tv Keiser Report RT September 21, 2013 7:29pm-8:01pm EDT
here on the kaiser report but aside from the bad and the ugly we've also covered the good so over gold and bitcoin the global insurrection against banks to rock your patient aka. move your money and camp a won't pay and the most interesting gas of all financial media mainstream or alternative and the best audience for sure that's you right stacy yes max and of course five hundred episodes of the kaiser report we have an audience out there including a looks like g c h q or n.s.a. they've been forced out of the dark by edward snowden and they're after only a little bit. people who put it that the time clearly here. there we go we started this show november of two thousand and nine four years later we're at the five hundredth episode and you know i'm going to go over some of the topics the things that we've seen over these years and where we have arrived after four years of this show now the most remarkable is the aftermath of the financial
crisis and one graph you see the blue line is financial profits are up fifty nine percent since the beginning of the financial crisis the red is corporate profits up forty two percent green is the s. and p. and that is up eight percent and purple is employment which is down seven percent the crisis was created by over financialization of the economy in the u.s. and around the world that is to say that the business of the u.s. and the u.k. became the business of printing lots of bonds and then manipulating those bonds using derivatives that's how the derivatives market got to be six hundred trillion in size on a global g.d.p. of about sixty trillion then you have the crash of two thousand and eight which was a crass of financialization securitization to get out of that crash the government decided along with the treasury and the federal reserve. bank to increased
financialization which increased the profits of the people who caused the crash to begin with and as we've said on the show along stacey people are not needed in an economy where the top two or three hundred people can just get money for free from the fed similar to saudi arabia they don't need the citizens of saudi arabia they just they just pump more oil and there is incredible poverty in saudi arabia in america now there's incredible poverty because the people are not needed their jobs are not needed their tax revenues are non-native because the bank of america the federal reserve bank just prints money and therefore it just creates a suit of wealth and income gap actually i'm going to skip ahead to a headline i have there because you mention the derivatives use of derivatives as a what form of wealth confiscation and wealth transfer schemes the typical american family makes less than it did in one thousand nine hundred nine in one thousand nine hundred ninety median american household made fifty one thousand six hundred eighty one dollars in current terms that means that twenty four years ago
a middle class american family was making more than a middle class family was making more than a year ago which is fifty one thousand one hundred seven now if you look at the chart you can see the past twenty five years that it rues under the median income rose under clinton but then what happened at the end of clinton administration max we had the repeal of glass steagall and we had the commodities futures trading act which enabled derivatives to go global they had the reclassification of derivatives as gambling instruments to legitimate instruments of finance as part of the global financial ization of the economy most corporations by the way are in the business of finance they're in the business of lending famously g.-mac general motors except us corporation makes most of the money and not for that g.m. not making cars a day that's just one example there are many examples but just take a look at the last ten years as what happened to one portion of the american population the black population they were told to buy. houses under bush they got
caught up in the subprime scandal which was a manufactured crisis they've had the biggest wealth confiscation in their history going back to slave days and they are now feeding into america's prison system which is owned by the same financialization the same securitization the same banks on wall street so the black americans have gone from slave to middle class back to essentially imprisonment and that's all served to the purposes of the top one percent of financialization eyes or so you mention one percent and of course the ninety nine percent listen to occupy wall street happened since we began the show we've covered that we were right there covering occupy wall street from the very beginning now here's a headline from forbes on the two year anniversary of that give back yes it's time for the ninety nine percent to give back to the one percent and they say imagine the effect on our culture particularly on the young if the kind of fame and adulation bathing lady gaga attached the more notable achievements of say warren buffett or if the moral priest showered on mother teresa went to someone like lloyd
blankfein who in guiding goldman sachs towards billions in profits has done infinitely more for mankind well this is a market fundamentalism just like america is now hiring al-qaeda in syria to make way for a pipeline for saudi arabia then forbes magazine points to a financial terrorist like warren buffett who's in the securitization business financialization business who has done more to destroy the american economy than almost anyone except for lloyd blankfein they've all been caught and gazed in massive fraud they've had to pay small civil fines as part of rigging the judicial system and the legal system with the money they make in this financial life ponzi scheme and forms magazine is a shameless promoter of market fundamentalism or market terrorism this is an article that said in pinion piece the commentator an outside commentator who posted this on there he's an iran fanatic so he's looking at the profits the so-called.
