something dirty about their business practices coming up we'll tell you how world pool is hanging in one town out to dry. the capital account i'm lauren lyster. and what drives the world the fear mongering used by politicians who makes decisions to break through it's already been made who can you trust no one who is in view with a global mission which is where we had a state controlled capitalism school sessions when nobody dares to

ask we do our tea question more. well president obama is on a three day visit to five states hell needs who when and november to keep his job tonight he arrives in detroit the state of michigan has seen a rising inequality and a disappearing middle class that's earned a reputation as a doom it's a place where no one and their right mind wants to go this movie clip pretty much captures that motion. as for my american friends. think. through the moan groan. so you get to detroit.

well there's got to be a reason why some people are so scared of that place and there is one town in michigan that you pit in my eyes is the problem of corporate greed crippling a community while apple and many companies ship jobs overseas another company has found a way to drain average americans in the state and as our correspondent arena pour in iowa shows us one multibillion dollar company has left an entire community drowning in debt and sorrow. in one of america's most economically depressed cities resides the world's largest producer of home appliances whirlpool corp is headquartered in benton harbor michigan where sixty percent are unemployed ninety percent live in poverty and per capita income is roughly ten thousand dollars the citizens of benton harbor are living from one day to them and they're very poor and they're very disheartened i mean there's been very little effort on the part of

the whirlpool that runs everything to try to. involve the community in two thousand and nine whirlpool received a nineteen point three million dollars grant from the federal government in part to create jobs and i think our u.s. workforce certainly. factory workforce if you will is that is the best among the world so we're very confident in the future of u.s. manufacturing for our kind of products one year later the corporation received nearly twenty million dollars from the state of michigan to expand its facility which now serves as a gateway into benton harbor it's good for the community good for the state and good for your business as well there's a real art to that but as the u.s. based corporation has grown globally you know you're. more jobs have been outsourced to countries demanding less wages today the former blue collar community

of benton harbor remains a victim of america's deindustrialization and growing population pool has seventy one thousand employees around the globe but no longer manufactures home products in its hometown it still remains a recipient of u.s. state and federal stimulus funding. more open to just close the factory and that hurt my business my little business. i lost a lot of clients this is their home base and it always has been and in the beginning of the large development they promised us that they would always be due to the recession the corporate behemoths of home appliances hasn't paid us income tax since two thousand and eight by two thousand and ten nearly ninety nine percent of benton harbor residents were receiving food stamps while the approximately eighteen billion dollars in annual sales that think of purchased my last whirlpool

appliance i don't even think i'll call for we care because too often in for too long those that have gotten rich has forgotten who helped them to get there and they're willing to step on us in that just doesn't sit well with my soul a song living in one of america's poorest cities in poverty and accessorize in corporate success. or to new york. well to dig deeper into this is max fred wall he is the senior analyst at green press capital welcome to the show max so you know what does it say about the u.s. government who time and time again gives out stimulus money and tax incentives to companies who that in turn lay off workers and destroy the quality of life in some small towns. well i would see it as a sort of microcosm of the national in

a macro feature that we've seen particularly over the last few years and that's a situation where what is always best for corporate profits is not always best for the communities that host these large corporate entities many of which are far flung in their operations sell to americans but sell around the world and increasingly are interested in the united states primarily as a place to sell products and to get various subsidies and assistances from the federal government which are usually granted more or less no strings attached and we see a sort of divergence of course here between the way the companies do in the way the towns and the communities around them do i think detroit may be the most famous story but the story you tell here is perhaps even more stark even more a tale of two very different experiences very different economic opportunity sets and what then needs to be done to address this rising problem of income inequality and this system which allows corporations to flourish at the expense of you know the regular folks. well i mean i think many people have said it but i would

add my voice to the chorus that say we need to be a little more sensitive to stakeholders as well as shareholders in these decisions and if we are going to use taxpayer money to subsidize some kind of ongoing procedure process or facility there need to be strings attached to that money that would be true if it's tarp money given to large banks in two thousand and eight two thousand and nine it would likewise be true if it's a grant to pool that's supposed to be taken care of the community as opposed to be sensitive to the jobs and needs of not just shareholders but also stakeholders in the local community and having that kind of poverty sit side by side with opulence is also usually a recipe for political and social unrest as well as being poor in terms of its ability to stimulate the macro economy to provide jobs opportunities and hope to the broadest number of people who are reliant on that enterprise now president obama he is now taking up his campaign and these key states michigan being one of them he's arriving tonight so how is he going to win over votes in these places

