it's my own little personal ground and trying to launch it on the tenth. there this is what happens to america. all right stacy. max maybe one day one of those drones or helicopters will wash away the scum that infest this city here in manhattan nice nice taxi driver reference. well the first of i am max this is the n.y.p.d. secret spy cab and enemies within the new book from pulitzer prize winning associated press report is matt apuzzo and adam goldman on the n.y.p.d. indiscriminate and probably illegal spying program references briefly made to a real yellow cab complete with an authentic taxi medallion registered under a fake name used by the department's intelligence division to conduct surveillance operations so this is the cab this is the image and it's six why one one this is a real cab max with a real medallion well as i've been saying all along it's not about you know any war

on terror or security it's about what's now called big data so any data point you can collect whether it's from a taxi driver spying on the passengers it all goes into this big enormous database which is sold to markets or to sell stuff that's what it's all about it's not a war on terror it's not about security it's about getting people in a position to sell stuff i'm sure that before long when you get into american a taxi based on the spying of the customers the guy driving the cab will turn back and say hey buddy i notice from your facebook page that you like schlitz malt liquor would you like the twenty four hours like i don't assume you're sick for nine bucks you know on the go on like a one lady on crack avon lady going while there was an avon lady everard so you're going to so be sold that's america the business of america is a business and big data is helping us get there you want to be spied on. now the other thing we've noticed since we've been here in new york is that this remarkable story about the cost of the inmates here because we were we not only have a military industrial complex we are. the prison industrial complex city's annual

cost per inmate is one hundred sixty eight thousand dollars study finds the city paid one hundred sixty seven thousand seven hundred thirty one dollars to feed house and guard each inmate last year according to a study the independent budget office released this week that's twelve thousand two hundred eighty seven inmates m.x. eighty three percent of the costs that are split about four into the sixty dollars a day goes to the cost of the guards salaries and pensions and their health care because of the fastest growing population in america is the prison population so i predict that within ten years the biggest population overall in america will be the prison population so of course starbucks the opening of prisons mcdonald's opening of prisons big data step you know raytheon and all the big data defense contractors opening up of prisons you've got to get into prison to get the most out of life that's america's new branding mission statement to get the most out of life get into prison now in twenty twelve the very institute of justice to do a study with forty participating states and they found that over the year thirty

nine billion dollars is spent incarcerating people that the average across the states of thirty one thousand two hundred eighty six dollars per inmate but in new york state it's sixty thousand dollars per inmate with obviously manhattan being. three times that at one hundred sixty seven thousand it's a captive audience it's better than cable t.v. you know first of all the food stamp program is going to be infiltrated into the prison system so people get their prison card to go with their their other snap card or food benefit card so we're in prison you're not going to be good in prison you know in the commissary and you can buy stuff at the prison commissary but that's going to be the main component of america's g.d.p. is the american dream i want to be in prison going to stop cars going by stuff all day been so all the stuff of the prisoners and get a bonus so i can fly over some other part of the prison and avoid getting gang raped by some other guy because i'm in this part of prison and it's all good. well in california in fact you can pay to get into prison there lead. a better jail then

prison that they might send you to this part of the prison industrial complex where you might be raped well three months paid to stay jail offers a more pleasant prison experience so you could pay one hundred fifty five dollars a night and be in three months prisons it be where they built in two thousand and two they built a ten point six million dollar fifty eight bed detention center while the facility don't quite qualify as five star is still a lot nicer than the local prisons where gang affiliations and overcrowding can make a stay harrowing to say the least so it's rarely filled to capacity these fifty beds so they're offering them one hundred fifty five dollars a night if you want to stay in a better prison rather than the overcrowded gang one right well obviously the idea is to get the stuff into the best prison possible and this is what people who are graduating from these colleges with forty or fifty thousand dollars in debt for just a mere ten thousand dollars more in debt you can get into the prison of your choice so go right from n.y.u. to the n.y.u.

prison you can sell other prisoners and utilize your skills that you learned at new york university making the larry people very very profitable in a new york university prison well the other interesting thing so we just talked about this one hundred sixty eight thousand dollars the cost of the prisoners here in new york city and fremont they're saying that at one hundred fifty five dollars a night they're going to rake in a good great deal of profit because for fremont it's also a great deal it cost the city only eight dollars and thirty five cents per night to take care of its prisoners which means that it realizes almost one hundred forty seven dollars a night of profit for every bed it fills there for first of all you have the profit motive they're going to make money if they can get somebody to have to spend the night in jail and second of all why is it only eight dollars thirty five cents compared to four dollars four hundred sixty dollars here why don't you just send some of these prisoners out to fremont and house them there because that would mean less debt and remember this is an economy based on the mac. debt possible as long

