tv Keiser Report RT November 23, 2019 11:30am-12:01pm EST
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 chileans and dollars into their buddies on wall street and that's one of their buddies i was on the way really happy. 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 i gat 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 dodd frank wall street
reform and consumer protection act to get the s. and p. 500. transparency has been obliterated all sound accounting has been obliterated. economic policy 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 the ecology the social cohesion risk as the economist magazine calls of have been ignored or obliterated everything having to do with a sound society is being ignored to get a number 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 cost in the next headline but in fact i want to say you know one thing kaiser reporters always said in particular this guy in emacs. kaiser on kaiser he says that the bankers always commit these
crimes and then change the law so after the financial crash member chris dodd before he was paid off by hollywood and got to run the n.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 is as close 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 at the new york 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 said 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 of a. perhaps
a some european bank will never know until it collapses just like in the 20072008 as that the system started to collapse remember bear stearns was going under we were in london at that time and london has libel was 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 bit benevolent dictators means hollywood celebrities are going to go to jail as part of the college admissions scandal they should make the same claim like i know we violated the law but we're staying sure 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 is keyser 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 the headline 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 the 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. $500.00 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 will 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 coup de kratz they're 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 transparent and showing how great the economy is wealth is at an all time high it's 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 and you know middle of the top basically the very middle class and the upper middle class so not the lower middle class not the working class back in 2002 it was reversed 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 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 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 the president loves 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 the cable news here and there's absolute derangement 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 of 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 the. that's
a hoax that's fake every and the opposite team is like that 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 they're like they see both sides as 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 mentioned that michael bloomberg was worth only $20000000000.00 in 2008 at the beginning of the money printing spree a reign of money printing terror $20000000000.00 now he's worth $52000000000.00 some job agone 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 compared to his $32000000000.00 he's made there do you not see like the difference at that sort of once you're up in that billionaire stratosphere like that that sort of increase a 5 percent increase for him versus a 5 percent increase to you is seismic 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 your stock buybacks and you end up with no way to protect yourself against fire so they are.
higher portions of the population are just being cut off from the grid and that's part of the end game 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 after record high right at negative interest rates imply that there will be no stop to an awkward bias because time has no value of one's time as a value than stocks up an infinite value well we're going to take a break and when we come back what's right coming away don't go away.
you know world a big part of the market and conspiracy it's time to wake up to dig deeper to hit the stories that made stream media refuses to tell more than ever we need to be smarter we need to stop slamming the door. and shouting past each other it's time for critical thinking it's time to fight for the middle for the truth the time is now for watching closely watching the hawks. the tense situation in venezuela is still a little over the news the problem in venezuela is not that socialism has been poorly implemented but that socialism has been only implement from the inside venezuela things are different we're going to announce sanctions against the truest of venezuela so suit. them. the tempest that.
data to see on. the map of the moment the focus of the who story isn't new nixon called in henry kissinger to tell him that it would not be tolerated in latin america an alternative economic and social system could take hold and therefore the policy would be to make. the chilean economy scream so wants and making the economy of venezuela screed. welcome back to the kaiser report i'm max kaiser coming from some warehouse in
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 and what 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 friends market but they have switched their apron 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 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. citi being available because our whole system is based on the fraud that lenders actually have the money that they've lent which they don't have they actually
create the money they land on their books they create deposits 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 a during the day and the borrower has it at night and then the repo is a sort of like it's like applying shop it's like. we pretended 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 gave you this thing back in a prime chapter right j.p. morgan it they seem to have their finger on every dirty pie out there member m.f. global what the john karr is on scandal that jamie dimon was what forced a similar liquidity squeeze at the time he went ahead of all the other creditors in a way that's actually unprecedented in some i was an illegal and caused that crisis and the london whale of course j.p.
