Right lets not get top of cutting right lets not forget that the fed has been buying bonds again yet officials still insist that it was that the fed has been buying bonds again yet officials still insist that it was too stable as the funds were safe for water to fund raise for the for the full month rather than a few evil will keep doing well well that stabilizing was at a clip of 60000000000. 00 a month state which is almost as a was at a clip of 60000000000. 00 a month which is almost p. Q. Each year in the Great Recession and lets not forget the medieval pop in the greatest recession and lets not forget the repo populace still isnt over yet as there is a 130000000000. 00 revolving repos the syllabi bill isnt over yet as there is a 130000000000. 00 revolving repos the syllabi trying to reliquefy the Banking System every night the Central Banks banks trying to really liquefy the Banking System every night the Central Bank Balance sheet expanded by over 100000000000. 00 over the past month and is back above the 4 alan she expanded by over 100000000000. 00 over the past month and is back above the 4 trillion dollar mark if the economy were great why did we need this big the trillion dollar mark if the economy were great why did we need this big simulate Millicent Jackson action john injection of them are going to present up in march of market to prop it up. Chinese film tiny and he still knows she awake a group shall shit on one wrong group to fall for to read on 142000000. 00 most of my bonds left last week sparking counsellor and adept at conspire to do nothings that connected in the learn of the death page in a fat comic in the land reads in companies in the sand the subtle end product of an event well all more well known for now a programmer by providing didnt get care. And on t. V. s for each others job that is at the desk thats so this so this default now raises huge concerns that other privately owned enterprises may have the fallout now raises huge concerns that other privately owned enterprises may have been associated with she was cross guarantees among howden that many of us have the votes to take it with she was cross guarantees among the companies have the potential to cascade liquidity issues throughout the Credit System neighbor firms home general to cascade liquidity issues throughout the Credit System neighbor firms home child group and Sunshine Group bonds have both dropped to their lowest level after issue while group and son shane groups bonds have both dropped to their lowest level after she won default more Chinese Companies are defaulting on private bonds this year as a song default more Chinese Companies are defaulting on private bonds this year as a slowing economy weighs down on revenue the nations issues have missed 3 payments although economy weighs down on revenue the nations issues have missed repayments on 4400000000. 00 of private bond this year and beijing is now cautious of 4400000000 dollars of private bond this year and beijing is now cautious of large scale the falls and systemic risks. Chinas bond market has ballooned up to the large scale the faults and systemic risks chinas bond market has ballooned up to 13 trillion dollars almost as big as the amount outstanding elsewhere in the world 13 trillion dollars almost as big as the amount outstanding elsewhere in the world yielding negative Interest Rates. Building negative. Theres a ton to unpack here and to do so were joined by Richard Wolffe professor. Theres a ton to unpack here and to do so were joined by Richard WolffeProfessor Emeritus at the university of massachusetts amherst so professor of economics at the university of massachusetts amherst so professor well lets start 7 off with the news breaking within the wall flowers its stock spent with rate than a cup news breaking within the last few hours the latest sped rate cut by 21. 00 ready for change of buy 1. 21 rampage point one sign that backed who was so important is that empire percent so is there any way to read. All the labor that are to respond to the slowing economy comey other than a response to a slowing global economy. Yes i think there are many factors that are going into it. Yes i think there are many factors that are going into it we have this desired split we have a president and the political we have this bizarre that split we have a president and the political elite telling us that the economy is strong even mr powell said that and yet do it he telling us that the economy is strong even mr powell said that and yet doing the things you normally do when an economy is weak thats the 1st kind of confusing the things you normally do when an economy is weak thats the 1st kind of confusing piece of information but there are other reasons to cut Interest Rates for existing piece of information but there are other reasons to cut Interest Rates for example helping the republicans and mr trump get reelected will help the real cop on an applicant and mr trump get real meat that boosted by the economy thing but it by deeper than they can also get it cheap gutter going on diets also going off even though i mean the pedia even though the people playing the games will build the noni it i think theres a nickname important key factor we have a split. Actor in the other where we have a split because the real economy in another way theres the real economy where we where we go go to what are working we can we please produce the things and so on and then theres that one and then theres the paper a great column in qana me doing this the stock market what has been going on is that the economy underneath the one we ought