create moral hazard moral however or has it but i wouldnt know what is the morrow if he had worked the moral hazard is if the rich families that can afford to send their kids to School Without an education would no longer be able to lord it over the families that are driven into poverty by student debt. The moral hazard is that there wouldnt be a polarizing economy between an oligarchy at the top and a democracy at the bottom thats the moral hazard according to the l. Ike archaean according to the neo liberals and the printing of back to the sub prime crisis movies unless very much responsible for that now randi you of course. Have been involved with your bernie delegate back in 2016 tell us what bernie thinks of sit it out what his plan is and how that relates to the his hes very popular with the generation z. And the money obviously is very popular because this is one of the single biggest issues holding that generation down and his plan is simply to wipe out all the student debt and then come back later and lower the Interest Rate to below 2 percent i think 1. 8 percent right now the rates are between 4 and 7 and i dont really know i didnt have student at either c. C. I dont really know what happens when you default but i do know anecdotally that when youre paying your taxes and you think youre going to get your stimulus as a refund the i. R. S. Collects for us student debt. So i know that his plan and these are policy stacy when my parents met at u. C. Berkeley in 1960 it was free to go to berkeley and you paid for incidentals now its 13000 dollars if youre in state and 40000. 00 out of state these are actual policies made by people in government that decide as roberson but whos going to a what and why would 3 universities well they would just before i started but they were trivial relative to the costs today because the bureaucracy in universities was trivial the head of to pop and my predecessor effectively would have a meeting with the vice chancellor and talk about the budget that was needed and abuse cost of a lunch and that was the end of the discussion now listen and todd bureaucracy involved in doing that so a huge part of the increase in cost of universities has not the money going to the academics or the citys facilities for students. Its this enormous bureaucracy which is part of this whole student it the whole overload then what is that thats neoliberalism get it instead of believing you should managers make things work better you need managers to like it it makes what can do but also these universities are acting like gatekeepers there are small number of jobs where you can make the elite type of Mega Millions and folks are willing to pay i went to n. Y. U. Back in the seventys and eightys i was shocked to find out that tuitions out over 50000 a year so you really cant afford that much and even youve got celebrities in hollywood folks adding another to 300000 in bribes to get into a university is going to cost 2. 00 or 300000. 00 to begin with because they want to get the job at the top of the Banking System but the bank of the ponzi scheme the financialization straightest enormous bodies game if you want access to be at the top of the pond youve got to go through the ivy league youve got to go deep into debt youve gotta pay another huge bribe and that just disenfranchises so many millions of people that wont have any access and also the whole point of university is not education anymore they are acting as gatekeepers to the elite oligarch attentional is and i mean i had students tell me theres only a university to get a job originally my father was a universe to get an education and if you make good old credentialism you end up devaluing the quality of the education itself so in that with a list genuinely educated workforce and the caliber of the teaching that joining this whole period of increasing costs the student to Software Issue has been fooling this list off teaching theres more mocking a load everything is being will make a knowledge of the personal contact is declined so rather than this increase in cost reflecting increase in important quality its actually a degradation of that and just a huge bureaucratic wire over the top well the result of what these talking about is theres been a whole trains in the shape of the how much education adds to your earning power it used to be the more education you go up to the. Ph d. The more you learn but know thats been reversed certainly in my field economics once you have a ph d. In economics youre so brainwashed with the vision that the only thing you can do is teach but the universities in order to pay all this money to the administration overhead that steve pointed to they want to hire part timers to teach you can only get an edge on professorship for maybe 3000. 00 a cord so the higher your education the less qualified you are to actually work in the real world especially in economics one anecdotal point is i have some Close Friends that were really happy that their daughter got into a very Prestigious School in boston and i asked how theyre going to pay for it was 70000. 00 and they had saved and they had money and she was going to get loans and i asked him point blank based on what she wanted to study i said why dont you just buy her a house in las vegas where you live for 280000. 00 and give her the house and centers of Community College shell have an asset with no debt shell live there and get a skill its a good question meant when youre spending 70000 a year and she would emerge she may not have debt but others could come out of there with 1150000. 