morgan another egregious transgression of law to fill jamie dimon stock as he's become a billionaire in the last couple 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 where entrepreneurs take risks with j.p. morgan enough last year i think there was 4 or 5 months straight in a row where they made money on their bets every single day a cyclist in 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 you have 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 saw 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 you 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 got 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 about this for a few years now and tell us about a b a 857 what is it that we're the people driving this forward tell us ok this is a bill that was just signed by governor gavin newsom for i'm carving out
a special charter for a public bank so give us all the per day requirement of public bank being a bank owned by a government that would be in this case it's usually it would be a city or a collection of cities or a county or region on but you know some turn i mean yes for banks. and it was what was particularly interesting about it was that it was pushed through by. a group of activists largely by millennia with an alliance formed of 10 different cities or india they originally met i think are at a retreat that we had the probably based institute chairman of the public banking institute so we had a retreat in colorado a couple of years ago we brought the activists from across the country together and so these people met each other and. drafted the original draft of a bill and persuaded. 2 legislators to bring it to chew and shut.
me guess and go and l.a. and david chu in san francisco they sprinted the bear they read the office is the beta and then you had these this millennium force that was just behind this bill they got one $183.00 endorsements from major organizations including the caliper in a democratic party and major you know many of the some of the reason is because last year we went to an event in l.a. and then there was a vote as something was defeated all right right and then now it's a success so. in l.a. i splurged a trainee teacher and it's very dynamic woman millennial 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 sorry in los angeles all the
city's deposits are and wells fargo right now plus strong to say this is politically been pressure they've got the law deals coming in that 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 or 5 percent on their deposits which is easily done on a 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 a 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 deposit. and it would fundamentally change how the banking system works what
other benefits would we get from a public bank 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 postal banking and there's a bill in congress right now for postal banking and these would take individual deposits and they would serve 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 have the high fees that they're paying now i saw somewhere that over the course of my life today 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 is cheaper the cost of money on the positive side and it's just banks doing the right if the utility function of a bank and you don't really have that in the u.s.
right now and i think the activism less happening on the democratic side and there's a lot of new ideas going around let's talk about andrew yanks policy universal basic income it's not actually apply in the sky. 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 find it with chronic state 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 play sure but it didn't influence that consumer. our consumer price level so i would are you know 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 the money goes into creating more supply so that you've got supply and demand going up together then prices will inflate and then chinese increase their money supply by a factor of $18.00 over the last 23 years like they double the price well you know 800 percent over 23 years and the inflation rate is totally level it has run out 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 a 2nd about 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 trinkets you save that money and it doesn't either it doesn't go into the money supply into the consumer market or it goes in new your savings either pays off debt or it goes in a savings and that's what most people would do it because well wait wait wait we
can only hope anyway alan browne thanks much for being on the kaiser report ok all right that's going to do it for this edition of the kaiser report was may be nice guys are safe here we want to thank our guest alan brown she is the author of web of death if you want to catch us on twitter at kaiser report. descriptions summed up to tell using even so the owners. to choose just absolute industry is telling us what to feed our pets. based on what they want to sell us and what's necessarily good for the troops. may not be this people believe we have the enemy. said have you know diabetes in arthritis they have auto immune disorders
they can't allergies we are actually creating these problems it's a huge epidemic of problems all of them i believe can be linked to a very simple problem of diet and some dog owners so heartbreaking stories about their pets less 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. was. there aren't.
yet and belong to the sort. of the soul of the. name put a monument can you still cool in the middle of the screen brazil cityscape granny. he thought the. fish are going for him paul mudgett the below normal which. donna suspects ill and don's of the videos of such a post will be sure the message will. be with the infant daughter one who because i . you know look you know young.
dr dhar. carnival for much of the please. give me a trial donald trump wants his day in the senate so the impeachment hearings reach the next critical stage while democrats say they won't pull out to get more public hearing. this concern over germany's new attempts to tackle paedophiles online as critics hope that using police results is to create fake child porn videos on the dark web also ahead. columbia imposed a curfew in the capital and made when new to launch anti-government protests and a deadly car bombing in the south american nation.