tv Keiser Report RT February 4, 2020 3:30am-4:01am EST
real max kaiser if you want to follow me and all my genius tweets that's where you go now let's talk about 20th century socialism this is when governments made mal investments and then they bailed out those mal investments and so the economy went bankrupt versus 21st century capitalism this is when banks make malinvestment and when they go bad they bail out the malinvestment and that cycle continues until the economy goes bust and that's were are today wow that sounds almost like a bernie sanders ad where he was pointing out that jamie diamond is the biggest corporate socialist of all time absolutely if this is an example of making mal investment not letting the market be the market but just bailing out bad guys making bad decisions being told the economy collapses or until you have the stomach collapse like with this new global virus out of china that's the reason that's that's the product of global economic collapse brought on by fear currency madness well speaking of the virus that we could use that as an excuse for being in this
new studio and this 1st half because i'm going to stay for 2 segments just to show you the different backdrops we have for us this is the 1st set and it's the new york city skyline with the bull and bear in front of it we have some nice little colors paying king belfast green and magenta there's actually official names for them my sister picked out but nevertheless anyway these are new backdrops for the 1st half stay tuned for the 2nd half of what have a different segment but you mentioned the central banks of this corporate socialism and one thing that has been remarkable certainly since 200-2001 especially during the dot com crash we've had more and more and more giant bubbles and huge collapses and the fed comes in way more than alan greenspan used to you know at the beginning now it's like they are the market so one thing you notice with that is that the. had news corp's deliver is the best
possible news they can deliver for shareholders any time there's bad news there price rockets especially if it's somebody like boeing which is too big to fail it's the one aeronautical engineering company in the united states that 7 percent of our exports it's got to survive certainly more than jamie diamond's j.p. morgan so freaking boeing post 1st annual loss and more than 2 decades a 737 max crisis continues now sometimes max you are broker it bad news like that like the 1st loss in 20 years normally people would say got to dump that turkey nope it was up as you see here 1.74 percent in the premarket on that news and then it went up even further right so let's put this into historical perspective so let's say after world war 2 the 1950 s. it's america it's booming you have 2 soda companies and they're competing they're
the dominant players in the soda business and they're competing if one of the soda companies announces oh my gosh we found something in our soda that's poisonous then the stock of that soda company would go down now let's flash forward to 2020 and this new 21st century form of capitalism based on bailouts and easy money and if you have money if so to company b. and mount something horrible about their soda like that poison in the soda then it's a guaranteed bail out because all bad investments all bad decisions all mistakes are bailed out by the central bank by the government in huge quantities are should say the central bank which is a private bank in huge quantities forcing everything to go up and that's the difference between the capitalism of today which is not only capitalism but a strange version of socialism as bernie sanders points out versus let's say postwar 1950 s. which was a truer form of capitalism and as i point out with boeing and as we. we recently
have pointed out in a recent episode they fired all their engineers there jack welch disciples jack welch remember the guy who was hailed by the mainstream media by the beltway by the manhattan elite he was hailed as a great savior of american capitalism when in fact he eroded a right he turned to general electric which used to be a giant manufacturing powerhouse around the world you know innovation and technology and manufacturing they turned it into a financial instrument it went way way out up 4000 percent and then collapsed nothing same thing with boeing here's their chart going back to the 1960 s. you see in the last 2 years they've gone parabolic right when they announced the firing of thousands of engineers and replaced with financial engineers and of course once trump came in because anybody who was shouting the loudest about being anti-war they figured this is that good guy to get us into more wars because you know that's the way it works like with nixon and china it's like if you're if
you're anti-war then you could you could definitely more war right well this was the great danger of the american experiment versus what goes on in europe for the most part so in america because the self-made billionaire is the father figure is the god figure is the pope figure in the american economy in the american culture at the expense of all other all other cultural institutions the church has been wiped out for the most part education's been wiped out social cohesion in the form of social mores and social values have been destroyed and replaced by the value of stock market appreciation and to be rich is really the end all and be all in the american experience now what's happened is that we've got a situation with boeing where this means planes falling out of the sky people dying executives engaging in massive stock wanting you know accounting and creativity and. causing the blow. back in the form of distant to gratian of the economy and