market what has been going on is that the economy underneath the one we all live in is very mediocre i mean i read the other day that j. P. Or live in is very mediocre i mean i read the other day that j. P. Morgan chase is thinking of moving out of new york city to save money and the s. Morgan chase is thinking of moving out of the. York city to save money and the explanation was split may be share for the uns to preplan here go for the un and then go in the coming recession so there is this split between the real economy which is weak recession so there is this split between the real economy which is weak and the stock market which bush and the missing but heres the x. Model nation get that the Federal Reserve is booming but heres the explanation the Federal Reserve is pumping up the money supply you mentioned yourself correctly observe is pumping up the money supply you mentioned yourself correctly the quantitative easing disguised as stuff for the republicans and the little quantitative easing disguised as stuff for the republicans and now the lowering of Interest Rates what that does all ring of tarp money money to. Make it cheap what that does is pump up money make it cheap to borrow and you know when doing the borrowing people who play the stock market thats a borrow and you know were doing the borrowing people who play the stock market thats why the prices of the stocks have gone so much higher while the underlying economy why the prices of the stocks have gone so much higher while the underlying economy is so mediocre that is a very dangerous dichotomy and i is so mediocre that is a very dangerous dichotomy and i think we will look back on the feds action as a worrisome sign that there may think we will look back on the feds action as a worrisome sign that theyre more interested in keeping this bubble going then they are in confronting the more interested in keeping this bubble going then they are in confronting the underlying problems of this economy so 2 this is a very dangerous di canio underlying problems of this economy so 2 this is a very dangerous dichotomy so well. What happened in december if the fed given its very hawkish tongue this time doing so well what happened in december if the fed given its very hawkish tongue this time if they decide to not cut Interest Rates again and the markets disappointed. If they decide to not cut Interest Rates again and the markets disappointed what will happen i think is that its youre absolutely right the key question because i think is that its youre absolutely right to the key question because it would then suggest that the game of keeping the bubble going has it would then suggest that the game of keeping the bubble going has become too dangerous the Federal Reserve is not supposed to flood the money into this we come to dangerous the Federal Reserve is not supposed to flood the money into the system at this pace you know the joke of mr powell is remark to keep the expansion going thats not the job of the Federal Reserve every teacher know system at this pace you know the joke of mr powell is remark to keep the expansion going thats not the job of the Federal Reserve every teacher knows who teaches economics as ive done all my life you cut Interest Rates when the who teaches economics as ive done all my life you cut Interest Rates when the economy is weak not one its expanding you do that in the economy is weak not one of the its expanding you do that in the moment of expansion is when you raise all in of Interest Rates and the price masses when you raise Interest Rates to slow the process down on b. To build up the lines of can resign nerves of yield real hes a nerd need to get through a lot harder to get through our hard time the fed isnt doing that it is piling more money on top of more money time the fed isnt doing that it is piling more money on top of more money its nice why. Runs up but when it runs down watch out its nice and runs up but when it runs down watch out thats the thing to worry about so we also have in the 3rd quarter were poor thats the thing to worry about so we also have in the 3rd quarter were poor we see that the u. S. Economy grew at a rate of 1. 9 percent which as we previously stated outright we see that the u. S. Economy grew at a rate of 1. 9 percent which as we previously stated outpaced the expected 1. 6 percent rate but still well below where we were in q 2 the expected 1. 6 percent rate but still well below where we were in q 2 meanwhile Consumer Confidence has now fallen to a 4 month low so what do you take away meanwhile Consumer Confidence has now fallen to a 4 month low so what do you take away from these latest figures well i think lets put them together with the numbers from a few from these latest figures. Well i think thats put them together with the numbers from a few weeks ago indicating that the chinese economy was growing at about 6 percent or weeks ago indicating that the chinese economy was growing at about 6 percent which is the lowest it has been in a long time what youre seeing here and which is the lowest it has been in a long time what youre seeing here is that the trade war initiated by trump and the Republican Party is hurting is that the trade war initiated by trump and the Republican Party is hurting both Major Players the chinese in one hand and the United States in the other this is done mostly to get mr trump reelected but the costs were paid both Major Players the chinese in 1. 