tv Keiser Report RT February 4, 2020 11:30am-12:01pm EST
currency madness well speaking of the virus that we could use 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 bad 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 somebody like boeing which is too big to fail is the $1.00 aeronautical engineering company in the united states and 7 percent of our exports it's got to survive certainly more than jamie diamond's j.p. morgan so breaking boeing post 1st annual loss and more than 2 decades a 737 max crisis continues now sometimes max you are a broker at bad news like that like the 1st loss in 20 years normally people would say oh 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 to 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 and 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 but 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 recently have
pointed out in recent episode they fired all their engineers their 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 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 chunk 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 now blowback 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 of 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 into. trading what used to be illegal look at america these 5 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 then the whole that it creates a viable society that people are striving for the public domain but that's all been monetise 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 mention 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 intervening but that 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 the 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 they don't get funded but if you are someone like a wall street banker that's openly. pilfering and grabbing assets and doing so at 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 ruled 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 republic hundreds a 1000000000. since the end of september and this is from
a guy named rick which he sounds like it sounds like somebody who would know how to put a chart together right that's the name of the guy who did chart shows the stock market going in lock step 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 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 a hall ics 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 what do you mean a ponzi scheme that's how it's like this a bad guy like made off and he was like well they might not be intentionally bad but it's 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 or well remember the federal reserve bank is as much a government institution as federal express it's not it's a private bank servicing private private banks are engaged in a massive fraud as we say now that something like this corona virus is a direct result of the responsibility in central banks and people are dying by waves of it the most cruel all right go take a break when we come back much more coming your way.
in this community there are people who believe that it's ok to sell fracking food it's really hard there are no jobs and you see that i've got kids that ask and as a parent. i can come up with lots of arguments there's a lot of conflict in the game between the close of the conflict i would say overall is around money and most of their money is made. up so close well you know the children. each other is good business the state of california alone makes 6000000000 dollars a year of prison complexes you get some point in your life where. you don't care anymore nobody cares about your so you don't care about anything. thinking of getting a new phone the ones we got in here shows no problem was as he didn't know until he
was trapped in this tiny little wired how much are you going near the 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 courtier the rain the snow the funder nothing they have no protection. because you . know it's ok. across the us cruel puppy mills are supported by dog shows and pet stores most of the puppies are coming from this large scale factory farming kind of operations are being sold in stores even joined a good businesses are involved like agoa mom santa there has been a shocking amount of organized opposition to adverts to increase the standards of care for dogs bred in commercial rating for so many most of that opposition is coming from huge agricultural groups and industries that have nothing to do with
and then we'll ignore them so anyway for trying 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 is very fascinating stacey you know we ended the 1st half when we were talking about ponzi schemes guggenheim is menard 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 that 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 the 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 dollar ponzi scheme that's jeff and paulette karpov so they he stole $377000000.00 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 the biggest hug his front of 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 is 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 dissent jimmied by newspapers well just this week last week 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 bitcoin and critical of technology but was by news papers as early as 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 he's talking about he gets free money from the banks 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 on vacation homes and 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 he just is full of old newspapers and magazines and things and he's a curiosity 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 some 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 way however he behaves the fact is that the system when you have a system whereby somebody becomes worth 120000000000 say like jeff bezos 120130 1000000000 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 a 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 feel to make the guilt go away and now they can 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 like a parent buffett with us 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 run 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 chase and touch show the german guy by talking about comparing the contagion as we started at the top of the show with the corona virus and compared it to financial virus and contagion and at
the same time but now it's 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 couple for a bit but then they always sort 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 the 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 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 not 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 desks 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 patients there are 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 of the fed not to try to take the punch bowl away when the party got frothy but to keep feeding the punch bowl ad infinitum and forget crashes and that was carried through through carry 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 it's going to start the avalanche also. does not seem to love you know i was a black swan was it was a for combat 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 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 had 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 kaiser 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 station over and real max kaiser thing twitter trifecta and so next time i go. up and i'm on the flip side is the way to go through a food. bank they could still move it to i. was in this way got 2 dogs nothing on the other dismiss the work that they and i don't think is the authentic
that. this is the only thing that we do is music because everybody it's a useful way to. the floor you can use all the food out of this will persuade you that you have the ability to put a hold on the. what i see is this is the that is a company. so what we've got to do is identify the threats that we have it's crazy for indication let it be an arms race is on offense very dramatic development only personally and going to exist i don't see how that strategy will be successful very
critical time to sit down and talk. in this community there are people who believe that it's ok. it's really hard there are no jobs and you see that i've got kids that ask and as a parent. i can come up with lots of arguments and there's a lot of conflict within the game and between the teams most of the conflict i would say overall is around money and most of them money is made. close one on the children's cosimo each other is good business the state of california alone makes $6000000000.00 a year of prison complexes you get some 20 alive where. you don't care anymore nobody cares about your so your care might anything.
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