that are in some cases worse off than when he took office. i think it's going to be hard for him i think you see newt gingrich and mitt romney and to some extent rick santorum kind of pushing back the president's state of the union address really highlighted this notion that the economy is in good shape and that part of the reason for that is the various plans and policies of the obama administration now i think you can make a fairly strong argument that he inherited the situation that's perhaps it was even worse than the one we're in now that only gets you so much and that only works for so long i would applaud artie for going and doing a story on a place like harbor but unfortunately that tends not to be where candidates stop it tends not to be where the cameras in the social focus go but the bottom line is the story that you reveal in that town is replicated in many many towns of many many neighborhoods all the way from california to here in new york and part of what's happened is it's remained in the shadows for a long time and leading news outlets present company excluded have been a kind of there's been a bit of a conspiracy of silence about those types of situations and you know obama

president obama he is coming back we saw a little bit of it and his state of the union speech a couple days ago with this populist message that helped to get him elected in the first place this rhetoric of favoring the people over the elites but is it going to be hard for folks in these struggling states and people like like that town in michigan to believe that. you know that might be quite difficult i mean even if you look at the debate that we saw bubble up into the state of the union address and also mitch daniels republican response which i thought also spoke quite a bit about economic trouble in the response to the president's state of the union we see a discussion about individuals paying their taxes but we don't see as much of a discussion about large transnational corporations and the story that we started out with this evening it wasn't so much an individual story as it was a story of a large corporation that's not paying taxes in a community where an enormous number of the residents a huge majority are living off transfer payments or social program payments from

the government which means that whole town is basically giving little or nothing to the federal state government in terms of tax revenue but is demanding a lot of payments and that brings up the serious issues we have around federal state and local budget shortfalls which are beginning to create austerity programs even in the midst of the economic suffering that we're here to talk about this evening and while this evening or tonight we have yet another g.o.p. presidential debate coming up and so far as expected they have been talking about tax breaks for the rich and their argument is that that is going to jumpstart the economy somehow that that might be part of the solution but when we see cities you know like ben harbor which was just profiled does that disprove that theory. well i mean if that worked so well i don't think we'd be in the economic situation that we seem to agree on the republican democrat liberal and conservative that we're in right now so we've been following more or less that line of policy

prognostications for about thirty years and it's landed us where we are now and even if we can't always agree on the best ways to move forward i think we can all agree that where we are now is an unacceptable place we need to get to a place that's different and you know ninety nine times out of a hundred historically if you want to have a different outcome you do have to try a different method if you don't you fall victim to the great einstein definition of the insane which is to keep trying the same thing and keep expecting a different outcome max great to have you on the show as always that was a max fred well senior analyst from green cross capital. and that is going to do it for now for more on the stories we covered you can head over to our team dot com slash usa and check out our you tube page it's you tube dot com slash our team america you can also follow me on twitter at liz of all the alone a show is coming up in a half hour we will be right back here at seven for the news.

more news today violence has once again flared up. these are the images the world has been seeing from the streets of canada. showing corporation to rule the day.

kaiser this is the kaiser report you know we have banks there but hollywood even more stacy max there's been a call to revolution kill hollywood this is a headline from the reformed broker dot com and josh brown says when the revolution begins and becomes apparent one doesn't sit on his porch and watch one gets his gun off the mantle and kisses the family goodbye on his way out to the field oh yeah all the wars on the kill hollywood campaign that started you know we have the occupy wall street movement on top of the arab spring movement but this kill

hollywood movement is really interesting because it sets the sting for a civil war in america yet domestically in california with think northern california silicon valley the tech community versus hollywood the old oligarchic neo feudal caste system but so reformed broker however josh brown is that talking in particular about why combinator this is a startup seed funder and they looked at this situation they saw sopa and they said hollywood appears to have peaked if it were an ordinary industry film camera say or typewriters it could look forward to a couple of decades of peaceful decline but this is not an ordinary industry the people who run it are so mean and so politically connected that they could do a lot of damage to civil liberties and the world economy on the way down it would therefore be a good thing if competitors hastened their demise so why combinator is a seed fund capital farm which is pretty thanks for capital farm it's an integral

part in the capital formation that is nasdaq that is the huge growth that we've seen in online and when. two point zero now they've taken an adversarial position against hollywood because they recognize and as they say in that quote they're mean they're well capitalized and they cheat and there are ability to undermine the system and to destroy free speech and to destroy a lot of what makes the economy grow is such that they need not to be left alone to just with their away and die they need to be actively pursued and killed the industry of hollywood needs to be killed and you know he he says that they're going to get violent and nasty on their way down and we already see that we saw that with soap and he said this is for y. combinator says this indicates to them that hollywood is dying poor chris dodd is the next headline the former senator and now c.e.o. of the n.p.a.

