tv [untitled] March 17, 2011 4:30am-5:00am EDT
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video. now of the song seemed to pound desperately trying to protect him from seeing the nuclear reactors dropping seawater from the air and water coming trawling to prevent takes a meltdown. with only fifty workers remaining to be stable no applause tugs the new revenue keel polishing one from why it takes them so long to react to the atomic danger on the folding it's of time. the us says it's along to either mounting problems of the machine of the troubles megastars about the drawing board
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of the barricades like the palace station calling. it all the news libyan opposition supporters call for an end to the lives of the country and russia question is for us since my residence in the us is gets to make a new. time now for martin stacy to reach out the real story behind the week's made to find out. max kaiser this is the kaiser report yeah you know them folks on wall street and around the world the banking industry love a good disaster is amazing they can issue trillions more bonds and pocket themselves billions more fees let's get some more details from stacy herbert max the first headline we see the true heart of disaster capitalist larry kudlow the
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values human life with the japan earthquake slit the human toll here it looks to be much worse than the economic toll and we can be grateful for that and the human toll is a tragedy we know that but these markets are see all these markets right stocks commodities oil gold there is no major breakout or breakdown is the traders tell you half the world is very much a part of this because oil is moving lower they feel as though this is good news for the u.s. larry kudlow and sandy say are genocidal maniacs they would love to put people in them burning for a profit if they had a chance they would take us what's public larry kudlow because these are these are . despicable vile something gross to the part of your show larry kudlow did apologize via tweet saying i misspoke let's look at the true heart of our global financial and economic system and all the remaining headlines here saudi troops
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arrived in bahrain to suppress protests the saudi intervention came two days after u.s. defense secretary robert gates visited. and held talks with the king in which he said he urged them to undertake rapid and significant reform now robert gates also visited cairo when we were there and soon after all there appeared again but i don't get is america spends what a trillion and a half two trillion a year on military take more than half the tax take and spend it on military toys they occupy countries all over the world they send unmanned drones into pakistan afghanistan iraq kill civilians left and right. they've got a clear target in tripoli one unmanned drone take them out but they say no we have to have a cave on this we need to deliberate on this so is it just as tony blair would suggest you only lift a finger to do anything in this world if you get a big payout from the oil industry and that's it shameless well there is a huge you know interconnected financial link between libya and europe so perhaps
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that's why he's not doing that but in bahrain the saudi troops came and the day after the largest protest in bahrain in which they shut down the financial district so that is always very important to whether or not for intervention arrives people are waking up to the fact that the terrorists are the bankers and unless you take the bankers out of the out of the picture you're going to be living in a ghetto now you have often mentioned the digital economy and the role of the internet in these revolutions happening throughout the arab world these are the controversial satellite photos that set off protests in bahrain so these are from google earth and bahrain's oppressed and overcrowded shiite majority began using google earth to view palaces and other states that make up ninety five percent of the country as these images churned up discontent the government blocked google
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earth but as you can see from these images here this is a p.d.f. that was created from the images that they captured before the iranian government basically bans google earth from bahrain but you can see that the shape majority is forced into the little five percent of this already tiny oil rich kingdom you know . the transparency that comes with the proliferation of the internet and social media has given people the fortitude in the vision to effect regime changes and rightly so and if you look at these images again you'll see that they highlight the golf courses yachts. horse tracks these are all that royal palaces the many royal palaces throughout the country in the ninety five percent of the land that the royal family occupies they also highlight you know these big palaces they often ask how did he get it because according to the constitution of bahrain that the resources of the nation are the ownership of the state the state owns the resources
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the people own the resources but it looks like from google earth that it exposes the lie that in fact a small family occupies an owns ninety five percent of the wealth of the nation so we have these royalty and these oligarchs around the world controlling ninety five percent of the wealth of most nations or thereabouts close to it. and the peasants fight amongst each other for the little scrabble heaps of it and in fact in bahrain you have the shits are split in half one half is negotiating with the monarchy and the other half isn't you know this brings us to america wisconsin firefighter spark move your money moment. so on the day that the bill passed the wisconsin assembly effectively ending fifty years of collective bargaining in wisconsin hundreds of firefighters walked across the street from the wisconsin capitol and stood outside the marshall is lea bank and i bank and one by one they close their accounts and withdrew their life savings totaling approximately one hundred ninety thousand
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dollars so these hundreds of firemen and their one hundred ninety thousand dollars now the bank itself why they were targeting banks is this bank is one of the biggest backers of scott walker the governor and they the bank received two billion dollars in tarp funds they have not paid this back the bank is about to be sold off to canada into which of course. in this transaction something will happen that they'll never have to pay back the u.s. money laundering so this is why they protested this bank of course well it's the sound of want him clapping in other words we're going to move your money it's going to take your money out you've got to do something with it you just can't put it into another corrupt bank you've got to buy silver bullion with it this is the only way to crush the banking system because they're over leveraged in their silver shorts they've sold so or they don't know if you take physical silver off the market you crash the banks principally the biggest financial terrorist of the world or j.p. morgan but then i poked into this obviously they've done
