Vigilante and im the austin economist and we meet and 42nd street and do you blow me away with your 45 magnum debt equalizer or do we have a discussion about this well i say theres a basic principle of debt that a debt is only valid if you make if the debtor can repay it but if of a lender makes alone without any idea how the debtor can repay it then the loan is considered a fraudulent loan so i would define fraud and begin of a large debt write down also a secretary of the treasury i would be in charge of text policy and id minimize housing prices id roll them back down by basically taxing the Capital Gains of land so that when value gains if you would tax the speculative gains and land the under and income not the building but the land youd. Nobody could borrow from the banks to inflate housing prices so id end the asset Price Inflation of real estate and b. S. The Price Inflation of corporations and basically restructure the economy in the way that it could afford to handle good debts and id get rid of the bed. Most people actually out there are watching now would believe because of propaganda pushed on cable news and by politicians that if you did your 1st order of business as us treasury secretary of arresting bankers and charging them for their crimes that it would crash the economy and the reason why they think that would happen is because they believe i think youll probably say falsely that bankers lend to businesses and help entrepreneurs and help the startup economy but what they perhaps dont realize is that up to 85 percent of all bank lending is actually property speculation thats right but its the bankers that have already crashed the economy since 2008 thats why the economy has not grown in 12 years because the banks of been bailed out not the real economy so i would put the real economy 1st main street not wall street that simple and applying the law all you would crash would be to roll back the immense amount of Capital Gains stock market and bond market gains that have been made in the in the last 12 years without the bankers doing anything at all its all been created by the government you understand how banks work you understand how the fed works how the treasury works is it possible for a policy to be enacted that selectively raises only the margin rate that is the rate that speculators is to borrow to speculate with in other words you wouldnt change this. Rate it would change the prime rate youre only waiting the margin rate which would apply to speculators can you selectively just raise that rate as a way to taper speculation this proposal has been made for the last 60 years since i was in school it was being made of course you can have differential rates and differential reserve requirements you want to minimize unproductive lending you want to minimize takeover lending speculative lending derivatives gambles is what matt wanted to encourage is consumer you know lending to the real economy to Real Investment but as they say just said thats not what banks do that what the textbooks say happens is not at all what banks do and certainly not what i experienced when i was in but when leon cooperman Hedge Fund Manager or Warren Buffett they go on c. And b. C. And they literally cry their tears flowing every time the suggested that they start to update the law or they start to get rid of their speculative excesses that are undermining the economy why shouldnt the reposed to that from the democrats or whomever be raise the margin rate ok just raise the cost of what are your respect other words if youre at the casino in the casinos going bankrupt a casino dont willfully go bankrupt these gamblers are willfully bankrupting america the casino has the good sense of raising the win ratio on the slot machines they dont willfully go out of business ok we raise the win rate on the speculators by raising just the margin rate of the owners 5 percent or 10 percent very good idea im all for if every market is structured and managed every economy is a planned economy the question is whos going to do it or right now instead of the government planning the economy you have wall street planning the economy and thats more centralized than government planning better for people dont realize when did you get your p. C. In economics 1960. 768. 00 of course thats when we began the process of going off the Gold Standard essentially as near as sending too much gold overseas financing this war in vietnam and our trade debt. Set with france u. K. Whatever but the fact is i want to ask you like how radical compared to the rest of economic history that you had learned was that 1971 moment of having all just global fiats there had always been some sort of Gold Standard in or some sort of more solid universal standard like right now it feels like only the usa exclusively knows how much theyre printing what they have how much theyre going to pay back what sort of what the quality of the debt is how radical is that moment and what did the been the consequences well it was radical in the sense that no country had ever said they would go to war over the kind of International Financial system we would have but once the United States went off gold it threatened saudi arabia for instance that we would go to war if so to arabia didnt recycle all of its oil revenues back to the United States. I went to the white house. And had a discussion about that and it was radical in the sense that nobody knew that going off gold would enable america to have an entirely new kind of imperialism without paying in gold when they were in the balance of payments deficit which was a military deficit there is nothing that we could give other countries but government ious and it was radical because the larger the balance of payments deficit we ram the more these dollars went into foreign Central Banks and they would use that to buy Treasury Bonds to fund the domestic budget deficit is on the question look theres a 20. 