as interest rates and we heard from mark carney over the u.k. that are going to keep interest rates low for as long you know another few years and they're low in america with ben bernanke you know low in europe as long as interest rates are low the name of the game is more debt so if it costs more to put prisoners and do high end prisons then more debt is incurred which is great for the president complex and the banks on wall street well ok so here it cost one hundred sixty eight thousand dollars to how is a prisoner in new york city the median income here is fifty seven thousand that's for median household income so as you see that they're having to go into debt to incarcerate these people and this is our foreign policy as well you know over one point six million households in america that's over three point five million children live on less than two dollars a day yet there bombing lord knows how many countries every time we drop a tomahawk missile it's a million plus dollars we're going to how much silver as well but that's at an end point we think because even the financial times is now writing about this and this is where your helicopters are going to come in real handy mack's central bankers

have given up on fixing global finance according to robin harding he says the world is doomed to an endless cycle of bubbles financial crisis and currency collapse get used to it this was the message coming out of jackson hole the central bankers realize that basically since we went off the gold standard in one nine hundred seventy one they're conceding that there's no way to control these boom and bust cycle well there is a way to control the boom and bust cycle that is letting markets determine interest rates but they are saying is that we're better than the markets where a poll of bureau. committee members that set rates at low enough to allow for the president complex to thrive so it's all about time a drone again try to get the song to do gosh darn it they don't make things like they used to. the knee was. ok so this has been a remarkable piece in the financial times because here we have basically you know i start at the top of the the show. one day

a real marine will come and wash the scum away well this is the same thing in the monetary system is we have this real scam currency which is is is is basically causing assessed pit of of misallocation. and just a corrupt bankers banking system everything is corrupted because of that and we have this constant boom and bust cycle and apparently according to what emerged out of jackson hole is that the just ready to give up and they're ready to concede defeat basically to precious metals gold and silver because of course those are the travis bickle of the monetary system now in terms of the boom bust robert harding of the f.t. says indeed the problem is becoming worse since the collapse in one nine hundred seventy one of the old fixed exchange rate system of bretton woods the world has become used to the try lemma of international finance the impossibility of having free capital flows fixed to change rates and an independent monetary policy all at the same time well the trial is that again you don't have anyone who is in

government or in banking who wants to apply any so work accounting principle that would make it difficult or impossible to commit fraud so as a fraud. i know i've got a better idea than just got a balloon and i get the shot i want to try to get this bill and i love the way it's got to get over the railing and it's going to hit. wow fantastic again part of the reason why we're seeing this chaos in the rupee and the various emerging market currencies we saw we've seen the rupee for example fall by over close to forty percent since april. and this is what is again emerging from jackson hole so they've conceded defeat to gold and silver as the article then goes on to say a reliable backstop is impossible when the international system relies on the national currency. u.s.

dollar as its reserve asset only the fed makes dollars in a crisis there are never enough of them a shortage that will only get worse as the world economy grows relative to the us even if the problem for emerging markets right now is too many of them i mean last i checked the indian rupee day was trading at near all time highs i should say the dollar gold is trading at all time highs going to interface with the interface crashing gold is asserting itself as the real true world reserve currency the only real currency that's going to be left after all these emerging currencies crash and after the dollar becomes the currency that nobody wants any more so you're going to have once again if you've been saying for years they're going to end up with gold that'll be the default currency and that's what's going to happen it's going to wash away the fee out scum that is clogging up our global financial system and here this is a remarkable statement from the financial times which is saying that the u.s. economy is shrinking it's too small so many people are living on two dollars

a day as one of the fastest growing populations other than the prison population so on the one hand those who aren't in prison are earning more and more increasingly less than two dollars a day so how are they supposed to finance people in prison that four hundred sixty dollars a day it doesn't add up and. i think gold a single thing that you know i think all this telling us what i've been saying all along that they're calling you know time on the dollar in the world reserve currency and that population the number that you cited here is remarkable the number of people living on two dollars a day in america less i checked was in the five to seven million range and that's the fastest growing population in america people living on two dollars a day or less and that obviously is not exactly the american dream i grew up reading about but that's about four percent of u.s. households and that's before transfers so when they get food stamps it helps them a bit but i know you have the helicopters and i know you have to make your way now back to. london to go do an interview an important interview for the second half of

this program oh yeah i've got to squeeze myself into one of the balloons and then fly myself out of my so. all the way over to london thanks so much for being the cause reports daisy thank you max don't go away much more coming away stay right there. but how you would test that the intentions of somebody and how would you know the intentions of george w. bush one can launch that war on false pretext it's now recognized internationally that they never had weapons of mass action i think that sharing your point of view in any circumstance is a good thing so if you want to open up another country i assume a different source of government or a different type of government or

