Next hour right now though it is the kaiser report stay with us. Hi there im max kaiser this is the kaiser report you know the stock market as a subset of the economy has undergone a transformation and become the plaything for speculators fueled by incredibly egregious money printing by a rogue central bank and this is causing all manner of dislocations mal investments in societal changes for more lets turn to Stacy Herbert hey well you know what something that you predicted would happen is happening and its coming true billionaires lining up to take their companies private so what will robin her dish trade when everything has been l b. Right so as weve been saying on the show for a number of years all this money printing in the strategy of Companies Taking themselves private or buying back their own shares with the 0 percent Interest Rate would end up with a economy and a stock market that doesnt exist anymore because its all been taken private remember during the 1980 s. Michael milken introduced the revelation in the revolution in leveraged buyouts the l. B. O. They borrowed money they acquired companies they sold off fast as they kept a difference and they made many many billionaires the 1st huge wave of billionaires in America Thanks to Jackson Burnham mike milken in the leveraged buyout down 2020 weve got the endgame every Single Company is a private equity firm Berkshire Hathaways a private equity firm all hedge funds are private equity firms all private equity firms or private equity firms are all borrowing money and 0 percent Interest Rate theyre all taking all the pieces off the board every house and house sell the monopoly board called americas being bought in taken private and not available to trade by the robin hood traders just look at a chart of the number of shares outstanding for Apple Computer ok that shows shares outstanding going straight down in told there wont be any shares outstanding. Itll be a private company at 0 percent Interest Rates so well be back to priest 1602 when all the wealth was in the hands of a few people and you know after 1602 when we had public stock markets and not only was it did reduce risk for individual very wealthy people but the ship would go down and everything would be lost. But it did wide in the scope of the middle class and the wealth of one in class so that could be gone soon right the 60 not to date is an important day of course it also kind of is the transition from feudalism in medieval into the modern capitalism and when you take all these things private and it all goes back to the hands of a few plutocrats then youre going back to Medieval Times a week call here neo feudalism ray and whats left for the robin hood app traders is a smaller and smaller chunk of junky Companies Really that you get junk and scams its like they are in the crypto markets when all these i. C. A. O. Isnt all queens are listed for those who dont own because they dont have you know ability or have you know they feel like cheated that they didnt get any bitcoin and then they jump into all points well here is that like the similar happening in Public Markets nicola the company kind of based on tesla you know with these electric trucks is estimated to earn 30000. 00 in revenue for the 3rd quarter down from 36000 dollars and the 2nd quarter it has a market cap of 12600000000. 00 this is 2020 well what people are trading now are means as ive said before that subtle is mostly valued as a like to fail the fraud was a huge mame that changed the outcome of the 2016 president ial election tesla is mostly value. As he mean its a concept elon musk is a cartoon character that is a brilliant marketer and a brilliant engineer but his company is not what 400000000000. 00 but as a mean it is worth 400 1000000000. 00 and what nicole other car company realizes that they could out me me tesla as a me and they introduced their mean like company on to the exchange General Motors was poised to buy this me because Everyone Wants to be in the mean business because just like 20 years ago 30 years ago during the age of financialization every company wanted to be in the financial ization business so Drug Companies Car Companies Manufacturing Companies started to trade derivatives and make more money on their cash desk than they were making with the actual product that was listed as their primary source of revenue that all changed now youre going from financialization to mean if occasion and that is part of the neo feudal ization because all the equity has essentially been stolen and i knew you know when i established the Hollywood Stock Exchange back in 1906 that you could make a huge market trading nothing but means and also that disproves a misers regression 0 that was disproved by my invention in 1906 but nevertheless here we are in 2020 and its means all the way down well you know we started with the headline that companies are taking themselves private eye theyre skipping the private equity right theyre hollowing out their company and bankrupting their pension before the private equity can do so what is private equity do because private equity of course likes to hollow out and swap debt for equity its like extract your equity and leave you with debt so in this situation of the wall theyve created theyve created this trickle down of scammer e re and predatory behavior well americas largest landlord to make 550000000. 00 bet on trailer parks a decade ago Blackstone Group became americas largest landlord purchasing tens of thousands of Single Family homes. During the foreclosure crisis now the private equity firm has spotted the next big opportunity as the virus induced recession crushes the working poor that is betting on mobile home parks so i just want to point out here a difference between this old crumbling economy this fiacha dark ages that were possibly exiting and entering a new orange pill sort of future reality of a more fair and just Economic System of the queen is here is this Group Blackstone betting that the situations going to get washed for you 550000000. 