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a deal with tarp they took billions they gave back nothing they're leeching from the community and the people who are trying to work a decent living in that area are rightfully insurrection go forth from this article is a very bizarre little fact put in here i remember the peasants are tearing each other apart half of the peasants and in wisconsin are against the peasant workers in the public sector unions the firefighters the policemen and the nurses and the teachers they're against them a tunnel in the m. and i parking garage links to the capitol basement dubbed the rat hole to the locker palace the tunnel always used by governor scott walker to fair. every lobbyist into the capitol building to hear is budget address well the capitol building was shut down so this bank has a secret tunnel that goes directly into the capitol building a private corporation has a direct link into the capitol building where they don't have to go mix with the riff raff and who knows and lobbyists are being funneled in and out and yet the
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people are out there fighting each other the peasants are fighting each other and our fighting to stop this corrupt system where we've got a little bit let me get this straight the person in the street fighting each other i mean well there's a total there's an underground tunnel from the bank to the capitol building that's correct this is what this article says. so they're just they're just doing the money laundering and they're going they're going running in there in their almost criminal activity through an underground tunnel between the banks and the capitol building in the presence or outside squabbling with each other both here union you're not a union republic union you're not a political union one of these persons waiting for and then you know the half of the peasants are fighting on the side of the monarchs and all of arks well in the bill that was just passed the governor may sell any state owned heating cooling and power plant or may contract with a private entity for the operation of any such plant with or without solicitation
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of bids for any amount that the department determines to be in the best interest of the state so going back to bahrain where ninety five percent of the assets are held by one small family now this guy could sell to koch industries for example energy industry company they could sell it to them for any price they deem is a good a good guy a good sell a good deal for the state it's also so it was there's work wisconsin bahrain or dublin ireland of course they just got a new deal with their new government where they would start selling pieces off of that country so their creditors for no reason other than to make a few guys rich so suggest a corporate architecture and people are revolting against the corporate patient but the so far they have no scalps they have no wins that hasn't been a regime change except in tunisia and egypt those are the only two successful regime changes we've seen in the global insurrection against banker occupation we haven't seen anything in europe yet you know portugal looks good ireland looks good
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greece looks good i think one of those countries should get a regime change soon in the u.s. you've got the states scott walker is a mubarak of the of the midwest i mean these you should be replaced immediately just going out of the capitol building stand out there with a pitchfork and whatever and just wait until the guy comes out but max he's just one of these presents he's a peasant that's. they operate they take they divide and conquer the peasants they give him one hundred thousand a year who knows how much he makes and then we can feel him poor and david koch calls and even if it's a fake david koch and he feels like an important guy and he'll squash and destroy there's a lot of peasants out there that's firefighters out there i'm saying these guys to lose them ok overthrow. scott walker and then move to the koch brothers then move to new york fed then move to the further washington get some wins on the scoreboard get some points on the score because right now it's present zero monarchs our own employees they get all the points presence of god nope i'm speaking of winning charlie sheen secret silver investor
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a person writing under the name charlie sheen the disgraced sitcom actor they call him follow the comment with the commodity futures trading commission last week and he recommended the agency adopt a more conservative position limits on derivatives tied to silver it's not as though silver bugs already a crew prone to conspiracy theories about speculators of market manipulation needed more reasons to worry but in charlie sheen's march first memo the writer asked to see if t.c. to readjust its proposed position limits and silver sheen says that the current formula would result in a position limit of over five thousand contracts for any single speculator the memo writer said that the limit is equivalent to twenty five million ounces of silver only three mining companies worldwide produce that much silver each year right charlie sheen is part of the silver liberation army charlie sheen is supporting the new world disorder charlie sheen is welcome on the show i'll be more than happy to
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have us my guest to discuss these and other topics. i reached out to his people through my people i haven't heard back yet but it's early in the call ok thanks so much for being on the kaiser report thank you monks when i come back i'll be talking with michael betancourt all about a really interesting variation on the theme of capitalism don't go away. in india g.'s available to the grand central shirts and the taj mahal in the us and the bowling coach president bush they would presume none of beatriz's clothes are going to go on
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a whole how to surges simmers hotel kind of hotel room closing the radio believe it should be hotels church in new delhi who took the babyhood to carry a collection among the clothes of. maidens hotels. pose a movie to medicine it was promised to taper cush time. i would go back to the kaiser report time now to talk with artist media has starring in critical theorist michael betancourt who writes about the digital economy michael welcome to the kaiser report thank you i'm glad to be here and i michel you have point to the phrase ad no to logic capitalism what is it it's the idea that we're now living in a capitalist state visit at least partially supported by misinformation systematic just information and