00 bill right every 2 every bill theres billions of billions that are printed has a serial number yes why cant the serial numbers be published so the public can see exactly where theyre all going in other words are going to fly it you know pallets of billions into iraq unaccountable completely and no oversight for reasons we have no idea thats thats not acceptable ok if you want to have money you dont want gold you just. Want paper money back buy a nonsense ok thats what you want to do but we should be able to see that number at least a big point i know exactly where every transaction is and every single moment of every single day for the rest of eternity but why cant we publish that number so we can see where theyre sending these dollars you have a pretty good idea from the Federal Reserve and the treasury both in publishing the Currency Denomination by far the largest per mass of currency 100. 00 bills held outside of the United States so the 100. 00 bills are the medium of choice for a latin American Drug dealers and cia dirty tricks operations for. The us and if youve been around a long time how come the cia is so bad a cruise these days the cia used to do couzin lot america all the time and they were pretty good at it these days they dont seem to be able to even stage a coup anymore they screwed up in venezuela they cant even do a stage in america they cant even do a coup in america and their own turf theyve been trying to do a coup against trump now for a few years they failed how come theyre so bad at coups the cia well you had a doing a coup in honduras that was the last major coup they had you have had the cia cordon made a coup in brazil to put the elect the president in jail and how many times they were trying with fidel castro. I think they tried to kill him 128. 00 times you have to realize that the cia grew out of sort of the o. S. s the cold also social the cia is run by very rich rich little kids that are playing a game and its very hard to have a spoiled rich kids try to run the world when they really had to work in it or ever get but i have been a balance those are my peeps we were in the cia thats our power base you can have Everything Else so youre going to be treasury secretary of the United States of america perhaps by 2021 next year and this time you could be getting ready for office. But what can i base that weve had it even over the last like 2 years many of them dropped out like who would you want to serve under which which candidate had the best policies by well obviously bernie and hed probably put my former Department Chairman stuff and the head of the Federal Reserve and so we had to work just fine to gather like we did a u m k say modern monetary theory which is a whole topic unto itself fascinating stuff but weve got to take a break when we come back well pick it up from there all right dont go away. You know worlds big partners. Log and conspiracy its time to wake up to dig deeper to hit the stories that make the stream media refuses to tell more than ever we need to be smarter we need to stop slamming the door on the shouting past each other its time for Critical Thinking its time to fight for the middle for the truth the time is now for washing clothes for watching the hawks. Thousands of american men and women choose to serve in the countrys military and the decision. Every time to complete. The im afraid to be instructed you know told to shut up what theyd kill me and i see how it destroyed my life any screamed at me in the me me come in any grandma. Any rate means birthing 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 tapping but ive never seen true. Like ive seen women who are veterans who have suffered military sexual trauma reporting rape is more likely to get the victim punished dont be offended by hand and almost 10 year career or chose very invested in and i gave a sex offender who was not even going to justice or put on the registry this is simply an issue of tower and violence male sexual predators for the large part of target whoever is there to prey upon whether thats a man or woman. Join me every thursday on the alex im unsure and ill be speaking to get a little the politics sports business im show business ill see you then. But im back to the kaiser report 1st show of the new year welcome to 2020 years not the debt wish project the remake of death was with dr Michael Hudson playing the role of Charles Bronson during a break i contacted abel ferrara he was the director of such classics as the bad lieutenant hes agreed to come on hes now attached to the project ive also agreed to appear in the film should be out sometime in early 2021 stacy well ive ive enjoyed spending the 1st few minutes of 2020 with dr Michael Hudson but i really had an idea here that you know your treasury secretary coming up next year which means of course that the hash tag to elect you somehow got through the filters and Silicon Valley and it made me think of california which is the largest economy in the United States its where any of the i guess innovation happens a lot of crime innovation happens here in new york but out in california. What is wrong with that state its like the most liberal the most socalled Progressive Social justice warriors they love to run it like