profits that lloyd blankfein has stolen from the rest of the population through fraudulent warship mortgage backed securities to front running markets through high frequency trading and he's saying that this is in an absolute objectivist fundamentalist way that the profits are all that matters and the fact that he stole it from you from your granny tough luck that's that's capitalism and his version of it well we've seen this with other fascist regimes and as the wealth confiscation gets more pronounced those who are doing the stealing whether it's the nazis in the thirties or warren buffett in the twenty thirteen period they scapegoat the losers so the losers are being scapegoated i've already mentioned the black community america's being in prison a record amount of the prison population in america is the fastest growing population the prison population in absolute terms is higher than any other country in the world and that forbes is assisting in this scapegoating of and pretty soon prisons become concentration camps and they become extermination camps that's the
final solution to the debt bomb created by the federal reserve bank mark my words you'll see america in the next five years the other thing that we've been covering is the global insurrection against banker ochs occupation but of course that is nothing has been able to stop the rise of the banks or class it was as we see in the numbers that we just cover the median household income is down the wealth and profits of the fate of the financial sector is up lehman's legacy of inequality james saft of reuters when lehman went down five years ago it set in train forces which could easily have led to the failure of many financial institutions face of the possibility of take a large sways of the banking system into effective government control first the bush and later the bomb administrator and chose instead to shelter institutions and executives from the consequences of their actions that involved creating a variety of policies which subsidized large banks and helped to dig a moat around the businesses this went hand in hand he said with monetary policy and put this in the context of the guy who wrote a commentary on for. forbes dot com where he's saying that lloyd blankfein is
profits make him a holier than the ninety nine percent when as james saft envoy here is pointing out is government policy it's manipulation through the fed that is giving me that has built a moat around goldman sachs and enabled them to profit at the expense of everybody else but this is a failure of all markets signal big due to market fundamentalism the collapse of lehman was a market said no that should should have alerted the government and everyone participating in these markets that their massive reform was needed but instead they interpreted that market saying bill as a way to make the situation much worse again i made the comparison to theocratic fanatical religious extremists who misread their fundamentalist texts and everything they read suggest that they should blow themselves up and other people same thing as lloyd blankfein and warren buffet everything they read says i should blow everything up i should commit mass terrorism that's the message that they get from the fit from the price signals that they receive it's
a breakdown in capitalism unfortunately and this predictable because unfortunately the price of money is close to zero and access to money is ubiquitous by the stock receiving america ruled by the least qualified not to mention the kleptocracy on wall street this is again what they point out is that there's a huge subsidy that has worked in the last five years since we started doing the keiser report there's a massive subsidy and that these banks goldman sachs j.p. morgan any of the other surviving banks they know the investors know that they have a guaranteed subsidy is that the government will bail them out no matter what and he points out we also have an effective subsidy or rather multiple subsidies to an industry which has proved itself remarkably immune to the power of technology to bring down costs and improve products despite what the guy in forbes said is not bringing innovation and efficiency to our economy as actually slowing it down it's going king up the wheels of capitalism well our frequency trading which. this is
a technological innovation finances used to steal money from the new york stock exchange you put it computer colocated next to the floor they stock exchange algorithmically a front runner trades on the exchange and that money goes into the pockets of banks like goldman sachs with zero risk that's siphoning cash from the economy had zero risk so naturally people are increasing the rate of poverty there's an increasing rate of poverty in america if you have a bank that's actually got a computer parked next to the exchange that siphoning off them funny then you're going to have a lot of poverty out there and of course you have to add let's scapegoat the people that were victimizing to make it a true fascist trifecta thank you lord like life so finance went from fifteen percent of g.d.p. in one nine hundred eighty to twenty two percent today and so they are able they're too big to fail they're able to get away with massive crimes and and why is i why are they able to why are they able to scapegoat people and part of it is the media because you can't have these crimes without propaganda and i saw a tweet this past week from dennis kneale
a fox business and he says hey guys another day another fine on j.p. morgan what's bugging me tweet us is the government's assault on j.p. morgan going too far is the government assault on j.p. morgan not the j.p. morgan's assault on the american population the global population to libel rate rigging to miss a pub on rate raking through the collapse of jefferson county through the front running of markets through manipulation of silver gold energy markets no j.p. morgan financial terrorist embraced by fox and c and b c just like they now embrace al-qaeda to fight their wars and in syria you know twelve years ago it was bad oh nine eleven blew up other bad now they're out they're a lovely friends we want them there on the i'm so not surprised they don't buy one of these guys to run the bank the federal reserve bank just go out and hire a terrorist out right drop the facade hire hottest to run the federal reserve bank of america warren buffett you've got influence all right stacy ever thanks much for being on this very special. five hundred episode of the kaiser report five hundred
more max. all right states over the second half a whole lot more. told him a language as well but i will only react to situations i have read the reports. put the no i will leave them to the state department to comment on your minor point. to secure a car is on the docket no. thank you no more weasel words. when you made a direct question be prepared for a change when you punch be ready for a. pretty tough speech. down to freedom to cost.
