dollar few billion quid but the employment picture has gotten morris 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 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 nonsensical 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 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 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he wants with cameron to give him protection as a buggy whip manufacturer and his model of doing business was out of date rupert is an octogenarian porn vendor and he's going the same way as porn is going the internet got rid of you know the porn market in l.a. that's getting room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 slow deal that 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 denville 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 idiot 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 need 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 for 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 these 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 you know 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. thank you much much more coming oh i stay right there. dreaming of a luxurious sea round trip with open air entertainments. a little min

of exercise to get in better shape. and cuisine with all my healthy ingredients. in this case something to dream of our summer sales on our cheek. well into the. science technology innovation all the latest developments from around russia we've got the future covered. download the official application so choose your language stream quality and enjoy your favorite. t.v. is not required to watch on t.v. all you need is your mobile device more charts any time to.

welcome back to the kaiser report i'm max kaiser time now to go to boston and talk with professor yanira barr yam founding president of new england complex systems institute professor welcome to the kaiser report. all right professor i want to get john i read your report and i think it's in streaming important that people take a look at this your report the food crises a quantitative model of food prices including speculators and ethanol conversion 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 full there are two factors that are important

one of them is a supply and demand factor that's the are increasing conversion of corn to ethanol and the other is the effect of speculation on commodity markets. following the deregulation or commodity markets in the year two thousand those are the two crack toure's. 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 administration 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 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. years then when i was up until that time 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 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 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 to implement that there were frameworks in which the markets function banking frameworks market frameworks both for commodity markets and for stock markets and those regulations served 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 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 comparison to the 1930's it's always about whether there should be deficit span. being are 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 extremely variants that are much more likely. recently. been called black swan events right there

much more likely than we expect based on the quote normal distribution of behaviors 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 are 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 more fee out money more systems complexity with tara. and other fines 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 laughs 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 cheap 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 over if you're we're going 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 are officially 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 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 increases we spoke about later how 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 result 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. 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. well it will take to be over the threshold and then the question becomes on the response so how do countries well for their. their citizens the poorer from the stress of prices what happens and everywhere in the world now depend on how we react. there are 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 takes to protect us from 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 gas professor bahry am here by founding president i know a lot of complex systems as a two to one to send email please to us up at kaiser report on r t t v dot are you guys are signed by a. mission

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seven gold. president obama came down hard on the banks after the mortgage crisis but it looks like the big banks are not the only ones back to their old tricks they never learned their lesson using technicalities and loopholes to make more money stick around we've got a story that will make your head spin. we will not spend the next four years blaming others we will take responsibility we will not try to replace our founding principles we will apply our founding principles. aren't you speakers get down to business painting president obama as an unfit leader and pushing party platforms but while republicans bastien the pomp and circumstance misinformation and watered down speeches dominated last night's rally we'll tell you how we marched return to

our british traditions of american leadership and support those who raced down the brutal tyranny of their oppressors. well between the punchlines and rounds of applause john mccain and consul has a right to start pushing for decisive action in syria as the u.s. one step closer to intervention will question more. it's thursday august thirtieth six pm here in washington d.c. i'm liz wall and you're watching our. well we turn now to a multi-state foreclosure settlement targeting the five largest banks the twenty five billion dollars settlement was lauded as a bipartisan effort to bring the banks to justice for kicking millions of people out of their homes the banks were accused of engaging in this practice of robo signing but it looks like the banks aren't really being punished at all that's

because they don't actually have to cough most of the fines and cold hard cash to discuss this more i'm joined now by david dyad blogger for fire dog lake david welcome so robo signing this practice of bank employees signing off on legal documents without really looking at this recklessly it led to this you know reckless foreclosure as a lot of people say these people though what have lost their homes anyways so why should we be so concerned about this practice well there was a massive amount of fraud up and down the chain you know starting from origination all the way through the way that these loans were securitized and sold into the marketplace all the way up to loan modifications and foreclosures i mean there are stories of massive service or abuse which was also covered in this settlement people who were foreclosed on when they didn't actually even have

a mortgage anymore that they had paid it off people whose payments were misplaced and then were after a couple years put into foreclosure i mean i don't think there's anyone who has a skate the massive amounts of abuse and fraud that were done up and down the chain in the housing market so would you say because of these reckless practices that people were wrongly foreclosed on. absolutely i mean you can just look at the ad at some of the few investigations that we have into these practices i mean it's not just just robo signing which you discussed but it is losing the chain of ownership on these loans so that i mean we have we have cases of two banks closing a foreclosure on on the exact same house because the banks lost track of who actually owns the loan so that the right person has the means to foreclose

and this gets back to you know the rule of law and property rights which are hundreds and hundreds of years old and and what some economists say or what what do you know delineates developed nations from from developing nations so. this is really serious stuff that was done and as i guess we're going to talk about the settlement itself was really not even a slap on the wrist and you know want to play this clip from president obama after this settlement came out kind of him praising what has you know what the settlement was all about let's take a listen to what. we have reached a landmark settlement with the nation's largest banks that will speed relief to the hardest hit homeowners and some of the most abusive practices of the mortgage industry and begin to turn the page on an era of recklessness that has left so much damage in its wake well there you see a president obama and other politician lobbying the sell settlement as bringing

relief to homeowners but have homeowners really seen significant relief. not very much yet we just got a report from the office of mortgage settlement oversight this is the monitor that was put in place to basically find out how much relief has gotten to from the banks to homeowners and you know there was a big top line number that was put out saying oh consumers get ten point six billion dollars in relief sadly the how that actually worked out on the seconds are . how that actually worked out was that eight point six billion of the ten points six billion was from short sales and now what a short sale is it's basically a foreclosure without the messy process i mean a short sale is where a homeowner who's underwater does a sale of the home and then the bank forgives the difference between the actual

sale price and the end result price. how much they owe on the mortgage so it's basically the bank saying ok we know that you're underwater there's no way you're ever going to get this this right and we're going to forgive the rest of that balance but what happens in that case is that the the homeowner loses the home they get out without having to go through the foreclosure process they don't. they you know they don't get a credit hit but really this this is something the banks have been doing for at least over a year now they escaped having to deal with the foreclosure process which has been tripping them up because of the documentation errors that we've discussed they get a sale price that is probably higher than what they would get.