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 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 compassed 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 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 he 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he wants what cameron to give him protection is a buggy whip manufacturer and his model of doing business went out of date rupert is an octogenarian porn vendor and he's going the same way as porn is going the internet got rid of you know the porn market in l.a. that's getting room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 us 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. scares denville 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 the 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 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 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 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 are things which bring on the cause a report by. cumin stud no it was more coming oh i stay right there. in the bar in the morning at. the back. more news today says once again fled up

the phone from these are the images the world has been seeing from the streets of canada. trying to corporations are on the day the big. stop and look at the current of it it's unemployment the national debt bailing governments ask yourself does it really matter who wins with billions created daily you can gamble with your money or turn it into solid gold request the gold and silver investors a guy. called today eight hundred two five seven gold. welcome back to the kaiser report imax kaiser time now to go to boston and talk

with professor yeah nearby yam founding president of new england complex systems institute professor welcome to the kaiser report i-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 the cause of rises which did your models conclude were the cars in general. there or the idea that supply and demand could fully account for the price increases was not shown to be da possible there are two factors that are important one of them is a supply and demand factor that's the increasing conversion corn to ethanol and the

other is 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 about six. and the speculations 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 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 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 financial ization the chazz actualization 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 won't be hopeful and understanding markets are you can surely. there are two ways that the science of systems however 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 would 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 and pathetic 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 were 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 stabilization of the otherwise free market system. they provided for a current tremendous growth so by recognizing that those regulations those or

other rules 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 seems remarkable 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.d.i.c 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 risk to the system professor well. 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 behaviors 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 reason 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 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 themes and structures in place enduring that deregulation which is not that long ago i mean the banking deregulation happened at the same time as the commodity more deregulation and the stock market deregulation happened in july of two thousand and seven only months before the market collapsed so all of these major actions of deregulation 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 taught a ring and showing signs that it's about the last 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 collapsing 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 that is there a connection between this the that and the amount of money is spent per month on

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 ten eleven two thousand and seven eight peak. 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 result 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. a little take over the threshold and then the question becomes on the response so how do countries well. their citizens or the poor from the stress of the crisis what happens and everywhere in the world now depend on 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 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 a 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 barr yeah yeah nearby yeah i'm founding president of knowing on complex systems as a tooth if want to send email please do so at kaiser report in r t t v dot are you guys are saying by all. you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realized everything you thought you knew you don't know i'm tom harkin welcome to the big picture.

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

blogs are going to washington d.c. and here's what's coming up tonight on the big picture and the annals of political convention history you'd be hard pressed to find another speech like the one all ryan gave on wednesday night thank you as the speech was incredibly rouse enough passionate or full of inspiration to add so many damn lies in it you'd have to think the guy has spent the last year living on a different planet but maybe there's a strategy behind all those lies i'll tell you what it is just a mob also mitt romney takes the stage tonight at the r. and c. clearly he's hoping people will forget about his numerous offshore tax havens while he's speaking if so why then is a a lot sure

a yacht full of romney campaign donors sailing around the convention in the flag of the cayman islands and later the movement to amend the constitution to get corporations out of our elections just got its biggest indorsement yet i'll tell you who's joining the fight to overturn the damage done by the supreme court's citizens united decision. you need to know this vice presidential candidate paul ryan opened his speech last night before the r n c by saying this. mr chairman delegates. and fellow citizens i am honored by their support of this code invention for vice presidents of the united states. he got that job what job he was applying for right

but that was where the truth telling and he was virtually everything ryan said after that first sentence is a lie or half truth and what could be the most dishonest speech ever given at a major political convention in american history paul ryan relied on a lie after lie after lie to attack president obama and hide the republican party's true agenda which is to turn america into a corporate oligarchy he started with this was. a lot of guys i went to high school with worked at that g.m. plant right there at that plant candidate obama said i believe that if our government is there to support you this plant will be here for another one hundred years that's what he said in two thousand and eight well as it turned out. that plant didn't last another year it was locked up in empty to this day. and that's how it is in so many towns. where the recovery that was promised is nowhere

in sight. that's a lie president obama didn't preside over the plants closing in fact that plant closed in two thousand and eight a month before president obama was sworn into office and while george w. bush was still in the white house but don't worry the procession of lies is just beginning. the first troubling sign came with the stimulus the stimulus was a case of political patronage corporate welfare and cronyism at their worst. bigger you. you the american people of this country were cut out of the deal. what did taxpayers get out of the obama stimulus more debt. that money. wasn't just spent and wasted it was borrowed spent and wasted. that's

a lie according to the independent congressional budget office president obama's stimulus created up to three point three million jobs and it's awful bold for paul ryan to call out the stimulus is money wasted considering how he himself lobbied for a lot of out wasted money to flow and he is district in fact ryan rowe for separate letters to the secretary of energy begging for stimulus funds for his congressional district and he got those funds including one stimulus grant worth about twenty million dollars to which he later wrote a thank you letter back to the secretary of energy saying i was pleased that the primary objectives of their project will allow residents and businesses in the partner cities to reduce their energy costs reduce greenhouse gas emissions and stimulate the local economy by creating new jobs you know way back in nineteen forty four president franklin roosevelt uncovered

a key political strategy being used then by the republican party which is to tell big lie over and over and over again and if you keep at it the people will eventually believe. the opposition. has already probably didn't give it. a very. big. profit the propaganda technique according to pick me. you should not. smoke. it was a big move on. the back half. would make it more credible if he had to get. an. egg and that's what paul ryan did last night at the r n c which brings us to his

next big lie about medicare. seven hundred sixteen billion dollars funneled out of medicare by president obama. in an obligation we have to our parents and grandparents is being sacrificed all to pay for a new entitlement we didn't even ask for. thank god. the greatest threat to medicare is obamacare and we're going to stop it. that's a lie it's a lie if you can hear it's a lie of anything obamacare is the greatest savior to medicare in fact president obama's reforms seven hundred sixteen billion dollars he cut a waste fraud and corporate abuse within medicare extended the life of the program by eight years and actually paul ryan was such a big fan of those reforms.