a. lot. from around the globe. local. t.v. . play. and. play. they just leave the. economic ups and downs in the final months day the longer the deal and the rest look like it's going to be a single day every week because they claim the olympics. played right on the same place. the first tree limb and i think the term. play. on our reporters let her play against the.
libyan mullins. led. welcome back to the kaiser report imax kaiser with this five hundredth episode of markets finance and scandal so i'm out to go to ecuador and speak with professor steve came who was on our fourth episode of the kaiser report so it's time to check in with professor king welcome back to the kaiser report server makes a lot of being able items are still to grow the most popular show on the finance and growing around the planet professor king has been five years a sense lehman brothers collapse are we any better off today is the financial system more stable no way no way that is a great tragedy of this is that this would have been
a final stall blowing the debt bubble and i mean private primarily message for the global economy when the crash happened and because the politicians become so i walked up on the belief that yukon have a viable economy that you got a lot of financial sector expenses find revolving the financial parasite rather than reviving the economy to parasite it actually brought to its knees so in fact we've now got a sow's back on another unsustainable trend probably of raj going private new america for a while feeling the same sort of thing without it would reverse i go to the sale oh see that go forcing it another ball out of it the same apparent happening in the strike or does he simply have low interest rates so that blowing bubbles one small and the system is much more fragile which is carrying a much larger level of good wife than it was before the last crisis began ok now you mentioned something there that we stacy and i talked about the first half that is that the lehman brothers collapse is a price signal and if the capital system were working normally that signal would
have been separated as we need to reform the system but instead that price signal was attempted as we need to double down again on fraud correct i think it's correct and it says ruefully. i often blame the private sector if it is buffalo but i blame the thievery of the public sector a fool not doing what it should have done and saying will you guys you could go straight to your ideas would side with as many would day. of the economy and it's now time you right across are doing it your way you wiped out your real one holes go your paper you post and we're going to put bill black on you and put quite a few in jail through it was clear that i had to be involved in what you did none of that happened i became totally psychic fanfics of the financial system so i just talk about the military industrial complex aching over america i would actually happen is the political financial complex the second either not just america but the on top climate imagine the you blame the private sector more than the public
sector the public sector of course being the government now when you hear debate about this on the mainstream media you see it or you hear a lot of finger pointing so the private sector will say look we wouldn't be gaves of this massive fraud if the public sector or the government didn't didn't allow us to engage in this fraud in other words if you want to stop then you need to pass laws to stop us then the government or the federal bank reserve bank in washington will say well we can't stop the fraud because if we do it'll cause a problem in the private sector all the banks will collapse so we have to keep the fraud going with artificially low interest rates and quantitative easing they keep this ponzi scheme going so there is a spanner pointing by the way everyone in government is getting fabulously rich everyone in congress has participated trading on inside information the net worth of the average congressman senator every one of the administration has doubled tripled quadrupled every of the bankers in the private sector same thing their net
worth of doubled tripled quadrupled everyone's making money in this unholy alliance this fascist alliance between government and wall street and all the one holding the bag of course. are the average person who's not part of the kleptocracy but they believe they are participating through the housing market particularly here in britain where george osborne believes that by re-inflating the speculative housing bubble he will bring social equity then many back to the economy of britain is this a good idea professor steve kane it's a long struggle we're going to show in time this is a great tragedy max because as you say it's obviously the politicians in the financials that made the biggest bottle out of this process we went to profits if you get sucked up by a housing bubble they think they're getting better off because only those who got houses were to go to their guy and for coming out ahead what you get is social division coming out of this and ultimately that lisa's social breakdown as well so