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a kind of. general confusion of what is fact and what is not what's physically real but is immaterial ok so when people talk about the efficient market theory for example that prices reflect all known information using your thought process we should be talking about the inefficient market there are that prices have to incorporate this ag not a logical model which is correct me if i'm wrong but it's the the study of misinformation it's how misinformation is pushed into the system as a quantity unto itself correct it's actually a little bit more than that it's not just the pushing of this information into the system it's the specific construction of misinformation in order to deceive the system in order to drive say markets in order to make decisions that would not otherwise be made to confuse the ability to make these decisions but then how does this differ from let's say propaganda propaganda it is not true when we're talking
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of black propaganda that's propaganda created to deceive edna tolle it doesn't set out to create this information it sets out to create doubt about what is known and it does this by following the standard procedures and simply arriving at different results we usually because it begins with a different set of assumptions or takes other values into account and this sounds an awful lot like what we saw during the one nine hundred fifty s. and sixty's when the cigarette companies are trying to push this idea that actually cigarette smoking with healthy i mean is not an example of this and that's actually where the term was originally created by professor proctor. he was studying how cigarette companies raised confusion about the nature and the risk of their products and so that's where this entire framework originates in a sense expanded in much the same way that everything's in strict standard. so now
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we see not just cigarettes but the risks associated with almost any product we could choose or any commercial or financial investment that we might encounter there's a certain degree of this involved in this presentation all right let's move on to the digital economy and digital capitalism something you're right about a lot what what attracts you to this topic what the bulletin on some of the highlights there what attracted me to it is the fact that so much of our economy seems to be digital now you know digital has infected let's say if we want to think that is a contagion infected most of our culture and the initial approach to this that i was interested in was the question of digital rights management and how digital rights management seem to be a necessary evolution whether we want it or not with a real like it or not a necessary evolution of how digital technology has functioned as we've had it since the one nine hundred eighty s. when the first commercially available digital commodities became available and so i
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was asking that question any voltage there is in the course of doing the thinking and the research into something that i call the aura of the digital now this concept is kind of commissioners because we find it absolutely everywhere the idea of the or of the digital is simply that. when we deal with something that is digital or we do something that could be digital the first thing that happens is we forget to think about the physical costs and the physical supports and all of the material things that go along with having a digital connection we don't think about the internet backbone the hardware the supports the end of it we don't really think about the costs of maintaining that but we only think about is oh look i can click on this thing here i can download whatever it is digital thing is it derives it's beautiful but it's just as good as all of the other digital copies and so it doesn't seem to cost anything but there
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are very real costs in there and your of the digital serves to mask those what happens is this are of the digital is not just concerned with cultural products it's actually something that extends throughout our culture and has literally expanded since the one nine hundred eighty s. so we get something like the housing bubble that just burst in the last few years and the new possible bubbles in say i mean a simple bonds or government bonds or treasuries depending on who you are listening to and all of these potential bubbles and the ones that have already burst like the housing bubble or the dot com bubble it's a savings and loan bubble these bills are reflections of how there is a rupture between the immaterial concerns of the art of the digital which it describes and a kind of paradoxes that describes let me walk through an example of that sense i've got this in my mind my brain here if somebody is let's say creating
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a digital farm on farmville which is a game by face broad and they have a digital barn and they use a digital currency they're immersed in the digital space and they tend to take that digital or a thinking and apply it to their actual house and they fail to see that their actual house has real cost involved in that house and i think you also make a connection to labor and how labor as. as pet fit into this equation well the problem here is that when we shift to a digital capitalism following on this planet for basically expansion of the our of the digital but we shift from a material physical capitalism one that's based on actual production and wages and labor and all of that to an immaterial on the danger and this is what i think it's happened is that we've had this transfer from this digital realm into the less then digital realms such as the financial markets in the form of financialization because financialization at a kind of basic level is
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a reshuffling of immaterial commodities if you take say the gold index and you generate a commodity based on selling futures based on gold and exploit it in the physical gold so you end up making money based on something else that may not actually be connected to something physical that actually there's another kind of exponential shift here where you take it a step further and you start chopping up what are theoretically tied to physical commodities and credit default obligations for instance like mortgages and you securitize things and then you securitize your securitized investments and you chop all of this up into very very tiny traction and then you sell these trenches as bundled things and you make money not based on the objects that they're connected to but on the chopping up recently reassembly and selling which is fundamentally
