when those one percent that he helped let's see what happens when these guys become negative and down on what the government is doing m.p.'s anger over g four s. damaging to economy one of g four s. as largest shareholder has warned that the aggressive response of m.p.'s to the olympic security shambles put recovery at risk by discouraging businesses to come to britain neil woodford investment manager at invesco perpetual which owns approximately five percent of g four s. of shares said that the verbal dressing down delivered to chief executive nick buckles at last month's home affairs select committee meeting was like watching a medieval persecution if this is the new way parliament wants to treat business please parliament don't be surprised when businesses decide this isn't the country for them not for of well first of all this phrase recovery put the recovery at risk there is no recovery in the u.k. there is a bounce for bankers stall a few billion quid but the employment picture has gotten more the economy is to

contract doing and the g.d.p. is shrinking there was no recovery there was a quantitative easing by the bank of england that was stolen that was put the pockets of a few bankers they can call that a recovery and then second of all this comes just crazy when the defense contractor is just another shyster bleeding the economy dry you don't need all that that nonsense of gold product that they're selling get rid of those people that would save the economy immediately so let's look on to another very close all of the dark of the u.k. political system let's look at how he reacts to competition this is a tweet from rupert murdoch simple equation cre open uncontrollable internet versus shackled newspapers equals no newspapers let's get real so instead of competing. he wants to raise barriers to to free internet not remove his barriers as they are perceived in the newspaper space but he doesn't want to

compete you know that's murdoch's as i've been saying for years of open competitive landscape he's never been able to compete if he has a monopoly position with satellites you can compete but when it comes to real competition he's a failure as a businessman always has been and here he's castigating the internet because it's providing competition to his model of doing business which is out of business does he want what he wants to government basically to give him protection you know if he's a buggy whip manufacturer he wants with cameron to give him protection as a buggy whip manufacturer and his model of doing business was out of date rupert is an octogenarian porn vendor and he's going the same way as porn is going the internet got rid of you know the porn market in l.a. that's getting room murdoch for the same reason you can get the same stuff online for free so just step off stage a little lonely old bat so here's a government again in this next story intervening into the markets creating chaos

through choosing favorites and on top of this you have an election happening in america so of course all sorts of political parties are putting out platforms that are either stupid or a hoax here in the u.s. right now farmers are king during an election season you know the heartland of america fed me wave ethan all mandate livestock farmers in indiana and across the nation are calling on the federal government to lift the mandate on the production of corn based ethanol that they say is squeezing drought devastated corn supplies and pushing up the cost of livestock feed some farmers fear the government's decision to promote alternative fuels by mandating the production of thirteen point two billion gallons of corn based ethanol this year is pushing the price even higher and could make feeds. scarce danville pork former david hardened says quote a waiver would at least let the market determine who is going to buy the corn and at what price like american never graduated from the circus side show when it comes

to politics the geeks and the freaks that are like a mitt romney who will promise anything this city slicker comes into the hayseed town and offers old cars a thing to the people you know and they never figured this out they these midwestern people always vote for this any and from the city every time this is a guaranteed winner you can't go lose you know. he can't lose but by betting against the naive a day of these midwestern works every time for the well here are there not naive because these guys are saying let the market decide what the price should be the government is introducing a mandate and saying this is what it is so all the other side when the government intervenes maxim provides for their favor and somebody so let's look at who they're favoring with this because there are some in the midwest who are very happy with this tipton corn farmer allan baird he called the mandate one of the most

significant things that has ever happened in his career because it helped his industry to overcome low corn prices which were below two dollars a bushel and parts of two thousand and five corn now sells for about eight dollars a bushel baird sells thousands of bushels of corn he says about thirty percent of his production to not even all plants for fuel production but you know the article points out max the food prices are rising because of this the corn is being diverted according to a mandate to provide renewable energy in the meantime it's creating winners and losers the guys who are raising beef cattle are losing because they have to pay a lot more they're having to compete with the corn ethanol guys who are receiving huge subsidies to make that ethan all so they're creating winners and losers in the meantime the globe loses with the high food prices well the globe has been losing for decades because the american corn is sure is receive government subsidies for decades as a result corn and corn syrup is sixty percent of all processed food and you have