00 there are look theyre betting because they know because you know these guys running blackstone are close to all the policy makers and they know what policies are in store for you and theyre betting that its going to get bad for the ordinary person whereas if you look at another publicly listed company micro strategy and were going to be interviewing the c. E. O. Next week hes poured about the same close to the same relative you know 450000000. 00 into big coin so hes making a positive bet on your future whereas this guy Blackstone Stephens Stefan Schwartzman theyre making a bet that its going to get worse for you my interpretation of this headline right Michael Saylor this company micro strategy is their purchase of approximately 450000000. 00 of the big coin the 3rd approximately of their cash or i should say the market capitalization of the company is that represented a 3rd by bitcoin this is an incredibly important and seminal moment in the history of finance in america and bitcoin not tell you why up until now the entire strategy has been dont fight the fed and used the cheap money to buy back your own stock all the stock gains particularly in Apple Computer have been generated by buying back their own stock and its made of possible through those 0 percent Interest Rates. From the fed what Michael Saylor news team at micro strategies are saying is that wait a minute were not going to use that 0 percent money to buy back our own stock and give ourselves huge bonuses were going to protect ourselves against all that money printing. And were going to buy bitcoin so this is a sea change this is an Inflection Point this is like steve jobs introducing the smartphone this is incredibly important moment in the history of finance nobody on wall street understands this this company only has 2 analysts on wall street and they have very scant coverage because its kind of a Small Cap Company its worth less than 2000000000. 00 a thats growing now but once this sinks in that companies in Corporate America is no longer taking advantage of the fed but needs to protect themselves from the fed being the key Apple Computer has got hundreds of billions of dollars in cash then they do the numbers they crunch the numbers and they say you know what micro strategies and Michael Taylor is correct we need exposure typically ok now because ends at 5060701000 extension 00 dollars a going going a lot higher yes Michael Saylor we are going to interview him next week here on kaiser report Michael Saylor of micro strategy and i want to say you know going on with this theme that youre blackstone very well connected kings of fi outs kings of the Economic System and the constant bailout from the fed theyre betting that neo feudalism as we call it will continue and it will get worse this is their bet theyve bet on that that youre going to be living in a double wide sand right the trailer park business i predict that they will give you the chair of the park for free as long as you stay in there and click on ads for social media its like click on answers you know facebook stay on facebook and well give you a free trailer park thats the model Going Forward its called the casino gold act and so here is another headline looking at where the ordinary person as blackstones betting against you that they used to turn to the government for some sort of help and. But what youre going to get is no Government Intervention and youre going to get instead continuing central bank intervent. And that central bank interfaith vention well cause inflation so here is what we see at a singapore ok why the hope for a solution to out of control government debts wont work this time rapid growth is no longer possible and inflation is not going to be tolerated in societies with slow wage growth head of central bank of singapore it has been said out loud it has been said out loud now theyre speaking honestly at least some people are some of the truth is trickling through and we you know in response to this Us National Debt climbing climbing climbing he also says rising inflation and High Economic growth works during the decades after the 2nd world war in bringing down debt levels and highly indebted countries such as the us but it wont work this time said carmen shanmuga garbutt men a senior minister in the singapore cabinet chairman of the Monetary Authority of Singapore Singapore central bank and deputy chairman of the government of Singapore Investment Corporation Singapore Sovereign Wealth Fund he was speaking at the opening day of the virtual singapore summit so there was just a Virtual Conference and the head of the central bank of singapore said that the debts are out of control governments cant spend any more because they cant cause the inflation because people are on conley low wage jobs so you know he looks back at the war world war 2 and he sees that this seems to be the plan for all these governments is like hey lets cause huge inflation thatll just inflate away or debts like we all these economies came out of world war 2 with huge debts and they inflated away but wages were increasing as fast as inflation back at that time they dont increase now because feudalism they dont have any choice like is amazon going to increase wages now right they have monopsony power they control them the labor market as does walmart so us. National debt spiked by 4. 00 trillion dollars in one year and now totals 26. 00 charlie and so. These fine days back here when it was under oh is only like 15 trillion now its 27 chilly and that was like when it was still early in its 1st 2 years it was way back there and now its way up there but another huge Inflection Point as the central bank of singapore is pointing out and then what hes saying is that the global g. D. P. Is roughly 100. 00 trillion dollars and the amount of assets bought by these top Central Banks around the world is approaching 100. 