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5 Nov, 2019 14:35

RT’s Keiser Report explores rise of ‘cash-burn machines’ & their role in US economy

RT’s Keiser Report explores rise of ‘cash-burn machines’ & their role in US economy

The Institute for Energy Economics and Financial Analysis reviewed 29 publicly traded shale oil companies in the US and found that $181 billion in cash has been burned between 2010 and 2018.

The Federal Reserve, which is providing those companies or the so-called ‘cash-burn machines’ with free money, does not understand why wages aren’t rising and the economy is so weak, says Stacy Herbert.

Those companies are “literally just burning that money… they are trashing it, they don’t respect it,” she says.

Burning cash is what’s been driving the economy, says Max Keiser.

According to him, the Central Bank is giving away cash for free. “They give you trillions and trillions of dollars if you are a friend of theirs,” he says, noting that it’s true of hedge funds and private equity funds.

“They get trillions of dollars from [the] Central Bank, they burn everything down, they are arsonists, but they get to keep a nice souvenir like a billion  dollars.”

For more stories on economy & finance visit RT's business section