it's assurance and tactic it fools you for a while and it collapses in a heap of a later stage and we're back in the same bloody stock again so it is a great tragedy that there's a chance to reform the financial fraud of capitalism which senator whitehouse might make more money out of the financial form of capitalism and to even further involve the finances in the process what we've seen over the past ten to fifteen years a global bubble and bust economy driven by low interest rates we had the asian financial crisis we had the dot com blow up we had long term capital management we had the housing bubble subprime bubble and burst now we're into what looks to be a sovereign bond government bond bubble but there is a a rotating a musical chairs a bubble and bust and we've talked before about the real estate market in australia and the real estate market in canada it looks like mark carney is old country canada is either it right in the middle of or about to experience a major real estate collapse or thoughts yeah i think it's sort of it's good to go
and that's the bubble looks like a good bit of extra makes them a lot some of the debts are the most rigid numbers i was still dropping process off . when you when you look at the level they've reached a kind of years now and we've gone from being. loaded country and norwegians to a to a medium to high good country and over the years and you always have a boss at some point they can risk you again is a very skewed the american both of us now rising once will but you have to have a crash and they certainly have been trying our show a while ago and you know it's a skyscraper and crying and crying country so in a sense of having developers that massively articulated all competing to be the first gods were the front tool and i think good they won't be the last one to have to are going to open the door to the bank and said i think about this walk or david it may be quite another year ok let's talk about one of your favorite economists i mean minsky and i should point out your book debunking economics is a must read for anyone who wants to get a good picture a good view on exactly all the dimensions that are contributing to this massive global fraud but let's talk about i'm in minsky for
a second because i'm immensely of course the minsky moment is something that he came up with and it has to do with the self referring bubble mentality so we see it right now in the u.k. because house prices are up the people who are part of the bubble believe it's been due to their own ingenuity and genius b.a.v. or they buy into the bubble this is part of the minsky moment this self-referential what i call financial narcissism where it becomes patently obvious that the bubble must be real because i'm part of the bubble and this is part of what contributes to and there's different levels of those different parts of the minsky moment cycle i wondering if you could review that for a moment so we can have an idea of where the u.k. is now in this delusion well if there's a good why bring it next because one thing we skied spike of at great length was what he called euphoric expectations and he said if you have a capitalist economy it's always going to be cyclical nobody believes they'll be boss even without adding the finance sector on top of when you do have the finance
sector on top people get in a bit and might borrow too much money they've got to refight some of the during a slump so the economy slows down and listen started to get sentimental slump like a great depression or if a government comes in and does this ridiculous spiral out of the financial. like i've done this time around because i'm the only stossel stabilize because it starts to stabilize people stop as they get the previous crossers so they're willing to borrow money one small so the bubbles out cycling off once will and once the downs what's actually driving and climbing out is the rising level of day and everybody who is dropping by selling assets on a rising market cools by rising dead as you cite financial noncitizen that because all they genius there doesn't is really the fact of what is borrowing money and buying second as well for each other that drives the process up so they have to decide where they completely euphoric and they got absolutely total rage and in the ivory coast many of the profits they take on are actually losing money and then what happens once i saw some lose money there's a lot of our own money just tight to have to stave off bankruptcy making keep on
doing it one of the sides is going to be for someone to go slightly too long they miss one and bang that bankrupt and the whole thing comes crashing down once more and that's the world that the politicians in the financial sector are giving us a lot of the night and sixty's when we were talking about taking off to the moon in rocket ships we're not taking off to the moon in day. yeah i saw an interesting statistic today and i will quote this paraphrase that a bit but the house price average house price in the u.k. is increasing by one hundred pounds a day whereas the average median income in the u.k. is roughly eighty eighty pounds a day excuse me but you see right there a huge disparity the house prices are moving up quite a bit more rapidly than what people are being paid on a daily basis additionally i saw an interesting statistic that said that in the u.k. over the past several years you've got your ten thousand dollars a year you have in the bank has lost purchasing power down to the eight thousand