thirty percent of americans obese as a result health care skyrockets due to the subsidies of the corn industry's been going on for decades and just because the ethan all just a new variation on because they can't compete again if they're murdoch or a farmer or you're putting out content you know try to compete once in america instead of always relying on monopolies the military and mayhem there are things which bring on the cause a report by. humans don't go away much more coming away stay right there. for a moment. more news today violence is once again flared up. and these are the images the world has been seeing from the streets of canada. showing up for

a shelter old today. i . want to welcome back to the cause a report on max kaiser time now to go to boston and talk with professor yanira bar yam founding president of new england complex systems institute professor welcome to the cause a report by max good to be here all right professor i want to get john i read your report and i think it's an extremely important that people take a look at this year report the food crises

a quantitative model of food prices including speculators and ethanol kind of version he looked at various possible causes for food price rises tell us what factors you eliminated as a cause of rises which did your models conclude were the cause in general. there are the idea that supply and demand could fully account for the price increases was not which was shown to be also bull there are two factors that are important one of them is a supply and demand factor that's the increasing conversion of corn to ethanol and the other is of the effect of speculation on commodity markets. following the deregulation of the commodity markets in the year two thousand those are the two factors. the corn to ethanol conversion has given rise to a rabbit but smooth increase in prices starting in about two thousand and six

and the speculation has given rise to short peaks in two thousand and seven eight in two thousand and eleven. it's the analysis that we did in that all right so professor you talk about the deregulation of the year two thousand so you are referring i would take it to the commodity futures modernization act this act of course which came at the very tail end of the clinton administration essentially legalized portions of the financial transactional ised economy that previously had been classified as pure gambling and i want to also mention the word supply and demand there and typically supply and demand are drivers in any economy the ad buyers and sellers and they meet in the market and a price is mitchell excepted but we're entering post two thousand but really building for a couple of decades here an economy that's really more systems oriented and requires the kind of work that you do in systems analysis and calm complex systems analysis understand what's going on because as you describe food prices you're

talking about multiple layers of of complexity of derivatives of betting that's going on the financialization the transactional ization and at the end of the day the market itself is become something very very different over the past twenty years than what it was up until that time correct the suggestion did or the science that we're doing when you hope you will understand ing markets are you can surely. there are two ways that the science of systems where we're karen. one is through perhaps direct intervention when things are not working the way they should. that's akin to traditional government interventions price controls and so on that may be important under some circumstances and informing them with a scientific analysis that can quantify the impact of policy choices was improve

of course the nature of those policy choices but there is another approach which is equally important at least and that is by understanding the functioning of markets themselves one realizes that. effective market functioning depends upon structures that are in place for those markets to function within the regulations are not actually empathetic to market function they are actually essential for market function now you mentioned the issue of the deregulation and also mention the issue of the riveters and so on today we are at a time where the concepts of deregulation have been prominent and have affected policy decisions of both parties and have led to deregulation that has undermined the very structure of the markets themselves so

after the during the period of the depression after the crash of twenty nine but for other reasons as well regulations were implemented that were frameworks in which the markets function banking frameworks market frameworks both for commodity markets and for stock markets and those regulations serve the economy well and in their effective stabilisation of the otherwise free market system. they provided for a kind of tremendous growth so by recognizing that those regulations those or other rules types of regulations that are creating a framework like the the structure of the building. in which activities can take place that they actually and mabel the free market to function well we can marry the two approaches of the free market and the regulatory side and realize that

they're really not contradictory at all they really require each other as long as one understands how to implement appropriate regulations right professor seems remarkable that in the discussion of the crisis and the. paris and to the one nine hundred thirty s. it's always about whether there should be deficit spending or not deficit spending but nobody seems to talk about the fact of the regulatory framework that was created at the time which gave rise to the recovery and it seems to me that that regulatory framework glass steagall f.b.i. see the securities act of thirty three and thirty four was the key in the recovery all to me but i want to ask you something about systems analysis for a second if i have a very complicated system and here are a complex system analysis on a list and that system let's say is tied to units of risk if i add one unit of risk to that complicated system and my adding to the complexity in in