00 a sound 5 guys burger chain has started the dad said i can send you to college or i can start some business together they started 5 guys burgers now theyre all going to florida by University Getting back to what max the saying about the gatekeepers the problem doesnt just begin with tell it it begins in kindergarten here in new york city it costs more to go to kindergarten and grade school but this does go to college and in fact you remember in the stock market crisis when the citi bank was having a fraudulent stock broker the deal with the stock broker is we will get your daughter into kindergarten if you give a good stock Market Report here and that. The weeding out process begins already in grade school to go to a school that can get you in to the. Coed so it really is a right of terri aristocracy thats emerging were talking about i knew you were going to say this because thats why i wore my kindergarten outfit. Because i thought this was going to come up in fact weve had this scandal as well not only do we have the celebrities and the powerful people apparently paying bribes to get their children into these schools which shows you that even though they have this huge wealth that the importance of getting that degree from a particular university regardless of what you actually learn at university is so important now in our economy and we have the hereditary issue is Something Like 40 percent like a huge percentage especially white americans at harvard are you know certain select universities are actually children of families that are powerful or when theyre this is the definition of like an aristocracy or all the darky that is being entrenched in this economy right didnt the universities were and libraries are built by the rich to give back now the pendulum has swung the other way theyre using them to ossify calcify their place as the elites by saying these job ridges that once you get over the bridge they pull it up and everyone else is left adrift right so if there are no Public Institutions then there is no Public Domain and there is no common good and we have not escaped the monarchies of europe and we brought back a central bank whats the difference now between you know where we were 200 years ago before we even bother with the declaration of independence of the insulation i mean thats thats the point is should we actually be charging for education because this is we charge for things is because its been a benefit to the person whos buying it and thats the audiology took over education about 30 or 40 years ago but the perspective of education was originally that education is a benefit for society in general i wouldnt want to live in a Society Without doctors or engineers. What happened even without economists. Saying it of being a private benefit ignoring the public means that ignoring that the skilled need for a Sophisticated Society and putting the burden of that skill isis on the individuals and what were trying to do into it is just now the China Institution of Higher Education become a form a version of a real estate scam that is not the basis for a functional society were going to be back after the break so you can go to school on us right after this. In the troubled 19 seventies a group of killers rampage through parts of Northern Ireland that was coordinated loyalists attacks on the population of tens of thousands were forced to flee their homes come up with stray can put these attacks was a p. R. You see the Police Actually took part in the attacks so instead of preventing it they were active participants in the burning of schools streets in belfast. More than 100. 00 innocent civilians when the 3 of you can seniors and we found out more i was surprised about the extent and its occurrence which the inclusion was involved in some of those cases the killers would lead to be named to the beginning i think it went to the very very top i think it the food. The water where all the taste and you know on the go ahead. Thousands of american men and women choose to sin of in their countrys military a decision that has shattered lives every. Day and im afraid to be instructive here. You know oldish what they kill me and i see how it destroyed my life any screamed at me and he made me come in and he grabbed my arm and he write me. If you take into account that women dont report because of the extreme retaliation and its probably somewhere near about half a 1000000 women have now been sexually assaulted in the us military rape is a very very traumatizing have happened but ive never seen trauma like ive seen women who are veterans who have suffered military sexual trauma reporting rape is more likely to get the victim punished of the offender and almost 10 year career which shows very invested in and i gave a sex offender who was not even put to justice or put on the registry this is simply an issue of our and violent male sexual predators for the large part of target whoever is there to prey upon whether thats a man or woman. You know we talk a lot on the show many years about economy and currencies and what makes a currency usually what makes a currency is scarcity for example gold is a currency its money because its scarce thats the primary reason people use it as money keynesian economics or socialism is usually a workable because the people who are organizing it think that well you can just print all the money you need you need a program print more money theres socialism for banks on wall street as was pointed out recently one of the big president ial debates you know a bank gets in trouble just print more money well whats the ultimate scarce commodity what is the ultimate scarce commodity you think about it what is the ultimate scarce commodity. Welcome back to front running 2020 with max kaiser and stacy before the break we were talking about 1. 00 trillion dollars in student debt and we left off on this idea of competitive stacey yes germany has Free Education america has expensive education and yet it seems that germany is out competing us steve keen basically risen because youre not relying upon the students for so they get into university but to get a good mark youve got to be an intelligent person to get and not a model well see want to want somebody whos borrowed money consequently you can afford as an academic to file the students if they dont do addition job whereas if you try to file students with a pocket i think they have boarded and they deserve to get what they paid for which is a degree and that is that subverts the whole purpose of education of experiences over a 30 year 40 year period in academia and ive seen the quality of the capacity to file bad students simply collapse so what is happening universe is graduating people with credentials but not in education but the fact is we do have a problem with household formation it is at a record low and a lot of this many economists say is because of the student debt so when people argue against forgiving this debt and remember Elizabeth Warren and Bernie Sanders definitely want to forgive this debt but the argument against it is like it will create the moral hazard and all these other people paid and they worked hard to pay and why should we forgive these debts which is better for the economy however that those debts get made whole and that they pay theyre paid off or household formation how important is household formation to an economy you have to put it in the context of how competitive the economy is in terms of how many jobs it has in the 1st place no take the case of germany where steve mentioned if you dont. Can go to school and dont have to pay tuition that means that you can afford if youre a doctor to provide medical services or an engineer to provide Engineering Services or you can afford to work for a income that does not require you to add on a payment of student debt in america if you graduate with for a deficit of 300000. 