can't catch a break so he looked at the situation the defeat of sopa and he said it was just a p.r. thing and that he blames in particular the tech community he blames silicon valley he said you've got an opponent who has the capacity to reach millions of people with a click of a mouse and there's no facts checker. is afraid of him. book crist you know he's one of these extraordinarily corrupt american politicians who now runs the m.p.'s and what is the n.p.a. in motion picture association of america you know from here there may mention along with our i am the recording industry association of america and these two lobbying groups on behalf of hollywood and the extraordinarily narrow interests of the copyright cartel who is always for extension of copyright is put a muzzle on speech in america and on innovation in america to satisfy the whims of just a few oligarchs copyright cartel oligarchs in los angeles and as i mentioned it's

a bit of a civil war because you've got the tech industry in northern california they've got the copyright laws in southern california and now these two are at loggerheads at the each other and. we're siding with the technology of course the open source and the free speech the copyright cartel and hollywood it is an ugly mug not believe position that's done incredible damage and i'm glad to see this fight finally spill out into the open it's been in the shadows for a number of years now it's a mainstream fight the main event now i want to show you just how america operates on this monopoly system here they have a digital dictator chris dodd he's the former senator for connecticut before that he was a congressman i want to show you a picture of me in connecticut one nine hundred seventy five. that's the year that chris dodd first became a congressman noticed something i was a little tiny girl exactly like all those people in tahrir square who only grew up who only knew mubarak i have only ever known chris dodd and joe lieberman they were

always our counters per cent are always our center they were always ruling us determining what connecticut could do and here he is he goes over to the n.p.a. and the whole internet space suddenly has become a genuine threat since mubarak was overthrown you mentioned mubarak and the mubarak regime toppled quickly because of the facebook revolution. move barack off guard obviously an entire region is still trying to figure out this whole thing a social media same thing with hollywood they have been quietly putting in for copyright term extensions for decades they've had their way for decades suddenly mobilization against sopa and people within a day within a week it was defeated in washington with lightning speed injustice and those and those those those all of darks and hollywood were taken down a peg similar to the way mubarak was taken down and then the fight is on other people realize that hollywood is the enemy of free speech when mubarak realized the

danger to his monopoly he controlled the all industry essentially in egypt as his private fiefdom now compare this to the n.p.a. hollywood realizes that there is a genuine threat to their monopoly position and what do they do they go on to state television fox news and threaten. the soldiers if they don't do enough violence on their behalf m.p. a openly threatens to pull funding from politicians who oppose them so chris dodd the head of the motion picture association of america went on to fox news and he said those who count on quote hollywood for support need to understand that this industry is watching very carefully who's going to stand up for them when their job is that steak don't ask me to write a check for you when you think your job is that risk and then don't pay any

attention to me when my job is that state it's a remarkable admission that these politicians are for sale and he's saying that unless you continue this monopoly position we're not going to be supporting you in washington anymore and that's really a remarkable admission and it shows you the stakes involved and it shows you why the internet community is mobilized now to take hollywood down and that's why y. combinator a seed capital firm has written an open letter saying we want to kill hollywood i mean this is an amazing admission by an integral part of the capital model in the united states that they're saying they want to kill hollywood and of course there are business models in the wings my own pirate my film dot com which is geared toward doing exactly that the other important thing to know here is here he is going on to fox news state television and he's threatening politicians to give them more funding to bail him out who is the man who actually wrote the legislation for

sopa that was lamar smith a so-called tea party member he's demanding that the f.b.i. operate as their collection agency i imagine here's an industry the motion picture association which their product hollywood films very few of them have ever made a profit probably less than a dozen in the last thirty years have ever technically earned a profit now imagine the tea party is freaked out that barack obama bailed out g.m. . at least they made a profit in many years and they do make a profit when they sell a car hollywood doesn't actually make any profit they claim so why are we subsidized why would we get the f.b.i. out which they start making sure nobody buys toyotas in order to protect g.m. from their you know bad habits of building cars that nobody could afford to operate or has the hollywood accounting as this call is the original enron style accounting

