and 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 business is 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 stole that was put the pockets of a few bankers they can call that a recovery and then second of all this compass crazy when the defense contractor is just another shyster bleeding the economy dry you don't need all that that nonsense or gold product that they're selling demo to 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 free open uncontrollable internet versus shackled newspapers equals no newspapers let's get real so instead of competing. he wants to raise barriers to the free internet not remove his barriers as they are perceived in the newspaper space 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 the 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 slow the 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 us 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 a 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 the 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 they see 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 well here are the they're 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 on the other side when the government intervenes maxim provides 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's 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 all 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 youth and 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 free 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 subsidy of the corn industry's been going on for decades and just because the ethanol 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.

more news today violence is once again flared up. these are the images the world has been seeing from the streets of canada. showing operation to rule the day. welcome back to the kaiser report i'm max kaiser time now to go to boston and talk with professor yanira barre yam founding president of new england complex systems institute professor welcome to the kaiser report remarks good to be here all right professor i want to get john i read your report and i think it's in stream way important that people take a look at this your 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 full year current for the price increases was not which was shown to be done on a simple there are two factors that are important one of them is a supply and demand factor if the are increasing conversion of corn to ethanol and the other is of the effect of speculation on commodity markets. following the deregulation or 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 shore peaks in two thousand and seven eight in two thousand and eleven and that's the analysis that we did in that all right so

professor 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 ministration essentially legalized portions of the financial transactional ised economy that previously had been classified as pure gambling now i want to the also mention the word supply and demand there and typically supply and demand are drivers in any economy they have 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 there 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. the years than when i was up until that time correct the suggestion that the science that we're doing might be helpful in understanding markets i can surely accept. there are two ways that the science of complex systems act however or can one it's through perhaps direct intervention where 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 so regulations are not actually and pathetic to market function they are actually essential for market function now you mentioned the issue of the deregulation and you also mentioned the issue of the routers 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 there were a frameworks in which the market function banking frameworks market

frameworks both for commodity markets and for star markets. and those regulations serve the economy well and in their effective stabilization of the otherwise free market system. they provided for a current tremendous growth so by recognizing that those regulations those or other rule hikes regulations that are creating a framework like the the structure of a building. in which activities can take place they actually enable the free market to function well we can marry the two approaches zero 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 regulation right professor saying for markable that in the discussion

of the crisis and the comparison 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 an error 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 and in a linear way or am i adding exponentially the rest 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. extreme events that are much more likely. recently. they've been called black swan events right they're much more likely then we expect based upon the quote normal distribution of behavioral and complex systems are generally characterized by having a much higher probability of extreme events 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 and raise 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 more

fee 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 more fragile and prone to systemic collapse than 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 on enduring 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 over the konami care of

the of the market activity and as a result we have an unstable system a system that is. she teetering and taut a 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 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 system in a way that's not functionally perfect right and by government we are referring to me and the folks in washington that have 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 the amount of money is spent per month on a third and the population staging a result of some kind professor if you plot the price of food over the last. decade the price increase that we spoke about later had these peaks in two thousand and seventy and two thousand and eleven two thousand and seven eight the. 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 correct 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. as

a result of the drought the prices of shot up again and that's pushed us above the level of our threshold or or 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. well it will take to be over the threshold and then the question becomes on the response so i heard how do countries buffer their. their

citizens for the poor from the stress of the food prices what happens and it everywhere in the world now depend upon how we react. there are a big policy options which if you would 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 the rising all right professor nearby yeah i'm 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 our thank my gas professor bahry am near by i am founding president a knowing on a complex systems as a tooth if want to send email please do so at kaiser report in r t t v dot are you until next time x. guys are signed by a. syria's

delegates walk out of a meeting of states not aligned to the u.s. taking place in tehran outraged by egypt's new president dubbing damascus an oppressive regime. while the divided u.n. security council tries again to break the syrian deadlock with turkey pushing for a buffer zone as heavy battles continue. plus the euro zone's engine room in germany heads east for investment chancellor merkel is in china to drum up business and convince beijing that the euro is on the road to recovery. one screen online international news and comment live from the new center here in moscow the syrian delegation has walked out on

