tv Keiser Report RT November 22, 2019 11:30pm-12:01am EST
i'm max kaiser this is the kaiser report yes there is one number only one number we must get to that number is to the greatest number ever invented by humankind we're going to get to that number is better than the living is better than mars landing it's the s. and p. 500 number stacy we continue to go up and down up and down there's a lot of hope a lot of euphoria and a lot of tension about the trade deal with china but before that we're going to look at the underlying cause of the latest hyper inflationary move in the stock markets and that's been the fed the fed of course is essentially the cause of the entire rise in the stock market since 20072008 the financial crisis they've been pouring trillions of dollars into their bodies on wall street and that's one of their buddies i was a really happy for me that's the opening bell out there so fed will not disclose
which banks are receiving repo cash for at least 2 years this is our friends at gap the gold antitrust action committee out there in connecticut and they filed a freedom of information request with the fed they asked them who's getting this repo cash if you want to know which investment banks have been getting the infamous repo loans from the federal reserve bank of new york in recent weeks as gats a has wanted to know you'll have to wait 2 years according to a letter received from the bank today in response to gattis request for information a delay the new york fed's letter said as off arise by the dod frank wall street reform and consumer protection act to get disappeared 500. all transparency has been obliterated all sound accounting has been obliterated all economic policy that is tied to any economic school that makes any economic sense has been ignored and obliterated the rule of law has been obliterated the wealth and income gap. ecology the social cohesion risk as the economist magazine calls have been
ignored or obliterated everything having to do with a sound society is being ignored to get a member to a higher level and it's getting to a higher level but at what cost the cost is going to be catastrophic we're going to go over some of the costs in the next headline but in fact i want to say you know $1.00 thing kaiser reporters always said in particular this guy named max kaiser on kaiser where he says that the bankers always commit these crimes and then change the law so after the financial crash remember chris dodd before he was a paid off by hollywood and got to run the m.p.a. chris dodd and barney frank did the dodd frank act well here we have the fed using the dodd frank act which was supposed to help the citizens of america and give them some sort of transparency from ever being on the hook for another 141-516-1718 extension 1000 trillion dollars for bailing out the banks well he's
using the new york fed as using that as an excuse why they don't actually have to show this data set of cloak and dagger as cloak and easing cloak and easing mystery no we're not going to tell you anything having to do with this massive bailout this ongoing massive bailout that we're calling a repro function down there in eric fed and elsewhere are not going to mention the fact that there's a like the whistleblowers remaining anonymous the recipient of this huge bail out even though everyone knows who it is j.p. morgan we can't say anything about that in fact some of our guests have said it's deutsche bank because deutsche bank is one of the member banks able to access the fed's repo window so we don't know which bank it is many say is j.p. morgan j.p. morgan of course that is flush with cash the taxpayer america has given them thousands of trillions of dollars so they've given them a lot of money and they've got too much cash that they know what to do with deutsche bank credit suisse all these european banks are a could be in distress of course. the other thing about this is that they say that
perhaps more interestingly the new york fed's letter signed by corporate secretary shaun elizabeth phillips contends that the bank is exempt from the federal freedom of information act but tries to comply with that spirit so they're even saying like dodd frank says we don't need to show this to you for 2 years but beyond that we're beyond the law we can't there's no freedom of information request that you can admit to us and the fact that yes it appears that is there is at least one bank perhaps is j.p. morgan perhaps it's credit suisse perhaps it's a deutsche bank perhaps this is some european bank we'll never know until it collapses just like in the 20072008 as that system started to collapse remember bear stearns was going under we were in london at that time and london has libel laws the in the united kingdom so british press were not allowed to mention on that friday and remember the bank collapse on saturday or sunday when j.p. morgan took it over that friday they weren't allowed to warn their british citizens that this bank was about to collapse all they could say was
a bank was about to collapse and basically go google it because the american press is writing about it you know like the idea that they don't have to comply with the law but they have to make a nod to the spirit of the law and i'm like where but benevolent dictators means hollywood celebrities are going to go to jail as part of the college admission scandal they should make the same claim like i know we violated the law but we're staying sure of the spirit of the law but apparently there's a 2 tier system in america let's talk about that 2 tier system that the fed has created is we've kind of covered the story the fed is coming out with this new data and this is them being transparent and apparently just like much of the democratic party like they don't realize that their it's like a let them eat cake moment that they don't realize how they just don't get it they don't get the rage and the anger of the population they're going to say it's a conspiracy it's kaiser or it's causing them to be angry or not this data so well street looks at that data and they find the how the fed boosts the one percent.