think of ideas to control the rest of the world how they should lead and yet when you look at that economy which is the biggest in the us its a disaster zone you have mass homelessness their infrastructure is collapsing they have like half the state incarcerated for a life for stealing pizzas so like what would you do what is wrong with california are your the biggest state in your economy you control right now what would you do to fix that californias problems stem basically from proposition 13 which was passed almost half a century ago to say we will not raise taxes on any property owned by anybody here will only raise taxes once they sell so. Texas remain very minimal on masses of property there the pretense was that this was to help homeowners stay in their homes. And not be forced out as they reached retirement age with a house inflation going up and the tax inflation going up the reality was this was all propaganda by the large commercial Real Estate Interest so commercial real estate obviously the same corporations have owned them for the last 50 years and the commercial real estate doesnt have to pay a tax well almost all states and municipalities in the United States base their local spending on the Real Estate Tax thats how americas function for 200 years but california doesnt have that tax so the californians voted if you look at revealed what economists call revealed preference what do they prefer californians want to be poor they want to be homeless that this is their democratic choice they want the real estate people to run the state they want the rich people to be to be untaxed and only the employees pay the tax. They dont want Free Education they voted against them they want a very expensive education so that they have to go out of state they think that that will encourage the children to have another experience in the more civilized part of the country so california really voted for suicide and its because largely of the of the real estate and proposition 13 the enormous amount of propaganda that went into electing Ronald Reagan who basically wanted to make wealthy Old Fashioned a way to take the Public Sector and give it to the campaign contributors. To loot so california has been looted steadily its like of the gold rush. All over again who spend the result of neoliberal policies in california play describing there is a cognitive dissonance right people dont assess a prop 13 with the fact that they have no money to supply adequate infrastructure and to combat homelessness and provide basic services where economics does one a factor in cognitive dissonance being another words in a last 10 to 15 years weve had the growth of behavioral economics and this is an attempt to somehow quantify and monetize our past behavior and to understand how that impacts the economy and then to enact policies to mitigate that risk is that do you follow that school at all do you have any thoughts on that is it something that needs to be put more aggressively into the policy mix in a state like California Well the role of Economic Education is to create positive dissonance it is it really should be taught in the Literature Department as part of Science Fiction because that teaches about a parallel universe of how a universe would run if austrians of the 19th century had designed it or if Milton Friedman the shut go school to find an economy without a government without Regulation Without crime where everybody. Behave rationally in a way to create wealth of course this is what the romans believed in their legal system and we all know how bevan the meal in our example cognitive dissonance is baked into the cake you know you have this disassociation they prop 13 i dont understand why the somebody almost people here while their government is bankrupt but what about you know heres our lay i mean the movie industry would exist in the Technology Industry what is exist without government you know with that taxes and none of those billionaires would exist but they dont they once they acquire that well if they become they have always to call on wall street a god complex but nevertheless mexia wealth addiction we were just in detroit and in detroit a wealthy company in the lending business plunked down billions bought 100 buildings in downtown detroit an completely fixed it up and theres not Homeless People on the street and theyve made it into a model city because one company one corporation thought you know what we actually want to do something for our community theyre from that area they ploughed back into the community how come detroit is not held up as a model for other cities to follow in other words get corporations to clean up their own backyard trump is right when he criticizes nancy pelosi 1 and says youre here in washington harassing maybe you should be back in San Francisco cleaning up the fickle matter from the streets well if most of the wealth in the United States is from real estate doesnt sound like detroit is a way to make billionaires who make runs in their sleep as they do in california so this is exactly what the california spent fighting against ever since the 19th thirties when there was the great president ial Governor Campaign with Upton Sinclair who ran for governor on a basically a real estate ticket he was a follower of henry george the real. Is that the precondition for a governor being governor of california was not understanding how the economy worked author of the jungle up to clare up with the phrase you never trust a guy whose salary depends on him being lying to paraphrase he was like the Jimmy Mcmillan of the age that t