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a semiotic procedure a matter of language if you're going to pillaging signs that is the image aerial dimension owed immaterial capitalism and when that happens you've essentially removed labor from your market if you automate your market with high frequency traders that follow algorithms and you eliminate all of the human elements to this or you minimize them as much as possible which is what has happened then you have this fully autonomous automated immaterial version of capitalism that generates values through circulation rather than. true the actual sale is something that is tangible dishes course where you could collapse right and you need some accreditation from institutional players in all this for example the federal reserve bank other investment banks rating agencies and all these players and the government has to give these things a seal of approval and give them an a rating or an a plus rating even though what they're exchanging back and forth is a fan phantasmagorical representations of
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a digital trough as a derivative of something that was a con consummation and somebody is imagination over lunch before they went out for a couple of martinis and they call that a deal they give themselves a huge fee but at the end of the day they're just programming the computers to steal is not correct i wouldn't necessarily say steal why not but why not because for example our pregnancy trading is a siphon siphon capital off the floor of the exchange for no work as you point out it's fully automated they put in no labor they steal the money outside not stealing the reason it's not stealing is that everyone involved is profiting from this process the idea of how do people in america who are having their currency deed based because of the stealing that's going on by goldman sachs and j.p. morgan by using high frequency trading in a foreign exchange how come they are not participating in this because they're getting penalized by that there are victims of the us i just don't think that the stealing is necessarily the right bert's for us it's something else. oh stealing
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balls that there is some kind of physical commodity it's being stolen that the currency is being debased implies that if we didn't do this the currency would be sold and and the whole problem here is that the currency itself is disconnected from any kind of physical value it exists as a debt against future production rather than a store of value and this all of this comes back to the immaterial basis that we're now living in so yes in a sense you could say that they're stealing in a greater sense they're not really stealing because there's nothing to be stolen right so the people who are victimized by this they should take solace in the fact that when it all started they weren't worth anything to begin with basically yes i know that sounds terribly prefers the reality is that this is an unsustainable system and that the inevitability of its collapse is been there almost from the beginning because the entire system is based on a currency that is not based on anything it exists only in relation to other
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currencies insult a symbiotic let me just get into the perversion of this is obvious to those who can see how these machinations work and what the perverse about it is that people who are out there in the streets in wisconsin fighting for a few crumbs from the table don't understand that what they're fighting is an illusory model that doesn't even exist that they are screwed and they're scrambling for virtual crumbs essentially they're even understand how how perverse the system is they don't even have any comprehension of how far away they are from the nexus of the capital producing mechanism and then they larceny the digital are saying that's going on that's perverse yes this is and what makes it even more perverse is that what they're fighting for is the continuation of basically their entrapment that's the truly perverse part of this is that the. the powers that are currently
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acting and that are causing these riots protests rebellions whatever you want to call them they're basically fighting for their own survival and we shift that's happening is for various because we're driving towards a collapse and it's almost inevitable that we're going to have to select six guinness some point and to a certain extent i think it may have already started with the credit freeze in two thousand and nine and the attempts to basically crittur a way out of the problem isn't going to result in hyperinflation necessarily oh there are people who are saying it will so much as it's going to result in a completely evaluation system in which we are right at some other new equilibrium and part of the problem to getting there is that there are forces that are more or less fighting over who has the largest number of these essentially immaterial objects this immaterial currency and what will happen is at some point they will
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have most of different are moving towards that already if you look at any of the various numbers in terms of who has the wealth and he doesn't. what will happen when it gets concentrated enough is the entire system itself will simply freeze up like it did in two thousand and nine and that's because the equilibrium and the maintenance and the survival of the system depends upon the circulation of these in each aerial commodities as soon as they start getting hoarded or sues people who have them start cashing out and into some kind of physical commodity both of these can trigger an imminent collapse not in the sense of necessarily a bank run or a panic but in the sense that the system kendell longer feasibly be able to maintain its own equilibrium and as it drives towards ever greater disequilibrium because that's needed that's the ground state for the start of a situation where you have vast you material production versus limited physical production michael betancourt thanks for being on the kaiser report but here i was glad to be here already and that's going to do it for this edition of the kaiser
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report with name max kaiser and stacy herbert and i thank my guest michael betancourt if you want to send me an e-mail please this at kaiser reported r t v dot com argue until next time this is max guys are saying. hungry for the full story we've got. the biggest issues get a human voice face to face with the news makers who.
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