they book any incremental profits in the short term and then they amortize losses for infinity the executives pay themselves on this cookbook mentality and now you see it running rampant throughout the entire economy the banks on wall street for example they book all their short term profits they dump the losses into the public domain so this is now being carried back and forth then the insider trading between hollywood washington and wall street exchanging information then there's another lobbying group the creative coalition nice to be on the board of that organization and now the people are beginning to realize that hollywood is the enemy we need to kill hollywood. and part of that is that they don't want ideas to flourish because this global cartel system that we see the oligarchies that controls everything they realized in the last year since mubarak was toppled that ideas are so much more powerful than even one of the most heavily controlled economies in the world so you

see this also in the currency that has kept that alive is the dollar and you also see the same sort of response as sopa to the dollar currency wars iran banned from trading gold and silver reuters reports that the e.u.'s agreed to freeze the assets of the iranian central bank and ban all trade in gold and other precious metals with the iranian central bank and other public bodies and around max so this is just supplying to the your paean union they also are not allowed to trade oil with iran so how do you think this is going to affect the euro the dollar and will it preclude china russia or other nations like india from kentucky operating no of course not its financial suicide of course because it doesn't preclude china china wants gold iran's got goal they're going to do deals with china and china is preparing itself in this currency war for a post us dollar reserve world and also you've created markets you created the hollywood stock exchange is gold and silver are they fungible commodities of course

i mean this is a shows you how arrogant these policymakers in europe are and why they're going to lose this currency war it's very simple that's why gold is over going higher so of course i said it also applies to oil india joins asian dollar exclusion zone will transact with iran in rupees india in iran have agreed to settle some of their twelve billion dollar annual oil trade in rupees resorting to the restricted currency after more than a year of payment problems in the face of fresh tougher u.s. sanctions so zero hedge concludes that to summarize japan china russia india. around the countries which together account for the bulk of the world's productivity and combined are the biggest explorers and producers of energy and now they're all coming up with bilateral deals thus obama's policies are actually creating this situation the final death rattle of the u.s. dollar as a reserve currency and they hope that this will somehow stimulate their exports at

the end of the day and save america and create jobs but what they don't understand is that all they're doing is that they are empowering every single other nation on earth who from to be able to escape their seniority that is the play of the dollar and to grow independent of the u.s. and to completely divorce themselves from the u.s. and it also is the exact same sort of moment why combinator is a seed capital fund for the internet space. china is the seed capital you could think of as for capitalism at this moment they're the only ones with cash reserves financing a lot of things so they must look at this in the same exact way that y. combinator looked at sopa y. combinator look at sopa and salt the death rattles of an industry china has to look at this and see the same exact thing that they're running out of ideas if they're only ideas to shoot somebody and it's certainly

a good case to continue to keep accumulating goldens over stating our thanks so much for being on the kaiser report thank you max that go in much more coming your way so stay right there. with. this month by particles that make up the fabric of the universe find what you're looking for in the deep siberian forest prevent a fire with the help of lasers in fibers pull out your template of a new game region and let the teacher begin all of that here you know with severe specific knowledge update here on along. the future covered. download the official auntie application to i phone or i pod touch from the i choose our store. one job life on the go.

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max guys are welcome back to the kaiser reports i'm not to go to california and speak with author radio show host mike rupert of collapse that dot com mike welcome to the kaiser report max great to be back with you again all right mike rupert you're in california home to both hollywood and silicon valley what is your take on the sopa people debate how is it playing out in the local news there in california clearly in california my take is that the press and the people perceive that sopa

and pipa are in a dire straits and i don't think there's much hope to resurrect these bills the opposition has been pretty uniform i just made a trip down only recently and met with a number of people in the movie industry and i did not see a lot of concern about it so i think there's another agenda being followed right well clearly it's an assault on hollywood there's a venture capital firm now coming out saying kill hollywood with new ventures that will undermine the hollywood copyright cartel it's an assault on freedom of speech and there's a bit of a civil war because the technology is in northern california the content copyright cartel is in southern california but is it just a sunshine in the end the dope and the drugs that make them impervious to what's going on well i think it's what we're seeing all over the world as old ways of doing business are just no longer viable and no longer productive this is kind of an evolution and i think it's a healthy one where we see more access to copy by more people instead of people holding on.