00 hand and the United States in the other this is done mostly to get mr trump reelected but the costs were paying on both sides are enormous thats why you have that bond the fog going on both sides are enormous thats why you had that bond the fall in china that worried people over the last couple of days and so on my guess in china that worried people over the last couple of days and so on my guess is that we are going to see a building rage and the anxiety is that we are going to see a building rage and anger at the economic costs that the world is asked to pay for a player at the economic costs that the world is asked to pay for a political struggle here inside the United States and again political struggle here inside the United States and again lets not lose sight in china the rate of growth was 6 percent this last lets not lose sight in china the rate of growth was 6 percent this last period in the United States 1. 9 percent for people who just period in the United States. 1. 9 percent for people who understand what that means the chinese economys growth understand what that means the chinese economys growth and the American Economy is in the ability to keep up is the most important and the American Economy is in the ability to keep up is the most important historical reality of todays numbers a lot of asset bubbles bubble historical reality of todays numbers a lot of asset bubbles bubbling up all around the world better keep your watch out its very worrisome professor richer were going up all around the world better keep your watch on its very worrisome professor Richard Wolffe at the university messages samaras thank you so much for being here. Thank you wolf at the university of massachusetts amherst thank you so much for being here. Thank you. Time now for a quick break but hang here because on the other side. Time now for a quick break but hang here because on the other side as cryptocurrency is continue to climb in the public consciousness governments are taking notes on how to move as cryptocurrency is continue to climb in the public conscious and governments are taking notes on how to move forward in the states joins us in studio after the break to talk about consumer szilard in the states joins us in studio after the break to talk about consumer safety in the field and much much more and as we go to break here are the numbers for close in the field and much much more and as we go to break here the numbers are close. All across the middle east. All across the middle east and beyond there are large scale protests a growing political ends. Ability in many countries and beyond there are large scale protests and growing political instability in many countries the old ways of doing business only in rich privileged elites while the prospects for the old ways of doing business only in rich privileged elites while the prospects for the many are few and far in between to the elites have answers to the many are few and far in between to the elites have answers. And. Need. Designer need. Slipstick its a. Full body of the systems that im. Selected its a. Small. A bill in co. Small. Fortune for the outnumbered a lot about a. Fortune for the outnumber a lot about a 1000000 and thats. More than that so. During the Great Depression which im old enough to remember that. During the Great Depression which im old enough to remember there was and most of my family were unemployed working class and it wasnt it was and most of my family were unemployed working class and it wasnt it was bed you know much worse subjectively than today but there was an expectation that things bed in a much worse subjectively than today but there was an expectation that things were going to get better. There was a real sense of hopefulness were going to get better. There was a real sense of hopefulness there isnt today todays america where shape by the turn principles there isnt today todays america where shape by the turn principles a concentration of wealth and power. Reduced amount concentration of wealth and power. Reduced democracy attack solid doubt in. Janiero elections. Attack solo doubt engineer elections manufacture consent and other principles according to no im joe manufacture consent and other principles according to no im jones to one set of rules for the rich office at least one set of rules for the rich offices. Thats what happens when you put her into the hands of. Thats what happens when you put her into the hands of a narrow sector of will switch will is dedicated to a narrow sector of will switch will is dedicated to increasing power for chills just as youd expect one of the most influential intellect preaching power for chills just as youd expect one of the most influential intellectuals of our time speaks about the modern civilization of america chose of our time speaks about the modern civilization of america. Well. You know. What. You mean what. You mean with. The. The Asia Pacific Economic cooperation summit set for mid november in santiago chile Pacific Economic cooperation summit set for mid november in santiago chile has been cancelled amid widespread protests in the nation the government was forced to extend being cancelled amid widespread protests in the nation the government was forced to extend a state of emergency to several cities last week as protests continue due to a proposed in a state of emergency to several cities last week as protests continue due to a proposed increase in Public Transportation fares and what they describe as economic inequality increase and Public Transportation fares and what they describe as economic inequality over the weekend mr pinera made concessions including an increase to minimum wage over the weekend mr pinera made concessions including an increase to minimum wage and raisi