europe you still have strong social values institutions and so you have less of this going on but not america america is on the edge now kind of like eating its own tail is kind of going hand in hand with the beltway and what's happening in manhattan is like the investors shareholders want 20 percent every quarter like they want to with less and you've got to deliver a 20 percent returns every quarter to the shareholders not to the actual company you don't have to produce more apple did it that was they had declining revenues for the last 2 or 3 years and finally they have some good revenues but there's their stock prices going up the whole time as if they were reporting 20 percent returns the whole time as long as you get the share price up and how did they get the share price up if they couldn't deliver the revenues what did they do share buybacks right right and share buybacks is a form of insider trading which used to be a legal look at america these time libraries and now the library the institutional
library has been replaced with 2 elements 2 commercial elements amazon and starbucks right they created the a library of commerce where people go to. read content or enjoy content and have refreshment of some type but the institutional the library which the value is well beyond the value of the books in the library it's part of the social fabric where the parts are greater than the whole that creates a viable society that people are striving for the public domain but that's all been monetize commodified bought and sold and destroyed and as a result now the fabric of the soul of america is now being is disintegrated in real time you mentioned that the value is greater than the whole whereas of course most of the stock market continues to boom because there is so much bad news out there so it's only continuing to boom because they believe the fed will intervene and in fact the fed is into. meaning but. that the the negative it's all mostly
a negative book value i mean if you sold it all off you'd be left with a whole bunch of nothing and a whole bunch of debt well another problem of continuing to bail out malinvestment and the worst executives in america are the beneficiaries of the biggest bailouts is that they crowd out productive investment so they crowd out companies and individuals who would be adding something to the economy that they don't get funded but if you are someone like a wall street banker that's openly. told phoring and grabbing assets and doing so the trillions of dollars and you get a bailout so this is a replacement of a viable society with a club talk or see or attack a stock or see which is a rule by the least qualified i want to cut to a chart here because this is an interesting when talking about the fed intervention member they keep on intervening in the repo market hundreds of billions since the end of september and this is from
a guy named rich which he sounds like it sounds like somebody who would know how to put a chart together right that's the name of a guy who did chart shows the stock market going in lockstep and the little arrows up there amount of repo that day and literally goes lockstep up with every single bit of the 10s of billions per day that the fed intervenes right at the moment that they intervene and then they stopped intervening they stopped printing for a few days and markets tumbled and then they came to the rescue so that's what i'm saying is bad news is the best news as soon as you tumble even like half a percent and used to be you know max actually lived in a day and age worked on wall street when the markets fell 20 percent in one single day that's like so i can't imagine what happened to it though to the you know the mental health of people on wall street today when they can barely inter 2 percent.
right it's over 95000 a 7 remember it very well but look if you go in any city around the bus depot or a lot of the train stations you find really poor people strung out people drug addicts prostitutes because there's a steady stream of desperate people arriving on those trains or those buses here in america the companies that are on the crack that is free money from the central bank congregate together at a place like davos davos is a ghetto of strong out money aholic who are shooting up the free fed cash in dark alleys in switzerland and then they come back down into the general population and infect everyone with the virus of their free bunny well i'm going to cut to a headline from davus last week because before we go to the 2nd half because we have a lot of billionaires the 119 billionaires that attended davos that's about 5 percent of all billionaires in the world where there and there was
a guggenheim steve menard he sees the market as a ponzi scheme you should have seen the bloomberg guys who were like what do you mean a ponzi scheme that sounds like this a bad guy like made off and he was like well they might not be intentionally bad but if the fed the fed is the equivalent of mate off in this situation and he ended by saying buy silver so it sounds like kaiser report well remember the federal reserve bank is as much a government institution as federal express right now it's not it's a private bank servicing private private banks are engaged in a massive fraud as we see now that something like this corona virus is a direct result of irresponsibility in such a bank some people are dying but weighs a victimless crime all right go take a break when we come back much more coming your way.