a different type of authority i think that being open by date in taking it in and perhaps there are better ways of doing it than through force like i just said being invasive but i think that to be open minded i get. the bible says many times the gold is the father of all. i'm sure you called me to serve these children. and those i essentially all finished that you know in times. of that you needed me. my fellow pilgrim. cost. down is probably the kindest soul in the world. can't abandon the child emails that they wouldn't survive it. so he and jurors to

the end pretty much all from a dream can be summed up in just a few words russia and the world was no wolf and we don't want any children to wake up in orphanages more we firmly believe that the parents out there for every child spit up my ego's. welcome back to the kaiser report i max kaiser they it appears that i'm back in london because what let's go to california and speak to charles shoesmith of of two minds dot com josh just with welcome back to the kaiser report thank you max thanks for having me on the show all right charles you smith i've been reading

a lot of your stuff recently you're getting better and better every year charles just with a you say that the fed matters less than we think house. you know the u.s. senate it was a good show over there for you as the only game in town but in actual fact it really doesn't have much control over the real economy all it can do is lower interest rates and make it easier for speculators to skim billions from the real economy. yeah but tell us just with the fed has over the past thirty years created an economy that is essentially in an enormous bubble that they control by either talking about adjusting interest rates visa vi their taper talk or by not adjusting interest rates and so by getting the price of money itself in

the short term to fluctuate based on the fact that there's so much leverage the fed has levered sixty to one seventy one the last london bullion market association as leverage to hundred to one with so much leverage in the system they will have the ability to tweak the economy because they're moving hundreds of billions of dollars in and out of these markets based on whether ben bernanke he hasn't adjusted on any given day. exactly right max and i think the what they do control is totally destructive because as you and i know the whole thing of adjusting zero interest rates and making this money is huge some of cheap money available speculators is basically scammed by some estimates five hundred billion dollars and channel it into the parasitic banks and on the in the real economy though the fed policy isn't it isn't sparking new innovations or productivity they're happening despite the fed and if it's not not improving the real economy

it's not encouraging people to hire more workers and it's not really worrying costs actually the costs of things like college education and health care are soaring because of the fed's cheap money right so they're stoking misallocation that they're not letting the market do its job so the market didn't do its job in the mortgage market we have a subprime crisis the market's not doing its job in the student loan market so now we have a trillion dollar student loan bubble walk us through that the context here is it's the tragic cost in human suffering of the fed's policies in our own way we tend to just look at the fed and talk about the sort of bloodless financial stuff but you know the stone one will you refer to there's a huge it's causing a social depression in which case you know in which people who are going to college are are indebted you know in this new you know futile student loan thing and

they're only able to get married it can't buy a house they're very indebted for most of their adult lives this is causing huge amounts of human suffering so that's the that's the basic context. the the student loan is the. analogy to the housing bubble in the sense that if you. cheap money available and the costs for which your sewing inevitably skyrockets so house from you know two hundred dollars an average price to four hundred thousand student tuition costs have soared about a well one hundred percent in the last twenty years. it's also smart to las vegas they pay people to be a company the whales the large gamblers and these people make sure that the gamblers have a lot of sex that they stay drunk a lot and that they lose a lot of money and the way they pay these people is that they pay them

a percentage of the money they lose so let me ask you about this student loan ponzi scheme in america of the banks are going to make a hundred billion dollars under navy billion dollars in fees from originating loans i can't possibly be paid off that eventually end up being paid for by the slaves in america the taxpayer the u.s. banks make all the money on the processing fees they get paid as a percentage or a fee in terms of how much money is going to be lost so that a bunch of eighteen to twenty two year olds can get hot a lot of sex and get drunk how is that different then las vegas gambling casino business. i guess most people would say the only difference is if you go to las vegas and you know mortgage yourself to the hilt and lose all your money you can at least declare bankruptcy but if you borrow huge sums as a student you can get rid of that debt it's extremely difficult so you're even more of a debt service as a student than you are as a gambler how does

a kid anyone reasonably expect this to be a good idea if you're taking the next generation which you need to create jobs to pay off social security the pay off medicare to pay off the in title the programs you need people to have jobs but you're saying these people graduate with forty thousand dollars in debt on average no job is pick going to pay the debt they're not going to therefore these huge programs are going to go bankrupt how so how many years before social security officially goes bankrupt in your view charles's math. well it's already running about a sixty billion dollar deficit so maybe another decade if if the social security payroll tax doesn't go up or benefits for the wealthy aren't cut but you know max the thing about the student loan is the student loan bubble is that the federal government is now issuing backing six hundred billion of these loans so as you as

you mention the the risk of all these student loans are being offloaded on to the taxpayer and so when nice for students of course default and i think the default rate is already in excess of fifteen or twenty percent then of course it is the tax donkey's who will be stuck with the bill right so this is an issue that seems to cross over partisan lines so i member peter seth talking as a libertarian about this issue two years ago now i see a matter being interviewed on democracy now about the ship coming from a more left wing perspective it seems that finally the financial crisis on wall street have a have have a managed to anger both major camps of politics in america so my next question as to the social unrest the gini coefficient which is the measure of the wealth inequality in any country in america it's getting to dangerous levels that are