00 of student debt from n. Y. U. Is a dental school youre not going to be able to afford to take most jobs that dont pay enough to pay the student debt so youre going to default now so the real question about moral hazard is it worth polarizing the economy and impoverishing the whole class just for the principle that all debts can be repaid when a steven i say we know the debts cant be paid me and then the way to follow this false dream that somehow the economy can afford to pay its debts and somehow the rich people deserve to impoverish the 99 percent of the economy this further and further and that the real moral issue is should the 99 percent be indebted for student debt mortgage stepped. All the other forms of debt to the one percent that thats the moral issue and should america give up its hope for competitive economy just to make students pay for a loan so that you can afford to have the rich families monopolize education and lock out families that cannot afford the 40000. 00 that it takes to get into kindergarten in the american. Way you also have as weve mentioned earlier that tuitions have gone up there is that the tuition prices for their private University Public universe a Public University is a pyre and these are wages wages of state but the wages if you do the wages of professors theyve gone down and down and down because they can only get part time jobs as professors so the professors jobs are going down the hall the university because theyre. Our time is right the universe they call for going up because their office a big bureaucracy is what i think of as the neo liberalism and neo liberalism seems to have really come in after we went off the Gold Standard you can create all sorts of money could create all sorts of day credit and the boomers were 1st then were not saying theyre horrible people they were lucky they got to be the 1st one on this near mit scheme and now there is a battle there is a reconciliation to be made that the millennial are stuck with these huge debts and how is this going to resolve itself its going to resolve itself through revolution as bernie says our revolution or its going to resolve itself at the ballot box and i think that as more people get fed up and they get interested in casting their ballot on these issues that are basic issues and im indebted to the one percent and im basically working a dead end job ive done radio shows where people call in and said i did the bear can dream i got 2 degrees you know i went to school and im up to my eyeballs in debt and i get paid less than 40000. 00 dollars d a year in wake county North Carolina ill never be out of debt and yet they did what they were told to do this will be resolved at the ballot box and thats exactly why bernie is incredibly popular with millennialism jonesy its a contrast to prochoice or sanders wants to make college for a while Elizabeth Warren has proposed a billionaires tax that she said would pay to eliminate up to 50000. 00 and education loans are either of those viable is there any difference between those 2 how would you characterize the if you went that we said before nobody has to suffer the government doesnt need the money the government either can print the money or it can raise the taxes a large part of the problem arise from people saying we have to pay for things like education using taxes and thats a benefit but on the state lets impose a burden on the individuals who are benefiting from education instead the. The opening thesis is wrong it is the government has to tax in the order to be able to be spent just band and part of what is called modern monetary theory which is a major factor in this to be election probably for the 1st time ever. The progressive economic theory is part of the political divide makes the point that governments actually spend before they tax governments by spending part of the money that enables the private sector to function now if the government tries to tax more than it spins that means its actually taking more money out of private Bank Accounts and its putting into them. Which means youre reducing the amount of money that actually makes the economy operate in fact the government is the only institution in society which can manage to spend more than it get this back in income because it owns its own bank now that means it should actually be spending more than it gets back its actually a sensible thing within reason for it to do i have a history americas government has spent 2. 4 percent of g. D. P. More than its taken in tax every year on average for the last 120 years i would rather have a do that by funding education than funding it bureaucrats in Education Funding bombing other countries so in terms of a wide government actually creating the money creating it by financing education is a much better way to do it than virtually any office and thats why it should be funded by the by bernies scheme of the government simply paying for education and the tax this is very important because it clears up a widespread misinterpretation that Vice President biden. Contributed more than anyone else to he said unlike all other forms of debt student debt cannot be forgiven cannot be wiped out by bankruptcy because its owed to the government and we dont want the taxpayers to loose a penny but modern monetary theory that steve and i both believe in the fact is wait a minute taxpayers wont lose a penny if you wipe out all the student that because the government will fund the same way it funds the bail out the some way it fund. Or the military industrial pro process that will simply. Print the money it doesnt need the money so all biden did was put in a very nasty thing were going to make students that are not born rich are going to really suffer because when they cant pay they cannot use bankruptcy that all the rest of the population can use its this one of