00 trillion dollars and going over a 100 trillion dollars what so imagine this youre pouring water into a bucket and the water is filling the bucket and then at some point it reaches the top of lip of the bucket in a starts to cope or out of the pocket and thats what were at now another Inflection Point you there is no capacity for earth economy to carry anymore debt were at the saturation point now every dollar that the Central Banks print will go directly into Consumer Price index inflation is going to see it at the Cash Register immediately and thats going to cause incredible social unrest in singapore as a comma country with very little social unrest and its a very different type of political system in companies countries like the us however oh boy well in the last minute we have here i do want to say again were coming up to an election we have this system where some of the elites led by sound are betting on more neo feudalism that this is the future for you that there will be no more spending there will be no more that its not possible to rack up any more debt and thats going to have consequences for these generations e. And millennial theyre already out in the streets protesting and. What they have designed for you is the gulag of these mobile homes this is they are free sure theyre building for you they think theyre going to be happy with that i reckon its not going to be like that and some people are betting on a positive outcome for you like this company micro strategy theyre betting that its going to be better for you because there is this alternative financial monetary an Economic System and global unit of accounts and settlements layer that trade might be become fairer that manufacturing might return all the sort of things that are going to happen with a lower time preference that trumps this time preference under which weve lived in which neo feudalism appears to be the outcome absolutely wild and were at that Inflection Point is really important awake in the history of back going micro strategies the stock market the fed and because they now go like ok were going to take a break and when we come back once mark on your way. Kind of calendar is drawing our forms over a long very hard theres cherishing page dard. Whose 1st words were out of our senior a choice the post you go to used to. Walk the script in. The sense concentrate market is a 1000000000. 00 industry these companies how does huge financial motivation to solve these problems there are numerous stocks showing doctors who are keen to chest x. Ray concentrates for the insights of its own that patients wont give them doctors the raunch to play. The star wars. Youre going to secure those years day. And people still die and im always question michelle being allowed to live where so many have. The big. Shots seemed wrong. When old rules just dont hold. Any old belief yet to shape our disdain becomes to advocate and engagement equals betrayal. When so many find themselves worlds apart we choose to look for common ground. Room welcome back to the kaiser report im max keiser time and return to our conversation with dr michael hyde sand author and economist dr Michael Hudson a while come back good to be back all right etaoin were talking about our friend our mutual friend david graber who sadly left us recently and you know one of the other things he was writing about is the kind of the predominance of what he called be asked jobs you know jobs are just busy work that are not really necessary now under this lockdown globally work from home has been taken often but apparently it seems a very few jobs are actually essential a kind of proved this thesis and oh well a lot of ways what do you think. Oh certainly thats the case in academic every university that i hear oh say they noticed that the employment by universities the professors fully employed had been going down and down but the bureaucracy the deans and the managers in the some managers and the assistants some managers have all been growing more and more income has been paid to the University President s the deans their administrative staff. And theyre paid for squeezing more incoming work out of the professors so they figured well that we can make more income for ourselves. Hiring only part timers who get maybe 3000. 00 to corsons instead of 70000. 00 or under those through professors so you have really the university in academia being turned into a kind of managerial set. Ups but i think what david was really talking about was not simply a socially unnecessary. But jobs that are are are unnecessary but are just made really really unpleasant by having efficiency experts mainly Financial Planners come in and say how much can we squeeze out of the workers say in amazon warehouses how can we make them work faster and faster they cant just walk from one. Dock to another to pick up something to put the package they have to run to put in a package how do we speed up the production line when it all ends up working like Charlie Chaplins modern times where hes trying to keep up with the machine going faster and faster so you have this rise in productivity that should enable people to be more and more relaxed and have more and more enjoyment out of the charms and then more and more creativity when they can think what theyre doing or even at least relax if its a really boring job like putting books in a package but instead theyre just squeezing everything out and theyre the demise of labor unions in the United States and the idea of squeezing out as much money as you can by leaving the financial. The private Capital Industry to take over companies and then just essentially strip them. Squeeze out labor i think thats part of the determination of labor in modern times you know with all this money printing going on during the crisis the cava crisis a lot of people are asking why do we pay taxes you know why dont you know this obvious they can print trillions on a whim why why do we pay taxes what why why do we pay taxes dr Michael Hudson for. We really dont need to pay taxes we pay taxes because the Financial Sector and the banks do not want the government to simply create the money on its own print press we pay