associated with quite widespread and dangerous and violent social unrest while americans are exactly that a very rebellious people. and with all the student debt of course putting the damper on the party spirit but how how i would point that is the risk of really stoking some kind of widespread social unrest while she is with. well max i think it ties back into our discussion of the fed because the fed's policies are greatly in encouraging their wealth inequality that we're discussing by making money really cheap and making vast sums of it available to speculators that aren't going to invest it in the real economy and then you're actually increasing the wealth in the most parasitic class you know the financier class and so the fans policies are actively increasing wealth inequality by you know creating bubbles that raise the

cost of housing and education and in funneling huge sums of money to speculators so the fed is is key in this wealth inequality and the politicians who are enabling this this skimming you know by backstopping the banks and by enabling the student loan bubble so i think the unrest will occur when people connect the dots between the politicians who claim they're helping the people when they're actually helping the banks and the fed which is also claiming to help the real economy when in fact it's only helping the banks so when people connect those dots then i think they will be. angry and disillusioned. go back to the last presidential election in the united states there was a can they talk about the fed ron paul and somehow the main media was able to convince the people running the elections to make sure that ron paul's name was not

carried on ballots that he was included in the bates how does the media get so much power in america that they can dictate to the political power brokers in america who they should put on television who they should i mean ron paul at this point started his own television network the ron paul channel on you tube which is already very very popular is that the answer going forward to people just have to create their own t.v. . stations because the mainstream media seems to be completely implicit in this gini coefficient explosion the rise of ron ras the permit under classification of a new generation of debt slaves in america is that the media just seems like they're about to be disrupted in a lot of ways to use the hi tech phrase or anything i think you're a part of that revolution max and that's why i have such admiration for your work in cooley it's a travesty of a mockery of a sham i mean the mainstream media's coverage of all the critical issues of our day workers who are over sixty five of course are already on medicare does that mean

that these people can then be reentering the workforce it certainly seems like they're either reentering the workforce or holding on to their jobs because of course they are they're underwater on their own debt and so they many more people over sixty five apparently need to keep working and this is part of the. consequences of our or sick care system which is where i call sick care other people call health care but the obama care quote solution is really just in my mind support were patients cartels and so that's why health care costs twice as much per person in america as it does in australia france britain canada every other developed democracy is that all this this immensely complicated system of obamacare is really just supporting

a bunch of. repay should score tells me it's not really providing health care that any of us can afford or understand all right sir charles's method of two minds dot com as i said i read your work religiously and as always something cooking what what are you going to be coming out with we got a couple minutes what are going to be coming out with the next week or so that that you're working on right now. well i'm trying to address the idea that that that the risks in arse in our system the financial system our system of government everything are have been and been masked and they've been kind of stuffed under the mattress and so the crisis that we're facing is that. those people who benefit from the system data really they're not exposed to any risk like take the banks or the people who originated all these student loans never know they're not at any risk of losing money because the government's backstopped all their potential losses and so all these risks are piling up in the system and got what is

what will bring the system down is you know you can't just get rid of risk you are you can only offload it to somebody else and i say like a system you mean the fed the fed and also the central states you know all the governments around the world of have are in collusion with their own central banks to kind of enrich the powers that be are right out of his mouth about silence at cut off that thanks so much for being on the kaiser report thank you max. that's going to do it for this edition of the kaiser report with me banks kaiser and stacy herbert i'd like to thank our guest charles you smith of the blog site of two minds dot com if you'd like to get in touch just tweet us that's right get on twitter kaiser report until next time ask another same bio.

they were ready to do anything for their country to me is to love the country more than yourself if you joined the military for any other reason that you're probably not to have a good day they were tools in the hands of the state now they live remembering the past which is impossible to get rid of. the war. but oh ever good people get hurt. and i've heard good people empty silent. a lot. but would prefer not to be sometimes i feel like.

i should have died over there. because i. i saw some people who had died and. there is cheaper than therapy. on our. more news today violence is once again flared up. these are the images the world has been seeing from the streets of canada. giant corporations rule the day.

dramas that can't be ignored. stories others the few still noticing. the faces change lights never. told pictures of six days. from around the globe.

local. t.v. . white house war advocates for the hard sell to lawmakers on president obama's serious trying to plan the pentagon to backtrack on serious accusations against russia. and syria is likely to move large over the g twenty summit in st petersburg with world leaders split on how to solve the conflict and suspicious of the u. was following the tourist surveillance scandal. making money by sacrificing your privacy which he leads to reveals how tech firms are helping governments get inside your online life no matter what the cuban rights record shows.