a linear way or am i adding exponentially the risk to the system professor whoa. the answer is more subtle it's neither linear nor exponential it's usually some power law but what it means is that indeed there are extreme events that are much more likely. recently. been called black swan events right they're much more likely than we expect they're used to form the quote normal distribution of viewers and complex systems or are generally characterized by having a much higher probability rick stream of grants these are collective actions panics and bubbles and things that involve many people or many actors doing the same thing ok let me let me jump in here for a second time in interrupt but agrees i bring it up two thousand and eight the system around the world financially seized up principally because of the inability

for various counter parties to make good on their bets in the derivatives market as a response to central banks kamen and effectively added more liquidity. morphy out money more systems complexity with tarp and other funds other debt facilities more layers of debt more layers of complexity so the question is is the system now five years later or more fragile and prone to systemic collapse that it was a two thousand and eight or is it last fragile or is it the same what we have is a system that used to be able to stand as a building because it had all of the beams and structures in place in during the deregulation which is not that long ago i mean the banking deregulation happened at the same time as the commodity market deregulation and the stock market deregulation happened in july of two thousand and seven only months before the

market collapse so all of these major actions of the regulation are all very recent what we've done is we've taken out the support structures of the konami care of the of the market activity and as a result we have an unstable system a system that is too teetering and taught to ring and showing signs that it's about the lapse of every threat so what we have is we have the government propping it up standing outside the system and saying we've got to hold you up over here we've got to hold you up over there trying to prevent it from collapse and that's obviously not an ideal way to run a system that you have an unstable system that one is or visually propping up and really that's what's happening more than that the government is outing layers of complexity though the idea that it's adding complexity is not a reasonable because of course by adding these various external structures one is

will roll increasing the structural complexity of the system in a way that's not functionally perfect right and by government we are referring to me and the folks in washington that i beholden to the same bankers now talking about the price of food because this is obviously a big issue. there is a ratio out there that people quote saying that when a budget of a family gets to forty percent needed to cover their food costs as was the case in egypt it's a recipe for revolution ok that's obviously a very broad form formula but is there a connection between this the amount of money is spent per month on third and the population staging a revolt of some kind professor if you plot the price of food over us. the price increases we spoke about later how these peaks in two thousand and seventy and two thousand and eleven two thousand and seven and eight. coincided

with forty food riots countries different countries where there were food riots and the two thousand and eleven coincided with the arab spring the conditions of political circumstance and the konami conditions the countries that have been involved in revolutions recently have been around for decades and the question as to why such revolutions would happen now or in the last few years is simply addressed by pointing to these food prices peaked in fact we have identified a particular threshold. of the. food that revolt organization of the un's food price index. about two hundred ten one can practice for inflation a little bit but it's at that level food riots and revolutions become very likely in the world and indeed i'm sure that you're aware and

spoken about on your show the impact of the drought that's happening now and even though prices went down the first six months of this year. this as a result of the drought the prices of shot up again and that pushed us above the level of our threshold or more in the range at which we begin to be worried about social unrest food riots and revolutions and our projections based upon the mathematical model that we've developed for food prices are that the prices are going to continue to increase. a lot of that is due to commodity speculation rather than through the drought itself but either way the food prices are going to increase and and that's going to put us even higher than the previous two peaks and the danger zone surely of widespread revolution and our projections are that this isn't going to take much time a few weeks to

a few months is all. all that it will take to be over the threshold and then the question becomes on the response side how do countries buffer their note that their citizens or the poor from the stress of the food prices what happens and everywhere in the world now depend upon how we react. there are big policy options which if you look like i can tell you about but there are also of course country based options in terms of the interventions that are country takes to protect us from rising all right professor nearby yam founding president of the new england complex systems institute rata time but thanks so much for being on the kaiser report pleasure thank you ok and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert and orthanc my gas professor bahry am near by i am founding president of the new england complex systems as

a two to one to send email please to us at kaiser report on r t t v dot ru until next time x. guys are signed by off. the

euro zone's financial takes the fight for investment in east. china. on the road to recovery. syria's delegates are walking out of a meeting of state. taking place right now in tehran. egypt's new president. and oppressive regime. and while the divided u.n. security council tries again to break the syrian deadlock with turkey pushing for a no fly zone all of this is the heavy. across the war torn country.