pound level just over eight thousand pounds so once again they say there's no inflation they say they need to keep interest rates low they say the housing market is not a bubble and yet the average person is losing purchasing power they're not participating in the bubble and they're and they're creating social unrest so this is a recipe for i guess either as a societal collapse or societal of people where your thoughts. yeah the trouble of our societies dies we're known years old in office as we used to be back in the not in thirty's and forty's because of this stuff that happened back then when you had strong trade unions and militancy in the working working class and you also had let's listen security you couldn't afford to put up with it people would be on the streets to get actually political demonstrations against it these days in some way social security that's the bottles as moscow that level of political revulsion that people should have of what's happening right now so i could organize the politicians continue getting away with it the outcome ultimately i think is more
like turning japanese without the benefit of being jeff an ace so you stop getting a stagnant economy because there's this process can only work for a short while before it falls back into an all the slump and you didn't have usually possibly day highs of slow growth meaning people convert into the workforce in the first place they simply combine houses and over already ready run out and you don't get a depressed society a congenital depression i think is more the outcome rather than you know explosive reaction to it i would like to see the explosive reaction but the trouble is normally when those things come they don't come from the people they come from a fascist movement and i think we're more and more likely to see that happen out of sign and frankly this is the same way you'd look kind of crap back in the 1930's it just happened foster back then right well we're already seeing it in grace with the rise of the name fascist party challenging the i.m.f. and other financial terrorists now i know you're working down in ecuador at the moment steve keen so your thoughts on emerging markets how how they done in the
past five years into this debt crisis and i've got about a minute left. yeah they do some of the budget markets themselves appear to be getting back into a bubble again certainly shiners and evolve with it has more of a capacity with the state's finances and it strikes at the state that bubble going indefinitely said i wouldn't gamble on this one it will actually find pretty interesting progress to the country mary where there's still the stuff i'm trying to stop themselves being taken out of by the financial sector and doing a lot of attempts to build in a diety of genuine capitalism down here rather than the fraudulent stuff that's running and waste so there's some glimmers of hope in the do it in emerging markets but it's not gamble on them let's get back to being a really productive industrial capital society one of these guys all right well save came thanks for visiting us on our five hundred episodes you were there on our fourth episode we've been tracking your work your career now for a number of years and it's great to have you back on the guy's report. right to still be in touch with you because i love you both you like and that's going to do
it for this edition of the kaiser a four with me max kaiser and stacy herbert i'd like to thank our guest professor steve king author of debugging economics if you like to contact us tweet us at kaiser report and we're looking forward to another five hundred more episodes for you it's a lifetime backscatter saying by all. unexplored and talk to go what is it in this i see expanse that attracts the people who come here. now i only go to the dontcha. and enter into. a new generation of polar explorers is coming. we have a new group of specialists here now all of them are young how are they going to get along with each other i don't know. but i used to be
a bureaucrat. seriously. what adventures await in this mysterious land where do they live want to eat and want to be actually doing it and talk to go. for. the most complex human to. answer. to the phenomenon of friendly fire probably extends back to the invention of gunpowder. a bunch of people don't want their families they're really us people. right reading.
this some of them shoots my brother in the leg not intentionally because of it because it was night times four in the morning even the best even the best shoulders. are going to make mistakes this is this whole idea of brotherhood and author. and camaraderie in this sense it was in this context it has absolutely no place. to least be cool language. programs these documentaries in arabic it's all here on. reporting from the will talks about six of the c.o.r.p. interviews intriguing stories for you to. see in trying. to find out more visit.
is syrian government completes the handover of chemical weapons dated to a hague based watchdog while moscow says its approach to assad may change if he doesn't play by the rules. top u.s. officials demanded israel explain why its military seems to truck with emergency aid for palestinians and reportedly mistreated european diplomats accompanying it. dozens killed in a suicide attack by bombers at a funeral in a shiite neighborhood of baghdad the largest single assault on iraqi civilians this year. now less than a year until scotland decide whether or not to separate from the u.k. but as the days wind down the rhetoric is heating up with oil the centerpiece of the disagreement.