even the upper middle class loses share of household wealth so the one percent bottom half just get screwed ok the federal reserve just came out with its quarterly data on the wealth of american households as mostly they have by numbers that are being displayed in the media how much wealth american households have namely our new record of $107.00 trillion dollars thank you fed q.e. interest rate repression and wealth effect but the fed's data also shows the wealth distribution the bottom half of the population bottom entire 50 percent of the population has just 1.9 percent of that $1.00 trillion dollars in wealth but the top one percent is getting more and more they now have 32 percent of the wealth versus 27 percent at the beginning of the reign of fed terror right well like i said this is not just in american history where you've got a talker see emerging and a huge wealth and income gap as we saw in the late 1900 twenty's and in other eras this is about a new phenomenon which would be the top 110th of one percent taking the entire
economy private by buying all existing s. and p. 500 stocks doesn't matter what they pay for it doesn't matter what that number is because they're buying it with money given to them from the central bank for free and once they take all these stocks private we all then have feudalism or neo fatalism and if you're not part of the inner circle of the top 110th of one percent you will be living in a no man's land slugging it out on the street corner deafening in the street and acting like you live in san francisco every single revolution throughout most of our history going back to the french revolution the american revolution what you need is the upper middle class those are the people that you need to start to rebel against the oligarchs the clue kratz their aristocrats and this is what you can see in the data here looking at what wealth richter at wall street dot com dives into the data that the fed released and proudly they thought they were being very trance . and showing how great the economy as well as at an all time high is 107 trillion
thanks to all their money printing but today the share of the one percent is nearly 4 percentage years higher than the share of the 50 to 90 percent of the 50 to 90 percent of the upper middle class that and you know middle top basically the very middle class and upper middle class so not the lower middle class not the working class back in 2002 it was reverse the share of the one percent was about 10 percentage points lower than the share of the 50 to 90 percent so the top one percent are racing ahead of everybody behind them and it used to be that the upper middle class and those are many of the professional people many journalists on local newspapers or in even in the new york times like not the headline writers but you know people spilling in the stuff workers in hollywood most of them are only middle class incomes you know some of them are making 2x5w5xw
a year but most people in hollywood are just making $100000.00 a year those people are the ones that have been condoning and providing that the justification for the top one percent running off with everything until now it's racing ahead right is racing ahead and really unprecedented in terms because the solution to every single problem is also print money oh there's inflation most print money there's deflation let's print money there's stagflation let's print money we like president love print money we don't like some other government somewhere else in the world let's print money we don't like the fact that the new england patriots are going to win the super bowl again let's print more money the houston astros cheated to win the world series let's print more money there's no thing there's nothing that is not responded by print more money and that money goes into the same pockets and that's where the engineer did and that's their solution is to print more money for themselves the way that this our media facilitates this happening as of course if you tune into. cable news here and there's absolute
arrangement about trump and trump is the cause of everything and if it's not trump it's putin that causes everything in our society but in fact the that the 1st time that the one percent had a larger share of household wealth than the 50 to 90 percent that happened in 2013 that was obama administration so this is a bipartisan issue it doesn't matter which team is in power the red team or the blue team and most mention the patriots the patriots their fans are fanatical and if there's a deflate gate thing that's a hoax as fake every and the opposite team is like that's that's their chief their frauds so this is what we have in our system and that's how this sort of situation erupts where you know the forget the 50 to 90 percent below the 50 percent there like they say both sides is what they are so that's the situation we have there right i'll be curious to see what happens when you have tens of millions of americans without no more jails and hold them and there's no houses for them and
they're just wandering around lost in the plains just clogging the system up i'm curious what the solution is going to be that they're counting percentage terms so you know i had an encounter on twitter and the 1st i'm going to read a quote from wall street and i'm going to put it into context of my twitter exchange this is the upper middle class and the top of the middle class the 50 to 90 percent and they're losing out to the one percent and that's a big deal in terms of dollars because those households have a lot of wealth in the one percent but their share is shrinking as the share of the one percent is gaining i've mentioned that michael bloomberg was worth only 20000000000 in 2008 at the beginning of the money printing spree a reign of money printing terror 20000000000 now he's worth 52000000000 some joe bag of donuts on twitter who said like you put $10000.00 into the stock market in 20082009 it's 4 x. 0 that's no big deal i say do you like your new $30000.00. to his
32000000000 he's i mean there do you not see like the difference at that sort of once or often that billionaire stratosphere like that sort of increase a 5 percent increase for him versus a 5 percent increase to you is seismic and the ability to cut people off from basic services is going so whether it's censorship on the internet or there is a utilities in california is being shut down through ineptitude and just bought buybacks and you end up with no way to protect yourself against fire so they tire portions of the population are just being cut off from the grid and that's part of the endgame speaking of the end game of course what the fed wants what all the plutocrats want and certainly what trump wants but certainly what the democrats do not want they are praying and wishing and hoping for a market crash unfortunately while we've been here in brooklyn in new york s. and p. 500 index passes 3100 stocks hit another record high
so we continue to soar hitting record high of a record high right at negative interest rates imply that there will be no stop to an upward bias because time has no value of one's time as a value than stocks of an infinite value well we're going to take a break and when we come back once more coming away don't go away. with moves to. put themselves on the line. of the reject. so when you're the person you. want. to go in the pros this is what the 3 of them will be. interested in the war.