international news. this is with me wrong. as the eurozone is failing to break free from its crippling economic crisis the leader of powerhouse germany is eyeing profit in the east on a visit to china. to convince beijing that europe is still a safe place to invest with billions worth of business deals already having been signed. has details on this. no stranger to china this is her sixth trip to the country since she came to power in two thousand and five and there's going to be some big business to be talked about during this current trip and it's not just politicians of the day on this visit a group of around twenty in the delegation including people like siemens and volkswagen who are all there to show that the eurozone still is a stable market to invest in but china has its own vested interest in seeing the eurozone stick together europe is china's biggest export market so there will be

support there from beijing to keeping the monetary union together but just expect some kind words they shouldn't be any talk of cash coming forward from china to help the ailing eurozone now there is talk of a special relationship between germany and china not unsettle some people in brussels who feel a little left out and when you look at the figures you can see why some nations would be feeling like they're not getting a slice of the pie trade between the two countries is set to rise to around two hundred and eighty billion dollars by the year twenty fifteen well the reason that the to make such good economic bedfellows at the moment is that germany produces the machinery needed for china's manufacturing industry germany also sees china as a growing market full day or exports since the orders have started drying up from within europe due to the people simply not having the cash to buy german goods

within the european union and within the euro zone monetary union so will be the eurozone crisis an increasing economic ties that will top the bill when it comes to i'm going to be talking to the chinese leadership but what will be underlining the meeting is a cruel fact that germany needs china far more right now than china needs germany. and china's prime minister has also called on greece italy and spain to go through with reforms on budget cuts to get their. finances back on track spain is meanwhile trying to dispel fears that it will need another bailout as it's formally strongest region catalonia has now run out of money consultant john holzman believes that angle of merkel will not be able to convince beijing to throw its cash into europe struggling south. what they want to talk about is not europe and germany relations between china and germany are great trade bilaterally grew at eighteen point nine percent last year one fifth of all exports to china from europe or germany one

quarter of all imports in from china are go to germany that's a booming relationships that's the difference on couple in germany from europe so a lot of countries around the world are doing it so i think you'll see a polite no line spanish and italian bonds as the chinese not become suicidal and this is america can be a good business person for germany but i doubt she can do the same for your the chinese are very polite indeed but they're religious about everything but they don't want to be saddled with the insanity that is the productivity of italy and spain compared the productivity of germany the euro zone's work very well for germany these other weaker countries have gone on the spending binge and bought german exports with that no longer being the case because they're in no position to do that germany is it's absolutely vital looks for more partners to buy their wherewithal and that means more from china or from india the problem is the whole world is in a downturn and so who buys this access german capacity becomes vital for the future of germany because of germany goes down well in the titanic really has hit the

black hole and it won't be long before the whole ship sinks. and watching our teeth go ahead for you in this hour look at life on the margins of how we have a story of syrian refugees at a company in jordan who have fled the bloodshed but now facing on so future and they crammed conditions on a lack of basic assumptions. and we investigate the spread of radical islam in russia and whether it's being fueled from abroad about some of the few minutes we're going to see. now the deadlocked u.n. security council is to discuss syria with problems presiding over the top body hoping for a resolution to deal with the crisis that's how he was also invited to the ministerial meeting it's pushing for the creation of a buffer a no fly zone over syria a saw. thing russia and china strongly object to a syria's president has lashed out saying it bears no direct responsibility for the bloodshed in the country bashar al assad says his forces need more time to overcome

the rebel soldiers with heavy fighting raging on recent reports suggest opposition fighters have down the government fighter jet in the province and the lebanese nun who spent over a decade in syria and came to the aid of the suffering when the conflict erupted so it started causing chaos there a long time ago. is that it's not political it's not even civilian and already asked to go to do position where the good order. and so i could have. and in the beginning we did not even know who those people are and we said those people who were. then to fly out of the gangs you know we said we don't know who they are but they are spreading. these orders.