so what we've got to do is identify the threats that we have it's crazy confrontation let it be an arms race move this on off and spearing dramatic development only personally i'm going to resist i don't see how that strategy will be successful very critical time time to sit down and talk. thinking of getting a new phone the ones we've gotten here she has no problem was as he didn't know until he was trapped in this tiny little wired how much we don't need a crate with him he will just start freaking out in she will want to spray him anywhere near. breeding dogs or caged in the into lane conditions on puppy farms i mean 67 years you know they've been locked up in a cage outside you see no protection from the weather the heat you know the cold air the rain the snow the funder nothing they have no protection. because you.
know it's true kids. across the u.s. cruel puppy mills are supported by dog shows and pet stores most of the puppies that are coming from these large scale factory farming kind of operations are being sold in stores even joined a group businesses are involved like agoa mom center there has been a shocking amount of organized opposition to adverts to increase the standards of care for dogs bred in commercial breeding for so many most of that opposition is coming from huge agricultural groups and industries that have nothing to do with jobs don't buy dog.
welcome back to the kaiser report imax kaiser think of this background so it's a different background part one vote down on the comments let's do you think and then we'll ignore them so any way to try to find me on twitter it's real max kaiser the kaiser twitter handle is big retired museum you can go through it and see 10 years of bitcoin comments it's very fascinating stacey you know we ended the 1st half and we were talking about ponzi schemes guggenheim is minute had said like the markets are a ponzi scheme because it requires ever more interventions by the fed to keep it afloat i.e.
the taxpayer paying through inflation the rest of the economy people not in the markets are paying through the inflation they're the child in this ponzi scheme well warren buffett the richest american one of the richest guys in the world he was a victim of a ponzi scheme but this story is just so precious to explain the behavior of the thieves the guys at the top at wall street owners of solar company that caused a loss for buffett plead guilty over a ponzi scheme a husband and wife owners of d.c. solar and california solar company that caused warren buffett's berkshire hathaway to take a $377000000.00 charge last year pleaded guilty to involvement in an estimated $912000000.00 ponzi scheme that's jeff and paulette karpov so they thank god he stole 377000000 from warren buffett who's the value investor who's supposed to know better and do the due diligence well what does warren
buffett and ray dahlia the manager of the biggest hug it's fun in the world have in common they're both underperforming the market so they're totally overrated and i'm not surprised you got taken in by apologies game because use overrated it's not that smart it was just about warren buffett another example of how clueless he is. after the internet boom started in the mid ninety's after well after he started by newspapers clearly there were going to be disinterred mediated by newspapers well just this week last week he announced he wants to sell these newspapers because he just figured out that it's oh no go where business and he's going to lose money with i'm sure so here's a guy who's critical of big coin and critical of technology but was buddy newspapers as early as you know 1015 years ago claims to have some special knowledge of the underperforms the market so why is he interviewed on c b c why does he get all the attention he underperforms he doesn't reach talking about he gets free money from the bank so what he also went in long apple only last
year around this time to be fair it did double in price since then but it's still quite late and the whole apple game but in terms of of these excuses that they use for why the markets are like they are why the fed has to keep on intervening jamie dimon who says we can't have socialism not recognizing that he himself is the biggest recipient of government welfare in the united states so these 2 this couple jeff and paul it karpov well authorities said the karpov's siphoned money to fund a lavish lifestyle including dozens of properties and vacation homes a nascar sponsorship a stake in a private jet service a holiday party featuring the rapper pitbull and at least $150.00 cars malcolm siegel a lawyer for jeff karpov said in an interview that his client quote feels terrible that his business started out intending to provide clean energy and tax benefits to many large corporations but unfortunately failed and resulted in his committing
a number of illegal acts right well as you are saying in this 21st century form of capitalism failure and fraud usually gets you a bailout occasionally they get a day some innocent mom and pop are to make it look like they're doing their jobs on innocent relatively innocent. relatively innocent mom and pop or. you know in relation to these broader scheme i mean warren buffett is famous mostly because he's a curiosity he's a guy sitting on tens of billions of dollars of personal net worth but he lives like a woman in some house in vegas hoarding old newspapers and magazines right he who is a hoarder he's lived in the same house for 40 years and it just is full of old newspapers and magazines and things and he's a curiosity he should be in ripley's believe it or not he's not like a sensible human being well he certainly is at the top of the pyramid if we talk about pyramid schemes and ponzi schemes he is one of the