my yaar. welcome back to the kaiser report on i'm max kaiser coming from some warehouse of brooklyn where there's a lot of noise you might hear trucks and boxes and stuff anyway we're going to be talking to ellen brownstein is the author of the instant classic web of debt ellen welcome back thanks max i want to get your expertise pick your brain on something here you are someone who has studied banks and their impact on monetary policy what is your instinct and what is happening in the repo market the new york fed has apparently found over $100000000000.00 per day it looks like a rolling bank bailout ellen well it seems that 1st of all the report market is
what banks use for their. to get overnight loans it used to be they said friend market. they've switched their apra market because it securitize and because it's like the alternative to deposit insurance where it's backed by a collateral and because they used to be they made a little more money in the repro market but of late j.p. morgan wastes the big provider of deposits to the reproach you know their excess reserves and they've they cut off their x x x or it serves to this same extent that the fed has been and money to the report market so it appears to be j.p. morgan and that's where the gap is and the reason they have pulled their money out was that they were using it to buy back their stock from that so they've found more you lucrative uses for their money then to lend that to other banks or their
financial institutions that need it so that's one basic problem with our money system that it's all about short term profits at no matter what the external costs are or who you heard to mean the whole market depends on all this liquid. and he being available because our whole system is based on the fraud that lenders actually have that money that they've lent which they don't have they actually create that money they land on their books they create a presence on their books and they make loans but then they have to come up with the money when the check goes out and goes into another bank so they engage in this fraud or this illusion where they borrow the money overnight and then they get it back the next day so the lender has it during the day and the borrower has it at night and then the repo is a sort of like it's like a pine shop it's like we pretend that i actually bought the thing and here's the money but you agree that you're going to give me the money back tomorrow and i'll
give you this thing back like an upright chap right j.p. morgan they seem to have their finger on every dirty pie out there member m.f. global what the john karr is on scandal to jamie dimon was a force a similar liquidity squeeze at the time he went ahead of all the other creditors in a way that's actually unprecedented in some illegal and cause that crisis and the london will of course j.p. morgan another egregious transgression of law to fill jamie diamond's pocket has become a billionaire in the last couple of years just by nicholas bombing people to death you know the thing about capitalism and free markets is that there should be an element of risk right just on a planned economy it's supposed to be a free market economy we're entrepreneurs take risks with j.p. morgan you know last year i think there was 4 or 5 months straight in a row where they made money on their bets every single day of cycling a coin and having it heads continuously every day for 4 months without
a single tails so that doesn't imply that they're taking any risk here once again they're just manipulating the architecture of the system to milk to bilk to extract and what does that do to the liquidity of the system as a whole if. one major player and of course after 2008 there was massive consolidation j.p. morgan ended up buying bear stearns and other institutions what does it do when you have a player like that as well nop ally's ing who is terrorizing who is extracting wealth what happens to the economy as a whole well if you can assume that all money is created as a as a loan as the bank of england says 97 percent of the money supply is created as a loan and it's extinguished when the loan is paid off and there is no the interest is not created in the original loan so there is always more money back there might be created in the 1st place and if you have the player is holding back some of that money that was created i mean in order to balance assist them really you would have
to have all the money out there available to the buyer ways to pay back the loans and if somebody holding the money back like j.p. morgan then it shrinks that money supply or the money available for paying back loans so that means that debt grows bigger and bigger and bigger until it's a pyramid scheme until the pyramid tips over and there was a bit of a ransom scheme on the head on behalf of the j.p. morgan and he mentioned that the bank of england mentioned the 97 percent of all monies loaned into existence that was the work of the activist group in the u.k. that god i think was positive money was the name of the group and they got the bank of england to put forward as a fact that the fact this is there's no reserves in any of these banks they're supposed to maintain a sort of minimum reserve and then you have fractional banking that goes along with it and then you have this velocity of money that supposed to be creating economic activity but what we've discovered is that banks actually have no reserves at all
and the entire system is working on a negative reserve basis around the world and that's what makes it incredibly fragile now you've been working on public banking you've had some recent successes you know very happy to report because you've been talking. those 1st few years out tell us about a b. 857 what is it who are the people driving this forward tell us ok this is a bill that was just signed by governor gavin newsom for carving out a special charter for a public bank so it gives all the current requirements of public being a bank owned by a government that would be in this case that usually it would be a city or a collection of cities or a county a regional but you know some sort of municipal bank. and it was what was particularly interesting about it was that it was pushed through by a group of activists largely behind the on so. i know alliance formed of 10