a session of the nonaligned movement in tehran they were angered to dispute by the egyptian leader mohamed morsi who called president assad's regime oppressive syria's foreign minister said the comments amounted to inciting further violence in the country when we spoke to journalist broadcaster neil clark a little earlier who believes that morsi statement was unbalanced at best syria's with my colleague. he didn't criticize the rebels at all i mean the rebels have been responsible for much of the violence in syria the government fair enough to but you know there were bombs going off this week a few people clearly didn't he didn't make any mention of that so i can understand the syrians feeling very green by what he said you've got to bear in mind the fact that egypt receives about one point five six billion u.s. dollars in aid and on top of that back in august they received two billion dollars from qatar and of course the u.s. and it's hard to the leading hawks on syria so when you're receiving that much money from us in cotai it's hardly surprising go to a summit and criticize syria but it was not

a big surprise really so the new leader the new egyptian leader mohamed morsi are perhaps already. signaling his friendship with the west or possibly a war capitol hill as you say with his brow don't follow should you think that with the whole summit going on and you know one hundred twenty members of member states being represented here do you think they can come to something to resolve the ongoing crisis in syria. who are like you know what i think the key player in this rule is the u.s. i mean the u.s. is the main part of the skokomish that the u.s. and its allies which look at force as well and if we get a change of position from there i don't really see what the any movement can actually do and i think the ball's in the us court or we're getting i'm afraid from a washington is more sort of right wing rhetoric about arming rebels on the lease or rights today so unless we get a major shift there it's not going to help really and a great egypt position is helping at all it doesn't matter what media groups we set up which countries are on the key player in all of this is the u.s. the u.s. is that wants to open this up the u.s. has to change its policies and to let syrians sort out their own futures back out of syria then we can get some peace and dialogue now as you say so washington or

the u.s. is the big player here perhaps behind the felted curtains are washington has said that the whole are not aligned movement summit isn't worthy of any high level attendance that coming from the u.s. state department just the other day do you think such criticism is justified it's two thirds of the world in the us has the arab gets to say it doesn't count it's beyond what's really because of course the us wants us to believe that only it and its allies represent the international. the international community is meeting now in tehran the u.s. doesn't like it the fact is that the u.s. getting what isolate iran a whole series of issues south america africa china russia you know that is the world market going to see more warships in the years to come to us power is in decline and that's the reality and that's what we don't like. the deadlock the u.n. security council is to discuss syria with france presiding over the top body hoping for a resolution to help tackle the growing humanitarian crisis there turkey was also invited to the ministerial meeting it's pushing for the creation of a buffer a no fly zone over syria something russia and china strongly object to.

syria's president lashed out at ankara saying it bears direct responsibility for the bloodshed in his country bashar assad says his forces need more time to overcome rebels with heavy fighting ongoing recent reports suggest opposition fighters have downed a government fighter jet in the province a lebanese nun who spent over a decade in syria and came to the aid of the suffering when the conflict erupted says armed gangs started causing chaos there long ago. power of how it is. it's not political. it's not even civilian in the january i ask. a position where the good work or it lamented. and so i put they have an. eyewitness and in the beginning we did not even know who were people and we said said those people there were only identified the gangs you know we said we

don't know who they are but they are spreading. these or the killings abducting and many kind you know of metal rods for example they would keep a low if i have seen. in homs. if luck of blood. because in the day before. people you know source and i did then defied gangs have been beheading nine i know with people just because they were i know it i have seen this with my eyes. and you can see the full interview including more firsthand accounts from syria in twenty five minutes from now here on r.t. . jordanian security forces in a massive refugee camp on the border with syria on high alert after two hundred

refugees turned on the guards over the conditions that the government says anyone responsible for violence will be deported it appears that dealing with the immense influx from syria is for beyond what jordan can cope with. reports. exhausted and drained there's not much for these refugees to do besides swelter under the scorching desert sun sheltering from the violence back home in syria they walked for days in the heat to get here and so they come in numbers and under the wire not one person here has gone through the official borders instead depending on the level of violence in syria as many as a thousand people each day are fleeing across into jordan they're picked up from the border by the jordanian police and brought here to this camp and now a man doesn't know what to do with them the country is struggling with few natural resources little water and is in need of foreign aid the growing number is putting pressure on an already rich.