early investors in this ponzi that is fed by the fed as is menard from guggenheim says so he is one of the complet accomplice of that scheme whether you know whether by just like luck or and ukulele luck or not but the fact is this this couple did the wrong guy and that's part of why they're probably going down no question about it he's like a mobster and those mobster movies you see they also have schemes where they're going to overturn the vending machine and get free bubble gum and it's really clever and but you figure you don't think it's got a real job and work for decent you know as a decent human being they would be better off whatever his intentions are where our however he behaves the fact is that the system when you have a system whereby somebody becomes worth $120000000000.00 say like jeff bezos under 20130000000000 that sort of power. it gives you
a huge amount of power nobody no regulator wants to go out after you nobody wants to take you down you are too big to fail you are too powerful the government doesn't have any sort of lawyers that can possibly take on your lawyers this is why we have giago behind you why we have a global insurrection against banker occupation because it is an occupation whether or not it's like it was set up in plantain like let's move these parts around and develop this system where i become this only garc so huge and so powerful and bigger than the state but that's what we have now and the fact that the fed can't stop printing because they've tried they've tried to taper their ponzi they might be like the car parts and they feel guilty about it and they don't know what to do so they're going to buy you know a nascar team to make the guilt go away now that you have pit bull perform at their you know fed annual party like they just can't stop their ponzi scheme they try they try to do good but it won't stop so there are like it is
a system that we're stuck in now and how do we move forward quick side compare buffett with baze those for a 2nd ok buffett is in the state mandated monopoly business of insurance which is predictable and he spent his entire career gaming the system to make it easier to leverage that income from insurance to get ever more risk less that's to say no risk rates of return and then it takes to t.j. norma's positions in companies that have sense done well but he is very different than jeff bezos who's in the essentially the retailing business who's taking a risk every single day that you might not buy or sell what he's selling or you want to go to his platform jeff bezos is an entrepreneur warren buffett is a ron t.j. this is very very different animals in the business world and he also is a huge owner of pacific union and also utilities across america. pacific union chairs are out there like they're treated like dot com shares right now and it's
the same business like it's today. only income he like what he says himself he likes moat obviously somebody a railroad there's only one rail that goes through town and if you own it you can charge what you want but you know i also want to talk about another story that you've linked to and you had ended your interview with jason touch show the germ guy by talking about comparing the contagion as we started at the top of the show with the corona virus and you compared it to financial virus and contagion and at the same time to us jim records was also talking about the same thing and it's quite interesting and let's talk about that records what happens when a biological virus turns into a financial virus you know the markets are still on edge and you know any time it looks like it might get bad that it does come will for a bit but then they always store by the end of the day as everybody's like the
fed's going to come to our rescue and bail of this ponzi scheme but he's he's talking about the contagion we know and the virus how it spreads and we all see it spreading around the world and somebody gets on a plane and goes to canada or goes to brazil and they spread it there but he says in terms of a similar dynamic applies in financial panics it might not have happened yet but it will happen soon right it can begin with one bank or one broker going bankrupt as the result of a market collapse the financial patients 0 but the financial distress quickly spreads to banks that did business with a failed entity and then to stockholders and depositors of those other banks and so on until the entire world is in the grip of a financial panic as happened in 2008 but it won't most of records work is about complexity theory and chaos theory and how when you add layers to a system the complexity expands exponentially mathematically or literally this. so he's comparing the virus coming out of china with
