asked 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. the 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 ng and the g.d.p. is shrinking there was no recovery there was a quantitative easing by the bank of england that was stole them 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 of 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 harry'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he wants with cameron to give him protection as a buggy whip manufacturer and his model of doing business was out of date rupert is an octogenarian porn vendor and he's going the same way as porn is going the internet got rid of you know the porn market in l.a. that's getting room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 and live us a 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 fades 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 hard and 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 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 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 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 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 free is receive government subsidies for decades as a result of 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 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 were things which bring on the cause a report by. cumin don't go away much more coming away stay right there. dreaming of a luxury who's seen round trip with the open air entertainment. a little bit

of that just so i used to get in better shape. and cuisine with all my healthy ingredients. in this case something to remind our summer sales on our cheese. 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 fully or current for the price increases was lot which was shown to be also bull there are two factors that are important one of them is a supply and demand factor of the for 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 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 do you 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 described food prices you're talking about multiple layers of of complexity of derivatives of betting that's going on the financial ization the kazakhs all ization and at the end of the day

the market itself is become something very very different over the past. years than when i was up and told us on correct the suggestion that the science that we're doing might be helpful in understanding markets you can surely accept. there are two ways that the science of complex systems act however or can 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. 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 blacks want to get it right they're much more likely then we expect based upon the quote normal distribution of the years 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 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 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 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 each of the market activity and as a result we have an unstable system a system that is cheap teetering and taught to ring and showing signs that it's about to collapse and 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 artificially 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 a full 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 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 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 increase that we spoke about later how these peaks in two thousand and seventy in 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 canonic 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 you have 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 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. a little to be over the threshold and then the question becomes on the response so hard how do countries well for their group know that

their citizens or the poor or from the stress of prices what happens and everywhere in the world now depend on how we react. there are a 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 the rise in all right professor nearby yeah 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 guests professor bahry am near by i am founding president of the new wing on complex systems as a to define the same email please dissent at kaiser report on r t t v dot ru until next time x. guys are signed by off. we

will not spend the next four years blaming others we will take responsibility we will not try to reap what you start founding principles we will read up why our founding principles. aren't the speakers get down to business painting president obama as an unfit leader and pushing party platforms but while poor publicans vast of the pomp and circumstance misinformation and watered down speeches dominated last night's rally we'll tell you how we marched return to our best traditions of american leadership and supported those who faced down the brewer tyranny of their oppressors. and did you hear that between the punch lines and rounds of applause john mccain and congolese of rice are pushing for a change that are decisive action in syria we've let us just closer to intervention

all question more. and it's been over a month since julian assad was granted asylum in ecuador but he's no closer to the freedom that he craves back in the us bradley manning's defense team revealed more details about his harsh treatment and updates on both cases ahead. it's thursday august thirtieth four pm here in washington d.c. i'm liz wall and you're watching our team. well it is the final day of the republican national convention the day for republican presidential nominee mitt romney to tell america why he should be the next commander in chief leading up to today it's. areas of speeches and events that have showcased division and controversy within the republican party one of the clearest examples tension between ron paul supporters and the establishment republicans to talk more about

this r.t. white house correspondent christine joins us now live from the republican national convention in tampa hi christi and. why their lives really really an interesting dynamic going on yesterday we saw those ron paul supporters the delegates from maine at once again walk out of the convention hall in unison taking up a whole lot of room i should mention they waited for the ron paul tribute video to play they waited for rand paul's speech and then they were gone they seem to to really be angry at the way everything has really gone down here without even letting them have their voices heard christine you know ron paul he declined a slot to speak at the republican national convention but as you as you mentioned they did play this courtesy tribute video to him at the event here's a look at it for those with getting.

sometimes that only. we were there. all right christine how are ron paul supporters reacting to that video. frankly it's mixed reactions live we've heard responses range from inspiring to offensive a whole lot of people that are here in support of ron paul both convention goers as well as delegates of course happy that they had a video at all but let me put this in a little perspective you said ron paul declined a speaking slot ron paul declined to speak in song because a he would have had a fully endorsed mitt romney which he says he doesn't believe he would have had to have his speech heavily vetted both by the r. and d. and the romney campaign to prove those are the conditions under which he denied a speaking slot here back to this video live less than four minutes it talked about

the fact that ron paul has never voted for a tax increase that ron paul has never voted to expand the debt ceiling the story the lives really in what wasn't said in this video ron paul has asked for an audit of the federal reserve and reserve and in fact the republican platform committee has adopted that as part of this year's platform so he was happy about that no mention whatsoever of his position on the military he has also called for an audit of the pentagon with ron paul says he wants to moeller government and much much less government spending he means it across the board not just from the so-called entitlement programs he wants it from the place where the majority of the money actually is spent and that is the military so a lot of people who support ron paul by the way as we've reported time and time again a lot of support from military veterans military veterans in poll after poll have been shown to support ron paul above any other candidate who was present in this

primary race leading up to the convention here this is an important issue and to have it not mention whatsoever with pretty offensive and frankly and i'll use their words were full of some of these supporters who i spoke to another side note was it's really interesting you know as you know as our viewers know we have covered ron paul conservatives. for the last four years so it has been interesting being here as a member of our team america people coming up to me recognizing me telling me you know we want our team because of your coverage and it's been really interesting i think a whole lot of the other networks a lot of the other mainstream media and the establishment political parties here in this country very surprised to see what has happened with these ron paul delegates and what has happened overall with his inability to come out of this convention with the support and unity behind mitt romney that a lot of people here expected and christine you know there is is hope within the libertarian movement that rand paul will carry the torch of his father ron paul but

based on last night's speech rand paul's speech afy r. and c. does it appear that he's doing that. well a live that was really really interesting as i mentioned a lot of the delegates in support of ron paul a lot of people here expected a dynamite speech expected a speech that was sort of set the stage for ron paul run in twenty sixteen over the weekend at the rally he gave a very different speech in support of his father in last night's speech he didn't even mention his father by name he simply talked about on his immigrant grandfather who came to this country and had a son who has you know became a texas congressman and ran for president that line met with a whole lot of applause from the audience here but really really toned down and that's one thing i want to focus on i mean rand paul talked about obamacare how he thinks it's unconstitutional he's on to about immigrant families that he knows you know a cambodian.