the most perths arguments made in american politics just to clarify it was Vice President biden as a senator who introduced the bankruptcy reform which actually made it very difficult to sit discharge many debts but impossible almost impossible to discharge student debt. Read 19 eightyfour and he knew what double think. Financial gerrymandering. Politically parsing they decide in ways for political gain you know and the thing is about this case in market and again referring back to n. Y. U. Its really a Property Development firm disguised as a university the Property Development is enormously profitable all because the way students are crammed and professors are underpaid and the people who run New York University are Property Developers like a trump who are fabulous the wealthy disguised as an institution of education thats clearly not whats going on yes youre exactly right max this is whats going on with Charter Schools and even in Higher Education what they do is they own the real estate and they lease it back and sometimes its 2 separate organizations but its controlled by the same group just just how mcdonalds made a lot of money owning the real estate you have a franchisee there doing the same scheme with some of these real with some of the real estate in Higher Education or Public Schools with k. Through 12 and ultimately what its doing is creating more debt its creating a lot of wealth for the one percent as rob was talking about but its not producing an educated workforce its a huge devalued education dramatically of my 2. Here is a professor the whole idea that we should be able to bondage is a fallacy you should be posturing in education you should achieve a standard which means youve got got the skill set you want to stand the technology you understand the philosophy whatever is involved your discipline thats what should be the and instead thats completely gone away with this in christian student it is going to degradation of the call that you have education and we should get rid of it and go back to the dyes it was provided by the state but it was difficult to get in you need to get good marks and be intelligent to get into the pit you get a little bit of education you need to study hard but bring it back to germany germany has apprenticeship same programs we dont have that part of it is this neoliberal economy got to be like a celebrity kind of a doing nothing mckinsey ask sort of think tank or so is that it was how do we even bring back vocational schools though if we dont even have in an industrial capitalism here anymore Michael Hudson well you may have mentioned china also where you have the confucian system where you have to take tests in order to get into the university and the people who get in are the people who do the best in tests so again were having a whole international divide were having that part of the world where people d get an education on the basis of merit and intelligence and here where people get education in proportion to that well how much wealth theyve inherited from their family and which of their ancestors have gone to the most Prestigious Schools so that they get a legacy they were having a bifurcated economy here that is the exact opposite of what the more successful economies are doing and these successful economies have much lower costs of exit they can afford to compete because they dont have this overhead of a sort of little. Aristocracy right so student debt cancellation is that a winning vote getter yes or no dice rather than absolutely yes because the student camp pay the debt its a bad loan came in a winning day idea and itll make the economy and the saw. The better for it brandy bowl or yes i agree it is and its actually going to turn out a huge amount of vote for Bernie Sanders well thats going to do it for this edition of frontline 2020 with a mask guys reinstate by the way i giving it all straight. All right great inflation until next. Should we have had a much better 17 years could we could have had a much more prosperous iraq a stable iraq yes i was there. Mistakes happen absolutely. Things about my father they could have done they should have made it but so does not take away from the flag i was stood up to around the dictator who loves thirsty and he participated in the murder and killing of hundreds of thousands of iraqis are millions of more of the around then the invasion of kuwait. In the troubled 19 seventies a group of killers rampage through parts of Northern Ireland that was coordinated loyalists attacks particularly catholic population in belfast tens of thousands were forced to flee their homes a mob was striking to put these attacks was a p. R. You see the Police Actually took part in the attacks so instead of preventing them they were active participants in the burning of coal streets in belfast at that craig more than a 100 innocent civilians when ludovic as the review can seniors and we found out more i was surprised about the extent and of the currents which the inclusion was involved in some of those cases that killers would later be named into the nanny gang i think it went to the very very top i think it was frosts the water where politicians you thought was going on and give the go ahead. And have a 7th is later systematics know how that is not for this matter that there. Are no human or clerestory care. Actually an area where. There is no no no not. In a way at all of them ok if there. Was not a master plan a kill with a battle they are late for would have a good watch that would allow that to be. The military. Even. If the needed not. What the how they were not allowed the assume. One in a and not those they need the whole corps to go before. Well not a whole. Lot of money. For employees from Russia Sputnik news agency in turkey have been released they were detained earlier in the day and taken in for questioning. The News Greek Police clash with migrants at the Turkish Border after ankara gives the green light to Asylum Seekers hoping to reach new being union in an apparent bid to pressured nato into supporting its offensive in seriously that. Long with jim in a song that his supporters were the 1st face of the u. S. Extradition case now complete in the hearings that were getting founder was kept in a glass cage denied the opportunity to interact with his lawyers we heard from one of them. Couldnt take part in the Court Process this is inconceivable how can a person be in Court Without being