a financial virus and what we saw in 2008 was a financial virus also you mentioned the crash of $107.00 that was a financial virus between new york and chicago these systems between these 2 became highly complicated they were selling a product called portfolio insurance one of them broke down and it created a pandemic of financial chaos because it was systemically stable same thing in 2008 for different reasons for similar a long term capital management similar situation rickards was. an advisor ok yes he managed that bailout he was general counsel for that bella and now we have this via logical virus which is exploiting the complexity of the global economy and this just in time global economy where the supply lines in china where apple manufactures allow their stuff if they're going to be interrupted for weeks on end as people are saying ok i mean that's got to affect apple's bottom line but it won't because what we're saying is they will get a bailout tim cook will call warren buffett one of the biggest if not the biggest shareholder of apple and say please call your friends in washington and send us
a trillion dollars right now to save the world because we like free money and we have to compete because we're about uplift they'll say ok great no problem i'm a shareholder i'm happy to do that so that financial contagion. you know the fed since that 1987 crash before the 1987 the fed didn't intervene like it does they got together that day in 1907 when it crashed 20 percent who is it reagan rubin and greenspan they got together and formed the working group on family anshul markets that they got the treasury to intervene at that point because the fed can't buy stocks but the treasury can and the treasury to this day has a trading desk lord knows what they're buying but the fed can intervene with just cash new cast to lend to the banks and now apparently hedge funds that they're going to start lending to they basically isolated patients arrow and patient 0 is still alive in 1987 being fed and pumped in pump components with all this free
money right the want to group on finance later known as the plunge protection team was a response to alan greenspan's reinterpretation of the role the fed not to try to take the punch bowl away when the party got frothy but they keep feeding the punch bowl ad infinitum and forget crashes and that was carried through through bernanke carries through yellen and now donald trump is trying to get jay powell to adopt the same way of thinking but jay powell saying look we're already at 0 and negative interest rates are actually not a good idea and this is where the rubber meets the road this is where jim record would say ok we're at the last snowflake on the mountain and it's going to start the avalanche also. does not seem to love you know i was in a black swan was it was a 1st come back soup alan greenspan people seem to have forgotten right they they want to ignore this moment but after the financial crash he said oh i was wrong my ideology was wrong saving these these has been
a bad thing but everybody now that the party's on care like yeah we love the punch bowl. after the crash you said actually my thinking and ideology was completely wrong and he said i like gold well he went back to where he came from so. you know by the way again make sure you comment on what you think of the backdrops here's honey badger for the part 2 in the 1st half we just have one bear in both halves and new york city wall street sort of skyline and don't forget to follow max on real max real max kaiser on twitter not just max kaiser that's the museum so interesting but the real max guys are on twitter. well that's going to do it for this edition of the kaiser report with me max kaiser and stacy i would want to thank our guest stacy herbert if i can just on twitter it's real max kaiser or a kaiser report or stacy herbert or kaiser report stacey herbert and real max kaiser think twitter trifecta and so next time i go.
on the floor of the. way to go through a. ballot could still move it to i. was in this way got to dog. in the mother disappeared to see what the look like they were and i know it's still up and i think. this is the only thing that we do is music because everybody fights his way. to. the floor to the feet look out of his will to
persuade you that you have the ability to get to the. what i think is this is the that is a look something. so what we've got to do is identify the threats that we have it's crazy confrontation let it be an arms race. here in dramatic development the only. exists i don't see how that strategy will be successful very. time you sit down and talk. in the united states presidential candidates debate the future of the u.s. and the world. herbert dig into the burning questions of this election cycle. every week. student debt trade wars money
universal basic. and more catch up with what's front running this sunday exclusively on r.t. . the arrest of an alleged war criminal who lived in hungary and then france on a student visa reveals serious and falls in the e.u. which could allow terrorists in. one of the us presidential brings up more questions than answers as a result of the 1st big vote for the u.s. democrats and the late had a major role in the build up. in the u.k. unveils a bold plan to go green by 2050. whether the timeframe is feasible every household up and down the country prepares to foot the bill. to do spend the mandatory these days so hard to keep providing it's not. just with people.