different state he said california they originally met being at our at a retreat that we had the public institute chairman of the public answer to so we had a retreat in colorado a couple of years ago we were out there activists from across the country together and so these people met each other and. drafted the original draft of a bill and persuaded to. legislators to bring it to chew and shut. me go go in l.a. and david chu and separate cisco they sponsored the bear they were that this is the bill and then you had this force that was just behind this bill they got 183 endorsements from major organizations including the california democratic party and a major you know meet on the some of the recent history because last year we went to an event in l.a. and then there was a vote and something was defeated right there now it's
a success so. in l.a. i splurged a training day it's very dynamic one man who she started out with i meet up for divestment divest. l.a. and 3 people showed up to her meet after her 1st meeting but she kept an eye on it they wanted to divest from wells fargo and california star and my sandal as all the city's deposits are and wells fargo right now flash forward to today this is politically been pressure they've got the money coming in now this public bank is moving forward and of course if you have a public bank and it's near 100 percent reserve that means that a bank could very easily pay a deposit of $4.00 or 5 percent on their deposits which is easily done on 100 percent reserve bank and that means that every other bank in the country would be now pressured to compete with that public bank that's what's great about a public bank or a government bank is that a offers consumers
a way to make some money on their deposits were they're not getting that on the commercial bank right now private bank due to the fact that all their money is being thrown into rampant speculation and loss of the most part requiring this continuous bailouts and that would be great to have some nice 4 or 5 percent return on my deposits and it would fundamentally change how the banking system works what other benefits would we get from a public bank well let me say 1st that the type of public banks we're talking about would be on the model of the bank north dakota so it doesn't actually take individual to profit but we do think that we should have post the banking and there's a bill in congress right now for postal banking and these would take individual deposits and they would share the i and banks in the end their banks and give them much lower interest rates and then pay payday lenders are giving them now and you know give them essential a free banking services and that if the high fees that they're paying now i just somewhere that over the course of my life that i mean they pay like $40000.00 for
baking just for banking services not for loans or anything but just for their checking account right in france we have a postal box you can go to the bank i know you get the cost of borrowing money. cheaper the cost of money on the positive side and it's just the bank's doing to the utility function of a bank and they don't really have that in the us right now and i think the activists are less happening on the democratic side and there's a lot of new ideas going around let's talk about andrew young's policy of universal basic income it's not actually implies a sky high. in your view do you think that's possible but andrew young i think would friend a universal basic income with taxes which i don't think is going to work because i just don't think it would pass but i think you can fund it with chronic tate of easing for the people and either way it's clearly the federal reserve confront anything we want it to it's just
a question of whether it's going to cause inflation or not like how much money can you just create and put out there and we already saw that it can create $3.00 trillion dollars and not seem to influence inflation i mean obviously the stock market went up in the air and some speculate in place but it didn't influence the consumer consumer price level so i would argue we could put a lot more money out there than we think we can 1st of all we're not really a full employment you know if you if that money goes into creating more supply so that you've got supply and demand going up together then prices will inflate and the chinese increase their money supply by a factor of 18 over the last 23 years like they double the price you know 800 percent over 23 years and the inflation rate is totally level it has a net why is that 1st of all their g.d.p. level went up at the same rate so they've increased productivity at the same rate
that they've increased the money supply 2nd of all their big savers so it's not like you get this $1000.00 a month or whatever and then you instantly buy a new watch or buy you know trinket you can save that money and it. either it doesn't go and the money supply to the consumer market or it goes in new york savings in their pay is half that or it was a mistake and that's what most people would do it has 08 wait wait wait wait we're going to hell anyway alan brown thanks much bring on the kaiser report ok all right that's going to do it for this edition of the kaiser report with my bad guys or stacy i want to thank our guest allen browne's she is the author of web of debt if you want to catch us on twitter a geyser of. the
world is driven by shaped by. thinks. we are here to ask. good food descriptions sound up to tell using even for the owners so how to choose that food industry is telling us what to feed our pets really more based on what they want to sell us the most necessarily good for the pet. may not be this people believe we have animals that have you know diabetes and arthritis they have auto
immune disorders these allergies we are actually creating these problems and it's a huge epidemic of tom's all of them i believe can be linked to very simple problem . and some dog owners so heartbreaking stories about their pets last treats the larger corporations are not very interested in proving or disproving the value of their food because they're already making it a $1000000000.00 on it and there's no reason to do that research. i.
give me a trial. hearings reach the next critical stage rival democrats say they won't public hearings will tell you all about. the headlines this week. germany's new attempt to tackle. critics bowled using police resources to create fake child porn videos web. colombia imposing a curfew in the capital now amid renewed large scale protests on a deadly car bombing.