taxes as a way of keeping down labor of texas labor and industry we dont tax real estate we hardly tax finance at all and we dont tax monopolies were large enough to have offshore Banking Centers to where they dont pay taxes we pay taxes so that one percent can push the whole tax burden on to the 99 percent and prevent it from rising in the economy which prevented from having economic power that it might turn into the political power to make productivity hocus own Living Standards in whole society instead of hoping the one percent to make society worse and worse right and we should mention that this term 99 percent and one percent came out of the occupy wall street and david graber coined yeah. Basically thought up by. The phrase and it took off i mean i think it he mentioned it you know you never know when a simple phrase is going to just sort of take off better than it really is is what it was and but of course then we found out it was a 0 point one percent more than the one percent but he rounded off the one percent right now american incomes have sort thanks to the enhanced Unemployment Benefits and stimulus checks 20 percent of the population saw their income double many have been paying down their debts so is this a kind of a debt jubilee what are your thinking on this well lets put it this way. Every economy reaches a point where Economic Activity is interrupted like its being interrupted today now we know that low surplus economies like schumer and babylonians couldnt afford to have. Everybody fall into bondage when their Economic Activity was interrupted so normally you have the laws of hamurabi that introduce the concept of an act of god when something occurs from outside the normal economy again and that prevents people from paying their debts or paying their rents then. Then rather than have them fall into bondage rather than have them lose their land rather than have lose their their homes and a sense really lose their livelihoods you say ok nothing nobody has to pay rents and best until Economic Activity resumes to be normal and also the hammer obvious said well if a business has a Business Interruption or youre a trader and youre a ship or and youre pirates robbing you dont have to pay the creditor its the creditor after after sharing the loss of your caravan and your rug by robbers and you dont have to pay. The creditors have to share in the loss of the debtors otherwise youre going to have society polarized well thats not thats not todays law were following roman law and that is if there is an act of god and you cant pay the rent then you lose your home and your better be and youre homeless you lose your savings your lose whatever property you have and that is essentially it happened again and again and antiquity and thats what rome had 5 centuries of revolution about saying you know cancel it thats give us back the land. And it didnt work. The one percent was there and it looks like the one percent is. Going to win today and right now all of the rents that havent been paid for for 5 months all of the deaths that havent been paid are accumulating and theyre all going to fall due in november or december right after the election and all of a sudden theres going to be a wave of the fall of bankruptcies and a social dislocation that will be larger than that i think 30 years because in the 1930 s. At least most people couldnt run into debt except for housing debt because nobody would lend to poor people but today everybody is in debt and everybodys in danger of losing whatever theyve gained in the last few decades michael you wrote the book super imperialism what do you think about banning while weighing the 5 g. Technology whats going on there its very hard to see what will happen because china. Has made such a large proportion of essential Information Technology goods that if they they stop the trade there than china will say ok. We wont use yours and you wont use ours american americans will lose the china market and if they lose the china market thats going to exacerbate the the depression here the real fight is over what is your going to do right now in europe european governments are sort of a subordinate to nato and theyre basically nato. Proxies and the question is whether china is going to have its so Carrier Technology used by europe and europe eurasia will be using a. Fish and hyper low priced technology or whether the american monopoly is going to. Europe buy our high priced gas instead of a low priced or russian gas by our high priced technology but most of all we we want europe to use Information Technology that has our spy systems part of it and the chinese system isnt a system that the National Security agency gets the read all of your email and so americas furious it says we cannot have the insecurity of not being able to read everybodys email and if you used Chinese Technology then were not able to spot i on americans that makes us feel very insecure and we cant even spy any europeans that used Chinese Technology and for all we know the europeans might do something that we dont like. It would be the end of the end forests my head is spinning but we must go to break i cant report dr Michael Hudson. Always good to be here all right thats going to do it for this edition of kaiser a part with me Max Kaiser Stacy ever like to thank our guests dr Michael Hudson until next time by. We are segregated. By social class. People also in poverty by 1st name if youre born into a poor family off youre born into a minority family if youre born into a family that only has a single parent that really constrains your life chances people die on average 15 years old if youre born into generational poverty. Its a tough tough fight every day to meet your needs and the needs of your family. Will come to everyone to this special. Friends of troubles here for the burial of steve dont. We same say only time it remains hope. Community as interfering will. Hold and we always i we will start reaching our grace both. Of us
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